Section 5 — Taxation, Labor, and Fiscal Safeguards

Purpose

To ensure all citizens can meet basic living needs through fair wages, healthcare continuity, and equitable taxation. This section eliminates the paradox where individuals can earn full-time wages yet still fall below the affordability threshold.

Livable Minimum Wage (LMW)

• Definition: The minimum wage must equal or exceed the local Livable Minimum Wage (LMW), defined as the income required to afford basic needs in that region.
• Formula: LMW = (Regional Basic Cost Index ÷ 160), based on a 40-hour week.
• Basic Costs Include:
  • Food and nutrition standards
  • Utilities, plumbing, and essential broadband
  • Transportation (vehicle or public transit)
  • Healthcare premiums or copays
  • Average local rent or mortgage
  • 10% emergency savings buffer
• If a jurisdiction adopts a shorter workweek (e.g., 32 hours), the LMW is recalculated to maintain the same monthly income target.

Wage Auditing and Enforcement

• The Federal Office of Affordability Oversight (FOAO) conducts biannual wage audits using regional income, cost-of-living, and inflation data.
• Employers paying below LMW rates face restitution equal to back pay plus 20% penalty.
• Tips and commissions cannot count toward minimum wage compliance.

Health Coverage Continuity

• Public and private healthcare programs must guarantee Continuous Eligibility: no lapse may occur between policy end and new coverage start.
• All enrollment systems must synchronize across Medicaid, Medicare, ACA, and employer coverage.
• Enrollment must be open quarterly rather than annually.
• A Universal Minimum Coverage Standard ensures that all residents have at least emergency and primary care access at no cost.

Welfare Realignment and Transition

• SNAP, EBT, and other benefit programs convert to Work-Integrated Assistance (WIA) once wage reforms take effect.
• Benefits taper gradually as income exceeds the LMW threshold, avoiding sudden drop-offs.
• Recipients must either work, actively job-seek, or provide medical exemption proof.
• Savings from reduced dependency fund local housing and job training programs.

Taxation and Marital Equity

• Tax brackets apply per individual, not per household filing unit.
• Dependents reduce taxable income equally for all filers, regardless of marital status.
• Joint filing remains optional but cannot result in a higher tax burden than single filing.

Fiscal Safeguards

• Any affordability-driven tax or wage reform cannot be offset by reducing public funding or raising unrelated taxes.
• A Fiscal Stability Board monitors government revenue changes to ensure the reforms do not cause downstream inflation.