THE AMERICAN PROSPERITY AND STABILITY ACT (APSA)¶

Establishing a Secure Economic Foundation for Every American¶

Revision 4.8¶

SECTION 1: THE PROBLEM -- ECONOMIC PRECARITY IN THE UNITED STATES¶

The modern American economy produces wealth at extraordinary scale, but it does not produce security for most people. Productivity has grown. Corporate profits have grown. Market valuations have grown. Yet the financial stability of individuals and households has eroded. The benefits of growth have been concentrated upward, while the risks of surviving daily life have shifted downward onto individuals and families.

Millions of Americans work full-time, sometimes multiple jobs, and still cannot reliably afford housing, childcare, or medical care. Dual-earner households cannot save at the rate required to build stability. Even slight disruptions -- a car failure, a medical bill, a missed shift -- can send individuals and families into crisis.

This is not simply an economic issue. It shapes everything:

Marriage and family planning decisions
Whether and when people have children
The ability to relocate for work
The capacity to acquire education or retraining
The stability of neighborhoods and communities
The psychological and emotional weather of daily life

When people are forced into survival mode, the future collapses into the present. Life becomes about making it to next week. That is not freedom. It is not dignity. It is not citizenship in any meaningful sense.

This instability expresses itself politically. Fear becomes resentment. Resentment becomes division. Division becomes democratic fracture.

We can see this happening in America right now.

If we want to stabilize democracy, we must stabilize individuals and families.

SECTION 2: THE AMERICAN PROSPERITY STABILITY PAYMENT¶

The American Prosperity Stability Payment provides every eligible adult with a stable monthly income foundation. It is nationwide, predictable, and continuous. It adjusts gradually with income using a smooth formula that eliminates benefit cliffs. There is no punishment for working harder, improving earnings, or advancing one's life.

Unit of Eligibility: The Individual Adult¶

The APSP is calculated and distributed on an individual basis for all adults age 18 and older. This design choice reflects several important principles:

Marriage neutrality: Two individuals receive the same total benefit whether married or unmarried. Marriage neither increases nor decreases household APSP.
Independence: Each adult's benefit is based on their own income, not imputed from a spouse or household member.
Simplicity: Individual-based calculation avoids complex household composition rules that create administrative burden and potential manipulation.
Dignity: Every adult is treated as an independent economic participant in shared prosperity.

Children are addressed through the Secure Our Children Act (SOCA), which provides dedicated support for minors through a separate policy architecture. APSA is an adults-only program. This separation ensures that adult economic participation and child welfare policies can each be optimized for their distinct purposes without creating perverse incentives or administrative complexity.

The Benefit Structure¶

The APSP uses a two-component benefit structure designed to balance political durability with targeted support:

The baseline payment is $200 per month ($2,400 per year) received by all eligible adults below the clean exit threshold. The baseline:

Creates a broad political constituency invested in the program's success
Ensures the APSP is genuinely nationwide -- not a "welfare program" for some subset
Provides a meaningful and tangible benefit even to middle-income earners
Establishes political durability similar to Social Security
Alone covers the typical APC contribution burden, enabling clear messaging: "The baseline covers your contribution; the stability payment is your share of shared prosperity"

The income-adjusted stability payment provides greater support to those who need it most. The stability payment:

Reaches its maximum value at zero income: $428 per month ($5,130 per year)
Tapers gradually using a concave (logarithmic) formula that protects middle-income recipients
Reaches zero at the stability payment exit threshold (7x Federal Poverty Level, approximately $105,420)
Uses a formula that prevents sudden drops -- every additional dollar of income reduces the benefit by a small, predictable amount

Combined maximum benefit at zero income: approximately $628 per month ($7,530 per year), anchored at 50% of the single-person Federal Poverty Level.

FPL-Anchored Thresholds¶

All APSP thresholds are anchored to multiples of the Federal Poverty Level (FPL), which is updated annually by the Department of Health and Human Services. This automatic indexing ensures that the APSP remains appropriately calibrated without requiring annual Congressional action.

Threshold	FPL Multiple	Current Value (2024 FPL)
Maximum benefit	0.5x FPL	~$7,530/year
Stability payment exit	7x FPL	~$105,420/year
Clean exit	10x FPL	~$150,600/year

Below stability payment exit: Receive both baseline and stability payment (full benefit structure)
Between stability payment exit and clean exit: Receive baseline only ($200/month) -- no taper, ensuring minimum payment for all recipients
Above clean exit: Receive no payment

Minimum Payment Guarantee¶

Everyone who qualifies for APSP receives at least $200 per month ($2,400 per year). There is no phase-out or taper of the baseline payment. This ensures:

Clear messaging: "Everyone who qualifies gets at least $200/month"
Administrative simplicity: No complex calculations in the baseline zone
Political durability: Broad constituency with meaningful minimum benefit
Clean exit: Benefits end entirely at 10x FPL, with no gradual phase-out creating confusion

Asset Eligibility Threshold¶

Adults with net worth exceeding $5 million are not eligible for APSP payments. This threshold:

Excludes only the wealthiest 2-3% of adults
Is self-attested on annual filing, with IRS enforcement authority
Prevents the political optics of billionaires receiving stability checks
Does not affect the vast majority of Americans, including most high-income earners

This is not a detailed asset test. It is a bright-line exclusion for substantial wealth that makes APSP receipt inappropriate regardless of annual income.

What the APSP Is -- And Is Not¶

The APSP is not designed to replace work. It is designed to make meaningful work possible. The problem in America is not that people refuse to work. The problem is that work no longer guarantees stability.

The APSP:

Reduces economic coercion
Supports individual planning and household formation
Enables people to leave abusive or exploitative work environments
Encourages entrepreneurship and education
Improves job matching and labor productivity

This is economic empowerment through stability.

Adults in financially stable circumstances:

Make better long-term decisions
Have better physical and mental health outcomes
Build more stable families and communities
Participate more actively in civic life

Stability compounds across time and generations.

The APSP is a national investment in the conditions of freedom.

SECTION 3: THE AMERICAN PROSPERITY CONTRIBUTION¶

The American Prosperity Contribution funds the APSP. It is a broad contribution on goods and services sold for domestic use. It is collected at the value-added stage, using accounting practices that businesses already employ.

The APC does not:

Tax income
Punish hiring
Penalize wage growth
Push investment offshore

Instead, it ensures that those who benefit from a stable, functioning American consumer economy contribute to maintaining that stability.

APC Structure¶

The APC:

Broadens the revenue base beyond income and payroll
Creates predictable revenue across business cycles
Minimizes distortions to production or consumption decisions
Can be administered with manageable compliance burden

Because the APSP is funded through the APC -- not borrowing and not the printing of new money -- it does not introduce inflationary pressure. The APC collects revenue; the APSP distributes it. The net effect on aggregate demand is redistributive, not expansionary.

Rate Schedule and Phase-In¶

The APC is phased in gradually to allow economic adjustment:

Phase	APC Rate	Timeline
Launch	6%	Years 1-2
Expansion	9%	Years 3-4
Full Implementation	12%	Year 5+

At full implementation, the 12% APC rate generates approximately $1.56 trillion in annual revenue based on an estimated $13 trillion taxable consumption base.

The gradual phase-in:

Allows businesses to adjust pricing and systems
Enables monitoring and calibration of distribution mechanics
Builds political constituency as APSP benefits become visible
Reduces economic disruption during transition

Revenue Allocation¶

APC revenue is allocated between federal and state governments:

Allocation	Share	Amount (at 12%)
Federal (APSP + administration)	80%	~$1.25 trillion
State revenue sharing	20%	~$312 billion

This allocation is calibrated to achieve two objectives simultaneously:

Federal adequacy: The 80% federal share (~$1.25 trillion) fully funds the APSP benefit formula at design parameters with appropriate surplus for bridge payback and stability buffer
State coalition: The 20% state share (~$312 billion) provides substantial resources for state governments distributed on a pure population-share basis

States receive their share automatically, with full autonomy over how funds are used. The federal-state split creates a powerful coalition of state governments with direct fiscal interest in APSP success.

APC Exemptions¶

The APC exempts essential categories from contribution:

Housing (rent and imputed rent): Housing costs are already a major burden for lower-income households
Healthcare services: Medical care should not be taxed
Education: Investment in human capital is exempt
Financial services: Complex valuation issues; addressed through other mechanisms

These exemptions reduce the effective APC rate on lower-income household budgets, enhancing progressivity without complex rebate systems.

Border Adjustment¶

The APC is border-adjusted:

Exports are zero-rated (no APC collected on goods leaving the country)
Imports are subject to APC at the same rate as domestic production

This ensures competitive neutrality for American businesses in global markets and prevents the APC from disadvantaging domestic production.

SECTION 4: BRIDGE PERIOD FUNDING¶

The American Prosperity Stability Payment cannot wait for the American Prosperity Contribution to reach full implementation. Benefits must begin flowing before APC revenue is sufficient to fund them. This section establishes the Bridge Period -- the transitional phase between enactment and self-sustaining APC funding.

Bridge Period Definition¶

The Bridge Period begins upon enactment and ends when:

APC revenue funds APSP obligations for two consecutive quarters, and
The Stability Buffer reaches its minimum required reserve level

Until both conditions are met, APSP payments are funded through the hybrid mechanism described below.

Three-Component Hybrid Funding¶

Bridge Period funding combines three sources to balance fiscal responsibility with rapid deployment:

Component	Share	Mechanism
Bounded Deficit	40%	Treasury borrowing with statutory cap
Bridge Taxes	30%	Temporary progressive taxes
APC Pre-Collection	30%	Early APC at reduced rate

This hybrid approach:

Avoids 100% deficit financing (which would invite fiscal criticism)
Avoids 100% upfront taxation (which would delay benefits)
Creates immediate progressive revenue while APC ramps up
Bounds total borrowing exposure

Bounded Deficit Financing¶

(a) Borrowing Authority. The Secretary of the Treasury is authorized to borrow on behalf of the United States to fund APSP obligations during the Bridge Period, subject to the limitations of this section.

(b) Statutory Cap. Total Bridge Period Borrowing shall not exceed $400 billion. This cap may not be increased except by subsequent Act of Congress.

(c) Segregation. Amounts borrowed under this section shall be tracked separately from general Treasury borrowing and reported as "APSP Bridge Period Borrowing" in all public debt statements.

(d) Interest. Interest on Bridge Period Borrowing shall be paid from APC revenue after the Bridge Period ends, as part of the statutory payback requirement.

Bridge Taxes¶

During the Bridge Period, the following temporary taxes are imposed:

(a) Income Surtax. A surtax of 2 percent is imposed on Adjusted Gross Income exceeding:

$100,000 for single filers
$200,000 for joint filers

(b) High-Income Add-On. An additional surtax of 1 percent is imposed on Adjusted Gross Income exceeding:

$500,000 for single filers
$1,000,000 for joint filers

(c) Corporate Surtax. A surtax of 4 percent is imposed on corporate taxable income exceeding $1,000,000.

(d) Sunset. All taxes imposed under this section terminate automatically upon certification of the end of the Bridge Period. No Congressional action is required to end these taxes.

(e) Progressivity. The bridge taxes are designed to fall primarily on high-income individuals and profitable corporations -- those most able to contribute during the transition and those who will bear the smallest net burden under the full APC/APSP system.

APC Pre-Collection¶

(a) Early Implementation. Beginning no later than 12 months after enactment, the APC shall be collected at a reduced rate of 3-4 percent.

(b) Purpose. APC pre-collection serves two functions:

Generates revenue to support Bridge Period funding
Builds APC collection infrastructure and business compliance systems before full implementation

(c) Rate Transition. The APC pre-collection rate shall increase to the Launch Phase rate (6%) upon certification of the end of the Bridge Period.

Statutory Payback¶

(a) Requirement. Bridge Period Borrowing shall be repaid from APC surplus after the Bridge Period ends. This is a statutory obligation, not a discretionary appropriation.

(b) Timeline. The Secretary shall establish a repayment schedule that retires Bridge Period Borrowing within 6-8 years following the end of the Bridge Period, subject to economic conditions and Stability Buffer adequacy.

(c) Priority. Repayment of Bridge Period Borrowing has priority over Stability Buffer contributions beyond the minimum reserve level.

(d) Reporting. The Secretary shall report to Congress annually on the status of Bridge Period Borrowing retirement, including: principal remaining, interest paid, projected retirement date, and any circumstances that may delay retirement.

(e) Estimated Payback Timeline. Based on projected APC revenue at Full Implementation and anticipated surplus margins, Bridge Period Borrowing is expected to be fully retired within 6-8 years following the end of the Bridge Period, subject to economic conditions.

Bridge Period Implementation Timeline¶

The following timeline governs Bridge Period implementation:

Month	Milestone
0	Enactment; Bridge taxes take effect next quarter
6-12	Rapid deployment begins; first APSP payments flow
12-18	APC pre-collection begins (3-4% rate)
18-24	APC reaches Launch Phase rate (6%); pre-collection ends
24-30	Bridge taxes phase out as APC revenue reaches steady state
30+	Bridge Period ends; statutory payback begins

(a) Recipient Continuity. Recipients shall experience seamless continuity throughout the Bridge Period. The transition between funding sources is an accounting matter; benefit amounts and payment schedules shall not be affected by the funding source.

(b) Flexibility. The Secretary may adjust the timing of milestones within this section by up to 90 days if necessary for orderly implementation, provided that such adjustments do not reduce APSP benefit amounts or delay benefit payments to eligible individuals.

Comparison to Prior Federal Bridge Funding¶

The Bridge Period funding structure is comparable in scale to prior federal economic interventions:

Program	Duration	Total Cost	Funding
COVID Economic Impact Payments	~13 months	~$931 billion	100% deficit
APSP Bridge Period	~24 months	~$900 billion	40% deficit, 30% bridge tax, 30% APC

The critical difference: COVID stimulus was pure deficit spending with no dedicated payback mechanism. APSP Bridge Period funding transitions to self-sustaining APC revenue and includes a statutory payback requirement. This is not emergency spending without an exit -- it is investment in infrastructure that pays for itself.

SECTION 5: A UNIFIED SYSTEM¶

The American Prosperity Stability Payment (APSP) and the American Prosperity Contribution (APC) are not separate policies. They are a single, integrated system designed to stabilize the foundational conditions of American life. One supplies stable, reliable revenue. The other supplies stable, reliable income. Together, they reduce the structural precarity that currently destabilizes individuals, families, labor markets, and democracy itself.

The system operates on a stability feedback loop:

The APC provides broad, predictable revenue.
The APSP translates that revenue into individual-level financial security.
Financial security enables planning, reduces desperation, and improves economic participation.
Improved economic participation generates stable consumption that sustains the APC.

This is not wealth redistribution for its own sake. It is system design aimed at reducing the variance in American economic life, so that ordinary risks -- a car breakdown, a medical bill, a seasonal layoff -- do not spiral into crises.

The State Partnership¶

State governments are not passive recipients in this system. The 20% state revenue share creates coalition alignment:

Governors have a direct fiscal interest in APSP success
State treasuries receive predictable, population-based funding (~$931/person annually)
States retain full discretion over use of their share
Political accountability flows through normal state democratic processes

This is not federal mandates. It is federal collection efficiency paired with state allocation discretion.

The Make-Whole Principle¶

The APSP is calibrated so that middle-income Americans are approximately "made whole" for their APC contribution through their APSP benefit:

Income Level	Approx. APC Burden	APSP Benefit	Net Position
$30,000	~$2,200	~$6,500	+$4,300
$55,000	~$4,000	~$4,800	+$800
$75,000	~$5,500	~$3,900	-$1,600
$100,000	~$7,300	~$2,500	-$4,800
$150,600+	~$11,000+	$0	Net contributor

The make-whole crossover occurs around $55,000-$60,000 in income. Adults below this level are net recipients; adults above are net contributors. But even net contributors benefit from the stability the system provides -- stable consumer demand, reduced social friction, and state investments funded by their share.

Twenty percent (20%) of APC revenue is distributed to state governments. At full implementation (12% APC), this represents approximately $312 billion annually.

Distribution Formula¶

State shares are calculated on a pure population basis:

State Share = (State Population / National Population) * Total State Revenue

Each state receives a percentage of total state revenue equal to its percentage of national population. This formula:

Is mathematically uncontestable
Requires no subjective weighting decisions
Cannot be manipulated through policy choices
Updates automatically with Census data

State Discretion¶

(a) Full Autonomy. States have complete discretion over how their revenue share is used. There are no federal mandates, earmarks, or conditions attached to state shares.

(b) Normal Appropriation Process. State revenue shares flow to state treasuries and are subject to normal state appropriation processes. State legislatures determine how funds are allocated through their standard budget procedures.

(c) No Federal Evaluation. The federal government does not evaluate, approve, or disapprove state allocation decisions. States are accountable to their own voters, not to federal administrators.

Transparency Requirements¶

While states have full discretion over allocation, they must report how funds are used:

(a) Annual Report. Each state shall publish an Annual State APC Revenue Report within 90 days of the close of each state fiscal year.

(b) Contents. The report shall include:

Total APC revenue share received
Allocation by major category (using standardized Treasury categories)
Year-over-year comparison
Narrative explanation of significant allocation changes

(c) Standardized Categories. Treasury shall establish standardized reporting categories to enable cross-state comparison. Categories shall include but not be limited to:

Education (K-12, higher education, workforce development)
Transportation infrastructure
Public safety
Health and human services
General government operations
Debt service
Reserves and rainy day funds
Tax reduction or rebate programs
Other (with explanation)

(d) Federal Compilation. Treasury shall compile state reports into a national summary, including comparison tables and a public dashboard enabling citizens to compare how different states allocate their shares.

(e) No Federal Judgment. Federal compilation is purely informational. Treasury shall not rank states, issue grades, or express approval or disapproval of state allocation choices.

Enforcement for Non-Reporting¶

States that fail to file required reports face escalating consequences:

Days Late	Consequence
1-30	Technical assistance offered; written response required; no penalty
31-60	50% of quarterly distribution withheld (escrowed)
61+	100% of distributions withheld until report filed
180+	20% penalty on escrowed funds; penalty amount redistributed to compliant states

(a) Cure Provision. A state that files a compliant report within 60 calendar days of the original deadline faces no penalty regardless of when within that window the report is filed.

(b) Escrow Release. Upon filing a compliant report, escrowed funds are released within 30 days.

(c) Penalty Distribution. Penalty amounts collected from non-compliant states are redistributed to compliant states on a population-share basis. Penalties are not retained by the federal government.

(d) No Escalation. Each reporting cycle is evaluated independently. A state's compliance history does not affect penalties for future violations. This prevents permanent punishment while maintaining accountability.

Democratic Accountability Framework¶

The state revenue share is designed to enhance, not circumvent, democratic accountability:

(a) Campaign Trail Question. State revenue shares are large enough to be politically significant. Candidates for Governor and state legislature must articulate how they would allocate these funds. Voters can evaluate competing visions.

(b) Visible Allocation. Annual reporting ensures voters can see how their state uses its share and compare to other states.

(c) Subsidiarity. The federal government handles collection efficiently; states handle allocation according to local priorities; citizens hold state officials accountable. Each level does what it does best.

Cross-Partisan Appeal¶

The state revenue sharing framework is designed to appeal across political perspectives:

State's rights conservatives: No federal mandates; states control their money
Progressive federalists: Guaranteed funding for state programs; reduces race-to-the-bottom pressure
Good government reformers: Transparency without bureaucracy; citizen-accessible comparison tools
Fiscal conservatives: Simple formula; minimal administrative overhead; no new federal bureaucracy

SECTION 7: INCOME DEFINITION AND PROGRAM INTERACTIONS¶

Income Definition¶

For APSP purposes, "income" means Adjusted Gross Income (AGI) as defined under the Internal Revenue Code. This explicit anchoring means:

APSP inherits existing federal income definitions
No parallel income measurement system is created
Edge case questions are resolved by reference to existing tax law
Items included in AGI count for APSP; items excluded from AGI are excluded from APSP

Program Coexistence¶

The APSP is designed to coexist with the existing social safety net, not replace it. Existing programs address specific needs (disability, unemployment, old age, healthcare) that a broad stability payment cannot target. The APSP provides a foundation; categorical programs provide targeted support.

APSP Interaction with Means-Tested Programs¶

(a) General Rule. APSP payments are counted as income for purposes of determining eligibility for other federal programs, consistent with the AGI-based income definition.

(b) Targeted Disregard -- SSI. For purposes of determining eligibility for Supplemental Security Income (SSI), APSP payments shall be disregarded entirely. SSI's dollar-for-dollar benefit reduction would otherwise create net losers among the most vulnerable population.

(c) Targeted Disregard -- TANF. For purposes of determining eligibility for Temporary Assistance for Needy Families (TANF), APSP payments shall be disregarded entirely. TANF's low income thresholds and state variation would otherwise create net losers in many states.

(d) No Disregard -- Gradually-Adjusting Programs. Programs that adjust benefits gradually based on income changes (SNAP, Medicaid, Section 8 Housing, LIHEAP) do not require APSP disregard. These programs are designed to handle income variations without creating cliff effects or net losers.

(e) Rationale. The targeted disregard approach prevents day-one losers among the most vulnerable populations while maintaining program consistency for the vast majority of recipients. The goal is not to maximize theoretical benefit stacking, but to ensure that no one is worse off from APSP implementation.

SECTION 8: LEGAL PROTECTIONS¶

Anti-Garnishment Protection¶

(a) Protected Status. APSP payments shall not be subject to garnishment, attachment, levy, or execution under any federal or state law, except as provided in subsection (b).

(b) Exceptions. APSP payments may be subject to:

Federal tax obligations
Child support obligations pursuant to court order

(c) Commingling. Once deposited into a recipient's account, APSP payments lose protected status and are treated as general funds. The protection applies to the payment itself, not to all funds in an account.

Non-Assignability¶

APSP payments cannot be assigned, pledged as collateral, or transferred to another party. Any contract or agreement purporting to assign APSP payments is void and unenforceable.

Administrative Appeal Rights¶

(a) Right to Appeal. Any individual whose APSP eligibility or benefit amount is adversely determined has the right to administrative appeal.

(b) Timeline. Appeals must be filed within 60 days of adverse determination. The administering agency must issue a decision within 90 days of appeal filing.

(c) Continuation. During the appeal period, APSP payments continue at the prior level unless the appeal concerns initial eligibility.

(d) Judicial Review. Administrative appeal decisions are subject to judicial review in federal district court.

SECTION 9: TRANSITION AND INTEGRATION¶

Phase-In Schedule¶

The full APSP benefit structure phases in alongside the APC rate:

Phase	APC Rate	Stability Scale	Max Monthly APSP
Launch	6%	40%	~$371
Expansion	9%	69%	~$495
Full	12%	100%	~$628

The baseline payment ($200/month) is paid in full from Launch Phase. Only the income-adjusted stability payment scales with APC rate during phase-in.

Interaction with Existing Tax Filing¶

(a) Automatic Enrollment. Adults who file federal income tax returns are automatically enrolled in APSP based on their most recent filing. No separate application is required.

(b) Non-Filers. Adults who do not file federal income tax returns may establish eligibility through a Simple Form (see Section 10) or by filing a return.

(c) Timing. APSP benefits for a given year are calculated based on the prior year's AGI. Benefits adjust annually when new tax information becomes available.

AEPA Consolidation¶

As of Revision 4.0, the functions previously contemplated in the American Economic Participation Act (AEPA) have been consolidated into:

APSA Section 10: Rapid deployment, enrollment, and outreach
APNA: Payment infrastructure and account access

The AEPA is superseded as a standalone act.

APN Integration¶

When the American Payment Network Act (APNA) is operational, APSP payments shall be distributed through Network Accounts. Until APNA is operational, payments shall be distributed through existing Treasury payment infrastructure (direct deposit, Direct Express, or paper check).

SECTION 10: RAPID DEPLOYMENT AND ENROLLMENT¶

Accrual from Day One¶

(a) Effective Date. APSP benefits begin accruing for all eligible individuals upon the effective date of this Act.

(b) Trust Holding. Benefits accrued prior to enrollment completion are held in trust by the Treasury and delivered upon enrollment. No eligible individual loses benefits due to administrative processing time.

(c) First Payment. The first APSP payment to any individual includes all accrued benefits from the effective date through the payment date.

Staggered Administrative Targets¶

The Secretary shall implement APSP enrollment using the following staggered targets:

Population Segment	Target Timeline	Infrastructure
Tax filers with direct deposit on file	90 days	IRS existing systems
Current SSA beneficiaries	120 days	SSA payment systems
Tax filers without direct deposit	120 days	IRS + Treasury outreach
Non-filers with W-2 earnings history	180 days	SSA outreach via employer records
Adults without tax or earnings records	12 months	Community outreach; APN Agents

(a) Priority. The targets represent administrative goals, not eligibility criteria. Failure to meet a target does not affect any individual's eligibility or benefit amount.

(b) Reporting. The Secretary shall report enrollment progress by population segment monthly during the first year and quarterly thereafter.

SSA Coordination¶

(a) Data Sharing. The Commissioner of Social Security shall provide the Secretary of the Treasury with data necessary to identify potentially eligible adults who do not file tax returns, including individuals with W-2 earnings history but no tax filing.

(b) Outreach. SSA shall conduct targeted outreach to non-filers identified through earnings records, informing them of APSP eligibility and enrollment procedures.

(c) Memorandum of Understanding. The Secretary and Commissioner shall enter into a memorandum of understanding within 60 days of enactment specifying data sharing protocols, privacy protections, and outreach responsibilities.

Workforce Assessment¶

(a) Initial Assessment. Within 180 days of enactment, the Secretary shall complete an assessment of IRS and Treasury workforce capacity to administer APSP enrollment and payment distribution.

(b) GAO Review. The Government Accountability Office shall review the Secretary's assessment and provide independent recommendations to Congress within 90 days of assessment completion.

(c) Biennial Reassessment. The Secretary shall reassess workforce capacity every two years during the phase-in period.

(d) Sunset. Workforce assessment requirements terminate upon certification of Full Implementation steady state.

Asset Attestation¶

(a) Filer Attestation. Tax filers shall attest to asset eligibility (net worth below $5 million) through a checkbox on IRS Form 1040 or equivalent.

(b) Non-Filer Attestation. Non-filers shall attest to asset eligibility on the Simple Form.

(c) Verification. The IRS has authority to verify asset attestations using existing enforcement mechanisms. Knowing false attestation is subject to existing penalties for tax fraud.

(d) True Per-Person Evaluation. Asset evaluation is conducted on an individual basis. For jointly held assets, each individual's net worth includes their proportional share of joint assets at fair market value.

Simple Form for Non-Filers¶

(a) Establishment. The Secretary shall establish a one-page "Simple Form" for adults who do not file tax returns to establish APSP eligibility.

(b) Contents. The Simple Form shall require only:

Identity verification (name, date of birth, Social Security Number)
Asset attestation ($5 million threshold)
Banking information (optional -- individuals may request a Network Account or Direct Express card instead)

(c) Availability. Simple Forms shall be available at:

SSA field offices
Public libraries
Post offices
Online (with identity verification)
By mail upon request

(d) Processing. Simple Forms shall be processed within 30 days of receipt. Approved individuals receive accrued benefits in their first payment.

Benefit Integrity¶

(a) No Suspension Pending Investigation. APSP payments shall not be suspended pending investigation of eligibility. If an individual is later determined ineligible, reclamation procedures apply.

(b) Reclamation. The Secretary may reclaim APSP payments made to ineligible individuals only for:

Knowing false attestation of eligibility
Identity fraud

(c) Reclamation Limits. Reclamation may not:

Exceed 36 months of payments
Reduce ongoing APSP payments below 75% of the amount otherwise due
Impose penalties beyond repayment of amounts received

(d) Good-Faith Safe Harbor. Individuals who made good-faith eligibility attestations that later prove incorrect are not subject to reclamation if they correct the attestation within 90 days of discovering the error.

Outreach Accountability¶

(a) Annual Reporting. The Secretary shall report annually on outreach efforts, enrollment rates by population segment, and barriers to enrollment.

(b) Remediation Trigger. If enrollment in any population segment falls below 80% of estimated eligible population for two consecutive years, the Secretary shall submit a remediation plan to Congress.

(c) Community Partnerships. The Secretary is authorized to enter into partnerships with community organizations, state agencies, and tribal governments to conduct APSP outreach and enrollment assistance.

SECTION 11: STABILITY BUFFER AND FISCAL INTEGRITY¶

Stability Buffer Establishment¶

(a) Creation. There is established within the Treasury a Stability Buffer to ensure uninterrupted APSP payments during revenue downturns.

(b) Minimum Reserve. The Stability Buffer shall maintain a minimum reserve equal to 6 months of projected APSP outlays.

(c) Target Reserve. The target reserve level is 12 months of projected APSP outlays.

(d) Initial Funding. During the Bridge Period and Launch Phase, the Stability Buffer shall be funded from APC revenue after APSP obligations are met, until the minimum reserve level is reached.

Automatic Rate Adjustment¶

(a) Trigger. If the Stability Buffer falls below its minimum reserve level (6 months of outlays) for two consecutive quarters, the APC rate shall automatically increase by 0.25 percentage points.

(b) Cap. Automatic rate increases under this section may not exceed 2.0 percentage points cumulative (i.e., maximum automatic increase from 12% to 14%).

(c) Reversal. If the Stability Buffer exceeds its target reserve level (12 months of outlays) for four consecutive quarters, any automatic rate increases shall be reversed in 0.25 percentage point increments until the base rate (12%) is restored.

(d) Congressional Override. Congress may at any time legislate a different APC rate, overriding automatic adjustments.

Solvency Trigger and Congressional Notification¶

(a) Trigger. If the Stability Buffer is projected to be exhausted within 18 months based on current trends, the Secretary shall notify Congress and the President.

(b) Contents. The notification shall include:

Projected exhaustion date
Causes of the shortfall
Options for restoring solvency
Recommended action

(c) Congressional Action. Upon receiving notification, Congress shall consider legislation to restore solvency. Options include but are not limited to:

Temporary APC rate increase beyond automatic adjustment limits
Temporary APSP benefit adjustment
General fund transfer
Other measures

(d) Default. If Congress does not act within 180 days of notification, automatic APC rate increases beyond the 2.0 percentage point cap are authorized until solvency is restored.

Recession Response¶

(a) Automatic Stabilizer. The APSP functions as an automatic economic stabilizer. During recessions:

More individuals become eligible as incomes fall
Existing recipients receive higher stability payments as their incomes decline
This injects demand into the economy precisely when it is most needed

(b) Counter-Cyclical Design. The APC's broad consumption base means revenue declines are smaller than income tax revenue declines during recessions. The Stability Buffer absorbs the gap.

(c) No Pro-Cyclical Cuts. APSP benefits shall not be reduced during recessions. The combination of Stability Buffer, automatic rate adjustments, and solvency trigger ensures benefits continue even during severe downturns.

SECTION 12: ADMINISTRATION AND OVERSIGHT¶

Administering Agency¶

The American Prosperity Stability Payment shall be administered by the Department of the Treasury, with the following division of responsibilities:

Function	Responsible Entity
Eligibility determination	Internal Revenue Service
Payment distribution	Bureau of the Fiscal Service
APC collection	Internal Revenue Service
State revenue sharing	Bureau of the Fiscal Service
Stability Buffer management	Bureau of the Fiscal Service
Oversight and reporting	Treasury Inspector General for Tax Administration

American Prosperity Oversight Council¶

(a) Establishment. There is established an American Prosperity Oversight Council to monitor APSP implementation and recommend adjustments.

(b) Membership. The Council shall consist of:

The Secretary of the Treasury (Chair)
The Commissioner of Internal Revenue
The Commissioner of Social Security
Three public members appointed by the President with Senate confirmation
Two members appointed by the Speaker of the House
Two members appointed by the Senate Majority Leader

(c) Terms. Public members serve 6-year staggered terms. Congressional appointees serve at the pleasure of their appointing authority.

(d) Duties. The Council shall:

Monitor APSP enrollment, distribution, and fiscal status
Review APC collection and compliance
Assess program interaction with other federal benefits
Recommend adjustments to Congress
Publish an annual report on program status

Reporting Requirements¶

(a) Quarterly Reports. The Secretary shall publish quarterly reports on:

APSP enrollment by population segment
APSP payments distributed
APC revenue collected
Stability Buffer status
State revenue sharing distributed

(b) Annual Report. The Council shall publish an annual comprehensive report including:

All quarterly report data
Program interaction analysis
Demographic analysis of recipients
Economic impact assessment
Recommendations for improvement

(c) Public Availability. All reports shall be made available to the public on Treasury's website.

Payment Infrastructure¶

(a) Integrated Infrastructure. When the American Payment Network Act (APNA) is operational, APSP payments shall be distributed through Network Accounts established under that Act.

(b) Standalone Infrastructure. If APNA is not operational, APSP payments shall be distributed through:

Direct deposit to existing bank accounts (for individuals who provide banking information)
Direct Express debit cards (for individuals without bank accounts who request this option)
Paper checks (as last resort for individuals who cannot access electronic payment)

(c) No Fees. Recipients shall not be charged any fee for receiving APSP payments regardless of distribution method.

(d) Payment Schedule. APSP payments shall be made monthly, on a consistent date, with the first payment of each calendar year including any annual adjustment.

Privacy and Data Protection¶

(a) Use Limitation. Data collected for APSP administration may be used only for:

Determining APSP eligibility
Calculating APSP benefit amounts
Distributing APSP payments
Verifying compliance with eligibility requirements
Program evaluation and reporting (in de-identified form)

(b) Disclosure Prohibition. APSP eligibility status and payment amounts shall not be disclosed to:

Employers
Creditors
Landlords
Any private party

except upon written authorization by the recipient or pursuant to court order.

(c) No Garnishment. APSP payments shall not be subject to garnishment, attachment, or levy, except for:

Federal tax obligations
Child support obligations pursuant to court order

(d) Penalties. Unauthorized disclosure of APSP data is subject to the same penalties as unauthorized disclosure of tax return information under 26 U.S.C. Section 7213.

APPENDIX A: DEFINITIONS¶

Adjusted Gross Income (AGI): As defined under the Internal Revenue Code. For APSP purposes, AGI is the income measurement basis for determining eligibility and benefit amounts. APSP inherits the federal government's existing definition of income without creating independent inclusion or exclusion rules.

American Prosperity Contribution (APC): A broad contribution on goods and services sold for domestic use, administered at the value-added stage. The APC funds both the APSP and the state revenue share. At full implementation, the APC rate is 12%.

APC Pre-Collection: Early collection of the American Prosperity Contribution at a reduced rate (3-4%) prior to the Launch Phase, authorized during the Bridge Period to help fund initial APSP obligations.

Baseline Payment: The first component of the APSP benefit structure. All eligible adults below the clean exit threshold receive the baseline payment of $200 per month ($2,400 per year). The baseline is flat -- there is no phase-out or taper. This creates a broad political constituency, ensures the program is genuinely nationwide, and alone covers the typical APC contribution burden for middle-income households. The minimum payment guarantee ensures that no one who qualifies receives less than $200/month.

Bridge Period: The transitional period between APSA enactment and full APC implementation, during which APSP payments are funded through a combination of bounded deficit financing, progressive bridge taxes, and APC pre-collection. The Bridge Period ends when APC revenue funds APSP obligations for two consecutive quarters and the Stability Buffer reaches its minimum reserve level.

Bridge Period Borrowing: Amounts borrowed by the Treasury to fund APSP obligations during the Bridge Period, subject to a statutory cap of $400 billion and a mandatory payback requirement from APC surplus after full implementation.

Bridge Taxes: Temporary progressive taxes imposed during the Bridge Period, including: an income surtax (2% on AGI above $100,000/$200,000), a high-income add-on (1% on AGI above $500,000/$1,000,000), and a corporate surtax (4% on taxable income above $1,000,000). All bridge taxes sunset automatically at the end of the Bridge Period.

Clean Exit Threshold: The income level (10x Federal Poverty Level, approximately $150,600) at which APSP eligibility ends entirely. Adults with income above this threshold receive no APSP payment. Approximately 90% of American adults have income below the clean exit threshold.

Enrollment Tranche: A population segment grouped by administrative infrastructure for purposes of rapid deployment (e.g., tax filers with direct deposit, SSA beneficiaries, non-filers with earnings history, adults without tax or earnings records).

Federal Poverty Level (FPL): The income threshold published annually by the Department of Health and Human Services. APSP thresholds are anchored to FPL multiples to ensure automatic indexing without requiring Congressional action.

Income: For APSP purposes, income means Adjusted Gross Income (AGI) as defined under the Internal Revenue Code. APSP does not create independent rules for what counts as income; it uses the existing federal definition. Items included in AGI (wages, Social Security benefits, investment income, etc.) are counted for APSP calculation. Items excluded from AGI under existing tax law (child support received, gifts, municipal bond interest, etc.) are also excluded from APSP calculation. This approach anchors APSP to established tax infrastructure and avoids creating parallel income measurement systems.

Income-Adjusted Stability Payment: The second component of the APSP benefit structure. The income-adjusted stability payment provides additional support to lower-income adults, tapering gradually from a maximum of approximately $428 per month ($5,130 per year) at zero income to zero at the stability payment exit threshold. This component uses a concave (logarithmic) formula that protects middle-income recipients from steep phase-out rates.

Make-Whole Crossover: The income level (approximately $55,000-$60,000) at which APC contribution burden equals APSP benefit received. Adults below this income are net recipients; adults above are net contributors.

Maximum Benefit: The APSP payment at zero income, set at 50% of the single-person Federal Poverty Level (approximately $7,530 per year or $628 per month). This represents the combined baseline ($200) and maximum income-adjusted stability payment ($428).

Network Account: When the American Payment Network Act (APNA) is operational, a secure, fee-free digital account provided to every eligible individual for receiving APSP and other federal payments.

Simple Form: A one-page form for adults who do not file tax returns to establish APSP eligibility. The Simple Form requires only identity verification, asset attestation, and optional banking information, and is available at SSA field offices, public libraries, post offices, online, and by mail.

Stability Buffer: A reserve fund that prevents shocks to APC rates and ensures uninterrupted APSP payments during recessions or revenue downturns.

Stability Payment Exit Threshold: The income level (7x Federal Poverty Level, approximately $105,420) at which the income-adjusted stability payment component reaches zero. Adults with income between the stability payment exit and clean exit thresholds receive only the baseline payment ($200/month flat).

Taper Parameter: The formula parameter (k=5 in the logarithmic taper) that determines how quickly the income-adjusted stability payment phases out with rising income. The concave taper protects middle-income recipients from steep marginal phase-out rates.

APPENDIX B: RATE TABLES AND FORMULA SPECIFICATION¶

APSP Formula¶

The American Prosperity Stability Payment is calculated using the following formula:

Constants:

Symbol	Name	Formula	Value (2024 FPL)
P	Federal Poverty Level	HHS annual update	$15,060
T	Clean Exit Threshold	10 x P	$150,600
S	Stability Payment Exit Threshold	7 x P	$105,420
Baseline	Baseline Payment	Fixed	$2,400/year
B_max	Maximum Benefit	0.5 x P	$7,530/year
Stability_max	Maximum Stability Payment	B_max - Baseline	$5,130/year
k	Taper Parameter	Fixed	5

Formula:

For individual with annual AGI = I:

If I >= T (clean exit threshold):
    APSP = $0

Else if I >= S (stability payment exit threshold):
    APSP = Baseline
    [Flat $2,400/year -- no taper]

Else:
    APSP = Baseline + Stability_max * ln(1 + k * (1 - I/S)) / ln(1 + k)

The logarithmic (concave) taper on the stability payment protects middle-income recipients by concentrating phase-out at lower incomes where each dollar of benefit has higher marginal utility. The baseline payment remains flat at $200/month for all recipients below the clean exit threshold.

Distribution Table: Full Implementation (12% APC)¶

AGI	Stability	Baseline	Monthly APSP	Annual APSP	Status
$0	$428	$200	$628	$7,530	Max benefit
$15,000	$398	$200	$598	$7,176	Full support
$20,000	$386	$200	$586	$7,032	Full support
$30,000	$363	$200	$563	$6,756	Full support
$40,000	$337	$200	$537	$6,444	Strong support
$50,000	$307	$200	$507	$6,084	Strong support
$60,000	$274	$200	$474	$5,688	Strong support
$75,000	$213	$200	$413	$4,956	Moderate support
$80,000	$188	$200	$388	$4,656	Moderate support
$90,000	$130	$200	$330	$3,960	Moderate support
$100,000	$55	$200	$255	$3,060	Modest support
$105,420 (7x FPL)	$0	$200	$200	$2,400	Baseline only
$120,000	--	$200	$200	$2,400	Baseline only
$135,000	--	$200	$200	$2,400	Baseline only
$150,600 (10x FPL)	--	--	$0	$0	Clean exit

Distribution Table: Launch Phase (6% APC, Stability Scale 40%)¶

AGI	Stability	Baseline	Monthly APSP	Annual APSP
$0	$171	$200	$371	$4,452
$20,000	$154	$200	$354	$4,248
$40,000	$135	$200	$335	$4,020
$60,000	$110	$200	$310	$3,720
$80,000	$75	$200	$275	$3,300
$100,000	$22	$200	$222	$2,664
$105,420+	$0	$200	$200	$2,400

Distribution Table: Expansion Phase (9% APC, Stability Scale 69%)¶

AGI	Stability	Baseline	Monthly APSP	Annual APSP
$0	$295	$200	$495	$5,940
$20,000	$266	$200	$466	$5,592
$40,000	$232	$200	$432	$5,184
$60,000	$189	$200	$389	$4,668
$80,000	$130	$200	$330	$3,960
$100,000	$38	$200	$238	$2,856
$105,420+	$0	$200	$200	$2,400

Revenue and Cost Projections: Full Implementation (12% APC)¶

Item	Amount
Taxable consumption base	~$13.0 trillion
Gross APC revenue (12%)	~$1.56 trillion
Federal share (80%)	~$1.25 trillion
State share (20%)	~$312 billion
APSP payment obligations (90% coverage)	~$1.12 trillion
Federal surplus (before bridge payback)	~$130 billion
State investment per capita	~$931/person

Comparison: Rev 4.5 vs Rev 4.6 at Full Implementation¶

Parameter	Rev 4.5	Rev 4.6	Change
APC Rate	13.25%	12.00%	-1.25%
Clean Exit Threshold	8x FPL ($120,480)	10x FPL ($150,600)	+$30,120
Coverage	~84%	~90%	+6%
Baseline Payment	$1,800/year	$2,400/year	+$600
Stability_max	$5,730/year	$5,130/year	-$600
Max Benefit (at $0)	$7,530/year	$7,530/year	$0
Gross APC Revenue	~$1.72T	~$1.56T	-$160B
Federal Share	~$1.38T	~$1.25T	-$130B
State Share	~$344B	~$312B	-$32B
State per capita	~$1,036	~$931	-$105

Alternative Scenarios Analyzed¶

Scenario	APC	Fed/State	Fed Rev	State Rev	Coverage	Max Benefit
Rev 4.6 (Current)	12%	80/20	$1.25T	$312B	90%	$628/mo
Rev 4.5	13.25%	80/20	$1.38T	$344B	84%	$628/mo
Rev 4.4	13.25%	74/26	$1.28T	$448B	84%	$628/mo
Higher Coverage	12.5%	80/20	$1.30T	$325B	90%	$628/mo
Lower Rate	11%	80/20	$1.14T	$286B	90%	$560/mo

Rev 4.6 was selected because it eliminates excess surplus while improving program parameters: lower rate, broader coverage, higher baseline. The result is better outcomes for recipients with reduced political attack surface.

APPENDIX C: IMPLEMENTATION TOPICS FOR FURTHER DEVELOPMENT¶

Items Resolved in Rev 2.3¶

The following implementation questions have been resolved through distribution modeling:

[x] Unit of analysis: Individual adult (18+), not household
[x] Children: Addressed by SOCA, not APSA
[x] Income attribution for joint filers: Actual individual earnings (marriage neutral)
[x] Asset eligibility threshold: $5 million net worth, self-attested
[x] Stability payment exit threshold: 7x FPL (~$105,420)
[x] Maximum benefit: 50% FPL (~$7,530/year)
[x] Distribution tables at each phase-in level
[x] Make-whole constraint verification: Crossover ~$55-60k at all rates
[x] Stability payment scaling during phase-in: 40% -> 69% -> 100%

Items Resolved in Rev 2.4¶

[x] Baseline amount: $150/month ($1,800/year) -- equals make-whole floor (superseded by Rev 4.6: $200/month)
[x] Stability_max: $478/month ($5,730/year) -- adjusted to maintain constant maximum benefit (superseded by Rev 4.6: $428/month)
[x] Benefit structure: Baseline ($150/month) + income-adjusted stability payment (logarithmic taper, k=5)

Items Resolved in Rev 3.0¶

[x] Act name: American Prosperity and Stability Act (APSA)
[x] Payment name: American Prosperity Stability Payment (APSP)
[x] Terminology: Replaced "Sea and Wave" metaphor with straightforward language (baseline payment, income-adjusted stability payment)

Items Resolved in Rev 4.5¶

[x] Federal/state revenue split: Updated from 74/26 to 80/20
[x] State revenue share: 20% of APC revenue (~$344B annually at full implementation) (superseded by Rev 4.6: ~$312B at 12% rate)
[x] State distribution formula: Pure population share (replaces multi-factor approach)
[x] Sales tax replacement framing: Removed as state-specific promise; states retain full discretion
[x] State transparency requirements: Annual State APC Revenue Report with standardized template
[x] Reporting categories: Education, transportation, public safety, health, general government, debt service, reserves, tax reduction, other
[x] Federal compilation role: Treasury compiles state reports, publishes comparison tables and dashboard; no evaluation or approval role
[x] Enforcement ladder for non-reporting: 30/60/180-day escalation with cure provision
[x] Penalty structure: 20% penalty on escrowed funds redistributed to compliant states (not to federal government)
[x] Repeat violation treatment: No escalation; each compliance cycle evaluated independently
[x] Fund flow clarification: Revenue share flows to state treasury, subject to normal appropriation process
[x] Democratic accountability framework: Campaign Trail Question principle and subsidiarity emphasis

Items Resolved in Rev 4.6¶

[x] APC rate recalibration: Reduced from 13.25% to 12.00%
[x] Clean exit threshold: Expanded from 8x FPL ($120,480) to 10x FPL ($150,600)
[x] Coverage expansion: From ~84% to ~90% of adult population
[x] Baseline payment: Increased from $1,800/year to $2,400/year ($200/month flat, no taper)
[x] Stability_max: Reduced from $5,730/year to $5,130/year to preserve 50% FPL maximum
[x] Minimum payment guarantee: All recipients below clean exit receive at least $200/month
[x] APC phase-in rates: Adjusted to 6% -> 9% -> 12% (from 7% -> 10% -> 13.25%)
[x] Surplus allocation: ~$130B federal surplus for bridge payback (~$67B/year) plus buffer contributions
[x] Bridge payback timeline: 6-8 years (updated from 5-8 years)

Items Resolved in Rev 4.3¶

[x] Income measurement basis: APSP uses Adjusted Gross Income (AGI) as defined under the Internal Revenue Code
[x] Clarified that APSP inherits existing federal income definitions rather than creating independent inclusion/exclusion rules
[x] Edge cases (child support, municipal bond interest, etc.) resolved by reference to existing tax code treatment
[x] Added formal "Income" definition to Appendix A

Items Resolved in Rev 4.2¶

[x] Mid-year income adjustment mechanics: Annual calculation based on prior-year AGI; no mid-year adjustments
[x] Design principle established: APSP is a "slow and steady" program providing a stable floor recalculated once per year
[x] Acute income volatility (job loss, disability onset, etc.) addressed by categorical programs (UI, SSDI, etc.), not APSP
[x] Benefits of annual-only approach: No overpayments, no clawbacks, no verification bureaucracy, no gaming opportunities
[x] Messaging framework: "Your APSP is based on last year's income. If circumstances change dramatically, programs like UI help bridge the gap. Next year, your APSP adjusts to reflect your new reality."

Items Resolved in Rev 4.1¶

[x] No special exclusions for politically sympathetic AGI components (SS, SSDI, VA, UI, etc.)
[x] No transition-period exclusions for any AGI component
[x] Targeted permanent disregard for SSI and TANF (cliff-effect programs)
[x] No disregard needed for SNAP, Medicaid, Section 8 (gradual-adjustment programs)
[x] Clarified distinction between AGI counting (for APSP) and benefit disregard (for legacy cliff programs only)

Items Resolved in Rev 4.0¶

[x] Bridge Period funding mechanism: Three-component hybrid (40% deficit, 30% bridge taxes, 30% APC pre-collection)
[x] Bridge tax structure: Income surtax (2% > $100K), high-income add-on (1% > $500K), corporate surtax (4% > $1M)
[x] Bridge Period end certification: Two quarters self-funding + Stability Buffer at minimum
[x] Statutory payback requirement: Mandatory from APC surplus
[x] Rapid deployment framework: Benefits accrue from day 1; held in trust until delivered
[x] Enrollment targets: 90/120/180 days/12 months by population segment
[x] SSA coordination: Statutory mandate; data sharing for non-filer identification
[x] Workforce assessment: 180-day initial; GAO review; biennial reassessment; steady-state sunset
[x] Asset attestation mechanism: 1040 checkbox for filers; Simple Form for non-filers
[x] True per-person asset evaluation: Individual assets + proportional share of joint assets at FMV
[x] Benefit integrity: No suspension pending investigation; reclamation for knowing violations only
[x] Reclamation limits: 36 months max; cannot reduce payments below 75%
[x] Good-faith safe harbor: 90-day correction window
[x] Outreach accountability: Annual reporting; 80% remediation trigger
[x] AEPA consolidation: Functions absorbed into APSA (Section 10) and APNA; AEPA superseded

Remaining Items: General¶

APC exemption boundary cases around essential utilities and medical goods
Small business simplified APC filing thresholds and compliance pathways
~~APSP interaction with child support and family law systems~~ RESOLVED in Rev 4.3 by AGI anchoring -- child support treatment follows existing IRC rules
State-level revenue harmonization and sales tax phase-out alignment
Interstate mobility and residency timeline considerations
~~Interaction with existing programs:~~ RESOLVED in Rev 4.1
- ~~Social Security, SSDI, Veterans' Benefits, UI~~ All AGI components count for APSP calculation
- ~~SSI~~ Permanent disregard (cliff-effect program)
- ~~TANF~~ Permanent disregard (cliff-effect program)
- ~~SNAP, Medicaid, Section 8~~ No disregard needed (gradual-adjustment programs)
~~Real-time income changes and mid-year adjustment mechanics~~ RESOLVED in Rev 4.2
- ~~Mid-year adjustments~~ Annual calculation only; prior-year AGI determines current-year APSP
- ~~Acute volatility response~~ Addressed by categorical programs (UI, SSDI, etc.), not APSP

Items Requiring Formal Validation¶

CBO or PolicyEngine scoring of cost estimates and behavioral responses
Consumption function validation against Consumer Expenditure Survey data
APC taxable base confirmation based on precise exemption definitions
Population eligibility counts accounting for citizenship/residency rules

Topics Addressed by Companion Legislation¶

The following implementation topics are comprehensively addressed by companion acts and do not require further development within APSA:

Payment infrastructure and access: Addressed by APNA
Minor accounts and vulnerable populations: Addressed by APNA Section 4A
Digital payment systems and unbanked access: Addressed by APNA
Children's economic support: Addressed by SOCA

Note: The American Economic Participation Act (AEPA) has been superseded as of Rev 4.0. Enrollment and filing functions previously contemplated in AEPA are now addressed in APSA Section 10 (Rapid Deployment and Enrollment) and through IRS/SSA coordination.

Revision History¶

Revision 4.8 (Current) - Renamed file from APSA-Rev-4-7-American-Prosperity-and-Stability-Act.md to legislative-text.md per APAI Document Production Standards Rev 1.6 Section 1.1 (published filenames use standardized names with no acronyms or version numbers) - No changes to policy substance, benefit amounts, or formula mechanics

Revision 4.7 - Aligned document structure to APAI Document Production Standards Rev 1.4 - Removed embedded Executive Summary from legislative text (now a separate supporting document) - Moved Revision History from top of document to end per Section 1.3 - Removed "Prepared by" block and "Document Status" line from header per Section 2.2 - Fixed character encoding issues (mojibake arrows and section symbol replaced with ASCII-safe equivalents) - No changes to policy substance, benefit amounts, or formula mechanics

Revision 4.6 - Comprehensive recalibration of APC rate and APSP benefit parameters to eliminate excess surplus identified in Rev 4.5 - Reduced APC rate from 13.25% to 12.00% - Eliminates ~$281B excess surplus created by 80/20 federal/state split - Positions rate below European VAT levels for cleaner political messaging - Revenue at 12%: ~$1.56T (federal ~$1.25T, state ~$312B) - Expanded Clean Exit Threshold from 8x FPL ($120,480) to 10x FPL ($150,600) - Expands payment coverage from ~84% to ~90% of adult population - Creates broader political constituency invested in program success - Increased Baseline Payment from $1,800/year ($150/mo) to $2,400/year ($200/mo) - Reduced Stability_max from $5,730/year ($478/mo) to $5,130/year ($428/mo) - Preserves maximum benefit anchor at $7,530 (50% FPL) for zero-income recipients - Updated Appendix A definitions, Appendix B formulas and projections, Appendix C resolved items - Rationale: Redirect excess surplus toward expanded coverage, increased baseline, and reduced APC burden

Revision 4.5 - Comprehensive revision of Section 6: Federal-State Revenue Sharing - Updated federal/state revenue split from 74/26 to 80/20 - Simplified distribution formula to pure population share - Removed "sales tax replacement" framing; states retain full discretion - Added transparency and public accountability framework with enforcement ladder - Added Democratic Accountability framework and Cross-Partisan Appeal framing - Rationale: Pure population share is defensible, uncontestable, and politically neutral

Revision 4.4 - Removed the Contributor Report provision from the Act - Rationale: Individual APC contributions cannot be accurately attributed at the person level - Updated Clean Exit Threshold and Contributor Report definitions in Appendix A

Revision 4.3 - Clarified income measurement basis: APSP eligibility determined by AGI as defined under the IRC - Replaced "income is income regardless of source" framing with explicit AGI anchoring - Added formal "Income" definition to Appendix A - Rationale: Anchoring to AGI eliminates edge case confusion and inherits existing tax infrastructure

Revision 4.2 - Resolved mid-year income adjustment mechanics: annual calculation based on prior-year AGI with no mid-year adjustments - Rationale: Annual calculation eliminates overpayments, clawbacks, verification bureaucracy, and gaming opportunities

Revision 4.1 - Clarified that all AGI components count for APSP eligibility - Established targeted permanent disregard for SSI and TANF only - No disregard for SNAP, Medicaid, Section 8, LIHEAP (gradual-adjustment programs) - Rationale: Prevent day-one losers among most vulnerable while maintaining consistency

Revision 4.0 - Major structural revision adding Bridge Period Funding and Rapid Deployment frameworks - Added Section 4 (Bridge Period Funding) and Section 10 (Rapid Deployment and Enrollment) - Consolidated AEPA functions into APSA; AEPA superseded as standalone act - Renumbered all sections to accommodate new content - Rationale: Complete the ASPC framework with operational mechanisms for program launch

Revision 3.1 - Corrected economic precarity framing to use accurate Federal Reserve data - No changes to policy substance, benefit amounts, or formula mechanics

Revision 3.0 - Renamed Act from "American Prosperity Dividend Act (APDA)" to "American Prosperity and Stability Act (APSA)" - Renamed payment from "American Prosperity Dividend (APD)" to "American Prosperity Stability Payment (APSP)" - Replaced "Sea and Wave" metaphor with "baseline payment" and "income-adjusted stability payment" - Rationale: "Stability Payment" accurately describes the program's purpose without inviting ideological debates

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Prepared by Albert Ramos for The American Policy Architecture Institute