Apr 18 2007

Sen. Shelby pushes flat tax plan

Associated Press

by Neal Vickers, (WERC) 

WASHINGTON (AP) _ Alabama Senator Richard Shelby used Tax Day to introduce Senate bill 1040. His proposal would change the current income tax system to a flat tax. 

The Tuscaloosa Republican says the current system is not fair. But he also admitted that his bill had almost no chance of being adopted. Shelby said he wanted take advantage of the timing of Tax Day and said he welcomes an open debate on the issue. 

Meanwhile, the House marked Tax Day by approving new protections against some of the modern-day dangers facing taxpayers, including identity theft, deceptive Web sites and loan sharks. 

The Taxpayer Psotection Act, passed 407-to-7, also makes it easier for taxpayers to retrieve property lost as a result of a wrongful Internal Revenue Service levy and directs the I-R-S to notify lower-income people that they qualify for the Earned Income Tax Credit. 

The measure was sent to the Senate.