May 24 2005
Senator Shelby said, “Now more than ever, we have an opportunity to fundamentally reform our tax code. President Bush has acknowledged that tax reform is one of his top priorities. Earlier this year, he created an Advisory Panel on Federal Tax Reform, whose charge is to advise the Secretary of the Treasury on options to reform the tax code to make it simpler, fairer, and more pro-growth. I believe S. 1099 achieves these goals.”
“S.1099 would repeal the current Internal Revenue Code and replace it with a single tax rate for all taxpayers – seventeen percent when the tax is fully implemented. The legislation would also eliminate the many marginal rates, all itemized deductions and credits, the alternative minimum tax, and the taxation of Social Security benefits. In place of itemized deductions, each taxpayer would be given a generous standard deduction of $12,790, or $25,580 in the case of a couple filing jointly. Taxpayers would receive an additional $5,510 standard deduction for each dependant. Therefore, a family of four would need to make over $36,600 before they would pay a single penny of taxes. I believe my flat tax legislation provides for a fairer system, while still protecting those who are most in need.”
“Today our tax code and its regulations total more than 60,000 pages which are complex, confusing and costly to comply with. Were a flat tax in place now, taxpayers would file a return the size of a postcard, and every American would be taxed equally and at the same rate. Rather than spending hours poring over convoluted IRS forms, or resorting to professional tax assistance, the flat tax allows taxpayers to determine their taxes quickly and easily. Everyone will fill out the same simple return, everyone will be taxed at the same rate, and everyone will pay their fare share,” Shelby concluded.
S. 1099, which was numbered to reflect one of the many forms that taxpayers are required to complete, will be referred to the Senate Finance Committee for consideration.