WASHINGTON, DC – Tuesday, April 14, 2015 – U.S. Senator Richard Shelby (R-Ala.) introduced S.929 on the eve of Tax Day to establish a flat tax on all income, known as the “Simplified, Manageable, and Responsible Tax (SMART) Act.” Since his first election to the Senate in 1986, Senator Shelby has been an advocate of the flat tax, introducing similar legislation each Congress.
“On Tax Day, the American people are reminded that our nation’s tax code is unnecessarily complex, confusing, and inefficient. The SMART Act is a straightforward solution that would require taxpayers to only file a simple postcard size return, which would save Americans time and money. The SMART Act would also allow businesses to redirect resources away from tax compliance and instead focus on expanding their businesses and creating jobs.”
The SMART Act establishes a flat income tax of 17 percent on all income. The only exemptions would be personal exemptions of:
• $14,480 for a single person;
• $18,490 for a head of household;
• $28,960 for a married couple filing jointly; and
• $6,240 for each dependent
These allowances would also be indexed to the consumer price index in order to prevent inflation from raising our tax burden. To prevent the double-taxation of income, earnings from savings would not be included as taxable income, resulting in an immediate tax cut for virtually all taxpayers.
By closing loopholes for individuals and businesses, the SMART Act would create broad-based lower tax rates that would give American individuals and businesses a competitive edge, create and retain jobs in the United States, and curb offshoring.