Jun 14 2001
U.S. Senator Richard Shelby (R-AL) today introduced S. 1040, the "Freedom and Fairness Restoration Act of 2001," legislation that will repeal the current Internal Revenue Code and replace it with a flat tax rate that would apply to all taxpayers.
The legislation would eliminate the many marginal rates, all itemized deductions and credits, the alternative minimum tax, and the taxation of Social Security benefits. With the flat tax, all American taxpayers would be taxed on wages, salaries and pensions at the same rate, 17% when the tax is fully implemented. In place of itemized deductions, each taxpayer would be given a standard deduction of $11,000, or $22,000 in the case of a couple filing jointly. Taxpayers would receive an additional $5000 standard deduction for each dependant. Therefore, a family of four would need to make over $32,000 before they would pay a single penny of taxes.
"Under a flat tax, taxpayers will file a simple postcard size return," said Shelby. "Every American would be treated equally and taxed at the same rate. Taxpayers would no longer be required to wade through stacks of complicated IRS forms or be forced to hire accountants and attorneys to comply with our tax laws. The flat tax would decrease the cost of compliance to the government, and would save taxpayers time and money."