Shelby Introduces Legislation to Establish Flat Tax
WASHINGTON, DC – U.S. Senator Richard Shelby (R-Ala.) has re-introduced legislation to establish a flat tax on all income, known as the “Simplified, Manageable, and Responsible Tax (SMART) Act.” Since his election to the Senate in 1986, Senator Shelby has been a strong advocate for the flat tax, introducing legislation supporting it each Congress.
“Every year, Tax Day is a reminder to the American people that our nation’s tax code is complex, confusing, and costly,” said Senator Shelby. “The recent success of the Tax Cuts and Jobs Act is certainly progress, but if the SMART Act was 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. I believe this legislation would result in an immediate tax cut for virtually all taxpayers, while also reducing the size, scope, and complexity of the IRS.”
The SMART Act establishes a flat income tax of 17% on all income. The only exception would be personal exemptions of:
- $14,480 for a single person;
- $18,490 for a head of a household;
- $28,960 for a married couple filing jointly; and
- $6,250 for each dependent.
These allowances would also be adjusted 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 hardworking 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.