A bill to amend the Internal Revenue Code of 1986 to impose a flat tax only on the earned income of individuals and the business taxable income of corporations, and for other purposes.

Summary

Amends the Internal Revenue Code to impose a 20 percent tax on the taxable earned income of every individual. Bases such amount on the standard deduction. (Replaces current income tax procedures for individuals.) Increases the basic standard deduction and includes an additional standard deduction (limited to dependents only), with inflation adjustments. Limits charitable contributions to $2,500 ($1,250 in the case of married individuals filing separately). Limits the deduction for interest paid on a home mortgage to the amount of acquisition indebtedness, with limitations. Replaces the current tax on corporations with a tax on every person engaged in a business activity equal to 20 percent of the business taxable income of such person. Makes the person engaged in the business activity liable for the tax.

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Documents

3 official files

• Introduced in Senate (text)

  Introduced in Senate · EN · 2 March 1995

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• Introduced in Senate (PDF)

  Introduced in Senate · EN · 2 March 1995

  ViewDownloadOpen at official source

• Introduced in Senate

  summary · EN · 2 March 1995

  Open at official source

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