Flat Tax Act of 2005

Summary

Flat Tax Act of 2005 - Replaces the income tax with a flat tax of 20 percent of taxable earned income of individual taxpayers. Defines "taxable earned income" as the excess of earned income (wages, salaries, professional fees) over a standard deduction, a deduction for cash charitable contributions, and a deduction for home mortgage interest. Sets forth definitions and special rules for surviving spouses, heads of household, and dependents. Imposes a flat tax of 20 percent on business taxable income. Defines "business taxable income" as gross active income (other than investment income) reduced by: (1) the cost of business inputs (cost of specified goods, services, travel, and entertainment expenditures); (2) employee compensation; and (3) the cost of personal and real property used in business activities. Disallows a deduction from gross active business income for purchases of goods and services provided to employees or owners and certain lobbying and political expenditures. Repeals: (1) estate, gift, and generation-skipping transfer taxes; (2) financing of presidential election campaigns provisions; and (3) coal industry health benefits provisions.

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Timeline

1. 15 April 2005

   Introduced

   Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S3742-3747)

   Source: IntroReferral

2. 15 April 2005

   Introduced

   Sponsor introductory remarks on measure. (CR S3736-3737)

   Source: IntroReferral

3. 15 April 2005

   Introduced

   Introduced in Senate

   Source: IntroReferral

Votes

No vote records are attached yet.

Versions

• Introduced in Senate · 15 April 2005 · Official file

Documents

3 official files

• Introduced in Senate (text)

  Introduced in Senate · EN · 15 April 2005

  ViewDownloadOpen at official source

• Introduced in Senate (PDF)

  Introduced in Senate · EN · 15 April 2005

  ViewDownloadOpen at official source

• Introduced in Senate

  summary · EN · 15 April 2005

  Open at official source

Sponsors

• Sen. Specter, Arlen [R-PA] · R · Sponsor
• · ssfi00 · Standing

Related records

• related to → Freedom Flat Tax Act
• related to → Fair Flat Tax Act of 2006
• related to ← Tax Simplification Act of 2005
• related to ← Fair Flat Tax Act of 2005