Specter Introduces 'Flat Tax' Bill
Washington, D.C. —Senator Arlen Specter (R-Pa.) today introduced legislation that would scrap the 17,000 pages of current IRS code in favor of a 20 percent flat tax for all individuals and businesses. The revenue-neutral legislation would allow tax-payers to file returns on a postcard that could be completed in 15 minutes.
“My flat tax legislation would make filing a tax return a manageable chore, not a seemingly endless nightmare, for most taxpayers,” Senator Specter said. “This legislation will fundamentally revise the present tax code, with its myriad rates, deductions, and instructions.”
The 20% flat tax plan would eliminate taxes on estates, dividends and capital gains, but would maintain two important deductions: those on mortgage interest and charitable contributions. Tax returns would be filed on a 10-line postcard tax form that requires information related to wages, personal allowance, number of dependents, and total taxable compensation. In contrast to those who file 1040 forms, for which the IRS estimates takes an average of approximately 34 hours to complete, the flat tax form could be completed in fifteen minutes.
The key advantages of this flat tax plan are three-fold: First, it will dramatically simplify the payment of taxes. Second, it will remove much of the IRS regulatory morass now imposed on individual and corporate taxpayers, and allow those taxpayers to devote more of their energies to productive pursuits. Third, since it is a plan which rewards savings and investment, the flat tax will spur economic growth in all sectors of the economy as more money flows into investments and savings accounts.
In 1995, Senator Specter’s proposal became the first flat-tax bill introduced in the Senate, and he has consistently sponsored the legislation since. On May 14, 2003, Senator Specter successfully offered an amendment to the Tax Reconciliation legislation for the Senate to hold hearings and consider legislation providing for a flat tax. Senator Specter then testified on the issue at a subsequent hearing held by the Joint Economic Committee on November 5, 2003.
An example of the flat tax return form can be found HERE. (PDF)
“My flat tax legislation would make filing a tax return a manageable chore, not a seemingly endless nightmare, for most taxpayers,” Senator Specter said. “This legislation will fundamentally revise the present tax code, with its myriad rates, deductions, and instructions.”
The 20% flat tax plan would eliminate taxes on estates, dividends and capital gains, but would maintain two important deductions: those on mortgage interest and charitable contributions. Tax returns would be filed on a 10-line postcard tax form that requires information related to wages, personal allowance, number of dependents, and total taxable compensation. In contrast to those who file 1040 forms, for which the IRS estimates takes an average of approximately 34 hours to complete, the flat tax form could be completed in fifteen minutes.
The key advantages of this flat tax plan are three-fold: First, it will dramatically simplify the payment of taxes. Second, it will remove much of the IRS regulatory morass now imposed on individual and corporate taxpayers, and allow those taxpayers to devote more of their energies to productive pursuits. Third, since it is a plan which rewards savings and investment, the flat tax will spur economic growth in all sectors of the economy as more money flows into investments and savings accounts.
In 1995, Senator Specter’s proposal became the first flat-tax bill introduced in the Senate, and he has consistently sponsored the legislation since. On May 14, 2003, Senator Specter successfully offered an amendment to the Tax Reconciliation legislation for the Senate to hold hearings and consider legislation providing for a flat tax. Senator Specter then testified on the issue at a subsequent hearing held by the Joint Economic Committee on November 5, 2003.
An example of the flat tax return form can be found HERE. (PDF)
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