WASHINGTON — U.S. Senator Richard Shelby (R-AL) introduced legislation Tuesday that would establish a flat federal tax on income for the first time since the implementation of the IRS.
The “Simplified, Manageable, and Responsible Tax (SMART) Act,” would tax income at 17 percent, with significant exemptions.
“On Tax Day, the American people are reminded that our nation’s tax code is unnecessarily complex, confusing, and inefficient,” said Sen. Shelby in a press release. “The SMART Act is a straightforward solution that would require taxpayers to only file a simple postcard size return, which would save Americans time and money. The SMART Act would also allow businesses to redirect resources away from tax compliance and instead focus on expanding their businesses and creating jobs.”
The SMART Act would include exemptions of:
• $14,480 for a single person;
• $18,490 for a head of household;
• $28,960 for a married couple filing jointly; and
• $6,240 for each dependent.
These exemptions would be indexed the consumer price index. According to Sen. Shelby, who has introduced similar legislation every Congress since being elected in 1986, the SMART Act would give American individuals and businesses a competitive edge, create and retain jobs in the United States, and curb offshoring.
As chairman of the Senate Banking committee, Sen. Shelby has the clout to guide the SMART Act to a vote.
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— Elizabeth BeShears (@LizEBeesh) January 21, 2015
