With Monday being Tax Day, Senator Richard Shelby (R-AL) continued his longtime advocacy for a national flat tax, re-introducing a bill in Congress known as the “Simplified, Manageable, and Responsible Tax (SMART) Act.”
Shelby has introduced the SMART Act in each congressional session since his election to the U.S. Senate in 1986, strongly pushing for a flat tax on all income.
“Every year, Tax Day is a reminder to the American people that our nation’s tax code is complex, confusing, and costly,” Shelby said in a statement. “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 percent on all income.
The only exception would be the following personal exemptions:
$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.
The above allowances would also be adjusted to the consumer price index in order to prevent inflation from raising the 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.
Additionally, 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.
Shelby has previously advised, “The SMART Act would also allow businesses to redirect resources away from tax compliance and instead focus on expanding their businesses and creating jobs.”
Sean Ross is a staff writer for Yellowhammer News. You can follow him on Twitter @sean_yhn
