Freedom Flat Tax Act

To amend the Internal Revenue Code of 1986 to provide taxpayers a flat tax alternative to the current income tax system.

2/14/2007--Introduced.
Freedom Flat Tax Act - Amends the Internal Revenue Code to authorize an individual or a person engaged in business activity to make an irrevocable election to be subject to a flat tax (in lieu of the existing tax provisions) of 19% for the first two years after an election is made, and 17% thereafter. Calculates taxable income for individual taxpayers by subtracting a basic standard deduction and an additional standard deduction for each dependent from the total of wages, retirement distributions, and unemployment compensation. Defines "business taxable income" to mean gross active income reduced by the cost of certain business inputs. Imposes an employer tax on the value of excludable compensation provided to employees not engaged in business activity of 19% for the first two years after an election is made under this Act and 17% thereafter. Repeals the estate, gift, and generation-skipping transfer taxes. Requires a two-thirds vote of the House of Representatives or the Senate to increase the flat tax rate proposed by this Act or to reduce the amount of the standard deduction or business-related deductions allowed by this Act.


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Sponsor

• Rep. Michael Burgess [R, TX-26]
• and 8 Co-Sponsors
  • Rep. Rob Bishop [R, UT-1]
  • Rep. Tom Cole [R, OK-4]
  • Thelma Drake
  • Rep. Ralph Hall [R, TX-4]
  • Rep. Michael McCaul [R, TX-10]
  • Rep. Jeff Miller [R, FL-1]
  • Rep. Sue Myrick [R, NC-9]
  • Rep. Zach Wamp [R, TN-3]
  close

Committees

• House Ways and Means
• 1 more
  • House Rules
  close

Amendments

This bill has no amendments.

Amendments to H.R.1040

Number	Status	Purpose

Bill Status

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Introduced		Voted on by House		Voted on by Senate		Considered By President		Bill Becomes Law
February 14, 2007

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All Bill Actions

• Mar 05, 2007: Introductory remarks on measure. (CR H2160-2162)
• Mar 05, 2007: Sponsor introductory remarks on measure. (CR H2160-2162)
• Introduced on Feb 14, 2007.
• Feb 14, 2007: Referred to the Committee on Ways and Means, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• Feb 14, 2007: Referred to House Ways and Means
• Feb 14, 2007: Referred to House Rules

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Related Bills:

• S.2856

Related Issue Areas:

• Taxation
• Annuities
• Business
• Congress
• 26 more
• Congressional voting
• Estate tax
• Families
• Federal employees
• Flat-rate tax
• Gift tax
• Government employees
• Income tax
• Inheritance tax
• Labor
• Legislation
• Legislative amendments
• Legislative resolutions
• Local employees
• Married people
• Minimum tax
• Pensions
• State and local government
• State employees
• Tax administration
• Tax credits
• Tax deductions
• Tax rates
• Tax-exempt organizations
• Unemployment insurance
• Wages

Data from the Congressional Research Service

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In the News

April 15, 2008 A Visit of Faith and Reason

Recall that a few weeks ago I reported to you Congressman Michael Burgess' leadership in the House in introducing an optional flat tax bill (HR 1040) that ...

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Source: Human Events, DC

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Blog Coverage

October 20, 2008 The Daily Tribune Online - News

First and foremost I believe in a flat tax and I am a cosponsor of H.R. 1040, the Freedom Flat Tax Act. This would establish a flat tax in lieu of our present taxation system. I am also concerned that several tax cuts that were enacted ...

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Source: Obituaries from www.dailytribune.net

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August 24, 2008 The Problem With a Flat Tax

Michael Burgess, (R-TX), introduced HR 1040, Freedom Flat Tax, in March 2007. It appears that HR 1040 was never scheduled for debate and was abandoned. But, the flat tax proponents have not given up and it’sa safe bet that another bill ...

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Source: CannonSpeak.com

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August 21, 2008 21st Century Taxation: VAT - Why do we avoid the word in tax ...

For example, the Freedom Flat Tax (H.R. 1040) appears to be the Hall/Rabushka model that was also promoted for years by Congressman Armey. That tax is a modified subtraction method VAT for businesses. The key modification is that ...

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Source: 21st Century Taxation

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