Flat Tax Resurfaces | AccountingWEB

Flat Tax Resurfaces

Representative John Linder (R-GA) and Representative Collin Peterson (D-MN) have introduced legislation which they feel will "level the playing field for average Americans."

The legislation, H.R. 2525, is called the FairTax Act, and was first introduced without success in 1999. The bill currently awaits consideration by the House Ways and Means Committee.

The FairTax Act would institute a flat rate consumption tax, replacing the current income tax as well as the payroll tax. "The FairTax is the only current tax reform proposal that completely untaxes the poor and allows wage earners to keep 100 percent of their paychecks," according to Rep. Linder.

The FairTax Act is supported by Americans for Fair Taxation, a Houston-based nonprofit, nonpartisan tax reform organization.

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