Freedom Flat Tax Act

The Freedom Flat Tax Act proposes a significant change to the federal tax system by allowing individuals and businesses to opt out of the current progressive income tax in favor of a simplified flat tax. Under this voluntary system, taxpayers would pay a fixed rate of 19% for the first two years, which would then decrease to a permanent rate of 17%.

For the average citizen, this bill would eliminate most traditional deductions and credits in exchange for a higher standard deduction based on filing status and the number of dependents. Taxable income would be limited to wages, retirement distributions, and unemployment compensation, while earnings from savings, such as interest and capital gains, would not be taxed at the individual level. Additionally, the bill would repeal federal estate and gift taxes and require a two-thirds "supermajority" vote in Congress to raise the flat tax rate or lower the standard deduction in the future.