Tax Simplification Act of 2003

This bill, introduced in 2003, proposed a fundamental overhaul of the federal tax system by replacing the existing multi-bracket income tax with a single "flat tax" rate. Under this plan, the tax rate for individuals and businesses would have been set at 19%, eventually dropping to 17% after 2004.

For the average citizen, the bill would have significantly simplified the tax-filing process by eliminating nearly all credits, deductions, and the Alternative Minimum Tax (AMT). Instead, taxpayers would only pay the flat rate on income that exceeded a newly increased standard deduction, which included additional amounts for dependents. Furthermore, the bill sought to repeal federal estate and gift taxes while making it more difficult for future Congresses to raise tax rates or create new tax loopholes.