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Sen. Alexander hops on the flat tax bandwagon
Posted By katie allison granju
Alexander has issued a press release proposing an “optional” 17% flat tax:
Americans would not pay taxes on their income until it reached a certain level. For a married couple filing jointly, the exemption level would be $25,580. For a single head of household, the exemption level would be $16,330, and for a single person, the exemption level would be $12,790. The exemption for each dependent would be $5,510. All exemptions would be indexed to inflation.
Businesses would be taxed on total revenue minus expenses, which would include wages, pensions, and the cost of new business equipment.
Alexander’s tax proposal would eliminate the marriage penalty and the alternative minimum tax, which burdens millions of middle-class families each year.
Alexander’s proposal is designed to be revenue neutral. It is not designed to raise or lower taxes collected. Instead, it is designed to simplify the tax system and reduce the incredible amounts of money spent each year on compliance with the tax code.
Apr 15th, 2008
