Implement a Flat Tax w/ Standard Deduction

Thank you CASmnl1 for posting a well thought out proposal. My bill is the result of dozens of conversation of conservations with people of other views than my own. I have attempted to create a truly multi-partisan bill that ensures effective and positive change while also maintaining political feasibility. Here is the outline of my reformed income tax code. Income Tax Simplification ActA bill to remove tax loopholes, increase fairness in taxation, allow for easier completion of taxes, and encourage economic growth. Preamble The tax code as we know it today is a catastrophe. It includes tens of thousands of pages of complex deductions, special taxes, rules, definitions, and loopholes. This flawed system allows very wealthy people to pay lowers taxes than lower middle income families. It allows those who can afford better tax accountants and tax lawyers to gain the system, while others have to pay a much larger percentage of their income. This is not a fair nor desirable system to have. The complications in the tax code also costs the country billions of dollars a year and discourages economic growth. A simple, easy to understand tax system will be to the benefit of all Americans. We can have a low, flat tax rate with a standard deduction that [keeps the federal budget balanced](https://docs.google.com...). Section 1. Abolition of Current Taxation System (1) All current sections of the individual income tax code are hereby abolished, but for the following exceptions. (2)The home mortgage interest deduction 26 U.S. Code § 163 (https://www.law.cornell.edu...) shall remain intact. (3) The charitable tax deduction 26 U.S. Code § 170 (https://www.law.cornell.edu...) shall remain intact. (4) The student loan interest deduction 26 CFR 1.221-1 (https://www.law.cornell.edu...) shall remain intact. (5) The earned income tax credit 26 U.S. Code § 32 (https://www.law.cornell.edu...) shall remain intact. (6) The child tax credit 26 U.S. Code § 24 (https://www.law.cornell.edu...) shall remain intact. (7) The residential energy credit 26 CFR 1.23-1 (https://www.law.cornell.edu...)shall remain intact. Section 2: The Simplified Tax System (1) There shall be a flat tax rate of 18% on all personal income for households and individuals earning below $1 million annually. (2) Personal income shall be defined as income that is received by persons from all sources. It is calculated as the sum of wage and salary disbursements, supplements to wages and salaries, proprietors' income with inventory valuation and capital consumption adjustments, rental income of persons with capital consumption adjustment, personal dividend income, personal interest income, and personal current transfer receipts, less contributions for government social insurance.(3) Households earning under $1 million annually shall be subject to a standard deduction of 200% the federal poverty threshold for their respective household sizes. (For example, a family of 3 making $60,000 would have a standard deduction of $40,180, and pay an 18% flat rate on the $19,820 adjusted income following said deduction, giving an effective tax rate of 5.95%. Avg. effective tax rates by quintile found here (http://i.imgur.com...)).(4) This standard deduction shall be updated annually to account for changes to the poverty threshold. (5) For households earning above $1 million annually, there shall be a flat and minimum tax of 25% on all personal income. (6) The IRS is responsible for enforcing this reformed tax code.Key BenefitsThe highlights of the bill are as follows: Removes all tax loopholes currently in 65,000 page tax code Allows for easier filing of taxes, saving citizens about $160 billion and 6 billion hours annually. (http://www.huffingtonpost.com...) Implements low 18% maximum income tax for households making less than $1 million 25% flat tax on >$1 million earners Increases progressiveness of current effective tax rates Helps low/middle income families by expanding tax deductions Gives poor families money instead of taxing Maintains a balanced budget With my main talking points laid out, I look forward to hearing your response!