Fair Flat Tax Act of 2006

Bill: 109-hr-5176
Sponsor: Rep. Emanuel, Rahm [D-IL-5]
Introduced: 2006-04-25 in the House
Policy area: Taxation
Subjects: Accounting
Administrative procedure
Agriculture and Food
Alcohol tax
Americans in foreign countries
Architecture and the disabled
Awards, medals, prizes
Bankruptcy
Brokers
Charitable contributions
Clergy
College costs
Commemorations
Commerce
Congressional reporting requirements
Contracts
Corporate finance
Corporation taxes
Cost of living adjustments
Costs
Crime and Law Enforcement
Damages
Department of the Treasury
Depletion allowances
Depreciation and amortization
Disabled
Economics and Public Finance
Education
Elementary and secondary education
Employee benefit plans
Energy
Families
Finance and Financial Sector
Fines (Penalties)
Flat-rate tax
Flexible benefit plans
Foreign Trade and International Finance
Foreign corporations
Fraud
Fringe benefits
Gambling
Geothermal resources
Government Operations and Politics
Government paperwork
Government procurement
Health
Higher education
Housing and Community Development
Income tax
Indexing (Economic policy)
Individual retirement accounts
Information disclosure (Securities law)
Interest
Inventories
Labor and Employment
Law
Leases
Life insurance
Losses
Medical economics
Minimum tax
Mortgages
Nuclear facilities
Oil well drilling
Pension funds
Petroleum
Petroleum engineering
Petroleum industry
Private aviation
Profit
Prospecting
Relocation
Rent
Secondary recovery of oil
Securities
Small business
Sports and Recreation
Sunset legislation
Tax consultants
Tax credits
Tax deductions
Tax deferral
Tax evasion
Tax exclusion
Tax exemption
Tax expenditures
Tax incentives
Tax penalties
Tax preferences
Tax rates
Tax refunds
Tax returns
Tax shelters
Tax-exempt organizations
Taxation of foreign income
Teachers
Teaching materials
Tobacco tax
Transportation and Public Works
Travel costs
Trusts and trustees
Tuition tax credits
Unemployment insurance
Valuation
Waste in government spending
Withholding tax
Workers' compensation

Summary:
action_date: 2006-04-25
text: 
Fair Flat Tax Act of 2006 - Amends the Internal Revenue Code to revise the individual income tax system by: (1) reducing the number of individual income tax brackets to three (15, 25 & 35%); (2) repealing after 2005 the tax rate reductions for capital gains and dividend income; (3) repealing various tax credits, deductions, exclusions and preferences; (4) increasing the basic standard tax deduction; (5) allowing families with dependent children a standard tax credit amount based on family size or modified adjusted gross income; (6) allowing a tax credit for higher education expenses; (7) allowing non-itemizing taxpayers a tax deduction for home mortgage interest and for contributions to tax-exempt universal pension accounts; (8) allowing certain small employers a tax credit for costs associated with universal pension accounts; and (9) repealing the alternative minimum tax for individual taxpayers. 
 
Imposes a flat tax of 35% on corporate taxable income. Limits tax write-offs for use of corporate aircraft and employee personal use of noncommercial aircraft. Requires governmental agencies to withhold 3% of payments made for goods and services.
 
Imposes penalties for promoting abusive tax shelters and for aiding and abetting the understatement of tax liability. Increases tax penalties for fraud and failure to file tax returns. Defines &quot;economic substance&quot; for purposes of evaluating tax shelter transactions. 
 
Eliminates amortization of geological and geophysical expenditures for integrated oil companies. Requires such oil companies to adjust the value of LIFO inventories of crude oil, natural gas, and other petroleum products. 
 
Requires an inflation adjustment to the excise tax on distilled spirits, beer, wine, and tobacco.
 
Terminates this Act after 2010.


Legislative actions:
action_date: 2006-04-25
text: Referred to the House Committee on Ways and Means.
action_date: 2006-04-25
text: Introduced in House
action_date: 2006-04-25
text: Introduced in House