# Understanding the Flat Tax Bill

This bill proposes to replace the current U.S. income tax system with a flat tax, meaning everyone would pay the same percentage of their income in federal taxes regardless of how much money they make. Right now, the tax system is "progressive," which means higher earners pay a higher percentage in taxes. Under a flat tax, if the rate were set at, say, 15%, a person making $30,000 would pay 15% of that income, and a person making $300,000 would also pay 15% of their income.

The main appeal of a flat tax is simplicity. Supporters argue it would make tax filing easier since there would be fewer brackets, deductions, and complicated rules to navigate. People could potentially file their taxes on a postcard-sized form. The bill also aims to reduce the administrative burden on the IRS and eliminate what some see as unfair advantages that wealthier people get through complex tax strategies and loopholes.

However, a flat tax would significantly change who pays how much in taxes. People with lower incomes would likely pay more in taxes than they do now, since the current system taxes them at lower rates. Wealthier individuals would typically pay less, since they currently pay higher percentages. This would affect government revenue and could influence funding for programs like Social Security, Medicare, education, and infrastructure. The bill's specific details—like what the actual flat tax rate would be, which deductions would remain, and how it would handle different types of income—would determine exactly how it impacts individual Americans and the economy.

To amend the Internal Revenue Code to establish a flat tax, and for other purposes.

Gohmert, Louie

This bill imposes a 15% flat tax on the taxable income of each individual taxpayer. It defines taxable income as the excess of the sum of wages, taxable retirement distributions, plus unemployment compensation, over the standard deduction. The bill also imposes a 15% flat tax on business taxable income and on noncash compensation provided to employees not engaged in business activity. The bill repeals various existing tax provisions, including the alternative minimum tax, certain tax credits, and estate and gift taxes.