As Richard Shelby finishes up his final term as a U.S. Senator, he is re-introducing tax legislation that he has believed in since 1986.
The flat tax rate has been on his agenda for decades; he’s introduced legislation to support it during each Congress since the 100th Congress.
Shelby introduced the bill in 2017. Called the “Simplified, Manageable, and Responsible Tax (SMART) Act,” the bill establishes a flat tax on all income. The SMART Act establishes a flat income tax of 17 percent on all income. The only exception would be personal exemptions of:
- $14,590 for a single person;
- $18,630 for a head of a household;
- $29,190 for a married couple filing jointly; and
- $6,290 for each dependent.
In a press release, Shelby stated, “Our nation’s current tax code is complex, unclear, and costly to hardworking Americans. Every year on Tax Day, we are reminded of this unfortunate reality. If my legislation, the SMART Act, was in place instead of current law, taxpayers would file a simple, self-explanatory return that’s the size of a postcard. Should Congress pass my bill, every American would be taxed equally and at the same rate.
“The recent success of the Tax Cuts and Jobs Act have helped improve our tax code, but I believe the SMART Act would go a step further, resulting in an immediate tax cut for nearly all taxpayers and reducing the size, scope, and complexity of the IRS – rather than broadening and expanding it as our sitting President would prefer. I urge my colleagues to consider and support this legislation for the good of our nation,” continued Senator Shelby.
Today, I re-introduced the SMART Act to establish a flat tax. Our nation’s current tax code is complex and costly. With my bill, Americans could expect an immediate tax cut for nearly all taxpayers and a reduction in size and scope of the IRS. https://t.co/AUirRsMaeG
— Richard Shelby (@SenShelby) May 17, 2021
