Flat-Rate Tax Proposals (CRS Report for Congress)
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| Release Date |
June 21, 1982 |
| Report Number |
IP0212F |
| Source Agency |
Congressional Research Service |
Summary:
In recent months there has been a growing congressional interest in the advantages and disadvantages of revamping our current tax system for a flat-rate tax method. Supporters of the new proposal argue that such a plan would promote productivity, simplify present IRS tax forms, save the public billions of dollars that presently go to tax-preparation professionals, and enhance Federal revenue by closing numerous tax loopholes and special deductions that are now enjoyed by relatively few. Opponents believe, however, that the tax burden under a flat-rate plan might fall more heavily upon the middle class and, unless exceptions were made, would hurt educational institutions and charities. Problems with popular tax deductions, such as home mortgage interest, would have to be addressed. This packet provides background materials which discuss the practical and theoretical issues that surround a flat-rate tax, including the probable redistribution of the tax burden under various rates and income bases. Additional information on this subject, primarily in periodicals and newspapers, may be found in a local library through the use of indexes such as the Readers' Guide to Periodical Literature, the Public Affairs Information Service Bulletin (PAIS), and the New York Times Index. Congressional Quarterly Weekly Report and the Commerce Clearing House Congressional Index are commercial publications which track the status of current legislation and are available in larger libraries.
