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.