arrow_back Back to App

Flat Tax Act: New Income and Business Taxation Rules

This act introduces an optional new tax system, replacing current income taxes for individuals and businesses. It simplifies tax filings for many citizens and entrepreneurs but requires foregoing existing tax credits. Additionally, the act repeals estate and gift taxes, which may impact wealth planning.
Key points
Option to choose a flat income tax rate (19% for the first 2 years, then 17%) for individuals and businesses, replacing the current system.
Repeal of estate and gift taxes, meaning inherited assets and received gifts will not be taxed.
Introduction of a high standard deduction for individuals, adjusted annually for inflation.
No access to other tax credits once the new system is chosen.
A two-thirds supermajority vote in Congress required to increase flat tax rates or reduce deductions, making future changes more difficult.
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 117_HR_1040
Sponsor: Rep. Burgess, Michael C. [R-TX-26]
Process start date: 2021-02-15
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

Flat Tax Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_1040.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-02-15.

What are the main provisions?

Key points include:

  • Option to choose a flat income tax rate (19% for the first 2 years, then 17%) for individuals and businesses, replacing the current system.
  • Repeal of estate and gift taxes, meaning inherited assets and received gifts will not be taxed.
  • Introduction of a high standard deduction for individuals, adjusted annually for inflation.
  • No access to other tax credits once the new system is chosen.
  • A two-thirds supermajority vote in Congress required to increase flat tax rates or reduce deductions, making future changes more difficult.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Burgess, Michael C. [R-TX-26].

What is the latest detailed status?

The latest detailed status is: Executive Comment Requested from Federal Judicial Center, Graduate Fellows Program, Harry S Truman Scholarship.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-27.

CATEGORIES

Taxes Economy