Burgess Reintroduces HR 1040, The Freedom Flat Tax Act

Press Release

Congressman Michael C. Burgess, M.D. (TX-26) has reintroduced his popular Freedom Flat Tax legislation to fundamentally reform America's tax system. HR 1040 introduces an optional flat-rate tax system.

"Each year Americans spend 6.1 billion hours preparing their tax forms and the IRS has 1,176 forms and instructions listed on their website," said Dr. Burgess. "It's no wonder that even the IRS Commissioner Doug Shulman has said, "I find the tax code complex so I use a preparer.'"

The Freedom Flat Tax Act will phase-in the flat tax over a three-year period, with a 19-percent rate for the first two years and a 17-percent rate in subsequent years. It will have no loopholes, but will allow some personal exemptions like a standard deduction. Unlike other versions of the flat tax, this legislation allows individuals and businesses to choose if and when they will opt into the system. The flat tax restores fairness to the tax code by treating everyone equally.

"The goal of the Freedom Flat Tax is to create a tax system that minimizes the number of market-distorting investment decisions that are made as a result of the current tax system," said Dr. Burgess. "People should base their financial decisions on common-sense economics, not the tax code. HR 1040 is simple, fair and pro-growth."

A benefit of the Freedom Flat Tax is the spur to economic growth, which comes through eliminating the current tax code's bias against savings and investment. Because the flat tax treats all economic activity equally, it will promote greater economic efficiency and increased prosperity. The legislation creates a fair and simple system, which will help boost economic activity.

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