The Taxpayer Choice Act (/) was a proposed bill

Bill (proposed law)

A bill is a proposed law under consideration by a legislature. A bill does not become law until it is passed by the legislature and, in most cases, approved by the executive. Once a bill has been enacted into law, it is called an act or a statute....

 in the United States Congress

United States Congress

The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....

 which, if enacted, would have amended the Internal Revenue Code

Internal Revenue Code

The Internal Revenue Code is the domestic portion of Federal statutory tax law in the United States, published in various volumes of the United States Statutes at Large, and separately as Title 26 of the United States Code...

 to eliminate the alternative minimum tax

Alternative Minimum Tax

The Alternative Minimum Tax is an income tax imposed by the United States federal government on individuals, corporations, estates, and trusts. AMT is imposed at a nearly flat rate on an adjusted amount of taxable income above a certain threshold . This exemption is substantially higher than the...

 on individual taxpayers. The bill was reproposed in 2009. The bill was not voted upon in either session. The legislation would create an alternative, simplified tax that individuals may choose over the current personal income tax

Income tax in the United States

In the United States, a tax is imposed on income by the Federal, most states, and many local governments. The income tax is determined by applying a tax rate, which may increase as income increases, to taxable income as defined. Individuals and corporations are directly taxable, and estates and...

. The new system would have two tax rates (up to $100K at 10% and 25% for everything above), a large standard deduction

Standard deduction

The standard deduction, as defined under United States tax law, is a dollar amount that non-itemizers may subtract from their income and is based upon filing status. It is available to US citizens and resident aliens who are individuals, married persons, and heads of household and increases every...

 with no special deductions, and is argued to greatly reduce the damage and complexity caused by the current income tax. The bill would also make permanent the capital gains and dividends rate reductions enacted by the Jobs and Growth Tax Relief Reconciliation Act. In the House, the bill was introduced by Rep. Paul Ryan

Paul Ryan (politician)

Paul Davis Ryan is the U.S. Representative for , serving since 1999. He is a member of the Republican Party and has been ranked among the party's most influential voices on economic policy....

 (R-WI), ranking member on the House Budget Committee, and had 83 cosponsors in 2007 and 22 fellow Republicans in 2009. The bill was introduced in the Senate by Jim Demint

Jim DeMint

James Warren "Jim" DeMint is the junior U.S. Senator from South Carolina, serving since 2005. He is a member of the Republican Party and a leader in the Tea Party movement. He previously served as the U.S. Representative for from 1999 to 2005.-Early life and education:DeMint was born in...

. The plan has been supported by FreedomWorks

FreedomWorks

FreedomWorks is a conservative non-profit organization based in Washington D.C., United States. FreedomWorks trains volunteers, assists in campaigns, and encourages them to mobilize, interacting with both fellow citizens and their political representatives....

, former House Majority Leader Dick Armey

Dick Armey

Richard Keith "Dick" Armey is a former U.S. Representative from Texas's and House Majority Leader . He was one of the engineers of the "Republican Revolution" of the 1990s, in which Republicans were elected to majorities of both houses of Congress for the first time in four decades. Armey was...

, and former 2008 presidential candidate Fred Thompson.

See also

• Alternative Minimum Tax
  Alternative Minimum Tax
  The Alternative Minimum Tax is an income tax imposed by the United States federal government on individuals, corporations, estates, and trusts. AMT is imposed at a nearly flat rate on an adjusted amount of taxable income above a certain threshold . This exemption is substantially higher than the...
  
  
• Income tax in the United States
  Income tax in the United States
  In the United States, a tax is imposed on income by the Federal, most states, and many local governments. The income tax is determined by applying a tax rate, which may increase as income increases, to taxable income as defined. Individuals and corporations are directly taxable, and estates and...
  
  
• Taxation in the United States
  Taxation in the United States
  The United States is a federal republic with autonomous state and local governments. Taxes are imposed in the United States at each of these levels. These include taxes on income, property, sales, imports, payroll, estates and gifts, as well as various fees.Taxes are imposed on net income of...
  
  
• Tax reform
  Tax reform
  Tax reform is the process of changing the way taxes are collected or managed by the government.Tax reformers have different goals. Some seek to reduce the level of taxation of all people by the government. Some seek to make the tax system more progressive or less progressive. Some seek to simplify...
  
  

External links

• Taxpayer Choice Act of 2007 - Text of House bill H.R.1366
• Taxpayer Choice Act of 2007 - Text of Senate bill S.3818