Number: 98-529
Title: Flat Tax: An Overview of the Hall-Rabushka Proposal
Authors: James M. Bickley, Government and Finance Division 
Abstract: This report explains and evaluates the Hall-Rabushka proposal for three reasons. First, although the H-R plan has not been specifically advocated by any Member of Congress, it nevertheless has been associated with bills introduced in the in the past Congresses. Furthermore, in the 110th Congress, Representative Michael Burgess's proposal (H.R. 1040) would allow taxpayers to select a flat tax (based on the concepts of Hall-Rabushka) as an alternative to the current income tax system. Also, Senator Richard C. Shelby's proposal (S. 1040) and Senator Arlen Specter's proposal (S. 1081) would replace individual and corporate income taxes and estate and gift taxes with a flat tax based on the Hall-Rabushka concept. Second, the Hall-Rabushka proposal concerns many issues relevant to other tax reform proposals. Third, unlike a number of other reform plans, the H-R proposal has sufficient detail to permit examination, although numerous aspects of the proposal have yet to be fleshed out.
Pages: 26
Date: February 1, 2008