Shelby Proposes Flat Tax

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Sen. Richard Shelby of Alabama introduced legislation Tuesday to repeal the current federal tax code and implement a flat tax of 17 percent for all taxpayers.

Under his proposal, a family of four making under $36,000 annually would pay no taxes at all.

Single taxpayers would get a standard deduction of $12,790 and married couples would receive a $25,580 deduction.

Each dependent claimed on taxes would be a $5,150 deduction under the Shelby plan.

The Republican said the proposal also would eliminate the double taxation of dividends and make filing taxes as simple as filling out a postcard sized return.