Academic journal article Journal of Accountancy

Kemp Commission Supports Flat Tax Rate but Offers No Details

Academic journal article Journal of Accountancy

Kemp Commission Supports Flat Tax Rate but Offers No Details

Article excerpt

The National Commission on Economic Growth and Tax Reform, headed by former secretary of housing and urban development Jack Kemp came out in support of a single tax rate coupled with generous personal exemptions. But the commission did not specify a tax rate or the possible levels of standard exemptions. Instead, the 24-page report, Unleashing America's Potential: A pro-growth, pro-family tax system fir the 21st century, served as an executive summary that placed as much emphasis on the faults of the current tax system as it did on the recommendations of the 14-member committee appointed by Senate majority leader Bob Dole (R-Kans.) and House speaker Newt Gingrich (R-Ga.).

"The Kemp commission report did not support any of the current tax reform proposals, and it said very little about ending deductions," said Gillian M. Spooner, partner at KPMG Peat Marwick in Washington, D.C. "There are some recommendations, but the report is mostly conceptual"

The core recommendations of the Kemp commission's report included

* Adopting a single, low tax rate with a generous personal exemption.

* Lowering the tax burden on America's working families and removing it altogether from those least able to pay.

* Ending biases against work, saving and investment.

* Allowing full deductibility of the payroll tax for working men and women.

* Requiring a two-thirds super-majority vote in Congress to increase tax rates. …

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