Progressive Consumption Tax Act of 2016
This bill amends the Internal Revenue Code to impose a consumption tax of 10% of the taxable amount of domestic goods and services. It exempts from such tax certain goods and services exported or used outside the United States.
It also lowers individual and corporate income tax rates. The bill repeals specified income tax credits and deductions, except for the deductions for mortgage interest, charitable contributions, state and local income taxes, gambling losses, alimony payments, and investment interest.
The bill: (1) provides for a family allowance of up to $100,000 for married individuals filing a joint tax return, (2) allows a rebate for U.S. taxpayers consisting of an earned income amount and a child benefit amount, and (3) provides for a refund of excess consumption tax revenue (net consumption tax revenues that exceed 10% of gross domestic product in a calendar year) to individual taxpayers.
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