Flat Tax bill

Amends the Internal Revenue Code to impose a 20 percent tax on the taxable earned income of every individual. Bases such amount on the standard, charitable gifts, and residence interest deductions. (Replaces current income tax procedures for individuals.)

Increases the basic standard deduction and includes an additional standard deduction (limited to dependents only), with inflation adjustments.

Limits the deduction for interest paid on a home mortgage to the amount of acquisition indebtedness, with limitations.

Replaces the current tax on corporations with a tax on every person engaged in a business activity equal to 20 percent of the business taxable income of such person. Makes the person engaged in the business activity liable for the tax.