A bill to amend the Internal Revenue Code of 1954 to implement a flat rate tax system.

Amends the Internal Revenue Code to provide for a flat rate of tax of 19 percent on both individual and business income.

Sets forth rules for the computation of individual taxable income and business taxable income. Allows for specified personal allowances in the computation of individual taxable income. Defines a "business" as any sole proprietorship, partnership, or corporation.

Exempts State and local governments and certain charitable organizations from the business tax.

Provides for the withholding of employee income tax.