The Taxpayer Choice Act would repeal of the AMT, saving the taxpayers $840 billion. On top of this vital reform, Ryan's bill creates a simplified optional tax structure: 10 percent on joint earnings up to $100,000 (or $50,000 for single filers) and 25 percent rate on everything above that. It would also make permanent President Bush's capital gains and dividends tax cuts.
Taxpayers who prefer to spend countless hours filling out the mounds of paperwork can still choose to do so (of course, those taxpayers have probably all been institutionalized already).
Sadly, not everyone is on board with Ryan's bill (cosponsored by Reps Hensarling and Campbell). According to Robert Novak:
Nevertheless, Paulson and the Treasury cannot live with it because they are unwilling to give up that $840 billion in extra revenue. Neither can Rep. Jim McCrery, ranking Republican on Ways and Means.
Ryan, Hensarling and Campbell pose a gut check for the Republican Party. Is it willing to part with a rapacious tax without replacing the revenue and offer taxpayers a bold choice? In 1978, the Republican National Committee under Chairman Bill Brock endorsed Kemp-Roth. To take a similar daring step today, the party would have to divorce itself from the Bush administration's tutelage and embark on a course of tax simplification and spending discipline.
Someone should probably tell President Bush that if the Republicans don't start taking "daring steps" they're going to end up taking an embarrassing fall.