The Roadmap for America's Future Act of 2010, proposed by Rep. Paul Ryan (R-WI), would drastically alter the current tax system, allowing taxpayers to choose between paying taxes under the current tax system or under an alternative simplified tax system. The alternative system would eliminate current exclusions, exemptions, credits, and deductions, exempt investment income, and apply a two-tier tax rate. It would also abolish the estate tax for taxpayers electing the alternative tax, eliminate the Alternative Minimum Tax (AMT) for everyone, replace the current tax exclusions for employer-provided heath insurance with a tax credit, and replace the corporate income tax with an 8.5 percent business consumption tax.
The Tax Policy Center has analyzed both the ten-year revenue effects and the distributional impact of the proposal. Separate distributional tables show the plan's effects, measured against to both current law and current policy and whether taxpayers all opt for the alternative system or choose the tax system that minimizes their tax liability.
Click here for a discussion of the plan and TPC's assumptions.