1. Short title This Act may be cited as the Flat Tax Act . 2. The flat tax (a) In general Subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after part VII the following new part: VIII The flat tax Sec. 60. Irrevocable election to be subject to flat tax. Sec. 60A. Tax imposed on individuals. Sec. 60B. Tax imposed on business activities. Sec. 60C. Tax on noncash compensation provided to employees not engaged in business activity. 60. Irrevocable election to be subject to flat tax (a) Individual (1) In general Except as provided in paragraph (2), in lieu of the tax imposed by sections 1 (relating to tax imposed) and 55 (relating to alternative minimum tax imposed), under regulations prescribed by the Secretary, an individual may make an irrevocable election to be subject to the tax imposed by this part. (2) Innocent spouse exception An individual who has made an election under paragraph (1) and who subsequently obtains relief of liability for tax under section 6015(b) may, not later than 1 year after the date such relief is granted, revoke the election made under paragraph (1). (b) Person engaged in business activity In lieu of the tax imposed by sections 11 (relating to tax imposed) and 55 (relating to alternative minimum tax imposed), under regulations prescribed by the Secretary, a person engaged in business activity may make an irrevocable election to be subject to the tax imposed by this part. (c) Disallowance of Credits No credit shall be allowed under this chapter for any taxable year to any person with respect to whom an election under subsection (a) or (b) is in effect. 60A. Tax imposed on individuals (a) In general There is hereby imposed on the taxable income of every individual who makes an election to be subject to this part a tax equal to— (1) 19 percent of the taxable income of such individual for such taxable year in the case of the first 2 taxable years of the individual beginning with the taxable year for which the election is made, and (2) 17 percent of the