Simplified USA Tax Act of 2006

[AI summary unavailable — showing source text] Simplified USA Tax Act of 2006 - Repeals after 2006 income tax (including the individual and corporate alternative minimum tax) and estate and gift tax provisions of the Internal Revenue Code of 1986. Replaces such provisions with a new tax system, to be known as the Simplified USA Tax. Establishes three income tax brackets at 15, 25 and 30% for individual taxpayers. Redefines "gross income" and allows certain exclusions from gross income, including previously-taxed benefits, tax-exempt bond interest, compensation for injuries and sickness, and gain from the sale of a principal residence. Allows tax deductions for alimony and child support, home mortgage interest, charitable contributions, certain higher education expenses, and contributions to individual retirement accounts. Allows individual taxpayers: (1) a tax credit for social security payroll taxes; and (2) a refundable tax credit based upon family size and income. Revises rules for individual retirement accounts to allow all taxpayers to make contributions to a Roth IRA up to the amount of their adjusted gross income. Allows tax free withdrawals from Roth IRAs for any purpose after five years. Establishes new tax r…