Fair Flat Tax Act of 2006

[AI summary unavailable — showing source text] Fair Flat Tax Act of 2006 - Amends the Internal Revenue Code to revise the individual income tax system by: (1) reducing the number of individual income tax brackets to three (15, 25 & 35%); (2) repealing after 2005 the tax rate reductions for capital gains and dividend income; (3) repealing various tax credits, deductions, exclusions and preferences; (4) increasing the basic standard tax deduction; (5) allowing families with dependent children a standard tax credit amount based on family size or modified adjusted gross income; (6) allowing a tax credit for higher education expenses; (7) allowing non-itemizing taxpayers a tax deduction for home mortgage interest and for contributions to tax-exempt universal pension accounts; (8) allowing certain small employers a tax credit for costs associated with universal pension accounts; and (9) repealing the alternative minimum tax for individual taxpayers. Imposes a flat tax of 35% on corporate taxable income. Limits tax write-offs for use of corporate aircraft and employee personal use of noncommercial aircraft. Requires governmental agencies to withhold 3% of payments made for goods and services. Imposes penalties for promoting abusiv…