Fair and Simple Tax Act of 1985

[AI summary unavailable — showing source text] Fair and Simple Tax Act of 1985 - Title I: Reduction of Individual and Corporate Tax Rates - Subtitle A: Reduction of Rate - Amends the Internal Revenue Code to revise individual tax rates. Imposes a tax rate of 24 percent on the taxable income of every individual, estate, and trust. Imposes a tax rate of 15 percent on corporate income which does not exceed $50,000, 25 percent on taxable income exceeding $50,000 but not exceeding $100,000, and 35 percent of taxable income exceeding $100,000. Subtitle B: Increase in Amount of Personal Exemption and Zero Bracket Amount - Increases the amount of the personal exemption to $2,000. Increases the zero bracket amount to $2,600 for single taxpayers and $3,300 for a joint return or surviving spouse. Provides for an annual adjustment in the personal exemption and the zero bracket amount by a cost-of-living adjustment based on the Consumer Price Index. Repeals the exemption for dependents who are students over the age of 18. Subtitle C: Employment Income Exclusion Established - Allows an individual taxpayer to exclude 20 percent of the amount received during the taxable year by such individual as employment income. Provides that the exclusion …