Sunday, November 25, 2007
Republican Presidential candidate Fred Thompson today unveiled his Tax Relief and New Economic Growth plan. The centerpiece is the adoption of the plan developed by the House of Representatives Republican Study Committee to give taxpayers the option of remaining under the current, complex tax code or opting for a simplified, flat tax code:
The simplified tax code would contain two tax rates: 10% for joint filers on income of up to $100,000 ($50,000 for singles) and 25% on income above these amounts. The standard deduction would be more than doubled to $25,000 for joint filers and $12,500 for singles. The personal exemption amount would be increased to $3,500. Therefore, a family of 4 would be exempt from income tax on the first $39,000 of income. The simplified tax code would contain no other tax credits or deductions. It would also retain the 15% tax rate on capital gains and dividends. This approach would dramatically simplify taxes for tens of millions of Americans. In addition, the larger standard deduction and personal exemption amounts will still provide significant tax relief to families with children. This proposal would serve as a stepping-stone to fundamental tax reform.
Here are the seven elements of the Thompson tax plan:
- Permanently Extend the 2001 and 2003 Tax Cuts.
- Permanently Repeal the Death Tax.
- Repeal the Alternative Minimum Tax.
- Reduce the Corporate Tax Rate.
- Permanently Extend Small Business Expensing.
- Update and Simplify Depreciation Schedules.
- Expand Taxpayer Choice.
See the Thompson campaign press release. Press coverage: