Presidential hopeful Fred Thompson has unveiled his new tax plan. Not being qualified to comment on complicated fiscal matters on short notice, I can only say that I hope taxes will be a big issue next year and furthermore that those who don’t want large additional chunks their income confiscated will be able to make moral arguments against this insidious practice. Tax Prof Blog has good material on the Thompson plan:
“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.”
Thompson’s plan is also a stepping stone to raising an important subject.