November 25, 2007

ONE CANDIDATE IS RUNNING ON IDEAS:

Thompson Proposes Tax Choice (The Associated Press, November 25, 2007)

Key aspects of Thompson's tax proposal:

_The choice of filing under the current system or a flat tax rate of 10 percent for joint filers with an income of up to $100,000 _ $50,000 for single taxpayers; and 25 percent 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 would be increased to $3,500. A family of four would be exempt from income tax on the first $39,000. The simplified code would contain no other tax credits or deductions, and retain the 15 percent tax rate on capital gains and dividends.

_Preserving the $1000 child tax credit, which was doubled from $500 per child.

_Protecting marriage penalty relief.

_Retaining education tax incentives, including Coverdell Education Savings Accounts, 529 college savings plans, and deductions for higher education expenses.

_Permanently repealing the estate tax.

_Eventually repealing the Alternative Minimum Tax, a separate system created 30 years ago to ensure that a few high income Americans could not use deductions and credits to eliminate their tax liability.

Thompson also would index the exemptions annually so that millions of middle-class families would not be subject to the tax.


All exemptions and deductions--except for dependents--should be done away with, but it's easily the most substantial proposal on any topic of any candidate.

Posted by Orrin Judd at November 25, 2007 6:43 PM
Comments

this is the first thing this candidate said that made me think he might be who we thought he was. otherwise he is what we thought he was, after we learned he wasn't who we thought he was.

Posted by: neil at November 26, 2007 7:57 AM
« THE ENTIRE CANDIDACY BOILS DOWN TO JUST ONE DAY: | Main | A CLUBBABLE MAN: »