Campaign watch: Fred’s flat tax

The Patriot Post

Despite the Leftmedia’s penchant for portraying Fred Thompson as a lazy latecomer and campaign slouch, his policy proposals are certainly more concrete than those of most other candidates. We have already relayed his Social Security proposal. Now Thompson has announced a bold plan for tax reform. While other candidates wax eloquent about the need for tax reform, often offering zero-sum solutions (a tax cut here must be offset by a tax hike there), Thompson proposes abolishing the death tax and the Alternative Minimum Tax altogether, with no offsets. He also wants to cut the corporate rate from 35 percent to 27 percent. The boldest idea, however, is to offer a voluntary flat tax with two rates of ten and 25 percent, while keeping the current system of deductions as an option. Families of four would receive an allowance of $39,000 and pay ten percent on income above that up to $100,000, at which point the 25-percent rate would kick in. We’re no fans of the 25-percent rate—it’s not exactly flat if there are multiple rates—but it’s a start, and the voluntary component makes it especially attractive. Of course, Ron Paul proposes abolishing the IRS, and it doesn’t get much more concrete than that.