Republican Unveils Tax Plan

Sunday, November 25th 2007, 2:12 pm
By: News On 6

WASHINGTON (AP) -- Republican presidential hopeful Fred Thompson is proposing an income tax plan that would allow Americans to choose how they pay.

Unveiling his plan, Thompson said taxpayers could file under the current tax code or use a simplified system with a flat tax rate. The flat tax would have two tiers. One
would be a 10 percent rate for joint filers with an income of up to $100,000, or single filers earning $50,000 or less. Those earning more would pay 25 percent.

Thompson says he does not believe the plan would cut deeply into federal revenues, arguing that whenever tax rates have been lowered, the economy has grown.

Fred Thompson, like his Republican rivals Rudy Giuliani, Mitt Romney and John McCain, says he would permanently extend tax cuts enacted in 2001 and 2003. They are set to end after 2010.