Thompson Tax Plan DOA

J.J. Jackson* | November 29, 2007 

Filed Under Taxes and Taxation

Fred Thompson is disappointing a lot of conservatives who hoped he would be the savior of the Republican Party. His latest faux paus is the endorsement of a non-flat, “Flat Tax”.

The introduction of a voluntary flat tax is a cornerstone of Mr. Thompson’s proposal. Taxpayers could choose to pay a flat income tax, which would be charged at two rates: 10% for joint filers with income up to $100,000 (or $50,000 for individuals) and 25% on incomes above that. Americans who opted for the flat-tax plan, however, wouldn’t be allowed to take tax credits or deductions including mortgage interest, and would continue to pay taxes on capital gains and dividends.

The problems with the plan are numerous. But some of the major ones are that:

1) Its not “flat”. Its “progressive” because it has an increasing rate as you make more money and are more productive.
2) As someone that is in the six figure income bracket (because both me and my wife work and I own my own business) with current tax deductions I pay far less than 25%. Based on the averages I see each year based on our income bracket so do most people in the same boat. So this would be a tax increase. I’m sure however that the liberals who love to soak it to people will embrace this idea however.
3) It still taxes income. This is still a bad idea because it provides only one way for Americans to avoid funding government. And that is to not work. Hence the government still gets you over the barrel.
4) What the heck is this “voluntary” stuff? Either make it the tax of the land or don’t. Who are you now? John Kerry with a waffle like this?

Even with it’s flaws, such as the prebate which makes it also an effectively “progressive” tax, I still support the Fair Tax and Fred Thompson gives me fewer and fewer reasons each day to consider him a viable candidate.


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2 Responses to “Thompson Tax Plan DOA”

  1. Thompson Tax Plan DOA on November 29th, 2007 4:29 pm

    [...] Original post by J.J. Jackson [...]

  2. RonniesRayGun on November 29th, 2007 6:33 pm

    So much promise. So little in reality. Thompson is on the verge of a fizzle.

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