Thompson Turns to Taxes Presidential Candidate Hopes Tough Talk Lures Conservatives

WSJ ^ | 100807 | AMY SCHATZ

[Fred]

WASHINGTON -- Fred Thompson entered the presidential race hoping to be the candidate of choice for conservatives. But he has stumbled in early attempts to woo social conservatives, partly because he doesn't support a constitutional amendment banning gay marriage. Now, as he seeks to win the Republican nomination for president, he is looking to lure the party's economic conservatives with an aggressive plan to curb government spending.

While all the party's leading candidates have embraced fiscal restraint, the former Tennessee senator seems likely to go further than his rivals. He has hinted at politically risky proposals to rein in Social Security and Medicare benefits. And he appears to be heading toward proposing tax-code changes to help lower corporate tax rates, as well.

But Mr. Thompson may have trouble balancing his pitch to small-government purists with his quest for popular support in the competitive early-voting states. Even as he decried what he described as Washington's dependence on pork-barrel spending last week, he reversed position after touring an Iowa ethanol plant, saying he now supports subsidies for alternative fuel.

"I have voted against subsidies in the Senate," Mr. Thompson told reporters after the tour, according to the Associated Press. "But I think it's a matter now of national security and we've got to avail ourselves of a lot of different resources, and I think renewable has to be a part of that picture."

So far, Mr. Thompson has painted his vision with a broad brush. He'll get a chance to offer more specifics tomorrow afternoon, when The Wall Street Journal, CNBC and MSNBC co-host a debate of the Republican presidential candidates on economic issues in Dearborn, Mich.

It will be Mr. Thompson's first debate and first major live event before a national audience since joining the race last month. He has been

[ellery]

In 1995, Thompson co-sponsored the Tax Code Termination Act:

Tax Code Termination Act (Introduced in Senate)
S 1673
105th CONGRESS
2d Session

To terminate the Internal Revenue Code of 1986.

A BILL
To terminate the Internal Revenue Code of 1986.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.
This Act may be cited as the `Tax Code Termination Act’.

SEC. 2. TERMINATION OF INTERNAL REVENUE CODE OF 1986.
(a) IN GENERAL- No tax shall be imposed by the Internal Revenue Code of 1986—
(1) for any taxable year beginning after December 31, 2001, and
(2) in the case of any tax not imposed on the basis of a taxable year, on any taxable event or for any period after December 31, 2001.
(b) EXCEPTION- Subsection (a) shall not apply to taxes imposed by—
(1) chapter 2 of such Code (relating to tax on self-employment income),
(2) chapter 21 of such Code (relating to Federal Insurance Contributions Act), and
(3) chapter 22 of such Code (relating to Railroad Retirement Tax Act).

SEC. 3. NEW FEDERAL TAX SYSTEM.
(a) STRUCTURE- The Congress hereby declares that any new Federal tax system should be a simple and fair system that—
(1) applies a low rate to all Americans,
(2) provides tax relief for working Americans,
(3) protects the rights of taxpayers and reduces tax collection abuses,
(4) eliminates the bias against savings and investment,
(5) promotes economic growth and job creation, and
(6) does not penalize marriage or families.
(b) TIMING OF IMPLEMENTATION- In order to ensure an easy transition and effective implementation, the Congress hereby declares that any new Federal tax system should be approved by Congress in its final form not later than July 4, 2001.