Transcript of Fred Thompson on The Glenn Beck Program

Glenn Beck Program ^ | 12/11/2007

[ArrogantBustard]

THANKS GUYS!!! I GOT IT NOW.

;'}

[ArrogantBustard]

Oh, yes ... the rest of the tax reform package looks pretty good, too.

[SJackson]

Should have included you in posts 38 and 40

[numberonepal]

I think Fred’s plan increases the standard deductions to the point that its far better than anything we have now.

Are the deductions also progressive?

[numberonepal]

That's a pretty friggin' huge pay cut.

That does suck royally. I wonder what Fred would say about this - especially someone like myself that cannot deduct a mortgage payment.

[ArrogantBustard]

Read on ... The interview was a bit unclear ... and I figured wrong.

[Beagle8U]

I think it would be a great deal for both working families and a single guy making 50-70K.

Single has been screwed for years unless they were on welfare making zero.

[ArrogantBustard]

I have requested that my #27 be removed, because it is totally hosed up.

[Beagle8U]

“Are the deductions also progressive?”

No. Read the plan, its a good deal.

[RockinRight]

I did the math, I would have paid about a grand less last year under this system. My father and stepmother would have paid more. They however have deductions I don’t have.

[agere_contra]

That's a pretty friggin' huge pay cut.

I ... can't believe some FReepers are still confused over this. It's a classic taper.

You pay 25% on income OVER 100K. 10% on income under 100K.

So a man on 175K income would pay 10% of 100K and 25% of 75K.

Is this clear?

[kevkrom]

It's just easier if folks go read the plan at Fred's site:

The Thompson plan would give Americans greater choice about how to pay their federal taxes. This plan is based on a proposal developed by the House of Representatives Republican Study Committee that would provide taxpayers the option of remaining under the current, complex tax code or opting for a simplified, flat tax code. The simplified tax code would contain two tax rates: 10% for joint filers on income of up to $100,000 ($50,000 for singles) and 25% 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 amount would be increased to $3,500. Therefore, a family of 4 would be exempt from income tax on the first $39,000 of income. The simplified tax code would contain no other tax credits or deductions. It would also retain the 15% tax rate on capital gains and dividends. This approach would dramatically simplify taxes for tens of millions of Americans. In addition, the larger standard deduction and personal exemption amounts will still provide significant tax relief to families with children. This proposal would serve as a stepping-stone to fundamental tax reform.

[agere_contra]

Sorry, you’ve got it now! My bad. :0)

[Beagle8U]

I’m single and don’t work now, but Fred’s plan would have saved me around 10K in FED taxes the last year I worked!

[SJackson]

Are the deductions also progressive?

See posts 38/40 for example.

Standard deduction is $12,500 or $25,000 for a married couple, plus a $3,500 personal exemption. These are the only deductions, you pay 10% on the first $100m ($50m for singles so we can still argue gay marriage), 25% on amounts above $100m/$50m.

[SJackson]

I did the math, I would have paid about a grand less last year under this system. My father and stepmother would have paid more. They however have deductions I don’t have.

Your father and stepmother would have the option of using the old system.

[RockinRight]

I know. Sorry if that wasn’t clear.

[Beagle8U]

A single guy making 70K would pay 6K in Fed taxes under Fred’s plan.

Crunch the numbers any way you wish under the current system
or the (so called) Fair Tax and it wont come close.

[Beagle8U]

* 70K gross

[HoustonTech]

I love the Fred tax, but after reading this thread I wonder how many will be able to take advantage of that post card. ;-)