Republican U.S Senate candidate Tommy Thompson is detailing his tax reform plan. The former governor says he wants to make the Bush tax cuts permanent, reduce corporate income taxes, and exempt families from taxes on less than $100,000 in capital gains. Thompson also wants to repeal federal taxes on Social Security benefits and phase in a flat income tax.
Thompson says the current federal tax system is dysfunctional, and the complexity intimidates families. Also, he argues it gives businesses an incentive to find loopholes so they can stay globally competitive.
Thompson says his plan would simplify the lives of Americans and help get federal spending under control.
The state Democratic Party was critical of Thompson’s proposal, saying it shows Thompson’s “desire to make Washington work for him, not Wisconsin.” Party chairman Mike Tate says “Thompson’s flat tax gimmick would result in a massive tax break for wealthy people like himself, while largely ignoring the needs of the middle class.”
Thompson is seeking the GOP nomination in the U.S. Senate race. He’s running against former Congressman Mark Neumann, state Assembly Speaker Jeff Fitzgerald, and hedge fund manager Eric Hovde.