Republican presidential hopeful, former Sen. Fred Thompson, R-Tenn., talks to reporters outside NBC Studios in Washington, Sunday, Nov. 4, 2007. (AP)
WASHINGTON (AP) -- Republican presidential hopeful Fred Thompson proposed an income tax plan today that would allow Americans to choose a simplified system with only two rates: 10 percent and 25 percent.
Thompson's proposal, announced on "Fox News Sunday," would allow filers to remain under the current, complex tax code or use the flat tax rates.
Asked whether the plan would cut too deeply into federal revenues, the former Tennessee senator and actor said experts "always overestimate the losses to the government" when taxes are cut.
Thompson added that money would be saved by his Social Security reform plan. He proposed that workers younger than 58 receive smaller monthly Social Security checks than they are now promised.
Individuals could contribute 2 percent of their paycheck to a personal retirement account, an amount that would be matched by the Social Security trust fund.
Thompson later talked about reversing the law permitting abortion on demand.
Endorsed by the National Right to Life Committee, he said today that reversing Roe v. Wade would allow states to restrict abortion, but acknowledged that some could permit abortion on demand.
The former Tennessee senator said that reversal has a better practical chance than a constitutional amendment banning abortion.
A reversal would leave state governments in charge of abortion policy once again. States enacted their own laws before the Supreme Court's historic ruling in 1973 that established a woman's constitutional right to an abortion.
Thompson predicted if there is a reversal, states would have the ability to restrict abortion more than they do now.
(Copyright 2007 by The Associated Press. All Rights Reserved.)