Pawlenty proposes three-tier income tax system

Republican Tim Pawlenty is proposing a simplified tax system that only has three tax rates.

The former Minnesota governor also plans to announce an economic policy on Tuesday that would cut taxes on business by more than half. He is in President Barack Obama's hometown of Chicago and is outlining his plan to turn around the nation's struggling economy.

In excerpts of his morning speech, Pawlenty also is proposing what he is calling "The Google Test." If Americans can find a service on the Internet from a private company, then the government probably shouldn't be providing it too.

Yet Pawlenty's speech, his first as a declared presidential candidate, is also keeping an eye on politics. He says Obama has discouraged innovation and that regulations have weighed down an economic recovery.