Ben Stein: We Must Raise Taxes on Rich
Economist explains why cutting spending alone is not enough
- Duration 7:09
- Date Jun 29, 2011
Economist explains why cutting spending alone is not enough
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Any impact segment tonight is because Obama trying to divide Americans according to their class.
Here's what he had to say today.
I spent the last two years cutting taxes for ordinary Americans.
And I want to extend those middle class tax cuts.
The tax cuts are proposing.
We get rid of our tax breaks for millionaires and billionaires.
Tax breaks for oil companies.
And hedge fund managers and corporate jet owners.
There it is my favorite new class of rich people the corporate jet owners.
And that we were surprised to hear economists Ben Stein.
Apparently agrees with mr.
We've got to raise taxes there's just no way around it.
The deficit situation is so serious there while I wish we did not have to raise taxes.
We just can't cut spending -- -- I wish you good we can't we have to raise taxes.
Obama is going to have to do it I -- enough Republicans in the house will go along with them and they've -- there will be a genuine -- And I am frankly frightened about I'm extremely concerned about it.
So is mr.
Stein in sync with the president.
He joins us now from Los Angeles and by the way should pick up his book of the little book of alternative investments then it's great to see -- aria.
I'm great thank you agreement.
-- -- -- -- book.
Well okay excellent now I'm not gonna make it clear -- -- -- how do you have clear eyes and actually make that comment about Obama not I got there.
But I will say that if you -- you confiscated.
The the upper income earners write it but tax them at the highest rate -- the Wall Street Journal I'm sure you read this back in April.
The millionaires and billionaires as Obama points out.
And you get you tax them and really what would Caucasus territory rate yield at about 938.
Billion dollars that's what would common of the federal coffers.
In a fourteen million dollar budget for trillion dollar budget fourteen trillion dollars plus and that.
That's a drop in the bucket don't we have a spending problem not -- not a revenue problem at this point.
Now point nine and in some billion dollars is not a drop -- the bug it's a tremendous amount of money and I am in favor of greatly raising the tax on very wealthy people millionaires and billionaires.
And I wouldn't raise taxes on people making doing and of 2000 here -- it's a basic arithmetic thing it's on ideological thing.
We are standing an enormous amount of money -- were not government tax revenue we're borrowing and somewhat overnight has so much debt there's going to be a crisis and they'll have to have to -- austerity measures here just as there were in Greece a simpler way of being attacked stable.
Who have a great deal of money tax them more.
Let them help pay down the debt we'll give -- -- -- is a million are out -- and twenty million a year he can afford a tax injuries.
Well it's well first of all it's their money so I don't know who's to judge what they can afford or not but.
Well we do know that they -- that I'll do well and.
That -- all due respect yeah it is of course is their money but the congress has the right to tax that and all has now and I decide that -- Then then yes you know they -- the lion's share of the tax burden for the country already getting in the list.
Well again the listening to -- to listen he I mean and now Bob my guess is -- seemed going to have fun that's.
That these people -- just like floating around I don't really care about the country -- creating jobs they're not spending it.
That bad what about what we know about higher taxes what we know about higher taxes right now.
Is that they do not in any -- address the real problem in this country which is entitlement reform.
Which this president has been MIA on he's not produce a single plan to address the real spending that goes into the tens of trillions when you when you game -- out.
Ten and fifteen years that's the real problem and it's not what you hit it -- gazillion there another another 5% on the taxes.
We have to address entitlement reform but whether or not we're -- -- -- animate meeting look -- and does security is highly debatable and everybody knows it's a third rail of politics -- America.
But we do know that every tax rich people more we will raise more money look I live and what out -- and everyone except where everyone except me -- rich and so do you and you know very well that if you raise their taxes even a surcharge of 10% are 50% on their taxes they'd still be -- -- -- is there's -- -- -- and they're telling -- -- -- -- -- -- I don't know what else they know what I look -- -- they won't do anything bad doesn't pay more tax well on our deficit.
Do you do you do you not agree that when you tax -- rich you ultimately end up over time.
Reducing much of the revenues that would comment.
For there not spending that they make their hiring in companies where they hire me a lot of this also is now I don't it is my business owners.
I don't agree I don't agree with you with all that they analyze your wanted to.
Well here -- your world here a lot of extraordinary intelligence but the data is very clear that we had higher rates of economic growth in the 40s60s.
And seventies when we had higher taxes that appear here very low but 43 taxes has correlate with a low period in productivity growth and -- period -- that has -- cannot Carly looked actually like we want.
-- -- -- -- -- -- Here's what here's what it -- outlet plug up then so badly shouting about coming to the point anymore legitimate and let them apparently can't I'm not shouting I'm actually just trying to ask a question in December.
The president and the Democrats decided to extend the bush tax cuts.
They understood that during a failing economy a weak economy a weak recovery.
You could raise taxes by all accounts the economy is growing at a slower rate.
Then it was even in quarters last year about 2% this next quarter one point 9% last quarter.
If it wasn't good to do in December.
Why is it good to do now.
There is no data.
Correlating lower tax rates for the rich with -- higher economic growth.
We had our maximum periods of economic growth does not want to cut wires and -- not -- century.
When we had very high rates of tax on the rich I'm not saying that's a great idea and I don't look forward to higher rates and -- on the -- But you cannot say that higher taxes on the rich are a bad thing in terms of economic growth that -- office -- data just.
Isn't there a lot of Batman and who were there it's just not the air and then we'll have a lending problems I'd let.
That's the problem as the spending a bigger problem than taxing -- -- and now.
The spending is a huge crowd went down at a bigger problem on how you calculated we're not be able to eliminate Social Security or not been able going to be able to eliminate Medicare we've got to do -- you've got to cut spending and raise taxes on the rich.
Billion dollars if that's the Wall Street Journal calculation is right well it's not when he came out over a number of years assignment 34 trillion dollar of budget we've got cut spending once they show.
Good -- I'm cutting spending bad.
I'll have you back and maybe you'll convince me that your eyes but appreciates great thing is on heightened with -- and athletic and up next you're body's gonna respond to the wiz.