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Democratic Congressman Chris Van Hollen responds to president's proposal and its prospects for approval
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I've been nice is CSX.
-- Greta good to be with -- nice -- -- -- yourself -- I assume that you heard the president says speech this morning.
-- -- -- one of the things He spoke about cannot not be know -- -- spawned a lot of wealthy Democrats who are not happy with the reference He also made today about death.
Millionaires and billionaires having to -- -- paid their fair share.
Are rich Democrats currently paying their fair share or not.
While the issue was making sure that.
Very wealthy people people making over a million dollars a year pay essentially the same effective rate as most of the people who work for them.
That's not the question is doing with all due respect is it's not new today we'll get to them to the -- buff Warren Buffett's issue.
But talk about -- wealthy Democrats paying their fair share have -- been paying their fair share for the last two with.
-- four years.
I think people who have been getting special breaks and special tax preferences are not paying their fair share they're not paying.
We share in the responsibility in trying to address the challenges that our country faces what the president was doing was laying out a long term deficit reduction plan.
And says it over a period of time.
-- we have to reform our tax code in a way that eliminates.
Preferences.
That benefit certain special interest and hit disproportionately benefited very wealthy people.
What do you think would be a fair share percentage.
Of income.
Earned income that the wealthy should -- Well if you go back to the 1986.
Reagan tax reform proposal.
They had the same rate applying to both in come on capital gains and dividend and -- didn't -- so.
The last time we had a big tax reform proposal under President Reagan.
That was the result that -- equal tax rate applied to.
Are folks who -- most of their income through investments in the stock market.
And people who earn their income by working for wages.
If that was a good enough tax reform plan for Ronald Reagan.
I don't know why it's not a good -- approach for Republicans today.
So it deceive I understand you correctly that -- the issue with Warren Buffett is that He doesn't.
Earned his it like a salary his income.
But He gets it because he's been a successful man and He gets for instance capital gains from his at that that's why he's in the lower tax -- and it's not like.
If He -- at an earned income.
What Warren Buffett said it himself that He gets most of its income through capital gains and dividends through investments in and our current system.
That's tax and a 15% rate a much lower rate.
Then a middle income tax Payer would pay for or someone who was that the 28% tax bracket right now so the point Warren Buffett is making.
Is that it's not really fair to tax incumbent has earned through dividends and capital gains at such a lower rate.
And -- -- earned by people who were you know going to work every day and earning their living through the sweat of their brow there's nothing wrong with.
Earning your money obviously through capital gains and dividends the question He improperly raised was why should people benefit from such a lower tax rate.
On that income compared to income earned from people -- -- wage I.
I think just add I think some of the gripe with some of the wealthy people that I've spoken to is that by the reference of fair share it suggested they've been cheating when they've been -- everything that has been asked to them.
And I think that's Pryor a little bit of the -- to create serve and I hate to use a term class warfare X I hear all the time.
But that the reference -- not paying their fair share it is I think that's one of the issues for them.
Greta that's ridiculous no one's accusing people of not meeting their legal obligations the point is the tax code as it's currently written.
Provides a much lower tax rate.
For people who earn their income through investments capital gains -- dividends.
Then it does for many people who earn their income.
By going to work every day and her you know wage.
And what Warren Buffett was pointed out is that his effective tax rate.
Is in fact lower than that effective tax rate of the people who work -- including a secretary.
So if it's not that no one's Warren Buffett is a complying with the law all these individually complying with the law.
The point he's making is we should change the law to make it more fair and to have shared responsibility.
Right now I'm -- does the check everyone has countries worried about jobs Democrats worried about Republicans and if you're unemployed you're really working worried about the unemployment rate.
I'm curious how do you grade the February 09 stimulus bill for job creation.
Since in many ways with the president's proposed is somewhat parallels that -- so what grade you give the February 09 stimulus as it impacts jobs.
We don't have to take my great for all you have to do is look get.
The grades given it by nonpartisan groups like the Congressional Budget Office they didn't give a grade they just gave the facts and they said that.
But haven't stimulus bill but different as the US -- I want -- -- -- -- I'm trying to give valuing it how good it is in your mind.
And I don't give million number like you didn't achieve that -- you want.
Yeah they're they're work there -- recovery bill prevented.
The economy from getting a lot worse a lot faster it prevented millions of Americans from losing their jobs.
Are we happy with the current situation in the status quo of course not but this is kinda like.
Running down an escalator writing up an escalator that's moving down quickly if you hadn't done the stimulus bill the recovery bill.
You would be much farther down but even with the recovery bill sometimes you feel like you're running in place because the economy.
Was on a huge downhill slide.
700000.
Americans were losing their jobs every month before the president was sworn in.
So He inherited an economy that was falling through the ceiling the recovery bill.
Help stabilize people in -- it has helped put people back to work we now have dairy -- slow economic growth.
-- succeed in giving -- group -- booster rocket push of course not but that's why it's important.
-- that we enact legislation and the jobs plan.
Here's more asking if you give it a high grade if you fit in European it is -- -- I can see why you know we should do it again and now almost exactly like.
And I look at the unemployment level and -- employment levels gotten worse -- and so I'm reluctant to give it a high grade and I wanted to for truly is the best I'm not suggesting that the answer.
But I'm wondering if it truly is the best -- if it has if it -- not.
Given us if that we don't have value it is a hugely successful step forward but maybe you'd do.
Well.
I'm just look at the fact spread at Congressional Budget Office says that it has saved or created between one and a half million.
And three million jobs now and in my -- saving or creating jobs is a win did we create or save as many as we hoped.
Make no.
But the reality is if we prevented the situation from getting a lot worse now the question now is.
What's next and I think when you've got 14% unemployment in the construction industry and you have bridges and schools and roads in this country.
That are need in need of repair and modernization.
It's a no brainer to say we shouldn't be investing in infrastructure.
I think it's a no brainer when people are hurting.
That you would extend and expand the payroll tax so people have a little bit more money in their pockets so they can go out and buy goods and services so that businesses can sell those goods and services and those businesses will that want to hire people.
That's what it's all about.
Sit at -- thank you and one thing is clear -- and Republicans Democrats will all have the same goal we all lot more jobs that everyone seems to have a different idea.
How to get the -- all want the same thank you congressman.
Thank you.
