Reagan Economist Breaks Down 999 Plan
Art Laffer on 'Special Report'
- Duration 3:39
- Date Oct 13, 2011
Art Laffer on 'Special Report'
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Talk more about McCain's plan is economist -- -- a former advisor to president Ronald Reagan He joins us from New York art thanks for being here.
Thank you very much -- it's a pleasure are you a supporter of 999.
I think 999 is a wonderful plan.
I think a lot of the candidates have very good plans for tax reform but I love the 999 plan I think it's a great first step.
Were you consulted in.
Making -- 999.
You know I've -- would almost all the candidates and I didn't come meet with -- Herman Cain.
But he's been down in Nashville twice and I've spent a lot of time with him and I did talk about his tax plan -- why is it a good plan.
Well first place what you really want to do on taxes.
If you wanna lower the tax rate and broaden the tax base so you provide people with -- lease incentives to evade avoid or otherwise not report taxable income.
And you get at least places to which they can escape.
What you really want is a very efficient tax code that people don't try to cheat on or get out on and his plan does exactly that it broadens the base dramatically.
And it lowers the rate and it's especially important getting rid of the corporate rate which is which is -- -- silly silly.
Sex -- -- hard critics of this say this is very regressive.
And would hit the war what are you stated that.
I don't think that's true.
I mean her McCain's plan number one get through the payroll tax which is also very regress -- to get sort of a lot of other taxes in the system as well.
And what it does have as it has at the end of demographic for those below the property in poverty level.
It replaces some of them so they so they really get their taxes back if you will Brett so I don't think it's regressive at all.
And what about the critics on the right to say once you -- open this ticket to Washington that eventually you could have a 20/20 twenty plan because there's no.
You know game lawmakers would want.
Tax more down the road.
Well you know you've always got that problem with -- -- if ever want to tax more in ten years they can pass legislation.
That we'll do it in ten years you just can't control future congresses or future presidents.
And this plan is a very efficient way to collect the requisite revenues we need.
To run government so I think it's a very good and efficient plan but if I could do anything to stop future politicians.
From ever raising taxes I would love -- figure it out but I don't know how to do that.
-- says in the second phase.
He would essentially phase out income taxes for individuals and corporations in favor of a national sales tax and that could get fairly high.
It's for the critics who say you know people on fixed incomes and people -- worried about the price of things going up.
-- what how do you respond to them.
Well I I don't know about the long term -- that I would just -- in 999 myself.
But we've got to believe that taxes -- and all the product prices throughout Brett.
They always are it's just how they get in that price but if you tax a corporation the corporation's gonna charge a higher price for the product of the that you -- If you tax the income tax it means the labor the ego in the making the product is higher so as long as your collect in the same amount of total revenue.
And fairly efficient way -- that none of these systems will lead to higher or lower prices than the others.
It just won't make any difference to the overall price level so bottom line art you're a supporter.
I think there's a lot better than our current tax of -- -- current tax of British you know I -- about -- -- filled with all sorts of awful bucks chickens.
Pigs and turkeys in there and they've just got to be cleaned out we've got a completely revamp the -- I -- I really would love to see that done.
Part laughter thank you so much for your time thank you -- it's a real pleasure.