Bloomberg: Let All Bush Tax Cuts Expire
New York mayor creates firestorm
- Duration 8:46
- Date Nov 12, 2011
New York mayor creates firestorm
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Raise taxes on every one New York City mayor Michael Bloomberg created a firestorm for saying this -- how to get America's economy rolling again.
Just allow the bush tax cuts to a spot expire at the end of 2012.
Not just -- high income workers as the president has proposed but for all tax brackets.
Is he right -- -- getting rid of the bush tax cuts create tax hikes that will cripple the economy even more.
All everybody and -- the sunny and block -- the cash and it's.
I -- crew this week we've got Wayne Rogers Jonathan -- get of course Tracy Byrnes.
Also joining us this -- senior vice president of macro portfolio advisors Jim what camp.
And the founder of movement vision -- Sally Collins so welcome to all of you and similar to start with you.
-- used to eliminating the bush tax cuts is get a whack the rich.
More and -- class hurting them hurting all of her in the economy this debate has been going -- for so long why do you say that.
Anybody thinks that this is a good idea hasn't studied our economic history.
Doesn't care about jobs and certainly doesn't care about toward middle income Americans.
Look if you undo the -- bush tax code what you're gonna do if you're gonna raise taxes on lower income Americans raise taxes on middle income Americans re implement AMT for middle class and upper middle class Americans.
You're gonna discourage job creation by -- racing capital gains taxes at the same time we have expiring tax credits for depreciation.
And have business expenses so you're gonna you're gonna take that business creation model that.
-- capital investment which is the single biggest determinant a new job creation and you're gonna eliminate that this is the worst idea I've seen out of politicians.
And I thought they run out of all of all the bad ideas they had.
You know let me take this -- Jonathan you're a numbers guy and let's go through remind everybody it has been -- if this happened back in 2001 in particular what the bush tax cuts.
In a three dollar rebate for individuals for couples 600 dollars a reductions in personal income tax rates they created a new 10% bracket.
That's for some over the 15%.
Child care tax credit that was an issue married couple's estate tax and a lot of these were very.
At the time applauded as good middle class tax breaks now when you say the phrase.
Bush tax cuts you get an onslaught of criticism Jonathan where do we change in ten years.
I think it's the.
Velocity -- that's changed and how -- -- less force your taxes -- force right it's governments forced redistributing your own money to the -- could.
Political class to the investments the entitlements so how can less freedom create well I just don't know how that's possible anything whether it's 50% acts like a 20% tax hike.
I think that's what -- the changes that notion that government spending creates wealth.
In is the size and scope of government that needs to change not the taxes we get taxed enough already it's government need to do the changing not the private wealth producing parts account.
We know sell something else that Mayor Bloomberg said is he basically so this this would eliminate.
Class warfare that is his reasoning here and this this Michael Bloomberg somebody that's respected in the business community coming out saying something that surprised many in the business community.
Right somebody who who made his wealth who earn as well.
And at the same time understands how society how government have a structures.
Of our common community helped him create that wealth and understands responsibility get back.
Look at -- one who thinks -- keeping his tax breaks is a good idea must have amnesia they disproportionately.
The wealthiest of the wealthy of the wealthy.
Haven't since having these tax breaks created jobs so if this is the way to stimulate our economy -- this is the way to create jobs.
Why don't we have them.
Well -- -- -- I think that line and not act every like three times this notion that taking the bush tax cuts the way it's going to take away the class warfare.
I'm just creating more class work their principal all the people that sit at his little Bloomberg terminals are proud to be believed -- to right now.
Those are the people he's hurting he's hurting the customers the people that he pays his bills with.
He's creating more of a mess and you know what he's not going to create jobs by taking away the brutal -- -- wait wait -- -- here Wayne Rogers one point here Bloomberg did say in all fairness that look this isn't a great plan at it but it's the best plan that we have right now.
To deal with -- -- trying to call person.
And issues that we have right now as a country that does that.
The right well he.
He saved some -- politically feasible but I take issue with what you use -- you said -- south but it wouldn't -- talking about.
The bush tax cuts you know favored the wealthy they did not.
In 1980 the top 1% of the people tax paying taxes paid only 19% of the total -- -- 2004.
After the bush after the bush tax cuts the top 1% paid.
Of all of the -- so your facts are wrong you you should get ahead.
But do we get back to -- happened to be wrong about that in fact the top kill president who paid 44% in nineteen did 2004 they paid as much as 60%.
So it did not favor the rich people it cost the rich people and by the way did produce more revenue in those times that I'm not saying they -- great.
The bush tax cut to the hole but they you've got to get -- -- stretches before you gotta make that argument.
-- fact that there aren't regulated like other things enacted this SLI.
-- respond the facts are clear first of all your talking absolute number.
-- -- -- dollar amount and us as a percentage of total tax I've -- that the rich pay what you -- went up because the rich got obscenely richer over the last decade.
Yeah Ali and number -- share the -- right now in our country are paying disproportionately.
Low percentage -- -- -- tax rate.
Compared to working class Americans wealthy -- -- they.
Number I didn't -- Yeah I think when you can't you use will you use you use that word has seen late.
Yeah yeah tell -- how Hulu with the person who makes it that decision that it's obscene you.
On the -- -- the people while sir I'd like that when look when we have a record inequality in our country when the -- -- getting -- -- -- and still not creating jobs and meanwhile because we've taken those tax dollars.
Out of the public sector to help them do well worst cut we're laying off teachers were laying off fire part of what.
We're literally killing jobs and not and I I think.
I don't know yeah.
That's my -- -- the losing ground to be spending money -- Solyndra and things like that is that your idea of creating jobs aren't hitting it straight.
It's not because the administration is creating uncertainty and you almost 40%.
Of low income people that they're not it -- Nothing no federal tax whatsoever there's no up quality in the current.
Tax system to point thinner and at the rate is completely wrong because they cover the tax revenue bill that comes in every year -- -- admitted to not only.
I haven't studied our economic history I mean look when I raise taxes under the first George Bush.
Revenues went down -- -- deficit went up when Bill Clinton raised taxes in 92.
Revenues went down and the deficit went up when we -- tax cuts under Kennedy under Reagan and under Clinton -- -- second term.
Revenues went up and the deficits went down why -- -- look at our economic history here.
It's big and heavy economy to stay out and and those -- -- ironic that that is a perfect example of the overall economy and we look that big economy has been.
Up and it has been down over the last we're about a ten year span we're talking now about -- -- sunset that will change how the economy.
Behaves in right now it's not behaving -- well.
Well my fear is that it's gonna focus more of the economy away from Wall Street and towards Washington I mean I guess.
It comes down to that notion of where do you believe wealth college from if you believe it comes from government redistribution then.
Actually raise taxes on everyone what and you want to pay more taxes if you believe that wealth is a product of -- intelligent profit seeking mind and we should be allowing those Sally you mention.
Made all that money to keep the money not that they -- that that they earned we want people to make money to become profitable to create wealth in this country that's -- comes from.
Higher taxes for except prices -- wealth creators and those -- Buoyed by Sally what what did you -- -- make as -- close this out is that you by letting the bush tax cuts expire sunset a few well after ten years.
And then being enforced it wallop that.
Every one at the end of the day I showed you.
Couples a child tax credit you know all of those are three dollars six dollar credits that will go away -- Fare but but what they're gonna go back to instead is look Chris -- increasing the quality of public schools.
So that your so that folks who -- got those -- -- the don't have to worry about trying to send their kids to private schools at a Catholic schools and their finger on -- education look our government -- a lot processing.