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Dozens of Tax Cuts Set to Expire in 2012

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    Time for flat tax?

  • Duration 8:28
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Well -- you're gonna need that bubbly tonight because tomorrow taxes are on our way up.

-- more than seventy federal tax cuts are about to expire talk about and certainly not to mention costs.

Wheeled out of work gang has a plan to fix it all a simple money saving flat tax hire her body happy new year to all -- -- I'm David as a let's go into focus.

-- -- -- Itself Elizabeth MacDonald Rick -- bill Baldwin can't make Nicholas and a Morgan.

Brennan and Steve this is all yours go ahead and I don't the flat tax makes -- this year.

Well David if you want to turn a flat economy into fat economy the flat tax is the way to do it lowers the price and burden -- good things like productive work risk taking its success.

Attracts foreign capital.

We don't have to spend six and a half billion hours filling out -- hours a year filling out tax forms and removes a major source of political corruption.

Half the lobbying in Washington revolves around it.

Also crops the spirit of the American people they don't know what the rules are everyone's tempted to go by -- the push the envelope.

Bad all around get rid of -- start over turns this into a nation of law.

Makers -- it sounds good to me how about you.

In I I don't agree with the flat tax and -- especially with with Steve when I don't understand how he can call his plan a flat tax because a flat tax is at such.

A flat tax no exemptions no deductions by do you think we do you need exemptions and actions not -- the lower income bracket.

I mean the senior plan is all about you know with a low income bracket you know giving them exemptions deductions possibly for you know some parents with young children.

But it's really still going to hurt the middle class they're the ones who need these exemptions because the middle class is burning right -- today's economy they're losing their jobs their incomes are filing.

And there underwater homes are worth less than the mortgage and doesn't themselves they can't afford a flat tax and -- the same race the race.

But GMAC would that would attacks -- that is on this as uncertain as -- a lot of people don't know what's been -- and how could you it's like a 100000 pages.

Isn't it timeout for a flat tax to make things a little more certain -- wars are taxes are concerned at least.

Yes he's right it's past time to get a flat tax.

In this and this that country and you know it would help the middle class.

The middle class tends to get roped into a very got complicated system that even IRS workers and -- also told me.

They don't like the current tax system because and invites corruption and tax invasion so that's how the middle class gets hurt.

Because they tend to get -- with all sorts of complexities.

Not to is something when you see the former Communist states in the I adopting a flat tax and we're left with is Byzantine fishing pile.

You know what the -- I'm -- it's -- the IRS into America's museum -- mass confusion you gotta say if this former Soviet satellite states get it why don't we even Iraq has a flat tax.

Yet Morgan it's confusing not only for the average guy -- -- street but also for the markets in general the market's basically in 2012.

Word 2011 were flat.

They didn't move we ended 2011.

Basically where we ended 2010 and part of it is confusion and uncertainty about taxes.

Yes yeah I am not gonna disagree that we need a dire overhaul the tax code and and I do.

In concepts like regular flat tax but what worries me is that eighteen point 5% of our GDP is -- tax revenues right now and all of the flat tax proposals we have out there.

Run the risk of falling short of that number and I feel like -- -- in -- This cutting -- spending or maybe you know supplements it with a -- -- That we're going to just you know put our debt -- in -- Well I -- Rick I know Steve can make this -- better than I -- and he'll have a chance to reduce -- but the fact is a flat tax doesn't mean necessarily.

Less revenue there is a -- -- just simplify things get more people paying into the system and that would keep revenue levels about -- are now.

-- you may be surprised but I do not have the allergy to the flat tax that you might expect look.

I think that's not good at act as I like to call it.

The especially -- -- code.

It's completely broken it's useless now well give Steve credit for is he has proposed a flat tax my goodness he's the godfather in the flat tax.

But he has made real efforts.

To find ways to bring the exemption level up so that middle class and lower income earners will not be hurt just as quite as bad.

It needs a little bit more work but if that aspect of it is covered.

There's something to it very literal -- however got to wait a minute we get it via the minute we get it.

Congress to start fooling around with -- to either lower it or -- new new breaks for special and.

Good point Rick our bill are you for her again I think -- -- driver simplicity Steve Forbes is importantly confused two entirely separate.

Criminal activities by congress.

Walk out of it's jumping up the tax totally -- -- -- their.

For their friends you know the spot you need depletion allowances -- might favors the qualified pole -- what are the -- -- a separate thing what you started talking about David was this.

The aspirations that's a different team that that's a deal.

With budget shenanigans pretending that the budget is balanced because like Medicare costs are automatically go down on March 1.

-- -- Good point Steve you've got a lot to deal with your daughter -- lab with that it can't mountain and give our holiday present a signed copy of my flat pass -- I can't how -- -- -- representatives yeah.

I designed my flat tax specifically so that everyone gets a tax cut so we don't get in the game of who's helping who's hurt and in terms of -- Go ahead -- I'm just wondering what about in terms of small businesses what sort of tax -- can you get them because how can you well yeah OK yeah.

Question and answer Miller he's gonna larger company.

That that businesses all businesses have their tax rates cut from 35% down to 17% under my proposal no more depreciation schedules -- you make it capital investment.

Write it -- in year one if you have a loss you can -- against future profits that we can focus on real -- And sentenced -- -- have thousands of dollars on accountant I got a couple of question what about charity deductions deductions for charity contributions or mortgage interest deductions those are two things a lot of people care about while again under the flat tax you're gonna have more after tax income and more prosperous economy but -- charity and -- -- mortgage interest.

All the experience shows David that when people have more they give more in the 1980s Reagan cut -- top rate from 728%.

Charities thought this would hurt instead -- help people gave more.

And on homeownership if you have more money more after tax income and a better job you're gonna buy more house slowly -- would it help the economy and specifically jobs.

I would help the economy and jobs is -- this awful tax system off the backs of our entrepreneurs.

And small businesses and even the issue is can congress do it I don't think you can have tax of -- to have Charlie Rangel and Harry Reid sitting there that's like Clinton a cat.

Among the pigeons and the Charlie Rangel were elected Cheshire cat among the pigeons because legal those guys elected Tigger -- -- agree poker -- with attacks collective you know for their special.

Let grandma passed -- bill owner -- in this two bills quite a nice thing if you don't -- from -- expirations.

Up its its permanent and for those of a fear about it triggering of the code.

The very simplicity it's his best defense he gonna do -- -- think everyone sees it right now I can make match up changes but in -- -- nobody knows.

-- -- yes I'm willing to bet that richt doesn't figure to be permanent because Rick I tend to agree with the event that congress always likes to fiddle with things they never keep their fingers still.

That's why we have to burn data used to actually prove that you prove the point you bring -- -- Right after we got -- what this guy should US Steve about some exemptions that you would like.

Charitable well how -- our that is why this is veterans -- of vitamin -- gotten back yet.

That's why give people a choice.

-- stay with the old system and go what the -- that's of Hong Kong does.

And that lowers the temperature political temporary and and -- cam what about that what about have you have a choice if you don't think the flat tax is good for you or -- people don't they can they can choose to do something different go back to the old way.

I think that's when I get into the war as society of toys we like a lot of different options and I think that you should be able to decide whether you wanna go with a flat tax or you wanna know what the big buck and I like the big -- actually because I.

I'm excited I'm.

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