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Flat tax vs. tax hikes

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    Which plan will create more jobs?

  • Duration 8:32
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The tax attack is back.

President Obama hitting the campaign trail.

Calling for tax hikes on millionaires.

And taking aim at Americans like Mitt Romney for paying 15% capital gains rate.

But -- hearsay stop attacking it.

Embrace it a flat 15% income tax for every one is how to bring jobs back.

Hi everyone I'm Brenda -- this is Bulls and Bears let's derive a -- The golden bears this week -- -- -- Tobin Smith Jonas Max Ferris along with locate stock dot com CEO John tobacco.

And former DNC deputy finance director David Mercer welcomed everybody.

Okay John a 15%.

Flat tax for everyone is back how to get everyone working again.

I mean I think that there's some historical success in that I think American should stand up and cheer.

For the presidential candidate who says I'm gonna give you a big fat flat tax and give you the -- were tax rate basically that Mitt Romney has and people are.

-- -- Mitt Romney for paying 15% on on the on the investments that he's made in his past.

But I think Americans should be looking to that and presidents from.

Kennedy to Reagan.

Two Bill Clinton to George Bush have cut taxes and saw stimulation to employment and lowering of unemployment and one of these candidates should should take hold that.

That didn't you say it doesn't necessarily.

Bring jobs.

Well it's a -- at the conceptual framework and those that have embraced it in the past that being Phil Gramm ran for president.

Or Steve for us and we all know where those campaigns might most recently.

-- and to refer to Romney which I'm glad was.

He and factors said and you should bring -- on the show has said the flat tax would be attacks on the middle class so I'm glad Romney was raised so we can put that point there.

And Toby with.

But well let's talk -- just have about the flat tax itself does it bring jobs what does it mean for job well and.

It it has in every country that it's -- been used it's -- it's worked for two reasons number one is because it simplifies things have been if you look at the money that we -- the United States they average they think ninety billion dollars a year to comply with this so it and and leases that and it creates capital when you create more capital you create more investment.

And unbeknownst to most people -- -- the Democratic Party side.

More capital equals more jobs it's actually won a one correlated and this is exactly the type of outcome you get when you go -- act until -- people out of jobs.

Tax attorneys it is not good for -- -- -- -- -- -- -- -- -- -- -- -- Conceptually yes if we -- the -- it would be good for jobs went to the point where America went bankrupt because they're not taking enough money with a 15% across the board tax break to pay for all they're spending.

But everybody paying a fifteen percentage it is just it's not enough level we're gonna go to a system -- download against it out to be at least 20% just including cap gains including the Mitt Romney in Buffett tax rates.

Because that's how we spend money in this country in -- -- it was major across the board -- storm far more than anybody's talking about.

It's just not financially feasible now the benefits on as far as jobs.

Once -- the situation of different tax rates you have game playing going on.

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Odd behavior goes away when you have every kind of income is taxed the same voice there are benefits to what I did deny it to finish you and talk about everybody -- -- Romney Buffett tax rate because it's impossible the way we -- our country.

I don't think it's impossible because 50% of America pays -- -- so I'd like to get at least 15% out of them.

And that'll -- to stimulate revenue as a small business owner I think.

It's clear to me if I knew that my tax rate was certainly going to be 15%.

That I will be able to start to allocate some of those extra funds to build my business maybe hiring new people and grow up it I think that's what will stimulate the economy.

And Gary -- you've done some research -- actually on countries that have adopted the flat tax and what you've seen in the GDP.

Exactly -- and has since 199424.

Countries.

Have adopted a flat tax its interest saying no one.

Has adopted our complicated tax system so that's -- tell you something that's still what happens in that their countries like our -- share for example.

-- tax -- revenues increase 25%.

The first two years so right there.

You know -- that's partly -- compliance issue and part that's exactly what we want three we want as John points out everyone participating yes you can carve out.

-- exemptions for people below are at the poverty level I understand that.

But you know a 50% across the board it's just smacks of fairness and then what happens brandy you know you you -- talk about the GDP in the last.

Are reporting to the International Monetary Fund -- thirteen countries that reported amongst those 24 should GDP growth of 10%.

What was our GDP growth last year.

Flat or you know offered me -- maybe one or 2% so clearly when you have.

A flat tax -- GDP growth what are you gonna get every time we've -- big GDP growth like that it leads to increase jobs.

I can't sear reason not to do it well.

David -- tell me.

How does that tax hike lead to more employment.

Where where it well it it's it.

If I might say it's a realignment.

You have the tax cuts that was extended to the millionaires and billionaires through ten years during the and and into the bush years and into the two and Obama.

And that has not generated the jobs and in fact.

Has led to church billion dollars being on the sidelines.

Where the jobs are coming in what we should be doing is stimulating the middle class not imposing a tax on them that's why the president is calling for payroll tax cut so that we can stimulate the middle class into his stimulating demand that leads to jobs and growth but we need to panic attacks hike.

On millionaires would need to job.

Two more jobs for Americans.

Well it's -- well I might to give some historical perspective.

It is really an expiration of the bush tax cuts to the Clinton levels and we know through the Clinton levels.

Back in the ninety's we had 22 million jobs.

At the level of tax that was its that was there before bush got an office right we -- The fact that I'm sorry I can't get capital gains tax was -- -- you're not it wasn't due to the income tax that was a capital gains cut.

That caused the increase both in employment and -- -- that would be Arnold doesn't Lazazzera is another -- yeah it's better -- does is it going from 39 of thirty said that this at all.

-- I'll cent flat tax which would and leases eight sort of activity that heaven forbid we would actually unleash.

Also -- -- you know only wish for the Clinton economy during the Internet bubble and this economy.

Not gonna ever happen -- and -- -- having an economy that we inherited from George Bush but the economy I don't.

They are two different economies and very did -- -- little hair and that's why we should talk about the historical nature of it I -- Historically it was the great tax cut of Bill Clinton who -- to capitol being gains taxes.

From 35 to twenty and Democrats continuously -- his performance from an economic standpoint so even he demonstrated that tax cuts help employment.

But would any tax I don't think I've supported the tax raise of Reagan that led to his.

Bringing down the unemployment rate.

-- and realigning it to stimulate the economy and when he ran for reelection.

And so you know again Reagan not only cut taxes but he also raised it when circumstances dictated.

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Math doesn't work -- a lot last for -- We should let the chips fall there today and we know that we -- to zero capital gains of -- percent the explosion and our economy we wouldn't know what to do with all the growth.

OK guys thank.

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