You're watching...
Debate over Obama's selective use of Bush-era tax cuts and tax hikes on wealthy rages on
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
How nice is thank you always going to be with I don't talk taxes with the -- and I must -- first but senate majority leader Harry Reid said today.
Congressional Republicans want lavished huge across the board tax breaks.
Billionaire hedge fund managers and people like mega rich celebrities like Donald Trump.
Fabulously rich so called small business owners like Kim Kardashian and Paris Hilton could qualify for these wasteful -- -- I hardly know her stalker.
First -- all Republicans are not proposing any tax cuts for anyone.
Let's let me repeat that Republicans are not proposing any tax cuts for anyone.
What we're hoping is the President Obama and senator Reid will not increase taxes on any Americans.
What the president proposed a couple of days ago was that certain Americans would have their taxes go up.
And unfortunately.
From our perspective it's very bad for the economy because most of the very people who would be creating the jobs and the economy mostly small business owners.
The very people two years ago the president was unwilling.
To raise taxes on because if he -- and on according would be a blow to the economy.
Well economic growth back -- was over 3% of -- under 2% so if it was true then it's even more true today that we shouldn't raise taxes on small business.
-- -- -- fact that you have to explain that -- and that seeking to cut taxes on anybody's just to be that the Republican Party has sort of is losing this ground game on the PR because.
The with the way that this particular call the bush tax cuts in those attacks at that -- twelve years ago but that.
That some people referring to it now would you agree that the nomenclature of the war on words at least that made public and Chrysler's in this one.
Don't know whether we're losing -- but you're absolutely right that President Obama insists on calling our ideas something that they are not he keeps talking about Republicans -- -- cut taxes for the rich.
Nobody -- repeated again is proposing cutting taxes for anybody.
What's going to happen automatically.
On January 1 of next year is that everybody's taxes are going up.
Because under the law as you point out the rates that have been in existence now for a decade.
Those rates will automatically go up unless congress and the president stopped from happening.
That's what were asking to -- just don't let the taxes go up Mr.
President.
That will hurt American families it'll hurt American jobs it will hurt American competitiveness just don't allow the tax rates to go up on anybody and by the way what he's proposing.
Isn't just marginal income tax rate for things like the death tax.
So if if you're that the trial he got a brother and sister your dad owns a plumbing business and he dies.
You then are faced under his proposal with a 45%.
Tax rate.
On the income subject to the death tax in other words what the value that businesses.
Minus the exemption.
45%.
Tax rate is that fair.
Well -- couple issues wanna see impact it has who doesn't have the presence -- time on the economy and and business owners.
The other is whether or not the increased revenue.
The increase taxes for people making over two or 50000 dollars a year whether that would have a significant dent in handling our deficit.
Or whether or not has a political -- and I suspect I think it's a political lot of I'm wondering doesn't make any inroads towards dealing with our chronic deficit -- It doesn't raise enough money to do that.
It's it's detrimental from from two standpoint.
Don't the most difficult is that it takes money out of the private sector.
That camp and be invested to hire people or create more products in other words to to help strengthen the economy.
Secondly it gives more money to the federal government to spend.
And I don't think most people think the federal government very wise what we spend these days.
Third as you point out it doesn't raise all that much money would be much better off if you wanna get -- most bang for the buck.
Leaving that money with a small business people who earn the money let them invest it in their businesses that'll do a lot more to eventually get money to the tree injury.
Then taking it from those people today because as their businesses grow and expand they'll have to pay greater income taxes -- that helps the federal government.
The Democrats -- public about handling it's I talked -- Democrats is it that has a very very small impact on small business time very small percentage of businesses that this would have an impact -- Republicans and and it's frankly every small business person.
I don't how does -- how we know who to believe on these north it brought.
-- here's the truth in terms of pure numbers most small -- my wife was a small businessperson.
By herself I said if you make more than a thousand dollars a year or slow down this isn't to make money it's for you to be doing something it's a lot of fun for you you enjoy doing.
But it was never going to be one -- so yes it is true.
That a lot of really small businesses one or two person businesses are not that impacted by.
But how many are -- almost a million how much of the total revenues coming from these past through entities is affected over half 53%.
Bottom line is the companies that really create jobs the bigger small businesses are the ones who are infected by this very very.
Our I didn't look -- implication because -- Democrats are gonna I'm gonna say yeah we're trying to give the middle class Americans a tax cut and those Republicans.
They don't want this climate for the the the rich and the hedge funds in the billionaires.
And that's the message it's going.
It is and let's get back to the truth now.
They're not giving tax cut -- that's the message you get deal it that's right and I'm I'm doing it right here by answering nobody is talking about a tax -- including.
The Democrats.
All we're talking about doing is keeping the tax rates where they've been for a decade.
Since 2001.
And 2003 of these of the so called bush tax cuts.
But we're not talking about reducing goes about cutting even more we're seeing just leave that in place.
Don't raise it on anybody.
And neither the Democrats nor the Republicans are talking about reducing taxes below that.
Until we get to next year potentially when both sides have talked about fundamental tax reform.
Where we might be able to lower rates somewhat by eliminating so called loopholes.
But in terms of net revenue in my guess is it's about the same to the federal government so you're not even really talking about it it cutting taxes there missed.
Opportunity with that fitness and some balls because they want to get rid of -- 3300.
Locals.
In the tax code in and of course of symbols when the of them went the other way.
It was not accepted was at a big missed opportunity.
Simpson and Bowles made some good recommendations about fundamental tax reform but one of the things that they -- wrong I think was.
In raising the capital gains and dividends tax rates the very tax rates that are most important for capital formation for business development.
And that's where I I parted company with them yes sure let's eliminate some loopholes some of these deductions and credits and exemptions like it at them all credit and things of that -- don't -- -- senator Grassley that -- of course not -- different views in the congress about those things.
And the citizens should be involved in that debate and tell us what they want to save what they don't want say.
But one thing that almost all economists -- agreed with this when you raise the tax rates on dividends and capital gains as the president just proposed doing a couple days ago.
You make this very uncompetitive.
And prevent businesses from getting the capital they need to hire more people produce more goods sat except thank you for.
