Tax hikes or spending cuts?
Which will help US economy more?
- Duration 8:19
- Date Jul 14, 2012
Which will help US economy more?
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President -- -- for tax hikes he says will help the economy but a new poll shows that 66% of Americans.
What the government to cut spending across the board instead so -- one.
It's gonna help America more or hire a lot I'm Cheryl Casone -- and -- cash and end.
Are cashing -- this week we'll wait right -- -- Jonathan Hoenig Tracy Byrnes John Layfield.
Also joining us because -- -- but those so a lot to all of you in -- way.
-- look right on this the president are those that say that we need to be cutting government spending.
Well obviously had to I think the president is wrong in the following sense I mean it.
This is this whole philosophy of keynesian economics is not worked in three and a half years the government has been spending spending spending we haven't had any spurring the economy we have.
You know unemployment -- above 8%.
Then somebody forgot Milton Friedman here somewhere along the line.
And this whole philosophy is is wrong here you gotta remember in this country for example it after -- Ronald Reagan we cut taxes.
In an 81 again under Clinton and -- before.
Both of those things help the economy back in both cases we had are strong recovery and that's what should be done today.
All right Tracy you know the president's argument here is that he is -- -- be extending the bush tax cuts for those families that are making under 250000.
Anybody above that.
Now the Republicans are saying that this is -- are gonna get hurt that's gonna hurt the economy or you stand.
That's small businesses -- that's the engine of our economy that's absolutely who's gonna get her and luck this heroes come out and said that 20%.
-- -- So called wealthy Americans are covering basically are tax bill how much more -- you wanna put -- earnings people.
-- working hard they aren't trying to make America better and all we're doing is taxing them you know what.
5% cut 5% across the board and -- you wanna talk to me about tax -- fine but let's see you cut -- spending and make it fair.
Everywhere you can't just pick and choose you know Chris even as McConnell -- to go one step further this week and he said this is a tax hike on small businesses.
This is a horrible idea this is the wrong direction -- -- right.
Well I mean here here's the reality AA in and I worked on these issues when I was on the into the hill you've got to do both.
Is this notion that somehow you're gonna solve this problem all anybody cut by cutting spending I hate to burst anyone's bubble they don't know -- I mean did the reality here is you've got to have revenues coming in when you talking about the tax rates.
CBO just -- -- a study tax rates are the lowest they've been since nineteen Saturday night.
Obama actually in his presidency is cut taxes you can he -- the -- he's cut taxes too much.
So I mean if we're serious about this responsibility we've got to get this back and some kind of balance -- Then that you had what appeared to -- your -- talking about cutting spending.
I mean obviously that is good for the fiscal health of the country but at the same well I'm not right Robin Wright -- -- The president doesn't think so the president believes that.
Wealth comes from government spending comes from government control that's why he.
Advocates for greater government spending at every opportunity despite the fact -- as you pointed out over -- 66%.
Of those surveyed understand that cuts need to be made and I mean maybe they're not Harvard MBA is but they've seen the carnage that happens in Europe the carnage and -- -- When government spends the bills ultimately come due in this whole notion the president talks about.
Giving people a tax cut.
History should work out those individuals richer -- have earned that money the president and giving them anything it's -- I earned and deserved to keep Rodriguez went women.
I just tears what do people want to cut not a you know if you listen as some of the people who talk about cuts they don't want to cut defense.
Right so that's a huge chunk of money completely out -- of.
That was sitting putt anyway but that's about to separate it gave -- then alters the telling anything.
Welcome bit -- -- it would take this to you here because what.
If we're talking about this this is -- president Americans say that we need to be cutting spending in the president came out this week and said.
Actually I'm gonna you know raise taxes at the end of the year for those families that are making over 250 and small business.
I mean at forty to the economy goes from there and -- doesn't that kind of hurt the country.
Yeah it's gonna hurt the country but it's gonna hurt the country either way Chris is right this is not an either or proposition Simpson Bowles which the president commission.
Had a plan to cut spending and also raise revenue but the president himself before this report even came -- had undercut these guys and nobody wants to do this plan you've got a -- -- right now in congress and Simpson -- Republicans Democrats nobody wants to cut spending nobody wants to raise revenue.
You have to do both right now and when he thought about raising -- taxes on the rich you're only talking about forty billion dollars a year.
That's -- nothing right you look at one point three trillion dollar deficit this is not a panacea.
If you political ledger to go out the -- that's -- Wayne isn't an if our proposition that is John the John Michaels says that you have to do about there's got to be a balance that is not possible.
Well I I think John is right but they did it's no political courage to do -- the other -- and we have spent ourselves right into the toilet and nobody was willing to cut.
And well Chris you asked the point where -- you cut I could tell you right away and you give me that budget I could go through it like has like their -- last night.
Leave me at you have.
-- -- know how much they waste just look at the -- don't quite take what does that from Oklahoma the setup from Obama he publishes a book -- our -- Weiss didn't just took the -- out of the -- you the government is spending outrageous amounts of money because we are we're -- bureaucratic -- run.
The good thing the congress doesn't run the country any more -- -- the event that there wouldn't they remind us.
Then you had that kind of I don't run back bureaucrats and the bureaucrat the ones who would still wins and -- -- I guess.
They're got a good but let's say how much how much taxes that we -- how -- cuts that we need -- is we -- it's almost like saying how much poison do we need OK -- mean we all want wealth to be created this country where does that come from -- come from taxes -- comes from.
Three independent individuals people's minds putting money to productive work it doesn't come from governor -- redistribution of wealth which -- what the president's -- under tools.
Happy about our national -- -- -- -- cutting spending is it's still connected to boats and that -- the problem with our system.
Quite frankly there -- term limits we wouldn't have this issue at all get and get it now.
And they would not be reliant on the next reelection because nobody wants to cut their little constituents money that's -- make -- there cut across the.
-- that is the whole point -- Tracy is exactly right you're talking that's boring forty cents out of every dollar that is a massive amount of stimulus that is in this economy right now no politician wants to cut that tells you look at Spain.
-- -- France you look at Greece when you start -- that much out of the budget it is going to hurt the economy but if you don't do it.
And you -- lotteries aren't.
The -- that was in California -- I don't think.
-- -- -- -- -- -- There's another important point to kind of thing keep in mind if we're really wanna be brutally honest about this I think there is a -- amongst the American people.
To hold not only the politicians accountable but to be honest about what needs to be done.
We faced serious fiscal problems I like I said I worked on the east in what made me want a Turkey have pulled my hair out.
But the reality is if we're gonna solve them we have to do both and just know that you can do this just do spending cuts I can tell you -- it is simply -- it.
The American Chris -- the failure rests on the American people the American people know what there's been no that I.
Perhaps I was uphill battle it's all right that's not -- -- -- the other way that's not what I'm saying I'm saying that we've got to be honest about the problems that we face the car -- he's probably gonna spend the American people left and I.
I think to give -- -- American people a real disservice here are my friend about doing about saying that because the American people understand you have to stay within your budget.
It -- start I and I see it's what they've got blown -- -- when you look -- when you look at polls when you look at polls and those polls say that you can solve this problem only through spending cuts.
Part of that I think it's a failure political leaders and others to be honest about what needs to be done but listen these are tough tough problems we've got to accept the fact is -- because.
I also -- -- be ready changing you know what.
Chris glad to say -- that gets pretty instinct even you said it was like a nightmare trying to deal with the -- in Washington and that's you know it or everybody.
-- those -- great discussion thank you we'll coming out.