Former Obama adviser debates O'Reilly on taxes
Should the wealthy pay more in taxes?
- Duration 5:51
- Date Jul 17, 2012
Should the wealthy pay more in taxes?
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And that's -- -- -- enough -- that I reaction -- in Chicago doctor Aussie rules we former economic advisor to President Obama doctor currently teaches at the University of Chicago.
So where my gone wrong here professor.
Well it's good to see him -- I think you went wrong and perhaps in two places the first is.
If you look at how much of their income high income people are paying in taxes.
It's not -- it's actually dramatically lower -- look at the 400 highest income people in the country.
The amount of their income they're paying in taxes is about half of what it was fifteen years ago so.
It -- -- class warfare when George Bush cut these taxes and nor would it be class warfare to have those those rates go back to what they were under Clinton.
Yeah but there are a lot of other taxes says that -- and play as you know under Bill Clinton I have I asked my brain room staff to put together.
A list of new taxes that President Obama.
Is you either passed or wants to pass and are staggering.
And it taxes that people don't know about so yes you're right on the income tax level.
Is less than the 39% plus under President Clinton.
But the other taxes property taxes state taxes all of the other taxes and zoomed up to a level.
And now the president wants to raise -- Social Security tax he wants to raise the capital gains tax he wants to raise a tax on interest.
To the level of your income tax he wants to do.
Any other time in the history of of this country three I don't know what -- -- in the number that's not -- -- and I can't agree on the numbers let's see if we can agree on the philosophy which is really what the debate is all about.
The president wants social justice re distributing.
Re distributing the wealth.
From the few to the man.
I don't think that's no I don't think all right well then why does he wanna do it all the money -- -- wanna pay down the debt with it.
-- -- -- -- -- -- -- -- -- -- -- That's what I was gonna say what I thought was the second.
This the second place where I think at tiger going wrong in the year in the original statement.
In the president to do when they -- and we're having that discussion of the grand bargain.
The president would like to.
Have one trillion about 25%.
Of the long run fiscal consolidation come from new revenue.
Granted on high income people.
And three quarters of that about three trillion come from spending cuts.
On entitlements etc.
that we use that revenue.
As part of a means anybody.
President put forth a rare -- about forty years he said three and a half years there have been no attempt to reform the entitlements.
-- specific cuts in any of what you -- discretionary spending we just don't know what he would do but look.
Here's the bottom line -- all the discretionary spending he's well in years he's Roland and Donald dollars all right he's rolling the dice on the economy.
Because his vision could very well fail.
And of all of these things got past the economy could just collapse because he achievers -- -- not gonna invest anymore money I certainly would not invested level I am now.
With a 40% hit on anything that I make I'm just pulled it back are put in volcanoes are put in Switzerland -- -- -- place -- I'm not put it in -- I know you say that but when Ronald Reagan was the president three quarters of the Reagan administration.
The top federal rate was fifty Brazilian that you -- as well as -- an astute.
Professor of economics you know.
That I know rich people paid that rate that there were all kinds of tax dodges that you -- get around and that -- true in the fifties and the sixties and seventies and into the eighties.
Now those things are -- -- and how President Obama wants to cut them back even further he wants a cut back all the deductions for the wealthy even.
To her on the banks -- great so I want I want don't pay 6065%.
Stated well sure what a lot.
-- all O'Hara said that come into a for obamacare are enormous okay you take the -- -- off off the payroll tax Social Security.
My my taxes go up another 5% its -- it's really been insane.
To do that to -- people just look at over how much of people's.
Taxes by paying and -- -- -- how much of their income they're paying in taxes.
It's not actually higher were -- the Congressional Budget Office the same report you -- -- right showed that people are paying the lowest share of their income in taxes.
That they paid in more than three decades it's not does it matter if the percentage of 5%.
Our handle and 65%.
Of the tax burden com.
-- but that's only the inbounds tax that's not counting the payroll tax which is what most ordinary one income taxes are big -- and under president Obama's proposals.
That would go sky high across the board.
I'll look it it's 60% professor.
And I'm not gonna do -- -- -- -- we watch in Chicago bail.
-- you wanna live in New York we'll take you right here I'm glad you could not handle browser that I tell you that our professor one last question.
I believe pres -- is sincere man I believe that he wants.
A much different type of capitalism in this country then we have -- Am -- wrong.
-- the last eight years yes something is something different from that not different than what we've had in the history of the Kudlow remember the founding fathers didn't want a strong central government.
At all and there was no income tax -- the feds until the turn of the twentieth century -- -- it's always good to debate with you thanks for taking the time.