Should lame-duck Congress decide long-term tax rates?
Economist Art Laffer weighs in
- Duration 4:45
- Date Jul 25, 2012
Economist Art Laffer weighs in
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So guess what their fight over today a battle over taxes will hit the senate -- today Democrats argue the wealthy should pay more those making more than.
Dollars a year Republicans say extend the tax cut for every American.
Meanwhile the White House claims -- congress fails to act.
Middle class families we'll see their taxes go up an average of 16100 dollars per year.
Art levers of former economic advisor to President Reagan -- morning -- in Nashville Tennessee.
They're good top party -- -- -- -- today I'm doing fine thank you said the lions are being drawn and some would argue this is largely symbolic more of a political message any political year -- question.
Who blinks first.
Well I think the Democrats blink first but it just to call this extending a tax cut so silly.
These tax rates -- have been in place for ten years this is raising tax rates that's all it is.
And what the Democrats want to do is raise tax rates on rich people on dividends on capital gains.
And the Republicans don't want to raise tax rates on anyone.
And I just don't understand how you would want to in this terrible economy.
Raise tax rates.
And especially not on those guys for the job creators of the employers -- so you -- -- our candidate and yet you think Democrats like let me get back into the second do you think this is work out before after the election politically speak.
What it should be worked out after the election and I think it will be.
Why would you let a lame duck congress and may be a lame duck president decide tax rates going forward forever.
Why should we we the voters get the right to choose our new congress a new president may -- And then make the decision whether we should have tax increases or tax increases it's much better putting it off the -- the voters decide rather them.
-- cronies at the back from the side and -- I guess -- about anything tomatoes still -- twenty minutes ago I was making the argument that -- the -- word word were ahead Iraq Baghdad on the same path we came from.
We -- -- here but also in Europe.
Says so if you believe -- Democrats blink what would be the effect on the economy.
If while Democrats got there already is taxes were raised on those -- more than 250000 dollars a year what will -- you democratically economy.
Yeah well I think there's a huge tax -- right here and no matter what happens you're gonna see a very very bad 2013.
Because a lot of people have already -- a -- anticipated tax increases.
Have shifted income in the 2012 out of 2013.
And there are just millions of ways of doing that.
And I think it's going to be a very large effect and we're gonna go right straight south.
Starting on January 1 2013.
No matter what happens you know on the but I probably within the -- -- -- yeah the policy just terrible -- but how do people perceive this battle.
What what when the White House makes the case that if -- middle class American family you're gonna be out 16100 bucks starting next year.
Well let me ask -- -- question though I mean I do you think we should raise taxes in this economy is that makes sense to you have you ever heard of an economy be taxed at the prosperity.
I mean it really is just dumb and know taxes should be raised in this economy period.
So anyone who wants to raise any groups taxes I think -- make it a big mistake I believe -- -- in the house today.
If you will have hours they -- me forever.
-- -- power in the house today.
I would make the tax but that extend the tax cuts that they call for everyone I'd let the president be -- let -- Murphy Murray.
It burned it down on this senator Patty Murray yes that -- me I'm sorry it's our idea but.
-- -- -- I just don't see the logic of all of -- stuff I don't think it worked well for a bomb in 2010.
When he did the same thing.
And he got slammed in the house and in the senate.
And I don't think that's what -- nearer to his benefit this time -- and I know I carry are less than a year and economists are but one last question on this as you pillar gauge the landscape Weathers in Nashville the rest this -- Tennessee in the country.
But he thinks winning this argument -- can you say whether it's Romney -- Obama.
I believe it is Romney and I believe it is the Republicans because.
It might just simple thing as I've never heard of raising taxes and the bad economy is making sense we should extend all of those tax cuts.
Period and we shouldn't be doing the obamacare tax increases either.
Which by the way are nodding and being discussed them about their hosts large numbers of other taxes coming in.
On January 1 and we'll see if it was the only mention we'll see how it all goes down -- thank you for your time we well art -- excited those that -- right now.
It's an election year it's like sports for us -- -- winners and losers and strategy of both sides.
But the outcome is absolutely vital for the direction of the country -- thank you talked Jesus when he minutes thank you very much -- -- -- --