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Former Reagan economic adviser Art Laffer responds to president's argument
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-- President Obama slamming the Romney Ryan tax plan saying that the Republican ticket is just trying to trick Americans he says into thinking that their policy is.
Are gonna work here's -- he sat.
There have been trying to sell this trickle down snake oil but all of and guess what it didn't work then it won't work now and you know secretly I think they -- it's.
I think they know their plans not very popular.
You can tell that because.
They're being put it -- asked about my point.
Especially by the way when it comes to Medicare or not they give us some but I've got to.
Point out here because they are just thrown everything at the -- the -- expects.
I -- former Reagan economic advisor an architect of reaganomics -- -- is secretly know that won't work.
I know I don't.
That but thank you for asking me.
You know he was of the -- -- Chicago he should have taken some of the economics courses there when he was there.
I -- trickled out economics which is the pejorative way of calling supply side economics.
It really did work it worked under Harding and Coolidge we have the roaring twenties then you had Obama -- makes during the Great Depression.
And then you had a course Kennedy with his.
Supply sire trickle down economics beautiful it was called -- the Kennedy go go sixties that you had before stooges Johnson Nixon Ford and Carter where the Obama economics.
And then you got Reagan.
With trickle down economics -- supply side economics a boom that you've got Clinton with supply -- trickle down economics which for the blue.
And now you've had bush and Obama with sort of the same type of bad economics and the results are.
Are pretty terrible -- -- What can I tell you I area -- take a course in economics at.
It eat you know I mean here here's what I see on the on the campaign trail it's -- it's a compelling argument if you tell most.
People in America in if you say look the rich folks are not paying their fair share and if we could just get them to do that.
Then you guys wouldn't -- so rough and I I think most people here that -- Access to many right I mean if you're not that category you're gonna say why shouldn't they -- -- Well it's the question is that you get the bottom half the doesn't -- -- I mean -- no income tax collected from the bottom half.
The top half and 2007 -- look the top 1% paid something like 40% I mean there's only so much more you can take.
And if you take it these people know how to get around that mark that.
I mean these are the people who create the jobs the -- the employment so if you -- acts that -- closing down their factories closing down their operations.
You're gonna get exactly what -- Is that.
Is some of the plans that we've seen me in and this is involved in that -- plan as well I believe.
Is that it would lower the tax rate for the wealthiest Americans it would also lower than -- -- corporations.
But.
I mean we're we're hearing that a lot of the loopholes that you just reference to would be caught short -- those loopholes are gone for corporations and for wealthy Americans you are gonna generate revenue into the tax stream and and I think that's something.
You know -- if you take away those -- -- I think that's something that people could you know could relate -- And wouldn't mind hearing more about.
You said it perfectly -- but that's exactly right that's what we did with the 86 tax act we drop the highest rate from 50% to 28%.
Got rid of all these deductions exclusions exemptions and loopholes all the votes which may have an idol -- more taxes.
Yeah they -- they -- a lot more tax -- we got people off the unemployment rolls onto the tax rolls on the growth fund output on employment.
And you know it worked beautifully and the Democrats supported us Joseph Biden voted with us.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- All of them understood these people know I mean if you wanna -- the truth about Obama.
He knows he would never run his family budget the way he runs our country's budget.
-- none of them would ever run their family business the way they -- running our country's business it's just bad economics it doesn't work.
And we've got to get the supply side pro growth where people get rewarded for doing well.
Do you feel content they opened up -- Ronnie Ryan would do that I mean that they would be able to pass that kind of plan and that they would be able to institute.
The real kind of tax reform that we're talking about here which would flatten out the tax -- considerably.
And we get rid of those loopholes we're talking about.
Yeah I really think that's true I mean.
I'm a big fan of a Mitt Romney -- I've known him for a long time I think it's a very good person.
And I think he'd make a good president but his experience is all in the private sector with a small stint as governor.
But if you look at Paul Ryan Paul Ryan's experience in the public sector really completes the sort of Romney Ryan take it.
They will together lower rates dramatically broaden the base and you'll get a Reagan style boom.
You'll get a Kennedy's style boom you'll get a Clinton style -- I mean.
No one really understands what Clinton did but he cut government spending.
-- his full eight years in office by more than the next four best presidents combined in the.
It's going to attempt to put a little while -- that went into that category and you put bush in a video -- category in transit spending so you know you really coming up this and do.
A very bipartisan historical.
Nonpartisan as to say historical and it just economics yet it's just an economic well it's interesting to talk to thank you so much we'll -- -- thank you very much.
