Would tax reform boost US economy?
Romney pushes overhaul plan
- Duration 8:38
- Date Sep 29, 2012
Romney pushes overhaul plan
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Well you knew this was coming in comes falling again a new report showing the median household income heading south last month.
Now down more than 8% since President Obama took office.
And our governor Romney's out -- saying his plan to overhaul our massive tax code we'll actually put more money back in your pocket but will it work.
Hi everybody I'm David -- -- can -- John Fox let's go and bogus is the man himself Steve Forbes.
Victoria Barret brick Conger Mike goes Avian ridge -- guard and mark ten G Steve what do you think and is running tax plan.
It's a good when it does two things one it increases take home pay.
Two income middle class family 2000 dollars extra in the take home pay.
And more importantly David it reduces the price of doing work.
Being productive and taking risks -- Matt price slowing tax rates that's the way get this economy moving work for Kennedy worked for Reagan worked in the early part of last decade it'll work again if we allow it.
Well -- Conger we have to do something since the recovery began by the way in June 2009 household incomes are down don't.
Five points -- that that's that's since the recovery when you're in a recovery incomes are supposed to go up.
Yeah I you know what's what's a little bit distressing and concerning -- I.
I have at this point don't know what governor Romney has a minus the points out he's been saying -- one's gonna be reducing taxes.
And then he shows that this week -- -- rising tax rates he says he's on taxes overall by cadaver rates and -- he shows up and he says don't expect a huge tax cut.
Because what he's going to be doing is -- deductions and exemptions great.
I wonder if somebody will get around to telling me what those deductions and exemptions are.
That he's gonna lower he's been running for president for -- seemingly half a century and none of us know yet what it is he plans to do.
I -- like get what -- is totally rich the bottom line of what he's gonna do a minus some of the specifics and and Rick is right it's not all the specifics are there.
He's going to lower tax rates by 20% for all income groups and get rid of some of these special deals.
And deductions that some of the big guys get.
We know not only did that median income fall but economic growth that was revised downward.
And David we should be enjoying 4% growth not.
Minus 2% growth that we've had during the Obama administration Rick Romney may have been running for president forever but Obama is -- president.
3 I am I -- and see if you remember the look that we happen again we some of you know we're we're gonna get the median incomes up unless we get overall economic growth stop and tax simplification and regulations simplification.
Simply has to be done and Obama takes almost no interest in this in fact wrecked one as the last time you haven't heard.
You even heard President Obama talked about.
Well let's let me let me actually -- -- let me switch to mark now mark what do you think of the Obama tax plan.
-- look I don't know if Obama has really attacks planned but I don't think the problem is taxes here think the problem is as people don't have an income.
And reason they don't have an income as they don't have jobs we have a demand problem in the economy.
Not a tax problem and cutting taxes if you have no way come does that make any difference so we need to stimulate demand -- stimulate demand will we can go out about it -- a variety of ways -- cutting taxes is not gonna get us where we wanna go well but Victoria event the message of Mitt Romney -- a lot of people is that if you overhaul this very complex tax code.
And get the incentives back again that will help a small businesses particularly go out.
Build their businesses -- hire more people.
And I think that's absolutely true business owners small and large are holding back.
They're fearful that they're gonna have higher taxes down the road.
On their own profits and also just on the cost of hiring a new person they're fearful that those costs are gonna go up in the -- of taxes and regulations.
So mark I agree with you that -- a demand problem but taxes are at the center of this.
And Romney is actually sending a message to business owners that he's looking at reducing those burdens -- hiring and that's what we need I mean we've got.
Lower and higher unemployment than when Obama took office and we -- really low workforce partition participation rate and that's really troubling because those people are just deciding not to work.
And that's where you gonna get higher and higher cost of entitlements in this -- And my head of the main problems for most of us who were lucky enough to have jobs is the money in our pocket is less there was and it's -- -- to write the value of the dollars falling considerably under President Obama because all the money printing he's done.
But what Romney under all the money burning a Ben Bernanke has done supporting the treasury in the borrowing by Obama but what Romney understands David and President Obama is clueless about is is a big difference between tax credits and tax rates.
Cutting tax rates gives you incentive to invest in plant and equipment which then allows you to hire people because you gonna get to keep.
An extra amount of money on each dollar of profit you make.
Cutting tax credits does not heard incentive because tax credits are temporary and does not encourage investment well Steve I wanna keep it on the simplification -- -- that somebody I can identify with.
I haven't done my own taxes in a long time in a reason isn't because -- it's just too complex.
And I'm not a small business if I was a small business I'd have to do to devote hundreds of hours of time a lot of money to figuring that thing out.
That's right the IRS has figured out David that last year we spent six and a half billion hours filling out tax forms the equivalent of almost a two and a half million full time jobs.
The cost the economy 300 billion dollars a year huge waste of brain power and so yes tax simplification is actually essential.
By the way Paul Ryan the vice presidential candidate has even better plan that he had than Romney has and that is that jump that -- Have two rates after exemptions 10% above a 100025%.
That would get this library -- -- -- bottom line is is that we'd all be better off would we not if it was a simpler tax -- what Mike was talking about all of these.
These tax credits and stuff that that present -- has put in.
Just add to the tax code they don't -- don't make it simpler or smaller.
I can get behind a simpler tax cut -- I -- I have to tell you I'm still suffering from the ripple in the -- felt when David hasn't told me I was right.
If I'm never happen I'm not.
I'm not liberal -- a million -- but I cannot write a book but I also think it's interesting that Steve pointed out that he likes the vice presidential candidates program better.
Then the presidential candidates program.
Isn't that the way this seems to be shaping up this election all of you Republicans seem to want Paul Ryan to run for president but he's not.
March edging by the way I'm not a registered but -- -- to get that on the record I heard you say Knoll will win that the idea of tax on the gain was gradual why exactly what -- want a good thing.
Look were all world.
Basing this argument predicated on that were lower tax rates are gonna stimulate things.
Companies are not using that -- industrial capacity that they have now.
They laid off workers because there's no demand.
He cut their taxes it doesn't mean they're going to -- build another factory if people are buying their goods.
It's lunacy to think that in this would fix the problem more whether it be tax simplification or cutting taxes but -- not a tax problem it's -- really broad look at -- -- -- in the twenties look at what happened in the eighties even when Clinton cut the capital gains rate investment went -- gross fixed capital investment in the second quarter in this country grew 0%.
That doesn't happen during her Recovery Act only when it comes a -- and had a law you meet you -- -- all of our I had quickly quickly mark.
We've had a lost decade and a lot of that we did cut taxes and we did not -- -- on air I.
Bush putting the second round of its tax cuts in 2003 through the end of his presidency.
He created over two million jobs in this country and Steve when you look -- and I -- I guess it's just the most important and -- is when you go back overtime trends over time.
When you go back to 1983 you look at that long period were median income went up.
During the 1980s it also dampened by the way under President Clinton with a Republican congress so.
There are times in the past thirty years when we have had a steady increase in the median -- -- -- the F tax code is a huge wedge -- huge barrier to production and demand you don't get demand without production you have to produce and ordered be able to buy.
And a lower tax code -- -- have less -- out there less of a burden and people do more positive things okay folks thank you very much.