Fox News
Expand
Browse All Video
Watch Live

You're watching...

Analyzing the candidates' tax plans

Details

  • Description

    Obama, Romney spar over numbers in first presidential debate

  • Duration 3:52
  • Date

Clips

Also in this playlist...

Elections

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

Well more now on the first presidential debate and we saw some major disagreements between President Obama and governor Romney when it came to the GOP nominee's tax plan.

And how it would affect our skyrocketing.

Federal deficit.

Listen I won't put in place a tax cut that adds to the deficit that's part one.

So there's no economist and save it -- tax plan -- -- five trillion if I say I will not add that the deficit when my tax plan.

If -- lowering the rates the way you described governor.

Then it is not possible to come up -- enough deductions and loopholes that only affect high income individuals to avoid either raising the deficit.

Or.

Burdening the middle class gets its -- it's arithmetic.

So which candidate had the upper hand and how much of this was accurate with us now Michael -- -- he's the associate editor of the financial weekly Barron's.

Which is owned by the parent of this company you know Michael in a nutshell Romney says look if you lower the tax rates across the board what happens is.

Is that businesses have more money and businesses have more money they can hire more people and then guess what everybody starts paying taxes.

And that's how you gotta close the deficit true.

While it's true that that's what he's saying it's true that you know that's the -- one model would have it all play out.

The question is just exactly what assumptions go into that assertion that by lowering the rates and obviously on some level you know lowering immediate revenue probably.

Because he hasn't detailed all the 100% -- -- -- terms -- closing deductions and everything else.

How exactly that accelerates the economy to a point where all of a sudden you're making it up on the back -- Yeah and the president again and again Michael said you know of the big governor plans to raise taxes or lower taxes by five trillion dollars -- a couple trillion on top of that.

And of course this is how governor Romney responded let's play this -- get your reaction.

I know that you and your running -- keep saying that I know it's a popular thing to say with a lot of people.

But it's just not the case but I got five -- I'm used to people saying something that's not always true but just keep on repeating it and ultimately hoping I'll believe it but that that is not the case.

And really when you get that five trillion number of Michael it was kind of extrapolated from one year -- there there really if this is also kind of blown out of proportion.

Well the five trillion dollars is kind of went from what we know of the plan and it's a third party estimate of the ten year effect by the way so you have tremendous number of assumptions criticizing the economy.

Between now in ten years from now that's where the number initially comes from.

It sounds by the way like a more enormous number in and actually is but that's debate for another time.

That really what it says is you know.

You have to have certain trust in either sides assumptions right here -- honestly what's interesting to me is when Romney kind of went to.

Continually going back to that segment of small business owners.

That do you pay at the income rate on some level.

The reason we have to talk about then he almost told you this he says well why bother with these tax cuts.

Of the rate if you're just gonna make it up on closing loopholes and deductions it's because of that sliver.

Of employers that pay that income rate that's the only kind of way to do it otherwise if you're either getting revenue or cutting anybody's individual outweighs what's the point and I think the point is -- saying small business of carriers to have better economic -- Short -- we already know that look that the president can raise taxes on everybody who makes more than 250000 dollars of that you can take it all you're still not gonna close that deficit very quickly -- You're not and the fact I think on both sides people -- -- overestimating how powerful instrument -- tax policy is either on economic -- -- on closing the -- that I feel like it's just not that big a swing factor in this environment.

Michael said toll -- Barron's Michael good to see you.

Thank you.

Load More