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Obama pushing for 'balanced' solution to tax rate battle

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    Economist Art Laffer sees president's words as a 'wonderful sign'

  • Duration 4:35
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-- just go back to Washington now because President Obama may be signaling that there is some flexibility in the battle.

Over raising tax rates -- is yesterday.

I am.

Ready and able and willing and excited.

To go ahead and get this issue resolved.

In a bipartisan fashion.

Says that American families American businesses have some certainly going into next year and we can do it in a balanced and fair way but our first job.

Is to make sure the taxes on middle class families don't go up.

Democrat -- President Obama is also saying that he wants to raise taxes on families earning more than 250000.

Dollars.

But that move would only generate -- About 85 billion dollars.

A year that's -- drop in the bucket compared to the amount of US debt.

And that number is about what the federal government spends in just eight days and if he if he gets what he wants everybody over 250000 pays more.

It's gonna cover eight and a half -- is of the government spending.

A mountain -- say the government spending problem.

-- -- Joins me now architect of reaganomics good to see -- warnings -- are -- are you I'm doing just fine thanks and in Washington they've got a lot of work to jail.

-- as everybody knows and the question is you know whether or not this this tax rate issue whether or not the president has some flexibility on that.

Whether we go back to the 39%.

Or whether it would be a little less than that are you seeing any light in that discussion.

While it.

If he's willing to negotiate about the highest rates -- take that as a wonderful wonderful sign.

You know first place they're never gonna even if they raise the rates they'll never gonna get the money.

These people know how to get around paying taxes they hire lawyers accountants deferred income -- -- the estimates of 85 billion -- just wrong.

But number two these -- the job creators aren't I mean these are the people who hire all the other people these are the people who spend the money.

These are the people who have secondary tertiary -- -- Revenues -- facts so you're gonna lose huge amounts of money.

If you raise tax rates on the highest income earners.

And if he's willing to be flexible on that.

I am very excited and very pleased and I hope he's being sincere and be as I think we can get a good deal done that won't hurt the country.

Yet this is to -- a debate going on on the conservative side of the fence over what Republicans should do.

You know Charles Krauthammer was basically saying less you know -- either way you slice it.

You -- you're not gonna look good in some respects you know if you go to the table any compromise need giveaway -- Republicans are supposed to stand for then who are you know.

If you hold the line and then you're seeing down the road is being obstructionist and they used to in the land a deal right that's also -- and he does so he says one I want to just go for the first option.

-- -- I what I.

Really liked about charles' comments yesterday was that he said that the one thing Obama cannot afford to do is have a disastrous economy.

It is in 2013.

Already the economy 2013 looks to be bad.

So I think Obama really does need to get a deal as well and I think if the Republicans and the Democrats could get a deal that thick acceptable to both.

I would be very happy event Obama owns the economy in 2013 in 2014.

And then we'll see in the off year elections -- can -- it.

You know and we'll see what happens in 2060.

Erskine Bowles made some comments about how to put together a deal and he basically looked at where the numbers are.

And say you know you have to Trimble's -- a little -- he's that I see I see women here -- deal.

Do you recommend.

That kind of compromise and you know what would it need to -- bombing in your opinion.

-- only bringing money into revenue through eliminating tax loopholes and not through raising -- It's well what I would like to see doing I'd like to see us lower rates and broaden the base just like the Simpson Bowles -- it.

I would like to see in 1986 tax act then I would love to see spending were struck the reductions.

A you know a low rate flat taxes not only fair it's also efficient it creates prosperity it's worked every single time.

And that's what they should do now how you play it politically.

You know that you have to be on the inside to understand but I don't mind the Republicans coming to a deal as long as they don't give up there.

Opposition to raising tax rates and a low rate flat tax I love a low rate flat tax.

Will say.

The presidents and Asia and a level playing field.

Level tax rate till yesterday at age I didn't seem to be referring to that but maybe -- will and that's what not act and the broader picture will sink.

I thank you very much take you very much but it is.

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