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How do lawmakers close tax gap as 'fiscal cliff' nears?

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    Washington goes back to work to try and strike deal

  • Duration 4:19
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Lawmakers now have less than a week to come up with a way to avoid these so called fiscal cliff.

If they don't.

You -- what happens and how much will it complicate things for taxpayers.

Join us now is Brian whisper is she's.

At first trust advisor you know it's charged me a bit -- people -- sort of between a rock and a hard place politicians.

All right what's the rock.

Yes that that though the rock obviously is this cliff if if we.

If we go off the cliff unimpeded in other words they they don't make any kind of deals whatsoever.

It's a four.

Hundred billion dollar tax hike it's one of the that the biggest tax hikes we've ever had in the history Bryant of the -- -- -- I.

-- the hard -- is the negotiation I mean you think about it Reid and Pelosi and Boehner.

And Obama all trying to come to an agreement that that.

They did that seems almost impossible doesn't it when you know -- are you close the tax gap.

Yet you use it right now you cannot do it you know -- -- that tax gap in at least in my opinion would be the deficit it's.

Over a trillion dollars.

If we raised.

Everyone today that pays the top tax rate 35%.

If we tax them at 100%.

On all the money.

That they currently pay 35%.

On.

And remember and I'm assuming that nobody changes their behavior they still work just as hard.

Even though they pay a 100% tax we would only raise 360.

Billion dollars in this coming year.

And that would still leave an 800 billion dollar deficit we cannot tax.

-- way surely campuses of meat we -- do the value added tax.

Well and and that's what worries me -- if we.

Don't cut spending spending right now.

The federal government is the largest.

It has ever been as a share of our economy it takes up more of our economy than ever.

The only way to pay for it is to put in a European style the value added tax which means that every American every one.

The lower income than middle income -- high income would pay.

Say 20%.

On every item they purchase every item to the federal government.

That's what the European locally that do -- -- these big government.

What would it do say that again what would it did that.

That what would happen is we would turn into Europe but we all see -- we see Greece and Spain and Italy and France.

They all -- slow they all have extremely high unemployment rates.

We would have a slow economy and high unemployment for ever.

If we -- ourselves like that -- this idea that somehow you can't tax the middle class.

Or or we won't it's impossible so that is a bad idea like we -- I get it -- can't act.

Have you achieved add value -- attack that I -- worst thing right so -- Brian what it what is the solution.

Yeah I I well.

If if I were king for a day and and told to make the economy grow faster I would cut the size of our federal government we need to cut spending everywhere.

Because it did the best our economy is done in the last thirty years is during the eighty's and ninety's and that's when Ronald Reagan and Bill Clinton.

Caught spending.

I would take the Clinton tax rates right now I'd take -- they really won't hurt the economy if I got Clinton's spending he spent.

13.

Less on on federal government then Barack Obama is today 13 -- we've.

Increase the size of the government by over 33 Brian I hereby announce you -- of today.

Each year -- -- -- back.

Yeah yeah that's I would hope -- only -- yeah it's it.

It bit but that's it what we're spending too much and the only way to it to afford this kind of this spending is to tax.

Every one and that's what I'm worried about that we're moving toward a value Brian -- very good to see it thanks so much good to see -- great tradition of great since.

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