CBO report: Dem. plan to stop sequester would raise deficit
Art Laffer breaks down strategy
- Duration 4:13
- Date Feb 28, 2013
Art Laffer breaks down strategy
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I -- just 24 hours to go now until that 85 billion dollars in spending cuts begins to -- and it's a pretty long process as we're learning now.
There's a couple plans out there that would sort of organize a different way to handle those -- In the senate there is one there.
On both sides really but neither one of these substitute plans is expected to pass.
And according to the Congressional Budget Office which is a nonpartisan group that adds things up.
The Democrat plan would actually increase the deficit over the next two years according to that number says CBO -- Our laughter dies NASA economic advisor to President Reagan are good morning good to have that you're running back and only imagine how you're shaking your head at Ed what we're -- Lindsay -- it.
And -- here.
But -- even though neither plan will pass I guess it it deserves a little bit of attention to just talk about what -- are closing because congress is supposed to.
He handled the purse so to speak.
What do you think about the democrats' idea to substitute this plan was something that they think will work better.
-- I don't think their plan would work better but you know what it all is mark this just political posturing.
They have a real opportunity now to do something correct and really good.
They getting a grasp on entitlements and all of that the president with a snap of his finger.
Could have an entitlement reform that would be like Clinton's was in the nineties and lead to great prosperity but what they're doing is they're just throwing all these opportunities away.
And just trying to do political game playing which is really really very sad.
And the democrats' plan of raising tax rates and upper income groups and that's ridiculous -- You can't tell he's not going to be and -- -- -- rate there pay because they you know tax streets of Marty gone up as we know the -- the president assured.
Everybody that he wasn't interested in raising taxes again on the wealthy but now this this this report that is supported by the White House apparently.
It looks like -- just raise taxes again on -- group.
It does I think it does it mostly by eliminating deductions exemptions that explosions.
But it doesn't do what the rest -- plans -- some some as a Simpson.
Balls and like I've de -- Rivlin they all lower tax rates as well as getting rid of deductions and that's the key feature.
-- you can broaden the base and that's all wonderful as long as you lower the rates but these people do the one half but not the other which would.
Which which would hurt the economy I mean it's just as simple as that yes they're just not being serious weather -- got.
-- sides saying well we want something a balance to wanna bounce approach and Democrats and when they say that they need more revenue this.
-- they're Republicans say they want a balanced approach they mean they want more spending cuts he got sort of read to the tune -- here but I I -- pretty interest -- the president.
-- according to the reports the White House was it was it was opened up to them look you can change this plan.
You can get your hands dirty in this and and you know.
Walk around with 85 billion and figure out some really good -- to do here and apparently they send button.
Not no thanks we're not what I -- it -- on that read why.
I don't know why I don't know why but we all I just wanna make it very clear Martha that we all want more tax revenues we all want it that's just how you get -- there.
And to -- that we should get it is by increasing economic growth.
By creating jobs to take people off welfare.
All of those will bring the deficit down dramatically.
I'm fully in favor of raising tax revenues but not raise your tax rates and not raising that taxes on people at this level of income.
I want to create prosperity and that's what the president seems to oppose.
In every single statement he makes and it's sad because you know this is the antithesis.
Of what Bill Clinton was Bill -- was great on this stuff.
And this president just isn't unfortunately.
A lot of the -- Bill Clinton was Smart pragmatic politician in terms of I voted -- -- twice there.
And -- -- -- twice that lobbed at my thought is a great present.
He never liked me very much whether that that's at VA care but the question is I want to ask you -- kind of see one show that whether walk.
It would you go for something like an economist walk around the same they are good idea what it's all -- wasting time slot somewhere -- ten.
Yeah we're regular people from my people are gonna range that will have the budget behind me with a stick and all that -- -- debt clock Perella a well.
Anybody if you you how -- And I act thank you -- we'll see if they ended.