Budget battle: Tax hikes or take a hike?
Senate Democrats propose new spending, taxes
- Duration 8:26
- Date Mar 16, 2013
Senate Democrats propose new spending, taxes
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As bold and it lets get.
I do I bubble that bears this week.
Gary B Smith Tobin Smith Jonas Max Ferris John -- field back from his her runway mountain climb along with your new green.
Welcome -- everybody okay Gary be Democrats still pushing tax hikes is that why most companies are still my -- Absolutely -- all they have to do is is either look at history -- look at.
The state they reside in -- state nearby because Percival on the state level the states that grow the passes and create the most jobs.
Are the ones without any -- -- tax.
Even looking back historically you know we've had this discussion many times.
-- every time -- cut taxes the economy has grown whether it's not on the left with president Kennedy or whether it's on the right with Reagan.
That left comes back and says well yeah but could raise taxes that we did great during that but.
What's often ignored or two things Clinton actually -- The capital gains tax and he also cut spending.
As a percentage of GDP.
The Obama administration wants to go the opposite way if they do they're gonna make FDR look like a libertarian.
OK give me -- do you agree -- tax that tax -- good or bad for jobs and the economy.
Well Brenda I don't think the president said that they should take a hike inside the tax heights don't happen.
Our biggest problem right now are the spending cuts.
And bigger than that actually -- that job losses so I -- talk about tax cuts a huge tax cut that we should see happen.
Is the government should give a big tax -- -- companies so that they can hire new workers that's what our economy needs.
But spending cuts focusing on the deficit that event that's moving us in the wrong direction so -- we'll talk about tax cuts.
Let's get let's give the corporations that are sitting on a record.
Profits that Dow Jones closed at a record highs let's give them a tax cut to hire new.
Workers OK tell -- tax hikes really -- the issue here that's what dams are calling for.
Is this the time with the head with the recovery -- so -- to do that.
Well no but remember the president did say you know some -- paraphrasing that if you don't -- these tax hike though I'm not gonna do budget so you can't cities -- playing games here.
But looks -- it let's look a little historical perspective we created the most jobs every United States.
In 95 to 2000 in that time for a -- cutting the taxes.
Or -- go paint companies to hire people attacked critics though what we do though is because we will hire somebody that's an investment when you're making it personal we lowered the capital gains taxes and that allowed people -- -- look at -- -- investment successful I'm gonna keep more that would then we'll generate capital which I will bit used to hire more people we don't need your tax credits that that's not what people are -- high because of the investment.
OK Janice can you cut spending an effort you need some tax hikes even in this -- that are Harry.
You definitely need we -- had -- tax increases this year in some of them are on hiring which is the payroll tax returning to its old level so there are some -- on the economy and we're gonna need unfortunately more taxes to close the gaps.
-- companies would obviously like taxes below we will spend more but they also don't want your comedy -- -- you can collapse of economy.
On too low tax rates like Ireland or you can do it too much spending like Greece and they want the economy to grow -- not go broke along the way.
And some mix of spending cuts and tax increases will hopefully lead us down that path and avoid a Japan path Regis spending more than you take in the deficit never goes away keeps growing -- the economy stinks the whole -- -- -- I don't know which player was edited both the magic in my opinion one wants suspend -- -- raise taxes to -- -- artificially high and have a debt.
-- the planet wants to some -- lower rates point 5% and like that's gonna balance a budget on the road so.
I don't know what's planned or smoke company -- point -- -- okay mountain climbing John you took out big -- and that hot one up a big mountain kids acts is got a lot to do.
That is now -- -- they shouldn't and not a lot less we're going to pay off the debt and I'm not sure that is the way to go about it look or raising trillion dollars in taxes according to the democratic proposal.
-- increasing spending by about 650 billion dollars the only raising taxes they can raise spending also you're not paying off the deficit.
Look at Florida and look at Texas governor Scott Governor -- -- advertising all over the country.
Company states some of these states we don't have to pay state income tax and that's where businesses are moving that's what businesses -- -- -- on that was certainly.
This democratic budget is the biggest choke I think I've ever seen.
Ten year so now you're still running a trillion dollar deficits.
Nothing's being -- is it's horrible can now.
Well again the deficit is not our problem we we have to find the resource is still have to play -- -- -- Yeah absolutely none of it is not biggest problem it's not our biggest problem you're making -- -- out -- -- mall or else we do.
You know man out of -- -- I think with its spending.
You have liquidated and -- they aren't valid so impressed with their balance approach where you are seeing some taxes go up.
Is going to help us with the infrastructure spending that the economy needs would be able to then help the states in the cities the local governments that have had massive budget cuts.
That's up and down our -- that -- -- that would work.
That I'm sorry we got -- we gotta focus right now we're talking about tax hikes OK we don't want -- about spending cuts on the -- you wanna talk about tax hikes and Gary would be.
Respond something to this right now I mean where is and recovery that is not doing very well.
You've shown us the historical side of things but right now my second and do you.
More than -- had really and it had -- I don't know how many more arguments the left needs to hear that tax hikes don't work they keep going back to the same.
Well and -- you go through history Brenda.
I hate to keep pounding on it.
But a lot lower taxes whether it's in Europe.
Whether it's what candidate did whether what's the states do is the way to grow the economy when we raise taxes we give the government more money.
The government takes our.
Our money which we spend a efficiently and they -- -- inefficiently unless what is raising their hand and take.
My gosh -- part of agriculture really is the better way.
-- spend our money them we have to spend -- money well apart.
The -- expensive so efficiently we should send money there were no one can make that argument -- -- -- -- scratching my.
Again it may have if you just look at tax hikes and you -- you take -- historical perspective.
Well it's almost like we're going to the Democrats are going back to -- 1980s you know what we dug up a bit of a good economy that you could raise taxes on certain parts we did that -- still -- -- there because we had five or six people working for every one person as a beneficiary.
Today if you make those same tax -- you have one person or two people working for one beneficiary.
What we can't afford it I mean they're they're pretending to zip archive is the same was in the eighties and tax hikes have a completely different effect today well Tony we -- -- -- the -- -- as well.
We talked about it so apparently the worry about right.
Well it's worked so well so far so I would say technically hasn't worked and continue doing it again and again and expect -- different outcome.
-- -- I don't get a tax cuts and works so great either in the last ten years of both flawed because they're not -- the spending habitat because fit less spending.
In my -- dive -- that's my point look there's no question a company who wants to sell goods and the American consumer would prefer if those consumers were taxed at a lower rates and it's been more money most people will spend more money the -- their taxes go down.
It will start to spend a little less or up to borrow the difference what we've seen is here with a payroll tax increase that doesn't really give 5% tax rate for the next ten years to make the economy better is it long winnable -- itself -- -- we won't have the revenues to pave roads -- -- -- -- so.
There's a balance that we want -- gradual tax increases that don't kick it won't economies just coming out of a bad time.
Yes we definitely -- -- -- says -- everyplace else the world Jonas says that.
That and Ireland but -- -- -- -- that you want our economy would collapse because they didn't bring enough tax revenue.
The -- is spending and it caused the housing bubble because they're cousins.
-- what happens.
All right guys we're not talking about Ireland and so our day all right -- --