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Ari Fleischer the former spokesperson for President George Bush joins me now on the phone Arrigo Horry.
I'm doing great job thank you for having me.
Oh thank you for coming on -- account I wanted to lay some groundwork here.
Who is paying the taxes in this country.
And who is not.
While other increasingly smaller sliver of Americans are paying taxes what keeps happening is as -- result all the refundable tax credits that are under the code exemptions and loopholes.
Under President Obama proposal.
Almost 50% of the country will be excused from paying any -- income tax burden so those are the taxes that support the military.
Clean up the environment build roads.
And we have gotten to the point of this country would fail almost a majority of people will no longer have to pay income taxes.
And instead just about 10% of the top those who make more than ninety's that will pay 72% of the income taxes.
-- people who make more than 68 that -- which represents about 20% of the country we'll pay 85% of all income taxes in this country.
Now just do fair is fair -- didn't President Bush to some of -- Keep it.
The problem you have -- every time that you cut marginal income tax rates and bush cut the lowest rates of 15% to 10%.
And they double the child credit which is a refundable credit meaning that even if you don't pay income -- -- get money back.
He took millions of people -- -- architectural.
Model -- used to brag that he took the -- to people opening perpetual.
That we had to trillion dollar deficits.
We need to realize that.
We no longer have a broad based income tax system so many people would take about the income tax -- That our system is no longer working properly to what happened when -- -- Don't bullet today Europe the -- -- recession like we -- today.
The deficit is going to explode into the trillions of dollars because.
People who pay taxes are the ones who works in artists in this recession and that's the 1020% to make all the money in this country.
The big money in this country.
Ari is is what is it the President Obama is doing.
To exacerbate the situation.
The proposal called make work pay tax cut he called the tax -- it's actually.
Checks 400 dollars per person 800 are a couple that are given from the taxpayers.
To those who don't pay any income taxes.
And that he's.
So he's lowering the taxes that you know.
And it takes what's currently about 40% of the country not paying income taxes up to about 50% of the country -- pay income taxes and has proposal agreed to.
So he's actually.
Cutting the taxes for people who don't pay tax.
That's exactly right and the moral problem we have here beyond the economic issue is it is.
Not it's just not right to about 50% of the country.
Off the hook.
We all have a stake in the national defense we all have mistaken clean environment we are -- -- building roads but what 50% of the country can be government spending that benefits them without paying yet it's a formula for runaway spending.
And that's what Washington has been doing for years.
-- Ari what we've always heard from.
Your side of the aisle and the Franklin mine is.
You want to cut taxes to encourage economic growth and that these people on the bottom end of the scale don't have a lot of money to begin -- and so if you.
Give them some money in the form of the tax cut or in this case refunds they're gonna suspended in churn the economy is in and that logic still hold.
Well my view is we need to do is abolish the Social Security tax abolished the Medicare tax about the that the payroll taxes abolish the estate tax increase instead.
A much more simple.
Progressive income tax cut -- earned income tax code where everybody in the countries expect to pay him and that's how you fund Social Security that's used on Medicare that's how you struggled to lessen the government's -- I would also eliminate all the lippold abductions of people the top take our system is so right for the loopholes and exemptions.
That even though.
Upper income people to pay the overall share of income taxes.
We have a -- that is anti economic growth this sort of for the most sacred cows but -- the 2000 turned into a pack of fools I was simplify the -- dramatically I think everybody pay brought in the tax base when -- brought in the text -- and eliminate the ripples.
You can actually at much lower tax rates and that's how you promote economic growth.
So that -- your thinking your your thing and as people make 40000 dollars a year who are down not paying taxes.
Should pay tax.
Absolutely they should pay income taxes everybody should pay income taxes in this country can I just don't know how you can let everybody's so what -- so much of the country off the hook and we need to pay for Social Security we need to -- for Medicare and I predict he looked funny thing what happened.
Once everybody stressed being cut taxes again in this country people will pay pay a lot more attention to world spending is going because now they're also foot the bills for all that's been that's the best way to reduce -- will Washington's spending where if you have any type of good cause now.
Washington will finally funded -- federal -- the private sector of the entrepreneurial ship for the American people without.
Well all right so what -- your saying is if that 50% of the country.
That is now you know cheering Obama on as he invokes spending program after spending program.
If they were paying some taxes there would be some political pressure on him to back off the spending throttle.
The common sense if you don't pay for anything but you get the benefit and you don't care how big the benefit is there.
Well while much revenue it Christian epics he just want to benefit.
If you -- things that all the so onion skin in the game and minister to have that well logical question is the -- doing any good should the government be spending in that field.
Or just some -- the -- the business of the government but 50% of the country as most know.
-- it because they don't pay income taxes.
But should secure a much better address that's the problem.
Now just who for years and years you know we've heard about Steve Forbes flat tax proposals is that is that where you're out here.
The only difference in my proposal that is as I would have a progressive system I still believe that the more money you make you should pay higher income tax rates so he would have a flat tax.
More war to have with a tiered tax little -- lowest income people -- be 5% herself they could be 10% rate in the fifteen or 20% -- but my goal would be to lower income tax rates as a result of getting rid of all the deductions loopholes and that's how we fund the government.
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