Laffer throws a Curve at the White House
Former Reagan Aide Art Laffer discusses the ‘Gang of 6’ debt deal
- Duration 6:25
- Date Jul 20, 2011
Former Reagan Aide Art Laffer discusses the ‘Gang of 6’ debt deal
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I'm Charles -- effort judge Andrew and Apollo Connell tonight on the -- Meetings and more meetings out of debt ceiling as -- gang of six deficit reduction plan tries to get the will spending.
But what exactly is in the gang at -- plan well it makes room for tax -- But -- specific entitlement cuts it remains -- instead it sets forth a plan for yet another committee to assess what kinds of reforms should be made.
And many have that suggests that spending cuts would only put the ball and -- had to congressional committees and what are the odds we actually see those suggested spending cuts if the conservatives stick to their principles.
This plant should be dead on arrival so bad.
Where does this -- Senate Minority Leader Mitch McConnell plan being.
Or the Tea Party backed cut happened balance plan which passed the house last night.
Here to help us ordered all out his former senior advisor to President Reagan art Laffer you've got a big cup right there because that's opened up -- Let's start with the gang of six because yesterday when -- was announced the stock market took off in a felt like we have -- resolutions all the just.
But we don't have resolution and it's not precise but you know it is a good start darn it.
And Tom Coburn is correct this is where we should start discussions.
You know while the tax increases are there as you said Charles but they are.
But what they've also got -- tax rate reductions and tax rates are what were really really after the 86 tax act.
Which I consider really the culmination of reaganomics.
Was bring -- -- tax rate down the highest marginal tax rate down the 20%.
If we can get deductions exemptions exclusions and all of that stuff.
Removed and use the proceeds to cut tax rates I would supported every day of the week and twice on Sunday.
What -- we need to get spending cuts brought by -- -- are saying the art.
You seem -- like a little bit the Teamsters don't like hit.
What we're does this put the president because of course initially said he liked them but many admitted he had -- the plan.
-- that's true I think the present just playing -- game.
I mean frankly I watch him in this action and how is handling himself and that it's not very good I mean I love the McConnell Reid plan.
Which just puts all the burdens on the presidential is he's the one stop in the process and I know he's playing a political game and he's -- probably -- I mean the Republicans are looking very good in the polls are any of this -- bottom line is Mitch McConnell and Harry Reid.
Have a deal where they could get the present to propose that the Republicans could oppose it.
And we can get on to November 2012.
Where the real end game is going to be -- but -- -- -- people want this president Don they can happen.
Well you know I've been -- your point art all right you know you say the president's -- and a public relations game there's no doubt.
Recent -- seem to have -- before Americans are pretty adamant about not raising the debt ceiling I think.
Is that an effective job of scaring people -- -- -- not gonna get to Social Security check.
And we're gonna follow -- of them -- yet so.
That's silly while until we know we don't know catastrophe blowing out silly but it seems to be working why the GOP -- into -- -- why have they put up.
Proposal after proposal after proposal would -- that with the president's job.
Yeah it's not just the GOP by the way it's every congress.
And that you know the problem with congress -- -- house especially.
Is it's hard to control they're not Agile and flexible they're not able to change their minds.
You've got to get 240 congressman do agreed a proposal the president can -- -- -- convinces himself so.
It is not a good game for a big body like the house to ever play so the death -- shouldn't be the way they try to control government spending.
They should just try to look at the end game which is November 2012.
And see if they can make their case and I think they can.
I think every Democrat knows the Republicans are cracked on this idiots obviously can't go home -- your -- Stanley -- and tell and we need to have a -- -- here whoever heard of a person's spending himself and the prosperity of stupid.
Let's take -- walk down a stroll down memory lane if you will president Ronald Reagan.
Had some sort of a deal with the Democrats as it turns out we got tax hikes and no spending cuts about it until we get -- do you really believe.
That we're gonna get spending cuts as a result anyway.
-- -- think we're gonna get spending cuts -- they will get spending how Democrats or Republicans to be honest with the anyone with a common sense knows you gotta cut that spending.
But I don't want it I don't -- -- -- -- -- Ronald Reagan is having taken tax increases and not gotten spending cuts.
In a bottom line Reagan lowered the highest marginal income tax rate.
You know from 70% to 28% that's pretty good.
He cut the -- -- -- the capital gains tax rate for quite a while -- -- cut the -- -- I mean this was not a man who raise taxes I mean that's not a correct way to describe -- yes.
They always tried to put it back would you -- -- spending cuts if you give us revenue and answers.
But that's not the way Reagan really ran it.
-- you know you you've alluded to comment sense here a couple of times.
I happen to think the Laffer Curve was one of the most common sense economic theories out -- do you think the White House is ever read the Laffer Curve and you think they understand it.
Well I know some of them do some of them do understand it but that they don't like the answer they don't like the answer that takes control away from them.
And done now they they -- -- play class warfare they want to redistribute income Charles they honestly believe they they think if they know better what's good for you that you do.
And -- you know -- that type of philosophy you're never gonna get it.
Lazy fair type of government of a minimalist government you're gonna always get the -- -- -- hands on control as people.
As in these are those people I mean that it goes right back to the beginnings of sort of academics think -- -- far better aren't -- And I gotta tell you argue that we've talked a lot in you know this is is down.
I think is I've ever felt you know I've I've -- -- energy is down affiliates is the element that is now that and that makes me a little -- a little nervously.
You shouldn't you shouldn't I'm feeling really up to be honest with -- -- I just wanna get by this bump.
And then take a lot in 2012 because I think we're gonna take the house the senate and the presidency.
And I think you're gonna have one of the greatest -- of all time.
This is 1979.
When Jimmy Carter just before Reagan comes in and really changes the face of America okay I'm very excited about the long term.
Honest are really you know that's the art Laffer that I know -- thanks a lot are really -- since I'm glad they -- -- of today.