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Peter Ferrara of the American Civil Rights Union discusses how the administration can boost economic growth.
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-- -- got to obviously Denver David -- tonight here's a simple question.
When it comes to economic growth do we now have enough economic data to put the old proverbial stick to the heart of Obama Comex.
And replace it -- I don't know for black better term growth economics.
Maybe we should just listen to the president right here every second 2009 maybe he's got the answer.
And.
A year from now I think people are gonna see that we're starting to make some progress but there's still going to be some pain out there if I don't have this done in three years.
Then there's going to be a one term proposition.
From Maryland we got here is now less of it if there was any doubt left -- as to the success of this Obama administration's economic policy.
That we got -- this week in the stock market right so as -- Bob and always has the market in the short term is a voting machine in the long term.
It's a weighing machine well I'll tell you investors voted this week and Obama nominates and about a trillion dollars a -- what Boe might the money haven't -- The question all America needs to get the real answer to is is simple.
Where will the growth come from now.
The answer is for growth economics reinstating this radical crazy idea.
That just like in 1986 we can bring.
-- chains -- are screwed up tax system and this keynesian spending fiasco.
And replace it with I don't know.
Growth creating economic and fiscal policy we can do it -- its core part we have a five step program and a first step.
Instead junk the tax code and just like Reagan did with the tax reform act of 86 we can do this discord this.
Radical idea former Reagan advisor in the -- there America's -- -- bankruptcy time bomb holy macro.
Peter -- joins us now from the all of -- -- my favorite cities.
-- Helping you here and I I you know I remember eighty -- I remember 86 clearly.
When everybody is saying we could never get the tax reform bill -- it would never -- knowledge ever gonna do this and all of a sudden.
Bob Packwood senator Packwood sit down and said you know after a three airlines -- one of my favorite said.
We can do this that we did it right.
-- when you lower the tax -- you maximize the incentives for production.
For job creation -- you allow producers keep a higher percentage what they produce so that increases their.
There incentive and during the Reagan years they reduced the top tax rate from 70%.
-- -- -- -- -- 28%.
Now with one more rate for the middle class of 15%.
In my book I talk call it the most successful economic experiment in world history economy took off.
In 198220.
By your economic -- what are referenced the -- rightly called the greatest period of wealth creation history the planets.
Twenty million jobs are created the first seven years alone whereas now today we're still seven million jobs below the peak before there -- the last recession.
Every and a half years ago -- -- Material look at the of the -- that the jobs created for the last 67 years were bubble I don't think the discount and let's not forget in the -- time they also got rid of tax dollars I have been to have been in the business.
Upgrading a wonderful tax dollars that that worked with the code and it didn't work after 86 we took serious amounts of bull crap out of the system work where real money could go to invest in real companies -- we were investing in Windmills and everything else so there is there but they took tax breaks and -- a lot of stuff out of the system and network to.
That's what tax reform is all about you close loopholes and you lower the rates.
And Wu so you know -- Paul Ryan for example in his budget -- a very good -- war.
-- 25%.
Top rate for people making over a 100010%.
For people making less than a 100000 corporate rate reduced to 25%.
You know today we have the highest corporate tax rate industrialized world at nearly 40%.
Even Communist China has a -- 5%.
-- period out you know that corporations you know actually pay about 26% number one number two even at 26%.
Up to two trillion dollars -- revenue corporate taxes is about 200 billion -- -- drop -- the butt wipe -- -- down on corporate taxes when corporate corporations pay almost zero taxes the United States.
Well that's what you're talking about there's cause of the loopholes but the re -- -- -- tech -- -- economic decision making.
It's the rate -- that the marginal tax rate.
That determines what you make that investment or not and that is the highest in the world the average rate is lower because there's so many loopholes but you -- -- -- -- -- of the revenue.
To lower the rate.
And make it the companies Begin investment in America internationally competitive so.
That's you that you did effort individual taxes and corporate taxes and that would be the most important step in creating.
This new economic bullets as long overdue all right so I call this growth about a to -- another part of grow economics it would seem to me.
Would be if we really want to increase investment capital could remember investment is the only thing that goes and innovation innovations like that it -- well.
How about a two year.
Tax free window for new money being invested.
In new companies not owned companies but new companies if we had a two year -- time on any capital gains how much how much capital do you think would be invested in the United States.
For new enterprises.
Well that would help -- -- most important is permanent tax changes so anything that the year two.
Is not as good as a permanent change of permanent tax reform in -- loopholes.
Lower the rates.
The other components are economic in reaganomics -- to cut government spending to reduce the drain of the private sector there deregulation to reduce costs on businesses and consumers.
And the stable anti inflation are -- -- -- with you monetary policy.
Those are important components of a growth economics all right does and I appreciate -- I I love where you're going with that at -- that you can be on the growth and comics came okay have been a financial advisor if -- -- the rate.
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