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Was conversation with him.
So how effective.
Will this millionaire's tax be how far -- the president's plan go let's go to professor Martin Feldstein He was president Reagan's former chief economic advise -- I yet a lot to say about a lot of this plan Martin's -- -- being here thank night much we -- I mention the political aspect of it you heard what the president said how far do you think.
This plan really goes in Washington who doesn't go any place it really is there to.
Put down a marker to try to put the Republicans in the position of defenders of billionaires.
It's unfortunate that it isn't any plan that stands a chance with them.
Special committee well.
What's your assessment.
You know a year not the only one thinks this by the way that it's dead on arrival in the in the congress for what your risks that what's your assessment the economics absent to take the -- the Buffett.
Piece of it -- what buffet wrote.
Was that He wanted to 10%.
Increase in the tax rate on incomes over a million dollars.
That would produce less than -- half of 1%.
Of GDP in extra revenue.
So at a time when our deficits are forecast to be 8%.
GDP it's a drop in the bucket so it really doesn't do much.
Except to put out the signal that the administration.
Is against high income individuals.
The pure economics of -- forget the politics the pure economics of it is that it penalizes.
Higher income individuals.
And it penalizes incentives.
And it really raises very very little revenue.
Martin you view recent.
We Rhode and this was back in June that the -- it was a piece entitled the economy is worse than you think and one of the things that you pointed out was the it would be a bit.
Would be detrimental to the economy is to raise taxes raise the tax rate in this environment part of this proposal.
Is to let the bush tax cuts expire for wealthier Americans is that also a mistake in this plan.
All I think it is but it's not just the bush tax cuts in 2013.
When the president said did his jobs -- is not command a dime to the national debt.
It's because He has 450 billion dollars of other tax increases to balance that.
And those are tax -- 90% of those according to the White House.
-- on high income.
Americans not millionaires not billionaires -- people with incomes over 200000 dollars.
Says the argument from the White House -- the president just used his own words to describe it is that you need to quote unquote balanced approach.
Do you agree with that in theory that we do need to raise revenue in some way shape or form and put an offer couple years says this plan does call for in part to the economy's better is that fair.
I think that is something that could be done -- should be done I think what the the bulls Simpson -- commission.
As a way of raising revenue and reducing tax rates at the same time was a good idea and unfortunately the president.
Didn't pick that up at the time and this certainly doesn't reflect.
That -- and what you do address something too because more than half of Americans because you we mentioned the top 3% people making over 200000 dollars a year.
They paid more in taxes then the other -- 7%.
And -- half or more than half.
Of Americans who pay no net federal income tax is that a lack of balance in some way and how do how do we address that -- So let's clearly in the eye of the beholder but when the president says everybody has to share in this in the any focuses on that top 3%.
It doesn't quite fit with the words everybody has to.
-- -- All right great to see about a ocean a little more time we talk all morning Martin Feldstein thanks for companies where they are selling talks and taxes I mean for hours of our thank you so much is a terrific topic being -- Martin Feldstein.
Are today's one.
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