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As we speak O'Connell mentioned that president Obama's at the UN today as his deficit reduction proposal has ignited a major battle back in Washington.
And across this entire country the -- tax on millionaires drawing sharp criticism from Republicans.
But a group -- -- be patriotic millionaires.
That group says they're happy to pay higher taxes and joining me -- pair of these patriotic millionaires Charles thank.
-- former AOL studios executive who made money selling.
And -- drop.
Chairman and of commercial and industrial real estate firm Newmark Knight Frank gentlemen good to see both of you.
Jeff to you first why should you pay more.
I think that we we we we are in a war on terror for starters and if you would core when we.
Celebrated the tenth year anniversary of 9/11.
Everybody -- that the fact we hadn't been attacked in ten years.
And the reason we haven't been attacked I think as we've probably spent billions of dollars more in surveillance and and trying to catch the bad guys but even more important we've -- our military.
To Afghanistan and Iraq over and over again especially the guys in the National Guard.
These guys have sacrificed for America and I'm prepared to sacrifice for America to -- I can afford it anymore but.
Those are patriotic intentions but you're assuming that the government will make the best use of your money do you believe that do you believe.
That your money is better spent by politicians and bureaucrats -- spent by you.
Making private donations to charity.
Well look the reality is He can't go to war and somebody has to pay for it.
I mean George Bush came along and unemployment was 4%.
And He lowered taxes for everybody.
And went to started to wars and now unemployment -- 9%.
Where people don't say is that in the stimulus package to a third of -- 250 billion dollars with tax cuts.
We need a new approach I agree -- -- the government doesn't have to spend my money but somebody's got to pay for these wars and somebody has to do the right thing here.
Right but Charles argument by -- by Warren Buffett is that He pays less than his secretary and all these Americans.
And that really only applies to may be by some -- that's.
You look at the average tax paid by people who do -- make over a million dollars in the Wall Street Journal.
They say it's north of 23%.
And that is more than double what somebody a family making fifty to a 100000 dollars.
Pays so why it.
Do you buy the argument it doesn't sit VDs millionaires are paying more in tax then the middle class.
Well that is true but.
The fact is we've been and -- historically low tax environment for over ten years and there's absolutely.
No indication no evidence whatsoever that it creates jobs so I think that we need to be.
Looking at at taxes and job creation urgently.
To avoid another recession -- deeper recession.
But why not spending cuts why is that a bad idea.
If you're worried -- because again -- taxation are you worried about the -- budget deficits in this -- any any business will tell you.
That the only way out of a financial problem is more revenue you cannot cut your way out of the problem.
Why can't you cut your way out of the problem.
Because you need more revenue -- up for example has any nation in.
History ever noticed loaded on executed -- -- if I had personal credit card debt.
-- not need to pay down.
More revenue says I need to go out and get a higher paying job and that cutting my own expenses is not the solution why is that not the solution as a government.
Again I was going back to the previous issue.
I wanted to ask.
You if there is any nation in history that ever started and executed two wars while cutting taxes for its wealthiest citizens that's not very sustainable.
And it's creating the deficit that we are all struggling to control.
Do you think it raising taxes will be better for the economy in this environment where our economy is not -- and he's not even growing is barely growing in the second quarter.
Well that is true and the reason the economy is not growing is because there isn't enough demand.
Does not come from a small group of wealthy people to -- comes from a large number of people who.
A -- Jeff I mean -- this the final thought to you.
You look at say this -- tax it smacks of Alternative Minimum Tax which was aimed at less than 200 people back in the sixties.
There is that they were targeted because they want pay an income tax now you've got.
Four million Americans that it hit more than a quarter of those people are middle income people it could -- -- twenty million.
More if the politicians weren't doing anything about it do you worry that the politicians in DC if this -- tax goes through.
-- make a similar mistake.
I think I think clearly.
You've got to cut expenditures we we all agree but -- In in a situation like this you have to do both.
And when you say raising taxes you should it raising taxes on millionaires don't just say raising taxes no one advocates raising taxes.
We're only saying that there small group of us that can easily afford to pay more.
And that the argument that the Republicans may.
That that -- we won't go to work we won't work harder it will stop creating jobs that's foolish we we go to work will work.
I wanna create jobs but I wanna do the right thing and I don't think it's fair.
If we're gonna just cut cut cut because if you cut cut cut.
Where did the one -- government does do is create jobs -- One thing the government also will do historically is when they raise taxes they spend and they don't caught and they just spend whatever additional revenue they're taking at.
Charles to you on -- oppose this.
How much -- you willing to pay how high are you willing to go because don't think for a second that 38% top tax bracket.
If that's where it stops or just done a tax on millionaires is going to be the end of it all.
Well a 5% increase in my taxes honestly is rounding -- I would also point out that it is somewhat -- to say that a high.
Tax environment like we had.
In the ninety's is going to prevent anybody from hiring or innovating -- creating.
Or growing new businesses assuming there's -- I don't think people are worried about maybe the ninety's I think there may be worried about 95%.
90% plus tax rates which was the top tax rate.
Under before JFK.
Started cutting on that the sky's the limit once you start raising them.
90% would be too much for me but 45% would not be.
What is your one how are you gonna agree I think 45%.
I mean I.
No one's advocating 90%.
Better but at the same time.
I think the president has offered a plan that says we've got to cut spending but it's gotta include revenue and Republicans basically say.
That if there's any revenue within minutes and there's no deal which would be catastrophic for the country -- we'd have to cut military spending.
And that's a lot of jobs so it's.
We need a fair compromise here its revenue and cutting.
All right Jeff you're running for office Jeff -- his can to stay here.
And also Charles vague gentlemen thank -- about the a while.
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