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Stanford Economist Thomas Sowell on how tax hikes on the rich would impact the economy and small businesses.
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I believe that millionaires think this is.
I honest to god believe.
The vast majority of people -- -- is think it's fair I don't think they think it is soaking the rich.
Well apparently He honest to god believes that the vice president saying or -- should I say Crane.
That rich folks actually do want to pay higher taxes and every one of them is like gold.
-- demanding that they.
Morally should.
That -- legendary economist best selling author Thomas -- looking for divine intervention himself when He is stuff like that.
So -- there's so many great -- so many classics.
Latest to Thomas sold reader joins me now for a very special and news.
We don't know revenues from any guess but I think the professor warns that the next half hour.
-- inside this finance had professor good to see you of I want to get inside the vice president's had.
And what you make of what He was saying that the rich do feel this pain to to give more.
Oh bought you know I was just thinking oh today that President Obama severest critics hope nothing will happen but -- Because Joseph Biden would become president.
-- -- it is enslave.
Willow would be funny he's a very -- would for entertainment -- -- certainly have to.
Yes I'm not sure how many people who lose be a losing still more job -- be more -- through the -- -- would think with what though.
The so this whole talk about the tax taxes on the rich as an aero auto unreality.
From history as well as from economics.
The rich don't have to just stand there and -- this this this money and -- and all of history says they don't.
Already whereas it was seeing in the past few years more money leaving the United States income them.
You can raise the tax rate of any number that you happen to like.
Well for genuine millionaires and billionaires is a very simple -- to transfer their money overseas electronically.
Before the day is.
And we will will never see them actually paying those taxes.
The people -- be hurt will be the people -- well or smaller and localized.
You know -- -- the local dry cleaner cannot transfer oversees the local restaurant can transfer overseas.
And more importantly the people looking for jobs can't transfer overseas.
To take the jobs -- to be created there.
By -- millionaires and billionaires sending them money to China and Germany and other places but do you think.
-- -- there's a philosophical revoke going on even within the Democratic Party when the blue dog Democrats always been by and large more conservative than the more liberal leaders.
Are saying to a man and woman now all of them.
Let's let's get a tax holiday -- five point 8%.
Holiday -- on money that's held overseas by these companies will maybe bring one point 41 point five trillion dollars back here.
And they don't even attach a litmus test to it or proviso to it as the president might they just say bring it back.
There's no reason why it should just be sitting over there.
Oh absolutely if you look at the first time this issue is -- -- hashed out politically back in the 1920s.
Every single I admit that -- you're used today we've used that.
Eventually they brought the tax rate down on the top bracket from -- like 74%.
To 23%.
When that happened vast amounts of money that had been and municipal bonds and other tax exempt securities suddenly flooded out into the market.
-- all that money being invested obviously you had to hire more people.
And or to get get get the return.
On employment and the next four years range from -- four point 2%.
To a low of one point 8% so -- volume has already been -- out it's already been.
Worked out and we've seen what the consequence was.
So is it that -- job buoyancy hearing all these same -- was repeat.
