You're watching...
Curtis Dubay, Heritage Foundation senior tax policy analyst, and Roberton Williams, Urban Institute Tax Policy Center senior fellow, weigh in on the c...
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Guided right now.
A two month extension currently on -- table for the payroll tax cut but will.
They reach agreement -- -- Robertson Williams senior fellow with the urban institute Tax Policy Center.
And -- today senior tax policy analyst.
With The Heritage Foundation both joining me write down Chris I wanna start with you on this one.
You know they are still stock.
On his payroll tax extension problem do you think that really at the end of the day.
What we've had last year has created jobs help the economy whatsoever.
No I don't think so and could -- just has always never.
That's correct Democrats -- never create jobs because they're temporary and businesses and families don't plan temporary measures they make decisions based on.
There economic considerations going Ford 510 years down a lot.
So no I don't think it's health but.
That said I don't wanna see attacks take -- -- many years so I think we should I continue to payroll tax holiday for another year.
Well Bob -- -- -- this it holiday going from six point 2% down that's.
To four plus six point 2% to four point 2% I mean is this really a meaningful drop do you think.
And is it really worth the debate in Washington and the cost to taxpayers at the end of the day.
To put this for another year if it's really not proven -- it's helping the economy and the markets.
I don't think partisan right when he says it hasn't helped the economy at all it's putting -- 120 billion dollars a year into the economy we wouldn't have otherwise that's demand for goods and services and that's why firms higher.
Additional workers.
When there's business coming in the door customers coming to them they hire and this helps boost that demand.
You know but look at it and this at the at the same time guys I mean a 160 million workers -- is a 160 million workers affected by this.
And what we have heard over and over is that these workers are gonna spur economic spending haven't really seen consumer spending in 2010.
Big become boosted.
By something as what you can say is -- -- apparel tax extension.
Now of course not look at look at economics that's this is today it on peninsula around 9%.
We haven't seen the growth that we were expecting.
This is a -- -- keynesian spending that we've been that we've been.
-- undergoing the last three years.
When it comes to using the task which create economic growth and create jobs it matters how you do it what matters its incentives that's what we need lower rates permanently not holidays.
Again I'm not against putting people letting Americans keep more of their hard earned income I'm all for that but this this -- the holiday will not do it.
Now Bob -- good to the other issue here we're showing our viewers doesn't stats on unemployment not to some of the president but also overall last year we -- unemployment.
A sitting just below 9% this is the other debate that's happening in Washington right now the extension of unemployment benefits right now.
-- at 99 weeks there is movement in Washington and the thinking is.
Let states decide if they need extended benefits state by state Lehman best -- that we save money on a national basis is that a good plan do you think.
But the problem with that is the people that really need the -- today -- -- long term unemployed we have more people unemployed for more than six months now we've had since the Great Depression.
Those -- the people that if you help them out with more unemployment compensation they will spend that money that will help.
Have demanded -- out I had they -- that's a thing they have they are spending their money.
These are people -- -- from the other problem with the payroll tax cut and give an awful lot of money to rich people who don't spend it.
You focus the money on people who will spend at the unemployed lower middle income households then it gets most of the economy I can't long -- -- not learned over short run it's a good thing.
Curtis do you think -- it really the to the states basically at the state does not have high unemployment and they get.
Less unemployment benefits and there a constituents a state that has higher unemployment Nevada for instance.
Would stay -- 99 weeks is that a good idea do you think.
The bottom line is unemployment insurance program needs reform.
-- we can't afford to pay benefits and 99 weeks and second the longer we think benefits I understand there's -- a very human -- a very real human costs and people are suffering -- work on time but.
The longer we keep those benefits -- the longer we encourage people not to seek work.
I -- I think that the plan that's put in part of the house bill is a good step forward and we have to get off this.
This notion that if we take money out of one section economy.
And transferred to another I think the government that we're going to encourage economic growth -- its fiscal alchemy in this is where.
This is the thinking behind the -- it is -- that's gone on the last three years it doesn't work.
We'll gentlemen -- may have one issue that you might both agree on and that -- the Keystone Pipeline.
That is another thing that has been brought up in the debate in Washington with regards -- -- tax extension -- NN.
Throwing -- in the jobs are created in this country.
A Curtis do you think.
If congress can agree.
To put the Keystone Pipeline ended this get approval now vs 2013.
Which is where the delay is do you -- that job creation.
And it would actually be a good thing for the economy in 2000 while.
-- -- -- energy sector is an important part of our economy trade and allowing this type wanna go forward be a good step and create jobs.
And I think the president's veto threat is is rather hollow because if it passes the house and -- the senate.
He'll be forced to sign it because there's no way he's going to stop a middle are he's gonna allow middle -- that interest tax increase in the his own easy is it has not here occur -- Bob do you think the good enough reason to push this -- on.
Optimal create jobs today might be and we do a lot better to give money to states and local governments to -- so they don't lay off more fire workers firefighters and policemen and teachers.
Put the money -- -- today and not think it's going.
And as a false comparison to say we can't gather we're borrowing money would we can borrow very cheaply now when people otherwise -- not spending.
That'll boost demand and that'll create more jobs that's what we need right now the long run worry about the deficit.
Short one worry about jobs.
Well jobs is a little I think a lot to worry about right now Bob Williams Chris today gentlemen thank you.
Reporter markets act as a sailor at this point have not reacted to the payroll tax extension issues and -- well off of session highs but.
