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Well gas certainly -- -- president's payroll tax cuts out of Republicans today saying that the forty about people say to their paychecks go right to their -- thanks.
Two -- already its former chief economist -- sell side.
Whether we need much deeper tax cuts to reverse this -- -- everyone.
I think we're economically.
We stand for -- how much of the threat is this gets.
Well -- thing is a serious problem we import four billion barrels of oil a year.
That when you -- 25 dollars a barrel to their cost of natural we're talking about.
That's a hundred billion dollars that goes out the door that's a lot of money.
In addition to that there's another four billion barrels of domestically produced oil.
That goes from consumers into -- basically the retained earnings of businesses in the short.
So that's more than a full percent of GDP of loss real personal income that's gonna slow the economy down this year.
How months because the president and arguing gas prices notwithstanding.
You know I'm not a surprise on all cylinders but we're well off -- -- You know we were so low before it started coming back last year the growth rate was only one and a half percent.
So anything over that that's not very good and this year we may be in the same situation.
You know it was a lot of talk about the fact -- in the fourth quarter the GDP growth was 3%.
If you strip out inventory building.
You -- loans I think one point 1% which are Spaniard Jesus stuff that's really stores businesses just.
Piling up yesterday on shelves setting grateful that I demand they don't -- -- yeah but it's not clear that disappearing then let me ask you about Ronald Reagan sector he faced predicament -- to the 82 recession.
We're unemployment had shot -- not -- to.
Not exactly an apples to apples but that the trend was in Birmingham by 84 we were cut off to the races.
Is saying we're -- to the races but we're not really off to the races -- much as we're what does that off the mat.
It worked for Ronald Reagan will it work for Barack Obama leading in terms of the election right I don't want to try to predict.
The election her a lot of what is the difference economically that today well analogy is always -- -- it was quite clear that things were coming back.
Back after the 1980.
But not an 82.
Well they did lost a little bit esteem but they've been such a jump.
And early 82.
That I think people were.
There are far and totally -- rank there was also we've we've had a very high inflation rate before MP rice or leave.
That we gone from double digit inflation down to around 3% 4%.
And so all of that I think made.
Reagan's economic position.
And and the tax cuts and people were seeing that their tax rates were coming down until all of that really helped.
Are what you did to Republicans out -- that we need bigger tax cuts to offset.
In this case the higher cost of gasoline don't put it's -- for Democrats -- Georgia -- you just tax cuts tax assessments will be well I think.
We need serious tax reform after this election I don't think we're gonna do anything in the midst of this campaign but I think after this election we need to bring down tac rates -- -- the president's plan to bring rounds of corporate tax.
I think that's a good thing to bring down the corporate tax rate I think there's no getting to be bipartisan support on that a lot of -- -- -- say it's not really dragging it down.
That by removing -- outsource it wouldn't it.
Corporate taxes ought to be higher well certainly Obama on the one hand says let's take the rate down to 28%.
In -- says Roman raise revenue by taking away all kinds of but it is that if -- index has.
Yeah but the reality is he's gonna raise record cheap -- so I think and he's not gonna raise revenue because lower taxes are gonna mean more growth he's -- raise.
Tax revenue by taking away some of the deductions and other features of the tax -- So there's -- to do that I don't think there's enough room to.
Push up tax revenue in his way I think the other thing that that he failed to do -- Obama failed to do.
Is to deal with the international competitiveness.
Of American corporations every other country now in the world has a tax system.
We choose friendly to overseas investment which encourages Gingrich is the opposite we're doing the opposite where -- it -- -- was general a lot of time.
-- Mitt Romney and -- it could have and his plans Mitt Romney is.
Guy who understands.
The economy -- understands business I think if he's president we will see.
Taxes that our tax changes that are going to be positive for the economy's -- over -- 40% slashing rates across the board yet durable.
Yes is doable it would be it would cost us less than 20% because there'd be some economic feedback.
Yeah we would have to Bagram when it.
Rates -- cut that we don't wanna deficits and so we start nine and well you -- -- almost immediately just because of the way people respond to lower tax rates but then.
So it's not a keynesian response.
Aren't you worried but Democrats say yeah these Texans like print a lot of revenues as they did when you -- going Ronald Reagan but congress and its infinite wisdom.
Well I think the key thing is that it has to be combined.
We have some base broadening and that's what the Reagan 86 tax cuts didn't brought down tax rates from a higher level than we have today.
To a top rate of 28%.
But he did it without losing revenue because he's got to reiterate a lot of those loopholes and I don't you couldn't write a credit card interest senator aren't.
And that's certainly happen I don't think it was part of the 86 this was a -- period in the kudos go ahead of you're seeing at the current president Ron is putting forth are not crazy -- and -- not crazy don't Medicare plans is the president is no not at all I think it would require combining it as the Bowles Simpson commission suggested.
Tax reform -- limits with caps.
You -- I've talked about that on this program -- perhaps on some of the current deductions and exclusions.
That I'd much rather have a lower marginal tax rate.
And limit the extent to which I get deduction cap so exclude keep it clean keep it clean -- complicated.
On morning thank you very much to hostility against sometime happy to be back aren't is a great cast a great kid born Feldstein are -- -- -- chief economic -- so much.
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