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Howard Gleckman, Urban Institute senior resident fellow, on why the Buffett Rule is not a dead deal, despite being voted down in the Senate this week.
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-- senate Republicans blocked the so called Buffett -- in a procedural vote last night but our next assets is not going away anytime soon.
This election season how -- -- senior fellow at the urban institute and the editor of tax block attacks a box power welcome back to show.
Why don't you think this is -- -- did bill for for now.
As Charles I don't happy tax day again -- Vegas or I guess the real question -- -- -- pay your taxes with your cellphone.
So yeah this isn't going away because it's a great campaign issue for President Obama he can do two things with it.
One of them is he can talk about not a populist issue the rich people don't pay their fair share of taxes when working class people do.
And the other thing you can do is he could remind people that Mitt Romney is one of those people who pays very -- effective tax rates so it never hurts if you're running against Romney for president.
I guess not -- you know when you make 760 granting you pay 20%.
You know that's.
I I'm I -- that would underscore his point maybe they'll say listen even I should be paying more taxes but Howard -- what makes me nervous about the whole thing.
I think for the first three years of the president's administration all the ideas all the agenda the ideology was always wrapped around.
The veneer of economic policy now they say you know what forget it we're not gonna try to play that game anymore this has nothing to do the economy it's only a -- in the bucket but it's -- in this social justice in this is what people should be voting for for them to have that confidence right now.
As worrisome.
Well I think they are making this pot this this populist message.
You know for awhile bottle which trying to not do that but I think he's discovered it it works pretty well we look at the polls -- populism plays right now.
The other issue is of course the the serious issue when -- get pass all of the political forces.
This serious issue is we do have a big budget deficit we talked about this a lot of road time have been on the show.
Are you gotta pay for it somehow.
So some of it is spending cuts.
No question about that at some of it's gotta be tax increases so they need at the musical question whose taxes -- raised.
You raise taxes on middle income people Obama said that's off the table from from the very beginning.
He said nobody making less than 200000 dollars -- -- more taxes so who's left people they've been more than 200000 dollars and -- -- -- -- head to head for the about the -- Right and to your point yeah this is certainly vents excess successful in polls.
And if bills like Mitt Romney once this sort of get a piece of this or at least once again a little bit of -- -- that game.
Have you been able to determine because he's -- out these problems right now what he might do this sort of appease the crowd that this sort of Bob bloodthirsty.
Torch carrying crowd that just wants to bring the rich to their knees.
Well listen this is really pretty funny because you know what what Romney is starting to talk about now.
Is cap being somehow limiting itemized deductions.
For high income people well Barack Obama is already propose that.
He side of the table for the last couple years of planned to cap -- 28% the value of tax deductions Ron is -- a slightly different way he says we're not gonna allow for example high income people to.
Take a full deduction for the mortgage interest they pay on their second home.
-- we may not allow them to take a full deduction for their -- local taxes.
So actually governor Romney is talking about the same kind of limits on tax deductions for high income people that Obama has been talking about.
So I don't know where that leaves you if you're concern -- Republicans.
Yeah I -- he's got a tough one there mr.
it's it's gets there but let's fast forward to -- January 1 when he thirteen.
Everyone's talking about this tidal wave of new taxes and spending cuts -- at the same exact time.
How worried are you about this and what kind of an impact will have on our country.
Look the end of this year and to December of 2012.
Is going to be the most incredible fiscal train wreck I've ever seen I've been doing this for thirty years.
You're gonna have the expiration of bush tax cuts the expiration of the payroll tax cut.
You're gonna have a debt limit is gonna have to be increased and you're gonna have these automatic spending cuts the so called sequestered because congress failed last year -- to deal with -- was spending in the deficit.
All that's gonna happen at once you're gonna have huge political gridlock.
Whether Obama wins or whether -- wins they're gonna have to confront this congress we know congress doesn't wanna raise anybody's taxes congress doesn't wanna cut anybody spending.
So how we're gonna deal with this I have no idea but it's going to be pretty ugly.
My best guess is they're gonna do -- they always do kick the can down the road and this time next year we're -- -- -- -- exactly the same conversation.
Well I can tell you our around this summer I'm gonna start practice in my sort of talk that this sort of talked embrace position because I don't have a lot of confidence these guys are gonna get their act together really appreciate what you've helped -- -- Our -- from the urban institute thanks a lot.
