This transcript is automatically generated
The Buffett rule which failed to pass the senate has become a hot button to -- of political issue that is protecting America's highest earners will not only heard them.
But as my next guest says it could trickle down to everybody here to weigh in on this tax day Grover Norquist president of Americans for Tax Reform and the co -- To back gold Obama's war on jobs and growth.
Welcome back to the show wherever it's great to have you actually hearing night and why absolutely yes -- so let's talk about this of the buffet tax fails mightily.
I was surprised -- how.
-- people voted against say you say it's because everybody understands that our common for you next yet here's the interesting thing that the government the pro government big government crowd.
Comes up with high taxes on -- rich and then they over time trickle down.
And again this is at least a minimum 30% tax on -- should -- to start with.
But the AMT the Alternative Minimum Tax 1969 gonna hit a 115 people.
Today it's four million Americans.
On January 1 of this coming year treat their kids can hit.
31 million Americans have.
115 people to 31 million people over time.
The personal income tax -- -- it was put in in -- nineteen this is one I didn't know about I didn't understand that originally.
It was just for the while I jet.
In today's dollars people make when ten million dollars -- -- Just that that not you would make not -- then why why not the people make ten million -- of sure why not.
But and they -- and then now half of Americans pay it.
We -- -- test driven this whole idea whether people really like the Buffett rule.
It was on the ballot in Washington State.
In failed -- when I tend to want to what apple did not like it when it was your it was just did they don't have an income tax and questions that they said let's have a think about.
Only on Obama's definition of rich people 600000.
Dollars and in income.
When it was first put forward it was willing to the one we think -- sure -- -- as people thought about it it lost two to one.
Obama is buying in to polling data that you know turned sour.
Like fish out of water or something other refrigerator.
And a lot of -- I had a they have a lot of big money behind a Bill Gates a lot of people yeah hey let's that's push this we really love this Buffett says vial that's Warren -- of Washington State -- for it.
But not middle income Americans because they understood what you had an income tax it would come for everybody.
Now it's it's interesting that you're here today tax it's tax day but also tax freedom day for most Americans I think my tax freedom day -- August or something but I.
This is the day that most Americans can say hey now really working for myself now I've paid my local my state my federal taxes.
It's getting later and later -- what's going on well.
Taxes -- -- are too high but this isn't the total cost of government Americans for Tax Reform the group tonight share.
Actually -- -- tax freedom day -- apply your taxes divide by the whole nation's income.
We were we collectively working -- today.
To pay our taxes this also happens to be the AF -- taxes those are two different thoughts but -- -- the -- that there's another day that's cost to government debt.
-- total taxes plus deficit spending debt so.
Total every government else and then -- the regulatory burden when government says you have to buy this you have to be of the car it has to do this together house yesterday that.
We work until early August on average to pay for spending.
And regulatory burden federal state local.
But it's gonna get worse and that's -- -- starting next -- gonna have a lot more taxes to pay -- the Obama care taxes the expiration of the bush tax cuts.
This could be a disaster -- unless.
We have an election in November and change the players.
They usually liberal politicians like to have their tax increases as far away from the election as possible.
New governors like Cuomo raise taxes in their first year so hopefully by the fourth -- when they're running for reelection you don't remember what they get.
And that's -- April 15 is as far as humanly possible.
The way in the calendar from the Election Day right there and April right November.
What Obama has done is set up a situation -- if you -- -- in November.
The -- -- minimum tax comes back the death tax jumps to steal half of everything that you have saved all of you like 55.
Tax reductions disappear completely in the first year it's over 400 billion dollars in higher taxes first here.
And it's over four or five trillion dollars over a decade.
By you have to do is vote for Obama when you get whacked -- tax increase.
I think -- have been better to not put his tax increase in his reelection so close together.
Well but it's not just a matter of political scheming let's talk about reality for most Americans it's going to be a big get a tax -- look at people expect.
If there isn't some kind of real change here.
Well you you get -- to a minimum tax comes in for 31 million people she did they take away a lot of the deductions or credits you advise you had a change yes it's over a hundred billion auction.
-- want -- a huge huge.
Then on the individual level the tax rate goes up to 39 and a half plus the -- -- -- so.
That's also the tax that most small businesses pay at most 80% -- small businesses are corporations.
-- partnerships absolutely subchapter S companies so they pay the personal income tax which is going up to 45.
Even as some moderate -- I don't we take the corporate income tax down from 35 they may.
But for most small businesses for the people employ the majority of Americans they're looking in if Obama gets reelected if you have a democratic senate.
Up to 45%.
We -- the people who we expect to hire yes so many Americans in the coming years and they compete with the Canadians who have a 17%.
Corporate income tax will be a 45.
Barbara thanks for coming on have been usually you have yeah I health.
I did I get electronically and you've already done -- that's good news all right good news -- thanks for coming on Chalabi backs.