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Former CBO Director Douglas Holtz-Eakin on the challenges reforming the U.S. tax code and the need to rein in government spending in conjunction with ...
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And this -- this leg housing is still down but Mitt Romney talking about a tax plan that -- shaken up.
It Ronnie reportedly overheard telling supporters -- a private fund raiser that he is considering ditching or limiting some popular deductions.
Like mortgage interest for second homes and that he might eliminate the Department of Housing and Urban Development.
Former CBO director.
-- Aiken says this to be its start but it doesn't go far enough and don't expect too many other deep just from Romney either right up.
That's probably about right this sure have to feel the trial balloon.
The the candidates sort of see -- an audience would react when he talked about taking away some of those.
Really specialized tax breaks that only that audience might take advantage of but the reality is.
If you want to as -- mr.
Romney has said reform the tax code get marginal rates down -- have to broaden the base and that means a lot more than just mortgage deductions for second homes.
And the issue is can you really trust congress to tax reform -- mean they're just steadily drill loopholes back into the tax code.
I mean we've got you know the likes of Harry Reid Charlie Rangel and they've been around for decades Charlie Rangel -- been -- thinks it's -- Nixon administration.
And you know that's like put the cat among the pigeon with some of these guys who've been around -- DC for so long.
When there certainly is a history of failure on this front on the income tax -- a hundred years old next year.
And we have less than a handful of real fundamental reforms that have occurred over that time so.
Starting tax reform his heart period.
And the last -- had a major reform in 1986.
-- unwound very quickly so.
I think the key is to make sure that when you do tax reform -- you also do the entitlement reform so that you get the spending under control right.
And you don't have the tax code is the way to do the spending or the need to raise taxes in -- is just -- -- -- A -- the issue -- is that you know listen need the tax code is a 20% report powerful corporations it's industrial policy for corporates that steroids.
But what we just showed -- are the biggest most lucrative.
Terms of them in terms of revenue reasons for the federal government those were all individual things like the mortgage -- the seduction.
Things like you know not having taxation of retirement accounts and -- like.
Do you think anything any of that is under threat.
I think there's a very real.
Chance that the need to grow more rapidly and the need to get our budget in order is going to drive tax reform.
If so there's a model out there if you remember the Bowles Simpson commission brought rates down broadened the base.
-- -- you might not like every detail but that's a plan that got Republicans and Democrats to vote for it right that means that's a real possibility and quite frankly.
If you didn't have your special break I'm I have not be so defense about my special breaks and I want to you know -- you know.
Call -- I I've covered taxes for about two decades now and I testified for congress about IRS and tax reform -- cover the IRS.
The bigger the tax -- the bigger the IRS.
That the issue whiz what do you make of Mitt Romney's idea to abolish departments altogether like -- Or Kirk Taylor rein them back what do you make a bad idea.
-- -- if it gets people's attention but to my either a name more powerful thing will be -- talk about the programs because.
As you know we have a gazillion while we just saw Tom -- on -- show we hide programs that do the same thing in a million different departments and so.
You gotta go after the programs that the government does not need and the ones it doesn't even have to run effectively.
And the label Hud department of education and here is to -- less important let's take care that the real spending.
Near the GAO the Government Accountability Office dog is you know is are you better apprentice to -- laid out the road map here.
You know the president time and again has ignored the bipartisan commission on deficit reform.
And the GAO report has been set aside and now we see again of course -- GSA another scandal the GSA has been the subject and the focal point of controversies and scandals.
Since the Carter administration really dizzy was involved in the Jack Abramoff scandal maximum winds I mean so don't you know at any time -- -- It's sort of like congress you know -- -- conserving gets all hot and bothered and then nothing -- Happens.
Well the GSA is a case where I think if -- got rid of and it an agency wholesale that's the way to tricks -- because it's a broken culture.
And it doesn't matter -- a Democrat or Republican is sitting in the Oval Office that -- broken.
Temporarily the behaviors hostel we see the same problems again and again so.
The only really to fix the GSA I think is a fundamental overhaul or starting from scratch.
Cannot say the real scandal with the GSA to is that they sat on the hundreds of billions of dollars of federal real estate and in -- -- that realistic at the top of the market right Doug.
Here they and they are the most powerful real estate speculators know in hemisphere but they didn't could be very good ones merry -- Doug thank you so much your time thank you -- Holtz -- really.
