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“Getting Steamed” author Ralph Nader on reforming corporate taxes and what is needed to boost corporate hiring.
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Be seen as an economic engine for job growth -- next guest says they may actually be doing more harm than good as the recovery fights to gain strength joining me -- -- -- Fox Business exclusive is Ralph Nader.
Is consumer advocate and author are getting.
Steam that to overcome.
Corporate -- of very interest in Ralph good to see you again by the way I'm gonna put you in league with a guy who most people would think -- your diametrically opposite Milton Friedman the -- great.
Economists who is a big defender of free market Milton used to say that the biggest enemy of the free market is not the socialist.
It's the corporation.
That uses all of its lawyers and all of its accountants and all of its lobbyist at a Washington.
Get the special tax breaks in all the subsidies that the rest of us Porsche marks can't get.
You agree would -- on that don't you.
Oh yeah -- -- it's overwhelming David citizens for tax justice CTJ dot org has a list of all these major corporations who are making big profits paying zero income tax exactly and getting subsidies back.
By General Electric Verizon wolf well health care Boeing.
Ralph UN OK -- Milton Freeman and I would -- myself -- in the same boat they -- that's why I am for a flat tax lowering the tax rates.
Getting rid of all of those deductions just -- Simpson has always said.
Other president gave lip service to a but didn't act on it at all.
This is the effective corporate tax rate by -- we talk about us having the highest corporate this is actually in 2011 corporations paid.
Twelve point 1% because of all the special cut aways -- deals.
That they get with the Obama administration a democratic congress why don't we just get rid of all the deals raise that level from 12% to say 15%.
And call it even.
Well I think that's too -- percent in the -- literally paying 12% now Ralph yeah that's true.
They're getting away with Yahoo! wanted dues go back to that they always -- get away with -- -- that's -- point you know that they've always -- this is with a democratic president and for two years a democratic congress come -- Now that's why you have to have.
A straight rate of about 30%.
All -- -- -- -- -- 1960 it's not gonna happen with a democratic president you have an effective rate of 12%.
Well that's why we have to overcome corporate news and could you keep saying it's not gonna happen but it should happen and that's not gonna -- the.
All I'm saying the only way you're gonna do what -- -- gonna get further to the left and then Barack Obama you're not -- of god bless you but you're not gonna be president.
You're not gonna -- -- that you're not gonna get further to the left that Obama so the only way to do it is get rid of all these deductions get rid of all these special deals and lowered the tax rate which would still be above what they're currently paying.
But you never get through the deductions -- -- -- you have 20000 corporate lobbyists -- put money won't you'll remember president that I have I think you can't if you get Republicans and Democrats to agree.
To get rid of the deductions which is what Simpson Bowles was about the president has any sport Republicans have said -- fort Paul Ryan is fort.
Why did you do that route that would get the effective tax rate up for corporation.
-- -- -- David you're talking 90% of the time I mean I'm being interviewed right.
Because 90% of the odd members of congress are run out around -- -- -- and we've got to get this thing turnaround they're probably gonna get these.
We've got to take.
We've got to get these companies like Google and others to start -- and dividends down.
To the average person who can spending increased consumer demand create jobs.
And lowered the -- the -- depths of the reception -- recession to turn the country around judge's robe.
You know.
The head of Google that basically said -- unloading some of your fifty billion dollars in cash hoard.
They give -- back as dividends -- owners shareholders the way Cisco's now doing apple is now doing Intel and Microsoft they know.
And eventually well you know what worries me Ralph I -- -- only the B shares a small part.
But -- Berkshire Hathaway Berkshire Hathaway's not -- and are you angry at them as well.
Well they -- should do it because after let's one way to stabilize and improve their stock values right the studies have shown that over time.
But probably isn't the bottom I waited triple OK David I got -- -- -- triple your ratings how have someone come on every day.
And document the fact of any quality.
Why do college students borrow up to 9% interest and big banks borrow from the federal reserved for -- -- nothing.
And every time you document inequality and more people watch -- -- I'm for going back to Glass-Steagall side I don't like defected to financial banks have to have the chance to borrow from the -- Ritter I'm I'm for less -- going back there I think that's part of the reason.
But final bottom line is don't we want corporations to pay eight.
More for than that 12% and if we -- know.
Who don't we just get -- rid of all those deductions and lower the tax rate that way you would be happy because they be pay more than 12%.
And I'd be happy because -- be closer to a flat tax what's wrong with an agreement.
Because there there at the tax level that you want is too low but they're not pay more than 12% right now -- you don't want individuals pay up to 35%.
In giant corporations it's not -- name individuals not paying even 25%.
-- got to revise your proposal.
Acting -- say look the bottom line is I wanna move to a flatter tax and I think -- -- way we could do it but we can't do -- at the bottom line -- at the bottom -- News Corp.
is gonna pay their fair share otherwise are shifting the burden to the average American.
And they're not funding the public works renovation of America without which they would not -- in -- I.
-- I gave him an opportunity do agree with me and how to do that how to get them to raise their effective rate and didn't wanna agree I'm gonna have to call you up -- -- work on this after we get off the year okay.
OK Ralph Nader great to see again Ralph thanks for coming and appreciate it.
