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How Would Romney Take on the Economy?

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    Romney Surrogate Tammy Frisbee breaks down Romney’s economic plan.

  • Duration 4:35
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-- the biggest weaknesses has been state and local governments which have laid off 450000.

Americans congress should pass.

A bill putting them back to work right now giving help to the states.

The battle is heating up between President Obama presidential candidate Mitt Romney -- as saying here.

It is all about the money how that -- differ on economics and what their plans are.

Is -- always so easy to understand -- a break it all down for you today joining me now is Tammy frisbee she is.

Romney campaign and a professor at Stanford University thank you so much for joining us.

Pleasure to be here today.

I -- -- the planet I am looking at some of the basic outlines of the Romney plan and it starts with a cap on federal spending.

At 20% of GDP what is not achieved.

What achieves is bringing us back down to our historical norm.

There's a lot of talk out there that this is some sort of severe austerity program from the Romney campaign.

When in fact if you look at the data and here's where the data really matters between 1996.

And 2007.

Government spending as a percent of GDP was at 20% or below so it's not like -- cutting back to some time where we can't have programs that we have had at some point in the past this is again going back to the historical norm and returning to sustainable spending levels.

Okay point number -- he wants to drop all tax rates by 20%.

-- including the top rate -- -- from 35 to 28 that's pretty much the opposite of what President Obama wants to -- he wants to take the top tax rate from 25.

To 39 point 5% -- the economic impact of taxing the wealthy more doesn't just generate more revenue.

Where the government we need that in order close the deficit.

When you're talking about tax reform.

Important to make a distinction between raising marginal tax rates are cutting marginal tax rates and cutting revenue.

Because we know from historical precedent from previous tax reforms that you can reduce marginal tax rates even among the highest earners.

And you can even maintain or grow your tax revenue say if your point is that you want to be able to maintain spending on priority programs that.

Isn't necessarily taken away by reducing marginal tax rates in fact you can get more funding for those critical programs.

And I would also point down.

They you have to think of these high earners not just as individuals not just as Warren Buffett although.

Obama has tried to use him as his poster child but this is about small businesses.

One half of all workers in America are employed by businesses that file -- the individual tax code who would be affected and and benefit.

From these tax rate reductions that -- -- unique candidate Ronnie is proposing.

You talk about the benefit to small business aren't we just -- -- -- up on the screen that showed that Mitt Romney himself would benefit and play you pay us taxes about five million last.

Underneath his own tax plan.

Under -- new tax plan -- and this -- been a big point in the media recently that he would be cutting his own taxes.

Do you think that's what this is all about.

When you think about cutting marginal tax rates.

You have to think.

Again not just about the rate.

But what you're gonna reduce the entire tax system and what governor Romney is proposing is an overhaul of the tax system.

That would involve flatter rates so lower rates.

But also a fairer flatter broader tax base so you can have lower rates but any individual bank is not necessarily.

-- just getting that particular reduction we have to think about this as a package and that's something that's easily lost in this but -- governor Romney.

And his advisors have -- in mind moving forward.

He's also talking about cutting the corporate tax rate from 35% to 25% and I guess one question that people always ask is what is it that Mitt Romney could do today to create more jobs give me something concrete.

That his economic plan would do to put people back to work.

While cutting the corporate tax rate would be day one way that he could.

That create jobs in America and also moving too -- -- territorial corporate tax system from the worldwide tax system there's bipartisan agreement on this point.

And governor Romney is proposing that he will bring -- leadership that will both make America's corporate tax rate competitive with the rest of the world.

On both the rate itself and on its territory out in moving -- this worldwide taxation system to a territorial tax system okay see you just saw on the screen.

Capping federal spending at 40% of GDP cutting the tax rate cutting the corporate tax rate.

That's the basics of the plan Tammy thanks so much for joining me in -- all that out for us.

Pleasure to be.

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