You're watching...
Former U.S. Secretary of State George Schultz on how steps such as reforming the personal and corporate tax system will boost the economy.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Ronald -- -- question could decide the race.
Might be well if you would ask yourself.
Are you better off.
Then you were four years ago.
-- really have like tiger -- posters of Ronald Reagan.
I don't and -- way to -- secretary of state George -- Says if that's -- the election is about the president does indeed have a lot to worry about so it's also secretary of the treasury secretary of labor government has done at all.
I guess the -- that the cabinet Patrick secretary always good to have you thank you very much.
Thank you what do you make of what have you know you.
I'm listening to your program.
-- all despairing.
Yes yeah that plus another nine -- now that's a million that's not -- we my I think there's hope what are you say.
Just.
-- get out the old Reagan program.
And it will lead you to prosperity without inflation no problem all right tell me now where what -- innovative program.
Number one.
Reform the personal income tax system it's not hard.
Who's done in 1986.
You know how much it passed the senate by 97.
To three.
So you can get broad support.
For cleaning out the preferences and lowering the rate.
And then saying that since this is the tax system -- gonna change no more changes.
Second.
You can do the same thing with the corporate income tax system.
Yet the rate down to at least 40% I think people generally -- that we have the highest corporate tax rate in the world right now.
So it shouldn't be hard to get people to come together.
And do something about that.
Well apparently it is -- judge now it is right so so what do we do to deal.
But I'm just telling you here's -- simple truth.
I must get it out there and you do those two things you've got a long ways Richard -- a few other things you have to do.
First of all you have to get the Social Security system so -- and even -- Needed to do that.
We have to do is change the method of indexing benefits.
From wage indexing depression and actually nobody gets less than people -- nobody over 55 is affected.
And the system is sound really young people that's what they're worried about they should be worried it can be fixed.
No problem personally I'd like to see a few other things.
But that's the way to fix it.
Do you think -- -- bubble went out you have some very I -- wanna focus on a couple of things you said the secretary and one is that.
I think businesses need something to look forward to like individuals and something to look forward to some insurance and so it's accountability.
All these bush rates as you know expire at the end of the year.
One suggestion is to extend them another year at the very least.
And then look at serious tax reform next year Harry Reid against that in the senate will what do you think.
I think that.
That corporate that income tax reform and for that matter corporate tax reform such as I've suggested.
Should be done now.
It's -- it's a simple thing to do the joint committee on taxation has an excellent staff.
They can they've been pushed out all of these.
-- preferences.
And tell you how much you can reduce marginal rates.
Then when you've done that say it's over now that's the tax system -- going to be changed.
And I might say that people respond.
To something that's permanent.
When we have a program that's constantly shifting the little this little of that.
People don't respond to that so -- -- a sit there inflation system that's been shown to work.
And get the tax rates down get the preferences out.
After all of preferences of what people who can hire lawyers who get their extensive get rid of -- And get the -- Do the same thing on the corporate side why should we be having the highest corporate rate in the world.
And that's not easy and difficult to figure out I don't see why people can't get together and do it.
Well you know your colleague did I used to work with David Stockman in the office and out of -- as we've reached a point now.
Where you can't rule out tax increases they've got to be whatever.
Mix you have to address the -- what he -- Well I think that if you did what I just suggested on the corporate and personal income taxes and that the economy with a few other things would take off and what you what generation revenue is economic expansion.
That's where you get it don't -- Russia revenue by having a higher rate on no it no mention.
What you want this extension.
