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Curtis Dubay, Heritage Foundation, on the implications of the looming ‘Taxmageddon’ and how it will impact all tax brackets.
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Tax and again it's living in the last congress and the president stopping it no matter what income bracket you -- I think people don't know that it's gonna impact you no matter what joining us now to talk more about this.
-- senior tax policy analyst Curtis debate from The Heritage Foundation.
-- actually true we go through every group from low income to baby boomers it's gonna have an impact on everyone's taxes if nothing changes right.
Yeah there's no doubt about that.
The average family trusts and estates we'll see a tax increase that is greater than 4100 dollars and 2013.
That means that that means -- -- to replace 4100 dollars of their budget they'll be taken by the federal government.
All right so we've been talking nonstop about this fiscal cliff earlier this week the Fed chief Ben Bernanke.
Curtis -- it's too early to worry about the fiscal -- do you -- -- battery think we're running out of time here to get that tax reform underway.
Actually I think we've run out of time Mohamed Al weary and worn in the page of the Washington Post a few weeks ago that congress need to get out this at a -- reserve pricing it and Jamie Dimon warned the same thing when he was testifying here to the senate banking committee.
And this week we saw on the Wall Street Journal Irwin Kellner wrote that don't don't certainly it hasn't -- -- causing is.
Part of the reason for the recent spate of bad economic news to congress -- to act as soon as possible.
I -- -- -- give tax reform to preserve the entitlements Social Security Medicare when not.
Well there's two parts of the so called fiscal cliff -- -- again which is a massive 500 billion dollar tax like -- I'm talking about her in January to drop here.
Going right and and so the idea is for congress to prevent that tax increase from occurring on January 1 stop the expiration on the bush tax cuts.
The payroll tax cut a whole host of others -- provisions.
And stop implementation of five new taxes from obamacare including the most economically damaging tax in the entire law which is a new 4% surtax on investment income.
-- -- that Mitch McConnell made on another network was that.
You know that the tax system contrary to popular belief.
Really does favor lower income folks and he said it appointee was making was that 70% of federal income is provided by the top 10% of taxpayers.
And 45 to 50%.
Of federal tax payers don't pay any tax -- -- people don't pay federal tax.
Is that argument for the American public right now it seems like we're very much divided along these lines and I don't know if that's.
It may -- numbers that are accurate but I think it's a tough sell.
To that to the larger population how do you sell it.
Well I don't think what's on McConnell was doing was saying that -- -- getting -- player that we need to have -- middle class -- Tax take heart -- take on the -- -- is pushing back on is the fairness argument that the left always uses which is that.
The rich -- paying their fair share how can that possibly be the case when their shouldering almost the entire federal income tax burden.
Well I I mean.
But it's not getting a lot of traction with the American public when you say things like any you -- for example there is a CNN poll that said that 70% of Americans favor the Buffett rule.
It it it it gets traction when you say you want to tax the rich more what's the best argument.
That you could make against that -- might convince the public.
-- it's important pushed back on the standards argument because leftist substituting it for their traditional arguments for raising taxes.
They've they've lost on that account they've lost no substance the American people understand and if we raise taxes.
We're gonna slow economic growth and weird vastly -- resistant to slow economic growth right now.
So there cloaking the argument now in this fairness rhetoric that.
The rich need to pay more to the middle class Singapore out of fairness and most people would agree with that except for the fact that the rich are you paying best in more gases.
In the middle class and the -- -- we gotta got -- so much for coming out we appreciate it.
Think you know it's all about impressions suggesting a -- credit doesn't everything.
