Fox Business
Expand
Browse All Video
Watch Live

You're watching...

Top 20% of Earners Already Paying Highest Tax Rate?

Details

  • Description

    Laffer Associates Chairman Art Laffer on efforts to raise taxes on the wealthy.

  • Duration 4:23
  • Date

Clips

Also in this playlist...

Editor's Picks

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

Which you.

But new analysis shows the top 20% of earners tax rates.

Are higher than anybody -- with more on this.

This new study was a new analysis though that I wanna -- -- to you about.

Freely peels back there this onion and show us how people at the top -- are really sponsoring paying for picking up the tab for government.

What do you make of this.

But you know -- in a recession a depression or whatever you wanna call -- -- There -- a lot of people without jobs these people are the only ones paying taxes.

I mean you've got all these other people are not paying tax are you showed just a second ago -- get lots of welfare so.

Obviously they're getting hammered and the perfect president wants the hammer and even further wants to raise taxes on incomes.

Capital gains dividends all the way across the board is that they're not paying enough as it is it's ridiculous.

Its dividend tax rate goes up I mean.

What's astonishing about this estate tax goes way out.

I mean there's so many permutations -- this it's not just in what I hear the other such as the bush tax cuts are so much going on.

Wouldn't be the impact if this -- actually go through too big to become law the reality here in the US.

The impact sure.

It's even admitted he is going to go through in the sense of behavioral changes they can change the law but if they change at the lame duck session.

Most people already have shifted their income out of 2013.

Into 2012.

And it becomes a big tax -- And you know you'll probably get slower growth because of higher tax rates which is ready and off -- But you'll also get people just falling out of income categories on January 1 2013.

So.

You know it's a terrifying situation.

Even if they do extend the tax cuts you're still gonna get a big effect and if they don't extend the -- be obsolete catastrophic but that's my view.

Harry Reid says he's gonna put up legislation that is essentially the president's plan to extend the bush tax cuts for people earning 250000.

-- Now thank you did you have Democrats say hey look to people like you.

This is going to make that economic impact that you're talking about.

-- -- it won't be as bad maybe the economy will improve in fact because will be collecting more tax revenues.

And still protecting the middle class and you same.

What -- the one thing we know is that the rich off can hire lawyers accountants deferred income specialist they have many ways around so.

Every time we've raise tax rates on the rich.

They have paid less in taxes not more in Texas.

If you go back from the late 1970s early eighties the rich -- progressively paid more more total taxes because tax rates came down Jerry that's what happened there.

But the thing that shocks me about Harry Reid.

Is in 1986 as a congressman he voted for Reagan's tax cuts which cut the highest tax rate from 50%.

228%.

Harry Reid was part of that compromise situation.

But here it's it's -- day.

They've just now behind the very wonderful things that he did in 197019.

86 different exciting to me.

People -- of -- anyway.

Well you know -- -- -- -- the study that I thought was so interesting and I really wanted to get you to comment on.

People don't realize that the minute true middle class really gets a lot of breaks that you don't think about and most of these are tax credits like that.

Child -- child care tax credit.

This is really off the radar for so many people will once you factor those in what you find is the middle class is not pay -- that much in taxes.

Yet what but the point of it is Jerry I guess my view is.

We shouldn't be class war for -- Americans ever made better off that -- a fellow American down and were all made better off whenever anyone of us is better off.

The purpose of the tax codes is to provide sufficient revenue and create the greatest possibility for economic growth and how -- and we did.

Have a growth solved.

Low flat rate tax Simpson Bowles.

Rivlin Domenici.

The 86 tax act you know a lower rate flat tax will give us growth and if I can just say this.

The best form of welfare Jerry is still a good high paying job.

Yeah there's no alternative economic growth and jobs none.

Agree completely art Laffer thanks for coming on the show tonight really appreciate you're -- very much -- --

Load More