This transcript is automatically generated
Our next guests as the United States is facing a direct and disturbing reality as we -- person so called fiscal what he says we can't have a prosperous economy.
When government is over spending -- raising taxes printing too much money and over regulate.
That's it may sound very familiar choices and might describe.
The situation which we find ourselves joining us is Arthur Laffer former member of president Reagan's economic policy advisor board.
Chairman of Laffer associates author of the new book eureka.
The way to fix California.
49 on other states they're go art.
-- but -- -- big one -- that's a bit -- if we get that -- a lot of other little tumble with us.
-- let's turn to to what you described as the economic their reality that this country faces.
I can't even imagine -- there's so little I can't begin to a match.
Why there is not more discussion more and some some semblance of leadership in Washington on dealing with these so called fiscal -- -- they should but you know it's very tough for a lame duck congress if you will and all of these people are lame duck including the present.
To try to make policies don't last for two or three decades the right answer here is to do something like Simpson Bowles or Rivlin -- -- she.
Where you lower tax rates brother 86 tax -- -- that's exactly what we need right now supported by almost every Democrat in the seventh slash 97 about a.
But are -- Asian investors know very well the 1986.
Tax reform act was long in the thinking consideration.
Our analysis planning and and proposal.
This would be back of the envelope stuff by comparison.
-- it would appear responsible why not a short term hold them in -- and buy them I'm referring to -- -- White House what congress and and and let's restore what restore the status quo through the next twelve months.
-- a six year twelve month extension for everything.
That's what should be done but now even without Lou there's still a lot of taxes that are going to be increase right all the obamacare taxes -- going to be increased.
600% expensing of capital purchase that's gone they'll be a bunch of other start.
There was an Obama -- -- -- Old vices I mean the -- of the list for you gotta discuss.
It just doesn't stop.
In the wonderful America eight it is a united this isn't the way America operates though and that's one of the things -- most disturbing about obamacare.
Nancy Pelosi than the house speaker famously saying -- -- and we'll find out what's -- it.
If that those comments turn out to be scurrilous and retrospect because of what they -- -- To the American people.
In the way of information about their their economic futures.
Though the scurrilous thing was that that is the way it was not that she said.
They didn't read -- they didn't know was and it it was a partisan piece of legislation.
I've got you to the Republicans frankly that not one Republican vote for it.
Yeah and it's just it's I mean in the senate not one of snow.
And Collins both voted against that I mean it's shocking that they push that through but that was partisanship.
-- -- -- -- but -- the other on the other hand it -- become the way Washington here of late.
That is obfuscation beyond -- well I I certainly hope you're right but.
If it's not and done or at least held in the bands.
Before the election.
-- all likelihood we're going to face disaster because these are not issues -- wait.
To see where there and -- our elected officials are in the mood to be responsible level lame duck.
-- That tax -- is very very serious it's about 50% larger than Reagan's tax cut was back in the eighties.
I mean it is a very very large tax increase in static revenue terms Lou it's about 20%.
Of all federal tax about 500 billion dollars static compared to one and a half two and a half trillion in taxes.
That's a very very large number and it will have devastating effect on the economy in 2013.
-- -- -- have a -- income.
I I'm sorry what what are the effects of if I know for a fact that you.
You and I think this -- shock a lot of people you voted twice.
For President Clinton.
-- -- and Syria is now taking center stage at the Democratic Convention how powerful how.
-- polls of for the for the Obama reelection.
Efforts will he be.
Well I don't think he well because you know -- voted -- twice and I think Bill Clinton was one of the best president's we've ever had on the level of Ronald Reagan.
-- -- got rid of the retirement -- and Social Security push NAFTA through congress against his own party against the unions.
In -- put spine and the law the biggest capital gains tax cut in our nation's history welfare reform reappointed Reagan's Fed Chairman twice.
But most of all he cut government spending.
As a share of GDP -- as a share of GDP more than the next four best priest time presidents ever.
This guy was a supply side pro growth.
And you know comparing him with Obama is night and day I mean Bill Clinton was a great -- in this present Israeli below par well.
It's going to be interesting to see how he's handicap to in this coming out of that.
That a convention are competing four well.
With a stable with -- -- -- different Bill Clinton.
Arthur were refresh out of time but I appreciate you being here I'm sorry thankfully with the emergence.
Banks -- much.