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Stuart Varney & Juan Williams on Governor Romney & President Obama’s tax plans and whether they will help fix the economy.
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Gentlemen this I mean that the I hope they get into this -- we get into the debates about these things.
But their their.
They're different -- one of a ms.
Romney wants to cut individual rates by 20% across the board.
Corporate rates the state taxes Obama wants to raise the taxes on the 215 above -- -- start looking up.
I am somewhat critical of our governor Romney in that he is not articulated his plan well enough.
His plan is basically reduce everybody's tax rate by 20%.
So if you got a 10% right now you down to 8% 35% you're down to 28%.
At the same time he would eliminate.
Unnamed -- deductions and loopholes so it stimulate -- with lower rates but -- some deductions so you get more revenue coming into the treasury.
I like the plan I don't think he's articulated it terribly well.
One in my fair to say that's what the president planners is to basic believe the bush tax complacent except for the 250 crowd.
Well that's part of it the other part of it and I think he's articulate this in terms of what we've seen presented to the congress as a jobs bill.
Is to pass that -- be more stimulus tight spending and of course stimulus that very term is toxic.
People don't want more stimulus when they don't believe the stimulus helped.
Now I could make the argument to the country because if you look at GDP if you look at the months of job growth in this country.
-- have to say something has helped but we don't know we can't make the case specifically as to what it is but something happened at the time the stimulus took place -- Leslie that'll for a second.
His idea then is to -- best and I guess that's a more neutral term stimulus in -- in things like.
Policemen teachers state government spending infrastructure.
In the name of the air force -- getting the economy going again is.
-- problem though with people saying wait a minute we did that what happened -- it or it they tried it.
You know -- tried to start your car new -- big the carburetor and you'll always.
Maybe we flooded the carburetor.
Now I think that that the argument if if if you're not sure Stuart will knock this down but.
The argument that will come from the White House or from the president in a debate format.
Will be that we as an American family have to invest in the future.
And that you will not get a response the engine will not turn over in terms the private sector confidence.
Unless the government in fact says we are moving forward.
Not OK so sure people like that people like -- gimme gimme gimme giving okay.
I think the difference here is between government and private enterprise if we really going to return to serious growth in America.
The great engine of private enterprise has to be released.
It's not being released thus far they got the money they don't have the potency to get out that and use that money.
I don't think that government action is -- don't -- well.
I don't think stimulus -- -- well although I do see the argument that will roll collectively in the family and government leads the way but if you if you set a flat out -- -- world's best.
How do we get the best growth rate in the economy I have to say you stimulate the private sector you get the private sector going in the first instance as opposed to the gulf.
Are prepared -- -- second time -- let me say.
I think that Stewart's right.
So I mean that we don't know if this is that you know bit if we're doing our Iran the Obama mock debate here I would say do you governor Romney okay.
We want the private sector to feel that there's a certain degree of stability.
And confidence moving forward and therefore they would use that capital they're sitting on two and took to hire people specifically but to get our economy moving.
The problem is governor that what you say doesn't tell us where you would in fact -- cots you don't say what deductions you -- -- You -- plan of giving big tax breaks to leave rich in this country eliminating the estate tax -- Tom talked about for example what does that -- say.
How this economy would work in fact it would bankrupt the economy the recession would get.
Going again -- So they're very I don't like your I what I've got to jump in -- because -- you walked right into this perfect argument the Tax Policy Center which is urban institute and Brookings Institution.
They came out with this big survey about Romney's plan they went through the tax cuts he's going to do individual cuts -- corporate -- threat all the first up.
And that their conclusion was we estimate these components would reduce revenues by 450.
-- billion.
Therein lies the problem history says you reduce rates revenues go up they don't go down.
So will people understand that because it sounds counter intuitive.
-- President Obama has the advantage Chia because as you say.
You -- you give tax cuts to wealthy people but of course she gonna have a big deficit that's costing America a great deal of money.
88 sounds like the president is being economically.
Logical in fact history judges the exact opposite.
Every time that presents have cut tax rates John Kennedy.
Ronald Reagan George Bush -- -- on the part of the last decade every single time they did that revenues to the treasury went -- Because tax cutting rates have releases private enterprise you grow the -- an intraday low -- I didn't ex President Obama in fact go along with extending the bush tax cuts and currently have on the table a plan that would cut taxes for 98% of Americans but not.
But the -- -- it would cut -- probably in the same dealers extended what is a decade it private enterprise as it does now faces a tax increase on upper income on its successful small business operators that's what it faces.
It also faces financial reform.
Which is restricting activities of banks you're telling -- that frank yes I am also would send it also faces Obama -- which is an unknown cost increase for health care for their employees.
You put all those restrictions on them you do not liberate the private sector about a bubble is what we need for growth I think it.
First of all not everybody in the 1% is a small business -- most small business owners are not in the 1% second thing is when you look at something like.
The problems we have with health care in the country which was bankrupting.
Bankrupting small business as well as Stanley's when they face catastrophic care people wanted to know that we were going to reform this health -- structure and rein in the expanding cost of health -- in this country didn't know but I think people want something done sort.
So with all this discussion one when it comes down to November 6 and people were in the privacy of the voting Booth.
This is going to still be number one on their mind.
And will this mediation that they had to try to determine which of these two arguments is the one that they think makes it a -- -- level yes -- -- a man born and raised overseas looking -- all of America objectively I say prosperity.
Is the issue.
Issue one yet but they -- but will they know which plan.
There really know which plan is going to be the one that lives up to the Cambodia's -- uptick elected properly is.
-- that it actually -- back -- something you said earlier and you know I don't say this with any -- -- forget the Romney Obama debate thing we were just playing it.
Romney I think you're right has not articulated a plan.
And you know.
I don't care if you like it or don't like it.
It's imperative that if you -- saying that Obama has been a bad Steward of the economy that you be very clear as to what you would do to cure the yeah.
I've I don't know what I'm voting -- What what go to I get a better understanding of the President Obama has articulated a bad plan but he's articulate glad you're already has articulated a good -- there we go but at least.
We agree on this.
He's got to step up to the -- He's got to say voters here's what I'm gonna do what we got to step up to a break up -- -- -- that gentlemen always good to see things hello my thanks -- everybody with -- town.
