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Former President’s Council of Economic Advisers Chair Ed Lazear in Jackson Hole, Wyo., assesses Mitt Romney’s plan for the economy and to lower ta...
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Your last night that jobs will be one of his top priorities but the speech did the lack some details as to exactly what -- do.
Maybe we can get more details for -- here is a former chairman of President Bush's.
Council of economic advisors always a pleasure to see -- -- figure out Jackson Hole beautiful location did you think that Romney's speech was a little short on details.
I did not -- I'm actually surprised that that's the reaction I thought that the governor is quite specific end.
Those things that he didn't say in his speech or are again quite explicit in the papers that he's put out so the plans have.
I think been you know.
Very detailed relative to the kinds of things you know say that the president's been putting out -- sale -- first person so my guy at first we -- that 59 point program and and you know -- was frankly a little too.
Confusing for most people it didn't certainly didn't -- -- a bumper sticker.
How in the way has that been -- fine since then.
Well there there is -- five point.
Document that he has circulated that I I've read -- -- have gone through and it's it's consistent with the way I certainly think about the world I mean net.
-- the vision that the governor has and that the president has of the economy really quite different then I think those are laid out in the governor's plan.
You know if you think about what it is that we need to do right now.
The problem has been that over the past few years we've been focusing on short run policies they haven't been effective it's unfortunate that we're kind of stuck at this.
Very high rate of unemployment the labor market is still in very bad shape.
And the way we know that you fix these things is not through the short run gimmicks but rather through long run changes in the longer and changes involve.
Broadening and lowering the tax rates broadening the base.
Improving trade and -- making sure that we go after markets that are going to be the the vast majority of the world.
Get -- get our fiscal situation in order.
And use a cautious tighter regulation and again that doesn't mean no regulation but it means.
Not excessive regulation and understand the costs and benefits so what does seem pretty consistent with the document that the governors put out.
But spelling out specifically for exam you mentioned tax policy lowering -- rates all across he said he lower all tax rates from the wealthy.
To the -- were paying taxes and then get rid of some of the deductions.
Which which -- -- actually like broadening the -- -- Simpson.
-- -- -- sort of plan but.
I had Tammy I had Tammy frisbee on yesterday who's one of his economic advisor so I tried to squeeze -- on that point exactly.
Exactly what kind of rates etc.
here's how she responded then I want to get back to you let's play this now.
Governor Romney is following that same model of President Reagan in this instance.
Those -- negotiations that will happen.
Under governor Romney's leadership but with the leaders in congress what we hope is once again -- large majority in -- that house but also Adenauer pub.
Our question but ended the difference with -- governor Reagan when he was running for president was Reagan had -- Kemp Roth plan there was already tax plan.
In congress a very specific plan for cutting rates -- that Reagan kind of use we don't have a plan like that right now.
Well -- -- well again you know I think the specifics are are there I think you you know I think -- -- too tough to be honest because I I would argue that.
Broadening the base by moving in the direction of a consumption tax that's consistent.
I was you know I was on President Bush's tax panel for year before it was -- chief economic advisor.
And everything that we laid out in that tax plan.
It's consistent with the kinds of things that the governor is saying so and that that plan was quite specific so if you wanted specifics he could say well this that this would be a -- a you know I don't know if the governor would.
Would follow all the things that we said that that would certainly be the thing I would recommend that I I would say -- were you know I'm suggesting to the governor of the direction that he might move in terms of the actual details that would be good starting point bottom line -- in this got to deal last question does does Romney have that same that sort of reaganesque.
Conviction that lowering tax rates will stimulate the economy and could actually bring in more revenue than current tax rates.
Why thinking has the conviction you know I'm not sure he's quite as good at delivering the message that's you know they were very they're very few who what where is -- is as -- got as President Reagan at that delivering that message.
But I think he does have the conviction in fact I saw that in his speech last night I was.
Quite encouraged by -- his discussion of his business experience and when he was talking about being in talking about bill -- -- building a business.
And and the fact that he is pro markets pro growth and pro jobs that came across to me so.
Again I you know I -- I think that down from it he certainly has the the beliefs and he is communication skills of may not be quite as good as president Reagan's that that virtually no one -- that's that's true fight I I think I gotta squeeze one more and -- You mentioned -- about the consumption tax you think there is going to be a move that during the if if governor Romney becomes a president for consumption tax of some kind.
So well a consumption tax there're a number of ways to get to consumption tax I don't wanna be -- key.
But one way to get to a concede usually when people think of the consumption tax they think of that he eighteen year they think of a retail sales tax.
That's not actually how I'm thinking about it I'm thinking about it as a yacht tax that does not tax investment that you don't tax investment that you're taxing only consumption and that's important because what it does is it stimulates investment.
And investment is the key job growth so I think that's really an important component of the plan everybody's right now trying to get your governor -- at -- good to see you my friend thank you very much former chairman of the president's pleasure to -- council of economic advisors and lord knows what happens that this man -- governor Romney becomes president -- generating.
