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Christian Dorsey of the Economic Policy Institute and Curtis Dubay of the Heritage Foundation weigh in on the tax debate and government benefits.
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All right thank you very much Nicole.
And -- while Mitt Romney and now says the campaign is about the -- percent.
-- fallout continues from his comments about the 47% of Americans who pay no federal income tax.
And entitlement culture now that this core of the controversy.
Here to debate -- do bay of The Heritage Foundation.
And Christian majority of the Economic Policy Institute thanks for being with us journalist -- and Chris -- -- -- -- you first of all is what Romney said.
Complained about basically right.
Yeah there's no doubt that the numbers not in dispute 47% of tax dollars have no federal income tax liability.
The question is really what we should push we do about that -- why -- that result.
There's -- -- people not paying federal income taxes today because the economy's been so weak for several years that I would come down I think -- economy could ever shake the way Obama's economic policies.
OK Christian -- more on the left side of this debate is what Romney said complain about basically right or wrong.
About him clearly wrong it's a distorted picture you know 47% may not pay income taxes -- most of them pay payroll taxes and not all of the 47%.
Are actually people were low income summer actually quite wealthy.
And what mr.
Romney doesn't mention is that many more people disproportionately well be.
Receive most of the benefits from all of our tax expenditures.
Like mortgage interest tax deductions for example.
Which benefit the vast middle class and Obama keeps wanting to -- let's just look at the need for most we will -- this on the street.
49% of US households now do get some form of government benefit you can see that break down.
26% Medicaid for the -- 16% so security.
15% Medicare but then let's look at the -- side of the equation I mean guys.
It does turn out Curtis that indeed 47%.
Don't pay any federal income tax right.
Is that a -- But again that number is not -- dispute we can talk about what the composition of it but.
For December don't pay federal income taxes they do pay other taxes there's no doubt about that but when it comes -- -- income tax.
Which funds national defense Homeland Security food and drug safety education welfare.
They're not sitting in anything for those programs.
That leads to them not being having any -- the game when it comes to.
People here in Washington wanted to expand those programs even further Christians just creating a culture of dependency.
2012 so that 67 point three million Americans -- dependent on the government.
One way or another that was that 8% increase of the year before our first look at Chris yeah I hear this entity Kirk.
-- you're right you're right the first time these people are receiving government benefits because they are low income they are low income because the economy has failed them.
For example if we had a minimum wage which kept pace with inflation.
We would be able to reduce the number of people receiving government benefits and put that burden -- -- rightly belongs in the economic sector this is not a function.
A failed government policies that are as the result of an economy that's not quite working the way it ought to.
But Christian only a few percentage points of the population -- ever on minimum wage and they stayed there only are here to of their entire career and studies show that raising minimum wage cost you hundreds of thousands of jobs that does not only has -- Not true it.
It didn't have a lot of birds and that 47% of Americans pay no federal income tax is that a problem problem -- -- Is they don't make enough money to pay federal -- percent.
Does the future that's something that governor Romney doesn't seem to get the issue was not with them they're not doing anything wrong.
The economy has -- them these people would gladly pay income taxes if they earn an income which allow them to.
Not Curtis you have to agree the -- on Alan Belgium.
Well again that there -- if you're gonna build income tax -- -- there's no it's reasonable to exempt a certain amount from paying federal income tax.
But you would never set up so that almost half didn't pay anything.
They'll get economies are growing again.
Certainly what people pay income tax -- have -- non payers but it wouldn't get down into an acceptable level we still need to have tax forms everyone has somebody in.
For.
The size of government -- doesn't mean raising taxes it means that.
We were we -- -- -- payroll tax into the income tax so everyone has its thanks a different helmets and pay for all the other programs the federal government.
-- -- -- -- The top 1% of earners in this country -- they control 19% of annual income.
And they pay close to 40% of federal income tax.
-- and Obama says they don't pay their fair share please tell me instead of that 40% of federal income tax at the top 1% -- Christian.
What is the fair share what percentage should be.
Look 40% is -- -- roughly -- roughly fear because 40% of all of the income gains that we've had in the economy.
Over the course of the last thirty years have gone to the top 1% so in fact they're not paying disproportionately high a percentage of the -- but it should be here.
Well you once you also factoring the fact that we spend so much in tax expenditures that disproportionately accrue to the wealthy.
They're certainly not paying their fair share.
You get to a situation where 80%.
Of all of our tax expenditures go to the top 20% OK and they're paying double what they bring in income.
In terms as chairman I thank you very much -- debate and -- --
