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Former Reagan Economic Advisor Art Laffer on the income battle taking place ahead of November’s election.
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-- calling income NV in America and in the race for the White House let's bring in off laugh off former Reagan economic -- and he joins us from Nashville.
-- I want to draw your attention festival to what governor Romney was signing on sixty minutes last night.
He was defending.
The low tax rate 15%.
On investment income.
-- got to ask you a political question I guess can you get elected in America today.
Defending a low tax rate on the profits you make in stock trading all.
Or other investment income is that a good line of attack on defense in an election.
I don't know if it's a good line Stuart but lot of presidents have been elected and proposed exactly that.
My view of course is I think we should have one tax rate on all forms of income.
From dollar one to dollar and like Jerry Brown had when he ran for president.
A 13% flat rate and replace all federal taxes that's the way I'd go but.
You know a lot of presidents have been elected and -- -- those rates low I mean Clinton cut the capital gains tax rate.
A lot of presence of -- Latin they've been elected again very popular.
It's amazing.
Yes and I don't understand why it works here I mean I've seen this and many other countries they called the tall -- syndrome where you cut down any piece that grows too rapidly cut it down.
But you know honestly Stewart were all in this country old young black white male female rich poor were all part of the same team that.
And I want to quote Jack Kennedy here he said that no American can ever be made better off by pulling a follow American down.
And that every one -- -- made better off whenever one of buses made better off a rising tide raises all boats and I think it's far better to solve the story that we're all together every you -- rich people to provide jobs for people are struggling to make yet up.
If you don't want to make the rich for what you really -- to do stewardess to make the poor richer and balance up from the bottom not pulled -- on the top on that front apparel for.
He's governor Romney's tax plan which is you lower tax rates for individuals and cooperation -- that across the board.
-- and it caught some loopholes and deductions.
And then you grow the economy because you've got more money are flowing out in -- does that work for you is that the is that of violence that Iraq's policy.
Yet that's exactly what Reagan did that's exactly what we give me 86 tax act that's exactly what John F.
Kennedy -- that's exactly what Bill Clinton did really.
And that's exactly what Jerry Brown ran on in 1990 till was a 13% flat.
It would work wonders for this economy it would provide prosperity for all groups old young rich poor male female black white it's a few kids that.
It it's -- that no discrimination.
Best job provided -- it would raise the deficit in the show all wrong wouldn't it I mean -- you wouldn't know no.
Not a not -- -- you get all around.
-- -- You get all these rich people who -- all of a sudden what pay their taxes that a finding lawyers and accountants to get little -- you get jobs plan to give the stock market rising investment going.
This -- would take off like -- Jack rabbit Stewart now.
It would maybe take some time to implement such attacks.
Now during that period you use you lose revenues like we -- in 81 and 82 before our tax cuts took fact.
But once those tax cuts take effect Stewart this place goes crazy.
It's amazing to me how tax great tax cuts don't work until they take effect but -- they -- like mad.
Do you think we could get 7% growth in night in a calendar year in this country as we did in the very early ninety -- if you could do that.
I guess course of fact I think it's much easier now than it was back -- because I think that Obama has hurt the economy a lot more than Jimmy Carter -- I mean you're you're really had a horrible situation in 19808182.
You know -- on the heels in Jimmy Carter put you know it's even worse today -- so I think we -- get those growth rates.
Quite easily -- a whole overall fiscal and monetary reform.
I think it's primed for doing something right.
OK art -- it is always a pleasure told you from national Cummins is again soon Lisa appreciate it thank you -- well.
