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Art Laffer, chairman of Laffer Associates, on the Obama and Romney campaign’s differing opinions on the fiscal cliff.
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-- have of course competing economic visions and they are in the critical swing state of Ohio tonight as this country moves closer to the fiscal cliff.
One point two trillion enough automatic spending cuts of the biggest tax increase in our history according to -- Arthur Laffer former member of president -- Ronald Reagan's economic policy advisory board.
Chairman of Laffer associates one of the countries.
Best known and best our economists are good to have you here.
Thank you very much Lou it's a pleasure to be here let me start with the competing economic -- -- between these two men.
-- Romney campaign has spent a lot of time asking their questions from nineteen.
1980.
Are you better off than four years ago.
When they -- damn fool knows that in 2008.
This country was in crisis.
Why would you pick up that is your fourth year compare us.
Yeah I you know what they should ask is do you want four more years of the once you've just -- -- and that I think it's a very clear answer.
But you know it's a problem now it -- it's not Ronald Reagan them.
And Ronald Reagan's acceptance speech -- he mentioned his tax rate reductions 24 times private army privatization the -- -- All the stop the for four -- distribution or for how much -- the rich paid.
I -- Mitt Romney's tax rate of 14%.
Everyone should pay that tax rate it's not that it's wrong for Romney.
It's fine for Robin is should be the same one for everyone else why -- -- world wouldn't somebody.
On his campaign -- just say are you don't want these guys -- the White House are playing games with this trying to define -- on taxes.
Take your tax rate take -- in others.
Part paid over the course of twenty years and project what the heck -- impact would be on the budget deficit if everybody had been paying.
14%.
Over twenty years though the result would be -- mountain of cash.
Unfortunately -- -- settlement that doesn't really.
Well what exactly.
This is what Jerry Brown proposed in 1992 -- -- -- Jerry Brown went from eight for the race to section -- the rates in the democratic primary.
Jerry -- of one if he hadn't even got Jesse Jackson as his running -- going in New York I.
I think Jerry's repulsive -- -- proposal with the white one detail and the Democrats started it.
They've got there what what are you what I mean their proposal -- -- who you know I've I lament that.
I didn't I don't have a good Jerry Brown went on the wayward -- followed over thirty years but he's trying to get back I think.
Yes I did the governor I don't know about Jerry I'm sorry.
You never know about Jerry well there is a problem.
Because right now we you know we do know about this president we still apparently don't know about governor Romney.
And shame on his campaign staff but the fact is he's running basically yeah you know within a point -- two of a dead heat.
But where this president.
Is that your judgment that he needs to let go of the economy and start talking about leadership -- he'd be focusing on the economy.
I mean it's it's -- -- of them all over the usually on up -- he should be.
An apologetic -- He should say I want tax cuts I want to broaden the base.
I want all of that I want ever want to pay my tax rate not just me.
I want to get the economy going -- I want them all the make as much as I get.
You know if you look at Obama's tax rate -- the same thing -- Obama as -- there's nothing wrong with that tax -- the problem is the economy jobs output.
And frankly -- more investment more -- -- more employment and you don't get that by why hasn't people who work.
You think everybody's.
Well -- -- I make this non gender specific.
Do you think everybody's prepared to be adults and talked about -- and by the -- when I -- -- everybody -- about.
Our governor Romney and the Republicans.
As well as the Democrats start talking about what it means in this country the business practices that are being followed.
By US multinationals.
Trillion all over a trillion dollars absolutely.
Withdrawn.
From this country because these multinationals are agnostic.
On the issues of so called domestic problems they're American problems these companies are American corporations.
We're talking about business practices that have been absolutely.
Destructive.
To the middle class neither -- this president -- this governor.
Have been willing to address those issues why is -- we can't get.
Economists in academia -- stand up and talk honestly about why we are not investing in this country why we don't have a savings rate.
Why we don't have anybody with the guts to stand up and say what.
We're not gonna putting more money into training -- -- -- -- don't know what they -- the jobs will be in this sport changing global economy we've got to invest in education.
Well I'd stand up -- at -- little podium here that -- -- fall over but no but seriously.
I've -- Levy we can bring that money back very quickly just give that a -- correct tax rate and that money he'll come right back into the US to provide jobs output imply by the way everywhere -- I'm not -- -- highest corporate gaps there got another way to do it true.
You know and and this is really -- ready.
You tell -- CEOs of those companies you know what we're gonna do we're gonna work -- patriotic.
-- companies.
Are doing what's right for this country we're going to -- you to -- -- that money -- we're gonna find some ways to give you some sort of moderate modest relief.
But we're not gonna give your free -- those days are over.
And you're going to invest in this country if you're gonna have access to our markets and if you're an American company you're gonna pay American taxes because.
We need your commitment to this country desperately.
You know I think you catch more flies -- -- with sugar than with vinegar however -- -- this I would say that's been ever I don't that's been ever.
I mean that's what we're happy you're you got a president telling everybody in the country they gotta pay more taxes.
Well that's not good either I mean that's the way it should be where you tell me how to -- back.
I mean if I sit here and defend either gonna get exactly as I please check.
-- you know that is in -- that's not -- But let me go to the 86 tax act.
We got 97 votes in the senate three Democrats voted against those we lowered the highest rate to 28% we broaden the base it was static revenue neutral -- -- Really really worked at all these Democrats that they were all there that they voted for -- -- ever voted for Barbara Boxer vote and 86.
Crying out -- We're talking about our on our way to what trillion dollar trillion dollar in public in in national debt.
We are talking sixteen trends last four years of trillion dollar deficits -- -- -- have the same affecting you know that Arthur.
In this -- collar -- -- this is almost over stimulated economy and that every.
Not -- in history and vegetable.
Well you know if you think stimulus spending is stimulus I don't think so I think it's taxes I want would not love that line that government spending is taxation partners and then they -- create our source of corporate power here.
You know -- -- towards stimulus all -- We have acted like -- why didn't say what impact -- -- what impact will -- have.
In the midst of this massive debt.
This over stimulated economy all this monetary policy that is bloated beyond even crazy just great imagination.
-- -- we -- have fresh thinking we can't go back -- to the old ways we've got to have those who will deal with policy.
With Euronext an economy that we have and it is.
You're borderline -- hearing a little bit.
I think gold line arithmetic all -- get county is still good you need sound money.
Free trade.
Minimal regulations low rate flat taxes and spending restraint you get those five little stand out of the way in this economy will war and will bring that deficit right down with.
Well tonight on standing up you know I'm standing up part okay I'm standing up.
I appreciate it thank god in your lucky it was -- -- Iverson.
