Fox Business
Expand
Browse All Video
Watch Live

You're watching...

Stockman: We Can't Afford Tax Cuts, Deal with Deficit

Details

  • Description

    Former Reagan budget director David Stockman weighs in on the tax debate.

  • Duration 5:10
  • Date

Clips

Also in this playlist...

Latest Video

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

Back to it thank you called.

On FOX News Sunday this weekend host Chris Wallace had little trouble getting information from vice presidential nominee Paul Ryan.

On his tax plan -- some of them but.

Cutting tax rates is lower all Americans tax -- point one how -- -- -- cost.

Its revenue neutral but they're not it's not revenue neutral unless you take away that the -- that's that that's we're I don't -- -- -- -- -- we're gonna get to that the second the first half but I have to monitor and obviously haven't given me the map that we you -- well.

I don't -- it had.

It would take -- too long to go through all of them have.

It would take too long for him to go through all the math.

What does David Stockman think -- he's former budget director under President Reagan an author of the trying out.

A politics David good to see as always.

Is that a mistake for the right what ago saying I don't I just.

-- -- it's it's pathetic I mean this Nixon's secret plan you know forty years later if they really think they can cut tax rates and they're gonna close these massive loopholes and expenditures they have to name them you have to be honest with the American people.

They're being totally.

-- honest.

And somehow they think that people are going to buy it.

What I think it's shameful.

What did Sonos is a big work because as it Mitt Romney's kind of alluded to while.

We need to let congress you know this will be tax reform comprehensive tax reform what's dishonest about that.

Because if you don't tell the people the American people exactly where you're gonna get all this revenue so that you can give -- -- tax break to everybody.

Then you're not really preparing the way your not getting a mandate.

So that once you're elected you can actually do something are they gonna get rid of the health deductions yes or no it's a 180 billion.

Are they -- -- wipe out the retirement deductions employer.

Ira and so forth yes or no it's a 170 million are they gonna wipe out homeownership -- -- hundred -- They won't name a single name and I think is really just.

Another indication of how far the Republican Party has gotten lost because this unwilling to tell American people the truth.

And that is we can't afford we can't afford any tax cuts we've got to deal with our deficit.

And that's gonna mean spending cuts for everybody and it's gonna mean probably tax increases for a lot of people.

-- is a mistake to run on this at all -- -- having that would how can you focus then on.

Because the central issue for the American people is we want in congress we want jobs I think -- eat it from 35000 -- How do you run.

And talk about that without linking tax policy to -- -- Because is really running on it did dip because that it.

The opposite would be saying we're gonna get rid of these deductions in some people's taxes are gonna go up that's not gonna win new White -- that.

Well no but -- the -- here is the we've been kicking the can for thirty years both parties have been deceiving the public Obama's just as -- I'm not making a -- for him.

We can afford to give anybody anything anymore we're broke we're running a trillion dollar deficit we're pushing twenty trillion dollars worth the national debt.

That is -- finance today only by the insanely low interest rates maintained by the Fed that can't continue.

And so once we start paying a real normal interest rate on that twenty trillion it is gonna send the budget even deeper.

All of what you.

All of what you're saying makes perfect sense but -- argued for years.

That the American people won't vote to fix that until they feel it at home and I'm talking about runaway inflation like you saw the 1970s euros until you talk about sky high interest rates.

Like PeopleSoft thirty some odd years ago and that is not the case today so.

Do you think the American people if it was laid out just like that would vote.

Based on that.

I I think they won't have a choice in other words when the crisis comes we won't have a choice to say let's wait another couple years until things get better.

We're gonna have to face the music like Spain is like Italy -- like most of Europe is today.

The only reason that we're not being forced to make the choice why this election is being wasted is the Federal Reserve is Bernanke is Evans is all these lunatics -- driven the interest rate down to zero.

And they're telling congress in the presidential candidates don't worry about the deficit.

Because you can finance another trillion dollars for free.

Today you can borrow five year money for seventy basis points I spent a lot of time in Washington.

I know the seventy basis points point seven is around the -- to them it's free money.

So if we're Romney really wanted to attack the problems of this country.

He would say solvency is our number one problem and we're gonna go at this budget and get it under control including defense and number two.

The economy and capitalism -- being ruined by the Fed and I'm gonna clean house and day one -- one job one Bernanke go.

Well he sent us some of that just -- -- -- -- really -- not quite likely.

Admit this government needs to say it well in the debate there's always a debate on Wednesday thank you so much -- fantasy and it's not be well all right the.

Load More