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Scott Hodge, President of the Tax Foundation, and Michael Linden of the Center for American Progress discuss which candidates' tax plan is better for ...
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Business.
-- your taxes go up or down next year.
-- debate this series tackles a different issue that matters each day up to Election Day.
Both candidates talk tax cuts but they differ on who should get -- and how much.
Here for some clarity.
Let's start -- just basic direction Scott -- tax rates need to be raised on the rich or lowered for.
All.
They need to be were lowered for all and that's why I think Romney's plan is superior to what Obama is offering.
Well when we look at Romney's plan we find it'll increase economic growth by about 7%.
Over the long term and increase so wages and living standards and that's the real key here.
Whereas we see that so Obama's plan to increase taxes on the so called rich well actually to slower economic growth.
And slower incomes overall.
Michael -- -- he sect.
That's I mean if there was a unicorn that could fly then everything would be great I mean that that those numbers are completely.
-- odds with what we know about history which is that when you lower taxes for the rich you don't get better economic growth you just get big deficits which is what you'll get.
Under the Romney -- tax cut plan.
Actually you know it's it's the deficits come from spending if if you look at the bush tax cuts Michael -- they went to place at 03 the next four years federal tax income revenues went up 44%.
So let only 26% so -- -- -- -- -- be out tell you right now but at that at the peak of the bush economic period and it wasn't a very high peak tax revenue was still lower that that it was under President Clinton.
Tax cuts cost revenue and the fact we've NAFTA debate this is really really disappointing focus I want to read I'm Mike I don't know.
You -- raise taxes Michael.
I think we should raise taxes on people who can afford it.
And I think which compare that with some spending cuts that are reasonable OK and you get to a sustainable about Bob budget and that's exactly what the president has proposed -- Scott you know for those who aren't and 1% it sounds -- -- Obama says just raise taxes on the rich.
But -- Obama saying let's extend the bush cuts for only one year for people under 250000.
Is Obama sand and then I'm going to raise taxes on even those people after one year.
I don't know what he's -- other in the fact that.
Now we've got -- half the tax code is now on -- thirty year lease and that's I think one of the reasons why the economy is slowing down there's so much uncertainty.
But due to taxes and has not just the -- expiration of the bush tax cuts.
We've got obamacare kicking in next year.
We certainly we haven't even fix the tax code for 2012.
So be able don't even know what they're gonna -- for this year salute I think that we need to clear up the uncertainty.
We alternately be fundamental tax reform.
And that's gonna take leadership in the White House not demagoguery.
-- Michael you -- Democrats keep criticizing.
Romney for the fact there's own personal tax rate was 14% when the man makes no salary to makes only investment.
And come what did Michael -- -- -- million -- should have been willing.
-- -- -- -- On capital gains forty billion dollars a year eighty page 14% in taxes was -- that if its investment and we wanted to incentivize investment income do you think that there should be no tax break for capital gains for investment.
Look it was -- -- not a whole lot of evidence that a tax break for investment come actually does anything but even if you think there should be.
The fact that right now the break is twenty percentage points is totally on -- unreasonable even if you wanted to maintain a tax break for -- for investment you can go back to what was in the ninety's when it was closer to 10%.
And you'd you'd raise some money you still have the investment incentive even I don't think it actually doesn't think Michael I've been asking my liberal friends this for a year and no -- that maybe you can finally -- -- Michael.
If the top 1% of earners now pay almost 40% of federal income tax and that's not -- that's not their fair share.
What do you want the top 1% to -- as a percentage of federal income tax how much more than forty what's fair.
It would that the reason nobody answers that question is that is not a particularly good question the reason they pay us the income tax about that is the equivalent of Michael pulled -- The reason they paid most of the income taxes because they make most of the income of course they pay more any contact one.
Or in order to get me a percentage Michael Scott what -- you think Michael wants that debate.
Well let let -- -- -- -- here Ali and IPO -- what does that Scott what they've done again.
Wanted to talk about the fact that half of all Americans pay no income taxes and we have -- most progressive income that god has done got in the and I realize that it also let my till -- believe Portland that is so unbelievably misleading and you know it because you know I don't if you have.
That's misleading Michael why haven't -- 'cause misleading Scott let's -- -- help manage what percentage what percentage of total federal revenue is the it is the federal income tax.
-- you know that it's 40%.
The rest of the revenue that comes into the into the government that is paid by -- everybody this idea that half of Americans are paying taxes is totally.
They don't pay income taxes but you know what you're playing Michael -- -- -- -- don't.
Developing you've got a very good debating -- -- packets get Michael -- gotta -- -- you both get a good debate.
But I think for the American people is gonna come down to one -- talking about want to disturb growth and cut taxes and other -- talk about want to raise taxes on some Republicans keep spending more.
I can't wait to see -- -- -- turns out thank you so much Americans wanna raise taxes on rich people -- well it seems like yet -- reflects on everyone Michael but banks and I'm sure you look forward opinion more.
