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Forbes Media chairman Steve Forbes on major CEOs calling on Congress to reduce the deficit with tax revenue and spending cuts.
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-- later the hour but here's a big story today you have more than eighty.
Big name CEOs posted a letter of the Wall Street Journal calling.
For deficit reduction what they said with something specific they said we -- cuts to entitlement programs yes but we also need.
Higher taxes or effectively higher taxes more revenue -- Steve Forbes is chairman and editor in chief at Forbes media Steve is here in studio to talk to us about it but first.
-- -- Robert -- it's a little while ago caught up with Michael Dell and here's what Michael Dell had to say about all this.
I am the chairman of the and Washington few weeks ago and the number of leaders that are you really believe that some kind of like what you're suggesting anything place.
This -- -- government.
We use this will.
That would be essentially.
-- country.
Play chicken with the with the country which I do not believe there's a good idea you know what.
I think you have to be some some combination.
It's something like the Bowles Simpson.
It was it was a logical way to improve this and also it's also clear that -- -- -- Musician can spend money it's going -- time -- -- -- out all right now here is Steve Forbes to give us is set -- cents or maybe even -- well.
Always good to see you sir is this idea of a balanced approaches mr.
Dell said Simpson Bowles or something.
Close to -- that these other CEOs are endorsing you say what.
Depends on how you define balance if you mean raising tax rates absolutely not what if you lowering rates and broaden the base broaden the base means you take out preferences in the tax code and what they're gonna find out -- -- not going to be able to do this quickly what I would suggest is.
On the fiscal cliff just postpone everything for twelve months have come January could start to do this in a very deliberate way with -- I think will be a new administration and what they're gonna find is you can't tamper with just some preferences you're gonna have to really hit all women begin new -- them so what I think you're seek -- to reprise of 1986.
Governing.
Tell all the tax shelters out of the -- cut to the top tax rate for example -- 50% to 28%.
That kind of thing would be very positive.
And that might even satisfy these CEO it's okay disinterested get a lot of big names on the list -- may not Randall Stephenson from AT&T Jeff Immelt from General Electric is on their John chambers of Cisco it.
-- -- -- eighty CEO's -- on the list what would you have said maybe they did ask you to become -- -- Steve what do you think -- this this specific plan you would have said not exactly.
-- I would have said dove for radical tax reform like 1986.
Right and in terms of spending cuts.
The idea that you can had to have well -- congress new spending cuts years in the future it just doesn't work -- Reagan try to push try to.
They just go on their spending ways so in terms of a reform on entitlements the key thing is -- you're not gonna cut current entitlements politically that this is not gonna happen.
But for younger people who can -- to put in new system but that's a good -- -- the ages and do things like that for people who are well and also ultimately I think is secretly Paul -- like to do is -- younger people have their own personal accounts yes you -- he's -- that's a big debate in the campaign that'll depend on his -- let's go back to Texas is for a second 'cause I think that.
One of the key questions and sometimes people talk around this and don't give a straight answer but I'm sure you well.
The the idea of more revenue so if you if you do do you.
This big tax reform that you're talking about it looks something like 1986 if net net at the end of it the government is bringing in more revenue people -- -- There's more taxes being paid is that okay.
Well if you radically lower rates like you did in 86 I'd take the trade OK but but but the key thing is not to keep these high tax rates.
And and not to -- have put in a massive tax increase -- -- get tax revenue is through growing economy.
We did this after World War II for example slash government spending 70%.
Reduce taxes and the economy boom we've -- ten million veterans we did the same thing in the early eighties cut tax rates.
Little bit of domestic spending restraint political and military of the weak economies boom but even if the closing of the loopholes in and of itself to bring CME CBO does the S and everything else -- -- -- you're gonna have more revenue.
I don't know what you know somebody like Grover Norquist will say for example to the Republicans in congress -- Steve Forbes would say that's okay I'm okay with that.
It depending on how radically they're lower -- that the tax rates because a lot of jump in the code that shouldn't be in there they -- that stuff out I'd say good but the key thing is.
Get those rat drive tax rate six slash and you -- this economy blossom.
And the other thing to do is little bit of the spending restraint goes a long ways and the other thing they didn't touch on.
Is gotta stop trashing the US dollar but that's another subject for another time something we've talked about in the past and as you say we'll talk about in the future it's always great to see Steve Forbes on thank you thanks a lot.
