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WSJ Editorial Board Member Steve Moore on the potential tax hikes in an effort to reach a deal on the fiscal cliff.
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Voted and they chose.
Higher taxes even speaker of the house John Boehner today -- higher taxes could maybe be on the table.
For the purposes of -- a bipartisan agreement to begins to solve the problem we're willing to accept new revenue under the right conditions.
Steve Moore editorial board member at the Wall Street Journal joins me now he is the author of who's the fairest of them all the truth about opportunity taxes and wealth -- America.
We're getting what they are talking about -- that is if let's bring -- our tax rates down and then close out some deductions and loopholes it's not like he's saying.
Let's raise taxes on the wealthy right now and and really -- -- some big time and that's what they don't.
Believe -- -- injury that's what republic general have been saying for the last three years remember when we had the super committee that was supposed come up with four trillion dollars of cuts and and that's been Republican visit -- Barack Obama won the election elections have consequences -- He ran on the fact that he's gonna raise those tax cuts -- those tax rates on the rich so he can claim that he's got a voter mandate to do that so.
I would say -- -- can't as a little weaker today than it was 48 hours ago.
But now that I think the real question is can he negotiate something so the rates don't go.
In on interest -- pay dividends.
What exactly are they just you know -- -- a crystal ball.
Right here -- tell us what Obama wants to do with taxes and what that tens of -- have a work but doesn't take Christian -- Aziz told us he wants to raise the dividend tax from fifteen to 43%.
He's told us that that capital gains he wants to go from fifteen to 24 that's about a 60% -- And then made the the individual rates he wants to -- people make over 200000.
That would fell from 35 to like 42 here's the problem with that.
You're just killing -- the finished -- when you are even more that's right I mean in bad luck.
If you looked at the last GDP report and last employment report what they were telling us is the sickness in the economy are now businesses.
Are.
Investing they're sitting on the sidelines that's been a problem for 23 years now.
Why would you wanna raise business investment taxes -- came in and out investing and that's so you're exactly right about that point does the worst time to be raising that capital gains.
And here's my fear after what happened yesterday.
They're gonna pull the reins and even more because of fiscal clip is now -- 54 days away.
And if you don't you -- -- CEOs are looking for a friend in the White House not somebody they can't predict.
Right and so I think they'll do well in those Poland that spending this is -- We really interest the next few weeks because as you know we have a lame duck session that begins I think begins in a -- -- -- Now they have to deal with the tax issue that we just stuff and then have to deal with this stunning -- now.
Look I disagree with alive and -- -- on this.
I've -- fashion I think if you cut government spending it is good for the economy it's not bad for the coming -- People get government contracts are gonna you know probably have to shrink their businesses but private businesses that don't get government contracts are gonna more money.
So and by the way how can bitch.
I don't read the report how can they say that if we do -- spending cuts in the tax increases it's gonna hurt the economy.
It when when they were saying two years ago we don't do something about our deficit it's gonna it's gonna well -- -- -- Don't young -- with -- -- rating agencies it's too little too that I did not you know cry.
We're having real problems and could -- -- -- that we hear from them every twenty minutes now that.
I do watch this thing I'm not so sure that maybe just doing a sequester and across the board cut in these programs.
That might actually be a healthy thing for the coming -- thank goodness you know this couch -- right right.
Human -- there's one private business has come to the right now -- yeah.
What it did the -- one point they're looking you know yesterday having the same analysis jury that led to the conclusion that the government stimulus was gonna -- jobs that didn't.
So I welcome -- -- government spending is.
Up for the economy it's not meant that it wanted to see less of it yes -- weren't role here let me tell -- -- -- how are you can't cash.
I'm talking about -- -- your favorite topic to California passed a measure that raises the sales and net income tax for high earners.
What's don't -- -- Addiction you have that California where you can have me around your we'll -- it right.
I actually think that your -- so -- rich people leave the state of California now I mean -- businessman and woman hours a week they can go to Texas they can go to Nevada they can go to Florida where there's no income tax at all.
-- and I think you're gonna have I think this is.
This is the end of California as we know what -- -- -- on Italy I -- well yeah.
Worst it's gonna get -- I think every flexible you don't just make you mad 60% favor higher taxes on the wealthy exit poll -- Nearly 6% approve of Obama's tax plan.
You're you know yeah the crying in the wilderness it's a tough.
It's a tough market out there right now but I think Republicans need to stick to principles say look we we believe that keeping tax rates low is good for the economy we've got the historical evidence to prove it.
I've Democrats want to raise taxes go to let but I don't think Republicans should be a partner in that.
See more we have so far to go -- this and I don't know going to be with the show every step of the way -- -- having it was a lot of funding in Boston last night.
Element of party whether it -- what's fascinating up.
Just a fascinating trip interesting to see the people there who is there talking the people meeting a lot of interesting people we -- Carlos Gutierrez.
He was a former commerce and commerce secretary bush.
Official he was fast that's been like awake after 1030 and -- pretty cool pretty quiet pretty quiet she thank you thank -- So.
