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Former Office Depot CEO Steve Odland on why tax reform along with spending cuts is needed to avoid the fiscal cliff.
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If you're business and you're unsure about what his country's going to just Coca -- in the end of the year -- you hire an environment like that.
You have 54 days to this end of the year a lovely event.
Armed would you hire in that environment.
Well former office Depot's CEO Steve -- has of course you when he's not surprised many years so many CEOs are reluctant to do that.
Bomb but the closer we get to this deadline in the more unlikely it looks like bill cobble something together you know hope -- they -- Steve always.
You know springs eternal but.
That's -- more likely that companies just keep their wallets closed their plants tight as a -- and then what.
Yeah how well it we had the largest drop in the stock market today that we've -- all year and that's because yesterday the status quo one.
And that status quo.
Has.
Situation here where -- running trillion dollar deficits sixteen trillion in debt and we've got a fiscal cliff coming here in a couple of months.
And everybody saying the same thing we need fundamental reform here we've got to deal with government spending and.
Warm was rejected Steven out of the you have to take.
Political sides -- to say that reforming the financial system reforming the budgetary process.
Obviously wasn't a top right and americans' minds when they.
Where they want to continue what we have so I don't know how more discouraging that could be to the markets I'm not at all surprised.
They sold votes of the do greeted it.
Well I don't think reform was rejected yesterday I think what will have a copyright is I don't know I'm not I.
I I think you're absolutely not because I think American people.
Need you are formed a half and we need to spending to come and find someone needs a more -- -- someone has to Boeing now many are no -- -- you.
Well let me answer -- many -- that speaker John Boehner did quads I -- by -- he's open to compromise on revenues signaling I guess.
Democrats should be open to addressing entitlement savings may -- they'll get that part but they got 54 days to do it.
You've got both sides here saying we need to cut spending and we need to raise revenue.
Speaker Boehner said it today right the issue isn't race or.
Reform and businesses.
People cannot withstand more and higher rates we have the highest tax rates in the world for corporations.
And we can rate we can take all the money.
On the wealthy people in this country and it will only run the government for a few weak -- -- raising rates.
Compromise is get -- credits get rid of special allowances don't mobile world rates themselves would that.
Be tolerable.
To a lot of years CEO friends.
Yeah I think that's what the CEOs are saying I mean the it we've we've run that committee for economic development -- run three endorsement campaigns everybody saying fine.
Raise more revenue we need revenue we need to cut spending but it needs to be a balance of both but it can't be through rates because he'll destroy growth.
That's the issue we need a pro growth policy here in the only way to do it is to deal with tax reform in a way.
That flattens it reduces the loophole I know it's.
It is not rise I you know I just don't see it steel and a use your -- more -- -- that this stuff and the people who mattered and I am I just don't see the will on the part of this president who argued fairness.
In the tax go to the rich paying more.
Dismissing the back of 47% pay no income taxes and all that I'm not saying all the 47% are.
Are just you know suck ups of the government.
I am saying something is -- on our system when it's it when it's grown to that number.
They have pay no federal income taxes and the president's he's the only way to ameliorate the situation.
Is to stick a higher bill on the feud new -- And the math doesn't work right clearly an -- and if you raise taxes on the top 1% so to speak.
You have to remember three fourths of them are small businesses.
And two thirds of the jobs in this country are created by small business as you will kill jobs in this country if you raise rates it doesn't work.
Therefore we've got to go back.
To Rivlin to -- she.
It is Bowles Simpson.
We've got to use those as starting points those are bipartisan.
The starting points in both cases you've seen speaker Boehner come out today.
I think there is no choice now I think the lame duck congress is the wrong place to do it I think it's gonna happen beyond that's they've got to take some measures today and there are some negotiations going on.
But fundamentally you cannot get there without some fundamental reform and I think it has to happen.
Well it might be sort of like group cart before the horse that video work you both -- -- the parameters that is both parties.
Extend everything in into the new year you work on it but we'll -- Steve thank you very much always a pleasure.
