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Former Reagan economic advisor Art Laffer on the government’s efforts to increase revenue to prevent a financial calamity in the U.S.
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Tax hikes I think they are on the way spending cuts yes may be promises -- are also -- make all of this the battle over the fiscal cliff.
Joining us now is online -- former advisor to President Reagan and of valued guests on -- and company are welcome back.
Thank you very much it's likely to be about.
If you I like the look without knowing it -- if -- our wonderful word yet it is worth it with forgotten the true meaning of value if -- last -- but that's another story short.
And I'm sure I've been saying throughout the day that I think that may -- well be a fiscal cliff deal and that deal would be.
-- taxes now immediately.
Promises.
Of spending cuts down the road and according to Richard -- -- don't care about the deficit.
Do you go along with that you think that's the -- deal that might shape up.
That that makes sense I mean you know frankly I think the Republicans have lost part they shouldn't have.
But but they have and I think that's probably the type of deal you'll see happening.
And you'll see a fiscal cliff I don't like to call the fiscal cliff Stuart I like -- caught tax would get.
If those tax rates on the rich go up you're gonna see a very poor performance in 2013.
In effect you're gonna see it anyway because.
People -- already shifted and come out of 2013.
Into 2012.
And it's already baked into the cake to a large extent yet you're gonna see a real drop going.
I think you're right about that is a lot of tax planning going on in the next few weeks already Tonya yet because you want to shift I'm -- -- Yet you shift income into 2012.
As much as possible and remove it from 2013 could -- face a higher -- if you're making serious moment.
Yeah and not only that but if you look at the growth rates in 2012 there awful and that's after being inflated by this tax shifting.
And you know we're gonna see a very sharp drop in 2013.
And that I want to see what congress does but I think the Republicans are making a huge mistake if they concede.
To the Democrats these issues I mean that you got to remember they won more that they want more than half of the seats in the house all of them a contested elections.
I mean -- four years ago with controlled by the Democrats now it's controlled by the Republicans.
How picked up one governor a couple of state houses switched over so you know it's in the Republicans are of -- loss that we lost the presidency.
And we lost some of the governors are some of the senate races because of poor performance on the candidates themselves so.
I don't think we should give up on on the growth agenda.
Don't give -- -- -- shouldn't but we shouldn't give up I understand.
But I think -- -- inside that we probably that the Republicans probably will -- you you you go and I think it will yes -- I agree all I totally agree with that.
But they shouldn't -- -- got it and especially not on tax rates on the rich because.
You know -- the high income people who determine the jobs -- employment but.
That's right -- they're gonna make their biggest mistakes cannot just bring in another story all would you're just hold on witness and watch -- -- -- -- -- bring -- viewers and to this one.
Next stories Greece Greece just passed another seventeen billion dollars worth of austerity -- nations.
There was rioting in the streets of Athens for the -- straight day.
Violent protests you watch the video Molotov cocktails thrown always seen that before police engulfed in flames really nasty stuff cinecast -- -- Now a lot of people ought to know you've seen this you know the reports about -- more austerity in Greece.
But a lot of people say to -- -- all we in America we headed down on the same road.
My answer is yes we are -- would -- when -- the Greece situation yet what do you -- Polite.
Think the US is really leading the parade here and they Greece just happens to be the most vulnerable country in this process.
But a Greece's following the example -- the US over the last 678 years.
So -- Spain -- these other countries and the US is the central nation.
Of the world economy we are the leader and if we don't show fiscal discipline.
If we don't show how to run things properly how can we expect Greece to do it what's the -- -- and not doing what's the end game.
I mean we're gonna have the end game with the US yes but bull what we -- -- game playing out what happens to us do we suddenly have a Chrysler -- nobody lenses the money.
We print up a storm watch the actual and how does -- walk out.
In the US I think the end game changes in 2014.
With the -- elections.
I think it's changes in the state and local governments going we have a huge battle amongst the states and I think we get to a pro growth agenda.
As we have not seen in the long time we're gonna get a Ronald Reagan in 2016.
And the US is gonna take off from the rest the world's gonna -- A comedy and come back in line.
If you look at England for example there's you know with Clegg and and Cameron if you look at what's going on France.
It's all the same it's the US that is not showing the leadership.
That we should show politically.
To really get these other countries in line to getting their problem solved along with -- he adds value to the showed us now at all laugh he -- that -- value excellent stuff.
Thank you watch -- always apologists like you very much Stewart well for me to thank you.
