You're watching...
EPI Director Christian Dorsey on the potential impact on jobs and economy of tax increases on the wealthy.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
I -- -- 150000 dollars a year or not you're going to be affected by the tax hikes -- the wealthy why.
Because it's gonna kill economic growth that can make it harder to get a job seems obvious to me.
But it new Congressional Budget Office report are mixed on the topic Christian Garcia is the director of external and government.
The institute.
Consistently report the CBO proves me wrong and he's here to disagree with me -- -- are coming back on the show it's.
It's always fun I have to see in anticipation.
And to.
How you can you know you like a CBO report right -- think it proves that we should go ahead and just tax the hell out of everybody.
None -- us you know also -- -- those similar finding several weeks ago.
So it's nice to -- confirmed by the Congressional Budget Office it is not to say that when you.
Increase taxes on the rich there are no negative economic consequences of course -- all right we'll.
It will cost jobs the question -- -- it over.
It -- -- jobs much less than doing other things if you went further and that reported also talks about how the -- The expiring payroll tax cut -- well as the expiring provisions on unemployment insurance.
Will actually cost.
Up to five times as many jobs as tax cuts for the rich -- -- better -- -- to use our public dollars then tax cuts for the rich I.
That's why we're saying I.
I don't know why -- would wanna raise taxes on anyone when the economy is basically stalled it just seems crazy to me.
Well at some point you know everyone says in Washington and we need to do something about our deficit and here's a good place to start.
If you need to actually bring in some revenue the best place to do what is where it's gonna do the least harm.
And that's on tax cuts for the wealthy.
That's something that is really unassailable -- we -- conditions when we didn't have any deficit issues of course who would have any need to raise taxes on anyone.
But we do have competing priorities and do have to find a way to start paying for them.
You have a revenue problem we have a spending problem and we're like drunken sailors we've got this credit -- we can we can run it up forever.
And we just -- But you know that also has consequences as everyone knows what you -- so called fiscal cliff discussion if you cut spending too much you also drive the economy.
Into an abyss so you know we'd all like to say we simply cut spending in in live within our means but it's not a simple was that.
You can also cut spending too much so that you actually hurt the economy that you're supposed to help.
Simply and I agree with you what you're saying and and it's it this is way to civil site got to train.
-- -- out is just how far right -- what's the point of doing it I think I'm Melissa -- and yet we district.
They're -- and there have been many times in the past when we've actually lowered marginal rates and increased revenue I mean if I were to concede that this is a revenue problem which I'm.
Not going to -- for the sake of argument.
I mean under president Kennedy for example where you reduce the top -- for more than 90% down to 70% in in that time.
You know revenue into the treasury went up from 94 building into -- 153.
Billion by lowering the marginal rate right there.
I mean yeah sure yeah I look I am not.
You know we can we can look at that but remember that was -- 1960s the problems that we have today are a little bit different.
And the problems and our economy right now the -- the reason that -- in this economic Malays is because we have this big gap.
Between what the economy is producing.
And what it can produce and the way to fill that gap -- shrink that gap is to get more people out there buying things and spending money.
So they're going -- -- The people doesn't know your government raising taxes I mean I agreed to -- We need to get out people out there investing buying doing -- so raising taxes on anyone is then super crazy.
Yeah but if if you take if you take tax increases on people more spending relatively less because they've already got.
All whole bunch of money and investing in ways to get people who don't have as much to spend more that's much more efficient it makes much more sense it is it is.
-- -- spend a lot of money.
I'm rich people have a lot of money there are already spending -- there are gonna spend any less because beginning marginal tax rate increase it's not like all of a sudden.
You know Michael Bloomberg -- Mitt Romney you're gonna say all we can't go out to dinner next week other still gonna spend their money.
This is -- -- -- saying how do we how do we get people who are not at that level to what have the conditions where they can -- How about in the eighties I mean it was the same experiment where they lowered marginal tax rates and once again you saw revenue go -- -- phase it's 43% cut in tax rates revenues 1980 wants 1988.
Went from 509 -- -- billion to 909 building it I'm just saying.
If you if the problems revenue and you want to bring in more money the treasury it seems like there have been periods in time we have done it definitively according to the map why don't we.
Canada that is true but we also you know we look at the sixties and we look at the -- how about we look at the 2000 it's.
Where we -- our most recent tax cut regime and what did you do in terms of the economic recovery gave us the worst performance.
And economic growth in the worst performance in job creation and so -- we can look at different periods and and see.
And see that you know tax cuts are not necessarily the solution and all certain -- Alright Christian thank you for disagree with me was a lot of pardon.
All right Melissa greatly me again we well without question to be less civil next time.
