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Krugman’s ‘Fair Share’: 91% Tax?

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  • Description

    FBN’s Lou Dobbs on economist Paul Krugman calling for top-tier earners to pay 91% income tax.

  • Duration 4:40
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New York Times economist columnist all -- Is arguing for a return to the 1950s when incomes in the top tax bracket and the pay a -- -- tax rate are you ready.

Of 91%.

Here's part of what -- you wrote in the times in his column.

Quote America in the 1950s.

Made the rich pay their fair share -- 91%.

It gave workers a part of bargained for decent wages and benefits -- I'm trader.

Right wing propaganda define right wing propaganda is anything that disagrees.

With progress.

Then and now it prospered -- we could do that again.

So apparently this Nobel Prize winning economist.

Just wants to well.

Raise taxes to 91% every -- refi.

And these tax and spend liberals are really truly something else.

-- is that a class by himself however he fails to talk about it and we will hear tonight.

The fact that back then we -- a responsible government and responsible economists amoeba purest possible problems here here's a comparison that we wanna draw upward we've met.

In 1955.

The middle of the decade federal spending was just over 715%.

-- GDP 17%.

Now just about twenty.

3%.

Of GDP the good old days -- -- not -- federal deficits -- point 8%.

Point 8% that's.

Point 8%.

Of GDP now -- trillion dollar federal deficits amount to seven point 3%.

Of GDP.

Back then trade was a contributor -- economic growth to the economy.

We're bringing in 500 million dollars or four point two billion dollars when adjusted for inflation.

And now we're running a trade deficit.

A trade deficit of 536.

Billion.

Dollars 530 cents.

Billions.

-- Back in Social Security made up six and a half percent let's go to social -- six and a half percent.

Of the federal -- 16%.

Medicaid and Medicare of course didn't exist back then.

So let's compare that six and a half percent to what we're doing now we're spending 40% of the budget.

On Social Security.

Then we throw in 21%.

More of the federal budget.

For Medicare Medicaid.

And and another 13%.

-- other social safety net programs food stamps so that comes up to a whopping fifty work.

Percent of the bunch.

54% at -- -- forgot to mention that I mean it's kind of important as it.

Back in median family income was about 38000 dollars.

38000.

Dollars.

Today it's 62000.

We'll pretend that looks like two.

And that that was part of six.

-- 2000 dollars.

-- we haven't done too well in worth of more than half century.

In raising.

The median income in this country and that's something that he is right about we do have to fix that.

That you do that through economic growth you don't do it by raising taxes they're -- -- 1% recurring outlaw.

I mention that he -- a Nobel Prize.

-- -- Sort of President Obama and and the unions back then they made -- 24%.

-- 4%.

Of the workers back in 1995.

A 1955.

Today that number is -- rather convenient because it makes it.

The reduction by hand with 12%.

Right now.

That tells you which way the country's moving in this nostalgia on the part of crow about.

-- -- 91%.

Tax rate.

I want you -- now.

And if ever there were evidence that Nobel Prize doesn't -- genius.

I think we could start.

-- mr.

Krugman.

And the number 91.

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