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Ron Garrett, Patriotic Millionaires member and investor, on his involvement with the organization and what he wants to see from the fiscal cliff talks...
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Higher taxes will some millionaires actually do -- they've taken their fight to the White House but the threshold of who should pay.
Is that higher than some in DC proposed joining us now is rod Derek.
Investor patriotic millionaires member right good to see -- thanks for coming in appreciate what we'll get to the details in just a second but.
I pay 50% of my income in taxes taxes of all kinds and end of the work patriotic millionaires kind of bothers me a little bit I think does a lot of other people who don't think that they need to pay more.
Then 50% I don't think I need to pay more than 50% of my income tax but I don't think -- unpatriotic.
For thinking that way -- you.
-- and in fact that's exactly why we are calling yourself patriotic because.
We are actually paying less than 50% and our taxes were probably making more money than you are and we don't think that's fair so.
Isn't the best way to make things more fair that the idea that we saw -- the Simpson Bowles report of lowering tax rates and getting rid of the deductions.
That allowed millionaires like -- to get away with not paying that much.
Yes that would be -- a great step forward OK but you know that the president is not for that he's insistent on raising the marginal tax rate.
Yes and I think that's also a good step forward that we it's a very complicated problem.
No single measure is going to solve the problem by itself all -- and so I'm all for closing loopholes I'm all for raising more -- top marginal rates.
And especially for capital gains reform which is one of them -- the big problems it is.
And their whole bunch of other things that I would do if I more king of the world.
But this is the one thing that I can and step up the plates and you know do my part.
Now you and I could argue because of the various points of the laws -- but.
But there is one point I think that that you may be getting somewhere in that perhaps the president and the Republicans could get somewhere to compromise.
The folks and I know you weren't at the White House for this meeting but at that meeting last week there was a letter presented to the president I wanna read part of that letter because.
That seems to me to be a shift in thinking about all -- -- as we ask that you increase taxes.
On incomes over one million dollars we make this request.
As loyal citizens who now or in the past -- earn an income of one million dollars per year or more so.
Your letter or this letter from from your fellows and -- in the -- tribal leaders would exempt the first.
One million dollars from a tax increase are you okay -- that.
Yes I'm one of the big debating points is where you draw the line between.
Who's rich and who's not and and I don't really have a strong personal position on the is probably somewhere north of 250000 but by the time you get -- million dollars a year I think everybody would agree you're rich okay.
-- know you're a scientist you know numbers the president says that this is all about math but.
Oh let's just do some of the math here because if the president gets everything he wants if he gets all the taxes -- to the amount that he wants.
That'll increase revenues to 82 billion dollars a year now the deficit for the past -- -- has been over one trillion dollars.
That's only 8% where does the other 92%.
Of the money to pay for this increase spending -- best warriors come from.
Well we have to tackle this problem one step at a time.
And just because taking a measure is not gonna solve the whole problem is not a reason not to do it.
But.
There are.
Other things I would look at increasing corporate taxes.
If it were up to me I would like to cut defense.
There -- you would like to see some entitlement reform I am pretty -- -- -- I think for Social Security which gets in trouble with some of my liberal friends right.
Well that's it that 92%.
Cannot be avoided -- the fact is is that raising taxes.
The one way in which you can get a lot of extra income is by growing the economy that's what we're talking about increase revenues.
Of hundreds of billions of dollars and the thing that worries me most about the idea of raising tax rates right now when we're sort of on the precipice.
Is that we may slow the economy even more than it already is and that would mean less revenues not -- Yes so this is another one of these very complicated issues.
But there is this myth that -- raising taxes on rich people as a jobs killer simply not true if you go and look at the historical data.
The periods where the United States has been his most prosperous.
Almost exactly coincided with a period from the top marginal tax rates have been the highest thirty years after World War II.
Top marginal rates were never below 70% and they were as high as nine okay.
Rock rock -- writer -- it -- I know that economists it depends on which.
Number of years which grouping of years you use some and I could point out to you that.
In the 1920s and lower tax rates we had a boom in the 1960s a lower tax rates we had a boom in the 1980s they lower tax rates -- so the opposite case can be made depending on what you're you're gonna -- a boom that's all that's followed -- a really big bust.
So what happens -- a relative that it wasn't really that's not true was it did the boom period in the 1980s from 1983 until 1990.
It's true there was a recession but we were out of the recession at the time the election in 1992 -- -- Was a huge bust.
DP peace process he's play themselves out over long periods of time the Great Depression was a really big bust.
2000 the housing crash was a really big bust and it would have been bigger if not for heroic efforts by the government to stave off catastrophe.
Our all right well listen that the one thing that I think we may have made a lot of progress on is at least moving that.
That mark from 250000.
Up to a million that that may be a little bit of an area where there could be -- price.
-- it's a pleasure to talk you thank you very much for coming and Brian Garrett.
Investor in patriotic -- appreciated.
Thanks for having me thank --
