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IHS chief economist Nariman Behravesh on how to ease the burden of higher taxes.
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You gotta let them get -- stay on the topic of Warren Buffett and taxes if the bush tax cuts disappear for higher income Americans.
Should -- cut off -- 500000.
Dollars in income per household not 250000.
As the president wants.
-- -- bear -- chief economist at high paid just joining us now from Lexington Massachusetts.
Would that ease some of the burden and pain of higher taxes on this economy and -- Well what I want level -- would of course you know raising that threshold from 250 to 500 would would help.
If you -- but these are arbitrary numbers and they really don't do any thing.
To correct what is a big mess and our tax code.
I mean the but the Buffett idea.
May be really is a little bit of pain but does nothing to address the distortions that he's talking about.
Huge distortions.
A 160000.
Pages worth of distortions and the tax code so.
To me this is viewed -- talking about a tiny tiny improvement I'll take care shore.
But it's it's I mean this we're getting distracted on this one.
And he talks and -- Connell was talking about a minimum tax on the wealthy and these are people making.
He has -- he starts at a million dollars a year 30% for them if you make more than ten million he says you need to pay at least 35%.
A good idea and abstract and -- to -- read that op Ed many starts talking about his brother ran.
On the Forbes 400 nonwhite you're those are what multi billionaires due -- they're not people who own businesses and make a million dollars a year.
Well I think we're starting to get into some of the issues here.
You know productive income if you will vs unproductive income and investment income verses -- earning coming fuel -- unearned income.
-- I think these are all legitimate questions.
But my point is that this is a perfect opportunity now -- got this great opportunity to do tax reform.
Meaningful tax reform to clean up the tax code to get rid of some of the provisions I mean for example should we give tax -- For second homes for vacation homes probably not does that make sense probably not.
And I'm I'm I'm an anger a lot of real estate agents by saying that but the reality is there's a lot of things like that that make no sense.
Let's use this opportunity get rid of let's not get hung up about is -- 25.
-- 250000 is -- 500000 is that million what's the threshold I think that's fine.
But if that's -- -- distract us in terms of defining who's rich and who's not I think this is a big mistake.
Right I mean that it's already a big bowl Brunswick stated its unappetizing and it looks like based on the -- a lot of these politicians are talking about is in the -- gonna become even.
More in at a ball and airman do you think that they can get tax reform done may be within the next year.
I think it's entirely possible my worry is that.
When what comes out of this giant sausage machine -- called Washington.
When it comes out it's going to be even more complicated.
That's the real risk care and I think the emphasis should be on simplifying the tax -- keeping those marginal tax rates low and now let's do things right let's not create.
And worsen the distortions that already exists.
In the tax code.
An -- great to see you thank you so much their rent their -- take care with season.
There it is right -- the idea closing.
The -- -- Norquist we consider that a tax hike so.
You know didn't like Germans say it you know that he's losing his influence Lindsey Graham people fly again Jamie you made the point.
Loud and clear lot of people backing off backing off a back up -- what you have not reported first.
