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Steve Forbes on the Benefits of a Flat Tax

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    Forbes Media Chairman Steve Forbes on the need to reform the U.S. tax code.

  • Duration 4:14
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-- it continues with our complicated tax code about the get even more complicated by new taxes and rising rates it may seem like a strange time to be talking about a simple flat tax.

Longtime advocates of a flat tax met today with a Republican lawmakers.

To try to plant the seeds for a time when a flat tax.

Might be taken on one of those at the meeting was mr.

flat tax -- -- Steve Forbes.

Forbes media chairman and editor in chief who's been singing a song for a long time but it doesn't seem like it is.

Has ever been less popular than it is today it seems like your voice in the wilderness state.

-- I think -- the American people who was put before the American people that glom on to dispense these taxis is gonna start after the holidays David.

And this whole thing about that tax debate about the fiscal cliff it's all about how much poison how much tax -- more we gonna put in the economy.

I -- we're recommending that the Republicans including represented in the -- senators -- with us today.

-- let's go for positive growth strategy simplify the tax code reduce the -- get this economy moving -- we're going in exactly the opposite direction as you well know the president came out with his -- at the end of last week we're just beginning to digested now.

Edited includes twice the number of tax increases that we thought it was what was your feeling when you saw that.

-- bombing under the French the treasuries and their top tax rate to 75%.

He probably got jealous over that.

But there that we never had a period like this statement since the early 1930s -- so many countries are raising taxes in the private sector in the face of a decline so what's gonna happen Steve I mean will.

Will we have time enough to see the effects of this I mean that is -- -- Willett actually the -- -- -- the Republican should be doing two things one is.

Go for the dream a flat tax -- -- in the mean time for gonna do something serious on the tax code -- entitlements not gonna do before Christmas well you know what the Republicans out what the Republicans could do is they could they could put up some words from the president's own September 2011 report.

In which he says and I'm quoting from the president right now.

Principles for tax reform lower tax -- the tax system.

Should be simplified and work for all Americans with the lower individual and corporate tax rates.

And fewer brackets how did he come so far from -- a flatter tax which you dedicated your go to what he has now.

Maybe he peaked early maybe he was drink in the right -- waited so the wrong Kool -- But you know we have to remember though during the campaign in 2008 when Charlie Gibson children that of reducing capital gains taxes immediately has an increase in revenue.

He sort of dismissed and said it's not fair.

We gotta do my way what if in fact that happens and it it it is what happened in the covers happen by the way when President Clinton lowered the capital gains tax rate from 28 down -- 20% we had a double link.

Of income big government did from capital gains so if it works on both sides.

What if investment capital begins to dry up as a result of taxing it more when you tax something more -- -- to get less of it.

Where will it and go where what all that investment income -- It's can stand the sidelines or disappear you know financial markets and we know can go down as -- us up.

And and that's what we're experiencing now at capitalists on strike capitals not being created we -- -- in Western Europe -- -- -- in Japan.

Why in the world we find the same poison here why do we have this austerity can't -- -- -- people are just debating.

How much more burden we gonna put an already weak economy and finally Steve -- -- Republicans cave on the issue of tax rate increases will they agree.

With the president and his folks too to raise tax rates the rank and file that I talked to wanna hold fast on that.

And say no we're not gonna do it you wanna push the economy off the cliff you're the chief executive you're supposed to be bringing people together.

And have put -- throw the ball back in his court.

So you think no deal.

Boehner might be one of the speaker Boehner might do want to do a deal.

The rank and file wants to hold fast and stick to principle which is rare and washing what's your feeling do you think we're gonna go off the cliff.

I think it's gonna go right to the end and if the Boehner and McConnell senator McConnell -- not cave.

I think we're gonna get kicked the can down the road and for once that's going to be a good thing rather than a bad thing Steve Forbes Forbes media chairman and editor in chief Steve good to see you can receive and I thank you -- --

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