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Sen. Paul: If We Raise Taxes, Could Send Economy in Tailspin

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    Sen. Rand Paul, (R-Ky.), on negotiations to avoid the fiscal cliff.

  • Duration 7:04
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This transcript is automatically generated

So -- goes.

My first guest says it doesn't matter who you tax or what -- revenue.

Takes taking more money out of the private sector will hurt.

Economic growth joining us now.

Republican senator from the great state of Kentucky senator Rand Paul good to have you with -- senator.

Good evening -- you know the presence as we don't have enough time for tax reform or entitlement reform you know but my response is.

Do not.

We've been talking about this for two years why haven't we done anything I met with the president a year and a half ago and I looked across the table I -- and I said.

We need to do something about Social Security we need to do something to save Medicare.

And they have done zero.

How come there's no come media here I get to Washington -- Who's in charge of Social Security reform nobody's in charge everybody waits for a deadline and throws up -- and it says.

We don't have enough time it's broken up here but because they're not doing their job.

Well.

And not doing their job and and whose job visit amongst the Republicans to start making some sense of the thing.

I said -- you may have heard at the outset of this broadcast clearly unequivocally without reserve.

This will be the president's decision at the nation is to be taken over the so called fiscal clip on January 1.

There is no reputation of that there is no rebuttal that is his decision his conditions.

And the Republicans are behaving as if they're equal partners and the bad news that would.

Be the result of this decision why did they persist in your party to -- so.

I think when that we're in the middle of all these negotiations people get consumed by a -- art of the deal.

But nobody really is trying to remember what we stand for.

If we don't stand for something if we are not the party of limited government of lower taxes.

Then what are we doing up here my point is I'm not jumping up and down even to do revenue neutral tax reform.

I want taxes to be -- word because that's the only way you stimulate the economy is to leave more money in the economy.

And I don't think it matters if they wanna raise taxes -- raising rates or by getting ready deductions they're both bad ideas.

And we as Republicans have never thought to -- ideas let's don't talk about.

How much will raise taxes let's talk about how bad an idea -- when the president insists on raising taxes in the economy goes into the tank.

He can get.

All of the credit he -- for for sending us in the wrong direction.

Well.

In the political consequence of this the economic -- consequence of this in the by this I mean.

Going over the fiscal accounts.

The fiscal -- Will be the significant.

Above what I don't understand is the he is the apparent effort.

-- either self delusion are there are under misrepresentation.

Of the facts.

You all as Republicans -- House of Representatives but as we saw during the debt ceiling discussions of 2011.

It is not a pretty perch from which to take on the boy pulpit of the president's.

You have but I think what we need to do is not get caught in the trap the compromises raising taxes.

I think there are many other compromises you could have for example.

I think one compromises we could save some money on military spending even -- I think that's the most important and we nearly five million defense 55 billion here.

-- absolutely I think we can -- I think we could also say that you know what.

The rich could pay more for their Medicare or the rich could receive less for their Social Security means that compromise.

-- those are compromises I presented directly to the president a year and a half ago.

And he's done zero his party's done zero they're just hell bent on what's goes so the risks that are on hand with all respect.

And you had this discussion with your party what are they saying that those are rational and effective ideas.

There are some and our party who will accept that is there -- -- our party -- get caught up too much in that we've got to make a deal now the president.

The C I think this can be consistent.

With something the president the Democrats -- they think rich people need to pay more their fair share.

Would I would say is let's let them receive less benefits because we don't have enough benefits to go around anyway and let's come to a compromise there.

Or let's look at military spending and come to a compromise there.

But the media has so dictated that the only compromise is whether to raise taxes a lot.

A little or right in the middle somewhere but it has to be raising taxes is the only compromise.

I don't accept that.

And -- raise taxes we could send the economy into a tailspin.

-- -- You know in other the choices as I said in terms of consequences for the political or economic are going to be severe.

I wanna credit Mike -- a bright mart dot com today I don't know if you read his piece entitled.

The GOP the party of slightly fewer tax hikes.

That this has to be a carefully managed.

-- if you will.

Piece of political choreography.

Because of Republican Party right now the party of free enterprise individual freedom self reliance.

And lower taxes and smaller government is on the verge -- giving up.

Its claims on more taxes smaller government and perhaps.

Perhaps the greater dependency.

Less individual freedom and self reliance.

It gives not much for the party complained to.

Political will.

Well here's the thing -- the facts are actually on our side when bush cut the tax rates in 2003.

You know what happened -- got -- more revenues and at a really detailed sort of advantage of that revenue.

You don't give the full answer to this do.

We saw the slowest job creation.

It was only matched by the recession.

Of 2008 and nine.

-- there are this is such a complicated.

Economy as you know I think as -- if not better than most of the folks who were responsible for managing.

Of the regulation of this economy and Washington.

But the fact of the matter is these are not such simple and obvious choices that have to be me.

And and and senator -- have been talking and I think.

Honestly and forthrightly about some of these decisions.

But we know that simply cutting taxes doesn't work we know that simply in spending more federal money doesn't work.

And these are the two primary.

Principal tenets of the left and the right the Republicans and the Democrats -- both -- demonstrated.

That it's just not that simple in my opinion you get the last word here.

-- we're just say -- that we have to be competitive worldwide you know we're losing jobs and one of the reasons we lose jobs is.

We have an income tax of 35% on our corporations Canada's 15%.

Europe's in the low twenties so money goes where it's welcome.

And money and jobs are flowing the other countries we will have to change our tax code and make it more hospitable to business.

Senator Rand Paul's always good to talk -- thank you for being accident but.

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