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Time for a Value-Added Tax?

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    Former Treasury Secretary Paul O’Neill on efforts to reform the tax system.

  • Duration 4:57
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Not tax the upper level.

But it should come from a progressive.

Value added tax we have us -- the personal income tax.

And the corporate income tax and the payroll taxes.

And we gotta use a powerful.

He efficient.

Raiser of revenues to raise -- money we need.

To favour of the -- we want me you don't think of that would hurt consumption and that hurt businesses and doing so.

And we need to raise we have -- first we have -- back of principle one are we dinner.

Raise the money we need are we gonna do in the most efficient way the most efficient way that bullet proof that really hard to avoid and evade the value -- -- now.

Here of what about whether -- thought hold on -- us like a ball because that is precisely the reason why Milton Friedman among others didn't like it.

They said it is an impossible tax to get away from and that makes it so much easier for politicians to continue to jacket -- -- You look at what's happening in Europe in France in Italy.

In all of the countries that are suffering the most right now in terms of growth.

They just jacked up their value added tax 125%.

OK so here here's the principal.

I think we we need to draw in the sun and that's -- -- We should not happen add on value added taxes we should have a replacement.

Value and I don't have put it -- tell -- what we -- they've got.

Value an effective but they get every other kind of a magical imaginable tax.

And and the national sport in Italy if not paying taxes right well let me let me just did the president has weighed in on what he wants to do in order to change the tax code.

He did it about a year ago let's play that sound and get your reaction to it.

I was there I will work with the Republicans.

Ought to plan.

For.

Economic growth job creation and reducing our deficits.

And it passes compromise between Democrats and Republicans -- understand this you know people have a lot of different views I'm gonna compromise -- That's not the what I was referring to what he said what he said a year ago is this.

Give us one point two trillion in additional revenues which could be accomplished without.

Hiking tax rates but could simply be accomplished.

By eliminating loopholes that's what Republicans are saying now the president said a year ago exactly what Republicans arrest -- for right now.

Why don't they come to an agreement OK so good I think -- I love that a lot.

So you just brushed aside my 400 billion dollars worth of tax gap and 436.

-- billion dollars worth of none of inefficiency and administering the tax system and you know it's not okay.

Going forward to have a system that's less than what we know.

We do the job in a massively better way and raise the revenue we need and then I wanna go to the other side your question.

We need to do the same kind of real mansion mean.

What we're doing in spending our money.

Well I was gonna sit spending cuts what can you be really specific what would be give us the biggest bank for our buck one thing.

Raising the Social Security -- raising Medicare's recipient age.

Means testing Social Security.

Don't you know it's hard -- -- work inside the lines here around like a kid with McCray I'm you know and I don't wanna work inside the lines that somebody else wrote so.

Here's the fact for you we're spending two point seven trillion dollars a year in health medical care a trillion dollars of it -- waste.

So here's the question.

Would you rather rear -- the financial responsibility.

For the two point seven trillion -- save -- trillion dollars.

I'd rather save a trillion dollars and we can't get the president to go on TV and say deaths.

Every health -- institution the country.

A week from Monday is going to be required to hook up the Internet at 8 o'clock in the morning and posed for everybody to see.

There's newly acquired.

Hospital acquired infections there were identified the previous 24 hours patient falls.

That occurred in the previous 24 hours medication errors 300 million of them a year cop -- Right it'll be out there and we can galvanized to -- medical care system into eliminating.

This unbelievable ways that.

Not only is -- but it kills people right so -- -- ever put our society and a better footing.

We need to pay attention to how we improve productivity.

Not just rearrange the chairs so the Ryan plan was about rearranging the financial responsibility.

Friend who pays the two point seven trillion.

Allergens that the right way to think about you know symbols well you know -- plant we're gonna put it up on our face the rich based -- -- caught after the that's slash after the bell the -- place thank you so much pleasure you're thinking outside the beltway thank you that's good that's a help plug a significant.

Former Treasury Secretary Paula -- thank you honored to have what one come.

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