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Steve Forbes, Forbes Media chairman and editor-in-chief, on why he believes the Republicans mishandled the fiscal cliff, and his predictions on when t...
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No deal will we fall into a recession.
-- 64000 dollar question -- least.
We're joined now by Steve Forbes Forbes media chairman and editor in chief with his thoughts on which is more likely sir it is wonderful to see you open to see Laurie thank you this week he wrote raising taxes is equivalent to harming the patients start there.
That's right raising taxes especially and a wobbly economy is just gonna make things worse Europe is doing its -- -- keeps raising taxes their economy contracts even more.
Germany and France about the gone recession they've been raising taxes Japan raising taxes now officially in a recession why in the world would would we apply that poison to ourselves.
Well that's the ultimatum from the White House as -- -- -- because of the president's reelection.
Pay half the -- -- right so I mean are the Republicans can have any choice but to -- especially on -- issue of raising taxes for the higher income Americans.
Well those higher income Americans also small business owners -- 63%.
And debt people -- -- capital people who invest capital and again we've seen in Europe and France especially that kind of thing does not work.
He may have won reelection but he did not have a mandate to hurt the economy.
And that's the way the Republicans should phrase this thing.
Why harm the economy now if justice gratuitous so what's the Patterson -- than just letting the economy fall off the cliff.
Or what the -- raising taxes on the wealthy and what what the Republican should do been making the point that raising taxes a bad thing to do.
-- say let's postpone this thing kicked the can down the road for six months better to do that and apply poison to the patient now.
And see what happens in Europe see what happens her own economy our economy starting to slow again.
So give people pause and you do things and a rush you end up doing things you don't anticipate.
Our viewers know that you ran twice for president a Republican of course -- -- -- major name many ways but of course with your proposal for a flat tax fair tax and just this week you were on Capitol Hill with.
Representative -- -- -- Texas and several other Republicans.
How -- fair tax proposal.
In this environment being received this time around.
I think people now we have to simplify the tax code of the president wants to -- rise to real greatness.
We should do is take this emerging consensus among Democrats took a lot of Democrats are signing on to the idea.
The taking jumped out of the code -- deductions reducing rates across the board.
I think with the gonna find -- once they start doing it just can't touch one deduction not touch the others.
You -- have to -- sweeping -- so we can get sweeping tax reform next few people know we have now is a drag on the economy -- free people shouldn't put up with it but -- -- think Washington.
As a whole seems to rebuff the idea of a flatter fair tax.
Because it's a source of power being able amend the code.
Being able to change the code everyone has to come to you for relief for trying to give it -- their -- of opponents and their competitors and things like that.
So what they're not gonna change in the wrong Ronald Reagan was right he said you don't change minds on Capitol Hill this week reason -- due to the heat of public opinion.
The only way we're gonna get it done -- -- not optimistic on the health of the economy coming into -- -- whether or not respond to -- -- state this lackluster pace that is right for me how you see that environment impacting American business.
Well what it means is is that we're not gonna have even the kind of sort of semi vibrancy we had this year.
And fourth quarters going to be slower we're going to be slower next year because we have these enormous new regulations coming on health care and financial industry's gonna be looking over shorts on with all gonna be -- Compliance instead of investing in.
Taking risks for the future.
So now -- electric car on the superhighway -- thirty miles not only should be on seventy we're gonna go down about ten or fifteen not good.
I was wondering what's your take on this idea that American business investors are gonna go overseas and ultimately.
Rehabilitate those struggling economies are -- reports earlier in the conversation to the detriment of us here in the US.
Well you've seen some of that already because of our crazy taxes especially in corporate profits.
But that unfortunately other countries are committing the same since we are so handful of countries that get a right now like Singapore.
They -- they don't get that investment.
And in the Europe there's some countries -- getting it right like Sweden Poland.
Bulgaria -- The Baltic States but -- the major players they're doing the same poisonous things that we're trying to do here.
Thank you so much thank you -- for coming in into the conversation very much value right.
