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Patriotic millionaire Eric Schoenberg discusses why he is happy about the increased taxes on America’s top earners.
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-- next guest he's a happy man.
Happening happy as a plan to pay more in taxes in fact it is exactly want he want it.
After the fiscal deal was passed his group that called the patriotic million as they said quote.
We did it.
It'd take a victory lap is one -- those patriotic knowing that you've seen him before his name is Eric showed book Eric welcome back thank you -- you smiling about.
Well I.
You know take a victory lap I mean it obviously is just a first step I mean we -- we -- won't well we continue to have significant fiscal problem the second the president said.
We're gonna we're gonna have a balanced approach in the future.
To spending cuts -- -- the woods but we may cut some spending but we'll get a tax some -- you happy about that.
Well look -- even the Republicans have been in favorite -- -- want to give our taxes -- happened needs significant change yes but -- you happy about it even mall on top of the increase that the fiscal -- -- just -- time perfectly willing to pay more above and beyond what is already been agreed to that you would do that I would -- you're an academic challenges science professor at Columbia -- -- -- to correct adjunct professor correct why is -- that all you professes -- academics of this world -- on use of liberal.
Well I think part of it has to do with the fact that it's definitional.
What's liberal conservative.
Given that often people think that you know attitudes towards taxation -- an important component -- of of the yet political spectrum.
Part of the reason is that academics do not -- rate themselves based on how much money they -- -- there and they.
-- of god are you kidding me.
But not gonna have outpaced inflation more than how much you professors -- college you wanna talk about electric hair I'm telling me.
I was a student a trillion dollars in student loans the biggest burden in this country that's what they're going to implode the paper investors whose salaries outpace inflation -- secretary could be made from here to the quarter and I don't care about money you'll want to -- of balance you can.
-- and I -- get -- to defend the the university industrial complex I agree university educations are far too expensive.
But there yet but this salary of the -- of the of the faculty is only a small.
A portion of where they don't pay whatever they -- to -- at some point through.
Isn't a fatally nine need to think that you can let that the US -- -- government spending go so attic until you text 100% of the -- -- on -- this country.
You only raise 600 billion dollars a fraction.
Of the sixteen trillion in the US deficit still there is no lock box box of Washington DC put your tax revenues going.
Into the system.
And look I am not disagreeing I am in favor of reducing government spending I think that is an important component of what needs to be done.
In order to get our fiscal oh yeah quarter one President Obama reduce spending he got -- -- he's trying what do you think tried to negotiate a grand bargain with congress but he found the requisite that -- the House of Representatives was completely unwilling to consider anything's involved 120 billion dollars in tax increases fifteen billion dollars in spending cuts that -- deal that because there was no immediate issue again I find it baffling that Republicans suggest voted against the bill.
That would just cut taxes substantially.
Relative to current law they -- voting for allowing the bush tax cuts with Republicans -- That only lasted for ten years they were voting to allow them collapse and in his remarkable thing for Republicans -- -- congress that so.
-- the top rate on income tax is now 39 point 6% correct.
That he's just gone up from 35 depending on point six you happy about that I don't know what about the fact that right I am and you -- -- quite a bad to pay even mall yes how much more.
Well what I think should happen next is I think there should be a grand bargain and include both financial spending cuts as well as reform of the semi have I don't know how much more palatable but -- what -- object to it's not it's not just a question of marginal rates you talk about eight points you talk about pork and I agree I dinner -- -- I am wildly at the capacity I'm insisting on a response it's voted nine point six now.
What would you be happy it going to this they're under any circumstances thirty -- Nine point 6% of the what the -- -- can -- is I don't agree with Republicans but let's I -- -- -- -- the let's apply these rates to more of the -- in the middle class receipt for the middle class well.
Let's talk about what specific to the -- where -- deductions are taken the middle class censor what when you say the middle class in the front of the outlook broaden it -- although one way to Broadway and basically my last look well I I get deductions like everybody else on an income you know million dollars a year I get to do indeed deduct charitable nations I didn't get -- -- of -- statement of what happens.
You know the Asia I don't think I should now I think we should.
Absolutely get rid of all of these things let's go back to this point I just made everybody complaining about the pork in this bill there is a lot of pork in this bill but the -- is in the form of reductions benefits for individual companies for racetrack owners.
For our for some kids I want to get back to marginal income tax rates can't forget about deductions and -- -- about spending cuts.
Where would you be happy how would how will with the -- -- rate go up to and you would still be happening 45%.
Well first of all France 75%.
Would you go to 75% -- -- -- know -- let's be clear I think 39 point 6% is not a bad rate -- Marjorie Dunn earned income.
What about unearned income and -- what about what about number enough capital to and you give me a number yes on can you do it.
I am telling you that you can get substantially increased income without changing that on margin -- -- number professor and I'm not getting it are you gonna give it to -- -- what it -- this nova net.
I'm not.
I don't even understand what the question -- Albert is something -- -- took.
In France the top marginal rate has gone to 75%.
When you -- now I don't think that the next -- -- 50%.
I think 50% is a perfectly reasonable number for highs and that's the talk Montreal and they affect so then you've got 50% from the Fed's half your money goes to the federal federal treasuries right.
Then if you live in New York City you've got another -- 1112%.
If you -- in California it's 13%.
So.
About point you live in a wealthy area 63 cents on the -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Paying anywhere near those rates because -- it ain't got you miss investment what our own investments them accelerate -- 20% what you think that's you walk out the point 18% is -- wire one channel.
And needs to know you would joy -- paying more more in taxes is that on I am a strong Eva.
I came here with nothing and I've made it all myself.
You inherited you'll wealth did you note I inherited some well thank you need someone in my own -- and it's a huge difference professor at.
I think -- -- -- different I think one of the good things about this bill also is that.
Recognizing there is a big difference between somebody's making 250000.
Dollars a year in some and he makes a million dollars year to I think it's entirely appropriate that we have higher rates.
On on -- much higher levels of income.
Let's have a went right about fifty the last time how about on income over five million dollars a year you think these people are striving and suffering because they're not able to take more of that five million -- this is America not Europe and did you bring -- within.
If you're not going to check -- think -- 50% is legit one you take out your checkbook write that check right now because Al government clearly needs it will you do it.
Hi -- did not believe taxation is a voluntary process.
The whole point's right right gonna -- in January -- show about a professor at Columbia University up pleasure us thank you up.
