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Former Reagan economic advisor Art Laffer breaks down whether the economy is headed into another recession.
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Let's get back to the economy.
Both President Obama and Harry Reid want to tax the rich mall -- revenue they say that means higher taxes.
The president goes so far -- -- -- his policies will cause the economy to grow.
In 2013.
This year.
Joining us now from national former Reagan economic advisor ought laugh what do you say -- if we do raise taxes -- This year -- are we gonna grow this economy strongly.
-- that won't do it but no but we can do something like Alice Rivlin proposal or Bowles proposal if we broadened the tax base dramatically.
And and lower rates that we could really get this economy growing but I don't think that's what he's talking about it would need to talk about broadening the base I just I can't see that odd I cannot see this I don't see -- -- -- -- lowering rates.
He won't tell -- more I don't only the rich.
By closing loopholes the net effect is the same you take money away from a certain group of pizza and he started around a Wallace I mean that's the net effective -- it.
-- I don't think we need more taxes Stewart I mean you can't tax the economy and the prosperity but I mean he just can't.
And by the way the the point Harry Reid -- which is.
Correct in far the -- goes as you know they were elected in the senate and Obama was reelected that's all true -- -- -- the house members.
I mean the house members were elected on their policies as well 235.
Republicans they were not elected to increase spending in the push higher tax rates in.
And they control the house -- and using this political argument is false I think.
Can look at the other side of the coin for a second -- will be cutting spending -- to sequester goes into place than we've gone up a significant cut in spending as of march the furniture do.
What happens to the economy then.
Well you know we do need to cut spending and we need to cut spending a lot.
I am not sure that this type of sequester is the right way to do it.
But if the thing that they passed in 2011 if that's the only way you can get it done.
Was so be it but I would much prefer to see a compromised on the house in the senate the president.
To avoid going into sequester.
I'd much rather see that in.
What I'm expecting as well Stewart -- in 2014.
They'll be further judgment done by the electorate and I think the house Republicans will win big time.
And I think the Republicans could well take the senate and that it becomes a moot issue is -- As -- which side wins you'll have to cut spending OK let's suppose that we raise taxes a little bit mall this year.
And we cut spending on marks the first what kind of growth rate you think will get for the economy the president says it's going to be straw what are you -- I don't think the president's correct on that I mean strong growth would be 78%.
Growth rates and quarters and and we're not gonna get anything like that this is not Ronald Reagan believe me when I tell you that.
This is not Jack Kennedy who even -- did Ronald Reagan.
I mean Bill Clinton did a great job as well this -- -- even Bill Clinton.
But we will not get the type of growth rates the president is promising.
Because of the policies they put into place are anti growth that simple as that all we headed for recession.
I don't know when we we've had one quarter down already that was fourth quarter 2012 and it -- -- need is one more quarter down.
And that would be the official definition of recession so.
You know -- close.
I think it's looks pretty rocky.
To be honest with -- for the next the next year I don't agreed with the presidents spirit -- although I'd love him to be right I really hope he's right we get very good growth.
But I think that this next year's going to be a tough year all right on -- -- fraud joining us from the retirement capital of America which is 100 my goodness if that's true that's his idea.
And now we're all -- hardworking people would get to happen to be nice and pleasant and love one another vehicle cooperate that's all Stuart that's all we have got a long -- -- -- -- -- -- -- -- -- --
