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OK so putting sequester -- looming budget battles aside for now one thing everyone is talking about -- taxes that are too high.
Too many -- to overhaul the whole system in fact.
95% of economists.
And the national association of business economics say that congress must.
Act to reform the tax code.
So who better.
For money to recruit the one of the foremost experts on tax policy grab a pen sit down for this one because we're gonna give the government had -- -- -- -- -- -- President of Americans for tax or so reform you know -- it's sort of seems like it has reached critical mass that we need to.
Reforming the tax cut do you think that's just lip service.
Or do you think that now for the first time we could really see this happen -- -- closing tax code reforming simplification what do you think.
But two questions one we need to do -- our economy's growing more slowly.
That it show ID it's killing jobs the structure of the tax code both corporate and individual income tax that we have now.
The challenge we have is that.
Dave Camp the Republican.
Chairman of the Ways and Means Committee in the house whose job it is to reform things.
He's designing a tax reform plan right now as we.
Orrin hatch in the senate senate finance raised during the same thing.
The president goes to bed every night with get sugar plums dancing and -- had about raising taxes not reforming them so there's.
There's a conflict.
Vision here as to what direction they want a -- I.
Solution I mean let's do for that we we don't we've been working on this today let's break it down for them to go through some of your suggested that made a lot of -- -- civil -- to tax code.
-- some of -- loopholes -- number one.
You say that diaries and -- accountants should have no cap accounts partly accounts should have no cap.
-- -- should be able to save tax free why does that make sense.
You want to reduce the cost of capital you wanna get more investment you want Americans to be able to save more.
This -- an idea that I was put forward during the bush years and I've got caught up and stop to basically allow people have a personal savings account.
To put is much money into as they want as long as it's building up its not taxed it's only taxed when you take it out.
And spend it it would simplify their many different tax advantaged.
Programs let's put him into one and simply say if you're saving it you're not gonna be taxed on it even when you take -- -- when you realized gains.
I would be willing to say look you should only tax income one time either before you put it and you know that -- dot.
IRAs -- and and the other -- attacks it before you put it an and that never get taxed again.
Or -- put it in tax before you pay taxes.
But you don't pay taxes on the bill thank you would only pay taxes at the end as you took it out as if you just turn to them.
You say hello business investment should be expensed immediately rather than depreciated over many years.
Right luck we could simplify the tax -- by more than a thousand pages.
By getting rather of those complicated this equipment should be depreciated over three years or five years -- -- that are fifteen.
We if you spend money on a new piece of equipment you should expensive because you don't how.
-- that it isn't profit it isn't taxable income if you don't have the money.
So when you spend on new investment -- -- -- expensed in the same way if you hire a person the wager salaries expense same thing with investment.
It would drop the cost to capital significantly.
Your next -- -- wanna cut the choir at the top tax rate for individuals and companies to 25%.
That that's the European average for the corporate tax rate is 25%.
It will lower the rate you close loopholes do you think you really generate.
More income for -- and I mean I know that's not your goal to generate more income but that's always the promise.
Yes that's always the reason why people are willing to get on board because they say they lower the rating closed loopholes the government will end up with more running and -- you don't care but easing may well.
But I think that well it is long as its revenue neutral in and and the fact -- take rates down as a Reagan did Reagan took the top rate down to 50%.
We got more money for the government because of economic growth.
He then took -- down to 28%.
We got more revenue because of growth when bush raised marginal tax rates bush 41.
We had a recession.
It didn't help.
So we need to take those rates down.
And of course we should eliminate a lot of deductions and -- to simplify the code not to get more money for the government but to have a simpler.
You're glad you real quickly -- -- and the death tax and you think the US should move -- territorial tax system and -- the current worldwide tax system.
That keeps American companies earnings -- oversee revenue bringing them home does make sense since our our sort of self explanatory.
Do you think that I mean -- you know we've seen -- Republicans reluctantly be forced to give in on taxes going up and maybe we're seeing some spending cutting here.
Do you think that may be compromise is is good for all at this point.
Good policy is good for people.
Compromising if that means moving in the wrong direction hurts the economy.
The president have the power because tax cuts were lapsing in January 1.
Two months ago taxes went up that was not a compromise -- just.
He have the power to do it and he'd let it happen.
That will not be good for the economy we could've had a stronger economy without those tax increases what's good for the economy.
Is -- the tax cuts that are there are now permanent okay.
-- -- you so much for coming -- we appreciate your time.
Thank -- --