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So with a market rallying again he -- the question of the day.
Could America's economic policy change if the Republicans win big in November but to answer the question here is one of America's most original thinkers.
Former senior advisor to President Bush and Fox News contributor Karl Rove called welcome to program good to have you with -- -- They Stuart thanks for have built a -- If the Republicans take the house for example and diminish the Democrat majority in the senate.
Is that enough to change America's economic policy going forward.
It will change some but the real question is -- -- President Obama react to it does he do what Bill Clinton did in the aftermath of 1994.
Congressional losses for the Democrats and that is moved the senator.
Or does he stickers strongly on the left flank of his party.
And you -- just engage in a strong fight for the next two years attempted blame the Republicans for the failure of if his policies and I think it's probably the latter but but that's still probably good for markets gridlock is good.
Gridlock is good but what about the tax issue on -- the -- if nothing happens then everybody's taxes go up.
All the middle class tax cuts stay in place.
All we will raise taxes just for the rich now there's one of those three things -- to happen cult you know politics better than anybody what's gonna happen.
Well I think the president is gonna try to be in a place where he keeps a tax cuts for the 95%.
Taxpayers -- Which is the vast amount of the of the vast bulk of the bush tax cuts.
Ironically enough though the tax cuts at the top that he's willing to you have go away and and and replace with what would be the largest tax increase in American history.
Those are the ones are probably more important to his reelection because those are the taxes that are paid by the entrepreneurs would risk takers.
You know 54%.
Of small businesses that are subchapter S will end -- paid higher taxes if the top bracket is allowed to go up and all the rest of the brackets are allowed to go down 33%.
Of sole proprietor ships.
Will pay higher taxes if the top rate is allowed to go up.
And that's those are those of the job creators if he hopes to get robust economic growth by 2000 -- 2012.
Then that one of the elements that it's got to be that those job creators are out there -- create jobs and they're not likely to be if your taxes are going up it -- Stewart I wanna say I thought I caught you on fox and fox earlier this morning.
You made an excellent point which is -- -- overlooked in all this this is also a moral debate -- the American people instinctively believe there ought to be a limit to how much the government can take.
At a top rate is now 35% it's gonna go to thirty died.
Purely forty UN in the new changes on Medicare and state taxes and high tax states like New Jersey in New York -- -- talking about -- top rate of -- in excess of 50%.
Yeah I mean look you you might feel good it might be good politics to tax the rich tax and tax and tax and but there is a moral component this is America and I don't really think that Americans approve.
Of at any government taking 50%.
More than half of your income.
But I got -- we were real you know we agree on this one it remains to be seen how a -- what this one out but I do want to move on to some the new indicators.
I believe you off following some new indicators of the performance of the economy.
I think -- -- forget GDP a little bit of that in the background a look at some of the new indicators from the new media can you explain that one call.
Well -- The -- -- -- build indicators have been unemployment rate in GDP and those are still important but there are loosely -- went back and looked at.
At the rate -- of unemployment in the GDP growth.
It related to election losses in the mid terms and there's no real relationship between them I think what is happened the last forty or thirty years is.
What's become important are the things that people see in the workplace think about you if you used to work -- wars.
Thirty or forty years ago you -- know how well the business was doing until the annual report came you work at a Wal-Mart or target or.
Almost any modern American enterprise today and there's a computer the backer of the charts your progress your sport progress against goals every fifteen minutes.
I mean we don't know a lot more at the workflow the at the worker level about how -- enterprises doing it and tell the economy is doing.
In those things.
Whether it's -- -- in your esteemed and gauges for example Google searches on new auto on auto dealerships.
Because it's an indicator of whether or not people are out there by and -- a big ticket item car.
Yeah I think these things have become far more important than the old indicators which tend to be lagging it collected by government while.
-- -- the if after the fact have you looked at these new indicators and and what are they saying -- they say that on the ground full ground floor America main street America.
Times -- tough.
It says they're deeply concerned about the future I mean think about this.
You've got small businesses who are keenly aware that -- taxes you're going up.
You've got all these millions of people who work in financial institutions who -- -- -- -- trying to come to grips with the new financial regulation bill you've got all these people who work in the health business whether it's -- for a -- for a hospital or an insurance company or doctor's office for.
All of -- concerted then you have all of people small businesses.
Who's who's the leadership of their companies are starting to talk to they're not -- -- start to talk to would say look.
This health care bill is going to be really bad for our company we want to warn you about the bad things that are covered so all these things I think -- overlay.
That's keeping -- look that the president is upside down on the economy he has.
His to his disapproval is is wanted to and a -- to one -- point 75 to one over his approval of the economy.
That's not a good place for the Democrats to -- -- into the fall election and I think it's because of the overhang of all these of all these laws all of these.
Think he's added onto the books and all the regulations taxes that -- with them.
Colorado -- a pleasure thanks very much for joining us and I am buying company we don't think -- thank you -- thank you.
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