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A Fox Business -- Fitch credit rating agency warning today that the US risk and credit downgrade if a deal to raise debt ceiling is not reach.
By the August deadline -- meantime.
Vice president Biden's debt talks set to reconvene for the six time that's tomorrow.
Also tax hikes reportedly are on the table by both Democrats Republicans but is raising taxes the best way to tackle the ballooning deficit my next guest says absolutely yes he wants the government to it.
Tax him more.
Oxford aren't patriotic millionaires -- -- Garrett joining me now in the has -- exchange well.
Ron I gotta say I want the government tax reform already paid 50% I don't I don't want more than that why do you want.
I don't want the -- the government to tax me more either.
I don't like paying taxes anymore than the next person but we've -- ourselves into a very deep financial hole.
And we have three choices we can raise taxes we can cut spending or we can go bankrupt.
I don't want to go bankrupt and cutting spending just does enough to solve this problem I just don't think is politically realistic well I.
I'm gonna take issue here is second about the incentive idea of raising tax rates how that might hurt incentives but.
What makes you think that if the government does succeed in collecting more and revenue it'll use it to pay off the debt.
By definition haxor revenues will will reduce the -- we'll know by definition politicians get money -- they spend it.
And that's that that's the political definition of a politician.
So -- we have to we have to do both we have to increase revenues and we also have to decrease spending at the close this gap on both sides I think that's the only way we're gonna be able to get it done.
But again I I -- -- -- more than this final time but what makes you think that there's any guarantee me we see how.
The Social Security lockbox so called is not a lock box at all that the politicians reach in and steal from that all the time.
Why did you think the same would happen within a debt lockbox.
-- that -- there are no guarantees the only guarantee is that if we don't do something we will go bankrupt if we go bankrupt.
That will be very very about it on the 2008 o'clock cakewalk all right let me talk about the incentive thing because a lot of small businesses are tied in -- -- half -- I'd rate hike on income taxes if -- If he attacks if you had to raise income tax rates more small businesses a lot of them will be heard.
Don't you think that would and it really hurt the job market right now at a time where it.
When it's already.
So I've heard this argument a lot and if you go back and look at history just doesn't stand up to scrutiny.
The last time that the top marginal rates were as low as they are -- was 1929.
If you look at the period from 1945 to 1975.
Which I think most people would agree was when the country was it's.
Marginal rates were between seventy and 90% unemployment was 3% so this argument to that.
Having high marginal tax rates is a job killer just doesn't -- -- -- -- forget you can say the opposite mr.
-- you stats to prove anything but when when Reagan lowered tax rates dramatically.
We had seven years of buffalo growth that this country.
At that it.
It did the effects of tax policy you don't make themselves.
Apparent quickly these things play out over long periods of time.
And any time.
It's not you make extra money available it gives the economy.
A a short term boost.
This situation has been in the making now.
For thirty years and it's going to take long time.
And a fair amount of pain to pull ourselves that I agree with -- -- -- -- and the longer we wait the more painful it's going to -- we have to leave it at that Ryan -- I enjoyed the discussion thank you for coming in appreciate -- -- --
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