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steam on the line and return with the wall street journal editorial board
members in the economics right over the wall street journal and author with art
laffer
of the end of prosperity in the follow book the return to prosperity interview
s j dot com the websites steven welcome back to the program i dont understand
that you are you are a big fan of newt gingrich's playwright
well i i don't know but they have a bit better but i worked support for him when
he was speaker break like
and i don't know very well i'm not getting type in that hot
in this race between on the new but that
so you know i think you admire about new to know what i think that uh...
you know i've been out of our about it
he's got this tax plan that will give millionaires a six hundred thousand
dollar tax cut
and will raise taxes on working people in the homeless people
uh... hyatt i'm baffled by anyone
banking that this is a good idea and he goes in for that then repairing
city his flat rate of fifteen percent
and uh... dropping corporate take the corporate taxes
dot a twelve and a half percent
and uh... i
where howdy expect to have a government if you don't have the income were at the
lowest level of in coming into the federal government right now
that we have seen since nineteen
since the nineteen thirties disagree depression
well hey look i mean i take it that you have an optional flat taxes something
that we're going to be really popular americans and in the contract system is
not nothing could be worse but what we have right now totally optional with
anybody pays over fifteen percent in contracture
anybody actually everyone would have the option of like if you want to keep your
mortgage doctor terrible deduction you can stay at mailto starbuck
if you want something simple and and uh... and it takes about five minutes
before loud in the pages that they could effort at two fifteen or sixteen percent
see the naked eye listens
their the common-sense thing here though it's only a little bubble up all tell me
if i'm wrong analysts opened the pac system heat so if i'm wrong on this and
and and and clarify billion understand this
my understanding is he's going to keep all the polls and he says they can go
the all the polls is that and added to after your you know you put out a sharp
locker where your cpa review do-it-yourself whatever
you determine
the here a little more than fifteen percent you can say screw that i go with
a postcard i'm only gonna pay fifteen percent it seems to me like anybody who
ends up doing our taxes and looks like they're going to pay more than fifteen
percent is going to say
america with a flat tax
and all of a sudden you're going to have
to try to truly is a dollars are hundreds of billions dollars less money
flowing into the federal government and we're right now
were spending federal spending is percentage of g_d_p_
is catholic and it is is which is doing just fine thank you very much never had
a bad crashes in had a recession
and is more like togo well you were words were right there with about
no but spending and the percentage eighty p right vocal
thirty five thirty six percent i don't think you know that the pretty percent
candidate is over fifty percent when you combine the provincial and federal
that that that would be percent and worth thirty five thirty six percent up
that's just not true that there have hapless you know we have happened in the
big about welfare was not a lot of three percent and and canadian federal so
uh... federal state and local government spending that nice and federal
spent time g_d_p_ ok but but you have to look at all about levels of government
and work in like six percent there that accompany percent populace is not a goes
out to them i mean you know what the fifty four percent point of view no
let's just go for that
ecuador hit by youth i think you know in their compound smaller government they
want to cut the spending it's not that i think americans want national health and
system and that's what i would buy it
witnessed at election in november two thousand pattern people overwhelmingly
fed you know cut spending get rid of the bailout stop a special interest pavilion
what the status of american citizens who can hope for the live like that that you
have a flat tax i mean you when i talk about this for years
which people take advantage of the group opened the pac system there were about
just get rid of the loopholes get rid of the special just provisional one thing
about the the gingrich plan is that once you move into the it's not a lifetime
ten once you move into the flat-tax you're there bird that you don't keep
get going back and forth but i also think that a lot of america a middle
class people may be paying more than fifteen percent and their catch but you
know what they say you know so intimidated by the system and they they
eat dogwood
drudgery of dealing with that
they would just gladly we'll spend fifteen minutes dictate fifteen percent
of what they are still six set-aside percent arguably twelve or thirteen
of what the people are making in the first hundred and ten thousand first
hundred eight thousand six hundred dollars
is
news program doesn't dress that all this is only income tax value media actually
out of new system which allows people to take
a big portion of the payroll tax to put out a new approval of personal account
so they could actually all not money so it's a it's a bit of a little more
social security
nominees are deleted
not not not not workshops carry it out dot a paying into social security and
medicare and its plant
you did you get to you get to take a portion of your payroll tax which is
fifteen percent right now the big accused of the biggest tax but the
middle class page right and you get the tape put a portion of that into a pup
private personal account and you get the accumulated responsibilities for social
security and medicare
now now it's basically just most elaborate etc system checks reorder
because my pretty young people that i counsel security because they are short
of course there that that the state and that's all you know i thought well
that's not true those substances to solve it for twenty seven years and
penalties seventy percent of the consular ever if you do away with that
they would pay it would be silent for every you know i don't know how the hell
so that they prepare such as the republican party several years my front
twenty three results
irregular tonnage fifty the custom of going to be a dollar soledad stimulus
intercession for twenty seven years
well you're right about that if we can grow this economy i mean you're street
cricketer covered here
we grow this economy to four percent per year you know we can appraisal security
we could pay medicare and growth is the answer is no question about that but you
know when i grow at that level would be growing i got the odds that it is an
services reagan came into office in other the three decades that preceded
rigmarole three point two percent growth the highs the his data entry on the
other families were such a big difference records three point two
percent growth ahead
faithful i worked for years prevented from whatever your
but i recall eleven percent unemployment under reagan you don't recall in yeah
totally cuba he had to work out at the present ok stephen moore computer to
prosperity is the book that is true that companies to pick up