Transcript for Battle of the Riches: Rich Lowrie on ABC's Top Line
Rich Lowry is joining us there's one. In -- to one in New York one -- -- to -- -- flowers have never been together in the same place at the same time we -- preserving that tradition but. Now for the first time ever they are in the same broadcast or webcast at the same time will be to Begin our questions with -- mr. Rich Lowry wouldn't IE he. Who's in Washington Rich Lowry is -- financial planner in Ohio. Who'll Herman Cain credits with being one of the key architects. Of the 999. -- so rich it's terrific to see you first of all. Thanks for having me it's good to be here it in my pushing you is there's so much talk now about 999. What do you make of all the criticism is that there. No I think the plan will stand on its own two feet once people get a chance to carefully examine it. The first criticism has to do with the sales tax. And essentially what we're doing is pulling out taxes that are already imbedded in the price of everything you buy. And we're making -- visible so we're not increasing prices. Were increasing visibility it is unlike. A state sales tax which does increase prices here were pulling out the corporate income tax the personal income tax. All payroll taxes the capital gains tax in the death tax -- when you do that. Marginal costs of production will go down a lot. And then when we put the 999 taxes back in the net reduction. Is about fifteen percentage points in the total size of the tax pledge. And that is going to be the key driver behind holding -- line on prices expanding the economy creating jobs. Data rich rich. Or go ahead John -- Baghdad. Rich you know -- US help us get to know you a little bit better you know you worked as -- Wells Fargo investment advisor in Ohio. For a while you come up with this with this very popular plan now. -- give us a sense of your experience working with economic models like this in. And certainly. Since sweeping policy changes that that this would entail. For the first part of my career spent focused on market strategy and -- spent a lot of time looking at the connection between what Washington does how it impacts of the markets in the economy and ultimately the impact on main street. I learned economics from art Laffer. From June when -- From Steve Moore when he was at the Cato Institute. From chuck Catholic -- better and a number of others that I consider my mentors. So although I don't have a Ph.D. in economics. I don't think you need one in order to focus on the simple truths. Of economics which -- that production drives the economy. Not consumption. Risk taking drives growth. And that measurements have to be dependable a dollar has -- always equal a dollar the same way and our always -- sixty minutes the economy depends on that. And those of the three simple truths that were focused on. Rich you are a key advisor Herman Cain. Herman Cain is headed in pristine 36 hours to say the least over the course of the last 36 hours it's -- his explanation. Of these sexual harassment allegations. Has changed or evolved. You are -- financial planner you are an accounting expert. Give us here forensic accounting analysis. Of what he's been saying do these statements measure up but now -- always -- sixty minutes. Did he -- statements he. Whole. You know consistency. Welcome it as an economic -- record comment on the economics -- it. And he's gonna handle this situation and I can verify that it will have zero impact. On the six million jobs that the 999 plan will create. And it will have zero impact on expanding the economy by two trillion pushing up wages. By 10% overall I imagine this report that was the first you heard of these allegations he. A cause any concern for you that this -- you're working for as this surrounding him these charges of sexual harassment. I can speak to the -- first -- he's a good man and I'm gonna stick with economics and allow him to handle the situation. -- -- Can you give us a sense. -- On the mood of the campaign's -- over the -- past few hours 36 hours. What have you guys been feeling what's the sense you know focusing on the economics here is there's this other stuff has come your way. We're gonna continue to execute the same game plan that's been in effect all along. It was the same game plan that got us to this point in the polls in the same game plan that had. You know the establishment. Largely discounting our chances so. We're gonna focus on business at hand and you know take our message our campaign directly to the American people. All right and I'm sorry you -- a minute. About that message real quick rich sort of -- in John bit. It doesn't go forward you take this out to islands of these early primary -- caucus state -- cell. Your plans -- voters who have questions about your new taxes in places that they don't pay taxes saying states without a sales tax. Or other world -- -- what -- or elsewhere that that's wrong. They already are paying the taxes if you follow the production process the -- marks up their product. To cover all their costs including taxes. They pass that onto the food processor who marks up the same product to cover all their costs including all their taxes. The same happens with the distributor the same happens with the retailer. So by the time you -- -- buy anything in the store. We're already paying those taxes it's just that -- embedded and they don't see him. The favor that we're doing everybody is pulling out taxes where they're invisible. And we're making -- visible. It illustrates the fact that there is a difference between the incidents of attacks which is where you -- the tax. And the burden of that tax which is where -- and no matter where you came attacks. It's gonna hit all of us in the pocket you're either gonna see taxes visibly on your paycheck. Or you're gonna pay them -- visibly when they're buried and their prices so the first message to everybody. Is that all this does is increase visibility. Not prices and when we take this to Iowa and New Hampshire and everywhere. The first thing people say to us is they say regardless of what the others are virtues are of this plan. They see how we're getting Washington out of the -- we see how we're leveling playing fields. They see how by not allowing Washington to pick winners and losers. You're gonna essentially reduce their power and influence and put it back in the hands of the people are right rich Larry thank you so much for joining us in Washington.
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