Transcript for Green Room: Flat Tax Politics
Welcome to put it you know our conversation about all tax -- -- Until March the political is at least in many flat tax booklets over the -- Steve Forbes as it they'll ramp accident at an atypical apparently. Military -- -- -- what makes this year different. The fact I think that. Resentment of the IRS is reaching critical mass the fact that the IRS itself says we spent six. Billion hours a year that's your crew -- three million full time jobs. Complying with this -- The fact that if you if you if tax compliance for its -- industry in -- largest industries in the country. Employs more people -- -- percent in court UPS Wal-Mart McDonald's. Combined. But Pattinson and I don't think this year's different if I think they'll do we -- -- -- -- flat tax and recreation -- once again. You know what. The reason that America has used the tax code. For social goods because we like the private sector. And so. Deep Western Europe has you know basically and -- socialism to do all of these things will we have embraced as having business. Do our health care and our universities. And our arts and all of that and -- -- an hour and our housing. With garden apartments from middle class people all of that. And you know you might like or dislike that but that's a result of the tax code. And that is something that Americans tend to like a whole lot better than having government Perry's proposal is flat tax two point. -- because he does try to respond to the specific complaints that sank it in 96 season with workers if it into being negative receive four to 96 largely because he couldn't sell the idea. Eliminate the mortgage deduction charitable deductions and local tax deductions Perry leaves all of those but he remains he continued the blue route -- optional. I'm excited -- so we try to respond and yet you still the big issues. Equity because by reducing operational -- taxes on capital gains and dividends and interest inevitably is a big fact that people out. -- have a question whether you can find the government very own estimate. Is that absent any dynamic scoring economic growth increasing. It loses 900. Billion dollars a year by 20/20 -- which is more than double the cost because. Choice of doing it. As a -- you don't you don't -- until it -- time he makes it -- -- it becomes an Alternative Minimum -- 2.0. -- you know -- arithmetic but. -- -- -- I think George -- -- this will with a flat tax or some of the other proposals there's a simplification. Side and then there's the rates. Now I think if people wanted to make a deal. You could maybe make some deal about simplification. And for a bunch of people to serve the country doesn't even itemize -- you could make. -- tax -- extremely simple without doing anything. I think when you hey there's not a lot of sentiment to make it all and be. When you staple it to the issue of dropping the top marginal rate -- you know the one person literally makes a hundred million dollars a year is gonna get twenty million dollar tax cut. I think that the chances they go for the simple agency. I always wondered why does the market for polls always a limit. Tax. And why we made -- This argument why would not be so are the same rate as everybody else because he's articulate well. -- Justice Department double taxation but -- -- in the nineteen in the 1980 Ronald Reagan. Tax. Operate from seventy to 20%. Which would radically devalue the mortgage interest deduction yeah. Housing sales and house values went up if you can get economic growth going all kinds. Actually contributions went. One because 70%. -- -- And the people who when it costs them you know. Costs and a great -- -- money to you can. Easily be relevant. Harry does not revised. But it does pass -- -- the Republican electorate history. It's much more blue collar it's much more -- -- -- working class voters and it. And will Romney made this kind of class conscious argument against Harry -- -- he asked. That he made against the boards in nineteen because. Even Republicans are in the Romney's around in Romney's plan. Its payroll. Primarily geared to let's cut the high income rates and make that the driver of -- now. I don't actually think it is but the cutting -- operates and cutting the corporate tax rate. They've -- up all pitch their lot with that's going to be their strength of one you know that a primary difference Romney does. Why it has cut interest and capital gains only. You know that is. I'm pretty pleased to see him as -- this does Romney with his background working class warrior against Maryland in primary and if I. Asked -- I think he will have to -- If they want a president -- 200000 dollars and governments crucial threshold we got. Yeah. -- -- -- -- -- -- -- -- -- -- -- felt like like he embraced the debate you -- her -- why not throw out there isn't just something simple. And -- he appeared to embrace know it needs to be complicated we can make an example now that there may be elements of truth that something big mistake. Because it is people don't. Many of these things. That is reactions. And and that's the. But 59 this is an index the god had ten commandments Woodrow Wilson got blocked LaMont hinds had 57 -- this guy's got 59. Pick up the right three death -- Yeah although I would say again for his half of the party -- more managerial war college educated more secular. It's kind of a world there used and he is someone -- operated network their corporate managers he I think he is not just kind of tolerant tolerable nominee is someone they can actually we need -- manager for the economy for those who want -- -- -- presidents and come here and you know go to war against the parasite class and a rock through the windows of the capital. You probably never be acceptable to them yeah question is whether they can ever unified behind one candidate try to stop it and right now that -- just days and. He did and I don't watch it here. It was leaving it comes to me and it's not and this is yet and -- arm. And. -- Philadelphia realizes and -- it is of this.
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