Nov 19, 2012|
Steve Moore, WSJ, on Lower Tax Rates
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Welcome back into the financial exchange on your Friday before Thanksgiving Dow is flat Barry at 12540 NASDAQ also -- 35 S&P coming in flat but they -- all down just slightly so they aren't red. Oil trading up 85 cents to 8630 you've got gold down 310. Ten year US treasury is flat at one point 589 pretty open. Steve Moore is a member of the Wall Street Journal's editorial board and the author of two books who's the fairest of them all and the truth. About opportunity taxes and wealth in America Steve Moore welcome to the show -- I -- morning great Buick here. Good day good to have you -- is the president and frankly are the Republicans softening their position. On tax increases. On the wealthy -- -- top 2%. Yeah they now they really Albert means that -- other -- the Republican Party has always been a very much -- like action. -- and opposed any tax increase is that I think base he did he leaves from the election where President Obama. Or did you'd be Victor bogus oil they've put tax increases on the cable what they wanted to -- quite correctly it straight tax rate could that would do. In their opinion and I think in my opinion considered damaged economy if you raise capital gains taxes -- -- actors and and taxes nonstop that this -- so. That's the real fighter right now we're really looking like a Mexican stand up because the president that the other day has backed up and he would never. By the bill that doesn't raise those tax rate L I think -- bear a lot right now. Yeah I'm not so sure crazy about the Republican plan needed Steve because a lot of that deductions. The -- they're talking about reducing deductions I take those deductions and I've I've got a mortgage in a topic they got. I'm not thrilled with either planning at a -- and and I haven't heard one word that I I haven't heard one word. About how we're gonna -- limit. Food stamp abuse or we're gonna reduce Social Security or welfare. I haven't heard a thing about entitlement reforms at a time yeah I'm I'm I'm not and I'm not feeling real. Hot and not a happy guy. Yeah look I agree with -- -- I don't think the economy need the tax increase right now what we needed to grow the economy and but we get back to normal rate of growth that we should. You know CE at this stage -- pay a so called recovery we would be having plenty of revenues in the dust it would be calling the problem has. It's been such an anemic recovery -- are -- You know the idea -- exactly right now I think is very very dangerous I mean look the economy is very fragile it is you know the unemployment insurance claims were way up. Last week partly that was disputed this storm -- You're just not in the job creation you need and I'm Wiki like increasing actually right now is it's a really bad idea. Where your buddies or heard MSNBC. Rachel -- well and I don't. Chris Matthews they've done a very effective job of demonizing the top 2% but. I and I loved your editorial today's Wall Street Journal because I said to myself. Hey here's a guy who's who goes on MSNBC which god bless I have no idea how you your very brave man but. But the the -- the top 2% he's a very large percentage of the income taxes in this country. Well they deal and the other point I've made in my editorial this morning watched that battle it'd be okay epic. Sure but I expect you know every time we cut back straight over the last hundred years for the 1920s -- -- -- -- under JFK -- moderate and every one of those times this year to actually create that the rich has gone up. And the tax statements are caught up stuff but if I were an advisor to President Obama I assure you I'm not. When I element that you wanna get you know. Warren Buffett and Bill Gates and Justin Bieber appear more access you know -- -- the tax rates don't -- them because history proves that the best way to get the -- and. Where is it today in and where is the Republican Party now on this -- this whole thing about the hedge funds -- about fifty or 60000. Taxpayers in the hedge fund industry. That hey you know 15% tax on -- on millions of dollars of income. I gotta tell you that's the one area that I've always taken exception to unite I've always felt. That that. Area (%expletive) that those that segment of the taxpaying population should pay more taxes -- -- -- the Republican position on that now. Well I don't know that really has a Republican position I'm kind of I'm undecided about that I mean some of the people -- -- you are in that industry can make very. Our case that the investment -- should be -- That the capital gains rate but you can also make a strong case that this really BA -- -- per day. Receive for providing service to you know people who are about stand up. You know outlook when I -- -- that we raised the tax rate so called carried interest spread on amateurs. From 50% to thirty actress but probably not you know I just don't like being actually go up and anyone out but it is they you've made the important point. The president gave a press conference on our. The other day you and he did not mention that they cut 101. Of the talk about restricting access and it that's outrageous we got several budget -- the old bloke yeah -- It's so enormous that cost so much and so -- all and then agencies have gotten quite -- thirty of his 40% increases in their budget. I could that they can take a cut which I haven't had actually opposed the idea of the automatic across the board cut I think they're. We need to start having government agencies sucked in her stomach and tighten their belt. Like I think if you do that if you have entitlement reform if you get. -- only the estimates as to Social Security fraud range anywhere from twenty to 50% rate people on disability. Really are disabled. Witty your your food stamp fraud is anywhere from ten to 30%. Your welfare fraud is anywhere from twenty to 50% so if you made drastic cuts in those programs the people that are. Perfectly capable of going back to work it just choose not to. Well I think that I didn't you know you've mentioned food stamp abuse on him I got when we have forty. Six million Americans today that are out food stamps at one out of every effort at least. You're right that the program that is right which brought -- -- but wait there's no I'll work requirement with respect to food stamps you can collect food stamps either you're not looking merger -- -- not in the job I mean my goodness we -- You know let's go back it is welfare reform where we're gonna get their hand up the back etiquette about. They got to go to work you like your what your food stamp card come and a clean toilets for a day at the park centers -- like. You have to work in order to get your welfare and I thought. If you do -- but you're right if you give up by the waist and a lot of people are actually getting the food stamps are already working its element -- we go into you know work program. They get into place that I'm a week I'm what opera what now what a great way to reduce the pot. Nine works it just it makes too much sense -- that's what scares me all right thank you. That's put in short supply and by the way the wind like I do this I'm I'm not a VCR to get trade secrets away. I take a couple belly up before -- I was wondering I thought I wasn't sure of Valium or Scotch I I think it was -- -- I. Could they be written here thanks very much. He is he has like the bravest guy in the world -- -- I never watch NB MSNBC but now I was there one time and I some -- my that's my friend Steve Moore from the Wall Street Journal is gonna take on. And finally you know. He. Insurance company local life insurance company mass mutual. Is in the news and it's not good news they got -- with a huge fine we're gonna talk about mass mutual in the next segment.