hi welcome back for today's counselor who try a little something different ominous shut
up for a second unless someone else do the talking for a change it is something
we're calling it
the daily rate
should help they're here to help us once a segment of his friend of the show jane hughes
from the young turks he's got something to say about tax cuts for the rich
fan who they've really
benefits
i might turkish friend the floor is yours
baby dylan had the conventional wisdom in washington and certainly among the sort of
circles is that tax cuts
uh... for the rich always work they always stimulate the economy and what happens is
they could enrichment take their money and create jobs with it
an economy improves so here's the problem with that
it when you look at the facts it is completely utterly wrong
so for example of the lowest taxes we have in the country almost almost ever were right
between nineteen twenty five at nineteen thirty one
where they were that bad bout twenty five percent for the richest people in the country
and what happened
ek total collapse the great depression
now
how the two thousand tours of the as they are you sure that there is a tax because they
could that cause the event that the stock market collapse
nydailynews zipping it yes i axle of what of course is a number of factors involved
in any that crash and many economic boom right
well let's look at all the numbers first and see that you see a trend if you just look
at the nineteen twenty five nineteen thirty one numbers you might say well you know what
mid-level shot of the great depression sure karaoke the and but that's uh... but that's
partly because the rich have all the money
and he used to speculate which doesn't help the economy
so when you go to the to thousands george bush has the giant taxes in fact a record-breaking
historic tax cuts and what happens in two thousand eight at terrible crash anna recession
which is now being called a great recession let me give you a little bit more perspective
on this the two times but the richest people one percent of the country had the highest
percentage of our nation's income where in nineteen twenty eight one eight twenty three
point nine percent of the nation's income and in two thousand seven when they had twenty
three point five percent of the nation state cup so they have a giant percentage of the
nation's eng com what happens the very next year nineteen twenty nine crash
depression
two thousand eight
crash recession so now we see what happens when the rich don't pay very much taxes but
you might be wondering what happens if they pay too much taxes that's gotta hurt the economy
right so let's go to the golden years of america nineteen forty five to nineteen seventy this
is the years of the conservatives law than they talk about oh my god the golden you look
at these instances let me just go back to that
what turns out you go back to their tax-rate between seventy one percent and ninety four
percent
consistently
at ninety one percent for the highest marginal bracket
so what happened week add incredibly high tax on the wealthy we had any new
warmest economic boom a legendary historic economic boom and created the legendary american
middle-class so that those of the facts
and as ronald reagan was said
faxer stubborn thinks so let us take your theory
and apply it to the current tax code which is obviously highly corrupt to be that we
all live in one of the most corrupt countries in the world because of our tax code
uh... how would you be even begin the process of the type of applying what you better starting
to uh... of taxes
first of all right now sunnier days in stock morgan attacks a fifteen percent status comical
that is absurd
incur just speculation encourages you take your money out then try riskier bets which
leaves the bubbles which lisa crashes
so what i raised that fifty percent hell yes i would raise that thirteen percent all of
us all the people watching don't pay anywhere near fifteen to something like spider so why
the richest people in the country paypal always write are doesn't make any sense let alone
the this
income-tax for the highest practice what i a preset when clinton increase it
love our economic boom whatever gonna learn from history
mohammed al used what connection
walk me through come a little confused how raising taxes on your contacts
tries to an economic boom other than the fact that it may have happened at the same
debate that did the same period of time but i but how do you connect the dots
all right now if this good series on a first of all difficult we see i'd vote for america
seems like no i don't think that's always the right is it
it's such a great conventional wisdom
it with were blind to the fact so fax matter numbers matter it happen
as to why it might have happened look one of the if there is an economist habits that
people if the yeah art actual a hike that percentage had an incentive to keep their
money in their business is the sort of taking it out for personal consumption or taking
it out for speculative trading c_d_-four back into their business hire more people grow
their businesses and that's one of the reason we have economic boom
if he were to look
at those who argue they'll lower tax rate per capita capital gain represents a fifteen
percent
is imperative
to get money into our economy to invest in this industry r_d_ of new businesses and that
you want to incentivize
rich people who have money to invest in starting a new businesses
uh... how do you respond to that
quickly
they're just not the first let me just not borne out by the numbers
and second of all
uh... we tried it that way we lowered the rates we lowered elation lower detail what
happened
clash clash crap
so can we try something that actually worked and there's always is there a ball my god
or they don't go to another country really were they going to go they're gonna go to
botswana have added costs they're going to go to somalia have adequate know they're gonna
coming in on it as a way to see more and more on the economy i got it be unfair thank you
so much