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tv   Washington Journal Peter Morici  CSPAN  April 6, 2021 7:26pm-8:02pm EDT

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next global expansion. fingers crossed, there is lots of work to be done but that is a great conclusion, thank you. thanks to you both. suspect the trial for derek chauvin the former minneapolis police officer charging the death of george floyd continues wednesday at 10:00 a.m. eastern. watch live coverage of the trial on cspan2, online@c-span.org or listen live on c-span radio app pretty few mr. live coverage watch 8:00 p.m. eastern on cspan2 anytime at c-span.org. government. created by america's cable television company. today were brought to by these television companies who provide cspan2 to viewers as a public service.
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>> peter parisi is a professor emeritus of economics at the university of maryland. also a columnist here to join us to talk about the economic efforts of the biden administration. good morning to you sir. >> good morning nice to bewr with you again. tsubaki rotate recent peace at look at this idea for infrastructure. this is a case where it could get bipartisan support pre-could you make that case to her audience? >> this lot of good and decent things in that infrastructure program. there is a lot of stuff thatog are good but have nothing to do with infrastructure. and the difference is a problem getting bipartisan support. let me lurch due to 22 major elements. there's about 600 billion that's advertised straight infrastructure. some say there's fluff in their sums people say not. pics et cetera billion per there's another at least at least 5 billion in their vote would call in distro policy.
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things american do not like to talk about using that word. it means things like providing the semiconductor industry because the chinese have been doing the same and the koreans and the taiwanese and so forth. basically subsidizing them. increasing support for rnd. i think those things have really strong bipartisan support. now frankly could beat finance rate mostly on deficit financing and some on the basis of increasing gas tax. that is a big red flag no one likes a gas tech but is not been increase in psych the 1990s. it's way out of date but we should probably do it. this a lot of other stuff in there that can be accurately characterize social programs we can get into a discussion whether those are good or bad. the reality is they are not infrastructure the knot industrial policy those are the items with which they have strong support. i do not believe the democrats are interested in a bipartisan
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approach because they cannot get the whole bill that way. into the go through the dense baseless saying hello et cetera mcconnell are you interested in supporting this? theyhe come up there let's do a reconciliation. in the last segment they had to they used up one, they lean on the parliamentarian of a a have to again. like a hydra. so my feeling is that there really is a potential to bring the country together. it is a lost opportunity. but the country needs that i'm not speaking as an economist buddy political server and a columnist is a common project rate something like the space program. and lord knows all railroads, bridges, airports all around sure could use a rebuilding. an industrial policy will i'm a conservative economist i don't particularly like it, i have to recognize a rule of the day in the global economy. if we don't do. going to lose out.
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talk about during the production board were too many to meet the chinese challenge that's the way to do it there is broad support in congress to get those kinds of policy. let's get on and do it. >> you want to ask a question 202,748,001 per democrats 8000. two for independence. you probably heard yesterday treasury secretary proposing at least a raising of multi national taxes, a higher rate but want to tell you little bit of what she set on that front and then get your response to it. >> sure. suspect competitive list is about more than how u.s. headquarters companies fair against other companies and global merger and acquisition bids. it is about making sure the governments have stable tax
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systems that raise sufficient revenue to invest in the central public goods and respond to crises. and with all citizens fairly share the burden of financing government. : : : proposals announced last week call for bold domestic action, including raising the u.s. minimum tax rate and renewed international engagement , recognize it's important to work with other countries to end the pressures of tax competition and co in the pressures of tax competition and corporate tax based erosion we are working with g20 nations to agree to a global minimum corporate tax rate that can stop the reach to the bottom. together we can use a double minimum tax of multi-nap
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international corporations with innovation, growth and prosperity in order to have a common corporate tax at a minimum rate you have to have a common base and say this is what were going to tax, in every country people like to exclude things, you can have a common 21% but if you broadly defined r&d and give r&d tax credit like we do you can have a smaller tax than everyone else and not everyone will oppose the
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same credit, that is the first thing, the second thing we've been engaged in negotiations for many years about how internet company should be taxed give a basic decision where goods are made and where their child.th in the good old days when we shipped automobiles around and we made cars in detroit and japan and here and there there was plenty to tax any tax and when they made the cars in the distribution cost. so everybody shared. if you're someplace else on the west coast and you come up with a sudden luncheon solution and the basis for cell phones apple,n
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everybody else. 120 countries around the world, everybody can agree. with the intellectual property driven companies, you can move the company. you could pay some fees to get out of the united states.
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you can move to the cayman islands or bermuda. it's that simple. there is not much you can do about it. if you put a tax on what they export, you violate international law. i just don't see this as a starter. it's the sort of thing i don't see this as a starter, i would go to this to rewrite the paper. i'm wondering what is going on over the treasury department and i don't mean to be bipartisan and some of the proposals argued by the trip administration for example the teva, based and come to an agreement and build big high-tech companies, we are equally ludicrous. i am reallyy starting to wonder what would they do with the
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treasury department. >> as far as the political side we heard senator joe manchin speak out against the idea of raising the taxes, what do you think that move does as other democrats who may not want to see it that high in particular amongst republican to don't want to see it got high. >> now there may be a political motivation and it requires physique to do that, and thehe w york times or newsmax or what have you. but let's pretend that i yam, then you can say when they say this is going to make us uncompetitive by going to 28% they can save going to get the international negotiations going so everybody raises her taxes so will make it noncompetitive. senator joe can go along with the tax and give them the boat everything passes by 50 votes these days. and they'll get their tax. and they'll get there worldwide minimum that relieves us of the
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competitive burden of having a highbu tax rate, sometime in 20, 2555 for the next millennia. but is not what happened any timeframe soon. i really wish i could speaksh personally with the treasury secretary. because i really would be amused by her answers and reminded me of the time that i said we needed an electronic currency and secretary mnuchin told me he was not interested in that, get to happen yesterday one of the things you can count on of the world of economic policy is economist have to deplaned in the past and it's hard to get them looking forward the treasury department no matter who's in power is playing yesterday's baseball game
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without even the benefit of yesterday's paper to show them the result. >> let's give them a call this is mary and fort washington maryland, democrat line yon with our guest professor of economic university of maryland. hello. >> hello i just want to say i'm very upset about the fact thatha joe biden's agenda when it comes to taxing the corporations as sounding like business as usual. what the hell is 28% going to give us when it was 35% report was knocked out, amazon pays no taxes. i will boycott any company that does not agree raising the taxes higher. we need to have the money for the infrastructure you want to create. and he's not going to get it because were docketed tolerated. you could say what you want to
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say everybody seems to be owned by the corporations which are not people. the people need to know the truth and maybe you should tell them the truth, the people have the power and were going to use it. but right now the corporations own us and they've owned us for 50 years. that's all i got for you right now but i will boycott and joe manchin needs to get out office is not a real democrat. >> you touched on an important problem you can set at any rate that you want but there's good ways to avoid it with deductions andre exclusions and chiseling away here and there and so forth, bb attack string will be 0. 20% limit is highest in the world as a rate but what matters is what they pay. if you're gonna boycott every
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company that opposes a corporate tax increase i would suggest you matter be good at making at home and selling your own clothes and other self-sufficiency. i doubt there's going to be many companies that support this thing unless they have deductions and exclusions. maybe jeff bezos can come out and support it because you have all the stuff going for him. i don't know. i would have to look at the corporate returns. but this goes way back back when i was a kid studying economics in the 60s, had a monopoly,s every kitchen in america and it didn't pay any taxes on his profits. this is a problem. the rhetoric this is were owned by this or owned by that. that is like shouting. if you go to church and you're involved in a meeting and you shot like that and if you get to any process in the root of the
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problem. right now are shouting at each other on these issues. when i couldn't get very far very quickly. i think senator mcconnell said something that was very poignant, yesterday senator schumer said this will put an end to republican obstruction at every chance he gets he gets says something like that and mcconnell said how would you like if we get a 51 vote majority and we start passing national rights to work act, reading dangerously close to almostta authoritarian solutions where some how you can get your power and ran through an agenda that is contrary to the weight of 49.5% of the way the people feel, the countries terribly divided and it's been that way for a long time and all the shouting and screaming is not particular useful. >> let's hear from michigan on
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the democrat line. >> in morning, everybody keeps talking about everybody else but i've yet to hear from the very beginning of the pandemic i have yet to hear anybody talk about the disabled people in this country. ronald reagan said why punish theun successful. what about the people thatt didn't make it after paying for years into social security insurance policy just like every social security recipient inlili this country has. i did over 25 years and wanted up having three spying surgeries, now i'm on disability and i'm living on less than a wage that biden keeps talking about that is unlivable, you cannot do that, you cannot do that, you have hundreds of thousands of people in this country and i live in the less than a minimum wage now that i paid for years into the very
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same insurance policy that every social security retiree has paid into their whole lives just like i have. a few years out of 25 years, maybe three i went without being able to work. but i stillpp supported myself d then i worked for 25 years and wind up having to live like this. i just had my tax credit to get away my property tax credit taken away i'm on a little as income is i've got, this is how you guys are paying for a whole lot ofhe the stuff. >> you put a lot out there for our guests, take what you wish and go without. >> a couple of things first of all we need an enhanced national
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tension system but one that does not discourage people to work when they can work. we need to recognize peoplee living longer and they're not physically engaged in physical labor but it's not quite what it used to be. when i was a young man one of the many jobs i had was a gravedigger and another working at a warehouse and i remember hoisting boxes up to the third level of shelves and we pass them up and did it by hand and inside the forklift trucks that run on propane they were terribly expensive and we only did it for limited applications. it is simply needed to be done, people don't lift boxes like that anymore. we can work longer if we do that we can provide people with more generous pensions. the second thing when i began my working life, i'm 72. we were told your old age
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retirement will have three lovers your social security, your private pension or the ira coming into session in your home yet to pay off your homes are not paying a mortgage in your retirement. the private pension cannot be relied on, is simply cannot. intuitive people did and they find themselves in the situation and maybe they haven't paid off home and maybe they don't all they have is a social security check which isay not enough wheelies and it would not be enough that we assumed other money would be there. we need to come up with a system this is been talked about for a long time that encourages people to create irs so they have something in create them young. after say something that is alarming we talk about this with the business networks it's really hard to get millennial's designer for payroll deduction even if they can afford to and we talk about our own kids be
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difficult in that regard a lot of young people setting themselves up for a bad and they think they'll be able to work forever. i can understand mortality because the death of the future when you're 30 years old, the notion that you be able to work forever when you have people all around the cannot should be a vivid example of why you need to be going on this. but we do need a better national pension system and we need one that is not on private employers delivered, private companies don't live to 75 years and if conceivable when you get a job at 21 at a company and state your whole career which is not very normal these you raise but suppose you did in carryingpo tt benefit from employer to employer, a lot of those employers are not going too be around there to go out of business, technological change, put them out of business
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somebody's pension like that, i don't want to take a particular company, but the people that they made carriages did not make automobiles in the end, that made combustion engine cars may not be those that sell most of the election vehicles. the people that rely on pensions from the traditional or legacyra automakers they find themselves very disappointed, if you think i'm not talking that way about the very large companies yet another downsizing, the couple things i know that are happening all get a decade older and florida will have another downside. eventually the block of ice has a little bit of water on the beach that evaporates in its gone. >> let's go to stephen in pennsylvania, independent mind. >> in morning i'm concerned about the tax increase across
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the board in, what i found since working since 1980 they took away her pension in the 90 and we had the 401k come up, that was lost twice in my lifetime. nobody is talking about the real sticky hands and the politics that have taken the money away since the 60s when my dad was alive. every time they go to get something they reading public trust. i don't think her politics and should be doing that because we would have enough money would social security and other investments over the past year if they would stop taking the money away because a tax increase that mr. biden is
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proposing is going -- how can i say hobble the american business because of the global economic tax increase. >> go ahead. >> i didn't think i was writing lines in the washington times when i talked about the washington tax increase. let me give you my story you can decide whether it's lies or if it makes some sense to you maybe that's a more appropriate way to accept your challenge, i am terribly concerned about the tax increases and i know the tax rates rates are much higher in the eisenhower area. it's what you actually pay that matters, on the personal income tax not that many ways out of it. you have tos pay. also the state exclusion of 11 million it is around that for a couple around 22 - 23000000,
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you have to pay and if you have enough money than 20%. if you look at who does the investing in america, this is very important when i'm talking not investing in the florida motor company the water goes away. but the real investing that goes on in america is small startups, s.the other one in apples, facebooks, microsoft and so forth, there is a lot of venture do it and theyt tend to be older people that it made their fortune and spread it around because maybe one out of ten of the enterprisestt has succeeded and their whole payoff is in terms of capital gains, the government doesn't subsidize those activities the way it does in china or in korea or in taiwan, we use the capital gains tax break to subsidize it.
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that might not be clean and transparent but that's what we do. if mr. biden a couple to get its way they're gonna tax back at ordinary rates and raise it to 40%, the other thing about the old people that do the investing, an awful lot live in new york and california, that is the reality, they do a lot of nice things in mississippi and investment startups is not one of those things, it is really not where it happens, happens in california in a happens in new york. if you look at the consequences of an older person investing, money that was never spent, he already has his big house in the shop and all that stuff, his plane. if you look at the consequences of investing in a startup he has a one in ten chance of succeeding and then when he succeeds he'll take about 75% of
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the profit or 85% of the profit and tax it because of the tax increases that are now being planned in terms of ordinary rates, capital gains and so forth, what does that mean to you, the first guy doesn't get to keep his money, what do i care, the reality what is driving the american economy has been in innovation they have been creating the jobs and the wealth and we complain how big amazon is and if our people wouldn't be working it's not just people that push boxes and warehouses it's marketing people and i got an ad in my bill yesterday, they didn't get the message on my age. the thing is we can't afford to smother that or the little guy isn't going to have a job and i'm afraid that's what's going to happen. in the woke religion of inequality and unfairness and so
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forth, it seems as though being successful is something that is grounds for exclusion, banishment and so forth, though successful people manage jobs. i sound like the gop, they don't mean to be. i've often felt that the gop itself, when i went to the white house where i was more welcome during the trump years not because of the trump but a conservative economist i would talk about the needs of electric vehicles come i think that's mildly important to the country, is terribly important, it's important of the transcontinental airways, we don't have a level playing field. and were not promoting it properly, they are incredibly advantage. in the high level playing field, that's very much the detriment of the future of the u.s. work, if we are not making those vehicles, we will be driving them. >> you call the numbers come out
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for jobs last week as far as the unemployment rate from 6% 916,000 jobs, those of the broad numbers what do you think about what underlies that, what's going on. >> 90% of the economy this recovery is great, productivity is rising rapidly and they can expect their wages to go up but a lot of people lost their jobs in this pandemic, they will never get them b back. one of these that we learn how to do use technology for example, work and have fewer airline pilots, were also going to have fewer sandwich makers. and for them, the pandemic and the recession will continue and continue for a long time. if i was disappointed in the economic industrial policy side of things in the bill, it was that there wasn't a meaningful quick, do it right now retraining initiative for these
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people. many of these people live in the wrong places, if you make sandwiches in new york their stock would be a job for you at the sema chop and there probably will not be a job for you at amazon office in manhattan doing marketing. because you do not have a background we need to retrain them. most of these people don't have the money toel relocate. there was nothing in there for them either. that's what we desperately need. unfortunately the president carries with him biased just like donald trump and barack obama, they carried baggage from their childhood. with joe biden it's his irish heritage, he's very inclined to anything positive of the uk in his wife's at community college teacher he wants to send them all the community colleges.eg somebody making sandwiches it was 40 years old and has a high school education isn't going to get much sent off to the community college in new york city, first of all he doesn't need two years of training
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learning how to read a good composition, any support team in the code, with proper relocation assistance we can use the department of labored apprenticeship which pays $15 an hour and doesn't cost you to go to school you get paid to go to school and it leads to jobs on average to pay 60 - $70000 a year that's where the money should be in the initiative should be, i write this all the time but the phone never rings because it doesn't fit the woke that permeates the council of economic advisers and the board of treasury department right now, and never did. and it doesn't fit into joe biden's view of the world and its great progression from 1962. >> one more call from john, california independent line. >> you are on, go ahead. >> i one simple question i have
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another statement my question is about corporation, why did they pay tax when the money is passed through to the dividend holders, it makes no sense to me. >> i think it's less than amusing to talk about lien lines in terribly desperate people, i'm not for an open border, don't get me wrong but i'm not for doing them any harm as well i think this administration policy is misguided and i think the last ministrations policy was terribly guided but we don't have time to go into why we have this migration problem at this moment with regard to taxes on dividends my feeling that don't pay dividends, double taxation is a real and profound problem that we've been unwilling to talk about, and they're paying their fair share even if the
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company keeps all the money and has no corporate tax the shareholders are going to pay it when it's distributed either in the form of higher stock values and then they pay the capital gains tax or dividends in the steepest taxes on dividends, that's a problem. the corporate personal income tax are so broken not just in the united states and europe but so beyond political repair because politics is politics is politics and it goes back to the center and it goes back to the greeks who spent endless hours debating and we would probably still be in the garden of eden if we had politicians because we never did in the apple. we ought to go to evaluated taxes of 20% and that would be enough to finance mr. biden's agenda and enough to finance a benefit for children even
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republicans like mitt romney and i think that's going to happen. and so forth. and it would be enough to finance other people in addition to social security for the time being and that we wouldn't have these debates of who's fair, what's fair, what's upside down and what's upside up. i think the trump administration in the tax-writing people there is a republican era that really let us down because the tax reforms that were proposed on the corporate tax look a lot like of failed evaluated tax, i would rather not do it in an unveiled fashion, transparency, vitamin a for everybody to see but you have to do what you gotta do in washington i'm into not what's perfect but what's possible and they really think they let us down on that and it's really unfortunate.
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>> this is peter, he is a professor of meridith economics of the university of maryland and you can find the work online, thank you for your time today. >> it's been a real pleasure to visit with you again. >> c-span "washington journal" every day were taking your calls live on the air on the news of the day and discuss polity under policy issues that impact you coming up wednesday morning the michael knoll show discusses his podcasts and news of the day. then we'll talk with criminal justice professor about his research into police misconduct and prosecution. watch c-span "washington journal" live it seven eastern wednesday morning and be sure to join the discussion with your phone calls, facebook comments, text messages and tweets. >> c-span is your unfiltered
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