Tags: Steve Forbes | tax cuts | mobility | economy

Steve Forbes: Tax Cuts Allow for Social Mobility

By    |   Monday, 26 January 2015 02:15 PM

While some critics of tax cuts say all they do is protect the wealth of the rich, Steve Forbes, chairman of Forbes Media, told Newsmax TV that the critics have it all wrong.

"If you want mobility in this country, the ability of people to rise up, which set of policies do it?" he asked rhetorically on the network's "MidPoint" program.

The answer is tax cuts, Forbes said.

"Reagan did it, John Kennedy did it with his tax cuts, and look at what's happened in the middle class in the last six years under those who pretend they're in favor of the middle class. Median incomes have stagnated."

Story continues below video.

Note: Watch Newsmax TV now on DIRECTV Ch. 349 and DISH Ch. 223
Get Newsmax TV on your cable system – Click Here Now

Real household income has declined during the Obama administration's tenure, Forbes said.

"So you people who say you love the middle class, you're pursuing policies that puts them on a treadmill, and the treadmill is winning. They're going backward, not forward."

So Americans with the least means are hurt the worst, he said. And who can bring productive change?

"It takes hopefully somebody like a Scott Walker or some others out there to confront the issue and say, you're right, the top 1 percent has done very well under this recovery under Barack Obama. The other 99 or 90 percent haven't done so well," Forbes said. He was referring to the Wisconsin GOP governor, who may run for president.

And why have the 99 percent fared so poorly?

"Because of their [the Obama administration's] rotten policies of excessive taxation, wrecking the healthcare system, binge spending, conjuring rules and laws out of thin air," Forbes said.

"If you have a team that doesn't win, you get a new manager that has a good game plan. We know it works. It worked with Kennedy, it worked with Reagan. We'll make it work again."

Meanwhile, Forbes said the Congressional Budget Office and the Joint Tax Committee are biased in estimating the impact of tax cuts on the budget.

They're "always biased against tax cuts," he said. "They always assume tax cuts will rip a big hole in the budget, will do nothing really over time for the economy, whereas if you do the opposite, it seems to work miracles."

That makes it difficult to pass tax cuts, Forbes said.

"Opponents of tax cuts can always say the nonpartisan Congressional Budget Office has declared that this tax proposal you're putting out there to reduce tax rates would end civilization as we know it," he said.

"The Democrats, whatever you think of them, they understand the importance of these seemingly complicated, non-front page rules in terms of pushing forward their agenda."

Republicans in Congress say they'll reform the CBO, Forbes explained.

"But the reality is they've got to change the personnel if they expect a real change. Passing a resolution saying take more cognizance, pay more attention to reality is going to do nothing."

Related Stories:

© 2020 Newsmax Finance. All rights reserved.

1Like our page
While some critics of tax cuts say all they do is protect the wealth of the rich, Steve Forbes, chairman of Forbes Media, told Newsmax TV that the critics have it all wrong.
Steve Forbes, tax cuts, mobility, economy
Monday, 26 January 2015 02:15 PM
Newsmax Media, Inc.

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
© Newsmax Media, Inc.
All Rights Reserved