Entries in Ronald Reagan (3)


'Buffett Rule' Could Be 'Reagan Rule,' Obama Says

Andrew Harrer/Bloomberg via Getty Images(WASHINGTON) -- President Obama invoked Ronald Reagan on Wednesday as he pitched his proposed “Buffett Rule” for the second day in a row, arguing that the Republican icon would have supported his plan to require the wealthiest Americans to pay at least the same tax rate as the middle class.

“I’m not the first president to call for this idea that everybody's got to do their fair share,” the president said at a White House event. “If it will help convince folks in Congress to make the right choice, we could call it the Reagan rule instead of the Buffett rule.”

The president quoted a speech in which his predecessor said it was “crazy” that loopholes allowed millionaires to pay a lower tax rate than bus drivers.

video platform video management video solutions video player

“That wild-eyed socialist, tax-hiking class warrior was Ronald Reagan.  He thought that in America the wealthiest should pay their fair share, and he said so,” Obama said. “I know that position might disqualify him from the Republican primaries these days but what Ronald Reagan was calling for then is the same thing that we're calling for now, a return to basic fairness and responsibility, everybody doing their part.”

The president made clear his call to raise taxes on millionaires is not about redistributing wealth, saying instead that it’s a means to boost growth. “This is not just about fairness,” he said. “This is also about being able to make the investments we need to succeed, and it's about we as a country being willing to pay for those investments and closing our deficits.”

The rule, which is unlikely to pass Congress, would require those earning over a million dollars a year to pay a minimum effective tax rate of 30 percent on their income. The proposal is named for billionaire investor Warren Buffett, who pays a lower tax rate than his secretary.

“Most Americans agree with me.  So do most millionaires,” the president said, flanked by millionaires and their assistants who support the measure. “We just need some of the Republican politicians here in Washington to get on board with where the country is.”

Republicans have sharply criticized the measure, noting it would raise only $47 billion.

“There are others who are saying, well, this is just a gimmick… just taxing millionaires and billionaires, just imposing the Buffett rule won't do enough to close the deficit,” the president said.  “Well, I agree.  That's not all we have to do to close the deficit.  But the notion that it doesn't solve the entire problem doesn't mean that we shouldn't do it at all.  There are enough excuses for inaction in Washington.  We certainly don't need more excuses.”

Copyright 2012 ABC News Radio


Reid: Cut, Cap, Balance Plan 'Radical, Restrictive, and Draconian'

ABC News(WASHINGTON) -- As the House of Representatives heads into a vote Tuesday on the “Cut, Cap and Balance” plan to let the government borrow another $2.4 trillion after adoption of a constitutional amendment requiring a balanced budget, Senate Majority Leader Harry Reid, D-NV., called the plan so “radical,” “restrictive” and “draconian” that it would not even pass the standards of George W. Bush or Ronald Regan.

“This legislation that they're debating now in the house is so restrictive,” Reid said on the Senate floor Tuesday. “It’s so restrictive, not one year of either George W. Bush or Ronald Reagan administrations would meet its standards.”

The plan would cut total spending by $111 billion in fiscal year 2012. The legislation would also cap total federal spending by creating a “glide path” that caps spending at 22.5 percent of GDP next year, and gradually decreases spending  levels over 10 years levels until locking in at 19.9 percent of GDP in 2021 and beyond.

The legislation would require that Congress pass a Balanced Budget Amendment (BBA) and it would need to be sent to the states for ratification before the president’s request for a debt limit increase is granted.

Reid said the amendment would impost “arbitrary, reckless” budget caps, force cuts to Medicare, Social Security, and protect loopholes.

“The so-called Cut, Cap, and Balance does absolutely nothing to protect our economy from the kind of recession from which we're now beginning to recover. If the economy wasn't already in recession, experts say this legislation would quickly produce one.”

The plan is all but dead on arrival in the Democratically-controlled Senate. President Obama has also promised a veto if it reaches his desk.

Senate Minority Leader McConnell, R-KY praised the House for taking up this plan, saying it is the “tough legislation” that the government needs.

The House is scheduled to vote Tuesday on the plan. The Senate will likely vote on the measure either Wednesday or Thursday but is not expected to pass.

Copyright 2011 ABC News Radio


Reagan Budget Director: 'Mad Men' at Fed are 'Out of Control'

Rep. Mike Pence, R-Ind. (L) and David Stockman appear on ABC's 'This Week.' Photo Courtesy - ABC News(WASHINGTON) -- At a time of national fiscal crisis, Ronald Reagan picked David Stockman to fix the federal government's budget. This weekend Stockman told ABC News the U.S. is speeding down a path to fiscal ruin and that extending the Bush tax cuts will only hasten the looming catastrophe.

"Both parties, unfortunately, became free lunch parties,” the former director of the Office of Management and Budget said in a debate with Indiana Rep. Mike Pence on ABC’s This Week. “Republicans cutting taxes any time they had a chance, never doing anything about spending; Democrats digging in to defend everything that was there. As a result, we now have this massive deficit."

"We're now becoming the banana republic [of] finance, printing -- the Fed, these mad men who are out of control at the Fed are printing -- new money equal to 100 percent of the debt that we're issuing each month. This will not end well," Stockman said. "It's going to end in a disaster."

Stockman said that extending all the Bush tax cuts would be a bad idea. Pence disagreed.

"I don't think higher taxes is going to get anybody hired. I think raising taxes in the worst economy in 25 years is a profoundly bad idea," Pence said.

"The way we're going to put our fiscal house in order is you have to cut spending now," Pence said. "Everything has to be on the table. ... But you can't balance the budget on 9.6 percent unemployment," he said. "The last thing we should do is allow a tax increase on job creators in this country."

Stockman explained that raising taxes is normally "a bad thing to do," but that the United States "is in such dire shape that we have no choice but to accept the negative trade-off of some harm to the economy to start paying our bills," he said. "Otherwise, we're dependent on the Chinese, we're dependent on OPEC, we're dependent on a bunch of hedge-fund guys to buy our debt and this game is about over." 

Copyright 2010 ABC News Radio

ABC News Radio