(applause
heard as Forbes walks in)
Reporter
Engberg Voice Over:
"Steve Forbes pitches his flat tax
scheme as an economic
elixir good for everything that ails us…..
" |
 |
Forbes
SOT
“ we would see a renaissance the likes of which that has never been seen
before..”
|
|
Engberg VO:
It’s the kind of optimistic message people
want to believe.
But experts have trouble
with many of Forbes’ specific promises,
like
how the flat tax would boost economic growth….
Forbes SOT: “ By removing obstacles,
starting with the tax code, we are
capable of growing twice that rate..”
|
Cutaway of people applauding at some campaign event; Forbes is seen
walking through the crowd, shaking hands
Forbes, again, speaking from a podium |
Engberg VO:
TIME OUT- Economists say nothing like
that has ever actually happened.
|
 |
William Gale SOT: “ It doesn’t seem
plausible to think that we’re
going to
have a whole new economy or some
economic renaissance age due to
tax reform.."
Engberg VO: Forbes claims
taxes can be lowered without adding to the deficit
Forbes
SOT: “a flat tax would enable this economy to grow..that would mean more
revenues for Washington…”
|
Forbes, again, speaking from a podium |
(applause
heard)
Engberg VO:
That was called “supply side economics”
under President Reagan: less taxes,
equal more revenue…it didn’t work out that way |
|
|
(reporter
heard off camera asking question):
Is it fair to say that
the last time we tried something like this, we ended up with these hideous
deficits?
Gale SOT: its perfectly fair to say that
Reporter:
And that if we try it again,
your fear is…
Gale
SOT: that we end up with the same problem again…
|
|
Engberg VO:
Forbes claims the flat tax would throw lobbyists, tax lawyers
and accountants
out of business….oh yea, ask one…
|
|
Donald Alexander SOT:
" If Mr. Forbes’ proposals were enacted, it would be
hog heaven for tax lawyers, absolutely hog heaven.. We would have a
wonderful time gaming the system."
|
|
Engberg VO:
Example: the wealthy could hire tax
wizards to turn their
regular income into investment income, exempt from the tax
|
|
Janice
Johnson SOT:
"I’m sure we’ll dream up new loopholes
under the flat tax,
we always do."
|
|
Engberg VO:
Ok, how about Forbes’ number one
wackiest flat tax promise?
Forbes SOT:
“parents would have more time to
spend with their children
and with each other…”
Alexander SOT:
“That’s right, and the sky would be
blue all the
time”
|
Forbes seen again on camera, speaking from a podium
|
Engberg
(on camera)
The fact is, the flat tax is one giant
untested theory. One
economist suggested that before we risk putting it in,
we oughta try it out
some place, like maybe Albania..Eric Engberg, CBS News, Washington |
|
