[Music] so treasury secretary Janet Yen totally wrong about jacking up corporate taxes as well as all the other tax hikes Joe Biden wants joining us now is the great Kevin hasset former chair of the Council of economic advisors distinguished fellow at the Hoover institution and author of the most important book of the 21st century drift stopping America's slide to socialism Kevin we're going to play a quick line from Yellen and then you're going to love this line here it comes well I believe the
tax increase would be um would not really harm the competitiveness of business most studies that have been done suggested suggest that there is very little if any economic benefit from having cut the corporate tax rate most studies Kevin Hassen what is she talking about you know I really have no idea you know I I think I'm giving up clinging to the idea that Janet yellen's going to be better as a treasury secretary than AOC when she says that it's absolutely a misrepresentation of the literatur
e and I actually sent your your guys uh some lists of studies that are either the old ones that I wrote with Alan arbach and Glenn Hub or the new ones that are coming out with professors at Princeton and Harvard and and University of Chicago that are showing big positive effects of corporate tax cuts and so I just have no idea what she's talking about years ago I want to give you credit because years ago you were roasted by the economics profession although Allan arach who I think leans more dem
ocratic nonetheless co-authored with you and supported your view and so did Glenn Hub uh who was George W Bush's CA chair so they're all smart guys now it's pretty much common knowledge we have a chart by the way that shows how revenues went up we cut the corporate tax back in 2017 and the revenues went up and they keep going up that's the unbelievable thing which M Yellen will not uh will not and Kevin I mean the studies I think now CBO studies bipartisan nonpartisan studies it was the middle c
lass working folks who got the biggest benefit the biggest percentage increase in wages which is was your argument for over 10 years uh even though you had to fight off The Barbarians at the gate right well here's the thing that that upsets me Larry and you know me I I usually don't get that angry but the fact is that there was no real wage growth for blueco collar workers during the Bush Administration and during the Obama Administration we had almost 20 years where ordinary working folks didn'
t see their real wages go up at all and then we said if you cut the corporate tax rate then firms will bring the jobs home and that'll bid up the demand for labor and drive up wages and wages went up as we said we said $4,000 they went up by $6,000 and so after 20 years of no wage growth we cut the statutory rate economic theory says that should make wages go up and they did and so the fact is if you're denying that evidence and you're willing to reverse the corporate rate reduction then you rea
lly don't care about blueco collar workers you really don't care about ordinary folks you just care about political power and shame on you Janet Yellen for coming out and misrepresenting the economic literature the way you did in that Congressional hearing and in fact poll after poll shows that workingclass folks okay why black brown doesn't matter they know they had it better during the Trump corporate tax cuts and they've lost ground with inflation such as it is the real wages are underwater a
nd now yelling raising is it's not going to pass thankfully but if they did they'd be further underwater right but she was more right when she said inflation was transitory than she was about this and last week she apologized for for saying that inflation was transitory and the point though is that it's an economic ideology that's inconsistent with science it's old-fashioned keynesianism which basically is socialism these are people that want to nationalize things in order to stabilize the econo
my and they really don't believe in free enterprise and you can see it when she's say let's just jack up rates on corporations you go back and look at our corporate rate Cuts they led to more Revenue more growth more wage growth everything that we said and to reverse that is to not really to care about the welfare of Americans yeah it's sad yeah no well said Kevin has it the best of the best thank you ever so much
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