President-elect Donald Trump’s proposed economic plan calls for tax cuts for Americans at all income levels. But some rich taxpayers disagree with Trump’s ideology, claiming wealthier individuals should not receive tax cuts. The Patriotic Millionaires Chair Morris Pearl weighs in on why he feels wealthy Americans should pay taxes at a higher rate than everyone else.
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“No, I don’t [want tax cuts], not for the rich people,” Pearl told the FOX Business Network’s Stuart Varney.
Though Pearl did support tax cuts for lower income Americans.
“I think that the poorest among us, yes, I think the people that make lower incomes should have tax cuts, I think the people who have higher incomes should pay more taxes than people at lower incomes.”
When asked whether higher income individuals would give back the money they receive from the tax cut, Pearl said, “Most of the people in my group mostly spend their money on philanthropic causes and do a good job trying to help their country be a better country.”
When Varney pressed him on it, saying Pearl was avoiding the question, Pearl responded, “No, I don’t think anyone gives back. I think everyone pays taxes as the law requires but we have to change the system.”
Varney then explained that he would invest with the money from a Trump tax cut which would help the U.S. job market.
“I’m going to invest in assets which employs people, which eventually will go to my children and grandchildren, as is my right as a human being.”
But Pearl disagreed, contending that spending, not investing in assets, leads to economic growth.
“Well, those of us who are less wealthy spend their money, they don’t invest it in assets. Investing in assets is not what grows the economy. Spending money is what grows the economy.”
When asked what the tax rate should be for a wealthy American making $50 million a year, Pearl explained, “I think the tax rates about 39% is the right tax rate for somebody who earns $50 million a year.”
But when Varney questioned, “You don’t see anything immoral about taking more than half of any man’s income [factoring in federal, state and city taxes]?” Pearl responded, “No sir I do not.”