Volcker Hints At Changes to U.S. Tax System
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Former Federal Reserve Chairman, and current Chairman of the President's Economic Recovery Advisory Board and Co-Chair of the International Economic Alliance, Paul Volcker, discussed his views on wide ranging topics in an interview with FOX Business Network on Wednesday.
On the current administration and President Barack Obama being anti-business, Volcker said that the perception is simply wrong.
"They are worried about his positions on trade, but he hasn't done anything with trade. He dad some rhetoric in the campaign, but since he has been in office he has been a defender of open markets. I can't really explain to my own satisfaction why the mood is as you describe."
With concerns rising over who will replace National Economic Council leader Larry Summers now that he has decided to leave the administration, Volcker believes that there is a need for a candidate that will be willing to bring the concerns of the people in the business community to the White House.
"Getting somebody in there with the talent to do that I think is extremely important."
Volcker also wants to have a tax system that is more friendly to incentives than that of the current system.
"Let's do what we can in those areas but if we are left with the Federal Government running 22, 23, 24 percent of the GDP we have to look at the revenue side. That raises interesting questions about taxes and in my view raising taxes is not exactly an opportunity, but if we have to do it it's a good excuse for reviewing some basic issues in our tax system."
He sees the corporate income tax as a mess, both domestically and it hampers the U.S. in terms of international competitiveness
“Our corporate taxes with the single exception of Japan, and I think they are bring theirs down, is significantly higher than any other developed country. This is an area where I think we could come together, right in that area and make some constructive changes that everybody ought to support."
Volcker sees the need to wean the housing market away from the government, but it’s not something that can be done in an instant.
"That whole sector of the economy which is very depressed is dependent upon government support of the mortgage market."
On the current administration and President Barack Obama being anti-business, Volcker said that the perception is simply wrong.
"They are worried about his positions on trade, but he hasn't done anything with trade. He dad some rhetoric in the campaign, but since he has been in office he has been a defender of open markets. I can't really explain to my own satisfaction why the mood is as you describe."
With concerns rising over who will replace National Economic Council leader Larry Summers now that he has decided to leave the administration, Volcker believes that there is a need for a candidate that will be willing to bring the concerns of the people in the business community to the White House.
"Getting somebody in there with the talent to do that I think is extremely important."
Volcker also wants to have a tax system that is more friendly to incentives than that of the current system.
"Let's do what we can in those areas but if we are left with the Federal Government running 22, 23, 24 percent of the GDP we have to look at the revenue side. That raises interesting questions about taxes and in my view raising taxes is not exactly an opportunity, but if we have to do it it's a good excuse for reviewing some basic issues in our tax system."
He sees the corporate income tax as a mess, both domestically and it hampers the U.S. in terms of international competitiveness
“Our corporate taxes with the single exception of Japan, and I think they are bring theirs down, is significantly higher than any other developed country. This is an area where I think we could come together, right in that area and make some constructive changes that everybody ought to support."
Volcker sees the need to wean the housing market away from the government, but it’s not something that can be done in an instant.
"That whole sector of the economy which is very depressed is dependent upon government support of the mortgage market."
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