Thursday, December 16, 2010 Rep. Ron Paul Talks Taxes, Spending | Glenn Beck

Thursday, December 16, 2010 Rep. Ron Paul Talks Taxes, Spending | Glenn Beck With: Judge Andrew Napolitano Special Guests | Rep. Ron Paul This is a rush transcript from "Glenn Beck," December 16, 2010. This copy may not be in its final form and may be updated. JUDGE ANDREW NAPOLITANO, GUEST HOST: Hello, America. Tonight, the tax cut package heads toward a vote in the House, or does it? Wednesday, the Senate passed $858 billion package. President Obama now is telling Democrats in the House to pass this bill with no changes. Now, it's being held up by procedural complaints filed by the Democrats in the House. Meantime, the federal government is facing a shutdown if Congress doesn't pass a spending bill soon. The current bill contains about $8 billion in earmarks. Didn't we get rid of those? With me now, Republican congressman from Texas, Ron Paul. Congressman Paul, it's pleasure. Welcome here. Where do things stand now with this tax package in the House? Is the government going to shut down? Are the Democrats even going to allow this tax bill which keeps the tax rates, the income tax rates, where they are to come to the floor for a vote? REP. RON PAUL, R-TEXAS: Well, we're in recess now. So, the vote is not pending. It may come later tonight. It may come tomorrow. I predict that the government will not shut down. And that the vote will finally come out and they'll iron out their differences. But the fight is, you know, between some of the Democrats. So, whatever they decide, they do want to have some amendments, they want more debates, the people who are objecting. But I suspect that when the day is over, tomorrow is over, they're going to pass the tax package. But I guess we have to still wait and see. But it's been a couple of hours now. We're just sitting here waiting for the Democrats to sort things out. NAPOLITANO: Some of your colleagues on the Republican side, Congressman Paul, tell me that the number of Republicans in opposition in the House to tax package is growing and their theory is that the tax cuts are not accompanied by enough spending cuts. And besides, the estate tax is raise and the unemployment insurance which the federal government should have nothing whatsoever to do is being extended by 13 months. So, they're going to vote against it. And some of them, a few of whom you know very well have told me it could be as many as 60 or 70 Republicans voting against this deal. What are you hearing? PAUL: I haven't heard any numbers like that, because I am going to vote for the package, because I don't look at it as if I'm raising the inheritance tax at all. I'm voting to keep it from going to 50 percent. I'm -- because if you do nothing, if nothing is passed, the inheritance tax will be 50. Taxes are going to go up over $800 billion. And yes, there is spending in there you, but if you weigh spending versus the amount of tax cuts, it's overwhelmingly in favor of tax cuts. It is true that spending is a big problem. There are some problems in the bill. The problems aren't as big as said, because a lot of people who are against the bill say that tax credits are a problem. NAPOLITANO: Right. PAUL: I don't do that. I give tax cuts to everybody. NAPOLITANO: Right. PAUL: If you want to equalize tax credits, give more tax credits so everybody gets them and don't this micro-managing through the tax code. But, of course, this is the reflection of how inept the government is and the Congress and the tax code. We need to get rid of the tax code, the income tax. And we need to have a rule in the House that says only clean bills that we should vote on. NAPOLITANO: Right. PAUL: That would solve some of our problems. But we're not there today for sure. NAPOLITANO: Would it be good fiscally and philosophically if the government did shut down for a few weeks and American people could see life would go on without the federal government for a little while. PAUL: I don't think it would hurt one bit. You know, if an individual can't pay the rent on time, they might ask their landholder to say, look, I'll be there next week. They adjust. NAPOLITANO: Right. PAUL: And the owner and the renter adjust, and this is the way government should adjust. They should -- if they can't pay their bills, wait. But they are afraid the world would panic and the world would come to an end. But it would be an admission that we're in big trouble. But we are in big trouble. NAPOLITANO: Right. PAUL: But to deny it and to continue to spend and continue to play (ph) and waiting for the bond bubble to burst, that doesn't make sense to me. NAPOLITANO: All right. Yesterday, we all had on our desks here at FOX -- I'm showing you with my hands, that piece of legislation that Senator Reid and Mrs. Pelosi proposed. It's about a foot thick. It's 2,000 pages in length. No human being could read this thing in less than three or four days. It's filled with billions and billions in earmarks and wasted money. Is this the price that we have to pay in order to keep tax rates where we are? That the Democrats and maybe some Republicans, too, I don't know, have to give this Christmas tree ornaments to their constituents in order to take back what the right hand, what they've given with the left? PAUL: Now, you're talking about the omnibus bill, I guess. NAPOLITANO: Yes. PAUL: The trillion dollars. NAPOLITANO: Yes. PAUL: Oh, no, it's rather typical. Nothing has changed. Those who are in charge now certainly have been gotten the message and we don't know whether the Republicans got the message until next year. But, of course, I've been arguing this fight for 30 years. And that's why it would pretty hard to find any appropriation bills I've ever voted for because I've anticipated that the overspending and dependency on the Fed to print the money and order to cover the debt would bring us to this crisis. But the crisis is building because we haven't changed our tune. We haven't changed the tune on spending yet. NAPOLITANO: Right. PAUL: Or taxes yet. And, of course, we have haven't changed our tune on the Federal Reserve. So, all we have done is make our problems that much worse. But it's coming to an end. Markets are stronger than governments. And the market is saying that you can't just continue this forever. And I suspect here in the not- too-distant future, the market is going to indicate that they don't trust our dollar as they used to. NAPOLITANO: A certain junior senator-to-be from the state of Kentucky was on "Freedom Watch" with me tonight on the FOX Business Network will tell me that were he in Congress this week, he would vote against the tax compromise. Listen, I'm not trying to divide you from your son. I know you guys are going -- (CROSSTALK) NAPOLITANO: He would vote against the tax compromise because he thinks it doesn't accompany spending. Now, in fairness to him, he can do things in the Senate that you can't do. He could pull a Jimmy Stewart and stop Senate doing everything it wants if it's spending too much money. Am I right? PAUL: Yes. He could. But that doesn't change the attitude of the people. You can block things for a day or two or three, but ultimately, the people have to change. They have to decide they don't want welfare and they don't want warfare. NAPOLITANO: Right. PAUL: And then the Congress will respond. But I think what you say demonstrates how messed up this whole system is. The process is horrible, because you have a division here, very honest conservatives are saying you shouldn't vote for it because it's going to raise the debt. And others like myself say you're going to raise taxes $800 billion. NAPOLITANO: Right. PAUL: There is no absolute right answer for this. I just happen to think raising taxes now is worse than worrying about the deficit at this time because I think they have bloated the concerns about the deficits, it's more like $60 billion. And like I said earlier -- NAPOLITANO: Right. PAUL: -- they are counting tax credit as spending. NAPOLITANO: Got it. PAUL: And tax credits are not spending. NAPOLITANO: Before I let you go, we have 30 seconds left. You used an interesting phrase before, "The markets are stronger than the government." What did you mean by that, Congressman Paul? PAUL: Well, the best example was in the 1970s when -- and '60s -- when I was watching what gold and the dollar was doing. And we pretended that dollar was as good as gold at $35 an ounce. But we keep printing money. NAPOLITANO: Right. PAUL: But the world knew that they couldn't do it. So, finally, that broke down and gold when it was closed and then gold broke out from $35 after being there for 20-some years. So, the market overruled what the --- the government kept lying to us. Oh, our dollar is as good as gold. So, they're more or less are doing the same thing now. Our dollar is as good as it used to be. And everybody is going to take it forever. The markets eventually -- even if it's in the self-interest right now of China hanging on to our dollars and not bringing us down -- NAPOLITANO: Right. PAUL: -- there will be a day somebody will precipitate an event where people will buy our dollars less or they will dump our dollars and market will win out, because you cannot have a system where we can print money forever. If that were true, Judge, none of us would ever have to work. NAPOLITANO: Right, right. PAUL: All we have to do is say, send me some money. Ben Bernanke to send us all a check for $20,000 every month and we'd be so wealthy and we'd just buy stuff from China and we would be wealthy forever. But that's extreme. NAPOLITANO: Got it. PAUL: And that what we're moving toward. And eventually, it will be rejected. NAPOLITANO: Congressman Paul, thanks very much for joining us. PAUL: Thank you. Content and Programming Copyright 2010 Fox News Network, LLC. ALL RIGHTS RESERVED. Copyright 2010 CQ-Roll Call, Inc. All materials herein are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of CQ-Roll Call. 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