health of the country. the economic health of the country. the one thing i was worried about this bill was that they would put in a delay for the tax rate reduction. they did not. it starts on january 1st, 2018, which means we won t have the recession that we had in 1982. so i m expecting strong growth starting right away. now, if you look at what i mean by strong growth, from january 1, 1983 to june 30th, 1984. that s a year and a half period, u.s. real gdp grew by 12%. that s at an 8% annual rate. i think we ll have growth far higher than almost all the pundits are projecting. far higher. number two, between august of 1982 and 1999, november, the stock market was up 1,340%, or
reduction is a big big big mistake. it s a mistake we made in the 1981 tax bill and it caused the great recession of 81-82. if you know they re going to cut taxes next year you ll for all of the income you can all of the sheltering you re going to keep it all and not change your corporate headquarters none of that stuff will happen until the actual tax rate drops from 35 to 20%. that s the one thing that worries me. maria: i totally agree why would businessman agers make long term investing plans? you re not going to make an investing plan for five years knowing you re not going to get a 20% rate for a little while. that s correct. maria: so do you think that changes by the time the house has it right away in 2018 at 20% well i hope the house wins on this one i really do and if my advice means anything i think these people should be very worried because we can ill- afford a bad economy in 2018 we had a terrible economy in 81- 82 and lost seats in the house and senate and wasn t u
years. it goes on to detail exactly why and how. this is what i ve been arguing for years. when you have high tax rates here sandra companies shelter their income. they ll shelter less than 20% than at 35%. also at 35% tax evasion is a lot more attractive than it is at 20%. less tax evasion. companies will move their headquarters to the u.s. and less gaming on corporate forms. all of these things. the one thing we know for certain is economic growth creates tax revenues in the u.s. this will create economic growth, it will create tax revenue coming forward and balance the budget. sandra: what kind of growth? grover norquist says bringing us back to normal. when reagan cut the taxes we had 8% annual growth for a year and a half from january 1, 1983 to june 30th that happened. with kennedy it was even more. when you are looking at this 3%
alternative to jimmy carter. and people took a chance on him. he had that going into mitt romney does not. do we obsess so much. i remember regan in the first two years of the first term was disliked. his favorables dropped. it is when the tax cuts took affect on january 1, 1983 that the boon in the economy occurred and his likeable. bill clipton and jack kennedy same thing. it was much more likeable when they provide prosperity. neil: how do you describe or react to the polls that show it is a tight race and best and iffy nonexistent recovery. it must explain to the president s personal appeal? i don t think so. jimmy carter was doing okay.
steve. he phased in the tax cuts. if you know they re going to cut tax rates next year, what do you do this year? you defer all the income you can. but once the tax cuts took effect on january 1, 1983, the economy took off like a rabbit. i think in 1983, it grew at 8%. 1984, it grew at 6 1/2%. just a boom. obama has done just the reverse. he has raised taxes on people who work. and he has paid people who don t work. i know you had a segment before on who is dumb and who is not dumb, but to get a professor to say you can raise taxes on workers and increase the amount of paw to nonworkers and you ll get more workers, that doesn t sound real bright to me. steve: by the way, that headline you re talking about is rick perry dumb in politico, when was the last time politico, which is a lefty blog, ever wrote is so and so dumb? is joe biden dumb? when is the last time they did that with a democrat? we cooperate find a single example of it couldn t find a