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Rendell v. Cavuto

Reported by Guest Blogger - November 16, 2009 -

Guest blogged by Brian

On Thursday’s (11/12/09) Your World, Pennsylvania Gov. Ed Rendell debated Neil Cavuto on taxes and the economy and Sen. Harry Reid’s suggestion to raise taxes on those earning above $250,000 a year. Predictably, Cavuto was against such a plan. As usual, Rendell did an excellent job. At the end, Cavuto conceded, “You might be right.” With video.

At the beginning, Rendell said we should ”frontload and reauthorize the Federal Highway and Transportation bill."

Cavuto thought that "a moot point… It is a waste of time with these tax hikes going on. I'm wondering if that's the stuff that's going to inhibit folks from hiring, and just make the environment worse, not better."

"Remember 95% of small businesses are going to be exempt from those tax hikes, and that's where the real job creation is," Rendell shot back.

Cavuto said, "Yeah, but as you know, businesses pay those Medicare taxes as well, and as Sen. Reid goes on and looks at seriously doing this… not only are those individuals, who might be few and far between in your eyes, paying it, but the businesses are paying it too. So they'll think twice about hiring a lot of top workers, I am sure, in that enviornment, right?"

"Of course, doing nothing also makes businesses very reluctant to hire new workers because the cost of health care now is just out of control,” Rendell said. “Ten years ago in Pennsylvania, a family health plan for an employer costs $5,500. Today, it costs $11,500, and by 2016, over $25,000… Hiking taxes on people like myself and, I assume, you Neil, we wouldn't even be up to the tax rate that existed under Ronald Reagan."

"That's hardly a bragging point, Governor. That's like telling someone, ‘Oh, you have a long way to go before you're really screwed,’" Cavuto responded.

Rendell said, "The tax rate under Ronald Reagan's Presidency was much higher on rich people than it is today."

"But it also started out much higher, and he was going down. We're starting at still a relatively high level and going up," Cavuto said.

"I think we're starting at a level for rich people that's one of the lowest it's been in decades. And we’re going up slightly," Rendell countered.

Cavuto argued, "We're going from a top rate of 35%-45%... and between states… with these surtaxes on top of surtaxes, we're rapidly going back to those old levels."

"When President Clinton came in, he raised taxes on the rich," Rendell said.

"But he lowered all business taxes," Cavuto replied.

Rendell said, "We experienced tremendous growth after that."

At the end of the segment, Cavuto admitted, “You might be right.”

How often does a Fox News host say that to a Democratic guest?