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Judge Napolitano: It’s a new low, Republicans have now joined Democrats in beating up on the most productive people in our society. Yes, you heard me correctly, Republicans are attacking millionaires; Jon Bon Jovi, Bruce Springsteen, Quincy Jones, Ted Turner, not for their political views, but for the way they get tax breaks. This, as super-committee Republicans waver on their fiscal conservative stance in favor of a tax hike. Here with insights is a man who will never compromise his fiscal conservatism, a quality that has him surging in polls. In a recent poll, Texan Republican Congressman Ron Paul is tied for first place with Mitt Romney, Newt Gingrich and Herman Cain. Will his hoards of devotes in the great state of Iowa propel him to victory in those caucuses in less than two months. Congressman Paul, it’s always a pleasure, welcome back to Freedom Watch.
Ron Paul: Thank you, Judge.
Judge Napolitano: Are you surprised that Republican senators are saying what they’re saying? I don’t expect you to jump on a particular senator, but Senator Coburn says, “We got to stop these rich people from taking advantage of loopholes that we have written”. And Senator Pat Toomey, who once had a reputation for being as faithful to the free market as you have when he was the President of the Club for Growth, now saying, “Well, on the super-committee we might accept $1.5 in cuts for every dollar in tax hikes”. Tax hikes? Where does he come up with that?
Ron Paul: It’s never worked before and it won’t work again. And the real confusion comes from the fact that there are some rich people who get benefits from government, they work with the Federal Reserve and they get their bailouts; that’s one thing. But if you’re productive, taxing people who are productive is the worst thing that we could do. One of the reasons that they get confused on this is they don’t understand that all capital comes from savings; work effort and production, and then savings. We’ve been taught for the past 4 years that capital comes out of a printing press and out of a computer, so that’s where the confusion comes from. But we should not tax success, there’s no way that’s going to be helpful.
Judge Napolitano: Well, what do the Republicans hope to gain from this? I mean, for example, do your sources tell you that the super-committee – which you and I believe is unconstitutional and shouldn’t be there in the first place, but that’s what we’re stuck with for now – is hopelessly deadlocked and so they want to win the PR value since they’re not going to get legislation out of this committee which the Republicans can endorse?
Ron Paul: It’s all a PR battle and it’s all a struggle for power, maintaining power, and not cleaning up the mess. The one problem that the conservatives is have, is they won’t accept the fact that maybe we spend too much money overseas, maybe our foreign policy needs to be adjusted, they will not contemplate that in any way. So they want to tinker around the edges and come up with tax gimmicks and not admit the truth. And on the other side, including many Republicans, they don’t want to touch any bailouts either, you know, the entitlement system. And that’s where our problem is, the American people are part of the problem because they’ve been taught to be dependent on government programs. So we as a country have to decide whether we want a government that’s going to police the world and take care of us from cradle to grave. And if we want it to happen, then we’re going to have total bankruptcy in this country, and we’ll end up with runaway inflation, that’s how the debt will be liquidated. And we’re on the verge of moving into that area, and it can go quickly, that’s something people don’t realize. Sometimes you drift along, but when it comes, it comes rather quickly.
Judge Napolitano: If you were the President, what would you be pushing on the super-committee? Well, we wouldn’t have a super-committee if you were President, but if you were the President, what would you be urging the Congress to do right now in this present, unfortunate, unhappy recession in which we find ourselves?
Ron Paul: Quit lying to themselves and look at my proposal. I said in the first year, if our country gets serious, we can cut a trillion dollars out of it, and it would help us. And I used the example of after World War II, when we cut spending by 60% and we cut taxes by 30% and 10 million people came home, and guess what, the depression finally ended. So I would say we should look at that example and not this whole idea that the Keynesian argument is that we’re in a recession because there’s not enough spending. So government is supposed to spend, and people who have no credit left are supposed to go out and get a credit card and they’ll spend, and that’s how you end a recession: it’s a completely false idea.
Judge Napolitano: The first significant event in the Republican primary/caucus season is the Iowa caucuses, and you are now tied in the latest Bloomberg poll with Mitt Romney, Newt Gingrich and Herman Cain. Is the media going to start mentioning the fact that you’re up there in first place with them in this very significant poll, Congressman Paul?
Ron Paul: Well, probably not, I’m not expecting too much from them. But I’ll tell you what, the more they ignore me, the more attention we get, because they see it is so unfair. So if this continues, they won’t be able to stop us. And the one thing I’m pleased with in the poll, although we’re really tied with three other people, is the fact that when we get supporters, when supporters come in to our camp, they usually never leave. But if you look at the past six months, they come and go with the other candidates. So there’s reason for us to be very optimistic.
Judge Napolitano: Got it. Thanks for joining us, we’ll see you again soon.
Ron Paul: Thank you, Judge.
Judge Napolitano: Where did one hundred million of your tax dollars …