Paul Volcker on Taxes, Larry Summers, and Business

Chairman of the President's Economic Recovery Advisory Board and Co-Chair of the International Economic Alliance Paul Volcker just spoke with FOX Business Network's David Asman; here is what he had to say… When asked about how businesses are worried about their taxes, Mr. Volcker said, “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. And let's see if we can't have a tax system that is more friendly to incentives than our current system.” Mr. Volcker was also asked to comment on the recent announcement that Larry Summers would be leaving the administration by the end of the year. When asked who might replace Mr. Summers, he noted, “I think what you want is somebody who to some extent, I don't want to belittle this, it's very important, a kind of honest and bringing to the President the views not only of people within the administration, but people outside the administration including in the business community. And getting somebody in there with the talent to do that I think is extremely important.” On the subject of the Obama administration being anti-business, he said, “I think the perception is wrong. I simply do not underrated what everyone thinks of President Obama and the political situation. He is not a wild-eyed leftist radical.” Volcker added,” It's ridiculous…Generally, they are worried about his positions on trade, but he hasn't done anything with trade. Had 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.”