MSNBC "The Ed Show" - Transcript: Jobs and Tax Loopholes

Interview

SCHULTZ: So this means that Democrats have already offered more cuts
than Republicans have offered up new revenue.

Now, keep in mind when we talk about tax increases, this most recent
fiscal cliff that we went through, that was an expiration of legislation
that was on the books. That`s what that was. We went back to the old
rates. There is no increase beyond that.

But keep in mind, for every $7 in cuts, there has only been $3 in
revenue. The solution for more money -- well, they`re out there without
raising taxes.

And here is what we can do. We can end $4 billion to $5 billion a
year in big oil subsidies. These record profit oil companies, do they need
your tax dollars? I don`t think so.

We can close corporate tax loopholes. A lot of talk about that, but
not a whole lot of action, you know? They kind of get writers cramp when
they start talking about that.

The carried interest loophole can be eliminated.

Also, Congress can block the use of offshore tax havens. There is
legislation that is going to be on the table that`s going to deal with
that. How many takers from the Republicans are going to have?

And then there`s Wall Street traders. You know what they can do?

They can pay a fair transaction tax. It would generate billions of
dollars.

Now, following the State of the Union address, President Obama will
spend three days pushing his economic message on the road. He has to do
it, because he knows he has to have the public behind him.

The president is doing the right thing by fighting these good fights.

The country cannot afford the unnecessary damage from these cuts. I mean,
you and I have paid for this economic recovery with a big stimulus package.
And all along, the Republicans have said, no, it`s not the right thing
to do. Now this is their time to spoil all of that.

Thirty-plus months of private sector job growth. We`re headed in the
right direction. But this sequester is their very point in time in
economic history during the Obama years where they could deep six a lot of
progress.

Get your cell phones out. I want to know what you think.

Tonight`s question: will Republicans drive our economy into another
recession? Text A for yes, text B for now to 67622. You can always go to
our blog at Ed.MSNBC.com. We`ll bring you the results later on in the
show.

Expert opinion on this tonight. Let`s turn to Iowa Senator Tom
Harkin.

Senator, good to have you with us tonight.

SEN. TOM HARKIN (D), IOWA: Hey. Good to be back with you, Ed.

SCHULTZ: I guess we`re going to let you go home after 30 years. I
don`t like it, but I guess that`s just the way it is. I just -- I
appreciate you so much what you`ve done. You`re a tell-it-like-it-is kind
of guy.

What needs to happen, Tom, in order to stop these cuts from taking
place?

HARKIN: Well, first of all, Ed, I thought your introduction laid it
out very clearly. What I want to hear from the president tomorrow night is
a pro-growth, pro-jobs rebuild the middle class kind of speech. He needs
to lay it on the line, that we need to invest in our country and rebuilding
jobs and rebuilding the middle class.

Now, you laid out some of this stuff. You know, when you hear the
Republicans talk, Ed, about we got to cut this, we got to cut this, we got
to cut this, it`s almost like they`re saying we`re poor. The United
States, we`re poor, we`re broke.

The fact is, Ed, we are the richest nation in the history of the
world. We are the richest nation today. We have the highest per capita
income of any industrialized country.

So you have to ask the question, if we`re so rich, why are we so
broke? The reason is we have a misallocation of money, of capital. Too
much has gone into fewer and fewer hands and to large corporations.
The Republicans want to keep that going. I mean, you gave one
example, offshoring, for example.

Right now, look at it this way, Ed. Company A builds a new plant
overseas. Guess what? They get a tax deduction for building that plant
overseas. They hire workers over there. They get a tax deduction for
that. All their corporations overseas, tax deductible. But all the
profits they make, no taxes.

SCHULTZ: It`s amazing.

HARKIN: That`s not fair.

SCHULTZ: No, it`s not fair.

HARKIN: That`s not fair.

SCHULTZ: It is not fair. And the president needs to address that, I
agree with you.

HARKIN: He does.

SCHULTZ: We talked about solutions to gather new revenue. One of
those solutions is a transaction tax on high-speed trading on Wall Street.

HARKIN: Yes.

SCHULTZ: You believe this will work?

HARKIN: I do, Ed. I`ve been pushing it for a long time. And quite
frankly, I don`t know if you saw recently, the European Union just went
that way. And all the major nations in Europe now are going to have a
transaction tax, which is actually three times as large as what we`re
proposing in this country.

SCHULTZ: Yes. Senator, Nancy Pelosi has said over on the House side
that raising the Medicare eligibility age is not a viable solution. Today,
White House press secretary Jay Carney said it`s off the table.

Do you think there is enough political will amongst the Democrats
collectively to protect the big three?

HARKIN: Well, I sure hope so, Ed. You know, this is a contract that
we`ve made with past generations and with future generations. There is no
reason to raise the retirement age whatsoever. There are other ways of
making sure that Social Security and Medicare work, like maybe cutting down
on some of the huge profits that the drug companies are making off some of
the drugs that we get in Medicare.

How about that for an approach?

SCHULTZ: Sure.

HARKIN: That could sure help.

SCHULTZ: Senator Tom Harkin, great to have you with us tonight. I
appreciate your time tonight on THE ED SHOW. Keep up the fight, my friend.

HARKIN: Thanks.

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