Vice President Joe Biden says there's no broad benefit to the economy in extending tax cuts for the wealthy because they wouldn’t spend it anyway.
Tax cuts are better given to people "who are going to go out and spend it," Biden said during a meeting with small business owners Wednesday at a Washington pizza restaurant.
"They're going to come in and buy a pizza, they're going to go buy a car, they're going to pay their electric bill, they’re going to make a payment to send their kid to school, they're going to buy school clothes…They're the people who need the money."
By contrast, he said, it’s wrong to give tax cuts to "people making over a million bucks a year. …They're spending all they’re going to spend anyway. Giving somebody in that top percentage bracket, giving them another $250,000 tax cut, they’re not going to spend that. They're not going to stimulate the economy."
He said he did not begrudge the wealthy. "I'm glad they're super wealthy," he said. "I hope one of my grandkids makes that kind of money, so when he puts me in a home I get a window with a view."
The Obama administration wants to extend Bush era tax cuts now set to expire on Dec. 31 for people making less than $200,000 and households making less than $250,000. It proposes to let the tax cuts expire as scheduled for those making more than that.
"Our colleagues on the other side think we should extend the whole tax cut, to the people who are in the top 2 percent," he said.
"To extend those tax cuts costs $700 billion over 10 years at a time when we are worried about the economy, when long term we have to be worried about deficits," he said.
Biden said that 50 percent of those tax cuts would go to people with average incomes of $8.2 million, costing a total of $350 billion over 10 years.
He disputed Republican arguments that small businesses would be hurt all the tax cuts are not extended.
"Not 3 percent of the small businesses in America would benefit one single solitary penny from extending that …tax cut," he said. "So this is just a bunch of malarkey."