Will Congress Tie Payroll Tax Cut to Keystone Pipeline?
Which would pump up economy more?
- Duration 8:47
- Date Dec 10, 2011
Which would pump up economy more?
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This transcript is automatically generated
The -- and -- is the payroll tax cuts Republican -- saying the keystone oil pipeline will pump out more jobs.
That's why they're tying it to their payroll tax cut bill but the president's threatening to veto that plan.
He says extending the cats will put more people to work.
The fight set to come to -- -- next week.
So who's got it right hi everybody I'm Brenda Buttner vets is bold and there.
He -- the bears this week Tobin Smith Jonas Max Ferris.
Along with small business owner and -- and to -- eight.
Todd shown burger from the black bay group and -- -- former senior advisor at the Treasury Department welcome everybody so I'm nearly -- Which we'll get more Americans working payroll tax -- So aren't that high -- this -- hard for anybody to figure out absolutely the pipeline to forget that tax cut a temporary and it's not gonna change -- certainly for small businesses.
And it zeppelin that -- put that much money at the bottom line for us to be able to -- actually.
Spur on the an appointment so had to -- the pipeline absolutely hands down.
Short and long term it's better and for that future broke let alone changing -- the -- to be able to bring us as an alternative here back to you ask for what do.
-- -- like those those payroll tax cut plan.
I didn't like the payroll tax cuts of tax cuts pay for themselves.
And look this pipeline.
It's a pipe dream it it's not gonna create the jobs and everybody says it's going to create.
The GOP is trying to make it out to be that this is an environmental argument.
That -- actually be able to pump in all this oil that oil sands into the Gulf of Mexico over grab a lot of people big -- -- for this fight.
But that is actually temporary -- because you're gonna be looking at a couple of jobs and that's it's gonna end and if anything it's not gonna help the overall economy because it's not gonna pop up a lot of oil supply.
It's gonna bring down gas prices it's -- -- -- This isn't what is Todd shot a one -- a -- I don't know I think he's right about agreeing with rotten little hello hello happened.
He's right -- tiny drop in the bucket vs the broader economic growth that we need.
This tax cut is gonna get mad at the minimum 110 billion dollars pumped into the economy.
This pipeline is talking about at the -- some six billion it to teeny tiny little drop.
And you know these jobs and really -- actually not permanent jobs a lot of them are temporary construction jobs.
So we need a much bigger broader -- -- even a number of jobs they're talking got 20000.
Even though is they're talking to those or work year so they might not one worked -- could comprise over Morton to workers the right number one job so it didn't even 20000.
-- -- -- -- In general tax cuts -- -- spectacular but at this stage we have to pay for them with offsetting tax increases so it kind of neutralizes the effect.
I'm all for tax cuts in a recession we're not a recession -- to keep extending along.
He's recessionary tax breaks that we got that are bankrupting Social Security which is where that money would go we already have the bush tax cuts extended we don't need further payroll tax -- -- at this stage -- the economy.
-- pay -- pipeline doesn't cost the government money that's the key difference at this point.
Okay and LA tell me come and political logic here.
If -- extending these Social Security -- rebates is what it what it is if that creates -- that what we -- next year is that gonna eliminate those jobs I mean you can't have it both ways -- -- -- one number -- -- -- creating an asset with private capital that's what XL pipeline is going to be at number three remember that although oil being displaced is oil that was coming from Venezuela.
You know we -- week or not the business of building jobs in Venezuela we should be in the business the building jobs in America.
You're right about that -- you're talking about a heavy sour variety and here's the problem though is that we use west Texas intermediate fuel here.
You're only -- -- pipe -- pump out that fuel when it turns into actual petroleum.
Out to maybe the east to West Coast it's a very small part of populations actually gonna get that take the gasoline.
But never -- below what it how many jobs would create do you say it Ilya.
You know I I still think the pipeline is an better long term and short term investment because it not only get -- Get the job growth but you're also gonna spur the other companies that are gonna support this project.
So you're get a small business is telling you get you get an an -- going a little bit.
The pay tax I'm telling you when you take a look at this Stephen I'm not I've got it when I look at the bottom line is not a lot of money there.
For me to give her credit they OK who now I'm gonna have you know cash -- -- my company no one not it's not enough it's not what the number one thing is we keep saying a small business people we need it's not the -- pat we need to read all.
But Boehner -- Boehner is coming out he's actually trying to say that this will he wants the pipeline -- that he's trying to use the environmental card here he's trying to carry that argument.
I'll pay a lost cause.
Yeah doesn't it lower.
Well gas prices -- -- doesn't that help the economy.
You know they could it's not going to be in the short term now that's get this thing -- week after remember here you know the payroll tax would be an immediate benefits starting in January a couple of weeks.
That what's coming -- to have a reason.
I don't well but getting rid of that it's gonna well first about senator Reid wants to bring it down even further but getting rid of it I don't have a contract -- facts coming to your point your right.
Getting rid of it it's gonna contracting economy some some economists are saying it could be as much as half a half a point -- -- GDP next here.
And when our estimates are only 8%.
For GDP growth next year -- four -- the half point.
If ever there was talking about not giving the -- -- -- to the employee or they're on now they're talking about only giving it to the employee east side of it to that defeats the whole purpose of what the thing with us today to help small business so that's happened both sides here they don't know what they're talking about how.
Did take it to Todd Todd you said it would have Paper itself the payroll tax.
Cut happy happy happy and -- -- just let them know you just said you're look at -- pay -- it could put in that tax cut in the hands FedEx or discretionary income.
Back and today employee back into the consumer it's gonna permit got to go out and spend that's what we want that's the best thing about that -- -- at this need.
-- -- -- -- Housing is already gonna go broke anyway in the -- that's the revenues few of those security it doesn't -- -- some already lowered to 1% magically able would have -- security the bottom line this is why it's a bad idea.
-- it has to be dealt -- a offsetting tax increase -- -- plan to raise it in five years higher than it currently was before it got lowered to pay port you can make a case may be in a recession but today.
It's a ridiculous plan has to be paid -- gonna defeat the purpose of the.
Susan said it best to have a gross domestic product right now sitting at 2% that's only going lower we are we could be headed back into another recession in the first quarter of next here somewhat a consumer to go out and spend money wanna give them a Hamas -- let's -- can't -- our little evidence.
We have made fifteen trillion dollar economy you're talking about a hundred billion using citizens number how could that possibly puts -- -- -- resides and you argue aren't sitting there making numbers up and that beautiful you know yards ahead.
And you are trying to tell me that you're gonna stick this -- through the middle of America you're gonna bring down the oil -- and you have a company like but -- that's been actually -- this stuff.
And that's gonna help the economy that's not gonna help but that's a short term boost that's -- any -- That might do some things for the first six months as payroll tax all of might be better for is that all of the ancillary products for instance there's still -- 6570%.
Has been -- the united -- -- another about 3000 -- a big companies all well paying -- you know it's intriguing is that.
Actually the -- biggest supporters of the pilot might happen to be the unions and they have it right this time and that's the first time I've ever agreement to tell.
Any -- to tell me.
Can you speak to this issue about that gas prices coming down is that helped the economy as well.
You don't know -- you know is it by the big gasoline oil prices are priced in the world it's not United States presented myself be the issue is is that as we take less oil in from other countries like Venezuela etc.
These Canadian firms that the actual firms are actually more owned by American shareholders and Canadian.
It is a net positive for our country economically.
Business wise and it makes very sound sad because of the fact that we're excluding oil from countries -- -- like -- very much.
You know what that spending that debt -- talking about though is.
It's only at the high and going to be six billion summit that's already been spent so when you're talking about is new construction jobs and manufacturing in the engineering and all that other of the -- -- -- They're really tiny they're tiny in comparison to -- -- to your reason your listen up here first of all the could be -- teens are even having had the DD treat everybody says that it put another thousand dollars in their pocket for families making 50000.
It's allegedly another 500 to but it.
Did you know he's our economy and all it is like to give the employee -- the actual bad but that's not -- another day when the accident they're there.
I thank that's got to be the last words.