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Mike thanks very much let's bring in an expert -- -- break down the payroll tax cut battle.
What it means for all of us the associated associate editor of Barron's financial magazine.
Mike's -- -- -- was -- of course is owned by the parent company of our network.
All politics pretty much all politics all of it.
It's actually really continuation of the debate we've been happening right if you want tax cuts how do you pay for them.
You have -- deficit hawks who are gonna be you know digging in their heels.
And saying that even though this is very similar to you know the idea of extending the bush tax cuts which got done.
The idea of a you don't -- -- raise taxes in a fragile economy.
Still you want -- kind of emphasize.
Stance and that right now is.
You have to have them so called paid for by deficit by -- spending cuts well.
This went through the senate they couldn't get the year deal right and then Republicans to the tune of 80% agreed to bulbs to month extension so that you get it done after that.
Everybody was -- that in the house and then all of a sudden for political reasons.
The house said no we got to have a year knowing the senate is already gone and they can't get a conference what are they doing.
It's called minority rules read and insisted they -- as well faction that really is actually yours absolute.
While Tea Party influence legislators right they're absolutist in their sense that we have to actually attacked the spending part.
Now the interesting thing is you know it's -- it's unclear to a lot of observers whether Democrats are very upset about this to a course of events because.
It does maybe give them ammunition going into the election -- -- -- -- Look this is this is -- an effective tax increase at least in -- short term basis for every working American.
And that can't be good.
Think that if this is working for president the president Obama's poll numbers his approval ratings are up and his disapproval ratings are down Republicans must -- -- that.
Presumably sell and you know it's interesting because for -- while the idea that the president was willing to push for compromise -- middle ground -- -- a weakness at least from his party is basically now all of a sudden it may seem like it's a reasonable party -- it's unclear how this all plays out and I wouldn't say that this is gonna be some kind of cataclysmic economic event right a thousand bucks a year it's an all out coach.
For the average earner is a big deal but it's twenty bucks a week it is symbolic the more you see this stuff fought out in public and basically people.
Fighting out the idea that we can't afford the things that we're spending on right now.
I don't think is very good.
For the out for the confidence of the consumer and I wonder if one side or the other might make the argument this is the last time you -- -- take money out of the cash flow mechanism because cash needs to flow without a doubt right now look if it's not.
Funded by spending cuts this payroll tax.
Situation right now is basically funded by a government that's able to borrow.
At under 2% for ten years OK it's not the worst thing in the world.
To kind of keep the cash flowing.
Threats -- say a fragile economy prediction.
Don't know I -- I think by the way doesn't really matter much if it's two months it doesn't really matter it's true -- -- -- -- thank you very much new video from the Korean Peninsula.
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