Recovery fears mount as tax hikes loom
Tax bomb ticking?
- Duration 8:31
- Date Apr 14, 2012
Tax bomb ticking?
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Yes since I ever -- weekend new signs small business owners Bob May.
Big companies still warning and stocks suffering the worst week of the year.
It's all because of the massive tax box that's stitching and looming over all of us hi everyone I'm -- -- that -- golden -- let's Iraq I do it.
Yeah yeah we.
We got Tobin Smith Jonas Max Ferris Gary ethernet.
Along with a million and tenacity and -- -- Fitch welcome everybody Gary do you say think this tax season is taxing -- what.
You know brand I think it 2013.
We're gonna have to all moved to the Cayman Islands going to be a lot better here there than it is here because.
You know Brenda I Heritage Foundation called 2013 tax -- dead in and here's why.
The average household here in the US gonna see tax increases up 3800.
Dollars and you know that comes from the expiration of the bush won in -- tax.
Tax cuts the expiration of the payroll tax cuts.
Obama care increases and all by the way you know I heard Obama's -- about this Buffett tax so maybe we'll get that also.
And you know Brenda here's -- here's the worst part the did primary.
Focus on these tax is going to be the middle and low income households because that's where.
The bulk of the bush tax cuts went -- It 2013 -- -- be very good year for anyone and the economy Brenda.
Okay and -- you are a small business owner you do the hiring what is this doing for your confidence and for your plans for the future.
I have an incompetent along at a point now I know -- to -- conference anymore.
Well I mean basically when I pulled the small business owners and myself we Philly indentured service at as administrators -- the the government there's so much administration now that we don't even know where to Begin in fact that you would take our attention.
Down into that level of massive amounts of paperwork.
And then ignore what we keep saying will become the -- as I would love to see what the numbers are gonna be on how many people are filing extensions right now this weekend.
Waiting to see what's really going to happen because how the world we really -- -- be able to file.
Well that's the fun of uncertainty does have an impact as a -- on consumer confidence and all the rest are you worried.
Now I'm not I mean and this is such baloney I mean there is no chance.
And that we are going back to you.
The big bad Clinton Gingrich tax cut I'm not afraid of that particularly there is no chance even a democratic congress would pass.
You know it's -- just return to the old days -- probably gonna sneak up very slowly.
The real problem with the economy the reason -- all those companies are hoarding money and small businesses are not doing his -- -- and people are upset about the economy.
Is twelve point seven million unemployed people.
We're not doing enough to put those people back to work.
We're not doing enough to juice the economy.
That's what's got people nervous well there's no chance we're gonna go to the kind of Heritage Foundation tax bomb it's more like attacks -- How can you -- -- business owners are are any weight.
It even be -- up be playing and -- that that we're trapped underneath the individual tax form.
This is -- -- -- -- now for.
I came 10 -- -- we cannot be trapped underneath the individual tax form in order for -- be able to prepare and start jobs and and hiring.
I think it's amazing that you are trying to speak for millions of business I'm a business owner you certainly don't -- for me I don't think you know what you're talking up.
What you know what I wanted to put it went a little more -- -- okay.
So I just want to point out one thing you said there Democrats would not even and pushed tax hikes.
There's no need to push any tax hikes this is just tell us.
Tax cuts that will expire.
This has nothing to do nobody have to do and it.
A chance there there is no chance of the bush tax cuts.
There will be congressional action they're working on that now there will be well.
Yeah -- -- -- you know probably just he just.
Take us down big deal all right OK tell you not -- big DL.
-- -- -- A hot look -- let's look at the stock market for a second.
When would you have capital gains Zeller is that the the tax you pay your your prophet.
Go up 45%.
Then -- outlook let's just talk about the stock market because the wealth effect has been very strong here in the last six the last thing I.
-- that to basically get patted him on investment profits capital.
-- -- look at it slip -- did not ask god had.
-- -- -- aren't so so that that the issue here is that if you're gonna choose to sell or own a stock into next year you're gonna pick up forty per cent higher tax on your prophet.
You if you wait till next year so what human nature's going to be -- we're gonna have a lot of selling.
And we're at a at a point in the market we're sort of a back support level and I can see the market down 50% picture and that has -- -- back.
-- -- -- -- -- -- -- -- -- All the logos all those come resort and -- he showed none of them are looking at tax increases ever in fact those corporations are actually probably get their taxes cut in next few years that's almost guaranteed on some level they're certainly not gonna get a higher price let's get that out the table popular.
About individuals and businesses rated pain in the middle income taxes.
Look we have running running a stimulus economy for so long people forget what taxes they used to pay its two presidents now who have.
Increased the stimulus as if we're in depression.
For going on many years now and we've forgotten these are just going back to -- that -- healthy economy can handle.
-- president has caught anything to pay for these tax cuts so we as a nation have to return.
To these tax rates and we -- the lumping it ends gonna make you miserable you don't remember.
I -- not right yeah.
All -- -- get a kick the administration process spot tax agreement attacks.
Make it easy for us to be able to file and not take weeks and my business we're gonna get the paperwork -- -- issue though that you said.
You the words you use -- that was a healthy.
Gary is that where we are right now can we know and we know saying can we -- -- to an end to these tax cuts.
Act absolutely not and for all this stimulus that the government has done and -- units that -- mentioned stimulus.
As if we need to do more the whole purpose of the stimulus was to get the economy moving into.
Really that the headline feature was to get unemployment.
8% now unemployment is high error.
That when Obama took office in the stimulus started so we we spent.
All this money we're taxing the citizens were spending even more that we're taking and we're seeing nothing for it and as I start out we're gonna see more taxes.
Next here -- -- all that's -- and a great -- roaring economy like we had in the in the late ninety's we don't have that now.
To have equally good if we get back out well yeah I mean it that he you have to do that you can't take all the stoppages -- single -- -- to -- at a macro look here.
Add that you know the sort of but the margin -- shareholder there's a person who is if as is more confident to buy shares the got a small businessperson who's more confident.
By inventory except Iraq.
It is is is is all that's little bubble you put some a little too hard and -- -- that we just don't have to guarantees point we don't have the momentum in the economy that's growing fast enough to be able to absorb you know another push in the back.
We got -- -- with that because he was saying that it's just going back to -- no harm.
Look at -- we'd love to keep -- taxes forever but as you can see by the ongoing deficits we are not cutting what it takes to cut to pay for it.
Therefore we have to return to a tax code they can balance a budget I will say it's not just a bubble yet there was -- -- problem lies but this country's grown for decades.
Through much higher tax rates -- about to get now -- higher than they are now on their big boom for everybody now.
But in the -- in this country grew very well do much higher tax regimes we can live through this thing get this we often get I would add zero percentage of rate forever.
America is a strong country -- is -- to get back to reality at some point.
So so basically am Gary -- he's saying that that we are kind of becoming an entitlement.
Well yeah I mean that does get the Johns is on its -- what philosophy you have if you think.
The government should become bigger and bigger and bigger and it certainly will under.
Any kind of budget that the Obama administration has talked about it's gonna be bigger and bigger and take care of all of us everything else but that we might as well -- -- crop.
Without the good food.