New taxes causing sticker shock for consumer?
Report: Soaring costs hitting middle class hard
- Duration 8:34
- Date May 5, 2012
Report: Soaring costs hitting middle class hard
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Tapped out of the store and now taxed out at the store cash strapped states -- local governments.
Slap -- higher taxes on consumer goods this week beer makers getting hit in New York in Chicago plans brewing for a soda tax.
And they're not alone are these hikes the biggest threat facing the middle class -- -- -- about AM -- -- sunny now welcome to cash in it.
Our -- -- -- -- this week Wayne Rogers Jonathan Hunt it Tracy parents John -- And back with us the proud new father is returning to protect -- -- congratulations to prison doors they so lock and -- of you.
Don't -- -- start with -- was questioning no classes basically getting taxed out.
-- absolutely Chris congratulations kids need -- -- like you but yes in the middle class is being taxed out you look at what's going on -- Illinois they raise the corporate tax rate.
But they exempt from the large corporations -- of people that are having to pay you are the small and medium -- -- -- exactly what happens with our national tax.
And so politicians don't have the will to pass what -- try to do at 13%.
State tax so they pass things that they can get past like a soda tax like a cigarette tax.
They don't pass a flaming contacts they passed a cheeseburger -- yes this adversely affect the math is the middle class and lower all.
Well I know if you look at their prices stake is -- seven point 3% Wayne Rogers ground beef up six point 7%.
Eighth place embers and jumper chickens everything's going higher and now bits plus tax you -- your sodas on your mayor everything else is that fair Wayne do you think.
-- is not a question of fairness of the question of the dead that a local.
You know constituencies that desperate for money states.
You think that the city of taleo California went bust.
You know of late today they can't find money and about the tobacco funds -- to -- -- the state settle for the tobacco companies.
All of those funds are running out to -- -- just spending more than that taking it.
It's a constant problem the federal government does it all governments do it they're doing the same thing the worst part about it though is that for example this -- doctor -- from the university Chicago.
Saying that this is a tax and he made it almost a racial thing way he said it's a form of social.
Just is so you -- the lure people because they would get more sugar on me that's outrageous is it that it's that it's a confession.
To a system that has nothing to do with the liberty and -- to do with quote.
And -- budget well.
You know -- on the other side of this argument those that support these types of taxes happening New York Chicago actually 33 states have this basically going on right now the beverage industry spent.
None of the 48 million dollars on marketing in 2010 -- they're trying a lot of that goes to kids so health experts say that we got to do something this is the way to do it.
Well you know I agree that the sugar Texas probably a good idea and you know the beer tax in New York.
Doesn't really concern me all that much because when you -- these things altogether.
There really pennies on the dollar.
And the real issue for middle class families is the fact -- their incomes have not gone up over the last ten years in fact they're worse off today than they work.
Ten years ago in of their incomes had risen -- we would expect they'd have about 8700.
More dollars per year in -- com and really that would make this tax conversation -- I agree with John you know -- this is certainly it's it's shocking to -- that -- since so much time figuring out how to.
-- little nickel and dime taxes to the middle class without really thinking about.
Tax fairness overall and making sure we tax people at all levels accordingly but -- really the true issue here sure -- Is that incomes have not gone up and that's what's really hurting middle class -- -- -- that it fair that point -- but at the same time in a Christmas appointment comes are going up but also these are additional I mean a lot of people milk cookies the basics.
That are being tax that included the sugary stuff is that really fair to the middle class they're the ones that are gonna get hurt in all have because that's -- we spend a welcome our money -- look.
These exorbitant out of corn be implanted which means nothing else is being planted right so that he's been have a shortage everywhere -- so these prices are continue to go up and up.
You gonna feel inflation at the food store for a very long time even though no one wants to admit that.
I think the bigger problem is and a penny tax.
Does not being spent properly when it's collected so don't even -- a penny from me weathered the -- -- soda or my cookie if you don't know what to do with it once you get it and that is the big problem.
And -- brought it up and this is what we are we're down to.
He's a -- got had a collect taxes and use them properly if they can't and don't collect them we'll tell you what John and then it may be the -- taxes being floated around here New York where you're at Chicago with energy drink sugary drinks I don't know what you're gonna do I get out of bed the morning Jonathan but I was.
Kennedy -- -- going to be very difficult Chara and you know the pennies add up actually people toggle with tax fairness I think a consumption based.
Flat tax is actually a good idea treats everyone fairly and equitably it simple and easy.
Easy to understand and most importantly it taxes consumption not production which of course is though the root of all wealth creation in this country.
But I mean that the -- -- on it this isn't tax fairness is basically social engineering trying to get people to drink less sugary drinks smokeless cigarettes and a pleasure.
I enjoy a beer and Allen and I don't I don't.
-- -- And I don't know what -- even a little early in the morning I don't know why government's role is to protect protect me from making my own decisions I think your best for my -- -- At this point I was expecting an energy drink and we got -- from Donovan today it would.
Don't blame them they -- do what what is -- about it lives happening at Chicago that the -- there way to actually made -- very interesting point is that look if you read this tax.
You raise prices you're actually gonna see a loss of sales loss of production loss of jobs of the Chicago area if you go after the energy drinks the sugar drinks and they're they're hold other -- with that.
Oil it's not a whole another way it's true I mean they if you're gonna tax something obviously if you -- tactic if you -- -- enough.
It'll go out of existence of cause it's gonna defeat job creation.
Any -- you tax something you raise the cost of it that's gonna defeat it.
But Donovan makes a good point did this is a bit of the idea of social engineering that this is again -- the Hulk.
Yet now as opposed to giving me the freedom to make my choice if I wanna drink a beer in his power like he's doing which maybe -- that some people.
Let's bring about a big -- and -- what it.
He wants so at what I really wants to use it right and fat content please point we saw this with cigarettes -- -- taxes on cigarettes and not stop smoking.
So what you meant is you're just taken away at discretionary income we -- is not just not infringing that a Diet Pepsi I love the diet that -- -- -- summer.
Then you're not gonna -- even by -- if you continued attacks and because my kids love them but when you try to do is take away my exit discretionary income -- put back.
The economy yeah -- -- -- about and -- said before is what they do with this tax money and you hit the nail on the head Providence, Rhode Island is bankrupt Detroit Michigan is bankrupt.
-- California is bankrupt yet caddies in -- get -- and -- trolling outside the city because they can't afford it.
These politicians are not balancing the budget and so they're looking instead of dealing with the big thing still -- with pensions.
-- Medicare cutting calls and making things more reasonable.
They're adding just simple taxes like sugar tax tobacco tax trying to cover up they're all in -- this and that's what this -- down.
Christian civic concern here is where does it stop -- -- whether it's beer sugar are fried chicken or whatever that I think the concern here is that they're gonna do is keep -- because again states.
In cities are are bankrupt their desperate for money they'll look at an extra -- million dollars in Boston alone if they add all these taxes you know.
We wrote a tiger is that I like sugar -- -- thriller really doesn't have anything to do with health and obesity it has to do with rebalancing a market that's become skewed.
Many sugar products sugary products -- -- with high fructose corn -- And something that is heavily subsidized from the federal government.
I'd like to see taxes go to offset an incredible subsequent battles -- -- black art and I get and that's what I get rid of subsidies why not let it lacks any man who actually.
Can't get a level that's let's let's let's do it a little trouble we are not gonna winner may go some Internet I don't I don't -- But Christian -- -- are going for economic freedom which is maybe have a first from what I've heard from me arguing for people making their own decisions -- government not.
Favoring certain types of -- certain types of foods certain kinds of activities by individuals I hope that's absolutely absolutely and this and this is to rebalance that.
This at this point from a guy is holding a beer at this hour.
Anyway kids who think that -- But I cannot -- up.