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Fear looming over 'Taxmageddon'

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    Massive tax hikes set to take effect

  • Duration 4:43
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For Europe's financial crisis so -- concern about our own economy in part because of growing fears about what's being called tax -- -- Massive tax -- -- it again and beginning of next year.

Former -- financial advisor and Americans for Tax Reform president Grover Norquist joins us now to talk about it.

Robert welcome thanks for coming in today did you.

Let's talk about the so called taxed again so folks at home know what we mean having their number -- tax measure set to expire -- beginning of the year if congress doesn't act.

Yet this has happened before where the research and development tax credit lapses -- -- extended the Alternative Minimum Tax patch lapses in the extended.

The tax.

Cuts the bush tax cuts of 2001.

Have laps before and been extended.

For the first time all of these extensions.

Are slated to happen at one time and 56 days after the November election.

-- In the past they get kicked -- had -- because politicians who worried about the next election this time around 56 days after if Obama wins after he.

Wins reelection.

He just has to sit there like about monologue and all of these tax increases take -- -- the Alternative Minimum Tax originally put in that you know 155.

People.

We'll hit 31 million families.

Starting January 1 and then over the decade up to 55 million analyst.

The capital gains tax jumps from -- and up to 20% the top rate on personal.

Personal income taxes jumped from 35%.

Up to 39.

Up to 43 all on the same day so from.

35%.

Package to over 43%.

The tax on dividends which was brought down to fifteen jumps up to forty -- just about.

Triples so if you're invested in firms that.

A lot of dividends.

With the value of your stock when the tax on dividends goes up three times.

What happens to businesses with a capital gains.

-- and all of your personal investments.

It's a dramatic tax increase and add to that the -- -- minimum tax.

On top of the hitting 31 million -- It's not a big change its 500 billion dollars altogether it's 500 billion dollars in one year alone 2013.

Taken out of the economy.

It would take congressional action obviously to counteract a lot of what's coming there is a lot of cooperation on the hell right now you of course very well known for the tax pledge of encouraged.

A number of lawmakers to sign in which they -- that they won't raise taxes and they won't.

Cut out other tax credits or deductions without a match dollar for dollar.

In decreasing taxes elsewhere.

You're not and surprised by the heat these sometimes take over this and there are others out there who've been inside the plant senator Lindsey Graham a Republican said.

It may be time for us to back away from that and some measure to compromise so we can get something done.

What's wrong with that idea.

Well of course the advocates of higher spending Obama Reid and policy -- -- said why don't compromise and you raise taxes to pay for our spending.

And Republicans have been very good over the last three years and saying we're not gonna raise taxes to pay for your overspending.

We're gonna bring spending down.

Lindsey Graham said well -- might raise taxes to vote for more spending but he's kind of by himself on that.

Certainly the Republican House of Representatives made it very clear speaker Boehner just recently saying we're not raising taxes not -- Here's -- two futures one is the Republicans in the house putting together now past the next couple weeks abilities extend all of these.

Tax.

Reductions that lapse by one year why because if we elect -- Republican house Republican senate and president Romney.

We will take that year and do tax reform revenue neutral not a tax increase but revenue neutral.

Tax reform and passed the Ryan bill which bring spending down so we will bring spending down not raise taxes.

That's the future if the Republicans keep the house take four -- seats in the senate when the president.

If Obama's elected.

And yet still have -- Republican.

House and perhaps Republican senate.

He has said that he'll veto any effort to continue the law now might you want to continue some of those tax breaks you have to ask yourself.

For two years 20092000.

And he woke up every morning and didn't make any of those tax cuts permanent.

They like to bed at night.

The next day you look -- and -- they didn't make any of those tax cuts permanent.

For two years he could have on any given day extended some of them part of them only for.

Lower income people whatever.

He never did that why would you believe he actually wants to extend them for anybody.

Now we will wait and see there's a lot of work to be done on both sides of the aisle governor quest thank -- -- -- and -- could you.

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