Tax hike threat holding back job creation?
Unemployment falling; job creation still stalling
- Duration 8:00
- Date Oct 6, 2012
Unemployment falling; job creation still stalling
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Employment rate falling but job creation still stalling.
15 employer saying the outcome of the presidential election will impact their hiring plans for next here.
And someone here says this is wrong.
That phrase shall we do.
Obama and Biden want to raise taxes by a trillion dollars and guess what.
Yes we do in one regard.
We want to let that trillion dollar tax credit expired -- the middle class doesn't have to bear the burden.
Of all that money going to the super wealthy.
So our promises of massive tax hikes taxing that jobs market hi every one.
I'm Brenda -- bit is bold and -- -- they bulls -- this week.
Gary B Smith Tobin Smith Jonas Max Ferris along with Larry Glazer and Julian Epstein welcome everybody okay Larry.
Talk of future tax hikes holding back the job recovery.
That's right that's right -- -- well you know.
Certainly -- consumers that are -- did that happen borrowing tape and they may be -- a little more confident these days but -- employers don't share that optimism at all and the reason I share is because they're worried about what's ahead.
But what's ahead our future tax increases for small business -- you know these are people -- don't -- -- -- dry cleaners and didn't -- -- they're not fat cats they're not millionaires and -- -- these -- average working people and they are very concerned about the current environment.
It looked the national federation independent business owners.
The record number of people think about bad time to start a business at a bad time to hire people.
That is not optimistic that's not confident that's not really inspired jobs in this country which is exactly what we need right now okay clearly Larry if not excited about this -- what do you say.
Stats -- plan I don't I don't know -- Larry screaming at everybody I mean look there at the numbers here yesterday in the job numbers are very very good.
Want to below 8% it's a good sign in vindication that the Obama economic recovery is working.
Now secondly I think the fact that many businesses want to.
Hold their fire until after the election is -- because what businesses say more than anything else of two things they wanna see is one they wanna see the partisan infighting stop.
That -- to the parties come together to get something done for the American people.
And to the biggest thing businesses are worried about today frankly is not taxes is that lack of consumers buying things so.
You know I think that most people believe right now most political experts believe that Obama's gonna win this election and he's gonna win with a decisive mandate that's the -- the Electoral College looks right now.
If that happens I think the message goes the conservatives in the congress that they have to work with Obama.
Rather than to be obstructionists and I think frankly on taxes.
Nobody wants to see a change in the tax what -- anyone's taxes -- why weren't fragile economy but at the end of the day when it comes -- -- cutting the debt.
If you don't touch the bush tax increases for the 1% then you have to raise taxes on the middle class which is a bad bad bad economic.
OK after debate polls are tightening but -- -- we its plan which candidate.
If he wins will will basically bring jobs recovery back.
Well it it really is the Ronnie pilots just focus on the taxes issue I I always a -- that those on the left sort of miss this idea.
That if you drop the -- all right Miller is the point down to 20% which essentially what Ron he's talking about.
-- people who make income.
Actually there -- taxes don't go down in only one away.
If they make more income and that -- civilization to make more income could you're not given 35% but back to the government what we lower marginal tax rates we get more output from the people who are the output part of our society.
If you believe that we need some tax increases in the long run but in the short run what can get jobs maybe -- -- an accounting course itself.
You know there's nothing you can do to the tax code -- isn't gonna -- the job market on some level lower the market already out.
When you win for him when you say Romney wants to reduce -- which is great lower the rates and remove the -- listen to remove the biggest ducks in the mortgage deduction.
If you're -- home builder do you think you're gonna hire more people if they remove the mortgage deduction became less able to buy -- house probably not.
So the work you hit the tax bracket -- you're gonna bring in net new revenue the government which I believe we need anybody was in line is -- we're gonna -- not gonna cut enough.
The -- gonna hurt the job market now specifically if you hit the high end like -- -- only want to do which isn't going to be enough but if let's say they just did that.
Yes that's that's a tax on success when you tax people in the middle that's the cost of hiring -- -- actually could lead to less time because.
I think he does not worker of his taxes go up did all this and you got to -- the more -- -- that tax cost.
If your success level middle -- booking the profits when -- -- your profits it's not a cost of hiring so it could in theory do more damage to make the tax burden -- don't -- employee V dot acre level but the job creator level -- not however I don't -- every tax increase -- the job market on some level.
Okay Gary B Vice President Biden that made very clear that there's going to be a trillion dollar -- -- high 82 what does that.
Due to job creation too.
The job recovering if you can call -- that.
Now -- I'll try to be -- is the biggest possible it's gonna really be harmful to job creation looked a lot of this.
Tax increase would go to those super rich are super wealthy as Vice President Biden.
But what those people really are as Larry pointed out in a right at the top of this segment is entrepreneur awards and -- the one sure the most successful.
-- for doors -- about that that 3%.
Of that total -- -- -- -- Brack and then three.
-- successful brand is because.
They want to generally make a lot of money they wanna grow their business they want a process where they went how big homes.
I'm fine -- all that that's fantastic but.
If you put -- higher taxes on that I.
I scratch my head and think he is there are those people gonna have a bigger and set up to grow their businesses are small instead of a -- the government let's just go whacky is gonna take 70%.
Of my of my income I'm gonna be sitting on the sidelines and you know.
Not so sure what grow business anymore because it's just not worth about the pace seven cents on the dollar to the government -- -- -- -- -- -- brilliant and -- was.
Back and our focus -- of that 3% that Gary's talking about they probably employed somewhere between 1210 to 12% of all US workers so we're talking about.
A relatively small part of the workforce that's point one point to -- Taxes right down to the Obama administration -- at 15% of GDP that's the lowest they've been in sixty years.
So if everyone on the show believes that the answer to all of our economic problems.
Is lowering the taxes than you should vote for Obama because he's given us the lowest taxes that they've been well well I don't.
Okay let me that you're still well hold on Larry and I wanna change that overall tax burden Romney wants to keep -- a -- percent a good architecture.
-- -- and I think you miss a poignant point -- it did -- look it's not just.
The existing small businesses new business formation is at a record -- went to the Census Bureau right now and if you look small businesses account for roughly 50% of GDP in this country and roughly 50% a private sector employment -- -- numbers are much greater -- you're giving credit for you know I think this tax issue Smallville this is our.
Our faculty -- where you're and you're contemplating things the small businesses that would be affected by that one person that increase -- that very top level that above 250 level.
Represent about ten to 12% of work let's OK wait -- it -- -- telling you you disagree with that number.
Well the actual number is above relative to the top 3% -- let's say 50% of of -- number.
That's not the point.
The point is is that Burton Group -- looking to add jobs were looking to grow businesses and what you do is -- substitute when you're marginal rate goes up I'm sorry when your marginal rate goes up the next dot percent of dark that you just withhold or you get rid of one person or ten people or 500 people to make a difference and that's the part in behavior that we know what happens well and it's happen every time but would that I can't write for -- that has to be the last -- excellent -- they give.