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Looming fiscal cliff sparking new fears from taxpayers

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    Should taxpayers be worried?

  • Duration 7:56
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It's not about red or blue it's all about being your range.

One month -- do you decide who gets to live in this house.

Washington still isn't getting its fiscal house in order hello everyone I'm Charles -- if for no Cavuto and box on top of the fiscal cliff that -- -- heading over.

Hoping they'll ask former debt commission co chairman Alan Simpson about before the first presidential debate.

One of the arguments is a matter who's elected.

They did a table lists for six months with -- reelected President Obama or newly elected president Romney.

Deal with it in the winter in -- -- -- way going so far is too.

-- reform the tax code everything you want.

Do you think that's what's gonna think that can happen regardless who's program because the markets are gonna begin to rattle -- -- it'll be like -- -- you now say look.

Why haven't they rattled the end because they're waiting for this to.

To -- I was waiting for that sequester when he signed the -- might not happen.

They can't they looking at America as some of the stupidest people on earth that if they are going to be -- -- over the cliff when you have a mindless sequester 600 billion not a defense.

600 billion with -- acts.

They're gonna say you're dysfunctional we want more money for our money.

And then inflation will pick him interest rates go up from the guy that gets hurt the -- -- be the little guy that everybody talks day and night.

But a funny thing happened on the way to the debate neither candidate give me a question on that this -- what do.

So that they are talking about it -- the time for taxpayers to start worrying about it division -- -- Willis adolescents DN Charlie Gasparino Jerry would make them.

My goodness this is a disaster what it is waiting to happen people have to get on the program and figure this out.

90% of Americans households here are gonna find some kind of new tax and that means 500 billion dollars is -- to be rates a 120 million households are -- be impacted.

And it's not just the expiration of the bush tax cuts there now -- -- taxes going into place is gonna kill investment.

Taxes on dividends go up 20%.

Long term capital gains -- go up 7% I'm telling you if they don't work on this the whole economy is gonna come skidding to a -- And bad guy you know the irony of course is that the the debates focused on the economy in this -- seem like question number one at least on Wall Street it's been what do you make of the I -- -- -- Charles I'm glad you run up the sequester is probably as bad ideas ever come out of congress and the White House.

The idea to me in particular of -- in defense budget which is 5% of the budget.

Equally wherever probably -- present the GD be very very very roughly.

Maybe more -- Portland.

Equally with domestic spending is just insanity it's suicide if they have mr.

Obama Osama bin Laden was still -- He would like us to be doing everyone would like us to be disarm unilaterally it makes no sense at all.

You know out of my I gotta say -- -- -- brought up Simpson Bowles even though you know that the question their grass.

It is somehow get the upper hand by at least acknowledging that something has to be done.

What about -- Simpson -- bled to the most charitable thing I can say about the fact that neither candidate is discussing the fiscal cliff is that there isn't much difference between them it sort of a pox on both their houses this is that bipartisan.

Mistaken a bipartisan problem I I don't disagree would -- Jerry and Ben said.

That this -- is a disaster in the waiting I just think there's a relatively low probability.

That the disaster will come to fruition and the politicians are content to wait until after the election to -- -- Charlie here's the thing though.

We should break up to make two points this is bad for the economy yes I love it but the broader market I don't know the markets I mean -- -- -- -- automatic cuts.

You have automatic taxes you have the deficit be dealt with in insane way but at least be dealt with.

I don't I'm not so sure the markets are gonna implode I mean that's that -- -- you don't think that you think the market to whistle passes ultimate whistle.

But at least they've got to say something is going hi how -- -- some.

I would look at hiring anyway it's gonna hurt the economy long term there's no doubt it's a Federal Reserve behind the market -- now.

Clinton about this notion that it if maybe they were stronger leadership from the White House we would have to take such a ham fisted approach in other words.

You know how come there can't be an elegant solution why does that have to be something well I can't get my way you can't get -- way -- is destroyed all.

I hated to -- and that goes back to obamacare they get -- incredibly high handed autocratic way.

The mr.

Obama -- through obamacare.

And -- -- -- that we're just knockdown did cooperate with you at all anymore.

Together administrative cooperation coming out of the White House about Barack Obama -- I may all of this would not of happened.

-- I think that sort of I think that's sort of thus is silly if you'll forgive me bent finger pointing I mean.

I'm gonna go ahead and criticize the congressman to criticize the administration Charles you're absolutely right.

We need leadership on this issue we haven't -- it got -- leadership the politicians are waiting for the crisis but yet we donors.

Remember -- a February just glossing over that the fact that Simpson Bowles was bipartisan.

Right and the president.

Look the all the way and and not even as a starting point was it.

You can criticize Paul Ryan for not agreeing with -- -- balls -- -- him that I agree with you but the because of it was a starting point and at least Paul Ryan put his own plan -- President Obama has abdicated all sorts and he's not laid like this much on this issue.

-- confidence post election no matter how it shakes out somehow these guys will get their act together.

I don't think I'm not convince me -- I -- usually a debate you'll look do you really think you look at their track record if you look at their track record.

What you see is an unwillingness let's not bad.

We have a prison would not did you see the debate I mean one of the most absurd things about that the -- Is he really had no clue about some of the basics of this economy that's right that is not someone that is gonna deal with the -- familiar.

Just yeah.

I wanna go to bed for a second because -- -- -- the one on the panel whose most talked about a balanced approach to this is there.

They're very elegant solution -- -- one out there were everyone takes a little bit of pain but we don't go over that proverbial up fiscal clip from once.

Should be worried about.

I think I and -- -- people are gonna take a lot of pain and and and -- -- -- that we deserve and we are attacks are just too low.

We need -- higher tax on mean do we need jobs.

They're not designed to be a shortage of capital is -- gavel the world as does.

A walk -- got -- Jason Clark that's not the problem are.

-- -- is not is not it is not -- to happen did that taxes or too low cost or not.

Because if they were lower we get more jobs and you get more revenue that that is that is -- that is exactly what we need -- And let me -- is that you raise taxes we're going back to double -- -- guaranteed absolutely I couldn't agree with that why -- it definitely gets it right over -- the deficit is bigger faxes.

Productivity.

We've we've got -- degradation.

Galas and Adam can you break this what do you think -- -- you -- -- -- the pistol club out of we have rested.

Higher taxes lowered taxes.

We won't have a sequester for more than a few days I could see it happening but it won't last -- along.

What we have to have higher taxes.

Goes right.

And I we will learn a lot right now we don't get digital form on the -- and we will have a double dip recession we may have been there anyway.

All right I tell you what guys we may need to have a point have a for a couple days but I got to tell you Charlie the thing the only reason whatever for a couple days the markets would react if this thing started her in the market why -- -- -- -- that is why -- the markets react if you're gonna what is the newsletter.

It does is there to say -- -- way to react to last year when we talk about all of that was available that was the full big -- saying I think it'll -- spending Charlie.

We -- -- the economy -- everyone made great.

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