Half of U.S. adults say fiscal cliff to impact purchases
Shoppers and COs spending less as fiscal cliff nears
- Duration 9:07
- Date Nov 24, 2012
Shoppers and COs spending less as fiscal cliff nears
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It's ready to go fiscal cliff diving apparently a lot of businesses and shoppers already afraid it'll fall tell everybody I'm Charles man if for no good -- -- And what the holiday shopping season under way a lot of consumers are saying no way more than half saying -- uncertainty around the fiscal cliff will impact your spending.
And a new report saying job creators of cutting back on spending fearing lawmakers won't be able to cut a deal.
Bad deal for the economy well -- -- based -- data medallion Charlie Gasparino longer.
Julian Epstein and Gary count on Gary -- wanna start with -- bad bill for all of us.
Of course -- business investment was already down.
Last quarter over 1%.
And the word -- certainty just pervades the air.
And it's business it's consumer about Philanthropic organizations that don't even know what kind of write -- people gonna get if they give to charity next year.
The longer this goes this one of the worst and of course the outcome probably gonna be even more war says taxes are gonna go up -- of course they'll be no spending cuts.
-- -- it does sound ominous -- you have someone who reads the Wall Street Journal.
It's creeping into it every day they ever -- lexicon every time you pick up the newspaper or -- Watson is the fiscal cliff the fiscal cliff.
You know could be -- the us did I don't know the intimidation factor -- -- actually be worse than actually going over the cliff.
I think it's a brilliant playing Charles everywhere and over the cliff for a few months the -- would not be that enormous but uncertainty is a very bad word.
Fear is a really really really bad -- And these are the words that I governor in the economy today and it's imperative the -- -- -- immigrants.
But they're all arms all in the finding compromise absolutely imperative that you we think about -- -- I think if you look at the look you cannot dismiss this particularly if you're on the left as some thing as hocus pocus and it's Fairmont great.
-- you can look at the numbers bear it out you look at the list of companies they're pulling back spending of some of the biggest names in the United States.
Whether it's a Wal-Mart afford at Disney you name it.
And no company is going to commit new money.
Two new jobs if they don't know right what's gonna happen in a matter of weeks -- you're seeing the same thing with -- It's early and this is the kind of spending that has long term ram and by the way and -- building factories and up buying buildings and this has long term -- to have -- and I think we should make -- we we should make appointed these companies are not cutting back because of the fiscal cliff.
Falling now they are cutting back because -- what they fear from President Obama.
Getting his way in terms of higher taxes in terms of higher dividend taxes higher taxes and just about every piece to the economy and -- -- -- -- and don't believe me go out there and talk -- they started cutting back.
Wait before they start -- -- we wanna take this guy at -- -- and this is the and is the from the fiscal cliff is really bad.
But the solution offer by pres Obama of massive taxes is not that good.
-- what do you make of that that this is just the pandora's box this is just the beginning.
The fiscal -- advanced point maybe could have a short term impact but ultimately the trend of higher taxes -- Charlie point to Charlie's point.
It's what businesses are really afraid of I I totally disagree that I think the -- of businesses.
Has shown that to be wrong and I talked mostly what I -- business later oh what -- -- well I finish the point Charlie just said Sarah image to point out about this will give us all the tell -- that I think businesses I think businesses.
Are concerned mostly about whether consumers' are gonna spend.
Or not that's that was broken heart attack and I think -- for the fiscal cliff now I don't think that's what it is and I think that's for the fiscal quipped you know anybody who's very close attention.
Charlie honestly we can have a much more intelligent conversation and it's not good -- great finish so I I think that as for the fiscal cliff.
I think most people that are watching this thing closely believe that there will be a deal why.
Because on taxes I think -- Republicans agree that they have to give somewhat right now spending is that that taxes -- 15% of GDP right now.
It's a -- as they've been in fifty years.
Even the most right wing Republican says it's spending should be cut brought down only to 20% he's now.
That's what I think -- point is that.
-- minister Ali -- that's because that -- -- Gary -- is that there's a huge opportunity for conservatives here.
Democrats want -- entitlement reform they want spending report because we realize if we don't get it entitlements inserts on the -- are going to be served.
7% of -- they're okay let me -- -- -- -- every -- because listen I don't want this to be.
You guys are debating the left and right side of -- I think right now we're talking about a lot.
Everyone in the country Gary -- seems to know about this more more as each day goes on in -- already having -- serious impact on our economy.
At a pretty fragile time so here's the thing is this enough to get lawmakers on both sides of the aisle to do something or do you think we'll go off the -- I think they'll get something done but the solution really worries me.
Since when have we ever seen any spending cuts coming from Washington DC.
Charles spending it's gonna go up ten trillion dollars over the -- the decade.
They're telling us they're gonna cut a few trillion off of that so spending is gonna go higher and taxes my big worry is once.
They'd break the top and raise taxes but we're talking marginal rates here.
It's not gonna stop that's the worry I gotta tell you from me the biggest -- all this.
Is they waited for the last -- on the debt ceiling and then sold it -- the end of the world that's coming if we don't get it done now yeah I've waited for the last you know.
Absolutely and it gave final reading of crap out of everybody here -- -- to bring everybody -- was -- -- -- deadly -- -- let's talk about this because.
Great article in the journal businesses are cutting back there's no doubt about it but now consumers are cutting back I mean this -- and that's all really an indictment on don't want and every one of Washington.
One of the reasons is -- calls it would go -- the fiscal cliff and these automatics and tax increases kick it it will hit 90% of American taxpayers the hardest hit.
Low income Americans who go from.
Getting a credit to -- -- like if you make 30000 dollars a year is a family you're gonna end up with a tax -- north of -- thousand dollars a year.
So they they -- every body and to that point people are nervous they are going to pull back and you you can't dismiss this.
But then again lawmakers' time and again and taking his right after the deadline.
I -- -- I I say I wanna I wanna thank Julie Julie from making my point.
Yes businesses do believe we're gonna get a deal they do then you gotta ask yourself.
Why are -- cutting back.
Because they know even if we get a deal with President Obama has in -- in terms of taxes from obamacare and down the line is bad for business -- might.
Every -- The latest every survey -- -- they are looking into monitoring all do what I think you're doing -- talking.
My what I think you're all doing is talking down the economy want to we're talking about -- -- -- and our top 2%.
Back to back to work than they were under the Clinton rates.
Three it's it's just wrong to say that you haven't seen spending cuts coming from Washington.
We have a deal in 1985 on Gramm Rudman Hollings -- in 1987 network and I spend your agility and bill had huge spending casually I don't I don't want my third wife -- I think I would I -- the article topic here because.
We're not gonna talk would have thought about 1985 we're talking about right now Ben doesn't want to thank you know what the point -- -- -- what -- -- do -- anyway.
A lot of people don't realize the stock market crashed after the debt ceiling debate was signed after deal was reached then the market crashed so just even coming up with some sort of bill.
I don't know you can all the public anymore can you all the markets or the public kicking the can down a down a road.
Well let me just -- -- respectful -- Warren Buffett is an extremely good businessman says that higher taxes will not impact.
His decisions whether to expand.
Are not expand his buildings and his factory's second thing is we have had very very high taxes and very very -- -- province and design -- and maybe a third thing with all due respect.
Then what's the solution we cannot -- running these big deficits.
I will say this though with respect to those -- profits.
One and a half trillion dollars -- sitting outside of this country.
A lot of these corporations when you dig through the numbers -- -- every time they report.
-- make your money outside its country Gary K I think that's the put one.
Businesses aren't making money in America and it's sometimes and sometimes the public gets gets a little bewildered because the market type but that's not a direct -- -- -- our economy.
I used the word potential I'd been saying this for -- -- few years now the potential for this economy.
Keeps getting -- what's the head with the uncertainty -- -- Washington and the potential for higher taxes.
We don't have a tax problem we don't have a revenue problem for watched NBC.
This year we'll have that they'll be close to the highest revenues ever back it from 2007.
Spending is up over 800 billion dollars this year than it was in 2007.
That's -- the deficits -- coming from that so what should be we talked about more than taxing people who -- in their rear ends off to do better for themselves.
And I got -- -- I don't like when Warren Buffett has brought into discussion about people making 250080.
Billion dollars to two different worlds and you know what you're actually right guys you know -- very -- business of Bob's and his daughter my amazing businessman million that he doesn't care about every reacted to your -- not the only business sense -- -- that was probably guys it's an.