Lawmakers call for tax hikes as economy shrinks?
Washington not feeling America's pain?
- Duration 9:12
- Date Feb 2, 2013
Washington not feeling America's pain?
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Wall Street keeps on soaring yeah over 141000 for the first time since 2007.
But main street's still hurting.
Unemployment rising economy it's shrinking GDP contracting last quarter for the first time in nearly four years.
And consumer confidence tanking and that payroll tax hike -- -- -- workers' paychecks.
Add it all hot is it time to strike calls for more -- -- Hi everyone I'm Brenda -- this is bulls yeah.
-- there's this week we've got Gary B Smith Tobin Smith Jonas Max Ferris are what John Layfield and he's not welcome everybody okay Gary -- The White House and democratic leaders still pushing -- -- should they be.
Absolutely not Brenda you know I don't what I don't understand.
Is how you can propose tax hikes without looking at what this scholars say with the study say look.
If no studies out there says raising taxes great for the economy I get behind it but.
You know -- and every single scholarly study for the past fifteen years.
Has said one thing higher taxes.
Negatively impact growth.
You know it's funny if forget all backed -- if you just look -- anecdotally.
You know when that when the left wants to inhibit behavior.
Whether it's energy consumption and her cigarette smoking or anyone any other bugaboo -- -- what's the -- first thing they do.
They raise taxes and yet they say in this case -- raising taxes -- -- affect the economy.
Okay Gary -- said scholar something we don't hear very hot in here are able to verify the race card -- then.
-- personal I think we need to put some of the recent numbers in context yes.
The unemployment now at that percentage ticked up a little bit but corporate earnings have been strong the consumer confidence number that without yes -- University of Michigan -- actually app.
The consumer expectation number from you -- Michigan for the next six months was also up.
So this is not consumers pulling back from the economy.
It was really more -- a little blip that we signed a fourth quarter actually think when that gets revised -- gonna be revised back -- ports are not really that worried about where we are okay but but Toby.
GDP did decline I was really proof that just talking about tax hikes would hurt -- then consumer confidence plummeted.
Proof that tax hikes do really killed the economy and and kill concept.
While I mean if you have tax hikes don't -- -- -- -- why is it that these corporations.
Put all these paychecks out you know bonus that sort of before taxes one -- tax policy does affect -- we know that.
I'll go back to JFK you know when Gary B was a teenager at the big issue there is that that he was the one who -- you started the ball rolling and it said clearly.
You grow the economy -- growing the economy.
And and cause consumer confidence at this point I don't -- the payroll taxes much as -- Israelis is to say what's the next shoe to drop.
This whole idea of raising taxes and then raising spending -- the same time people start to figure out doesn't -- up.
-- honest there's -- a lot of data out there and how can you take care of that -- with out tax hikes and spending cuts and taxes are a lot lower than war through pretty JFK administration for sure.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- However a bigger drag on the economy probably the only bigger -- is when a government officially goes broke because they can't pay their debts what was happening Greece and it and then Ireland and other countries that didn't have attacked him to support the spending the politicians -- So we're not going to cut the spending to kind of kicking out -- -- whatever comes out.
The -- are gonna have to go off the question is how and how much and when.
This economy still little -- it doesn't look like if you look at the stock market but you can just continue to raise taxes this year more than they already have gone up as you're sort of the do it over like five years slowly.
But they're gonna have to do that to close this gap is not gonna go away through growth in -- we cut spending and it -- love doing that well all of.
Let's get -- -- -- -- didn't Democrats basically under estimate the impact that tax hikes would have and now they're talking more about tax hikes and that's the wrong message.
The guys -- wrong messes let's go back to when Toby was a teenager under Calvin Coolidge kept -- been pillaged -- cut down Woodrow Wilson high rate -- 77% pyrite -- all the way to create huge.
-- Ronald Reagan in the same -- Look at Democrats have railed against of the bush tax cuts they -- -- permit and now they realize oh my goodness we need some revenue.
But here is the problem and this isn't just a blip look we have structural unemployment with the lowest.
Labor force participation.
Since the early eighties that's more than a blip that structural unemployment in this country is not designed.
To handle that we could double 100%.
Raise taxes on Americans.
-- -- -- at one point one -- last year our deficits one point three we can't get there through tax increases the long we have to deal wrote any cuts these bottomless.
All right Susan what we do any growth and it part of what the president's been talking about and -- Democrats and in Washington it's creating a balanced package so.
There will be some spending cuts but they're also places where we need to continue doing that.
You look at infrastructure you look at other places with a technological advances that we need to continue to move forward if we don't lose get behind on those -- match.
We're gonna start -- Massive growth in the future and we can't mortgage you know the future put my -- accident president's point Gary -- Wall Street is to have -- have a great time it doesn't seem to be upset about any of these tax -- why why is it keep going up -- if Americans are hurting so much.
Well I make three points -- is thank god for the Federal Reserve in the easy money that's what I think.
Is behind Wall Street's -- I think it's totally uncorrelated.
And and disconnected from the economy second point is wing you know Suzanne mentioned balanced approach whenever -- balanced approach.
For -- away from the left you know what I hear.
Higher taxes because we know spending and is it gonna be cut the first point she made its consumer confidence -- makes it did seem like.
Augusta consumers' confidence is so great right now.
-- it's like in the sixties -- seventies which is still lower than the lowest slowly it was -- the entire bush presidency.
Well Toby impact the market early quickly and -- and he has like 3%.
From its all time high what's going on here.
It is is Wall Street not listening to main -- well.
Yes and Arabia as it right that that in you -- have to perform relative to other investments and at this point.
The bond market it needs somebody people have the bought bonds for so long that the people are overweight bond they have too much money in bonds and as interest rates eventually do go up.
Those bonds are gonna go down in value so so investors and in this instance the guys wanna be on the act we -- the other think we're pleased that mutual funds for the first time the last two months of accident inflows of of equity why because the relative return on everything else is so Docomo.
Well John are we gonna keep saying Wall Street go up if we keep hearing calls for tax thanks.
-- -- -- -- -- -- It's tough I thought I mean I.
I'm not used -- -- ever stop big sigh yeah I don't quite hear yeah yeah.
I don't know he has dragged all -- -- -- -- -- a very Smart -- Adobe is right there there is no place for money to go other than the stock market yields aren't there real estate has not -- good -- -- -- how things start to stabilize a little bit there's no place to put money.
And what Jerry is talking out of bed is treating this start marked a bubble and -- when -- have unfettered government spending and still low taxes the place to be -- the market.
And it's not.
-- -- -- Just it's so awesome sham by the for the earnings are at all time highs so why shouldn't -- part of the all time high that's ultimately drive stock prices are no longer alone or out of the box but.
These companies -- earning money because people are buying their goods so it's not so bad right now can we handle more tax increases this year probably not.
But right now corporations are doing a lot of money more than ever.
The economy's gone to handle that we try we'll get by far with the taxi -- you already have.
But but went to -- for the one they lay down for permanent do not cover expenditures already laid out by government over the next ten between thirty years.
Susan can't wait -- only thing that's happened I'm glad that there.
I don't think anybody's talking about tax hikes this year to be honest I think.
What -- is that is exactly right we need to think about what how do we stages over over here and also what taxes you rate I don't think anybody is also talking about raising our middle class tax.
We've seen out all the democratic leaders are saying if we if they get back -- -- we're going to be more revenue and that.
Means tax -- doesn't tell me it doesn't read -- Helena can also be in things flying high frequency trading at potential financial transactions tax or other things like that.
Oh yeah let's get a raise interest rates.
The middle class tax cut rate levels -- gonna have to go back to where they were under the Clinton administration -- movement -- -- the deficit at some point there's really no other way to do it.
Without one way economic growth and for -- well we're we're at a point now where we have the states so both sides are lined up for this battle going in the bag on my death did propose any.
Actual cuts in the senate on the spending.
I just will buy you another one of those early days you have -- they'll -- talk about -- -- right sexy guy coming to get the last -- right.