New budget figures sparking debate over tax hikes
Truth behind January surplus
- Duration 5:25
- Date Feb 12, 2013
Truth behind January surplus
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Well let me -- let the tax hikes -- because the media all but fawning over them as a big reason why those budget numbers are looking good or at least better.
Crediting higher payroll and -- -- tax revenues for those shocking improvement.
Those payroll tax hikes and everyone -- largely said to be bringing in an extra nine billion bucks in January to say nothing of the heights on the well to do.
So is that a green light from more tax hikes and a red light for more spending -- to fox business's Melissa Francis.
And -- statements but it -- You know I'm a totally different interpretation and the way the mainstream media -- this bigfoot I mean he's not there on the screen the second line was well this is because those payroll tax cuts expire and I think they noticed all these writers.
That their pay you bear paycheck on January 1 was much older volunteers and I don't of course amazing this have anything new with the government that money that disappeared from my paycheck in January hey look there it is the government has it now they're gonna -- it.
Waking up to what's going on.
Well I hope you're right I'd I'd disagree we've -- there -- I I hope you're right but but -- One could seize on this and if you're an advocate of big -- say well whatever we're doing is working because things are beginning to -- along the deficits are coming down.
Will only be looking at at 800 billion dollar deficit this here.
-- other ideas that's not the case and and the media is touting -- set three billion dollar surplus were on our way.
Unfortunately -- it that it had nothing to do with the fact that they were spending less during the month of January.
And in fact it wasn't because they were growing jobs -- the economy is actually improving.
They -- -- taxing those that were earning.
More bottom line and -- this doesn't address how that's gonna impact things going forward.
In in the next few months of the year what -- -- saying that -- know that's gonna have a corrosive effect news -- weekly consumer sentiment we -- consumer sentiment -- to the lowest level.
And over a year in January as people saw there paychecks shrink.
Retail sales numbers -- -- tomorrow they're expected to grow a dismal 110 of 1%.
So they shocked everybody speech active.
-- -- three billion dollars surplus but we're not going to be spending and we're certainly feeling a heck of a lot worse about the economy and what.
Is going on a corner -- and muted -- getting closer and closer to an all time record of almost 48 points today.
They must see the same things that you you both report on extensively on Fox Business.
And and either they see it and ignore -- or they see it end and -- Despite I think they don't care what the government is doing there what the White House is doing what they're looking as what the Fed is doing and it's not bad is the day that's what the stock market is all about what -- red -- these steps is getting.
-- you don't but I don't.
I -- I don't think they buy it I think they see that GDP contracted in the fourth quarter I mean let's not forget that that was devastating news just a short time ago but they are focused like a -- are on Ben Bernanke and what he's doing and he has said that he's targeting unemployment what they're telling you is that they don't think unemployment.
Is gonna go to 6% remember he said that he's gonna continue to -- He's gonna continue to pump is easy money into the economy keep interest rates low as long as unemployment -- dropped to low.
That means that it pays to be in stocks not bonds that's what they're reacting to what Wall Street is -- with this record.
Is unemployment isn't going down any time soon we don't think so.
You know what I worry about even good news like this we get a treasure on the standard data in the last you know the first months of the fiscal year.
Is it's an excuse to not do anything you can -- it as a past not to use.
Let's face it this stock market's been cheering on bad news -- more bad news we get on the economy the more the stock market continues to go higher.
Because as Melissa sang everybody's watching the Fed the Fed is the backstop if things get worse they know they're gonna step in they're gonna pump more money they're gonna buy back more bonds.
And they're gonna boost the stock market.
So what if the president says nothing about spending resolved tonight what -- he continues there's a theory might that that you know more initiatives as more creative ways and more spending.
Is Wall Street -- to that I'm gonna continue to rally despite.
If there's still the threat of the sequestration march 1 and then we all get concerned.
And we finally see reality sedan set into the stock market I think everybody -- is starting to feel little antsy about how high stocks have come with not great.
We sort of went to -- -- reasons which references one point three -- and an automatic spending cuts that they called on March 1.
If that takes hold a lot of Republicans -- saying.
Better that then then tax -- we might just go would.
Actually in their actual real spending cuts in the -- it's not when the president talks about -- one point seven trillion whatever that is going to save me out yours at all has to do it.
Budget caps that may or may not happen down the road spending caps that no one believes is gonna happen -- that.
Reduction in interest payments when they're saying that that's going to be smugglers or interest payments will be smaller than I -- wondering residents at mission all of an accomplice on this when he says.
He leaves the could dare I say at the uncertainty on the table.
And the markets don't like uncertainty and if we are still left.
With -- -- doubt going up to march 1.
We're gonna see that reflected in the stock market eventually he'd think everybody's very very focused on the short term including the stock market and they just do what's right in front of earnings were glad it's easy money yet they don't they see companies -- and it and they think that unemployment gonna stay high and everybody's just focused on what's in front of and nobody cares about the CBO report last week.
Showing what's gonna happen to our economy in the long run.
If we continue to have this huge debt how much growth we're shaving off for our children they don't care centers from those content that -- -- -- -- -- But -- -- -- little problem statement of behavior on the ladies thank you don't -- very very much.