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And -- president -- holding his Twitter town hall this afternoon he is -- questions pouring and up from all of the place.
On Twitter ask Obama has tagged arrogance -- speaker of the house John.
Boehner C in their speaker Boehner he had a number of questions -- an -- take those are not but with all this in mind.
We figured we hold our own FaceBook -- today on our -- -- -- Connell FaceBook page we've been taking your questions but it.
Since last night they've been pouring in and water could once so thanks for writing and we appreciate that -- that -- -- -- rate Michelle.
So we have a couple of good guess here to answer your questions Bob Bennett former.
Republican senator do you talk senior policy advisor these days -- -- fox and we also have mark -- here.
Senior economist at Wells Fargo so Markel gets a year -- -- second -- to go to the senator first to -- -- the first question -- from the forum.
And here at risk if the president were to cut one single entitlement what do you think it would be and how much.
Could that see senator Bennett.
Well -- the president -- -- and entitlement it has to be by congressional action so let's understand that.
The entitlement that I think is the richest target of opportunity is Medicare.
It's also the most sensitive.
But one of the facts that we that we ignore when we talk about cutting Medicare.
Is that something like 80%.
Of Medicare expenditures occur in the last thirty days of life and -- stop and think about that for just a minute.
We are spending.
Billions of dollars to keep people alive for an extra two weeks.
And that frankly doesn't make any sense.
Other countries don't do it.
A lot of people individually say they don't want to do it I don't wanna be surrounded by machines.
That are running up hundreds of thousands of dollars the day -- to keep me alive for another week.
Give me some painkillers send me -- -- let me die with dignity surrounded by my family rather than machinery.
And -- we could work that out in Medicare that's the quickest way to save billions and billions of dollars in entitlement spending.
I Medicare cuts apparently in Richardson reported on -- earlier this hour are on the table in these negotiations market -- go to you with the second question from -- Our FaceBook page and this was what effect.
Well tax increases of the new health care law -- bond job creation penny wrote that in our FaceBook page mark what effect.
Well I -- -- and that has to be a negative and ended but we're we're gonna look at I guess 3.4 percentage point increase and in taxes on on investment income yeah the proper way to refer to it not unearned income is this is in the bill like that but it's investment income.
It's certainly it has a modest negative effect I'm I'm really concerned about the timing -- it -- coming in in 2013 but.
You know it it's something that the markets will will -- in ahead of time because we know that it's coming MBS has -- that one perspective we we do factory ahead of time.
But it's a it's a modest dragon in I can't put a number on the jobs that that aren't going to be created because that's in there.
But there will be less on risk taking -- would be otherwise.
So it is -- negativity even if it's -- this next question.
I'm actually gonna put to both the -- senator -- you can ask -- you could answer it first but it speaks got -- through the negotiation the back and forth.
That may or may not be going on behind closed doors Y 200000 for tax breaks that we raise that to a million seems like a number the reps could compromise on.
Al she'll try to get in on FaceBook has 200000 is the number usually senators you know thrown around for individuals to fifty for families.
-- but what about raising it up to a million where you have maybe there's an agreement that that's wealthy vs.
You know middle class or upper middle class depending on where you live.
Yeah well one of the things you have to remember with respect of this.
Is that just because an individual shows a million dollars on his tax return doesn't mean that he's getting a million dollars in salary or million dollars that's his.
Most of the small businesses in this country file -- called S corporation returns.
So that the profits of the company are put on the individual tax return.
That's in order to prevent double taxation right if the company is tax and an individual's tax so.
In many cases even a million dollars which would be a very very substantial.
Income for an individual.
May in fact not be that individual's income at all -- encumbered the business and putting that -- -- increase on the business could could very easily be a job destroyer so.
The devil -- follows in the details and let's not fall -- as saying a blanket solution that's the quick way to raise tax revenue.
Let me ask mark about that than the economics of it a true millionaire's tax mark what effect.
Well a true millionaire's tax would wouldn't would be more appealing in the sense that that it it it would seem fair that hitting people of 200000 level but.
But from an arithmetic standpoint it's not gonna hit as many people -- raise as much money which is why you don't see people gravitating toward that number.
But I agree with the with the with senator -- and -- that it it is.
It really hits small businesses of a big way right and in we're already seeing that small businesses -- calling from from higher taxes they're effective tax rates have increased.
Over the last couple years and in enforcement actions by the IRS are causing a lot of businesses to pull cash out of their business through the growing their -- their businesses right now other shrinking.
We try to squeeze at least 121 Moran is is good guys cited above from both -- -- -- here this one is an economic questions I'll let mark take it.
And -- try to keep this -- pretty brief them -- we'll get one more for senator Bennett data indicates that banks have enormous reserves are not lending -- as much as necessary for recovery why aren't the banks lending.
Credit too tight too much regulation we say -- Well for a long time the banks didn't pay attention to the five sees a credit and they got the industry -- a lot of trouble now they're paying much more -- attention.
To the five -- -- -- -- collateral.
In credit credit scores -- capacity.
He conditions they all matter today and that that's what's.
-- when -- grow more slowly.
Alright and senator Bennett the other question up there was a political -- -- be curious to see how you answer this one.
Bring it up here is there anyone that can really compete with President Obama in this upcoming election and maybe I'll add -- so.
What do you like at this point.
Full disclosure -- I'm very solidly in Mitt Romney's camp.
And I think he has the kind of credentials.
That will be necessary to take on President Obama the election will be decided by their background music that's playing at the time it takes place.
If the background music in the economy is very bad and dissonant.
Then I think President Obama could be defeated relatively easily if unemployment is down.
The economy is growing you'll see a repeat of the 1984 situation where Ronald Reagan won very easily from.
We we can't really make that prediction until we know what the economy's going to be like but that's gonna be -- determining factor and if it is.
I think -- Mitt Romney's background with respect to the economy.
His business career as well as his governmental career.
Makes him one the one bad match up against the present the best paired off senator Bennett former senator Bennett from Utah -- that they're out of Wells Fargo and should do this again at some point you guys are both great thanks a lot for coming on the.
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