Fox Business
Expand
Browse All Video
Watch Live

You're watching...

Market News of the Day: Tax Reform

Details

  • Description

    Will reducing unemployment help achieve stronger U.S. economic growth?

  • Duration 5:18
  • Date

Clips

Also in this playlist...

Latest Video

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

Not just give you a taste of what's going on and for that I'm gonna bring on vallhund NJ NC I know of Greenwich welcome unfamiliar.

Not -- -- up.

Some were hoping -- production QE3 -- I think we all had a pretty good idea that that was not going to happen this time around what would it worry not.

Laws actually praying that it would not happen I think we've had an awful economic stimulus from the Fed and hasn't really done much good.

How we're at 0% interest rates virtually an it hasn't really help the economy much I don't think on the Fed really needs to do anything else and I think.

On the market was really relieved to hear that the Fed will not give us QE3.

And I think that that really helps to build or investor confidence that perhaps the Fed believes -- to talk more stimulus -- -- Now that's a -- -- -- -- juxtaposition so what are you explain that.

Why is it that the lack of -- stimulus would encourage investor confidence.

Well I think the market really believes that monetary our stimulus is already on -- but you can't really do any more with monetary stimulus that -- you need to have real fiscal stimulus you need to have tax reform.

And therefore record divorce really in the name congress' court and I think that that's what the Fed was really are trying to say.

They can't really do much more than they've already done if we want more stimulus it's gotta be proper stimulus in the form of on tax reform.

Now they're.

-- and the main point that came out of Bernanke's speech -- essentially that.

The Fed is gonna continue to assess the economy and we -- planning tools at our disposal and we'll continue to use them.

When we deem it appropriate essentially.

So basically the Fed gonna do its job is what He came down do so with an it was -- a lot of nothing.

Well -- it is a lot of nothing but but remember the Fed has this dual mandate and this is not causing a bit of a conflict on congress told the Fed many years ago that it's not enough to worry about the sound on dollar you also have to worry about employment.

And this is what's causing a conflict for the fact.

The Fed really needs to focus on the most important thing in that's a that's a sound stable dollar.

And as we saw the price of gold go off through the moon that pretty much told -- that investors did not believe that the Fed was doing his job in protecting the dollar.

So this news I think today is very good.

That the Fed has decided that it's already done and -- yes it will do more if it thinks that He can do more -- to help the economy.

But on the bottom line is the Fed's done and -- we now have to turn the congress.

Well and -- that -- insisting that you say that isn't there are a lot of people and He spent a lot of time talking about what policy makers.

Can do as a -- say if you read between the lines are basically saying it's up to congress now defendant can only do so much what was your take on.

Well it's absolutely up to congress and I think would be premature for the Fed to do anything right now especially since we've already named a super committee we recently had this bill.

Paul I think investors want to see what the super committee will come up with I know many investors like myself we're kind of skeptical that they will come up with anything that and really doing good.

But on.

They need to argue to super committee a chance they need to see some real reform mom I think we need to see some tax simplification that we need to see.

You know for example I've been a big proponent of eliminating deductions.

Prohibit big can't even agree on whether or not to raise or keep tax cuts and yet I -- you we are talking there is a complete tax overhaul we couldn't even get in the saddle.

On tax increases in a few spending cuts to get it when they had a deadline -- -- -- But remember if they don't agree on anything there will be automatic cost fortunately some of those cuts will also commonly -- defense the defense area which I think is a very bad thing for the country in the long run but there will be automatic cuts to the bottom line is.

The super committee now has a very strong incentive to work together and come up with something that.

That most reasonable people in congress can agree with.

And do you think that they have the ability to come up with a tax overhaul of your -- Well that remains to be seen I personally don't think this committee will come -- without taxes so I think that's going to be more of a long term thing and perhaps not until the next presidential election.

OK and -- you're an investor so what do you look for out of Vienna out of the sub -- decision in what are your feelings on.

Raising taxes to bring in some more revenue and what are your feelings on the spending cuts argument.

Well you know my feeling on raising taxes is that it's a mistake to ask people who are already contributing the bulk of the taxes to contribute even more we often hear of the criticism from the left saying that.

Com we need to ask the rich to pull their fair share to do to do their fair share and to contribute contribute more.

My view is already that there are already doing more than that the top 1% in this country are paying 40% of the taxes.

I think there's something wrong with the tax system when half the people are not paying any federal income tax at all.

They have to have some stake in the game as well thought even if it's a very small amounts of what I would like to see over the long run.

Is on is a tax code that's -- less progressive.

That gets rid of a lot of all tax deductions that lowers the top rates I don't know I personally would be willing to give up all of my tax deductions.

If I could get a lower tax rate and so I file my tax.

Well that's the issue you know I need to look at the tax rates and there's they're -- very heavily obviously with the upper tier income paying a vast majority of the taxes but they're also tons of loopholes that only that demographic really -- take advantage of net interest.

Only one of the people who is very very if very much in favor of taxing the rich more is Warren Buffett one of the richest people in the world.

Load More