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Business strategist Carol Roth breaks down how the president’s push for higher taxes will impact the economy.
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What does stand taxes and bring -- business strategist -- -- Chicago Carol.
Something tells me that you do not I think taxing the rich is gonna help small business is just the -- What do you think bad Charles and -- it's amazing -- -- that that -- it's funny is the word taxing the rich we're not necessarily talking about the rich we're talking about small business owners in this country anybody who's making 250000.
Dollars and more we're not we're no longer talking about just the -- Buffett's.
Of the world and in my opinion it's fairly arbitrary.
Yet you know I -- I hate that part of it more than anything else just about a outside of the fact that I think -- -- -- -- policy.
But that's somehow think couple making 250 branded out the cause -- -- depicted a white makes 180 and that they are the ones holding back the US economy.
You have some hard numbers though for -- how many actual small businesses are gonna be impacted by this.
Well by all accounts about one point two million small businesses are going to be impacted by that's.
These are small businesses that report their income not as a corporation and but have a pass through entities.
So if you think about it one point two million job creators -- we all -- everyone agrees that small business is the engine that creates jobs and growth in the United States -- -- maybe 181000 corporate entities that -- one point two million and job creators I know that that's only 3% in Obama's eyes.
But that's a huge number of potential job creators -- those small businesses just hired a few people each we wouldn't be in the job crisis that -- in today so I do not understand how to -- saying it.
The people who can create jobs is supposed to help our economy this -- Adam Shapiro I was curious when the president says he just wants to go back to the Clinton Era tax rates why is that perhaps misleading.
Why -- first of all there are so many.
Different taxes that are going on right now that are impacting it not only the economy but small business owners say you have to remember Adam not only are we going back to the rates.
For small business owners but we've got the Medicare tax that's going to keep on top of this and then we've got.
The increase in capital gains and dividends that are -- around the corner so there are a lot of different measures that are going to be kicking in all of the same time but you also have to remember we're in a different economy.
And I think that that's that the conduit here.
So if we were in a economy that was perhaps grow weighing it would have a very different impact but the economy's not growing we're teetering on the on the brink of going back into -- recession.
And that we have a huge problem with jobs so I don't know -- might have missed -- economics course at -- that says it's a good idea to increase taxes and to hinder job growth in the face -- that kind of an economy.
-- I'm not familiar with that strategy.
Well maybe -- go to -- Moscow campus that's why but.
Everybody but has anyone crunch the numbers though this say okay what what the impact -- in other words we know -- point two million small businesses.
This 3% as as you know really not being honest because -- we're talking 48% of the trillion dollars that these small businesses generate so.
What what could that do is your worst case scenario have -- have you or anyone else that you know Carol and able to really figured out because you just talked about a double dip recession.
To -- this seems like it would certainly be enough to pushes into that.
-- I think it's really hard to quantify an exact number and I think that by putting that out there it gives people the opportunity to take aim at that number instead of the broader economic issues here so I don't know.
What the impact is in terms of -- exact dollars but you can certainly understand the fundamental.
Underlying economics here if you're taxing the people who are incentivized to create jobs that's money that's going it's basically just a ship that shifting that revenue from the private sector to the government and I think that the government had a fantastic track record of allocating capital.
People wouldn't have such a problem with that but if we look at things like Solyndra and all the other wasteful spending and investing.
That the government's done in the past we know that that's not a good option so why should we take that money away from the small business owners or from the consumers of this country and give it back to the government just doesn't make any sense I agree a 1000% -- -- thanks a lot this morning appreciate it.
