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Tax expert, Rick Rodgers, on how to make the most of your business under President Obama's policies
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We're -- not as optimistic -- I -- financial planner joining us now from Philadelphia right now and it's -- -- thoughts on the election.
A bomb on takes it it's clear as a decisive victory.
And Heidi about that right.
Well I'd prefer to I have seen somebody more conservative elected but president really needs to.
To eliminate some of the uncertainties I think facing small businesses there's.
Three big uncertainty is of course taxes which will be the main topic of news -- next six to seven weeks as we approach the end of the fiscal cliff.
Certainly regulation and and health care and if we could get some uncertainties people and I know you can't eliminate them a 100%.
Let's just eliminating.
Some of the uncertainties are making it less and certain is going to help small business which is gonna help.
Create jobs we have about five minutes to get through so many topics so I'm gonna take you through -- and you're gonna explain them to us because these are big issues and -- very important.
OK so so let's start win.
If there I -- are the bush tax cuts going to expire in January and what happens if they didn't.
Well I think it's highly unlikely that they do expire.
And I know that they keeps being referred to as the bush tax cuts but really we're talking about the tax relief act of 2010.
Year which extended those tax.
Cuts along with other tax cuts that were passed.
Afterwards which show one of the things.
Facing most middle America is this 2% payroll tax cut.
-- -- the tax man he's done now it's right isn't done.
So it'll be done at the end of this year -- -- And so if they extend the tax relief act of 2010.
For another year.
It gives them a chance to attack tax reform and I think that's the most likely scenario.
Is that after a bunch of the posturing and arguing over the next six weeks.
That the -- to put this all for one more year and take it up in the new congress.
Of course the main sticking point.
From the president's perspective it is extending these tax breaks.
For those making more than 200 -- making more than 250000.
He's been -- -- about not in.
Allowing them those breaks to pass -- and I think that's going to be what the big fight is over whether this it gets extended for one more you're not.
Okay let's talk about the fiscal plans this is -- through it it's gonna happen January want nothing is done to stop.
Essentially 88% of America paying 3500.
Dollars more in taxes next year.
Your thoughts on that is this Oakland.
It will be avoided in my opinion what we will it's him.
It's like driving a car towards the Grand Canyon we -- that the canyons there we know we stay on this track we're gonna go into the Grand Canyon.
At the last minute we turn to one side or the other.
I love Winston Churchill's comment which said that Americans are great people.
That you can always count on to the right thing after they've tried everything else.
So as.
As we have as we approach the fiscal cliff -- again be a lot of posturing but eventually.
And unfortunately it doesn't address the uncertainty because I think what'll happen is we just extend everything as it is for one more year and take up tax reform.
In 2013.
Which is really.
The only way that we're going to avoid doing this year after year getting down to the end of the year and not and nobody knows what's gonna happen attacks.
Let's listen to speaker Boehner yesterday talking about an alternative to the fiscal Clinton and -- talk about it on the other side and we'll hear from Harry Reid after after -- To us.
There's an alternative to going over of the fiscal close in whole or in part.
And -- making real changes to the financial structure of entitlement programs and reforming our -- -- to curb special interest loopholes and deductions.
By working together in creating a fairer simpler cleaner tax -- we give our country a stronger and healthier economy.
They tried it before they the Republicans.
They tried it before we're gonna shut down the government and weren't gonna raise the debt ceiling.
They want to go through that again.
Fine but we -- we're not we're not going to be held subject to something was done.
As a matter of fact and all previous administrations.
-- that exchange.
Yes -- -- any thoughts on the fact that Boehner seems to -- giving a little bit but Harry was like absolutely not.
-- you well.
You have to.
Really diametrically opposed positions where.
On the Republican side we don't want to see any kind of tax increases whatsoever and -- on the democratic side some tax increases are gonna be okay.
Our problem is in my opinion that.
We spend too much it's not that we don't tax and outfits that we spend too much and how we going to address the overspending.
And actually if we can make some small changes now let him we can we we could fix that.
And and it has to come from entitlement programs and and Social Security we could raise the retirement age we couldn't cut the increase on the cost of living to cost of living less than half percent we could take -- study.
The -- -- increase for Social Security recipients in the new year is marginal.
Right is a -- there isn't like the 1970s or something crazy like that.
Right back because back to know I think 73 is when that was originally instituted.
But the studies that that I've read said that if we keep the cola.
And just reduce it by half so if inflation was one point 7% last year that we make it one point seven less -- have.
That that's gonna take care of 25% of our deficits doesn't take care of all that.
But it makes a significant difference and it doesn't cut anybody's current benefits it just slows the increase in spending.
And that's really what we need to do here in order to get rid of this deficit.
Is not necessarily spend less than what we did the year before that would be a great idea.
But just to slow the increase in spending to maybe two or 3% from the current projected six -- 7% increase in spending.
What about entitlement programs.
Entitlement focus -- when talked about with well what's next for security and Medicare tax breaks for corporations.
You know everyone always says the oil industry is all of these tax breaks and they do ignore the fact that you know ExxonMobil but the largest taxpayer.
-- -- -- but what about those the tax breaks for cement companies.
Well I think that we -- and courage energy production and that some of these businesses should have tax breaks.
And now it's easy to demonize the big corporations but really.
Again it's not that we don't tax and -- It's that we spend too much and so we really need to be focusing on.
Reducing spending going forward or at least slowing the increase in spending which would allowed to eliminate the deficit with then nine to ten years.
We have about 22 if you wanna give me some final -- Well I think that tax reform will be.
Will be debated in 2013.
Some kind of leveling the president has indicated throughout this year that he was in favor of some kind of tax reform.
To what extent we get tax reform.
But I think the president knows that in order to really eliminate this problem with the Alternative Minimum Tax.
The only way that we're going to get rid of it is to take -- tax reform because it's just too expensive for them.
To eliminate it without offsetting spending and and that's not gonna happen.
Rick -- thank you so much Rogers speaks dot com -- your website you -- on the screen right now the new three legged stool and ask for signing off really quickly.
-- and some people are saying raising the retirement age is ridiculous well.
Some -- out there say we're -- -- -- working until we're eighty.
