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Author Steve Siebold on the call to increase taxes on the nation’s upper class and how it’s impacting the markets.
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The rich that dumping high dividend -- that's selling assets this year.
They're trying to avoid paying more in profit and dividend taxes which will hit next year.
President Obama said at a news conference yesterday he's open to compromise on this fiscal cliff thing.
But wealthy Americans they will be taxed more.
-- compromise and I'm open to new ideas.
And I've been encouraged over the past week to hear Republican after Republican agree.
On the need for know no more revenue from the wealthiest Americans as part of our arithmetic if we're gonna be serious about reducing the deficit.
He wants to raise tax rates on the rich on -- -- nobody wants to raise taxes on dividends and profits as well.
Joining us now -- -- -- -- all how rich people think Steve welcome the program good to have you with us.
Hey thanks -- -- premise is that the stock market is way down because a lot of people rich people in particular.
Off selling stocks on which they've already made a profit they sell now they get a lower tax rate and if they sold next year -- -- their profit in 2013.
What does that.
Absolutely this is the time to get out and there and we're seeing it on the -- seeing -- and all the different sectors I mean people are selling off like crazy and it's.
It's the right play I think it is tax driven.
Oh I think so.
Yeah I think -- I -- -- since the election I mean it's just it's just been like a frenzy and I think we're gonna see it that throughout the rest of the year.
All right -- book is how rich people think.
So that you're telling us that they think in terms of -- and reducing their tax bill.
Is this extended beyond -- -- I hear there's a lot of selling of vote real estate William May have made a profit and off we will quoting a Roscoe the web -- -- five million yesterday a big diamond that went for 21 million so it's an across the board selling.
Exactly admits it's a mentality I think it consciousness it's in it like you say it's in the art world this in the -- -- its real estate.
It's stocks it's the -- every every every area I think they're selling off on the out look -- if they're selling off and every area one of the doing with the money.
You know that's a really good question I mean that that's the million dollar question what do we do with our money now that I mean we're looking for -- gulch and I'm wondering who's gonna who's gonna build that lead us there I don't know.
He's a good question that though that's interest you can -- the question I mean -- -- Italy's rich folks we know -- bestselling answer to without that the getting cash.
But you don't know -- -- money's going.
You wanna guess I'll probably.
Well probably the most common answer I'm getting Stuart is that they're moving -- offshore I mean that's what I mean I'm hearing lots of different countries are moving it to.
They're trying to find a safe haven because they know the taxes are gonna be higher than than the Obama administration is as you know currently siding and now they're afraid I mean they're they're terrified of this.
Pointed that amounts to tax invasion really doesn't because you move money offshore law.
You've got a -- -- out where it is -- gonna declare any income that you make on it.
Are you telling us that rich folks are -- Basically avoiding taxes.
Well I think they're trying to be creative like they always have been -- -- creativity is what makes the rich wealthy and that's what I found out over you know interviewing them for.
The last thirty years is that creativity is their best thing and I think they're trying to be honest about it but they're trying to be creative.
So when does it come back to America.
I don't know that's a really good question that I'm asking them that an end and they don't know either I mean is America ever -- -- be the same I don't know I mean four more years of above the Obama administration.
Are we you know are we AB get -- recognize this country after four Moriarty helped delta I don't think you're painting a pretty grim.
Idea of them that mood sounds like them to spend.
They are there's no question I mean it this after the election I know I never have seen and talked to more depressed rich business owners that on November 7 I mean -- I've never never experience -- like in the thirty years up to working with the Wellfleet.
Now when you talk about the wealthy are -- talking business executives people make their money corporations are told about inherited wealth I talk about traders.
-- -- rich people you're talking about.
Yeah mostly judgment yours that's the group I work with the most and I've interviewed the most entrepreneur lowers some corporate executives and presidents but mostly people that -- their own business and came from nothing no inherited -- -- work with the inherited wealth -- He wouldn't touch them with a dimpled -- look at that -- been and I were to -- the eighties that I got away from them real facts have to happen.
How do you explain then if you do if you will -- a lot of wealthy all entrepreneurs -- disappointed with the election.
Didn't they vote for President Obama.
If you if you break it down by zip code.
-- rich people live there was a very strong majority in favor and -- to fall President Obama you wanna explain this.
It's not tell -- what it's if there -- out there they're hiding because I they're not the risk they're not the wealthy people that -- businesses that I that I you know work -- These people all across the board voted for Romney and that you know you can't blame them okay gloom and human despair among the rich you heard it right here ST -- thanks -- much indeed -- good to see you can thank you.
