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Former Pres. George H.W. Bush Economic Policy Director Todd Buchholz, Real Clear Politics National Reporter Erin McPike and Southern Company CEO Thoma...
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Or when I got some good news is a bad news sported a bad news you already know especially if you're in the top 2% taxes going up.
The good news maybe not up as much is it -- Welcome everybody I'm Neil Cavuto and it could be just one of those -- -- travelers thrown out there.
But indications today that President Obama is a little bit more flexible on this whole tax -- for the rich at least than we thought.
And don't get me wrong he's still wants to destroy you rich people.
He wanted -- more but not necessarily Clinton Era tax rate more.
To operate even go back to 39 point six present at least not right away where -- figures like 3738%.
That's potentially significant development I say potentially.
Because it could be a deal -- and here is line.
The president gets to say he -- Republicans -- then.
On having a rich pay more in taxes Republicans -- say -- and say well at least not as much more in taxes.
So in a sense -- splitting this tax revenue difference let's be very very clear here.
There's still a long way from a deal but the clearest signs yet that this president has been attacked for not being flexible on spending cuts by offering any.
Is more flexible -- once thought on tax on -- because he is at least offering this.
So what to make of this let's gets it and -- the real clear politics business roundtable member Tom fanning -- Former bush 41 economic policy director Todd who calls bond.
Aaron what we did make of this and do you get a sense from this that this is the making.
Middle ground the.
I think it is now I was up on Capitol Hill today and John Boehner had a press conference followed one by the senate democratic leaders and -- book sort of -- the thumping saying that neither side was was getting much closer.
But privately they are now Republicans know that at some point they're going to have to give in and rates will increase because Democrats are saying they will not.
Concede on raising rates it's just been announced within the past couple of minutes at the White House has put an offer on the table.
With the deal that raises one point six trillion in revenue house Republicans are saying no way.
But what Republicans want to see is an offer from the White House and they've gotten -- so there's.
There's a place at jumping off point where they're going to begin these negotiations and I think that's a good sign that things are moving forward.
You know it's authentic -- -- that you're you're head of one of the largest silly concerns on the planet.
So southern company and you have another real concern know -- talk about lowering that.
Dividend right I mean that could go as high as whatever that's operate ultimately ends up being if it's 3738.
Maybe 39 point 6%.
And and for a lot of the folks who invest in your company that's their life.
Life.
Well -- well -- us to mistake male group when I think about that why would the government want to put in place an incentive.
To induce people to invest in riskier securities.
Dividend paying stocks typically are lower risk than those that are oriented towards capital -- when you look at our shareholder base.
Average age about 63 years old.
And so they buy our stock to help supplement their retirement income their income is about 70000 dollars a year and you say well.
They're not subject to this 250000 dollar cap or whatever they come up with -- the fact did as when you increase taxes on growth capital like we're talking about.
We have already seen since the election -- 7%.
Reduction in the asset value stocks that dropped 7%.
For those people that are relying on those stocks just as the rendering their retirement years and that's a mistake for American families.
I'm -- maybe you can help me with this but I I always wonder whether.
Bridges changing our sense perceptions like but I had to close and in my first -- and what wife and I adamant and I'm on Condit would.
I expected.
Outlandish clothes and cost outlandish and they were only.
A little less Atlantis they would still outlandish.
But since I was picturing then charging me for the GDP of what did you make our money better deal did you sound.
Hale -- I don't know what I -- know in this state you when you brace yourself for outlandish Lehigh are taxes and they're only just higher.
Not may be atlantis' desire but do you consider yourself lucky I don't know if that's that's a big deal.
Well.
It depends -- those dividend tax rates if they go from fifteen.
At the upper -- to not 36 to 39 but actually 43 point four when -- -- Obama -- already raises.
Attacks is as a result of health the affordable health care act.
So that's -- it is challenging -- from a Tom is absolutely right at a time we're so many baby boomers are headed towards retirement.
And their financial advisors are telling them well as you get older.
It's prudent for you to shave back your investments in equities and stopped and go into bonds so baby boomers are being told to be prudent they should be selling stocks anyway.
And then you put on top of that a punishing dividend tax rate.
It is really.
A terrible risk for the equity market I think the equity markets been very complacent I do think a deal will be done.
But -- think this equity market is prepared for a breakdown in talks.
Prepared for the kind of acrimony that no doubt will come along the way before a deal was eventually reached you know Aaron.
