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WSJ columnist Veronica Dagher on the fiscal cliff’s impact on taxpayers, the economy and small-business owners in particular.
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For more on that Veronica backers here columnist for the Wall Street Journal wealth management Ron happening here for a happy new year -- -- -- It might not be happy new years eve though potentially we just don't know how the market will react today doing we don't know what we do know for sure -- there's going to be a ton of volatility.
At every -- -- comes out of DC we're gonna see that market twits -- react.
And a lot of uncertainties going to be happening thanks that's going to be making investors very edgy it -- High net worth individuals are actually gonna make some last minute moves today.
Or do you think that they called a third visors and said hey look we gotta do this now -- -- -- summer.
I don't think -- deals -- Mean what do you think -- -- I think there's a little bit about I think some of that last minute deal making may be going on.
Especially when it comes to charitable deductions I think charitable giving.
Can be a last minute especially if you look at online giving some of those online statistics people give at the very last minute and granite probably not ideal way to give you probably giving cash as opposed to appreciated securities that's popping up the greatest move for you.
But there's still opportunities to give -- the very last minute if you -- -- he -- Donor advised funds another right people are doing that maybe they've got one set up -- any.
And then they can give now make that donation now and then take decide what charity to -- -- -- -- that's another option based on your reporting all the people you talk to does anybody on the planet think.
That tax rates at least for some higher income Americans will not go up.
-- -- -- And Arabic in it's pretty much -- that I think they're looking at -- so much of a done deal so it's like how do you hedge against that.
And some of the folks -- speak to we're saying you know -- it were and believe it or not may be willing to pay a little bit higher taxes.
If we can just get all this fiscal -- out of the way.
It's better for our country and we can move forward in Washington and so I think there's going to be some give and take but I I think people are expecting it doesn't mean -- -- -- They want it but.
We gotta get something -- There was there was a criticism yesterday you know focus on the GOP and the fact that they've been so.
Steadfast in we will not raise taxes on anyone even the top 1% the wealthiest 1% but if -- go over the -- tonight.
They know that they're gonna be blamed for the lack of a deal that top 1% -- -- ability to be that angry at their congressman and they're gonna vote them.
And that's a good question.
I think a lot to see what happens I think it out of all this shows is that the strength of the Tea Party as forty or fifty guys in the house seeing what's.
And calling the shots so I think -- what -- coming election -- to -- How the reaction Orleans but.
Like -- that I think there's an expectation that taxes are gonna go up let's just get a deal done let's take this big cloud off the market so we've less uncertainty and we can go along with the business of America.
And create jobs.
Into what we need to do.
In terms of higher income Americans there there are.
Certain tax increases and the Obama care law that was passed.
Didn't -- three point 8% and -- tax on investment -- com there's a higher payroll tax now.
Yeah at a higher level I've not mentioned -- -- didn't do last several hours.
But have what to what extent will that hurt our economy assuming you pay higher income tax rates.
On for some Americans you see you will -- that would meet again if you're taking money out of people's pockets how can that not hurt.
Absolutely it's totally gonna hurt because less disposable income you have you're given -- -- taxes the less you have to spent on other things.
And so that's going to actually put a dent into growth no matter what you know taxes be increased spending cuts -- eight.
It's going to hurt profits going to her growth in the first quarter especially -- -- -- a lot of folks are expecting what's gonna be painful no matter what you've got some tough choices to me.
-- we know women talking as a much about the high net worth individuals but there's also the high net worth.
Small business owner that is still filing.
Under his personal income tax or her personal income tax.
Form.
Do you think that we're gonna see a slowdown in hiring do you think that we're gonna see businesses shut down I mean how bad can this get -- you think for those.
That's small percent.
I think -- can get really bad I mean these guys have been dealing with so much uncertainty for so long based stalled at investment ideas -- -- -- hiring.
We're gonna see more of that if they're gonna get taxed more -- really in the small business owners and as you know they create some -- -- jobs in this country.
He's really gonna put the -- a lot of pressure and that's not good for anybody.
Ron good thank you happy -- -- they -- actor on the Wall Street Journal they well.
Good morning isn't it well it -- name -- name -- but now you would think that those folks in -- would have got the deal -- No I'm not even close.
Still major divisions between both sides of the aisle as lawmakers fail to come -- -- their agreement to avoid the physical well.
How -- continues.
-- that -- McConnell and Joseph Biden on the phone with one another.
Meantime President Obama is pushing for a senate vote on separate plan from the White House all this is the nation move war.
Tax hikes and drastic spending cuts in the new year nothing.
And good morning and happy to say it.
Happening yeah.
Great time to spend with you this morning obviously we are now about thirty minutes away from the markets opening here in this country and -- -- I guess as the best way to frame is all of this today in the volatile little cuts and bond market closes its news as well -- conference current we are gonna have a full trading -- I believe they're not up for US markets -- take -- -- illiquid and people do work out what you get the -- that people -- work because their last -- portfolio -- people in particular people who -- small cap stock funds -- and -- -- ten on the low volume stocks trying to make their portfolios look better.
