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Personal Capital CEO Bill Harris on the need for further spending cuts, including entitlements.
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-- respect for all of our teen watching and yes it happened Washington agreed on a deal to avoid sending the country over the fiscal -- Our next -- at the -- would force the country to get our fiscal house in order.
Did -- -- new tax deal enough.
Joining us now though heresy he is CEO personal -- -- -- Barbara CDO PayPal and Intuit and he's not a New York today's you can season San Francisco an adult.
You were among those who thought.
That this crisis might lead to some kind of restraint on spending.
Not so bill in fact there's going to be more -- if you throw the sandy bill -- and I know there are a lot of good people in New York area who need it.
The sandy bill but it's gonna feed a lot of bureaucracy in Washington is well soul.
Is all hopeful for for cutting spending -- lost.
Well it's only half a loaf but I think there's a lot -- in what happened last night.
-- should have happened lot sooner than that and down unfortunately I think Washington is becoming the entertainment capital of the United States.
I hope that moves back to Hollywood.
But within what we did get and you -- it's only that tax and increase its not the spending cuts and the entitlement restraint that we need.
But what we did get was three quarters of a trillion dollars -- Deficit reduction.
Hello hello hello.
Not exactly their -- because you use -- you're assuming.
That this new revenues going to reduce the deficit I don't assume that at all.
A in fact if you look at history the more money the -- and the more goes into new spending rather than reducing the deficit.
Well you're -- you're absolutely right and we absolutely need.
To do the next step which is spending reductions and entitlement reform -- I do think that'll happen.
I do.
In what form and what would you like to see -- -- really need to see and do you think that they will tackle that big.
Heavyweights the whales the Social Security in the Medicare waste and fraud etc.
I think we have to.
We have an aging population we have no choice it's not a it's not a problem unique to the United States all developing nations have the same problem.
Of an aging population which is the result of medical increases -- standard of living and all that but.
We need to take note of the fact that people are living differently and working longer today.
Than they did in the thirties when Social Security -- in place.
-- -- bill you know I'm I grow up and -- maybe that's why I'm so cynical about the place but.
And the fact is is that it's not it's usually not until there is a absolute crisis that people react -- -- when.
When the Washington government shut down and -- and they closed national parks that's when they've got serious about that things in the past.
We haven't reached that point yet are we likely to is they're likely to be in events in 2013 for example what.
-- bond crisis and big increase in inflation or something that will force them.
To do some real deficit reduction.
Well I think what what forces them is this sequestering.
As well as the the deficits -- Okay I've got to ask you because I love looking at your bio and seeing that you would in the CEO of Intuit which of course who owns -- nor has -- at some point use quicken.
This -- it to the confusion.
Or simplification.
At least in a small way.
To what people believe they will pay in a -- so many CEOs think I just need to know what.
My tax rate is going to be so that I can then proceed now we do -- Tax certainty is and really important not huge right but especially especially for businesses when you try to do multi year plan.
And we've got a bunch of tax certainty coming out of this bill.
So I think I think there's good news on many fronts I will say though.
That in terms of the tax simplicity.
We've not achieved that in fact it's even more complicated there are more.
Ordering rules.
And the people a terrible attacks I used to run Turbotax the people of Turbotax.
Will have trouble getting their that there releases out in time this year.
That's a very interesting point having -- accountants love this.
The Turbotax folks said they're gonna have trouble but I'm sure they love it because it it is.
A lot more -- were going in exactly the opposite the reflection of tax simplification right.
That's right but it takes me back in 1992.
I was taking at chips off the precursor to -- public.
We made Turbotax.
At the time Jerry Brown was a candidate for president.
And he was endorsing the flat tax.
And -- members.
I was I was queried by the investors that I was talking to you know -- gosh what happens to Turbotax if there's a flat tax.
And I said.
Anyone in the room -- seriously believes that the congress of these United States is going to significantly simplify the tax code.
Should not buy the stock.
But it's amazing how we ever did Jerry Brown were flying flags at -- point though but of course he's -- -- -- opposite direction now.
Great to see a bill thank you for Karl had a happy new year thank you.
I don't yet to not put it in perspective offshore.
