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Fastsigns CEO Catherine Monson, FullContact CEO Bart Lorang and United Advisors Chief Market Strategist Scott Martin on the impact of the fiscal cliff...
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More -- -- for the fiscal click deal is signed sealed and delivered we've heard all speculation from lawmakers on how it's going to impact businesses everywhere.
Well now it is time to hear it straight from the source -- they start investing hiring.
Firing.
Got -- money power panel of business executives -- months.
CEO fast times partly rang is -- CEO full contact and Scott Martin is chief market strategist with the united advisors guys.
Welcome to all of you back to the program.
And not Bartlett with deal -- -- that you feel confident you feel like.
You know now what to expect down the road they got it all settled you can plan ahead -- -- much people what do you think.
I'm confident in -- it's sort of sort of it's sort of like gave fiscal bridge to sort of nowhere for the next year is when that deal.
-- is still more of the same what I felt last year still a lot of uncertainty but -- Yeah.
Now do you gonna pay higher tax is -- -- -- what about -- certain -- Yeah I mean my biggest concern is really around our what our employees are paid the payroll tax holiday is going away so.
All of our employees and are making less money.
And all our customers are making less money so that's -- is concerned.
-- Catherine I mean what do you think about that because that's one of the things a lot of people didn't realize that at the end of the day 77%.
Of people would be paying higher taxes.
As a result of this.
Well exactly right and I agree with Bart I think that's gonna have a bigger impact the media is really covering that this income tax rate increases only hitting that top 1%.
But it's that 2% payroll tax it has a big effect think about -- worker that's making 50000 dollars a year.
And has a thousand dollars yet less to spend -- now.
And that's going to be on goods and services that he buys from small business owners who are gonna see a decline in sales.
So I don't see I'm with Bart did.
The hard to be extremely positive about it right now.
-- if you extend that even further sky you know the pressure on companies to come up with more revenue now on the big done everything they can't do improve the bottom line.
They cut costs they've cut back on employees they're doing everything as -- as they possibly can so now people look at companies as a show me the money bring in the revenue.
This doesn't help that if you raise anyone's taxes right.
No -- -- if you look at the top line it's it's not been going the right direction in -- top line growth of revenues just isn't there in fact over the last couple quarters.
It's really been declining the amount of companies that -- Top line estimates -- so that's the concern I mean where is that growth gonna come from.
And like you know the previous -- said I mean.
If -- counting on spending from consumers and you're taking money out of their pockets via taxation.
I don't see that demand kicking it and then what happens if your company you cut back on hiring you cut back -- R&D spending your own company.
That's just gonna be bad for stocks I -- -- one reason that that stocks have done so well.
Today's Melissa let's say in the last couple years really has been profitability.
And you're gonna attack the mere profitability by tax -- companies in the consumers never.
But are heading to the truth you're -- brave guy you're Smart guy you're out there running your business.
Believe that you really cutting back -- he he may be on the surface depressed because you don't want to see taxes go up there you.
Cutting back on our dear you really cutting back on employees I don't believe it.
So I mean I'm a unique case in attacking this -- just can't right.
But it is so one of those things -- I can't hire new employees because the salaries creep up a little bit.
-- does impact my thinking to some degree.
Again unique intact and in the high growth business.
But slower growth businesses there's a big issue.
-- Catherine what about you I mean the franchise business is full of people who are brave.
Entrepreneurs who get out there they worked their heart out I mean they are the heart of America the ones that take the risk.
And they're willing to be the ones that are called around the clock 24 hours the data run their business I don't believe there really cutting back.
Well I think -- they're sitting on the sidelines still in fact I spoke to a couple of our fast signs franchise partners today.
They knew I was gonna be on the show and they're still waiting to see they're not ready to hire new employees and are ready to -- -- new piece of equipment because they just don't know what's gonna happen.
The reality is really don't have they -- -- waiting to see it's been done that we've seen it I mean taxes are going up spending is going up it's -- does -- weakness seen its error.
Well and that the -- yes but we as a country don't have a tax problem we have a spending problem.
And in another week -- two or five we're gonna hear congress and the president fighting about the debt ceiling in fighting about spending cuts.
And that's gonna cause a lot of -- -- of uncertainty and concern.
On consumers' behalf.
And so right now I know that I'm sitting on the sideline waiting before a higher I know I have franchisees fast -- franchisees that are waiting to see.
What happens in the next sixty and nine -- days.
-- there's a lot of uncertainty.
Regarding that part of the equation.
Scott are you out there as an investor are you out there looking for the company is better saying I know it's a tough climb out there I'm going take to my advantage used to my advantage.
The fact that other CEOs are sitting on the sidelines that are timid -- -- -- to go in and steal their market share I'm gonna go eat their lunch while everyone sitting on their hands worried.
I'm gonna go get -- -- -- companies like that out there.
-- they're out there because we have capitalism and that's kind of been the root cause and it's I think that's gonna mean to Bart's point I think.
Technology is certainly an area are gonna see a lot of companies capitalize I love the word insurgency here because they directional as I mean -- were afraid to say how bad things really -- they're saying uncertain when the reality is you know what's gonna happen the government's gonna take more your money because they think they can spend it better.
But the one thing I do like was it is defensive sectors here.
Pharmaceuticals and utilities people got to spend money on those things that matter what.
I think those are two sectors that are good for 2013 yeah I'm Katherine and -- I mean there and they're out they're getting it done.
Our guys they -- much for joining us we appreciate it so coming up on.
