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Cumberland Advisors chairman David Kotok argues the economy is weak because of tax increases.
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To work -- I should -- Let's get back to David coat off still -- Are we got -- the sky's not falling let's move away from the spending tough issue I wanna talk taxes.
That is my opinion -- I think that the economy is dead flat really very very weak because all the tax increases what do you site.
I agree -- you you we we we tax the wealthy Stuart we took one or two -- out of the growth rate.
Wealthy people don't like to pay more taxes but take it does it impact they're spending patterns -- consumption patterns they go -- about their business.
We then put this 2% payroll tax on working Americans 134.
Million of them and we tax the first dollar are up to a 113.
Thousand.
That was just smack in the gut by Washington.
And you cannot expect to expand gross income jobs earned income.
When you raise the tax on it and do so in a permanent shift it was -- terrible terror.
-- policy I got that number 8:30 eastern this morning in January personal income down on a three point 6% that's a big -- was that because of the Social Security tax increase.
Active.
Part of it has to do with tax policy payroll tax policy part of it has to do with the uncertainty about Obama care and cost.
That the job formation income creation engine in the United States is in the small -- independent businesses.
Not the big companies.
And they don't know what to do they don't know what the health care packages are gonna cost to what they're gonna look like.
That they are not certain as to how to proceed they want to proceed by the way.
But they don't know which way to go and how much so they're sitting on the sidelines they're readying.
-- decisions but not implementing.
One last one -- fast David one week from today we get the unemployment report you think we might go back to 8%.
It's very possible thing to go to 8% the employment recovery is weak what the actual number mobile depend on how many people quit looking for jobs got it.
David -- talk Kabul under advises always one about favorites like very much don't appreciate it thank you.
