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All right despite its not a criticism coming on board deals had to get out of -- we don't get -- -- done very quickly the president is set to sign a bill this week to make the spending cuts.
Permanent but what's not being talked about a lot but we'll talk about it here are the tax increases that may already be dragging.
On the economy.
Neil -- -- here's senior vice president managing editor -- Fox Business joining us now let's talk about tax increases could -- you know as you guys.
They've worked very long day out.
-- -- and -- Shapiro in the green room he's been years since her in the morning it's a want -- -- the cast from dawn of the dead.
Man oh man it's been thinking if you know they're -- all the and you actually work with -- guides had to leave his -- -- In the morning so it really is desirable is that -- The veterans of.
Well I think we're talking about and I have no idea -- increases again and we just talk about the health care tax write kicked in this year.
And that that alone will be a drag on the economy.
Well you know that's a prevailing wisdom you think about it the payroll tax so you know went back into effect and that was thought to have a prohibitive effect on spending we haven't really seen -- to the degree.
Many -- You know that you use of sort of reverse argument -- taxes.
Didn't go and if these -- income rates and other surcharges for health care.
Didn't kicking and who would do you economy do better -- -- will never really now.
But we already know that a lot of people are sort of playing fast and loose when it comes to their own.
Medical coverage about what would medical options are -- -- taken and what plans to be undertaken as we've seen from our -- premiums here.
They go up and they go up pretty Smart leader and -- we we work for a benevolent boss who tries to.
-- those increases but the fact of the matter is.
They are nationwide and they are cleared and a direct result.
Some of them a lot of these new laws kicking and a new requirements to.
Now you mention is -- when you're -- of -- tax increase is started to wonder whether either one of these things the sequester which was the automatic spending cuts or the -- tax increase.
Whether maybe too much was made of both in other words that they may not be as big a deal for the economy.
President -- -- -- you -- to sequester it's the end of the world and -- Rosenthal it's not horrible and maybe the same.
With the -- or -- you know I mean we discuss is -- -- I was not a fan of the whole payroll tax had to begin with because I thought.
What it would ultimately cost some but it would ultimately -- you really wouldn't move the meter much but you know.
All things being equal when you get used to something -- and for the last two years a lot of folks got used to that.
And when it was taken away it was a big giant -- know you've you've you've talked to Wal-Mart itself to Costco you talked.
So a lot of -- so they noticed it but but but in the scheme of things it was not as disasters that have been presented.
As far as the sequestration cuts.
All the more so -- I mean we're talking numbers that were in the scheme of things rounding errors to rounding errors.
I don't know how anyone could have possibly conceive of the notion that this would run the economy to a halt -- to -- was just no way mathematically.
We did the map backwards on our show but at which time I'm sure you guys are -- Men and who we you'd realize that in order to have the impact they were talking about rather to 86 billion these -- have to be more like.
Billion and of course that was not the case.
But we still have a White House that will err on the side of raising more taxes instead of cutting spending that that safety well I will say as well they and that it's this is something has been a global water because they're all doing it if you think what's -- on in Cyprus.
Much of that is built on just finding more creative ways to raise money been cut spending.
And it's going after bank accounts that obviously the bank accounts of oligarchs and Richard folks.
It doesn't take away from the fact that they are going after bank accounts.
So very creative when it comes to finding new ways to get money not very creative -- But in fact not do much of anything to save money but we have Bob -- raised it it seems it's a foregone conclusion that the mortgage interest deduction for particularly wealthier Americans will disappear -- you know.
Even -- -- the last few years it's been paired right and then and -- -- it's been limited.
In terms of the percentage of deductions are allowed anywhere -- of resisted some backward tightening -- -- But I do think it's a matter of time and then whether it's charitable contributions mortgage deduction got to -- all that.
Is is is going to be limited and they're gonna keep limiting it for the world to do but they will discover is that they -- -- they haven't Cyprus.
That you can't get much out of that well so you have to go to other wells you have to get up other folks.
Well but they're already finding that that that stealing 40% of rich folks money.
Is -- covering the bills for that tiny island nation so I I think what's happening there.
There's a preview coming attractions here and I know you and -- -- and get into this about whether you can create a crisis here but it is not a stretch to say that.
When you start robbing assets from folks.
Thinking covers your bills and -- -- that you have to start robbing from other books and that's what they're gonna come to discover.
Do you think it would happen and it or is happening that you talked about this already maybe in different ways to different cities that are Ennis opposed.
-- necessarily taking.
Money out of your bank account directly but is there all the way they have got to tunnels they are doing it unionize as someone -- when I was on a different -- right who we were -- We were talking about the fact we Zhu has taxes on assets -- I really loved about -- He had no idea when he -- that Connecticut incidents -- that was -- that there was at three point 8% Medicare surtax.
What I loved about him he was totally oblivious -- and -- everybody said on whatever.
But that he didn't miss it but a lot of folks will and I think that.
That idea that it -- as well Cyprus and taxing assets that would never happen here it already hit its -- it is.
Yeah yeah yeah and it happens a different way right -- large bar America will wake up wind -- -- fifty would do roughly 50% of people who pay no net federal income tax credit card and something even if we -- Can't you who I was look it is simple math doesn't mean you cannot pay for what we've got.
With the system that was -- when there's a new leader.
You know cut back on the spending apparently was very little appetite for that match.
So that only means raising taxes are finding more creative ways to get money whether it's a surtax on your house whether it's a surtax on your bank account.
Your pets -- -- mother in law whatever cloud you're gonna need to.
-- well it's unfortunately we're out of time commitment on the -- -- time goes here when you're off hateful you know didn't try you know.
That's always straight that got data is about but I'm off the next few days you know what it's come up and says that he asked to -- -- record you don't we we wouldn't you wolf it would take it a little break -- -- -- much to say we had a full cost of a freeze out.
Is on with nailed don't human that he can't tell you -- I can so your movement when -- Whose great DeLia we asked the question are you didn't abuse it would mean that we will also out of your house we will yeah I -- -- -- colored paper do you stimulate the moderator refrigerator with redundant to.
When he's still going to be noted significant ground if they could still comfortable thank -- deal.
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