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Bulls & Bears
Senior Democrats Pushing to Extend All of Bush Tax Cuts
BRENDA BUTTNER: A tax cut stunner in D.C.: Senior Democrats said to be splitting with their party leaders now pushing to extend all the Bush tax cuts. This after a report showing that the economy is slowing down, home sales are hammering down, and more CEOs putting down the White House's plan to fix it all. Intel's chief joining a growing list of executives calling for tax cuts. So, are they all right?
GARY B. SMITH: Yes, they are absolutely right. The government can do one of two things to help business. They can either get out of the way of they can cut taxes. Everything else that they do just gets in the way. Obama is the most anti-business President since FDR. If you look at his two biggest plans, health care and stimulus, what are they all about? His three pillars: government spending, government regulation, and government control. That's anti-business. If he would just say, we're going to cut everyone's taxes and go on holiday that would be the biggest gift he could give.
CAROLINE HELDMAN: Obama is an easy target but the real target here is the economy, and changing the Presidency or Congress is not going to jumpstart the economy. He's just being made a scapegoat right now. The fact of the matter is, he passed corporate health care, he passed a watered-down economic reform plan, and profits are up 34 percent under the Obama administration, so businesses really have nothing to complain about.
TOBIN SMITH: Profits are up because overheads have been historically cut. We fired about 10 years of people in a 6 to 9 month period. That had nothing to do with Obama except for in maybe one way: they knew all of his new taxes were going to come down on them. As a small business owner it was easy to say, you three are out and I'm not hiring anyone new until I feel that we have a stable economy. Obama doesn't understand that.
ERIC BOLLING: It's very important to note that the extension of the Bush tax cuts may only be one year, and small business owners make long-term planning decisions based on 5 or 10 year projections, not 1 year. The Democrats are going to say "We're in favor of extending the Bush tax cuts. We're fiscally responsible. Re-elect us in November." And then three months after that, they'll say let them expire at the end of 2011.
JONAS MAX FERRIS: The Intel CEO wants corporate taxes lowered. He doesn't really care about the Bush tax cuts. And our corporate tax rate is much higher than many countries. Also, we have a bad immigration policy in this country and tech CEOs want better educated immigrants to get here more easily. They'd also like to do what China does, which is incentivize companies to open factories. Those are things that CEOs of companies want. Income tax cuts is not high on that list.
Firestorm Mounts as Debt Commission Co-Chair Talks Tough About Social Security
BRENDA BUTTNER: Fire him now. More Democrats calling for Alan Simpson's hide. They're ticked off about what the President's debt commission co-chair is saying about Social Security. Quote: "It's like a milk cow with 310 million…" well, it rhymes with 'fits.' Toby, you say he's right, and we need more people like him to tackle our debt mess?
TOBIN SMITH: Of course we do. Social Security was started when average life expectancy was 66. Today, if you make it to 66, you'll likely live to 85. We used to have 44 people in the workplace paying for 1 retiree. Now it's 3 for 1 and in a few years its going to be less than 1. That math doesn't work and Alan Simpson says it like it is.
CAROLINE HELDMAN: The two biggest increases in debt have been under Republicans: Ronald Reagan and George H.W. Bush. With Social Security, we have until 2037 to reform the system. I think everyone agrees it needs to be reformed. Maybe make it need-based or maybe less age-based and more ability-based. But then we would have to fight this massive discrimination against elderly people across the United States.
GARY B. SMITH: At some point Obama is going to have to take responsibility. Social Security is an issue. At least George Bush made some attempt to reform it by trying to privatize it—putting some of it in the stock market and some of it into 401Ks.
ERIC BOLLING: Social Security is the third rail that no one really wants to deal with. Simpson is the co-chair of the debt commission, which is a lame-duck commission that makes recommendations to Congress. It's a colossal waste of time. Anyone can say anything they want out of or to that commission. Their recommendations aren't going anywhere.
JONAS MAX FERRIS: Both parties have been in control of the White House and Congress and neither of them make the very simple cuts that need to be made to solve this problem, like pushing the age back. It's just math problem as Tobin said and it's very manageable, but no one will touch it.
Author of New Health Care Law Says It Was Waste of His Time to Read It
BRENDA BUTTNER: A Fox exclusive on a new health care outrage. The senator who wrote the new health care law is now saying this: "I don't think you want me to waste my time to read every single word in that health care bill. You know why? It is statutory…it is written in statutory language. It takes a real…real expert to know what the heck it is. We hire experts."
Eric, you say this is more proof we're all going to pay for it big time.
ERIC BOLLING: This is so aggravating. The chairman of the committee who wrote the bill and jammed a trillion dollars down the American people's throat felt his time wasn't well spent reading it. This is a bill that's going to encompass one sixth of the economy. We are going to pay through the nose for this.