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Bulls & Bears
Extending All Bush Tax Cuts Gains Steam After Tea Party Victories
The party after the Tea Party. Hopes gaining that huge wins for Tea Party candidates this week will turn into a big win to extend everyone's tax cuts this year. We're already seeing more Democrats hop on the tax cutting band-wagon, so will the Tea Party victory be a victory for all taxpayers?
ERIC BOLLING: I hope so and I think so. We saw it with the big wins in New York and Delaware and then we saw a lot of House Democrats say, you know what, let's extend all the Bush tax cuts. I think that's really good news because the economy needs those cuts. If we don't get them, we could double-dip into a recession.
JULIAN EPSTEIN: A Gallup poll this week showed that the public overwhelmingly supports the Obama plan to extend the Bush tax cuts to 98 percent of Americans but not to the richest 2 percent. The economics of that are pretty decent as well. We have a recession now that is credit-drive and consumer spending-driven, not productivity-driven. If it was productivity-driven, I could see extending the tax cuts to the richest 2 percent. But this administration is trying to put the money into the hands of the people who are going to spend it. That makes good economic sense. The Tea Parties want to blow a $4 trillion hole into the deficit by extending the tax cut to the richest 2 percent.
TOBIN SMITH: There's a limit to how much government can improve our lives and there comes a point where it gets too big and starts to hurt our economy and prosperity. The Tea Party is going back to sound economic policy that includes a reduction in government spending and extending the tax cuts for everyone. That richest 2 percent pays 50 percent of all taxes.
GARY B. SMITH: Any incumbent, Republican or Democrat, who is not thinking about a smaller government and lower taxes is in trouble. Julian brings up polls, but remember, 40 percent of Americans don't pay any income tax! The better poll is, what does the country think of Obama's economic policy, and most agree it is unfavorable. I think there is a groundswell here and I think it's only going to grow as we get closer to November.
JONAS MAX FERRIS: There has never been a point in American history where somebody with so little experience can get so much of the vote simply by being for just two things: tax cuts and spending cuts. Cutting the size of the government is not the most popular idea—that's why it grows every year. The takeaway for both parties should be, we can get votes if we are for cutting spending, and they should introduce some initiatives to do that. I would be for spending cuts before tax cuts.
New Report Shows $111 Million in Stimulus Funds Created Only 55 Jobs
(BEGIN VIDEO CLIP)
NEIL CAVUTO: “So you think they should just put the spending shovel down? Because Joe Biden today is saying, keep the spending going, stimulus is working like a charm.”
BERNIE MARCUS: “I don't know what [Joe Biden] is smoking.”
(END VIDEO CLIP)
BRENDA BUTTNER: Home Depot's co-founder Bernie Marcus not pulling any punches with our own Neil Cavuto on the Fox Business Network. A new report shows 111 million stimulus dollars only created 55 jobs in Los Angeles.
TOBIN SMITH: We know that “stimulus” is just the government taking money out of the private sector and allocating it the way it thinks is best. This one may be the record. $2 million per job, and it's not an anomaly.
JULIAN EPSTEIN: We can't make economic policy on little economic reports like this. Consider the economic data. Before stimulus, we were at negative 6 economic growth. Now we are positive 3. Before stimulus, we were losing 700,000 jobs per month, we are now creating jobs. Before stimulus, we were at 6,000 in the stock market, now we are at 10,000. The big data all show that stimulus is working.
GARY B. SMITH: Julian talks about all of the GDP growth. Well all of that stimulus money, where the government robs Peter to pay Paul, goes right to the GDP. But the fact is, unemployment is up since Stimulus, household net worth is down, and we're at half the growth we were at in the recoveries of 1974/1975 and 1981/1982.
ERIC BOLLING: This week we learned that 14 percent of Americans are living in poverty—that's the highest since 1960. Also, August saw the biggest increase in foreclosures. The stimulus is not working!
JONAS MAX FERRIS: This is not good job-building stimulus. Paying people to clean roads actually creates more jobs than building roads. There wasn't a whole lot on that bill that creates massive amounts of jobs. It wasn't a jobs bill. That's why unemployment is still so high.