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Bulls & Bears
This week Brenda Buttner was joined by Gary B. Smith, Tobin Smith, Eric Bolling, Jonas Max Ferris and Steve Murphy.
Economic Fears Mounting After Senate Democrats Punt Tax Vote
ERIC BOLLING, FOX BUSINESS NETWORK: Why are we waiting at all? We need answers right now, we need solid tax structure and we need to know where taxes are right now. That's why small businesses aren't hiring: they're not sure what's going on and what's going to happen in the future and they need these Bush tax cuts to be extended right now - not later, not after we find out who wins the election. The economy right now is at a very critical point. It could turn around and get better, or we risk a double dip recession which would be terrible, extend them now or all bets are off.
STEVE MURPHY, DEMOCRATIC STRATEGIST: I agree that Democrats should have taken action now. We need to get rid of the tax cuts for the wealthy right now, to show the country and the world we're on the path to restoring fiscal sanity, getting back to the policies that worked well in the 1990s. I think that we should get rid of the bush tax cuts for the wealthy right now.
TOBIN SMITH, FOX BUSINESS CONTRIBUTOR: The issue always comes back to the small business people make decisions in the long-term segment - particularly when you're making an investment, which is really what we're talking about here. This is about the economic state of entrepreneurism, which I'm afraid the current administration doesn't understand or doesn't respect.
JONAS MAX FERRIS, MAXFUNDS.COM: They had a clue in the sense this has been a ten-year plan. It's a very certain environment; they're going to have their taxes raised next year, if nothing's done. What is uncertain is that there's talk of extended this or that part and that is not helping. They should be clear and say, yes, these tax cuts are expiring as planned. Here is our tax plan for next year, so you can plan ahead and this tax thing is fine; as far as business, it's primarily income taxes and capital gains taxes, and you look at hiring and lowering the cost of hiring employees, which we're alluding to, then you lower the pay roll tax rate for a while during the economy. Let these go and kick in with new taxes.
GARY B. SMITH, THECHARTMAN.COM: Once the marginal tax rates change people think they're going to be there in perpetuity. If you ask the average man on the street "hey, remember ten years ago, didn't you realize these tax cuts were going to expire?", they would have said "huh, what are you talking about?" If the tax cuts are not passed immediately, people are going to see that as a tax hike and that's essentially what it is. And what happens when you see less income coming in, you start to hunker down.
Obama Reselling Health Care Law as 61 Percent Say Repeal It
GARY B. SMITH: I've come to the conclusion when he was giving the speeches on health care, he must have been reading the teleprompters backwards. Everything he says, the opposite happened. Remember, he said your premiums should go down for a family up to $2,500 or so. Guess what? My health care insurance policy went up 20 percent in the last month or so. Remember he talked about bending the cost curve? The CBO already came out and said the Obama administration was only off by $110 Billion. Remember he said you'll get to see your doctor? In Texas mass exodus of doctors leaving the Medicare program. So if you take everything that Obama said and flip it around, then you have the real facts about Obamacare.
STEVE MURPHY: National polling showed that opinions on health care was a little more positive than negative. The health care law is going into effect right now and what we've already done is very popular getting - rid of the donut hole for the pharmaceutical drug benefits for senior citizens under Medicare and the tax credit for small businesses, which everybody has available right now, and that every state now has a plan where the so-called uninsurable can get covered. That's a great step forward.
TOBIN SMITH: It would be a wonderful step forward if the other facts were not happening. If you just go with actual companies - not surveys - about 60 percent of large businesses saying that they're going to be charging a 15 or 20 percent additional premium to their policy, to their employers because they're laying off the extra cost. Where does the extra cost come from? The consumers.
JONAS MAX FERRIS: There have been double digit health care increases for the last 20 years and not just Obama care.
ERIC BOLLING: This is what happens when you rush through legislation. The reality is that study shows 14 percent increase in premiums in 2010 from over 2009. Gary B is 100 percent right: they've bent the cost curve up. And now you cannot get a premium policy for a single child. It has to fall under these massive family plans.
Taxpayer Bailed-Out GM Now Making Political Donations
GARY B. SMITH: I tell you what, we should have a special segment on just things that the government is doing that are just totally ludicrous and don't make any mistake. GM is still owned by the government - or run by the government - and still basically owned by you and I, so, why can't they just stick to making cars and returning our money, it is beyond me. Why are they getting into the whole politics game? Just try to make a car better than a Toyota for crying out loud and return our money. No, it's the same stuff as before and it's ludicrous.
JONAS MAX FERRIS: First they came up with the Pontiac Aztec, a disaster. I don't like the whole tax system, but the bottom line the companies get benefits by doing this and look at the benefits gm already got. You want them to have regulations that are favorable to them and all things and you want them to play a role and we're shareholders and we want them manipulating.
ERIC BOLLING: We gave GM $50 billion and are likely lose $30 or $40 billion.. and it spends our money on political campaigns?
STEVE MURPHY: GM is not giving any political contributions; corporate contributions are prohibited by law, this is a political action committee. Do you want the government running GM or not? Do you want the government telling them what to do or not?