Racing Toward The Fiscal Cliff
Nov 29, 2012|
The Obama Administration is intransigent on the debt deal with Congress refusing to a deficit deal unless taxes are raised on the upper earners. Without this deal we all go headlong over the fiscal cliff like lemmings. Howie wanted to know who was afraid og the tax bill the first of the year.
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
We've been talking will be talking about via. The the -- the fiscal cliff you hearing there. Since the election. And I went and we've been mentioning is that the more and more. Corporation's publicly held corporations or our -- giving out the dividends or early. Source to avoid the higher taxes the BP the tax on dividends is is that really gonna go through the roof if they don't do something. -- for a December 31. And -- there's a of this it is and it's just within the the number now is up over -- corporations it's not just. It's not just -- Walton -- anymore Wal-Mart it's not just it's it's not just. At George Lucas -- -- Star Wars movies it's it's it's all these companies are doing. And perhaps you've heard from various economic sages the tax rates don't matter either economic growth -- taxpayer be conciliatory on the Wall Street Journal that I. Don't tell that to the companies and individuals were busy cashing out their investments are paying dividends to get ahead of the Obama tax. It's tax increases of January. Moscow a giant Wholesale Club operator announced Wednesday that it will pay a special dividend of seven dollars a share before the end of the year. That's about three billion company will return to shareholders that the Fed will only tax. At 15% rather than the 39 point 6% rates scheduled to kick in when the bush era tax rates expire next year. For households earning more than 250000. In next year you can have an open three point eight percentage points eight. In -- impacts thanks to the Obama care surcharge. Cost -- shareholders approved sending its stock up about 6% you know the irony here is. That is that Costco is is one of these companies are just read a story about the companies that give most money to Democrats and Costco was one problem. My -- my my -- the mail room manager said said the Costco that's one of the one of those companies we go way -- from now we got to go to -- -- ago what BJ's -- seen -- -- rather. Rather Costco shall we don't wanna -- wanna watch. But it but you know again these these are good Democrats but when it came to -- we came to put their money where her mouth as they. -- acts mr. speaker. The journal reports that as of Wednesday morning yesterday some 173. Companies have announced special dividends compared to only 72 in the same period a year ago. A recent Bloomberg analysis found that from September to mid November of 59 companies on the Russell 3000 stock index. Had declared one time cash payments to stockholders four times last year space. I found I find no precedent like this all going back all the way back of the 1950s Howard -- -- of the S&P. Dow Jones indices told the journal then again there's no precedent from the Barack Obama presidency. Exactly. Other companies like the manufacturer Leggett & Platt are moving up their regular quarterly dividend to be payable in December rather than January Wal-Mart that the same thing last week we told you about that. -- as casino magnate Steve -- summarized in a recent investor call when the taxes on dividends are too high -- companies don't distribute this the -- the shareholders don't get the dividends and Uncle Sam doesn't get that. So what usually happens is -- that the when the taxes go up they they don't -- -- the dividends. And when they -- that when they raise the the capital gains tax rate they don't get as much money to -- coming into the treasury. Tax revenue from capital gains in 1986 sort of 52 point nine billion. Then dropped to 33 point seven billion in 1987 because they raised the rates. In state largely flat for nearly a decade of boom began after Bill Clinton and Newt Gingrich agreed to return the rate to 20% in 1997. So this say this is again -- you know actions. Actions have consequences elections have consequences and and so. Actions by the government you know you could -- the government can do what it wants. But. You know the government can't control how people react to what the government does some like my question for you which you are you doing anything are you trying to prepare. For -- going over the fiscal clip for you trying to are you trying to do when -- thing. Two YE BU one you are you trying to unload in the ex boxer properties so you don't get -- with capital gains. Are you wore on there are you are you were setting the setting aside Monday. Here are there to pay for higher tax -- when I just it I told you last year recently turned 59 and a half like queen now -- 41 K. But I haven't Harold. And eight at -- used -- -- pay off. The the the apartment house that the male manager hasn't framing. And so partial excellent piece that kept giving money that he you know I still kept contributing to a 41 K I got the match. Somewhere element Japan. And soul so I was up I was up again to you know. One model large amount money but a small ma -- -- back up to again and I thought to myself wait a second. Why am I keeping this money in a 41 Kennedy when I'm gonna have to pay a higher tax rate. In the in 2013 -- that three point 8% on the Medicare packs away just so I just so Monday. Were to Monday night you know Monday night when I come back from Florida mostly about on the flight up Monday night recently got back on the phone the BM hardware in my 401K. And cleaned at all. Cleaned at all. We're gonna save a lot of money no. But I don't wanna give any money. To Barack Obama but I don't have to get so it's it makes me. It doesn't save me a lot of money but it makes me feel. 18774694322. And I have a question me. You think about mr. Geithner and he was acquitted but the game winning clintons' cat it was Paul Rubin and Summers and greens and. I don't think it was in the I don't think it was in the cabinet he was they had a they thought he was ahead of the New Yorkers are. Well yes but I think even he was involved with something like that long term capital management. And I remember you reading about but like that he didn't see that comes down to where he qualified. What -- used to connect that they -- OJ I mean there's something bay even more appropriate in this I mean this is a guy whose whose eight at -- cheat. He he he he worked for the World Bank. In the World Bank used to pay people they they wouldn't take any money out but they would include extra money that you would have to pay the government for Europe. Social Security. Pay you know payroll tax your income tax etc. chatter. If he -- he didn't pay any -- Axis of knowing Kevin. You never had any any also took tax write -- that was not entitled to. Such as claiming that his kids say he hit his kids had gone to summer camp overnight summer camp. In he claimed he got a tax write off for the Mets and mean and everybody knows that you you don't get a tax write off for. When you look at Utah and yet now now he's running around telling us that you telling you what -- that we have to pay higher taxes. For the good of the country. Yesterday that people understand that we've tried my aunt actually before and we haven't said -- send my putts actually had it 90% ninety spirited. Right candidate that you you weeded out there and more work to -- out. -- ability is not able to make this thing that we haven't been down that road before it something else. You know what one thing about that you talked about the Rolling Stone the other day why did they write that down main street. Because they were in excise tax excise. Got it yeah. Exactly. You know they had located at the end that so that one bit. Now it now I am I mentioned the story yesterday that the the number -- -- them the British raise their tax rates what are a year and a half ago to 50%. Tariffs of top marginal rate and suddenly the number of people was claiming that they made more than a million pounds in the UK declined from 161000. To 6000. Either people found new ways to shelter early just screwed. Out of the out of the country and now. Now they cut it 45%. Again and guess what it's up to that this is the number of -- quote -- millionaires in Britain is up to temp files. Thanks for the call -- a 18774694322. What do you do when to was there you are you doing anything to what try to beat beat these. Obscene tax increases that are coming our way. I'm how we card. 1877464322. -- state Fannie and just a semi any mentally you know it really interest in question. Suppose. That the powerball winner for you whoever it is in the Arizona -- Missouri. Doesn't claim their winnings until after January 1 how much would it cost. What that is that's an excellent question because. I think it would I'm sort 280 million the tax rate gap often happen. Is gonna walk from thirty that you're in your in the top bracket obviously fear. Hundred. So yeah you're you're you're more you're pop marginal income tax rate go from 35. To. 39 point 6% -- round off 5%. So that's nine million box nine million box cluster extra. Plus. You get the three point eight person you get the three point 8% -- Medicare. Packs. Sold that's another. Seven million. So -- why if you wait until these until January 12 to claim your money you're gonna you're gonna get whacked for an extra. Sixteen million box. In taxes. Five awaits us how we rush talked about a potential assault by the government for one case. Yeah I -- I heard he was talking about the it's open in time magazine I actually went to what the time magazine couldn't find what he was -- when he was talking about. Somebody said they want to buy all the 41 -- and him and make them into just. Do you give you -- wants. In return like you know please. Now I'm I think I'm gonna follow your lead and do something something with the money -- turn 59 and a half and seven weeks I think it's I think you you know you really I think five await your -- -- got screwed. You're you're you're gonna be about three weeks too late so you're gonna have that you're gonna have to pay. You're gonna have to pay. 59 and a half you don't get the penalty. You know get the 10% penalty that you get to withdraw on the money before you turn 59 and a half but your you organize if you gonna have to wait until. 2013 so you're gonna get hit four. That you're gonna get hit at the 39 point 6% increased. Pop for eight rather than 35%. -- it's gonna cost you some money just because you were born three weeks too late. Our generation was told to save save save now this one does it in if they attack for one k's I think -- will cause a semi revolution with the boomers. I agree I know people ask me to replace one that you just switcher money to watch that you just which your money to while Roth IRA. You know what happens -- what you what that means is you pay -- you've paid your taxes. You aren't too much money for Iraq iron nine right I I don't action I don't see any but I think you -- switch money I think you have the option -- of us which -- money to hire a -- by our -- monitoring comes over a certain amount right but even if I did. It's semi and come wasn't aware of certain amount I could switch to a Roth IRA do you do you trust the government. The government social the government says will we want him we will take we will packs -- fiery do you trust them I don't trust them. I'm afraid I'd pay that I'd pay out that the you know the 35%. You know -- regular tax rate in the I would and then a couple years down the road it's it would you know what we're gonna taxed the -- by RA anyway. We need the money. You know we got to be illegal aliens that need some welfare. I'm not I'm not I would I would never switch money over to fire I'm getting everything I'm getting everything out that I can. One -- what an idiot you know not pay Medicare and winnings -- the -- why do you say you don't pay Medicare and winnings. It's it's income. If you gotta pay you get a pay an extra if you make. 250000. You gotta pay three point 8% yet pay a three point 8% a surtax Medicare surtax. I think that's right. 18774694322. Taxes are recessed for the year the prizes one okay so are you okay. You. I don't know maybe maybe maybe maybe that's true. Or maybe you're gonna change the rules remember they're not supposed to change the rules after run -- you know you know exposed -- have retroactive. Laws passed. But I seem to remember of that that they didn't pass the twenty the didn't -- from 1993 tax increases until the middle of the year in the packs of war -- retroactive to the start of the year. But they weren't retroactive. In the 1992. As you may were cola. Hillary Clinton. Cashed out of the rose off form. Before. Before somehow one decided that cash out in. On the last day of 1992 was if as if she knew that the taxes were going up that you wanted to avoid paying the taxes. 1877469432218774694322. 401 k.s and IRAs are going to be gone reed business allowances says will will keep -- we're gonna keep an eye on this obviously 18774694322. Pat you're next with Howie -- go ahead pat. I we don't like you I wouldn't trust this administration for any dignity and some -- like -- situation. Our executive order -- and bought around out there. I would trust without adding I'm sure but money into Iraq right now yeah get on the Internet and what better person just -- if you convert. If that happened December and about what Jerry what do -- senior forward Jake. In essence the government's taken alone all of you because pitcher and treasury the certainty is a bit of maturity out of there -- automatically. There's a lot about your money they all spoke at bat and won't be desperate to export. I mean my god and you don't you don't -- it would capital gains tax increase. Prix single turning in history has lower revenue into the treasury. -- would not accept. -- you know what I think I think you know I think that Barack Obama doesn't really care about lowering the revenue -- about punishing people who who worked hard you know. It's exactly what it is now -- extreme hatred toward accomplishment and achievement. These child who those people will do whatever era of partnership of the social of the -- -- Yeah I I I agree I don't I you know that you -- I think you wanna just get this much W cannot that's I mean. I look I'm not a financial advisor you do what you wanna do want to tell you what I've done you know I'm just trying to I'm just trying to watch. Get egg I wanna get out of their cross out of a cross hairs of these people you know. And out like I liked -- I went there might be and -- -- -- -- all those zeroes you know we're used to be money it's all -- now I felt good about that. Keep your next with how we cargo ahead keep. Are caught and Eric thirty -- years. Not all I wanna I don't RG a LEN that they aren't in I did the -- yeah. Why all. I first thought that was pretty drastic in -- match. We -- back to our our tax credit are more huge yeah. It's a rational. I think it. Apps are actually at the end of the year yeah. Like all -- -- added that aren't here are Arctic -- Port. Or are at the yeah. Aren't about to bail out -- yeah. Over 200 did you -- out. Well I mean a lot that's what a lot of people are planning to do keep you know -- mean the -- -- always somebody -- there's only so much you can for -- the blocks you know. -- -- -- By -- I I don't small why do almost like you know I have a a little LLC but it's just did you know just put -- them the royalties and I yeah I don't have a small business either. I don't I I just I don't I don't trust these people like and you know they're talking now they're just heavily you know headlines. You that you read about the mortgage deductions may be on the table. Don't know is it you know where are they floating trial mobile phones or are they serious about this there really would be a an insurrection if they if they did something with the the the mortgage deductions but. I don't know -- immediate these people the these people are not not our friends they they they they don't open where Barack. What we're just people to want to beat that -- to pay for their friends who don't work they don't like people who work that's where it boils down to. 171. Thanks for the call keep 18774694322. Now car.