Transcripts For FBC The Willis Report 20121205

Iim gerri willis. Getready. A flood of obamacare rules re coming, and it will take a mountain of paperwork to get in all the fine prnt. Fox buinnss liz macnald this year. Lets break it down. You know wh i lov about congress . I donreally le it. They pass a law and th its sort of like the irshas to do it. The irs hato enacted ad oversee. Anthe joke is that the iris is operating on pneumatic ubes. The amacare law is going to basically blow a lot of circuits and burn a band with. So the deal is made if you hae investment income, Capital Gains or dividen, not only do you have to pay taxes when youou cah out, youre going to have to pay an extra surtax on top of that. So whatere seeing is the ira saying, we have to a shoot ibly 1509 pages of rules. It becomes a little bit about this and then it diappeared. Apparently it disappeared from the irs. All of a sudden out of the blue have that already april april 15th. Nancyeli said we have to pass it to see whats in it. Well now were seeing whats in it. The rules are supposed to help la 318 billion over te health reform. O help pay for the thing is, there may be a brannew form tht taxpayers have to deal with t basically calce the mass. It sounds like a migraine. But ill tell you sometng. Heres th kiker. This surtax is supposed togo on investment income. What theyre struggling with bell is, wait a second. What about rental income. Rental income is a big deal. Ere those. Coach rental income fora house or apament or whaever. Up to you sometng. Thats something that is nt a hot debate behindthescenes. It wasnot taking care f, and i just read freit appared on your show right now. Read through the irs what theyre saying in what is called the feder register. En you read between the lines, when you read it there is no mention of rental income. Congress may have an oversigh hearing. This is sometng that the viewers will have to stay on t of. Unfortunely its noteing addressed riggt now. Gerri to be clear. You area irs epert. You have testified i front of congress, alked about this publicly. Obviously you done a ton of reporting in diggingn thi topic. How can we expected to be adept to all these w rul so quickly . Its going to take accounts months and onths to get there arms around al these new rules at may go into place. I dontike to talk about myself, but i was asked as a journalist to come in and talk about iras eform and tax reform. It was an uncoortable position to be in, t when my source of the iras toby time and agai th its very difficult for the congress to alwa ftal as ey do every yar with the tax c anywayand now obamacare is a big, big thing tha the harris isoing to have to digest and oversee. In tlkig to te i audits anreveue agents, they do ay that theydont think thre will be a lot of penalties and fines. At is thesilver lining. What is at issue is whether or not your rund checks will be tan if you dont proly pay the taxs. Gerri wel, thnk you for coming on. Always great to have you. All right. Magic bed very dust. Talking about politics. At is of the whte house is leveling the republican unteroffer to avert the fiscal iff. President obama try this and saying there is no deal without tax hikes on the ridg with more on this,republican congresswoman dianne black of tennessee. Welcome to the show. Great to have you. I have to askyou aout this story that has been reaking this atrnoon. Apparently the president will meet with what theyre calling progressive tlksw hst i think this is a lot of tlent. It will parade through the white house. The president will sit down with them. Are u getting the sense here that maybe the president is meeting with a few too many ople . Should we stet the job on the fiscal cliff . I could not agree more. Felt verydiscouraged the presidet this been more time c campaning thathe did of the begiing of his campaign. We need to have serious negotiations. We need our leaders, and the president was elected by the people. He needs to sit down now and the leader along with ourleaer, the speaker, and talk seriously about these plans. Gerri small busess, big business. The governor. Who is lef for t predent to talk to . Well, we also founthat the president was out at various bunesses encouraging the electric ted send it to its about what he wants. And that is not the way that you get a negotiation going, byy talking about this andthe public as he has. He needs to sit down with the leaderof the house and the senate and he needs o be the leader on this. We are not seeing it here, and its very, very discouraging. Gerri o what you torespondto what nancy pelosi had tosay about hostageting today. Pretty dramatic comments. Th is nncy pelosi. The republicans are sayg that rather than pasing that they want to hold it hostage, giving an additional ax cut to people maing oer 250,000 a year. That i not negotiating. That is hostagetaking. Gerri how would you repondo that . Wel i would respond by saying that it is just the opposite of that in my opinion. The hostagetaking right now is that this president has drawn a line in the sand. Hes onltalking out one side ts equation. We have crisis here in washington. Are spendg currently a trillion dollars more than we are bringing in. This president under hs first four years increase the size of our federal Government Spending by 25 percent, and now hes king for more stimulus money. Unfettered control. This really is a hostage situation, and thiis not wha the American People need. We have million americans looking f jos, searching for jobs. We dont need to add dditional taxes. Gerri coerswoman, look. The americapublic is goino blame your party, the republicans, some 53 percent sa the iscal cliff happens, every fall over the edge reblans are to blame. How do you square tht . Is a year on the ght t side, trying to do thigs. T the public certainly does not see your effort. I thi one of the things that is so difficult for me i that the media cannot not talking about you in particular. The general media has allen into this rabbit hole of only talking about this one isue. If we were to give the psident what he wants, the panacea. That is hepitfaf our problems. It only funds government for eight days. How can we be serious about staying focused on one thing in not talking about all the other issues. Spending is defitely the issue we must do true enitlent reform or they will be here for thpeople currently. Gerri nobody is talking about that right now. We cant get pas the basics get to entitlements. Thank you for comingon. You must come back soon. Appreciate your time. Youre welcome. Thanyou for having e. Gerri an absolutete pleasure. Coming up,i will be joined by moneyman wayne rgers for his take on the looming fcal cliff. Coming up on the willis report, does sped illed . W es this impact indivual trers . Break down at this means for your gerriwillis. Com. In the deh as it spirals out of cotrol. Chopping debt in half. To they have th answers for sog the nations debt crisis to mecca alo, a showdown between the epad aaa will he ne fuel cause damage your vehicle . The man behindegislaion to block the new gasole is us his take. We are on the case next on the willis report. Gerri my mom always told me that the world isnot fair, and expecting that is a recipe for frustration. Howevee, the unfairness in the stock market is a prlem that deserves fixg. Th is because the stock market does not bong to just one type trder,ut all of us. Highfrequency tradrs, professional, lightning fast trades preclude any real fundamental coices. They dominate the trading world these days. We are wid recognized a the folks behind the flash crash. May 6th 201 saw that on r air, the day the market fell inexplicably. 1,000 points and rally back nearly as much. Theylso brouht us the security gap and a myrd of other example of weird trings. We have many crshes every single day and because of them. Lots and lots of prrfessional traders defend there wais saying that provide liquidity. Who gets the short e off the ate, and it is not pretty. According to a study, the hief economist of the commodities tures Trading Commission highfrequency traders make big ofits of small retail investors. 3. 49 for every futures contract. The dahlin and to for Institutional Investor contcts. The author of the study concludehe marts were a ze sum gain in which ghspeed profits came at the expense of ohe traders. Not the only cana in the coal mine i thinke have to get a grip on tehnology. Highfquency trading. Night secrities, the flash crash. Nasdaq and facebook and all of these problems ar steamrolling, d there has to e soe orderly mechanism by whicheople use the technology according to well established rules. Gerri technology is just out of control. And regulators like treasury secretary tim githner and feral reserv chairma ben bernanke have written accelerating automation o the markets may threaten their very stability. In an annul report of the federal stability oversight cocil, the evolution of the markets could lead to an unintended erors cascading througthe final system. Th sounds like a big at disaster. I wa a system where regular investors can trade stocks and not be woried about coming out the short ed of thestick. T stock mkets were developed in this country as aechanism for raisin capital pricing assets lets get ck to tha. Coming up tomike in washington actually learn a lesson from florid next, how hrrys could be the latest victim in the fiscal cliff talks. The esident of the united way joins next. Im only in my 60s. Ive got a nice long life ahead. Big plans. So when i found out medicare doesntay all my medical expenses, looked at my options. Then i got a medare supplement i insance plan. [ male aouncer ] if youre eligle for medicare, you may know it only covers about 80 of youpart b medical expenses. The rest is s up to you. Callow and find out about an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardizemedicare pplement plans it helps pick up some of what medicareoesnt pay. And could save you thousds in outofpoet costs. To me, relationships matter. Ive been with my doctor for 12 years. Now i know il be able to stick with him. [ male announcer ] with these types of plans, youll be able to visit any doctor or hospital that aepts medicare patients. Plus, ere are no networks, and you never need a referral to see a specialis so dont wait. Call now and request this free decision gui to help you better understand medica. And which aarp Medicare Supplement plan ght be best for you. Theres a wide range to choose from. Weove to travel and theres so much more to see. Soe found a plan at can tvel with us. Anywhere in the country. [ le annncer ] join the millions of people who have already enrolled in the only medicare splement insurance plans endorsed by aarp an organization seing e needs of people 50 and over for generations. Remember, all Medicare Supplement insuran plans help cov what medicare doesnt pay. And could save you thousands a year in outofpockecos. Call now to request your free decision guide. That will be here for you now and down the road. I have a lifetime of experienc so i know how important thats. Gerri coming up, thwar over charitable deductions. Will they suvive he fiscal gerri oneourcof new revenues under disssion in the fcal of today limiting deductions forhe welthy, even charitabledeductions. Its a controversial idea that has cut and a lot of attention following a recent Washington Post oped. Overwhelmingly the charable deduction benefits the wealthy. Here to discuss,resident of independent sector and stacey stewart, predent of the united weight bothof whom met at the ithouse with the president. White house officials pleading thercase. I cant imagine having to better guess for this segmen i want to start wh this idea because it kind of blew awa when i saw. A major beneficiary for t charitable deddction, t i thought what about tht charities and all the people who do to ry on them for there good work. Lets start with yu. Enllus the, you now, who does benefitfrom the chitable deduction . Who does your charitiesserve . The noionthat the charitable deuction benefs the wealthy is simply thewrong way to think about thededuction when people give to charities, theye giving to families, struggling communities, communities that are struggling unemployed, oo many people who are losing their home still. Ingering foreclosure crisis. We are alking about communities of people who are the recipnts of these charitable donations. And so when e talk about reducing he incentive for charitable givig lets be clear about who get affected in the end. Gerri andyou gies some information that is very useul. For example, nonprofits and foundations employ 13 million people, 602 milillion volunteers provid8 billllion hours f service. Almost 2 million 2 trillion annually. Accnting for5 of u. S. Gdp. If not for you guys were wi thisll come from . Well, the fact is ttat e charitable does not get allthis money for individuals. The private sector. T moneyom itraises fees for service and get government funding as well. A combination of what they did. What worri us about this charitable deuction is tt people are thinking that this is about rich people. It not about rich people. That is wonderful tradition in america. Almost a hundredears ag congress decided and his wisdom that they went t encourage rebeto give more. They stimulae iving by creating acharitable deduction. It works. I will be stop making it work . Stacey, to ou. We also have some facts about what this will acally cost. If there were no churl ductions the cost of chries would be some 7 billion per year the expectation that annual giving would drop by 36 percent. What would tis cause the American Society . Talk to me about the services, the work that would not get done. Well, you have to nderstand that if there is a cap at 28 , youre right, we estimate that could cause a Nonprofit Organization 7 billion. That is the combined budget of many of our largest natinal nonprofits. We rely on, our commnities rly on ery single night for important services. Weve reduced the amount of charitable tone giving, tht is on toof the alredy existing cuts thatave been made and Discretionary Spending by the federal governmt and potentially more cuts in spending that elected to ome. Youre talking about federal support an privatesuppo being cut at the same time. Doub women are now of most vulnerableecommunities at a very fragil time i our natios economy. One of the tngs that is alo important as we have some Public Opinion polling that showed 62 percent of americans said they would have to substantially cut byy 25 t 50 . Gerri you know whats going to happen ithat deduction is ct the irony is this editorial writer was sig that i is sothing fr the rich. He end of the day the people o benefit are the poor n many cases. E openleter to the prsident we acknowledge and support the need to put our nati o a more sustnable fiscal pth ut are urged you to preserve the chariiable deductions powerful incentive for givi. To you. Did you meet with the president or with his people working for him . Did they give you any sense tht ey woulnot work toward taking away this dedution . Have to tell you, we have proposals from bothides of the table alking but getting rid of thisdeduction or at least remein it. The president has for a long time taken a position that in order to pay forvrious programs he would limit the deduction for people who ean under 00,0 ayear believe from 35 28 . That is not was on the table ghtnow. Whats on the table related to the fiscal cliff is a proposal to create a cap on deucons, all kinds of deductions. The charitable deduction t Interest Rates soared over deductions people can take. Wi they do it at 17,000 or 22,000 or even amuch higher number like 35,000, the problem the we s is that withthose of the deductions people wl take things because they benefit themselves. In thease of the charitable deduction, theare going to put out money in order to get a deduction. Someone gives a thousand dollars the market 350. If they lose tht iincentive there are ly gng to gve 650 to begi with. Itll lose anything. The organization that served the people in oursociety in communities of the ones hat will have to cut ck on their staff and will have to cut back. Gerri you know, what is using to me is if you take awayhis deduction, then he steps in . To haae to rely on vernment to step in . Will the government runtese progms where doeshat money come rom . We all knowhe answer to that. Yes. We all know the answer to tha. We know that t govnment is not able to stepin. Federal, state nd local level he governent budgets that are in crisis. Government budgets that are in deficit at every level. There is no other bacstop other than therganizations like us and othersho are serving thess communities, and that it is important to understand that we ve to take a fair and balanc approach. When announcing e all moneey to contribute to getting our fiscal hoe in order. We asolutely do, bu we have to do it on the spendg side and we have to like a t sources of revenue, all the sourc of revenue, not jut a charitab deductions to figure out how to get our fiscal house in order. Gerri i dont know if it will happeny the end of the month. We have a long way to go. Everyone seems to be talking pass themselves. Thank you for coming on. Apeciate your time. Great information. Thank you. Gerri likely be hurt the most of the deductions goal weight make up tongs top five. Food for the poor. Based in flrida using 97 of its billion dollars in revenue for its charitable commitments. For more infrmatonvisit food for the poor. The American Red Cross which we have heard a lot about recently in the wake of superstarsin the. This group has nearly 4 blion in renue but only takes in about a billion dollars a year and a natios. You can be one of thos donors by going to red cross. Number three, feeding america, the chicagobased chity takes about a billion dollars in private donations. 100 of its revenue comes from donatis, nothing from the government. Number two, we seethem ringing the bells of reality season. Foundation amy. This wellknown organization has 4 billion in revenuebut only gets have at in private donation the number one charity, we just heard from thepident. It is the unitd weight. Nearly 4 billion in private donations nationwide,almost all the groupssrevenues but only 85 percent of those funds go to charity. You can visit the webse. And coming up, aaa puts t an unusual warning over i knew blend of gasoline. The burro government wants you to srt using t. Will it damage yourcar . This florida ve the answer to fixng our naons de crisis . Wayne rogers is here with wat the Sunshine State is doing gerri big spending bureaucrats on capitol hill nt manage to getthe ballooning National Deficit under controrol but one governor is tackling this head on. Republican rick scott chopping floridas debt in backtoback years for the first time in nearlyhree decades. Relievingaxpayersy 2 billion in two years. Debt 9. 2 , outstripngte 9 return for muni market as whole. Is it time for bwigs to takeote . Lets kayn rogs. Thank you. Melia e. Gerri great to have you here. You say Governor Scott is doing a fantastic job. Thk he is doing a very good job. I dont kkow how fantastic it is. Is doing a very good job he reduced defit in florida by 2 billio at is amazing by itself. I dt think thereis another state like that. Yes, has he cut back on certain thgs . Yes. He voided some of the bond issues, which were, you know, not necessary. You know whats wonderful gerri, people aways say we neneed this orwe need that. Whois mking the decis that we need this . You know . Gerri i find the general assumption is that more spending is better spendg particularly in some of the statehouses. It is insane. Gei it is insane. Flidhas a balanced budgetmendment. Do that help them . Yes it does. Yes it does. Even tte United States congress can get a budget done. It has been three years in the senate. They can do it. They should pa a law in the federal government tat says they ha toave a balanced budget. Gerri loo at some of these numbers, National Debt per capita, floda looking pretty good here. Ep in mind, the feral debt is the 51,90 per person. They set the benchmk. But in florida the number closer 7,000. Get a sense how other states are doing t. Thmore you dri that number down, t better off the states will be in t pong haul, right . Correct. Gei isnt that what were looking at . Correct. Gerri pare back the programs that are fat and bloate corrects. A lot of people use the word fair. The president has done that. Everybody pay their fai share. Who is the person to determine what is fair . It is an arbitrary rule gei you said over and over, and i think it is interesting. Why not 260 . Why not 249,800. Or 2 1 2 they reach up out of the sky d grab a numbe and try to sell it. Gerri t is arbitrary. Yeah. Gerri i want you to he fromick scott himself about his own austerity. Here is what he ss . Our tax are high enough. We have eugh revenue. We have to live within our mean we do it at state level, we shld do it attthe federal level. Gerri that is the payoff, right . Why cant we do this . Why cant washington have the same kind of attitude as a rick scott in flida . Thereere lots of othe governors across the country doing the same thin because the rules in the house and senate are different. They dt li by theame rulethat we live, that you live by, that the public lives by. They are accepted. Theyhave tir own penon plan. Ey have their own hospital plan. They have everything. Theyre like an elitist group. Reminds of the time when ther was divine right of kings. That is what theyre doing. I serious. Gerri speaking of different ain dine right of kis, you hea the president what hwants is get riof the debt ceiling. You dont have t goto congress to a for permission. Stroke a check. Give the president the checkbook and let him spend whateve wants. Not onlyhat but look at all the things, the laws he has done by fiat. He has passed 800, i think it is 900, excuse me, 90 executive orders. He bypassed the congress. Bypass the courts. Dont to do anythi. Want something . Re, i will sign it i go. Gei up pea presidency, is that what youre saying . Yes. We have a Central Government out of control. This is going to sound a little strange, in economic terms a fascist government. Big busines. Rri ner hea tt. Big government around big bor alln cahoots. Gerri nteresting label, wayne rogers, thas for coming on. Greato have you here. Happy holidays. Thank you. Same to you. Gerri meanwhi fraudsters scam billions of dollars every year. What is it thatakes the elderly so vulnerable . Turns out it is in the science. Fox newss john roberts has e details. Good eveng toou, gei. We hear about the heartbreaking stories all the time. Elderly people fall victim scamswhether unscrupulous home repai company or scam internet or something in direct mail. We wonder why is it that theyre so vulnerable . Scientists from the university of califor at loangeles, ucla, did a whole lot of rearch about this. It has less to do with cognitive decline as we get older but more to doow our emns change. It is an area of the brain insular cortex, specificay the part of the brain that gives us the emotion disgust. Ucla researchers took two groups, one age 2, the one average age 68. Showed th pictures of people who were untrust worth any. Here is what they found loed at functionnl mri associated with that. In the younger brains t areas of the brain that deals with disgust lit up like a stoplight that said stop, dont go further. In thelder individuals the brains didnt register anything. Untrustworthy people looked the same. The leadesearcher on this believes a we age w lose that gut feeling inside us, tells us hey, something is wrong here. If youe not getting that uhoh signal it is not figuring into your decisionmaking. You could falsy belief that a pitch of some kind is a good one when in fact it is rally bad and younger adult woul have no diicult seeinghat. Professorer taylor knows from pernal experience. Her late fath was takenn a financial scam for 17,000. Herunt bought into one of those pitches hey, as a dge against ilation, buy diamonds over internet. You got it. When she got those, they were glass. Gerri oh, my goodness. John, i he very youn voic in the background. What is going on down there. Those are my 20monthold twins are visiting tonight. Those are my hedge against this emotial decline. Pe if you yo will by the time i make bad decisions about my finces they will b the to ta care of me. Gerri joh that is sweet. Fascinating ory. Real interesting stuff. Who would have thought, ght . Yeah. Hereshe thing too, gerri. Th all starts i your mid 50s. Some of the mt Vulnerable People are experiinced investors in their mid 50s who lose that g instinct tells them, wai a second, this is a bad idea. So be prepared. Weve got decas now to manage our finances in retirement as well. Gerri thats right. John thanks for coming on. A pleur to see you. Happy holidays to the kids. Thank you, rri, when we come back, is obamas refusal to compromise on the scal cliff going to hurt your 401 k . And is the government putting your car at risk . Aaa and my nex guest says, yes, they are. Well tell you how after the bra wi the spark miles card from capital one, thor gets great wards fohis small buss your boa [ garth ] thors Small Business earns double miles on every purchase, ery day ahh, the new fabrics. Puit on my spark card. Ow. [ gah ] why settle for less . The spiked hls are workg. Wait [ gah ] great business deserve great rewards. [ male announcer ] the spark business car from capital one. Choose unlimited rewards with double miles or 2 cash back on everyurchase, every day whats in your wallet . [ eers and applause ] you know how painful heartburn n be. For fast, long lasting relief, use doctor remmended gagaviscon®. Only gaviscon® forms protective barrier that helps block stomach ad from splashing up relieving the pain quickly. Ry fast, long lastin gaviscon®. Gerri more warnings what they call e 15 fuel has one lawmaker tryg to put the brak on the environmenl prottion agency on ts risky bet of ethanol a gasone. Joining me, republican congressman jim sensenbrenner. Welcomeback to the show. Alwaysreat to have you here. Happy to be here. Gei tell me about the major objection to e15 . What is the major problem with e. 15 will void the warrantyn any car manufactured in this country since001. The engines are not able to absorb themount of ethanol compared to gasoline. Aaasmates 228 million cars are being placed at ri. Gerri were talking about. Mw,hrysler, nissan, toyota, thbug. All of the cars at why is the epa pusng this variaaion on gas, if it is so harmful to ca . The epa isone deaf to what the American Public wants. This is one examplef it. If e15 is mistakenly put into any of thesears, and the engine ends up being damaged because the gas is nning too hot, the warrants would be voied andhe motorist would end paying thousands of dollars get thengine reired. I think that tis is something that really tells the consumers that they dont matter when government cisions are ma. Gerri n, congressman, let me ask you this. Why is the epa is pushing this thing . If you look at benefits, the environmental benefits are very marginal. Theyre marginal because the more ethanol in theas the lower the gas milea the automobile ha so tmeans we wou be burninmore fuel, total el which means tat there will be mor pollutants that go out the tail pipe. I think it is kind of a half and half thing, but you got remember th was iowa thatot president obama on the road to victory in 2008 and a t of the ethanol ends up being made in iowa. Gerri a lot of states that ll e 15 are in that region. Iowa, nebraska, nsas, that is where is gasoline is being sold rightow. But i undeestand there is big fear this will be approved for the whole untry. Whatould happen then . Well,hat would happen then, there would be a lot p people that would be mistakenly putting e15 in eir cars because there wouldnt be separate pumps fo e15. You uld have to push the righ button or read something stuck on the pu. You and inow that most of us dont read the sff on eump whe go and fill up. Gerri n i sure dont. I sti in the crit card, puthe blend i want in and fill my car up with gas. Gerri right. Im not going to be very happy i mistakenly put e15 my car and four miles down the roa thengine blows up. Gerri is it just politics . Is it just the president rewardingeople who helped him get the job all ov again, that is putti this, what is really financially maging product into the marketplace . Well, youll have to ask the president and epa ministrator lisa jackson. What i can say is, that over a year ago, i wrote toevery manufaurer autobiles in the United States and ask them whatould hppen with e15 in theirars. All14 of them ote me back saying that the engines would be ruined and the warrantiesould be void. So that would mean that anyby who mistakenlyut e15 in their tank would have pay for their repairs on theirwn. So far the epa as fused to budge on their mandate which they call optional, but if youre running a gas statio, you arent going to t in an investment of 100,000 for more underground tatanks in a separate pump you probably would be seing e15 because of the mandate and then the gas that most cars can safely run on simplyouldnt be available. We vent got to talking about how small enagainst are wrecked like lawn mowers and snowmobil and atv and outboard motors. They would be wrecked too. Gerri ongressman, i know you introduced legislation. Do you expect it to come to the floor . Will we see i or will it die death because people sometimes ju dont listen to reason . Well anything th isnt on the presidts desky is automatically kil but im going to be back next year becse the more the word spreads about what the epa is doi, the better chance we will pass legislation to put the epa mandate onhold until the National Academy of sciences the impact of e15 on engines us byyconsumers in the United States. Gerri congressman, thanks for yourime tonight. We appreciate it. Thank you veruch. Gerri now wnt to know what youthink. Heres our question tonight, who do you trust more, e epa or aaa . Log on to gerri willis. Com. Vote on the righthand side of the screen. Coming up my two cents more. What investors need to know wh it comes to the fiscal cliff. Is youu 401 k in daer . Stay with gerri as lawmakers look for ways to raise reven in the fiscalliff talk will they endup iding your retirement gerri well the fiscal cliff negogotiations grinding on and on there seemto be grong buzz the govnment will soon raid, get this, retirementaccounts in order to raise revenue. It is actually happe before in other countries but could it happen here . Nathoenig is a Fox News Contributor and founder of the hedge fund, catalist pig. Jonathan, welcome back to the show. Thanks, gerr gerri what would you put the possibility of congress coming after our 401 k s a it is a big pot of money . It is an immense pile of money, gerri. We know theyre going after our invests, right . Raising taxes on dividends dapital gains. Given the president s collecvism i feel so sort of direct confiscation of peoples 401 k s is not impossible t begin with. It is a temendous amoun of weth. At the very lett might eliminate tax defermen people enjoyed. Further down thespectrum could be o rit wealth tax. It happened many times in the past. It happened in ireland. It happened in argentina. Could happen here as well. Gerri here is ts big pot of mone 18. 5 trilln dollars. We know how the people are in washington. Theyike to get their hands on whatever ty can. Jonathan, let me tell you this. I had a guest on this week, that told me it was irresponsible, irresponsible for journalists to report the possibility that the governments sticky fingers might get on to our 40k s. Do you agree . I dont disagree attall. Gerri. Hopefully it is a warning gn. The president s proposal has en widely reported contained no net new tax cuts spending cuts. So there has been no real effort to reduce sppnding. Interesting stat i wws keeping an eye on this week. After the 30 days following election weve seen the biggest spike in psical gold sales that is gold coins ever. Peoplere piling i i actually brought along, this is a 1,000 gram palladium b. People are piling into ecious metals. Not because they think eyre gog higher. Gerri give that to me on the way out of the door. Theyre afraid of the government confiscatin their wealth. At is facet in the Capital Markets right now. Gerri this guest ofind said it was irresponsible of the mdia to rort tat the government might do this. I actually think it is our solemn obligion to report anythi that the government might be consideri that they might tax to raise revenues. And i think the 401 k would be such adisaster on some levels. Look, it is not just that you might have to pay additional tax on your four open one k. We have Retirement Crisis in this coontry. Pele have not saved enoh money. To tell themhey couldnt set aside their mey taxfr, tell them ere they te their money out of their retirement aounts, that would be a tragedy. That would stop retirement saving as we kn it, dont you think, jonatn . It would a tremendous destruction of wealth but it has happened, ppens all the time. Peop always compare the u. S. Being nextgreece. You know wh . Confiscation of private pensions happened in greece. It happened in the last year. It happened in agentina. In ireland to pay forbillion stulus spending. A wealth tax of some sort especially on 401 k s which you point out people put ide to save for their own future i dont think that is out bounds on this presidt at all. He is firmlyommitted to spending and collectivism. Eventually bills have to be paid. They will use peoples private assets. Gerri ot just the president. Every elected official in washington seems to be the exact same way. They want to get our hand on our mon we have to be alert. It not irresponsible to mention it. I dont ink so. Jonathan reallyapeciate your time. Thanks, gerri, wel be right back with my two cents more and the answer to the question othe day, who do you trust more, the epa or aaa . [ male announcer ] hodo you trade . With cottder strming otes, any way you want. Fully ctomize it for your ading process from thought to trade, every screen. And all in real time. Which kes it just like having your own trading oo righat your fingertips. [ rodger ] at scottrade, seven dollar trades re just the start. Try our easytouse scottrader streaming quotes. Its another reason more investors are saying. [ all ] im with scottrade. [ male announcer ] they are a glowing exple of what it means to be the best. And at this speci time of year, they shine even brighter. Come to the winter event and get the mercedesbenz youve always wished for, no for an exceptional price. [ santa ] ho, ho, hoho male announcer ] lease a 2013 glk350 for 399 a nth atour local mercedesbenz dler. The. Gerri a is esteemed epa to suspend sales of teefifteen death because the fuel could damage cars. Being puhed by the Environmental Protection aency as a way to incree the use of renewable fuels, a mix of 85 gas and 15 percent at the mal. Todayou trst more . Epa are aaa . We ask don gerriwillis. Com. Twopersonaid the epa. 97 percent better aaa. Familiar t drivers all across the country. Onif you run a r light is that the picture. One they just became the target of a classaction lwsuit. Accused of rigging the cameras to track drivers. There must be enough time to get through a yelow light typically about three seconds. Wh the drivers in new york said that lets change mch quicker. Cities with a red light cameras can their there for safety asons. When the federal highway sety report sw whil they did reduce tbond crases, rearended can ccess wind p. We won i woulds