what they do is have some write offs for capital investment and software and equipment and hiring. what is new in this bill that will create jobs? we hope that is it. that last line is point, that coupled with the extension of the tax cuts, small businesses were waiting to see what would happen with the tax cuts and now with two years they cannot change the tax code they will be able to buy things like equipment. and maybe hire people. five or more, but we will take two years. how does the tea party feel about the tax compromise? we got insight into that from the congresswoman who talked about it. i wasn t happy and i voted no on the tax bill. it continues deficit spending that we cannot pay for, a clear message we got from the voters in november. but more than that i am worried because it blows a whole open in
things in this world have dramatically shifted, shifted on this planet that we all survive on. things are very different than they were two to three different years ago. we all know the figures sean we all know the math. and the fact really is this is it. well, before i talk to gloria borger, i want to hit on the tax recommendations because the commission is essentially calling for a tax increase to help bring down the debt. here it is essentially. there s going to be three tax rates if they get their way. no write-offs for incomes up to $75,000, a tax rate of 8%. from 70,000 to 210,00014% and above 210,000 the rate is 23%. so lower tax rates but the popular write-offs would be gone and for a lot of folks that could mean or will mean higher taxes. they also recommend across the board spending cuts including military, federal health care spending, farm subsidies, the
point. guest: speak for yourself. guest: we proposal real tax reform, there is 1.1 trillion worth of tax earmarks that is just spending by another name, in the tax code, and that compared to $16 billion worth of earmarks in the appropriations bill and if we wipe out those earmarks, we can bring the rates counsel to 8 percent, 14 percent and 23 percent and the corporate rates at 26 percent the best play it would be to start and grow a business much it makes sense. neil: was that deliberate on you guys part. i noticed that in studying the report, that you did take away a lot of business and other popular deductions for general folks like the mortgage deduction and business write offs, but you did conversely slash a lot of income rates, business tax rates, what i guess was your weighing of saying but they will be offset by this. is that going to be a winning enough argument, because in the end you both are astute enough
earmark, but the write offs, going to the treasury to balance this thing, but i know and you guys know the history of lockboxes, and trust funds and money allocated for distinct purpose and it has a way of veering off course. guest: the great thing is we are spending that money today but not paying for it. we are doing deficit financing. what we said is, cut the spending. or raise the revenues. either way is okay. but if you are spending the money you better pay for it. guest: if you cannot stay when the trust fund support trust system do not go to the general fund like you do. get it straightened out and if you cannot, 15 cent gas tax to get it strained straightened out. neil: how do you know the money will go to its intended purpose? guest: that s what we are seeing and it will have to be legislated. we did not put this in
hurt. the institutions themselves it s a question of timing in write offs and not to get into the esoteric aspects of this it s not going to have a material affect on the institutions themselves. what is important is to restore confidence in the foreclosure process itself. the ownership that is that the deeds are in order and that the promissory notes that are the mortgages are in correct order so there can be confidence to get this all cleared out of the market. megyn: even if you get confidence back i can speak to you as a recovering lawyer. the lawyers are going tole kha edge it. you ve got a hook now, a reason to go in and say there is funny business going on. since you re only a row covering lawyer i can say this out loud, the lawyers are dammed. this is about a market that has to be regulated and straightened out and the than institutions understand it. that s why you re seeing leaders like b much a step in and do the right thing, they understand the legal marketplace as well.