tv Bulls Bears FOX News May 14, 2016 7:00am-7:31am PDT
welcome back. it's been a great show and we're going to it all again tomorrow. >> bright and easterly, 6:00 a.m. >> you have really brightened our show so much. thank you for doing that. that was wonderful. >> protesters hitting the street, demanding tax hikes on the wealthy and businesses. with companies like major retailers struggling as consumer spending at their stores is slowing. some here saying tax hikes are the last thing our economy needs. this is is bulls and bears. the bulls and bears this week. gary b smith, jonas max ferris, john lathefield. and ashley pratt and more. tax hikes in this economy?
come on. >> the last thing we need and do you want to know why? because the average american fasm is strapped. and that is because of this horrible economy that we've had president obama. and tax hikes are going to make things worse. the middle class is shrinking rapidly and that is very dangerous because now we're putting people into the very poor category and the very rich category and if we want to be france and tax our wealthy fine, but guess what they are going to leave just like they did in france and there was major hoopla then because businesses can't be created and right now we are burdening small businesses causing businesses to close. >> this economy is barely growing half of one percent in the first quarter. do you hike taxes in that environment? >> no you don't. but here is why. most of the people on the left say look, you know, we hike taxes a taxes and gdp actually grew. because if i'm the government and i take a dollar from you and
i spend it as the government the gdp stays the same. so the government says look we'll go out and spend the money. here is the problem. we all know that government spending is wasteful. it is full of fraud. full of abuse. just look at almost any agency. medicare, 60 billion in fraud. department of defense, 23 billion in wasteful spending. bridges to nowhere, etc., etc. the fact is, and getting back to ashley's point. not only do the middle class not need a tax hike but the government spends it less effectively. that is the problem with government spending. it is just not right. it is not fair and it is in effective. >> and these protesters clearly think that tax hikes are some sort of magic pixie dust for economy. >> we had the tax hikes on the rich a few years a -- california and new york paying over 50% if
you are very wealthy. in fact the hard up middle class the first guest is referring to is really the bottom half of taxpayers is paying like 4% or less in income tax. so someone's gonna have to pay more tax. look, no one wants to raise taxes. and yes it is a drag on the economy any time but where is the economy where you can raise taxes. at some point we have to realize the debt is not going away unless somebody pays for taxes. we can't close the gap without going to a higher rate. and european citizens pay a higher tax for all the benefits they get. it is not just a soak the rich plan. >> we raised taxes to near 40% in the top bracket and still haven't had an economy growing fast they aren 3%. >> 14% 6% of gdp in tax revenue in 2009 to about 19% which is at
the high end of the historical average. we are bringing in record revenue right now. we've also got record debt. so if you have more revenue come in you are just going to have more spending come in. these guys can't balance anything. the problem you have with this. this is for corporations. we are in a mild, not a bad but a mild corporation recession. profits have been down. the stock market, has had zero percent interest rates and the market has been flat just meandering side ways the last couple of years. the fed can't even raise interest rates right now. with 5% unemployment because we have a .5% gdp. the more you start bringing in tax revenue and taking away from corporations the more you are going to hurt job growth. and remember we've already got 19% of gdp right now coming in tax revenue. that is high part of the historical average. we don't have a tax problem. and squl if you are running for office what would a tax hike do for a economy that hasn't grown
faster than 3% -- >> depends. i would argue we may not need another income tax hike in general. we need a close in corporate loopholes. no reason people who are paying a higher rate than -- so the question is, how do you arrive at this revenue. but jonas made a good point. which is you will have to arrive at more revenue. the reality is we to do need the money to fund the government. if you want a level of spending whether on entitlements or on general revenue you need to create that revenue. >> that's factually wrong. we had 2.1 trillion in 2009 and now at -- >> what do you want to cut? >> -- deficit right. now it is not a revenue right now. >> what do you want to cut? >> what entitlement do you want to cut?
>> -- pro spending in 2009 we'd be fine right now. the problem is the more revenue you wring in nothing gets cut. nothing. entitlements, yes. deal with entitlement, social security. deal with it in the future -- >> -- [inaudible]. >> the more revenue we bring in the more programs we stack on programs already there. >> gary b. i can hear you sighing. >> the whole premise is look, if we raise taxes, we need the revenue to fund the government. many question is why. it's been shown -- >> -- >> let me finish please. if government spending decreased 10% we would probably balance the budget to within 10 years. do we need a department of defense that's bigger than the next six countries in the world? i don't think so. do i as a person that earns a fairly good income. do i need the full social security benefits that may maybe is going to get?
probably not. there are ways to do it. do you think there is one department out there that couldn't take a 10% cut in their budget with all the fraud and abuse? that's the reason why you don't raise taxes. you don't need to fund -- >> pretend for the sake you have to raise a dollar in tax revenue. no one wants to do but we have -- >> why? >> because we're running deficits. it's not gonna happen. >> who are you electing department of defense? donald trump saying he's going to increase the department of defense budget. >> -- could it be cut. >> ashley. >> the real issue. rich and wealthy people here investing in america now being incentivized to invest outside of america because of high tax rates. i think we need to focus on that here instead of bringing it tot
the candidates now and saying it is a he said she said and saying that our wealthy americans will be forced out and jobs will be leaving america at a rapid rate like they have because they are investing overseas. do we want to that happen? do -- >> you can make the case that a corporation is going to go to another country. we've seen many cases of that. those can't have a limit to how high they go. but the people aren't all going to start moving to luxembourg to -- let's not over sell it. >> -- [inaudible]. >> a bright light on the economy. we talked about the retailers hurt bug overall retail sales surprised to the upside. we can credit online retail so there is your sweet pot, right? >> silver lining. >> gary b. final word. >> well look. here is the problem with store front retailers. name a store front retail e bricks and mortar, that you have been in that you can say my gosh that was a fantastic shopping
experience. yeah maybe 20 years ago when you went into nordstrom and all the customer service but now you can't go to nordstrom and have a better experience than ordering from amazon. certainly not macy's. so right now it is amazon. that is why you see restaurant spending increase. part of it is gasoline. go to bricks and mortars retailers? >> -- sales tax break -- >> tax break that what we augment ought to be talking about. donald trump's trouble isn't the republican establishment. what if i told you the media establishment. why these front page stories are the real story. to you. at the bottom of the hour. >> thank you neil. we can't wait. >> up here first. chaos at tsa check points nationwide. and if you think those lines have people mad, wait until you see the bonus we just gave one
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live in america's election headquarters in washington, good morning to you. i'm leland vittert. thousands of mourners turning out to honer a falling navicele. charlie keating was killed in action again action. people began gathering on the streets hours before the services began in coronado california. he was awarded heart and silver star for his heroism. >> and vladimir putin says a new shield in romania is a threat to global security and vows that russia will take the necessary steps to respond. nato says the missile defense system is to protect europe from
rogue states like iran. i'm legland vittert. back to bulls and bears. >> tlm there it is. are you [ bleep ] kidding me tsa? what the [ bleep ]? >> the nightmare continues. tsa lines testing travelers patience. also this week 3,000 bags missing their flights after the computer glitch in phoenix. and here is the cherry. news that one tsa official got a $90,000 bonus while the agency was failing security tests. gary b. says not one more time until we privatize. >> exactly. we've all been that guy in that clip, you know, like what the -- tsa.
privatizing in my opinion is a slam dunk. there are a few reasons. you say well do they have to have the same level of screening and procedures as the current tsa? yes they do. two, they have done it before, private companies. three would there be better customer service? of course. because you just write it into the guidelines and if they don't hit the levels they don't get the contract renewed. and would it cost less than the current tsa bloat? yes of course it is a private company they want to keep costs low. same level of service. better customer service. less cost. this is a no brainer. >> i fly two to five flights every week. i know tsa pretty well. the inconsistencies blow my mind. you are spending about 5.7 billion colors out of government
money. i say you not only privatize but take the 9 hundred million passengers flying per anem and you have a user fee that pays for tsa. privatizing that cures it. >> not only long lines but 95% of tests that were failed in some testing they did. >> they are a disaster. normally i'm not a huge fan of privatization but something's got to give and as the private sector could do a better job. i don't see how they could do a worse job. i fly often. and listen. they cannot be worse. they failed their tests. they are understaffed. it sounds like overbudgeted if they are giving out bonuses for something they don't deserve. give it a shot.
if it doesn't work g get a new contractor. >> airport screening used to be private until 9/11 and that is why we nationalized if ed it. that is why president bush signed off on that. >> and democrats in congress are looking to blame republicans for this saying well you are the ones who put tsa in there but they are the one this is the oversight in government reform committee looking at tsa and their activity and $90,000 bonuses for a pretty in effective organization out there run by the government with zero accountability doesn't seem to be effective anymore so privatization is something that should be happening because again people can be found accountable in a private system. which is in we should move towards that. people are not liking the lines. people are honestly getting away with be able to bring liquids on. i've been able to do it at least going through tsa that is not the quart sized back so why are the long lines? >> anybody stand up for the bush administration anymore in this is getting ridiculous.
the private sector cooked up the whole idea of charging you to check in your bag the right way where you put it under the plane so everyone stuffed in their over sized. that's causing the huge delay. that's causing a problem. now the other situation is without full liability for a terrorist attack the airlines have really no incentive to do a good job. it is because no one airline runs that. no one is going to use a different airport or airline because the security area gets cued up -- >> but it is a government monopoly then. >> the if the airlines ran like they used to like a hotel i'm not going sty at this hotel it is a two hour line it is not like that because no one -- it is not like americans -- you can't switch airports and go to at another because there are shorter lines. >> final word. there are 22 airports in this
country that have private companies running the security. this time is different. last word. >> well look, i think the bottom line is show me an area where you have government versus private side by side and i bet in every single case private runs it better. talking about management of fee turnpike, management of hospitals. in every case private sector wins. i don't see why you wouldn't do it in this case. >> thank you and ladies. cashing in is just ever over an hour from now. eric. what do you have coming up? >> one in six young men in america are either behind bars or unemployed. which presidential candidate will help turn them into productive members of society? >> plus george clooney say nos way we'll have a president trump but actor scott by a owe is hear to tell you why he will. thank you. up here first a zika health scare. the one thing our government
the senate to vote next week on the $1.1 billion plan to fight the virus. the obama administration says we need nearly twice that amount. you think protecting americans is job one, particularly in this case. >> it is a bipartisan group that -- i'm like most americans with a brain. i don't like politicians but in this case i believe they are
right. we eradicated polio. it is better to stop it now than try to react to it after it comes here. >> ashley. >> i completely agree. >> i think that just the other day i was flying through security and when i was there in line they actually had zika warnings. i think we're a little late to the game an this seeing as how people are already being effected especially people my age young women who could have children and that's very scary. i'm not one for big government spending but marco rubio is right. we need to look a here and fund this to full measure and take steps to prevent this from becoming an epidemic in our country. >> you always see this happening. you overestimate what prevention might cost. >> well per the ashley and john to be like arguing against motherhood and apple paising you
don't want the money. no one's come one the a plan over the next five, six months exactly how they are going spend it. they are going this is the money we need. and here is the problem. the current administration wants it with no strings attached not. expiration date and they can transfer it to other departments. they can take this and put it in department of agriculture for o epa. >> right -- >> the 1.9 million comes from you and i with no plan. just goes into the government slush fund who knows what happened to it. >> -- ebola funds. you have the cdc. i'm sure they have a plan. people in brazil are being told not to get pregnant the next two years. do you really want that in this country? give the cdc what they need to get it done. >> they can also take this money from the areas -- there is
already profit seeking drug companies in areas that aren't ebola or -- and there shouldn't be government research money there because the companies want to lower your cholesterol. so it is a huge multi billion market. so they need to shift that money from one to the other. >> thank you guys for being here. budweiser changing its label to america until the election. will it get a vote of confidence from our beer drinken stock pickers? at old dominion, we see freight... ...as a combination of products and customers. every on-time arrival is backed by thousands of od employees, ...who make sure the millions of products we ship arrive without damages. because od employees treat customer service... ...like our most important delivery. od. helping the world keep promises.
predictions gary. >> hello amazon. i think the stock hits a thousand dollars next two years. >> are you buying? >> not with trump attacking them this week. >> your predictions. >> apple is finally investing the huge cash horde. i like it. i own it. up 20% end of the year. >> gary. >> >> last dud was the apple watch. >> pu.
>> and the new america brand label is back on the internet because everyone knows it is now own by the belgians which is why -- >> john. >> last week was bourbon. this week a is beer. something you should tell us jonas? all right. forget the republican establishment. it is donald trump's real problem with the media establishment? hi everyone. i'm neil cavuto. and now that he's the presumptive gop nominee, all of a sudden these are the trump stories we start seeing. the washington post front page expose on his playbook past. the new york "daily news," declaring him less popular than lies. than lies. and the lies we understood were upset. anyway, charles is asking where is the same over the top type of stories on hillary clinton? bernie sanders? i'm not saying they are not out there but there are