Skip to main content

tv   Your World With Neil Cavuto  FOX News  February 8, 2010 4:00pm-5:00pm EST

4:00 pm
an $80 billion snow day? welcome, everyone, i'm stuart varney for neil cavuto. let it snow, two feet of white stuff shutting down washington. the jobs bill, the exact cost is not known but expected to be in the range of $80 billion. with more snow on the way, jd hayward says keep is coming. the former arizona congressman joins me, expected to launch formally his gop bid for john mccain's senate seat next week. welcome to the program. you're not unhappy with snow shuts down washington. why so? >> well, stuart, first of all it gives a lot of people in washington a chance to watch you
4:01 pm
and me and i make one other recommendation to them on the internet, go to the website, jdfor it's simple, with the snowfalling like this, rarely does weather illustrate public policy but we had a massive snow job of a storm systems bill, almost $800 billion. what do we lose in the private sector? 7 million jobs? the senate needs to slow down. if this bill is genuine tax relief, rather than a bunch of liberal command and control projects, i want to say a thankw but i'm hearing the same old, same old. minimum tax cuts. command and control. let it snow. >> we got snow on the ground and more tuesday night and wednesday. members the jobs bill is held up but you know ultimately it's
4:02 pm
coming and probably know the democrats have a pretty good case to be made by saying maybe it is working. after all, we're going to go hiring a million census workers soon and the unemployment rate dropped to 9.7%. they can make the case it's working and we need more of the same. >> sure, if you're totally snow blind and take a look at what's happened. there's a grain of truth, maybe a snowflake of truth in the numbers you just reported but try this on for size. you've been talking about this. the fact that the number of six-figure federal employees making over $100,000 a year is just under 20% of the total federal workforce? one out of five federal employees making the big bucks. there's been something like 12,000 jobs allegedly created by the snow job of a stimulus plan. but the fact is they're rationale, the left's rationale for job creation has it wrong. in the final anal analysis,
4:03 pm
government cannot create jobs, you have to have atmosphere conducive to job creation. that comes with tax relief to small businesses, not commanding control tax reveal. >> we're told in this new jobs bill, there is some tax incentive -- tax credits. >> some. >> it's limited but would you throw that out and reject that as well as the other stuff? there? >> well you have to take a careful look at everything, stuart. but if a again it's all in the way it's packaged. you know and i know the favorite tool of the left is to make small business people hop on the left foot, squint and pat their tummies and pay taxes in other ways. they needlessly accomplice indicate things and the definition of bipartisanship in the senate is the conservatives caving to what the liberals want to do. don't get me wrong, if this was a genuine tax cut belleville no
4:04 pm
problems but you know and i know dick durbin and harry reid have make work democratic projects that don't create jobs. they're make work so we can see more cook county type accounting from the department of labor. >> cook -- you're in arizona i think. a long way from cook county. >> we have a lot of chicagoans here. >> are you officially running against john mccain? >> the official announcement will come next monday. >> it will come. >> you can monitor the website, and yes it will come monday. stuart, with the snow in washington, come out to arizona for the announcement, okay? >> jd heyworth a pleasure. >> the president telling gop leaders to put their ideas on the table. he's proposing a half day televised healthcare summit. the president looking to build on what's been done and republicans looking to start from scratch. steve cohen of tennessee.
4:05 pm
congressman, what's the point of pushing a program that's already been on the table? is has to some degree been rejected by the voters of massachusetts. for which there are not the votes in the senate or the house. what's the point of putting it on the table? >> i don't know it was rejected by the people of massachusetts, massachusetts has the healthcare program and the fact that the people of massachusetts liked their healthcare program, which i think senator brown voted for -- >> what's the point of putting it -- the senate and house again when -- the votes are not there. what's the point of putting it in front of the house or senate? >> i don't know the votes aren't there. they could be there through reconciliation. it's been used in the past to pass bills in the bush administration and -- >> you would recommend -- you think we needed so badly -- you think it's needed so badly that the democrat party would take that kind of risk, pushing it
4:06 pm
through, it's acknowledged to be pretty unpopular. you would take that risk of pushing it through? >> i don't know it's that -- people don't like what happened with nebraska and the way the advantage was given. that would be changed. there are other things that would be changed. people want healthcare and they want to see people not be denied coverage for preexisting conditions. they don't want the premiums to go up and eat more economy. this is a job killer, the healthcare. we have it today without change, we'll lose jobs. it will increase the deficit more. premiums are going up, deductibles going up. it costs people a lot of money. >> scott brown said look, a vote for me, scott brown said it, it was very clear, a vote for me and i will stop this healthcare. he was elected by a significant margin. >> but he was -- he was but it
4:07 pm
was a poll showing people wanted the healthcare they had in massachusetts which is like the healthcare the rest of the 49 states would get which we would have to pass with changes and the people of massachusetts wanted their own. they weren't against the senate bill. the 49 states deserve to have a change. we need to take away the antitrust. >> is there a chance -- are you playing politics here? are you pushing forward a plan and expecting republicans to say no and then having the republicans painted as the party of rejection, refusal and do nothing? playing politics? >> i'm hoping they come to the table and join us in doing away with the antitrust. >> if they came to the table -- if they came to the table and said you give us real tort reform, would you listen to that? would you talk about that? >> i certainly would. i don't know what the definition of real is but there was something in the house bill about tort reform. we reduced tort cases by two
4:08 pm
third and that's something we put in the house bill. i would look to see something that people have to have a panel to prove actions they bring. as we speak today. representative john murthaed died, and he was my friend, longest serving conman from pennsylvania. he died because he went in for gallbladder surgery and his intest intestine was perform rated somebody who loses their life because of medical fault should have a court system that gives damages, dependings on the life ex expectty. >> forgive me for asking, forgive me for bringing this up, you brought it up, are you suggesting that congressman murtha is a martyr in the cause of healthcare reform? >> no, no no -- nobody's a martyr but he went for gallbladder surgery and they perforated his intestines.
4:09 pm
so you should not have some form of tort system to reward people or families who are injured. that's also a way to stop medical malpractice because people are more likely to be aware of the problems and be more careful. it's not just a reward. it's to protect. >> a recent poll says 47% of voters want you to start from scratch. not go with the existing plan over again. that's the latest. we're flat out of time but i appreciate you being with us. >> thank you. >> i want to say after listening to your previous interviewer, i'm getting on the john mccain reelection team. >> we need healthcare reform to slash the deficits. >> i would say this to your cab driver and everybody else, get a health reform package passed. >> we need healthcare reform to slash the deficit. has the president looked at another big program? social security, surplus is
4:10 pm
gone, now projected to be in the red for the first time in 25 years. congresswoman marsha blackburn is not surprised and says it's a wakeup call. thanks for joining us. what lesson do you draw from the deficit situation that social security is now in? >> stuart, there are plenty of lessons learned from the medicare and our social security systems. what we have to look at is the fact that social security has not been in a fund marked specifically for that. every year the overages, reserves, have been used to offset the general budge, they've been spent and the federal government has written an an iou to social security. in 2018, 2019 we're going to run out of the surplus we've run each year. we're going to have to pull down the iou and we're going to run
4:11 pm
out of those at 2042. what that says to us is we need to stop, we need to look at where we are and we need to address the situation. certainly trustees from the social security trust fund told us this every year. >> can you transfer this to medicare, presumably at some point the baby boom generation being where it is, presumably at some point, medicare runs out of money, goes into the red, and that's money flowing in that will be iou's again. >> that's exactly right. and the timeline, very much mirrors the timeline for social security. and that is why we talk about these trillions of driver's dolf unfunded mandates on our books and the fact this is in the outlying years. one of the interesting things that happens is the way the federal government budgets. when they budge they look at a 5
4:12 pm
or 10-year window, not long term liabilities. that's the reason we need to bring those onto the books. >> that means benefit cuts. some kind of benefit cuts or tax increase. now which political party or politician will cut a program which is very popular with voters? >> one of the things you have to do is look at how the program is delivered. you don't necessarily have to have benefit cuts. what you have to do is look at the administration first and foremost and see what you can do with cutting back the bureaucracy that surrounds that program. so your money stays -- people forget medicare is a program that individuals have paid into every single year with their medicare and social security benefits. the federal government has first right of refusal on that paycheck.
4:13 pm
and this is one of the reasons that we need to make sure that individuals get the money out that they have placed in. this is one of the reasons that we have had the discussion over and over for our younger earners of having accounts with social security numbers and their -- their information on that. >> you're right but -- it was roundly rejected when president bush suggested that. didn't fly. congresswoman -- go ahead, i have ten seconds. go. >> i was just going to say it's interesting to me the number of people now that are coming to town hall meetings and saying you know, i bet if you were to scale back some of this bureaucracy and if you were to look at some options for younger workers we could get this under control. >> thank you for joining us. ditch the bush tax cuts? what democrats are pushing and do the numbers support it.
4:14 pm
then this,. >> one of the hottest super bowl ads just earned big bucks. boss:hey, glad i caught you. i was on my way to present ideas about all the discounts we're offering. i've got some catchphrases that'll make these savings even more memorable. gecko: all right... gecko: good driver discounts. now that's the stuff...? boss: how 'bout this? gecko: ...they're the bee's knees? boss: or this? gecko: sir, how 'bout just "fifteen minutes could save you fifteen percent or more on car insurance." boss: ha, yeah, good luck with that catching on! anncr: geico. fifteen minutes could save you fifteen percent or more on car insurance.
4:15 pm
and you worry your pipes might leak (pipe doctor) ask your doctor about treating with vesicare. (pipe woman) then you could treat yourself to a night out with fewer urges or a day with fewer leaks or a trip with fewer overactive bladder problems. (pipe doctor) once daily vesicare can help control your bladder muscle and is proven to reduce frequent, sudden urges and leaks day and night. if you have certain stomach or glaucoma problems, or trouble emptying your bladder, do not take vesicare. tell your doctor right away if you have a serious allergic reaction, severe abdominal pain, or become constipated for three or more days. vesicare may cause blurred vision so use caution while driving or doing unsafe tasks. common side effects are dry mouth, constipation, and indigestion. (pipe woman) so, you could treat yourself to more time with friends and family or more of whatever you like to do with fewer urges and leaks. ask your doctor today about taking care with vesicare.
4:16 pm
4:17 pm
>> congressman john murtha has tied. the pennsylvania democrat suffered from come indication he called for an immediate u.s. troop pullout. he was controversial for 10 of millions of dollars into his district. he served 19 terms in congress and he was 77. >> democrats with a new strategy to sell tax hikes, trying to convince voters ditching bush tax cuts will help the country dig out from the def ditch, critics say they're rushing it
4:18 pm
through. martin frost says the hikes are needed to cut into the red ink. welcome to the program. >> thank you. i would like to take a minute about jack murtha. i served with him 26 years. he was a friend of men and women in uniform everywhere. his word was good. when he said he would do what was required to get equipment, he did it and he will be sorely missed. >> indeed. i want to turn to the tax hikes, rescinding the bush tax cuts. you want to do this and impose tax hikes on higher income people to cut the deficit. may i point out when president bush cut those taxes many years ago, it set off 52 straight months of job growth for the next four years, the unemployment rate averagedded 4.7% and each of the next four
4:19 pm
years the deficit went down. if you reverse that and impose tax hikes, are you not making a big risk? >> first of all you're talking about letting tax cuts on people earning more than $250,000 expire. >> the taxes go um. >> let me be clear. you're not talking about raising taxes on people earning -- >> no i'm talking about the top 1 or 2% of income earners. that's a tax hike. >> let me be very clear the deficit went up when george bush was president. it didn't go down. >> you can pick your time frame but right after the tax cuts, it staple late activity in the economy, receipts to the treasury went up and the deficit went down. >> we had a surplus when --
4:20 pm
>> depends on the time frame. i don't want to argue facts but the deficit did go up consistently when george bush was president. the issue you raised, people earning $250,000 are asked to pay the same rays rate, 39 before 6% they paid before bush became president. there's nothing wrong with that and if this helps bring down the deficit we ought to do that. keep the tax cuts -- >> tax hike in a recession. that's what it is. >> it's not for the normal person, 98% of the people in the country won't get a tax hike. those tax cuts were put in place during george bush's presidency and stay in place. >> corporaller congressman martin frost a pleasure. thanks for joining us. >> thank you. >> miranda rights gone wrong, top republicans saying they were not clued in on how the white
4:21 pm
house handled the christmas day terror suspect. one of those republicans is here and he's next. [ male announcer ] say hello to everyone who is taking
4:22 pm
a different view on security. and that's almost everyone. the people who want the comfort of a company close by. the people who want the strength of a company like broadview security -- a company that protects nationwide. the people who believe security means feeling secure enough to open the door and let life come in. say hello to the people who are taking a different view on security for your home and business.
4:23 pm
a broader view. broadview security. ♪
4:24 pm
>> in the loop or out. the president anti-terror advisor insisting that top republicans knew about plans to read terror suspect umar farouk abdulmutallab his rights. >> they knew that f.b.i. custody means there is a process you follow as far as mirandizing and presenting him in front of the magistrate. none of the individuals raised concerns at that point. they didn't say is he going to military custocustody? is she going to be mirandized? >> stuart: vice chair of the intelligence committee kit bond joining me on the phone. sir, why would the administration pick this fight directly contradicting you just this weekend?
4:25 pm
it's really hard to understand. the administration is trying to pass the buck for the decisions. they call canned me and never said they were going to mirandize the christmas day bombing. i would have told him it was a serious mistake as i'm sure the dna, director of national intelligence, admiral blair and other leaders of the intelligence committee would have told him because they all said it was a major mistake. >> stuart: you were told to say nothing about abdulmutallab. then the white house said exactly what he had been telling investigators, breaking the deal that you had with the white house. you asked for an apology. did you get it? >> no. they asked for an apology if me. whi -- apology from me, which is ridiculous because they're the ones that made the issue political and the ones disclosing sensitive
4:26 pm
information to the press for political gain. what i'm trying to do is get them to stop making americans less safe at home disclosing sensetive intelligence, hurting future recruitment of sources and downgrading our intelligence community. >> stuart: i just don't understand why they keep going back it to. they don't seem to do very well with the issue. why not leave it alone? >> there is a rule of holes, when you're in one you stop digging. maybe they think can find a path out of it. the fact is number one, they mirandized umar farouk abdulmutallab and lost five critical weeks. intelligence is perishable. they missed the opportunity for five weeks. they got some information, they told everybody they were getting it. not only did they tell them what the information was, his
4:27 pm
family got him to talk. so they painted a big target on the back of his family. told future possible sources if you cooperate with the intelligence community in the united states, the president may thank you in public. thereby putting a target on your back. >> stuart: do you think it would happen again? in a similar circumstance after all the big fight about umar farouk abdulmutallab, do you think the next guy who comes here would be mirandized in the same way he was, or have we learned something from this? >> the intelligence community knows it, members of congress know it, at least most of them. i'm hoping the administration understands it. that is why i'm willing to keep the fight going as long as they want to claim it's the right way to go. we passed, stuart, a military commissions bill in 2007. the supreme court said change it. we passed it in 2009 to
4:28 pm
handle enemy combatants on the united states shores. and we ought to be using it. >> stuart: got it. senator kit bond, thank you for joining us, sir. appreciate it. >> thank you, stuart. appreciate your good coverage. >> stuart: sure. scott brown, not wasting any time riling up the obama administration. the stimulus mack-down everybody is talking about. then meet a big super bowl winner. not a new orleans saint. the guy who turned a $200 commercial to a $600,000 payday. he's here.
4:29 pm
[music playing] when you take away all the canned chicken broth that adds msg, one stands alone. the secret is swanson 100% natural chicken broth. they clean up gunk left by lower quality gasoline.
4:30 pm
then they act as a protective barrier... that shieldsnd protects engines... against rformance-robbing gunk. thanks for the info! shell nitrogen enriched gaoline, helping you get the most out of every drop.
4:31 pm
4:32 pm
the last stimulus bill didn't create one new job. in some state the money that was released hasn't been used yet. >> i don't think there is any basis for that judgment. >> stuart: well, it's he said, he said on stimulus. massachusetts republican senator scott brown saying it isn't doing a thing. secretary geithner saying brown is dead wrong. democrat strategist julia epstein says stimulus is doing its job and creating jobs. julian, good to see you again. >> good afternoon. >> stuart: may i make two points. number one you can't prove that the stimulus plan saved two million jobs. you can say it but you can't prove it. number two, the stimulus plan
4:33 pm
did not work as advertised because the unemployment rate did not halt at 8%, it went up to 10%. my response to that is that a big of a strong man, argument, every independent analyst including the congressional budget office which the republicans routinely site says the stimulus plan worked by every measure. if you want to just look at jobs, the cbo said the stimulus plan created somewhere between 800,000 and 2.4 million jobs. >> stuart: how could it be between -- >> at the local level -- >> stuart: that's a ridiculous broad level. 800,000 to 2.4, c'mon! >> the bush administration used the stimulus plan three different times including for many functions that the obama administration used which was to stop state and local government stop cutting jobs, police and cutting teachers. if they didn't have money they would have had to raise taxes or cut services which is a disaster for the economic contraction. jobs is just one measure. look at another measure. a year ago we were at --
4:34 pm
>> stuart: let me get technical -- >> let me get -- >> stuart: i'm going to -- >> i'm going to give you the big problem. >> stuart: you're rattled. the treasury secretary of the united states -- >> i'm not rattled. >> stuart: the treasury secretary of the united states of america has to respond to a senator barely sworn in who is only just won election. the junior senator from your state. the treasury secretary has to respond to him. >> i understand that. i don't think anyone is rattled. from senator brown's point of view he needs to be careful because people make judgments how much debt someone has, new senator has quickly. he does not want to be pegged as a light weight. >> stuart: you're pegging him as a light weight. >> can i finish the point without being intur interrupted? >> stuart: you're pegging him as lightuate. >> stuart, let me finish to point. really. try to get an answer out and you interrupt me. it's a "saturday night live"
4:35 pm
skit here. let me finish the point. a year ago, we were in negative 5% economic growth. we're now in positive 5% economic growth. that is the biggest economic turn-around in the history of the country. moody's, goldman sachs, john mccain's economic advisor are all saying that the stimulus plan worked. economic growth is one measure, the 1 million to 2.4 million j jobs, the business is another measure, the financial industry is coming back, the auto industry -- >> stuart: you can't say -- c'mon, how many million jobs have we lost since the stimulus plan puz in effect? four million? five million? >> as a student of the economy, and you ought to understand -- a student of the economy you ought to understand when you have economic contraction, the last thing to come back is jobs. >> stuart: i do understand it. but i remember when ronald reagan increased demand -- >> can i finish the point,
4:36 pm
please? >> stuart: let me explain something. when ronald reagan cut tax rates across the board, we had a booming economy, very, very quickly. when president obama spent nearly $1 trillion on a stimulus plan, we did not have a booming economy. >> reagan left us with enormous debt and left with us jobs that were not produced at a significant level. the deficit -- >> stuart: the deficit this year is $1.6 trillion, $1.3 trillion next year. >> without being interrupted, let me try to convey the big point. the big point here is a year ago we were losing 750,000 jobs a month. we were negative 6% economic growth. we are now at losing virtually no jobs a month. this figure, that rate turned around dramatically. and the economic growth has gone from negative 6 to positive 6% growth. as i say is the biggest economic turn-around in the history of this country. if you look at every single economic indicator --
4:37 pm
>> stuart: i'm terribly sorry, i'm flat out of time. >> working and most of the wall street analysts are saying it's working. only the naysayers who want cheap political point -- >> stuart: only naysayers. it guess i'm a naysayer. julian epstein, thank you. >> speaks for itself. >> stuart: patrick kennedy taking a pot shot at scott brown saying his candidacy was a joke. my next guest says the democrats could go on the attack because they see brown as a threat. larry savao from ua center for politics. good to see you again and have you with us. >> thank you. >> stuart: are they doing a sarah palin on scott brown? >> they may be trying that but you useded the right word. they see brown as a threat. he's become a national symbol, not just of the tea party move me movement but of concerns that voters have about spending, taxes, debt. those are clearly going to be major issues not just this november but in 2012.
4:38 pm
in politic when you have a strong opponent, scott brown is becoming that, you have to undermine him at every opportunity. they started on brown already. >> stuart: it could backfire. man or woman in politics can get stronger when subjected to consistent attack. >> yeah. sarah palin is a good example. no question about that. the more she is attacked the more her followers seem to respond with support for her and the things that she says. you have to be careful. also, i'm not sure that this is the right time to be attacking scott brown. he just got there. he's riding a wave of national publicity and one of under ten senators widely recognized in the country. most senators are fairly anonymous outside of their own states. so this is somebody with a lot of clout politically. i don't think it's the right
4:39 pm
time to be attacking him. it may come at a later point if he decides to run for president or he's on the ticket for vice president in 2012. >> stuart: were you as surprised as i was to esee the treasury secretary of the united states of america responding directly to a very new senator and junior senator at that from massachusetts? >> yes. in a word, yes. you don't respond to a lightweight. you respond to someone you think is a threat. >> stuart: larry sabato, uva center for politics. thank you for joining us. we appreciate it. try this. $200, a dog and a $600,000 prize. meet the guy who made the super bowl ad that has everybody buzzing and laughing, too. then the head of on why bad news for toyota could be good news for car buyers. [ male announcer ] for over 50 years, providing you with safe,
4:40 pm
reliable, high-quality vehicles has been our first priority.
4:41 pm
♪ in recent days, our company hasn't been living up to the standards that you've come to expect from us or that we expect from ourselves. that's why 172,000 toyota and dealership employees are dedicated to making things right we have a fix for our recalls. we stopped production so we could focus on our customers' cars first. and technicians are making repairs. we're working around the clock to ensure we build vehicles of the highest quality... to restore your faith... in our company. for more information visit
4:42 pm
4:43 pm
you want a do dor dorito, ye got to speak. speak. c'mon! >> stuart: everybody here is laughing, believe me. that ad airing during the most watched television program in history, more than 106 billion people saw it. now the commercial's creator is laughing all the way to the bank. he won $600,000 for coming in second place in a consumer created ad contest for doritos. all joshua needed was $200 and the dog that you saw there. the commercial creator joins me now. sir, $200, that's all it cost. what did you pay the actor? >> that's all it took.
4:44 pm
the actor is going to get what he deserves. we got nice things playing for him. >> stuart: is the dog yours? >> the dog is actually my good friend's sisters puppy. >> stuart: good friend's sister's puppy. it was free. okay. >> free of charge. not free now, she will want something now. but it was free at the time. >> stuart: $200. that is extraordinary. it looks high quality. it doesn't look like a backroom kind of thithing. it looks well put together. you did it for $200? that's it? >> absolutely. we had all the equipment we needed at hand already and great director of photography that knows how to shoot video. he made something incredible. >> stuart: look, it's funny. who came up with that idea? you put the barking dog collar on a guy and make him choke? we're not laughing. not necessarily that funny, but who came up with the joke?
4:45 pm
>> a team effort. we were sitting around talking one day and reminiscing how when we were young we would put our friend's dog collars on yourselves. you know, the dog would wear a collar, keep him in the yard. we put it on yourself and run across the yard and zap yourselves and see if we could take it. hold it in our hands and electrocute ourselves to see if we could take it. reminiscing from that story and the idea really came from that. >> stuart: who would have thought it was a $600,000 idea? you were second. you got gl $600,000 for coming in second. i'm going to show the audience the ad that came in first. roll that one, please. >> c'mon! mike, what is your deal, man? >> c'mon. you've been riding me all day. >> you're playing like betty white out there. >> that's not what your girlfriend said. >> baby!
4:46 pm
>> was that good because it was funny? but because it was incongruous situation like bowling over betty white? >> a combination of both. when that ad came up i got worried thinking that would be up there near the top for sure. >> stuart: do you think it's a good agenda, ad? worthy winner? >> definitely well put-together funny ad. second place, $600,000 i'm not going to complain at all. definitely. >> stuart: do you think, is it good just to be funny? that is the winning issue here. you just got to be funny. that's it, right? >> it helps. you have to be have the belly laugh. that's expected at the super bowl but if you have chuckles as well -- we had it in our
4:47 pm
ad. >> stuart: svboda. . >> you are pronouncing that perfectly. nailing it. >> stuart: i'll take it as a compliment. $600,000. good man. >> thank you. >> stuart: if you want to score, my next guest says forget toyota troubles. you start shopping. reports of light traffic in toyota showrooms, that means dealers are bound to be slashing prices to seal some deals. joining me now is jeremy anwell, ceo of are you telling me this is a good time to get out there and buy yourself a used prius because everything figures, what, you'll get a bargain on them? >> yeah. it's surprising but we are seeing shopping activity on the prius up, particularly the new one, the 2010. but i think what it speaks to is the american consumers love a bargain and they probably figure if there is bad publicity out there, this is the time to buy it.
4:48 pm
>> stuart: it might also mean that the americans don't figure the ska safety scare is that big a deal and if they gate bar gone, they'll take it. they're not worried about the cars. this problem with toyotas was supposed to reduce their value and make people scared of them. maybe you're telling us that is not the case. >> consumers are smart. when you think of the prius inner particular, after january, when the fix was implemented and i believe they will announce the fix for remaining cars tomorrow, as you said, the consumers are smart and they can figure out whether a problem is serious enough to give them pause or maybe it raepts repre buying opportunity. >> stuart: follows car prices. >> new and used. >> stuart: can i gate bargain? if i get a used prius now, do i get a bargain? >> this is where it talks to be a paradox in a puzzle. as more people are out shopping in many case cases and
4:49 pm
this is the case with the prius we see the price stable. the deal is that there is a deal out there but the reality could be different entirely. >> stuart: is there a possibility we might see the prius used car price go up? >> yeah. right now the prices have been stable. i'm not sure if they will go up. we see a split as a trade-in, the toyota price, the dealer you -- the price you get from a dealer if you trade in a toyota is markedly less. but retail, the pricing seems stage. >> jeremy,, thank you for joining us. >> anytime. >> stuart: you already pay taxes on your income and property. now you may have to pay taxes on services like car repairs, haircutting, dry cleaning. can you believe it? we explain how states are trying to stick it to you, next. 'o'o'o'o'o'o'o'o'o'o'o'o'oo
4:50 pm
4:51 pm
4:52 pm
4:53 pm
>> stuart: states struggling, so now they are going to start taxing. they are looking to start services, like dry cleaning, plumbing, to close budget gaps. my next guest says it's the only way to avoid raising state income tax. jeff barro with the manhattan -- josh barro with the manhattan institute. first, look at what taxes they're proposing. we mentioned plumbing and dry cleaning. have some states imposed a plumbing tax, a dry cleaning tax? >> some states have taxed the sort of services for years. especially a lot of western states with broad. sale tax bases including services like plumbing. maine did this reform recent listened and expanded their sales tax base to pick up services and cover ski lift ticket, movie ticket, hair cutting, access to bowling alleys. that sort of thing.
4:54 pm
there has been some political motion in the states that didn't already tax these services to tax them like state tax consumer goods. >> stuart: so it's a regressive tax, a tax the everybody pays who has a haircut for example. you say this tax is spreading across the states. >> yeah. well, it's somewhat regressive. all sales taxes are regressive because relatively low-income people spend higher percentage of their income. high income people often save lots of their income. you can make the sales tax less regressive applying them more to services because higher income people spend higher income on services as compared to low income people. it's regressive. less regressive than most sales tax. >> stuart: some suspicion you don't notice it because it's a relatively small tax just tacked on there. >> that is the question. not as noticeable as property taxes which come as a big bill once a year and you see how much you pay. income tax you file a return, but it's taken out of your paycheck.
4:55 pm
more noticeable than other taxes that the states are relying on. many states are enacting millionaire taxes, taxes on high-income people and a lot is paid by small business people and is a kin to tax on small businesses and raises the consumer prices discouraging hiring so there are negative economic effects that people feel but they don't know directly it's from a tax. >> stuart: from the economic stand point you like this taxing of services, sales taxes, because it works. and it does bring in the money, because you think that you can't tax income anymore than you tax it already, is that it? >> like is a strong word. better option than other things the states are looking at. ideally it's consumption tax. it should apply to the same rate at consumption once. it was created in the '30s and '40s when service was small part of the economy. now it's two-third of economy and this encourages people to consume more services and less taxable goods. that is bad for economy
4:56 pm
because people make decisions based on taxes instead of what maximizes the economic output. this is a way to raise revenue -- >> stuart: are we going to get to situation where states compete with each other to lower this tax to attract people to their state and businesses to their state? >> it depends upon what kind of service they're taxing. accounting for example, easy to use an accountant in any state. if the state applies sales tax to accounting services you could see competition for that. but dry cleaning and plumbing you need a local service provider and can't be avoided. >> stuart: like a haircut. have to have a haircut in your home state. that's the way it is. josh, thank you for being with us. thank you. >> thank you. >> stuart: that will do it here. we will see you tomorrow morning on fbn, fox business network 9:20 a.m. eastern time. varny and company. we have duke energy chief jim rogers joining me. now he spent big money supporting cap and trade,
4:57 pm
which may now be dead. question: is that money wasted? that's on the fox business network. if you don't get it -- >> demand it! >> stuart: glenn beck is next. host: does charlie daniels play a mean fiddle? ♪ fiddle music charlie:hat's how you do it son. vo: geico. 15 minutes could save you 15% or more on car insurance.
4:58 pm
4:59 pm


info Stream Only

Uploaded by TV Archive on