tv The Willis Report FOX Business December 10, 2013 6:00pm-7:01pm EST
♪ ♪ gerri: hello, everyone, i am gerri willis. tonight on "the willis report." the market and what should investors really fear? also, our special series this week of a users guide to taxes. important information on what to do now before the new tax year begins. and what not to buy. we are breaking down the list of children's toys to avoid. we are watching out for you tonight on "the willis report." ann the mako. ♪ ♪ ♪ gerri: we begin tonight with a rare case of bipartisanship in
congress. yes, you heard me right. house and senate leaders have just stuck a budget deal, most likely averting a government shutdown that would threaten for mid-january. with us now is rich edson. >> they made their deadline. this is a deal between congressional leaders have signed off on this thing. it still must pass the house and senate. it basically says topline spending levels and from there, congressional appropriators going to figure out where to spend all that money. it removes what is known as a suppressor. the automatic spending cuts. and in doing so, it increases user fees and you have to pay an extra $250 for an airline ticket, federal workers will likely have to pay a little bit more into their retirement plan and some long-term structural
changes that get savings of a few billion dollars it basically will be spent in the first two years and now is the process of the announcement and we expect it to happen any minute now. a deal on that level, congressional leaders will sell this to their caucuses to try to get this through the house and possibly through the senate. and if not, possibly a setback through next week. gerri: thank you, rich edson. thank you for bringing us the news. tonight, we are fact checking your president. top democrats blasting the gop for criticizing obamacare. they say that republicans have not offered any alternative. are they right? we have a senior fellow at the manhattan institute who joins us now. what are folks saying about this and how they say republicans are not ponying of the ideas.
>> at least they used to say that we will replace it with something better. but there is not even a pretense that they will replace it with something better. >> the republicans have criticized a day after day and they have no replacements for the affordable care act. >> the republicans have proposed a lot of different alternatives and i think where the democrats have a fair point is that republicans need to come together on a consensus plan that would replace obamacare. gerri: let's take a look. some of them are comprehensive, tom coburn, paul broun, on and on they go, lots of suggestions and ideas and you mentioned the fact that a lot of this boils down to repealing obamacare and that it would be tough to do. and there is other stuff in there that is creating state exchanges and tax breaks and money to people that are in
trouble and paul ryan has been very vocal on his ideas and do none of these measure up? >> depends on what your priorities are. if your priorities are matching obamacare's expansion of insurance coverage to the uninsured, most of the plans proposed do not live up to that, except for those proposed by paul ryan and they offer a universal tax credit that would be available to everyone. gerri: you know, it overcovered, and plans that are too expensive, it doesn't let me keep my doctor and i can't keep my insurance plan and it is remaking the entire world of health insurance in this country and i don't think that i see it as a net positive. living up to this, i don't think i wanted to be less. >> i think it's a good thing for everyone in america. we can do it in a market oriented way that is much less
expensive that gives people the choice is that you are talking about so they can have a choice of doctors and hospitals and deductibles and all of the things that can be in the plan. it forces everyone to buy these really expensive comprehensive plans that people don't need. >> you need coverage for getting pregnant? >> no, you don't. gerri: interestingly, i think that is what you're talking about, that you would be in favor of this be my guest, appall ryan plan to reform medicare is similar to what the obamacare exchanges are. and what he has proposed is a universal tax credit and you could basically use it as a voucher or a tax credit to shop for the coverage brandywine and the government would stay out of it and not really force you to buy a particular type of plan. >> at the little bit more of an
incentive by the consumer. which is one of the problems i think people have with obamacare. and a lot of people do not like that sort of thing. >> if you make this credit the same for everyone, you over subsidized the healthy and you need to tweak it along those lines. gerri: as we're speaking we are speaking now, there's a press confereece going on reporters and enrollment results for november. what are you expecting? >> to pay some enrollment has increased from the initial results from october. there was 100,000 enrollees in october and lets it was 300,000, that would be probably with in-line of expectations and if it was substantially below that, i would worry. >> of course, $300,000 for november does not give them traction on their goals? >> that's right, they would have to pick this up to get enough
people enrolled to have the stability that they want. >> we still don't have this backend, right? >> that's right, a lot of people are signing up. they think they sign up for a plan. but if the insurers don't know that they sign up for this, they are not covered. >> thank you for this. it's always great to see you. >> stores and shopping. our store is going too far to get shoppers in their stores? qualcomm unveiling a new product and so how is this happening? >> hello, welcome back. ♪ ♪ gerri: so is this where we are
headed? >> yes, absolutely. i'm glad you use that clip and that's exactly what retailers want to do. gerri: so i can download an application first, right? >> yes, they have these that would be the first that communicates with applications, knowing where you are, what you are looking at and what items are nearby and they can say, that item you just look back, this is where a special purchase that you made a month ago is or this is what is going on in this area right now. gerri: we decided to do this story and there's already an apple version. are they significantly different
or the same thing? >> it's very similar but different people. one of the biggest images is that they are such a big maker of this that they can integrate other things, meaning that these sorts of things are not just in a retail environment, but other types of home automation things are happening as well. >> it is a crazy world. until i was thinking about this today. would i be willing to give up some information? because you have to download the application until people that you're going to use it. to get special deals and promotions and would you do it? >> i think it depends on the situation. will i be getting those notifications? well, i might do that. especially if i'm checking prices and it might be useful to know this or that is on sale right now and we know based on your past shopping history that this is something you might like. but i think that where it starts
to become creepy is when you walk into a place and you haven't downloaded an application you are and you are not expecting it and it just comes out. gerri: i hate when they send you e-mails all the time in your inbox is crowded with the mouse and you were in there one saturday year. and it's like, there may be more advantages to the retailer than they realize. we have more to come this hour, including a new warning from winter drivers and the lowest level in 20 years and a warning for mom and dad. stay with us. ♪ ♪ ♪
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to your child. with more on this, we have a health advocate and we thank you for coming on the show tonight. we appreciate it. tell us before we dig into this to show you exactly what you should be looking out for. but before we do this, what kinds of things should mom and dad be looking out for? >> typically choking hazards and we have seen a lot of toxic metals on the shelves this holiday season. we want to look out for things like magnets and make sure that the toys out loud and can damage a child's hearing. gerri: let's start with this. what's wrong with this? >> unfortunately it violates the federal standards and lead is a very powerful thing and this includes putting toys in the mouth. very likely that the toddler could be putting their toy in their mouth.
>> i had to spend some time looking at what this thing actually is. what is it really? >> and have lots of fun activities for kids and allows them to change the channel. but fortunately it is just really too loud for young children. hearing damage can be incurred at this age is the one that is a big issue that people don't necessarily think about? >> absolutely. if you party got this at home, put a piece of tape over it. and try to minimize that sound. gerri: okay, so you can get it, they take precautions.
and so what about this next toy? >> that's right, it's an ingestion hazard. as you can see, very high powerful magnets that can be adjusted by children and you can see that it just barely passes out. unfortunately, if a child in just two of those, the need for surgery can occur. the. gerri: okay, the child could choke on this. how big are these things? >> these are very tiny. what's disturbing is that kids over three years old up to 12 years old can still put toys in their mouths. we see that these come apart very easily and have these little small parts and what's
disturbing is that they are rounded. and so what we suggest is that parents make sure that you are testing your toys with a toilet paper roll. and it will keep your child nice and safe. gerri: tell me more about how you guys test this. i'm not going to know whether a toy has led in it or not. >> yes, it is banned by the federal government. and unfortunately as you can see, we still have some toys parents can'tgh the cracks. carry around the laboratory and so stick to cloth toys and the wooden toys and natural toys.
gerri: that is a great idea. >> shiny vinyl can have led annette and other metals. gerri: one other thing i want to point out is the u.s. toy recalls are actually down, which is great news. your hazards to kids. thank you for coming on the show and it's great stuff. i hope that people go to your website to find out more. >> thank you. and coming up later in the show, it a users guide to taxes. knowing the details before the end of the year so you can take action. and how do you do that? much of the country is in a deep freeze tonight. to help savon koestler pares coming up next. ♪
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gerri: frigid weather blasting the east coast today, leading to widespread closures, 1600 flights canceled across the country and in chicago residents are facing the coldest weather in 20 years. one to 5 inches of snow, falling so quickly that it has created a nightmare for a morning commute. lauren, welcome. i have a new car, what do i need to do? eisai check the cooling system?
>> cooling system that was if it was checked six months ago is probably fine. but i would certainly have it checked. depending on what you purchase, you probably have lifetime coin. but otherwise, it's highly likely that it needs to be checked and possibly replaced. you can find a technician i can do it for you at a reasonable price. >> synthetic oil, it absolutely the wisest choice. gerri: there's a lot of fluids. going out to start the car in the morning, 6 inches of snow on the ground and the car is not starting. >> that is a big headache that you will have. and so the last few times, now
is the time for you to get your battery replaced and here's a tip to save a little bit of money. by the battery and you can get it replaced for free. gerri: a lot of it is really complicated these days because there's all of these electronic components. one thing that is critical is the windshield wipers. they always get broken and messed up and you have to be careful about that. >> that's right, 80% of your driving decisions are based on your driving decisions. you don't see all the moving components. the best ways you can get, and the auto parts store will do this for free. the white headlights look a little bright, those are truly the best headlights.
gerri: i hate that. and you also say invest in winter tires. >> it makes sense to invest in a good set of winter tires. i'm not talking about the cheap tires because you get exactly what you pay for. you're getting $65 worth of snow tires and i promise you, i'm in buffalo today and it is snowing like crazy and my daughter is driving home from college and she has snow tires on her car and she says that it's amazing. if you're going to be driving in snow, get winter tires. the. gerri: you are the perfect person, i think.
gm has just put a woman of the head of the company and what you make of that? >> i think that she's an excellent choice and she has worked in the full global lineup. i have to say that the timing is interesting the fact that this is a positive thing, she is a perfect choice and she will make some positive changes for gm. she is young and enthusiastic and has great ideas, so i'm looking forward to it. >> we are all going to be watching and it will be so interesting to see and she does look really young. thank you for coming on, it's always good to have you on the show. the. gerri: are you keeping your car in the garage and traveling by
air? if so, pony up and for some cities uiq did pretty deep. and number four is minneapolis. and travel related taxes more than $18 per day here. and 19 bucks a day and travel taxes and the city to travel in portland, oregon. visitors pay $23 a day in texas. okay. well, if you had in california or florida, if you want to have a brake on travel taxes, that is the place to go, especially burbank, where you'll pay less than $2 per day. coming up next from a users guide to taxes with more changes ahead and we will have a tax
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spiriva helps me breathe better. does breathing with copd weigh you down? don't wait to ask your doctor about spiriva. gerri: leaders from both sides of congress struck a budget deal to avoid a shutdown. all members will vote on it. rich edson has been following the news or not that is right, they were presented for tomorrow on capitol hill. and the plan is to get this thing through the house. speaker john boehner said he is adjourning for the year tomorrow. and he's hoping to get this through the week and we spoke to a senior leadership aide asking what are the prospects of getting this through and a
person acknowledged that this is a deal between democrats and republicans and they have to vote to get this through. basically what this does is it that budgeting levels within a couple of years. you know that we are living in the age of sequestration and automatic spending cuts. basically this allows increased spending in spite of that sequester and it allows $520 billion to be spent on this next year and what it does is there are $85 billion that are part of this deal better part of longer-term spending increases and it requires federal government workers and the military to pay more to their pensions. and that all adds up to $85 billion. congress is going to spend $63 billion of that over the next couple of years as a way to
alleviate some of those automatic spending cuts. $23 billion is left over and that is what will go to deficit reduction as part of this deal. there is deficit reduction in the tax increase -- there is no reason why they would support it. the government, they want to come together and he did so here, to forge a bipartisan agreement and now it is up to the lawmakers to pass out. gerri: thank you for coming on with that. thank you for coming on. >> by the way, started there and not tomorrow. that was the official start of. [laughter] gerri: okay, thank you. a new study is out showing who pays what on average people got
more than they put in. now we want to know what you think. here's her question tonight. log onto gerriwillis.com and vote on the right-hand side of the screen and i will share the result at the end of tonight's show. it is the holiday season. the last thing they want to do is think about taxes and tax planning. but you're going to want to hear about this. we are here to help you get ready with a users guide to taxes on your ultimate guide to year-end tax moves. today we are going to tell you moves you could make. dominic, it's great to have you here. before we get into good solutions, let's talk briefly about big changes coming. >> yes, people are going to be
surprised. a lot of ancillary taxes and all of them are going to hit you hard by april 15 the next year. most people are flying under the radar, they don't know and they're going to be in for a rude awakening. he won a lot of people are running their taxes ahead of time, trying to figure out what this is going to be. and what we are hearing is that more and more people are going to be paying 50% of their income or more in taxes and i means one out of every $2 to the tax man? >> it easily can get into that kind of range. so you have a couple weeks left in the year, a couple of moves and is not enough, think positively and take a little time out of your schedule and focus on this. gerri: let's start with income. you said that yo to reduce your income under 2013 schedule?
>> yes, you set your 401k and during this time, that is kind of like on autopilot. you get the w-2 form, he put this away, you can put away $17,500 if you're under 50 years old. most people don't get to that number and you have an opportunity here. go to hr, increase the amount of withholding, take part in the year-end bonus and dump it into the 401k and if you are over 50 years old, then you can get another 50 or $500, $23,000 disappearing after wto. gerri: this is money they save yourself the tax. okay, so another thing. can we delay this bonus for a couple of weeks? >> yes, sometimes you can do
that, if you don't have, you don't know. do you wait until next year if you asked for this year's. gerri: what if i'm sending out bills and checks to people. do i do that? do i not do that? >> most operate on a cash basis. if you deposit that check on december 31, is this year. so as an advisor we have calls every day and i had one today. i need 30,000 dollars for my ira. if i send it to you now, it's 30,000 of taxable income this year. if i send it to you january 2, it flows into the following tax year. give it some thought. gerri: we look at this statement and the accountant doesn't know it's on your statement. 1099 form does not show a
position that has not been sold. so you have to tell your cpa to you on this work and if it's worth it, sell the stock. government will give you a tax benefit. >> okay, deductions are important. we losing a lot of deductions next year. >> out of the hurdle and obamacare comes along and knocks 10%. let's take a look at the expense of the paid this year. prescriptions, insurance, social security, add them all up. if you're close to that, pay the doctors in advance and get those expenses all. because it starts all over again on january 1.
and we hear the commercials on tv, donate the old car or the old bulb that you don't use anymore. the reporting on this is a little bit more complicated and tricky, but make sure the institution you are dealing with is legit. and you can donate property and get a tax benefit for doing it. you can donate this property. it doesn't have to be cash. he won one of the things he say that you can take a deduction on from the law says. >> yes, this has been a huge one. a lot of people did not know what their loss was from the hurricane. a hurricane, tornado, fire, we have a 10% hurdle that we have to jump over.
but anything above that is tax-deductible. gerri: you are you're going to get a little break there. >> these are legit and documented and appraisals and the whole 9 yards. gerri: i'm so happy you will be back with us later in the week and we thank you for coming on tonight. that's good stuff. okay, more information, go to gerriwillis.com. lessons we should've learned should learn from the bernie madoff scandal. the five-year anniversary in one of the most followed analyst on wall street will join us with why he says don't fear. he is coming up next. ♪ ♪
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economy, inflation is still below the target and they could use that as an excuse to wait until the first quarter of next year where they could choose to get started. >> you hear some of these that want to get started and that has been, you know, a huge fear of professional investors and even a lot of small investors as well. people are going to sell off stocks and so many people believe -- and i hear this from the viewers all the time, it's what the federal reserve is doing that is keeping the stock so high. do you agree? >> well, the market would not be where it is without the fed. i concur with that. and the economy would not either for that matter. but on the other hand, earnings growth has been strong since the bottom of 2009. the stock markets are up, earnings are up more than 150%.
so i think that earnings are the main reason that the stock market is up. but that has been a help. and i think that they are anxious, as you have pointed out, virtually all of the governors to get those tapering process started so we can move on. but i think that they will only do it if we have respectable news on the fundamental side. so i think that i can kind of when both sides, if you will. gerri: for americans, the real concerns about the economy and jobs and we know that the labor participation rate has been under 64% for 23 months, a lot of people still looking and not finding the jobs that they really want. we can't couple of good data points. and when you look at growth, we had one good gdp report. that is not a trend, that's just one good report.
a lot of the americans are questioning how strong this economy is and isn't going to put food on the table. >> that's a great set of questions and no question about in my mind that we are going to get it slightly better with growth in 2014 and not enough to satisfy most of us, particularly those looking for jobs. this is in the wake of the bursting of the credit bubble that is still with us. therefore i would argue that we're going to have a modestly better economic pattern and somewhat better revenue and enough for the stock market to be okay. it's two different things. >> they sure are. >> a lot of people say how can you explain a strong stock market in the wake of a mediocre economy and the answer is that is normal. it leads to inflation concerns and this is the sweet spot.
gerri: how much of a thoughtful we have on the federal reserve says that we are done and it's over? >> i don't think much at all. for instance, the stock market may have a moment or two where it causes, but back in the month of may, we had a hundred basis points rise in stocks may dip a bit, but not a lot to talk about. the one i would like to keep you here all night. thank you for coming in. we have more to come. my "two cents more". it's been five years since the ponzi scheme of bernie madoff occurred. we will have that next.
gerri: five years ago the ponzi schemes of bernie madoff made headlines. with weight you can avoid being a victim, thank you for coming on the show tonight. so what are the lessons and what should we know, having read a lot about it and people tend to forget these lessons. >> yes, they do. the main thing to do to avoid this kind of scandal. here he was, a wealthy jewish mandalas targeting other wealthy jewish people and its sort of a feel-good kind of approach that
approaches you at a vulnerable place and he would say that you are jewish, i am jewish, we are both wealthy, we understand each other. i will tell you what, i will be conservative with your money and that's another smart thing he did. he did not over promise. gerri: just making that promise was such a red flag for people. >> in the stock market you cannot promise that. he was running such a complicated strategy. many people would've said, i'm not giving you a penny. that's another thing. complicated strategy. gerri: talking about red flags, we talked about a wealthy florida congressman that lost $18 million in the scheme.
this guy was no idiot, but somehow he managed to get ripped off. so what happens to smart people, people that aren't smart, what are the red flags you should be for? >> well, in his case it was difficult because this guy was known and had no reason to suspect this. so anytime you hand over your money to someone, you are vulnerable and when someone is taking your money from you, you have to know exactly what they are doing and as long as you are looking out for people and people approaching at times when your most wonderful where people run affinity scams. so you have to watch out for that. gerri: i think it's great advice and people have to be on extra special guard. the scammers are out there and they are looking for you.
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gerri: a new cbo report. we asked this question on gerriwillis.com, is it fair? beshear on to logon for your online question every weekday and finally, it is a heartwarming giveaway that has gone viral. nineteen hidden cameras so take a look at these pictures. lo and behold, their wishes were granted just a few hours later. giftwrapped on the carousel, it was unusual. a marketing gimmick, no doubt about it. but isn't it time for companies just to be a little bit nicer to us? and how much goodwill could
consumer product companies by by offering a give away to needy families or advertising clearly about the products? is the real deal on these deals? many companies have rigorous charitable programs and what about treating consumers a little bit less like the enemy and more like valued clients? american families are still feeling the tension and the american middle class is still under assault and it's a topic that we also discussed here tonight. maybe it is time for all of us to be a little bit nicer. more decking the halls together. that is my "two cents more". coming up tomorrow, it is not just federal taxes, we have changes with the state income taxes and we look at the one place where we might be able to get a tax break.
that is it for tonight "willis report" and thank you for joining us. don't forget to ddr the show if you cannot catch us live. have a great night. lou: president obama in johannesburg, south africa. paying their respects at the memorial service for nelson mandela. the president and first lady are on their way home, returning late tonight. i am lou dobbs. ♪ ♪ ♪ lou: of the president and first lady returning from the nelson mandela moral service. the president and mrs. obama are expected tt land at andrews air force base at approximately midnight tonight. the president president of michelle obama spent most of