tv Forbes on FOX FOX Business January 6, 2013 9:00am-9:30am EST
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i like adams more than bens. ann forbes on fox. >> forget tax hikes in the new year. is the bigger worry the 77,000 pages of new regulations for making it illegal to own more than four cats and releasing wild hogs in the wild and using or serving single serve water bottles and regulaons health care law. is it about to dry up the job market? hi, everybody. welcome to forbes on fox and go in focus with teave, rick and elizabeth and rich and morgan and victoria. now, rich. there are a lot of silly things and important rules and regs that are going to affect small business necessary america, right? >> you are right about that. you should lk at financial regulations which makes it
still hard for small businesses to get loans. health care regulations, obama care is it adding a cost burden everywhere you look behind every nook and cranny. environmental regulations that is killing small businesses. california farmers are ruined in the protection of the certain in60s and labor regulations and last year we saw the national labor regulation war against boing. it paralyzes new hiring. >> rick, the president claims he speaks for small businesses. aren't they hard hit by these. >> actually, no. i was a maul businessman for a very long time . i got to tell you. i have the stame hastles and theres never regulations.
let pee point this out. a lot of things are state base silly laws. but don't impact the economy . last year was an election year, we have a small number of regulations that are hitting us. >> you bring up an interesting point. emac, the's new list of regulations that are 77,000 pages was issued on the friday before christmas. trying to get buried in the holidays. >> it was released between april and october. these rules are going to cost the economy 128 billion . that is it one estimate out there. even russian czar said i don't rule russia. my miniczar's do. rich has it right. burrcrats are justifying and creating n rules . and i lk to them.
they have to hire tir own burrcrat to dole with the government burrcrats. >> emac said you need new administrators and czars. >> maybe it would add jobs. but it is important to point out regulations are necessary. even governor romney said that . porly -- case in point. oregon is coming out with a law that makes employers not discriminate against unemployed applicants that is it important. we have seen discrimination there. that is good for the economy. >> steve, you can always justify thingings. but the bottom line regulations are a tax on business. are they not? >> they are indeed and people who love regulations make it a choice between anarchy and reguleses.
in term of job creation and having bankings. i know a midsize bank had to hire a thousand people of compliiance and that means fewer loan officers. regulations are a burden pure and simple . the p.m. claims to be for maul business and jobs and yet he comes out with a basket full that hits at jobs. >> rich put it in the right wa n from the beginning. they have to hire someone to keep track of all of the regulations and that is hiring that is not going to growing and productivity and growing the economy. is it sneaky stuff. you can see it wreaking havoc in the university system. every one teacher, you have re than or one administrator. >> that's where my tuition
money is going. >> they haveg wellulations to keep up with. >> rh, you are right there and made a lifetime of studying the way business works. do you hear people complaining and saying this will prevent me from hiring more people because i have to deal with new regs. >> you are right about that. if you deal in bits and bites and an allegormic business and escape all regulatory detention apratus. the companies that use energy and extract fromhe grod and farmers and manufacturers and shippers, you know, those companies that constitute the bulk of the economy. it is it hit. it is fine if you are making application for the iphone and then you are not hit so much. >>ick, you were a small businessman and the folks who
make things. you were in the intellectual property realm. >> it is fasnating and the reason we have regulation and it is people who are in the position to do harm to their customers have the regulations. why? because before they had regulations they were doing harm. there are rules that protect the public safety . thcongress and senate is breaking its own rules by not passing a budget . that's the issue . in issue, it is not a lack of rulebut a short annual of enforcement . that is not the same as making the economy more affective. >> the trouble with you, john. your did maching and. >> i see you taking your
point. i have gone up in washington. very often thape make sure they have jobs later on >> i so how that is a burrcrat. >> we are not talking about those rules. we are talking about health reform which is its own mini government. we are talking about the states making up their own rule to enforce the government's ruleses about health reform. it is what small businesses will have to pay for. >> stove, in the last 90 days, the federal government issued more than 550 new regulatory proposal. you can scher pick and find good ones in there. but all of those might require paperwork on the part of business. >> it is it a burden, dvid . durcracy love to expand .
when the british navy declined in size after world war i. they got mauler, but the bureaucracy got better. and have you soin a regulatation that wasot necessary? >> i have to the tell you. they have built i business the yores are i am noturehey have to vircomication . po. >> that assuming the rolling regulator is smarter. they are on or throw cops they one of the most hennily regulated industry and yet it was the
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system and put in a flat tax. revenues doubled and economy started to boom. it would be like the productive work and succes. there is a lobbyist . i said many times. i don't have an allergic reaction to the flat tax especially into proposed by the god father of the flat tax with certain adjusents for lower come. we have a page tax code that is corrupted and perverted. >> by president obama you mean. >> no, no, no. >> yes, yes, it is more complex now. >> how do you assure me that the same corruption will not take place. if we go through a flat tax.
>> we went through the ridiculous process to raise the tax rates. the tax code is bigger than than before. >> of course, it is it rich. there are many more pages as a result of this. wouldn't a flat tax be better? yes, i would. rick, i am surprised of the cynicism. i thought you were forward optmistic guy. why not try for a tax code that is moral and efficient and transparent and bri citizens together instead of pitting them against each other come is the case now it is so out of control that is it the country is at risk. >> victoria, the tax corrode had special breaks for the big goys and were placed closely to the president. provisions tt apply to just one company? >> yeah, it is it full of weird loop holes and we have a
more complex system system as a result . it hasn't somped our problem. that the government is spending much morehan it can imagine taking n >> you can tax millionaires in a 90 percent rate and it would not get you what you need. we are demonizing wealth recreation. that's what the actor is doing it. is fed up on success andital ept in france . thinking of fleeing to belgium and russia. >>ho cares? >> the fact is, when that much money starts leaving country and multiply that by thousands of people. you can see a lot of capitol leaving the country and that is going to hurt. >> what i like about the flat tax the most, david. everybody pays in porportion of what they aaron . they have skin in the game in terms of how much the
government spend and bureaucracy gets. so many people are paying no taxes and a low porportion of the income and taxes. they will vote for any government program and. they are not paying money into it >> emac. we hear about fairness. isn't it better to do it this way and don't have thepecial provisions. >> france is screaming about jeb pedu . show paid million necessary taxes . we have france here in the united states. we have california . rich people and wealthy people . leaving california because of the taxerates and problems are going on there. >> yurb raare request has a nat tax . the i.r.s. to do with it. even what was for it.
he needs to optinize the deductions. he needs five paper towel rolls >> if you are against special interest gets special deals. how can you be in favor of a complicated tax code. >> i am not in favor. >> but we'll point one thing out. french high court ruled that the super tax that pardue wants to leave is illegal. >> 75 percent. >> but the politicians are pushing for it >> they will bring it back next fll. >> he happens to be the leader of the country. >> in it didn't work . i am all for. >> it was the wording. >> if you're guaranteeny we will not end up with a 75 page code. >> it will be weeks before we
sort what is in there. >> you do i want want capitol allocated based on decisions. >> it is ape tax. >> thymes there is no wigging for the win ares or students. helping them tow get a job. some of the cashing in crew feels it is a great thing for job creators. i hope one of your new year's resolution is to save more cash . prices on the stuff you bay every day are going to keep spike handwriting. this is america.
so the party is over . 20$3 is underway and stow are the spiking coasts on everything . prices on everything from groceries and tolls and buses and ups are way up . the price spike hittingars and electronics. no matter what the government said inflation is for real. >> we have got hit for three and half years. value of the dollar against the trading partners is down 11 percent.
they are up 35 percent over the last four years. that is a huge spike in food inflation. i went to buy coffee. i hadn't bought it $4.99 and to $8. it was inflation. >> i don't think it is necessarily inflation. but there is more to be at play. we had a bad year for crop. that pushed prices of meat and groceries up . there is more than just inflation going on with the prices. >> the governments are one of the sources of inflation . look at the cost of subways and things folks cannot avoid and they are in large part controlled by the government. those price are going up. >> sure they are, david. i love the thing about droughts. every time you get a crop in north korea it is it a
drought. we have inflation . the federal reserve is responsible for it. it doesn't always get the same symptoms. they trash the we had a going out of business sale. when you undermine the dollar. things happen. we do have money that is worth less. >> i have to tell you where i buy my coffee. i am, i am, i will show you and help you buy it there are two different numbers to look at it. general inflation 1.6 or 9 percent. it is food inflation that is the issue and projected four percent. but like it or not it is tied
to the drought we had in the midwest. that's the rean . you can't blame anything but that. >>here is it a lot of things you could blame. all of that money that the fed has been trending. that has to have an affect on the value of money does it not? >> it really does. steve makes a great point and made the point in the speeches not one in a thousand of people understand the new nature of inflati. we have low rates of inflation . purchasing power is not keeping up with prices and a better way to understand it is stagflation. we center lousy growth economy . not keeping up with prices and inflation all of the same. >> that's not totally true. look at the jobs market. they are up higher than the inflation rate. >> coming up. new year and new price spikes . our informers have the stocks