tv Your World With Neil Cavuto FOX News April 12, 2013 1:00pm-2:00pm PDT
the lapd will no longer confirm cases and news outlets must make formal requests for records. the dow is trying to recover. >> this just in. the obama tax returns are out and it looks leak the first family did okay. paying an effective tax rate of 18.4% last year at a time when the top federal rate to which the president would qualify was 35%. keep in mind, that rate has since been jacked up to 39.6%. so, how, you ask, did the guy who pushed for that, end up paying a raise of about half that? how is that? that was all perfectly legal, just like it was all perfectly legal for mitt romney to pay a rate that really wasn't that much less in retrospect, but remember what a big deal fat
cats, supposedly dodging the tax man then and ask yourself why the president, paying not much more, isn't remotely a big deal now. either for him or the media covering him. >> neil: welcome. glad to have you. here's the deal. barack and michelle obama paid taxes on $609,000 and that's how you get to the 18.4 rate. that's where the president's critics are only starting to get irate. >> obviously the president gives a lot to charity every year and that brings down the effective tax rate. when you walk through the numbers, that's what brings that number down. as you noted, the president's salary is $400,000 a year. the extra income that gets him up to $608,000 a year, is based
upon book sales. book sales are actually down in 2012, down from 2011. you see that effective tax rate of 18.4%. as he pay 112,000 in federal taxes. he gave $150,000 no 33 different charities, including fisher house, which helps wounded warriors and their families in to 2011 his total gross was $789,000, because his book sales were higher in 2011 then 2012. charitable donations back then, $172,000. federal taxes paid, 162,000, effective tax rate in 2011 was 20.5%. that was a little bit higher than the 8.4% in 2012. and with vice-president biden his total gross income in 2012 was $385,000.
chairable donations less than the obamas. he paid $87,000 in federal taxes with his it would, an effective tax rate of 22.8%. so the bottom line is, as you noted, there's been the administration pushing the buffett rule, basic principle in tax policy that an executive, chief executive like warren buffett, shouldn't be paying a smaller effective tax rate than this secretary. this suggests the president and vice-president are paying a pretty low effective tax rate disspeed the rhetoric. one area they're good at they got their taxes done early. >> neil: none of this is illegal. i want to stress the president is taking advantage of charitable contributions, as he, should as everyone should, and the rate is what the rate is. but i do remember during the campaign that when much was made of mitt romney's relatively low rate, although in percentage terms, a few personal points away from the president today.
a rate that would have been much higher as well for him had he not given as much as he died to charity. i just see goose verse gander here. >> sure. there's going to be the hypocrisy argument when mitt romney was in the region of 14%, there war lot of democrats making a lot of hay. the obama campaign leading the charge, when it turns out the president and vice-president aren't paying very much more of an effective tax rate than mitt romney did over the last few years. however, the white house will burn back and tide last -- push back by saying the president is in favor of changing the tax code. he wants to work with the speaker and others. but he is going live under the current tax system and basically teen those charitable deductions high to keep his effective tax rate low. of course the romney folks last year were saying, he was living under the same tax system as well. but nonetheless was getting beaten up for it. that had to do with offshore
accounts and not charitable deductions and and dividends and capital gain. that was then, very different store now. >> to market watchers. i guess you see a different fat cat. >> this is the fattest of fat cats of hypocrisy. during the campaign, as you and ed pointed out, there was mitt romney was literally a villain for paying such a low effective tax rate and used smart tactics -- >> much of mitt romney was dividends at lower rate so all the income was taxed appropriately. >> so toe me good, strategic planning and that is -- >> what would you want the president to do? pay more in taxes to make up the difference? >> no. i would like to see what charities he donated to on that
$150,000. that would be interesting to see what -- >> neil: you raise a good point. we were there covering the campaign, and i do remember this line popping up a lot. let's listen to this. >> over the past kuo years i've signed legislation that will reduce or deficit by more than $2.5 trillion. more than two-thirds of it through spending cuts and the rest through asking the wealthiest americans to begin paying anywhere share neil nursing school that wasn't the -- >> neil: this isn't the one i was talking about. >> one of the wealthy americans he was referring to, so if he thinks he should pay more fair share he should donate more to charity or go out and earn more money outside of being president. >> neil: when i asked prominent democrats, to discuss this, a former budget wonk in the white house and the federal reserve,
to talk about what is a fair share for the wealthy. she says we're getting there. it's close to 40%, we're getting there. but if the president of the united states is nowhere near there, doesn't it send a mixed message. >> i would say it's a very mixed message, and as a small business owner i would say that most small businesses are probably paying an effective rate much her -- higher than that and faced with rising medical costs to keep staff on, rising regulations. so maybe we should take this as a time to focus on the tax system to stimulate small businesses. the president shouldn't be paying less than small businesses that are trying to grow the economy. >> well, all i know is that you're going to go after those who are taking advantage of a tax system perfectly legally, and you and i take advantage of
the same laws, got to change something. >> you said it. when the goose got the gander. >> whatever. we'll see how it goes. hope you guys are busily filing your returns as we speak. in the meantime do any of you remember when nancy pelosi said this? >> taken together it will save taxpayers $1.3 trillion. >> neil: well, the group that brought you obamacare is pushing for a new healthcare bill to, well, tackle obama care. the expense of obama care because, well, it's more money than anyone could possibly care. let's ask michelle, who is not at all surprised. if i got this right, michelle, a bill to fix a bill would cost our -- too obscene to put in the original bill. >> that's right, neil. the affordable care act, of course, was anything but, which many of us warned from day one
of this national debacle. a fiscal sinkhole, and now families, u.s.a., which is the far left group that supports all out, full monte, socialized medicine, is back trying to recruit a diverse group of members to lobby for, guess, they'll dahl it the affordable care act and we really mean it this time. >> neil: think about what is going on here. a number of democratic congressmen who are saying, about these medical device taxes, a lot of our constituents are stuck paying for that and we want that out of there. so apparently they said, let's see what we can do to get it out of there but they have to make up the revenue. so they go, let's hit up the rich. we have already done that. so they're run out of openings so what they're saying here, think, is let redo a big chunk of this in a separate sidecar
deal, i think, that would address all this. right? >> yes. if you read the actual quote-unquote proposals they're floating now that all of the healthcare trade magazines and blogs are heavy breathing about, it's not really clear what exactly people are signing on to they've recruited the ceo of essential health and some other as stencil business groups, and no matter how they talk about cost saving and cost effectiveness and reform, the singular agenda of families u.s.a. has been to move us toward a british and canadian style socialized medicine system. so they see the failures and the collapse of the aca, remember, again, the context of kathleen sebelius telling us the healthcare exchange implementations costs are double what they are.
double, triple, talking about overall costs of obamacare in the next ten years, costing some five or six trillion dollars. >> neil: she was blaming a lot of that on republicans. >> of course she was. >> neil: you cannot look at this -- i just do the math and i think, you cannot be promising coverage for preexisting conditions, getting your kids on your policy until they're like 80 -- i'm kidding, 26 -- but all of these gimmes aren't freebies so if you think premiums are going to stay the same. if you think everything will be hunky-dory and no costs go up and then you have shock and awe when we saw shock and awe-inspiring medical bills. >> yes. >> neil: i don't know what to tell you. >> that's right. and then, just pulling back even more, of course, the problem is that you have this massive spending with the government
health programs whether it's medicaid, which families u.s.a. wants to expand, schip, all of the drowning costs of medicare, and these people refuse to talk about any kind of market-based reforms. instead what they continue to push for isposing top-down mandates and burdens on private providers of private health care professionals and we see what the end result has been, on top of, of course, the medical device. excise tax, even though it has been repealed, has already resulted in real world cutbacks, layoffs, and severe impact on r & d in this country. >> i'll end this segment on this note. you see two different stories with the same message do as we say not necessarily as we do. that would be analogous to me
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>> if you >> neil: well, fox on top of this maybe being the weekend that he launches a missile. secretary of state john kerry saying he doesn't like the north korean leaders language. the secretary of state is in the region. what is the administration bracing for this weekend? the former deputy assistant secretary of the army. what do you think? >> let me tell you, we made a serious mistake last year when we laughed at this guy and kind of downplayed the significance of it. there's always been a lot of theater and drama in north
korea, with kim jong-un, and the father and grandfather but kim jong-un has a much more mature nuclear and ballistic capability i believe makes this the greatest nuclear threat the united states has faced since thes ofcold war. >> neil: the way we demean these characters, and we can do a lot of damage. this guy has the weapons. or could. how close do you think he is and how much damage do you think he has potential for? >> he is a dangerous nut, neil, and the missiles, othe two missiles on the launch pad right now in mobile launchers, eight in reserve, moving others throughout the country. that's the one we're the most concerned with that he has
engineered it so it can accommodate a nuclear warhead. the significance of the nuclear bomb test in november was this. it is a miniaturized nuclear devise, similar to what iran has, and we see its origin back to the infamous dr. khan, and the other systems, like a missile with range of 50% greater, does that have the capability to carry a nuclear warhead? >> what is the option we have? i guess we can try to shoot it down. if and when it happens. that invites a host of other things. what do you think we should do? >> a couple things. he does go ahead and fires the missiles, or aegis command system will be able to very quickly see the trajectory, whether it's land or water. if it's going over water, let it
fly -- land in water. if it's going to land on land you have a tike out the missile launchers. >> neil: what does thousand do in that event? >> let me tell you. china helped cause this problem and they have been talking out both sides of the mouth. on one hand they helped craft the language of the u. on the other they helped iran launder money to pay for the nuclear bomb test in february. along the north korean bored is the largest chinese mobilization since the 1950s. we need to send a louse message to china and get the entire world to focus everyone's attention on china and say, you helped create this problem. it's time for you to own up it to and help fix it. >> neil: it would be a real mess if they can't. >> big-time. let me tell you, it's only going to get worse.
got here prior is out of luck. i don't know. i need a legal eagle to sort this out. are they going -- >> they're out of luck, absolutely. if this bill goes through, and it's going up next week, they would be out of luck. the date -- >> neil: a lot of them got here earlier. >> the date doesn't make sense. you can have from the passage of the bill -- >> its not a typo. >> what it's meant to do is thwart people coming in illegally now, tons and tons coming in, it's going pass now and we have to get over the border before it passes but you can say pass it next week and say, of the date is going to be a week ago. something like that so narrowing the statute of limitations rather than saying back to december 2011? what happenin' 1986 with immigration tree form, the same concerns at that time.
>> neil: nebulous date? >> they had a date maybe, too. so there was a cutoff point, and civil rights organizations were up and arms and the same thing will happen here. >> neil: i'm too young to remember that. don't start quoting lincoln again. >> your mom and i were talking. >> neil: i have a variety of crackpot their riz on this. -- theories. one is if you're illegal and are here, you had love to become a citizen. and the next best thing is nobody is trying to kick you out of here and that's all. and for the viewers, whatever proposal comes out, i think the message to me is, you're not going anywhere. no one is shipping you back. and so what do you care? just let this process work out? >> i think there will be civil rights organizations saying this is an arbitrary deadline. why this deadline? why some people can get
citizenship and others can't. >> neil: they'd like to be citizens but they want jobs but if no one is going to kick them out, and a lot of them in states where they are here illegally, they providing lots of ben fittes. >> exceptover talking about the people themselves. i'm talking about the organizations. aclu. >> neil: i'm sorry. i'm not interested -- >> i'm an organization person. >> neil: whether these organizations are behind or against this or not, let's just stop any of them from recognizing what should be very, very obvious, you're here, you're safe. >> you're not going to get citizen citizenship but you're fine and it's a long-term plan. a 13-year plan for people in this category. can't have a criminal record, have financial stability, all things that make sense. do we want to give -- >> neil: a lot of them are already getting documentation that is necessary.
>> just speeds it along. >> neil: but they have an advantage over someone new coming in. >> absolutely. >> neil: so they are adding a lot. >> they are. >> you have a caste system. if you were here before 2011, you are good, if you came after that, you're not getting shammed out but -- shipped out but you're at the end of the line. >> neil: i'm not going to argue. she is ivy league but doesn't act like it. i'm not, and i do. >> and you do. >> neil: when we come back, this is your -- before the damage, the danger -- you see this thing -- when killer tornadoes send everyone running, we're talking to a guy who goes running toward it. most people think that after an accident, you'll have to pay five hundred bucks for your deductible.
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away live to this -- or tape that was fed into us -- this guy, i couldn't judge distance but looked really close to this thing, and i know, having seen a couple up close myself, how fast tornadoes can travel. certainly that must come into your thinking when you're taping these things. doesn't it? >> well, there's a lot coming to your attention when you're taping these, and one of them, the first and foremost is to have an exit strategy. because that was moving roughly in his direction. it could have either just missed him or hit the location. there was no way to have known where it was going to go. so that was very dangerous to be filming this. >> neil: there are rules to this sort of stuff? when we were watching and following this, i'm thinking, looked -- tornadoes that are extremely thin or the low end of a spiral, but this thing seemed
to have covered a lot of area. it was moving very, very fast, moving directly toward him. is there a point at which you say, brave as you are, wayne, i'm out of here? >> you tea to take a lot of things into consideration. the road you have, if there's a shelter ex-if -- if you're in the car and also the speed of the storms but you have to take that into consideration weapon you're out there. it's kind of like playing a big chess game in the middle of nowhere, where these pieces are continually moving and you may have other storms coming into play, so you have to know what you're doing, not to put yourself in the path of one of these. >> neil: seems like this guy knew how bad a storm this was. sometimes experts say they can look ominous but don't end up being ominous but he was noting things being sucked up into this thing. too you look for that o injures -- what are you looking senate. >> well, it's very difficult to
rate the tornado by a video. someone from the weather service has to doon assessment, and if it hit any buildings they can use the structures to determine the intensity of the tornado, or if there was a radar truck in the area that could get a velocity on it, which i don't think was the case with this one. so they would have to look at the structure, and there is a scale they use to determine how strong the tornado was. >> neil: okay, warren, you be safe. everyone else be safe. but three deaths resulting from this storm yesterday and we're in the middle of what could be a very busy tornado and hurricane season. >> neil: retail sales dropping. is this the case of a lot of tax folks throwing in the towel? well can maybe. what's going on? >> well, consumers have pulled back and it's a combination of
them having less to spend because the payroll tax holiday is gone and so now they have less money coming in every week, d. >> they've had less since the beginning of the year. >> but now we've also had a few months of fear mongering. washington gging back and forth, and talking about all the cuts they have to make and how absolutely horrible it's going to be, and while -- >> neil: do people really seize on that? i'm not going to go to the department store. >> are you kidding me? absolutely seize on that. it's a combination of the amount of money you actually have to spend and that perception comessed into play, should i be spending now? there is a good outlook for me in the future? the jobs number keeps looking better but that's optics bass the jobs that are create aren't very high-paying jobs. so when people feel like i've got a job but it's not make me that much and i'm not sure i'll get another job, they're less likely to spend. >> neil: but the data is such
that at it still better -- it's bumpy but better than a year ago, that the trend is kind of our friend. not a great trend but better than the trend in reverse. you think the trend is going in reverse? >> depends who you are. if you're a person with a lot of money, in the market the trend i is you've fine but if middle america -- >> neil: who is spending in the market? the fat cats? >> do not feel the wealth of a rising -- >> neil: funds part of it. >> more than half americans have nothing in their 401k accounts so when the stock market rises maybe they feel good because it feels better but it's optics because they're not seeing their own wealth good up and when they keep hearing people talk about it's just horrible climate out there the government is going to spend less, going to be less money for them to bring home, why are they going to go
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there, in late march, early april, to get a hepatitis shot. a pastry chef may have contracted the disease while traveling and accidentally thread it through dessert. customers who got the vaccination are now mulling a lawsuit. others who haven't, well, i'm sure they are as well. do they have a case? leaguele eagle rebecca and stacy here to try this. do they have a case? >> they have other big case. state and federal health codes require that food preparers wear protective covering, sometimes gloves, engage in sanitary practices in the kitchen, wash hands, all those things we take for granted. those are legal requirements and if a restaurant didn't enforce those requirements and allowed someone to prepare food against -- without doing what they're supposed to do that is pure negligence, neil. >> neil: what if the chef nor the restaurant knew at the time
he hat help tied tis? >> if they didn't know he had hepatitis they can't get in trouble for knowingly letting one of their employees work in a kitchen while they were ill. but if the plaintiffs, the customers, can prove the kitchen wasn't up to standards and they didn't follow the health code on the books, negligence right there. >> neil: rebecca? >> i think the attorneys that are bringing up all of this trauma and drama are not doing the right thing. >> neil: isn't what you lawyers do? >> i practice criminal law. i don't like everybody suing everybody for nothing. in fact they put out what called a food poison journal and in there they said there were onlyy 65 cases of hepatitis a in all of new york city and only one to two are from a food preparer, which is telling us right off the bat that none of these people probably contracted
hepatitis. >> neil: hugh do you know? >> there are rules. like stacy said. >> wait a minute, wait a minute. hold on, hold on. >> i'm jd. >> go ahead. >> they problemle -- there have been no cases reported, and a lot of people have gone to the doctors, and if this individual who didn't have any signs of illness whatsoever, which means, as stacy said, the restaurant couldn't have nope this individual was infected, because the individual didn't know. if he washed his hands and if he wore the gloves like the rules required, the lawyers and their food poison -- that's how they advertise themselves -- journal, it's not going to be -- that's they indicated -- >> neil: we'll get to that. >> it's not trauma and drama. >> i almost missed that. >> it's not trauma drama to good in a restaurant and have a piece
of baked good and then learn the person who prepared it has hepatitis. that's trauma right there. >> but they didn't. >> wait a sect. the fact is that you have to go to a doctor, get you blood drawn, get tested -- >> neil: what if they're nose wrong. >> there's not going to be anything wrong. >> neil: all right. that's the case. you're saying just going through the process is enough for you to sue like crazy. >> you can sue. you don't expect to walk away with a million dollars. but -- >> potential inflection of emotional distress. negligence. >> negligent infliction of emotional stress. >> so, rebecca, you see see demobile stress? >> sure but doubt you think everybody -- neil nursing school
i just ate at the restaurant and the owner says the next day, neil, get the hepatitis test. and would say, what the hell? >> have to be precautionary or they don't contact you. neil nursing school that do would not be a good day for you. >> the fact is i had to go into a for's office, get me blood drunk get an injection, wait at home for a week for the results of the tests -- >> neil: you would sue yourself. >> i'd be mad and i'd want something -- sue myself. i want to be -- >> i'm not saying thousand office dollars. i'm saying there's negligence. neil thank you both very, very much, and sneaking in the feces comment, i almost got by that. just left the president's budget director fumbling. >> your repeated statement that your budget raises taxes and reduces spending is utterly
inaccurate. >> senator. >> yes, it ills. a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪
the white house budget director dodging it on the deficit? you decide. >> well, your budget increases the deficit by $8.2 trillion over ten years? >> yes or no. >> the deficit. >> your own number. i asked you -- >> increase -- increase the deficit by 8.2 trillion? >> are that is -- >> you don't know what is in your number? >> there are lot of numbers there. >> neil: to the alabama republican doing the grilling, senator jeff sessions. this is something used a lot by those on the left to claim that
as a percentage of gdp, deficits are coming down. the debt is coming down. but you were quite right to try to look at the numbers there. the dollar figure is growing. what did you make of that? >> a very evasive performance and i was very disappointed in it, primarily because they continue to misrepresent what this budget does. for example, they claim $1.8 trillion in deficit reduction? it has a trillion dollars -- 11.1 flint new -- 1.1. million in new taxes and increased spending 1.5 billion, reducing less than $100 billion of the current deficit course we're on, which everyone told us is unsustainable debt course. so -- >> neil: you don't buy it when the president says oar the budget guys say the trend is our friend and the deficits are
coming in a little smaller and will be for the next two years. and while they -- regardless how big they are, they pile up the debt and quite rite. the math equation is looking better. you don't buy that. >> actually, no. the next four years, this deficit gets worse. over the next -- the full time with the president in office he increases spending over the current baseline we're on. a current trajectory of spending we're on. >> neil: when they're bragging about deficits that are well under a trillion dollars now, seems like a kooky bragging. what do you make of that? >> the deficits have always been projected to fall because the economy is projected to grow. we had another 600 billion tax increase in january. so you expect some decline in it. but by their own numbers they submitted a couple of days ago,
interest on our debt in the ten in year would be $660 billion. the highway billion is 40 billion. we spend 100 billion on education, interest would go from a couple hundred baseball year now to -- >> neil: no one is doing anything, senator. everyone takes vows for finally in the president's case maybe looking at a different formula for social security or running in the growth of social security but in ten years, it's going to be higher than now. >> we'll go from 17 trillion in gross debt to 25 trillion in gross debt and does nothing in the out years where the entitlement programs begin to really bite and put us in an absolutely untenable position. they're really nothing except change cpi would help a little bit but only hundred billion in the first ten years. >> neil: not much you can spit
at there senator, thank you very much. >> neil: well, long before i became the sex symbol of all things stocks, it's hard to believe but some found me stocky, or dorky, so to all those ladies out there who turned me down for dates, the ones who could, i don't know, fill an aircraft hangar, hang around. i'm really going to make you cry. @
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>>. >> neil: finally, i know this might stun some of you, when i was in high school, many thought i was a nerd, can you believe that? i think i asked about dozen girls to my junior prom before one said yes -- no, it was not my mother. bu for some reason they didn't too find me -- what is the word? attractive or remotely human. i kind of looked like a fat norman, i really did. still, no matter what i looked i stayed on often with the ladies. my standard line was something like this, you are the quarterback but i'm the real deal. built for comfortable, ladies. that is what they would ignore. little know they some day i would be a super laker -- but if
fools couldn't see through the diamond in the rough. anyway, enough about me. back to how society makes mistakes only overlooking handsome loves like me. i notice when everything hits the fan, not just for the quarterback says no. those same girls that were chasing the jocks are looking desperately for the real jewels that have long moved on, jewels like me. where did neil go? but again, this commentary isn't about me but i could talk forever. this commentary is using me an as example about point of life. think when times get tough we not only seeks our comfort food we seek outcome for the guys. i know this. guys luke me. it's why i do so very well in the middle of financial crisis, when we come on weekends when we
do special coverage, all of you drawn to my sexy stability a rock in a hard place and the draw isn't only comforted guys. comfort lots of stuff. look at the stocks that have been leading the weird market parade, shall i say the ones that have, not sexy names, health care, consumer staples, according to the folks that crunch this stuff, they wants kicking sand at the beach and sexy names, not doing well. and they roscoe defenses filled with all these boring names is doing better than riskier investments the dynamic index by three full percentage points this year. stable beating sexy by 3 percentage pois.