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Casey, Libby - Host
TO DEDUCTIONS AND TAX LOOPHOLES. SOME ARE POTENTIALLY ON THE CHOPPING BLOCK. JOINING US IS JOHN MCKINNON FROM "THE WALL STREET JOURNAL." WHAT ARE LOOPHOLES...
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| 00:00:34 |
McKinnon, John - Correspondent
BREAKS OF ALL DIFFERENT SORTS. WHETHER YOU LIKE A LOOPHOLE DEPENDS WHERE YOU SIT. DEDUCTIONS ARE THE ONES MOST PEOPLE ARE MOST FAMILIAR WITH. THE BIG...
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| 00:02:03 |
Casey, Libby - Host
A DIFFERENCE BETWEEN A DEDUCTION AND TAX CREDITS? GUEST: A
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| 00:02:10 |
McKinnon, John - Correspondent
DEDUCTION IS SOMETHING YOU TAKE OFF YOUR INCOME. A CREDIT IS SOMETHING THAT IS TAKEN AWAY FROM THE TAX THAT YOU OWE. IF YOU OWE $20,000 IN TAX AND GET...
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| 00:02:37 |
Casey, Libby - Host
IS LOOPHOLES A TERM THAT CONGRESS LIKES? GUEST:
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| 00:02:43 |
McKinnon, John - Correspondent
THEY ARE TALKING ABOUT THINGS THEY WOULD LIKE TO GET RID OF OR SCALE BACK. TAX BREAKS ARE A LITTLE BIT MORE NEUTRAL. HOST: ARE THERE
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| 00:02:56 |
Casey, Libby - Host
ANY SACRED COWS IN DEDUCTIONS? GUEST:
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| 00:03:03 |
McKinnon, John - Correspondent
DEFINITELY. ALMOST EVERY TAX BREAK HAS A CONSTITUENCY. WHEN CONGRESS STARTS TO THINK ABOUT GETTING RID OF SOME OF THESE THINGS, THE CONSTITUENCIES, OUT...
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| 00:03:48 |
Casey, Libby - Host
IT COST THE GOVERNMENT ABOUT $100 BILLION. WHO BENEFITS? GUEST: REALTORS, HOME
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| 00:03:59 |
McKinnon, John - Correspondent
BUILDERS. HOST: IS THE AVERAGE
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| 00:04:05 |
Casey, Libby - Host
AMERICAN SEEING A BENEFIT? GUEST:
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| 00:04:10 |
McKinnon, John - Correspondent
EVERYONE WITH ENOUGH WEALTH TO BE ABLE TO BUY A HOME WILL BENEFIT FROM THIS BREAK. IN TERMS OF THE PERCENTAGES, PEOPLE IN THE MIDDLE CLASS AND UPPER...
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| 00:05:13 |
Casey, Libby - Host
CONTRIBUTIONS. WHO USES THAT? GUEST: THAT TENDS
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| 00:05:21 |
McKinnon, John - Correspondent
TO BENEFIT A BROAD RANGE OF PEOPLE. IT IS SURPRISING HOW PEOPLE AT THE LOWER AND GIVEAWAY. WEALTHY PEOPLE DONATE ALLIED. MITT ROMNEY GAVE AWAY MILLIONS...
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| 00:05:46 |
Casey, Libby - Host
CAPITAL GAINS DIVIDENDS AND OTHER THINGS THAT BENEFIT WEALTHIER IN COMES?
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| 00:05:56 |
McKinnon, John - Correspondent
GUEST: THE CAPLET GAINS AND DIVIDENDS IS THE CLASSIC BREAK THAT BENEFITS THE WEALTHY. THEY THINK IT IS CORRECT IF THEY RECEIVE MORE THAN 90% OF THE BENEFIT....
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| 00:06:22 |
Casey, Libby - Host
STORY FROM POLITICO. HOST:
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| 00:06:34 |
Casey, Libby - Host
HOW SIGNIFICANT OF THESE DEDUCTIONS? GUEST: THEY CAN BE
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| 00:06:43 |
McKinnon, John - Correspondent
IMPORTANT. THE GOAL IS TO NOT GET RID OF THE BUDGET DEFICIT. LOTS OF PEOPLE DO NOT WANT TO GET RID OF THE BUDGET DEFICIT. THEY WANT TO GET IT DOWN TO...
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| 00:07:22 |
Casey, Libby - Host
TOTHEM TO PLAY A ROLE? COULD THEY END UP ON THE CHOPPING BLOCK? GUEST:
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| 00:07:33 |
McKinnon, John - Correspondent
REPUBLICANS HAVE PUT THEM ON THE TABLE. I THINK YOU PROBABLY WILL SEE SOME OF BOTH. THIS IS A PROCESS THAT WILL GO ON FOR THE BETTER PART OF THE NEXT...
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| 00:07:59 |
Casey, Libby - Host
MCKINNON IS A REPORTER FOR "THE WALL STREET JOURNAL." HERE ARE THE NUMBERS TO CALL. REPUBLICANS, 202-585-3881. DEMOCRATS, 202-585-3880. INDEPENDENT CALLERS,...
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| 00:08:25 |
CALLER, -
HI. I LIKE TO TALK ABOUT TWO SECTIONS OF THE ECONOMY THAT PAY VERY LITTLE. APPLE COMPUTER HAS OPERATIONS ABROAD. THEY PLAY LOW WAGES AND HELP LOSE JOBS...
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| 00:09:38 |
Casey, Libby - Host
ADVANTAGE OF DEDUCTIONS? CALLER: VERY
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| 00:09:43 |
CALLER, -
LITTLE. THEY TAX MIGHT SOCIAL SECURITY -- THEY TAX MY SOCIAL SECURITY. HOST:
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| 00:09:54 |
Casey, Libby - Host
OK. JOHN MCKINNON. GUEST: THE CALLER MAKES
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| 00:10:00 |
McKinnon, John - Correspondent
TWO GOOD POINTS. MAJOR CORPORATIONS PAY LOWER TAX RATES. HIGH-TECH COMPANIES PAY VERY LOW TAX RATES. THIS IS A PROBLEM THAT COMPANIES AROUND THE WORLD...
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| 00:11:31 |
Casey, Libby - Host
ABOUT TAX LOOPHOLES AND DEDUCTIONS. YOU CAN TWEET DE HASHTAGWITH THE HASHTAG "FISCAL CLIFF." YOU CAN FIND ALL KINDS OF ISSUES SURROUNDING THE SO-CALLED...
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| 00:12:11 |
Casey, Libby - Host
HOST: DO YOU AGREE WITH THESE COMMENTS? GUEST: I
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| 00:12:15 |
McKinnon, John - Correspondent
DO. I THINK THAT IS BASICALLY TRUE. THERE IS ONE THAT WAS PASSED DURING THE BUSH ADMINISTRATION WHICH WAS A LOW RATE FOR CAPITAL GAINS AND DIVIDENDS....
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| 00:12:46 |
Casey, Libby - Host
NEXT. CALLER: THANK
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| 00:12:50 |
CALLER, -
YOU. I AM RETIRED AND I SAVED MONEY ALL MY LIFE AND PUT IT IN AN IRA AND PUT MY PENSION BENEFITS INTO MY IRA. IF THERE IS A LARGE CHANGE, IT WILL NOT...
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| 00:13:45 |
McKinnon, John - Correspondent
IS A DEBATE ABOUT HOW MUCH CAPITAL GAINS AND TAX RATES AFFECT THE MARKET. IF WE GO OFF THE FISCAL CLIFF AND CONGRESS DOESN'T TAKE ANY ACTION TO SOFTEN...
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| 00:15:37 |
Casey, Libby - Host
MCKINNON IS A REPORTER FOR "THE WALL STREET JOURNAL." HE IS NOW IN THE WASHINGTON BUREAU. WAS A COLUMNIST FOR "THE MIAMI HERALD." WHAT SECTORS WOULD BE...
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| 00:16:05 |
McKinnon, John - Correspondent
THAT PAY A HIGH DIVIDEND. THESE TEND TO BE UTILITY STOCKS. THERE ARE LOTS OF OLD, ESTABLISHED, U.S. INDUSTRIAL FIRMS. SOME OF THE HIGH-TECH FIRMS HAVE...
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| 00:16:53 |
Casey, Libby - Host
CALLER IS JODIE FROM MICHIGAN. CALLER: I
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| 00:16:58 |
CALLER, -
WAS WATCHING YOUR INTERVIEW THIS MORNING. YOU MADE A COMMENT THAT YOU DID NOT BELIEVE ANYBODY WAS INTERESTED IN SOLVING THIS DEFICIT PROBLEM. THAT ABOUT...
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| 00:17:43 |
McKinnon, John - Correspondent
DAYS FOR THAT MESSAGE OUT TO GET THROUGH FROM ME. THERE'S A LOT OF CONCERN ABOUT BUDGET DEFICITS. IN THE PERIOD AFTER THE DOWNTURN, BUDGET DEFICITS FOR...
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| 00:19:34 |
Casey, Libby - Host
MOTIVATES THE CREATION OF DEDUCTIONS? WHAT ABOUT THE OTHER INCENTIVES? MORTGAGE DEDUCTION IT TO ENCOURAGE PEOPLE TO BUY A HOME. GUEST: SOME
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| 00:19:50 |
McKinnon, John - Correspondent
OF THE DEDUCTIONS HAVE BEEN AROUND FOREVER, SINCE THE INVENTION OF THE INCOME TAX. THERE HAS ALWAYS BEEN A DEDUCTION FOR INTEREST THAT YOU PAID. THE GOVERNMENT...
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| 00:20:43 |
Casey, Libby - Host
HOME BUYING? GUEST: IT DOES
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| 00:20:48 |
McKinnon, John - Correspondent
PROVIDE SOME INCENTIVE FOR BUYING A HOME AND IS A LARGE TAX BREAK AND GIVES THEM AN ENORMOUS BENEFITS. IT MOSTLY PROVIDES AN INCENTIVE FOR BUYING A BIGGER...
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| 00:21:23 |
Casey, Libby - Host
TO OHIO, ROBERT IS A DEMOCRAT. CALLER: YES, MY QUESTION
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| 00:21:30 |
CALLER, -
IS THIS. A QUESTION/COMMENT. I HAVE SEEN ALL THESE OUTBREAKS BEEN GIVING OUT. SUPPOSEDLY THEY WERE CREATED FOR AN INCENTIVE FOR THEM TO HIRE MORE PEOPLE....
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| 00:22:26 |
McKinnon, John - Correspondent
A GOOD AND A VERY HARD QUESTION. THERE ARE LOTS OF DIFFERENT FACTORS THAT GO INTO A COMPANY'S DECISION TO HIRE OR NOT TO HIRE. A BIT SHORT TERM PROBLEM...
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| 00:24:22 |
Casey, Libby - Host
STORY IN THE "WALL STREET JOURNAL" WITH THIS HEADLINE. IT ALSO SHOWS HOW A CHARITABLE CONTRIBUTIONS FACTOR INTO PEOPLE'S TAX RETURNS. ABOUT ONE-THIRD...
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| 00:25:37 |
McKinnon, John - Correspondent
BIG DEDUCTION, AND A LOT OF PEOPLE GIVE A LOT OF MONEY TO CHARITY. IT IS ONE OF THE MORE HEARTWARMING FEATURES OF WHAT CAN BE A CLINICAL AREA OF COVERAGE....
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| 00:26:32 |
Casey, Libby - Host
OF THE "WASHINGTON POST" WRITING ABOUT HOW TERRIBLE THE -- DONATIONS ARE FACTORING IN TO THE TAX RATE. AND HE TALKS ABOUT HOW A LOT OF INDUSTRIES ARE...
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| 00:27:07 |
CALLER, -
67-YEAR-OLD SENIOR. I WOULD LIKE TO KNOW WHY WHEN THEY TALK ABOUT OBAMACARE, THEY ARE ALL TALKING ABOUT WHY IT HURTS BUSINESS. BUT THE PEOPLE UNDER...
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| 00:28:40 |
Casey, Libby - Host
RESPONSE FROM JOHN MCKINNON. BUT FIRST OF ALL, DO YOU HAVE ANY LOOPHOLES THAT YOU TAKE ADVANTAGE OF? CALLER: I AM A SENIOR
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| 00:28:49 |
CALLER, -
AND I PAY TAXES ON MY SOCIAL SECURITY AND MY ATTENTION -- PENSION PREPARED HOST: DID YOU
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| 00:28:58 |
Casey, Libby - Host
EVER TAKE A DEDUCTION FOR OWNING YOUR OWN HOME OR ANYTHING LIKE THAT? CALLER: I DON'T
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| 00:29:05 |
CALLER, -
OWN A HOME.
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| 00:29:06 |
Casey, Libby - Host
HOST: OK, THANKS. GUEST: HE MAKES
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| 00:29:10 |
McKinnon, John - Correspondent
AN INTERESTING POINT. WHEN OBAMACARE IS TAKING EFFECT IN THE NEXT FEW YEARS, AND THERE IS A LOT OF UNCERTAINTY AMONG BUSINESSES, SMALL BUSINESSES IN...
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| 00:31:17 |
Casey, Libby - Host
THE CALLS TO SIMPLIFY THE TAX CODE, TO STREAMLINE IT, AND THAT MAY CERTAINLY MEAN TO ITEMIZE THE CREDITS OF THAT TAKE PLACE ON THE TAX RETURNS. GUEST:...
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| 00:31:31 |
McKinnon, John - Correspondent
OF THE TAX SYSTEM IS A HUGE PROBLEM. EVERYONE FROM THE IRS ON DOWN TO CONGRESS AND THE INDUSTRY OUT THERE, IF YOU WILL, THE FINANCIAL ACCOUNTING INDUSTRY,...
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| 00:32:16 |
Casey, Libby - Host
DOES SIMPLIFYING THE TAX CODE AS NECESSARILY MEAN LESSENING THE DEDUCTIONS, CUTTING SOME OF THEM OUT? GUEST: YES,
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| 00:32:24 |
McKinnon, John - Correspondent
IT WOULD. INEVITABLY COMPLEX DEALING WITH THE COMPLEXITY OF THE TAX SYSTEM WOULD MEAN GETTING RID OF A LOT OF THE DEDUCTIONS. FRANKLY, IT MAY BE SO...
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| 00:32:45 |
Casey, Libby - Host
HEAR FROM MORGANTOWN, VA., INDEPENDENT CALLER. CALLER: I AM A COLLEGE
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| 00:32:52 |
CALLER, -
STUDENT. MY PEERS, WE DO NOT SEE A BIG PUSH INDIFFERENCE BY THE DEMOCRAT PARTY OR THE REPUBLICAN PARTY THAT WOULD MAKE -- WE DO NOT SEE A BIG DIFFERENCE...
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| 00:33:39 |
McKinnon, John - Correspondent
THINK THERE ARE BIG CHANGES COMING UP. I THINK THE PRESIDENT HAS DRAWN A LINE IN THE SAND AND LET REPUBLICANS KNOWN HE HAS NO INTENTION OF ALLOWING THE...
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| 00:34:36 |
Casey, Libby - Host
GUEST: HERE IS A TWEET --
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| 00:34:39 |
Casey, Libby - Host
HOST: HERE IS A TWEET. CHRISTIAN CHURCHES ARE NOT THE ONLY ONES AFFECTED BY DEDUCTIONS. HOLIDAY DONATIONS, HOW IS THAT FACTORING INTO THE FISCAL CLIFF?...
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| 00:35:05 |
McKinnon, John - Correspondent
ARE LOBBYING HARD TO PROTECT THE IMPORTANT REDUCTION THAT THEY NOW HAVE FOR CHARITABLE CONTRIBUTIONS. I DO NOT THINK THAT THIS WILL GET RESOLVED FINALLY...
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| 00:35:45 |
Casey, Libby - Host
MARYLAND, DEMOCRATS LINE. GO AHEAD. CALLER: THANK YOU FOR LETTING
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| 00:35:51 |
CALLER, -
ME SPEAK ON YOUR SHOW THIS MORNING. I JUST WANT TO MAKE A STATEMENT ABOUT THE TAX REFORM. IT IS NOT REALLY GOING TO HURT THE STOCK MARKET. IT IS JUST...
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| 00:37:23 |
Casey, Libby - Host
ABOUT ACTUAL CHANGE, IF THERE WILL BE A DIFFERENCE ON JANUARY 1ST OR OTHERWISE, IN TERMS OF TAXES, POLITICS, THE FISCAL CLIFF, JOHN MCKINNON, ARE ANY...
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| 00:37:55 |
McKinnon, John - Correspondent
AND LARGE, MOST OF THEM ARE PERMANENT FEATURES OF THE TAX CODE. YES, THE BUSH TAX CUTS INCLUDE A LOT OF TAX BREAKS, PARTICULARLY FOR THE WEALTHY. THE...
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| 00:38:58 |
Casey, Libby - Host
RANCHO CORDOVA, CALIF.. AND REPUBLICAN CALLER, GO AHEAD. CALLER: FOUR QUICK
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| 00:39:08 |
CALLER, -
COMMENTS. NEVER ONE COMPOUND -- #ONE, WE ARE TALKING ABOUT BILL GATES AND WARREN BUFFETT AND DRIVING SOME KIND OF BENEFIT BY SETTING UP THESE TRUSTS....
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| 00:40:16 |
Casey, Libby - Host
OUT OF TIME. BUT BEFORE WE LET YOU GO, DO YOU TAKE DEDUCTIONS ON YOUR TAXES?
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| 00:40:20 |
CALLER, -
CALLER: OF COURSE. HOST: LET'S GO TO JOHN
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| 00:40:26 |
Casey, Libby - Host
MCKINNON AND GET A RESPONSE. GUEST: I THINK YOU'RE
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| 00:40:31 |
McKinnon, John - Correspondent
MAKING A VALID POINT OVERALL. I THINK THAT'S SOME PEOPLE HAVE CRITICIZED WARREN BUFFETT IN PARTICULAR FOR ADVOCATING A A HIGHER TAXES ON THE WEALTHY...
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| 00:41:21 |
Casey, Libby - Host
IS A REPORTER FOR THE "WALL STREET JOURNAL." HE HAS BEEN COVERING FISCAL POLICY SINCE 1999. PRIOR TO THAT, HE WAS WITH THE JOURNAL IN FLORIDA AS A REPORTER...
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| 00:41:54 |
Unidentified Speaker, -
IS REPORTING THAT THE PRESIDENT WILL ASK MEMBERS OF THE DEMOCRATIC NATIONAL COMMITTEE TO APPROVE HIS TOURS OF DEBBIE WASSERMAN SCHULTZE TO CONTINUE LEOPARDI...
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NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.