Gerri well, if you watch the show anytime at all ive been warning about this for some time. Now it i taking a step closer to reality. Listen to this. The government wants to raid your retirement account. Thatsight. In his new budget to congress, next month, the president will propose a broad range of new tax hikes specificallyargeting people who have spent years saving for rtirement. Probably like you and me. Ric edelman, from edelman financial will be here in just a second to talk about that. But first, the white house has officially thrown in the towel on deficit reduction. The president s new budget contains more spending and more tax hikes. The center of the president s an to reduce the deficit, a cut in Social Security benefits, now gone. Here with the latest is heritage foundations romania. Great to have you here. Were talking in the show tonight how the government wants to crack down, have people save less money for retirement. My question was, what do you want to spend that on . Now i understand that the president s budget will be far, far bigger than the last. How big will it be . And what does he wan to spend on . Were looking at several tens of billions in additional spending on education, on manufacturing cters. I mean if youre thinking about it, big government, government knows best and those kinds of programs that the president is trying to put out but this is no surprise. I mean the president has said in 2012 when the deficit was a trillion dollars, that he didnt think we needed to worry about the debt. So this budget just basically shows his priorities for the next year and beyond. Gerri heres what we hear. 56 billion in new spending slated. And i have to tell you, it is same oldsame old. They say they want to spend it on education, i. E. ,eachers, important support group for the president. Programs for stimulus spending that didnt happen. How would you grade the ppesident on his spending habits . How effective is we our tax paylor dollars . This president has presided over the largest peacetime deficits in u. S. History. The debt, the public debt, what we borrow in credit markets has doubled during the president s first term in office. So theres a lot of spending. We have this massive stimulus package and this is another budget that tries to double down on that failed stimulus and expand government. So the president wants to increase spendingmmediately and his successor will have to have, will have to deal with an even bigger mess and clean up a bigger budget mess we already have. Gerri were spending more debt that is absolutely true. You have tt right. But i bet there might be new tax increases in this as well. What are you hearing . Absolute certainty. I mean his last budget had about a trillion dollars in tax increases. So it might be around same amount, perhaps it could be even more. I mean the preside really wants to double down, especially on retirement accounts. Which is interesting because the president also had this myra proposal. On one hand he wants to encourage Retirement Savings. On the other hand he puts disincentive in place for people on upper end for their retirement. So what is it going to be . Gerri i coin agree with you more. Well bring in ric edelman, Edelman Financial Services to weigh in on this conversation. And ric, i was so excited you were available today to talk about this because when itomes to the Retirement Crisis in this country i believe the last thing we need is the government, the federal government saying, hay you know what . Spend a little less. Save a little les invest a little less for your retirement. Thats what we would li to see. What is your view . Youre absoluty right, gerri. You dont strengthen the caboose by weakening engine. It is bizarre pointf view and i really dont get it. The notion is we need to be creating incentives for peoe to save for retirement. Not putting ceilings on them to encourage discourage them from saving. Gerri i know lot of people out there, both of you would say, oh, but, gerri, t rich people, they will save no matter what. It doesnt really matter. To you first, does that logic hold water . I think it does to a certain degree but heres the real problem. If you have rich people without incentives to save, you know what theyre going so do . They will kill Retirement Plans at work which means lower paid workers wont have a Retirement Plan to contribute to at all. That is the concept. Gerri you next. Yeah, another problem is that you will have double taxation. The reason why you dont want to tax savings is that when you have these tax deferred accounts, that money gets taxed at end when people take the money out of 401 k s in retirement. If you tax them now and tax them again later, you ha double taxation which discourages savings. We ought to be encouraging savings. Gerri absolutely right. I covered this for, i dont know, how long, 20 years. No one ever said to me, you know, gerri, the problem with this country people save too much money for retirement. Rick, to you as i look at this, what i see is the government saying, you know, really a 1 solution. Really there is is income inequality. Theyre introducing political rhetoric into financial policy. I think that is a bg mistake. What do you say, ric . Yeah, is a real problem. We need to keeeep politics away from personal finances of ordinary everyday americans. If we are going to put limitsr restrictions within policy, do it in a simple, easy to understand, palatable way, not confusing and complex the way the president s proposal is. So not only fails on its thesis, it fails on its execution as well. Which weve seen happen in other areas of the Obama Administration. Gerri speaking execution, you know normally when you s to somebody, i will take away your tax break or raise your taxes and here is what were going to do with it. In this case you would expect them to say, we are going to raise taxes on wealthy people who already save for retiremen and give that people to people who are undersaved. That is not what were saying at all. Well use it in the big kitty and use it hower i want to use it. Am i correct . Ome programs the president wants to boost like head start, his own administration put out a study that it had no real effect on those children t wasnt even helping. It is very expensive federal day care program. We ought not to be wasting money on failed Government Programs any longer. Gerri rick, do you think it would make more sense, and i had people suggesthis to me recently, quite ait in fact, to raise limits on how much people can set aside for saving, instead of bringing it down . I mean that has been the policy for years now, as you say, okay if youre over 55 you can save even more. Every year we seem to raise the limit. 17,500 for most folks you can set aside. Why do we have limits . Why not let people set money aside . Lets face i that money goes back into the economy. Theyre investi through mutual funds in companies all ove the country, frankly all over the world . Youre absolutely right, gerri. We have to remember why we left the europe and cam to america in the first place. It i because it is the land of opportunity. There is unlimited potential in e United States. You can be anything that you want to be with no restrictions, no ceiling, no limitation. Why on earth would the government want to create programs that put a ceiling on the American Opportunity . Gerri and you . The one ceiling we do need is a debt ceiling but Congress Actually handed the executive a blank check. So while American Families are cutting back to live within their means, the government has iminated, raised debt limit for entire year. That is rl proem. If we have one ceiling it should be on the national debt. Gerri thats a great point. Before you guys go i want to show some number here. Average 401 k balance according to fidelity, 89,000. Center for Retirement Savings, Retirement Research at Boston College says it is far lower, 42,000. Not enough money. We need all the help we can get from the federal government to save more. We dont need barriers. Great job both of you. Thank you. Thank you. Gerri and now we want to know what you think. Heres our question tonight. Are Retirement Plans under assault by greedy politicians . Log on to gerriwillis. Com. Vote on the righthand side of the screen. I will show the results at the end of tonights show. Another example of the crisis in the public pension system, the public pension system. Detroit today filed its plan to dig o of its 18 bell dollars debt. The citys 18 billion debt. The pl which the court must approve before it can get out of the biggest u. S. Bankruptcy in history. Fire and Police Officers take 10 cut. City employees take 34 cut and bondholders would recov only 20 of their money. Kevyn orr rewriting all pension rules. Did sony steal from American Idol contestants . We warned you about the recall of hot pockets with meat deribed as unfit for human food but are there hidden dangers in the meat . Details coming up. [ vet 1 ] im a returning veteranooking for advice. [ vet 2 ] to start a career. [ vet 3 ] write a resume. [ vet 4 ] translate my skills. [ vet 5 ] and make my military experience. [ vet 6 ] a real asset. [ alex ] acp advisornet has built a nonprofit Online Community to connect our veterans with business professionals, like you and me. So why not share your valuable experience . Please go to acp advisornet. Because their Service Deserves our service. Gerri o do you really know what is in your meat . Nine Million Pounds of beef in hot pockets across the nation. There they are right now. Well the slaughterhouse responsible for food unfit for humans, that is what it is called is being bought out by another meat company. Is there ever a good reason to eat processed meat or have we having a cow over nothing. We have attending physician from Winthrop University hospital. Doctor, thanks for coming on the show. Ive been laughing because weve been laughing about this story but it is not funny. I know people who eat these products all the time. Is it concerning that the folks who produced this thing, that it is changing hand in the middle of what is a huge investigation . I mean absolutely, its a huge concern gerri. Im so glad w are actually talking about this topic, processed meat, fried foods, saturated fats is huge health coern. There is huge study that came out earlier last year looking at 10 countries, that were thousands of people in the study, 13year followup, red me, processed meat, particularly saturated fats, all of these result in early cardiovascular deaths. A huge number of cancer are linked to eating red meat. Gerri in this country we find lack of inspection is one of the big props. In fact t department aarently has a shortage of inspectors in meat and poultry plts all over the country. Were hearing reports, that it is not that they dont have the positions open, they do. Theyre just not filling them. At end of the day work is not getting done. Is this concern to you as well . Its a concern. Of the big problems it is about access, availability and costs. Unfortunately process meats tend to be much cheaper than ornic meats, healthier meats. There is lot of problems with meat. We dont know what is ineats. There are very toxic chemicals that are linked to a number of cancers, breast cancer, prostate cancer. Bowel cancer in particular. Gerri i hear what youre saying but if you make me stop eating my bacon it is over. Here is what the companyhat is really in the crossh of of thiompany had t. Eo well not d any previ were ting aew opera with n usdaicense an new protocol scratch theyre prong to d better. But ofple are processed put toget is it abo proceeat harmful . R t so this sub gerri it thtion aulatof ce. In added to meat to result iteing processed. Cured meats, sked meats. Any meats in Plastic Packaging contain a lostalt and chemicals. Gerri theyre preserving it in part, right . Thats right. Essentially the processed meats are processed in order to make the fo have a longerhelf life and also potentially to make the food more palatable. These are not high quality meats. Ju increasing risk of cancers. Gerri can it be all things in moderation . Absolutely. The study that looked at this, huge study looked at processed red meats, they are advising patients who ate more than 1 off grams a day at great etf risk gerri how much is that . That essentially equals two sausages and rash of bacon. That is 160 grams of processed meat. Gerri sausage and bacon in one day, that is not nothing. They said you should take 20 gra or less. A rash of bacon will get you 20 grams of processed meats. Anybodmore than youre exceeding government guidelines that came out of the study. Gerri so to get down to kind of bras tacks because you talked about the disses i could ultimately get, right . Sure. Gerri i would over time develop, so what is it that these processed meats do to your body . Well these processed meats contain chemicals called carcinogens. Carcinens are chemicals that result normal cells changing into cancer cells. We know there are many chemicals like that. Organic meat carries much less of aisk. These chemicals are in processed meat. There is lot of hormones in processed meat as well. Theyre not controlled. Half the time we dont know what is in there. The salt, the resulting in the preservative process, those could also add to cancercausing cells. Its a big problem. Is a big pblem. Gerri try to keep my bacon consumption under control. Dr. Phillip stick to broccoli. Gerri so boring. Thank you for coming on tonight. Appreciate your time. Youre welcome. Gerri later in the show, is the left encouraging a nation of slackers . Housing numbers continue to disappoint but is it only weather to blame or is Something Else going on . Is the house of cards about to collapse again. Gerri takes another hit. Will bad numbers bring down the rest of the economy . Expert advice for buyers and gerri another hurdle for housing today. Of sales of existing homes plunging to their lowest level in 18 months, dropping over 5 month to month so are more serious days ahead for housing or is this just a blip on the radar . Joining us with advice for buyers and sellers is brian from halstead properties. Thank you, brian. This is not pretty. This is not what we led to believe would happen. We thought housing would go through the roof. Here we are at 16 down. How do you explain it . There is no max market. We all know that. Gerri yep. I think this is more of a blip especially in certain regions. What weve seen, there is no inventory out there. Peoples incomes have not increased way we want them to. Gerri no. But housing prices and homes value have. People have more equity to dip into but stilll hard to get thoe loans. It is really tough right now. Gerri so there is a lot of headwind. There is. Gerri experts said, gerri, that Winter Weather it just killed the market. We cant gt anything sold. That is partf it. Some. Numbers weve seen. These were sales done two months ago. So that isovemberdecember. Christmas shopping and all of that, gets colr. People go inssde but the fact is, certain markets,ouston, new york city, im in every day, through the roof. Gerri really . There is just nothing to buy. Gerri so the prices drift ever higher because the is no inntory . Thats it. It is really, you know, that is what is driving it. Gerri i want toear from an economist we talked to the other day. All right. Gerri this is fellow is optimistic about the u. S. Economy, American Economy and believes housing will drive it forward. This is jason benerly. Listen to this. Sure. Were optimist for housing for a fundamental reason which is were underbuilding housing. The Adult Population is growing in the u. S. Growing by a million and a quarter per year. There are teardowns in housing that are roughly 300,000 per year. So just to keep up with underlying demand, we need to build hsing at about a 1 1 2 million rate and were not. Other len oy building it at half of that rate. Gerri so there is jason and he is saying hey, im so optimistic about this market i think housing alone pretty much is going to propel the u. S. Economy by 4 this year. 4 gdp growth. Do you see that . That is a lot of growth. Look, some ssy the howing market go us into this mess. Gerri yes. And getting us out of itoo. Gerri that is big thinking from the government and this is why government always supported housing right. Sure. Gerri once you get people buying housing and theyre buying furniture and rugs, grading. Absolutely. Building of homes which we dont have enough of right now. Everyone said we would have this big second wave of foreclosures. Gerri, where were they . Thank god. Still a lot of inventory on bankers books. Weve seen that. But you know we talked about the Housing Starts number. Builder confidence is also down and those seem to be people that youre relying on in your forecast to get this party started. Gerri but look at builder stocks. Look atoll brothers. Look at those stocks. People are putting their money into these stocks. This blip is not an indication that the recovery has halted. Its a caution but every market is different. New york citis very different. Houston, los angeles everything is local in real estate and that is the thing. Gerri what is your takeaway advice for people, that want to by firsttime home or second home . Sure. Gerri where is the market rong and fundamentally sound and gat place to buy now . I like vegas, i really do. Vegas, baby, i really do. You cant time market. I tel my buyers all the time you cant time a market. If it makes sense for you and your family gei it is about your own finances. It is about your own finances. Others are not in position to buy a second or third e home. International money is flooding they believe in our economy, i got tell you that is not a bad thing. Gei not ad ba ink this. Would i rather see americans believing. Heck i would. I get many, many more americans than i do foreign buyers but i welcome all types. Im a sales guy. At the end of the day you cant time markets and real estate im very bulli on it, very bullish. Gerri im not surprised. You better be. Thats it. Brian, thank you. My pleasure, gerri. Ank you. Gerri happy weekend. And you. Gerri coming up American Idol falling out of hamon any with sony over unpaid royalties. Our legal eagles weigh in. We debate the connie that the econy is not suffering from underemployment, but listen t this, over employment this, over employment stay with us. Hey everybody heardisease affects one in every three women in america. But you can fight back. Theres no time to lose. Mothers, sisters, daughters, families and friends, its time to shout louder, stand stronger and demand change. Lets go. To the batmobile. Dang it. To the invisible jet. Dang it. Together we can put an end to heart disease. Its time to go red for women. I could use your help. Yay learn more from the American Heart Assocation at www. Goredforwomen. Org gerri since therecession and millions of americans have dropped out of the labor force. Is this the end of worker . Liberals say this may a good thing. Here to discuss it is eer credit stregist and american of surprise institute scholar. I think this is fascinating with growing sentiment of economists state and commentators who say at the end ofhe day that it is a good thing so they ca do other things we can rewrite the tax code to make sure they have money for food and a roof over their heads d drive a car. What do you say . That is of th problem with 6. 6 Unemployment Rate that is a problem. But we became the greatest country on earth because wee rewarded hard work. Were not doing that anymore because they are notpaid wages they can live on. 3 Elizabeth Warren has the best idea to reward productivity tie it to the mimum wage that would be 22 per hour instead of 7. 25 instead of 10 and cents. Gerri wait. Isnthis the most productive nation o the planet . Or tweet already the most productive . We are very productive. I donthink we should raise the minimum wage but with the earned incometax credit or other subsidies. Gerri wage subsidies . At are you talking about . Talking about the earned income tax credit as a more direct subsidi to direct benefits to workers this is better than the minimum wage we have a problem knugh jobs not enough jobs and. I butthe reason be weeshore jobs, technologs improved and people are unemploy or underemployed. The specific economists look at the problem to say that is the way the world supposed to be. If we take that money from the 1 and give it to others then they will be free to right symphoni and make the world a better place. I think they areincredibly hopeful and i dont really understand their thinking. It seems li the court ethic of america is hard work pays. Right to. But wee not paying for hardork people of working tw torki hey cann even walmart is considering raising the minimum wage was then that will open the door for everybody. That is whats great we consistently reported hard work so people could make a living. That is why we dont have the middle class we used to andhe economy is lagng with no cumers. Gerri first of all, walmart told us they always look at the minimum wage issuend caps said they would raise those above the minimum wage. What makes more sense . Finding more Job Opportunities and expanding the economy so people hire more people or give out money as wage subsidies . I rtainly think is the economy improves more people will go back to work. With 20 unemployment with Young Workers and 10 with adults that are at minimum wage jobs iteemso pay 40 percent more for every hour is not the best way. Gerri that is not worth of wanted to go with the whole conversaon but the idea to redistribute income in order to allow of large portion of the workforce to sit on their keister does not make sense because our history is they use work as the organizing force and with out its people have problems with no motivation. Why do you think you are here and what do you want to do . Where you hear this argument is in europe for there isuch higher Unemployment Rates and in the United States we are high. We need to get back to the basics to create more jobs and employ more people andrew for those people. Gerri more jobs. Michael . We need to reward work. She launched businesses to employ those minimumwage workers and i think all of Society Needs to do that the earned income tax credit but not minimum wage expansion which would cost jobs. Gerri have a great weekend. Thank you for your time. Transcripts released by the Federal Reserve show a rare behind the scenes lookout the officials stilts with the crisis the fed released transcripts of 14 scheduled an emergency policy meetings ld 2008 as the crisis unfolded. Its standard policy that is to be released after five years. Back then the fed policy meeting on seember 16 20081 day after Lehman Brothers went bankrupt the officials were struggling to figure out the magnitude and bernanke said im decided the confused and a model but i think the picy is looking pretty good. I think the current fed funds rate is appropriate. But by december it was sinking it was the bad. The bid meeting bernanke said at the start as you know, were at a historic juncture for the economy and federal rerve the crisis is severe despite extraordinary efforts not only by the fed but other policy makers around the of world. It is not a normal financial downturnn now janet yellen what does she think back then . At the september 16 policy meeting she was the president of the bank of San Francisco and was present on her outlook but she said there was potential for more turmoil and Downside Risk but back home plastic surgeons and dentists know that patients are deferring elective procedures. She goes on to say reservations are no longer necessary and highend restaurants and at the Silicon Valley country club th a 250,000 entry fee with an eight year waiting west new members struck at 13. Gerri pulling back the curtain at that pep talk that tough te. Have a great weekend. For what you need this to know for the tax season and royalties for the america idol seniors but is it legal . Next gerri allegations of greed and corruption in rocking the innocent and music business americ idol sings the blues suing sony for not cough coughing up enough money many stars claiming they are not making enough money off the Digital Stream but do they have a case . We have our fox news legal analyst. Explain why somebody is getting sued. Because sony says theyre selling them but they are not their licensing of brilliant that is important because if they get three sets of the dollar needed to pay 0. 50 so rightfully so they are saying that youre counting is wrong. Gerri is this a difference . In terms of the interpretation b basically this is the of lovehate relationship they cannot get the product to market without a distributor they say it is just like a record. You make it and we sell its. But it is licensing when you download they only get it for the certain amount of time. Tt is not the way the Company Looks at it. With a more precise contract to link wage if at the time. They build not know that. Gerri there is a lot of contract language so why does this happen over and over and over . Theyre not winning when they negotiate the agreements. Exactly. They are being exploited. Kelly clarkson now we know her name but she did not know the contracts. Even her lawyers are not sophisticated the enough this is the company that supports American Idol so to say that all of these tists are basicly getting shafted. But the company gets the revenue that comes from at. Gerri so that was where i was going. So the background is complicated in to i dont know but do the hardest typically gets the shaft . Yes. Said they are coming forward to say we are smart enough to realize you drted the contract a certain way sales verses licensees deducting royalties. The point i want to make of was not the effective consumer it is millionaires versus billionaires. [laughter] but it is the ageold problem. If you think back to the of petrol lug this is how long people fighting for royalty is. Gerri we have all streaming of music how does that impa that . And buses in this sense not the consumer you still pay for that licensing but itill come down to who gets the money from all of the sites and it should be 50 50 with the artist and distributor. Contract between t the internet or sony it is really at the artist. Gerri why not 50 percent . Every betty tries to make the money that they can make. They do advertising. They know how to make money. We dont have the little guy working in the street they are millionaire artist. But they hire other people to do other things to bring up other artists. Just be fair. Is a Contract Drafting issue. That is not exciting i know. [laughter] it is a real show about the law. [laughter] gerri great job. Period underwood. Carry under rare. [laughter] if American Idol is of launchpad with the top five check this out. Number five is out albums sold over 1 million. Number four thanks to his heavy torrey and. Number three is the type. The debuts onof homes sold more than 40 million copies. But lambert cashews soon to bring live jobs. Number to the original American Idol and the number one top burner 2013 there she is. Pulling in 301 billion to endorsement deals. Over the past five years. Stl too, might 0. 2 and how do you do that to protect yourself a and your money . St with us. For my frzero heartburn. Becaust wohoo is the number one] doctor recomndedtc frequent heartburn medicine for 8 straight years. One pill each morning. 24 hours. Zero heartburn. Rri this diems and schemes and frauds and the irs is whatou are submitted to way you release your errors submit your tax return. Here with the dirty dishes and one bastardy doesnt withhe natiol Taxpayers Union executive vice president. There are always seems to be aware of but said new ones and old ones. What is the most nefarious outtthere right now . Identity theft because what they ll do is read as though last four digits of your Social Security number that is not all that hard to get. Maybe you give them the full Social Security number with more details suddenly eighth fraudulent claim has been filed and y have headaches because the Identity Theft un is strong but they take too long to resolve the cases. And if you have this problem the best piece of advice i to go to use Taxpayer Advocate service they have to resolve within 90 days irs could take up out of one year. Gerri 90 days sounds like a lot ofor that case it is short. The irs has paid 4 billion in fraudulent refunds that they will kill somebody else your money. That is scary. Another big problem out ere is phishing. Irs never initiates contact by email. If you get something that says it is from the irs do not even open it because you open yourself to trouble. Gerri what about fraudulent refund scams . People ask for your social for the last digits but are there other ways . There are ways where you are promisedyou will get a bigger refund and you are entitled. Once you buy into the scheme on like anywhere else where you are out of your money, it inflates the refund the irs finds out not only is the preparer responsible with due dilince but so are you to pay the extra tax but penalties. Remember if it sounds too good to be true it probably is. Gerri in reality once they find an agent preparing tax returns doing badthings they will not just get one client but all of them. So if somebody is preparing tax filings for everybody they are aggressive dont sign up. Could be a problem down the road and you willet in trouble. Not just the person making the false filings. With the arguments come and go this is what tax protesters use to get out of paying taxes but many of them are sold as information kits such as the 16th amendment was never ratified so you dont have to pay taxes or leaf while this form to declare yourself as a sovereign entity or even woe file your own than 99 to unders id, of thes are ing for if you have bee how your tollars are protest through the Citizen Group if not mind then go to another organization but dont make those mistakes. Gerri d iirs is not kidding. Some people were coming to their doors if they dont pay the bills. Up they can take anything they want. Great to see you. Have a great weekend. Real threat would dash be right back our Retirement Plans under assault by greedy politicians . Gerri was finally the idea of the Obama Administration is trying to do discourage, and not encourage Retirement Savings the president is seriously proposing a the government cap tax benefits as high yen,. When is the last time you heard anybody say you are saving too much money for retirement . Retirement policy is the last place we need to hear the rhetoric of the economy quality here in new york 200,000 in annual income is middleclass not 1 . It is not like the president is proposing to use the savings to help those or understating but just go to uncle sam to bankroll a project. The idea stinks. Th. We will see you next week. Neil so much for new years resolutions becse you may try to stick to that diet by washington gave up trying. Welcome, everybody. I am neil cavuto. Get ready to get back to continue more spending because it never stopped. Ending the week with the budget that is wea. A. M. Did goodies for all including to keep democrats happy in benefits to keep republicans happy but if you are among those who worry about
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