Ken Langone: 'Raise My Taxes' to Avoid Cliff, But Cutting Spending Would Be Better

Wednesday, 19 Dec 2012 08:54 AM

  Comment  |
   Contact Us  |
|  A   A  
  Copy Shortlink
Policymakers can raise taxes on the wealthy to avoid the fiscal cliff, but true fiscal health will come from meaningful entitlement reform, said noted investor and Home Depot co-founder Ken Langone.

The White House and congressional Republicans have made progress in talks to avoid the fiscal cliff, a combination of tax hikes and deep government spending cuts due to take effect at the same time at the end of this year.

Failure to push through fiscal reforms could result in an estimated $600 billion being siphoned out of the economy next year alone, throwing the country into a recession in the process.

Editor's Note: Use This Single Loophole to Pay Zero Taxes in 2013

Both sides appear to be making progress when it comes to tax hikes on the wealthy.

Democrats, who once wanted to raise taxes on incomes over $250,000 a year are now proposing raising that minimum threshold of eligibility to $400,000 a year.

Republicans, who once opposed any and all tax hikes, now reportedly say they’ll accept tax hikes on incomes of over $1 million a year to help drum up revenue.

That’s all well and good if it brings about compromise, Langone said, but entitlement reform must follow suit.

“People making $1 million a year are not going to do anything different if they pay more taxes,” Langone told CNBC, adding that “you get nothing, effectively nothing, out of going after the heavyweights.”

Spending needs more attention.

“We now have to come to the issue of when we deal with our structural problem, and we have a very serious structural problem,” Langone said.

“We need entitlement reform — take away Social Security from guys like me. Raise my taxes. Nothing will change in my life.”

“I happen to think the real issue is entitlements,” Langone said.

“We need to get the issue of taxes off the table.”

Wall Street analysts say they are pleased with the level of compromise even though there is no deal yet.

“There’s an overriding belief now that we will get a deal done in 2012,” said Peter Boockvar, an equity strategist at Miller Tabak, according to CNNMoney.

Others echoed those sentiments, fueling hopes that a deal could become reality this year.

“There is certain optimism that it could potentially be done before the end of the year and that would be a very positive sign to the market,” Philip Tasho, chief investment officer at Alexandria, Va.-based Tamro Capital Partners, which manages about $1.8 billion, told Bloomberg.

“Once the solutions are in the rearview mirror in terms of fiscal policy, we will simply look forward. It’s a blip in the long-term trend.”

Editor's Note: Use This Single Loophole to Pay Zero Taxes in 2013

© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact Us  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Retype Email:
Zip Code:
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Peter Orszag: Burwell's Big Chance to Control Healthcare Costs

Thursday, 17 Apr 2014 12:24 PM

In the past several months, healthcare costs outside Medicare may have accelerated, even as Medicare spending growth rem . . .

Morici: White House Strategy: Fabricating Fear and Injustice

Thursday, 17 Apr 2014 12:06 PM

Facing mid-term elections and burdened with persistently high unemployment, President Obama is playing the race, gender  . . .

Obama Budget Plan Would Boost Tax Revenues

Thursday, 17 Apr 2014 11:11 AM

President Barack Obama's fiscal 2015 budget request would boost U.S. tax revenues by nearly $1.4 trillion over 10 years  . . .

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved