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Episode #37

Will the Fiscal Cliff Deal Spur Companies to Spend and Hire?

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Friday, January 04, 2013

joe biden, fiscal cliff, mitch mcconnell Vice President Joe Biden urged Senate Democrats to support a tentative tax agreement with Republicans in a closed-door meeting. (Drew Angerer/Getty)

For years, we've heard that the markets hate uncertainty and that businesses will stay on the sidelines and hold on to profits when it's unclear how policymakers will act. 

Well, this week, we got some certainty. Washington reached a deal on taxes: raising rates for the wealthy and largely keeping them unchanged for the middle class, with the exception of the payroll tax. 

This week on WNYC's Money Talking, regular contributors Rana Foroohar of Time magazine and Joe Nocera of the New York Times weigh on whether the fiscal cliff deal will spur companies to start spending money and hiring again. 

Plus, what freshman lawmakers in the 113th Congress are saying about how to deal with future debt. 

Hosted by:

Jeff Greenfield

Produced by:

Daniel P. Tucker

Editors:

Charlie Herman

Contributors:

Rana Foroohar and Joe Nocera

Comments [1]

donald raymar from Lincoln park, nj

I find the show fascinating and wonder if this country will ever even be fiscally sound, which if that does not happen, will create enormous problems with devastating effects. I have two ideas that should appeal to Liberals,Democrats, Conservatives and Republicans/

First. to end the unemployment problem, allow for the next 4 years. any employer to hire new employees. and allow that employer to take as a tax credit against income, the full salary of the new employee. This would apply to any business. The only caveat would be that the employer cannot fire someone just to hire a new employee and that new employee cannot be a relative. The unemployment rate should drop, employees would have buying power, taxes would be paid to Federal, State and Local governments, and people would be able to pay their mortgages. Since companies would pay less in taxes as a result of the credit, conservative should be happy since, initially the government would have less money.

Second/ The immigration problem could he handled simply by giving each undocumented worker and a work card, bio metric, so it is impossible to duplicate, and allow that person to work legitimately. A worker could not work unless he had this card. An employer could not hire a worker unless this card is presented at the time of work. All cards would be registered in a national database (I understand there are privacy issues) and the employer would have a laptop to check the registration. The worker would pay all applicable tax deductions and the employer would do the same. The penalty would be if the worker does not have the card, he is arrested and deported. If the employer hires a worker without the card, they are fined $10,000 per day. This issuance of the care is only the first part of the path to citizenship and the worker does not "pass" present applicants. The issuance of the card allows the children to stay in the U.S./ apply for military duty, and apply for scholarship. What the other rules and conditions for citizenship (fines, learning English, etc.)can be debated latter. However, by using this method two things are accomplished - 1. taxes immediately flow into the economy. 2. the stigma of criminalization is removed and this country can move forward, recognizing reality.

Jan. 05 2013 06:05 PM

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