12/7/2010 FOX Business Interview with Drew Greenblatt
Tuesday, December 07, 2010
Liberals on the Attack | America's Nightly Scoreboard
With: David Asman, Alan Colmes, Monica Crowley, Lis Wiehl, Sara Carter
Special Guests | Jim Jordan, Drew Greenblatt, Dolly Lenz, Genie Buss
DAVID ASMAN, FOX BUSINESS HOST: Tonight's "Scoreboard" - -
It really is time for the people of America to take up pitch forks.
ASMAN: Democrats in revolt over the president's tax deal. The fixer Vice President Biden is sent to Capitol Hill to sell the deal. But is this pivot to the center on taxes the real thing or a short-term ploy to get Republicans to vote for bigger government? We'll score it with young gun, Congressman Jim Jordan, and businessmen with real skin in the game.
Kicking off tonight, the president has a war on his hands. And he fired the first shot. It was not just the announcement he negotiated around the convention of Democrats to make a deal with the Republicans, it was the direct shot he took at Nancy Pelosi, and the pointless vote she scheduled last week to raise taxes.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: And I am not willing to let working families across this country become collateral damage for political warfare here in Washington. The American people did not send us here to wage symbolic battles or wage symbolic victories.
ASMAN: That was for you, Madam Speaker. And today, we heard that the tax deal was worked out with Republicans without Democrats even being in the room. That must have added a few degrees to Nancy Pelosi's rage as she fired off a press release condemning the president's compromise. She is even tweaking about it right now.
But those who appear most stunned by the president's deal are his activist friends, the left wing ideologues who believe that most Americans love big government just as much as they do.
Many of them feel depressed and betrayed, as you can see in this communique issued by MoveOn.org today. Quote, "Watching the tax-cut negotiations is like watching a car crash in slow motion. The president's commitment to bipartisanship should not mean leaving principles behind." Of course, those principles were left behind by the American people in the last election.
The idea that Americans are on board for higher taxes to fund bigger government is nonsense. That train has left the station. And the MoveOn folks have the illusion that Americans are still on board, but they are clearly not. You can't blame the president for jumping off that train, a train that is heading off the cliff.
So, for the moment, he signals he is putting jobs ahead of class warfare and snubbing the Democrats to grow the economy with Republicans.
Now, a lot of Republicans are a giddy about Democrats turning on each other, but we suspect most Americans do not care about these Beltway games, as long as their taxes don't go up, government does not get any bigger and the job market improves.
That is America's bottom line. And joining us now from inside the Beltway, Republican Congressman Jim Jordan, from Ohio; and one of our small business all stars, Drew Greenblatt, president of Marlin Steel Wire. He joins us from Baltimore, Maryland. Guys, good to have you in. Congressman, first to you.
REP. JIM JORDAN, (R), OHIO: Good to be with you.
ASMAN: What do think of the compromise? Are you happy with it?
JORDAN: It is great, David, that the rates will stay flat. They're not going to go up. That's critical. But I am a little troubled by the new spending. The unemployment compensation, plus these refundable tax credits is about $90 million in new spending. And I think we -- we ought to come back and --
ASMAN: Hold on. Let me stop you, Congressman. I have heard wide- ranging figures -- I've never heard something as small as $90. I've heard $300 billion over two years. I've heard some figures up to $900 billion when you count in the lost revenue from the tax cuts. Of course, those figures are all speculative. I don't believe that.
JORDAN: Yes. I don't believe that either.
ASMAN: But $300 billion over two years is a figure that I keep hearing. JORDAN: We go $90 billion for this year because to pay for the unemployment compensation for 13 more months is $50.
ASMAN: OK.
JORDAN: And then the $40 billion in the refundable tax credits that they give. So $90 billion in new spending this next fiscal year. I'm troubled by that because it is not offset with spending cuts. But keeping the rates low which provides of the certainty we need in our economy to grow jobs, that is obviously a positive thing.
The other thing, when you boil this all down -- and this why I think it's important we look at this closely -- I mean, it is great to see the left fighting among each other. It's kind of humorous and kind of fun to watch, because they believe in government.
But when you boil it down, we are maintaining current rates, the estate is going up from what it is right now. And they're spending $90 billion in more spending.
So I think you have to look at the whole package and ask the fundamental question, is this going to create jobs and is it going to help American families and small business and be conducive to job creation and growing our economy. That's the key. But the fact that they gave on the taxes and kept the rates low is a positive.
ASMAN: Let's ask one of the job creators. Drew, can you breathe easier now that you know what the future holds in store, or at least we assume we do, unless Democrats derail the deal?
DREW GREENBLATT, OWNER, MARLIN STEEL WIRE PRODUCTION: It is good that we have this plan ironed out and I am hoping it locks down. I think two years is too short but it is better than nothing. I think all of us are breathing a sigh of relief because we thought we were getting a big tax increase in just a couple days, and thankfully that will not happen.
ASMAN: Does it make it any more likely since you know your tax rates aren't going up, does it make it any more likely that you might hire somebody that you would not have if you saw your tax rates go up?
GREENBLATT: I think things like the 100 percent expensing is a fabulous thing because that will create a lot of purchases by companies to go out and invest in their plant to make sure they are more efficient and more competitive. It is ruthless out there, the competition, with foreign countries. We have to be on our game and take our gloves off. So I --
ASMAN: I just want to alert our audience, for those who don't know, it is a write-off of 100 percent of investments and it is backdate to September 2010, Drew. If you made any purchases as of September, you may include those.
GREENBLATT: This is very good for our economy, because many businesses will go buy things that they were probably hesitating on. There will be more competitive, more efficient, probably hiring more people to handle that. Things like the payroll tax cut -- I wrote an editorial in the "The Baltimore Sun" a year and a half ago. I think President Obama got this half right. It was good to cut the payroll tax for the employees. However, he didn't get the other half right.
ASMAN: Right, the employers.
GREENBLATT: He didn't cut payroll taxes for the job creators. Exactly. Those job creators need relief so they hire more people. That is not a good. And I think we should -- hopefully, when the new Congress is sworn in, they will cut the payroll tax for businesses so we go out there and hire new people.
ASMAN: We'll see. Hold on. Let me ask Congressman, because their focus is on spending, spending, spending, spending. That is why they think, if you give people a little extra change in their pocket, they will go out and spend it and that will help the economy. but what about the producers? When you become the majority in the House of Representatives, might you likely to be entering something in that gives a tax break to employers as well as employees?
JORDAN: Great point. Great question. Democrats always focus on the demand side. You're right. We should properly focus on the supply side. In fact, I have introduced a bill which does what Drew described. It cuts payroll taxes for employees and employers so we get it totally right, as Drew pointed out. Yes, that is something I would strongly be in favor of. I believe our leadership will move in that direction.
ASMAN: By the way, Congressman, if the economy improves -- and there are certain indications it is improving in certain ways, as bad as the unemployment figure is right now, does that make the president's case, in two years, that now is the time to raise tax rates, or does it increase the case of Republicans who say, you have to leave taxes or even lower them and make the tax code less complicated?
JORDAN: No. I think it is the later. Look, if, in fact, the economy improves, which we all want it to do -- and you can point back to the fact that we did keep the tax rates low. We did not raise the dividend tax rate. We did not raise the capital gains tax.
So you can point back to, yes, let's keep taxes low to continue economic growth. It worked in the past and it will work in the future.
ASMAN: If the economy -- there is a flip side to this. If the economy deteriorates and we have rising unemployment -- and some people say we may over the next couple of quarters, what does that do? Does that make Democrats -- does that strengthen the case for Nancy Pelosi saying, you guys are going down the wrong road?
JORDAN: Look, it goes back to Drew's point. It would have been much better if we kept tax rates low permanently, extended them permanently. But if this is all the deal is -- and you can point to that it actually promotes economic growth, we will have a positive story to tell if that happens.
ASMAN: And, again, we are spending a lot more money.
ASMAN: Go ahead, Drew. I heard you wanted to chime in.
GREENBLATT: In two years, it will be wonderful to have a debate, should we raise taxes or should we lower taxes? That is a very good debate because look what just happened, 65 new congressmen coming to Washington to help small businesses grow and thrive and hire people. And this is wonderful.
And in two years, if this debate will happen all over again, it will be -- you'll get even 65 more soldiers coming in to Washington to help the cause.
ASMAN: Congressman, do you think in 2012 this will be the referendum, of sorts, on taxes?
JORDAN: Yes. I mean, it's -- I think Drew is probably right. This is the old Yogi Berra line, "This is deja vu all over again." It may in fact be that case. But I will tell you, the left looks forward to having this debate as well.
Look at -- again, back to where you started, David, look to where MoveOn.org -- what they said today. They called it a disaster. So the left kind of wants this same debate to happen in two years. I want the debate as well. So I think each side has their point. We'll have this debate in two years, and hopefully we will win again.
ASMAN: Congressman Jim Jordan, Drew Greenblatt, great to see you, guys. Thanks very much.
