to the fire to say if they don't do that then speaker you may not to the revenue. >> exactly we have probably take it more of a step back with the rhetoric. we have democrats with senior places like senator dick durbin who took entitlement reform off the table of our social security or a touchy medicare or medicaid and republican said we put tax revenue on the table only with entitlements and spending. neil: they do.

harder to go back to extend the tax cuts some there is a 50/50 chance but not until christmas eve. >> gourde years even. >> to extend the middle class tax cuts than wait until next year basically wait until next year they do give up the bargaining power. do we think january will see that tax cut to the wealthy? >> republicans have leverage. the debt ceiling debate, they need their leverage, push back, restate

the position it is the spending issue. even if there is zedillo there will be kick the can down the road. i cannot see that to happening before the end of the year. long-term fiscal situation this determined by spending. >> what comes then automatically goes out the door to pay for the entitlements. 61% say we have to cut spending. the american people get it. we do it at home. of the the government does not get it. you make $1 million but spending cuts would that go through? >> my concern is to concede

the point* the short term in a recession revenues will go back up. if we do nothing we will be back to the long-term average without keeping these. we should talk about the long-term budget deficit this driven by entitlements spending. medicare, as a security and defense all should be on the table. we can do this without hurting the poor and is not a sacrifice those at the bottom. you need to get medical costs under control. unfortunately i think the

president's medical act will make costs higher so we have to fix the system to get cost under control. >> should obamacare be on the table? >> it is part of the fiscal cliff. the obamacare tax increases kick in next year. whether dividends, investment income why do we want to tax people investing? that is what we want. it is the wrong time to raise taxes on capital gains because that grows the economy. so some of the worst will come about because of obamacare. >> just like the top line revenues with the medical

device it is making money right now. >> there is a myth it will come out of executive bonuses. the health care industry will pass the increase and run up the health care cost that is driving up the budget problem. >> the bill coming across the table with the bill for hurricane sandy to go to the victims yet surprisingly are not, $23 million for their tree planting, of $4 million for new cars for the fbi. $2 million for a roof at the smithsonian. do they think we're stupid? >> i was working in the senate to during katrina. it is a wasteful process.

we gave the localities a blank check. that is proposed here. but so much of the $60 billion is not spending on individual family is but on another government program. there is literally billions for vehicle replacement for government officials. the agency should do the assessment of their fleet and said it just ask for money. >> we just cut about -- talk about cutting defense then we have 40 million appropriated to the military defense. it makes no sense but they don't get to blow the money. >> i agree. tucci and all rahm emanuel they is a crisis that was a

payback to their constituency. there using but cover of a hurricane relief for various parts of government. by contrast of katrina the money was everywhere not just the gulf of mexico. this request is so full we will never help individual families that impacted it is incredible they use the crisis as an excuse to expand government. neil: it is typical. thank you for being here. [laughter] is a fact gain confidence ever wear small business confidence plunging thanks to the election according to the national federation of

independent businesses. owners fear the worst with more on the president's policies we have carol ross. i had the pleasure of big to during the chief economist to said he would think confidence is down because of hurricane sandy but it is because of the election and small businesses. their job creator. >> absolutely. they're actually not doing anything they are not sure what to expect the longer with the fiscal cliff nonsense and then we have obamacare everybody is very concerned and the choice is do nothing.

said the small-business community sits and waits. that is not what we want for our country. tracy: resaw the cap that six -- capex spending come to a halt. everybody is in no holding pattern? >> absolutely remember as small business owner the hiring and the individual person is such a bigger impact. they take those decisions because they don't know what is coming up ahead. on the big business side what is overlooked how many small-business owners are affected.

the rich is the small business owners to our tax through the past three entities. >> when you file the schedule c it is part of the individual tax return. then you bring in some business is not a lot of money at the end of the day. >> it is arbitrary. what is affected is a million. those they say are rich over 26 percent are small business owners. i understand how taxing those business owners will help to spur the economy. >> we know that they down

and have a powerful lobbyist but they do have you. there is one tax that we agree should go back up? >> yes. the payroll tax cut that has to come off the table that takes money away from social security. i don't know why they put so security and with the rest of the fund. i know why. but they shouldn't they pay into the 401(k) security is such a mess but i will tell you if you take that to and obamacare that is almost 1% of gdp we cannot afford to have much more. tracy: is drowning as it is. thank you very much.

tracy: if you are fired up right to us an e-mail. >> silence of destruction of private property after the vote to in michigan. what is the media silent? the federal government does not think we have a spending problem because millions more will be spent on a new wind project. what is a difference between a $10 a bottle of wine and 10,000? we found a surprising answer. next.

tracy: spending taxpayers money is only a federal problem. check this out. this atlanta mayor, approving the city council to receive -- wait for it -- 50% pay increase starting in 2014. do they not have tv in atlanta? you heard it right. 50%. the council council members voted to raise their own pay earlier this month. these employers employees are also demanding that pays well. they are wanting to raise the income for these city employees. really? fiscal cliff? deficit? that? anyone? what steps can you take to lower your tax burden mr.?

we have dominant from diversified financiaa consultants. you talk with them leaders. what do they say? >> they are working diligently to get this compromise. if you look at the economic and tax issues facing us in 2013, it's going to go either bad or really bad. it is not going to be a compromise. there is not a good scenario coming out of the picture. even if they compromise, we are still going to be facing higher taxes and substantial cuts in entitlements and other programs. >> at the end of the day, that hurts gdp in the country? >> the projections by the cbo, if we go to the fiscal cliff and all thesethings happen -- it's going to reduce gdp by 4%. we go, plus 22 minus two -- that is the worst-case scenario.

one thing that is unwinnable in washington. we don't what they are going to do. 2% cut in gdp. >> 's. tracy: even if there is nobody changed, you are still going to feel the ancillary. all of that stuff -- >> you will feel it. when you get the first paycheck when it is $20 less per $100 less, your brain says i have to stop spending. i have to slow it down. i have to pay off debt. all good things in the long run. but in the first and second order of next year, borderline recession. tracy: people will go under their be again. >> that is what happens. tracy: what n we do before the

end of year? what are you telling your clients? >> the ideas are how i capture losses. if we have the opportunity to shift income into next year, when do i book a iece of business? one-way make that income show up in theollowing tax year? to further attacks. paid omorrow. why pay today when you can pay tomorrow. these conversations are literally 180 degrees different. you want capital gains today. you have until december 31. do not wait until the last minute. a 15% capital gains rate today. we don't know what it's going to be tomorrow. tracy: we are talking about short-term selling. we are not talking about things -- a great point. we always worry about taxes. n't make any investment

decision because of taxes. you want to separate the two. you are going to hold it for the next 20 years, we were the one. tracy: who knows what's going to happen. what about the real estate market? >> economy is to be slower in the first quarter second quarter of next year. but we have some game changers. energy, real estate, really has bottomed out. could add 3 million jobs over the next three or five or 10 years. the last one, there are a lot of people and companies holding a huge amount of cash back. $1 trillion being held back. if we solve this problem, that could cast it into the economy. a boost in the second corner. tracy: thank you for slogging through. founder and president. thank you. switching gears, later we will tellou about the best wine to give at the holidays.

in the meantime, we want to know what you think. what is your favorite and one viewport and i? red or white? logons gerriwillis.com and vote on the right-hand side of the screen. i will vote during the break. we will share the results at the end of tonight's show. coming up, d-day for obamacare exchanges. states across the country are telling the white house thank you, but no thank you. the federal government's latest green project. we will have the details coming up

tracy: governors across the country refusing to comply with

tracy: obamacare. decision day states will let washington know if they will

knowf they will set up their own health care exchanges or what the federal government will do in regards to doing it for them. herewith the latest, peter barnes, the fox business senior correspondent. >> more than that. we have the full screen. 18 plus washington dc said they will create they're around. 26 states will let the federa government run it for them. six states chose a partnership as a test run to see who works. one the most important pieces of obamacare the obama administration projected 23 million would get health care insurance

through the exchange by 2016. tracy: more than half. chris christie said no from the beginning. south carolina, louisiana, wiscons in said no. we will take matters into our own hands? >> governors like chris christie have big concerns how they may operate and the fed did not give all of the details on what they want them to be and standard some governors held off for collison. >> part of the implementation is hhs wanted to wait until after the election and not wanting to politicize the.

but that eight away at the time it is available to implement. >> one of the things under obamacare is it can let the fed come in and set up then and set this thing up. decide to take it over some governors are not doing it because they oppose obamacare but others are concerned it is too risky themhat the federal government ago first. tracy: you have a personal experience? >> i took a test drive. we had romneycare in massachusetts that set this up to be like the travelocity. it is fascinating. you put it in your age and

if you smoke and you get a menu of choices. of gold plan, as silver plan , of bronze plant, high deductible and low deductible and you get a price for that. massachusetts appears to be working. >> is there concern how the doctors are paid? >> the whole idea, a major part of obamacare is not to cover those a don't have insurance now control health care inflation. when a the outcomes is to empower the consumer rainout of third-party, the company

provides the health insurance plan and we pick appeal options. acutempower the consumer they will be smarter about shopping like a flat screen tv and of the cost goes down that should mean lower payments. tracy: but it could backfire because the doctors are not they aren't getting paid enoug paid enough. you will be all over this. that will affect the doctors down the road for kraft to the break we will go inside no wine vault. what does the 10,000 bottle of wine the plig? do people drink it? but i will join a prominent wine merchant for exclusive look.

tracy: chris miss it is around the corner and chances are someone would love a great bottle of wine. it makes a great gift if you can get a decent bottle for under $20 but we asked a prominent wine merchant who invited me into his store in rockeller center. you may be surprised. holiday season i don't know what to bring. can i bring a decent bottle? >> i hold the bottle that is very decent it is from spain

and 1295 days dollars in defense sense per bottle. >> i don't know the menu. >> that does not matter for dinner. most people think they will have it right then and there but most people have their own wine ready. it is more as a gift. you put so much time into the wind you pick. >> it is always safe to break a sparkled wind. tracy: i am in crge of matching. piano in a war? >> it is the easiest. smoothes and the perfect read.

>> my wife and i drink winn from argentina. every night white wine. tracy: started 1947? 1970 were on the map going from a really expensive bottle. >> i have the opportunity to taste the wine made clear year lincoln was shot. 1865. i decided it only had the opportunity once in my life. i went for it. i held the world record platt -- price of $520. it would be around $50,000 a bottle today. tracy: that was a lot of

money back en. >> 105 years old at the time. tracy: some of the most expensive models you cuddle that like good newborn child >> this is so expensive and prious. 1945. i did not know we had this. $9,100. just like real estate they do not make it any more. tracy: 1945? how long can you hold this? could i drink it now? >> of course. tracy: i would love to. >> you open to the abraham lincoln bottle. [laughter] >> this was so vintage and

powerful it last another 100 years. tracy: if i cannot get to manhattan how do i get it? >> online. tracy: amazing. he is delaying really well. head won online sale the day before as $60,000. wine lovers. as we wrap up the year but what is the biggest thing to keep your eye on? looking the other way at a shocking violence that the union rally. lou dobbs is here.

tracy: spend a. spend. spend part of the model of the administration trillion dollar deficits the energy department announces $160 million plan to build more wind farms was bring in a senior fellow from the manhattan institute it is most laughable britain said the offshore wind farm is not produce amuch as three thought. it is not even a good idea we still spend money. >> it is agreed example to show the wind industry is the most favored in america wis subsidies and mandates hang getting subsidies under

the national wildlife flawed no bearing more money at the offshore sector that would give expensive. tracy: the floating when the bill is out on the water somewhere slowly bringing power back? >> the important thing to realize what is the cost of electricity that may be generated offshore? look at the data it is clear. the cost of offshore wind is 2.5 times from the onshore wind turbine and five times as natural-gas. it will be extremely expensive if it is built. tracy: more money and not as much energy as we thought.

what is the rationale? [laughter] part of the obama administration push all of the above strategy does not matter if it works. we should have a diverse portfolio for those that are viable. the view is not winter solar but in the shale revolution the subsidies are 10 times greater. why do we neglect oil and gas?

full-court press to get extended and and now the subsidize more than 20 years and then they could produce on their own without some cities thank you for being here. good times on a friday night. - big week for organized labor a stunning defeat in michigan and the right to work a lot that part was look covered but was largely ignored was this. union members desperately a

clinging to power violence violence, assault and destruction of private property. will anybody be charged? why are some looking the other way? lou dobbs joins us tonight. this infuriates you? >> at the same time we should get used to the fact that daschle liberal media will make choices that are inexplicable other than their own by as. what we watched it was conservative comedian being punched and he shows that he could take a pretty good punch but cbs, nbc left this part of the story out and so it did abc referred to the violence without specificity. they also left out

democratic state representative got a little carried away and started to talk about the undue 100 years of labor progress quote-unquote thereill be blood record jimmy hoffa said there will be a civil war. this is the language that would is used time and time again but completely ignored by cbs, abc, and nbc it is truly remarkable. tracy: the president backs them? he was a jury is lease finance in wisconsin and now front and center. the president considered to

be part of the problem to talk about right to work is not economics politics. he knows better than that. he knows we have seen in right to work states improvinemployment while the forest union states where they have to pay dues, unemployment is higher. that has escaped the attention of liberal news outlets. tracy: you will lk about this? >> absolutely. with the attorney general of south carolina. and also in the middle east dr. walid phares is who is

the fox middle east news analyst and expert at the top of the hour. tracy: don't change the channel. tonight 7:00 and 10:00 p.m. eastern. 2012 is wrapping up. why aren't the market's reacting to the fiscal cliff next.

tracy: what is up with the market? with the threat of another recession you think the

market would be in the toilet. we have the chief investment strategist with us. all the indices up over 4%? >> the market is realizing in january 1st is a false deadline not lake yankee's. we know that will not happen. but it seems like we will get a solution or a range from the grand bargain or kicking the can down the road. i think this this gold cliff is priced appropriately. tracy: before you said if we

take a step back the companies have never been stronger. >> you grew up in the business with stocks with this terrible sentiment is great for stocks technically speaking the s&p looks good earnings estimates so by editor measures stocks are great. tracy: i worried about the earnings season? >> and seems 1/3 quarter will be the trough. not gain busters but we thought four 5% but then next year could be double

digits. >> what is that? they cannot fall further? [laughter] >> i stay away from the money-center banks with balance sheet problems. tracy: bank of new york mellon. >> is on duralast. >> also allstate. tracy: illinois tool works? >> good global infrastructure play global impressed reassure is in the news and even today about to hurricane sandy relief. that will help others. tracy: talk about apple. still on the list? >> don't catch a falling

knife. it is still on the list. tracy: you will talk about it again. fighting the traffic today. fighting the traffic today. what is the que [ male announcer ] how do you trarade? with scottrader streaming quotes, any way you want. fully customize it for your trading process -- from thought to ade, on every screen. and all in real time. which makes it just like having your own trading floor, right at your fingertips. [ rodger ] at scottrade, seven dollar trades are just the start. try our easy-to-use scottrader streaming quotes. it's another reason more investors are saying... [ all ] i'm with scottrade. television commercials.you 0

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