lol. good afternoon and welcome the prime interest i'm perry and boring here in washington d.c. and here's the stories that we're tracking today. the marketplace fairness act passed the senate yesterday and it's headed for pushback in the republican controlled house the bill would require amazon e-bay and other online retailers to collect taxes on all sales and send the proceeds to your state we'll have our own debate on this bill in just a bit also litigation a little bank of america has settled yet another lawsuit this one is what financial insurance giant m.b.i.a. which owes merrill lynch three billion dollars for insurance claims on bad mortgages that countrywide wrote but bank of america is now owns both country why

they want to settle the brother against brother sued bank of america is buying stock in m.b.i.a. and giving them one point seven billion dollars they're just one big happy family. give us more money and that's the message that as these the chairwoman delivered to the house appropriations committee today we talk a lot about mary jo white here and today is going to be no different we have a special profile of her later in the show she's been up to a lot recently taking on jobs act implementation in mind in money market reforms so it stands to reason that as the she will need a bigger budget right all right let's get to what's in your prime interest.

last friday the bureau of labor. so to states the release of monthly unemployment numbers which beat expectations one hundred sixty five thousand jobs were added to the economy and the unemployment rate ticked down from seven point six to seven point five percent but according to a new york times c.b.s. news poll about half of americans believe that the sequester sequester async cuts would hurt the economy or earlier i got them employed from political commentator fan sachs and from the executive director at the iran institute you're on drugs here's what they had to say. it's merely what we're seeing is is is with the sequester cuts and we're just in general the austerity regime that's been implemented in europe and here in the united states is going to see money being taken out of the hands of working people and out of the middle class and i think if you look at the way here commies function they don't function when wealthy people have tons of money they are stocking shelves with goods they function when people

have money to spend in their pockets and go out and spend that well you're either how do you think the question isn't hurting the jobs market why it's not what the jobs market is the economic policies of the last fifteen years we should disaster increased regulation increased government spending increased government borrowing increased taxation that's what's just that's what's hurting the job market what's destroying the u.s. economy we would slowing growth every job lost in the public sector is more money in the private sector every job lost in the public sector is one person less doing unproductive activity and more money in the hands of productive people building stuff creating stuff and moving this economy forward so sequestration is helping the economy the problem with it is it's much too small much too little and it's not affecting the real problem which is overregulation over taxation and and a government that's way too big every left i did ask wall street about

overregulation as west texas about overregulation i jack says there's a lower level than they've been in the last few days to moderate. in the united states wall street is dramatic you regulated it every bank on wall street is regulated by five different regulatory agencies that was true in two thousand and so what you see today and what you saw during the financial crisis is a consequence is over regulation of taking the time that now i'm glad i have another clinical incident and that i would have another point i want to bring out that sam had he has argued before that the government nurtures our middle class by distributing taxes to fund programs that help the middle class through medicare food stamps unemployment and sheridan's why does the government need to provide these programs sam why can't the private sector do this because it doesn't do it i think that's what it comes down to in crowded out because the government has taken over such a big share of these industries look i mean go democratic governments didn't arise out of nowhere they arose out of the fact that we've been living for you know

whether it's medieval times or whatever in which wealth was accumulated at the very very top and everybody kind of just got trickled down a little bit of money here and there and if you privileges they didn't have any rights we came gov we have democratic government we have democratic control of our economy to make sure that wealth gets distributed more even evenly. so that the wealth imbalance between the very rich in the very poor is good i think that's what's good for economies if you look right before every previous crash and even the crash in two thousand and seven two thousand and eight they were all preceded by massive wealth inequality where there was nine hundred twenty nine or two thousand and seventy we're still seeing that wealth inequality here on whereas whereas the private sector here. private sector is being crowded out there's no private sector in america today government is every way government has its fingers on every aspect of our economy even those segments that were relatively free ten fifteen years ago today being regulated heavily through antitrust and through other

means that look at technology look at how google today is building massive operations in washington d.c. said can lobby effectively because otherwise government is going to destroy them just like they did microsoft so you know that it is no private sector today and to compete to blame anything on the private sector today is ludicrous when government is so involved in every aspect of economy and really this this what distribution to compare capitalism and to compare the economy the last two hundred years to feudalism is just insanity you know yes in feudalism it was sort of sin it was to kratz and it was to question came rich by exploiting the so it's that is not capitalism in spite of it mocks marx was wrong capitalism is what raises the poor it's no accident that over the last two hundred years the poor in our society have risen up they've risen up into you know some of them into middle class but even the the people who are poor who sit on his the consequences of democratic government realize it's not here is here at is not a consequence of government debt as

a consequence sort of points of this station of capitalism of wealth creation of building products of creating stuff which government does its best to see into feel with that close and current screw it and hero his arm and over his life it was ill the critics on syria to bite on him unemployment insurance the wagner act which protected the union organizing the goods is how the legislation through all of these corresponded with the growth of the middle class that's all a coincidence for it it's just not true historically that wagner act reads used to quality and standard of living of americans by raising the cost of living when you force employers to overpay their employees what you do it. everybody to pay more for their products and as a consequence everybody standard will be including unionized workers is lower today because of the way because of minimum wage and because of these things that i want to get back i want to get back to a sequence tracy and i have

a graph of government spending we can see that total government spending is over three and a half trillion dollars the deficit is eight hundred forty five billion dollars we're paying two hundred twenty four billion dollars in interest and the sequester ration is just around forty four billion i mean that's really that's not look like my view and we put into perspective the total amount of what the government is spending and then according to the g.a.o. there's a lot of overlap and duplications within the government i mean how can agencies really not get together to streamline these cuts that we don't see hysteria within that government programs that are saying. well look you know the look small but it's going to have profound effects there are people who need chemotherapy their p. treatment were being turned away there's unemployment benefits that are being cut by ten percent meals on wheels programs are being cut this is real pain for real people and it's also taking money out of the pockets of people who spend money which is the last thing we need when we're in an economy where there's no demand whatsoever your you can you can open up

a shop as much as you warn you can start as many you can start your shelves with as many products but nobody's going to buy anything if they don't have any money because they're they're losing and they're going to buy me a comment or a reason to read it from everybody has to come from somewhere well ok when it comes to action the money comes from wealth creation the money all the money all the money in the economy comes from the private sector and you tax it because it's not sure that you're sitting on the shillings of dollars of no they're not doing anything with it there is no money out the other than money and wealth created by the private sector all you're doing is redistributing wealth that people in the private sector have created so if you want more wealth if you want to hire a really deep you want more jobs if you want more people to buy the goods in the in the grocery store the. you need to create jobs in the private sector not in the public sector because every job created in the public sector requires us to take money from the private sector so it's a neck loss it has to be a net loss the multiple on government spending it's always negative there's no mathematical way it can be positive so if you want to create more what you need to

do is free up the private sector and allow them to invest the capital create some sudden seat about with you kind of thing in the private sector is doing just fine corporate profits as a percent of g.d.p. are higher than they've ever been before in the history of america and here we have if you look at the forbes four hundred list and you look at who sits atop of it whether it's the koch brothers the walton family everything they have a.q. they have billions and billions and billions of dollars that they tend to spend in their lifetime or anyone else's lifetime how is that good for an economy because we should have gone through a bank and found some rich guy to make your argument look the fact is that corporate profits are at record highs but cooperations and not the number one wealth created in this country and job created it's a lot of it is small to medium sized businesses that are hurting because they're being regulated and taxed and profits and not being we invested in this economy because of the growth of regulatory state because government is it is impairing their belief to create jobs i wish i want as i have yes that money create an

environment that is friendly to business that is the solution that more you attack business the more you attack the forbes four hundred the less the inclination of those people is going to be to i were talking about government regulation i want to get at another point that sam had mentioned before i think you know he said that government regulation regulates the economy to prevent the abuses that have the middle class a minimum wage ally's the workplace safety wise but how do you think these programs have really been effective in protecting the middle class were not wage laws minimum wage laws protect union workers and they hodes low income in a city. the youths youth are being hurt by this unemployment among young people in the united states today is approaching thirty percent because of minimum wage laws and because of all the other labor regulations who do they protect if we raise the minimum wage what we protected the union employees who have their salaries linked

to that c.s. that the upper middle class gets even gets even better without even doing anything but what you really hurting are the productive young people were never going to get a job because minimum wage prices them out of the economy and that's a tragedy and this yeah i mean labor unions have power and a lot beat but you know give them a lot of benefits you know what i don't have power they don't necessarily which they don't necessarily deserve but it whose expense at the expense of young people and the expense of poor people. that was sam's tax political commentator and you ron brooks the executive director of the iran institute i've next i'll be hosting a debate between prime interest producer bob english and mark levine at the end side scoop on the marketplace fairness act that passed the senate last night all discussion online retailers charge state sales tax then in the daily job bob inglis and i will talk about whether big coins should be regulated or not will be right back.

i've to the song and good morning we will remember that we will.

let me let me are going to let me ask you a question. here on this network is what we're going to debate we have our night show. with you the sights staying there to get married at the rate we're talking about surveillance me.

last night the marketplace fairness act passed the senate sixty nine to twenty seven this bill would require online retailers to collect and calculate sales and local taxes on online sales that cross state lines now currently online retailers are only required to collect sales tax and saves that have a physical presence i have with me now our t.v. producer bob english who is staunchly approach to increasing taxes on small businesses and mark levine who believes in leveling the playing field with sales tax fairness between online and traditional retailers so mark can you please tell me why you think this though is good for american because first of all this is not a new tax consumers are already required to pay sales. axes are what they call use taxes on the things they buy the question is whether people should be able to cheat and avoid these taxes and people have been cheating and avoiding these taxes house really for about twenty years because even though you are required to pay them most people don't pay them they don't know they're supposed to pay them they don't fill it out on their tax returns what this does is says that best buy and target don't

have to get punished because of amazon or e.-bay or an online retailer it exempts small retailers those that have revenue under a million dollars and they give states sorely needed aid just from the tax cheats what's the problem how do you think people are really keeping your taxes here i don't think so i think they have some cover from two different supreme court decisions that came down one forty five years ago and this was basically an out for people that have to pay sales taxes or state sales taxes for these goods that are coming in and out of the state supreme court kicked it back to congress and said all right congress make something up at one forty five forty six years later here we finally are and as to the you know as to the question is this twelve billion dollars per year that's going to be generally the supreme court said that people do not have to pay these tales they said they don't have to collect sales taxes they said people still have to pay them because the state law requires you to pay them but the online retailer doesn't have to collect them for you see when you go into a store and people have to pay them but the retailers don't have to collect it and

that means that most people aren't paying them because the way you go into a regular store they collect in the cash register you know you pay something a dollar and here's an extra six cents and they charge you then and there the way these works you had to pay a dollar now and six cents later on your tax returns and nobody would do it when you tax something you get last episode is that really a time in our economy when we want to stifle sales if you don't like sales taxes then go to your state legislator and tell the cut sales tax but this idea that best buy gets punished what state legislators and i sales tax i call one i mean it's the issue that's democracy right if you don't like the democratic prosperity of the summary ok but these are it simply is fairness across the board the same tax how we should be. i mean this is this is essentially a progressive tax this is going to hurt middle middle income families more than the rich i mean how do you justify that. and i actually firmly agree that sales taxes are worse than income taxes you know we democrats tried very hard to get the fair

the rich to pay their fair share and they said only if you make well the forty thousand dollars will be going to increase your taxes are going to happen based on amazon sales not the rich paying their states are hurting and the reason they're hurting is because the recession because the reason they're hurting their own money and they didn't get more for less they did before republicans have cut aid from the federal government to the states and so what are we seeing we're seeing cuts in teachers cut simply stop the cuts in bridges and roads and all the things that states do the answer is this tax is already on the books so let's just apply it for so then we want to pay for teachers went on line sales teachers should be paid for with sales taxes sales taxes pay for all kinds of things at the state level the tax that already there lotteries well not to bring in money to actually to actually the most regressive tax we have. is a supporter of this bill do you think that it's possible that wal-mart is trying to get. people back into their stores i'm not a fan of wal-mart because they don't pay the workers enough so we get a whole topic on wal-mart but the end of the day i don't see why brick and mortar

stores should be punished actually they have higher costs they have to get the goods bring them in the store and a lot of people go amazon shopping right they go to best buy they pick out their t.v. and they go to their internet and they buy something on amazon what about a variant of what's going to prevent unintended consequences like start up companies amazon competitors going to canada going to mexico and you know you don't think this is going to push business outside of united states if you're a startup company if you make a hundred million dollars in sales you're already exempt so that's a very low bar but it is a low bar in terms of international there's all kind of you know there's nafta there's all kinds of agreements some countries we tax some countries we don't tax that's a different issue at the end of the day it's just a question of fairness make the same businesses pay the same taxes for the same consumers i don't see. making people pay twelve billion dollars a year and sending it even if it is to their state government who might need it more than the federal government the state governments or local governments do not spend wisely they don't know they don't use price signals based on their behavior they wasted a lot of money the securities and exchange commission is finally looking into harrisburg pennsylvania that was selling fraudulent bonds to investors and this is

this is right because across the country now if you don't like state sales taxes contact your state legislator to lower the taxes it should that's the only system we've got it's with the churchill said it was the worst system in the world except for all the others so look it's the best we've got the main thing though is to be fair to should be applied fairly we shouldn't punish best buy and reward amazon we should charge all retailers the same way maybe if we do we can actually lower tax rate and what is the chance of that happening the hounds i think you think it's got a good shot because i think a lot of small business owners who want everyone to get their fair share you know target can charge less if it is that they're getting amazon has to pay a little bit more so i think you're going to find this will pass the house but it's going to close as was mark levine from the inside scoop an r.c. producer bob english thanks for talking about you guys thank you i

. today mary jo white the newly appointed s.e.c. chair testified to the house appropriations subcommittee on the f.c.c. budget so let's take a look now at mary jo white the woman who was picked to oversee the securities industry when she was first nominated for the position we saw reports proclaiming mary jo white has a record of tough prosecutions and mary jo white will be a get tough to keep wall street in line well maybe she can rail and a whale of a banker like jamie dime. as the us attorney for manhattan and she won some high profile cases against mobsters terrorist and financial probs while securing convictions against the mastermind behind the one nine hundred ninety three bombing of the world trade center and against a mobster john gotti bad but there is another side to mary jo white one that was

made humorously evident during a panel at the n.y.u. school of law. finally to my extreme let's we have mary jo white currently a partner and head of litigation that the boys in clinton where she seems to represent just about every senator institution that has anything to do with any of the financial crisis cases out there what i say to. since two thousand and two is she has defended some of the biggest names in banking including morgan stanley and bank of america to her connections with these big banks matter well in two thousand and ten white bro in a motion some have looked to assign blame for every aspect of the financial crisis even where there is no evidence of misconduct this sounds like a get tough sheriff to keep wall street in line but that's not all she told the huffington post last year and the financial crisis was so expensive and so many people were injured that it's ones and seem to think that there must have been

massive wrongdoing from the top on down criminal cases must be built on compelling evidence not just positions and evidence of broad based misconduct that would rise to that level it doesn't exist. this is the person who will be in charge of overseeing and best a geisha of securities fraud and fraud related to the financial crisis and the letter to the senate banking committee that as these see occupy the as the see also raise the issue that a former as the c. chairman had to recuse himself from many cases that involve his prior clients why because the oath of office every as the the chairman must take this would allow a jamie diamond eggs like his very own at j.p. morgan to receive an extended past because white defended j.p. morgan from two thousand and ten to two thousand and twelve and several cases relating to the financial crisis and this is how we profile mary jo white our newest as easy chair woman.

and it's time for the daily jewel joining me is our t.v. producer bob inglis good to see you again thanks for joining me so evidently quotable bart chilton of the c f.t.c. he added again he's the commissioner of the futures industry regulator he says if anyone is going to regulate big coins it would probably be the c f.t.c. because it might be a commodity that can be used and driven if and traded on computers so what do you think this is the. well first you've got to love bird chilton because as you said eminently quotable we gave a quote the other day that he wanted to put

a good housekeeping stamp of approval on all of them so he has great ambitions for regulating just about everything you know he wants to get his hands on but coins and he cited the fact that they're traded on computers that might be derivatives he should be reading the see if he's. the about page because the city of d.c. already regulates money and i just wanted to see a few things jobs to save consumers from they had wrong doing and it's possible that bitcoins could be involved tile or they are dangerous to consumer maybe we could put a warning on the package but there is no package but what i'm saying is yes there are there is a lot of volatility in bitcoins but that doesn't mean that the c.r.t.c. should unilaterally usurp authority authority to regulate something that people have created on a voluntary basis that's well known the the algorithm for creating these things is open source and people should be able to trade them freely even knowing that there is volatility all you have to do is open up a chart to pleasure that zero quote what if the creator when he said there is going

to be twenty one billion back or twenty one million and what he wants he's a twenty one million but what if they just make more and now you know your clients aren't worth what you thought they were to begin with and you've had thousands of people poring over this algorithm and nobody's come to that conclusion so i think it's pretty safe there what will destroy the big korean market is closing the bottleneck that is when you have to convert to another currency like the u.s. dollar euro to buy them governments can just arbitrarily shut down at will and i think that's where they're going and where anything evidence of that the man who invented the hateful yeah you know i'm here and he's hauled out because of this reason so a big point isn't even people backing it are flogging it. ok that's all we have time for i think that anything about.

it was a contentious day here on prime interest tax or not to tax that was the question posed to mark levine and bob inglis apparently the marketplace has been unfair to wall. on amazon merrill lynch versus countrywide vs m.b.i.a. all owned by bank of america at least in part all we can say is of wow mary jo white can't seem to make up her mind white shoe law firm or f.c.c. that was surely would not simply have shrugged after watching sam sachs go at it with iran from the iran institute and finally our children strapped on gloves to battle big points or at least regulate them thanks for watching thanks for you come back tomorrow and be sure to follow us on facebook at facebook dot com slash prime interest from everyone at prime interest i'm hearing and boring have a great evening.

for you. all or look. at least. partly. due. to.

the.

in the early hours of a hot july dawn a group of unusually dressed people carefully head on to the shore of one of the me up as tributaries their clad in servant military uniform from the days of world war two. in the summer of nine hundred forty one on the sort of view of a crossing the a small landscape one hundred thousand people were killed while they were trying to escape the surrounding enemy eyewitnesses say that the river ran red with blood for several days.