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Payroll Tax Cut Compromise

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    Reps. Doug Lamborn, John Garamendi weigh in

  • Duration 6:12
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It seems that everything we've done.

This last year has been saying knock down drag out fight there's no reason to do that if there were not if -- -- -- message received from this last.

I think we've been through I would hope especially a repeat the new members -- house we'll understand legislation.

He has the art of compromise.

Well that from senate majority leader Harry Reid after the house and senate finally passed a two month extension on -- payroll tax cut just in time for the holidays.

Now this agreement is less about compromise and more about a deeply divided congress over how we're going to -- for a full year tax holiday.

Joining me now democratic congressman John Garamendi of California and Republican congressman Doug -- board of Colorado gentlemen welcome great to have you here today.

Merry Christmas Merry Christmas to you too.

Let -- Begin with you congressman -- -- this is an eleventh hour deal as we all know.

Again this is bitterly disappointed the nine a Republican freshman who came to Capitol Hill on a Tea Party wave to change the business as usual politicking.

Among lawmakers on both sides of the -- What's your reaction all.

This.

One take away I have unfortunately is that I thought I could trust the president he said as early as latest Friday that.

It would be unconscionable leave town without a one year fixed so we take him at his word we give -- -- one year fix.

And he turns on us.

He's lost a lot of credibility in my eyes he's a very poor leader unfortunately.

Well coming here many if it took this long to get a two month extension.

What makes members of the house and believe that there are going to be able to get a deal.

By the end of January at a time when so many people are so upset with congress at this time or not getting the job done.

Well we certainly have some heavy lifting out ahead of us the recent go to get done is that the public does not want a tax increase middle America does not want to tax increase.

And frankly they can't afford it.

So we'll get the job done and you hit it right squarely on the head when you said it's really how we're going to pay for this.

We don't want to increase the deficit so we don't want to go to deficit financing.

We got to find a way to pay for -- the Democrats say.

Well let's could go to the super wealthy and -- surcharge on all income over a million dollars.

Whoever that might be it's about 330000.

Individuals in the United States Republicans hold a different view and I'm sure Doug will expressed that view but.

It's that how we're going to pay for that we'll have to wrestle with in January and February we have two months it will be a heavy lift.

-- a -- were a number of house Republicans feel betrayed by the speaker of the house John Boehner instead of standing firm against a two month extension.

They say he gets -- to intense political pressure.

Do you agree with that do you think Boehner can politically survive -- -- going forward.

Oh absolutely he did everything he could I have no qualms with speaker Boehner I know -- that I know seriously does either.

We were let down by the president we took him at his word that he wanted to add to the one year full text that he didn't back -- step one this it became clear the senate.

Didn't want to come back from their vacation so.

And it's not good speaker it's the president that -- keenly disappointed and.

Well at the same time though the speaker was standing firm up until the last minute that he was not gonna support this two month extension.

And yet many people are saying -- Political necessity got in the way and in the -- one at a time when he was doing was intense pressure.

To support -- if.

Well that that could be there was a lot of pressure I think we could have done it in early early January made it retroactive for weaker to.

However.

We will do a full year and everyone agrees on that.

John is right my good friend from California John is right how to pay for it is -- -- be that the problem.

Now I think that we should not tax high income.

-- tax returns because 80% of those according to the Wall Street Journal are from small business.

These -- the job creators that we wanted to be able that it.

Had that money invested in new jobs not just turning it over to the government bureaucracy.

Well come here many how do you think Republicans and Democrats can bridge that big divide over finding items like getting -- -- you're payroll tax.

Extension as well as extending unemployment benefits through cuts in spending or higher taxes on wealthy people.

We've only -- gridlock on this -- do you expect this to change in election year.

Well we've already seen compromise we've already been able to do that and that's what the senate did for two months and that's I agree that's too short.

But it was a compromise and right at the outset to Harry Reid said the only way we're gonna get this status with some sort of a compromise.

And there's a vast difference I disagree with Doug about idea.

The impact that -- one to -- even a 3% surcharge.

On income over.

A million dollars would have on any.

Any jobs program and in fact most of those jobs I would disagree with Doug's point here.

But the point is are you -- to make the middle class pay for a middle class tax cut.

Or are you going to go somewhere else to do it the Republican proposal basically put the burden on the middle class to pay for middle class tax cut.

As well as for the Medicare program.

This has been known as the doctor fix.

A very significant reduction in payments to doctors.

Has also been avoided in this two months so we've got some very heavy lifting to do will have to find a compromise.

We don't want to go to the deficit we've done enough of that already we have to move to some way to pay for it.

Some cuts and other programs can be made and and the Republicans I think correctly pointed out that that's a piece of the puzzle.

It's gotta be heavy lift but we can do it we write it because we've got to do it.

I that's right got to come up with something -- -- -- -- democratic time but I really appreciate your -- I mean going forward -- -- -- -- A hard battle that lies ahead for you in 2012 we wish you all the best Merry Christmas happy new year to you.

-- -- and -- and -- for your family.

You -- job.

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