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The Hill Report: Tax gridlock

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    Bob Cusack from The Hill on where congress is on this ticking tax bomb

  • Duration 4:57
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-- -- -- only about the is the the extension of bush era tax cuts and -- in tax really what's gonna -- says it's.

-- good question I'm not sure exactly what's gonna happen but congress that really is gridlocked on taxes now there's talk of tax reform before the election but that's can only be talk there's not going to be actually any action until last the election of course the bush tax rates are expiring.

And that and Republicans and Democrats have to decide what they're going to do are they gonna extend them like they did.

And 2010.

That would be quite costly.

But if they don't accent and then it hurts the economy and that away according to economists and according also -- -- Ben Bernanke added that the Federal Reserve Chairman so.

The deficit I think at the end of this year it is going to.

Possibly explode.

Because there aren't a lot of offsets ways to pay for -- these.

Tax cuts as well as a slew of other issues that they've got to address including raising the debt -- Here's -- -- Obama had made it very clear that he was not going to extend those bush era tax cuts and just like you said we're not gonna know what the president's gonna do until the election until after the election.

We thought we knew what President Obama was gonna do he wasn't -- extend them but then he did.

So this -- what I mean and he was really -- -- about not extending those tax cuts but he gave them.

So compromise has not certainly been his strong point when it comes to.

I guess.

If congress and his relationship and trying to get them to come up with some kind of unified decision but.

When push comes to -- come next year -- mean we don't have the money to extend these again I mean I think Obama was trying to appease Republicans.

And show them that he was willing to bend on an issue that he felt pretty strongly about but I don't think it's a come next year.

There's going to be any bending -- -- If he's really -- It it it's it's hard to say because our Democrats on capitol -- have a difference of opinion with that their own president.

On what is the wealthy that the president puts it at 200 -- I mean -- out but he has now lost count I think it was 250000.

Now at some brilliant he wanted to yet Democrats -- million dollars.

I -- -- what is -- so what tell me what what is rich in this country now I guess according to Democrats is it a million now that the latest figure that did he got to Democrats on Capitol Hill including senator Charles Schumer.

From New York says that should be a million Obama now the only president has gotten -- -- for entire family so it's very confusing that the huge spread 200 that it -- look at somebody company to contract here's one for 250.

And here's one for a million I mean canning so I mean you can't let those two numbers into the same conversation.

-- -- -- -- read -- as a taxpayer the president in his rhetoric doesn't say to fifty he says millionaires and billionaires but his policy is to fifty so I can use that extra revenue for his budget.

But but if so what it's I think the dynamic at the end of this year is -- and obviously depend on who's in the left who won the election but if it's a draw let's say.

-- over the Democrats retain the White House but Republicans win the senate.

It's going to come down on the wire of what -- -- now I think the most likely.

I think they going to do is punt.

Because congress is very good -- -- six months in -- 2013 into the new congress and then they'll try to do a grand bargain big tax deal.

Come summer of 2013 because congress is very good -- kicking the can and a for a.

He they are because that's for sure.

I guess the question now is going to be will -- even make a difference I mean if if if let's say OK so the tax cuts will not be extended the rich worm.

Whatever they are whatever their decided to be over a million dollar earners were 250000.

-- family.

Okay so are they really gonna make a difference our deficit as you said is about to burst so taxing the rich I mean a lot would argue that it's not that is not gonna get us out of the mess that we're and so why -- tax those that are employing a lot of the unemployed in this country and running small businesses and having to pay for health insurance costs and doing a lot of the stuff that.

That they wouldn't be able to afford I suppose if -- their taxes -- to go off.

That's finance -- Republicans are saying that it they don't is that attacks -- problem -- it's a spending problem and if you collect all that tax revenue for millionaires and billionaires.

-- puts a dent in the deficits so you've got to look at entitlement spending.

The Republicans say they're not.

They are not gonna raise taxes on anyone whether you make a million or five million so will they compromise on that remains to be seen especially with.

Many on the right saying don't bend it all the president looked babies -- before.

So it it's going to be another yet another showdown in Washington right after the election.

And it's going to be pretty intense I think.

Are you Bob Cusack yeah you're right it's going to be intense that's that's an accurate predictions have made easier because I'm not so you're managing editor of the hill of course it's -- Bob Cusack everybody.

And it's the hill dot com thank you so much Bob thank you.

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