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No solutions in sight on debate over Obama's tax plan and Bush-era tax cuts, but Dems and Republicans will go on August break anyway
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You've heard the warnings we could be headed over these so called the fiscal cliff so what is congress play to do.
Burn the Midnight Oil well not exactly.
Try this one going on vacation that's right.
Next month both the house and senate will take a one month recess.
They'll put -- I would tax rates and spending cuts and don't after the election -- lawmakers have any other plans to actually fix the budget.
Senator John -- is on the budget and finance committees we spoke with him a short time ago.
-- -- -- -- I see Greta.
This week -- chairman Federal Reserve board Ben Bernanke was up here and he warned everybody -- here is that we're in deep trouble and even some collective action.
I hear many people say that we're gonna hit if this is Miller left.
What negative -- Well I think -- two things that we ought to do due to avoid going over the fiscal cliff one is to extend the tax rates that are set to expire.
At the end of this year which would result in a massive tax increase on people Americans all over the the board next year and secondly to do something that would avert the the defense cuts that are gonna just devastate our national security.
Priorities and replace those with cuts elsewhere in the budget those are two things that we could do I think right now.
The fiscal cliff -- it's been described it consists really of those two elements and the concern is according to Congressional Budget Office is that we don't take steps to address that.
That in the first six months of next year could cost our economy one point 3%.
In an economic growth which according to the CBO would in their judgment probably result in a recession.
Isn't this particular troubling at least I think it's -- traveling -- is that.
Last November -- the super committee couldn't come up with a you can handle the end of the sequestration the budget cuts.
And then after they could this is like everybody gave up.
And when did all -- did was talk about it is still wasn't fixed now senator Murray a Democrat to see you how important as we move fast and do something about it.
And I even though nothing's been done since November on either side.
Coming up in August there's a recess.
Everybody goes out no one's doing anything about it and the first time -- really gonna hear -- thing about when the heat is put on all of you.
After the election the lame duck.
When people making decisions who have been voted out office who is a problem.
Which is a bad time to make that decision.
The House of Representatives is gonna happen next week they're gonna extend the rates they're gonna pass legislation to extend the existing tax rates for a -- -- -- you don't have this big tax increase.
On January 1.
And I think the thing that's concerning though it is you saw perhaps in senator Murray made a speech at the Brookings Institution earlier this week and there was a story in the Washington apples over the weekend which said.
The Democrats are threatening to go over the fiscal cliff.
If Republicans won't raise taxes.
And I think it's terribly alarming and irresponsible.
On their part to suggest.
That they would throw the economy into a recession risk higher unemployment than we already have.
I simply to make a point about raising taxes.
On the people who create jobs in this country so I wee we wanna do something about it we wanna do something now as opposed to after the election when you get into the cloud of a lame duck session and that's not it that's not a good time in which to legislate.
In not a good time in which -- -- good thoughtful policy.
-- the words of the grenades and fired back and forth between Republicans in the senate -- and -- Democrats on -- senator Murray's statement about there already any Republican is is in the meantime is at the business community assists are sitting issue.
What do you do we don't know what to do we have tested going upward or Dow -- -- -- how to run our businesses their ball put on the sideline.
Waiting as they have been only since last November waiting for -- -- an answer are they going up or down.
And it is stifle the economy by the fact that there's been in activity here.
Right and I think that's that's the problem you got to make people in this country too many businesses who -- making decisions predicated upon.
What's happening in Washington DC and we need to eliminate that we need to eliminate the uncertainty.
By providing at least a year of certainty with regard to tax rates and then we ought to get into -- debate lecture about how we fundamentally reform the tax code to make it.
A more simple more clear more fair more than that the rates broadened tax base.
But until that time businesses need certainty.
And and that's why I believe that the senate ought to do what the house is gonna -- next week and has extended rates for a full year were saying that we can't afford to go over close.
Fiscal -- it is too dangerous to the economy becomes very fragile right now.
We've already seen sluggish growth this year.
The president said two years ago when we had over 3% economic growth that it would strike a blow to the economy.
To raise taxes well today.
The economic growth is considerably less -- that it's all about 2% -- a little under.
And now all of a sudden he wants to have this tax increase over.
It's it's a mistake to raise taxes when you've got the kind of economy we're dealing with today Republicans -- to do something about that the house Republicans will next week and I hope that the senate will follow suit.
But it's gonna require some Democrats to be willing to work with us -- That's a sense -- argument that's no that's the position but we don't even get to that.
Because in me in there there's so much time or nobody does anything I mean the fact that they they could -- super committee last year when it -- meet its deadline there was nothing to stop them.
From continuing to meet those ends -- nothing they could imagine December or January you think met their deadline if they came up with somebody could come back to congress.
Wednesday and industry gives up and waits for the next day deadline some horrible crisis -- pushed up against some deadline.
Well I think that's it.
It by mushrooming and they did deadlocked.
And our folks were willing to put some revenues on the table in exchange for entitlement reform -- something Democrats were willing to accept.
But the consequence of that now we as we get these draconian cuts to our national security.
At a time when we can't afford that and we've got to a lot of concerns about that's how that's gonna impact our ability.
To defend America's interest around the world that the Defense Secretary said the cuts would be devastating.
And -- so we need to do something about both the to replace those to to find the cuts elsewhere in the budget so that we're not taking a disproportionate amount -- the defense budget.
And secondly to do something on these tax rate so there's uncertainty mills -- the two issues really.
That that that compose the fiscal cliff and that's what chairman Bernanke said yesterday said what's happening in Europe in the fiscal cliff for the two things -- really affecting the American economy.
And I should I should also add that the end and and make an admission Lindsay it says senator Harry Reid who could put the ball -- Well leading -- sure he's like he's the one that concerned he's the one that runs the senate now and then at least you know whether ninety degree at least in recent -- -- was -- -- mind.
That's right and right now most of what we're doing in the senate is all these political exercises -- we're doing these sort of show votes which are designed to I I've in the senate right now is kind of become an extension the presidential campaign and it.
-- guess you wouldn't think the American people and that's you know.
That's -- -- the responsibility is for the lead for senator Harry -- senate instead -- -- gaming gaming everybody leading up to the election -- all this Americans with real problems.
I want a real issues to be resolved and right now as you -- all these votes at the shop.
Yeah well and I think for them to say that we are willing to goal for the clips of the fiscal cliff again I mean that's terribly reckless in my opinion.
And and that's what some of the that the leaders in the Democrat side -- senate and in so far the president.
Has not walk them back from that now I think in order to get this fiscal -- addressed this addressed -- -- take leadership.
From the White House as well and I hope we'll get -- -- right now we're getting -- votes on the -- the United States and we're not dealing with the fundamental issues and the problems and challenges that face our economy.
In our job creators of the American people so the president to make called senator Harry Reid but the ball -- let's get some reckless it away from the show notes.
Capsule away and I think that says that happened today you would see some action probably tomorrow.
Senator thank thanks --
