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And that is Massachusetts governor Mitt Romney in London today for day one of his overseas adventure.
Meeting with the -- critical ally obviously in London and prime minister David Cameron.
And this is power play live on Mike Emanuel sitting in for the vacationing -- All -- -- -- and I'm joined this morning with.
-- lovely and talented AB star columnist for the hill and we have plenty to talk about even as a dog days of summer heading for triple digits in Washington DC.
There's always plenty going on what -- 103 days to Election Day but who's counting that Kevin Madden of the Romney campaign to us this morning.
So -- where are things in the presidential race right now you've got Romney overseas trying to.
Convey to American voters that he's a suitable commander in chief but.
Most voters this election cycle -- worried about the economy.
Well.
-- in a really good job all along since the primaries ended of really hammering this one -- that that that the president was out of his depth and he wasn't prepared to fix an ailing economy the Romney years and at this.
Economy's not improving it's time for President Obama to go.
Recently he's been X -- under attack about his tax.
Records and his offshore accounts and his experience of Bain Capital this one trip provides him a real chance to change subjects and I think the real moments are sort of that would raise the confidence and comfort level of Americans that he is.
-- potential commander in chief.
That there are other issues -- -- Leon besides the economy.
And she's been so critical of the president.
On this -- foreign policy as well as its domestic policy I think this is a moment first for Mitt Romney to two.
And without criticizing any more or maybe -- suggests a new path forward in some -- challenging.
National security and foreign policy.
Problems and and I also think if you look at those polls when you ask where's this race it's not -- we've had a very intense in July.
And the polls don't -- they're very tiny it's not the Mitt Romney can't pull away and win this election.
But the one issue that he really dominates.
On is the economy and everything else -- like ability really ability who better understands the middle class.
Who is best equipped to handle a foreign policy crises the president always -- and about -- -- he's still remains ahead of Romney so.
It's a moment where Romney needs to start to try to work on pulling away.
Do you think there are some in Boston at his campaign that was the timing of this trip were different because.
They have been attacking the president -- small businesses you didn't create this in fact.
We have the -- their latest Romney at us take a look at that.
You've got a better.
-- Mr.
President don't either.
Who took the rest we'll put in the long hours.
Your words are -- -- but your actions over the last four years being louder.
So that's the latest political -- from the Romney campaign.
Pouncing on a statement the president made in Virginia recently so.
You know I think that he timed this trip out so that he could be here for the opening of the Olympics.
He is wife has a horse an -- -- event of the Olympics.
They couldn't change the timing of this it's actually perfect timing him back and and -- announces running mate.
And then had a couple weeks to build excitement before the convention and partially fund -- and have a seconds sort of candidate out there.
-- rebutting attacks attacking the president.
You know these -- about the president's.
This really.
Biggest blunder yet that statement about how the new business owners and -- -- businesses that's not gonna.
Grows -- will hear those ads from -- campaign in September and October the Regis is potent and.
I can promise the Romney campaign -- the Obama campaign will return to his offshore tax havens as well.
And these are these are powerful tax on both -- it doesn't really.
I don't think it really hinders the Romney campaign's momentum that he's overseas well is that -- are just getting started on the airwaves -- to use them again.
Let's take a look at the president's latest ads -- of course bear down -- Of course Americans build their own businesses and every day hardworking people sacrificed to meet payroll and create jobs and make our economy rock.
And what I said was that we need to stand behind me -- America always -- my investing in education and training roads and bridges.
So clarification from present and -- states about the small business comments if you believe the Republicans they would like you to believe that Chicago's in chaos.
BC news stories about White House advisor is going to Chicago spending time.
Inside the campaign headquarters.
How big little blunder was this is this -- -- in late July -- the American voters.
Well I guess it's not 88 win.
People pay more attention following both the Republican and democratic conventions.
That it will return as a theme it will.
He will be haunted by those words he -- in 2008 when he said that people.
You know get bitter and cling to their guns and religion it's -- it is that it's an historic blunder it will following the rest of his career.
Because if you couple it with the private sector is doing just fine -- really paints a portrait of -- That's the president.
-- position in in what the Republicans see as a real kind of.
You know a battle over how were going to.
To get under our burden of our debt just to -- produce -- deficit.
-- stave off a fiscal crisis.
By reducing the public workforce and enhancing the private workforce and their argument is that President Obama will they -- is trying to push a bigger government.
And too much government health.
And so he can't run away from us commented on the roads all he wants and the good teacher he wants half.
All the support me loving family but the fact that he is trying to make the hit it exactly said those words were really stay with him whether he likes it or not and you know -- When he's making an -- referring back to this comments they are worried and all the staffers that worked -- -- -- because their supporters are worried that this is a comment that we'll stick.
You mentioned a short time ago about the running mate issue for Mitt Romney.
He said to Brian Williams last night no surprise he's not gonna do allies overseas.
Does that mean that we should expect an announcement as soon as he gets back or or where you on that and where are you in terms of who is going to passes.
Is that really an interesting parlor game that I'm embarrassed to admit I'm you know knee deep in so we're looking at the week of the six.
I'll be on vacation the -- of the thirteenth some really hoping it's a week of the six.
But yeah we're thinking all along that he wanted to -- you not wait to be the convention.
To begin as I said to use his number two.
Time to prepare for debates to be out on the campaign trail three -- attacks from Obama to fund raise and to attack.
Biden as you know -- out that vice president already attacking in full swing so.
We are anticipating that that announcements coming shortly after the European trip and again we could be wrong.
But they have really made it clear that they saw the advantages and -- it in not waiting until the eve of Tampa.
We've heard names like senator Rob Portman from Ohio Bobby Jindal from Louisiana the governor there -- Tim Pawlenty.
The former Minnesota governor.
Where you what do you think.
I'm -- department -- Pawlenty.
I think Pawlenty does the least harm.
Because he hasn't any baggage from the Bush Administration both of them on paper are the most ready.
I want to be president and.
They.
Have you know very very broad understanding.
Most of the legislature that -- -- the executives.
Responsibility of of being a governor.
Rob Portman has worked across government.
They really they have.
I think all the requisite experience and did that.
That -- for the most problem free of all the candidates.
And stick it always be a surprise but I think we are looking at at doing our own candidate is looking -- -- do no harm pick.
Right AB -- thank you very much like please check her out on the hill and in online hard copy whatever I will be right back talk a little Capitol Hill politics is more about when he twelfth.
-- -- This afternoon.
The senate passed a bill -- there is if you -- -- 102000 dollars a year or less your taxes should not go up next.
This is something I deeply believe in because middle class is still struggling recovered from this recession.
You don't need your taxes to go up.
And we could give you certainly right now but.
Of course we're dealing with -- Washington so Republicans on the house.
They said we're gonna hold a middle class tax cut hostage.
Unless they get another trillion dollars worth of tax cuts.
For the wealthiest 2% of Americans.
Welcome back power play on Mike Emanuel filling in for Chris -- Walton that was President Obama obviously in favor of the Democrats passing in the United States senate yesterday the tax cuts for those making up to.
250000.
Dollars not expected to go anywhere in the House of Representatives because the Republicans there would like to extend all the bush tax cuts.
We've got a couple of experts here to break it down for -- talk a little bit about Capitol Hill which is my home turf.
Joining me here in the studio.
And they're sitting very close together and I'm sure they're not gonna drop the gloves and start back smacking each other around.
It's a -- -- What about the tax cut issue where do we go from here they seem like -- like the house and the senate as we've -- a lot this year -- miles apart on -- yeah I mean.
Look I think.
When we could have a very partisan conversation here and I actually think that both sides for the good of the economy really need to get together.
And do something about the overall tax code because there's a serious problem there both.
With our corporate tax rate.
And also.
A lot -- Loopholes that are in the tax cut now the vote yesterday I think look at it problem won't go anywhere.
Symbolically.
I think it's hopeful for Democrats -- messaging standpoint to.
Show who they stand for who Republicans stand for I think what I really wish the president and Democrats would say more is that.
Everyone gets a tax cut actually under what was passed yesterday even if you make a million dollars two million dollars on the first 250000 dollars.
You would get a tax cut those rates go back I -- -- let me let me just finish.
Overall for those folks they would see about a ten to 151000 dollar.
Tax tax cut.
So I I think that you know the house probably won't do anything I don't really understand from the Republican messaging how they can actually just a final.
Let's let's let let me jump -- -- I do agree with you that this is ridiculous because essentially not to -- certain investments the economy and -- -- -- actual formal corporate -- -- the -- the world.
And the individual tax code that said though what President Obama in the senate Democrats essentially saying his.
To the top 2% were one million small business owners who file their business and someone -- sort -- If you've built that you're going to be taxed for the wrong and right now given the fact we have forty straight months of unemployment at 8% higher this is not a good thing in -- thing is it's not just the earned income to rise.
For the wealthiest 2% what's happening here is -- capital candidate jumped 15%.
23 point 8% and we're trying to create certainly -- market.
What's gonna happen some -- some 27 is that people sell their investment income instruments and further for the throw this weak economy and of great change.
Well let me just let me just say this first of all it you know -- -- around this.
What is -- been debunked.
That small businesses would be taxed because of this plan -- in fact 90% of small business wouldn't joint tax cut under the president's plan.
And the 2% that Republicans point out many of them are passed through entities that are subsidiaries very large consulting groups.
Merger acquisition -- so look the the larger issue here and I don't know when this is going to be settled I think it's not gonna happen in the lame duck it's gonna happen next year or the year after their needs to be a wholesale reform of the tax -- I think we.
I think I -- democratic Republicans agree on I think we Democrats or Republicans also agree that.
We should raise taxes on the middle class the problem is we voted for it yesterday and Republicans are blocking and I think from.
A left -- standpoint that could be problematic Republicans don't want to don't want to middle class to pay higher taxes which -- tax adjustment tax increase essentially would most yes it was not as many calls to earned income fifty for some Americans -- confront.
Guys back.
Where there's a big point 403 days out from the election.
-- you know so what's the impact of this vote yesterday.
Did some Democrats who voted just for the middle class tax cut.
Walk the plank who you know those may be tough reelection battles who maybe didn't want to -- in the on this issue preelection actually.
Think they walk the -- it all they can go out there and talk about how they cut taxes for everyone but they don't believe.
That right now with the -- where our deficit is that we should be giving it a tax cut to folks who make.
Over 250000 dollars now from a messaging standpoint look I think both sides are gonna have something to take away from this.
But I don't really see it as a problematic vote for for senate Democrats.
McCaskill in Missouri Nelson Florida did walk to plant one -- we were concerned about which goes back to capital gains was making sure to dividends to go to 45% to twenty.
Republicans and in competitive senate challengers and president -- is really got to Lagos -- the question is is how they use and how they messed -- moving forward.
If they do it right regardless of whether or not President Obama wins reelection they could take this.
I actually think what's an interesting thing that was pointed out an open that was that found in a poll yesterday from when your -- competitors.
I is that on the tax issue actually the president is doing better than Mitt Romney right now it's like he has a one or two point lead that's historically was never the case and I think that shows that.
Not only is his message breaking through but Mitt Romney is having a difficult time with -- is related to his own personal income his business to.
Timing being and that's hurting his ability to make a strong count our response to what the president said.
I wanna get to another topic which is we seen a lot of gridlock on the -- is a lot of people are saying all the election sorted out.
Will the election is sorted out or are we heading for.
Two more years of this or four more years of what we see right now I think it depends on whether or not President Obama as -- -- I do think we're gonna see a lot of gridlock.
If President Obama reelected it is likely we could at least you know tight balance control and maybe the Republicans -- by one.
That said though I do think when it comes to certain issues if we do not overcome like the tax code.
We need the economy's going to suffer.
-- in jobs will suffer as result because the deal here is to create certainty.
Economy in the tax code and that's -- UV that was certainty is not accomplished by opposing the the plan that Democrats put out yesterday what exactly it one -- at a factory -- -- about it we have the same -- -- the tax rates that.
-- defending for years under George Bush and we -- and he was the worst job creating president we've seen in years percent -- one worries over the is it went up three points design have 800000 jobs on we we never had 8% for forty straight months and everybody had 8% before you know that the last.
Year and a half hit three recessions under his presidency three recessions.
But look I think comment at this.
Well this recession started under bush so you're right.
Oh but -- you're obsolete I think what will something happen in the next congress I actually think it just depends on.
You know if -- from Obama wins he wins with a sizable margin I think that gives an -- and -- I think look it's.
If Romney wins he gets a honeymoon period in in there maybe some stuff that could get done it but.
Look were in a very entrenched partisan environment right now in Washington.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Thanks guys thanks.
Attempted these governor's.
Not all most Republican -- the lay the blame.
For this recession.
-- do.
A public sector workers if you listen to the rhetoric.
Some are you guys.
Yeah guys.
Are the ones that came up where these wacky financial instruments on Wall Street you guys.
Are the ones.
Responsible.
For city budgets.
State budgets.
He's so drastically affected.
By this recession.
We inherited.
That vice president Joseph Biden going after Republican governors saying they are anti public sector workers on Mike Emanuel sitting in for.
-- Wall Street Journal columnist Dan -- -- who.
I wish I could take credit for booking -- today but that was somebody smarter than I but perfect timing because he is a column out today.
-- America is to economies.
Dan hey -- that bring it -- good America.
First for our viewers can you lay out the -- pure column today what your take -- Well -- -- a column -- was America's two economies and it seemed to me that you know.
We talk a lot about the conditions in the economy.
And in fact I -- I'm arguing that there are two economies in the United States one is the private economy which we think of as the traditional economy.
And then there is the public economy.
The public economy is what Vice President Biden was just talking about it's sometimes thought of his government spending and I think that.
Since at least the late 1960s.
The Democratic Party by and large has been moving over into this public economy.
And now with Barack Obama's campaign saying you didn't build that I think he's making and an explicit pitch to make the public economy.
Dominate the private economy -- -- explain that just a little bit further.
What economy does people go to work every day they -- comes it comes out as gross domestic product that's a measure of the nation's wealth.
And I think what the Democrats like Barack Obama are claiming is that.
We need a significant amount of that gross domestic product the nation's wealth and we needed his tax revenue to keep the public economy going.
So the one Barack Obama talks about investment.
He's basically co -- this term that is traditionally associated with the private economy.
And he's saying we need to invest in education we need to in -- and infrastructure we need to invest in energy.
He's talking about the needs of the public economy.
And the public economy has to -- claims to a certain percentage of our gross domestic product.
To function like that and -- leave that to what's going on here in this election.
Is a final kind of shoot out I called -- gun fight at the OK corral.
Between the private economy and the needs of the public economy I -- I must say Mike I'll give.
President Obama credit I think he's being pretty explicit about it I don't think he's hiding this when he says that.
You know the United States has to choose between two paths now in Washington.
He's talking about a path in which the -- economy will dominate the private economy.
So and recent polling suggests that President Obama is down a bit with small business owners they're down on his policies.
Vice President Biden is out there rallying public sector workers who are clearly.
A key constituency for the Obama campaign right.
Yeah that's right I mean he he clearly.
Public you know small business owners are are recognizing what's going on I mean they're the ones who have to read the laws like the affordable Barack Obama care.
Or Dodd-Frank and they see clearly that sort of new regulations and -- cost are being imposed on them.
These of the people who measure their cost you know I -- 15100 dollar increments I'm talking about small business.
So they're well aware of that President Obama is making these claims for the public economy and it's gonna come out of down.
Now you know this is raises this long time issue -- whether president Obama's turning us into Europe and socialism.
It's not really socialism like it's basically the idea that the public sector the public economy.
Is more important than the private economy doesn't -- a private economy dies it simply means that the private economy exists to support the public economy.
And President Obama thinks this is the most normal thing in the world -- he says you didn't build that.
But you had all this government to help you.
That's what he means that the public economy is basically the primary.
Driver of of the general economy and American life.
He thinks this is normal it is in fact a very radical idea for the United States and I believe he's asking for a mandate in this election to going forward make the public economy dominate the private sector.
And I'm I'm kinda hoping that Mitt Romney -- some point steps up.
And asks for a mandate for the private economy because at this point in our history I think it needs to be renewed that mandate for the private economy.
So Dan if Mitt Romney's elected what does that spell for the public economy are those people doomed and and what's your forecast.
If there's a Romney victory they're not doing -- look.
From about 1968.
Until say 2008.
Public federal spending federal spending as percentage of GDP in this country has been about 20% is averaged 1% for a very long time.
In the Obama administration it rose to 25%.
Of GDP and we're talking about a fifteen trillion dollar economy every percentage point is a huge amount of money.
And it is averaged about 24%.
And the Obama White House forecast to be about 22% of GDP going forward.
I think governor Mitt Romney and -- and if the Republicans gain some seats in this in the in the congress and attempt will be made to push that spending level.
Back to it's it's it is historic level of 20%.
Of GDP and there's -- You could argue that if it's been around 20% since 1970 that's a political consensus that sort of thing you guys were just talking about.
What President Obama did by raising.
Public spending as a percentage of GDP to 24%.
That was a political judgment but that was not a political consensus the Republicans did not tried not to participate -- over the last three years I think under.
Mitt Romney.
A concerted effort will be made to push that back and I think that that will happen as well at the state and the local level for sure.
-- during a time but just a last quick question.
Who's the bigger block.
If you will the public or private -- in this election and end.
What does -- tell you about the the likelihood of a victory for either side in this race.
Well as we know the American public is pretty well divided -- -- between Republicans and Democrats I think that's true and I certainly there are a lot of people out there were making a living in the public sector and should be you know there by definition part of the public economy.
But I think it's up to Mitt Romney to try to help people understand.
That going forward for at least a generation the United States is going to be have to compete in the world to -- compete with.
Countries like Brazil China and India and really we're gonna need the private sector to lead -- to create jobs and so forth if we're gonna be able compete like that and not simply.
Going to kind of a flat glide path has.
Obviously they're doing in Western Europe right now that's pretty pretty clearly the choice and I think it.
Mitt Romney explains that the people some of those folks who work in the public economy are gonna say I'd kinda like the private economy to lead us into the future.
-- -- Wall Street Journal thank you for your time checked him out at wsj.com.
Or course in the print edition Dan thank you very much.
This has been power play on Mike Emanuel sitting in for Chris our -- tweet -- Mike Emanuel fox.
And I promise they'll get into the -- a little bit more tomorrow first stages there's a little bit.
Just getting used to the studio so -- thanks so much for watching this has been power play.
-- you wonderful day.
