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Tax plan debate continues to rage on

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    Bush-era tax rate extended for another year but debate over a tax deal and reform rages on

  • Duration 7:26
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This is blinking if Republicans and Democrats remain far far far part of what to do but the bush era tax cuts the tax -- -- other set to expire December 31 and yesterday the Republican led house which some Democrats -- them.

Voted to extend the cuts for every one.

But senate Democrats only want to extend them for families earning less than 250000 dollars a year.

-- we spoke with house majority leader Eric Cantor earlier tonight.

Best -- their credit -- and see you.

Okay the house has passed its bill having to do it taxes because over to the senate I take -- down.

Arrival there.

Well I think that that prediction we'll probably be about wine and you know grew out of the reality is if jobs.

Is the priority around here if that's where the country really is focused.

There are two very different approaches to trying to go after that go.

One on a part of president Harry Reid.

Would say that you raise taxes and therefore somehow it will benefit all of us and you'll see economic growth happen.

Instead if you look at the house Republican approach which actually was supported by nineteen Democrats and in the house.

Very sad and agreed with us that now is not the time to raise taxes.

On small businesses if you want to create jobs since -- the job engine of the country.

When I look at these numbers -- what the president's proposed is raising taxes with the -- about eight days of the federal government which leads 357 days we stuff to deal with.

On the one hand that's hardly seems like a lot to fight about -- -- got you know we've got huge economic problems just eight days maybe it is maybe it isn't.

But -- but on the other hand out.

You know is it going to make a difference to be -- be spoken people that people stop.

Hiring people because of this is -- really gonna make a profound impact on and the wealthy.

-- commentary of you folks are represented Richmond Virginia the small business people tell me absolutely you raise my taxes it's just gonna make -- business of my business harder it'll make the business of job creation heart.

There's any question and in fact there was an independent study that came out a couple weeks ago.

Which said that if you raise taxes the way the president and Harry Reid and the Democrats in the senate want to.

It's gonna cost the -- 700000 jobs.

And that's really were facing and you make a good point I mean for -- Or is it all political now we're really trying to do something that helps the economy -- that helps the engine of jobs which are small business people.

And I suppose to some extent in the billionaires it's hard have sympathy for the -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Which is a marriage penalty brought if you if you live would someone it's 400000 dollars in income in your in your houses and handed him very -- to fifties as a marriage penalty.

So there's a -- proposal and that if you look at that section of the population.

50% of those taxpayers get at least a quarter of their income from small businesses the past humanities -- Policies and some passes -- the job creators.

And again a hard -- income -- more jobs they create.

So that's probably say it's really counter intuitive.

Who would say that that's good policy if the priority is jobs and that's why I think that the president may -- -- for jobs.

But clearly his policies have not indicated such.

And this latest attempt to.

Really play politics.

I think is making job creation a lot more difficult.

Sequestration.

Where do you stand on the well the city's sequestration is guys really two elements as a policy element is a jobs element.

I mean I think many of us are very concerned with.

-- fact that even the Defense Secretary.

I'm mr.

Panetta has said this is going to be incredibly damaging to the Pentagon the ability to affect its mission.

On the jobs front and I come from Virginia as you know there's going to be a terrific impact and negative impact.

In terms of jobs in our communities.

Are Virginia -- has historically hasn't heard as -- -- huge role in the defense of this country.

And we're gonna see tremendous job losses.

Because you'll see the Pentagon have to pull back in a way that's gonna affect our mission.

To defend this country so what the house has done is we've said we don't want that.

President's defense cuts to hit so what we've offered up is alternatives.

Ways to cut the budget.

That will look to pay it will make a responsible.

Move.

To avoid this hit the Pentagon the presence.

-- let me tell us that I think might be the collective.

Frustration of many Americans.

Is -- this -- problem began last August and the whole idea was it if that there are super committee was created had to make a decision by November if they didn't these automatic cuts the sequestration would go into effect.

Now nothing was done essentially least appears -- people since they were not able to reach a decision.

For the last -- -- separate months now we're back in the crisis look.

What can the American people gain by that deal that was cut a year ago to -- on the road.

Well what what we ended up doing is tying.

Two.

A debt ceiling increase time to move to make it even worse from fiscal standpoint not to have to burden the next generation and Harris.

We tied to that move.

A requirement that -- got to force priorities you have to force cots because you can't keep -- in this whole vapor that's what we did.

But setting policy that was brand new.

Once and for all we said you can't keep borrowing money day in the hole deeper with out trying to fix the problem.

Because if you keep doing it all you're gonna do is keep raising taxes.

And you're gonna keep asking people to put their money into the problem that you never resolved.

And in that way you're not -- -- economic growth you won't see more jobs you won't see folks getting a better so more confidence about themselves that the future will be better.

Governor -- I was just in Israel -- do you see any profound differences between governor Romney is few you have Israel and Iran.

And I'm president promised.

There's no question about how a lot of disappointment.

Looking at this administration's policy and is leadership or lack there -- issues affecting US interest in the Middle East.

I've traveled to of the gulf region visited some of our Arab allies.

This year as well as having recently been -- Israel last year.

And the message I received from both it is they're asking where is America where is the leadership that we're counting on.

And I think that what you saw with governor Romney's trip as you know governor Romney went -- there to listen.

But he also I think made a strong statement to say that America's role is to lead and our allies count on us.

To lead in terms of our fight for freedom and terms of the promotion of American interest worldwide.

And if you look at any of the issues going on whether it's Iran or Syria -- proxies in Hezbollah and Hamas.

I think that you clearly gonna see a lot stronger leadership and clarity coming out of Iran administration and you've seen in the Obama administration.

-- nice.

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