Are we really heading over a fiscal cliff?

This transcript is automatically generated

This just didn't -- tumor just wants to get to work not in front of a microphone which is kind of gobbled up behind closed doors -- at least is encouraging.

The -- democratic senator says it is very -- -- -- Watson and avoid a fiscal cliff by getting.

Back to work and it it takes a lame duck congress to hammer out a way out of all of these expiring tax rates and budget cuts so be it.

To stomp -- oddly enough Republican Pennsylvania senator -- to be agrees.

Not just any deal the right DL what senator is the right deal.

For you.

Well it's certainly not the direction that does senator Schumer -- -- about on the -- Chuck Schumer is carved out a place for himself well outside the mainstream.

Arguing that.

There's no it's -- which we can lower marginal rates now that is inconsistent with what every bipartisan group has looked at in terms of addressing our around.

Our budget problem on the tax side the rational thing to do is to have a more pro growth sensible tax policy with lower marginal rates.

And to offset the lost revenue by squeezing the value of deductions and write off some loopholes in any number of ways.

That's the way to generate revenue but to keep marginal rates in fact as he has advocated to raise them above where they are now.

Can only be counterproductive for economic growth.

Now he's on about letting the -- of the bush rates expire for the very richest.

You argue that this is not the time to do that do you think I know you want to see Mitt Romney elected.

But.

If the president were reelected that.

-- he would say absolutely not to that and that a lame duck session.

Who would simply be on able to push that.

Short of maybe getting a six month extension for cooler heads on both sides are -- and address -- I -- I it's just impostor.

Both -- tell me L.

I don't know what President Obama is willing to do he wasn't willing to address reforming entitlements wasn't willing to do.

Tax reform you know he had four years.

How we would have embraced an opportunity to do fundamental tax reform the president never provided any inkling that he had any interest in that.

So I don't know after an election not I don't think he is gonna win but if you were to win.

Will you be willing to do that I suppose it's possible but I sure couldn't predict that.

You know a -- we're gonna be live in Washington and looking at -- -- you know.

Potential train wreck that develops -- the end of the year.

If you guys have but don't hammer out something is it your feeling that you will.

But that a lame duck session might take -- 36 month reprieve to hammer something out.

Or that this could be did this sort of financial Armageddon that some markets -- -- Well first draw I think we should be very -- -- -- -- on -- this fiscal cliff there -- was more than two but two big.

Discrete components that really we should think about separately I in my view one is the massive tax increases which would be devastating for our economy.

And the other hand it's relatively modest spending cuts.

Which are appropriate in magnitude but I think poorly designed in that they fall -- proportionally on our defense budget.

So I do -- it's important that we we distinguish between those things.

Under Bob that's that's the same time they're both evidence and times that's have you had -- what that's absolutely true.

Well what I'm advocating is who we re engineered the content of the spending cuts because too much falls on defense but the magnitude of the spending cuts is necessary and appropriate actually we need to come more than that.

And I think the economy would do just fine with a hundred billion dollars in spending cuts because the government is.

And much more than a hundred billion dollars to big but we need to do is avoid this huge.

500 billion dollar tax increase which is the scale roughly of the this the tax hikes if if nothing is done.

So I'm certainly hopeful that in any case will avoid that massive tax increase.

All right -- out of Florida see in person tomorrow in Kentucky in the meantime sir thank you very much.

Thanks for having male senator Pat Toomey and.

Watch Live

Are we really heading over a fiscal cliff?

Details

Clips

Powerful Politics

Obama pushing spending amid scandals

Trump's advice for dealing with Washington scandals

Mounting similarities between Benghazi and Watergate?

Rep. Bachmann demanding answers on Washington scandals

Growing pressure on Obama to get in front of latest scandals

Rep. Gowdy: Holder had 'a lot' of explaining to do

Health care law under scrutiny amid widening IRS probe

Enron whistle-blower on controversies looming in Washington

Romney donor claims unfairly targeted by IRS

Sen. McCain on Benghazi, IRS scandals

Ohio lawmaker calls IRS targeting GOP a 'crime'

Benghazi probe an effort to undermine Hillary Clinton?

Transcript

Recommended