Talks of compromise ahead of 'fiscal cliff'
All-Star panel weighs in
- Duration 5:17
- Date Nov 9, 2012
All-Star panel weighs in
Also in this playlist...
This transcript is automatically generated
I've invited leaders of both parties to the White House next week.
So we can start to build consensus around the challenges that we can only solve together I'm hopeful.
That productive conversations can be -- soon.
So the freedom forge an agreement that can pass the congress for serious about reducing the deficit.
We have to combined spending cuts -- revenue up.
And that means asking the wealthiest Americans to pay a little more in taxes raising tax rates.
Will slow down our ability to create the jobs that are -- says they want I'm open to compromise.
I'm open to new ideas.
I'm committed to solving our fiscal challenge us.
But I refuse to accept any approach that isn't balanced.
President and house speaker back and forth on the issue of taxes as we stare at this fiscal cliff at the end of the year back with the panel Charles.
But I think Jake if if you listen to the the nuances in their language it looks as if they're dancing around some compromise.
Danish dug -- -- offering -- peace pipe at the beginning right away after the election.
He says I'm willing to raise revenues but not rates.
So what he means is eliminate deductions on the wealthy if you're right.
Which is a matter of fairness and also with -- raise revenue and cut the deficit.
Republicans agree on that I think as a matter of tax reform.
The president has insisted that the rates have to go up for the top 2%.
But when he claims it is going to be you know a wedge into -- -- -- it's ridiculous.
The CBO estimates who -- eighty billion dollars a year we have a deficit of one point one trillion.
Every -- -- which would reduce our annual deficit from one point one trillion.
To one point 02 trillion which is seven cents on the dollar.
For Obama it's a matter of symbolism as a kind of a punitive this -- it's a way of -- and stick it to the rich.
However if you listen to a statement as he said there he talked about revenues he stayed away from rate.
So he says there's the central question during the election debated over and over again and the White House says that -- Vito.
Anything that that extends the bush -- tax cuts for the top 2% of well.
-- but he says that but he also says I'm not wedded to every detail.
And I'm willing to how I want is to raise revenue so would switch half of that do you believe.
He's like in the Cuban missile crisis the -- received two cables from a cruise ship.
One aggressive in the other conciliatory and the advice get a big meeting about what to do have one -- -- ignore the aggressive one.
And they -- -- conciliatory one and it worked out so to avoid a nuclear war in Washington and I say addressed the conciliatory suggestion.
Revenues and try to work on deductions eliminated.
Well Charles as usual there is talking sense even more sense than usual I would say because -- and I agree on this one.
Yes they are dancing around a compromise and the key to it is this word rates.
John Boehner keeps coming don't raise tax rates.
And little homework today there's a study out by the Tax Policy Center that -- if you hold the top rate you don't raise it at thirty thought.
At 50000 a year.
He raised 750.
Billion dollars over ten years conveniently very much like the number John Boehner has already -- sort of agreed to.
In the previous negotiations.
Are also hearing people like Lindsey Graham about Corcoran -- Republican members saying hey guys.
We can cut a deal -- key though the key and this might end up being a problem for Republicans move that way on taxes what will the president deliver on entitlements because that is.
-- bottom line that he can't move off of he's got to get something real on spending because that is what.
Republicans never song.
On paper the last negotiation.
-- and it's why in the house Republicans are still skeptical that they're gonna see anything significant about that now and that they're gonna see it.
In the short term I think what's what's more likely as you'll see some kind of -- short term compromise and then they'll revisit this broader tax reform.
Sometime down the line.
You know what Republicans are trying to get talked a couple of the Republican House leaders yesterday with what they're trying to -- -- get in front of what they see as.
Inevitable and they want to do everything they can to avoid this increasing -- Tax rates which states he's punitive which they fought all along and which is a principal of the Republican Party to oppose increases -- tax rates.
So they're trying to get ahead of that by being open and signaling publicly celebrating the fact that they're open to additional revenues if they come.
Without increases in rates.
I don't know if it'll end up in a compromise but I think they're gonna insist on seeing something more from the white house on entitlements.
The first back and forth though promising.
It is because I think each side could have just -- the ground.
And gone into negotiations.
Without having conceded anything even rhetorically.
Boehner clearly has speak about revenues Obama has by implying that he could drop the -- issue and make -- revenues.
We're not sure if he means it but I think it's a beginning -- something.
Because I think every side understands that if you go over this if cliff everybody will be tarnished really severely.