Both sides closer to compromise on 'fiscal cliff'?
Rep. Peter Roskam weighs in on pathway forward
- Duration 6:03
- Date Nov 12, 2012
Rep. Peter Roskam weighs in on pathway forward
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Well new signs that Democrats or Republicans couldn't be moving toward a compromise deal well at least they're talking about it to avert.
The so called fiscal -- major tax hikes across the board spending cuts set to automatically go into effect.
In the end of the year on face the nation senior Obama advisor David Axelrod.
How both sides seem to be moving closer to a key sticking point.
Speaker Boehner seemed to suggest that he was open the closing loopholes to two real.
Tax with form.
Can you get clear by just closing loopholes or will it take -- Well look I don't want.
-- -- the discussions I think that the speaker's comments have been encouraging and obviously there are there there's money to be.
Gain by closing some of these.
Clothes and some of these loopholes and applying them to deficit reduction so I think there -- a lot of ways to skin this cat.
Illinois congressman Roscoe joins us is on the house Ways and Means Committee and he joins us live from Chicago congressman great to see -- house speaker Boehner.
That he -- oppose any increase in tax race.
And the White House said on Friday and I'll read this directly.
The president will veto any bill that includes an extension of the current tax rates.
For those earning more than 250000.
Dollars a year so congressman.
Where is the compromise.
Think the best predictor of future behavior is past behavior we've heard this language coming from the White House before we've heard.
Declarative statements coming from President Obama before and yet he extended the current race.
And back in 2010.
So I think that pathway forward is for the president to recognize look.
John Boehner is put on the table this notion of revenues and we think you can get that through growth and we can you can get through -- through threat reforming the tax code.
But Saddam -- -- -- -- a president in the White House right -- laughing here when they say now no deal on rates.
Well we've heard this we've heard he's gonna get out of Guantanamo always gonna cut the deficit and -- half you know all these sorts of things.
Our declarations by the when it comes down to it.
I think the president does sign an extension and because it's the Smart move look.
The pathway to move forward is to reform the tax code where there is such a high level of dissatisfaction.
Now the opportunity is for the president to bring people together around the dissatisfaction.
-- and come up with a new more competitive tax all right.
-- come January.
Here's what's gonna happen want to put this up on the screen for our viewers.
Million Americans will be affected an average tax hike of 3000.
500 dollars that means that 88% of the households.
We're going to be seen their taxes go -- -- now the CBO's says that'll drive us into another recession economic output will drop.
To point 5%.
And unemployment will rise to nine point 1%.
But if your party the Republican Party.
Takes it very hard line on all of this and it is labeled obstructionists.
Don't they get the blame for what could be another recession.
Look there's nobody really that should be arguing let's go over the fiscal clip now there -- some leading Democrats that leading up to the election.
Have said let's go over the fiscal cliff but to your point it will lead to a double dip recession what Republicans have done.
Is offered a pathway that says put new revenues on the table.
Let us work -- how to get them but we've also got to address the spending side so you don't get a sense of obstructionism from the point of the GOP what you get is look we recognize the results of an election that elected President Obama.
But it also elected -- house Republican majority unambiguously.
So the pathway to move forward is the speaker said.
It is mister president lead us now but let's not get into this notion that.
The only way that we can do this.
Is by raising taxes on producers and it's not helpful it doesn't close the budget gap and read this spending a lot of time in a lot of drama on it let's go to where the action -- Look there's a roughly twenty.
Point differential between what some people -- on capital gains and others on ordinary income which -- you know allows private equity and hedge fund operators.
On to pay a whole lot less than a great many other Americans and and those guys are making a lot of money so how can that be justified congressman.
Well look this whole notion of capital gains and dividends taxes is really inexplicably inextricably linked.
Pension funds and the ability.
-- moms and pops that are out there.
To have income producing small capital.
So this whole notion.
This is just for the big guys forget the big guys this is about little folks once -- -- that have.
I mean -- well what kind of -- a great many and Americans is that.
Guys do little or making millions in private equity and hedge funds they're paying the lower rate.
-- -- When it comes down to it this whole notion of raising taxes on the rich who is the rich well.
There's some Democrats that say it's a million dollars that some say it's a half a million dollars there's some say it's 250.
And all of this sense there's a great deal of ambiguity about it what we're saying is.
What you're gonna do is you're gonna raise rates if you do you'll raise rates.
On job producers on job creators and ask corporations to pass through Kennedy's.
That I represent in suburban Chicago you raise those rates at a time moving into this.
And you have.
-- pull back.
In terms of economic active right so it's time for the bumper stickers to set aside and even if you raise the rates on the rich -- only target about a 7% dent in the deficit of one point one trillion dollars in the dead of sixteen trillion so -- -- -- doesn't make a difference Peter.