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Political gridlock looming over 'fiscal cliff'

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    Effort to reach bipartisan deal

  • Duration 4:40
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Congress returns for a lame duck session.

Either going to be facing a long standing problem preventing our nation's economy from going over that so called fiscal cliff.

It appears they'll also be facing the same longstanding political gridlock.

I just listen to house speaker John Boehner and also President Obama over the weekend.

Instead of raising tax rates on the American people except in the damage -- -- -- work -- let's start to actually solve the problem.

-- let's focus on tax reform the clothes a special interest loopholes and -- tax rates now we need a majority in congress to less.

And they should start by making short taxes don't go up on the 98% of Americans making under 250000 miles a year starting January 1.

This is something we all agree out.

Yeah again we've been here before Bob Cusack is managing editor of the -- in -- just you and me Bob and Lou we've been here before but we've talked about this quite a -- And yes the edge could -- leverage in these negotiations.

For the moment at present Obama has leverage without a doubt because he won a second term that was a lot about taxes Mitt Romney and -- Obama clashed on taxes.

While Obama came out.

The winner and also a senate Democrats expanded their majority so.

John Boehner -- -- a very difficult spot we've seen some movement that the Republicans are willing to get to put some tax revenue on a but it has Boehner said.

Over the weekend he's not gonna raise tax rates and an Obama is insisting on that so.

I don't think you gonna get to see any type of deal this week when congress comes back to be more leverage games.

I -- I don't probably deep into December.

Raising the question are we gonna get a deal.

What do you think.

I think eventually they are gonna get a deal but I I think it'll probably be.

A two step process where they get some type of down payment on tax reform.

And then I do something larger in the new year with the new congress.

Being sworn in so.

But how do you do that how do you have one step -- I think you've got to have the parameters of what you gonna do next year.

Now a -- does not won a huge deal in the lame duck he says that the new congress should be in session when you gonna do this the newly elected people so.

It's going to be very difficult giving -- express as well Bob we look it was best for the American people -- the voters that put these folks in office is it best to get a little bit of a temporary agreement and then -- the new people battle it out means that ultimately better for rats or not.

I.

I think so I mean I think he eat when you have.

An election and you have elected people that are coming into congress are not here yet.

You have to wait until they are seated and I think that that's what John Boehner said in 2010 when when Republicans won back the house and that's what he's saying now but the but the question as -- who's going to be in the rule is -- going to be John Boehner and present Obama striking this deal.

What about Harry what about Nancy Pelosi what about Mitch McConnell remember in the summer of 2011 it was basically -- and Obama.

This time there there might be a few more lawmakers who want.

In on this deal.

The present is -- -- be -- -- down some of the leaders of the house and -- a little later on this week so we'll see what comes out of -- in the meantime let's talk a little bit about style vs substance.

As -- -- we talked about a lot with the election I was reading sand.

Add comments from the CEO of the eighteen tee today also this senior economist from bank of Americans say listen if -- reach an agreement great.

But between now and then if the disagreements look really -- really bad that's going to really damaged this economy because it just shatters any consumer confidence.

I have -- going into the holiday season -- so ultimately they could find a solution the damage will already be done.

Think about that Bob what do you think about the style to all of this is well.

Well that that's why and I agree that that they're gonna have to get -- probably a deal by mid December because if you go right up until the holidays it's gonna shatter.

A consumer confidence in -- remember the stock market's gonna play a big role here we saw that.

In the bail out 2008 when the first bill failed on the house floor the stock market -- if if that happens that's gonna move.

Members closer to a deal but you -- remember there's a lot of Tea Party lawmakers and they're not gonna like raising taxes on anybody so that's that's the tough part for Boehner is that yes had to deal and then sell it.

To his conference that's going to be the challenging aspect of of this I mean Boehner has the toughest job in Washington you -- don't do it.

I think he can I think it's a trust.

A lot of house Republicans they like him.

But you know it's gonna have to be different this time around -- you know over the last couple years.

That the House Republican Conference is kind of led Boehner Boehner got to leave them and say listen we have to get a deal or the stock market's gonna crash.

Well we'll see you actually comes in this of -- mention again that meeting with the president John Boehner and I'm Mitch McConnell and all the other folks have been and invited to the party we'll see if they can get anything done Bob thank you as always.

Thanks.

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