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Bob Cusack breaks down the fiscal cliff and explains what it means for the average American.
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Right before winter break we talked.
About the fiscal cliff it's something you're probably reading a lot about and it's something that you're hearing a lot about how President Obama and congress will work together.
And agreed on a nine year one point two trillion dollar deficit reduction program.
But what exactly does that mean -- and how is it affecting.
The average American men and all of us let's bring in Bob Cusack he's the managing editor.
Of the hill report he's in DC.
Hey they're good to see you Bob Casey area.
-- -- well thanks all right break down the fiscal cliff.
For us for the layperson because here I know they just didn't -- dinner conversations that you know with friends and whatnot a lot of folks are confusing they don't really know what it is exactly.
Well that the biggest thing that's gonna affect everybody unless congress acts of congress does nothing.
-- everybody's tax rates will go off on January 1 so that is.
And that and then we're talking about all the bush era tax rates would go away so you go back to Clinton -- tax rates which -- some liberals actually prefer.
And so.
Unless congress acts congress must do something in order for that not to happen now there are other issues as well Medicare.
A reimbursements for physicians would go would go down 30% -- it leads some doctors.
To basically leave the program because they're not getting paid enough so then you have sequestration.
On the defense side.
As well as other social programs that didn't -- massive cuts to the Pentagon and other social programs.
That is something that lawmakers want to avoid as well so they have all these things that they have to deal with and also the death tax that is also something that they're gonna have to be dealing with that.
That would go.
Sky rocketing up unless congress does something so.
All these things there's so much uncertainty that of course you don't Casey they had -- not very good at doing multiple things -- -- -- one thing that time.
They've got to -- all -- all -- They're great multi tasker is a hundred positions.
That's why everyone is so scared.
And also if there is going to be a deal is it gonna.
Gonna be done before.
It's Christmas shopping goes on so that could really just -- consumer confidence is so.
So much to do instantly such a short amount -- congress is back this week.
There's not going to be any deal this week to be leverage on both sides and then of course we don't come back in December and there's only you know a few weeks in December to get this thing done.
All right Bob well first I -- point -- ultra right one on our Chad is saying no new taxes for anyone if it is the best they can do let it just fall off the cliff.
Of course -- when you hear anything about increase in taxes.
It's something that that that really startled many Americans because they -- ready feel like we're paying a lot of taxes as is.
I'm -- talk about you know making some strides in terms of you know creating jobs and whatnot and then you have this this looming crisis if you will.
It's awfully scary I want to move over Bob to talk a little bit about Petraeus of course that's the big story that we're following there's a piece on your web site.
My house homeland security -- chairman.
Representative Peter King says that he still has lingering questions.
But that what basically the FBI knew and and if the FBI -- holds the Obama administration.
About.
What was going on with Petraeus is a fair.
Yeah Peter King not happy not happy that the FBI has not said.
Why it didn't -- the administration that it was basically tailing the SE IAEA chief and Hawaii the FBI did not.
Tell congress I mean that that's a big question -- that FBI director Robert Mueller.
And perhaps attorney general Eric Holder they're gonna have to answer that question.
They obviously I mean so obviously like to give anything congress they leak it but.
But they regularly brief members of the house and Senate Intelligence Committees.
-- -- senator Dianne Feinstein the chairwoman of the senate Intel committee she didn't know about this and actually her first statement out of the gate.
Late last week when the Petraeus news was breaking was saying.
She said that she had hoped that the president didn't accept his resignation because she didn't know.
Much about all of this that and obviously now she's gonna investigate -- so.
So the FBI obviously was going after Petraeus but now some people -- -- -- after the FBI.
Bob how do you think that's going to unfold later this week when Petraeus himself was supposed to testify.
About the attack and been Ghazi.
And you know some are saying that that he may still be at that hearing.
Him what do you think we're gonna see when that unfolds later this week.
I don't know if Petraeus is gonna testify that this week but but I am very confident that he's going to be testifying at some point.
-- gallery on Greta Van Susteren show was suggesting that they could subpoena him.
One way the other.
David Petraeus is going to be testifying.
Before congress and that's also what Peter King.
With saint today so it may not happen this week and made maybe in a week or two but one way the other Petraeus is it's going to be.
Talking mid to members about what he's what he thought about being Ghazi -- -- -- obviously have to answer some questions about this whole affair thing.
Bob another question that I want to ask you we need to talk about attorney general Eric Holder because this is and absolutely fascinating piece.
From your site you know there was some speculation.
He made you may have teased the notion last week that he may stepped down as the attorney general of the United States.
Later this year by the end of this year.
What do you make of that I mean we are talking about a man who has been mired in controversy.
House real Republicans -- a vote placing him in.
Contempt of congress more than a hundred lawmakers were asking for his resignation over the -- fast and furious.
Scandal the botched gun running operation and just how much his office knew what do you make of it if attorney general Eric Holder does decide to step down.
And Obama has to find a replacement.
It's gonna be tough confirmation process.
And -- I think Eric Holder at some point this year is probably gonna step aside it's been along for years for him as you mentioned.
So much controversy.
At the department of justice and that vote.
He does not have good relationships with Republicans many of them.
As you mentioned over a hundred want him to step aside but if if you do nominate somebody -- you obviously you'd have to.
It's going to be difficult to get somebody confirmed because it and a lot of tough questions on voter ID -- as fast and furious this FBI investigation.
And so that's -- some of the -- -- are actually senators senator Sheldon Whitehouse Democrat from Rhode Island has been mentioned.
Even Claire McCaskill who just want.
Re election has been -- I don't think she would get it also governor.
Massachusetts Deval Patrick is a contender but.
But that would be -- very contentious.
Confirmation process but at the same time.
Republicans.
What would probably welcome that because they want him out they just want somebody new as long as lead the successor wasn't too controversial but I.
I think Eric holders had enough after this four years and maybe he will stand for a little bit longer but but I don't think they'll make it to the end of 2013.
-- reporter that wrote this article talked to represented paralyzed of course the chairman of the house and over -- oversight and Government Reform Committee who's obviously been very very.
Vocal and very critical of of attorney general holder and he's he -- -- reporter.
That -- the general holder's departure would not end the committee's investigation.
Into the fast and furious.
It's right -- is not gonna let this go they -- there have been more hearings on this.
In -- B and CC if if -- -- that gets involved in net and the Petraeus and and ask questions of holder on that.
But there's no doubt about the fast and furious investigation is is still ongoing and -- they they still continue to claim that.
That the administration has not been straight with them.
So there's no doubt about that the house remembers is still Republican controlled by Republicans so they get it.
Schedule that the hearings in the house and they'll be more on this.
Bob Cusack managing editor of the hill joining us from DC this afternoon Bob thanks for your time good to see you.
Thanks --
