Obama's approach to avoiding the 'fiscal cliff'
All-Star panel weighs in
- Duration 6:53
- Date Nov 14, 2012
All-Star panel weighs in
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The top 2%.
What I'm not going to do is to.
Extend -- further.
But tax cuts for folks who don't need it which would cost.
Close to a trillion dollars and it's very difficult -- let's see how you make up.
That trillion dollars if we're serious about deficit reduction just by closing loopholes and deductions.
President Obama pushing back today against Republican claims that Washington can raise enough revenue.
-- not raising tax -- so we're back now with the panel AB the president did.
Make it clear today that he is not gonna extend the bush tax cuts he's sad as you heard there that that tax reform closing loopholes doesn't gets enough revenue.
So given the fact that he's saying I'm going to raise rates.
And the Republicans -- saying we don't want us he writes -- where does that leave the negotiations of the fiscal plus.
Well the negotiations haven't really begun and they won't really be in an.
Speaking to the microphones there's an inside game and outside game that both parties are playing -- Obama since -- game.
He's telling labor -- Franzen left he's not gonna -- And assuring them that he is this kind of -- a big fight.
The same time what I heard in that press conference on in another statement was actually openness to creative ways of producing more revenue.
That he is open and he's not gonna close down discussions as long as they end up taxing the wealthy.
And the middle class don't get hit so he's trying to not double down on rates as the as the Republicans are running -- and we just can't raise rates so.
I do believe that there is some willingness for him to be open as long as he's looking at a good enough number and a good enough.
Sources of revenue from the wealthy.
That that is being said we're looking obviously huge fight because Republicans are really torn up about this what is an increase in taxes mean what -- increased revenues mean.
And I don't literally -- -- until December whether or not they are going to offer up.
The deductions and he's -- looking for.
And and Charles -- we have these big headlines of the papers saying now that the president.
Isn't willing -- -- isn't demanding 800 billion dollars which is what back in August of 2011.
When he was having those big debt talks.
Would John Boehner -- somebody was double that he wants one point six trillion dollars in in revenue increases so.
Again he's -- you know he's got an election and he sounds like he's gonna try to push but he sees as his advantage of the republic.
Not -- at one point six trillion that's an opening bid but you're right he holds the cards now he holds all the cards because.
That's the fiscal cliff the way it changes policy is all together in a liberal direction.
Raises tax rates cuts defense that's how it do you also -- social spending a little bit but primary -- leaves entitlements and these entitlements alone.
So in a way he wins and we even go over the cliff and the trump card he holds now is the low standing of the Republican congress.
In political opinion there's a new poll out I think you guys showed earlier -- post -- -- 53% of people say if we go over the fiscal cliff will blame the Republicans.
So really Obama it's it it -- the ball is in the republicans' court they may not like that.
But I think that's the truth and Obama.
Is in the -- seat right ahead Charles.
-- -- I'd love you to react to that and I also what would -- to react to the president's statement.
Today that he wants a big deal he wants a comprehensive deal and he was.
I thought quite open about the idea that he's willing to put entitlements and entitlement reform on the table.
But he said that in the past he's never propose anything.
Perhaps -- do it I don't know but I do think I disagree with what chuck said about.
Obama holding all the cards politically perhaps.
But remember Obama's not running again so why.
If it's -- can -- help him if he's popularity increases and he directs the American economy.
By setting into a recession by going over the cliff.
The car that the Republicans hold is that it is terrible policy.
To do work what happened.
-- unless Obama -- somewhat.
In his demand and higher rates because -- -- gonna have a recession.
We're gonna have a huge amount of defense cuts which -- on Defense Secretary has said it would destroy these video of the US military.
Probably cause a resignation on principle.
Send us into a recession and not solve our entitlement problem we have the worst American economy entitlements out of control.
-- cuts in in discretionary spending.
In in defense and high taxes with a stalled economy is that how he wants to have a second term he's not running again the popularity numbers are irrelevant.
He knows he goes over a cliff he's going to have the worst.
Second German name you know in the last fifty years so I think big cars -- held equally and not where they'd be I heard him say.
Did he was open to other ways of raising revenues from new ideas he called it.
And I think there is clearly a compromise out there.
With -- rates -- -- not raise it or perhaps you've redefined what the rich always say a million dollars and up to Chuck Schumer idea and you get a compromise.
Well that's a bit of optimism from Charles is so let me ask -- -- where do you think that negotiations stand I think Charles and -- be able dreaming and look this the real Barack Obama.
He wants to raise taxes on the wealthy doubled down on him I mean he says he wants to compromise why do you.
-- devote your entire opening statement to a using the same stuff he said in the campaign.
Not advocating this tax on the wealthy it is horrible for the economy.
It's not half of the fiscal cliff anyway the tax -- it's about.
-- mean that the entire clip on taxes tax would go up something like.
380 billion even if you exempt from the middle class so called the 98%.
From not unsafe.
Having a tax increase you have all all these other things -- Social Security tax holiday is going to be gone and so on.
So -- the president really wants to do this the one argued he was asked well look you didn't agree to -- -- 2010 why now he's all of the economy.
Moussaoui back in 2010 I couldn't do it the economy is weaker now growth has slowed in 2011 -- 2012.
What this is what.
His second term what he wants to deal.
Not I don't think he cares about the economy he wants to raise taxes on the wealthy.
Well do it but as Charles points out and we've got ten seconds yeah is he really wanted to go over the cliff to do that.
Yes I think so.
And have a recession.
Well -- probably one anyway with all the other taxes that are going forward yeah all right got nothing but we're gonna leave it there again somebody to talk about thank you panel.