'Fiscal cliff' meeting just for show?
President Obama meets with top congressional leaders
- Duration 4:50
- Date Nov 16, 2012
President Obama meets with top congressional leaders
Also in this playlist...
This transcript is automatically generated
That's a breaking news -- the White House now crucial negotiations are about to begin there are President Obama tell congressional leaders were trying to hammer out a plan to avoid the fiscal cliff and the stakes could not be higher frankly.
If they do not strike a deal about 600 billion dollars in tax increases.
And deep spending cuts kick in at the end of December which could affect every American in this country.
Art -- former.
-- advisor to president Ronald Reagan with me today American morning to you and welcome back.
Good morning don't worry it was -- -- fine thank you and thank you for your time and just looking at some of the up.
Some of the issues you -- our producers earlier today you say this is really serious and you underscore that yes and I think everybody considers it serious but you are to the White House.
You know you were in on these meetings is this really -- form for negotiation.
Is -- you a little talk into what happens.
What's a little talking to -- command when their -- their positions.
And then they'll be some sort testing of the waters and then you'll see how the responses are afterwards and then you'll see the aggressive play.
And then you'll see which side starts giving him and will be following that the next couple -- weeks but.
Obama has made it very clear he believes he has a mandate but he really doesn't he only got barely over 50% of the vote.
Reagan got 59% of the vote in his second term mix in the -- won everything except Massachusetts -- You know this is by no means a mandate and the Republicans still remember it a little more specific on my question -- -- these negotiations that are taking place or they -- sharing ideas.
Or is this just to -- frankly.
Well I think there's lot of photo op as well a lot of posturing.
But the negotiations don't take place in these meetings to be honest with you they take place among staffers.
And then with signals going back and forth.
The indirect way of negotiation -- with the way it's really done.
And it's not done in a grand meeting where they actually start new ideas that.
That's that is a photo op and that fencing OK if you get -- in that article this morning the Wall Street Journal talking about many states that are getting ready to set aside money in the looking for programs to cut.
In the event that you know -- that we reached a cliff when we go down over what is your expectation that happens here.
Well I think we've already reached the -- the real problem is bill is people of accelerated income out of 2013 and 2012.
So that way over State's 2012 growth rate GDP.
And that's going to be reversed just like was in 20102000.
Elevenths even if they reach the court.
So I think you're going to see a very bad 2013.
Economy if they don't reach an accord if they raise those highest rates.
You're gonna see secular growth in the US declining as well which will be a double whammy it'll be very unpleasant ugly year 2013.
If Obama gets his way.
It really will be what what he said the other day is that he's open a compromise.
Now -- you're expecting a compromise or is your expectation.
That the tax rates increase.
Well I think the tax rates are going to increase I don't think he is going to compromise and that.
Boy -- hope he does because it really would be harmful for the country but banality -- are in the business John Boehner have the votes in the house to get approval for that.
I think John Boehner has a lot of power in the house and I think he's a very fine leader of the house but John Boehner is polled by two groups one he doesn't want to be.
An obstructionist and not allow the tax cuts for the lower groups to go through.
And yet he doesn't want to allow the tax increases of the upper groups to go through so you know he's being pulled on that side and then by his own party.
What what I hope is that the vast majority of the Republicans hold true.
And if some of the Republicans peel off I would -- that would be fine if they push through Obama's bill.
But I do not want to see them punished but I.
The Republicans need to have this position.
And the rest of 2013 when the economy goes in the garbage dump let me ask you -- Republicans are right 22 more quick questions on this -- -- congressional leaders speak.
What sort of code -- should we be listening for today.
Well I don't know what they would say to each other.
But on the outside the you know using the word rates and revenues and that type of stuff are code words.
Especially coming from the president.
-- we talked about raising revenues and does not insist on being rates.
You know there is a good compromise possible.
If he forces it to be rates I think there's not a lot of compromise.
And the Republicans will have to concede.
Taken over the -- I've got to I don't know how they would do -- are you buying into this uncertainty run for the hills.
I've run for the hills -- I'd be adversely.
A lot of protection.
Yes I undid that all right art Tucker and -- oddly enough that was Kentucky talk for me.
Wildcats I love it felt like it again thank you -- Like bill.