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Six weeks ago now before lawmakers reach a deal or the tax hikes in the spending cuts go into effect in yesterday on our program.
I talk to a leading Republican Kevin McCarthy part of Republican leadership and I asked him about recent comments from the House Minority Leader Nancy Pelosi.
Indicating that she'd insist on tax hikes for the wealthy to reach a deal.
He seemed to suggest McCarthy did that that is not -- line with what he is hearing from President Obama.
Well the president isn't saying.
Remember remember this that then Nancy said last may that it had to be a tax increase on those a million and more -- She keeps changing the game plan that can't be the case if the president just went and change the tax rates -- -- pace for eight days where do we go from there.
The president also says that he wants a balanced approach to -- have cuts we haven't heard of where his cuts are so what is it a conflicting -- Bottom line is this of lawmakers don't reach a deal a 158 million Americans will be affected.
On average households will see their taxes go up -- 3500.
In all some 88% of households will see their taxes increase.
What about all the -- in terrorist daily news columnist also 20% of the five right here on the Fox News show where's your other half.
Well I -- you if you watched the five yesterday you saw that Bob guzzle a milk shake -- don't -- twinkies and any ran off the sad because he became ill.
And -- flood -- in the five years that you and Bob and I and mark have been doing this segment.
Bob didn't show this morning.
Everyone's looking for I think it's understandable I think it's.
Now we got -- -- tell -- while playing OK playing the role of Bob Beckel will be Martha MacCallum.
Actually I -- what I would say -- you -- I'm sure you could read all the time but the whole deal on what Kevin McCarthy he was threading the needle carefully during that interview yesterday didn't slit his bottom line was that the president is not saying what Nancy Pelosi is today.
So what does that leave us.
Well I think Nancy Pelosi represents some more liberal wing and I think the president's.
Is closer to coming to a deal with John Boehner and again if Bob were here he would say that -- deals artists and done.
And I think that deal has to do with revenue I think that's where Republicans.
Bill have been.
Apprehensive to come to the table eliminating deductions deductions and I think that there actually.
May have a deal on that will that be an enormous package before the end of the year probably not out be -- temporary package.
But I think the president has blinked on tax increases before I think he's likely to do it again.
I just don't think there's the political appetite within a Democratic Caucus particularly bill in the senate.
Where Harry Reid has a number of moderate Democrats they're up for reelection in 2014.
To actually pass.
Big so yeah well you would argue like McCarthy argued that the white the president is more willing do a big deal a big grand bargain.
More so than Democrats in the house or maybe even Democrats in the senate.
I -- the problem and we don't know how this is gonna turn out is unions are pulling the president far to the left.
-- if the president -- to move on significant tax increases Republicans would make him pay with sweeping changes to entitlement reforms.
And -- I'll tell you that's just not what the unions want.
Mean they would want my accident horrible what -- what I heard from McCarthy is that you know you have to do overall tax reform.
Look what I mean do you think that this president has shown the inclination to doing a big broad tax reform do you.
I think this time around I think he realizes it's the only way to find common ground I do and if you remember and his jobs plan that he tried to pass that didn't pass the senate.
There -- some elimination that were pretty controversial I ever was a charitable deduction elimination.
A lot of his -- universities and charities were very upset about this this could be on the table again now.
That hurts a lot of people in need but I do think that's the one area bill you're gonna see them come together it's on revenue upon -- an agreement on deductions -- -- Got every -- -- the deal will likely be all about revenue but here's what I I think the bigger point is this that everybody's saying.
They can't tax enough.
-- to fill that deep hole that we dug for ourselves right.
So even if they got tax increases on the wealthy it would fund the government for what six days.
And that's the point Republicans are making this have to be broader and what John Boehner did was very very shrewd.
He said to the president you've been largely silent on this you go first we're waiting for your -- -- And that's exactly what he's done he said -- right.
You wanna make spending cuts you're open to revenue and deduction eliminations and you tell last Mr.
President what -- like.
Well you know what Boehner says he said they were that close to do it last time and the president losses nerve in his.
But now both men are faced with the same possibility.
Of crossing the threshold of history.
If they want to lock arms were about to see whether that you were not -- and -- most of.
Fortunate thing now is that -- so much uncertainty for businesses and individuals the Wall Street Journal had a report out yesterday saying.
There's so much uncertainty that we could slip into another recession over this distillate that they can't.
Come to some kind of agreement so let's hope they can actually do their jobs for once in these you go find back Alina you know let it not my turn to babysit has -- Thomas.
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