'Fiscal cliff' pressure heating up for Obama?
Who really has more to lose in negotiations?
- Duration 6:38
- Date Nov 21, 2012
Who really has more to lose in negotiations?
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Well we hear a lot when it comes to talk of a deal on the fiscal cliff the president has all the power -- can just sit back and watch Republicans shoot themselves in their feet.
But maybe the president has more on the line than meets the high.
Our own Juan Williams on foxnews.com writing that if negotiations fail quote.
How can President Obama and his fellow Democrats ask seniors and middle class workers to accept major cuts in the -- social safety net programs.
That is the outcome they promised to stop the GOP from executing.
And how will the president explained -- small business the widely predicted economic slowdown that may result from harsh automatic cuts in government spending.
Without a deal Obama -- second term agenda beginning with the immigration reform will be lost in a -- of economic fear.
While the man who wrote -- that Juan Williams joins us now he is a Fox News political analyst.
Also Brad -- -- joins us he's a former deputy assistant to president George W.
So one you're saying that the popular notion that the president holds all the cards here in this economic negotiation.
That notion is.
Not necessarily correct.
Right John I think it's getting little attention from the press if they hidden story here everyone expects that after the election.
Republicans are on the ropes because the president was very clear about warning to raise taxes on the wealthy as part of any deal.
And the voters voted form but the fact is that he promised people.
That he would protect them and if this deal happens you're gonna see taxes go up on 980%.
Of Americans -- -- couple.
For example makes -- -- twentieth 30000 dollars they would go from receiving money under the earned income tax credit to owing.
Like 15100 dollars John.
And that's just the beginning there's unemployment they're people who have to -- we'll have to pay -- higher taxes in terms of payroll taxes on the light.
This could be a real problem for working class middle class people of the president said he was gonna look out for.
Well Brad that may explain why I've heard Republicans like John Boehner say OKMR president you won the election it's time for you to leave.
And he mostly what John we have to face reality that the American people gave this election a do over they gave the president.
A do over the house the senate we're in the same position.
We -- two months ago.
Now the American people may have given government a do over but they don't expect the status quo.
They want decisions to be made in a bipartisan manner which means compromise Republicans are certainly willing to meet the president halfway but he is the leader of our country.
It's up to him.
To propose a plan it's up to him to lead negotiations.
And it's up to him to coalesce a deal.
A deal can be made and all parties have to come together in good faith.
We have to give up some revenue they have to give up some spending and at the end of the day -- all parties are dissatisfied with a deal that's probably a very good deal.
He can't sell -- are you hearing any whispers in Washington yet wanna -- what kind of shape his deal might take.
-- I think it's pretty clear right now -- they're gonna do something of a bridge that will get us past the end of the year past the fiscal cliff.
The open themselves to complaints that they're kicking the can down the road.
But what they want to do is have longer term negotiations about the big cuts and guess what Brad was talking about potential increases.
Or concessions from the Republican side in terms attacks actual tax revenue but that's gonna take a long time they're not gonna get it done in the the approximately two weeks they have right now before the start of the year in the fiscal -- so they will make some deals about extending the tax cuts in exchange for.
Potentially closing some loopholes and and -- the the problem the president has is not necessarily with Republicans you say.
That he may get more pressure from his left them from Iraq.
Well look at who he's been meeting with John he's been meeting with people like you know the unions he's been meeting with.
People are and some of the liberal groups that have come in the -- -- duck -- -- could -- very clear to me he doesn't have another election coming.
But they don't want him to sell them out.
In order to get a deal and just avoid their fiscal cliff he wants them to put pressure on Republicans but the pressure at the moment is coming.
From the left on the president and again I don't think it's getting much attention from the press.
But the president does any thing that they don't like they're gonna beat some really angry people who voted for him.
Who feel -- -- you know what.
He has not lived up to his promise to make a deal that somehow keeps those tax increases from impacting as I said 90% of.
Americans have -- and that the president you know he campaigns saying let's let's make the wealthy paid what he called their fair share so if all of those couples.
Who were making -- two -- -- 250000 dollars a year or more in and a place like New York City you know -- you decidedly do not feel rich if you're in that bracket.
They can expect to pay more taxes I would guess under this new system should the Republicans say OK you know here's -- Barack Obama tax increase.
Well John it all.
Depends what the definition of rich -- is and -- I happen to believe that 250000 dollars.
Or less is not rich in America I believe that threshold will be increased.
If the Democrats want to increase revenue.
Perhaps it'll come in the higher income brackets but -- not to be discounted the party John but in the first quarter of next year we also have another fiscal clip.
And that's raising the national debt ceiling.
So we better get past this crisis because another crisis is looming right on the horizon -- So -- one.
Are cooler heads going to prevail I mean it there has been so much acrimony in Washington between.
You know congressional Republicans and and the the White House.
The White House.
You know not not pushing senator Reid to get a budget out of the senate is is they're going to be some kind of a two -- moment here.
I think there is -- and you know I'm not ones I've -- you -- always be optimistic about politicians.
What I just read the tea leaves and you -- -- Nancy Pelosi.
Or to Harry Reid the majority leader in the senate both have -- -- said there's going to be a deal well before Christmas.
Why because I think they know -- -- -- -- this pressure pressure from seniors pressure from low income people on the left.
They want them to make a deal and again I don't think it's getting attention but that's the reality the president's.
Under pressure here it is fascinating to me that so little seem to get done over the last couple years and yet the voters sent pretty much the same cast of characters back to Washington.
To get -- all.
Not on again I guess I don't know well that's very optimistic who want William Bradley -- yes.
Happy Thanksgiving to you both and happy Thanksgiving optimism is what it blessings thank you.