Signs of 'fiscal cliff' compromise?
How close are we to a deal?
- Duration 5:27
- Date Nov 26, 2012
How close are we to a deal?
Also in this playlist...
This transcript is automatically generated
-- in the White House is congress seeks a deal to keep the economy from heading over that fiscal cliff we've been talking so much about.
Welcome to the second -- happening now I'm generally I'm John Scott once again the economy edges closer to that cliff last time lawmakers punted the can down the road well now there might be enough political pressure on both sides.
To reach some kind of compromise.
House majority leader Eric Cantor telling Fox News earlier that everyone wants a deal otherwise come January 1 taxes go up for everybody.
We don't think that raising tax rates is something that's good for this economy that will help grow jobs and so what we have said is there -- ways for the federal government to -- -- more revenue if we grow this economy engaged in tax reform that's the proposal we've got on the table.
The White House today adding more pressure warning all the uncertainty could hurt consumer confidence.
Adding yet another drag on an ailing economy several high profile senators making it clear on the Sunday talk shows that taxes remain a key issue.
I'm willing to generate revenue is fair to ask my party deferred revenue on the table were below historic averages how will not raise tax rates to do it our cap deductions.
I would be very much opposed to raising tax rates.
But I do believe we can close a lot of loopholes they have to go up either real tax rates are effective tax rates there's ways of doing.
Secondly though we've got to close some significant new polls.
Brett -- is the anchor of special report -- maybe we can get an explanation from you these Republicans are talking about.
Raising revenue but not raising tax rates how they do that.
Basically they close.
Tax loopholes they put a cap on deductions.
So another words for high income earners.
Let's say the cap was 50000 dollars you can -- and deductions they don't specify what specific deductions it would be but that's the cap.
Of tax deductions you could taken.
Thereby after that point you don't get any more deductions so the amount of taxes you pay day.
Goes up now this is not -- John this is what.
Really Mitt Romney and Paul Ryan.
Were running on as they talked about it they got hammered again and again for not being specific.
On what tax deductions and loopholes we're going to close.
But this was the line for the Republican standard bearer of the candidate.
So when you hear these senators and congressman talking about that and not raising tax rates.
It's not a new.
Position it's not a backing down.
On on some stance it's really what the stance -- so I think -- at the the beginning part the ten yard line if you will.
Of this whole fiscal cliff negotiation.
-- with a lot.
What what are you hearing about which side is willing to budge I mean this president just won reelection pretty convincingly promising to raise tax rates on the wealthiest Americans.
Republicans lost seats in the US senate what's the motivation for Democrats to blink here.
Right I mean it's a tough position negotiating wise for Republicans to be -- but the key point here is that you're starting to hear things from Republicans.
That they are willing to talk and begin to negotiate at the table they're not.
In a great position for that negotiation but the -- key question is whether President Obama is going to take this moment to get Democrats to the table on entitlement reform.
Medicaid Medicare Social Security.
And whether any of that can be specific on the democratic side because remember while you're hearing all of this.
Backing off of the tax pledge in other words.
Willing to close these loopholes and cap deductions.
You're not hearing on the democratic side specific.
Changes to these entitlement programs which both sides will agree are the major drivers of the deficit and debt.
Listen if you.
Raise taxes as the administration wants to do now you don't in other words extend the bush -- tax cuts you raise 824.
Billion dollars over ten years.
Now the government the US government is funded it takes one point three billion dollars a day.
To fund the US government so you divide all of that do the math care than -- And basically you get about 65 days of funding for the US government just on the taxes.
So it doesn't get you too far in the big.
Well and and I've heard some Democrats saying maybe you wouldn't be such a bad thing to let the country go over the fiscal cliff at least for a short period of time.
That's one negotiation ploy.
If you're hearing that.
As well you know if you go past that deadline then the new congress could come back and retroactively.
I give them everyone a tax -- so those new congressmen.
And senators will be able to say that they -- a tax cut its all semantics here from the bottom line is what the president will bring what house speaker Boehner will bring.
And these closed door negotiations which you know will get a sense but probably won't get the back and -- Well 36 days left to get a deal done most of those days in December when not a lot usually happens in Washington it's going to be interesting thanks for watching of course Brett.
OK you can --