You're watching...
Bob Cusack discusses the conundrum of where the government needs to begin on either issue.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Because.
Every economist that I respect says -- if you raise tax rates at this time in fact the president even said that a couple of years ago.
That been an -- the economy we're trying to help the economy.
And so unless I can be convinced that raising tax rates will be beneficial then obviously I think there's -- reason and grounds -- my position.
It's a question raising taxes vs trying to find money to pay for government services.
And in the conundrum of where to begin on either one of these things as -- and Bob Cusack is the managing editor of the hill.
In your post today you suggest that the White House knows that if it if it cuts taxes they're gonna be forever they raise taxes are gonna drum up.
200 billion dollars out of the economy.
This kind of smacks me -- department of the obvious kind of stuff you raise taxes you're gonna take the money out of some place obviously is going to be the economy isn't it.
Oh yeah definitely I mean and -- both Republicans and the White House are saying that you know everyone's gonna have to feel a little pain but -- you have that jobs factor and and if you pass something if they if congress fumbles on this it could it could just be catastrophic to the economy.
And that's why did the White House is continually insisting on a balanced approach of raising tax cuts for millionaires but Republicans say wait a minute -- have to do entitlement reform.
We should touch Social Security something that Democrats are saying shouldn't be -- this time around that was something discussed in the summer of 2011 between speaker Boehner.
And the president.
Now they're saying well now let's do maybe Medicare Medicaid mean there's so much in the equation here.
The White House insisting on one point six trillion dollars in revenue.
That is a large number and Republicans say that's a.
Non starter.
And it -- and talk about the revenue side of a just for a second Peter Orszag who's the former director of OMB.
Ran the numbers and said hey you who you repeal the bush tax cuts for the top tier.
You'll come up with something in the neighborhood of eight trillion over ten years but if you repeal all of them.
Including the middle class once you get 32 billion just for that segment all collectively.
Forty trillion dollars over ten years sell if it's good to raise taxes on the rich and we're all feeling pain wouldn't -- be good to raise taxes -- a little bit on everybody.
That's what a lot of Democrats -- congress say look if you look back at that the Clinton administration well in the economy is doing quite well then and they want to.
Get rid of all the bush tax cuts and a lot of the democratic budget proposals over the last few years.
I assume the end of all of them so that's going to be Democrats and liberals say listen we don't need to.
And I deal on Medicare or Medicaid or Social Security.
Because if we do nothing well then we go over the fiscal cliff and that's fine with some of them now of course that people like Ben Bernanke are saying.
That would be disastrous but but the incentive on the left is is not to do anything because getting a better deal than doing nothing is that's what they want they and so who want.
All the tax cuts no way.
And that definite thing that's most concerning to me is champ firmer our senior producer over the capital says they're still not a day to discuss this.
We were hearing in the waning days of the presidential campaign.
That they hadn't discussed this for months on this dates coming and it doesn't seem like there's a sense of urgency in DC.
To get something done about this.
Yeah that's right I mean.
Wall Street I think was well I mean they made some of them may even play a little bit by the happy talk at the white house with congressional leaders.
After they met with present Obama.
But don't expect any type of deal anytime soon in the way congress works and perhaps the -- -- always -- is that they're not gonna get a deal before they have to and that's even if they get a deal so.
Any type of deal that is struck is going to have to be right up against Christmas perhaps right up against the New Year's Eve I think this week -- next week you can see the sides jockeying a little bit for a for leverage but but the actual deal making mean they're nowhere close.
Well be something nice for Christmas list Bob -- a deal a deal on this already -- Bob Cusack from the hill thank you very much we're headed off to a commercial break.
More news on fox -- dot com after this.
