Who can save us from the 'fiscal cliff'?
Culture of out of control spending in Washington
- Duration 11:22
- Date Nov 26, 2012
Culture of out of control spending in Washington
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36 days from going over the fiscal cliff you should know what's at stake if the partisans in DC don't figure out away in a -- soon.
Bush tax cuts expire the payroll tax holiday goes away goes -- -- drive taxes up for every single American.
And it doesn't end there unemployment benefits go back to 26 weeks Medicaid doc fix and AMT -- -- as well.
Now add the failure of the super committee and the sequestered one point two trillion dollars spending cuts of 600 billion dollars in defense another 600 billion dollars.
In not just defense cuts.
Too much for any economy to handle all in an instant but why are we here.
Really can't blame revenues Americans fork over 2.3 trillion dollars in taxes and fees last year.
Another record in fact tax revenue has gone up for decades.
The tax -- hole -- in DC are stone cold drunk on our money.
The problem is in the spending spending is out of control to Mr.
President were already were waiting for you to stand up and show some leadership.
Haven't heard a thing crickets coming out of six.
I think -- don't -- virtual things -- there's -- that I did his movement going on here first well eventually some Republicans are breaking finally was Grover Norquist.
That little follow it that keeps threatening people.
On K street and they're beginning to say that there is a need for some revenue.
And I think it whether it comes in the form of limiting deductions to 50000 dollars for people who were making over 200.
Fair and we we'll get all that we're gonna get to Grover Norquist we're gonna get to all that that did deals that may go on.
Let's talk about a bomb worse is it towards his deal where is his idea where -- his proposed.
I don't know Medicare Medicaid -- some sort of reform to get those tax cut and of course is deal.
Well first -- the first -- I think there is gonna be some reform entitlements and that will come in the form by the increasing the age retirement age for Social Security or.
Taxing people on which Saddam actually on the 6000 reaching out to thirty and 40000.
There's that things in the works here but then I can let all this happened once on the thing is amazing to me that you're -- all this to happen always.
These horrible -- you talk about simply protect people making a lot of money.
That battle let's talk about their fourth segment data number came out.
If you go ahead let the bush tax cuts expire here is 83 billion dollars.
It's -- -- day's worth of donated nine days with the government.
That -- I think that.
Let's go back to the failure of the super committee is really the reason that we're all here.
They were supposed to get to a deal that couldn't get to one they -- everybody walked away to some symbols things about fell apart.
And so -- President Obama and the congress they kicked it to.
This year -- now we're leading up to this moment last February John Boehner speaker of the house sent a letter to President Obama saying.
Tell you what this fiscal cliff thing is gonna be bad for the economy why don't we worked together now before the election season gets hot and -- and try to get -- stunt President Obama says no thanks.
This isn't what kills me is that that nothing has changed since December of 2010.
That was a lame duck session.
President Obama stead after getting they of the -- but that he talked about -- and and losing spectacularly in the 2010 mid terms and said.
The worst thing we can do -- high unemployment and slow economic growth is raise taxes on anybody therefore please join me and supporting the extension of all the bush tax cuts.
There's actually nothing that has changed fundamentally about the economy now except for that our economic growth.
Projections are worse except for that they won an election so political expediency and revenge or not a great way to make good policy.
And that's what's happening.
But those of their campaign slogans let's be honest and they don't seem to be.
Making any concessions I understand that they want the Republicans given that they're gonna have to decent -- serious about cutting back on spending about.
-- back in entitlements because without that it's not gonna make any difference if they raise the taxes because we're still spending way more than we can afford and even the raising the taxes and and taking out the bush tax cuts -- -- going to make this problem go away.
Ryan bear with me food stamp recipients the latest number of November food stamp recipients 47 million dollars more than Alabama Alaska Connecticut Delaware Hawaii Idaho Iowa Kansas Maine Mississippi Minnesota Nebraska.
Nevada New Hampshire New Mexico.
North Dakota Oklahoma Oregon.
A Rhode Island South Dakota Utah Vermont West Virginia Wyoming.
Populations of those one or more Americans on food stamps I mean they're struggling.
Other -- the economy still struggling and building and your point we have Eric Cantor on the radio today -- -- majority leader who arguably has more power than John Boehner.
And I just said to listen if you're gonna go up five point is Bill Kristol says let's just put it up five -- give the president his trophy that he wants.
Was gonna happen he said Bryant if I thought it would work -- which is something against what I that would I thought was against Republican doctrine.
I would do -- this but I believe it will -- -- economy why can't we close loopholes like can we get -- -- some threshold legislation and the most important thing is.
There will know right now -- the next four years ago I believe.
By the way this month goes.
This is new Barack Obama let's go get this that lets us stay here roll our sleeves let's get this done what do you need what you need what -- you need now.
Then we're -- know Linux for years gonna be different but if he doesn't if he backs -- -- Timothy Geithner cold.
Got to deal.
We're in trouble that it looks like a -- a single -- Jay Carney -- -- of the press conference today this and how he's he's he's summarizes how this is gonna work let's.
The president has made clear that he will not.
Signed a bill that extends.
The bush era tax cuts for those making more than 250000.
Math tells us that you can't.
Get the kind of balanced approach that you need without.
Rates be part of the equation so they asked him a lot of do you want to.
I don't know I was listening to that and I'm thinking okay -- let's just let's set aside the politics for a second let's just say that you could get the amount of money that you want it.
In in a different way whether it's limiting deductions -- This is it limiting deductions and I'm talk about the spending.
Then why wouldn't you take that deal if you get that to the same results why not do it.
Because the temporary measures have not worked then this just -- it seems to me that they're being and I understand they're in negotiations but.
Again that doing something just because it works politically does not make necessarily for good policy and I -- unfortunately would come back to bite them but.
-- devil I think it will be a deal because to knowingly pushed the country into another recession would be unconscionable and that is not the republicans' fault.
The president won fair and square and he's in charge.
Now what if Bob what if Erica and I heard this morning talking about he may be interest hidden in possibly.
Talking about deductions and some -- -- reforms that -- raising rates.
If they're willing to move on that would that mean that the Republicans have saved the country from going over the fiscal cliff.
Well no it doesn't -- -- from me right now are forcing this over the fish who couldn't they continue to insist on protecting wealthier but if they sign on the battle it ought to look you don't take the blame a guy got his credit -- -- how much revenue with the deduction -- -- Galen just say that it was the best isn't really look to the amount that they were suggesting in terms and regulate -- I think that's I think that's.
That I think that's reasonable position and there is going to be spending cuts they just are I mean you can't the whole idea of whether recession balls -- whether it was that.
The super committee was always to have three or four dollars in spending cuts for every dollar round.
We'll Libyan entitlements -- -- Medicare Medicaid -- think Durbin indicated yesterday he possibly.
Would be adjusted net and in the bigger question I think.
Is the president really gonna keep to 250000.
Dollars because that's negotiating point now if Eric Cantor said we're not raising -- regardless don't talk to me about raising rates I think doubt be wrong.
When we have Warren Buffett say 500000 should be that racial senator Schumer says a million should be the threshold what is the president saying 250 or I'm not signing up your glasses at all.
Campaign promise that's what it is he -- wanna lose face and do it again and extend the bush tax cuts -- but that's his political ideology instead of doing what's gonna be back.
He economically for the mentally rhythm and if he has any problem one can limit the sense I don't -- on the he's -- called and that's shows it's not gonna make a difference that's the point so why is he doing it anyway because he said he one that's not a good enough green city and not an English.
I don't allow tax rates to detectives to go from people who make that kind of money.
And I think the change that and entitlement reform you're gonna get a deal on the senate and -- I want to ask you.
If -- if you drying assigned to grow -- call -- Grover -- by the way so what's going on here you -- you have to read read between the lines here a lot of these people are saying only when the Democrats put up their end of the bargain that they would be willing to negotiate but again.
If they doing and in change the rates or close loopholes or.
To whatever they have to do they will be violating the Norquist.
Pledged for the pledges that they -- -- -- Should that should they be willing to violate the pledge that they ran on likely want on and now but may change -- him.
Okay it's a two point I have never liked pledges about anything up I think that -- -- usually get elected neglect by the alleged Leon -- allegedly -- -- -- at about every year every day at school.
But the pledges that they could only -- -- in -- to take if you are elected to congress.
Is -- pledged to uphold the constitution and a pledge to you make sure that making good decisions that's what I I think this gets to let me ask a question Eric.
If Republicans get to a deal where it rates.
Go up less than they would -- if they let the -- -- tax cuts that expire.
Then have you violated the -- and I think that this is getting up in it it's an odd.
-- you have because and I called got Grover is -- -- you have to parts of this -- number one don't agree to any -- change and number two don't agree to anything that would.
Was higher taxes to anyone and I said -- how can you get away.
Let's ask you some assign that when -- when you might need to look at you good health is OK here's what nurses get it can I just tell -- he's here's a guy.
Who's got 275.
Or eighty people.
-- the 535 legislate what he did when he signing somebody's not admit he's not even an elective procedure is that he's -- -- essentially.
But it's the spending and tell us you know -- -- is -- phenomenal.
And he's right -- -- -- the season.
Not Norquist says what is.
Nor presets do they that you shouldn't say he wasn't elected officially -- a blow hard he's got nothing was given now this people were scared and asked her to push back on the -- and it's about time.
This guy has no right to hold up anybody he's nothing more -- a guy has an office -- occasionally.
Bob what happened was he got 236.
Represented in the house and 41 senators to sign on and when they signed on a lot of on.
A lot of them put that little -- pledge read up on their.
It was like getting the good housekeeping seal of approval in conservative districts does say they do that promise that you aren't going to do what they had -- complaint that Republicans have done in the past which was to go back on -- word.
Actually but the situation is changed now this as bizarrely -- said that is time now for.
Us to forget about Grover Norquist forget about these 1520 year old pledges and give back to the reality that we're doing right now which is much I believe.
Not on the public and sorry this all responsibility.
-- and that's a simple honest good thing to do for the continent and -- -- all Americans not just one pars Woody Johnson.
For fiscal responsibility.
We're in now.
What which featured in the current Mac rumor we heard Bruce's -- meant much generic and senator -- chops not spiteful people or trying to let -- -- I'm in mergers and consequently.
We want to hear -- Bob -- can't -- SOK because he's he's he's got this is -- -- -- he is unhappy guy I think we got -- -- coming up look at.