Power Play 11/27/2012
Obama back on campaign trail, revenue realities and how big a deal is the fiscal cliff?
- Duration 25:11
- Date Nov 27, 2012
Obama back on campaign trail, revenue realities and how big a deal is the fiscal cliff?
Also in this playlist...
This transcript is automatically generated
I remind everyone within the sound of my voice of one fact.
This congress is already one vote away from avoiding the fiscal cliff for middle class families and small business.
Their reckless and ideological approach.
And threatens our very future.
And anyone who's serious about solving the problems we face should ignore all about -- with the president.
-- -- older gentleman.
-- -- majority leader of the United States said Harry Reid from Nevada.
And the minority leader Mitch McConnell from the commonwealth of Kentucky laying out essentially the two views about what to do.
About what's happening with tax rates and everything else and you heard.
The majority leader and say that from the Democrats perspective the thing to do is go ahead and passed.
Extension of current tax rates for everybody but top -- go ahead and do it now get it out of the way and move on and you heard from the minority leader.
That they need to do better they need to do more they need a bigger plan to bigger approach so how big is big.
This is powered by I -- Chris -- and we will endeavor to answer that question for you Internet we will also endeavor.
To have a good time today because we have with us he can Stoddard she is of this bill.
She's a Fox News contributor.
Classy she is.
Well read she is broadly informed about the -- of the day.
We just let Charlie -- more from taking the other side on those things we have Charlie hurt he is a columnist for The Washington Times.
He is wearing a leather vest and so the question.
Before the gambler and for 88 -- is this.
When we talk about a big deal.
Basically what we have and I -- to do that before we get any further down the -- I want I want people to see if fiscal -- cliff graphic -- -- bring that up I would I would like for the Internet to see that.
Congress -- I know you can't see it right now it gave it.
But the Internet and joining us this is the -- fiscal -- as we talk about the fiscal cliff what we're talking about really are two things -- a bunch of other stuff that goes -- but we're talking about two things were talking about.
A dead man switch cut.
Package across the board of it what is at one point two trillion dollars over ten years.
We were also document the expiry.
The current tax rates for everybody who pays federal income taxes.
The question is -- -- when we talk about a big deal.
We're really there's some people seem to be talking about a multi trillion dollar multi year really big deal.
But other people are talking about living inside the constructs of what's going to expire at the end of the year right what's what's up.
Well in the summer of 2011 when and this ill fated debt deal discussions that when they fell apart between the house speaker and the president.
They -- the big hope was that they're gonna get to afford trillion dollar deal and that's no longer realistic so.
What we're looking that is trying to solve something -- that the couple first days of January.
That involve this tax rates so that the economy is not hit by.
A sharp increase in taxation coupled with these spending cuts to come online domestic cuts as well as military -- so.
There's a lot of other things that are that are on the line the Alternative Minimum Tax.
It's going to be a big problem it's a lot of money.
That has always been patch right now it's up in the air and that's a big problem the Medicare doc fix would be an almost 30%.
Pay cut to Medicare providing doctors they would probably -- a lot of patience.
How come January the payroll tax hike as -- there's a long list of things that are in there and they need to be dealt with immediately these are relatively speaking.
Small things this is not any more but they would be in the package they have to be discussed they have to be part of the Wheeling and -- dealing.
And what you see now is Republican concession on.
Finding new revenues through capping deductions and closing loopholes they say that's enough money.
And the Democrats say no you can't get there without raising rates.
Republicans will tell you finally -- not -- -- militant movement millionaires and they will go up above 250 if it becomes.
They're gonna they're gonna support a slight uptick in rates.
But that's sort of and that's on opening bid.
And Democrats have in their opening bid said they want what they want they are providing no new spending cuts proposing none of them.
They have said that they're pretty dug in on Medicare -- that I think the president's been a little more compromising on Medicare but.
Medicare is where they have to move the Democrats reading too much mr.
-- On the question of how big is this deal is the deal limited essentially is a -- says to the scope of what's out there that has to be dealt with all of these things that are there.
Where is their chance that this goes beyond.
What is immediately hanging out there and we talk about a larger package you know we heard David twelfth.
Who is the president's senior political advisors say that his goal that the president's goal is to do something that is that recess the fiscal.
Altitude of the country for the next twenty years.
Yeah do you I cannot find that hard to believe just because you know do.
President Obama did have a shot -- that had two years where he could verbally -- different trajectory of spending in this -- and failed to do it.
Didn't even theater and all these attempts to raise taxes even.
He didn't really go for that when he -- actually succeeded on the but so I -- it sounds to me like and you know when he says that it's been trying to pretend like they're still the adults.
Who but who the big problem here is -- you have the white house on -- we have the senate and control Democrats.
And -- -- that gives him very good hand but the thing that that that sort of offsets that.
Is that what -- has to deal with this he has to deal with the -- -- movement wanna do what previous government.
But you also have a big chunk of Republicans in the house.
Who want not a big deal but the really really really big deal right and the ones that -- that that does reset the fiscal altitude or -- those that -- you have.
Did you hear that that would be the you know does that -- and they're not reckless interview that the Democrats like to try to portray them as he's.
Easy you know tri corner hat wearing -- Party.
You -- pitchfork people they're not.
Actually they're just did you have anything about that you're opposed to those people know one -- those are there those are your people eyes or whether that's right go ahead and and they tried corn.
Pat Robertson who big debates over buckles they have prepared the pilgrimage and I believe it but the but that those -- did what they want to do it didn't actual.
Do you actually the ones who.
Are are are on the conservative side saying -- we are indeed true.
Well you're right if there was any it was a piece.
In Washington that was Chris Cox former congressman.
Who wrote is it with how big is that -- national debt it's not sixteen trillion at 86 trillion dollars because when you factor in all the unfunded liabilities and all of these things.
I had a eight sort of a chilling moment today thinking about.
If we are gagging on this if this which is relative you know the whole size of everything if we are gagging on this.
How on earth is it ever possible that will address the larger issue.
Well that's what are deserving of -- bomber right I mean I usually don't want to hear but -- -- I -- -- -- That Simpson Bowles plan was not embraced by either party it it is a pretty good blueprint both parties will admit -- -- they won't support it.
Because of both parties don't want to do is reform Medicare.
Raised some taxes caught some defense spending and cut other spending the -- they don't want to do it and no one wants to.
Dude it's tough things and they -- all before us we know what what it involves and it's it's really if that's why there is some hope that it divided government.
That could happen I think it that really the pressure is on President Obama and this is why.
I think Republicans like I said privately admit that they will -- slightly on rates they're gonna find all this revenue that's going to be -- -- popular as well begging for a compromise but.
The President Obama wants a debt ceiling increase.
And -- he wants it indicating it is time.
He's gonna have to sweeten the deal for Republicans and that's why I think he probably ends up making it a bigger deal by cutting into Medicare we hope.
Well I just making the trains on time and yet of course from my perspective I think it's kind of players because if we ran up against it that's going to -- -- Pretty good punch in the -- for everybody.
But you -- the credit rating downgrade if I have is that senator -- became more expensive maybe that might not be such a bad idea to an -- to where to get off of the the -- Reporter we're going to take a quick break politically so that -- surely can stock up on canned goods where he's coming for the cure for the coming new borrowing crisis.
But -- -- we thank you so much for making me here today the Internet continues to -- you.
Charlie -- has agreed against probably his better judgment to stick around because when we come back we'll be joined with the -- by democratic strategist and we'll talk about this.
The president's playing offense he says Republicans are going to steal Christmas there either -- economy they're going to do everything terrible if they don't exceed to his wishes on having tax rates for top -- co op.
We'll talk about that we'll talk about how that's going to play out when you come back to stick around.
This -- -- to say one thing all the young people.
And back with President Obama wiping away a tear tear a sentimental tear as he was doing what was billed as his.
Final campaign appearance ever in his whole life for ever.
And this is power play.
And that wasn't the president's final campaign appearance back in and November of Des Moines, Iowa.
That was the beginning.
It was the end of one chapter and -- are now seeing the beginning of another as President Obama gets ready to head Q.
A swing county in a swing state he's he's headed out -- Montgomery County Pennsylvania suburban Philadelphia swing county democratic leaning swing county to go make the case for.
Expiry of the bush tax rates on the top income levels.
So we will talk about that channeling Internet we will talk about that we will get your chats but we will talk about my column today which which I -- -- -- I've been dying to hear about.
We will do those things because Charles hurt of The Washington Times is with the -- but also because Julie -- jet -- Who is a former communications director for governor Jon Corzine of Corzine -- -- Or resign.
Resign resign but back in the senate actually nice to be down there and you guys.
That out yes do you really you know either I -- -- -- accidentally lying and not misty stated.
-- exactly it's okay we -- nobody wants to be here but that's that that means more for us it means more for.
You guys get it well that's -- -- year old interns who are thrilled to be down there there -- about the only ones that are.
Well I know.
I Madden Charlie and I would like to distance ourselves from your remarks.
So here's here's the question and we'll let's start with you -- of the New York fourteenth floor there in the us are -- mother ship.
So the president is.
At a moment when a lot of people expected to see basically the president and Republicans huddle up in Washington hush hush cut a deal.
Get past all of this Jabber Jabber.
And move on.
With the Republicans seem to be desperate for a deal begging for a compromise.
Why is the president going out and -- and.
Well about time -- I mean I might think I am I big complaint about the president has always been that guy had no idea how to use the bully pulpit -- horrible at it.
And as somebody who lives in new York and gets to see what goes on across the river here New Jersey.
You know we have Republicans -- Chris Christie for example who -- like the masters of the bully pulpit and I hope the president has learned some lessons from somebody like Chris Christie.
Knows how to go out and sell something I think that's what he's doing today look at me he has.
A very clear position and what he wants to do with these tax rates.
I think he's very clear about the fact that you have to go and sell them to the voters the ones that -- -- gonna vote on this in two years in congress is up again.
And so he's doing the great thing -- a politician I you know god bless it's about time is actually going -- and doing -- think this.
Charlie -- with the president's -- it.
Is that if he can.
Make the Republicans -- it on this tax rate increase that he can basically Internet too short and that's the Republicans want to put everything into one hopper.
And do a big deal that lets them have more wiggle room on other issues with the president saying it's no I won the election.
The bush tax rates are all going to expire.
-- either pass legislation.
That extends the tax rates for everybody except for those above the 200 that single individuals about the 200000 dollar mark.
We're gonna jump this car off the fiscal -- -- -- -- -- -- -- Do this is bad is that if he does that that the Republicans will be shattered and -- didn't disarray there well I think.
Didn't do as AB just -- Mention it I think that she's right.
That I think that that there is wish there -- at the end of the day there.
We we -- room.
At least behind closed doors among Republicans about.
Oh with good for the upper income.
Speaking at the -- whatsoever if it hit.
But I do think though that same time that they're gonna that this -- debated John Boehner has a lot of Republicans it is it is.
Conference murder and it demand.
That we get into a whole lot of other stuff rightly that we get into the you know -- that -- the tax loopholes.
That we get into.
You know fixing entitlements and things like that.
And so do you but obviously you know if you.
Part of being of the visit because this election is kind of weird.
And in -- you know the -- was kind of weird in that everything just sort of stayed the same after all of that money.
I think that the you know -- Obama is clearly in a position where he is needing to.
Drive home the point and make the argument that yes my -- reelection did come with a mandate it wasn't just sort of.
Thundering along so the danger -- Cooley is let's say the president is able to break the back of the Republicans on this and go out and as you say -- And be aggressive in this -- to the Republicans are gonna ruin Christmas.
And hurt the economy and do all these things.
Even if he could successfully pinned the blame on the GOP doesn't isn't he taking a chance on kicking off a fresh recession.
If if he goes over.
He goes over the cliff I think he's trying to do everything can not to go over the -- remember he's dead right before the election we're not gonna go over the -- and by the way can I ask a question that nothing's -- -- -- Is this is the cats.
Driving that car off -- this is what.
Now we got to have the rights to two inches which is a property of NBC universal studio prostitutes is not a dry it would know to think you're.
Dryness are a lot of the Clinton right exactly we have the we have a dog it's totally different no community -- -- so -- look at.
Nice Hawaiian water folic as a the president's -- they basically.
-- I think I think the president -- the fact that it would not be good for anyone despite what -- -- other Democrats are saying.
To take this to the brink and to go off for the fiscal cliff -- he keeps saying but I think he also understands that event of the day.
He needs to play the hand that he's been -- because the Democrats are gonna go nuts that he caves the Republicans again.
He -- and then like standing extending the bush tax cuts.
You know as much as well as it's twice as much as John Boehner has to worry about his conference and you're so right that he does because this conference is completely all over the place even if John Boehner.
Tried to cut a deal as he did with -- grand bargain a few years ago you'll remember.
Of people like Paul Ryan -- people like Eric Cantor undermining him every step of the way.
And I think Democrats have the same issue with the president that he can no longer just cave on the bush tax rates.
Because there's people in the caucus -- the replace Democratic Caucus that are just not gonna go along with that matter what the president wants to do on -- And you through -- another interesting the thing along with with the -- and is it.
You know -- because it is the center performed so terrible in the in the elections yes and because.
Mitt Romney got -- pretty good.
That the house actually.
You know the house did fairly well you're house Republicans did fairly well that he -- -- -- the second -- majority since World War II right now.
But you for all that all think they are all anyone is hearing about how Republicans got round at this time.
And because again because the senate and in the senate races were so terrible for them right and so in two years and in four years.
I want the blame for it if we do guru fiscal -- a lot of the blame is going to land and I don't think you were aware -- -- or even part of Washington.
There and I are not left yet there are no left and I think that it's new and as who's saying you know I think it really it is very -- -- hit it the worst case scenario for President Obama and Democrats is if we actually do go over fiscal and you go ahead.
And he lets us tell you publicly -- -- about that one is don't forget Democrats actually got a million votes more for the house -- the Republicans did redistricting or gerrymandering to Karen Republican majority but.
The other aspects of the says if you look at polling that I've seen recently and -- see anything that contradicts this.
Most people would blame the house Republicans who were to go over the cliff now I think that's Obama's banking on I think that's why he's going out there and he wants to sell list.
And saying it is the house Republicans keep that keep keep that theory alive that it is the fault of the Republicans.
We go over the fiscal -- -- he's finally learned as a good politicians use the bully pulpit to do that.
If bush if you know Republican president were doing it I would say god bless -- that's exactly what the president should do is use the bully pulpit.
To pin blame another side.
With all apologies to mourn Michael's we say thank you Julie Robiskie we thank you yeah.
Much we'll see you back in in this occurs in city sometime soon we hope perhaps and their brother -- we thank you were affording us all of this time today.
Will will give.
The -- -- Rabbinate.
I don't know what that means it's probably like one of those license plates that you try to figure out when you're on interstate but certainly revenue and says this let's hope for a random -- Associates.
Strikes congress not likely I would not take that -- -- the bank he but we will have a Centene discussion with a member of congress and we come back.
Congressman bill Flores -- Texas who serves on the Budget Committee who's going to be read the middle of this whole.
Will be here and he'll tell us about what kind of -- we can expect to be wrote to stick around.
We don't think they're raising tax rates is something that's good for this economy that will help grow jobs and so what we have said is there are ways for the federal government to.
I'm having more revenue if we grow this economy engaged in tax reform.
That was house majority leader Eric Cantor yesterday.
America's Newsroom there -- with Bill Hemmer Martha MacCallum.
Talking about how to raise revenue without raising.
And by the way revenue is what politicians -- taxes when they're increasing them.
The how to raise more revenue for the federal government without increasing tax rates this power play welcome back.
And one of those folks he's gonna have a lot to say about this.
Is bill Flores he is congressman from the great state taxes.
Hails from College Station down there with this with -- -- people right that's correct -- it -- only with our next tighten when.
Since that he's -- -- the big twelve I have some I have some issues about that that we -- is that after you leave that for another time.
Here's the question.
-- -- Conflicting language.
On what constitute what we're talking about we talk about revenue from the Republicans.
You hear from the speaker and that when we're talking about -- revenue that this may include closing Google's in not revenue neutral.
The big thing that Mitt Romney -- make you remember this from the campaign was revenue neutral we're gonna close -- but we're gonna lower rates -- to make it revenue neutral.
The speaker seems to be talking about not revenue neutrality we're gonna close the -- of the government's gonna keep that money.
And then you hear from the majority leader though we can get you revenue by simplifying the tax rate in creating more growth that will then create more tax revenue.
Where are we really.
Well I think.
Both of them are on the same page I believe that the speaker's comments have not been.
-- -- -- -- Look at our view of the world is less growth economic pie when you grow the economic -- we have more paychecks more people making more money.
Then you have more tax revenues coming in the government so where is that the president would like to reallocate a shrinking economic we -- -- growth -- And one of the ways -- of the bias through pro -- tax reform now we're not gonna get all that all of that now.
So the best thing to do in the Enron is to tried to -- around the edges by adjusting the the tax -- loopholes and so forth that -- But the that the speaker's critics said they'd like to see lower rates is part of the process.
Just hasn't made in the media.
One of -- one of the difficulties we have in this messaging today is that raising revenues is totally different than raising tax rates.
Raising tax rates usually doesn't achieve revenue growth.
But pro -- tax reform passed he's.
-- a tax increase whether it's in.
And a net tax increase whether it's through.
Rate increase which sounds like that's a non starter in the house correct but is there and a net tax increase.
Achieved through loophole closures or other kinds of devices whether it's the capital gains tax something else is -- that tax increase that could pass the Republican help.
So I believe there is this loan is it's the revenue increase.
Of the tax increase is due to economic growth.
So -- it but that's because there we got so that's a revenue increase your credit would be that this CBO.
Would be projecting that if this past that the economy would would improve in the government would get more revenue.
That would be a tax revenue increased but there's no tax payment increase and that you think could pass Republican.
How's it would be very difficult for that to happen at this point in time first -- -- If you have a tax payment increase.
Of some sort and that means it -- hundreds of thousands of middle class Americans lose their jobs.
For -- singular ability to build that the senate passed last year that the president is essentially put on the table.
700000 middle class Americans will lose their jobs as a result of that.
Of that tax increase at a -- just try to frame it is just a tax increase on the top 2% of those that you need to pay their fair share.
-- -- those people aren't paying 44% of the textbook how much more -- they need to pray before that's fair.
And is it -- if they pay more taxes.
That 7000 middle class Americans lose your job and -- say -- and so that's reasons to be hard for us to vote for raising.
Tax rates or anything to prove it produces that tax revenue increases without economic growth.
-- congressman thank you very much for being with us today -- things.
There is a little a little more capacity a little more players he has -- and we think I hope so we wish -- the best OK Internet there's -- Charles today sorry about that.
But on the hunt -- Jonathan Hunt the real deal the real Jonathan Hunt is up next I know you like that he's there but before I let you go.
About some power points.
So -- -- points today another lost opportunity question mark.
So here's your first PowerPoint mr.
70% when Barack Obama took office in 2009.
He had an approval rating approaching 70% it was enormous it was also the greatest moment of political opportunity.
In generations Republicans were desperate to compromise with the first African American president elected by a large margin.
I'll point out they were ready to go.
That didn't happen instead what happened was the president went -- And did not seek -- compromise with Republicans who were in retreat.
Found them to be on satisfactorily.
-- and his ideas and shut them -- on things like the stimulus and things like his health care bought when he -- So that's what he did.
It's time it's the second time the president got reelected but he that's smaller majority this time Republicans hold the house even still.
And what the Republicans are looking for -- here's your second point duck and cover.
There were a little cover they want some help from the president they're trying to do a deal they're saying Mr.
President please we're offering new way to get some more tax money here please give us and covers so that we can get the job done.
The president so far is saying no.
So power play with the which is a bit of a movie.
Would be encouraged the president to go see the Abraham Lincoln and -- -- they -- bring it to him.
At his house.
Because they do have a screening room and stuff there and that is and we remind you of this quote very often here.
Internet is what Abraham Lincoln said which was this.
They tell me -- should destroy my enemies but if I turn my enemies and friends and I just read my enemies that's the truth about politics and this is a special moment for patriotic grace.
See if Washington can -- thank you very much for your time today Internet.
Was -- back here tomorrow have a great day.