Are Republicans willing to hold the line on taxes?
Sen. Thune weighs in on 'fiscal cliff' talks
- Duration 7:03
- Date Nov 29, 2012
Sen. Thune weighs in on 'fiscal cliff' talks
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But Treasury Secretary Tim Geithner is set to meet with party leaders in less than one hour from now.
The negotiations continue today on this looming fiscal cliff -- -- That is extremely important to get solved Republicans say that they are willing to put new -- is on the table.
But only in exchange for real entitlement reform.
But Democrats say that can't come -- -- on the road several conservatives say that the GOP has already lost the battle on the budgets.
Charles Krauthammer -- says that there is still in major car that Republicans have to play.
In this battle against the president here's Charles Krauthammer.
He's a lame duck he wants -- successful second term if it starts by going over the cliff it starts with a second recession.
Two million unemployed and they -- second term.
That's the leverage that Republicans have over Obama.
And then they ought to use it and not cave in in the face of a demand that I think is utterly unacceptable.
Mean very anxious.
Last night from special report.
Pleased to be joined now by South Dakota Republican John -- chairman of the senate Republican conference senator welcome good morning.
Good morning Martha so what do you think about what Charles Krauthammer had to say.
Last night and special report there.
I think he's right the president said in his post election press conference that is number one priority was going to be jobs and growth and then we happen to agree with that and we believe that the way that you achieve that is to keep taxes low on the people who create jobs.
What the president's proposal would do.
He is raise taxes on almost a million small businesses who employ 25% of the workforce so.
I I do believe the president he wants a successful second term.
Wants a a growing economy he's got to have policies in place that will do that and he's got to have Republicans.
Who can work with him to achieve that right now it seems like this is a one sided argument it's all about tax increases which would be completely counterproductive.
You know we we've had folks on this show yesterday and -- in so many of the things that I read this morning.
On these negotiations there's a lot who believed that.
That the GOP has already.
Given in basically an increase in taxes that that is something that is going to happen that taxes are going to go up.
And then you have voices like Charles Krauthammer saying what is the Republican Party about to.
If it is not about holding the line on taxes and spending so which side is it going to be.
Well that's it's it's he's absolutely right they are -- the Democrats are the big government high tax party we are the limited smaller government.
Low tax party and we have to stand.
On behalf of our principles in this debate.
It strikes me at least that this can be resolved if the president is willing to put entitlement reform on the table Republicans have been very willing.
To talk about revenues particularly in the context of tax reform which is necessary to fuel economic growth.
-- -- -- -- -- I -- NS because it pardon me if I may bid that there was a piece out this morning in Politico which basically basically says that the president says you know what I won the election.
And what I said was everybody's got to pay their fair share he will not negotiate on that over 250000.
Increasing is seeing an increase in their taxes but he said you know if you show me a way this according to this story this morning you -- show me a way to get back.
Out of tax reform that's fine but we're the tax rate hikes first and down the road next -- you all want to get together -- -- your package and how that works with tax reform.
Adding to the same and revenues -- that will take a look at that.
-- -- -- -- Well I think that the president what he's saying is if he's concerned about her -- than in the and jobs.
Clearly raising taxes we've got lots of analysis that's been -- that suggests it would cost us more than 700000 jobs and reduce economic growth.
That the president is gonna go into a second term with a bunch of policies that are gonna make it very difficult for the economy to recover I think that's something he wants to avoid.
That being said.
As I mentioned earlier Republicans are willing to enter into discussion with him and I hope that -- secretary Geithner comes up here today Capitol Hill.
That he won't put forward something concrete so far all we've gotten out of the administration.
Are these demands for higher taxes they are now willing to discuss what is really driving federal spending and debt.
And that is entitlement programs they have to be reformed if we're -- -- get the country on a sound fiscal trajectory.
So we're very willing to enter that discussion to talk about tax reform.
The president wants rate increases that would be counterproductive he said two years ago and 2010 when the economy was weaker than it is today.
Or I should say was stronger than it is today.
That tax increases at this particular time -- be -- a bad idea.
And they -- -- I mean we had to say you know we knew we ran in this election.
Saying that everybody has to pay their fair share and -- that means that folks on the upper -- of that spectrum and I know that you believe senator that that that would be it a jobs killer.
But then that you know look elections have consequences is gonna be the mindset from everything we're hearing and and it's in no doubt as to what I'm asking you -- Are Republicans willing to hold the line to say the president I am sorry.
We will never agree to a deal -- involves an increase in taxes are they.
I I think any deal that passes up here that raises taxes and raises taxes of the mentioned earlier on small businesses Martha.
Is not gonna enjoy a Republican support now there may be enough Republicans who would vote for something like that to pass it in the House of Representatives need to get to 200 -- on and it's which is saying they get some Republicans and it -- -- I would.
We don't know about that I mean I think we we don't know what the contours of a final deal might look like at this point everybody right now is sort of in there.
Corners and and and do when the posturing but frankly we need a plan from the president Republicans have put forward.
On multiple occasions they plan that would reform taxes that would reform entitlements.
That gets us where we need to go we're still waiting for that any ideas from the administration that would complex.
Disaster I want Democrats -- -- politically are you are concerned.
That Republicans might be seen as not willing to negotiate and come to the table.
Or are you more concerned that Republicans might lose their conservative credentials if they give man on tax increases.
Why I'm concerned that Republicans would be undermining what we are all about and that is growth and jobs Republicans believe that we need policies.
There are pro growth that we'll get this economy growing and expanding again when that happens it makes debt and deficits a lot smaller by comparison to because you get more government revenue.
So it is a it is that you're you're right -- so what's a core principle of Republicans.
That we don't want taxes to go up to fund more government if we have a tax reform effort.
That actually will lower rates brought the tax base in fuel economic growth that's something Republicans can embrace and there could be some additional revenues generated from that by closure of loopholes and deductions and that sort of thing.
But we can't accomplish anything by raising taxes that is good for the economy and we're very concerned about the economy.
It's going to be really interesting to see what what Timothy Geithner brings to these discussions today.
Will be reporting on it and you will laugh you'll be downhill thank you so my -- -- get -- they are always I was.