Does President Obama have a fiscal cliff plan?
Door shut for compromise or is there still more to come?
- Duration 9:52
- Date Dec 3, 2012
Door shut for compromise or is there still more to come?
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-- -- late breaking developments tonight related to the fiscal -- battle being -- in Washington now late this afternoon house speaker John Boehner sent a letter to the president.
Detailing a bold counteroffer to the administration's plan on the GOP proposal does not include a tax increase on the so called wealthy.
But does contain 800 billion dollars in revenue through tax reform another 600 billion in health savings and much more.
Now all all told the net savings amount to around 2.2 trillion dollars -- a White House responded to this letter by saying that the president is quote.
Willing to compromise but not on the subject of making job creators pay more in taxes however what our tax and spend commander in chief fails to understand is that.
Putting money into the hands of -- the American people is the single best way to spur economic growth.
And it's not just people like Ronald Reagan who understand this principle.
While Bill Clinton famously said that the error of big government is over in the -- the welfare as we know it now why because government is not the answer government.
Is a problem.
And then there was that other iconic Democrat you know the one that occupied the Oval Office back in 1962.
He also spoke of the benefits cutting taxes -- President Obama I hope you're watching this.
You can be -- Another recession.
That is the right kind of impact.
-- for your family budget and the national but.
-- for me.
Did -- think -- ball and reduction.
In -- -- structure.
They created -- -- Creating more jobs -- income and eventually more revenue it will include an across the board.
Top to bottom caught.
In both corporate and personal income tax but billions of dollars if there -- -- in the head to consume.
And I've been.
We'll have both immediate and permanent benefits to our economy.
Every dollar relief from taxation.
But he's dead -- and that didn't help create a new job.
And the new -- and these new jobs and new balance can create for the job and public so.
-- -- that is the message to President Obama needs to hear unfortunately there is growing evidence to indicate that he's not interested in striking any deal at all.
Now he may in fact want us all go over the fiscal cliff after all.
He be able to point the finger of blame at the Republicans to get all the tax hikes that he wants all the defense cuts that he's always wanted and some Democrats that just stating flat out.
They want to go over the fiscal -- watch this.
I personally think you'll get a lot more deficit reduction if we do the fiscal cliff actually the markets will reward the fiscal cliff over a period -- they'll -- -- some panic -- some.
Some moaning groaning but I think it's just a personal assistant puts -- a real cliff it's a slope.
And -- you're gonna get the biggest bang for the buck in terms of deficit reduction and I do believe it's time to be deficit hawk I really do I think the economy can stand it.
Hi yes we will going to two quarters of recession the CBO says and I believe that but you know we're in deep trouble here somebody's gonna have to pay the bill I think it's -- have to be all of us.
Are joining me now -- more all of -- columnist and -- Patrick.
-- so the president campaigns on 800 billion dollars in new taxes.
He now wants one point six trillion once twice the amount planning.
He wants a blank check and congress to give up its authority as a relates to money and say -- -- let let me raise the debt ceiling anytime I want.
He wants a 150 billion in new stimulus but he wants no entitlement cuts at all those spending cuts.
At all now.
That sounds to me like somebody that's not really serious.
And a way to begin to correct some of what you just said that let me restart I'm gonna -- is -- where I'm wrong.
I will you certainly wrong that he didn't campaign to cut 98% of the American people's taxes.
With the upper 2% pain he was the election based -- that explicit proposal and the house what they -- election -- -- stop him.
The house also won -- Well 50 didn't.
35 congressional districts most of which have little opposition can't be compared.
To the American people voting for president but let me go to Ronald Reagan if you really they don't really -- -- -- -- give him a rubber stamp.
He won the election based upon -- current proposal -- go back to your question not 88%.
Invited -- John Kennedy cut taxes to -- -- about twice where we are today so.
It's really apples and oranges but Ronald Reagan is responsible for the greatest tax increase in American history -- the Tip O'Neill.
In raising taxes on Social Security in order to make Social Security are -- our let me -- let's not talk about Ronald Reagan -- -- -- Reagan real story is because your facts are often Patrick.
28% during his presidency true or false -- Sure it went from seventy and then went down to fifty and then went to 28% I was there on the plane.
When we got word that Packwood had a deal to cut to 28% and I -- take it.
Let me add one point John -- looking over my editorials from 1960 -- just yesterday.
And I had endorsed.
Jack Kennedy's proposal you know what it was take the top -- On individual income taxes from 91%.
I think Kennedy exactly before it happened but I think deep I think the corporate rate was a fire call 43%.
To take it down.
I'm not sure about that but I know I endorsed it and I endorsed or Kennedy's argument because it -- Right right but here we'll -- would you rate from had to make of -- -- -- -- -- the Republicans they now -- 2.2 trillion in debt to the president's lack of serious proposal here.
President said -- he wants some type a grand bargain he wants it to be fairies will work with the Republicans should you show me in his proposal where he's moved at all.
Because what Geithner presented was basically they're all budget.
Well is not only that look for the president -- they demanded one point six trillion in new taxes.
They want to -- the Tea Party noses of the Republican caucus and there are no new taxes pledge.
And they wanna get new taxes and I think the president is showing that he seemed to have a wit and charm by virtue of the fact that he -- -- more willing.
They go over the fiscal -- And the Republicans are why should -- because then taxes would go -- On everybody in the country that's ever go up on the -- and Barack Obama steps in and says.
I'm -- rescue the country from what Republicans did to save their rich folks America.
I'm proposing tax cuts for 98% of American people who deserve.
There's a way to head that off.
Is it the Republicans should pass a bill that extends the bush tax cuts for every kid passed two bills first they should pass a bill.
Extending the payroll taxes what you're gonna take 2000 dollars off the top of a Palin makes a 100000 a year in -- 1000.
-- -- the -- if you reached that's gonna go back into -- -- planning but the second thing you know the unity -- -- did you pass hold it they should pass the -- they should reenact the bush tax cuts send it over -- the senate and say that's -- Harry Reid you can do what you want you can accept these gentlemen the president.
What can you can offer to negotiator you can reject him and we can go over the cliff.
But that's your call now we don't wanna I -- I -- over the -- Can I -- my friend Pat Buchanan personal and deny deny it not fact.
My fact in 1982 Ronald Reagan passed the greatest tax increase in American history true true or false this I think question -- as if it's one of.
The ones that Bob Dole's Faxon -- I don't from the president about true it's Capra.
-- out of you as well illegal I tell them how let me let me ask you -- that -- it now -- -- it's important point he was offered three dollars.
And spending capture every dollar in taxes and -- he got to reverse the.
The answer is true secondly.
John Kennedy it just was shown on television -- -- like the speech.
And you said a reduction from ninety to 71%.
Bill Clinton increased taxes from 35 to 39%.
Started with a 300 billion dollar deficit ended with a trillion dollar -- last -- and that.
That bill all of you and I think you on television -- predicted it would be a recession by that increasing taxes 23 million jobs later -- There are over said -- -- if if what you say is true plan.
That the Clinton -- -- did it why doesn't Barack Obama saying.
Let's have a backpack all of the Clinton tax hikes -- -- -- right -- back all of the Clinton tax increases on everybody you know really have a boom because she knows and it's hard when he knew it 2010.
You raise taxes on everybody in a weak economy like we've got annual show and get into the dumpster and that's what he's threatened.
The reason you know that the that's a fair point and that's the reason it's a weak economy -- Bill Clinton when you raise taxes from 35 to 39%.
And ended up with a trillion.
Dollar surplus conservatives like yourself.
Love the fact that we had a surplus rather than under the last two administration the pure lovely and Fresno about clean up this sixteen trillion.
Dollars now one question in my any one question.
Under Bill Clinton they cut defense spending from -- 6% of GDP.
-- 3% cut it half as a percentage of the economy that's why got a balanced budget he had -- defense.
We got to take a break guys stays right there million new look -- -- we will we will have by the way don't forget Bill Clinton had Newt Gingrich.
And the congress and I think -- diminishing and they were big part of it and actually -- -- -- now with Newt Gingrich I don't see that happening here aren't.