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Obama lobbies big business as ‘fiscal cliff’ looms

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    Penny Lee and Michelle Selesky on the chances of a deal

  • Duration 6:24
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School cliff.

Let's get straight to that cliff -- our political panel of the day Michelle Celeste.

DC bureau that along side penny leave former senior advisor to senator Harry Reid.

Hello to you both have a lovely to see you.

Yeah then let me -- -- you Michelle.

The president has just apparently told business leaders in the city where you -- right now.

That a deal is possible within a week.

If only Republicans will be a little flexible on taxes so should they do that.

Yeah Obama has been actually very good about utilizing the business community in -- -- business leaders this morning.

And -- governors yesterday but and he was on Bloomberg yesterday her on Tuesday as well.

Utilizing the business community in applying pressure to Republicans.

And any budging on tax rates.

Unfortunately for Republicans elections have consequences so they are gonna have.

To give somewhere and as far as increasing tax rates on people earning 250000.

Dollars or more.

I don't think they're gonna be that flexible.

Is it likely that they may increase tax rates.

On people earning a significantly higher income may be.

But then again speaker Boehner has offered a solution to increase tax revenue without raising rates which is what our party is is adamant about so.

If Obama can be a little flexible on that we'll see but I I think it's going to be a stand up for a little while yeah.

And penny -- -- has to come down to tax rates actual flat.

Race that's -- we have to talk about whether it's those earning over 250000.

Those earning over 500 when we where do you draw the line that has to be something.

-- the president is anything to get something on the tax rate this is indeed he has campaigned for.

For the last eighteen months he won the election Democrats increase -- margins in the senate.

They picked at eight seats in the house -- this is something that he ran on in the American people support it is it should be clear.

-- -- nothing should be a surprise that he is asking Wendy's agrees to it to be increased.

And we saw the consequences we saw the actually what happened when they were.

At 39 point five under under Bill Clinton in that was that you have robust economy -- devastating it didn't it actually created 23 million new jobs so you know all of this topic is -- -- -- be absolutely devastating to kind of facts just don't support.

-- that.

So the president has been out there he's been absolutely clear.

The last time he allowed them to -- -- he -- that was the last time so it should come as no surprise of the GOP that this is something that the president want.

But if our ultimate goal is deficit reform and getting rid of our deficit there has to be something beyond just raising taxes at all because what -- want -- he got me Michelle.

We need it.

Reform the tax code broaden the base.

Entitlement reform you can't be serious about deficit reduction unless you're talking about -- -- reform slowing the growth of Social Security Medicare Medicaid.

Preserving it for future generations it takes -- something like 60% of our budget so any talk -- beyond.

Tax -- -- include that.

I hesitated to correct yeah and I -- that the president hasn't been just 01 issue coming he has actually proposed into things other things such as in talking about.

Increase seen lowering -- rates any in expanding the base those are things that he's talked about over in a time crunch right now.

And there's only so much bandwidth in -- the congress which can deal with and he says the most immediate thing right now with the expiring is on -- whether or not the rates will increase or not and he is saying he is not gonna -- another extension of -- bush tax cuts on the on the top 2% just Michelle they want to do that.

Michelle the president -- to have the whip hand in many ways that's certainly as far as public opinion goes -- all the polls was seeing.

And that this told that the Republicans.

Might try to use the debt ceiling and whether -- not they'll vote to raise the debt ceiling.

As leverage here and president says that's a bad idea for America -- is that a bad idea for Republicans to play that game -- No look we had this to stop somewhere feels like Groundhog Day you're going and it's not easy cyclical thing that's so important.

Do you study saying you know that bit raising the debt ceiling.

Have to be part of the solution to the fiscal cliff that resulted from the deal to raise the debt ceiling we're going in circles nothing here has been done to -- to.

Our deficit which -- in the trillions every year so raising the debt ceiling isn't the answer to that and there has to be something else.

That lets us know we're gonna stop there's this crazy cycle of just racking up debt and deficits every year and I don't think.

Just raising the debt ceiling is an answer to that -- -- offer something.

Well let the president get up or something.

Obviously and what he said receive access to the debt -- go over -- go into the administration and that is not being left of votes in congress whether I cannot continue any administrative illegally.

Can -- -- in -- to be politicized this.

On the on the debt ceiling that is a very very dangerous thing to be playing politics in the -- Republicans saw.

The consequences of what happened the last time and I don't think anybody.

Wants to go down that path again and if there were in -- they want to go there -- Dire political and economic consequences for.

You know playing with this debt ceiling so it is something that should be dealt with now as we all know that congress does not move and -- there is an absolute deadline.

And for the Republicans are saying you know let our hand is weak right now so let -- wait for the disciplined in our hands will be -- we can do even more political -- every car that clay is not physically.

Response OK just quickly from both he Wear a little short on time -- because -- a late stop and Michelle first.

Do we get a deal.

By the time -- -- we need to deal and will it be a comprehensive one what's your predictions that is plays act just as briefly as you can.

Yeah I think there's going to be two steps to -- whether or not we did before January 1 or after two weeks after I think it's going to be somewhere in there let me say it is not necessarily cliff but a slope.

But -- -- do think there's going to be a deal at least -- -- -- element of and then second part entitlements cruised through next year and next summer kind of we'll get it will get a deal by January 31 it might be at 1159 but we will give it and you hold.

Both forehand because we all understand any both sides do understand at some point they have got to exercise leadership and put this -- -- stability back into this economy.

All right great to see you both thank you very much -- leave former senior advisor.

To senator Harry Reid and Michelle Celeste.

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