What is the 'middle ground' in fiscal debate?
How can both sides reach compromise?
- Duration 3:32
- Date Dec 7, 2012
How can both sides reach compromise?
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More on the fiscal cliff let's bring in Bob Cusack is in managing editor of the hill and he joins us now thank you for joining us.
Thanks -- out so we just heard speaker Boehner saying in part that the president's plan is -- slow walk for our economy to the edge of the fiscal -- And if if the president doesn't like the Republicans plan.
He has an obligation to send them one they can pass both houses of congress.
As quickly as possible so what is the middle ground here.
Well they're nowhere near the middle ground and a lot of posturing going on at the -- -- got released another week or two and and the sticking point is that it's tax rates and and that's the -- was asked a question of whether he could be flexible on that.
He he didn't really indicate that he's gonna do that but but Democrats say -- up -- election win he must do that that doesn't mean maybe -- not 250000.
Maybe it's higher where they protect small businesses between 250007.
-- 30000 are a million.
But there's gonna have to be some type a compromise but if Republicans are gonna go for tax rate increases they're gonna have to get significant returns as far as that entitlement reform so.
That's the rub right there.
And then let's talk a little bit more about entitlement reforms as it stands right now the president's plan -- calls for one point six trillion in tax increases.
And at roughly doubles.
The near what was previously suggested and 200 billion in new stimulus spending so what guaranteed cuts is the president offering.
Nothing yet -- he put a lot on the table in the summer of 2011.
When it was Boehner again -- Obama they almost got a grand bargain he talked about raising the Medicare eligibility age to 67 over certain amount of time.
Making some changes to cost of living.
Payments for Social Security.
But down right now there's nothing on the table now that was Obama's opening -- Republicans were -- at that they knew -- they he wouldn't give them exactly what they would accept.
But but a few of them said they were insulted by that.
But -- once again this is that you don't want to negotiate with yourself you wanna start over here and they get in the middle just to set up some type of deal but.
Don't expect any deal until Christmas at the earliest.
All right let's go back to this tax -- -- talking about president -- -- he wants to raise revenue by taxing those making.
Dollars or more a year race for top paid Americans rise from 33% two and 35% today to 36%.
And 39 point 6% I believe.
But that would only generate about 85 billion a year according to the Treasury Department the federal government.
-- spins that amount every eight and a half days -- think that the point is purely political for the presidents since that's what he campaigned on.
Well that's -- speaker Boehner said is that you know Washington has a spending problem not not tax -- -- but speaker Boehner has a political problem and that.
Their party's guy lost the election itself.
There is no doubt about it that that -- the math on both sides -- far apart and if you add up all the revenues that only scandal.
Last for eight days of funding the federal government but that has to be compromises and so we're Republicans are gonna have to give some ground not on taxes.
Whether it's 800 billion or one point six billion maybe one point two trillion -- in that range and then of course -- whatever deal they reach they have to get the votes for.
And that's just the beginning -- this fiscal cliff deal if they reach want that it just the beginning of deal making because it's not gonna solve the problem.
There's going to be more talks going into 2013 on tax reform and dealing with the deficit further well Bob Cusack thank you so much for joining -- -- appreciate it.
Thank you talk a little.