Stare down in Washington over 'fiscal cliff'

This transcript is automatically generated

For -- as you've been reporting all morning it is stare down time in Washington.

President Obama and the Democrats vs the house Republicans in the so called fiscal cliff.

You know after weeks of negotiations publicly at least talks have stalled as the two sides battle it out over tax hikes and retirement reform.

But what can really be done about what some consider our nation's out of control spending.

A member of the house majority Pennsylvania congressman Tim Murphy joins us now is chairman of the house oversight and investigations subcommittee.

For the energy and commerce committee congressman good to see you in person -- agree with -- to New York this morning.

Putting is gonna -- I mean President Obama says he wants those tax hikes to go up on the wealthy the Republicans say no put -- -- line.

Well we both better get together and come with a solution that's what the American family wants in on all these other issues.

We have to remember it's what takes place not the 30000 foot level within the beltway it's what takes place the kitchen table level.

And that's for people are very concerned.

Will they have a job tomorrow with -- shouldn't have a job in the future.

And that means we have to deal with the deficit we have to deal with the spending.

We cannot continue to do this the president's.

The issue wanted to have unlimited power to raise the deficit when every once beaten is like taking the breaks up the car and hit the accelerator and headed towards a cliff.

I think that thing will not be in the social issues.

But the other literally have to come up some ways and now -- Republicans have offered some things to deal with some revenue.

The president has these in the discussion go on and on.

And we're gonna have to solve that overall as you say I mean this deficit spending or sixteen trillion dollars and goes up and up and up.

And it's gonna affect us -- the facts our children our grandchildren what realistically -- -- -- Happening -- is there any way that the spending can be slow down without may be thrown us into recession.

Well this spending can we slow down particularly with regard to government spending let's -- keep this in mind over the last five months.

When you look at their upward swing now the improvement in.

People being hired unemployment rate.

73%.

According the Department of Labor 73% of those new jobs is federal government state government and local government.

We won a seat in the private sector and that's with a private sector.

It's really very worried this is where people had their jobs this where people go to work every day and that's where they're still hesitant.

They are looking that the government has to a stop spending because a big part of our increased spending its payment off the debt.

And people know -- that's gonna continue more taxes and that's gonna hurt him do you think we can pay off the debt and how do we get to that point.

Well it is a matter let's let's say for example the proposal that speaker Boehner said we want to deal with with some of the entitlements.

With with -- with some of the the deductions.

You know you can have about whatever tax -- you want but you can deduct so much of that and still in a low tax rate we haven't -- the problem.

I think it is a reasonable thing to offer the presence is look we recognize there's a lot of loopholes and deductions -- we ought to close often limit that.

I don't think we should do with with -- deductions but other elements there.

You that's -- house mortgages and -- lot of people rely on on -- -- your mortgage you need to should be a limit -- matter who could that be an ability to reset for example is an annual -- what they can be and so if you have two -- three homes well -- not to go to -- all that -- 21 home and you can -- you can set a level for that.

That's every and so have lot of revenue of course the president keeps saying tax rates tax rates tax rates and -- theories trying to tap into.

Some of the anger and thanks to presented during the but there during election if there's anything I've learned in my 35 plus years -- psychologist.

It's if you trying to people to act out of anger.

And rage you're gonna end up making some bad mistakes and what we have to look at is this still -- is still the issue is -- the deficit.

And the issue is getting people back to work.

You know -- when the president talks about it we don't deal with its fiscal -- the average -- would see their taxes go by 2000 -- -- let's remember.

In the last few years they're gasoline bill has increased by 2500.

Dollars a year.

So we need to begin with natural gas issues and oil and gasoline prices and energy project area not only member of congress -- also and medical.

Actor in a psychiatrist who so maybe you can get anybody on the couch -- down in Washington you mentioned taxes taxes taxes is an interesting take.

From columnist.

Robert rot at the Arizona Republican gonna get your reaction to this he said quote.

What Obama is really trying to do was force Republicans to finance to higher taxes and increased barring the size of the federal government Obama thinks is appropriate.

And Obama likes his government super sized Republicans in the house undoubtedly won't and shouldn't agree to finance Obama level spending.

After all they were elected in 2010 to put a brake on Obama's spending and were returned to power in this election the Democrats say but the president won.

-- election so -- your point of view who is right well the president also continue to talk about reducing the deficit.

He is aware of this serious problem is continuing to grow.

And we do have a role as the house leaders are constitutional role to put the brakes on spending.

And that's something we're gonna continue to push for it has to be done everybody seems to get it in Washington and -- -- do you think -- will be a deal.

I think will be a deal wanting to be won before the end of the year we have to can we have to do it -- congressman Tim Murphy congressman thank you.

Great to see in person that's -- -- specific congressmen and nice to see you well the.

Watch Live

Stare down in Washington over 'fiscal cliff'

Details

Clips

Editor's Picks

Sen. Marco Rubio outlines future of immigration reform

Buchanan: IRS is a 'rogue agency'

Massive fire breaks out at fuel-depot in Brazil

Holder's changing tune on involvement in journalist scrutiny

'The Five's advice for newly minted college grads

Cavuto: We're in a global war on terror

New information about the London terror suspects

Travis Alexander's friend: Family wants Arias on death row

The new face of US drone policy

Investigation into death of US engineer in Singapore a sham?

Former President Bush hosts wounded warrior bike ride

New developments in Maxim model murder trial

Transcript

Recommended