This transcript is automatically generated
All right tonight apparently US senator is telling President Obama it's time to start Manning up on the fiscal cliff.
The -- attack coming from South Carolina senator Lindsey Graham.
So is a senator right this president need to do that's house majority.
When Kevin McCarthy he is joining us tonight which I'm so grateful that you came on the show because there's a very public negotiation going on.
Right now and in some ways it feels like you could read one article and think that we've.
Made progress in Washington get into a deal and then you read another piece and it's two steps -- ear here you tell us forty think we are right now.
Well don't don't read that -- anywhere close to negotiations of finishing anything.
There is nothing agreed to they are just beginning to talk I think -- this the president wasn't in Washington negotiating he was in Detroit campaign.
And the senators right.
This president needs to get off the campaign trail.
The election is over and now it's time to cover.
What's more important here what senator Graham is talking about the president has to talk to start talking about spending cuts which is really getting us this problem.
We've already had two months of the new fiscal year and we're 292.
Billion dollars in the deficit.
And there's some interesting numbers do there.
Revenues have increased 38 billion dollars they've gone up 10% now why that number is important.
If the president is able to raise the rates that he wants to only collect 31 billion for the entire year just on the rates.
But the real problem is spending has gone up 16%.
More than 87 billion dollars so we kind of start looking at where we gonna cut spending he just wants to increase taxes to keep spending.
And -- it's gonna be in another mess next you'll be asking the same questions that we're asking today.
It adds tax increase only buys you unlimited amount of time as long as -- spending.
Keeps bait the spending is more than what you're bringing an -- I don't understand really what he was campaigning for today who is he trying to convince.
He's not going to be at a condensed anyone on the Republican side -- and I wonder if but for all the reports you read about Republicans being.
Divided and unable to come together the Democrats certainly do get a pass where they get that -- -- hide behind the Republicans who have to have these tough negotiations.
You know -- the real problem -- it's like Republicans negotiating with themselves the president spent the Pennsylvania Detroit.
We gave him an offer right after the election to start one to the negotiation we put out what we could talk about.
He took three weeks before he responded and then he responded with an idea.
About his budget where there wasn't even one Democrat vote for -- Ford in the house -- in the senate Democrats wouldn't even vote for.
He's doing everything he can't just slowly walk us off the cliff.
But act like he was working towards it.
That's the problem that's the frustration.
You hear and -- and look this is our moment this is our time to do it right and he's just looking to raise taxes which one.
Won't solve the problem put us further in the hole but could actually -- jobs which every report says it was.
So there's many schools of thought but the two main ones would be Republicans.
You just need to figure out a way to back.
And get work but President Obama get this done American people wanna get it done they don't wanna -- their taxes raised to just work something out.
Then another school of thought and it's actually quite -- -- stronger that I thought that it would be at this point which is you know what.
If they won't come to the table on spending cuts.
Let him -- off the cliff.
We're -- where do you fall on those two schools but -- coming up but right on the spot but I just curious.
Where you guys think that and they want to get a deal but if it's not possible do you think that -- let the president take America off the Clinton.
We want to solve the problem the only people I hear publicly talking about taken -- off the clip unfortunately is the secretary of the treasury.
Or senator Murray said on the floor she's going to be the new finance chair that's the wrong attitude.
We should say from one product we've had bigger problems of this in American we've been able to rise to occasion we should solve the problem once and for all and what that means you have to do.
You're gonna have to find real spending cuts that's what the president doesn't want to talk about he says he wants a balanced approach where there's two and a half to three times as many spending cuts there are -- revenue.
He won't even talk about that he wants to walk us off the clip we don't wanna go there we want to solve the problem and that's why we're fighting to solve it.
And we're gonna make hard decisions and -- gonna put America better in the future and we even -- today and that's what we're trying to do.
So -- -- said that after the election in November the Republicans had a weaker hand that's not -- -- true in the house and it's good for the Republicans that they have the house.
When you if even if you had a weak hand I think the president gave you an amazing card to play.
And that was when he asked for unlimited power to be able to raise the debt limit do you think that actually works in your favor and trying to get a deal.
-- -- a lot of people miss read this election this is the first president since 1832.
That won reelection with less votes and less percentage.
This is the second largest Republican majority since World War II larger than any time in the ninety's when Newt Gingrich was speaker.
And we ran on what we stood for and you know we did last summer because we didn't want to be in this fiscal -- We passed the bill that froze all the rates make the cuts they made the difference but it's sad and to the senate.
So you could argue both sides who won and who lost in this election.
I think from the perspective where the president thinks he's gonna go through and kind of spiked the football here.
He's going to be in trouble one for legacy because this economy is going to go down.
And Republicans are trying to be very reasonable here but actually do what is right to solve a problem if he can't talk about spending cuts you're not gonna get out of this mess.
Are you worried at all about the Republican reaction.
-- the agreement that Boehner first on -- table -- -- raise revenue by closing loopholes on the rich.
But this issue about the rates that it does that just come down to that or do you think it's bigger.
And whether or not we can actually get entitlement reform we can't do it three weeks so how serious is the president about doing this because the Republicans are on board.
That -- you actually are going to need the president to leave on entitlement reform to bring the Democrats along if we expect to get anything done.
That I'm worried for America.
Ronald Reagan went to Tip O'Neill and was able to solve.
A lot in Social Security give -- few more years just as Bill Clinton was able to show the leadership with Newt Gingrich and reform welfare.
The difference here is we need a president the shows leadership.
You know -- scariest to me.
You look at America today.
Is it fair that any American pays more than half their income to government taxes look.
If the president has his way to 39% federal tax then add on his health care tax then if you're in Bakersfield California.
You pay a thirteen point 8% tax -- well into the 50% before you ever pay a sales tax or anything else.
And that isn't solving the -- that's paying nothing down on the deficit the revenue that this spending continues to go up by more than 16%.
And -- in a worse situation than we were before and people have less money they have less opportunity to hire people and we have less job well.
That is the wrong way to go that's why we beat this president to show some leadership.
Republicans have showed the leadership by passing the bills and proven that they can do it taking the tough votes to put America back on the right.
So -- -- December 11 that means LB twenty days until the deadline to actually get something done I think everybody would like to get.
Some sort of agreement before Christmas -- -- know what's going to happen with the economy.
If you had to -- right now do you think you get a deal.
I'm hopeful that we can't let I -- -- believe -- Winston Churchill always said about Americans can always count on us to do what's right after we exhausted every other option.
That you know republic public and haven't held back I know it's only twenty days away.
But you know what we pass the bill last summer that would solve this problem freeze the rates but make the cuts to put us on the right -- -- got this huge problem in the senate that you can't get anything you can't get the senate democratic lead led by senator Reid to.
To move forward on anything that you -- Timmy and it's unfortunate that this -- such as.
Zero sum game.
Political game in like ten US patent deal.
If nothing ever happens in the -- I feel as though we're negotiating with ourselves and the president's going around campaigning.
But when we passed it in the summer we thought the senate would do their job maybe the president was campaigning during that time we understood that but in November.
The campaign's over it's time to govern the president needs to get engaged and he can't think this is gonna happen on -- -- Every other time we've been able to do something big it was the leadership of the presidency.
Able to do it.
I'm really surprised it didn't have went missing I'm vice president have a bigger bolder plan -- creative plan because they had every opportunity in the political capital spend it seems to me that I don't waste it.
The congress and they picked hasn't had any votes even on the democratic and -- -- congressman thanks so much.