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Where aren't the president spend it.
There's a lot of bluster coming from Republicans but that's the saudis crumbling quickly.
Heavily every day we read about more Republicans.
Breaking ranks calling on the speaker to -- tax rates to rise on the wealthiest.
Where are -- the president spending cuts.
No longer the White House -- walks this process the closer.
Our economy gets to the fiscal cliff.
And that was the re mix of some comments from house speaker John Boehner there on the house floor and before that.
Senate majority leader Harry Reid.
Who's who casting -- -- different descriptions of what the circumstances in negotiations on the so called fiscal cliff that approaches on the 31.
December and this.
-- power -- and -- -- -- are wrong and here's the deal Internet just to -- this for you the president and the speaker of the house had another phone call.
Yesterday they're trading back and forth plans that don't seem to get anybody anywhere both sides seem equally unsatisfied.
And increasingly people think we may be getting ready to jump.
That means a tax increase for all Americans.
That also means the beginning of steep spending cuts that are -- and -- towards the Pentagon.
And is this really gonna happen.
You know who probably knows -- we'll tell us till Sunday.
It is Chris Wallace he is the host of FOX News Sunday with Chris Wallace fortunately.
And we thank you for joining -- -- badly -- show us a worst of the worst -- show if -- -- and show ever if David Gregory hosted that show be -- show ever I.
-- -- -- -- -- -- -- -- -- Regardless right might -- outside.
So the question is.
The president last I was very Barbara Walters.
And basically he was saying when he said to her taxes are going up one way or the other the Republicans can just choose whether it's on the richer on everybody and he seemed pretty Blase about the -- That's a card is gonna play -- -- -- -- -- is gonna -- which is to say to Republicans -- either way.
Taxes are going up because the bush tax cuts will -- at the end of the year so it's not like you can protect your -- friends.
That only question is a way to get him.
-- over with with middle class people and and obviously that is -- Greatest wedge because he could figure the party of lower taxes -- tax cuts and your gonna preside over an increase in taxes for 98% of Americans.
Having said that I'm of the Charles Krauthammer school and I know in this particular place -- is that it's illegal -- -- -- -- which is that he doesn't wanna go over the cliff either I mean it would be I think he would.
Win more than he would lose I think it would the blame would go -- -- Republicans and the Democrats.
Having said that it is a terrible way to start a second term it poisons this town.
It it it makes it even harder for him to get something else done in a second term.
So I don't think Jesus Blase or you know as.
-- Cavalier is the right where I guess how about the idea of going over the -- he doesn't want to do that either.
But he's playing his cards now and and the fact that there's this much communication back and forth and they seem to be talking every day or two.
Even if they're reporting -- -- things are.
-- -- to have frank that's a good sign up.
Deficit -- made here in the deal -- made and I'm not saying folks that this is a deal that you want but this is the deal to be made.
Is it that -- Republicans give on tax rates not tax revenue tax rates they're gonna have to get on the race whether it's all the way to 39 point six.
Or 37 or whatever but they're gonna have to given the right spot.
They need to get something in return what they need to get return has some serious spending cuts and particularly entitlement reform and that's the real question is is the president.
Willing to give them that I think they get that and they it it's kind of everybody's pain you know it -- -- -- but we made it for a mutual are.
Scoring session right now.
It's also I wrote my power play today which in American have simply for following me at Twitter you can have it it's right there for Internet I think -- I think I treated it today.
But I wrote today that I took core sample.
Very conservative as members.
And folks who or listen to.
Inside the right side of do Republican caucus.
And they just don't have confidence when you talk to them they don't have confidence in any deal that is predicated on them giving a tax increase now in exchange.
For entitlement reforms later on they just don't.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Mean they're -- if that's I'm talking about a deal -- there's peace where there.
You -- you make the changes now -- there is time to make some of the changes like raising the retirement -- the eligibility age for Medicare or slowing the cost of living adjustment things like that.
I certainly agree it's got to be more than a promises that haven't either you accomplished this where you have a hard trigger but some way that forces.
People to understand that this is this is real I know I I can certainly understand that because there have been cases the past.
Where the tax cuts happen now and you have the promise of those spending.
Tax -- -- and you have the promise of spending cuts in the future in the never come.
Now the for -- President Clinton to get to a deal he needs to give John Boehner cover.
And Karl Rove and others have talked about this that.
For Boehner as he talks to his caucus this in increasingly.
-- trusting caucus a caucus that thinks that they're headed over the over the cliff.
And headed into real trouble in the Republicans are very unhappy right now.
They didn't win the election I don't know whether you noticed that Internet.
But the the the deal.
Is that the president isn't offering Boehner any air cover on this to say that he's laying out some cuts -- that the public discussion.
Which is important for these members right what's being said publicly may not be what the deal is but Boehner needs a mayor covered are suggesting is members that he's getting the president I -- I.
Great that's a problem we had Chuck Schumer on FOX News Sunday and I kept saying well okay they.
He said -- want to negotiate against ourselves and I said but the Republicans -- they've they've put.
Revenue on the table and no and we just had Bob Barker may take quite a conservative Republican from Tennessee site I'm willing to.
Cave on a race to to to some degree as it.
Don't 200 Israelis have been we're not -- good.
Negotiate against ourselves we're not gonna say a word -- we -- -- spending -- entitlements and I agree I think gets.
It if the Republicans.
Even though in your right they lost the election I mean they don't have the leverage -- that if they if they have made this offer on revenue and to some degree -- officially on race.
He's really the president say so that a -- title.
I would ask you about -- quarter interview that you had because.
We've watched through the week -- worker is now running and gunning trying very hard to put something together today he's got a new proposal out.
-- he's going to have a new proposal out on the debt ceiling.
To basically he's gonna trot our the president one thing at a time.
If -- if this doesn't work we'll try the next thing.
You've covered him and known him for a while in this town.
Conservatives are getting a little anxious about senator -- further wondering if he's really on their team can he pull this off.
Well I mean it takes two to tango and in this case it takes what 435.
To thank god I mean you know it it -- He can't go by myself.
I you know I can understand the president's concern about the debt limit I mean I hated it you know we don't wanna -- how the situation we -- August 2011 and seems to me.
If you're gonna get a deal you ought to get a deal to solve all these problems at once it says.
We're gonna raise the debt limits what's not a political issue again what -- it's free here two years or maybe for the whole four years of the Obama presidency.
But that as Boehner is that you're gonna have equal and commensurate spending cuts to pay for the increase in the in the debt limit.
I can understand that whether he can pull that often -- -- can -- -- -- then what is it now about its twenty days or something.
That's gotten pretty hard.
That's getting pretty hard and what Republicans are now talking about what they're suggesting as.
And this is -- a process started by Tom -- Republican from Oklahoma that said look.
Let's extend the bush tax rates for the 98% for everybody except for the top earners let's go ahead and do that.
And move on to the next thing let's take this one bite at a time if you don't think you can get a big deal from the president.
Let's start knocking these things down one after another.
And let's get to a point of more leverage which is the -- him.
Well that's exactly what -- or other workers said as well on Sunday he said.
Let's let let's go for the 98% now yes in the taxes will increase all the way up to the Clinton.
Race for the wealthy the top to present.
On January 1 but.
Then you know he has no -- we're just on us on taxes and now he's got to come play -- -- court which is that -- that I that makes some sense.
I I don't think it did the best deal for either side.
But this is failing -- -- I mean it does seem to me it's it it it gives room.
Republicans and empowerment going forward.
I want to credit view with some things.
In -- -- which was.
Wallace choked me up.
On Sunday with the story of -- your family sees it looks like -- yellow lab it was a yellow lab.
And that day we we mourn your loss.
We -- know what it's like to lose of failing that I lost mine died -- Baines this year the -- But I would encourage everybody.
Every everybody out there to go to the FOX News Sunday page and -- the videos posted there it will make you it will make you like.
Chris Wallace but just even a little bit more ground that -- the point the point was just didn't do you know I was a tribute to Winston.
But really it's a tribute to the role that these dogs and cats I -- an announcement I'm not an outlet.
I'm just trying to save their cash people out there but that these past these furry friends preachers and let members of our family play in our lives and -- was related.
Well it was a beautiful thing thank you for doing.
Thank you and we thank you for being here okay -- we're gonna take a break because you need to compose yourself after that much excellence but when we come back.
Sander Levin he is a big deal when it comes to the Democrats that he's -- Democrat from Michigan as it relates to spending taxation and all that stuff we'll also talk about.
What's gonna happen with the unions and Michigan we're gonna talk about what's going on with Republicans and Hispanic voters will have power points we'll have Charles.
An embarrassment of riches for -- Internet so just take a second and get yourself together and we'll talk more when we come back system.
Let's pass some of those bills and then when the Democrats -- accepted.
Then let's vote present and let them raise the taxes in the house comes -- senate.
Republican senators vote no.
And it becomes like Obama care a Democrat juggernaut they get what they want.
We need to be bad for the economy and their fingerprints will be on -- -- ours won't.
That -- senator Rand Paul a very conservative Republican from Kentucky offering some advice to his Republican colleagues in the house saying you know what maybe it's time to let.
Democrats have their way.
Have tax increases and go ahead and do it as long as you're not touching it as long as the Republicans.
-- possible -- ability and this is power play things are getting kind of weird.
As we get closer and closer to the end of the year with no deal apparent.
To avert what would be an across the board tax increase -- federal income taxpayers and the beginning of fairly steep cuts.
To spending programs can't -- towards the Pentagon people are getting a little anxious and they're throwing out some different ideas.
So could Republicans -- the cliff could they find a way to make Democrats.
What the heck is gonna happen you know who somebody probably good to talk to -- that.
Would be the ranking Democrat on the house Ways and Means Committee Sander Levin congressman thank you for being with allegedly with you.
Well we'll see if that holds up to be true we know you're delaying your lunch for this so we do we we've we want to.
Get as much from you as possible -- -- -- is there always have been lunch anyway so we don't provide much -- we just tell the guests that there's going to be lunch and then after they get here it's a kind of a letdown but that's okay.
The question it is.
Is there going to be a deal on this thing before the end of the year.
I hope so because going over the cliff would be.
Not only in advisable dictating terms -- now do you see the danger here from new triggering a recession something like that.
Well CBO said that if we go over the cliff they were talking about three quarters later.
Would see the full of that to GDP would go down two point 9%.
By the way have -- the relates to continuing the middle class tax cut and only a tiny fraction would be affected it.
Ending the -- it for I think people is -- middle class tax cut it is most at stake in terms of equity but also in terms.
Of economic growth and TTP.
So -- by an idea that is circulating among Republicans now -- To go ahead and pass the middle class tax rate extension to go ahead and do the 98% now.
And then move on to a debate over the debt ceiling.
What you hear from the White House is they don't wanna do any -- now that doesn't included debt ceiling increase and we're getting into this.
If house Republicans were to come forward today and say you know what we want to take up -- -- plan.
And we -- to just -- the 98% now let's do it today and then move on to other fights is that something that would that could get through.
Showed it I think is they played games with suggest doing some time ago.
And it was -- for the country.
It was -- Four the rate of interest these you know.
We were downgrade we should not go through this weekend and that's -- the president has said.
He doesn't want that to happen again.
And he's proposed to take up the -- approach.
He would makes -- decision and it could be overshadowed overcome.
Good to play.
Who is this the debt ceiling.
Is playing with fire -- -- -- would be an untenable negotiating position -- we are burned before.
And I think we shouldn't be burned again so I think the prison is right.
To say we should not -- net him put that country.
In that corner.
Sander Levin we hope you get a good launch today and it's not gonna be here but we hope you get it someplace good congressman thanks for.
For making time for us today -- things tripping.
Okay we'll hope he gets a sandwich somewhere we thank you now we're gonna take a quick break but when we come back we're gonna talk about the right to work a battle -- in Michigan.
The congressman's home state.
We will talk about what's going on with the Republicans and immigration and Hispanics whether they can figure themselves out on that subject the B power points it's all here for you Internet so stick around.
Is what democracy looks like or at least that's according to members of labor unions in Michigan.
Who say that a pair of right to work so -- as we should -- for -- democratic friends so called right to work.
Laws in Michigan.
That they say are trampling democracy.
Because they don't allow.
Unions to compel them the payment of dues to them from employees who wouldn't like.
To pay dues to them inside shops that are so called close -- this are quite welcome back -- talk about -- We're gonna talk about what Republicans are trying to do to get right.
On immigration and with Hispanic voters.
And could you think of two people with whom it would be better to do that have been -- slap his former White House political director for George W.
He's a Republican political operatives like strategist slash -- -- slash guy.
And Christiane -- policy advisor at the new democratic network.
Which is a center left democratic think tank that's trying to -- forged the old Clinton Era third way concept.
In American politics.
Start with you and I just -- quickly on this subject.
Matt labor unions have been on retreat.
And places like Wisconsin and in other places they've had national issues and they've been shrunk down to where government workers -- the preponderance to see this happen Michigan.
What's the significance of this not just in terms of the practicality of the state economy but in terms of what what this means for unions and -- -- yeah I think.
It dissolves the real achievement for those folks on the other side -- unions -- these issues but it's also just symbolically.
A real got punched in the -- just hell.
By their comments in the press and what they're saying -- -- Michigan is kind of at the apex of all the strategies.
And they've lost and why they lost they lost because not competitor to the states.
You know -- federation these fifty states are competing against each other in the bottom line is this -- has high unemployment they're losing corporations left and right.
Houses there's being souls -- auction for nothing.
Because Michigan is pretty much an economic meltdown you can have democratic mayors across the states and we've got to do something different.
To get economic developments -- this is a massive loss for the unions to huge political win for Republicans because.
Get a cash cow for unions is this idea of mandatory union dues and that's starting to go away state by state is the big victory -- up.
It is absolutely.
A big loss mind.
For the actual -- -- -- -- the reality is you know the governor says this is a job promotion to job creation moving easier promoting.
Two or three jobs for a low skilled -- middle class worker and those are both -- Taco Bell minus benefits minus oh -- got a that's on Monday.
Yeah absolutely there's some political stuff nationally here but the problem here is this is a continuation.
Billionaires coming in the states affecting the legislature.
For anti worker anti.
You know anti.
Low skilled workers having the ability to have upward mobility and so and so forth that's a problem.
For work a middle class workers.
Everett as we stipulate this is not been a good season brilliance.
Whether you think that's good or bad for the country things are the things are not going the right way for organized labor Americans you guys -- could.
I think organized labor is gonna tell Americans unfortunately Israel is doing doesn't do any good things are gonna happen in the trend.
And it has -- really quickly because I'm sorry.
-- the Republicans have a Republican strategy -- from resurgent republic has swing state pulling out -- Hispanic voters.
If found out that while Hispanics agree with them a lot of issues.
Immigration proves to continually be a sticking point.
-- For Republicans.
If they could ever conquer that issue if they could ever deal with the issue of immigration it looks like in the swing states with Hispanic voters they have a lot of places to go.
Well when you're absolutely at the bottom -- -- I have always I've done that I'm 48 yeah.
Yeah Matt -- you but you think there's a future that we -- we can solve this problem on immigration and departed doesn't have my heart desire to get every Hispanic voter.
We have to do a lot better and we can't get 38%.
Of them -- how many they have to get by the way and it's more important chip equipment on and Florida would be good very doable very doable OK gentlemen we thank you for your time today good fun.
Now -- more good fun and Jonathan Hunt is up next -- -- you like that and how about some power points.
Bad medicine and those are your power points today.
Republicans are engaged in a -- -- stumble right now in which they're going to try to offer the president.
In exchange for cutting benefits to popular welfare and entitlement programs later -- not exactly -- political.
Moon shot that's not exactly the best thing.
That could ever happen yes but here's the second -- many.
By congressman Paul Ryan and others say it's a patriotic duty for Republicans do everything that they can't try to get some entitlement reform right now whatever they can do because they see the greatest threat to the future of the country's natural that Medicare is the greatest driver of that -- -- What would you do to try to get there.
But here's your third power when it's time for a reality check matches for the Republicans but for the Democrats in a deeply divided country where people have such starkly.
Different ideological views the likelihood of a big deal right now that would address this sounds increasingly remote it may be better -- as we talked about yesterday do the work that's in front of you make the best he'll make the best solution that you can't on the issues that confront you and try to live to fight another day that goes from both sides as your power points.
And now it's we like to do every -- The word from our friend Charles.
It's late in the game to win the argument I think what you have to do.
He's emerged with your trousers still on.
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