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The US going over the fiscal cliff instead of a temporary Band-Aid for the problem may teach a valuable lesson - and be the best thing for the economy
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It is on edge everyone -- it dive off the fiscal class well.
Almost everyone one economist says we need to go over the cliff all the -- a senior fellow with the Manhattan institute and he joins us of a thank you for being with me tonight.
This is an interesting strategy and it went up my -- colleagues tell us on the five Eric Bolling says go over the -- it's the only way we're gonna rain in -- reckless.
Spending that has no regard for the Americans are working very hard every day but those -- and you're pretty.
There are afraid that paycheck is -- going to be further dwindled away.
-- up next year when this electorate is -- able to come to a responsible.
Compromise.
I think that's totally right Kimberly you know in November we voted for Obama size super size government.
So what's the fiscal -- the fiscal cliff is the -- it's a tab after the book day of all that spending.
And so -- irony is that it.
Yet to everyone in the belt away thanks -- well it's so terrible the we're going over the fiscal cliff.
Because it's so irresponsible.
Well ironically it's the opposite the whole point of the fiscal cliff is when the fiscal -- is -- we jump over it.
We're getting rid of all the accounting gimmicks all the temporary extensions of things that allow congress to pretend.
It's being fiscally responsible when it's not.
What's gonna happen -- over the fiscal clip a lot of taxes will go up -- local and everybody not just that guy around the tree who's paying for everything but everyone will have to pay.
And I think at that point Americans realize you know what all this government there were voting for actually costs us money to.
Well that's a thing so when you look at let's go through this -- -- over the cliff they don't reach a compromise what's happened they can't afford to still keep spending like this won't spending.
Have to go down by virtue of a compromise not being -- Well spending will go down a little bit because of this sequester the defense spending things that you talked about on the show quite a bit.
The big chunk of the deficit reduction comes from tax increases.
Also the the end of the unemployment benefit extensions that have been going on for a while the payroll tax holiday.
And the Alternative Minimum Tax which is gonna grab more and more peoples -- the point is.
You can have less subsidies for lower income people who are unemployed today and also higher tax on middle income Americans so.
You know it's not great none of us want tax increases but at the end of the day trillion dollar deficits are bad two trillion dollar deficits every year for as -- as far as the eye can see.
That's attacks on our kids our grandchildren on people who save their whole lives and done the responsible thing so trillion dollar deficits -- -- to and I think that's we got to understand.
Yes not good leadership -- -- to pass the buck especially on the future generations they don't deserve to pay for our problems and irresponsibility.
We think the biggest -- problem is with raising taxes on the wealthy is so.
Easy for the liberals as saying I would say you know what raising taxes on the rich punish Sudan.
Well you know the president like likes to say that the rich need to pay their fair share for the tax burden of the United States well the funny thing is.
Actually if you look at all the developed countries in the world.
The US tax code is the most progressive in the entire developed world that is to say.
The wealthiest Americans -- a larger share of the tax burden in the US much more so than in European countries.
So the Boehner plan B in some of the things that the president and the Democrats want to do that would make that problem a lot worse and if wealthy Americans paid that much more the tax code than is normal for developed country what ends up happening.
The middle class feels like.
They can have all the spending but not pay for it themselves and so I think going over the fiscal -- at least.
Were all share in the responsibility.
Of pain for that big government that we seem to want.
Right now a lot of disappointment of course about Boehner is that -- not being able.
To be passed in the house so we'll see what happens the next few days before 2013 hits us and probably hits us -- -- -- right thank you so much for being with us.
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