What's holding up a 'fiscal cliff' deal?

This transcript is automatically generated

Eleventh hour scramble under way congress makes one last ditch effort to avoid the clip.

Joining me now is Republican congressman James -- from Oklahoma and democratic congresswoman Marcy Kaptur of IO.

Both of them in DC and both serve on the House Budget Committee good evening.

We need are all right well -- -- here waiting for something to happen in Washington.

And I will start with you congresswoman -- what do you think -- Holding up the deal here.

Well in the house it was the fact that -- speaker Boehner plan B -- down it didn't even have a vote in the house.

And he passed the ball over to the senate.

Jim and I -- here.

We're ready.

Were not coming in to work at eleven like senator McConnell just said will be here earlier in the head in the house who were ready.

To receive whatever the senate is going to send to us we thought something might come tonight.

But didn't I'm very optimistic we can reach agreement.

And reach across the -- and get something passed for the American people not very political party but because it's the right helping.

But but congress when you have to understand that -- the American people have an 18%.

Approval rating of of congress isn't any surprises here we are.

Less you know just a little more than 24 hours before we go over this clip and this jet this still can't get done I mean that -- and how well Lankford let me go to you.

Let me what is it what is the hold up here you guys have agreed apparently in the house.

When we have actually we would -- the sequestration tax policy we passed tax policy back in August we passed sequestration solutions back in May.

We've actually waited almost a minute since minute.

For their responsiveness the -- and we'll see you after the election it's obviously well after the election.

This is something that could have been done last summer.

This deadline was set in the summer 2000 elevenths this is not some big surprise.

And so that's the frustration that's why we're here on the outside waiting for the senate response to be able to come back we were told that it would be back by accident obviously it's not back.

And we hope that they can get something back over -- typical legislative process house passes something.

-- answered back and we have a compromise between you two were still waiting for minutes and an answer to come back.

Well an attempt to -- -- view that the same question is the problem of the -- level at which we're gonna allow the the bush tax cuts to expire 2540500000.

Or is the issue about identifying.

Where we're going to stop the spending.

-- -- And in terms of the extension of tax benefits I support.

He extension to our middle class families.

The question becomes at the very high the end of the income range -- the middle class family gets anywhere between 223400.

Dollars.

Should those who -- billions of dollars are millions of dollars give 108000.

Dollars more.

Yeah what about you congresswoman -- -- respect with all due respect we're not talking about those guys right now I understand the negotiations are 40500000.

So we're kind of between 250 what's middle class going up to 400 maybe five country.

Isn't that when the wind is going to be drawn ultimately.

We think that the line is wiggling over in the senate I can't tell you where the line really is.

But I last week in the house and in I think Jim would agree with me.

We were I'm able to get a vote on -- and be because.

Speaker being there.

Was not able to -- out.

Some of those in his own party to give him a majority including others from my own state of Ohio where there's a huge divide.

Between the Republicans.

So thank goodness.

That the senate senator Reid senator McConnell.

It.

-- you could do that but with all due respect senator Reid hasn't passed the budget -- three years so you know if you -- -- one -- outlets call the other one congressman -- what what say you -- that.

Invent and that is the frustration with the Washington for the since we will pass something -- -- -- we pass all the documents that we needed to pass in May of this year.

And waited seven months we've waited three and a half years for -- budget tomorrow from the senate.

The major focus really outside his -- spending.

If the tax rates went up with a win over the fiscal cliff.

All the tax rates went up on every single American audience the estate tax everything we would still have a deficit.

Twice as large as the largest bush deficits we're spending a trillion dollars more a year right now than what we were five years ago.

At some point we as a nation have to resolve how to we continue to spend as much.

And so we can wrap around how we get -- spinning down no my tax nations can solve the deficit problem.

Why is it that there is a reluctance to identify where the spending cuts -- go I mean no one wants to talk about the sacred entitlements.

But at some point we have to if we're spending a trillion dollars a year.

And if you know the revenues that come and are simply going to be offset by the spending that is being a recommended by the president.

I mean the deficit is never resolved than our kids and our grandchildren.

Are good and going to be held -- That said this is most important way to reduce the deficit is to get everybody back to work so that revenue speak honestly -- again and we did not pay.

For the cost of the wars President Bush should have done that because both wars were declared during his administration's.

And that cost is enormous also the Wall Street.

-- crash has caused us to have to make huge payouts for people's health insurance for unemployment compensation and so forth because the whole economy went to -- Now of course spending would go up in that situation Nass why -- responsible legislation is so important so we can keep the academy growing.

These fits and starts that the congress has been -- -- can't hurt economic growth in this country -- even -- -- holiday sales.

Over the last several weeks -- because the markets on certain people don't know what your paycheck.

Of course they don't and that's why you guys with all due respect again should have been doing your job and you know congresswoman you say that we got to get back to work -- -- -- -- -- -- -- -- you would have gone home.

This is the kind of thing that needs to be a result people don't know if they -- -- -- you know what congressman I don't I didn't go to what did you say it.

You know -- -- declined to -- that's why we came back earlier this is a major budget issues.

-- -- mentions the wars were about 88 billion dollars of the one trillion dollars single year deficit.

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- In this were overspending in a lot of areas they have been addressed and may well we passed was doing duplication and fraud in government.

We thought that was at least an area we could find some common ground on.

That hasn't even moved in the senate.

You know -- made -- so frustrating process it's gonna get done.

And and you know what I liken that to -- -- you know engaging -- a nice conversation with each other but I but I happen to agree I think that there is so much.

A duplication.

Law and as a prosecutor race to prosecute Medicaid fraud I could come up with a fortune.

If we just look at some of the fraud there but.

Thanks to both of you for being with us this evening hopefully.

They'll be some kind of a deal -- worked out so when -- -- -- to prosecute some of those Wall Street -- we could bring a lot -- revenue into the government the united well you know what I think that what we need to do is recognize that we can prosecute everybody but we've got to stop the spending.

In any event thank you congressman -- -- and congresswoman kaptur.

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What's holding up a 'fiscal cliff' deal?

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