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Welcome to America live happy new year everyone -- Megyn Kelly.
We're now learning more about the new budget bill that congress passed late last night remember this started as a debt reduction deal.
-- those days.
But it ended up with billions of dollars -- spending and a price tag that will increase the nation's debt so -- didn't work out exactly as planned.
The bottom line this law will produce 620 billion dollars in new tax hikes.
And fifteen billion in budget cuts.
Those you can be jacket -- that is 41 dollars in taxes for every one dollar in cuts.
And according to the Congressional Budget Office the so called debt deal.
Adds nearly four trillion dollars to federal deficits over the next decade.
Largely because of the extension of lower tax rates for almost all Americans.
330 billion dollars of it is also an increase in spending increases spending more more spending.
Plus congress packed in some special -- for the railroads the car racing business and some friends in Hollywood who have some deep pockets.
Crist I want -- -- Fox News -- politics editor and host a power play on foxnews.com.
Happy new year.
Happy new year to you -- clip.
Minutes after it Welling up the -- we went there and now hot on our kind of -- that but they moved the clip from the -- -- it and we place.
-- postponed a part of it but in any event but there's big tax as it hikes for the rich there's other tax hikes for -- 177% of Americans.
There's more spending there's four trillion more going into the deficit and now it's like.
-- people in that town -- nuts everybody knows that.
But accurate -- saying your power play -- -- before we get to this special things for Hollywood.
In your power play com today we did learn -- very important.
About second term Barack Obama.
And what is that it.
That he's going for it and you saw the president if you think about this -- back when this was designed to be a deficit reduction deal.
As -- trade deficit increasing deal.
That the Republicans came back after the election and said hey how about 800 billion dollars in new taxes new -- tax payments from rich people.
And the president said no because unless you're willing to raise rates that's -- close loopholes that would have them pay that money.
He wouldn't go for it and he made it very clear that he would take -- up to the wall.
Moderates and this sort of -- -- of Washington said well maybe there's going to be a big deal and here.
President said no as a matter of fact I'm going to take you right up to the wall and I'm gonna get everything that I want.
And he did he pulled it off and he was even willing to give up 200 billion dollars.
In tax revenue from these wealthy top earners in order to win on this ideological point that it would be rates not payments that went up.
Republicans need to be aware as they go forward into the age of a second term Obama is -- them to the -- every time.
-- but you haven't spoken to Mitch McConnell.
Mitch McConnell the Republican leader in the senate now has got some tough talk for President Obama and he came out and said the following last night.
Now it's time to get serious about reducing Washington's out of control spending.
That is a debate the American people want it is the debate we will have next and it is a debate the Republicans are ready floor.
So now that he has no leverage.
That he he thinks he's going to have a real discussion about out of control spending I mean you tell me Chris how likely is that.
Well we have the we have the debt -- we have the debt ceiling is next and that's coming up.
And if John Boehner wants to stay as speaker of the house and the thing he's gonna have to tell his members.
Is that he's gonna play just as hard on that is the president played on these taxes.
And that he's got to be willing if he wants to do this.
If if what Mitch McConnell who was the architect of this deal on the Republican side in the senate.
If what he says is going to be true that means -- Republicans have to be willing to do some pretty terrible stuff like.
Get the blame for shutting down the government get the blame for throwing the economy into recession really do those things to the question is this -- Are they willing to do now.
What they want willing to do before that -- is -- which it was an open question.
Well it's not maybe it is I don't know if past is prologue and -- now on the money front it did it not everybody.
It wasn't just the rich mother the rich -- more -- but but there were some people who got some good deals.
At of this fiscal -- deal and it includes a bunch of Hollywood producers who apparently received 430 million dollars in tax benefits.
Thanks to this extension of of -- tax benefit and it's an expense rule may be loud there they allow them to expensive to fifteen million dollars of cost of the projects.
And how it works but the bottom line is Hollywood got a 430.
Million dollar kiss from Washington.
Is that it is that -- President Obama thanking his donors they -- is that something that we just do in every year because there's pressure from Hollywood to do it.
Well they have a very powerful lobbying arm in Washington and they are a big -- this news the movie business or big patrons of the Democratic Party and of the president.
In this is what happens -- you mentioned NASCAR.
You mention -- I believe the.
Check -- -- -- seventy million dollar yes.
And electric motorcycle makers are getting a four million dollar kiss from Washington and in that in this deal.
And what happens when you run crashed up freight train like this at the very end and you do it wrong when you when you make law.
That in correctly.
When you do it it in a Korean a dash at the end of the year trying to get it done what happens is there's lots of nooks and crannies for people to stick things in for their patrons.
And for their friends and it goes against.
What Republicans said when they came in which was we're going to be slow we're gonna be deliberative we're gonna look at things carefully we're going to read the bill.
This does this did not come out looking like a bill that had been closely -- -- It's nice -- we are off we're just with our families around Christmas tree up.
I think and think about this nonsense and -- -- to read the 400 emails coming in from Chad program our Capitol Hill producer.
Every day telling me that every -- on -- on how to fit fiscal -- is getting near.
Here we are again.
I don't know what Chris it's -- -- it it's tough to have the holiday spirit when you look at what's happening inside the beltway these days.
It's true but at least we've got each other -- and so what will get through somehow.
Amen to that brother thanks for being -- part of America live.
Looking forward to many more of these and play thirteen.
A little more for you now on a few of the industry tax breaks found in this -- 331 million is going to railroad companies to maintain their train tracks.
The federal government is refunding 222 million dollars to Puerto Rico in the US Virgin Islands to cover excise taxes for -- produced there and -- to the mainland.
And roughly 59 million dollars will go to Al -- growers to encourage the production.
And the fiscal cliff bill passed in congress does not address among -- -- other things the nation's debt ceiling which we have -- heads.
Setting up the next big economic battle to be played out over the coming weeks Ollie here you got a phone was over.
If congress does not raise the debt ceiling the federal government will not be able to pay its bills -- here's a look at.
The situation when the president took office.
And today when it comes to the national debt.
In January of 09 the debt stood at ten point six trillion dollars.
And by the end of the president's first term the national debt has risen to more than sixteen.
Point three trillion dollars.
That's about a 54% increase in over four years.
A while the president acknowledges that the deficit.
And the debt are too high he warns that he is not budging.
When it comes to another debt ceiling increase.
While -- -- negotiate over many things.
I will not have another debate with this congress -- -- whether or not they should pay the bills.
That it may have already racked up.
Through the -- that they passed the president hasn't had a budget and his entire presidency no matter who was in charge in the house or senate and he doesn't want one.
He will in fact be the greatest spending president of all time and there's no question all he plans to leave office with the trillion dollar a year.
Of of deficit happily.
SEC the -- has snack and a deal with the congress on that but he had still.
That's how we sort of gotten this fiscal cliff position to begin with the last time we had to raise the debt ceiling the Republicans that we're not doing it -- week.
Have some offset some cost saving measures and they came up with this you know plan.
That we all the -- Basically fall apart at the end of 2012 so you know the president kind of -- to deal with congress on this -- -- question is who will fold the Republicans be able to force him.
In -- -- spending cuts.
In exchange for raising the debt limit again he's saying I'm not do that again.
But other Republicans gonna give -- to and if he doesn't do it again.
Wasn't mentioned texted me the nation is artists at the limit that happened on January -- one.
And the Treasury Secretary Tim Geithner says he can use special measures to keep paying the nation's bills they say he can do that for about two months.
So it's not indefinite.
So it looks like you -- maybe.
February march we're going to be having the same debate about the debt ceiling again and many other things and we'll we'll.
Hit you with those later in the show up until I -- Michigan process right back from the holidays right.
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