What are implications of 'fiscal cliff' deal?
All-Star panel weighs in
- Duration 6:51
- Date Jan 2, 2013
All-Star panel weighs in
Also in this playlist...
This transcript is automatically generated
The agreement we -- this week will reduce the deficit even more by asking the wealthiest 2% of Americans pay higher taxes.
For the first time in two decades.
The failure to step up and do the big thing when he could he could -- leadership to the table he didn't face -- -- talk about.
Cutting spending this kind of a joke by its very definition of compromise contains elements.
That neither side likes.
But it also contains pieces.
So by making Republican tax cuts permanent.
We're one step closer to comprehensive tax reform that will help strengthen our economy and create more and higher paychecks for American workers.
-- the fiscal cliff bill passed the house passed the senate overwhelmingly.
And now it's heading to the president for signature will be an auto -- a signature forces' presence in -- Hawaii.
-- today you saw the beginning of that clip a campaign style video in which he said.
That the -- soon to be law.
Reduces the deficit.
By asking the wealthiest households pay more.
We're back -- the panel Charles.
The nonpartisan CBO says it actually adds nearly four trillion to the national debt.
Over ten years if you break it down on the deficit year to year it's about 300 billion per year.
How is that possible.
The president was only off by as you say you four trillion dollars.
Well when he's pretending is that if there's a sort of an isolated increase in taxes nothing else happened.
If that were true you could say he reduces the -- of course it didn't.
Because there is an avalanche of spending.
And what's called tax expenditures right that the money the government gives away that would otherwise.
Have had in taxes which is up to four trillion dollars this is a huge increase in the debt and deficit everybody understands it.
Understanding that a part of this is yet the tax.
Cuts the keeping the tax is the same way that they were for the last decade costs this money so it's there's a part of that that is.
A bounce paying for that.
But CBO says as of midnight last night.
We would have found an expiration by law when the bush tax cuts that -- replenish the treasury by a huge amount of money.
So a piece of it is reduced.
But all of that.
That would have been increased and taxes is removed.
Because of -- -- so hard to explain some convoluted.
But if you exempt 98% of the population from what would've been an increase in taxes they -- of vastly increase the debt because the treasury is now start.
So I'm Obama wants it took -- a tax credit he's got all kinds of new language.
Which explains everything and in fact last night he said in the victory lap.
But we can't but we have to increase our investments.
Then he went on the usual litany education are indeed -- roads and bridges investment is that the liberal word for spending.
He has no interest -- -- and he basically announced last night.
But I'm a -- clintonian.
Tax and spend -- a Democrat I'm gonna increase our taxes even more and increased spending.
You -- that.
You know I don't know.
Is really the truth and I talked to a lot of people about -- summed -- including some Democrats are very disappointed and who are more of the clintonian stripe who are hoping that there would be -- -- dust deficit reduction.
They feel the political people kind of one on this issue that the policy people in the White House really are serious about deficit reduction but that.
The political people saw a chance to sort of -- on Republicans -- you know the Philippines have this big win and so now the question is will they try to do something as we come up against our next deadline and the fact that I don't can't answer the question the fact that I can't say -- that President Obama.
Affirmatively wants to reduce the deficit suggest that he probably doesn't.
Bill I know you're an opponent of Republicans signing on to this current deal I want to talk about the next flight tech take a listen to what the president said last night reaction to.
While -- won't negotiate over many things.
I will not have another debate what this congress over whether or not they should pay the bills.
That if they've already racked up through the walls that they passed.
I was very disappointed.
In his demeanor and the -- -- that he made last night wanting no fight over the debt ceiling aren't you kidding me.
I've -- -- does seem ready for this fight or at least some of them do this is Moody's Investors Service -- top ratings agency said they're going to keep the government on a negative outlook because they actually don't see.
-- forecast for deficit debt reduction.
In the short term.
They'll look I think Republican should be ready to fight on the debt -- out of it probably should get themselves as long as President Obama is president especially as well and while -- the Democrats also control the senate there's not going to be appreciable.
Reduction in the deficit the only way that would be is if there are some faster economic growth which is to happen to -- -- But the the end of the day President -- -- perfectly happy running trillion dollar deficits for years he seems perfectly happy to -- restaurant -- dollar deficits this year -- is to be happy to do it next year Republicans might be able to make a difference on the -- what -- that they do need to think ahead of time what are they gonna ask for.
At the end of February when the debt ceiling and affect the sequester run out and actually this is continuing resolution for the government runs out of march as well.
And I think they've been making das is spending cuts they should really look at -- regulatory situation I think we want economic growth the end of the day this -- not gonna solve the debt and deficit problem.
We can ameliorate the problem economic growth in the next congress the next president perhaps can really get serious about entitlements.
Economic growth I think regulatory relief for -- Obama care for a year -- two.
I think there -- proposals that the Republicans could suggest there will be a little hard for the president to say why isn't that a good idea -- -- economy.
Do you think that the presence going to sign on to slowing Obama -- some way -- he doesn't he doesn't find is that not -- to planet anyway at the end of this -- the governors the democratic governors say they're not ready to -- -- the exchanges -- -- actually doing a -- to him -- to put it -- a year -- two would save a lot of money.
Then we'll let the president explained that it's so urgent obamacare go into effect this November even though it's -- and generous person next year even those -- be chaotic.
That we need to do that at all costs and that and that it.
The Vegas -- burden on the economy.
He's not he doesn't care about but I honestly this present I'm afraid we're stuck we have to hope that the markets will tolerate.
This debt level of debt and deficits for a couple more years so I don't think this president will allow serious efforts to listen to -- to -- and that's it.