Power Play - 1/3/2013
Electing Speaker of the House, how 'fiscal cliff' bill affects your paycheck and is the White House really cutting spending?
- Duration 25:42
- Date Jan 3, 2013
Electing Speaker of the House, how 'fiscal cliff' bill affects your paycheck and is the White House really cutting spending?
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Was New Jersey governor Chris Christie blaming John Boehner speaker of the house by name for the continuing suffering of the victims of hurricanes in the and this is power play I am Chris Farrell and if you wonder why John Boehner cries so much today would be a -- maybe he would be allowed to shed a few tears not only does he -- conservative groups calling for his ouster -- speaker of the house when the vote takes place this afternoon but Republicans from the north east.
And states that were hit hard by -- super storm.
Hard denouncing him and is -- leaders in the Republican House.
For allowing a bill that was out of the senate -- sixty billion dollar aid package that had some stuff that was made in that to die.
On the on the at the end of the previous congress and all of that stuff so John Boehner -- gonna make the cut.
Will he stay on -- speaker we'll talk about that.
We'll talk about how you -- paycheck might look this week or next week -- now that everybody's taxes.
Have gone up.
And we will talk about the possibility of real spending cuts in the future -- say they can do that can they really.
We will do that all with the help of Steve pays because you are lucky and because -- -- starting the new Europe right Steve Hayes of course is senior writer for the weekly standard.
And and admired friend -- this Internet telecast Steve welcome those are happy new year to okay.
Let us now won't let us find out somebody who knows what is going to happen today.
And we'll talk to congressman Thomas Massie.
Represents the first district of the commonwealth of Kentucky congressman welcome.
Thank you could be here.
We'll see we'll see if that holds now the question is.
There's going to be a vote for the speakership of the house this afternoon it's the first order of business for you guys today.
Is speaker Boehner going to be reelected.
We won't have to wait long to find out little or no it's we're getting there but we let the Internet likes to know before everybody else you can tell that her ex.
Well you know there is a lot of dissatisfaction with the way the last vote went down.
How we more or less capitulated to Pelosi and Reid and Obama.
In that there was not a majority of Republicans who voted for that -- so there's a lot of dissatisfaction there.
There's still some dissatisfaction about the floor conservative members who were removed from their communities.
Really -- it was a way in which hit it -- down.
That really upset some people which you know there was no warning there was no indication.
And then some this just aren't satisfied with the way the negotiations have gone.
Now what the speaker saying and talking to some of your colleagues what we've cleaned.
Is that speaker -- that that was sort of a one time deal that yes.
They suspended regular order they did it -- what.
The Republican leaders acknowledges the wrong way.
Just to get through this tax issue.
But as he did on hurricane CD.
And promises to do going forward that he goes back to regular order and goes back to letting -- as he likes to say that -- work its will.
Is that -- do you do you take him at his word on that.
It was a matter of fact regular order was broken or suspended windy I tried to vote for plan B -- -- have three days to look at -- bill.
As far as you know next time -- we gonna do something differently I feel like we're in ground the movie Groundhog Day -- every time.
The debt ceiling negotiation comes for a budget negotiation comes up for this latest a manufacturing prices came out.
You know it's like well we'll dig in next time we'll get some spending cuts next time.
And really that's what we need to be talking about across the country you realize it's the fiscal Clift the so called fiscal cliff.
There would be 500 billion dollars of taxes on everybody even the -- it would be tax.
That you realize that the most heinous tax that we can ever imagine on everybody still wouldn't balance the budget.
Do we -- even come close we still would head over half a trillion dollars Baghdad.
So what we need to get whether it's in a debt ceiling negotiation whether some continuing resolution whether it's over the -- -- which it.
Unfortunately they keep down the road for two months what.
Would -- the negotiation is Republicans need to get spending cuts.
It's it's critical to our country.
All right last question.
Yeah -- any final deal.
That you voted against.
On the taxes from was that engineered by another Kentucky and in part Mitch McConnell the senate majority minority leader.
The Vice President Biden.
I noticed that it's reelection -- -- were senator McConnell do you think that's gonna cause him any trouble in the Republican primary -- Kentucky.
-- I don't think he's gonna have trouble in the Republican primary is race so that begins the Democrat I think you can tacky Kentucky's he needs say.
We -- so instead of politics we have Democrat state officers for the most part.
So it's just it's hard to translate what's going on in DC -- -- tacky.
You know -- we all are talking about senators I'd like to point out there.
My favorite senator Rand Paul voted.
Against the the senate bill.
And I was.
Unfortunately surprise to see that some of the conservative senators did not vote against the bill I don't know where.
Tom Coburn was on that.
And you know these are guys that know we need -- spending in this bill increased spending so you know there was some winners and some losers in -- senate side there.
Yeah thank you if you lived in Campbell -- he had -- home already but if you don't that's congressman Thomas Massie from Kentucky we thank you.
-- Steve Hayes John Boehner was talking to -- firm today -- are senior producer over on over on.
Congress those guys.
And -- -- said mister speaker and he consternation any concern about the vote today and I was like noted it's cool side.
So Boehner is fine right that is do you think he's on of these front although you know I wouldn't expect -- is the question any other way to remedy -- good -- -- -- voter -- -- a -- suppose there's no way out of this I'm I'm doomed.
Now I have said I have need to.
In this -- is it is it is this.
Conservative groups today are calling for some conservative groups -- calling for secret ballot on the speakership -- -- I hate to ask you in an -- I ask you -- case.
How are people who say Tea Party kind of groups say they want more transparency in government.
Coming out in favor of secret balloting in congress now we'd like secret about Americans are big fans of secret ballots for individuals but for the government generally we don't like people.
To express their will secretly right -- it's exactly what -- from the congressman -- one in three days to look at this right does that play and he -- it.
Three days to look at.
The -- bill or the ability to pass.
But this is what the Tea Party in effect was all about and you're having these Tea Party groups and I'm certainly sympathetic to too many goals and aims -- Almost all of them.
But it said it's a bit hypocritical for them be saying.
We want a secret ballot in this one -- -- -- so that we don't that we don't we're not basically they're data wanna be subject to retribution that.
Could come if they.
Seek to oust the speaker Palestinians it is -- to -- when the Republicans came in and point and I wrote about this in the power.
Which you can get simply -- following me at -- star -- on Twitter.
You already -- -- -- as you just treat yourself to a good added starlet thanks Annan that.
And the this.
It was so successful it's beginning of his speakership because he let as the new congress on assignment regular order.
There were no sneak attacks there were no suspensions there were no things didn't happen in the dark of night it wasn't like things used to be and that's how Tom DeLay did it the Republican.
Majority leader in the -- speakership that's happening too close he did it.
Where it's like we'll tell you how to vote and we're gonna -- even with your vote in this case the -- Didn't even vote for the legislation.
But Boehner now promises.
We did this one time on the tax stuff on plan B and then on the final deal to get it through to get out from underneath -- but now we're gonna hold the line.
Does this set up before if -- does survive the fiscal -- not -- fiscal cliff the debt ceiling.
We get to the -- -- if they're serious about that he's got a he's got a conference it's going to be willing to shut the government down.
Yes I think he does have a conference that's going to -- that the government down.
And I think you probably shouldn't have -- it's it's going to be good shot at him to look at some point now I thought that ultimately this thing had passed and that that that the thing that you had people who voted no on this.
Could never answer.
Was what do you do instead right it is some peaks and everybody some people would say no let's -- let's let all of these taxes go up well let -- -- to -- it.
Because we need to feel the pain that's the argument that's the only argument -- ever nobody ever would say here's what you do instead.
It was just not a good deal was a bad situation there was no winning -- for Republicans to play.
Didn't -- the next set of negotiations different I think Republicans do have leverage their.
I think the media the argument that we've heard that the president has has really gone out after his tax increases in this first.
Set of discussions he'll have a much harder time.
Even making that argument and making implausible even to people in the press who I think are sympathetic to those kind of artists and and sympathetic to the president yet just a little -- here that he's -- his tax increase now we have to focus on spending and everybody even the press corps understands that that's the problem.
Even at the press even the press defense that's -- threshold for us and we appreciate that we like -- we like to surmount low bars that's what we're good at.
We're gonna take a quick break but when we come back will you -- -- will join us from Los Angeles and he will tell us.
What our paychecks are going to look like.
Big in small now that the fiscal cliff has bitten halfway breached and now is in the past.
What's your paycheck and look like William tell us that when we come back.
So stick around.
And that is the cast.
Of the ADC sitcom home improvements.
And that was the number one television show in America and August 10 1993.
And this is power play so why do you care about Tim Allen and the -- -- from home improvement it's because I want you to think about what a long time it's been.
Internet says there was a tax increase.
But many condos -- the Clinton taxes passed in August of 1993 since then it's been all costs.
The bush -- and even in the Obama era cuts to income taxes cuts to payroll taxes cut cut cut cut cut.
And now for the first time in a generation taxes have gone up.
So what does that mean Steve Hayes of the weekly standard will explain to you how we got here but let's figure out first where we are.
And William La Jeunesse in Los Angeles -- that William welcome.
Thank you very much Chris you know whether you -- -- not your payroll taxes are going up so how much you're gonna give you some figures here.
It you'll probably see the senior check on Friday some people next week.
Of course is -- after a two year reprieve when.
When payroll taxes were down by 2% -- they're going up.
So for single people earning about 30000 dollars year the IRS is telling -- employer.
To withhold about 5400.
Dollars a year that's up 570.
Dollars or eleven dollars a week if you earn ninety Graham.
You're gonna pay about 20000 in withholding taxes that's 2400.
More than last year if you make a 185.
The governments can withhold 50000 that's an increase of 6000.
If you make over 400.
Your taxes will increase about 270 dollars a week or.
Fourteen grand a year.
But remember these are payroll taxes the fight -- deduction on your paycheck that -- for Social Security.
And Medicare this is money that you get back it's like paying any retirement over your lifetime accorded the urban institute an average worker will pay.
Dollars and -- taxes they'll get back 4171000.
In benefits so Chris somebody.
Is subsidizing your retirement.
Chris now -- we see today -- that lots that.
When you're talking about above that 90000 dollars threshold when you start getting the upper income earners.
This deal has taxes for them to.
What is what is the deal mean for those hiring comers.
You know this is we've heard about the 1% and -- they don't pay their fair share -- I've got a new number for you right.
Point seven per cent.
That is the number of tax returns were going to pay.
Of this country's federal income taxes so for 1% of the country we're talking a 143.
Million tax returns.
Just one point one million of those returns.
-- seven point 7% will pay more than 40% of all federal income taxes how we getting -- that figure well we were talking basically people who.
Individuals over 400000 couples over 450000.
That is where the point 7% figure is coming from.
And about below about sixty million Americans will still have a zero or negative tax liability.
Said the 1% you're not gonna hear about the point 7% Chris.
But those folks better get busy alright William we thank you for your -- have a great day.
We're not in the point 7% I'm not the -- I was just I was disappointed that we didn't break down the four million annual right now and I do you write it for the west is point seven point 7%.
Now the question scheme is.
People now understand everybody's taxes did go right and everybody's taxes went up pretty considerably because weapons out of -- and if you're the median household income units 50000 dollars.
If you go down fifty bucks a week yet.
If you're gonna field you're gonna feel that right away.
In terms of the political consequence of this.
Bill Clinton didn't pay a heavy price back in the nineties when he did this because the economy he he was doing and and it ended up that -- -- incomes were growing and that fifty bucks wouldn't hurt as much.
But now win incomes have shrunk and are still shrinking in many cases that people are gonna -- People get -- feel that I think is one of the reasons that Republicans would be wise even though they did play a role in having.
For having obtained a steal and passed it would be wise to stop talking about.
Don't talk about the bush tax cuts and -- -- met him permanently there are a couple of I think not -- terribly significant but but.
You know the good things in the bill.
I would not be talking about it -- Republicans because.
It is the case that most of people who are going to be subject to these increased payroll taxes were probably paying attention to all the back and forth thing that we saw the week before.
New Year's end and certainly we are expecting to see.
-- taxes go up in the way that they are likely to so this is going to be a rude awakening for a lot of Americans.
They are going to be looking for somebody to blame Republicans don't want to -- that group they don't want to be part of that group they would like.
Those those taxpayers to blame the president -- Democrats because they've been arguing for raise taxes on the rich I think most people will say.
What -- I'm rich.
So I would -- you know -- I've heard Republicans over the past couple days to go to some Great Lakes you know extolling the virtues of this deal and I was really good because it extended the bush rates it.
-- politically I would not be making an argument for -- You know I would like Steve case -- because not only does he know about policy he's willing as we are traffic and cynical politics and we appreciate that.
The -- -- isn't anyone listening.
Now we get an increase on rich people we need to get the other 51%.
That are paying taxes so there is that there is there is that but a lot of those people.
The 47% to 51%.
Depending on the year that don't pay taxes -- -- -- don't pay taxes those people who don't pay income taxes isn't anyone listening.
And we are.
The payroll tax hits everybody who works a job if you were a job can get -- if you work.
Above board if you're not getting paid under the table in cash everybody pays that that's the fight attacks everybody -- that and they're all going to feel -- Fair tax -- it says I was gonna get to read the bill for three minutes before voting.
That's because nobody wanted to read it it was not something they wanted to read and that's by the way by the fact that had so much -- barge in it it had so many little.
Friendlies -- -- for people like Chris Dodd at the MPAA that did lobbying arm of the movie business and all of that stuff that's that's how it happened and that's what John -- promises.
That was a one -- thing it's not gonna happen again he promises we'll see Steve is going to stay with us against the advice of counsel and his agent.
But when we come back -- now will be here the Democrat your friend will be here and we will talk about the question of this.
Are we really talking about tax cuts is -- are spending cuts is that really possible but we will explore the question when we come back.
-- -- -- Adamantly.
The problem we have is what we've done is we've taken this four trillion dollar -- -- -- and then said we won't do it again.
Well did vote the other night was four trillion dollars of new deficit new debt as a result and then we're saying well we're not going to do this.
That was Darrell ice he was on the record with Greta Van Susteren last night.
And this is power play.
And Republicans like -- who are in leadership role saying they didn't like the tax plan that went forward he called -- -- four trillion dollars slug of -- when.
Not to not to him.
Not to be overly delicate.
And but now say the time has come that they can force the president to make cuts and their.
Good they're standing by this and they're talking of their constituents and their talking to riled up conservatives and saying now the cuts will come.
But that hasn't really happened in the past we've seen reductions in future increases we've seen all of these things were Republicans at this time.
For real they're really going to make cuts is that possible and how did what happened in this fight.
Affect the likelihood of those cuts were unlikely -- of those cuts.
Steve Hayes knows and he may actually tell us.
But who else knows is done for now whom you life.
He is a former spokesman for the and now is democratic strategist consultant kind of guy that ST Kate barker welcome -- -- with him of course.
Of course we'll see all right so the Republicans say that there really will be cuts.
And there -- willing to go to the mattresses on the debt ceiling.
So Doug is are are they really going to be able to do that -- they really going to be able to affect cuts sure.
Luckily I think so but I mean the president's already signed into law he did a trillion dollars as part of the budget control act I think they cut.
I forget that an amount but when they avoided a government shutdown.
How does it but we should -- -- those -- the reductions to two scheduled growth right those are quite -- this sequester would have been actual cuts.
That was a president to deal with -- is threatening there they're gonna.
Did you within two months.
If I step back and I look at this Ari can I literally scratch my head that Republicans.
Not I'm not speaking for -- -- I don't know his position but some Republicans -- we -- eighty or so that.
The and 980 house Republicans voted for this don't see that.
They actually did get something -- -- They they were able to protect.
For the most part almost all the bush tax cuts 789 years ago Democrats would have literally to -- off a cliff if I knew that was just under presidential democratic president.
You know I think the mistake here is that they could get a better deal.
Two weeks ago I don't really understand why they went to the plan B charade.
The president had -- for almost a trillion dollars in cuts as part of an offer to Boehner that he walked away from.
I think that's going to be one of -- missed opportunities that Republicans on capitol long term yes absolutely I think Democrats I mean look there's a trillion dollars in cuts that are sitting on the table we're part of that could have been part of this deal that I think Republicans are gonna try to.
Force the issue on and I you know my sense is that Democrats are probably are you know they were willing to do it -- president was willing to do it to three weeks ago I imagine that.
They'll be some concessions on the it may be on capping deductions or some other things that -- you.
-- -- Yep really cuts I think Doug is is right I mean.
Yes some of whom will be real cuts alone and some of them -- phony cuts and that's the nature it's Washington where we live Washington cutting.
But I I do think that the fact that the president had that they had these conversations not just once but really twice and in theory.
They've had these conversations about some cuts and things that people can just generally agree.
I don't think those the kinds of cuts -- reforms that we need to to turn around our debt trajectory right but there will probably be cuts I don't know that I -- I would imagine the president will go to great lengths to avoid.
Sounding like he's.
Giving these cuts in response to threats on the debt -- He's been very clear he's not negotiating on the debt ceiling is not now of course in this in this package that he just -- -- -- I will not sign anything.
That doesn't include a debt ceiling hike in -- this didn't include yes right right any -- it.
So there's a little -- give on that but I think having gone out as far as he has rhetorically he's going to be -- to -- Up here as though he's giving in to threats and that's what.
And outlook for the -- Boehner.
To survive he has had -- if if he's going to survive said -- members that he's gonna take a theory tough line on the debt ceiling and everything else.
What happens there.
I think that we may be back in the same position in two months I fear that I think that you know look if that I think John Boehner.
-- did actually.
A pretty good job -- the positions in.
He was up against it.
And he has title that's gonna help -- wasn't used to say that a lot that's gonna help but you know this.
That's probably right -- right well it was a very you know look I I -- great X and I.
Look I think he made a lot of -- -- some strategic errors that will come back to haunt him.
But my sense is that you know -- probably try to -- debt ceiling.
Once again I don't think that's probably.
The healthiest way to do this but that's their leverage right now.
It's not much else that house Republicans.
That's going to be nasty that this was -- Steve we thank you -- it always is with them is always nice with -- that we thank you very much -- miraculous today okay.
So now to take care.
Of some business.
-- -- is and after Jonathan Hunt on the hunt today so -- like that that's something to look forward to starting at noon eastern.
But before we get to our friend Charles how about some -- -- your first power points -- 2013.
Our points today that sausage bad sausage are -- are points today but first -- PowerPoint Hollywood NASCAR.
Algae and electric motorcycles.
Those are some of the things that got my sees little -- -- of goodness and tax Extenders and help.
Indeed bill that averted the fiscal left and that got in their.
Why because of the second point it was out of order when you do legislation at the end of the year in the last minute to waste stuff gets done.
It is that people sort of turn their head and cough wow the legislation is put together it gets done and people just hope that they don't have to see it while it goes on.
That's not cool -- from the mindset of good government advocates left and right this is a bipartisan issue this is not something.
That is just the Tea Party concerned this is something that conscientious liberals and conscientious conservatives believe needs to be done in congress which is regular order things have to happen in the way with transparency.
So that you can see them done.
That's not how this happened and how -- acknowledges that it's harder for the speaker or anybody else.
When you get down to the end when you're doing something this complicated and under the gone to do it the right way but.
They should think about this number three bad for the brand it's bad for the Republican brand which it has taken a boost from being the party in favor of good government and more transparency that's been helpful to a party that used to be seen as secretive nixonian etc.
it's been good for them they probably if they wanna get reelected to get back to -- so those -- your power points.
And now we like to do every day we want to leave you with the word from our French -- -- there's.
There's the process which is insane.
-- you know.
Twenty years ago that this is sort of this would have been a huge bill the idea you should be passed the middle of the night.
We know debate -- was no regular order simply because.
People from wind -- part of the country are demanding it.
I think he's insane.