Will mounting debt bring middle-class tax hikes?

This transcript is automatically generated

Well right you know we got a brand new congress but it's essentially disabled government only bigger and getting much bigger and we don't seem to much care do we.

Hi everyone and happy weekend I'm Neil Cavuto -- You want more government well you're gonna have to put up -- because a deal that was supposed to -- spending.

Ended up only increasing spending by now you know the score they really didn't -- -- things let me cut to the chase although more than just rich folks are gonna have to cut -- -- It's sex and lots of folks because taxing the red tape covering the bill even -- 600 billion dollar tax hike on the -- -- the next ten years that -- about.

Sixty billion bucks a year barely enough.

Keep the government running for a week and like I said they're not -- -- -- and I mean anything.

So we have to find a way to keep repeating that -- -- I just taxing the rich -- got to satisfy even if -- all that money every less that ten years out our debt would still be higher than it is now.

So you have to move down the food -- you have to move down.

We'll -- you.

Under 400 and under 450 grand -- and I think I under I'm thinking fifteen grand and over.

As just start.

-- all their taxes -- -- conservatively but present all of them and it still wouldn't keep up.

With the growth is spiraling out of control programs like Medicare Medicaid -- -- -- -- And I added even -- defense don't get me going on defense just to sustain what we clearly don't want to cut now.

We would have to raise everyone's taxes a hell of a lot more than anyone give even that them.

-- -- -- given up on spending.

The only other option that would have to be taxing so you like this beast called government will start feeding him -- he's hungry.

And he's getting -- to Ben -- Charles -- very well.

And Adam Lashinsky Charles Payne if you didn't -- even raise in how.

How many people really I -- what is probably gonna happen this week and its people peruse their checks because they hold it up.

It -- warm and talked about maybe get the payroll tax -- I don't.

I thought -- wasn't going to be a tax increase on every one I was shot the president and fight for that but to your point.

This is a very very very very tip of the iceberg people want bigger government you say it's okay you -- larger government you think it's fair you think it's nice.

You know hundred billion a year may be -- food stamps and yet.

And it costs a lot of money and by the way this the government this administration.

And visit some sort of utopian salute socialist.

Society where government does so much.

That -- is amazing it's a volcano it's hungry and it -- human sacrifice.

Well well I don't do humans out of lesbian leave out -- Jerry limited.

My lord add Charles is exactly where I had no look I don't encourage them.

At that I have to tell you I'm.

I know -- yeah I kind of I'm not going crazy with this people making 50000.

To 75000.

There'd be paying an additional thousand dollars in taxes and you know the president promises he said I'm gonna raise taxes on people earning 250000 dollars he is doing it.

-- -- doing it by limiting scaling back deductions personal exemptions mortgage deduction whatever you want to take you have to think twice about it.

Well you know Brad Stein you said this before anyone that you would like to cut spending -- can't seem to cut spending.

Odds so they're do it -- debated it dates on the -- certainly and in public opinion polls.

We they'd much rather that the -- than ever cut cut spending you know different -- of results.

So let's assume that spending won't be cut.

Then you've got to hike taxes like crazy what what do you envision in the next few years -- -- -- I think it's I don't know it's going to be in the next few years but I think we are looking right down the gun barrel of a genuine government -- faulty.

Spending is so out of control.

And you're quite right -- that I've been saying as you know for years now and got a raise taxes on the rich now it's too late for that I don't see any.

Option besides drastic -- fault and a drastic cuts.

In spending the situation is.

Dire extremely.

Dire I'd never thought it would get those bad and it has gotten just.

Out of control terrifying.

-- did we miss a golden opportunity on this clip saying to at least show some backbone order we just give up on.

No we we didn't miss any opportunity because we're gonna get another chance in about two months when do you really believe that's right really believe -- again.

Well I know I know it's true I mean we we did you have to do something by the end of last year and we did we did something no one satisfied -- behind -- -- without taxes -- -- by -- mounting -- or what was tax -- overspending but -- -- -- Which has Ben has been saying was one of the things that we needed to do we accomplish and I don't buy -- that we needed we had 41 to one -- tactics nevertheless that's what we got.

That's we got what makes you think we'll have any more backbone two months.

Well it's not that I think we'll have any more backbone it's that the way we set this up which is hardly ideal I mean it was an ideal to have this brinksmanship up to December 31.

But we had to address the sequestration issue so we did so no we.

We'll have already just what I'm going to that was -- -- -- -- months.

-- we -- to go -- -- so we did and I'll be good 11 thing let me just make one point on.

One of the things that Republicans want it for example was up permanent extension of the bush tax cuts.

We got that we did that that was a success of this last of this last legislation.

As was raising the marginal tax rate on the highest earners so we got that extra 600 billion dollars that you showed -- Is not nothing it's something -- you're right it's enough to keep us going for a week in when we spend right now but all right what do negatives.

I -- Adam I love them -- -- -- -- rose colored glasses on and all the time with this -- -- you say you love him you mean just like and a lot -- -- -- lot -- -- To actually mattered if you can.

Yeah.

That's extra on this and look at the very strong terms that is very strong a term but -- -- situation.

-- right you know but before we get to the default think of all the crazy things are gonna do before that will do the taxes on everyone will take away all the -- it's all everything.

And then there would -- and I talked earlier in the week about perhaps the idea of the one trillion dollar corn.

You know it's okay.

I believe that.

You reject -- out audited in New York -- -- decided to defend.

A one trillion dollar point this second Austin Powers and the -- and only one day that would have made in Missouri justice gasoline heating.

What did you lose -- that -- like I'm -- They're going to let you -- I thought I'd let the Coke machine and -- this they'll make the Bill Kennedy did you there blowing like this though.

-- -- -- -- money from yap island -- make it big so they'll look at what you did a brilliant -- -- I think this thing on that hole coining it it spoke of our times it's it -- we were going through hoops to come creative ways to keep the game knowing.

Rather than just deal with the -- It's gone up 60% and the president's watch.

And we can't afford it I wanna hear what you guys have to say about this because we can't afford this we are made promises to Americans that we cannot keep them got it luckily just.

That though Gerri.

But let that there's -- a recession during most of the president's watch we can hope.

And I do hope that we won't be in a recession for the next four years and that we will be able to cut down -- that debt.

But -- reveal what -- -- about half and it has already hit toilet people are already polling well.

With all -- -- -- -- housing recovery going on automobile auto sector had a good year yeah but one thing with the great -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- We live in every -- they the activity with all due respect.

Even if there is your recovery you will be adding hundreds of billions the deficit and -- -- cumulative debt.

Every year where ever there is no -- and do it there's no and -- there is.

Then comes back to -- Adam spending spending spending and by the way and I.

But what and -- -- the economy you just talked about this recession we can't get out -- recession that we're hunkering down.

And an end and in outlook it -- things that we're doing on it's it's more like a nation that's ready to it.

They didn't divvy up the spoils and call of the day rather than one that's looking forward to the next hundred years.

Gary I actually think when you look at what's happened to -- to the debate on Medicare for example this is one example the American people actually have spoken -- they said.

Don't touch these programs we like these programs we like having -- I don't know I didn't know -- -- that's why but they said don't touch Medicare.

Don't touch Medicaid -- Social Security alone leave entitlements along you have a block debate it -- of the Congressional Black Caucus saying don't even think of addressing them so.

We're left with no other option but to either increase taxes -- is -- said -- -- had to default -- pretty options.

Right well we're raising taxes we're doing as they normally -- -- me and today that we lost strike and we are ready socialist country.

All right you know candidate might love you I'm sickened by what does that affect.

But it's a sickening -- coming -- them -- -- -- take a break here pretty.

Watch Live

Will mounting debt bring middle-class tax hikes?

Details

Clips

Cavuto on Business

Will Washington scandals derail Wall Street run?

Lone Star lesson for President Obama?

Job market shrugs off dire sequestration predictions?

Did Boston bombers derail 'Gang of 8'?

President's budget hits 'under $250G' crowd

Uncle Sam to make house calls?

IMF pushing gas tax to help save environment

Congress forcing cash-strapped Postal Service to spend money

Obama doesn't view debt as immediate crisis

Unions win major fight with Walmart

Sequestration scare tactics overblown?

New middle class tax hike warning from key Democrat

Transcript

Recommended