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Pulling -- Fox News -- -- now breaking news from the White House spokesman Robert Gibbs now saying he believes a deal on extending the bush tax cuts.
Is still possible.
And likely by the end of the year but what some of those tax cuts that are that are really specifically for those in the upper income bracket that top 2%.
Are replaced by targeted tax breaks for businesses that's a proposal from Virginia senator Mark Warner he's Democrat and member of the budget -- commerce committee.
He's not so our next guest tells a little bit more about this is were working towards a compromise -- senator tell us a little bit more about your idea.
Well here's how it started we all agree Republicans -- Democrats at 98% of Americans are not gonna see their taxes increase in anyway.
And we are recognized and actually both political parties have -- point the Democrats have a point.
And adding 700 billion dollars deficit makes no sense.
Republicans have a point of taking money out of the economy right now while we're still in a recession makes no sense so my idea is.
Let's go ahead and -- those tax cuts for the wealthiest expire because if we simply do it to your prompt congress has a tendency on the east and issues to keep popping the -- down.
Down the road and that's not good.
But let's dollar for dollar replace that revenue -- targeted business tax cuts because one of the things that's not often reported.
Is that out of this recession one good piece of news is that private sector companies larger companies in particular are financially healthier today than they -- 2007.
Two trillion dollars in cash on the balance sheets -- let's actually stimulate.
Private sector stimulus because.
The government used as tools low interest rates and government stimulus we need to get private sector stimulus going and I think targeted business tax cuts is the way to get that I.
Senator let's sort through a little minister presenting -- -- -- any idea we really haven't heard much about so let's get through to some of those numbers you -- 700 billion dollars.
That's over a decade period afterwards -- had the -- the top 2% with the tax can see you're staying.
Would you take over the next decade as well take -- -- -- -- and give -- to Atlantis -- just a year.
Now what I would say is the proposal which being talked about as the potential compromise before my idea was a two year temporary stay right.
That generates in revenue to the government approximately 65 billion dollars.
And tell -- what the tax breaks expire for the top 2%.
Because a temporary extension we'll have two problems one will be congress has a tendency to do these things down.
The road and not facing tough decisions and they're not going to be easy to face in 2012.
And today and secondly all the independent economists have said.
Getting folks at the very top tax rate may not be the best bang for the dollars.
Kelly -- sending let's use let me finish let me explain my problem my -- I overheating and -- and -- -- take I had -- 65 billion dollars.
And saying let's not take it out of the economy.
But let's give businesses those tax breaks so they can stimulate and create jobs in our economy two trillion dollars in cash sitting on the sidelines waiting.
To get new edged into the economy.
And I vetted this idea with a lot of business leaders and there's -- business leader and it hasn't said to me if I can make more money.
In my business they don't mind going back to the personal tax rates they paid under President Clinton for President Bush 41 when the economy did pretty well.
So we have done a few different things for the private sector throughout this financial crisis.
We have offered -- we -- -- this stimulus we've got we've offered the small business lending bills we've given cash accessible to these businesses their balance sheets have grown they are healthy.
They are not hiring.
So how do you think this is now going to translate if you take some of those tax isn't given to businesses why do you think that would be the key to get them back out there -- again.
You may not know -- I spent twenty years and this is actually building companies I was the co-founder of Nextel I you know I can be a balance sheet businesses.
Make decisions about where and -- to invest based upon their ability to protect as well as what kind of incentives put together.
So my idea is not having Washington.
Decide which of these tax breaks which of the things that are best effective but the challenge and -- the business community say what's the right solutions that.
Maybe it's aren't -- tax credit -- to manufacture investment tax credit.
Maybe to -- additional relief to small businesses helping me get this money off the sidelines that's not getting much.
Interest because interest rates -- so low and reinvested I think there's a wonderful chance to engage with the business community.
And actually build a little collaboration.
Rather that than kind of antagonism that has existed between Washington business of the last two years with this -- -- approach so let's talk a little bit about the compromise that set he -- -- everyone's returned from the midterm elections when you're stepping back into the hallways lot of reviewers wanna know.
Is the air compromise there does it feel like there's some renewed energy and spirit among both parties or is it seem like there's business.
While I think you know what -- this time of talent that are we gonna retreat -- up corners.
And not get anything done I think there were two messages that came out of the selection one -- we've got to get our deficit under control.
And -- was they want to see both political parties actually worked together.
And this idea that I'm -- out and I'm willing to change it -- -- if there's ways to improve upon it takes.
The deficit reduction piece from the Democrats and their recognition that we shouldn't be taking money out of the economy right now.
When it in a recession from the Republicans.
How can we get private sector stimulus -- because let's face it the government has used its tools traditionally government uses low interest rates monetary policy.
Or they use government stimulus.
Both both of -- -- have been fire.
Let's actually try to get where we ought to get the job creation coming from the private sector and I've actually found -- -- back a couple of days when an awful lot of members say hey.
Warner that may be a good idea when we hear more about it so I'm cautiously optimistic that there -- -- members -- both sides that won't respond favorably to this approach for another approach.
And is to finalize a final plan that we've seen is suggesting come from a variety of different debt panels that this -- coming today about overhauling the entire tax policy that entire tax system.
The United States you're talking about you know different fixes kicking things down the road and that's been a point that's been brought up to us by both sides.
-- do you feel that that's what we need a complete overhaul the tax December versus some of these temporary fixes.
I do believe that this could be of rage to a more permanent.
Tax reform which I agree with the deficit commission's approach which says let's close off some of the exemptions and lower rates to make sure that America's competitive.
Our business actually hit 35%.
Is not competitive with most of the other industrial countries in the world but -- an average visits actually have about 25%.
We need to get these dollars we invest in America and you know that is we're gonna have to get to that we're gonna have to do you deal with in a way that is.
More than the campaign rhetoric we're not gonna solve our deficit crisis by simply eliminating earmarks which I support.
But what's gonna take a lot more willingness to roll up our sleeves and look at both sides of the balance sheet of spending and revenues.
Senator ordering a we're feeling very well the beginning of this weekend it immensely tapped it feels sick in an add these big national fact that uses -- -- we're glad you're feeling better.
And appreciate you joining us today look forward to talk to you again thanks Matt Millen --
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