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Fmr. White House ‘Auto Czar’ Steven Rattner on efforts to reach an agreement on the debt ceiling.
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Meantime keeping an -- and these ongoing debt talks here.
We don't know how much closer they are to a deal we do know that the president plans to meet with democratic.
Leadership next week to try to hammer one out but I wanted to look at the calendar we're looking at here between the house and the senate.
The times they're -- session before this so called August 2 deadline about three weeks not a whole lot of time.
And one of the things we already know is they're taking at least income tax rate hikes off the table but that doesn't mean they're taking.
Tax -- experts say off -- table.
Our talk of removing a lot of the special exemptions and allowances -- write offs.
Charitable contributions and likewise for upper income folks and for companies that write off.
A private jets and the like they're not calling those tax hikes but certainly they would result in higher tax revenue for -- -- -- now.
From the former White House cars are Steve -- best selling author as well Steve and -- and abroad so it's so much tonight so first off.
On the BankAmerica thing if you don't mind surprise.
Or or -- No I did for us I don't know much about it but -- feel this has been coming for a while -- I think it's been signal that it was going to be in this zone I can't predict the market reaction but.
Whatever the rights and wrongs are I think BofA has made it clear that they wanted to -- -- their life and don't their business and this will hopefully allow them to do that.
Part of it is everyone kind of looking for a pounds of -- should not.
Throwing someone in jail I'm having -- pay an awful lot of money.
I think there's no question about that again I'm not here to judge the rights -- -- wrongs but.
As a purely matter of legal formalities there were some corners cut it appears and that allows as you say people to get a pound a flash and that's the world we live intact.
The other world we live in is so far.
One without.
The deal on the budget on spending and we're -- the -- and early August today we're gonna have to deal.
I have to believe we will because I can't believe that either side any of the combatants here.
Are gonna allow the US government to default.
You know I know there are people who say sure let's let him bring it on let it happen.
But I think the cooler heads on both sides of the aisle recognize that that's a bad outcome for the country.
You know who is turning magic you know you know these people administration -- that this August 2 figure.
Well August 2 happens to be the day that I think both houses trying to go -- on -- -- so there's about I think part of the magic that's the deadline that's part of the magic out that they can certainly stay a few more days.
The problem with this -- like the budget that government shut down issue is that I don't think anybody honestly predict precisely when the government runs out of money.
-- -- -- -- -- did it -- I mean are there ways or do you know whether they plan ways.
Around.
Avoiding default smugglers avoiding not making good on a payment to a note or bond -- -- a Social Security recipient.
Check that's so there is no way to avoid making a payment two on interest or principal to a bottle without as an event of default and there's no question.
Could what is that it is that moved up much like when you're infinity dress you try to pay your mortgage tried it it includes those become priority issues.
Well yes I think everybody agrees that we get paid first so could you not pay Social Security recipients for a week or two I think you probably could.
In the corporate world that would also be an event of default their creditors just like anybody else but in the government world are -- rules -- -- California paid its workers for awhile and paper so you could probably play -- games like that but it's -- -- -- -- for very long not munger Arnold enough for a long -- what you think of the way the administration.
And Democrats at some moderate Republicans are.
Trying to sign off on revenue enhancements tax increases.
Without corn.
Without calling -- tax increases taking away maybe subsidies through the ethanol oil producers.
You're gonna get more revenue no doubt so it's it is an increased by Saddam.
Did Republicans will go -- -- I.
Think in the -- they probably will because it's got to back compromise if you wanna compromise you have to meet somewhere.
I think right now that the Obama administration is kind of playing this football game from its own twenty yard line in the sense.
That whatever happens -- the bulk of the deficit closing is going to be spending reductions that's what -- Simpsons had that's what the Ryan plan had.
That's even what President Obama -- plan had so everybody agrees that 607080%.
Of the deficit reduction is going to be spending cuts.
And we agree that when they got a portion -- include.
Income rate hikes.
So this is the only way you can get revenue and right.
Exactly I think -- revenue hikes -- income tax rates are off the table at the moment.
So therefore you look around the edges and you can I would call them revenue enhancements are tax increase at all except your terminology that's what they are.
But I think what people but -- think -- you've been close -- this -- -- that -- but it's all about.
The PR park how they sell it if if if if you conservative Republicans go back Steve to -- and Tea Party.
Friends and and they here well I didn't accept a tax increase -- say.
I mean I just made the tax code leaner and meaner or got rid of subsidies and write offs are special -- allowances.
Did you guys would have to be opposed to anyway that's not gonna go down well.
We have people like Tom Coburn -- -- -- is a very responsible Republican -- basically saying out their tax increases we that's the price of poker and we gotta be part of it.
The problem the Tea Party people or anybody Republicans gonna have to your point.
Is going to be Grover nor question the Club for Growth which basically has laid down the law -- even letting an ethanol subsidy go away.
Is a tax increase and therefore it should be -- I don't ironically they hate ethanol subsidy exactly.
And they're gonna be very they're gonna automatic on the there's going to be -- and also it's not going to be incredibly dogmatic watch -- -- universe this thing.
I think we will but frankly on this may sound like partisan comment I think there's more dog which has some on the far right -- on the far left in the sense that the far left.
Except the fact they're going to be a lot of spending cuts.
The far right doesn't seem to be prepared to accept even a dollar -- revenue enhancements tax increases whatever you wanna call them.
But in the end I do believe they'll be a deal I really do.
OK Steve -- very good seeing thanks and -- -- -- -- are very much again we're.
