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Will Tax Rates Rise?

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  • Description

    Former Advisor to President Clinton, Doug Schoen, explains why taxes will have to go up for some people.

  • Duration 3:43
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Square in the middle of this and pass extending the bush tax cuts passed 2012.

When they're due to expire the latest projections from.

Congressional Budget Office show that extending the bush tax cuts would add about three point seven trillion dollars to the -- -- over the next decade.

Right up there with future spending on defense and Medicare Doug -- as former Clinton advisor and now if Fox News contributor here to weigh in.

Do you think -- though looking at the end of next year that taxes the tax rates will go -- or at least -- Well I think they're gonna have to date and I think we.

Need the revenue now how we get there is a difficult problem the Democrats want to raise.

Rates especially -- on the upper income.

Republicans have proposed actually lowering rates but getting rid of exemptions to -- I think it was 200 and fifty billion in revenue so we're so far apart I really don't see how before the election we're gonna get any sort of combination.

We -- -- -- At least a little bit of the financial impact of an action just yesterday in how them the stock market reacted and Doug I don't one there.

In the next year it's an election year and it could fall on the Democrats and President Obama at the markets in the tank if nothing gets done even -- the Democrats would like to point the finger at the Republicans.

Well that's exactly right -- in the Republicans.

Understand that elections tend to be referenda.

On incumbents and if the economic news.

Gets worse -- if there's a stalemate in Washington are both ultimately I think Republican strategist.

Believe that President Obama and the Democrats will bear the brunt.

What happens dog though if the super committee does nothing and these one point two trillion dollars in cuts do go into effect now I know.

That maybe that maybe that is kick it may -- that is -- if you well because that doesn't really had that doesn't happen until 2013.

So at least you get past the election.

Well that's right and there is already a move afoot to unwind what's called cycle it -- sequestration.

So that there wouldn't be 600 billion dollars in defense cuts across the board that most Republicans view as.

-- -- and frankly unwieldy so we'll continue with this battle whether it be -- a formal or informal process through the election.

The problem is taken as I was suggesting I don't see and more importantly folks in Washington don't see any way to avoid.

A repeat of the kind of stalemate we saw last summer.

Were these two parties can't give then on taxes can -- -- if you think about all the issues.

This is the one.

Issue where -- -- Democrats the core difference that between these two parties.

People understand and an associate with Democrats vs Republicans -- they it's almost let that one last thing they can't -- on.

Well I think that that's right I mean there was a proposal.

Bipartisan proposal from.

Bowles and Simpson to do tax reform.

Are both corporate and individual as part of an overall.

Deal that would balance the budget and cut discretionary.

Spending and entitlements as well as defense.

But the president signed on late to that the Republicans particularly the Tea Party were no go -- it and your bottom line correct that the gap on taxes is so wide it makes any sort of reconciliation.

To achieve a debt deal learned deficit deal almost impossible.

-- it was great to talk to thank you so much Doug Shannon thank you all of Brett as always let's hope something does get done I can live in fantasyland.

Country.

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