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Tax Debate Heats Up in DC

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    Americans for Tax Reform President Grover Norquist on the growing debate over potential tax hikes in January.

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Gerri Willis.

Buckle your seat belts because we may be about to go over that fiscal -- everybody talks about.

The latest in this game of congressional chicken Democrats now threatening to -- huge tax hikes and deep spending cuts go into effect at the end of the year.

That's unless Republicans -- -- vote to raise taxes on the wealthy joining me now Grover Norquist president of Americans for Tax Reform -- welcome back to the show.

We make about this new hard line in the sand from Democrats.

It's not really a change if the Democrats wanted to extend.

The 20012003.

Bush tax cuts or the Alternative Minimum Tax patch.

Permanently for anybody lower income people middle income people anyone.

They would have done so in 2009 -- 2010.

They've always intended to take this 500 billion dollar tax increase and spend it.

I get the proof is in the putting they had a chance for two full years to make any piece of that.

Those tax cuts that snap back in January to make them permanent they've made none of them permit non non.

None is not hence when the Democrats say they're just understood and taxing rich people.

Well you know it's interesting because at Patty Murray among others -- they're starting to describe this thing as not.

Fiscal cliff.

But -- fiscal slope and here's their logic.

They say that these tax hikes -- come into play at the beginning of the year that they don't come into -- all of them at one time but slowly and for that reason I guess they're happy that the economy won't fall apart immediately it's hard for me to understand but what do you make of this.

Well here you have -- the senator that you just mentioned was in charge of passing budgets for the last three years in the senate and hasn't.

Passed a budget or written about -- -- or outlined a budget from the senate for the last three years.

So Patty Murray is the expert on how not to do budgets.

On the senate side I don't know who pays or why but if you run Senate Budget Committee you'd think you'd be doing budgets at some point during the -- -- -- I'm super committee I mean she does know a thing or two right.

And super committee also didn't pass a budget well -- -- -- -- I think she doesn't quite understand that when you tell the American people you're -- triple the tax on dividends.

In January that doesn't sneak up on them are when you duty did the same thing to small businesses.

Well.

-- let me answer the question this way because I actually think there is an insight here.

This is not the year that the Republicans would seem to have the biggest head of steam they've had recently.

2010 was that -- so if this is the year you have to make your big stand in the ground on taxes it may be more difficult for the Republican Party to do that and -- say.

Well.

What actually happens is that November 6 Election Day.

Is going to be all about taxes which is not where the Democrats why that's what the Republicans want Grover they want it to be all about the economy.

But one of the reasons the economy is doing -- that like.

And this is the worst recovery since World War II is -- they're threatened with a 500 billion dollar tax increase if Obama wins the presidency.

Or the Democrats keep the senate either of those and that tax increase -- us in the forehead.

The reason why I think -- Republican to win the house the senate and the presidency.

Is that if they do that.

We don't get the tax increase the Republicans have made that clear.

If Obama wins the tax increases permanent -- are the twenty tax increases.

In obamacare.

Well -- a lot of Texas coming that's for sure and it is that -- it's like.

Hurtling off the side of a mountain.

But -- -- respond to some criticism you've taken from Tom Coburn today in an op -- New York Times the senator.

Calling you out saying that no the no new taxes pledge date that you get all these Republicans to sign.

Is allowing Democrats to characterize Republicans.

As mindless robots -- faults.

Nonsense.

The Democrats don't mention that the Republicans.

Have a plan which is the Ryan budget plan which Coburn voted for by the way.

Which would reform government reform entitlements reform taxes and not raise a single.

Tax anywhere -- -- tax reform and a budget reform we don't need to raise taxes to fix our fiscal problems we need to spend -- Money what kind of program that is wrong is that you'll never pay out the deficit lets you raise taxes what do you say.

He's wrong he should talk to Paul Ryan because Paul Ryan's plan.

Does end up paying off the bat and British and the deficit down to zero.

And taking spending down the Ryan plan does everything that Coburn says he's for.

The challenges that -- has actually endorsed a two trillion dollars in tax increases.

When he promised in writing to the voters of Oklahoma he would do no such thing he needs to talk to the voters of Oklahoma.

-- he would not tell them the truth when he ran for office.

-- I'm not sure but I think I've found attacks or at least the collection of the attacks the -- actually support and that's attacks on online retailers -- -- I know well it's now -- The Fed up you say you let you -- -- online sales taxes collected by the states over the governors are caving on -- Republican governors can you say that's okay why.

None none of that they're cute things republic some Republican governors went Amazon -- since builds.

Warehouse interstate there that have -- and so they collect sales taxes that concern that we have is that president late.

Alabama can only -- you if you have a physical maxis and Alabama can't tax LL bean and it can't tax Amazon -- they -- factory.

-- Alabama.

That protects against corruption and abuse because.

There's no level of taxation that some state won't impose on a business located somewhere else so that's present law that's the constitute.

And what about any underlying retailers a lot of -- -- putting down roots in these states -- Whether they do then they have -- and you have taxation that's not governor's folding that's applying present law and not just.

The the concern I have is that some in congress want to pass a law that says.

Although you know West Virginia.

Arkansas should be able attacks.

Businesses and other states if somebody emailed something -- their state.

That is very dangerous not just for online sales.

That's dangerous for the corporate income tax because they can argue.

I wanna tax Exxon's worldwide sales from Arkansas because -- and I say -- They don't want to look for the I wanna do that I thought yeah that's Grover that's where sheriff the next -- up up.

-- thanks for coming on tonight it's always a pleasure to talk to you thank you so much.