You're watching...
Strategas head of policy research Dan Clifton argues addressing Bush tax-cut extensions after the election will be bad for the economy.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Bonds.
We don't get any action out of Washington until 2013.
Than what does happen to the economy and this country.
Let's go to Dan Clifton -- -- policy restart at strategic then it is Benji long -- friend but I am glad you're here today.
Great thank you grabbed me on date and I really appreciate what do you think I don't -- -- her what Chris said about the potential for action after the election before the new year and in the new year.
-- well -- let me start off well I think that congress is going to act.
In the lame duck session of congress there's a number of catalysts that are out there for then acts such as the Alternative Minimum Tax -- be -- this year giving patch next year.
I think both President Obama or Mitt Romney whoever wins would want the debt ceiling raised now.
Rather than having to deal with that in early 2013.
So you look at -- you say okay there's a number of catalysts here the problem with that analysis -- Is that there's a very dangerous conversation that's starting to build here in Washington.
And that is that there's is really not a fiscal cliff.
But it's a fiscal slope and as a result we can go back and let everything -- now and then fix -- in 2013.
And I think that would be very very dangerous for the economy were ready -- business investment stalled now ahead of the fiscal cleft.
If we do let it expire I think it would be very very negative for the economy.
As of congress should -- -- in the lame duck rather than in 2013.
Well when the bush tax cuts were originally enacted there with budget reconciliation -- appointed this got your research it it took and to help again.
That of that year so it been threatened and I want you to bust some -- -- -- that are developing.
About waiting until next year on that's -- That's exactly right you know the first -- I would say is that they won't be an economic impact until after they expire and that's just false I think we're ready seeing net negative impact.
In the consumer confidence today in the GDP -- today.
The second is that congress can act very fast.
And that's just not true congress -- -- even in 2009 when our economy was hemorrhaging I was on your show all the time -- get.
It took six weeks for the Obama stimulus plan to go -- are gonna get done a mid February.
And that was much less controversial than what we're talking about now the bush tax cuts you were correct took six months to get done.
That would be very dangerous to let expire -- say we're gonna go back and fix it and finally this idea of the Alternative Minimum Tax not hitting until later this year.
That expired last year -- and we're talking about thirty million Americans getting hit with the Alternative Minimum Tax in February march and April 2013.
Ping an additional 3000 dollars of taxes.
This is not a good situation where US GDP they probably can subtract that alone by 2%.
And really put us into recession and so we really got to take these minutes push him off the table -- congress is playing without.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- I would put it -- a 70% odds that congress does take -- remember the election I think Eric Cantor was absolutely correct in the lead to this segment.
The election will determine what actually does get extended into 2013.
-- right this is just a temporary extension.
We are going to do fundamental tax and entitlement reform in 2013.
We just gotta make sure we don't ourselves into recession before we get to that point again Dan take -- yourself you are welcome back -- have busy or any tan you wanna be here.
