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CEOs Pressure Congress for Debt Deal

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    Americans for Tax Reform President Grover Norquist on efforts to avoid the fiscal cliff.

  • Duration 7:00
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Hello everybody -- Gerri Willis the looming fiscal -- nearly twelve weeks away.

From Wall Street to main street it's on everybody's mind top business leaders from the US chamber of commerce to The National Retail Federation.

They -- meeting on Capitol Hill today to discuss the issue and how to get our economy back on track.

Even Wall Street's top CEOs Goldman Sachs Lloyd Blankfein and JPMorgan's Jamie Dimon saying it's time for a budget deal and they're tired of congress kicking the can down the road.

In today's Politico Goldman's -- was quoted as saying averting the fiscal -- would require quote some political sacrifice.

On both sides.

-- feel not alone in wanting some degree of certainty and stability for these markets in.

In -- for investors.

Joining me now Grover Norquist president of Americans for Tax Reform.

-- welcome back to show always a pleasure to have you here.

-- -- These comments from Blankfein and Jamie Dimon from JPMorgan.

They all seem to be on the same page when a little more in taxes they -- a little cutting and spending.

With friends like these who needs enemies -- how you react to what they say.

I think they should read today's New York Times which has an argument about.

The idiot rich businessman in France who said you know we -- do is raise taxes a little -- and out.

Cut spending and they elected French -- Holland the socialist president.

France is now raising their personal income taxes to 75%.

And their capital gains taxes to 60%.

And he's very very Smart businessman who brought this on themselves.

Well right along.

Subordination nobody suggesting that here.

And in fact even the -- -- the president pick up Bowles Simpson and that is a balanced approach which as I understand you're not in favor of.

But of course not it what is talking about was what Simpson -- says it wants to do sometimes.

Which is to restrain spending and have revenue neutral tax reform.

And point -- fact if you do read.

The fine print.

Simpson balls.

It takes taxes from -- and a half percentage GDP it's norm over the last thirty years to 21%.

That is a two and a half percent increase in taxes of GDP to five trillion dollar tax increase over the next decade.

Five trillion dollar tax -- increased.

And the spending cuts of course have all been rejected.

By Obama he put none of the minutes but -- -- anyone -- the tax increase.

At the -- in a nutshell.

People are having to raise the taxes that they that they don't want -- curb the spending let's talk about what happens if we go over that fiscal clip because.

I think at the end of the day you know really got a choice here way to go over the fiscal -- we -- something right so here's what happens.

9% of households see at a tax increase an average of 3500 dollars I may even be citing your numbers shares her eighteen cartons with numbers on this.

Let's -- -- -- obamacare taxes coming to place now this is truly a disincentive.

To saving it's a descendant to win best think it's even a disincentive to working.

So.

What's better we don't in the fiscal clip or or -- we find some kind of compromise.

-- a there's not a compromise to be made because the Republicans if you elect Romney in a Republican House and senate.

Will extend all the bush tax cuts for one year due fundamental tax reform that's revenue neutral not a tax increase.

And passed the Ryan budget to bring entitlement spending down.

So that the total government spending gust from 24% of GDP down to twenty down to sixteen.

If Obama wins -- got a democratic house and senate.

His plan his budget -- spending up to 38%.

Of the economy during that same period a government twice as large.

If you have split government Obama gets elected a Republican House or -- Republican House or senate.

What will actually happen is exactly what happened two years ago.

Which is -- extend all the bush tax cuts for two years and fight it out in.

In two years so there's not going to be a fiscal -- everybody knows that's.

Because if Obama shut down the government in January the Democrats would lose ten senate seats ten of which are vulnerable -- 2014.

-- democratic senate and a Republican House would insist that Obama extend the -- You know for real ups got it got there there's not going to be a fiscal cliff that -- I'm not sure everybody is so sanguine.

I would respond to something else though.

Mitt Romney's been criticized heavily called a liar for some of his ideas about taxation in taxes he wants it.

Cut taxes 20% across the board for everybody to pour the -- the people in between.

-- do that and -- rid of some given it some had.

Breaks and the tax code for wealthy people and come out with anything like a balanced budget.

Well -- -- yes you can bring in the same amount of revenue with tax reform.

But remember Republicans believe that if you -- marginal tax rates you actually get more growth.

When Reagan cut marginal tax rates.

He added ten million more people to the work -- that Obama's tax increase spend more.

Approach you put ten million more people to work that ten million people today who -- we taken Reagan's approach.

To the recession would have jobs that's a lot of revenue coming into the government that's a lot of growth.

As a result so yes Romney's proposal which is cut marginal tax rates.

And rein in spending is what Reagan did and it's what created real jobs we know Obama -- Wear -- -- A lot of growth in the economy however and a lot about job of making.

Let me ask you this question to that point the IMF coming out today saying revising down they're -- growth expectations saying in part they're worried about the fiscal cliff.

What do you think -- and.

Well look we should be very concerned if Obama gets reelected the country's heading for some very difficult times it means obamacare would.

Would -- -- -- in spending and trillions in tax increases.

-- take a fact and get locked in if you have insurance your taxes will be going up you won't be able to keep.

The insurance -- health insurance you now have.

Because you're gonna go after that not just Medicare but you're insurance and tax -- with twenty different taxes to give money to other people.

So there's a lot of damage coming in the economy.

If Obama gets reelected that's why.

The polls that show that that's less likely today than a week ago.

Are very helpful.

To the economy -- may mean we can get through this without another recession.

Well -- we started by talking about this multi million dollar campaign that these.

Leaders in Washington -- CEOs Wall Street and others were putting together it's ironic isn't it Wall Street CEOs who used to seeing them defending themselves in front of congress here they are chiding them for not doing their job.

It's funny that after -- thanks for coming on tonight appreciate your time.

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