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Swiss America Chairman Craig Smith on Obama’s effort to raise taxes on the wealthy as part of a deal to avoid the fiscal cliff.
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-- chairman Craig Smith says the president.
Is playing with fire and where -- the ones who stand to get -- it's like right.
I think it's frightening what will happen here nail I mean these banks are correct and that of course they've -- consensus with the IMF thirty consensus with the CBO.
Fourteen of the seventeen major economists in the -- that this could be not only recession but he severe recession and as you know I've talked about before -- I'm very concerned about another downgrade on our on our debt we need to continue to borrow money no matter how you -- fiscal cliff deal.
It's horrendous for the future of the nation and for mr.
Obama during a campaign stop to go out and say that he would veto legislation like this.
It just goes to show he has no concept how economics work -- You know I noticed got a lot of media attention today it wasn't exactly a fox alert to me in this -- Craig.
This is nothing nearly -- always said that this would be his kind of fiscal holy Grail he would not.
Again extend the tax rates lower tax rates for the rich one more year.
When he did so back in 2010.
It was an understanding that it wouldn't be for too long and the time has come for them to go up so.
Is he just getting in a tough early negotiating point thirty units or do you -- -- something more.
Well I sure hope it's not for that reason -- for negotiation purposes because keep in mind when he went out with John Boehner.
And Eric Cantor back and it's summer of 2011 for raising the debt ceiling.
If you believe what Bob Woodward wrote in his book it it it was ugly.
And that and that the visceral -- taste if you will -- -- dislike that this president has for achievers for businesses.
For people that are good high income earners is just on.
I just don't get it -- I mean.
These like the banks for example which you led with sixteen of these banks say Mr.
President this is critical you can't play politics with.
This but by and -- -- -- years where I think the president might just setting a trap.
We're for down then for anyone who criticizes.
What he's doing maybe April -- -- -- -- he could be saying this look if you're saying that the only thing.
Blocking Armageddon.
Is a tax hike on the -- upon crowd.
Then sign me up for that PR fight because I'm willing to fight it.
How the Republicans and answer that to -- would then turn it around.
Sacrifice.
The economy declares everything you just talked about for -- keeping rates low and the rich.
Well this is simple I mean all the Republicans have to do is point back to history what -- Jack Kennedy do what it Ron Reagan do.
Every time you lower tax rates and use open and spread open the base you've gained more revenues are.
Radio and M and I would one -- you one -- I would say look if your argument a couple of years ago Mr.
President.
Was that you didn't want to besides having the cabin Republicans on extending -- book you save face by saying.
Now was not the time to be raising because the economy is still pretty rocky.
We are actually rock here now that we were that.
And other -- growth of the economy.
Is is less than it was that so -- that argument taken away.
This is really you know a brazen political move that might or might not work but it's pretty clear where he's going to be coming from.
Absolutely Neil this is a 100%.
Politics because you can't look at the map look.
Maybe this president doesn't read his -- presidential daily briefings from his intelligence people.
But he's clearly not reading the CBO report cyber review the CBO report just before it came down in the studio but I don't know that -- -- always do your -- God -- this is there's no look they're saying nine point 1% unemployment.
They're they're saying two million jobs lost -- They're saying look if you extend everything got to go deep in the report to see this they say we could see four to four and a half percent growth in 2013.
If we don't extended you're gonna see growth between two point 8% and one point 7%.
Neil this is a simple equation the president should be saying we have to extend this -- to do what's best for the country.
I'm not gonna trying to gin up my -- because look right now let's make couldn't make sense he's not going after the middle of the road voter he's she's trying to gin up his -- To get support because he's losing that middle middle American voter right.
Well I know clearly a business strategy -- I do think it's part of designee and and getting that base happy.
But I also think.
You know you don't wanna look like you're changing your mind and and flipping on this so worldly so there's a dollar and -- a strategy I'm not saying it's necessarily great strategy but there is a method to.
It's followed -- no doubt -- think about it from a political standpoint he would have to say that he's breaking his word again because in 2010 like you said you know he made it clear I will not do this again.
So if he was to acquiesce on it now he'd have to say that he gave back another promise to to to the left so.
But but but here's the bottom line -- this is what's important to Fox Business is people.
This has ramifications.
If it's not like this is just gonna come and go and everything's gonna be fine the banks are warning the IMF this warning the CBO is warning.
I know my personal business I've talked to business on all over the country there gonna -- in their horns in 2013.
Why not make 2013 year of growth.
Instead of your stagnation.
Why don't we grow the economy first trying to divide -- stagnant economy up he's not making sense you should never promise to veto on this deal.
Or have so Europe clearly not on the -- Barack Obama bin Laden breaks -- down thank you very much could see again.
We got his -- lazy about JD.
