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Ike Brannon of the American Action Forum and Michael Linden of the Center for American Progress on the fiscal cliff.
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I had said.
And it is time for our why don't debate this.
Segment this time on the fiscal -- congress has basically sixteen working days to fix the tax increases the automatic spending cuts -- -- Take effect on January 1.
-- debate this I Brennan.
-- -- And Michael Linden -- the Center for American Progress -- -- -- Michael you're on the left side of the debate so let's show the scenario.
Obama wins reelection Republicans retain the house -- and retain the senate.
It searches the Republicans are in such -- -- That they let this fiscal -- actually occur and they don't agree to kick the can down.
Room yeah I think that's possible I mean this is house GOP especially that has been shown -- willingness to hold the economy hostage.
To thereof particular wins I'm hopeful that in that scenario you just outlined they finally say okay look we just had an election about this the president one.
It's time to give up this this this -- -- reasonable stand and we can come to some negotiation and avoid the worst the fiscal -- -- what do you think -- Republicans weren't gotta compromise even if Obama wins reelection.
I think they're related to a compromise but I think they want the other side to give something as well I think what concerns Republicans is that.
Increasing taxes on people making over 250000.
Affect small businesses and -- Michael's Will Smith at that.
But I will when I willing to bid because it's not really any small businesses yet final national public debt -- over -- over -- Over 25 million people work for small businesses whose whose income whose business owners file as as its incorporation so.
A lot of people will have their jobs on the line here.
You're -- Michael letting you beside the bush tax cuts as going a long way toward helping solve that fiscal crisis in bars and all that debt.
But the bush tax cuts on the -- -- -- eighty billion a year and president Obama's been overspending the budget one point one trillion dollars per year.
How -- eighty billion help reduce that.
Well first of all -- in the -- not overspending by one point one trillion that's the deficit that's a difference between revenue and spending revenues hello.
Yeah but go ahead written -- -- -- revenue -- gone way down during the recession and because of yes you guessed it the bush tax cuts so we actually don't have.
Have that much of the spending probably the next few years we do have a spending problem in the long run.
But in the next few years it's really about revenue we are revenue levels are way below where they could be or should be bright and yet but when we cut those tax rates.
Revenue went upbeat no that's not -- -- don't do this again I love my gosh.
I think seven straight please.
This -- with -- on this if we do.
If we do increase these these tax rates where it's gonna it's gonna generate revenue but I I think what the Democrats are planning right now.
-- the fall back on the on the Pelosi and Reid plan to increase the top rate on the upon people who are making over a million dollars year.
And that might sound -- everything but that raises only be nineteen or twenty billion dollars so.
The biggest problem is is that we have an entitlement problem and it's not five or ten years down the road right now Social Security is running a deficit.
Medicare is about to run a deficit and this president hasn't really been all that all that interested in fixing -- in fact he's been all -- the demagoguing this for this last campaign.
Michael -- both parties seem to be making dark warnings about these terrible automatic cuts in defense that genre but.
With that huge amount of spending can we cut -- some without heart -- -- I think that we could actually cutback in defense but don't forget we actually -- have.
We already put in place one point two trillion dollars in spending cuts.
Abdel about three under 400 billion of that comes from defense the other the other portion comes from non defense that we actually have cut defense a little bit already.
And and so maybe we could find some more savings but these automatic across the board cuts.
Are just a bad way to do it I think both sides agree on that all right I -- Mike thank you very much -- -- and Michael Palin appreciate you being here think.
