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Steve Moore, WSJ senior economic writer and editorial board member, on whether Congress will raise taxes in order to stop sequestration from kicking i...
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So the president may be calling -- congressional leaders to work together but Senate Minority Leader Mitch McConnell seems ready for -- -- -- he told our first -- congress has a voter mandate.
Not to raise taxes joining us is Steve Moore senior economics -- at the Wall Street Journal and Steve.
Updates -- hopping on the phone to talk to us because I was really interested in this interview that you did.
Mitch McConnell said over the weekend quote let me put it very clearly I'm not willing to raise taxes to turn off the sequester what do you think about that.
Yeah it always interest in molest he was in a very combative mood and one of the things that really came through -- my.
Interview with Mitch McConnell it was in the paper this weekend disks there's no love lost between these guys I mean that there are some real raw feelings.
Mitch McConnell was very frustrated by what happened in the last round of negotiations on the budget.
-- remember that happened back in late.
2011 which is by the way where we've reached this fiscal -- because they couldn't reach a deal and now they've got these automatic spending cuts out.
I think what really came out of that that conversation -- Two things one is that the Republicans are suspicious and getting NBD's.
Behind closed door meetings with were probably because they don't quite frankly -- -- The number two would they really do feel very strongly.
That they are not in the capitulate on this issue of gov raising the tax rates state they stepped -- will be flexible on raising out.
Now revenues but we're not gonna raise the rates because we honestly believed.
This is gonna hurt the economy and by the way you heard dot.
You heard -- speaker Boehner make that same statement earlier.
Yes so what your impression.
I think from talking to him one on one do you think we're gonna go flying over this -- yeah.
Well there's really two issues Mala -- and one of these I get annoyed added this idea that is that somehow this spending cuts that.
The automatic spending cuts gonna hurt the economy -- I don't believe that in fact I think -- supply.
The -- why why do you not believe that has there does seem to be logic to that has.
Well I don't think so I don't think the reason of Wall Street as it is tumbled so much and last week has anything to do what the spending cuts amid.
We've -- -- spending cuts were coming for the last Europe.
It doesn't it it has to do with raising taxes -- -- -- -- capped gains -- exactly if you cut spending all of a sudden how would that not hurt the economy.
Well because you liberate private sector activity -- I went through the last.
Five or six times in this in the last -- hundred years when we actually cut spending it doesn't.
Happen very often as you know mullets in Washington in every instance the economy grew because they.
I think you know look if you cut spending you make more money available the private sector but -- the attitude the cutting government -- or hurt the economy.
Is the same attitude that that they gave us the fiscal stimulus -- which was that.
Increasing government spending which cannot reduce unemployment and -- our economy grow and that didn't work out so well.
So I think those are two entirely separate negotiations.
What are we do about -- spending issue and as you know.
A lot of the Republicans are wary of that the cuts cuts because they think that -- You know we just can't afford it not from an economic standpoint but from a standpoint of national security.
So Steve give your bottom line what is your -- what's gonna happen here I you know which always easy to predict.
More so when it comes to Washington politicians that the gonna -- You know that's aren't -- -- protect marriage and I think that's what's gonna happen they're not gonna probably do these spending cuts even though I think they probably should.
And I think you know -- comes this tax issue I think that's where you get -- -- the real knock down drag out they could drag -- for many months.
The president may just say okay we're not gonna have what I can do any of the tax cuts this year will go -- 2013.
With.
A 150 million Americans facing higher taxes and then just have a take that case to the people.
That would be a real in your face you know.
Maneuver by the -- that -- -- -- may well -- -- -- sounded very combative himself.
When he gave his press conference on Friday.
OK Steve Moore thanks so much a lot of interesting color there -- this is definitely.
The question of the moment so we -- we appreciate your -- so much have a greater.
