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Jerry Seib, WSJ Washington bureau chief, on his meeting with Sen. Mitch McConnell on the fiscal cliff, and the latest developments out of Washington.
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-- -- our first guest just finished up a meeting with Senate Minority Leader Mitch McConnell about the clip.
-- side of the Wall Street Journal's Washington bureau cheap.
Jerry we are dying to know what he's dead what did -- day.
Well he's he said several things that we've Astoria on our website now that -- summarizes this but he says first -- -- that the the his reaction to -- Geithner proposal yesterday was that to laugh about it and they said it was comical and that essentially a non starter.
And that in his view the -- remains in the president's court that's kind of what you'd expect.
Secondly.
He said nothing better is going on in private it's not as if there's there's some quiet talks going on he said.
But -- that have a better town than what we've been hearing the last 48 hours.
But thirdly I think really intriguingly he went on to say here's what we're looking for from the White House.
One entitlements since gone on steps to rein in spending on entitlement programs now.
The jab -- Republicans have been saying we're waiting for something to -- on spending so that we can then maybe have more meaningful conversation on revenues on the other side.
And we asked him what does that mean he said it means that that that we're looking for changes in the eligibility level for social security and Medicare to make them more affordable over the long run.
That means things like perhaps raising the eligibility age for Medicare.
Maybe charging slightly higher premiums for better off Americans on Medicare and slowing down cost of living increases for Social Security.
And he said if those things happen to Republicans those -- changes in in entitlement translate into more willingness to talk about revenues so.
That's probably an encouraging sign because it lends some specificity to this trade off revenues.
-- entitlement changes yeah and Jerry -- okay maybe some more of the discussion over the on the revenue side I'll but all Republicans.
Able to accept the higher tax rates on 250000.
And higher is that negotiable I mean will they would they ever except 250000.
Well that's the key question that's that that add and the answer that is still now and and and senator McConnell made clear that the answer still mild but there may be wiggle room on that you know let's say you don't change the rates -- or let's say you do change the rates slightly but not all the way up to the Clinton rates of 39 point 6% at the top maybe that's one way out.
Maybe you raise the rates but carve out some certain people carve out small businesses S corporations analyses.
So that they they don't go up on small businesses even if they go up on individuals there may be ways to -- that right now Republicans want to talk revenues.
And not rates and that's still the big sticking point here you're absolutely right.
And yet you get the -- out Washington coming out saying they actually wanna spend more money.
Extend -- payroll tax cuts -- really spending to help the economy to boot it just seems.
Counterproductive.
Well the revenues that that we're talking about here way outstrip whatever -- spend on on a stimulus to -- about fifties billion dollars in stimulus next year that may be a non starter but I don't cut.
Think that tips the arithmetic all that much.
Pursue a stacked up against trillion or more in revenues over the next ten years the big struggle here is really.
Tax rates.
Vs entitlement changes and you know there's some there's some glimmers of hope there but vote this week is not been overall very helpful on on suggesting there's a way to.
To square that circle.
And very quickly Jerry you know India's -- stalemate is certainly nothing unusual in Washington DC but in posse is had Reagan and Tip O'Neill kind of coming -- A compromise Clinton Gingrich I just don't get the same sort of Barbara Bain -- -- any compromise at this point.
Well not now this is this may be the week to two -- each other and maybe the next two weeks -- -- weeks to get beyond the shouting in come together but I think you're right on the dynamic this is in the end going to be.
Everybody seems to agree a deal between Barack Obama and John Boehner.
Others are players but those -- the two main players -- they have to figure out how to get this deal done.
-- war of the roses.
Yeah the gist that I Washington bureau chief with a lot we can all thank you -- -- -- -- -- -- very cat.
