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Douglas Holtz-Eakin, American Action Forum president, weighs in on the latest fiscal cliff details, and why he believes government will go right over ...
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President Obama digging in even deeper on his fiscal cliff stops earlier today saying well we're not gonna come out way out of this deficit.
And it stops -- the raising tax rates.
On the wealthy but my next guest says this rhetoric from the White House could drive us yet right over back cliff joining me now is Douglas Holtz -- -- Former director of the Congressional Budget Office.
You know you numbers -- We know.
The fiscal cliff is gonna have a huge impact that we -- over -- on this economy around before we get into the details but we real danger of doing just that.
Absolutely I mean this is an enormous hike in taxes for 94 billions of big cut spending -- 140 billion.
It's you know I hit to GDP that's 4% when -- growing -- wanna -- This is all the makings of of just a real problem and I think the fallout on some conference on markets would be severe so.
I at least think going over the cliff is unthinkable and something we should not contemplate.
-- -- that the fundamental differences that the Democrats say look we got to raise the taxes on the top 2% and us.
Republicans putting forward their own proposal saying revenue can be sold through eliminating these deductions is there any give.
-- -- -- -- that well I I think there has been some give by the Republicans remember what they've put out was not their preferred budget.
What they put allison's mother of Ryan budget that's but that's for sure and what the press something that was basically got -- carbon copy what Erskine Bowles presented to the super committee and it has only you know one dollars and in that sense of spending cuts for every dollar taxes that's a long way from where they would have started com.
It was intended.
To be a good faith effort to raise revenue on -- Americans it does that raises an hundred billion dollars a lot of -- the top.
Pot to put on the table some spending that they thought was appropriate we need to control spending there's no way around that everyone who looks at the numbers says a balanced plan has more spending cuts and tax increases.
And the White House immediately dismiss that is unbalanced and that the troubles in the at least because.
Don't they put out a plan that had one point six trillion in new taxes.
It to close the deficit by one point six trillion which means there was nothing really on the spending side that doesn't straighten his bounced and there are still very far -- What is the bottom line -- doesn't deal get done before the deadline.
I -- -- am sure will but I'm we are seeing.
A hard push on the political agenda the president particular saying you know.
My -- -- the highway that's not the words of compromised by Tom and it the claiming a mandate from his from his election and my I think we're gonna have sea change in behavior where we see some some genuine recognition that the election was a message for compromise not for those particular policies.
From Tokyo time -- already out of time but -- thank you so much for being here you.
We'll follow it -- calls but it's as you say your kids get -- of -- -- -- getting agreement.
Exhibit frustrating I think for people you know all of us at home like just just -- this we know what -- and -- them.
This is my mother like -- come down and snap back -- to appear at.
I'd love to see that yet it's -- I systems so what is pop the champagne I think when the fiscal -- its output until.
-- sales of the luxury item filing by nearly 5% at first three quarters of this year.
-- economic woes in both Europe and US have caused many to shy away from expensive tastes.
Champagne makers have attempted to offset the decline with price hikes the industry is still only forecasting growth of just over 1% in the next three years.
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