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Where are the Spending Cuts in Fiscal Cliff Talks?

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    Political commentator Pat Buchanan on the negotiations to avoid the fiscal cliff.

  • Duration 5:59
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This transcript is automatically generated

All right.

When you make that available.

Me being here if you catch my job -- have your restaurant.

It's one of my favorite things caught on -- to remember that guy a alleles that company and watching them.

As nobody wants their junk -- -- -- the Congressional Black Caucus leaders dramatic entitlement cuts at least for now let's say out of these debt talks.

Bee -- they pretty much the same thing right that it had -- as its very heart.

To cut a deal when no one is cutting the budget we've been slowing its growth.

Patrick of that is the reality in the -- -- is designed to would have to the governor of Delaware.

Three -- -- favorite tax hikes over spending cuts -- that that is a best case scenario right now.

Well the I remember was Ronald Reagan when I went to work -- in 1985.

He came to me and said that.

They promised me three dollars in spending cuts for every dollar in tax increases.

And they gave me three dollars and tax increases for every dollar in spending cuts he felt it really he had been taken to the cleaners.

And that -- -- -- bill I think it was 1982.

And it was on its mind the rest of his presidency.

And Republicans are headed into the same trap.

I think what a lot of Republicans here it's one thing about.

You know elections -- -- consequences on of the united disagree on this that there are a lot of people who don't like -- -- I don't like tax hikes but the president campaigned on hiking taxes on the wealthy I think.

As marxism against -- they've got to go that's gonna happen that's gonna -- -- but.

If that's a consequence it's not.

The other continents -- do you do you Republicans losing your backbone and -- resolved on the issues that are near and dear to you but they're folding like -- it's on.

One issue after another what kids.

-- lord gives his I think they realize.

Their -- got a gun to their head they're being told by the president.

Either you're gonna give me an increase in the tax rates repealing the bush tax cuts and increase in the tax rates from 39 -- from 35 to almost 40%.

And if you down under and I sit here and we're going to over the clips and everybody's taxes are gonna be raised doing is just.

-- -- I'm reading then I'll call his bluff or or what it would I don't think.

I think that President Obama is last frightened.

Of going over the cliff.

Then the Republicans are and that's why the Republicans are -- all the concessions and I tell yet if we do go over the cliff here's what he would do -- He would say okay now everybody's taxes have been raised I didn't want this it happened because Republicans wanna -- stand by their fat cat friends.

Well out -- what I'm reduce their taxes are gonna stay where they are increased.

And I got a tax cut for 98% of Americans which I'm gonna send -- -- -- hill.

You know as soon as congress gets back here we're gonna restore the bush tax cuts for the middle class and the working class.

But the rich are finally -- to pay their fair share.

And I think the country well.

Applaud ceiling you -- -- here also -- that's why Republicans fear.

That in that scenario they lose.

Well -- -- then you're in a lose lose situation the only thing Obama got a fear is this.

If he plays it hardball.

Any takes us over that cliff and ordered to play the savior beyond the clip.

Then it's possible that we could have.

-- real downturn.

A real recession.

And a real problem in the economy in which case.

Barack Obama will not escape the historic reputation.

Of the Democrats Herbert Hoover.

You know no president Republican or Democrat liberal -- conservative.

Invites a recession on his watch assuming that that is what happens if you get to this cliff.

That's what happens so.

And he must snow the white -- -- -- the president must know that that is a very very big gamble.

And is a big gamble.

But he realizes that he can move immediately.

To restore the tax cuts for the 98%.

But certainly he is not without pressure.

-- he's got is you mentioned on the black caucus -- the liberal percent.

Look we didn't win this election showed we could -- -- the programs.

Medicare or Medicaid Social Security obamacare.

That are up.

How does your right and there's zero appetizer -- children zero appetite more but here's a word he's been and I hope on this reading these -- -- that.

These numbers are a lot of deals they have going after the rich go after the -- -- -- little appetite for addressing spending and I'm wondering whether.

The country's shifted to the money -- we like government the more the better.

Shut -- you now you I think you're catching on a very important point I think you are largely correct.

The point is we've got 48 or 49% of the country getting.

Direct benefits from government.

And 4849%.

Paying no taxes look at the Republican constituents.

There a lot of those folks who -- seniors.

Live their whole lives they depend on Social Security.

They depend on Medicare.

And here we got the Republicans are not only -- we're gonna give some tax increases Mr.

President.

We're gonna shave back Social Security we're gonna -- back Medicare.

To what constituency.

Are the Republicans appealing I think one thing they ought to do.

Is -- to build a Harry Reid saying you're not gonna raise Social Security taxes.

From four point -- six point -- -- we'll take a thousand dollars right off the top of the income of a couple making 50000 a year.

A couple -- 100000.

2000 dollars right off the top of a huge share of their discretionary income.

Republican party's gonna have to go back to the drawing board and really decide who and what it is and cool.

It represents.

But I got to get a backbone first -- well wait so much of that is a requirement.

That turquoise supplies of my friend thank you very much.

Thank you Pat Buchanan -- taxes -- so.

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