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Former CBO Director Douglas Holtz-Eakin on growing concerns about the fiscal cliff.
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With negotiations stalled on the house out of town are we going right over the fiscal clip let's -- dot hopefully get.
American action -- president and the former CBO director.
OK Doug that you know -- house is gone and there shouldn't.
What how -- people leave we have in the biggest fiscal crisis.
I don't know how long something they -- actually do something about I mean it's one thing they have.
The big recession it's another thing when the problem is of your own creation and you turn your back on it what do you make of this.
Well it's certainly very dangerous situation I couldn't agree more -- -- if we go over the fiscal cliff -- it's not just the taxes will look sharply 395.
Billion dollars or that spending get slashed.
We'll see very better market reaction that the markets we'll see plunging consumer confidence and this is a recipe for recession something no American needs to hear about right now so getting past fiscal -- imperative and -- we really are having once had a conversation.
That Republicans have put out a plan which they.
Raise more revenue from rich people which president wants its balance that has genuine spending cuts and that landed with -- I thought over the White House no real response and the president has he -- to put out a balanced plan.
What we've gotten so far as I want one point six trillion dollars in tax are -- please give it to mailing and let's get rid of the debt ceiling that was -- about -- -- -- we've seen this movie before no right ceiling helped take the tax revenue will spend it won't back here now what.
So well said and so I'm spending cuts are in place is none of this makes any sense I want to hear -- Ann Coulter said about this whole debate here's Ann Coulter.
But doesn't mean you came on everything but there's some earnings Republican -- But feeding into what the media is telling.
It's telling America about -- would easily and I wanna make sure understands who he's saying then.
For PR purposes that they should give into Obama on the tax rate I'm not exactly I think its.
Well I guess I am but I -- you can now capitulate to Obama who's.
That we don't have a revenue problem and we want state elections -- SF I really make it is because -- -- strategy.
Maybe it's like a big not to the American people voted for the president put it back in office.
It's all on -- It's it's very simple I think Republicans are cognizant of what the people said and the plan they put out does raise revenue and from rich people and I think all they're asking for is for the president to give a response that includes both tax proposals in the spending proposals that are necessary to make the plan be balanced.
And they'll they'll negotiate from there from the second day after election speaker Boehner said.
We hear the American people -- they want Washington to work that means compromise they want leadership.
Once you know we're.
That's always -- you -- about this idea.
Of saying okay Democrats it's on you you wanna raise taxes you wanna -- we're putting the economy into recession.
Have -- -- That's the that is essentially what the White House is up to right now they have said.
In an arrow where Americans want compromise and -- -- -- the president saying I will not compromise right this is what I want and for that political agenda I'm willing to over the cliff the secretary of the treasury.
The highest economic officer in the land said -- -- prepared -- over the cliff.
That's think American people we don't care about a recession we don't care about the unemployment it creates we have our agenda that's more important.
Well and and that and the cost of that could be a -- 7700000.
Jobs up to two million jobs I certainly a recession most everybody predicts that.
I want to talk to you though about the debt limit because we talk about that -- -- for a few minutes Mark Zandi an economist at Moody's who's advised the president over a number of years had this to say about getting rid of the debt ceiling limit.
We need to get rid of the debt ceiling -- its anachronistic.
And it's a problem.
What do you say to that.
It's from a hundred years ago and it was put there for reason it's part of the balance of powers in the congress and the White House.
And it's not a problem.
The problem is the debt has hit the debt ceiling is not the problem.
The debt ceiling is an artifact of the fact that we have too much debt we're projecting to have even more debt.
And the problem arises when in raising the debt ceiling one side fails to -- knowledge that you need to control the debt.
And that the only way to do that is to have real spending proposals that that -- spending -- you know Italy.
If that's current perhaps that's it hit show any control at all when it came to spending.
Maybe then you to talk about doing something with the debt ceiling but without a hat and it will protecting -- -- that it's our checkbook right.
Right and Jerry you know.
I've been -- now for quite -- -- this town loves to talk about taxes must have been doing now but taxes have gone up they've gone down they've gone sideways.
Spending has only gone up rates time to focus on the problem.
Well and and the budget just gets bigger and bigger no matter what happens right I mean everything -- -- -- ticks higher.
Federal taken place comebacks in -- my pleasure thank you Gerri thank you.
