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Greg Valliere of Potomac Research Group argues the GOP may have to give in to President Obama on raising taxes on the rich.
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And our next guest says many Republicans and private are conceding they may have to give President Obama much of what he wants -- -- joined by Potomac research group -- -- -- -- -- -- value -- Greg thanks for being -- so do you think that President Obama.
-- when it super fuel went higher tax rates on the rich and people when deduction caps they get the rich to pay more as well.
Maybe it's moving in that direction I think Peter Barnes in the previous -- got it exactly right.
I think the Republicans in private.
Dennis are beginning to say let's cut a deal on this we'll come back and fight again when we really do have leverage that's on the debt ceiling fight in February.
How can voters have any faith.
And if they do tax hikes now and wait for spending cuts later that will really ever do it given that they never -- not in the Reagan era not in the Clinton Era.
-- very good point my friend.
I think you hit the nail on the head because what I'm hearing is that they may say will will set targets.
Will have a specific target for tax -- forum for entitlement reform and by god if we don't hit that target by summer.
Will have a sequester I -- how many times we got to hear this before the credit rating agencies say enough is enough.
Now you're thinking maybe there's a chance Greg that they do something up -- now regarding Social Security cola adjustments cost of -- it change the form -- pay out less.
As well as Medicare.
Some type adjustment for the wealthy to get less -- -- -- -- more.
Yeah I can see the Republicans agreeing to higher tax rates let's say we go up to 38% I don't think we're go to 396.
But for the Republicans to agree to 38 they've got to get something in return so yeah I think a couple of specific entitlement reforms.
But the key here is the promise of much more are both tax and entitlement reforms next year.
But that means we just kicked the can down the road by several more months.
Now over the weekend New York Times had contradictory headlines on Saturday.
Had a story thank you know many of the rich still aren't paying enough and then Sunday heavily page one came -- and said.
When you know what even if they get these tax hikes on the -- we're only up for the delay -- one point six trillion dollars in.
New tax revenue the President Obama has said he wants.
When -- the media realize that guys this is just the beginning.
Oh sure and if you live in California there's a retroactive.
Tax hike that's gonna hit a lot of people.
You you've got obviously higher capital gains and dividend taxes are threatened.
And on and on and on so I think if the Republicans cave a little let's say they go up to 37.
That's just the first step I think once they accept the premise of higher taxes we go even higher.
All right then maybe they're going after even more tax cuts on more than just the so called -- thanks for being let us -- -- -- --
