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The Weekly Standard’s Steve Hayes, former Deputy Treasury Secretary Roger Altman and Manhattan Institute Senior Fellow Diana Furchtgott-Roth on the ...
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Close up slightly.
We start with the Republicans counter offer in the fiscal clip negotiations house speaker John Boehner.
Causing a flurry of anticipation today now that he says he's willing to raise taxes on people making more than a million dollars is a huge step.
And guess what not all Republicans are happy with -- the speaker says those hikes.
Must be balanced by cutting entitlement programs and he spent more time with President Obama to -- trying hammer -- a deal without a money power panel here.
Help sort this one how Roger Altman -- former deputy secretary under President Bill Clinton.
Diana first got rock is a former chief of staff of president George W.
Bush councils of economic advisors and a senior fellow at Manhattan institute.
And Stephen Hayes is the senior writer at the weekly standard and a Fox News contributor welcome to all of you Reggie is the real deal.
Well I think the chances for and an agreement.
A serious agreement.
A major agreement are improving.
As we see these additional details.
This is taking the pattern -- -- are familiar pattern that down often -- in Washington.
In terms of grudging progress you know the two sides each laid out aggressive positions initially from the point of view of what they want and now we're seeing some.
Hesitating progress but progress towards a middle ground.
And it's a difficult thing the the politics of this very hard.
But I think the chances for an agreement are improving.
I think there's going to be an agreement and I think it's likely to be before the deadline.
But we don't know that yet.
Yeah we don't know that I'm Diana is still seems like there's a lot of distance the middle between the two sides at this point.
There really doesn't data has -- very five in offering that tax increase that tax rate increase -- -- million ads.
We all know the problem in Washington is spending spending has risen to 25%.
Our GDP government spending and what we need to do is get that spending down it's very disappointing that we haven't seen anything from President Obama on cutting spending.
He says -- 350 billion in health care spending cuts in the Affordable Care Act.
But as we know from the doc fix what's likely to happen the 27%.
Cut.
In physician reinvestment -- Canada congress rolls back.
Year -- yeah.
These cuts often don't happen.
Yeah needs serious entitlement reform such as being a proposed raising the eligibility age and changing the indexing of benefit -- Without question right -- -- close to that I mean Steve when you look at these numbers and a lot of people think appearance got a great distance today.
We're still talking about 460 billion dollars that's about two point 8% of the national debt in other words it's almost nothing.
Right exactly and I think that's the key contacts for all of these discussions and by agreement -- that I think we've moved closer to -- does some kind of an agreement.
I woods it's I would stop short of calling it a big agreement -- -- this is this would be a small agreement.
I think -- -- in the broader context and of the debate in the broader context of the kinds of entitlement reforms and spending reductions that we need to see.
This will most likely be sort of a patchwork deal with things -- together at the last minute I do think that the week between Christmas in New Year's.
Is likely to be key.
And it won't do much to change the trajectory if anything to change the trajectory.
Of our country's debt pressure where do you see the middle right now.
Where's the point of agreement where do you think we end up.
Well I think there's going to be a buyout.
A four trillion dollar agreement.
In terms of the amount of deficit reduction and now we have to spend.
Some time right here going through each of the elements there right but it'll be into phases as everybody has already acknowledged.
Phase one will lock in certain spending reductions and certain.
Revenue increases but there isn't time to legislate every detail of that so we'll be a second phase which completes the process tonight.
It's it's it's inch and obviously you see what the enforcement mechanism is that second favorite -- we don't they're gonna even feel like it could be exactly what we have right now or we say.
We're gonna agree on this we're gonna raise taxes right away we're gonna take care of the hard work later on down the road.
And give them an opportunity and we -- a lot of it down around.
No I don't think so Melissa I think that from the democratic side they're going to want.
And enforcement or guarantee that the revenue increases happen -- from the Republican side the same thing on this on the spending side on entitlement reform.
I don't think you're gonna see just a bunch of promises to do things later because I don't think either side and buy into that.
Diana what's the key to about is it may be -- holding on to the debt ceiling not get as your -- down the road.
Possibly it is the name one thing to remember is in order to get out of this fiscal hold -- -- we need revenue growth.
We're not gonna get revenue growth if we have a lot of tax rate increases because that's going to choke off economic growth.
We get from -- revenue from increases in GDP.
And tax revenue from that at current rates that we do by increasing rates on whether it's million dazzle people making 250000.
-- law.
Which is going to choke off growth.
And substantially reduce the incentives to invest only combat ship has -- no one's talking about growing economy right now I mean there there is no they're not there in this disaster at all taking down and that's -- -- is refusing to increase taxes look -- has because he doesn't want -- -- down an economic growth he's talking about it I I don't -- -- Funny -- about that.
Well I don't I don't think he's talking about a much an easy you know that that they derive -- that this ship has -- this position that frankly -- -- that the campaign I mean remember Mitt Romney -- that last.
President of the -- didn't make much of that argument he instead spent most of his time.
Telling quote unquote the rich that they were not gonna get any benefits from his tax plans it was an entirely.
Defensive case that Mitt Romney was making in the context of the presidential campaign I think with the president having won the -- won the election.
These -- the kinds of things that he was likely that he was going to pursue and Republicans.
Can't start making an argument now or or they can't I guess for for purposes of -- framing the debate.
But it's a little late for them to be making those arguments now on the AdWords lets -- so well so.
Hello my kids -- -- yeah didn't that's the Republicans wanted a chance to the second hand on Roger let's keep some.
-- one very basic thing in mind.
We just saw last week and NBC Wall Street Journal poll it's the same as all the polls that have been.
Taken on this subject -- this is the most recent one.
And the polls show that 68% of respondents support.
The president's position on tax policy on raising taxes on higher earners so it's not exactly surprising that we're gonna see that as part of a deal because that's what what -- -- the American people want and I'm with the election is all I brought that up because only two thirds of people want to see taxes raised but it would only affect 2% of people.
So there's a whole bunch of people whose taxes wouldn't go up and they still don't response support raising taxes on other people.
They must really think that's gonna stall the economy that other ferret armored -- that's a very creative way of looking at it but the election numbers tell -- you look at -- what you think -- election was held in the people spoke Diana -- and well what.
Yes the president won the election the Republicans did win the house tax bills -- -- -- in the house beta in several speeches he has made since the election.
Has made the point he wants to raise revenues.
By increasing economic growth it's right there in his speeches you can read it so he is making those points.
That is why he is loath to raise taxes okay on anybody from knowing comes -- -- We gotta go great panel thank you so much thanks to all of you for joining us.
