Fiscal Cliff Talks Avoiding the Main Issues?
Forbes Media Chairman Steve Forbes on the fiscal cliff negotiations.
- Duration 6:07
- Date Dec 18, 2012
Forbes Media Chairman Steve Forbes on the fiscal cliff negotiations.
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-- -- -- The debate continues in Washington over the fiscal -- the White House immediately rejecting house speaker John Boehner has.
Please be proposal earlier -- it shifts the tax burden back to the middle class but if Republicans do agree do a deal.
That includes tax hikes it will be the first time in history -- GOP controlled house has passed tax increases.
Make history for all the wrong reasons here joining me now -- a Fox Business exclusive.
-- and editor in chief of Forbes media how possibly gonna follow that panel where you sitting there sweating about back as they were pretty funny.
-- they weren't good good amusement that we don't have that from Washington I know well different kind of black comedy from Washington it is a different kind of comedy the way they are what -- think what you saw today.
Well I think what you see is the speakers trying to surrender.
The White House won't accept it they keep raising the ante they did that a year and a happened on the summer of 2011 debt ceiling crisis.
Boehner made a huge offer of caucuses caucus probably would've protected it had a hard fight and the White House slot from away.
Yeah a lot of people are seeing the same thing about this today that speaker Boehner is that they're negotiating.
But who is he really speaking for he may not have enough support to drive home whatever deal he's making we could see that -- this plan B that's out there.
Does he really have support of his own party.
In the house to raise tax.
-- I think he did he talk to house leaders after the election said hey look what the results were.
And I think he feels even if he loses part of the caucus and -- vote the Democrats if they go along with this will supply the votes to win.
But did you see today the White House still wants more more more and -- not giving them even a fig leaf to go back to -- caucus in terms are reforming entitlements and things like that.
Yeah yeah you definitely get the sense that all they're talking about at this point is raising taxes -- -- -- -- moving this number of who's gonna have to pay more now the president says as part of their being negotiation -- we're calling plan a that he's willing only raise taxes on people make more than 400000.
All of -- only generates enough front of revenue to run the government for 345.
Days depending on which number you look at.
Yet -- a nickel on the dollar and doesn't get to the real problems which is a weak dollar doesn't get the real problems have been spending.
The mammoth regulations coming with Obama care of the real things in the world yeah so this is a diversion.
-- isn't that.
-- -- brought about that anymore I mean -- destructive one we're not hearing about people talking about real spending cuts.
Real government reform I mean it it's gonna feed the beast rather than starving the beast at this point is there any hope to turn around the conversations -- -- electorate.
This while the Republicans can turn it around they could have just passed bill saying everything that's on the table put off for six months were not -- do between now and Christmas.
And they also could start making the point Europe and Japan have been doing this -- a couple of years now.
Maps massively raising taxes Japan's now an official recession Southern Europe is contracting.
France and Germany about -- -- recession what can't you guys learn -- taxes higher taxes don't work.
But it seems like the public at large has not bought that argument that Mitt Romney tried to make that argument a lot of people try to make that argument hasn't worked.
What he emphasized what what's the best way to get this economy moving again means to end instead of fighting on the democrats' ground establish your own ground this is about growth.
-- higher taxes do not mean growth greater spending does not mean growth.
Mammoth regulations taking way health -- control from patience is not gonna lead to growth shall fight in your own turf and so the voice -- the turf for the Democrats.
Did -- how would you get your master negotiation.
You know -- someone that knows much about this how would you reset the negotiation right now is it even possible.
Well toss out a few grenades like at a -- passing in the house that if entitlement reforms they cannot take any benefits away from existing beneficiaries.
Love the C -- reject that one.
How about another bill passing saying cannot take money from Medicare to finance Obama -- Democrats -- choke -- because exactly what they're doing.
So go on offense on those kind of things how about Social Security with their worthless IOUs.
How about having the bill saying convert those I used to marketable bonds -- -- a debt ceiling crisis he can still make Social Security payments.
-- aired at some incredible -- from the show yesterday breaking it down very simply that every day in this country we -- in five billion dollars in revenue and we spend eleven billion.
How can we keep going at that -- I mean that's an incredible gap.
Between what well -- what we're just -- subject the Republicans you have to learn about of the Federal Reserve printing money what you have there.
As the Federal -- making it possible for deficit without tears.
The government borrow the -- about our -- very well.
And and doesn't have to pay interest match matching go to UA TM gives you much money -- -- -- no no interest don't have to pay it back hey that's a pretty good thing.
-- what it's still and Republicans emphasize this.
Is taking capital and credit away.
From small and medium size businesses and feeding the beast you're watching eliminate that point though because I always trying to make that point I feel like it's so hard to get people to realize that.
How do you say that this is crowding out small and medium sized businesses but -- saying why are small and medium size businesses specially fourth year -- the supposed recovery.
Not making investments not adding jobs the way they should -- because the government's eating all the money yeah and -- hammer it if you don't you know saying it wants is gonna do it.
-- if everyone saying it may be it's gonna start to get through we've been having some fun with our money meter lately on the scale of one tip money.
-- what's the likelihood they get a deal done here before Christmas I'm -- -- -- -- jetliners -- -- I'm just wondering of the Democrats want a deal I think they feel so.
Sure themselves right now but -- quite willing to go into the new year and saying look we're all these bad things are happening these Republicans still defending the rich -- I -- willing to go up a half a million and they still walked away blah blah blah.
And they don't define the terms Republicans -- to be on defense and yet again seeking zero we're not gonna get a deal here.
It -- -- I think for the Republicans are trying to cave and a and the Democrats won't let them.
8% at C opposing it doesn't answer -- FaceBook you gonna stay away from that after that discussion off I have one appeal post -- -- workspace so what it later.