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Should Republicans Walk Away from Fiscal Cliff Talks?

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    Forbes Opinions Editor John Tamny on the fiscal cliff negotiations.

  • Duration 4:08
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All right well guess what as we take closer to 2013 and the threat of falling off the fiscal cliff jump Tammy.

Full opinion is that -- -- some Republicans should just walk away and not give Dana by all accounts from what we're hearing -- -- framework.

John is appears that the Republicans are caving on these tax hikes -- walking away is -- a risky thing to do it.

PA gets -- -- they're not taking my advice but down.

I don't think they're going in the right direction here let's be fair here this is a very large tax increase that they are voting for.

As we all know the -- the top earners pay the vast majority of federal revenues.

So the -- to the Republicans really wanna be on record as having voted for a tax increase.

In concert with spending cuts that we know will not occur I think it's a really bad deal for the party.

Better to wait until 2013.

We've done this before haven't we tax now we'll get to the spending cuts later they didn't really work out that -- did it.

Absolutely and it's not gonna work out this time no future congress.

Is going to be constrained by the decisions made by past once you know you'll never get any of those spending cuts.

But the Republican Party whose brand is very is largely built on being principally against tax increases on the idea that we have.

Basically spending problem not a revenue problem will be on record as having voted for tax increases in return for nothing it's really bad deal.

Well what we're hearing on the framework.

The limits on the tax rate increase is -- 400000.

For an individual 450000.

For a couple.

If that's the case what kind of impact will that have on the economy do you think.

-- Citi.

Yeah it's it's gonna have a fairly substantial wonders what we have to remember is that we are reliant in this economy on the vital feud the Jeff businesses the late Steve Jobs to friends and as a FedEx.

Those are the top earners people willing to take a risk on a new idea or -- company that improves our lives.

And employs us why then would would the Republicans be voting for something that basically takes aim at the most productive.

It would not be for the getting good for the economy again it would be a very large tax increase precisely because the top earners.

Pay them vast majority federal revenues.

You know talking about the vote as the people of this country has some interesting messages we have President Obama reelected but then Republicans hang on to the house what kind of message does that send to the lawmakers.

I think that sends a very clear message that the voters basically said we want divided government we will let President Obama have a second term.

But we want the Republicans who control the house and and that's where tax tax legislation originates.

To basically hold the line on taxes so I feel like the electorate also.

Has made it clear Republicans it's your job to protect us.

From economy strangling tax increases for them to reverse that -- I think the Republicans it's a very quick path from the Republicans back into the minority in 2014.

Is all of this a full run until -- debate over the debt ceiling.

-- sixteen that you bring up the debt ceiling I think that's what the Republicans -- view I think if if they basically walk away from what's a bad deal.

They have a lot more power going and ended 2013 -- that did basically present Obama's gonna have to deal of them.

On the debt ceiling why not negotiate from a position of strength and 2013.

Any tax increases in our retroactive.

Rather than given -- and and basically do great harm your brand in the near term in return for nothing.

Basically what lesson do we let and then John -- indeed we take your advice and just walk away all the Republicans walk away and just fall off the cliff.

Well the lesson we learned is that Americans will still get up on January 2 and go to work because that's that that's what they're going to do you.

The other lesson we're going to learn I think from this is that politicians whether they're Republicans -- -- or Democrats live to spend your money.

So any time they're not passing laws and taste were much better off.

Very good we'll leave it at that John Tammy Forbes opinions editor.

Joining us from the place -- -- folks -- under the microscope right now DC John thank you so much we appreciate it thank you very much our.

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