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Rep. Scott Rigell, (R-Va), and American Enterprise Institute Economist Phillip Swagel on why more spending cuts are needed in any potential fiscal cli...
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-- -- So let's continue our discussion on what's ahead for the country as of tomorrow.
With regard to the cliff congressman Scott -- welcome also joining us is eight EI funds Phillips wiggle.
Gentlemen welcome congressman to you think you're in favor of raising taxes although he signed Grover Norquist pledge to not raise taxes are now rebuking it.
That said as he watched the final negotiations.
We're hearing a framework of a deal.
450 K for joint filers being the cut off which classification of earners you -- believe we'll see their taxes increase.
Well -- it's very difficult to understand where we go from here because I haven't seen the agreement.
And when I look at what my colleagues.
Really objected to and what was referred to as plan B it's difficult to understand why this plan is anything other than.
A worst plan there aren't any real spending cuts as -- -- -- So -- have a difficult time with -- myself but I'll wait until like final decision until I see it.
I'm sure.
-- -- to you now.
Let's talk about this issue of spending cuts you raise a wonderful point in that there are so many federal expenditures that are exempt from budget cuts the entitlements.
Also the interest payments on the national debt.
That said we need bigger entitlement reform and -- -- this is the big picture issue here but.
Any of these cuts they're negotiating right now to avoid the cliff and -- not meaningful so are you all optimistic that we can get the discussion.
On -- meaningful entitlement reform.
You know I'm -- I'm optimistic that we've avoided the worst part of the cliff.
But I think we've seen the Red Line for the president that he really can't talk about entitlement reform.
His party is really pretty locked in against it and we see -- with the end of the change in CPI for example so that I think that's going to be the difficulty is allowing the president to have this moment today.
And then move on this -- but the real physical danger of out of control spending.
Congressman what do you think the best case scenario is where we stand today how will we wake up what we see tomorrow morning on the new year.
-- -- -- I -- say exactly -- I think there's just a 5050 chance that anything will pass before.
Midnight tonight.
Look to be able to process to to review this bill.
In such a short amount of time it's really not fair to legislators I don't think in that sense of the rank and file those of us who -- not privy to that.
First -- discussion right.
And let me know -- -- ever time and there's a lot of breaking news right now we're finally getting some numbers but this threshold.
On the wage -- some of the other issues unemployment extension Viet doc fix the -- AMT patch all of these things what are you willing to sign before the New Year's up.
Not what I'm looking for is a.
Comprehensive agreement that actually -- been calling for this all year that reduces spending which is the principal threat to our country.
But I am a Republican views may be empirical case the revenues -- -- -- -- tax reform and growth.
And I haven't seen that leadership from the president that's not a partisan statement is just the best assessment of the -- I see it and.
You might leading yet -- -- heavy realistic here -- you know that this spending cuts that need to happen and make a difference if they're not gonna happen today.
Well no and if you look at his statement about the debt -- some of my colleagues are saying well let's use the debt limit is the real lever.
The president's already make clear that he's not gonna negotiate around the debt limit.
So to me that the time is right now with respect to these cuts and rates that where we have what little leverage we have -- right now.
Thus by the let me let you weigh in on all of this people have said.
That economists suggest that concern about -- look at the starting gun damage.
The economy -- his COB is seriously at risk of falling back into recession negative growth in the new year -- higher taxes that.
In a way and death knell for the economy or is it just the whole picture the whole kit can be little he will -- -- increase taxes increase spending and no meaningful deficit.
Action right I mean we we see -- effect already see that in -- numbers on consumer confidence on the Christmas season spending and business investment and hiring.
You know at the higher taxes is not the end of the republic it's it's bad for growth but we can you know -- -- a strong economy that I think we do needed deal with the uncertainty.
Of -- taxes going forward and disclosed deal is it really is a short term deal I think we need the leadership that the congressman was talking about and and I wish you were there SI I agree with him on what we really need going forward.
Congressman -- one last comment from you is to confidence in Washington's you know Americans are basically fed up.
But this Wheeling dealing and Washington and no compromises -- anything you can say team sort of reinforce our confidence -- you.
Well and the institution.
Self.
This -- -- filled with members of congress to come from gerrymandered districts both Republicans and Democrats so in some -- is really no surprise that we are where we are.
And long term we've got to address this gerrymandered district situation.
When someone comes from -- when he heard deep.
They're not only not only are they not reward for finding common ground -- punished for it.
And I think that's evidence and why we're at this cliff here and a tough spot.
Congressman racial and Phillips went up from eight EI gentlemen thanks to you both and happy here.
