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Further Austerity Needed in a Fiscal Cliff Deal?

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    Rep. John Garamendi, (D-Calif.), on efforts to reach a fiscal cliff deal.

  • Duration 3:35
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Most of the decider our elected officials are in DC on this New Year's Eve with the heat -- of the media and constituents on them right now.

What will they do we're joined right now I promise you we kept Greg yeah.

People as they walked by the hallway representative John Garamendi a Democrat.

From California.

Thank you so much for joining us represented if we -- appreciate it.

We have less than nine hours ago -- hours fifteen minutes or so tell me what do you think is going to happen.

Well let's be hopeful that's been hopeful that we get a good balance deal as she was saying those CEOs are looking for -- -- so my.

And I think there's going to be had we have to pick a number where we have adequate revenues coming in somewhere -- 250000.

-- -- Okay there's a number out there and then on the -- I do keep in mind that in the budget control act of this year.

We've already well over a trillion probably -- 1000000000003 to 400.

Billion dollars of cuts already.

To take place the sequestration is is it is in addition to that so they're serious cuts that are coming down.

They have to be done wisely and that's why sequestration is a problem because it is not a wise way to make cuts.

-- representative -- and I know you well because I'm from California watched your career very closely you and I both went to Berkeley not the same time it.

You also went to Harvard Business School.

You understand business.

We cannot.

Its outsized the government to what those tax revenues are that come men.

Must we not at some point.

Make everybody feel what not talking specifically about the spending cuts part of this if it's going to hurt but don't we need our own form of austerity we yell at the Europeans saying why aren't they doing it and yet all we wanna do.

Is tax the wealthy more OK the -- are telling us will take a little bit there.

But they're not coming in with meaning -- spending cut.

It's.

Well there's two different kinds of cuts that we need to keep in mind one is the overall deficit which is going to take.

Half a decade to a decade to resolve that we get the whole thing back in proper order.

You cannot do it in one or two years you have to be really careful with austerity and one of the big -- it was being talked about.

Over these last several months is the austerity.

That could have been or might be created by the fiscal clip that is taking money out of the pockets of -- taxpayers.

And also making serious budget cuts at this time look at simultaneously.

The result is serious austerity and by every economist would throw the economy back into a recession so it's a matter of timing.

How do we timed it cuts over what period of time and then what -- the cuts going to be.

We need to keep in mind that every business -- that's what I've learned at Harvard and beyond -- been a businessman those many years since I graduated from there.

You have to make investments you've got to make the proper investments okay continually have to -- that I think would be a good shape.

I get that -- we have just a few seconds left but as you're Rolling -- that you can't always get what you want if you -- Have to give -- one thing which you go to 450000.

Taxes above that people who have that income would you say located that.

If that's part of the deal the answer -- yes I -- that's where the compromise comes -- pick a number keep in mind you need to have the necessary revenues.

450 get pretty close to the as we won't have the revenues necessary but they're all the other tax issue some of which you talked about in the previous segments.

Representative John Garamendi Democrat of California we thank you very much for getting in front of our cameras here Fox Business.

And a happy new we're watching it very.

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