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Just 44 days away what from what could be.
The largest tax hike ever unless something.
Is done about it -- a compromise is reached and white house press secretary Robert Gibbs saying today that he thinks the debate will be settled.
Before the end of the year.
And our next guest thinks he has a plan but it doesn't include extending cuts for the so called wealthy.
Joining us now from Capitol Hill is senator Mark Warner a Democrat from -- candidate senator our pleasure to see you.
What is your idea for a compromise and are you sticking with it you have any other Democrats are getting on.
-- -- -- -- A lot of first of all let me explain the idea before we jump to conclusions.
You know one it recognizes.
That 98% of all tax cuts ought to be maintained.
And it also recognizes that both sides have got.
Partially right position Democrats are right that adding 700 billion dollars of that deficit.
Makes no sense Republicans are right -- taking money out of the economy right now while we're still coming out of this recession also makes no sense.
So the question becomes you know.
If we just do a two year extension there's two problems that.
One is these two year extensions have a tendency of becoming.
Holes in the deficit over the long term -- -- punt when they hand.
And every independent analysis -- said it simply getting the top 2% this tax -- may not be the best bang for the buck.
Some ideas how can we get this tax break in place to generate the most job creation and economic growth.
You know what I think has been under reported from all the news channels is at large American business are actually financially healthier today than -- was before the recession.
North of two trillion dollars in cash on the balance sheets so my idea is to take the revenue that would be gained from -- in effect running the top 2% expire and dollar for dollar -- revenue neutral make that targeted business tax cuts to get part of that two million dollars.
Off the sidelines.
Back invested in the economy.
And I've gotten very favorable response from a number of business leaders I've got a lot of interest from up.
A number harm my democratic colleagues as we're gonna continue to discuss this I actually think this is a very.
Pro business idea and my hope is this -- my Republican guard colleagues that.
Might find this is a good idea as well -- best ideas from both -- right now.
Right now said at a much of discussion as you know on Capitol Hill seems to be centered on just the bush tax cuts for the upper income and whether or not to extend those for a year.
Or two years or even three years whatever the case may be right now your plan -- as you said would not do that it would use that money instead for targeted business tax cuts but if it comes down to it.
Would you vote in favor of a short term extension.
If that's what -- representative.
Why would I go ahead and give up all negotiating leverage.
Before we get into the discussion.
You know I think we got -- recognize that both sides -- got a good point.
If we're gonna do more than make campaign rhetoric about deficit reduction we've got to start taking a step in that direction.
We've also got to recognize that right now is not the time to take money out of the economy.
-- gonna give tax cuts where can we get the best bang for the buck.
And -- yet not yet met a business leader who says if they can make more money in the business on the top line.
They don't mind going back to the personal rates they paid under President Clinton and under President Bush 41.
When the actually the economy -- both those presidents did pretty well.
Senator why didn't because now there's a real sense of urgency frank -- the withholding tables should be going out right now to business says.
And we're looking at -- end the year deadline why didn't do admit this is a compromise but why didn't you.
And lawmakers get on the stick -- dealing with this.
Are a lot of people we elect I -- earlier in the year I was.
Offering these ideas floating -- these ideas beforehand I think it was inexcusable that both political parties were playing political chicken.
With basically the economic future of America and the tax rates for a lot of Americans we should have given certainty at least on the 98% were both sides agree.
Did those 98% of Americans can go -- realizing that taxes are not gonna change at all.
It candidly it was it was an embarrassment and I urged both political leaders -- -- both senator McConnell and senator Reid to kind of reach that compromise before we broke.
Both sides wanted to use instead of political -- one upmanship during the -- during the campaign.
Let me quickly ask -- senator before -- let you go one question that we're asking our viewers today.
And it because it has to do with it is presented by Alice Rivlin and -- -- to Medici.
Wanted to narrow the deficit of implementing a sales tax -- six net percent sales tax and then lowering income -- try to offset that what do you think of that idea.
That's I think the more ideas that are out there the better.
Because either political party -- the Democrats say we can do this all by simply raising revenues.
There won't get the Republicans say we can do this.
All by simply cutting spending that long it's gonna take.
Both sides of the -- like that -- -- is still affects them but I think what we -- to do is get all these ideas out there and then you start seeing the intensity of this problem.
I frankly likes more of the ideas that came out from.
Alan Simpson -- -- On that the presidential commission if I think that laid out a more comprehensive approach senator thank you so much for being here senator Mark Warner a Democrat from there.
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