Page 21 - Spending Side News Today

Great to have both of you with us. michael, you first. going forward, the line in the sand is set. how is president obama going to keep the budget cut negotiations separate from any kind of debt ceiling vote? your thoughts. >> thats a very good question, ed. and i think thats one of the challenges the president is actually going to face. so i appreciate his comment when he said i will no longer negotiate with this congress. he is right. this congress is over. a new congress comes in tomorrow, au...

The president surrendered his incentive to compromise. leverage i take you mean coming i think thats a true explanation as far as it goes. out of the campaign and the opposition here faced by the gop, the prospect better stated was that everybodys taxes could go up. okay. so the president has played his hand. who do you think now has the leverage going forward? >> look, i really do think republicans -- i dont know if they have the leverage, but theyre on higher ground now than they were three da...

Gop, the prospect better stated was that everybodys taxes could go up. okay. so the president has played his hand. who do you think now has the leverage going forward? >> look, i really do think republicans -- i dont know if they have the leverage, but theyre on higher ground now than they were three days ago. because they will be able to say with great credibility over the next year and obviously this budget debate is just starting, not ending. that the president got his pound of flesh out of r...

Sand is set. how is president obama going to keep the budget cut negotiations separate from any kind of debt ceiling vote? your thoughts. >> thats a very good question, ed. and i think thats one of the challenges the president is actually going to face. so i appreciate his comment when he saidly no longer negotiate with this congress. he is right. this congress is over. a new congress comes in tomorrow, augmented, mind you, with ten new, you know, a majority of 10 in the senate for democrats, an...

Lot of republicans and conservatives around the country is how do we now move forward from this particular situation? youve seen the splittage, as you led into this segment with the split in the house among the republican leadership, not just the rank and file. the grassroots as ive noticed today on the blogs and on twitter were fired up on this. this is mcconnells tax increase. so youve got this fracture right now. and the leadership has got to pull itself together with a cogent coherent messag...

Constituents and they just want to be loved. jon: i misstated it last hour when i said that it raises spending, it actually raises revenues, taxes go up by $620 billion. what did they do on the spending side? >> they did virtually nothing. well to be fair they cut spending in the -- i cant remember the exact number. jon: 12 billion i think is the number. >> yeah thin they turned right around and added some 300 billion in new spending that completely offsets the minor, the modest cuts that they m...

Show leadership, thats different. he said, here is some ideas. here is things im willing to do and it wasnt just democrats who were running away from those ideas. again, let me emphasize, im concerned also as a democrat that we just took 90% of the bush tax cuts off the table. im concerned on revenue side being a democrat as much as i am on the long-term spending side. >> steve: for the cbo says that in the first year for every dollar cut, there will be $41 worth of tax increases. that number is...

Congress has to look at the spending side. the bill does nothing for spendi spendispend. that matters to americans because it effects every sij american by having a higher interest rate. its very important. both sides were together cooperating and finding a way to cut spending. thank you soichl. so much. >> thank you. happy new year. >> 48 after the hour with the new year come a slew of new laws including some that could surprise you such as a ban on letting pigs run wild. some lawmakers quenc...

The bill deal tonight, they reached the deal to avert the so-called sequester, the spending cuts to begin in the first of the year. they reached that deal for two months. and what is important about that deal, it relies on tax increases and spending cuts. the tax increase is a little bit complicated and dodgy, regarding the roth ira accounts. it puts together the principle that after the deal further changes, needs to be half on the tax side and half on the spending side. what that holds open to...

Tax rates? >> thats right. ever since 2001 when we first passed this it was temporary. thats why we are having the cuts now and having it today. it is hard to grow and invest when you dont know what the income tax rate is going to be. you dont know what the debt tax is going to be. this is one positive thing on the bill the spending side is a different story. its a step in the right direction on tax polil but in terms of spending it gets us nowhere in the right direction. which hit our debt ceil...