little bit with reagan, but not enough, and then, of course, when you reduce the taxes, you need to be reducing that spending, so the blame, there s there is plenty of blame to go around. i am really concerned that come january 1 you re going to see the taxes go up on people. you are going to see the obama care taxes come on to the books, and it s going to be kind of that taxmageddon, if you will, if we do not reach a resolution to these issues. as you ve seen, you have to have some spending cuts and entitlement reforms to make this work. you told the new york times you would not support speaker boehner s plan b because your constituents didn t favor it. please take a listen to what senator lindsey graham said this morning on meet the press. the president is going to get tax rate hikes to. my republican colleagues, if we
quoted saying, we could see next week a market rally come back from this. this might be temporary. sure. politics does play a role but earnings is always the most important thing when it comes to the stock market. the real question i think investors are asking and consumers and businesses, what s going to happen now with this budget situation, the fiscal cliff, the taxmageddon ? all these things are completely up in the air right now. jenna: when we talk about the fiscal cliff, we use it like everybody knows it. fiscal cliff, there it is. the fiscal cliff is these automatic tax hikes and automatic spending cuts. that s right. spending cuts. jenna: all the money comes out of the economy with spending cuts. you would have a certain group of economy hurt by higher taxes. some suggestion that combination could cause recession. let s go through this. you re right it is a little complicated. first you have got the tax increases. president obama won the election. look i told people i w
evocative term taxmageddon. we re having the election debate about what do we do instead of these things? that s what you re seeing play out in the presidential campaign and house and senate races. democrats want to replace these increases by taxing rich people. republicans want to replace these increases by doing tax reform. in terms of this congress, okay, maybe the next month or so they ll be out doing re-election campaigns and all that, but this is the congress that s going to have to deal with this before january 2nd. that s right. that s right. but until they know who is in the white house, who has the leverage, the political leverage, who is in control of the senate, is the house majority republican majority is it still republican, is it larger, is it smaller, until we know sort of what the voters how it shakes out with the voters, we can t really move forward. do you get a sense, lori, that had the democrats also controlled the house we would have gotten this settled?
accept substantially less in government benefits and services or both. reporter: if a lame-duck congress and the president are unable to resolve the expiration of the bush era tax cuts after the november elections, what some are calling taxmageddon , elmendorf says the nation will be thrown into another recession. jon? jon: sobering numbers there. doug, thank you. arthel: we have a fox news weather alert. the national weather service issued a new alert on tropical storm isaac which is gaining strength in the caribbean right now. a hurricane warning is in effect for parts. dominican republic and haiti. of course all eyes are on tampa which is preparing for 50,000 people to arrive for the republican convention there. now for the possibility of isaac hitting the city at hurricane strength. steve triggs the is communications manager for orange county and joins me live on the phone. steve, first of all even if it doesn t hit hurricane
dana: it is going to be debate. a battleground poll, i saw it a couple days ago when we talk about medicare for a long time. if you look at the 2012 key issues economy at the top 22%. government and spending and the deficit at 17%. the reason it matters if you are a thoughtful voter and you are thinking back do we want another four years of this or should we change course and go with nobody else? a short-term decision on the stimulus bill by and large where you can argue it, but by and large people think was a failure. short-term decision that didn t work. that s how you get solyndra. the second thing was obamacare. a lot of people feel like because of the uncertainty with obamacare, dodd-frank rules and the election, everybody is just sitting back waiting to see what is going to happen. plus you got financial situation. everybody s taxes about to go up on january 1. brian: taxmageddon. dana: that is what they will focus on in november. kimberly: it s significant. what matters