Billion in new revenue, new taxes. If you do that by closing loopholes or other ways around. Now, to come to numbers like that, you think it would be more difficult to pull the democrats or more difficult to pull the republicans . A lot of those cuts could be doing things like cutting tax breaks for businesses, and other special interests that are out there. And that is something that i believe plenty of people in the tea party and others might sign on to. I think it would be more difficult to get republicans to come on to that bargain because they have a bright line on taxes. Democrats, as i mentioned a but if youre talking about cutting loopholes and cutting tax breaks that certain people are getting, we have Grover Norquist joining us today. He might not say that what is raising taxes. I expect he would say that is raising taxes. Look, the president said in our interview two weeks ago that tax rates are a thing of the past. Raising tax rates are a thing of the past. That what he wants to do is close loopholes. But the question is what loopholes . Sure. And identifying loopholes is difficult. But republicans have drawn a line against net increases in revenue. Right . So i would expect Grover Norquist would say anything other than dynamic scoring, you know, counting for growth, that any net revenue increase would be off the table. Now, on the democratic side, they dont want to cut medicare and Social Security, and many of the parties were resistant. But the president sets the tone. He would get what he wants from democrats. He gets in his budget change in cpi. He would go some distance there. But i think the challenge is getting past the bright line for republicans and then pulling the democrats along. Erskine bowles, by the way, does favor a lot more tax increases than weve seen so far and thats the point that hes making. Joe. Harwood, so you were right about this. We did get a deal. I always thought there would be a deal. Andrew, i guess, is going to be in cincinnati at a bengals game. Im going to cincinnati. Remind us, andrew, of the terms of that bet because were going to make it happen. So the terms of the bet was i would go to cincinnati to a game with you because i lost. I did not believe that this morning we would have a deal. You wrote that column and and i was wrong, joe. I know you like you would remind me. I was wrong. You were exactly right on i should be your agent. But its true, some men like to watch the world burn and you were hoping everything would hit the fan. But do you remember one thing you said that was very smart, andrew . That was, well, if we really are going to get a deal and the markets know waer going to get a deal, what if the market doesnt sell off and no one gets a chance to get in . Now, look what happens. Weve been up five out of the last six days. Here we are, the deal gets done and were headed down. Bee because were already up to 15. 6 or whatever it was. We never really got a chance to get in and say were going over the cliff. So i commend you. Andrew, pack your mittens for cincinnati because its going to be cold. A late game . Were going to pick a weekend. I wanted it to be minnesota in january. Pick a weekend. Well bring cameras. Im going to have to see that to believe it. By the way, andrew, cincinnati is the perfect city. I can see andrew with giant earmuffs or something. The most conservative city probably in the near midwest and were youre going chafe there. Youre going to get a rash there or something, seriously. You will feel it when you land. It will be good. And tell andrew that the sushi in cincinnati is not quite the same as hes used to in manhattan. You know, they have chili, not sushi. I just have one semi substantive question this morning, which is on the republican side in terms of the dynamic between the different factions in the party, who feels emboldened . Who feels that they lost and how does that play out over the next couple of weeks . Well, clearly, the tea party lost and they lost both to the extent that theyre able to realistically assess what happened, youve been saying statements from republicans. Orren hatch, for example, a long time member of the senate put out a statement yesterday saying a lot of people were sold a bill of goods that something that was impossible to happen was possible and we dont want to let that happen again. We have to be realistic about what they do. Mean what they could have accomplished. Correct. The pocatello of the shutdown strategy. So they got nothing about what they wanted. Right. And that means obama care, theyve anchored so many people in the party who are feeling the effects of the declining poll numbers for republicans, but its still not 100 clear, andrew, whether or not the more mainstream members of the party are going to be able to prevent that faction from steering the rudder of this House Republican caucus. Its sort of up to john boehner, but not really because this is a john, we want a important caucus which doesnt move in one direction. We want these guys to win the u. S. Back. And my question is, are these the people that will win back our trust or youve seen polls that they just dont want to throw up hundreds. They want the entire come tegsz of the congress changed. Some of them senate and house. Are we wasting our time with this group of people or is it going to take an election . That sdendz on what you mean by this group. If everybody had the approach of john boehner, we would not be in this mess. Its that theres a whole lot of people who were elected way after john boehner came to congress who have a much more radical view of their role and what ought to happen to government. Were they weakened in their sdrikzs . This hurt the republican overall. Were they weakened . It is possible that some of them were weak bed, but not likely. Most of those people come from districts that are so lopsided that theyre insulated. Which means its not going to changed. Thats right. Unless the rest of the caucus remember, theres about 107 republicans. 87 republicans voted for it. Theres about 180 republicans in that caucus who dont want those people to be driving the train. We shouldnt do that again. If those people rise up, it could be different. Well, the problem is that they would then have to have a coalition with nancy pelosi. Would they feel would nancy pelosi allow that or would she take the numbers and say theyre fought going to be cutting deals with them . Finding the middle is not just about finding compromise. Its finding compromise between boehner and pelosi. If john boehner was willing to say to those 50 tea party members, youre not calling the tune any more, im going to make deals with nancy pelosi and steny hoyer, with Mitch Mcconnell and harry reid, a lot of stuff could get done. The president was fiddling for a while. I know that strategy paid off at this point. Were asking everyone to rise above here. Theres been transit in from the left in terms of all the stuff that were trying to do. The president would have trouble doing any of this stuff. Three hours and just listen, weve got to get rid of every republican to make sure we get anywhere. Joe. Joe. I know thats where youre going, harwood. No, no. I didnt say that. Ill make you a bet. You have to go see the who is the worst team in the league . Im going to make you go to one of those games. The redskins, maybe. The giants. No. Im getting you season tickets to the giants. You heard me say that if everybody in the congress had the toout attitude of john boehner, we wouldnt be in this mess. I did. And on the cola thing, look, its in the president s budgets. Hes going to be for that. But entitlement reform may take more than just cola. Look, i think that a real genuine attack on the entitlement problem may require Something Like paul ryan proposed, the premium support, where the sut the vouchers, that sort of thing. Anybody who is close to retirement age now, you have to be looking further down the road so people can prepare for the environment and know what to expect. How did we get late . Were not even together and were so late. Because we talk for a living. Im amazed you got to the camera in the time for the top of the show. It wasnt his fault. He got dropped off miles away. I was 15 blocks away and i was in the darkest corner and i could hear crickets and the guy would look over at me and id be like, hi. And i wasnt moving. It was not good. Is that what we discovered that you actually run a four 340 . I was like at a southeast place and i was supposed to be at a northwest place and the capital was between me. You know what i mean . I was on the house side and now im in the senate. That takes a while to walk that maze. Im here. Giovanni bernard. I got this here and im feeling good. Ive got this right here, so here i am. Were here, were ready to go. I can lean back. Lets take a look at some of the markets this morning. We showed you the futures board a moment ago. After the euphoria on wall street, you are seeing the give back this morning. Down by about 105 points. Probably not surprising, given the big build up as it looked like a deal was going to come together yesterday. Right now, wti down by about 55 cents. 101. 74 a barrel. And the tenyear note is yielding 2. 631 . Yields in the longer term notes never really crept up, never got to any of those positions. But it was the shortterm where you saw a lot of activity and that should be at least calmed by all of this news today, as well. The dollar this morning, the yen is at 98. 03. The euro is at 1. 3625. And gold prices right now are up by 25. Wow. Might not have expected that. When we come back this morning, we will talk about that bill. Believe it or not, there was some quirk spending that crept its way into last nights shortterm budget deal. Kind of unbelievable. Well tell you what was in that beside tess deal to avert that debt default. Were watching shares of United Health. The company earning 1. 53 a share from Third Quarter, matching analyst expectations. But its full year forecast fell short of consensus. Squawk box will be right back. This is our daily segment focused on giving Business Leaders a fund up. The deet ceiling limit raising isnt without a quirk. There is a 2. 2 billion deal for a dam project on the ohio river. 450 million for rebuilding projects in floodhit areas of colorado. A death benefit for the family of late senator frank lawsuitenberg. Agencies that fight wildfires could get as much as 636 million. The mine Safety Department gets an increase in the fees it can keep. And a Watchdog Group put the goal of protecting americans priestsy 3. 1 is million. Senator john mccain takes on the spending for the dam projects. These people are like alcoholics. They cant resist taking a drink. Its ridiculous. Its absolutely ridiculous. It shows that there are people in this body who are willing to use any occasion to get an outrageous pork barrel product done at the costs of millions and millions of dollars. Its differesgusting. Any discussion, guys . I read through it and immediately fingers were pointing at mcconnell. Senator feinstein said this was something that was in the works or something and they all wanted it. It doesnt happen by magic, though. I know. I dont know what but they pointed to somebody else instead of mcconnell who wanted it in. Well have mccain on and well give him what their answer was to how it happened. Hell tell us whether its bs or not. Whether you agree with any of these spending issues or not, why would they tack all these issues on. We literally were saying this would be the collapse of the financial system. Why wouldnt you do a clean you know, the call for weeks now has been why wont you pass a clean resolution . This wasnt a clean resolution if you tack on pork barrel spending. But whats pork barrel spending . We dont want flood damage repaired, we dont want but why not athak separately . We spent months talking about the overreach of the nsa. But why does it get tacked on though this . Because its a must pass bill. Here is my point about why this is a waste of time. That is if you really care about the longterm deficit and debt problem of the country, you dont talk about this nickel and dime stuff. What you talk about are those big entitlement programs, farm programs, thats where the money is. One of the biggest problems that we have in politics is that many people out in the country hear reports like this and believe that the problem is actually these dinky programs and understood it is not the real problem, but you have to start somewhere. The optics of this, i agree with mccain that you have to stop with medicare and infrastructure. Its investment, its infrastructure, this is whhavin to do with jobs. Stuff like colorado i think would get passed, anyway. I know with new jersey it was held up for a long time with the new Jersey New York connecticut area. Like that sandy relief. But i think you can have a clean vote on it saying here is what i support and what is what i dont. For people using this stuff, this is how you get into the deep politics to say you supported this, you didnt support this because you cram all this stuff into one bill. The fish have to squirm, birds have to fly. They cant help themselves. Wee cant help ourselves. Were part of the problem. Finding nemo, thats where that came from. I cant believe youre such an enabler, harwood. As a republican, you could easily ba sh them. Andrew, if you care about the problem, focus on the real thing. I went to a town hall meeting with a member of congress in august and he was talking about longterm budget problems. And a guy stood up, retired guy, and said ive heard a lot of is the stuff about change cpi and Social Security. That would really hurt a lot of people in this district on Social Security. Why dont you put a change on the spending instead . Well, guess what . Change cpi is putting a change on the spending. John, i agree with your larger point, but i dont see any problem with going after both. You can fix the small things and the big things. I agree with the larger point that it is not the bigger problem i completely agree with that, thats not where the money is. However, i dont think it means that you dont have to look at the fraud and waste and pork barrel issues. Were not going to have time to get to mark cuban. Andrew was wrong about this, too, harwood. I told him that cuban did nothing wrong with this mama. Com stuff. How are you going to pay off this debt . That was the third story. Lets jump to that story. Lets tell everybody who hadnt read the papers yet, mark cuban, he was found not guilty of Insider Trading in dallas yesterday. He lashed out at the cases lead prosecutor saying that the government tried to bully him. Joe, youve been following this slowsly isnt it happened. And i dont remember all the details, but i told andrew he did absolutely nothing. Andrew is like this ambulance chases. No, no, no. You come from a legal family. Everybody is culpable for something with you. Youve got your magnetic business cards andrew just not let me make one thing clear. Andrew does not get mavericks tickets for this because he might actually enjoy that. Thank you. Mark cuban, good on mark cuban for fighting and standing up to what ultimately turned out to be bogus charges. I also tell you i had not in truth read enough about the case to fully understand it. What i thought was shocking was that the governments main witness refused to show up in court and would only show up by video. I said that yesterday. He was coming from canada. He wouldnt come into the country. That sa difficult case to prove because was he even under oath . I read in one account that he wasnt under oath. In this case, shame on the government. Shame on the s. E. C. Make sure you get a speeding ticket, go to the court because the cops a lot of times dont show up. Which means you werent speeding, right, joe . A friend of mine got off that way. Bhab what andrew gets from this outcome is he has to hang around for mark cuban a long time. We like mark. Hes a good guest coming in. Hell of a dancer. The u. S. Equity futures this morning have been weaker. But, again, this comes after Massive Gains yesterday when it looks like a deal was close to getting done. Right now, dow futures down by 87 points below fair value. When kwoem back, well talk about the market invocations of last nights last minute budget deal. Plus, how washington can win back the confidence of the American Public. We will ask congressman jim himes and mo brooks. Senator ron johnson will be joining us, too. Squawk box will be coming right back. The American Dream is of a better future, a confident retirement. Those dreams, theres just no way were going to let them die. Like they helped millions of others. By listening. Planning. Working one on one. Thats what Ameriprise Financial does. Thats what they can do with you. Thats how ameriprise puts more within reach. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Welcome back to squawk box. Over the last few weeks, Corporate America and the Financial Markets have been almost solely focused on the situation here in washington. Ceos and investors have been hanging on every word coming out of the capital wral. As our viewers know, cnbc has been leading the charge to rise above. A call to all politicians to put aside part is anship and do whats best for the nation. Now, washington has kicked the can down the road for a couple of months. This is a temporary reprieve. Washingtons reputation has been shredded. Approval ratings are at historic lows. It is time to come together and do something meaningful. We hear at cnbc are calling for a brand bargain. This morning, we are announcing a new call to washington. Its called win us back. This is wig back business, win back america. We promised to do our best to move past the talking points and get real answers from the nations leaders. Joining us now, Marie Cavanaugh and mark. We knew we had put things in jeopardy with all the back and forth maneuverings over the last few weeks. Where does the s p stand in items of the rating . Developments have been in line with expectations for the debt ceiling to be raised before that new financing has, in fact, happened. The readings are on the stable outlook. In our opinion, the aa plus rating is lower than the aaa that we had until 2011. Predominantly becau