Why and five in israel, egypt helped negotiate a temporary truce which took effect at 9 00 at night in tel aviv. It was met with gunfire in the streets of gaza city. It is fragile. Israeli Defense Forces say there are five rockets launched from gaza since the ceasefire went into effect. And Prime MinisterBenjamin Netanyahus statement was cautious. He said he was willing to give the egyptian ceasefire a chance before there is a need to use greater force. Not exactly a ringing endorsement. Heres the key thing, while the United States got involved with a visit from Hillary Clinton this deal was not brokered by the usa. This is a critical moment for the region. Egypts new government is assuming the responsibility and leadership that has long made this country a corner stone of regional stability and peace. Seemingly unexpected leader was egypts mohamed morsi, a man weve seen at rallies where egyptians chanted we are hamas. Its an impressive feat and the first time that israel has ever negotiated with an islamist government. But there are some shady things about the deal. According to an israeli newspaper, neither side officially signed penned to paper on the ceasefire agreement which raise sometimes questions about it. And heres what we know is in the verbal deal. Israel has agreed to hold its fire and end attacks against top militants and this is important, promise to look at ways to ease its blockade of the gaza border. Hamas agreed not to strike any israeli targets and agreed there is no passage of weapons into gaza and to insure other palestinian groups in the gaza strip stop their attacks. If youre shaking your head that some of these things are very tall order, well, youre right. Later outfront we have the key players, israels foreign deputy minister and leerd of the plo to the United States. They will be our guests and answer those questions. But cnns ben wedeman is in gaza city tonight with the latest from there. Describe the situation. It was amazing to watch it today leading up to the ceasefire. Its not like it went off quietly in the night, was it . Reporter no, in the hour and a half between the time the announcement was made in cairo and the ceasefire went into effect, we saw increasing numbers of israeli air strikes, artillery barrages into gaza city itself. Some of them quite close to where im standing. And we saw three separate volley of rockets fired from gaza city toward israel. It did seem as if they were working against the clock to get just a few last whips in or hits in to the other side before the ceasefire went into effect. When it did go into effect, it became very calm, very quiet. Then we started to hear celebratory gunfire coming from a bit of the distance from here. But it came closer and closer and we saw more and more cars out on the street. More than weve seen now for the last eight days for quite some time. There were very few cars out. Definitely after dark, hardly any. But it went very quickly from pretty quiet to very noisy here in gaza city. Can you talk about celebratory, some people celebrating that its over and they could live their lives and they werent afraid. Others possibly celebrating they thought they scored some sort of a victory. What was the celebration more about . Well, it was partly victory. I was here at the end of operation cast led in 20082009. And when finally the guns stopped firing and the air strikes came to an end, people came out and they were shell shocked. They literally were shell shocked. More than 1,400 people were killed in gaza. And people were just Walking Around looking in utter amazement and shock at the amount of destruction that happened. This time around, gaza was spared an Israeli Ground incursion. The death toll was only about a tenth of what it was during the last operation four years ago. The feeling is they survived. They got some concessions out of israel. And now they can get on with their lives and tonight probably gets some sleep. Erin . All right, ben, thank you very much. Ben is talking about the reaction in gaza. The entire ceasefire was in jeopardy earlier today. During the final negotiations a bomb exploded on a bus in the heart of tel aviv. 24 people were injured. That is where sarah sidener is tonight. What is the reaction from the israeli people . Ben talking about what is happening in gaza. But what about in israel . Reporter there was a lot of concern and frustration and worry and real fear off that bus exploded around noon. It happened very close to the military headquarters as well. Were talking about injuring nearly two dozen people, five of whom are in the hospital. Police very close to making arrests on that. But the reaction after that in that same area as you might imagine, you have two different reactions, one, some people are saying, look, we think that Prime Minister of israel should finish off the job. That they should go in and take care of this so that this doesnt ever have to happen again where theyre seeing rockets come over or bomb blasts in a city like tel aviv or any city in israel. But then you had other people who are very concerned about the ground war. Did not want to see a ground war happen. Didnt think there should be some sort of permanent solution by any means necessary. But ultimately every Single Person that we had a chat with and who came up to us and wanted to talk about it wanted a permanent solution to this problem, to this crisis, to this fight, if you will. Between gaza and israel. And including all of the militant groups inside of gaza not just hamas itself. It will take all of them to stop the rocket fire from coming over and the Subsequent Air strikes that israel does after it is hit. All right, sarah, thank you very much. A permanent solution so hard to envision how that could happen. Tens of thousands of israelis were called for duty for that possible ground war. Fred planken has been with the israeli forces. Are they moving back from the border . Reporter erin, the troops are still at the border. Were not seeing the troops move away just yet. Certainly we believe theyre going to stay there for at least another four or five days because, of course, one of the things that the israelis are doing, especially in the next couple of hours, is theyre going to be monitoring whether or not the ceasefire is actually being kept by hamas as well. What weve seen so far is there is smaller violations. One or two rockets have been fired out of gaza. The israelis say by and large the ceasefire is still holding. If you talk to people here, a lot of them are skeptical whether or not the ceasefire will hold. A lot of them say they heard talks like this before. They think that hamas is actually still in place and, therefore, they fear that a couple months down the line or a couple of years down the line they might have rockets raining down on their heads as they have had the past couple of days. By and large, however, folks that were talking to here on the streets say that at least for now theyre quite happy that the violence has ended or seems to have ended and they hope that it might last for longer than the past couple of times which brought us, of course, to the situation before the on going military operation that was going on here when we saw the violence. They hope this time it will last. However, most of them are skeptical. Erin . Try running four. Ning a restaurant is hard, fortunately weve got ink. 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Theyll get straightforward guidance and be able to focus on other things, like each other, which isnt rocket science. Its just common sense. From td ameritrade. Our second story out front, boehner put obama care on the table. He is arguing that if the United States is serious about getting our fiscal house in order, the president S Health Care law has got to go. He wrote, we cant afford it and we cant afford to leave it intact. Thats why ive been clear that the law has to stay on the table. Obviously referring to the negotiating table. Yes, even though the president won reelection over contender who said he would repeal obama care on day one, baner is boehner is like a dog with this bone. Out front tonight, writer for the national review, political analyst role land martin and david frum, former adviser to george w. Bush. You think the election is over. There are a lot of things can you argue about. A lot of victories can you score. But getting rid of obama care is something that was tabled in the election. I think thats fair. There are two pieces to this debate. One thing that is a huge contradiction and problem for republicans is this. The thing that they campaigned on, getting rid of the medicare savings in the obama care law, thats something that would actually make the deficit picture look a lot worse over the next ten years. Thats obviously, you know, that cuts against this narrative. On the other hand, there are a lot of things about the obama care law that are going to be fiscal problems. For example, the law treats people who are on the exchanges really differently from it treats people who get insurance through the employers. So there are a lot of those things that probably should be fixed but arent going to yield big savings in the short term. As a matter of deficit negotiations, i think boehner is not on strong footing. Interesting. There are a lot of problems with obama care. I think obama would be the first person to acknowledge that. He didnt get a lot of things he wanted in there. But david frum, what is john boehner doing . What is he possibly trying to gain from this . Okay, im going with your crazy luke a fox option. Good. John baner is about to have to bring the more conservative part of his caucus, some very bad news. Republicans dont have a wlost leverage. Tax cuts expire whether without anybody doing anything. And republicans are going to end up yielding a lot more than they give than they get in the negotiations. And john boehner, as the chief negotiator is the man identified with that surrender. So he needs to put down a marker now that says to the right wheel of the caucus, hey, im with you. If it were up to me, 100 . Im with you. And i am going to put it in writing. Im completely in favor of doing all the things that would have happened if we won the election. However, we didnt win the election. And we have facing this fiscal cliff and its scary. So im about to have to do things you dont like. But be assured that my heart is in the right place. Rolan what about this . They voted for obama. But when you look at how many people cnn poll last week, 51 of this country oppose the health care bill. 42 favor it. Maybe boehner is on to something. No, hes not. Because frankly we got to go look at those numbers. Remember, there are significant number of people in this country who felt that the bill should have gone further. There are people again, simply not oppose and favor. You look at the number of the polls done, a lot of people said they want a single pair option. Yeah, i dont favor this one. I want canada. I favor universal health care. Let me be clear. Let me channel the Obama Administration for a second. This is how theyre responding to the proposal. Next it aint going to happen. He can sit here and sing all day saying put it on the table. Trust me, its not going to be on the table. So its cute. Its an oped, its great. But trust me, even he knows, the president is not going to put the Affordable Care act on the table and so its not crazy like a fox. Its simply crazy. Okay. What about the possibility though, i think this is a reality. To get a grand bargain that works, and im not a crazy person. I dont think were getting one. So you claim. So i claim. My own self evaluation. But in order to actually get that done, we do have to make changes to health care. And i believe the president agrees with that. But we do. Yeah. I think thats absolutely right. Actually one of the tricky questions is going to be how the president is going to introduce some of these ideas about cost control that werent part of that original debate. There is a lot of talk about administrative price controls, all pay rent setting, terms we havent heard bandied about that will be talked about in the years to come. There is another big thing, setting up the exchanges is really tough complicated stuff thats got to take a lot longer than people think. So this is going to be theres going to be a lot of issues that republicans are going to be able to pick and poke at and democrats have to think hard about. David frum, can john boehner get the guys and gals to come along . Sure. In fact, i think somethings going to happen. Its not a grand bargain. The whole fiscal cliff problem is completely artificial. Is it utterly unnecessary selfinflicted trap that was in response to a dilemma the republicans kreecreated for themselves in the summer of 2011. I think what well end up having to do is just get rid of the sequester. Theres to reason for that. Its gone. Goodbye. And the second thing that we then do is have a we extend the present tax rates for another six months. And then argue taxing and spedding without an artificial gun to our head. There are enough scary things out there in the world that the United States congress does not need to invent some additional ones totally unnecessarily. All right. Thanks to all three of you. Quick final word, yeah . Real simple. Both sides are going to have some significant pain in this. You have to deal with the defense. You have to deal with medicare. You have to deal with entitlements. Nobodys going to get off easy. But if republicans think can you balance it on the backs of the elderly and poor, trust me, thats where the fight is going to be. Share the pain if you want to have the gain of being able to deal with the deficit. Thanks to all three of you. Appreciate it. Our third story outfront. Tax the rich . No, tax the wealthy. Wealth is something you build over time. Shows itself in the forms of superexpensive assets. Mansions, boats, expensive wine. 41 days from the fiscal cliff and bitter partisan deadlock, we want to test drive another idea, where the wealthy would pay more, but tax rates on people who work might not go up. Is this the buff rhett rule really should have been . We have david altman, and daniel, great to see you. What is amazing to me, reading your proposal here, that would tax the wealthy as opposed to the rich, its against the constitution right now to tax wealth in this country. Thats right. Cant have a direct tax like that. We needed a constitutional amendment to get the income tax back, so we need another amendment. Its 100 years later, lets update for the 21st century. I want to change the voting day. Im all for it. Lets break down your math. If we taxed wealth, where people accumulate over time. 2010, 58 trillion dollars. If you put 1. 5 tax, 870 billion. Thats a lot of money. More than we got on income tax this year. And it will disproportionately affect the wealthy. It seems close to a silver bullet. You can increase the estate and gift tax with a wealth tax of 1. 5 . It should be graduated and progressive. The most important issue is to deal with wealth inequality. Which is much more severe. Getting worse, getting worse for the last 20 years, and the only countries in the world that have more than 10 Million People, close to how bad it is, in this country are all in africa and latin america. Were not necessarily talking about someone who works really hard, an entrepreneur that works hard, you are talking about the people initially teresa heinz kerry, warren buffett, thats who will be hit the hardest . Absolutely. The proposal had an exemption of proposals with up to 500,000 in wealth. That exempts most households right there. How did you draw that line . Even on the bentley, people will say it has dents and its not worst much. How do you have that . We have a lot of cheating with income tax and with a wealth tax, im sure people would try to cheat on that as well. We might have to have high slightly higher rates. But fighting wealth in equality is so important, bought thats what affect your opportunity and our wealth inequality is hurting were Living Standard in the long run. 500,000, why did you pick that . Anything under that, you wont get taxed, above it, you are. It already exempts about 80 american households. If you want to make a debt in inequality, you have to have a progressive tax system, and this is a way to do it. Let us know what you think. Trying to be proactive here and help solve the problem. Help those guys in washington now. Israel why and gaza are claiming the ceasefire as a victory. The senior guys are outfront next. And host he is gets an answer. We start the second half of our show with stories we care about where we focus on our reporting from the front lines. 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