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Nancy pelosi as she takes the helm for the second time. she's the only woman to do it the first time and now twice. >> a record that ought to hold for a long time at the current pace. there's a real positive air about the capitol tonight. a lot of optimism for members of this new congress and folks returning in both parties. but nancy pelosi takes the speaker's gavel fittingly for a legislator of her talent in a complex time. she'll have to along one of her first acts as the new speaker pass a rules package that some members of her liberal flank oppose because it doesn't -- it includes pay go ...

Afford another extension of unemployment benefits without making sure we don't add to the debt. democrats say -- joining us liz mcdonald, looking into all of this. welcome. >> delighted to be here. >> martha: good to have you. the argument seems to come down to how this is going to be paid for. republicans are saying you have to find a way to pay for it. we have to cut something out of budget. president obama says lay this money out and help these people. >> this is the central political hot button issue for the midterm elections. speaks to the democrats and the job creation policy. the republ...

Afford another extension of unemployment benefits without making sure we don't add to the debt. democrats say -- joining us liz mcdonald, looking into all of this. welcome. >> delighted to be here. >> martha: good to have you. the argument seems to come down to how this is going to be paid for. republicans are saying you have to find a way to pay for it. we have to cut something out of budget. president obama says lay this money out and help these people. >> this is the central political hot button issue for the midterm elections. speaks to the democrats and the job creation policy. the republ...

Support that position. now, is there something wrong with majority rules? i don't think so. >> of course, today on health care, both sides are arguing the exact opposite position. the senate parliamentarian has a say on whether or not reconciliation can be used, and for what provisions. another thing to keep in mind is that reconciliation is only supposed to apply to provisions that are jermaine -- germane to the budget. now, both parties as we mentioned have used the procedure to pass nail-biters. republicans have used it more frequently, by a 2 to 1 margin, republicans use reconciliation to ...

>> that's ridiculous. look, the current tax code already practices class warfare. put in place by republicans. if you make $100,000 a year you may 40% in total income taxes federal state and social security and all of that. if you make 100 million per year you pay 16%. right now we currently have a massive transfer of wealth from the middle class hard working stipulates to only 2% of americans who got the majority of the bush tax cuts. time to make every pay their share and that include includes the rich. >> a law that you mean basically everyone from pay as you a go rules except the rich. is ...