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Neighborhood of revenue on the table. kelly ayott said if we're going to increase revenue, it's going to go to the debt with real entitlement reform and real tax reform. a grand bargain? >> i agree that that is ultimately the way out of this mess. >> so how do you get there? >> well, the way you get there is you sit down at the table, you figure out how much more deficit reduction you want to achieve to hit your targets. and how you're going to get there. and the president has still standing on the table, he still has on the table a proposal that would get you there. i mean, and it has about $...

Table a proposal that now has more in the way of spending cuts than it has tax increases on the wealthy. look, it is a talking point. i don't fault terry for using it, that you hear out of the republican party that the president is somehow unwilling to bargain. again, i think -- >> but that's then reported. that's true fact. he said from the beginning that he wasn't willing to discuss entitlement reform. in fact, today when david gregory asked the president what his first priority was he didn't say spending cuts. he didn't say reform of entitlement. >> terry, i didn't interrupt you. >> he talk...

Jet fumes from the national airport and people get out of school and the holidays come and people will sit down and -- >> look, here's a fact. the president has on the table a proposal that reduces the deficit by $4 trillion. that is substance. so he has not waited for people to start smelling the jet fumes at national airport. he has actively put forward a plan. >> okay. welcome back to "morning joe." welcome back. christmas is coming. >> all right. >> can you believe it? >> yeah, the christmas tree. it's looking beautiful. harold ford jr. is still with us and co-founder of the no labels orga...

Congress and the white house is only going to become more of a white-knuckle moment. >> jim, let's stay on this topic. and i can see grover norquist out there. what's the deal with him and the strength that he has had in past congresses, with past people in public office and his strength or his perceived strength today on this debate? >> there's no doubt he has strength and has perceived strength. it's weaker today than it was before the election. i think the republican party from bobby jindal on down is rethinking its rigid stance on a lot of issues including taxes, including immigration. tha...

September. >> let's talk about this sequestration and the dod. studies out from trade groups related to defense contracting and say if these cuts go forward you could see about a million jobs lost. you know as well as i do that would affect jobs in maryland, swing states like virginia, florida, ohio. are you worried that the threat of possible layoffs in swing states will force your party to compromise early on this, to avoid the president losing those states? >> once again, luke, we actually already put on the table a proposal to prevent the sequester. if we enacted it it would prevent the se...