The Fiscal Cliff Compromise - Reihan Salam

  • Aired:  11/27/12
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National Review writer Reihan Salam introduces his book, "Grand New Party: How Republicans Can Win the Working Class and Save the American Dream." (5:05)

(LAUGHTER) (CHEERS AND APPLAUSE) AND FOLKS, PETER KING IS NOT ALONE.

ALL OF THESE REPUBLICANS, THIS BOX OF PEACH CRAYOLAS DOWN HERE -- (LAUGHTER) ALL OF THEM HAVE V THE BALLS TO

SAY THEY DON'T FEEL BOUND BY THE NO TAX INCREASE PLEDGE.

WHAT THE HELL IS GOING ON?

HERE TO TELL ME WHAT THE HELL IS GOING ON, PLEASE WELL FROM "NATIONAL REVIEW" AND CO-AUTHOR

OF "BRAND NEW PARTY, HOW REPUBLICANS CAN WIN THE WORKING CLASS AND SAVE THE AMERICAN

DREAM" REIHAN SALAM.

REIHAN, THANK YOU VERY MUCH.

(APPLAUSE) THE BOOK IS CALLED "THE BRAND NEW PARTY." LET'S TALK ABOUT THIS GRAND NEW PARTY.

I DON'T UNDERSTAND, IS THIS THE END OF AN ERA?

WHY HAS THE REPUBLICAN PARTY LOST THEIR SPINE?

>> THE TRUTH IS REPUBLICANS ARE FACING AN INCREDIBLY DIFFICULT POLITICAL ENVIRONMENT AND A

REALLY CHALLENGING FISCAL ENVIRONMENT AS WELL AND THAT'S PUT A TON OF PRESSURE ON

ADHERING TO THE PLEDGE.

>> Stephen: ISN'T GROVER NORQUIST GOING TO BRING DOWN THE HAMMER ON THESE GUYS COME MIDTERMS?

>> IT'S VERY HARD TO SAY BECAUSE IN SOME PLACES-- FOR EXAMPLE SOUTH CAROLINA AND GEORGIA--

THAT'S VERY POSSIBLE.

BUT YOU HAVE TO UNDERSTAND --.

>> Stephen: REAL AMERICA.

>> EXACTLY.

BUT, YOU HAVE TO UNDERSTAND -- HEY, I'M FROM BROOKLYN, MY FRIEND.

THAT'S REAL AMERICA, TOO.

(CHEERS AND APPLAUSE)

>> Stephen: NO, EXCUSE ME, CALM DOWN, THAT'S "REAL" AMERICA.

IT'S IRONIC PATRIOTISM.

>> AMERICA HAS CHANGED A N A LOT OF WAYS OVER 20 YEARS.

ONE OF THE BIG CHANGES IS THAT WE HAVE A LOT MORE PEOPLE OVER THE AGE OF 65.

AND REPUBLICANS, LIKE DEMOCRATS, LIKE PROGRAMS LIKE MEDICARE AND SOCIAL SECURITY SO WHEN YOU HAVE

A LOT MORE OLD PEOPLE, THOSE PROGRAMS GET MORE EXPENSIVE AND THAT MEANS THAT IT'S HARD TO

KEEP TAX LEVELS EXACTLY WHERE THEY HAVE BEEN DURING THE BUSH YEARS.

>> Stephen: THAT'S FINE.

BUT WHY IS THIS HAPPENING PUBLICLY.

WHY ARE PEOPLE LIKE LINDSEY GRAHAM AND SAXBY CHAMBLISS SAYING THIS SORT OF THING IN PUBLIC?

IS THERE A NEW POLITICAL ENVIRONMENT WHERE THESE CONGRESSMEN, THESE SENATORS WANT

TO APPEAR REASONABLE AND RESPONSIVE?

>> IT'S MORE THAN JUST APPEARING REASONABLE AND RESPONSIVE.

>> Stephen: REALLY.

CAN'T WE JUST APPEAR IN WAY AND THEN LATER GET WHAT WE WANT.

WANT?

THERE'S MORE THAN ONE WAY TO SKIN A CAT HERE.

>> YOU MIGHT BE AWARE THAT REPUBLICANS REALLY LIKE A GUY CALLED RONALD REAGAN.

PERHAPS YOU'VE HEARD OF HIM.

>> Stephen: I FEEL A RONALD REAGAN TATTOO ON THE SMALL OF MY BACK.

>> I SHOULD HOPE SO.

>> I'M GETTING A REAGAN TATTOO ON MY FACE.

BUT WHAT I WANT TO TELL YOU IS THAT RONALD REAGAN AGREED TO TAX REFORM THAT LED TO LOWER TAX

RATES BUT ALSO HIGHER TAX REVENUES FROM RICH FOLKS BECAUSE IT GOT RID OF LOOPHOLES AND DEDUCTIONS.

>> Stephen: YOU LOWER TAX RATES, REVENUES GET HIGHER.

I ALREADY SAID THAT EARLIER.

>> IT'S A COMPLICATED THING.

>> Stephen: IT'S NOT COMPLICATED LOWER/HIGHER.

>> YOU CAN GET REVENUE GAINS FROM MAKING IT CLEANER AND FAIRER AND MORE TRANSPARENT AND

THAT'S WHAT REPUBLICANS --.

>> Stephen: WAIT, SIMPLIFYING THE TAX CODE, CLOSING LOOPHOLES, IS THAT NOT RAISING TAXES?

ARE THOSE TWO THINGS DIFFERENT?

>> YOU HAVE HIT ON A VERY TRICKY AND IMPORTANT ISSUE, STEPHEN, WHICH IS THAT, YES, THERE'S A

WAY TO RAISE AVERAGE TAX RATES ON HIGH EARNERS WITHOUT RAISING THE MARGINAL TAX RATE ON HIGH EARNERS.

>> Stephen: WOW, I'M INTERESTED IN WHAT YOU JUST SAID AND YET IT'S INCREDIBLEBLY BORING AT THE

SAME TIME.

(LAUGHTER)

>> FAIR ENOUGH.

I'M TRYING TO SAY THAT YOU CAN INDUSTRIAL A 35% TOP RATE AND SAY WAIT A SECOND, RICH PEOPLE

ARE NOT ABLE TO TAKE THE SAME KIND OF DEDUCTIONS THAT TAKE TAKE UNDER TODAY'S TAX CODE.

>> Stephen: BY'M A RICH PERSON, WHY WOULD I LET DHOPL THAT?

>> YOU MIGHT DO THAT BECAUSE YOU MIGHT SEE THAT THAT WOULD BE BETTER FOR THE COUNTRY AS A WHOLE.

>> Stephen: YEAH, BUT -- (LAUGHTER)

>> DEDUCTIONS REWARD CERTAIN KINDS OF ECONOMIC ACTIVITY AND PUNISH OTHER KINDS.

>> Stephen: WHAT ABOUT KIND?

HOW ABOUT GETTING PAID A LOT OF MONEY TO DO A T.V. SHOW?

WHO GETS REWARDED ON THAT ONE.

>> LET ME GIVE YOU A FOR EXAMPLE.

MITT ROMNEY, YOU MIGHT REMEMBER HIM.

>> Stephen: MITT ROMNEY!

>> YOUR FAVORITE!

(CHEERS AND APPLAUSE)

>> Stephen: BLESS HIS NAME!

THE IT WAS RIGHT THERE.

IT WAS ON THE BACK OF MY HEAD.

I COULDN'T REMEMBER THAT GUY.

YEAH, I REMEMBER THAT DUDE.

WHAT HAPPENED TO THAT DUDE?

>> HE FLOATED THE IDEA OF A DEDUCTION TAX AT $50,000.

NOW, IF YOU HAVE A DEDUCTION TAX THAT'S THAT HIGH, YOU'RE GOING TO HIT VERY HIGH EARNERS BUT

RAISE A TON OF REVENUE.

YOU'RE GOING TO RAISE $800 BILLION OVER TEN YEARS WHICH IS EXACTLY WHAT PRESIDENT OBAMA HAD

ASKED FOR AND AGREED TO WITH SPEAKER BOEHNER BACK IN 2011.

NOW PRESIDENT OBAMA IS SAYING HE WANT MRS. REVENUE.

HE WANTS $1.6 TRILLION.

BUT THAT'S BIG PROGRESS AND YOU DON'T HAVE TO RAISE THE TOP RATE TO GET THERE.

>> Stephen: OKAY, WHAT HAPPENS NEXT?

DO WE GO OVER THE CLIFF?

DOES THIS HAPPEN BEFORE THE CLIFF OR AFTER THE CLIFF?

OR DO WE MAKE THE DEAL AS WE'RE PLUNGING TOWARDS THE RED SOX.

>> IF WE GO OVER THE CLIFF THEN SUDDENLY GROVER NORQUIST'S PLEDGE BECOMES INOPERATIVE.

>> OH!

SO HE'S POWERLESS.

IT'S LIKE SOMEONE GUESSED HIS NAME AND SENT HIM BACK TO THE FOREST.

(LAUGHTER) WELL, PLEASE COME BACK WHEN WE FIND OUT WHAT HAPPENS.

>> ABSOLUTELY.

>> Stephen: THANK YOU SO MUCH.

REIHAN SALAM, "THE GRAND NEW

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