Continued Political Bickering In Washington Does Not Instill Confidence In Businesses That Could Create Jobs
ROMANS: Plenty of unfinished business in Washington. The super committee's recommendations to cut long-term debt, the president's $3 trillion debt plan, and, of course, the president's $450 billion American Jobs Act. Congress hasn't touched the jobs bill which has been consistently criticized by Republicans.</s>SEN. MITCH MCCONNELL, (R) MINORITY LEADER: If a bring needs fixing, by all means, let's fix it. But don't tell us we need to pass a half a trillion dollar stimulus bill and except job killing tax hikes to do it. Don't tell the people of Kentucky they need to finance every turtle tunnel and solar company on some bureaucrat's wish list in order to get their bridges fix.</s>ROMANS: Robert Zimmerman is a Democratic strategist. Will Cain is a CNN contributor. Robert, I'll start with you because Republican Mitch McConnell is making a point Will has made many times on this show. Is this jobs act about real job creation or is it short-term stimulus that's only going to add to our deficits.</s>ROBERT ZIMMERMAN, DEMOCRATIC STRATEGIST: Actually it is going to be about both. The reality is, what you just saw from Mitch McConnell is really an illustration of what's wrong with Washington, because in a sense conflict works in politics. That's how they got there, was through conflict. The economy doesn't work through conflict. The economy only works through cooperation. Ultimately we're not going to see any real progress in terms of job growth or any real stimulus to the economy unless there is more cooperation. Ultimately, it's up to the American people to demand it.</s>ROMANS: Well, the economy is not working but everyone disagrees on exactly how to get it working again. Let's talk about taxes. Because one of the things the president would like to do, we would like to implement something called the Buffet Rule, named for the billionaire, of course, Warren Buffet, who says Washington has coddled rich people like him for too long. And that he doesn't pay enough in taxes. The Buffet Rule headlined a plan by the president, that centered on the wealthy paying more, allowing-also including allowing those Bush- era tax cuts to expire for the wealthiest. Republicans say class warfare. You've all heard this all week. But with the poor getting poorer, rich enjoying the only growth you saw over the past 10 years, is it time for the wealthy to pay more?</s>WILL CAIN, CNN CONTRIBUTOR: That depends on what your motivation is. If your motivation is simply to even out the wealth spectrum so the rich doesn't have as much, and the poor have more, then it might be effective. If your goal is to actually stimulate jobs and growth as Bob just suggested, I think it's a poor measure to affect that. President Obama is giving lip service to this in the past, Christine. You can use the tax code to stimulate economic growth and create jobs by simplifying it, doing away with deductions and exemptions and loopholes. The truth is, when you have an over complicated tax code, something like 14,000 pages. You know who knows how to negotiate that best? Rich people and their accountants. Simplify it, you will have a huge economic boone. You could even lower tax rates and have tax revenues to the government go up.</s>ROMANS: Can they guys decide-I mean, simplifying tax code, tax reform sounds so great. I don't see any give-and-take in Washington right now. I mean, could they really do it together?</s>ZIMMERMAN: I think there is a much bigger issue, here, OK? The first goal has got to be create economic growth and to stimulate the economy. Ultimately we're not going to do that with-we're not going to move this economy forward without creating economic growth. If your focus is deficit and taxes, that's going to paralyze the Congress. I think you've seen what the American Jobs Act a program even Republican economists like Mark Zandy, who was a top McCain advisor, said this could reduce unemployment by 1 percent. That has got to be the first focus, is to grow this economy. The deficit and the issue of taxes, which are in the outer years, that's got to be addressed at a later time, after the economy is moving forward.</s>ROMANS: We have to do it all. The only problem is, it has to be done all together. We're not in a position now-- we've given up an awful lot of time, pushed this forward years and years. They have to do it the right way. And I think we look at Washington and we're not sure they can do it the right way, Will?</s>CAIN: But to answer Bob's question on whether or not stimulus is an effective way to stimulate the economy, and create jobs, there is a serious economic argument and debate to be had there. But one thing people seem to agree on, whether or not it's the Obama reduction panel, Bowles-Simpson, or the Domenic-Rivlin panel for deficit reduction as well. They have all forwarded this idea of tax simplification. Reform the tax code. Whether or not it's conservative economists or President Obama this is an idea that people are rallying-Christine there's a reason they haven't enacted it. You asked that question a minute ago. The tax code is a way to use social engineering, to influence people's behavior. We decide people we want to buy homes, we give a tax incentive to do it. We have to let go of that concept.</s>ZIMMERMAN: Will, the bottom line is the Rivlin-Domenici Commission, the Bowles-Simpson Commission all talked about shared sacrifice. Every national poll shows the same thing, that commitment to shared sacrifice.</s>CAIN: But I'm not making an argument for flat taxes here.</s>ZIMMERMAN: That's not the point. The point simply is if we are going to move this economy forward, yes, shared sacrifice is part of this. But we also have to recognize both parties should increase their doses of Dramamine, because they are all spinning themselves.</s>ROMANS: I want you guys to listen to this for just a second. Mitt Romney making a case for middle class tax cut at the Republican presidential debate this week. Listen.</s>MITT ROMNEY, (R) PRESIDENTIAL CANDIDATE: I know there are some that say, look, we should lower taxes for the very highest income people, other folks have different plans. My view is very simple. The people that have been hurt most by the president's economy, the Obama economy has been the middle class. That's why I cut taxes for the middle class.</s>ROMANS: Robert, is it responsible for any politician left or right to talk about tax cuts when we have a drastic need for deficit reduction?</s>ZIMMERMAN: You know something the drastic need has got to be to grow this economy. And in the American Jobs Act, the president has put forward a bill with many proposals the Republicans support. For example, payroll tax cuts, to give working families $1500 extra through tax cuts, or create incentives for employers to create employment. So, what Romney is doing it just political posturing. Quite frankly, it is an example of the type of conflict that has paralyzed this economy. I would make this point to you. We have seen the economy grow in sectors of our country. We've seen San Diego become a bio-tech, the bio-tech leader in America. We have seen certainly tremendous growth in Pittsburgh through nanotechnology. We've seen Cleveland expand through the Cleveland Clinic or Silicon Valley come back. We are seeing economic growth emerge when there's cooperation between the government and between the private sector. The problem, is in Washington it's just the opposite. They were elected to oppose cooperation.</s>ROMANS: Last word to Will.</s>CAIN: I would just say I'm glad that Bob admits that in addition to some kind of government spending, tax cuts can have a stimulative effect. I would just say the Obama admission is going about it the wrong way. Another loophole, another exemption for payroll taxes, or whatever, are temporary measures that don't have the effect of simplifying the tax code.</s>ZIMMERMAN: Bottom line is, Will, you are outlining once again-</s>ROMANS: Wait! Will got the last word! We didn't interrupt you about the-</s>ZIMMERMAN: Took my best shot.</s>ROMANS: Will Cain, there you go, guys. Have a great weekend. Come back and do it again, right? Is it possible to anger 750 million people at once? Apparently it is. We'll explain what it's all about and why you very well might be one of them next.