For the first time in over three weeks, President Obama and House Speaker John Boehner looked each other in the eye and actually had a conversation! This meeting comes at a very important time because in just 22 days Americans face severe tax hikes and spending cuts unless these two leaders can find a way to compromise. Neither side would discuss specifics but after yesterday's white house meeting a spokesman for the president said – quote – "the lines of communication remain open." This morning, Rep. Judy Chu (D-CA) joins “Starting Point” to weigh in on the fiscal cliff and the recent meeting between the president and Speaker Boehner.
Chu says she, “was encouraged to see the meeting between Speaker Boehner and President Obama” and she “really feels a deal has to be made.” She adds “a deal is to be made that would benefit the people if it were done earlier.”
Chu says, “we need discussion right now…and we need to have a discussion where we could have sensible solutions with regard to the safety net programs as well as the tax cuts.”
On the topic of what democrats will bring to the table Chu says, “Something that should have been done a while ago” is a “ change to Medicare in which we can actually negotiate for drug prices. After all we do it for Medicaid. Why can’t we do it for Medicare? That would be a big savings to the Medicare program.”
This morning on "Starting Point with Soledad O'Brien," Soledad & Romney Advisor John Sununu sparred on topics ranging from the U.S. Consulate attacks in Libya to Mitt Romney's claims on coal, taxes and guns. And in the end, despite the fiery conversation, the discussion was ended amicably. Check out the video links below for more.
Federal Reserve Chairman Ben Bernanke warned in a Congressional testimony Tuesday about the dangers of dropping off the fiscal cliff at the end of 2012. Meanwhile, Congressional Democrats say they will let the Bush-era tax cuts expire at the end of the year if Republicans do not compromise on spending cuts before the deadline.
"Fiscal decisions should take into account the fragility of the recovery," Bernanke says. "That recovery could be endangered by the confluence of tax increases and spending reductions that will take effect early next year if no legislative action is taken."
Soledad O'Brien speaks with Senator Richard Blumenthal (D-CT) on CNN's "Starting Point" about the approaching fiscal cliff. Sen. Blumenthal says Congress should be passing an extention of the tax cuts for households earning less than $250 thousand per year in order to provide the economy with some stability.
Sen. Blumenthal also says that if given the choice of either extending tax cuts for all Americans or ending the tax cuts for all Americans he would vote to extend them, "I think that fiscal cliff is so ominous and so potentially destructive that we need to avoid it." Sen. Blumenthal adds, "We also need to address the need for cuts in spending. I think a balanced approach is the optimal way to go."
Gov. Terry Branstad (R-Iowa) on who should get credit for improved state economies and unemployment rates.