investor on the planet. you have don't get fbn? >> nine of ten doctors agree if you don't get fbn, demand it. yeah, that's right. >> neil: okay. good for them. >> greg: this is a fox news alert. no deal. supercommittee has super fai failed. hello, i'm super greg gutfeld with super kimberly guilfoyle, super bob beckel, super eric bolling and super-duper dana perino. yes, the panel couldn't figure out how to cut $1 trillion in the next decade. like demi and ashton it seemed doomed from the start. on the list of the most interesting things on the world. the supercommittee falls between the paperclip museum in milpitas california and tony shaloop back hair. just because it's boring doesn't make it trivial. boring things that kill you. more people die in hour of

charlie rose than any other program. statistics i made up. anyway, you want to know why the super committee is super over? the panel is just a boiled down version of our government. we had two sides equally divided over taxes. more important it was reverse engineer for failure. creating the automatic triggers that are supposed to cut spending, panel could have gone shopping for hummels instead. so it comes down to this. the democrats want to raise taxes. republicans didn't. back to where we started hoping that demi and ashton could somehow work it out. so, eric, it's not super. what just happened? >> eric: i think we have been played for the fool. i honestly. do bring it down, exactly here is what it is. they want to know is it spending or revenue problem? it's a spending problem.

$1.2 trillion in ten years. $120 billion per year. our budget this year, $3.6 trillion for this year alone amounts to a 3% cut. in spending. 3% cut in spending. meanwhile, we spent $460 billion since the day the super committee was formed. the revenues don't go up. revenues are going up. this is a spending problem. >> bob: i know you agree -- >> greg: bob, i know you agree 100% with eric so i won't go to you. >> bob: i know you won't. on a serious note unlike the unserious statistics, this was an opportunity that is so rare for congress. both sides are to blame. to get this power, to bypass committee of the congress. to go to the floor of the house with an up-and-down vote

won't happen again. they had an opportunity to do it. i will blame democrats some because they were late with entitlements which they did last week. the republicans are ridiculous in their support of millionaires. this worth a discussion, they have done well for the millionaires. this is outrageous. outrageous. >> greg: here is the thing. you knew it would happen. that's why the automatic triggers were there. this is kabuki theater. you knew that. it happened before. >> bob: look, i'd like to see how the republicans will do this when it takes $600 billion out of defense and the lovely defense progra programs. >> bob: dana? >> dana: i am super annoyed about the spin from some. let's see. the republicans two weeks ago put on the table revenue increases that flew in the

face of what a lot of conservatives thought they should do. closing of tax revenue and lowering the rate. before they thought it through, the democrats dismissed it out of hand because they want to say we raised the taxes on millionaires. all they cared about. remember, also, that this deal only came about because president obama needed to get the debt ceiling thing done in august. this was the sweetener that got it there. to kick it down the road, i agree that all sides can be blamed but this will get cut. the secretary of defense leon panetta is most concerned about the defense cut. the go-between the white house and across the river at the pentagon is so wide. media ignored that. a big deal. >> greg: we haven't heard anything from president obama about this. he hasn't thrown up to play. boehner had something to say.

>> kimberly: he did. he issued following statement on the announcement by select committee from the deficit reduction in cochair. he disappointed that the house will forge ahead with commitments we have made, reducing the government spending and removing the standing in private sector and job creation. this is the same rhetoric from the beginning. be honest, did anyone expect a different outcome? >> bob: i did. >> kimberly: honestly? >> greg: i did. i thought for once they would show courage. thigh had an opportunity to do something here. what you need to do is come up with the entitlement cuts that will be required to do that, one. that requires cutting entitlement. that is fine. >> eric: when george bush's first budget was $1.# trillion. spending doubled in ten or 1 years. doubled. >> eric: the doubling of the

defense spending. with the republicans, and the tax increase they said aren't we brave? we came up with taxes -- pat toomey. the only thing -- the fact is the only thing they said that would be contingent on keeping the bush tax cuts for rich people. >> eric: where is obama? where is obama? asia, hawaii playing golf. should about he be involved in this process? >> kimberly: he wasn't anywhere and phoned it in from hawaii. he wants failure because that's what he will run against. last week they said yeah, we're hands off because it's a congressional issue. this is the deal they cut to get the debt ceiling deal. now, today, the spokesperson says of course, the president has been very involved. of course, we are urging congress to get a deal done. this is leading from behind

domestically. i think the white house takes blame. >> kimberly: you associate it with failure again. >> eric: he knows they never buck from the -- >> kimberly: he knew the outcome. >> greg: he is calling from hawaii, which isn't part of america. >> greg: thank you. >> greg: who benefits politically from this? is everybody tarred? >> kimberly: both sides have a lot to lose. the republicans held their ground and they wanted to increase taxes and they wanted more cuts. the whole deal. plus president obama doing class war fair and running against a do-nothing congress. because of them it's intractable. >> eric: this is obama's legacy right here, right? >> bob: no. congressional legacy. the reality, bottom line can not -- >> eric: they won't say who is in congress? >> bob: you can't come up with the number without revenue. >> eric: 3%?

>> bob: yes. >> eric: it doubled in three years. >> bob: take $3 trillion out of domestic spending. >> greg: kimberly? >> kimberly: harry reid agrees with bob. american people are tired of the elected leaders listen to extreme voices in the party instead of voices of reason. disappointed that the republicans never found the courage to ignore the tea party extremists and millionaire lobbyists like norquist and -- >> bob: exactly. >> dana: this is my point. the democrats poll tested this line to death. toomey, kyl and portman put on the table is defiance of grover norquist. >> bob: defied it, true. >> dana: what is harry reid saying? it doesn't make sense. >> bob: can i get the poll to show what the american people think of this? do we have that? i want to show how american people think of millionaires. >> dana: oh, please. >> bob: you is it around here as if you are somehow --

>> bob: wait, pay attention. if you have something to pontificate here when two-third of the american people want a position. >> eric: what number do you think the millionaires and billionaires should be taxed at? >> bob: 60%. >> eric: if you raise tax rate of millionaires and billionaires to 60%, you wouldn't touch the problem. >> bob: you'd get a big start on it. you say the millionaires create jobs. they don't. vast majority are created by the small and middle income businesses. >> greg: you hate rich people. this is important for all of us. because the super committee is so complicated and so depressing i asked for the spirit of macaroni steve dussey to guide us through difficult times. when you find yourself unhappy, this is made of macaroni.

>> kimberly: it look like spaghetti on his head. >> greg: beautiful spaghetti. how dare you insult macaroni. get out of here. get out of here. all right. we have to take a break. can you believe that? another terror plot in new york city is uncovered. it's the largest muslim civil rights group telling people not to cooperate with the police? i don't know. stick around. find out.

>> eric: this is a fox news alert. president obama will make a statement on the super committee at 5:45. we'll bring it to you live right here on the fox news channel. you think this is too little, too late? >> dana: this i got to see. i don't know how with a straight face they say jeez, we wish congress could have done their job. let me take a page out of my campaign play book. right here. do-nothing congress. perfect. fits right in. check the box. moving on. >> eric: bob, anything less than blaming the republicans? >> bob: for good reason. they should be blamed. if the republicans say -- you say it's poll tested, not with me. i think grover norquist is a

thug and a punk. if he can scare the republican party to a sill pli pledge when history gave them an opportunity to do something big. >> dana: it doesn't make sense. what they offered was not in line with what grover norquist suggested. >> bob: i agree with you on that. i think they did finally buckle that little -- >> eric: go ahead. >> bob: okay. president obama stayed away from this. the congress when this committee was formed said mr. president, we don't want another shuttle back and forth from the white house. a congressional, i. he stayed away and now he's blamed for it. blame the do-nothing congress. >> bob: he should stay away. coming on at 5:45. i had good jokes i'll not be able to use. america wanted to hear the jokes. i'll recycle them like i always do.

>> kimberly: save it for another day. blowing up my block, too. i'm furious. >> eric: bob wants to blame grover norquist is guy not even in congress. >> kimberly: it's interesting that all of a sud when is like buehler, buler? print. he's here now and ready to talk about it. where was he? i don't care if they tell him stay away from the issue. we have a congress. now he wants to step forward. blame congress. >> eric: democrats had a -- >> bob: democrats had prose sal, too late. they had a proposal. came from the president of the united states the members of the committee. they said fine, you buckled on entitlement. we will give you the tack cuts but you got to keep pushing. >> dana: who wanted the tax cuts extended is president obama. that's when he had a big

ceremony. regardless of grover norquist as a person, what he embodied is republicans stand for government cutting spending. what i think needs to happen is we have to have a reality check on entitlement spending. the budget is a pie chart. entitlement are growing like this. everything else is squeezed. everything we care about. maybe it's education spending or this and that. every day we wait -- >> eric: this is important. can we talk -- right now the super committee builts. >> bob: here is what you are faced with. what happens at the end of the year payroll tax cults go away. they don't get extended 2 %. the extension of unemployment benefits go away.

the last thing is they are not going to do away with the triggers. it takes two-third vote to do it. it won't happen. neither side had the guts -- >> dana: they can redirect the cuts. >> kimberly: the triggers wait for it. it's 2013. it won't happen right away. >> greg: we'll keep going. >> eric: talk to me about redirecting the cuts. what do you mean? >> dana: like the super committee, they would haven't had cover of joint committee but congress can get together to decide where the cuts will be. defense cuts are serious. you have to plan for that. >> bob: to clarify this. the cuts are -- by the way, they are law. they can't -- it takes two-third of them. you can't get them to agree on anything. >> kimberly: this is tabled until after the election on purpose >> bob: no way to undo the

triggers. they have to be split equally between domestic and defense. move it around within the domestic spending and military but you can't change the formula. >> eric: this is a big gain. watching now going they never were going to get this thing. >> dana: i am thankful they pulled the plug on it today so we don't have to talk about it all week. >> greg: i was talking to macaroni steve and we came to the idea this is bigger idea, class wa warfare. republicans are evil protectors of the rich and democrats try to help the poor people. this is class warfare. >> dana: will there be macaroni warfare. >> bob: the people up for raising taxes on the wealthy people, big percentage of the republicans. >> greg: easy to demonize the rich. >> bob: talk about 1%. why continue of all people -- why do you continue to support

it? >> bob: i want to be a biggie. >> greg: everybody wants to be rich. i know you hate that. nobody paid more taxes. >> bob: do their fair share. >> bob: they pay half the taxes. >> bob: they don't. >> greg: i'm going to have a coronary and i'm in better shape than you are. >> bob: that is not the point. the stocks, by refusing to deal with this lost an opportunity -- >> greg: this is class warfare. >> eric: why is it, bob it's, with you it's point at taxes. they've gone up year after year. you are a smart guy. you have a family. have you run a business? >> bob: yes. >> eric: have you run a business spending 40% more than you are taking in. every single -- you can't do it. >> bob: it's not every year. the budget goes up dramatically because of the entitlement.

if you look at social security and medicaid budget from last year to this year up a huge amount of money. >> eric: it's increased $5 trillion in three years. someone called a spender it increases 5.8 years. >> bob: if you look at the way this works easy to say with a checkbook the law is you have to pay social security and medicare. what is your answer? both. both. >> eric: both. waiting for speech on the super committee. stay with "the five." we'll be right back. ♪ ♪

>> dana: a fox news alert. super committee failed to reach a deal and now we're waiting to here from president obama. he is expected to make a statement but not expected to take questions. hmm. i'm just for taking questions. that's how i am. >> greg: is that rude? you would take questions. >> dana: i think in some ways he takes fewer questions than previous presidents from the press. but short statement. there has been a lot before today. senator rand paul had one. we'll get everyone's take including macaroni steve's. >> we have to start on the facts, are the rich paying their fair share? we hear that over and over. rich is not paying their fair share. the top 1%, millionaires in our country pay on average 29% of their income.

that is what they pay on average. the average carpenter pays between 15-18%. the top wage earners may 50% of the income tax. rich are paying the their fair share. >> dana: is this a debate they're paying their fair share and how much is a fair share share? through the end of november and who do you think will have a better argument? >> kimberly: you will see in november and next year. the election politics and rhetoric. they're both saying the same talking points. rich are paying too much. we have too many taxes. how are you going to do this? this is two sides. entrench sticks with their points.

>> greg: democrats have an edge. media is on their side. we have developed an attack the rich cult. occupy wall street. you have to tax the rich more. research show that it doesn't do any good. it's a lie. >> eric: let me make a point. this will be good for conservative g.o.p.ars. this is proof that big government, what goes on in d.c. can't go on. you have to stop it. cut the crap. if you get serious about cutting spending. >> kimberly: that is what you said. >> dana: one of you two asked a good question earlier. who does it help politically? it helps the challengers a lot. in this swing year, incumbent of all stripes are -- >> eric: 2010 that's what it

was. people were kicked off in obama. the size of government. step up to take the senate. >> bob: elections have consequences. no question about it. we had an election. republicans won most. if i listen to rand paul not a candidate for a rhode scholarship, sitting here saying that -- that was a cheap shot. i take it back. but the fact is when he talks about 27 to 28% for millionaires. that is $270,000 in taxes. talks about guys making $57,000 as carpenter who pays $20,000 in taxes. hitz net is 55 -- his net is 55. the millionaire is still making $735,000. do you find that fair? >> greg: yes! he creates work and produces something. it's falled at that amount.

that is how much he deserves -- >> bob: can we get rid of the talk about the millionaires creating jobs. >> greg: i am talking about creating work. >> eric: this is a problem with the liberal leftie progressive liberals. you have don't understand what it costs to create a job. if this works you are we warded. >> bob: overwhelming jobs are by the small and medium companies. owners don't make million dollars. >> dana: you have to ask yourself. i'm not in this position. how much then of the income they get do they plow back in the businesses? that is a fair question. the other person, the other type of person that it might help is the whole situation is presidential candidate that

has a flatter, fairer tax system at the center of his economic plan. or her. >> bob: that would be -- >> kimberly: bachmann or perry. >> bob: it's too late for that. >> dana: rick perry has one. >> kimberly: perry, bachmann. >> bob: but face it, they are not going to get the nomination. probably the person is mitt romney. he does not have a flat -- >> eric: this hurts mitt romney. the failure in d.c. hurts him. the established republican b.s. that goes on folds in perfectly with the democrats. >> bob: that is a good point. this will hurt all incumbents. one thing about the people in congress, i will say this. the last cnn poll had who is to blame more? 50% republicans and democrats. there will be surprises. big-time incumbents will be knocked off.

>> dana: some of democrats have already come out and said president obama didn't do enough to help them. his role could be to bring people together. >> greg: the only person to get us out of this is macaroni steve doocey. you found your leader. >> kimberly: his hair is amazing. uncanny. >> bob: doocey would do a better job than the super committee. >> kimberly: i agree with the incumbent. look at what happened with the mid-term election. >> dana: we have to tease, because coming up, president obama is expected to make a state in the minutes on the super committee. we'll bring it back to you live on fox.

. congratulations.

congratulations. congralations. today, the city of charlotte can use verizon technology to inspire binesses to conserve energy and monitor costs. making communities greener... congratulations. ... and buildings as valuable to the bottom line... whoa ! ... as the people inside them. congratulations. because when you add verizon to your company, you don't just add, you multiply. ♪ discover something new... verizon. i'm bret baier in washington. the big story here today, of course, the official failure of the deficit reduction committee. we're awaiting for an on-camera statement from president obama at the super committee failure. tonight on "special report" why the super committee could

not come up with a way to trim $1 trillion from the federal budget. we will hear from members from both sides. the member of the super committee means work for rest of congress. we'll tell you what needs to be done and when. brit hume gives us his analysis on what went wrong. newt gingrich unveiled his entitlement plan and we look inside and go over the rest of the 2012 campaign news today. texas governor and presidential candidate rick perry will be on the center seat tonight. the governor will take questions from the all-star panel. new york police say they foiled another terror plot. we will have details. "special report" from washington starts at 6:00 eastern. we'll have the president in just a moment. but now back to "the five" in new york. >> bob: fox news alert. we're continuing to follow developments of the super committee. they were unable to reach a deal. unbelievable. in less than ten minutes from now, president obama will make a statement.

this apox on their houses here. the people were given the kind of opportunity that has never been in power given to 12 people in the history of the united states. they didn't take the opportunity. none of them had tough re-election campaigns. none of them had any particular pressure on them. they could not have dealt with. yet, they buckled. the democrats did not come forward with the entitlement cuts which have to happen. republicans if they stick with this, no taxes we're going nowhere. i blame the republicans more than democrats but i blame them both. >> dana: 60/40? >> eric: where is the president, bob? i'll say it again. >> dana: he is about to walk out. >> eric: right. i don't mean where is he right now. >> kimberly: how clairvoyant of you. >> eric: this is stemming from the failure to work with the house. couldn't work with the house so they had to go to a super committee. >> eric: he worked with the house -- >> bob: yes. don't you remember there. should have been a payoff.

some people thought they'd show courage. >> kimberly: really? what are the odds? >> bob: this was boehner and the president and reid and the rest. he was involved. that was in august. >> eric: he was involved and he failed. that is why we have a super committee. he worked with the republicans to figure out a way to make spending cuts. he and bane -- >> bob: he and boehner had a deal. wait. obama was willing to cut entitlements. boehner was willing to deal with the tax increases. boehner went back and tea party said no. >> eric: selective memory. >> bob: no. >> dana: that is why -- [ overtalk ] >> eric: obama came back with a different -- >> dana: the deal you are talking about that you, that i don't know for sure, but that the tea party rejected that was revenue raiser that boehner offered. somehow in the last two months, either boehner convinced the rest of his

republicans to go along with him. they maybe not all liked it. that was the deal. >> bob: when toomey had his proposal on the table, the conservative tea people and the house went crazy. >> dana: they didn't like it. but they put it on the table. what we have is anecdotal evidence about the boehner -- >> bob: wait. there was never a vote in congress. we know when toomey came out with this, the house tea people decided they didn't like it and in an uproar. >> dana: the political and congressional elected leadership on republican side decided it was good policy and they were willing to have some of those people be mad, to do the right thing. >> kimberly: can we agree on that? >> bob: yes. boehner tried to do that. >> eric: you are going to hang your failure on tea party? >> bob: absolutely. >> eric: are you out of your mind? >> bob: absolutely. they are the most impossible people. this is an idea of negotiation. they never heard of the word negotiation.

>> kimberly: in harry reid's statement he says the tea party people. >> dana: that is what they do. >> kimberly: they check it and poll test it. >> bob: they will not move. they are refusing to -- >> greg: will not move? who will not move? >> bob: tea people. >> greg: occupy wall street. they're sitting in places and will not move. you are yelling at the tea party. tea party to run out and block streets. can i make a point, though? >> bob: people in washington are not blocking a deal. >> greg: do you want to make a bet about how many times president obama says, "fair share" in the short press conference? >> kimberly: what is the over/under? >> greg: i say six. >> eric: five times. >> greg: bob? >> greg: i hope he says it every single second. that's right. 1982. wealthy people in this country got every break you can get. the rest of us have not. >> eric: do you think he blames the democrats at all? or just republicans -- >> dana: a little bit because he is running against

do-nothing congress. even if it means to run against his own party. democrats are unhappy about but he'll do it. >> bob: what is the problem with fair share? >> greg: it's code for we want your money. we want to punish you for achieving. >> bob: i was asking dana about a reasonable position. >> dana: this is not definable. he gets to decide what the fair share is. the american people get to decide. if you look at some place like washington state last year with a referendum to increase taxes on millionaires and billionaires, it failed. 6 a 5% of the people voted against it. >> bob: when eric said baloney when the poll came up, i happen to believe in polls. vast majority of this country believes there should be -- >> kimberly: 67%. >> bob: that's a lot. >> eric: the baloney is if

you tax wealthy people at 67%, it wouldn't have an effect. my point if you say fair share, this is class warfare. you know the foundation of socialism? class warfare. >> bob: we don't have -- you can't have the class warfare when it's 99-1. not class warfare. we are talking about 1% of the people, the people we want to tax in this deal. >> kimberly: by the way, 1% is making $349,000 a year and up. >> bob: $1 million. >> dana: i think they would be willing to pay more under some conditions. give up some of the loopholes afghanistan for a flatter rate. i also think if they thought that government was for one second going to do something that was smart on entitlement reform or on spending on things like the green jobs in the stimulus bill, they might pay more. >> bob: we have to get out of here. >> eric: once again, president obama is about to deliver a statement at the white house on the super committee failure today. special report host bret baier will take over from here.

bret? >> bret: this is a fox news alert. bret baier in washington. president obama is about to make a statement on the failure of the deficit reduction committee announced a few moments ago. you are looking live at the white house briefing room there. standing by, wendell goler. a quick update before president comes out? >> reporter: it's hard to imagine what the president will have to say. he was asked why he wasn't more involved in the process. jay carney said lawmakers told him to butt out after he and john boehner failed to reach an agreement. now that the super committee failed to reach an agreement, we face sequester. here is the president. >> good afternoon. as you all know, last summer i signed a law that will cut $1 trillion of spending in the next ten years. part of that law required congress to reduce the deficit by an additional $1.2 trillion

by the end of this year. in september, i sent them a detailed plan that would have gone above and beyond that goal. the plan that would reduce deficit by additional $3 trillion by cutting spending, slowing the growth and medicare and medicare. asking the wealthiest americans to pay their fair share. there were a number of other bipartisan plans to consider from democrats and republica republicans. all of which promoted a balanced approach. this approach to reducing the deficit. a report where everyone gets a little bit and does their fair share is supported by an overwhelming majority of americans. democrats, independents, and republicans. supported by experts and economists. from all across the political spectrum. to their credit, many democrats in congress were willing to put the politics aside and commit to reasonable

adjustments that would have reduced the cost of medicare. as long as they were part of a balanced approach. despite the broad agreement that exists for an approach, republicans in congress refused to listen to voice of reason and compromise coming from outside of washington. they insist on protecting tax cuts for wealthiest 2% of americans at any cost. even if it means reducing the deficit for deep cut for education and medical research. at this point they won't budge from the negotiating position. so far, that refusal continues to be the stumbling block that prevented congress from reaching an agreement to further reduce the deficit. we are not in the same situation we were that we were in, in august. there is no eminent threat to

us defaulting on the debt we owe. they are $1 trillion worth of spending cuts locked in. part of the law this summer stated if coverage could not reach an agreement there would be automatic cuts in 2013 divided equally between the domestic spending and defense spending. one way or another, we will be trimming the deficit by a total of at least $2.2 trillion over the next ten years. that is going to happen. one way or another. $1 trillion locked in. er this congress comes up with $1.5 there, so far they have failed to do. or the sequester kicks in and the automatic spending cuts will occur that bring in the deficit reduction.

we can find ways to make the economy grow, operating with a scalpel, not a hatchet. if not, if congress is willing to stick to the painful deal we made in august for automatic cuts. already some in congress trying to undue the automatic spending cuts. my message is simple. no. i will veto any effort to get rid of the automatic spending cuts domestic and expense spending. no easy off-ramps on this one. we need to keep the pressure up to compromise. not turn off the pressure. only way the spending cuts will not take place is if congress gets back to work and agrees on a balanced plan to reduce the deficit by at least $1.2 trillion. that is what they need to do. that's the job they promise to do. they have a year to figure it out. although, congress has not come to an agreement yet. nothing prevents them from coming up with an agreement in

the days ahead. they can till come together around balanced plan. democrats are prepared to do so. my expectation is there are some republicans still interested in preventing automatic cuts from taking place. i am willing to create balanced plan for deficit reduction. we have a lot of work to do before this year. we have to cut taxes for workers and small business owners all across america. if we don't ask, taxes will go up for every american starting next year. middle class americans can't afford to lose $1,000 next year because congress won't act. members of congress have been fight something hard to protect tax break for the

wealthy will fight as hard to protect mittal class families. we need to put construction workers back on the job rebuilding the roads and bridges. we still need to put our teachers back in the classroom educating our kids. everybody gets back to thanksgiving and time to get the work done for the american people. all around the country, americans work hard to live within their means and meet their responsibilities. i know they expect washington to do the same. thanks. >> bret: president obama speaking for about four minutes in the white house briefing room, not taking any questions. saying of the fact that the super committee has failed saying of republicans "they simply will not budge." about the automatic cut, trig they're congress set up, the

$1.2 trillion cut. half from defense and half from domestic spending. efforts in congress to pull back the trigger and not make it stick. simple answer to lawmakers traying to do that, "no, i will veto any effort. there will be no easy off-ramps to this issue." that is going to be a problem for some. especially in the military. leon panetta said the cuts talked about in the triggers would be devastating to the pentagon. bill in the panel. ist -- bill kristol, juan williams, and brit hume. >> what i say about the triggers, the problem with the triggers the reason the triggers didn't have more effect on the super committee the cuts won't start to take effect until more than a year from now. they phase in gradually over ten years. that might impart sense of

urgency. something more might be needed to put away what are deeply held convictions, republicans on the issue of tax increases and democrats on issue of entitlement spending. we never saw proposal to raise taxes the president wanted to raise but on the other hand we want to raise and we never heard from the democrats either a serious effort to get in the entitlement spending, a big driver here. nancy pelosi ordered her charts on the committee not to contemplate this. >> bret: juan, the president, a familiar theme, congress won't act. it seems like he is playing to what he talked about only the campaign trail. >> bret: absolutely. >> it will interpret as a strong political statement and how do the american people view inactivity. congress doesn't seem to take the steps one way oar another. nothing happened. that is the big message now. we're already hearing from republicans out on the

campaign trail. romney, perry, gingrich. some of them saying in some cases it's good for america nothing happened. >> bret: bill? >> i think the president is trying to blame congress and republicans in congress and the house, newest part of congress. i don't rule out it will work to some degree. i don't know it's the most convincing intellectual argument if you disassemble it. but congress looks dysfunctional and broken. president should say we should get stuff done. republican house would be advised to get back and think about passing once again paul ryan's budget. they pass the budget. it cuts more than the $1 trillion for the next ten years. democratic senate hasn't passed a budget. the president of the united states submitted big budget outlines with cuts. he hasn't submitted a budget. if i were john boehner call them in and pass the budget and say this is more than $1.2 trillion, mr. president.

what is wrong with this? >> bret: there are calls today, brit, to have an up-or-down vote on the bowles-simpson plan. the debt deficit reduction commission that the president commissioned and the plan he did not really embrace at all. there are lawmakers on both sides of the ail calling for vote on that. >> the steps that were outlined, are the political gestures. the ryan budget, passed the house. the senate passed no budget of any kind which is a strike against them. in barack obama's washington, there isn't a senate. there is only republican house. that is what the congress consists of now days. an effort to up-or-down vote on bowles-simpson. in a minor way embarrass the president. this is an issue that goes to country as part of the fabric of the congressional electio

elections. the public will decide who it can trust and what to do about this crisis of debt and spending. >> bret: mitch mcconnell put out a statement saying for those of us who hoped the committee could make tough decisions, president obama continues to avoid the democrat rejection of not one but two good faith republican proposals is disappointing. democrats you might not be surprised to know take a much different take. and say republicans are tied to grover norquist with the americans for tax reform. that is in the reid statement and pelosi statement tonight. who is winning the spin battle of the back and forth of how it's playing out? >> if you ask the american people in polls, it's clear. they think that what we should do, washington should do is

close the loopholes. secondly, tax people who make more than $200,000 a year. like 60%-plus. but a basic sense why don't you compromise? as i said before, i don't know if this is going to play to the benefit of republicans or benefits. i think mitch mcconnell is very smart and a savvy political player. no doubt he can point a finger to barack obama and say the president didn't get involved here. >> bret: is it possible it plays to neither? incumbent is a big loser with congress with an approval rating of 9% or lower and incumbents are in trouble? >> yes. if there were a ross peerot route 20 years later looking at what he did in '19-'92, go from nowhere to get 19% of the vote, ahead at one point against president bush and governor clinton a moment for a perot ininsurgency i say. you are getting it within the

republican party. outsiders running against washington. but i think now, you know, if there were a plausible populist outsider third party, come by face of the alleged congressional "insider trading" scandal and the failure of the super committee and everything is broken in washington, it does lay groundwork for powerful, rightly or wrongly, but a powerful populist solve on the two parties failing in washington. >> bret: even this so-called late in game closing in on the iowa caucuses? >> this would be third party. ross perot is nowhere in november. in 1991, he came out of nowhere. early in '92. i don't know if somebody can run. this is not a bad, they're not

bad contrasts for any ross perot type of third party. >> bret: are you fishing here? >> i'm not for it. just being analytical. >> looking for a vehicle for paul ryan. >> 2010 elections were about the recession, which point backdrop, formed a backdrop of the campaign. the general satisfaction of circumstances like that produce. if you are looking for a single issue, they were about spending and the deficit. now, did the republicans who pledged to try to do something about it when they came to washington disappoint their constituency in the answer has to be in terms of achievement, probably so. in terms of effort, perhaps not. i'm not at all sure that the failure of this super committee and the whole effort to try to do something serious and major about deficit of spending will help the democrats this time. i think the republicans may be able to come through this in reasonably good shape with voters that sent them here.

>> bret: you mentioned early. >> you mentioned the bowles-simpson committee. gang of six. they all said we needed more than $1.# trillion this cuts. >> bret: to be honest, we are running up another debt ceiling in january. january 15, treasury department will likely put out a let they're says in the next debt ceiling increase and at tranche of money will be needed and disapproval vote in congress and they will get the money. >> bret: and we have to. >> and we have to deal with the payroll tax cut will expire. that could raise the taxes. that is a curse on both parties here. why not do something balanced? that is what the president said in his remarks. pat toomey had plan with tax increases. it's not clear it was met with a major counteroffer for the democrats to give a balanced package. i'm not sure that that fact is going to ever be known to