ask if nexium is right for you. if you can't afford your medication, astrazeneca may be able to help. captioned by closed captioning services, inc. >> chris: i'm chris wallace. with just over a month until >> i am chris wallace. over a month until it opens it is all in in november. >> will the state deliver for a long shot. we continue our 2012 series of interviews with republican presidential candidate john huntsman. then the super committee fails. now there's a legislative mess to play on. what's next for congress as it tries to put the country's fiscal house back in order. we will ask two senate leaders illinois democrat dick durbin and arizona republican john kyle. plus newt gingrich's frontrunner standing takes a hit. >> would will ask our sunday

panel if it could cost gingrich in iowa. our power player of the week offers a patriotic idea for christmas shopping. all right now on fox news sunday. >> hello again from fox news in washington. well we are finally entering a home stretch in the run up to real people casting real votes in the republican presidential race. continuing our 2012 interviews former utah governor john hunts man who comes from a state where they are spending a lot of time. welcome to fox news sunday. >> it is an honor to be with you. welcome from new hampshire. let's start with looking nationally you are still trailing the field all of the way back as you can see at 2 percent in last place. in new hampshire you are starting to make gains at 9

percent. you are still kierding to this poll far behind mitt romney. it is not an option in new hampshire. don't you have to win there? >> we have to beat market expectations. people want to talk about our economic deficit and trust deficit. we had two town hall meetings today we will have three town hall meetings. preseason is oef over. we are in the final stretch. more important people love an under dog. i am an under dog right now. you have a message that begins to connect with people on the ground. you can make things happen. do i believe we are going to beat market expectations i absolutely believe we will. that will translate down market to south carolina ultimately to

florida. >> you talk about market expectations perhaps the dock took a hit because the union leader the bigs newspaper in new hampshire has this morning endorsed newt gingrich. isn't that a setback for you? >> it proves how fluid and uncondition shall new hampshire is. people are beginning to pay attention and coal less can around the candidates. a month ago newt gingrich to have been in the running new hampshire union leader endorsement would have been unthinkab unthinkable. it fleekts the fluidity and unpredictability of the race right now if you are talking about stocks i like the free more gain. we have gone from the pack of the pack to number 3.

they do a good job forecasting where the future trends are going to be in the race. you have to have a message that resinates with the voters here. we have a message that resinates. >> let's talk about message. we will get into specifics in a moment. your record as governor of utah was that of a strong conservative. your strategy in this race has been to run as a relative moderate, you are the one who was saying we need to pull not all but most of our troops out of afghanistan sooner than anybody else in that stage except for ron paul. you have been tweaking the other candidates saying you believe in issues like global warming and evolution when the republican party is moving i think it clearly is for the right perhaps

fueled by the tea party does it make sense to position yourself as the most important candidate in the race? >> i am not positioning myself at all um growing on where i have been as a leader. i am not going to con tort myself as a mets ze pretzel and am not. when people look at my record as governor they are going to find what may surprise some people when they begin to reflect on it. i am pro-life and i always have been. i am pro second amendment and always have been. i am pro growth. i have the largest tax cut in that state we deliver healthcare reform in the mandate. when people begin to over look my record they may have discounted us early on chris when i worked as administrator in china people may have thrown us to the back of the pack. now they are saying i guess the

part about this guy who puts country first we can relate to that. i think it's no surprise that people are giving us a first look finally. as they look at our track record of service in combliers as governor they will come to the conclusion i have conservative record on the issues that are applicable to this country. >> newt gingrich got into trouble this week when he said he would support legal status for long time illegals in this country. rick perry got in trouble a few weeks ago for saying he supported in state tuition for the children of lisles. you support both of those positions don't you, sir? oo i support first and foremost to carry the border. don't think it has any intellectual honesty at all.

>> a records are records. you support the idea which was a fact in utah of instate tuition for children of illegals. >> that's right. that was supported by the people of my state and legislature and i supported it as well. itch not running for that at all. we have possibto be honest about relates and ensure between fencing and technology and boots on the ground we can get the job done. it is doable and once that is established and we create credibility we can move on to addressing the needs of reality of 12 million people who are living in the shadows of this country. >> let's turn to budget issues in the wake of the failure of the super committee you now say that the road map to debt

reduction had a $4 trillion fix over the course of the next decade. the commission has $1 trillion in increased tax revenues. they would lower the rights but let's eliminates the reductions and loopholes and they would take a trillion dollars or rather 100 billion a year 1 trillion total use that as added tax revenue to try to strengthen the deficit. would you support that? >> i took their tax reform measure which i thought was a good one. my plan for debt and spending is the riot plan. the only candidate they embraced was the riot plan. it is a joke they are targeting 1.2 trillion over ten years. 2 and a half trillion over 10 years that's not even a serious

attempt at all. i think what he is talking about with 6.2 trillion cut out of the budget over 10 years is exactly where the country must be. we have to get down to 19 percent spending. so the support i thought represented a pretty good body of work. i don't agree with the tax report measure. i combined it with what i did. >> i hate to interrupt. we have limited time. there are tax reform proposal yes it called for lower rates but it also called for taking some preliminaeliminated reduct are the truth teller or you position yourself that over the states some of your rivals are engaging in political theater. isn't it political theater to say i want a solution. given the political realities in

this country to say it has no tax revenue increase? >> what i am calling for on tax reform is the loopholes and deductions on individual income tax side. subsidies on the corporate side which allows us to lower the rate broaden the base and simplify which is what i did. >> it would be a revenue neutral exercise. >> absolutely. i think raising the revenue which some people might be against but reinvesting it into the tax code on the individual and corporate said is something they need. cut tax reform meaningful waist since 96 it is high time we get to doing it. >> first of all foreign policy which is one of your strong suits the pakistani military says nato hit two border checkpoints this weekend killing

at least 24 of theirs in response they wanted the u.s. to shut down one air base they closed two main supply roots in afghanistan supply 40 percent of nato equipment and supplies. what would they do in this serious operation? >> condolences on the 25 pakistani soldier losses. second of all i would recognize exactly what u.s. pakistani relationship has become which is a transaction of a relationship. i would look at what we can expect from the pakistan government realizing the politics playing out domestically pakistan are complicated between the islamist size and government and military and isi. he c expectations have to be low.

we have got to get more we have been proven time and time again. i would tie whatever aid money we are given to pakistan. access to a drone base keeping the supply lines working with counter-terrorism if that isn't going to work i am going to look for a new partner in the region. a counter terror effort pro bust we need to be collecting intelligence and forces capabilities and knock them down where they stand up. >> a political group called american left is bound and determined to put a third candidate on the ballot in the 2012 election. have you talked to any member of the organization? >> i haven't talked to any member of the organization. i am a republican i am running as a republican and i intend to be running as a republican. >> you have been very critical of president obama's policies.

you have been critical of mitt romney's what you call flip on issues not to say that's going to be the raise but can you flatly say right now and some say this is a game we play but can you flatly say you will support the republican nominee and you won't run as a dependent. >> i am running as a republican. that's why i am today and that's where i fully expect to be at the race. >> i am running as a republican is not a denial, sir. can you flatly state you are going to support the republican nominee? >> i am running as a republican i will support the republican nominee. i stated that before i will state it again for you. >> thank you for talking with us. safe travels on the campaign trail. >> thank you chris. i appreciate that. >> up next the super committee fails to make a deal to reduce

the nation's debt. will congress extend the payroll tax cut and unemployment insurance. we will get answers from two senate leaders after the break. [ male announcer ] if you think tylenol is the pain reliever orthopedic doctors recommend most for arthritis pain, think again. and take aleve. it's the one doctors recommend most for arthritis pain... two pills can last all day. ♪

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>> with the super committee failing to reduce the debt a number of spendi cuts and tax increases are set to take effect unless congress acts. joining us are second rank pg leaders in the second. dick durbin in chicago shiiand in dallas. we were talking the foreign policy issue i was discussing

with governor huntsman. that is the lathes brief in relations to pakistan as you both know in response to the killing of at least 2 dozen pakistani soldiers the pakistanis say the u.s. and nato has to stop drone operations. they are cutting off the two major supply roots for nato in afghanistan. let me start with you, what would you do about it? >> there is a lot of diplomacy had that has to occur. they need to understand our support financially is dependent upon their support for us. it is not something you can cut off all assistance. about two weeks before 9-11, 2001 i was having a intelligence committee to pakistan and visiting with the president. because we cut off relations before military support before

that the officer core that was coming up behind him had not educated in great britain and the united states as he had fellow senior officers. he was concerned about the muslim influence radical influence as they were coming up the ranks. he said that was a mistake a couple weeks after we got back. we help to do restore the military contacts. it is important to maintain the relationship for the long hall. >> what should we do? >> deeply satened t-- saddened the pakistani soldiers were killed by nato drones. we have expressed those condolences. image how we would feel if it was american forces killed by pakistani forces. it -- as difficult it is to find our way through the incompetence and corruption in afghanistan

our soldiers are caught in the middle of it. it is aven argument of moving us toward when our soldiers come home. we to leave it to afghan forces to meet the challenge and bring american forces home. let's go back to the debt and let's start with the items that have run out at the end of this year not 2012. let's take a look at them. first payroll tax cut costs 20 billion to extend a family will pay 1,000 dollars more. they will extend the payroll tax cut up this week. you will pay for it that may be

a smart political move but no telling if it will pass. >> you say 1,000 dollars 15,000 for the average family. president obama has asked for families will see an increase in taxes. these are lower middle income families. those at the top who have enjoyed tax cuts who have been generous for a long period of time can enjoy a slight increase in their tax burden so we don't add to the deficit. let's help the working families struggling paycheck to paycheck and ask those to pay a small percentage. >> senator republicans are demanding that's the reason the em datz are putting up and demanding an extension be paid for. you haven't done that in the past for the bush tax cuts.

why the difference between paying for one not paying for the other. what do you think are the chance force a deal before the end of this year. because it runs out at the end of the year to expetend the payroll taxes. >> you have to deal with the unemployment insurance payroll taxes and a lot of other items before the end of the year. the problem is the payroll tax doesn't gee into general revenue it sports social security. you can't have a secure social security. by taxing people you put off economic recovery and john creation. that is what the democratic people would do you acknowledge the ones who create the jobs creating economic difficulty. that would be the mistake. >> if i may just to cut this short are you saying no deal on extending payroll tax cuts?

>> the payroll tax holiday has not stimulated job creation. we don't think that is a good way to do it. before the end of the year we will have discussions about what we are going to do about all of these different programs. >> briefly senator durbin. >> i can't believe that. at a time when working families in this country are struggling paycheck to paycheck to buy things in our economy to create wealth and profitability and more jobs that the republican position is they will raise the payroll tax on working families i think that defies logic. what we should do is help these working families struggle through. they have to show leadership on this and republicans are walking away from lower to middle income families they impose a small small tax of the wealthy he is people in america. we can save social security. i agree with john kyle. let's pay for the payroll tax

cut by imposing a slight increase in taxes on the wealthyest people and replenish the social security cuts. >> i want to give you a chance to ask you to respond to that. economists say the real impact we don't expend the payroll tax with unemployment insurance. they estimate both are not january 1st failure to extend the tax cut and unemployment will cut 1 percent next year and cost more than half a million jobs. you questioned that but according to the economists they could throw the country back into recession. >> chris i don't know who those recon mists are. i read from respected economist that said that isn't true. when you are in a recession you are in difficult economic times

as we are you need to put people back to work as well as dealing with our deficit how do you do that? you do it by enabling the economy to grow. the best way to hurt economic growth is i am pores mortgage taxes on those doing hiring. as a result republicans said don't raise the existing tax rates on those who do hiring. instead hoip we can get into this he can employer the kinds of things we did to reform the tax code eliminate deductions or reduce significantly on the upper income taxpayers so they end up paying more but not through a tax increase on the rate either on capitol gains v dividends. >> you have the short term problem you have to deal with the payroll tax cut, unemployment insurance minimum tax cuts you have the long-term debt issue. i would like to briefly address

that. the president basically walked away from had the right idea. you were a member of that you voted for it. they said lower the rates dramatically. eliminate the tax expenditure and we will contribute that to the the debt reduction. the flip side of that is we want to see a half 500 million on entitlement reform. raising elibility ages. would you go for that again? >> that is the basic guideline to reducing the stable growth situation creating jobs now and reducing long-term deficit to paraphrase the colleagues. i worked with them on the

committee and what was proposed by the republicans on the super committee was not even close to the bowl simpson proposal. now let's do this in a thoughtful way that creates jobs now does not handicap or damage medicare and social security in the long run and create an approach that is balanced. we didn't get that out of the super committee. >> one of the big hang-ups of the bush katax cuts they forgot about that. they said if we are going to lower all of the rates top rate down to 28 percent are you willing to say forget about ending the bush tax cuts will lower rates dramatically if we have the tax expenditures? >> you have to look at it in the

tax cuts. i am not dodging your question. they are overly generous to the higher tax cuts americans. we don't want to disadvantage middle class families. let us put tax reform together that gives us a fighting chance. there was a commitment in the game of 6 a commitment to simpson to at least maintain improving the progress in the tax code. that means giving working families a chance. >> i want to ask you a slightly different way, because there is a narrative out there that you and other members, other republicans on the super committee were scared off an outside player that's glover norfolk and anti tax pledge that you wouldn't give on the bush tax cuts. a couple weeks ago he said he had had to yank you into line. i want to put up what he said.

i repeat it's what he says. i called what do you say? what do you mean? how can we work together on this? adopting the tone of the people. one is that story true and are you and other republicans? >> the answer is absolutely not. the fact that the plan says all 6 of us would offer is specifically raised tax revenues. it would have raised 250 billion more than tax reform reduce the rate. grover is not happy with that. this is the point. the old simpson commission said raise whatever revenue you can to reduce lates. we did that in the plan by reducing the value of all of

these tax credits and deductions the kind of thing you spoke of. it is by the congressional budget office. it was raised by 15 percentage points. what you can't do is raise more than 250 billion that's why that was the amount that we raised above that necessary to reduce the taxes. >> we have two minutes left. awful lot of people say we talk about grover norquist. president obama was missing in action during the key negotiations here. wasn't that a failure in leadership by his part? >> not at all. those of us who know the facts realize vice president biden made an overture which can dorr walked out on. >> i am talking about last

summer. >> the point is it was a congressional under taking that if president obama weighed in it would become an issue. they don't want to give the president any credit for achieving things. we know where the president stands. he wants substantial deficit reduction but first get america back to work. >> we have to leave it there. thank you both so much for coming in. we will stay on top of this story. it isn't going away. >> newt gingrich takes the lead in the polls and creates a problem for himself on immigration. sunday's panel assesses the damage and where things stand in iowa when we come back. so humpty dumpty had a...

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national political correspondent for the new york times. gingrich favors allowing some long time law abiding illegals to have some legal status and not to split up families. he has for a long time but frankly now that he is a frontrunner people are paying attention. huge damage did he do with immigration? hasn >> republicans were talking about that exclusively. many people think he did damage to himself. other more long time supporters will say look he can do a better job explaining his position than governor ber governor perry. it is not apples to apples here comparing his comments.

he needs to get to iowa and explain this the bigger problem is he does not have an organization. people watch him and think he is a great debater but he is operating without much support around him in a case like this the romney campaign will be sure to hit him on direct mail. we will see how he responds to it. >> let me ask you about this bill. it is a major blunder. mitt romney said had this idea given legal status a long time law abiding immigrants is amnesty. michelle bachmann says it shows that gingrich is the most liberal candidate. they think it is a weakness.

>> he is in exact position four weeks ago. exec plain why he is wrong he knew that he was doing. he went out of his way to show he does not want to run as a presidential nominee of a party that looks ridiculous honestly on the immigration issue. michelle bachmann is trying to stay alive in iowa. is her position we are going to spend back 11 million people who this country who have been here for 25, 25 years who's kids are citizens et cetera. i don't believe romney believes that. i don't believe he believes that a minute. >> there are a lot of times they do believe things but they say it it is politically convenient. the question is to a certain

degree not that it is good policy but will it hurt gingrich? >> it shows a certain amount of confidence he was willing to take it on. i admire him for saying what he believes to be the right policy on this issue. esz doing them a favor to bring it to a more favorable position as in terms of actually being serious. >> you use the term politically inconvenient. it has shown the distance we have traveled. it stakes out way back when to spoushder spoushdled become r bush's theory. one of karl rove's big projects. we see what happens when it runs up against an iowa caucus.

it wasn't the iowa caucus. it went nowhere. republicans opposed him right then. >> this is not going to be a major issue for newt. i think the immigration policy is something he has been laying out for over a year. they have responded favorly to it. in the coming days you will see new offices opening up. he has a larger operation than any candidate. at the end of the day it looks clearly now like the republican contest going to come down to a battle between mitt romney and newt gingrich. as a republican i feel good about that. i feel proud that these are the two people that have interesting and extensive backgrounds very different backgrounds. those bring much more experience to this race and potentially to the job that president obama has

for 2008 when he was elected. it would bring better policies. let's switch topics. now that i think about it the endorsement this morning william low was the publisher had enormous influence. you can tell me how much influence does it have? >> we always knew they wouldn't indorrs romney. it would be every day against him. it is great for newt gingrich. it separates him from the rest of the field. it looks like it is narrowing to romney gingrich fight. what i am watching for is when uz d the romney campaign engage him. they ignored it for months they didn't think it would come to this.

it is important for him in the short term. elections don't >> publishers say we don't endorse one day we endorse every day. day after day between now and january 10th they will be pushing newt gingrich how big a deal do you think it is in new hampshire? >> they need to decide to make up their own minds. they decided they liked herman cane for a while. a lot of republican voters decided for now they are open to the case for newt gingrich. some decided they prefer newt gingrich. talking to him personally. they have said coming through out they don't know who they are going to vote for.

there will be more debates. they will extend the attacks ads against romney but he will be able to make his case. there are legitimate criticisms of gingrich. the thought that he is going to attack him from the right and conservative i think that will not be credible. >> we should point out one of debates phil was talking about is the fox debate. it look the last before the iowa caucuses january 3rdrd. when we come back a super failure as legislative gridlock rules the day in washington. [ morgan ] the super bowl.

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dote to >> raise taxes on working americans put the country before party. put money back in the pockets of working families. >> to this day they have never gifrn us their proposal for the kind of structural reforms that we need to bring the entitlement programs under control. >> president obama arguing to extend the payroll tax cut. gop super as both sides try to frame the debateing in into the 2012 election. let's start with the immediate problem what runs out at the end of this year and what congress is or isn't going to do about extending the tax cut unemployment insurance benefits. i was surprised that senator kie lan is as tough as he was. seems to indicate he is going to oppose extending the payroll tax

cut. you see dirk dur pan pounce on that point. i do think the politics favor president obama and the democrats. they want to give the average guy 1 is thousand dollars republicans don't. in politics it is generally safer on the side of giving money away not with standing the fact that we have this big deficit. the democrats from republicans into being looking like they are against a tax cut. john kyle's explanation is we don't want to put the tax cuts on job kree tierts. i think that creates a dilemma for the republicans. i will be interested to see if it holds up. it was the most definitive than we saw so far. >> do the white house and

democrats -- i agree dirk durban he thought it was a political ad vantage for him to portray to republicans as fighting for the push tax cuts for the wealthy but willing to let the tax cuts for the middle class disappear. is that a problem? >> i think it is what we have seen president obama and democrats do now for many months in particular with the super committee the president of the united states has put no serious plan on the table for dealing with entitlement which is the biggest challenge we face economically right now. the president of the united states i don't think made a phone call to people on the super committee. i talked to one member who reached out numerous times to the white house to say we want a deal. we need a deal and was given the back of his hand. there was no effort here. the president seems to have made the calculation he is going to

let the next 13 months of the american economy slide. >> i am not asking to be cynical i am asking will it work? >> you have a different atmospherement people understand the crisis we are facing. you have a president of the united states who walked away refusing to deal with this really matters. it is difficult to see they are going to buy into it and give them another term. what i am concerned about is what happens in the next 13 months and whether or not we can stop the slide we are seeing in the economy. >> this is, you can argue with principles and cynical it depends on your political view. the white house has presented vir yauss jobs bills let the republicans put them down. it looks like they are going to put up he extending the payroll tax cut and letting republicans

kill that. who has the political high ground? >> political high ground is to be determined. that is what it was fought over. we now know this frames the argument very tightly for the president and for republicans. but it trickles down to a house and senate race. democrats feel they are in a booed position. they boxed republicans in. see what happens this week. senator kyle was speaking for himself or speaking for all of the republicans. he didn't say a we as he said earlier. that will be interesting to see. >> i don't think he would have gotten out there if he wasn't along with him on that. >> it is a vacation. >> it may have been the turkey talking. >> democrats think they have the high grown. washington is the big loser in all of this.

they think the super committee congress, the president can't do anything. >> it is mucked up. >> thank you for saying it that way. the republicans over the democrats that is the automatic pressure if they don't do anything about this 1.2 trillion in deficit reduction by a year from now the end of december 2012 the automatic trigger kicks in in cuts to the pentagon pending would threaten our i would veto any measure that does this. you have to find 1.2 trillion in deficit reduction is that a problem for the democrats that they are in a position of seem to go jeopardize the economy. >> it will encapsulate and

embody the 45 million in pentagon cuts or physical year 2013 which is a massive one year slash in the budget. are they going to show the cuts in 2012 or say they don't need to do this. they will not go the way john kyle predicted. they will not cast a party line vote for raising taxes on working americans. there is no chance of that happening. >> i don't think senate republicans will want to do it. they may split on the issue. >> i don't believe the republican party will vote to raise taxes. >> let me bring one more thing to this the support of the

country or faith will be much lower. now you have the possibility of 14 points more does it increase the viability? i talked about this with the third party candidate. >> i have to say i have been skeptical of nartds i would be skeptical of one by john huntsman because he is dynamic charismatic type of person. if you wanted to have a third party takeoff you would need a headliner somebody like ross perot who made a splash last time it was tried. i don't see a leader who was headed up. >> thank you panel. see you next week. don't forget to check out panel plus where they pick up on a discussion about our web site fox news sunday.com. post a video before noon eastern time. up next power player of the

week. >>

>> chris: with thanksgiving over now christmas shopping season gets serious. >> with tfhanksgiving over now christmas season gets serious. loves to give and severe. once again here is our power player of the week. >> i am a de siren at heart. it was just something that

seemed like an easy thing for me to do. >> ann is talking about the beautiful jewelry she is created over the last two decades celebrating the american eagle and our flag. she calls it wearable history. what is remarkable is how often pins and necklace have become a part of history. >> i don't realize until i see your show. >> madam albright wore the eagle pin. hillary clinton defended her husband in the lewinsky scandal she wore a similar one. >> laura bush wore her necklace at a white house dinner. sarah palin wore hers. >> i started right next to a washer and drier. >> they came to washington in

the 60s. lyndon johnson named him chief of protocol. >> it's a fairy tale i was 31 years old he was 35. we had the responsibility to the diplomatic core. >> they were one of the golden couples when 98 when their 27-year-old son tommy was hit and killed by a car. she turned to making jewelry as a kind of grief therapy. >> i would work with beads and patterns long through the night. i would shut out the rest of the world. >> friends started buying items out of her home. in 2001 she opened it tour. >> how much does this cost? >> the stirlg silver version costs $150. >> you can get a pin very much

like clinton and first lady laura bush for $150? >> yup. absolutely. >> she has a special feeling for the military. >> the day we were there she and a granddaughter were helping a member of the fires. >> what did you fly? >> f-15's. >> she is created special pins for each branch of the armed services. she never planned to do an american collection it just worked out that way. >> i thought this is what i want to do. i tell the story of america in silver and gold. >> if you are interested in finding out what she has for christmas go to her web site ann ham.com. have a great week. see you next fox news sunday. {off-lineñ]