>> "inside washington" is brought you in part by thehe american federation of government employees, proud to make america work. for more informati about afge and membership, visit afge.org. >> the country is facing a cliff, and we are concerned, and not want to fall off the edge. >> this week on "inside unfinished business of the 112th congress. rate bounces up. on mitt romney's trip abroad. >> nation has the capacity to city, and capital is israel's's capital. >> in poland, a boost from a

legendary labor leader. gay marrie have to do with fried chicken? >> chick-fil-a's values are not chicago values. > and the chuhill bust per. wins anp apology frfrom the white house. captioned by the tional captioning institute --www.ncicap.org-- it ia happy me in in august. is around 100dex degree our pedestrians looked like boiled pam's. the unemployment rate jumped to month, and as they vacation,ive week congress pledged to for the goodrences of the country. >> americans want to focus on jobs, not raising taxe

>> you have to give republicans credit. they arere very clear about ther agenda. >> take a look at this politico -- "congress takes a five-week summer break as from the 2011 run budget control act." expire,ush tax cuts believe kick the --nomy back into reception recession, i should say. increased taxes, huge cuts in spending, defense around washington are nervous. they are talking about falling in nuary.f democrats and republicans are -- itng the unthiabable to allow theable cuts to expire for the shock value, eracting concessions from both sides. where are these people had, ?van >> over the cliff. ihey have it

them. it does not meaean that the into a will be thrownwn away.ion right use time in january and february and march to get some kind of deal. mark, 8.3% unemployment. >> it is the best jobs report february, with 163,000 jobs -- 100,000 had been predicted. the reality is that the only that anybody is looking action right t now is reserve.al not the congress, because there is just loggerheads. >> colby >> well, you expect them to take time off. they have to go back and inpaign for election november. is not a disaster. they also plan to come back the elections to address the problems that they are to januaryn the roaoad tnk we will roll off the bank knowause the consequences of that.

businesses hate uncertainty, charles. >> uncertainty and terrible numbers. "the new yorkimes" quoted the credit isset at to thesponse unemployment of this, saying worstthis is the wr recovery ever, including in n te in the e great depression. if that does not scare you, you attention. i think we haveompounded the by the e gridlock in washington, and the fact that notl election day, we are going know which way we're headed. but the underlying economy is terribly weak, the recovery has stalled, and this administratitn what to do about . ev if the fed acteded, i.t. is pushing on a string. interest rates are essentially zero. you are you go when already at zero? they cannot even pass a farm laden thing.st porork-

the idea that they are going to do with defense cuts and taxes they are going over the cliff. the issue is how quickly they back.imb bad news does not start right away. for the some time going o over the cliff to be e felt. you had two or three months in the winter to solve the problem. >> congressional budget office that if congress does ,ot co up with a solution, to 0.5% nextall year. >> that is it they don't do anything for months. >> but that is my point. ovethell avoid going cliff. the smart money is that they will come back after the and address the problems. >> wait a minute, there is the

the six-month agreement to extendhis. be blunt about it, the majority of bobo partyty leaderships voted for this cuts.ter, the automatic neither party gets a partin it.ntage on i don't think that there's any question that what we're looking an election that is ining determine where we are headed in this country. tax cu to expire. that enables republicans to vote a tax increase without, in fact, alienating grover norquist. that is the cute little postscript. >> let's go back to the economy quickly. 8.3% unemployment rate is not surprising. reflects some things that .appened in the labor market

those people who were on strike were not counted. happening on the policy growth is important, significant, and economists saying this is a sign of something good. >> but it is not, because it is only. increase, 163,000, which is less than whwhat you need to in unemployment. about 250,000. problem is not the fluctuations in b hiring and firing month to month. it is the fact that you have growth of gdp, the most anemic, and with that, you decreasessibly have a unemployment. the economy is stuck. chopped liver.t charles, cheer up. the first time i saw fios, it was absolutely amazing.

for years and years we had to put up with cable. once we got fios, it was like somebody like took our computer, shook all the junk out of it. [ male announcer ] don't settle for the same old cable technology. now you can move up to verizon fios witho annual contract required for just $99.99 a month for a year, you'll get a fios triple play and our whole home solution -- including a high speed wireless router, plus a newulti room dvr an and hd set top box free for 6 months. with fios the internet was five jabillion times faster. fios gives me way more for my money. [ male announcer ] switch to fios for just $99.99 a month for one year with no annual contract and get our whole home solution. hurry, upgrade to fios. no annual contract means now w there's no reason to wa.

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>> what about your gaffes?s? >> show some respect. >> we have not add another chance to ask him questions. kiss my [bleep] >> that is one way to deal with the press. of our vieiewers think it is thbest way. mitt romney was endorsed by lech walesa, who led the great union and later became president. the dustup between rick on the trip,eporters headlines. romney angered saying thatns by the difrencees all in the world. charles, on a scale of one to 10 -- i read your columumn -- how o think that trip went? look, the london part he blew

the unforced error on the well in, but he did israel, and this idea that he gaffe with the difference between israel and its is culture -- the man who attacked him as racist is erekat, last known for blood libel of which never still lives in infamy he is not exactly a great source. secondly, what romney said about a repeat of what is in the u.n. human rights byelopment report, written in theholars, published un, which said that culture is the soul of development. gaffe. new, non a >> but the whole idea of a -- michael kinsley said a gaffe is when a

tells the truth. it is obviously cultural problems that affect the of the palestinians. london wasus that not ready for the lyrics. this is a confected a thing that p press gets excited about, but i don't think voters give a damn. >> 1 to 10, mark? >> 4, and that is from talking to t romomney people, who say it disaster. sheldon adelson, his billionaire trip totor, on an ego jerusalem, wanted to have a fundraiser there. never meventioned the peace thewo states. always hear charles approvinggly quoted a u.n. document. thpalestinians a among the educated and most

entrepreneurial of the people en that entire region. mitt romney -- the reason the upset is in the entire he had tan thre press.ns from the barack obama, a rookie when he the trip in 2008, at a cference every place him at. >> -- every place he went. >> the press hates to be ignored. >> we deserve attention, and when we don't get it, we about it. grade hisrip.ot went to israel and said that jerusalem should be the capital. it is a question that the u.s. has always fudge on. the use of the word "culture" good to hear people after the his remarks to explain what he ant, but the word is loaded. i have heard it before to

d differences between african-americans and whites. it can have some very nasty implications. let me finish, please. that is not what the romney he meant, and i explanation, and i read as well.ent he mean at the time? know.t term and someaded people took it that way. >> the worst thing for romney sheheon adelson at side all the time. a huge and donor who is buying ads.hese unseemly. >> when romney talk about and it was was not cited a book by an at harvardstorian who wrote this book where he culture as the ultimate elelement. the reason i quoted the un because that is the last place that you woulhave -- a big rept chidingg

arabs onn corruption and the --k of women's rights >> he also cid a book by dan senor where he talked about why israel was a big success. cite culture. cited conscription and immigration. the tax cuts he is proposing? the brookings tax policy center those would increase $360nment revenue by onlion and put the burden the middle and lower classes. >> here is a totally bogus obama attacking romney basically for being for because if you are , you to lower tax rates loopholes.se loopholes,e obviously, taxes are going to go up on other people. for obama to turn around and

on romneyan attack for raising taxes on the middle class is outrageous. >> obama is quouoting the report, which is a respected - an organition, the tax policy center, which was by mitt romney as recently as last fall. for romney has plledged general tax reform. everybody is for general tax but against specific loopholes..ax he has pledged furthero lower taxes on the richest people of -- the top 5%, and deep capital gains and dividends tax on unearned income lower where do you get the money cut all the appropriations and all the ?rograms question.e it going to come from? not take any more out of the wealthy. mark, obama is at least

for tax reform, and me a cheap shot to at romney, he is raising taxesn the middle class. r referring to is that romney is saying that if you taxes in little but, you loopholes, and that will raise taxes. stop the presses, ids going to raise taxes on everybody. >> but romney did not say we would do something in thehe hope that. romney promised to reduce tax rates by 20%, end tax, all theins not in the warring revenue affecting revenue. what is going to happen? >> every economist who has says th youis lower tax rates in all but a close loopholes -- >> he doesn't say how. >> to be continued. if you've been successful, you didn't get there on your own.

if you've got a business, you didn't build that. somebody else made that happen. my fatr'hands didn't build this company. my hands didn't build this company. through hard work and a little bit of luck, we built this business. why are you demonizing us for it? it's time we had somebody who believes in us. someone who believes that achievemenent should be rewarded not punished. we need somebody who believes in america.

[ romney ] i'm mitt romney and i approve this message.

>> i am supporting mr. cathy and , a biblicical views, and not necessarily his views. g's views. >> wednesday, august 1, was the airst annual chick-k-fil- appreciation day. and huckabee ststarted it, responded in support of president and his stand against sasame-sex marriage. kiss day atame-sex a franchises. does chick-fil-a aboutiation day tell you the current state of our evan?cal conversation, >> how sillye can get, obviously. on somethingouch in america, which that you may have moral values, but if ople perceive

people are telling them how life, theyir resented. they flashback. i support -- they lash back. i support the marriage, but i understand how people feel that washington or the elites are to live, they how resent that. >> you mean, when a big city mayorsrs saying we don't want in our city, they resent t that? >> a movement led by the mayor boston, and picked up by mr. emuel, mayor of chicago. who else? >> san francisco, , mayor of the district of columbia -- "hate chicken." >> it is one thing to see boycott an institution but to see the sanctiod a boycott is a little t different. the last one i rememr is tom -- wt is the fellow's name who owned a domino's pizza?

it wasn't tom donahue. ohoh, sure. he was active in the p pro-life movement. >> what about the gay marriage the demococratic platform? is that a good idea? where are the gay votergoing to go? >> that is the decision of the president and vice president -- n is the n namyou wanteded. >> when i go to a store, i do owner's views the the health care act or drilling in the arctic. i want to do is go to starbucks and get a cup of coffee. if i hear that the owner of different view, what, do i not go there anymore? i understand the pain that is caused people who believe in

hear themarriage to owner of chick-fil-a say what he said, but i also understanthe we have as far going after individuals because of when all you want to sandwich.a chicken >> we heard one woman say that i all ongree with him at but i like the charles. >> i think the neglected victims here are the french agains -- chickens. what is so hypocritical is that is the thought crime of the century, a demonstration of bigotry, if you oppose gay marriage. ago, barack obama marriage.e -- gay marriage. mean he was a bit until six months ago? rahm emanuel, who says it is against chicago values if you marriage -hehe

was the chief of staff to barack obama opposing gay marriage. was he a bigot? ridiculous and incredibly hypocritical. i hate getting less. but i love getting more.

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>> if you chececked the white on tuesday of this week, you would have seemed dan pfeiffer's apologyo charles krauthammer are on the matter of churchill bust. was is your first apology from the whwhite house? i thi it is the first in history of the world, unless state.a rogue i wrote something innocuous last that e e bust of removed from the house when obamaame into the office. hours, on the winehouse web site, there is an attack saying that i am a pdling rumors and essentially vehemently calling me a liar. he says i am a liar because the

boss is in the white house and is in redents -- bust house and in the residence. british embassy, and they say that i was right, is in the residence of the british ambassador. pfeiffer showed on the ock to convince people i was lie was something that had for lyndon johnson. >> i think that dan pfeiffer is person, one of washingtonople in capable of a public apology. lncolnpned to the bust at 10 downing? >> what does this tell you about organization at the white house? >> they are scared of charles. >>t ishe rapid response, we to go slam theright away. evan is absolutely right. >> i have a bust of charles in

office and nobody is getting bad. >> oh, you guys. >> last word. see you next week. >> "inside washington" is brought you in part by the american federation of government employees, proud to make america work. for more information about afge and membership, visit afge.org. the first time i saw fios, it was absolutely amazing. for years and years we had to put up with cable. once we got fios, it was lis somebody like took our computer, shook all the junk out of it. [ male announcer ] don't settle fo the same old cable technology. now you can move up to verizon fios with no annual contrtract required for just $99.99 a month for a year, you'll get a fios triple play and our whole home solution -- including a high speed wireless router, plus a new multi room dvr and hd set top box free for 6 months.

with fios the internet was five jabillion times faster. fios gives me way more for my money. [ male announcer ] switch to fios for just $99.9a month for one year with no annual contract and get our whole home solution. hurry, upgrade to fios. no annual contract means now there's no reason to wait. cable, hasta la vista! [ male announcer ] call 1.866.569.fios. that's 1.866.569.3467. contact the verizon center for customers with disabilities at 800-974-6006 tty/v. sayoodbye to ur old technology. welcome to life on fios. ♪