hudson and plus can either party compromise and keep hard core supporters on board, neera tannen, stephen moore of the "wall street journal" and jackie calmes of the "new york times" and our own dana bash. you knows what happens when sis fuss rolls that boulder to the top of the hill, it rolls back down, a piece of greek mythology that brings to us the reality of the u.s. congress. it got a deal that raises taxes on the upper brackets and prevents for now huge spending cuts. it's moved on to the issue of avoiding a u.s. default. >> the president needs to show up early this time. >> republicans say they are done raising taxes. they want the president to agree to spending cuts in exchange for raising the amount of money the u.s. treasury is allowed to borrow. the president wants the debt ceiling raised without debate. but be serious, this is washington. >> any future budget agreements must balance the need for thoughtful spending reductions, with revenue from the wealthiest among us and closing wasteful tax loopholes. >> joining me now to tell us where this is all headed, the senate's number two

let's ask stephen moore, how bad is it that we don't have a budget and who do you hold responsible? >> it's dysfunctional, but look, let's be fair and i am a republican. i'll admit that. when you talk about not passing a budget, ali, you should let your viewers know it's been 1400 days since the democrats under harry reid have passed a budget. they haven't done their constitutional obligation of passing a budget every year. you may or may not like paul ryan's budget. i know there's are things that you've picked apart. but at least the republicans have passed a budget in the house. are both sides responsible for not passing a budget, no, the democrats are not. and the president, every year submits a budget to congress, he will submit one in the weeks ahead. when he submitted his last budget before the democratic congress and they voted on it, that was defeated 97-0. so one of the problems here, i think what republicans are going to say going forward, mr. president, you and harry reid go forward. we've passed three budgets, we've done one every year. it's time to show your hand and te

bill: what does it do to uncertainty for business plans, stephen moore?is is one of the biggest problems of all, bill. i saw a rasmussen poll a couple weeks ago, showed something like 75 to 80% of small businesses don't understand this bill. they don't understand how it works. they're completely confused how the health care system is going to affect their bottom line. one of the things you have to remember, all of these popular features about the bill, 26-year-olds can get insurance under their parents health care system, free birth control, all of these other kinds of things, those actually, somebody has to pay for that, bill, right? there is no free lunch here. that is what we're seeing in the higher premium costs. what i think it will mean, people will lose their health insurance. they will not gain it. bill: i hope you're wrong about that. matt, i will of about you the last word because what the law talks about in some cases to have a federal review that controls the rate of increase. some states that is in place. other states it is not. and what the

than twenty eighteen he also spoke of the tremendous disadvantage for britain were to leave but stephen moore city of london spokesman for the u.k. independence party i spoke to a lot he says that's simply not true. they said that we would be in huge problems if we came out of the they said that business would not actually invest in the u.k. unless we join the euro this isn't going to happen and we're not going to hit believe the false promises and the false concerns that european politicians and big businesses are actually going to throw as i mean there's an unholy alliance that seems to be forming between old conservatives with large corporations with members of the labor party who will want to frighten the people of this country to say that they can't survive on their own but we're still the set for largest trading nation in the world so yes the public in this country know that there is a problem out there they understand the arguments and they're not going to be fooled this time by a political elite. europe's leaders have begun reacting to the prime minister's speech with warnings of wors

world will be talking a lot more about this over the next year or two thank you very much indeed stephen moore city of london spokesman for the u.k. independence party great to hear thoughts thank you great great thank you very much the result of reckless politics all an unavoidable onslaught u.s. secretary of state hillary clinton faces need to listen in on what she thinks led to a deadly attack on an american consulate in libya and garvey last year. that's still to come but first jordanians have been heading to the polls today after the king announced early parliamentary elections spurred into action by two years of arab spring protests but the chorus of critical voices as the country is still as far from any real change as it was back in two thousand and eleven and they claim that the government is bound to rig the ballot kabanov is in jordan. many here say that the reforms simply are too few and too late now there have been some efforts for example to make the elections more open this is the first time that outside election monitors are going to be observing the vote here but at the end of

we are back with jackie calls, neera tanden, stephen moore and dana bash, happiest guy on the hill, rightmean, first of all, he flew in there like superman. it was dark, and we were going to go over the fiscal cliff, and he and senator mcconnell saved the day. so it was a good week for him. >> gas a very good week for joe biden. also very interesting because you saw the -- that old triangulation happening a little bit that dick morris term from the '90s because along the way, as things were getting very intense and as harry reid was not as involved and it became a biden/mcdonnel deal, we as those covering, it really got a couple of sort of selective leaks about what they were talking about, not to pressure mcconnell but democrats trying to pressure biden. they were concerned, back to the earlier conversations, that biden was selling out democrats too much on some key issues. at the end of the day the fact you had only three democrats voting against it in the senate and only a handful of democrats even though there's like 70 members of the progressive caucus only a handful voted against it

stephen moore, the president doesn't believe there's a problem.hink in your opinion that the government believes the president specifically doesn't believe we have a spending problem? >> the president does need to wake up and assess his surroundings. we are fixing to have the inauguration in a week or so. the debt will stand at a little other 16 trillion. by the time the next permit is inaugurated, the national debt will be $22 trillion. who cannot say there's a serious problem with being awash in red ink, and it threatens the fabric of our republic. >> i don't disagree. yesterday the nominee to replace timothy geithner is jack lew. keep in mind he's problem the professor and frankenstein that created the monster known as the current budget, even for bush when i look at mr. lew and the comments made by stephen moore regarding the president, this is a duo that i don't think will make the job of tackling spending any easier. am i missing something, congressman? >> no, if i read woodward's book correctly, wasn't it jack leb who was the architects of

stuart: that was stephen moore in our last hour.view of the year so far with speaker boehner who told him that president obama will not lower spending. he says we do not have a spending problem. by the way, the cbo says we're on track for another trillion dollars deficit this year. nicole's got some breaking news on a stock. the stock is up, why? nicole: more interest in herbal life. third point declares a stake of 8.2%. this is a passive stake. we saw the stock pop today. we saw it hit circuit breakers to the upside, halted, reopened, still showing gains up 3 1/2%. stuart: nicole, thank you. >>> the main driver of our current financial mess is ideology, leftist ideology, tax more, spend more, ignore the debt. it's a real mess. but there is another driver, another issue that really hurts the finances of nations worldwide. here's my take on demographics. in short the problem is this, in the developed world, populations are actually shrinking and they are aging fast. that means there are more retired people living on the pension and h

stephen moore, tell me, bobby jindal in louisiana, what his idea is, that is helping to drive this headlinel, bill, he wants to make louisiana one of those, join the ranks of those nine states across the united states that don't have an income tax. those are states like texas and florida and tennessee and new hampshire and washington, navy. they're doing develop economically much better. art laffer who you have on the show a lot and we do a study, called rich states, poor states we find significant growth in those that don't have income taxes. texas isp booming. florida is doing well, tennessee. louisiana wants to join the states to get more job and higher income jobs. bill: bobby jindal wants to get in on the action? >> yeah. bill: what is the effect when states cut taxes like that, from a financial perspective. >> from a financial perspective it is great. art laffer does a lot of studies that show it does well for the states. when you cut personal and corporate tax you have incentive for corporations to come into the state. if more corporations are coming into the state, that means more j

stephen moore has a profile of house speaker john boehner in " the wall street journal." he writes -- randy, michigan, democrat. should a debt limit increase be tied to a cut in spending? caller: the debate is to be contingents -- we should have this as a debate for future spending. you cannot not pay the bills you have ari spent. leaready spent. if you want to go forward with a good debate and one that maybe we gentlemen, we will do that. tying it to what we have already paid is silly. it is not sound. these gentlemen have been on a school board. it is nice to have your ideas. and you look at the facts, you do not get to play. facts are facts. it is fine to do that for the feature. we do not have a government like one in my house. i do not have 100,000 people added every month to my home ike we do by people being born. there is a lot of leeway. >> from twitter -- we heard from the house minority leader. her picture is in the front page of the washington time with two stories about congress and the economy. charlie, florida, republican. caller: it is a simple problem. eve

joining us stephen moore, senior writer for "wall street journal" happy new year. see you. >> you too, rick. rick: what do you think?. >> you ask a question what is in the bill. a lot of members don't know. rick: they're probably reing it right now. >> i was up to the wee hours of the morning trying to read the 150 page bill. amazing little items. tax give aways for nascar, for the wind industry, for biodiesel, for movie producers. those are small items. but the big items are the taxes that will affect 100 million americans. and you know, there were a lot of rate changes everything from the capital gains rate to the estate tax, to the dividend tax and of course personal income, tax rates. rick: was there, anything, steve, that jumped out at you specifically when you were reading it this morning you thought, gee, i can't believe the be republicans went for that, or i can't believe the democrats agreed to do that? >> a couple things. one is, you heard earlier from the sound bites you played from some of the republicans that they are still extremely frustrated, rick,