this taxmageddon should be priority number one to avoid destroying the economy. so far, congress is not nearly anywheres getting to it. plus tonight an obama administration official pleads the fifth amendment in front of congress. and he's still on the payroll. this gsa official wouldn't tell congress what happened to almost a million dollars in taxpayer money that reportedly went to an over-the-top conference full of mind readers and clowns. my special guest tonight oversight chairman congressman darrell issa. he's trying to get to the bottom of it all. we begin this overening with the breaking news. the vote in the buffett tax is under way and cnbc's eamon javers joins us. good evening, what can you tell us? >> good evening, larry. some strange circumstances on capitol hill this evening. they opened this vote. most of the senators voted and finished voting as much as a half an hour ago, but they've held the vote open. we are told they are waiting for as many as six senators who have still not voted yet. nonetheless, we are expecting here that those six senators

they call it taxmageddon.xpire all at once and hit americans on average $3800 each household if congress does not act. what about this in the future on this tax day? let's bring in the panel. steve hayes, for "weekly standard." a.b. stoddard associate editor of the hill. and syndicated columnist krout krout krout. a.b., there is a -- charles krauthammer. a.b., there is a lot pending. it doesn't seem like action prior to the election. >> right. >> this is truly everyone is calling at it fiscal storm. it's no joke. it is going to take place after the election. that is the problem. the same time that the tax cuts expire, the unemployment insurance, the medicare doc fix, all the things, the spending cuts that were decided by the debt deal of august of 2011 will also kick in. and part and republicans in particular seeking to stop or change these very deep pentagon pending cuts. two tracks of fighting. one on the tax policy and one on, you know, how to change the cuts that we already promised we would make. >> bret:

so far, look pretty good. >> let's talk about this taxmageddon.he year some half trillion dollars in tax breaks expire all at once, right? >> exactly. it will hit the average taxpayer increasing their tax bill by some $3800. all in all, that is about half a trillion dollars. what is going on is, like you said, the bush era tax cuts from 2001 and 2003 expire and among a couple of others. this is how you will probably be affected. the child tax credit will be cut in half. the marriage penalty returns and the dividend tax goes from 15% to just about 40%. a lot of senior citizens really rely on dividends to help them through their retirement years so increasing those attacks is not good. all this does is add uncertainty out there. not good news for businesses who would be maybe a little fearful to unleash their cash. maybe hire workers. and congress can ask to stop this so that is probably not very likely. >> think you're right. thank you. >> sure. >>> coming up next, if you saw it, you've got to admit it was pretty darned amazing f you didn't see, it

tax armageddon or taxmageddon.lected, will you roll up your sleeves and get involved in this debate about all these tax hikes coming as the tax cuts run off? and he said to me, yeah, i will get involved right away. so i thought that was quite interesting. but, no, i'm afraid i can't join you, brian. i don't want to raise the capital gains tax. this is not the time. i don't know if there's ever a time to raise the capital gains tax. >> and i agree with you on the tax issue as it is a tax issue. the point of my article, which i know you haven't had a chance to see because i just came out with it. it just got published literally like five minutes ago. was that the gop has sort of been pushed into a corner by the president very smartly politically to where they now don't control the national political agenda from a dialogue perspective. the president has successfully pushed them in the corner as being perceived as millionaire defenders. all while these other huge problems, you know, health care, the deficit, obesity, y

one word, taxmageddon. jim angle breaks it down.eting one group that he says is responsible for high gasoline prices. yes, will tell you who they are and what the president tends to do about them. more outrage of the lavish spending of your tax money by the general services administration. lawmakers are so upset about the gsa, we'll tell you what he is threatening to do in our program. this is what many of us in washington saw today. spectacular site over the nation's capital. we will tell you about it. plus, we have the late west the prostitution scandal involving the secret service. "special report" from washington starts at 6:00 eastern. now back to new york and "the five." ♪ ♪ >> dana: welcome back to "the five." end of an era today. space shuttle decided last summer it was decided that the government would no longer have the space shuttle program. so a 30-year run. it was great. what happened today, and you watched this so we'll get your reaction. space shuttle got a ride on 747 and did a fly over, over the potomac reagan airpo

i'm sensing it's taxmageddon. >> tell gretchen you didn't hear that. gretchen got it.ou did not get that. >> this was indiscernible. >> just mommy's little helper. >> he needs all the help he can get, gretchen. >> i don't know if it's a real word. >> great show. if you can, stick around and you can be in our studio audience for the next three hours. >> watching, of course. >> thanks,

some people call it taxmageddon such as arm m arm ma tkpwed armageddon. >> hr-plt entire tax code hasr to year lease and in some cases a month to month lease, which is no way to run a government. >> reporter: a large number of tax policies expire at the end of this year. all the extended bush cuts, including lower rates for all, things such as the expanded child tax credit, also the payroll tax cut and a host of other cuts meant to stimulate the economy, taking all of them away at once will increase taxes by $500 billion in one year, which could cripple and already weak economy. >> unemployment is going to go up. you're going to have probably an economy that is about 1 to 2 percentage points smaller than it otherwise would have been. and unemployment that is a full percentage point higher than it otherwise would have been because of these tax hikes. >> reporter: the increases would hit every taxpayer in the country with some 70% of the burden falling on those of low and middle income. of course congress would like tow avoid that, but with the uncertainties of the fall elections for bo

they want to show what they support, which is important for them, as they go to this taxmageddon. there is not much moving. it is almost may. we have until november for the elections. they have to fill the time, which is always interesting. on capitol hill, there are always interesting things to fill time with. that will be what we pay attention to. obviously, the election is huge. i would be interested to hear what cantor says about this. >> you had a story, "your congress at work." the story is the top of our home page. it is about the do-nothing congress. tell us what you said in the story. >> it is always interesting to take a step back and look at what congress is doing, as if you were not involved in the political process. if you looked at yesterday as an individual day out of a year, there were votes to honor roll alan berg -- to honor traul allengerg. there are striking a coin for jack nicklaus. opening federal land for hunting. remember, we have gas prices above $4, $15 trillion in debt, as a backdrop for those books. the senate is trying to reform the postal service. tha

they want to show what they support, which is important for them, as they go to this taxmageddon. there is not much moving. it is almost may. we have until november for the elections. they have to fill the time, which is always interesting. on capitol hill, there are always interesting things to fill time with. that will be what we pay attention to. obviously, the election is huge. i would be interested to hear what cantor says about this. >> you had a story, "your congress at work." the story is the top of our home page. it is about the do-nothing congress. tell us what you said in the story. >> it is always interesting to take a step back and look at what congress is doing, as if you were not involved in the political process. if you looked at yesterday as an individual day out of a year, there were votes to honor roll alan berg -- to honor raul allengerg. there are striking a coin for jack nicklaus. opening federal land for hunting. remember, we have gas prices above $4, $15 trillion in debt, as a backdrop for those books. the senate is trying to reform the postal service. that

why with taxmageddon around the coarch, are they dithering with these increases? the answer is simple: politics. president obama has read the polls. he knows he's in trouble. his approval rate something declining and he does not have a single positive accomplishment to run on for a second term. the $800 billion stimulus, a failed policy that has not kept the unemployment rate under 8%, obamacare rejected soundly by the american people, it might now be rejected by the supreme court, is one of the biggest unconstitutional boondoggles in our nation's hoart. what else does he have in absolutely nothing. his admirers moit not know it but mitt romney is in the cat bird seat. president obama is appealing to all he has left cloosh core, left-wing supporters, one step from an occupy wall street encarchlt who love class warfare. before the buffett rule, democrats proposed six different pieces of legislation that in one form or another raised taxes on millionaires. here they are. that's the third line in the chart. millionaires surtax hike bill. you notice, no hearings on th

host: secretary of the treasury tim geithner on "this week" talking about taxmageddon. we don't know how it is going to turn out yet. guest: these expiring provisions occur every single year. what has eventually happen is that on december 27, congress passed the extender bill. the irs is not able to program its computer for -- we are designing our forms and it is back in september or something. we will have the computer reprogrammed. we have seen that in every single filing season the past few years. the cost to the complexity delay and failure to get a consensus. host: david, independent line. caller: thank you for c-span. great show. in 2010, my wife and i did add direct transfer to ira money. it was a 1099-r form we sent in. i took direct distributions and they want me to pay taxes for it. it makes you wonder, how can they make a mistake like this? two questions -- how could a simple statement to this -- all on one second -- host: david, we got to go. guest: look at the 1099 and see if all the boxes were correctly checked. the irs and depends on t

they want to show what they support, which is important for them, as they go to this taxmageddon. there is not much moving. it is almost may. we have until november for the elections. they have to fill the time, which is always interesting. on capitol hill, there are always interesting things to fill time with. that will be what we pay attention to. obviously, the election is huge. i would be interested to hear what cantor says about this. >> you had a story, "your congress at work." the story is the top of our home page. it is about the do-nothing congress. tell us what you said in the story. >> it is always interesting to take a step back and look at what congress is doing, as if you were not involved in the political process. if you looked at yesterday as an individual day out of a year, there were votes to honor raoul allenburg. they are striking a coin for jack nicklaus. opening federal land for hunting. remember, we have gas prices above $4, $15 trillion in debt, as a backdrop for those votes. the senate is trying to reform the postal service. that is bogged down in an unrel

host: secretary of the treasury tim geithner on "this week" talking about taxmageddon.don't know how it is going to turn out yet. guest: these expiring provisions occur every single year. what has eventually happen is that on december 27, congress passed the extender bill. the irs is not able to program its computer for -- we are designing our forms and ideas back in september or something -- it is back in september or something. we will have the computer reprogrammed. we have seen that in every single filing season the past few years. the cost to the complexity delay and failure to get a consensus. host: david, independent line. caller: thank you for c-span. great show. add010, corremy wife and i did direct transfer to ira money. it was a 1099-r form we sent in. i took direct distributions and they want me to pay taxes for it. it makes you wonder, how can they make a mistake like this? two questions -- how could a simple statement to this -- all on one second -- host: david, we got to go. guest: look at the 1099 and see if all the boxes were correctly checked. the irs

we are on the cusp of a tax armageddon or i'd like to call it a taxmageddon, scheduled to hit january2013. the largest tax increase in memory, possibly ever, $490 billion tax increase in one year. so when we talk about taxes, we usually project the increase or decrease in revenue over a 10-year budget horizon, but this $494 billion tax increase isn't over a 10-year budget window, it's an immediate massive tax increase in one year. now, one of these tax in-- where did these tax increases come from? there are a number of tax provisions set to expire at the end of this year. unless action is taken to extend these provisions or make them permanent, it will lead to an unheard of tax increase in january. about 1/3 of the tax increase also come from the expiration of the bush tax cuts from stwun to 2003. these tax cuts reduce the marginal rates for all americans and expanded the child tax credit, reduced the marriage penalty, increased the tax break for education costs. the majority of the tax benefits in these tax cuts were targeted towards the middle and lower income tax folks. about a qua

taxmageddon is real.ceiling, the bush tax cuts, the sequesters and defense cuts, that all have to be dealt with. and we're all going to be dealing with them in about a month to a month and a half window. it's quite frightening actually. >> jeffrey, you and i have been talking about our concerns that we have a government spending money in an unfocused way, recreating another bubble. they have desperately been trying to recreate another bubble. they haven't been successful to do that. what gives us hope that when we have this big moment, this big fiscal moment at the end of the year, that washington is going to get it right this time? >> nothing. nothing gives us hope that they are going to get it right. but what i think is very interesting is that the clarity of this debate is increasing. people now see this is about the u.s. in the global economy. this is about global forces that are beyond what's happening internally. and what i think is interesting is that there are two visions of growth. we're going to

problem and what we're doing in the house is trying to prepare for what many people are calling taxmageddone're doing right now is we're laying out a vision for the kind of tax reform we want to see. again, this small business tax cut is a step in the right direction. overall tax reform means bringing rates down for everybody. we've also got this threat of this sequester that's coming, and this is something that actually will threaten our ability to defend this country, the officials at the pentagon have said they cannot endure this kind of across the board cut and we're trying in the house to prepare for that. we'll put forward a bill in may that will actually substitute out the kind of cuts to the pentagon with other cuts that we believe reflect sort of the common sense vision of how you take the country forward, how you save some of these programs and accomplish efficiencies and get rid of the waste. >> good morning, eric. it's carly fiorina. how entrepreneur >> hey, carly, i'm fine. nice to hear you. >> nice to be with you as well. one of the thing you and i have talked about in the pas

congress should not wait one more day to deal with taxmageddon. rather than waste time, like the so-called buffett rule in the senate, congress should deal with this immediately. before we can attempt tax reform, congress must, congresstaxmageddon. >> now max pappas, vice president for freedomworks. >> thanks, grover. thanks to everybody for paying attention to this important issue today. for those who do not know is, we are nationwide grassroots organization with millions of the country fighting for less taxes, less government, and more freedom. we are big proponents of fundamental tax reform. i want to talk about how we are going to do it. we have heard year after year from politicians that they are going to come to washington and change the culture of washington. president bush promised it, nancy pelosi promised, barack obama promised it. but the promises to change the culture of washington is the snake oil of electoral politics. every year we hear about it. i am not going to come to washington with my personal collection piggyback, but we have

in the newspapers we've been referring to that as taxmageddon with our usual restraint. but there are a lot of uncertainties that are out there. and you could argue that the president, by introducing the idea of the buffett tax, 30 percent minimum tax for millionaires, is adding to that sense of uncertainty as we head toward year-end. i want to ask you to address that question. is it just unlikely that we'll see some firming of business confidence until these issues are resolved which probably will be after our presidential election? and on the question of the buffett tax, a lot of people have wondered why the president hasn't looked instead toward more comprehensive tax reform? a lot wrong with the u.s. tax system. you could argue that equity is part of what's wrong, but why this limited approach to a big problem? >> good questions and thanks for raising them. you know, among the challenges we face as a country -- they're not the only challenge we face -- is trying to find a way to build political consensus around a balanced mix of tax reforms and spending savings to re