in new taxes they rejected that. they rejected everything the president has offered them. jon: jim is this really all about taxes? >> it could be, and i think the president has the bully pulpit. he's the one speaking to the governors and so on. i wouldn't underestimate his power to win this fight i. think if the republicans had wanted to win they should have gone back a year and held years for the last year about how you save a measly 2%. they should wear buttons, i can save 2% so can you, to show how minimal economizing would accomplish this. we are are at the last minute and i'm afraid the president has the upper hand. jon: the federal budget is still going up this year even with the sequester we will be still spending more money. >> the rate of increase we're spending has been less than previous p. the rate of increase is less. there is always increase. even if we stop where we are now there is still an increase even with a sequester. >> except of course for 2009 when it went up like by 25%, other than that.