maybe democrats pick up a couple of seats. there are a lot of races still to be called. but john boehner is still the top republican elected leader, and he s going to have to go against harry reid and president obama again to strike some type of deal on taxes and spending. jon: and he has has some have put it the most difficult job in washington now because he s got a substantial number of tea party supporters in his caucus who are not going to be inclined to go along with tax increases, but the president and harry reid are going to be pushing what they ve been pushing throughout this election which is tax increases on high earners. this election was a lot about taxes and tax policy. john boehner has said we retained the house we re not going to raise taxes. there will be a lot of wrapping lynn. president obama because he won a second term has the leverage advantage. if nothing is done all the taxes from the bush tax rates will go
including sesame street and big bird. the actual big bird is 8 feet talk. it is a fake march. anyway. we have got a multibillion dollar storm clean up to worry about and sequestration cuts and expiration of all . bush tax rates and these people are mad about puppets. okay. ed henry traveling with the president. edward good to have you. how are thingings - things out there. we are here with the president and in all seriousness he will have a big rally in ohio . a big crowd in the gym. it is one of those key subbushes. but four years ago when he was a rock star cand date. one of his final rallies on
a new report says by the end of the year, the economy may take a bigger hit regardless about who gets elected. tell us a little bit about that. reporter: is all about the fiscal cliff. everyone has been avoiding talking about it in washington. the bush tax rates expiring. taxes will be going up and in early january, we have the sequestration, which means that we have spending cuts that are kicking in the gives you an idea of the impact it is coming after the election, as much attention as we are paying on the election itself. undecided voters want to talk about this.
referendum on president obama? if it s going to be a referendum on the president, which is how i see them winning, if they are going to win, you really don t have to do specifics and you have to keep putting it all on the president. if you re going to make it about choice, you have to give specification. so they need to decide what direction they really want to go here. it appears as if the campaign has made that decision. it appears as if the campaign has decided we re not going to give specification. we are going to turn this into a referendum on the obama administration. well, here s why they don t want to give specifics. they ve been very happy to give specifics on how much they would cut taxes. they want to cut everybody s taxes in addition to keeping the bush tax rates in place by 20% across the board. that s going to cost $5 trillion. what they don t want to tell you is how they will make up that $5 trillion so they don t lose more revenue. the reason for that is it s all so
tightening of fiscal policy and would probably lead to a recession early next year. megyn:ed henry live in north las vegas where the president just spoke. reporter: good to see you. the president just wrapping up this event at a high school, campaigning in this battleground state, but the grim news from washington as you note, the cbo also projecting that for the fourth year in a row the federal budget deficit will top $1 trillion. in terms of the fiscal cliff that is coming that they are warning could lead to a recession, that fiscal cliff is referring to the fact that congress, leaders in both parties, failed to get a deficit deal some months ago. we have these automatic cuts, spending cuts called sequestration, defense cuts, other cuts that are coming at the end of this year. in addition to that the white house noting in a statement today that they believe house republicans should pass an extension of the middle class bush tax rates, extend those, get that going. the republican re