now. megyn: fox news alert on the new detail coming to light what just came in in the last minute deal. to head off a series of the tax hikes and spending cuts we were expecting. welcome to america live , happy new year everyone, i m megyn kelly. we re learning more about the budget deal congress passed late last night. this started out as a debt reduction bill and ended with spending and increase the nation s debt. didn t work out exactly as planned. the bottom line, this law will provide 620 billion dollars in new tax hikes. and 15 billion in budget cuts. and for those of you keeping track at home. for every $1 in cut, according to the so-called debt deal adds nearly 4 trillion dollars to federal deficits over the next decade largely because of the extension of lower tax rates for almost all americans.
increase this bill and basically that is going to be a problem when house conservatives hear that this is actually going to increase the deficit. there will also be a problem for the credit rating agencies who have warned congress they may downgrade the nation once again, that is going to be the problem here. that is the delicate thing that mitch mcconnell and joe biden have to do. they have to get a deal. we are talking smaller and smaller deal and that is going to be a problem, because this may not actually reduce spending. reporter: really quickly, though, people wonder why the negotiations have now shifted to the vice president and mitch ma tkopbl when fo mcconnell when for a longtime we were hearing it rested in boehner s hands. first it was boehner and obama, they failed to get a grand bargain. john boehner was unable to pass his plan b debt reduction bill and they decided to go in another way. boehner said let s see what the senate can do. we saw senator reid and mitch
about what they are doing here. i think the reason simon doesn t like it is because it gives the republicans leverage to force the president to deal with the debt. the president has as much chance of succeeding as you have of getting john bolton to cry on your show. megyn: i think i can do it. a challenge? i bet you can. in the last 27 years, every significant debt reduction bill that passed starting with graham rosen has been linked to a debt limit increase. this is the only tool in washington that forces both sides to do something about the debt and spendersing. so republicans aren t going to give this up because it s the only tool they have in this political situation to stop the president from going forward. and the reality is last year speaker boehner set an important resident. it s called the boehner rule. one dollar in spending increase
questioned. i think he has a tough reelection battle ahead of him. shannon: we will have a decision from the court before the election. just barely, though. shannon: unless they do something way out of protocol. doug, if he does win at the supreme court how much of a boost would that be going into the fall? it would be a boost but going back to what cherylyn was saying. he is going to extend the payroll tax holiday and unemployment benefits. we shouldn t be raising taxes on middle class americans when the economy isn t right where it needs to be. interesting to see if the republicans go along with them. it was their idea to pass the payroll tax holiday and so we will see if they are going to go along it w. it or block it. i think the president did wait on the deficit reform. it was interesting that the largest deficit cuts, the plans out there were all put out there by democrats and by the president. the debt reduction bill by the
give him all the leash that he wants, he just wants to sleep on the floor. the money is there and the possibility is there when confidence comes back, it could all come back in hyperspeed and that s what we all hope. thanks a lot, dick morris. thank you. coming up straight ahead, this guy on the right you re about to see, that s van jones, one of the obama administration s most controversial czars. but vice president joe biden doesn t remember. he used to work for him or with him. really? and something secret got slipped into the debt reduction bill. a law that makes it easier for debt collectors to track you down with your cell phone! oh, great. stu varney in studio e to explain. and happy birthday to steve miller. the singer turns 67 today. angela ] endless shrimp is our most popular promotion at red lobster.