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Does Kristol realize Obama is proposing raising taxes on not just millionaires, but those making $250K or higher (i.e. small business owners)?
Bill Kristol: The private reaction among Republican congressman was, honestly, including very conservative ones, was: I don’t know, do we really have to give in? I guess maybe we do. Maybe it was good that you said that. Because we do need to cut a deal. He won two elections, he didn’t raise rate, correctly, in 2009, because we were in the midst of a huge downturn, Republicans won a huge off-year election in 2010, and were able to bargain to a status quo deal. I just don’t think Republicans have the leverage, or that it is worth using what leverage they have to maintain rates at 35% instead of 37 or 38%, especially if you can take it up to millionaires. I just don’t think it is, economically, as matter of policy, important enough. The big deal has to be big tax reform with lower rates.
Chris Wallace: Thirty seconds left, Bob [Woodward], and this is the subject of your book. How optimistic are you that they make a deal and avert the fiscal cliff?
Bob Woodward: Let’s hope they do, but they’re going to burn Bill Kristol’s Tea Party card with him talking like this… You’re off the reservation…
Kristol: A lot of the Tea Party guys don’t care too much if a few millionaires pay couple percent more in taxes, honestly.