'This Week' Transcript: Jacob Lew and Jon Kyl

And right now, no matter what happens, nobody is going to win in this.

MS. AMANPOUR: So you're right because you see majority say they want to see the parties compromise and reach some kind of an agreement over these big issues.

MS. ROBERTS: When Congressman Labrador says, we were elected to do something, what I think the American people keep saying is you were elected to do something, to come together, to make compromises and make government work. And why isn't that a message that you hear?

REP. LABRADOR: But why is it that compromise always means increasing taxes today and doing cuts in 10 years from now. I think that's the problem that the American people -- the American people will not stand for that. I think we can do something -- we can come on the table and actually work together, but it is pretty clear that the president is unwilling to not increase taxes. He's unwilling to do something serious.

I want to know what his plan is. So far, we have no idea what his plan is. He has not put anything on the table. All he talks -- they have all used the same phrase, grand compromise, because what's poll tested. Apparently, the people like that but it doesn't mean anything.

MS. ROBERTS: But in all of those -- in the meetings with Vice President Biden, lots of specifics were talked about. They have -- what is the number, Jon, 1.4 trillion (dollars) in --

MR. KARL: But as George points out, it's only $2 billion in cuts in 2012, which will never fly.

MS. AMANPOUR: But can we be clear on the tax issue? Are they proposing raising the marginal rates? Or are they talking about closing loopholes and other such corporate --

MR. KARL: Right now, the talk of raising the marginal rate is absolutely dead.

MS. AMANPOUR: Exactly.

MR. KARL: So it's a question of what you do in tax reform and do you have a net increase in tax revenues by closing these rates, or do you, as the Republicans want to do, simply lower the rates with that additional revenue.

MS. AMANPOUR: And, you know, again, we keep talking about polls, but this week there have been a lot of polls saying that the majority of Americans want the so-called balanced approach.

REP. LABRADOR: And what does that mean?

MS. AMANPOUR: Well, revenues and cuts.

REP. LABRADOR: And I don't agree that there's been a lot of polls that say that the majority of Americans -- actually, most of the polls have said that the majority of Americans don't want to increase taxes. If you look at the Gallup poll, it said that 51 percent of people do not want to increase taxes. So I actually disagree with you there.

I think there's been some polls that -- when you use the phrase "balanced approach," everyone wants a balanced approach. I would have answered yes to that question. I want a balanced approach because my definition of balance is different than the president's definition.

MS. ROBERTS: But I still think politically -- politically, you're in a very risky place because I do think that the president is getting through by saying over and over again that Republicans want people with corporate jets not to have to pay taxes, people who make a billion dollars not to have to pay taxes. That's not a politically good spot to be in --

(Cross talk.)

MR. KARL: But you can't balance the budget by raising the taxes on corporate jets.

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