Tax Deals In The Senate
JOHN KING, CNN HOST: Ali, dead right, on that they'll need Republican help. You remember the START treaty controversy. It's a big nuclear arms treaty with Russia. The President of the United States says it's a big deal and the senate has to pass it before Christmas this year. Democratic leader Harry Reid -- his spokesman telling our Dana Bash they'll bring that up right after the tax cut vote. That could even happen tonight, maybe tomorrow. But the tax cut vote likely to be tonight on that deal. Then the START treaty. Jon Kyl, the conservative Republican from Arizona says he has a lot of reservations about this and he says he has told the leadership -- the Democratic leadership it would be a mistake to bring it up as soon as tomorrow. That seems to imply Senator Kyl thinks he has the votes to block it. They need two-thirds of the senate, obviously, to approve a big treaty like that. So we'll watch that drama play out. Here's another drama: Mitt Romney, the former Massachusetts Governor, ran for President as a Republican last time, didn't win the nomination. He's moving around the country. Most expect him to run for the Republican nomination in 2012. Well, that tax cut deal we were just talking about? Most Republicans in the senate expected to vote for it but Governor Romney says it's a bad deal. He wrote an op-ed in USA Today saying it's a big short-term economic stimulus and that helps President Obama, might even help him for re-election, but Governor Romney saying it's a bad deal. Looks to be, Ali, there, Governor Romney reaching out to tea party conservatives, trying to say "I got your back in this debate". And, lastly, Rahm Emanuel, the President's former Chief of Staff, well he's been at a day-long hearing. This could go on for three days out in Chicago. More than 30 people in Chicago have challenged his right to run for Mayor of Chicago saying he doesn't meet the residency requirement. You have to live in Chicago for a year before the election. Rahm Emanuel, of course, had residence here in Washington. He says that was temporary, he was serving his country and his president. But, Ali, this is a serious challenge. Rahm Emanuel's legal team expects to surpass it and make the ballot. It's a serious question, but you should watch some of this hearing if you haven't had a chance because a lot of it is pretty funny.</s>VELSHI: Well, a lot of the people bringing charges, some of them are running against him in fact. There's a very heavy field of people who want to run for Mayor of Chicago. I mean, at some point it's legitimate there are rules people follow, but generally the spirit of this thing is that Rahm Emanuel was in Chicago until he came to the White House to do a job for his nation. You'd would think that would carry some sway.</s>KING: That's what he certainly hopes is in the end. What the critics are saying is it wasn't just him, but his family as well. His kids came here to go to school, he leased his house in Chicago. They said he went further. That we sort of was bringing his family. I think you're dead right and that's certainly Rahm Emanuel's position. You're exactly right saying some of these are opponents who are running against him. Some of them are just people in Chicago, I think, trying to get in the headlines a little bit. It's important political theater, but boy, some of the challenges are pretty funny.</s>VELSHI: Chicago does give important political theater. Let's go back to Mitt Romney for a second. It's important to point out there are democratic opponents to this tax deal. A lot of democrats who think the President gave away too much. But there are conservative opponents to this tax deal, particularly some of the tea partiers, who you have said Mitt Romney might be appealing to, who says this does nothing to cut the deficit.</s>KING: Absolutely right. The unemployment benefit extension in there, they don't pay for that. There's an estate tax thing in there that most conservatives like. Extending the bush tax cuts, most conservatives like. But they say, you know, "where are the spending cuts? If you're going to extend the tax cuts and give people unemployment insurance for another 13 months -- where are the spending cuts?" Governor Romney tapping into that. And, Ali, you know, he has a bit of a political problem in the Republican primaries because of that Massachusetts health care bill. This is sort of Mitt Romney saying "maybe you don't like that, but I'm with you on this."</s>VELSHI: Alright John. Thanks very much. Good to see you, as always. We'll have another political update in just another hour. As John and I were just talking about the big tax deal between the President and the Republicans could have a really big downside on the money front. I'll tell you how it could threaten the economy in my "XYZ" coming up next.