• With: Rep. Charles Rangel

    This is a rush transcript from "Your World," April 11, 2013. This copy may not be in its final form and may be updated.

    NEIL CAVUTO, HOST: Well, now we know. We are all fat cats, because it's not just the rich getting socked by higher taxes. Now -- well, now they have got company, us.

    Welcome, everybody. Glad to have you. I'm Neil Cavuto.

    And do any of you remember this?


    BARACK OBAMA, PRESIDENT OF THE UNITED STATES: If you make under $250,000, you will not see your taxes increase by a single dime, not your income tax, not your payroll tax, not your capital gains tax, not any tax. You won't see your taxes increase one single dime.

    One single dime.

    The middle class doesn't need a tax hike.


    CAVUTO: Why I oughta...

    That was then. Fox on top of a tax hit that is over the top, actually, way -- well, under the top, because if you make less than 250 grand, let's just say life with the tax man won't be grand anymore. Under the president's budget, you too could get slammed badly, especially if you're a smoker. You're looking at a tax on a pack of cigarettes almost doubling to about two bucks, or let's say you're a flyer. Try $18 billion in new fees to pay for aviation security.

    Or let's say you are a saver -- 59 billion bucks in taxes on banks and brokerage firms and life insurance companies that undoubtedly will be passed along to you via higher fees and charges. Or if you are, oh, I don't know, a driver, another $94 billion in energy taxes that will quickly work their way to you at the pump, or if you're just hanging out at home to that utility bill in your mailbox.

    Add them all up, more than a trillion dollars in new taxes over the next decade, Republicans all but saying the president has lost his mind.

    To New York Democratic Congressman Charlie Rangel, who says the president has found his nerve.

    Congressman, good to have you.

    REP. CHARLES RANGEL, D - N.Y.: Good to be back with you.

    CAVUTO: Those are lot of taxes, Congressman.

    RANGEL: Well, there's a lot of debt that we have and a lot of sacrifices have to be made.

    And I think it's just the American thing to believe, that if we all chip in, we all take a hit, we all make some sacrifices, that we will come out of this OK.

    CAVUTO: But when I heard the president and a lot of leading Democrats saying not too long ago that it was only going to be the $250,000-and-over crowd taking that tax hit, I was dumb enough to believe them.

    RANGEL: Well, obviously, you are in -- above that $250,000 group. And this is where you concentrated. The truth of the matter is that...


    CAVUTO: No, what I just cited, Congressman, were taxes that would affect below that group.

    RANGEL: We're talking about a whole new bag of wax. We really are talking about trying to get something with the Republicans that would cut back in spending and at the same time get rid of this sequestration.

    You can't do this. You cannot do this if you are just concentrating on cutting. And if we have to raise revenue, even if you were just talking about income tax reform, if you were talking about getting rid of loopholes, you have to raise revenues to do it.

    This whole idea that at a time when our corporations are making record profits, the stock market is soaring and we have more people in poverty now than we have ever had, we have got to come together on this. And you know it.

    CAVUTO: But do you think, Congressman -- I know the president was saying yesterday when he announced this that something like, well, the rich have to pay their fair share. Are they close to that point now? Should they pay still more? When do they pay their fair share?

    RANGEL: Let me tell you this.

    I have never heard a complaint with the successful businessmen that we have in this country, not in New York, and not in Washington. I don't know what...


    CAVUTO: Well, who are you talking to, people on Mars? I hear them all the time. Left or right, they feel like they're getting taxed up the yin-yang.

    RANGEL: I don't think that's -- I don't think that's the prevalent view of wealthy people in this country.


    CAVUTO: What wealthy people are you talking to, Congressman?

    RANGEL: I'm talking about those that we were talking about in the top 1 and the top 2 percent.


    CAVUTO: But in your neck of the wood, in your district, Congressman, the ones who are in that $250,000 crowd, and now we know with some of these increases -- for example, smokers, who on average earn about $40,000 a year, their taxes are going to double on a pack of cigarettes, essentially.


    CAVUTO: I'm just asking you, do you talk to these people?