The Journal Editorial Report: 10/3

" This week on the journal editorial board talking to Iran what the US got. They gave away at this week's negotiations. And health care double -- Democrats want you to pay a penalty if you don't buy insurance. But whatever else you do please don't call it attacks plus a preview of the big election this November. And why they may signal trouble ahead for the president's again."

" We're committed to serious and meaningful engagement but we're not interested. In talking for the sake of talking. If Iran does not take steps in the near future to live up to its obligations. Than the United States will not continued to negotiate indefinitely. And we are prepared to move towards increased pressure."

" Welcome to The Journal Editorial Report on polish ago that was president Barack Obama on Thursday warning Iran that. The US won't talk forever. Representatives from the United States UK France Germany Russia and China met in Geneva this week with Iran's chief nuclear negotiator -- Around reportedly agreed to grant UN inspectors access to its newly disclosed uranium enrichment facility act cool. So will our patients pay off Iranian journalist Amir to Harry joins me now from London American very great to have you back on the program. So the New York -- the center of the the Iranians have made key concessions. Do you agree with --"

" Enough -- sordid facts to know that negotiations wrote about three United Nations resolution that demanded. That the darn sure -- stop booted yum enrichment. Now the negotiations are no longer about that but about. I AEA the international atomic energy agency inspect as being allowed to inspect one of decides that. Beyond has declared so from mad desire of unmanned -- to -- inspection."

" Well -- what about the ability to at least inspect this new site which -- only disclosed last week Iran had not previously disclosed that -- we I guess US intelligence had known about it but. Didn't tell anybody else isn't a good that we could get access to that."

" When yes you know what to your job is obliged to allow. Access undivided non proliferation treaty not video -- sides. Under inspection by that I needed it out in fact time and -- installed in or not the job in sides. On this one would have happened in the same -- but. And it is absolutely no no concession that I don't see why the IAEA inspectors who body in Tehran actually need right now. Doing drive through this new side to -- an hour's drive have a look at it now you don't has promised to dialogue and to go there every -- in the next few weeks. Why shouldn't be good -- now why should do you rate so that everything you sanitize that."

" What about the ability to the willingness of Iran and they said they might be willing to do this to take uranium some of the uranium which they've enriched and this is the fuel that could be used to make a nuclear weapon take that -- restraint and move about 75% of it outside of Iran. To Russia or France is an at a concession."

" Not a told because that was also an ideal puts in by disapprove -- Of the Russian. About three years ago even did the in the -- issue is. That the UN policy on not to enrich uranium nine it is like I did did you make carpet buzz Saudi not as long as you by demand carpet. He'd give you some -- out of there and give you some to you there did you didn't attend -- you know -- tissue on both cheeks and so on but did Iraq you have multi. You know I did -- doesn't mr. Obama has both easier -- right to continue to enrich uranium. So you'll be -- your conclusion would be that Iran Iranian leaders have no intention of giving up their nuclear. Weapons program. Absolutely not that you have to be understood this city did says openly you know a yen and the Jan you know -- You don't want to hit it in the United States. They -- tactic guarded the death you know on the region not to stop its nuclear. Project -- now let's talk about the other things and about Palestine about. -- global warming about trade -- Nude man before mark the United Nations and I've given that package and reach everything used mensch and decided not to saving their rigs."

" So put yourself and I have been in the head of the Iranian leaders have an if if that's their intention and what do they hope to achieve from these talks because President Obama says the ultimate goal is to get them to cease and desist. With the military program."

" When you know DOT finishing his first awarded achieve some legitimacy at the time that -- in his -- has lost right to be took his. Legitimacy because of their -- elections and the continued. Unrest in the country these opponents say that these policies are leading to sanctions on the war not he's a -- in fact two billion -- offices. You -- want to be DOS sanctions on me not war so you know that's is the nefarious -- he missed his second Yang is to say if that I to continue enriching U Virginia you know you're you can agreed to. I'm not too slow it pays spread -- the fact that you can continue to do you're doing you that not everybody is. Accepting death -- I visited you have major coup for Ahmed in his job and said you -- by Ty -- ability. The mechanisms of -- attend electoral system and so on paralyzed. Obama administration or done on other election as other people com. I'm so I'm by dot stymied on his older did you coupon on -- truly put anybody to do anything about the that in the mean time. Why -- negotiations continue of course. There is no possibility of anybody yet touching the union and you did read. The sense says that the same time President Obama has Costa congress not to cause. They've been -- bad -- the city of doesn't into -- it would be a slower than what I from dozens of yes you know so you got his protected goes against. It's a reaction against it that this sanctions and reduce talks these -- Of course president promises. Cannot go on indefinitely but you -- doesn't want him indefinitely Don wasn't for the next eighteen months to two yes not indefinitely. That could be quite enough. And add this space. The talks --"

" Us that long all right well we'll be following it every step of the way and mayor Terry thanks so much for being here. Thank you when we come back President Obama thinks you should pay a family if you don't have health insurance but whatever you do. Please don't call -- tax."

" Democrats want to require you to buy health insurance or pay a penalty but they don't want you to call it a tax. Under the baucus bill the so called individual mandate. Would require everyone to buy health insurance or pay as much as -- 1900. Dollar fee. And if you don't pay out the IRS could punish you with a 25000 dollar fine or a year in jail. President Obama supports the individual mandate but refuses to call it attacks when. ABC news's George Stephanopoulos called him on it earlier this month. The president engaged in a little rhetorical tax invasion of his own telling Stephanopoulos quote. You can't just make up that language and decide that that's called a tax increase. Joining the panel this week Wall Street Journal columnist and deputy editor Dan -- wsj.com. Columnist John fund. Washington columnist Kim Strauss OK again well partisan attacks what is it."

" Well what we call the quack tax cut that seems to quack like attacks. You know. The biggest problem was that. They have to do this together but he into the pool and one of the things that into the insurance and an insurance pool and one of the things the president also said in that interview is look. You are now part of a big pool we've driven no cost and so you can opt out. His problem here is that this is -- worship. Remember this came up in the primaries between him and Hillary Clinton President Obama opposed it he said Hillary you would force people to -- apparently used it in his advertising against exactly and she was honest enough to say yes there would be. A mechanism to force people that they happen to have people into the pool to make a large enough to work."

" but here's the issued under the argument other -- is different than auto insurance which if you drive you are in the most states obligated to buy if you won't buy anything you sometimes have to pay into a state liability pool -- is different."

" Well you don't have to drive you don't have to own a car that -- this is going to be literally. All coercion all in the pool I think it's not."

" The same thing Paula I'm from California. You can have a loss thing people should have auto insurance one out of five drivers in California roads don't have auto insurance so. You can have the law whether the of the enforcement a separate issue. Kim on the politics of this there are a lot of -- Republicans who are now saying look this would violate the president's promise made in the campaign and sense. Not to tax anybody who makes less than a quarter of a million dollars. A year is this making any difference with Democrats. Make it and make you have any doubts about this a program."

" Plumbing. So far and their votes and no it that the Republicans actually put forward a couple of specific amendments and the senate finance mark up this week saying. Let's make sure that no one under a within come under 250000. Dollars paid to tax those amendments were voted it down. So so they are not change their mind and forget to immune don't get -- just hung up on the individual mandate -- there are a lot of other ones as well. You know that there was a new provision put in that would have been a limit one's ability to deduct medical expenses from their taxes. There are taxes on medical device makers -- taxes on insurers and those taxes on corporations will of course be passed down to consumers so all this is gonna be more cops."

" What we -- a Massachusetts which has a similar mandated Texas that the a lot of young people in particular simply won't buy insurance -- that. That the penalty it's about 700 dollars or so in Massachusetts it's still not buy insurance until they're sick. Because they'd rather spend the money on something else and in fact that the penalty is still less. Then the cost of insurance so that's why one of the reasons Democrats what you wanna make this tax much steeper if they can't federal force people to actually buy insurance."

" Well as chief of staff of the joint task committee said the penalty here could be 25000. Dollars and time in jail. That's got to step."

" I don't think they can go that far in Massachusetts people who don't pay the penalty they're trying to chase them down but it's very difficult. I think what this all business takes the perverse incentives we've built into our health code. And make them far worse it's what about the of the tax in this in the baucus bill one on medical device makers for example. About forty billion over over ten years it's not that big an industry you know. Well you know this gets back to the campaign again which."

" Barack Obama said that he would only raise taxes on the rich nobody making under 250000 dollars was going to get a tax increase under his administration. Look he's got this huge medical entitlement that is creating. Somebody has to -- court. All of these fines and cost eventually will be passed through to individuals. You can call it whatever you want you -- attacks of fine. Nicholas max but the middle class is gonna pay."

" Four and down the road John becoming a value added tax that yes senator for national progress I guess that's known -- American progress John Podesta think tank who is very close to President Obama. Has come out and said. Of evaluated Texas something we need the only way the European countries have been able to afford national health insurance. His but all of them imposing a value added tax which is a hidden tax. And that is the next step after we passed this massive entitlement programs Campbell the momentum in Washington is still pretty strong in favor of this bill passing is that not a mean -- the rumors are now that the administration is going to really with the Senate. Is gonna try to. No work this and if they need to maneuver through the some procedures get it through no matter what happens is that what you're hearing."

" They are desperate to get it through the view it very clearly is that if the president were to fail on this his key point from his campaign on his key center of his agenda."

" That he would be -- for the rest of his his term in office I don't really believe that -- to wake him I don't believe that I think that is something that Democrats have an advantage to help pass this year I think that that. President still personally quite popular I think that not if this failed he wanted and much is that when -- when when Clinton care failed in 1994. He was able to revive his presidency."

" Now and I think I actually think that's right but this is the argument that there -- I think some people actually do believe this that they have invested so much they now must push forward. Under any circumstances and what but what they have done so what they're talking about it is either trying to get those sixty votes to get past the filibuster which still looks a little hard. Maybe captain of this to some other former of of of at legislation simply to push it through. Or really have to still going ahead with this reconciliation. Process kind of just jamming it -- where you only need fifty votes and and and that is still on the table as well but we will see movement in some --"

" John I don't see that that they're gonna let this and not -- If the elections on November 3 in Virginia and New Jersey go against the Democrats I think you could see a lot of blue dog Democrats in the house rising up and saying. We saw what happened 1994. And there is something worse than not pass -- health care bill that is us not being members of congress --"

" those elections when we come back why Democrats are sweating the November elections will preview next month's two big governor's racist. And why both could signal trouble for the president's again."

" New Jersey and Virginia the only two states with governor's races this November and both may signal trouble ahead for Democrats and the president's agenda the polls have tightened in those states in recent weeks. The latest real clear politics average. Has Republican Chris Cristi leading democratic incumbent governor Jon Corzine. In New Jersey by four point. And in Virginia Republican Bob McDonnell has a seven point lead over Democrat Craig -- the last time Republicans won both the New Jersey and Virginia governor's race was 1993. And Democrats remember all too well what happened in the mid term elections the following. Years so job why -- these racism particular significance this year."

" Barack Obama carried both states easily only a year ago. Nawaz approval ratings are hover around the 50% more in the state of both states and this is trouble. In 1993 as you referenced what the Democrats lost Virginia New Jersey. The democratic congress never again pass any kind of significant legislation and of course the Republican landslide came. The blue dog Democrats 49 house Democrats that districts John McCain want. 4949. And a half a dozen democratic senators. They are worried that if Virginia New Jersey send a signal about dissatisfaction with Obama policies in general will the president remains personally popular. That could mean their seats would be in jeopardy in a landslide here. Our colleague -- film earned who has the misfortune of living in New Jersey. Says that there is. Obama versus bush dynamic in both races as well. Describe that."

" Well in New Jersey Jon Corzine -- Argument has basically been if you wanna collect my opponent in your vote electing for bush and Cheney again it says he he says it's the same old bush policies that got us into this trouble. How Bush's policies had anything to do with New Jersey is anybody's guess they've created their own problems. But the -- John's point especially in Virginia Obama carried Virginia by six point it was the first time a Democrat had won there in 44 years. And this is now one of these kind of swing states that the Democrats think they have begun to pull over to their side. Virginia however is not New Jersey new Jersey's democratic state Virginia's more of an anti government statements that goes back against them just as John suggests. The blue dogs are gonna say whoa I can't test myself -- this ideology."

" Kim you followed the Virginia race. From Washington and you've written about it how much traction is the Republican candidate getting with blinking the Democrat to president Obama's agenda."

" A lot you know I'd argue that this is one of the reasons why now he was up in August he was up fifteen points in the poll this -- the Republicans -- Yet the Republican who was ahead Bob McDonnell he gets in trouble thesis that he wrote twenty years ago was popped up that. This suggests he had some sort of social views that haven't sat very well with some of this is very conservative social views about women for in particular. -- women in the workforce exactly but the what do you done up until then until this should came up is just. The day after day after day connect -- deeds who's the Democrat with the Obama agenda and Washington and what you. On on on spending and on health care nonunion support and on everything health of Virginians as Dan mentioned. You know that they have elected Democrats to the governorship the past two elections. They can be very centrist governors and -- tried to suggest that he's in the mold he's at a very hard time making that point though he really. Has been seeing is connected some way with this Obama administration and he's he suffered as a result of -- he's struggling get his message apart that he that he is some sort of different Democrats. What about."

" The tax issue but governors of Virginia democratic governor's race taxes twice at least in the in the last figures and Democrats multiple times. This decade now New Jersey has. Some of the highest tax burdens in the country may be the highest. According to the Tax Foundation is making a comeback and that in these races Texas it -- in New Jersey 41% of voters say taxes are my number one issue. And Corzine is unpopular. But the Republican candidate Chris Cristi has done a miserable job explaining what he would do the former US attorney put away an awful lot of bad guys. So he's running on an anti corruption record which in New Jersey is actually. Not bad but you're saying he's not running on anything as of substance there's no details yet effective independent candidate who's -- percent in the polls Christopher guy get. Has a plan which of the surface looks like it's gonna cut taxes. And Chris Christie doesn't have a response to it yet. And Virginia I think Craig -- has the problem because he has said I will raise taxes to pay for transportation projects. Bob -- responses but -- sell the state liquor stores instead and that's."

" But without -- her well -- I guess -- Virginia to raise a lot of big wrinkle. I'm bill White House is very alert to what the stakes are big of involve themselves deeply in the Corzine campaign they're signing off on his TV ads their watching is polling that they controlled his polling. This is really a big deal for Barack Obama's. What do you think this means for the Obama agenda Kim if in fact the Republicans do manage to women both of these states his cap and trade for examples and that's dead for this congress."

" Yeah I mean not odds are ready on life support and I think that you finish that off with this but they expect to what John said this is key for health -- and that's why you see this desperate. Push by the White House to get this legislation done at the health care legislation done and pushed through. As quickly as they can they don't wanna hang around past this November election because as John said. The blue dogs are gonna have to use this as a barometer on the country's feeling right now for the Obama administration's agenda and if they feel that the public's turning against the they're going to be. Less likely to put themselves up for this and."

" Out. All right Kim thank you we have to take one more break when we come back our hits and misses of the week."

" Time now for our hits and misses of the week -- first you."

" Well -- a Wall Street Journal columnist this week asked the group of experts which cities they thought college graduates would be likely to migrate to a post recession atmosphere. Are you ready for it is tied with Seattle for number one. Washington. DC. Why Washington is growing. Lot of lobbyists are going down there they also have 4000 nonprofit institutions. As the head of the DC chamber of commerce said. People are moving from Wall Street. To K street. You know there was a time when the rule of thumb in this country was go west young man Barack Obama has created. A government gold rush the side are done."

" agriculture bill. It has all the farm subsidies and -- this week the house voted to -- 72 are waiting periods of members of congress to put up the bill on the Internet. Everyone could read it make sure their farm subsidies were all right. That sounds fine but when it comes the health care bill which is gonna re order 16 of our economy. Speaker Nancy Pelosi is holding back and refusing to have a vote. On -- 72 hour waiting period for the health care bill there is such desperation to ram this thing through American people are not going to be able to read it I can't."

" sometime need to give a hit to US authorities from moving to extradite a Roman Polanski back to the United States. We have heard some amazing. Outrageous defenses of the from Hollywood of this film director. Who thirty years ago sexually assaulted a thirteen year old admitted he did and then fled the country -- to avoid going to jail. You know look at the bottom line is it doesn't matter that he's the old getting on in years and it doesn't matter if this happened along time ago what matters that we are nation of laws. He's not above a lot he should go and have his time in court here like everybody else."

" I think you can finally remember cash for clunkers that was the federal program that -- thousands of dollars to buy a new car he turned. In an older one well it worked for a few weeks the auto makers just reported their September sales however. After cash for clunkers expired and what -- OGM's sales fell 45%. Chrysler's 42%. And Ford's 5% all of which shows the critics were right that all cash for clunkers it was steal sales from the future. Rather than we did new production much less to a revival of the auto industry has always the real clunkers of the folks in congress who dreamed this -- Thanks to all of you for watching we're glad to have you here we hope to see you right here next week."