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Sen. Kay Bailey Hutchison, (R-Texas), breaks down her Social Security reform plan and raising the debt ceiling.
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White House but joining us now Republican senator Kay Bailey Hutchinson from Texas.
As a result -- they talk to you and there's so much discussed with you this afternoon first.
Customer entitlement programs like Social Security have been a major source of disagreement throughout.
This whole entire debate you have a plan that would help cut spending particularly on Social Security.
But -- preserve the program how exactly will that work.
Basically it does not increase taxes on -- -- it will not cut -- benefits on -- one.
It just raises the age gradually three months a year starting in 2016.
To the age of 69.
By 20/20 seven.
And it will lower the cost of living increase by 1% so if inflation is two and a half percent it would.
-- -- whole -- of one and a half percent that's -- it and it will fix those security for the 75 year gap I think it is essential that we address entitlements like Social Security if we're going to really make a dent in the deficit.
And certainly speaker Boehner we just heard from -- our reporters -- quarters that hit from the White House is now that that mr.
Boehner is.
As behind you having said that there are some on the other side on the democratic side.
The believe that oil and gas companies need to pony up in particular they're getting too much and subsidies too much in tax breaks overall I know the Texas your state.
It is personal when it comes to the in history hadn't had conversations with leaders in your state.
I have not but I know that -- guest doesn't get any business deductions that every other business doesn't get.
Talking about niceties of mean it's the general business deductions.
I think that we should treat every business -- saying and if we take away deductions and we lowered the rate I think that would be a fair trade.
It would actually increased revenue.
But it would be across the board fair -- not singling out one industry that.
There may be doing well now but.
So other companies are two other industries are too why would we single out one and treated differently from every one else.
Senators Bob O'Brien there subsidies I think it's disingenuous.
A cracked.
Senators Cardin -- -- this bubble Bryant.
You don't Wall Street continues to behave as though it's inevitable that an agreement on the debt ceiling will be grabbed a -- -- by August 2.
Is Wall Street wrong in being -- so self assured about this.
Well I think that they are wrong and being self assured but they are right that all of us are taking this very seriously.
But we're not going to vote to increase the debt ceiling and many Republicans have said so unless there is real reform that will assure that we cut spending enough.
That we will not ever have to raise the debt ceiling again and we will start bringing that debt down to a reasonable level so I it is not a done deal.
And Wall Street should not count on it but know that we don't want to have this.
Happen we don't want to default we don't want to.
Have any kind of prices but we believe it would be a crisis to raise the debt ceiling and act like it's business as usual in Washington.
Senator and mrs.
Sanders -- I've just broadly speaking where are we right now on this obviously this meeting is continuing on Capitol Hill as we speak.
Are we coming together on this are we making progress in the due -- really believe.
I think there is now a little bit of progress being made for the first time I have felt that way this week because.
Before that we were just seeing the president talk on TV and say we have to raise taxes on corporate jets and then we would have our -- saying no we're not gonna raise taxes in this kind of economy.
Now we're talking about revenue raising that would be something that would be tax reform.
Where you.
Might get more revenue because you build the economy that people would be hired that there would be more revenue coming in because our economy is booming.
That's the kind of revenue increase we'd like to see.
Well senator another thing that you've been very vocal about -- -- years and estate taxes -- particular has been small businesses and the effect of any type of tax break.
On the small businesses those that file as LLC is -- from corporations.
There is still it seems this sticking point -- -- you're saying that this progress so sticking point when it comes to raising taxes on.
He millionaires and up the president has mentioned that these -- he has mentioned that where do you think this is gonna end up for small bit.
-- across the country.
Well of course as you said so many businesses are either single or partnerships are they are subchapter S corporations and of course they are taxed at individual rates so when you talk about.
Taxing and gross revenue.
That's been in and do more to put a damper on employment.
We have 9%.
Unemployment in this country.
People that the small businesses I talk to our most afraid of this health care plan and the cost increases that that is going to.
Provide for them and to have tax increases on top of the health care needs he's going to.
To really make small business just.
Not only not higher but go into real experiments musicians and it.
I think that we've got -- really think about health -- looming out there as well as tax increases in this kind of environment.
It just doesn't make sense.
And -- jobs as you mentioned senator always a pleasure to talk to you senator Kay Bailey Hutchinson Republican from Texas senator thank you.
Very much but -- feel at home we want to hear from.
