Also in this playlist...
This transcript is automatically generated
The gang of six is back releasing their proposal for fixing our national debt problem it seems to be gathering bipartisan momentum with at least thirty additional supporters.
But there are concerns.
I think what the gang of six has been doing this is constructive I mean they are including revenues -- -- including past but there's a lot of questions because.
There aren't details both about the process in about the content.
And then that this proposal is just a five page outline.
Is -- a planner wish list let's turn to Evan Bayh former Indiana governor and a former senator is now Fox News contributor great Cesar.
Very good to be with you -- remake of this gang of six proposal I mean it.
It seems like it's supposed to be comprehensive it's supposed to be balance can -- do both of those things.
Well my first observation is it's nice to see Democrats and Republicans agreeing on something in Washington that doesn't happen.
And even if it's kind of the general outline.
And they are try to take us in the right direction of getting the deficit down.
But as that clip you just -- pointed out.
It really there's there's a lot of unknowns about this we know that it would reduce the deficit three point seven trillion dollars over the next ten years that's good.
It be about 75%.
Spending reductions but we don't know what exactly some of that would be Social Security we don't know -- what exactly and then it would be about 45% revenue.
But we don't know what exactly apparently they would get the overall rates down.
By -- loopholes but which ones I -- so so well attended the right direction good to see it working together lord knows we -- progress of the deficit but.
People are gonna vote for -- -- -- -- they need to know the details it may have come a little late in the day.
They get it taken a poker you know you get -- the whole thing on the back of a cocktail napkin.
What's with dig down just a little bit because there -- things it would do immediately immediately cut 500 billion from the deficit.
Compel -- senate to make three point seven trillion cuts over ten years so unused federal property I don't know if that's a lot of money freeze congressional pay that would really tick off some folks.
And reform entitlements but I don't know by how much.
Can all of these proposals make it or are there things that just won't go through.
Well I think of all the things that you mentioned there you mentioned entitlements Medicare Medicaid have been on the table for some time.
There's a debate about how much and to cut how to go about it but.
Social Security apparently is in this proposal and I think perhaps little bit -- hot hot button for some people now apparently they do -- -- reforms in Social Security to make it.
Financially stable for the next 75 years so that would not go to -- deficit reduction but apparently that is a precondition for the rest of the thing going into effect.
And in my conversations with my former colleagues -- on the -- that's that's -- heavier lift the Medicare Medicaid.
-- Very well at -- down a little bit more because there's more to this.
First of -- at it would kill one point seven trillion Alternative Minimum Tax this is attacks the plagues middle class.
And strangely they think they can save my money by getting rid of this tax which is at very high for people.
Also reduce marginal rates and eliminate deductions establish single corporate tax rate amen to that.
Add one trillion in revenue and net tax relief of one point five trillion.
Now -- that seems to be the sticking point in extra trillion in revenue.
We're gonna come from -- we now.
Well it is interest thing and I'd like to see the details myself because it's.
It's no small trip to be able to raise a trillion dollars in revenue while cutting taxes Detroit and a half dollars.
So I assume most of that would have to come from greater growth that would be implicit in terms of simplifying the tax code get in the corporate rate down.
Investment and consumption up that sort of thing so.
Jerry we really need to see the details there's been a great sigh of relief rally around but now people are start to step back and say okay.
Exactly what is -- so my best guess to you is that something along the lines of the Reid McConnell plan.
Will go forward some aspects of the gang of six proposal may be attached to that.
But that what this really isn't -- -- blueprint for the longer term effort which will take place god willing.
Later this year or after the election to really get the deficit under control.
Who knows -- S&P and Moody's in the rating agencies will give us that longer not because as you pointed out a downgrade.
Would be very self defeating in terms of higher interest rate cost -- -- more than offset any of these other reductions were talking.
Apparently had so much more to cover we just can't get -- Allen west that senator Bayh thanks for the help today we really appreciate it.
Always good to be with you.
Filter by section