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Sen. Kay Bailey Hutchison, (R-Texas), weighs in on the 'Gang of 6' for the economy and job creation.
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Thank you very much let's bring in Republican senator Kay Bailey Hutchison -- Texas and senator lots of ideas are being floated it.
You come out said that you support the gang of six -- -- -- than their proposal owns -- several senators of -- that -- well.
-- but there are critics now of their planned -- say that this is basically gonna be larger tax increases that originally advertised.
If that is the case would you still support began to -- plan senator.
No I don't support tax increases at all and I don't think that we should be.
Increasing taxes in this environment.
I think it is very important that we.
Take parts of the gang of six -- group it's it's.
Elements they do have entitlement reform they have tax cuts which I think -- good.
They have spending cuts that are of media I think that half of it cuts that the houses and over are quite reasonable.
Because we have to send a signal to the market -- that.
We are going to cut spending we are going to get our fiscal house in order.
As we are raising the debt ceiling if we just raise the debt ceiling without spending cuts.
I think that is the that's the worst of all messages that we send.
-- you know senator Conrad has come out though -- said that he doesn't think that there's enough time now to get everything that needs to be done.
Put in place because again the caucus -- as you know we says that we can't cut spending change benefits and then basically overhaul the tax code.
In time for the August 2 deadlines you agree with them.
Yes we don't have time.
I think that there are good elements -- a gang of six planned but it needs to be fleshed out we need to make sure that had gains and dividends rates don't go up for instance so we've got to have the time I think what we're looking at is the potential for a short term extension.
With the media spending cuts.
And then that work out the longer term cuts and the balance that is put forward I hope.
With the time to do it it's gotta go through committees it's gotten -- They say that their plan is an -- it is not a legislative proposal yet.
And I think we've got to look at all those elements before we can do something long term.
-- -- the Democrats really are more in control this entire thing and Republicans are if -- Democrats say.
We will not pass this in any way unless it includes tax increases.
Should Republicans allow there to be -- default and allow all things to -- go to -- Well we don't want to default and we don't want tax increases.
I think we've got to come to some agreement and I think the president doesn't want to default so he's going to have to come to some agreement.
And I I think that tax cuts -- off the table for Republicans weird.
So concerned about.
Not having jobs created and employers are gonna have tax increases on top of Obama healthcare.
They're not gonna hire people that we've got to stop it right now.
You know I mean nobody wants tax increases senator but it seems like most of the plans are about 75%.
Spending cuts 25% tax increases.
It seems like that is a favorable.
This solution for you guys and it's more.
On this your side of of what you want to spending cuts.
Why can't that plan just why can't something along those lines be implemented why is -- this political gridlock there really is putting the good name of the United States at risk.
Well we don't want to put the -- -- the United States at risk which is why we're working feverishly to raise the debt limit.
At the same time that we -- doing significant reforms reforms in taxes reforms and spending.
And the longer term reforms and entitlements so I think if you are are looking at what we can do.
We can't raise revenue.
Having tax reform that encourages hiring encourages business to keep going and -- occurrences.
Families to spend money that's the way you do it with a fair tax code.
And I thought some of the gang of six proposals we're good in that regard.
Republican senator Kay Bailey Hutchinson of Texas thank you senator great to see you ma'am.
-- well as debt talk.
