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The latest numbers on the federal budget deficit out just a little more than two hours ago coming in at nearly one point three trillion dollars it is the second highest number on record.
Let's bring in Gene Sperling he's the director of the National Economic Council joining us now from the White House what the governor says it wasn't the worst team so that.
That we're grateful for but how -- we get this number down.
Well really we have to do two things one we have to make sure there's enough demand in the economy right now.
So that we do not even take a chance.
Of a double depth and that we get growth going again that's.
For very important.
War obviously our economy for jobs would even for our fiscal numbers secular way.
That needs to be combined with a long term fiscal strategy that doesn't get in the way.
Out of the recovery or -- The demand that we could get if we could pass the American jobs that.
But it should be something that happens starting -- -- thirteen and beyond that make sure that we get this deficit down which is gonna come down.
They get it down so that is that the debt is sustainable meeting that our debt is not rising as a percent.
Of our national income.
The proposal that the president put forward to the super committee.
Achieves that goal and what we really facing Washington right now is just the political -- to compromise to recognize that we're gonna make progress we need shared sacrifice that's gonna require.
Some revenues from some of the most fortune America adults and -- the require some entitlement.
Savings and both are politically controversial both are economically necessary that's the grand bargain.
That's the compromise -- president's been talking about for some time we'll let.
Let's talk about the revenue side for second because you had said if we do raise taxes on the richest.
That it won't be a drag on the economy but.
Somebody disagrees -- and it's not only beyond -- there's a there's a former president who does let's just play what Bill Clinton said the other night on David Letterman.
Should you raise taxes on anybody right today.
Rich -- poor -- middle class no because.
There's no growth of the economy.
Is Bill Clinton wrong.
Bill Clinton agrees 100%.
With President Obama they have the exact same DO.
Both of them believe that we should do nothing but try to inject more demanding -- -- eleven and when He well.
In 2013 only hope this recovery is taken hold that is when you start.
-- and higher revenues just from those who -- most well off.
The timing is one we agree and so let me know we're actually crash increases that's all until 2013.
That's that's solid promise from the Obama administration.
President Obama's proposal that people -- for it to the super committee does not raise any taxes.
Starting in 2013.
We started 910 year plan right that will be balanced and that is when we start asking for those who are most fortunate.
To pay a little more as part of a shared sacrifice plan to bring down our deficit Gina and exact same place as former President Clinton.
The president's plan is now being broken up into pieces as it's discussed from from your perspective what is the most important piece if you have to pick one.
That should that you believe should go for it.
You know I I think along the entire package is necessary and I'll tell you why.
It has a very important combination.
It has the payroll tax relief.
And the room and the payroll tax break for small businesses that can get out into the economy right now great significant demand and -- Well that's very important but the putting construction workers and long term employed workers back to work.
With rebuilding our country is also very important was this is a long climb out of the worst financial recession our country stations -- -- Since the 1930s.
So I really hope.
That we that that as we're going piece by piece that Republicans will -- Democrats that we need something bold.
On demand right now to get jobs going and that nobody nobody Democrat or Republican should look and see projections.
Of over 9% for unemployment next year.
Of of growth that sometimes production directed at one point 5% and say that's good enough were satisfied.
We don't need to do anything the next twelve to eighteen months we believe strongly you do and we are very much hoping.
That Republicans will start working with us in a constructive way.
-- on a strong American jobs that.
And another thing that both sides agree on is that there's a lot of money overseas about one point two trillion dollars -- a US corporations have overseas.
And if that -- repatriated it could create jobs here there is a bipartisan act now pending Democrats and Republicans.
To lower tax rates on repatriation down to five to 8% are you in favor of that to get the money back home.
You know they're just there's absolutely no evidence to -- gas.
But doing -- -- repatriation holiday.
Would in any way meaningful way -- create jobs for investment you have slightly Jamaica after what goes well I don't really -- -- -- -- -- question about are good but we'll only enhances CEOs -- who caught it can't say that they would open by different operations here in the US to have that money.
While I'm trying to answer you.
There is a very.
Hard rigorous -- -- that and 12004.
When many of these same CEOs pledge that if we get a repatriation holiday.
It would lead to new investment and jobs that it had zero impact in this came from.
A study done by one of president Bush's council of economic advisors -- forms in fact.
Conservative and progressive economists and think things have agreed that 20048.
-- no impact.
And the evidence which suggests would have less impact now so why president I would -- -- sitting.
They're already sitting on OK one to two trillion of afterward a very low interest.
Well they're refresh rate environment there are economists does not much there are economists as -- -- -- -- -- assessment I can tell you about lining.
There are enough so that both Republicans and Democrats are now sponsoring a bill to do -- if it arrives.
On the president's desk with the president Vito such a such a bill.
This is not something that we believe.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- This DO so we gotta look at where the actual -- -- and and out what the argument is that this would actually make a difference.
If if we're convinced otherwise of course we feel differently.
Right now this would be estimated cost eighty billion dollars to the taxpayer.
And do based on what happened in 2004.
No discernible positive.
Impact on jobs and invest we know you have to coaching but if there were closet test because you're right there were layoffs after people were allowed to repatriate certain profits from overseas that there were -- that you can't delay.
Any employees off if you repatriate the money would that be them palatable.
We there would certainly be more openness to looking at something that was really 100%.
To increases in investment and jobs.
That's not a proposal that we've seen so far -- we're -- we're trying to make a compromise right here we're trying to make it work that you were just trying to make it will -- cut the deal we're pretty much done causing it couldn't get some.
School modernization money in their two while -- -- -- -- gonna -- got all right thanks -- -- leaving -- have a great weekend.
Appreciate it thank you.