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Committee for a Responsible Federal Budget Deficit President Maya MacGuineas on efforts to rein in the government’s deficit.
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Joining me now -- -- the -- as president of the committee for a responsible federal budget welcome to the -- great to see you.
Thank you are right -- what is start with the president guy he's out selling his jobs plan yet again here's what he had to say New Hampshire.
That's a very simple choice next -- You wanna cut taxes for the middle class and those were trying to get into the middle class.
Or do you want to protect.
Massive tax breaks.
For millionaires and billionaires many of whom want to actually help.
So glad the twenty twelve election underway theories you can see with the president -- have really campaigning here.
In Europe -- and are we better off without the deal from super committee is it possible that this could actually be good news rather than bad.
Absolutely not I think what we want I was -- deal from the super committee and we wanted a big deal so they were trying to save one point two trillion dollars.
We needed something about two to three times as large as that.
But right now where we are with the sequester hanging over our heads yes it is a -- spending a trillion.
Point two -- -- spending.
But it's the wrong way to do budgeting and like you said at the opening what we really need to be talking about is.
Entitlement reform and I would that tax reform that list well -- -- -- -- alienate question ending earmarks the budget just to get a question in here you know as we proceed.
I think that you know there is that it looks like there is some movement at least toward entitlement spending.
And yesterday I spoke to somebody has been accused of that's Grover Norquist from the Americans for tax -- And he says that at the end of the day what's going on here is that it's actually good news that we're doing some cutting even if it's in forced.
Here's what he had to say.
We do have some good news here because they couldn't come up width one point two trillion in spending restraint like they were supposed to have.
The Democrats spent their time trying to come up with one point -- -- -- in tax increases we now go to an automatic sequester.
Now as you know the president said he'd veto any attempt to.
I think the president is serious and I think he's right I think we shouldn't.
A full fledged comprehensive budget plans but as much larger than the savings maybe even -- themselves -- -- -- sequester off because it's not the right way to do policy.
But don't get credit that until we have a deal instead because it's the -- that's gonna push action.
What my can't -- -- a -- here in an election year I don't want and -- think the people actually do that.
I -- well you -- to be any they're gonna do it at some point because they have to.
I'm hopeful -- before the election because we don't have the luxury of time on our side there.
Now and actually we're we're facing what could be at yet another downgrade the nation's debt is that something you're concerned about two.
What I really want a plan out the cuts to make sure the right things are cut in the we take -- time we understand the results of our actions but at the end of the day is it more likely.
That that will find -- debt downgraded yet again.
Well I think if we were to get rid of sequester that would actually hasten the debt downgrade and I think there's a very serious chance that we will have another downgrade and markets are.
Very nervous about the US right now.
We shouldn't be letting anything like that happened that -- oil markets further.
We should be putting in place a long term plan to reassure them and -- some stability to the economy should we be raising taxes.
I think tax reform have to be part of any plan tax reform that raises revenues.
But only in combination with the significant reforms to entitlement that's how you get to the big deal I don't think this is about raising taxes to spend more I think it's about.
Raising revenues as part tax reform to help pay down the debt and that everything has to be part of that.
Big deal how thing is to be saving about -- thing that should billion dollars Fortis six trillion dollar yes 46 is what most experts a look at our debt would would say we need.
Keep in mind even if we save that we would still be borrowing more over the decade.
We're on we're on track to put about nine trillion more in debt in place over the next decade so we're talking about big numbers in terms of what we need to say well my thanks for coming on tonight we appreciate your help.
Banks to have.
