You're watching...
Former Reagan Budget Director David Stockman on why the country will face a potential federal budget crisis at the end of the year.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
-- -- -- on opposite number is that crackling over the top we're getting new details -- -- about the president's budget that said to be released Monday.
-- trillion dollar deficits no end in sight to this morning that hundreds of billions of dollars in more stimulus.
And then of course the predictable tax hikes on the -- -- my next guest says.
If the president -- corporate CEO this budget alone.
But -- doesn't spend Republicans former Reagan budget director David Stockman joins CNN as we do a day when he comes on not only -- in -- very.
Big admirer of this and have been since I covered him in his budget -- Of course as just teen age group but -- Parkinson's disease eases a straight marriages tells unit as -- -- Arm so we're spending -- question.
I think you could see very good to be here so we know obviously give as soon as we got the early blueprint of this that it was going to be a bad budget it was gonna look bad -- -- You know talk a good but the numbers -- gonna end up certainly do what you would.
Some might argument in and I said this -- on -- here.
We're still playing games with stuff.
-- I agree I mean if anything they should be an alarm bells of warning us that -- may be twelve months away from a real.
Thundering disaster on this budget because remember.
In December everything expires I call it the great expiration date December 31 to twelve all the bush tax cuts.
The tax -- the reduction in state tax dividends capital gains the payroll holiday if they extend it will expire unemployment insurance expires.
The so called AMT Alternative Minimum Tax patch expires.
The patched.
Benefit the doctors under Medicare expires.
Now I mentioning all this because it adds up on a ten year basis to seven trillion dollars a budget impact.
600 billion the first year not.
Either they let all this stuff expire in the economy will be hit by a ton of bricks.
Is it all happens it wants.
Or they extend and pretend and extend all these deadlines and then they're gonna need to raise the debt ceiling by at least two trillion.
-- come on -- I'm not perform well.
Barely got it done and dog was right -- available labor barely got it done and I think.
This time I don't know where you're gonna get the votes.
To increase the debt ceiling.
Towards the twenty trillion dollar mark which is exactly where we're head in.
Under this Obama but nobody saw it happen but don't you think it's gonna be something that I think a lame duck sessions that -- do it.
A lame duck session.
I don't know it depends on the election.
But if we end up with a divided government I hope we don't that if we do I don't see how it's going to function and frankly if we end up with a Republican president.
And congress.
Is -- -- cause a total splintering.
Of the Republican Party because when they get to that point.
They're gonna have to face down the issue of taxes some mix of big spending cuts entitlement reform and market series of all -- -- --
