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Former CBO Director Douglas Holtz-Eakin on the need to reform the tax code as well as entitlement spending.
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Office of Management and Budget speaking out today against house budget leader Paul Ryan's new plans saying quote.
It is cutting deeper into the muscle in America needs to compete and win in the 21 century.
And we've got someone who begs to differ -- -- -- it is a former director of the Congressional Budget Office thanks so much for joining us today that we appreciate my pleasure.
Walton so what is your reaction -- that response.
-- am astonished by that response.
-- the president has yet to put out a budget that doesn't lead to a trillion dollar deficit.
Everyone knows that at this point in our nation's history.
We have too much debt we have a striking to turn in new direction or we will have a financial crisis -- utterly destroy our ability to compete in the global economy.
To do that we need tax reform.
This up plan contains a comprehensive tax from both the individual and corporate side and gets -- -- minimum tax.
We don't see -- the president's budgets we entitlement reform.
That this plan takes on the explosion in health care spending in both Medicare Medicaid.
It recognize the need for Social Security reform it takes off the table -- new entitlement that is a Health Care Reform.
And as a result it it gets rid of them nearly -- sort of all the nation's debt by 2050.
Leads to balance budgets and those -- the steps we need to compete the tax reforms essential for example so.
That's a very mystifying response and -- it comes from a source that Africa has failed to meet the challenge of even adopting its own fiscal commission's recommendations.
And it's next to a senate that hasn't had a budget in three years so let's well.
Talk about they need the commissions that were empowered by the president because sometimes I wonder whether the critics of this report of actually read it.
It reads very much like Simpson Bowles which was they get -- committee that was that was empowered by the president.
Was was congratulated by a lot of Democrats -- said -- I'm reading from -- Ryan's report now but it could just as easily come from sins of balls -- tax code.
With high rates and lots of loopholes benefits those who can afford the best lawyers and lobbyists in -- -- That's this is that that problem that we're trying to -- address.
Why this budget is say things it's a -- are doing but the Democrats who supported Simpson Bowles condemn the same idea from -- But what we see two complaints about about the Ryan tax reform and number one it's not gonna raise enough revenue and so this doesn't really address the fiscal problem.
It it's the same plan as Bowles Simpson and that plan raised a lot more revenue in fact.
So much more than many many people weren't comfortable with that so I don't think getting enough revenues going to be the problem.
That takes on the notion that it productive use of its nations smartest people is too.
A -- on taxes and to change one form of income into another for -- purely tax purposes.
We need to tax for the doesn't -- that has low rates and a broad base.
That is internationally competitive is this code would be -- and thus channels are best people to do what they do best invent things sell them around the world.
-- -- didn't get any traction many are saying the Paul Ryan bill is dead on arrival all because nobody has the political will to really make any big decisions I think the public is frustrated with that.
How do we get past that.
What.
I think the number one thing that -- that though Ryan budget does is says look.
We need to have a budget.
Because doing what we're doing now is dangerous to America needs -- social safety unravels.
It means we're not internationally competitive and we don't create the jobs we need to play Americans.
There are credit rating a -- -- risk that a debt crisis so.
That public education that says to the voters of America.
What we're doing now is dangerous to our future is the most important thing we get.
Then -- to be solutions I think -- in the house Republicans should be credited for putting out solutions and anyone who doesn't like them is obligated to produce their own.
That debate during an election year it is what you hope -- action there.
-- much easier to condemn a plan and come up with one her own Doug -- they get a very good to see -- thank.
