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Former Reagan Budget Director David Stockman on what is needed to rein in the government’s rising debt.
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Not create jobs.
Raising taxes on people make it harder for enterprises to grow and hire people.
I will not raise taxes on small business -- not raise taxes on business some out raise taxes on middle income people.
I won't raise taxes at all on the America people.
We left out there.
And take that Dave stockman.
Mitt Romney made it clear today that he has no intention -- raising taxes he will close a number of loopholes -- that will allow those who escaped the tax man to revisit taxman something.
Days old boss Ronald Reagan tried in the 1986.
But he's not gonna raise taxes so -- as you don't like that you think taxes have to be -- Yeah he's right in theory taxes are always bad they do -- economic growth they do heard in -- would you get -- other hand when you have a government spending three point eight trillion.
And you're running for president and you're -- willing to cut.
75%.
Of that as a matter of principle which is where Romney has won't cut defense won't cut Social Security.
Medicare is off -- twenty -- was open to curbing the growth in these program it's not easy it's not just security he has said that we've got to do something.
Did that it is it is at the point we're we'll meet the reaper.
And that we've got a slow the growth without cutting.
Benefits but there is something has raised it -- made it you know that's -- the -- this.
They're talking about a 75 year projection where maybe in 2020s.
33.
You raise retirement age I'm saying you have to cut it now January next year.
People who would have by this -- -- either you know visit at a different inflation environment you don't commander with me on during this isn't it you don't offended that maybe there's a -- just the formula.
So that it doesn't jump as high as -- -- as rapidly as dangerously as -- here.
You have to basically tell affluent people is 55 million on Social Security there's probably ten or fifteen that have private pensions and a private ask you don't get it you don't get it or you're gonna be cut back dramatically but you don't have to tell -- don't want.
Well the point is angle that we say it won't go well OK then the answer is if you're not gonna do that if you're not gonna take Medicare on right now not like Ryan -- 20/20 three but right now and begin to.
Make people pay much higher premiums and cut back on the benefits if you're not gonna do that.
You need massive tax increases to pay our bills in -- -- unwilling to have massive tax increases.
You're kicking it onto the next generation and the one after that but -- your take fundamentally.
Isn't a tax increase getting in the way of the bill budget director David Stockman.
Who argued you know charging more for something encourages.
-- right I mean to -- we never addressed the underlying problem with spending we keep spending especially.
There's more money's coming in that -- -- just explain most of the money is Medicare social security and defense.
You have a conservative candidate who doesn't wanna cut any of them do -- -- reasonable and and and maybe you're right I think -- Jimmy Stewart in new Israeli it and people are open to this they know yeah if he goes to young people -- look.
I wanna protect your Medicare your missiles due to the -- we're going you're not gonna happen right if we make these adjustments -- raise the retirement age.
Scale back benefits of the -- to do we save it for everybody I think did that argument.
Could even more.
Received well receiving its.
Yeah but if no one is even table in the argument if you're not willing to discuss it out loud with the American public.
I can tell me to get whatever overtures you've seen at a -- grinding cutting and known and not at all I look at his plan he doesn't touch Social Security doesn't get to Medicare and look at results.
-- -- I'm throwing granny off the cliff yeah I I understand that but that's how dysfunctional.
-- are alike are more than who's chosen more you know probably probably.
-- Barack Obama.
I don't know they're really care less I I think they're equally bad because really -- you -- think one on more bad than the other on the fiscal question frankly -- nearly broke.
In one of these says 98% of the put help people get no tax increase the other says -- hundred.
One of them says no defense defense increase.
Obama has not done nothing about defense in his entire term Obama's is -- Social Security cut Romney says I agree with user.
Medicare -- make a big fuss about and they I remind people nothing's gonna happen for the next -- -- you're gonna step this election now you're not I I see there is nothing to be gained on my issued this fiscal issue the core of what's threatening our economy our way of life for future.
I cannot see that we would make any headway so the worries -- You had more than three decades ago.
You still have today you obviously Kennedy written about this talk about this.
Painted a worrisome picture for Ronald Reagan back then.
Did -- ignore you then did -- think you're being a crepe hanging -- one.
Well the the thing was that was morning again America we had a clean balance sheet we -- -- -- trillion dollars worth -- national debt it was a small fraction of our GDP monetary policy Syriana's around you were -- and everybody now.
Now but it's thirty years later we've used up all of the balance sheet I know but at -- time did he say days.
-- -- -- -- You know he basically said one deficit was inherited from Jimmy Carter so let's -- -- And secondly let's cut fraud waste and abuse that he was unwilling to take on Social Security here so he was viewed as you boom your way at a something like this and that would solve the problem.
You don't demand not entirely which is essentially your argument today -- we didn't we had a bit of a -- yes but we also -- much money -- main job well we had a bit of apparently could -- boom we added two trillion dollars national debt under bush are under Reagan -- -- for bush years ask your favorite president.
My -- prisons Eisenhower at the moment really yes and may be Coolidge in Hoover wasn't all that bad if it.
We feel more take forfeited Grover Cleveland wasn't so that it well -- had to -- to differ.
