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Brian Wesbury, First Trust Advisors chief economist, gives his ideas on where government can make cuts in order to avoid the fiscal cliff.
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All right forget congress facing.
Fixing the fiscal clip fiasco who could possibly say that here at money we've got it under control if no one else is gonna step up with a solution.
We'll get it started with our own answers about where to start.
-- spending cuts joining me to go after our ideas.
Brian Wesbury chief economist at first trust advisors Brian hate you so much for coming back -- the show.
Because you do it is -- -- -- I am so sick.
Of people coming on as saying what the other guy is gonna get ahead but not having a solution and I said that you know why.
Let's let's roll up our sleeves and get to work and come up with some solutions and I think that what we're talking about raising taxes.
We haven't really drill down on the possible spending cuts out -- example.
Senator Coburn put out a report showing 67 point nine billion dollars that can be saved over the next ten years by cutting non defense defense spending.
Among those things I mean it was a huge report more than 400 pages filled with all kinds of -- Some examples where a Smartphone app that alerts users.
When to take their coffee breaks.
I -- like is that things are can be got -- what do you think.
Hey hey well look they're -- the federal government is three spending three point six.
Or seven trillion.
Dollars and if you can't find waste abuse.
If you can't find a trillion dollars to cut.
They would not have a major impact on the economy I would be shocked yeah and so this this is just an example of -- I don't spend my day combing through the federal budget looking for those kinds of things.
But we know they exist and so.
Well over 22 point 3% of GDP right now.
This is a really damaging thing it is weighing down on our economy it's the reason we're not growing so I'm win view -- -- But let's let's doing he's saying he's not -- -- revenue problem necessarily.
It is a spending problem at home if your home budget is out of control.
And you're spending beyond your means the first thing you do is -- about.
Then maybe you gonna get an extra job the first thing you do is tighten about -- -- -- -- -- some other ones I couldn't believe this -- We could be saving at least a hundred million dollars having the -- is actually a lot bigger because.
Professional sports teams are actually non profits did you know that the NFL -- nonprofit the National Hockey League.
So they are exempt from federal and even taxes I mean this is this is one of those things I was very shocked by this because we're talking about raising taxes aren't.
Regular folks why we start with these -- Yeah well there's there's two points that I guy would make your number one.
If you added up all the lobbyists.
In Washington DC and sort of added all of their revenue together.
They would be combined one of the largest corporations.
In America.
They they get paid to find and carve out.
These special tax breaks special spending special subsidies special.
All kinds of special things in the budget that's what they are therefore it's a huge.
Industry yet they don't wanna go away it's eight you know if you don't you wanna argue if you wanna argue that corporations are strong what -- -- you know and they they run America which is what we hear from a lot of of people out there.
The lobbyists are a massive -- They are they -- and I want to get -- some of our other ideas before regret at a time.
I love the post office but we could save billions if we -- Saturday delivery it could be behind point two billion dollars by 20/20.
We are spending think some money on research that I'm not sure we need to deal.
It's only 547430.
Dollars but we are financing the research of dancing robots.
Four I don't -- I think we have a picture of them there and I know it's only a drop in the bucket.
But I feel like right before any Abbas go ahead and pay more tax anyone pays another dollar in tax right we should they look great.
I mean we're looking -- him on the screen and I feel like I don't need tax dollars.
Making dancing robots for -- I don't have a right iPod or whatever that is -- -- -- and I don't have an iPhone.
I don't need a role -- -- they weren't you know.
Yet exactly.
Balanced its budget when when spending government federal spending is over.
Nineteen and -- half percent of GDP we are way over that there is no tax system that we have ever devised in all of our history 90% tax rate 70% 1528.
It doesn't matter no tax system the US has ever had -- raised.
That much revenue -- we can't pot so we went to balance our budget when we spend the costs and clearly when you're spending three point six trillion there's going to be waste fraud and abuse.
We need to carve out every one of these -- that you pointed to a.
I would like we would all do it our homes that this was a household problem.
That is what you would do Brian west for you -- the voice of sanity please come back and help me fix this problem again.
We're gonna do -- -- Melissa because no one house says it's going to be up to you and me thank here.
All right I'm -- yet okay so you know when you're on a book tour.
You've got to be ready -- just about anything.
Including eating bugs.
And live.
