Do Spending Cut Proposals go Far Enough?

This transcript is automatically generated

Well when it comes to the fiscal -- Getting comical out there planned aid planned need seeing we're gonna -- letters pretty soon.

The problem is that Capitol Hill has grown so accustomed to expanding government spending even the Republicans hardly know how to cut the flow of tax dollars.

How bad is -- well let's be clear since 1974.

Or for nearly forty years the baseline of federal budget automatically increases.

Every year.

That's before anybody even cast a boat.

And that makes it easier for politicians to look like they're cutting spending when in fact they're simply cutting the growth of spending.

It's all gimmicks.

Of course we haven't had a budget submitted to the senate in four years in action in Washington is made even worse by the federal bureaucracy it bonds.

Every single day congress misses the deadline to pass budget.

It takes that financial -- on taxpayers take a look at this just four times.

-- times in the past 37 years nearly two decades has congress passed a budget bill before the start of the new fiscal year now.

As a result as you might expect everybody makes changes federal contractors.

Pad their bids to guard against budget and certain -- agencies right expense -- month to month contract -- it up.

Annual once which would be cheaper.

Government bureaucrats make hasty or unnecessary hires because of the and certain date.

Now all of this is according to a guy named Philip -- choice the University of Maryland professor who has studied the bureaucratic nightmare.

The solution for all this mess is more gimmicks according to Washington.

The two plans on the table from the president and house speaker Boehner do precious little to solve the big problem.

Like our nation's sixteen trillion dollar debt look at these numbers.

Now Obama's plan.

One point two trillion in revenue increases that's individual and -- taxes going up.

And one point 22 trillion in spending reductions totaled 2.4 two trillion that savings overall.

Now on debaters planned its one point.

That's not the right graphic right there.

Bidders plan is one point 263 trillion in new tax revenue one point four trillion in spending cuts for a total of two point.

663.

Altogether that's total savings these numbers were put together buyer brain room.

If you read in the -- savings from ending the wars in Iraq and Afghanistan and lower interest payments on the nation's debt to -- line up like this.

Where we -- a prom with graphics are what.

I -- this.

So look at these numbers over ten years -- Obama plan.

Four point six trillion Boehner plan about the saying there's not much difference here.

And given the fact that we will add another almost ten trillion and deficits over the next ten years.

Whether either of these plans are enacted we will still have 21.

Trillion in debt by 222020s.

-- That may get to those soldiers again.

All of which makes me think banks Washington for nothing is -- to precious little depicts our financial mess but and height -- Make it higher.

Yet next.

All gimmicks.

Watch Live

Do Spending Cut Proposals go Far Enough?

Details

Clips

Latest Video

Did We Get Any Answers from the IRS Hearing?

Former IRS Commissioner on the Scandal

Why Did No IRS Employees Come Forward?

Will Scandals Hurt the Democratic Party’s Future?

Lack of Money: Politicians Favorite Scapegoat?

Sexual Assault Crisis in the Military?

No Signs of the Markets Easing?

Rep. Forbes: Culture of Arrogance in White House

Luxury Hotel Goes to the Dogs

NYC Photographer Selling Photos of People in Their Homes?

Seniors Delaying Paying Off Mortgage to Invest?

Florida Shortening Yellow Lights to Boost Revenue?

Transcript

Recommended