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Former Sen. Bob Bennett, (R-Utah), and former Sen. Bob Kerrey, (D-Neb.), on the need to rein in government spending.
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Welcome back check what's grabbing all the headlines today the senate close to granting eleven million illegal immigrants a path to citizenship.
President Obama and Vice President Biden meeting with the least chiefs on with gun control on their minds.
Notice -- having this same let white house Press Secretary Jay Carney tell you why.
-- The deficit reduction is not a goal unto itself.
It is sometimes the the holy Grail for some -- but the holy Grail for this president.
Is middle class security.
Sustained economic growth.
You -- -- -- -- -- -- -- But drug capital classic sign of ignoring the debt is something the White House is going to regret.
Former senators Bob Kerry and Bob Bennett with me now let's start with you mr.
Carey what.
To make -- Is treated now for the first -- First time well look I think he didn't get an in depth and -- control isn't a classes here it is something we'll strengthen our economy particularly long term.
Especially if you get after the the biggest problem which we've been -- -- for years and years which is.
Growing.
Long term cost so securing what -- -- -- middle class that should just -- -- Well because it -- -- deficit reduction will.
Produce a stronger economy.
Economic growth and and and and fiscal solvency especially in a situation where were -- but we're.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Yes senator Bennett.
In Dayton middle class issue here too is -- -- to fix these things that this is the big secret the White House is keeping from.
The middle class taxpayers got a raise middle class taxes either cut entitlements -- -- middle class taxes within.
Well but Senator Kerry has it exactly -- if the economy is growing.
More rapidly than the debt.
Then the size of the debt doesn't particularly matter.
I think -- so distressing about our present situation is that the growth in GDP.
Is at a lower rate than the growth in the death and that is the long term problem we face.
And if we don't solve that problem there isn't anything we can do to help the middle class or lower class.
Anybody gets hurt when the economy is -- the slow growing as slowly as this willingness.
And we are focusing on that -- -- instead on the extremes of saying -- I'm.
For cutting the deficit I'm for raising taxes it's the growth of the economy that's the real -- all these problems.
In a senator Carey.
Senator Colbert has said listen we already have a debt commission -- -- panels and commissions that the president has convened to over the year number presence have.
That's a commission -- to have is congress but you know of there -- one school of thought that says.
-- we can't do any kind of Medicare so scary form you can only do -- an odd years when there's no election coming up is that how restrictive we are as a country we'll get better constrained we are at the country right now.
Well -- in a bit as Bob those every year's an odd year -- ten myself -- -- it -- that we didn't hear the numbers Tuesday -- -- by this this thing is so difficult.
Today's.
Average worker pays 20000 dollars or excuse me -- told that cost per Medicare so scared of beneficiaries 20000 dollars the average.
Payment for every workers about 7500 dollars a year.
Now for those so secure Medicare beneficiary yes that's of people and -- yet -- over the eight next eighteen here's.
That -- gonna go to 40000 dollars per beneficiary and the amount of taxes paid for every working -- -- every working individual not -- -- Is 20000 dollars so it becomes a huge middle class.
Problem they are.
Middle class entitlements they are -- provide -- benefit but they're paid for largely by the middle class.
So you've got this I think terrible challenge.
I'm trying to over -- long term and Coburn actually addressed I think been better for the president.
Due to endorse the Colbern Durbin -- -- Social Security you've got bipartisan agreement on something it's that that that.
I think is very controversial and -- could have been the start to get afternoon time.
Nearly got some straight talk and Senator Kerry here senator Bennett you know the question is.
How can can you really conceivably raise taxes and -- -- example here's president George H.
W.
Bush.
You know we see but he -- historic events that collapse of the Soviet Union occurred -- his term the fall of the Berlin Wall.
Getting Iraq -- -- people what does -- remember for raising taxes when he said no new taxes made that pledge.
I mean if that's a shame for his legacy but you know the question is can anybody conceivably in this environment say we -- raise taxes on the middle class that there in elected office.
Well the reality is the present tax code is a disaster.
And yes you can raise tax revenue.
And you can get people behind it.
If indeed you do it by saying let's scrap huge chunks of the present tax code that make no sense.
And go in the direction of the tax code that is competitive.
That -- -- -- for the rest of the world are present tax code hurts us in the other countries and that frankly will bring down what -- called the compliance tax.
How many people do their own taxes now and pay.
Millions if not billions of dollars in the country as a whole to yeah somebody else to try to figure this thing -- I would pay a higher rate gladly.
If I knew that I didn't have to pay the extra 2000 dollars 2500 dollars a year to the accountant.
Just to tell me what is supposed to be.
Right Senator Kerry president's failure there is I think -- serious in the president's failure here on me is I think senator Bennett's right ending taxes have made more liars out of the American people than golf hat as.
-- -- -- But the question is Kenyan we if you -- -- Texas forming and it took years under Reagan to do tax reform started now right.
-- -- -- -- -- right although being after question here raise taxes -- class some in this this budget agreement didn't mean you've got a two point increase the payroll taxes started.
January 1 so.
My own experience of and you know Ben governor before is that if you're trying to balance the budget -- -- last thing you want to do is raise taxes first.
I demand and easy stuff is done so you think the president is completely wrong with letting spending getting out of control -- the topic -- -- and and that's that's a much spending get out of control but you're trying to bring spending down.
It's hard to do it's a lot easier to vote -- -- raise taxes on people over 400 and and spend more money which is basic but the agreement was.
If you try to take spending down particularly now.
When he got to take Medicare that Medicare is the biggest spending problem we've gotten it's also the most important middle class program that you're not gonna get a round of applause when you do that your polling numbers are probably not gonna go up -- probably -- a go down.
Great -- of that senator fact gonna give it final word.
I will step up as a Republican then defend the president.
In that the accusation that he's letting spending getting out of control.
As far as the discretionary spending is probably too hard on but I will get come down on him very hard but the fact that he will not.
Raise the question that Senator Kerry has just raised which is a mandatory spending mandatory spending have been inappropriate -- it's two thirds of the federal budget -- And everybody screams about what we've got to control what's happening in that 13.
But no the president in his inaugural said status quo as far as the mandatory spending concern that's where Israel prior.
His former senators but then Bob Kantor -- so good to be -- thank you so much through time next.
