You're watching...
Former U.S. Dept. of Labor Chief Economist Diana Furchtgott-Roth, former Fed Economist Kevin Hassett and former Sen. Scott Brown, (R-Mass.), on the ne...
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
-- tonight with the big news from Alan Simpson and -- seen -- it today they introduce their new plan for deficit reduction.
And here it is in a nutshell it calls for overhauling the tax code and implementing new spending cuts.
Plastic -- the federal deficit by 2.4 trillion dollars over ten years.
This is more than the White House goal of one point five trillion.
But the bottom line is no -- will really be happy because it hurts both ways we have an all star.
Our panel here to break it down.
Diana -- -- -- -- is from the Manhattan institute and she's the former chief economist of the US Department of Labor.
Kevin -- -- is an economist at the American enterprise institute and joining us tonight former Massachusetts senator Scott Brown.
A Fox News contributor welcome to all of you tonight.
Great to be wouldn't you think senator brown I would start with you first this is your first time on the program so welcome.
You know really look -- we look at this new plan we say well.
Everybody's got again.
You know everybody's going to be upset and some -- an even even nursing balls they're in they're asking.
For the left to give even more here it's a big question is do you think that this even has a fighting chance.
Well first of -- I think is important referenced their involvement that they are trying to re engage congress which is really.
There on hiatus not only have they were literally on hiatus with a vacation but they've.
Checked out when it comes to addressing this very real issue we need to obviously get our debt and deficit under control as we all know.
And there's been no effort to work in -- truly bipartisan manner.
The president has not reached out to the moderates on the Republican side.
So I commend them for re engaging as you know -- working with this you know save the -- reduce the debt committee it's -- that's a group into -- group has been formed.
So there's something certainly I think we can find common ground but I'm not.
I'm not hopeful that anyone's gonna throw away there -- arrows yet and and get together and hammer things out it's it's a very very frustrating done.
So senator as you're speaking we were looking over -- and some of the guidelines of this new plan to cut 600 billion dollars from Medicare and Medicaid.
Add 600 billion dollars in new revenue from ending exemptions and tax breaks.
It cuts one point two trillion dollars in discretionary spending Kevin I put -- you also your first time on this program.
What do you make of this plan.
Well I think the interesting thing is that they've moved really dramatically.
-- their original plan and the republicans' direction.
Which I think probably reflect something of a disappointment amongst the two gentlemen in the fact that President Obama just abandon them you know he he released their report and then pretended that it never happen.
And President Obama has talked a good game about deficit reduction but he doesn't really seem to be seriously interested in that.
And I think that you north side of that is that his own guys are now abandoning ship for him and they're they're going to a much much more direct in the direction of the Republicans on the -- -- -- Diana isn't that isn't that part of the problem is that we're just not seeing any interest whatsoever from Washington.
I think that was seeing interest from Washington house Republicans passed a bill that would cut five trillion over ten years.
But the problem with -- and bowl ads that.
One point two trillion in cuts over ten years congress can't even deal with 85 billion this yeah and is resorting to the sequester.
The cuts in -- -- -- -- investments.
Right now we just had the doc fix we have this in the law every -- physician reinvestment disposed to be cut.
Every -- congress puts the money back and the 600 billion in tax reform.
It's not tax reform if you raise tax rates it's only taxable and if you keep it revenue neutral.
Broaden the base get rid of the expenditures so I think this is not going to work.
They have clearly not being mugged by reality.
So senator brown I want you to respond to that so we're gonna roll some sound -- -- -- he appeared on happening now on the Fox News program earlier today.
Saying why he thinks this new plan.
It's important lesson.
Where can the Republicans to do some revenues were asked in.
The Democrats.
To do more in the area Health Care Reform and to make Social Security sustainably solvent.
That pushes them both -- -- -- zone but it's -- enough.
To actually put our fiscal house in order and that's what we think is important.
Senate Jerry Brown your response.
Well listen months again I think there are certainly very hopeful in the not giving up in their re engaging congress.
But I agree with what Diana said actually when you're looking -- -- the -- -- if you -- -- lower corporate tax rates.
Without sorry you're gonna eliminate loopholes -- -- corporate tax rates and it's -- it's a non starter we need to do.
Do a whole host of things that are going to be not crush in the economy at a time when it's very fragile allies it is so there are certain things I think we can agree upon but.
Right now there is absolute gridlock -- Washington is a mess and we need to work together -- truly bipartisan manner as Americans first with our.
Backs against the economic go wall we need to do it together and I don't see anything like that happening any time soon.
So Kevin senator brown sounds very doubtful right now but -- -- timing is a little bit different this time around you know we're just days -- the deadline of this sequester on March 1.
Maybe now of the pressure will help something get Donna -- people they will take a second look at this Simpson Bowles plan number -- Well you know we can hope so but I think that really what's going on here is that Bowles and Simpson.
Are tired you know basically being a front for President Obama is an action.
And so they've come out with a proposal that you know sure there's 600 billion more in tax revenues -- Republicans would like.
But it's you know not that about a proposal really compared to -- certainty what the Democrats are proposing.
And it's really radically different from the kind of things that President Obama has been talking about and so what it means -- you know the fact is that the Democrats as Diana said they've -- not really been serious about this problem.
And it sort of pointed the Bowles and Simpson with great virtue but then ignored what they're saying now Bowles and Simpson -- are clearly aligning much more closely with the Republicans they've cut.
Their tax increase proposal by about it a trillion dollars over ten amid increased their spending cut proposal by about at the same amount.
And I think that that kind of movement means that it's gonna really put a lot of pressure on Democrats to try to do something to stop ignoring the problem but like the senator I think that they're gonna continue to ignore the problem.
Then I -- on the steps and an -- We've I think though we need economic growth.
That means real tax reform but -- also a lot of waste in the system.
That's mass transit -- it shows 20% of the highway trust fund when only 2% of Americans ride mass transit.
That's high speed rail.
That's twelve billion a year has spent on green energy programs says the military that has to spend 27 dollars and fifty cents a gallon on biofuels.
When they could be fueling.
A that ships -- diesel at three dollars and fifty cents a gallon and September and places to cut I know that we we I cut -- there we were getting -- gonna be a reason for you to come back and join his and that -- again.
We've got an -- our guys points.
All great points by everybody -- I was on it acts on pat on thank you all for joining us tonight.
