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Former U.S. Comptroller David Walker weighs in on the sequestration negotiations.
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Following and we're gonna move on -- the topic that everybody is talking about the sequester.
President Obama taking steps to break the stalemate calling both house speaker John Boehner and Senate Minority Leader Mitch McConnell of course.
They still don't have a solution to avoid it and what to do after it kicks in.
A week from today.
But you're in the right place because former US comptroller walker died he joins me now at a Fox Business exclusive what's your plants -- -- -- get out of this mess.
Well first let me tell Adam would go on over the -- Because there aren't negotiations -- on right now they don't trust each other.
There not operating in good faith.
And the Republicans I believe we're willing to allow some additional revenues through comprehensive tax reform.
And -- in addressing so called tax expenditures.
But they're not gonna do it unless it's coupled with significant reforms to Medicare Medicaid.
Social Security.
And and and additional spending reductions the American people want a comprehensive plan they don't want -- balance plan.
But didn't we may -- they hear that because the president his shed.
That they're not gonna look at the entitlements he also said they wouldn't budge on when -- fiscal cliff nightmare back in December we won't go above 250000 of course they moved.
That once -- -- he budge on this.
You'll have to because of math doesn't come close to working.
Look they're going from one short term crisis to another short term crisis.
And -- the fiscal clip for the sequester.
They're not dream dealing with the three drivers of our structural deficit known demographic trends 101000 people a day are eligible regardless those -- Medicare.
Rising healthcare cost and the Affordable Care Act is only going to complicate our life there.
And the need for comprehensive tax reform that will make the simple the system simpler fairer more competitive and raise more revenue.
So it it's time to get serious it's time to be honest with the American people.
It's time to work full time until you have a fiscal deal no deal no break.
Me ask you this we have a sixteen trillion dollar economy we're talking about 85 billion.
In sequestration.
Cuts why you know it seems as if that would not be such a big thing -- -- everybody is freaking about that.
Well here's the issue let's put it in context.
The federal government spends three point six trillion a year.
But the -- doesn't relate to that three point six -- -- -- placed a so called discretionary spending which is about one point three okay.
But we're halfway through the year so what 650.
Billion -- so Woodstock and about cutting.
85 out of 650 that's a pretty significant reduction pretty quickly.
What we need to be doing is actually cutting a lot more a lot more intelligently.
Including mandatory spending coupled with copies of tax reform.
Phased in over time when you say the only way you gonna turn this thing off.
Phased in over time so when you when we hear people talk about a grand bargain whether it means raising the age of eligibility for Medicaid.
Cutting or means testing Social Security benefits are you tell you about phasing that in immediately -- phasing it in over time for people like me under fifty.
Perhaps later on down the road.
For example Social Security raising the early in normal eligibility ages for retirement two years over twenty to thirty years pro respectively.
For example changing the subsidies.
For Medicare 95%.
Of people who voluntarily sign up for Medicare get a 75%.
Taxpayer subsidy for the premium.
Phasing that down and frankly out for people -- above a certain income level.
You can't make these types of dramatic changes quickly but you need to Macomb.
In order to get the miracle of compound in the start working for -- rather than against us.
David Walker former US comptroller I hope they are listening to what you have to say in Washington even though you are no longer the control -- -- appreciate your being here.
It is doing and we'll.
