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Fox News contributor Karl Rove breaks down the basics of sequestration and how its outcome will affect the American people.
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And thanks for -- is -- why -- the top of the stack you've heard all the warnings coming from Washington cuts.
For the Border Patrol in the FBI and long waits at airports even.
Even children will die from lead poisoning pretty scary stuff.
Problem is once again Washington.
They talk about cuts in ways that we don't talk if you cut your spending it means you spend less in Washington when they say they are cutting spending.
They're still spending more.
Joining me now former senior advisor to President Bush and Fox News contributor Karl Rove and Carl.
-- I love the way you break down your numbers I saw you the other day talking to Bret -- and a -- I was amazed.
That cuts -- cuts.
Please explain know.
Well what we're doing as we -- reducing the future growth of spending I mean think about this.
Since -- Obama took office the federal budget is gone from two point nine trillion dollars.
When he came and office to 3.5.
Trillion today.
So it's up nearly over 500 billion dollars close to 600 billion dollars and but what we're talking about -- war -- doing is not reducing spending from the current level but reducing the future growth of the budget.
If we cut 85 billion dollars from this year's budget to so called fiscal year thirteen budget FY thirteen.
The FY thirteen budget even after the cuts is going to be bigger than the FY twelve budget was.
Yes and that's a part.
I know people.
-- know this about the Washington speak how it's different than the way to you and I speak about our own pocketbook issues.
But they they get what why did the politicians come out I mean I think it's almost malpractice -- trying to.
Send a fake message to us.
Now -- -- there will be hardship business and look let's walk through the numbers I've got a couple of white boards for him.
That 85 billion dollars is only 2.3 percent of this three points nearly three point six trillion dollar budget we have for this fiscal year.
But we need to keep in mind the following present Obama said I don't want any cuts in mandatory spending.
Mandatory spending makes up 65%.
Of the budget.
And discretionary spending which is where we're making the cuts is 35%.
So that 2.3 percent -- actually is greater than 7%.
Of discretionary spending now.
It's one thing to say if you -- gonna spend a dollar we want you spend two cents less.
It's in its -- its is significantly more difficult to say if you're gonna spend a dollar we want you to spend seven -- -- But -- here's the problem more and more of the budget is gonna be on auto pilot.
Over the next decade 71%.
Is going to be mandatory.
And twelve only 29 project is and is projected to be discretionary so we just keep cutting out of the discretionary abortion -- were doing this year.
It's gonna get more more difficult to do so.
But but it can be done any can be done as long as we give our policy makers.
In these cabinet offices.
Flexibility what you think about this let's say each budget for each department has hundreds of different silos if you will buckets or.
Pockets from which and into which money is -- is put.
And from which money is taken for specific purposes.
The sequester.
Which was present Obama's ideas says we're gonna take -- across the board haircut on everybody of 2.3 percent of your discretionary money.
If you give the cabinet officials flexibility to adjust their budgets to to cut more deeply and less important things.
And cut less deeply in more in a more important things.
Then then you can deal with -- a lot easier so that the Defense Department resident -- You know bullets and jet fuel and training operations now.
You delay the purchase of some equipment.
Down the line that that's that -- giving flexibility the cabinet departments.
There's going to be a very important component of dealing with this and the Republicans are concerned about this and need to take the lead in giving the cabinet officials.
Particularly DO -- the flexibility to deal with these cuts -- Right I I like break these things down and make -- simple down don't know you are pocketbook level another word right if I said I was going to cut.
2% of my -- of my budget I would cut across the board I would cut going out to dinner but I would also cut my mortgage payment.
Which won't work -- -- mortgage company rose wait a minute you can't -- does so that's kind of a mandatory spending -- the other stuff right is is flexible.
What what's the politics of this because it's.
It mean to the Republicans benefit to say because I think a lot of people don't care where they cut spending right now at least on the the broader surface to say yes we're finally getting cuts because.
You -- you we've gone to the cabinet people before we haven't gotten any -- so let's go ahead and take -- the meat cleaver.
Right all a look at I -- -- -- that was similar house Republican leadership last week.
And -- I wrote in my Wall Street Journal column on Thursday the Republicans are united on the idea that across the board cuts are bad.
But this is the only way we're gonna be able to get spending cut it was the president's idea.
He's gonna have to live -- so let's cut 85 billion dollars.
I do think however -- Republicans are likely and would be wise to move flexibility language shortly me they can do it either on stand alone measure.
They concluded into what's called the continuing resolution they could even take the language -- of the actual defense appropriation in military construction bills and put them in.
To the resolution that's gonna fund the government for the balance of the year.
Giving the cabinet departments flexibility on the downside of it is is -- give President Obama.
The authority to maybe big cuts in spending that Republicans would like.
But on the other hand it puts -- the onus all of the president and these cabinet departments don't wanna cut across the board.
They want to take the less important things and cut them power to protect the more important missions and activities and well the department.
-- they're they're all part of blaming each other right now but I think may be a might turn that the tables in March and they say.
Were taking credit for fixing the problems.
And everybody's gonna -- is the president's gonna try to take credit.
The Republicans are gonna tried to take credit what's the outcome what's going to happen and you know right now people seem to be trust in the president more than Republican.
Right willing I think to sequestration is gonna -- we're going to be 85 billion dollars cut from spending to -- in the last seven months of fiscal year thirteenth.
I do think there's going to be flexibility language which is gonna put the onus on the president to do it as he says smartly not across the board haircut.
But at the end of the day and will all patting each other on the back but let's remember this this doesn't fundamentally Alter the situation that we face.
Right now for every seven dollars we taking -- in revenues were spent -- eleven dollars and the president wants to spend more he doesn't wanna cut he once did.
Raise taxes who's got more money to spend and the cuts Citi he is willing to tolerate or that he might be willing to accept -- all cuts in discretionary spending and as a say.
More more the budget you have nearly two thirds of the budget on auto pilot now it's not like your mortgage.
In the sense that you've got to pay it because you made that kind of commitment some of these things can be altered all of them can be altered some of them should be altered.
We can structurally changed some of these systems so that they are sustainable living maybe just one example.
Medicare.
The average American will pay a 109000.
Dollars in Medicare taxes over the course of their working career and -- Have benefits from Medicare -- 330000.
Dollars.
And take the 210221000.
Dollar difference.
And pass and under our kids and our grandkids that simply unacceptable and wrong.
But we can make changes in Medicare that will make it sustainable by introducing competition and markets and consumer choice.
But you don't we we need a president is gonna step up and say.
What we need to attack this problem from top to bottom otherwise our deficits are gonna continue to go up the economy slow and job creation be anemic number.
Well Karl Rove always good to talk you appreciate your input on this thank you very much you.
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