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The budget battle rages on but today a big move here the president for at least just three point seven trillion dollar budget.
And among other things.
A lot of attention is going to the fact that it would impose the so called Buffett rule that's raising taxes on people earning more than one million dollars a year.
It also imposes a 28%.
Cap on tax deductions and write offs but the White House says that the plan would reduce the deficit by one point eight trillion dollars.
Over ten years and that's in addition to.
Trillions of other dollars but that is of course from the administration so let's get the administration's -- great.
Story right here from Gene Sperling National Economic Council director and president Obama's economic policy assistant Gene Sperling great to have you thank you for being here.
Well thanks for having us let me begin quite simply.
Is this budget that came out today take it or leave it proposition or is the president open to negotiations and compromise when it comes to individual elements of it.
But it's a good question obviously this is not a starting point.
Because the president is keeping on the table his compromise offer to speaker Boehner.
At the time that the negotiations.
And did I would say each of us -- at the -- 45 yard line we were close this is obviously not the starting point of negotiation.
On the other hand the president is never one to say take it or leave that caller nothing.
Obviously you can talk about.
Different ideas what I don't think is acceptable however is for somebody decide they're gonna choose ala cart in other words they're just going to take.
The parts they like.
And not have the balance that the president wants and that balance means.
-- Have been spending cuts and that are.
Two dollars for every one dollar of revenue so this still has significantly -- cuts in spending and interest savings and revenue.
But also something that's constructed in a way that's good for our recovery good for growth.
Good for our competitiveness because -- overall purpose of everything we do on a budget.
It's helped the American people -- -- economy grow if this recovery moving to make us more competitive for the future.
We're putting up some of the bullet points here nearly 700 billion in new income tax revenue that of course is obvious that the Republicans would not like that because they they gave in on some other issues.
Before the end of last year but what what you brought up the word balance -- when you say balanced.
-- what happened to the term balanced budget you just define what you mean by balance and it didn't sound to me like the term balanced budget that's isn't that what we've really -- now.
Well what we need to do is get our fiscal house in order and what and what is most important for confidence for long term.
Is to understand is to have confidence that a country's debt deficit is.
Declining as a percentage of our economy that's the sign of sustainability at things are under control panel and at this.
Agreement this bipartisan compromise the president had offered speaker Boehner.
We're past you would see our our debt come down -- -- our economy and our deficit would be lower than 2%.
That would be enormous progress of course you know why the privilege of being.
He had been in this job 44 balanced budgets and obviously one -- Like to -- already learned this assumption -- move I was gonna say don't yes miss the era of balanced budgets and if you were able to preside over that why can't we get closer to that now I know we have because you're very tough situation you are moving you -- -- -- closer your calming down -- you have to do it fundamentally in a way.
That's going to be good for jobs -- good for growth.
And if you don't do it.
You know if for example that the kind of the -- you have on place -- the kind of contraction we've seen in.
In some other countries when they've been recovering actually not only hurts growth and jobs that actually backfires I can actually.
-- your fiscal situation.
So what you mean by balance is both of course some balance and fairness in terms of entitlement savings and a mix.
Of revenues but also balance in the sense that you've got to make sure.
That you have an overall plan that -- that sweet spot of giving.
This economy some momentum right now but also.
Letting people know that you're headed on a downward path in terms of our debt and deficit all right -- -- that gives you the greatest chance of getting top positive cycle of growth.
That could do even more to bring our deficit down.
Let me talk about something that debt.
People like to hear the word and although I don't know if they like to hear how I feel what happens after you do it but that -- cuts and within here you have.
A hundred billion in cuts to defense a hundred billion in cuts to domestic programs 400 billion in Medicare cuts.
200 billion farm subsidies and some retiree programs.
So now you've got some people on the left upset about some of those such as Medicare and the retiree programs.
But I just look at this and I say if you've got people on the left -- and you've got people on the right upset may -- -- -- on to something here so why not work on some individual points.
And bring that -- compromise back to Washington.
What were with you on that I mean I think fundamentally.
And and I know the budgets very confusing to people but I think what people do understand is that when you have divided government.
People have to be willing to work together and they have to come into a negotiation understanding then they're not gonna get a 100% of what they want and they're gonna have to even give.
On some things they deeply disagree on.
But what we have denying the Garnett right including the president absolutely look the president.
Decided to put in his budget something he finds very difficult and is not something he particularly likes which -- Changing the way that we do that.
Cost of living or the CPI adjustment.
That that was something that the Republican leadership said was necessary.
For damn if they were going to do the difficult thing for them of raising some revenue.
By lowering expenditures and loopholes and so what you have to ask of every of every one is.
You're gonna have to give a little and the real question is is overall.
This is the plan reflect compromise does reflect balance would we be better as a country taking that and moving forward.
That being stuck here or not deal with our long term challenges not investing having a sequestered that's hurting a lot of innocent people.
And I think -- the I think the public would like to see us come together on something.
I can tell you they would and maybe may compromise bloom what the cherry blossoms are planning right now thank you -- we agree yet.
-- thank you Gene Sperling says yes the president will be one to compromise on this we will wait and see because in this --
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