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Match for more on the greens as well as a check on our rating watch where Fox Business keeps track of the growing deficit -- result of government spending.
Democratic senator Kent Conrad of North Dakota joins me from Washington DC he is the chairman of the Budget Committee senator thank you for being here.
You get -- -- -- see those numbers -- looks like on a weekly basis at least we're starting to see.
Some improvement not huge but some improvement how do you feel about that.
Well any news that's good is important to us at this point in.
As most encouraged frankly by the retail sales number up by half a percent.
The last three reports in a row we've seen an -- -- so I think we're seeing the bottoming out process and starting to move back the other way that's good news.
All right -- let's get to a couple of hot topics on the hill right now.
One of the key issues he's the president came out on Tuesday said he was gonna support principles known as pay as you go.
Congress and essentially can only spend a dollar if it saves a dollar elsewhere said the president's.
Why you can bend at the greens have Chilean dollars and exemptions which include Medicare Medicaid Social Security the fiscal -- -- all those things were left out any new this just the other day.
Well you have to ask them because I think.
While it's very good that they are supporting statutory pay go that means putting it in law.
So that if there is an increase in spending it's got to be offset some other place.
I am not concerned about certain things being exempt that and as you described three and a half trillion dollars of items tax cuts and expenditures.
That are exempt them run the discipline of pago I think that's a mistake.
There's a perception senator -- this was clearly done is an appeasement to the blue dog Democrats pretty -- and there.
Well as you know I have been somebody been concerned about deficits and debt my entire career.
I've been very active on every front to reduce deficits and -- senator Gregg the ranking Republican and I have a plan.
To address policy because -- while it's important is a tactic it does not change the fundamental policy and unfortunately.
The whole -- been dug so deep in this country over the previous administration and of course of the economic downturn.
That we really have to make fundamental policy changes going forward to get this nation back on track.
Senator you know I mean look at the statistics you know this information -- -- -- deal mean the CBO the Congressional Budget Office critics of the deficits why averaged nearly trillion dollars a year over the next decade.
What do you do to would dresses I mean.
I you know what I -- president wants to go out there and say OK now pay go all but the bottom line is we can't fool you these deficits and it's it's only get more.
You know the the -- -- discipline was very useful the last time we had.
Budget surpluses in fact quit raiding the Social Security trust fund.
During the Clinton administration.
Pago was one of the tools that help.
But in our circumstance we need more than that we need to actually change policy we need to reform the entitlement programs and we need.
Fundamental tax reform because our tax system is only collecting about 75%.
Of what is -- And you know its interest thing if we just -- that what -- is owed under the current system there would be no structural budget gap at all.
And that would be without any tax increase just collecting what's actually owed under the current system so why -- it collected.
A lot of reasons profusion of these offshore tax havens abusive tax shelters we actually have a circumstance now.
Where -- some American companies are buying European sewer systems.
Not because they're in the -- business but because they're depreciating those systems on their books for US tax purposes.
Then leasing the sewer systems back to the European cities that built them in the first place.
That's the kind of thing I -- honestly I don't.
He allowed just -- Texas -- you know -- -- the hot topics obviously when you talk about taxes is the question of repatriation.
Costs and whether or not we will in fact.
We support repatriation do you support that -- concerned.
That was most of our multi national companies and many of them having the lion's share their revenue generator overseas that we could.
Different -- age won't -- caught corporations from remaining in the United States.
My concern is with fundamental tax reform.
You know we can engage in all these short term moves they don't touch the problem our problem is now so big.
With the retirement of the baby boom generation coming on with the deep economic downturn.
With the tax system not functioning effectively or efficiently or even fairway.
We got to make fundamental changes in this country we're gonna get back on track.
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