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When both houses of congress had been denouncing president Barack Obama's 3.5 five trillion dollar budget and has been cold everything from excessive to miss directed.
The administration's counter is that it is part of a long term treatment to hear the economy.
Helping write the prescription for the nation's economic illness is the white house budget director Peter or dot.
Who goes up to Capitol Hill today to defend the budget he joins us this morning from the White House good morning.
Good morning all right so with you testified yesterday walked through some of this budget and it was interesting you said at one point despite what all the pundits say.
In fact the budget is not a big spending budget you walk through some of the statistics as it relates to GDP.
About those today.
Sure if you look at the funding for basic government operations are technically non defense discretionary spending.
In 2009 -- we four point 1% of the economy.
Under our budget over the next decade able averaged three point 6% IE it will be it will be reduced and by the end of the budget window there will be three point 1% of GDP.
The lowest on record since the data began in 1962.
This is not a big spending budget.
OK -- to get there you've got to do a lot of things that are not gaining much favor on Wall Street.
Including raising some tax is raising some capital gains taxes.
Some carried interest issues and -- when you look at this the list of industries that are impacted from greenhouse gas emissions to student loans.
The list unfortunately is you know gets larger and larger every day how do you sell this to Wall Street in the way that you're talking about.
Well let's split that up of that.
Ally in terms of the revenue which would begin in 2011 all we're talking about -- returning to the tax rates that existed during the 1990s which were -- a good decade not only for economic performance.
But also for the stock market.
And then in terms of some of the specific industries look we can't afford to continue funneling unwarranted subsidies.
To firms that are inefficient.
That's what's been happening if you look for example in the Medicare program.
Medicare Advantage plans that private insurance plans that cover Medicare beneficiaries.
Have been paid a fixed price that's a thousand dollars per beneficiary.
Higher than traditional Medicare were saying they should bid for the business.
I think that's very pro market and pro competition in pro capitalism.
And it doesn't make sense to continue having.
These large subsidies going in and on -- inefficient way when we can't afford them.
OK -- how do you explain the fact that the markets were down 25% year to date with the more they hear about these plants.
Well again I don't think that I don't think that has mostly mostly to do with the budget I think we're inheriting and we did inherit a very significant economic problem and a very significant budget problem.
I think the reactions of the budget have been much more positive than than you suggested at the beginning of the show.
And were focusing on -- the things that corporate leaders have long identified as being essential to our long term economic performance.
A better education system a cleaner energy foundation.
And a more efficient health care system that will bring down costs for companies for workers -- for the federal the federal government state government.
Our goal let's -- down some of those things because one of their big issues that's really upsetting a lot of people is that when you look at the tax heights.
A lot of people call this well we re distribution they call it class war port -- cold what you want.
I don't want to get into that here's what I wanna get into small businesses account for the mean largest growth of jobs in this country.
A lot of -- small business owners.
File their taxes as individuals making more or earning -- -- 200000 dollars a year.
How do you address those people who right now -- having to shut down their businesses every single that.
Let's let's be clear about this.
97% of small business owners would not be affected by anything in 2011 and thereafter there would be some revenue changes for the top 3% a small business owners.
You know I I started and and ran a small business myself the most important thing for small businesses.
Is demand for their product which means we need to get the economy moving and access to credit.
So if we will if we're we're -- focus on small business the most important thing is get the economy moving again that was the whole purpose of the Recovery Act.
And get credit flowing again the budget for example has 28 billion dollars in loan guarantees.
For small businesses through a program that has been proven to be effective in the past.
That's gonna do more to help small businesses.
Over the next year or two than anything else we can -- --
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