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Sustain deficits like these without end.
Contrary to the prevailing wisdom in Washington these past few years we cannot simply spend as we please.
And -- further consequences.
To the next budget the next administration or the next generation.
President Obama called -- Washington leaders to break from old habits at its fiscal responsibility summit yesterday.
As a nation faces a potential one point three trillion dollar deficit.
The president will address congress for the first time in his presidency tonight.
Where he will not only talk about details of his budget proposal.
But it also tells -- cuts are going to be made and how the budget's gonna be slashed in half over the next four years or how the president plans to get this done I'm joined by democratic representative Joseph stack of Pennsylvania.
Who serves on the small business community got committee.
I just wanna start -- and sees that by asking you how we're gonna really get this that how we're gonna spend all of this money and cut at the same time.
I think there's a bit of optimism by the goals of present a -- I'd like to be up front about that but we must begin to do it.
I think that.
It first issue he has to address is health care Medicare Medicaid.
That's the real ball it's coming down the bowling Alley out -- following that has to be Social Security.
Now the president has talked about a number of means such as the war and I Iraq dwindling down.
With such as addressing Medicare Advantage where those who are in private plans get in -- Medicare.
Actually weak government pays twelve to 13% more let's -- that down but the issue here is how quickly can you really do it if you remember.
Back in 1937.
President Roosevelt from third 1933 to 1937.
Driven unemployment in -- depression when 27%.
Down a nine and a half percent and Danny raise taxes.
A payroll tax the first in our history and a corporate tax my caution is this we need to get a pay as you go government.
But if you even on the rich all of a sudden if we're not out of this recession begin to raise taxes in 2011.
Then you can have a very similar.
-- endurance to our recovery -- caution.
That doing it is absolutely critical I voted for page of government when it came down here both me need a mandatory discretionary spending.
But let's get out of this recession persons like caution let's watch before raise taxes on anyone.
Representatives is that to get out of this recession and let's bills like some desperate things are gonna have to be -- have to go on here.
You are the highest ranking member in congress of the with the military back when you were rear admiral there's talk about really taking a serious night to the military budget.
Do you think that's wise in -- -- before that.
I do think we actually need to -- do how we do our procurement.
Look we have this tyranny of optimism.
In the defense industry and and defense I know I ran in 878 billion dollar warfare program.
When I sat back and looked and ran the numbers four years ago.
We could afford not the 313.
Ships within navy says they need twice as much procurement.
Going up from eleven billion dollars two years ago to 22 billion dollars per year.
We could afford probably 240 to sixty ships which is more than sufficient if one of the things that I Iraq.
Hindered us from accomplishing is -- And that's a transformation into what is called a -- a knowledge based military imagine Charles if we had known.
That Saddam Hussein was gonna go into Kuwait because we had the satellites and the means to know.
Then we might not think they will be there today you know and so my issue here is what are we per carry were still measuring our military by how many.
Rather than capability.
Commercial world -- changed to a knowledge based.
Industry and the military ask -- that transformation so if he does it right.
And transforms the military -- actually give us a better military.
And a -- -- thirteen ships they can't communicate with one another -- and so that's a transformation it's actually needed right.
And let's talk about going through this budget line by line because that was what was advertised that we have these big issues that that's Medicaid Medicare which he just brought up.
Isn't realistic that there even on -- cuts line by line and do you think that's possible.
In if you were president where would you focus if you were going through this a budget line by line.
I don't think that you'll get the types of change in behavior.
And the new types of approaches just -- going line by line with some savings be reached without question.
But what really needs to be done is let's take Medicare right now it's fee for service if you're sick you go when the doctor takes care of you.
There's no incentive in the entire system.
For preventive care imagine if someone was found as we passed the bill two years ago but never got through the senate.
That everybody reaches 65 years old Medicare age gets a free call -- rectal.
Bone density etc.
all those exams.
If you find out that they had diabetes and you make sure they're taken -- Madison.
They don't go in years later to have -- -- grant mutated will -- pay for a prosthetic the infection that I'm right and that probably occurs a wheelchair at sector.
That's the type of systematic change which I think is why President Obama saying I'm going to do a ten year budget because you don't see those great savings.
Until a few years down the road with some type of initial investment.
If he doesn't do that we will never reform health care line -- line looks good politically it won't give -- -- -- make changes.
As I even just mentioned previously -- Defense Department.
Representatives -- sit on a small business committee I haven't seen any thing if anything that's been presented from the White House so far the help small business the backbone of this country.
What's going on there.
I think we have to.
Truly do what you just brought up Wall Street Journal has a wonderful article -- editorial on it today about how do you spur entrepreneur or ship.
If tax incentives have to be given to anyone it's the small business the Bush Administration unfortunately cut the SBA small business -- and budget by 40%.
We need to reinstitute.
And actually beginnings it subsidies -- entrepreneur wars where they know that potentially you could have a new launch minority pays no payroll tax -- gets that company going.
70% of all jobs are created by small business -- I fought hard to get a small business community.
And that's where we need to get as we get through this recession.
We need to stimulate our economy to create jobs with small business incentives and by and large.
It is the government giving them subsidies and or tax breaks.
That's where we've really got to do it.
-- and -- -- that thank you very much this morning really appreciate it.
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