Gene Sperling on Debt Negotiations
National Economic Council director on 'Special Report'
- Duration 6:27
- Date Jul 6, 2011
National Economic Council director on 'Special Report'
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And Obama hosts congressional lawmakers Thursday at the White House to try to come to an agreement to increase the debt ceiling.
Joining us now to discuss the situation is the director of the National Economic Council.
Gene Sperling gene thanks for being here.
Thanks pressing -- us senator Dick Durbin earlier today said the framework of these discussions tomorrow at the White House should be essentially.
The bulls Simpson planned the deficit and debt commission.
That really wasn't talked about a lot after it came out is that the framework you're starting with tomorrow for a big deal.
I think what is the framework in what is similar to that is that he wants something that puts everything on the table you want something that is.
An honorable compromise of between these two parties that means that you -- As the president said check -- ultimatum check your politics at the door in common try to find out where's the common ground.
And that means of course you're gonna have to cut spending.
Very significantly to help let's get out of the deficit hole whereas but the president also -- all side she can come there with the idea.
That there can't be a penny of Medicare savings or a penny of revenues he'd been on.
Corporate tax expenditures.
We have to look for that common ground because this isn't just about.
Increasing the doubt limit -- preventing us from going into default.
It's about something much more affirmative it is about showing the world that evil with divided government we can come together.
And bring down our deficit put our fiscal house in order can give people confidence that the United States is as it always has been the best place in the long term investment.
Jobs and growth.
You know gene.
Some Republicans are upset saying that the White House is essentially false and misleading and saying that Republicans have not come to the table with any concessions.
Just a few moments ago sender.
Jon Kyl from Arizona and as you know he was a part of the talks -- Vice President Biden.
Said that tax revenue increases have been on the table tax increase is not.
But tax revenue increases have just take a listen to this I want you respond.
Revenues have been on the table.
We've been talking about increased revenues were not talking about increasing taxes.
But if the government sell something and gets money from it that's revenue.
If there is a user fee of some kind and we want to raise that to keep up with the times that's -- And if you add up all of the revenues that we have agreed to we Republicans have agreed to it's between -- 150 and 200 billion dollars.
So that this statement that Republicans are putting a gun to the head that they're not coming to the table with anything is that disingenuous.
Well listen not I was actually at the table for the Biden talks and we have a commitment that we don't talk about what was had not -- in the room.
I think there's no question that you have had.
Many Republican leaders make comments like.
No revenues head off.
But if if that's wrong we welcome that because as the president said.
You can't get a bipartisan agreement if you don't have a willingness for people to do things.
Even at that they don't want to put part of of a bipartisan compromise that's good -- we understand.
That if you're gonna do serious deficit reduction get their shared sacrifice and that -- shared sacrifice long.
The American people meaning that you're not putting all the burdens on seniors in middle class families.
And asking those were most fortunate -- have the most political power to take a pass -- not contribute.
And it also means telling each of the political parties that they're gonna have to go do.
Their base and say.
We compromise we did things we -- preferred not to but as a whole the sum is greater than the parts and this is good for the country so that's the correct that there are willing to put revenues on the table.
That's good news and we'll make it easier for -- a bipartisan agreement that will help this country and help economic confidence.
Let me ask you got a former member of the administration -- speaking at a campus progress event just earlier this afternoon Van Jones.
Said this that it's a moment of merit maximum -- for our nation.
He accused Republicans of destroying American values under the bus quote.
In the name of a fake -- deficit crisis does the president believe that this is a fake deficit crisis.
Actually not we don't agree with that in the slightest in fact.
I think the first thing I said here on even with you is that this is not just about.
Giving people the cover to vote for doubt -- that.
This president believes that to create an economic confidence we need.
To unleash funds and -- long term investments that creates jobs.
We need to show markets and the American people that we can bring down our deficit and put ourselves on a more sustainable course of course you have to do this in a smart way.
Not a way -- -- hurt our recovery and he wants to do things like extend the payroll tax cut.
How -- 150 million families make ends meet.
And make sure we had the demand to help.
Give that job creation the boost that it needs that's a bipartisan idea so this president believes very much.
That this is an affirmative positive goal to bring down our deficit in a way that invest in our future and is still helps this recovery create jobs.
I -- ask you one more thing -- about your former boss former President Clinton was in -- this past weekend was asked about we're.
Raising the corporate tax rate he said this quote.
It made sense when I did it it doesn't make sense anymore we've got an uncompetitive -- we taxed at 35% of income although we only take in about 23% so we should cut the rate to 25%.
Or whatever competitive and eliminate a lot of the deductions so we still get a fair amount and there's not so much variance in with the -- -- You agree with your former boss.
Well let me tell -- my current boss said at the state of the union and you can roll back the tape.
President Obama said at the state of the union he wants corporate tax reform -- -- reduced loopholes and and tax break so that we can lower rate have a more competitive international rates disaster that was able tomorrow.
You know that hasn't been as much on the table because that's been more of considered a a deficit neutral proposal I think what's on the table tomorrow for everybody.
Is how we can bring the deficit down how we can bring the debt down how we can get ourselves a more sustainable path that creates confidence and and growth and gives people -- as the confidence to start investing a long term job creation.
At the rate we would like.
Gene Sperling director of the council of economic advisors say -- thank you very much thanks.