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-- running out of time it's down to the wire President Obama called leaders of the White House late this afternoon but then the grim news still no debt ceiling DO.
So how much time do we have.
-- going to counted -- thirteen days and that's until August 2 now the second is a day when we can borrow no war that's the ceiling.
But what about being bipartisan gang of six can it possibly plus some of the fire these senators -- they have the solutions.
But it's one thing this sixth and another to actually haven't so what is the real story.
Without the hope and all the sugar coating and joining us is Republican senator Johnson -- -- good evening Greta I he had -- gang of six to have the answer.
Well that wasn't what about deer laughter doesn't -- They've they've they've made a a good faith effort there's of their a lot of our colleagues who -- good amount of work into this but.
There's still a lot of details that we don't know and in many of us who have look at their proposal.
Think a couple things about it one is it freezes spending at 2011 levels which in shrines in -- CN.
The huge spending increases we've seen in the last two years and you wanna go back to what like okay well 2008 -- -- proposal could cap and bells goes back to 2006 but.
Anywhere we go back to before we started spending like we were killed drunken sailors here in Washington and secondly the on the on the revenue components it's still unclear.
Which baseline you're using and whether that constitutes I think we all agree constitutes a tax increase is just how big is that tax increase and that's something that many of us believe.
We shouldn't be doing in the middle of an economic downturn.
So that I understand it they gang of six planet is a proposed so it's not -- -- laid out instructions layman knows exactly what this is right its service.
This is what we like to do in general it.
-- -- -- handed out three page outline but it's not been put into legislative text there's no draft yet of it.
And so it's really hard to make -- -- valuation and we've gotten sort of conflicting reports about what's in it.
I -- -- and I think they're they're you know they're trying they're putting forward a proposal.
But we're gonna vote this week on a cut -- and balanced proposal which I think represents the best opportunity.
To really address in a meaningful way the need to reduce spending reform spending.
And and get this runaway debt under control.
And little sarcasm in my voice -- -- really likely to take this three page proposal to send it to the trackers that come back 12800 pages -- -- everybody vote on -- right.
Well that's a that's a potential problem and I don't that this house I'm getting it seriously now between now.
And the that the deadline -- August the second.
It's hard to feature actually getting.
The legislative language drafted getting the Congressional Budget Office to score it.
And and actually being able to allow enough time for senators and house members a look at a vote on itself.
I think it's highly unlikely that this thing is gonna come to any sort of conclusion between now -- when we face that on the second deadline.
If they don't -- -- spending cuts back the Bayside 2008 forget about all the other aspects so that we be voting for.
I -- -- -- deal breaker there's a deal breaker because you have to demonstrate that we're we're that we got the message that we really that the 24%.
Increase in spending that we've seen in the last two years.
It is just unacceptable unacceptable the American people at a time when inflation was 2% and they were tightening their belts.
-- is this spending like there's no tomorrow so I think you've got to go back and can demonstrate they're willing to cut spending now.
I cap but in future years and then put a balanced budget amendment in place so that we have the kind of discipline that so many states have.
And and they've been able to get their budgets balance so I think those are these of the components of the cut -- balance.
Approach and I think it makes the most sense the house passed -- last night we're gonna get a chance to vote on in the senate.
-- out in terms of tax increase if I if part of this -- six proposal is to eliminate part or all of the difference in some -- seduction.
Is that a tax increase in your mind -- in my view closing tax loopholes.
Is something I think we ought to be looking at a -- -- -- -- I'm in favor tax reform well it is and -- it's a comp.
And by reductions in rates.
Now the one thing I'll give the gang of six credit for as they did recognize that in order growing economy we've got to get -- marginal income tax rates down on both individuals and businesses.
But they also there are significant tax increases and there again this is a very.
I would characterize this as sort of a moving target because it whether or not this is a tax increase or not it depends entirely on which baseline you use if you assume that the bush tax cuts are gonna expire the end of 2012.
Then they can say that this would actually be a tax cut if you assume that that policy is gonna continue into the future.
What they're proposing constitutes a tax increase that's and that I think is what gives many of those concerns about.
What is it how realistic is that they're gonna vote on cut cap.
And talent how we're gonna get a vote in the in the senate on Saturday and the number anybody anticipates a number -- I'd like to see you got us hole all Republicans and -- -- -- some Democrats over you know clearly it's gonna take sixty to get to the magic number in the senate.
But I think the house demonstrated this is what they can pass this is an approach we now have an alternative out there.
That puts I think the president and the senate Democrats in a position where they're gonna have to answer was something because so far.
The president hasn't put a plan -- the senate Democrats certainly have put the plan -- we have had a budget now and over 800 days.
So they're going to have to react to this and they're gonna get on the record there any chance to go on the record on Saturday and cut -- and -- So after the cut kept -- -- boat accident that's not simply something symbolic gonna be beyond that is that when you do get the gang of six propose though.
That unless the things we talked about for -- -- -- spending cuts back that's dead in the water here I think that -- I know it's I hope that cut capital balance passes that is -- president vetoed if it does pass it and hey look let's say state it is going to be -- a statement didn't.
Do great to the American people that -- It's not gonna be a reality this what did you want -- I think it is a pretty straightforward serious meaningful proposal to deal with the spending and dead issue.
At the same time we raise the debt limit -- I think we have to we've got to address the debt if we're gonna raise the debt limit and there isn't another plan out there that does that.
If it doesn't pass then what what is the next step I'm not sure I know the answer -- this point.
But it's got to include some meaningful reductions in spending -- going to be very very hard I think to get any Republicans in the house of the senate to vote for.
I know he says no.
And they've made the announcement no about a lot of things have happened and even things with different candidates.
Have you reconsidered it just a little -- about right for present this as a part of it thinks that maybe there's still a chance you gonna run -- -- -- -- Well you got to -- here you should estimate that question I.
I asked him exactly.
But you know it were I guess is still in hours -- -- Marriott think development now got a very full field I'm I made my decision I'm comfortable with that's -- -- now I'm busy in the senate.
That's that's enough.
That's that is a I'm very busy in the senate and -- hoping that we can do something to -- -- -- -- balance this week and -- come August 3 Stanley -- see it look in the crystal ball.
Well I think if you -- -- -- my assumption again is that would something's going to happen.
Between now and on this the third -- but I hope.
I sincerely hope for the sake of the American people and for the good of this country.
That we do something about the spending issue this is a spending problem is not a revenue problem raising taxes like the president wants to do would be terrible for this economy.
-- thank you sir thanks Greta.
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