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President pushes low student loan rates in Sin City

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    Kentucky Senator Mitch McConnell reacts

  • Duration 7:09
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This transcript is automatically generated

Congress can't just sit on their hands.

So my methods to congress is let's get to work.

All right -- -- Obama just telling congress to do its job on these student loan interest rates on July 1 interest rates are set to double on federally subsidized Stafford loans unless congress acts.

And expenses were ready to act as planned act and -- multiple options for the president back.

Just waiting for the president to get on border simply respond.

He's the minority leader United States senate.

The -- -- senator reviewed have you.

Avenue in new you know we are the ones that work is a one out campaigning.

We sent him a proposal.

Last week to pay for something we all agree on the president governor Romney the speaker myself we all agree we ought to extend the current.

Student loan rate for another year issue's been out of pay 4000 passed the bill.

We've sent the president -- what we call -- force that he has advocated himself.

And said to him but some list because there's no dispute this is a manufactured crisis all right now.

It depends on who you believe on this that the cost of doing this would be blood anywhere from 68 billion dollars what analysts and honor what's the real number.

Yeah I think that's in the neighborhood of what it would cost and we all agree we ought to pay for what they want to do -- raise taxes.

What we want to do is make spending reductions and we've identified.

Enough spending reductions that the president himself authority.

Signed off on earlier this year as a way to pay for it and other words it's a manufactured crisis -- Okay but no one of the ways he's talked about -- -- I think was -- one way of federal workers could contribute more to their vengeance.

I would imagine that's not gonna go -- with the -- and another would include reducing Medicare or Medicaid reimbursements to the states that was something he was open to prior.

Until this election year started heating up so what happened on that one.

Well every one of the Petit fours that we sent to him last week TV has already recommended.

So we've taken pay for urged that the way to pay for those that we know he advocates.

And suggested that that's a good way to settle.

We're waiting to hear -- -- always -- -- campaign -- in that time no but our letter to them orders bond.

All right on.

Now this weights and and something down the road weights and that is the expiration of all the bush tax rates now you've advocated senator says speaker Boehner.

Extending them for one year -- you can be serious reform next year.

We're does that stand.

Well we know President Clinton and former Treasury Secretary Larry Summers.

Said the same -- the White House gonna walk them back but I think they were saying what they're really thought.

We know the chairman defenders said the biggest problems in -- on certain -- There -- a number of different things it could create uncertainty but one thing we could fix -- now.

Is to adopt the position the president had in December of -- when he can when he agreed with us.

That we ought to extend the current tax rates for every one for two years at that time.

Because the economy was slow at that time now it's interesting to note right now the economy is -- -- that it was in December of town.

So seems to me this is a place that we all ought to be.

We know that this.

Uncertainty this portion of the various that and uncertainties that are coming out as of the end of the year could be solved right now.

And everybody in America would know that doctors -- going on January 1 it would take about a year to do the comprehensive tax reform that we know we need to do.

-- say extend -- for a year we can really hash this out nicely -- the Nancy Pelosi is offered senators you know.

Extend their rates except for those earning over a million.

Dollars not those 250000.

Over in other words of finding did did -- out for cross that a million and over.

Would Republicans be open -- that raising those rates.

Nobody is an option debate among Democrats.

The White House is defined rich is anybody making over 250000.

Year is bigger -- and apparently senator Schumer affected your only Richard did make over a million dollar here are -- those.

We -- not.

It shouldn't be raising taxes on anybody.

Right now given.

This a tepid growth rate were experiencing even worse growth rate that was.

In December of ten when we decided to extend the current tax rates because we thought it was a bad.

Economy then.

It will take about a year nailed to do that comprehensive tax reform we need to do it's been since the Reagan administration.

That we did it's the code is a -- we all know that we well you know the great human.

In the Reagan administration sir and -- -- of the 1986 starts right now that in that they'll inherit and now we're closing a lot of little balls at the time the type of things that technically.

Had some Americans paying more taxes of the rich -- were trying to avoid taxes is Ronald Reagan's intensity at the time.

Not avoid doing some -- the president took his comments out of context to say -- -- -- -- support higher taxes when in fact that was not what Reagan was sank.

But there -- many conservatives in your party senator.

Who will argue that even closing those loopholes and credits is a tax hike and they won't entertain it so are you in a box because of that.

Yeah I don't know earlier talk -- -- I haven't met anybody in our party are outside the dog -- of that it tax code is enough.

And we ought.

Reform.

I mean when I have a corner I thought they all agree on -- down what I'm asking you adjusted to the the if you had you address closing loopholes and the like -- to get a tax deal extension now they're conservatives in your party would say well that's attacks I.

Can't do that -- -- I don't I don't like they would if it was revenue neutral a goal of tax reform is not.

To produce more tax revenue from the government as a result rates but to produce a growth oriented.

A tax system where the government actually ends up getting more revenue because you have a more dynamic growth.

Going on in the country I don't know much dissent among Republicans on that.

Issue and that is exactly the kind of thing that we think we need to pursue and frankly -- -- Democrats.

Who agree that it's -- time for tax reform I think that's something we might actually be able to -- -- a bipartisan basis is just you can't do it quickly.

-- -- on the back of envelope.

And you can't do -- between now and election so by extending the current tax rates.

-- be responding to what chairman Bernanke said about let's have some -- -- about what's gonna happen at the end of the year and it would also give us.

An extra year to get this job done but you're a good reader political tea leaves and votes and all that real quickly -- is -- your feeling that this is going to be a lame duck.

Congress issue that they are the ones are gonna have to be dealing with this because right now this environment nothing being done.

No -- way to do it now because the economy is sliding Europe could well have an adverse impact on our economy this is something we know would be good for our economy to extend the current tax rates.

I don't know that this is something we need to -- left the election to do -- -- do it now.

All right senator always pleases and thank you very remarked thank you know senators Carl well whatever.

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