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As talks on the looming fiscal cliff appear at an impasse, Sen. John Cornyn wonder what's Obama's plan to avert the crisis
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Senate seats efficacy of what does your understanding in the president's plan is going to -- this -- negotiations.
Will my understanding is has no plan.
To deal with the fundamental problem that is the trillion dollar gap between what the government brings in and what it spends commonly known as the deficit.
And the cumulative debt which is sixteen trillion dollars as rules or.
Unsustainable.
Programs like Medicare and Social Security which need to be put on -- sound fiscal path or else we're going to be it would keep our promises to seniors.
The president just keeps demanding more in the way of taxes.
And the problem is that -- higher taxes -- ruling in the depressed small businesses and investment which were depending upon to create jobs and fragile economy.
So what I'd like to see is what his plan is to keep saying more more more when it comes to taxes but we have a fundamental problem was spending.
Our taxes.
Are not the fundamental problem.
-- in terms of his normal -- as you characterize it in revenue was talking about now.
Increasing taxes and -- the tax rates go -- people make when it to a 50000 dollars a year as I understand that that's about 85 billion dollars a year.
But to fund the government about eight days.
85 guys a lot of money but if you.
Actually look to government waste even senator Tom -- is identified.
Twenty billion dollars recently in -- and anyone thought about going to get this revenue.
From the waist and seeing just how much we really need.
Well the promises usually been that if you raise taxes of this spending cuts will come later.
And they never seen them become manifest -- not even spinning cut special weight well yeah I mean we've.
Wasted enough fraud and abuse or the famous three.
-- horsemen of of cuts.
But the practice that.
Many times are harder to get to that it would appear but I I think Tom -- has done a great service by identifying a lot of duplication and waste in the government including in the Pentagon on the defense hawk but I think the Pentagon needs to do a better job when it comes to handling the people's money to.
But you can't get the sort of you can't close that gap between spending and the debt by just raising taxes on the two upper income tax bracket you gonna have to deal.
With more fundamental ways to -- the spending curve.
As -- to deal with our broken entitlements like Medicare and Social Security.
As you stand here today what do you think is likely gonna happen are we gonna go off the fiscal -- -- this -- -- all last minute hostile.
Between that Galen here in -- every package together -- not very satisfactory -- anyone's really not likely solve our nation's problems.
Well I'm I'm feel like it's more likely than not we will go off the cliff and I'm not convinced that's not the president's plan.
Patty Murray one of the leading Democrats give a speech a few weeks ago at Brookings institute said.
If they had to go off the fiscal cliff in order to generate additional taxes that they want.
They would be willing to do so.
I think that's incredibly reckless because a lot of Americans are going to be put out of work.
The economy is gonna crater we're going to be in a recession again and I think once you start down that road it's hard to know -- Actually expected -- -- -- got this good -- man standing in the defense industry if I lose your job -- -- -- -- -- there but I'm curious to supposing you just you know you're shopkeeper in the middle part of the country we've got this booklet what does it mean for you.
Well we know that the economy needs to grow at 3% probably closer 4% or better in order to create new jobs to make up for the increase -- population.
And right now our unemployment rate has been.
Unacceptably high for a long time around seven point 9% and -- economy's growing you're not creating the jobs necessary to bring the unemployment number down.
What it means we go off the cliff is the economy's gonna quit growing as fast a matter fact it will go on -- negative growth or recession.
A lot of people will be put out of work and certainly no new jobs being created because of the uncertainty of this fragile economy.
What the president wants to go -- that this Atlanta mayor frank -- with the why we are why we have this brinksmanship.
Well because I think that he sees this -- his ultimate leverage I think he also thinks he got some sort of mandate.
From the election which I think he's mistaken about we got exactly the same after the election that we had before and that's divided government.
Which to me means that.
The American people trust neither political party have all the answers.
Last time we had the president's party complete control government for the first two years the Obama administration we've got obamacare.
We got the stimulus we've got a lot of spending.
That's contributed to the death.
So what we need to do is a reasonable thing that is try to work together to try to bridge our differences you're right nobody is gonna get all of what they want.
But I think this is an area where the 8020 rule might apply you get 80% of what we.
Finding common we need to do and leave the other 20% -- -- Is the other 20% for you and other Republicans the willingness to budget time the tax rates for the wealthiest Americans or that not.
Not within that 20% margin you're willing to give up.
What -- said -- additional revenue is on the table but that would primarily be by capping deductions for wealthy do Americans.
The problem when you raise tax rates is it impacts a lot of people who -- business income.
On an individual tax returns sole proprietorship and partnerships subchapter S corporations not to get down to down and dirty.
In the in the weeds but the fact of the matter is it will depress economic growth which is something we need to grow in order to create jobs and put America back to work.
I switch topics one last question with a disability for veterans there's been an incredible backlog for disabled veterans.
I understand that at least something is -- forward to try to address an issue.
Well today we passed an amendment that I offered to the defense bill which would.
Create up.
Force that the Veterans Affairs Department create a plan to deal with this unacceptable back more about 600000.
Backlog VA claims which means it and -- at least 125.
Days.
There's a lot of veterans who -- not getting sort of service that they deserve -- that they burned by the by their -- to our country.
Everybody on board on that one pretty much to -- like -- wants to withholding some veterans gorgeous -- look right but for some reason we never could get a plan out of the Veterans Affairs Department this.
Legislation which passed 95 to zero in the senate.
Will compel the veterans administration come up with a plan so hopefully chip away.
At that backlog of people benefits -- -- -- senator thanks -- thank you very much.
