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Rep. Nancy Pelosi: Spending cuts hinder growth

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    House Democratic leader on 'Fox News Sunday'

  • Duration 14:42
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When President Obama delivers his state of the union speech Tuesday one big issue will be sequestration.

85 billion dollars an automatic spending cuts due to -- in March 1.

The White House now warns this will mean damaging layoffs of teachers law enforcement and food safety inspectors.

And the Pentagon will be hit two.

I propose a mix of spending -- and yes more taxes through limiting deductions for the wealthy.

I sat down like Friday with house democratic leader Nancy Pelosi and asked her about the fast approaching that law.

Congresswoman Pelosi welcome back to FOX News Sunday welcome to capital.

At the White House says sequestration.

Will have a severe a fact on many Americans.

House Republicans agree.

But they say the answer is to find other spending cuts not tax hikes.

Well I think that that that sequestration is a bad idea all around that should be something that is out of the question.

The fact -- we had plenty of spending cuts.

One point six trillion dollars in the budget control act.

What we need is growth.

We need growth with jobs and if you have spending cuts for education of our children and other investments like the National Institutes of Health.

Where you are hindering growth you're not going to reduce the deficit.

So what we do need is more revenue and more cuts.

But I would like to see that it's in a big balance bold proposal.

Short of that we should we must do something to avoid the -- But here's what house speaker Boehner said this week.

At some point Washington have to deal -- that spending problem.

Tom Watson kicked his can down a -- 22 years and I've been here I've had enough but I'm back.

Congresswoman let's look at the numbers are you really saying that in a government that spends three and a half trillion dollars a year.

That increase federal discretionary spending by 14%.

Over the last four years you can't find 85 billion dollars to -- to avoid the sequester.

Well we have made the cut in terms of agriculture subsidies -- tens of billions of dollars in cuts there and that should be balanced with.

Eliminating subsidies for big oil why should we do why -- we.

Lower pell grants and instead of eliminating the -- is subsidies for big oil but -- I just can't spend it.

85 billion dollars and a three and a half trillion dollar.

Government but let let's just back up from there and with all due respect to the speaker that the what he said it's not the gospel truth.

The fact is that a lot of the spending increases came during the Bush Administration.

To unpaid for wars that we've got -- -- engaged him.

Prescription drug plan that added an enormous announced they're spending and that -- tax cuts for the high and that could not could get -- it.

Create jobs and create revenue coming in to.

But I totally actually increased five trillion dollars since this president -- well part of that is a from seeing what we had to do to avoid.

Going over the cliff -- recession a depression.

Yes we had been the Recovery Act which saved or created three -- half.

-- million jobs you know the record of job growth in the private sector has been consistent.

For many with a record number of of months.

So again we have to make a judgment about.

What do how do we get growth with jobs that's where the real revenue comes from you don't get it by cutting down your seed corn cutting -- education.

Cutting back on our investments in science and National Institutes of Health food safety you name it.

So it isn't as much a spending problem as it -- say priorities.

And that's -- -- budget is setting priorities that you talk about.

Growth.

Even Christina Romer the former head of the council of economic advisors for the president says you increase taxes.

That also hurts growth.

Well -- and it's about timing.

It's -- bad timing and it's about timing as to when you -- -- as well.

We -- Q what did you what did the fiscal cliff -- raise taxes 650 billion dollars right away I think.

Yeah and that was a very good thing to do on people making.

Over.

The high end.

It in our.

A population.

So here here's the thing go.

We are here to have a budget that has revenue coming in that has investments made into the future.

We also want to make decisions in those two areas where growth with jobs are created because more jobs more revenue coming and nothing brings more money to the treasury.

Of the United States.

-- investment in education of the American people.

Think -- recognize that what cut which cuts really help us in which -- hurt our future.

And cuts in education scientific -- -- and the rest are harmful and they are what are affected.

By the sequestration.

So it is almost if false argument to say we have a spending problem -- budget deficit problem that we have to address right now we have low interest.

On the the national debt and is a good time for us to act to lower that deficit we think that deficit and the national debt.

Sorry tomorrow all levels we think they must be reduced -- sick and tired of paying interest on the national debt.

And that's 15%.

That's a large percentage of the budget the interest on the national -- it's lower now because.

Of the lower interest rates.

But again all -- all -- would say as we got a three and a half trillion dollar budget and they're talking about 85 billion dollars in cuts look -- let's go to the taxes though because they.

We -- spending we agreed to one point six trillion dollars in spending and discretionary to -- -- the sequestration is just spending cut back at it secondly we have the gone to -- Medicare.

And had savings of over a trillion dollars in Medicare already want to say we.

I mean the Democrats.

And what the what the Republicans budgets are proposing this to.

Make a voucher of Medicare no longer making and a guarantee that other things in this discussion.

Is that I think the American people for what -- fully we're gonna help them understand what it means in their daily look.

Let's talk about -- you keep talking about raising taxes you talk about making the wealthy.

-- -- -- -- -- the questions first -- but let me ask the question you keep talking about making the wealthy pay their fair share of taxes.

The top 1%.

In the top 1% -- 37%.

Of all federal income tax at the top 5%.

Pay 59%.

Of all federal taxes if you took the totaling com.

And everyone making more than a million dollars he -- taxed at all at a 100%.

That's only 726.

Billion dollars which is less than the projected deficit for this year -- the bottom line congresswoman.

Is you can't raise taxes and up to solve the deficit problem.

Nobody is saying they were saying it has to be balanced now on this subject.

Of the high end we're not time that raising rates we did that we -- Eliminated the high end tax cuts of the bush years which only increase the deficit and didn't create jobs we kept the middle income tax cuts.

The what we have in our proposal that congressman Ben Howland has put forth our top Democrat on the Budget Committee.

-- to say that was going to eliminate subsidies and they thought that gives us a lot of money eliminating the subsidies for big oil.

With all we also have the Buffett rule which says all of these high income people.

Would pay the minimum they would pay.

I have to -- raising taxes on the wealthy no you know -- you're saying that they should pay their fair share which is 30% which is even lower than 39 point six which is there.

The rate than that bracket they're just saying that if they have a deduction you get from him and Tony Morgan and it just so many loopholes.

That's -- that is items that are on the on the books again.

The -- did anything that.

But the point is that you can't.

Raise enough money coming to the main driver.

-- the dad is entitled 60%.

Of our budget -- our spending is on entitlements.

When Medicare started life expectancy was seventy it's now seven -- nine.

Don't you have to raise the eligibility age and slow the growth of benefits isn't that the way to deal with the deficit.

Okay I'll -- you brought up Medicare because.

Don't you think you should.

To use your question don't get don't -- thank you want to see if racing the age really got save money.

I think that those people are not going to evaporate from the face of the -- two years they're going to have medical needs.

And they don't have to be attended to -- and the early years intervention for it.

The less the cost will be in the better the quality of life.

I do think we should subjecting every federal dollar that is spent so the harshest scrutiny and I do think.

That this is the challenge and Medicare not Medicare the challenge is rising medical class health care costs in general.

And prescription drugs in the rest of that that drive those costs so that's what we have to -- which we did in the Affordable Care Act like that to receive.

Some reports from the institute of medicine about how we.

Reduce the cost of health care and Medicare.

Because -- were paying for quality not quantity of procedures but quality.

Performance.

And I think that there is money to be saved there.

And I don't think it has to come out of benefits for beneficiaries.

And I don't think you have to raise the age.

Gun control will be a big part of the president's agenda in the State of the Union Address Tuesday night.

But I want to ask you and about another part of the effort to stop these horrible.

Repeated acts of mass violence as part of your plan.

You call for more scientific research fund that connection between popular culture.

And violence.

We don't need another study respectfully.

I mean we know that these these video games where people.

Have -- had splattered -- movies these TV shows.

Why don't you go to your friends in Hollywood and challenge them shame them and say knock it off.

What I do you think whatever we do because when you talk about evidence based we have that fill out our proposal.

None -- -- we don't wanna just be anecdotally.

Writing bills -- -- have the evidence to say hello.

-- went right -- anyway but don't you credit what what -- want to have a lot of friends and Hollywood why don't you go to them and publicly say I challenge you to stop the video because.

I do think -- let's -- I I I didn't I understand what you're saying I'm a mother and a grandmother but they tell -- that they not Hollywood but the evidence says.

That in Japan for example they have the most violent games and the rest and the lowest.

Debt mortality from from guns.

What's I don't know what the explanation is -- that they might have good gun laws but -- I I think that you took one piece of that we're talking about.

But we're talking about -- Stop -- no further sales of assault weapons what's that what is the justification for assault weapon.

No further sales of those no further sales of the increase capacity thirty rounds in the -- we're talking about background checks.

Which is very popular even among gun owners and hunters.

A week week of now the First Amendment we stand with that and say that people have a right to have a gun to protect themselves.

In their homes and their jobs wherever and that day.

And their workplace and that they for recreation for hunting in the rest until we're not questioning their.

Then I could do that question is this is that I think a lot of people -- here it is liberals like Nancy Pelosi -- to go after.

Gun owners but they when it comes to mental health laws when it comes to their liberal friends and Hollywood they don't want to make them.

Antioch Clinton mental health plus I have to tell you and I was speaker we couldn't even get a hearing on this before that -- -- -- mental health parity act.

And then the Affordable Care Act we took that to the next step and then in another year -- obese.

Will have much many more services available.

Because of mental health parity we have certainly have to do more and I absolutely and applaud all of those who are saying we have to do more mental health.

But I think we have to do it.

I think we have to do it all and that's why we said in and we included in there we have to take a look.

At what these games are -- I don't I don't think we should do anything anecdotally we have a saying here the plural of anecdote is not data.

And and and so we want to know what is the evidence what will really make a difference here and I think we have to be comprehensive.

Finally President Obama predicted this week that you will once again be speaker his words pretty certain.

What do you think of the chances.

Of you regaining the majority in the house and you once again being speaker Pelosi after the 2014 mid terms.

Well -- hasn't -- but -- that's nice city said that but the fact is what is important that the Democrats take.

Regain the majority in the house.

That plane down and we have a lot of work to do we want to pass comprehensive immigration reform.

We want to pass -- that our kids safe and pass some.

At an initiative that relate to.

Gun violence prevention.

We want to create jobs and have initiatives where job growth with jobs.

We want to make our country.

More democratic in terms of how elections are conducted reducing the role of money increasing.

The level of civility that some of the so that -- women -- young people participate it's about confidence confidence in our democracy confidence and I children's safety confidence in our economy confidence its sister who we are as a people affiliate plenty to do beach before then.

That this.

But the president said with a complimentary.

But it's as far as I'm concerned it's just about the issues and the issues -- -- shared by democratic majority in my view.

And that's what I'm hoping that we -- -- in 2014.

But -- say that -- like we have a lot of work to do hopefully in the bipartisan.

-- between now and then and I think.

That in the issues that I named we could get bipartisan.

Collaboration.

Congress on policy.

Thank you lovely to see it always a pleasure to talk with my punishment and can.

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