Fox News
Expand
Browse All Video
Watch Live

You're watching...

New deficit plan from Simpson, Bowles

Details

  • Description

    Former debt commission co-chairs explain

  • Duration 4:53
  • Date

Clips

Also in this playlist...

Editor's Picks

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

Our nation's debt crisis growing by the day and lawmakers are once again locked in a bitter fight over how to solve the problem.

Well now -- new plan is on the table that would deal with our nation's debt and spending problems from a pair of -- names you probably know.

Their goal is to build on what congress and the president have generally agreed on so far and cut trillions more from the deficit over the next decade.

Just moments ago I spoke with the former co chairs of the president's debt president Obama's debt commission Alan Simpson.

Anders -- and ask them about this new plan.

It's called.

A plan for America and we hope it'll be adopted by people who chose him to be Americans instead of just Democrats or Republicans.

But it reduces.

Deficit over the next decade -- 2.4.

Trillion dollars that's enough to stabilize the debt had less than 70% of GDP and most importantly.

Keep it on a downward path as a percent of the economy.

A quarter of it comes from revenue quarter -- -- come from health care spending cuts and another half of it comes from cuts in.

Discretionary programs in the other mandatory programs.

And putting forward the change CP.

And also interest cuts so again we think this is enough to get the job done.

This is enough to put America's fiscal house in order and we think it's our generation's responsibility.

To fix this problem we -- the -- it messed it up Republicans and Democrats -- And let -- get very specific very soon couple three weeks would get very specific we use numbers nobody will escape where we're gonna what we're trying to do no -- Korean no mirrors most -- We have a few of those numbers we can put up on our screen right now you're looking at that cuts of about 600 million dollars from Medicare and Medicaid.

600 million dollars in new revenue over revenue from ending exemptions and tax breaks.

And you'd also like to -- one point two trillion.

In -- in discretionary spending first of all.

Do we have those numbers right and and one point two trillion in discretionary spending it mr.

-- -- -- Like a lot of money.

They have been the foresee that support you don't have right.

It's about a quarter from.

From revenue so you've got about that 600 -- about a quarter.

From health care cuts.

And it's about a quarter from both defense non defense and other mandatory spending and it is about a quarter.

From going to the change CP.

Interest -- guns and other government reform so.

Again the defense of non defense cuts or anything like.

600 billion be -- thing is if you actually slowed the rate of growth.

On the discretionary budget to the rate of growth it was in -- 1990s.

You could say -- just doing net about 300 billion dollars.

Senator Simpson has the president take a look at this plan has he endorsed it.

Well he he will be he will be doing a lot of things in the next few days in the next few weeks.

But as I've said before I'm sure that's when he ran for reelection he wanted to have a successful presidency.

If unless he does something to get in and get his hands dirty and get -- working with the congress Democrats -- Republicans.

To do something about the long term solvency of Social Security.

And do something about health care system which is on automatic pilot forget whether it's gonna show.

Now here's it saves money -- doesn't -- -- kicks -- there's no cost containment in that baby and tell 2014 and after that they'll never do it anyway.

So if he wants to leave -- alone and not deal with those two big -- forget the rest of stuff he'll have a failed presidency.

-- have the president hasn't endorsed his Republican leadership in the house and senate.

The -- a democratic leadership in the house and senate nobody.

Has endorsed -- what we're trying to do.

Is to push these guys out of -- comfort zone we're asking Republicans to do some revenues were asked -- The Democrats.

To do more in the area Health Care Reform and to make Social Security sustainably solvent.

That pushes them both better comfort zone but it -- enough.

To actually put our fiscal house in order and that's what we think is important.

Erskine Bowles who served as chief of staff to President Bill Clinton and senator Alan Simpson former Republican senator.

From Wyoming they stressed -- that they are trying to start at a place where congress and the president were pretty much in agreement.

Back at the end of last year so they hope that by putting forward this new plan now they can actually get some people in Washington's list.

Fingers crossed -- if they make sense yet and they're doing this out of the good of their hurt most like is they're not like you know elected officials anymore and they speak very bluntly about what's at stake if we don't get something done.

Hopefully at some advice is taken -- --

Load More