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Let's -- more on the administration perspective on the weighty issues on Capitol Hill now joining me live tonight from the briefing room is white house Press Secretary Jay -- Jay thanks for joining us Brett thanks for having me first let's talk about the budget -- looking at the budget and the reaction to it across Capitol Hill first of all a question.
Does the president believe that solvency.
Is an issue with social security and Medicare.
Absolutely the president's budget proposal is you know.
A continues the work of reducing our deficit in a balanced way but the president's priority number one priority is economic growth and job creation.
And securing the middle class and what his budget proposal does and proves Brett is that you can.
Continue to make key investments in the middle class.
In education in an innovation to grow the economy keeping creating jobs.
And reduce our deficit in a responsible balanced way.
He believes that that's the Smart thing to do because jobs and economic growth as we know from history is the best way to continue the project of reducing our deficit.
And making our country stronger for -- future.
On entitlements not much is being done on entitlements Social Security actuaries say this change CPI.
Change that you have been here will only push back the date on which benefits are cut.
But really 25% overnight.
By about two years so this does the president believe more needs to be done.
But there's no question Brett -- you know we will always continue to work to make those programs stronger.
But I it it's easy to dismiss some -- did the leaders of the Republican Party in negotiations with the president.
Clearly stated and publicly stated that as part of the deal that would be balanced and would include revenue they wanted three things.
Two of those these three things change CPI and means testing of Medicare.
Are in the budgets proposed the president's budget and we're in the proposal he made speaker Boehner.
By definition two out of three is coming more than halfway towards the Republicans.
And the president tonight in his meetings with Republican senators are his dinner with Republican senators is going to continue the conversation.
That he hopes will lead to -- some common ground on these issues with.
The other party.
So is it fair to -- that the president will only tackle entitlements.
In exchange for higher taxes.
The president believes that we can only -- approach our budget problems and our fiscal challenges in a balanced way.
What his budget proves -- as you can do that well without.
-- to rising Medicare which.
Would only shift costs as the house Republican budget would do shift costs to seniors thousands of dollars a year to seniors.
You can do without slashing investments in education and innovation infrastructure which are key to economic growth in the future.
You can do -- if you do it smartly and wisely in a combination of savings from spending cuts and entitlement reforms.
And from increased revenue through tax reform is you know.
Brett just at the end of last year speaker of the house Boehner said that he could achieve up to a trillion dollars in revenue.
By reforming our tax code and he claimed he could do that only from the wealthy and well well connected there were only asking in the desert and president but proposal.
To ask for 580 billion dollars there's not a 1000000000580.
Billion dollars that is balance.
And it's fair.
Let me I'll talk about revenue in in the second I'm just talking about entirely -- I -- you've got the Social Security.
A disability trust fund runs out of suspicion money according the actuaries in 2016 on the president's watch.
The Medicare hospital trust fund runs out of sufficient money in 20/20 four you have the Social Security which only can pay out what it takes in.
We'll have to impose this 25% overnight.
Cut in benefits in 2033.
And then if you have the -- CPI's 2035 I -- the question is does the president believe.
That have more has to be done.
The president believe that we will continue to work to strengthen the programs in ways that protect them and protect the guarantees for our seniors.
You know it what is interesting is that the alternative proposal that is out there that at least emerge from the house.
Would doubt -- Medicare as I said.
-- and did you know claims to balance the budget without providing.
Any specifics and the reason it does that is of course they don't want to get into the details of how you provided five trillion dollar tax cut mostly to the well off because the answer is.
You have to do that in a way that raises taxes on the middle class sure about a lot of birdies on both sides of the study this say if you take -- -- right now.
Or you take out a massive.
Painful cuts later.
No would be exactly precisely you need to continue to do this.
The much maligned in some quarters.
Affordable Care Act as you know according to CBO.
Reduces health care costs.
And extends the life of Medicare.
Ironically even though chairman Brian opposes that he includes it in his budget the savings from at the savings from Medicare.
Precisely for that reason he also includes in his budget.
The savings -- from the revenue -- in the fiscal cliff deal last year again something he claims he opposed but uses it for his budget purposes the president -- we got to do this in a balanced way that the American people say they want.
Yes and he's been saying that while the president has received some accolades on the right for.
The willingness to revisit.
This less generous formula for government measuring the increases.
In the cost of living this -- CPI there's also concern that because of how that would affect.
It would translated into an estimated 100 billion dollar -- middle class tax increase over a decade is that a fair concern.
Look the CP chase so called change CPI which for you know and non walk viewers is that re formulation of the waited.
Cost of living expenses are tied to inflation.
He's a technical adjustment that again was sought in a specific request by Republican leader is -- -- but I -- know I mean girl.
It is not preferred policy by this president it is a demonstration.
As include you know as part of his budget of his seriousness of purpose when it comes to trying to find common ground but if he gets what he wants in his budget.
It means a tax increase of roughly a hundred billion dollars for the middle class kids and -- it's it's an adjustment to the cost of living increase an adjustment of inflation how we measure inflation.
It's not a it's not a specific tax provision it's an adjustment and in our inflation and it's one that the Republican leadership asked for.
Which is not preferred policy but we believe in the spirit of finding common ground.
That it is an acceptable part of a broader package that would reduce our deficit and help grow our economy.
Last thing about growth compared to the CBO.
The budget here.
The growth is much more rapid if you look at the real GDP growth up on our chart.
From 2013 to 20/20 three.
But the interest rates.
Projection -- is is much lower in the interest payments on the debt 2013 is 12222.
And in 20/20 three it's 804 -- so the growth is more rapid but the interest rate projection is lower so.
Basically if interest rates go up because growth is higher.
That means we might have to pay more on the -- And that means those numbers could go higher in the out years.
Well I don't have the that the tables in front of me -- that that the budget projections made.
By our -- here are extremely.
Reasonable and conservative.
They have consistently again throughout the president's time in office and and and that's how they've approached.
The preparation of this budget this time I don't have a specific numbers that you referenced in front of me but I can tell you that.
The council economic advisors in the rest of the president's economic team have made very reasonable common sense projections going forward in the shaping of this budget.
Jazz always we appreciate -- coming -- Thanks for having me Brett.
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