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President Obama today called for the rich to pay more and shared sacrifice by all and outlining his new economic plan.
Let's go over some of the major points with one of the president's top economic advisors Gene Sperling director of the National Economic Council thanks for being here thank you.
Want to get your first to react to represented Paul Ryan's reaction to the president's speech.
Percent of -- saying instead what we got today it was a speech that was excessively partisan and inaccurate.
Not leadership former president but the political broadside from the campaigner in chief.
Basically -- panned the speech saying he was inaccurate and didn't have details and well.
You know I'm sorry if chairman Ryan didn't like the speech but what we as a country should be focused on is the actual substance indeed -- of what the president.
Put -- today was a very serious comprehensive deficit reduction plan that would reduce the deficit by four trillion dollars over twelve years.
It calls for three dollars and spending cut for every dollar of revenue raised through bipartisan tax reform it puts in place a tough.
Trigger enforcement mechanism to make sure that no matter what happens with congress we see our debt.
Declining as a share of our economy and it put in further enforcement control long term health costs this is -- type of the serious plan.
Well you know there's lots of people.
On the Republican side and made very tough speeches to the president.
A -- speech about his vision.
But what we should be focusing on as a country.
It is not name calling or what the tone of a particular speech was but the chance that we have to come together have a serious bipartisan deficit reduction plan.
-- -- let's get into some of the weeds here you smash in the three to one ratio of us spending cuts to tax hikes.
That the president talked about what is the baseline there is -- the president's budget is the baseline.
It's very similar to the baseline that was used by the bipartisan.
And it really calls for an additional trillion dollars on discretionary spending over the twelve year period.
An additional trillion dollars in entitlements in mandatory programs including Medicare and Medicaid -- There's a trillion dollars of reduction in contrast cost.
And then there is an additional trillion dollars in the revenue that we hope it comes out of bipartisan.
Tax reform of which the idea is to reduce tax expenditures enough.
That you can both lower rates and still help lower the deficit now Republicans are saying if you use the CBO baseline.
It's more of the one to one ratio.
But that's just not the case that's just not the case all right let's talk about the projection -- twelve years instead of the normal ten.
Well you know over if you want to talk ten years it's a three trillion dollar deficit reduction plan over ten years.
But fortunately four trillion dollars have been -- target that have been set by the bipartisan fiscal commission there was part of what was then.
Chairman Ryan's proposal for what the president wanted to say is that.
We believe we can get there.
We think we need to get there are a little more carefully to make sure we don't undermined the strength this recovery.
That we make sure we can still in vast in the things we need to do to compete with China and our other competitors.
And that we need to make sure that as were reforming and strengthening Medicare Medicaid we do so in a way that's not.
Harshly or quickly shifting costs to those who are least able to afford them.
The president's plan calls -- two trillion spending cuts one trillion in higher tax revenue by eliminating deductions.
Total of three trillion in deficit reduction so I'm sorry and there -- a trillion dollars that you get.
From the -- less interest savings so that's -- get four trillion yet so there's three dollars in spending cuts if you include the interest savings.
For every dollar revenue that would come from bipartisan tax reform got you so are the borrowing costs 33%.
This is how the math works and all of end and end this is important about any plan we have rising contrast.
As part of our future forecast all of us whether here President Obama -- the house Republicans were all dealing with that and one of the important reasons.
That we need to put -- serious deficit reduction plans is to stop or at least.
Help control the spiraling cost of -- for pain on the debt the good news is is that when you put forward serious deficit reduction.
About whether it's on the spending side or revenue side that does also at the same time.
Bring down our projected cut -- -- cost which is you know a very unfortunate.
Recurrence of the very high debt and deficits that this president inherited now there were some tax -- And nations in -- deficit and debt commission.
Is the president ready to go that far you talk a little bit about tax reform.
But in the deficit commission's recommendations they have a one proposal for three brackets of income tax 122228%.
With few deductions and then corporate income tax to cap hit between 23 and 29%.
Closing loopholes is the president ready to go down that road.
So the president did not.
Try to pre judge how the bipartisan tax reform would come out.
He does not.
Asked that process.
To produce as much revenue savings as the bipartisan.
Find fiscal commission dead.
Buddy he did ask that it produced some so that we are contributing to the deficit.
As we're lowering rates and reforming our tax code but we know that this is something that will have to be done with Democrats.
And Republicans at the table.
And but we understand the -- I think many people share the same -- -- lower the degree of tax expenditures so that we can both lower rates.
So people have lower tax rates and the same time help lower our deficit our debt the contrasts that we're paying every year.
Okay -- thank you very much for the time really appreciate it thank you.
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