Mar 1, 2013|
Bloomberg Businessweek Senior National Correspondent Josh Green on Simpson Bowles
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Josh green -- a national correspondent for business week and he joins us today on the financial exchange Josh good morning welcome back to the show. Josh let's talk if you don't mind about Simpson -- you kind of have done a revisiting. Of that -- -- Can you give us a a lesson if you will or reminder refresher course on sensible. Sure it's been -- was formerly noted the president deficit reduction commission was established now. By Obama to doubt that. In the idea basically was that it. The politics of reducing the deficit. Has become so impossible -- effect -- which -- do -- -- legislate it channels through congress. It is bipartisan commission was devised. To kind of go off and negotiate in secret come up with -- plants -- at immaculate conception. To create a big deficit reduction plan that both parties could agree to -- the grand bargain -- oddity here people talked about. That -- can -- about it and but it turned out it was picked up by congress President Obama didn't dorsett. But couldn't even get out of committee could get the fourteen votes that it needed to get. -- departed as part of that charter of the commission there was there was a rule but that it is fourteen could be eighteen members of the commission voted first recommendation. It would get past tracked through congress no benefits no filibusters. That it wound up getting bipartisan support but only eleven of the vote. And guys that had put eight guys and it put together voted against ranked ms. -- in years going back in time but. -- people like Paul Ryan who was on that and then he voted against. Right and -- -- -- house Republicans voted for you had a a couple of senators that matters in -- democratic senators. But. Basically nobody wanted to vote for the same reason that that we -- to a deal that Republican or decrease taxes. But Democrats don't wanna cut entitlement spending deeply principals within that but after after this plan essentially failed it would pan. It does it hit the road they've sort of -- glory. Grateful Dead style ever been trying to build a policy prescriptions we. Some success that looked like it looked like -- fiscal cliff might finally beat the mechanism. -- that would that would make this thing go into effect. Bold and that they'll certainly thought it. That have happened and now that the sequestered morrow would they be the last ditch chance or something like this to go through. I -- Simpson balls in today when I looked at it affected everybody in the and it pushed out the retirement aged eliminated the mortgage deduction or reduce the mortgage tax deduction -- -- it reduce it down to about 500000. I think yeah I picked up like as 500000. Yet. -- he would -- put forward work which Arctic do -- him extra it was meant to sort of ballots. -- paint Republicans would mean for Democrats. But ultimately produced before trillion dollars -- over the next decade it would not just reduce the debt but but with the debt to GDP ratio. On a downward trajectory. On it would gradually being bring the government's spending and revenue back into line. And it basically -- it seems like the biggest. Sin they created was going after entitlement programs that's that's what -- I don't. No well I I think it depends if we. We look at if you if you talked to two hardcore liberals I think it would agree with I think if you talk to hard core Republicans -- -- Republicans the -- it was a day. Proposed rate and tax -- not just tax rates -- close loopholes which would have the effective. Of the increase in an attack the government collects. And that's the same debate we're having right now today at the -- between. Democrats and President Obama who ought to. Raising taxes on millionaires and close tax loopholes. To replace the sequester in -- Republican -- it that would have to be a percent cut spending cuts. We're not gonna -- taxes at all. So let me ask you Josh how do you think this thing plays out over the next six months disease if this is really the only year. They you can get anything done next year and everybody's running for election again so if you don't leave it to things that I thought we would get as some kind of entitlement reform this year and then amnesty for illegals. In in 2013 I still think we're gonna get the amnesty. But I'm questioning was to -- gonna getting serious oh deficit reduction. What people know the answer that question the next victory weeks -- there are two more big. Budget showdown this to sequester tomorrow which kicks in tomorrow. People aren't really all that worried about because it is like equipped with a taxpayer but he acts this year we will take effect gradually. Out of the real deadline at least Washington ought to be march 27 which is what funding for the government run. And and that's not extended then you have the full blown government shut down like he did it 1995. To panicking now is that something. Is got to act I have to be negotiated. To avert that government shut. It's possible that it could be a grand bargain type -- did deal with. Entitlement reform that did you would closing tax loopholes he. This sort of political rationale. To do a deal like that still exists. The problem. If you look at congress' track record over this year's budget crises we already have the extent to be small not big ones and all the talk emanating. -- especially. Republicans -- that -- just won't entertain anymore tax credit given the form of loophole closing of the proposed in the past two out that I think is difficult to the economy entitlement reform happen because Democrats don't have. -- -- can be elected into the -- out right Republican demand that. No idea I don't see that happening either I get the one thing I'm looking forward Tuesday congress not getting paid in April. We'll see if that happens there's still some question as to legality. -- -- But. The only thing I -- constitutionality. Of that but that's the only good thing about it -- -- he tried every other try to the other that it of that -- knew that -- by the work so I would I would hope Barbara. Josh thank you heard -- for joining us. Josh green audience from. Business week. Talking to us about the the sequestration and sent some balls I remember reading this June and this would mean I mean everybody was ticked off about sensible and down but you don't sound like you're. No I loved it it was too because everybody's -- in Scotland the other -- -- Everybody he. Now and it is opening up and expanding. In Boston talk about that next interesting story about how they're owned by eBay will talk about.