This Week Transcript: Peter Orszag and Eric Cantor
OMB Director Peter Orszag and Republican Whip Rep. Eric Cantor, R-Va., on "This Week with George Stephanopoulos"
ORSZAG: Well, I think we have to be -- let's be fair about this. Either you're going to look at what -- what is collected through the tax code and what's returned through the tax code.
And on that basis, there's a tax cut for 95 percent of Americans, or you have to go all in. Let's also count the benefits that families get through Pell Grants, the benefits that they'll receive through constraining health care costs, the benefits that they get from weatherizing their homes, and so on. All in, this budget makes the vast majority of American families much better off.
STEPHANOPOULOS: So you're not -- you're not disputing that this package -- the cap-and-trade on its own will increase prices for -- for most Americans, but they're going to be getting other benefits in the budget?
ORSZAG: Absolutely.
STEPHANOPOULOS: And there is also -- the Republicans are also taking aim -- including our next guest, Eric Cantor -- at your proposal to shave deductions, the benefit of the deductions for Americans earning over $250,000 a year. Congressman Cantor says, "Is there any better time to have charities in full throttle than when you have tough economic times?" Your response? ORSZAG: There's been a lot of confusion about this, too. Let's be clear about several things. First, the best thing that could help charitable contributions is to get the economy back on its feet. That was the whole goal of the recovery act.
This proposal doesn't take effect until 2011. The revenue would be dedicated to health care reform, and that is the key to our fiscal future, so let's keep our eye on that.
Furthermore, the majority of contributions come from middle-class families. And you have to ask this fundamental question...
STEPHANOPOULOS: Who, you say, aren't going to be hit by this?
ORSZAG: Not only are not going to be hit by it, but let's ask a question of fairness. A middle-class family makes $1,000 contribution to a charity, they get $150 back on their taxes. Bill Gates makes that same contribution, $1,000 to the same charity, he gets $350 back on his taxes. All we're saying is the tax break for Bill Gates should be walked back a bit to $280.
STEPHANOPOULOS: But you know it's not just Republicans who have a problem with this proposal. Key Democrats, like the chairman of the Senate Budget Committee, Kent Conrad, I think Senator Baucus, as well, have said, wait a second, we're not sure we can go along with this. If the Senate and the House will not go along with this proposal to shave deductions, does that mean you'll scale back your health care promises?
ORSZAG: Well, we hope they will go along with it. And what we have said is...
STEPHANOPOULOS: I know, but that's not what I asked.
ORSZAG: But let's be clear about the health reform. Health care is the key to our fiscal future. We are going to make sure that it is not only self-financing over the next 5 to 10 years, which means if that revenue stream isn't available, something else will have to be.
And in addition, those reforms to health care, making the system more efficient, will help bend the curve over the long term and vastly improve our long-term fiscal future.
STEPHANOPOULOS: So that's an important point. Just to be clear, then, you're saying you will not increase the deficit more than we have right now in order to pay for that health care? If the revenues don't come in, then you will not go forward with the health care?
ORSZAG: We need some other proposal. No, no, that's -- we're going forward with health care. We're going to get health care reform done this year. I think this proposal will get enacted. But if it -- if it doesn't, then we're going to need to come up with some other offset.
STEPHANOPOULOS: Congress will have to fill the hole. But what if they don't? ORSZAG: Look, we want to get health care reform done this year, and we want to do it in a way that doesn't add to the deficit and that also helps bend the curve over the long term.
STEPHANOPOULOS: A lot of people I talked to on Capitol Hill say, you know, they look at the scope of this, and they worry that you're going to overload the circuits in the House and the Senate in Congress. Can you really go forward with the kind of health care proposal you're talking about here, a more than $600 billion reserve fund, and go forward with the energy proposals, more than $600 billion in revenue? Can you do both this year? And if you can't, which one takes priority?
ORSZAG: I think we can. We face big problems, and we've got to -- we've got to tackle them. Clearly, this budget is changing course. It's, like, you know -- and the GPS system is recalculating the route and people are getting used to that. But we -- we have these big problems, and we need to tackle them.
STEPHANOPOULOS: And in order to get it, though, you saw how difficult it was to actually spend money, give benefits with the stimulus package. You're scrapping for those three Republican votes. Some key Democrats on Capitol Hill are saying, if you want to do all of these big projects this year, you're going to have to follow what is called the reconciliation process, put health care, put energy inside the reconciliation process so that the effect of it is you only need 51 votes, not 60. Is that the administration's intention?
ORSZAG: I think it's premature to be figuring out the legislative strategy exactly right now.
STEPHANOPOULOS: But you're not ruling it out?
ORSZAG: It's not where we go first, but we have to keep everything on the table. We want to get these -- these important things done this year.
STEPHANOPOULOS: How about on the bank bailout? The president was pretty clear on Tuesday night that more funds might be needed for the banks.
(BEGIN VIDEO CLIP)
OBAMA: This plan will require significant resources from the federal government and, yes, probably more than we've already set aside. But while the cost of action will be great, I can assure you that the cost of inaction will be far greater.
(END VIDEO CLIP)
STEPHANOPOULOS: You've put a $750 billion placeholder in the budget for the banks. Is that what you're going to be requesting from the Congress?
ORSZAG: No, let's again be clear about this. The budget is intending to be responsible. We put a placeholder in there just as an insurance policy should additional financial stabilization efforts become...
STEPHANOPOULOS: But he was pretty clear you're going to need more money.
ORSZAG: It's not -- look, let's -- if additional efforts become necessary, we'll work with Congress on the scale and scope of them. We wanted to put a placeholder in just in case, because there's a lot of uncertainty, obviously, and, again, just to be responsible, we thought it was better to put a placeholder than -- than nothing.
STEPHANOPOULOS: But the odds are that you're going to need something. The president was clear on that. We've gotten nothing but bad news out of the banks over the last week. And it was also clear from the last time the TARP, the bank bailout, was voted on that this is going to be a very tough vote. And I'm -- I know from my own reporting that, if this were put to a vote today, you do not have the votes in the House or the Senate. What's going to have to change to get congressional support?
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