This Week Transcript: Peter Orszag and Eric Cantor

ORSZAG: Well, again, we don't have a legislative proposal at this point. We have a placeholder just in case something becomes necessary. We would work with the Congress to craft a response, should one become necessary, that would pass.

STEPHANOPOULOS: The -- you've seen some bipartisan criticism over the long-term impact of this budget, real concern over the long- term increase to the debt from both the Democratic chairman of the Senate Budget Committee and the Republican ranking member, Senator Gregg. Take a look. (BEGIN VIDEO CLIP)

SEN. KENT CONRAD, D-N.D.: I'm concerned about the long-term build-up of debt. I'm especially concerned about the second five years of this budget.

SEN. JUDD GREGG, R-N.H.: This budget doubles the debt of the federal government in 5 years, triples the debt of the federal government in 10 years.

(END VIDEO CLIP)

STEPHANOPOULOS: They want to solve the problem by creating a commission, similar to the base-closing commission, where Congress and the administration would come together, come up with a package of revenue increases, spending cuts, and then force an up-or-down vote in the Congress. The president told a group, according to the Wall Street Journal, of Blue Dog Democrats last month that he was for this proposal. Is he?

ORSZAG: Well, I think it's clear that we need some changes in the process, whether it's the one that Senators Conrad and Gregg have proposed or ones that are more focused on health care. And let's -- let's focus on that, because that is the key driver of those long-term deficits.

That's why we want to get reform done this year. We can make our health care system much more efficient, and that is the single most important thing we could do to get those long-term deficits under control.

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STEPHANOPOULOS: So -- so to be clear on that, are you then, I mean, looking for a -- some kind of a commission for health care?

ORSZAG: Well, there are different ideas that have been out there on health care. For example, Senator Baucus, the chairman of the Senate Finance Committee, has proposed a federal health board that would move a lot of the decision-making away from the Senate Finance Committee and the -- and the Congress in general towards a group of more politically insulated and technically skilled people.

STEPHANOPOULOS: So you're for that, but not for a broader budget commission right now?

ORSZAG: Well, I'm just saying, there are lots of ideas floating around out there. And, obviously, one of the things that came out of the fiscal responsibility summit that we had last week is a discussion about the best way of moving forward. We will be exploring all of these ideas with the Congress. And, clearly, I think some changes are necessary, whether it's the focus on health care or -- or our broader...

STEPHANOPOULOS: So open to it, but no final decision?

ORSZAG: Yes. STEPHANOPOULOS: Finally, this week the Senate is going to be debating an omnibus spending proposal that has several thousand earmarks. The president was very clear that he wanted earmark reform during the campaign, said he wanted to get back to 1994 levels. Congressman Cantor, who's coming up, says the president ought to veto this budget because there are so many earmarks in it, yet the Democratic leaders in the Senate are defending the proposal.

(BEGIN VIDEO CLIP)

SEN. HARRY REID, D-NEV., SENATE MAJORITY LEADER: Since we've been a country, we have had the obligation as a Congress to help direct spending. We cannot let spending be done by a bunch of nameless, faceless bureaucrats buried in this town someplace.

(END VIDEO CLIP)

STEPHANOPOULOS: I don't think he meant that personally to you, but there's a real showdown here between the president's priorities. There's a lot of spending in that bill, investments that he thinks are important. There are also several thousand earmarks. So does that mean he signs the bill or vetoes it?

ORSZAG: We want to -- this is last year's business. We want to just move on. Let's get this bill done, get it into law and move forward.

STEPHANOPOULOS: So he'll sign it?

ORSZAG: Yes.

STEPHANOPOULOS: And what kind of earmark reform will he call for?

ORSZAG: We're going to be working with the Congress. We want to make sure that earmarks are reduced and they're also transparent. We're going to work with the Congress on a set of reforms to achieve those...

(CROSSTALK)

STEPHANOPOULOS: But he signs this bill this year?

ORSZAG: This is -- this is last year's business. We just need to move on.

STEPHANOPOULOS: Peter Orszag, thanks very much.

ORSZAG: Thank you.

STEPHANOPOULOS: Now, for the Republican perspective, we go to Congressman Eric Cantor. He comes to us from Richmond, Virginia.

Let's start where I just ended with Mr. Orszag right there. You heard it. The president's not taking your advice on the omnibus spending bill.

CANTOR: Good morning, George. Listen, I mean, the president was elected by the people of this country to institute change in Washington and to finally demand a federal government that is accountable to the people. We have a -- almost a $500 billion omnibus bill that came out of the House that will be considered by the Senate.

You know, I think that we need to put our money where our mouth is and not just do as I say, not as I do. We have got to institute reform so that the public can regain their confidence. The fact that there are 9,000 earmarks in this bill and the fact that the vetting process just doesn't take place the way it should, we ought to stand up and draw the line right now and stop the waste.

I mean, George, we cannot continue to afford to throw trillions of dollars out a week on the backs of the people of this country.

STEPHANOPOULOS: So you oppose the president on the omnibus spending bill. Obviously, you opposed the president on the stimulus package. Your colleagues give you a lot of credit for executing the strategy whereby no Republicans in the House voted for the president's recovery package. Will any House Republicans vote for the president's budget?

CANTOR: Listen, George, this budget obviously has raised a lot of concerns and a lot of different areas. But let's remember what the priority should be right now. The priority should be focused on preserving and protecting creating new jobs.

I mean, I talk to small-business people in my district all the time. They're hurting right now. They're not even taking home a paycheck, and they're struggling to make the bills at the end of the month and to keep the lights on. That spells real danger for our economy.

So we need to focus our efforts to make sure that what we do in Washington does one thing and one thing first, and that is to focus on economic growth.

STEPHANOPOULOS: So the president...

CANTOR: And this budget -- this budget will have -- we will have to work on this budget a lot in order to get this spending plan into that type of focus.

STEPHANOPOULOS: So let me go back to the same question: Will any Republicans vote for this budget? CANTOR: Well, George, as you know, you know, this budget has to make its way through the House. And, again, we want to work with this president. We want people to regain their confidence in Washington. And what people are looking for is results.