'This Week' Transcript: WH Sr Adviser Valerie Jarrett

And yes for small businesses, this will give many individuals an opportunity to finally be able to afford health care. There are so many good benefits. If we start cherry picking apart all of the bad things and then exploit some of the anger and frustration out there, then we'll continue to have another six months of conversation to put out all of the lies and all of the rumors.

TAPPER: Let's dig a little deeper into what George said because it's not a completely insane point. George's point is that part of this health care bill -- you like that I said it's not completely --

(CROSSTALK)

TAPPER: It's better than not completely insane. It's an astute point. If you look at Washington politics, these tough decisions often do get kicked down the road until they are kicked away completely. If you look at the Medicare doc fix, how much doctors are supposed to be reimbursed. That was done as cost saving and then they keep undoing it.

And the question is if these Medicare cuts to Medicare advantage, and if these taxes, on these high so-called Cadillac tax, if these will actually be enacted or not. And Paul and Donna, do you think that will actually happen?

KRUGMAN: The actual history, most Medicare cost-saving measures have in fact gone through as planned. So if people cherry pick a few that have not and say, oh, you can't actually do anything. But the history is in fact that most of them have in fact been implemented and not reversed.

So the history is actually on our side here. And look, the fact is that these things, like the Cadillac tax, they are going to be coming up at a time when we'll be very much in. Now we need to get the budget under control mode. The fact of the matter is, the timing is such that just about the time that we're saying, OK, we ran up big debts to deal with the great recession, now we have to do something to get the fiscal balance under control. That's exactly when the Cadillac tax is going to come along and people are going to say, oh, we're not go to do that, then they'll be forced to come up with something else.

So I actually think this is all going to happen. I think it's -- if anything, there are going to be more cost-saving measures down the road because look, we are -- we do know that by 2018, 2020, fiscal issues are going to be at the forefront. So I don't think this is at all implausible. The logic of the situation says that the petty politics is actually going to be pushed into the background.

TAPPER: George and Peggy, let me ask you a question. One of your fellow pundits, David Frum was summarily dismissed from his position at the American Enterprise Institute. Why he was, we're not going to get into, but it occurred after he wrote a column that I want to ask you about. He said that the passage of this bill was actually a waterloo for Republicans. He wrote, "No illusions please. This bill will not be repealed even if Republicans score a 1994 style landslide in November. How many votes could we muster to reopen this donut hole and charge seniors more for prescription drugs? How many votes to re-allow insurers to rescind policies when they discover a pre-existing condition? How many votes to banish 25 year olds from their parents insurance coverage? We followed the most radical voices in the party and the movement and they lad us to abject and irreversible defeat."

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