CNBC "The Kudlow Report" - Transcript

Interview

CNBC "The Kudlow Report" - Transcript

MR. LEISMAN: Representative Maxine Waters is a Democrat from California. Representative Gresham Barrett, a Republican from South Carolina. Both are members of the Financial Services Committee.

Maxine, is this a defeat for the president in that he did not get a single Republican vote given that he tried so hard?

REP. WATERS: Oh, absolutely not. I think that this showed that the president was true to his word. He reached out to Republicans. He talked about getting support on the opposite side of the aisle. He talked about bipartisanism all throughout the campaign. He reached out to Republicans, they rejected him. And it's so unfortunate because when he campaigned, he talked about getting rid of the pure politics, coming together and working together for Americans. And I was so surprised that the Republicans, having had him come over, they all said they liked him, that he made a great presentation, and then to turn their backs.

MS. FRANCIS: Well, it doesn't mean they like the bill.

MR. LEISMAN: Gresham Barrett, how do you face the good people -- well, first of all, I don't have to read my notes to know that you voted against the bill because al Republicans voted against the bill. And I'm pretty good at simple math like that. How do you face the people of South Carolina and say you voted against a bill to help the American economy, that the U.S. president said was so --

MS. FRANCIS: Oh, Steve, come on!

MR. LEISMAN: -- let me let Gresham Barrett answer the question, Melissa -- and that was seen as so necessary --

MS. FRANCIS: By who?

MR. LEISMAN: -- and despite the call of a popular president?

REP. BARRETT: Well, you know, listen, don't take my word for it, take CBO's word. CBO said that only half of these monies would be spent within the first two years. When you look at the actual projects that are actually infrastructure projects and the president talked about being shovel-ready -- I'm thinking about roads and sewer and water -- 3 to 4 percent of this bill is that.

But I guess the biggest thing that raised the red flag with me when it came to CBO, they talked about the amount of monies that were going to existing programs, government programs, creating government jobs. And these organizations would not be able to track these monies, to be accountable. And that's what we're talking about. We're talking about $819 billion not being accountable to the American taxpayer.

MS. FRANCIS: Well, that's part of it. But I want to ask Representative Waters, you know, of this money, education is getting 66 billion (dollars) which is great but I'm not sure that's stimulative. Less than 5 percent is going for roads and bridges. My question is, how is this stimulative?

REP. WATERS: It really is stimulative. As a matter of fact, there are many construction projects.

MS. FRANCIS: But less than 5 percent of the money is going for that. It seems like it should have been a bigger percent.

REP. WATERS: Just one moment. You're not counting it correctly. For example, I have an amendment that passed today that would provide job training for broadband. We have all of these communities in the rural areas, in the outer areas that don't have broadband. Do you know how that's going to stimulate businesses?

MS. FRANCIS: And how quickly could that get up and running do you think?

REP. WATERS: Oh, very quickly. As a matter of fact, because the telecommunications companies will be able to do the job training, they can put people on the street doing fiber optics and doing all of this work within six months. This is very, very, very, very job creative and very productive.

MR. SHACTMAN: Well, there's a situation, Congressman Gresham, that politically a lot of the, quote-unquote, "non-stimulus spending" that you don't like is going to go through anyway. You just don't have the votes, and President Obama has that political capital and, like the former president, is going to spend it. But if you could try to get some tweaks here, whether it's in the Senate or the conference committee version, what are you going to push for to make changes that you can realistically get in here?

REP. BARRETT: Yeah, it's more tax structure type of things. We had a -- for example, there was one provision in the bill that was taken out. It was $200 million to re-sod the National Mall. That's more money in and of itself that's going to that one project than was going to small businesses. So I think if we're talking about a true stimulus package and we're thinking long term here, short term and long term, we've got to have more tax stimulus. You know, let's make the Bush tax cuts permanent. Let's make sure that --

MR. LEISMAN: All right. Let's pick that up. Congressman Waters --

REP. WATERS: No. As a matter of fact --

MR. LEISMAN: Hold it. All we're asking for here, Congressman Waters, a simple bit of compromise right here. Take out the 200 million (dollars) for the Mall, put it for small businesses. Will you agree right now, Congressman Waters, that we'll be on our way to passage.

REP. WATERS: The president more than compromised. He took out the 200 million (dollars), and it wasn't just for sod. That structure is sinking into the ground, and it needs to be repaired. That was job-creating right there, but he took it out. And he also took out the family planning money and Medicaid. He went more than half way and tried to meet --

MR. LEISMAN: Well, Congressman Barrett, is that true? Are you complaining about something that the -- hold on -- are you complaining about something the president has already compromised on?

REP. BARRETT: No, no. I said the 200 million (dollars) had been taken out.

MR. LEISMAN: So it's gone.

REP. WATERS: It's gone.

REP. BARRETT: That's correct. But let's talk about this.

MR. LEISMAN: But hang on because Brian asked you about something you want out and where you'd be willing to compromise. So let's talk about the bill as it exists now and how we can work towards passage altogether, ladies and gentlemen.

MR. SHACTMAN: Well, they can pass it without Congressman Barrett, so it's good to find out what you can do to make the compromises necessary. I mean, there's a lot of debate here at CNBC, and there's no doubt that some of the spending is just spending that doesn't directly stimulate job growth. But you need to come to us and say, you know what, this is what needs to get in there, whether it's the AMT, whether it's extending the tax cut for new home buyers. I mean, we need some specifics here.

REP. BARRETT: Well, and I think that's a perfectly good example. Let's put some more tax stimulus in there for small businesses. If you want to talk about the $7,500 credit for home buyers, I think that's another good place. Let's talk about lowering the two tax brackets for the lower stratus, the individual tax payer. Things like that that will stimulate this economy, not through the government sector, guys, but through the private sector.

MR. LEISMAN: Okay, I don't want to talk to either of you guys anymore. I want the both of you to talk to each other. (Laughter.) We would very much like Maxine Waters and Gresham Barrett, get together, come back for a bill with the American people we can pass that will stimulate the economy. I am very, very thankful for both of your times.

REP. WATERS: I am going to follow the example of my president who outreached to the Republicans. We're saying to them, come on, work with us.

MR. LEISMAN: Congresswoman, thank you very much. Congressman Barrett, thank you very much.

(Cross talk.) (Laughter.)

Go talk! Go talk! Come together!

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