CNN "American Morning" - Transcript

Interview

BREAK IN TRANSCRIPT

Earlier we spoke to Democratic Congressman Chris Van Hollen. We want to get a perspective now from the Republican side. And joining me is Republican Congressman Paul Ryan. He's the chairman of the House Budget Committee.

Congressman, you have been sort of an architect even before it was cool among the Tea Party movement to be talking about getting our financial house in order, you have been doing this for years. So the moment is here. The moment is definitely here, critical day at the White House to get this deal done. And this morning everyone wants to know is the White House going to be willing to push for some sort of changes to Medicare and Social Security? What would be palatable to you? What do they need to tell you to get Republicans on board for a deal?

REP. PAUL RYAN, (R) WISCONSIN: Well, I'm not going to be at that meeting. That is where our leaders go, number one. Number two, with all due respect, Christine, I don't think it's a good idea to negotiate through the media about we will or will not exceed or accept. The key is we get this debt and deficit under control. I mean that is the whole point here, right? I mean it's been 800 days starting tomorrow since the Senate even bothered to pass a budget. So Congress hasn't been budgeting at all. The only opportunity to get this under control is this debt limit negotiation.

I wouldn't put too much into just today's meeting. What I would describe what's happening today is we are not entering the mature phase of this. We are getting the leaders, the speaker, the president sitting down and talking about how to do these things.

And to your point, yes, our entitlement programs -- you mentioned Medicare, Social Security, Medicaid. These are the biggest drivers of our debt in the future. If you want to be honest about dealing with our debt long term and in the medium term, you have to deal with our entitlements. And spending is the root cause of our problem. So we're basically saying for every dollar of increase in debt limits let's cut more than a dollar of spending.

ROMANS: You know, I get you, you don't want to negotiate to the media. But I'm telling you Americans are maddened by the process. They are hearing all of this dire talk.

(CROSSTALK)

RYAN: So am I.

ROMANS: I know -- aren't we all? Hear all of this dire talk about what's going to happen if we don't raise the debt ceiling and they are saying, wait a minute, Congress already wrote these checks.

RYAN: Yes.

ROMANS: Congress already did all this spending and now you're saying we're not going to pay those bills. So that's something the people fundamentally get irritated with. And because all of this is -- look, $4 trillion, $2 trillion, $4 trillion over ten years, $6 trillion as you proposed over ten years.

This is going to be major changes to how Americans live their lives. So that's why people want to know what's going to be accepted for Social Security.

RYAN: Right.

ROMANS: What is Medicare is going to look like? What's -- what's the military are going to like? What are tax rates going to look like?

RYAN: Well, I can't answer the questions because I don't know the answer to the question.

ROMANS: Right.

RYAN: But I can tell you what we propose. My point is if you change policies now and get government to reorient its policy; you don't have to provide severe disruptions to people and their lives. Our Medicare proposal, it doesn't change Medicare benefits for anybody above the age of 55.

But the problem is if you -- if you keep kicking this can down the road, then you will end up cutting current seniors. So that's what we have been trying to avoid. Social Security, the same goes for that. I have yet to see a plan introduced in Congress that affects the benefits for current seniors. I don't know what's on the table at this meeting today.

ROMANS: Yes.

RYAN: But -- but -- but I got to tell you if you get ahead of this debt situation now we can do it on our own terms, we can keep the commitment to current seniors and change it for future younger people like ourselves so we have these programs when we retire. The sooner we deal with this thing the better off we are and the less severe disruptions that occur in people's current lives. And so that's the deal here.

And look, you're right, the reason we're at this point is because we hit our nation's credit limit.

ROMANS: Right.

RYAN: Because of past spending. We got to deal with future spending so it doesn't happen again and that's what we are trying to do.

ROMANS: Yes, you understand capital markets. I mean what -- what happens if Republicans are so emboldened by the power they apparently have and -- and the leverage they have in this situation that we don't resolve this debt ceiling thing right away? I mean could you see the future where we are paying more -- spending more money because we have defaulted on something?

RYAN: Because interest rates go up?

ROMANS: Yes.

RYAN: Look, default is not in our interest. Default is not our game plan. At the same time, if you simply raise the debt limit without showing any -- any discipline on spending, I would argue the credit markets will come at us that way as well.

I think the credit markets will get us if we default, I think the credit will get us if we don't cut spending.

ROMANS: Yes.

RYAN: So I think the obvious answer here is you know, get a good down payment on debt and deficits.

ROMANS: And there are some in the bond market who are saying the reason why the bond market hasn't gone crazy so far is because they know that there is this new serious era of fiscal discipline in Washington.

RYAN: Right. ROMANS: Just getting there again the politics of it.

(CROSSTALK)

RYAN: I'm just starting to hear some refreshing talk. I'm just starting to hear refreshing talk. Some of us have been in the wilderness here for a while and it's good to hear some actual realization about the dire fiscal problem we have today.

ROMANS: Well, let me ask you quickly about the "The Wall Street Journal" earlier this week, said that you know, maybe a loop -- we should cut loopholes but we should make a more simple corporate tax system. I mean is that a way to go? I mean, loopholes -- that is what we need to do?

RYAN: Absolutely. I agree with that. That's in our budget. We say let's get rid of all these loopholes and lower taxes for everybody. You've got companies like General Electric paying nothing and companies like UPS paying 34 percent.

ROMANS: Right.

RYAN: How fair is that? Let's get rid of the loopholes so we can lower the rates for everybody and grow the economy and create jobs. This is all about creating jobs and getting this debt under control.

ROMANS: Yes. Well, I'm telling you, there's a lot of politics involved too and as you know well, sometimes politics can get in the way of what -- what is necessarily the best economic interest but hopefully everyone has got -- everyone knows how serious -- inside that room today everyone knows how serious this whole situation in the short term and very long term.

Congressman Paul Ryan, thank you so much.

RYAN: Thank you Christine.

BREAK IN TRANSCIRPT

Source