American Morning
Wasserman Schultz: Obama was 'brutally honest' with the American people
Washington (CNN) - The U.S. House of Representatives is scheduled to vote Thursday on about $40 billion in budget cuts for fiscal year 2011. Then within 24 hours, the package must pass the Senate and be signed by President Obama.
At the same time, President Barack Obama unveiled his long-awaited deficit reduction plan Wednesday, calling for a mix of spending reductions and tax hikes that the White House claims would cut federal deficits by $4 trillion over the next 12 years without gutting popular programs such as Medicare and Medicaid.
On American Morning this morning, Future DNC chair Rep. Debbie Wasserman Schultz talked to Kiran Chetry about the criticism the President has received for his plan.
Hoyer, Cantor, Sessions outline hopes for Obama's debt-cutting plan
(CNN) - President Barack Obama enters politically tricky territory Wednesday when he outlines his plan for reducing long-term deficits and the national debt amid a climate of tense budget negotiations. Obama's speech at George Washington University will follow White House talks in the morning with congressional leaders who are staking out positions on upcoming issues, including approval of last week's budget deal for the rest of the current fiscal year, increasing the federal debt ceiling and crafting a budget for fiscal year 2012.
Ahead of today's speech, lawmakers from both sides weigh in on American Morning. Kiran Chetry and Christine Romans talk to Democratic Minority Whip Rep. Steny Hoyer, Republican House Majority Leader Eric Cantor and Alabama Republican Sen. Jeff Sessions, a ranking member of the Senate Budget Committee.
Watch all of the interviews below:
Rep. Cantor: President put forth ideas 'Republicans can work with him on'
"So tonight, I am proposing that starting this year, we freeze annual domestic spending for the next five years. This would reduce the deficit by more than $400 billion over the next decade, and will bring discretionary spending to the lowest share of our economy since Dwight Eisenhower was president."
-President Barack Obama, State of the Union Address, January 25, 2011
President Obama proposed a five year spending freeze on domestic spending in his State of the Union speech last night. It represents nearly a half trillion deficit reduction which the president admitted will be "painful" but many Republicans are saying the reform is too little too late. Representative Paul Ryan, delivering the GOP response to the State of the Union, said that the "president and the Democratic leadership have shown, by their actions, that they believe government needs to increase its size and its reach, its price tag and its power." But with the situation growing more dire, the parties will be expected to figure out a solution.
Representative Eric Cantor, R, Virgina, is the majority leader of the Republicans in the House and tells T.J. Holmes that he thinks he and the president have similar goals, "I think that like the president, I'm a results-driven kind of guy. I want to see something done" and that debt reduction may not be the only thing they agree on.
Rep. Van Hollen: 'We have to act now' for fiscal stability
"We will move forward together, or not at all -– for the challenges we face are bigger than party, and bigger than politics.
At stake right now is not who wins the next election -– after all, we just had an election. At stake is whether new jobs and industries take root in this country, or somewhere else. It’s whether the hard work and industry of our people is rewarded. It’s whether we sustain the leadership that has made America not just a place on a map, but the light to the world."
-President Barack Obama, State of the Union Address, January 25, 2011
President Barack Obama's message last night was simple, "We need to win the future." Delivering his State of the Union address, President Obama challenged the country to encourage innovation, refocus on education, rebuild infrastructure and reduce the amount of national debt. Focusing on the debt the president proposed to "freeze annual domestic spending for the next five years" to "reduce the deficit by more that $400 billion over the next decade."
The promises will mean a busy year in for Representative Chris Van Hollen who is the top Democrat on the House Budget Committee and will have to work with Republicans to reduce our debt. Van Hollen tells American Morning's Kiran Chetry, "coming together doesn't mean we agree on everything. But it does mean that we all have to give a little as we try and tackle these common challenges.
Will Washington ever tackle the deficit problem?
President Obama's deficit commission released a final report Wednesday that recommends sharp cuts in military spending, a higher retirement age and reforms that could cost the average taxpayer an extra $1,700 a year. The panel's 18 members – 12 of them sitting lawmakers – are scheduled to vote on the report Friday.
Though many agree that the deficit is too high, why is it so hard to get everyone on the same page about fixing the problem?
Michael Crowley, TIME Magazine's deputy Washington bureau chief, joins American Morning's John Roberts to talk about why it's so hard to come to an agreement on a debt plan.
Pay off $88,000 debt in three years? One couple did it.
Meet the Carrolls. Three years ago, they had a whopping $88,000 in debt.
Today, they're debt free.
CNN's Christine Romans talks to the Carrolls to find out how they were able to escape from this mountain of debt, and how you can, too.
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