McCain, Obama Advisers See Balanced Budget

Obama Backer Robert Rubin And McCain Advisor Carly Fiorina Say Sound Fiscal Policy Could Help Erase Massive Federal Deficit

(CBS)  Former treasury secretary Robert Rubin, who is advising Barack Obama, and former Hewlett-Packard head Carly Fiorina, who is advising John McCain, said on Face The Nation Sunday that a balanced budget is foreseeable despite a federal deficit that has ballooned to more than $400 billion.

"We could have had surpluses during this decade," said Rubin. "We started the decade with surpluses and we had good federal revenues. But instead, because of the fiscal policies put in place, we had deficits through all this period.

"What Senator Obama has said is that he is committed to restoring sound, long-term fiscal conditions," Rubin continued. "I think that's essential if we're going to have a good and strong economy. He said he'll pay for everything he's going to do with respect to Social Security and Medicare.”

Rubin said "we could absolutely get back" to a balanced budget.

Fiorina said McCain would balance the budget by 2013 by growing the economy and getting government spending under control.

"John McCain has never asked for an earmark," Fiorina said. "He has promised he would veto every bill [that has them]. Barack Obama has voted for bills that are laden with pork, whether it's the 2005 Bush-Cheney energy bill, the 2008 agricultural subsidy bill. Both of those John McCain voted against because they were laden with pork. Both of those Barack Obama voted for."

[According to Craig Holman of government watchdog group Public Citizen, who is quoted in this USA Today article, McCain "delivered" on a $14.3 million earmark for SunCor Development in 2003.]

Asked about McCain's comment that "there is nothing that's off the table" when asked about an increase in payroll taxes last week, Fiorina said the Arizona senator does not support raising payroll taxes despite the comment.

"John McCain has been very explicit in saying he does not support an increase in payroll taxes, particularly because they impact small businesses and sole proprietorships more greatly than any other part of our economy," she said. "His record is very clear on that, and he has a number of economists who support his assertion, that we can solve the Social Security and Medicare crisis - but particularly Social Security - without raising payroll taxes."

Both Rubin and Fiorina, top economic advisors to their respective candidates, said economic conditions could deteriorate further.

"I think that the current difficulties, the current duress, I think the most likely scenario with respect to all of that is that it will likely to continue for quite some period of time, could get a little bit worse," Rubin said. "There's always some chance that matters could get better more rapidly, but I think that's very low probability. And there's some chance (and hopefully it's a low probability) that things could get considerably worse."

"I certainly agree with him that the situation could get worse," said Fiorina. "And there are a couple of things that will make it worse. One is to raise taxes, which is what Senator Obama proposes to do. Another is to massively increase government spending, which is what Senator Obama would propose to do, over $1.5 trillion in increased government spending. And the third is to become isolationist and protectionist, which Senator Obama would also propose to do."

Rubin denied that Obama intended to raise taxes.

"What Senator Obama said is that he'll have a middle-class tax cut, and that tax cut will go to roughly 95 percent of all the people whose incomes are under $250,000," he said. "For people whose incomes are in excess of $250,000, their income tax rates will go back to the rates we had under President Clinton. Their capital gains rate will go up to some rate less than the rate we had during most of the time President Clinton was in office. Taxes on dividends will go up to the rate that will apply to capital gains, and that will be substantially below the rate that was in place when President Clinton was elected."

He also said Obama has not changed his mind on expanding offshore drilling, which Obama now says he would consider under very controlled circumstances despite opposing it in the past.

"What he said with respect to offshore drilling is it's going to have no effect in the short term, zero; that it's going to take years for this to come on board," said Rubin. "On the other hand, you're referring to the proposal that came up Friday, in which offshore drilling was a piece of a much larger piece of legislation.

"What he basically said, as I understand it - and I think this is right - is that there's a lot in there that he thinks could be constructive," he added. "And if it means doing something that he has a lot of reservations about in order to accomplish something much larger that's constructive, then that's the way a legislative process should work, in a democracy."

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Read the full "Face the Nation" transcript here.

[meek33]

I really hope the McCain camp cleans up there act. This week has made me want to stay home in november.Has any one seen this video of McCain cussing. Wow what a potty mouth. http://www.mccanes.com

[meek33]

I read an article that said obama was thinking about embracing the boone pickens plan. I think it was at http://www.tboonpickens.com

[pvperson]

Carly Fiorina says that continuing the war and tax cuts for the rich will balance the budget. Aren''t those the two main reasons we got here in the first place?

[omega39-2009]

Barack Obama has voted for bills that are laden with pork, whether it''s the 2005 Bush-Cheney energy bill, the 2008 agricultural subsidy bill. Both of those John McCain voted against because they were laden with pork. Both of those Barack Obama voted for."

Actually Phil (let them eat cake ) Gramm pushed McCain to vote against the farm bill because it had a provision that killed the Enron loophole that Phil (let them eat cake) Gramm personally pushed through during his days as a Senator.

[omega39-2009]

Carly Fiorina says that continuing the war and tax cuts for the rich will balance the budget. Aren''''t those the two main reasons we got here in the first place?

Posted by PVperson

Carly Fiorona was fired from HP, but not before she knitted herself a 57 million dollar golden parachute.

[ramos937]

Former treasury secretary Robert Rubin, who is advising Barack Obama, and former Hewlett-Packard head Carly Fiorina, who is advising John McCain, said on Face The Nation Sunday that a balanced budget is foreseeable despite a federal deficit that has ballooned to more than $400 billion.
-----------------------------------

For such smart people both Rubin and Florina are ignoring the most basic fact in this economic mess.
No one in or out of the federal government knows the true actual size of the national debt or the true actual size of the annual deficits. At best, they can only guess. Until we finally determine the true amounts, we cannot balance the budget.

[ljbhudson]

War: You can''t win a war if you don''t know who the enemy is. Econimic: You the money that but gave in tax refunds to convert automobile from gas to natural gas. Texas give $3000.00 smog control us it to convert the car you have now, not buy a newer one.

[wdrussell1]

McCain believes in magic.
More money for more wars, more tax cuts for the rich, more handouts to corporate America.
Even those three witches from that TV show didn''t have that much magic. It wasn''t worth looking up the name of the show.

Remember 8 trillion of our 11 trillion national debt came from the last three republican presidents.
Don''t be a four time loser.

[likeitis5050]

I really hope the McCain camp cleans up there act. This week has made me want to stay home in november.Has any one seen this video of McCain cussing. Wow what a potty mouth. http://www.mccanes.com


--------------------------------------------------------------------------------

Posted by meek33

They all cuss.

[liberty_1776]

Neither candidate will decrease federal spending, but Obama would increase spending far more than McCain. Obama is a Utopian socialist. He believes the government can tax and legislate the USA into a socialist Utopia, where everyone has "free" health care, the big bad oil companies are defeated and vanquished, and Mommy-Daddy government tells us all how to live our lives the "right" way. Obama''s way is definitely NOT the American way.

[sparks224]

liberty_1776,
People like you said the same thing about FDR.

[liberty_1776]

sparks224,

I don''t like FDR either. We definitely don''t need another FDR in 2008. If you are as socialist living in the US, you should move to a socialist country. The USA is not your home.

[liberty_1776]

FDR created the Ponzi scheme we now know as Social Security.

[liberty_1776]

"PONZI SCHEME" - Look it up, buddy.

[mcvet-1]

FDR created the Ponzi scheme we now know as Social Security.

Posted by liberty_1776 at 04:01 PM : Aug 03, 2008

I wonder how many MILLION American''s would NOT agree with you on that? Sieg Heil Bush

[mcvet-1]

Neither candidate will decrease federal spending, but Obama would increase spending far more than McCain. Obama is a Utopian socialist. He believes the government can tax and legislate the USA into a socialist Utopia, where everyone has "free" health care, the big bad oil companies are defeated and vanquished, and Mommy-Daddy government tells us all how to live our lives the "right" way. Obama''''s way is definitely NOT the American way.

Posted by liberty_1776 at 03:27 PM : Aug 03, 2008

What grade did you complete in school? I have to say it can''t be much better than 6th tops. When the Republican''s, McCain and Bush, took office they were handed a BALANCED BUDGET and a SURPLUS! After 6 years of Bush/McCain look were we are AND McCain wants to borrow EVEN more so he can again try the FAILED Trickle Down. Do you know how many times ANY Republican President has presented Congress a Balanced Budget under that failed Policy?? NONE! NOT ONCE!! NEVER!! Now how many times has a DEMOCRAT presented CONGRESS a Balanced Budget?? If you need help with that one, contact a 6th grader!! Good Grief!!

[mcvet-1]

I don''''t like FDR either. We definitely don''''t need another FDR in 2008. If you are as socialist living in the US, you should move to a socialist country. The USA is not your home.

Posted by liberty_1776 at 03:59 PM : Aug 03, 2008

Hummm Doesn''t like someone who was elected by the American People 4 times... someone who fought the Conservatives like a mad man to help England against Hitler. Someone who put in place things like Unemployment Insurance and so many others... but here''s one for you folks to tell you exactly why you should not listen to this Uneducated loser. FDR was responsible for the FDIC!! Now I wonder what would have happened to those good folks who had their lifetime savings in that failed Bank if they listen to the uneducated like this loser. Yeah we all should hate the Great FDR... well all of us who are INSANE anyway!!

[heartlight3]

Social Security would have worked fine if they hadn''t taken the money paid in to use for other things. I wonder why no one ever talks about that?

[mcvet-1]

So who do we agree with here? The great Rubin or the LOSER Dr. Phil?? ROFLMAO Sieg Heil McBush!!

[mcvet-1]

Social Security would have worked fine if they hadn''''t taken the money paid in to use for other things. I wonder why no one ever talks about that?

Posted by heartlight3 at 04:16 PM : Aug 03, 2008

Simple! Because that debt was going to be paid off in FIVE years when The Republican''s took over in 2000. The Debt had been so large that the interest was taking all the funds that should have gone into Social Security.

[liberty_1776]

MCVet-1:

"I wonder how many MILLION American''''s would NOT agree with you on that?"

Answer: About 75 million Baby Boomers (Americans born between 1946 and 1964) when they retire with no Social Security benefits.

Also, FDR was a typical Anti-American socialist:

"In the 1930s, the Supreme Court struck down many pieces of Roosevelt''s New Deal legislation, including the Railroad Retirement Act. In May, the Court threw out a centerpiece of the New Deal, the National Industrial Recovery Act, the Agricultural Adjustment Act, and New York State''s minimum-wage law. President Roosevelt responded with an attempt to pack the court via the Judiciary Reorganization Bill of 1937. On 5 February 1937, he sent a special message to Congress proposing legislation granting the President new powers to add additional judges to all federal courts whenever there were sitting judges age 70 or older who refused to retire.[27] The practical effect of this proposal was that the President would get to appoint six new Justices to the Supreme Court (and 44 judges to lower federal courts), thus instantly tipping the political balance on the Court dramatically in his favor. The debate on this proposal was heated and widespread, and lasted over six months. Beginning with a set of decisions in March, April, and May, 1937 (including the Social Security Act cases), the Court would sustain a series of New Deal legislation."

http://en.wikipedia.org/wiki/Social_Security_(United_States)

[liberty_1776]

When those 75 million people retire and get nothing, they can address their hate mail to Franklin D. Roosevelt - a lot of good it will do them!

[marshall_nee]

So who do we agree with here? The great Rubin or the LOSER Dr. Phil?? ROFLMAO Sieg Heil McBush!!

Posted by MCVet-1 at 04:16 PM : Aug 03, 2008

Rubin gave us Subprime just as much as Gramm did, then after he went to Citi, to ***** them up too.

[allurfears]

Cindy McCain could help. That $75,000 a month Cindy spends on credit cards could go to something useful like the national debt that McBush has raised to $10 TRILLION dollars.

[zerato-2009]

According to Craig Holman of government watchdog group Public Citizen, who is quoted in this USA Today article, McCain "delivered" on a $14.3 million earmark for SunCor Development in 2003. Mccain has said he has never used an earmark. I guess he lied

Mccain said "This is a election on who you can trust." Mccain a repub you can''t trust

[mart7lin]

On Face the Nation Today, Carly Fiorni did not answer ANY question he asked. All she talked about was John McCain. I just kept waiting for him to redirect her to the question at hand. On the other hand, Mr. Rubin answered the questions in detail. The McCain camp is in over their heads and the pundits, like Mr. Schieffer, are giving them a pass.

[mart7lin]

Correction: All Carly Fiorini talked abocut was Obama...did answer question about what McCain would do on the issues.

[pattysnow]

John McCain is in serious need of a new surrogate. Carly Fiorina doesn''t know how to answer simple questions and wasted her interview on Obama attacks. Her sarcastic tone didn''t help either. Meanwhile Rubin managed to be quite informative without a mere mention of McCain. Maybe being ousted from HP left Ms. Fiorina''s edges a wee bit sharp...

[mcvet-1]

So who do we agree with here? The great Rubin or the LOSER Dr. Phil?? ROFLMAO Sieg Heil McBush!!

Posted by MCVet-1 at 04:16 PM : Aug 03, 2008

Rubin gave us Subprime just as much as Gramm did, then after he went to Citi, to ***** them up too.

Posted by Marshall_Nee at 04:40 PM : Aug 03, 2008

You didn''t answer the question! I''ve often wondered how people have fallen for this stuff for so long! It play''s to the UNEDUCATED and the simple minded. The Question was who do we trust more on the Economy, Rubin, who presented Congress the LAST Balanced Budget we had and handed the Republican''s a Balanced Budget and Surplus in 2000 or A man who thinks the entire economic mess is in your mind! THAT was the question!

[mcvet-1]

When those 75 million people retire and get nothing, they can address their hate mail to Franklin D. Roosevelt - a lot of good it will do them!

Posted by liberty_1776 at 04:34 PM : Aug 03, 2008

LOL Are you living in some sort of space warp? I do hate trying to talk with people who have nothing more than MAYBE a 6th grade education! THE point was a simple one and it was that MILLIONS of AMERICAN''S have benefited GREATLY from Social Security. This poor fool doesn''t address the reality that Social Security has prevented MILLIONS of AMERICAN''S from being a burden on their families and allowed them to grow old with some dignity. He instead try''s to imply that we are going to allow Boomers to go without benefits because of the mismanagement of the Bush Administration. The System is broken, Social Security is as needed today as it was in years gone by. What is broken is our Leaders who refuse to make the tough decisions necessary to make the programs commitments a reality! Now PLEASE go back to school and for goodness sake give up the love for Joe McCarthy...it''s old, it''s tired and it has NO relation to present day America. Sieg Heil Joe