ICYMI: Whip McCarthy Discusses 'Fiscal Cliff' on CNN's 'The Situation Room with Wolf Blitzer'
Washington D.C. – House Majority Whip Kevin McCarthy (CA-22) appeared on CNN’s “The Situation Room” with Wolf Blitzer to discuss House Republicans’ plan for a balanced approach to avert the fiscal cliff.
“The President said he wants a balanced approach, but where are the spending cuts? We are sitting at the table.”
On Fixing The ‘Fiscal Cliff’ Through Spending Cuts & Revenue:
“The American people want to see the problem solved and what we have is we are spending $1 trillion more than we bring in every year so we need to solve that problem… What we need is overall tax reform. The President has said he wants a balanced approach - he wants revenues and spending cuts. The Speaker has been down to the White House, and has offered revenues, not by raising rates that will hurt the economy and small businesses, but by closing special interest loopholes, and having the President show us where his proposed cuts to government spending are to ensure this is a balanced approach.”
On Raising Tax Revenue Through Reform, Not Rate Increases:
“When you raise rates you harm the economy and the economy right now is weak.”
“Remember two years ago when Democrats controlled the White House, House of Representatives, and the Senate? The President said then you don’t raise taxes in a down economy.”
“There are currently a lot of people unemployed, underemployed, and graduating college having a hard time finding a job. We need a much stronger economy. Remember, we are at the lowest point of small business startups in 17 years and they are the greatest job creators in the economy.”
“What you really need to do is sit down and find a place where you can control government spending and raise more revenue. If you are able to raise more revenue by closing special loopholes and limiting them and keeping the tax rate down for better job growth, that makes sense.”
On The President’s Belief That Small Businesses Will Not Be Affected By Tax Increses:
“Most accountants will tell you small businesses run as an S-Corp. What you would do is raise the rate over 43% based upon the taxes in Obamacare. Small business creates more jobs than large corporations so if you look towards the future we are at a weaker position. We don’t want to harm more small businesses. So let’s sit at the table and find places where we can close special interest loopholes, get the President the revenue he wants and allow our economy the ability to grow.”
On The Need For The President To Lay Out Spending Cuts For ‘Balanced Approach’:
The one thing you have to remember is you cannot solve the problem by just by more revenue. We are going to have to control the spending by government. The President even admits you need 2.5 dollars of every spending cut to every dollar of revenue. The one thing you find is – we are talking a lot about revenue, and we should be spending the same amount of time talking about spending cuts. That will bring a compromise. At the end of the day, the American people want a solution, and Republicans want a deal.”