are suggesting what the president has done based on the 2007 budget numbers is inflate the budget to a huge degree. you have the 40-cents on every dollar going to service the debt now, freezing it at a much higher level than it was three years ago and that amounts to essentially a drop in the bucket, your response? >> reporter: it's not enough. discretionardiscretionthe bigge. the healthcare expense not just for the federal government with medicaid and medicare, that's a real add on to the deficit, and frankly the biggest challenge that we haven't made enough progress on. jon: doesn't the new healthcare law propose cutting $500 billion out of medicare. >> reporter: that's been the bone of contention.