over the next fiscal year action $5 billion over two years. it s more symbolic than substantive. it s a signal the president s going to go to the american people and say, we need to address our long-term fiscal problems. he can t do that unless he has federal employees go first. reporter: the co-chairs of the president s debt commission have already suggested ways to start reducing the debt. they reacted positively to the president s announcement. i think it s a step in the right direction. it s obviously in line with what we re recommending. little things like this, you know. a pebble in the ocean, maybe. but this is a start. reporter: the president was sporting stitches in his bottom lip. a basketball injury from friday.
what would be the impact of either scenario on the possibility of another recession? if the tax cuts expire for everybody, which neither the president or the republican congress is saying, that s a possibility given the political wittry oriole we re seeing in washington, that would be fodder for a double dip recession. that would do it. if the president s proposal is adopted and tax rates rise for upper income house holds, i don t think it will be enough to push us back in to recession, but it would be a weight on the economic recovery which, as i said, is very fragile. i wouldn t take that chance. i would i would allow no tax cuts, no tax increases, i should say, for 2011, when the recovery is so fragile. wait until 2012, 2013, when the recovery is on sounder ground. at that point, we can think about letting those tax rates rise to address our long-term fiscal problems.
revert back to what it was in the 1990s. we need do that. because we do need to address our long-term fiscal problems. our deficit is too high and our debt load too wide and we have to address that in part by higher taxes. in my view, addressing the long-term fiscal situation would be most appropriate by restraining spending growth but tax increases are part of that and tax increases on upper income individuals has to be part of that. when the economy is off and running i think we should raise rates. but not in 2011. i think the recovery that the point is still too fragile. bret: treasury secretary geithner seems to be moving faster on that. he said, the country can withstand that, the economy can withstand that, i think it is good policy. liz, is it good policy now? this is just not a good idea right now. i m with mark on this.
revert back to what it was in the 1990s. we need do that. because we do need to address our long-term fiscal problems. our deficit is too high and our debt load too wide and we have to address that in part by higher taxes. in my view, addressing the long-term fiscal situation would be most appropriate by restraining spending growth but tax increases are part of that and tax increases on upper income individuals has to be part of that. when the economy is off and running i think we should raise rates. but not in 2011. i think the recovery that the point is still too fragile. bret: treasury secretary geithner seems to be moving faster on that. he said, the country can withstand that, the economy can withstand that, i think it is good policy. liz, is it good policy now? this is just not a good idea right now. i m with mark on this.
revert back to what it was in the 1990s. we need do that. because we do need to address our long-term fiscal problems. our deficit is too high and our debt load too wide and we have to address that in part by higher taxes. in my view, addressing the long-term fiscal situation would be most appropriate by restraining spending growth but tax increases are part of that and tax increases on upper income individuals has to be part of that. when the economy is off and running i think we should raise rates. but not in 2011. i think the recovery that the point is still too fragile. bret: treasury secretary geithner seems to be moving faster on that. he said, the country can withstand that, the economy can withstand that, i think it is good policy. liz, is it good policy now? this is just not a good idea right now. i m with mark on this.