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.