reduction but at the same time make the tax code simpler, the way you pay for that is by cutting back on tax code regulations. maybe what we would say, for example, around home mortgages is not let somebody deduct the full cost of their second home mortgage, on the first home cap it at 600,000, 700,000, 800,000. those are parts of the debate going forward. it s really a function of how low you want the rates to be in terms of what s in the current tax code. we can bring down rates, for example, on the top end about ten points. the trade-off has to be how much are you willing to give us on some of these tax exemptions let me just share one example. on charitable we might say let s go ahead and allow the first $100,000 be fully deductible and after that give a half deduction. that would still give to people who want to give to their church or a local charity, that would be fully deductible. i think there s a way. at the end of the day, we ve got to get close to $4 trillion off
that don t want to see more tax increases. you have them lined up against a bunch of senators who have been in office a longtime and want to pursue essentially business as usual. you have conservatives in the senate that are vowing to filibuster any raise in the debt ceiling unless it has the cut, cap and balance approach. i think there will be a lot a bill is going to have to pass that will have a lot of democratic support and republican support. i think it s very similar to the tarp bail out bill in 2008 where you had democrats and republicans coming together and passing something that the public basically doesn t want. they don t want the polls show that they don t want the debt ceiling to be raised. i think it s a very, very spot for john boehner. yesterday in a conference call with his members he said we need to unify, if we are not unified they will dive divide and conquer us. jon: what is the relationship
jon: gridlock on cap capitol hill, why am i not surprised? i m jon scott. it appears they are making precious little headway as the clock tick down toward a default deadline that is now eight days away. new hampshire senator kelly eye yacht that is a republican and is our guest right now. you are in favor of the cut, cap and balance legislation, correct? i am, jon, because the jon: and the u.s. senate has essentially said, we re not going to do that, we ve put it on the table. is there any chance of getting that legislation off the table? well, we weren t given a full, robust debate in the senate on cut, cap and balance, and the plan makes sense. let s cut spending immediately, cap spending so we can get our fiscal house in order and balance our budget. so we didn t get a full debate on that. i m still hopeful that plan will go forward. that said, you know, where s the president in all of this? cut, cap and balance was passed by the house to raise the debt ceiling with serious sp