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CNN The Situation Room April 11, 2013 21:08:00

Belligerent approach that they ve been taking and to try to lower temperatures. nobody wants to see a conflict on the korean peninsula. once again we ll have much more coming up on the crisis with north korea. our special report here in the situation room comes up right at the top of the hour, 6:00 p.m. eastern only here on cnn. let s move on to other important news here in washington. president obama s budget blueprint has something for almost everyone to dislike. it would raise taxes on the wealthy but also could reduce some medicare and social security benefits. that has some liberals up in arms. let s go to our chief white house correspondent jessica yellin watching this story unfold. what is the very latest, jessica, the reaction to the president s budget proposals? wolf, aides here tell me the president is offering a compromise budget. but as you point out, republicans say he does not find ....

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CNN The Situation Room April 11, 2013 21:09:00

Enough savings in social security and medicare and progressive democrats are howling that he touches those programs at all. they say that s not what they elected a democrat to do. progressives are howling the president s budget is a document only republicans could love. in 2008 he said that he would not cut social security. we want the president to remember what he said and not go back on his word. yes! we did not come here to cut benefits that people rightfully earned by paying into the system. reporter: they re outraged the president proposes slashing $400 billion from medicare over the next ten years and changing the formula for social security so checks could fall by $45 the first year and by hundreds of dollars down the line. ....

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CNN The Situation Room April 11, 2013 21:36:00

Security, medicare, and actually says, you know what? you got to deal with these entitlement programs. angering his base. in the second term, presidents have to sometimes choose between their base and the history books. i think he is going for the history books. i remember bill clinton did that in his second term as well. welfare. a lot of people remember. joe, you ve written a new column in time magazine and you actually go out on a limb and think things are going to work out for the president. he might actually get that so-called grand bargain with the republican leadership in congress. a new budget deal, a new economic proposal. well, yeah. wolf, it s always good to speak to my siblings by the way. no. i think i ve been speaking to members of the senate especially. the big change here is that instead of trying to knock his head against the wall in the house dealing with john boehner and the tea party people again and again, he is going through the senate this time. and the ....

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CNN The Situation Room April 11, 2013 21:21:00

Gdp of the united states of america. if anyone believes that these financial institutions once again are not too big to fail, they are solely plis taken. the bottom line is when mr. norquist and i disagree, i think you tell the people mr. norquist do you believe that we should abolish social security, medicare? we should make substantial cuts to those programs in order to prevent taxes going up for the wealthiest people in this country? my position and the position of the american people is taxes shouldn t be raised. we should reform government spending and reign it in. the programs you have mentioned, social security and medicare, are right now heading for bankruptcy because they re not sustainable because of the policies that have been put in place and the lousy obama recovery in the last four years. we need reforms like the ryan plan which actually reform entitlements so they re still there. under your plans they re gone in a couple decades. well actually i tell you what ....

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CNN The Situation Room April 11, 2013 21:17:00

Norquist is that in 2012, and this is an important point to make, revenue is the percentage of gdp was 15.8%. that was the lowest that it has been in 60 years. the last time we had a balanced budget under clinton in 2000 revenue was a percentage of gdp of over 20%. my concern right now is that you have one out of four major corporations who are paying zero in taxes at a time when corporate profits are at an all time high. if we are serious about deficit reduction, you don t cut social security. you don t cut medicare. you don t cut disabled vets benefits. what you do is ask the wealthy and large, profitable corporations. some of them paying zero in taxes after making billions in profits. they ve got to start contributing to deficit reduction. go ahead, grover. what s wrong with that? well everything. the reason why we have very low government revenues is so many people are unemployed and income ....

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