the at the time ceiling crisis is already costing taxpayer respect. the government had to pay an extra $1.7 billion in interest on treasury bills yesterday. now, if congress had reached the deal two weeks ago, that money would have been saved. add to that the government stands to lose $1.2 billion in tax revenue from airline ticket sales. that's because the house adjourned for the summer recess without resolving an faa funding impasse. meanwhile after weeks of gridlock, the house finally went

along with the compromise on the national debt, but a lot of folks had to swallow hard before voting yes. one of those was cast by chris van holland, ranking democrat on the house budget committee and he's good must have st hav enoue to talk about it. >> good to be with you. >> you voted yes for the bill, but it's hardly a deal that you wanted. so tell us specifically what the negative consequences your vote will have by voting for this bill on your constituent and what did you have to sacrifice? >> well, this was an exercise in damage control. we had a situation where the first time in history, history of the republic, you had a group within the house of representatives, some of the tea party republicans, who were manufacturing a crisis over the debt creel to go try to get 100% of what they wanted on the budget. they wanted to end the medicare guarantee, they wanted to slash medicaid and the social safety net, they wanted to cut

education. >> we've been over this part, but let's go to why you went for it and how you feel your constituents are going to suffer as a result. >> i was in fact telling you that because they were not successful at the end of the day in doing that. they were not successful in trying to do that again in six months. i thought it was important to put this behind us so that we could get on with talking about jobs and the economy and have a conversation about how you have a balanced approach to reducing the deficit which will be what the super committee is charged to look at. and if they don't succeed, that will be the debate going into the next election. >> so we get the bill passed. we presume it will get by the senate. but only in the nick of time. and did it have to it take this long? what do you say to the majority of americans who are ticked off as we've seen in the polls, they are very unhappy with the way the house does business these days. >> they should be ticked off because we've never had to go

through this before. again, this is the first time in history that somebody has sort of taken this whole issue hostage, taken the credit worthy of the united states hostage. i november we' i know we've heard it before, but that's the reality. reagan lifted the debt ceiling 1 times. there's always been some debate about this, but nobody has ever tried to use to threaten the credit worthy united states in order to get a particular budget agenda through. and sad thing is i think they have 00 done lasting damage to the credit worthy of the united states and they didn't get what they want in the end because we know that the american people do not want to end the medicare guarantee and all those things. so it is an unfortunate episode. i think that the president and everyone was successful at containing the damage here. >> do you think that the anger is really going to be focused on tea party members as you would like to see it or do you think that the american public is just angry at all members of

congress? >> well, they may well be anxiousangry at huall members of congress. recognize that never before in american history has anybody sort of taken the entire economy, threatened the entire economy and credit worthy of the united states in order to get a fairly extreme agenda. at the end of the day, they did not get the agenda through. there were things they got through, but for the most part, they didn't. unfortunately, we do not have in the budget portion of this an elimination of a lot of special interest tax breaks that are add to go our deficit. but that will have to be a part of the conversation going forward. as i said, first that will be part of the discussion in the so-called super committee and if it doesn't resolved there, i'm sure president obama will make that a discussion about our values and priorities going

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right now, though, let's get a look at the markets. alison kosik joining us live from the new york stock exchange. and where do the numbers stand? >> the numbers right now trading in the negative column ahead of that senate vote on the debt deal. some weak economic numbers holding back any optimism that we could see in the markets. and if the dow doesn't rebound today, it will mark the eighth trading day in a row of losses. it's not a pretty picture right now. a lot of investors very hesitant to make any big moves in the current climate. >> thank you very much. let's take a look now, a reminder that we'll have live coverage of the senate vote on the debt deal, that is expected at the top of the hour. and we'll also bring you president obama's remarks and those are scheduled for 12:15 eastern time. the debt deal calls for more than $2.4 trillion in deficit reduction over the next it temperature ten years and it

sets up a special congressional commission to recommend where much of those savings should come from. wolf blitzer, tell us how the committee is supposed to work. >> six democrats, six republicans, named by the leadership. they're supposed to have between now and thanksgiving to come up with a plan to have significant cuts, tax reform, in effect meaning tax increases, more revenue, and entitlement reform at the same time. that's medicare, medicaid, social security decreases. decreases in projected spending. it will be difficult, very difficult. they'll make recommendations. then they'll send them to the house and senate where there will be up and down votes. if the members of this 12 member panel can't come up with a set

of plans or if the house and senate reject it or if the president were for some reason not to sign it into law, then that would trigger automatic spending cut, half defense spending, half nondefense spending. there would be cuts in medicare related programs specifically for vendors for providers, doctors, hospitals, medicare providers would have cuts. and that would be painful. so there's an incentive to come up with a deal. that's what the second tier, the second process is supposed to result in. >> gloria, there was a lot of dissatisfaction by democrats that there were no new taxes. and already there seems to be some disagreement between democrats and republicans over will that commission can or will recommend tax increases. is this a sichb thign of things come? >> it sure is.

some have suggested that the bipartisan gang of six in the senate which has a bipartisan palled plan should be appointed to this special commission so that maybe something could get done. i think we don't know what the commission is going to recommend. for example, if the commission recommends some level of tax reform which with a lower rates for everybody but take away certain deductions, would that be tax increases to a certain degree? and don't forget, you've got the bush tax cuts for the wealthy which are going to expire early in 2013. how will that play into this? because the president has vowed to veto any attempt to extend those tax cuts. so i think you have to presume that taxes will be in play, but a senior official said we'll know the minute we see who is appointed to it. so we've got it look and see who

gets on it. >> and i was going to ask you that, do we know or have any inkling who may be on it and what will the faces tell us about how this is all going to go down? >> we don't know. i would presume, for example, and i don't know if wolf agrees, that the house budget chairman paul ryan would be likely to be appointed to this. he was on the bols simpson defit commission, but he's for tax reform. so -- >> wolf, any ideas? >> i think paul ryan is a logical choice. the members of the gang of six, that would be a logical choice, as well. but in this kind of situation as gloria and our viewers know, logic isn't necessarily going to rule the day when it comes to naming these 12 members of this commission. as far as the tax increase is concerned, what the purists who

have signed grover norquist, for example, pledge, what they say is that there can be tax reform, you can eliminate certain deductions, certain subsidies, certain loopholes and you can lower the overall tax rates, but what they can't do, they can't see an mcin tax revenue in effect coming up. in other words, if you're going to eliminate loophole, you have to make sure when all is said and done, there is no increase in the amount of money that the government is getting from taxes. otherwise they would view that as a violation of that pledge no new taxes. in other words, there can't be an increase in the amount of tax money coming in from a change in the tax revenue. there can be an increase in the amount of tax revenue coming in from an improved economy. in other words, if there's greater prosperity and more people are working, more people as a result are paying taxes. there will be enhanced revenue from taxes, but they don't want to do that as a result of any changes what's called tax reform. >> and i was listening to your

interview with chris van hollen, a democrat, with great interest because what he essentially said it seems to me is that that will frame the 2012 debate because i think the democrats would be very happy it-to-go back to where they were when they were complaining with paul ryan's budget saying that republicans want to cutback to where they were when they were complaining with paul ryan's budget saying that republicans want to cut sbimgtsmentes like medicare and social security because they don't want to raise taxes on the wealthy. so i think chris van hollen would be very happy to go back to that political debate. they were making head way with it before the debt ceiling debate started. >> i have to stop there. we'll come back and talk about this in just a short while because the vote in the senate will be at high noon. the president of the united states will be speaking there after around 12:15. of course these are all eastern times. meanwhile, picture this. right now in airports all across the country, faa inspectors are doing their jobs without pay.

why? because congress couldn't get their vote together. some might say their act together. to extend funding before taking off on their summer break. what does that mean it for your safety and your next flight? we'll ask the faa administrator to explain all of it in just a moment. it was not until the university of phoenix that i was able to work full-time, be a mom, and go to school. the opportunits that i had at the university of phoenix, dealing wh profesonals teaching things that they were doing every day, got me to where i am today. i'm mayor cherie wood, i'm responsible for the largest urban renewal project in utah, and i am a phoenix. [ male announcer ] find your program at phoenix.edu.

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it's an offer too good to pass up. call or go online now to order your free priority mail flat rate shipping kit, only from the postal service. a simpler way to ship. it was a big day in the house yesterday, but not quite big enough. lawmakers went home for summer recess without deciding thousand fund the federal aviation administration. that means 4,000 faa employees will remain furloughed for the next month. the federal government will lose more than a billion dollars in tax revenues. ray lahood says construction projects at airports have been halted costing more jobs. >> it is not fair to the 70,000 construction workers who need these jobs, it is not fair to

the faa employees. >> i'm joined by faa administrator randy babbitt to talk about what's happened here. let me begin by asking does this impact the men and women in the towers and control centers and tracking our planes in the sky? >> no, i want to assure everybody in the traveling public the safety system is up and running. all of our air traffic control, all of our inspections of airplane, pilots, mechanics, though are those are ongoing. what are have ben furloughed is tens of thousands construction workers. >> the airport inspectors are working without pay right now? >> that's right. these folks, to be clear, they

will when the funding is restored, they will be paid retroactively. but right now we're asking literally hundreds of airport inspectors to did their j s ts without compensation, to carry the burden of expenses as they travel on their own credit cards. that's not right and not fair. >> and i wonder how long can they manage to do that. these are very difficult times for everyone economically. so a month or more? >> well, about if this goes on, we're trying everything we can, the secretary and i have really encouraged to have some very thoughtful discussions here to resolve this. this can't go on a day longer, much less six weeks longer. we're going to suffer a lot of long term damage. we have billions of dollars in construction money that should be going out the door that's not. this is money that's available. it's simple will he y we can't .

we have 4,000 employees put out of work. the long term damage is going to take an impact. >> and so what's at the heart of the debate here? explain to us why this was not voted upon, why congress didn't see it as so important that it had to wait until after recess. >> well, the faa's reauthorization actually expired rabach in '07. and we've been living with extensions. that's a very enefficient way to run the great transportation system we have, but it does allow to us work. this particular extension had with it some other issues making it not a clean extension and the senate was opposed to those and they severally won't pass it. in a nutshell, the issues had to

do with essential air service which is not part of the faa reauthorization. that's for a broader political debate somewhere else. but that's what's hanging it up. >> all right. randy babbitt, thanks very much. he's with the head of the faa. we'll continue to follow the story of course for anybody who flies, it impacts all of us. thank you very much, sir. let's have some good news now travelers depending on how you look at that time it. delta says that it will give out tax refunds to customers who are traveling during the suspension of nonessential faa services. they are a it wag guidelinwaiti from the irs. meanwhile a lot of folks are saying the tea party won the battle in the big debate, but did they get what they want some had we'll talk about it in the cnn political ticker. i'm phil mickelson, pro golfer.

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the house finally did its part to push through the debt bill, but a new cnn poll shows the public is less than impressed with how that was done. jim acosta, part of tbest political team on television live from washington. what are people saying about the work that the house has been doing these days? i imagine not good things. >> no, martin, it's a good thing congress is about to go on its august recess because the public is pretty much dissolved with

the job they're doing here in washington. there's a new cnn orc poll which we released at 10:00 a.m., it was conducted yesterday as an instant response to get the public's attitude about this debt ceiling deal. and i think there is one number that really sums up pretty much everybody's feelings on this subject. elected officials, how they dealt with the debt ceiling, responsible adults, 17% according to this poll spoiled children. a little bit of hyperbole, but perhaps appropriate for this subject. 77% according to our children. so americans are not feeling very good about what they just witnessed over the last few weeks. and who can blame them. it's been pretty nasty and even people inside the kacht ocapito both parties will agree to a certain extent, if not publicly, privately. >> well, a lot of people have been saying the tea party had a lot of sway. did they really get what they

wanted? >> they really did. if there's one winner in all of this, i think most people agree it is the tea party. they changed the debate here in washington. you remember that the president for months and months was advocating a balanced approach he called it. he wanted some tax increases in there. initially wanted tax increases on people making more than $250,000 a year. then he moved to the position we'll just eliminate some loopholes on some of the items in the tax code that pertain to wealthy individuals and corporations, oil companies. remember hearing him talk about the corporate jets. and in the end, the democrats and the white house got none of that. they moved toward the tea party on all of this and it's interesting one of the things that we saw in the tea party members of congress, the tea party backed members of congress, is that there was somewhat of a split. there were some tea party backed republican house freshmen that voted for the deal, some who did not. and i talked to one prominent

tea party organizer yesterday freedom works and they're not really holding anybody's feet to the fire on this. they're just satisfied and if you talk to just about any tea party group, they will tell you they're dissatisfied with the fact that they moved the debate during all the talks on the debt ceiling. so they feel like it's mission accomplished. >> we'll see how it turns out 9 next time we vote. jim, thanks very much. for the latest political news, you know where to go. cnnpolitics.com. according to polls, americans are overwhelming frustrated in the way washington has been hamming the dendling t ceiling. so what would it talk to restore your faith in lawmakers? carol costello back with your responses.