. >> we'll take a quick break and be right back with more from allen simpson and erskine bowles when we come back. kitchen may have crossed this bridge. your new car probably rode these rails. that shipment you just received was tracked by satellite. we build and maintain. we invest and innovate. so we can deliver what america needs. this year alone, freight rail companies plan to spend twenty-three billion of their own money, not taxpayer dollars, to build bridges, maintain track, and develop new technologies to keep freight rail and our economy moving. there's a lot riding on these rails. >>> we're back with more of our press pass coverage with allen simpson and erskine bowles. what is your level of confidence in a second obama term or first romney term that these issues get dealt with in a way that resolves this crisis that we're? >> first of all, i'm frightened that we're going to breach this fiscal cliff and we're going to what i would call really vet the country and take that high risk. that could lead to really horrible economic results. i met with the president and i -- >> ta

[laughter] >> erskine bowles. >> do we have erskine coming in? >> he's been a great partner with alan. he went through a very analytical and detail presentation. [laughter] we hear you. >> thank you, i deeply appreciate what you are doing. i also want to thank john for being there and senator pete domenici, who is the godmother of all deficit reduction work. alice rivlin, and the great work that they get on did on their panel as well. i appreciate all of you being there today. i'm glad i'm getting a chance to talk you as well, because i am really worried. i'm afraid that if we can't get the members of congress and the administration to put this altar partisanship aside and to finally pull together rather than pull apart, we face the most predictable economic crisis in history. rob and steve did a good job of discussing it. there is no question that if you look at just the plain map, the physical path of the nation we are on is simply not sustainable today. for me, these deficits are like a cancer. i say that because they are going to destroy your

erskine bowles, former chief of staff to president bill clinton and alan simpson, former senator from wyoming. they are, of course, the co- chairs of the simpson-bowles commission on deficit reduction. erksine bowles let me start with you. here we are at the edge of the fiscalliff, how the heck did we get here? >> because for decades we've made promises in washington we simply can't keep. and to me it's really frightening. i think that we face the most predictable economic crisis in history, fortunately for us it'i also the most avoidable, but the fiscal path we are on is simply not sustainable in these deficits are like a cancer, a cancer that will destroy our country from within. if we don't put some of this mindlessness and senseless partisanship aside and decide we're going to pull together rather than pull apart. >> darren: senator simpson let me ask you, i think people sitting at home hearing that there are all these temporary tax cuts and automatic spending cuts that are about to take effect they think, why do politicians do this? >> well they do it so they can get re-elected m

erskine bowles, if you hear allen? allen went through a very analytical and detailed presentation. >> caller: yes. >> erskine bowles, we hear you. [laughter] >> caller: thank you, i deeply appreciate what you're doing, senator nunn. i also want to thank john for being there and senator pete domenici who along with my -- my godmother of all deficit reduction work alice rivlin they did for the great work they did on their panel. i appreciate all of you being here today. i'm glad i'm getting a chance to talk to you too, because i am worried. i'm afraid that if we can't get the members of congress and the administration to put this ultra partisanship aside and pull together rather than apart we face the most predictable economic crisis in history. bob and steve did a good job of discussing it. there's no question, if you look at the plain math, the fiscal path that the nation is on is simply not sustainable today. and for me, you know, these deficits are like a cancer, and i say that because they are going to destroy our c

[laughter] erskine bowles -- >> change away my life membership. >> erskine has been our great partner with alan. have we got erskine coming in? i hope so. i hope you can hear me. erskine, did you hear alan? alan went through a very analytical and detailed presentation. >> yeah, i heard parts of it. [laughter] >> erskine bowles, we hear you. >> thank you. i deeply appreciate what you're doing, senator. i also want to thank john for being there and senator do min chi along with alice rivlin for the great work they did on their panel, and i appreciate all of you being there today. i'm glad i'm getting a chance to talk to you, too, because i am really worried. i am afraid that if we can't get the members of congress and the administration to put this ultra partisanship aside and to finally pull together rather than pull apart, we face the most predictable economic crisis in history. bob and steve did a good job of discussing it, but there's no question if you look at just the plain math, the fiscal path that the nation is on is simply not sustainable today. and for me, you know, these def

erskine bowles is a name a lot of people talk about as having a good possibility.e is someone who theoretically can work with republicans. formal wall street guy. co-president of president obama's budget commission. very good ideas widely ignored by the president. he is a guy republicans like. you want to do a major budget deal with republicans, erskine bowles can make that happen. the other guy i hear a lot about is a guy i know very well and consider a friend. very decent man who is the ceo of black rock. larry wants the job. no doubt. he has been at the top. and amazing career on wall street. top trader at first boston early in his career started black rock as a subsidiary of blackstone and spun it out and the biggest money management firm in the world and he is one of the smartest guys and if there's a european financial crisis, just anybody on wall street so he is a good guy and if you worry about wall street imploding he might be a good one. cheryl: we launched the business network and did an interview -- cool cucumber. nothing fazes that guy. this was sprayi

. >> and worked with erskine bowles on that budget project to help me. and gene sperling, the national economics adviser who also worked with me for eight years came in and we worked the last day and a half after doing all this other work. and i was just determined to get the facts right and i, and to simplify the argument. >> right. >> without being simplistic. i didn't want to talk down to people. i wanted to explain what i thought was going on. >> jon: that's what was so stunning, i think, that was why it was such a bracing speech. the phrase you mentioned earlier about getting the facts right. the idea that you would us use... you would use, in your argument, i know this is interesting, that you thought would you utilize in your artifacts. (laughter) >> jon: and they would have... you would attach numbers to them, that were real. i thought was a bold choice on your part. >> well, you know, we were talking before the show started, i think just forget about politics. think about any time in your life you have been confused or angry or frightened or res

. >> in an interview with david gregory, erskine bowles was asked about what is next.acing here. here is what he had to say. >> i am frightened we will reach the fiscal cliff embargoing to bet the country. and take the high of a risk. that could lead to horrible economic results. i met with the president. i did not have any political fear. i did not want any jobs out here. that after the election he is prepared to negotiate with the republicans and come up with a plan that falls within the framework of what we've talked about. >> i believe that, too. guest: i asked the president about this two months ago and he said the proposals by the simpson bowles commission included eliminating some of the tax deductions or cutting back on them. the health insurance deduction and the mortgage interest deduction. the president told me those would be wildly unpopular among never pass congress. i think he's right. you need some sort of serious tax reform negotiation that would take months, maybe a year, maybe longer. reagan did it in his presidency in 1986. they were able to lower th

host: first cannonballs and press -- erskine bowles and alice simpson were on "meet the press." ersking bowles was asked what is next. here is what he had to say. [video clip] >> i'm frightened that we are going to meet this fiscal cliff and see this debt to country. it could lead to very horrible economic results. i met with the president. >> you took the ax. >> i did. >> we were not looking to do that, but i'm confident talk of the election that he's prepared to negotiate with the republicans and come up with a plan that falls within the framework of what we talked about. >> i believe that, too. host: mr. woodward. guest: i ask the president about this two months ago. he said the proposals by the simpson-bowles commission included in eliminating some of the tax deductions are cutting back on the charitable deductions, health insurance deductions, and the mortgage insurance deduction, the president told me that those would be "wildly unpopular." they would never pass congress. i think he's right. you need some sort of serious tax reform negotiation that would take months, maybe

but other democrats supported it and alan simpson a republican and erskine bowles a democrat, centrist democrat were there to give him cover, he didn't support it. >> he didn't. so i asked him about that and here's what president obama said: that the closing of deductions for the home mortgage interest deduction for the health care deduction... >> rose: not the primary mortgage, it the second home, isn't it? >> no, no, it could be part of... simpson-bowles was vague. and also the charitable deduction. obama said very plainly he said that would be wildly unpopular and would not pass congress. i think he's right. but i think there is a way... >> rose: so it gets the journey started, doesn't it? >> it could. >> rose: some people are saying we believe in this and it gives us a place to... because boehner has said, you know, that they're... they were playing off of the sifrp simpson-bowles play book. >> yes. in part. particularly on tax reform. and you could get it going and... but they didn't get it going. and, you know, this is not just a story of what... excuse me, what happened last sum

on labor day, we'll hear from two men working to change our course: erskine bowles and alan simpson, the co-chairs of the commission on deficit reduction. we'll also hear from businesses and workers with jobs on the line. please join us on monday for a special report on jumping the fiscal cliff. >> susie: as we wrap up the week, we turn to author and educator lou heckler. in tonight's lou's been thinking, sleepless nights versus a clear conscious. >> it's pretty hard to see the news these days without encountering yet another story about formerly admired personalities getting caught in some form of wrongdoing. it cuts across all areas, too. sports, entertainment, politics, big institutions, local officials. is it more prevalent or do we just know more than we used to? there was a day when big news media outlets looked the other way if someone in prominence erred a bit, but that doesn't happen now. i am asked fairly often by younger colleagues how i would handle a certain situation they find themselves in a place where they see more shades of gray than black-and-white. it's not always

[talking over each other] charlie: erskine bowles is no stranger to wall street.elissa: the president wouldn't be running for reelection again so he doesn't care, a best buddy at wall street. [talking over each other] melissa: such a great knowledge of the industry. charlie: you could also make the point that the last thing he needs is a base going nuts and boycotting midterms. he gets the same thing anyway. melissa: the risk that he is good and worth it and gets political backlash. charlie: you think tim geithner is good? the fact that you don't answer that says a lot and i tell you the fresen -- not necessarily this president but one of the problems with this president and here is the reason larry might not take the job. when he sits down in his office and thinks big thoughts this president has downgraded the treasury secretary to a large extent. tim geithner is one of the players but guess who is a major player in economic policy? a woman named valerie jarrett who is a special advisor. she called a lot of shops when it comes to economics. bill bailey i know for

. >> and worked with erskine bowles on that budget project to help me.nd gene sperling, the national economics adviser who also worked with me for eight years came in and we worked the last day and a half after doing all this other work. and i was just determined to get the facts right and i, and to simplify the argument. >> right. >> without being simplistic. i didn't want to talk down to people. i wanted to explain what i thought was going on. >> jon: that's what was so stunning, i think, that was why it was such a bracing speech. the phrase you mentioned earlier about getting the facts right. the idea that you would us use... you would use, in your argument, i know this is interesting, that you thought would you utilize in your artifacts. (laughter) >> jon: and they would have... you would attach numbers to them, that were real. i thought was a bold choice on your part. >> well, you know, we were talking before the show started, i think just forget about politics. think about any time in your life you have been confused or angry or frightened or resen

president would accuse people who disagree with his tax policy unpatriotic, does that meaner mean erskine bowles and unpatriotic, the president owes everyone a apology. i am a supply side economic guy, i disagree with his policy, i am as patriotic as h he is, i am offended, i have a number of obama supporters that are appalled. neil: you are not enthused with what we said. dan, i thought, i guess he is okay with the 47% who don't pay income taxes, some legitimately ly, i know, that is a staggering figure, but that is okay? >> that is, neil, i assume you are directing it to me. neil: yes, i am. >> first of all that is a mischaracterization of what really happens, 47% don't not pay taxes, okay? >> i know we're income taxes, income taxes, all i'm saying okay it is not. >> yes, i know a lot of them, you know what i'm saying, he does not cite the fact that 47% are not paying income taxes. >> not federal income taxes, they don't pay a 1040 tax or file a 1040 form. neil: you think that can get a pass. you think that can get a pass. >> neil, let's get beyond that, let's talk about the patriotism issue,

erskine bowles, the democrat on that committee, run by simpson, and he came out and said that paul ryanest in the business. he is a democrat saying this. a guy we should look up to. >>neil: how will he do in the debate with biden? >>guest: the problem with both these guys, are they street fighters? i don't like the president's economic policies. yes biden is an aider and -- an aider and abettor. sarah palin did well against biden in 2008 and she is a secret fighter but he didn't want to attack a woman, to be honest. >>neil: what i know about biden he got 18,000 votes on primary, and hillary clinton got 18 million votes. >>guest: he is a street fighter. he has been around. >>neil: charlie, good reporting, as always. in the meantime, 40 days out and the president is pulling ahead but who says that spells trouble for governor romney? what if i told you it could be the reverse? i will explain. .. [♪...] >> announcer: with nothing but his computer, an identity thief is able to use your information to open a bank account in order to make your money his money. [whoosh, clang] you need lifelock

the first one was allen simpson, former republican senator from wyoming and erskine bowles who used to staff to president clinton. hence, the name, simpson-bowles. now it put everything, everything on the table and the result was a truly bipartisan plan to reduce america's debt by $4 trillion over ten years through spending cuts and tax reform. now you can see that green line is sort of where our debt is going over the next decades to come. and if the commission's proposals are followed, that is the blue line. that's what would have happened. under the six-step plan, federal workers would have been subject to a three-year pay freeze and the commission would also reduce the oversaul size of the government workforce through attrition. the comprehensive tax plan involved would lower personal income and corporate tax rates while broadening the base of people who pay taxes. capital gains and dividends would be taxed as ordinary income. now back door government spending for certain industries would also be removed. things like the government subsidies for the ethanol industry. a portion of t

a couple of things from your speech last night, erskine bowles and the bowles/simpson commission. you were a member of that. you criticized the president for saying he rejected the recommendations, yet you rejected the recommendations as well. >> and in the next paragraph in my speech, i said, we offered alternatives. so if you don't like this idea, offer your own. that's what we did in the house. what i did was, i took what we thought were the best ideas from bowles/simpson and added other ideas to it is and passed it. president obama did none of that. president obama said, i don't like this plan, and then offered nothing in return. >> well, he did come close with the deal with john boehner. they were negotiating -- >> that wasn't even close to fixing the problem. it was a small or is medium-sized deal -- look, cutting a backroom deal that gives you plausible didn't is not leadership. offering a plan, submitting a budget to congress that fixes the problem, that's leadership. and we haven't seen it for four years from president obama. >> now, the gm plant in janesville, you're get

host: first cannonballs and alice simpson were on "meet the press -- erskine bowles and alice simpsonere on "meet the press." [video clip] >> i'm frightened that we are going to meet this fiscal cliff and see this debt to country. it could lead to very horrible economic results. i met with the president. >> you took the ax. >> i did. >> we were not looking to do that, but i'm confident talk of the election that he's prepared to negotiate with the republicans and come up with a plan that falls within the framework of what we talked about. >> i believe that, too. host: mr. woodward. guest: i ask the president about this two months ago. he said the proposals by the simpson-bowles commission included in eliminating some of the tax deductions are cutting back on the charitable deductions, health insurance deductions, and the mortgage insurance deduction, the president told me that those would be "wildly unpopular." they would never pass congress. i think he's right. you need some sort of serious tax reform negotiation that would take months, maybe a year, maybe longer. reagan did it in his

discussed, and as part of the fix the debt initiative, which i'm chairing with ed rendell and erskine bowles, we're trying to create resources for members of congress to do. >> what's going on as far as the federal reserve bailing out this economy? did bernanke have any impact? and do you think it's extraordinary that we haven't seen any fiscal fix here, and it's really all been monetary fixes? >> yes, i agree 100%. and i think bernanke made a mistake for doing qe 3 at a lot of levels. it does risk inflation in the out years. it takes the pressure off congress to act. because it basically, by keeping interest rates so low, you're creating an artificial sugar high for the economy and the markets. i think it would have been much more constructive, if he really wanted to read the congress the riot act, to say, i'm not going to bail you out any longer, step up and deal with these issues. >> is he getting political? >> you know, that's a good question. the feds become under really inappropriate pressure from the political side of the aisle in my opinion. the last thing you want is a federal reser

. >> erskine bowles said something's got to give, that your plan would not actually reduce the deficit, that indeed taxes would have to go up on the middle class. what gives? if you're not right about your projections? >> first of all, i've got princeton, harvard, "wall street journal" and aei all saying actually that we can bring down the rates and if we limit or eliminate some of the loopholes and deductions at the high end we keep the current progressivity of the code and the same revenue coming in to the government, we get more growth in the economy. my tax policy is designed to find a way to encourage more hiring in this country. i'm very concerned that we have 23 million people who are underemployed or stopped looking for work. everything i warrant to do with regards to taxation follows simple principles -- bring our rates down to encourage growth, keep revenue up by limiting deductions and exemptions and make sure we don't put any bigger burden on middle income people. in fact i want to lower the burden on middle income people. >> but governor, where are the specifics how you ge

the national commission on fiscal responsibility and reform by erskine bowles in a bipartisan policynter debt reduction task force chaired by a pete domenici and alice rivlin. we will hear from this forum next week and we have our friend keep with us today. both groups were able to reach agreement on plans that called for shared sacrifice for substantial changes throughout the federal budget rather than some selected parts of it. both groups took our fragile economy and short-term economic concerns into account while they not credible, long-term, structural reforms. they put everything on the table. they did not pretend they can make social security and medicare untouched and get the oxide of the ditch. they did not pretend we can increase the defense budget and decrease revenue and get the oxide of the ditch. in both the house and senate, some courageous members of both parties also desired their efforts to build up pond to simpson/bowles and sent through recommendations. our annual dinner on thursday september 20 goodbye she was pleased to honor senator saxby chambliss and senator