. >> woodruff: then, ray suarez talks with economists martin feldstein and paul krugman about the super committee's failure to reach a deficit deal. >> brown: hari sreenivasan reports on fledgling businesses being groomed for success. >> back in the '90s, a typical startup had to go out and raise millions of dollars. it's now possible to raise $100,000 or $200,000, and if you're willing to eat ramen, that's enough money to make real progress. >> woodruff: we examine where the republican presidential hopefuls stand on foreign policy issues ahead of tonight's debate. >> brown: and margaret warner looks at a "frontline"/pro publica investigation of the american who helped plot the terror attacks in mumbai three years ago. >> woodruff: that's all ahead on tonight's newshour. major funding for the pbs newshour has been provided by: >> oil companies make huge profits. >> last year, chevron made a lot of money. >> where does it go? >> every penny and more went into bringing energy to the world. >> the economy is tough right now, everywhere. >> we pumped $21 billion into local economies, into s

they would save 95% of >> that's designed to change trillions of dollars of spending and martin feldstein has arguedhat, you know, if you had a capital base galt custom system growth is very substantially increased growth. >> what our global what points reviewed today? >> anybody who wants to could choose a personal system in the savings account. you would build it up over your working lifetime for 14 or 16 and basically the easiest model is you are allowed to put your half of the social security tax and to your own savings account the over half goes to sustain the current system. you look at that and it turns out half the amount of the social security built up over your lifetime comes to to three times. the record of broken galveston and chile. there's no question historic we that over time you do that. we would also keep the guarantee because we would never fall below the social security minimum level. so if you had terrible investment you would still get the tax paid karent. in 40 years they never paid a penny. >> the part time hours would start with cleaning the schools. >> explain th

marty feldstein help includes this proposal. the outcome would be to reinvest all of the savings from reducing preferences into broadening the base, lowering rates in order to create jobs and economic analysis on that is clear. we are willing to can see that some static tax revenue for the sake of entitlement savings will avoid the risk of call largest tax increase in american history year from now. .e've saw tax certainty rogers and small business owners are well aware that a year and a month -- on to printers and small-business owners are aware that car. our aim is to provide certainty with regard to -- to lower marginal rates to create jobs. we were not successful in that effort, because most democrats were not prepared to work in that framework. i believe it provides a way forward. all is not lost all on the pro- growth front to a i am a strong advocate of tax reform, including individual tax reform. there is an accepted consensus that lower rates are critical to our competitiveness. during our deliberations, the new york ti

. >> charlie: smart people sayites -- >> we heard martin feldstein say that at the conference the harvard economist. if you go out into these neighborhoods where people are just in the state of paralysis they don't want to buy anymore appliances, they don't want to buy new cars or to upgrade their home because they're stuck with where they are and until we get some relief of them in some fashion, some kind of long term buyout program that would make the banks take a bit of a hair cut on it, spread the risk of these mortgages. we're going to be stuck in it for a while. there are 20 million homes in peril. >> charlie: when you look at occupy wall street, what do you think? what's your assessment? >> i understand the rage. the qstion i ask myself is so what's the end game here. where do you want to go with this. what is it that you're trying to achieve? i mean i know that you're giving voice to your unhappiness with economic disparity in the country, the fact that wall street got bailed out, continue to pay itself bonuses. but we can't have wall street disappear. this is not like ending the

i mentioned marty feldstein, who gave a speech at the aei annual dinner several months ago about this very topic, and his point is that there is about $1 trillion in expenditures on the individual side, and his view is that much of that should be considered more like spending then tax policy, and i think there is some truth to that, so when you look at individual tax reform, there seems to be a consensus building around loring the marginal rates, and in the base, but either eliminating or limiting some of the tax preferences, tax breaks, tax loopholes, depending on how you want to call them, or tax expenditures. i think there are a lot of promising ideas out there. the candidates and it republicans each seem to have their own idea. i am not going to get into 9-9-9 or 20 in 20, but i think all of the expenditures in the code will be subject to close examination, and at the end of the day, i do believe as they said, i am a supporter of tax reform and lower rates for better economic growth, and i think that is part of the solution to not just our economic problems but also our deficit pr

martin feldstein has argued that if you have a capital-based system, the impact on the economy to economic growth is very substantially increase growth over the next 30 years. >> what are the bullet points of the plant that your architect who is with you today came up with? >> basically, everyone who wants to, starting with the young, but anyone who wanted to, could choose a social security savings account. you could build it up over your working lifetime. if you wanted to work part-time at 14 or 16 -- the easiest model is you are allowed to put your half of the social security tax into your savings account. the other half goes to sustain the current system. when you look at that, it turns up that half the amount you pay to social security comes to two- to-three times the amount. we would also keep a guarantee that you would never fall below the social security minimum level. so, if you had terrible investment luck, and retired at except in the wrong time, you would still get a guarantee. in chile, over 30 years, they have never paid a penny. >> part-time hours with the kids, that would st

i personally think that the mechanism that marty feldstein developed for a percentage of adjusted gross income is a very appealing way, but there are other ways. but in any case, our proposal was that we do it in a way that does not make the tax cut less progressive than it is today with one very important exception, that we would further restrict the value of reductions -- of deductions for the top two brackets such that we would generate $250 billion over 10 years for deficit reduction. in addition to the $250 billion so generated, we propose another $250 billion of revenue coming from non-controversial resources like user fees, asset sales, the feedback that comes with higher compliance from the simpler tax cut. the total revenue was $500 billion. we complemented that with $750 billion in spending reduction, and we have long since given up the idea that we live bloc -- that we were going to block grant medicaid the state's or that we would adopt a premium support model. at this point, we were looking for what was possible in the final couple of weeks before the clock ran out, so we s

social security plan announced is designed to change trillions of dollars of spending and martin feldstein has argued that, you know, if you had a capital base galt custom system growth is very substantially increased growth. >> what our global what points reviewed today? >> anybody who wants to could choose a personal system in the savings account. you would build it up over your working lifetime for 14 or 16 and basically the easiest model is you are allowed to put your half of the social security tax and to your own savings account the over half goes to sustain the current system. you look at that and it turns out half the amount of the social security built up over your lifetime comes to to three times. the record of broken galveston and chile. there's no question historic we that over time you do that. we would also keep the guarantee because we would never fall below the social security minimum level. so if you had terrible investment you would still get the tax paid karen t. in 40 years they never paid a penny. >> the part time hours would start with cleaning the schools. >> explain

martin feldman -- martin feldstein has argued that if you have a capital-based system the income is to substantial -- the output is it is -- substantially increase in growth. >> what is the plan you have brought forth of your architect today? >> the plan is basically everyone who wanted to could choose a social security savings account. you would build it up over your working lifetime for 14 or 16 and basically the easiest model is you are allowed to put your half of the social security tax and to your own savings account the over half goes to sustain the current system. you look at that and it turns out half the amount of the social security built up over your lifetime comes to to three times. the record of broken galveston and chile. there's no question historic we that over time you do that. we would also keep the guarantee because we would never fall below the social security minimum level. so if you had terrible investment you would still get the tax paid karen t. in 40 years they never paid a penny. >> the part time hours would start with cleaning the schools. >> explain this. >>

i mentioned marty feldstein who gave a speech at the aei annual dinner several months ago about this very topic. there are trillions on expenditures in the tax code cited much of it should be considered much like spending and set of tax policy. i think there is some truth to that. when you look at individual tax reform, there seems to be a consensus building around lowering the marginal rates, broadening the base by either eliminating or eliminating some of the tax preferences, tax breaks, tax loopholes, expenditures, what everyone to call them. -- whatever you want to call them. the republican candidates all seem to have their own idea, and i will not get into 9-9-9 or 2020 in 20. i think all of the current expenditures of the code will be a subject close examination. at the end of the day, i do believe, as i said, that i am a supporter of tax reform and i believe lower rates will create economic growth. i believe that is part of the solution to not just our economic problems but our deficit problem is because more growth leads to more revenues through more economic activity and mor