. >> guest: melton freedman use to say it is about how much you spend and taxation and borrowing take resources from the economy and transfer to government where it is not invested but consumed. while the distribution affects different people with taxes and in essence they are the same thing. i can you can have a government that is simply so big and so much of the economy that the economy can't function regardless of how you pay for it. right now we spend 21% gdp by the government and 10% at the state level so a little over a third by the government. we are going up to a point where we will spend 40-50 percent of the economy at the government level under the current projection. i would argue if you paid for it all, you could raise tax do is pay for the spending but the functional government can't work if they are spending half of everything they are producing. >> host: what would you cut? >> guest: we have to cut across the board. the usual suspects don't get you far. >> host: the usual suspects being? >> guest: you will hear the republicans say let's cut foreign aid or kill big bird