i would put indiana governor, mitch daniels in that category and put hailey barber frommy. think those are three people with experience. >> and contacts. >> yeah. >> they know the scene. >> they lack national -- >> charisma. >> which one? you think barbra is ahead of all the others? >> i would say if i were to buy a penny stock, it would be tim pawlenty or mitch daniels. >> pawlenty doesn't think very highly. >> and people don't figure who he was. > i think these guys can start from scratch. obama started from scratch. >> if pawlenty stepped into iowa and won it somehow, came from behind and won that thing, he would suddenly clip romney. >> why are mike and john on this list? >> on the list because he is a u.s. senator. he's an attractive guy. a congressman and i don't know when the last time a congressman ran for president and got the nomination. >> mitch daniels has a lot of good ideas for government. >> who is he? >> he's the governor of indiana. >> what position did he hold? >> working in the white house. >> what position in the white house? >> officer management and bu

the establishment is looking around trying to find people like bash our or mitch daniels. chris: can you square the circle? exciting tea party favorite that's credible enough to win the presidency? >> it would be pretty hard to square that circle. possibly, you could imagine someone like newt gingrich. but someone who is a little bit more successful. and would get the tea party behind him. >> you defined the dynamics in 2012. which semi-establishment candidate can get the support. chris: this is fascinating. we asked, who has the best chance to beat obama in 2012. the meter is divided. three of you say indiana governor mitch daniels. governor pawlenty. then two for mitt romney. and one went for jeb and one for new jersey governor. some say it's too hard to pick. yikes. this is a very mixed up field. >> republicans don't elevate their v.p. nominee, but usually the person who ran for president. they didn't get through. so the sarah palin dynamic is a little bit different because she that gives romney a chance. chris: you pick pawlenty in this meter. >> i did. i had to pick s

. >> i am wondering if you heard from mitch daniels after publicly encouraging him to go in that direction. >> i had a good conversation with him in indiana just a week or so ago. he has made no commitment. this will not be the time in which we may get announcement that he will need to make at some point. i think he would be an outstanding candidate and a great president, but he will have to make that decision himself. >> senator, thank you for your time. we have just finished a wide- ranging conversation with the lead republican on foreign affairs, senator dick lugar. you mentioned this is a big week for foreign policy issues. i wonder if what you heard from the senator recapped the middle east peace process in your eyes, so let's start with matt. >> i thought he had some very interesting points to make about the president's speech on iraq, saying that it was probably a mistake to effectively declare victory, or not declare victory in so many words, but to say the plan is achieved and we are out on schedule. i thought it was interesting that he disagreed with the that he disagreed with th

. >> you also mentioned the possibility of mitch daniel putting his hat in the ring for president. i wonder if you've heard from him. >> well, i've had a good conversation with him in indiana just a week or so ago, and he has made no commitment and this will not be the time in which we make an announcement that he will need to make at some point. i have encouraged him to run. i think that he would be an outstanding candidate and a great president. but he will have to make that decision himself. >> thank you for your time this week. >> thank you. >> matthew lee covers the state department. we just finished a wide-ranging conversation with the lead republican on the foreign relations committee. i'm wondering if you mentioned this is a big week coming ahead for foreign policy issues. i'm wondering what you learned from the senator recaps the hope for the middle east peace process or the president's speech. >> i hauth he had some fairly interesting points to make about the president's speech on iraq and saying that it was probably a mistake to effectively declare victory or perhaps not

we've seen mitch daniels in indiana and governors complaining about the additional spending congress has been doing but putting it to use. >> lehrer: quickly, wilbur ross died. another giant of the congress, former senator ted stevens died today. both had hard falls , but here they are as a matter of history, on both sides of the ledger. >> there's no doubt their legislative legacies are intax. they were chairman and leaders and longtime members of the house and senate, but of course they both new their befores would be written with remarks about ethic scandals that brought an end to each of their careers so that has been what tainted their long legislative record. >> lehrer: all right, david, thank you. >> ifill: now, to the continuing cleanup along the gulf of mexico. the government's point man on the oil spill-- retired coast guard admiral thad allen-- announced today that he plans to step down by the end of september once he's satisfied with recovery plans. no oil has leaked since mid- july. but there are questions about what to do with the thousands of tons of waste the disaster

mitch daniels, also extremely impressive. circumstances much less dire.did not take office in the midst of a budgetary crisis, but also, like christie, have build a constituency for a limited government conservative than -- conservatism. has slimmed down the budget. and daniels tells his people all the time, we have one goal -- we want to increase the net the pole -- disposable income of the hoosiers in here in indiana. i would get some complaints now. i did see the movie. that is going to be the goal of government. i think that is a very good -- i think republicans nationally can take that admonition to heart. host: karl rove rights in today's "wall street journal." echo in the comments about change being seen on the gubernatorial level. tallahassee, florida. it dawned on independent line. caller: thank you four mccall and good morning -- thank you for taking my call, and good morning. i have a financial issue that has been on my mind as of late regarding both parties. i am an independent. i have no party affiliation. as of late, it seems that republican

mitch daniels, also extremely impressive. circumstances much less dire. he did not take office in the midst of a budgetary crisis, but also, like christie, have build a constituency for a limited government conservative than -- conservatism. has slimmed down the budget. and daniels tells his people all the time, we have one goal -- we want to increase the net the pole -- disposable income of the hoosiers in here in indiana. i would get some complaints now. i did see the movie. that is going to be the goal of government. i think that is a very good -- i think republicans nationally can take that admonition to heart. host: karl rove rights in today's "wall street journal." echo in the comments about change being seen on the gubernatorial level. tallahassee, florida. it dawned on independent line. caller: thank you four mccall and good morning -- thank you for taking my call, and good morning. i have a financial issue that has been on my mind as of late regarding both parties. i am an independent. i have no party affiliation. as of late, it seems that republ

mitch daniels recently said, "you would be amazed at how much government you never mess."e is probably right. [laughter] just as we reevaluate how the federal government spends money, which it also rethink about how the federal government collects money. washington's backwards accounting a sense that tax relief expires all the spending will always continue, setting up higher taxes and more spending. that is unless congress increases the taxes. congress regularly ends up rubber stamping and haphazard collection of tax policies from one year to the next. this is a prime meant for example of this. more provisions get added each and every year. the with any ever seen the fallout of the package. the research and development tax credit, exemptions for the film industry, an extension and modification of a tax credit for the steel industry fuel -- how about the mine rescue team training tax credit, or taxing critics that we can invest in the district of columbia? are they worth it? many of them are but we could go ahead and extend all of them temporarily, usually right at the last

washington take for granted the support of the social conservatives and do so at their peril and mitch daniels, well intentioned, but the same inkling inhat he wants to have a truce on the social issues. we are not going to let a social issues trees. if the tea party members will remember that, they will be even more successful than they will otherwise. host: the caller referred to dick armey. he writes and "the wall street journal" that the movement is not seeking a junior partnership with the republican party, it is aiming for a hostile takeover. the two are out with a new book today. there are calling on tea party candidates and republican candidates to sign their contract from america. it is on their website, thecontract.org. if the goods have their website, 10 different book points -- south carolina, democratic line. good morning. caller: i was just looking at the things. passing and all of the above energy policy. i don't know what to say. there are some of the problems faced in this country. -- the caller who said sarah palin was a comte -- oprtunist, red and the money. just as dick arm

washington take for granted the support of the social conservatives and do so at their peril and mitch daniels, well intentioned, but the same inkling in that he wants to have a truce on the social issues. we are not going to let a social issues trees. if the tea party members will remember that, they will be even more successful than they will otherwise. host: the caller referred to dick armey. he writes and "the wall street journal" that the movement is not seeking a junior partnership with the republican party, it is aiming for a hostile takeover. the two are out with a new book today. there are calling on tea party candidates and republican candidates to sign their contract from america. it is on their website, thecontract.org. if the goods have their website, 10 different book points -- south carolina, democratic line. good morning. caller: i was just looking at the things. passing and all of the above energy policy. i don't know what to say. there are some of the problems faced in this country. -- the caller who said sarah palin was a comte -- opportunist, red and the money. just as dick

mitch daniels said you would be amazed at how much government you never miss. he is probably right.just as we've reevaluate how the federal government spends money, we should also think about how the federal government collects money. washington's backward accounting assumes that tax relief expires while the spending will always continue. setting up a built-in bias, or higher taxes and more spending. that is unless congress extends the tax break. congress is regularly reverse stamps tax files from yoone-year to the next. this year's taxes extended bill has 71 separate tax provisions in it. totaling $31.6 billion of tax relief. the more provisions get added each and every year, but you ever seen to fall out of the package. -- but few ever seem to fall out of the package. there is a tax credit for the steel industry. how about the-rescue team tax credit? or tax incentives so you can invest in the district of columbia? are they worth it? many of them are. we just go ahead and extend all of them, usually at the last minute. for washington, that is just business as usual, but is no way t