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Guests: Durbin, Kyl, McCarthy and Sperling

By Fox News Sunday, Fox News Sunday - July 31, 2011

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Special Guests: Gene Sperling, Rep. Kevin McCarthy, Sen. Dick Durbin, Sen. Jon Kyl

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The following is a rush transcript of the July 31, 2011, edition of "Fox News Sunday With Chris Wallace." This copy may not be in its final form and may be updated.

BRET BAIER, ANCHOR: I'm Bret Baier, in for Chris Wallace.adsonar_placementId=1502157;adsonar_pid=150758;adsonar_ps=-1;adsonar_zw=198;adsonar_zh=170;adsonar_jv='ads.adsonar.com';

The debt ceiling deadline is looming large. But now, there is strong new optimism that a deal can get done.

(MUSIC)

With time running out to forge a deal, we'll get the White House view of where things stand from Gene Sperling, the director of the National Economic Council.

Then from Capitol Hill, key members of Congress are working to craft a compromise. We'll get the latest from two key senators: Republican Jon Kyl and Democrat Dick Durbin.

And we'll hear from the House majority whip, Republican Kevin McCarthy.

Also, the recovering economy takes another hit. We'll ask our Sunday panel if the debt ceiling standoff has made matters worse or if a deal might ease our economic pain.

And we'll look back at what rollercoaster of a week it was here in Washington.

All right now on "Fox News Sunday."

(MUSIC)

BAIER: Hello, again, from Fox News in Washington.

After a tension-packed day on Capitol Hill filled with bitter partisan sniping, both Republicans and Democrats are now saying significant progress has been made toward a deal that would avert a government default.

We'll take a look at the framework of the compromise with two Senate leaders and a top House GOP official.

But, first, we begin with the White House view and Gene Sperling, the director of the National Economic Council.

Director Sperling, welcome back to "Fox News Sunday."

GENE SPERLING, DIRECTOR OF NATIONAL ECONOMIC COUNCIL: Thank you, Bret.

BAIER: Saturday, the debt ceiling negotiation shifted back to the White House.

Here is what we are hearing, reporting about a potential a deal: A debt ceiling increase of about $2.4 trillion into 2013, but in two stages; spending cuts upfront, roughly $1 trillion; a special committee to recommend cuts of $1.4 trillion or a total of the debt ceiling increase; committee must make recommendations before Thanksgiving recess; if Congress does not approve those cuts by late December, automatic across-the-board cuts go into effect, including Medicare; but lawmakers would then vote whether significant defense cuts or tax increases would also be included.

Is this accurate?

SPERLING: Well, Bret, there is no question we're approaching the final hour. And there is no question as the president has said repeatedly, if there is a will, there are multiple ways to get there.

And if you look at what Senator Reid had proposed and what Speaker Boehner had proposed, the president repeatedly if there is a will to compromise, we can -- we can get there.

And the thing to really recognize is that what the president has asked for and what we're trying to achieve is an agreement based three basic ideas. One, that we should have a down payment on deficit reduction, and that that down payment can focus spending cuts. Secondly, that need to come back for a second round of deficit reduction, more serious deficit reduction that has to have a combination of serious entitlement reform and a tax reform that we'll ask those who are most well-off to contribute. And that, third, we should have an action-forcing event, we should have something that forces all us to get our work done, that that enforcement mechanism should not be threatening the default of United States of America.

And so, as you know, the president has said that for deal to take place, we can't have at cloud of uncertainty either hanging over our heads now, or just a plan that would kick that down the road to Christmas and have us going through all of this again in such a short time.

BAIER: I know things are fluid, but does that framework sound accurate to you?

SPERLING: You know, I have bee happy to be on show, but I can't actually negotiate the details on the show.

BAIER: OK. How about this? The joint -- a lot of talk about the trigger.

SPERLING: Right.

BAIER: The joint committee of lawmakers who would be designed to get more cuts, significant cuts. If they don't find those cuts, it's possible that increases or revenue increases will not be part of the trigger or penalty.

Is the president OK with that?

SPERLING: Well, here's what I can say. The president has absolutely supported the idea that Majority Leader Reid has had of having a commission that has a goal of reaching more significant amount of deficit reduction through a combination of entitlement and tax reform. He has supported that. He would like those who appoint members of that commission, to appoint people who will try very hard to get the kind of bipartisan agreement.

And he supports having some kind of straitjacket on all of us that says if you don't get your work done, there will be action taken that make sure we do get deficit reduction. Here is the key: whatever that enforcement mechanism is, it has to give both sides an incentive to compromise, to come to the table, work something out.

There is more than one way to come up with an enforcement mechanism that gives both Democrats and Republicans an incentive to compromise on a balanced deficit reduction plan.

BAIER: So, that's the most fluid part of this whole deal right now?

SPERLING: Well, there are some important details that still need to be worked out. But I'll say, there have been serious discussions going on with the leaders of the Republican and Democratic Party and the White House over the last 24 hours. But as we've learned repeatedly, don't want to sound like Yogi Berra, but it ain't over until it's over.

BAIER: OK. So, we're not going to go down that road further on specifics.

What is the contingency plan if this does not come together or if whatever compromise happens doesn't get through the House of Representatives?

SPERLING: Well, you know, I will tell you that while the our Department of Treasury is no question working on a contingency plan and while I think every American can rest assured that before we come to point where we have missed our deadline, we will brief people on what the impact would be on failing to raise our debt limit by the deadline of August 2nd.

But, right now, our focus is on this agreement, because the key thing to understand, Bret, is that we have $500 billion of debt that comes due and has to roll over in August. We have 100 million checks that go out to Medicare, Social Security recipients, soldiers.  Print  Email  Share    Recommend Tweet

continued...

< 1 2 3 4 5> adsonar_placementId=1493988; adsonar_pid=1373767; adsonar_ps=-1; adsonar_zw=612; adsonar_zh=240; adsonar_jv='ads.adsonar.com'; FNS Transcripts

July 31, 2011

Gene Sperling Gives White House View of Debt Talks; Rep. McCarthy, Sens. Durbin, Kyl Talk Compromise

July 24, 2011

Treasury Secretary Tim Geithner, Speaker of the House John Boehner Talk Debt Ceiling Deadline ADVERTISEMENT Follow Fox News Sunday

Follow us on Twitter to get exclusive updates and announcements from the show!

Fox News Sunday is on Facebook! Coming Up on FNS: July 31, 2011

Washington braces for the final confrontation over the debt ceiling debate.  As Congress attempts to piece together legislation that will pass through both the House and Senate, we’ll hear from all sides when we’re joined by some the of the debate's most important players; The Obama Administration's Director of the National Economic Council Gene Sperling, House Majority Whip Kevin McCarthy (R-CA), Senator Dick Durbin (D-IL), and Senator Jon Kyl (R-AZ).

ADVERTISEMENT Wallace Watch

July 31, 2011

Reports of a Deal: Key Players React

The president's director of the National Economic Council, Gene Sperling reacted to reports that there is a deal ...

Panel Plus: July 31, 2011On This Day: July 31, 1971Fox News Sunday Snippets: July 31, 2011 Connect With FNS FacebookTwitterEmailFree PodcastBlogHulu On This Day

July 31, 2011

On This Day: July 31, 1971

Apollo 15 crew members David Scott and James Irwin became the first astronauts to use a Lunar Roving Vehicle

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The following is a rush transcript of the July 31, 2011, edition of "Fox News Sunday With Chris Wallace." This copy may not be in its final form and may be updated.

BRET BAIER, ANCHOR: I'm Bret Baier, in for Chris Wallace.

The debt ceiling deadline is looming large. But now, there is strong new optimism that a deal can get done.

(MUSIC)

With time running out to forge a deal, we'll get the White House view of where things stand from Gene Sperling, the director of the National Economic Council.

Then from Capitol Hill, key members of Congress are working to craft a compromise. We'll get the latest from two key senators: Republican Jon Kyl and Democrat Dick Durbin.

And we'll hear from the House majority whip, Republican Kevin McCarthy.

Also, the recovering economy takes another hit. We'll ask our Sunday panel if the debt ceiling standoff has made matters worse or if a deal might ease our economic pain.

And we'll look back at what rollercoaster of a week it was here in Washington.

All right now on "Fox News Sunday."

(MUSIC)

BAIER: Hello, again, from Fox News in Washington.

After a tension-packed day on Capitol Hill filled with bitter partisan sniping, both Republicans and Democrats are now saying significant progress has been made toward a deal that would avert a government default.

We'll take a look at the framework of the compromise with two Senate leaders and a top House GOP official.

But, first, we begin with the White House view and Gene Sperling, the director of the National Economic Council.

Director Sperling, welcome back to "Fox News Sunday."

GENE SPERLING, DIRECTOR OF NATIONAL ECONOMIC COUNCIL: Thank you, Bret.

BAIER: Saturday, the debt ceiling negotiation shifted back to the White House.

Here is what we are hearing, reporting about a potential a deal: A debt ceiling increase of about $2.4 trillion into 2013, but in two stages; spending cuts upfront, roughly $1 trillion; a special committee to recommend cuts of $1.4 trillion or a total of the debt ceiling increase; committee must make recommendations before Thanksgiving recess; if Congress does not approve those cuts by late December, automatic across-the-board cuts go into effect, including Medicare; but lawmakers would then vote whether significant defense cuts or tax increases would also be included.

Is this accurate?

SPERLING: Well, Bret, there is no question we're approaching the final hour. And there is no question as the president has said repeatedly, if there is a will, there are multiple ways to get there.

And if you look at what Senator Reid had proposed and what Speaker Boehner had proposed, the president repeatedly if there is a will to compromise, we can -- we can get there.

And the thing to really recognize is that what the president has asked for and what we're trying to achieve is an agreement based three basic ideas. One, that we should have a down payment on deficit reduction, and that that down payment can focus spending cuts. Secondly, that need to come back for a second round of deficit reduction, more serious deficit reduction that has to have a combination of serious entitlement reform and a tax reform that we'll ask those who are most well-off to contribute. And that, third, we should have an action-forcing event, we should have something that forces all us to get our work done, that that enforcement mechanism should not be threatening the default of United States of America.

And so, as you know, the president has said that for deal to take place, we can't have at cloud of uncertainty either hanging over our heads now, or just a plan that would kick that down the road to Christmas and have us going through all of this again in such a short time.

BAIER: I know things are fluid, but does that framework sound accurate to you?

SPERLING: You know, I have bee happy to be on show, but I can't actually negotiate the details on the show.

BAIER: OK. How about this? The joint -- a lot of talk about the trigger.

SPERLING: Right.

BAIER: The joint committee of lawmakers who would be designed to get more cuts, significant cuts. If they don't find those cuts, it's possible that increases or revenue increases will not be part of the trigger or penalty.

Is the president OK with that?

SPERLING: Well, here's what I can say. The president has absolutely supported the idea that Majority Leader Reid has had of having a commission that has a goal of reaching more significant amount of deficit reduction through a combination of entitlement and tax reform. He has supported that. He would like those who appoint members of that commission, to appoint people who will try very hard to get the kind of bipartisan agreement.

And he supports having some kind of straitjacket on all of us that says if you don't get your work done, there will be action taken that make sure we do get deficit reduction. Here is the key: whatever that enforcement mechanism is, it has to give both sides an incentive to compromise, to come to the table, work something out.

There is more than one way to come up with an enforcement mechanism that gives both Democrats and Republicans an incentive to compromise on a balanced deficit reduction plan.

BAIER: So, that's the most fluid part of this whole deal right now?

SPERLING: Well, there are some important details that still need to be worked out. But I'll say, there have been serious discussions going on with the leaders of the Republican and Democratic Party and the White House over the last 24 hours. But as we've learned repeatedly, don't want to sound like Yogi Berra, but it ain't over until it's over.

BAIER: OK. So, we're not going to go down that road further on specifics.

What is the contingency plan if this does not come together or if whatever compromise happens doesn't get through the House of Representatives?

SPERLING: Well, you know, I will tell you that while the our Department of Treasury is no question working on a contingency plan and while I think every American can rest assured that before we come to point where we have missed our deadline, we will brief people on what the impact would be on failing to raise our debt limit by the deadline of August 2nd.

But, right now, our focus is on this agreement, because the key thing to understand, Bret, is that we have $500 billion of debt that comes due and has to roll over in August. We have 100 million checks that go out to Medicare, Social Security recipients, soldiers.  Print  Email  Share    Recommend Tweet

continued...

< 1 2 3 4 5> adsonar_placementId=1493988; adsonar_pid=1373767; adsonar_ps=-1; adsonar_zw=612; adsonar_zh=240; adsonar_jv='ads.adsonar.com'; FNS Transcripts

July 31, 2011

Gene Sperling Gives White House View of Debt Talks; Rep. McCarthy, Sens. Durbin, Kyl Talk Compromise

July 24, 2011

Treasury Secretary Tim Geithner, Speaker of the House John Boehner Talk Debt Ceiling Deadline ADVERTISEMENT Follow Fox News Sunday

Follow us on Twitter to get exclusive updates and announcements from the show!

Fox News Sunday is on Facebook! Coming Up on FNS: July 31, 2011

Washington braces for the final confrontation over the debt ceiling debate.  As Congress attempts to piece together legislation that will pass through both the House and Senate, we’ll hear from all sides when we’re joined by some the of the debate's most important players; The Obama Administration's Director of the National Economic Council Gene Sperling, House Majority Whip Kevin McCarthy (R-CA), Senator Dick Durbin (D-IL), and Senator Jon Kyl (R-AZ).

ADVERTISEMENT Wallace Watch

July 31, 2011

Reports of a Deal: Key Players React

The president's director of the National Economic Council, Gene Sperling reacted to reports that there is a deal ...

Panel Plus: July 31, 2011On This Day: July 31, 1971Fox News Sunday Snippets: July 31, 2011 Connect With FNS FacebookTwitterEmailFree PodcastBlogHulu On This Day

July 31, 2011

On This Day: July 31, 1971

Apollo 15 crew members David Scott and James Irwin became the first astronauts to use a Lunar Roving Vehicle

FNS Poll Take Our Poll(survey software) Video Politics U.S. Opinion Entertainment Scitech Health Travel Leisure World Sports Weather Facebook Twitter YouTube RSS Newsletters try { var pageTracker = _gat._getTracker("UA-3128154-2"); pageTracker._setDomainName(".foxnews.com"); pageTracker._trackPageview(); } catch(err) {} $.ad.pre(); setPageVideo(); // video //= 0) {query += 'url' + i + '=' + encodeURIComponent(links[i].href) + '&';}}document.write('');})();//]]> var _gaq = _gaq || []; _gaq.push(['_setAccount', 'UA-3128154-2']); _gaq.push(['_trackPageview']); _gaq.push(['_trackPageLoadTime']); (function() { var ga = document.createElement('script'); ga.type = 'text/javascript'; ga.async = true; ga.src = ('https:' == document.location.protocol ? 'https://ssl' : 'http://www') + '.google-analytics.com/ga.js'; var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(ga, s); })();

The debt ceiling deadline is looming large. But now, there is strong new optimism that a deal can get done.

(MUSIC)

With time running out to forge a deal, we'll get the White House view of where things stand from Gene Sperling, the director of the National Economic Council.

Then from Capitol Hill, key members of Congress are working to craft a compromise. We'll get the latest from two key senators: Republican Jon Kyl and Democrat Dick Durbin.

And we'll hear from the House majority whip, Republican Kevin McCarthy.

Also, the recovering economy takes another hit. We'll ask our Sunday panel if the debt ceiling standoff has made matters worse or if a deal might ease our economic pain.

And we'll look back at what rollercoaster of a week it was here in Washington.

All right now on "Fox News Sunday."

(MUSIC)

BAIER: Hello, again, from Fox News in Washington.

After a tension-packed day on Capitol Hill filled with bitter partisan sniping, both Republicans and Democrats are now saying significant progress has been made toward a deal that would avert a government default.

We'll take a look at the framework of the compromise with two Senate leaders and a top House GOP official.

But, first, we begin with the White House view and Gene Sperling, the director of the National Economic Council.

Director Sperling, welcome back to "Fox News Sunday."

GENE SPERLING, DIRECTOR OF NATIONAL ECONOMIC COUNCIL: Thank you, Bret.

BAIER: Saturday, the debt ceiling negotiation shifted back to the White House.

Here is what we are hearing, reporting about a potential a deal: A debt ceiling increase of about $2.4 trillion into 2013, but in two stages; spending cuts upfront, roughly $1 trillion; a special committee to recommend cuts of $1.4 trillion or a total of the debt ceiling increase; committee must make recommendations before Thanksgiving recess; if Congress does not approve those cuts by late December, automatic across-the-board cuts go into effect, including Medicare; but lawmakers would then vote whether significant defense cuts or tax increases would also be included.

Is this accurate?

SPERLING: Well, Bret, there is no question we're approaching the final hour. And there is no question as the president has said repeatedly, if there is a will, there are multiple ways to get there.

And if you look at what Senator Reid had proposed and what Speaker Boehner had proposed, the president repeatedly if there is a will to compromise, we can -- we can get there.

And the thing to really recognize is that what the president has asked for and what we're trying to achieve is an agreement based three basic ideas. One, that we should have a down payment on deficit reduction, and that that down payment can focus spending cuts. Secondly, that need to come back for a second round of deficit reduction, more serious deficit reduction that has to have a combination of serious entitlement reform and a tax reform that we'll ask those who are most well-off to contribute. And that, third, we should have an action-forcing event, we should have something that forces all us to get our work done, that that enforcement mechanism should not be threatening the default of United States of America.

And so, as you know, the president has said that for deal to take place, we can't have at cloud of uncertainty either hanging over our heads now, or just a plan that would kick that down the road to Christmas and have us going through all of this again in such a short time.

BAIER: I know things are fluid, but does that framework sound accurate to you?

SPERLING: You know, I have bee happy to be on show, but I can't actually negotiate the details on the show.

BAIER: OK. How about this? The joint -- a lot of talk about the trigger.

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