BRET BAIER, SPECIAL REPORT: I think he said that that's another piece of this -- entitlement reform that has to be talked about long-term. I mean, Bowles-Simpson what they did, Charles, is said if you want something back in, you've got to take something off the table.
CHARLES KRAUTHAMMER: But they don't have to run for the presidency. And I supported that kind of plan and I think it's one that we're going to have to have. And I think a president who is serious about tax reform would do exactly that, try to aim for a revenue neutral tax reform. You could always add on a bit of revenue in the end but you want to aim for revenue neutrality which was in the commission report in which Obama never touched.
But [Rubio]'s proposing something different here. He's proposing tax cuts. And I think this argument with him and The Wall Street Journal over what is essentially 2% of the rate, I think it's slightly over-exaggerated. It's not going to make any difference in the real world if there's 1- or 2% lower rate. And I think what he's doing, obviously, is to try to win votes with the sweetener of the child tax credit. There's nothing particularly wrong with that.
And it is true that a pudding has to have a theme, but a tax plan doesn't have to have a theme. The theme here is you're lowering the rates, particularly on the corporate side, you're lowering the tax on investment and return -- capital gains -- which is what everybody on the right has always said is the engine to drive growth. So you have very serious pro-growth elements in here and you have a sweetener with the child tax credit. That's, you know, a rejection of Reaganism I find slightly over the top.