hardly radical. reporter: changes in social security are only to make the program solvent. not for deficit reduction. they don t like everything in the plan but see an urgent need to act and keep this process moving. megyn: jangle, thank you. president obama announcing a small step to slow down federal spending. he ordered a two-year salary freeze. he says that could save $28 billion. but there is a growing angry reaction from some of those federal workers. eric bolling is anchor of follow the man question. he has follow the money. reporter: they are not getting fired. they are just going to freeze the pay. we are talking 1.3 trillion added to the deficit this year alone. it s not a ton of money.
wealthier people pay more and receive less along with some other changes in order to make the program solvent. there d be automatic cuts of about 22% in 2037,22% cuts. but the big one, really, is medicare, and they would limit spending there in several ways as well, all of them controversial, of course. as you know, we have tens of trillions of unfunded liabilities, that means more in many promises that we ve made than we have money to pay for, and even kentuckying into the diving into the most controversial topics, the always-colorful alan simpson said they got a better reaction than they anticipated. tell you one thing, we re pleased at the general reaction of the public that finally somebody quit bsing them and put something out on the table that slaughtered every sacred cow in the field. [laughter] reporter: so no sacred cows left standing many in the bowles/simpson plan, but there are plenty of sacred cows in
instance, you say the federal government, united states of america will be bankrupt in four years. why? well, because who s gonna bail out the federal government? they ve been bailing us out. they ve been reimbursing us at a higher rate. we ve got all these medicaid waivers coming through. the country has been generous to keep this program solvent. who s going to bail out the united states of america? the thing the people have to remember is we started this experiment with the highest rates of coverage, insurance coverage of any state in the country. so if you look at texas and you look at california, states that have 20% uninsured, what s that mean for the country? one of the interesting things that you have said is that, you know, when the president, the white house points to massachusetts, mass care and says it s working up there, the administration has been pumping an awful lot of money into your program.
ronald reagan s tax bill. he came in what was the bill? he wanted 30% across the board for all taxpayers, the same cut in rates, and a number of folks who were working poor were dropped from the rolls. you cannot call that a just for the rich tax cut. sure, he cut taxes from 70% to 20% and the economy boomed for 20 years. through reagan and clinton, we created 40 million jobs. reagan gets the credit for the clinton boom? all right. he gets credit for cutting the budget and keeping it down. frankly, running a small conservative economic policy. i ll give him credit. one of the sad but one of the sad it kept the economy going. and so did volcker. but but ronald reagan raised the payroll taxes which really hurt but joan, they re for social security. joan, they re for social security. they make the program solvent. there were other ways to do it. he was a person who accommodated reality in a way that the tea
with democrats. yours is a caricature of ronald reagan s tax bill. he wanted 30% across the board for all taxpayers, the same cut in rates, and a number of folks who were working poor were dropped from the rolls. you cannot call that a just for the rich tax cut. sure, he cut taxes from 70% to 20% and the economy boomed for 20 years. through reagan and clinton, we created 40 million jobs. reagan gets the credit for the clinton boom? all right. frankly, running a small conservative economic policy. i ll give him credit. one of the sad but one of the sad it kept the economy going. and so did volcker. but ronald reagan raised the payroll taxes which really hurt but joan, they re for social security. joan, they re for social security. they make the program solvent. there were other ways to do it. he was a person who accommodated