Cspan. Ok. Com first, jeremy herb with the hill was quoted joining us on the phone. What did they get out of this . What did the two sides agree to . Some 63 billion dollars in sequester savings over the next two years. Have for defense and half for discretionary. The numbers right in between where the house and the senate each wanted. They picked a number right between the two. When it comes to sequester, the automatic spending cuts that were agreed to under the budget control act of 2011, how do they deal with it . 63 billion is restored. What does that mean . There are still some sequestration that happens. How much and when . Back somey will give of the sequester cuts, but still not all the way there. The pentagon, for instance, they will reduce sequester by 22 billion next year. That would have meant that the budget level that they are at this year would have been cut by an additional 22 billion. Is still 30 billion lower than the budget proposed by the pentagon and by the house and at the presequester spending level. So they will stop to find out how to lower spending under sequester. This will allow them to really avoid a lot of the pain in terms of types of readiness and cuts to military programs at a said would be coming in 2014 without kind of without some kind of deal. Host why did they go for two years . We have gone from crisis to crisis, all of these 11th hour deals. Id if he goes through come think we really will see that go away for the next year or two. There are still some issues i will have to be dealt with. This does not address the debt ceiling, for instance. That is coming up in the spring, even if we do get this budget to past. Wery october, and set of are always getting through cr and, if this cup pass, for the first time in a while, we would not have to worry about that, over. About that come october. We hear from military letters military zalicus from the hell. The crisis to crisis governing. Host what is not in this deal . Guest a few things. The debt ceiling is one of them. To getts had also wanted an extension on Unemployment Insurance into the bill, but that is also something that patty murray and paul ryan decided not to touch. It is a very modest deal. It is not the grand bargain that long been thought been sought. But they tried to get some agreement. They didnt really tackle entitlements. They did not tackle revenues. What they did at least find a way to come to agreement on something, osha had not been able to do before. 63 billion in sequester cuts, the automatic spending cuts are restored, and the deal prevents Government Shutdown through october 2015. No unemployment that if its extended, the longterm Unemployment Benefits. The deficit cut by 22 billion over a decade. How did they do that . Guest they found a way to cut 85 billion over the next two years. They did that in a few ways. They are making federal workers in the military pay more into their pensions. 6 billion in savings that way. They also used budget tricks to extend the two percent sequester cut for medicare spending. That is another two years. So that now last two 2023 instead of 2021. There will also be higher airline fees now as a result of this this deal goes through as a result if this deal goes through. Host why did they do that . They had to look under every renny to find a way to get money, to basically get stuff that both sides would agree to without tackling does big things. That is not the easiest task. Airline fees, obviously not everyones happy with that. Im sure travelers are now, that is now appealing to hear. But it is a way for them to get money. Paul ryan can now go to his want toce, who does not increase spending who says that its ok because this deal byuces the deficit as well 23 billion. So you will hear paul ryan saying that a lot in the next few weeks. Host what happens next . Ryan is the budget chairman. Is very wellliked by republicans. We will get the first sense over whether republicans will get well go along with us. We will get statements of support from Speaker Boehner and leader cantor. The house wants to vote on it this week to get it done. We conceived probably friday or maybe thursday. On the democratic side, too, this is not something they are excited about. Because of the Unemployment Insurance, because of the making federal workers taymor who have already been hit by sequester and the budget top democrat on the Budget Committee, there will be a lot of lobbying. Tea party groups will come out against it. Arco rubio potentially, it comment an opponent of paul rubio, an host opponent of paul ryan. We are learning that the House Rules Committee will take this later today to get it on the senateloor with the voting on an next week. You mentioned the tea party folks. Congressmaneet file tim hills host what do you make of that . Guest this shows that it will not be an easy sell despite ryans pledge that this cuts the deficit. Conservative Tea Party Republicans like the sequester. For the first time in a long while, they have fought government spending. This deal raises the level from 967 million to one point 01 2 trillion. So they are clearly not happy about that doesnt tackle entitlements. It doesnt really get what they see as the biggest driver of the debt. Call these fees taxes. That will certainly be an argument we hear from conservative critics. And, what they do on this will be interesting. Americans for prosperity, and lobbyey tried to republicans of a deal. Need democratic votes as well as republican votes to pass through the house. Host all right, jeremy herb from the hill, thank you, sir. Your phone calls now. Diane, democratic caller, what do you think . Caller i was sinking about the deal that they made yesterday. With the cuts in everything, they are not thinking about the people out there who have families with unemployment, not extending it. What do they do if we decide to go on the ballot next year and reduce their pay and let them see how they do it . And let them pay for their own insurance. How can some of the democrats go as go with such deals . People around the world are looking at america. Anything toow up help jobs back here. If they stop helping these companies that have jobs overseas or the cayman islands. We can charge them every week for those jobs overseas. They are hiding their money. Thank you very much. Host ok, patrick in photo. Is cspanod morning, never going to talk about the lawsuit that israel brought against china for state sponsored terrorism . There is a frontpage article on the wall street journal. Host if you have a suggestion for us, you can tweet us. Or you can email. But what do you think about the budget deal that was announced . Caller i would like to see c span really do an in depth defense budget. At it, Corporate America would consolidate their manufacturing. But when it comes to defense products, they spread all over the country to make sure all these senators get their they government projects to bring home to increase employment. You want to do something for the trait for detroit . Military moving some bases from the southeast into upstate new york . I would like to see how much applause or how much of these republicans that lose their defense spending for manufacturing and bases, how much they would be thrilled about defense spending than. Host do you think they should have kept sequestration in place . Caller i can remember when clinton was supposedly against america for all the defense cuts and then clintons military fought in afghanistan and iraq. I would say the first thing to cut is fdic insurance. Who has a quarter Million Dollars in the bank . The average person does not even have 10,000 in the bank. And why the federal government is guaranteeing Bank Accounts up to a quarter Million Dollars is beyond me. Thank you for taking my call. Host we will go to to james in washington. You are on the air. Caller good morning. I was just wondering how they cut the unemployed unemployment when there are no jobs out there. T kind of blows my mind what are these people going to do when there is no jobs . Will they stand in soup lines like back in the 1920s . My point and not cut the corporations tech loopholes where they are sending money off to the cayman islands. I just needed to get that off my chest. Host we will actually be talking about that, the an opponent benefits, the impact they have had on the economy and the fact that they are not included in this budget deal that was announced last night. This is what chairman paul ryan had to say when he stood next to the Senate Budget chairwoman, patty murray, last night in pressprice in their conference about what he got out of this deal. [video clip] i am getting more deficit reduction. So the deficit will go down more by passing this than if we did nothing. That is point number one. Point number two, there are no tax increases your. We areumber three, finally starting to deal with autopilot spending. The mandatory spending that has not been addressed by congress for years. This is it easy. This is the first divided government budget agreement since 1986. The reason why we havent done a budget agreement when both houses were controlled by other parties is because it is not easy to do. We know we are not going to get everything we want and she is not going to get everything they want. Host that was the chairman of the House Budget Committee talking about the deal that they struck yesterday. And talking to conservatives about voting for it. House rules committee together later today to mark this up then design a rule for florida bay. Leadership is hoping to get it on the floor in the house this week and a vote to approve it and in the senate would take it up next week. Here is how the senator majority leader harry reid react to the deal. Heres what he tweeted at yesterday. And the white house also on twitter yesterday reacting there is the white house tweet. You can go to the white house to read the full statement. And then Speaker John Boehner also putting this out yesterday in a tweet. James excuse me, david in new york, independent color. Caller good morning. Thank you for listening to my comment. One simple question. I was an actual private banker and i never set up offshore trust for american citizens because it is against the law, because the tax law says that every individual citizen has to pay income tax on their worldwide income, wherever they are in it for whatever reason. Savings account in new guinea, a company can you in kenya. Know,ations, as we all they get to park their money all over the world and not pay taxes. I dont understand why corporations have such a huge preference on skipping and avoiding taxes and american citizens like you and me dont. Host so you think this deal should have included closing tax loopholes. Www. Cspan. Org apps caller absolutely. Host that was to big of a reach. She would have loved to included that in a final bill, but it was too difficult to get to. Is it better to have this, what people are calling a modest first step . Caller i guess, you know, when you have a baby, he takes baby steps. But these guys are babies. Im so tired that they can get together on this or its too much. Like tip compromise oneill and reagan did. Nobody gets everything they want, everybody gets something. Inexcusable that everybody says oh, i cant make this deal. We have the republicans, the democrats, the conservatives, the tea party. Do your job. The end result is that you are supposed to have a budget every year. We are not supposed to have sequesters and lay off people and have all this other business. To beerybody seems apathetic and accepted. I find it disgusting. I would fire every single one of them if i was chairman of the board and get a new group. Host ok, david. Jim in gainesville, texas. Caller what i wanted to say is in therepresentatives house, on both sides, but particularly the conservatives, will accept this. I hear callers talking about corporations having some tax and manages for off shoring their funds. Listen, that is a Pretty Simple fix, allowing repatriation. The people who are calling do not seem to understand you cant. Orce companies to do things the largest resort that way. They are there to protect their interests. But we can make it attractive to bring the money back and bring money back to grow the private economic engine. Host all right, jim. On twitter and then jim tweets in. And the House Minority leader, nancy pelosi for the democrats, tweeted this out. She had this to say. And as you heard from jeremy herb from the hill newspaper, it will take out democrats and republicans to pass the steel. Senate Minority Leader Mitch Mcconnell had this to say. Cheryl, boulder, colorado, democratic caller. Caller i have two comments about this. The first is i think they really ought to be ashamed of themselves that they are not talking about restoring Unemployment Compensation. People whoamps for cant get a job because there are no jobs. Secondly, i think it is really ironic that they are not willing forake away the tax breaks people who own private lear jets. They will slap ordinary air fees everyith higher time they fly. That is really of seen. Thank you. Host on the farm legislation, we learned yesterday that they were unable to reach a deal on the fiveyear farmville, which includes stamps. There is a big difference between the house and the Senate Negotiators on how much savings they want to get, how much cuts they want to make to the food stamp program. It seems that they will take this back up in january when they returned to keep negotiating on a larger farmville legislation. On aof the deal that larger farm bill legislation. Reformsof the deal that pensions for federal employees, the wall street journal says this deal includes 12 billion in pension changes. The proposed changes would on civilian3 employees hired. 30 in 2014. So this is for new employees. So this is what the budget chairman said to say about this and how the two sides came together on it. [video clip] question what we are asking for here, they are hardworking dedicated people that we respect, but it is only right and fair that if they do something more toward their pensions just like the hard working taxpayer pays for their pensions in the first place. I want to add some to do that. If we did not reach an agreement, we would be at sequestration levels very shortly and many of the same people would be facing furloughs, layoffs, and uncertainty. We have brought certainty back to all those people. Murphy andwas patty paul ryan talking about the new deal. Mark in philadelphia, the mccrea caller. What do you think . Caller i think it is the triumph of the military industrial complex. Some of the biggest drivers against sequestration is grumman and going and general dynamics. They are fighting people in the field over to take a pension increase, and executives at these big companies, general dynamics, sitting back in their offices are going to get their money back and they will get their big fat bonuses, you know. And then what will they say to our military personnel who are taking a pay cut . Thanks for your service. What a bunch of hypocrites. Thank you. Host kristen in alaska, independent color. Caller hello, good morning to you. I have a really good idea about how to solve a lot of problems in one budget deal. This is what you do. You have a lot of corporations that are leaving the states because of the tax burden. And you cant get mad at the corporations because, if you are a holder of stock in a corporation, it has to read evidence. So it has to make the wisest decisions. If it can get a better tax system in another country and, at the same time, save on labor, that is what you want to do. But heres a way to get them all to come back and still get the tax money. This is what you do. You take the Corporate Tax rate and put it at zero percent. This is not only going to bring a bunch of Companies Back that have moved overseas, but it will also give a great incentive to start up new corporations. And then, you take the Capital Gains tax and you raise it up to the income tax level so you will get that money back from your shareholders, right . On the Capital Gains. All the money that would have been taxed at of the corporation in the first phase. It will just come out of the dividends from his shareholders. And at the same time, you are starting new corporations. You are bringing old corporations back. This creates jobs. It stimulates economy. People make money. And you still get the tax revenues out of it. Host rand paul tweets this. We are talking about the budget deal that was struck and announced by the two principles hop on capitol hill, paul ryan and patty murray and they held a press conference last night. By the way, if youre interested in the details of this legislation, it has been posted on the Budget Committees website so you can go to house. Gov, senate. Gov, and you can get a summary as well as a text of what is in this legislation. Although in the gritty details forthcoming. The video, you can and you canspan. Org see how they were able to strike a deal and what exactly is in it. The wall street Journal Editorial Board weighs in on the agreement in their pages this morning. They say the question for republicans is what happens is this fails. It means more turmoil, more evidence that the gop cant govern and the risk of another Government Shutdown. By contrast, this deal pushes the budget debate past next november and lets republicans focus on obamacare and its many ills. Tim, the credit card. Caller tim, democratic caller. Caller i think they will just go for the twoyear deal. Host you think they should do it, tim. Caller i think theyre going to. Host do you think they should . Caller theyre just tired of the shutdowns and the fussing and findings. As a compromise, i think they are to go for. Host what do you think of the deficit reduction component . Not Social Security or medicare included in this. Caller well, they will probably deal with that later. Host and you think they should . Caller they will probably deal with that later when he gets serious. Host ok. Chris, springfield, missouri. Caller thank you very much. I ag