ABC - Dealing with the Ceiling - CEOs Ducking for Cover
Wednesday, 29 Jul 11 | 02:15 PM ET
Drew Greenblatt, Marlin Steel Wire president and John Allison, former BB&T chairman & CEO, discuss the uncertainty in Washington right now and the trend of companies hoarding cash.
Debt CEO Cop-Out
Wednesday, July 29, 2011
ABC - Diane Sawyer: >> In every state, everyday Americans have been sounding off on the debt
crisis and they are fed-up with the wrangling in Congress.
So today, we challenged some of them from every end of the political
spectrum to get together in one room and show Washington how to get things done.
ABC's John Carl is back.
ABC - John Carl: >> So here we are. We are going to try to see
if the five of you, in just an hours' time can come up with a solution that
somehow Washington seems utterly incapable of coming up with.
ABC: >> And with that, we got to work. Five Americans; views ranging from
Tea Party to liberal Democrat. Could they agree on cuts tallying up to two trillion
dollars? That would be enough for Democrats and Republicans to
reach a deal and break the stalemate.
ABC - John Carl: >> One of the proposals out there
is to eliminate the home mortgage deduction. It would be a trillion dollars.
:Leslie Echols, Stay-at-home mom >> I think it's not a good idea
ABC - John Carl: >> Not a good idea?
Leslie Echols, Stay-at-home mom >> For many Americans, that's the only
deduction that they have.
Tim McBride, College Student >> I think we shouldn't be doing anything to disincentivize people from
buying houses right now.
ABC: >> No on that, so how about raising taxes on the wealthy?
ABC - John Carl: >> Eliminate the Bush tax cuts on the wealthy,
on people making over $250,000. You like that idea?
Tim McBride, College Student >> Yes.
Leslie Echols, Stay-at-home mom >> Yes.
DREW GREENBLATT, Small Business Owner >> The problem with this is
you're hitting small businesses, like me.
Barbara Schauer, DC Tea Party Member >> It's not just small business, it's two professional
people earning a dual income.
Tim McBride, College Student >> It's not going to hurt the economy to
DREW GREENBLATT, Small Business Owner >> This will increase unemployment.
This will stop investments.
Tim McBride, College Student >> That's not true.
Megan Nabaviania, HR Manager >> The bottom line is, we are five people
and if five people can't make one
agreement, then that tells you a lot about what's actually
going on in the House right now.
ABC: >> They kept at it and with the clock ticking, the
compromises started coming. They agreed on gradually raising the Social
Security Retirement Age to 68.
Leslie Echols, Stay-at-home mom >> I'd agree to that.
ABC - John Carl: >> Ok, so we have 70 billion dollars, Social Security
Retirement Age. So we have one.
ABC: >> And on taxes, not raising rates, but closing loopholes.
DREW GREENBLATT, Small Business Owner >> I love it.
Tim McBride, College Student >> I'm actually fine with lowering the
actual percentage, but also closing the loopholes if that leads to an increase
ABC: >> Next, they cut defense, government salaries and reduced
our stockpile of nuclear weapons.
Megan Nabaviania, HR Manager >> There's no reason to have that much
nuclear weapons, we're not going to use it.
DREW GREENBLATT, Small Business Owner >> If we have plenty left over
after we cut 79 billion, plenty of nukes left over, let's cut it.
ABC: >> They agreed to end ethanol subsidies, reduce subsidies,
raise the retirement age, reduce annual increases for Social Security.
By the time the hour was up, 2.5 trillion dollars in deficit reduction.
Not bad for an hours' work.