Why We Can't 'Spend Our Way Out of Recession'

" So much while the debate over tar and an economic stimulus plan. Is getting tougher and rougher by the day our next guest argues. That we cannot spend our way out of this recession joining us now live from Nashville Tennessee is Republican representative Marsha Blackburn. She also sits on the energy and commerce committee welcome representative thanks for coming on fox business. Get to be we humans linking it interestingly enough right before we came to you we have this note from fort saint. -- don't look at us we're not touching the market's suddenly I think people of woken up and realize that it's not a good thing. Just sort of have that on your -- Direct -- reputation to tap the TARP but at what I think this is heading because if you say we can't spend our way out of the problem what's the answer."

" Well you're exactly right and I college the -- trying to. And I think for many of the banks and businesses that are trying to access the funds. You're exactly right that's funny this turning out to be about it when you're right we cannot spend our way out of -- on the American people know that. I at -- I spoke to a group of young business leaders that are your 25 to forty year old age group. They're going. What ever happened to trying to do some tax reductions. Some looking at corporate taxes to licking it. Doing away with cap gains taxes. Marginal rates things that affect small business an entrepreneur hours. And the American people are looking at all of these zeroes lined up on a calculator and going wait a minute. You try planned -- which is the Paulson plan and that didn't work. Everyone knows it didn't work in -- You have this second try -- of funds that a second 350 billion. Plus the Obama plane and which is another 850 billion in stimulus let me -- you been -- a lot of money let me tell them that plan of the 825. Billion involves I think about 200 and change billion. That would be direct tax cuts for businesses involving things like write offs and write downs for capital expenditures. There is some relief for businesses who spend money and grow with in that plan. That's right but that is going to be a long time coming. And there are things that can be done right name out there -- if you a couple of examples. Number wine what about that doing away with capital gains taxes for a couple of years number kid. I've not beaten taking out federal withholding for three months in congressman -- out of Texas has that piece of legislation. You can get -- savings there. I have a deal number three which would be to allow every one in the country to deduct lying find me on their 1040 form. That is state and local sales taxes that they pay -- in Tennessee don't have a state income tax thank goodness. So we deduct our sales tax some states have state income taxes we just -- Friday on at 1040 form. So why don't we allow everybody in the country. All 45 million who itemize to -- but the line Friday and I can be. And make it retroactive to January 1 -- You know what that is an immediate stimulus stimulus that is money in the pocket is going to get -- write me up people are beginning to feel healthier income tax. IRS can do that with amended -- strike instructions. Doesn't take a lot to implement that and it would be in Tennessee you know the average family. Cuts their tanks built by 650. Dollars that's what right."

" Candidate -- I should pay -- tonight I don't like paying taxes either but even The Wall Street Journal Op Ed page was saying that any Republican who claims that they could cut taxes. It isn't going to make that happen because. Were already down so much on the state level on the national level which -- paid people we've got to make this government run. Needless to say it's not run wage should be run properly and more streamlined but. At what what do you look at this and say. Yes of course we would love to chop off capital gains taxes were quote a couple of years. But how can you cut taxes but I'm not -- raising taxes at a time like this sudden that would be slightly disastrous but how can you do that. In an atmosphere."

" On the other yeah. And and that's what you it's like the old country song bring -- whole stock and again. And -- that is we're America is frightening and what we have to do is a look at what we're going to do to curb what the federal government stands. Well I guess every uneasily Atlanta except the federal government. And I've got three bills that were filed last week I found these things every single year lance. One calls for a one for 1% across the board reduction the next -- to -- versus the board reduction and for the core rate just 51 thought process of -- It has ended padded -- day war. -- that governments have been doing this that's how they balance their budget federal government has got to do this kind of saying. We're not going to spend our way out that it we've gotta read this what we stand we've got to be wise we've got to be good -- who went got to think about lack doesn't know how it goes representative thank you so much for joining us thank you representative Marsha Blackburn of Tennessee."