BUCHANAN: Hold it, Lanny, because this is an important point. He was offered $3 in spending cuts for every dollar in taxes increased. He got the reverse.
DAVIS: The answer is true.
Secondly, John Kennedy, just was shown on television because Sean liked the speech. And you said, a reduction from 90 to 71 percent. Bill Clinton increased taxes from 35 to 39 percent, started with a $300 billion deficit, ended with a trillion dollar surplus.
BUCHANAN: All right. Let me ask you --
DAVIS: And that bill, all of you and I think you on television Pat predicted there would be a recession by that increase in taxes, 23 million jobs later, there was no recession.
BUCHANAN: All right. Lanny, if what you say is true, Lanny, that the Clinton tax cuts did it, why doesn't Barack Obama say, let's have back all of the Clinton tax hikes?
DAVIS: Tax increases.
BUCHANAN: Well, yes, you're right. Let's have back all of the Clinton tax increases on everybody and we'll really have a boom because he knows in his heart what he knew in 2010. You raise taxes on everybody and a weak economy like we've got, and you will send it into the dumpster. And that's what he's threatening to do.
DAVIS: That's the reason. No, that's a fair point. And that's the reason it's a weak economy. But Bill Clinton when he raised taxes from 35 and 39 percent and ended up with a trillion dollar surplus, conservatives like yourself love the fact that we had a surplus rather than under the last two administrations --
BUCHANAN: All right. Let me ask you a question --
DAVIS: -- both Bush and President Obama, we now have a $16 trillion national debt.
BUCHANAN: One question, Lanny. One question. Under Bill Clinton, they cut defense spending from Reagan six percent of GDP to three percent. Cut it in half as a percentage of the economy. That's why he got a balanced budget. He hatched defense.
HANNITY: All right. We've got to take a break. Guys, stay right there. We will
DAVIS: Twenty three million new jobs too.
HANNITY: -- and by the way, don't forget, Bill Clinton had Newt Gingrich and the Congress and -- Domenici (ph) and they were a big part of it. And actually, Clinton sat down with Newt Gingrich. I don't see that happening here.
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