• With: Rep. Eric Cantor

    CANTOR: President Obama's the only one that doesn't get what he wants in this bill, which is a vote that he doesn't -- that will take him through the election so he doesn't have to talk about spending cuts and taxes again while in an election year. Again, since when is that the dictator of what we've got to do to get the fiscal health of this country right?

    VAN SUSTEREN: All right, suppose that the Boehner bill doesn't pass tomorrow. Suppose you can get the Republican members of Congress who've made these promises about the balanced budget amendment to vote with you and you can't peel off enough Democrats. What happens then?

    CANTOR: Well, I think that's, again, one of the three options here. You got default or you got...

    VAN SUSTEREN: Well, you're not going to...

    CANTOR: ... going up through August 2nd. You've got -- you've got our plan or you've got Harry Reid's plan. And if nothing else, the Harry Reid plan is sitting over there. Harry Reid does not have the votes right now for that plan, which is why it's so important that the House act, we go on offense and we say, Mr. President, we have compromised yet again because if you recall, I was one who said months earlier, we can't sustain two votes in the House. Let's go ahead and get all the cuts done now.

    And the president said, "No, we need to raise taxes instead." So that's when we came back off the position and said, Fine, let's do this incrementally. But we're going to insist that we not increase the credit limit without sufficient cuts to go along with it. We don't want to give you a blank check, Mr. President.

    VAN SUSTEREN: What does he say when you say things like this to him?

    CANTOR: He gets very agitated. And he's gotten very agitated with me on several occasions.

    VAN SUSTEREN: I don't think he's wild about you right. Maybe you guys are friends earlier and maybe friends later, but doesn't look right now that you're going to be playing golf together.

    CANTOR: I think it's -- we have a professional, cordial relationship. And again, I've been through this before with the president when we were discussing the stimulus bill. The president doesn't like people who differ with him on policy grounds. I saw that in the White House.

    We just come from different world views. You know, I'm a small businessperson, and I know that the prosperity in this country is connected to entrepreneurs that are willing to go out there and take risks. What's gone on in this administration I think reflects the president's view of the world, that government is in place to promulgate rules and regulations that somehow settle scores. And in the process, what he's done is he's taken away all incentive for entrepreneurs and small businesses to have that optimism again to go out and create jobs.

    We've got to be focused on that. So we got to stop the spending and the promotion of these policies that are wrecking the economy and start focusing on what most people want, which is to get back to work.

    VAN SUSTEREN: Is the "Gang of Six" bill just out of play? We spoke to Senator Mark Warner, and he talks about even his experience when he was governor of Virginia how they lowered the tax rates and got more revenue and his -- you know, it's a rather -- you know, another -- it's rather comprehensive and a whole 'nother bill. Is that out of place?

    CANTOR: Mark Warner -- Mark Warner raised taxes in Virginia, OK?

    VAN SUSTEREN: He says he lowered them.

    CANTOR: No, he -- I mean, I think the record will show -- as you know, I'm from Virginia.

    VAN SUSTEREN: No, I know you are.

    CANTOR: Mark Warner...

    VAN SUSTEREN: Still are!

    CANTOR: Mark Warner raised taxes in Virginia. And the "Gang of Six" bill, if you look at the revenue -- additional revenues that it calls for, as well as the rates that it calls for on the individual level, there's no question that taxes will go up in that bill.

    And I think where the taxes go up are the fact that you're going to get rid a lot of the mortgage interest deductions, charitable deductions. But most importantly, I don't think you can sustain the difference between the capital gains rate and ordinary income. And so you'll see capital gains rates go way back up, and I believe that the capital gains rate lower than that which is ordinary is one of the most generative (ph) policies that we can have. You want to put incentives in place so that people, small business people, can put their capital at risk. That's what capital gains taxes are about, is you want to lower them.

    You know, other countries now that are our competitors have much lower if no capital gains taxes. And we don't want to be disadvantaged. Again, that's the engine of America, the ability for entrepreneurs to invest and to create value and jobs. We want to put incentives in place. We don't want to raise those taxes. I believe the "gang of six" plan will raise capital gains rates.

    VAN SUSTEREN: Congressman, thank you. And as you know, we'll be watching.

    CANTOR: Thank you, Greta.

    VAN SUSTEREN: Thank you, sir.