Obama vs. Cut, Cap and Balance

This is a rush transcript from "The Five," July 18, 2011. This copy may not be in its final form and may be updated.

ANDREA TANTAROS, CO-HOST: Three words from President Obama today on the debt talks in Washington: "We're making progress."

Really? Then why were so many proposals floating around? Is there still no sign of a deal in sight? Or maybe there is.

One plan called "cut, cap and balance" will be voted on tomorrow in the House of Representatives. But Obama is already saying that he'll veto it. He's offered no plan of his own to stop the bleeding in Washington and our national debt is completely out of control.

So, now, what? Well, let's start with what actually "cut, cap and balance" is. "Cut, cap and balance" is substantial spending cuts, enforceable spending cuts and a balanced budget amendment.

And I want to go around the table and I want to see your thoughts on what you think is actually going to happen tomorrow. Because they're going to bring it to a vote in the House. There's talk it will pass the House. It may stall in the Senate. Obama is saying I'm going to veto it.

Bob, likelihood of the "cut, cap and balance" actually making it to law?

BOB BECKEL, CO-HOST: About as likely as my ever voting for a Republican.

The -- look, here's what's going on here. They are going to have this vote tomorrow. It may pass the House. There's no way it passes the Senate. It requires two-thirds vote. It's a constitutional amendment.

They've tried this before. It's just so that they can tell the Tea Party people out there, "Look, we are doing what ask us to do, balance it."

TANTAROS: Is that how we talk?

BECKEL: Sort of. But if I can just tell you, there is a deal in the works, in fact, it will be done -- it has to be done by Friday. August 2nd deadline is wrong.

TANTAROS: What does it look like?

BECKEL: What it looks like is Mitch McConnell with a Reid plan. It's $1.5 trillion in cuts. No taxes. It is Obama submits not one, not three, but twice, to go up to $2 trillion.

TANTAROS: Did I just hear no taxes?

BECKEL: Well, at least the first round.

TANTAROS: No taxes?

BECKEL: It's a sell off. But that's OK. You have to do it.

TANTAROS: That's the best thing that happens to Obama. He should send the GOP --


BECKEL: Somebody has to be serious.

ERIC BOLLING, CO-HOST: No taxes. As Bob points out, what did you say, $1.5 trillion? What's that going to do? I mean, really, what's I mean, really -- that's not even going to make it through the end of this term. They really, really need to fix the problem. That's not going to fix the problem.

BECKEL: You didn't let me finish.

BOLLING: Can I just point this out? Can I point something out?

Mr. Obama spent $3.9 trillion in two-and-a-half years. OK? He tacked that on the national debt. If you extrapolate two-term presidency, you're talking $13 trillion new dollars in debt on top of the $10 that he started with. That would make Greece look like Goldman Sachs.

BECKEL: You know, that makes you sound like you know how the Greek puts our accounting together.

DANA PERINO, CO-HOST: Watch the insults on the Greeks.

BECKEL: You do diners really well, don't get me wrong.

TANTAROS: Just not debt. Dana, go ahead.

PERINO: Let me give you an alternate view which is the other reason there are no new taxes in this deal that Obama will sign is because the Republicans held strong.


PERINO: Even though -- I know that Bob you want to make it sound like Republicans are all divided. President Obama started of this negotiation with taxes on millionaires and billionaires. And now, he's is going to pass a deal and sign a deal that has no new taxes.

GREG GUTFELD, CO-HOST: Can I say something? This is kind of the sad thing when you say you are winning when you probably are losing.

The real debate over the debt has been lost. The real debate should be cutting taxes versus raising taxes. Now, it's raising taxes versus no taxes. So in a sense, the Republicans and conservatives and libertarians have lost the debate.

BECKEL: You have lost the debate. I'd stick to comedy.

GUTFELD: What does that mean?

BECKEL: No, I think you are one of funniest people I know. Wait, can I -- just wait a second. The new CBS poll shows one thing you need to know, 71 percent of the American people think the Republicans are screwing up in the deficit. Obama gets twice the favorability.

Why do you think that is, is because he is winning the battle.

PERINO: No, he is not!

BECKEL: What do you call that? If it's not winning the battle, what is?

TANTAROS: All right. Dana, does that number really make you nervous?

PERINO: No, it doesn't because I'm going to tell you something, when President Obama made the courageous decision to have the SEAL team go in and kill-when President Obama had them killed Usama bin Laden, I was on TV for the next week with people asking me -- so does this mean he's going to get re-elected? No, because while it was courageous and while it was good, this election is about jobs and growth and a choice as to do we grow or do we decline?

This is going to last about eight minutes.

BECKEL: OK. I agree with that. But the other piece is this mandates, the deal mandates that 12 members of Congress get together and come up by the end of the year with a plan that has to be voted on up or down, no amendments. Why


BECKEL: I'm trying to give you facts. I'm not sitting here giving you ideological--I'm trying to give you something you don't quite understand up here in New York.

BOLLING: Listen to me. The stock market turned down. The real estate market turned down. Gold is $1,602 an ounce today for one reason -- record high -- because people out there, traders out there, the world realizes that whatever plan they have in store, $1.5 trillion, ain't going to cut it.

BECKEL: It's all Barack Obama's fault. Price of toilet paper went up. That's Obama's fault. And what else? Your car is not working well? That's Barack. You guys get off of it?

TANTAROS: Bob, you can thank the Republicans for not turning this country into Greece.

BECKEL: Thank God. Well, they still don't do -- no, no no.

TANTAROS: Obama says we're not. Lindsey Graham says we are.

BECKEL: That is one of the most ridiculous arguments. Greece is tied to the euro. We have our own currency. We have the currency of standard around the world.

TANTAROS: Yes. But we can't keep printing money. Eventually, it's going to devalue our currency.

BECKEL: You can print all the money you want to print.

PERINO: No, you cannot.

BECKEL: You can print another $1 trillion.

BOLLING: Or you cannot.


BOLLING: If you want to pay six bucks for a gallon of gasoline, then print away.

PERINO: Let me just say politically that I think two of the smartest people in Washington have been the ones who have taken a total duck on this issue, and that has been Senator Reid and Nancy Pelosi. They are not on TV or out talking about it.

TANTAROS: And the GOP candidates. Many of them have taken a duck.


BECKEL: Reid put his name out with McDonald -- McConnell rather. I should call him old McDonald.


TANTAROS: I don't think that's so smart, though-that a lot of GOP candidates took a duck. All right, we'll talk about this tomorrow more.

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