CBS "Face the Nation" - Transcript

Interview

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BOB SCHIEFFER: And we're back now with Senator Chuck Schumer of New York, who joins us from New York. Well, Senator, I want to get-- I want to ask you about your reaction to some of the things that Rand Paul said. But the first thing I want to ask you about because this is what you're going to be dealing with and that is extending these Bush tax cuts. We keep hearing that the President might be willing-- he says there will be no permanent extension of the tax cuts for the upper-income people. But of course that makes you think, well, what about temporary? And-- and a lot of people are saying that's where the-- where the compromise is going to be. Would
you be willing to go along with temporarily extending the upper-income tax cuts if the Republicans would then go along with extending the tax cuts for the people in the lower brackets?

SENATOR CHARLES E. SCHUMER (D-New York): Well, I think there is a compromise in the making. Democrats had originally called for tax cuts for people below two hundred fifty thousand, Republicans for everybody. What if we moved it up to a million dollars? Everyone below a million dollars will get a tax cut but the millionaires and billionaires won't. And I say that they shouldn't get it for three reasons. First, they are the only group whose income has substantially gone up in the last decade. Middle-class incomes have declined. Second, they're not likely to spend it. They got plenty of money anyway. And it's not going to bump the economy, boost the economy. And third, we have a big deficit problem. We have a great jobs problem. Better to put the money into deficit reduction creating jobs than give it to the
millionaires and billionaires. I think that's a good compromise. Now I heard Senator McConnell talking about small business. But under his plan, people like Warren Buffet, Bill Gates, Rex Tillerson, the head of Exxon Mobil, would get the tax break. They are not small businesses. And the plan I've proposed would encompass virtually all small businesses.

BOB SCHIEFFER: So-- so you would not be in favor of a temporary extension of the upperincome tax cuts as-- as some Democrats are talking about that they might entertain that?

SENATOR CHARLES E. SCHUMER (overlapping): I've-- I--

BOB SCHIEFFER: Would-- would you?

SENATOR CHARLES E. SCHUMER: --I think it would be much, much better to raise the limit to a million dollars rather than give it to people who are multibillionaires, whose income has gone up dramatically over the last ten years. It's about the only group in America, the very-high income who's had a gain in income.

BOB SCHIEFFER: What do you think the chances are of actually getting this done in this special session?

SENATOR CHARLES E. SCHUMER: Well I think there's a good chance, Bob. The American people want us to do a tax cut. I really believe that the Republican Party will not hold hostage middle-class tax cuts, for tax cuts for millionaires and billionaires. When they talk about small business they have something that I think is reasonable and so let's move it up to a million and include virtually all small businesses. But I think once we do that, the public will be on our side and Republicans will come round. They don't want to go away saying they held up middle-class tax cuts to help, you know, the Warren Buffetts, the Bill Gates, the Rex Tillersons.

BOB SCHIEFFER: The President's deficit commission was out. We just talked to Rand Paul about it. What's your general impression of the recommendations? And-- and mind you, we should underline these are very preliminary--

SENATOR CHARLES E. SCHUMER: Right.

BOB SCHIEFFER: --recommendations that have come out from the co-chairman.

SENATOR CHARLES E. SCHUMER: Well, I'd say three things about it. First, I do salute the two chairmen for coming out with sort of a-- opening foray here. It's-- there are things there that I'd agree with. There are things there that I'd disagree with. The second point I'd make is this. I have learned through the years that when these commissions come out that are carefully balanced and they try to compromise, if individual senators and Congressmen say, well, I'm for that but I'm never for that, the whole thing falls apart. So I think it's not wise to comment on any specific provisions. Rand Paul just took about half their recommendations off the table. And third, and just a general guideline, nothing specific, the burdens of deficit reduction and we do
have to reduce the deficit-- should not fall disproportionately on the shoulders of the middle class. I think that should be a watch word for both parties for all people.

BOB SCHIEFFER: Well, I mean, do you without commenting specifically on various parts of it. Do you think that that what's this recommendation does? Does it put too much on the middle class?

SENATOR CHARLES E. SCHUMER: Well, we don't know enough of the details. That's why it's difficult to comment. I haven't seen tables that break out where the burdens fall. And so, I think again the wise thing to do here, if you want the commission to have a chance of accomplishing something is not say I'm for this, I'm not for that. But let's see what they finally come up with as
a specific proposal and let's take it from there and see if there can be an agreement so that we can reduce the deficit which is very important.

BOB SCHIEFFER: Well, long before this commission decided to look at it, people were talking about social security and what we can do-- what can we do about it. Everyone seems to think you're going to have to do something here down the line, if it's going to remain viable. Could you ever entertain raising the retirement age, means testing, all of the things that most people say the hard choices you're going to have to make in order to keep social security going?

SENATOR CHARLES E. SCHUMER: Well again, Bob, I just go back to what I said before. To talk about any one specific without looking at the whole package is not going to help us get anywhere. So I'm not going to make any forays. I've been a strong defender of social security my whole career. I believe in it. I'm certainly against privatizing it or reducing its scope
dramatically so that only a small number of people get it.

BOB SCHIEFFER: All right.

SENATOR CHARLES E. SCHUMER: But I'm not going to get into any specifics here.

BOB SCHIEFFER: Let me-- you know, as you look at-- and especially, the new Congress that's coming in. There's no question that the Democrats, it-- it's a more liberal group. And the Republicans are a more conservative group. Do you see any chance that there-- there-- there can be some coming together.

SENATOR CHARLES E. SCHUMER (overlapping): I do.

BOB SCHIEFFER: That people can actually get together and get something done and if so, where?

SENATOR CHARLES E. SCHUMER: Okay. Well first, let me give you a general analysis.

BOB SCHIEFFER: Okay.

SENATOR CHARLES E. SCHUMER: You know, I think the same-- there's this-- the same reason that allowed Democrats to get such sweeping majorities in 2008, and Republicans to take so many of those seats back in 2010, is the same. And that is the very important fact that middle-class incomes this decade are shrinking, for the first time since World War II. And they
were even shrinking before the recession. They're getting worse now. But from 2001 to 2007, median income went down. So the middle class is not content. And they are up for grabs--the party, the people, the leaders, that are able to focus like a laser on middle-class anxieties, both creating good jobs, and for those who have jobs stretching that paycheck will be the majority party. So this talk that some Democrats on the far left will huddle and say we won't do anything and do no compromises. And some Republicans on the far right will huddle and say we won't make any compromises. They'll lose if they do that. Now I think there are a number of areas where we can come together and benefit average families. I think we can on education. I think we can on immigration. I think we can on energy policy. Major policies that affect this country where there are grounds for compromise. And any leader, any party that just says we're going
to block everything as middle-class incomes are declining is going to lose in 2012.

BOB SCHIEFFER: What-- if you were going to give the President some advice--and I know senators don't like to say it in public what they tell presidents in private. But what would you say to the President about why Democrats did so poorly in this election. And how-- how do you dig
yourself out of this hole?

SENATOR CHARLES E. SCHUMER: Well, here's what I'd say. I'd say, look, the Congress the last two years have been historic. We've pass major pieces of legislation. Four pieces that will go down in history as one of the most significant Congresses we've had. But two of them, the TARP which was passed the previous Congress, but it gets attributed to us and the stimulus,
prevented bad things from happening. There are about ten million people, probably who are working now. Who would not have been-- had we not passed those laws. But they don't know who they are. And then, two, health care and financial reform will benefit the middle class, but in the future. So the average middle-class citizen with incomes declining, with unemployment high said, nothing is benefiting me now. My advice is very simple. And it would be the same to the President, to my colleagues in the Senate and House, to people of the other party--focus on the middle class like a laser. No one in the middle class expects us to snap our fingers and everything will get better in two months. But if they feel we're focusing on them and they feel that the American dream is alive, the American dream being the concept that you're likely to do better ten years from now than you're doing today and your kids will certainly do better than you do. If they once again, they're having doubts about that. Now if they once again feel that's alive and well, our President will do very well. And I think that's what he's going to do. He's going to surprise a lot of people with how strong he will be down the road, because I believe he will focus on the middle class like a laser.

BOB SCHIEFFER: All right, Senator Chuck Schumer of New York.

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