MSNBC Interview - Transcript

Interview

MSNBC Interview - Transcript

MSNBC Interview With Senator John Thune

Subject: A Divestment Timetable

Interviewer: Carlos Watson

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MR. WATSON: Senator Thune, good to see you, sir.

SEN. THUNE: Good morning, Carlos.

MR. WATSON: Senator Thune, so tell me about this bill you've introduced that, as I understand it, would ask for an exit strategy on a number of the investments the government has made in car companies, banks and other companies.

SEN. THUNE: Well, Carlos, we think that the federal government does need an exit plan. Secretary Geithner, when he testified in front of the Senate Banking Committee a couple of weeks ago, indicated that there isn't a plan at this point. And I think what happens is, when the government intervenes and starts taking ownership interest in some of these companies, you run into all kinds of inherent conflicts. And we're starting to see that.

And there's no end to this thing. You know, when the government takes an ownership interest like that, sometimes it goes on indefinitely. I think by putting a deadline out there, it gives us now something to shoot toward. And it creates an exit plan, an exit strategy if you will, for the federal government to get out owning private companies and out of the day-to-day decision making, which we think is detrimental in the long run to our economy and to job creation.

And so my bill does that. It does create some flexibility for the Treasury. It doesn't do this overnight. And it also requires that any revenues that come back in, funds that are paid back in from the TARP program go to debt reduction, which we think is a very, very big problem that's going to plague the economy going forward, and we need to get our arms around it.

MR. WATSON: Senator Thune, tell me about that time frame. How long -- how quickly, rather, would you push the federal government, for example, to sell its interest in General Motors or to sell its interest in some of the hundreds of banks that it now owns a piece of in one way or another?

SEN. THUNE: We set a deadline of July 1 of 2010, so essentially a little over a year from now. But we also, as I said before, give the Treasury the latitude to exercise some discretion. If they want to extend that by six months or even up to a year, they can do that if they think some of these assets are going to appreciate.

But there was just a survey that came out yesterday that said that 80 percent of Americans want to see the federal government sell its interest or divest itself and wind down its involvement in some of these companies. And if ask the question of do they want, you know -- in a year -- as a year is time enough -- you've still got 64 percent of Americans who think that we ought to do it by the end of the year.

But the hard deadline would be July 1 of 2011. We do start the first deadline July 1 of 2010. And of course, obviously, after that the Congress could, if they choose to, extend that authority. But we think that the -- we ought to have the Treasury shooting at something in terms of getting the government out of the ownership of private companies. And my legislation would do that.

MR. WATSON: Senator Thune, quick question. You just talked for a moment about the deficit, how large it is. And clearly one of the opportunities, you're saying, is to sell assets. But one of the other conversations we almost certainly are going to have was not only cutting spending, but will be in some cases tax increases. Are there any tax increases that you would support, any meaningful tax increases that would cut hundreds of billions of dollars off of both the deficit and the debt?

SEN. THUNE: I think the key is to get spending under control, Carlos, in particular in the entitlement programs. As you said, we're running -- we're going to run a $1.8 trillion deficit this year, which is 13 percent of gross domestic product. This is territory we've never been in. And you cannot sustain that over time. And I think what the government needs is the government needs some limits. We're now talking about -- the government is -- about taking over the health care industry. And I think --

MR. WATSON: But, Senator, let me push you for just a minute because I'm with you on that, on the cutting of spending and the need to do that in a variety of areas. But what about tax increases? What if we do as good a job as we can in terms of cutting the spending, eliminating programs, et cetera, even selling some of these assets as we talked about, but there are a need for tax increases? Are there any tax increases you, MBA -- you worked in the Small Business Administration; I know you come from a family business tradition -- are there any tax increases that you think are smart that you would support in the near term?

SEN. THUNE: I just think any kind of a tax increase right now, Carlos, would be very detrimental to the economy at a time when we're trying to recover. And again, I think it comes back to the overall size of government. We continue to grow the size of government. We're at about, you know, if you -- historically have been 18 (percent) to 20 percent of GDP; that is growing now. The public debt is growing. It's going to be at the 10-year period about 80 percent of GDP. I think it comes down to taking on spending. And until we do that, we're never going to be serious here about the issue of fiscal responsibility.

I think tax increases right now, honestly, would be very detrimental to the economy. I think it would be very detrimental to small businesses and entrepreneurs who really can lead us back on the pathway to recovery. And what they need right now is not more taxes, but probably in some ways lessening the burden that they're dealing with so that they can go out and create jobs.

MR. WATSON: Senator Thune, we've got to go. But rumor has it that you're a good basketball player. Have you been invited to the White House yet to try your skills against the left-hander in charge?

SEN. THUNE: I'm still waiting for that invitation, Carlos. But I hear he's quite good. So we'll see.

MR. WATSON: He is. Having played against him before, he is.

Thank you so much for joining us.

SEN. THUNE: Good to be with you. Thank you, sir.

END.

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