Tax debate under election spotlight

>>> we're expecting that paul ryan 's budget and the budget cuts, medicare reform, taxes, are going to be major issues tonight when the candidates who have been debating those very questions in separate stump speeches, now they get to do in person face-to-face. joining me now, pennsylvania senator pat toomey , served on last year's super committee to try to tackle the deficit and of course has been a budget hawk throughout your tenure in the house and now the senate. thank you very much.

>> thanks for having me.

>> great to have you here. what should paul ryan say when joe biden goes after him on how devastating, these are biden's words, devastating the budget cuts would on discretionary domestic spending if he sticks to the defense entitlement and tax postures that he's outlined?

>> well, a few things, andrea. one is the simple fact that over the ten-year budget window of the ryan budget , spending on average grows yfr year. it grows by 3% a year. so most americans --

>> not every category.

>> true. but most people think that a government that's at a record size as a percentage of compete, the government that has doubled in spending in the last ten years, and one that's going to continue to grow that somehow that's a draconian cut in spending i don't think people are going to buy it. the other important point that paul ryan 's going to want to make, we've got a serious fiscal problem on hour hands. some people in washington pretend not to notice that but trillion dollar deficits year in and year out, debt that has reached 100% of total economic output this is unsustainable. paul ryan put a plan on the table. you don't have to necessarily agree with every last element in there t. but acknowledge it is a thoughtful, thorough, comprehensive plan that gets our economy growing and puts on a path to balance. where's the president's plan? his plan is so unserious not a single democrat in either the house or the senate voted for it when it was on the for in.

>> why did mitt romney run away from the paul ryan budget plan?

>> mitt romney put paul ryan on the ticket. that's not running away from the plan.

>> but i mean -- he didn't embrace the ryan budget . it was too tough for him perhaps?

>> correct me if i'm wrong, my understanding governor romney has been complimentary of the ryan budget plan and recognizes that we need to make reforms so that the big entitlement programs will be there for the next generation we need to tighten the belt on discretion discretionary spending . i disagree.

>> mitt romney 's tax proposals, because he has said that he can cut taxes without blowing up the deficit, without being deficit neutral, and at the same time keep defense spending .

>> yeah.

>> increase the defense budget . how does that work?

>> governor romney said he can lower marginal tax rates and generate offsetting revenue so we don't increase the side of the deficit.

>> how do you generate that?

>> you reduce the number of write-offs and loopholes in some combinations.

>> which would you reduce? he's not been specific.

>> he's provided more specificity than the president and any candidate.

>> he's not specific about which deductions.

>> one of the things he's said is a mechanism that limits val i of all itemized deductions might be one way to go. that's a way that you take a whole basket of all of the itemized deductions .

>> 17,000.

>> maybe it's some other number. but andrea, this is very specific. he's called for a cross the board marginal rate reductions, specified amount, 20%, insisted no increase in taxes on the middle class , that's one of the parameters, he said we're going to offset all of it by reducing value of the deductions and he's specified one of the mechanisms that will allow him to do that. i think if you went further than that --

>> but he hasn't been specific which deductions.

>> when you say you're going to limit the value of all itemized deductions that's a specific plan. and it's one vetted. and you absolutely can achieve the numerical goals that he set out. i think he's taken the right approach. at end details get negotiated with congress.

>> i wanted to ask you about something that mitt romney said to "the des moines register " on abortion, an important issue to you. he said there is no legislation with regards to abortion that i'm familiar with that would become part of my agenda. what's your reaction to that?

>> well, i think in further clarified that and mentioned one of the things that he does intend to do, as president.

>> on his behalf, a day later said, governor romney would of course support legislation aim at providing greater protections for life and did say he would eliminate the mexico city language --

>> no he would reinstate it. let's be cleeshg the poar, the policy that spreents american tax dollars going overseas to pay for abortions. president obama changed that poli policy.

>> contraception for abortion. the point is, is he saying one thing to iowa and another thing in the clarification?

>> no, he's been very clear. in fact, technically, what he says is exactly right because the reinstation -- reinstatement of mexico city policy can happen been i executive order and doesn't require legislation. he was not aware of legislation that was necessary.

>> is pennsylvania now too much out of reach for paul -- for romney and paul ryan in there's a new poll, " philadelphia inquirer ," eight-point spread.

>> it's absolutely not. look what happened in to 10, less than two years ago i was elected statewide, tom corbett elected governor, republicans control the state house , senate senate, 52 out of 67 county governments, 12 out of the 18 house seats are held by republicans. you watch, mitt romney 's going to carry pennsylvania .

>> if mitt romney carries pennsylvania this is a landslide like you haven't seen.

>> we'll celebrate early tuesday november