Reagan Budget Director Rings Alarm on Spending

If the GOP really wants to tame the federal budget problems, they've got a tall task on their hands politically. Former Reagan Budget Director David Stockman paints an ugly picture, arguing that even after cutting everything you can cut, immediate tax increases are needed.

"We've drifted now for 30 years. Both parties, unfortunately, became free-lunch parties — the Republicans cutting taxes every time they had a chance, never doing anything about spending, and the Democrats digging in to defend everything that was there. As a result, we now have this massive deficit."

“Two years after the crisis on Wall Street, it has been announced that bonuses this year will be $144 billion, the highest in history. That's who's going to get this tax cut on the top, you know, 2 percent of the population. They don't need a tax cut. They don't deserve it. And, therefore, what we have to do is focus on Main Street, and that means getting our house in order fiscally, not tax cuts that we can't afford.”