ITS HANDLING OF ANOTHER ALLEGED SAFETY INCIDENT. WELL, TODAY, PRESIDENT BIDEN IS IN PHILADELPHIA UNVEILING HIS NEW BUDGET PLAN. AND THE PRESIDENT SPOKE A LITTLE WHILE GO ABOUT HOW HIS ADMINISTRATION INTENDS TO DO THE FOLLOWING. LOWER COSTS FOR FAMILIES, PROTECT AND STRENGTHEN SOCIAL SECURITY AND MEDICARE, INVEST IN THE COUNTRY AND REDUCE THE DEFICIT. >> TAKE A LISTEN. THE THINGS I'M PROPOSING, I DON'T LIFT A BURDEN OFF OF FAMILIES IN AMERICA. >> IT'S ALL GOING TO GENERATE ECONOMIC GROWTH. AND THAT'S NOT ALL TO SUPPORT WORKING PARENTS. MY BUDGET EXPANDS ACCESS TO AFFORDABLE CHILDCARE FOR MILLIONS OF FAMILIES, AND IT'S GOING TO INVEST IN PAID FAMILY AND MEDICAL, WHICH ALL OF YOU FOUGHT LIKE FOR. SO THAT THE U.S. IS NO LONGER THE ONLY MAJOR ECONOMY IN THE WORLD THAT DOESN'T HAVE PAID LEAVE. SO THAT'S THE PRESIDENT OUTLINING HIS BUDGET AND HIS PRIORITIES. LET'S BRING IN ABC NEWS, ELIZABETH SCHULZE. SO, ELIZABETH , YOU'RE COVERING THIS PRESIDENT , THIS BUDGET, OBVIOUSLY NOT JUST A BUNCH OF NUMBERS, BUT REALLY A STATEMENT OF POLITICAL PRINCIPLES AND A PLATFORM FOR RUNNING AGAIN, WHICH HE SAYS HE'S GOING TO DO. >> WHAT'S YOUR TAKE AWAY FROM IT? YOU KNOW, TERRY , THE PRESIDENT SAID THIS IS A STATEMENT OF HIS VALUES, OF THE PRIORITIES THAT HE WANTS TO GET THROUGH CONGRESS, AS UNLIKELY AS THAT MIGHT BE . THIS WAS A SIX POINT NINE TRILLION DOLLAR WISH LIST FOCUSING ON PRIORITIES FROM CLIMATE TO HEALTH CARE, EDUCATION, HOUSING, REALLY ACROSS THE BOARD. THE PRESIDENT TRYING TO MAKE THE CASE FOR HOW TRILLIONS MORE IN GOVERNMENT SPENDING CAN HELP FAMILIES ACROSS AMERICA. IN THE FORUM FOR THIS SPEECH IS NOTABLE, HE TRAVELED TO PHILADELPHIA TO UNVEIL THIS BUDGET. TYPICALLY, THIS IS MORE OF A NONEVENT AT THE WHITE HOUSE, BUT INSTEAD THE PRESIDENT WANTED TO MAKE THE CASE, THE WHITE HOUSE SAYS, TO PEOPLE WHO WOULD DIRECTLY BENEFIT FROM POLICIES LIKE INCREASING THE CHILD TAX CREDIT PAID LEAVE. YOU HEARD HIM SAY IT. THEY'RE ENSURING THE SOLVENCY OF MEDICARE. AND THEN THERE ARE, OF COURSE, BROADER PROPOSALS THAT WE WOULD TYPICALLY SEE INCREASING DEFENSE SPENDING, MORE AID TOWARD UKRAINE, FOR EXAMPLE. THE PRESIDENT ALSO TALKING ABOUT RESTORING FAITH IN AMERICAN DEMOCRACY. THAT WAS A POLICY THAT HE LAID OUT. AND THEN YOU SEE THOSE INITIATIVES LIKE FREE PRESCHOOL ,FREE COMMUNITY COLLEGE, DOUBLING DOWN ON SOME OF THESE SPENDING PROGRAMS THAT ALREADY HE HAD A HARD TIME GETTING THROUGH A DEMOCRATIC CONTROLLED CONGRESS, MUCH LESS GETTING THAT THROUGH A REPUBLICAN CONTROLLED HOUSE. >> NOW, GUYS, SO BY ADMINISTRATION ALSO SAYING THAT THIS PLAN ACTUALLY CUTS THE DEFICIT BY AS MUCH AS THREE TRILLION DOLLARS. IT'S GOT A LOT OF NEW SPENDING. SO JUST HOW DOES THE MATH WORK? WHERE'S THIS MONEY GOING TO COME FROM? WELL, LOOK, IT ALL COMES DOWN TO TAXES. THAT'S HOW THE GOVERNMENT MAKES MONEY. AND THE KEY OTHER PART OF THIS PROPOSAL, IN ADDITION TO THE SPENDING, IS WHERE THE PRESIDENT WANTS TO TRY TO RAISE REVENUE AND HE IS PROPOSING INCREASING TAXES ON THE WEALTHIEST AMERICANS AND ON CORPORATIONS AT 25%. MINIMUM TAX ON BILLIONAIRES. HE WANTS TO REVERSE SOME OF THE TWENTY SEVENTEEN TRUMP TAX CUTS ON CORPORATIONS. SO INCREASING THE CORPORATE TAX RATE UP TO TWENTY SEVEN . 28% FROM 21%. ALSO, THE TAX ON STOCK BUYBACKS. SO REALLY WHAT THE PRESIDENT IS TRYING TO DO IS DOUBLE DOWN ON SOME OF THESE POLICIES THAT HE SAYS SHOW THAT AMERICANS ARE NOT PAYING THEIR FAIR SHARE. HE SAYS THIS IS THE PLACE WHERE WE CAN HELP REDUCE THE DEFICIT, TRYING TO SHOW FISCAL RESPONSIBILITY, IF YOU COULD CALL IT THAT, TRYING TO SHOW THAT THERE IS AN EFFORT TO MAKE SURE THAT SOME OF THESE PROGRAMS ARE PAID FOR. AND THE WAY THAT HE WANTS TO DO THAT IS BY TAXING THE 1%, BY TAXING CORPORATIONS. THAT IS GOING TO BE A VERY TOUGH SELL, THOUGH, IN CONGRESS AGAIN. ALREADY WE'RE HEARING PUSHBACK ON THAT. ANY NOTION OF RAISING TAXES, ANY NOTION OF REVERSING SOME OF THOSE TRUMP TAX CUTS IS GOING TO MEET A LOT OF RESISTANCE. >> AND ELIZABETH, I WANT TO I WANT YOU TO PUT ON OUR CHIEF ECONOMICS REPORTER HAT FOR US INFLATION, A TOP CONCERN FOR A LOT OF AMERICANS , OBVIOUSLY, THESE PAST YEARS, THIS BUDGET LOT, SO MUCH NEW SPENDING. THE GENERAL IDEA THAT MUCH FEDERAL SPENDING WILL PUMP MORE ENERGY INTO THE ECONOMY. >> COULD IT FUEL MORE INFLATION? WELL, OF COURSE, THE CASE, TERRY , AT THE WHITE HOUSE MAKES IS THAT THESE ARE PROGRAMS THAT WILL HELP WORKING FAMILIES, THAT WILL ULTIMATELY HELP LOWER COSTS, FOCUSING ON , FOR EXAMPLE, LOWER DRUG PRICES, LOWER CHILD CARE COSTS. AND THAT THAT'S PART OF AN EFFORT TO OVERALL BRING DOWN THE PRICES THAT AMERICANS PAY. BUT THERE HAVE BEEN A LOT OF CONCERNS THAT THE STIMULUS THAT WAS PASSED IN THE WAKE OF THE PANDEMIC, THAT AMERICAN RESCUE PACKAGE PLAN THAT WENT INTO EFFECT, THAT THAT REALLY POURED FUEL ON TO THE INFLATION PROBLEM THAT THERE WAS THIS ALL OF THIS MONEY THAT WAS STIMULATING THE ECONOMY AND QUESTIONS ABOUT IF THIS IS THE TIME TO HAVE MORE STIMULUS, YOU KNOW, REPUBLICANS ARE GOING TO MAKE THAT CASE AND THEY ALREADY ARE. THEY'RE SAYING WE ALREADY HAVE TOO MUCH GOVERNMENT SPENDING. THEY'RE RAISING CONCERNS ABOUT THE NATIONAL DEBT. THE PRESIDENT IS VERY AWARE OF THIS, WHICH IS WHY YOU'VE SEEN THIS EFFORT TO FOCUS ON THE DEFICIT REDUCTION IN THIS PACKAGE, TOO. BUT THERE WILL BE RESISTANCE TO SOME OF THESE NEW PROGRAMS. HE HAD A HARD TIME. IN FACT, THE CHILD TAX CREDIT IS AN EXAMPLE THAT COULD NOT GET EXTENDED PARTIALLY BECAUSE THESE INFLATION CONCERNS, IT'S POSSIBLE THAT THAT COULD MEET RESISTANCE AGAIN, JUST BECAUSE THE FACT IS WE ARE STILL SEEING THOSE RECORD HIGH PRICES. WE ARE STILL SEEING SUCH HIGH INFLATION ACROSS THE ECONOMY RIGHT NOW. SO WE'VE BEEN TALKING ABOUT THIS OP ED THE PRESIDENT WROTE FOR THE NEW YORK TIMES THAT EXPLAINS HIS PLAN TO KEEP MEDICARE SOLVENT THROUGH TWENTY FIFTY. PUT IT IN PERSPECTIVE. HOW IS THAT GOING TO WORK? I MEAN, WE TALKED ABOUT TAXES, AMONG OTHER THINGS, AND TAXES ARE A BIG PART OF THE PRESIDENT IN THAT OP ED SAID THAT IT'S A LOT OF THIS MONEY THAT WILL MAKE MEDICARE SOLVENT OVER THE COURSE OF THE NEXT TWENTY FIVE YEARS COMES DOWN TO THE WEALTHIEST AMERICANS PAYING MORE IN TAXES SO THAT 25% MINIMUM TAX ON BILLIONAIRES IS AN EXAMPLE OF THAT INCREASING CORPORATE TAXES IS ANOTHER ONE . BUT THERE'S ALSO THIS KIND OF UNDERLYING PROPOSAL FROM THE PRESIDENT TO TRY MEDICARE TO NEGOTIATE DRUG PRICES. AND THIS SOUNDS COMPLICATED. WHAT IT MEANS IS THAT IT WOULD ALLOW THE GOVERNMENT PROGRAM TO BE ABLE TO PAY LESS FOR SOME OF THOSE PRESCRIPTIONS AND THAT THE PRESIDENT SAYS, COULD SAVE MONEY. THEY COULD REINVEST THAT TOWARD MAKING MEDICARE SOLVENT. THE UNDERLYING KIND OF REALITY HERE IS BOTH REPUBLICANS AND DEMOCRATS ACKNOWLEDGE THAT THE DEBT IS AT A HISTORICALLY HIGH RATE. IT HAS GONE UP IN THE WAKE OF ALL OF THIS SPENDING SINCE THE PANDEMIC ENACTED UNDER BOTH FORMER PRESIDENT TRUMP AND UNDER PRESIDENT BIDEN. THERE'S AN AWARENESS THAT SOMETHING NEEDS TO BE DONE TO TRY TO GET CLOSER TOWARD BALANCING THE BUDGET. BUT WE ARE VERY FAR FROM THAT. EVEN WITH DEFICIT REDUCTION, EVEN BY REINING IN SPENDING A LITTLE BIT. SO THERE'S AN EFFORT TO TRY TO SAY HERE'S HOW WE CAN DO THAT AT LEAST A LITTLE BIT WITH THAT OVERALL PROBLEM OF THE DEBT CEILING KIND OF HANGING IN THE BALANCE. AND THAT'S A LOT MORE ABOUT POLITICS AND WHICH SIDE IS GOING TO GIVE AND WHICH SIDE IS NOT. AND SO FAR , WE ARE SEEING THE PRESIDENT TRY TO MAKE HIS CASE. HE SAYS NOW IT'S ON REPUBLICANS TO MAKE THEIR CASE FOR WHERE THEY COULD MEET IN THE MIDDLE. ALL RIGHT. AS THE TRUCK GOES BY , LESLIE, ONE MORE QUESTION. ONE MORE QUESTION. YOU KNOW, BALANCING THE BUDGET, THE LAST TIME IT WAS IT HAPPENED WAS UNDER BILL CLINTON AND WAS MORE BECAUSE OF THE ECONOMIC GROWTH AT THAT TIME THAN ANYTHING ELSE. TAX REVENUES WENT UP BECAUSE THE ECONOMY WENT UP AND SO THE QUESTION OF ECONOMIC GROWTH JOBS REPORT TOMORROW, YOU KNOW, THE FED TRYING TO BALANCE THE BRINGDOWN INFLATION WITH NOT TANKING THE ECONOMY. >> WHAT ARE YOU EXPECTING FROM THAT? ALL IMPORTANT JOBS REPORT? THIS IS SUCH AN IMPORTANT CONVERSATION IN THE CONTEXT EVEN OF THE BUDGET, BECAUSE THERE IS THIS BIG DEBATE OVER JUST HOW STRONG IS THE ECONOMY RIGHT NOW. THE JOBS REPORT TOMORROW IS EXPECTED TO SHOW THERE'S REALLY STRONG JOB GROWTH OVERALL. MORE THAN TWO HUNDRED THOUSAND JOBS EXPECTED TO BE ADDED TO THE ECONOMY IN FEBRUARY. BUT IT COMES WITH THE BACKDROP OF THIS RECORD HIGH INFLATION. THOSE PRICES STILL STAYING STUBBORNLY HIGH, MEANING THAT YOU ARE STILL PAYING A LOT MORE THAN YOU WERE LAST YEAR FOR GROCERIES FOR FOUR OTHER COSTS, LIKE FURNITURE ACROSS THE BOARD. INFLATION IS STILL TOO HIGH. SO THE JOBS REPORT IS STILL REALLY STRONG, MEANING THAT COMPANIES ARE STILL OUT THERE HIRING. WHAT THAT IS GOING TO SHOW IS THAT THERE'S GOING TO BE MORE WORK THAT NEEDS TO BE DONE TO TRY TO BRING DOWN PRICES, BECAUSE IF THE ECONOMY IS TOO HOT , WHICH HAS BEEN THE CASE NOW FOR SEVERAL MONTHS, THE FED, AS WE'VE TALKED ABOUT A LOT, IS GOING TO TAKE STEPS TO TRY TO COOL IT DOWN. THAT COULD MEAN HIGHER INTEREST RATES OVER A LONGER PERIOD OF TIME. THIS ALL IS REALLY AN IMPORTANT CONVERSATION, BECAUSE WHEN WE'RE TALKING ABOUT THE IMPACT ON WHAT WE PAY, HOW LONG CAN THIS INFLATION BE SUSTAINED? OVER TIME? THAT'S SOMETHING A LOT OF ECONOMISTS ARE WORRIED ABOUT, STICKING AROUND FOR TOO LONG. AND THAT IS THE NUMBER ONE PRIORITY HERE TO ACTUALLY HEAR FROM THE WHITE HOUSE. BUT YOU HEAR IT FROM THE FED TO INFLATION HAS TO COME DOWN THAT MIGHT MEAN THAT EVENTUALLY THERE HAS TO BE JOB LOSSES. AND THAT'S SOMETHING THAT WE'RE GOING TO BE LOOKING AT TOMORROW, THAT THAT OUTLOOK