Transcript of a clip that Thom played of Congressman Brian Baird asking Comptroller David Walker if tax cuts pay for themselves.

Congressman Brian Baird and Comptroller David Walker, clip played on 03 August 2007 show

[Brian Baird] Did the tax cuts that we've seen over the last number of years pay for themselves?

[David Walker] Absolutely not. Very few tax cuts pay for themselves.

[Brian Baird] We can quote you on that as 'Absolutely not'?

[David Walker] Absolutely not.

[Brian Baird] So there's the...

[?] Absolutely they can quote you as saying, 'Absolutely not'.

[David Walker] Absolutely you can quote me as saying, 'Absolutely not'.

[Brian Baird] So if we've seen a decline in the deficit, the decline in the deficit is not a direct result of the tax cuts.

[David Walker] As Dr. Orszag [Director, Congressional Budget Office] said before, some tax cuts recapture, you capture part of the costs of some tax cuts, but the the type that we've seen recently, they do not pay for themselves. And that's primarily due to economic growth, which is why we're seeing revenues go up. I think it's important for you to understand is, if we have any inflation at all, if we have any economic growth at all, revenues are going to go up, if you do nothing. The question is, are they higher than otherwise they would have been, had the action not been taken?

[cross talk]

[Brian Baird] ... the answer to that question is?

[David Walker] And the answer is?

[Brian Baird] You said the question is, are they higher...

[David Walker] They don't pay for themselves, so no, they are not higher than they otherwise would have been had the action not been taken.

[Brian Baird] Thank you.