NEIL CAVUTO, FBN HOST: We are getting word in from the House appropriations committee chairman Hall Rogers. He's a Republican from Kentucky that even if they were to conclude a bill today with this 72-hour sort of heads up, you have to read it, it couldn't get done in time for the Friday deadline. So at the very least there would be a temporary shutdown. I want to get reaction to that with Lynn Woolsey. She is democratic representative from the fine state of California.

Congresswoman, what is your sense of the way things are going? Does House Appropriations Committee chairman have right, the time is just not there?

REP. LYNN WOOLSEY (D), CALIFORNIA: The time may have, is may be, we may be out of time for at least a one-day delay. But, we didn't have to be here. And the very idea that every time the president, the Senate reached out to compromise with the Republicans, they moved farther to the right.

I mean, it is just an insult to the people of this country. I mean today, Congressman Ryan came out with his budget that would cut Medicare and leave seniors at the whim of insurance companies. That isn't what the people of the United States want.

CAVUTO:They don't want the blame game either, right, congressman? I mean, you're targeting Republicans as you want, that's fine. They target you, fair game.

WOOLSEY:Absolutely.

CAVUTO:But the fact of the matter is ma'am, we have had this situation with a budget that isn't a budget since last year when you guys failed to agree on a budget. So the blame can go both ways. All I'm saying now is we're on this toilet here and nothing is changing. So when, someone comes out -

WOOLSEY:Neil.

CAVUTO:Wait, could I just clear on this. When someone comes out with an idea to cut spending and it might be egregious to you, why just reject right out the gate?

WOOLSEY:Because it is not balanced. How can you balance this, make all the decisions on cutting the most vulnerable people, programs for most vulnerable people in this country? Why aren't we raising taxes on the very wealthy oil companies and why aren't we -

CAVUTO:So your way to solve this - wait a minute, ma'am, your way to solve this problem is - your way to solve this problem is to raise taxes?

WOOLSEY:My way to solve the problem is to have those that are benefiting the most from this economy to pay their share and if they would, if we bring our troops home from Afghanistan, we would, and if we would have a robust public option for the, our health care, we would be able to solve all of our really all of our major problems.

CAVUTO:Ma'am, but, congresswoman, wouldn't you say it is fair to say right now, this isn't so much a problem of money coming in to Washington? It is all the spending that is going out. Isn't that the problem? Spending is the problem?

WOOLSEY:No, no, no. We have, we have -

CAVUTO:We have a 1.5 trillion dollar deficit, congresswoman?

WOOLSEY:Well, let's end the wars that we don't need, we didn't need to be in first place.

CAVUTO:OK. So end the wars. End the wars. What about the long-term entitlements? Would you just leave them alone?

WOOLSEY:No. If they have to be dealt with they have to be dealt with but not in the this -

CAVUTO:But wait a minute, Congressman Ryan tried to deal with them. You're right, a lot of criticism. I want to show you something, congresswoman that makes -

WOOLSEY:I can't see anything from here.

CAVUTO:No, no. I want you to listen. It's easy to listen. This is how this has been reacted to in Washington, just the idea of touching entitlements. Just listen to this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE:They're shrinking the elderly, causing unbelievable problems.

UNIDENTIFIED FEMALE:This budget that we're talking about today is quite frankly un-American.

UNIDENTIFIED MALE:The Republican Party is declaring war on the middle class.

(END VIDEO CLIP)

CAVUTO:How can we move the ball if we just keep kicking the ball?

WOOLSEY:Well, because, the truth of it is, when 17 percent of the budget is going to carry the majority of the cuts, we have to know we're not doing it right. There is no, we're not coming to terms with the these two wars, Iraq and Afghanistan. We're not -

CAVUTO:I know you hang on those wars. You might be right, congresswoman.

WOOLSEY:I am right.

CAVUTO:OK, fine. If you were to get out of those places right now, pull out of Iraq, pull out of Afghanistan, pull out of Libya, pull out of Luxembourg, pull out of all of them, you would still have a pile of debt that you couldn't get out of within decades. So how are you going to solve those long-term issues, even if you got out of all the wars?

WOOLSEY:Neil, you know one of the, number one things you could do is create jobs and have an economy that's vital and, where people are working and paying taxes.

CAVUTO:But imagine what you could do, congresswoman. But imagine what you could do? Imagine what you could do. Just like at home. If you weren't paying interest on a Visa bill or MasterCard bill and all of sudden all that interest expense, you didn't have to deal with it, again, that debt expense, you didn't have to deal with it. Imagine what we could do in our country if that was freed up. We're in such debt now -

WOOLSEY:We know what we to do. We know what we could do.

CAVUTO:But you're not doing it. You're not doing it.

(CROSSTALK)

WOOLSEY:We did it.

CAVUTO:We're more spending, by saying entitlements are OK and that the Republican efforts to rein them is Draconian or going to kill grandma, how are we ever going to make progress.

WOOLSEY:Well, we are going to make progress but one of the first things we have to do is make sure we're not investing in wars that we don't need to be in the first place.

CAVUTO:All right.

WOOLSEY:The second thing we're going to do is create jobs. Because people who have jobs pay taxes.

CAVUTO:Yes. Yes. But they can't do that when their government is saddling them with all this debt and all that money that could go to the private enterprise is hogged up in Washington with you folks, right?

WOOLSEY:Well, I think we can do it.

CAVUTO:OK.

WOOLSEY:And that is what is missing. Restructure jobs.

CAVUTO:Good. And then hope springs eternal. Congresswoman, thank you very much.

WOOLSEY:Thank you, Neil.

Source: http://www.foxbusiness.com/on-air/cavuto/transcript/will-gop-cuts-hurt-more-help-budget?page=2