WARNER: Bob, I think you've got to look at both sides of the ledger. Long before I was in politics, I spent 20 years in business. I built companies. And you've got to look at the revenue side. You've got to look at the spending side.

We're looking at a ratio of about $3 in cuts for every additional dollar in revenues. And the revenues we're talking about literally are coming from lower rates, where we can lower our rates on individual and on corporate rates back to where they're much more competitive on a worldwide basis. But we're getting rid of a number of the tax expenditures.

I mean, a fact that I'm not sure most Americans realize -- we collect about $1 trillion a year in income taxes, yet we have $1.2 trillion a year in income tax expenditures, deductions, many of them that are popular, charitable deduction, home mortgage deduction. If we would cut back on some of those, we could actually lower rates and still increase revenues.

SCHIEFFER: So that's where you would get the additional revenues, by eliminating deductions, not necessarily by raising taxes?

WARNER: We're not talking about raising taxes.