If Americans want larger entitlement programs, they must be prepared to pay "much larger taxes," Glenn Hubbard, former economic official in the Bush administration, told CNBC's "Squawk on the Street" on Wednesday.
Looking beyond the "fiscal cliff" of tax increases and spending cuts that are scheduled to hit at the end of the year, Hubbard said there needs to be new budget roles to prevent entitlement programs like Social Security and Medicare from crowding out spending on infrastructure, defense and education.
"We need a budget rule that says when we change our liabilities in Social Security and Medicare we have to ask the Congress to pay for them by either raising taxes or cutting spending," the economist and dean of the Columbia Business School said. "That forces Congress to think about the mix between taxes, spending outside the entitlements and spending on the entitlements."