tv Bloomberg Markets Trump First 100 Days Bloomberg April 26, 2017 1:00pm-2:01pm EDT
watching at this hour. largest revamp of the u.s. tax system in history. that is what the white house is saying, but can they pay for themselves? just in the last hour, we heard that the freedom caucus is supporting the obamacare replacement bill. ♪ david: the latest on donald is -- tax plan, this kevin, let me start with you.
know about what it might be too in the next , tough daysall week have been meeting to negotiate some type of deal to address health care policy moving forward. i can tell you that members of the tuesday group are also meeting. has saidaker paul ryan they are not going to move any type of legislation unless they have the votes to pass it. they want to avoid what happened they weeks ago in which were not able to pass. this.ant to president trump is looking for a legislative when saturday. david: this announcement is coming in about half an hour. mnuchiny treasury steve
speaking. walk us through the numbers. be 15% would apply to corporations and small businesses. corporations now pay about 35% and small businesses about 40%. bigger than what house republicans have proposed and they are little bit worried that it might be to date and they won't be able to pay for it. if they can't do it, it will be a temporary tax cut instead of a permanent thing. david: how does the white house one is to see this? they will get action that would lead to a 15% tax rate? >> they see this as an opening bid.- beta --
on the other hand, investors are really confident. they see something like this coming law this year. -- becoming law this year. david: from what we know, how similar is this to what he was describing on the campaign trail? the three-tiered tax system he did talk about on the campaign trail? >> you had larry tebow advising him as well as -- you had larry kudlow advising him as well as stephen more. a corporate tax rate cut to 15% a big went to the business andunity if they can get it no border adjustment tax. secretary mnuchin speaking
earlier today that you alluded to, and what she said the border adjustment tax in its current form would not work. whether or not they parse words on this, we will have to wait on this. representative roger williams, a conservative member of the house conservatives -- how services committee and he said a border tax is a nonstarter. more: let's get some insight into tax reform implications. joining us now from washington, d.c. great to have you with us. let me start by asking a basic question. likelyu look at what is the white house will propose.
if the tax reform or are these tax cuts and wise that distinction important? >> one is rate reduction and the other is changing policy that actually needs families and individuals do better. i think it is unfair which place they are in right now, but i think it is helpful they are moving the issue forward, putting out some ideas and we will know more later. was at the top that secretary minute -- secretary mnuchin gave is important to move the discussion forward. david: there's a lot of concern that if this is a short-term reduction, we are going to see the deficit go up. is that something that concerns you? >> i think what will be important is how much progrowth policies or how many policies aren't limited in what it will do. if we can grow our economy in little bit, it has tremendous positive benefit.
i think you have to look at the context of what the entire plan made it and that will be and i waited by the joint taxation committee when it comes time voting on the bill. thed: as i read description, there's a much focus on growth. the white house convinced we will see more growth. it talked about 3% growth. if you are back sitting at the house office building, with at the convincing enough for you they don't have to worry about the deficit because we will get the economy growing faster than it has been for a while now? how much space do you have it will happen? >> i think it will be one of the things that helps create higher -- more johnson higher income. i think in just looking at tax reform, i do think it helps go along way to adopt a policy
necessary not only to grow the economy, but to move us into a 21st century tax code. other countries have been changing their tax policies. we are stuck back in the 1960's. it is important for future growth and future job opportunities to get the policy changed. this anden you look at don't see the white house supporting the border adjustment. were you surprised? >> the president has used different terms, reciprocal tax and others. we have to see what that means. businessseen the community divided on the border adjustment tax and i think when that happens, it makes it more challenging to build a consensus. we are really going to have to see what kind of building house
comes up with and the details that come. i think that helps move the issue forward. we will come back and a moment. let's get a check on markets this afternoon. julie: it seems we are seeing some reaction to the various talks out of washington as on therise, building last two sessions of stronger gains. largely, investors have been sitting back waiting for more details on legislative and executive action on the tax overhaul frontca and it looks like we are seeing stocks rise to the highs. however, it should be pointed out if we are looking for stock reaction to a tax plan, there isn't necessarily a lot of optimism. if you take a look at the bloomberg, we are tacking -- -- king a goldman hyman
goldman hyman index. are outperforming by a slim margin which implies to my again, there is not a lot of optimism being priced that a big dramatic tax plan will get done. what istinue to watch going on with the currency of neighbors as politico reports the trump administration is supporting a draft plan to exit nafta even though the president replace something will it. quick check on u.s. deal today. there's also a lot of talks on tariffs and allegedly
protectionism. just to give you days -- today's drop in perspective, we have seen steel prices recover. david: thank you. two major interviews coming up. we will speak to the house services committee chairman and tomorrow with congress and -- congressman mark meadows from north carolina. a lot to discuss as they just announced support for the obamacare replacement bill. this is bloomberg.
minutes ago, the conservative house freedom caucus that helped derail the gop's efforts last month to replace obamacare gave it a new lease on life. i don't need to tell you busy of the week it is as we push forward. talk about this in the context of all that is going on. a hearing on capitol hill today, committeefinance looking at the dodd frank act. tonight,tell you later house freedom caucus members will meet to this -- continued discussions. at night, the top members had a private meeting to discuss this
and it looks like this new development is a development out of that meeting. house speaker paul ryan said they are not going to bring any vote to the floor unless they have the votes to do it. this is a key thing all republicans campaigned on. they want to try to get something through in order to fulfill a campaign promise. much talkre was some about the conversation about health care reform. this figure in on that? think about it, republicans made the case they wanted to bring health care reform through a process called reconciliation. when you do that, it lumps it by default with tax form. now, there's a situation where law officials and administration
officials will have to decide whether or not to go around the process of reconciliation treated either way, people like director mick mulvaney said they would prefer to go that route. it remains to see if they go through. all of these are intertwined though. david: thank you. coming up tomorrow, congressman mark meadows will join us. let's return to the other big story of the day. tax reform. where do we go and what kind of timetable only looking at? paul ryan spoke earlier today. agreed house republicans with 80% of the tax reform, border adjustment tax still needs to be modified. what are the most curious to know about this process and what kind of optimism can you give
tax that you will see reform? >> the first thing always get is timing. i think we will see progress. i think the events this week will be helpful in keeping this on track. the border tax is probably the second most important question i get asked. obviously, we have a general view of it, but it looks like the speaker has said we will make some changes to it. we don't know if it will be shrunk or what the actual effect will be. it says to me they were not really achieving political consensus on the full-fledged more tax and there will be some work on it. congressman camp, let me ask you. you've been through this before. how involved you want the white house to be?
>> my view is you want the white house and ball there's a lot of things the treasury can do to smooth out impasses that will arrive -- arise. there is a lot of data in treasury and personnel that could be helpful in so you really want to courtney so that ultimately what you are working on, the president of the united states will sign and also the white house can help bring .arties together it is helpful to have the white house involved. david: is there too much talk ?bout reconciliation >> you still could have bipartisan support for a bill that goes through reconciliation.
it may not be broad-based, but you could have members, particularly on middle-class tax cuts, small business. process will be the .econciliation again, we know that that is a byzantine think and that will really impact the kind of policy you can pursue. david: on the issue of timing, secretary saysry he wants to move quickly. does that run the risk of getting bogged down? >> i think in its environment, you will have to engage as many people as possible so it will be a balancing act to move as quickly as possible and also involving other members because that is really the way. there's less deference to
leadership and you will have to bring many members along on this process and they will have to learn about tax policy and feel comfortable with it in order to vote for it. david: your device to lawmakers going forward? there's so much going on on capitol hill. sayve talked to people who undergoing tax reform in any a big undertaking let alone with health care as well. your chances of success -- it will be a challenge. there's a lot on their plate, but i think these are important issues people are anxious to get at. david: we saw the president
tweeting this morning about the role of trade deficits. you agree with him that that is a huge drag of growth or are there other things he should be focused on when it comes to the health of the economy? >> i think the trade issue is something he campaigned on, so i'm not exactly sure the direction they will go on that. he certainly mentioned reciprocal tax. he clearly wants to renegotiate .ome of our trade agreements we have to see this agenda on full. i think there will be a significant agenda and the president has unilateral authority to post tariffs. many laws have been on the books for a long time. great to speak with you. that was david camp. you're looking at the brady
♪ david: this is bloomberg markets. what find out how people are positioning themselves ahead of president trump's proposed tax reforms. you looking for details as we all are. there's commentary from the treasury secretary of so pass-through companies. what are you looking forward to this afternoon and have you contrast that with what you've heard? >> we're hearing that a 15% corporate tax. that is great for businesses. you don't reduce the
individual rates, which is the on paid on those businesses an individual return, then you have a real disconnect between big business and small business, so there needs to be something that gets changed whether it is the individual rates or special rates for pastors. we heard from the campaign from president trump was that there would be a pass-through rate only if the profits were retained in the business and i would be 15%. didn't say when the profits were distributed from the business to the individual. the house gop plan, however, said don't care if you keep the money in the business, but money have a 25% rate after a certain amount deemed earned compensation to the owner .
so, somewhere between 15%-20 5% and perhaps applicable to money cap in the business or perhaps just for amounts for services. to pass, dois were you see wealthy individuals adopting a new status because of this? >> wealthy individuals have done their businesses through pastors because you have one level of tax. c corporations pay a tax on their profits and the shareholders, owners pay a areced tax when the profits distributed as dividends. that is why we have a system where most businesses are tow-through as opposed corporations. if we don't get a special pass-through rate, then you will see businesses change to c
corporations to get the 15% rate. read that it is -- how do you see this targeted? >> we need to see a pass-through a cut tothere to be businesses operating as pastors. david: coming up next, the latest on president trump's plan to reform taxes. a highly anticipated briefing in by brady room secretary-treasurer steve mnuchin and gary cohn. you can hear it right here on bloomberg radio. this is bloomberg.
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he has been on the fcc for 5 years, named chairman if you expect prejudices and obama era, blocking or slowing rival web traffc. pai will appear at 5:30 eastern time. he is proposing a rollback of the net neutrality rules. he will be on bloomberg technology at 5:30 p.m. in new york. mark: as we have been reporting, president trump is proposing .uote, the biggest tax cut ever white house officials are expected to release more of an outline on a tax overhaul this afternoon that would provide massive tax cuts to businesses big and small. the treasury secretary steven mnuchin spoke in washington this morning. willm hopeful democrats work with us on this. this is about tax cuts that are good for the american people and i hope they won't stand in the way of creating tax cuts for makingusiness, for
business competitive for simplifying personal taxes. we are hopeful it is bipartisan. mark: the president possibly is expected to reduce the top corporate tax rate from 35% to 15%. stay with bloomberg for continuing coverage. the white house is weighing whether to pull out of nafta in the coming days, according to politico and cnn citing senior administration officials pretty drop voters reportedly under final review and could be unveiled this week or next. it could change as talks involved and officials weigh in. in france, far right presidential candidate marine le pen has dodged the question of whether she once the country to leave the euro. le pen's campaign has focused on opposition to the european union. she told french television she understands the concerns of many french that their savings could lose value if the country returns to the franc.
a u.s. navy guided missile destroyer fired a warning flare towards an iranian revolutionary guard vessel coming near it in the persian gulf. that is according to one american official, who says the latest tense naval encounter between the two nations happen monday as the iranian vessel came within 1100 yards of the navy ship. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. david? david: thanks very much. where moments away from secretary steve mnuchin's comments on president trump's tax reform plan. for more ahead of that life event, i want to bring in bloomberg's chief washington correspondent. you,, let me start with and this rollout today. that treasury secretary steve mnuchin speaking this morning at an event in washington. i understand that was long scheduled. what do you read into the
president putting forward gary mnuchin atecretary the front of this tax reform proposal? >> it shows who he is listening to in terms of economic advice. there was some concern during the campaign about who was advising the president on economic issues. but, the juxtaposition of gary cohn as well as secretary mnuchin, standing together behind the podium, clearly sending a signal for the markets, sending a signal to the business community that these two are some of the top advisers with whom president trump is going to be crafting significant economic policy on. on the notion of what we can anticipate, we should quickly go through the list. first and foremost, he's going to call for reduction of the corporate tax rate to 15%. in addition to that, he's going to decrease the repatriation rate the company's pay on corporate earnings, 10%. he's not going to include the border adjustment tax.
this has been driving the conversation inside the beltway, inside the halls of congress, all throughout k street in washington because it has pitted significant industries against one another, and it's a plan that was first conceived in the new congress, house speaker paul ryan. david: let me ask you about that border adjusted tax rate i quoted the house speaker coming, there is 80% agreement, if you are running a marathon, that last leg is often one of the most difficult parts of it great how hard will it be to find that agreement on this last 20%? >> it will be quite difficult. there was broad agreement that they wanted to repeal obamacare and when they came down to details, that is when it fell apart. they agree they want to lower rates but they don't agree how to pay for it or if it should be paid for by economic growth. just speaking with members of the ways and means committee, who were telling me they are still going to legislate, they are open to changes, especially from retailers and oil refiners who really oppose this idea because they import products.
it's not clear at all if this has any life. a lot of people are saying, ding dong, the border tax is dead. role of theis the joint committee on taxation here as we move forward? nonpartisan group in congress. they are the scorekeepers, the economists and tax experts will look at, here are the proposals and here is what they project it will cost in terms of revenue to the government. members can go to them and say, i have this idea. in the joint taxation committee will tabulated and give them their best guess. david: kevin cirilli, the white house set to release its proposal. we have this radio ryan plan for some time now, the blueprint they put forward trade what happens in terms of negotiations? i mentioned the 20% of the agreement we have yet to find between these two sides. what happens next kevin: we have to take it back to the committee.
once it gets out of committee, that will take quite some time. several weeks defensively, even longer during that time period. once it comes out of committee, it will come to the floor of the house. the person i'm speaking with inside and outside the administration says yes, this could take perhaps it will longer than president trump would ultimately like. the talks and what we are about to hear from secretary mnuchin and mr. khan are designed to jumpstart and kickstart the conversation. we are going to be hearing a lot about things in the coming days and weeks ahead about revenue neutrality, just how the administration plans to pay for this tax plan, especially if they are not going to do the border tax. they're arguing that economic growth and about 3% would be able for the administration to pay for an offset some of the costs of the tax burdens they're are calling for. there's a line of thinking, especially when you talk to more conservative members in the house, that that might not be
good enough, that they would want to see just exactly how they are going to pay for it, and that's when you start talking about cutting government and costs to certain programs, which democrats don't like at all. david: i will put a question to you i put two dave camp a moment ago. getting to kevin's point, there's a believe among administration officials that we will get to 3% growth and that will pay for all of this. do lawmakers agree with that? >> it is split. >> thank you all for being here. obviously today we are here to talk about the president's effort to provide tax relief to both our corporations that will help grow jobs and to middle americans. two people here to explain it, the director of her national economic council, gary cowan. -- cohn. he will walk through why we are doing what we are doing and the personal side of the tax. secretary steve mnuchin
will walk through the business side and corporate tax of what the -- corporate side of what the president is doing to bring jobs back to the country to make -- to help our economy grow. at the end, we will take questions on this. you are being provided a one pager that provides the top level aspects of the plan, and both the director and the secretary will go into further detail and take questions. cohn dir. cohn: thank you, sean -- cohn. sean.ohn: thank you, this is a historic today and one we have been looking forward to for a while. a generatione in opportunity to do something really big. president trump has made tax reform a priority, and we have a republican congress that wants to get it done. quites something that honestly i hope the democrats
would support too, because it's good for the american people. to seizedent is going this opportunity by leading the most significant tax reform legislation since 1986. and one of the biggest tax cuts in the american history. we have been working on this for a long time. we've had great meetings, we had a great meeting last night with the leadership of the house and the senate. we've agreed on many of the important principles of tax reform. to workingward together with the house and senate very closely in the weeks ahead. the president has focused on 3 things since this campaign. job creation, economic growth, and helping low and middle income families who have been left behind by this economy. he understands there are a lot of people in this country that feel like they work hard and they just cannot get ahead. they are sick of turning their paychecks over to washington and having no idea of how those dollars are spent.
they are frustrated by tax code that is so complicated, they can't even do their own taxes. that's why tax reform is such a big priority to this president. he cares about making the economy worked together for all american people. here's a little history. when president kennedy cut taxes in the early 1960's, the top rate on personal income was over 90%, and there was rampant tax avoidance. then, 20 years later, president reagan took rates down to 20% for individuals. since then, rates have been creeping back up. and then, on the business side, when president reagan left office in 1988, the corporate tax rate was 34%. and it hasn't changed much since. for the last way five years, other countries have been aggressively cutting their tax rate and moving to a territorial
system in order to attract business. the u.s. has done none of that. in 2017, we are still stuck with a 1988 corporate tax. that's why we are now one of the least competitive countries in the developed world when it comes to corporate tax. so tax reform is long overdue. we are going to cut taxes for businesses to make them competitive, and we are going to cut taxes for the american people, especially low and middle income families. today, i'm going to outline the principles we've put in place for personal tax reform, then i'm going to hand it over to secretary mnuchin to talk about the business side. first, there are a few statistics for you on the individual side. in 1935, we had a one-page tax form consisting of 34 lines, with two pages of instructions. today, basic 1040 form has 79 lines and 211 pages of
instruction. instead of a single form, the irs now has 199 tax forms on the individual side of our tax code. taxpayers spend nearly 7 billion hours complying with these tax codes every year, and nearly 90% of taxpayers need some help in filing their taxes. we are going to cut taxes and simplify the tax code by taking the current seven tax brackets we have today and reducing them to only three brackets. a 25% bracket, and a 35% bracket. we are going to double the standard deduction so that a married couple won't pay any taxes on the first $24,000 of income they earn. in essence, we are creating a zero tax rate. yes, a zero tax rate for the
first $24,000 that a couple errands. the larger standard deduction also leads to simplification because far fewer taxpayers will need to itemize, which means their tax form can go back, yes, to that one simple page i talked about earlier. families in this country will also benefit from tax relief to help them with child and dependent care expenses. we going to repeal the alternative minimum tax. the amt creates significant complications and burdens which require taxpayers to do their taxes twice to see which is higher. that makes no sense, and we should have one simple tax code. as we all know, job creation and economic growth is the top priority of the administration. nothing drives economic growth like capital investment. therefore, we are going to return the top capital gains tax rate and dividend rate to 20%,
repealing the harmful 3.8% obamacare tax on dividends and capital gains. that tax will be a direct hit on investment income and small business owners great we are going to repeal the death tax. the threat of being hit by the death tax leaves small business owners and farmers in this country to waste countless hours and resources on complicated estate planning to make sure their children aren't hit with a huge tax when they die. no one was to see their children have to sell the family business to pay an unfair tax. we are going to eliminate most of the tax breaks that are mainly benefits to high income individuals. homeownership, charitable giving, and retirement savings will be protected. but other tax benefits will be eliminated. this isn't going to be easy. doing big things never is. we will be attacked from the left and we will be attacked from the right. but one thing is certain.
i would never, ever bet against this president. he will get this done for the american people. with that, i will turn it over to secretary mnuchin to go over the business tax plan and then we will come back and take questions. gary.nuchin: thank you, we have been working on this plan for a very considerable period of time, and our objective is to make u.s. businesses the most competitive in the world. right now we have a 35% corporate rate on worldwide income in deferral. it is perhaps the most complicated and uncompetitive business rate in the world. not a surprise that companies leave trillions of dollars offshore. under the trump plan, we will have a massive tax cut for and massive tax reform and simplification. as the president said during the
campaign, we will lower the business rate to 15%. we will make it a territorial system. we will have a one-time tax on overseas profits, which will bring back trillions of dollars that are offshore to be invested here in the united states to purchase capital and to create jobs. the president is determined to unleash economic growth for businesses. this is not just about large corporations. small and medium-size businesses will be eligible for the business rate as well. as gary said, we have had very with thee meetings house and senate working weekly to get this done. we will continue to do that. we are determined to move this as fast as we can and get this done this year. i would also just comment that we will hold listening sessions. one thing this president has done very well is listen.
we've had hundreds of business leaders here, from all different types of areas. manufacturers, retail, airlines, community banks, big banks. we are listening and we have been taking feedback. finally, i would just add, the president's objective is creating economic growth. as we said before, we believe we can get back to 3% or higher gdp that is sustainable in this country. the overall economic plan consists of massive tax cuts and tax reform, and renegotiating trade deals. with that, we will unlock the economic growth that has been held back for too long in this country. with that, we would both be happy to take a few questions. when you talk about the
individual tax rates, you are talking about illuminating those tax rates, are you talking about eliminating tax deductions? sec. mnuchin: correct. we will eliminate on the personal side all taxed inductions other than mortgage interest and charitable deductions. we think that will be sweeping reform. you talk about lowering the dividends and capital gains tax. how does that measure what you said this morning about protecting the middle class from the very wealthy, who might be able to take advantage of the loophole, but that would give them a lower tax rate? sec. mnuchin: what we said is the business rate will be available for small and medium-size businesses as well as corporations. however, we will make sure that there are rules in place so that wealthy people can't create pass-throughs and use that as a mechanism to avoid paying the tax rate they should be on the
personal side. i would just say on the dividend rates, we believe that restoring the 20% capital gains rate is critical to investment in this country. >> a question about your past through. the initial plan the president as a candidate outlined also included freelancer, contract workers at 15%. what is your rate on repatriation funds overseas, and gary cohn, what about the marriage penalty the president promised to eliminate? >> first i comment on rate of repatriation. we're working with the house and senate on that treaty will be a very competitive rate that will bring back trillions of dollars. as it relates to the definition of contractors and things along those lines, again. those will be the details we will be working with congress on as we turn this into a bill that will get signed by the president. >> as secretary mnuchin said, we are working very diligently with the house and senate by coming up with final details of the
bill. you are going into very micro details on some of these -- >> very important. >> we agree. our basic premise is to simplify the tax system, lower rates, and make it easy. we don't want to penalize people . we want to make the system very fair. that is one of the things on our list we will work on, as secretary mnuchin said, we will get back to you with definitive answers on all these details. the -- do you have income brackets established? we are in constant dialogue with the house and senate. as the secretary said, we are holding a bunch of listening groups right now. we have outlines. ofhave a broad brush view where they are going to be. we're running enormous amounts of data on the proposals right now. we will be back to you with very firm details. we are very confident to where
they are going to be, we just wanted to get out and give you a broad brush overview where we are. the president very much believes in taking input, over the next month we have a lot of different discussions going with a lot of different groups that are interested. >> does that also mean state and local income taxes, that eduction being eliminated? -- deduction being eliminated? when you talk about fulfilling the 3.8% tax, small business investment income, is this your first attempt to start pulling back on obamacare? what did you say to your fellow reformcans, who say this is more about corporations versus cutting the deficit? >> this tax reform package is about growing the economy, creating jobs. it's about the economy. comes in every
day and talks to the two of us about economic growth, prosperity, and jobs, and what are we doing to stimulate .conomic growth that is how we are looking at this plan. 3.8% tax on capital gains, the president looks at that very seriously as being a tax on capital being spent to stimulate economic growth, people putting investment capital to growth, and people being taxed on their personal businesses. we are trying to get rid of that to be more stimulating. [inaudible] it's business. it is to stimulate business investment rate we're trying to stimulate business investment. >> does it pay for itself? is this plan revenue neutral? what year is nonnegotiable? -- here is nonnegotiable? will the president refused to
sign that? >> the core principles of this, we have been meeting with the house and senate, and they agree 100%. the core businesses make business rates competitive, bring back trillions of dollars to create jobs, simplify personal taxes. those corporate suppose are nonnegotiable, and that is something we all feel strongly about. to will it pay for itself, i think as we have said, we are working on lots of details. people in the00 treasury who have been working on tax and scoring lots of different scenarios. this will pay for itself with growth and with reduced production of different deductions, and closing loopholes. [inaudible]
is the president comfortable with that? will he sign something? >> when we look at the deficit, and the deficit is gone from $10 trillion in the last administration, that is a problem and the president is concerned about that. this plan is going to lower the debt to gdp, the economic plan under trump will grow the will create massive amounts of revenues, trillions of dollars in additional revenues. let's go in the back. >> if you don't replace some of the revenue with the border adjustment tax, how will you make up for the deficit caused by the reduction in the corporate tax rate? >> today we are putting out the core principles, which include rates. we think that is an important part of the plan. we will be working very closely with the house and the senate to turn this into a bill that can the president can
sign, and there's lots of lots of details that we are going into how that will pay for itself. [inaudible] system, isial tax that a border adjustment tax? what is it? >> a territorial tax system means that u.s. companies will related toon income the u.s. it is territorial, u.s. companies will not be subject to worldwide income, which has made them uncompetitive. >> are you concerned that perhaps the republicans might not go along with this, just like they didn't go along with obama care reform? >> there's a lot of desire from everybody to pass tax reform. as gary said, we are at a historic moment and republicans and democrats want to create jobs and want to help the american people. as i said, the core principles of this, we have agreement on
and we will work forward. let's go in the back. >> thank you, mr. secretary. quick question, you bring up repeal of the death tax, the estate tax. this is an issue that has been going on for decades, and it used to be you were always talking about phasing out the death tax over a period of years. groups such as jim morrison seniors association, so they wouldn't accept it and want an immediate filling of the death tax, is this what this will be or will it be a phaseout measure? >> right now our initial proposal is to immediately phaseout when this proposal becomes effective to phase out the death tax immediately. with the implantation of the new tax, the death tax would disappear. questions.
this is a statement of corporate principles. it's just one page. obviously tax reform may be much more cop. when will we see the actual plan? >> we are moving as quickly as we can. we're working with the house and senate on all the details, and this is everybody has an agreement, we will move as fast as we can. when we have an agreement, we will release the details and go through. >> will the president release his tax returns -- >> the president has no intention. the president has released plenty of information and i think has given more financial disclosure than anybody else. i think the american population has plenty of information -- [inaudible] me, other people have the right to ask questions. you mention middle-class tax cuts. middle-class families watching
this tonight on this news, family of four, median income, $60,000, what does it mean for them? >> it could mean a tax-cut. >> how much? >> it could mean a tax-cut. will let you know the specific details at the appropriate moment. we are in very robust discussions with the senate, with house leadership. they are progressing very quickly. we will continue to give you more details as we have them. >> two more. secretary mnuchin, it was exactly a year ago that-candidate trump was asked, if you believe in raising taxes on the wealthy. he said, i do, including myself. andisn't he doing that, will the president and up paying more or less taxes as a result of this plan? >> i can't comment on the president's tax situation, since i don't have access to that.
but i would comment that our objective is the reduction in taxes will be offset by significant reduction of deductions and other items, so the effective tax rate is what we're focused on. why don't we take one more question right here? >> you may not have seen the president's tax returns but according to our estimates, his there, getting rid of the alternative minimum tax would relieve him of $5.3 million in taxes. a lot of what you presented today will benefit the president's own businesses. >> what this is about is creating jobs and creating economic growth. what massive tax cuts and massive tax reform and simplifying the system is what we are going to do. the amt is another example of a third complicated set of rules. thank you, everybody.
[inaudible] that was treasury secretary steven mnuchin and white house economic adviser gary cohn outlining president trump's tax plan great let's get to our team of reporters covering all anglee main headlines. the trump administration plans to reveal the amt, they will pay for child care, also the dividend tax for obamacare. for companies, they are proposing a tax cut of 15% and reform of simplification. small and medium will be eligible for a different rate. they are looking at a different system. we will get more information later. and one to encourage companies to bring back cash held overseas and put it to use in in hiring. let's get to our panel. we have the chief washington correspondent. and we have two other reporters from