Key Capitol Hill Hearings CSPAN September 15, 2016 5:01pm-5:22pm EDT
should be paying us. we are losing billions and billions of dollars on defending owe and many of them don't pay us. if they don't pay us, i say why? hey don't ask. so those countries i'm sure will start to pay for the defense, but it's a fantastic number. it's a very, very large -- it's a shocking number. i will just finish with this. i have great respect for japan, but we defend japan, germany, saudi arabia, south korea, 28,000 soldiers right now in south korea. these are wealthy countries. nd when i say they have to pay more, a general came to refute my statement and said, doesn't
mr. trump know that japan pays 50% of the cost of its defense? and i said, why don't they pay 100%? the numbers you are talking about are massive. and when you add it all together, a lot of good things are going to happen. [applause] >> on the corporate tax rate, the corner stone of your economic policy is reducing the corporate tax rate to 15%. secretary of the treasury lew proposed a 28% rate. the u.k. is at 20%. ireland is at 12.5%. how did you settle on 15% of the target for the u.s.? >> a lot of that has to do with the cutting because we are going to be cutting costs also. i think we are going to unleash something that is so amazing and a lot of it is competition. ireland is the lowest.
right now we are the highest in the world of the industrialized countries. and we set it from a competitive standpoint and added to that and very importantly to that the cost cutting. and there's tremendous -- when all of us in the room did this, when we buy companies, we like to buy companies that are poorly run because we have so much run to cut. we don't want to run a perfectly running machine where we can't do too much. we have tremendous waste, fraud and abuse. our military orders equipment that is ordered politically motivated because they will buy equipment that isn't what they want and the equipment that the generals want are better and less expensive. my whole thing has been make america great again. we are going to make america great again.
> now it's time for morton who is on our board and chirme of the department of economics at harvard. part of the issue in reducing tax rates is the impact on the deficit. what offsets would you propose to compensate for the reduced revenue? you mentioned in your speech that you believe over time your economic policy can be revenue neutral. >> we think and hopefully beyond that. evently with time this is going to work out. but the big things in terms of neutrality is going to be the amount of business that we generate, the fact that companies are no longer going to be leaving. you have to look at the list of companies. ford motor company, all small cars going to make them in mexico.
it's like a story in the newspaper, but devastating for michigan and areas of the country that have to go through this. we are going to keep our companies here. our companies are leaving because our taxes so high and they can't bring money back in and. the regulation is so massive that our companies are leaving us. number one, we are going to keep companies and won't be leaving because they will have a better deal. and importantly, we are cutting costs, cutting budgetary costs and lots of costs. many costs that we are going to be cutting and enhanced by certain things like -- with the military and the defense of other countries which other people didn't know. in this room, until i spoke about it a year ago, we defend, as an example, germany or japan. pretty much knew south korea and we are defending south korea. but saudi arabia as an
example. saudi arabia we know. lots of wealth. lots of money. they don't pay us very much for what we do. and you could ask yourself how long would saudi arabia even be there if we weren't defending hem. and i think we should defend them, but we have to be compensated properly for that defense. i'm sure they will be thrilled to on hear that. [laughter] >> one issue that came up previously was the potential for efault on the u.s. debt. the u.s. has a perfect credit history. is there any scenario you would consider defaulting on the u.s. debt? mr. trump: no. there are some areas where you could buy back debt. i said buy back debt. this isn't like building a real
estate project and the market crashes and you have a shot at a bank. i loved those days. someone said i'm one of the great in the world. i love buying debt and negotiating debt. with the united states you are talking about something beyond the gold standard. the answer is no. but you can buy back. we are not talking discounts. you can discount and do things. the debt of this country is absolutely sacred. absolutely 100% sacred. [applause] >> regarding regulation, you said that we have too much regulation and that excess regulation impedes growth. what would be your strategy for reducing excessive regulation? mr. trump: i go back to the heads of the various groups, agencies, all of the parcels of government and i would be
putting very, very top people into negotiate. we put political people in to negotiate and people who gave contributions, we put people that work the system. we put people that shouldn't be there. and when you say can you cut 1% off your budget and they say that's impossible. a know some of the people in this room are total killers. they said i can get it down 25% in one year, maybe more. i said take it easy, relax. there are people in this room who would say that. 1% a year for 10 years, it's a massive difference. 1% a year for 10 years. so i would really have it done at the level of the group running whatever individual thing within government they are running and they would be able to do if we have the right people. we don't have the right eople.
we have people who shouldn't be doing what they are doing. they have people under them that are far, far more competent than they are. and those people lose respect for the system when they see what's coming. and i can't tell you how strongly i believe this and the trade deals are so bad. nafta has destroyed our country. nafta has destroyed the manufacturing leg of our country. look in upstate new york and lost 40% of their manufacturing and going to lose a lot more. hillary clinton said she was going to bring jobs back to new york. upstate new york, long island, you look at things that are happening. building after building is empty. they all left. so when we negotiate great trade deals -- and we aren't including that to a large extent in the numbers we are giving you. when you take nafta and make it
a two-lane highway and not one lane, we have a lot of catching up to do. they have absolutely stripped this country of its manufacturing jobs and jobs. and companies that destroyed companies. thousands and thousands of companies. millions of jobs, we are going to get that back. we are going to get that back. when i talk about tax cutting and balancing, a big part of it is we are going to have great trade deals. i think this man will be in charge of china. we will do very well. but seriously, we have the greatest negotiators in the world. when china enters that negotiation, they come in with 20 people that are the toughest, smartest, meanest, they don't say good morning, isn't it a lovely day? how did the yankees do last night?
there's no talk. we get down to business, boom. no games. we put people in there who don't know what they are doing because this is why we have deficits of $500 billion with one country. we built china. and i say that with great respect for china. they -- i have many friends from china. the biggest people, the richest people, they cannot believe what china gets away with. and when i announced i was running for president, well, i didn't mean that. they didn't know this was going to happen. but in the good ole days, they would say we don't believe. your government is stupid and now they deny they ever said hat.
[applause] >> on staffing, how would you run a government to make it more effective? what would be your criteria in choosing the senior dministrators? mr. trump: track record, great competence, love of what they're doing, how they're getting along with people, references. no different when you are owning a company, how you hire top people. people with heart also is probably the one thing you need in government. there's some there, but not a lot. but you need people that are truly, truly capable and you need -- and i think so much has to do with past history, how is it done, how is it worked out. you understand that perhaps better than anybody. and we have to get the best people. we can no longer be so politically correct. we do things today, people are
afraid to walk, afraid to talk. they can't speak. they afraid they are going to say a wrong word and shunned from society. that only lasts for a week if that happens. but we have to stop being politically correct. we need to get the best and finest and if we don't, we will be in trouble for a long period of time and maybe never come out of it. i'm not saying it because it's myself, this is going to be the last election we have a chance to make this country great again, make it wealthy and strong again. make it all of the things we want to see. but i believe this is the most important election that we have been involved in for many, many, many years. many decades, because it's going down. the supreme court justices that i told you about before, if they put certain people onto the
supreme court, our country is going to be a whole different country. large-scale version of venezuela, a totally different deal. and this is the last chance that in my opinion our country has to really get better, to get well. and i just think this election is so important, not because of me, but because the ideas, the ideas that we have, the ideas that we need to do what we have to do. but i think it's going to be a very, very important election and that's why we are seeing such enthusiasm. we have people showing up, 25,000 people show up and 30,000 eople. [applause] mr. trump: we announced one day, we had one in the pensacola the other day, we had tens of thousands of people that showed up a day and-a-half before the speech on twitter. people want to see great things
happen to this country. people really love this country. the people of this country really love this country and other countries want to see great things happen because it's so important. i think this is going to be the most important election we have had for many, many decades and i'm not sure you are going to have a second chance at it. [applause] >> donald, on jobs, what industries do you expect would benefit from your economic plan to create high-paying jobs going forward? mr. trump: i think h and r block would be a disaster. how about people -- it's so complicated. and people that frankly are making a small amount of money. they have to go and have their tax returns done by people.
and by the way, when they're done, you'll have 10 different tax people. the whole thing is crazy. so that would be one industry that wouldn't do well. i can tell you an industry that will do well and industry we can use and prices are low now. but when prices go up is the energy industry. we have amazing people in that industry and they are being decimated. they are being absolutely decimated. and energy is so important. and we found out because of new technology, whether fracking and many other things. we have more than just about anybody in the world. our land is so valuable because of what is underneath it. we have to be careful and environmentally sound. that's very important. it's incredible when you look at what's happened in the last five
years, we can be self-sufficient otherwise we will be stuck in the middle east. we have to knock out isis. i didn't want to be in that war, but i wasn't a politician and nobody cared. i didn't want to be in the war. the way they got out was bad, so quickly. isis developed. we have to knock out isis. you see the atrocities. yesterday, 22 people were hung from racks in a slaughter house and then throats cut. can you imagine, nobody has heard of things like this before and we talk about waterboard hing. it's an incredible thing. not playing on the same playing field. if you look at the atrocities, just yesterday with the meat hooks, we have no choice but to totally decimate isis. we have to do it and do it rapidly. we have no choice. [applause]
mr. trump: and we have to get to rebuilding our country and rebuild the infrastructure and rebuild our country because it's mess. >> last question. if you were to advise the fed, what would you advise them to do regarding interest rate policy? mr. trump: lower interest rates, of course. you are going to have them until january 1, because obama wants to go and play golf and wants to leave and no stock market disruption. and i said, i think the fed is being totally controlled politically and not raising rates and being controlled politically. i think they are going to below until -- i don't know if they're going to have a raise. but they will be low to the end of the year.
shouldn't be discussing it. i just think it's a terrible thing that's happening because we are doing it for political -- i believe the fed is very political and has become very political, like many other groups in this country. beyond anything i would have ever thought possible. so i think you are going to have low interest rates until the end of the year. maybe no interest at all. and the market will stay artificially high and then have to see what happens after hat. they are not doing the right job. with all of that being said, all my life i liked low interest rates. because i'm doing this, i can't take advantage of it. but that's ok. i will say it's become in my opinion, the fed has become extremely political. i don't think they would do -- i believe if it was a political decision or the right decision, they wog go with the political decision every single time. [applause]
>> that concludes our fireside chat. once again on behalf of myself and everyone here, thank you very much for joining us today. mr. trump: thank you very much everybody. thank you. [applause] >> we would ask everyone to stay in place so that mr. trump and governor pence and their security detail can leave. the next meeting of the economic
club will be a breakfast on onday where we will be hosting quebec premier and the president of the environmental defense fund. that same day, monday, september 19, we are hosting a luncheon featuring paul ryan, speaker of the house, where he will share his economic and tax reform plans. on tuesday, the 20th, we're hosting premier lee of china. and there are still a few seats remaining for both of those vents. and we hope you might be able to join us. thank you for joining us today, ladies and gentlemen. thank you. [captions copyright national cable satellite corp. 2016] [captioning performed by national captioning institute]