tv Newsmakers with Representative Kevin Brady CSPAN July 2, 2017 10:00am-10:36am EDT
about security in federal prisons. kevin johnson of usa today who covers the justice department will be our guest tomorrow morning on "washington journal." kevin brady, chair of ways and means committee is on newsmakers. and you for joining us for hope you enjoy the rest of your holiday weekend. and have a great week ahead. [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] >> here on c-span, "newsmakers" is next with kevin brady of texas.
then united nations nikki haley testifies before the house foreign affairs about u.n. operations. and later, acting nasa administrator robert lightfoot outlines the 2018 budget request. on "newsmakers," we are joined by kevin brady, chair of the ways and means committee, thank you for being here. we have with us in studio, richard ruben, tax policy reporter and congressional reporter from the washington post. mike will go first. >> thank you for joining us. tax reform, the fiscal situation. i wanted to start with health care. the billing you and your fellow chairman put together in the house is over in the senate and we saw a lot of interesting therepments and i think
is a lot of questions about what is going to happen going forward in the senate and i wanted to ask you about one thing in particular we have seen this past week which is more senators talking about changes to the taxation element of that bill. we're hearing senators saying we may not want to repeal all of the obamacare taxes, especially the 3.8. how concerned are you they will go backwards on the tax policies portion and what will it mean for the policy of the bill and for its passage in the house? rep. brady: the senate is experiencing much what the house is members want a role say in the health care bill and wanted to work. i am confident that will pass a good health care legislation. on the investment side, i think senator donnelly said it come it would be a mistake.
desk said it would be a mistake. stop punishing people from investing in the local community and will trade 100,000 jobs and we need to them and to help grow paychecks as well. i also believe the current $1 trillion in the current health care law has harmed the economy. it does not count health care prices down and kept insurers and the markets and have not accomplished any of the goals either. i think at the end of the day, if congress is not willing to eliminate that has now, why would it do it later? i think it is important, in my tow, senator toomey is right continue to push for getting rid of the taxes. >> if that bill comes a back to the house with that tax intact, will it be a problem for the ratification in the house? rep. brady: i think -- it is a
tough red flag. clearly, the house spoke very clearly, we want those taxes out of the economy, especially that one is very anti-growth, anti-jobs provision. it certainly does not help in health care. the senate has worked to do. i am really hopeful to get it right. it will be aect straight up our down vote in the house? what's a level of changes may they make until you say we have to talk about this more cannot take it? rep. brady: it to depends on the final product. we know the initial drafts. they have a lot more work to do. we will way what the final product is as it comes back to the house. we will see from there. the asked you about a tweet president sent out on friday morning.
does not get done, congress should repeal obamacare and then all back and replace it at a later time. that was an idea batted around in sort of rejected. do aat a credible idea to repeal and then go back and do a replace if the senate stalls it? rep. brady: that it doesn't achieve what president trump set out to do to not only repeal the damaging effects of the law, how people trapped in it right now and we see a collapsing in front of our eyes. transitionlace that to a free market where there are a lot more choices and getting control of washington back to the states so they can assign health care right for the region or state. i think the senate's approach, of notly the house's, simply repealing but put into place elements to make health
care for double is what the president set out to do -- and continue to be our goal. congress isay that going about busy using the reconciliation process, you would agree you cut not go back and do a republican only bill to replace wants repeal is? rep. brady: i agree. fairuld obstruct any opportunity to replace the affordable care act in the future. the very best opportunity is good awful transitional affordable care -- thoughtful transitional of rubble care right now. >> where are you in the process? we are hearing the end of july? the assumption it would be done in january and other issues. how long can republicans keep spinning of this and at one point does it end? everyoney: you know,
has high expectations in spring training for the season. as the season goes on, you withdraw elements and the legislative process is no different. moving health-care it took longer in the house that we anticipated. thesenate is experiencing same thing. this timetable of the summer is, i think a good timetable. certainly for us as we're focused on tax reform that also works well for us. you have seen our budget and moving on to tax reform in a week, bold way. >> how do see the interplay of the 2? investment income that might or might not remain. part of the argument that you have made is to do health care first is because it helps of that reform. what about investment tax was left in place? rep. brady: it would make tax
itorm ultimately less -- would hurt our efforts. goalsas you recall, our and tax reform is we want a code designed to grow jobs and wages and doing that leapfrog america to the top three places on the planet for the next job. leaving in place taxes that punish investment whether local business that you support may be a company and the stock market may be buying that second home for rental income and when you punish those activities, you heard to the economy. chairman, right now the house is working through the process, more extended process that it of hoping to pass a budget, which is a crucial thing for tax reform, obviously.
you are setting the stage with a reconciliation. are you concerned that it is been so hard to get an agreement on that considering what is s take for tax reform -- what is at stake for tax reform? rep. brady: i think the budget process is going as expected. her interaction with us on tax reform issues and reconciliation has been just perfect. says #ta -shirt that xreformishard. maybe he should get a t-shirt that says the budget is hard. it is the tax reform that gives us the path to do the boldest in
a generation. every member in the house whichtands the importance is while confident at the end of the day, we will get the budget out and over to the senate. thatu have colleagues wanted to be the entitlement reform budget. are you giving them the signal that, be careful, guys, we do not want to take two bit of a bite? or can you do reasonable entitlement reform at the same time? rep. brady: and this budget and reconciliation, there are members who ahead of welfare reform getting people back to work in 2018, they're asking if we could make a down payment? can we find ways to encourage people to move into work? getting them out of poverty. we are having those discussions about those issues as well.
we ought to be open to how republican members feel that balances over two years and has priorities in spending. >> you talked about a bold tax budget, the health care has to happen as well he for his what you are saying. happen before is what you are saying. rep. brady: it can get done. we are on timetable to do that. the discussions with president trump's tax team and senate republicans, i am encouraged by the case and substance of the issues. not that you have everything resolved yet but the issues we are tackling are the right ones. our tax teams are not meeting not only regularly was working collaboratively on these major issues.
i have not seen anything yet that knocks us off our pace or delivery in 2017. my prediction is nothing will knock us off. we have to finish this in 2017. obstacles thatig will talked about a whole bunch of times is some of your colleagues talk about it, your idea for a border adjustment which taxes imports and exempt exports. you have your fellow house republicans saying cannot happen, won't happen, shouldn't happen give up on it. where are you on that? even ifoint you say, ok you think it is the best idea it cannot happen? .ep. brady: step back a minute what were trying to do is level the playing field, the u.s. and abroad to stop u.s. companies and jobs from leaving and to bring them back, not just manufacturing, research patents,
technology future as well. border adjustment we propose as the best solution to do that, our competitors use effectively in the same regard and we that works best. act the end of the day whether border adjustment in some form itpart of the solution or if is set aside for future study and we arrived at another approach him we have to solve that -- approach, we have to solve that problem. i would tell you the border taxstment, made in america and export supported by nearly 8% of trump's supporters and recommended by tax experts, including the ones for years. nonetheless, it is bold. people have concerns about how would it work even without five-year phase-in. we are having the discussions.
the tax teams and the principles are collaboratively tackling the problem. we will find a good solution that can be in the final version. >> has some other idea emerged of a plan b? view of challenge others to come up with something if they do not like it -- you have challenged others too, with something if -- you oft like it. have challenged others to come up with something if they do not like it. rep. brady: on what we call it here one of the options with refinements and modernization and other ideas and we're looking at all of them and the most important point is we are looking at all of them collaboratively. we are looking at how do we
solve that problem and the different challenges. i am really confident after the end of the day, whether they take the border adjustment idea in some form or we find another solution, we have to stop jobs from leaving the u.s. and more importantly, we cannot give up on the notion that the supply chain and the intellectual property and at technology cannot return to america. >> in your own mind as you look forward at this process, what is your sort of line for coming to a consensus? where does rubber need to meet road in coming to a determination of what it will look like? ahead,ady: in the weeks we will continue these discussions. all of the major issues are being discussed going forward. director, laid out a timetable
of september -- kohn laid out a timetable of separate -- of september. >> once you get back from summer break, you expect to have a product? rep. brady: a lot of work has to be done between now and then. and right now, we are on pace. >> let me ask you this sort of global question. how concerned that old much is left -- that so much is left to be done whether health care, budget? we have a debt ceiling issue that is going to have to be dealt with at some point. are brady: a lot of people concerned it will suck all out oxygen-- out all of the and it is typically consumed with spending and fiscal issues.
when does the eyes of the congress land very firmly on tax reform? i can speak best for house republicans and that every issue that we topple is in the context of does it move us towards tax reform? will this get us that debate that happens once every 30 years? does it clear the field to do that? from our standpoint, members continue to be focus on that. health care is our big promise to deliver on this year. and president trump's team are focused on the same time tablets. this timetables. i am encouraged by the pace we're on. >> it has been a little more than a year that you put out your framework. how much legislative work have you done? a bit.ady: quite
since we introduced it a year ago, we began with a simple question, this belongs to you. was it you want to see and the way you are taxed as a family our business? the amount of feedback with gotten, the intense interest in the blueprint has allowed us and with the senate. it allows our team to be drafting key portions. we are running that parallel track tax reform and not just the policies that are hard and you have to get the text right. >> how much time to the members do you think if they need to get with the tax when you put it out? -- if you criticism have heard criticism -- you have
heard criticism. how much time people should have? rep. brady: i think august ought to to be spent back home lend out the principles of tax reform, listening to businesses and families on what they want to see. we know what the key principles are in tax reform. we have been able, our members have been able to lay it out in a very positive way back home. we will make sure that members of congress and the public have plenty of time to look at this way how it impacts them and give us feedback. >> what have you learned from the way the health care process has gone? now you have seen the house-senate process, what lessons from the way health care
has gone over the past six months are you incorporated -- incorporating and negotiating and writing? rep. brady: two lessons for me. the sooner the white house, the house and senate get on the same page on tax reform, the better. a lesson learned. secondly, we want to make sure that members of congress and those they represent have the time to digest. think about, get input from american constituents before that to take it up. westermann to make sure we do that in tax reform. >> you mentioned the white house officials mentioned gary cohn at senator manchin have been extremely helpful on the tax peace. let me ask about the president himself. are you concerned about the role he might play given what has
happened with health care in particular? there were reports that he met with senators and called the bill he put together in the house, he called that bill mean. and basically said more had to be done. i know a lot of house members were upset about it. rep. brady: on friday, he is tweeting there should be different strategy than what is pursued in congress. you couldd are you get down a particular road on tax reform and the president with a single tweet code on do the best -- undo the best laid plans? rep. brady: and all of our discussions on tax reform with president trump directly, he has been targeted on it, very encouraging. in my view, very helpful about how we go forward on tax reform. no one has more at stake in delivering tax reform to the
people than president trump. maybe as he continues an office and look for these major issues in his role. i am hopeful that he finds the role he wants to play like reagan. the is important to have a president making the case for a fair, simple tax code that dramatically grows of the u.s. economy and leapfrogs us around the world. he can deliver that message. i'm am hopeful that is the message he takes on and stays focused. >> what do you mean that he has so much at stake? rep. brady: the president has made it clear he wants to fix is broken tax code and do it in a bold way. we can deliver that. he will play a key role. out the, he can lay issues, framed them, travel the country and to make a case.
without leadership, test reform does not happen. he has a key role to play. i am hopeful he is preparing himself right now to play that role. >> politically, to have a republican president and congress to fill of -- to fail to deliver tax reform, what would the consequences the? -- consequences be? rep. brady: we will avoid those consequences. right now, we do have an incredible amount of work. that is tax reform. is not an easy process. it can be messy. the code is complex and touches everybody's life. the american people are ready. they are starved. we asked if you want the code , saying you can
file on a postcard, they stare at a hungrily. where they can compete and win, they are more than ready for this. our job is to deliver on that. >> we have time for a couple more questions. >> we have heard more about trade enforcement action and what have you heard of those and whether you might expect any sort of proportional response to what they might be considering? rep. brady: our advice to the president has been public, take your time and get is right. there is no capacity. there are issues to be a dressed. a -- theresues to be are issues to be addressed. make sure you're listening to everybody involved.
the result is balanced. it is effective. we want to make sure however the white house frames is ultimate action, it does not punish our allies who are trading. and it does not give a green light to those trading unfairly to do more of it. whatever the ultimate decision is that actually works for america and is not backfire, i think the time they're taking right now in the interagency discussions and discussions with congress on this are really important. >> do think there's a place that congress would have to peel back what they are doing? rep. brady: that authority for the president is for the president. -- white house is tremendous has tremendous power in the response of what ever the ultimate action will be. it depends if congress believes
it has the need. >> one final question about trade. what role will congress play? rep. brady: a strong one. our new rules muscle up in these negotiations that requires 90 days off for consultation, not just on the ideas behind the trade to what are the trade objectives that congress has given to the white house. that is occurring right now. those triples will open the process, make it more deliberate going forward. a gives american people bigger say in how these trade agreements are designed. all of that is very good. at the end of the day, the new trade representative has assured us that these negotiations will not disrupt exist agreement and
that is vitally important. they're looking to modernize this in a significant way and that is what. whatever that and result should work seamlessly into the existing agreement. if they follow that path and reach these objectives, it's going to be a good agreement and congress will support it. >> we have covered a lot of ground. all under your purview as chairman of ways and means committee. thank you for being on "newsmakers." we back with our reporters, richard rubin and mike debonis. let's begin with health care. the president tweeting on friday, if the senate cannot act on a proposal, they should repeal and replace later. what does it do to the negotiations? >> i think as we heard chairman brady say that is a no go, we
are far down this road of doing a repeal and replace simultaneously. of not onlyalities the politics but also the process that they have already started, it is really not credible to think that they are going to do a 180 on this and do a so-called repeal bill. at the same time, i was struck the chairman was pretty forthright in raise concerns about the direction that senate has had on the tax. he warned that it would be very hard for them to swallow a bill that it did not repeal the affordable care act's taxes. , doest a strong message it mean the house will refuse to pass a bill? he certainly didn't to go that far. we'll see how it plays out.
gretchen: the tax of their considering keeping on what? investment income tax created as part of obamacare and applies only to individuals with income over $200,000 and couples over 250,000. capital gains, interest, dividends if you have a passive stake in a business, all of those kinds of things. say thatrepublicans tax inhibits growth and democrats would point out there is not in a surly a tight link between the 2 and a lot of the benefits of the tax cut goes to the top, not just the people of two 250% discharge of $50,000 but the top 1%. $250,000 what the top 1%. republicans are getting hit for
taking health care from others. obamacare was raising taxes and providing health insurance. repealing obamacare is going to be the reverse of that. and that's the political situation that republicans have found themselves in right now. >> all of this talk about health care matters to somebody like chairman brady because he is waiting in the wings to bring forward tax reform. >> obviously, ways and means has almostrole, and they are there. their raison d'être is tax reform. everyone on that committee is on the committee in some way because they want to be part of tax reform, they want to do that. that's really the entrée of the meal, and for them to perhaps not be able to get past the is a pretty scary thing i think for them.
i think that even if they have to swallow something that they bill -- they're not going to have much choice but to move on with the meal. >> richard rubin, the ways and means chairman is confident you can do this, and the speaker of the house is not backing down off that date, as well as the treasury secretary. if it slips into 2018, what are ?he prospects for tax reform > if you are a republican anner that member facing primary in april, may, or june, you might think a little anderently post holiday it's january, february, and you are trying to vote. same thing for a general election. members get more worried about taking a big vote. on the flip side, if they haven't gotten a lot of , thereby feel a lot of sense of urgency to copper something on taxes,
whether it's the big tax reform the chairman want or whether it is something, they're going to be under a lot of pressure to deliver and they don't want to get hit politically for having done nothing. if we get to october, november, speaker ryan talked about wanting it done for deer hunting season, which is late november in wisconsin. if we get to that point and they are where they are now, which is still in circles and not all on the same page, it's going to be really hard. if they have a train that going down the tracks somewhat by that point late in the year, you could say 2018 as possible. that you get the sense republicans and the different factions are all on the same page when it comes to tax reform? >> no. [laughter] you see it play out now in the budget process. it hasn't been easy for the past several years for republicans to pass a budget, period.
now the stakes are so much higher, because if we don't do that, they can't do a republican only tax reform bill. the next few weeks are super crucial. they're going to have to come to some sort of agreement that sets the table for everything to come , and the fact that it's been so hard it's been pulling teeth really highlights the positions within the party that are really in existential threat to everything the kevin brady and so many other republicans want to accomplish. it's great times for us as reporters to watch it all happen. it may not be quite as fun for chairman brady. we are going to be watching closely. >> our viewers can follow the two of you and your reporting on this. thank you as always for being part of "newsmakers." >> live today at noon eastern,
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