Treasury Secretary Mnuchin on Tax Reform CSPAN November 2, 2017 11:32pm-11:54pm EDT
debate on the proposal and our congressional conical -- chronicle. just go to our website. -- next week, live coverage from healthways and means to many as a mark of the tax bill live on c-span networks. >> treasury secretary steven mnuchin was in los angeles to address the international franchise expo. we will show you his speech at the conference and part of her press conference afterward. secretary mnuchin: it is great to be here at the international franchise association was so many small business leaders. i cannot think of a better place to have this man here in downtown los angeles. visiting thed to various different business
owners after this speech today. this morning, the house ways and means committee released a bill that will genetically cut taxes and reform our tax system. the tax cuts and jobs act is a bold, progrowth bill that will 's tax coder nation since the first time -- for the first time since presently can historic tax reform four years ago. look forwardek, i to visiting the reagan library and speaking there to pay tribute to president reagan and his overhaul of the tax code. our system today publishes small businesses -- punishes small businesses and family-owned companies like franchisees. these are formed as llcs, escorts and partnerships. hard-working, american entrepreneurs are unable to benefit from a lower business
rate, making it more difficult to compete and generate economic growth. the plan just released will change this. we are going to make it easier to start your own business and easier to be your boss. the life of a small business owner today is filled with extensions, itemization's and compex relations. billionstry, we spend of dollars and hours each day repairing for april 15. while some people benefit from this complexity, it is not the hard-working, small business owners that are here today. our goal is to make the system fairer so that all american business can succeed and local communities can thrive along with them. the people in this room are why we need to fix the tax system. we need to make it easier for small businesses and middle income families to succeed in america again.
the only way we can do this and get a raise to american families is by reforming the entire tax code. it has been over 30 years since we last had tax reform in this country. the world has changed. since then, we need to change the tax go to remain competitive. we want to see more made in america. this requires a tax code made for americans. we are proposing for major reforms to the tax code on the personal and business side. the first is tax relief for american families, the second is simplification, eliminating loopholes that make our system complex and unfair. the third is making our business rates competitive again. the fourth is illuminating the incentives that reward off shoring of jobs and keep cash overseas. -- willforms were alone
allow everyone, but especially those in this audience, to benefit on the business and personal side. we want to make a level playing field for our franchisees, domestic manufacturers and family-owned, small businesses that have been forgotten by washington. throughntly passed entities like llcs at a top rate of 39.6%. we are going to lower this rate to 25%. that is the lowest rate for small and medium-sized businesses in over 80 years. [applause] sec. mnuchin: this is money that these companies will reinvest into expanding their business and create better paying jobs and more economic growth for our country. we will do this while ensuring safeguards and says to prevent this from being used to avoid paying taxes.
rate iss business tax not going highest in the developed world, it is far higher than our average economic competitor. 1980 six, when we last passed tax reform, other countries have learned our lesson and reduced their rate. this attracted companies to set up operations overseas, instead of here at home in the united states of america. this should not be a partisan issue. everyone recognizes operating america should be encouraged to not penalize. we are going to reduce the business rate to 20%, this will encourage companies to stay and produce here in america, where we want jobs and better paying jobs. our plan calls for massive investment of capital back into our country. we currently have a system of worldwide taxation and deferral that encourages our companies to leave their profits offshore.
it is not surprising that they are -- that there are literally trillions of dollars sitting offshore. to fix this, we're going to move to a territorial system of taxation like most of our economic competitor's feared this means we will no longer subject american firms to u.s. taxation while they wring their profits home. those trillions of dollars will flow back into the country. when you combine this with rate reductions and repatriations with immediate expenses -- immediate expensing, allowing businesses to write off new ithinery and business costs, will lead to significantly more domestic investment. the effect of these reforms will be higher economic growth. addsditional 1% of growth over $2 trillion to our government revenues to pay down our debt. economic growth is not academic, it needs better paying jobs,
innovative goods and service. it needs economic growth and opportunities for a new generation of americans. our two objectives on the personal side are the simplified tax code and provide a tax to middle-income americans. american people should be able to keep more of their hard-earned money each month. years of stagnant waste -- stagnant wage growth will give way to bigger paychecks increasing labor force participation. we want to make the month of april easier and not a stressful. this is the burden we will do some thing about. our plan will allow most americans to fill out their taxes on a single sheet of paper. this is not just money back in the pockets of american people, it is meaningful time saved. one of the ways we will compass this is by removing special interest loopholes and deductions. we are doubling the standard deduction and under the plan, families will be able to take a
$24,000 deduction. this means the first $24,000 of family income will be tax-free. credit, andly tax family tax credit. it gives a much needed pay raise to american workers and their families. we've been working on developing this plan with house and senate since the beginning of the year, and today is the first day in moving the bill forward. we listen to the american people , and as this move through committee, there will be more input. this is the most important issue , that we passed tax reform and have it to the president's desk this year to sign. this is critical for economic growth, it is critical for jobs, it is critical for our country. i am confident we will get it done. thank you all, it is great to be with you here today. [applause]
>> thank you so much, that is wonderful news. we look forward to being active with the administration. cut moreistration has regulatory burdens than any other administration in the past , and we really appreciate all the hard work that the president and his team are putting in in that regard. i know you are all eager to begin exploring this year's expo. i want to first be in a position to thank mfv productions for their hard work, and their continuous dedication to franchising. andll ask secretary mnuchin our other speakers to join me to help cut the ribbon for the expo, and then we will open up. thank you so much, everyone. [applause]
>> [indiscernible] sec. mnuchin: in the case of the corporate traits, someone pays a dividend rate, as well. the reason of having the split rate is because in the pass-through system, is not subject to the double taxation. another will be continued discussion with the nfip through the process. we are committed to make sure there is, as i said, that for small and medium-size businesses, there is substantial tax reform and cuts. three questions, if i may. the president said yesterday -- that is acode tesco doesn't go through, he will hold you responsible. [indiscernible] is this realistic and you think
it is better for him to hold you responsible when you're not a member of congress? sec. mnuchin: first of all, i'm confident it will be done by christmas. i think we have a fast process. and comfortable with that. i've had the opportunity to work with the president since the campaign on this, and and i am comfortable with him holding me accountable. >> right now, there was almost no margin of error to get this to pass. no democrats are on board. are you confident you can get this through, do you have enough republican foe, and if not, how are you going to get democrats on board? what is up for negotiation? sec. mnuchin: we look for to the process in the house and senate. we have had discussions with many democrats, there has been democrats who have aboard air force one with the president in their state. as i said this morning in my speech, many of these issues are not partisan issues, it is about trading middle income tax cuts
and creating a competitive business system to bring jobs back here. and look forward to some democratic support. >> is there anything not of for negotiation? sec. mnuchin: the 20% business rate, the president has made clear that is where we want to stick. stay within the $1.5 trillion pocket for it to get through budget reconciliation. it does not give you a lot of wiggle room. [indiscernible] no, i am very comfortable with what we have in the budget reconciliation. i think we are comfortable that forave -- the we will pay the 1.5 troy dollars through growth. there is about half $1 billion difference between the baseline and policy. we are very comfortable that we can do this within the reconciliation instructions. we will come back to you. let's let some other people,
then we will come back to. >> just two questions. in california, there are be concerns about the elimination of the data local tax reduction and property taxes. what would you tell people? that is a huge loss and could hit the middle class in california? sec. mnuchin: having lived in california, i am sympathetic come on the other hand, we think the federal government should get out of the business of subsidizing the state. in the ways and means proposal, there is a proposal for part of the real estate taxes will be covered that will cover most of the middle class. we have worked through a lot of examples, new york and new jersey in california, looking at the middle class. we believe it will have tax cuts. with relation to brett ratner, any comment? sec. mnuchin: a massively with the allegations whatsoever.
-- i am not familiar with the allegations whatsoever. >> and no you don't want to comment specifically on the [indiscernible] , but would that impact on getting the plan through? sec. mnuchin: i would say, again, in general, the growth is -- and we have already seen this, we've seen the stock market up a lot in anticipation of economic plans. we see this and regulatory issues, we've had the opportunity to work with the fed so far this year on helping on regulations. we have done a lot at sr -- at fsoc, so i am very comfortable with the process. >> [indiscernible] -- on buyback and dividends. if that is the case, how you get there? sec. mnuchin: who said that? >> [indiscernible] ceo'snuchin: not the
i've spoken to, not the small-business owners. i've spoken to literally hundreds of them and there is a big commitment for jobs and bringing back business to the united dates. -- united states. >> [indiscernible] sec. mnuchin: i do think it is. it is aggressive, let me be clear. it is an aggressive timeline. but i think we have the ability to take input in both committees, and there is a timeline to getting this done. i can take a couple more. >> [indiscernible] sec. mnuchin: no, i'm not making any comments on that. >> there seems to be a section of the bill that is illuminating [indiscernible] is that the case? sec. mnuchin: again, we have
spent a lot of time on the issue of interest deductibility. i think as you know, in the original house gop plan, they had proposed originally eliminating all business deductibility. i think they heard a lot of concerns about that, as did we. i think we have struck the right balance in the current proposal. again, i want to emphasize their will be more discussion on this as we go through the process. i will take two more questions, then we will move on. that is it? i'll give you one follow-up. >> [indiscernible] sec. mnuchin: again, i would just say, we will look forward to the discussion on that. i would say that for most of america and most of the middle class, they are covered with the $500,000 deductions. i think as the president has
said, this is not about tax benefits for rich people, this is really about making business competitive and middle income tax cuts. >> [indiscernible] -- places like new york, california where properties cost more money [indiscernible] sec. mnuchin: we are sensitive to these economies. thank you very much for being here. >> this weekend on american history tv on c-span3, saturday, we are live at 9:30 a.m. eastern at the national world war i museum and memorial in kansas city, missouri, four symposium working the centennial of the u.s. entry into the war in 1917. at 8:00 p.m. on elections in
history, a look at religion and the american revolution. >> washington wrote at the end group ofr to a german calvinists, "the establishment of religious and civil liberty was the motive which induce me to the field of battle. why did i fight? i fought for principal and religious liberty." toat 10:00 p.m., the road the wall, an academy award nominated film about the soviet union and the berlin wall. >> our inns can only be attained overthrow of all existing social conditions. thus, the road begins. 6:00 p.m. on american our fax, see the exhibit for chief justice john marshall at the national constitution center in
philadelphia. >> we have the actual nomination from john adams of marshall, this is the official nomination when he is sending to the senate. in johnhe great moments marshall's career and one of the great moments for our nation. >> american history tv, all weekend, every weekend, only on c-span3. >> join us this weekend for book tv live at the texas book festival in austin. coverage begins saturday at 11:00 a.m. eastern and includes andauthor of "code girls," the author of "thursday night "bunk," and the author of ," the author of "a farewell to and the author of "cuz,"
and the author of "under the "under the code." our coverage start with the author of "white rage," lines," and authors of" violated." the texas book festival, live saturday and sunday on c-span twos book tv. tonight on c-span, we take a look at tax reform and the proposal the republicans released today. we will hear from house speaker paul ryan ane