tv Bulls Bears FOX Business November 20, 2016 2:00am-2:31am EST
theirs is war story that deserves to be told. i'm oliver north. good night. grateful on thanksgiving. ateful on >> thank you for being here. log on for the after "the o'reilly factor." it's great to be here. president-elect trump ramping up his team and plan for the white house and putting taxes at the top of his agenda to ramp up our economy. some here say that should mean slashing individual and corporate taxes at the same time to get the biggest bang for his cuts. hi everybody. i'm in for brenda butner. this is bulls and bears. they are back. gary, john along with hadley heath manning and jessica, welcome to everybody. actually missed you guys. gary b., should the president-elect slash both corporate and individual taxes
at the same time? >> dagan, it should be number one priority. look, on the corporate tax side we have as we've talked about many times in the past third highest corporate tax rate in the world. people wonder why are companies like apple and et cetera keeping so much money offseas? because we have a high corporate tax rate. bring it over, lower the corporate tax rate, bring that money over here it would be better spent. on the personal side my issue is always been about fairness. if you think the government should get more money, even the money they get, you're basically saying the government can spend it better than you and i. but in a gallup poll the average american thinks that the government wastes 50% of the dollars they have out there. look, we can go through department by department whether it's the defense department, social security, medicaid, medicare, any one of those departments wastes billions of dollars a year on fraud. let the individual keep their money and better spend it rather
than on the solyndras and on the amtraks and all the other silly government projects out there. we can spend a better -- we can stimulate the economy. not the government. >> anne hadley, if you cut individual taxes in addition to corporate taxes, that flows to small corporations, small companies who are taxed at those very individual rates. >> that's right. let's not forget a lot of small businesses do file under that personal income tax code. and small businesses are an important part of our economic engine, we need that creation, we need economic growth across the board. i agree the corporate rate which is higher than just about any other developed country in the world and individual income tax rate across the board for wealthy and middle class americans we need to see decreases in those rates. >> and, john, you would agree we do need to do something. you look at the average annual growth under president obama below 2%. >> yeah. look at the growth last time this was reformed was the tax reform act of 1986 under president reagan.
you had gdp over 3%. they slashed the corporate tax rate the highest in history until this happens under president-elect trump what he's talking about will be the highest at this point. growth went to 4.2% within two years, an incredible growth rate. i think you'll see much of the same thing right now specifically on small business. when you talk about small business, talking about the pass through income doing something with that specifically because that is on individual tax rate at 39.6%. you're talking about taking that down to 15%. you give the average small business 20% to 25% more out of each dollar they make that goes straight to employees and capital investment because they have breathing room for the first time. talk about the overall corporate tax rate, the reason companies are offshoring in ireland and going through this complicated double dutch system that they do is because the corporate tax rate at 12%. if you take it to 15 as president-elect trump is saying, there's lessin centives for companies to offshore to begin with.
you will see a lot of those corporate profits come back. >> jess, what i not do both? why not do corporate and individual and just tackle it to quote president obama in reference to president trump, what did obama say? i won. well, not only did donald trump win, but the republicans won. >> you've got it all. >> so why not use your political capital? >> well, i think they should, but he's going to have four years of this, right? well, i guess two years. we'll see what happens in 2018. i wanted to bring up what steve morse side who is an economic advisor to donald trump. he talks about how we should actually pace through this and do the corporate tax cut first and then go to personal income taxes because he was talking about the $2.6 trillion that's going to be repay traited to the u.s. and donald trump will only tax that at i believe 10%. we'll get that money back and that will be a sweetener for democrats who can use the money for infrastructure. >> to spend. >> we need something. i need a highlight here. you have a republican president who's more into infrastructure spendsing than any of the other
democrats. >> fair enough. >> that was steve moore's argument for pacing it out. i think that's a good idea, but yes, i think president trump should go for it. if he can. i just think that we need to work both sides here. i know we're in the minority, but it is important to keep some democrat friends. >> why not do both? >> why not do all three? cut the federal gas going to g. have a good time on the way. there's a big difference between the reagan administration and the second bush administration and the percentage of debt-to-gdp was a lot lower. we have major problems, the tax code, this would be a great opportunity to finally klein it up and get rid of the nonsense that exists when you have artificially high rates ask all that complexity going. but as far as actually lowering what we pay, corporate -- look, i wish we had no corporate taxes. double taxation system anyway. but the reality is we're already running huge deficits with that tax rate. by the way, the top 50 corporations pay about 25%. it's really effectively not that high. and that's because of all the
nonsense. if they could lower the rate, remove the garbage personal and corporate, but you can't stop the amount of money the treasury's getting right now. this is going to cause a major problem. we already saw with interest rates going up in recent weeks, it's going to happen which is going to hurt consumers. >> which gary b. could be just because of the growth and the growth that tax cuts would bring and the growth that would lead to maybe finally a little bit of healthy inflation. >> well, let's avoid the health. i never think inflation by itself is healthy. >> the tax cuts are. >> results from more demand, that's good. but can we see growth that these tax cuts will spur? absolutely. look, here's the reason, the individual spends more efficiently and more effectively than the government does. when i spend a dollar, if it's wasteful spending on a company that goes out of business, well, then the company goes out of business and i wasted my dollar. we give that dollar to the government, there's never a project that goes bad, it's
always ask for more. i guarantee there's going to be more solyndras. by the way, this infrastructure spending trump says i totally disagree. that's a boondoggle right there. don't think i'm all he's got the greatest idea in the world. i just think the government spends it inefficiently. let me give an example, when you give a dollar to charity, local united way, they spend about 70 cents of the dollar on good stuff. when you give that same dollar to the government, they spend about 30 cents because the other 70 cents is spent on bureaucracy. that's just a clear example of how wasteful and inefficient government is. >> that's all well and good, but we're also forgetting the donald trump tax plan has been appraised at adding $5.3 trillion to the debt. >> if we keep things the same. why can't we cut things like social security? >> oh, because guess what, donald trump's voters who are older don't want that anyway. and he promised that he wouldn't touch entitlements, which is another wonderful liberal point to donald trump.
>> the problem right now is not revenue. we're at 19% of gdp plus, that is at a historic high for taxes. that is about all the economy can take by nearly every economics out there that is surveyed on this. and we still have -- are spending a lot more than we bring in. $2.1 trillion when president obama came into office to $3.3 trillion right now we're bringing in and we're still spending half a trillion more. the fact that these goofs in d.c. can't balance a budget has nothing to do with tax policy. that is a separate issue. and the corporate tax rate to say that the average big company pays 25%, look, this is why this never gets changed. the small businesses are the ones that are paying 40% because they're paying this tax passthrough rate. they're the ones that need the tax break, not the big companies right now. they're saying effective tax rate, that's because big companies have bought off politicians and small companies have not. they're the ones that create jobs. >> and, hadley, i look at this tax code that is north of 74,000 pages at this point.
and i always think that it sticks it to the people who cannot afford it. it sticks it to small business owners. and it sticks it to individuals by complicating something that they can't get their arms around. >> that's right. the cost of paying taxes isn't just the check that we send into uncle sam. the cost of paying taxes in the united states is following the tax code, complying with the tax code an enormous amount of time and resources americans spend on hiring other people to do their taxes or buying that software every year we have to file our taxes. absolutely. i hope we clean up the tax code, lower rates and simplify it so an ordinary person can understand their tax bill. and in terms of debt and deficit spending, absolutely that's bad. bad when democrats do it, bad when republicans do it and we'll have to stick to our guns if we believe in limited government. >> thanks, guys. cavuto coming up. >> students leave school to protest and schools letting them do it. is it time to get back to class
and back to reality? plus, saudi arabia warning president-elect trump be very careful what you say about us, we got the oil. and we got you. do they? we'll see at the bottom of the hour. >> oh, we will, neil, thank you, we can't wait. but up here first, this democratic congresswoman saying she's appalled by wall street's rally. since president-elect trump's victory. someone here asking why is the someone here asking why is the trump rally bad but rallies
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prann. now back to "bulls & bears." i'm appalled that the reaction on wall street to choose this election is record highs for bank stocks as the industry rallies on the news of a massive destabilizing lawless agenda. but let me be clear, short-lived increases in the stock market are not the same as real, hard earned economic growth. and the demise of the regulations that wall street is
cheering are the very regulations that have made our consumers, investors and economy safer and more resilient. >> this is the market reaction that she was talking about. stocks off to the races since president-elect trump's victory. john, stocks hit record highs under president obama, but it wasn't appalling then, now was it? >> no, it wasn't. is this the same maxine waters took $12 million of t.a.r.p. money and put into a bank she somehow forgot she had a financial stake in? same one? she's later cleared on the ethics probe. but her talking about regulation is like jesse james saying don't worry about it, i'll watch the wells fargo car on the railroad, no problem at all. glass/steagall never should have been repealed under clinton, dodd/frank did nothing to deal with what actually caused the problem. the banks are rallying because elizabeth warren is not going to come into power and go after the
big evil business. >> hadley, i always look at it like democrats very often see any kind of prosperity for people or becoming wealthy as, well, appalling. >> you can take any number of economic indicators and tell a completely different story about the economy. that's what we've seen happening from talking heads like those of us on this show. we can cherry pick different data points, but the reality is americans are having vastly different experiences. this is a bifurcated economy where some people are doing okay and oh people are still struggling, other people are out of work and part of that record low labor force participation rate that we complain about often. but if we want to do something about that, then i agree we need long-term pro-growth policies. and that's going to do better for our economy for economic growth and for markets than any short-term rally. so let's focus on the long-term picture here. it's going to be better if we can enact some of these pro-growth reforms. >> gary b., i know you're appalled by this rally. >> it's horrible. i refuse to participate.
as a trader i'm going to sit on the sidelines and let the stocks go. but look, j.p. morgan went up 127%, during the same time the market went up 150%. so ms. waters is incorrect saying this is all just a trump rally. second of all, hadley talked about a pro-growth environment. i 100% agree. i think the best way to do that is once again let the market dictate. i think there should be fewer regulations in the financial industry. in fact, during the financial crisis that we had back in 2008 i would have been happy if hundreds of banks had gone out of business. that's the way it works. instead, we stepped in as a government to protect them and let the ones that were too big to not fail, we didn't let them fail. we're getting back to that same point now. we'll probably have some other crisis. i'd say let the next whatever it is, citi bank, bank of america, fail, that's called creative
destruction. that's what we're working against. >> the democrats are bugged by the rally in the financial stocks, the rally in the energy stocks, those are two industries they hate unless they're getting political contributions. >> they were briefly in the cycle after the futures tanked -- >> then everyone fighting. >> it turned around. >> i was like finally some good -- >> i know you had about eight minutes in after market trade. bottom line financials as a sector have done lousy compared to other sectors, obama has and other people have hurt that sector. >> not since the election. >> the health care sector, which has benefitted hugely from obamacare from mandating people get health insurance, that is a huge market difference based on regulatory environments. one is sending money one and one is taking and closing rolls. so that unwind is going to hurt certain health care stocks. helped biotechs because clinton not limiting the price they're going to charge on drugs. but in general less regulation is good for these stocks. >> i know you were not rooting for a market collapse --
>> like 20 minutes of it. it was a terrible night. same thing after brexit there was a tank and then it came back. yes, the market will always regulate, but i understand concerns over what donald trump has talked about in terms of getting rid of dodd/frank and how he's going to be deregulating. and this is a bipartisan issue. this isn't just democrats who were upset about this. people across the aisle were concerned about making sure that wall street was reigned in. i think that's what -- >> how about let's all join hands and celebrate optimism in the stock market at least in the last almost two weeks, guys. thank you. >> don't jinx it. >> eric, what do you have coming up? >> officials refusing to cooperate with president-elect trump on deportation of criminals. can they kiss their federal funding good-bye? plus, democrats blaming hillary clinton's election loss on everything but their own policies. are they serious? we'll see you at 11:30. >> thanks, eric.
president-elect trump busy working on more cabinet picks this weekend. he's tapping republican senator jeff sessions for attorney general. those close to him say his priority will be hunting terrorists in the u.s. and, hadley, you say that is a good sign for all of us. >> absolutely. we can't allow political correctness to come ahead of our
national security. and that's part of the reason trump was elected because he ran against political correctness. on the one hand we have to avoid stereotyping people based on the country they come from or the faith they practice, but we have to be honest about the threats at home and go after them. >> jess. >> i think hadley's right on point. no more talk of muslim regist registries or banning muslims, everyone the 34-country ban floated, so we need to be fair about it. but, yes, of course i want to do everything possible to get rid of the terrorists and get democrats elected again in 2018 and 2020. >> but gary b., it goes to the point we had a president, president obama, who refused to identify the enemy as radical islamic terrorists. >> there needs to be two changes. one, jess needs to come out and just say she's now a republican. applying for jobs now on k street. >> i used to like you so much, gary. >> the other thing is we're fighng world war 3 right now.
it's an unconventional war, new war, terrorist war, that should be trump's priority. >> jonas. >> the speak was p.c. but the drone strikes were targeting terrorists. one of the longest websites i've seen justice.gov and look at accomplishments under attorney general eric holder terrorist thing, it's like thousands of people they were throwing in jail. bottom line is just talking tough in itself doesn't mean you are acting tough or weren't acting tough but talking tough. and this law and order stuff can get expensive both with long prison sentences, it's a problem we have. i think that's the one direction trump's going to be expennive. >> the problem is also on our shores, john. >> i agree. i have some problems with jeff sessions and his alleged views, but whoever it is political correctness has hamstrung us. we have to not infringe on people's rights but we have to be able to go after these guys. thanks, guys, thank you so much to hadley and jess for joining us. great to see both you ladies. coming up, mr. trump at his famous new jersey golf club this
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watch us grow. my name is sydni and i'm your dividend. predictions. gary b., go. >> you know what's going to be huge under trump? golf. he's going to be the best and biggest golfer in the presidency. i think golf the stock g-l-f is up 100% by the end of his term. >> golf and jobs in china are not coming back any time soon. >> john, your prediction. >> gary's a scratch golfer, of course he chose that. forget the ford-trump brouhaha. ford up 20% in a year i like it. >> gary, do you own it? >> it's at 12, i'd buy at 9. >> strikes brewing at busy o'hare airport right in time for the holidays. guess who doesn't matter?
southwest airlines have midway in chicago. up 20%. >> john, you like it? >> no. i can't even understand him. 't't't't't't't't't't't't't't't' don't think. thank you, guys. cost of freedom next. president-elect trump is in and now schools are letting kids walk out, middle school, high school, college, you name it, young people skipping class to protest america's next president. but is this exercise in free speech really the best lesson to teach? hi everyone. glad you're back. i'm glad i'm back with you as well. i'm neil cavuto. joining me today all my buddies, ben stein, charles payne, and you know that guy, charlie -- dagan just doing a great job on