tv Making Money With Charles Payne FOX Business April 26, 2017 6:00pm-7:01pm EDT
new fox news national poll on the trump administration's first 100 days. it's coming up at 6:00 p.m. eastern time. david: good evening, i'm david asman in for charles payne and you are watching "making money." breaking today, president trump's top economic team unveiling their tax overhaul plan. it includes three tax brackets instead of seven. some people are calling it shocking' it is pretty dramatic. >> dramatic and revolutionary according to steve mnuchin. he says it's the biggest individual and business tax cut in american history. 35% will be the highest tax bracket.
but they are going to eliminate targeted tax breaks that mainly benefit the wealthiest taxpayers. this is state and local taxes and mortgage rate. they are eliminating the state and local income tax deduction but preserve mortgage deductions and charitable gift deductions. >> we will be back with very firm details. we are confident where they are going to be. we just wanted to get out and give you a broad brush overview of where we are. the president 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. >> there have been intense negotiations with capitol hill. these are some of the key players who came out in support of the overall principles of the plan. house speaker paul ryan and
mitch mcconnell. orrelationship hatch and kevin -- orrin hatch and kevin brady. orrin hatch posed the question, is that a good idea? orrin hatch doesn't sounds like he's on board totally. but you would expect criticism from chuck humaner the minority leader in the senate. he said when income distribution is getting worse in america, the president's plan makes it easier for the rich and special interests and harder for the middle class and lower income americans. david: i'm not surprised chuck schumer would say that. but get out from under those trees, they are deadly this time of year.
president obama's tax plan promising big benefits to individuals cutting the top tax rate from 39% to 35%. joining me to discuss all of this, the king's college economics professor brian brenberg and the "wall street journal's" main street economist bill mcgirn. >> if you look at the general theme. lowering the burden and making things simpler. it's a big deal for people struggling out there. david: that's the postcard tax form. this is what apparently you would have to fill out. it's only 15 lines long. you think americans will like that? >> they will like that. and the growth is the most important thing. people are missing.
we know there are a lot of people struggling. it's not just the tax cut, the double of the standard deduction. any time the government wants to let people keep more of what they earn, i'm for it. but if you are struggling you need to grow in the economy. there is no program, not even tax cuts returning your money that will make your life better than the growth that each year is compounded in your paycheck. that's what we haven't had. we have had an anemic 2% average. david: we have had growth after a major tax cut plan before. we had reagan tax cut plan, mnuchin and cohn were talking about that. look at what happened to the growth rate in that year. from 1981 to 1989 we had a couple of slow years. we had a recession in '82 as a
result of what they were doing at the fed. by the wasn't until 1983 that the tax cuts kicked in. at that point the economy grew 4.6%. then 7.3%. >> the reason they care about those growth numbers because they translate into hiring and job creation. americans want better jobs and higher pay. and they like this growth story. you see the president, you see the white house very clearly prioritizing the growth story. the white house is saying we want growth first. we think people will like that. they will get the economy moving and put money back in people's pockets. david: the rates coming down are extraordinary. if you go from seven separate brackets to three brackets. tremendous simplification. you have the end of the death
tax, the end of the amt tax, the minimum tax which catches millions of people. but is it doable? we even madder a republican, orrin hatch who has come out sort of against it. >> taxes is a big deal. it's a hard thing on every one of these propositions, these rates, these cuts. everyone will be -- every one will be contested. some will be trade off against deficit. what kind of spending cuts can you make that's what makes it big. but the orientation is great. i'll say one other word for main street. corporate tax cuts, they ought to be thought as something that helps main street. the republicans shouldn't be afraid of that. when you are overseas you recognize most of these places
with smaller economics that they need investment and they need a competitive tax structure. so instead of shaming a carrier, they will do better they don't go overseas because of the tax rates. and we attract a lot of foreign investment and american cash over there that could go to expanding factories. david: ireland has a 12.5% tax right. >> you ask whether we could pay for the tax cut. a lot of people object to that phrase paying for a tax cut because it's our money. but mnuchin, tour treasury secretary spoke -- our treasury secretary spoke to that. >> we are determined to move this as fast as we can and get this done this year. this will pay for itself with growth, and with reduced
reduction of different deductions, and closing loopholes. david: you believe that? >> it's pretty optimistic. it will pay for some of itself. it's not going to be as big as critics say. but it would take enormous growth in the economy to fully pay for those tax cuts. i think that's self-defeating. the point of cutting taxes is to put more money in people's pockets. nobody is talking about real cuts to spending. david: i think they have given up saying it's impossible to cut spending. brian: i think republicans have an opportunity to say we are going to put money back in your pocket and that will get the economy going. if you want to make a revolutionary reform, do that. david: we have democrats, pelosi and chuck schumer, the head of
the democrats in the senate saying this is all about the rich. donald trump will benefit by getting rid of the amt. but there is another factor we had a petri dish that was the reagan tax cuts. under ronald ray began the rich did well. they were up 12.2%. but the poorest 20% increased 12%. their real income under president reagan. so you will party. a rising tide helps all boats. bill: the opposite to those numbers when you don't have relief, all the gains go the the very top. so they were probably say thes exact same thing when reagan was proposing these cuts years ago. nothing has changed and they haven't learned. david: when you have inventives in a free market economy,
incentives by -- incentives in a free market economy. you have the middle class becoming rich. that's the essence of what makes our economy of so dynamic. you want to increase mobility and dynamism. critics will call this trickle-down economics. that's wrong. when companies have more money in their pockets they invest sit in more factories and invest it in workers. dav -- david: individuals will work harder if they think the payoff at the ends of the day is greater. bill: i have a friend whose husband owns a small business in connecticut. the nightmares they go through filling out tax forms and healthcare for a small entrepreneurial business it's staggering what they have to go through.
they don't have the luxury of being able to move to florida or texas or something like that. their customers are all there. this could be liberating for these people. dave there are trickle-down. that always intrigued me. when you increase the incentives for people to work harder and get more of what they earn for the work they put into it. i wonder if there was enough of a cut at the top individual rate. but say 39 1/2 down to 35. that's not a huge jump. it's note as big a jump you get in the corporate rate deduction. >> the corp frat rate and business texass. david: on the campaign trail he said 28%, then he said 23%. >> at some point politics comes into play here. the republicans want to be able
to sell this as mainstream. the top rate comes to symbolize the richest of americans. they are trying to get the most bang for the buck. that's the investment that's going to get to the average person. david: the tax bill ronald reagan passed, he did the with the help of a lot of democrats. they controlled congress by a big majority back then. bill: we'll see, you have a democratic party that has no answer but resist. i don't think it's good for the democratic party. but we shouldn't write people off before we have appealed to them in some way. david: say they are appealed to and the democrats reject it and say no way. will the republicans do it with a simple majority? >> i hope so. i think they have to. i think president trump realizes one of the benefits of this
press conference today, rater than on healthcare, they want this. they want this achievement. they note economy needs a boost like this. we had a boost from the deregulatory efforts and the executive actions the president can take. but it needs more than that. and it needs this. david: we note president's tax plan, but will congress be able to pass it? we'll talk about the biggest potential hurdles with brian babbitt, he's next.
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but now comes the hard part. can all the fax of congress help drain the swamp? here is white house national economic council director gary cohn on that earlier today. >> president trump made tax reform a priority, and we have a republican congress that wants to get it done. this is something that quite honestly i hope the democrats would support, too, because it's good for the american people. david: joining me from washington is mercedes schlapp to give us details on how this will be done. what are the chances of this thing passing as we heard it today? 50%? 80%? what? >> i don't want to give a percentage yet. these are broad principles on tax reform. they are guide posts. so this allows the beginning of
the negotiation process with the fellow republicans. obviously we know the republicans want to take their time on tax reform. we heard the ranking member of the tax committee basically saying this could take up to a year. i'm anxious to see them move quickly on tax reform legislation. but there are sticking point. the 15% corporate tax rate is a very harp cut. the cup ran plan in congress, they were looking at more of a 20% corporate tax rate. so there are fundamental differences between what the trump administration released today and where republicans are. the other question as well is, is this revenue neutral? republicans do not want to increase the deficit. and that seems to be another sticking point we are looking at.
david: some of the lobbyists against it, i was amazed at the speed. it had just been announced and the real toarts of america came out against it. first of all, gary cohn and steve mnuchin were clear that your mortgage deductions were going to be allowed. my impression was these lobbyists had such a knee jerk reaction to any fundamental change that they didn't bother to read the thing. >> that's a good point. the way the trump administration presented it is a simplification of the tax code. you are looking at the fact that you are going from 7 individual tax brackets to 3 tax brackets. but the winning points will be the corporate tax cuts as well as the repatriation. that's a big sell in term of being able to bring back $2
billion of money we know is overseas. so i think that there is an opportunity here for you can have these even if it's not necessarily a comprehensive tax reform bill. but you can win upon smaller issues and push forward a piece meal approach if that comprehensive tax bill gets more complicated. david: angela mcgowan, you have worked as a lobbyist. how do the lobbyists try -- assuming a lot of them are against this -- >> you cultivate the marketplace to find out what's out there, then you build coalitions. so they knew this a long time ago. but this is just the beginning process of this. these are proposals. i used to work on the ways and means committee.
krat with america. this has to go through the committee process. then we have to vote on it. then it goes to the senate, then it goes to conference. all we are talking about now is great. but i love the fact that happy days are here again. you know the saying money is power, the more money the government has, the more power it has over you. david: and we are trying to drain some of that money. >> the money is there. we just need to find it like to newt gingrich did. david: i'm afraid we have to leave it at that. but angela you will be coming back with us. ladies we'll be talking about the biggest potential hurdles with a key lawmaker brian babbitt. he's coming up next.
david: so with president trump's tax plan revealed, what is next. let's bring in person congressman brian babin. from what you heard of the plan, what do you like and what do you not like? >> i was a yes on this plan about three weeks ago. i got a personal phone call and met privately with the president and vice president. i got to yes. quite frankly, i have great optimism. i have been working hard the last couple weeks trying to get both sides of this issue together. i'm very optimistic that we are going to get something done. david: you knew three weeks ago the plan was to cut the corporate rates down to 15% and have three rates for individuals? >> i thought you were talking about healthcare. david: no, i'm talking about the tax plan.
>> i apologize. i'm on board with this tax plan. i think that our tax code is way too complex, 70,000 pages. any time we can get the tax rate down for the job creators and businesses and individuals, we need to do that. i'm all for this plan. now. david: we already heard some naysayers. senator orrin hatch when he heard about the reduction of the corporate thanks down to 15 per are said, gee, i wonder how we are going to pay for that. are there any parts of it you dislike? >> this one reason why we need to pass this health reform. we knead hundreds of billions of dollars it of obamacare when we repeal it to plow back into this tax reform act. the key to all of our problems is growth.
we have been suffering under 1% growth for many years under president trump's socialist left-wing agenda. and i think we have an opportunity here to get 3%, 4% growth. and that will be an answer to a lot of our problems. if we reduce that tax down to 15%, i believe we'll see some of this growth. we'll see a burgeoning of our economy. david: now the:freedom caucus of which you used to be a member is in favor of it. you 134reu9 from the freedom caucus when you opposed the healthcare plan. did you have anything to do with getting them on board plan now? >> i thought you were talking about healthcare, i have been working to get both sides together, and i think we have been successful. i have many, many friends still in the freedom caucus.
stiff conservative friends who are not in the freedom caucus. when president trump came to office, we had to try to stop his socialist agenda. i thought the freedom caucus was a great place to do that. now we have the opportunity of a lifetime with president trump in there and his conservative agenda. so we must make the best use our opportunity and i felt like this was something we needed to do. >> so you and others got freedom caucus on board with healthcare, and that's a huge step forward. but i'm wondering if you will have the same problems with texas cuts you did with healthcare. or whether you will march in lock step towards tax reform. >> let me putt is this way. we are republicans and conservative republicans. we don't march in lock step with anybody. we are up here to represent our 700,000 constituents to move this country in a different direction.
but i'm totally in favorite agenda president trump ran upon, i worked hard for him and i'm looking forward to moving this agenda forward, and tax cuts is the next step after we get through with healthcare. then we move on to regulatory reform and we'll see a country where the economy will catch on fire. david: you just got a standing ovation. that was somebody else who received that standing ovation. but we appreciate you coming in, congressman. thanks for being here. mounting threats being exchanged across the pacific as the white house briefs the entire u.s. senate on what's happening there. what will our next move can in north korea? that's coming next.
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death defying struggle against u.s. imperialists. >> a lot of that you can dismiss. they don't have the power to do with their nukes what we could do with ours, but the president is concerned about what they are doing. how crazy their leader is. why need for a special meeting with all members of u.s. senate. >> i think he wanted to put it on the table, tell them all we know in hopes perhaps some will leak out, keep pressure on the chinese to let them know we're serious. the can has been kicked as far down the road as it is going to go. and everyone better get serious. looking at state-run chinese newspaper, they put out an editorial said that if north korea, the game of chicken is coming to a head, and if north
koreans do a 6th nuclear test, it is well past the point of no return. david: i was wondering if in fact administration was errorring on side of caution in case they had to do something, not as dramatic as syria strike. but something that congress particularly democrats, could say, well why weren't we informed. this is a fail safe to make sure they have the base of knowledge about the threat of north korea. >> that is right. you heard from the defense department, from direct or of national intelligence of national security council, and state department, presenting you know a whole of government approach. and you know a lot is focusing, rightly, on north korea's growing ability to strike the united states with a intercontinental ballistic missile, that will take time, but my worry is it will be easier for north korea technologically to strike japan and south korea.
we have mutual defense treaties with both countries signed in the '50s. are we laying ground work for u.s. to enter a shooting war in defense of our allies. and to use every tool we have in our cool kit, cyber, covert, additional sanctions before that point. david: there is a big tool that is the missiles that we have. we just let off a missile that traveled 4,000 miles from u.s. territory hit a target in the pacific. that is a clear message to the north koreans. but you wonder, whether the messages are resonating with the gay i guy in charge there. >> i don't think that kim jong-un really cares about us popping off a test icbm, i think he is pretty well understands the fact that united states would not go nuclear against north korea. unless they started it, even then, with conventional forces
we could pound them into be o obama livian. the threat is the -- b oblivion. things kickoff, if they do, i am afraid they will kickoff on a hair trigger. >> you know, colonel there is one thing they am optimistic about, i feel good, this administration finally, is willing to say we want the regime to change, not just we want to put them in a submissive mode or anything something. we sort of like when ronald reagan said, i want to win the cold war, this administration want want to end that crazy regime that caused so much harm and death to thousands of people over there. and maybe, could cause death to people here. i am con encouraged by that. >> i am in a sudden they put military option on the table this administration, i think that world believes this trump
administration means it. that is what we need, and which needed to hear that the era of strateg strategic patience where we sit passively on the sidelines is over. i think that chinese are and will take their own action to either whether chinese regime change or other action before that gets to a military head. david: i think colonel and captain thank you very much. >> all right. david: major averages tumbling after earlier gains to end the day in the red, i'll tell you why this happened coming up. dva. fidelity, where smarter investors will always be.
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david: stocks turning negative after trump administration unveiled the ta tax plan. joining me to discuss this fiscal times columnist, liz peak. >> i think the old adage, buy on the rumor sell on news, once plan was actually out their. it is ab an exciting plan, then every takes pot shots at it. news headline is full of this person doesn't think it can work. now hard work begins. in my view, this is the biggest challenge for donald trump as president to date. he has to sell this to the american people. because guess what? democrats are going to resist. some in republican party will, because you know estimates of what kind of bump you get in deficit are significant.
david: is resistance and the emergences of that recess stenresistants did that lead too market concerns, first they were ecstatic. >> it threw cold water on almost wonderful estimates of how much increase growth would look like. the market is not cheap, everyone knows that. most promising thing thattest meets for earning growth have gone up 8 weeks in a row. there are many signs that global growth has begun to accelerate. thanks becauseh in large part to some recovery in china. the growth in earning in united states is not being fed by corporate stock buybacks it is earnings growth, that is a big deal. because we have seen a lot of reasons why the stock market has gone higher, stock buybacks, fed lowering
interest rates and et cetera. this looks like the economy is moving. in part, it is moving because donald trump was elected president about 2 weeks later, imf raised global growth rates, they have done it again in last two weeks because of consumer optimism. david: a pro-business administration in power. >> right. david: a lot of people buy indexes on basis of whether there will be real tax reform. we learned tonight, by talking to experts before you, this is going to take a long time, going through committees and lobbyists. should we wait for the actual -- do you think there will be a pullback in the market because it will take so long to get it through? then gets into the market. >> it would not be surprising, as you have probably discusses interim measures, there will be a fight over healthcare and the budget.
not easy. but, when mnuchin said it will be done by year end or first quarter the latest, i think we talked about that, you know that looks promising to me. david: leave it on a promising note, liz pee k thank you. >> trunk calls for private sector to boost infrastructure, ho sea of -- sttst. louis can make it a lealety, next. just like the people
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st. louis for privatization for city owned airport. it would be second in united states to do so. joining me now travis brown. president of rowe, missouri. you are almost there. >> so far, so good. david: how long have you been working on this? >> several months, most cities with substantial infrastructure, like an airport, most cities don't have resources to make the fieldings, preliminary approvals with the faa . david: you started this, it should be said before trump was president. to get somebody as president, a lot of people didn't think he would make it, but who talks about what you are doing, must just make your day? >> you are correct. joint economic speech, it was clear his goal over a trillion
of public and private capital. i emphasis public and private. this is a current federal program. no votes need be taken in congress to use current faa, airport pilot privatization program. st. louis would stand to gain a lot. david: not all privatization of airport stuff has worked out. you had one in chicago, midway, i. remember. midway is smaller, they had financing problem. >> timing in their marketplace is a collapse, lehman brothers is a major factor. david: lehman brothers was tied up in the financing part, and lehman brothers collapsed their the project collapsed. >> yes. but chicago midway and st. louis have, are dominant airline like southwest, they negotiated a deal.
david: how soon before lambert, your airport, before it is a private outfit. >> we have a lot of steps in our local approval process, we have to talk to your airline community, and a two-stage bid process. we're eager to make this a elite project. david: as president or someone from his team reached out to you. >> we had good comments from the dot and the white house. we'll get up next one to two years, by this is a perfect example of what you can do with current law. david: air traffic controllers, talking about privatizing that as well. are you going to have a private air traffic controller system there. >> we don't know.
we'll be part of it, we're a major hub in spoke, air traffic control system. but, for sure there is a lot of changes in transportation policy. and grid that we share. david: congratulations, travis brown you must be a happy man. >> so far so good. david: coming up sanctuary city showdown. showing no signs of stopping, president trump takes on the court of system that stands in his way.
pablo and angela are here. tammy, to you, what do you think of judge's order, blocking the executive order? >> well, look. we've seen a lot of efforts to slowdown what the president wants to do. we have known for decade, activism, and nature of judiciary, they are just lawyers in robes. in this case have you an individual, a bundler for obama. david: the judge in san francisco? >> yes. and so you -- i think we're not surprised by this. at the same time this is the kind of activism that the left is now engaging in. this is good, because president trump is moving quickly, the issues have moved up quickly, they are going to supreme court. david: now a full supreme court. >> he will prevail. david: pablo, jonathan turley had a piece, he is not a conservative right winger, he
had a piece saying that judge is wrong, he is too earlier. cities have not had a chance to prove they have been agrieved. not indicated how it will adjust or deny federal grant, did he jump the gun on this? >> no, he didn't. i mean, the thing is, sanctuary cities are a response by compassion state and local officials. -- two things break down there. one, the ruling of law and order, undocumented population is not going to report crimes to police if they have this risk attached on their civic duty. >> i can back up what you say. rarely do i back up.
2008, i was mugged in los angeles, mercedes and range rovers went by, nobody helped my, an undocumented worker, came he got the thugs off me and took me to safety, he could not do a police report, i don't know his name, because they have to live in a shadow. david: nobody is denying that a lot of the un undocumented workers are decent find people, but some are felons, and sanctuary cities have not been cooperating as they should to get bad guys behind bars. >> we need to do, not rocket science, if we can put a man on the moon, these are people. we're looking at forest not trees. >> is an carr is -- >> are sanctuary cities the answer. >> no. we need to get mayor and government in line. >> we agree. this is about federal law, about nature of law and order, and what will keep people in the sanctuary cities actually
safe, the people harmed the most are those in legal immigrant communities. david: pablo, where i would agree with you and angella, our immigration system is zhu screwed up. why not focus on immigration service fix it. >> we can't do that right now, putting the job of immigration and custom enforcement on local sheriff. the big victim we don't talk about are local law enforcement officials who want to keep their cume community safe. they house them in jail, and i.c.e. does not foot the bill for that. >> criminal illegal aliens. >> we're paying for those. >> they are criminals, if they are in the jail. they are not regular law abiding, undocumented workers, let's make it clear.
>> not true. david: quickly, is it going to supreme court? >> i don't think so. i think 9th circuit will up hold it. >> charles is back tomorrow night to put order who this, lou dobbs is next, thank you for watching. lou: good ev evening. president trump taking lead on tax reform, proposing a massive overhaul that would slash rates for nearly all americans and stimulate economic growth. treasury secretary steve mnuchin and gary cohn . introduce the plan to the media. taking tax brackets from seven to three. and proposes cutting corporate