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tv   The Intelligence Report With Trish Regan  FOX Business  September 27, 2017 2:00pm-3:00pm EDT

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neil: letting you know again, charlie gasparino protect this, major league baseball owners unanimously approved derek jeter's bid for the miami marlins. he was working with a well-healed group to do so and apparently he gotç it. derek jeter will be a team owner. trish regan, to you. trish: thank you, neil cavuto. possible changes to the tax code for your benefit this year. top republican lawmakers will reveal their plan which president trump says it will be fair, simple and help the middle class. i will tell you this. it is time to stop redistribution of wealth, give it back to hard-working americans that earned that money in the first place. i'm trish regan. welcome, everybody, to "the intelligence report." the obam[ationni believes you can tax your way to prosperity. government needs more more any? take more small business owners and individuals who earned it.
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the left still thinks they can take money from hard-working citizens. tax cuts don't need to be a partisan issue. we had tax cuts in the 1960s. economy grew 6%. ronald reagan did it in the '80s. guessç what happened? the economy grew 4%. the numbers do not lie. in just a few minutes, freedom caucus member ron desantis and cke former ceo, andy puzder will join us. first we have a blake burman. reporter: he defended his plan, it does very well benefit of people of wealth. first on individual side. there will be according to thisç proposal three different tax brackets, that, 12, 25, 35%. calls for standard deduction to be doubled while ending the
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death tax and the amt. on the corporate side, two different rates there. one for smaller businesses, a top end rate on small business side of up to 25%. for corporations, a rate of 20%. now as you know, president trump campaigned on a 15% corporate rate. now that number has crept up to 20. one thing is very clear around this white house, and in hearing from the president momentsç ag, that 20% number is a red line something he views as non-negotiable. >> very much a red line. in fact -- >> what about 15%? >> i wanted to start at 15 so we got 20. 15 was so low we didn't take in the revenue. but i wanted 15. so we got 20. 20 is my number. i'm not negotiating that number. reporter: trish, believe it or not the white house believes they can get some democratic buy-in atç least on philosophy, ideals of this proposal. however earlier today senate
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minority leader chuck schumer assailed this plan. >> it's a trillion dollar tax break for the wealthiest. middle class people can't take advantage of this. reporter: schumer said this not for the middle class this is the arguement coming out of the white house, trish. under this proposal, if you're a family of four makes $100,000, take the standard deduction, @s would be $1000 less than under the current code. even we did mention on individual side there are three rates, three different rates, there is a possibility within this framework as well, trish, to add a forth rate, something above that 35% level, that would go for in and around the top 1% wealthiest of earners. trish? trish: you know what they're trying to do? they are trying to politically sell this. dealing with chuck assumers of the world. okay if you're making x millions of dollars we'll cut your taxes,
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blake,ç right? reporter: part of the argument even though this will be a tax decrease from the top end rate which democrats say they don't want, by the time you take away state and local deduction tax, many of those high income states, they argue that potentially that 1% could actually end up paying more. the question whether or not that translates to streets and -- to votes and people buying into that. trish: blake burman, thank you very much. i will go back to this americans s$uld not be penalized for income. there is different having a lot of income and having a lot of wealth. why do we want to penalize prosperity? why do we want to stick it to anyone who is willing to work a little bit harder? florida congressman, freedom caucus founding member, ron desantis joining me right now. and, congressman, what blake mentioned there is a very interesting thing both politically and economically, right? the white house potentially is
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putting forward 35%, maybe higher, on topç earners but alo talking about potentially removing deductions that you would pay, say at the local and at the state level. i know for you guys in florida that doesn't mean much, because you got a pretty good tax structure there for individuals but in places like new york and california, and some of these blue states, basically, people might wind up paying a whole lot more. in other words, the federal government is saying we're not going to subsidize these states anymore. >> that would make it be smart for people in those states to gç to their legislatures and say look, the party's over. you will not keep fleecing taxpayers. we're not going to incentivize you to do that at the federal level. maybe you should look out for interest of tax payers in your state, instead of always looking at the interest of government and government interests in your state but i think the overall issue here is, even if you have a top rate of 35 and you remove some of the dedubses, there
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hasn't been determined when that income will hit. so right now, the top tax rate hits at about 400some odd thousand dollars. everything i heard if there is a top rate in that area, that it is not going to attach until people are making seven figures. so you're going to have a lot of people in high-taxed states, particularly dual income households, who were making four or $500,000 a year and in places in my district that would be a lot of money but with how much you're taxed in high tax states, you would be better off with that. so we'll get more details. trish: we do need more details. you will never convince me for tippy-topç 1% earners anybody should be paying more tax. i want it to go the other way for everybody. specifically for the middle class, congressman, i talk a lot on this show the hourglass economy. i fear in today's society, people on top, they will always do just fine, they have the money. the people on the bottom obama
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made sure they were taken care of. they have lots of handouts that make it easier for them but it is the people in the middle, don't have a ton of money, don't have handouts and can't get those handouts that are reallyç suffering. isn't that who we need to help with the tax policy? >> without question. you can do it a number of different ways, which i think this plan will do. one, you're lowering the rate, they can keep more of their money. two, you're making the tax code much simpler so they fill out their tax returns on a postcard. they don't have to hire a accountant or lawyer to do it. many americans in the middle income brackets do have to do that, no one understands the tax code. the third thing i say, making the business tax structure with the competitive with the rest of the world, allowingç businesses to repatriate foreign profits to reinvest in the united states, that has an impact on wages for people who are working for those companies and obviously the ability to create more jobs. so i think there will be more opportunity for middle income americans.
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i think they will have the ability to advance throughout society with a pro-growth tax structure compared to the structure we have now. trish: i hope so. i really think they have been unfairly penalized in all of this. you mentioned offshore profits. we have 2 trillion plus dollarsç sitting overseas. this is loose framework. we're excited momentarily to hear more details from republicans and from the president coming up. but in terms of that overseas component of it, got all the money sitting there, you could bring it back. they're talking about doing it as one-time thing. i don't know if it will work. i would like to see it permanent, guess what? here on out, all the money overseas you can bring it back. you can bring it back without penalty. make it work for us? >> i agree. the thing the money is beingç taxed when they're making overseas profits. they pay taxes to those countries they're making profits in. so you have some large companies that have a big presence in the united states. we should want to incentivize
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them to bring money back here, rather than put up roadblocks to them bringing money back here. so i think making that incentive permanent would be a much better tax structure. if you do it as one-time thing, i think that would be a good little juice to the economy. five years from now we end up in the same place as overseas profits accumulate and they stay parked outside of american shores. trish: makes noç sense at all. quickly, congressman, before i let you go, what do you think of chuck schumer trying to sell this as a tax plan, tax cut for the rich? >> no matter anything republicans do with taxes he is always going to say it's a tax cut for the rich. i would love to see some of his constituents in new york, making 75,000, $150,000, if they think they're undertaxed. i think most of them think they're overtaxed. >> congressman, well-put. i would ask for our viewers, taxes are?xu(ward 90%, 91% was the top tax bracket that jfk brought down significantly, and
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as i mentioned at the start of the show, what did you see but a 6% growth in our economy. lower taxes equals growth. higher taxes equals a shrinking economy. that is reality of these numbers. joining me right now former ceo of cke restaurants, andy puzder. look i can preach this forever, you can preach this forever but you still have chuckç schumer d company going out there saying this is nothing but a giveaway to corporations and giveaway to the rich. how will you fight that from sort of a packaging standpoint if you would, andy, right now, when that is the tone coming out of the other side? >> look reality is we have to stop -- this isn't europe. we're not talking about class warfare. in america what we do in america, we should be asking the question, what will generate the greatest economic prosperity for every american? not who benefits or who doesn'tç benefit, but what generates the greatest prosperity for this
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country? everybody in this country has an opportunity to improve their lives. everybody in this country strives to do that. tax code that prevents people from moving up should be eliminated, should be reformed. this program that proposal by the president will do that. it will generate growth. it will help all americans. the fact, this argument it is benefiting the rich is just bs. it is just not true. trish: one thing i would point out is, that the more money youç make the more money you do pay in taxes, right? that is reality of it. so when you look how this all shakes out the top 20% contribute to 80% of the government's revenues. why? because they're ones earning money. half the country, andy paying no federal income tax at all. so the wealthy, yeah, they may be getting a tax cut but they're actually the ones paying the tax. >> right. that is exactly why we shouldn't
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be focused on who is going toç benefit. i think top 1% pay about a third of all personal income tax. that is a huge amount. that is very progressive system but there are actually not getting, contrary to what schumer said, they're not getting some big tax break here. their rate may come down a little. it may not come down at all. when you eliminate deductions like you said, the state income tax deduction -- trish: you made be paying more. >> they will pay more to the federal government. you're really, by the way, the penalty, theç encouragement to bring money back to the united states, if we switch to a territorial system which this plan would do, you eliminate the disincentive to bring money back here. so you don't really need to keep that, that program incentivizes people to bring money back in place because once they bring back what is already overseas, they won't have the incentive to keep it overseas in the future. that is the point going to the territorial system. trish: we did that once before.
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president bush tried that. it didn't work out quite as intended,ç andy why? it was a one-time deal. >> it was one-time deal. number one we didn't switch to territorial system after we implemented the one-time penalty. number two, the penalty, the penalty was too high. and number three, there wasn't $2.6 trillion sitting overseas. we didn't have the kind of problem today. trish: is that the number? >> yeah. 2.6 trillion. i read it before i got on air. trish: 2.6. i knew it was more than two trillion. when you think ofç it creeping towards 3, it is sad. working for everyone else, exempt for us, except for people back home need it, need those jobs. need that investment. again the middle class. andy puzder, thank you so much. >> thank you, trish. trish: breaking right now, republicans lawmakers are about to unveil the tax plan any minute from now. we've been reporting. i will refresh you here.
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the plan will collapse the current seven tax brackets can to three, 12%, 25%. top rate would be 35%. we are hearing rumors some high earners mayç see a surtax on that. we also know the corporate tax rate will be cut from 35% to 20%. the president was out speaking moments ago said, he originally wanted 15% but they couldn't make the numbers work. 20% is the number. he is now at and he is not negotiating he said with that 20%. to is it. it is not everything that the president promised. it is not everything lawmakers promised but is it good enough, good enough to help our economy? joining me right nowç bull's-ee brief publisher and author adam johnson and shelby holiday. adam, what you see, i would point out we don't have all details but very have some. >> they are leaking details. it is simple trish, hooray for
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america. weave been waiting since 1986, last time we got tax reform and we're finally going to get it. we don't know the details but we have a good indication. if we create lower rates for middle america. if we create a lower levelç playing field for american businesses, if we're able to put more capital back in the hands of people that hire other americans, build businesses grow the economy. you know what trish? i'm all for it. hooray for america. trish: you've been saying this. market is on a tear. you've been predicting 23,000 potentially this year. we look at the stock market at 22,338. how much, do you think tax reform is baked into into the stock market and how much may be a pleasantç surprise? >> a lot is baked in. business leaders looking to where it shakes out. president trump wanted to start at 15% at the corporate tax rate. he was willing to negotiate up to 20. now he will not budge from 20.
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that gives businesses more clarity. pass-through rate for small businesses. once they have the numbers, you start businesses to react. plan for future. if this looks like it gets passed, market bows up. largely baked in. it is important to note there are a lot ofç unknowns. we still don't know the rate money is repatriated from overseas. trish: right. >> we don't know what the territorial system looks like. it is tbd. we want more clarity. trish: i want to point out to viewers. you're live video at capitol hill. moments from now republicans are out there touting the tax plan of the they will give us more details on some of these things. the president is in indiana pushing this. adam we've beenç talking aboutt so long. i think there is a fundamental shift happening right now, this is significant and important. as i talk about the middle class economy that is continuing to
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get -- >> hourglass economy i think is very apt. trish: this is the opportunity for them hopefully to do something about it. you see paul ryan coming up to the podium. i want to remind everyone, they will speak momentarily this is a chance to do something about it. for last eight years, adam, z in environment that ls at wealth that should be penalized. business should be penalized. that hasn't worked. >> no it hasn't worked. 70% of the jobs created in this country are created by small businesses. we, people, we are small businesses. we work together. we talk about corporations. guess what? corporations are made of people. people have emotioned. people have families. they have responsibilities. we're finally getting a group of congressman together who recognize that. trish: this is an opportunity for them to show us they can actually get something done. let's hear what they haveç to say. >> this is a historic day. this is a day that is a long
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time in coming. in fact it was on this day under this dome, in 1986 that congress took the final vote on the last overhaul of our tax code. that long. after that vote president reagan said americans would quote, finally have a tax code they could be proud of. it was true then but things look very, very different today, don't they? instead after sourceç of pride our tax code has become a constant source of frustration. it is too big. it is too complicated. it is too expensive. today, we are taking the next step to liberate americans from our broken tax code. this unified framework deliver as new tax code that is simple, that is fair, that is pro-growth and pro-family. cutting taxes on hard-working americans so that you can keep moreç of your own hard-earned
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paycheck. simplifying the tax code so you can file your taxes on a form the size of a postcard. reforming our tax system so that business, particularly small business, can gain a competitive edge on our foreign competitors. and taking bold steps to bring jobs and profits from overseas back home to the united states of america. this is vital to america's future. and it is urgent. we want the american people to wake up in the newç year with a new system. so our tax writers on the house ways and means committee will work with the members of the senate finance committee to turn this framework into legislation. i want to thank our counterparts in the senate and in the administration and i want to especially thank president trump for his leadership. to him this is a once in a lifetime opportunity that is all about more jobs, fairer taxes and bigger paychecks for
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american families. for all of us, this is a now orç never moment. the choice before us is really clear. we can succumb to the talking heads on tv and special interests who want to maintain the status quo, or we can work together to seize this moment and do what the american people sent us here to do. we can rise to the occasion and write our own future. we can finally get this done for more jobs, for higher wages, for bigger paychecks, for a stronger economy, for our workers, for our children, and for the more s@yrosperous and more confident america that we all deserve. thank you. senator mcconnell. >> well no one has been more passionate about what we're announcing today than the speaker for a longer period of time and he has laid it out very well. to summarize what this is about,
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it is about getting america going again and growing again, providing jobs and opportunity here, ratherç than overseas. providing middle class tax relief for hard-working american families, so they can get ahead. put another way, taking money out of washington and putting it in the pockets of our citizens. chairman brady. >> good afternoon. thank you, leader mcconnell, thank you speaker ryan for your leadership on a big, bold, tax reformç effort. it is exciting to be with you today united around a framework that paves the way for bold transformational tax reform. americans have been waiting for years, they have been waiting too long for washington to fix our broken tax code. they have been waiting too long for better jobs, for more take-home pay and a stronger
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economy. today, house republicans join with president trump and our senate colleagues in letting the american people know we're taking action now. action that will bring moreç jobs, fair taxes, and bigger paychex. after years of work in the house, months developing this framework with our senate colleagues in the white house, ways and means committee is ready to turn this framework into legislation. the president trump can ultimately sign this year. we're closer than ever to finishing what we started for the american people. for the middle class workers and families and the main street job creators, merely struggling to get byç today. this is our year to chart a new course. to provide tax relief to millions of middle-class families, and those who want to be middle class families. to help workers and job creators of every size and every
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community compete and win anywhere in the world, especially here at home. and to help make the tax code simpler and fairer, so americans can keep more what they earn, so fair and so simple. nine out of 10 americans will be able to fileç their taxes usina simple postcard style system. yes, we have a lot of work ahead but today mark as major step forward in that process. ways and means committee, leader mcconnell, speaker ryan, we're ready to build on this momentum to get tax reform across the finish line for the american people and i know our senate colleagues are ready to do the same. with that i'm proud to turn it over to the chairman of the senate finance committee, senator hatch.ç >> well, thank you, senator. we're counting on you doing a good job over there in the house. we know you will do it. i was here in 1986 when we did
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the massive tax reform and i have to say we reaped great benefits from it because the economy was turned around. we went forward like never before. we intend to do that at this time as well. i'm proud of our members of the house, for the work they're doing in this area, for our speaker, our chairman and others as well who are working in the houseç to try and bring a bill through that will make a real difference and i'm very proud of our leader in the senate and of course our finance committee in the senate, people who are working together. i hope we can bring democrats and republicans together in the best interests of this country. we're going to do it. we're tired of things going the way they're going. we'll try to turn this mess around. i hope we will have support from all of our senators and congresspeople on both sides of the aisle to the benefit of ourç country. >> at this time i would like to ask senator thune to come up,
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member of the senate finance committee. >> thank you, mr. speaker. the framework announced descends a loud, clear, message, that is tax relief is on the way for the american family. after eight years of economic and wage stagnation, under the obama administration families in this country, 50% of them say they're living paycheck to paycheck. a third of the families in this country say there areç only $40 away from a financial crisis. that is unacceptable. that's why this tax relief effort will bring much-needed relief for working families in this country. lower rates for families. doubling of the standard deduction for families. expanded child tax credit for families in this country, it will mean that they will have more to spend on themselves and their families, instead of sending it to washington, d.c., to the federal government. that is a good thing for families in this country. thisç is about bigger paychecks. it is about higher wages.
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it is about more economic growth in our economy that benefits every american. i look forward to working with my colleagues on the senate finance committee, with our colleagues in the house of representatives and with the administration to make this happen. i hope that there will be some democrats who are willing to work with us because this is what they say they're for. if they're really for middle income tax relief, why wouldn't they join hand with us in making it a possibility for the american people? we'll look forward to what comes ahead. this is a very excitingç time. something that is long overdue. something will be very meaningful in the lives of americans. thank you. >> i would like to introduce the chairwoman of the house budget committee, members of the ways and, means committee, diane black. >> good afternoon. i want to say thank you to chairman ryan and chairman kevin braid i encouraging productive dialogue in our conference. widely known as tax reform is high on the list of priorities
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for both congress and theç administration. for years we've been talking about the possibility of reform, that makes life easier for our hard-working americans and our small businesses trying to navigate this very complicated, burdensome and expensive tax system. now as the governing majority we have the opportunity to translate all of this talk into action. while i'm encouraged by the steps that have been taken in the right direction today, passage of the budget is still the key that unlocks any of these great ideas. as chairman ofç the house budgt committee i'm proud that my committee already provided the blueprint to start up tax reform. the most conservative budget approved by this committee in 20 years. it received unanimous support of the republican members when it passed out of our committee in july. using reconciliation our budget paves the way for pro-growth tax reform that reduces tax rates,
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it simplifies the tax code as already been said, and it restores the trust in theç american economy and the workforce. and today's retreat it is clear we all want to help our job creators and middle class families. they're the ones who are often get the hardest hit by the confusing tax system currently in place and i'm encouraged that we are closer to changing that. the next step that we need and should take is for tax, for tax reform is the passage of our budget. >> next i wouldç like to invite senator scott to come, a member of senate finance committee. >> thank you. when we think about tax reform the question comes to mind, what does is this really about for the average person back at home? i think of one of my constituents, sherry, who is a single mom, two kids, working very hard, needing more of her take-home pay.
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tax reform is -- trish: all right. you heard them all, almost all of them, talking about tax reform. this is a historic day. paul ryan opened it up,ç saying historic. it is indeed. we have not seen any meaningful tax reform since the years of ronald reagan. there is some nostalgia for you. andy johnson and shelby holiday and lido isle advisors jason rotman. this is up better than 2%. is this related to some hope for small businesses? >> yeah, of course it is. the market is telling us we're getting very close to what the market has essentially been pricing in andç anticipating fr the past 10 months now since the president got elected. you know i think the market is really enthusiastically excited obviously lower taxes on u.s. companies, really u.s. small businesses. middle tax cuts that is to be determined to be perfectly
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honest. if corporations pay less taxing and pass it on -- trish: we just heard. they made it very clear, tax rates go down for everyone. maybe not those on the super, super top. we can talk about that separate. we should be fair and equitable, everybody should get some kind of a tax cut. you're looking at air force one there landing in indiana. the president will be speaking there about his tax reform plan. you heard him earlier talking about the 20% for corporations. he originally wanted 15%. 20% he said he is not budging from. he will not negotiate on that one. adam, this is econ 101. >> yep. trish: businesses want to build more. they want to be here in the lower as opposed to higher but, i'll tell you, some folks like chuck schumer still don't get it. >> i was amazed actually that chuck and nancy, the dems, did the deal with the donald, right? but they did.
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i still hold out hope that chuck schumer will figure this all out. if you actually look at some of the specifics of this proposal they're talking about like allowing companies to fully deduct cost of plant and equipment. that is a wonderful thing. it is stimulative. if you talkç about actually repatriating foreign profits 2.3 or 2.6, whatever its trillion overseas, get the money coming back to the country, getting people back to work, put a small tax on infrastructure. it is not just lower tax rates. it is the nitty-gritty that is positive. trish: i think if there is opportunity for bipartisan effort, shelby holiday, it could be this? we saw them get started on corporate tax reform at various other times. the demoqrats seemed to be willing to meet republicans halfway. yet you get chuck schumer out doing what he did today. >> which surprised a lot of republicans. what you're seeing right here
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with air air force one landing l be most important part of the day. president trump has to sell this. it's a plan he originated from the white house. he had a blueprint earlier this year. he really needs to combat the idea this would be a big break for the rich. democrats are saying it would hurt middle class families. it is on president trump to lay out good for all americans. why this is win/winç situation. he has to be realistic bit. he said in the past, he floated numbers economic growth that economists don't necessarily agree with. if he can be realistic, explain the plan, why it is great for all americans, then there is a great chance for bipartisan support. trish: i tell you, shelby, if anyone can do it, it's him. >> it is the donald. trish: the reason i say that because for so long the republican party was wealthy elites. mitt romneyç didn't help the case. he came along, seemed out of touch.
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donald trump, comes seemingly out of nowhere up against the likes of hillary clinton. hillary clinton felt like let them eat cake democrat. >> she was so contrived and stiff. trish: amazing the guy with more money and more success than previous candidates, even mitt romney, painted as successive wealth, he relates more to the average person in america than the democrats. >>ç yes. that is the secret of donald trump. he is a populist. i sort of feel like in some ways he is republican in name, a democrat, almost at heart, just because he is very close to that middle american that we key talking about, who quite frankly needs relief under tax reform. the issue is whether the gop leadership will be able to get people, other members of the gop off the fence and make sure they're on the fence as they couldn't do with health care just because there has been friction between mr. trump and the gop. it is incumbent upon
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mitch mcconnell to circle the wagons and get every gop member on board. trish: what do you think the chances are, shelby, then i will go to jason, i mean, did they learn anything in alabama, right? roy moore, seeing a lot of success in part because it is, you know what to the establishment, right and to mitch mcconnell, and to paul ryan all these people perceived not being entirely on board with the president's agenda. can they sort of circle theç wagons enough to get the support? shelby? >> yes, i don't know what happened to the other guest, but yes, i mean i do think they can get the support. to your point about donald, the donald being the ultimate salesman, i think one person who could really sell the plan in terms of the corporate aspect is donald trump because a lot of americans think corporations don't pay their fair share. we heard that a lot from bernie sanders. it really resonated with a big section of the electorate.
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i think president trump is explaining why you want to lower taxes for corporations. trish: for everyone. >> he does not beat around the bush when it comes to lower taxes for businesses mean more money into the hands of americans. trish: jason it is kind of remarkable. again the republican party which had been perceived thanks to tells you, doesn't it how much it is about the candidate. because kerry came across as just a, kind of a wet dishrag. >> a tool, i will say it for you, trish. trish: an elitist. hillary clinton hadç the same problem. you think about w, right? you think about bush, how he came across. he related to your average person. and so, so much about politics and so much about policy is how does that person that is selling it relate to your average american. and donald trump has really conquered that space in terms of not coming across as billionaire
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from new york, which by the way what he is, jason! >> well, you're right. charismatic leaders that has been true since time in memorial. donald trump is a perfect case in point. human beings are incentive driven. if people see someone at top can help them earn more money, get more jobs, that is a winning formula. again he is a brilliant case in point. i will add, one thing i believe smart money and everybody should be watching, will interest rates go up enough to kind of makeútae market concerned that the government is going to have to sell more bond to fund all of this -- bonds, all of this tax reduction. trish: it will cost money. i hear you. jason is making a good point. it will be costly to do this. sometimes, when what do they say, you can't earn without spending a little. >> takes money to make money.
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>> right. trish: in this particular case you need to help the middle class so much in our country right now you might be looking at a situation where it is going to cost a little bit in the near term. out of that one because otherwise, future generations really are going to be doomed and plagued by these excessive 20 trillion plus dollars worth of debt. we're waiting for the president to descend from air force one. indiana about his tax plan. there is a lot riding on this one. can he do it? tell you one thing, adam johnson, the other system didn't work. >> no, didn't work. trish: president obama, with otherwiseç onerous approach to business, willingness to keep taxing and redistributing wealth, that is something that did not sit well with our economy. it did not sit well with business leaders. it certainly didn't sit well with the average american. >> by definition it didn't sit
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well, because democrats got voted out of congress. why we have a gop house and gop senate and gop white house. what was happening for all those years, under president obama, it wasn't working. we weren't growing the economy. iould also argue as we talk about low interest rates, we probably kept interest rates too low. you have to let free markets be free. part of that is giving people back money they themselves earned. people, businesses especially small businesses, trish, are much better allocators of capital than the federal government. trish: isn't that the truth? isn't that reality of it? we tend to be more careful with our own money. >> oh, yeah. trish: when you get a big budget, a bunch numbers on a page. this is whyç personal financial advisors say, go to the atm. take out your money for the week. know if you go to starbucks, on a latte that is $4 out of a your pocket. something about the money
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belongs to us, makes us all more responsible. >> right. personal accountability. i think, i would rewind back to the press conference we heard from republican leaders. one of those republicans actually talked about a certain person in his district. those are kind ofç stories that will resonate people. if you can picture a single mom or middle class family struggling with a high class burden then you understand it as benefit you bring personally as an american i think the anecdotes are very important. trish: i said the same thing to adam. we're not getting details here. right now they have to sell it, right? they have got to communicate against this message which is going to come out of nancy pelosi and chuck schumer and bernie sanders and elizabeth warren, somehow this is some big giveaway. it's not. i tell yot americans are logical. we are very logical people. people make logical decisions. the way our tax system is, it is not incentivizing the right
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things. i'm going to give you an example. if you're a of single mother of two living in hawaii, you have nearly $60,000 worth of federal, state, local, benefits, by not working. so why would you ever go to work? why would you do that? pay all the tax that would go with that? there is the president of the united states, donald j. trump,ç descending from air force one in indiana where he is going to address folks why we need lower taxes. why we need to be helping the middle class. why we need people that are out there, going to work every day, to earn a living. why they are doing this. why they need to keep that money. small business owners, this is an opportunity for them to keep a little bit more of what they earn. the corporate tax would be reduced to potentially 20%. ã lot better than the 39 plus. we have highest corporate tax rate in the world all-in.
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how could that be? adam, more than canada! >> i hope, i really hope that the messaging that the president uses focusing on what you just said, which is small business. again small businesses, fewer than 50 employees, create 70% of the jobs in this country. yeah, while i want the president to talk about lowering the corporate tax rates to make multinationals more competitive, sure, what iç really want him o do is focus on small business, taxing them more efficiently. the llc, the guy who learns how to be a plumber and creates his own plumbing practice. he employs three others, teaches them and it is a llc. they should be taxed at low rates. these are the guys we need to look out for. these are the business creators, trish. trish: you're so right. you can get me started. i'm already fired up. i actually have to employ a littleç econ 101.
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pay a little bill or two. we'll take a quick break. come back with the president as he addresses folks in indiana. he has to sell it. he those sell it to the american people. i think he can do it. but it's a big task. you're talking about giving more money to you and me and everyone else. what is he going to tell us? side. wondering, what if? i let go of all those feelings. because i am cured with harvoni. harvoni is a revolutionary treatment for the most common type of chronic hepatitis c. it's been prescribed to more than a quarter million people. and is proven to cure up to 99% of patients who have had no prior treatment with 12 weeks. certain patients can be cured with just 8 weeks of harvoni. before starting harvoni, your doctor will test to see if you've ever had hepatitis b, which may flare up and cause serious liver problems during and after harvoni treatment. tell your doctor if you've
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trish: historic day for every american. there is a possibility that we might actually see meaningful tax reform. i don't want to get you too excited yet because we know what happened with repeal and replace but there is optimism right now that both sides can come together to get this one done. you're seeing the president's motorcade going off. the president landed in indianapolis off air force one. he is enroute to the speech that he will be giving on tax reform. we've been talking about how there is a lot of pressure on him. he really has to be able to sell
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this. democratic senator joe donnelly is with president trump in indiana. that's significant, right? we're talking about this bipartisan effort. he will join the president at his speech. the president will be pitching this plan, this tax reform plan at the indiana state fairground at the top of the hour. that is happening momentarily. done nelly is -- donnelly is considered one of the most vulnerable democratic senators in the midterms which could compel him to support the president's plan. the white house picked mike pence's home state to make the announcement, bragging about how pence signed a $3.5 billion tax cut into law. connell mcshane is there in indiana as we await the president. i think what is most exciting about this, connell, is that you're going to see a democrat up on stage there, a democrat traveling with the president because regardless of party, there is a sense that we need to
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do something to help every day americans. that is tax cuts. regardless what side of the aisle you're on, you want to see america succeed. reporter: there's a bit of a pattern, trish, emerging here. they did this, the white house out in north dakota, right, when heidi heitkamp, democratic senator accompanied the president, went to that event and also about tax reform. so following, you're right, following this same type of a senator, right? a senator from a state that was won by the president, that is up for re-election next year. that is the kind of arm maybe you can twist. we'll see. the mike pence factor is something we're looking at closely as we arrive in indianapolis. that seems to be a big part of the argument as well. when he was governor, what he did here can taken nationally. some of the quotes out of senior administration officials, you will get an idea what we're talking about here. here is the first one. america's outdated tags code
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they say fallen behind rest of the world costing the u.s. about jobs and higher wages. they talk more about jobs, the idea is to make america the jobs magnet of the world by leveling the playing field for american businesses and workers. that is the idea here in indiana. they look at numbers put up by the vice president as governor. unemployment rate was 4.8% when he came in. it was down to 4% even when he went out. that is something he can point to. when they say how did he do it. they will argue lowered taxes, a death tax he got rid of it. those arguments that the president makes here at the fairgrounds can be taken nationally. we'll see. trish: who wants to pay more taxes? think about it. it destroys incentives for individuals, for corporations. you want to be the most competitive place. you have to come up with a system that insures that ability
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to compete. so corks none nell perhaps indiana -- so, connell, perhaps neither one is too onerous. perhaps we need to get there as country when we talk about 20% on corporations instead of nearly 40%. connell mcshane, thank you so much. we will be going to you back there in indiana momentarily as we await the president of the united states talking tax reform. next.
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trish: we're waiting on president of the united states. he will be speaking there on stage in indianapolis. this is very big day. he is out there speaking about tax reform. this is one of the things he
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campaigned on. one. reasons donald trump won the presidency is because of our economy and i talk about the middle class continue eyely getting -- continue allly getting squeezed. we're in an hour grass economy, you have a lot on the top and a lot on the bottom. if you're top you're fine and if you're at the bottom you're fine. single mom of two in hawaii is more incentivized to not work because you have all kind of handouts to the tune of $60,000. how does that make any sense? if you're a mom making $75,000, you're paying for taxes, day care, et cetera, you may not go to work. we need to realign our incentives. we can do that through tax policy joining me right now, matt welch, editor-at-large for "reason." >> nice to see you. trish: this is an opportunity, matt, it really is. >> it is an opportunity. so what you want to do is maximize the good ideas in things like getting rid of
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worldwide taxation on american businesses. we're one of the few countries that do that. that's a great idea. reducing overall corporate tax rate by a significant margin. these are all really good ideas. my note of caution in all of this is that unlike in indiana where being done, indiana went before its tax cuts, did a lot of structural reform. they cut the size and scope of government. they privatized inessential services. talking about mitch daniels in 2005 to 2013. trish: we do that too. there's a lot of privatization opportunities. >> there are. and trump administration has been some interesting things in the deregulatory front right now that are not getting enough attention. but we zoomed through the $20 trillion debt mark this month. we raised the debt ceiling. when you have a debt level that high, i think this tax reform will likely increase the deficit and the debt long term, when you increase that, that can have a negative impact on long-term economic growth. that is a problem. trish: i got three kids. my husband and i talk a lot
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about what is their future going to be like? when you talk about $20 trillion worth of debt, if we don't start to see growth, starting to see a middle class thriving here in america, all of our kid will be at risk. that is not a scenario any one of us wants to see. >> yes. trish: because we'll talk about that a lot. trust me. back to the good news here, opportunity for this, you heard me mention how people make smart choices, right, about their lives, how our tax structure, i wrote a column in "usa today" about this, when you look attacks structure for marriage, we disincentivize people getting married. we disincentivize work. we need to change this, so that people are seeing our values promoted in tax policy, instead of discouraged. >> not just that, it croat as whole amount of headache -- creates a whole amount of headache for people. we waste a whole lot of money filling out taxes because of
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complications of this. the principles they announced look really good, but when you start putting it on paper, you go to the industry, say you no longer have the carveout, we saw it today with president trump, he is concerned about waving the jones act, the shipping industry doesn't like waving jones act in puerto rico even though it would benefit 3.4 million people. when you have people benefiting from a tax code, makes it difficult for politicians to do that. trish: it shouldn't be that hard. they need to do what is right for the country. everyone is getting sick of them telling us it that's hard. this is their opportunity, if they can't get it done. they will get themselves voted out of office. matt welch thank you very much. we'll take a quick break. i will be right back. my dell small business advisor has gotten to know our business
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. >> there's a lot riding on. this the president is about to speak about his plan to reform our tax code. that's happening in just a couple minutes. i'll tell you, it's coming at an important time, we cannot
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continue on a path where we keep trying to redistribute wealth, we need to encourage productivity and this is an opportunity to do so. we'll see what he has to say. i'm on "outnumbered" tomorrow on fnc. see you at noon. liz? liz: the framework at any moment. finally the tax reform reveal. president trump on the ground in indianapolis where he will formally unveil his plan for widespread tax relief for individuals and corporations. the president's red lines, corporate rate of 20% and tax savings for the middle class. in the last hour, the gop calling it fair and simple. house and senate republicans cheerleading unified tax plan but where are the hidden giveaways to the very group democrats say is their red line. the wealthiest? we're about to find out, the bulls thundering along and you have the s&p and the russell small caps near record


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