tv Cavuto Coast to Coast FOX Business November 2, 2017 12:00pm-2:00pm EDT
from wisconsin, dream on. ash, historic day. stuart: came out a lot sooner than it would. broke one hour ago. neil, it is yours. neil: stuart, thank you very much. this is what we're looking at. something better than we had before, that is the way republicans sell it. we'll taub to a whole bunch of them. something reshape the tax policy, crunching seven tax brackets down to four. there is a high one for very richest among us, still at 39.6% for couples earning a million dollars or more. what is permanent here, is the move to lower the corporate tax rate to 20% from 35%. that will not be phased in. it will also keep contributions to 401(k) tax plans and like, tax deductible. they did not touch the third rail. for now they are leaving it alone. so too with $300 per person credit for filers and their
spouses, non-child dependents if your kid is in college. that will phase out over time. some things will phase out. next couple hours we'll get into. net-net, more tax cuts than tax reform in the classic sense of the word here, but it does move the rates here where the upper income still will be paying 39.6%, but a chunk of their savings will come between the gap where we have the 39.6% rate, 400,000 in the new plan. 250,000. they will enjoy a bit of a tax sort of holiday there in that differential. unfortunately they lose that by losing a lot of local state and tax deductions they bottom in high-taxed states. you could keep up to 10,000-dollar property tax deduction. we get lost in the weeds here. sufficient fist it to say, for
well to do, stuart point out, president telegraphed, republicans telegraphed it, what we look next cowell hours what republicans are saying about this. what people are upset about this marco rubio, we're hearing the senator from florida, is concerned that the child tax credit he is pushing will be $1600 per child, not the 2,000 or more he was originally seeking. we're told he is not pleased with that. a number of other republicans leading that effort to expand the credit not happy either. whether that translates down the road into no votes anyone's guess. fallout on corner of wall and broad is, you might expect kind of confused. they're assesses this. compared to what we have now, it is better. they're taking the good here, looking at a half full glass. adam shapiro at capitol hill. adam what are we looking at? reporter: brackets and income cutoffs for the bracket.
first one hundred thousand dollars income, 2,490,000, that is 12%. 90,000 to 26thousand, married couples neil, 25%. up to one million dollars at 35%. a million dollars and more if that is your income, god bless you if it is, 39.6%. that is what the tax rate will be. for unmarried individuals it's a little different. zero to 24. you pay nothing. up to $45,000, 12%. 25% tax rate kicks in up to $200,000. 35%, up to $500,000 a year. and then 39.6%, if you're a single person, this will be $500,000 or more. kevin brady says this is a about a middle class tax cut, letting you keep your hard-earned dollars. here is what he said. >> that's your money. you earned it.
you deserve to keep it. you should be able to use it for whatever you want. that is exactly what this bill will do and why the tax cut and jobs act has president trump's full support. reporter: so again, this is the house version of the bill. neil, you were talking about a little bit about the senate. we'll get the senate's version next week. eventually they will have to reconcile these two pieces of legislation. the goal to get it all done before christmas. neil. neil: thank you very much, adam shapiro. house gop conference chair, republican congresswoman kathy mcmorris rogers. thanks for joining us. >> great to be with you. neil: play this out for me. you guys stuck to your guns when it came to the deduction for state and local taxes. that is not going to be allowed, as some sort of a -- something for those really feeling bad about this, up to then thousand dollars they can write off for property tax and like. a lot of them, a lot of those in
the state will owe taxes. what do you tell them? >> well, we're about everyone in this country seeing tax relief. so we continue to work through those details but we're very excited about this day. there is a lot of momentum. as you think about no matter who you are in this country, whether a single mom, or small business owner, we want to by you tax relief. we want you to have bigger paychecks and more take-home pay. neil: in those big states i mentioned, congressman, that will unlikely happen, right? >> well, when you look at the doubling of the standard deduction, when you look at some other provisions we're still working through it but our goal is for everyone to have tax relief. i think it is important to remember these are the high-taxed states, at state and local level these are very high-taxed states. we're focusing on federal income taxes but we want everyone in this country to experience tax relief in this package. neil: all right. when you look at various rate
levels and brackets, how much wiggle room will there be between the house and senate? i know the senate finance committee, congressman, is working in one area while the house ways and means has been working on its plan but are those rough brackets outlined as the likely will end up being? >> i believe so. there has been a lot of work put into getting us into this place. work between the house, the senate and the administration. we agreed on the framework several weeks ago, that largely laid out those tax brackets and, our goal has been, when we launched it today, that we would be pulling in the same direction. you know, later on today i will be headed down to the white house with president trump where we are doing another overview of the legislation and coming together. we have momentum. we want to keep momentum going. we believe this is going to have, it is going to be economic boom for america but it also is
going to help every family. it is pro-family and pro-economic growth. neil: i do take it when you meet with the president later today, congressman, he is on board with some of the key provisos you have here? he was very much concerned taking away tax savings status with the 401(k) contribution and like. i notice that was kept out of this. he didn't really telegraph too much how he felt about the provision to remove state and local tax deductions which would be a pain in the neck for those in high-taxed states. is it your sense he is on board with most of these provisos here? >> yes, it is my sense that the president is on board. he has been very engaged. he has been pushing us. he wants, he wanted this done, he wants it done, he echoed our sentiment in the house that it needs to be done by christmas. we want to get this tax relief in place for families and small businesses all across this country so we can get the results, we can get more jobs
created in this country and small businesses are the economic engine. that is where the jobs are created. and we prioritize small businesses that have had the highest effective tax rate of anyone in america. they are the ones really shouldering the tax burden. we also want families, and doubling of the standard deduction from 12,000 to 24,000. your first 24,000 is tax-free. we want everyone to be dreaming again and to have more money in their pocket, so they decide how best to spend those dollars. that is where we really have been working hard, with the president, with the senate, with our members in the house, to answer all the questions, get the feedback, but be able to largely be in agreement as we move forward so that we can get this on the president's desk by christmas. neil: your colleague, sean duffy, was on earlier with my friend stuart varney, making
this retroactive. how likely is that? >> one thing you should know, if we get this in place, if we, if we get, if the president signs this by christmas, immediately, in january, he have one will start seeing a higher paycheck because, what is being currently pulled out of your check is going to be reduced. so, it would go into effect immediately on january 1st, 2018. families and individuals will see that. >> all right. so not retroactive issue but notice it as soon as new year, the tax tables take effect? >> right. neil: see that difference again. i want to take what it means for businesses and all. we can get into the weeds on pass-through and 25% for smaller businesses and like. there were walls set up to prevent a lot of very wealthy individuals, you know, from moving to that rate so that they could sort of find an advantage
for themselves. you have taken that out but critics already said what you've done process, made the rate unrealistic. it will not be 25%. but likely significantly higher than that what do you say? >> well, our goal is to make sure that small businesses are getting relief, and, our calculation is that this will be the largest relief for our small businesses since world war ii. they will pay the lowest rates since world war ii. they are our economic engine. the provisions as we are launching today, it includes a short form and a long-term. small business was have an option. we want to hear from small business owners what they like. if it is, and we want to get that feedback. so this might be an area where we need to continue to work on some of the details. neil: as the house gop conference chair, and you have a lot of responsibility here so first of all i appreciate the time you took just to chat with
us but is it your sense all the efforts you and your colleagues getting democrats on board, making this not looking too friendly to the upper income, which it is not, the rich will still pay, in fact many could pay more, will gainty any democratic votes? do you think through all the effort you will get a democratic vote support here? >> well i hope so. i hope they see that this is both pro-family and pro-economic growth. we want everyone to have an opportunity for a better life, to reach their full potential and part of that is lifting the tax burden that we currently have in this country. we see jobs, going overseas. companies that are becoming foreign companies that were american-made companies. so, this is our time. people have been waiting a long time. i would welcome the democrats to join us in this effort. this, it has been long overdue. it has huge potential. and we need them all to be a part of it.
as chair of the republican conference, i've been traveling to different states. we've been holding faces of tax reform forums. the feedback has been so positive. i was in north carolina, michigan. i'm headed to virginia this friday. then to pennsylvania. people are, are so encouraged that congress would be taking this action and i might mention, neil, we've also started a text-messaging, if you want to text tax reform, to 50589, you can join us directly and give us your feedback. also get latest information. neil: all right. cathy mcmorris rodgers, thank you very much, house gop conference chair. great seeing you. >> great to be with you here. neil: as we're speaking so is white house economic advisor gary cohn, that the tax bill is something that the president can and will likely support. we're monitoring closely what he is saying at economic club forum. go to charlie gasparino crunching some other numbers
here. we keep forgetting, charlie, part of this, you get a mix of disappointment and glee, they're constrained under this system of reconciliation not blowing deficit so you can't go too crazy. argue you should cut spending so it is what it is. it is the give and take. what is the reaction on it? >> they're constrained by ideology. paul ryan is not a supply-sider like art laffer. he looks at static analysis as dynamic. neil: pay for it. >> pay for it immediately. you can't count stuff coming in future. i will say this, when you talk to people, i talk to economists, traders, and investors. there is good, there is bad, there is ugly. what is good? simplifying the tax code, going from seven rates to four. corporate tax cuts are there. not phasing them in. that's big. so that's good. what is bad? they really cut back on small business tax cut, stuff we spoke
about yesterday. when it really comes down to it, because of formula using blended rate of 30%, goes down from 39.5 to 30. that is still a cut, not 25 they're talking about before. that is not so great. where it is ugly on the personal side. i'll tell you, on the personal side, this is not tax reform. basically taking, think about it this way, if you make $261,000 a year, you live in long island, you will lose your property tax cuts and some other deductions, salt deduction and other stuff, you're likely at $261,000 going to get a tax increase on this. forget about millionaires, people making a million. 261, marginally more gets you into the their bracket. neil: 35%. >> that is where it gets bad. neil: it used to be before 418,000, got you into 39.6%. >> got you into 39.6 --
neil: they're arguing net-net coming out ahead of things would be if they stayed the same. >> maybe but you don't know about deduction. this is one other thing, smoke and mirrors of gop is saying, they want to appease everybody. tax reform when you do it, if you do it right you will give a big fat tax cut to rich people who theoretically will spend it on middle class people. but here's the problem that they have. they are giving tax breaks, if you look at this, people at bottom end, getting tax breaks, sound great, but they don't pay much of federal taxes. neil: this is theme coming through again and again. >> income taxes. neil: this came through the pass-through thing, they were trying very hard to prevent rich individuals, guys like you from -- >> snookering them. neil: snookering them. they put all the roadblocks and, and, not saying necessarily agree or disagree, and on the wealthy, that limit their tax breaks to the extent that the 39.6% sticks for them and with
some of the other conditions they will end up paying more. but they bent over backwards. yet irony will be, that, i wonder if we'll get single democratic vote as a result? >> probably not. they say the corporate stuff is giveaway to the rich. they're into it for obstruction reasons. the real question, what does "the wall street journal" editorial page say tomorrow? look what conserve at thises say? neil: right. >> i think they will say, on individual side they i am withed out, there is no doubt. if you want to give a middle class tax cut, don't screw around with the income tax. go to the payroll tax. that is where middle class people get screwed, on payroll taxes. the income tax is smoke and mirrors. what they did, they came out, said, we're giving huge tax cut to middle class people, working-class people who really don't pay much income tax. they get screwed on payroll tax that is the smoke and mirrors. that is what i say is good, bad, ugly.
good on the corporate side. i don't care what anybody says, poke with a ceo yesterday, you cut my corporate tax rate from 39.5, whatever he pays with couple deductions, from 30 down to 20, i get 15% to the bottom line. neil: that is the most dramatic thing. >> it is amazing. neil: it is not phased in. >> by the way, i will do some stock buybacks but hire a lot of technology people and build stuff. that is where it is good. this personal stuff, we have to crunch numbers. it's a joke when it really comes down to it. neil: not as if you come from a high-taxed state. >> i'm telling you, neil, if you make 50 grand a year and live in ohio, how much money are you really going to get on this? neil: we're going through these various brackets and hypothetical situations throughout the show. we will show you that. we'll keep you updated on that. i've been doing a lot of number crunching here. net-net, view on republicans better than what we have? they say yes. are you net-net better off if they didn't touch anything?
they say yes. what does kevin brady think about this? the guy putting this together long before donald trump was running before the president of the united states, he will be in big demand. he is making his first stop with us on "your world" on 4:00 p.m. eastern time. the man who runs the house ways an moans committee, dealt with all the numbers and bruised egos and obnoxious journalists whose name end with a vowel. first on "your world." we'll have more after this. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country.
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neil: any minute we're expecting the president to make announcement not so much on the tax cuts although i'm sure they will come up but talking about a big jobs announcement. we don't know who it will involve, how many jobs potentially it could involve. when we know we'll take to you the white house to get a read of that. house budget committee chair diane black, from the beautiful state of tennessee. first off, on this idea that cathy mcmorris rodgers was raising that taxpayers will see this immediately next year, assuming it is passed before christmas in theirs tack -- tax tables, see it in their paychecks next year. that is a pretty good turn around, isn't it. >> that is pretty quick
turnaround. we're doing everything we can on our side and encouraging the senate to do the same. neil: does that encourage changing tax deductibility on position on those who pay state and local taxes for high-taxed, new york, california, massachusetts, you heard the drill, they will get hit hard and dwarf whatever savings they are getting even doubling the deduction, all of that thing, what do you say? >> we've been working very hard with those with high state and local taxes, looking at those that even itemize. district by district. there are some obviously, in really high areas, such as, right in new york city. but when you start taking a look further out in new york, further out in illinois, you have a great number of people that don't even use itemized deduction. the fact of the matter is, that these states that have the high costs really have to consider whether that is something they want to continue doing. i live in a state with a low tax. we have people crawling into our state every day, about 100 moving into nashville.
so at some point in time, as we look here at the federal level what is fair? is it fair for people in new york and new jersey and other high-taxed states like california for them to be able to write that off on their taxes yet the states keeping taxes low for their individuals, don't get that same parody? that is something that will have to be looked at as we look at parody across the country on tax reform. neil: i certainly hear this. the rap you get from the other states, they give more to washington than they ever give back to washington. who knows, it is what it is. i do want to get your sense of $10,000 ceiling on property taxes, that that is a moveable figure. we heard from a number of senators already this morning who talked about the idea that maybe that number could jump a little bit. maybe that is something that the senate does. what do you think of that? >> well we're in regular order and you know in regular order
there are amendments can be offered. there can be changes made. i don't know what all the senate is looking at. the important thing to know if you move numbers around you move one dial you have to dial somewhere else. our whole emphasis is making sure lower and middle income truly get a tax break. when you start doing that you start, you start getting up to the point where you can not get breaks you want. make sure businesses are operating where they want to stay in this country. so there are a lot of moving parts. i'm really concerned, if we start messing with that, it is pretty good where we have gotten it, actually number of our colleagues feel like we're in a sweet spot right here. i don't want to move it around too much. neil: reason why we mentioned, number of colleagues from the high-taxed states, are first to say wait a minute, mortgage industry association, realtors, they're not happy with this. homebuilders, they think it will be damaging to their industry,
especially this move now to eventually say, on new mortgages, you cap it at $500,000. no longer a million. and that they see the tax incentives for owning a home sriing away. you say? >> i say, look when people have more money in their pocket they will spend more money. they will have more money to buy a larger home. they will have more money to buy more products. i always tell people when there is new sale of a good or service, that means you will provide a job for someone else. they will have more money in their pocket. they do the same thing, buy more goods and services. i want everybody to settle is down, let us get through this process and see how the economy grows. we saw what happened back during reagan in 1986. i think that if we just settle down a little bit, everybody take a breath, we'll see this is a good thing at end of the day. details are getting out there. neil: that's true. >> a lot more details to be understood. once people understand a little bit more, maybe things calm
down. till was rough ride. every time you take something away you have winners and losers, it's a rough ride. neil: we're hearing from all side. congresswoman, thank you very much. very good seeing. >> you thank you for having me. neil: a lot is in the details and repatriation of money coming back to the united states. if you give corporations a tax holiday it is layered in here. suffice it to say the money comes back from abroad and companies pour it into plant and equipment. what if it comes back and they don't pour it into plant and equipment and buy stock? there is free for them to do that. there is nothing demanding that. would that be a waste of time after all this, if it produced, companies bidding up their enstock? if you're investor in the market you kind of like that. we're waiting for democrats that might like this or hop on board. i crunched numbers. i might not be sharp on many
subjects, math i'm okay that. right now if there was a fear tilted toward the fat cats, i find offensive, i say calorically challenged cats, i find it not. will that bring democrats in? no. we heard more concern expressed out of republicans marco rubio, of florida, not a fan of his tax credit proposal eased back. he wanted $2,000 a kid. it is around $1600. he is among many republicans saying this is not perfect but nothing ever is. back after this.
we know for sure we'll talk about that. he pushes to for more jobs. this is part of the something they call the tax cut the and jobs act. we'll get into that in a little more detail. the president making news by saying that aassailant in the new york city terror attack, sayfullo saipov he should be executed. he should get the death penalty for what he did. he planned these attacks for months. we shouldn't be bumping around with this sort of thing. to discipline equals freedom, best-selling author, retired navy seal, jocko willink with that. there is a choice, do we put him in military route, gitmo route, treat him as a criminal. what do we do? >> you can do that i agree with the president on this one. i don't care what route they take to get there. this guy, what he has done, deserves to die. neil: as a combatant, that is more likely than it would be in
new york where they don't have the death penalty. if it's a federal case it's a different issue. but that wouldn't happen, if it was just treated like a criminal. >> then, let's hope it goes the right way. neil: yeah. what did you think, of just the fact that no sooner are we talking about getting isis under control, they're on the run, then we see these terror incidents? you reminded me last time you were here, this is reality, it is happening everywhere but it is what it is? >> this will be a persistent problem. we'll have to continue always be fighting, always be on guard, never let our guard down, they will come out of the corners, come out of the dark. the more pressure we put on them, they will continue to squeeze and get squeezed all over the world so we'll always have to live like this. neil: what is it we're living like? if you look for example, times square, jock, they have concrete, blocks barriers, throughout most major cross streets, so you can not hop on
crosswalk or do what a guy did with a car as what happened in the spring. you can't give up our lives and freedom to move around. what do you do? >> there is a balance between discipline and freedom, right? that is the book i just wrote, which is about individual discipline, giving you individual freedom, same thing as a country. we want freedom in our country absolutely. that doesn't mean you have total freedom everything you do. you will have to make sacrifices on some of your freedoms to maintain freedom as a whole. neil: people are getting increasingly leery. do i want to go to new york for the holidays? do i want to go to las vegas for an event? they're getting antsy. they think this used to happen in europe, not happening here, isis inspired or not it is happening here. >> yeah, it is happening, that is again i hate to say it it that this is ideology that has
foothold here. it continues to grow through the internet and social media. that is an area we can put our foot down to stop some of our growth. neil: what about the lottery program? the president has to end where we incentivize this sort of thing. proponents of the program, saying everyone is sufficiently vetted. you will have someone who changes as they're here or becomes militarized or radicalized whatever you want to call it but the program is sound. you say? >> no, if you're getting access to the country, it shouldn't be lottery, it should be merit you work and record you have in your life. even then you should be vetted very thoroughly to make sure you don't have these kind of thoughts in your head. neil: when you talk about discipline how that equals freedom, the gist, what are we saying, what are we missing here? >> well again, we all want
freedom. in our personal life we want freedom. one of the examples i talk about all the time, financial freedom, everybody wants financial fred dom. the pathway to financial freedom, it is financial discipline, watch what you spend. work hard. don't buy things you don't actually need. eventually that kind of financial discipline will give you financial freedom. same thing in every aspect of your life. want more free time? the pathway to more free time, just not by acting more freely. you have to have more disciplined time management. put a schedule out. stop wasting time doing things that don't benefit you, going from youtube video, to youtube video, and you waste two or three hours of time watching kittens running around the kitchen in garbage. neil: maybe you talk to my kids. discipline for freedom. retired navy seal. everything else.
you do not mess with this guy. maybe you don't mess around with what we've got, taking advantage of it. meantime we're getting a sense right now that this package, this tax package, republicans are confident they have the votes, certainly in the house to pass it. we'll get the senate working out its own details. they think by christmas, this could all be done. so that in the new year, you will start seeing these tax cuts pop up in your paycheck. it is an aggressive timetable. they're very, very confident they can deliver. more after this.
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neil: a republican new york congressman going to do. congresswoman, state and local tax deductibility is gone, not in this, and they're sticking to that. are you a yea or no vote? >> i am, let me back up. you know, we were told to pound salt, right? but we got some of it back. we got a property tax deduction up to $10,000 cap. >> right. >> that's progress and overall i like a lot of things in the tax bill. i don't like that income tax, our state income tax is not deductible but there are other ways. we gotten rid of alternative minimum tax which helps a lot of middle income taxpayers, doubled standard deduction. in terms of middle income taxpayers there is a benefit. i like we got the child care credit moved up. it was $1000. i wanted it to go to 2,000 or 2500. we got it at 1600. that is big step. i worked with ivanka trump on that issue.
we're happy to have a win. at least we got an increase. this isn't over. repatriation of money coming from overseas is great. we're keeping a lot of good things on the corporate tax side. business side. neil: all of that taken together, would you be more of a yes than a no, what? >> yeah, i'm more of a yes than a no right now. neil: okay. >> i'm still fighting for new york and my taxpayers. my district looks a lot better than some down state taxpayers, overall we're getting benefit. we'll see tax relief. i would like to see some more. we need to grow the economy. so there is really good incentives in growing the economy but as far as, we're eliminating the estate tax for example, in period of six years. that is a good thing. i have a bill i cosponsored should eliminate family farms and business owners like me. we're still fighting the fight. it is still a proposal. it has to go to the senate. senate has got to do with it,
god knows what they do. comes back to us on reconciliation. that is where we are. neil: here is the thing that is weird. obviously you guys, talking about republicans, made a lot of efforts here not to make it tilt to the rich outside of the estate tax thing which we phase out in number of years, not right away. >> right. neil: you can make the argument for that is something that is far off. but i don't hear any democrats singing praises of this measure. so do you think your colleagues went through enormous hoops for nothing? >> i think that no matter what we put out, if we tax the rich and double the rate that obama put in, we're leaving rate the same, which should make them happy, if we doubled the rate, they would be unhappy and scream we're helping mills nays and billionaires, the democrats are economically illiterate. they don't understand growth. they don't understand people have aspirations and have aspirational economy where growth is good. we can't be worried about their demagoguery at this point. there is a lot of good things
for growth and bringing tax money back from foreign countries. i'm in a district that is the rust belt of new york. we once were, we are where, as i said, the erie canal brought on the industrial revolution. it was dug first in my distribute. we've lost manufacturing jobs. we need to bring them back. we need to get our companies restarted here. from that aspect it is good. high income earners are not happy. there is never enough tax to please democrats. which never tax the rich enough, no matter what we do. neil: i talked to members of both parties over the course of the day, and one of the things, congressman, say not family-friendly, despite lowering rates for everyone except the rich, they point to things, you lose the ability to itemize deductions for medical expenses, even though you point out you're doubling standard deduction. you lose deduction for student loan interest. you lose deduction or tax credit you get for adopting children.
that makes it increasingly anti-family. this is coming from democrats. but what do you think of that? >> i don't agree with them. first of all its not anti-family. we're trying to simplify the tax code. we're trying to give middle income payers a break. in my district, middle income payers are going to get a break. honestly, not as big i would like. definitely a tax break. it will encourage people to be involved in small businesses, to continue to grow the small businesses, as i have said, and we know the stats are there, nearly 70% of new jobs created in this country are created by small businesses. incentivizing them to grow, is really way we have to go. the middle income taxpayers will benefit here. we're trying to simplify it. look, we got rid of the alternative minimum tax, which was a catch-all for the deductions. so that is going to simplify the tax code. again, it is not perfect. i would love to see our income tax or compromise on
deductibility of state income tax because it is so high. i again put the blame squarely on albany. the governor, progressive democratic agenda one party rule in albany, that forces huge unfunded mandates down to our taxpayers, huge costs, huge expenses is, huge pension costs. we're at least getting something on property tax side. i will fight to see if i can get that exemption raised. in my district, our property values are low. let me tell you something about my district. every single one of my counties i represent in upstate new york, they're in the top 36, highest based on value, highest property tax counties in nation that is unacceptable. that is albany. they have to change their ways. they have to start respecting taxpayers, and they don't. they don't. i know. i worked there. i know how it goes. neil: you quit a very lucrative gig to do what you're doing now. >> no. thank you very much. neil: to the congressman's point, 11 no votes on the
budget. that came from those largely from these very high-taxed states. president right now, oval office meeting with some con aggressional leaders and representatives from singapore and also and broadcom. let's listen in. >> with daca, with some senators, we have great things about that, hearing about that very soon and the big thing of course is tax cuts and jobs. that is happening very rapidly. it has been met with really a great response but i want to thank everybody for this great day. it's a great day for the american worker in particular. over the past 10 months we've witnessed something remarkable happening to our country. have you all noticed? a lot of change. a lot of difference, right, kevin, would you say? we're just hitting a another record right now on the stock market. we've hit close to 60 records on the stock market since november the 8th, that very big day. the stock market is at an
all-time high. unemployment at the lowest level in almost is 17 years. we now are had two straight quarters of 3% or more economic growth for those that don't understand that, this is a, tremendous increase over where it was. we're going higher. jobs have been offshored, to so many countries that we're now coming back. now those jobs an those companies are coming back to our great american hopes i want to thank the majority leader kevin mccarthy for joining us this afternoon. he has been so terrific in so many ways. he is working hard on tax cuts, in fact so hard, i'm surprised to see you here. this is truly a great company will we'll hear from in a few seconds. you have been very business day. >> i just left the press conference. >> you did. that was a great press conference. we're thrilled to welcome broadcom limited, and its ceo to
announce to the white house that broadcom limited is moving its headquarters from ink is pour back to the united states. so -- from singapore back to the united states. i want to thank you very much. that is something great. i appreciate it. broadcom limited is a 100, fortune 100 company. one of the really, great, great companies. they manufacture technology and parts. they employ over 7500 american workers in many states across our country. we're looking forward to see that number grow very substantially which is now anticipated to do. they move back to the united states and to the united states is something very, very special and very important. and you've been seeing this happen with numerous companies and at a minimum expansions and sometimes plants. with this commitment more than $20 billion in annual revenue will come back to our cities,
towns, and the american workers. today we're joined by some incredible men and women from their manufacturing plant in the great state of pennsylvania. that is a state i like very much you know. [laughter]. i love pennsylvania. i went to school in pennsylvania your skill and craft, take bride in your job. because of you, our nation's trademark, made in the usa is respected all over the world once again. we're telling people, made in the usa, we're bringing it back. when i was growing up, i was a young boy, made in. usa meant something. well it means something again. moye administration is working every day to make the united states the most attractive place in the world through business, so that more and more companies like broadcom, come back to our shores, grow their businesses and create more and more american jobs and you see it
happening on a daily basis. that is why i have already slashed more unnecessary job-killing regulations than any president in history. that includes their entire term. i've only been here for about 10 months. we're not finished yet, believe me. we're working to give the american people a giant tax cut for christmas. we're giving them a big beautiful christmas present in the form of a tremendous tax cut. it will be the bilge of the cut in the history of our country. it will be tax reform and it will create jobs. today the house ways and means committee unveiled a historic tax reform bill that will create tremendous prosperity for our nation. we will provide a massive tax cut for american families. we will make the tax code simpler and fair. both simplification.
we will restore our competitive edge by reducing business taxes for the first time in more than 30 years. and we will bring back trillions and trillions of dollars that is now parked overseas. so money can be put to work rebuilding the united states of america, as opposed to rebuilding other parts of the world. again i want to thank broadcom ceo for joining us today. he is a highly, highly respected man and a great, great executive, the job he has done is an incredible job. but what he is doing is committing to massive amounts of american jobs. when he told me about this move he said, mr. president, we want to be an american company. we're hearing that all of these things, we're hearing it more and more, frankly i'm hearing it every single day.
people are coming in at levels you will see over the next short period of time. you're seeing it so many ways. when you look at what is happening with the stock market. look at stock market an indexes are highest they have ever been. business enthusiasm is at highest levels. we're hearing everything from tax reform and spearheading of the it is a feeling for our country haven't had a long time. they see the tax move. i believe we will have it done before christmas. i consider that to be one of the great christmas presents. not just reform and not just tax cuts but we will be creating jobs like you have rarely seen. in this country. so we never get tired of that pledge because we never tire of returning wealth to our country,
jobs to our citizens, and honor to our great american workers. i honor our workers. these are incredible people. they have worked hard. you go back 20 years, essentially they haven't had that salary increase, that they should have had. but now you see it, wages are starting to rise. so we're very proud of our country. hock, i like you to say a few words. on behalf of folks not only folks from pennsylvania behind me, but all of the united states, i want to thank you very much for choosing us. appreciate it. thank you. thank you, hock. >> thank you, mr. president. thank you, mr. president. thank you for having us here. truly an honor, rare honor. before i launch into something else, let me say my mother could never imagine that one day her
son will be here in the oval office, in the white house, standing beside the president of the united states. thank you. >> and my mother, too. [laughter]. >> you see, back in 1971, i was just an 18-year-old skinny kid growing up in malaysia. but, what i had just gotten, i had opportunity to enroll in the best engineering school in america, in fact in the world, mit. and, my parents, could not have afforded to send me to college, much less mit. so it is rather amazing, really amazing to me, even today, that this great american educational institution took a chance on me,
sight unseen, gave me a scholarship to pursue the american dream. so my appearance here today, in large part, has been inspired by my desire to give back to this country, which i have received so much from. i run broadcom today, and broadcom is the embodiment of the legacy of innovation of three great american technology leaders, bell labs, hewlett-packard, and more recently, broadcom corporation. but in eras past, when the conditions in this country made it hard for companies to complete in global markets.
these companies globalized and moved offshore. i am american, nearly all my direct managers. all my and 90% of my shareholders. today we're announcing that we're making america home again. [applause] >> thank you. our commitment, to redomicile into the united states is a huge reaffirmmation to our shareholders, to the 7500 employees we have across 24 states in america today, that america is once again the best place to lead a business with a
global footprint. thanks to you, mr. president. business conditions have steadily improved. the proposed tax reform package will level the global playing field and allow us, to compete effectively in worldwide markets. our move to domicile into the u.s., will, will bring in $20 billion of annual revenues into this country. okay? from this base here in the united states, each year, we will invest over $3 billion a year in research and engineering. and another $6 billion a year in
manufacturing. creating high-paying tech jobs similar to the ones held today by my coworkers behind me who have made the trip down from pennsylvania to be with us here today. so again, thank you, mr. president. i look forward to working to create, to achieve the american dream for everyone. thank you. [applause] >> thank you, everybody. >> all right, just checking if the president has anything else to say here. broadcom making it official, it is moving its headquarters up from singapore back to the united states, and the company employees 7500 american workers as it is. how many would be involved or part of those moving from singapore back here? let's listen.
>> see you in a little bit to announce the new head of the federal reserve. thank you. see you in a bit. thank you. neil: i violated my own creed here, folks to interrupt the president when he's still there in the room and the video is still there. that's on me. all right, we're going to wait to hear from the president commenting not only on the tax cut situation. he likes what he's hearing, kevin mccarthy, part of republican leadership after the republican press conference you saw about an hour ago, he's also going to announce we are told, jerome powell, the former governor, former investment banker to be the head of the federal reserve later on today. that's an interesting development because he's not an economist. doesn't have a doctorate in economics. the first fed chairman who wouldn't have such a background in decades, and also one of the richest likely fed chairman we've ever seen, a multimillionaire, working in investment banking, the carlyle
group et al. blake burman at the house, how they're going to be selling these tax cuts, but what are you hearing, buddy? >> neil, they are very pleased at the white house with how this all unfolded today. you saw the press conference at the house, the bill posted and you got the president able to tout a jobs announcement on top of that and the fed announcement later today as i mentioned. as it relates to the tax bill and speaking with people here, look, this is a process, we understand that this is a process, it is a long process going forward, but step one of this process had to be the house ways and means committee, getting this bill out. they did. some 400 pages and they now know that they can move forward, and there is a lot of pleasure at the white house. when you look at the actual process that everyone is referring to, now the house ways and means committee has to mark that up. the senate has to vote on it, and the senate gets to do exercise that this somehow has to be merged, a compromise
reached and a bill put forth on the president's desk. that is the plan, and as you heard from the president a little while ago, he wants that done within the next seven weeks, within the next 53 days before christmas. here was president trump. >> they see the tax move and i believe we'll have it done before christmas, i consider that to be one of the great christmas presents, and not just the reform, and not just the tax cuts, but we will be creating jobs like you have rarely seen in this country. reporter: neil, there are still a lot of issues among republicans that need to be worked out here. chief among them, this state and local tax deduction, what the caps may be, what may or may not be deducted. i was speaking with a white house official that this would be addressed, not necessarily changed but addressedf the word specifically used and then there is over in the senate side today, for example on the child care credit, marco rubio front and center on this, he
accept the out this tweet, he said house tax reform plan is only a starting point. $600 child care tax increase doesn't help the working family. what you are seeing is the reization that ts is a press step one, and the present wants ts done within seven weeks, neil? neil: thank you, bla burman, back and forth, giv and take on thesend otherises, but bynd large, do yoee this passing at least where you are, e house? >> neil, this is a good day, and yes, i see it passing the house, and look, my friends in the senate, we have passed things before, it's time to get on board, we're going to pass tax reform and work together. i want you to stop, neil, there's a sound, i heard it walking over here, the tentacles of the irs getting out of our pockets further so our money can be used for the
things americans want to use it for. hard working americans want to spend tax dollars going to the american government is going to be in their pockets. that's the sound of freedom. neil: obviously, you are ham strung a little bit, congressman. you wanted to be aggressive on the tax cuts, of course, you have to as part of budget reconciliation, and just majority, not 60 votes, you have to stay within the budgetary constraints here. some are saying that the tax cuts don't go far enough. outside of what you're doing on the corporate rate, bring it down to 25% that this wasn't quite the big revolution that many thought it would be. you say what? >> i say get on board, i say in 30 years of waiting for this, we're looking at, and again, for people looking at this at individual aspect of it or other pops in, there trying to take it out saying it's not far enough, not this. let me say, this for the american people, time we give
them relief. we're taking the first $24,000 of a person's income and say no longer will the federal government put tentacles on that. $12,000 for singles and deduct expenses for capital expenses, for the naysayers, the question is, this do you not want people to have more of their money, do you want more business to go on across country? if the naysayers are doing that, explain that to the american people, that's a challenge to the democratic friends. you explain why you are not for letting american individuals and businesses have more of their own money. neil: have any your democratic colleagues say they are on board with this? >> whether they say that or not, that's up to them. in the next few months, i'll be happy to talk about that here with you or anywhere else and say why wouldn't you be for giving more americans freedom. why wouldn't you be for a fair
and simple process, and if anybody wants to see our bill go to fair and simple, we got that on the tax bill. they can look at this. they know what we're working on, that's the hard working american people. neil: quickly, sir, you open as colleagues have expressed, increasing this mortgage interest deduction or the tax deduction that's the $10,000 ceiling. a lot of folks have said wait a minute, i'm going to lose my state and local, you know, tax hit. i want something a little bit more than 10,000. what do you say? >> i think look at it from a total picture. kevin brady said they're tweeking and putting the final touches on this. we got to look at this, when you are lowering rates, looking at things that you are going to have deductibilitiwise, this is something we don't talk about enough. there's only 40% of people itemizing. by the new plan, that could go into the single digits. you're talking about thing
we're adding. people who don't itemize now are going to get a mortgage deduction because they haven't been taking it because they haven't been itemizing. people look the the whole bill, look what it does for the country and think about where we're heading in the future. neil: congressman, thank you very much. >> good talking with you. neil: with me home depot ceo anthony shea. i was thinking of you guys, closely watch whether you this ignites economic activity, people inclined to take out loans, more inclined to look at extra wherewithal, how does this affect what you're doing? >> hey, neil, how are you? >> there you go. what do you think of this? >> the uncertainty got our industry a bit confused. keep in mind, that the average home price in this country is well below $500,000. this only affects minority of the current homebuyers in the market today. neil: you're talking about the limits on deduction for mortgage interest, it would be
500,000 rather than a million. do you fear that the deduction is on its way out? i remember, it wasn't that long ago we dropped it to a million. seems to be going away? >> well, you know, who knows, right? >> yeah. >> as an industry and our company is certainly keeping close track of it, and certainly if it passes, if it gets reduced or eliminated, the market will react and will make necessary adjustments. it all comes down to affordability, and that is what is the monthly payment, what is the income, what is the overall income doing nar consumer and household debt and ultimately have to remember as a renter, there's no deductibility either. neil: you know, it's interesting, i understand the housing industry is concerned you lose a special mortgage interest deduction or regular deduction doubled, they don't have to fine tune, it less inclined potentially to look at homes because the writeoff
isn't the draw as much as the net deduction relief they're getting. is that overdone? i wonder if the fears of that are overdone, in the housing industry, people most part want to own a home, they like the idea of home ownership. the tax draw isn't quite the draw. it's people like to own where they live. >> certainly. it's absolutely nice to have, right? at the end of the day, the math works out when you have some sort of deduction, but a home is still a home where families grow up, kids do homework, ride bikes on the street. it has a lot more emotional motivation rather than the tax deduction, that said, we love to have that and keep that. neil: now given the fact that so many customers would see net take-home pay rise, obviously, more of them, i would imagine, and you can correct me if i'm wrong, would qualify for loans, maybe bigger loans would normally be the case. what do you think?
>> yes, and the current economic development and the fact that the economy is going in the right direction, we're seeing lots of activity on first-time home buyers and step-up homebuyers. and housing continues to be an inventory issue and the rise of overall housing prices. if you look at overall housing prices have steadily increased over a few years, and if you look at certain pockets such as california and the coastal cities, it's becoming very difficult as far as affordability. neil: meanwhile, you're looking at interest rates, i'm sure you looked at possibility very soon, hearing of a new fed chairman coming in. do you worry about rates getting prohibitively higher? everyone is thinking another hike coming in december. market rates are another thing, you and i have gotten into that. what do you think? >> well, this is over three decades for me now. one thing i do know is i'm always wrong predicting the future.
we need to understand that it's going to go up and it's going to adjust. all types of different economic environments and factors. but going ahead on the steady basis, there is always the affordability factor that is important and folks are going to need housing over a period of time. neil: all right, we'll watch closely, thank you very much, the loan depot chairman and ceo on this busy, busy tax day. i've been communicating with a number of people on the hill talking about the poor 1% and how they're going to lose out. one of them pointing out to me, neil, you have to remember the top rate will kick in at a million bucks, the 35% rate at 260,000. so net net, they are giving that at a million dollars you are still looking at up to $34,000 in savings, add the $10,000 in the mortgage cap, and you have 44,000 extra
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. neil: all right, we're looking for a couple of things, folks, on this, on this day we announce the tax package out of the house ways and means committee. what democrats are saying, very, very little, what we got early on from the likes of chuck schumer and nancy pelosi was tepid by their standards. class warfare argument, heard a little bit from them, not too many others. remember the hoops the republicans went through to make it look it wasn't skewed to the rich. i have noted democratic staffers have been pointing out the fact the estate tax doesn't go away and another few years before it does, so that's something that presumably benefits the rich, so the rich are getting away with that but the high rate stays high, and for those in that bracket, not going down any time soon, not going down at all. former minnesota republican governor tim pawlenty joins us
on this. i'm hearing from a number of republicans who are concerned, those from high-tax states that don't like the idea that the deduction for state and local taxes is gone, and secondly from people like marco rubio who argue that a child tax credit he wanted to see $2,000 per child is going to be more like $1600 a child. still up from a thousand buck, so it goes, hand wringing back and forth. what do you think? >> neil, it's a good day for those who want to simplify the tax code, a good day for those who want to give relief to middle income america, and good day for those who want to make american businesses more competitive and get the economy moving above anemic levels and more. as to the specific points you mentioned, the beginning of a process, has to go through the house plus the senate. the state and local tax deduction didn't completely get eliminated, there is preservation relating to property taxes and as to the
child tax credit, that's important, we should increase the child tax credit, senator rubio and others may succeed in getting it increased. a nice bump over where it was, directionally very positive and going to be a very important bill and process for the economy and for the benefit of the american people. neil: you are right about that, that was at $1,000 per child, now up to $1600 and could move up. you mentioned what's happening with state and local taxes. do you worry that a lot of your republican friends, especially the 11 who voted against the senate budget in the house because they were concerned about that provision and how it would come back to haunt them, that they could still be no votes, they could still say this isn't worth it? >> they might be, but as you were alluding to earlier when you were talking about the mortgage interest deduction and a few other provisions, it's important to look at the net effects of this bill on a particular household or a particular individual or a particular business.
so if you're losing something over here, it's an important question to ask but over all, are you gaining, overall are you better off. as people complain about specific provisions, make sure we look at the net effects of the bill on them. and for people concerned about state and local, remember, the standard deduction is doubling. neil: absolutely. >> remember the rates are coming down, so may still be negative for some people but for a bunch of people the overall effects could be very positive. >> i think they were crunching some numbers to say it would hurt the very richest, but that was factored in. >> but as you mentioned earlier, that bracket of 39.6%, though the rate isn't coming down, the income level at which it begins to apply grows a half million to a million dollars there. may be net benefit in all of that to the positive. neil: governor, is it your sense that the party and those who have concerns about this, those in high-tax states, those like marco rubio want a more
generous tax credit for kids when. push comes to shove, the alternative is probably being a minority party after next year's election? >> absolutely, neil, i think it will be a rare republican that considers voting against the final bill for that reason. this has been the political holy grail for the republican party for a generation on the failure of not repealing and replacing or improving obamacare. if they were to fail on this, i think it would be politically cataclysmic for them. they'll do it because it's a good idea, because it's needed and do it also because they better, it's their own political survival. neil: governor pawlenty, good seeing you, thank you very much. >> thank you. neil: remember robert prechter, he doesn't look at day to day news events as much as he does the market in waves. these big waves and said we've been in this buying bullish wave for a long, long time and about to stop. it's going to go into another scarier wave.
take a look. >> i think we're going to enter a bear market that people are going to remember for a long period of time. it's likely to be one that will make its mark on the charts. neil: all right. a bear market is a decline of 20% or so from highs. >> i think it's going to be quite a bit larger than that. neil: 20% would be close to 5,000 points from these levels. what are you saying? >> i think it's -- well, we talked about going back and seeing similarities to 1966 and similarities to 1929. so i think this is just as important as those two. neil: the good thing about talking about that right before lunch is you don't feel like lunch afterwards. he did the trick there. what does jonathan hoenig think of all of that. he's saying the news cycles notwithstanding this, the cycle says, this cycle done. >> we are certainly due for a downcycle. i don't know if it's going to be 5,000 points or 20% as mr. prechter oftentimes
predicted, but this market has been on a tear, yes, since the president has been elected but for years prior to the president. neil: absolutely. >> being elected. i have to say ironically we talk in the markets the idea of ringing the bell, calling the top. fact that the president now is trumpeting the all-time highs so regularly in speeches gives me indication that maybe the top is closer than the bottom right now. neil: interesting you say that, one of the other things prechter said, he's pretty apolitical to my knowledge, interviewing him all these decades. he said if you're president, you do not want to be bragging about markets because they could easily turn you on, but you shouldn't be obsessing over them either. i pointed out the president can rightly point to this and say a lot of this is me and maybe it is, he says it is very bad because eventually markets go south and you have to own that as well? >> neil, what's been powering the market has been the companies that make up the market. it's been the facebooks and the
amazons and the innovation of the terrific american companies. extent that the president can make that case that tax cuts, the deregulation, he can take credit for that, but your point is exactly right. markets are irrational, can stay irrational for a long time and best not to get involved in the day to day machinations, that's not what a president should do. neil: i remember ronald reagan saying markets are better than when i came to office, tax rate is better than when i came into office. he didn't get involved in the day-to-day. if they don't get the tax cuts or something happens that prevents it from happening, then what? >> yeah, yeah, i think that's what worries me neil, starting to get indication of the tax cut, it's going to be a process, but a lot of money has been invested since the inauguration predicated on a more business friendly environment, lower regulations,
lower spending and lower taxes. my fear is given the incredible run-up we've had so far and the low level of fear in this market, not a lot of people. people getting more and more enthusiastic, after nine straight months of gains, time to take a little money off the table, given the run we've had. neil: jonathan, good to see you, my friend. >> you bet, neil. >> the freedom caucus, very, very crucial role. 40 member strong, largely conservative republicans who by and large seem to be liking tax cuts and wanted tax cuts for corporations to be bigger. in other words, a lower rate than the 20% that we're looking at right now. his read on where this goes here, now. hey, you every talk to anybody about your money? yeah, i got some financial guidance a while ago. how'd that go? he kept spelling my name with an 'i' but it's bryan with a 'y.' yeah, since birth.
that drives me crazy. yes. it's on all your email. yes. they should know this? yeah. the guy was my brother-in-law. that's ridiculous. well, i happen to know some people. do they listen? what? they're amazing listeners. nice. guidance from professionals who take their time to get to know you. i love hanging out. with my friends. i have a great fit with my dentures. i love kiwis. i've always had that issue with the seeds getting under my denture. super poligrip free. it creates a seal of the dentures in my mouth. even well fitting dentures let in food particles just a few dabs of super poligrip free is clinically proven to seal out more food particles so you're more comfortable and confident while you eat. super poligrip free made even the kiwi
. reporter: welcome back to cavuto "coast-to-coast," i'm nicole petallides on the new york stock exchange. big news pertaining to time warner and at&t. both stocks to the down side, time warner is off earlier lose, now down about four bucks at 94.38. and back and forth action. today, this all in the news and heavy volume on these stocks that have been trading that the department of justice is now looking into the deal between the two. the possible deal, an $85 billion deal most likely saying a few things that it is considering antitrust lawsuit against at&t's acquisition of time warner. at&t officials have met with the department of justice in recent weeks. though the department of justice say that the companies are not close to an agreement, and that, in fact, there is no final decision at this time, and they'll be delaying any sort of decision or ruling until the end of november. with that, we've seen heavy volume and trading on the two
companies. both are lower at this time. neil? neil: all right, thank you very, very much, nicole. people doing a lot of the crunching of the numbers on the tax cut, what's it going to mean to you? the average family in america, those who want to see the benefits with smaller companies, et cetera. gerri willis doing a lot of number crunching, what do you got? >> we want to see winners and losers. we looked around to see what we could find two. examples. first off consider 59,000 a year with two kids, the larger standard deduction, $24,000 and enhanced child tax credit and family flexibility credit, that results in a tax bill $1182 lower, their bill would drop 400 bucks from 1582 last year. that's a big winner. other winners include small business operators who qualify for a pass through tax rate of 25% and retirees who would benefit from the doubling of that standard deduction.
another couple will pay more, they're the loser, consider a couple earning $325,000 with two kids, own a large home and pay 5% and have nearly a $14,000 property tax bill. they max out retirement contributions and make way too much money to get the child tax credits. tax liability rises by 1% from $69,328 from $69,843. those paying more will be people in high-tax blue states with high earner. neil, back to you. neil: gerri, thank you very much. we are minutes away on a white house briefing, the president will be meeting with the republicans who put this thing together, the freedom caucus chair. congressman mark meadows joins us now. good to have you. >> great to be back with you on an exciting day on capitol hill for the american people and the economy. neil: all right, so you like what you see? >> yeah, it's still work in progress, obviously, just met with the speak, he was on his
way to the white house as you mentioned to meet with the president and other ways and means members, so there's work to be done still. neil: what specific work has to be done? >> yeah, i think probably most of the work is looking at making sure the pass through rates benefits all pass throughs and the other side of that is looking on the territorial agreement to make sure that we don't create a de facto minimum tax, something we've been advocating for to make sure we can be competitive internationally, we're working on those, still digesting all the legislative text to make sure we understand it properly, but getting close. neil: i don't want to get into the weeds here, you are far smarter than i, i would look like an idiot. i know on the pass through thing, what i heard, chairman, is a lot of your colleagues wanted to avoid some of the well to do who are stuck at higher rate, using that as a vehicle to pay a lower rate. in other words, 39.6% or 35 to
end up paying 25%. all sorts of barriers, blocks, were put up to prevent that sort of thing, and thought of what's happening at keeping the top rate at 39.6% for the million and over crowd. republicans are spending a lot of time trying to make sure this isn't tilted to the rich. do you think for all of that trouble you got one democratic vote? >> i don't think we're going to get many democrat votes. i don't know that we'll get one democrat vote. that's why we've got to concentrate on making sure it's good for the american people, and really good for every taxpayer. i mean, you know, i have not found anybody in washington, d.c. who is more efficient at spending the american taxpayer dollars than they themselves, and so it's critically important we put more of that back into their pocket and so i don't know that the adjustments that have been made will bring any democrats across, certainly not in the house, and i'm doubtful in the senate.
neil: do you think that your party wasted its time trying to do so? >> well, i think what we have do is have to focus on that one individual that might try to game the system and make sure we've got guardrails there to protect that. outside of that, though, is we don't need to expand it so much that it hurts small businesses where a lot of the economic growth will come from, and so that's why i say there's still work to be done, i can tell you there's a real open ear with chairman brady and the speaker on this particular issue, and i'm still very optimistic that we'll pass this in a couple of weeks, obviously the senate will roll out their bill in a week, we'll have to come together and get that, but put together in terms of a compromise, but i still fully expect it to be on the president's desk before christmas. neil: we were hearing from a number including cathy morris rogers and others saying this would already, assuming the approval goes as you stipulated
chairman in the house and the senate, signed by the president before the year is up that right away next year's paychecks americans would be seeing it. i assume by her saying that, it's not a this year event, not a retro active event? >> right now the way the plan is, it's not retroactive, the deductions will show up in next year's paychecks, but the other part of that, neil, is this. that's not a totally done deal at this point. i think there are a number of us who believe that it should be retroactive, we haven't given up on that. it becomes what are the trade-offs, find the pay fors, for some of that. that's not a closed issue, but the way it is right now, it's set to go into effect on january of next year. neil: doesn't look likely, we're hearing from senator marco rubio the child tax credit which was hiked to $1600 a child, he wanted more, i think he wanted $2,000. is this going to be a
contentious issue? what do you think? >> i don't think that's going to be a stumbling block, it is 1600 in our bill. if the senate comes out with a $2,000 mark for the child tax credit. i think in the end, there is an area that could compromise on that. again, we're trying to put more money in working families' pockets and that particular issue is one that we're focusing on very closely, so i wouldn't say that that is such an obstacle it will take down the tax reform bill at this point. we're hoping to have good discussions to hopefully reach a compromise. neil: congressman, this is just my read, but i think there's a strategy involved here that this is not happenstance or even haphazard on the republicans' part to eventually not use the tax code to favor industries. even by scaling back the mortgage, you know, deduction
by limiting it to new purchase, half million dollar mortgages from a million now, that has already come down from what used to be limitless not too long ago. right. neil: and other provizeos, that there is another stab at this where this is just the start, and there are many who will like that, others who will get very annoyed by that. am i wrong here? >> i think you're right. isn't it time the well connected are not the ones that get the best benefits. it's high time we allow the markets to drive the economy. it's what made us great you. >> know what the home builders are saying, realtors are says, bankers are saying, and sure enough i'm sure you predicted this and expected it, they're not happy. >> i met with some of them yesterday. listen as a guy who built homes and was in the real estate business, there's no one who
understands what drives wealth and the economy probably better than i do on capitol hill. neil: do you think anything you guyed cooked up is going to hurt that industry? i can't see it doubling in the deduction would necessarily help or hurt housing. >> i don't see it hurting or helping that. there are some things that are still being discussed that hopefully we'll make sure that we continue good job growth in the housing and real estate market. but at this point, i don't see anything that is so troubling that can't be fixed to make sure in the final bill that passes that we get an economy that's going. the preliminary numbers we're hearing in terms of gdp growth over the next ten years are extremely promising. i'm not at liberty to share those but i can tell you i was very encouraged by the preliminary numbers and hopefully get the final numbers in the coming hours where all of a sudden the markets will react to that to see that -- neil: preliminary numbers from whom, cbo? >> when we look at scores,
where they're scoring this, have you tax foundation, joint tax and others where they're looking at gdp growth over a 10-year period, and it's all about jobs, and i'm very encouraged with the numbers we're hearing, so it's a great, great start. we will finish strong and make sure that we have this all happening. neil: do you think that just the constraints of the system whether it's the bird rule or what you have to do in reconciliation sort of, you know, tied you. >> without a doubt. neil: and i don't think people appreciate how that influences. the numbers have to crunch out the way they have to crunch out so you make enemies on both sides, but what do you think about? >> you are spot on, neil. when we look at this, what we've got is a 4 1/2 to $5 trillion tax package that we're trying to work with dynamic scoring and fitting in a 9.50
oo $1.9 trillion box, it is the arcane rules creating a situation which makes it almost impossible to do what we need to do. so i've talked to my senate colleagues to encourage them to open that process up, get to a straight 51-vote majority in the event. the american people are tired of excuses. i'm tired of excuses. let's get this economy going. it is the rules and the trade-offs that we're having to make to actually fit the tax reform bill through. neil: i tried to explain whether on the right or the left, those are the constraints, and couldn't be as aggressive as maybe you wanted or the spending cuts couldn't be as aggressive or materialize as you want. but i did want to get your take as well on the chairman and his thoughts on this. ever since he expressed concern about losing the deductions that people make for 401(k) plans and the like that, mysteriously disappeared. something that colleagues were
considering. is the president on board with everything the house has cooked up here? at least the house ways and means committee cooked up. with just an utterance, he could torpedo this. >> i've had a number of conversations with the president. if people are underestimating his engagement here, they're making a huge mistake. neil: i'm not saying he's not engaged, he might hit this if he doesn't endure? >> i welcome his engagement. if you looked at 401(k) issue, it is not a smart move. he was make the right move. we're in good shape. neil: thank you very much, chairman. the white house briefing, right now. >> you are very sad since we're not going to get a lot of days like this together over the next couple of weeks since we'll be traveling. for those of you on the trip, i look forward to seeing you. for those of you that aren't, we're going to certainly miss all of you and your questions. it's a busy day here at the
white house, like most days here, as you all saw, the president was excited to announce the broadcom limited is coming back to the united states, moving their company back here from singapore. ceo credited the president's economic agenda for once again make the united states the best place in the world to grow a business. he also noted that the tax reform plan which was rolled out this morning will make it easier for them and other companies to do exactly what the president has promised. bring back our jobs, bring back our wealth, and bring back our great american dreams. this morning, the president applauded the house ways and means committee for introduce thing the tax cuts and jobs act which is another important step to providing massive tax relief for the american people. our entire administration is working tirelessly to make good on our promise to the work people who built our nation to deliver historic tax cuts and reforms. the rocket fuel our economy needs to soar higher than ever before. now as you all know, the president is preparing to leave
the country tomorrow for a five country, ten-day trip to hawaii and asia. this afternoon, we have with us the president's national security adviser general mcmaster, who will preview the trip and take some of your questions. please keep your questions on topic. if you have other questions, the press team will be around this afternoon and throughout the next ten days while the rest of us are on the road. thank you so much. general mcmaster? >> thank you. good afternoon, everyone. >> good afternoon. >> tomorrow, president trump embarks on his longest foreign trip to date, and the longest trip to asia by an american president in more than a quarter century. this trip is a great opportunity to demonstrate america's and the trump administration's commitment to the indo-pacific, and our efforts to strengthen longstanding american alliances and expand new partnerships. the president has actively
engaged leaders in the indo-pacific this year to address a range of strategic issues, including most notably the north korean nuclear threat. since taking office, president trump has placed 43 calls to indo-pacific leaders and conducted bilateral meetings with japan, south korea, china, india, australia, malaysia, vietnam, indonesia, singapore and thailand. this historic trip will build on that ongoing diplomacy. the president's trip will focus on three goals. first, strengthening international resolve to denuclearize north korea. second, promote a free and open indo-pacific region. third, advance american prosperity through fair and reciprocal trade and economic practices. the united states remains committed to the complete,
verifiable and permanent denuclearization of the korean peninsula. president trump will reiterate the plain fact that north korea threatens not just our allies, south korea and japan and the united states. north korea is a threat to the entire world. so all nations of the world must do more to counter that threat. that is happening. but the president recognizes that we're running out of time, and we'll ask all nations to do more. in particular the president will continue to call on all responsible nations, especially those with the most influence over north korea to isolate the north korean regime economically and politically, to convince its leaders that the pursuit of nuclear weapons is a dead end, and that it is past time to denuclearize, and you will remind friend and foe alike that the united states stands ready to defend itself
and our allies, using the full range of our capabilities. the president will also use his trip to promote his vision for a free and open indo-pacific region. the president will make the case that respect for freedom of navigation and overflight, the rule of law, sovereignty, freedom from coercion and private enterprise and open markets is the best model to increase prosperity throughout the region, and to secure the freedom and independence of all nations. and, of course, increasing prosperity of the american people is always one of president trump's top priorities. throughout the trip, the president will stress his commitment to free, fair and reciprocal trade. he looks forward to working with partners across the indo-pacific region to ensure
that governments do not fairley subsidize their industries, discriminate against foreign business or restrict foreign investment. this will help increase trade, reduce unsustainable deficits and promote prosperity for the american people and the people of the indo-pacific region. a final point and a point that's often overlooked. this trip like all the president's engagements with foreign leaders builds on previous accomplishments and our previous diplomatic efforts. one example i'll provide is that in riyadh in may, president trump delivered a historic speech to the leaders of more than 50 muslim majority nations. the president will interact with many of the same leaders at aipec or asean. that he unveiled in that speech in riyadh. first, deny terrorists safe
havens and support basis. second, cut off their funding. and third, discredit their wicked ideology. i think it's time for us to recognize that there's been significant progress on all three fronts. raqaa and mosul have been liberated and will soon no longer control territory and populations as the united states has worked very hard with allies and partners to deny that safe haven of support basis, in this case, to isis. second, we should recognize there's been considerable progress on terrorist financing. as you saw secretary mnuchin's visit to the region last week during which he opened the terrorist financing targeting center. and then also you've heard a lot of leaders across the world and the president foremost among them discrediting this
ideology, this islamist or salafi jihadist ideology, and last week i think it's worth reading, saudi crown prince, the saudi crown prince's speech during which he called for a return to moderate islam. at the 50th birthday party the president will discuss how to strengthen partnerships across the indo-pacific to further efforts against transnational terrorist organizations, so this trip is an opportunity to build momentum toward shared prosperity and security, and i'm happy to take your questions. thank you? reporter: general, as you look at tools in your tool kit for confronting north korea, how much thought have you given to putting that country back on the list of state sponsored terrorism? >> that is an option under consideration, so the president's cabinet is looking at this as part of the overall
strategy on north korea, but a regime who murders someone in a public airport using nerve agent and a despotic leader who murdered his brother in that manner, that's clearly an act of terrorism that fits in with a range of other actions, so this is something that's under consideration, and you will hear more about that soon, i think. yes? reporter: will the president be using the fire and fury rhetoric in north korea that close to the border or meeting with putin on the sidelines? and will he be bringing up human rights? >> okay, so the president will use whatever language he wants to use, obviously, and what the president has done is clarified in all of his discussions the statements on north korea, our determination to ensure that north korea is unable to threaten our allies and our partners and certainly the united states. so he's done that with a great
deal of clarity in the past and i'm sure he'll do that during the trip as well. and that's been a great reassurance to allies, partners and others in the region who are literally under the gun of this regime. >> we shouldn't expect modulation in the language because of where he is? i don't think the president modulates language, have you noticed him do that? he's been very clear about that. let me just talk about this quickly. i've been aware of the discussions about his inflammatory, what's inflammatory is the north korean regime and what they're doing to threaten the world. i think there would be a grave danger if that regime didn't understand our resolve, the president's resolve to counter north korean aggression, and the president's made it very clear. reporter: is there a likelihood during the course of this 12-day trip that additional
multilateral sanctions will be announced pertaining to north korea? and the second question has to do with china. in your view, general, are they doing enough to apply pressure on the north korean government? >> so on those questions, what you've seen is a concerted effort to isolate north korea economically, and that's been combined with the major diplomatic effort that asks all countries to do more. there's tremendous momentum behind that now, and we've seen countries across the indo-pacific region but globally doing more to expel the, in effect, north korean slave labors who are a source of income for the regime to shut down a lot of illicit trafficking that was aimed to circumvent u.n. sanctions, and then also to shut down the money making enterprises in this regime. oftentimes run out of the embassies, you see expulsion of ambassadors, elements of the diplomatic corps and the
president welcomes it and appreciates it. we'll be asking more to do there. it is diplomacy and sanctions working together. china is definitely doing more but obviously not enough until all of us achieve denuclearization. i think what's really essential to remember about china's approach to this china recognizes this isn't the united states or anyone else asking china to do us a favor, china recognize itself is clearly in china's interest and all nations's interest to denuclearize the peninsula, that's because of a direct threat from a regime with a nuclear weapon but the specter of the breakdown of the nonproliferation regime. what if others in the region conclude they have to arm with nuclear weapons. that's not good for anybody. so i think china will, as it always does act in its interests, but this san area where interests are really clearly aligned. reporter: general? general? you mentioned in the opening
comments that the world is running out of time to deal with north korea. if you could expand on that for a moment. and earlier this week before the senate, general mattis was asked about the process by which the president might use nuclear weapons. he said, well, if we were to detect a potential launch from north korea, that is a scenario under which the president might act. do you agree with that assessment? has that been something that has been discussed here within the situation room where options were presented to the president? >> so, on the first, on out of time. we're out of time because approaches in the past have not delivered. have not delivered on the halting and reversing north korea's very dangerous nuclear and missile programs. and the approach in the past has been that we'll be happy with something, some people call a freeze for freeze or suspension for suspension, and that's the beginning then of a long, drawn-out negotiation
process or talks during which the north korean regime has in the past continued to develop nuclear capability, continued to develop its weapons. then upon delivery of a weak, nonenforceable agreement. the agreed framework in '94, what that does, what that agreement does is locks in the status quo as the new normal and, of course, north korea then breaks the agreement and continues with the programs. so we're out of time to do that because of how these programs have advanced over time. so what's time for is a really concerted effort to do everything, everything all of us can to resolve this short of military action, in terms of, in terms of scenarios, the president is always very clear, he doesn't draw red lines, he doesn't forecast directly or say directly what he's going to do, he'll do whatever it takes to protect the american people and our allies.
reporter: [ inaudible ] >> so what is clear is the united states will respond with all capabilities available to north korean aggression, you know, and they're appropriate to that scenario. reporter: tell me something that might be happening. >> gentleman in the back? reporter: thank you, general. there have been stories coming out of north korea and certainly parts of that part of the world that the north koreans have targeted the president in different ways. are you confident about his security, and have you heard any of the rumors about the targets of him by pyongyang? >> well, you know, whenever the president travels, our team does an assessment, it will secure the president, and we have extraordinarily capable forces in the region, and so that's routine for us is to take all of that into consideration. yes?
reporter: president xi has consolidated his power, does it make it easier to deal with him on north korea or harder? >> well, i think what the president doll is build what was already a strong personal relationship that they developed at mar-a-lago, and also build on a very substantive policy dialogue we had, especially on the security side. in mar-a-lago, and in meetings since then, at the g-20 and multiple phone calls between president trump and president xi, and i would highlight three elements of that foundation for the u.s., chinese, really the multinational approach to north korea. the first of these is a recognition that north korea is not just a threat to the united states. remember the old days, you would hear, this is really a problem between north korea and the united states. everyone acknowledges, china, especially, that this is a problem between north korea and the world. the second thing that's really critical is the universal acknowledgment that
denuclearization of the peninsula is the only acceptable outcome. no more freeze for freeze suspension for suspension, and the third thing is china's acknowledgment that it's acting in interest obviously, but china has a great deal of course of economic power. 90% of the trade at least flows in through china. so the implementation enforcement of the u.n. resolution holds promise but there's more that can be done beyond that, and time for nations to do more beyond what even has been called for in u.n. security council resolutions. yes? >> two questions, one just to follow up on the previous question. have you determined whether there will be a formal bilateral meeting with russian president vladimir putin during this trip? >> that's not been determined yet, we'll announce it if that's determined. reporter: secondly, focused on the asia trip, i wanted to talk about the president weighing in on the man charged with mowing down pedestrians in new york
city. called for the death penalty. have there been conversations in the white house how that could complicate prosecutors' efforts and help the defense claim that this person can stand trial? >> president wants to secure people from this threat and mass murderers like this, murderers like this, and so what he's asked is for options to take a look to assess. if our tremendous law enforcement teams and our judicial system has all the tools they need to be able to combat this threat to the american people. so what we owe now is options, options to take a look at to see if this is the time to reassess change or capabilities in this area and the area of law enforcement in particular. yes? . reporter: thank you, general. your opening statement, you spoke about a lot of different freedoms, i did not hear anything on freedom of speech,
freedom of expression, freedom of religion, and self-determination, democratic values. and what i would like to know are these things no longer as important to the united states under president trump? is he comfortable with authoritarian regimes consolidating power moving away from democracy as long as they can help us accomplish larger >> so what you hear when the president talks about sovereignty, sovereign nations protects rights of their citizens. you heard in just preview, what you hear much more in speeches, president statements he makes abroad, rule of law, promoting freedom, individual rights. this is extremely important to the president. i think we, what we ought to do is look at the president's record, okay? in syria, you have a regime that is a big human rights offender
obviously, in a number of areas. the murder, the torture, the displacement of six million people internally. five million refugees. mass murder of their own people with chemical weapons. who stood up against assad to prevent even further murder of chemical weapons? the president did. i mean if you look policy toward venezuela, a regime that is consolidating its grip on power and denying their citizens their rights. the president has taken a very strong stance along with our great latin american partners on venezuela. so i would just look at the actions, right? look at the cuba policy. look at the shift from the old cuba policy that enabled an autocratic regime and a new cuba policy, which incentivizes human rights and the development of free enterprise, for example in cuba. >> i actually asked