tv Forbes on Fox FOX News December 17, 2016 8:00am-8:31am PST
>> you think the small cap guys are running? they've been going like crazy. >> everything's going to run like crazy until it stops. >> that is profound, young man. more now. hoping for a massive tax reform on day one of the trump administration? you might want to listen to this incoming white house chief of staff reince priebus has to say about that. >> we're probably going to lead with obama care repeal and replace, then you'll have tax, we'll have a small tax reform package and then a bigger tax reform package at the end of april. >> steve forbes says don't delay, go big, and do it on day one. hi, everybody, welcome to forbes on fox, let's go in to focus to find out with mr. steve forbes. so, steve, why is it so
important to do it quickly? >> because you got to get this economy roaring again, that gives you political capital to give you the other things that need to be done, so go with big tax cuts, the lower the tax rates are, the more prosper by we get. if you go small first, it's harder to bring it up later. >> we're still waiting. well, bruce, i'm sure you're against the kind of tax cuts that trump is talking about, but there are some republican who is happen to agree with you. >> here's the deal. i sometimes wonder about the -- i don't know what the adversaries are, because the party of reagan not only seems to with donald loves the russians, but they love ballooning deficits and are escaping fiscal conservatism. i don't know how he's going to pay for this. he wants to pursue the wall. he wants to pursue all this
stuff and i don't see how he's going to pay for it. >> the fact is some republicans say it's more important to go after the debt, to cut the debt before you have tax cuts. listen to what mitch mcconnell have to say. >> my view on tax reform is that it will revenue neutral. >> that's code word for hold back until you get the cuts in spending first. >> come on, they never look at the issue that it's government spending that's holding a lot of things up. steve's absolutely right, you got to go full bore 100% in one shot immediately. and basically if you don't do the tax cut the way that trump wants it, you're going have to people like mitch mcconnell and bernie sanders come in and say you got to have payroll taxes, that's exactly what happened with reagan to save social security. >> back in the 1980, there was a
1986 tax reform that steve talked about which the rates came down to 28%. look what happened. everybody said all members of congress said we're going to lose revenue, result of tax -- in fact revenue increased 34% when you lowered tax rates. >> i would love to see some gift that pays for itself. but cutting taxes without cutting spending is voodoo economics. >> i showed you the figures. >> there's two ways for the government to sap resources from the productive part of the economy. they can take cash out of your wallet, that's a tax increate. steve forbes wants them to steal your credit card. >> and there are many examples, other than the 1980s, '60s, going back to the 1920s, where you lower tax rates, that brings more people into the economy d
aand earnings twaet increase. >> trump is making a mistake if he doesn't spend this political capital now. as steve says if you don't go big now, it's going to be much harder down the line. after that, i don't see why the american worker needs to make sure that congress has enough money to spend, we have a spending problem, not a revenue problem. >> we also have a tax problem, because taxes are too high, steve, we have the highest corporate tax in the world. some people are saying we should just focus on corporate tax cuts. >> plitzically that's a loser, saying you're going to take care of corporations and then people second. drastically reduce personal tax rates, go for it all. when you have the political capital. when the american people willsu.
i can't stand the idea that republicans are taking these green area shades out of moth balls and putting them on again. that's code for nothing will happen but more spending. >> the folks with the green eye shades. you go over the figures, there's folks that just look at the revenues, don't think of the extraordinary stimulative effect of tax cuts, that gets people back into the economy and it increases revenues in the long run. it's the pencil pushers versus the entrepreneurs. >> and it's the economists that maker weather men look good. a and why is d.c. in a boom? because they have so much spending. if they did this immediately, wow, trump's approval ratings would soar. he's got to seize the moment now, do it all in one shot. >> bruce, how do you explain the fact that in 1986 the tax rates
came way down, the top margin rate came down to 28% and federal revenues grew from 1986 to 1990 to $1 trillion from 769 billion. that's a 34% increase. with why did that happen? >> i do believe that there was back in the '80s there were some entitlement reform and your're not hear any of that out of donald here. he doesn't want to do anything with social security or medicare and the obama care, the affordable care affect does reduce medicare, which people don't forget. so -- >> you're not answering the question. >> he's not doing anything for it. >> john, go ahead. >> well, bruce is not answering the question about revenues, but i think the bigger thing that we have got to focus on, if republicans can't do this, if they're not men enough to say, it's important for all individuals to get to keep more of their income, what are we electing them for? this is crucial. don't go small on this.
why should we trust you with anything else if you can't even get tax cuts right. >> it's not just gdp, it's what make gdp possible. the new things that come along that we don't see today, that's crushed by high tax rates. >> another thing that happened in the 1986 reform, a lot of deductions were ended. they couldn't take advantage of all these special yields. that led to a lot more revenue coming in. doesn't that make sense logically it does. >> i'm with the deficit hawks, we're the brokest nation on earth, we're $19 trillion under water, we're living under the chinese and that can't go on. >> the way you solve the deficit
is prosperity, that means more revenue, if you're worried about the debt, increase revenue, we saw that by the late 1990s, we were reducing the national dead because we had a strong national economy. >> it's our money. the people know how to deal it with much better than government does. >> that's exactly right. and if that's the attitude that -- and i think republicans in both houses. look what kennedy was up against, even the gop was saying you need loopholes for the incentives, and kennedy said no way, lower the rate, and the economy bombed. >> don't. now some here are asking for trump's plan to cut two regulations for each new one is really enough to unwind all that red tape. we debate it coming up next.
live from america's news headquarters in washington. good saturday morning. the united states and china are now reportedly negotiating over the return of a stolen american under water drone. this according to china's defense ministry, it was taken in the south china sea. the pentagon saying the ship was trying to retrieve two drones near the philippines when the chinese took them. it is used mostly to map the floor of the ocean. meanwhile we're also getting rea action from president-elect donald trump who tweeted this morning. china steals u.s. navy research drone in international waters, rips it out of the water and takes it to china in an unprecedented act. we'll see you at the top of the hour, now back to forbes on fox.
for the first time ever, our federal register, the official database that lists all our official rules and regulations has topped 90,000 pages, and those regulations reportedly costing us $740 billion since president obama took office. you say president-elect trump needs to do more than cut two rules for every new rule. >> i love that he's pushing a deregulation plan, but it's not going far enough. we cannot get those in medicine, police, finance and banking to regulate themselves. >> bruce, this is really clogging up our economy, the competitive enterprise institute came out with a new study saying there are 35 regulations for every new law and hear specifically what they said happened just last week, which is two weeks ago actually, 65
new final regulations were published in the federal register, that's the equivalent of a new regulation every two hours and 35 minutes, isn't that too much? >> well, it probably s but i think when you're dealing with washington and you're dealing with donald in particular, it's like whac-a-mole here, he wants to maybe gut the epa and get rid of regulation there, but he wants to create a registry and track every muslim in the country. >> that's whole other argument. >> i understand you got to protect people's lives, i get that, but there are so many regulations that are just clogging up the works, it don't save anybody anything. >> that's true, that's right. by the way, trump is saying, he's talking about syrian refugees that aren't track it. he's not saying track every muslim, that's not fair. the problem right now is you're going to have new york state attorneys general saying we're
going to continue to sue no matter what trump does with regulations, they're going to sue the epa with more regulations, remember when howard baker with the riverboat gamble a gamble. >> steve forbes has deviced something that's really clever, really putting congress on the spot. >> if it's going to cost the economy more than $50 million, 1$100 million a year, it has to go before congress, not just veto it but pass it so they take responsibility for some of this nonsense instead of saying, oh, it's out of my hands. >> accountability that may slow down the regulatory process. >> i think we should go further, let's repeal free federal statutes for every new one. so some hate crime legislation
wants to be added to the books, you have to appeal that it's a felony to have dirt in your front yard. >> these regulations with respect just created to save people's lives by do gooders, they were created by people who had a vested interest in some of these regulations because they get either money or more power out of it. >> a lot of regulations particularly in the commercial area come from businesses who want to keep new entrants out. regulations don't make us safer, it's not as though regulators are always the first people on the scene of the crime. look back to 2008, it was market sleuths that figured out what was wrong with banks, regulators were oblivious. >> you live in chicago, you know how politics works, a lot of these regulations, they're not just to make people safer, a lot of them are to make some rich people richer and some powerful people more powerful.
>> well, that's right, but chicago deals with white envelopes and big green dollar bills, i don't think they deal with that. >> i will take a share of regulations in chicago as well. >> i would take steve's point a step further, i was in a conference recently when people were talking about regulations and laws, if they would change the bill numbers and put legislators names on them, that would definitely reduce some of the dumb issues we have. >> it shows that miracles never cease, especially in the christmas season. but the regulations, david, also are written in vague ways, so if they want to get you, they can. that's why it should be 20 to 1 instead of 2 to 1. if you buy a can of mixed nuts, the picture on the label has to be in descending order of weight. that's the kind of silliness you get from washington. >> the cash it in gang getting ready to roll at the bottom of the hour. eric what do you got.
>> donald trump posing an interesting question to the white house, if russia was indeed hacking us, why did you wait so long to act? and government employee programs for stressed out employees. new signs this week showing america's heroin epidemic is getting a lot worse. president trump says fixing it is a priority, our gang gives him the solution to do it in the first 100 days. that's coming up next.
new reports showing the nation's heroin epidemic has pushed overdose deaths to an all-time high. president-elect donald trump promising a fix one way is by building a wall to help keep the traffickers out. steve, a lot of mexican drug traffickers are switching from cocaine and marijuana directly to heroin because that's where the money is, so do we need the wall to keep them out? >> a wall would be a good start, that kind of enforcement is never a waste of money and having a better economy so you don't have much to spare. school reform is good too. 200 years ago we had massive liquor problems in this country, alcoholism, religious leaders cultural leaders got together and said a self-governing nation has to have self-governing
people. >> just look at the growth of heroin and the results of heroin addiction, we have a 286 rise in overdose deaths in 11 year year. >> that's a tragedy, but the height of the wall and the amount of barbed-wire you have on it, they're both difficult, they're both expensive. one of them is more infiltration of drug gangs and the other is more chem snifters, ion scanners that can pick that up along the borders. >> you're shaking your head no, why. >> i question the statistics on the big try us we have here, but my solution is that the white house should have no solution, the federal government can't be your everything and solve every problem, we have tried a war on drugs, it's been an utter failure. republicans needs to realize that big government fails when
they impose it on us just as much as when the democrats do. >> we have tried legalization, this is a crisis. tens of thousands of children that are now parentless because their parents are in drug rehab or worse, they're dead. but it does coincide with this legalization of marijuana and other drugs process, is there a lyn income. >> you make a great point, children pouring into foster homes in states across the country. this is a national tragedy. the issue too is look at what's happening in mexico, that is're decriminalizing heroin, ireland looking to decriminalize small amounts of heroin. as many people as i have talked to in the fbi say do not legalize drugs. i'm not talking about marijuana, i'm talking about the hard drugs, when you do that, it leads to addiction and they're doing that in irelaaiireland an countries. >> this stuff is justify pouring
across the border, it's now cheaper to buy heroin than it is to buy these pills that have opioids in them. >> but i will one up you that one of the biggest problems trump needs to get beyond mexico, we have a huge problem where chinese suppliers are shipping synthetic drugs and synthetic fentanyl which is a huge problem. when it comes to aquiddictionad have to treat mental health and addiction like you do regular medical treatment. >> the fact is that there's a lot of overprescription of pain medication that has opioids in it. people get prescribed it and their kids get a hold of it. >> but let's not put people in pain because of a fear of
we're back with the picks to help make your better off in the new year. >> t rowe price mid cap growth, i like it. especially if trump cuts corporate growth rates. >> mid size companies? >> this one cost s 11 times exactly at a corporate rate fund. >> real estate happens to be in new york and d.c. which are the
two cities of parasitizing the rest of the economy. >> it's a narrow focus on those two markets. >> have a great weekend, keep it right here, the number one business block continues with eric baldwin. donald trump firing back at his democrats who some say are using the allegationed russian hack to try and delegitimize his election win. the president-elect says if russia or some other entity was hacking, why did the white house wait so long to act? why did they only complain after hillary lost? and did president obama admit hillary was right by saying this? >> i think there is no doubt that when any foreign government tries to impact the integrity of our elections, that we need to make action, and we will. >> i'm eric