tv On the Money ABC January 22, 2017 7:30am-8:00am EST
hi, everyone. welcome to "on the money." i'm contessa brewer, in for becky quick. president trump and your money. if you're thinking of buying a car, a tv set, or a house, what could cost you more and what could cost you less? and why? the plan to repeal and replace the affordable care act. will it happen, and what should take its place? >> a weight on my shoulders worrying about my health care. the president's tax plan no matter what bracket you're in. it matters. and the first place donald trump calls home. the beginning of a real estate empire. no gold here. "on the money" starts right now. >> announcer: this is "on the money." your money. your life. your future. we begin with president trump and your money. america's new president wants to put policies in place that will have a major i
regulation, and trade for every american. now, some proposals may sound abstract but they could greatly affect what you buy, how much you pay, and your retirement. the trump economy is our cover story. >> under our plan the economy will average 3.5% growth. >> president trump's growth is to spur that growth with a new tax plan, reducing the current seven tax brackets to three. on the business side trump wants to cut the corporate tax rate from 35% to 15%. >> a trump administration will change our failed trade policies, and i mean quickly. >> trump also believes current trade deals are hurting american workers. he wants out of the transpacific partnership, or tpp, a planned trade deal with asia. and he wants to renegotiate the north american free trade agreement, or nafta. that's a trade agreement that was enacted 24 years ago with
trump has also proposed a moratorium on new regulations and plans to roll back existing rules on industries from banking to mining and manufacturing. >> i am going to cut regulations massively. >> joining us now is ben white, politico's senior economic reporter. and from washington, sarah fagen, a former bush-cheney aide and partner with ddc advocacy. thank you both for being here today. >> thank you. >> thank you. >> ben, let me begin with you. president trump is proposing some major changes here from trade cuts to rolling back some trade agreements and tax cuts. when we're looking at the overall plan, how much is he likely to be able to accomplish, especially considering the republicans control both the house and the senate? >> he's going to be able to accomplish a good deal of it. and he's going to start on the trade front, on the immigration front with some of these xek executive orders you that mentioned in your setup piece. he'll start the process of building a wal
agreement probably right away, renegotiate nafta, reopen nafta. the bigger ticket stuff that's really going to impact consumers, everyday americans, that's going to take a longer period of time. the tax reform package, particularly on corporate taxes, some disagreements between house republicans and trump on that. eventually, that could create faster economic growth. it could be more corporate profits if their taxes are lower. that probably means higher stock prices. it would be good for people's portfolios and retirement accounts. it could also mean inflation, though, and the trade stuff could mean in the short term higher prices for some consumer products. so i would look to that. >> and sarah, when we're talking about what he's able to accomplish given what he wants to accomplish, do you think that some of this is going to have to be done through executive action or is he going to have the full support from congress? >> a lot of what he wants to do early will have to be done through executive action and quite a bit of trade can be done through executive action. particularly nafta. so i would look for his administration to take action on nafta pretty quickly. as ben
process. there is a big disagreement between house republicans and the trump administration right now on the border adjustability tax, which is the republicans' plan to tax imports. and that would raise prices on consumers. >> just as president trump said hey, look, that's a little bit complicated, i just want something that's super simple when it comes to equalizing our trade wars with other nations, but is any cut in free trade likely to affect what consumers pay for? a tv. you go down to a big box store and you want to buy a tv. are you going to pay more for it? >> yes, we're going to pay more for it if we do get into a trade war with some of these countries president trump has talked about being unfair to the u.s. so if he is going to put tariffs on chinese imports, on mexican imports, that could lead in the short term certainly to higher prices for electronic goods, also for cars. there are a lot of u.s. manufacturers who make some of the
because the margins are so thin on them. if they are forced to pay tariffs to bring those cars into the u.s., that could make those cars much less competitive. they could stop making the cars entirely. but the trump plan is to incent companies. higher wages, more manufacturing jobs. they have to balance those things out, not start trade wars that could hurt consumers but also spur domestic mfg. >> when trump was on the campaign trail he went to coal country, was in steel country and he said he would reduce regulation. he said that kills jobs. how would that affect small businesses with regulations? ? i think it could have a huge impact on small businesses. right now you see small business hiring fewer people because the cost to maintain an employee is high. and if you roll those back, these small businesses will hire more people, it will be great for the economy. >> and of course if he's able to
15% that will make a huge difference to a lost companies. sarah, ben, thank you for being with me. i appreciate that. if the republicans repeal the affordable care act, what will they replace it with? the answer will affect millions of people whose coverage could change and who are worried about rising costs. bertha coombs has more on what could happen after obamacare. >> reporter: alex travison didn't have health insurance for years after getting laid off from gm. >> i didn't have any major health issues in that time. but i did have to go see my doctor every so many months. >> reporter: with obamacare subsidies he pays about $50 a month for an exchange plan. >> it's really worked for me very well, and i get very good care and i get to see my doctor regularly. >> reporter: he's worried he'll lose his coverage when the trump administration and republican congress repeal the affordable care act. >> to take away these benefits from us i think at this point borders on criminal.
congressional budget office estimated that the repeal of obamacare could leave more than 30 million americans without coverage within ten years. >> the democrats have traditionally focused on expanding coverage but not really paying attention to costs. the republicans are focusing on cost but not really focusing on coverage. >> reporter: the trump administration and republicans promise their obamacare replacement plan will provide access to coverage and be cheaper by offering more options. they liken obamacare to a fixed price buffet with required preventive health benefits for every plan, tax subsidies for low-income americans, which result in high deductibles and narrow networks and big premiums for those who aren't subsidized. republicans want to provide an a la carte menu with more cheaper skinnier plans for people who don't consume a lot of health services. a flat health tax credit for everyone. and bigger tax deductions and options for using health
accounts to pay for health expenses and even premiums. for people who require a lot of care and pripgsz health irnescr e consultant caroline mcclanahan says that kind of shift requires careful planning. >> it if they have a chronic illness and they need continuing care the ongoing expenses year to year are going pretty expensive so they need to have a lot of money set aside. >> reporter: alex travison worries for people like him with little cash to save the new plan may mean going without insurance again. >> it's in the declaration of independence, you know, life, liberty, and the pursuit of happiness. and if we don't have health care i don't have any of that. >> reporter: on average, premiums in the individual market on the exchanges rose about 22% nationally, even more in some rural areas where insurers pulled out because of big losses. that's something that the trump administration and the republicans in congress say they want to fix. >> all right, bertha, thank you. up
will small businesses boom or go bust? is the trump economy going to be a recipe for success? we'll head to detroit and get some answers. and later, president trump pledged on the campaign trail to lower taxes and simplify the tax code. will you keep more of your money under the new president's plan? first a look at how the stock market ended the week. the newly advanced gle can see in your blind spot. onboard cameras and radar detect danger all around you. driver assist systems pull you back into your lane if drifting. and will even help you brake, if necessary. it makes driving less of a production. lease the gle350 for $579 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing.
had expected. but the number is a volatile one. stocks were flat most of the holiday-shortened week. the dow trading in a fairly narrow range. the s&p 500 and nasdaq were choppy as well. though they closed higher on friday. and if you're looking to fly for less, add american airlines to your list. but you'll also get less. like delta and united, american will begin selling basic economy fares, and that means your carry-on luggage has to fit under the seat. no choosing your seats. and no flight changes. paul mccartney is asking for help. he's suing sony's music publishing division to try to get back the copyrights to 200 beatles songs. those rights were bought by michael jackson, then sold to sony after jackson's death. a u.s. law allows songwriters to sue to reclaim copyrights sold before 1978. small businesses are in many ways the big engine of the american economy. they're responsible
majority of the new jobs created every year and are a vibrant path of upward mobility. some small business owners are pinning their hopes on the new administration to help give their dreams a jump start. but others are worried. kate rogers has more from detroit. >> reporter: joe spencer has seen economic booms and busts in his home town of detroit, owning his restaurant louisiana creole gumbo since 1983. in the last year things have picked up in a big way. >> last year we had our best year for a single unit restaurant. we had $1.2 million sales. >> reporter: he's expanded to a second location and plans to open two food trucks. but one thing is on his mind these days. how donald trump stands to impact the economy. >> he is supposed to be business-friendly and his policies should be business-friendly. so we've just got to wait and see what that is. >> reporter: business owners have varying opinions across motor city, which has seen a resurgence
in recent years $3 billion has been invested in detroit's downtown where more than 100 small businesses have since launched. tom agosta opened his restaurant in 2008 as the recession took hold. while trump's talk of deregulation has some on main street feeling optimistic, agosta is concerned. >> small businesses are the ones that bear the brunt of things that happen in washington. when people talk deregulation i n person.ed beca >> reporter: but detroit native naila brown is staying optimistic. the college dropout started ellis island tea in 2008 after perfecting her family's recipe. today she she retails in some 300 stores across the midwest including whole foods. >> there's a spirit that the city here carries and that is a spirit of resilience. and all entrepreneurs know that it is an extremely tough journey and there are times when we want to give up. and so we need a motivation to keep
times. i'm not in business just for myself. it's to biff back to the community as well. and the way i give back is by providing jobs. and the more my company grows the more jobs i can provide. >> reporter: as trump packs his cabinet with billionaires she has just one ask. >> if i had one wish over the next four years for the trump administration, it would be to strengthen the economy. >> reporter: detroit has certainly been through its ups and downs over the years but its people, as naila said, are resilient and i would say on the whole keeping a pretty positive attitude about the new administration. >> that's a pretty broad ask, strengthen the economy. when you were talking to these small business owners was there a running theme on specific steps they would like to see awfrom a trump presidency? >> the economy actually if you were pro trump or anti-trump, the takeaway is everybody's very concerned about consumer confidence and how that might impact their specific businesses. when you talk about big ask, joe spencer, the first person you heard from, he was very impressed about trump's
because he's concerned about detroit and that thrives if the auto industry thrives. naila was looking for more infrastructure investment. she said if he did anything to even fix the roads in inner cities that goat more people out and about and that would help consumers buy more products and -- they're thinking big picture economy but definitely had specific asks and on the whole are optimistic and trying to keep an open mind. >> kate, thank you. >> thank you. >> up next, we're "on the money." if some tax deductions disapp r disappear, will you lose money? what stays and what goes in president trump's tax plan. and you won't find any gold or marble in this suburban tudor home, which may i enlisted in the army in 2005. i went to iraq three times and afghanistan once. she's the culprit that ripped our door off. 2,000-pound animal bumping into a steel door creates quite a bit of damage. actually used
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tax season unofficially begins next week. tax reform was one of candidate trump's biggest campaign promises. now that the trump presidency is under way, will those tax cuts happen and when? ken spieth is chairman of personal wealth advisers at accounting firm eisner amper. tim, it's great to see you. >> thank you. >> first of all, he says he wants fueler tax brackets. he wants to reduce them to three. currently they're at seven. when might we see that happen and how would families in each of those tax brackets feel the impact? >> it's interesting. we did some
households that would have income say, $50,000 to $100,000 in the proposed plan end up in just about the same place as the tax law present today in 2016. as far as your point as far as when it would be effective, it could be signed october, november, which means 2018. >> would deductions disappear here? i know president trump wants to cap the amount of deductions you can take. >> yes. there would be a basket of what everyone has now as itemized deduction. many of your viewers are deducting home mortgage, real estate taxes, state income taxes they pay, charitable and others. that would be capped in a basket at $200,000. >> especially the biggest deduction most people probably take is what they pay on interest on their mortgages. >> correct. >> would that remain unchanged? >> it would remain unchanged except subject to in all the itemized deduction
$1200,000 limit $1201 $200,000 limit. >> a lot of concern from charities about including those charitable deductions in the overall limit on deductions. >> that's right. >> how would that come into play? >> well, presently it is. and that's a big public policy issue. think about it. you're a charity, you're trying to support children, education, health care. hypothetically you could see contributions decreased. >> also something that doesn't affect a vast majority of americans but it's the estate tax and president trump wants to repeal it. >> yes, he does. he wants to basically have no estate tax. right now a married couple can shelter up to $11 million jointly. however, should that go through, if the heirs, the people receiving the property, the estate tax, go to sell in the future, they have whatever the cost basis was. so it's a switch.
capital gain tax revenue. they just won't get the estate tax revenue at the front end. >> thank you so much for coming in and breaking some of this down for us. >> thank you. >> up next, "on the money." a look at the news for the week ahead. and donald trump's humble beginnings. we take a look at the first piece of real estate he ever ♪ whether you're after supreme performance... advanced intelligence... or breathtaking style... there's a c-class just for you. decisions, decisions, decisions. lease the c300 sedan for $389 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing. the possibility of a flare was almost always on my mind. thinking about what to avoid, where to go...
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up that may affect your money this week. on tuesday existing home sales numbers are released for december. and cheers. here's a brewer. i can get behind this one. canned beer officially went on sale on this day back in 1935. another occasion for celebration. in 1905 the world's largest diamond was discovered in south africa. it was 3,106 carats and weighed 1.33 pounds. on thursday we'll get the newest home sales numbers. and on friday we'll get a read on the economy with durable goods. as well as a first look at fourth quarter gdp. president trump didn't always live in luxury. our reporter robert frank toured president trump's childhood home in queens, new york, and its history may now put a premium on its price. >> reporter: this is the first place that donald trump ever called home. >> donald trump was born in 1946 on june 14th at jamaica hospital, and
listed on the birth certificate as his home address. >> reporter: the modest home was recently sold at auction. the winning bid is still undisclosed but the fact the donald lived here was expected to add a significant premium to the price. >> the home originally went on the market for 1.65 million back in july. some have speculated that the louse is worth anywhere from three to ten times the original price now that he's president-elect. >> reporter: even the real estate mogul himself expressed interest in buying it. >> any fond memories from this house? >> well, i had great parents and i had great brothers and sisters. i had a really good childhood. oh, that's sad to look at that. i want to buy it. >> reporter: the 2,500-square-foot home was built by trump's father in 1940. >> we're on the second floor of the home now. and this could have been the room that the president-elect slept in when he was a child. >> reporter: there are five bedrooms and 4 1/2 bathrooms. >> everybody associates the trump name with gold, glitzy, large penthouse-style
and this is much more humble. >> and contessa, that house did sell on tuesday at auction. we're told that the seller is still sort of ironing out some details with the buyer. we don't have the new owner's name. we don't have the exact price. but that sale likely will happen. it was a big bet by the sellers. 1.65. people are saying this could fetch 5 to 10 million once he was elected. so that bet seems to have paid off, at least for this house. >> that is quite a premium. and robert, of course trump tower behind you has served as the residence for the trumps in new york. is he still planning to spend a lot of time in the city? >> reporter: yeah, quite a journey from that loft house in queens to the tower of power behind me, 33,000 square feet compared to that 5,000-square-foot house we just showed you. and trump loves new york. it's part of his dna. it's part of his routine. of course his wife melania and son barron will continue to stay here until barron finishes the
trump i'm told will come back here on weekends perhaps, a couple times a month. but new york is in his blood. it's part of his soul. i expect ebel the first sort of dual resident president who will share time both here and d.c. >> robert, thank you. >> absolutely. thank you, contessa. >> that's the show for today. i'm contessa brewer in for becky. thank you so much for joining us. next week, one state is proposing free college tuition. hey, that sounds great. but who really is that helping? each week keep it right here. we are "on the money." have a great one. we'll see you next weekend.
good morning, america. new overnight. pink power. the women's marches on president trump's doorstep. [ crowd chanting ] >> welcome to your first day, we will not go away. >> across the country. and around the world. ♪ this girl is on fire >> mothers, daughters, and grandmothers, marching to be heard. coming together to send one massive message. blasting the media. president trump's new fight with the press. >> they are among the most dishonest human beings on earth. >> taking issue with reports on attendance numbers at his inauguration. the president's press secretary then giving reporters a tongue lashing as trump heads to the cia. his new attempt to mend fences with the intelligence