tv The Intelligence Report With Trish Regan FOX Business December 18, 2017 2:00pm-3:00pm EST
him and again, with vice president pence doing the honors to introduce the bows. now the dow up 132 points, nasdac is up and s & p is up and here is trish regan. trish: thank you so much we've got markets higher around 25,000 watch and breaking the president is about to speak any minute from now, and reveal his administration's first national security strategy. he's going to be making the case that economic security is critical to national security. all of this as the house gets ready to vote on the tax plan tomorrow. i am trish regan welcome everyone to a very special edition of the intelligence report. trump is going to be making the case that the u.s. cannot be a beacon of strength and a beacon of stability in the world unless we put america first and we hit the ground running in terms of economic security and we re negotiate our trade deals, you know as neil just told you, china does not like the sound of that. here to discuss former sun ambassador and tax news
contributor john bolton again as we wait on the president of the united states and ambassador bolton, america first. what does that mean to you? >> well, i think it's critical that the president has made the point that you cannot have a strong american position in the world without a strong domestic economy and i think the reverse is true too without a strong domestic economy you can't project american power, so it's no surprise given the priorities this president has had and i think from what we've been told in advance what the speech and the broader national security strategy will lay out will be essentially what he said beginning on the campaign trail and continuing through his statements. it's a policy that looks very much in the mainstream of republican foreign policy thinking. it's certainly not isolationist, and it recognizes the principal threats that we face on the strategic level from russia and china, and on the more immediate level from nuclear proliferation
from the likes of iran and north korea and the continuing threat of international terrorism, so i think it looks so far like a very responsible statement of the president's position and i think it will be an important thing for him and in his first year in office which is pretty rare for recent presidents actually to get this statement written and out. trish: seems kind of basic right you need economic security in order to have military security, the two absolutely do go hand in hand but have you seen examples of administrations that didn't properly recognize that? >> sure, i think the obama administration is a case in point. you know, there's been a lot of criticism of trump that he's an isolationist. i just think the record doesn't bear that out nor does the statement and the realizes o haitianist was barack obama who consistently withdrew american power from key regions of the world, from east asia facing an expansion on china in places like the south china sea, allowing chaos to spread
throughout the critical middle east and generally looking at america being as much apart of the problem on the world stage as apart of the solution. i think this national security statement reverses that. i think that's been evident in the president's conduct to date and just lays it out in black and white. trish: well the president is coming up there greeting the vice president let's listen in now to hear this america first strategy from the president of the united states, donald j. trump. >> [applause] president trump: thank you. >> [applause] president trump: thank you very much. i want to thank vice president pence, along with the many members of my cabinet here with us today, i also want to thank all of the dedicated professionals, military, civilian and law enforcement who
devote their lives to serving our nation. in particular, i want to recognize general dunfort and the members of the joint chiefs of staff, thank you. thank you. thank you. >> [applause] president trump: in addition, we are honored to be joined by house majority leader kevin mccarthy, homeland security chairman mike mccaul, and senate majority whip john ko rnan, thank you very much thank you for being here. thank you. let me begin by expressing our deepest sympathies and most heartfelt prayers for the victims of the train derailment in washington state. we are closely monitoring the situation and coordinating with local authorities. it is all the more reason why we must start immediately fixing
the infrastructure of the united states. we're here today to discuss matters of vital importance to us all, america's security, prosperity, and standing in the world. i want to talk about where we've been, where we are now, and finally, our strategy for where we are going in the years ahead. over the past 11 months, i have traveled tens of thousands of miles to visit 13 countries. i have met with more than 100 world leaders. i have carried mesh's message to a grand haul in saudi arabia, a great square in warsaw, to the general assembly of the united nations, and to the seat of democracy on the korean peninsula. everywhere i traveled, it was my highest privilege and greatest honor to represent the american people. throughout our history the american people have always been
the true source of american greatness. our people have promoted our culture and promoted our values. americans have fought and sacrificed on the battlefields all over the world. we have liberated captive nations, transformed former enemies into the best of friends , and lifted entire regions of the planet from poverty to prosperity. because of our people, america has been among the greatest forces for peace and justice and the history of the world. the american people are generous you are determined, you are brave, you are strong, and you are wise. when the american people speak, all of us should listen and just over one year ago, you spoke loud and you spoke clear. on november 8, 2016, you voted
to make america great again. >> [applause] president trump: you embraced new leadership, and very new strategies and also a glorious new hope. that is why we're here today, but to seize the opportunities of the future, we must first understand the failures of the past. for many years our citizens watched as washington politicians presided over one disappointment after another. to many of our leaders, so many, who forgot whose voices they were to respect and whose interests they were supposed to defend. our leaders in washington negotiated disasters trade deals
that brought massive profits to many foreign nations but sent thousands of american factories and millions of american jobs to those other countries. our leaders engaged in nation- building abroad while they failed to build up and replenish our nation at home. they undercut and short changed our men and women in uniform with inadequate resources, unstable funding, and unclear missions. they failed to insist that our very wealthy allies pay their fair share for defense, putting a massive and unfair burden on the u.s. taxpayer and our great u.s. military. they neglected a nuclear menace in north korea, made a
disastrous week and an in comprehensible bad deal with iran and allowed terrorists such as isis to gain control of vast parts of territory, all across the middle east. they put american energy under lock and key. they imposed punishing regulations and crippling taxes. they surrendered our sovereignty to foreign bureaucrats in far away and distant capitols, and over the profound objections of the american people, our politicians left our borders wide open. millions of immigrants entered illegally. millions more were admitted into our country without the proper vetting needed to protect our security and our economy. leaders in washington imposed on
the country an immigration policy that americans never voted for, never asked for, and never approved. a policies where the wrong people are allowed into our country and the right people are rejected. american citizens, as usual, have been left to bear the cost and to pick up the tab. on top of everything else, our leaders drifted from american principles. they lost sight of america's destiny and they lost their belief in american greatness. as a result, our citizens lost something as well. the people lost confidence in their government and eventually even lost confidence in their future. but last year all of that began to change. the american people rejected the failures of the past.
you rediscovered your voice and reclaimed ownership of this nation and its destiny. on january 20, 2017, i stood on the steps of the capitol to harold the day that people became the rulers of their nation again. >> [applause] president trump: thank you. thank you. now, less than one year later, i am proud to report that the entire world has heard the news and has already seen the signs. america's coming back and america is coming back strong. upon my inauguration i announced that the united states would return to a simple principle, the first duty of our government
is to serve its citizens many of whom have been forgotten, but they are not forgotten any more. with every decision and every action we are now putting america first. we are rebuilding our nation, our confidence, and our standing in the world. we have moved swiftly to confront our challenges and we have confronted them head on. we are once again investing in our defense almost $700 billion, a record this coming year. we are demanding extraordinary strength which will hopefully lead to long and extraordinary peace. we are giving our courageous military men and women the support they need and so dearly deserve. we have withdrawn the united states from job killing deals such as the trans pacific partnership and the very
expensive and unfair paris climate accord, and on our trip to asia last month, i announced that we will no longer tolerate trading abuse. we have established strict new vetting procedures to keep terrorists out of the united states and our vetting is getting tougher each month. to counter iran and block its path to a nuclear weapon, i sanctioned the islamic revolutionary guard corps for its support of terrorism and i declined to certified the iran deal to congress. following my trip to the middle east, the gulf states, and other muslim majority nations joined together to fight radical islami st ideology and terrorists financing, we have dealt isis one devastating defeat after another. the coalition to defeat isis has now recaptured almost 100% of
the land once held by these terrorists in iraq and in syria. great job. >> [applause] president trump: great job. really good. really good. thank you. thank you. we have a great military. we're now chasing them wherever they flee and we will not let them into the united states. in afghanistan our troops are no longer under mined by artificial timelines and we no longer tell our enemies of our plans. we are beginning to see results on the battlefield, and we have made clear to pakistan that while we desire continued partnership, we must see decisive action against terrorists groups operating on their territory, and we make massive payments every year to
pakistan. they have to help. our efforts to strengthen the nato alliance set the stage for significant increases in member contributions with tens of billions of dollars more pouring in because i would not allow member states to be delinquent in the payment while we guarantee their safety and our willing to fight wars for them. we have made clear that countries that are immensely wealthy should reimburse the united states for the cost of defending them. this is a major departure from the past but a fair and necessary one. necessary for our country, necessary for our taxpayer, necessary for our own thought process. our campaign of maximum pressure
on the north korean regime has resulted in the toughest ever sanctions. we have united our allies in an unprecedented effort to isolate north korea; however, there is much more work to do. america and its allies will take all necessary steps to achieve a denuclearization and ensure this regime cannot threaten the world . >> [applause] president trump: this situation should have been taken care of long before i got into office, when it was much easier to handle but it will be taken care of. we have no choice. at home, we're keeping our promises and liberating the american economy. we have created more than 2 million jobs since the election, unemployment is at a
17 year low. the stock market is at an all-time high and just a little while ago, hit yet another all-time high. the 85th time since my election. >> [applause] president trump: we have cut 22 regulations for every one new regulation, the most in the history of our country. we have unlocked america's vast energy resources as the world watches and the world is indeed watching, we are days away from passing historic tax cuts for american families and businesses it will be the biggest tax cut and tax reform in the history of our country. >> [applause] president trump: thank you. thank you. thank you.
and we are seeing response we fully expected. economic growth has topped 3% for two quarters in a row. gdp growth which is way ahead of schedule under my administration will be one of america's truly greatest weapons. optimism has surged, confidence has returned. with this new confidence we're also bringing back clarity to our thinking. we were reassure setting these fundamental truths, a nation without borders is not a nation. [applause] president trump: a nation that does not protect prosperity at home cannot protect its interests abroad. a nation that is not prepared to
win a war is a nation not capable of preventing a war. a nation that is not proud of its history cannot be confident in its future and a nation that is not certain of its values cannot bring the will to defend them. today grounded in these truths, we are presenting to the world our new national security strategy. based on my direction this document has been in development for over a year. it has the endorsement of my entire cabinet, our new strategy is based on a principle realism guided by our vital national interest and rooted in our time less values. this strategy recognizes that whether we like it or not, we are engaged in a new era of
competition. we accept that vigorous military economic and political contests are now playing out all around the world. we face rogue regimes that threaten the united states and our allies. we face terrorists organizations , transnational criminal networks, and others who spread violence and evil around the globe. we also face rival powers, russia and china, that seek to challenge american influence values and wealth. we will attempt to build a great partnership with those and other countries but in a manner that always protects our national interest. as an example yesterday i received a call from president putin of russia thanking our country for the intelligence that our caa was able to provide them concerning a major terrorists attack planned in st.
petersburg where many people perhaps in the thousands could have been killed. they were able to apprehend these terrorists before the event with no loss of life and that's a great thing and the way it's supposed to work. that is the way it's supposed to work, but while we seek such opportunities of cooperation, we will stand up for ourselves and we will stand up for our country like we have never stood up before. >> [applause] president trump: thank you. thank you. we know that american success is not a foregone conclusion. it must be earned and it must be won, our rivals are tough. they're tenancies and committed to the long term but so are we,
to succeed we must integrate every dimension of our national strength and we must compete with every instrument of our national power. under the trump administration america is gaining wealth, leading to enhanced power faster than anyone thought with $6 trillion more in the stock market alone since the election. $6 trillion. with the strategy i'm announcing today we are declaring america is in the game and america is going to win. our strategy, thank you. >> [applause] president trump: our strategy advances four vital national interests. first, we must protect the american people. the homeland, and our great american way of life.
this strategy recognizes that we cannot secure a nation if we do not secure our borders, so for the first time ever, american strategy now includes a serious plan to defend our homeland. it calls for the construction of a wall on our southern border, ending chain migration and the horrible visa and lottery programs, closing loopholes that under mine enforcement, and strongly supporting our border patrol agents, ice officers, and homeland security personnel. >> [applause] president trump: in addition, our strategy calls for us to confront, discredit and defeat radical islamic terrorism and ideology and to
prevent it from spreading into the united states, and we will develop new ways to counter those who use new domains such as cyber and social media to attack our nation or threaten our society. the second pillar of our strategy is to promote american prosperity. for the first time, american strategy recognizes that economic security is national security. economic vitality growth and prosperity at home is absolutely necessary for american power and influence abroad. any nation that trades the way its prosperity for security will end up losing both. that is why this national security strategy emphasizes more than ever before the critical steps we must take to ensure the prosperity of our nation for a long long time to
come. it calls for cutting taxes and rolling back unnecessary regulations. it calls for trade based on the principles of fairness and reciprocity. it calls for firm action against unfair trade practices and intellectual property theft and it calls for new steps to protect our national security industrial and innovation base. the strategy proposes a complete rebuilding of american infrastructure, our roads, bridges, airports, waterways, and communications infrastructure and it embraces a future of american energy dominance and self-sufficiency. the third pillar of our strategy is to reserve peace through strength. >> [applause] president trump:
we recognize that weakness is the path to conflict and unrivalled power is the most certain means of defense. for this reason, our strategy breaks from the damaging defense sequester. we're going to get rid of that. >> [applause] president trump: it calls for a total modernization of our military and reversing previous decisions to shrink our armed forces even as threats to national security grew. it calls for streamlining acquisition, eliminating bloated bureaucracy and massively building up our military which has the fundamental side benefit of creating millions and million s of jobs. this strategy includes plans to
counter modern threats, cyber and electromagnetic attacks. it recognizes space as a competitive domain and calls for multi-layered missile defense. >> [applause] president trump: this strategy outlines important steps to address new forms of conflict, such as economic and political aggression, and our strategy emphasizes strengthening alliances to cope with these threats. it recognizes that our strength is magnified by allies who share
principles and our principles and shoulder their fair share of responsibility for our common security. fourth and finally our strategy is to advance american influence in the world, but this begins with building up our wealth and power at home. america will lead again. we do not seek to impose our way of life on anyone but we will champion the values without apology. we want strong alliances and partnerships based on cooperation and to become an obsolete, an obstacle to peace. we will pursue the vision we have carried around the world over this past year, a vision of strong, sovereign and independent nations that respect their citizens and respect their
neighbors. nations that thrive in commerce and cooperation, rooted in their histories and p branching out toward their destinies. that is the future we wish for this world, and that is the future we seek in america. [applause] thank you. with this strategy we are calling for a great reawakening of america, a resurgence of confidence and a rebirth of patriotism, prosperity and pride. and we are returning to the wisdom of our founders, that people govern, the people rule and the people are sovereign. what we have built here in america is precious and unique. in all of history, never before has freedom reigned, the rule of
law prevailed and the people thrived as we have here for nearly 250 years. we must love and defend it. we must guard it with vigilance and spirit. and, if necessary -- like so many before us -- with our very lives. and we declare that our will is renewed, our future is regained and our dreams are restored. every american has a role the -- a role to play in this grand national effort. and today i invite every citizen to take their part in our vital mission. together our task is to strengthen our families, to build up our communities, to serve our citizens and to celebrate american greatness as a shining example to the world.
as long as we are proud and very proud of who we are, how we got here and what we are fighting for to preserve, we will not fail. if we do all of this, if we rediscover our resolve and commit ourselves to compete and win again, then together we will leave our children and our grandchildren a nation that is stronger, better, freer, prouder and, yes, an america that is greater than ever before. god bless you. thank you very much. thank you. [applause] ♪ ♪ trish: a pretty substantive, somber and presidential speech there from president trump as he addresses our national strategy, putting america first. you heard a lot of things that
you've probably herald throughout the campaign, but it was synthesized and put forward as what he wants to accomplish in his four years in office. a lot of it, frankly, common sense, right? things that we should be working on. of course we want economic prosperity. you can't have it without also have a strong military. you can't have a strong military without having a strong economy. here with me to discuss, lieutenant colonel ralph peters. colonel, i've got to imagine you liked a lot of what you heard there. i mean, that was hard to disagree with, any of it. >> i'd say you took the words out of my mouth. we heard largely common sense which is ever in short supply in washington. so if you look at his four points, the four overarching points, secure the homeland. no-brainer. strengthen the american economy. of course a strong economy is the foundation of a strong military. three, rejuvenate that military,
invigorate it and, fourth, and this is the interesting one, expand america's influence abroad. now, that's the one that he's had trouble with because in order -- we've actually lost ground on that one point this year with his criticism of our allies, unnecessary spats. but if we are now going to move ahead and try to get back on track, then there's really nothing in those four bullet points you'd want to quibble with. it's a sensible program. my one problem, and i've got to say this, trish, i can't avoid it -- trish: i want you. full disclosure here, what is your one problem with what you heard? >> the one problem is this unicorn he's chasing of a strategic partnership with vladimir putin. it's not going to happen. vladimir putin is our enemy. and also -- trish: he was making the point, just so the viewers are aware, that we were very helpful to the russians recently because there was a terror threat in st. petersburg, and we helped save thousands of lives as a result of our intelligence, and he wants more cooperation on the
intelligence front. >> well, i would bewarely of that. certainly, we're civilized people. we will help anybody, russian ares, chinese, anybody prevent a terrorist attack. but at any rate -- trish: you know, at any rate, i imagined you liked most of it. patriotism, prosperity, pride, there are a lot of people that this stuff makes them nervous because over the last eight years it wasn't hip, it wasn't cool to be rah, rah, america. and now he's bringing that sense of pride back to the country in a meaningful way, colonel. >> i've always been proud of being american. i never stopped being proud. but look, again, this was a common sense speech. let's stick to that term because it really does apply. now, the devil is, of course, is both in the details and the implementation. what we have to see is how he does that. trish: he's laying it out. >> yeah. he is, indeed. trish: i've got a quick commercial, but he is laying it out, and it's important that these things be said. >> yeah. trish: we're going to move to a
prosperous future. thank you so much, colonel. good speech, there you go. a really traumatic injury, we have a short amount of time to get our patient to the hospital with good results. we call that, the golden hour. evaluating patients remotely, is where i think we have a potential to make a difference. we would save a lot of lives if we could bring the doctor to the patient. verizon is racing to build the first and most powerful 5g network, with ultra low-latency that will enable things like precision robotic surgery from thousands of miles away. as we get faster wireless connections, it'll be possible to be able to operate on a patient in a way that was just not possible before. when i move my hand, the robot on the other side will mimic the movement, with almost no delay. who knew a scalpel could work thousands of miles away? ♪
trish: press conference happening right now from the ntsb about that amtrak train derailment earlier today. >> staff with expertise in the following areas: operations, mechanical, track, signals, human performance and survival factors. also accompanying the team are members of the ntsb's office of transportation disaster assistance or tda and the office of media relations. this accident meets the criteria of the rail passenger disaster
family assistance act. our tda specialists are already working closely with officials at the scene locally as well as with amtrak to assist them in their efforts to support all of those who have been affected by this accident. several of our investigators on the west coast will be arriving on scene this afternoon. the rest of our go team expect to arrive at the scene late tonight. for the latest information on media briefings, i encourage you to follow us on twitter at ntsb underscore newsroom and our web site is ntsb.gov. again, we are just launching our go team, and we will have more information after we arrive on scene and start the investigation. we'll be holding a number of media briefings at the scene over the next few days in washington state. now, i'd be happy to take a few questions, and if you'd like to ask a question, please raise your hand, and i will recognize you.
and then please identify yourself and your media outlet. thank you. yes. >> [inaudible] from abc news. do we think this accident could be speed-related? do we know what speed the train was traveling at -- [inaudible] >> it's a little bit too early to know. right now we're sending investigators on to the scene, so we'll find all of that. we want to give you as accurate information as possible. yes. >> [inaudible] do you have an updated number on the number of fatalities -- [inaudible] >> so you've probably heard a lot of different numbers reported by different news outlets, and we leave that to the local authorities to report, and that varies according to the jurisdiction. yes, in the back. >> [inaudible] cbs. i want you to talk about the train itself. it was a newer train. was there any crash avoidance technology on this train? >> it -- we actually at this moment we don't know because we don't have an investigator on scene, but they're headed there as we speak -- >> [inaudible] no information have been given
to you guys -- [inaudible] >> we are looking at that because we want to make sure we get the right information. there's a lot of different information, we don't want to speculate on that. yes. >> [inaudible] with the ap. aye seen conflicting reports that this was, like, a brand new track or a new route that was being run? can you clarify the nature of the track and the train? was this a new route or a newly refurbished route? there were some aspects i just wanted to clear up. >> the question is, was this a new route, has there been any information about whether the track was new, and so we are aware of the fact that this was called an inaugural run of this, this service, but we want to check and make sure what that exactly means and find out more information about that specifically. and, yes. >> [inaudible] reuters. do you know if the conductor or any of the other train personnel have been interviewed or what the status of them are? >> the question is have any of
the train personnel been interviewed, and that is what we'll be doing as soon as our investigator gets on scene. and our investigator in charge is actually enroute right now as we speak. last question. in the back. >> [inaudible] amtrak's web site says this train -- [inaudible] technology that allow the trains not to have to speed down -- [inaudible] instead to -- [inaudible] is that new or different technology that isn't already in place or in use in other amtrak routes? >> the question is what kind of technology, is there any kind of new technology that is being used on this track, and that's why we've launched a full go team with all the different types of experts. we're gathering -- trish: all right, everyone, you've been listening to the ntsb, they are giving -- [audio difficulty]
an update on the train derailment. they mentioned that they sent their go team to the scene, so roughly 20 investigators are going to be looking into just why that happened, and they will be updating us throughout the afternoon with any information they get there live from the scene. meanwhile, back to tax reform because we're up 142 right now. we're getting awfully close to that 25k level. the house is going to be voting on the final tax bill tomorrow afternoon, and the president keeps touting this as the biggest tax cut ever. and while it's great for corporations and there's nothing wrong with that -- and it's also great for a lot of fat accurate private equity investors and there's something wrong with that -- steve schwartzman who's made over $400 billion in years, and his tax bracket's lower than a new york city cop. and that's because he calls his income investment. the president promised to fix
this, remember? >> there are reasons the hedge fund managers are all donating the hawaiian's campaign and not to mine -- to hillary clinton's campaign and not to mine. everybody getting rich off the rich system and who wants nothing to change and nothing -- they don't want anything to change. they want to keep it the way it is. they're throwing their money at hillary clinton. we will eliminate the carried interest deduction, well known deduction, ask other special interest -- and other special interest loopholes that have been so good for wall street investors and for people like me. trish: but neither the house nor the senate ever bothered to address it. so those private equity fat cats get away with paying investment taxes instead of income taxes. and that is just wrong. so why doesn't anyone care? do you consider that carried interest income or investment?
>> well, again, it's technically, it's carried interest in the way that it's allocated in the tax system. also known as profits interest. trish: so then you believe it should get a lower tax rate. >> again, it's a complicated issue. it's not that much money. it's not that much money. it's not that much. trish: no, it's not that much money. i mean, who cares about $100 billion? maybe steven mnuchin doesn't care about $100 billion or his billionaire friends, but come on. you mean to tell me that special interest lobbyists are so alive and well in washington that they convinced the entire house and senate to ignore this inequity? i'm beginning to wonder if our country is becoming ungovernable, because i'll tell you one thing, our founding fathers never, ever anticipated a swamp like the one we have today. joining me right now is a man who i know is equally concerned,
founder of global strategies jay place sky, also fox news contributor steve cortes. and, jay, we just saw the president talk about what we need to accomplish as a nation, and he said a lot of things that's, frankly, common sense. but i would tell you it's common sense to fix some of the inequities in the tax code, and nobody's bothering to do it. is that because special interests are that alive and well? >> well, i think it might be a combination of a lot of things, trish. part of it is, of course, the process itself was very rushed, the delivery of the bill on a friday night when they think no one's going to pay attention, the one-pager for the treasury, you saw the -- you interviewed the treasury secretary there, right? instead of a scoring system like we normally get with something this size, we got a one-pager with a whole host of -- trish: so i'll deyou, you know what, steve? they can't, and i every day on this show have sat here and said this is wrong, i don't understand -- >> right. trish: when the president
promised to fix it, why no one bothered, no one cared. apparently it's just not that much money, $100 billion, steve. >> well, no, trish, it is a lot of money. i totally agree with you. you have every reason to be angry about this, but a couple points that might talk you back from the lemming. one is the white house tried very hard, and the head of legislative affairs, mark short, in an interview yesterday said we will come back -- we, meaning the white house -- will come back to this issue next year. so they haven't given -- trish: first of all, i'm not on the ledge, i'm just disgusted with our government right now. >> understood. [laughter] trish: disgusted they had an opportunity to fix something that, frankly, is easy to fix. but we're being told that because of a few lobbyists in washington, they didn't even bother to touch it. they didn't even address it. >> right, no -- trish: and they think somehow they can pass this over on us because it's too complicated, and the minute you say private equity and carried interest, everybody gets bored and they don't want to hear it.
no, this is real money, and it could have gone towards fixing this inequity in our tax code, and they just didn't bother, steve. >> no, listen, trish, i agree with you. believe me, i'm not arguing that point at all. i concur. this is the swamp at its very worst. i think one thing we're finding though is donald trump -- he's finding that the swamp is harder to drain and more entrenched than any of us knew. but let's also keep it in context, though i don't like this aspect of tax reform or the lack of reform here, let's look at the totality of the reform which i think is going to be magnificent for main street america. i hope we can fix it later -- trish: symptomatic of everything. all right. i'm happy about lower corporate taxes. i think that, you know, there's many that can be done and as far as some of these state and local tax deductions, yes, these states need to get their act together. but when you tell me that steve schwartzman who's making $400 plus million a year can play a
lower tax rate than a new york city cop, something is fundamentally wrong with our system, jay, and i don't know how we continue on this path. >> i think it is episodic of what the u.s. faces in general, right? i think we have a system, and this is what we've been talking about, trish, you and i for some time, where we are falling behind the rest of the world, right? we have a very proactive asia that china and japan are both moving ahead aggressively. we have a resurgent europe where macron and merkle are coming together. and here in americas we've really been inactive. we have one administration come in, it undoes what the prior administration does. then the next administration comes in and does the same, and the result is no real forward movement. i'll take even the other side of steve's comments about how great this tax cut is going to be. i don't think it's going to be great at all. in fact, i think there's a reasonable chance that a year from now we're going to look
back and what has been pitched as a pro-growth tax cut is actually going to be anti-growth because it's going to lead to a fed policy mistake. we're going to have of a new fed effectively in the next -- in 2018. a policy mistake, an inverted yield curve, a stock market selloff and potentially a recession. this is a wait cycle, full economy -- full-employment economy, and one of the last things we need is a massive fiscal stimulus. >> jay, here's -- trish: i've got to leave it there, i'm out of time. my only complaint is just, please, please, washington, try and be fair. get all those special interests and lobbyists out of the equation becausewh the american people don't deserve that. jay, steve, thank you so much. we're going to be right back. is this a phone?
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>> in america the people govern, the people rule, and the people are sovereign. what we have built here in america is precious and unique. in all of history, never before has freedom reigned, the rule of law prevailed and the people thrived as we have here for nearly 250 years. we must love and defend it. trish: i'll tell you, that was a great speech. and it seemed to me that in some ways he was channeling ronald reagan. here's a guy who knew ronald reagan very well. he was his former economic adviser, art laffer. art, what did you think of his speech? >> i loved it, i did. i really did love it. it was channeling reagan.
and when you look at what's going on, all the naysayers around, and i know you get into arguments -- by the way, the last segment you were spectacular. [laughter] trish: thank you. >> when you look at this, it's just wonderful. this bill's better than the 1981 bill. yeah, there are lots of problems, and it's just what reagan did, and then we're going to have another round. when you were out at the reagan library there and we talked about defense, you know, this is the best defense policy i've ever seen. economic growth is the answer. look at what's happening. this guy is becoming a real success. i mean, shock oh, shock, look at the wonderful things that that e happening; market up, tax bill gonna pass, we got isis -- what do you want, chocolate ice cream with it or what? trish: well, i thought the speech was truly tremendous. >> it was wonderful. trish: i thought he really laid out an agenda that needed to be said. >> yes. trish: so much of it is common
sense, but for whatever reason, art, no one seems to have any common sense be anymore, and it's refreshing to hear, and i think this is exactly why he won. >> i don't know if it's why he won with or not, but whatever it is, he did a great job on this. he's done better than any president in recent history, not including reagan, of course, but he has just done a great job doing this. and from what i look at, i can see nothing but good things happening in the future as well. trish: so, you know, i strive for perfection, and i wanted this tax bill to be perfect, and i think there's a lot of good stuff in there. i do think it'll help the economy overall, we've got the markets looking at close to 25,000. but there were some what i call low-hanging fruit and this private equity, carried interest example is one. and another is why doesn't the rate just go down, you know, to, say, 35% for everyone like he had discussed? >> 28% where reagan left it -- they're trish hey, i'd take that
sir. >> jerry brown had it down to 13%. it's not just republican or dem the accurate, it's bipartisan. everyone knows what the right tax bill but, honestly, trish, if you had your way on all of this tax stuff, what would we do for the next six years, seven years in office? trish: you're telling me he's going to go back at it again -- >> of course we are. and again and again and again. trish: -- to get more done on the individual side once you see a lift up on the corporate side? >> and the democrats will join us, they really will. this is a long process. in 1946 the highest marginal income tax rate was 93%. we've dropped that way down, corporate rates well over 50%, capital gains rates in the 1970s were over 100%. we're move anything the right direction, it just takes time. trish: it's unfortunate some people have to work all the way to july before they actually pay themselves. >> that is true, it is very unfortunate -- trish: and i think that has to change, so i want you to go back at it.
of i'm going to hold you to your word. everybody's saying they're going to go back at it -- >> well, can i give you the nixon quote? i'm fit, tan, rested and ready to run, trish. we've got another couple of rounds to go. remember, it was '86 act from reagan that was really the wonderful bill that really created long-term prosperity. trish: art, i always love hearing your optimism. you always make me feel better. [laughter] >> you're terrific on the show. i'd hate to be there in studio, some of these days i'll get a black eye. trish: bye, laffer, a pleasure. thank you, sir. we'll be right back.
he is the to pay less percentagewise. it's important to say on it. this is something that they could have fixed and they should have fixed. we are not getting any give on this issue. coming up we just really need to focus on this and push it. still in their untouched happy as a clam. we are going to ask.