TRISH: PRETTY BIG WIN FOR THE
PRESIDENT.
HE SIGNS THE REPUBLICAN TAX BILL
INTO LAW TODAY.
NOW THE FOCUS IS ON 2018.
SOURCES TELLING FOX, TOP TRUMP
ADVISORS HAVE EXPRESSED WORRIES
OVER MIDTERM ELECTIONS.
THE ADVISORS TELLING THE
PRESIDENT THERE MUST BE CHANGES
TO THE WHITE HOUSE POLITICAL
OPERATION IF THEY DO NOT WANT TO
KARL ROVE, GOOD TO SEE YOU.
>> MERRY CHRISTMAS, TRISH.
TRISH: 2018, MIDTERMS, ARE THE
>> ABSOLUTELY.
AND, THEY BETTER START USING THE
TAX BILL AS A WAY TO GO ON THE
OFFENSE AND THE GOOD NEWS THEY
CAN DO SO BECAUSE THE DEMOCRATS
SAID IF YOU TAKE INTO ACCOUNT
ADJUSTED GROSS INCOME, GET 11.2%
CUT IN THEIR TAXES.
MAKING MORE THAN A MILLION, GET
A 5.9% IN THEIR TAXES.
THIS TAX BILL IS PROGRESSIVE.
THAT IT IS TO SAY PUTTING MONEY
IN HANDS OF ORDER SNARERY PEOPLE
ANOTHER WAY TO LOOK AT --
TRISH: SOME DON'T NECESSARILY
A BIGGER TAX BREAK BUT DEMOCRATS
DON'T HAVE A LEG TO STAND ON
BECAUSE THAT THE MIDDLE CLASS
ISN'T GET AING A BREAK BECAUSE
THEY ARE.
>> THIS AGAIN IS FROM THE JOINT
COMMITTEE ON TAXATION.
THIS IS THEIR DISTRIBUTION
TAX BURDEN.
SHARE OF OVERALL TAX BURDEN WHEN
THIS IS DONE.
MIDDLE CLASS, THOSE PEOPLE THAT
INCOME, THEY PAY 38% OF THE TAX
NEARLY 60% OF THE TAX BURDEN,
GET 44% OF THE TAX CUT.
THIS IS GEARED TO THE MIDDLE
CLASS F YOU'RE PAYING TAXES IN
THE MIDDLE CLASS, YOU GET A
BIGGER CHUNK OF THE TAX CUT DO
PEOPLE ABOVE YOU AND BELOW YOU.
MIDDLE CLASS, THEIR SHARE OF THE
TAX CUT, TWICE AS BIG AS TOP 5%.
AND THREE TIMES AS BIG AS TOP
1%, CAN, MEASURED BY WHAT SHARE
OF TAX CUT GOES TO THAT GROUP.
TRISH: I AGREE WITH YOU.
I DON'T EVEN NECESSARILY LIKE IT
BECAUSE, I WOULD SAY I, IF I HAD
BEEN THEM WOULD HAVE CUT TAXES
AS YOU WENT UP THE SCALE OR, YOU
NOVELL AD SOME KIND OF A FLAT
TAX.
THAT IS STORY FOR ANOTHER DAY.
>> YEAH.
>> ARGUMENT THE REPUBLICANS JUST
CUT TAXES FOR RICH, MAKES NO
ABSOLUTELY SENSE WHATSOEVER.
>> MAKES NO SENSE AT ALL.
LET DEMOCRATS MAKE THE ARGUMENT.
THE MIDDLE CLASS WILL SEE IT AND
FEEL IT.
IF THEY DO WE'LL BE OKAY.
IF THEY DON'T OR WE DON'T ENGAGE
IN THE ARGUMENT, EFFECTIVELY
MAKE THE ARGUMENT REPUBLICANS
ARE GOING TO BE IN TROUBLE.
SO FAR WE HAVEN'T DONE A
PARTICULAR GOOD JOB SELLING BUT
WE HAVE PLENTY OF TIME TO SELL.
TRISH: I HEAR WHAT YOU'RE SAYING
THIS IS THE ONE AREA THAT THEY
COULD GET YOU ON, KARL.
DECIDES TO AND TREASURY DECIDES
TO AND THEY REINTERPRET THE IRS
LAWS AND THAT'S PRIVATE EQUITY
INVESTORS CALLING THEIR
INVESTMENT INCOME.
AND I JUST WANT TO BACK UP.
A LOT OF PEOPLE FET CONFUSED BY
THIS.
IF I INVEST I SHOULD GET A
BREAK, RIGHT BECAUSE I PAID
PUTTING THEIR OWN MONEY INTO THE
MARKETS AND NEW INVESTMENTS.
IF THEY FIND SOMETHING AND THEIR
BUT KARL, A LOT OF THESE
INVESTORS, THEY'RE INVESTING ON
BEHALF OF YOU OR ME.
THEN THEY'RE SAYING KARL, TRISH,
YOU MADE ALL THE MONEY.
I WILL TAKE MY 20% FEE.
THAT FEE IS THEIR INVEST, WHEN
IT WAS NEVER THEIR INVESTMENT,
KARL.
THIS IS, WE'RE TALKING TO THE
TUNE OF $180 BILLION.
IT IS NOT FAIR.
MEANS SAYING NEW YORK CITY COP
MAKING 400 PLUS MILLION DOLLARS
A YEAR.
>> YEAH.
TRISH: THAT ISING SOMETHING THEY
CAN BANK ON, KARL?
>> YOU KNOW WHAT?
THAT ISSUE OF CARRIED INTEREST,
YOU CAN ARGUE IT ROUND, YOU
COULD ARGUE IT FLAT.
THEY WOULD ARGUE THAT IS THEIR
SWEAT EQUITY WHAT THEY BRING
INTO THE TABLE.
THEY'RE PUTTING THEIR ENERGY AND
EFFORT INTO THIS CONVERSATION.
YOU'RE PUTTING IT INTO TOO.
>> I GOT IT.
>> TRISH THAT ARGUMENT IS OVER.
IT DIDN'T HAPPEN.
UNLESS THE PRESIDENT WANTS TO
BRING IT UP, MAKE IT A
CENTERPIECE OF 2018.
HE HAS TO HAVE --
TRISH: -- THEY HAVE NO INTEREST
IN FIXING IT EITHER.
>> LOOK, GOT TO HAVE THE VOTES
TO DO THAT.
THE QUESTION DOES HE HAVE THE
VOTES AND DOES HE HAVE THE
INTEREST IN DOING THAT.
IT DIDN'T HAPPEN IN THE BILL
ITSELF.
AND I DOUBT THAT IT IS GOING TO
HAPPEN NEXT YEAR.
REPUBLICANS ARE BETTER OFF
DEFENDING BILL AND MAKE CERTAIN
PEOPLE UNDERSTAND IT, RATHER
THAN REOPENING UP.
TRISH: FAIR SOMEHOW A
NEW YORK CITY COP HAS TO PAY
MORE PERCENTAGEWISE THAN STEVE
SCHWARZMAN?
THE PRESIDENT HAS MADE THIS
ISSUE OUT OF IT.
>> WAIT A MINUTE.
WAIT A MINUTE.
NEW YORK CITY COP DOESN'T PAY
MORE.
TRISH: YES, THE NEW YORK CITY
COPPERSAGEWISE, TRY 27% ON THE
NEW PLAN.
VERSUS 20% IF YOU'RE FALSELY
>> SLIPPERY SLOPE, TRISH BECAUSE
DOES THE RETIREE ON HIS SAVINGS.
SHOULD WE MAKE THEM BOTH PAY THE
SAME RATE?
TRISH: NO.
THIS IS APPLES AND ORANGES.
KARL, THE PRIVATE EQUITY
INVESTOR THAT IS TAKING 20% OF
YOUR RETURN, IF IT IS HIS MONEY,
FINE, YOUR RETURN, THAT IS
LABOR.
THAT IS LABOR.
AND THEREFORE HE SHOULD PAY
INCOME TAX ON IT.
MANAGED TO GET AWAY WITH THAT
AND IT'S WRONG.
>> WELL, TRISH, I APPRECIATE
OF ALL TWO THINGS, ONE, HE WANTS
TO MAKE IT A MAJOR ISSUE IN
OVER THE TAX REFORM BILL THAT HE
WANTS TO MAKE IT A MAJOR ISSUE.
AND TWO, THAT HE HAS GOT THE
VOTES TO GET IT DONE IN
REPUBLICAN HOUSE.
THEY'RE DONE IN MY OPINION,
WITH, THEY HAVE ALREADY GONE
THROUGH MEAT GRINDER ON TAX
REFORM ONCE.
THEY'RE NOT GOING ON IT AGAIN.
LOOK, IT IS FINE TO GET
PASSIONATE ABOUT IT BUT AIN'T
GOING TO HAPPEN UNTIL THE NEXT
TIME WE HAVE LOTS OF OTHER
THINGS BUBBLING UP ABOUT TAX
REFORM CAUSE THIS ONCE EVERY 20
YEARS, ONCE EVERY 25 YEAR
ATTEMPT TO REFORM TAXES.
>> IT COULD BE A GOOD POLITICAL
ISSUE.
HE BROUGHT IT UP OVER AND OVER
KARL --
>> I THINK MOST PEOPLE HAVE NO
IDEA WHAT CARRIED INTEREST IS.
WHAT THEY WANT TO KNOW, ARE YOU
CUTTING MY TAXES.
>> WHY WE NEED TO EDUCATE THEM.