WOULD BE PRESUMABLY AS HIGH, IF
NOT HIGHER THAN THAT, SO AS NOT
TO TEMPT CAPITAL AWAY FROM THE
UNITED STATES.
THAT MIGHT PROVE A LITTLE EASIER
SAID THAN DONE.
CHARLES PAYNE WITH US, NOW,
"MAKING MONEY" HOST,
BEST-SELLING AUTHOR.
WHAT DO YOU MAKE OF THAT,
CHARLES?
HE IS TRYING HARD TO SAY TAXES
GOING UP WON’T DING THIS ECONOMY
ONE LITTLE BIT.
WHAT DO YOU THINK?
>> ISN’T THERE SOMETHING IRONIC
ABOUT HIM SAYING THAT AND YET
JANET YELLEN ON THE SAME DAY
TRYING TO GET THE REST OF THE
WORLD TO LOWER THEIR TAXES AS
WELL?
IT’S A DEFACTO ADMISSION WHAT
PRESIDENT BIDEN WANTS TO DO
HIKING CORPORATE TAXES WILL MAKE
COMPANIES LEAVE.
THE ONLY THING THAT MAYBE THAT
CAN STOP THEM IS IF THEY CAN
SOMEHOW GET OTHER COUNTRIES TO
LOWER, RAISE THEIR TAXES.
NEIL, IT’S NUTS, REALLY.
I’M LOOKING AT THE AVERAGE OF
ASIA, 20%.
EUROPE, 19.9%.
THE EU, 27, 21.5%.
IT’S, THEY’RE NOT GOING TO DO
IT.
IT JUST DOES NOT MAKE SENSE.
WE’RE TALKING ABOUT BRINGING
BACK INVERSIONS.
EVERYONE SAYS ALL THE LARGE
CORPORATIONS WERE SAYING SIGH
FAR TO AMERICA.
THEY ARE SAYING IT IS THE BOTTOM
LINE.
NEIL: IF THE COUNTRIES REFUSE TO
PLAY ALONG, REFUSE TO RAISE
THEIR RATES OR AGREE ON AN
ACCEPTED GLOBAL RATE WHAT WOULD
BEHOOVE THEM TO DO THAT?
THEY’RE ALREADY LOOKING AT YOU
KNOW, ESPECIALLY THE COUNTRIES
THAT LOWERED THEIR TAXES ALONG
WITH THE TRUMP TAX CUTS A COUPLE
YEARS BACK.
THEY’RE SEEING NOTICEABLE BOOMS
IN ACTIVITY.
TALKING ABOUT WHAT IS GOING ON
IN GERMANY, BRITAIN, INVESTMENT
RELATED TAXES THAT FELL IN
PLACES LIKE ITALY AND FRANCE WHY
WOULD THEY WANT TO KILL THAT
GOLDEN GOOSE, RIGHT?
>> I JUST CAN’T, I CANNOT
IMAGINE WHAT THE OFFER CAN BE.
I DON’T KNOW WHAT TREASURY
SECRETARY JANET YELLEN WOULD BE
SAYING BEHIND CLOSED DOORS.
YOU KNOW, LOOK AT THESE
INVERSIONS.
BEFORE 1994 THEY DON’T EVEN TOO.
WE NEVER HEARD ABOUT THEM IN
COUNTRY.
2009 THERE WERE FIVE.
2011 THERE WERE TWO 2, EIGHT.
20137.
WE SAW WHEN THE OBAMA
ADMINISTRATION HIKED TAXES
CORPORATIONS FLED BIG TIME.
A LOT OF MONEY OVERSEAS, EVEN IF
THEY DIDN’T MOVE HEADQUARTERS,
THEY DIDN’T BRING IT BACK.
APPLE HAD A TRILLION DOLLARS
OFFSHORE.
WE’LL NOT GET THE MONEY BACK
INTO THIS COUNTRY.
IT WON’T GO BACK INTO PRODUCTIVE
USES.
COMPANIES WILL TRY THEIR BEST TO
LEAVE.
OTHERS WON’T BRING MONEY BACK.
THEY WILL GET DINGED WITH SOME
SORT OF PENALTY WHICH WOULD MAKE
IT MORE LIKELY THEY WILL BRING
THE MONEY BACK.
THIS IS A TOUGH ONE.
THIS IS REALLY, YOU KNOW, I
THINK, I HEARD THE CLIP WITH
PRESIDENT BIDEN, NEIL, AND HE
WILL HAVE TO GIVE ON A LOT OF
THIS SO-CALLED INFRASTRUCTURE.
REPUBLICANS ARE ALREADY SPENT
THE ENTIRE WEEKEND WE’RE COOL
WITH 650 BILLION OF IT.
WE UNDERSTAND WHAT POTHOLES ARE.
WE KNOW WE NEED TO PATCH UP
BRIDGES.
A LOT OF THE OTHER STUFF YOU’RE
DESCRIBING AS INFRASTRUCTURE
SIMPLY IS NOT.
NEIL: I’M WONDERING WHAT IS
BEHIND THE MARKET RALLY THEN?
IS IT THE BELIEVE THE PACKAGE
WILL HAVE TO BE SIGNIFICANTLY
ALTERED, TAX HIKES REALLY
PLANNED ARE SCALED BACK OR JUST
FOCUSING ON THE GOOD
POST-PANDEMIC NEWS?
AMC GETTING AN UPGRADE AFTER A
VERY STRONG WEEKEND TICKET SALES
FOR THIS GODZILLA CONG MOVIE,
WHICH IS IDIOTIC, CHARLES, BUT I
DIGRESS.
ALL THE OTHER SIGNS, CASINO
STOCKS, THEM GETTING UPGRADES ON
THE BELIEF THAT PEOPLE ARE BACK,
THAT FLYERS ARE BACK, TRAVELERS
ARE BACK AND THAT THAT’S WHAT IS
BUOYING STOCKS.
WHAT DO YOU THINK?
>> I THINK THE REOPENING OF THE
ECONOMY, LISTEN, WE HAD THE ISM
SERVICE NUMBER, THE BEST NUMBER
EVER SINCE THEY HAVE BEEN
WATCHING THIS SINCE 1983.
WE SAW THE MANUFACTURING DATA,
SEVEN MANUFACTURING REPORTS IN A
ROW THROUGH THE ROOF.
THE HOUSING BOOM STILL
CONTINUES.
IT IS SOMETHING, YOU COULD
ALMOST ARGUE A JOBLESS RECOVERY.
THAT IS THE ONLY REAL PROBLEM
DESPITE THOSE 900 HOW BUT
REOPENING THIS COUNTRY, LETTING
PEOPLE GO OUT THERE TOE SPEND
THEIR HARD-EARNED MONEY.
I BELIEVE THE MARKET SENSES
ULTIMATELY WE WON’T GO BACK TO
28%.
SOMEONE LIKE SENATOR MANCHIN
SAYING THAT IS TOO MUCH EVEN FOR
HIM.
IF YOU GET 24%, THEN WALL STREET
CAN LIVE WITH THAT.
YOU KNOW, BUT, YOU KNOW, IT IS,
REMAINS TO BE SEEN.
MEANTIME THEY’RE LOOKING AT ALSO
THE YIELDS.
THEY SPIKED.
WE HAD THE LITTLE NERVOUS FIT.
THAT IS STARTING TO FADE AWAY.
NEIL: RIGHT.
>> ON THURSDAY THE VIX FELL
COMPLETELY THROUGH THE FLOOR,
THE SO-CALLED FEAR INDEX.
ALL OF THAT ANXIETY IS SORT OF
FADING AWAY.
NOW IT IS FEAR OF MISSING OUT
COMING BACK INTO THE MARKET
AGAIN.
NEIL: WELL IT IS CLEARLY
HAPPENING TODAY, MY FRIEND.