>>> NOT ONLY WILL THIS PAY FOR ITSELF, BUT IT WILL PAY DOWN
DEBT.
DEBT. >> WE’RE RIGHT THERE IN THE
SWEET SPOT WITH ECONOMIC GROWTH
THAT GIVES US MORE REVENUE.
>> IT’S NOT ONLY REVENUE NEUTRAL
TO THE GOVERNMENT BUT IS VERY
LIKELY TO BE A REVENUE PRODUCER.
>> TIME FOR MONEY, POWER
POLITICS.
POLITICS. TODAY WE’RE GOING TO TAKE A
CLOSER LOOK AT THE SOARING U.S.
DEFICIT FALLING REVENUES THANKS
TO GOP TAX CUTS AND INCREASED
SPENDING PUSHING THE COUNTRY
DEEPER INTO DEBT.
THE FEDERAL DEFICIT INCREASED BY
$113 BILLION DURING FISCAL YEAR
2018, A 17% INCREASE OVER 2017.
BRINGING THE DEFICIT TO $779
BILLION.
BILLION. WHAT DOES THAT MEAN?
AND DO PEOPLE CARE?
AND IF THEY DON’T, SHOULD THEY?
JOINING ME NOW POLICY ADVISER
WITH AMERICA FIRST POLICIES, AND
SENATOR TORCELLI BACK WITH ME.
ANDY JUST GOT HERE.
I’M GOING TO LET HIM GO FIRST.
WE KNOW THE DEFICIT HAS GONE UP.
REPUBLICANS ARE IN POWER.
WE’RE NOT AT WAR.
HOW IS IT THAT WE CAN HAVE
INCREASED SPENDING AND TAX CUTS
AT THE SAME TIME?
>> WELL, I THINK THE BENEFITS --
COMPARED TO LAST YEAR, REVENUE
WAS BASICALLY FLAT.
IT WAS UP A LITTLE, BUT IT WAS
BASICALLY
BASICALLY FLAT.
FLAT. IT WASN’T DOWN DESPITE THE TAX
CUTS.
CUTS. IT DIDN’T MEET FORMER
PROJECTIONS BUT IT DID EXCEED
LAST YEAR’S REVENUE.
THE PROBLEM WITH TAX CUTS IS YOU
IMMEDIATELY EXPERIENCE THE
DETRIMENT.
DETRIMENT. WE HAVE VERY, VERY GOOD ECONOMIC
GROWTH SO IT KEPT THE REVENUE
FLAT.
FLAT. WITH ECONOMIC GROWTH DOESN’T
OCCUR IMMEDIATELY UPON THE TAX
CUTS.
CUTS. FOR EXAMPLE, IN THE INDUSTRY I
WAS IN, THE RESTAURANT INDUSTRY.
WHEN YOU GET A TAX CUT, YOU GET
BENEFITS, YOU WANT TO GROW.
IT TAKES YOU TIME TO FIND THE
PROPERTY YOU WANT TO DEVELOP.
IT TAKES YOU TIME TO FIND A
CONTRACTOR.
CONTRACTOR. YOU HAVE TO HIRE PEOPLE.
THAT COULD BE A TWO YEAR
PROCESS.
PROCESS. WHEN IT COPS TO BUSINESSMES TO B
INVESTINGS
INVESTINGS INVESTING, YOU WON’T SEAT IE IT
THE FIRST MONTHS.
IT WILL TAKE A COUPLE OF YEARS.
SPENDING WENT WAY UP WITH THE
AGREEMENT THAT THE PRESIDENT CUT
WE HAVE A DIVIDED GOVERNMENT.
THE PRESIDENT CUT A DEAL WITH
THE DEMOCRATS TO MAKE THE
CAPITAL INVESTMENT IN THE
MILITARY THAT WE NEEDED TO MAKE
AND TO GET THE VOTES AND THE
DEMOCRATS IN THE SENATE, HE
CONCEDED ON SOME DOMESTIC
SPENDING.
SPENDING. >> EVEN WITH TOTAL CONTROL,
WE’RE STILL GOING TO BLAME THE
DEMOCRATS FOR THE SPENDING.
>> THERE’S STILL A FILIBUSTER.
THERE’S NOT TOTAL CONTROL.
>> SENATOR.
>> SENATOR. >> TO PUT THIS IN PERSPECTIVE,
THE COUNTRY IS HEADED FOR A 100%
GDP LEVEL OF DEBT.
A TRILLION DOLLARS A YEAR.
THE LAST TIME THE UNITED STATES
HAD THAT LEVEL OF DEBT TO GDP,
WE WERE COMPLETING THE MANHATTAN
PROJECT, INVADING NORMANDY AND
GETTING READY TO INVADE JAPAN.
WE ARE HEADING THERE IN RELATIVE
PEACE AND TIMES OF PROSPERITY.
WE ARE BORROWING FROM THE
AMERICAN FUTURE.
AMERICAN FUTURE. WE HAVE BECOME A NATION THAT IS
NOT -- A GENERATION THAT CANNOT
BE TRUSTED TO PROTECT THE
AMERICAN FUTURE BECAUSE WE’RE
ADDICTED TO OUR OWN CONSUMPTION.
>> ANDY, IN GENERAL, PEOPLE,
EVERY DAY PEOPLE, DON’T CARE
ABOUT THE DEFICIT BECAUSE IT
SEEMS --
SEEMS -- >> THEY SHOULD.
>> THEY SHOULD.
BECAUSE IT SEEMS OBSCURE.
THE EXACT ARGUMENT THE SENATOR
IS MAKING IS THE ARGUMENT WE
HEARD FROM DECADES FROM
REPUBLICANS BUT THEY’RE NOT
MAKING IT NOW.
WHY?
WHY? >> THEY SHOULD.
WE NEED ECONOMIC GROWTH AND
INCREASED REVENUES AND WE NEED
TO REDUCE OUR SPENDING.
WE’RE SPENDING WAY TOO MUCH.
I DON’T THINK THERE’S ENOUGH
WASTE IN THE DISCRETIONARY
BUDGET.
BUDGET. WE NEED TO LOOK AT THE
ENTITLEMENTS PORTION TO SEE WHAT
QUESTION DO TO REDUCE SPENDING
FLP.
FLP. THERE ARE THINGS THAT DON’T
REDUCE BENEFITS THAT REDUCE
SPENDING.
SPENDING. WE HAVE TO ADDRESS THAT.
>> WE’RE REALLY GOING TO GO WITH
THE MITCH McCONNELL ARGUMENT,
LET’S CUT CORPORATE TAX IN HALF
AND GO AFTER ENTITLEMENTS.
THAT’S THE ANSWER?
>> THIS IS LIKE THE SLOW PITCH
OVER THE PLATE.
YOU COULD SEE THIS COMING FOR
THE PAST TWO YEARS.
THEY COME UP WITH A MASSIVE TAX
CUT THAT GOES TO THE UPPER 1% OF
THE AMERICAN PEEP AND ARGUE THE
ONLY WAY TO SOLVE IT IS
MEDICARE, MEDICAID AND SOCIAL
SECURITY.
SECURITY. NO.
NO. THIS IS NOT A SPENDING PROBLEM.
IT’S A REVENUE PROBLEM.
WE CUT TAXES DURING A PERIOD OF
ECONOMIC GROWTH AND WE DID NOT
SHARE IT WITH ALL THE AMERICAN
PEOPLE.
PEOPLE. THAT’S HOW WE GOT HERE.
THAT’S THE ONLY WAY WE’RE GOING
TO GET OUT OF IT IS REVERSING
IT.
IT. >> CORPORATE TAXES WERE DOWN $92
BILLION BUT INDIVIDUAL TACKXES
WERE UP $96 BILLION.
EVEN IF REVENUE HAD BEEN WHAT IT
WAS PROJECTED TO BE, WE WOULD
STILL HAVE HUGE DEFICITS.
THE ONLY WAY TO GET HUGE REFRVEN
IS THROUGH ECONOMIC GROWTH.
YOU HAVE TO GIVE BUSINESSES TIME
TO INVEST.
TO INVEST. >> I AGREE.
ULTIMATELY THE ONLY WAY TO GET
OUT OF THIS IS TO GROW OUT OF
IT.
IT. I ONCE ASKED WHAT’S THE
APPROPRIATE LEVEL OF AMERICAN
DEBT.
DEBT. HE SAID I CAN’T ANSWER THAT.
I SAID WHY NOT.
HE SAYS BECAUSE IF WE’RE $500
BILLION IN DEBT AND WE PRODUCED
A MODERN RAILROAD SYSTEM.
WE’RE EDUCATING AMERICAN KIDS
AND GRADUATING THEM WITHOUT
DEBT.
DEBT. WE’RE FULLING FUNDING AMERICAN
SCIENCE LABS, WE HAVE.
WE HAVE A MODERN INFRASTRUCTURE
AND INTERNET FOR THE AMERICAN
PEOPLE.
PEOPLE. THAT’S A GOOD DEBT.
THE PROBLEM WITH AMERICA IS
WE’RE GOING A TRILLION DOLLARS
IN DEBT.
IN DEBT. WE DON’T HAVE A GOOD EDUCATIONAL
SYSTEM BEING PAID FOR.
WE DON’T HAVE A MODERN
INFRASTRUCTURE.
INFRASTRUCTURE. WE’RE NOT MODERNIZING OUR
SCIENCE LABS.
SCIENCE LABS. WHAT WE’RE GETTING A TAX CUT TO
PRIVILEGE AMERICANS.
PRIVILEGE AMERICANS. NOTHING.
NOTHING. >> ANDY, YOUR LAST POINT.
IF THE KEY TO EVERYTHING IS
GROWTH, THE FACT WE’RE IN A
POSSIBLE TRADE WAR WITH CHINA
AND YOU HEAR FROM PEOPLE SAYING
WE’RE SEEING GLOBAL GROWTH SLOW
BECAUSE OF TRADE ISSUES, DOESN’T
THAT GIVE YOU CONCERN?
>> WE DO NEED TO REDUCE THE DEBT
BUT THE FIRST LEG IS TO REDUCE
THE DEFICIT.
THE DEFICIT. YOU CAN ONLY REDUCE REVENUE AND
REDUCE SPENDING.
REDUCE SPENDING. >> WE’RE DOING NEITHER.
>> WE NEED TO DO BOTH.
THE IDEA OF THE TAX CUTS IS THEY
WILL INCREASE REVENUE.
I DON’T THINK ANYBODY EXPECTED
REVENUE.
REVENUE. >> THAT’S NEVER HAPPENED.
WE TRIED THAT.
WE TRIED IT IN REAGAN YEARS,
BUSH YEARS, TRUMP YEARS.
WE TRIED IT.
WHEN DO WE LEARN THAT DOESN’T
WORK?
WORK? >> REVENUES WENT UP IN THE
REAGAN YEARS.
REAGAN YEARS. THEY WENT UP AFTER CLINTON CUT
TAXES.
TAXES. >> THE DEFICIT TRIPLED.
>> THE DEFICIT GOES UP BECAUSE
WE SPEND MORE THAN THAN REVENUE.
>> WE ARE OUT OF TIME GENTLEMEN.
WE MOE THE CORPORATE TAX CUTS
DID ONE THING.