THEIR EARNINGS THANKS TO WHAT IS
HAPPENING IN WASHINGTON D.C. OR
WHAT HAS HAPPENED.
IN THE MEANTIME, FOX BUSINESS
EXCLUSIVE, WHEN ARE ALL OF US
GOING TO FEEL SOME TYPE OF
DIFFERENCE HERE?
SCOTT HODGE IS THE PRESIDENT OF
THE TAX FOUNDATION.
WE'RE SO GLAD TO KICKOFF 2018
WITH YOU, BUT WE NEED TO KNOW
RIGHT NOW WHAT WILL BE THE FIRST
SIGNS AND THE FIRST FEEL THAT
THE TAX PLAN IS HELPING PEOPLE
OUT THERE?
>> LIZ, WE'RE LOOKING AT A
COUPLE DIFFERENT THINGS BUT
FIRST AND FOREMOST REALLY
DURABLE GOODS ORDERS.
THE NEW TAX BILL IS NOT ONLY
SMALL BUSINESSES BUT THEY'VE
MOVED TOWARD FULL EXPENSING,
SEE HOW BUSINESSES START OFF THE
NEW SERVERS, NEW COMPUTERS AND
ALL OF THAT AND THAT'S GOING TO
TRANSLATE INTO THE PROVIDERS,
THE EQUIPMENT MANUFACTURES AND
GOING TO HAPPEN HOPEFULLY IN THE
NEXT COUPLE MONTHS.
LIZ: I KNOW YOU EXPERIENCED THIS
BECAUSE I HAD MORE PEOPLE
CALLING ME AND ASKING EVERYONE
TELLING ME MY ACCOUNTANT CALLED
ME AND SAID I NEED TO DO THIS
AND NEED TO DO THAT BUT THERE'S
ONE THING THAT I AM HEARING WILL
IMMEDIATELY CONVERTING TO PASS
THROUGH BUSINESSES.
THEY WILL SAY YOU KNOW WHAT?
PAY ME IN MY LLC, PAY ME IN MY
BUSINESS SO I GET THAT LOWER TAX
RATE THAT THE PASS THROUGHS ARE
REVENUE?
PUTS IN A LOT OF GUARDRAILS TO
PREVENT THAT KIND OF BEHAVIOR.
THEY WERE VERY WORRIED THAT
YOU'D HAVE ACCOUNTANTS AND
DOCTORS AND LAWYERS AND
ARCHITECTS CHANGING THEIR WAGE
INCOME INTO BUSINESS INCOME IN
ORDER TO TAKE ADVANTAGE OF THOSE
>> WELL THEY CARVE THOSE PEOPLE
OUT SO MAKE SURE THAT YOU DO
CHECK WITH YOUR ACCOUNTANTS AND
YOUR TAX LAWYERS TO MAKE SURE
THAT YOU ARE ELIGIBLE AND YOU'RE
NOT PART OF THAT EXCLUDED GROUP
OF BUSINESSES THAT THEY JUST
DON'T WANT TO ALLOW THAT LOWER
RATE.
LIZ: WELL ON YOUR SCREEN ARE A
WHOLE BUNCH OF COMPANIES THAT
SAID THEY WERE GOING TO GIVE
BONUSES.
NOW, WE ALSO HEAR THAT EVERYONE
FROM GOLDMAN SACHS TO OTHER
BUSINESSES ARE HAVING TO WRITE
BIG CHECKS TO THE GOVERNMENT
SORT OF ONE-TIME.
>> ONE-TIME.
LIZ: YEAH, TAX CHECKS, BILLIONS
OF DOLLARS.
ARE WE TO SEE THAT AS A NEGATIVE
OR A POSITIVE?
>> WELL I THINK IT'S JUST A COST
OF TRANSITION IN MOVING TO THE
NEW TAX SYSTEM, AND YOU KNOW,
WE'VE GOT A LOT OF THINGS ON OUR
OLD BOOKS THAT WE'RE GOING TO
HAVE TO CLEAN OUT.
ON THE FOREIGN EARNINGS THAT
THEY HAVEN'T BROUGHT BACK TO THE
UNITED STATES, AND THAT'S ALL
PART OF CLEARING OUT THE OLD TAX
SYSTEM AND MOVING TOWARD THE NEW
ONE.
LIZ: SCOTT ONE LAST QUESTION
BECAUSE WE TALKED A LOT ABOUT
CARRIED INTEREST THE SO-CALLED
LOOPHOLE THAT THE VERY WEALTHY
PRIVATE EQUITY BILLIONAIRES GET
TO TAKE ADVANTAGE OF LEGALLY.
IT DID NOT GO AWAY AS THE
PRESIDENT HAD PROMISED, AND
CONGRESS SOMEHOW LEFT IT IN.
YOU'VE ACTUALLY CALCULATED HOW
MUCH REVENUE CARRIED INTEREST
IF IT WERE ELIMINATED.
WHAT IS THE NUMBER HERE BECAUSE
I'VE SEEN NUMBERS ALL OVER THE
$2 BILLION A YEAR IN NEW REVENUE
OR ABOUT $20 BILLION OVER A
DECADE AND SORT OF THE GRAND
SCHEME OF THINGS IT'S NOT A HUGE
AMOUNT OF MONEY BUT IT'S REALLY
SYMBOLIC AND AS YOU SAY WHETHER
YOU'RE ALLOWING THESE FAT CATS
ON WALL STREET TO GET A LOWER
TAX RATE WERE THOSE OF PEOPLE
WORKING ON WAGE INCOME HAVE TO
PAY THE HIGHER RATE.
A LOT OF PEOPLE DO JUST SEE IT
>> I DO.
I DO ABSOLUTELY.
THERE ARE GUYS ON WALL STREET
WORKING FOR SALARY WHO ARE
PAYING 35 OR 39.6% RATE WHILE
THE OTHER GUYS AT THE HEDGE
FUNDS ARE ONLY PAYING 20%.
THAT'S SIMPLY NOT FAIR.
LIZ: WELL SCOTT YOU AGREE WITH
US I LIKE IT.
THANK YOU VERY MUCH FOR JOINING
ME.
>> [LAUGHTER]
YOU BET.
LIZ: HAPPY NEW YEAR.