THE GOP IS ROLLED OUT THEIR BLUEPRINT FOR THE TAX PLAN, AND
SEVERAL MEDIA ORGANIZATIONS INCLUDING THE ASSOCIATED PRESS
AND NEW YORK TIMES HAVE GOTTEN THEIR HANDS ON IT.
BEFORE WE GET
INTO THE DETAILS WE DO KNOW, LET ME BE CLEAR ABOUT THE FACT THAT
THERE ARE MANY DETAILS WE DON'T KNOW.
FOR INSTANCE, WITH THESE
MASSIVE TAX CUTS HOW DOES THE GOP INTEND TO MAKE UP FOR THAT
LOST REVENUE?
ESSENTIALLY WHO ENDS UP PAYING, THAT IS UNCLEAR,
AND ESSENTIALLY THEY ARE SAYING WELL, WE ARE JUST GOING TO LET
THE TAX PEOPLE FIGURE THIS OUT.
AND IT'S A LITTLE CRAZY.
BUT
JUST TO GIVE YOU AN IDEA, THOSE WHO EARN THE LEAST, WHO PAY
ABOUT 10% IN FEDERAL TAXES, WOULD END UP PAYING 12% UNDER
THIS PLAN.
SO TAXES ACTUALLY DO INCREASE FOR THE LOWEST EARNERS.
LET ME GIVE YOU SOME MORE DETAILS --
SO AGAIN, THOSE IN THE LOWER END OF THESE TAX BRACKETS, THOSE
WHO PAY 10% IN FEDERAL TAXES, WOULD END UP PAYING 12%.
BUT THE
GOP IS SAYING WE ARE GOING TO INCREASE THE AMOUNT THAT PEOPLE
CAN DEDUCT SO THAT WILL MAKE UP FOR IT --
SO PEOPLE
WHO AREN'T THEIR CHILDREN, FOR INSTANCE.
THERE'S MORE, THERE'S A LOT MORE, BUT WHAT IS YOUR TAKE
ON THIS, GUYS?
FIRST OF ALL SIMPLIFYING THE TAX CODE, HAVING SEVEN BRACKETS
AND DROPPING IT DOWN TO THREE, THAT'S NOT A SIGNIFICANT -- THAT
DOESN'T MAKE IT SIMPLER.
IT JUST MAKES -- IT GIVES THEM THE RIGHT
TO CUT MORE TAXES FOR MORE PEOPLE, THAT'S ALL.
IT DOESN'T
MATTER WHAT THE OTHER BRACKETS ARE, YOU FIGURE OUT WHAT ONE YOU
ARE IN, THERE COULD BE 38, JUST FIND THE ONE YOU'RE IN AND
THAT'S THAT.
SO THEY ARE PRETENDING, AND THEY WILL DRIVE
HOME THE SIMPLICITY OF IT, BUT THE FACT IS THE TAX CODE WON'T
GET SIMPLER, THE RICHEST PEOPLE WILL STILL END UP PAYING FAR
LESS, AND I SUSPECT ON THE DEDUCTIONS THEY ARE PROBABLY
RIGHT, THAT RAISING IT FROM 10 TO 12 FOR THOSE AT THE VERY
BOTTOM WON'T DO ANYTHING, BECAUSE THEY WILL ZERO OUT
ANYWAY AND THEY ARE CLAIMING THAT MORE PEOPLE WILL BE IN THE
0% TAX BRACKET.
I'M DUBIOUS OF ANYTHING THEY CLAIM BUT RAISING
THE STANDARD DEDUCTION IS SIGNIFICANT.
BUT MERELY
PRESENTING A TAX PLAN WHERE YOU RAISE THE LOWEST RATE AND LOWER
THE TOP RATE IN THE COUNTRY WITH SCANDALOUS INCOME INEQUALITY
JUST SEEMS LIKE AS PUZZLING A DECISION AS A MAJOR POLITICAL
PARTY COULD MAKE, BUT OF COURSE IT'S THE DECISION WE KNEW THEY
WOULD MAKE.
AND ALSO KEEP IN MIND THAT WHENEVER THERE IS A DEMOCRAT IN
OFFICE, FOR INSTANCE WHEN OBAMA WAS IN OFFICE, THERE WAS A LOT
OF EMPHASIS ON THE DEBT.
WHAT ARE WE DOING ABOUT THE DEBT AND
THE DEFICIT?
AND THEY CLAIM THEY ARE FISCAL CONSERVATIVES, BUT IN
REALITY YOU HAVE TOM PRICE USING PRIVATE JETS FOR TRAVEL TO
PLACES WHERE HE HAS PRIVATE PROPERTY, AND NO PROBLEM WASTING
TAXPAYER MONEY ON STUFF LIKE THAT, AND THEN AT THE SAME TIME
THEY ARE PUSHING FOR A HUGE LOSS IN REVENUE.
NOW THIS STORY JUST
BROKE SO ANALYSIS HASN'T BEEN DONE YET THE KIND OF FIGURE OUT
EXACTLY HOW MUCH THE U.S.
WOULD LOSE IN REVENUE, BUT I'M SURE IT'S GOING TO BE
SIGNIFICANT, ESPECIALLY CONSIDERING THE FACT THAT
THEY ALSO WANT TO DO AWAY WITH THE ESTATE TAX.
THEY ARE SO NONSPECIFIC ABOUT WHAT THEY WANT TO DO TO COVER
THOSE LOSSES.
THEY WON'T BE TAKING INASMUCH MONEY SO HOW ARE
THEY GOING TO PAY FOR THINGS LIKE SOCIAL SECURITY?
I HAVE NO
IDEA.
SO IMMEDIATELY I THINK, DON, I DON'T WANT TO SEE IT.
THE ESTATE TAX AND THE ALTERNATIVE MINIMUM WOULD BE
REPEALED, THEY WANT TO DO AWAY WITH THE ESTATE TAX, THAT OF
COURSE WOULD LEAD TO A LOSS OF REVENUE FOR THE GOVERNMENT, AND
THEY WANT TO LOWER THE CORPORATE TAX RATE FROM 35% TO 20%.
I
WOULD ACTUALLY BE MAYBE OKAY WITH THAT, OR AT LEAST A LITTLE
MORE RECEPTIVE TO THAT, IF THEY ACTUALLY DO AWAY WITH THE
LOOPHOLES THAT THESE CORPORATIONS HAVE BEEN USING.
SO
IN SOME CASES SOME OF THE LARGEST, MOST PROFITABLE
CORPORATIONS DON'T PAY ANYTHING IN FEDERAL TAXES.
IN FACT IN
SOME CASES THEY ACTUALLY GET TAX REBATES.
BUT IF YOU WANT TO LOOK
AT ON AVERAGE THE TAX RATE, THE EFFECTIVE TAX RATE, FOR THESE
CORPORATIONS, IT'S ABOUT 18.7% AND IT'S BECAUSE OF THESE
LOOPHOLES AND DEDUCTIONS THEY CAN USE.
SO IF YOU DO AWAY WITH
THE DEDUCTIONS AND MAKE THESE CORPORATIONS PAY 20%
THEN WE ARE HAVING A CONVERSATION.
AND THEY ARE JUST GOING TO KEEP LYING, AND THAT'S THE KEY.
THERE ARE NO DETAILS HERE, THERE'S NOTHING FOR ANYONE TO
RUN BECAUSE THEY KEEP SAYING WE ARE GOING TO ELIMINATE MANY OF
THE PERSONAL DEDUCTIONS THAT AFFLUENT FAMILIES USE -- WHICH
ONES?
SO WE HAVE NO IDEA HOW IT WILL SCORE, BUT WE KNOW THEY
WILL LIE AGAIN AND AGAIN AND OBFUSCATE THE TRUTH.
TABLE KEEP
SAYING AMERICAN CORPORATIONS CAN'T COMPETE IN THE GLOBAL
MARKETPLACE, BUT OUR ECONOMY AT LEAST ON THE CORPORATE LEVEL IS
THRIVING.
THE DECEIT AND THAT IS EVIDENT IN WHAT WE SEE EVERY DAY
IN THE STOCK MARKET, IT COULDN'T BE DOING BETTER.
SO THEY CAN
OBVIOUSLY STAND TO PAY MORE OF THEIR FAIR SHARE.
BUT I AGREE,
IF THIS PREVENTS COMPANIES FROM PAYING ZERO -- BUT OF COURSE IT
WON'T.
IT'S RIDICULOUS FOR US TO SUPPOSE IT MIGHT, THERE IS
ZERO CHANCE OF THAT HAPPENING.
AND TO BE CLEAR ABOUT ONE OTHER COMPONENT WE ARE TALKING
ABOUT, THE ARGUMENT IS THAT IF WE JUST LOWER THE CORPORATE TAX
RATE THEN THESE CORPORATIONS WILL DEVELOP NEW JOBS AND THAT
WILL HELP THE MIDDLE CLASS.
IT'S PART OF THIS WHOLE NOTION OF
TRICKLE-DOWN ECONOMICS.
IT NEVER WORKS.
IT DOES NOT WORK, WE HAVE SO MANY CASE STUDIES TO PROVE THAT.
IN JANUARY TO INTERCEPT IT A GREAT JOB PROFILING SEVERAL BIG
CORPORATIONS -- CISCO, G.E.
-- WHAT DO THEY DO WITH THE TAX
BREAKS, WITH THAT EXTRA MONEY?
AND IN CALLS WITH THEIR
INVESTORS, IN LEGAL FILINGS, IT SHOWS OVER AND OVER AGAIN THAT
ALL THEY DO IS USE THAT MONEY TO CONSOLIDATE, ACQUISITIONS, AND
THEN WHAT HAPPENS AFTER ACQUISITIONS?
THEY LAY A BUNCH
OF PEOPLE OFF, SO PEOPLE ACTUALLY LOSE THEIR JOBS AS A
RESULT OF THESE TAX CUTS.
SO IT'S JUST ABSURD.
THE BEST CASE STUDY FOR IT IS THE 80S, THAT'S THE CASE STUDY
TO CITE, WHICH IS THAT THEY DID ENACT THESE SORTS OF THINGS, IT
DIDN'T WORK, AND WE WERE PAYING FOR IT WELL INTO THE 90S.
AND
PROBABLY STILL TODAY, I'M NOT AN ECONOMIST OBVIOUSLY -- BUT FOR
THEM TO GO BACK TO THIS, I KNOW TRUMP HAS AN APPEAL TO PEOPLE
WHO LIKE THINGS SIMPLIFIED AND THAT WAS KIND OF THE WAY HE RAN
AND THAT'S ABOUT AS NICE A WAY AS I CAN SAY THAT, THIS WILL
LOOK SIMILAR TO PEOPLE.
SOMEBODY CAN SAY I WAS PAYING X PERCENT
WHEN I WAS PAYING X PERCENT BEFORE, BUT LIKE SO MUCH ELSE
THAT HAS COME SO FAR FROM THIS ADMINISTRATION, MOSTLY DUE TO
EXECUTIVE ORDERS BECAUSE HE CAN'T GET A DAMN THING PASSED,
IF IT LOOKS GOOD ON PAPER THERE IS SOMETHING HIDING BEHIND IT.
HERE IS THE DEAL, YOUR TAXES ARE COMPLICATED.
THEY ARE
COMPLICATED BECAUSE WE RUN THE COUNTRY WITH THE MONEY YOU PAY.
AND EVEN IF YOUR TAX RATE IS 25%, IT WILL BE 12% FOR SOME OF
THE MONEY YOU MADE IN 25% WHEN YOU REACH A CERTAIN LEVEL
BECAUSE THAT'S ALWAYS HOW IT IS, IT'S COMPLICATED.
YOU MIGHT HAVE
SOME MONEY INVESTED, IF YOU DON'T HAVE MONEY INVESTED AND
JUST MAKE A SALARY YOUR TAXES ARE ALREADY MORE SIMPLE, YOU
FILL OUT A 1040 EZ, THE WORD EZ IS RIGHT IN THERE.
YOUR TAXES
ARE COMPLICATED BECAUSE RUNNING THE UNITED STATES OF AMERICA IS
HARD, WE NEED TO RAISE BILLIONS TO MAKE THE COUNTRY GO.
YOU
DON'T HAVE TO DO IT, YOUR ACCOUNTANT DOESN'T, OR YOU FILL
OUT THAT SIMPLE FORM.
YOUR LIFE WON'T BE MADE BETTER BECAUSE
INSTEAD OF SEVEN TAX BRACKETS AND A BUNCH OF OTHER NUMBERS,
THERE ARE NOW THREE.
IT MAKES NO DIFFERENCE, ONE NUMBER WILL ONLY
APPLY TO YOU.
IT DOES MAKE A DIFFERENCE TO YOU, BUT IT'S NOT IN THE
COMPLICATION OR SIMPLICITY OF YOUR TAXES.
IT MAKES A
DIFFERENCE WHEN IT COMES TO THE TUITION YOUR KIDS PAY FOR
COLLEGE, BECAUSE PUBLICLY FUNDED COLLEGES RECEIVE THEIR MONEY
FROM THE MOST PART FROM THE FEDERAL GOVERNMENT, IT HAS AN
IMPACT ON THE INFRASTRUCTURE IN YOUR STATE, THE FEDERAL
GOVERNMENT FUNDS PARTIALLY INFRASTRUCTURE PROJECTS.
ALL
THESE THINGS PEOPLE ENJOY WILL BE SACRIFICED IN ORDER TO GET
THE WEALTHIEST AMERICANS A HUGE TAX CUT, IN ORDER TO GIVE
CORPORATIONS A HUGE TAX CUT, AND IT'S ALL BEING DONE WITH THIS
RIDICULOUS IDEA THAT THESE CORPORATIONS ARE GOING TO MAYBE
TRICKLE-DOWN SOME OF THAT WELL FOR YOU, MAYBE CREATE SOME JOBS.
BUT AGAIN, CASE STUDY AFTER CASE STUDY PROVES THAT ISN'T THE
CASE.
CAN I READ A QUOTE THAT GOT ME?
THIS IS FROM TALKING POINTS
MEMO -- CORPORATIONS SEE THEIR TOP TAX RATE CUT FOR A PERIOD OF
FIVE YEARS COMPANIES CAN REDUCE HOW MUCH THEY PAY BY
IMMEDIATELY EXPENSING THEIR INVESTMENT IN CAPITAL GOODS.
THE
, NEW BENEFITS WILL BE GIVEN TO FIRMS IN WHICH THE PROPHETS
DOUBLE AS THE OWNERS PERSONAL INCOME.
THEY WOULD PAY AT A 25%
RATE DOWN FROM 39.6.
THIS CREATES A POSSIBLE LOOPHOLE FOR
RICH INVESTORS, LAWYERS, DOCTORS, AND OTHERS, BUT
ADMINISTRATION OFFICIALS SAY THEY WILL DESIGN MEASURES
TO PREVENT ANY ABUSES.
THEY DON'T TALK ABOUT WHAT THOSE MEASURES MIGHT BE.
AND ALSO, I'M TELLING YOU, THEY WON'T.
PAUL RYAN WON'T,
THEY WON'T.
THEY AREN'T CONCERNED ABOUT THAT.
AND THE
NOTION THAT THOSE SENTENCES STILL EXIST -- THE
ADMINISTRATION SAYS THE TAX PLAN IS FOCUSED ON MIDDLE-CLASS
FAMILIES, MIDDLE-CLASS FAMILIES WILL FARE POORLY BECAUSE THEY
DON'T CARE.
DOES ANYONE THINK THE KOCH BROTHERS ARE SAYING
WE'VE GOT TO GET MIDDLE CLASS FAMILIES -- DAVID?
ONE OF THEM
IS NAMED DAVID?
DAVID SAYS TO MYRON --
CHARLES.
WHERE IS MYRON?
THAT CONVERSATION ISN'T HAPPENING
WITH MYRON OR CHARLES OR DAVID KOCH.
THAT'S RIGHT.
BY THE WAY, REALLY QUICK WHEN IT COMES TO
DEDUCTIONS, THEY AREN'T CLEAR ABOUT WHICH DEDUCTIONS OR
LOOPHOLES THEY WILL DO AWAY WITH IN ORDER TO MAKE UP FOR THE LOSS
OF REVENUE BECAUSE THEY DON'T PLAN ON DOING AWAY WITH
DEDUCTIONS.
BUT THERE WAS ONE DEDUCTION I WAS REALLY CONCERNED
ABOUT BECAUSE IT'S THE ONLY DEDUCTION THAT REALLY DOES HELP
MIDDLE-CLASS FAMILIES, AND THAT'S THE MORTGAGE INTEREST
RATE DEDUCTION, RIGHT?
AND LIKELY BASED ON THIS BLUEPRINT
THEY WON'T TOUCH THAT.
EVERY TIME THIS TAX DEBATE COMES UP
AND REPUBLICANS SAY WE WANT TO DO AWAY WITH SOME OF THESE
DEDUCTIONS, THE FIRST DEDUCTION THEY TALK ABOUT IS THE MORTGAGE
INTEREST RATE DEDUCTION, BUT THEY SAY THEY WON'T TOUCH THAT.
THAT IS HELPFUL TO PEOPLE BUT THAT'S SOMETHING WE DECIDED ON
YEARS AGO.
IF WE WERE GOING TO OVERHAUL OUR TAX PLAN, OUR TAX
CODE, WE COULD DO IT BUT I GOT NEWS FOR YOU, IF LOGICAL PEOPLE
DECIDE IT THAN THE RICH ARE GOING TO PAY MORE THAN WE MIGHT
DO AWAY WITH THE MORTGAGE DEDUCTION AS PART OF A MASSIVE
OVERHAUL THAT ACTUALLY HELP THE MIDDLE CLASS, BUT WE'VE HAD
GENERATION AFTER GENERATION GET USED TO THAT MORTGAGE DEDUCTION
AND COUNT ON IT SO NOW IT SEEMS LIKE IT'S SOMETHING VITAL WE
WOULD BE TAKING AWAY SO IT'S PROBABLY HERE TO SAY.
IT'S AN INCENTIVE FOR HOMEBUYING AND ALSO FOR PEOPLE
WHO ARE IN THE BUSINESSES THAT THEY ARE TRYING TO PROTECT AS
WELL, THAT'S AN IMPORTANT THING.
A COUPLE POLITICAL THINGS TO
REMEMBER, NONE OF THIS CAN HAPPEN UNTIL THERE IS A BUDGET
PASSED AND UNTIL SOME OF THE MOST EXTREME RIGHT-WING
CONSERVATIVE MEMBERS OF THE HOUSE HERE WHAT IS IN THIS THEY
ARE GOING TO VOTE ON IT, AND THEY WON'T APPROVE A BUDGET
UNTIL THEY KNOW WHAT IS IN THIS BECAUSE THEY WANT THIS TO BE
EVEN MORE HARSH THAN IT IS ON PAPER NOW.
THEY WANT THE GOVERNMENT TO RUN OUT OF MONEY, THEY WANT US
TO NOT HAVE A BUDGET, THAT'S THEIR DESIRE, IS TO HAVE THE
GOVERNMENT BE SO SHORT OF CASH THAT WHAT THE GOVERNMENT -- THAT
EVENTUALLY THEY HAVE TO PRIVATIZE ALL THE SERVICES THE
GOVERNMENT PROVIDES, BECAUSE THAT IS THE COUNTRY THEY WANT TO
LIVE IN.
TO SOME EXTENT I ADMIRE THE FEW WHO ARE HONEST ABOUT
THAT.
AND THERE ARE A NUMBER OF THEM WHO ARE THAT FRANK ABOUT IT.
I
TOTALLY DISAGREE, I THINK IT'S HEARTLESS AND FOOLISH AND
UN-AMERICAN, AND CERTAINLY NOT CHRISTIAN, WHICH I AM NOT BUT
THEY CLAIM TO BE --
AND WOULDN'T WORK.
THAT THE OTHER PART, IT WOULDN'T WORK.
AND THE OTHER
POLITICAL STORY IS THAT THE PERSON WHO IS HAPPIEST ABOUT
THIS IS MITCH MCCONNELL BECAUSE IT'S NOW OVER IN THE HOUSE AND
HE CAN STEP AWAY FROM WHAT HAS BEEN A HORRIBLE RUN FOR HIM, AND
NO BEGINS WHAT I IMAGINE WILL BE A BAD RUN FOR PAUL RYAN.
IT WILL BE INTERESTING TO SEE PHOTOS OF A HAPPY, JOYFUL MITCH
MCCONNELL FINALLY.
YOU WILL LOOK LIKE THIS, AS OPPOSED TO THIS.