YOU CAN PREPAY.
JON?
>> GERRI WILLIS, FOX BUSINESS
NETWORK.
>> THANK YOU.
>> ART LAFFER WAS AN ECONOMIC
ADVISER FOR PRESIDENT REAGAN.
ANY TIME THE GOVERNMENT GETS
INTO PICKING LOSERS AND WINNERS,
YOU GET INTO THINGS LIKE, THIS
ART, PEOPLE IN THE HIGH TAX
STATES NOW RUSHING TO GET THEIR
TAXES PREPAID, STATE AND LOCAL
TAXES, BECAUSE THEY WON'T BE
DEDUCTIBLE TO THE SAME EXTENT.
>> YOU CAN'T MAKE THIS STUFF UP,
CAN YOU?
IT'S AMAZING.
>> AND THE IRS IS NOT BEING
THEY'RE SAYING IT'S NOT
DEDUCTIBLE.
IS WHAT THEY'RE SAYING.
WHAT CAN I SAY?
IT'S A FIGHT TO THE END.
>> NEW YORK'S GOVERNOR IS TRYING
TO MAKE IT POSSIBLE FOR PEOPLE
PARTLY OPENS UP -- BRINGS MONEY
INTO THE STATE COFFERS BUT
PARTLY ALSO A SNUB AT PRESIDENT
TRUMP.
>> THIS JUST GOES TO SHOW YOU --
BY THE WAY, STATE AND LOCAL
TAXES SHOULD NOT BE DEDUCTED AT
A FEDERAL LEVEL.
THEY SHOULD BE PAYABLE THERE
AND -- SO THIS TYPE OF NONSENSE
DOESN'T MAKE ANY SENSE
WHATSOEVER FOR THE GOOD
GOVERNMENT.
IT'S JUST A TAX LOOP HOLE THAT
YOU'RE TRYING TO GET AROUND.
UNFORTUNATELY, THEY HAVE SET IT
UP THIS WAY.
THE TAX CODES ARE SO COMPLICATED
THAT THEY'RE ALL SORTS OF THESE
THINGS GOING ON, JON.
>> YEAH, EVEN CPAs IN THE
BUSINESS OF KNOWING THE TAX LAW,
THEY'RE SCRATCHING THEIR HEADS
>> HAVE YOU EVER TALKED TO DON
RUMSFELD ON THIS?
HE WRITES AN IDEA TO THE IRS
EVERY YEAR.
I HAVE NO IDEA IF THIS TAX
RETURN IS CORRECT BUT HERE'S
WHAT I THINK IT MIGHT BE.
IT'S A CLEVER LETTER HE WRITES
EVERY YEAR.
FOR WHAT?
CUTTING THE CORPORATE RATE FROM
35 TO 21?
IF YOU READ THEM, THOSE 1,000
ALL SORTS OF STUFF IN THERE.
>> YOU'RE IN THE BUSINESS OF --
WELL, PREDICTIONS, I GUESS.
YOU KNOW, PEOPLE LIKE TO MAKE
PREDICTIONS.
WHAT DO YOU PREDICT AS A RESULT
OF THIS TAX REFORM ACT?
>> I'LL PUT MY SWAMI HAT ON.
THAN THE FUTURE.
THAT HAVING BEEN SAID, I THINK
THIS TAX BILL WILL HAVE AN
AMAZING EFFECT ON THE U.S.
GROWTH AND I THINK THE GROWTH
WILL BUILD UP THE NEXT COUPLE
YEARS.
THE ONE THAT IS MOST IMPORTANT
HERE IS I REALLY BELIEVE TAX
REVENUES WILL INCREASE AS A
RESULT OF THE CORPORATE TAX RATE
REDUCTION IN THIS BILL, AND I
THINK THIS WILL LEAD TO
PROSPERITY AND BETTER BUDGET.
>> SO YOU DON'T BUY THE IDEA
THAT WE'RE GOING TO BLOW A $1.5
TRILLION HOLE --
>> THAT'S THE SILLIEST THING
I'VE HEARD IN MY LIFE.
THESE GUYS THAT DO THAT, THEY
HAVE NO IDEA HOW ACCOUNTANTS AND
CORPORATE PEOPLE WORK.
WHEN YOU CUT TAX RATES, JON,
THEY STOP SHELTERING AS MUCH
INCOME.
A LOT LESS TAX EVASION.
COMPANIES WILL MOVE BACK TO THE
U.S.
NONE OF THESE HAVE ANYTHING TO
DO WITH ECONOMIC GROWTH, WHICH
THEY'RE GOOD AT.
THIS TYPE OF STUFF, THE BEHAVIOR
RESPONSES, I DON'T GET.
THAT IS ENOUGH TO WAY OFFSET THE
CORPORATE TAX RATE REDUCTION.
RATES.
>> A LOT OF THE POLLS, YOU CAN
DECIDE WHETHER OR NOT YOU
OF THE AMERICAN PEOPLE WERE ON
BOARD WITH THE IDEA OF THIS TAX
CHANGE WHEN PEOPLE START SEEING
THEIR PAYCHECKS?
>> OH, SURE.
WHEN THEY STOP SEEING THE
NEGATIVE PRESS ON IT.
THERE'S NOT BEEN A DEMOCRAT THAT
HASN'T SAID IT'S ARMAGEDDON, THE
END OF THE WORLD.
EVEN THE REPUBLICANS WERE SAYING
OH, THIS IS A BAD PROVISION.
ALL OF THAT STUFF MAKES VOTERS
UPSET.
FRANKLY, SO THEY HAVE A NEGATIVE
VIEW OF THIS.
BUT ONCE THE STORM CLEARS, ONCE
THE DUST SETTLES, I THINK YOU'LL
SEE PEOPLE LIKE THE GROWTH.
THEY'LL LIKE THEIR TAX BILLS
BEING MUCH SMALLER THAN THEY
HAVE BEEN AND THEY'LL LIKE THE
PROSPERITY.
I'M EXCITED ABOUT THIS.
IF YOU LOOK AT IT FROM A
POLITICAL STANDPOINT, I'D RATHER
BE ON THIS SIDE OF THE FENCE