HE HATED IT, IT HAD TO GO, AND
THAT IT WAS GONE AND THEN HE AND
REPUBLICANS WENT RADIO SILENT ON
CARRIED INTEREST.
THAT SO-CALLED LOOPHOLE WHICH IS
PEOPLE CALL IT WELFARE FOR THE
WEALTHY FOR BILLIONAIRES AND A
20% TAX BRACKET THAT THEY GET TO
PAY.
AS YOU KNOW, WE'VE BEEN TRYING
TO UNTANGLE THE COMPLEX WEB OF
HOW THE PRIVATE EQUITY INDUSTRY
MANAGED O KEEP THAT LOW RATE FOR
THEMSELVES IN THE REPUBLICAN TAX
BILL AND GUESS WHAT?
WE STARTED TO UNTANGLE IT
YESTERDAY.
IT'S NOW GETTING MORE TANGLED
CHARLIE GASPARINO, WHAT IS UP?
>> MORE BIZARRE.
I WANT TO SAY OUR STORY
YESTERDAY STARTED A FIRESTORM ON
CAPITOL HILL.
WE WERE RETWEETED, WE WERE RE
TWEETED LIKE A THOUSAND TIMES.
IT BASICALLY BOILED DOWN THIS
TAX BILL INTO SOMETHING PRETTY
UNDERSTANDABLE FOR AVERAGE
AMERICANS.
YOU AVERAGE AMERICAN, YOU'RE
GOING TO GET MAYBE $20 IN YOUR
PAYCHECK FOR THIS.
LIZ: OR 30 OR 35 PER WEEK.
DEPENDS ON WHERE YOU ARE ON THAT
PAY SCALE.
IF YOU'RE IN A HIGH TAX STATE,
YOU ARE REALLY GOING TO GET
SCREWED IF YOU'RE LIKE IN NEW
YORK, NEW JERSEY, AND YOU'RE
MIDDLE CLASS OR CALIFORNIA
YOU'RE GOING TO GET HAMMERED
BECAUSE OF THE STATE AND LOCAL
LIST.
PEOPLE THINK IT'S ALL NEW YORK
AND CALIFORNIA NO.
YOU LOOK AT THE TABLES YOU'LL
GETTING SCREWED THERE.
AND SO PEOPLE ARE TRYING TO
FIGURE OUT HOW DID THIS THING
HAPPEN WHEN TRUMP HATED THE FACT
THAT YES, IN THE WHOLE SCHEME OF
THINGS WE NEED TO GET RID OF
LOOPHOLES BUT WE'LL GIVE A
OF FAT CATS SHOWERED CERTAIN
CONGRESSMEN WITH TENS OF
VOTE.
THOSE CONGRESSMEN ARE PEOPLE
LIKE PAUL RYAN, VERY POWERFUL,
HOUSE SPEAKER AND KEVIN BRADY
THE HOUSE WAYS AND MEANS
COMMITTEE, ORRIN HATCH SENATE
FINANCE COMMITTEE, MITCH
MCCONNELL THE GRAND MASTER OF
THIS TAX PLAN THE SENATE
MAJORITY LEADER ALSO STEVE
SCHWARTZMAN, HEAD OF PLAQUESTONE
IS A BIG ADVISOR FOR
DONALD TRUMP.
ON TOP OF THAT, NOW WE'RE
GETTING SOME WORD I DON'T KNOW
IF I BELIEVE THIS THAT STEVE
BANNON MAY HAVE PLAYED A ROLE IN
OUT THE FAT CATS?
REMEMBER HE'S THE POPULOUS GUY,
THE REBEL?
LIZ: CAN'T FORGET.
>> I ACTUALLY LIKE STEVE BANNON
A LOT HE'S PERSONALLY A DECENT
GUY AND VERY SMART MAN BUT WHY
WOULD HE WANT TO DO THIS?
WELL WHAT HIS ASSOCIATES ARE
SAYING, POINTING OUT THE WHITE
HOUSE IS SAYING HE PLAYED NO
ROLE BUT WHAT HIS ASSOCIATES ARE
SAYING IS THAT HE ESSENTIALLY
WROTE THE LANGUAGE, THE CARRIED
INTEREST LANGUAGE THAT'S IN THE
CURRENT BILL THAT SAYS YOU CAN
KEEP IT IF YOU KEEP IT, YOU CAN
USE IT IF YOU HOLD YOUR
INVESTMENT FOR THREE YEARS.
THAT'S HIS "COMPROMISE" TO MAKE
SURE CARRIED INTEREST WAS ONLY
ALLOWED TO BE USED FOR PRIVATE
EQUITY FIRMS AND NOT HEDGE FUNDS
WE OBVIOUSLY CAME BACK AND TOLD
MR. BANNON'S ASSOCIATES THAT
HEDGE FUNDS DON'T REALLY USE
CARRIED INTEREST ANYWAY SO IT'S
SORT OF NOTHING HERE BUT THIS IS
WHAT'S GOING ON NOW.
PEOPLE ARE TRYING TO UNTANGLE IT
, THE BANNON PEOPLE I THINK,
LISTEN STEVE SCALISE A GREAT GUY
I KNOW HIM PERSONALLY.
HE GOT HURT WHEN ROY MOORE LOST
IN ALABAMA.
REMEMBER HOW MUCH HE PUSHED FOR
ROY MOORE?
HIM BASICALLY RELEVANT TO A
CERTAIN EXTENT.
THERE'S A STORY OUT IN VANITY FA
RE HE MIGHT RUN FOR PRESIDENT
IN 2020.
I HAVEN'T HEARD THAT ONE, BUT
YOU KNOW?
IT WASN'T THE ONION IT WAS
VANITY FARE.
LIZ: DON'T TELL PETER KING THAT
OF NEW YORK.
IF IT LOOKS THAT WAY?
DOESN'T MATTER.
HE COULD HAVE BEEN THE POPULOUS
HERO HAD HE REALLY PUSHED TO
ELIMINATE CARRIED INTEREST AND
IF THE WORD IS HE TRIED AND
NOBODY WOULD LISTEN AT THE WHITE
HOUSE, HE LOOKS BETTER.
>> HE SAID THAT WHAT THEY'RE
SAYING IS HE TRIED WITH CONGRESS
AND THEY WOULDN'T LISTEN SO HE
CAME UP WITH THIS SORT OF
COMPROMISE WHICH WHEN YOU UN
TANGLE IT, IT'S NOT REALLY A
COMPROMISE.
DOESN'T CHANGE IT THAT MUCH.
YOU KNOW WHAT I'M SAYING THE
BOTTOM LINE IS IF YOU'RE A
PRIVATE EQUITY FIRM YOU BUY A
COMPANY, YOU BRING IT PRIVATE,
TIMES GET RID OF THEIR HEALTH
INSURANCE WHATEVER THEN YOU SELL
IT LATER ON, RIGHT?
YOU USUALLY TAKE THREE YEARS TO
DO ALL OF THAT.
THAT'S THREE TO FIVE YEARS.
THAT'S WHAT HAPPENS.
THIS BILL SAYS YOU COULD STILL
GET CARRIED INTEREST.
LIZ: AND PEOPLE WHO BUY HOMES
AND FIX THEM UP AND SPLIT THEM
THREE YEARS LATER SHOULD BE AT
20% BUT CHARLIE, I'M NOT SURE
PEOPLE CARE.
TRUMP SUPPORTERS ARE THINKING
WE'LL GET MORE IN OUR PAYCHECKS
AND THEY DON'T CARE BUT IF YOU
INSERTED PRESIDENT OBAMA OR SOME
DEMOCRAT FOR DONALD TRUMP THAT
SAID DO YOU KNOW WHAT?
PRESIDENT OBAMA LET CARRIED
INTEREST LIVE PEOPLE WOULD FLIP
OUT.
>> PRESIDENT OBAMA GAVE STEVE
SCHWARTZMAN A 20% TAX BRACKET
WHILE YOU AVERAGE AMERICAN IS
YOU'RE GOING TO GET LIKE $10 IN
>> THEY WOULD FLIP OUT.
HIM THEY ARE TWEETING US AND
SAYING WOULD YOU LET IT GO?
>> HERE IS THE THING.
WE'RE GOING TO CALL THIS FAIRLY,
YOU DON'T LIKE WHAT WE SAY,
THAT'S YOUR BUSINESS.
WE'RE GOING TO NOT BACK OFF OF
THIS THING.
OUR JOB TO HOLD BOTH PARTIES
ACCOUNTABLE.
LIZ: ABSOLUTELY.
I DIDN'T HEAR DEMOCRATS
SCREAMING ABOUT IT.