IT, DOUG WEAD, WELL-SAID.
>> THANK YOU, DAVID.
>> NOW TO YOUR TAX RETURNS AND
MY TAX RETURNS.
THE IRS SAYING SO FAR INDIVIDUAL
TAX REFUNDS ONLY SLIGHTLY
SMALLER THAN LAST YEAR, ABOUT
$20 LESS THAN LAST YEAR.
1.6 MILLION FEWER PEOPLE ARE
GETTING REFUNDS.
WILL ANY OF THIS HAVE AFFECT ON
HOW CONSUMERS ARE SPENDING.
TO NATIONAL TAXPAYERS UNION
EXECUTIVE BRANDON ARNOLD.
GUESS, WHAT I'M ONE OF THOSE
FOLKS WHO HAVE TO PAY MONEY.
I'VE BEEN GETTING A REFUND I
BELIEVE FOR EVERY YEAR OVER THE
PAST 30 YEARS AND IT BOTHERS ME
BUT MY ACCOUNTANT SAT DOWN WITH
ME, SAID, LOOK THIS IS WHAT YOU
PAID IN 2017.
THIS IS WHAT YOU PAID IN TAXES
2018.
YOU'RE MAKING OUT BETTER IN 2018
EVEN THOUGH YOU HAVE TO PAY, YOU
HAVE TO PAY MONEY RATHER THAN
GETTING A REFUND.
THAT IS WHERE A LOT OF AMERICANS
ARE FINDING THEMSELVES.
>> THAT IS ABSOLUTELY CORRECT.
THE KEY IS YOUR OVERALL TAX
LIABILITY RELATIVE TO LAST YEAR
NOT WHERE YOUR REFUND STANDS
THIS YEAR, LAST YEAR TO PREVIOUS
YEARS.
AT THE END OF THE DAY THAT IS
RECONCILIATION WHAT YOU WERE
EXPECTED TO OWE AND WHAT YOU
WERE PAYING THROUGHOUT THE
COURSE OF THE YEAR AND WHAT YOU
ACTUALLY OWE TO SIT DOWN DO YOUR
TAXES IN APRIL AS MANY OF US DO.
SURE, THERE ARE MORE PEOPLE NOW
THAT ARE SEEING SMALLER REFUNDS
OR NOT EVEN GETTING A REFUND AT
ALL, BUT IF THEY GO BACK TO THE
COMPARE THE TAX LIABILITY TO THE
2017 TAX LIABILITY, TO THE 2018
TAX LIABILITY, 80, 90% OF THOSE
FOLKS ARE GETTING A TAX
REDUCTION.
THAT IS A POSITIVE THING.
DAVID: I'VE BEEN GETTING MORE
MONEY EVERY WEEK IN MY PAYCHECK,
BUT YOU DO, THERE IS THAT
ILLUSION, WHEN YOU GET A REFUND
IT IS FOUND MONEY.
AND THAT ILLUSION VERY OFTEN
LEADS PEOPLE TO SPEND IT RATHER
THAN SAVE IT.
I DON'T KNOW WHAT THE EXACT
FIGURES ARE, BUT THE BOTTOM LINE
IS, THAT IF FEWER PEOPLE ARE
GETTING REFUNDS WILL IT HAVE,
WILL THE ECONOMY GET LESS OF A
KICK ON CONSUMER SPENDING SIDE?
>> THAT KICK IS VERY OVERRATED.
IF YOU TALK TO MOST ECONOMISTS
THAT IS A FLASH OF IN THE PAN IN
TERMS OF BIG PICTURE IN THE
ECONOMY.
WHAT IS MORE IMPORTANT USING THE
TAX CODE TO INCENTIVIZE WISE
DECISIONS LIKE INVESTMENT AND
SAVINGS.
THAT IS WHAT WE SEE SINCE THE
TAX REFORM BILL TOOK EFFECT
BEGINNING OF LAST YEAR.
WE'VE SEEN MORE INVESTMENT IN
THE UNITED STATES ECONOMY.
THAT IS WHY WE SEE STRONG JOBS
NUMBERS.
STRONG ECONOMIC PERFORMANCE.
IT IS BIG PICTURE HERE, NOT THE
FLASH IN THE PAN MAY OCCUR IF
SOMEBODY GETTING 5000,
1,000-DOLLAR REFUND CHECK POSE
OFF TO AMAZON TARGET SPEND THE
MONEY.
THAT IS GOOD BUT NOT WHAT WE'RE
LOOKING FOR TAX REFORM.
DAVID: THE BIG PICTURE IS
CORPORATE TAX CUT.
IT DID STEM THE TIDE OF THOSE
COMPANIES THAT WENT OVER TO
IRELAND AND OTHER PLACES WITH
SMALL CORPORATE TAXES.
COMPANIES BEGAN TO COME BACK.
THAT IS ONE OF THE MAIN REASONS
WHY WE HAVE THE EXTRAORDINARY
JOBS NUMBER WE DO, NOT JUST
REFLECTED IN OVERALL
UNEMPLOYMENT RATE, 3.8%, VERY
LOW.
IN TERMS OF HAVING MORE JOBS
THAN YOU HAVE PEOPLE LOOKING FOR
JOBS.
THAT IS EXTRAORDINARY.
THAT IS DIRECTLY BECAUSE OF THE
TAX CUTS, NO?
>> YEAH, THAT IS ABSOLUTELY
CORRECT.
IN TERMS OF GROWTH, IN TERMS OF
THE JOB NUMBERS THAT WE'VE SEEN,
WITH NEARLY 200,000 JOBS CREATED
LAST MONTH ALONE, A LOT IS
ATTRIBUTABLE TO CORPORATE TAX
RATE REDUCTION, INCENT FIZ
AMERICAN COMPANIES TO DO
BUSINESS HERE IN THE UNITED
STATES, RATHER THAN MOVING
HEADQUARTERS OR OPERATIONS
OVERSEAS.
DAVID: RIGHT.
>> THE INDIVIDUAL CUTS VERY,
VERY IMPORTANT.
THOSE ARE MORE ORIENTED TOWARDS
GROWTH, I'M SORRY TOWARDS
FAIRNESS AND TREATS PEOPLE IN
MORE EQUITABLE FASHION THAT HAS
LESS ONEROUS TAX CODE ASSOCIATED
WITH IT.
DAVID: BRANDON, I KNOW YOU'RE A
NUMBERS GUY BUT I WILL ASK YOU A
POLITICAL QUESTION.
A LOT OF PEOPLE SAID THIS
ADMINISTRATION HAS NOT DONE
ENOUGH CONNECTING THE DOTS
BETWEEN THE EXTRAORDINARY JOB
SITUATION AND THE WAGES GOING UP
FINALLY IN A REAL SENSE THAT
PEOPLE CAN FEEL.
IN THE TAX CUTS DO YOU THINK
THERE IS ANY WAY THEY CAN DO
BETTER ON THAT SCORE?
>> THERE IS ALWAYS WAYS TO DO
BETTER, ABSOLUTELY.
THERE HAS BEEN SO MANY POLITICAL
DISTRACTIONS THAT HAVE NOTHING
TO DO WITH TAX POLICY.
THAT IS HARD TO FOCUS ON THOSE.
DAVID: THAT'S TRUE.
>> WHAT PEOPLE CARE ABOUT MOST
ON THE DAY-TO-DAY BASIS, HAVING
SAFE COMMUNITIES TO RAISE THEIR
FAMILIES IN, HAVING ENOUGH MONEY
IN THEIR POCKETS TO SPEND MONEY
ON THINGS THEY WANT.
THERE IS NEXUS TO DAY-TO-DAY
ACTIVITIES OF AMERICANS KIND OF
SEPARATE FROM ALL OF THE
POLITICAL DISTRACTIONS, HOWEVER
YOU WANT TO DESCRIBE WHAT IS
HAPPENING IN WASHINGTON THESE
DAYS.
THAT IS WHAT POLITICIANS,
INCLUDING PRESIDENT TRUMP NEED
TO FOCUS ON.
DAVID: I WOULD DESCRIBE THE
DISTRACTIONS IN WASHINGTON BUT I