MELISSA.
MELISSA: I’M SURE IT WAS
IMPORTANT.
HERE TO REACT STEVE MOORE,
FREEDOMWORKS ECONOMIST.
I GUESS WE WEREN’T REALLY THAT
HOPEFUL ABOUT A PAYROLL TAX CUT.
IT MADE A LOT OF SENSE BUT IN MY
MINE POLITICIANS IN WASHINGTON
NEVER GET TOGETHER TO VOTE FOR
THAT, BECAUSE IT MEANS LESS
MONEY FOR THEM TO DOLE OUT TO
THEIR FAVORITE PEOPLE.
I SAY THAT ABOUT BOTH
REPUBLICANS AND DEMOCRATS.
>> WELL, FIRST OF ALL LET ME
SAY, MELISSA, AS YOU KNOW, I’VE
BEEN LEADING THE CHARGE FOR THIS
ALONG WITH ART LAFFER AND STEVE
FORBES AND OTHERS.
THIS AIN’T DONE YET.
THIS IS NOT DONE YET.
WE’RE NOT THROWING IN THE TOWEL.
WE THINK ANY PACKAGE HAS TO
INCLUDE A PAYROLL TAX CUT.
IF IT DOESN’T, I THINK YOU’RE
GOING TO HAVE MANY, MANY
REPUBLICANS VOTING NO ON IT.
THAT IS THE LAST THING
DONALD TRUMP WANTS.
WE WANT UNITY.
THERE HAS TO BE A PAYROLL TAX
CUT IN THIS BILL OR YOU WILL
LOSE A LOT OF SUPPORT.
I JUST THINK IT IS WRONG TO SAY
THIS IS DONE.
THEY’RE STILL AT VERY STARTING
NEGOTIATING, YOU KNOW, THEY
HAVEN’T EVEN STARTED NEGOTIATING
WITH THE DEMOCRATS YET.
IT IS VERY DANGEROUS FOR
REPUBLICANS TO MOVE FORWARD WITH
A PLAN -- PUT IT VERY SIMPLE.
WITHOUT A PAYROLL TAX CUT IN THE
PLAN, WHAT IS THERE TO STIMULATE
GROWTH?
I HOPE NOBODY THINKS DUMPING
MONEY OUT OF HELICOPTER WINDOWS
IS SOMEHOW A STIMULUS TO THE
ECONOMY.
IF THAT WERE THE CASE WE SHOULD
DUMP 10,000 OUT.
MELISSA: BUT, STEVE, LOOK AT THE
OPTICS HERE.
STEVE MNUCHIN DOES NOT SEEM TO
BE ON THE PAYROLL TAX CUT SIDE
AT ALL.
HE IS GOING OVER TO CAPITOL HILL
BY HIMSELF.
LARRY KUDLOW IS NOT IN SIGHT.
YOU HEARD CHARLIE GASPARINO
REPORTING ON THE CIVIL WAR
WITHIN THE ECONOMISTS, AMONG
ECONOMISTS WHICH I IMAGINE IT IS
LIKE FENCING.
IT SOUNDS VERY REFINED BUT
STILL.
IT JUST, I WHO IS ARGUING ON
SIDE OF PAYROLL CUTS RIGHT NOW
IF STEVE MNUCHIN IS THE GUY
LEADING THE CHARGE?
>> WELL, THAT IS A GOOD QUESTION
AND I’LL TELL YOU THIS, MELISSA,
THERE IS ONE PERSON IN
WASHINGTON WHO MAY BE THE
BIGGEST FAN OF THE PAYROLL TAX
CUT AND YOU KNOW WHO THAT IS,
DONALD J. TRUMP.
I DON’T SEE HIM GIVING UP ON
THIS I REALLY DON’T.
I MAY BE WRONG.
AS THEY MOVE FORWARD WITH THE
NEGOTIATIONS, START TO REALIZE,
WAIT A MINUTE THIS IS SUPPOSED
TO BE ABOUT HELPING THE ECONOMY.
GIVING OUT MONEY TO STAYS AND
CITIES, DOESN’T HELP THE
ECONOMY, HELPS GOVERNMENT.
PASSING MONEY OUT IN FORMS OF
CHECKS TO PEOPLE IS NOT
INCENTIVE TO GET PEOPLE BACK TO
WORK.
UNEMPLOYMENT INSURANCE IS PAYING
PEOPLE NOT TO WORK.
SO YOU HAVE TO HAVE SOMETHING IN
THIS PACKAGE, MELISSA, IN MY
OPINION, IF YOU’RE GOING TO GET
A MAJORITY OF REPUBLICAN VOTES,
THAT IS ACTUALLY PRO-GROWTH, A
TAX CUT THIS IS ONLY ONE THAT IS
IN SIGHT.
MELISSA: YEAH.
I TOTALLY AGREE WITH YOU ON,
LIKE THE ACADEMIC FUNDAMENTALS
OF IT, A PAYROLL TAX CUT MAKES
THE MOST SENSE.
YOU INCENT PEOPLE TO WORK.
YOU TAKE MINIMUM WAGE WORKERS,
POOREST AMONG US AND INSTANTLY
GIVE THEM A PAY INCREASE BUT
DEMOCRATS GO OUT THERE AND
HAMMER AGAIN AND AGAIN THAT A
PAYROLL TAX CUT, YOU HEAR THE
WORD PAYROLL, YOU KNOW HOW THEY
SELL IT, IT IS A TAX CUT FOR
COMPANIES AND FOR THE RICH.
THERE IS NOBODY OUT THERE
COUNTERING THAT MESSAGE IN THE
MAINSTREAM MEDIA.
THIS IS WHY THE PAYROLL TAX CUT
HAS SUCH A HARD TIME, EVEN
THOUGH I COMPLETELY AGREE WITH
YOU, HAVE BEING STUDIED
ECONOMICS YOU’RE 100% RIGHT WE
NEED IT FOR STIMULATION BUT NO
ONE IS ARGUING IT PROPERLY.
>> LET ME, YOU MAKE GREAT
POINTS.
HERE IS HOW I SEE THIS
PROCEEDING.
YOU HAVE, LOOK, IF I HAVE MY
DRUTHERS I WOULD SUSPEND IT FOR
EVERY COMPANY AND EVERY WORKER
IN AMERICA REST OF THE YEAR.
THAT IS CLEARLY NOT GOING TO
HAPPEN.
WHAT COULD HAPPEN THIS, WOULD BE
SOMETHING VERY DIFFICULT FOR
DEMOCRATS TO OPPOSE, YOU SAY ANY
EMPLOYER WITH LESS THAN 100
EMPLOYEES, OKAY?
LESS THAN 100 EMPLOYEES, SMALL
BUSINESS, YOU GET THE TAX CUT.
ANY WORKER WITH INCOME, THROW
OUT A NUMBER, 80,000 NUMBER.
FOR LOWER, MIDDLE INCOME PEOPLE.
HERE IS WHY NANCY PELOSI WILL
HAVE VERY HARD TIME OPPOSING
THAT, BECAUSE 10 YEARS AGO WHEN
BARACK OBAMA PASSED A PAYROLL
TAX CUT NANCY PELOSI CELEBRATED
THIS AS THE GREATEST VICTORY FOR
WORKERS.
SO THE QUESTION, WE NEED TO ASK
NANCY PELOSI IS, WHY WAS A OBAMA
PAYROLL TAX CUT GOOD FOR WORKERS
BUT A TRUMP TAX CUT, PAYROLL TAX
CUT BAD FOR WORKERS.
I CAN’T WAIT TO HEAR HER ANSWER
THAT QUESTION.
MELISSA: IS STEVE MNUCHIN TRYING
TO SELL PAYROLL TAX CUT HOW HIGH
THE INCOME IS AND HOW MANY
EMPLOYEES YOU HAVE?
THAT IS A GREAT SALES PITCH.
IS HE ACTUALLY SAYING THAT TO
PEOPLE WALKING IN THE ROOM?
>> I DON’T THINK STEVE MNUCHIN
IS A GREAT FAN OF THIS AND THE
REASON HE’S NOT, HE SAID IT IN
THAT CLIP THAT YOU JUST PLAYED,
MELISSA, IT TAKES TIME, YOU KNOW
TO GET THE MONEY INTO THE HANDS
OF PEOPLE, WHERE IF YOU GIVE
THEM $1200 THEY HAVE GOT THE
CASH RIGHT NOW BUT WHAT HE IS
MISSING THIS IS NOW INCENTIVE.
EVERY EXTRA HOUR WORKS, GOES
BACK ON THE JOB THEY HAVE EXTRA
INCENTIVE.
EVERY WORKER WILL LOOK AT THEIR
PAYCHECK NOW, SEE 7% PAY RAISE.
THE POLITICS OF IS GOOD.
THE POLICY IS GOOD.
I’M HERE TO TELL I THINK WE CAN
TURN THIS AROUND.
DON’T WRITE OFF THE PAYROLL TAX
CUT.
THERE IS A LONG WAY TO GO WITH
NEGOTIATIONS.
MELISSA: HE IS IN TREASURY.
I WOULD THINK HE KNOWS WHAT
PAYCHECKS LOOK LIKE.
THAT IF YOU WITHHOLD LESS THERE
IS MORE IN THE END.
I DON’T KNOW, THERE IS SOME
DISCONNECT HERE.
I LOVE THE IDEA, STEVE.
WE’RE GOING TO SHARE IT WITH
CHARLIE GASPARINO AS HE IS
REPORTING ON THIS IN THE LAST
HOUR.
I HOPE HE IS WATCHING.
I LOVE THE PAYROLL TAX CUT.
YES, GO AHEAD.
>> ONE OTHER QUICK THING.
ONE VERY POSITIVE THING IN THIS
BILL IS THAT THEY DO PUT A LIMIT
ON THE UNEMPLOYMENT INSURANCE
BENEFITS.
YOU AND I TALKED ABOUT THIS LAST
WEEK.
WE HAVE TO DO THAT OR WE’RE NOT
GETTING WORKERS -- MANY STATES
WHERE WORKERS ARE GETTING TWICE
AS MUCH MONEY IN UNEMPLOYMENT
BENEFIT THAN THEY GET GOING BACK
ON THE JOB.
WE CAN’T HAVE THAT.
WE WON’T HAVE JOB RECOVERY.