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tv   Forbes on Fox  FOX Business  November 27, 2016 7:00am-7:31am EST

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the economy. at economy gets stronger it's going to do well. it has good numbers. >> i guess you guys expect it to pick up. we continue. you ar are watching the place f business. simplifying the nearly 75,000 pages of the federal tax code, could it happen. republican lawmakers said to be hoping to do it with soon to be president donald trump, but will washington lobbyists mess it up? let's go in focus to find out with elizabeth mcdonald, steve forbes and former economic adviser to president obama austin. steve, these lobbyists have spent decades getting their special deals. they're not going to give up easily. >> no, they're not. that's why trump has to move hard and fast not with a bill
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that does trimming here and there. he has to go big. back in 1986 they took out a lot of tax shelters realizing if you touch one you have to take them all out so they have to think big and recognize you need a working more profitable and investing more profitable and remove the barriers, the economy improves. trump knows that if the economy doesn't improve, nothing else is going to matter so go for the big tax cut and appeal to the american people the way ronald reagan appealed to the american people. that's the only way you can get it done. >> as if we needed a reminder, just talking about the co-s st the economy, 74,000 pages, it takes 6.1 billion hours a year to fill out all the forms involved at a total cost of $234 billion. huge cost to this tax system.
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can it be simplified? >> it can be and as you know i've been a long time proponent of big simplification. the problem is twofold. the first is what ronald reagan did in 1986 they paid for it and they actually sat down and tried to get the loop hopholes and th out of the tax code. so far donald trump is proposing more loopholes and second they're not going to be able to pay for it. they're going to judst end up making it a giant tax cut that will blow up the deficit more. i'm not optimistic. >> no, i gathered that. for all the talk about simplification and frankly it seems to go in one ear and out the other in washington, look at how it's gone up. we go from 400 pages in 1913 even through the reagan years the tax code increased to 75,000
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pages. >> yeah. steve is right. trump has to go big and people shouldering the burden more than anybody else. >> johnny you're down in washington right now. all those lobbyists have been spending decades in that capital building trying to cut their special deals and they're going to do everything they can to stop this from happening. >> yeah, tax simplification would be great but it's not
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going to happen. politicianss giving up not only all their power in office but once they leave office. i would love to see it happen. it won't. >> the good thing this is one thing that paul ryan and donald trump seem to agree on and paul ryan has been putting together the plans for lowering rates for a long time. the top tax rates would go down and be slashed. the corporate tax rates from 35% to 15%. individual tax rates would be cut and estate tax would go down to zero. >> the plans are in there too. i'm with steve and rich do it big, bold and fast. that's what kennedy did. drain it of lobbyists because the tax code is the 21st century
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pork barrel. he said it is demoralizing to the american people. keep money in your pockets so you can grow business and jobs and the economy. by the mid '60s the unemployment rate was cut in half and the economy was booming and revenues came pouring in. >> margaret thatcher said the main reason she was for tax simplification is the tax code was making the rule of law fall apart in england before she got a tax simplification thing through because people -- you'd go by one tax rule and that would contradict another tax rule. it effected the whole rule of law. >> yeah. it makes criminals out of otherwise good citizens. i think that donald trump and the republican congress need to sale this through the lens of fairness, an equal opportunity for all. when government is taking our money when you are a small business, you may not have the
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same opportunity as others around you. this is going to be a very steep uphill climb. i just received an e-mail this past week from a lobbying association criticizing paul ryan for saying draining the swamp. they said these ear marks allow us to have federalism at its best. i'm thinking that is a very interesting frame. >> so steve they've already started and of course there's an irony here that we can't overlook which is that the president-elect, the guy who says he's going to drain the swamp has taken advantage of every single tax loophole that he could saying it proves he's smart. is he the right guy to do it? >> sure. he can say this code is corrupt and he's experienced it firsthand and this is some of the things we have to do to cure the thing. he's got to sharpen that messenger theme and he's going to have to do more than one address with the american
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people. when you put a burden on risk taking, productive work and success you'll get less of them. every time we reduce the burden the economy prospers. if washington has a problem with it washington should remember it's working for us, not the other way around. >> i'm sure you love that irony, you have the major guy taking advantage of these deals saying he's going to simplify the thing. >> arsonists don't make great fire chiefs and donald trump is not going to be ronald reagan. what he's doing is george w. bush 2001 and it failed then and it's going to fail now. >> on the other hand, joseph p. kennedy who was known as advantage of all kinds of things in the stock market. he came down and really regulated that market. >> yeah. i think an arsonist or a crook is a pretty good one to hire. if i want to solve my security computer security problems, i'll hire a hacker provided they've gone to the right side.
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i think trump has to bring into his tax cutting coalition these nine red state senators who are up for reelection in 2018 and flip some to republicans or get them to broader co growth coalition. >> is it conceivable that trump could get a coalition of a few democrats with a republican majority. >> i think the market reaction to his election says it's conceivable. i don't think anyone expected he would have control of the house and senate so it's possible to get a good tax cut here. whether it's simplification, i think we're dreaming. lobbyists are the effect of a tax code and the government that's grown too large. >> just the fact that we're going have three individual tax rates as opposed to the many we have now, that's simplification. >> it is simplification. listen, this is exactly what the u.s. economy needs. i hear what john is saying that the tax code has been basically simplified beyond all understanding, but there is a
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way forward. listen, the last eight years have been so demoralizing why not bring optimism into the u.s. economy and help everybody's wallets. >> donald, the deal maker. president-elect donald trump planning to
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days of mourning. back to you. iran warning of retaliation if the u.s. breaches the nuclear deal as president-elect donald trump vows to unwind the deal. president obama plans to make it more difficult to scrap the deal. we have this letter came out from paul ryan essentially demanding that the president request that the administration take no further actions to bolster the international investment in iran, but at the same time the president is trying to get more businesses involved in iran so it will make
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it more difficult for donald trump to tear up the deal. what do you think? >> i don't think any businesses are going to do anything between now and january. there's way too much uncertainty. there's an administration going out and a new one coming in. it would be crazy for businesses to change course right now. i think there's a lot of -- there are a lot of people both republicans and democrats urging the president-elect trump to be cautious in his actions in iran and i think that's something the country is going to stand behind. >> the country is getting fed up with the way iran has been dealing with this. we had this announcement from the iranian supreme leader saying the current u.s. government has breached the nuclear deal on many occasions. for them to tell us that we're breaching the deal is ridiculous after they've done it a number of times. >> look, i'm not will biggest fan of the iranian regime. i know that if you look at several of the most outspoken
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critics of the deal when it was signed, the israeli security establishment, saudi arabia, some of the leading republicans, a lot of those groups are telling donald trump don't just rip up the deal. please go slowly and be more judicious about it. don't keep threatening to throw it out because there are aspects of it that are working. >> the iranian bereligion residence towards us is making donald trump want to tear it up. >> it was never put to the senate as a treaty. we had to get two-thirds vote to stop it and that's unconstitutional. the iranians have been violating the agreement. they said they would put back their missile program. they're going full board with that. the next time they touch one of our sailors or ships we should go full in.
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in terms of thinks is as they want access to our market and the international banking system, we have a lot of leverage, time to start using. >> the house of representatives already has reorthopedauthorize sanctions act. will the next president sign it. >> i look at these deals with countries and they strike me as full employment acts for foreign policy types. if iran is such a bad regime why would we expect them to abide by any kind of deal. we enter these deals and give legitimacy to bad people and achieve nothing in terms of safety. don't rip up a deal and doesn't enter into them in the first place. >> we have a deal and the americans are fed up with it and the iranians. i think everybody is fed up with the iranians, but when they really humiliated the u.s. navy
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sailors that was sort of the final straw. this humiliation that we saw of our sailors comes in contrast to our rescue of iranian sailors the other day. >> they were stranded and our guys went and rescued them. where were those iranian ships harassing our boats to save their own men. we gave them a case of water and new battery for that boat. this is an unconstitutional deal with the . the obama administration did a run around congress. i hear what john is saying, however this is a really bad regime with nuclear tipped missiles possibly on the way. i think donald trump needs to come in and really -- he will take a look at this and hopefully step in. >> rich, the attitude of the iranians, i think it's very simple. it's like you treat a bully, you give a bully what he wants and
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he'll ask more more and more. the obama administration has ri. we have a lot of leverage here, bu back channels and you back it up with action. >> okay. that's it for this segment. eric what have you got? >> president-elect donald trump outlining plans to help make the job market great again. will it be a huge success or it will be a miss. more celebrities bashing trump and his family. are they going too far? we'll see you at 1130. some lawmakers warning
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trump's agenda will expand our nation's debt. the forbes gang gives the president elect specific a
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president-elect trump and the republicans will have control of the congress and the white house. they should use this to shrink the budget and they know where to do. steve, you start with some low hanging fruit. >> you can dismantle the housing apartment, hud, you could do
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that in six months. that would be a huge savings. the weather service and commerce department, privatize that. how about these labs in the energy department, privatize those. procurement in the defense department needs updating. >> we're talking tens of billions of dollars. >> also i love how washington is always telling wall street about mergers and companies about mergers. how about they merge their multitude training programs, multitude of economic development programs, they could collapse those and stop government union workers from home on union things. >> what have you go the? >> i would start by not engaging in a $1 trillion infrastructure spending plan. we should reign entitlements. there's a lot of support among women for that issue. we should repeal and replace
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the first three priorities are growth, growth and growth. i would like for areas to cut are parts of the federal government that are impediments to growth so you get two for one. >> okay. >> john, go ahead. >> if it's about growth, government has no resource other than what it's taken from us first. government spending is the tax so greatly reduce spending across the board and look at what's unconstitutional and slash it and you will get growth. >> look, discretionary is the lowest level in a half century. what you should do if you care about debt is cancel your $5 trillion unpaid for tax cut. >> the point is those tax cut rates might actually bringing in more revenue if there's more growth. >> grow the economy and increase the assets of the economy.
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that's what happened in the 1980s. you $1.7 trillion increase in the national debt, but a $17 trillion increase in the net wealth in the nation. growth works. tax cut rates work. >> i love austin, but the government can decide to reign in the deficit spending. that's how you pay for the tax cuts. you reduce the size of government spending. >> austin, last word. >> discretionary spending, lowest level in a half century so start with not cutting taxes by trillions for very rich people. >> thank you very much. am cooi coming up, cyber monday sales are expected to be bigger than ever and that could help pay for your holiday when heartburn hits, fight back fast with tums smoothies. it starts dissolving the instant it touches your tongue.
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we'll see you on monday. we're back to help you pay for your holiday gifts. you have a fund. >> yeah, the vanguard 500. >> you have a specific company. why do you like it? >> it's a growth stock. he's had a runup but i like it because every gadget out there is going more and more mobile. video technology and so forth and they make the chips that power that. >> nobody knows those gadgets like rich does. >> the customer list is blue chip. they have google and apple in there. i think it's a good company.
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>> it's a good time to get into stocks more. >> when the fed does raise rates in december, the market could go down. that's when you want to get in. >> have a wonderful holiday weekend. keep it right here. my agenda will be based on a simple core principal. putting america first. whether it's producing steel or buildings cars or reducing disease, i want the next innovation to happen right here on our great homeland, america. creating wealth and jobs for american workers. i'm going to issue a notification of intent to withdraw from the transpacific partnership and cancel job killing restrictions on american energy including shale energy and clean


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