Transcript for NFL players on protesting: 'It's not about the flag'
Oh that's turning out of the Republican agenda in congress president trump insists that quote. Eventually I'm quote Republicans will win when it comes repealing obamacare though right now he says tax reform as his chief priority. I don't know why did daylight but you know what eventually well when weather is now or later eventually we will win on that. My primary focus I must tell you and has been from the beginning as you can imagine is taxes. I believe we will be successful in the largest tax cut. In our country's history. After months of speculation Republican lawmakers are expected to unveiled the framework for their tax reform plan this Wednesday. Joining us right now to weigh in from the White House is assistant secretary of the treasury. The public affairs police say add tonnage it was a pleasure good to see sir thanks so much for joining us. Good morning Maria thanks for having me though let's talk about what we're expecting on Wednesday a house Republicans are gonna take a retreat. They're not they canceling all boats that they could actually talk about what's important. What's important to the White House in terms of tax reform and his package that we're expecting what are gonna learned this week that we don't know already. Look Maria as you know the president's priority has always been to create jobs and grow the economy and that benefits all Americans unfortunately we've had a situation. The last eight years were of that sub optimal growth around 2% you know this well. And what's happened in that time is wealthy people get wealthier and the rest of the country does not advance and that's created this idea. Up because we haven't had tax reform for thirty years that the system is rigged against the average hardworking. American family and that's what we're focused on making sure we address so the administration has been working very closely from the beginning. With congress vote on the senate and the house side. Oh you are gonna have as we've been discussing a framework released that shows the agreement between the administration. And the two tax committee attacks running committees on the ways and means a house senate finance on. How was that we're gonna lower rates we're gonna simplify the code we're going to make this country more competitive by making sure our businesses have much more competitive tax rates both small. And large but corporations because these are job creators 60%. Of our jobs are created by America small businesses and they pay right now. A largely a rate of 39%. Maria we need to address that dramatically. Our corporations have no incentive to reinvest profits into this own country because we have among the highest corporate tax rates in the entire developed world so. By addressing these things we help workers we help create jobs and we help grow the economy. Yeah I wanna ask you that that because there's a story in the journal today. I about the tax plan could lead the high wage occurs with little to gain when you're looking at the high earners rate vs the pass through rate ever to get back to that though because. We even having a conversation this morning Tony on the panel about the fact that the budget is not done yet. So we you're expecting a budget months ago now were facing a real deadline he are. Don't you need to see a budget agreement before you actually come up with this one and a half trillion dollar tax cut plant. You're right on the timing Maria the budget has to pass before we get the tax reform but that looks to be on track. Again we've been working very closely with congress on this issue and we feel that we'll have a very good resolution to the budget that will allow us come next month. To have tax legislation that moves forward and moves forward with the input of a lot of members it's going through regular order and ultimately helps all Americans so. You know the reason Maria and this is important to note we wanna get tax form done this year it's not just to kind of put a check next that a box. It's because the economy needs this benefit immediately you know that we've beginning beginning to get. Good growth numbers the markets are anticipating. A lot of the trump policies taking in effect we're deregulating particularly on. A lot of financial regulations that have rushed businesses have crossed growth. There's a lot of anticipation. Board this policy and we need to ensure. But the American people and those who want to own best. In job creation in this country understand. That we're gonna give them an economic policy that benefits them the benefits grow this economy creating jobs and raising wages these are all things that are the centerpoint. Of what we're trying to do with tax reform and why we need it done very soon. So in order to get. Situation where you just need fifty votes he'll have to go through reconciliation we say is you do think you're gonna go through reconciliation and only need to fifty votes you don't think. That the budget process will go to a long whereas that you're gonna be in October at your at a situation where you need the democratic. The data is actually participate here. Look at me we've been reaching out to Democrats as you know the president took senator Heidi hi camp on on the trip to North Dakota a few weeks ago Democrat from the state. We understand that a lot of what we're trying to do getting rid of loopholes and deductions under rigging the tax code that hurts average hardworking families. On that we're trying to obviously address about rape and raising. Arm a lot of support for middle income families by lowering their tax this. Doubling the standard deduction which it makes the twelve works 44000 dollars and Evan average married families' taxes. At a 0% tax rate. These are all things we know Democrats up supported in the past so we think there's opportunity. Obviously though we need to go through reconciliation where you go through reconciliation we need that formed done and done this here. Yes let me ask you that this during the journal because the lowering the 35% corporate tax rate. Also requires loving the 39 point 6% top rate for pass through business income should you had a if you've got a 28%. Rate for past the rail. And at 35% rate for the highest earners. Do you agree with this story which basically is saying the GOP's tax plan leaves the high wage earners with little to gain in this plan. Look if you're a small business owner and you're creating jobs and you're investing. In your company and you're increasing your workers' paychecks if you'd you'd deserve to have a pastor rate that is lower than the top individual rate. On and that's what we're trying to address on the passenger side and the corporate side try to make sure we have the most competitive rates to make us. A country that supports growing business and support growing jobs in this country. I'm on the individual side the focus has never been Maria as you well know giving of the wealthy a tax break. We want to make a pro growth. Tax plan we wanna lower rates obviously firfer as many Americans as we can but the focus has always been a middle income families and small businesses. Let me ask you this Joni in what what's going to be the big. Debate do you think debate is going to be a round the deductions that you wanna get rid of light eliminating the state and local income deduction number one. Or as the debate going to be around that 35%. Highest earner rate could you is still cutting taxes on the highest earners taking it from 39 point six to 35%. But you are eliminating. Back if where reading this right. That state and local income deduction so maybe it just ends up flat but is that we this sort of big fights are gonna be the battles are going to be people want progress here but if you can't agree on this stuff are obviously nothing gets not. Look look we obviously understand there's a reason tax reform hasn't happened in over thirty years and it's because lobbyists get involved. And people argue around a very small parochial interest vs the greater good of growing this economy creating jobs and helping Americans. Increased their paychecks they'll be fights around adoption elimination no doubt about it. We're trying to scrap. Almost every deduction except for mortgage interest and charitable and of course we're gonna protect retirement savings but everything else as you mentioned the state and local. Our tax look we obviously understand that we need to simplify this code. And we also have to make it fair so when you talk about state local you're talking essentially about American taxpayers subsidizing. Mostly wealthy taxpayers and high tax states almost 80% of those who pay. That deduction Maria rather who benefit from that deduction. Or six beggars in America we don't need the country a subsidizing. Bad state tax policy. And we need to make sure that we make a fairer code that benefits everybody not just the feel. Right so if you eliminate that that's it all sets the idea untethered that the state and local and top income deduction if you eliminate that. That offsets the idea that you're cutting taxes from 39 point six to 35. To the question is is back on this day up 35% high as a high rate there or are. Do you keep it or not point 6% that would be it tracing taxes for the rich want it. We will agree as. As we've mentioned many times the president is not thinking about making it easier. For the wealthy and the well connected they're the ones are benefiting from the existing system but they are trying to make all the tax Tony they pay most of the tax stop act. And and as you see on the up pastor rate you will ultimately show that we're making sure that those people who create jobs invest in this economy and we. Give their workers' pay raises are going to have a significantly more competitive. Benefit a sparse their tax rate are concerned by just lowering the pastor rate Maria. We want to make sure the economy grows that we create jobs are we raise wages that's really the basic idea. Behind tax reform you can call it a lot of things have tax foreign tax cuts actually this at a jobs bill this is about workers getting more money keeping more of their hard earned money. And this is about as you very long though. Growing the American economy so everybody benefits from the economy not just yet we're already getting notes from Wall Street firms this morning calculating what eight. You know 20% corporate tax rate will mean for S&P 500 earnings and what those companies like do with that extra savings in terms of investing in the business I mean everybody's talking about that this morning.
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