Transcripts For BLOOMBERG Bloomberg Technology 20171011

Get things done. Alisa global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im alisa parenti. This is bloomberg. Bloomberg technology is next. Johnson, in for emily chang. This is bloomberg technology. More problems for over including for uber, including a criminal investigation. Plus, amazon and microsoft taking the lead. We will hear from top executives at each firm. And a japanese billionaire and the founder of softbank, his first break and how he closed the investment of a lifetime with jack ma. First, our lede, the continuing saga of ubers legal troubles. The Company Facing two additional criminal investigations. Eric newcomer uncovered the scope. He joins us now. When i saw the notes this morning, im like, really, havent we done this already . Ive got to think the Legal Department at uber is feeling the same way. Eric it takes a long time for things to wind their way through. We knew about three criminal probes before. We are recording two new ones. We are now up to five. Cory these are all federal . Eric yes. Cory why are there five . Why isnt there one big one . Eric there are five different areas of focus. But, quickly, we have bribery, fcpa cory foreign corrupt practices act. Eric we have one rooted in the waymo fight and how they obtained whether they obtained trade secrets there. We have pricing. Cory thats the pricing the hell Software Program . Eric pricing is the one we know the least about specifically. Uber separated what it charges consumers and what it pays drivers, and there are a lot of questions around how it does it and how it calculates price. Cory they might be charging you and me different prices to go to the same place at the same time because you are loaded and im not. Eric there are lots of questions about pricing. Those are under investigation. Hell and greyball are the areining two, and they software. Hell was learning about competitors. Lyfts api, their public data, seeing where drivers were, learning about them. You are not allowed to violate a competitors terms of service when you agree to scrape the data. The general understanding is you will follow the rules they give you about it, and uber might not have. Cory which pieces are new . Waymo going criminal and the fact that pricing is under a criminal suit as well. Cory the suit between waymo and uber is imminent. There was a delay when some new information came out. When their internal investigation at uber became part of the record and that paused the trial. Whats the effect on the trial thats about to happen . Eric theres a risk that it could slow down. If people start getting subpoenaed or are worried they are going to have to plead the fifth, its possible that it slows it down. It depends on ubers desire to do so. So far, they wanted to move along and get this resolved. Cory its interesting. Having a new ceo and perhaps a new philosophy from many new Board Members might change the way they want to fight against these things. Its not just the sins of the past. The old uber might be very different from the new uber. Eric there is a question of how much they are trying to defend past behavior versus saying we have reformed, separated from their old ceo, changing the general counsel, firing a number of people after holders investigation. That question, whether they are positioning themselves as a new company or the same old company defending themselves, is an open question on some of these probes. Cory eric newcomer, thank you very much. More coverage from the geek wire summit in seattle. The biggest players in the area, amazon and microsoft, reviewing their efforts to improve diversity within their ranks. Joinsder Singh Cassidy us for a company that connects boards and qualified female candidates. She was a former executive at amazon. Good to see you. Tell me what you are doing at geekwire in seattle. Sukhinder im here talking about my favorite topic these days, diversity in tech and Corporate Governance, and, boy, are they intersecting right now. Cory whats the audience in terms of that message . Whats new in that conversation . Sukhinder in terms of whats new in the board of directors conversation, i think we need to look back to the last nine months, even here in the valley. Of course, we can look to hollywood right now for much of the same unfortunate news, which is, boards of directors being surprised by allegations against the ceo, which brings sexualharassment or Sexual Misconduct allegations. I think what we are really learning is that Corporate Governance is behind in the valley and particularly behind when it comes to matters of gender. Cory it doesnt seem like there are a lot of surprises that relate to hollywood. As it relates to Silicon Valley, this horrible behavior by some individuals is kind of an amazing thing. When i think of it from an investment standpoint, we know the companies that have diverse boards, diverse leadership outperform as investments. What message i would think that is a very convincing message to give to boards, because they want their stocks to do better, because investors want them to do better. But for you, when you are meeting with these executives, meeting with these boards, what message wins the discussion . Because no one is against this. Sukhinder no one is against it, so we all wonder why doesnt it happen faster. I spend the vast majority of my time talking to private company ceos, far more than public. Because i think the opportunity ity to changeers the direction of their companies. Most are driven by venture capitalists which brings one perspective, but it lacks the operating perspective. It lacks having a peer in the room. It lacks having the expertise you need in the room around Customer Engagement or acquisition or in culture or who your customer is. These are perspectives missing from the boardroom that could significantly change the probability of success for a founder. Those are the arguments that hold the most weight, which is an independent board and a board that brings extra expertise that, quite frankly, you dont have in the company, gives you a better chance of winning the day. At the end of the day, thats what founders care about. Cory amazon, an infamously difficult place to work, you worked there for a while how is amazon doing in terms of diversity . Sukhinder i think its a great question. Its no surprise if you survey all the tech companies, the large ones, whether you are talking about the big four or five, all of them have diversity challenges, and they have been transparent ensuring that data. What i think is more encouraging than not is that they are all actually sharing that data, which we dont see in private Company Dynamics and thats part of the problem. There is a lack of transparency in smaller companies. At the larger ones, i think this is going to be a multiyear battle, at amazon included, in order to get a gender equal and a diverse set of talent to the table on every job and in every role and at every level. I think amazon is not fearing any better or worse than google not faring any better or worse than google or facebook, but recognizes this is a multiyear challenge. Cory do the headlines of weinstein and the Weinstein Company and Harvey Weinstein does that help the cause . Sukhinder for sure. Look, i mean, you know, as much as we look at theboardlist as a positive force in the industry and very solutionoriented, i dont think anyone can take away from the power of repercussion in the negative sense, and i think the Harvey Weinstein case in some ways just reinforces much of the same bad behavior weve seen at Certain Companies and the repercussions for the ceo or for the investors or the Board Members for not being aware. So, although its a negative case and its unfortunate that thats what it takes to bring attention to the issue, i think whenever there is real loss of power or status or money, you know, people finally take action. So, to answer your question, yeah, whats happening with Harvey Weinstein does help the cause, even if its an unfortunate case. Cory sickened her Singh Cassidy, thanks a lot sukhinder Singh Cassidy, thanks a lot. Tells the story of his most profitable investment. And we are Live Streaming right now on twitter. Check us out on weekdays, 5 00 on the east coast, 2 00 on the west coast. This is bloomberg. Cory a story we have been watching, qualcomm fined a record amount by taiwans Fair Trade Commission for violating antitrust rules for at least seven years, collecting licensing fees from local companies during that time. Qualcomm disagrees with the decision and intends to appeal. Softbanks founder invested in more than 1000 companies, but one investment looms above all, an early that on alibaba. Nvestment. About the i it is considered to be the most successful investment in the history of mankind. Q invested roughly 20 million in alibaba you invested roughly 20 million in alibaba. 20 million to 90 billion is a return of about 4500 . Jack ma is a very distinct wish individual, now one of the most very distinguished individual, now one of the most what made you put in 20 million . He had no business plan. Maybe 35, 40 employees. But his eyes was very strong, strong eyes, strong, shining eyes. I could tell from the way he looked,the way he he had charisma, he had leadership. His Business Model was wrong. Its the way he talked, the way he can bring Young Chinese people following him. Before you who was so famous, you made an early investment in it which was before yahoo was so famous, you made an early investment in it which was profitable. How did you hear about it . I convinced them to take 100 million of our investment. At the time, we negotiated we agreed, they grew from 15 to 35 people, and we invested 100 million to own 35 , and actually t ipo and made a 1. 2 million into yahoo japan, 2 million startup capital. We owned 60 . Lets talk about one big mistake. You are making a lot of internet investments around 2000, 1999, 2001. The market went down and the tech crashed. It is said that you personally lost 70 billion of net worth. The greatest loss that any human being has ever suffered financially. How did you feel losing 70 billion of net worth . One year before that, actually, my net worth, personal net worth was increasing 10 billion per week. [laughter] so, for three days i became richer than bill gates. Did that upset him . No, before i told to anybody crashing. Tock started ok. So, in sixmonth after that, our share price went down 99 . Bankrupt. Ost went and somehow, i survived. Cory great stuff. Watch more of the interview with the softbank ceo on the David Rubenstein show peertopeer conversations on bloomberg. Com. Coming up, we are talking startups, cats, dogs. Next. This is bloomberg. Cory the seattle tech scene isnt all about amazon, microsoft, and vmware. Seattle is also home to a startup scene. Greg, how would you characterize this . I want to get to lots of cots cats and dogs questions. How would you characterize the startup scene in seattle . What drives it . Greg first of all, great to be with you. The start of seen in seattle i think is really driven by engineers. One of the things that seattle, thanks to the university of washington, amazon, microsoft, has is an incredible engineering backbone, incredible engineering talent, mojo which most of which has been imported here, so we really benefit from engineering talent. Its a the heart of most Great Technology startups. Cory so, really sort of focused on the geeked out part of it, whats technologically possible, as opposed to a marketing focus a la steve jobs or a product focus . Greg i definitely think we have one of the things we are looking to have this just really Strong Technology folks. So, we are compared to, say, Silicon Valley. We have a lot of strength in engineering and the hard science around big data, machine learning, artificial intelligence, cloud computing. Those are really areas of strength for seattle vs. Anywhere else in the world. So, you will see a lot of Great Companies in those areas from here, as well as other Companies Like ecommerce. Mobile grows well here. We have certain areas of strength, but engineering in particular. Facebook and google and a lot of the Large Technology companies have opened their second largest, other than Silicon Valley, engineering hubs here in seattle, so we really benefit from that in the startup world as well. Some of those people eventually fall in love with the city. Those of us in the venture area can take advantage of some of the great folks who come from the amazons, microsofts, facebooks, googles, that ultimately want to go and start a company. Cory my friends make sure they dont do recruiting in february. They make sure it is when it is sunny and wonderful. Tell me about rover. Rover is the Worlds Largest dog sitting, dog walking, overnight care company in the world. We have hundreds of thousands of customers. Of incrediblends sitters. It was an idea that really stemmed from an issue i had at a kennel where we took our dog. My parents were out of town. I couldnt find someone to watch our dog. I took the dog to a kennel, and it was one of the worst experiences ive ever had. I thought someone could do this better, maybe someone down the street who wanted to make a little extra money, who would love our god as much as we would. That was the birth our dog as much as we would. That was the birth of rover. It is something special. Cory the over uber of dog sitters. Feel free to correct me. How has the business grown . How big is it . Why is it important that it started in seattle, if at all . Greg so, its across the united states. Every city of any size has rover sitters and dog walkers. Its in the hundreds of millions of dollars. Its a real business. One of the nice things about this business is, if youre going out of town, its not a nice to have to have someone watch her dog. Someone needs to watch your dog. Rover is a superior, less expensive, and better all solution for people that really love their pets. So, thats why i think it has really caught on. The other reason it has grown so well is it has an Incredible Team of people that are passionate about dogs and theyve really done on incredible job of executing on this vision of every dgog every person should be able to have an experience the love of a dog. For those of us who have dogs, i have older kids now. They are not the ones greeting me at the door anymore. Its the dog who comes running up and is looking me on my face. Everyone should have that experience if they can. Cory not every startup provides the added benefit of getting licked on the face. Thats great stuff. Ruin the lastto of my excuses of why i dont get a dog, so im hoping my kids are not watching bloomberg tv right now. Greg your kids should definitely get on that. Cory you are not helping the argument. Thank you, greg got us in greg gottesman. Thanks a lot. We appreciate it. Coming up, microsoft is taking on Amazon Web Services head on. We will look at their latest moves and the ways they are going after the big cloud business. And if you like Bloomberg News, check us out on the radio. Check out Bloomberg Markets with me and carol massar on the radio every day. We watch new york, boston, and the bay area. We are on bloomberg. Com, also in the u. S. On serious siriusxm. This is bloomberg. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. Mark im mark crumpton, and you are watching bloomberg technology. Lets check first word news go President Trump will try to sell his tax plan in pennsylvania this hour. Is expected to say that the typical American Household would get a 4000 pay raise. Bloomberg television will carry the president s remarks beginning at 5 45 p. M. New york time. The president welcomes canadian Prime Minister Justin Trudeau to the white house. The meeting came at the start of a new round of nafta talks. Afterward, trudeau spoke to reporters at the canadian embassy. Thee minister trudeau president and i agree that the goal of the nafta negotiation, the goal of any trade negotiation needs to give opportunities to our citizens to succeed in an increasingly globalized world, to benefit from the opportunities that trade can give in a fair way. Thats the president s focus, and its certainly my focus. Cory 20 people are confirmed dead in what authorities call some of the most destructive wildfires in. Californias history about 8000 firefighters in californias history. About 8000 firefighters are battling the flames. Four deaths from hurricane marias aftermath are being investigated as possible cases of a urinespread disease that is raising concerns about exposure to contaminated water. Much of the island is still without power. The death toll is at 45. The u. S. Led Coalition Fighting Islamic State says it wont accept a negotiated withdrawal from hundreds of militants in raqqa. Anies are scrabbling to save estimated 4000 civilians trapped in the city. Im mark crumpton. This is bloomberg. Its just after 8 30 thursday morning in sydney. My colleague has a look at the markets. Adam good morning. We are expecting a largely muted start on the back of those fed minutes. The dollar, of course, the major move her to come after major mover to come after that debate. Inflation is still very key to the decision on where the rates go higher and the pace of rates going higher. In asian equity markets, we are largely flat. There should be a few games. To 25 closing at the highest level nikkei to under 25 closing at the highest level since 1996 yesterday the closing at the highest level since 1996 yesterday. Im adam haigh for Bloomberg News in sydney. Cory this is bloomberg technology. Im cory, in for emily chang. We have been bringing you guests from geekwire summit. I think are offering is super strong acrosstheboard. When you think about our differentiation in terms of having a hybrid approach, where you can tradition transitions of the cloud as you want to transition where you can transition to the cloud as you want to transition. We are working at the os level, the database level. Helping people at all levels. Of productivity. 365uring out how office integrates. What we are hearing more and more from customers is they are thinking about the relationship they have with microsoft and the broad sweep of capabilities suite of capabilities. Emily im curious how you see the pie being divided differently in the future. How do you avoid amazon becoming the default choice for customers . Kurt we are doing very well in the market right now. There is not going to be a default choice. People are going to look at the particular opportunities, what the Value Proposition is for us vs. Amazon vs. Others. I dont think we will get to a place where anyone vendor is the default choice. I think you will have strength in the market with the people who seem to be emerging now. Emily what are some areas that you think azure will be bigger and faster in the future . Kurt in terms of our hybrid capabilities, are database offering. Think of all the people you see on premises today, and some of the announcements weve made in terms of being able to search to the cloud, but also super easy movement to the cloud. At the database layer, i think we will be stronger. I think our ai capabilities and our Cognitive Services when you think about all the data that has been in office 365, meeting with, who i am talking to, how do i as either a thirdparty developer or a summary who uses office 365 leverage that data to build interesting, rich applications as well . Emily they think a. R. And v. R. Is overhyped. Its not building as big and fast as people thought. These are two big areas that microsoft is making a bet on. How do you respond to that . Do you think it is overhyped . Kurt we are seeing some early wins. I think we are seeing a lot of developer interest in the capabilities for building into windows. I think there is a period where there is a lot of hype coming in, then there is a building of the actual use cases. I think there is no doubt that there is that building period we are in today. Its a great opportunity for us. If you believe in the vision and you believe thats important in the long run, those are the periods of time where you say im doubling down, im going to be really strong in this area. It did you the time to build a superrich offering. Emily when do you think mixed reality will be everyones reality . Kur i think he will startt kurt i think you will see argumentation of your reality in the next augmentation of your reality in the next few years. You will see the combination of a scene that exists in front of you with augmentation. Those wines of scenarios are going to emerge very soon. Those kinds of scenarios are going to emerge very soon. Emily whats it like watching the efforts the Trump Administration is taking to roll back healthcare. Gov . Kurt on a personal level, its very difficult to watch. I believe people have a right to health care, Affordable Health care. I think the actual obamacare, the aca, is a Strong Foundation for building the capability to deliver health care to all citizens of the united states. This is a personal point of view. Its hard for me to watch. Emily before you ran healthcare. Gov, you ran microsoft office. Im curious how you think productivity is going to be different in the next one to five years. How will the way i work change . Kurt everything just being a lot more seamless and easier to do. Think about how teams work. Weve done a lot with Microsoft Teams to say there are so many different channels in the way you communicate, but a team acts as a single unit. How do you bring everything together, whether im chatting with some of the, doing email, collaborating in a document . , its avery first time huge opportunity. Ive worked in collaboration for so long. Weve got this offering and this offering, but how do they finally come together. You will find a place where people intuitively come to a team site in all the different ways they want to communicate and all the different ways they want to communicate are just there. Cory kurt delbene and emily chang. So, how has it been . How is seattle . Emily hey, cory. Thanks so much. Seattle is fun. If the secondbiggest tech it is the second biggest tech hub in the country. Microsoft is in bellevue, adjacent to seattle. Beyond amazon and microsoft, you have a spoke and google and alibaba and even you have facebook and google and alibaba and even baidu. Tos interesting, in talking a venture capitalist yesterday, she talked about how she thinks that folks in the seattle tech scene may be even more loyal to their companies than they are potentially in Silicon Valley, because a lot of talent is coming from Silicon Valley to seattle, because there are fewer options. But that loyalty can really pay off when it comes to company productivity. Take a listen to the conversation we been having with some of the folks we have been having with some of the folks. Seattle is one of the major tech hubs in the world. It boasts 100,000 experts in i. T. Emily the start of scene continues to evolve here. I think its always the start up scene continues to evolve here. Its always been strong. The Cloud Capital of the world. It is definitely cloudy in the weather. But, really, between amazon and microsoft and all of these other companies, you are going to find an incredibly fervent engineering environment with lots of creativity. Emily the clouds have been fairly clear while we have been here, so we have very much enjoyed the weather as well. Cory there is Nothing Better than a Beautiful Day in seattle. I couldnt agree with you more. Emily chang, great stuff all week. Thanks. Coming up, zillow dabbling in 3d technology. This is bloomberg. Cory rich people are avoiding investments in bitcoin. Thats according to the ceo of ubs. He talked to bloomberg and told us that High Net Worth investors are curious, but to skeptical to toost in but still skeptical to invest in cryptocurrency. We are allowing a listing agent or a home seller to take panoramic photos with a regular smartphone. That allows a homebuyer to get a full perspective of the home, where you feel like you are in it. We are testing this in just one city for now. For us, its all about providing these tools at scale, so people can do a better job of trying to imagine what life would be like in that home. Emily you are adding new data, realtime Consumer Insights on rentals. We have taken all this incredible data we have an packaged it up for multifamily partners. The people that operate 20,000 buildings now have information on what types of buildings are people looking at, what rents are being paid, whats the demographic information of these renters, and they can make decisions about their Asset Management portfolio, theyre pricing strategies, their branding of these buildings. Its another way we are taking this data and empowering professionals with this information. Emily how does that affect your brother bottom line . We sell advertising to them, but we think becoming a bigger part cory lets listen to President Trump in harrisburg, pennsylvania, talking about tax cuts. President trump we love pennsylvania and we love our great truckers. I also want to thank all of our wonderful members of congress who are here with us today. Should i read their names . Yes . Then i will. Representative lou barletta, great guy, running for governor. He is running for the senate. Where is lou . I heard he was running for governor, but then i heard he was running for the senate. He is going to win. Youre going to win big. Good luck. A friend of mine for a long time, representative mike kelly. Thank you, mike. Tom marino, going to be the drugs are drug czar. Hes going to do a great job. Thank you, tom. Patrick meehan. Patrick, thank you, patrick. Scott perry. Scott. And lloyd smucker. Lloyd, thank you. Thank you, lloyd. I also want to thank a couple of very special people that have been fantastic in what they have done. Secretary of the treasury steve mnuchin, who is here someplace. Steve. And gary cohn, director of the National Economic council. Thank you, gary. Thank you. Mike, the speaker of the Pennsylvania House of representatives. Thank you, mike. I think thats enough, right . Thats enough. We will start losing the crowd, mike. Before we begin, i want to take a moment to address some of the recent tragedies that have struck our incredible nation. In the darkest moments, the light of our people has shone through like seldom before. Their goodness, their courage, and their love. No and Destructive Force on earth is more powerful than the strength and resilience of the american people. We are praying for all of the families affected by the horrific mass shooting that took place in las vegas. Williveve with you and we never leave your side. Our hearts are also with the victims of the wildfires in Californias Napa and sonoma valleys, and they are wild and dangerous fires. And we have fema out there right now, along with a lot of First Responders doing an incredible job with everybody else, and they really have done an incredible and its a very dangerous my fema people are incredible. Incredible. [applause] weve issued a disaster declaration and are working closely with state government. The recovery effort is fully underway for those impacted by the recent catastrophic hurricanes. Through these difficult times, we have witnessed the unbreakable spirit of our nation. Together, we will restore, rebuild, and return stronger than ever before. Thats whats happening. [applause] were here today to discuss our vision for americas economic revival, which has already started. It started on november 8. [applause] taxes, bigger paychecks, and more jobs for american truckers and for american workers. [applause] nothing gets done in america without the hardworking men and women of the trucking industry. Do we agree with that . [applause] thank you so much. Job you do. When your trucks are moving, america is growing. Do you agree . [applause] that is why my administration steps to historic remove the barriers that have sloan you down slown [sic] you down. America first means putting american truckers first. Since january of this year, we have slashed job killing red tape all across our economy. We have stopped or eliminated more regulations in the last eight months than any president has done during an entire term. [applause] not even close. Eliminating the regulations that drive up the costs of energy. We want lowcost banks well for our truckers lowcost fuel for our truckers and for our families all across this country. And we are just getting started, believe me. Just getting started. [applause] ive ordered every agency across federal government to review and then remove the regulations that destroy your jobs, hamstring your companys, and undermine your ability to compete. My administration is also committed to passing a historic infrastructure package that will generate 1 trillion to rebuild americas crumbling infrastructure with a special focus on roadways and highways. [applause] it is time to take care of our country, to rebuild our communities, and to protect our Great American workers. Its about time. [applause] already, we are seeing the incredible results. Thelts that, in many cases, media hates to report, but i will report them tonight. [applause] 16year ent is at a low. [applause] and you knowing, you havent heard that in a long time. [applause] the stock market is soaring to record levels, boosting pensions and retirement accounts for hardworking americans. Their values are going up every single day. [applause] proudly, just in the stock market alone, we have increased our economic worth by 5. 2 trillion. Thats right since election day. 5. 2 trillion. Thats 1 4 of the 20 trillion that we owe, so weve already in the lasto this, eight years of the administration, the debt doubled, so that in eight years, our debt, literally hundreds of years of debt, doubled in eight years to 20 trillion. But since the election on november 8, ive increased the value of u. S. Assets to more th an the 20 trillion we currently owe. Thangrowth reached more 3. 1 way ahead of schedule. We werent supposed to hit that number for a long time. I think this quarter would have even been better, but we did get hit with some very, very powerful hurricanes. But its still going to be very good. Manufacturing confidence is at an alltime high, which is great news for those who ship products to the marketplace. The confidence in our country is back, like it hasnt been in many, many years. [applause] the fact is america is finally back on the right track, but our country and our economy cannot take off like they should unless outdated,rm americas complex, and extremely burdensome tax code. [applause] [laughter] [applause] thats why im here with you right now tonight. Thank you. And we are going to fight and we are going to get those republicans and maybe a few of those democrats to raise their hand. And you are going to have so much money to spend in this wonderful country. And this great economy. Weve proposed tax cuts that are progrowth, projobs, proworker, profamily, and proamerica. [applause] need a tax system that is fair to working families and that encourages companies to stay in america, grow in america, spend in america, and hire in america. [applause] year, myt the administration has worked mostly with congress to develop a framework for tax reform that will deliver exactly that, more jobs, higher pay, and lower taxes for middle income families and for american businesses of all size. [applause] framework will achieve our four core principles. First, we will cut taxes for every day everyday hardworking americans. [applause] firstour framework, the 12,000 for a single individual and the first 24,000 for a married couple will be taxfree. No tax at all. [applause] remember, you will do your tax on a single piece of paper. [applause] block will not like donald trump very much. Thats one company, i will tell you. They will not like me at all, and thats ok. We are nearly doubling the amount of income that is based at the zero bracket. In other words, as the democrats say, and do they say, you look at whats happened, they are not telling you the truth. Because they pretend there isnt a zero rate. And there is and it is expanding very substantially under my plan. They dont show the zero rate. So, they go, oh, 15 or 12 against 15 , but its not. Its 12 against 0 . You take a look at the categories. We are bringing it down from eight brackets to four, but they are forgetting to use the zero bracket, which truly is deceptive. Do we agree with that . Its truly very deceptive. Under our framework, we make the zero bracket bigger and get rid of the 10 bracket, and we are reducing the 15 rate down to 12 , so thats a massive amount of money. Down torates are coming 35 , all big and beneficiaries from what you have now. Big beneficiaries from what there is, like you havent seen before. Susie, as today is retiree who recently moved to pennsylvania from queens, new york. Well, i like both places. I like pennsylvania. I grew up in queens. Went to school in pennsylvania. I like them both. Where is susie . Hi, susie. Our you doing . How are you doing . Youre going to be happy with this right this, right . Susie says high taxes are making seniors like her to make painful cuts and cutbacks during the golden years of their lives, best years of their lives. She Hopes Congress will pass our framework so that we can help more american seniors make ends m on a fixed incomeeet meet on a fixed income. We must honor and respect the people whose decades of hard work helped to build our country and to make our country great. But were going to make our country greater than its ever been before. Thats what happening. Whats happening. Our framework also provides relief to those who care for an adult dependent or elderly loved one through a 500 tax credit. So important. And so many people have wanted it. And we will substantially increase the Child Tax Credit to save working families even more money. [applause] the single most important investment our country can make is in our children. The strength of our nation is determined by the strength of our families. We are committed to helping parents make starting and raising amake starting and raisa family more affordable. Loreneith us today is cummings, a mother of four that owns a small Staffing Company staffingides private services and athome care. Where is she . She if says if congress creates more tax reform she will be able to create more jobs in this grant area. That is an area we love, i will tell you that. Theframers will unlock American Dream for millions of fellow citizens by eliminating tax breaks or special interest loopholes that primarily benefit the wealthy. Ensures that the benefits of tax reform go to the middle class, not to the highest earners. It is a middleclass will hear it that is what we are thinking of. That is what i want. I have had rich friends come up to me and say you are doing this tax pl d