Transcripts For CNBC Power Lunch 20170928

I need a hero welcome to power lunch. Im Morgan Brennan the stocks are holding steady. We have a mixed session. Two more trading days to go in september, the dow and s p 500 are on pate for an eighth straight quarterly gain. Mcdonalds giving the biggest boost to the dow today the transports hitting another error intraday high well drill down on some of the big movers roku, stock of the day, this is up 50 on its ipo debut. Also keep an eye on mccormaiccck we begin with washington, President Trump unveiling the longawaed tax pla promising tax cuts today House Speaker paul ryan and the top economic adviser came to squawk box to push the plan ylan mui joins us with the latest. Reporter it will have to go through the sausage grinder before it can be legislation, gary cohn was very clear on cnbc the 20 corporate rate is nonnegotiable. Speaker ryan was equally clear that the house is committed to hitting that number. Look, when we polled the border adjustment from our build back in the middle of the summer, we spent the next three months rewriting the whole thing, reworking the numbers and making sure we could get to 20 , which we can, and were very excited about that we have to stick the landing on that and were just as committed as the white house is on holding through on that. We would have liked to have started lower to give ourselves negotiating room we are at 20 20 is a bright line test for us. The president has said it, he said it yesterday, and hes been clear about it we are not going over 20 20 is the top of what were willing to go on the Corporate Tax rate. Reporter at his Weekly Press Conference speaker ryan did acknowledge there are already some things that lawmakers have had to give up one of those is the push to lower the Capital Gains rate its one of the casualties in the Health Care Law not getting passed as some of you probably know how the numbers work, not getting the Health Care Bill passed baked into the basine that 3. 8 tax thats like 170 billion its all about fiscal space. The next step is getting a budget passed. I asked speaker ryan whether he believes a tax package shooter deficit neutral. He said yes, but when i asked how he plans to do that, he just said, youll see back over to you. Thank you, ylan now to john. Its going to be very difficult for republicans to get this through we skew on health care how difficult that was lets just run through them. A tax base odd fairness, republicans have a lot of details outstanding in this plan but when the start with the bottom rate 10 to 12 and the top rate coming down, those are big fat targets for democrats to go after. Second, credibility. The administration is now saying the wealthy do not get a tax increase that is not clear on the face of it and certainly from the elimination of the estate tax, that only goes to the wealthy. Theyll have some of the same problems they had when they promised better care and in fact were taking caraway from significant numbers of people. Third is smaller benefits, bigger costs when weve had previous tax cuts, Ronald Reagan in 2001, the economy has less of a growth boost, and when you had the george w. Bush tax cuts in 2001, now the the economy was in surplus. Now its in deficit. You have party discord only 52 members in that republican caucus, and they do not venity within the caucus remember, steve bannon, who was insi the white house, was advocating a 44 rate for top earners. Hes outside pledging a fight with the republican establishment. You can bet that will come up. Finally the obstacle is time theyre way behind schedule. They hoped to have this done by the august recess. Thats not happening with all the decisions left to be made, this will stretch well into 2018 and run into the 2018 elections. John, thank you very much so the framework has laid out the battle lines have been drawn. You just heard john talk about some of the obstacles that could making getting a deal done tough. Eric cantor, former House Majority leader, now vice chairman of mull is company. What would you say the odds are . Odds are pretty good. Better than 50 . Yes, for sure given where washington has been over the last eight, nine months, the imperative here is things have to get done. I was opt mickic on health care and said it was going to get done obviously we have seen even the latest in the past week whats happened there, but you know, john laid out aft difficult hurdles that exist listen, theres a reason why there hasnt been overall major tax reform since the 1980s thats what were facing here what i dont understandbels about the plan youre trying to sell it to the american public. Taxes are incredibly complex and difficult to understand. Yet in this plain they raise the lowest end and say dont worry were going to double the standard deduction most people dont understand how that works thats red meat to the critics would you have done that the impact de facto is yes, there will be a zero Percentage Rate because of the doubling of the standard deductions. But listen, tax cuts are religion for the republican party. This is something that republicans can rally around this will be a significant tax cut for working middleclass americans, and it would put us, in terms of a competitive posture for the country in a much better way that we can actually see growth return to our economy. Because it is so intertwined with the gop and how people identify with the gop, speaker ryan was so confident thorn when he appeared on squawk box, that this would get down and done by the end of the year. I asked him that question, he said yes otherwise we wont get the 3 next were. Would you go so far to say that . The big win yesterday was the buyin of the members of the house conference, and specifically those in the Freedom Caucus who said, you know what . Well accept this, and as a signal that theyre going to support the budget that is really whats been uncertain. As we no, that passage of house and Senate Budget is critical it sets up the framework for lowering the voting threshold under the reconciliation process. That assumes that every single republican will vote for it. Well, youve got to, in the budget it will be a 51vote threshold, obviously a simple majority in the house. Theyll get that done. Now, the difficulty lies in getting the actual tax package passed that will be down the road theres a lot of people interested, vested interest in the existing tax coats, as topped said earlier, this is where the sausage begins to be made. Speaker ryan says the elimination of that deduction has to be there to make the numbers work, but it also seems like it could be political suicide. All of this is up for negotiations i think the tough line being taken by the white house, paul and others on the hill needs to be taking, but as we know, this is an ugly process there are going to have tore giveandtakes, because this board adjustal tax was thrown out, there needs to be significant pay forwards, the deduction of sales and local taxes is a big one, and how that offsets with the doubling of the standard deduction will be critical in these blue states where are taxes are higher. I was trying to find an elegant way to ask the question, so i will ask it the way it was in my head is there any way to look as it, as i call it, the blue state payback . Anything other than a giant onefinger salute for the states that voted for clinton. Consistent with the representation by the president , it will specifically hit people like you, brian. It will. And you too, melissa, dont smirk at me. It will not hit middle class in the blue states theyll be taken care of in this removal of the doubling of the standard deduction. How do you make the passnew numbers work a lot of people dont realize that 95 are working with this passthrough, and when youre talking about benefits to the middle class, the passthrough is the biggest, but then you have these reports that folks on wall street stand to benefit the most, so what is the compromise there . All of this, again this is where the real grinding will take place, as you rightfully suggest, 95 of businesses are taxed at the personal level, the individual level what will deficient business income from person income. Wall be a solution theyll have to put in guardrails to make sure there isnt abuse in the system. This is the same argument thatsing going around the carriedinterest question. What is business ince . What is necessarily ordinary, not capital income in the context of carried interest . The same way, congress will have to work out which industries may be exempt from that, which industries are going to be taxed at the higher level, and which can come down to the 25 . But the gop has majority control in the house, the senate and white house. Who exactly is the gop negotiating with listen, there are again, going back to the statement, tax reform has not occurred for 30plus years, because its so complicated. There will be negotiations based on where members come from, whos in their districts, which employers are there, how it impacts people at home thats how our system works. People win and loose at home, not in washington. Eric, a pleasure. Thank you very much. Good to see you again. Nice to see you go hokies. Thank you a big game saturday. A news alert sevenyear notes are up for auction. Rick santelli is tracking the action how is demand . Well, everybody should do their happy auction dan, yeah, its happy dance we have give an a for demand its been a long time since weve seen such a called auction. Went through the dutch auction process with a yield of 2. 13, well below the 2. 142 when issued and it w high price, even ice, outside the range, but it doesnt end there. 2. 70 bid to cover the third best bid to cover in 3 1 2 years. 70. 6, takes out that 69 ten auction average. Directs at 19 , the secondbest level in three years, and dealers ohm primarily dealers only take about 10. 4 , a nice aauction. I know yields have moved up a bit. Well have to continue to monitor. Does this mean rates will stop going up i dont think so, but its certainty nice to see investors find a level that finally interests them on the current. Were going to go back to melissa lee now. Coming up, case dismissed. The s. E. C. Losing the highprofile fraud case against lynn tilten. Her lawyer says shes been totally vindicated she joins us for an exclusive interview. Go pro unveiling the next big thing. Will this be enough to keep the trend going . The ceo joins us live, next. Power lunch is back in two most etfs only track a benchmark. Flexshares etfs are built around the Way Investors think. With objectives like building capital for the future, managing Portfolio Risk and liquidity and generating income. Thats real etf innovation. Flexshares. Built by investors, for investors. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. The dow transports a record high today, as airlines take to the sky led higher by American Airlines, hosting investors in texas. A live exclusive interview with Ceo Doug Parker coming up in the second hour of power, that recent hurricanesing, from upcoming earnings, though it is pairing dismissal days, airlines remain the worth performers, other winners feddics and ups. For the quarters truckers and truck brokers. As hurricanes recovery propels demand and most interestingly, as the freight insurance experiences its first true peak season since the recession weve seen huge demain near peak levels youre also seeing instrument activity this year, pickett upas well how many boxes of people. Hes a hero its amang thats majority hag gotten a lot harder go pro is off the lows of the day. Year to date, but can it continue its momentum. Youve just introduced nick, the new camera you all have this new custom designed processor called gp1. How does that impact performance . Well, gp1 is allows us to double the performance of the predecessor. We now have twice the frame rates, captures 4k 60. Its a lot of numbers. What that means is its a powerful camera that can pump out high frame rates we now have video stabilization thanks to gp1 so hero 6 is by many country miles the most capable and powerful gopro we have made. You said its going to cost 500. Yes, 499. It sounded like you were targeting that core gopro uses for a premium product, is that the strategy well, we still sell our lowerpriced products. Hero 5 black is still 400 but hero 6 black is just in another league this is a camera that professional accounts use to film and television it goes fast are their hero 6, and our consumers customers are looking for the best from gopro, and our sellthrough tends to skew towards our highest performance products, high zest price products we expect that to be similar for hero 6. Morgan mentioned your stock is up about 30 so far this your some skeptics say they see the market is shrinks, and you mentioned sellthrough down 9 year over year market saturation, tougher competition, why are they wrong, nick theyre wrong, because theyre comping against a year, 2016, where we unfortunately had to do drastic Price Reductions and sell off a lot of inventory to sell through the inventory that was in the channel. So those Price Reductions led to higher sellthrough volumes because of the lowerprice products, so 2016 is really not that realistic of a comp to really understand the health of gopros business were growing unit sales over what we did in 2016. So gopro is actually growing in the number, but obviously well off its highs, 98 in the fall of 2018 are you confident this is the product that will jumpstart shipments and get investors excited . Its part of our Growth Strategy definitely an exciting new product. Its a new meaningful price point, because we think a lot of our customers will op for hero 6 black, but dont forget we just introduced fusion which is our fichal 360degree camera that up people are excited about our software continues to improve, it works like an untethered lens foyour phone and all the footage moves to your phone now theyre using the gopro and their phone to share their lives in cool new ways. Thank you for joining us. Appreciate it. Thanks, josh, josh lipton and nick woodman from gopro. Puerto rico in desperate need of crucial supplies many are stuck in ships and barges outside the support were live on the ground there, next whoooo. Youre searching for something. Like the perfect deal. On the perfect hotel. So wouldnt it be perfect if. There was a single site. Where you could find the. Right hotel for you at the best price . There is. Because tripadvisor now compares. Prices from over 200 booking. Sites. To save you up to 30 . On the hotel you want. Trust this birds words. Tripadvisor. The latest reviews. The west prices. I cant wait for her to have that College Experience that i had. The classes, the friends, the independence. And since we planned for it, that student debt is the one experience, im glad shell miss when you have the right financial advisor, life can be brilliant. Ameriprise into President Trump President Trump waiving jones act rules. The shipping companies are protesting this could make problems there worse Contessa Brewer is live in san juan with more contessa reporter so, brian, heres why. Already out at sea there are lines of ships, all of them loaded up with Cargo Containers, and 1,000 containers waiting to get into the terminals and be unloaded, but theres terminals Cargo Containers as far as the eye can see, some 10,000 indeed port of san juan now yesterday they were moving like 70, diaw they had move 111 Cargo Containers this whole operation is running on generator power, going through 4,000 gallons of fuel, not just for the port operations, and you can see some of the trucks coming down and bringing the containers off a ship theyre yield it to power this operation and term gnat operation and the generators on refrigerator trucks. Diesel is in such crucial supply, almost all of the island is running on generator power. So how are re coming to you . Were plugged into the car battery here to fuel our live shows, and rear reliant on getting a strong cell phone signal in order to send you the video feed in this particularpot, would event that more than 90 in the island is without cell service the arm corps of engineers is working on providing generators, and theres a lot of finger pointing saying the waiving the jones act temporarily is a reply cal ploy to get people talking about Something Else it would not improve the logistics on the scene here, gu guys. Ive heard to other sourceses you have other types of ship stuck, but waiving the jones act is a first step in the right direction. Whats being floated what are you hearing on the island in terms of how to remedy getting Truck Drivers to their trucks and go ahead the diesel into the trucks. Reporter that is the whole problem even the fema director said they couldnt land more you have to make do with what you have the backlog is being created because the drivers either cant be contacted by cell phones by their Trucking Companies they dont have the gas for their personal vehicles to get to work. When they do, they may not have gas in the semitrucks to come up and pick up the Cargo Containers, to say nothing december back inlid. Okay. You can see there this is a difficult fall as contesta laid out, hiked up to a car batly to get you a signal right now let us talk about a group of stocks that have been in the investing fast lane that would be the rv trucks thanks to Strong Demand motorized sales up 66 as millennial continue to get behind the wheel this comes as rv stocks are revving up hitting new highs today, and camping world hit a fresh alltime high yesterday. Manufacturers and dealers credit the industrys recent grow to younger buyers as the affordable rv provide ago mo economical way to travel theyre using them for tailgates or and on a programming note, bob martin will be on mad money tonight. Can i throw you under the rv with a question . Pun fully intended we hear about mill len yams cant buy a house, theyre eating ramon, but now we have sales booming. You can find one for 5,000. Youre not going to the soupedout, the fancy ones, but theyll be more affordable, or you can even rental them. Did thor talk about any bump from the hurricanes . This is a great question. Not a lot of harvey impact talk fema is putting people into hotels and apartments. We should see a bit of a boost, but not as much as you would thi think. We connect the dots between taxes and your money, next im val. The orange money retirement squirrel from voya. I represent the money you save for the future. Whos he . Hes the green money you can spend now. Whats up . Gonna pay some bills, maybe buy a new tennis racket. Hes got a killer backhand. When its time to get organized for retirement, its time to get voya. [ thats a good thing, eligible for medicare . But it doesnt cover everything. Only about 80 of your part b medical expenses. The rest is up to you. So consider an aarp Medicare Supplement insurance plan, insured by Unitedhealthcare Insurance Company. Like all standardized Medicare Supplement insurance plans, they could save you in outofpocket medical costs. Call today to request a free decision guide. With these types of plans, youll be able to visit any doctor or hospital that accepts medicare patients. Plus, there are no networks, and virtually no referrals needed. Join the millions who have already enrolled in the only Medicare Supplement insurance plans endorsed by aarp. And provided by Unitedhealthcare Insurance Company, which has over 30 years of experience behind it. With all the good years ahead, look for the experience and commitment to go the distance with you. Call now to request your free decision guide. Hello, everybody im sue herera, heres your cnbc news update. Congressman Steve Scalise with thunderous applause after being welcomed to the chambers he was almost killed by a sniper during baseball practice. When i was laying out on the ball field, the first thing i did, once i was down, is i just started to pray. I will tell you, it gave me an unbelievable sense of calm, knowing at that point it was in gods hands. North korea says that american st american student Otto Warmbier was not tore kurd. This came a day after the coroner said he died from lack of oxygen and north korea said it provided him with medical care despite his hostile acts against the country. Dicks Sporting Goods is recalling more than 200,000 resistance tubes it has received dozens of reports of the breakage. The tubes are used as upper and lower body workout equipment so send it back. Melis melissa, back to you. Lets bring in guys, good to have you. Fadeem, is there anything in your forecast for the markets that incorporates expectations of any fiscal reform look, you first want to look at whats market already discount discounted they then underperform severely and turn back up. The market is discounting a bit of a fiscal stimulus, and some passage of tax reform. If it does pass, i do think you could continue to see some incremental gains by the market. I dont think theyre huge, but thats not yet built into the market expectation. One of your pick says bp, it falls into a sector, where we saw that trading pattern, and now we have the reawakes in of the reflation trade is that just a kicker in your view . So i think tax reform is a kicker its not a big part of our thesis the market is clearly discounting something or a lot of things given the valuations its at, but with energy being particular, yes, its that reflation trade. Thats higher demand, higher Economic Growth, higher rates, so we think Companies Benefit from the demand, as well as whats going on with just kind of supply and demand with oil globally, but theres a number of things going on, energy and rates are not exactly tied but youre advocating being long the u. S. Dollar, right . Against the swiss franc . Part of what we have seen over the past month is that reversal of the weaker dallas trend if we good some reform, part of that would be repatriation is that also just a kicker are you expecting the dollar to reverse and have its lows for the years behind it in the Rearview Mirror the weak dollar was a surprise to us i think its contributed to the significant outperformance when you look at it in local currency to the extent it reverses, i dont think initially it will have an impact to the extent we move into the next year and the dollar continues to strengthen, it provides a bit of a headwind and we would favor efa, europe and japan ther than the u. S. How mh of that is the rising u. S. Dollar and the corollary is rising interest rates, especially with janet yellen broadcasting her intentions to raise rates unless inflation remains stubbornly low. Fadeen is much more knowledgeable on the dollar than i am i think higher rates are not good for the market as a whole were a value firm, we focus on value investing, and i think whether they know it or not, a lot of investors investing in Industries Like utilities, telecom, reits, that tend to be correlated, you get higher multiples, i think a lot of investors are in for a shock rates should move higher certainly pretty soon here, we think the fed does continue to hike i dont see thats built in. Theres certain pockets of bond proxies or defensive stocking like the sectors i mention that probably are hurt the most by rising raids. Thank you, we appreciate your time good to see you both. Thank you. She has spend more than two years battling the s. E. C. Over fraud charges, a judge throwing out the charges, famed visitor, cann tilten joins us to discuss the se and where she goes from here thats next on power lunch. What are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. See options data like never before. With thinkorswim only at td ameritrade. For tech advice. Dell Small Business advisor with one phone call, i get products that suit my needs and i get back to business. Welcome back for more than two years, s. E. C. And fraud were attached to every headline for lynn tilton robert frank has the story. She is known as the diva of distress debt. She built an empire more than 70 companies. She not only the owned the companies she was turning around including duringa automotive and md helicopters, she also controlled the Investment Funds that lent those companies money. The distress took on new means when she was sued, alleges she defrauded investors. The agency sought more than 200 million in clawbacks the agency spend five years vetting tilton and her company, and the twoweek internal s. E. C. Trial ended last november. Yesterday an Administrative Law judge for the s. E. C. Dismissed the case and ruled on all counts in favor of tilton saying, quote, the violations alleged by the s. E. C. Are unproven and tilton does not conceal or omit Material Information joining us for her first interview since that ruling, lynn tilton. Thanks for being here. This was actually eight years of your life. It was. What was that like its been a challenge, eight years of having this shadow over my shoulder, and certainly the last two years of being the front cover of many media stories none of which looked and as you told you early they were without merit, and i would fight for my truth i had so many companies, tens of thousands of people who needed the shadow lifted, because it affects or business. Weve seen a lot of people just settle to get it done did people say just pay the fine, good et it over with yes, people told me it would be nearly possible to win, especially if i got caught in the adminirative courts, which i dont know also you. The s. E. C. Charges you with something, and then their own court, with their own judges then decide. You have saying that was not fair. It doesnt afford you the due process protections. So with my wealth, my reputation, my world in jeopardy, i was put into this Administrative Court with no depositions, no discovery, none of the article iii protections that you want when youre fighting for your life. But you won but at a huge cost tell me what this cost you in terms of your reputation, money and your companyies you had at one point 70 companies, now its around 50. Its cost me many tens of mills onof legal fees, including the copyindicate cases that i would have put into my companies, because i was funding these companies myself since 2012 its caused reputational damage in contracts, and its been a burden on my people who care so deeply for me. Interesting, as most of the world abandoned me none of the people who work for me did, and im so happy for them that this shadow is lifted and we can go back to doing great business. How many people dont employ . Nearly 100 across the companies. Did it feel personal . It felt very personal they investigated for more than seven years they had many different theories when they couldnt find anything, this he chose to bring in contract case at best interpretation of the legal documents, and i think as a woman, i was an easy target. I hope none of our audience has to go through in terms of what you went through. Take us through it do they just depose you constant do they get use your life . Or mostly lawyer to lawyer meetings they enter viewed 75 people, brought three to trial it was so invasive they spoke to every bank that worked with me they spoke to investors, they spoke to people who worked for me, and they just document after document they had my emails for close to ten years, but interestingly they didt use any in trial, becae there s nothing to use against me, they allegations were completely without merit from the start. Do you feel confident you are out of the crossharris if you think this is motivated by something personal, are you confident they wont go after you again . Well, i think this was the past administration they held it in the federal courthouse and dressed it as if it was a federal court. And the most senior people sat in the front row from the s. E. C. It was a 14day trial. Even andrew sorezni was there most days, and they pressured this judge they wanted to use me as a highprofile guilty human being. I will tell you, im grateful to this judge the dark secret of this case and what is really important, it started, we know from this trial, because of mbia working with the s. E. C. Or at least provides information would this a commercial dispute that a company was able to convention the government to go after you . It certainly seems that way there is certainly an email withhe s. E. C. And mbia tha came out at trial, where they agreed to Work Together to come at me, one from the government angle and mbia from the commercial ainge the they sued me the same month the s. E. C. Brought this original investigation. They lost that case, but they have certainly put me through a very difficult journey. Whats your goal next now that this is all clear, the lynn tilton that you want to be become, what does that look like i think im the same woman i was always been. I just want for focus on operating my companies i want to build great value. I want to reinnocence, i want to be able to sell them when theyre ready for that, and i want to win great contracts. I love being a operator, i love being a ceo. I love taking people on the journey. All my companies were bought when they were left for dead im devoted full time to give people the dignity of work and taking them on the journey to greatness. A i know you said it is not about you but at one time, you are one of the wealthiest selfmade woman. Do you still want that i hope i will turn my company into great values. That helps me finance these companies and always working with my own and invested side by side most of all, i have devoted by life to get the people the dignity of work and of the american men manufactures. You are talking about bringing american men here four or five years . No, 17 years ago. So many of them manufacturing and hundreds of thousands of jobs and i have always believe that with the dignity of work, there is less violence in the street and people are focused on families all right, on deck. It is hard to come off that interview, it is a powerful one. Thank you, lynn. Great talks. Mclovin. Well be right back. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Throughout my career, ive been fortunate enough to travel to many interesting places. Ive always wanted to create those experiences for others. With my advisors help along the way, its finally my turn to be the host. When you have the right financial advisor, life can be brilliant. Ameriprise livestreat the airport. E sport binge dvrd shows while painting your toes. 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Over lay the two charts, it is similar good guess for fast money at 5 00 p. M. Morgan, over you. Coming up the next hour, doubling a standard deduction. A 20 corporate rate, how realistic is the tax plan . What hurdles is it facing politically. American Airlines Stock losing altitude this year the ceo lays out his gross plan. A 2,000 pizza yes, 2 gs for a pizza pie, you got to stick around and e se it i ink well try it, too. The second hour of power begins on the other side of this break. Stay tunes stay tuned approaching medicare eligibility . You may think you can put off checking out your Medicare Options until youre sixtyfive, but now is a good time to get the ball rolling. Keep in mind, medicare only covers about eighty percent of part b medical costs. The rest is up to you. Thats where aarp Medicare Supplement insurance plans insured by Unitedhealthcare Insurance Company come in. 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Plus, nine out of ten plan members surveyed say they would recommend their plan to a friend. Remember, medicare doesnt cover everything. The rest is up to you. Call now, request your free decision guide and start gathering the information you need to help you keep rolling with confidence. Go long™. [he has a new business teaching lessons. Rodney wanted to know how his business was doing. So he got quickbooks. It organizes all his accounts, so he can see his bottom line. Ahhh. Thats a profit. Know where you stand instantly. Visit quickbooksdotcom. Welcome to second hour of power lunch. American airlines coming out of good season. We got an exclusive interview with the Ceo Doug Parker it is not the upper class, it is the upper crust. Well look at a 2,000 pizza thats right power lunch starts right now lets get a check on the mark right now. Stocks turning green the dow is shining for a second day of gain. It is higher right now by just about 51 points. S p 500 addingour and dnasdaq composite two healthcare leading today chip names, they are rallying and applying materials and micron and tech instruments at an all year high this is one issue that has an impact on you and your money ylan mui is joining us now of what is expected of a long tough fight. Brian, you are right. Now the really hard work begins here on capitol hill the criticism around this tax froerk framework. It repeals the estate tax and lower the top rate on high income household in his press conference today, House Speaker paul ryan says lawmakers are retaining the possibility of adding a top forced rate thatll hit those high income households to ensure the benefit of those packages do not go towards the rich. The purpose of our tax plan is to help the middle class and help get jobs created and keep businesses in america and help get money thats trapped over seas back in this country. Thats the purpose of this tax plan the fourth bracket rate, the goal of that is to make sure that the benefit on incomers attribute to the middle class. That change in the tax framework is a casualty of not getting the Republicans Health bill passed. You can start to see the trade offs that lawmakers making negotiations already well see a lot more when this is is all over back to you. Thank you very much ylan. Steve liesman is joining us now of t i want to focus on either losers or those who wins less. Lets take a look at the three areas. Over seas cash, looks like the winner is tech pharma. It is going to benefit firms mostly because they are avoiding taxes. What would happen is this money could come back in and boost dividend and buy backs if the company have money running over seas, you are going to see increase in dividends we are n by the way, there is over lapping stuff between these two. Some could benefit on the dividends and buy backs but they could lose it on deductions and potentially on the block and r d credit is likely to stay they argue that lowering the Corporate Tax may boost wages, not really conventional. There is a big debate of whether shareholders or workers paying the bulk of the tax. The Administration Site studying of 70 of Corporate Tax paid by workers more like the cbo and joint tax commissions, they think members of 25 or 30 whats the big overall impact here in willt create jobs or wages . So far economists have taken add minu ed stra administrations. Theyre not seeing the big growth increase and job creas increase brian really interesting look there. Steve liesman. Thanks for bringing it to us when the gop took the sweep last year, the narrative was passing nature legislation will be a breeze we know that line of thinking could not have been more wrong tricky lets bring in sarah fagan, she works for George W Bush during the tax cuts and no doubt giddy and enthusiastic today, sarah, lets start with you, i will ask you the same question, what are the odds this gets done . The odds are high it stretches to next year. But, the reason it has to get done why republicans cannot present themselves on a ballot next november dont get me wrong, tax reform is going to be hard and some way it is difficult than healthcare reform but if they dont get this done, it is going to be a very ugly november 2018 and every republican member of Congress Knows that. The republicans won in large part because they may have been frustrated by what democrats did. Things are going fairly well right now. What whats the urgency people solve problem and make the tax code cleaner and simpler and easier for people. The average americans need to hire an account. People are very frustrated with healthcare as pointed out this makes it difficult that we lost the Capitol Gains out of the tax bill, Capital Gains cut. So people want problems solved and this is stagnant Economic Growth, it is a big problem in this country grover, a big question mark is how are the tax cuts are paid for and as speaker brian this morning said that growth will pay for it in of itself. What in the plan, what are absolutely plans to making that growth happen . Your view . Sure. The big throw growth we compete with european country which average just over 20 and china at 25. We are at 35 we wonder why we are having trouble. Also taking the tax on S Corporations past roots, people run their businesses personal income tax theyre 30 millions Smaller Companies like that. Taking that rate down to 25 from what can be as high as 40 you make those two changes of the marginal tax rate on business income and half of business income is through S Corporations you got to do both and it is important that trump and the republicans are focusing on smaller business of entrepreneur entities after that, the full and immediate depreciation of all this investments so instead of depreciations of this is a five year temporary change of tax cuts i expect thatll be extended and permanent that the ten years is over allowing one time hit and bringing one or two trillion dollars back in the United States and in the future where companies over seas come back taxfree you make the money in france and whatever you got left, you can bring it back to the United States without penalties you do those things, you will have a tremendous econom growth of the First Six Months of next year the group that tripped up the original effort to get healthcare reform done they are committed to making this happen and they have been apart of the process going through this i dont see some of the challenges that we have with healthcare again, that is only missed by one cent though. How do you explain to some of the lower income americans that their tax rates are going to get bumped up from 10 to 12 th is that a tough sale to trumps constituents throughout the country . No, the 10 rate goes to zero you got four rates and we are increasing the number of people and the income thats at 0 then 12 comes it is not 10 up to 12. It is 10 down to 0 and 12 comes down so you go to 0, 12, 25 and 35. If you pay personal income tax, you will have a lower tax burden after this than before everyone has lower rates going in for starters, the zero rate goes up to a larger income level. I know thats what schumer says but hes wrong about that. 10 goes to zero and not up to 12 it is a good question a lot of times when you get in the throw of these fights, it is really the prs game the democrats are out telling people that if you are in the lowest brackets. Your taxes are going to go up yeah, at the same time, theyre saying this is about the rich those two narratives, mean democrats are likely, we are not likely to get democrats vote on this middle class taxes are at record lows. Thats what no one will tell you. It is not state and local. Here is the thing. Well tie together jobs and tax cuts all the time. There is 6. 1 million jobs in this country the most ever been we dont have a job problem. We have a workers problem we have not had real wage increases where someone would argue in a decade. Particularly bringing in this Small Businesses and people file under their personal income taxes who do half the hiring in this country will end up hiring more and theyll have more capital to invest in their business i file this way and i am waiting for this to make an investment to one of them there are many people making these calculations everybody in america is going to have an escort for the two years. Thank you both have very much you got it. Lets get down to bob pisani for a Stock Exchange check of the market we are at a closing high. Look transports are at a new high and russell 2,000 we got a great trade going on. The sectors are moving and materials have been Strong Energy has been great this month here industrials are strong as well theyre down a little bit today but lets not quivel today. Sherw sherwinwilliams cut their guides today here is my overall impression right now. Even though some companies were definitely impacted. The overall impact is on the modest side. I dont think well see huge downdrafts in the overall s p number numbers. You see southwest and sherwinwilliams are positive today. Keep an eye on that and well see what the Insurance Company has to say i dont think well see a big drop in the s p numbers. 25 10, we close there, thats an historic high. Thank you, bob. Watches those record highs again today. Here is whats coming up on power lunch. Yes, the internet gieant amazon is buying whole foods and making a deal with kohls well be joined by the ceo of American Airlines. And frank will tell us what a atnd0 pizza tastes like, all th a more, coming up on power lunch. You know who likes to be in control . This guy. Check it out selfappendectomy oh, thats really attached. Thats why i rent from national. Where i get the control to choose any car in the aisle i want, not some car they choose for me. Which makes me one smooth operator. Ah still a little tender. vo go national. Go like a pro. For tech advice. Dell Small Business advisor with one phone call, i get products that suit my needs and i get back to business. Welcome back to power lunch. With the holidays just around the corner, what can we expect around the consumer and will amazon threatens the rest of retails. Joining us bill, it is nice to have you here on power lunch. Thank you for joining us today sure, happy to do it. How are you . Great, great, we got a lot of holiday forecasts coming out. Now we are starting to see crack in the armor of brands like nike, what are you looking at . Is it going to be challenging to hit some of these forecasts . I dont think so, i think all indicators and a lot of things could change that well have a good Holiday Season of consumers bullish and numbers are strong tax bill could be one of them. That needs to get done and progress and all the political issues of north korea, that can change a lot retailers are set for a good strong holiday and consumers are pretty strong. I think there is a Good Opportunity for us to have one of the best christmas selling seasons that we had in a while as the tax plan is laid out right now. Are you in favor of it for retailers and say for consumers of retailers, how important is a bill like this passing on success on consumer sis side in the long run it is important in a couple of different ways addressing disparity and Corporate Income tax along with territorial is really important. This is neutral. And if we could figure out how to do that and at least early indications this bill would do that would allow by lowering the Corporate Tax rate and taxing from a territorial perspective rather than a worldwide perspective would allow Companies Making the best decisions based on investments opportunities and not the tax code and i think thats important. From a consumer perspective, it looks as if the individual rates will come down across the board and i will be at that pod communication of 10 to 12 and back to the zero with the deduction, obviously, communicating a little bit the more money in consumers pocket or the idea of more money will help them particularly in retail what is the typical family or house hhold income there the walmart consumer average Household Income is on the low or mid size of the lower 30 or 40,000 a year range it looks as if theyll have a substantial tax break with nearly the doubling of the standard and standard deductions that could be important for them as they start to think about how theyre going to buy and how theyre going to consume going forward. So bill, early on, you spoke a little bit about some of the Macro Economic pictures thats supportive of consumers radight now and their ability to buy are they buying off on amazon. The sales tax are falling like 20 and retail employment is falling by 8 while online sales have grown for samazon amazon have got a great Business Model and it is humming now. I did see that article i saw one this morning that said that after an initial uptake, the whole foods traffic have sort of gone back to where it was before amazon, you know, admitted that they cannot achieve their business objectives without brick and morter details and yet they think of the mo difficult segment and high end Fresh Produce and meat trying to enter. Amazon is going to be tough to deal with. In the near and medium term, how they digest their brick and morter business and how they deal with customers who still want to buy from brick and morter retailers and really want to have the Digital Integration experience is going to be really challenging. One other point and i think as long as the Investment Community continues to buy amazon on high growth relative lily low profitability. They continue to invest money. Eventually, it has to reverse, there has to be some sort of wreck balancing the equation and i think thats what amazon will struggle i still think there is a big opportunity for very, very good retailers. I just wonder if that reckoning will come. Exactly look, i said five years ago they were over valued. What do i know thank you very much bill, you know a lot and we appreciate you coming on power lunch. Thanks again bill simon. Incredible. Coming up the head of American Airlines join us to talk about competition hurricanes and a lot more. Plus, a 2,000 pizza sounds a lot like an economic peak, does it it is real robert frank got to eat it his review is next i count on my dell Small Business advisor for tech advice. With one phone call, i get products that suit my needs and i get back to business. If they knew just howers rich they were. Ed the average American Home value has increased 40,000 over the last 5 years. But many dont know you can access that money without refinancing or selling your home. With a home equity loan, you can pull cash out of your house for anything you need home improvement, college tuition, even finally getting out of credit card debt. Come to lendingtree. Com to shop and compare home equity loans right now. Because at lendingtree, when banks compete, you win. Hello verybody, i am sue herrera, here is cnbc update at this hour. Isis is reporting nearly a year of its leader. The move is designed to silence rumor of his death, leader albaghdadi. A deputy of the kiev council was knocked out. A paramedics arrived a a lt the scene, a broken nose and not a broken jaw quite an exclusive club, three former president s, barack obama and george bush and bill clinton attending todays president s cup in innnew jersey right down the way for us what a selfie exactly thank you, sue herrera. A 2,000 pizza thats one of the things you are going to see on the new season of secret life. Robert frank tasted that pizza and how was it it was really good [ laughter ] for 2,000. Did you eat it in a lamborghini. Lets show everybody. You can pull up the ultimate upper crust. The financial district has a pizza that costs 2,000 per pie. It is about 250 per slice and all ingredients with flow in fresh over seas. The dough is made fresh from italy a it and sprinkles with gold flecks cheese from england it is super rich pepperoni. The fanciest of all is this, edible 24 carat gold tape from this one ounce can go over 100 the final touch, rose petals. It looks dress, right it does i expect to taste it and say disgusting, so, so good. You tasted a lot expensive of things i have tasted a 500 burger and 5,000 grilled cheese. This pizza, now, would i pay 2,000 probably not it was really good has anyone ordered it was it one of those item items where it is on the menu to get attention somebody was ordering it that day that we were also there. They did not mind you taking a bite when i post it on twitter, we had several people say we ordered it and we did not like it that much so we just heard yesterday from people who purchased it and either liked it or did not like it this thing is selling the gold on it . Everyone should have their usrda gold i told brian that i would eat gold for lunch and he did not believe me is it crunchy it is thin and you dont taste it have you drank gold slaughter from college no new season of secret life premiers tonight we look forward to that. Thank you lets go to Jackie Deangelis tat cnbcs commodity desk. On the face of an overall stronger dollar and some factors in the marketplace right now u. S. Production, climbing near peak levels and opec maybe out of bullets the luhurricane e if he caffectn to wear off. We could go back to 52 and slightly higher from there a lot of the most recent move could be shortcomings. If those shorts come back from the market, all of that could be off thank you very much American Airlines dos doug parr he told us, i dont think he will ever lose money again, how is he going to make that happen . Power lunch will be right back my business was going nowhere. So i built this kickin new website with godaddy. Building a website in under an hour is easy 68 of people. Who have built their website using gocentral, did it in. Under an hour, and you can too. Type in your business or idea. Pick your favourite design. Personalize it with beautiful images. And. Youre done and now business is booming. Harriet, its a double stitch not a cross stitch build a better website in under an hour. Free to try. No credit card required. Gocentral from godaddy. American airlines recorded their margins. With us now phil llebeau and dou parker you dont think you will ever lose money again some look at that thinks it is a bullish statement. We have been producing profits and averaging 5 million a yahear. That feels like the new reality. Well talk about your metrics and i want to talk about puerto rico people see this video of people stranded and i hear this question from people, why americans and other rlines running flights 24 hours a day and get people out of the airport we would like to do more and we are asking to do more our team is phenomenal we have volunteers and a lot of our team members there the problem is the infrastructure thats currently in place we are allowed to fly three flights a day up until now seven after that it is starting to ramp up. Infrastructure does not exist. The infrastructure has to be there to unload the aircraft all that stuff still exists and now it is just not there today we like everyone else are clambering to get in this as fast as we can and i think it is coming again, slower and american is doing everything we possibly can. Getting back to the reason why we are here today, the analysts update that you provided a couple of hours ago you guys are a 40 stock right now and you said we should be at a 70 stock. Make the case where investors and analysts may not be giving you the credit you believe you should be getting. You are still focused on the world and the world is changed dramatically, permanently for the Airline Business and again,esults for the last few years proved that. Some people looking at the last few years, well, you guys made money in the past and there is money again without taking the time and understanding again we now have a rational Business Model. Airlines and american and united know exactly who we are. Very intense competition and also one that we can prevent what we are looking for. You pointed out that you guys believe that there is cost cutting opportunities out in the next three or four years your premium cabinet is a good example of this. Can you capture all of that potential . Of course american has been under for a while. We are bringing in new airplanes to replaces all aircrafts and it matters to premium travelers the products that we have in place and full wifi and products that flies trans con is as good as anyone and it is going to be better yet again and a couplef years. Quickly, you are scratching the service when it comes to services and the revenue that you can generate from that people listen from that and that means higher bad fees. Whats your counter to that, we think fees can be grown in waiving bag fees by know mean well continue to change the structure of whats being charged we are mostly talking about differentiating the products there are certain products that customers so for example, based on the economy today, it is a product that allows us to match the fairs that are o on it does not have all the same amenities like the ability to change your seats and the ability to earn or the ability to bring on. Some customers are not looking for that level and to say that much money and prefer to pay more of different products thats what i am talking about. It is more differentiations and allowing people of the choice. Doug parker, chairman and ceo of American Airlines once again, no cubs rings, theyre in the playoffs now. You need to wear it. It sounds great for housing, right . What this proposal really means for retors and comi up. Rs like you. Duncan just protected his family with a 500,000 Life Insurance policy. How much do you think it cost him . 100 a month . 75 . 50 . Actually, duncan got his 500,000 for under 28 a month. Less than 1 a day his secret . Selectquote. In just minutes a selectquote agent will comparison shop nearly a dozen highly rated Life Insurance companies, and give you a choice of your five best rates. Duncans wife cassie got a 750,000 policy for under 21 per month. Give your family the security it needs, at a price you can afford. Since 1985, selectquote has saved over a million families millions of dollars on Life Insurance. I cant wait for her to have that College Experience that i had. The classes, the friends, the independence. And since we planned for it, that student debt is the one experience, im glad shell miss when you have the right financial advisor, life can be brilliant. Ameriprise oh hey john, im connecting our brains so we can share our amazing trading knowledge. Thats a great idea, but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders . I know. Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at td ameritrade. The mortgage deductions appears to be a few that sli survives the tax plans some realtors are getting nervous of other parts of the tax reform plan. Diana olick is joining us. Without clear details on whether or not the mortgage deductions changing in some way or how Many Americans taking a standard detuduction or verses itemized the housing markets have stalled those exact words of the National Association of reali realtors realtors are now downgrading their forecast for the entire year putting sale in the negative of 2015 the sale pays now is at the lowest in 20 months. Whats the problem very short supply leading to over heated home prices. Listing were down 10 overall in august and 20 for listing price under 200,000 the market is totally mix matched with buyer and especially millennials Home Builders are not producing at a historical level. Theymelissa. All right, diana, thank you diana olick. Joining me now to disjercuss is jerry howard it is great to have you onset thank you for having me from the top line, look at tax cuts for middle americans and when you put more money in the pockets of average americans, the economy expand. Thatst thats a good thing. Particularly recognizing the importance of Small Businesses of the United States and economy and pass through entities. And then thirdly the action stated commitment to the housing sector as a key to an economic and social fabric of our country makes it an intriguing plan to support and working towards a complete build up. In terms of this, i am asking for a friend named brian sullivan, the tax deduction, highwho will that Impact Housing crisis where thats very important deductions thats an issue that remains to be worked out it is something that we have conversations with the ministration and the ways and means committee. I think it is something that theyll continue to work on. We want to be at the table and obviously our concern is deductibility of state and local property taxes thats something thats still on the table and well work for here everybody in new jersey, you would have agreed with that statement. How important our tax is when it come to building a whole. Lower Corporate Taxes would help home builder big ones. I think the lower the cost of doing business, the more you can create a situation that leads to Affordable Housing thats one of the reasons why we have to look at this wholiis wholistically. The women and men thatmakes up the Home Building sectors are Business People as well. We have to look at the wholistic treatment. How many Home Builders in the Small Business category . The overwhelming number and fewer than three houses a year and having fewer than ten. So far, yes yes what about the hurricane impacted and whats going on with the rebuilding in florida and texas and in the regions they were headed where are we now and what are your fort going rward . Well, well see for new construction, we have seen some dips in short terms because the florida market and texas market, two of our hottest markets thats going to impact us negatively and obviously then when reconstruction starts, well see huge spike the real issue is labor. We are in the labor shortage of our industry beforehand and now with the increase demand, for example, over 100,000 unit in houston were damaged and every home in the florida k, keys we,e damaged. Where are we going to get the labor . Thats whe thats where i was going to go next. We talked about crime and do you have workers we have a great training program, we have been working with governors lately because federal funding was dried up illinois our Program Changed 150 prisoners. Sorry, we got to go to gary cohn right now whos speaking tax reform and cutting tax in the United States i think you know where we are in the process. The group of six have been working really well together we are now in the hands of congress and we want to go through a normal regular process both in the senate and house, we are working well with both tax drafting committees and the committees will continue to work and they are working really well and really quickly we are trying to drive tax reform as quickly as we can. I am not going to take you through what we have talked about before the question that we get asked a lot so i will say it right now we have to make based assumptions right now on where well end up with the bracket. Based on our assumptions, a typical family earning 200,000 of two children thats using the standard deduction, continue to use the standard deduction, they can expect a tax cut of about 1,000 thats where were headed. Thats where were going to continue to be and with that, i think ill open it up to questions and see whats on your mind. Go ahead. Gary, the big criticism, some criticisms, its a giveaway to the rich, that the one criticism that seems to be relevant for your home state, connecticut, california, other states, is by eliminating the state and local deduction, there are certain people who will suffer double taxation these are obviously itemizers. Is sthat is that a hard and fast red line with you or willing to give that up in congressional negotiations our plan is based on lowering rates, and expanding the base. Its very simple if you think of what were doing. You expand the base by getting rid of the loopholes, the loopholes the wealthy taxpayers have used to pay tax on less of their income, so we have designed a plan where youre going to pay a lower rate but going to pay it or more of your income, basic core premise of our plan were committed to it and sticking to it. Criticism is there are people in the middle income for whom the tax cut is supposed to be beneficial because they itemize, you might get hit by that. So just to remind everyone i here, 25 of American Families today itemize, thats it, 75 of American Families do not itemize. When youre talking about itemizing, youre talking about 25 of the population. We also have many things were doing in the tax plan to help out American Families. Were lowering tax rates, going from seven rates to three rates. Were expanding the zero rate. Up to 24,000 for that family. First 2400 of income, they will pay zero on. Were lowering the 15 rate down to 12 the next rate will be 12 . Were doing things to help that family were expanding the parameters for childcare greatly. Were really going to move the upper bound to whos eligible for childcare up to a substantial entire income level so that family may be eligible for more and more credits. You have to look at this plan in its entirety i one thing i would beg you all to do, dont look at any one piece. Look at the plan in its entirety, thats how were looking at tax reform, were looking at it in its entirety. Yeah follow up on what john was asking, the standardized deduction versus itemized, there are people who think that if you dissuade people from itemizing that youre going to suppress the realstate market, that people wont be intested in buying homes because they wont need to use itemized deductions. Can you address first of all, were protecting the morning interest deduction, second of all, look, the Home Builders today came out in favor of our tax plan the number one reason why people buy homes is theyre excited and optimistic about the economy they have a job today, they feel confident theyre going to have a job tomorrow and theyre kiir are going to get a job, spouse has a job, feels like theres upward wage pressure, they feel good about the economy they go out and buy home weve not been in that situation in america for the last decade we have to get america back to a place where people feel excited and exuberant about the economy, theyll go out and spend money, buy homes. People dont buy homes because of the mortgage deduction. Again, 75 of families dont use itemized deductions. Yeah how are you going to ensure wealthy taxpayers dont abuse the lower rate so its a great question. We have spent enormous amount of time on the antiabuse language. The last thing we want to see is wealthy individuals, or wealthy groups or families, move their tax rate down from the 35 rate, to the 25 rate. We are spending time on that, the tax writers at both the house and the senate are acutely be seeg language as we deliver more of the details. Today, though what the specific is, were acutely aware of that. Guys like myself should not be allowed to fit their assets into a partnership and reduce our Tax Liability by 10 yeah gary, just two things about one thing you said this morning, something the president said yesterday, you said that you couldnt guarantee necessarily that no middle class taxpayers would actually pay more taxes under this plan and because of the details you were talking about before, that is a real possibility. Some of the calculations are that some lower income people could see a very small cut of a few dollars or not more than that so, is it a red line for you and for the president that all middle class taxpayers see a cut under this plan . Secondly, the president said yesterday that this tax cut would not help him, in fact, he said in indiana that it would be bad for him. Based on what we know, what little that we know about his finances, you get a big cut on the aa. N. T. , save something lik 31 million. On passthrough income, hed save 16. 5 million. Hed obviously save a lot not paying the estate tax, his heirs would. So how can you say this is not a plan to help him i think what the American People are concerned about is their financial position i think what theyre concerned about is when they go to work every week, they get their paycheck at the end of the week, how much goes in their pocket versus how much goeso th government, how much do they get to spend versus how much do they send to the government if we allow a family to keep another 1 sthourks ,000 of the what does that mean . They can renovate their kitchen, buy a new car, take a Family Vacation they can increase their lifestyle. Thats what our tax plan is to do our tax plan is aimed to return more income back to hardworking americans. Thats what were trying to do here gary speaking of passthroughs and the president saying that this tax plan wouldnt benefit him, dont you think it would be a good idea if the president approved that by releasing his tax returns . Like i said, what were trying to do here, and what were all working on the white house, is to increase the lifestyle of american citizens our hardworking citizens that get up every morning and work as hard as any people in the world, to try and keep more of their hardearned income thats what were all about thats what our tax plan is about. Our tax plan is trying to get the economy, get the growth rate back to a normalized rate above 3 yes, we just had a quarter of 3. 1 gdp people didnt think we could get to 3. 1 gdp for a while. Were at 3. 1 . Can we go higher 1 of gdp means 3 trillion. It more than pays for a tax cut. Thats what were trying to do with our tax plan. Yes . Gary, if you cant guarantee that all middle class americans wont see, some middle class americans wont see their taxes go up, does that contradict the ntral promise of this plan to help all middle class amerans . Is. Our tax plan is aimed at making sure we give middle class americans a tax cut. We are going to give middle class americans a tax cut. That is what were spending all of our time on doing and we got lots of tools at our di dispose l all of them will see a tax cut . As i said this morning, ill say it again, i could read my statement from this morning, i liked it so much this morning, i could say it to you again, i cannot guarantee that. You can find me someone in the country that their taxes may not go down. Remember, we have 50 states, we have counties, we have cities, long term Capital Gains, short term Capital Gains, all different kinds of structures in the tax code i guarantee you, i guarantee you you can find someone in the country, maybe one person who their taxes wont go down. Can you talk us through the timeline of how you think the tax writing committees will get through this and what confidence do you have given whats happened so far this year on capitol hill that they will actually get this done and secondly, why did you decide to stay at the white house in the wake of charlottesville . So, im very confident that the house and the senate are working as quickly as they can if you look at chairman brady right now, and what hes doing in the house ways means committee, they are working, they came in on sunday to start working on the tax plan, they u know, chairman brady has said they will get through the tax plan as quickly as they can. We would hope that we get through the house in october we would hope to be in the senate in november wed hope to have bill done by this year. Why am i here . Im here just for this reason. Think about the opportunity that im involved in with the President Trump, being able to rewrite the tax code something that hasnt been done for 31 years the amount of impact that we can have on the u. S. Economy and u. S. Citizens in changing the forward outlook of the United States, this is a once in a lifetime opportunity and i would never miss this. Gary, one follow on that, then my question, does that mean when youre done with tax reform you will no longer be at the white house . Did you awe p many more once in a lifetime opportunities in the white house. Quoowed love to hear what yu have to say. On the child what ivanka trump campaigned on. I know its still being written. What is the goal will it be refundable . I think we said in our outline yesterday, you read it, the existing childcare credit is refundable and will stay refundab refundable the additional money put into the credit will be nonrefundable. We want to encourage people to work, we want to have people have taxable income to take the credit against the size of it were still working out, as that is a range in mind we have a range in mind, yes. re continuing to work on that range. Again, we are working on delivering a large middle income tax cut to american workers, one that they rightfully deserve let me go back to the back of the room eamon . Thanks. Responsible budget said the plan will add 2. 2 trillion to the deficits are they wrong we think theyre wrong, but we think theyre wrong because they the way they score but lets not argue if theyre right or wrong, lets not argue that we firmly believe that this tax plan will have a dramatic impact on Economic Growth we know that 1 change in gdp will add 3 trillion back. So if theyre right, were only going to pay down 800 billion of the deficit ill live with 800 billion paydown. Thank you, gary, appreciate the opportunity. On the corporate side, your critics say on the repatriation of overseas assets that history would show that companies dont always use theet