Them simpler for people like my father, he built trucks in a line, they know what they make and keep more in the pocket. They can file their taxes on a three fiveby seven card. We get back to that, that is a simple and more fair tax plan. Host when it comes to tax rates , they come into the conversation, what are republicans proposing on capitol hill and what would the president like to see and where is the middle . Guest i do not know if there is a difference, the house, senate, leaders in the house and senate and white house have been meeting for quite some time. Intensively since march. The plan will be announced tomorrow and the president will speak on it. Jointly, the house, senate, president have come to a consensus and the committee has to build the details but we will have broader strokes on tax reform tomorrow. Host what rates would you like to see . Guest i do not like to pick them out of a hat and say these are the ones. You have to ideally reduce rates for people who go to work everyday and make a paycheck and all the taxes out of quickly. We have to reduce taxes for entrepreneurs so they can keep more of their profits in the pocket and build their business. I will not participate in the rumor mill and tomorrow we will see more detail. A reduction inet rates and we will simplify the tax code tax loopholes, the special deductions. Everyone pays their fair share. Host that means you cut federal revenue, what do you do to offset those . Guest if you leave the tax loopholes and deductions the same, you can reduce your rates, if you broaden your base for taxes. That is part of the discussion. I do not see making the deficit worse despite the rumors and human cry about all the bad things that will happen. Unfortunately, you have a number of senders, democratic senators, who say if it does anything like this, we will vote against it before they see the plan. Contribute to a plan. My district send me to find a solution and make progress. Not build walls and say we will not do this, that is no way to get to an outcome. People talk about compromise and that means you have to be willing to compromise. I am frustrated in the senate with the lack of willingness to come up with a plan. I spent years working with my leadership team. I taught my teenage kids that no decision is a decision, they wont goes on around you while you try to pretend it is not happening. I would like to run that same class in the senate. America expects us to decide. , for 2027488000 democrats. 2027488001, for republicans. 2027488002, for independents. Is 74,000 tax code pages and you have to be a wizard to figure it out. 90 of america use a program or accountant to file their taxes because they cannot do it with confidence. That there are special deals throughout the tax there for everybody to deal with what they think are special conditions. Engine change over time. Things change over time. If you make money in some manner, you pay taxes. We have to deal with a significant amount, the numbers are in the trillions, offshore, they essentially get double taxed and we have to we would be better off bringing the money on shore and using the money, using the money to build a business. We have to deal with that issue. Host what about the mortgage interest of action . Deduction interested action. Deduction. Guest i do not have feeling with people with huge mortgages should get a massive deduction for their interest and there should be a cap. Only a couple of reductions. Deductions my guess is that we will keep a charitable deduction. We want people to give to charities. That is how they support things they think are important rather than the government deciding. And we will take a cut of it first and then decide what get to do with your money. Host what would you do with the estate tax . Guest i call it a death tax. A lot of small businesses, farmers in my community are struggling to find a way to keep the business in the family when they. Die. They have already paid taxes on the value of the business and you want to tax them again. Why . I have a problem with that mentality. You have to explain the rationale, other than gouging people for more money. Guest carl in houston, texas, the first call host carl in houston, texas, the first call with Paul Mitchell of michigan. You republicans keep breaks,about giving tax but isnt taxes what keeps this government afloat . You cannot go to the water faucet in the state of michigan and get a fairly decent glass of water. Schools are failing. Health care is failing. Goings it that you will to come up with another plan, other than tax reductions for the very rich . When are you going to do something for the people who put you in office . This is tiring. America is hurting and all you is want a bigger tax break for the rich. I am a working man and you said you need to keep money in your fathers pockets. After you give all these tax breaks, i never see anything. Americans need to hear something else. Host lets let our guest response. Guest the tax plan as i understand it and i talk it deals with the working class tax reduction for them and a simpler tax plan. This fight the rhetoric and all the despite the rhetoric, it is not about giving tax breaks to the wealthy. What we need to do is see what it plan is tomorrow and how goes forward before we decide that all it is is a giveaway to the special interest and wealthy. It will do what you are saying. Let me clarify, i live in michigan, i draw water every day and michigan has the cleanest water in the country. Nt ande a problem in fli we are on the way to solving it but i would disagree that we do not have clean water in michigan. Host hello from michigan on the democrat line. Caller you should stop giving deductions for all of this equipment writeoffs and a corporation writeoffs. I do not think that the republicans are ever going to get a simpler tax because that simply means less people will pay tax. You have already decided, if it is simplified, it will be less money for the government and the government has a 20 trillion debt that george bush created that we do not talk about. Guest how is it that you get equipmento invest in come if you say, that investment , you will pay tax on that as if you made a profit . Andwill buy the equipment also pay taxes on the money you put up, how you Grow Business . It is not some special reduction. If they make a profit, they should pay tax but if they are reinvesting in the business, you will stunt business growth. I think you are misunderstanding what you are we are trying to do in this plan. I would suggest you go back and look at history, the majority of the deficit that was created we are now struggling with, the National Debt was created by the obama administration. We could talk about why but it was not created by president bush. You need to check your history. Caller i find it interesting that when obama entered office, i googled the National Debt and it stated that it was created by george bush because he started out with 3. 5 trillion and ended with a bankrupt nation of 20 trillion. We are back to 20 trillion debt after we were down to 19 trillion and you can see that it is going up again. The republicans have never done anything. They spend the money and the democrats tax and create more money. Evolution ofsting history and you need to check your google sources. Host georgia, independent line, hello, david. Caller how are you doing . Ien in all over michigan, drove a truck and hauled looking equipment. On the tax issue, i want to go back in history for you. Conservatives have, for the longest, over 230 years, tripped up our country. They have created divisions after division after division. You are doing it today. Conservatives. When it comes to taxes, i trust you about as much as i trust a porcupine not to stick me. Gingrichagan and newt created this offshore issue and all the other issues. The issue in health care with the health market. You do not do nothing but make a mess. Get out of congress. Is mcconnell guest i am not sure that was an independent. We will move on. Host the wall street journal highlights in their editorial, michigan comeback story talking about taxes in the state. Rick snyders effort to replace the business tax with a 6 Corporate Tax and trim individual rates. They finance the tax cut by eliminating most handouts and income tax individual preferences. Credits for children, automobile donations, College Tuition work gotten rid of. Is there something that could be applied on the federal level . They reducenge so the rates and in michigan we made a commitment to reduce income tax rates to 3. 9 over a decade ago. Still working on doing that. It is an example of, if you make reforms in the system, you can generate growth and keep revenues in a good shape. Our state, the constitution requires us to have a balanced budget and we increase the Rainy Day Fund as a backup. We made progress. Compared to a decade ago, in much better shape. We have a new governor. We will see after the election next year. We make taxes simple and allow businesses to grow and eliminate special grows deals. Get governments hand out of the right hand right thing to do, government is a poor investor. Rate . Lower the it works better than the plan previously in place. Important things and he will our intellectual property and capital and if you make it a great disadvantage to tax those, the state or country, people move it and can do it with a touch of a button. Understand that is the current reality and it should in fact the tax code impact tax code so we do not push business away offshore. Host rochester, new york, independent line, carol. Tax, i about the estate hear handwringing about it in washington but according to what , 153d from the usda figure farms out of 38,000 who were onlyble for an estate tax, 153 fit into where they had to pay anything. That is what,. 4 . Tax,ems like, the estate they put it as helping the small farmer, it only helps a few people. Like, money is supposed to be they worry about not taxing but if you work one hour overtime, the government is there to take as much as they can. I would like to hear your comments. Guest it is not just farmers, it is Hardware Store community, the majority of the farmers in my district for family farms. You not know where the data have come from but part is dependent on how many farmers die. The majority of the farmers in my district and small districts businesses in my district will be affected by the estate tax. It is unearned income, with all due respect, all of these people work hard to make what they had and build a business they could pass on to the family. They were taxed on that as they made money. As they made a profit, they were taxed. The idea that this is unearned, tell them that, the hours they spent. I ran my business and who do you call in sick to . Two yourself . That run businesses and start businesses and contribute massively to our economy, they could not have a disincentive when they died. It is not the core issue with an tax reform, the core issue is e the tax code simpler and my oldest son is a Police Officer in the community, they figure out how many times of overtime they have to work before they change tax records. When you have working people that make a salary and get hammered because the tax code, we need to fix that and that is what this plan will do. Host west virginia, james, republican line. You are next. Go ahead, please. Caller hello . Host you are on, go ahead. Caller wanting to talk about the tax cuts. What donald trump is trying to do. People, i qualified i only get 880 per month and when the governor got in down here, the first thing he did was raise taxes. By the time we pay taxes on cars and licenses, we do not have money to live on. Thing whatis a good donald trump is trying to do about getting taxes lowered down. Host thank you. Guest i agree, it is a good thing. We need people where they are confident the taxes when they file them, they can file them themselves and every pay period they take home more, rather than waiting for a refund at the end of the year. Maryland, republican line, miguel. Caller how are you . Trump. For blaming obama for that [indiscernible] taxes, i was about how are you going to [indiscernible] say, because of the loopholes, no, the Company Already paying the money. Why dont you try to help people . You are trying to make the Companies Pay the real tax rate and can then talk about tax reduction. Guest i think the first effort in tax reform is dealing with family tax returns and reduces their taxes and make them simpler. Rather than do it in pieces. It has been 31 years since we had tax reform. , tell people in the district we have a hall of fame running back still in college last time we dealt with tax reform. ,he reality is, when we do this we need to do it in one big package, otherwise we get be 30 something years before we do it again. It is a tough issue and takes a lot of effort and coordination to get people to work together. I do not agree to do it in pieces, we need to get it through with one package, the house will work on it in october and the plan is that the senate will deal with it in november. We need to get tax reform done this year so it and fax 20 so it impacts 2018. We need 3 , corporate think gross 4 gross. Run if theontinue to current growth rate. Host the expectations when it comes to lowering the Corporate Tax rate . Guest the Corporate Tax rate will be somewhere in the mid20s. It is just an estimate until we get numbers. There will be reduction. Any rates across the board. Three or four tax brackets among wage earners and we will encourage investment by corporations by allowing them to write off investment, rather than this crazy depreciation schedule. A variety of options to encourage investment in capital and growing your business. So we can create jobs. Host current or protectorate, would you agree most corporations do not pay that rate through their Accounting Systems . Guest i would say that a lot of corporations do not pay the published marginal rate. Because they use the tax code. Theye talk about as it have done something tricky and are trying to defraud somebody. The tax notice what it says it is, why would you not use it the tax code is what it says, why would you not use it . They are trying to maximize the company and they put a fair amount of resources into good tax accountant. That is the way the system works. Host virginia, bob is next. Caller this is what i think they need to do, put in the tax bonds atue taxexempt 5 for corporations with money overseas. That money would go directly to the states for highway construction. That way you do not have to spend any federal money and you can use the money the corporations have and, at 4 or put it to the federal highway department, let it go straight to the states so they can go immediately into projects they have on the drawing board. Thank you, sir. Guest we have lost him but the question, talking about money to corporations have that go into the bonds, who would pay interest . An interesting concept to have it go directly to the state. For the national highway system and a variety of other things, we have to invest in those and willing to take transportation infrastructure effort after we finish tax reform. That is the plan in the schedule and we will see what happens as we move forward. Vice chair of the transportation infrastructure aviation subcommittee, you have legislation to look at air traffic controlling systems and how they operate. What is the Current System and what would you like to see changed . Guest the Current System depends on antiquated technology. We have aircraft control facilities, if they were human beings, available for medicare, they are that old. By using Satellite Technology and gps technology, we can get better routing of aircraft and fewer delays, less expensive operations, more aircraft in the air. Air travel is a significant part in our economy and we use technology shortly developed after world war ii. We are working on upgrading it and we spent we had a hearing that i asked the faa folks, what do we need to get airtraffic control of a done . They said 30 billion and they hope to have it done in 10 years but hope is not a plan. We need to take it outside of government. The reason why, currently in terms of appropriations and budget, you cannot make a major Infrastructure Investment are waiting to figure out what your budget will be next year or you have to you have to make longterm commitments. With the appropriations procedure, they cannot do that but private and nonprofit can make those investments. Talking about revenue not going to the government, the airlines and air cargo folks who pay airtraffic control these going to the entity to make the investment and would not be going through the government where you have to figure out who should get the money. That is an important distinction to help the system. Host we had a critic of that your itaying that is a National Security issue letting the Airlines Call the shots . Guest we have agreed to disagree, we have talked a lot about it. General mattis said it is not a National Security threat. If i have a way in, i will take general mattis. He seems to be well versed. They supported as well as the pentagon. Support it, as well as the pentagon. It is not a giveaway to their lines. The airlines. Charter folks have a seat, it is a balanced board and i do not understand what the human cry is, i disagree strongly with the perspective that they are using i think they are using this issue to motivate their base and raise money, it does not get the policy done. Host authorization for the federal aviation administration, where are we . Guest we will do an extension for six months and an example of why we need to pass faa reauthorization. We will do a sixmonth extension to reauthorize. We keep doing these bits and pieces things and like with tax reform, sometimes they do not get done by running it through the house across the street and we need allow them to invest. How what would it cost to get the Tennessee Valley electrified if we try to do it through congress and the bureaucracy . It is a nonprofit that worked well there develop to develop electricity and rivers in the Tennessee Valley. I am not sure government could have pulled that off. If you run it through the current budgeting process. For sharingk you this great information. My eyes, in terms of the taxes, have been opened. My eyes have opened over the last couple of months because i took a Real Estate Investing course and it taught me a lot about the taxes and how it works, in terms of an employee, which i am right now. Somebody versus that somebody who has their own businesses or a real estate investor. Said,s back to what you it is tax codes set up for the wealthy. I am still learning but tax codes set up for the people who are wealthy or with their own business. Payingld they go against those taxes tax codes . Areed to say, the wealthy doing wrong by not paying this amount of taxes or they are doing something that was a crime. When i learned and i took that course, it opened up my eyes, they are not doing a crime, they just go according to the code. Guest how do you like the tax code that course course . Guest there are so many issues and terms of what you can write off, a top a complicated tax code for real estate investors. If you are doing it yourself, best wishes but Pay Attention and maybe have a professional help you with it. Host if the senate effort on repealing and replacing the Affordable Care act does not pass, what you think is the best way forward for the house and the senate on health care . Guest we cannot ignore this problem. Hoping it goes away is not a way to manage. Countyith the administrator and one of my districts and their insurance rates went up 18 this year, 17 the previous zero and five years, if the rates continued to grow up like this, they will not be able to pay their Health Insurance for employees and their taxes will not cover. We are on a trajectory that, not only will health care stay up but we will bankrupt local governments by doing this. We need to fix the problem. The house passed the American Health care act and the senate did not like it, they have not pass their bill. All they needed to do is send a skinny repeal to conference and it wouldve been a bipartisan effort to see what we could do with health care but that republicans did not vote it and not one democrat said we need to Fix Health Care in america. Not a way to govern. Host Paul Mitchell, thank you for your time. Our bus is on the road, in annapolis maryland as part of the 50 capitals tour. After the break, we will talk to the maryland Lieutenant GovernorBoyd Rutherford and later, talks between the u. S. , canada, and mexico over nafta. Marcy kaptur of ohio talked about it and the potential impacts on u. S. Manufacturing. Cspan, where history and full daily. In 1979, cspan was created as a Public Service by americas Cable Television companies and is brought to you today by your cable or satellite provider. The studentcam video competition in full swing. The theme this year is the constitution and you. We are asking students to choose a provision of the u. S. Constitution and create a video illustrating why it is important. It is open to all middle school and high school students. Students can work alone or in a group of three and make a 57 minute documentary and include cspan programming and score opposing opinions. 100 thousand dollars will be awarded in cash prizes and the grand prize of 5,000 will go to the students or team with the best overall entry. The deadline is january 18, 2018. More information, go to our website, studentcam. Org. Washester arthur consistently ranked among the lesserknown president s. The only thing most people remember about him is his very distinctive facial hair, his mutton chop sideburns. Sunday night, Scott Greenberger on his book the unexpected president about the life and political career of chester a arthur. He recognized he was not qualified for the job, he got on the ticket by accident. He was surprised to be there and never imagined he would be president of the united states. All of a sudden, he is on the th