Transcripts For FBC Cavuto On Business 20240622

The middle class has been crushed with taxes, how much they have to spend just to file their taxes, 75,000 pages of tax code. Somethings got to be done. There are people in this country that work for the month of july just to pay their first dollar. More money in peoples pockets means more savings, more spendings and a better economy. Corporations are not competitive because of how much they pay in taxes. We have the second highest Corporate Tax rate in the world. 39. 1 . Thats where the money is. If youre going to do anything, cut Corporate Taxes. There will be more jobs, better paying jobs. We have fewer people working in fulltime jobs today than we did at the high point before the recession. Thats job one. I love that, too, because its diametrically opposed, opposite of what Hillary Clinton is saying, we need to snatch the money from the corporate balance sheet, tax them more, get their income and redistribute it. But when i listen to donald trump, who, once again, i really like and admire as a businessman, and i listen to us, im wondering why we are being more specific than he is. There is no plan. Especially for the middle class. Thats not a plan. A plan is what paul ryan says, a very detailed plan, closing loopholes and bringing down rates and things of that nature. This is not a plan. Thats one of the problems with donalds policy, that you can kind of drive a mack truck through well, we should say that donald trump is meeting with a hole lot of people. He promises within a couple weeks hell narrow that down. He will narrow that down. I think all candidates ultima ultimately are going to come out with something more concrete. Ben stein, the broader strokes are lower taxes. Thats the theme. It might be a winning theme. It might be a winning theme politically although hes already doing incredibly well politically, but we have never seen any clear correlation of lower taxes with higher employment or higher corporate profits. Corporate profits are extremely good, the economy is extremely strong, in many parts of the country theres a labor shortage. Im not quite sure what this would accomplish except adding to the fetd ral deficit, which is already cruelly and dangerously large. Unless theres a specific in here that we dont know about that would have some magical effect, i dont see it. I cant see where the benefit of it comes in except as a political bribe. I dont know, ben. I know you go to walmart a lot. Next time youre there ask some of the people if their wages are down and if they would like lower taxes. Theyre not paying taxes. Lets bring in adam on this. We have some kinship going on out there. I actually am going to amplify things that ben and charlie said. First of all, you have to look at the macro numbers. Unemployment is lower than its been in years and were in a multiyear expansion. These are good things. The slowest expansion in 75 years. No argument, but to charlies point, trump doesnt have a policy here. This is one of most what about lower taxes helping the economy . Do you disagrier or agree with ben . I disagree in the sense that president obama has focused his tax increases on higher wage earners, on the richest people in society. But he thinks a family of four making 200,000 a year on long island is rolling in the dough. Back to gary for a moment. Adam is talking about the unemployment rate. We have to put that in perspective when the participation late raitt is at a low. You add people back for the job market, its double digits. Lets be clear about that, gary. First off, there was this dude named Ronald Reagan that took 26 tax rates down to a few and the high tax rate from 78 down to 28 and unlocked and unleashed the greatness of this country. Amen and amen. Let me finish. This country is being crushed by taxes, mandates, regulations, fines, you namt, and it has fed a bloated government. The last year of bill clintons government they expect 1. 8 trillion. Were going to do almost 4 trillion this year. Thats coming out of the economy and killing us. The problem with saying lits lower taxes it is going to hurt the deficit. Heres the thing. You have to do it in the context of tax reform. You have to understand the notion of closing loopholes. Im for a flatter tax. I think this economy is not doing as well as it should do, but if you sit there and say lets lower taxes, i think youll make a bad situation worse. We need tax reform. This is my problem with donald. He thinks its easy. Sit there and snap your finger, take a couple rates down, give middle class a tax break and everything will be hunkydory. Its not. One at a time, guys. Go ahead, gary. Finish. Hes not saying anything particularly controversial. Tax reform is something a lot of people would like. Lowering kormt taxes while, you know,ing to something with repatriating foreign earnings. These are subs weve been discussing for years. We got nowhere with him. If theyre no big deal, why. In its schismest form its 2 measly growth right now goes up to 4 , the deficits will come down and government will have plenty to spend. Gary, youre not going to get that just by saying lets do a middleclass tax cut. You need tax reform. Theres a lot that could be done starting with 75,000 pages of tax code. That would be nice also. Im with you. Let me go back out to ben. Ben, youre the historian here, youre very accomplished and you know these things inside and out. Gary just brought up some pretty good points. It felt like Ronald Reagan, maybe it was anecdotal, maybe it was coincidence, but when Ronald Reagan started to cut those taxes it was a new morning in america. We did come to life after those miserable years. Even bill clinton was smart enough to go through the middle, lower taxes and those are great periods for our economy. Yeah, and there was this dude named Franklin Delano roosevelt who greatly raised taxes and we had the largest growth in productivity and personal income that weve ever had. Got a lot of spend noug too. The question is do we want more deficit spending or do we want to cut taxes. Were stimulating the economy like crazy with deficit spending right now. By the way, let me get this 75,000 tax code pages, the ordinary citizen deals with seven pages of tax code. The 75,000 pages affects very few people indeed. I dont think the correlation has ever been made between cutting middle class taxes and national growth. The reagan thing was we could debate whether reagan or the military buildup we know that world war ii out of the great depression. Coming off a tremendous recession. When reagan cut tacks we were coming off a tremendous recession and we had very, very good monetary policy. The real that made the recession even worse. It made it worse. It made the recession worse because he cut the inflation and were never going to agree on whether reagans tax cuts or the military buildup or the fact that we just in an Economic Cycle caused the great 80s boom. My point is do you think there should be significant tax reform . Youre an economist. Should we be plugging those loopholes and lowering those rates . A lot of people say it will make businesses hire more. I think were already in a situation where business is finding it hard to find qualified workers. Talking about the middle and we cant get Truck Drivers because they cant pass a drug test. Adam, ill give you the last word on this. Heres the thing, to charmies point, businesses have been crying. We do have the highest taxes out there. We cant repatriate money and the average person watching this show who does shop at walmart would like some relief. I would be very interested in a candidate talking about comprehensive tax reform. But what does it mean . At least hes saying something. We know the direction. What does it mean . It means lower taxes. Yes, i would like to pay lower taxes. Give me that one choice, would i like to pay lower tax ts, yes. But its not that simple. We need leadership. Good answer. Someone said what does tax reform mean . Talk to paul ryan, talk to erskine bowles, senator simpson, they provided tax reform and it was rejected by president obama. We know one thing, the American Public trump is a joke. Ben, i said the same thing. Lets leave it right there. Trumps steamrolling continue os go on and hes adding more and more layers to it. Folks still outraged over the planned parenthood videos planning hundreds of protests today. Now the Embattled Group is fighting back with its own controversial video. A family making half a million bucks a year and gettib get ready for the protests. More than 300 rallies against planned parenthood expected across the country today all calling to defund it. But the organization is fighting back against some republican senators trying to do it. Ben stein says those a adds are more of a waste of money and show why we need to stop giving tax dollars to this organization. Ben . There are an awful lot of american who is believe abortion is murder. Its insanely wrong to take tax money from people who believe that, and im one of them, and use it to support planned parenthood so they can then shift money to do abortions. Gary k. , it is an outrage that taxpayer money would be used in such a controversial way. This is a Large Organization with a whole lot of very wealthy supporters. Very wealthy. I dont know why the taxpayers have to be sut in this position. Yeah. I say get private dollars. You have 1. 5 billion in assets and are clearing more a year. Enough is enough. My view on this, i think there are ten times the number of Community Health centers out here and if you talk to anybody on the street here right now, particularly women, they would tell you, get rid of planned parenthood, women will never get care. Thats just not true. The numbers dont support that. 20 seconds. I would just say as someone whos prochoice, i am for defunding them for the simple reason that theyre a political arm of the Democratic Party. Absolutely. Its one thing giving out contraceptives and they werent as political, but they fund candidates that go against republicans. Thats fot to be a violation of theyre providing care, though. Mammograms. Where is the care for women . Im not a tax expert. That was the reason the irs went after supposedly some of those notforprofit organizes. Adam, to charlies point, on thursday they actually went to Bobby Jindals Governors Mansion to protest at his home. This is not some organization thats being attacked and they cant fight back. Go ahead, adam, what do you think . This is a good example of misdirection and misusing language. This is not about defunding. Planned parenthood performs medical procedures and me kate pays for them. If we want to have a conversation sh should medicaid stop paying for abortion at every Health Care Institution that provides them, lets have that conversation. How about Health Care Institutions by the way, how about Health Care Institutions de facto arms of the Democratic Party . Because thats what this is. Youre changing the subject. Im not changing the subject. We arent funding its exactly the same subject. Planned parenthood let me finish. Were not writing a check for planned parenthood. We are allowing them to take advantage of medicaid law. We are funding an organization that is part and parcel of the Democratic Party and that is unfair. Let me jump in one second. Adam not eligible to provide a adam, should they have access to taxpayer money in their present form . Planned parenthood. Obviously ive already said if they qualify as a Health Care Provider that can bill to medica medicaid, then yes. That is not the same as saying what other organizations are marching to the mansion, rallying for Democratic Candidates . I dont get how they can play both roles. Talk about misdirection, alleged am, how about causing calling a medical procedure a murder a medical procedure . How is that for misdirection . Thats not my definition. Thats not my definition. Im curious about your testify in addition. Were having that debate. Hold on. Lets leave it there. Thats a whole different debate. I think the bottom line is even people who are prochoice to charlie gasparinos point feel that theres something not right about this particular organization having this much access to taxpayer money. Well definitely have the other debates later. Dont want to get bogged down with Student Loan Debt . How about promising to give up some of your future income . A plan to avoid taking out college loans. Instead, students would give their college part of their income after they get a job. Thats what Purdue University is row posing. Does it make sense to you . You are the maven on this kind of stuff. Theyve tried this already. It doesnt work. The reason it doesnt work is because investors. This is how its been tried before where theyre asked do you want to invest in kids earnings after they graduate, and nobody wants to do it. Its not really a viable idea. I think the best consideration here is that you cut tuition, and thats what Mitch Daniels has done at purdue. Everybody needs to do that. That would be the right solution. Adam, what do you think . Well, i like the idea even if you have to run it at a loss because a lot of times these kids arent paying back their loans anyway. What investor will want to operate at a loss . Uber because they expect a huge valuation. A better way to do it would be for the university to fund it. I mean, it is like a tuition break, actually. I think it would instill some responsibility in these students. Responsibility in the students . You know, i like the idea that adam just brought up. Why dont these universities, harvard has 40 billion. Why do kids have to take out loans . If your education is so great, you back it up. You fund it. I think this might be a good deal. 40 billion. Thats a lot of cake. Look, i dont mind this idea. I just dont think its going to really fly. The idea that the way this is set up is if you come out of college and you make a lot of money, you can pay back your loans easier to the investor versus if you dont have the wherewithal, you can stretch it out a little more. Thats okay. It almost privatizes thing. Im just not so sure its going to fly. What do you think, charlie . You are saying the endowment would fund this thing, right . I just dont quite understand how it works. Listen, it would be nice to privatize student debt, but the private sector, i dont think, will get involved because the endowments have a fiduciary. Youre just paying a different piper. Delinquency advisory fwaun through the roof. Theyre over 11 right now and getting higher and higher all the time. You know, maybe the tuition is the area, but what do you say from purdues point of this thing . Maybe is it novel . No, its not novel at all. Students take out a loan, here doing the exact same thing as my friend charlie just said. Theyre doing the exact same thing. Theyre promising a portion of future income to repay the loan. I think theres a moral hazard involved in lending to college, and i think you would want to drug test them before giving them a loan. They wont fail. Thats not going to work. I mean, golly, ben. No wonder we have a worker shortage. All right. Thanks a lot, guys. Special thanks to charlie and jerry. See you on fox business. Thats every week night. Adam, what do you like here . Hcwi. Thats a global stock atf. The world is cheap, so buy the world. Sflo its an index it turns out there may abe good reason why those secret side deals in the iran yan nuclear deal were secret. A new report claims iran. Are they right . Hi, everybody. Thanks for joining us. Im david. This is forbes on fox. Lets go in focus with steve forbes himself. Mike, swron, along with Carrie Sheffield and bruce jackson. Steve, isnt this a deal breaker . It should be a deal braker if it wasnt for a misplaced Party Loyalty it would be. This is like having animal house