Because you mention venezuela, this president in this administration condemned what is going on in venezuela, but has not done the same thing with other leaders in the philippines and in turkey and also in russia. The president seems to have seems to have no problem with some authority tearian regimes and with others. I will ask you one more time, why is venezuela different from turkey, or russia or the philippines . I think what the president is focused on being effective, effective advancing protecting human rights. Advancing the rule of law. You have seen him do that in his relationship, weve seen him do it quietly in every relationship. So, how much does it help to yell about these problems . It has inreally delivered in recent anyway. I dont think you should assume anyway because youre not the meetings. Youre not in the phone calls. The president has done quite a bit, will continue to do more to advance and protect human rights across, across all of our relationships. Reporter sir, with the president in the region, is there any concern or expectation that it could cause the north korean regime to ratchet up their aggression . Are we doing anything proactively to prepare for some acceleration . Yeah. The only thing that is ratcheting up north koreas aggression is north korean regime itself. So what is important is for us to have the capabilities necessary and to have them in the right locations to deter, conflict and if necessary to be able to respond to north korean aggression. Were doing that really with our allies and partners in the region, primary, our great south korean allies, literally under the gun in that regime, have since the armistice in 1953. Were working together with our south korean allies to make sure we have highest degree of readiness. Of course you have seen the most recent, some of the most recent provocations involving Missile Launch muchs over japan and north korea posed a great threat to our ally in yap pan as well. I mentioned this is a global threat that requires a global response, improving our military readiness, insuring that we have the right assets, including strategic assets in the region. It is immensely important to preventing conflict. Making sure were prepared to respond. Reporter general, there are some Foreign Policy experts, some Intelligence Experts who believe only route to negotiated settlement between the United States and north korea, would have china support, would be very strong pledge from the United States not to seek regime change in north korea and also to remove u. S. Forces from the Korean Peninsula and provide other methods for south koreas defense. Is that something that this white house would entertain . Were always assessing strategies and policies to the degree we think theyre effective. Of the we said the goal is denuclearization of the peninsula, period. What youve seen, maybe the end of the beginning of the president s strategy in form of new sanctions in place now, much more work to do to isolate the regime diplomatically and economically. And think we have to be a little patient here for at least a few months to see, what more we and others can do, including china as some of you mentioned at the beginning. So i dont think we need to reassess our strategy now. I think we have to give up a couple, few months, then see what adjustments we need to make [shouting questions] reporter ask you about point of this visit. Talk who will be leading the u. S. Conversations about trade since we know that secretary mnuchin is not going . Yeah. Reporter we dont have confirmation whether ivanka or jared or, or even the u. S. Tr. Who will lead the negotiations. Certainly the tr will lead the discussions on trade. In terms of trade, economic development, economic practice, it will on you are ustr. And at times reinforced by other members of the president s team. It is the president s trip. So the president will be leading the discussions on trade and on security and rest of us are there just to support really his engagements and to make the most out of the visits as we can. Thanks, everybody. Trish been listening to general mcmaster talk at the daily briefing. As the president travels to asia. You heard general mcmaster say the goal is nuclearfree, nuclearfree north korea. The president will meet with some of our allies and work towards them. Republican lawmakers are unveiling the tax reform bill. Were all over it for you. Markets are up 23 points. Welcome to to well welcome to the intelligence report. What the bill means for you, and how it will affect businesses, and how will it affect the economy. Were less than an hour from the president s big fed chair announcement. Well find out what the next head of the Federal Reserve so moments from now. When it is expected fed governor Jerome Powell. What will that mean for the fed Going Forward. Were talking about normalizing rates. He is the right choice to be able to do that. Guess what, legendary bond investor bill gross is here. He will tell you what exactly is going to mean for all of us. First to adam shapiro, capitol hill with a closer look at gop tax bill. Adam, take it away. Reporter trish, what it will do for individual americans as well as those married, 320 million of us. First we do know the new tax rates and income brackets. Lets get into this. The first full screen, under the gop plan for a married couple were talking about a 12 tax rate on income between 24 and 90,000. Now raising it to 90,000, helps placate some house members from states like new york, republicans who are worried about the repeal of state and local tax reductions. 25 rate from 90,000 to 260,000. 35 up to one million for married couple. 39point of for married income over one Million Dollars. People not married, 12 rate up to 45,000. Would be zero to 12 tax. 25 up to 200,000 for the individual. 35 for individual who earns up 500,000. 39. 6 that would be 500,000 or more. This is progressive. If you make say, 500,000, blessed to be in that category, you dont pay 35 on entire 500,000. It goes in steps. Here is what President Trump had to say about the tax cut for the middle class. I really believe well have it done before christmas. I consider that to be one of the great christmas presents and not just the reform and not just the tax cuts but we will be creating jobs like you have rarely seen in this country. Reporter this there is so much, trish, but to wrap it all up, they i will increase the standard deduction sure for individuals. 12,000 for individual, 24,000 for marriedried couples. 5 on buildings and illiquid assets and 12 on cash. This is what is delivered next week. Watch what the senate will drop. Back to you. Trish thanks so much, adam. A lot of good stuff in there. However if youre making more than a Million Dollars, if youre a high earner, you will not see any Tax Deduction at all. If you are expensing much of your mortgage, youre not going to be able to do as much. Right now the deduction is allowed up to a Million Dollars but theyre changing that to 500,000. So what is the effect going to be on real estate, the economy and Everything Else . Is this going to get through . Bullseye brief bub pusher adam johnson, kaltbaum capital management, Gary Kaltbaum, author of regulating wall street, choice act versus doddfrank, larry white. Theres a lot of good stuff there . Glass halffull. 39 wont change and more deduction ability to do that will be less inned but tell me what the good stuff is in here . The good starve as far as im concerned is the corporate stuff. Lowering the Corporate Tax rate, the expensing, the repatriation, that is all, that is all great stuff. My biggest issue, what are you really doing for the average individual . There is not a lot of taxes to take in as far as the middle class. I wonder why are we still at 39. 6 . You know, when you have taxes so high it real trish that is not the middle class. 39. 6 is the wealthy. Forgive me, not the wealthy, high income earner. When you have taxes so high, it doesnt affect the wealthy, but prevents other people from getting wealthy bass every time they move up the ladder, theyre in a higher tax bracket. I think they should have you know whats and brought it down but i think theyre so afraid of their shadow and words tax cuts for the rich, theyre trying to get some democrats on board. So they are leaving everything the same as far as people in the upper class and people that have produced all the jobs. I wish they did more. Hopefully down the road they do. Trish you know, adam, theyre trying to get some democrats on board. Youre going to get them on board for couple hours. They might. Trish they will still say we, this is tax cut for the rich. That is when they say over and over again. Politically is it smart to take that off the table with, by leaving 39. 6 . Trish, this is not a tax cut for the rich. I want to be clear why. If you make up to 200,000, your tax rate is going down. Youre also getting additional tax credits for your children and for yourself. Trish, there is a lot about this i like. As a matter of fact, the wall street journal as soon as this came out did a excellent analysis which shows that for the average family of four earning 60,000, their tax rate will fall by 75 . Trish thats good. Thats good. Lets not forget, larry white, the people making money are paying majority of taxes. Half the country is not even paying any taxes. So, your average middle class family will have more money in their pocket. By not affecting anything in terms of high earners, how does that affect the economy overall . Well, look, it is important to remember, we are the at moment, were at a pretty, you know, good place relatively low unemployment rate, relatively sort of full employment. And so, i dont think we should be worrying about the overall macroeconomic effect. What we should be more worried, focusing on the effect on incentives to work hard, to move up, incentives to trish does this affect incentives then . Sorry . Trish do you think this has good or negative effect on incentives . I think, you know, its lowering tax rates for all but the superrich. Trish but theyre not rich. Theyre high earners. That well, sorry. Excuse me, high earners, good, thank you. I will remember that. Trish there is distinction and could have a good year in the Small Business, but doesnt mean that you have that great a year next year. There is Carry Forward and carry back averaging as well. The important thing is, how much of a disincentive do you think it is to be paying taxes at 39. 6 . There is no question, incentives matter. The question is how much do they matter versus the issue of who is going to bear the burden . Weve got common needs for our society, infrastructure, somebody has to pay for the infrastructure. And so you know, it is always a balancing act. I think that terrifically important trish a lot of people are up set, theyre saying we cant pay for this, we cant pay for this. To which i point out, sometimes you have a spend a little to make a little. In the case of lower taxes, especially for businesses job creators here, if you spend a little it should come out on the other end. Study any econ textbook, chart this thing out or reagan years we saw better than 4 growth. I want to point out tout viewers. Were waiting a statement by president of the United States. He is making a statement on tax reform. This what he hung his hat on for the whole campaign, promise of lower taxes. So this plan enough for him or is this negotiating starting point . Gary, state and local income taxes if youre stuck in new york, youre one of the bigger earners paying 39. 6 , youre looking at state taxes roughly 9 . City tax in new york city of at least 4 . You maybe cant deduct as much from your home anymore, because the mortgage deduction if gop and house had its way would be reduced. So will have negative effect on some pockets of the economy. I think theyre going trish hang on, larry, gary n remind everyone were going to the president as soon as we got it. Okay. I think they will build a lot more homes in florida if that is the way they will be. It is onerous if you think about it, some people have to work until month of july and august to make the first dime. Theyre funding government first half of the year with their earn ings that is a sin. That is obscene. Something should be done about it. I get what trump is trying to force the states on tear state taxes which is ridiculous. That will be a big fight on hand that will be big worry on votes as we move forward. I heard comments from those states and i think there is going to be some infighting. Trish go ahead, larry. Trish, somebody has got to pay for the men and women who are serving in our armed forces, who are serving abroad, protecting us. Somebody has got to pay. Trish sure but the wealthy already do, right . Air control system. You know. Weve got to collect taxes somewhere, somehow to be able to pay for the overall needs of the American Economy and the american population. You can just say, oh, we all ought to pay, we all ought to pay less in taxes. We have demands for defense. Demands for infrastructure. Demands for education, for our children. Trish however, let youre nyu. We have princeton economics over here. Im going to princeton economics for a second. Bring it on. Trish i think theory, wellproven and welltested, if you cut taxes you grow the economy. Yes. Trish that is what we need, growth. We have 3 . Heck it could be 5 , if you cut taxes. Yes. Trish that means more tax revenue. It is your money, you made it, so you should keep more of it and spend it as you see fit. All right, by the way as far as leveling the Playing Field goes frankly even though this hurts me immensely losing deductibility for my state and local taxes it is is the right thing to do. I dont deserve to get a Tax Deduction for someone in state like texas and florida doesnt get. Trish here is the president of the United States. Lets listen. Thank you very much. I would like to thank the republican the republican members of house ways and Means Committee to discuss a plan to cut taxes. It is reform. Lots of cutting tacks. Nothing more important to the economy. This will really bring it to the next level. Before we begin . I want to make a very brief announcement. I had an excellent meeting today, with chairman grassley . , on immigration reform. Following terrorist attack in new york . Immediately terminate the visa lottery program. Its a disaster, grants visas on merit. Many a cant are randomly selected in a annual lottery. The people put in the lottery, are not that country as finest. We know the program presents significant vulnerabilities to our National Security of the it is a very Unsafe Program for our country. And were not going to allow it to happen. To end that program. No, i think congress will take that up very quickly. Additionally Congress Must end chain migration, so that we can have a system that is securitybased, not the way it is now, and we want a system ultimately, that is merit based. So we can bring in people to help our country, grow our country and be safe for our country. Want to select people based on ability to country not being able to choose them randomly we have no idea where they are, we want them based based on family connections. You have 24, 25 people in. We have to end chain migration. With that being said this is a big tax cut day. I want to thank some of the people. Paul, Great Press Conference you just had. Fantastic job. Appreciate it. Paul ryan has really led an effort. He had some awfully good help. Do you mind calling diane black. I called diane black. You came through, diane. Although lets wait month 1 2. Or could be less. Where is peter . Peter, you were fantastic today. We appreciate it very much. I know how hard you worked. Kevin america cart mccarthy, broadcom moving back into the United States. Its a fortune hundred one company. We had a News Conference with kevin mccarthy. Hello. Been a long time. I know. But, kevin, you really have been fantastic. A man named kevin brady. He doesnt stop. He doesnt stop. There is nobody like him. We really appreciate it, i have to tell you. But it is really a great team. We have a great team. And, its a team that, loves what theyre doing. They love the American People. They love this country. Theyre going to get it done. It is tax cuts. It is tax reform. And we added the word jobs. It is all about jobs, well have tremendous numbers of jobs pouring in. In a few days i will be traveling to asia, to advance americas economic and National Security priorities. I will miss you foals. I will miss everyone at the table. I will be back in 11 days. I know things will go well. There is a really a great spirit. A great popularity for what were doing. They want it. They need it. They have to have it. It has been terrific. Im counting on all of you to help maintain momentum on the tax cuts and tax reform during that time. I have no doubt you will be able to do it. While im in asia, members of cabinet traveling around the country, directly to taxpayers, focusing on the regional media. Which i actually find to be a very, very honorable media. We do very nicely with regional, i love regional media. These folks. Of course secretary mnuchin and director cohn will remain here working closely on tax reform to work closely with all of you. Paul, i think theyre working closely with all of you. The relationship, kevin has been absolutely terrific. Well be with all the way 100 . I want to also have a bill on my desk, hopefully, kevin, by thanksgiving, if that is possible. I want everybody in this room standing by me and well add some others as we sign. And thank you, again, for the incredible job you have all done. Some of the tax cuts and simplification work that well be doing for families, they include a doubling of the standard deduction. So more income is taxed at the zero rate. The first 24,000 for a married couple and 12,000 for singles. It will be completely income, or taxfree. So, that is something. That is a, that is a tremendous thing right there. So were going to be, having a big zero in front of a lot of people who are working very hard. They cant make ends meet. Were going to reduce income tax rates for individuals, increase the Child Tax Credit. Extend it to more middle income families, a far larger group. Repeal the alternative minimum tax, end the estate tax or the death tax as commonly called. Retain tax incentives for mortgages, charitable contributions, work, higher education, retirement savings. We have a lot of things that are the important, generators in our economy. Most americans will be able to file taxes on a a single sheet of paper. Will it still be there or paper 1 2 . [all talking at once] great job, thank you. [laughter]. I didnt know i would be given a prop. [laughter] this is yours. Beautiful, thank you. But we think well be able to do that. If we, if we have it the way it is now, as of this moment that is what well be having. Will make the life very simple. The only people that are not going to like this. H r block, they will not be very happy. Probably only one of the companies in the country that will not be thrilled. Well make america globally competitive again. Our Corporate Tax rate is 60 higher than our average competition. Well slash the corporate rate from 35 to no more than 20 . That is one of the big things in the bill. That will create dem does success for companies and for jobs. Five years, expense the full cost of new equipment in the year you buy it. Something that, personally i never heard about. When i was a great incentive for when people want to be business people. When people talk about the different elements, paul, they dont talk about that. That is one of the great sleepers of this bill. Expense in one year. Well move from a worldwide system to a territorial system. Tremendous change. In 2016 American Multinational Companies kept 70 of their foreign earned profits overseas. Were imposing a onetime low tax to bring back all of that corporate money. Now, we think it is probably in the neighborhood of 4 trillion. Will be brought back into our economy, into our country. And that will produce tremendous growth and jobs and lots of other things. The Council Economic advisors estimates that the Corporate Tax reform would increase average Household Income by 4,000. Were reducing tax rates for. Is corporations, partnerships and sole proprietors which really avenue affect as large percentage of our people and our taxpayers. If the growth rate of real gdp increases by just 1 , were talking about talking about 2 1 2 trillion dollars, and millions of jobs. So, if we go up to four, as an example, were talking about 2 1 2 trillion dollars, and i personally think we can go higher. Last quarter, we did three. That took off i think, you can figure at least a point for hurricanes. We had five hurricanes essentially. And we hit, we actually hit the 3 number. The quarter before we hit 3. 2. When we started we were at one, a little bit more than one. Now were at three, 3. 2. I think we would have hit four. People are predicting four for next quarter. Well see, but i always said it could be quite a bit higher than that a lot of that is rules, regulations, in history of our country, no president during their entire term has cut more regulations than weve cut. Weve cut that in 10 months. We have a lot more to do. We have some statutory requirements. We have to give notice. And you know what this is, diane. You give notice, 90day notice, we are given those notices. We have a lot of cutting left. We cut out 48 . Well be quite a bit higher than that. That is one of the reasons that were doing as well as were doing. Stock market has hit a new high. Close to 60 times during the course of this presidency, this administration. This group of people sitting around this table, were close to 60 and that is something that is very special. And i havent looked today, perhaps well add it. Well make it an extra one i hear were doing very well today, a lot is having to do with optimism. There is tremendous optimism. The highest they have had, business and manufacturing optimism is the highest it has been. , since the chart. The one element missing is taxes. Were one of the highest taxed countries in the world. Well get down to be one of lowest taxes. It wont be lowest, maybe we get that next time. Well be one of the lowest taxed. Well be competitive again with rest of the world. You look at china. Theyre at 15 . You look at some countries. Theyre quite a bit lower than that but at 20 were very, very competitive with rest of the world. You will see numbers and growth and jobs. And really see wages going up. Something were seeing now, first time in a long time, wages are starting to rise for people. In some cases they have been 18 to 21 years without real salary or wage increase. A lot of good things are happening. This is the final element. Tax cuts and tax reform, it is an honor to work with, my fellow pubs. I republicans. I think well have democrat support. I think it will be very heart for them not to support it. There was a certain newspaper that wrote today that your competition was out there trying to say, it is for the rich, it is for the rich. Of course they routinely, turned out they werent telling the truth. The paper actually called them on it, which was shocking to me, shocking. [laughter] they said theyre not telling the truth. This is a middle income tax reduction and its a very big one. It will be the biggest tax reduction in the history of our country. Thank you very much. Everybody. Appreciate it. Thank you. Trish the president touting tax reform, tax cuts. The ability to put it all on a postcard. In fact i think he kissed the postcard, offered it to paul ryan, who joked i didnt know we would have props. This is important. The president recognizes how important it is, and dont forget, he is someone who ran on the economy as his platform. And, so far, so good anyway. 3 gdp. 23,000 plus on the dow, something he noted, pointing out the market closed higher more than 60 times since ive been elected. Im back with Gary Kaltbaum and larry white. Eventually became a big business owner, this is something President Trump gets, right . Yes. Trish this is in his dna, the importances freeing up people and growing the economy. What distinguishes him in your view from previous president s . This guy grew up in queens. Learned real estate business from his father. Much sleeves rolled up. We look at donald trump living with fancy suits and living in a tower with gold faucets is. That is recent donald trump. America relates to the donald trump negotiated copper pipes, sheetrock, plaster, do you hire this guy, or that guy. It is tough queens seat of the pants populist thing. He is millionaire. Trish billionaire. He made the money himself. There is something very appealing about that. Trish it is incredible because i always said, if there is one person that can really sell tax cuts, perhaps it is him. For so long, gary, tax cuts have been demonized, as policy that only you know, the wealthiest would embrace. Yet america sent donald trump to the oval office, because they wanted someone who understood business and who understood them and their economic challenges. So, gary, is he going to suck is seed on this front . He has got, he has got congress. He has got the senate. Can he get tax cuts through . Yeah. I think he will. Major thing that is happening here, is changing the trajectory. We have seen many years of higher taxes, more regulations, mandates, fees, fines, and more government control. This changes it. Not all the way. There is a long way to go. In stark contrast, i was listening to ye old Bernie Sanders yesterday saying, we need more of your money so we can do more things for you. Donald trump is saying, you keep more of your money, so you do things for yourself. Trish which in turn does things for the economy. You got it. Come election time, that will mean a lot, especially, especially, if the economy stays in 3s or higher, and especially think with the markets keep doing what they are doing, the left will have big, big trouble. Trish larry, i know youre not totally on board with all this. So i will give the floor to you at this point. You may be more receptive to Bernie Sanderss comments than many of us here . No, dont put me in that camp. Thank you very much. Dont put me in that camp. But first, the devil is always in the details. Simplification, it is all good. It is, the tax code, as you all know, is a horror. And having people spend hours, or having to pay accountants or Tax Return Services to help them fill out taxes, thats a horror. So, to the exextent we can make it simpler, that is all good. Trish you like that postcard too . Simplification, simple page, one page, that is, that is great. That is music to my ears. Trish okay. At the same time, weve got to remember, weve got all these things we as a population, we as an electorate, want to have done. Whether it is having a safe country. Increasing the, you knows the capability of the men and women who serve in our armed forces, getting a better air Traffic Control system. Getting more potholes fixed in our roads. So trish larry, let me jump in for a moment. We have got to pay for them somehow. Trish we do. Are you disappointed this doesnt cut spending . Well, look, this is strictly on the tax side. Well have to see how that plays out against what the spending side is going to look like. It is simply, you got to remember, there are both sides, and there is not a magic wand. Yes, you cut taxes. You provide some encouragement for men and women to expand their businesses, but the crucial question is, by how much . How much are people being discouraged right now. But how much will they be incentivized. Trish Small Business owners will benefit, adam johnson. Go ahead. Seeing 25 instead of 40 . From 39. 6 down it 25. I have to jump on something here. Trish okay. Were going to send them 3. 6 trillion this year, if heed rally, over 6 trillion including local and state. Are we being told that is not enough . 6 trillion for the government to do their bidding, to do whatever they need to do . I have news for you they i hear you. They didnt parachute in from mars. We elected these men and women to supervise our, you know, to set our policies. I know. A lot of that is things that we all support, like, social security, like medicare. Like medicaid. You know. It is not like the dollar bills are just flying away into the sunset. That is part of the problem. Too many of those dollar bills are flying away. Trish lets get out of here for a moment. Just response to what larry is saying. Larry, the problem entitlement spending is running out of control. Sadly that is not part of the current conversation, youre absolutely right. Were only talking about taxes here. But the other side of the government ledger which is the spending side, the entilement side, spending side, social secured, medicaid, they will be bankrupt in 15 years. We have a real problem. This is merely first step i hope what will be a series of steps to finally get the Government House in order. Trish you have to get more jobses. You have to grow wages, in part coming from companies needing to hire more, because economy doing that much better. It virtuous circle, we hope. Historically they have exactly done that. Keep our fingers crossed they do it again. Thank you, larry, gary. All amid news of the republican tax bill. Were getting details in. As the details filtered in, what do you know, the market moved higher. Another massive day here for the dow at 23,400. Some say, more is on the way. Well break it down for you next. And administrative paperwork, your days of drowning people are numbered. Same goes for you, budget overruns. And rising costs, wipe that smile off your face. Were coming for you too. At optum, were partnering across the Health System to tackle its biggest challenges. Trish more breaking news. Lets listen in. Jobs for america. The tax reform we laid out with the president today, is a gamechanger. It makes sure that american jobs and Companies Start to stream back to this country. It insures that every american, at every level, gets to keep more of their hardearned dollars. It simplifies the code so much so, that nine out of tern americans will be able to file their tear taxes using postcard system this is new era led by this president and backed by this house. Today we introduced the bill. Well move promptly next week in the ways and Means Committee. These members going for the first time in 31 years to begin action to fix this broken tax code. Reporter what do you say to the people that really only going to help the rich . That what youve done is screw people out of the ability to declare some of the stuff that they declared in the past and tax breaks, not going to be able to do it . The great news here, is that average households in america, struggling along at 59,000 a year, making not just every, every budget count, but every dollar count, will receive a tax cut of over 1100. That main street business, again whose working day and night and weekend to try to make their business succeed is a tax cut of over 3,000 a year. It has been a long time since families have been able to keep more what they earned. And now, because of this tax reform, theyre going to finally see their paychecks go up. Reporter for 2017 . Were focused on growth and accelerating that in a big way. Well work with the ways and Means Committee members, our conference and the president on getting most growth, in the fastest way possible. Reporter what do you say of critics, party of fiscal responsibility [inaudible] well, im convinced that tax reform that gets this country going, jobs moving, paychecks up will move us towards a balanced budget. Im confident this tax reform plan does just that. So. I think were good. Reporter instead of being asia, while tax reform is happening. How is the president either help or hurt . The president is here today, leading on tax reform. He has been traveling the country. His cabinet, everyone is allin on this. So you are seeing with singular purpose a unified effort to break the status quo. To drain the swamp this tax code, and change it for the better for the American People the thank you very much. [shouting questions] trish we heard another republican coming forward saying why this is going to work he got asked the question which all republicans will be asked right now, as well as the president , is this just tax cut for rich . One the most important things republicans can do right now now is spin this narrative on its heels. As i was saying earlier, too often you have seen republicans demonized because they want lower taxes, and that is presented at least by the left as saying, just something for the rich. And part of their communication effort right now is that no, this is not just for the rich. This is for everyone. And as we were pointing out, you know, perhaps not the best part of all this, because no one likes to see work discouraged, but youre very high earners there, theyre going to be taxed at the highest rate, the same as they are right now. I want to go down to Nicole Petallides on floor of the exchange. Nicole look, market was in negative territory. Details came out on this thing. We moved forward turning into the green column. What are traders saying. Youre seeing the markets up 25 points. Weve gone back and forth for major averages. When you look at it, break it down, ultimately looks pretty great for everybody. For example, if youre making 18,000, will pay 0 , instead of 10 . If you make 200,000, you pay 25 instead of 28 . Theyre delving into other parts of it. Looking at mortgages. They dont really love not getting deduction over 500,000 in mortgages. Looking student loan deductions. Theyre trying to break it down. Beg picture, overall feeling it is a step of a right direction. Really helping americans to have more in their pocket for the most part. When you break it down, looks like most people will do better on this new plan. Trish. Trish nicole, thank you very much. What is it going to mean for you . What is it going to mean for the economy . What is it going to mean for the markets . There is another big piece of news were going to get any moment from now. Who is the next head of the Federal Reserve. Legendary bond investor bill gross is here and what he thinks of the president s rumored pick and what tax cuts are going to mean for the economy. I will see you right back here after this. Hi, im the internet you know whats difficult . Adulting. Tj get a job hi, guys. Im back. Time to slay heals, heals, heals yes youuuu no, i have a long time girlfriend. Mom i need my macaroni you know whats easy . Building your website with godaddy. Pick a domain name. Choose a design. You can build a website in under an hour. Yeah whoo yes get your domain today and get a free trial of gocentral. Build a better website in under an hour. Or a little internet machine . It makes you wonder shouldnt we get our phones and internet from the same company . Thats why Xfinity Mobile comes with your internet. You get up to 5 lines of talk and text at no extra cost. So all you pay for is data. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit, or go to xfinitymobile. Com. Trish the tax bill came out today, and with will it mean for all of you . How will it affect your tax bracket . Here with examples of it all is our own gerri willis. Trish, we have examples under the republican tax reform. Consider this, couple earning 59,000 a year with two kids. Largest standard deduction going to 24,000, and enhanced child and tax credit and Family Flexibility credit, that results in a tax bill that is 1182dollar lowers. Their bill drops to just 400 bucks from 1582 last year. Big change for them. Other winners retirees who would benefit from doubling of standard deduction. This is for single moms. Single parents making 30,000 a year, under this new plan, single mothers making 30,000 a year or less, will receive a tax refund over 1,000 because the lower tax rates. Larger Child Tax Credit and Family Flexibility credit. That tax return is, refund, pardon me will be 700 larger than the refund the single mother would get today. The bill would provide relief to Small Businesses in america. If you are a local, Small Business making 500,000 a year, right now, these Small Businesses are taxed at individual rates. Could go to 39. 6 . They pay individual wage rates with current income tax bill of about, get this 128,000. Under this republicans tax plan, their Small Business income will be taxed at lower rate, maximum of 25 . Which in competition that with no alternative minimum tax could reduce the tax bill by about, get this, 25,000. Trish. Back to you. Trish thank you, so much, gerri. Bill grease coming up next. Well get his reaction to the tax plan. Well hear what he thinks of President Trumps pick, rumored pick for head of the Federal Reserve. Bill gross is next. See you here. Realtime analytics, youll get clear, actionable alerts about potential Investment Opportunities in real time. Fidelity. 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I think hes the pick, i think he brings real experience, real Financial Experience to the equation as opposed to simply ivory tower. And thats good. Hes an exprivate Equity Investor and for the past five years hes been on the fed. I think hes soft on regulation and that pleases the market, it doesnt please me, necessarily, and in addition, i think he lacks the proper appreciation for creditbased financial system, thats a broad topic. What do you mean . I dont think as an investor in private equity that he had a sense of credit creation, credit destruction, theed shouldo banking system, et cetera. I think many of his speeches are devoid of some of that intellectual discussion, i think its important Going Forward should we see the potential for another layman moment that we have another fed chairman that knows whats going on. Im not sure at the moment that he does. Is there someone you would have preferred, bill . Well, i would have preferred, you know, perhaps paul mccully from pimco who forecasted the debacle and talked about theminsky moment. Hes not even on the consideration list, otherwise i would have preferred neel kashkari, a legitimate fed governor and displayed instructive ideas Going Forward, but thats not going to happen. Would you have been okay with janet yellen staying put . I think so, you know, im not perfectly content with her, but i think shes done a decent job, shes a little model oriented or too model oriented and you have to be subjective in terms of structural ideas that cant be modeled like janet yellen and others have done at the fed. Do you think Jerome Powell will normalize Interest Rates quickly enough and do you think he will be able to get us out of basically the money printing environment that we have been in for so long . This unwind is going to be difficult as you many times have warned, bill. Yeah, i think so, powell is a yellenlike governor and yellenlike potential chairman. The key is Going Forward what is the normal rate . And i think, you know, fed funds today are at 1. 25, and december might be a little higher. I think most on the fed and powell believes that the normalized fed funds rate is 2 and that suggests to me that bond yields are maybe a little low but not too low and, yes, the real economy can accommodate that. Im not so sure they can accommodate a much higher rate than that and see in terms of the additional appointments, trish, which come after the powell announcement in terms of new fed governors whether theyre hawkish or dovish. One of the names floated was john taylor in your neck of the woods on the west coast in stanford. Now john taylor has been very vocal about his concern that this fed has been too accommodative. Do you think that he may get some position there . Because he talked about as potentially coming in at least is some kind of additional adviser . As vice chairman or perhaps as a governor, yes, i think taylor is a little more hawkish, he has taylor rule that was adopted in the late 1980s by many on the fed, and the taylor rule at the moment suggests that rates should be higher. They suggest what most of us know by common sense that Interest Rates this low, you know, basically is too stimulative for Financial Assets and may not necessarily benefit the real economy and certainly not benefit savers which both you and i have discussed in prior sessions. So does it start to change . Im sorry . Does it start to change . With powell . It will move higher, but probably not high enough to favor the savers economy. The savers are having a tough time these days. Bill, appreciate you coming on. Its a very big moment here. New head of the Federal Reserve. Bill gross, thank you. Liz is going to take you through it. We are about to find out if Jerome Powell is the pick. Liz what will Jerome Powell and his decisions about Interest Rates really mean for your money . It is imminent, the changing of the guard at the Federal Reserve, President Trumps frenetic day, youve been watching him on fox business hour after hour appearing multiple times in front of live cameras about everything from the tax reveal on behalf of the house gop to all kinds of issues including broadcom coming back from domiciling elsewhere in singapore coming back to the United States. Were looking live at the white house rose garden, and the president will announce his pick for the nations top banker. Fox news has confirmed over the