Increases the exclusions. The house has four rates keeping the tax rate at the top at 39. 6 . The house plan has a bubble rate that would have some paying 45. 6 of taxes on some income. Income above 1 million. Both bills reduce Corporate Tax rate to 20 . The plans passage hit late in the week. The dow and the s f ended lower at the ends of the week. Apple has a market value of 900 billion. President trump this asia. The president started in japan before moving on to south korea. The president spoke highly of the Chinese Government but was direct about the future of trade in our nation. President trump right now unfortunately it is a very oneside and unfair one. But, but, i dont blame china. After all, who can blame a country for being able to take advantage of another country for the benefit of its citizens. But in actuality, i do blame past administrations for allowing this outofcontrol trade deficit to take place and to grow. Maria the timewarner deal could be . Jeopardy. Reports are the Justice Department want part of timewarner sold off. If. They are refusing to sell entities like at t and cnn. We have no idea whether this deal with close over the short term. Tax reform dominated the conversations. Specifically the senates proposal to delay the Corporate Tax rate of 20 by one year. I had the opportunity to speak to Steve Mnuchin about that. The president would like this to go into effect right away. I think the sooner we get this, the 20 rate, the better it is for the economy. But the house and senate are having to look at how we pay for all of this, including a major focus of the president is middle income tax cuts. So these are things that are still being discussed. Obviously right away is better than a year, but a year is better than a longer phasein time. Maria would that Impact Business if its a year phasein. Maybe that year people can plan whats could tomorrow in 2019. This is a real improvement if its one year. What are the incentives if there is a year phasenin . If we have the automatic expensing. That will be a huge incentive for businesses to invest right away. Im confident wherever we get on it. The most of important thing is we ends up with a competitive tax system. We have one of the highest tax rates in the world with tax on worldwide income. We have this crazy concept of deferral. If you leave your profits offshore you dont pay taxes. Its no surprise we have a trillion dollars offshore. We convert from a worldwide to a territorial system. Maria there was upset about the houses bubble rate. People say that means some people, many people are getting a tax increase out of this plan. For this group in new york and i heard this from plenty of people, including the president , he will have a tax increase. So for people who make over a Million Dollars in the high tax states, there will be a tax increase. The bubble rate is a technicality we are trying to work through. But the president s focus is this is on a middle income tax cut. This is about businesses being competitive. People in this room will benefit from the business tax. But this is not about tax cuts for the rich. Maria you bring up new york. And the elimination of the deduction. The state and local income deduction. People in this room are saying, new york is a donor state. They pay 48 million more than they get back. Why are you raising taxes by eliminating this deductionen a donor state that is paying more than it should any way. Thats a good question, maria. I just came back from california where there were very similar comments. So first let me comment on the concept of a donor state. We have a tax system where the rich people pay higher tax rates and a majority of the taxes collected from high earners. So to the extent a state has more wealthy people which new york and california does, there is a lot more tax revenues coming from the state. I dont think its a question of being a donor state. Fundamentally we believe the federal government should get out of the business of subsidizing state taxes and thats the reason to do it. We are getting rid of the amt. For a lot of people in new york they pay the amt. And we have run a lot of numbers. We are sensitive to people who make 200,000 to 300,000 that they will get a thanks cut in new york. This is focused on the American Worker who has had no wage increases for the last 8 years. Maria the corporate move from 35 to 20 is something you believe will move the needle on economic growth. Why do you any that will particularr dictate behavior on the part of managers and ceos that they will take that extra savings and create jobs. Maybe they will just take that money and buyback stock. I had the opportunity to travel on the campaign with the president and met with hundreds if not thousands of business people. Big business, small business. The two things we heard on the campaign were regulations and taxes. And the president is 100 convinced, as am i, if we give u. S. Business a fair level Playing Field that we can compete better than anybody on the world. When you have a tax system that incentivizes moving jobs offshore. Thats not consistent with what we want to do. This is about bringing jobs back here and making this competitive. On the campaign the president wanted to have a 15 rate. We started at 15 , the president got comfortable 20 was the right balance. But we are sticking with the 20 . Thats critical. Maria the 20 rate is critical, even if its a year later. We would rather its sooner but well work with the house and senate on the rollout of that. Maria are you expecting any democrats to vote yes on the tax bill . And do you have the votes to get this passed . The answer is i think well have democrats. The president invited democrats to come for his speeches. We have had democrats on air force one. We have had them come join the president. We had discussions with democrats. I just got off the phone on the way here. We hope there is democratic support. On the biz side and the on the business side is not a republican versus democrat issue. Its something both parties understand. Maria the other night we saw victories almost across the board for democrats whether it be new jersey or virginia or new york city. Republicans are saying tax reform is more critical than ever before or else well lose the 2018 midterms next year. How did you feel when you saw the victories . I separate the issues. I dont feel any differently before to after the election. Tax reform is critical for the economy. Its something President Trump campaigned on. Its something the market expects. Its critical. The i think the republicans understand that and hopefully well get democrats to understand that as well. Maria what about that carried interest loophole . 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A point of contention is the socalled carried Interest Deduction it allows some in the Financial Service industry to be taxed at much lower rates on their income. The senate plan seems to keep that loophole. A lot of people the last several years looked at carried interest and said this is not fair. Where a Hedge Fund Manager or real estate person can look at their revenue and treat and treat ordinary income as if it were capital gains. Will there be changes on carried interest . Im sure there is nobody in this room that cares about this topic. This is a highly interesting issue to a small part of the population. The president said on the campaign that he wanted to change the rules for hedge funds and carried interest. The house proposed going to a threeyear holding program. When you look at carried interest, 2 3 of this is in real estate. Only a third is in private equity, venture capital. A lot of this is small developments. But its a big step in the right direction. Bar were retalked about the gses like fannie mae and freddie mac where they took money from those companies and used it for other things. Is that true . It is. I have been involved in the Housing Market for 30 years and specifically involved with understanding fannie mae and freddie mac. I have a lot of experience in this. As i said when i was confirmed. Im determined that we have housing reform and we come up with a permanent solution for fannie and freddie so they are not in the current form which is effectively owned by the government having a massive line of credit with the treasury and the treasury being compensated through dividends. We need to fix the housing system. Thats something ill be working on next year. We are going to look at fha and jenny mae. Maria people are wondering why these companies are paying dividends. Is that appropriate . Have you considered stopping the dividends . I have not considered that. There have been discussions about the dividends. I told the director that we expect the treasury expects to get the dividends and expects to be compensated. The taxpayers have a large exposure. These companies couldnt exist without that and thats why we are being paid the dividends. We want a permanent solution. We are not look at keeping these the way they are for the next 8 years the way the Obama Administration did and use the money as you said for other things. Maria we should expected change in that. Thats something i expect well be doing on a bipartisan basis. There is a lot of interests on both sides. We had a bunch of preliminary conversations. That will be a big focus of mine for next year. Maria reaction now from a top ceo coming after this. Stay with us. Its easy to think that all Money Managers are pretty much the same. But while some push High Commission investment products, Fisher Investments avoids them. Some advisers have hidden and layered fees. Fisher investments never does. And while some advisers are happy to earn commissions from you whether you do well or not, Fisher Investments fees are structured so we do better when you do better. Maybe thats why most of our clients come from other Money Managers. Fisher investments. Clearly better money management. Hi, im the internet you knoarmless bowling. Lt . Ahhhhhhhh you know whats easy . Building your website with godaddy. Get your domain today and get a free trial of gocentral. Build a better website in under an hour. Maria we just heard from secretary mnuchin and his plan for tax reform. Real estate giant don peebles, ceo and you found irv peebles corporation. Whats your take on what we have heard so far. The impact for new york is going to be catastrophic. It will lead to a mass exodus of high income earners. Especially entrepreneurs and Business Owners who can relocate. The local pressure on taxes. The mayor is calling for an increase in taxes on millionaires, and a mansion tax increase. That will be hard on real estate. Maria new york just voted for that for another four years. Do they know there is a mansion tax coming . I think they either stayed home or they voted more nicole. Maria an exodus out of new york, why . No deduct built of state income taxes. New york is one of the top three highest tax states in the country. When you add the new York City Tax implications it can be as high as 17 . Its a pill people will have difficulty swallowing. Maria people will say my tax rate is 53 or more. I had lunch with someone paying 57 the other day. Unincorporated business tax. Why stay in new york and pay 57 when you can go to florida and pay . Zero. On top of that, there is a balance. Historically people make the decision that one this is a great city full of entrepreneurship and is business friendly, and a high quality of life. But as the environment has changed where the quality of life is diminishing. People i think will say watch that. I think it real estate in new york is at a breaking point. Prices have gone very high. Now there is a big pullback. There is a lot of new inventory on the market. At the low tend which unfortunately which is 2 million and down. Those are doing well. Its that space in the middle. This is the first time in my career where i have not seen a direct correlation between the stock market and the new york real tells stateHousing Market. When the stock market rises so does demands for real estate. Maria do you think real estate prices go down . I think the psychology of the buyers change. There is a new demographic. Millennials and generation xers look at real estate differently than my generation does. Now with the experience of what happened in 2008 and 2011, these buyers are reluctant to buy and they want more mobility. Maria anything else strike but this tax van in. The idea that we are treating corporations, large corporations differently than we would treat entrepreneurs and small Business Owners is a bit unfair. I think there should be a direct correlation. If you have reduce Corporate Tax rate to 20, clearly there is no room to raise the top rate. We want our money to not go into the government, but go back into our economy. Thats an unfair approach. And they are eliminating the historic tax credit. If they eliminate the historic tax credit program, its challenging for real estate in more mature markets especially on the northeast quarter. Taking that away will create problems. Maria dont go anywhere, more wall street week after this. November is epilepsy awareness month. I am the proud father of a very strong little girl named adelaide who was diagnosed with infantile spasms an incurable and debilitating form of epilepsy. Its been a devastating journey that has robbed my baby girl of normal development. Thats why i have launched the my shot at epilepsy campaign and im asking you to join me. Take your shot at the hamilton pose, donate to help us find a cure, and lastly, share it on social media. This is our shot to take. Learn more at myshotatepilepsy. Org you look incredible. Did you go tanning . Yeah, check it out. Jealous. Best spring break ever. I know. Youre getting so tan. Finals are the worst. Im so glad theyre over. We need some sun. I cant believe our friends are getting married. She looks amazing. Wheres your tan . I cant go tanning anymore. Doctors orders. Its melanoma. Im stage three. Melanoma is the 2nd most common cancer for young women, 15 to 29. Protect yourself. Protect your friends. Stop tanning. Learn more at spotskincancer. Org. A message from the American Academy of dermatology. Maria lets take a look at next week. The big events that could impact your money its a big week for data. As we hear from the Producer Price index. The redbook report is out on retail sales. And the Producer Price index. Well find out how the Manufacturing Industry is doing when we get the numbers from the empire state manufacturing. And housing construction. Then we have earnings. Home depot, and Cisco Systems will report. Later none the week, huge for retail, walmart, best buy, target, they will all report on their latest quarterly numbers. Coming up next week on wall street week. Well talk with robert kaplan. Have a great rest of the week everybody. I will see you again next time. Thanks for watching. [ ] im bob massi. For 35 years, ive been practicing law and living in las vegas, ground zero for the american realestate crisis. But it wasnt just vegas that was hit hard. Lives were destroyed from coast to coast as the economy tanked. Now its a different story. The American Dream is back, and nowhere is that more clear than the grand canyon state of arizona. So we headed from the strip to the desert to show you how to explore the new landscape and live the American Dream. Im gonna help real people who are facing some major problems, explain the bold plans that are changing how americans live, and take you behind the gates of properties you have to see to believe. At the end of the show,