Basic terms of the phase one part of that deal. That is coming from the wall street journal, among other sources saying that the deal is not a finished or kaput deal at all. So well see how the market responds to that. Some mild positive reaction to all of that. The s p in record territory. The nasdaq in record territory. Both hit records yesterday. Any gain today is a record. Were following a couple of other developments. Well pursue it with the tiktok head of u. S. Policy on this giant move right now to find alternatives to how tiktok ultimately is or even if it will be sold off or kicking the companys tires. The president intrigued by that. He said he would support an oracle move. He said a couple weeks ago he said he would support a microsoft move for the company. Well speak to the novavax ceo on the latest vaccine trials. If you had gotten into this stock by the way at the beginning of the year, you would be up more than 2,000 but whos counting. Day three of the Democratic Convent
Art laffer on what this can be done to correct this. The fda is under fire for its handling of food recalls. What the agency is accused of doing. Were fourdays away from new years eve. New york city is bracing for unprecedented security and record low temperatures. What is being done to prepare for the nations largest celebration. Leah . Lea dow making a turn around this afternoon. Inching closer to 25,000. Gerri willis on the floor of the new york stock exchange. Gerri, what are the traders saying. Lea, were down with the traders and they are optimistic. The dow closed up 27 points. Back and forth all day long, finally ending in the green for the dow. Winners in the dow, visa, mcdonalds, amex, unitedhealth. Variety of industries there, broad improvement across the board. Other news that markets responding to, pending home sales increasing. 2 of a percent, exactly like it sound. Tells you how the Housing Market will be in future weeks. Gaining hovnanian, lennar, pulte group and toll br
Your apples are ripe. It is time to harvest them. What is the best way to harvest those apples . Do you pick them from the tree or do you chop down the tree . Apples are income. The trees are capital. The reason we want a socalled, consumptionbased tax because we dont want to mistreat capital. But to understand why it is so foolish, dont think about marxism, socialism, free market theories think about it this way, if you chop down the tree or more accurately what the current tax system does if you harvest apples by sawing off branches of the tree, what does that do for your longrun prosperity, your longrun income . You obviously will have fewer apples next year. It doesnt make sense to quadruple and triple tax capital. On this issue marxists and socialists are right they agree with sensible economist. You need capital for long run growth. We should have a tax system treats all income equally. No longer tax income saved and invested. You want neutrality in getting rid of all the loophol
Of these tax changes. So no net cost to the government over time. And you have peoples income up about 10 and additional jobs so more people are working. Now that is close to a free lunch as you can get. And thats the damage done by the current tax system. All the neutral tax systems are a means of getting the three layers of tax. Some are collected at business level. Some collected only at retail. Now my favorite, the personal expenditure tax is put down your income subtract your savings pay tax and whats left . That way each year you sit down and fill out a form and you say, they took what . And then you dont vote for them again. Where laz the retail sales tax might be nickelled and dimed and you may not save all your sales receipts and realize what has happened to you. But there are conveniences of doing it one way or the other. We have to take a look at those. These are all efforts to get away from the horrible horrible effects of the income tax and moving to a more sensible neutra
Prosperity. And you heard alvin just say over and over again, consumption based tax. My job on the panel is to try to explain why thats important. Its important because the current tax system treats income that you sai and invest much much worse than the income you can consume. Think about it in this very simple fashion. You make some money. You pay tax on that money. Whats left . Disposable income. Aftertax income. You have two choices of what to do tw the aftertax income. You can consume it right away, or you can consume it in the future. Whats consuming in the future . Its saving and investing. Now, lets think about how the federal tax system theets though two choices. If you consume your aftertax income right away, the federal government, by and large leaves you alone. Yeah we have a federal excise tax on gasoline. We have a federal excise tax on bows and arkansas rowrows, but theres really no federal tax on your income. What happens if you save and invest your income instead . Bet