The fight for tax reform is heating up on capitol hill and one of the chief players is standing by with david. David thank you, the constitution says revenue legislation has to start with the house of representatives, making the chairman of the house ways and Means Committee the architect of tax reform. Kevin brady of texas comes with on aday, getting to work bill that has been approved. You said you believe you have the votes to get them as early as thursday for the full house to approve the bill, but that is not the only boat because after this goes to the senate, it has to go to conference, and go back to the house again. Lets talk about this state and local Tax Deduction. If it comes back, where it has no state and local taxes, can you get the votes in the house again . Representative brady it will not come back that way, i made a commitment to our members and the house that he will restore the state and local tax reduction up to twice the national average. I think families across the country are especially important and i have made that commitment that the final vote on the final build to the house will include the state and local property house reduction. David as you know, the senate has rules to comply with. One of the ways in terms of how big a deficit they had or how long is to eliminate that socalled assault deduction. Assault deduction salt deduction. What if you do not get tax reform at all . Rep. Brady look, i am confident the senate knows the priorities of the house. I certainly do, so that commitment to keep the property concrete. Ion is in i fully expect that to be the case. David to drive it home, that is a redline you will not cross . Rep. Brady it is. David thank you. Lets talk about other things you might do to help the senate. What might you consider for them roles . Within their for example, would you consider something above a 20 Corporate Tax rate . Rep. Brady right now, we will let the process go forward. I appreciate you starting out with this is not the final vote in the house. The senate has their work to do and will come together on a conference committee. This helps improve the legislation. We are going bold, both in becoming competitive around the world and in how we stumbled by the tax code. None of that is easy. At every step, including the senate and the final conference, really critical. I am not prejudging a lot of things at this point. Only that we now, because we work with the president and with the house and Senate Earlier on one tax reform approach, we are both driving that direction. David i appreciate the fact that there has to be compromise on both sides. But it sounds like the 20 number is not in concrete the way this reduction is. What about it is becoming effective in 2018 versus 2019, is that concrete . Rep. Brady 20 is where both the house and senate are focused , certainly the president is, as well. Here is why. We need to be competitive at home and abroad. That rate lays a key role. We are also redesigning the International System so our companies can compete and win anywhere, including at home. The sooner we get that, those rates and redesigning them, the better for our u. S. Jobs. You focused on as much growth early on, becoming competitive. David i want to talk about growth, but before that, lets talk about this bird rule on the senate side and not the house side, im sure you are happy. Rep. Brady thank the lord. David this goes past the 10 year part and says you about deficit passed the tenure part. To comply with that, are you willing to come are you willing to compromise at the tax cuts stopping at some point during the 10 years . Rep. Brady on the byrd amendment, what happens in the second decades, they will work on that to bring the bill out of the chamber, so lets look at the approach they are taking and then we worked at the run the conference side. House perspective, it is critical to take this momentum we had today, deliver a strong vote at the end of the week, make sure the senate knows when they pass the bill, we have to pass it to the president s desk. David you are perspective of butbird rule byrd rule, at the same time, if you are going to get growth, how much certainty do you have to have the tax code and how do you balance those issues . On one hand , you can save money by making it less certain. On the other hand, it is harder for businesses to plan. Rep. Brady exactly right. There is a balance between the byrd rules, then usual budget rules the senate combines in that permanence and i have long said that you get the greatest growth for the greatest number jobsars with permanent can come back to United States, businesses and families can invest, so we will go for the greatest amount of permanence we can get in the rules we have to comply with harry david i want to talk about Small Business comply with. David i want to talk about Small Business. They have said they can support your proposal no. What are you your proposal now. Order the biggest differences between the house and senate and how you deal with the past rules and how they affect Small Business . Rep. Brady the good news is there is Common Ground between the house and senate very we put together a design that, first, gets a 40 tax cut to the first 75,000, main street businesses, whether the local dr. Donut shop. Secondly, we allow businesses to choose the best approach in simple form, a 7030 split to provide relief, or they are capital intensive companies, they can get more of their business income of that lower 25 rate. The senate takes a different approach, a deduction up front for businesses and then they plow their tax relief on to the individual side, where most pay their taxes. There are different approaches. At the end of the day, im confident we will have a strong progrowth bill, not just for corporations but Small Businesses and pastors. David you have mentioned growth several times. The president has said this is about growth, you say it is about growth. What kind of growth projections are you saying if you get your version of tax reform . Rep. Brady it varies. Growth, some see gdp. 5 for to three today the next two or four years, and then settling in. Here is what we all know, we will not be stuck with the 1. 8 growth model that most economists see over the next decade. So we are going in on growth on the business and family side havese the American People to have stronger growth than what we have today. David how confident are you in those projections . That is the underpinning of the tax reform package. How confident are you . Rep. Brady heres the good news, we know it is proven. We sought in the reagan reforms and john f. Kennedy tax cuts. We saw local economies really take off. More portly, we know our business is compete more importantly, our businesses compete worldwide. Businesses make them competitive in the big way and that is a big growth factor. And then riding off of that Capital Investment in plants, equipments, software, technology, big growth driver, as well. I am very confident about the growth. David if you are confident in growth rejection, would you consider legislation that says if we do not get that growth, we will revisit tax cuts because we do not get what we thought we had . Rep. Brady im confident we will get the growth. Reasonway, if for some it does not happen, i know it well, i would go deeper into making this more progrowth. I will tell you now that the 20 rate is the lowest in u. S. History. The lowest to pass in modern history. The redesign number code makes leapfrogs and so i think there is going to be very strong economic growth. We are going to break out of this stronghold in the past decade. David some people talk of politics as something not to deal with but that is how we come together in a democracy. Lets talk about the politics. There is an election next november. You will be up for election and other members of the house. Give me the sense of the political consequences if you do not get tax reform through. What do you anticipate . Rep. Brady i will tell you this , republicans that i work with on this, the president , as well, this is not about us. This is about the American People. Seenare they have not paychecks increase in a decade. Our Business Investment has stalled out in some ways for years. We have got to get the economy going to give people hope. That is what drives. Clinically, that will take care of itself. We deliver on a progrowth, tax form package, politics will handle itself. David 4 of kevin brady, thank you. Shery ahn . Representative kevin brady, thank you. Interview, lets check on first word news with Mark Crumpton. At todays House Judiciary Committee hearing, Jeff Sessions maintained he was unaware of brush and contacts with Donald Trumps president ial campaign. Democratic congressman jerry nadler pressed sessions on report he rebuked George Papadopoulos for suggesting a meeting with the trump team and russian president Vladimir Putin. He made some comment to that effect, as i remember, after having read it. My answer yes and no, i do not have time. There are reports to shut george down when he proposed that meeting with putin. Is this correct . Yes. I pushed back, i will say it that way yes . Mark attorney general sessions insist his story has never changed. In u. K. , a warning from russia to Prime Minister theresa may. She told Vladimir Putin that britain will retaliate against meddling in elections saying we know what you are doing and you will not succeed. Iran says the death toll from sundays earthquake is that ive hundred 30, at 530. The iranian president says his administration will probe the cause of so much damage to the buildings constructed under a state owned program, along with the border with iraq. In spain, the Prime Minister says the n crisis the Catalan Government has the tools to defend itself, calling it a warning to proindependence parties running in n elections catalan elections next month. Even if they win majority, they know the state can limit their powers. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am Mark Crumpton. This is bloomberg. Sherry thank you. Coming up, we catch up with republican representative Chris Stewart of utah. His thoughts on attorney general Jeff Sessions and his face up with the House Judiciary Committee over russias involvement in u. S. Elections. This is bloomberg. Sherry welcome back. This is Bloomberg Markets. I am shery ahn. David i am david westin. A third day of losses. Taylor riggs has the latest. Taylor we are coming off the lowest of the session, but kind of a broad base selloff, not sure what is going on. Our Producer Price index came in hotter than expected, maybe that is raising concerns that the fed may raise rates higher than expected. Done . Reform going to get markets are waiting to see if that happens, so a lot going on as we dig into numbers. 665 six, still talking about ge, having its worst twoday decline since 2009. As you can see in the white line, we charted ge relative to the s p 500, in blue, outperforming by five percentage points, relative to the industrial sector and orange. Ge still taking a heads and , and it seems investors are not quite happy with what they heard yesterday. ,eceipt autoparts rallying after the Third Quarter results showed signs of progress for company, trying to revise their business after being hit by online competition and unfavorable weather. Advanced auto parts is up as much as 25 this morning, pushing it a bucket ski 100 day moving average, a bullish signal for the stock. I will rapid appear, g btv 9188, charting the difference between the twoyear treasury and 10 year treasury yield. We are now down below that 70 basis point mark. We hit it a few times last week, but otherwise, you have to go back 10 years until 2008 to see these spreads this flat. All eyes on that yield curve. Sherry taylor riggs, thank you. U. S. Attorney general Jeff Sessions is facing questions before the house judiciary lied ore, denying he misled congress about contact with russia by people involved in Donald Trumps president ial campaign. Joining us from capitol hill to discuss is Chris Stewart of utah. They have been conducting the Trump Campaign and russia probe. Congressman, thank you for joining us. The house until Community Committee has been focused originally on the russian meddling issue, but it seems to have branched 10year directions. How far along branched 10 new directions. Half are a lot of are you in the investigation and how much further will it expand . Stewards on the core question, did russia interfere . Clearly, they did and how do we stop that from happening in the future and on those questions, i think we are well into the process and your conclusion. There are other elements from our original investigation i think many of us want answers to and that may take more time. David are you confident that the attorney general sessions is doing all he can do to assess the degree of damage and remedy it and make sure it doesnt happen again . That was just asked by the judiciary committee. Rep. Stewart on those questions, do we understand the damage . Do we know the remedy to stop it again . I do believe the attorney general has done everything we could ask. That is the primary question for the American People. At the end of today, we have to look at future elections and not feel they have been manipulated or will be manipulated by a foreign government. Once again, there are other things we are concerned about. Questions regarding someone asking, were all the officials honest with us for the committee . Ways, i think,me trying to protect the Current Administration . Those are the things we want to dive down to get more answers. Sherry attorney general sessions also saying he now recalls dissipating in that meeting with george happened up less George Papadopoulos. How does that complicate efforts are your party to move past the pressure issue . What,tewart you know when people listen to attorney general sessions, when you see him before the senate and his testimony today, i think it honest person has to look at him and say he is being sincere. He clearly was not trying to deceive. He was answering a series of questions about incidents that happened before. I believe he thought he was answering that question put to him in the Senate Committee to fully and rephrasing the question slightly, you might have a different answer, and under rephrasing the question, he has given a different response. Trying tohink he was be deceitful. I do not think it is true and it would not have helped anyway. David how did we get to this place . I think the American People say, i do not understand how we got to a place where the russians had so many activities going on to try to interfere with the election. This is under a democratic president s, president obama, though president Trumps Campaign that tainted with it. If legislation that can help it . Rep. Stewart that once again is a great question. I was in moscow last summer, and when i came home, i did numerous interview saying russia will mess with our elections. Theres no question it would. We knew it based on what they did in europe and intelligence we have monitored. People would ask, do they want one candidate or the other . They really do not, they went to break down institutions, faith, and democracy, and they have done. It is the most unfortunate outcome. Most of americans have the view that russia interfered and in some cases, helped elect one candidate over another. That is distractive for our political body and for the American People and these institutions. That is the thing we have to be able to correct and push back on. By the way, they are still doing it. Look at what they are doing it Eastern Europe and poland. The social media, the bots they have deployed, the social narrative it is so invasive and wears people down. Sherry there have been complaints by democrats that gop members of your committee have been thwarting the Russian Investigation by refusing to issue an enforce subpoenas for documents. How do you respond . Rep. Stewart it is nuts. Simply untrue. Look, there are some of my democratic colleagues who would love for this issue to be carried on into the next election in the 2018 midterms. I think we owned the American People in response as quickly as possible. That does not mean we went to brush things aside, or asked appropriate questions. Of course we do. For them to say we are trying to dodge or stall this or not be willing to subpoena or ask questions is simply not true. David republican representative Chris Stewart of utah, thank you for joining us. Still ahead, we will dive deeper into tax reform and talk to Henrietta Treyz. Live from new york, this is bloomberg. This is Bloomberg Markets, balance of power. I am david westin. Sherry i shery ahn. We are seeing another day of losses, but third da