Generation opportunity to do something really big. President trump has made tax and we have aity republican congressman wants to get it done. This is something that honestly i hope the democrats would support too because it is good for the american people. Would be new tax rates 10 , 25 and 35 . The conservative House Freedom caucus is backing the latest Health Care Proposal as the white house tries to revive efforts to repeal the Affordable Care law. In a statement, the 40 or so howd lot hardline members to hold the blocks the earlier bill announced their support for by w plan crafted the group said that while the new proposal is not a full repeal of the 2010 Affordable Care law, they are prepared to support it. Saudi arabia and russia will meet within the next two weeks to discuss extending those Oil Production cuts designed to firm up prices. The current cutbacks by opec and russia and in june. So far they have not achieved the target of reducing stockpiles below the five year historical average. Global news 24 hours a day powered my more than 2600 journalists and analysts in over 120 cap countries. I am mark crumpton. This is bloomberg. Joe bloombergse from world headquarters. Joe we are 30 minutes from closing trading. Scarlet the nasdaq is that another record high. S p 500 edges towards his own record. Joe whatd you miss . Scarlet a busy day in washington. We will speak with washingtons main man in focus. Ngs are twitter shares are rally with the world of legislation this week would rip up much of doddfrank marks a Pivotal Moment for republican efforts to overhaul post crisis financial worlds. The bill was drafted by Jeb Hensarling. On capitol hill. Take it away. Kevin were here with german Jeb Hensarling. You had a hearing this morning on doddfrank. What would choice act 2. 0 do . The most important thing is were going to promote Economic Growth. I think there will be greater financial stability. Were basically going to replace bill house with bankruptcy. Replace complexity with stability with simplicity. Of all the obama era regulations that have been opposed on our economy none are worse than doddfrank. Doddfrank imposes greater regulations than all the other obama era regulations combined. This is an economy under the Trump Administration that is poised to take off after all years of obamanomics. We have to repeal and replace doddfrank. The way to die do the way to do it is with private capital and let freedom ring. Kevin lets talk love the ending of private bailouts. Leslie President Trump signed memorandums that would review liquidation authority. That came up several times. What would your bill due to address orderly liquidation . Replacet we do is we the Orderly Liquidation Authority and the ability to important Financial Institutions. What happens is it becomes a selfperpetuating phenomenon. The big banks bigger. The big banks have gotten bigger. That does not create more financial stability. We have replaced this bailout authority that doddfrank instituted and replaced it with a new subchapter of our bankruptcy code. The truth is there is no reason why large, complex Financial Institutions cannot be resolved in a bankruptcy setting. But there are improvements that can be made with respect to expertise, with respect to rapid response, with respect to certain stays on derivative positions. We have improved that and that is the way to go because ultimately we want shareholders in counterparties to have the right risk tolerance and not impose that upon the taxpayers. We believe that will help create the balance which will promote more Economic Growth and still make our economy more stable. Kevin lets talk about the politics of this. This is being interpreted by people on capitol hill as more of a conservative piece of legislation than the first go around. Received a timetable for when this legislation will get a vote on the floor . Then what happens in terms of when it heads to the senate . Jeb i would refer you to the speakers comments this morning. I think he said soon. Soon is soon. Kevin but what about in terms of as you negotiate with the what is the guess, timetable in terms of passing this legislation . Jeb i expect we will bring it to the house floor in short order. The senate will do with the senate is going to do. As 101 teaches us bsolutely. ,very conversation i have had this is a this year priority. That is what we are driving four. We have too much capital locked up sitting on the sidelines. Entrepreneurship is at a generational low. I want to get into about the Consumer Financial protection bureau. You have called for the director to be fired. Your committee has taken issue with how what would your legislation do anderms of addressing it what tools and message do you have for the white house . Cfpb is the most powerful and unaccountable federal agency in the history of the republic. Its one of two new federal agencies since the new deal where it has been ruled unconstitutional. We have completely lost checks and balances and due process. Anyone who agrees in the democratic process cannot believe in this particular institution because one unaccountable official can decide what mortgages we have on our home, what credit cards go into our wallet. What we would do is create an institution not unlike the federal trade commission, which is a pure Law Enforcement agency. The most important way to protect consumers is through competitive, innovative transparent markets. He should have been fired yesterday, the day before, the day before that. I dont have the ability to fire him. I certainly encouraged the president to do that. Ability to do it. Unfortunately consumers are in many ways were soft. Bank fees have gone up. The ranks of the unbacked have gone up. Kevin another thing that your committee is looking at is investigating what went wrong with wells fargo. Democrats have made the case that the reason you need doddfrank is to prevent issues like what happened at wells fargo from happening again. But you make the case that doddfrank and regulators andaps dropped the ball that this is perhaps a system that should not have been made. How would your legislation prevent wells fargo from repeating, and what is the status of your investigation . Jeb number one, it is the work of congress to make the law. These negative branch is supposed to enforce the law. I think it is fairly clear that the cfpb was asleep at the switch. We produced documents that showed they didnt even lost their investigation until after wells fargo selfreported. This really had to do with an investigation by the l. A. Times, the Los Angeles City attorneys office. All cfpd majorare two dozen consumer laws on the books. We would have an agency totally devoted to enforcing the law, to really be a cop on the beat. Unfortunately what happened at wells fargo is basic fraud and theft. It has been around since the dawn of man. Occ had regulators. I dont know why they did not do the job. Maybe it was because they were too busy making the law. Maybe it was because they were theirsy renovating Luxurious Office space, which is going to cost us 200 million. Maybe they were too busy fighting off the charges of Racial Discrimination within their own agencies. Question, last question. Announcedeform just regarding copperheads of tax reform. Do you have any concerns about how to pay for this in what you make of the tax proposal . Jeb unfortunately it was just released and it literally came from committee and literally came from the house floor so have not been able to see the plan. But i heard it contains things system. S and a flatter im probably already there but i need an opportunity to study it. Nothing says Economic Growth quite like fundamental tax reform. Have the highest Corporate Tax rate in the industrialized world. If we want to bring jobs from overseas and bring them back here were going to have to dramatically cut the corporate rate, business rate, and middleincome workers need a fairer, flatter system. I havent been able to study the plan as of yet but from what i know about it, i am intrigued and im glad the president is offering it. About yourme ask you recent trip overseas with House Speaker paul ryan. You visited several countries including the united kingdom. Talking about the importance of nato. Tell me about your trip. What did you learn, what did you make, and how important is nato in this commitment to nato as we move forward . Jeb number one i think nato is incredibly important. Clearly the russian bear is on the move. Kevin how so . Jeb lets look at crimea and ukraine. Lets look at the history. We came from estonia, a place that was occupied by the soviets for roughly four decades. Every Single Family has some story about some relative being shipped to the gulags. It is tragic what happened in eastern europe. We ultimately see from mr. Putin is a desire to recreate the soviet union empire. And it is nato that is standing between him and that particular goal. I what to give our president Great Britain great credit for challenging other nations to commit to 2 gdp. And frankly, a lot of them are getting there. Others are on their way. I dont think if our challenge from the president wasnt there they would do it. I think were going to see a better defense to nato and hopefully be able to keep russia in check because they are not doing anything that is going to be helpful to u. S. Interests, much less the global cause of freedom and prosperity. Jeb, we could talk forever but we appreciate your time. I will toss it back to my esteemed colleagues in new york. Joe that was congressman Jeb Hensarling with kevin. Scarlet 15 minutes to go before the close. U. S. Stocks have given up a lot of their game. We are still positive but as you can see, a gain of only eight points for the dow. S p 500 clinging on. Nasdaq at a record high. From new york, this is bloomberg. Letswhatd you miss . How will the taxcut proposals impact to individual filings . Lets ask a partner at ernst young. Thank you very much for joining us. Not a ton of details. We dont even know the exact income ranges of these three new tax brackets. From your perspective, what are the key principles that you are taking away from this that will affect individual filers . Top tax bracket of 35 of ordinary income, right now it is 39. 6 . Rates ofs it back to 2012. It has repeal of the 3. 18 Investment Income tax on Investment Income on people who make more than 200 and that incremental tax included in medicare just. 9 on high income individuals. Those are key on the income side for individuals. Deductionstemized except for Home Mortgage interest and share contributions. What does that mean . No more deduction for real estate taxes. No more deduction for state and local taxes. Scarlet that will hurt for a lot of people. Potentially a higher standard induction. That means for middle to lower income people perhaps the losses made up for with a standard induction. But for higher income individuals, could be more costly. Scarlet for higher income individuals they can also perhaps rework things so that they can create a pass through and get that lower Corporate Tax rate. What is to stop Joe Weisenthal from forming Joe Weisenthal . Elda he needs to have a business and get paid. We dont have any details on whether all the income through that pass through would be subject to the 15 . Or with some of it be deemed earned, like compensation and tax at your highest and the ballots what we saw in the house gop proposed 25 had on passthroughs after a certain amount was deemed as reasonable compensation. What we heard during the campaign from the president was a 15 rate only if profits were kept in that pass through business and not take a nap. We dont have any of those details right now. Joe i want to go back to the elimination of state and local tax deduction. This is an issue for a lot of viewers. Many of whom in new york or new jersey or high tax states, california. High tax states where this is a significant deduction on their taxes. For ag of a deal is this lot of high earners . You would think it impacts all hiner is living in those states. But some of those high earners are already caught in the alternative minimum tax net which means they already lost part or all of the benefits of deducting those taxes. Someone out there who says i am reading there is a repeal in this proposal, that maybe sounds ns is you all that mea were not allowed these deductions anyway. For those individuals it might not have any impact. For those who pay a significant this is ahigh income, huge number if they were in a high tax state. Scarlet what are you hearing from clients . Wants to someone who form their own company and is looking to do so but is hesitant to pull the trigger because they dont know what policy is going to be in place. What would you say to them in terms of go ahead and do it or wait a couple years . Elda there is a lot that currently has a flexibility to change the former business. You dont have to necessarily feel locked into the form you start your business. There is opportunity to change. It is hard to imagine at small pastors, would be taxed any worse than corporations at the end of the day. Corporations might have a 15 tax but when it needed and that is already 35 . Much,lda, thank you very helping us break down the ramifications of the announcement today. Scarlet coming up, the gops effort to repeal obamacare might have new legs. We will have the latest on what is to come to replace obamacare. This is bloomberg. Scarlet the conservative house of Freedom Caucus which derailed has formally redo what changed . Lets ask our reporter on capitol hill. This is been a day of big announcements but not much detail. What details do we have on what changed to convince the Freedom Caucus to sign on this time . The Freedom Caucus endorsed the ahca after what is known as the macarthur amendment which allows regulation that insurers have to provide a package of potential Health Benefits and every plant in the other insurers are not allowed to charge sick people or people with preexisting conditions higher premiums on the basis of their status. The Freedom Caucus want to these waivers because they believe it will help lower costs. Senior republican aides in the house are telling me this helps in the sense of brings a block of conservatives on board but they caution it is not a slamdunk to pass the bill endorsement. E hfc a lot of moderates are still concerned about cost to subsidies, medicaid. To subsidies and medicaid. Joe heres a question i have, and maybe i havent seen an answer. What is the incentive for states if this bill goes through to weaken the projections of their own citizens when it comes to people with preexisting conditions . The short answer is cost. What would happen here according to Health Economists is that Insurance Companies would be able to charge people lower premiums, lower prices for insurance policies because they would have to cover less and because they would be able to price out sick people from the market and not necessarily have to cover them as well. It improves their risk for in terms of how i having fewer sick basins and more healthy patients they can now charges skimpier plans at lower costs. I think that is the incentive. The incentive not to do it is that it would harm the people, the sickest and poorest who need these protections the most. President e know the wants to get something moving on a Replacement Health care bill. Where does this put up in terms of the timeline the white house projected and what is plausible . Sahil no timeline yet. He white house has been saying for a long time and wants a vote. But they dont control the floor schedule. House Republican Leaders have not made any announcements on floor timing. The Leadership Team are talking to members now i am told, especially the moderates. One source telling with the focus is all on the moderates. The conservatives are mostly on board. , theke to a few of them new changes dont convince them. Tom reed of new york told me just moments ago right off the house floor that he was in favor before the changes, now he is undecided. This is a big danger for republicans. They gain some people and lose some moderates. Ahil, we will have a lot more on this topic tomorrow at 10 00 a. M. Will carolina congressman be on talking about this theoretical bill coming through. Scarlet the market closes next. Take a look at how stock indexes have given up their gains. Modestly lower now. Dow losing 17. S p off by one. This is bloomberg. Scarlet we are moments away from the closing bell. Whatd you miss . U. S. Stocks giving up gains peerages closing short of a record high. Im scarlet fu. Joe im Joe Weisenthal. If youre tuning in life on twitter, we want to welcome you to our closing bell coverage every weekday from 4 00 to 5 00 eastern. Scarlet im just looking at the screen for the nasdaq, closing just negative. No record high. Unchanged when it comes to the present mark. The Dow Jones Industrial average losing, and the s p 500, little change on the day. A lot of headlines, starting with attacks headline. Joe you cant read too much into this, but the news of the. Ax cut torlet you have telecom up present, all of the on the strengt