Also, toyota talking about under the hood, keeping its top spot in auto sales rankings so far this year topping rivals gm and volkswagen. Japanese car sales topping 7. 4 million vehicles. Thats up. 1 from a year ago. Strong sales in the u. S. Offset slowdowns in thailand and china. Joe, whats going on in washington . In washington this week the redskins are probably dealing with what was a disappointing because they were ahead. They were ahead by two touchdowns right at the beginning of the second half and things went south quickly. So you only saw five minutes of the jets game. No, i know what happened. Congratulations. Thank you. Im not looking for congratulations really. Its been a long time. People are talking about 25 years since the joe montana beat when the bengals got and i asked my kids to watch. They were watching when Carson Palmers knee got blown out on the first play. They were watching last year when houston killed this really they really looked good yesterday. Typical of the new york papers, it was geno. It was genos two interceptions. It wasnt the 49 points. Gosh, if geno. Its always so selfcentered. The jets brought this on themselves. It wasnt 49 to they really looked good. Andy dalton. In washington this week, i asked andrew, is there anything i can talk to you about. World series, nfl. Anything but henry sorkin in central park. Homeland from a week ago. Not a single nfl game. I saw my children and i saw captain phillips. My children were there. We did a lot together. We skated. We did a lot. We did some tennis, indoor tennis. Indoor . Indoor tennis. It was cold outdoors. In washington, budget talks set to begin. An editorial in the wall street journal caught my attention. Do you have a column tomorrow . I do. Is this your column . Im going try to get you to write this column because we need to try to i really do want to rise above and i really do want to win the u. S. Back. How do we rise above the worlds other economies . How do we compete with the other worlds economies . How do we win the u. S. Back in terms of manufacturing and jobs . What got me this weekend was a report highlighted in the wall street journal called u. S. Corporations pay 35 . The reason for this is that the myth still persists that we have a 35 rate but nobody pays it. Heres one of the reasons why. There was a study done by the gao that focused on 2010, one year, came up with 12. 6 . Go back down. Im going to read it. Dont panic. Senator carl levin, a one man wrecking crew, this is in it, of american i like that. Senator carl levin, a one man wrecking crew of job creation, declared that this study that came out of 12 declared that americas large profitable corporations are paying a lower tax rate than our teachers and firefighters. This went back and said, look, this isnt the way to do it, not one year, because it followed the recession. It followed 2008 and 2009. You remember ge and other corporations . The entire Financial Sector had a lot of writeoffs. He did a different study. He went back and did 2004 to 2010, he counted all taxes paid worldwide, including state, including foreign, and the effective tax rate of all u. S. Corporations exceeded 35 from 2004 to 2010. The other thing he found out was since 1997 all the leading economies of the world, 31 out of 34 have cut their Corporate Tax rates to attract job. Did you say that includes foreign taxes too . Includes foreign taxes. I mean, dont we only care about taxes paid here in the United States . Why, because thats all we collect . Yeah. It doesnt matter if we collect, it matters how competitive it matters if youre looking at u. S. Tax receipts. If youre looking at u. S. Doesnt it matter whether u. S. Corporations are tax zblabl it matters if theyre paying in the United States if thats what they produced and paid in the United States. Youre talking about the tax rate that theyre paying globally. A lot of their operations are outside the u. S. We dont control whats outside of the u. S. Theyre going to say theyre basing themselves in the what they collect has nothing to do with what the corporations are paying. In the United States . Theyre paying above 35 total. Just so were clear, youre saying theyre paying above 35 everywhere in the world on average . On average on money they make theyre pay 35g . Then youre not going to like this comment. If their ultimate rate is over 35 globally, the argument that you need to then lower the rate in the United States to be competitive becomes less less important. No. Theyre paying you look at what were paying on what we earn in the United States. Right. Our Corporate Tax register everywhere else is closer to 21 total. Ours is 35 total. Our guys have to pay 35 around the world. But if youre saying that with the global so like apple if the global average is 21 but theyre pay 35g does that mean theyre paying 45 here. The rest of the countries, thats what theyre paying on their total earnings for investments. Were paying 29 . Im he not saying im not looking at receipts and saying theyre not paying their fair share here in the United States. There are reasons why they have operations in other parts of the world. We know thats true. Theyre paying taxes in other parts of the world. I dont understand why we include foreign if youre looking at what u. S. Corporations are paying. Thats the only part that we can control though. If its stuff that theyre paying to other nations and things that go in, i dont understand why we would because youre trying to see out of total earnings we dont control what they pay to foreign nations. Thats nothing to do with us. Thats foreign tax laws. Ours is 35 here. If you want to look at what they paid, i wouldnt include foreign. Id love to see what they pay to the u. S. And other nations. They dont pay stuff to the u. S. Because were but were induced to move our operations over there. I would like to see the breakdown between what theyre paying here obviously they pay less on average in Foreign Countries but the total that they pay us means they pay above 35 here in the United States. Right. I would love to see the breakdown. See what i mean . Like but they cant be competitive. They cant be competitive with the rest of the world until we pay i think that is a smart study, 2004 to 2010 to see what they were paying. Wouldnt do any good to look at what they were paying in the United States. Sthant what the 2010 mums are . Just the u. S. . Look, the 35 plus is what youre paying on earnings. Right. The rest of the world is not paying 35 plus. I would like to compare apples to apples. If it comes out above 35 with lower agreed. I would love to see the actual numbers. The 2010 i thought it was just u. S. That carl levin was looking at. I would love to see the just u. S. Its lower than everywhere else. Youre talking actual versus effective rates. Its a problem and were never going to be competitive. I would like to lower Corporate Tax rates. Thats the one thing that we should do is lower well i agree. U. S. Corporations pay 35 ive got to study it a little bit more. Study it more. Instead of borrowing more money from china, all the things that we think of that were going to do, borrow more money from china to build bridges to nowhere, borrow more money, doing all of this, the one thing the government can do, if you want to close loopholes, fine. Im in favor of that. Close loopholes but lower the Corporate Tax rate. Simpson bowles said that too. Theres a lot of Different Things you could do if you close the loopholes. Some corporations have fought back and said you cant close those loopholes. That would be the argument. When apple was getting grief in front of, again, i think it was carl levin apple pays more taxes than anybody. But theyre also paying what they were arguing is theyre not paying any taxes to these foreign there was outrage that they werent paying taxes to Foreign Countries. You have to add up all the taxes you pay everywhere. It makes no sense to if half of your profits are coming from abroad, youre not going to pay taxes right. So if you do the calculation, why would it make sense to look at a corporations tax rate just on what they pay here other than you saying youre looking at the receiving end but not the paying end. But when people look at ge, for example, it was about the u. S. Tax rate, not about what they were paying. No, it was their total tax rate. They were saying zero. They were paying a lot of taxes worldwide. Right, but it was zero here in the u. S. Zero here in the u. S. Exactly. It was also 2010. I completely agree with you. Thats why i like the idea of the broad based study. What if only 20 of your profits come from the u. S. . If 20 why would you look at the u. S. Its interesting the u. S. Tax rate versus other places. The competitiveness of the entity itself. If you only pay 20 here, it doesnt matter that only 20 you dont look at what the receiving end, youre looking at the paying end. The amount here versus the other nations. The reason its 80 is because of the lower taxes over there. If youre paying 35 and your rates are lower elsewhere, what are you paying here . 45 and beyond . It must be much higher. It is. Average state taxes 4 , 35 is the federal, you get to 39. Across the pond is where were going to get a little bit of news from the Global Markets this morning where i believe the effective tax rate at least in the u. K. , ross, is well, is it lower or is it higher . Ross, do you want to help us with that . Well, the top rate of income tax is 45 . Corporate. Corporate rate, ross, what is it . Corporate rates, well, theyre coming down. The governments dropping them down to around 20 in a couple of years. 35. But then people say we dont pay 35, but we do pay 35. Thats the thing. Thats the whole point. Piece. You do pay 35 globally. Right. Okay. Ross . We have different rates as well for Smaller Companies and bigger companies, but theyre trying to set corporate rate taxes as very competitive within the g10 is the cameron governments view. Meanwhile, here we are, guys. Just over two hours into the trading day. We are, by the way, an hour earlier. We changed our clocks. Theres only four hours between this week between us and you. Were closer in terms of time difference. Pretty even stevens. Five to five theyve outpaced. Nikkei rebounding from its big fall on friday. Up 2 today. Doesnt really follow through in europe. Little bit of caution. The ftse 100 was up eight points on friday. Slim gains. Just up four points. Ten points for the xetra dax. Cac quarante. Couple of stocks weve heard. Lets get with tnt, logistics company. Ups was trying to buy this company in january. The European Committee blocked it. They may be working around it and the stock is up 4 . They say the european economy is recovering and its fragile. Bankia, they had possible bailed out. They had a 19 billion euro loss. Theyre back into profit. The bread and butter lending business still suffering. Low Interest Rates eking into margins. Credit decline. That stock down 3. 25 . A storm blew here yesterday. Up to 100 mile an hour winds in the u. K. The last time we had storms of that magnitude was the friday before black monday 1987. Fortunately things are a lot better today than they were back then. Joe, heads up for you. Listen in on this. For the desert that is european sporting action, as you have rightly pointed out, we had some rain yesterday. 49ers playing the jaguars at wembly. Thank goodness we had some decent sport to look at over the weekend. I know you were concerned about that. That really wasnt a Football Game yesterday, ross. In fact, the jaguars kind of played like a soccer team. What was the score when it was all over . I think it was like 4210 to the 49ers. Oh, their record is like they havent won yet, have they . I dont think yeah. That was mean. The one we sort of send you the worst game. Its like we dont even care whether that game was played here, you know . The 49ers are in the super bowl last year and i dont think jacksonville, one of the last is there anyone else undefeated winless . I think may be the last winless team, i think. I do have give you a taste throw the ball forward though. Youre allowed to do that. The weird thing, you can catch it with your hands, you know, instead of like you know, who even thought of that . You can only hit it with your head . Thats like i dont know. You can use your hands. Do you have hands, you might as well use them, right, ross . Theres a lot i dont under just the forward thing. Anyway, it was nice. It was nice. Nice little cut away. Better game for you. You had an earlier won in london that was a better game. Thank you. Yeah. Both those teams had lost their first five games of the season. Yeah. All right. Well, you know, were not goings to send you our best games. We wouldnt give you the bengalsjets game. 499. Did you watch that . I was busy watching the redskins lose. I watched that. They had a stlot. They did. Did you notice how many dropped passes. A lot. They looked bad. In the second. In terms of the receivers. Griffin didnt look great. There was a punt too, the guy should have caught it. Should have been a first down. There was a shank. A 15 yard punt. It got ugly. Depressi depressing. Do you understand my point here . Of course. Does it matter what the receiving end i went back and looked at it. Carl levin, it was foreign included. They paid 16. 9 with foreign taxes included. Youre talking about total whether the corporate you guys are love you know, you worry about what the government takes in. Receiving end. Im talking about how much youre paying to be competitive. How much youre paying in the u. S. And other places. No, how much our companies are paying to stay competitive. If youre paying 35 plus total, 35 of your total earnings are going to taxes. My question is if youre looking at broader terms, what was it 2004 to 2010 they paid what . 35 plus. 35 plus on a worldwide basis. Right. The question still becomes what are they paying in other nations and what theyre paying here because the competitiveness is what youre paying here versus other places. Thats why theyre moving so much off shore. Those numbers didnt exist there. It didnt say what they were pags here versus worldwide. What this is for 2010, they paid 12. 6 in the United States. If you include foreign stuff, they were paying 16. 9 . They were paying higher stuff in other nations if you included that. That was 2010, that was when there was a bunch of writeoffs. Its not fair to look at only 2010. Hes said he would do it. He said 28, didnt he . For the corporate rate. They talked about doing it. You get into the loophole discussion. Were going to do gun control, immigration, climate change. I think you need corporate and individual. Immigration. Hes already raised hes raised the rate on individuals. Do something with corporations. I think it would be a fantastic idea. Of course in this country. You want lower overall theres no argument about that and how you get the overall rate. It would be fairer for smaller corporations that cant afford to have the accountants. You should write a column on it. Whats your stupid column on today . You should write a column on it tomorrow. Im preparing it now. Jamie dimon. Youre leading him. I saw the headline. You couldnt get this through your editor. I can get any no. Not arguing for lower Corporate Taxes. Thats easy. By the way, if you havent figured it out already, were joined by ben white. He is morning moneys politicos hes my only ally. Youre beltway ben. Morning money. Youre wrong. I agree with the whole argument. Im looking at the statistics. Its the overall burden that matters. A lot of it is based in the u. S. It would be to our competitive advantage to have a lower rate. It matters what samsung is paying. If its an argument about competitiveness you want to be less. We are higher than most places and its not helpful. The other thing we want to talk to you about this morning is whats happening with the health care law. Again, it looks like there are some major glitches over the weekend. All 50 states got shut down over the weekend. What happened . All the ones that are on the federal exchange. Healthcare. Gov went down yesterday. This is not the first time weve seen significant problems with the federal website. State exchanges went okay. You have a pretty disastrous situation at the federal level. You need to start running up the numbers on people signing up before the march 31 deadline next year because Insurance Companies need to start racking up premiums so they can insure a lot of folks, the sicker folks coming on. The biggest problem is you need a lot of young, Healthy People signing on to make the numbers work. Theyre not going to do that if they come to a website that doesnt work ever. Theyll give up on it. Now you have a lot of democrats saying we need to delay the individual mandate, the open enrollment. You have a series of technical problems and fundamental problems that are creating serious questions about whether this thing is going to work. The front page of the wall street journal today says its an issue because theres nobody whos in charge. There is a lack of direction. A lot of different places. Is Kathleen Sebelius ultimately in charge . Not really. She doesnt seem to. Now its jeffrey zions who is sort of the hedman at the white house to get the thing running again. Sebelius doesnt have all of the answers on the technical side. I dont know the extent to which she knows whats going wrong on the technical side. Youre right, there was no one contractor in charge of making sure this was fully operational by day one. You cant penalize someone if they cant they cant buy it, right. They have to delay this. You have Senate Democrats who are running for reelection, you know, mary landru, mark prior, folks who are in stuff red states saying lets delay this. The white house is terrified of delay. They think it undermines the entire thing. It will start falling apart if they delay. Youre absolutely right. How do you require somebody to buy something you wouldnt require somebody to buy a book on amazon if they is this a good headline or bad headline. Obama unaware. Its a terribl