Reality. Obviously. But look, when he came in place and you spoke about it the expectation was domestic policy would be hard to move the needle much but Foreign Policy could be very volatile. Theres been learning as katty suggested. Theres no crises so far but the substantive issues hes handle in a way whether you like or not you can say its been competent. Charlie we conclude with the director James Ponsoldt with his film the circle starring emma watson and tom hanks. Technology sort of can give a. To who we are for better or worse. Ive heard people say it can amplify your humanity. Whatever that means, and the aspirational qualities the terms people use connectedness. Its a pseudospiritual bent where its us trying to make better versions of ourselves through technology. Charlie the Foreign Policy and the circle. Funding for charlie rose is provided by the following and by bloomberg, a provider of multimedia news and Information Services worldwide. Captioning sponsored by Rose Communications from our studios in new york city, this is charlie rose. Charlie we begin with the overhauling of the u. S. Tax code. The proposed were dramatic and call for lower rates for individual and business and one outline leaves key detail incomplete and represent the first move to begin negotiations with congress. Joining me is Dennis Berman and peter coy of business week and Damian Paletta of wvpt wsht they introduced changes to the Corporate Tax rate the rate businesses play from 35 to 15 and also allow a lot of Small Businesses that pay through the individual income tax system to use the 15 rate as well. They think that will create more hiring and investing and more money to slosh around in the economy to create more revenue and then on the individual new york tax side they proposed eliminating the seven tax brackets that exist and replacing them with three brackets and incentivize people to no longer itemize their deductions and a host of things they think will help the middle class and lowincome people. Charlie do most think it will stimulate growth . People think if you cut taxes inevitably people and businesses will have more to invest but if you cut this much and leads to a cut in revenue one forecast was a 5. 5 trillion drop in revenue in five years. Will you create such a big hole in the deficit it harms Income Growth in the long term. Thats the big debate well have. Charlie add to this, dennis. That onepage document was remarkable in its brevity. If i wrote a seventh grade it may not pass mustard there but with a number of intentions. Charlie a number was rumored before. There was detail about the specifics. Fresn for instance one thing is important to people who live in states like california and new york for instance charlie where they pay a huge amount. At the end of the document which said well start doing a listening tour around america to hear what people have to say which seems sensible to me but in my mind was an overt admission like this is just the start of the negotiation and we know from following trump if you start you start at the extreme end. Charlie help me understand this. The president has said repeatedly in interviews well do health care next and then taxes and deregulation but the same Time Health Care and then taxes and then well do infrastructure. The thought was the health care would help pay for the taxes. Clearly thats not happening anymore. It seems as though this tax plan is not going to achieve what trump said he wanted to achieve during the campaign. He said he wanted to actually help the middle class. This was going to be no absolute tax cut for the rich is what Steve Mnuchin said and theres a change in the standard reduction. The first 24,000 you earn could be taxfree which is nice. But compare that to the enormous cuts that will benefit the rich. Getting rid of the estate tax entirely, by the way. A controversial point which is paid almost exclusively by the richest americans. Theyre getting rid the tax rate goes down to 35 . The biggest one is the id ya idea of passthrough businesses doctors and lawyers and theres several types of passthrough business would qualify right now they pay the personal income tax rate on whatever profits theyre businesses make. Instead of that theyll be able to pay the same low Corporate Tax rate. It creates an enormous incentive to restructure their businesses instead of paying themselves a salary theyd claim it all as business income and save enormous amounts of money. Charlie donald trump never said he was a deficit hawk. No, charlie, but he can vow and told the Washington Post he was going to eliminate the federal debt. Not just reduce it but eliminate it within ten years. One of the things thats important to remember when you do tax reform theres winners and losers. I think the document only tells us about the winners. The things people will get. We dont know whose ox will get gored which is what happens when you do tax reform. Those are the challenges questions they have to answer at some point. Charlie and he talked about bringing corporate money back home because its sitting in banks around the world. Whats he do and propose to do and announced for that . Hes propose to have a tax holiday. Hey, guys, a onetime deal bring your cash to the u. S. Though its in banks in new york city. Give it from there and well give you a special onetime tax break and get those dollars to work. Charlie will we feel it . One thing to that point is theres no mechanism to enforce it be spent for say claal goods or investment or employment. That to me is the main question from a business perspective, charlie. Is the spending created by the tax cuts going to productive capital uses or used to buyback shares and give back dividends in the way weve seen in the last decade in corporations across the money. Charlie and the price goes up. Its fascinating. Microsoft share count in the last 17 years has gone down 25 . Charlie they buy back. They return the money to the shareholders. Its not creating more jobs and its debatable and probably the answers no. Charlie is it politically feasible . Clearly this plan is not feasible. Its drilling a hole in the bottom of the lifeboat. Its just going to kill the revenue. Now, as dennis said there may be offsets to it and yet the offsets such as spending cuts are hard to imagine. Remember a month or so ago when trump said he was going to cut 54 billion to offset defense. The howls of outrage. Over 54 billion. Thats a tiny amount of money compared to the revenue loss that would come from this. And in order to get it done hed have to show it would not add to deficits beyond a tenyear window. If he cant get that he needs 60 votes in the senate. He doesnt have 60 votes. Hes lucky to get all the republicans which is 52. Remember when paul ryan was a deficit hawk . It seems like days gone by but under the current plan you have the gdp rising to 111 . Charlie if in fact trump had his wishes where would he get the revenue . From Economic Growth. Charlie thats a neutral political idea get Economic Growth to a higher level i think Hillary Clinton was wrong in her campaign because she wouldnt even talk about Economic Growth. Thats something with a base e ec basic appeal but its an impressive goal at 3 growth. Charlie what would it do . More tax revenue to fill the hole but are businesses willing to spend the way before . Probably not. Charlie thank you for coming. Well be right back. Foreign policy when we come back. We continue with a look at President Trumps Foreign Policy as the Administration Near the 100day milestone this saturday. And he surprised the world with the use of strikes over the use of chemical weapons and used economic policies to get president xi to help pressure north korea. The white house has put all options on the table as tensions rise. Then theres questions of ties between the Trump Campaign and russia which comply complicates relations with russia. Much remains unknown with the Iran Nuclear Deal and the Paris Climate Accord and im thrilled to have katty kay and ian bremmer here. What can the president say on Foreign Policy and say this is what is a clear victory, win, achievement . I think the biggest achievement in a sense is that he has learned what he didnt know. He has learned the world is more complicated than the policies he campaigned on. Thats true partly domestically but more true when it comes to the international stage. The fact he sat down with president xi and was prepared to admit there was a learning curve. That has influenced much of what hes done and said on the Foreign Policy stage. He came in with a clear nationalist, populist americafirst a deal and shifted. He is engaging to get results for america. Rather than one specific thing hes done i would say the most important thing is the learning curve hes gone through and realized hes going through. And no agreement with that from a structural perspective but he got rid of the Transpacific Partnership and got rid of it. Bombed syria. Charlie he didnt have to get rid of it because it was never achieved. No, but americas allies in north america and south america and he comes in and says its dead and kills it. Very different than saying hell make china a currency manipulator. Didnt do that. Something had he did, clearly the u. S. Russia deal on chemical weapons abrogated or put in place in 2013 the Syrian Government uses chemical weapons and he engaged in strikes and the most important meeting of his presidency so far with president xi jingping was treated with a level of dignity and brought themselves time with north korea. They got the chinese already be prepared to respond with great pressure against the north koreans. Theres a lot of places where trumps made mistakes in Foreign Policy in the way hes handled meetings and phone calls charlie is this early trump or the last week or two as he reaches the 100 days and is he still making serious mistakes . I think hes still embarrassing himself occasionally but he is still making statement dont comport with reality obviously. But look when you came in place and you spoke about the runup to the presidency is domestic policy will be hard to move the needle much but the Foreign Policy can be volatile. Theres no crises so far but the substantive issues hes handled whether you like it or not you can say its been competent and also you have staff gone. Theyre moves tt make people who understand Foreign Policy in the u. S. More comfortable. Charlie and clearly he listens to tillerson. And bannon. And we now have trade moves against canada and we clearly have a more hawkish charlie justified trade moves against canada . I think so. In the sense that anyone you talk to democrat or republican focussed on trade says theres big issues in terms of Dairy Farmers that need to be addressed that werent being addressed. Softlumber is not if you and if you were going to pick a fight in the runup to 100 days you dont want to pick on china because youre waiting on how north korea can play out and it can go badly. You pick on canada on an issue you know you have leverage on and can say ive done something for your base and at the same time its not a disaster. So with all that im ok. Charlie nafta remains to be seen. You have two Anonymous Sources in the administration saying he is thinking about putting executive orders in that would withdraw you from nafta. Thats not happening. That is stage craft in the run up to 100 days. It shows pressure on canada. Theres in way theyre doing it. I agree the chances of them doing it are unlikely and all the language suggested they want to renegotiate nafta rather than redo it but it moved markets the peso was down and share prices were off and its a sort of slightly rationing to do it youre not intending to leak to the press that this was drawn up under the auspices of steve bannon. Youre right. I think the personnel moves are on the National Security side are probably one of the other big victories that we have a more normalized National Security team in fact a respected National Security team. General flynn was someone from the beginning whos appointment was curious to say the least. It shows there are odd things the administration can do. Charlie in a question about china, do we know what was achieved in that conversation in palm beach other than two World Leaders of the two perhaps most important and important nations in the world getting to know each other which is crucial to do. The chinese made offers investments in the United States the white house turned down and said the problem between us is too big. Were not going to take a few billion dollars as a way of solving this and making us look indebted to you. The other is the pressure on north korea. The white house went in and clearly said you have to put more pressure on north korea and if you dont well take retaliatory actions against chinese entities. Whether they can do that is questionable but they seemed to have gotten something from the chinese in actions against north korea which is the biggest Foreign Policy challenge the president faces. They took the policy off the table which allowed the meeting to be set up to begin with and trump took currency manipulation off the table and theyre looking for Market Access charlie he is no longer talking about currency manipulation. And looking into Market Access into china thats equivalent to what the chinese have in the United States. Clearly the chinese are not prepare to move. That was not near xi jingpings speaking point but they are saying we expect you to take them seriously theyre increasing their Nuclear Capabilities and their cyber attack capabilities. The chinese never thought trump would escalate and they realize trump might. Charlie do we understand that china appreciate and shares the United States idea something has to be done about north korea having deliverable Nuclear War Heads . It sheds the idea something has to be done but the outcome may be different from beijings point of view than washington. It suits the chinese and they dont want the collapse of the north korea regime. Charlie they dont want a unified korea. And dont want a load of forces on their border. Theres lots of reasons china and america seem to be cooperating on north korea at the moment but it would be a mistake for the administration to think they had identical purposes when it comes to the peninsula. First youll have a south korean election and the outcome of that in a couple short weeks youll have either a leftwing president or a centerright president. Charlie hostile to north korea . Both of whole will be more attached to beijing and both will have challenges for the u. S. Missile Defense System and the rest. The second is wilbur ross is clearly more hawkish, more economic nationalist on china than the markets would like. He now has 100 days to work to get more Market Access and come up with a better deal. I suspect at the end of the 100 days you will not have corporation though the koreans will try to bring it about and wont have a significant deal between u. S. And china that both think are acceptable on trade. If i were advising trump id say give them another 100 days because theyll have a leadership transition. But if they want to show you have an executive order on steel, maybe one on aluminum and theres a study and it shows theyre getting unfair support, towards the end of this year is when i would expect its going to be much harder on day 200 to say u. S. China is on a reasonable path than now on day 100. The bottom line of north korea is for them the nuclear and conventional arsenal is an existential issue. He sees his countrys survival dependent on that. Charlie you have sanctions on russia and trump came in refusing to say anything bad about russia and putin. We dont know had he said anything bad about putin. Hes talked about russia but as far as my memory serves me hes not said anything about putin specifically. Even since the syria attack. Charlie he still has hopes they can Work Together . Tillerson went to moscow. Putin didnt say hed meet with him and at the last minute he did. Clearly the message has been sent theyd lake to continue to see if theres an ability to engage. I think the nature of the politics in the United States at this point with the Ongoing Investigation into a number of the people around trump and their conflicts of interests make it virtually impossible to get a deal done between the u. S. And russia. Charlie where do the investigations stand now . The last 24 hours has been jaso Jason Chaffitz said we need an accurate account when it came National Security clearance. They gave him the forms and he filled in the forms and they took them at face value. How the white houses security processes work will come under scrutiny. And theres no proof anybody chose to tr