Transcripts For CNBC Closing Bell 20170927

Stunt growth we are in washington with the latest who has a break down of the republican tax plan. Hi reporter hi scott, republicans are committed to getting tax reform done this year, Republican Leadership has been trying really hard to show that everyone is united around this framework, and members of the tax reigning committees in both the house and the senate just held a joint press conference to make their pitch to the American People this is a now or never moment taking money out of washington and putting it in the pockets of our citizens. House republicans join with President Trump in our Senate Colleagues in letting the American People know were taking action now. And i hope we can bring democrats and republicans together in the best interest of this country were going to do it several lawmakers did make that call to try to get democrats on board with this effort, but theres been a lot of pushback from the left with democrats like senator Chuck Schumer saying this plan is basically a handout for the wealthy and for big businesses and thats because this plan would lower the corporate rate to just 20 . It would also give pass throughs a rate of 25 . It consolidates the individual tax rates into just three 12, 25, and 35 with the option for a fourth higher rate if lawmakers so choose. Now republicans are adamant that this plan does represent a middle class tax cut senator tim scott said that he thinks that this whole idea needs a new hashtag on twitter his suggestion was, hashtag, keep yo money. Back to you. I did not see that one coming elon, thank you very much. Lets bring in our other reporter at the white house. Over in indianapolis, amon reporter thats right, you talk about that bipartisan idea that president travelled with joe donnelly, to indiana today and were told by the pool that senator donnelly just got in the beast, the president ial limo to ride over to the venue with the president of the United States so that is some armtwisting there, president ial style going on in order to see if they can bring over some democrats along with all the republicans who are expected to vote for this. Just before leading here at the white house, the president stopped before hopping on marine one to talk to some reporters about all of this. And made a number of headlines, but he also my plan is for the working people and my plan is for jobs you wouldnt benefit under your tax plan . I dont benefit you dont think the rich benefit . Very, very strongly as you see, theres no i think theres very little benefit from people of wealth reporter so the president there says he himself would not benefit under his own tax plan and theres little benefit there for people of wealth and i think youre going to hear him underscore that today in indiana in these remarks were expecting later on in the hour the president , im told, is going to speak to a specific family from indiana, a family of four and talk about how much they would save in terms of taxes under his plan, about 1,000 a year the president will say. So thats sort of an effort to frame this around the middle class and make the case very much that this is a middle class tax cut despite whats senator Chuck Schumer and other democrats are saying near washington, kelly. Well see what the president says shortly, thank you. Now the Closing Bell Exchange today we have lamar vilery hes not wearing a skinny tie. Steve grassroot who is wearing one, rick, i cant tell, that looks sort of normal to me Rick Santelli at the cme in chicago. Im skinny, what do you think of the tie now good answer, good answer. Steve, dows up 76 points right now, the russell up 2 last check, whats going here . You have catchup trades going on dollar mechanism going on here as well. If you think the dollars rising, its rebounding from those lows so, the iwms are up 6 in the last month its been a huge catchup trade. I do think that a lot of this is month end. I dont know if you should make any Business Decisions based on what weve seen in the last couple of days this has so much going into the soup its the stew so to speak right now with tax policy, potential tax policy changes so i think you give if a couple of days, a wait to see if that tech selloff comes back again before you start putting your money back in all the other value quote unquote initiatives and investments. Were waiting on President Trump in indianapolis to really begin selling this plan. How much does the market need tax reform to continue to go higher probably does need some tax reform i think a lot of it is baked in, the prujs its going to get done you think its in i think to some extent its in when you look back to when trump was first elected and the market tanked and rose from there i think thats when people stopped took a step back and said maybe theres some positives here and rather than the initial surprise so i think some of thats built in i think theres an expectation you have a couple of specific names that you think could do well here. What are those examples . So, so one is coming on pool, basically they supply everything for swimming pools except for the water. And its a great business its recurring. People are stuck paying for chemicals and pumps. Also new build as consumers feel more confident as they take home a little more, theyre able to invest in their property rick, you know, rates are an interesting story today. Obviously along with the dollar, the two year is at the highest level since 08, the ten year yield hits 230 where do we see that heading in the days ahead, do you think . Well, with the fed kind of guns hot on a tightening this year, maybe one to three next year, the two year makes perfect sense. If you match up fed funds, theyre going to correlate pretty closely to that two year, the further down you get on the curve of course, the less effect you get. 230 isnt really a high yield when you consider we settle at 244, 119 so that all made sense for the end of 2016. I like the way the markets are training we have that trifecta again, higher rates, higher dollar, and higher equities. I do think that the politics and the talk of taxes is taking all of the air out of the room with respect to the market. Listen, to me, if there wasnt in any tax talk going on at all, i still wouldnt be shocked to look at the way the boards are aligned, but i still say that we have a lotto administration, we have a chance to win on Economic Policy, changes for the better will they get passed or not . I dont know previous administrations, you didnt even get the ticket so i cant tell you how its going to turn out. I will tell you this, i think bannon left an affect on trump and that affect is is that his base will benefit from these tax cuts i think the humors ought to rethink the comments theyve made my guess is this will get done and the people that will be the least happy actually might be some of the republicans. I was just going to ask both of you what the impact of the senate race last night that saw roy moore win actually and pull off kind of this conservative victory. Jimmy. s take said, he thinks its bad news if you like trade and immigration, things that are typically seen as marketfriendly. Whats your point of view on this had i dont think it moves it one way or the other to be honest with you, kelly. I think investors are looking for Growth Investors are looking, i think were starting to see too what today shows me is maybe the move is there a danger they dont get that now you could perhaps fairly ask, if Moore Campaign in many ways against mitch mcconnell, is he part of the gop coalition assuming he wins his next victory for everything that people want out of the Trump Administration and gop agenda, is it actually going to deliver i dont, i dont think, i dont think it will impact the tax. I think the tax cut is either going to happen or not i dont think moores election i think the Republican Party is so split and fractured right now that its just another thing on top of Everything Else. And but does that undercut the success of the president theres not a lot to show so far for 2017 theres smaller things, federal regulation, executive action and so forth, for those Big Initiative i think that the people and to scotts earlier point, i dont think that the tax cuts are in just yet. And i dont think that anyone is really hitching their wagon to the Trump Administrations agenda, other than what you just said lack of regulation, lack of new regulation, lower epa standards, getting pulling things back from where they got a little outsourced in the last eight years. So i think thats what the market is holding on to but if i told you though, sorry to interrupt you sure. If i told you though that were not going to get tax reform done in 2017, and its unlikely well get it done in 2018, thats not just me, thats cowen said 17 not going to happen, 18 not going to happen. What would the market do goldman has a basket of high tax stocks that are all underperforming today. So i dont even think that its in the market right now. I think youre seeing a lot of window dressing for the month end, but i do believe that never underestimate the lack of new regulations on corporations. Dont underestimate the midterms dont underestimate the midterms you think that brexit trump dynamic is gone. If nothing gets passed, it isnt going to be so much election about democrats or republicans, its going to be about election about why nothing gets down and trump benefits from that i dont see this dark side i think people are pretty savvy. You have both sides that really dont have any specifics and the left side says its horrible, the right side is kind of disjointed, you know what that means, if you look at the current wave of voting in this country since 2010, theyre going to Stock Congress with people that are more want a to succeed in getting things done rick, theres a lot of people that are really angry too that hes dealing with Chuck Schumer too. The same people that were angry before the election where trump won, i agree with you. Gentlemen, thank you. Good to have this discussion lamar, steve, and rick all right. Cnbcs annual iconic tour is taking place right now in los angeles with some of the countrys top entrepreneurs set to take the stage. Joining us now is one of this years featured guests professional skate border, tony hawk tony, welcome. Pleasure to have you on closing bell. Thank you, good to be here. I mean, skate border doesnt even tell the whole story, right, bicycles, clothes, shoes, bestselling autobiography, business is pretty good for the tony hawk empire these days. Its been a crazy ride, yeah, its nothing i ever expected as an outcast at age ten. You know, you could never aspire to be that successful because anyone that was out of high school couldnt find a job in skate boarding whats the message of success that youre trying to give to people at iconic today i truly believe the success is based on doing what you love for a living and so financial gain or adulation or celebrity, all of that stuff is incidental to truly enjoying your work and im living example of that you know, im to this day, what i really do for a living is still ride my skate board. Even at my age and thats what i really love about it i mean, you know, the fame and the fortune is awesome, but its more incidental. And i just appreciate that i get to wake up and do exactly what i wish i could be doing. Tony, do you have any thoughts on whats happening, College Basketball right now i mean, you know, i dont know, i guess that you sort of grew up as a rebel on the outside of all of that, but you look at whats happening with the young kids now and the way theyre getting funneled into these systems and whether theres any good even if they get to the pros sort of whats been involved, do you have any reaction . I havent really been following that story, but i do feel like there is a machine that is the team sport, especially in college. And its more like youve got to fit into that pattern in order to be successful and it may not be that the kids are really enjoying it along the way. And i feel like you cant let them lose that passion for it. And, you know, they deserve all the accolades as well. Some its super tricky like i said, i dont know the nuances of howcollege sports work yeah, the one other thing that i thought would be interesting to hear from you is the response to some of this is look, lets stop the shir raid if you see a promising young athlete in any kind of sport and you want to give them corporate sponsorships and opportunity, do we need to preserve this sort of amateur designation . Not at all. And if you look to skate boarding, who that whole world has been blown apart even the amateurs do get paid in skate boarding the only thing thats really signifies is if you have a skate board with your name on it other than that its a gray area and there isnt really regulation that is saying otherwise. But i love that. I love that skate boarding has been a irreverent. We dont have to succumb to those big forces like that and yeah, exactly. Why play a shir raid, just say look, these are promising athletes, they deserve to get paid, especially if theres a huge amount of people making tons of money off of them. Tony, what do you make of the rise of e sports is that potential competition in the socalled x games kind of activities how do you see that . And as so many billionaires now from the world of professional sports are putting real dollars to work in that arena. I think its cool i dont liken it to what i do as a sport necessarily. But it is very challenging and i have much respect for the people who have devoted so much time and have gotten really good at it. I mean obviously there is plenty of opportunity and yeah, ive actually had a couple of people ask me and approach me about getting involved in e sports i dont, i cant pretend to understand it enough to be passionate about supporting a team it is interesting nonetheless, the rise of just how young people are spending their time in sportsrelated activities in their house. I wish i got paid to play missile command what i was a kid. Youre getting paid for almost Everything Else maybe thats in the future. Thats true, im not complaining now. Yeah. I dont know, tony, should we ask you how you benefit from trumps tax from the tax plan, the gop tax plan i dont know, should we go weve got to go. I cant answer that right now. Thank you very much for joining us congrats on all of your success. Good to have you with us this afternoon. Okay. Thank you. Thanks good to see tony hawk 45 minutes before the closing bell public dow jones is up 68 points s p 500 is in the green as well. Still ahead as we await the president. We have a report on which Company Stands to benefit the most from a businessfriendly tax plan in which stocks have already seen that bump plus the dow is up more than 230 since 2009 when the bull market began what could derail the longest upswing on record . With the chief Economic Advisor next tmobile never stops. Weve doubled our lte coverage. Were already the fastest 4g lte network, and we just keep getting faster. And now americas best unlimited gets even more powerful when you pair it with the new iphone everyone is excited about. Introducing the amazing iphone 8. Its the best iphone yet, now on americas best unlimited network. For a limited time, save up to three hundred dollars on iphone 8. And now, join tmobiles Iphone Upgrade Program for free. Of emerging markets obsolete . At pgim, we see alpa in the trends, driving specific sectors of out performance. Where a rising middle class powers a booming auto industry. A leap into the digital era draws youthful populations to mobile banking and ecommerce. Trade and travel surge between emerging markets. Everyday our 1,100 investment professionals around the world search out opportunities for alpha. Partner with pgim, the Global Investment management businesses of prudential. Bit of a move higher as you just saw there we are waiting to hear from the president any moment now hes making a big speech on tax reform after the gop unveiled its tax plan. Itll be taking place in indianapolis shortly stocks have had quite the run since donald trump was elected president as you know the dow up more than 20 and the climb since the market bottomed in 09 has been even more remarkable. Up more than 200 . And what risks could derail the market thanks nor joining us. Thank you is it right, thats one of the reasons theyre moving up today. What do you think are the biggest factors for the rally . So we have a whole list of uncertainties, kelly, but the key thing is you need them to materialize in a big way because theres so much liquidity and so much conditioning. You have what happens at central bank you have questions about politics you have questions nationalism on Different Countries and perfection again, i stress, you need a big shop in order to derail this market so its the climb the wall of worry, right as stocks have been going up none of those things on that list, mohamed, beyond the unknown obviously sound like they could happen tomorrow or so to speak the biggest vulnerability is that we have the asset prices and weve done that because of massive injections of liquidity and investor conditioning which has worked extremely well. Theres nothing that works better than something that pays you time and time again. Which is buy on the day. So you do need quite a bit of shock, but the vulnerability is that gap between the fundamentals that remain sluggish and asset prices. Do you have any idea how long its been rallies. What do you make of it so i make a few things, one is dont underestimate the power of Central Banks when they keep Interest Rates ultra low and when they gave the investor the impression that they are covering investors back to various qes and other things never underestimate the power of Central Banks. The second is weve had a pick up in global growth. There is somewhat of a recovery going on its good to have the two thijs together, and i think that explains what has been a fairly impressive move up not so much global growth. As you just stated, mohamed is improving if you look not only in the United States, but certainly europe and elsewhere, earnings are expected to be good. Fundamentals are driving this move in asset prices at least to some respect are they not yes, scott the big question mark is how much of an improvement fundamental do you need to validate what stocks have done . So yes, fundamentals are improving. Why this tax plan is so important, the key issue is to have economic policies out of washington, out of european capitals that actually generate high and inclusive growth. Thats what we need. And that is what ultimately will make sure that we get a smooth transition if we dont get those policies, then its a more questionable outcome. Youre arguing what ben bernanke would say you guys and ladies need to pull your weight from the fiscal side because the monetary side can only take us so far and were not going to be able to rely on that thats essentially what youre saying yeah im saying it not just a fiscal side, but pro growth measures, infrastructure, cleaning up the tax system so not just tax cuts, but tax reform so theres lots that can be done, and its no puzzle, people have identified whats needed. If you dont get it, you get a global adding up problem and thats where the currency comes in, no one wants a strong currency these days. Its important we get that policy hand off. Thanks for joining us joining us from london tonight 35 minutes to go, just a couple minutes until we hear from the president dows up 77 today, s p is up 14. Russ sl on a terror, up more than 2 and the nasdaq as well up 1. 4 . And we are waiting to hear about the tax speech number of stocks have seen a pretax plan bump and they have one thing in common. Well tell you that what that is, next and later, why the results of yesterdays Alabama Senate primary runoff could impact the republican agenda going forward. Excuse me, are you aware of whats happening right now . Were facing 20 billion security events every day. Ddos campaigns, ransomware, malware attacks. Actually, we just handled all the priority threats. You did that . We did that. Really. We analyzed millions of articles and reports. We can identify threats 50 faster. You can do that . We can do that. Then do that. Can we do that . We can do that. You know win control . Be can we do that . This guy. Check it out selfappendectomy oh, thats really attached. Thats why i rent from national. Where i get the control to choose any car in the aisle i want, not some car they choose for me. Which makes me one smooth operator. Ah still a little tender. vo go national. Go like a pro. Throughout my career, ive been fortunate enough to travel to many interesting places. Ive always wanted to create those experiences for others. With my advisors help along the way, its finally my turn to be the host. When you have the right financial advisor, life can be brilliant. Ameriprise thithis is the new new york. E . Think again. We are building new airports all across the state. New roads and bridges. New mass transit. New business friendly environment. New lower taxes. And new University Partnerships to grow the businesses of tomorrow today. Learn more at esd. Ny. Gov all right. Welcome back the president of the United States about to become the salesman in chief from that podium right there in indianapolis, beginning the process, President Trump will start selling his tax plan to the American People. Nine pages put out today by the republicans, little light on details, maybe well find out some more in the coming moments, including how the republicans plan to pay for these. Thats the key. Will it be revenueneutral. Will they use dynamic scoring. Will they include state and local property taxes the 401 ks and the list goes on. How about the list of stocks in the week leading up to todays tax plan announcement. Dom is back at headquarters with a look at these moves. Taxes is the that a lot of stocks have in common. There are many on wall street who are looking at some of the most highly taxed companies and how they perform relative to the lowest or lower Tax Companies out there. Of high tax stocks versus low tax stocks over the last week or two with the prospects perhaps of maybe headway on tax reform. Some of these higher tax stocks have been outperforming the lowest tax cousins among the stocks theyre looking at, some of the analysts out there, some of the customers many of these stocks have rallied over the course of the last couple of weeks for a number of reasons, obviously the many different to put a price on it today. A lot has to do perhaps with the idea that relatively large tax bills including in their industries and now could see the prospects of tax reform. Perhaps flow down to the bottom line one of the places and maybe see some realtime handicapping of whats going to happen with the prospects of tax reform, check out whats happening with those small cap stocks we are seeing record highs again today, but many analysts out there will argue that some of the small cap stocks could have a lot more to benefit if there is potential tax reform and those optimistic views are being expressed in those small cap stocks as we talk about tax reform, you want to keep an eye on some of those small caps that realtime barometers, at least for right now with the prospects of tax reform thanks so much. It is time now for a news update with sue herrara hello scott, hi kelly, heres whats happening kurds celebrating in the street after its referendum on independence from iraq was approved by more than 92 of the voters even with that strong support though, the nonbinding vote is unlikely to lead to formal independence because iraqs Prime Minister is vowing to keep his country united without resorting to the use of force. Louisville basketball coach rick pitino has been suspended without pay. This after the mens Basketball Program is part of a federal investigation into alleged bribery of recruits. The schools Athletic Director was suspended with pay a nevada prison official says a plan is in place for o. J. Simpson to be released on patrol as early as monday from a facility near las vegas. Simpson has spent and heres the president announcing his tax plan in indianapolis lets listen in. [ applause ] thank you have. Thank you very much, you just want massive tax cuts, thats what you want. Thats the only reason youre going so wild. But its wonderful to be back in the great state of indiana, what a place. [ applause ] i want to thank senator todd young, senator joe donnelly, representative jackie, representative susan brooks, and representative mike master for joining us today thank you very much. Thank you very much. Appreciate it. [ applause ] i also to want thank members of my economic team, secretary Steven Mnuchin and director gary koen for joining us as well. We appreciate it let me begin by saying that our hearts and prayers go out to the people of puerto rico and the Virgin Islands who are suffering in the wake of yet another catastrophic hurricane and their island was virtually destroyed federal agencies are working closely with local partners to help these communities get back on their feet as soon as possible texas, florida, louisiana are doing great. And the Recovery Process is happening very, very quickly i will be going down to puerto rico next week to get an on the ground briefing about the Disaster Recovery and to see all of our great First Responders and to meet a lot of the people who were so affected by these storms we are with you now i tell them. And we will be there every step of the way until this job is done it is truly catastrophic what happened in puerto rico. And massive amounts of water, food, and supplies by the way are being delivered on an hourly basis. Its something that nobodys ever seen before from this country. I can tell you that. And im very proud of all of the folks that have worked so hard in fema. All of our First Responders, all of our police that have gone to the island because their police force has been to badly affected most of the Police People have lost their homes, and its been a tough go, but we are, we are going to get it back before we go on to discuss the largest tax cut in our countrys history, i also want to provide a brief update on health care. We have the votes on grahamcassidy but with the rules of reconciliation were up against a deadline of friday, two days, thats just two days, and yes vote senator we have a wonderful senator, great, great senator who is a yes vote, but hes home recovering from a pretty tough situation and with so many great features, including all of the block granting, the money to the states, et cetera, et cetera, our Health Care Plan is really going to be something excellent, its going to be better managed for the people that it serves. Having local Health Care Representatives is far better than having health care managed from washington, d. C [ applause ] not even a contest and many, many governors as you also see have agreed with us and approved it and really look forward to running it properly but again, because the reconciliation window is about to close, we have to wait a few months until it reopens before we take a vote so were getting all of the good signs from alaska and the others to repeal and replace obamacare and i was hoping this would be put on my desk right after we won the election and id come in and sign, but it didnt work that way couple of people that i wont say anything, but early next year when reconciliation kicks back in, in any event, long before the november election, were going to have a vote, and were going to be able to get that through and i think well actually get it through very easily and the time makes it easier but speaking of reconciliation, the Republican Senate needs to get rid of the filibuster rule, which is blocking so many great legislative reforms, the American People badly want and deserve. By the way, the democrats, if they had the opportunity, which hopefully they wont for many, many years, they would get rid of it on day one and most of you know exactly what im talking about were here today in indiana to announce our framework to deliver historic tax relief to the American People. [ applause ] make is simpler and more fair for every day americans and we are going to bring back the jobs and wealth that have left our country and most people thought left our country for good. [ applause ] we want tax reform that is progrowth, projobs, proworker, profamily, and yes, tax reform that is proamerican. [ applause ] its time to take care of our people, to rebuild our nation and to fight for our Great American workers [ applause ] indiana is a tremendous example of the prosperity that is unleashed when we cut taxes and set free the dreams of our citizens this state has claimed a powerful Competitive Edge built on low taxes and less regulation and are we cutting regulation. [ applause ] and businesses all across the country have taken notice. In recent years, indiana has welcomed dozens of Companies Fleeing high taxes on high tax states thousands of new jobs in massive Capital Investment have followed meaning a better quality of life for the people of indiana. All of this is possible because the people of this state have made a decision. They chose to make indiana competitive again. They chose, and their choice was so important, it included electing a governor who you may have heard of who signed the largest income tax cut in the states history. Our very, very terrific person and terrific Vice President mike pence. Its time for washington to learn from the wisdom of indiana. We need washington to promote american jobs instead of obstructing them that is what ive been working to achieve every day since i took office. That is what i talked about on the campaign trail already were seeing the results of an Economic Policy that finally puts America First [ applause ] since the turn of the millennium, its a fantastic thing to see [ applause ] wages are rising, optimism, among manufacturers has reached alltime highs gdp growth last quarter reached way ahead of schedule, nobody thought that was going to happen far long time. [ applause ] and this quarter i believe would have been better, but the hurricanes will have an impact but other than that, it would have been my opinion even better your government is working for you once again, not for the donors, not the special interests, but the hardworking taxpaying citizens of our country. [ applause ] america is back on the right track and i see so many red hats, make America Great again, thats what were doing. Make America Great again [ applause ] but our country and our economy cannot take off like they should, unless we dramatically reform americas outdated, complex, and extremely burdensome tax code. Its a relic got to change it we have to compete compete with other countries the current tax system is a colossal barrier standing in the way of americas economic comeback because it can be far greater than its ever been. But were going to remove that barrier to create the tax system that our people finally, finally, finally, and want, and deserve, for several months, my administration has been working closely with congress to develop a framework for tax reform over the next few months, the house and senate will build on this framework and produce legislation that will deliver more jobs, higher pay, and lower taxes, for middle class families for the working man and woman, and for businesses of all sizes. I look forward thank you. [ applause ] i look forward to working with congress to deliver these historic tax cuts, and reforms to the American People these tax cuts are significant theres never been tax cuts like what were talking about our framework is based on four key ideas. First, we will cut taxes for the every day, hard working americans, people that work so long, so hard, and theyve been forgotten, but theyre not forgotten anymore. I think we proved that on november 8th [ applause ] under this framework, the first 12,000 of income earned by a single individual will be taxfree [ applause ] and a married couple wont pay a dime in taxes on their first 24,000 of income. So a married couple, up to 24,000 can spend their money on their family, on their children, on what they have to do. So much better in other words, more income, for more people, will be taxed at a rate of zero [ applause ] at this 0 rate, taxable income will be subject to just three tax rates of 12 , 25 , and 35 , jonathan and his wife jamie, from greentown are here with us today. Where are they oh hello, jonathan. How are you . [ applause ] jonathan does industrial, january tomorrow work and jamie works at an auto company together theyre raising four beautiful children and last year they earned less than 90,000 under our tax plan, they would have saved more than 1,000, and could be substantially more, and thats just on federal taxes so they would have saved at least 1,000, middle income families will save even more money with an increase Child Tax Credit for children under the age of 17, which so many families have been going through. [ applause ] we will eliminate the marriage penalty in the existing credit and expand eligibility to include even more middle income families greatly expanded were also expanding the Child Tax Credit because we believe the most important investment our country can make is in our children [ applause ] and this is just one more critical way that were targeting relief to working families in addition, under our framework, those caring for the elderly loved, and we love these people, but were caring and we take such care of the elderly and other adult dependents will receive Financial Relief in the form of a 500 tax credit. [ applause ] were doing everything we can to reduce the tax burden on you and your family. By eliminating tax breaks and loopholes, we will ensure that the benefits are focussed on the middle class the working men and women, not the highest income earners [ applause ] our framework includes our explicit commitment that tax reform will protect low income and middle income households, not the wealthy, and wellconnected they can call me all they want its not going to help im doing the right thing. And its not good for me, believe me what is good for me, not only as president and legacy, what is good for me is if everything takes off like a rocket ship like it should have for 20 years. Thats good for me thats good for everyone [ applause ] we have Given Congress the flexibility to add an additional top rate on the very highest income earners to provide even more tax relief for working people second, our framework will make the tax code simple, fair, and easy to understand, finally. Americans waste money [ applause ] americans waste so much money. Billions and billions of dollars and many hours each year to comply with our ridiculously complex tax code more than 90 of americans use assistants to prepare their taxes. Under our framework, the vast majority of families will be able to file their taxes on a single sheet of paper. [ applause ] about time the amt is actually a shadow tax system that requires many people to calculate their taxes two different ways, and pay the higher of the two amounts. Youre all familiar with it. Under our framework, the amt will make even less sense because we are repealing many of the special interest tax breaks that was designed to deal with we are making our taxes simple again. We are simplifying our tax system to protect millions of Small Businesses, and the american farmer, we are finally ending the crushing, the horrible, the unfair estate tax or as it is often referred to, the death tax. [ applause ] that means especially for all of you with Small Businesses that are really tremendous businesses, youll be able to leave them to your family, and your family wont have to run out and do a fire sale to try and get the money to pay the tax, lose the business, ends up going out of business, all of those jobs are lost, the farmers in particular are affected they have wonderful farms, but they cant pay the tax so they have to sell the farm, the people that buy it dont run it with love they cant run it the same way, and it it goes out so that death tax is a disaster for this country and a disaster for so many Small Businesses and farmers and were getting rid of it [ applause ] now if you dont like your family, it wont matter. Okay but for those that love your family, it matters a lot with us today is kip tom a family farmer from leesburg, wheres kip . Good, kip, hi, kip [ applause ] who fears that his familys farming inheritance, has been a long time, how long, kit 187 years, its peanuts, kip [ applause ] wow, thats a long time. But that great heritage could come to an end because of the death tax or the estate tax, and could make it impossible for him to pass that legacy to his wonderful family were not going to let that happen we are not going to allow the death tax to steal away the American Dream from these great, great families, many of which are in this room today we will protect our farmers, our ranchers, and our Small Businesses and we will make taxes simple, easy, and fair for all americans. Okay [ applause ] third, we will cut taxes on american businesses to restore our Competitive Edge and create more jobs and higher wages for American Workers [ applause ] in indiana you have seen firsthand that cutting taxes on businesses makes your state more competitive and leads to more jobs and higher paychecks for your workers now, we want to do the same thing for america, making our country more competitive with other nations. And in many cases, those other nations are taking advantage of us in so many ways they say theyre friends and perhaps they are, but believe me, i am renegotiating our trade deals, including nafta, including many other trade deals. And through regulation, all you have to do is look at the massive pipelines, dakota access, you take a look, 48,000 jobs, immediately approved so were letting that happen but in terms of the tax and the tax strategy that Ronald Reagan used to create an economic boom in the 1980s when our economy took off, the middle class thrived. And the family income, of all families, was increasing more and more and was a beautiful sight to behold. Since then, other nations have adopted, unfortunately, our playbook and ran it even better than we did. And i shouldnt say even better because we didnt run it well at all, and we let other nations come in and take advantage of us and take our jobs away and take our businesses out, and were stopping that. And you see it right here. What weve done. Today, our total business tax rate is 60 higher than our average foreign competitor in the developed world. Thats not good. We have surrendered our Competitive Edge to other countries, but were not surrendering anymore were not surrendering anymore under our framework, we will dramatically cut the business tax rate so that American Companies and American Workers can be our foreign competitor and start winning again. [ applause ] its way down from 35 and 39 [ applause ] which is substantially below the average of other industrialized nations. This is a revolutionary change and the biggest winners will be the every day American Workers as jobs start pouring into our country, as Companies Start competing for american labor, and as wages start going up at levels that you havent seen in many years [ applause ] when our Companies Move to other countries, its our loyal American Workers who get hurt. And when Companies Stay in america and come to america, its our wonderful workers who reap the rewards and i just left the United Nations last week, and i was told by one of the most powerful leaders of the world that they are going to be announcing in the not too distant future five major factories in the United States between increasing and new five youll be hearing about that very soon. [ applause ] and i said thank you very much, and he said, you know what, its starting to happen in the United States its starting to happen. So i just wanted to let you know that i promised i wouldnt say who. Ill keep my word, okay. Unless you force me. Members of both parties, it happens to be in the automobile industry, thats a good industry members of both parties should agree that we need a tax code that keeps jobs in our country and brings jobs back to our country. [ applause ] and for the millions of Small Businesses and farms that file their taxes, S Corporations or partnerships, we will cap the tax rate they pay at 25 [ applause ] this will be the lowest top marginal income tax rate for small and midsized businesses in this country in more than 80 years. To give businesses even more reason to boost their investment in america for the next five years, our framework will allow to fully write off, listen to this, the cost of equipment in the year they buy it that is big. And thats instead of having to take deductions and deduct the cost over a long period of time. Now thats called incentive. Thats called incentive. This will be tremendously important to help american businesses afford the heavy industrial machinery and other Capital Investments they need to grow big and grow strong joining us today is john michiganen, the owner of a debt Construction Company in indianapolis john is the father of nine children and recently celebrated his 35th wedding anniversary, congratulations, john. [ applause ] and john is in the Fencing Company as you heard, and im just thinking, i have to mention this, you know we have a fence around the white house we have a fence around the white house. And they want to build a new fence. And i figured, you know, im pretty good at construction, i figured i dont know, maybe a million, maybe a million and a half, and this has been taking place over a long period of time, previous administrations so i said how much is the fence youre talking around the white house . Sir, the fence will cost approximately 50 million. I said, what i kid you not. And we have thousands of things like that. Thousands. Were going to get it all down, but think of that, 50 million i assume its a strong fence okay so john, do you think you could do it for slightly less than 50 million . I think you could take 49 off, right . You would have and plenty of profit its crazy its crazy hire more workers and raise wages for his current employees, right, john . Also with us is aaron williams, a father of two who works in the field of information technology. Where is aaron hello, aaron, hi [ applause ] its a good field. Aaron has seen the disaster effects of high and just literally high Corporate Tax rates, right up close and personal as more and more hightech jobs are shipped overseas youve been watching it, aaron, right, all over . Like millions of other americans, aaron wants to bring those jobs back to the United States were going to reduce the tax rate on american businesses so they can keep the jobs in america, aaron, create jobs in america, compete for workers in america, and raise wages right here in america. You going to be in a much different position okay [ applause ] thank you. Tremendous incentives. We want more products proudly stamped with those four beautiful words made in the usa. Right . Made in the usa finally, our framework encourages American Companies to bring back the trillions and trillions of dollars in wealth thats parked overseas our current tax system trillions. And by the way, for years ive been hearing its two and a half trillion ive been hearing this for about five years, i assume its much more, right . But democrats want to do it and republicans want to do it. For years, who doesnt want to do because they cant do it because its restrictive and the taxes are so ridiculous, so they cant do it. So the money stays in other countries and its invested in other than countries we to want bring it back, think of it, its one of the few things democrats wanted and republicans wanted so they both want it, and yet for years they havent been able to do it now, were doing it. Were doing things [ applause ] you know, its one thing when we want to health care and they want a health care and theres a zis put, but heres something everybody wants, we can tell you theres a broken system in d. C. , but were getting it fixed rather, i think rather rapidly youll be seeing that over the next few months. Our current tax system makes us one of the few developed nations in the world to punish our companies when they bring wealth earned overseas back into our country. Were punishing them for bringing the money back in as a result, corporations have parked many trillions of dollars in foreign countries, and many have incorporated in order to avoid our punitive tax system altogether and some companies actually leave our country because they have so much money overseas, so much, its an incredible amount they move their company to get their money. Were going to let them bring the money back home. [ applause ] our were punishing these under our codes for being in the United States. We will impose a onetime, lowtax on returning money that is already offshore so that it can be brought back home to america where it belongs and where it can be put to work and work and work. [ applause ] the framework ive just described represents a once in a Generation Opportunity to reduce taxes, rebuild our economy, and restore americas Competitive Edge finally. It really received tremendous, tremendous reviews and if senator donnelly doesnt approve it, because, you know, hes on the other side, we will come here, we will campaign against him like you wouldnt believe. [ applause ] i think theyre going to approve it i think well actually have numerous democrats come across because its the right thing to do these reforms will be a dramatic change from the failed tax system that encourages american businesses to ship jobs to foreign countries. That have much lower tax rates thats what we cant do. Our competitors have much lower tax rates, but no longer my administration strongly rejects this offshoring model and we have embraced the new model. Its called the american model [ applause ] under the american model, we are reducing burdens on our businesses as long as they do business in our country. Thats what we want. We want them to do business in our country. Not to leave our country like a number of firms from indiana some made some great promises to me, but those promises are only being partially kept because theyre incentivized to leave, but now theyre going to be incentivized to stay. If that doesnt work well get to raise wages for American Workers and to help rebuild American Cities and towns. We want it to happen here. [ applause ] tax reform has not historically been a partisan issue. And it does not have to be a partisan issue today i really believe were going to have numerous democrats come over and sign because its the right thing to do. I believe that, its the right thing to do and i know many of them and theyre telling me it is the right thing to do president reagans tax cuts were passed with significant bipartisan majorities, at a time when there was a democrat majority in the house and a democrat speaker before that, democrat president john f. Kennedy championed tax cuts that surged the economy and massively reduced unemployment as president kennedy very wisely said, the single most important fiscal weapon available to strengthen the National Economy is the federal tax policy. The right kind of tax code at the right time, at the right time, this is the right time is the most effective measure that this government could take to spare our economy forward should come together, finally, to deliver this giant win for the American People, and begin middle class miracle, its called a middle class miracerire once again with enough encouragement from the American People, they will do what is right for our great country. But theyll only do it if you, the American People, make your voices heard only if you Tell Congress to give us a tax code that puts american jobs first. And thats what were doing. [ applause ] history has proven time and time again that there is no power on earth more awesome than the will of the American People that is why today i am asking all americans, republican, democrat, independent, to join with me and with each other to demand tax reform that will truly, truly, truly make America Great again. [ applause ] call your congressman, call your senators, let them know youre watching let them know youre waiting tell them that today is the day for decision that now is the time to heal this selfinflicted, economic wound. And that with their action, the future will belong to all of us. If you demand it, the politicians will listen. They will answer, and they will act, and some day, many years from now our children, and our grandchildren, will remember this moment in history as the time when ordinary americans took control of their destiny and chose a future of american patriotism, prosperity, and pride. [ applause ] we will bring back your jobs, your wealth, and for every citizen across this land, we will bring back our Great American dreams. Thank you, god bless you, and god bless the United States of america. Thank you. President trump speaking in indianapolis to promote the gops Tax Blueprint that was unveiled earlier today a lot of little gems and nuggets in here according to to the president , in terms of news worthiness and in terms of detail was that plan lets give some of the more news worthy remarks, needs to get rid of the filibuster rule its a reference of their inability to Pass Health Care and perhaps other things as he unveils. Those two initiatives will not move forward together. Trump also said he wants the tax code to be simpler and that he wants most middle class families as they will be able to file on a single sheet of paper once this is done he spoke of repealing the amt, the death tax, talked for companies of being able to fully expresence, fully deduct their expenses in a year that they have them. At the end he also said, he thinks this will be a middle class miracle. He said i think well have numerous democrats on board, maybe theres their hashtag. Middle class miracle i dont know if thats quite the same theres competing hashtags here, kelly. What i thought was interesting is that it seemed to be a melting of both the traditional republican orthodoxy around tax cuts and the president s own particular brand of populism it was striking in the speech to hear him talk about tax reform of something that is proamerican in saying that u. S. Businesses need tax reform in order to start winning again we are going to bring back the jobs and wealth that have left our country and most people thought left our country for good its time to take care of our people, to rebuild our nation, and to fight for our Great American workers [ applause ] now whether this ends up as tax cuts or tax reform, wasnt entirely clear, but it does seem the president wants to go big no matter which one it is and i was checking on shares of h r block to see if they were, you know, selling off at all on this idea you dont need a tax preparing, theyre not. Theyre up one and a quarter percent. There is skepticism about the gop to pass this forward numerous democrats on board, well see on that front and even if it does move forward for now, interesting to see how exactly they do plan on paying for it. Thats all the stuff that gets uncomfortable to talk about. Not a lot of details there kelly in the speech, you heard the president there sort of teasing senator joe donnelly the democrat from indianasaying if he doesnt get on board, were going to come here and campaign against him. The president reaching out to democrats. A little bit of a carrot and a stick there. My takeaway here though was this was a surprisingly down beat donald trump that we saw today at points he was almost whispering, voice sounded hoarse he did talk about that middle class miracle that you just were talking about. And he said, this is a once in a Generation Opportunity this was the big reveal. This is sort of the capstone speech for the president on tax reform something hes wanted to get done for a long time but he had to open with a preamble explaining the failure once again of his Health Care Reform efforts so the moment is maybe a little bit frustrating to the president. That may be why hes looking to the bipartisan approach, if he can get democrats across the aisle, the math gets easier and they wont end up in the same situation with tax reform that they ended up in with health care but thats still an open question will democrats vote for anything that benefits donald trump is something that officials here at the white house have told me they think is still an open question theyre not sure that any democrats can come along with anything that will give the president a political win, but they are determined to court those democratic voters. And you saw that arm twisting and the ride in the limo with joe donnelly today, all of that about doing that and bringing to his democrats across the aisle kelly. What did you call that limo the beast they call the president s limo the beast. Its a cadillac, but it is a sup super, souped up cadillac. It has everything you could possibly want in there all right i will take your word for it, thank you very much. Thank you both well get more reaction from the panel. Here now is senior markets commentator. Russell stole the show. One it has a heavy financial waiting yields were up, bank stocks were up, but of course, the talk of tax cuts for corporations thats in the air right now, caused this very kind of forced rush into the russell 2000 etf in particular you have triple the average volume today in the main etf, so everyone just decided, look, its been outperforming for a while already. Weve seen this rotation from large to small in september already. And so lets just try to catch this train and chase it a little bit with the cover story of tax reform which of course were going to be arguing about for months i wonder why the russell has the iwm. What is the w . Probably fashion and an answer for you yeah. I got that i dont know if you have great insight on that what do you think about the tax plan and by the way, is that why we saw the yields up and the financials up today. Maybe it does happen and its good for the economy yeah, i think the tax reform was certainly the story of the day. If you look at the russell in particular, the possibility for tax reform boost in the bottom line is so much greater. We need a bottoms up analysis looking at s p 500 taking the effective tax rate which is 25 for the s p 500. You take it to 20. Thats a 7 boost earnings for the s ps 600 small cap. Its at 35 boost to earnings. May not actually work out to be exactly that that tells you the magnitude youre saying for the small caps in the s p, 35 boost from taking corporate rate down to 20 . Yeah, because the effective tax rate for the large caps is 25 verse the state of rate of 35 where small caps pay much closer to that 35 so the leverage is higher. So for the russell today, is that a big piece of why you think it was popping 2 . That was mostly the story and, you know, they were oversold already so, there was room to go were entering a very seasonally positive time of the year for small caps as well and as michael mentioned, theres a financial waiting to that i would just be cautious about looking at this as more than just a cyclical rally. I wouldnt get too excited i would agree, this is finally the sketch of this tax plan and tax reform we were anticipating and there were a couple things i liked. I think one of the biggest beneficiaries is the Small Business passed through. That would be like llcs and so forth. Down to 25 . The biggest beneficiary there would be womenowned businesses that have grown at a monumental rate increased by 45 compared to 9 among other businesses women owned businesses generate now 1. 6 trillion in revenues. So i think a big benefit there also, the capital intensive industries, i think, and theres a lot of them, tack, telecon, materials, even retailers because theyre going to go more from labor to technology will benefit from Something Like that because of the accelerated depreciation, thats kind of on the table right now. And if youre looking for, you know, fun little ways to see what the market is pricing in michael, you could look to alibaba. Yeah, this is my favorite little one its the former yahoo is altava. The biggest economic value is its untaxed stake in alibaba. You would basically expect this line to be going up when people expect Corporate Tax cut because thats really directly to the bottom line of this company when it eventually liquidates and what you see there is a it kind of peaked when the trump trade did in march and then we had the steady decline until recently where its picked up again didnt really have a dramatic move today right they moved up in sync together, but its one of those things where you can find these individual situations where again, you have dramatic bottom line impact from any tax cut again, i dont think the market as a whole is rushing to price all of this in thats right. Its too early. Thank you guys very much. Thank you our next guest isnt too happy about cutting taxes for the wealthy. Tom steyer, who is founder and president of next gen america. Thank you for having me are there planks of the president s plan you could support when he talks about getting your tax filing for most middle class americans down to single sheet of paper, for example. Well, i think everybody would like to see less tax complexity, but i think that this plan is a very thinly disguised reverse robin hood this is a tax giveaway to rich people that is where the bulk of the money is going to go and we know that the other side of that is its going to be paid for by a reduction of services to middle income americans so this is exactly the kind of plan that is absolutely the wrong idea at the wrong time for americans. So when you say how its going to be paid for are you assuming that theres no offsets and this they are trying to shrink the size of the government on the revenue side what do you mean by that well the estimate, the first estimate that we got of how much tax revenue would go down was 5. 8 trillion. When we know we cant have 5. 8 trillion fewer dollars and if you look all of the reductions were made in direct services whether it was education or health or food for americans. So we know so you think this thing classic step. Starve the revenue, reduce the excuse me i think a lot of people say, you know, this is more of a wish list kind of item than an actual piece of legislation that could pass especially if there is any democratic support attached to it in other words my point is, you know, it may have 5 trillion worth of cuts in there, but theres only one and a half trillion dollars of room in the budget right now well, im not exactly sure where the one and a half trillion dollars of room in the budget comes in been but where that number comes from, let me Say Something that is true we all know that right now we have historic inequality in the United States of america we know that rich people, the top 1 , and im in that group, have profited dramatically at a time when other americans have not moved up at all. So to see a tax proposal that benefits even further the richest americans at the expense of everybody else seems to me to be entirely unfair and illegitimate tom, dont you think though that given the fact that its being presented with the rhetoric of helping the middle class and doubling the standard deduction and actually making some gestures in those directions and saying that the intent is not to simply give tax relief so to speak to people who pay the most taxes at the upper end that theres room in the negotiating process to try and tilt the conversation in that direction . No, i dont im sorry. Id like to be a little more accommodating but i dont believe that for a second. I believe that is a very thin cover for a tax cut for the rich i think that of course you cant walk in and say our goal all along has been to deliver money to our rich donors at the expense of every other american. Theyre going to the rich people at the pex engs of hard working americans. Im not talking about them at all. As far as im concerned, yes, the voters know about the inequality and the voters know that working people havent had a raise for 40 years and they are absolutely determined to try and get that but if you look at the the Health Proposal that just failed, it was a huge tax cut for rich people and taking away health cut health care from tens of millions of americans and raising the price for everybody else this is just the same. They are saying theyre helping middle class people, they are trying to fool middle class people, but really what theyre doing is paying off rich people at the expense of working americans. The people of the country now have their chance to tell their representatives how they feel. Tom, thank you for joining us. Thank you very much for having me. Tom steyer. Up next, romeo and juliette may have been one of the shakespeares famous tragedies, its a major problem for apples ipho 10 neand the facial recognition feature. Well explain when we come right back with our fast take. Hi, im the internet you know whats difficult . Armless bowling. You got this, jimmy you know whats easy . Building your website with godaddy. Pick a domain name. Choose a design. You can build a website in under an hour. Now thats a strike get your domain today and get a free trial of gocentral. Build a better website in under an hour. I love you welcome back and its time now for the cnbc news update with sue herrara hi again kelly, heres whats happening again at this hour everyone former Chicago Police officer Jason Van Dyke appearing in court accused of fatally shooting an African American teen in 2014 van dyke allegedly shot him 16 times, killing him and was charged with firstdegree murder in 2015. Southwest airlines is apologizing after police physically removed a woman from a flight after she said she had a lifethreatening pet allergy but could now the produce a medical certificate. She refused to leave the plane and the airline called the Police Tiger Woods publicly acknowledging he might never return to competitive golf the former number one won the last in 2008 hes only played Six Competitive rounds in the last two years trying to recover from multiple back surgeries a louisiana restaurant facing public backlash after it announced it would not be airing the new Orleans Saints Football Game which occurs on sunday while cafe says that it is taking a stand against nfl players who have protested the singing of the National Anthem youre up to date, thats the news update this hour, kelly, back over to you all right sue, thank you very much and now its time for our extra fast take today, michael we begin with this spat between google and amazon. Google pulling youtube off the show slew of new devices today and one of thems a 35 calling add on for the echo called the echo phone. Seems to me mike that google is getting nervous about losing the home absolutely. Frenemies this time more enemies than friends it reminds me of the walmart look, the venders cant use amazon web services. Everybody overlaps, this is whats happening and amazons launch of the Hardware Devices is interesting what i most like about it. No big splashy event i agree i knew you were going to like that i like the echo buttons. Next, where for art thou, romeo . Kpo two components of his facial recognition system for the iphone 10 according to to the journal and theyre called romeo and juliette, the module, romeo which has the dot projector is facing a bigger delay of the two. This follows all of its screen lay its this summer and any delaying now could hamper sales for the Holiday Season and also considered to be that one feature of the 10 that is really distinguishing from the rest of them so hopefully romeo and juliette isnt a fatal misunderstanding you could have a lot of fun with this. Finally what has happened to green hill the Investment Bank has fallen into such a slump, the founder are investing 20 million as a reorder, kind of an lbo in part. Down 49th in the deal tables but the ceo is defending his salary from last year in saying, quote, youd have to water board me before hed cut thatcom. Yeah, the game has changed. It was always a lumpy business, based on your last big deal and the relationships just arent there. Were not seeing the big huge corporate tieups like we thought and green hill with a smaller franchise. And some are getting squeezed out. Robert frank, whats happening . Hello, just heard from lynn tilten of Patriarch Partners now. Administrative action brought by the fcc, that action now has been dropped didnt confirming to me that the case has been dismissed. She said, i won on all counts. Now this was a case that dated back to 2015, it was an administrative action that related to her disclosure in lone documents related to the more than 70 companies that her company Patriarch Partners owns and whether those investors were misled by her and her company. We dont know how this relates to the many commercial and contract disputes that she still has going on, but this big sec case which is a fraud case has now been dropped lynn tilten telling me that the case is dismissed and she has won on all counts, guys, back to you. Wow all right. Robert, thank you very much. Thank you robert frank now President Trump has predicted the economy will grow by at least 3 and thatll help pay for his tax cut proposal how realistic is that number right now . Former National Counsel director Larry Lindsey weighs in next Richard Trumka out spoken critic and counsel will also join us. Thats a first on cnbc interview with his thoughts on the puics x opreblantaprosal that was outlined today well be right back. Think again. Ew york s . This is the new new york. We are building new airports all across the state. New roads and bridges. New mass transit. New business friendly environment. New lower taxes. And new University Partnerships to grow the businesses of tomorrow today. Learn more at esd. Ny. Gov President Trump just wrapping up his remarks on the gop tax reform plan. The plan calls for three tax brackets with an option to add a fourth for the highest earners and a doubling of the standard deduction to 24,000 a repealing of the estate tax and the alternative minimum tax and a 20 corporate rate joining us now is Larry Lindsey, hes president and ceo of the lindsey group. Larry, great to see you. We just had tom steyer on, he basically said this whole thing is just a giant effort by the wealthy to pull the wool over the rest of americas eyes and give themselves a huge tax break, what do you say i dont think thats accurate first of all, if you look at the personal side on net, youre going to find that most high income tax payers are going to pay more taxes under this bill and the bulk of the tax cuts on the personal side will be for families making between 50 and 1100,000. A lot of those families will see their taxes go down by half or twothirds so, on a factual basis, i think that the distribution of the tax cuts is definitely middle class and not as the gentlemen described it on the business side which is where i think the more interesting pieces are, you left out two important changes. The first and by far the most important terms of Economic Growth is the provision of expensing, particularly for Small Businesses by that it means that when the business goes out and buys new plant and equipment, they can write it off in the year compromise in which they purchased it right now, its delayed over time, and again, as i understand whats going to happen, this is going to be focussed on Small Businesses who frankly need that improved cash flow the economic literature going back to when i was in graduate school, which probably kelly was before you were born is all very clear on this. That this is by far the most powerful thing you can do in terms of Economic Growth and again, i think that focussing this on Small Businesses, as well as Capital Investment, it makes this a very high growth oriented tax cut our estimates based on what we understand of the tax bill is that youre probably going to get three to five years of growth around 3. 2, Something Like that, and then growth dropping down to a more sustained level about two and a half, two six. Larry, by those numbers, those increased growth forecast, you would think result in, i just like to think in agate dollar terms todays gdp level is like 300 billion. So were going to have 150 billion in annualized tax cuts that going to translate into twice as much on the top line, is that roughly the parameters youre looking at . Yes, and the reason for again, it depends upon the precise details of how they structure it, but the economics literature is very clear and i dont mean to be an egghead about this, its not just my view, its widely held view, that the most sensitive aspect of the economy is business fixed investment. And it is sensitive to the aftertax cost of making the investment and so this is a very powerful growth engine. To walk through, you asked for some numbers, so an extra 1. 2 growth means that well have about 240 billion extra a year, so after say five years, thatll be a 1. 2 trillion extra bonus to the economy government gets about 20 of it, so after your five will be recooping about 240 billion more than we otherwise would have collected. On net, i dont think the long run cost of the bill is very high, thats called the dynamic score, but, you know, certainly on a static scoring basis, i think the numbers going to be something over ten years like what the senate is talking about. One and a half trillion. And just to put that number in perspective, one and a half tral is six tenths of a percent gdp, thats very, very small. The obama stimulus bill in 2009 and 2010 was about seven times as big as a percentage of gdp. So, you know, i think this is a very carefully structured tax reform i think its progrowth and promiddle class all right, larry, we have a lot more questions, please come back okay. Thank you. And that is Larry Lindsey. And speaker of the house paul ryan will join on squawk in the box in the morning around 8 30 a. M. Eastern time so set your alarm clocks, you dont want po to miss it yesterday the fbi rocked College Football with the arrest of four coaches on fraud and corruption charges where was the games governing body while all of this was going on up next what the case means for the future of that organization. And working people are being conned, thats what the head of americas Largest Labor federation says the gop tax plan is doing richard drumka will explain next your joints. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement in drug stores nationwide. Prevagen. The name to remember. Of emerging markets obsolete . At pgim, we see alpa in the trends, driving specific sectors of out performance. Where a rising middle class powers a booming auto industry. A leap into the digital era draws youthful populations to mobile banking and ecommerce. Trade and travel surge between emerging markets. Everyday our 1,100 investment professionals around the world search out opportunities for alpha. Partner with pgim, the Global Investment management businesses of prudential. The ciosays there always seems to be plenty of money for millionaires in big corporations but never enough money for working people and first on cnbc, were joined by president Richard Trumka. Thank you, sir, for being here kelly, thanks for having me on and you know, again ill just echo what the president just said here, in his words, i think numerous democrats that support this it is going to be a middle class miracle. Hes going after the same people that you represent, why do you think youre so at odds on this . Well first of all, it is the great con. Any tax plan thats going to be good for working people should do three basic things. One, corporations, wall street, and the rich should pay their fair share two, it should create enough revenue that will create jobs and invest so that we can invest in infrastructure and education to meet the needs of working people in our communities and three, it should destroy all incentives to offshore jobs and profits. This tax plan fails miserably on all three of those things. Okay. Do you think so lets just talk about some of the features that are being pushed on here. For Small Businesses, we just heard from Larry Lindsey, being able to immediately expense your cost is going to be a big help for them, generate savings repealing the death tax, we talked about that time and again. For individuals being able to file on a single sheet of paper. And simplifying the tax code that could save them money on having a tax repair. Are those reasonable things in this plan . So look, kelly, they increased the rate on the people at the bottom from 10 to 12 , they decrease the rate for all of people at the top look, if cutting rates was actually good for things, then kansas should be a superstar you remember, kansas cut their business tax to zero theyve spent all of their reserves, they had two downgrades in their bonds, and they had to reverse that because their economy was lagging behind everywhere there simply is no evidence in theory or in fact to support the notion that cutting rates actually increases growth. Mr. Trumka, one of the three standards you set out there for what would be tax plan friendly to working people was reduce incentives for companies to send jobs and business overseas would it not do that by lowering the Corporate Tax rate here and also kind of equalizing tax treatment of earnings look earned anywhere in the world . Look, look, thats a red herring. And you ought to know better than that. Let me use boeing. Paul ryan points to boeing and said, we need to reduce tax rates so that boeing can compete. From 2002 to 2016, boeings effective rate was 3 . Now, it doesnt get any better than that. Corporate america has three years of record profits. So its not a tax code holding them back, this is the great con. Theyre going to give more to the rich and to corporations, and the people in the middle and the bottom are going to end up paying for it. That, in our opinion, is bad for the country, bad for the economy, and truly bad for workers. So they will say that you cut the Corporate Tax rate it flows directly to workers and employees. Do you just disagree it doesnt happen theyve cut the rate numerous times and it doesnt go to workers. It goes to more bond people, it goes to greater profits, it goes to some shareholders, but it hasnt gone to our wages our wages have been stagnant for almost three and a half decades now. If cutting rates was good for us, wed have been making more money all along. Theres no truth to the fact that if you give corporations more money theyll give it to workers. Unless, of course im just saying the fed itself had a survey and if you could collectively bargain, then youd get a fair share of it. Yeah, the fed had a survey today where it said theres been a 10 gain in income since 2013, that minorities and americans without College Degrees showed the greatest gains in wealth it would seem that improving economy does help everybody. And get the full employment its been stagnant for three or four decades. Anybody, even the most conservative economists will tell you that. And its been bad. Because if you want to create growth, you put money in the hands of workers that are going to spend it. Theyll spend the money, theyll create demand, that demand creates jobs and jobs and creates growth but with flat salary, they cant spend any more than theyve been spending all right sounds like everyone says they want the same thing but thinks the other people dont actually mean what they say anyway, richard, thank you for joining us thanks for having me, kelly, i really appreciate it we appreciate it too, Richard Trumka from the aflcio. The latest pay for play scandal in the ncaa. Next, will this be a major catalyst closing bell will be right back welcome back to iconic los angeles. Im kate rogers. Hundreds of entrepreneurs are gathered here from throughout the country. They all have the opportunity to learn from proven business leaders. The one thing they have in common is making the most of every moment right here inside iconic good morning, everybody iconic is a place where on one day, at one moment in time, entrepreneurs would be entrepreneurs, people who want to invest in entrepreneurs can learn from the people who have done it and achieved monumental success. I think one key thing, important thing, is to surround yourself with people who complement you our priority is to help our instructors save lives, which has become the mission of the company. Im looking to get ideas and inspiration and the courage to cut the cord the speakers here are highly successful they have a lot of wisdom to share. Whats your best piece of Business Advice for people out there listening, and who gave it to you one of my mentors said, if theres someone on your team who can do something 80 as good as you, you should not be doing it. She has two kids, started a company. That was inspirational for me. Be very clear about what the Consumer Problem is and then what your solution is. And i would start there. To be able to come to an event like this and be able to network in a hub of some of the brightest and best brains in the business, its very important to me iconic is still going strong with bestselling author and entrepreneur tony robbins taking the stage today. Head over to cnbc. Com iconiclive to catch all the action. Welcome back in 2016, 96 of the 351 College Athletic programs in d1 were found guilty of committing ncaa rules violations yesterdays fbi arrests of four coaches may be the catalyst the Organization Needs eric chemi has more. Reporter later today, louisville announced it had placed on leave rick pitino and tom church while the school sorts out their Employment Status this after yesterdays arrest in the bribery investigation involving at least six different colleges and a Senior Marketing official at adidas the ncaa says it finds these charges disturbing and has no tolerance for the behavior but will the ncaa do anything about it, given how much money is at stake . Consider just adidas and louisville last month they signed a tenyear, 160 million sponsorship extension. Thats with their coachs history. Pitino has had several runins with ncaa rules and kept getting one big job after another. Nike and under armour each have their own massive deals with schools. College sports brings in 10 billion a year, much of that coming from television partners. That makes it tough to want to stop the system. Experts have said the ncaa itself is understaffed and not fully set up to investigate all these crimes and rule breaking other experts told me today that many players and families are getting paid but only a few are unlucky enough to get caught one family asked how much money adidas reps could pay because a rival school was offering 150,000 to go there its a much bigger and tougher problem to fix even with these arrests. Back to you, kelly something has to force the issue, well see if this does. Eric, thank you very much. Next, google goes to washington and Golden State Warriors owner speaks out on donald trump and the nfl protests and tony robbins gives his best advice for investors. But right now, our bond is fraying. How do we get back to us . The y fills the gaps. And bridges our divides. Donate to your local y today. Because where theres a y, theres an us. [he has a new business teaching lessons. Rodney wanted to know how his business was doing. So he got quickbooks. It organizes all his accounts, so he can see his bottom line. Ahhh. Thats a profit. Know where you stand instantly. Visit quickbooksdotcom. A news alert on google Kayla Tausche has the details. Kayla . Reporter kelly, as lawmakers seek to get to the bottom of russian meddling in the 2016 election, it appears google may be due for questioning on capitol hill, according to politico, who cites three sources familiar with discussions between the Senate Intelligence committee and google, who say that google has been requested to appear in front of the committee to talk about this the politico report also says facebook and twitter are already cooperating with the committee we know that facebook has long been in the crosshairs of investigators as they seek to learn exactly how maybe these russian ads were purchased, how they were monetized, and who exactly was targeted during the 2016 Campaign Season well wait for official comment from these companies but it appears that the net is being cast wider than we may have originally thought in this investigation, kelly have they set a date for that facebook appearance yet . Reporter im not exactly sure at this point, kelly. It appears that twitter executives will be on the hill on thursday. Were still waiting for the exact details about the facebook meeting as well as whether google executives intend to appear as well kayla, thank you very much. Michael, i guess its not a surprise, theyre the sort of ad platforms online exactly if theyre worried about one, theyre probably worried about the other. Without a doubt, in terms of the aggregate dollars involved although google is a little bit different, its not necessarily targeting people in the same way. Did trump file for bankruptcy right its usually pretty transparent. Google will try to make that case michael, thank you as always. That does it for closing bell today. Fast money starts right now. You just want massive tax cuts, thats what you want thats the only reason youre going so wild. And go wild they did. President trump promising major tax cuts and that sent stocks soaring to new highs. That song can only mean one thing, more money in your portfolio. Small caps went nuts today also a record. For those keeping score, the s p 500 has created more than 3 million in marke