Page 5 - Rate Reduction News Today

From 35% to 20%. which means the european countries are probably going to have to respond with a lower rate of their own. second complaint is that the u.s. bill includes some provisions that may violate some of the international trade rules the u.s. agreed to. because of that, we expect the european countries to probability retaliate. >> dana: would that be successful? >> it could be. i mean, thats going to be up to the wto. thats a very long process. it would have to be adjudicated by judges el...

Against the loss in the value of the state and local tax deduction, which i agree with you, i think it is good policy to stop forcing low tax jurisdictions to subsidize high tax jurisdictions, but whats the net effect? sure, you lose some value if you lose the deductibility, but keep in mind, we take the -- the top bracket does not kick in as low an income level under our bill as it does under current law, and specifically the point at which that highest rate, which in the senate bill is 38 1/2 ...

Against the loss in the value of the state and local tax deduction, which i agree with you, i think it is good policy to stop forcing low tax jurisdictions to subsidize high tax jurisdictions, but whats the net effect? sure, you lose some value if you lose the deductibility, but keep in mind, we take the -- the top bracket does not kick in as low an income level under our bill as it does under current law, and specifically the point at which that highest rate, which in the senate bill is 38 1/2 ...

Are still lumped into that and those are the ones who will hire more people and pay them more money and then the money theyve got left in their pocket-- >> with all due respect this tax bill, listen, he would have been on firmer ground if he said this tax bill didnt give enough benefits to the small businesses which it doesnt. he would have been on much firmer ground if he turned around and said lets be clear lowering the corporate tax rate -- >> kennedy: and that the the senate version of this ...

Doesnt look like republican small government tax cutting plan. >> i think because weve got so many moving parts in there. i think the main thing that the american people wanted was a reduction of the rates, and thats what we have. the senator really nailed it in their plan today the top bracket so everybody gets a rate reduction. at the same time, we dont have this dynamic scoring. you have to figure the dynamic scoring is going to pump up the economy and bring in more revenue. thats the first s...

>> thanks, neil. >> neil: the early differences are that the senate wants to stagger or delay the corporate tax cut. is that a nonstarter to you? >> thats not where we are in the house. thats not where the president is. so this is a negotiation not just here in the house and the senate but also with the white house and the president has a really important voice in this obviously. we wouldnt be in the game for tax reform if he did not win the election a year ago. so everything is in play at this ...

>> melisa: theyre saying the corporate tax cut is for rich people? is that how you see it? when you cut taxes for corporations they hire more people and invest and raise wages. that doesnt go to rich people but working people. >> thats a longer debate. there certainly could be benefit from streamlining and reducing the corporate tax rate. the actual rate is closer to 15%. still, when you look at the rate reduction from 39 to 35%, you look at the estate tax and the new provision that will allow r...

, always a pleasure to see you thank you for joining us. >> absolutely. >> maria: what did you hear from kevin brady that gives you more detail about that plan next week >> well i think the big six, kevin brady head of ways and means as well as the white house and senate folks they agree on what needs to be in the tax cut. what theres still a discussion about is how much rate reduction , how much full business expensing, getting rid of the tax and alternative minimum tax are consensus issues , h...

If you go to current policy as opposed to current law. thats one way to have a larger tax reduction thats permanent, making sure you have accurate explanations of projections of how much revenue come from growth. that allows you to cut more tax rates permanently. >> maria: yeah. those are the debates that have to show a little ankle before they have the budget because a lot of republicans in the house are willing to swallow a budget thats not terribly attractive or aggressive or doesnt cut spend...

My opinion. but then youve got smaller businesses so-called pass-throughs, youre looking at 15% rate for that? >> we are looking at dramatically lower rates for them as well. look, we have a lot of our businesses and jobs who are not in the corporate side of things, they will not be left behind. we want -- we propose in the house plan equal 40%, 43% tax rate for all businesses whether youre mom and pop on the corner deli or the largest corporation of america, we want to deliver that type of equa...