For a first look at what the republican sales pitch will look like, we welcome kevin cirilli. He has been reporting right through this. Now to how they will sell this to the American People. What do we know . Ago, i was moments speaking with some senior republican aides who tell me that at 5 00 tonight, they will have this house Conference Meeting behind closed doors, and they will have to hash out the details of the continuing resolution. They will have to rebrand their pitch to the American People. Polled say they think their taxes are going to go up as a result of this plan. Republicans are pushing back against that vehemently, the democrats are making the case that they feel this will only benefit the wealthy. Know that and i both they are blaming it on the media, pretty standard move, saying it is all our fault and we are misselling this thing. At the cabinet meeting, the president said it is fake news, fake news. Thewill they make sure American People know what they got and what they do not get . The real sense is that it benefits the wealthier, rather than the middle class. Kevin right, and it is not just the lowering of the Corporate Tax rate from 35 to 21 , but the passthrough rate to 20 . Make no mistake, the president also declaring political victory by saying obamacare has essentially been repealed as a result of the repealing of that individual mandate. He has not talked about the cautionary reduction payments or the cfrs the cost sharing reduction payments. That puts centrist republicans at odds with the deficit hawks. That will be a clear marked down in terms of where the party is headed. End of this at the week on the vote to keep the governmentfunded. But President Trump doubling down, saying this is a bill for the middle class, saying this is making good on a campaign strong andis despite vocal democratic opposition. And talk a little bit about the spending bill coming up later this week. Friday would be good deadline. Ast are we expecting to see everybody tries to add these extras onto the funding bill . Kevin senator collins made a deal with Mitch Mcconnell to keep funding for the obamacare subsidies. Remember, President Trump vowed to get rid of them back in october. To removeally said that from a longterm fans to monthly funding. They have allocated 7 billion in calendar year 2017 for these cost sharing reductions. 6 million enrollees have access to these subsidies, and that is why this is such a big deal for people like senator Susan Collins. Republicans i talked with in the house say that while senator collins may have made a deal with the senate, no such deal exists in the house of , especially with the House Freedom caucus and republican leadership. So this showdown could bubble over at the end of this week. It is suggested that they are trying to get a onemonth extension to january 20. Regardless, tensions will start to bubble over in 2018. David megan murphy is the editor of bloomberg businessweek. How much pressure is going to be on Susan Collins now . She thinks she has a deal. Megan we saw senator collins anger bubble over a little bit, calling reporting of the issue sexist. One thing we want to emphasize ve families, real life and there is an issue with obamacare and funding the chip program. These are meaningful issues to these families, and this is what senator collins in several centrist republicans know. There are these stories about people unable to get health care, unable to get at the pin epipens, unable to get basics that a family relies on. It is an ethical point of view and a moral point of view. She feels like she struck a deal to support these changes and make sure we can come forward with a new deal in the new year. It is not clear right now. The House Freedom caucus looks nowhere close to a deal. I was interested in the president s comments that essentially he killed obamacare. Again, whether they are playing the politics right on that, i do not think it is clear right now. But this is going to be rebuilt and replaced by any repeal and replace by any other name. There is no meaningful substitute or replacement. The news commentary, which he is known for, that can come back to hurt him. Shery he said it will be replaced by Something Better. I wonder if there is such an incentive to do that now that they have the tax cuts done. Megan they had eight years to come up with Something Better and did not come over the line then. This is a big win for them. But we have talked about whether or not this is a true political win, that will filter through in the coming months and years ahead as the tax cuts filter down and we see the trajectory of the american economy. Will usenably, they this as a launchpad for a new legislative agenda. They will be looking at infrastructure and entitlement. We will see if there is enough political strength to get some of this done. To do something controversial and divisive is hard to do. Credit to paul ryan and kevin brady, but there is a lot of light left to come. David sure. Thank you for being here. Now lets check on where markets stand with julie hyman. Reactiont seeing any to the confirmed passage of this tax bill. We have seen stocks rallying in recent days. They close to unchanged today, bouncing slightly between gains and losses. The interesting action has been in the bond market. Even as stocks have rallied going into this vote, we have not seen much action in the bond market until about a week ago. If you look of the fiveday chart of the 10year yield, it is up 14 basis points in that time, now at 2. 48 , around the highest since march. Now we are seeing a little bit more of the prospects for growth or the assumptions for growth being intertwined with this bill. It is priced a little bit more to the bond market. That has implications for the stock market. While many corporations are seen as benefiting from the tax cut and other measures within the bill, Interest Rates and so Interest Rate sensitive stocks are being punished. Real estate is down. Utilities is down. Some strength and financials but not as much as you might guess, especially considering that might mayo of wells fargo raised estimates on 18 banks today, and part because of the bill and that rise in rates. Interesting that we are not seeing as much reaction to all of that in todays session, just sort of the negative of higher rates. Something else outside of texas, lets look at bitcoin Something Else that side of taxes, lets look at bitcoin. A bit of a selloff in the cryptocurrency, even though trading is up and running. We have seen an 11 decline over the past few days. It is back the low 17,000. We have been watching the bitcoin proxy stocks. Over the past couple of weeks, they are still solidly in the green. Microcap companies that have associated themselves with cryptocurrency here. A Furniture Company now says it will introduce a blockchain opponent. David thank you. Shery coming up, republicans notching a big win with her tax bill, but now they have to sell it. We talk with a republican from the house ways and means committee, next. This is bloomberg. Shery this is Bloomberg Markets balance of power. David once in a generation, the house makes a fundamental revision to tax code. This time, the man at the center of it all is representative peter roskam, republican of illinois. He joins us now from illinois. Good to have you here. First, congratulations. You wanted this done and got it done. There seems to be a sense that there is something of a confusion or misunderstanding on the part of the American People about what this really does, that americans do not appreciate how good this is spirit do you agree, and what is the cause of the confusion . The goodam here is news, that tax policy itself is good. It will offer middle income tax relief and tax relief up and down the spectrum. It will create a Better Business environment. In 1986, when the last landmark tax reform under Ronald Reagan was completed, that was polling at 18 when it was passed and ultimately became very popular. What we have to do now is communicate the nature of what this does and ways that people can relate to. There are two popular areas where it will come to fruition quickly. Early next year, workers will be getting paychecks and the withholdings will change. They will have more money. And as they are seeing a Better Business environment in the short run an intermediate run, they will see that it is related to tax policy. I am very upbeat about where we are and where we need to be going. Shery people will not be happy if their taxes go up next year. We know deductions have been capped at 10,000 at 10,000. Can you sure everyone in your district their taxes will not go up . Rep. Roskam we have to talk in terms of brackets and averages, obviously. In my constituency, every tax bracket will be getting tax relief. Criticism about the state and of theax deductions, one reasons i fought hard to make sure there was a deduction up to 2000 for property taxes, which was expanded to include income tax and sales tax, the larger point is to say that is one element of tax change. If that is the only tax change made, criticism would be valid. But the rates are being greatly reduced. The Child Tax Credit is essentially being doubled. The elimination of the alternative middle income tax are incredibly significant. Even as we have been talking, we received a statement from the president , partly directed to you. He said i promised the American People a big, beautiful tax cut for christmas, and that is exactly what they are getting. I want to thank the members of congress, that includes you, who supported this historic will. It is extraordinary for american families, workers, and businesses. Families, workers, and businesses that is not the perception. This is different from reagan. In the reagan situation, there individuals. There is a perception this will benefit corporations more than individuals. Rep. Roskam it is a fair point, but the proof is, looking at where the tax rates come we made a threshold position to make a Better Business environment. We have heard that the u. S. Has the highest statutory rate and were losing on the international site. Lets not stand for that anymore. Lets make it more competitive. There are a lot of things the Business Community came to the table on in terms of closing loopholes, but they were willing to do it because they got the rate lower and got full expensing for five years, which is incredible. Movingward, forward, the more people learn what is in the bill, the more they are saying, oh, that is good. Threshold decision, democratic colleagues, but there was an error. Rather than engaging substantively, they used the same playbook they played on health care. As a result, the language of the democratic criticism was hyperbolic. It was armageddon, worst bill ever. Completely ridiculous. When it comes to fruition, people will say, oh, this is not armageddon. I like it when my taxes go down and i have more money in my paycheck. Shery it could be armageddon for some for some who see premiums go up or they lose coverage. Senator collins has a commitment to help stabilize the insurance market. Mitch mcconnell wants to put that into the spending bill. Are you ok with that . Rep. Roskam i do not buy the premise that people are losing under this bill. The repeal of the individual mandate says he will not be taxed by the federal government if you do not by a product that the federal government requires you to buy. I do not buy that this means loss of coverage. Shery you do not want those legislations in the spending bill . Rep. Roskam there is more to it than that. Issues related to the commitments or discussions that were made over in the senate. I want to have a clear understanding of what is in that end of the year built and make sure it is what it purports to be and that theres not something new in it. I have an open mind, but i want to make sure it makes sense for my constituents. David congressman peter roskam, republican of illinois. Thanks for joining us today. Lets go to mark crumpton. Mark as we have been reported, President Trump is claiming what he calls a historically or he following congressional passage of the republican tax bill. Prior to the cabinet meeting, the president told reporters that thanks to Paul Ryan Ryan and Mitch Mcconnell, the legislation was done before christmas. The president said the tax bill essentially repeals obamacare by eliminating the tax penalty for americans who do not carry health insurance. Congress will go straight from the tax bill to a fight over a mustpass spending bill. They need to pass the measure by friday to keep the government operating. They are trying to avoid a shutdown. Republicans may have to make some concessions to democrats, but they cannot afford to alienate conservative republicans. The agencies that owns the track were an amtrak train derailed monday said radical speed criticalnology speed control technology was not in place. They said work to install the sophisticated gpsbased technology is not expected to be completed until next spring on the newly opened 15 mile span outside of seattle. Officials say the train was going 80 miles an hour and a 30 mile an hour zone. Three people were killed and dozens injured. The finance minister of denmark leaves this round of brexit the gershenson and negotiations will drag on past the deadline. There is a desire for both sides to show flexibility. Important that we take the time to negotiate a fair deal for the u. K. And for europe. I believe it will take much longer than the time we have. I think there will be some sort of intermediate agreement on how to trade with each other until there is a final agreement. Mark meanwhile, the European Unions chief brexit negotiator said today that once the u. K. Officially leaves the bloc, the transition will end on the last day of 2020. Global news 24 hours a day powered by more than 2700 , journalists and analysts in more than 120 countries. I am mark crumpton. This is bloomberg. Shery many on wall street are having a change of heart on the gops tax overhaul. What is topping the list of concerns . That is next. This is bloomberg. Were wall street traders waiting for the republican overhaul of the u. S. Tax code. Now that the moment is here, many are coming to the conclusion that the real gains will go to billionaires and captains of the industry, leaving them in the trenches. Joining us is bloombergs laura keller. What is topping their concerns . Laura i think the biggest thing is deductions. They are worried about having less ability to a deduction mortgage interest, state and local taxes. They have concerns over the passthrough arrangements, where they are not going to be like smaller businesses. David but they will not be distributed like now. Laura it will be better. David they will just not get the breaks. Laura exactly. Smaller businesses, like they greece even, if you are a Small Business owner, you will have a bigger right like bakeries. Shery will more people go independent . Laura i think so. When you talk about Financial Advisors who get paid with a corporation, they may take this opportunity to go out on their own. If they are a smaller business, getting the credits would be better for them. David these are not poor people. They are making a fair amount of money on wall street. There are ways around it. They will find some fancy way, some offshore partnership or something. Is there a way around this . Laura i do not know if there is a way fully around these issues, but people are already combing through this with their accountants and tax lawyers. Hedge funds are structuring themselves so they can take advantage of what we may not know quite yet, what may come through the bill. Shery what about moving . Laura some people are talking about, but it is harder to do than you might understand. David if you are working for bank of america or jpmorgan, will they move the bank for you . Laura there are some cases. They are trying to be creative in how to deal with this. David there is pressure on new york state, connecticut, new jersey to not spend so much money. Shery one thing they cannot dispute is that the rate has come down for homeowners. Laura there are certainly benefits. These are people who supported a lot of republicans, gave donations to them, wanted a tax break, but this tax bill is not what they wanted. David laura keller, thank you for joining us. More Bloomberg Markets balance of power is coming up. This is bloomberg. This is david Bloomberg Markets balance of power. Shery lets get to the headlines with mark crumpton. Mark President Trump is celebrating the passage of the republican tax legislation, claiming it fulfills his campaign from us to repeal the Affordable Care law. The package was passed in a revote i the house today. The Senate Approved the legislation early this morning. A federal judge has ruled ruled that a former congresswoman be jailed during her appeal of a recent fraud conviction. Wasuro career brown sentenced to prison for fraud and lying on her tax returns about eight purported charity for poor students that she used as a personal slush fund. Fire crews in california are bracing for the return of a potentially dangerous wind gust that they fear could revive the flames. Firefighters have been calming the conditions in the containment line. The blaze has burned for two weeks northwest of los angeles and the5 contained second largest in california history. Officials say that the new wins could cause it to grow into the state las vegas fire ever. The disgraced former archbishop of boston whose failures to stop child molesters in the priesthood triggered the worst crisis in american catho