A lot of activity. We are starting to come back, may had 2. 5 lien net jobs, and june, 4. 8 million net new jobs. Both of those are historic records. We have never had that much job creation before, because it is not as the economy was weak and getting stronger. The economy is strong. It was shut down in many parts and as it opened up, it is returning to the more robust economy we had. Nothing has changed. Lower taxes that gave us growth are still there. Deregulation, which as of a year ago is saving 220 Million Dollars a year in terms of excess costs because of the changes in regulations. That is the old number strong. Hey have not yet come back revenues for state and local governments are lower. There has not been as much activity by the state to rein in spending, recognizing this challenge. Some states have good, robust rainy day funds. Minutes go for about 40 with rainy day funds. Host in terms of federal response, 2. 6 trillion in federal money so far passed by congress. Do you think most of that response has been appropriate and well used . Guest it is not only government programs. There will be massive errors and mistakes and checks going to people and companies that do not exist but given that it is a brandnew program, one expects problems like that. The government did a calculation they think they preserved 51 million jobs so far with the paycheck protection plan. That was helpful. Those were jobs threatened because of the government shutdown, not the restaurants, not that some company was stupid and lost money, so it should go bankrupt because it was misspending its own resources. These are economic problems caused by the government, like when a government decides to build a road across your form, they have to pay you for the damages to your farm. Was to try to keep people employed, not lose their jobs and go on unemployment. That has certainly stabilized job loss. People lose their jobs even in a Strong Economy. Jobs are created, jobs are lost. It is that what you would expect to have them in a regular economy, people leaving or coming back. That has been helpful. One challenge is when they increased, they put a federal addition on the unemployment compensation. States have state plans, usually covers half your salary after a certain point. It is a good cushion. Not the same thing as having a job. It gives you something. Week fordded 600 per 2400 per month for four months, temporarily. Most of the federal response, almost all, has been temporary reforms. That is helpful. You dont want a temporary problem to always be here and make permanent changes, 100 years from now you are still paying for the covid program. They have avoided that. Because they added the 2400 a month onto state unemployment for 63 to 68 of americans, they took home more money unemployed than employed. It will discourage bringing people back into the workforce. That ends august 1. You should see significant people returning to work. The washingtonp, post points out a photo from last year. Americans for Tax Reform Foundation took a loan of 150,000 to 350,000 from that program, the ppp. Betweenthe difference your foundation and americans for tax reform. How did you use the money from that loan . Guest americans for tax reform is a Political Organization that fights for lower taxes and less money. 4. 1 c that was not open to the ppp programs, received no federal money, would not take federal money. The foundation is like the brookings institute, which is a foundation that does research. Foundations and companies were open to keeping people employed. We laid no one off. I took a pay cut. With atr. We did not have to lay anyone off, which is exactly what ppp was looking for. Whether you are a foundation, university, college, notforprofit, they wanted those jobs protected as well as what we think of a Manufacturing Firm or company. It is for nonprofits and for profits. The goal was to make up for the damage, telling people they cannot fly places or do certain work, does to any nonprofit or forprofit. Host do you think your organization will need additional aid for employees . Guest i dont think so. It was badly hurt at first. Conferences and so on that they organized, and they were all canceled. That will not continue forever. I think that is fine. We have been able to protect jobs and keep people working, which is the point. Unemployment can cost the government in some other way. You never know how other ways you could have done it. We have been advocates of the idea of eliminating, for six months or one year, Social Security tax, fica tax. That would drop the cost of hiring someone for a Company Nonprofit by 15 . Expensive ands they keep more of their earnings. Workkes coming back to more remunerative and less expensive to keep someone in a job or to hire someone new. The president expressed interest in the idea. Less support in congress. It is always brought up as an option. It has been done in the past. Host what impact might it have on Social Security . Reduce revenues to the trust fund . Guest they have done this in the past, simply saying, the federal government will make up the money not collected for Social Security. It adds to the deficit. If you spent the money on some other program, it adds to the deficit. This is a tax cut you do deficit spending into the Social Security program. Social security, thank you for asking, wait a minute, are we not fully funding Social Security . All the money that would have been raised for Social Security would be raised, similarly through the income tax and right now through deficit spending. That is one proposal. The most important thing to do is consistent with Health Concerns to open up those parts of the economy that can be opened. There weretates, some mistakes made. People were told they could not go out in a boat in the middle of a lake by themselves or they could not play golf by themselves. But it is ok if you wandered around on the golf course, but not if you have a golf club, this was the governor of michigan. That has nothing to do with health. Jobs, with masks, can be done safely. We need to move more and more of that as quickly as we can to get people working. Covid,lth concerns of there are also Health Concerns of people not being at work, Mental Health and because they told people, you cannot come into hospitals and do certain elective surgeries, people have been putting off surgeries. We have seen an increase in death from other things, that maybe because people dont go to the hospital and let something go longer than they should have. The cost of the reaction to covid is not just more unemployment. It is also a health cost we need to keep down. Host our guest is the president of americans for tax reforms. We approach july 15, moved from april 15, tax day, because of the pandemics. We welcome your comments. 202 7488000 for democrats, 202 7488001 for republicans, 202 7488002 for independents. Calls,we get to headlines from the wall street journal. Mnuchin sees new stimulus. Talk of Mitch Mcconnell interested in additional spending. What is your view of more federal response, monetary response to the pandemic . Guest the different ways you can do it, certainly there are tax cuts you can do to make it easier to hire people and keep people hired. Some of those were down in the first plan, in terms of companies losing money, could you average tax burden over forward and backward so youre not paying more or less in taxes but you even it out. That was helpful. Saved a lot of companies. That was a good idea. Is, whene challenges you talk about stimulus, if you take a dollar from somebody and give it to someone else, you have not stimulated the economy. If you take a bucket of water from one side of the lake and walk around the lake and pour it back in, you have not stimulated the lake. You simply moved it. We have this challenge when obama did 800 billion in what he called the stimulus package. We have the weakest recovery sincethe Great Depression you did not change the incentives to people to work, save and invest. You just threw a bunch of money out there. That can be helpful in a crisis. If there is nothing else. It does not stimulate the economy. Both, the Vice President said they wanted to keep it to 1 trillion, which for washington, is restraint, and there are concerns we need reform. Trial lawyers have been talking about suing the people who make vaccines. That will delay vaccines. If people go back to work and get covid, can you sue everyone involved . Which pace, people wont be hired. In which case, people wont be hired. I think reducing or eliminating Social Security tax for the rest of the year is a way to increase wages and reduce the cost of hiring people and keeping them and that would give you a real impact as a way to do it. Host one of your notable quotes, paraphrasing, you said in the past you dont want to get rid of government but you would like it small enough to drown in a bathtub. Extending the metaphor, could a government the size of a bathtub respond to Something Like this pandemic . Guest that is an interesting issue. What is the response to covid . What did we learn in health care . 700 plus different deregulations, getting rid of laws, suspending regulation, because we found they got in the way of fighting against the virus. Americans for tax reform, atr. O rg rules, look for the deregulation. Deregulations. Cdc announced we will come up with a test. No one else is allowed. Six weeks, they did that. They came up with a test that did not work. Instead of going to the various companies, universities around the world and the u. S. In saying , what do you got . Come up with a test. We will buy it. For six weeks, we had a government monopoly, cdc, saying they were smarter than anyone else and no one else could do it. It was opened, we got lots of different testing and accurate tests. We have plenty of testing out. We lost six weeks because government bureaucracy got in the way. Cdc wanted the tests. Rules. D all these fda has a lot of rules on a new drug. They are going back to some progress we made in the fight against aids. All of the things the administration did that got in the way of speeding things up, they sidetracked that for aids. We should do that for all new drugs. Forward asmove it safely and as quickly as possible. When you come up with a new medicine that saves 5000 lives per year, ok, but it took you 10 years together, that means 50,000 people died while you are waiting for that. Maybe you have to spend some time testing but was 10 years necessary . Maybe not. Levelare laws at state where a doctor across the state line is not a doctor in the next eight or a Nurse Practitioner the next state or a Nurse Practitioner, and those things have been put aside because they had to move practitioners across state lines. Most of the problems have come from government being too sporadic. Governments are always monopolies until you take it to the local level. I think we have learned a great deal, it has been helpful, and we can avoid some of those mistakes in the future. Government was too large, too monopolistic and stop others from helping and got in the way. Remember the plastic bag bans . A bunch of cities did that. They found that those onetime use plastic bags were very good in avoiding getting covid or other viruses because we have those bags you use again and again and again, they build up problems. Plastic bags got people sick. Government telling people what to do and how to take care of their health the dogooders wanted to ban plastic bags kill to some people. Host lets open it to callers. South bend, indiana, donald. Caller i told the screener i will be civil. Listening to this mans spiel. Said about theu infamous quote. Here if thise Current Administration have gutted the people that were supposed to go potentialght such epidemics guest do you mean china . Caller listen to what im saying. I understand people dont like to pay taxes. I understand that. There is a role for the government. This is a classic example where people,rnment who had Health Care Professionals ready to help uswherever pandemic or virus at bay. I think people like you and i think people like christian you, youou people like are responsible for what we are going through right now. I hold two people you responsible. If you want to know why i hold christian responsible, it is thisof how he project read map and how that has gutted our governments that were so onesided host i will let you go south bend. He has not followed what happened. The idea that governments fix things. Communist china is a big, powerful government. They decided to lie to the world about the nature of covid, about whether it was spreading and they knew about it for some time. Then the world health atanization bought the line the same time telling people, this is not a big deal. The idea that we have too little government is counterfactual. Communist china is a Big Government which decided to lie to people about the problem, lied to the world and the who. The reason why we are pulling out of the who is they were praising the chinese for the stuff they were doing and not playing a role of getting information out but basically repeating i understand governments dont like to be embarrassed. That is why governments and monopolies are problematic. They dont like embarrassing things. You go through a list of how we got from here to there, too much government, too much intrusive government allowed this to spread faster. Governments lying to people, not letting people have information. Dictatorship and how it runs its politics. They have a government monopoly on the press. They did not allow americans to show up and look around. If the u. S. Have enough resources on the ground early enough in china, cdc or otherwise, you pointed out your issues with the cdcs slow response. What about on the ground in china . Could we have had a better presence . Communist chinese had given permission having people on the ground walked around by communist chinese officials would not necessarily have bought you more. In all the preparations, for the virus, or spent down early in the obamabiden years, not replaced. This idea that government plans ahead terribly well is counterfactual or that joe biden and obama did a good job there is counterfactual. They never brought us back to the stores we had. I think we should have them stored in private hospitals, private capacity, so we dont rely on the government to tell us, oh yeah, we got enough. How do we know . Clunky andis big and does not get things done quickly. They set up monopolies and tell other people they cannot participate. That is what the cdc and fda did. The swiss tested drug. We dont care what you think. We will spend time and do it all over again. Japan says the u. S. Will look at it for a month. As long as their tests look good, that drug is available here. They dont replicate the expensive american process again. There is no reason why we should and coming up with vaccines, have to replicate serious work from the swiss, german, japanese universities in efforts, or companies. There is a lot we can do. Competition always beats monopolies and government is always a monopoly. Host renee, waterboard, waterburg, connecticut, republican line. Caller hello i hope you can be as honest as you can. Guest ok. Caller i am wondering why did someone with as much education, wealth and backing behind you feel you needed to take the cares act for your nonprofit and at the same time you are asking for smaller government, yet you are taking this money and you have all this power, knowledge, friends and do you feel at all guilty for the momandpops that cannot get the money now because you took it and was there any alternative you could have done in your company with all your wisdom to have not taken that money . Host renee, thanks for that. Guest we have been through this. That call was on the republican line . Look. The point is, what we are trying it has plenty of resources, so her assumption of crowding out is not true. It is a loan. Your goal, when you get badly damaged as a company or business or foundation or school or university, to try and make sure you do not have to lay people off shortterm. Reform, ther tax Sister Organization of the foundation, we did not oppose the plan for just that reason. This is an effort by government to fix a problem the government created. They shut your business down. They told you you could not go to work. They made the planes not fly. As a result, it is reasonable for the government to make some effort to make people whole. We want to do it in the most effective way possible. Ituggest a better way to do is to temporarily reduce or eliminate fica tax. Junction,ett, grand colorado, republican line. Caller good morning. I would like refer to a place in the constitution on taxes. Maybe you can explain to me and your audience. Section one, i mean, article one, section 8, taxes throughout the u. S. Should be uniform. Could you explain the uniform part as far as percentage goes, how that would balance out with people . I would also like to encourage people to read the constitution. Wordt through it word for since this impeachment thing was going on. I would like to make a small comment about the guarantee in the constitution, for the democrats, to look for the word democratic or democrat in the constitution or the confederation papers, section, article 4, section 4, it refers union, the in this United States shall guarantee to every state in this union, a republican form of government. Democratin there anywhere. Guest because taxes have to be uniform, that was the reason they struck down original efforts to get income tax because it would discriminate among people based on income as opposed to a sales tax or head tax or property tax. Downresult, it was struck by the courts. They had to amend the constitution to allow the income tax to be put in. 1913, it wasut in, 7 . You had to make 11 million to pay 7 . Below that for everybody else. All taxes tend to grow. Income tax was put in, partly as a result of trying to replace the money lost during prohibition. They wanted to get rid of liquor sales in the country. The prohibitionists helped get the income tax because people said, we cannot outlaw this, that is a lot of revenue