President s speech, which is with just one hour to the closing bell, imminent. What do we have . One arm on the farm bureau and one eye on capitol hill where both have very active political scenes. In d. C. , Mitch Mcconnell and House Speaker paul ryan explaining why their unified plan will make the complex american tax system fair and simple. Here it is. This is a onceinalifetime opportunity that is all about more jobs, fairer taxes and bigger paychecks for american families. For all of us, this is a new or never moment. About getting america going again and growing again, providing jobs and opportunity here rather than overseas, providing middle class tax relief for hard working american families, so they can get ahead. Liz i just want to let you know, we are getting embargo details, which means we cannot tell you exactly how his speech is going to go, but heres what we know so far in advance of that, before we know his speech. The gops plan would cut the current Corporate Tax rate at 35 to 20 . Small businesses, which are sometimes called passthroughs would see a 25 tax rate. The plan in essence collapses tax brackets from seven down to three with a possible fourth rate for the wealthiest. Maybe somewhere in the vicinity of 37 to 38 . Now, the proposal we also understand would double the standard deductions for individuals and married couples. Also expected, ending the estate tax and the elimination of state and local tax deductions, which, that one controversial right now. Unveiling it is one thing, passing it is another, and i can guarantee you, folks, the minute the president is done speaking, the negotiating will begin between democrats and republicans, and that is the big key. When i talk about eliminating the state and local tax deduction, why is that controversial . Because it hits mostly blue states california and new york. We already have one republican, peter king, saying that is definitely a nonstarter. He says that will hit hard working americans who live in his state of no, so he does not like that. Let us bring in republican congressman mike kelly from pennsylvania, and gentlemen, were waiting on a democrat here, were waiting on democrat brian higgins, from new york as well. But ill first begin with you, congressman kelly. Its all very nice to come up with these ideas and from the start, the democrats have said the red line they would not cross would be tax cuts on the extremely wealthy. In this plan, top income earners may have to pay more when you factor in taking away the ability to deduct state and local taxes. What does that really mean . Is that the carrot that gets democrats to the table ready to work with you, the gop . I think were going to find out real quick what brings it to the table. This is what i expect to have happen at the launch of any happen, i dont what were talking about, legislation, polarized at the beginning. At the end of the day, after all the smoke has cleared, what are we try doing . This is a progrowth tax reform thats going to make sure that we can compete globally when it comes to corporations and every single hard working american has more takehome pay. When you look at that, theres no disagreement between republicans and democrats on that. Some of the other issues, is that a problem . Yes, its always a problem, when you lower the rates, you have to take a look at deductions to find out how are you still going to keep enough money to run this wonderful country . Cutting rates is one thing, but the other are the things people look at. Its the net that people worry about. Liz any successful passage of any bill in the past required compromise and perhaps concessions. What do you feel you are ready to concede if the democrats say well give on this, what will you give on . You know, im an automobile dealer, never any time that i looked at selling a car and said unless i get what i want, im not selling that car. Heres what i would say, were trying to get to a tax, a tax code that people can look at thats simpler, fair, puts more money in paychecks. Makes us more competitive. What are we willing to give on . I dont know, what are democrats willing to ask for, we know its bipartisan. I tell you what, we have a businessman in the white house thats driving this thing and driving it in a way nobody has driven it before. Very high expectations, High Energy Guy that gets all these things. When you listen to the president and we find out in a few minutes what his plan is, this is a joint effort, and i think thats what the American People expect. If its all republican or democrat or us not able to get along, thats the worst thing that will happen right now. I will say most americans, red or blue, democrat or republican, would love tax relief, but they will not in certain states get it if the deduction for state and local taxes gets eliminated and some of those states, in fact most of them are blue. Somewhere purple like florida. We have a lot of retirees with little income living in florida who pay a significant tax bill theyve been able to balance because they could write it off. Thats a punch to the gut for some of the states, is it not . Sure, its a punch to the gut for some people. What im saying, im going to repeat it. Wait until we get the package put together, go to work on it. Both sides of the aisle doing it and working for the American People. Sometimes we get too wrapped around the axle early on, and i cant go along with that because of this. Wait a minute, what if we can soften that blow . Make it more sensible to you . What if we can make it to the point it doesnt have the punch in the gut feeling for a lot of folks. Thats what we have to Work Together as a congress. Its that simple. Liz as a Business Network we look at businesses, the stock market which is publicly traded companies, trading of course, and you can see that the u. S. Has the third highest tax rate in the world. I want to bring in, if you can stand by, congressman, i want to bring in our trader right now. The moves out of d. C. , already impact the markets. We do have stocks moving significantly higher. S p in record territory. The russell 2000 there. I want to get to Sergeant Stephen guilgoyle. Whats it like at the New York Stock Exchange . You might imagine, its built up over the day. There was no euphoric rush, theyre coming into stocks and small caps, thats where youre going to see the biggest benefit from tax plan. They are reaching into tech names now because of possible repatriation, there are a couple of sectors you see leadership in. And movements in the banks, thats janet yellen related. Liz what do you see might get hurt by the plan . Is there any rush out of certain sectors . Without a doubt. The rush out of bonds, out of the treasury market and rush out of sectors that are seen as bond proxies. Utilities, telecom, the staples. The areas where dividends matter, thats where you see people move out of the stocks because theres no longer the premium associated with them. Liz trying to see what we have for the 10year about 2. 3 , up 7 basis points. There is money coming out, absolutely, from bonds. Congressman kelly, tell me again, really specifically, though, would you give on Something Like the elimination of the estate tax . That i dont get, two tenths of a percent of americans who die are affected by this. And im somebody who hates when people say thats just a rounding error, but that doesnt seem to me a real revenue maker does. This have to be revenue neutral to keep up with the conservatives in congress . Im having trouble hearing you because we have so much activity around us. Are you asking about the death tax . Liz yes, it only affects two tenths of a percent of americans who die every year, so my question is, where else would you get more revenue . I think were looking across the board at what revenue we can pick up and where we could offset, and i think thats the purpose of what were going through on the exercise that were going through and go through it as a congress, not just as a republican or democrat party, why dont we go through it as a congress to find out how it affects each one of us in a way to say you know what . Not quite to where we can be there, is 435 of us from very distinct districts. So what may be a really big issue with me, a death tax because i represent a lot of people in agriculture who have Small Business and like to be able after all their life paying taxes to pass that on to the next generation without getting taxed on it. And other places you talk about deductions for state and local taxes and say this is going to have a heavy hit on them. How do we offset . Coming together on the offsets . On the pay fors, what makes sense is what we go for. Liz after the break, well have representative brian higgins, a democrat from new york. Well get his side of this and see if he does what you said. I love the analogy, you are a car dealer who never got the exact price they wanted, nor did the buyer, and thats the great part of negotiation, when nobody is happy, its a decent deal. Sarge, how do you expect the markets will respond . There could be buy on the rumors, sell on the new, everybody thinks this is a great inflator for the markets, do you see that today . Today, i dont know, if they believe, that buy the story, were going to see movement. Its to the upside. Were at 2510, the high of the day on the s p 500, i think 2524 is realistic shortterm, longterm, you could be looking 25, 2650 and beyond tax reform. Liz were at 2510, i want the viewers to mark what theyre seeing on the lower bands of the ticker, the s p, the nasdaq, the dow, volatility because sarge is going to come back right after the president speaks. Were going to keep him in the chair and hell give us the immediate Market Reaction from the floor of the New York Stock Exchange. Closing bell is ringing in 49 minutes. Can we take a live look inside the farm bureau where the president is expected to make his speech . There it. Is a big crowd right there, waiting to hear just how tax reform will come down. Thats in indianapolis, any moment, imminent. We want to squeeze in a commercial break. Please dont move. When we come back, we have congressman higgins, a democrat. And the ceo of Carnival Cruise lines, hes going to tell us what he expects his companys bottom line and other big businesses might see in the wake of takes code that might be in ship shape, Arnold Donald in a countdown exclusive. Liz imminent, everybody, as we await president trump. Hes about to deliver that speech on tax reform, we have been waiting for this. We just heard from Republican Pennsylvania congressman mike kelly, and now fair and balanced, bring in new york democrat, congressman brian higgins. Both he and congressman kelly serve on the house ways and means committee. I know its a crazy day tr everybody. Start with this, from the beginning the democrats said the red line they would not cross was a tax cut for the wealthy. In this plan, top income earners may have to pay more when you factor in taking away the ability to deduct state and local taxes. Is that the carrot that gets democrats to the table ready to work with the gop . Its very important, obviously, but keep in mind, it was mnuchin rule that was expressed by the treasury secretary many months ago that the net benefit of tax reform would not accrue to the very, very wealthy. And i think the other disappointing thing here is this president is obsessed with achieving 3 economic growth. He will never do that with this tax proposal. Liz why not . And i understand that the belief, sort of, the hope that tax cuts always create more growth is not necessarily factual depending on the circumstance. It didnt work for george w. Bush. People saved their savings, but what were doing isnt working right now, congressman, dont we need to try something. You. We do, we need to out of top 200 corporations in america, half of the corporations pay between 0 and 10 in Corporate Taxes. Half of those dont pay anything. In fact, we as american taxpayers pay them. So while there is a cut in the Corporate Tax rate which there should be from 35 to 20. Liz so youre okay with that . Well, fine, but the effective tax rate we should keep our eye on. Heres what i would support. I would support a minimum effective Corporate Tax rate of 20 . Liz i see. In other words, everybody pays 20 . Liz because we should let people know that right now, the effective tax rate is anywhere, depending on which site youre looking at, 19 to 29 , so some of them dont pay 20 at the moment. Some are well below that, too. But i need to get, because youre a new yorker, your opinion on the possible elimination of state and local taxes, from the federal, from the federal tax rate. A lot of people depend on that in new york, california, florida, to offset what could be a very high tax bill. Will you somehow find a compromise on that issue . Not a compromise, we will fight it on the merits. People get taxed twice about the elimination of state and local taxes. So we, and i think along with many of my colleagues in the house ways and means committee, including republicans from new york will be very concerned about that. Liz peter king, already, said this is a deal breaker, he doesnt like it. Thats right, i think this is perhaps a negotiating tactic, a strategy and thats fine, but keep in mind, in the end, its not the president that will set a tax rate. Its congress, and congress will now, this is the beginning of the process, not the end of it. And there will be a lot of negotiation, a lot of hearing to flush out exactly what the Economic Impact will be, not only to the nation, but also to the individual taxpayers. Liz thank you for joining us, and i need a yes or no answer because i know you have to go, and we got to wait on the president. But, yes or no, will you at least consider working with republicans on this . Of course, we will, we were at the white house yesterday with the president and with other members both democrat and republican, of the house ways and means committee. We take our work very seriously and this will be a good rigorous debate as it should be. Liz will you come back . Of course. Liz after we hopefully see movement. Congressman brian higgins. Thanks for having me. Liz any time. Democrat from new york. I want to bring in from the business side of this carnival ceo Arnold Donald. What you know of this, good . Acceptable . Not quite there yet . Good afternoon, liz, i dont know a lot about it. What i would tell you from a cruise industry standpoint is the three largest brands account for 70 , three Largest Companies account for 70 of everything, and we only have 7 of our sailings in u. S. Ports, well pay over 650 million. Liz what is that effective tax rate . In port taxes alone. Another 156 million in things like harbor taxes and fees and pilots and other things. We pay a lot outside of income tax and in addition pay tens of millions in income tax, federal, state, local and so on and our employees pay. Liz of course, the United States is among the top three highest Corporate Tax rates on the planet. Yes. Liz thats been blamed for a lot of companies leaving the u. S. To find lower tax rates. You are domiciled in panama. That goes back to before you were ceo. Before anything. Liz panama, i checked, their rate is 20 Corporate Tax rate. Thats what i saw. Okay. Liz but if we go 20 , would you and other companies be lured back to the United States . I wouldnt say we never left the United States, we were never domiciled as a corporation, we are dual listed on the New York Stock Exchange, the global stock exchange, we are a global company. We were never domiciled. We didnt leave the u. S. Or anything. Liz you have a base in doral, florida. Yes, i would say anything that contributes to the growth of the economy is a good thing, and i think a simpler Corporate Tax broadly is probably a good thing for america. I havent studied it, look at how many people are paying more than 20 , how many are less . What happens to the treasury, the coffers, what have you . Anything that stimulates the economy, we pay lots of taxes outside of traditional income tax. Liz were going to go commercial break in a second. A tax cut on the middle class to me says theyll possibly take some of that money theyre saving and go on cruises. Where do you expect to see it on your bottom line almost immediately . I think anything that stimulates demand. If people have more disposable income, of course, theyll supply more things and people are looking for experiences, and cruise is a great vacation experience and great vacation value. We look forward to welcoming more and more people to cruise. Liz and the lowest rate would be 12 , 25 and 35 , see if money comes back in the pockets and goes back to Companies Like yours. Great to see. You good to see you. Liz Arnold Donald. Weve got camera, folks, trained on the podium in indianapolis where moments away, imminent, thats a Big Broadcast word, were imminent. President trump will make and unveil the tax reform speech. Were on it. Were watching the markets which are brushing up and hitting alltime highs. Stay tuned. Were coming right back. Be in control . This guy. 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