Spouses, nonchild dependents if your kid is in college. That will phase out over time. Some things will phase out. Next couple hours well get into. Netnet, more tax cuts than tax reform in the classic sense of the word here, but it does move the rates here where the upper income still will be paying 39. 6 , but a chunk of their savings will come between the gap where we have the 39. 6 rate, 400,000 in the new plan. 250,000. They will enjoy a bit of a tax sort of holiday there in that differential. Unfortunately they lose that by losing a lot of local state and Tax Deductions they bottom in hightaxed states. You could keep up to 10,000dollar property Tax Deduction. We get lost in the weeds here. Sufficient fist it to say, for well to do, stuart point out, president telegraphed, republicans telegraphed it, what we look next cowell hours what republicans are saying about this. What people are upset about this marco rubio, were hearing the senator from florida, is concerned that the Child Tax Credit he is pushing will be 1600 per child, not the 2,000 or more he was originally seeking. Were told he is not pleased with that. A number of other republicans leading that effort to expand the credit not happy either. Whether that translates down the road into no votes anyones guess. Fallout on corner of wall and broad is, you might expect kind of confused. Theyre assesses this. Compared to what we have now, it is better. Theyre taking the good here, looking at a half full glass. Adam shapiro at capitol hill. Adam what are we looking at . Reporter brackets and income cutoffs for the bracket. First one hundred thousand dollars income, 2,490,000, that is 12 . 90,000 to 26thousand, married couples neil, 25 . Up to one Million Dollars at 35 . A Million Dollars and more if that is your income, god bless you if it is, 39. 6 . That is what the tax rate will be. For unmarried individuals its a little different. Zero to 24. You pay nothing. Up to 45,000, 12 . 25 tax rate kicks in up to 200,000. 35 , up to 500,000 a year. And then 39. 6 , if youre a single person, this will be 500,000 or more. Kevin brady says this is a about a middle class tax cut, letting you keep your hardearned dollars. Here is what he said. Thats your money. You earned it. You deserve to keep it. You should be able to use it for whatever you want. That is exactly what this bill will do and why the tax cut and jobs act has President Trumps full support. Reporter so again, this is the house version of the bill. Neil, you were talking about a little bit about the senate. Well get the senates version next week. Eventually they will have to reconcile these two pieces of legislation. The goal to get it all done before christmas. Neil. Neil thank you very much, adam shapiro. House gop conference chair, republican congresswoman Kathy Mcmorris rogers. Thanks for joining us. Great to be with you. Neil play this out for me. You guys stuck to your guns when it came to the deduction for state and local taxes. That is not going to be allowed, as some sort of a something for those really feeling bad about this, up to then thousand dollars they can write off for property tax and like. A lot of them, a lot of those in the state will owe taxes. What do you tell them . Well, were about everyone in this country seeing tax relief. So we continue to work through those details but were very excited about this day. There is a lot of momentum. As you think about no matter who you are in this country, whether a single mom, or Small Business owner, we want to by you tax relief. We want you to have bigger paychecks and more takehome pay. Neil in those big states i mentioned, congressman, that will unlikely happen, right . Well, when you look at the doubling of the standard deduction, when you look at some other provisions were still working through it but our goal is for everyone to have tax relief. I think it is important to remember these are the hightaxed states, at state and local level these are very hightaxed states. Were focusing on federal income taxes but we want everyone in this country to experience tax relief in this package. Neil all right. When you look at various rate levels and brackets, how much wiggle room will there be between the house and senate . I know the Senate Finance committee, congressman, is working in one area while the house ways and means has been working on its plan but are those rough brackets outlined as the likely will end up being . I believe so. There has been a lot of work put into getting us into this place. Work between the house, the senate and the administration. We agreed on the framework several weeks ago, that largely laid out those tax brackets and, our goal has been, when we launched it today, that we would be pulling in the same direction. You know, later on today i will be headed down to the white house with President Trump where we are doing another overview of the legislation and coming together. We have momentum. We want to keep momentum going. We believe this is going to have, it is going to be economic boom for america but it also is going to help every family. It is profamily and proEconomic Growth. Neil i do take it when you meet with the president later today, congressman, he is on board with some of the key provisos you have here . He was very much concerned taking away tax savings status with the 401 k contribution and like. I notice that was kept out of this. He didnt really telegraph too much how he felt about the provision to remove state and local Tax Deductions which would be a pain in the neck for those in hightaxed states. Is it your sense he is on board with most of these provisos here . Yes, it is my sense that the president is on board. He has been very engaged. He has been pushing us. He wants, he wanted this done, he wants it done, he echoed our sentiment in the house that it needs to be done by christmas. We want to get this tax relief in place for families and Small Businesses all across this country so we can get the results, we can get more jobs created in this country and Small Businesses are the economic engine. That is where the jobs are created. And we prioritize Small Businesses that have had the highest effective tax rate of anyone in america. They are the ones really shouldering the tax burden. We also want families, and doubling of the standard deduction from 12,000 to 24,000. Your first 24,000 is taxfree. We want everyone to be dreaming again and to have more money in their pocket, so they decide how best to spend those dollars. That is where we really have been working hard, with the president , with the senate, with our members in the house, to answer all the questions, get the feedback, but be able to largely be in agreement as we move forward so that we can get this on the president s desk by christmas. Neil your colleague, sean duffy, was on earlier with my friend stuart varney, making this retroactive. How likely is that . One thing you should know, if we get this in place, if we, if we get, if the president signs this by christmas, immediately, in january, he have one will start seeing a higher paycheck because, what is being currently pulled out of your check is going to be reduced. So, it would go into effect immediately on january 1st, 2018. Families and individuals will see that. All right. So not retroactive issue but notice it as soon as new year, the tax tables take effect . Right. Neil see that difference again. I want to take what it means for businesses and all. We can get into the weeds on passthrough and 25 for smaller businesses and like. There were walls set up to prevent a lot of very wealthy individuals, you know, from moving to that rate so that they could sort of find an advantage for themselves. You have taken that out but critics already said what youve done process, made the rate unrealistic. It will not be 25 . But likely significantly higher than that what do you say . Well, our goal is to make sure that Small Businesses are getting relief, and, our calculation is that this will be the largest relief for our Small Businesses since world war ii. They will pay the lowest rates since world war ii. They are our economic engine. The provisions as we are launching today, it includes a short form and a longterm. Small business was have an option. We want to hear from Small Business owners what they like. If it is, and we want to get that feedback. So this might be an area where we need to continue to work on some of the details. Neil as the house gop conference chair, and you have a lot of responsibility here so first of all i appreciate the time you took just to chat with us but is it your sense all the efforts you and your colleagues getting democrats on board, making this not looking too friendly to the upper income, which it is not, the rich will still pay, in fact many could pay more, will gainty any democratic votes . Do you think through all the effort you will get a democratic vote support here . Well i hope so. I hope they see that this is both profamily and proEconomic Growth. We want everyone to have an opportunity for a better life, to reach their full potential and part of that is lifting the tax burden that we currently have in this country. We see jobs, going overseas. Companies that are becoming Foreign Companies that were americanmade companies. So, this is our time. People have been waiting a long time. I would welcome the democrats to join us in this effort. This, it has been long overdue. It has huge potential. And we need them all to be a part of it. As chair of the republican conference, ive been traveling to different states. Weve been holding faces of tax reform forums. The feedback has been so positive. I was in north carolina, michigan. Im headed to virginia this friday. Then to pennsylvania. People are, are so encouraged that congress would be taking this action and i might mention, neil, weve also started a textmessaging, if you want to text tax reform, to 50589, you can join us directly and give us your feedback. Also get latest information. Neil all right. Cathy mcmorris rodgers, thank you very much, house gop conference chair. Great seeing you. Great to be with you here. Neil as were speaking so is white house Economic Advisor gary cohn, that the tax bill is something that the president can and will likely support. Were monitoring closely what he is saying at Economic Club forum. Go to Charlie Gasparino crunching some other numbers here. We keep forgetting, charlie, part of this, you get a mix of disappointment and glee, theyre constrained under this system of reconciliation not blowing deficit so you cant go too crazy. Argue you should cut spending so it is what it is. It is the give and take. What is the reaction on it . Theyre constrained by ideology. Paul ryan is not a supplysider like art laffer. He looks at static analysis as dynamic. Neil pay for it. Pay for it immediately. You cant count stuff coming in future. I will say this, when you talk to people, i talk to economists, traders, and investors. There is good, there is bad, there is ugly. What is good . Simplifying the tax code, going from seven rates to four. Corporate tax cuts are there. Not phasing them in. Thats big. So thats good. What is bad . They really cut back on Small Business tax cut, stuff we spoke about yesterday. When it really comes down to it, because of formula using blended rate of 30 , goes down from 39. 5 to 30. That is still a cut, not 25 theyre talking about before. That is not so great. Where it is ugly on the personal side. Ill tell you, on the personal side, this is not tax reform. Basically taking, think about it this way, if you make 261,000 a year, you live in long island, you will lose your property tax cuts and some other deductions, salt deduction and other stuff, youre likely at 261,000 going to get a tax increase on this. Forget about millionaires, people making a million. 261, marginally more gets you into the their bracket. Neil 35 . That is where it gets bad. Neil it used to be before 418,000, got you into 39. 6 . Got you into 39. 6 neil theyre arguing netnet coming out ahead of things would be if they stayed the same. Maybe but you dont know about deduction. This is one other thing, smoke and mirrors of gop is saying, they want to appease everybody. Tax reform when you do it, if you do it right you will give a big fat tax cut to rich people who theoretically will spend it on middle class people. But heres the problem that they have. They are giving tax breaks, if you look at this, people at bottom end, getting tax breaks, sound great, but they dont pay much of federal taxes. Neil this is theme coming through again and again. Income taxes. Neil this came through the passthrough thing, they were trying very hard to prevent rich individuals, guys like you from snookering them. Neil snookering them. They put all the roadblocks and, and, not saying necessarily agree or disagree, and on the wealthy, that limit their tax breaks to the extent that the 39. 6 sticks for them and with some of the other conditions they will end up paying more. But they bent over backwards. Yet irony will be, that, i wonder if well get single democratic vote as a result . Probably not. They say the corporate stuff is giveaway to the rich. Theyre into it for obstruction reasons. The real question, what does the wall street journal editorial page say tomorrow . Look what conserve at thises say . Neil right. I think they will say, on individual side they i am withed out, there is no doubt. If you want to give a middle class tax cut, dont screw around with the income tax. Go to the payroll tax. That is where middle class people get screwed, on payroll taxes. The income tax is smoke and mirrors. What they did, they came out, said, were giving huge tax cut to middle class people, workingclass people who really dont pay much income tax. They get screwed on payroll tax that is the smoke and mirrors. That is what i say is good, bad, ugly. Good on the corporate side. I dont care what anybody says, poke with a ceo yesterday, you cut my Corporate Tax rate from 39. 5, whatever he pays with couple deductions, from 30 down to 20, i get 15 to the bottom line. Neil that is the most dramatic thing. It is amazing. Neil it is not phased in. By the way, i will do some stock buybacks but hire a lot of Technology People and build stuff. That is where it is good. This personal stuff, we have to crunch numbers. Its a joke when it really comes down to it. Neil not as if you come from a hightaxed state. Im telling you, neil, if you make 50 grand a year and live in ohio, how much money are you really going to get on this . Neil were going through these various brackets and hypothetical situations throughout the show. We will show you that. Well keep you updated on that. Ive been doing a lot of number crunching here. Netnet, view on republicans better than what we have . They say yes. Are you netnet better off if they didnt touch anything . They say yes. What does kevin brady think about this . The guy putting this together long before donald trump was running before the president of the United States, he will be in big demand. He is making his first stop with us on your world on 4 00 p. M. Eastern time. The man who runs the house ways an moans committee, dealt with all the numbers and bruised egos and obnoxious journalists whose name end with a vowel. First on your world. Well have more after this. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. Copdso to breathe better,athe. I go with anoro. Go your own way copd tries to say, go this way. I say, ill go my own way with anoro. Go your own way oncedaily anoro contains two medicines called bronchodilators, that Work Together to significantly improve lung function all day and all night. Anoro is not for asthma. It contains a type of medicine that increases risk of death in people with asthma. The risk is unknown in copd. Anoro wont replace rescue inhalers for sudden symptoms and should not be used more than once a day. Tell your doctor if you have a heart condition, high blood pressure, glaucoma, prostate, bladder, or urinary problems. These may worsen with anoro. Call your doctor if you have worsened breathing, chest pain, mouth or tongue swelling, problems urinating, vision changes, or eye pain while taking anoro. Ask your doctor about anoro. Go your own way get your first prescription free at anoro. Com. Whentertaining us,es getting us back on track,hing . And finding us dates. Phones really have changed. So why hasnt the way we pay for them . Introducing xfinity mobile. You only pay for data and can easily switch between pay per gig and unlimited. No one else lets you do that. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit or go to xfinitymobile. Com. Neil any minute were expecting the president to make announcement not so much on the tax cuts although im sure they will come up but talking about a big jobs announcement. We dont know who it will involve, how many jobs potentially it could involve. When we know well take to you the white house to get a read of that. House Budget Committee chair diane black, from the beautiful state of tennessee. First off, on this idea that Cathy Mcmorris rodgers was raising that taxpayers will see this immediately next year, assuming it is passed before christmas in theirs tack tax tables, see it in their paychecks next year. That is a pretty good turn around, isnt it. That is pretty quick turnaround. Were doing everything we can on our side and encouraging the senate to do the same. Neil does that encourage changing tax deductibility on position on those who pay state and local taxes for hightaxed, new york, california, massachusetts, you heard the drill, they will get hit hard