Officials lifted expectations yesterday in proposed tax cut. The central bank raising rates for the third time this year and in the final News Conference is Federal Reserve chair gina gallant says the u. S. Economy is performing well. She also targeted bitcoin concrete to occur in the highly speculative asset, but not enough to cause a meltdown. More coming up this morning. Futures look like its indicating a market continued momentums this morning. The dow industrial up 30 points at nasdaq, s p 500 higher. Investors waiting on the European Central bank decision. Mario draghi will bring you those headlines. Markets are down across the board a quarter of a percent lower in half a percent lower in germany and the dax index. Lower across the board, as you can see the kospi indexed on one half of 1 . The latest have a smiley accuse by the network of his misconduct allegations. Details at smiley intends to fight back. Way more to fight on. Still refusing to concede following doug jones shocking win for the Alabama Senate seat. President trump close to congratulate doug jones. Delivering goods for christmas from amazon to 7711. Bring in the online roulette straight to your doorstep. You need to talk about it, dagen mcdowell. Managing partner mike murphy and cia of delegate llc, mike baker. Good to see you. Thank you very much. Lots to do. Lots of talk about for sure. Lauren the tax thing im trying to find the positive in there. I really think theres something positive in there. And cnet. Its out there. Its going to be helpful for the u. S. Economy. Hopefully its a cut for u. S. Residents. Maria august people except those losing deductions. Hopefully they can do something in there. Nothing to do with the tax thing that i love being back in new york. I walked out of the hotel this morning. Snow on the ground which is unusual. I hail a cab, the cab driver, doesnt matter where you stand because now is the new york. So i sit down and then ill make some small talk. He looks back at me and says really, hadnt noticed. Thank you. Dagen now you are smalltown idaho. Trying to be friendly to everybody. Doesnt work like that. Maria not in new york. Get out of my way. The only person on the sidewalk at 3 00 in the morning. Move along, fellow. Maria fired up this morning. A lot to talk about. President trump in his closing arguments for overhauling the nations tax cut in his each of the white house yesterday after they struck an agreement in principle on the tax package that would lower the Corporate Tax rate to 21 . The individual rate for the current 39. 6 . Pasta businesses with a 20 reduction in homeowners deduct up to 750,000 in mortgage debt. Senate lawmakers have the votes to pass this next week at the president says americans will feel the effects almost immediately. If Congress Sends me a bill before christmas, the irs from and this is just out, breaking news, has just confirmed that americans will see lower taxes and bigger paychecks beginning in february. Just two short months from now. Maria joining us now from assistant secretary of affairs, tony seyed. Welcome. Good morning maria impaneled. Trained as the president s timeline correct . Just two months from now . Absolutely. There should be no reason if we dont obviously get this passed for christmas that we cant get the irs prepared in there working in monitoring closely with us in watching what we are doing. This is exactly why we are doing it and why the president all along throughout the year has pushed to make sure we got it done this year and the benefit would have been rather quickly. There still are some people seeing their taxes go up because of the elimination of deductions. Do you worry those people who pay the most tax was singing a lot, ive got a pole in my spending in 2018 because of this and consumers that it represents two thirds of the economy. Obviously our intention all along has been to cut rates across the board. It could possibly be an achievement of that in the final package. To do that you have to broaden the base. You have to get rid of a lot of deductions. These deductions tend to benefit very few people we talk about the state and local Tax Deduction we understand that this sensitive matter. Im a new yorker. Im sensitive to the. A 50 state solution for your taxes than you cant focus on sandboxes. Youve got to look at the beach. We are much better served lowering rates across the board for all americans in the vast majority will realize significant tax cuts come the middle income families like those who join the president the white house. Dagen tony, and cowl. Broadening the base means making people pay taxes to people who dont currently take them. Half the country pays no federal income tax. We are hearing from mike lee who says in a town hall, tallest on townhall and the Child Tax Credit wanted this very generous increase in the child care tax credit. A significant portion we dont know how much will be refundable up to the total amount of taxes paid including payroll taxes. Mike lee is still talking about making that child credit refundable for even payroll taxes that go to that point because thats something individual benefit to the person. That is a really huge head scratcher for me. Will come i got to tell you the extension of the Child Tax Credit is a very essential part of this tax bill. We want to ensure the hardworking american families, particularly those with both parents working do receive some relief for that. Again, lets not focus on the small aspects. Focus on the broad view. We have created a progrowth tax plan that will grow our economy at a level of 3 that we all know and i hope all agree is the best thing we can do for all americans. What we do by accomplishing that is expand Economic Opportunity so more people have a chance to succeed and participate in the economy and that is exactly why would you do something this significant and comprehensive you have to look at the broad view, not the individual aspects of the plan. Trade to this family tax credit is also creating winners and losers. If you dont have children, you dont get the benefit and also what about the families very welloff . They are also getting the tax credit . There is obviously tax two incomes received. They will ultimately be negotiated the bill. Theres also credits for those who take care of adult dependents. There are things in this build that ensure hardworking americans, particularly those in middle income bracket receive benefits from tax relief that are beyond lowering their rates and we believe thats an essential part to ensure we deliver essential middleclass tax cuts. We are going to have passed their businesses, which are small, mediumsized businesses, owner operators at historic rates. The corporate rate from 35 to potentially 20, 21 is now the number being discussed at congress will release what ultimately is in there. Our belief is that is a dramatic reduction that will help them increase wage growth and increase the investment of these dollars currently parked overseas in the trillions into the United States. Trained to wait another problem with the business in the Corporate Taxes. The individual side is so difficult for these guys to allow the high earners to get tax relief. Its incredible. It is a falsehood to collect tax reform if you keep the alternative minimum tax for for individuals is the parallel tax system and that is not reform if that stays in place. Raised on the people i talked to last night, the individual amt still in there. First in the first out for Retail Investors only still in there. And the Treasury Department will have to take a year to write the rules to decide who doesnt qualify for the new pastor rate. Maria and then there is carried interest. Tony at his mike baker. Im sure you want to talk about the state and local tax issue, too. It is not just new york and connecticut, new jersey. Its been painted that way as well. Is it off the table, not going to be discussed, not making its way back and were still up for grabs . As youve been saying, the house had a solution for software and alleged to bring up 10,000 on your property taxes. A current solution allows you to take a 10,000 applied instead to your income taxes. If you live in a high tax state, you are paying high taxes because your State Government are making you pay high taxes. Not that the federal government doesnt give you a deduction. The bottom line, it is the largest, most aggressive deduction that tends to benefit very few high income, high earning taxpayers and in order the entire system and make sure we lower rate, you have to get rid of these types of aggressive deductions. Train to the jury is out that the high earners that the high earners, those busy taxes go up for spending an hour impact Economic Growth that i agree with you on the Corporate Tax. You know that. Jpmorgan and Ceo Jamie Dimon weighed in yesterday. While the corporate side would not be immediate, an overhaul is long overdue. Heres what he said. Is simply needs to be done. It should have been done 50 years ago. The counterfactual wouldve been how much better maybe youve been had we had a competitive system verse will be had. Maria again, the corporate rate is supposed to mean the to mean the big two of this plane. You know what the real goal of this plan is. It is growth. When you look at where can we make sure we leave the last eight years of this legacy of sub optimal 2 growth behind. That is making sure we make our businesses more competitive so they can reinvest in the country, give workers a pay raise comics and operations domestically. You cannot call this anything but tax reform. We are changing the entire system by which we operate on the business side. A worldwide to a territorial come in getting rid of deductions on both sides. Special interest loopholes are absolutely focused on cutting rates across the board. This is a very comprehensive tax plan. I will tell you because of 31 years in here in washington we needed to get this done and get this done fast because the American Economy has not been growing at a top rated not been our focus. Appreciate everyones concerns about their own particular sites in the sandbox. Tree into this is not bad. The bottom line is there is a big portion of people that will see taxes go up on the highend and i am just saying consumers are named as two thirds of the economy and i dont know why youve got this reluctance to allow the highest earners to get any tax relief. Going 37 . Look, the bottom line is theres likely when congress announces its finally agreed to, theres going to be a tax rate reduction across the board. Certain people in certain states in the high income high tax states will have to figure out what impact that is. Maria we are figuring it out. At the end of the day, you have the vast majority of americans. Even though the a lot of the analysis thats critical of our plan shows do well over 90 receiving a tax cut. We need to keep focused on that. I would just like to say i want to be safe here, but i agree with what youre saying. The Corporate Tax cut is going to spur growth and help all people across the country. Trade your final line. Tony sayegh, merry christmas. See you soon. The pbs start fighting back after your show suspended him in the network amid misconduct allegations. Maria welcome back. The hits keep on coming. First charlie rose, now tavis smiley. This time, pbs has suspended tavis smiley. Uncovered multiple allegations made against the hosts. Tavis smiley flatly denies the accusation same pbs overreacted and connected via some sloppy investigation. Let me also assure you that i have never, inappropriately exposed myself or coerced and a colleague in the work place ever in my 30 year career. s suspension follows the charlie rose by the women. Republican worry more with calls to concede after doug jones defeated him in the alabama special election on tuesday. This race we have not received a fine account to include ballots. This has been a close race and we are awaiting certification by the secretary of state. The process to start on the 26th. He thanked his supporters and the five minute long video. Meanwhile, President Trump called to congratulate jones and invite him to the white house. Over in russia, russian president Vladimir Putin has been giving his annual press conference today. A rare chance for the media to ask direct questions. He refused to offer an assessment of President Trump, but he did say accusations of russian collusion in the u. S. Election are damaging the u. S. Political system. He also said the occasion aside the economic recovery and it promises to continue to modernize their economy. We have all but guaranteed because we have invested money in the project. Our direct investment, mounted to 23 billion which is twice as much as last year and this is the best indicator of the last four years. Our rate has been brought to record minimum. All of this has been recovery of our economy. Maria has divided the u. S. Provoked north korea into violating its agreements, maria. Vile, thank you. Nikki haley to layout irrefutable evidence of irans. Describing proof of irans efforts to destabilize the middle east and beyond. Mission accomplished just that was about three crew members of the International Space station return to earth. The guy still up there at getting a very special screening amid a star wars movie in space. That in a minute. Maria welcome back to the fed did what we expected for the first time this year. Raising venture straight for object and the taxcut making its way through congress right now would result in Economic Growth without inflation. The final press conference as fed chairman before her term ends in february. Global economics editor for the wall street journal jon hilsenrath. It was a pleasure. Good to see you. Heartache yesterday in the feds outlook. The big news was the outlook you talk about. Theyre expecting to buy 1 growth in now they seem to. 5 . They see an economy picking up speed that we talk about a lot of the program and a knowledge of the forecast but they are not changing the Interest Rates. Free Interest Rate increases next year. There is some worry if the economy picks up in the u. S. Goes through that the fed might push against that a little bit i raising Interest Rates more aggressively. Not the forecast going into the year. Still a possibility as next year unfolds. John, mike murphy. Listening to janet yellen, we are pretty much on course for what the fed has not doubt for us. What upset the market isnt the fed raising rates to cover three, four times by 25 basis points in 2018. Something that would shock the system from the something that would cause 50 basis points or something that would cause us not to raise rates. Do you see anything out there that could surprise the market and in turn cause a selloff . The issue i always come back to his china, the worlds secondlargest economy has been slowing down. They just had their conversation month or so ago in trying to stimulate the economy going into that. Theyve got a lot of problems in china and if there is a surprising 28 team that would be looking at it coming from that part of the world. Uncertainty about what it would mean for the u. S. To chinas is down more than we expect could help the u. S. In some ways. As money flows here from there thought that i would be concerned about. Might baker appeared not to pitcher on the spot but im going to. Best guess next year, how many rate increases . They are seen three. If there is a risk, the risk is that they do more than that because it is growing pretty fast right now. The markets are looking so robust. New records every day. If i met aside, what i am worried about right now is that we are getting into this pattern where markets are hitting new records every day. We have some new bubble building somewhere in the system. We talk about bitcoin all the time and with going on with that. They just have to worry about Financial Financial conditions getting a little too easy on them. Trade to addon product bitcoin with the chairman. The recent discussion going on among central bankers about the potential merit of adopting a central bank is self adopting a digital current day. I want to caution this is not sent and the Federal Reserve is seriously considering while we look at research on this topic. There are two my mind limited benefit from introducing it, a limited need for it. Maria what i thought was interesting while she says about, speculative, she also said its not the kind of thing that could take the economy down like in 2006. Now, tapping in a small corner of the financial done. Not a lot of money in play and what the fed talks about his days allotted dead behind it. This brings me back to china actually. We have a story the other day talking about how the money going into bitcoin and crypto currency is out of asia. They could hurt individuals in nature rather than the u. S. That you might agree with this. The canary in the coal mine so to speak clearly exemplifies euphoria in the overvaluation. Thats exactly right. Five, six years ago there was just such a wave them over your seat now is euphoria and group of currency and stock prices going up. Great news that everyone is enjoying it, but after the crises weve been through the last 20 years with the realist a bubble coming to have to beyond the lookout and this is the environment happened then. The real estate bubble happened when it was gradually raising Interest Rates and inflation was low. Right now its gradually raising Interest Rates and inflation is low. They have to take the lookout for that. Thank you so much. Wall street journal. Mountain of debt, startling number of default on student loans. 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