Points. Were off the lows of the session. Well talk about whether or not this is baked in. Whether or not were powering higher to 25,000, amid the news the gop is finally get something done. Welcome, everyone, to the intelligence report. Im trish regan. Well get reaction from two republican lawmakers on the tax vote. Plus an update on the deadly Train Derailment in washington state. First to adam shapiro on capitol hill with the latest on the tax reform as they begin the vote. Reporter the vote underway. We expect when the house passes it. They move to the senate. Motion to proceed and to flight well have a vote in the senate. Mitch mcconnell said as much. Recap what some of what paul ryan said as he was closing the arguement why people should vote for this bill. In the short term every american essentially getting a tax cut. That is in the short term. This will put money back in peoples pockets. One phrase he is saying quite a bit, trish, the conditional of your birth should not determine the outcome of your life. That is how we are different in the United States than people in other countries but here he is in his own words about why this bill he believes is so important. Today, today we are giving the people of this country their money back. [applause] this is their money after all reporter but democrats are quick to point out, while that might be true in the short term, in roughly 10 years the money gets taken back out because the individual tax cuts expire roughly in 10 years. The Corporate Tax cuts do not. So here is joe crowley, democrat from new york saying what he thinks about this legislation. You know who this bill is going to help . Corporate special interests, the wealthiest americans, and yes, the trump family. My colleagues, if it looks like a scam, quacks like a scam, it is a scam. Can you vote for this bill with a clear conscience . Hell no, you cant . Reporter trish as i wrap up, it is going to pass in the house. It moves over to the senate. The vote tonight in the senate, sometimes after 8 00, 9 00, and then it is off to the president for signature. Here on capitol hill, right back into the fray. Tomorrow we are expecting the house to be voting on a continuing resolution to keep the government running out of money. Good times. Back to you. Trish good times indeed. Adam shapiro, thank you very much. I want to point out looking at live picture lawmakers are voting on a procedural movement here. They will be voting shortly on the actual tax bill. Joining me ahead of that, republican congresswoman from tennessee, member of the house ways and Means Committee diane black. Good to have you here, congresswoman . Great to be here. Thank you for having me. Trish you are very excited . Im very excited. Ive been here for seven years. Ive been on the ways and Means Committee, when i came, chairman camp began talking about the tax reform. We took the code apart and put it back together a number of times. Im excited to be where we are today and im excited the American People will get a gift for christmas. Trish congresswoman, is there anything you like in this . There are more things that could have been a little more here or little more there. This is maam math exercise that you do when you look at individuals and Small Businesses and corporations and international ones. The reason we put all this together they actually do work together. When you dial in one area you have to dial in the other. That is why they all came together. So it has been a really large project for us but one i feel comfortable, no, im excited about what it is the product were putting out for the American People today. Trish the criticism of this, you heard this said by members of both the left and the right, is that you are giving a Corporate Tax cut and youre giving corporation as lot of benefits here which i would argue you need to do in order to stay competitive in todays world, however, you are doing it, congresswoman at the expense of high earners, at the expense of individuals . How do you answer that Credit System . I answer that the proof will be in the pudding because what we tried to do to make sure it was the middle income earner that got greatest relief. That was really our goal. I feel like we reached that goal, trish. Trish you are giving them extra 40 bucks a week effectively. Thats something. Thats good. They should keep more of their money but the reality, congresswoman, you know this, is that a lot of people in the middle, they arent paying the bulk of the taxes. Youre right. Trish the top 10 of earners paying 70. 9 of all the revenue collected by the government, yet youre not really offering those folks anything. How come . Well, we are. We did bring the top rate down by 2 1 2 points. So we did on that end. But here is the thing. You have to look at this package all together. You cant just pull out one piece and say, oh, you did this or you did that. When you look at the whole thing together because those at the very lowest income, some of those will be paying nothing. As a matter of fact we wanted to make sure we took care of families. So we doubled the child tax credit. In addition to that it is refundable for those at the very lowest income. Trish isnt that effectively kind of a welfare . I know that was a big, big push of marco rubios but he is asking for these folks to get a credit even if theyre not even paying any taxes to begin with. So to me it is no longer a credit, it is a form of welfare at that point . Well it does help those at very lowest income. Look, i know how difficult it is to be a single mother trying to raise babies on your own. I have happen to have been left in that situation myself at one point in time, when we help people to raise them up out of that situation and make sure they continue to work. That is really what we want to do. We want to make sure theyre working. Work is dig any. Work gives us purpose. If i hadnt been one of those mothers helped at that point in time i may not be where i am today. I did not have those kind of credits i will say. I had a lot of help otherwise to be able to get where i am today as successful person. So i do i have an an affinity for people struggling at the lower income but then at the middle income we also want to give them some relief. We want to make it simpler when you go to do your tax code, it is a very difficult thing to do. You have to take it in the totality. You just cant take i hear you. If i take it in its totality here, there are certainly a lot of good things. I will not argue with you on those but i cant help but see the conflict here, for example, carried interest. Yeah. Trish carried interest, you have a lot of fat cats, private Equity Investors, a lot of them right here in new york city and they are effectively paying themselves, i dont know how this isnt criminal okay . Their money, their income. They are treating that as investment. Is it is it was never their money to begin with it is their clients money. They should treat that at income. They are paying half the rate as a new york city cop. Why isnt that changed, congresswoman. You are talking about the people flimming money very quickly. Trish no im not, private Equity Investors. Take three, five, sometimes 10 years. No, that is true. Trish they take the money and invest it in a new startup company. They hang on to that investment sometimes i say as long as a decade. Then they take that money out. Theyre basically paying themselves via their clients success and theyre treating that as investments when in fact it is income because it was never their money they invested initially. I know you fixed it on the hedge fund side. Why didnt you fix it on the private equity side . I dont disagree with you there. If i had my way we would have gone further. We did fix it on hedge funds where people flip money quickly. We went from having to hold equity for a year up to three years. This is something we can go back and visit. Should. There is 180 million. I dont care if it is so much one dollar. I think principle is wrong. I think we should to back to visit that. There are other places in the code i didnt believe we did enough, we should go back to look at. This is one of them. We did what we said on the hedge fund. We didnt to far enough. Trish hedge funds never, look, the hedge fund have not suffered from this to the same extent as basically the private equity sector. I dont say suffer, i mean benefit from. It is always from private equity. This is the criticism of mitt romney, right . It was perfectly legal what he did, but sure he made a heck of a lot of money creating all these companies and paid a whole lot less in taxes than a new york city cop. That was okay because it is legal. This is continuing to happen. Steve schwarzman making 425 million in a given year, and he doesnt have to pay as much as many, many other hardworking people in new york city. You guys didnt do a darn thing to fix it. So congresswoman, i would just ask, that you do try. You do try because we want this to be equitable for all. Well, look i dont disagree with you this is one of the places i do think we need to go back and fix it but i want to be very careful that we also dont put people who work very hard, especially the Small Businesses in the situation where we sy because you create wealth, that in some way we should punish people that create wealth. Trish but you have. Equity we need to be equitable, whether in passtheres or in corporations or whether in equity arena, that we do need to create equity there between all of those who are wealth creators. We want wealth created, right, trish . Dont we want wealth created . Trish im a redblooded american capitalist. Im all for Wealth Creation and lower taxes. I love what youre doing on the corporate side. Congratulations, that is a big deal. I want to see it on the individual side as well, the way this works out, i know you want to blame new york and new jersey and massachusetts, california, i know they need to get their acts together. They need to be better how much they spend and they should have lower taxes but the reality is you have a lot of people earning money in these states are not going to benefit one single bit. They will be hurt by this tax plan. I worry about that because new york and california combined equate for onequarter of the nations total gdp, congresswoman . When they can write off their high property taxes and high income taxes, and i come from a state where we have low property taxes and we have no income tax and we have, we have low taxes on property, and you know, were not writing writing that off ang the rest of the country to fund what were doing in our state. I think that has to be a fair conversation to have. I agree. What is the equity there . Trish i agree with you. I agree with you. You know, i want to remind you as i remind a lot of folks that come on this show, i want it all. I want it all. I wanted more on the individual side but i am hopeful that youre serious about going back and trying to do more both to fix this private equity loophole and making sure youre doing as much as you can for individuals. Congratulations. Thank you so much. Congresswoman, black. Senate is expected to vote tonight on 1 1 2 trillion dollars worth of tax relief. Fox business is going to have special live coverage tonight, starting with an expanded lou dobbs at 7 00 p. M. Joining me right now for more analysis, bullseye brief founder adam john and and strategist, dave nelson. Im sorry i cant let it go. It is up to 180 million over 10 years that these private Equity Investors are getting away with. Theyre walking away with this money. It is our money, your money, adams money, he have viewer out theres money. It is not right and they never bothered. Trish, youre hitting on a sore point. Im from the financial industry, so it is kind of an embarassment. You said the word there, it borders on criminal. It is egregious been around probably more than a decade at this point. This is not their capital. This is income. It will get taxed at Corporate Tax rate. They needed to do something about that but unfortunately there is an army of lobbyists that have descended on washington and they pay the bills. Congressman and senators no that. They want to get reelected. They want the money and capitulated. Trish i know but isnt this why the American Public sent donald trump to the white house, they were sick of this . They didnt want people dependent on donors. They wanted somebody to think for him or herself. He offered that up. If we have the tape we can role it again of him promising over and over again to fix this loophole. Have we got it . Hang tight on that. But adam, he didnt, but i dont put the blame with him entirely. The blame is with the lawmakers. Here we go. Here it is. Okay, good. There are reasons the Hedge Fund Managers are all donating to Hillary Clintons campaign and not to mine. Everybody getting rich off the rigged system, who want nothing to change, and nothing, they dont want anything to change. They want to keep it the way it is, are throwing their money are throwing their money at hillary clinton. We will eliminate the carried interest deduction, wellknown deduction and other special interest loopholes so good for wall Street Investors and people like me. Trish the only problem they didnt eliminate it. I dont entirely blame him. You have to many swamp creatures getting so much money, handouts to help their campaigns, that lobbiests are having too big of an influence and it concerns me. Think about it. You have 538 swamp creatures in washington. They have all egos. They want what they want, trying desperately to get it. The fact we were able to corral enough of them, sadly couldnt get any democrats, the fact we corral republicans behind tax reform, we didnt get everything, it is not perfect, youre right trish. It will boost gdp by 1 . We are creating jobs. Were giving middle income owners a break and giving corporations flexibility to deploy capital. All that is good, trish. Youre totally right. We didnt get this one thing and it stinks but were getting a lot of what we do want. Trish i want to go back for a second to explain this one thing. Okay. Trish david, you can help me explain this as well. I think this got you there the cracks that they know the American People dont really understand what carried interest is. It is kind of wonky. Nobody really has their head around it. I think we can simplify this pretty simply. David if i if i have you money to invest, my money, i paid taxes on the money, i give it to you, to invest. You say, you know, i will do the 2 and 20 model. I will take 2 of your money, trish regan, as my fee. That is my income. I will get charged, whatever, the rate will be 37 federally on that. But then there is the money, trish regan, that you make off of what you have given me. Suppose i make 1000 bucks based on that investment. How is it, david, that youre able to take 20 of whatever i have made and treat that as an investment yourself . It is an investment for me. It is an investment. Trish but not an investment for you. Not an investment for you although they paint it that way. It looks like an investment for them therefore, it gets taxed at Capital Gains rates. That 200, for me that gets taxed at about 23 , instead of high 37 or 39 . It has been around for a pretty long time. Theyre going to keep it at this point but adam hit on the more important point, even though we didnt get this, there is a lot in this bill neither of us like, we did get one thing. We now have a tax code that doesnt encourage our corporations in this country to move out of the country offshore to move manufacturing and sometimes the whole shebang. Trish we shouldnt downplay that. We want them all that they can be. Sounds like a song or something you all know. We want them all they can be. I want the economy to grow and i want things to be fair and there could be more that should be done and hopefully will as we heard the congresswoman say, as we deal with some of these issues but lets not lose sight of the fact that if this gets passed and we think it will, adam, the United States will be far more competitive in 2018 than it has been in years . Thank goodness, and is really the headline here. What were doing increasing americas ability to compete. That is why we hired mr. Trump to go to washington, yeah, clean it out, but make us more competitive. I think with were trying to do here with the tax code. It is lowering tax rates. I know we can do more for the little guy. Okay, fair enough. But guess what, if you drop american Corporate Tax rates from 35 to 21 , if you give american corporations flexibility on how they deploy capital, if you create incent so they spend money, capex, depreciate, sounds wonky, for five years that unleashes buying power. That is stuff made by americans which means jobs. This is a good thing. Im very positive on this thing, trish. I know it is not perfect. Trish 25,000k on the dow . 27k, trish. Im serious. 27k. 25 is around the corner. This is a big deal. Trish were expecting to mare from the white house any minute. They want to take a victory lap right here as tax reform gets closer and closer to a vote. Well bring it to you live. All this as were seeing a little bit of a pullback down 30 points after rise market gains as buy on the rumor, sell on the news . Are is this trepidation it will not get done . Were commenting on all of it right after this. At fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. Anwifiso if you cant trade live without it. T it. Why arent you using this guy . It makes your wifi awesomely fast. No. Still nope. 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