Income groups. Im not looking to do that. But if i wanted to do it, i believe i could. Im not looking at a tax cut now. We dont need it. We have a Strong Economy. Certainly a payroll tax cut. David sound bite of President Trump telling reporters just yesterday that he was considering indexing Capital Gains taxes but today, touting a Strong Economy, the president says indexing could be seen as somewhat elitist, the word he used, also saying no need now for a payroll tax cut, but is it a mistake to take these tax cuts off the table . David, its always a mistake to take good tax cuts off the table. John kennedy didnt take it off. He had a Strong Economy in the early 60s, but put in a massive tax cut across the board individually. Go back to the 20s, coolidge did the same thing. President s have done it in the past. Inde keep this economy going, great for the market. David not elitist . It benefits everyone and also helps reduce the deficit because Capital Gains revenues always go up when theyre cut and on the payroll tax, that hits everyone from dollar one, doing what barack obama did, one of the few things he did right in 20112012, helping everyone with that. So i dont know what made him take it off the table. Whatever it was, tomorrow he could put it back on, i hope he does, because the economy needs it. David you do it now before it goes into a recession. Well, it is thursday tomorrow and trump has been known to change his mind a little bit, so you never know. Look, if i was the president right now, i would be doing the big contrast with the rest of the democrats that are running for president. They are raising every tax under the sun, that when you try to get wealthy they want to confiscate that wealth and when you get old and decrepit and pass away they want to take even more wealth and in between they want to do a v. A. T. Tax, carbon tax, every type of tax. What a great position to be in to say this is what i want to do, you keep more of your money while they keep going into your wallet and taking every dime you have. Big mistake on his part. You are flipping it to the democrats yet we have a president that seems to be flipflopping quite a bit on this situation, literally 24 hours later, completely changing course. Steve, to your point about the gants tax and it helping, if you look at the effective tax rate its already relatively low. Inflation is also relatively low. Would that add that much of a boost to the economy . Then when you think about the payroll tax, surprised you didnt bring that up already given how large the deficit is and how it will be blowing up even more, is this something we really need at the moment . We need a more prosperous country. In terms of the Capital Gains tax, with obama it was almost 24 . Now that you cant deduct state taxes its over 30 in a lot of states. Reduce this destructive tax on capital. Thats a great point. A lot of americans are in need of additional tax cuts. Tell you what, the economy is, too. If you think about trumps lets say pilgrimage for 2020 here, he needs an economy thats going to refire. The way you are going to refire this economy is by giving it some more help. If this economy continues to slow down as we are starting to see it is, as we are seeing the effects of the tariff war kick in here, trumps in trouble if he doesnt get some new taxes into the system here to help boost the economy, to get reelected in about a year from now. You really think its going to do that much, though, just cutting the payroll tax . I saw some prediction in usa today that said it would only add. 3 to gdp growth. You really think its going to do that much . I tell you what,. 3 to gdp growth, thats bottoming out at 1. 5 , maybe 1 by some analyst estimates is probably kind of a big deal as the teeshirt would say. Any little bit would help. Its also a foray as gary alluded to into saying hey, mr. And mrs. America, im actually going to give you more back of your money versus take your money as the folks you are going to vote in instead of me in 2020 will do. 03 adds tens of billions of dollars to the economy and also affects people who dont pay income tax but do pay payroll tax on dollar one. It gives them more spending money. Good for the economy and good politically. Hello. David hold on. When Capital Gains was cut back during bill clintons administration, everybody forgets he was a tax cutter as well, we did see that boost in revenue as a result. We saw a lot more economic activity. But would indexing Capital Gains do the same . It would. Not as powerful as a straight cut but its there because a lot of people are Holding Assets because they dont want to pay that 25 , 30 tax. When you index it, that effectively lowers what you pay on phony gains that came from inflation, not a real increase in value. So you will get more activity, you will get more new investment, getting money from old investments into new investments. Thats how you get a bigger and better economy. May i remind everybody this year, federal, state and local, we are going to send these wonderful people in government 5. 5 trillion, 6 trillion, and they keep telling us record numbers. There are still homeless on the street. Talk about inefficiency and ineffectiveness. The most efficient place for the earned dollars is in the people that earn the dollars, not that people that confiscate the dollars and disrespect our dollars. I wish the president would change his mind and maybe he will, because hes pretty darned good at that, but just remember, its going to be tough to pass anything heading into the election because democrats are not going to go for much at this point in time. He can do Capital Gains by executive order. David more to pump up the fact the economy is doing well primarily because of the tax cuts. That way he can turn tax cuts into a campaign issue. Hes got to do more to make that connection, because hes inclined to say the economys doing better, we hope it continues to do so, but if he says why, emphasizes why, hes got to do it all the time even though hes heard it 10,000 times a day, the Mainstream Media wont cover it. Hes got to do it himself. Then the china trade thing flared up in a big way. We thought we almost had a deal with china, what, six times, even to backed off. Okay, if we are counting at home, maybe 12 great Corporate Tax cut did as we started to see from some of the corporate earnings reports weve received in the last several weeks. Now the china tariff war is really starting to creep in to some scary forecasts, scary outlooks for a lost companies that just a couple quarters ago werent too worried about it. David you say ruined. I wouldnt go that far with the economy. In fact, the American Consumer appears alive and well. What two major retail giants reported today thats fueling the rally on wall street and the doomsayers we ask is this really what a recession looks like . Managingaudreys on it. S . Eating right and staying active . On it audrey thinks shes doing all she can to manage her type 2 diabetes and heart disease, but is her treatment doing enough to lower her heart risk . Maybe not. Jardiance can reduce the risk of cardiovascular death for adults who also have known heart disease. So it could help save your life from a heart attack or stroke. And it lowers a1c. Jardiance can cause serious side effects including dehydration, genital yeast or urinary tract infections, and sudden kidney problems. Ketoacidosis is a serious side effect that may be fatal. A rare, but lifethreatening bacterial infection. In the skin of the perineum could occur. Stop taking jardiance and call your doctor right away if you have symptoms of this bacterial infection,. Ketoacidosis, or an allergic reaction. 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What might seem like a small cough can be a big bad problem for your grandchildren. Babies too young to be vaccinated against whooping cough are the most at risk for severe illness. Help prevent this talk to your doctor or pharmacist today about getting vaccinated against whooping cough. Talk to your doctor or pharmacist today a cockroach can survive submergede guy. Underwater for 30 minutes. Wow. Yeah, wow. Not getting in today. Not on my watch. Pests never stop trying to get in. We never stop working to keep them out. Terminix. Defenders of home. David take a look at this. These are shares of target and lowes, surging double digits today with target alone closing up more than 20 . This is targets largest percent gain ever, a new alltime high for the stock, its fueling a larger rally on wall street as the two retail giants reported better than expected profits for the second quarter. Target raising its outlook for the year, so is this more proof that all these fears of an imminent recession are overblown . Well, david, retail is kind of more fragmented i guess than its ever been. You mentioned the great numbers from target and lowes. We had some good ones from home depot but look across the street. Youve got trouble at macys, nordstrom, jc penneys which is actually trading for pennies as far as the stock price, believe it or not. Probably not what they intended when they listed the Company Publicly back many decades ago. Heres the issue. The way that a lot of these companies, the big guys, like target, walmart, which we saw last week which were very good, amazon, of course, costco, they have really improved their process with discounting, cost cutting, delivery certainly and involvement in the community. They have started to pull away lets say from the others. While the consumer is strong because of great job growth, and some wage growth, its still a bifurcated market when it comes to picking winners and losers in retail. Exactly. Which is why you just mentioned those department stores. Those are a little separate than target which i think is doing really well trendwise. Retail. Pardon me . But retail still. It fits into the retail bucket, kristina. The big box retailers kind of try to take themselves out of that but they did not adjust like the target and walmart did or at least as quickly. Now they are too far behind, in my opinion. If i were to focus on two optimistic points of view for the near term in markets, the first one is lately, theres been some big movements from hedge funds that are betting that the vix volatility index will be falling. So what that means is less volatility so they think stocks are going to be climbing higher in the near future. We saw a lot of movement with that. The second point was an interesting stat from Credit Suisse that after you have an inverted yield according to their statistics the s p 500 logs positive returns 88 of the time. Which i think is also a positive stat and maybe we shouldnt be focusing so much on this yield inversion that we saw yield curve inversion we saw and really caused the dow to drop 800 points. The glass is clearly more than half full, david, but what you have to worry about is Business Investment has been lagging. Ultimately that affects the economy. So the sooner they get this trade dispute out of the way, no trade war with europe, no trade war with japan, get usmca, the new nafta, approved by congress and get some deal done with china, by golly, you will see this economy really roar. The key thing is investment. In that sense, retail is a lagging indicator. Its we are getting the fruits of past investment. We got to plant seeds for the future. Between walmart and target, they do about 575 billion in sales. The fact they were able to grow their sales in midsingle digits tells us a lot about whats going on with the consumer. They are still in shape but leave no doubt, there are some termites out there. What i mean by that is credit card usage is at an alltime high. Thats problematic down the road. Yes, there are areas like manufacturing and a few other things that are going on, homes at the high level are coming down pretty decently. Were not perfect but were certainly not what the media has done over the last two weeks. I thought we were at 1930 compared to what some of this we were talking about. It looked like we had that 800 point drop last week, i thought they were going to take out the champagne and pop the cork, they were so happy we were dropping. Its just a damn shame they inject politics into the economy which would affect a lot of people if we do head south. The 800 point fall, they couldnt afford the champagne anymore. David the stats keep proving them wrong. Yes, there are problems here and there and you can point to a slowdown in the economy, but even though the cbo, the congressional budget office, is a very conservative institution, usually they underestimate growth. But even they with their new report thats out today, of course, it talked about the deficits, theyre terrible, but it had a 1. 8 growth in the future at a time when a lot of people in the media are saying theres going to be recession. Its a slowdown from 3 , but its a long way from any kind of recession. What about the escalation, though, the fact we sometimes, a lot of people go on air and talk about the United States in isolation. When you have these numbers coming from abroad like germany, the prediction that it could fall into a recession, the theyre already there. The lack of stimulus for germany, then this newest report i have seen that asia, asia pacific could be facing a debt crisis. Thats a major blow as well. Well, thats why the u. S. Has got to be strong. Thats why we have to have these new tax cuts, david, get these trade disputes out of the way which will be good for economies in asia and in europe. So our prosperity will be their prosperity. Youre right, we cant do it alone. David the president just said again today, he said look, i know we could be growing much stronger than we have been, but this is the one time that we have a chance to really squeeze the chinese to get them to honor agreements that they have signed that they havent been honoring. Yes. They are hurting but there are better ways going after specific Companies Like huawei than putting taxes on us, yes, they get hurt but we get hurt, too. I got news for you. If you hurt the number two economy in the world, you are going to hurt the number one economy in the world. So i dont know what the president thinks hes kidding there, if china goes down, we are not immune. You are already very fragile in europe. Not immune. I will go back the my tried and true, the debt and deficits around the globe and the leverage are just gargantuan and massive. If that ever comes home to roost, i want to be on a little dinghy in the middle of the pacific not having to worry about it. Not a dinghy in the pacific, no. Dont go in the pacific area. David 20 democrats courting big labor today but is their Union Support no longer a given as long as the trump economy keeps going strong . Theres a company thats talked to even more real people than me jd power. 448,134 to be exact. They answered 410 questions in 8 categories about vehicle quality. And when they were done, chevy earned more j. D. Power quality awards across cars, trucks and suvs than any other brand over the last four years. So on behalf of chevrolet, i want to say thank you, real people. Youre welcome. Were gonna need a bigger room. Since my dvt blood clot i was thinking. Could there be another around the corner . Or could it turn out differently . 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Whats around the corner could be surprising. Ask your doctor about eliquis. But allstate helps you. With drivewise. Feedback that helps you drive safer. And that can lower your cost now that you know the truth. Are you in good hands . David 2020 democrats hoping to win over Union Support today, making their pitch to big labor in iowa. Peter doocy is live with the very latest. Reporter if joe biden is going to get elected president , he knows that he needs support from Union Leadership. He launched his campaign at a union hall in pittsburgh and today, in altoona, he praised Union Leaders in iowa. The only reason we have a middle class is unions. Not labor. Unions. Organized labor. Unions. Reporter more progressive candidates came to make their pitches to Union Leaders as well, like Elizabeth Warren, who described a world where the government provides a lot more benefits than it does now, paid for by the rich. Its time for a wealth tax in america. Yeah. Thats a two cent tax, two cents on the top onetenth of 1 of great fortunes in this country. Reporter warrens plans are among the most progressive in the field. She supports medicare for all. So does cory booker, who came here to essentially undercut the electability argument biden 2020 has been making without ever actually sayi