Months, they cant have a replacement. The democrats are very happy in some ways they are going to get rid of obamacare. This was the one big answer paul politically. This was one big answer, a new solution that was going to be revolutionary and change things for the better. Didnt work. They are happy. We had it for six years. Theyre happy to dump it off. Im more optimistic, there are a lot of pitfalls, we can go through them, if we have momentum, get one part down on the replace part, it creates the conditions for further things down the road. So i think that the main thing is that they need to show momentum. They have the repeal and show good things being done. Because our goal is not, the problem is, obamacare is like, closing down a nuclear plant. There is all this waste. You cant turn it off and walk away. You have to be careful with that waste because it can kill you in the meantime. So i think they just have to have the momentum. Paul the argument is, that you hear, and i hear is, okay, well
have this replacement deadline a couple years and that will concentrate the mind, political hanging will concentrate the mind. I know politicians. They think it will be the other politician that will being hung, not them. Nobody wants to take a difficult vote. I think there will be trouble for republicans to get this done. It is going to be difficult for year but lets start with a fundamental here which is that obamacare, the law, is not popular with the public. This isnt merely a political football. It is the health care system. While not everybody is involved with obamacare, those who are have had a terrible experience. Im not sure the democrats want to be seen out there simply being totally obstructionist and not allowing this process to go forward. The republican need to be transparent. They need to show momentum. Im hard put to see benefit for democrats saying we wont participate in this. Paul democrats cooperate, kim, you wrote a column this week saying that the republicans should not repeat of obamas mistake being totally partisan,
should reach out to democrats but is there any prospect they will get help . It is if they do this piecemeal. That is what republicans increasingly coalescing around. Rather than one big replace measure a piece here, a piece there, issues appeal to specific democrats and those that are up for reelection in two years time, put a lot of pressure on them in their home states. And try to turn this around on them as well, say, the only people who are in fact making america sick again are those of you who are helping us to fix the problem. So this is going to be their strategy. I think if they attack this on a little bit more of a piece, by piece, basis, they have a shot. Paul they can make progress. Thanks, kim. Still ahead, as the 115th Congress is sworn in, all eyes on the republican majority. After obama cares repeal well tell you what else is on the todo list for the gop. Vitamins and minerals. For the strength and energy to get back to doing. What you love. Ensure. Always be you. Keep from having another one. And im taking brilinta. For people whove been hospitalized for a heart attack. I take brilinta with a baby aspirin. No more than one hundred milligrams as it affects how well it works. Brilinta helps keep my platelets from sticking together and forming a clot. Brilinta reduced the chance of another heart attack. Or dying from one. It worked better than plavix. Dont stop taking brilinta without talking to your doctor since stopping it too soon increases your risk of clots in your stent, heart attack, stroke, and even death. Brilinta may cause bruising or bleeding more easily, or serious, sometimes fatal bleeding. Dont take brilinta if you have bleeding, like stomach ulcers, a history of bleeding in the brain, or severe liver problems. Tell your doctor about bleeding, new or unexpected shortness of breath, any planned surgery, and all medicines you take. Talk to your doctor about brilinta. Im doing all i can. That includes brilinta. If you cant afford your medication, astra zeneca may be able to help. To the majority, especially to our returning members, i want to say this, this is a once in a lifetime opportunity. The people have given us unified government. And it wasnt because they were feeling generous. It was because they want results. Paul that was paul ryan addressing his fellow republicans tuesday after he was officially sworn in as house speaker, with the gop of the presidency and both houses of congress for the first time in a decade, were back with a look at what they can do and what they must do in the first year. So, dan, lets step back, a year from now, if were looking back at that first year of congress. What would a successful year look like . What would they have done . I think first thing we should say, these republicans with the todo list bitten off more than any congress possibly can do in a year. Certainly they have to get the
supreme Court Replacement for Antonin Scalia confirmed. That is at the top of the list. Paul okay. Secondly i think should have a Tax Reform Bill done by the end. Year and perhaps some financial reform. Paul doddfrank, regulatory . Doddfrank. Look, obamacare was a big issue in the election. The economy was bigger. The republicans and President Trump have got to get the economy restarted. That means doing economic reform, getting the government off the economys back. How they will do that simultaneously with the sort of obamacare process, repeal and replace that we were just discussing, thats going to be difficult. Paul Supreme Court, tax reform, regulatory relief. What else do you want to see, bill . I think regulatory relief is part of a broader reform how the government does business in the obama years, we worked through the courts and federal agencies. What i am hoping the appointment of carl icahn there will be a unified approach across all agencies. Paul outside advisor, wall street investor. That is really what a lot of
businesses complain about, this Regulatory Overreach and so forth. The process has been corrupted as well, without the proper hearings and time and so forth. So, im, i have a lot of hope. I think its a businessman, donald trump understands the problems of the regulatory burden. He probably dealt with them personally. Paul anything else on the list, joe, that you think, they need to get done . And what do you think they will get done . Are you optimistic as these two guys . I think they might end up overloading their bandwidth. I think they have to do those big things. You heard paul ryan say the people elected us to get results. They have to keep that goal in mind with every, every bill they pass. They have got to get growth from 2 to three to 4 in order to get wages rising. That is what they will be held accountable for. Paul kim, i want to read a donald trump tweet this week about a big ethics flap on capitol hill where congress, republicans tried to change a
rule to modify an outside ethics watchdog. Trump weighed in with this. With all that congress has to work on do they really have to make the weakening of the independent ethics watchdog, as unfair as it may be, their number one act and priority . Focus on tax reform, health care, and some other things of far greater importance. So thanks a lot, mr. Trump. You know, weighing in like approximately p. E. Against the republicans. The republicans stampeded and caved and changed their mind. Will that happen to republicans every time, they will scatter like wildebast when donald trump make as tweet . They ended up putting up a bill they hadnt laid the groundwork for it. The press said democrats were able to redefine it for them. This is the not moment they
should have been doing it. This is you dont run in immediately say well tackle a priority they hadnt even talked about really publicly before. So he had a point and they scattered. You make a good point is that, he has got a lot of power via 140 characters on twitter and i think at times he may use that to impose some discipline. But it could spread a lot of disarray within the Republican Caucus too. I think this is leadership issue. The leadership said dont do this. The rankandfile overruled them. They did it. And then they reversed themselves. They should have said if you dont want to do this, dont do it. Makes it clear politicians on capitol hill are perfectly capable of running off the rails. I want to make a point in defense of Donald Trumps tweets and so forth. He wants to change washington. The washington doesnt move. The process extremely difficult. They would rather do nothing. Trump is like taking a two by four to the side of the head of a donkey. That is what his job will be. He will have to do that to shake them up to get them to move. Paul now, what about paying for the wall, bill . That story came out later in the week. There is a wall on the mexican border. He is saying, well, well get congress to pay for it. Be reimbursed. Paul not the mexicans after all. He is saying the mexicans will pay later. Paul sure. We have been dubious about this. If youre going to build through the wall with the legislative process, let congress do it. Paul it is an american wall. He may pay the price. Look at priorities from opposite point of view. What is the worst thing that can happen to donald trump and presidency, a year from now, the working people that put him in, my life hasnt inproved. I dont see job prospects. I dont see this this is side of joes argument, Economic Growth. They really need to do things and things that will get the economy moving. The stock market seems to be reacting pretty well to his things but it has to go down to ordinary people. Paul thank you, bill. When we come back, Republican Leaders countying down to the Trump Presidency and gearing up for an historic opportunity. Is a time for a tax overhaul finally here . Well ask economist art laffer next. Seeing is believing, and thats why
were opening more Xfinity Stores closer to you. Visit us today and learn how to get the most out of all your services, like xfinity x1. Well put the power in your hands, so you can see how x1 is changing the way you experience tv with features like voice remote, making it easier and more fun than ever. Theres more in store than you imagine. Visit an xfinity store today and see for yourself. Xfinity, the future of awesome. Were going to be working with the congress over the course of the first several months to construct the kind of tax reform for businesses and individuals that will unleash the boundup energy in the american economy. Paul Vice President elect mike pence this week putting tax reform at the top of the gops ambitious agenda, promising to
move ahead on a overhaul in the trump administrations first month. It is something that republicans in congress have been advocates and planning for years. Economist art laffer is chairman of Laugher Associates and was an Economic Advisor to president ronald reagan. He joins me from nashville. Arthur, great to see you again. Good to see you, paul. Thank you, its fun. Paul Stock Market Rally since election day has been big. What are investors looking for anticipating . I think theyre anticipating tax rate reform. I think theyre anticipating a lower Corporate Tax for sure. When you discount those profits coming forward it leads to a fairly attractive stock market. I think this stock market reflects their optimism about the future. Paul should which be concerned there is a stall in the rally last three or four weeks . Not really. We had a similar situation when reagan came into office and the market then went way down, as you may know in august of 1982. The market hit its trough. It was down from reagan coming into office to august of 1982. Then boom, it you had the biggest boom of all time. Paul is Corporate Tax reform and tax reform more broadly, is that for you the centerpiece of this growth agenda. Is that one thing they have to get done to insure growth . He really needs tax reform, you do, but obama care is serious regulations are serious. I hope he symbolically gets rid of the death tax. That would be a shot across the bow well have a major change in policy going forward. The death tax is just disgusting. You collect no money and put barriers everywhere. Corporate tax down to 15 , paul, will go a long way bringing back prosperity. Paul trumps tax rate is 20 , excuse me, republican rate is 20 . Strums is 15. If they do 20 can you live with that . Of course i can. It is such a low bar. Let me say, paul, this
administration has such a low bar, it would be an act of fearless aggression if they could worsen the economy. You just cant do that. And not only is it a low bar for the economy, just like we had after jimmy carter, but they dont have any chance of losing congress in two years, in 2018, because the tilt is way against the democrats. They have four years to get this economy going. And that is the single and only thing they need to do. All these optics and all this other stuff is just nonsense. If they get the economy growing, they will win reelection in landslide in 2020. If they dont, they wont. Thats it. Paul that really does focus on tax reform. Youve been a free trader all your life, art . Yes. Paul you view it as one of the pillars of an Economic Growth country and an Economic Growth strategy. So what do you make of this plank of the Republican House tax bill, which is the first one that will move, Border Adjustability . Which means you levy a 20 Corporate Tax rate, if that is the final rate that turns out to
be on imports but you dont levy that tax on exports . A lot rebate it. Rebate it to exports. Paul a lot of people, retailers say it will raise prices for consume isers. It is protection it. How do you respond to that . The truth of the matter a Border Tax Adjustment is a nothing policy. What youre doing tax on imports the is same thing as tax on exports. That is Learner Stem Mitry theorem. A tax on exports they offset each other. This is way to pandering to people who want protectionism without having protectionism. Border tax adjustment is not a problem, but tariff as a standalone is very serious problem. Paul but The Border Adjustment is first order of business until Exchange Rates adjust, it will raise prices for retailers who import their goods, walmart and others will it not . It could, it could. You will have an adjustment globally to the new Border Tax Adjustment. That is exactly what they do with the vat in europe. So it is very common practice to be done. I hope it buys off the protection its and gets them out of the way so we can focus on good things like tax reform and freer trade. Paul look it, on the trade side, youve got a lineup of people, Peter Navarro in the white house. New office of trade we havent had before. Bob light highser, a Steel Protectionist lawyer at Trade Representatives lawyer. Wilbur ross, another steel owner who is at the commerce department. That is a quite a lineup, very different line up of Trade People You Saw in the Reagan Administration or frankly in any administration in a long time. How much does it worry you . It does worry me. This is one economic area that bothers me. The bills have to go through congress. They have to go through the house and senate and committees. There will be a lot moved race there. The one thing really is true, the Trade Agreements that have
been done are really onesided and they really are bad. In japan, nontariff barriers, it would cost you 50,000 to retrofit a u. S. Car to be able to be sold in japan. That is protectionism in the extreme. You can see what it is doing to japan. Their economy is really the worst every. Paul exempt we dont have a trade deal with japan. That is the whole point to get the tpp to reduce the Trade Barriers and trump doesnt want to pass that. It excludes all the nontariff barriers and excludes Currency Manipulation. You know very well japan devalued the yen to explicitly improve their Trade Balance and which is a silly idea to begin with and hurts japan yet Currency Manipulation is excluded from these deals. What i would like to see china and include all these countries do a real trade one like kennedy round tariff, dropped all tariffs by 35 , something major
than awful little bills that have all the exclusions, all this stuff that makes no sense to my. Paul lets look ahead a little bit, art, to dow is now a little under 20,000. What do you see it going at end of the year . Do we see 22, 23, 25 . This year 2017 i think well be very happy if it is just up at all for the year. Paul really . Yeah. If you pass a tax bill, it wont really take effect, paul, until january 1st, 2018. Paul okay. That is when rates, if you know they have tax cuts next year, what do you do this year . Defer income and employment for a year. That exactly happened to us and reagan. We pass ad great tax bill that started on january 1st, 1983. Paul right. That caused the 8182 deep recession. So well have many so of those Delay Effects happening here. I think first year just to get their feet on the ground, get bills in place. Then i think by 2018, 19, 20, you are will see this economy skyrocket. Once it starts, you cant stop it. They will all join on board and it will be a race for the exit. It will be fun. Paul thank you, arthur, for being here. Good to see you. Thank you, paul. Paul still ahead, so how will democrats respond to donald trump and his agenda . Well get our first glimpse next week as the President Elects pick for some top