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News on The 700 Club: April 26, 2017

As seen on "The 700 Club," April 26: Trump's 'massive' tax cuts would mean more money in your pocket; New DHS office gives 'VOICE' to victims of illegal immigrant crimes, and more. Read Transcript


Welcome, folks, to this edition of the 700 Club.

Hey, maybe you'll get to keep more of your money--

how about that?

WENDY GRIFFITHS: Woo-hoo!

And you can see if it's going to go to Washington for taxes.

The president says, no, we want you to help

get the economy growing again.

We might actually see 3% to 4% growth

and I think many young people have never seen an economy that

grows that fast.

Well, the White House is releasing the blueprint today

for the president's plan and now the administration and Congress

will get to work on a final bill.

Caitlin Burke has the story.

CAITLIN BURKE: Massive tax cuts--

check.

President Trump's tax plan expected

to fulfill yet another campaign pledge.

The president's guidelines are expected

to focus on cutting tax rates on businesses from 35% to 15%,

and cutting taxes plus increasing

deductions for individuals.

The White House is also hoping to make the tax

code much simpler and easier for individuals,

even just sending in their taxes on a large postcard.

And the administration says the cuts will

lead to faster economic growth.

During President Obama's last year in office,

the economy only grew 1.6%.

President Trump is hoping for 3%,

but many economists worry that Trump's tax cuts will result

in higher budget deficits, something Republicans opposed

under President Obama.

Democrats are not likely to go along with Trump's tax cut

so the plan could have a difficult road in getting

through Congress.

Still, voters made it clear that the economy, jobs, and higher

wages are a top issue for them and the White

House is working on just that.

And Wall Street is still optimistic

as the Trump rally is alive and well.

The NASDAQ closed above 6,000 Tuesday

for the first time ever.

Caitlin Burke, CBN News.

Well, breaking news.

Treasury Secretary, Steve Mnuchin

said this is going to be the largest tax cut and the largest

reform in US history.

Well, if the Congress will leave it alone, it will be.

Well, with us now is our good friend, Steve Moore.

He's the senior economic contributor for Freedomworks

and he's an advisor to the Trump campaign.

Steve, it's great to see you back again on the show.

Thank you.

Hi, Pat.

Boy, I love that idea.

My favorite element of this plan is that postcard return.

You see these dark circles under my eyes?

Those are from filling out my taxes the last 6 days

till 2 o'clock in the morning.

Why does it have to be so complicated, Pat?

I mean, why can't we have that postcard return?

You know, how many kids do you have?

How much money did you make?

You pay a flat rate, everybody pays their fair share.

We've been waiting for 30 years for that

and I've been waiting for this day for a long time

so I am excited.

You know, I majored in tax law at law school

and I used to fill out my own taxes.

I haven't filled taxes out in years.

I don't understand what to say and they jumped all over me

and said, well, stop trying to do that.

Well, let Pricewaterhouse do it.

You don't have any idea what you do on it anymore.

Look--

Well, you know--

Just go ahead.

You're right about that.

Let me just add one thing, Pat.

You know, what are the reasons we have

to have such a gigantic IRS?

Did you know there are over 50,000 people who

work at the IRS?

Agents who are looking at every financial transaction

you're making.

If we keep the tax system simple,

the IRS doesn't have to be looking

over your shoulder in terms of every decision that you make.

I think the American people have waited a long time for this

but you also made a good point at the outset of this

that, you know, a lot of young people

have never seen 3% growth and 3% growth isn't even that great.

I mean, you know, under the Reagan years--

you remember this-- we had quarters and years where we

had 5%, 6%, 7%, and 8% growth.

That's what we should be striving for in this country.

It'll solve so many of our problems.

That Congressional Budget Office,

they just have nothing but gloom and doom

and the glass is always half empty always with them.

Well, look, we've got this enormous debt.

We're talking about servicing the debt.

You have pointed, very cogently, that if we have the growth,

the debt can take care of itself.

Tell us about how that works.

Well, just that if we keep growing at less than 2%--

as your report just indicated-- we're

never going to get to a balanced budget.

You just don't have enough people working.

You don't have companies profitable.

You don't have the startups that make America great.

We've got to get this economic growth rate up.

If we just go to 3% growth-- and that's

not shooting for the moon, Pat.

That's actually less than we've grown historically.

But if we just get up to 3%, the debt burden

will start to reduce.

If we keep growing at less than 2%,

we're going to see rising debt.

We're going to look like Greece and Puerto Rico pretty soon.

So these stakes are very high.

The centerpiece of the Donald Trump plan--

which is something I worked on a year ago with Donald Trump

and he hasn't wavered from this and that's fantastic--

cut the business tax rates down.

We're the highest in the world.

My goodness, you saw what happened in the elections

with France.

Even France wants to cut their business taxes.

Sweden, Russia-- we have a higher tax

rate in the United States.

I mean this is not a happy matter, actually.

We have a higher tax rate than Russia, Sweden, France,

Germany, Japan.

How can we compete in that kind of world?

Well, are we talking now about a quick fix--

cutting rates?

Or are we talking about an overhaul of the overall tax

code?

Both.

Both.

Both?

Yeah.

Now, I think what's going to come first,

Pat-- and we'll find out later about exactly what the plan is

going to entail-- but the centerpiece of the plan

will be cutting those rates.

But Donald Trump and Steve Mnuchin

have been talking a lot about that postcard return vastly

simplifying the tax system.

Everybody in the country except tax accountants

loves that idea.

Well, you know, there's a special interest group

for almost every cutout in that entire code--

That's right.

--and they're going to be lobbying like crazy.

How are they going to--

You're right.

--get it through Congress?

It's not easy.

It is not easy.

You're exactly right.

I mean, you know, on K Street down the street

from where I'm sitting right now,

there are hordes and hordes--

hornet's nests of special interests

that are going to fight this.

So I'm not saying this is going to be easy, Pat.

We need the people to tell Congress

get this done because every special interest group is

whispering into Congress' ear.

Keep the deduction for this and that

and bull sperm and windmills and you know, NASCAR

race tracks and all this stuff.

You wonder how this stuff ever got in the tax code

in the first place.

You're looking at 15% corporate rate-- cutting that--

and the individual rate will go to what?

25%--

Probably closer to-- for the high-income people,

probably somewhere around 33%.

For middle class people, probably closer to 20.

20 for the middle class.

I forgot something that's really important, Pat.

Yes.

Sorry to interrupt, but this really important.

I forgot to say this.

Every small business in America is going to get a tax cut.

You know this-- there are 26 and 1/2 million small businesses

in this country.

Every one of those is going to see a reduction in their taxes

and this is not that complicated, right, Pat?

If the small businessmen and women in this country

have more money after--

at the end of the year, they can plow that money back

into the business, expand the business, hire more workers.

I don't understand why liberals don't get this?

Well these guys are so-called s-corp or are they

corporations?

Yes.

S corps.

They're individual [INAUDIBLE].

Yeah, but I just call them small businesses.

Small businesses.

OK.

They're just small businesses that

don't pay the corporate tax rate and they're paying

tax rates, Pat, as high as 40%.

And if you're in a high-tax state, sometimes 50%.

Sometimes half of the money a small businessman and woman

earns goes to the government.

Let me ask you about some deductions.

Yeah.

You you mentioned state tax.

We get to deduct that now.

You got gifts, charitable donations--

Yes.

--and then you've got the mortgage interest.

What's going to happen to those three things?

Well, that's yet to be decided.

One of the things I like about the Trump plan

is it increases what's called the standard deduction.

So you just check the box for a standard deduction

and that means for the vast, vast majority of Americans,

they're not going to have to keep the shoe boxes of receipts

and all of this stuff to get this deduction

and that deduction.

Just to have a standard deduction,

everybody takes it and then these issues about, well,

the mortgage deduction, the charitable deduction--

that all goes away and you vastly simplified the system.

That's how we get this down to a postcard?

All right.

Can they get this thing through this year, do you think?

Yes?

We got to, Pat.

The economy-- look at what happened with the economy

back after the election day.

Remember, I think I was on your show

the day after the election.

Remember the economy and the stock market just boomed

in the excitement of this new pro-business president.

And we had a very strong November, December, January,

February.

And then in about mid March, about a month ago, the economy

started to flatten out a little bit.

The stock market started to falter

and the reason was people were getting nervous about this tax

cut not happening and businesses are ready for this.

They want to expand.

So my advice to Congress-- get going on this.

It's taking too long.

You remember this-- in August of 1981,

eight months after Reagan was elected,

you remember that famous day in Santa Barbara when he signed

that tax cut and why should it take longer for Donald Trump?

So I want a tax cut signed into law

by August of this year retroactive, Pat,

to April 15, 2017.

From your lips to Congress' ears.

[LAUGHING]

Steve, thank you very much.

I hope we get it done.

Take care.

Ladies and gentlemen, I want to tell you right now--

this is very important for our country.

It's very important for the long-range prosperity

of our nation and our youth and we shouldn't be fighting,

you know, partisanship on this one.

It ought to be a bipartisan effort

and it'll be good for everybody.

And I think it's time you get hold of your congressman

and let them know you're in favor of tax reform

and it's got to be done now.

They can't delay on this thing.

There's no reason to but there will be so--

as I mentioned with Steve, there are so many special interests

who have carved--

that tax code is a monstrosity.

You remember, Jimmy Carter years ago

said that-- it was an old southern statement

but he put it out in his speech--

he said, it's a disgrace to the human race.

You remember that?

Everybody said, oh, the president said that.

Well, he's a Democrat and he was right.

Republicans said the same thing but it's got to be fixed.

See you've got taxes and you've got reform of Obamacare.

If he can get those things through,

it would dramatically transform this nation's

economic prosperity and is something

that needs to be worked out.

So Wendy, are you going to write your congressman?

Well there will be much rejoicing in the land

if this all happens--

You better--

--as you say.

You better sweet believe it.

All right.

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