930in716 December 19, 2017 Tax Reform Vote

Tuesday, December 19th

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

It's 930. In 716. Tax reform a critical vote. Honda podcast topic noting though but it's expected to pass then what's it all meet. They're gonna be winners and losers in this thing and of course like everybody else I'm trying to figure out whether I'm gonna be a winner or loser I'm Tim linger on the podcast powered by the Brothers of mercy five star rated skilled nursing residents offering affordable living in a country setting. Their long sought political goal within grasp Republicans in congress are set to catapult sweeping one point five trillion dollar. Tax legislation through the house. Ruling over a dozen GOP defectors from high tax states. The republicans' final drive to deliver the tax package to an eager president trump. Begins today with the vote in the house quickly following a vote later in the day or Wednesday in the senate expected to seal the deal. Both tallies likely will cling along party lines. The center result was in doubt in recent weeks only on Friday did Republican leaders have meant that needed support for the legislation securing endorsements. From wavering GOP senators Marco Rubio of Florida and Bob quirk or of Tennessee. So what's it all mean well IE. You know I don't know I mean I think that that everybody has been there and bought off one way or another political commentator doctor Kevin Hardwick on WB ENN you know there's a so called worker kickback Yorkers senator from Tennessee. Who was totally opposed to it because it was gonna increase over ten years a deficit by a trillion or trillion and half or whatever. And he was one of the last guest deficit hawks in the republic Il they used to mean something to Republicans but now I. I guess it doesn't matter will he'd you know the mysteriously changed his vote from no to yes. And then it comes out that there's a provision last may provision they got put into it that benefits him now he says. He's he was unaware that because he hasn't read the bill which of course begs the question why are you voting on this or why are you changing your mind if you haven't read the darn bill. Are you know it's not good when the flip side of things you can say wait wait wait I haven't read the bill yet about it and I and that's better than renting a case yet you know here's the problem they're gonna be winners and losers in this thing and of course like everybody else I'm trying to figure out whether I'm gonna be a winner or loser. I'm afraid I might be a loser but I'm not sure but I think that. The majority of Americans in and including your listeners will probably be winners by a few hundred maybe a few thousand dollars for there'll be some very very big winners of course at the top or top end of the income scale. And then there'll be some losers in the losers will hear from they'll be very very unhappy obviously. But then you know you've got bit bad trillion dollars or so headed for the debt over ten years that eventually if we end up like Greece is gonna make it's all losers. Here's the thing there's a lot in that bill. That no one has read about worker has a read it I grabbed her and go through the Internet though you know big grain of salt there so funny and Ireland. Net but I'll bet that most of your listeners I'll bet that you don't know Brian you don't know Susan. How this is gonna affect divorce. There's a provision in there that divorces after 123118. That's a year from now. A divorce. Decree. After that date. The alimony or the separation maintenance agreement will no longer be tax deductible or which which think about it that's gonna give a perverse incentive if someone is out there that. In Iraqi marriage. They're gonna say well do I work it out there and I've got till recovered thirty distorted out of either critically important accident that could be deductible right Karen and I mean that's that's I'm sure that's news to use that's news to most people out there. And god knows what else is in the air like that it's news every one and end this thing is like and so rushed through. It's kind of like obamacare remember Nancy Pelosi we got to read the bill to find out what's in that what if I don't know what's in their right a lot of people didn't like it. Any inkling peopled it looked good too with the tying. I mean you know that this is this is going week to fast I don't think it's I don't think it's good government. That you mention it going way too fast for how much of this is the a lot of times when something like this moves through people look at it and say oh this is the final we're gonna have to live with this for eternity but in reality if and I you know everything switches in the house and senate whether B 20182020. Mike this just be the first step on to further well. Well it's well I don't know because let's say the house flips. You're not gonna get the bill any reform to reform through the senate. Let's say the senate flips also. You're not doing anything through Donald Trump to beat Hiller Mike Pence is veto of trump should you know spur some reason disappear. And then you know I mean this is this is generational wheat we haven't done anything this big since. Like 1986. And he thirty years ago we did something like this. You know when when we reform taxes under Reagan. And that was a much people will tell you that was a much slower much wealth more well thought out wrote. Process there were winners and losers back then by the way but at least people knew had a better sense of what's in the Bill Ayers thing has been rushed so quickly. You're right about the fact it probably most members of congress haven't read this thing but there's that rush to get it done yeah. And it's again it's gonna it's gonna affect all of us. A big time. Why is there a rush to get it done well. I think I think the the president in and more importantly the Republicans need a victory of the legislative victory by the end of the year. They've this one and missed. At health care. Things you know haven't gone swimmingly for them. They need a victory edit they pass that this will be a victory this is a major accomplishment and and it's a feather in Donald Trump's cap no question about it I mean this is an easy to do in the same way that Obama care. For better or for worse was a feather in Barack Obama's cap so they wanna get this done by the end of the year and give them some momentum in the next year if they fail. We already things are not looking good for Republicans in 2018. If they can't even do this when they're so close. You know their bids it's gonna hurt their chances even more. Kevin Hardwick our Republican member of the Erie county legislature's joining us in Kevin you were talking about the fact that nobody's really reading this over on Capitol Hill that. Talking about the tax bill. Is said to impart to the try to do so much in a short window here they've delayed this spending bill and now they're facing a deadline for both things it wants. Yeah you might recall win. President trump card his deal with the that the timing was calling him chuck in the NC this past summer and all the Republicans were really upset. Because they kick the can down the road and the government shut down and the debt ceiling which is even bigger than a government shut them. They kick hit the tee and on the road in the big government shut down was gonna come a week or two ago and then they did the re update for another couple weeks. So yeah there there is a lot on their mind there's a lot going on Capitol Hill these days. And the and the government shut down is is is looming right after this tax thing they've got to turn to funding the government. And then they got a holiday break out this though if you listen Esther Julius today's report. She says we dodged a bullet here this is a lot better than those individual pills at the house is sadly it. It certainly got better because we saw people saw what was in the house building saw what was in the senate bill which was even more important because that was just stunned right right recently and then they went to conference. And they brought up all the problems people were able to go through it her for a few days and find this is a problem this is a problem this is a problem. And some of those problems are solved now coming out of conference there's some new things added and some old things taken out and people haven't had a chance to digest this are still a lot of bulletin. Mentally with this tax bill could you come out a loser but still feel like a winner because as far as we know most people should see. Less taken out of their paychecks every week so you'll see that increase but. With a lot of the deductions taken away mean that's something and able don't really think. Well yeah you wouldn't see it until the following year when you get your W two and you thought you do your taxes and and then you find out oh I'm I'm not doing those wells I thought it was. They're taking more money out of my paycheck that that happens to me all the time I normally end up paying my taxes. On April 15 because certain things are complicated and I've got a couple jobs my wife as a as it good job as a teacher and and things don't work out they don't take enough falcons and you know I'm OK with that during the year it's come April 15 and get really upset. Painful month for him it is painfully aware that we have Republican member of the Erie county legislature Kevin Hardwick joining us live in studio this morning talking about everything going on. In Washington and all the focus is on the tax bill cannon whom were. Talking about the tax film what it includes after it's passed. Some things that you think you're really gonna stick out for people. Well I mention I mentioned the divorce thing earlier you know after after next year after 2018. New divorces alimony separation agreements things like that won't be tax deductible they are now which of course provides a perverse incentive you're gonna do this entry. If you're gonna break up the marriage let's do it in 2018 because if you wait to 2019 you know you're you're going to be able to deduct the alimony. But they're they're things like home equity loans for instance which a lot of us relying yen. Are are are no longer going to be tax deductible now I'm not sure because I picked this up on the Internet and and of course the Internet is not not all decide it's always right. But I'm not sure whether that's existing home equity loans are included net two or just do home equity loans but regardless home equity loans. Are you know are no longer going to be tax deductible. There are things though that that you remain in a course because people a lot of money at lobbyists. And they make sure thing state enemy we've heard so much about this carried interest hedge fund managers and private equity managers rely on him makes him a lot of money. That that remains in now what is carried interest. It would take me like twenty minutes to explain it if I understood it so I don't understand that's not the waste your time. So there are things in their things out they're gonna be as they say winners and losers one of the things that that I'm upset that I'm losing his personal exemption you know. For each person in your family you get a personal exemption of this year I think it's 4050 dollars. So about 4000 dollars and get three people in my family right now I like myself and one dependent. That's 121000 dollars right off the top that is not taxable this year. That next year will be taxable now they're doubling my standard deduction. But I don't take the standard deduction. And I'm I'm up around you know I'm close to 24000 just shy of it anyway. So I'm good I'm gonna lose lose I'm gonna lose about 101000 dollars. Of income that's not tax currently sold so you know. Right now why I pay. First 34000. Or so all of my income because I've got my. Much I'm sorry my it's might itemized deductions plus my exemptions. Give me up to around 34000 dollars first 34000 knows I make it yours free. Next year that's gonna drop to 24000 because it would take the standard deduction I mean I have no no exemptions. So I'm losing 101000 dollars 1010101000. Dollars more of mine will be taxed now. You can say they'll be taxed at a lower rate because the brackets are good draft and that's true. And I could be a winner or am I gonna be a loser I'm natural have to I'll I'll have to do the calculus. HM most people they don't know and it's still too early to tell don't know. It's they're. Again there are good things are bad things in there but we don't know. The one thing we do know is that the child credit is being doubled from a thousand to 2000 Alex were eligible children. And the other thing important to people like me is that the income cap is being raised on that if you make over a 1101000 dollars taxable income. This year you can't claim the child credit you can't get that thousand dollars but next year it's been up to 400000 dollars for married couples which is gonna mean a lot of people. You know what I would argue or middle income people. Are good and that qualified for the child credit and it's going to be doubled so it's going to be a windfall for them what most people again most people will be. Readers in this most people make more there'll be some really big winners on the upper end of the income schedule yielded Bill Gates and companies. Is it his income now his top rate. Is 39 point 6% you know you make over 400 some thousand dollars every additional while the dollar is 39 point 6% it goes right to the federal government well next year only 37%. Will go that means two point 6%. Up everything over 400000 and change. You know you will be able retain which is really good for someone who's really rich as for the voting much is along party lines. I'll be voting no. In consistently so in. Because this is a massive and take away from middle America massive giveaways to corporate America. Western New York democratic congressman Brian Higgins on WB yen. The corporations that are permanent and accept 14%. And they were recording record profits they need to pay their fair share in the past. Do you look at this final bill as a better for a New Yorkers then what was proposed earlier running congress. Well it's a little bit better but he still lose the over 100 year protection. He's able to deduct as state and local taxes. All union says the fact of the matter is when the when the central income tax. It was authorized they also provide it for a deduction for state and local taxes to ensure. That the federal government didn't tax those those people twice. And that's what securing here's there with the stripping away or at the beginning of mr. ping to waive that protection. Excessive. April action. Is it all about the salt deduction for you. No I think it's corporate tax cut I don't think it needed in keep in mind that. Corporate tax revenues there about 9% of its total federal budget they used to be 50%. It when they were 50% we still had high economic growth. In fact it was around 8% in more. At that substantial economic growth. Corporation they're recording record profits they're hiding profits foreign accounts and also treasury bonds. They should be paid their fair share some warns that the corporations are people too well if you believe that these people are not paying their fair share. We've done talks a lot this morning about a bomb Corcoran is a switch to back the bill and the different scenarios surrounding it his a defense and as saying there's no kickback but he has a really read and saw what that kickback would be in the bill. And that idea that people haven't read everything that's in this tax bill that's going to impact just about everybody. Is this moving too fast. Culture it is I mean nobody read the full tilt because they're provisions in the bill to gain if it weren't in the though three days ago in those provisions. I kidnap and critique yet and in many cases they represent hundreds of pages. So anybody tells you they read this bill in its partners. Entirety should be skeptical lot. We have we need to go through the bill line by line did that for eighteen hours. But that changed profoundly. From what we did that several months now so. It's very very rapid in this you know this worker issue is raised a lot of eyebrows. Primarily because. If the provides for a deduction for real estate investment. Which it is you know doesn't have it in many case that has employee he. Pop worker has a lot of those kinds all being. Anti within the last week now we gas. And you know when you do reconciliation keep in mind. The objective. 1222. To resolve the differences between the house passed bill in the senate bill. It was into introduce the provision was in the provision that would please introduce. It will directly benefit him in partners in fairness. But the question is why would you put in there and did that influence the changing his vote for McDonnell. Last week we yes this. Was this bill. Rushed through do you think. Yeah block it's it's a big bill I mean you know the last time he did care reform what is 1986. I had a lot of hearings. Members of congress earned we're we're general practitioners that he didn't look very rare. Rarely do people have an expertise. In these issues are very complicated issues a lot of players on that protect our. And you DDD. At the health. Various organizations and individuals that do just kind of worked there experts. Stay tuned. Back tomorrow. That's 930 in 716. We're back tomorrow with a net a radiation from the studios of WD EA and buffalo.