Is Trump capable of kissing and making up with GOP Senators to get tax reform passed? Will Trump’s tax plan force Springfield to cut taxes? If unions in Illinois are so great, why do they want to punish people who don’t want to join? Wall Street Journal Columnist, Senior Economist for CNN and former Donald Trump adviser, Stephen Moore joins Dan and Amy to discuss.
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Dan: Good morning. Dan and Amy uh Trump uh did a sit down with Lou Dobbs yesterday and uh Amy: You mean the the biggest suck up interview I’ve ever seen in 10 years D: Uh it was it was friendly. A: Oh yeah, it was real friendly “You’re the best, no you’re the best, no you’re the best.” Lou Dobbs Clip: I’ve got to ask you, you’re one of the most uh uh I would say by the left in particular reviled, even hated uh men to ever hold your post. Donald Trump Clip: I would say- Lou Dobbs Clip: “You’re also one of the most loved and respected. Donald Trump Clip: I would say that also. Lou Dobbs Clip: In history. And how does that feel? How- Where is Donald Trump? Today’s uh viewer just now beginning your presidency. Donald Trump Clip: So the one thing that I really thought - cuz I thought I was treated very unfairly by the press during the campaign- Lou Dobbs Clip: Right. Donald Trump Clip: And when I won, I said “the good news is now they’ll start treating me well,” but they got much worse. Lou Dobbs Clip: Right. Donald Trump Clip: Lou, they put on stories on CNN on on NBC and CBS and ABC and NBC being an offshoot also with the MSNBC which is ridiculous. They put out stories that are so false. They have so called sources that in my opinion don’t exist. You know, they’ll say “sources have said” they don’t know. They’re sitting down, they just make it up. It is so dishonest, it is so fake, and you know I have came up with some pretty good names for people that-. I think one of the best names- you know I have really started this whole “fake news” thing. Now they’ve turned it around and then now they’re calling stories put out by dif- by Facebook fake and they’re fake! What could be more fake than CBS and NBC and ABC and CNN? D: I dunn- alright. Why don’t we put that question I thought was rhetorical in nature to our friend, Steve Moore, Heritage Foundation economist, CNN senior economist. CNN just mentioned there by the president. Steve Moore, what do you think about your employer being mentioned by the president? Steve Moore: Hi guys, good morning. Uh by the way I know a lot about what it’s like to be reviled D: Yes! S: My ex wife- (unintelligible over laughter) Look, I think there’s a lot of truth to this. I mean it-it is, he’s an extremely polarizing president. Uh people, ya know I walk down the street when I’m in towns all over people will come up and “Trump is doing awesome!” but then other people just truly think you know that there’s a serious campaign by the left to try to get Trump impeached because he’s mentally unstable. . D: Well and this week- S: I-I would make the case by the way that the people who think that Trump should be replaced for being mentally unstable are mentally unstable D: Right. And-and this week that effort was joined by uh two republican senators, Bob Corker and Jeff Flake, both lame ducks. You- we all know what they said and it’s been discussed, and they’re entitled to their views, uh where do you think they come down though on the all-important and uh thinly margined senate caucus when it comes to moving tax reform to the president’s dex- desk? S: Well uh by the way, let me say one thing loud and clear to your audience cuz this is just the topic du jour, the topic of the week,uh and so before anyone asks, we’re not going to take your 401K plan away from you. A: Yes. S: Okay A: Sure D: That was next, yes S:That’s all the left has been talking about “oh Donald Trump is going to take away your 401K! Ah he’s going to take money and stock” there was some talk about maybe turning it back a little about how much money you could put into the account maybe, but I very much doubt that. But I guarantee you 90% of your 401Ks are not going to be taken away from you. Uh look, if 55 million people have these accounts, obviously they’re pretty popular with people. Um so your question was about the senators, uh Icount, let’s say three senators who hate Trump’s guts right who are republicans; John McCain Bob Corker, and Jeff Flake, and you know that’s bad news because guess what? Because he needs one of those three if we’re going to get tax reform passed cuz none of the democrats are gonna write 50 votes that he’s gonna need, so you know he’s got to repair relationships with with them um because he needs them if for no other reason than they’re still gonna be around for another A: Term- S: You know year or so and um. Now the good news is, they all voted for the budget um that enabled the tax cut last ya- you know last week so I think they’re gonna be on board, but it doesn’t make it easy when these senators you know talk about reviling Trump, I think those three do and I think the reason is th- Tru- Trump lost the healthcare vote was personal animosity between John McCain and and Trump. A: Well why can’t they all kiss and make up? I mean can you make that happen? Have a big kumbaya moment cuz I mean really- S: You know- A: You don’t want them to block his political agenda. S: Of course not not! Well uh you know, maybe he can get them out on the golf course. A: Well- S: You know it’s it’s it’s you know that whenever, you know whenever he has problems with uh Rand Paul, he takes him out to play golf and and they do kiss and makeup. Look, you know I think it’s harder to ah ah I am a big fan of Donald Trump, I work for him, you know I think what he’s doing for the economy is magnificent, but he has an incredible character defect that number one he refuses to admit when he’s wrong and number two, Trump actually seems incapable of kiss and making up. You know I don’t know if it’s just a New York thing but when somebody slugs at him, he slugs back. He-he just, it’s impossible for him to you know and uh you know that made up story about you know how he was with uh with uh you you know the the woman with uh uh husband and uh that that died in uh in uh Niger D: Yeah Sgt. Johnson, yeah right- S:Horrible story. I mean uh I mean look I uh I thought that uh- my only point is, you don’t you don’t get in a fight with someone like that, right? I mean you just say “I’m sorry if you misinterpreted what I said, I’m so, you know, s-sorry for you loss” this isn’t that, but you know sometimes Trump is just incapable of that and it’s just turn off for awhile you know people a lot of people say “I like Trump’s policies, I like a lot of things he’s saying, but his personality is just so grating on me, and, you know, if he wants to get reelected, he better work on that.” D: Yeah, it’s a fair point. Now uh with respect to what uh will be included in in the final form coming out of the House of the tax reform plan S: Yeah D: Uhh this is obviously important to a hi-tech state like Illinois at the state and local level uh the uh state and local tax deductions, do you think they’re going to be in or out? S: Um I think it’s gonna be in. And I think it will affect ah-what uh I’ve advising them, it’s just going to affect people who make over say $500,000 a year, so no middle class person will be affected, but the uh- it is important! There’s people within the state of Illinois, I used to live in the state of Illinois. Illinois is now on of the top two or three tech states in the country, so you would be affected by this. But I-I see it as a two-for-one. If we get this tax cut done and we eliminate the state and local tax deduction, number one you get a federal tax cut, number two is going to force Springfield to start cutting your taxes because if you continue to fight *indecipherable over forced laughter. But that’s uh that’s a laugh for the day, right? No, okay but look if they’ don't cut taxes” in uh Illinois we uh go to the state level elections, there’s only one thing left for people to do, and that’s- for those who are still there- to move out of Illinois because right now, the only reason that Springfield can even semi get away with these massive tax increases all the time is 40% of it is paid for by people in other states because you get to write off of 40% of it so uh yeah I want to get rid of the state and local tax deduction, it’s my least uh favorite provision in the tax code, so I think it’s unfair for people who live in low tax state tax states like me to pay more taxes to pay for people in high tax states, like you guys in Illinois! D: Where’s Amazon HQ2 gonna go? A: I was just gonna ask that. S: Sorry? D: Where-where’s Amazon HQ2 gonna go? Dallas? Atlanta? Where’s it gonna go? A: Chicago! D: We want a prog prognostication from S: Come to Chicago baby right next to Wrigley Field! A: No actually there’s Michael Reese Hospital that place that’s empty and that’s on Lake Michigan. I mean it would be an absolute gorgeous place. But the the you know the business economy, the environment is just not good. D: Yes it’s just- S: Yeah. Look and I’ve said this so many times on your, Chicago is a world class city, it’s one of the greatest cities in the world, I think the top ten, and it has so much to work for it other than the taxes and that you’ve got too much crime. I mean other than those two things, I mean ca-can you imagine if you put someone in charge of uh the state of Illinois and the city of Chicago who who you know moved you know away from the high taxes, who was gotten serious about improving the schools, and uh and uh getting some crime off the street I mean Chicago would be like (unheard) for goodness sakes. It’s uh it’s all of your wounds are self inflicted. D: Absolutely. S: There’s no question. D: Absolutely. He- there’s an interesting, there’s an interesting study by Thumbtack, business friendliness study. Thumbtack, a San Francisco based company that specializes in matching customers with professionals, they uh surveyed 13,000 small business owners that work as electricians, music teachers, wedding planners wellness professionals across the spectrum uh and they uh graded states by a number of metric: ease of starting a business, regulations, tax code, licensing. Uh for uh Illinois, licensing F, tax code, F, environmental factors, F, regulations, F, ease of starting a business, C- S: Oh. D: Overall business friendliness, F. Uh so that’s who where you’re hearing, you’re hearing from these small business owner entrepreneur, so it’s not just the big companies and trying to land like land the Amazon HQ2, it’s those it’s those startups. S: Well let me give you an example of what you’re talking about, and this is just one of those things I just thought it was so crazy, so my my brother uh who still lives in the Chicago area, many years ago started a moving company trying to move people from their apartments and so on. You know what’s easier than starting a moving company, right? Did you know in Chicago, you have to get a license to do that? A: Right. S: And what happens is you have to go to the Chi- what I think was the Chicago Commerce Commission or something like that and you have to actually, you have to prove to these commerc- the people on this commission that there’s a demand for your service, so what happens is all the other moving companies they’re gonna say “no no, we’ve already got that covered. We uh we don’t need that company here.” It’s like McDonald’s saying “no, no, we don’t need that Burger King.” D: “We’re good!” A: And Steve, I don’t know if you know, but it’s now a crime in Chicago if you refuse to join a union, it’s a misdemeanor. D: Well it no, no it’s not- no, not yet. S: I saw up to one year if it’s not it’s up to potentially one year in prison? I mean it’s gonna be a higher higher crime then rate. D: Yeah they uh failed to override the government’s veto in the house yesterday, so it’s not Illinois law. A: Okay. D: But the fact that it came as close as it did, and they’re gonna go back at it next week probably. Says something about Illinois, yes, criminalizing local officials who vote for right to work zones. S: Well uh the the unions are so good for workers that they have to have to threaten to put people in jail who don’t join the union. A: Ultimate thuggery D: Uh this uh that about sums it. Alright, Steve Moore, Heritage Foundation Senior Economist, CNN Economist, Wall Street Journal Economist. Steve, thanks for joining us as always. Appreciate it. S: I’m just so glad I know two people in Chicago, Dan and Amy who don’t revile me. D: Yes, exactly. We’re starting a movement. S: Take care, bye.