we are taking the next step of delivering americans from our broken tax code. >> this is a once in a generation opportunity. >> behind republicans's framework, billionaires first tax plan is found. >> there was so much need here in puerto rico. people are going hungry. they are going thirsty. >> it is a humanitarian crisis. >> "playboy" founder hugh hefner

died of natural causes, 91 years old on. >> this is "new day" with chris cuomo and alyson camerota. >> we will talk more about hugh hefner coming up. obviously, when a legend, changed the culture in some ways. >> in a lot more than the obvious ways that people think. we'll get into it. >> good morning, everyone. welcome to your "new day". president trump kicking off an ambitious plan to cut taxes. it is light on key details, like how to pay for it. the president said his plan will help the lower classes. but economic analysts say the wealthy stand to gain the most. >> three cabinet members under fire for spending tax payer dollars on private jets when cheaper options were easy if they wanted to go that route. so, yes, of course you're going to pick up the tab. that's why we care, right? whatever they do, you pay for it

while they're in government. president trump is defending his criticism of nfl players as well. the new surprising reasoning that he is giving for his continued attacks. let's begin with joe johns live at the white house. joe? >> reporter: chris, the white house has had just a brutal week and so has the president. he's come under criticism for his response to the hurricanes and the caribbean. his attempt to revamp health care has gone down to defeat. and he backed a losing candidate in the alabama senate race. now they're hoping this tax plan will be a crowd pleaser that helps them turn the page. >> there has never been tax cuts like we are talking about.

>> reporter: president trump kicking back, unveiling a nine-page framework that includes reducing the number of tax brackets from seven to three, doubling the standard deduction, reducing the corporate tax rate from 35 to 20% creating a new tax rate for pass-through businesses and eliminating the alternative minimum tax and estate tax. the committee for a responsible federal budget estimates they will add $2.2 trillion to the deficit. >> this is a revolutionary change and the biggest winners will be the everyday american workers. >> reporter: mr. trump attempting to cast the proposal as a boom for the middleclass. but democrats say it is wealthy americans who will benefit the most. >> behind the deceptive math, the american people find billionaires first tax plan that fails the middle class. >> reporter: mr. trump also insisting that republicans have the votes to repeal and replace obamacare despite the fact that the co-author of the latest bill refutes that.

the president says congress fell short because of republican senator thad cochran's absence. >> we have the votes to get it done. you can't do it when somebody is in the hospital. >> reporter: the senator tweeting he is not hospitalized but recovering from a medical ailment. all of this as several controversies consume the white house. facing questions about the response to puerto rico and the virgin islands. as three of the president's cabinet secretaries are under fire for spending taxpayer dollars on costly flights. and scolding tom price over his repeated use of private planes, for going cheaper commercial options. >> i am going to look at it. i'm not happy about it, and i let him know it. >> reporter: a white house official says price's job is safe for now. and the president continues to sound off on the nfl not doing anything to stop players who kneel during the national anthem. >> in my opinion, the nfl has to

change. or you know what's going to happen, that businesis going to go to hell. >> reporter: president trump also has a number of meetings on top today, including one with acting homeland security secretary. very likely to talk about the situation in the caribbean, puerto rico, and the virgin islands. also, senator lindsey graham of south carolina says he does expect to sit down with the president to talk about the next steps on health care. chris and alyson? >> joe, thank you very much. let's discuss all of this with our political panel. well, i think the president has an ambitious road to get it done as large tax reform. there is every bit of potential for a tax cut. but, you know, i've been through covering these battles before and they break down along similar line, which is who benefits, how do you pay for it and does it meet the promise of

rising economic growth. economists have talked a lot about how hard it is to effect economic growth in this country, to get it to be more robust at the very modest level it's at right now. and the president's defenders, the president himself, said this will unleash a new round of economic growth because businesses will be free to start spending and investing more money. businesses have already been making a lot of profit over the past, you know, many years now. the stock market is doing so well. shareholders are doing so well. so it becomes a pitched ideological battle whether it's fair and whether it will be achievable. having said all of that, i think this is the one sweet spot for a conservative populist president to be right with the conservative core of his party to get something done. >> look, we're going to hear there are not a lot of details, john. got to wait for the details.

but what they have put out in terms of details flies in the face of the president and what he said he was going to do with this. all of this reporting he doesn't care if he takes a bite out of the behind of the wealthy. he is okay doing that. he will take that on. they don't even give small business the same tax credit they give big businesses, which is odd when small business is the base of our economy. getting rid of the amt. getting rid of the estate tax. those are things that will help the wealthy and not the middleclass. why even put out a bones structure of this plan that doesn't have ideas for the middleclass? >> this reflects republican consensus. tax cuts go to the wealthy. but does it really reflect the president's principals and is he going to fight for the things he said in private and public. he said that he wanted to focus on the middleclass, not cut

taxes for the wealthy. this outline is exacerbating income in equality. is it going to balloon the deficit by $2.2 trillion? are they going to close loopholes? we need tax simple fictn. right now this is a play to the base document. is the president going to shake things up and readjust the coalition. if he does, he might get an unexpected win. >> let's look at the graphic, gregory, that explains how they are trying to simplify it. it goes from the seven different current tax rates and similar guys it to 35%, 25%, 12%. the wealthiest are paying 39.6%. they would pay 35%. so they get a break. the poorest, who are paying 10%,

hop up to 12%. so how does that work? >> something i read this morning sticks with me. the idea of flattening the curve. if wealthiest americans pay the largest share of taxes, they tend to bring that down. but the ones paying less taxes remain more stable. doubling the personal exemption. and eliminating other deductions that might offset the decrease in the rate for wealthiest americans. i haven't seen the details in terms of how it would actually work out for those in the highest tax brackets. i think ultimately where the fight -- because we'll automatically revert to this helps the rich and not the middleclass. republicans pushing for tax cuts over the decades, which is that it won't balloon the deficit. the opposite has proven to be true. and that it will lead to economic growth. you know, look, there is a --

you talked to republicans who run businesses. they will tell you they feel that there has been awe war on business within the obama administration in terms of regulation and corporate tax rates. even obama administration talked about lowering corporate tack rates. the animal spirits inpora cor america in terms of investmt and job creation is something that could be freed up with corporate tax rates. it is is all going to be part of the fight. >> if you close loopholes. the effective rate is nowhere near 35% rate that gets discussed. that's where this breaks down. you know, we had a surplus in this country at the end of the clinton administration. that was squandered in part but not a significant part by the bush tax cuts that occurred. so they can go doctor the president can be ambitious about this and do things that need to be done. get some of the overseas money. invest in infrastructure.

and in the process could follow through on some of the promises. >> this is his plan. this isn't what the republican congress brought to his desk. you think he would have frontloaded it with promises that were in his campaign. it's not in this, so that's just odd. the controversy that is bubbling up right now about what kind of stewards of the people's money we are seeing these cabinet officials. tom price gets the biggest capital h for hypocrisy because he was always such a pork chaser. he was taking flights on the public dime that he didn't need to. what impresses you most about this situation? is it what they did or how trump is responding saying, yeah, i'm open to firing the secretary. >> this is where the transparency of the president sometimes blows you away. he's not taking a lot of time to, you know, think about this and reflect privately. he's got a very openly seeing, yeah, we'll see. it sounds like he wants to fire

tom price. this is such irresponsible use of tax payer dollars, particularly trying to lead a middle class tax fight over tax cuts and facing criticism about this just benefiting the wealthy. it is irresponsible. and i think, you know, we just should look to what the president has said about it. he doesn't like it. he's personally looking into it. and i suspect we haven't seen the last of this in terms of how angry he was about it. >> let's look at what tom price said about this. >> would you like to? >> yes, please. >> thank you very much. that was a good tease. let's go back to 2010 when he r5eu8d against nancy pelosi for flying in a private plane. >> i want to say to the speaker, don't you fly over our country in our luxury jet and lecture us on what it means to be american. >> finish the joke. >> let me do it. >> there it is.

>> that's the key thing. price is railing against this when he's in congress and in opposition and when he's in power, all of a sudden he's going -- >> it is either 11 trips he's taken or 24 if you look at the hhs documents or trust his word. anyway, he took a private plane from d.c. to philadelphia. you can drive faster than waiting for your private plane. >> you're halfway there driving to dulles to take the private plane. >> i don't think price will get the award. obviously that's a blast from the past. i don't think he gets the most provocative sound bite. the president won't let the nfl go because he thinks it's good for them. be clear about that. here's what he said this morning defending it and making it worse. >> what prompted that in alabama? >> well, i have so many friends that are owners. and they're in the box. i have spoken to a couple of them. they say we are in a situation where we have to do something.

i think they're afraid of their players if you want to know the truth. and i think it's disgraceful. they've got to be tough and they've got to be smart because you look at the ratings. the ratings have gone way down. the stadiums -- i've seen a couple of stadiums the last few weeks, there are a lot of empty seats. >> look, we can talk about the ratings all day and go after the president for how accurate that is. but let's talk about it in a different way, david, if you might. they're his friends, so he put them in a box. it has a big "t" on it. it is not bubbling up without his help. and they're afraid of their players. i know it is provacative to put it this way. control your dog is what he seems to be saying to the owners. i don't know how else to take it. we know what this is about. this is about their feelings about racial oppression and policing. it is not to disrespect the flag. how do we know? to a man they say that. i want to draw attention.

this is my way to do it. so when he says they're afraid of their players, they're in a box, how else are you supposed to take that? >> afraid of the action. afraid of the players in terms of what they can do publicly. look, i don't dispute. you know, you're talking about white owners, many of them billionaires. majority, 75% african-american league. what i don't like about all of this, the president is setting this up as some kind of test of their americanness, of their patriotism. there is a legitimate disagreement to be had about whether this is an appropriate way to protest. it should not be a test of whether you're legitimately american or have some standing. >> it is a peaceful protest that should be covered by the first amendment. they cannot resist the opportunity to ignite.

this is someone reminded who should be a tv show host not someone consistent with being the president. >> john, david, thank you very much for these spirited conversations. another social provovateur. "playboy" founder hugh hefner died of natural causes at the ripe old age of 91. he certainly helped spark the sexual revolution of the '60s. celebrities are paying truck beauty to the hef. miguel marquez is live at the "playboy" mansion in los angeles. he sold is it for 100 million in cool cash. but the deal that he got to live in it for the rest of his life. >> reporter: prestaoeciselpreci. his neighbor is who he told it to, heir to the hostess

business. >> a lot of twinkies. >> reporter: some people have been dropping off flowers when news spread through hollywood last night. interestingly enough, for as controversial a figure as he was, this is somebody who women still said, oh, i've never been to the "playboy" mansion. i'm so sorry i missed the party there. he made smoking jack sets and silk pajamas cool. he brought the word centerfold into the lexicon dictionary. 60 years as editor-in-chief. the magazine born in 1953 on a kitchen table for 600 bucks that he put in and a few thousand more that he raised. marilyn monroe on the front cover. and he turned it into an enormous he especially peyer. i want to read you a little bit of what he wrote in that first magazine. we like our apartment. we like mixing up cocktails,

hors d'oeuvres, putting a little music on the phonograph, and bring talk about picasso and sex. he left quite a legacy. people are going to have a lot to say certainly about hugh hefner in the hours ahead. alyson. >> look, he lived life on his own terms. i think we can say that. some of what went on there many categorize as gross. but he loved it. and going to work in your pajamas, who is against that? miguel, thank you very much. miguel was going to agree with me right there. i saw that. cnn is of course all over puerto rico covering the destruction of hurricane maria. up next, our bill weir will take us to a tourist destination, an island that has been devastated. you need to see what's been going on there. we'll be right back.

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to help control damaging inflammation and is clinically proven to begin helping many patients achieve both symptom relief as well as remission. infusion and serious allergic reactions can happen during or after treatment. entyvio may increase risk of infection, which can be serious. while not reported with entyvio, pml, a rare, serious brain infection caused by a virus may be possible. tell your doctor if you have an infection, experience frequent infections, or have flu-like symptoms, or sores. liver problems can occur with entyvio. if your uc or crohn's medication isn't working for you, ask your gastroenterologist about entyvio. entyvio. relief and remission within reach. we have a cnn exclusive for you. a look at devastation in viegas.

bill weir joins us live from san juan. what did you see, bill? >> reporter: this is the roughest i've seen in half a week here. just for perspective, it is an island off an island. as bad as it is is here, it's worse there. for years it was a u.s. navy bombing range until george w. bush told them to move and clean all the munitions up. now it is a playground for the rich and famous and home to 10,000 natives who work there and support the tourist economy. for the last week, no one knew anything about their fate. they were in this black hole of information. so luckily we found an angel with a small cessna to take us on a journey into that heart of darkness. we liftoff from san juan, a route steven has flown hundreds of times. but this is the scariest sky traffic he's ever seen.

>> you could sense the tension in the air traffic controller's voice? >> absolutely. >> the airport versus no working radar. so every slow cessna and 6th fast jet is going by sight. >> we cross over resorts all shattered by maria. eight miles later, touchdown amid shattered airplanes. some of the first outsiders to reach vie aques. the entire island ravaged from the swanky w hotel to the boats of mosquito bay. >> that is the cabin of a catamaran called the naughty mermaid. if it looks a little bit odd, it's because it's flipped

upside-down. by what the locals say were 200-mile-per-hour winds. >> three, two, one. >> reporter: in happier times, the glow in the dark plankton helps lure the tourist to drive the economy. there is no salvaging the upcoming high season. but that is a worry for later. right now is about survival. >> we're out of fun. we're running out of food and water. >> reporter: that is the kind of heartbreaking, soul draining scene that is getting played out again as people look at her cry. she gets on a sat phone for the first time. oh, my god. crushes your soul to watch that. this is the line, a two-hour line for folks waiting to give proof of life to a wife or a husband or a father. it's rough.

how does that feel? can i see your eyes? can you remove your sunglasses for me? >> go back and tell them we need help. tell the president everybody needs help here. >> pretty much lost everything. >> the first flight. we had a lot of folks stepping up and contributing. we decided the most important thing was to establish communications. we weren't hearing from anybody. >> when is help coming? there are a lot of people promise to go bring supplies, but it hasn't arrived yet the deputy mayor tells me. red tape seems to be their biggest enemy. >> the relief efforts and aid may be coming.

we are trying to get those coordinations, those clearances, the orders to be issued so we can get in. the island is feeling this type of pressure. and tensions are running high. >> do you feel american at moments like this? do you feel neglected in moments like this? somewhere in between? >> we are u.s. citizens. it has been 100 years since we were made u.s. citizens. it should mean something. right now we are just an island, and that shouldn't be. >> for years the u.s. navy used this island for target practice until the locals got fed up. what better way to make it up to them by storming the beaches with aid instead of bombs. >> this meets and requires someone who knows how to district goods in the middle of almost a war zone. >> so you are making a plea for martial law? >> i am making a plea for martial law, for having thraoerbthree,

four days to district water, food. six days after everything is just a horrible scenario in puerto rico. >> i need to tell my mom i'm okay. >> brittany moved here from brooklyn. she is helpless because she has no cash in a cash-only society. >> thank you. >> i have no money. i have no cash and they won't let us use our debit cards. >> here's a few bucks. >> this is the only help. private citizens have come through for us, and no one else really has. >> reporter: if it wasn't for the mainland americans to get the sat phones down, they would

be in a worse state right now. what's even more frustrating, i ran into four sailors from the amphibious readiness group, they said they are desperate for diesel. i said how long will this take? and the young sailor said that is above my pay grade. so someone needs to make the call to get people supplies. today that place could completely turn. society is unraveling. we are at the point now, chris and alyson, where the line between looting and survival disappears even for the most decent people out there. the senator tweeted this morning, they are stealing diesel, generators. they robbed the morgues's electrical parts. no one recovers. i can't stress enough, these are 10,000 americans sitting on this rock waiting, hoping that this

is the day help comes. >> bill, you are sounding the alarm. and obviously you're showing us all of these stories of desperation. you showed us the story of the man a couple of days ago who had one bottle of insulin left. we're happy to report because of your reporting, awe veterans group was able to find him and get him medication. you are sounding the alarm. and hopefully the right people and officials are listening. thank you. >> reporter: you bet. >> all right. there are fears that as you are hearing from bill that this situation is going to turn from very bad to worse. sit going to hospital in the streets and it's also going to happen in the hospitals. power is out. hospitals are very fuel dependent on run their machines. if they don't have power from the grid, they need generators themselves. that means generator ss and diesel. dr. sanjay gupta is there.

you have seen great despair all over on the world. what makes this unusual is that this is america. these are americans. this is an american territory. it is 1,000 miles away, but well within reach of all the might the u.s. can bring to bear. what did you find, my friend? >> well, if there was a theme it is just this theme of unknown. it is exactly as you would said. some sort of consistent relief or at least knowing things were coming. the pediatric hospital did get some fuel. but they are told they have enough fuel for three days. then they're just not sure. that's not the way you can possibly run a hospital. one of the clinics that is an hour outside of san juan, they say they got six hours of fuel left. they have an emergency room. they're trying to take care of patients. it is impossible to do to basically try to plan anything when you have that little fuel. so sit a continuous unknown for

the medical folks out here, it is particularly challenging as a result. >> all right. we're just watching what's happening there, sanjay. you're so tied to the scenes of need. and there's a helplessness here. we know it's real on the ground. but what's being more difficult to understand is why suspect it changing? what is your understanding of why it's only three days of fuel, why there hasn't been more of an incursion of relief efforts in the places that seem to need it? what is this about? >> reporter: i think there are several things going on in that regard. one is you heard bill weir's reporting. in many plates it's a question of distribution. you may have certain supplies on the ground, life-saving supplies even. but simply getting it to the people who need it is part of the difficulty here. there's something else.

this is a little bit surprising. that is in some of these far away clinics, i expected to see lines and lines of patients at these clinics, people actually getting to the clinics trying to get care. you're just not seeing that yet. in some ways it is another problem of distribution. the patients are there certainly. you have seen what happened with this island. they are still dusting themselves off and dealing with the fact that they have lost everything. they vice president been able to take care of themselves. the numbers are likely to grow. people start to filter in. but they are also starting to take theupgts out of the hospitals, out of the clinics, and go into these communities directly on foot with supplies to tend to people just where they are. that's part of the nature of what's going on here. >> a lot of people can't get anywhere because they don't have any cagas. they can't drive anywhere much there is a whole cascade of problems. the issue that's getting larger and larger, why isn't it

changing faster with if these are americans. sanjay, thank you very much. we need you there. thank you for being there. alyson? do you use twitter? hmm. chances are you're the victim of fake news. a new study looked at 22 million tweets and found out how many of them are fake news. and one of the researchers is going to join us with her conclusion next. find discounts,, i hele like paperless, multi-car, and safe driver, that help them save on their car insurance. any questions? -yeah. -how do you go to the bathroom? great. any insurance-related questions? -mm-hmm. -do you have a girlfriend? uh, i'm actually focusing on my career right now, saving people nearly $600 when they switch, so... where's your belly button? [ sighs ] i've got to start booking better gigs.

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lowers look at the level of misinformation posted on twitter during the week of the 2016 presidential election. the oxford study found on average the amount of false information in swing states was higher when compared to uncontested states. joining us now with all the conclusions is one of the researchers behind that support. samantha bradshaw. what a fascinating study that you and your colleagues did. this is the first time that a study analyzed the ratio between what we call fake news, meaning conspiracy theories and fiction, versus real news during that

pivotal time period of the presidential election. what did you find? >> yeah, that's right. so we started the study back in the beginning of the year in january looking at one swing state in particular, which was michigan. we wanted to see what users are social media were sharing as news and information in the ten days leading up to the election. we found that the amount of junk news and professionally produced news was being shared at a one to one ratio. >> you call it junk news. >> yeah. >> and you call it professional news. so not fake news, real news. why do you call it junk news instead of fake news? >> we call it junk news because we are trying to capture the wide range of content that is conspiracy, that is hyper partisan and that's also false and includes misleading or made up. >> we have a graphic to illustrate what your findings are. what you call professional news

content, meaning cnn, real news, 20%. that's what users were sharing. 20%. professional political content, 10%. polarizing and conspiracy content, meaning fake news, junk news, 20%. other political news and information, 13%. and then other, 36%. so help us parse all of this. >> yes, okay. the professional news content would be content coming from the "new york times", from cnn, from news organizations that have some level of professionalism to how they create the news stories. >> rules, guidelines. >> exactly. >> things you must adhere to. >> and professional standards. >> it is just shocking how little a piece of the pie that is. it's so troubling how little real information people were getting. let me just show people, the swing states that you looked at.

the red is where the heat was where they were shared the most. what did you find? >> exactly. we found in the swing states there was a higher concentration of this highly polarizing content. so the junk news, the links from russian content and wikileaks. >> so, phil, on a larger scale, is that a coincidence that in the swing states this was pushed out the most? or is this what congress is trying to figure out, that somehow the russians knew where to target with the fake news? >> i don't think we should draw a conclusion on that yet. when i listen to the story and when i read it last night, i'm looking at the swing states and saying is that because people were targeting those states, or is that because people were so engaged in the debate about the election because they knew the margin of victory would be so small that there was more sharing of information. i'll tell you when i look at this, the way we characterize

it, they will see it through a political lens, as the congress will. democrats will say, look, this is people involved in the russia campaign influencing in favor against hillary clinton. republicans will say, no, this is overblown. let me give you a quick point. going into the 21st century, this isn't about elections. it is influencing the way americans think. if you're a right wing activist, you will do this kind of stuff about immigration and europe. if you're a chinese security service, you will poison the views of asians about american influence in asia. if you're someone who wants to do business in latin america, you might attack an american company. this is how people use sources of information in the 21st century, not just about an election campaign. >> you're so right. people need to know their source. there needs to be news literacy happening here. did you look at 22 million tweets? >> yes.

we had a sample of 22 million tweets. not everyone was sharing links to outside sources of information. >> but did you find twitter was somehow more prone to this sort of misinformation than elsewhere? >> well, twitter is one of the easiest platforms that researchers like i can work with because we have access to their streaming api. it gives us a little peek into what people are sharing. platforms such as facebook don't allow the same kind of transparency and access into their platforms. >> is right. we have learned that woefully late. samantha, what's your conclusion? what are people to take away from this amount of fake news, false information, misinformation conspiracy? >> i think it's a little troubling. if there's bad quality information, conspiratorial information being shared, so many people use these platforms to obtain political news and

information about politics that shape their political identities and impact their voting behavior. so if they are accessing bad quality news and information, it's going to effect the quality of our democracy. >> absolutely. i mean, phil, just one final note on this. cnn has exclusive reporting that they found facebook put out these fake ads from russian troll farms, not even information, they appeared, people pretending to be supporters of black lives matter and imbedding in it threatening language as though black lives matter were threatening to their neighbor. when i hear people are getting their information from facebook or twitter, it sends a shiver in me. >> the message should be we are

not attacking the people like cebook who put this out in the last election. the message should be how can the u.s. government and congress support silicon valley to get this out. don't put those guys on the spot. figure out how to help them. >> thank you for sharing all of your research with us. fascinating. let's stay with the theme of finding a way forward and get a little deeper what we know about this new tax plan. cutting taxes seems to be the headline. how, for whom, unclear. christine romans joins us now at the magic wall. look, tax reform is one thing. tax cuts something else. what are we seeing? >> there are opening arguments from the president. a lot of negotiation and congress ultimately writes the tax code. this is reform, real tax reform. it overhauls to make it fair, more efficient. it boosts economic growth. this plan is a blueprint for tax

reform. it does all of those things. when you look at how it simplifies things, it cuts the tax brackets, chris, 12%, 25%, top rate 35%. that is seven brackets to go down into three. one thing that is interesting about this blueprint i found, it allows lawmakers to add a fourth bracket above 35% later on that could address criticisms this predominantly helps the rich ople. >> the bottom rate goes from 10% to 12%. >> the white house argues is a doubling of a standard deduction. so a lot of people at the low end won't have to pay taxes at all. $12,000 for individuals, 24,000 for married couples. you could look at a high tax state like new york, new jersey, california, at a family with maybe five kids and say, wait a minute, this could be tough for

middleclass with more kids without the exemption. the white house makes it interest about how they would get rid of the other deductions. state taxes would go away. amt would go away, predominantly for rich people. and estate tax. >> give me one of those color things. >> there you go. >> how do these two help the middleclass? >> they don't. you can argue they don't. they do make some cases for mid-western farmers who may want to pass down their money. this is $200,000 to a million in income. >> trump said i don't care about offending these people. remember on the campaign trail? he said i know these guys. i know the fat cats in new york. they need to pay more. i don't care. they can't hurt me. i don't need their money. you frontloaded. >> these are things for donald

trump and people who make a lot of money. it is good for entrepreneurs. the 25% passthrough for businesses. mortgage interest deduction, charitable giving, retirement, 401(k) and the like. and increases the child tax credit. the white house will argue that the child tax credit helps middleclass families overall. this is the business i was telling you about. 35% to 20%. current small business rate, the passthrough, 25% there. this would be good for small businesses. >> this one needs one of these. i want to write one more time. i want to do this one. put an asterisk on this. it is all about the details. the rate is already low because of the loopholes businesses get. what are they going to do with the loopholes and why do small businesses not get the same treatment as big businesses? they are the engine of the economy. >> they pay 17% to 19%. now the devil is in the details.

>> i thought i won with the asterisk but you had real numbers. you won. >> you get the last word, alyson. >> he loves the magic wall. >> a.c.! >> who are the winners of the president's tax plan? our panel will debate all of that next. kevin, meet your father. kevin kevin kevin kevin kevin kevin kevin kevin kevin kevin trusted advice for life. kevin, how's your mom? life well planned. see what a raymond james financial advisor can do for you.

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president trump hails his tax plan as a big win for the middle class. that was the promise. critics say not so fast. let's debate what we know so far. yet. ber the details aren'tut we have a starting point. it. let's bring in two very good minds. steven moore. cnn senior economics analyst and former economic adviser for the trump campaign and anthony chan, managing director and chief economist for chase.

gentlemen, good to have you both. steve, the promise was from the president on the campaign trail, i don't care about the fat cats. i don't need their money. they're going pay more whether they like it or not and that's what is going to happen because i'm going to help the middle class. hurray, we heard from all over the country. how does this plan do that. >> i want to commend you and christine. you did a great job of summarizing this plan in a fair and balanced way. >> oh butter me on steven more. although, chan if you wan to say something nice go ahead. >> a couple things. you made the point about or you or christine made the point about the effective rate of some of these companies only like 125, 16, 17%. a lot of people saying why do they need a tax cut. i would make a couple points to you. one thing we want to do i worked with then candidate trump on putting the plan together originally is we wanted to get rid of a lot of loopholes and deductions. it's true, some companies almost

pay no corporate tax and no business tax. others are paying the 35% rate. we want to make a fair system. accidentally, i was looking at some of the polling on how people think about our tax system and one word that comes up so often by average americans is rigged. they think the system is rigged toward the politically powerful and lobbyist and a lot of ways it is. our goal is lower rates for everybody, butverybody is going to pay that tax. the high income people are going to get a little bit of a lower rate. they're going to lose a lot of loopholes and special interest power. same thing with corporations. rate is 20%, but everybody is going to pay it. >> anthony, how do you see it. >> the way i see it is huge tax cut on the individual side. we're talking about 3 bnt $2 trillion worth of tax cuts on the corporate side. it's about $100 billion of tax cut for every 1%. looking at close to $1.5

trillion. if you ask me is this a middle income tax cut. i would say no, because really people at the top are getting the lion share of the benefits. when you look at estate tax being eliminated. that hits 10.2% of all tax return. i can assure you sherlock holmes cannot find the benefit. with regard to the corporate tax, who is it going to benefit. large s&p 500 companies. that's going to boost corporate profits somewhere between 8-9%. is it going to cut middle income tax. that's the only problem i have. the way you label it. is it a boost for the economy. i would agree with steven it does boost economic growth because of tax cuts, but when you look rat over time how are you going pay for these things, this is only going to last ten years. it's going to sun set. there's no way you can continue to run these deficits. even nonpartisan groups one

nonpartisan organization estimated this will boost the deficit over the next ten years by $2.2 trillion. it's very difficult to get some of the house republicans to agree to that especially the super conservative ones to allow that kind of deficit. there's going to be some negotiation. i don't think this plan the way it's being proposed is going to be the final tax plan. >> let me respond. i think anthony makes good points. the one thing we do agree on is this will give a boost to the economy. the polling i was referring to, most americans think a tax cut would be good for the economy. >> can i stop you for one second. i'm going unite you two in your disagreement with me. i do not accept it as a fact that a tax cut will necessarily build the economy. i want to flush that out a little bit here. i'm not saying people don't ink abo it. we get told it all the time. why wouldn't that think it. whether you look at studies, whether you look what happened under reagan, it's not a

guarantee when you free up rich people and give them more money: by the way i would benefit from that. everybody else benefits. we didn't see it under reagan, we didn't see it with the deficit. we didn't see it with income or wages going up for middle class people. why would we see it now. why is giving rich people and big businesses more money the way to grow the economy, especially during this season. this isn't a recessionary period where we were with bush and reagan. we're already doing well. why would it necessarily boost the economy to cut taxes? >> there's a lot there, chris, i will say this. you and i must be talking about different countries if you don't think the reagan tax cut worked. we saw the biggest boom in american history. saw jie can'tic increase and just politically it must have worked. ronald reagan only won 41 states.

after. >> the other point i want to make about this issue of who benefits. the interesting thing is the congressional budget office you would agree is not exactly a friendly to conservative. not lately. look at the study they do. it's on the website. they find two-thirds of the benefits from cutting the business tax rates goes to workers. because it's very simple. when businesses do better, when they have more money. when they have more profit, what do they do? they more workers. e company. pay themmore. this week our goal is to help workers have more jobs and more choices. >> i get the concept. anthony, let me bounce it back to you. you can double down on stevens. >> i'm not going to double down. i just want to say that during the reagan administration, we

went from unemployment rate of 7.5 to 10.8. there was a lot more slack in the economy. today we have 4.4%. i'm in agreement it will boost the economy, but it's not going to boost the economy as much as the reagan administration. >> i probably agree with that gl we don't have enough slack in the economy to boost the economy. >> you guys are the experts. i bring you on because i need yore brain on these situations. we have businesses holding unprecedented amounts of cash. so if you give them more of their money back, who is to say, anthony, they're going to hire more people or pay more people than they are already. if one thing has not echoed, the unprecedented expansion of wealth in this country, it's wages. they aren't going up on a relative basis. you give businesses more money, they're already holding an unprecedented amount of cash. where's the guarantee it passes down to the working class. >> chris, one of the things i did a study loo