and on the health care act. thank you for being with us. rep. brady: thank you. >> let me introduce the two reporters. rachel is returning to newsmakers this week. and also, from the wall street journal, making a return. richard, you are up first. >> you are meeting with the house ways and means republicans after the rest of congress had gone home. what did you accomplish? what did you come out of that you didn't have going in? we had several very good days. america voted for change. we have a new president to wants to make america competitive again. tax reform is key to that. so we focused a whole day on the bill to promote the tax code. focusing on how to create more jobs here in america. how to eliminate any incentive

for american companies to move headquarters or jobs overseas. we want a tax code where the best place to sell to america and the world is from right here at home in the united states. and so we had he decision points there. our point is that we will be ready for the new president on his tax reform initiative. richard: when you had key decision points, what were they? what did you come out of that with? on taxes? rep. brady: major ones were to review the listing we have been doing since june. we unveiled that at the end of the month. we had hundreds of townhall meeting through the country. i can't tell you how many meetings we had with this is meetings and business leaders throughout the country. input from that. we make sure we have the most pro-growth and oldest tax

reform. we also focus on certain areas like insurance, financial services, small businesses. making sure that we have the tax revisions right. going forward. would like to jump in. i would like to ask how you are reconciling the house republican tax blueprint with what donald trump wants to do? there is a bit of a difference. one of them being the corporate tax rate. some below talked about a 15% tax rate. what do you think it will come down for that. and why? why are you guys looking at that specifically? rep. brady: the key point there is that it is a little bit different and not much. the trump and the house republican tax plan began 80% the same. we have had great discussions with the trump transition team, going forward and reaching common ground on a lot of areas.

we are interested in getting down our rates for our job traders. whether it is the big companies or the small mom and pop stores. so the lowest we can go, we want to achieve that. as we do that, we want to redesign the code, because right now, america is competing with one hand tied behind our backs. frankly. we have an advantage for foreign products over made in america products. we have the big incentive to move companies overseas. so as part of our discussions, we are making sure we level the playing field here in america. and wherever the products are made and whoever makes them, we will have real competition here in america. we want to make sure this is the best place, the 21st century magnet, for the next companies. rachael: is there any concern that -- a revenue neutral tax form? the don't want to lose money or

add to the debt, going forward. is there a concern that if you go to that, the government will lose money and it will cost the country more? rep. brady: one of our goals, and we have designed this to breakeven within the budget, economic counting on growth. making economic growth going forward. to make changes, you have to do trade-offs. you have to do something else and pull punches on something else that is equally progrowth. with all waiting that the tax reform efforts. and we have great discussions with the trump team. i've no doubt that at the end of the day we will have the lowest rates in modern history. so that our businesses can compete and win in the world and especially at home. richard: so the way you are trying to do this, encourage aoducts made in america is

novel thing for the u.s. but not so novel for the rest of the world. as is his are trying to after heads around this. you have big retailers and oil , theyrs and industries are really concerned about this proposal. calm themu trying to down? conversation? and was one of the decisions that you made this week to press ahead with that idea? despite the concerns from the business world? we have made a strong case that for america to compete and win again, we need to change the way we tax. , theyl of our competitors take the taxes off the goods and services coming our direction, so that gives them the advantage over us here in america. , sending our products around the world, and so today, we lose in america and around the world. this is the key part of our tax

code. it is going to stay. and i think because tax reform impacts everyone differently and industries differently, we want to listen to, and find solutions, with those who rely a lot on imported goods coming into america, as we think imports and exports are both important to the economy. but we will insist that they be taxed equally here in america. -- when i talky to economists, they say i just because the dollar will get a lock stronger which would make imported goods cheaper. and so importers shouldn't be importing but they are. the rising dollar has all sorts of things. an update in the wall street journal this week talked about the global turmoil from the rise in the dollar that is already happened. and to the extent that american's own assets outside the u.s., they might be hurt.

how are you thinking about the ripple effect, globally, from what you are thinking about doing? rep. brady: making america more impacttive does have an around the world. making sure that they can compete and win here does make a difference. and so industries will have to adjust. the we know is that stability has been established and curbed more than 100 times around the world. currencies have adjusted. because others want to compete in these markets. so we know that will occur. but if our local industries are concerned about that transition, ring the solutions. we are listening and we want a tax code that is built for growth across this country. and we want to listen to those solutions. so our door is open. and we think it is important for everyone to understand that we cannot leave in place any tax policies.

companies toour move their operations overseas just to sell back to the united states? that won't stay. you have referenced your meeting with the transition team, can you tell us who the key players are around the table? rep. brady: there are a number of them. they are moving quickly on a lot of fronts from tax reform and health care and trade. and on infrastructure, as well. so we're intersecting with them in a number of areas. and there is a list of key people and they do continue to grow as they name their key cabinet officials. so rather than go through the list, let me just assure you constant rigger contacts and i am really encouraged by the direction that we are all going together in. susan: one of the names that is in the rumor mill this morning is the appointment of larry come low, who people will recognize

from the tv commentating work. would you welcome his appointment in that role? that would be a grand slam appointment, in my view. he has experience in administration, with the federal reserve, his knowledge of free markets and principles on tax reform and on growth and on a sound dollar, i cannot think of a better choice for this new administration. so i would be very excited by that nomination. you,el: i wanted to ask sincedonald trump talking the election about tariffs on american companies who move jobs a 45%as, potentially tariff. only talk about tax reform, we hear republicans talking about .ore of an incentives tariff

what do you think about the idea of a terrorist? this ashink we will see part of the tax reform? what are your thoughts? it is going right at the heart of what american knows. the way things are going today, we cannot just compete and win. we are competing with one hand tied up behind our back. i am convinced that going in that direction, by fixing this broken tax that goes deep to the heart of it and puts us on a level playing field, and where companies will be disadvantaged when they move their operations america,in away from if they want to sell in the u.s. and around the world, we will work closely with them on all of these issues. thes our goal is exactly same. to strengthen the economy. let us compete and win anywhere in the world. rachael: the goal is the same

but that specific pitch, a lot of you would say that is not a , consistingideology of traditional house. rep. brady: there are several ways to tackle this issue. and i suspect that if we are not successful in changing this rogue and tax code, if we are not successful in growing more jobs here and around the world, there will be more talks of tariffs in this area. let's gought is, straight to the heart of the problem. fixing the broken tax code. do you expect this plan to roll forward? when do we plan to see pieces of this bill or the whole bill? of thisave come out retreat, what is your calendar for 2017? rep. brady: a lot of it ties to

the first 100 days. so until we see that timing, i can't answer for sure. what we are doing is working through the holidays, continuing to put elements together. we continue to listen to the industry in a number of these areas because we think we are making able change. for business, we are moving from an income tax with things are produced and where profits are produced. dramatically more pro-growth but it is a change. so we listen carefully to the industry. i expect a lot of work to be done. the bottom line is, we will be ready for president-elect trump on tax reform. we have health care to tackle. who is up first? us a littlebe tell bit about what you think -- how

will republicans replace obamacare? i know there are a lot of things that are in flux right now but what are the main things you guys are going to change? what can we expect this to look like? rep. brady: thank you for asking that. this usually gets lost in the question and the big picture. we know that obamacare isn't working. premiums are accelerating. few are accelerating. fewer and fewer choices with lower doctors. this is not fixable. so what we are recommending is bureaucracy, the woolly mammoths of obamacare, with the concept of a health care backpack. the freedom for america's to choose a plan that can travel with them through their life. from job to job and state to state. staying at home as they want to start a small business if they want to raise a family and even into retirement. the health care backpack means that in addition to choosing a plan that is right for you, this

can travel with you. and you can change to make it affect your needs. an easy access to health savings account. and control for the american medical records. so you could choose to maybe give that to your doctor or your and what that health care backpack approach requires is rest to knock down a lot of silos. focus, a laser focus, on what families and local businesses need. it is a big change from where obamacare is today. do you think it will be like a tax credit? the 20 million americans who are on obamacare, some of them are very concerned

about losing their health coverage. what you say to them? rep. brady: let's start to the second one. i can should -- i can assure that there will be plenty of time and opportunities to choose a plan that is right for them. under the health care backpack concept. , theu know, obamacare plans don't end with the new president. the plan will continue. and as we outline our new options and choices that americans will get, there will be plenty of time to make those choices. aware know is that americans can't continue to much longer are these plans that they can't afford with the high out-of-pocket costs. likely, this is not working for them more. you reference even into retirement. are you signaling changes to the medicare policy? rep. brady: overtime, it is

important that we save medicare. will be trust fund bankrupt in 10 years. this is such an important program for 50 million or more americans. ,o we have to take the steps small and large, to save medicare. and over time, we want to make sure that seniors have options for medicare's vantage, and as they have options for their drugs and medicine, which has proven very popular, that they also have options for their overall care as well. so we think, over time, senior should have another choice to carry the health care backpack, the plan that works for them, into their retirement, rather than being forced out of it and just taking what they are given. so yes, we will continue to work on improvements for medicare for the future. set.te has been we saw have a lot of key issues like health care for americans

and tax reform to tackle right off the bat. to look forcontinue solutions and bipartisan solutions. that 20 you said million people will remain on those plans for 2017. insurers right now are trying to decide their plans for 2018 because they have to make decisions in the middle of next year. and beyond. what sort of work will republicans be doing to maintain the exchanges and however long the transition time there is before your new plan comes online? are looking atwe those transitions. we think it is important. ofht now, the market because obamacare is there he unstable. they are fleeing these communities and counties at a record pace. and premiums are accelerating. i expect will be looking at another round as well because it is all based on the obamacare structure. that is the problem. so we are going to look at ways

that we can stabilize the insurance market. look for ways to begin the reform and the replacement process. we are looking at options that signal to america that there is a new way and a much better way to get health care there under obamacare. so we are still working through those issues. and continuing to have that discussion with the trump team as well. richard: as you are doing that, either for the replacement or this time, health care will have a bunch of packages in it, some on high-income households and someone industries. do you expect to keep those taxes in place during this transition? or do they get repealed on day one? once this becomes law? rep. brady: so what i can tell you for timing is that ultimately, the 23 taxes on americans and businesses and the insurance plans are going.

they are a part of the problem. we also know that obamacare is such a mess that it can't be replaced overnight. it can be replaced overnight and do it in a way that gives peace of mind to americans who are using it today. so all of that is a part of our discussions. i know this. election day was about change. obamacare was harming more people than it helps. we have to keep that in mind. americans want a better and more cordial way for their health care. just to be clear, when americans -- when republicans talk about appeal, that applies both to the insurance subsidies and to the funding side? we shouldn't necessarily expect those taxes to go away in 2017? rep. brady: well, it all depends on the final timing of all of

this. making sure that we give americans peace of mind. on this transition. approved bythat was both chambers and readers by the president last year, we put a date of 2018 on it for the end of the taxes. and no decision has been made for this year and going forward. but all of that will be considered as we look for a good, responsible, sure in transition. susan: four minutes left. follow-up onnt to the timeframe. we hear 2-3 years. the last obamacare repeal was two years. that is what it would need to take affect. now we are hearing, potentially for years. so i'm curious. this dependent on? are you guys waiting to get more on insurance updates? is there a concern that how we tol get senate democrats

support a replacement? that could take a long time. why this huge difference between two years or four years? what is it dependent on? rep. brady: thank you for this question. because this is the perfect disconnect between washington and the rest of america. washington is upset. one year, two years, four years -- what comes first and what comes second. but the american people simply want to know, can i get better health care than this. these hugeut of monthly premiums with high out-of-pocket costs? so our focus now is making sure ,e can deliver the most freedom tailored health care plans for americans, and part of that is determining the timing of this. republicans in congress and the trump team are focused on

creating and developing the best solution. so timing will be a part of that. you referenced the need to attract bipartisan votes. and wondering what you will do to attract them? the decision along was that it was not bipartisan. the question is, is it important to democrats? -- there arestions communities like ours, with therece and businesses, are constituents who have found a way to get out of obamacare. so they know that something is wrong. andill be at the door open invite their ideas in on health care. i think there is common ground, going forward, in this area. i hope we can find it. at the end of the day, in very open, transparent and deliver processes, everything obamacare

wasn't, this is the approach that republicans will take. it will be very much different. and we hope that democrats will weigh in. as they are concerned about health care as well. susan: final question. richard: as if you don't have enough to do next year, you have the need to raise the federal deficit at some point during 2017. ?ow are you thinking about that republicans have been resistant during the obamacare administration to raise that limit. how is that going to work? really, to be determined is the answer. in the past, it was just a hostage taken by the president to demand higher spending. the this president, we have opportunity to change the way that washington works. but we can change the way that washington spends. washingtoned -- if were a manufacturing plant, it

would manufacture spending. if we want to manufacturing efficiency and customer service and a balanced budget, you have to retool the plan so what i will be looking for our big changes in the way that budgets work. tackle data day expenses but also to look at the big picture. how can we balance the budget and pay down the debt over time by growing the economy. restraining spending. and really tackling the big issues. the big drivers of our debt. i think this is a fresh look at everything. this won't be the same eight with of the debt crisis this discussion. i think it will be a lot more deliberate and productive. then: kevin brady is chairman of the ways and means committee. thank you. rep. brady: thank you. susan: we managed to book him

fresh off of the strategy session with the republican colleagues. what did you hear? what came out of that meeting that caught your ear? what strucktaxes, me is that he is sticking with the border judgment idea. you would expect that in any sort of large tax plan, there will be some losers. and the potential losers are upset. and he is sticking with that pretty hard. he knows they are upset. he knows they are looking at transition roles. he knows the economic consequences. and it raises a lot of money. it promotes the goals that we've gotten and we will press ahead with it. rachael: i think his reaction to the tariff question was interesting. asking republican leadership about tariffs because it is an traditionally something that we promote.blicans

promote. a lifetime's they gloss over it and say, we have the same concerns. we seek tax reform as the better answer. said thatan there they will not be looking at a terrorist. and they say of this doesn't work, you might hear more work about tariffs. we will seenk anything like that passed the house anytime soon. the same thing we have heard for a while. what we are hearing about in the that isrm bill, basically the case that we make with the of menstruation. it has the same effect. and here's the big difference. administration.nl there is a real difference

there. politically, it sounds kind of the same. so they're trying to argue without directly criticizing the president-elect, to say no, try our thing and it will achieve the same thing in a less instructive way. susan: the chairman didn't reference it but can we assume that when they meet with the transition team, there are senators at the table? have you heard whether there are senators at the table? rachael: i would assume so, right? richard: i would never assume that the senators are talking to the house. and the senate, even if they are in the same party, they don't even talk to each other. there might be at a high leadership level but at this point i don't get the sense that it is a house and senate team conversation. susan: as we know, the senate thebe a doorstop for any of

plans that the administration and house might have. so what are you both hearing about the interest in pursuing these big topics? muchel: the senate moves slower. and already, we are hearing that top senators have mentioned, don't forget. we still need to get democrats were a lot of this stuff to get done. the obamacare replacement and -- it is going to take some sweeteners if they are going to get the democrats. in the house, the same thing. in the senate, if they're going , throughax reform thisar order, we will see and we have seen it in the past and we already starting to hear this. the caucus was not happy when they found out that leadership in the senate wanted between

three and four years. the chairman said that people outside washington don't really care about that but i would beg to differ. we wrote the story about three to four years on obamacare repeal. people always wonder, how are they going to wait that long? but i do think people care about the timeline. addition, he referenced companies and corporate planning. so they are anxious about when the timeline might be? richard: yes. companies trying to figure out what they will do for 2018 and 2019. and there are companies that are trying to plan their budgets for the years ahead and modeling out. and those different plans would affect them. so those companies are eager to find out both what is going on and to try to influence this in any way they can. susan: you reference the freedom caucus. we have spent a lot of time talking about the freedom caucus.

haveuch leverage will this in the new congress in the white house and in leadership? rachael: certainly less. ,retty much, at least the same but most republicans are focused , they are not trying much i do hold of a leadership bill because it is not conservative enough. so i do think that a lot of members side with them. the are no longer -- tactics have gone a 180. they are not talking about blocking things were taking out members of leadership. they are talking about how they can help to influence this. so that has certainly changed. year, whenious in a we see trump asking for things

like a $1 trillion infrastructure plan, that will be hard for people to support. although trump could potentially get democrats, he doesn't really need the support. again, we could see that diminish over the years. if it is a republican bill, something partisan getting through both chambers, and they don't begin his conservative enough, they could withhold votes to stop it. i just don't know if they are going to do that. susan: thank you for coming back again this week. as he times are ahead and we look for to having you back. times are ahead and we look forward to having you back.

>> what do you do next? you can aspire to be james monro? tonight on q and a, a historian talks about james buchanan's presidency and his latest book, "worst president ever." the legacy of the least of the lesser president. >> i think the differentiation of good presidents and bad presidents, washington has --veys that historians take, james polk hated him for being a waffler. going back and forth on decisions. he said, you have to tell it what to do. tonight at 8:00 p.m. eastern on c-span's q and a. >>