know to be fundamental. >> thank you very much for talking to c-span. >> thank you so much. pleasure follow the transition of government on c-span, as president-elect donald trump lects his cabinet and republicans and democrats. we'll take you to key event without interruption. watch live on c-span. watch on demand or listen on the c-span radio app

return guests is congressman kevin grady of texas, joining us from houston. mr brady is the chairman of the house, ways and means committee, and returned where he met with the members talking about strategy for the new session in january. with a focussed on tax reform, code rewriting, and the health care act. thank you for being with us, mr brady. >> thank you. let me introduce you to the reporters asking questions. rachel is with politico observing congress, and richard reuban, tax policy reporter with the "wall street journal", making a return. we'll start with taxes. richard, you are first. >> you were here meeting with house ways and means and republicans after the rest of republicans went home. what did you accomplish, come

out of that meeting with that you didn't have going in? >> we had several very good days. look, america voted for change. we have a new president who wants to make america competitive again. tax reform is key to that. we focus the first day on the tax code. focussing on how to treat nor jobs in america. how do you create incentives to remove the job. how do you trade the tax code so competitive that the best place to sell to america and the world is from here at home in the united states, so we had key decision point there. we reached the decisions, and we are going to be ready for the new president on this tax reform initiative. >> key decision points - what were those, what were the decisions that you came out of

that retreat with, on taxes. >> well, major ones were the review - the listing we have been doing since june. we unveiled this at the end of this month. we held hundreds of town haul meetings throughout the country, and i can't say how many meetings with business leaders throughout the world, the country. feels like the world. and so we would take the input from that. making sure we had the most pro-growth, boldest reform that we could, and focussed on serving areas like insurance, financial services, small businesses making sure we had the tax provisions right going forward. >> i'd like to jump in and ask how you are reconciling the house of republican tax blueprint with what donald trump wants to do. there's a bit of a difference, one being the corporate tax rate. trump talked about a 15% tax rate. republicans and the house 20%. where do you think it will come

down on that, and why. and why specifically are you guys looking at 20 versus 15? >> yes, so, i think the key point is there is a little difference and not much. i think trump and the tax plans began 80% the aim we had great discussions with the trump dream going forward. we are really interested in getting down our rates for our job traders, whether they are the biggest companies or the smallest mum and pups. they are important for us. the lowest we can go. we want to achieve that. as we do that, we also want to redesign the code. right now america is competing with one hand tied behind our back. frankly we have an advantage for foreign products over made in america products. we have big incentives to move u.s. companies oversees, as part

of the discussions we are making sure that we level the playing field in america. wherever the products are made, whoever makes them. let's have real competition in america. importantly, we want to the make sure this is the best place, a 21st century magnet for new jobs and companieses. >> is there a concern if you guys go to the 15% corporate rate. republicans talk about a revenue neutral tax reform. they don't want to lose money. going forward, is there a concern if you go to 15%, the government will lose too much money, it will cost of the country more? >> one of our goals, and we designed this to be - to break even within the budget. counting on economic growth. solid economic growth going forward. that's where we are at today. as you know, to lower rates or make changes, you have to do trade offs, you have to lose something else, pull punches on something else that is pro go.

we are weighing that within all the tax reform effort. and, again, having great discussions with the trump team. i have no doubt at the end of the day we'll have the lowest business rates in modern history. so there are businesses - so they can compete and win anywhere in the world, especially here at home. the way you are trying to do this, encourage products made in merge, boarder adjustment. it's a novel thing for the u.s., or the rest of the world. as you know, businesses are trying to wrap the head around it. you have the big retailers, oil refiners, coke industry, all sorts of other importers concerned about the proposal. how are you trying to sort of calm them down, what is that conversation, and was one of the decisions that you made this week to press ahead with that idea despite some of those concerns were the business

world? we made a strong case for america to compete again, we have to adjust the taxes. others take taxes off goods and services coming our directioning giving them a price advantage over us in america. they take it off we don't, sending products around the world. we lose both in america, and around the world. that can't stand. this is a key part of the built for go tax code. it's going to stay. tax reform affects everyone differently. and industries differently. we want to listen to and find solutions with those who rely a lot on imported goods. coming in to america. we think imports and withports are both important economy. but we are going to insist that they be taxed equally here in america. >> the way that that adjusted - you talked to your economist.

and when i talk to economist, they say adjust because the dollar is a lot stronger making the imported goods cheaper. they shouldn't be as worried as they are. the rising dollar - the front page in "the wall street journal" this week. we talked about the global term i will from the rise in the dollar that has happened. and that americans own assets outside the u.s., they might be heard as well too. how will you thing about the ripple effect globally. >> yes. making america more competitive again has an impact around the world. making sure that they can compete and win here around the world does make a difference, and so industries will have to adjust. what we know is the board of adjust ability has been established and kerbed more than 100 times around the world and more than 100 times. currency suggested. because others want to compete

in the markets. so we know that will occur. but if our local industries are concerned about the transition. bring us your solutions. we are listening, we want to tax code that is built for growth across this country, and we want to listen to those solutions, our door is open. we thing it is important for them to understand that we cannot leave in place any tax policies to encourage our companies to move their operations overseas, just to sell back from the united states. >> a couple of times you used a reference to meetings with the transition team. can you tell us who the key players are around that table. on their side. >> yes, well, there are a number of them. there are a number of them because they are moving quickly on a lot of fronts from tax reforms to health care, trade, and on to infrastructure as well. so we are sort of intersecting with them in a number of those

areas. there's a list of key people and they continue to grow as they name their key cabinet officials. and with the secretaries as well. rather than go through the list, let me assure you these are constant contact, and i am really encouraged by the direction that we are all going together. >> one of the names that is in the rumourml this morning is the appointment of larry kid low, people recording as possibly the chair of the economic advisors for president trump. would you welcome his appointment in that role? >> that would be a grand slam appointment in my view. larry kid ler has experience in administration, federal reserve, the knowledge of free market principles on tax reform and growth. i cannot think of a better choice for this new administration and new brad.

i would be excited by that nomination. >> free markets - i wanted to ask you, mr chairman. donald trump has been talking since the election about american companies, new jobs, potentially a 35% tariff. we talk about tax reform and here house republicans talking about incentives, carrots as opposed to sticks and punishment. what do you thing of the idea of a tariff. are you guys going to do this as part of tax reform. what are your thoughts on this issue. >> well, you know, i think it's going right to the heart of what america nose, which is the which things are going, we can't compete and win. we are literally competing with one hand behind our backs. >> i'm convinced going to the direction where the president wants to take us, fixing the tax, goes to the heart of this,

puts us on a level playing field and more importantly companies will be disadvantaged when they move their operations overseas and away from america. least if they want to sell them in the u.s. and around the world. we'll work closely with them on all of these issues because our goal is exactly the same, which is to strengthen the economy, let us compete and win anywhere in the world. the goal was the same. but a lot of people, conservatives would say that that is not a free market. it doesn't fall in line with free markets and the ideology that conservatives have. >> well, you know, there were several ways to tackle this issue, and i suspect that if we are not successful in changing this broken tax code, if we are not successful in going more jobs here, and level the playing field around the world. there'll be more talks of tariffs in this area. so, you know, my thought is

let's go straight at the heart of the problem. which is fixing that broken tax code. >> so how do you expect the tax reform plan to roll forward, when do we expect to see pieces of the bill or the whole bill. what is your - as you come out of the retreat, your calendar for 2017. >> a great question. a lot of it, richard, ties to president-elect trump's first 100 days, and the priority that he is setting, until we see the timing i can't answer for sure. what we are doing is working through the holidays. continuing to put the elements together. we continue to list the industry in a number of at least areas. we are making a bold change. we are moving for business from an income tax based on where things are produced. or the profits are. to a cash tax based on where it's consumed. it's dramatically more

pro-growth for the u.s. economy. but it's a change. we are listening to industries. making the changes. i expect a lot of the work to be done over the next month. the bottom line is we are going to be ready for president-elect trump on tax reforms. >> we at the halfway point. we have health care. >> tell us a little about what you thing, how republicans replace obama care. step it out for us, we know there's a lot of things influx. what are the main things you'll change, and what can we expect it to look like. >> thank you for asking that. this usually is lost in these discussions about timing and sequence and what happened happens first. thanks for looking at the big picture. obama care is not working. premiums are accelerating. doctors and local hospitals, we know it's not fixable. what we suppose is to replace

the huge bureaucracy, the woolly mammoth of obama care with the concept of the health care back pack. the freedom of americans to choose the plan that is right for them. from job to job. state to state, home. if they want to start their own business or raise a family and even into retirement. the health care back pack, the concept means in addition to choosing a plan right for you, that can travel with you, that you can change to meet your changing needs. we think the tools in that backpack are easy access to health savings, making health care more affordable, the reaching costs, and control of your medical records. you can choose to give your medical history to the new doctor for the trial or the emergency room if you find yourself in that situation. the health care approach, requires us to knock down a lot of silos, the focus not on what

washington needs, but what families and patients and local businesses need. it's a change from where obama care is today. do you think republicans in the end - it will be like a tax credit. which way are you leaning on that. can you assure the 20 million americans who are on obama care, some of them are concerned about losing health coverage, what would you say to them. >> yes, let's start with the second one. >> i can assure americans they'll have peace of mind, time and opportunity to choose a plan that is right for them under the health care backpack concept. obama care and the plans don't end jan 20th. the plans will continue. as we outline our new options and the new choices americans

will get. they'll have plenty of time to make the choices. what i know is this, americans can't continue too much longer with plans they can't afford with high out of pocket costs that is not working. >> and your response to reference into retirement. are you signalling changes into medicare policy? >> over time, it is important that we save medicare. the main hospital trust fund is bankrupt in less an 10 years. this is such an important programme for 50 million or more americans. we have to take the steps, small and large, to save medicare. and over time, we want to make sure that just as the seniors have options for medicare advantage, and they have options for the drugs and medicine, which is proven very popular, that they have options for the overall care as well.

so we think over time, that seniors should have another choice to carry the health care backpack. the plan that works for them into the retired rather that taking what they've given. we'll continue to work on that health care, no date or time is set. there's a lot of health care to tackle that. we'll look for solutions and bipartisan solutions. >> you said 20 million will remain on the plans for 2017. insurers are trying to decide 2018 making decisions in the middle of next year and beyond. what do you say, what will the republicans do to maintain the exchanges in however long a transition period there is

before your new plan comes online. >> we are looking at those transitions. we thing it's porp that the insurance market, because of obama care, it's unstable. they are fleeing communities and counties. they'll be looking at another round. it's based on the bare where are structure. that is the problem. we are looking at ways to stablilize the insurance market, look for ways to begin the reform and the replaced process, looking at options signalling to america that there is a new way, and affordable way to get health care. we are working through the issues and having that discussion with the trump team. >> as you do that. for the replacement or the interim period.

you have a bunch of taxes in it. and on industries, do you expect to keep the taxes in place. during the transition, two or three years. do they get repealed, once the repeal bill becomes law. those 23 taxes on americans and businesses and insurance plans are going obama care is a mess. it can't be replaced overnight, doing it in a way that americans can do it: all of that is part of the did you suggest. it's harming more people. americans want a better way.

republicans talked about the repeal and delay for the transition. that applies to the splending side of the insurance subsidies, and the funding sides, and the tax. we shouldn't necessarily expect the taxes to go away in 2017. >> it depends on the timing of this. making sure that they have peace of mind on the transition we put a date of 2018 for the end of these taxes. no decision has been made this year going forward. it's a good social reassuring

transition. >> we have 4 minutes left. >> i want to follow up on the time frame. we want to hear the last obama care repeal was two years, as you mentioned. that it would need to take effect. now we are hearing four years. i'm curious. what are what is this dependent on. are you guys waiting to hear from insurance companies about how much time they need, is there concern - you are going to need a few democrats to support a replacement. that could take a long time. why this huge difference between 2 and four years, and what is it dependent on? >> thank you for the question. this is, i think, the perfect disconnect between washington and the rest of america. washington is obsessed with one year, two years, four years, what goes first, what goes second. but the american people simply want to know can i get better

health care than this. can i get out of this huge monthly premiums. high pocket softs our focus is to make sure we deliver with the most freedom and health care plans for americans. part of that determines the timing ever this. i can tell you, republicans and congress, i think the trump team as well is focused on creating and developing the very best solution on health care for americans. timing will be part of that. >> you referenced a need to get bipartisan results. i wonder what you will do to attract democrats. the original affordable care act was that it was not bipartisan, is it important to attract the amount of democratic votes. >> the decision is important to democrats that they provide quality health care.

they are communities like ours, in many, four out of five of their constituents found a way to get out of obama care, when you keep the door open. and invite the ideas, there's common ground going forward. i hope to find it. at the end of the day, in an open and transparent deliberate process. everything that obama care wasn't. this is the approach the republicans will take, it will be very much different. we hope democrats will weigh in, they are concerned about health care. >> the final question. >> if you don't have enough to do next year, you have the need to raise the federal debt limit. how are you thinking about that, and, you know, republicans have been resist only during the obama administration to raise that limit. how is that going to work?

>> yes, so, to be determined is the answer. and in the past, it was just a hostage taking by the president to demand higher spending. we have with this president the opportunity to change the way washington works, and the way the budgets are put together, which is ridiculous, and change the way washington spends. if washington was a manufacturing plant it'd manufacture spending. if we want to manufacture efficiency and customer service, you have to retool the plant. as we look at the debt ceiling, what illook for and propose are changes in the way washington's budget works, looking for ways to tackle the day to day expens expenses. looking at the big picture, how to pay down the debt, growing the economy, tackling the big

issue, the drivers of our dent this is a fresh look at everything, it's not the same old eight years of crisis, it will be more deliberate. >> trevor is the chairman of the ways and means, chairman brady, thank you for being our guest on news makers this week. we now have booked mr brady off of his strategy session, what did you hear new, you have been covering the issues for a while. what came out of the meeting that caught your here. >> on taxes we are expecting that he is sticking with the boarder adjustment idea. they were getting heat from businesses as you expect, there'll be winners and losers. those are potential loser, retailers and others are concerned about it. he is sticking with that. he knows they are upset and looking at transitional and

knows the economic consequence, and basically they have internalized that and said it raises a lot of money, it's important for the growth goals and we'll press ahead with it. >> i would say his reaction to the tariff question was interesting, we asked republican leadership about the trump tariff tax because it's not something you hear republicans proposing and vad vo kating for. we say we have the same concerns, the tax reform is the better answer: the shairm said they are not going to look at the tariff but says this doesn't work, you may hear talk about tariff. i don't think we'll see anything like it pass the house. it was interesting. >> i think what he's basically

saying is - sort of a definite thing in the tax reform is that it's tariffy enough. the administration has the same effect. here is the difference, tariff is on imports because potentially it tries to take the tax import and provide the same tax. so there's a difference there from an economic perspective. politically it sounds the same. they are trying to argue without criticizing the president-elect. trying to do it in a less destructive way. >> can we assume that when they have a meeting with the transition team, that there are senators at the table. have you heard whether senators are participating in this discussion. >> i would assume that senators are talking to the transition team. not to the house.

one of the first rules in congress is the house and senate. if they are in the same party don't always talk to each other or agree. i'm not sure there's a joint health benefit. there's a high leadership level. but i don't get the sense of those conversations, at least this deep depths. the senate can be a door stop for the administration or the house. what are you hearing about the senate's interests in pursuing the big topics. >> the senate is slower, and top senator mentioned to the house or transition team. don't forget. we need democrats to get a lot of this stuff done. obama care replacement, repeal. they can do it on the majority. replacement will take time if they try to get it. tax reform it the same thing in

the house. they don't need it for them. in the senate. if they pass tax reform through regular order. they'll need democrats there, we'll see a lot of - and we have seen this. maybe frustration with the senate and the house. leadership in the centre wanted between three or four years to repeal obama care. the chairman said people in washington don't care about that. i beg to differ. when we wrote the story about 3-4 years, it's a top story on the site all the time. >> people are are they going to wait that long. i think people care about the timeline. >> are they anxious about what a time line may be? >> on both issues, insurance

companies are trying to figure out what they'll do for 2018 and 2019. and you have companies trying to plan their budgets for years ahead and modelling out in each of the plans, and how it affects them. countries are eager to find out what is going on and influence it whatever way they can. >> you referenced the caucus on the program over the past cycle. we spent a lot of time talking about the freedom caucus, how much leverage does it have in the new congress with everything shaken up in the white house and leadership? >> less. numbers are the same. but pretty much the same. but the changes that, you know, republicans - most of them are focused on, unifying and talking, trying to figure out how to get conservative priorities past. they are not talking about holding up a leadership bill because it's not conservative enough. at least at this point. so i do thing a lot of members,

a lot of discussions - they are not longer - the tactics have gone 180. they are not talking about blocking things or taking out members of leadership. they are talking about how can we help influence the bill coming out of the pipeline or getting rid of the regulation, that has changed. now, if, you know, i'm curious in a year when we see trump is asking for things like a 1 trillion stimulus plan. it will be hard for people like the freedom kauk cows to support. trump can get the democrats, he doesn't really need their support. we may see their influence diminishing over the years, if the republicans still something partisan to get to the chambers, and they don't think it's conservative enough. i don't know if they'll go up against trux.

>> thank you both for coming back to news makers, busy times ahead. look forward to having you back. >> thanks. join us on tuesday, january 3rd for live coverage of the opening day of the new congress, watch the swearing in of the new and elected members of the house and senate. and the election of the speakers of the house. live coverage of theents on capital -- the event on capital ill begins 7:00p.m. eastern on c-span or cspan.org or listen to it on the radio app. sunday jan 1st "indepth" features a discussion on the presidency of president obama, we'll take phone calls, research, our panel rachel ryan, from the american urban network and author of the presidency

black and white. princeton university professor eddy, author of democracy in black, how race enslaves the american soul and pulitzer prize winner journalist david mariners, author of president obama the story. watch in depth live from noon to 3:00p.m. eastern, on sunday. booktv on c-span 2 the presidential inauguration of donald trump is friday january 20th. c-span will have life coverage of all the events and ceremony, watch live on c-span and cspan.org and listen live on the c-span radio app russia's ambassador to

turkey was assassinated at an ankara art exhibit by a lone turkish gunman shouting god is great and don't forget aleppo, don't forget syria in what the leaders of russia and turkey call a provocative attack. turkish officials describe the gunman as a 22-year-old off-duty police officer. three others at least were wounded. the state department called the assassination of the russian ambassador despicable here is part of briefing from today. it's about 15 minutes. >> good morning, everybody. i know, i hope you see in the statement that the secretary put out. if you didn't, allow me to