60-year chronicles his involvement in the conservative movement. mccarthy eneral through my father. he was a fellow i met. he liked to party. he liked a drink or two. as long as you didn't talk about couldn't ask for a more fun guy to be with. he was very serious about that. also someone who did not take advice very well. things onsequently said and even did things that hurt of ending communism for some time. q&a sunday night on cspan. live today on cspan, "washington journal" is next. for a.m. the house returns speeches. at 10:00 a.m., members begin work on legislative business including the tax reform bill.

coming up in an hour what the republican tax bill means for you. tax ♪ host: good morning. it is tuesday, december 19. a two-our "washington journal" is ahead for you. the senate reconvenes at 10:00. the top item will be the final vote on the gop tax reform legislation. that will also be the focus of "washington journal" with republicans confident they will be sending president trump a tax overhaul for his signature. ifwers, call and and tell us

you support or oppose the bill. if you support, the number for you is (202) 748-8000. if you oppose the legislation, give us a call at (202) 748-8001 . you can catch up with us on social media. good tuesday morning to you. you can start calling in now. a little over a month ago, the house passed its version of tax 2 to bestdecember passed its version of tax reform 51-49. after reconciling the 2 bills the final legislation is expected to hit the floor in both chambers and republicans are confident they have the votes. [video clip] kevin brady, the

chairman of the house ways and means committee called tax reform a rubik skew. he -- a rubik's cube. he is right. we have figured out how to solve that rubik's cube. we confess the legislation is andperfect, but it is good it is much better than the status quo, which our democratic colleagues have settled for. last week the conference committee met between the house and senate, and members, including myself, had any difficult conversations about how to reconcile the differences between the two bills. those discussions were necessary, they were present, and they were -- they were , and they were productive. we have a consensus on how to get the bill to the president's desk before christmas. we will vote on the final bill after the house does tomorrow,

hopefully by tomorrow night. perhaps it will carry over into wednesday morning, but we will get it to the president's desk for him to sign it into law by christmas, as we pledged. host: for more on the rubik's cube of tax reform, we are joined on the phone. take us through the timing of when we can expect votes in the house band senate and the confidence level going into the votes among republican leadership. caller: the house will vote first. they are expected to vote in the afternoon. then send the legislation to the senate. the house can -- only 13 republicans defected last month. they can only afford 22 defections. the expectation, according to my colleagues, is that more

republicans will vote against this version then the version the first time. in part, because this bill is well.lling very republicans are trailing democrats pretty badly. there are a number of vulnerable republicans. nevertheless, it will pass. then it will go to the senate where it will probably get unanimous support. bob corker, and the senate tax bill is now on board. swingcollins an another key vote will be supporting this as well. the only one that will not vote for it is john mccain. he has returned to arizona to undergo physical therapy after receiving cancer treatment at walter reed medical center last week. if there is something

going wrong with the republican plan, what are you watching for today if a surprise comes up? caller: i don't think a surprise will come up. at least not in the senate. may be in the house because it is a big body and it is tough to keep tabs on everyone. it would be a surprise if this thing lost a vote. it would be shocking. you never know. you have to hold the vote. if there is a surprise, i guess it would be in the house. you have people facing tough elections, if they decide they won't vote for this thing, but that would be a shock. host: you mentioned bob corker. caller: bob corker was the only republican vote against the bill when it first got to the senate.

he did so because he was concerned about the impact on the deficit. he changed his vote. it was revealed that a provision was added to the bill at the last moment that basically lowered the tax rate for real estate moguls and would help people engaged in real estate, like donald trump. that is how bob corker made his fortune. there is speculation that this was added at the last moment to win over bob corker. how did this provision get in there? not aassured this was last-minute giveaway to the commercial real estate industry to bring bob corker on board. day, we arex vote days away from a potential government down.

can you take us through the latest on negotiations to avoid that shutdown on midnight on the 22nd? aller: the house will have rules committee meeting today. tomorrow expected to pass a stopgap measure that funds government until january 19. that would fund defense programs through september. they will -- that bill includes a five-year extension for the children's health insurance program. they will send that legislation on wednesday to the senate. the senate is expected to pull out the defense funding because democrats will not agree to a year-long defense bill that is attached to a month long cr stopgap. the senate will pull the defense funding out and probably add something for susan collins in exchange for a vote on the tax

bill, the murray-alexander legislation to shore up the individual insurance market is to subsidize insurance markets. that will be attached and sent to the house. the house will rubberstamp it and go home for christmas. but: that is the plan now, we will see what happens in the days to come. alex bolton, thank you. caller: thanks for having me. the: we are spending two-hours of "washington about taxalking reform. if you support it, call (202) 748-8000. if you oppose the final tax reform bill, (202) 748-8001. we will be talking about a lot of provisions in the legislation throughout the day and the debate over it that we have seen in the house and senate in the last 24 hours and in recent days . alfred's in california on the

line for those who support the tax reform bill. good morning. thank you for taking my call. how are you? host: doing well. go ahead. caller: i support it. i am in california. we are taxed so much. i am tired of watching chuck pelosi,and nancy especially chuck schumer yesterday, giving the speech how republicans never want to work with democrats. they bring up daca. i remember democrats did not vote for daca. they constantly buried the republicans that they don't want to work with the democrats, and that is not true. understand how chuck schumer can go on television and lied to the american people. host: finish your thought. see a bigm going to

difference. i have talked to a lot of people and i know a lot of people are for this. host: how big of a difference are you expecting to see because of the tax reform bill? caller: i am on social security. i have a part-time job. i will see a big difference. i have a lot, a lot of people smallre entrepreneurs, businesses. they will see the big difference in regards to taxes coming down and more money in their pockets. that will create the small businesses that will be able to grow bigger and hire more people. host: alfred brings up chuck schumer, the senate minority leader. here is a little bit of what he had to say. [video clip] tomorrow, republicans will have a chance to vote down the

tax bill, one of the least popular pieces of legislation in the last 30 years. my republican colleagues have accomplished a tax cut that is usually popular that is 2-1 unpopular. work. they know what is in it. the highest income people do great. well, let me just say that if by some miracle our republican colleagues get the good sense to vote this package down and really help the middle class instead of just helping the will be we democrats there. they will find a democratic leader and democratic party willing to work with him on real, bipartisan tax reform. host: chuck schumer on the senate floor. we will likely hear more from chuck schumer and senate members

as the house and senate vote this afternoon sometime later in the evening. perhaps even early tomorrow morning. a vote in the senate as well. as we get updates in the timing, we will tell you about it. we want to hear if you support or oppose the tax reform bill. patrick, go ahead. steve cohen got a big group together. will have big job increases. 5% of the people raised their hand. if you watch "the wall street journal" and bloomberg over the earnings report over the last two quarters, there was not a butof talk about hires, there was a lot about stock buybacks and dividend increases.

i want to remind the c-span i donce about the -- not think they deserve a tax cut . lowe's and home depot's stock daca,collapse without as fema, flood insurance. i think it is ridiculous to say that ireland has a low tax rate. nato.eland support let ireland send battle groups to the asian continent and protect south korea from themselves. the middle-class, the family tax cuts, they expire. every corporate tax cut stays in. i think it is kind of -- i don't know what to say -- lousy that c-span does not point that out. that you just let -- and it

seems like you just complain about food stamps, food stamps, but another bank bailout? no, c-span is totally fine. host: we will be talking about the bill and digging into the different parts of legislation. we have been trying to do that over the course of the last several weeks and months. we are joined by laura davidson and unmanned a backer -- and amanda becker. we can dive into any topic you want to. they are here to answer your questions and take us through what we found out from the final bill since it was released. john, go ahead. caller: good morning. i would like to make a few points as quick as i can. i work a full-time job and 2 part-time jobs.

torobably make close $100,000 a year working 80-90 hours a week. when i look at the doubling of new taxd tax credit and brackets, i will save $2000 a year, somewhere in the neighborhood of a 20% increase in savings on my tax bill. i am happy with the bill. as far as the point that your former caller was making about the tax cuts due to expire, that is true, but it will be years down the road. 2025 or 2023? host: after 2025. caller: seven years to go? seven years at a reduced tax rate is phenomenal. as far chuck schumer goes, what maroon.

only slight disappointment is that i am happy the standard deduction has almost doubled. i am sorry to see the personal redemption go. that is almost a wash for me. i love the new tax records. even if they're concerned about the deficit growing, and this, that, the other thing, even if taxes were tweaked so the federal government to again twice with their taking in taxes now, congress and those guys would spend it and put us further in debt and deficit. that is a nightmare. it doesn't matter how much money they get, they will overspend. i would rather it go back to those of us that are working and

saving for our families. we know the system will collapse in a few years anyway. host: for our more visual a breakdown ofis income taxes for individuals comparing current laws to the republican bill. seven tax brackets in the current law. seven in the final bill, but 39.6% would go to 37% in the final bill. the alternative minimum tax, alternative income tax in the current law is calculated would be kept in the final bill, but increases in exemptions. when it comes to the standard deductions, 6500 dollars for a single $13,000 for couples. in the final republican bill, it is $12,000 for individuals, $24,000 for couples. as our caller pointed out personal exemptions would be eliminated in the final bill.

a lot to go through. thatll be showing you chart and others throughout the show. we want to hear if you support or oppose the legislation. susan in goodyear, arizona. on the line for those who support it. caller: good morning, good morning. lend a gonzalez, a democrat, who has been with us for 82 years. when we had our meeting she was telling us about the tax -- linda gonzales, a democrat, who has been with us for eight years. she is buy yourself with no kids. she will get a really good refund back. she does not have to pay the $700 a month for no insurance. her.is going to help my husband makes $80,000 a year. that is going to help me. i am disabled.

$2,225xes will bring for 2018. my son in georgia has his own business. that will help him. can hireemployees and more because of the health insurance program that obama did. in nebraska, she has one disabled kid in that will help her because her husband retired from the military. we have 5 families in three states. with mynzales striped family telling us how the tax bracket would work. one thing she did not like was

401. i had to spend some of my 401 for my medical. i do not know how that will lift affect. goingmaking a note about through that and how that will impact folks. we will definitely do that. stick around for the 8:00 hour. the house will be coming in at 9:00. that is why we will end our program at 9:00. we will show you the house in its entirety. on the line for those who oppose, megan, good morning. caller: thank you. i watch c-span all the time. i am in my mid-30's. i strongly opposed the bill. the fact that it is going to $6 trillion gift to the billionaires and millionaires while donald strupp brags that wall street is at a record high, where republicans

have another massive burst. millions of foreclosed homes. we have a homeless crisis. they are going to cut our health care benefits. next, paul ryan, marco rubio, and a couple others are next on the chopping block. the fact that they are entitlements because we pay into it. every single american citizen pays taxes. that goes to run this country from top to bottom. thes our money that makes richest, most powerful country on the planet. they are telling us we don't have enough money to fund meals on wheels, social programs? people that are disabled? locking the doors, refusing to , orwer the phone

constituents trying to find out where they stand on the bill. this is an outrage. not enough people are fully aware of it. on most of the news shows that .ake it seem like, $2000 maybe they say some families might get . they finally did at to put a cap on the state and local state and property taxes at $10,000. if you have an estate that will .2% of they richest, they don't pay a dime in estate taxes. they are hiding their money from the irs. how is that patriotic to hide your money from the irs? if regular americans try to do that, don't you have to declare every $10,000? they say take our paychecks and us more, taketax

itt we are paying and give to corporations, millionaires and billionaires, hoping they might hire someone in the country and give that money back to us and we will get a tax rebate or maybe an increase? the economy has been booming. there are more millionaires and billionaires than ever before in human history. this is outrageous. host: we are hearing from you all morning long on the tax legislation that is hitting the house and senate floors. we will update you on the timing of when those votes will happen. "the hill" he said the more interesting vote might be in the house. 22se republicans can lose house republicans and still pass the vote. on november 16, they lost 13

house republicans. here are the 13 that voted against the legislation. dan donovan of new york, darrell jonesf california, walter , peter king, leonard lance, frank lobiondo, tom mcclintock, p aresmith, lee zeldin, you those are some of the folks to be watching when the house vote goes down. several of those folks have come out to say where they stand on the final version that will be voted on today. here are a few of the tweets from those individuals that i just named. "ia rohrabacher saying intend to vote no. due to the pressure of several members like me the bill was improved, but not enough for a significant number of my constituents." "i will be voting no on the tax

reform proposal." and a link to his statement. tomorrow, we will continue to work hard to ensure that the new york 21 families and small businesses have their priorities represented in congress. darrell issa of california, "i will be voting no. makes some improvements, but the changes don't go far enough to guarantee tax relief for constituents in my district." will lobiondo saying he vote no with his concerns about medical and educational expenses. is one more of those. he said some improvements on the reinstatemente is of the reductions for medical expenses, but the state and local tax deduction is in adequate for new york in long island. he is voting no.

here is one member who went from no to a yes. our capitol hill producer flagging mess. tom mcclintock is the member from capitol hill. saidweet from cerro wire mcclintock said that his concerns have been addressed in table vote yes tomorrow. be a littleed to bit more so 10. one of the key members that was being watched in the senate vote for susan collins. a key swing vote from maine. she took to the floor yesterday to say where she stands on the final version. [video clip] >> i rise to express my support for the agreement on the tax act.and job the first major overhaul of our tax code since 1986.

this legislation will provide tax relief to working families, encourage the creation of jobs spur here in america, and economic growth that will benefit all americans. president, let me start by discussing the effects of this bill on individuals and families. throughout this debate, i emphasized that reforms to our outdated tax code must help working families. 3 key amendments that were retained in the final package. allow families to deduct up to $10,000 in state and local taxes, increase the deduction for medical tax-free and protect contributions for retirement savings.

host: we are getting your thoughts on the final vote that will be happening in the house and senate on the tax reform proposal. if you support the proposal, (202) 748-8000. if you oppose it, (202) 748-8001 . you can call in all morning long . we will be talking about it this our and our next hour. i want to keep you updated on news around the country and images yesterday out of washington on the deadly amtrak train crash. there are some of the getty images. here's the front page of "the seattle times," on inaugural derailment. 13 railcars toppled.

soldier is an emergency workers rushed to the front page to the "news tribune" they went with the headline train plunges on to i-5. usa today, their front page as well talking about the speed crash.d in this the train going more than 80 miles per hour moments before it entered a curve where the recommended speed tops out at 30 miles per hour according to today."reported by "usa this be limits will probably be key points for investigators trying to determine why the train flew off the rail and caused several cars to plunge off the bridge. fatalities were on the

train, not the roadway. more than 100 people taken to hospitals for treatment. we will be talking about that as the investigation continues. the east coast, getting your thoughts on the tax reform vote. dave is opposed to the legislation in cincinnati, ohio. caller: good morning. merry christmas. they tried to sell this tax simplification, it is not. they added more loopholes. my biggest issue is i am a consistent economic conservative. trillion toing $1.5 the national debt. where are the republicans that care about deficits, care about debt? they don't seem to care about it

anymore. i do. i do not want my great nieces and nephews having to pay off this debt. it is an abomination. host: what about the republican that will the growth be generated by the tax reform will be enough to cover that $1.5 trillion? dream. that is a pipe they have said that before, and it has never happened. even if it did, that would cause inflation. inflation is a hidden tax. have that, that means runaway inflation. the fact that republicans are theg down this street,

supply side, trickle down, it is the same thing over again. they tried it to other times. .eorge w. bush tried it it was a disaster. here we are again, doing it over again. it is just sad. it is really sad. on the line for those who support the legislation. why are you supporting it. -- if ii like the idea can save money i will do it. that is the way i look at it. i am a disabled veteran. get $43,000 a year. claim myd, how would i deductions? i never hear anything about veterans or social security in my category. i was wondering, as i get information on that and on

first-time homebuyers, i just bought a home this year, i was wondering how i claim my deductions. i'm exempt from taxes. that is what i'm confused on. how i get my deductions, and all that. host: we can find out more about how that specifically might or might not impact the military on. our panel comes i can tell you about the mortgage interest to duction and what happens in the republican tax plan retaining the deduction of interest on the first $1 million of a mortgage under the current law allows deduction on the first $1 million on mortgages well. $750,000 inmber is the final plan. let me double check. i will get that number for you. david on the line for those that

oppose. caller: good morning, c-span. thanks a lot. there's a lot i can say. bush tax cut on steroids. with the bush tax cut due to the economy, this will be worse. to aush tax cut equated trillion dollars in year. that is where our $20 trillion debt comes from. you're supposed to pay the debt down. .e have not done that bush came in and said we need to broke.ething that is not that is what they're doing now. the economy is good, the stock market is up, everything except wages we are doing well. what are they doing?

they will take money out of the economy. where is the evidence that shows orks?w supply side economics works sometimes, but this is the time when our economy is doing better to pay down our debt. if the stock market is doing dol with record profits, why they need a tax break more than the middle-class? it will do with the bush-era tax cuts did. they said we will fix something broke. not what happened to the economy? look at history every time we have applied this. look at history. host: you can do. the interest undertgage up to $750,000 the new republican tax reform plan. if you bought the property

before december 15 you can still deduct up to $1 million which is the current law. loan interest is no longer deductible for anyone. maybe that makes it clearer for the caller before. on the line for those that support the legislation, go ahead. caller: just listening to your previous guest, the ones that have been imposed to the tax cut, they must not own a small owners. or are business we are partners in a small business with 20 employees. on anxes are paid individual basis. it is what they call a pass-through. we are hoping the tax cut lowers our tax burden and we can fork trucks and

pickup trucks we need to. believe most americans can spend their money more wisely than the government has been spending it. as a small business owner, i would hope the tax cuts would help our business out. is this final legislation we are going through what you hoped for when tax reform was first discussed as a serious possibility at the beginning of year or the 2016 campaign cu? caller: i think so. if we can lower our tax burden and it gives us more money to invest, we need new equipment. years, anyone in

business can tell you it has been a struggle to stay afloat. , the majoritysses of businesses are small businesses. ibm's, google,r or those guys. it is the small guy trying to make a living. host: donna in somerville, massachusetts on the line for those that oppose. caller: hello. keepsse the tax plan that money away from the poor, disadvantaged, and weak, and give it to the rich. theydon't need the money, just don't want to pay their fair share of taxes. i voted democratic, and i would

rather have it go back to the way it was in the 1970's before reagan came in. that has been going on since reagan came in. host: what did you like in the 1970's? atler: the economy was good one time. when reagan came in, it went downhill. and has been going on ever since. host: what kind of for our -- work are you in? caller: i'm retired now. i did everything, cleaning, office work. host: we appreciate the call. you can send us a tweet as well. i want to go through a few of the tweets that have come in as we are having the discussion.

is from franklin. who?tax scam, good for good for trump and wealthy corporations, bad for everyone else. when people see their checks, lhey will support the tax bil and republicans in the 2018 elections. no, is what deborah says. james, another morning to complain about republicans getting a break on their taxes. we want to hear from you this morning. if you support the tax bill. (202) 748-8001 if you oppose. danny on the line for those that support it. caller: hello, .

thes good when you lower corporate tax. the other countries where our help theirt would people for economic development. host: explain more. country --hink the the other countries need to be developed. it will help the other countries. they will lower their taxes. fromare benefiting now jobs being over there. host: you think that puts the united states back in a position of being on the high-end of corporate rates if all the other countries moved? globallyid will help the other countries -- it will

help globally, other countries. host: in danville, ohio, on the line for those that oppose. caller: i have three segments to point out. i think the tweet, the one gentleman that said the republicans will probably win reelection in 2018 because people will see their wages increase -- what they won't see no refund.ll be you will get your money up front. then they will be upset. in is thatly called the republicans have controlled the house, senate, and presidency in the last 100 years for 18 years. 10 years in 1920, and we know what ended up there. 2006, and we1 to

know what we had here. i think this will lead to the great depression in the future. cutseason why these tax years, put in, for eight by that time the american people will know that they had a slim plan, they will vote the then the back in, democrats will have to raise the taxes to balance the budget and issues, and of republicans can run again like 2010.id in 2008 and barrel.a pork in the say,rd the times people show me a poor man that ever

gave a job to a person. every time i go to the walmart, the kmart, or anywhere else to buy something, i give a guy a job. the people that will get the tax breaks will not take any more money and spend it any better than i do. they will put it in the stock markets. greata formula for the depression of the 2020's. in front royal, virginia on the line for those that support the legislation. caller: i'm calling in. this is my first time. thank you for taking my call. i hope the tax bill goes through. whether or not i benefit from it, i know some people that will.

senior.or. -- i am a they raised my medicare 23%, that is a wash. i will get the same amount each month. this will be the third year in 2018. my comment is, i don't quite understand why people keep saying they will take money from the poor and middle class to give to the rich, since the so-called rich pay 85% of taxes. the money that the poor and middle class, that money is coming from the government is coming from those terrible, ugly, rich people. i think they should think about where they are getting their money from so they can go to that other give

person a job. host: why was this the issue that got you to call in for the first time? caller: i have been trying to call in. this is the first time i got through. to tell you the truth i was shocked. it seems to me there is so much hatred for the people that have worked and made a lot of money. evidently, they may have inherited it, but their parents had to work hard to get it. i don't begrudge anyone what they have, but i do begrudge people who are taking what those people have. theyalk about taxing, should pay their fair share, what is the fair share?

to me, we should be paying the same amount as far as percentage goes. i was a lifelong democrat, and now i don't belong to any party. host: sandra, first time caller virginia. royal, we also want to keep you updated on news around the country. we are days away from a potential government shutdown. story in "usa today" discusses the fate of the 7000 undocumented immigrants that up negotiations to keep the federal government week.g past this talking about deferred action for childhood arrivals program, and the negotiations around that program, how it fits into the federal funding negotiation. they hope the members of both parties have filed bills that

could be included in any spending bill that would make a difference for how long so-called dreamers would have to wait before applying to become documented permanent residents applying for citizenship after five years. one republican proposal said they should wait for 10 years, another 15 years. hard-line immigration groups have not endorsed any daca deal. they want to allow u.s. citizens to sponsor, allowing u.s. citizens to sponsor extended family members to come to the united states. negotiations over that topic. one other story you may have aen, matthew peterson, nominee to the federal judiciary. the questions he faced from a republican member of congress. john neely kennedy of louisiana. the questioning went viral.

matthew peterson has withdrawn from consideration since the viral.lip went he was nominated for a seat on the u.s. district court for the district of columbia. he is the third two withdraw amdid criticisms of their qualifications. peterson had been a member of the federal election committee since 2008, but had no trial experience. my decadeshope that of experience would carry more weight than my worst two minutes on television, but i do not wish to be a distraction from the important work of the administration and senate." one other story on the judiciary, another member of the judiciary that will not be on from "the that story

wall street journal" and other newspapers, a prominent appeal followingithdrawed sexual-harassment allegations. judge kozinski, a 67-year-old senior judge on the ninth circuit court of appeals in pasadena, california. central a rasmussen is an issue that has been a topic on capitol hill. sexual harassment is an issue that has been a topic on capitol hill. you can watch on c-span.org and listen on the free c-span radio app. all day long you can listen to the debate on the floor of the house and senate about tax

reform that will happen before and during the votes today in the house and senate. you can watch it on c-span and c-span 2. on the line for those that oppose the tax reform legislation. go ahead. caller: how are you doing? -- i am ong in about disability. i was was working -- i was working as a carpenter. my construction company, i had to pay a bunch of money out. i was able to make a pretty good living. now that i am on social security and disabled, i understand later on they will take money from social security, medicaid, and medicare. y dooncern is this, wh

republicans spend the money that the democrats put away and get in the red. when republicans get in, they spend the money, democrats make the money, republicans spend it. in, the democrats come back they save the money. something has to be done. proposal, why not put term limits on the senators and congressmen? say 12 years for the senators and 8 years for the congresspeople. that way you wouldn't get a lot of people that are buddy buddy with wall street people, the president, and buddies of

buddies of buddies. in your senate delegation in california, diane feinstein running for another term. certainly been there longer than a term limit you propose. you think it is time for her to go? caller: yeah, everybody. it would be a better country. florida, on the line for those that support the tax reform bill. go ahead. are you with us? caller: i am with you. i am non-party affiliated. i like mr.tax bill, trump trying to get everything done. trying to block

him. i don't mind paying taxes and watching my highways get repaired. we got a nice raise and social security from mr. trump, nothing from obama. i'm glad he is out of office. alright. also in florida, fort lauderdale. ndy, go ahead. caller: my husband died six and a half years ago. increase ono get an his pension? host: you're talking about your husband's pension, what kind of work was he in? caller: he was a mail carrier. host: not something i've heard, but i will note that for our

roundtable discussion. line for those that oppose, gabriel? caller: ima first time caller. the reason i am calling is i remember doing the campaign with donald trump saying he loved people. uneducated now we understand because this leadill certainly does not comprehension to poor and uneducated people. $2000 for someone like me that sounds like a lot. what about millions and billions for billionaires? they don't need the money. why don't they put that money into poor and lower income standards?aise our

then we buy more and spend more. that creates more jobs. not giving more money to rich people. giving money to those who need it, those are the ones that spend money. donald trump, he is smarter than all of the judges, generals, and smarter than anyone and he is the only one that can fix america? if you use so smart why does he nominate people for due judicia -- for judicial office with no sense of judicial procedures whatsoever? that is not smart. that is stupidity. i understand make america first means if you are millionaire and .illionaire, you make money if you are poor and in the middle-class, all you do,

according to them, is take from the government. i have worked since i was 15 years old. i have not taken anything from the government that i did not deserve. to talk about america first when all you want to do is put money in the pockets of millionaires and billionaires. outear for people to shout thank you for $2000? what a great relief? and they give millions of dollars to millionaires and billionaires, and they think worth it? host: today, trump risks losing his streett of

credit with the republican tax bill. what makes this legislation dramatically more unpopular than passed incare when it 2010 is the feeling this is a christmas gift for the richest 1%. 3 in americans think the biggest benefits will go to the largest corporations and one in five americans think their own taxes will go down. undercut theld last credibility related to posturing.ulist that could be why he has claimed taxes are going to go up under the bill. from the hearing that c-span covered in november of 1991.

task force on fiscal matters on the credit shortage in the u.s.. --y central testified citizen trump testified about previous tax cuts and how it impacted the economy. [video clip] catastropheto you know in passed, some more positive capacity, but not the resolution trust. in bringing that point up, he tended to agree with me, i think. tax pack was a catastrophe for the country, the real estate industry. i hope something can be done. that something can be done to change parts of it because it has taken in scented's from

investing in real estate. means so many jobs. you have new york city, a city called boston, so many other cities, i can tell you new york city has virtually no instruction right now. even high income housing where you create jobs. you create so many other things. carpet. they buy furniture. hey buy other things that fuel the economy. insepbive has to be put back into the construction of things needed, such as housing of all kinds. >> if you want to watch it, you archives.the cspan you can find it at cspan.org. that an any of our coverage. by this time tomorrow you can watch the coverage of today's tax reform expected toe

happen in the house and senate within the next 24 hours. house votes sometime this afternoon, the senate expected further on in the evening or early tomorrow. we're going to be talking about it more in a round table iscussion next with laura davidson bloomberg tax reporter with bloomberg tax. amanda becker from reuters, congressional correspondent for a round table discussion. keep your calls coming. we'll be right back.

>> washington journal continues. >> as congress prepares to hold in the house and senate on tax reform, we're oined with two reporters our special tuesday round table who have been covering taxes tp becker with reuter. laura davidson capitol hill tax.rter with bloomberg lot to discuss about tax reform. laura davidson first want to get thoughts. do you think this is a done deal at this.? are the folks in the bag as far

vote counters are concerned? >> it's never a done deal. almost as sure of a deal as anything that's been this year. they got tripped up on healthcare. they weren't in the same position as they are now. -- there's known no votes. that's where the margin is really tight. house there are still votes. people from upstate new york, california, who are going to vote no. voted no when the bill was in the house previously, but it of ad through without much fuss. >> agree? >> i agree. n i know in terms of how sure it is from everything else this year doesn't give you that much certain thans more that. there's no known no votes in the senate. that's kind of where we need to watch in terms of it getting through. smattering of an no votes in the house but they the number. in the senate we've seen the only senators who have been on supporte said they will

it. >> who will be the tax reporters today?lowing around who should we watch? >> well, jeff flake is the only uncommitted senator. doesn't mean he's going to vote against it, but he's the only one who hasn't come out and said i'm going to vote for it. i would assume if there's any chasing, there's going to be reporters chasing senator flake. corker has sort of been the guy to watch. he was raising concerns back how this ummer about bill could add to the deficit. he was the only republican to bill was in the senate. friday, surprisingly, he came out in support of the bill. people say this is because the way that the bill treats expanded gives an benefit to real estate investors which corker has some real investments himself. corker and orrin hatch, said his is really an idea from the house. it was in the original house bill. but he's sort of the one person,

flips, it could be him. but he said he's committed. >> seemed like a strong push from him and from republican leadership after that happened. oncern about what that story line could mean. provisions for previous votes. >> of course, yeah. it wasn't totally a total through line. this was something that was in the house. wasn't in these negotiations. i think he felt jarred by saying, look, i have nothing to with this. orrin hatch, i have never seen him so angry when i brought this up. a tough spot. >> angry at who? the reporters? angry that e was people were making a connection. i wasn't in the room. say with any definition yes, corker had something to do hands are no, his completely free. it is true that this was in the and when they went to blend the bill, what they ended up was a combination of the

bill.and senate >> both of those votes happening today. ouse is coming in at 9:00 so we've got about 55 minutes to talk about it. let me get the phone lines. we've split up by income. if your income is under $50,000 202-748-8000 is the number. if you're between $50,000 and $100,000 a year, 202-748-8001. if you make over $100,000 a 202-748-8002. and the line for business owners. plenty of provisions that impact business owners, large business owners. 202-748-8003. figure in.ere you question we're asking viewers, them.t means for what it means and when it actually hits. takes us through when people will start seeing the impact of these provisions,

is passed and signed by the president? >> under this individual side, the e will start seeing impact in february. they think that is when the irs might have the new tables ready. so employers can recalculate what the with holding should be rom your pay check, people should start seeing a different -- if they're going to see one shortly after that. table?'s a >> the tax tables are just the brackets that you fall under, is taken ith holding out for various things. the checks you get from your things taken out of it before you ever see it. federal income tax, state income tax. they're expected to get that employers to the around february, how you should be calculating that going forward. then in terms of deductions and what you can and doesn't hit hat until another year after that. correct? whenat will come into play you're filing your taxes for 2018. you know, march

or april 2019. aprilthose who wait until 15th. >> i will be doing it mid march, late march 2018. davidson, the biggest impacts for individuals? s it gonna be on the with holding side? is it going to be on the deduction side? hat are you thinking for the general viewer watching? >> in terms of numbers of people itemize. more likely will itemize under this bill. deduction.e standard first $24,000 of income if ou're a couple, if you're an individual $12,000. you almost double what we have now. of people itemize. about 90% is what we're looking at in the future. you are one of those people that itemize, higher owner, home, live in an area where you are available to ake deduction, the state and local tax deduction, this is

etting a lot of attention from lawmakers. it caps that ability to write off your state and local income sales taxes, property taxes at $10,000. if you live in a big city where property taxes could be $15,000, $20,000, your income that's a very high, lot less generous rate than you could have gotten. on the house side, this was a big issue for those back on november 16th who voted no. republicans who voted no, correct? >> this is an issue that's been time.ating for a long originally republicans wanted to totally get rid of this deduction. raised a lot e more money. olks from upstate new york, from california said, look, this is gonna kill our constituents. vote for it. this is where they landed. you can take up to $10,000 of taxes and choose between your state income taxes or sales taxes. benefit.t a it's a compromise where they

land. us through homeownership and mortgages as well and deductions. change there? >> they've lowered the ceiling, of, for mortgages that are going to be eligible for the deduction.terest this will be on -- will apply to ew homes purchased from now going forward that's now capped at $750,000. more your mortgage is than that, you start to lose that benefit on the ability to educk the interest on your mortgage payments. but for $750,000 or less, you can continue to take advantage that benefit. >> i also have some homework from our first segment, some viewers. from one of them was about impacts to 401k's. impacts could there be in this legislation? are largely untouched. originally they discussed taxing the contributions up front. that was largely unpopular. aarp and o her retirement groups how this is going to change

people save. we already have a problem with people not saving for retirement. off of that ked idea. this is something kevin brady has said he wants to address year. he wants to combine all the different retirement accounts, 401k's, 403b's, into one process. we'll see if they can get that done. retirement is sort of like healthcare. very touchy. going into a e difficult midterm season next year. > one question, impacts to members of the military and veterans. are there any specific provisions that might impact them? >> they were allowed to keep some benefits that other people lost. deduction is a good one. >> what's that? >> normally if i would relocate and the employer did not pay for my moving expenses, i would be able to deduct moving related to work. so if i need to work to alifornia to take a job at another news organization and they didn't pay for that i could costs. some of those

the average person lost that. members of the military kept that deduction. of the are some impact.s about the we split up your phone lines. under $50,000. $50,000 to $100,000. $100,000 if that's your income a year. and then a special line for business owners. so, let us know what your are.ions john's up first in sebring florida on the line of those make under $50,000. >> i got two questions for you. used to ard deduction be 6500. so that's -- are you there? >> yes, sir, john. >> caller: okay. well, 6500. $13,000.hat, that's itemize as well. that's $25,000. o now they're going to cut the standard deduction to give you $24,000.

so that's $1,000 short. 'm for president trump, but i don't know how they come up with this deal on that. low paid ones are gonna come up $1,000 short. wonder if these illegal aliens child income the kred that it rubio come up with? i'll listen to you. >> thanks for the question. davidson, let you start on the deduction side. deduction works the standard deduction is about doubled. exemptions. personal if you have many children, you could see sort of the amount down ou can write off go slightly a little bit. another thing, too, at the very to get senator rubio's vote, they did expand the child tax credit. $2,000. used to be $1,000. refundable.s this was -- rubio wanted to do this all along when the bill was

in the senate. introduced this amendment. other republicans rebuffed him. when they were doing the final group they said we'll give you money thrown this way. it got his vote. there's still at the very bottom of about 10,000 families that see the benefit of this. more middle and upper income income about $400,000 you can get the tax credit. what are your r, thoughts on that? if you could also address, is there anything specifically for undocumented immigrants? not something that i have heard. > i don't think there's any specific provisions related to them or giving them any deductions or anything like that. there could be, but i'm not aware of any. i have not come across any. of the 500 page bill. >> how about the child tax credit? double the child tax credit. $2,000 now for those 17 and

under. you are losing the personal exemptions that you would normally be able to claim for and your your spouse children. so it's going to be really pecific math to see how this works out for everyone. the personal exemptions were more than the child tax credit going to be. so it's really going to depend n every person's specific tax situation. how many children they have. whether they're itemizing. whether they're going to use the standard deduction. we know this mess is going to over the next year. >> as we watched paul ryan specifically talk about tax having thewas big on post card. to say this is what we want you to do your taxes on. you do that under what the final legislation is? can be done on a post card? >> it would have to be a pretty big post card. brady on the house side said on friday after they released the conference report,

card will just have a couple more lines on it. this is not the dramatic of the tack code that they were originally seeking. we still have seven different brackets. it could get a little bit more simpler and that fewer people going to itemize and take that standard deduction. verall this is still a very complicated tax code. i would be surprised if many people are able to file. laura davidson i want to get well.thoughts as lead editorial usa today saying their review of the tax plan tax.s the post card >> this is the issue they have. do simple or do we do fair? those could often be at odds. let's epublicans said have three or four different brackets. the problem there is you end up or low income people paying something that maybe upper middle class person in that same bracket. that's why they ended up doing the seven brackets, which is the

same. they tweaked the numbers a little bit. t wasn't much in the way of simplification happening there. each deduction has a that cares about it, whether that be the moving state on for veteran, or and local tax. it's really hard to get rid of those. why they stay. it was politically too tricky. a reasonases there was why you should keep that in. >> jolene is on that line. those who make between $50,000 and $100,000 a year. good morning. morning. thank you for taking my call. i have a comment. look at the tax plan, when i hear what people it seems about it, that the people at the top got 2.6% i diate tax cut of think it is. and what they're saying is, yes, a tax cut, but we are going to create an environment for the middle class that's

easier for them to earn more money. these people got money given to going to be are able to earn more money. understand there was no hearings on that, no witnesses, no economic specialists came in that is true or not true. i expected to see steve mnuchin this. something about i haven't seen that anywhere. was my comment. do you think there should have been some kind of hearings on specialists there to see what other people think about this? >> two reporters whose job is to cover the hearings, go ahead. democrats complained it was rushed over the past month or so. hearings.s say we had maybe it wasn't after the actual bill text was out, but we did this over the n last year. it's ms of, you know, how going to benefit workers. they do drop the top tax rate.

they top the rates for all of the seven brackets so you percentage in r whatever bracket you fall in. but again, all of the changes on individual side are temporary. after 2025, it reverts back to code for t tax individuals and the way they've ecided to index things in relation to inflation going forward actually will mean that 2025, some people's tax bills would be higher than if we kept things the way they are today. in the immediate future, most people should be seeing a tax cut. there's one group i want to point out that will see tax increases first. $20,000 to s making $30,000 a year. the reason they're seeing pretty drastic tax increases is because of the repeal of the individual mandate. this was the provision of obama everyone needs to have health insurance. people in that bracket typically ere eligible for government

subsidies, for premium tax credit to fund that health care. repeal, individual and people are no longer required to care.alth >> here's kelly waiting in ohio on the line for those who make $100,000 a year. go ahead. >> hi. thank you for taking my call. date we've only heard about the individual deductions that reduced.n eliminated or i haven't heard about what they did on the corporate side. hat deductions have they eliminated and reduced? and then the other question that bill, whatn this tax encourages the companies to bring jobs back? the jobs out of the united states because they only per hour to, .60 you know, people that work outside of the united states, hat's in this bill that encourages them to keep jobs here or create jobs here? >> thanks for opening the door this question. let's start with amanda becker. >> there isn't anything specific

jobs back. bringing they are trying to make the tax competitive for businesses overall. and the idea is that eventually encourage companies to have more operations here, keep rofits here, and that will eventually result in hiring more workers. cutting the corporate rate to companies are at 35% right ow, it will remove that incentive to rebase operations to somewhere overseas that's cheaper. turn out how ill they say is something that we're going to have to see over the years. that is the idea of tying some of these changes on the business side. davidson? >> the corporate rate drops from 35% down to 21%. several et rid of corporate provisions, something called section 199 deduction. break for tax domestic manufacturers. the rational for getting rid of a rate that's 14% lower, these targeted rates

don't make sense. if you were to go through the tax code and scrub it of every single provision corporations can avail themselves of, you can only lower the rate to 28%. that's where you see the deficit spending coming in. losing $1.25 trillion and the mbalance between what individuals are losing versus what corporations are losing. comments. your the house comes in about 35 minutes. you can all send us a tweet. amanda becker, @ italian girl on what the 'm wondering earned income credit is. people earn to get earned income credit. us through the earned income credit? >> that earned income tax credit we were discussing before we came on. this legislation doesn't change. for the lowest income americans. completely unchanged. this is one of the provisions love.ats really benefit goes to our low income

credit. refundable so people can actually, getting spring x refunds in the can see a boost. that's why you see sales of cars.ure, people that may not have cash to couple ddenly have a extra thousand dollar to make those bigger purchases. if this had been a bipartisan reform you probably would have seen some changes there, don't like the with some variation, of course. but they are concerned that there's a lot of abuse there, sh tweaks requiring more identification for people claiming that credit. the 're asking what republican tax bill means for you. you can give us a call. lines by our phone annual income. all special line for business owner. 20-748-8003. we'd love to hear from you. john is on that line for those $100,000 a year in indianapolis. john, go ahead. >> caller: i was just gonna say,

middle income folks really actually get nothing from this bill. i mean, under the scenario where 4, an income family of $2,000 better off. welsh guess what? trillionre to get $1.5 divided out roughly amongst that would america, qual $2,000 a year for that family. all that family's getting really is a loan. have ebt eventually will to be paid by all of us. >> what do you think would have been family. all that the right way to go ab tax reform? sounds like you're not supporting this. >> caller: well, i mean, i think -- that's correct. process where you bring in experts, you know, democrats and republicans to decide what can done. it's obvious that the tax system does need reform. there could have been things that could have been done to boost investments here. just think the process was

slap dash. the example of corker saying, know this n't provision was stripped, that hurried and the haeuft. knowing a not provision was introduced at the last minute. that.ulpable for >> thanks for the call. >> the process was rushed. of the senate vote we got the bill after midnight. midnight.d after >> we'll recall the bill in writing. >> handwriting. conference report came out friday night. they are voting today. elapsed time has between these, when we see what they're going to vote on and they vote. it was a one-sided process. that could kind longevity of this. you saw obama care pass with only democratic votes.

certain e reached points where they needed to do hings to fix it, to bolster it in any way, there's been no bipartisan cooperation to do that because they passed it with democratic votes. i think that we could see the same thing with tax reform. midterm ded into a year. if for some reason the balance not a r shift, this is bill democrats like. it's not a bill they support. t's not a bill they helped write in any way. i don't think that they're going to be amenable to fix things their help is f needed. i can foresee a situation in the they try to undo some of this. >> you are nodding your head. pointed out that everything that affects individuals, as well as smaller in 2026.s expires congress will be faced with a choice down the road. who knows who will be president then. what the makeup of power within congress will be forced to either ote to extend these pay cuts

which could lead to another problem. do we cut welfare programs? taxes instead? it puts lawmakers in a tough spot. vote for a hefty tax increase, but it's also not as responsible. they're trying to figure out how to, make these decisions you know that are long term, but also people want to get every two years. happens in debate 2025 we will be covering that. we want to get your thoughts happening is vote this afternoon in the house and this evening, possibly tomorrow morning in the senate. we have a call from someone who year. under $50,000 a go ahead. alan, you with us? >> caller: yes. >> go ahead. question or comment? >> caller: my -- merry christmas, everybody, before i forget. $16,000 a n is, i get

year basically for social security. to learn how that's going to affect me. 2% increase. a gonna be going in medicare.crease month next t $17 a year. i want to know if it will affect me or not. >> laura davidson? want to start with the caveat that everyone's situation is different. take this as legal advice. folkst lower income group will generally see they can take deduction.d there are a couple tax benefits, older thatif you are you might want to avail yourself of. expense e medical deduction. something that's been on the books for awhile but was

years.d another two lowers the amount you have to spend in medical expenses to be off.to write that depending on how high your medical expenses are, whether standard deduction, there's some options for you. becker you have john on the line of those that make $50,000 to $100,000. >> caller: good morning. i have two questions. for those of us that really ried hard over the last couple years to save and invest and ave seen our investments now grow and want to maybe pull some profits out, what will be the gains changes, if anything, on that so we can portfolios or take some gains from those? nd will there be any impact on capital gains, which is really punitive right now? we talk aboutwhen impact of this tax plan and $1 -- $1.5 trillion over en years and we look at what

happened to the deficit during the last administration where it $10 trillion over eight years. i don't see how people can equate those two. so those are my two questions. >> question and a comment there. amanda becker, i'll let you start. >> in terms of the deficit. increase just be the in the deficit related to this bill. so there could be other reasons go up over theld next ten years. but this bill is expected to add adjusted for economic growth. it's still supposed to be about a trillion. concerned ab the deficit such as senator bob corker, who we said is supporting this, this is an issue. capital gains rate, as far as, i don't know how long olio or you've held investments, that will be part of it. i don't think there should be changes to an pulling out an

investment. rates stay the same. the question is an interesting one because lot of people having anticipationins in of tax reform. even last friday when the final seeing lots ether of growth. people are looking at, is this a good time? happen?oing to lot of ceo's talking about full allows g, which companies to write off the cost of new equipment. new u're boeing, buying machines to buy airplanes or a plumbing business and you want of that can , all be immediately written off. ceo's have said we're going to see our share price nextsignificantly over the couple years. unknown as the bill plays out. lot of decisions for investors are at the forefront here of, is

sell or do i to want to continue and hold on for a couple years to see how this plays out. we've got one more very specific question from our first segment. it was about potential changes if any, to pensions for several carriers. do you know anything in the bill that might impact that? not aware of anything specifically that would affect federal mail carriers. >> i have heard of most and i ons at this point have not heard of one related to that. >> justin in california on the of those making under $50,000 a year. go ahead. >> caller: hi. thank you. laura, i think i heard you say a little earlier hat more people would be itemizing under this bill, under plan.w tax part of the purpose was simplification and that fewer of

need to itemize. i tend to be on that border line. it pays to itemize. sometimes it doesn't. i wonder if you could talk about little bit. i thought fewer of us would need itemize. >> you're correct. should itemize. they are looking -- the goal was about 95% of people take advantage of the standard deduction. exactly that will shake out. estimates from the congressional looks at the hat tax legislation said it will be around 89%, 90%. who are a lot of people have been on the bubble will be making that decision. with the loss of some doesn't make sense to go through the more complicated paperwork. or do you want to take the and call it ation day. >> 89% to 90% passed by the president. what is that today?

>> about 70%. >> randy on the line. randy, go ahead. >> caller: good morning, cspan. individual mandate. i'm 64. at medicare ooking and supplements. now, i -- this is scary. my brother, who is under obamacare. i don't know where he got his information from. he said his supplement will go $80 to $450 a month when brought in.is you said $20,000 to $30,000 income would get hit. about higher income? $55,000 a year. how will that affect me. >> amanda becker? include the does repeal of obama care individual mandate penalty that you pay. mandate is still technically there, but you won't have to pay that fine on your

you don't buy insurance. the effects of that are that about 13 to lead to million more americans being uninsured. lead to premiums rising because the insurance pool changes in terms of the mix of healthy and unhealthy individuals, income levels, etc. would not be surprised if premiums do go up as a result of this. working on a couple of things in congress to mitigate that. susan collins hinged her support for this bill on the promised she has been a couple of votes on different healthcare provisions that would the health care exchanges under obamacare and revent these premiums from sky rocketing for folks. but that is something separate that they need to do. they willconnell said try and do that this week, but yet.as not happened >> we're just days away from a potential government shutdown. that's something that could be

into that. laura davidson, did you want to add to that and what's going to three days e next after we get through the next 24 hours? >> yes. murray which nder is this bipartisan plan to tablize health insurance markets. some draw back from some democrats and their support of this recently after some reports came out that this wouldn't prevent premium increase as much as initially hoped. but this is one thing that could get attached to a funding bill hat's looking to be passed by the end of the week. it will likely be in terms of eeping the government open to get us into january. lawmakers are anxious to get home. there's a lot of different this.s to cram into children's health insurance program. emocrats have talked about to have immigration added to that. those talks have largely fallen apart and become an imposed dead

a -- deadline. there's a lot of pressure on lawmakers to not do that. pressure today from republicans to vote for this tax reform bill. it would be the first major victory for the president if and does sign it. few conversations happening on our social media pages. facebook.com. c-spanwj. the very best part of this bill pisses off democrats. donna said infant gratification price of all of our children and grandchildren. one from ham sandwich. i have a great idea about how we have a tax cut and not bump the budget. ready? don't spend so much. seriously. that's it. you can join in the conversation wj.cspan happens every worning.

a call from barbara making under $50,000 a year. go ahead. i have a question. want to know how is the increase in taxes for the wealthy figure in the difference for people that doesn't work, that don't have a job so they're considered part of the work force for the difference in the taxes. nd also, the -- taking the affordable care out of the premiums that people pay. have a lot of states that have a lot of jobs in the field. so if you're taking money away rom the affordable careact, isn't that going to cause an imbalance in some of the jobs offered under that? so it's going to cause an work force. the >> laura davidson, do you want to start?

>> one thing barbara brought up how taxes for the wealthy help people who don't work. of the ould ask some republicans in congress, they would say look. if businesses are paying less in if wealthier people who tend to own more businesses, hey'll create more jobs and expand their business. if you don't work not out of but because you are disabled or you're staying home with children, that doesn't necessarily help you if there are more jobs out there. if you aren't for whatever reason going to get a job. > amanda becker, anything to add? >> on that side of it, they are - the argument for this on the republican side is that you help out businesses. workers.tually hire that is something we're going to have to see if that happens or not. basically on the business side, most things are based on that assumption. the corporate rate to creating a new deduction for hat we call pass through businesses. these are businesses organized

corporations. you own a business. partnership. they created a new deduction for that. nd then they added a couple layers on that to kind of encourage businesses that hire workers to employ take that deduction. but again this isn't going to be mediate. we'll have to see if it results in more jobs. terms of the healthcare impact, it's kind of the same thing. i'm not sure what rising premiums will do to help sector areas. certain that's something that we'll have to wait and see how that plays out. this -- we aren't going to see dramatic changes immediately. that will playng out over five, ten years. >> john in pennsylvania on the ine for those who make over $100,000 a year. john, go ahead. is the estion is what effect -- i'm a sole proprietor. will it help me as an employer or a business owner

1962. and how much money will i get what r family compared to it is now? and does that -- another state, is , state by that going to affect like state tax?compared to federal i don't know if this is good or bad for sole proprietors. question. >> can i ask what kind of business you're in? lost john. laura davidson, do you want to start? >> depending what john's is, he might be able to take a pass through deduction. deduction for pass through businesses. that's sole proprietorships, llc's, s ip, corporations. this is something that was done o sort of bring some level of parity to the rate cut that corporation are getting. does, soley what this proprietors, if they meet certain requirements. money you ow much make there's a different set of rules.

pay tax on ve to about 80 opinion of your income. there's a 20% deduction. that at your individual rate. if you're on the higher end you'd be paying 37%. you're 22% or 24% rate. it really depends on your circumstances. but this is -- if you're under $415,000, the entire deduction is mostly available to you no matter what your business is. over that there's more restrictions. say a law firm or accounting firm, doctor's office. ou can't use the majority of this deduction unless they do something like hire a lot of workers or invest in capital expenditure. it gets complicated. hat's been one of the criticisms against it. initially republicans said we'll a 20% rate. then they thought people would, nstead of just working for c-span you may become an independent contractor and take rate.tage of a lower

this is where they landed. it's not perfect. republicans are one to admit that. but it's something they needed to do to make sure they weren't pass throughs relative to big corporations. > do you want to pick up where the viewer asked about state and tax rates. >> it still doesn't change state tax rates at all. >> or how they would react to this bill. to lower your tax burden though. you still get to deduct your to e and local taxes up $10,000 if you're itemizing and choose to do that. actually, this benefit for pass through businesses, for llc's, if ietors or i'm just me, an individual and i through business. up to $157,500 i would get to take a straight 20% off of that. that doubles if you're filing jointly. $350,000. and beyond that, if you're sole have a or or you

business, benefit stays out past those caps. way d those caps, the they've set the formula, take the deduction on the kplt of calculated up to the cap, then half of the wages you pay that. it's very complicated. if not half the wages you can a quarter of the wages, 2.5% of capital investment. going to be a big deduction for business owners. small intended to help businesses. it's going to help pass through businesses of all sizes, even they didn't set out to help necessarily. idea is that the top rate you would have to pay would 29.6% i believe. that's still a substantial avings over the 37% you would pay individual. pass through business owners pay ndividual tax rates on their businesses. >> do you think state legislators are gonna look at the changes in the system and

go back and rewrite their own state tax codes and change federal ction to the changes? predictionse of the from some people. beyond he deduction 10,000 would put pressure on state and local governments to taxes.heir i paid more than $10,000 last year in state and local taxes ecause washington, d.c. is expensive. i will now only be able to take $10,000 of that. he idea is that eventually there could be push back among people in state and local jurisdictions that they lost don't want tothey be double taxed on certain amounts. that would have an entire trickle down effect. >> you wanted to jump in? state and we'll see local governments get creative as far as how they structure systems.x they're incentivized to get as much money as they can to run their city or state. they also want to make sure that their residents can get some sort of tax break or

federal on their return. so i heard some people talking look at how hey'll can we maybe structure these contributions as charitable ontributions which are still allowed to be deductible. very complicated, but i think we could definitely see some changes of states looking get revenue and making sure their residents can get a deduction on that. minutes left ten with our round table. davison, amanda becker. taking your calls. e'll get to as many as we can before the house comes in at 9:00 a.m. enry is on the line for those who make between $50,000 and $100,000 a year. go ahead. >> caller: yes. question is on the taxation of social security benefits. in the past, i pay 15% on 0% of my social security benefits. has that been changed in this bill?

>> anybody want to take that? >> the rate structures have been depending where you fall that will be over slightly. in terms of specifically to social security, i don't think straight changes. >> i'm not aware of any change that would occur, other than the taxes that you pay on that and all your other income. know, you might see the rate that you're paying drop depending on ally which bracket you're in. >> ina is in kansas on the line make under $50,000 a year. go ahead. >> caller: yeah. tax bill, it says that people that were by obama to have to have insurance don't have to anymore. now, the seniors, for signing up medicare, are being penalized through the rest of their life. bill is if this tax gonna stop medicare from penalizing the seniors.

laura davison? >> that is not addressed in the bill. gets rid ill does, it of a tax on you if you choose to ot have health insurance and not go to the individual market, or don't get it through your employer. it doesn't address penalties related to medicare. tony, da becker you have a business owner. tony, what kind of business are you in? >> caller: a landscape business. it's a small business. here were different numbers being passed around. t one point we heard 15% for pass through income. has that been settled now in the bill? what is the number? create a pass not through rate in this bill. they had talked about that in versions, in the house. the way they decided to address a pass ead of creating through rate, give you this 20% deduction. single, up e filing to $157,500.

income for your business, your landscaping get to take a straight deduction of 20% off that. if you're doubling doubly, it's $350,000. would be the formula i mentioned earlier that's complicated so i won't verbally. it but it will be a mix of the ages you pay your various landscaping employees, they'll take that into account. any capital investments you make for qualified property. they'll take that into account. they'll start to phase out that 20% deduction on the amount of but e you can use it on, you will get the first 20% on the first chunk of income no what.r >> what was the original reason or setting up the pass through business rate that process? why did the federal government want to do that when they created this? >> pass through businesses have been on the individual side of will remain on the individual side of the tax

code. past, as m over the they looked at changing the tax code, they wanted to give a cut side.e corporate so they're cutting to 21%, the corporate rate from 35%. individual side, it's staying at 37%. the reason they wanted to address pass throughs in some way, they didn't want that of 21% to 37%. that's a big difference. tax code, it's been more analagous. there are a few points off. gap would have grown if they didn't do something to help throughs.ass >> laura davison, when did we start allowing pass through usinesses to file on the individual side? when did that process start? >> so, that's really how they've inception.their they became popular after the 1986. is a great zed this structure. allows for flexibility. ou only have a single layer of

tax. like a corporation would pay the corporate rate on their income nd then when they distribute dividends to share holders, the share holders have to pay tax on that. pass through business you just pay tax once on your individual return. so tricky to it's come up with a way to reduce taxes on them. it's this more fluid flexible structure, unlike a corporation. landscaping his business, it highlights the complexity and trickiness here unclear whether landscaping will be a service business or not. take e not being able to advantage of the full deduction at all income levels. that's something we will see as irs and treasury implement these rules and regulations what happens. here's what it means for businesses. ight now it's not clear how it will affect everyone and who is able to use that tax break. left.t a few minutes byram, georgia.

>> caller: i think they could in the senateotes if they would have also raised minimum wage. think they could have went less than 21%. if it's true that the bottom 47% federal tax, they don't need tax relief. hey need money in their pockets. working poor people wouldn't care if general election paid a o if they were getting raise. that's my comment. thanks. >> amanda becker. status of minimum wage legislation. was there ever a thought to tie or is there aform thought for anything to come up congress?publican >> i'm unaware of tax reform. it would come from the other side of the aisle if there was a push to raise minimum wage. >> there was onecongress? republican indsey graham said if we're going to cut the top tax rates, get rid of the estate tax, let's

15% -- sorry, $15 minimum wage. would have been incredibly expensive and they were -- with the amount they taxes, they did not have the revenue within their $1.5 trillion box they had to work with. that didn't get off the ground. >> lindsey graham didn't have the support for that as well? all.t at he said he was going to introduce an amendment and that didn't happen. dead on arrival. >> harry on the line for those and ake between $50,000 $100,000 a year. go ahead. good morning., $2,000.security tax cut about $32,000. to --appens [ inaudible ]

could it go up 20%? to make sure i got your question. is your question about the cost after tax nsurance reform goes through? is that what you're saying? >> caller: yes. becker, i'll let you start. >> thraes going to depend on a variety of factor. i don't think we can predict how much it will go up. even if you know how much it will go up in the near term, i read into you can that and just apply it to the next number of years to figure it will be. again, there is alexander murray bill that they'll be voting on sometime this week if they tie it to keeping the government open. in the e other measures works that would potentially have an impact on premium prices. davison, a twitter question from jill. what's the carried interest deal funds?dge >> so, carried interest called equity rite tax private of hedge funds. allows you, if you are a fund

for one of these convert ts, you can what would have been tax wage income so that top rate of 37% through capital gains if you to it for a certain amount of time. trump talked about getting rid that hedge ate and fund managers were getting away with murder. the bill addresses it but rid of it. under current law you would have to hold your investment for one year. for ou have to hold it three. in how a slight tweak invested you have to be to take advantage of that tax break. amanda you have doug in staten aisle on the line for those who make under $50,000 a year. go ahead. >> caller: hello. good morning. >> good morning. >> caller: thank you both for thank you for c-span. really astounds me is that people really don't affected rate e of the supposed corporations that are being overtaxed is. f you look at the european

models there, they're all in the high 20s and 30s. rate.s their actual where as, in the u.s. with the rate, with the loopholes, it is less than 20% of what they pay. being regressive tax cut, that's the way i feel. they already if have what is deemed basically 3.94%, they're getting us on the cheap already. hat is going to make them actually expand rather than repatriation 2005 over these overseas and basically what they did was they bought back their stock. they took care of their share holders. cfo, gave their board, ceo, coo's raises. i saw the last number was basically the economy lost jobs. 220,000 you look at ge, i remember not oo far in the recent past they

submitted a 7200 page tax return and got $249 n illion back from us as taxpayers. $6.8 billion profits and they quarter billion dollars back from us. to me, the stock market is businesses are doing well. what's gonna make this actually change? amanda becker. >> i mean, you're absolutely of what could d happen. i think assuming that businesses ill pass down these tax benefits and tax breaks to their orkers by hiring more people, by raising wages is a leap of faith and there's nothing their ng them to use savings to do that. colleague of mine wrote a story calls n several earnings he was on with ceo's of some of the largest companies said we to use this money to buy back stock and make our share holders happy.

about going talking on a hiring spree. i think every business will be different. react orporation will differently. but there's nothing forcing them these ating them to put savings into hiring workers. >> laura davison? yeah. at the very beginning, brought up the effective rate you factors pay once in the credits, it's far less than the 35% statutory rate on the books. kind of the idea was look, we'll a plify this and make it little more honest. you look at some companies who pharma stage, are paying 16% rate. playing field and get rid of specific breaks for certain industries that far less than ay their competitors. retail, for example, pays about hat 35% rate, where as some technology companies pay a lot less. so what they're doing, what a carrot and g

stick approach as far as bringing jobs back here. penalizing you if you spend a lot of your cash overseas and a benefit if you make things here and sell it abroad. that hasn't totally been tried. and there's also a possibility problems in some the system because it was put together so quickly. kevin brady chairman of the ways means even said yesterday this could be an area we need to fix in a couple years. > well, we'll see what happens today with the votes happening in the house. c-span watch on c-span, 2. take you, though, live to the house and also want to thank blockberg tax and reuters for joining us. you back here on sunday. a.m. each member other than the majority leaders and the minority whip shall be limited to five minutes. the chair recognizes the gentleman from oregon, mr.