imagine john rawls is not necessarily conservative. so i thought i was dairy -- >> if you don't know what the latest know what her life is good to be, why not everybody have the same tax system they will face rather than determine in advance. >> you spoke about how it is important to have a consumption-based and so for folks in the room who aren't as familiar with that the social taxes as a tax on consumption, but not income investing. can you go into detail about why have any function basis so important? >> basically, in a way like to think about it is it to use the simple formula, product equals consumption plus government services, which is small. if you net out investment it is whatever you do if you invest and make your business activity more productive and having your right off of investment spending is the maximum incentive to make the investment in the first place and also changes the tax base of gdp to purely consumption. economists across the board agreed to get better performance in the economy by taxing consumption and not

john rawls i think it's safe to say, is not necessarily a conservative. anyway, so i thought that was very fascinating. >> if you don't know what your life is going to be why not everybody have exactly the same tax system that they're going to face rather than determine in advance what tax system you're going to face. >> so you spoke a little bit about a consumption base, how it's important to have a consumption base. and so for folks in the room who don't -- who maybe aren't as familiar with that, basically a consumption tax is a tax on income spent on consumption not income that's saved or invested. can you explain or go into a little bit of detail about having a consumption base is so important. >> basically the way i like to think about it is if you just use the very simple formula the gross domestic product equals consumption plus investment plus government services, which is small, forget that and net exports, if you net out investment, you're left with consumption. so what's investment? it's whatever you do that you invest to make your business act

john. >> thanks so much. >>> baltimore's police chief is out. mayor stephanie rawlingslake announced the removal of batt saying the people of baltimore deserve better. he received criticism after the riots due to the death of friends freddie gray. the mayor says she is responding not to the union report but a spike in homicides. >> too many continue to die on our streets. including three just last night and one lost earlier today. families are tired of feeling this pain and so am i. recent events have placed an intense focus on our police leadership. distracting many from what needs to be our main focus. the fight against crime. so we need a change. this was not an easy decision but it is one that is in the best interest of the people of baltimore. >> the deputy police commissioner kevin davis was named interim. >>> severe weather in store for the northeast and mid-atlantic states with flash flooding a major problem in one rural pennsylvania county. emergency teams had to rescue several people from vehicles when water rose quickly after heavy rain spilling over creeks.