but when you tell me that steve schwartzman who's making $400 plus million a year can play a lower taxthan a new york city cop, something is fundamentally wrong with our system, jay, and i don't know how we continue on this path. >> i think it is episodic of what the u.s. faces in general, right? i think we have a system, and this is what we've been talking about, trish, you and i for some time, where we are falling behind the rest of the world, right? we have a very proactive asia that china and japan are both moving ahead aggressively. we have a resurgent europe where macron and merkle are coming together. and here in americas we've really been inactive. we have one administration come in, it undoes what the prior administration does. then the next administration comes in and does the same, and the result is no real forward movement. i'll take even the other side of steve's comments about how great this tax cut is going to be. i don't think it's going to be great at all. in fact, i think there's a reasonable chance that a year from now we're going to look back and what has been pitch

committee, mitch mcconnell the grand master of this tax plan the senate majority leader also steve schwartzman of plaquestone is a big advisor for donald trump. on top of that, now we're getting some word i don't know if i believe this that steve bannon may have played a role in this thing and now you'd ask why would steve bannon want to help out the fat cats? remember he's the populous guy, the rebel? liz: can't forget. >> i actually like steve bannon a lot he's personally a decent guy and very smart man but why would he want to do this? well what his associates are saying, pointing out the white house is saying he played no role but what his associates are saying is that he essentially wrote the language, the carried interest language that's in the current bill that says you can keep it if you keep it, you can use it if you hold your investment for three years. that's his "compromise" to make sure carried interest was only allowed to be used for private equity firms and not hedge funds we obviously came back and told mr. bannon's associates that hedge funds don't really use carried interest

where a new york city cop under this new plan, will pay 27% in federal income taxes, and yet, steve schwartzman making $425 million a year pays 20%. something wrong with that. what's going on? >> well, looks like there's still some feet sitting in the swamp right now. this is an absolute big disappointment. i hate loopholes for anybody, and you can't sit here and tell people, and you said it best, how do you tell police officers in new york city that they're protecting lives they're going to pay a higher tax rate than people sitting behind the desk and trading and making oodles and oodles of money, it's wrong, not fair and a heck of a selling and talking point for the other side. trish: if you put a dollar in the market and make money on it, the dollar you about ut in, you should get a lower risk, because they're taking a risk. but they're not taking the risk, they're managing money. as though i said to you, jessica, i want to find the next facebook, let me give you $1,000 and you can invest it the next five years and sure, i'll put that $1,000 to work, say you find that next facebook, and make

steve schwartzman stood next to the president for the last few months. the day after the senate put their version through, steve schwartzman threw a fund raiser for president trump. $100,000 a ticket at his apartment. how does this help the trump voter? i don't know. >>> the u.s. ambassador to the united nations nikki haley is going to show what she calls irrefutable evidence that iran violated the nuclear deal. this comes one month before a january 13th deadline by which president trump has to again certify whether iran is in compliance with that deal. remember he announced in october he would not certify iran's compliance which triggered a 60-day period for congress to decide whether to impose sanctions on iran. congress let that deadline pass with no action. this is all very complicated because the bottom line is this. what nikki haley does could set the stage for the united states pulling out of the iran nuclear deal all together. we're going to bring that to you live when it happens. >>> also ahead, it is decision day. the fcc has voted today on how

i understand that president trump loves that the likes of steve schwartzman suddenly want to hang outre last year steve schwartzman was never inviting president trump to 740 park avenue for a party and thousand now he's throwing parties for him. is this all about president trump's ego? because i don't understand why he would push this when it will not help him get re-elected. >> it's about his delusions. it's about help to get him re-elected? >> it's about the illusion, he doesn't have the agenda. he doesn't understand policy. his instinct is right. the economy is in bad shape. >> the economy is not in bad shape. >> yes, it is, in this sense. we are at the numbers of the last peak before the crisis. we have had a lot of growth in the health sector, a lot of growth in restaurants and hotels and so forth, but we really haven't had sustained productivity and growth in our core goods producing economy. and you can't live on services alone, okay? we still have the highest trade deficit that we have ever had. it is rising again. >> president trump who went after the trade deficit, went afte

was a 100,000 a ticket event and president trump was certainly not friends or colleagues with steve schwartzman before that. he's suddenly the guest of honor at a party he was never invited to before and he likes that. but elise, i want to ask you the twisted of most twisted questions. "vanity fair" has a piece out this week saying there are dozens more lawmakers that could face sexual misconduct allegations in the coming weeks. could that impact the vote on the tax bill if it drags into the new year? if those things come out now, could it impact it? >> i think they're going to be so many more heads to roll yet in the sexual harassment and capitol hill scandal. how directly it's going to impact the specific vote, who knows. but there have been reputable sources saying that to 20 to 40 lawmakers could possibly see their downfall in these investigations are looking into. >> 20 to 40. if you are somebody -- if i'm paul ryan and i want this think to go through, i don't want any of those heads to roll, at least not yet. >> not yet. >> john, thank you. you two, stick around. up next, u.n. ambassador

steve schwartzman wanted his number two man to work with john gray and gray said no way.re? private equity gets a huge hook-up on friday and throw a party for trump on saturday? >> what more is there to be said? i think this is the way the world works. as we all know, unfortunately, president trump, candidate trump also talked about cutting the national debt. he blamed president obama for allowing the national debt to get to $20 trillion. now it is $21.5 trillion. and after the tax bill, it could be $22.5 trillion or $23 trillion. what is he talking about? he talked about eliminating the carried interest, he didn't do it. so what happens is, his friends get in there, they get their hooks into him and he promises to drain the swamp and he's just like every other politician. >> none of these people were president trump's friends before and they didn't vote for him. now it is a gravy train for the super rich. >> it is hard to sort through all the different ways that the bill is going to affect different classes of people. but definitely the carried interest loophole is one s

like i said, steve schwartzman gave 3 million to mitch mcconnell's leadership pac.onations, some will call them free speech. in this case, trish, i would call it approved bribery. >> trish: buying themselves a lower tax rate. we have numbers here. it's not as though it's just republicans. it's not just michigan mcconnell and paul ryan. it's chuck schumer as well. both sides. this is justth beginning of it. if you go down the list, the private equity interesting has given quite a bit of money away. why wouldn't you, ed. if you get a much better tax bracket as a result and you get to treat your income as though it's investment and get to pay half as much, so what if you pay a few hundred thousand or even a few of million dollars. >> congress is never going to close it loophole. the swamp dwellers are never going to fight the hands that feet feed them. i think trump can do it and do it unilateral live there is a code section 707 inside the tax code given treasury wide discretion on how they can deal with partnerships and define partners but in fact service providers. t

even steve schwartzman of blackstone, i interviewed in davos a couple of years ago and people were getting back into russia. he said no. we do not do business in places where we can't trust the rule of law. deutsche bank was sort of the only game in town. you have deutsche who has done it in russia. you've got deutsche on the institutional side lost a lot of money with trump. why would they lend to him again? there's a big difference doing business out of a private bank and an institutional bank. they did it on the other side where they could have been smaller loans. trump on the private side as i understand it was willing to put up collateral, his own businesses, his golf courses, trump tower potentially as collateral. so those are o two different things. >> and to your point earlier that deutsche bank didn't which to give out the information, we don't necessarily think it's wrong that banks preserve the privacy of their clients. >> no. >> in the case where there is a subpoena and investigation, we definitely want banks to cooperate. but generally speaking we don't want our banks giving i

steve schwartzman, a close ally of the president, clocked i want to say $400 million this year. president trump, steve mnuchin, gary cohn on the campaign trail and since in office said carried interest will without a doubt be taken out. it's one of the things that hurt mitt romney when he was running because he came from the private equity industry. carried interest is still in there. >> we did change the holding period. >> you changed it for hedge fund managers, not for private equity, the guys who truly benefit for it. and they always have a longer than three-year holding period. they buy companies just like real estate firms do. so they're being taxed at a higher rate like it's investment income than new york city firefighters and police officers. just this morning with axios, gary cohn said the white house tried 25 times to get carried interest taken out and the hill fought it. by the hill fighting it, that means that there are special interest groups pushing the buttons. who supports, make the argument for me, why carried interest should be in there because the white house j

plus, an exclusive interview with steve schwartzman on how he thinks the tax plan will impact the marketsr money and famed energy trader mark fisher is with us exclusively today. we're talking oil, the markets, and even how he played bitcoin big hour ahead on half-time. we'll see you top of the hour, carl, about ten minutes away >> sounds good, scott, thank you. in the meantime let's get the santelli exchange. hey, rick. >> good morning, carl. you know, i had pat flynn on, portfolio manager, likes to really pay attention to the noninvestment grade high yield, and our conversation this morning was fascinating. nothing that you viewers haven't heard me talk about many times, that there's two huge opposing forces going on with respect to u.s. interest rates. one force is, of course, the fact that our economy is backing up a couple of quarters in a row. it's acting pretty well. today's data aside, even though non-manufacturing wasn't as powerful as it was last month with that 60 handle, 61 to be exact, it was still a good number, so there's a group of investors that lock at the improving econ

steve schwartzman is going to benefit. henry kravitz is going to benefit from this. massive tax break in a last minute amendment on page 38. gene. >> you're so right to hit this. remember when donald trump said carried interest was like getting away with murder, hedge fund private equity getting a lower rate then they create basically a loophole on steroids. the pass through rate, what steve and others like to say is for small businesses, yeah, it could benefit some small businesses a little, but the big cost comes through it helping passive investors well off, wall street investors who get to pay, who aren't running the businesses, who get to pay a way lower rate. that was bad enough. that's why this pass through rate goes 50% to the top 1% and what professor victor fleischer saw in there and what senator merkley is hitting on the floor right now is now they've added a provision that says if you're a publicly traded partnership like blackstone, the largest wall street financial companies who already get carried interest, now you would get this low rate. that even sm

private equity industry or private ek withquity giants e close to the president, turning you to steve schwartzman, who had a $100,000 a plate fundraiser for the president the day after the senate put their version through, who would be making the argument? i can't find a single person to raise their hand and put their name behind it, who is behind keeping this? >> yei have to agree. i haven't heard a single person, including people in the industry, saying this makes sense. there is some nuance in maybe some parts of the benefit, which are more like investment income than wages, taxed slightly differently, but overall, nobody would say this is a sensible policy. unfortunately, i think this is why people don't trust kind of the lobbying, the behind the scenes, not having the important hearing process in doing big legislation. because things like this manage to stay in. we don't know who owns this. we don't know who wanted to keep this in the bill. again, i would broaden it out to we have $1.6 trillion in tax breaks a year. this bill cuts fewer than 400 billion of them. so many are in tact. it is no

it is a benefit to a very few specific people while the private equity managers, including steve schwartzman who co-founded blackstone was a funder of the inauguration, worth more than $12 billion, hosted a fund-raiser for the president a couple of weeks ago. the president promised to close this. why is he breaking that promise? >> i don't think the president is breaking his promise, but this is not a dictatorship, it's a democracy. there are a lot of things that we in the white house would have liked to have seen in the bill that we understand in the democratic process we can't have exactly our way, like the 15% rate. what's going to happen is that carried interest -- >> but this only benefits a few people. he could have said it's a deal breaker but he didn't. he's willing to let it stay in there. >> and this is something that's negotiated with the senate and with the house. you even still wonder a little bit after all of this, is this going to pass the senate, don't you? and so the fact is that navigating this through this process is something that's a historic accomplishment. if this tax

can't somehow, in their fever herb persuit of lowering the top tax-rate from 39.6 down to 37% so steve schwartzman somehow have an easier christmas, they can't find the money. these are working poor families whomake too much to qualify for medicaid and not enough to buy their own health insurance. it is the caricature of the enforcement of the ugliest stereotype of the republicans as an uncaring party passing a bill that is written by and for the richest and most powerful. >> woodruff: david? i'll dial it back a few norms when you get to my position. i'm not opposed to tax cuts. barack obama proposed cutting it to 28%. 27% is not that much lower. i think cutting the corporate tax rate as sweden and all the other countries have done is good for the come and makes us competitive around the world and follows an international trend of people doing this. to me you've got to surround it with other things to help the people. that the what the republicans didn't do. cutting the marginal rates, bad idea. they didn't even simple fy'the rates. what strikes me is how irrelevant -- i went to work at the "wall

lawmakers including mitch mcconnell and kevin brady and paul ryan and donald trump is close with steve schwartzmana lot of political influence here. on top of all that you can make an argument that windows create jobs. neil: the president -- more ceos, wells fargo, share the wealth with workers, if more do that, that could have an effect on not only those workers but the economy. >> the ceos know they won't immediately build a plant, for every -- neil: hand out checks to workers. >> they have to do some pr. bob may have had a plan to do this plant, might have been in the works, most companies plan their capital expenditures. what i'm hearing is not that they are running to start new businesses or expand tax or capital expenditures which means plant plant and equipment but looking at buybacks. in order to counter that, they are going to be handed a chunk. at&t is going to be handed a chunk of cash like there is no tomorrow. stuart: just not the drop in rates but for cash holiday, the tax holiday. >> a wash of money, they don't know where to put it. >> a business expense. >> you don't know how to sp

there's also private equity, you know, steve schwartzman who runs blackstone one of the biggest privatequity firm is close to the president. i mean, that -- it's politics. >> three words. >> but my other point is this: remember what they're gambling on. carve-outs for businesses. private equity, even though i think it's horrible that they stacked it against certain people and made other people winners. a massive corporate tax cut; right? i mean, this is massive. 35 to 21. repatriation of money. if -- they're banking on all of that producing 3.5, 4% growth and getting us out of a jam. now, it reminds me of david. when i was a kid, i covered new york city hall. when he was mayor of new york, and it was right around the time we had a recession and new york had a mini-fiscal crisis. it was just waiting and waiting and waiting for the stock market to turn around. and it did when he was out of office; right? but i'm just telling you. that's kind of what they wanted. >> charlie, three words. follow the money. and that's why you see all of these things still left in there. and i hope you were r

people like this guy, steve schwarzman, made more than $400 million last year, pay less tax, less tax percentagewise than a new york city cop. how do you like that? because mr. schwartzman likes to call the income he earns from his labor an investment. mr. schwarzman, it is not but no one on capitol hill will tell you that or call you out because we can report today mr. steve schwarzman fav more than three million dollars to, wait for it, mitch mcconnell-linked super-pac fund in 2016. private equity industry as a whole, donated to 79% of all senate seats, both sides, everyone. this is non-partisan issue that year. both sides of the aisle. so, effectively, what these guys are doing as congress didn't make it quote legal, would be and should be considered criminal. so you wonder why no one outside of our president, who at least, at one point in time cared about this issue, about this blatant inequality, why does no one bother to address it? because their campaigns are bankrolled by the industry, meaning the swamp is a live and well. ned ryun, ceo of american majority has been digging on this story. he joins us now. ned, i don't want to, i don't want to take away from the