Gov. Matt Bevin: Tax reform is overdue

This is a rush transcript from "Your World," November 29, 2017. This copy may not be in its final form and may be updated.

NEIL CAVUTO, "YOUR WORLD" HOST: All right. You're looking at Senator Carper of Delaware, Democrat, not a fan of these tax cuts.

As you know, a lot of Democrats are not. In fact, all of the Democrats are unified in being opposed to these, the 48 of them in the Senate.

Nevertheless, what they're getting ready for is a procedural vote to take this out and allow debate. The clock would start from that moment on, 20 hours. Don't ask me why 20 and don't ask me why they even do this. They just do it.

All right, just follow along. And what they're going to do then is, you add amendments. You want to talk it up, you want to yap nonstop, you are free to. After 20 hours, it's stops and then they can debate, all right, what is the next step? Do we want to vote on this outright, yea or nay?

If it's a yea, then obviously something have to bounce back to the House, compare the various measures. And then we have a tax cut, if it does happen.

To Kentucky's Republican Governor Matt Bevin, who hopes it does happen. He joins us right now.

Governor, very good to have you again.

GOV. MATT BEVIN, R-KENTUCKY: It's great to be on with you.

CAVUTO: How likely do you think it is, Governor?

BEVIN: I think it's likely.

I'll tell you, just the commentary that came a moment ago from Chuck Schumer. When Chuck Schumer sits there with a sad face and says it's a gloomy day in Washington or a sad day in Washington or whatever his phrase was, it's indicative of the fact that he knows where this is going.

I think it's overdue. A lot of commentary about the fact that if something doesn't happen, that it would somehow reflect on the president. Nonsense. I think you saw that today in Missouri. It would reflect very much on Congress.

I think there was an expectation across the board from the American people that something get done. And I think the likelihood is very high that that is exactly what will happen.

CAVUTO: You talk about what people expect or don't expect. And yet you have seen polls on this. And I can relate a little bit to what the president is saying here, that the full story on this, including the math behind it doesn't come out.

A lot of people, many in your own party, Governor, a lot of the senators have been saying, well, we're concerned about this worsening the deficit. Do you think they obsess too much about that?

BEVIN: Yes and no.

I have been saying for a long time we have $20 trillion in deficit. I wish some of these same people had been a little bit worried about the deficit over the last, I don't know, five, 10, 20, 30 years, since 1998, for that matter.

The reality is this. It will probably in the short-term, in the next 10 years, increase the deficit by as much as maybe $1.5 trillion, which is a lot of money. It really is.

CAVUTO: Right.

BEVIN: Depends on who is scoring it, depends on whether you use dynamic scoring or not, whether you assume a vacuum or outside variables. Depends on a whole lot of things.

But no question, almost in the short term, you are likely to see some increase in the deficit. But in the out years, you will see a repayment on that and maybe an expedited one, based on this infusion of capital that is going to absolutely have a positive impact.

We're seeing it in the markets. And whether, as your previous guest noted or not, it may not get spent in capital expenditures. But if not, it is going to be going somewhere. It is going to go into payroll growth.

It is going through payroll increases. It is going go through keeping prices at level because profitability will go up. And who does that benefit? It benefits the consumer on the street. So, repatriating money from overseas, among other things, cutting the taxes that employers pay is good for employees, and that's what America needs.

CAVUTO: But are you troubled by some of these -- in order -- there are deficit hawks. And to your point, they make sense. They were complaining and worried about this.

Some have built in a plan here that calls for tax increases if it turns out that they're that revenue-shy. What do you think of that?

BEVIN: Yes, I mean, nonsense.

I mean, there's some people for whom a time for tax increase is always now. There's some people -- I have often -- we talk a lot about the opioid problem in America -- and not switching gears on you, but, indeed, as I explain to people, so many folks in government are addicted to OPM.

But it's not spelled with an I or an U. It's OPM. It's other people's money.

(LAUGHTER)

BEVIN: And so many people are addicted to OPM.

And we have got to stop this nonsense, this idea that somehow a little bit more of the taxpayers' money is going to fix all that ails Washington. It's not. We need to start to trust the people.

CAVUTO: Well, you raise a very good point, because we are obsessing -- both are -- on this $1.5 trillion in lost tax revenues over 10 years.

No one is saying boo about the roughly 9 trillion additional dollars added to the debt just through sheer spending, but it is what it is. What do you make of that?

BEVIN: Again, I think this is -- that is -- your point is well-taken, Neil.

That's where we need to be smart. Start to get more men and women who have actually made payroll in their lives making decisions in elected office, and you will start to see people minding the dollars more easily.

It's easy to spend other people's money. It's a lot more difficult when it's your own capital that you have earned and you're using after-tax dollars. I think if we trust the people who earn the money, we will have a better ROI on that money than if you send it to Washington or a state capital somewhere and allow an elected official to decide how that money gets spent.

CAVUTO: You're referring to return on investment.

Let me ask you finally about the president and how he's doing with this. You mentioned that, if this fails, it won't be on him. But if -- if it -- you don't want to see it fail. I understand that. But would any of it be on him if it does?

BEVIN: Yes.

Whenever something hits the ground, and there's a splash, anybody around may get some splatter on them. But I'll tell you, it will reflect primarily on who it would be that would drop this. And that would be the U.S. Congress.

I don't think they're going to.

CAVUTO: All right.

BEVIN: I think they have the votes. It came out of the House. The Senate is doing the work they need to do.

You can tell by the optimism and the dismay on the other side, they have the votes to get this done.

CAVUTO: We shall see.

Governor, thank you. Very good seeing you again.

BEVIN: Thank you, sir.

END

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