Trump: There is tremendous enthusiasm for tax reform
President discusses tax and health care reforms in a 'Sunday Morning Futures' exclusive.
This is a rush transcript from "Sunday Morning Futures," October 22, 2017. This copy may not be in its final form and may be updated.
MARIA BARTIROMO, HOST: Good morning. Welcome to the special edition of Sunday Morning Futures coming to you today from Washington, D.C. Just moments from now, my exclusive one-on-one interview with President Trump. I will get his take on everything from tax reform and healthcare to the crisis with North Korea. Thanks for being with me everybody, this is "Sunday Morning Futures."
President Trump has been in office now for just over nine months. And while much of that time has been focused on repeal and replacing ObamaCare, the attention now is on the other big campaign promise, tax reform. With budget plans passed in both the House and Senate, now the path is clear to get a deal done. Earlier I sat down with the President at the White House for an exclusive one-on-one interview. I asked him where tax reform stands today.
(BEGIN VIDEOTAPE)
BARTIROMO: Mr. President, thanks so much for sitting down with me today.
PRESIDENT DONALD TRUMP: Thank you.
BARTIROMO: Here we are in the week that the Dow Jones industrial average just hit 23,000, 5 1/3 trillion dollars of market value created since your election and largely because of this anticipation and hope that your policies will get implemented. Tell us where we stand on the tax plan right now.
TRUMP: We're doing very well. We will -- we had a fantastic vote as you know, and budget is indirectly passed. Now, it is going to go through a little bit of an iteration but it's going to end up I think again doing very well and I think we are going to get our taxes. I think it is going to be -- well, hopefully before the end of the year but maybe much sooner than that. You know, there's great spirit for it, people want to see it and I call it tax cuts. It is tax reform also but I call it tax cuts. It will be the biggest cuts ever in the history of this country. And I think that there's tremendous appetite, there's tremendous spirit for it. Not only by the people we're dealing with in Congress, but for the people out there that want to see something, $5,000 -- almost, it can be $5,000 average per individual per group. And -- so I'm really looking forward to it. Let's see what happens.
BARTIROMO: It could be quite historic. I know that this weekend is the 31st anniversary of when President Reagan last instituted tax reform.
TRUMP: That's right, on Sunday. That's a big deal.
BARTIROMO: That's a big deal, on Sunday exactly. Do you think you have the votes?
TRUMP: I think we have the votes. I think that Rand Paul is actually going to vote for the tax cuts. I think that other people -- you know, we had tremendous enthusiasm this time. Healthcare, I was told was tougher, but it was close. I mean, so far I would say it's not even a contest. And I will tell you speaking of healthcare, I believe we're going to get that also. It will be in the form of block grants to the different states, and it will be a wonderful healthcare. It will be a tremendous healthcare, managed properly in smaller doses where you can really do it much more individually. So I think we're going to get that also in a little bit later probably in three or four months from now. But I do believe we will have that long before the election in '18. As far as taxes are concerned, you see what's happening. It is really doing well, great enthusiasm.
BARTIROMO: Yes, you soured on the healthcare bipartisan plan a bit; right, from Lamar Alexander and Patty Murray?
TRUMP: Well, I have looked at it very, very strongly and pretty much we can do almost what they are getting. I think he is a tremendous person. I don't know Senator Murray. I hear very, very good things, but I know that Lamar Alexander is a fine man, and he is really going to do good for the people. We can do pretty much what we have to do with that. You know, the Secretary has tremendous leeway in the -- under the Obama plans. One of the things that they did because it was so messed up, they had no choice, but to give the Secretary leeway because they knew he would have -- he or she would have to be changing all the time. And we can pretty much do whatever we have to do just the way it is. So this was going to be temporary, prior to repeal and replace. We're going to repeal and replace ObamaCare. And I think we actually have the votes. People are criticizing me for saying that. I think we actually have the votes for that. You know, we were basically one short and I think we're going to have the votes for that also, Maria.
BARTIROMO: Yes, I'm going to ask you about that because even your supporters say, you know, he has fantastic policies. We want to see this through, but the bickering and the feuding actually gets in the way. So obviously the feuding with Senator Corker, I think there's a personal thing going on between you and Senator McCain, do you worry that this bickering and feuding gets in the way of your agenda?
TRUMP: No, and sometimes it helps to be honest with you. So, we'll see what happens in the end. But I think, actually sometimes it helps. Sometimes it gets people to do what they are supposed to be doing and you know that's the way it is. I just want what's right. And I think, for the most part, they want what's right too. So we'll see what happens. But I do believe we have the votes for healthcare at the appropriate time and I think that we're going to have the votes for taxes. And I will say the fact that healthcare is so difficult, I think makes the taxes easier. The Republicans want to get it done. And it's a tremendous tax cut. I mean, especially for the middle class, and especially for business. We have, you know, we're losing our companies. We have companies leaving. And I have to say since I've been elected, that's really stopped. It's really slowed down. There's a tremendous enthusiasm for business in this country so a lot of things have changed.
BARTIROMO: And you see the job creation as well.
TRUMP: It's been so fantastic.
BARTIROMO: If they can't get this tax bill done this year, should they forego Thanksgiving and Christmas? Should they be here if they don't have a bill on your desk by Thanksgiving?
TRUMP: Well, I think they should and I think they will. I think a lot of things are happening unless, you know, it's going to right after that. But I don't even like them leaving, but I will say this, I want to get it by the end it was year, but I would be very disappointed if it took that long. It could be substantially less than that depending on what happens when we send the bill back to the House. You know, they'll send it back and people are going to go and you know, make 200 suggestions as opposed to maybe no suggestions, because it's a great bill. It's going to be a great bill. And we're adjusting. We're adjusting so that there's no way that the middle class doesn't greatly benefit. Every once in a while there's a method under which, you know, it could be that some people in the middle class won't benefit as much as we want them to benefit, and we're making certain adjustments, but I think we're going to have it sooner rather than later.
BARTIROMO: Paul Ryan did an interview this week and said you are insisting that they have a fourth bracket. It is on your insistence that they have a fourth bracket. I know that you are very focused on the middle class, but do you want to raise taxes on the rich for the fourth bracket?
TRUMP: Well he really said that on the basis that I wanted it or was thinking about it because I want to make sure the middle class gets taken care of, so in that way, yes. But actually, we do have four brackets because we have a zero bracket and people aren't including that. So that would make it a fifth bracket as opposed to an eighth bracket on the other -- on the other side, on the other way. I call it our competition, which is the competition of the past. No, I think that when Paul says that -- we may not have that but I would rather do that than do anything to hurt the middle class.
BARTIROMO: But see, that's what I don't understand and I followed your policies really closely. The state and local income tax deduction elimination, you take that away. And then you go to a fifth bracket or a fourth bracket however you want to say it and you get a higher rate for the top earners.
TRUMP: Right.
BARTIROMO: If the top earners pay 80 percent of the taxes, why are you so afraid to cut taxes on the top earners?
TRUMP: I think this, look, you know, I am very happy with the way I've done prior to this in my civilian life, all right?
BARTIROMO: Of course. This is not about this.
TRUMP: Other people -- well, it's about me representing rich people, let's say, representing -- you know, being representative of rich people. It's very interesting to me, Bob Kraft (INAUDIBLE) was very nice. He owns the Patriots. He gave me a super bowl ring a month ago.
BARTIROMO: But (INAUDIBLE) have kids, right?
TRUMP: And he left -- which was very nice -- yes that's right. But he left this beautiful ring and I immediately give it to the White House and they put it someplace, and that's the way it is.
BARTIROMO: How great.
TRUMP: But he said to me -- he's a good man -- he said to me, you have to do us all a favor. Give the tax decrease to the middle class. We don't need it. We don't need it. We don't want it. Give it to the middle class. And I've had many people very wealthy people tell me the same thing. I've had very few say I want more. I want more. They really want to see -- you know, the middle class has really not done very well over the last long period of time. And so when Paul mentions maybe one more category -- which I would rather not have, it may not happen. But the only reason I would have -- and he does say this, he's very plain on what he said, is if for any reason I feel the middle class is not being properly taken care of.
(END VIDEOTAPE)
BARTIROMO: Much more of my exclusive interview with President Trump in just a moment including the President's take on the corporate tax rate, whether the end of NAFTA may be near. Follow me on twitter @MariaBartiromo, @SundayFutures. Let us know what you would like to hear. Stay with us, we're looking ahead this morning on "Sunday Morning Futures," right here.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. More of my exclusive interview right now with President Trump. Moments ago, we heard what the president had to say about individual tax rates, but the corporate rate will be critical. And that certainly will be critical for the economy. I asked him about that.
(BEGIN VIDEOTAPE)
TRUMP: We need a corporate tax down, you know, maybe it's the most important. We have a lot of most importants, but bringing it down from 35 down to 20 percent, that's a massive -- that's the biggest that we have ever done.
BARTIROMO: That's a big deal on the corporate rate, for sure.
TRUMP: It is a big deal for companies, it is a big deal for investment. I think one of the other ones is expensing. You know, when you write something off in one year, as opposed to, you know, over many years, I think that's going to be tremendous. We have so many things in this plan that are going to be for growth. And, you know, your next question is going to be deficits, and I fully understand that and we all understand it and growth. If we pick up one point on GDP that's 2.5 trillion dollars, if you think of it, 2.5. It more than pays for everything. And I think we pick up much more than one point. And I've been the one that's saying we're going to hit three sooner rather than later. Well last quarter, we hit 3.2.
BARTIROMO: Yes.
TRUMP: We haven't been -- Maria, we haven't been there in a long time. It's been a long time. As you know, the previous administration didn't hit it for the year for eight years. In eight years it didn't hit it at all. Here we hit it in, you know, an early quarter from me. And actually, before that it was down in the ones, it was down in the ones.
BARTIROMO: People got used to like one 1/2 percent growth for a long time.
TRUMP: You know, I call up -- I become friendly with leaders of other very, very, you know, large countries. And I would say how are you doing, and they would say we are not doing well. We are not doing well. GDP is at seven percent, GDP is at eight percent. We are not happy. And I'm saying you know we had it at one percent. So I really think we can do much more than a point. Let's see what happens. But one point is 2 1/2 trillion and millions of jobs.
BARTIROMO: Let me ask you about your courting of the Democrats recently. I mean, the reason that I brought up this other bracket is because I feel like the Republicans get bullied by the left, by this whole talking point of it's always tax cuts for the rich. You've been --
TRUMP: Yes. By the way that's an automatic talking point.
BARTIROMO: Exactly.
TRUMP: I mean --
BARTIROMO: So, did you get bullied again? Are you getting bullied again?
TRUMP: I don't think so. I mean, it doesn't seem like it. We just got the budget passed.
BARTIROMO: If you get a fifth bracket --
TRUMP: But here the thing. Schumer, I like Schumer. But before he even knows the plan he says, oh, this is for the rich. He doesn't even know what the plan is and he's screaming it for the rich. He did it with healthcare too. He said this is for the rich, this is for the rich. You're not going to get your coverage. Everyone is going to go into hospitals. It is going to be terrible. The world is coming to an end. OK. He didn't even know what the plan was. That's OK. You know, we're all learning politics; right? And he said that. He says the same thing because I saw him two days ago before he really knew what was happening. He said, oh no it's for the rich. That's an automatic statement. It's like in business, you ask for twice as much. I mean --
BARTIROMO: Right. But you go back with Chuck Schumer.
TRUMP: I do. I do you.
BARTIROMO: I mean, both from your --
TRUMP: No, I've always--
BARTIROMO: Do you think this is helpful in terms of the negotiations?
TRUMP: I don't think it matters. I mean, I really don't. But I met with the Senate Finance Committee. I met with the Republicans, Democrats together right across the hallway two days ago. We had a great meeting. Ron Wyden was their Chairman. We had a fantastic meeting. There's a lot of similarity. They want tax cuts also, Maria. They want tax cuts and they want them as fast as possible. Now, they don't want to say it, and they are saying, oh gee, you know, the middle -- the middle class -- I call them the working people because they are really the working people -- but the middle class doesn't benefit. That's their standard. But they know they do benefit. They are the big beneficiaries. The other thing -- the other big beneficiary is jobs, wages.
BARTIROMO: And that's been your priority.
TRUMP: Well, it's been my priority. And if you look at what I've done between regulation -- I've cut more regulations in nine months than any President has cut during the entire term that they were in. Nobody's cut - -
BARTIROMO: You're better than President Bush, I mean, the federal pages are down 30 percent under your leadership
TRUMP: Well, and by the way, I've just begun because --
BARTIROMO: So there more regulation that are about to come?
TRUMP: -- there's so -- well there's a lot more. I mean, really a lot more. I mean, I think I can double it before it's over. But a lot of it is statutory, we have to give a 90-day notice and then you have to give a 120 day. We've given those notices. I mean, we're going to be doing a lot more. But you look at you know, Keystone Pipeline, Dakota Access Pipeline, these were all dead projects. I approved them in my first few days. I mean, literally in my first few days.
BARTIROMO: See, I think that's why we have a frequent one percent GDP because of the regulation rollback that you did. There were some industries that are not that regulated. I'm wondering what you think about tech right now because you have these companies that are more powerful than ever before. They've got everything, all this data on us. They are selling the data. Should the tech companies be more regulated?
TRUMP: Well I guess some people talk about freedom and other people talk about we want to know who is taking ads or doing whatever, and I would imagine something is going to come down along the line like we're doing right now for regular, you know, whether it's commercial or not, for a normal broadcast company. It will be very interesting to see. You know, that's an argument that's happening right now. It will be very interesting to see -- there's two very distinct views on that. I can go -- honestly, I can go either way on it.
BARTIROMO: Mr. President, who do you want to see running the Fed?
TRUMP: Well, as you know, I've been seeing a number of people. And most people are saying it's down to two, Mr. Taylor, Mr. Powell. I also met with Janet Yellen who I like a lot. I really like her a lot. So I have three people that I'm looking at and there are a couple of others. I'd say, I will make my decision very shortly, pretty shortly.
BARTIROMO: Isn't there a way you can that you can get Taylor and Powell in there because you've got a Vice Chairman opening as well. You can actually put them both in there. Is that in your thinking?
TRUMP: It is in my thinking and I have a couple of other things in my thinking, but I like talent. And they are both very talented people. And it's a hard decision. It's actually a very, very important decision. People have -- most people have no idea how important that position is. That position is actually more -- a lot of people say get rid of the Fed, take the Fed out. The Fed is a very important position. It's also important psychologically, if the right person is in there, a lot of good things can happen. I think I'm doing a good job for business in that way. People are coming into country. You saw what's happened with Foxconn going to Wisconsin. You see what's happening with Apple where they are going to --I said to Tim -- I said to Tim Cook. I said Tim, I want some of these big beautiful plants that I see in China, they have to open in this country. You've got to give me some big beautiful plants. It's happening. It's all happening. The auto companies are coming back into our country, coming up to Michigan again. They're going back. We're not going to be taken advantage of. We were taken advantage of by -- I wouldn't say the company so much but by other countries. We were so badly taken advantage of. As you know we're negotiating with NAFTA and they have an election right now and lots of things, but at some point, either NAFTA will be renegotiated so that it's fair to the United States or it will be terminated. It's very simple. People think that's a very tough statement but it will probably be renegotiated. But if it's not successfully renegotiated so it's fair for the United States, it will be terminated.
(END VIDEOTAPE)
BARTIROMO: Coming up, more from my exclusive interview with President Trump as we look ahead this morning on "Sunday Morning Futures," back in a moment.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. Debate and controversy last week over the phone call that President Trump made. Congresswoman Frederica Wilson who says that she was listening to the call. She accused the president of not showing proper respect. But last week the president's chief of staff John Kelly defended the President in an emotional statement. I asked Mr. Trump about that.
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TRUMP: He is a very elegant man. He is a tough strong Four Star Marine. If you're Four Star Marine, you're -- you've got something special to start off with, OK? General Mattis, General Dunford also, but very few. He was so offended because he was in the room when I made the call and so were other people. And the call was a very nice call. He was so offended that a woman would be -- that somebody would be listening to that call. He was -- he actually couldn't believe it. Actually, he said to me, Sir, this is not acceptable. This is really not -- and he knew -- I was so nice -- I was -- look, I've called many people and I would think that every one of them appreciated it. I was very surprised to see this, to be honest with you.
BARTIROMO: He spoke very well yesterday.
TRUMP: And by the way, I spoke of the name of the young man, and I -- it was -- it was a really -- it's a very tough call. Those are the toughest calls.
BARTIROMO: It's a very tough --
TRUMP: These are tougher than dealing with the heads of countries, believe me. These are very, very hard calls. They are sad and sometimes, you know, the grieving is so incredible. But he's just an elegant man and a wonderful man, and he is doing a fantastic job as Chief.
BARTIROMO: The Congresswoman Frederica Wilson, she said oh, everything he said was because he's just trying to keep his job.
TRUMP: Yes, he doesn't need this job. In fact, he didn't really want this job. He was so happy -- you know, he's a military guy. He was doing this incredible job on the border and elsewhere. You know, he ran Homeland like nobody has ever run it, down 78 percent at the border crossings.
BARTIROMO: It's incredible.
TRUMP: That's before the wall. He was -- there's nobody close. You go to the original first day, there was nobody close to doing the job. And I said I'd like to take you. How would you like it? And it's not that he wanted it. Actually, he would have preferred doing and staying where he was. He's a man that felt it would be important for the country. He does it for the country. He's not doing it for what he wants. He does it for the country. He's a very unusual man. So when she made that statement, I thought it was sickening actually.
BARTIROMO: I just want to ask you before I lose you about the border. And you've said you want a legislative fix for DACA. What else do you need to see in terms of the border? What do you want overall?
TRUMP: Well, we're going to see -- we are working on DACA. We will see if we can get something with DACA. We have to build the wall. We have to -- all you have to do is look at what's happening in Mexico. We have to build a wall. We're going to stop drug trafficking to a large extent. I mean, what's happening with drugs -- and I'll be making a big announcement on that next week -- what's happening with drugs in our country -- and by the way, in the world, it is not like we're singled out, but it's never been like this. And a lot of the drugs come through that southern border and we need a wall. We're going to have a wall. We have to -- I would like to do something with DACA. And we are negotiating right now with the Democrats. We will see if we can come up with a solution. But I can tell you, I and the Republicans are very open to it. We have to get something in return.
BARTIROMO: And last week on this program, we had Prime Minister Benjamin Netanyahu. He commended you. He congratulated you for decertifying Iran in what you did last week. Do you think you're going to get Europeans to support you in terms of sanctions, in terms of not selling technology to Iran?
TRUMP: Honestly I told them -- they are friends of mine. They really are. I get along with all of them. Whether it's Emmanuel or whether it's Angela. I get along -- I really like those people. I told them just keep making money. Don't worry about it. We don't need you on this. You just keep making money. When Iran buys things from Germany, the from France, and from the various you know, by billions of dollars, even us, you know, they were going to buy Boeings. I don't know what's going to happen with the deal. We'll see what happens with the deal. But when they buy those things, it's a little harder for those countries to do something. Would they do it if I really was insistent? I believe they would. I told them, just keep making money. Don't worry, we don't need you on this one.
BARTIROMO: And on North Korea, is our policy with China just about what it does with North Korea or do we have a separate policy with China for something else?
TRUMP: China has been -- I've developed a very good relationship with President Xi. President Xi is now going through his Congress and it's going to be something very soon that's going to happen that gives him something that few leaders of China have ever had. And I'm really good with that. And to be honest, I told him this. I want to keep things very, very low key until such times as he gets that. I want him to get that. I think he deserves it. He's a good man. They have been helping us. They're closing off their banking systems to North Korea. They have cut the oil way down. Now the banking systems we can see because it all comes through here, as you know. The oil you can never really see what's going on, but the oil is way down. The oil is -- they are doing a lot of things.
BARTIROMO: For the first time ever?
TRUMP: For the first time ever. There was a recent article that said I had the greatest relationship of any President the two of us and I think we do. I really do. I don't want to be foolish. He's for China and I'm for the U.S. OK. So we start off with that. But we do have a very good -- I would say an exceptional relationship. And China's really helping us. And with respect to North Korea, look, 93 percent of the things going into North Korea come through China. China is big stuff. I believe he's got -- he's got the power to do something very significant with respect to North Korea. We'll see what happens. Now, with that being said, we're prepared for anything. We are so prepared like you wouldn't believe. You would be shocked to see how totally prepared we are if we need to be. Would it be nice not to do that? The answer is yes. Will that happen? Who knows.
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BARTIROMO: President Trump has taken to social media unlike any of his predecessors. Coming up, what he has to say about that Twitter habit. Plus Newt Gingrich will join us to talk about where the President's agenda goes from here as we look ahead on "Sunday Morning Futures" right now.
(COMMERCIAL BREAK)
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TRUMP: It's such an interesting question because I have friends that say oh don't use social media. See I don't call it tweets. Tweeting is like a typewriter. When I put it out, you put it immediately on your show. I mean, the other day I put something out, two seconds later I'm watching your show it's up. Donald Trump --
BARTIROMO: You're right. We're watching your Twitter feed.
TRUMP: And they're well crafted. I was always a good student. I'm like a person that does well with that kind of thing. And I doubt I'd be here if it weren't for social media to be honest with you because there is a fake media out there. I get treated unfairly by the media. And I have a tremendous platform. I think I have 125 million people between Twitter, Instagram and all of them, and Facebook. I have a tremendous platform. So when somebody says something about me, I'm able to go bing, bing, bing, and I take care of it. The other way, I'd never been able to get the word out.
(END VIDEO CLIP)
BARTIROMO: Yes the President's tweets dominate much of the news cycle since he took office of course and he was answering a question of mine basically saying don't you think some of the unscripted tweets take away from your broader message? I'm joined right now by former House Speaker Newt Gingrich a Fox News Contributor and it is always great to see you, Mr. Speaker.
NEWT GINGRICH, FOX NEWS CONTRIBUTOR: It's great to see you. And I want to commend. This was a great interview. And I think you brought out a sort of calmer more explanatory side of the President. I thought it was very well done.
BARTIROMO: Thank you very much. We're just showing a cover of your book, Vengeance, congratulations on the book. I know that we want to talk about that because you get in here foreign policy and it's a -- and it's a great book. The President has his way of doing things. And you know, I spoke with so many people ahead of this interview, and most people said the same thing. We like the policies. We like where he's going in terms of tax reform. We just wish he wouldn't always step on his message. But he doesn't see it that way.
GINGRICH: No. I think part of it is because he finds it very hard to accept criticism. And he did it, therefore it must be right even if objectively, you know, not too smart sometimes. I think also he has been astonishingly effective with social media.
BARTIROMO: Right.
GINGRICH: Both Facebook and Twitter and I think people underestimate -- a good friend of mine Randy Evans said the other week that in a little while, another year or two, lots of reasonable people are going to start saying, you know, I don't quite like some of the style, but he's really effective. And I think that's what you and he were talking about in this interview, that when you look at the tax cuts, which I think are going to happen. You look at the deregulatory policy which has been amazingly effective. You look at the conservative judges he's getting. I mean, he and McConnell have collaborated. They have had twice as many judges approved so far as Obama got in the same length of time and they are conservative and they are on average eight or nine years younger than the Obama judges. So he's shaping the next generation of the judiciary. All these things are happening in a methodical way. Meanwhile, (INAUDIBLE) Sunni country come to Riyadh. He's about to go on a trip to Asia. He's a very substantive President in a that the noise around him I think sometimes hide.
BARTIROMO: Yes, I think that's very well said. So I know that the judges have been really successful and I know the regulatory rollback has been very successful. We looked at the federal registry, the pages, and the pages are down 30 percent or something. So he's really rolled back. And I think that's part of the reason we saw a 3.1 percent GDP by the way. What about the staff, Newt? I mean a lot of people say, yes, there's some obstructionism going on, on the left. But he's not sending enough names up to be nominated. Is there an issue in terms of getting the staff in place still? He's got half as many players there today than Obama did.
GINGRICH: Yes, look, I think -- I think there are three issues. I think first the Democrats in Senate have been just remarkably destructive and I think unpatriotic in blocking people. I mean, you know, we still don't have our Ambassador to Spain in the middle of a period where Spain is in a real crisis. We have lots of positions at the Defense Department that still haven't been filled. A lot of stuff going on that just the Senate deserves a lot of people being mad at them. Second, I think the administration found that a lot of the people -- unlike Obama who intended to appoint people who had been college professors or had been activists, they are appointing people who are really wealthy. And if you are really wealthy, the length of time it takes you to go through the ethics stuff, the changes, putting, you know, getting rid of your interest -- this has been much longer than it would have been for an Obama team. And then the last was this guy, you know, he wasn't sure he was going to win on election night, so he didn't come into Washington with a whole team, you know, and he's -- I think by next January, he'll basically caught up with himself.
BARTIROMO: Let's talk about the agenda. What do you think of the tax bill? Is he going to be able to get this done?
GINGRICH: Well, I think, yes. My guess is in 90, 95 percent in the future they get a tax bill. My worry is they need to get it this year. I tried to get them to get it by Thanksgiving. I'm a little concerned it slid you know, a little bit but they are going to get a tax cut. I love the other day when the President said at the Heritage Foundation, he'd like it to come by a Christmas present. I can live with that. I think the country should be very upset if they try to leave town without having passed it in December.
BARTIROMO: OK. So if he gets that tax bill done, and he actually is able to cut corporate taxes and cut individual rates, that's a big deal.
GINGRICH: And cut small business taxes.
BARTIROMO: Exactly, the pass-through, 25 percent.
GINGRICH: You are going to have a boom, between deregulatory policy, much tougher trade policy, this process of contracts -- you know, the Saudis alone signed 4 billion dollars in contracts when he was in Riyadh. And then you add to that, you get us down to a 20 percent rate at a time when if you're a potential entrepreneur, you suddenly have a President who loves entrepreneurs. So the psychology, the excitement, the interest in business, I think is going to keep going up. As you yourself pointed out, and I watched you every morning as you described the markets and what's going on, we already have a lot of good stuff happening, and we have a surprising consumer confidence, surprising investments underway. Give us the tax cuts, and the economy will boom next year. If Republicans become the party of prosperity, jobs, and growth as they did with Reagan, with higher take-home pay, I think they will win the election next Fall and we will have stabilized the system for a long time.
BARTIROMO: By the way, we should say that one ambassador that has gotten through, your wife, Callista Gingrich, the new ambassador to the Vatican.
GINGRICH: Yes.
BARTIROMO: Congratulations to her.
GINGRICH: I'm so proud of her. As you know, she had a book too, remember the ladies about presidential wives (INAUDIBLE) teaches 48-year-old American history, and she can't do anything about it. She's very frustrated as an author, but she's very honored to have been chosen by the president. She's a very devout Catholic. So the idea she's going to be with -- trying to interpret Pope Francis to President Trump and President Trump to Pope Francis, I'm going to watch this with enormous interest.
BARTIROMO: Me too. All right, let me ask you about foreign policy and the rest of the agenda. We know what he's tried to do so far. The healthcare, he's so adamant that he's going to get something done. But then there's Iran. Then there's North Korea. There are serious dangerous issues out there. What does the next year look like for this President?
GINGRICH: Look, I think this is the most dangerous period since the Cuban missile crisis because of North Korea. I think the President will continue to increase the pressure on North Korea. And you can see the North Koreans, just sent a letter this week to the Australians complaining because the sanctions are toughening, getting tougher and tougher. I think with Iran, I thought the President was very courageous and did exactly the right thing. He decertified but did not break the arrangement. And he said basically look, the Congress now needs to look at it. The Corker-Cardin bill allows the Congress to have 60 days to look at it. I hope that they're going to do two big things. I hope that they are going to say the Iranians have to allow inspection of military facilities and there's no deadline. They can't haven't a drop-dead moment when they get to have nuclear weapons. I think it was the right direction. We're going to have to do a lot more with Iran. I was delighted when the Treasury Department announced that the Iranian revolutionary guard would now be listed as a terrorist organization. Again, it is a step -- you are watching President Trump gradually adopt a methodical sophisticated tough-minded American policy with people, you know, like Tillerson and Mattis and McMaster and Kelly helping him. And this is a very sophisticated effort to protect America.
BARTIROMO: Real quick on Putin. Putin is now saying -- he's getting involved in the North Korea issue here. He's basically saying he's going to be a mediator between South and North Korea and that the U.S. should not look at North Korea and approach it with boorishness and --
GINGRICH: I love in between assassinating people having Putin talk to us about boorishness. I mean, this is a regime which has routinely assassinated people. But, look if Putin could find some magic way to get Kim Jong-un to give up his weapons in return for a nonaggression pact or something, more power to him. I'm not opposed to anybody who tries to help solve that. It's the hardest problem on the planet. We don't know exactly what's going to work. And I think it is very dangerous.
BARTIROMO: Mr. Speaker, it's always a pleasure.
GINGRICH: Good to be with you.
BARTIROMO: Thank you so much. Newt Gingrich there. It is full steam ahead now for the Republican tax plan. One of the big questions left, will there be a fifth bracket? The President answered that question and we'll bring it to you as we look ahead on "Sunday Morning Futures." That's next.
(COMMERCIAL BREAK)
BARTIROMO: Do you get any sense of this fifth bracket? I mean, if you do a fifth bracket, is that a million dollars, 2 million dollars? What's the number?
TRUMP: I don't think we'll use a fifth bracket. I only will use a fifth bracket if for any reason I feel the middle class is not get as much as I thought they would or as much as they are entitled to. They're entitled to a lot. This is really about the middle class, truly about the middle class and about jobs. And if I feel the middle class is not getting what I want them to get, and that's going to be a lot because I want them to get really a lot, then I'm going to do a fifth bracket which will give them more.
(END VIDEO CLIP)
BARTIROMO: President Trump talking about his tax reform plan. So with House and Senate budget plans now in place, where do we go from here? Let's bring in our panel right now. Brad Blakeman, former Deputy Assistant to President George W. Bush, John Hilsenrath is the chief economics correspondent with the Wall Street Journal and it's good to see you both. Your thoughts on this tax plan John Hilsenrath?
JON HILSENRATH, CHIEF ECONOMICS CORRESPONDENT, WALL STREET JOURNAL: One of the things that really struck me from his comments from the whole interview is the timetable that he laid out. He suggested that they're going to go - - he expects this to happen very fast. A lot of people are saying year end, maybe into next year. He said no, I want -- he wants to move even faster than that and he will be disappointed if it doesn't happen sooner than that. He sounds like a person who is pretty optimistic about the chances of getting this done.
BARTIROMO: Brad, in terms of what this tax plan looks like, will we will able to get this across the finish line even though there's pushback because of the state and local income tax deduction elimination?
BRAD BLAKEMAN, FORMER DEPUTY ASSISTANT TO PRESIDENT GEORGE W. BUSH: I think -- yes, I think we will. And look, we had some good news on the budget. The budget sailed through. We only lost one Republican. But the president knew exactly what was going on in the vote. We didn't get Rand Paul but the President said we're going to get him for tax cuts. We don't have time. Newt Gingrich has said time and time again, even on your show, we better get it by Thanksgiving. Now I'm willing to slide to the 15th of December. It's got to be this year. And then the question is, is it going to be retroactive to the -- to the beginning of January of 2017? That would really be a jolt to the economy. But we're talking about major 31 years in the making for corporate, personal, repatriation of money from overseas. So this is -- this is bold. But I think the President is going to get the votes.
BARTIROMO: In fact, today, Sunday, 30 years ago, 31 years ago was when Reagan did his tax reform so it's a little bit of an anniversary. Jon --
HILSENRATH: I think Maria, we're seeing in the stock market the way the stock market behaved in the past week, that investors are really factoring the likelihood that this is going to happen. I think there was a lot of skepticism in the markets, building over the last few months about whether after everything that happened on healthcare about whether they would be able to get something finished on taxes. The market, the way it is behaving is saying yes, they think they're going to.
BARTIROMO: 23,000 and counting; right? Let's talk about some of the news that I think we had on the Fed, Jon because the President basically ruled out some people in that interview. I thought when I asked him who he wants to see run the fed.
HILSENRATH: I think we won't know until he actually makes his choice but it sounds to me like he narrowed his list from five down to three. We -- he didn't mention Gary Cohn his own economic adviser and he didn't mention Kevin Warsh who was a fed governor who was in for an interview. The three people he did mention were Jay Powell who is a fed governor right now, John Taylor, a Stanford University Professor and Janet Yellen herself to the surprise of many I think a Democrat, he said he liked her very much. It sounds like those are three people that he's narrowed his list down to. That's big news for the market. That decision is going to matter a heck of a lot.
BARTIROMO: Why is -- if it's John Taylor and Jay Powell, what do the markets do? Because one could be Chairman and one could be Vice Chairman.
HILSENRATH: That's possible but these -- people with very different world views, very different views of where interest rates should be.
BARTIROMO: Right.
HILSENRATH: John Taylor wrote a rule called the Taylor rule which suggested that short-term interest rates should be as high as 3.5 percent right now. That could be a blow for stocks. Jay Powell has been on board with Janet Yellen with very low-interest rates but he -- but he has a more deregulatory mindset. So he could get the nod simply because he is more compatibility with Janet -- I'm sorry with Donald Trump on regulation.
BARTIROMO: Real quick on foreign policy, what did you hear on Iran? What did you hear on China?
BLAKEMAN: I think that he's got a good relationship with China. China seems to be exerting the influence needed with North Korea. So I think with Iran, he's getting -- he's getting tough but he's listening to his advisors and being very strategic in the way he's going about the Iran deal.
BARTIROMO: Will the Europeans follow and be in sync?
BLAKEMAN: Well, they better because they have as much to lose as we do.
BARTIROMO: Yes. Because that's what we want to see in terms of these sanctions whether or not the other countries in this deal actually go along with U.S. We'll take a short break. When we come back, more with our panel as we look ahead on "Sunday Morning Futures." Stay with us.
(COMMERCIAL BREAK)
BARTIROMO: We are back with our panel, Brad Blakeman, and John Hilsenrath. You were at the White House yesterday, and you stayed with this past week, and you say that the repatriation part of the tax bill is most important.
BLAKEMAN: Yes, because it's going give an immediate jolt to the economy if we can bring that money back to America in a specific period of time. Then think of the billions of dollars that can come back to this country. Right now you have a benefit as an American company by going to Ireland --
BARTIROMO: Right.
BLAKEMAN: -- at a reduced rate and selling your products back to America and they are taking losses on the American side. So it is a lose, lose all the way around.
BARTIROMO: Same as Mexico; right?
BLAKEMAN: Absolutely.
BARTIROMO: People build their plants in Mexico then sell it all. --
BLAKEMAN: We are doing it to ourselves.
BARTIROMO: Right. We're doing it to ourselves. Jon?
HILSENRATH: There's two factors on the corporate tax plan that I think matters a lot. First of all, is this going to be permanent or is it going to be temporary? If it's a temporary tax cut, then the probability of them bringing this money back and investing it in the U.S. goes down substantially.
BARTIROMO: Yes, not good.
HILSENRATH: The other thing is if they repatriate these profits that are parked in Ireland and the Caribbean, what I want to see happen is what do they do with that money? Does it go into plants and equipment or does it go into dividends and share buybacks? If it goes into dividends and share buybacks then that going to help investors. It will help the stock market keep going up but doesn't necessarily directly create jobs for America.
BARTIROMO: He said both are good. I asked him that actually and we're going to run that tomorrow morning on "Mornings With Maria" on the Fox Business Network, but I asked him that and he said, look, both are good. If they decide that they want to you know, put it into their shares, and buyback stock, look, it's their money.
HILSENRATH: Right.
BARTIROMO: the government can't tell these companies what to do with their money. What do you think about the President cozying up to the Dems? I mean, you know, a lot of people on the Republican side say these people want to impeach him. And yet, you know, Senator Hatch said the other day he's spending more time with Democrats than he is Republicans on the tax bill. What's that all about?
BLAKEMAN: I think it's a great strategy. This is a deal maker. Republicans, if they don't get it, they better get it by now. He's the most transactional President we have had in modern history. He wants a deal. And if a deal is to be had, people are acting in good faith, he will make the deal. And then he'll rationalize it out later in his public speaking and the using of public pulpit. The bottom line is we need generational tax reform. Democrats want it, Republicans want it. It's how we get there.
HILSENRATH: I don't doubt the President's willingness and ability to work with Democrats on something like taxes. What I wonder about is can Republicans and Democrats work with each other in Congress to come to an agreement that's mutually agreeable? You know, I wonder for every Democrat that you bring on board, how many jump ship on the Republican side
BLAKEMAN: Well, the good news is we only need 50 votes.
BARTIROMO: Yes, but will they get the 50 votes? Look at the problems they have had with their own party. But, you know, he's making a clear point of saying that Rand Paul will be there on the tax plan.
BLAKEMAN: But the budget was passed and that was a huge hurdle to tax reform. I happen to believe that there are -- there are Democrats like Heitkamp and Manchin who are going to be much more willing to come to the President's side on taxes and on healthcare.
BARTIROMO: And Senator Donnelly by the way because he won those states, North Dakota and Indiana.
HILSENRATH: Absolutely. What I'm going to say, Maria is looking at your interview and some of our own reporter, stay posted on this because I think everything is going to come at us very fast in the next -- in the next few weeks.
BARTIROMO: All right. We will. Great to see you both. Thank you so much, gentleman. Good to see you. That will do it for us on "Sunday Morning Futures" this morning, I'm Maria Bartiromo. Catch more of my interview, my exclusive interview on "Mornings With Maria" on the Fox Business Network tomorrow morning and all next week on live on Saudi Arabia. Stay with Fox Business Network for that. Stay with Fox News right now. Have a good Sunday.
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