tv Washington Journal Stephen Moore Discusses President Trumps Economic... CSPAN January 26, 2017 2:21am-2:56am EST
journal we talked to stephen moore, and economic advisor of taxident trump, about his in jobs proposal. he is followed by our interview with the editor of the nation. this is just over one hour. comfortable doing that. host: viewers are familiar with stephen moore from the heritage foundation. we are here to talk about trump 's tax plans and specifically a trump is considering cutting the federal budget by $10.5 trillion over the next 10 years. you wrote about this and called it a $10 trillion stimulus plan. why? good to be with you and thank you for c-span. i am a regular viewer p or i was trying to be provocative. the was a press report
trump administration is looking at paying for, the tax cuts and the increase in the military and infrastructure, with offsetting cuts. one thing donald trump said on the campaign is he not only wanted to balance the budget but he wants to retire some of the $20 trillion debt and who could be opposed to that. government spending is not a stimulus to the economy. there are a lot of economists who believe the more the government spends, the better the economy works. i think the evidence is on my side that won you cut the fat and the waste and inefficiency in the government, the economy performs better. reference to that was the late bill clinton years when you had a republican in congress and democrat in the white house, and you had very substantial cuts in government spending and the economy did very well. i was making the point if we
deficitt the budget down and get the taxes and the spending down, i think it would be a very positive thing for the u.s. economy. the: last time you are on program, you were an economic advisor for the trump campaign. do you still work with the trump i havetration? guest: not taken a role to time still getting used to calling it the trump administration. i am just a private citizen right now working at the heritage foundation. i talk regularly with people who have gone into the white house. a great team and i am excited. i think donald trump has done more for the u.s. economy in his first 48 hours in office than barack obama did in eight years in office. orders, theive keystone pipeline, these are very positive things for the u.s. economy. they will bring jobs. more importantly, one thing i discovered a number campaign trail, you go to places like silicon valley and -- here in
washington, d c, wall street, people are doing really well. you go to places like york, pennsylvania, michigan, those people have not seen a recovery. six cents can be a for president and reelected for he has to bring prosperity to these places. host: if you have questions, the phone lines are open. -- host: you can start dialing in. going back to the hills report the trend -- the $10 trillion it over the next 10 years, is based largely on the heritage foundation budget plan that has been released. you obviously work at the heritage foundation there. will be theexpect key things cut by the trump administration if they go forth with the plan?
that people, especially a lot of your friends in the media do not completely get about donald trump, he is a negotiator. his best-selling book was the art of the deal. when trump puts something out there like a 10 chilean dollar number, and he has not done that, this was a media report. let's say it is accurate. when trump does that, this is his opening bid. they will go to congress and congress will probably not take the chilean dollar of budget cuts but it is a way of negotiating and he ends up with significant cuts. what we were talking about is eliminating scores of spending programs you do not need anymore. things like the legal services corporation. subsidies that go back hundreds of years that are probably not necessary anymore.
there are hundreds of programs like that. are talking about moving entitlement programs and programs like transportation and health care welfare programs back to the state. select the state deal with these problems because you get a lot more experimentation. are talking about getting rid of redundancies in the agencies. to we need 46 job creating programs. a report came out, john, by the federal government's own auditors about six months ago. was there wasd nott 160 really in dollars, 160 million, $160 billion a year in erroneous payment. social security, food stamps, that is just wrong, it is just ripping off the taxpayer. go --k donald trump will will be very vigilant, making sure people are getting payments.
dimensions entitlements. donald trump has said he does not plan on touching entitlements. can he achieve the plan he wants to achieve with an opening bid without entitlement cuts? it is not exactly true. this has become a mythology that he will not cut entitlements. of course he is. what are we debating about right now? obamacare is one of the biggest in fourtlement programs years. that will be rolled back and hopefully repealed and we will put in something that makes a lot more sense that will reduce costs for patients. and make health care affordable for people and does not have negative effects on the economy. it is this mythology that he will not cut. what he did say, social security and medicare, the two biggest , national defense, he said we will not turn to those
until we get the economy moving again. i happen to agree with him on that. the american people have been clear what they care most about is jobs and the economy. when you do that, you get more revenue. then maybe down the road we can deal with medicare, which have huge liabilities, no question. host: michael is waiting in georgia for the line for demo that's. caller: you get on tv and talk about tax cut this and task cut that. do you think task that's are a form of entitlement? for the rich? in favor of reducing taxes in very strategic ways. this is really the centerpiece of donald trump us is economic revival land. is the tax package he is now formulating and i think in the
next two weeks, we will see how it shapes up, and legislation, but the one thing i worked on with donald trump was the tax plan. the main part of the tax plan is ringing business taxes down. a significant disadvantage when we compete against russia, china, india, mexico, european countries, because we have the highest corporate tax rate in the world. it puts u.s. companies at a significant disadvantage. our plan is going from having the highest is this tax rates in the world to one of the lowest. we would be at 15 to 20%. i believe if we do that, it is not a tax cut for the rich. for workers.ut a lot of the businesses that have been leaving the united states, steel and auto companies and technology companies, they will come back to the u.s., it will be a more conducive place to do business and that is good for workers. byyou have more investment
american businesses which is what we need, not only will you have more jobs, but you will have workers earning more money, a big issue for americans. with a tax cut benefit the rich the most? there is a business tax cut, which i described. donald trump also wants to reform the individual tax. this has not been reported on. i worked on this with my buddy and the incoming treasury secretary. what donald trump said to us is i don't want a tax cut for rich people like me. i want the middle-class. he said let's try to lower the rates and get the loopholes and credits and all of the special interest revisions in the tax cut. over $1le who make million, they will lose
virtually all of their deductions. they will not be able to write off this stuff. reducedllar of deduction, they will have a tax rate. overall, the amount of taxes they pay will not go down. the middle-class, we anticipate the bill will save the average middle-class family watching this show about $1500 per year. host: peter is a republican, on with stephen moore. caller: i read you in the wall street journal whenever you have a column there. my question is about the federal reserve. i heard president trump say he wanted a stable dollar. every book i read, peter griffith, all talk about how the federal reserve is stealing productivity gains by creatinglass people by
a 2-3% inflation rate every year. according to janet yellen and to percentou need inflation every year to have a health the economy. , all it doesn rate is put people in a higher tax rate. if they get a 2% raise every year, it gets eaten up by the federal government and the .overnment pays back ?hether it is a farce guest: i guess -- i get asked that all the time. i remember 15% or 16%. to buy things before you mark them up again. 2% inflation is a reasonable
estimate. i think most economists agree. donald trump has it right here what you want in monetary policy is a stable currency. what they're worth two or three or four years ago if the dollar retains its value over time. i think we will have a new fed chairman in a year and a half or so. i think it will be a strong dollar. an interesting and happening is if you look at what has happened since the election two months ago, the dollar has been rising. interest rates have been rising and the dollar has been rising. a lot of people ask why. normally, interest rates would be a negative think i will make the case in this instance the rise in interest rates in 50 years is a positive thing.
you see the optimism in the stock market, in consumer confidence, people want to invest again. if you want to invest, there is a rush of people driving of interest rates. in that instance, the demand for credit is a good thing. people want dollars and they have to pay higher interest rate for it. the problem we have, this is the thing people have to think about. guest in theey world? borrowing costs will rise. the deficit will go up because of interest rates.
caller: good morning. this makes me a little uncomfortable because the now sayingundation, obamacare is a disaster. that is not right. i think your guest should come out clean. second, the trump administration is saying they are going to re-create jobs. he is a fraud. he has been a fraud. all about your previous caller taking it very well. i cannot articulate -- guest: i could not quite hear what he said at the beginning about obamacare. host: the history of the affordable care act and whether the heritage foundation had ever supported a program like that. guest: no. never. we do not want to nationalize
appeared we want the private sector and competition. host: how does donald trump proof to that caller he is not a fraud? >> it has been is -- a disaster in every way. a huge blow in the budget deficit. it has reduced employment. you will have to pay these additional costs. costs for thed american families. people saw these 20% increases in their premiums. people cannot afford that. the middle-class is living paycheck to paycheck. we are paying a couple thousand
dollars a year more because of obama care. say trump is a fraud. let's give the guy a chance. let's see how it works. give him a shot. republicans gave obama a shot. it did not work very well. let's see if it works. i will be the first one out there saying we need a change in policy. the american people clearly wanted change. it was very clear in the wantion people want it -- higher incomes and more jobs. after two days, it is a little early to see whether his policies will work or not. of the first actions is putting out a hiring freeze on the nonmilitary parts of the federal government. you mentioned earlier this was pointed out in the washington post story.
the government accountability office exam at hiring freezes imposed by jimmy carter and determined the hiring freezes were not an effective strategy. they had little effect on president employment levels, and the freeze disrupts agency operations and in some cases increased the costs to the government. guest: i do not know about that report. forged very well. this is what is this is due. they do not go higher more workers. we are talking about a united states government running a chilean dollar a year deficit. we have to find every opportunity to cut costs and get rid of waste. surveys show the average american thinks washington waste about $.30 for every dollar that government spends.
i think that is pretty accurate. one way to start trimming back is through attrition, when a federal government worker retires, lower the workforce that way. only a small portion of the federal government. i think that is what the report might have been saying. rid of programs. the main thing the federal government does today is send out checks to people are you will not reduce the cost of that by trimming the workforce. host: jim in north carolina, line for democrats, good morning. caller: good morning. glad you take my call. this is only taxes, these programs, toward the national debt and pay the national debt
down. 3%.acare, they want 35%, thank you. i want to make sure people understand the deficit and the debt. every year, we spend more than we bring in. that has been ranging between half $1 trillion and a trillion dollars per year. the debt is the cumulative of these deficits. my point is, before we can reduce the national debt, we have to get rid of the deficit. we make it worse every year. i agree with this gentleman. one way is through using
american energy. found there is a chilean dollars in oil and gas and federal land. here is a way to reduce our debt . we can allow companies to develop environmentally sensitive federal lands. we can charge the company's money through lease payments, and we can raise to troy dollars for the government and use that money to return cash to return the debt. bar $20nation does not trillion. host: george's waiting, republican. caller: good morning. programted a combined to bill bennett years ago. through and went
the senate finance committee and subcommittee took it up. not. did i would like you to check some numbers and start using them, that are a part of the whole. the plan is for everybody to have an ira, which 30 companies have starting with chile. nothave fdr and you do spend the social security money if the ira fund -- or whatever. understand them $.7 trillion a year. i did a calculation of $45 per week. add 0-18 if it is federal money. it gives you a million dollars in the bank.
i am not sure we will have enough to that extent but i would like you to check those numbers. the second one is, i work in the oil industry and i understand we are putting about $1 trillion a -- you have the effect on the gross domestic property. you take the number of barrels of oil in a particular year times price and you can comment on that. that is the positive effect of the oil industry. we cleaned a lot of things up already. if you would check out those numbers, i would appreciate it. my plan has five parts that we in education savings, health savings, down payment on the house and paying for house, and retirement.
that would fit right in to the positive things trump was doing. guest: love it. inng people putting money social security where they are probably not owing to get money out, why not let them put 10% of the paycheck into an ira account , accumulate the money over 30 or 40 years of working. we estimate the average american would then retire with well over a million dollars. could havee, they much more money than with social security. i love that idea and i think it makes a lot of sense. thinking for people to about and say we should not use our oil and gas in this country, there are almost 10 million
americans in the oil and gas industry. what are we going to do, put 10 million americans to work? we can add jobs in the industry. those are high-paying jobs. year for $100,000 a electrician and construction workers. of course we should those the keystone pipeline. jobs for middle-class americans. the rest of the world is using oil and gas, why shouldn't the united states? , economisten moore and author of five books now. it is about this energy issue and how america can become the energy dominant part of the world. caller: thanks for letting me
talk. my issue is what made america great again, sleep -- slave labor, up 80% of the gross product in the united states. that is what we have been searching for with nafta. cheaper labor. you cannot really pay a person a fair wage to make this economy be great. we stood up. and we lied to each other about certain things when you was on .1 time about the oil. you said it was 25 chilean dollars of oil of land. we get only to chilean dollars of that money? we shouldn't be getting more than half of the money on land on our own government land. that to me is a product we can get out of the ground.
once you start getting the product out of the ground, it is something you can depend on. you cannot depend on running , youd with cheap labor know? that is all i have got to say. guest: let me clarify something. when i said 3 trillion, that is the taxes we can raise your the 25 chilean dollars will be, a lot of the money will go to , excavating and journaling the oil, and the production >> will be a high. you're talking about america being the energy superpower if we do that. the point the gentleman made about low wages, and trade, it is an important one. they think all the jobs are going to mexico because mexico has lower rate -- lower wages.
if we could bring our taxes down as trump was talking about, and we can reduce the regulatory costs in the country, i'm giving a statistic i am amazed by, this is according to the national association of manufacturers. they are a little biased. the cost for regulation is $18,000. that as significantly to the cost of hiring a worker versus mexico and china where you can cut those regulatory costs in half. movement in the united states is not necessarily due to lower wages. it is due to the fact it is so much less costly to do business in china, india, germany. if we could reduce the cost of doing business in the united states, i think you will see a lot of the companies move back likely. you have seen five or six companies.
we are a high wage country because we are a productive country. is more that think we cannot go forward with the most onerous regulations with the highest taxes in the world, and also, changing the attitude in washington, a lot of it is just animal spirit. whether or not you love barack obama, this was not a president who was particularly pro-business. donald trump will be pro-business. he says we will put america first and it is about time. john in new hampshire, the line for independents. thank you for taking my call. one thing i have been sitting here listening to your show this morning, most countries that as oil andtaxes,
havewhich pay no taxes, value added in this country. that is where they make up their taxes.or business so i think it is a tax structure in this country out of sync. it needs to be reevaluated in my opinion. it is a great question and a great point and i'm glad the general been called. there is an issue about whether we should have a border tax. this toot make complicated. my opinion, we have the dumbest business tax system in the world not just because we have high tax rates but also we keep this very simple. we tax what is produced here and then when we sell it abroad,
when it goes to germany or mexico or spain or whatever this could -- whatever country, they have a value added tax. they tax the product when it comes in. in a sense, we tax what we export come -- but we do not expert what we import. i never understood the last part of that. someone explain why we do that. why not tax what we import and. what we export? that way we have american jobs, a lot of those moved back to the united states and we do not have this advantage -- disadvantage in the world. we do not tax anything that comes into the united states. i'm am not suggesting we have that but rethinks -- rethink the way we tax. there is a big discussion about this in washington now. host: good morning. caller: thank you for taking my call. one thing i want to comment on, when we talk about bringing jobs need ae country, we
things. guest: she makes a lot of sense. i made a couple of points. i am of the philosophy, and we need to adopt this as a country, that businesses are not bad, lawyers are not bad, getting rich is not that. good and healthy jobs, you have to have healthy businesses. it is that simple. if the businesses are not here in the united states, i want to make this emphatically clear. i do not favor bribing companies
to come back to the united states. something's donald trump is wheeling it -- building a bit of a club right now when he met with auto executives. if you do not produce in the united states, we will punish you. i am not sure that is the right approach. in we have to get serious this country about how do we make american companies competitive so they can hire more workers. companiesnot have that are profitable and not expanding, you will not get the high pain jobs we want. get richer.body to i want the middle-class to see a pay raise for the first time in 50 years because it is 15 years since the average middle-class family has seen a meaningful pay raise in their paycheck. host: i want to ask you your thoughts on the congressman up to be donald trump's budget director. his outlook on fiscal policy and budgeting in the future? guest: i am just glad i do not
have his job. he is dealing with enormous budget deficits. he will have to try to convince people in the chump cabinet and people in congress, we have got to cut the budget and make sure ae expenditures -- it is difficult thing to do. everyone in washington loves to play santa claus. no one likes the person is trying to restrain them. he is a very good man and he knows the budget. he has been in congress three or four terms. he has been an expert in fiscal policy. cannot --said, we somehow that will make america rich. >> >> "washington journal" continues. host: