BLOGApril 26, 2017

Wheel of Fortune: Where Will Trump's Top Tax Rate Land?

The Trump administration looks to be on the verge of lowering both corporate and individual tax rates. Several percentages have been thrown around, but what will the final number be --- and will it have the intended "trickle down" effect to boost the economy?

Enjoy the complimentary clip or read the transcript for details.

GLENN: All right. Today, Donald Trump is coming out with his tax plan. And 15 percent for corporate taxes. We don't know what the --

PAT: That's good.

GLENN: Yeah, we don't know what the top tax rate is going to be.

STU: Yeah, there's going to be some individual cut as well.

GLENN: Yes. Some individual cut.

PAT: During the campaign, it was -- the top rate was 25, right? Has he backed off that?

GLENN: I'm sure he did.

STU: I think so.

PAT: Probably.

STU: No, I don't think he's backed off of it yet.

GLENN: I don't think they've announced it.

STU: They have not announced it. People are saying that they think it would be better, from a cut perspective than the Paul Ryan plan. The Ryan plan had a 35 percent -- I think it was -- maybe it was 33 percent top rate. So we -- the expectation is it will be less than that. I think Trump during the campaign had a top rate of 25.

GLENN: Is he going to be able to get it passed?

PAT: If he went to 28, that would be great. Because isn't that where it was during Reagan? 28 percent.

GLENN: Reagan. Yeah, 28 percent at the top, and 15 percent for corporate would be a boon to the economy.

PAT: Yeah.

GLENN: Although, I'm not sure that anybody is going to spend that money. I mean, if -- if -- honestly, if they cut my taxes now as a corporation, I would reinvest some of it, but some of it, I would pull off for a rainy day. In fact, I think today, a lot of it I would pull off for a rainy day.

STU: But that has other economic benefits as well, when rainy days come, business doesn't shut down. That's a good thing.

GLENN: Correct. Correct. But it doesn't spur the economy, doesn't create jobs. It doesn't, quote, trickle down.

STU: You know, I would say it does. Maybe not all of it. But, I mean --

GLENN: Some of it would. Some of it would.

STU: Some of it would. It would increase.

GLENN: Yeah. Now, if they decided -- if he came out -- and, again, this is just basic Economics 101. If he would come out and say, "This tax cut to 28 and 15, it goes hand in hand with reduced spending." And I'm not talking about, you know, reducing it back to the spending levels of 2006. I'm talking about a 10 percent -- 10 percent across-the-board, everywhere cut.

Then I would look at that tax cut and, and I would say, "I have confidence that we're going in the right direction." And we have a chance to really spur things on. Because the government is heading in the right direction. The government is recognizing that they're part of the problem here.

Then that would spur on, I think, a massive boom. A massive boom.

STU: I'm looking right now at the tax reform that will Making America Great Again plan from the campaign. $50,000 or less, if you earn as a married couple --

GLENN: This is what he promised during the campaign.

STU: Yeah. So this is I think the fair standard to judge his proposal on. Right? Is it better or worse than this? This is what I would expect from him.

Obviously, it's what he put up in the campaign. And we'll hear it today. But income tax rate, if you're up to $50,000, married filer, 0 percent. Zero.

PAT: Pretty much everybody was doing that.

STU: But that's a good -- to lock that in was good.

PAT: Yeah.

STU: It was done a lot with write-offs and different deductions before. So now from 50,000 to 100,000, all married numbers here, that's 10 percent. If you make $100,000, your overall tax rate is going to be 5 percent.

GLENN: And I will tell you --

STU: Kind of nice.

PAT: Wow.

GLENN: That's a good -- that's a good number to keep it at.

PAT: Uh-huh.

GLENN: That's what I pay God.

STU: Really, should you go more than that --

GLENN: I know what God has done for me.

PAT: Uh-huh.

GLENN: God created, not the roads, the entire universe. And he only asks for 10 percent. Help me out here.

STU: He's also responsible for the crumbling roads and bridges we have today.

GLENN: Right. Right. And the water we continually drink.

STU: Your next 200 grand, you would get taxed at 20 percent. So if you're making $300,000, you're going to pay a total of $45,000 in taxes. So that's, what, 15 percent?

GLENN: Because $300,000 is only 15 percent?

STU: Yeah. And then over $300,000, you'll go to the top rate.

GLENN: This is more progressive than any Republican that I've seen.

STU: More progressive?

GLENN: Yeah. 15 percent is your top tax rate at 300,000?

STU: Well, that's -- that would be your effective tax rate, right? So you're paying 20 percent --

GLENN: Okay. Okay.

STU: So if you make $300,000, you will have to give the government $45,000.

GLENN: Okay.

STU: Okay? Then above $300,000, you would pay at 25 percent, which is the top rate.

PAT: That's not bad at all.

GLENN: That's not bad. That's not bad.

STU: Now, there are other things in here. The big problem for most conservatives is this border adjustment tax thing, which is sort of basically a tariff to try to pay for these other cuts. However, the corporate rate drops as well, as we talked about.

GLENN: What is the border adjustment?

STU: Central. I would just say it's a tariff.

PAT: On Mexico?

STU: On everybody.

PAT: On everybody.

STU: It's a border adjustment tax. We should get an expert on to talk about it.

PAT: On all imports?

STU: It basically -- if -- if we export stuff, it's not taxed. If we import stuff, it is. So it pays a different rate.

GLENN: Okay. So wait. Wait. But that's the corporations?

STU: Yeah, that's the big sticking point right now, which a lot of conservatives don't like.

GLENN: Okay.

STU: However, there is enough in here to like. As we pointed out during the campaign, Trump did not have my favorite tax plan of all the candidates. However, his tax plan was considerably better than -- than what we have.

PAT: Oh, the best tax plan was Ted Cruz, who proposed a 10 percent flat tax, period.

STU: Yes.

PAT: Everybody pays 10 percent.

STU: With the exception of I think the first $40,000 you earn or something like that.

PAT: You seriously can't get any better than that. You can't get better than that.

STU: I did like that. Ron Paul had really good stuff on taxes as well. The other part about this is the capital gains tax, which drops down to -- I think it's -- what is it, 28 now? It goes down to 20 as a top rate. And 15 percent, up to $300,000.

PAT: Again, this will spark the economy.

STU: It would.

PAT: And then are they going to get rid of the estate tax? The death tax? I think they're talking about doing that too.

STU: I think you are right.

PAT: Which is immoral.

STU: If you're single, earn less than 25,000, or married jointly and earn less than 50, you will not owe any income tax. It removes 75 million households, over 50 percent from the income tax rolls.

We've talked about, there are issues with that as well, when you're trying to keep taxes low. When -- when you get to zero, almost no one will change it from zero.

Because it essentially becomes an entitlement to people. When you're making $50,000, you can't say, what, are you going to raise taxes on the poorest?

So it becomes politically impossible to raise those rates. The only person who ever has done it, at least in recent memory, outside of a war scenario is Ronald Reagan, who did raise one of the brackets a little bit. But, still, it's so impossible to actually --

GLENN: See, and I think morally -- politically, impossible. Morally, everyone should have skin in the game.

STU: Right. And that's the idea is, if you're not affected by tax rates, you don't care about lowering tax rates. So you wind up not being able to lower them in the future.

GLENN: And you just say, raise them. I want more stuff. Raise them. It doesn't affect me. Raise them.

STU: However, I would like everyone to have 0 percent. So it's a tough argument there.

GLENN: So would I. So would I. But, I mean, I really think -- you know, everyone should have -- quite honestly, it's kind of going back to property owners. That's the reason why we originally had -- you have to be an owner of property to vote.

STU: Right.

GLENN: Because you had to have skin in the game.

STU: Uh-huh.

GLENN: So I think your voting should be on taxes. If -- if you pay taxes -- I don't care if it's a penny, do you pay taxes? You can vote. You don't pay taxes, you're not voting.

(chuckling)

STU: Even if it's a penny.

GLENN: Even if it's a penny. But everyone should have to pay something. The widow's mite. Why is that story? Jesus asked of the woman, and who had the greater sacrifice? The woman with the widow's mite. Even Jesus asked, got to give something. Got to give something. You've got to have skin in the game.

STU: Waiting for the articles: Glenn Beck advocates poll tax. That's what they're going to --

GLENN: No.

STU: But, I mean, I do understand the concept there.

PAT: This would all be taken care of if we switched to a FairTax. Why don't we go to a FairTax.

STU: No. Don't you dare. Why would you do that?

GLENN: Why would you do that?

STU: We've got a million calls about the FairTax now. I will say, however, many people do pay other taxes, like it's --

PAT: Because the FairTax is the way to go.

STU: -- not just income tax. This is only dealing with income tax here. But it's a good tax.

GLENN: No, I know.

STU: Then you have the four brackets. Zero --

GLENN: See, well, hang on just a second. But people will learn the lesson of the -- what is he calling this? A border adjustment tax. Because you know who that is going to hit, if I understand it right, and I don't think I do --

PAT: It's going to hit everybody who shops at Walmart.

GLENN: Exactly right. That's what I was going to say.

I mean, that's where -- Target, Walmart. You're going for discount prices. They're bringing their food in. They're bringing everything in.

PAT: Everything is coming from China.

GLENN: From overseas because it's cheaper.

PAT: Yeah.

STU: Now, even Cruz had some version of this, if I remember correctly, baked into the plan, although it wasn't nearly as aggressive as the Trump one. It's sort of a way I think politicians like it, because essentially it seems like you're not taxing people. You're taxing those other countries. Like it feels better. It's why people like tariffs. It's why people like those things, because it feels a lot better.

But they would go to ten, 20, and 25 percent, instead of the current seven brackets. It eliminates the marriage penalty, the alternative minimum tax and would give you the lowest rate since World War II.

PAT: Oh, that would be great.

STU: Remember, of course, Reagan got it to a 28 percent flat rate at the very top, which was the lowest.

No business of any size from a Fortune 500 to a mom and pop, to a freelancer living job. The job would pay more than 15 percent of their business income in taxes. So that again is the corporate tax you've heard. He's actually reinforced that one recently, so we're pretty sure that's going to be part of the plan.

PAT: That would spark the economy like crazy.

STU: Oh, my gosh, that's --

PAT: That would be great.

STU: Even the left -- I've heard experts on the left come out and say we need to lower the corporate income tax.

PAT: It's the highest in the world. It's the highest in the world.

STU: It makes no sense the way we do it now.

I think liberals don't want to cut to 15, but even they want it cut. And then no family will pay the death tax.

PAT: What if we went back to a free market economy? I would wonder what would happen.

STU: Probably it would be really bad. People would be hurt.

PAT: Oh, yeah, we would go belly up. It'd just be over.

JEFFY: Hello. Oh, you'd like to get somebody on to talk about the FairTax? Sorry. We're busy, right now.

RADIO

Shocking train video: Passengers wait while woman bleeds out

Surveillance footage of the murder of Ukrainian refugee Iryna Zarutska in Charlotte, NC, reveals that the other passengers on the train took a long time to help her. Glenn, Stu, and Jason debate whether they were right or wrong to do so.

Transcript

Below is a rush transcript that may contain errors

GLENN: You know, I'm -- I'm torn on how I feel about the people on the train.

Because my first instinct is, they did nothing! They did nothing! Then my -- well, sit down and, you know -- you know, you're going to be judged. So be careful on judging others.

What would I have done? What would I want my wife to do in that situation?

STU: Yeah. Are those two different questions, by the way.

GLENN: Yeah, they are.

STU: I think they go far apart from each other. What would I want myself to do. I mean, it's tough to put yourself in a situation. It's very easy to watch a video on the internet and talk about your heroism. Everybody can do that very easily on Twitter. And everybody is.

You know, when you're in a vehicle that doesn't have an exit with a guy who just murdered somebody in front of you, and has a dripping blood off of a knife that's standing 10 feet away from you, 15 feet away from you.

There's probably a different standard there, that we should all kind of consider. And maybe give a little grace to what I saw at least was a woman, sitting across the -- the -- the aisle.

I think there is a difference there. But when you talk about that question. Those two questions are definitive.

You know, I know what I would want myself to do. I would hope I would act in a way that didn't completely embarrass myself afterward.

But I also think, when I'm thinking of my wife. My advice to my wife would not be to jump into the middle of that situation at all costs. She might do that anyway. She actually is a heck of a lot stronger than I am.

But she might do it anyway.

GLENN: How pathetic, but how true.

STU: Yes. But that would not be my advice to her.

GLENN: Uh-huh.

STU: Now, maybe once the guy has certainly -- is out of the area. And you don't think the moment you step into that situation. He will turn around and kill you too. Then, of course, obviously. Anything you can do to step in.

Not that there was much anyone on the train could do.

I mean, I don't think there was an outcome change, no matter what anyone on that train did.

Unfortunately.

But would I want her to step in?

Of course. If she felt she was safe, yes.

Think about, you said, your wife. Think about your daughter. Your daughter is on that train, just watching someone else getting murdered like that. Would you advise your daughter to jump into a situation like that?

That girl sitting across the aisle was somebody's daughter. I don't know, man.

JASON: I would. You know, as a dad, would I advise.

Hmm. No.

As a human being, would I hope that my daughter or my wife or that I would get up and at least comfort that woman while she's dying on the floor of a train?

Yeah.

I would hope that my daughter, my son, that I would -- and, you know, I have more confidence in my son or daughter or my wife doing something courageous more than I would.

But, you know, I think I have a more realistic picture of myself than anybody else.

And I'm not sure that -- I'm not sure what I would do in that situation. I know what I would hope I would do. But I also know what I fear I would do. But I would have hoped that I would have gotten up and at least tried to help her. You know, help her up off the floor. At least be there with her, as she's seeing her life, you know, spill out in under a minute.

And that's it other thing we have to keep in mind. This all happened so rapidly.

A minute is -- will seem like a very long period of time in that situation. But it's a very short period of time in real life.

STU: Yeah. You watch the video, Glenn. You know, I don't need the video to -- to change my -- my position on this.

But at his seem like there was a -- someone who did get there, eventually, to help, right? I saw someone seemingly trying to put pressure on her neck.

GLENN: Yeah. And tried to give her CPR.

STU: You know, no hope at that point. How long of a time period would you say that was?

Do you know off the top of your head?

GLENN: I don't know. I don't know. I know that we watched the video that I saw. I haven't seen past 30 seconds after she --

STU: Yeah.

GLENN: -- is down. And, you know, for 30 seconds nothing is happening. You know, that is -- that is not a very long period of time.

STU: Right.

GLENN: In reality.

STU: And especially, I saw the pace he was walking. He certainly can't be -- you know, he may have left the actual train car by 30 seconds to a minute. But he wasn't that far away. Like he was still in visual.

He could still turn around and look and see what's going on at that point. So certainly still a threat is my point. He has not, like, left the area. This is not that type of situation.

You know, I -- look, as you point out, I think if I could be super duper sexist for a moment here, sort of my dividing line might just be men and women.

You know, I don't know if it's that a -- you're not supposed to say that, I suppose these days. But, like, there is a difference there. If I'm a man, you know, I would be -- I would want my son to jump in on that, I suppose. I don't know if he could do anything about it. But you would expect at least a grown man to be able to go in there and do something about it. A woman, you know, I don't know.

Maybe I'm -- I hope --

GLENN: Here's the thing I -- here's the thing that I -- that causes me to say, no. You should have jumped in.

And that is, you know, you've already killed one person on the train. So you've proven that you're a killer. And anybody who would have screamed and got up and was with her, she's dying. She's dying. Get him. Get him.

Then the whole train is responsible for stopping that guy. You know. And if you don't stop him, after he's killed one person, if you're not all as members of that train, if you're not stopping him, you know, the person at the side of that girl would be the least likely to be killed. It would be the ones that are standing you up and trying to stop him from getting back to your daughter or your wife or you.

JASON: There was a -- speaking of men and women and their roles in this. There was a video circling social media yesterday. In Sweden. There was a group of officials up on a stage. And one of the main. I think it was health official woman collapses on stage. Completely passes out.

All the men kind of look away. Or I don't know if they're looking away. Or pretending that they didn't know what was going on. There was another woman standing directly behind the woman passed out.

Immediately springs into action. Jumps on top. Grabs her pant leg. Grabs her shoulder. Spins her over and starts providing care.

What did she have that the other guys did not? Or women?

She was a sheepdog. There is a -- this is my issue. And I completely agree with Stu. I completely agree with you. There's some people that do not respond this way. My issue is the proportion of sheepdogs versus people that don't really know how to act. That is diminishing in western society. And American society.

We see it all the time in these critical actions. I mean, circumstances.

There are men and women, and it's actually a meme. That fantasize about hoards of people coming to attack their home and family. And they sit there and say, I've got it. You guys go. I'm staying behind, while I smoke my cigarette and wait for the hoards to come, because I will sacrifice myself. There are men and women that fantasize of block my highway. Go ahead. Block my highway. I'm going to do something about it. They fantasize about someone holding up -- not a liquor store. A convenience store or something. Because they will step in and do something. My issue now is that proportion of sheepdogs in society is disappearing. Just on statistical fact, there should be one within that train car, and there were none.

STU: Yeah. I mean --

JASON: They did not respond.

STU: We see what happens when they do, with Daniel Penny. Our society tries to vilify them and crush their existence. Now, there weren't that many people on that train. Right?

At least on that car. At least it's limited. I only saw three or four people there, there may have been more. I agree with you, though. Like, you see what happens when we actually do have a really recent example of someone doing exactly what Jason wants and what I would want a guy to do. Especially a marine to step up and stop this from happening. And the man was dragged by our legal system to a position where he nearly had to spend the rest of his life in prison.

I mean, I -- it's insanity. Thankfully, they came to their senses on that one.

GLENN: Well, the difference between that one and this one though is that the guy was threatening. This one, he killed somebody.

STU: Yeah. Right. Well, but -- I think -- but it's the opposite way. The debate with Penny, was should he have recognize that had this person might have just been crazy and not done anything?

Maybe. He hadn't actually acted yet. He was just saying things.

GLENN: Yeah. Well --

STU: He didn't wind up stabbing someone. This is a situation where these people have already seen what this man will do to you, even when you don't do anything to try to stop him. So if this woman, who is, again, looks to be an average American woman.

Across the aisle. Steps in and tries to do something. This guy could easily turn around and just make another pile of dead bodies next to the one that already exists.

And, you know, whether that is an optimal solution for our society, I don't know that that's helpful.

In that situation.

THE GLENN BECK PODCAST

Max Lucado on Overcoming Grief in Dark Times | The Glenn Beck Podcast | Ep 266

Disclaimer: This episode was filmed prior to the assassination of Charlie Kirk. But Glenn believes Max's message is needed now more than ever.
The political world is divided, constantly at war with itself. In many ways, our own lives are not much different. Why do we constantly focus on the negative? Why are we in pain? Where is God amid our anxiety and fear? Why can’t we ever seem to change? Pastor Max Lucado has found the solution: Stop thinking like that! It may seem easier said than done, but Max joins Glenn Beck to unpack the three tools he describes in his new book, “Tame Your Thoughts,” that make it easy for us to reset the way we think back to God’s factory settings. In this much-needed conversation, Max and Glenn tackle everything from feeling doubt as a parent to facing unfair hardships to ... UFOs?! Plus, Max shares what he recently got tattooed on his arm.

THE GLENN BECK PODCAST

Are Demonic Forces to Blame for Charlie Kirk, Minnesota & Charlotte Killings?

This week has seen some of the most heinous actions in recent memory. Glenn has been discussing the growth of evil in our society, and with the assassination of civil rights leader Charlie Kirk, the recent transgender shooter who took the lives of two children at a Catholic school, and the murder of Ukrainian refugee Iryna Zarutska, how can we make sense of all this evil? On today's Friday Exclusive, Glenn speaks with BlazeTV host of "Strange Encounters" Rick Burgess to discuss the demon-possessed transgender shooter and the horrific assassination of Charlie Kirk. Rick breaks down the reality of demon possession and how individuals wind up possessed. Rick and Glenn also discuss the dangers of the grotesque things we see online and in movies, TV shows, and video games on a daily basis. Rick warns that when we allow our minds to be altered by substances like drugs or alcohol, it opens a door for the enemy to take control. A supernatural war is waging in our society, and it’s a Christian’s job to fight this war. Glenn and Rick remind Christians of what their first citizenship is.

Glenn's Show Prep

Wheel of Fortune: Where Will Trump's Top Tax Rate Land?

Shocking train video: Passengers wait while woman bleeds out

Transcript

Max Lucado on Overcoming Grief in Dark Times | The Glenn Beck Podcast | Ep 266

Are Demonic Forces to Blame for Charlie Kirk, Minnesota & Charlotte Killings?

Here’s what we know about the suspected Charlie Kirk assassin