'How good were you with math?': Glenn confronts Mike Lee on his controversial tax plan

Senator Mike Lee helped co-author the controversial tax plan presented by Senator Marco Rubio and Glenn confronted him on the facts today on radio. Glenn, who has been one of Lee’s most vocal supporters, asked him if he was as good at math as he is the law.

GLENN: So yesterday, we read the Rubio Tax Plan, and we think it's butt ugly. However, the Easter egg, as we called it yesterday, was -- the co-sponsor was Mike Lee. So that got us scratching your heads, because we know Mike Lee. And maybe the brilliance of this is it only looks butt ugly, and that's the genes you, because all the Democrats will say this is butt ugly if you are conservative. Mike Lee is smarter than we are. We are missing something. Please tell me that is the case, Mike Lee.

LEE: That is absolutely the case. Thank you for having me on the show. It is hard to get people's attention when introducing a tax plan --

GLENN: Oh, no. Not on America's "Charity Day", when we all feel so very charitable for all the money we gave to the charity called the government?

LEE: Right. Right.

PAT: What are we missing --

LEE: Charity does not take money from people at the point of a gun. Look, our current tax code is bad, okay. It consists of tens of thousands of pages, together with implementing regulations. The current tax code discourages work, savings, investment, new business formation, marriage, and even having children. That's bad. So what we are trying to do is offset that.

I agree with what you were saying a minute ago. It would be great if we had a single rate system. What was true for Malachi ought to be true for government. There ought to be one rate. The problem is you can't really get there from here. You can't really go from a seven-rate system to a one-rate system without raising taxes on a lot of poor and middle class folks.

So we want to simplify the code and do it in a way that's pro-growth and pro-family and offsets the penalties against the very things the government is discouraging right now and ought not be discouraging any longer.

PAT: How did the Russians do it?

LEE: I'm not really an expert in Soviet tax policy.

GLENN: Maybe you should ask someone in the Obama administration. They know all about the Soviets.

PAT: Seriously, this a tax increase for people -- we were figuring about $116,000 to $600,000 some, an increase for them, right?

LEE: No. That is a distortion brought about through the media

PAT: We were looking at it, thinking it looks like an increase.

STU: I know there's more deductions in there, so how do you get rid of that? Seems like the people in that group would pay a little more by the basic numbers.

LEE: The other overwhelming majority of them would not. 80% of all Americans would pay under a simple rate. You could call it a flat rate of 15% under the plan. All income learned below $75,000 by single filerswould be taxed a 15% under this plan, subjection to two deductions.

Then all income below $150,000 for people filing jointly, married, would be taxed at 15% also. We think it is a huge improvement over the status quo, because we don't think your taxes should go up significantly just because you get married. And right now, that is true. Today, some of hat income below $75,000 for singles and below $150,000 for joint filers is taxed at 25%, not under 15% rate, as it would be under our plan. Importantly, and I think it has been misrepresented in the press on this point, is that your tax bill wouldn't jump to 35% on all of your earnings once you make $151,000. Instead, you would pay 15% on $150,000 and 35% of the marginal $1,000 over that level.

GLENN: Can I ask a question? You are saying that we are worried about you are going to raise the taxes on a lot of people paying at the lower end. So you've got a 15% flat tax there, right?

LEE: Yes.

PAT: Two rates.

GLENN: So why don't we do one 15 and one 25 over 150?

LEE: That would been one approach, but as we have run the numbers, we think it is the best way of making it work in a way that doesn't add unduly to our deficit.

This is a work in progress. Rome wasn't built in a day, we are open to all kinds of suggestions. We are open to considering something like that. We weren't able to make the numbers work the first round when we put it together.

But this is still a big tax cut. This is still a $1 trillion tax cut, and that's putting it conservatively. Some would say it is more like a $4 trillion tax cut. This is a very aggressive tax cut, a Reagan-esque type of tax cut. You could say a lot of things about it, but you can't call a tax hike, under any interpretation, any form of mathematics cannot call this --

GLENN: You are so good with the law. How good were you at math? I just want some assurance here, because I trust you, Mike and I like you, and you are really truly one of the good guys, but we are look at this and we just don't see this the same way. We are trying to figure this out.

STU: I'm sure you have accounted for this. But looking at it from the surface, right now, there's a 35% bracket, which kicks in at $411,000 before you start paying that. Now that same rate kicks in at $75,000 with your plan. That is a significant change. I understand the rate below 75,000 for some people will be lower, but that's a big change. You are getting hit with a high rate at $75,000.

LEE: Well, that first $75,000 or first $150,000, if you are married and filing jointly, is never taxed at 35%. It's taxed at 15%, and a --

GLENN: But at $76,000, if I am single, I am paying 35%.

LEE: Yeah. I've got lots of charts and things I could show you, if we were there, but the overwhelming majority of people would not see any tax increase on this, and for most Americans, this would be a very significant tax cut. As important as anything else, it is a tax code simplification. We have to remember, complexity is a subsidy for lawyers and for accountants, for lobbyists and for people who make their business the process of contacting and influences government.

So there are no easy fixes here, but part of the beauty of this plan is that it would dramatically simplify the tax code. It is pro-family, pro-growth, and this is a tax cut plan Reagan would be proud of.

GLENN: Tell me about businesses.

LEE: On the business side, we lower the rate quite significantly down to 20%. We look to a single layer taxation system, and it's at 25%. It's a business tax rate of 25%. We get rid of the double taxation that's in our existing code on the business side by eliminating taxes on capital gains and on dividends. And so we think this is incentivizing all the right things, incentivizing investment and business formation. And overall, it's diminishing the disincentives, the penalties the government is currently putting in place on getting married and having children.

We don't think the government should be involved in those decisions. It shouldn't. And it currently is, and it is punishing the very people who are building our society and getting married and having children. We shouldn't be doing that. We also shouldn't be disincentivizing people from forming businesses.

STU: Seems like every conservative that has looked at this plan loved the business side of this. It really does look like it is a role pro-growth plan and would really help people not only in corporations, but also LLCs and things like that, correct?

LEE: Yes. And it would also be very, very helpful to growing small businesses. It would allow for immediate full expensing to provide tax relief for grows small businesses. So look, Americans, all Americans, will end up being wealthier on this. They will end up having more disposable income, end up with a lot for economic growth as a result.

I'm not saying it's perfect or the kind of plan I would design if we were designing a tax plan ab initio. We have to start

with the government that we have, rather than the one that might have been, had we more sanity in your government over the years.

STU: Real quick, before Glenn comes in with a much smarter question, I'm sure. Reading the way it's structured, it seems to me that what you are doing here -- and there's a lot of good things. The business side is good. I think the vast majority of people, individual earners would pay less under the plan. Not just the majority, but the vast majority would. Is there an element, though, where you are saying let's be honest. Every time we introduce something like a flat tax, they come out, beat it up, say it is a tax cut for the rich. So if we let some of the rich get hit at little bit, we are shielded from that and maybe we can kind of get a bunch of good policy in, but not the whole thing. Is that --

LEE: No, that's not the motivation here, nor is it an accurate description of how this operates in any objective way.

The reason is, first of all, when we get rid of the double layer taxation from the double taxation by eliminating taxes on capital gains and dividends, that by itself is opening up -- us up to a huge amount of attack from the left that hates this. They also hate the fact we are levering the playing field between big and small businesses. What we want is fair competition, instead of cronyism. What we've got now is cronyism. When we have fair competition, that creates millions of new jobs.

GLENN: But the only way you only have fair competition is to be flat.

LEE: That is a very fair point, Glenn. Again, I can't emphasize enough I would prefer a single flat --

GLENN: Because this is what you said. We can't get there from here. And I understand. I really do understand, you can't change a tire going 150 miles per hour. And so I get that. But, you know, Woodrow Wilson, FDR, Johnson, Barak Obama, they all gave us the biggest tire changes at 150 miles per hour this country has ever seen on our side, on the conservative side. We had Abraham Lincoln and Ronald Regan. That's it. Calvin Coolidge. That's it. Why is it we are so afraid of standing up and talking common sense and saying you damn right, if the Soviet Union can figure this out, we can do it. If the Marxists and the communists realize that this was a better system, then why can't we? When you look -- I don't remember the number, and I'm sure you know it, like 17.9 or 18% that's the number, no matter what you do to the rates you always collect about that much. So why aren't we just targeting that number?

LEE: Right. Well, again, I would love to go to that kind of system. On average we are able to collect about 18% of GDP through our income tax system. That seems to be a relatively constant figure, regardless of how high you set the top marginal rate, but again, what we are looking at here is the biggest simplification we can get, and one bit eliminates a lot of the --

GLENN: But may I ask you -- and Mike, you know I love you, right?

LEE: I do. And I appreciate that.

GLENN: I respect you. We all respect you and love you.

We are just so frustrated, because if people in Congress would have used and rightly so, and it's not too late -- if they would stand on their desks and shout at the top of their lungs, the IRS has become a weapon against the American people. You could redo it, because you could shut it down. There is nobody on the right or the left except for those in power, that want the IRS to become a weapon. And you have the best shot of shutting the IRS down and cleaning house right now than you have had in 100 years.

LEE: That is a very fair point, and that is exactly why we all ought to be reforming government along exactly the lines I describe in my new awesome book,Our Lost Constitution: The Willful Subversion of America's Founding Document.

PAT: Nice.

GLENN: Whoa. Man, a week on the radio tour, trying to sell your book. You got good. That was good.

LEE: That stuff doesn't go -- it just flows from the lips. If we have to choose between two rates and tax fairness for working parents, or on the other hand, a one rate system that raises taxes on all families, I think we have to go with the two-rate system. That is fair. That is conservative. This is Burkean conservatism. You are taking a set of contemporary problems and dealing with them in a practical way.

PAT: You just said A 'Barack Obama' false premise there, Mike. I don't think those are the two options, are they? Can we not work it out where it's fair for working families and -- the wealthy are working families, too, by the way.

LEE: Under the current system, we can't work it out that way, because the current system really does punish people for getting married and pushing them for having children.

GLENN: You know why?

LEE: - interacts with your senior entitlement program. There's no way that you get out of having children without a huge penalty through our tax system. The parent tax penalty is something the mainstream media goes out of its way to obscure, and this is a proposal that finally addresses that, in a way that none other does.

GLENN: Because, Mike, with those penalties are there, because it's a -- say it with me -- a Progressive income tax. So maybe we should stop trying to play in the Progressive field. I have one question for you, when we come back, if you could hold for a second. I have to take a break, then I ever one question for you, then we'll cut you lose.

Featured image courtesy of the AP

The Senate Judiciary Committee was set to vote on subpoenas to compel Twitter CEO Jack Dorsey and Facebook CEO Mark Zuckerberg to testify on alleged censorship and bias across their platforms. But that all changed when Republican committee members "expressed reservation about the maneuver," Politico reports.

Sen. Ted Cruz (R-Texas), who chairs Judiciary's Subcommittee on the Constitution, was definitely not one of the committee members with cold feet. On the radio program Tuesday, he told Glenn Beck that he's fighting "vociferously" to ensure Dorsey and others testify before the November 3rd election.

"Jack Dorsey and Mark Zuckerberg are both going to testify. They're are going to testify in person. They're going to testify before Election Day. That's what I think should happen," Cruz said. "That's what I'm fighting vociferously to happen. Right now, the companies are negotiating with the chairman's office to discuss terms to come voluntarily. I don't give a damn whether they come voluntarily or under subpoena. They need to testify in person and answer questions for the American people about why they are trying to steal this election, to suppress the free speech, and to censor the press."

The subpoenas would require Big Tech leaders to testify on the alleged "suppression and/or censorship" of two consecutive blockbuster stories from the New York Post. The first story was about emails that allegedly came from Hunter Biden's computer which are currently being investigated by the FBI, and the second was based on additional emails that allegedly showed communist China directly offering millions of dollars to then-Vice President Joe Biden.

"Big Tech stepped in, and they've done something they've never done before," Cruz explained. "We know that Big Tech has been censoring individual conservatives, trying to suppress conservative speech. But the step they took here is, they blocked if any individual user tried to share either of the New York Post stories, [they] were blocked ... Sharing a news story, from a major media outlet is part of democracy, part of free speech. And not only that, they blocked the New York Post itself. Right now, today, the New York Post is not being allowed to post its own damn stories on corruption. This is ridiculous. It's a threshold that's never been crossed before, of Silicon Valley oligarchs declaring the authority to determine what the press is allowed to report, and who is allowed to see it."

Watch the video below to catch more of the conversation:

Want more from Glenn Beck?

To enjoy more of Glenn's masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution and live the American dream.

If we learned nothing from the media over the past 4 years it's that colluding with a foreign entity to either win an election or for personal gain is absolutely grotesque. Well, that depends on whether you have a (D) or (R) before your name anyway. President Trump was impeached on rumor and innuendo yet Joe Biden has all but skated on his corruption up to this point.

Below is a timeline that shows the level of corruption and the lengths the Biden's went to in order to build that family's wealth and influence internationally.

2009

In 2009, Joe Biden was the brand-new Vice President and John Kerry was a U.S. Senator. Just five months after Joe was sworn in, his son Hunter, and Kerry's stepson, Christopher Heinz, formed an international private equity firm called Rosemont Capital. It had several different branches, including one called Rosemont Seneca Partners.

2010

Just nine months after Rosemont Seneca opened its doors, Hunter Biden went to China for meetings with executives from China's biggest banks, and its sovereign wealth and social security funds. That's unheard-of access for a brand-new firm. Was it just coincidence that at the same time Hunter was meeting these Chinese bigwigs, his dad was meeting with China's then-president Hu Jintao in Washington DC at a nuclear security summit?

2011

In May 2011, Joe Biden met with Chinese officials for the U.S.-China Strategic & Economic Dialogue conference in Washington. Just two weeks later, Hunter Biden went to Taiwan for meetings with the same Chinese financial giants he'd met in China in 2010, plus some new ones.

2013

By December 2013, Joe Biden was enjoying his second term as VP, and John Kerry was now Secretary of State. That's when Joe traveled to Beijing on an extended official trip and Hunter traveled with him on Air Force Two.

During their stay, Vice President Biden met with President Xi and Hunter was mostly out of sight. We don't know exactly what he was up to, but the deal finalized between Rosemont Seneca and the Bank of China just ten days after the Bidens' trip pretty much gives it away. The most powerful financial institution in China formed a joint venture with tiny Rosemont Seneca to create a giant new investment firm called Bohai Harvest RST – the "RS" stands for Rosemont Seneca.

The firm is often called "BHR" for short.

Hunter Biden was a member of the Board. Remember, the Bank of China is government-owned, which means its business is completely intertwined with the goals of the Chinese Communist Party. BHR also got the freedom to operate in the newly created Shanghai Free-Trade Zone where, over the next six years, it would use $2.5 billion of Chinese government money to invest in China, as well as in other countries, including the U.S.

During their Beijing trip, Hunter also introduced Jonathan Li to his dad. Li is Hunter's business partner – he's CEO and Director of BHR.

Hunter arranged for Joe to meet Li in the lobby of the hotel where they stayed during their Beijing trip.

2014

In 2014, one of BHR's first major investments was in the China General Nuclear Power Corporation.

CGN is a Chinese government-owned nuclear power company that sold off a stake of the company to outside investors. Problem is, CGN was under FBI investigation for paying informants in the U.S. to steal nuclear secrets.

In 2016, the FBI arrested the ringleader of this nuclear espionage, a man named Allen Ho.

When they arrested Ho, he was using a random code generator to access funds being provided to him from – where else? – the Bank of China.

Yet while this FBI probe was going on, the son of the Vice President owned a stake in the company being investigated. And even after arrests were made, Rosemont Seneca did not alter its relationship with BHR, nor did it divest from CGN, even though it was stealing U.S. nuclear secrets.

2015

In 2015, BHR partnered with the Aviation Industry Corporation of China (AVIC) to buy an American company called Henniges for $600 million.

AVIC is a gigantic military contractor in China – think Lockheed Martin – that makes fighter jets, bombers and drones. BHR bought 49% of Henniges and AVIC bought 51%.

Henniges is a precision parts manufacturer specializing in anti-vibration technology. The stuff they make is known as "dual use" by the U.S. State Department, which means the technology can also have a military application.

Because of that, the deal had to be approved by the Committee on Foreign Investment in the U.S. (CFIUS) since it could have national security implications. The thing is, the American side of BHR – meaning Hunter Biden and his pals – had to know there were serious national security implications with AVIC.

The year before they formed a partnership with AVIC, the Wall Street Journal reported how AVIC stole technology related to the U.S. Air Force's F-35 stealth fighter and used it in its own stealth fighter for the Chinese.

How the Committee on Foreign Investment approved that deal remains a mystery. CFIUS does not publicly disclose any information regarding its decisions. Their findings are not publicly announced.

Interesting that China accounted for the largest share – with 74 transactions – approved by CFIUS during Obama's second term (2013-2015).

Under the umbrella of Rosemont Capital was a real estate company called Rosemont Realty. In 2015, a Chinese company called Gemini Investments bought a 75% stake in Rosemont Realty. The company was renamed Gemini Rosemont

Gemini brought $3 billion to the partnership with Rosemont, with the aim of buying "Class A institutional-quality commercial office properties in U.S. markets."

Red flag (literally) – Gemini Investments is a subsidiary of the China Ocean Shipping Company, a.k.a., "COSCO."

COSCO is a Chinese government-owned company. Its headquarters in Beijing is actually next to the headquarters of the Bank of China. COSCO is well-known for its close military ties. It's essentially a branch of the Chinese Navy.

2017

In 2017, BHR invested in Face++. That's the facial recognition phone app built by a Chinese company that is incorporated in a separate app built by the Chinese government. Police in the Xinjiang [Sin-jong] region of China use that app to keep tabs on citizens, and track and detain Uiguhr [Wee-ger] Muslims.

The app allows police easy access to data about Chinese Muslims including things like religious activity, blood type, and even the amount of electricity they use.

2018

In March 2018, a spokesman (Chris Bastardi) for Christopher Heinz (John Kerry's stepson) emailed The Hill to say that Heinz had "no operating role" in Rosemont Seneca, and that he was not involved in any of Rosemont's deals in China (which contradicts Schweizer's report in his book Secret Empires).

Chris Heinz was involved in Rosemont Capital. Rosemont Seneca was established under the same GP as Rosemont Capital, but Chris Heinz had no operating role in it. Chris and his family have no financial interest or investment in Bohai Harvest RST, he has never traveled to China, and he has never met with the firm's Chinese management team or investors.

2019

In October 2019, Hunter Biden's lawyer, George Mesires, said Hunter did not conduct any business on that 2013 trip to Beijing with his Dad.

Mesires said the timing of BHR's business license getting approved was purely coincidental because the paperwork had been submitted months before the Bidens' China trip.

According to Hunter's lawyer, the approval " was not related in any way, shape or form to Hunter's visit."

Hunter Biden finally stepped down from the BHR board last October (2019), but he DID NOT give up his 10% stake in the company.

When Bevan Cooney — the former "junior" business partner to Hunter Biden and Devon Archer — went to jail in 2019, investigative reporter and New York Times bestselling author Peter Schweizer thought he'd never gain access to the damning emails Cooney had promised. That all changed three weeks ago when Schweizer was given complete access to Cooney's gmail account.

Schweizer joined Glenn Beck on the radio program Tuesday to describe just some of the business deals revealed within these emails — like Hunter working with an alleged Russian criminal and with Chinese communists to secure their assets, or to secure one-on-one time with his dad, then-Vice President Joe Biden. And all of this new information is completely separate from the emails allegedly discovered on Hunter Biden's laptop recently reported by the New York Post.

"So, I want to make this clear. This [Cooney's emails] has nothing to do with what's on the laptop … It didn't come from [Rudy] Giuliani. It didn't come from anybody else, right?" Glenn asked Schweizer.

"That's absolutely correct," Schweizer confirmed.

He briefly explained how Cooney, a former Los Angeles nightclub owner, is currently serving a prison sentence for his involvement in a fraudulent business bond scheme with Biden and Archer. From prison, Cooney gave Schweizer written permission to access his Gmail account.

"This is really important," he noted. "We're not looking at printouts. Not looking at PDFs. We're actually in his Gmail accounts themselves, sifting through these emails. And there's a shocking amount of information about deals involving China, involving Russia, involving all sorts of things they were trying to pull off."

Watch the video below to catch more of the conversation:

Want more from Glenn Beck?

To enjoy more of Glenn's masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution and live the American dream.

The king of "No Spin" and bestselling author of "Killing Crazy Horse," Bill O'Reilly joined Glenn Beck on this week's podcast to talk about the latest developments in Joe Biden's Ukraine and China corruption scandal. Now that some of the details are finally coming out in the open, does the average Democrat care? Maybe, but the Left doesn't seem to.

O'Reilly argued there's more hatred for President Donald Trump now than in 2016, and that some people hate President Trump so much that they'd rather vote for the "senile, corrupt" Joe Biden.

"Hunter got tens of millions of dollars from Ukraine, from Russia, from China because his father was vice president. I have no doubt in my mind," O'Reilly said. "But the hatred for Donald Trump overrides that in the minds of millions of viewers. They're saying, 'You know, we'd rather have the senile corrupt guy than Trump.'"

Asked by Glenn if any other Republican running for president would be met with the same level of vitriol, O'Reilly answered, "The Left is the Left. They don't like America. The want to redo the Constitution. They want to take some of our freedoms, like the Second Amendment and the First Amendment, and change them. And they want to destroy capitalism and replace it with a big centralized government in Washington that controls the economy … but I'm talking about the folks. I have liberal friends and I say to them, 'Do you not understand that when you vote for Biden, you're voting against your own self interest?'"

Watch the video clip from the full podcast below, or find the full episode HERE:

Want to listen to more Glenn Beck podcasts?

Subscribe to Glenn Beck's channel on YouTube for FREE access to more of his masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, or subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution and live the American dream.