Press Briefing by Press Secretary Sarah Sanders, 11/17/2017, #33
In recent months, we've heard from American entrepreneurs, workers, and families from every corner of our nation about how this plan will empower them to build a better life.
In
In
In state after state, story after story, we've heard how our plan will profoundly improve the lives of hardworking Americans. The optimism is coming back, because with this tax plan -- combined with the President's efforts to eliminate job-killing regulations -- Americans feel like their goals are once again attainable.
It's a reminder of one of the things that made our country unique to begin with. Our people have always been able to visualize a future for themselves and their children and make it a reality. That's why it's called the "American Dream," and this tax plan will make it more attainable for more of our people than ever before.
But for this to happen, we need economic growth that makes it possible for businesses to create jobs and raise wages. So to give some perspective on how our tax plan is going to do that, I've invited
So, with that, I'll turn it over to Kevin.
And, at the meeting, they were going through the staff recommendations of the
In fact, there was widespread acclaim for the President's approach towards corporate taxation in particular, because the
And so the idea right now that this corporate tax reform is close to the finish line is celebrated not only by us at the
And, with that, I'm pleased to see that the
And, I guess, I promised -- I'm not good at this. I don't know what the protocol is, but I'll start in the front row and then work back.
Q Perfect. (Laughter.)
Q Kevin, I know you're an economist but there's obviously a political component to all of this. You got at least six senators up on the Hill, including
And
And so I'm not sure about the etiquette for follow-ups, so I'll try to limit people to one because there's a lot of hands.
Q What makes you think trickle-down economics is going to work this time when it hasn't worked before?
And yeah, the fact is that countries around the world have cut their corporate rates and had broad-based reforms, like we're doing on the individual side, and then seeing economic growth result.
I don't think there's anybody who thinks that you'll get no growth or negative growth for this. Maybe there are a few people. But in every economic model I've seen, you get growth -- either a lot of growth, or sometimes if it's a closed economy model, a little growth. But you get positive growth out of this. And that growth will benefit workers, and let's talk about that.
So, right now, the way a
And so what the President wants to do is cut the rate to 20 percent and build guardrails around the tax code so that people can't transfer price -- everything to
Q And the incentive --
And so the question then is, moving forward, what do they do about pass-through entities? What do they do about this, what do they do about that? And we at the
The President supports regular order because that's really how deals get made and how bills become law. The fact is, it's urgent that we get a 20 percent rate for America's workers. And it's urgent that we get a middle-class tax cut for America's workers. And the details about like exactly when the small business things kick in and out are things that we're watching them work out up on the Hill. And we encourage them to pursue regular order because they need to listen to everybody and get the votes they need to make this law.
I'll go to the lady, right there.
Sorry, now I said I'd come over here. Yeah.
Q Kevin, thanks for being here. On one of your TV appearances yesterday, you said that an average family, when this is all said and done, could accumulate a savings benefit of
Q Can you walk us through that?
I won't try to do that now in the limited time that we have, but the basic idea is that back when we increased our corporate tax rate from 34 to 35 percent, we were kind of in the middle of the pack of
A typical country, since our tax increase, has cut its corporate rate two or maybe even three times. And for economists, what that does is it gives us an enormous amount of data to analyze because there are countries that change their rate and countries that don't. And you can compare the experiences of those two types of countries.
There's a big peer-review literature that looks at that, including a paper that's by a German economist -- that's about to come out in the American Economic Review. And what we do is we go through all those papers and we have charts that show, well, if this paper is true, what wage effect do you get. And most of the action is well north of
I'll go in the middle, with the orange tie.
Of course, the hope for everybody is that when the time comes for these things to expire, that they get extended, as happens -- I might add -- even for the top marginal rate when
So, back then, there was bipartisan support for the idea that you should not lift the top marginal rate. And so there should be bipartisan support. There would be economic growth effects of bringing it down right now.
I'll go back down into the middle there.
Q Hi,
I'll go back to the far back now.
Q Thank you, Kevin. I appreciate it. Can you talk about this moment earlier in the week at the
Can you answer that question? Why aren't there more hands going up in a room like that? You would assume that CEOs would say, yes, in fact, we are going to invest more if tax reform passes. Is the administration missing something there?
But as an economist, if I go back and look at the academic literature, very often people survey CFOs, and they say, hey, if we change the tax code, would you guys do anything? And they tend to always answer "no" in surveys. But if you look at the hard evidence about what they do, imagine if they didn't respond to taxes, then they wouldn't be pursuing their fiduciary duty to maximize profits for their shareholders. So it would be totally irrational for them to do that. And firms that did act rationally in response to the tax code would put them out of business by taking advantage of the tax code.
So the point is -- the hard evidence is that people do respond. In fact, one of my very, very first papers that I ever wrote when I got out of grad school is the Brookings papers where we looked at the 1986 tax act, the changes that it made to the business tax code and how it affected investment. And there were very large effects.
Right here in the front.
Q Yes, yes.
But here's the way I think about it and what I would say to Gene if he was here: That if you look at the
And so the idea that right now we have the highest corporate tax on Earth generating almost no revenue -- because people avoid the tax by moving factories to
And I know that the
And so the idea that this blows a hole in the deficit I think is just incorrect.
I'll go to the purple tie.
Q I want to pick up where John, right in front of me, left off when he asked about the phase-out on the individual side. You're an economist; however, the two answers that you gave were both political. One, there's reconciliation rules. And two, hopefully politicians down the line solve it. But like I mentioned, you're an economist. So can you not make an economic argument as to why this is good economically for people?
Q Correct. Is there an economic argument as to why this is good for the country as it stands right now to expire within eight years or so?
Expensing is kind of a strange thing in the sense that if you have expensing for a year, if you go back and look at
But for the most part, permanent tax cuts are far more impactful than things that expire -- which is why if you go back and look at the Obama administration, when they were here during the beginning of the Great Recession, they even extended the Bush tax cuts at the top because they understood this.
Can I go right here? And then I'll come to you, and then that might be the last question because Sarah is standing.
Q I actually want to follow up on that, though. You all made a value judgment to make the corporate tax cuts permanent and to make the individual tax cuts expire, even though you want all of them to be permanent. What's the rationale for having corporations have that certainty of knowing that they don't have to worry about what's going to happen in
Q You don't see the value one way or the other, whether the corporate tax cuts versus --
I'll give you the last.
Q Kevin, you've melded politics and economics here quite successfully, and I want to ask you a political and economic question. You've talked about growth covering what the
And since it's on the mind of some of your undecided Republican senators, is this administration willing to commit to a review five years in to see if the growth models have held along your lines and the deficit implications aren't as large -- or, if they aren't, to reassess these tax cuts in order not to blow a hole in the deficit?
Q Do you think there would be --
We've had two quarters in a row of 3 percent growth. If you look at the fourth quarter data, it's suggesting -- at the Atlanta Fed, they have GDPNow, which is about 3.2 as of yesterday. So it's saying that we're growing at 3 percent. If we take that momentum into next year and add a tax cut, then we're quite confident that one should be able to expect sustained growth at that level or above.
With that, I think I have to hand it back to Sarah. Thank you so much for being so gracious with your questions.
Let me go back here.
Q Thanks, Sarah. I have a non-
Cecilia.
Q Thanks, Sarah. If it's fair to investigate
Q But how is this different?
Major.
Q So I want to revisit something we discussed yesterday. You said, one of the ways that
Q But that's the venue you meant when you talked about "in the court of law."
Q The only reason I raise that is because, during the campaign, as you well remember, then-candidate Trump said, after the election he would sue all the women who have accused him of sexual misconduct, and that you have, from the podium, deemed all liars. He hasn't done that. Why hasn't he done that?
Jeff.
Q Sarah, some critics have said that it was hypocritical of the President to tweet about
Sara.
Q Can you tell us whether the President believes the women who are making these allegations against
Matthew.
Q Thank you, Sarah. In light of the national discussion about the importance of taking these kinds of accusations seriously, I wanted to check: Is it still the
Blake.
Q Thanks, Sarah. Let me ask you about something else -- the pending potential
April.
Q Sarah, is this an uncomfortable conversation about these sexual allegations for this
Obviously, it's something that should be looked at, and I think it should be looked at widespread not just in the political sphere, but in the business atmosphere and across the board in this country. And it's something we certainly again take seriously.
Q A follow-up.
Q I talked to
Alex.
Q Two questions. One on taxes, then immigration. A recent
And then on immigration --
Q Okay.
But at the same time, we want all Americans to benefit by a growing economy and a tax system that actually works for our country versus one that penalizes people.
We're going to keep moving just because we're tight.
John.
Q Let me come back and ask you the same thing I asked Kevin. You've got six Republican senators either "no" or seriously on the fence here. Can you win enough over in order to pass this? And if the President gets snookered again by the
Q The fact that you didn't get any
Q Safe to say the President will not be pleased if he gets snookered by the
Toluse.
But to this point,
Q Are you expecting (inaudible) much more requests forward in the future, specifically for
Kristen.
Q Sarah, thank you.
Q Has he spoken at all to
Q How concerned is he, Sarah, about losing this seat to a Democratic candidate, who, right now, according to the polls, is leading?
John.
Q Thanks a lot, Sarah. Just in regards to that question regarding the supplemental requests: The President and the administration has put forth
Q Did the President notify
Q Did the President notify
Q Yesterday, the joint investigative mechanism was vetoed by
Does the President have any response to the veto, first? What is the
In terms of
Steven.
Q There's been some extraordinary pushback on the administration's decisions with respect to elephant trophies and hunting of lions and elephants in
A ban on importing elephant ivory from all country remains in place. But again, all of this was based on a study that was conducted -- that started back to the previous administration and done by career officials.
Darlene.
Q The senate tax bill has a tax break for corporate jets. How does that help the middle class?
In terms of those specific pieces, that's something I would refer you to members of the
We'll make this the last one.
Q Thank you, Sarah. Yesterday -- on
Thanks so much, guys. Hope you have a happy Friday and a good weekend. We'll see you on Monday.
END
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