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Adam Shapiro (Fox Business, Tax Reform Update)

Nov 13, 2017|

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

If you're on the filly can still keep up with the financial exchange on the I heart radio app available on your phone or tablet to search the financial exchange. And you can hear individual segment or fall shows if you can't listen lines we've got you covered. On the I heart radio app we're joined now by Adam Shapiro from the Fox Business Network to get an update on tax reform. Sure open you have one. That gap a bit of an update for you. And so we have Fox Business broke last night which is that senator hatch chairman of the Senate Finance Committee. Is gonna propose as part of the market some amendments. Which will change IRAs and 401 case going forward but also this is big for company. Is going to propose. He deal allowing. Dividend reduction essentially. If you're a public exit corporation and you pay your shareholders a dividend enabled now allow if that's amendment takes it's approved and put into the bill that would allow a company to deduct up to twelve point 5% of total dividend payments have been here. Wow that's huge is it. Future first time ever that they need them but it had just been put pickle that. Corporate integration. Because it is such it's double taxation the company pays. Taxes. On the name come in and they sent it to the shareholder who pay taxes on. They've had a drink and so they waddle and. What it would lose the what are they doing on retirement benefits. It was retirement benefits if you are fifty years or older right now you can contribute 6000 dollars additional. On top of the team now sent to your 401K pretax. Totaled 24000 dollars you're talking to your all if you're fifty year old. What patches proposing is eliminating that ketchup and so there would no longer be a pretext ketchup for people fifty years and older. I instead it would be en 9000 dollar ketchup widget have to pay tax on that they'd want. When he struck me in his contributions however it would be a raw. So when you retire you get that money to actually assuming that Dietrich on that changed the rules that's actually pretty. I I institute and do whatever your position as it depends on year year economics as you'd expect that. Yeah I mean for a guy like me I'd look at that as a positive. Well you'll be be that you probably being a higher tax bracket now if you're making that ketchup that you would be when you retire and start pulling them money. Maybe may be in LA and I'm not so sure about that. In any depends on how much wealthy the accumulated. And you know I hear what you're trying to do is forecast with tax rates are going to be twenty year from lawfully hack who the heck knows right. Right I mean that it ate it there is not a huge. Shake up then people wouldn't for a one case. Because look I think the statistics are 50% of Americans actually have access to a 401K. Of that 50%. And less than 50%. Actually fund. An amateur of Allah how many people actually on ketchup. It's a major acting out your 401K your party unity come over on K year. Why work in in that capacity talking to people and I can tell you. Summit Max out their forward came take advantage of the catch up provision Buick again you're correct in assuming it's a relatively. Small segment of the overall population taxes went out via the state and local tax you know it. That doesn't matter and out it doesn't matter in Kansas doesn't matter Mississippi. Yeah that's well you know there's this day because they're not I'd expect the people. You can look outline of present Utah I think like 30% of the tax filers and Utah itemize their attack. Nine and Harold red necks in it he driver on trucks and indeed you know there are uneducated. And don't have. I 08 just all the red states the day I just love the ball together. Kentucky to buy Kentucky has fixed percent think attack. So window where we got about take that a quick about it and it is that yeah it is it's got up and that's what. State local tax deduction house version allows you to deduct. Up to 101000 dollars in property tax. Other than that everything else is when it. This that it is saying to heck with that orbit eliminate all. There's no deduction here I don't expect that no deduction for any tact whatsoever. Date local. Give Brady over the weekend on Fox News stand out better. And have some state local ties to meet the Pallet and fight to preserve the 101000 dollar property tax deduction. Adam one of the questions that I have on this is typically one of the the lines of thinking. About reducing federal taxes is that our own state or city BO governments. Are more efficient and allocating resources and those resources stay within the states who would that make sense to keep that state and local tax deduction. Two incentivized you know states to kind of take business into their own hands. I think it's a good argument you could make if you were a member of the US senate or the congress and Peking is making it similar argument he's represented. Bjork the U arguments that are being played out publicly right now and in your argument is valid. He argument that's being played. By the administration and by congress if you worked for the repeal of the state and local tax deduction. Which are saying is that why should Alabama soul or and this. Subsidize state like New York in cheers. The high tax state. But the other argument in this in this study done by Rockefeller Institute neck deep as it ain't states like. Met Tuesday at New York California are subsidizing states like and as an Alabama which have lower. Local taxes because they get a higher amount of federal subsidy. As I'd tax day. So you can argue both of these at the end of the day. I called what were some minor over the Tax Foundation and at least a little bit right way by this is what the guys that. Adam if you're Democrat you'd think that the wealthy should pay more that you should have no problem eliminating the deduction Tuesday. That pretty much we have a whole bunch of good argument here it's it is is it's fascinating on this issue that you could take any side. And be somewhat right. Well it yet Dan Rostenkowski the Democrat from Illinois back in 1986 was the original. That you proposed system Ridley I can activities that. Dose it's not a new concept but the bottom line is that. In order to raise revenue would be taxed at. They've gone after political consult. State local tax deduction now my brother. Quote my brother alternate at the beginning. At a my brother is well off the he's comfortable but I eat very well. And it did you have any problems you know you lose the ability to itemize to meet that I have no published an you know take my taxes to build roads and help people. This could take my taxes to give a company or someone really wealthy the tax break yeah have a problem if you take tactic that now also lives in York. How does a blue state Republican vote for that. That's a real tough questions. And that's let you know in the senate they don't give a dollar because how many editors come from I expect complete state right. But I'm oust what do you think Peter Yang and like L in Pennsylvania and Tom read. From New York. You know why are they opposed to the statement would expect as a strategic tech and that's not counting. It's on island I mean this might be a little bit inside baseball. It's leaning Democrat. Move that's a first. Now that no look it's it is the big deal a night I don't know about you but I don't think he gets done by Christmas. Do you do. I do. I do idea I think that member and we know where you live we're gonna find I thought I thought I. Adam thanks reject it doctors say you should limit salt anyway right back at. Thanks for your time and that's Adam Shapiro where do you stand that you were quite convince its first quarter. I still stand by first quarter corner and I.