1 00:00:00,120 --> 00:00:05,080 Speaker 1: Michael McKee eron Lorenzo said he wouldn't come on unless 2 00:00:05,120 --> 00:00:09,399 Speaker 1: the Red Sox were doing better than good into June. 3 00:00:09,920 --> 00:00:12,920 Speaker 1: I think we're there. It's our new theme. We're only 4 00:00:12,960 --> 00:00:16,760 Speaker 1: having Red Sox fans on air. Did you know that, Mike, 5 00:00:16,840 --> 00:00:19,280 Speaker 1: that's our new theme. Oh. I didn't realize that it's 6 00:00:19,320 --> 00:00:25,040 Speaker 1: an executive decision. Uh. Six week of team ball. We 7 00:00:25,079 --> 00:00:26,960 Speaker 1: can get his views on the Red Sox, but first 8 00:00:27,000 --> 00:00:29,960 Speaker 1: we need to ask him about tax reform, because there's 9 00:00:29,960 --> 00:00:34,600 Speaker 1: an interesting piece he's published for Bloomberg BNA that goes 10 00:00:34,640 --> 00:00:37,640 Speaker 1: a step beyond what most people are reporting from Washington. 11 00:00:37,680 --> 00:00:41,600 Speaker 1: There are analysts who are suggesting we might see some 12 00:00:42,479 --> 00:00:49,680 Speaker 1: form of tax law change. Might Uh, Aaron, you're reporting that, Um, 13 00:00:49,840 --> 00:00:55,000 Speaker 1: the some House Republicans are actually looking for a consumption tax. 14 00:00:55,080 --> 00:00:58,280 Speaker 1: This this would be a major change in the tax code, 15 00:00:58,320 --> 00:01:02,680 Speaker 1: not just tinkering around the edges. Good morning, guys. You're 16 00:01:02,760 --> 00:01:05,839 Speaker 1: right about the Red Sox and you write about these 17 00:01:05,880 --> 00:01:10,720 Speaker 1: income tax changes. If if if Congress were to adopt 18 00:01:11,360 --> 00:01:14,880 Speaker 1: more of a consumption style tax, that would affect almost 19 00:01:14,880 --> 00:01:18,920 Speaker 1: all of us. Uh. We we wouldn't be paying taxes 20 00:01:19,120 --> 00:01:24,720 Speaker 1: uh as we you know currently do. How would well, 21 00:01:24,760 --> 00:01:28,399 Speaker 1: first of all, who's behind this, how much? How much 22 00:01:29,160 --> 00:01:32,440 Speaker 1: just do they have to get something like this, even 23 00:01:32,720 --> 00:01:36,760 Speaker 1: uh it's the committee level, Well, it's I would say, 24 00:01:36,760 --> 00:01:40,440 Speaker 1: this is all still an ideas type of process, ideas 25 00:01:40,440 --> 00:01:44,160 Speaker 1: sphace UM. But there are some some fairly senior members 26 00:01:44,160 --> 00:01:46,480 Speaker 1: of the committee, the the House Ways and Means Committee 27 00:01:46,480 --> 00:01:50,760 Speaker 1: we're talking about here, that has jurisdiction over tax law UM, 28 00:01:51,400 --> 00:01:54,320 Speaker 1: and one of the members there has been very uh 29 00:01:54,640 --> 00:01:59,640 Speaker 1: strongly pushing UM what what he describes as a consumption 30 00:01:59,680 --> 00:02:03,360 Speaker 1: type attacks on business cash flow. I'm talking about Congressman 31 00:02:03,400 --> 00:02:08,960 Speaker 1: Devin Nonaz from California UM. He he is pushing hard 32 00:02:09,000 --> 00:02:13,120 Speaker 1: to have his his proposal included or variation of it 33 00:02:13,200 --> 00:02:16,400 Speaker 1: as part of UM. What what the Republicans in the 34 00:02:16,440 --> 00:02:20,320 Speaker 1: House are describing as a as a blueprint. It's a 35 00:02:20,400 --> 00:02:22,639 Speaker 1: plan that they that they expect to put out in 36 00:02:22,720 --> 00:02:24,720 Speaker 1: about well the next few weeks, by the end of 37 00:02:24,720 --> 00:02:27,560 Speaker 1: this month. Is is what we were most recently told 38 00:02:28,160 --> 00:02:31,600 Speaker 1: that would almost serve as a roadmap for for ideas 39 00:02:31,639 --> 00:02:33,880 Speaker 1: that they want to try to push forward next year. 40 00:02:34,240 --> 00:02:38,440 Speaker 1: So I get that in overaul blueprint might kickstart consumption 41 00:02:38,480 --> 00:02:42,160 Speaker 1: text discussions. I get all that but your wonderful work 42 00:02:42,200 --> 00:02:45,040 Speaker 1: for b n A has every our, our, our, our, 43 00:02:45,160 --> 00:02:48,079 Speaker 1: our person in there. Let's assume they ram it through 44 00:02:48,120 --> 00:02:50,560 Speaker 1: the House, they have to go to the Senate. Right, 45 00:02:51,200 --> 00:02:55,480 Speaker 1: what would their legislation or their proposals do in the Senate. Well, 46 00:02:55,520 --> 00:02:57,400 Speaker 1: that's right. It's hard to know how much this would 47 00:02:57,440 --> 00:03:01,239 Speaker 1: resonate in the Senate, where Democrats have more power right now, 48 00:03:01,440 --> 00:03:04,320 Speaker 1: they're not in the majority, but they have enough seats 49 00:03:04,440 --> 00:03:07,720 Speaker 1: right now to to block things, and and they very 50 00:03:07,720 --> 00:03:10,799 Speaker 1: well could be in control next year of the Senate, 51 00:03:10,840 --> 00:03:15,200 Speaker 1: so you could have split Congress again. Um. You know, 52 00:03:15,240 --> 00:03:19,600 Speaker 1: there are some Senate Democrats who do have consumption tax proposals. 53 00:03:19,600 --> 00:03:22,800 Speaker 1: A prominent one that comes to mind as a Senator 54 00:03:23,120 --> 00:03:26,000 Speaker 1: Ben Cardon of Maryland. He's on the Senate Finance Committee, 55 00:03:26,000 --> 00:03:29,680 Speaker 1: which is the corresponding committee in the Senate with tax 56 00:03:29,720 --> 00:03:34,240 Speaker 1: authority UM. His idea would would set a pretty high 57 00:03:34,320 --> 00:03:39,240 Speaker 1: exemption level so that um UM middle to lower income 58 00:03:39,280 --> 00:03:42,960 Speaker 1: households would mostly not uh get hit with with a 59 00:03:42,960 --> 00:03:45,960 Speaker 1: consumption tax that that he uh he floats. It would 60 00:03:46,000 --> 00:03:50,440 Speaker 1: be a more upper middle and then higher up households UM. 61 00:03:50,880 --> 00:03:54,120 Speaker 1: So that you know, there could be some appetite for 62 00:03:54,280 --> 00:03:58,520 Speaker 1: change on both sides. But uh, you know, looking at 63 00:03:58,520 --> 00:04:01,560 Speaker 1: a crystal ball into next year, is um not an 64 00:04:01,560 --> 00:04:04,640 Speaker 1: exact science. Well, let me ask you one last question. 65 00:04:05,080 --> 00:04:09,400 Speaker 1: Consumption tax obviously is a is a very far bridge 66 00:04:09,440 --> 00:04:11,840 Speaker 1: to cross. But what about just the idea of any 67 00:04:11,960 --> 00:04:18,080 Speaker 1: kind of tax reform next year, even business territorial change. Sure, Um, well, 68 00:04:18,120 --> 00:04:24,000 Speaker 1: all of it is probably a tough bridge to cross. Um. 69 00:04:23,839 --> 00:04:27,520 Speaker 1: You mentioned territorial we're talking about international US taxes on 70 00:04:27,560 --> 00:04:32,080 Speaker 1: international derived income. Uh. You know, there is certainly appetite 71 00:04:32,120 --> 00:04:35,400 Speaker 1: among the House Republicans and some key Senate Democrats. Uh. 72 00:04:36,040 --> 00:04:38,159 Speaker 1: You can think back to last year that the current 73 00:04:38,160 --> 00:04:41,680 Speaker 1: House Speaker, Paul Ryan had some discussions with you know, 74 00:04:41,720 --> 00:04:46,400 Speaker 1: the incoming Democratic leader on the Senate side, Senator Schumer. Um. 75 00:04:46,960 --> 00:04:50,440 Speaker 1: And you know, all indications are that they would maybe 76 00:04:50,640 --> 00:04:56,680 Speaker 1: try to restart those conversations. Um. That kind of opportunity 77 00:04:56,720 --> 00:05:01,400 Speaker 1: probably presents itself early next year. That's what folks tell me. Um. 78 00:05:01,440 --> 00:05:03,599 Speaker 1: You know, we have the president coming in in January, 79 00:05:03,640 --> 00:05:06,560 Speaker 1: and we'll see what the new new administration and the 80 00:05:06,720 --> 00:05:09,880 Speaker 1: uh you know, reshaped Congress looks like and how they 81 00:05:09,920 --> 00:05:12,200 Speaker 1: work together in the first few months. Aaron Lorenzo thank 82 00:05:12,200 --> 00:05:14,480 Speaker 1: you so much. With Bloomberg b NA,