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Speaker 1: It's that time time time time. There's Luck and Load

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Speaker 1: from Michael Varry Show is on the air. It's Charlie

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Speaker 1: from BlackBerry Smoke. I can feel a good one coming on.

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Speaker 1: It's the Michael Berry Show.

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Speaker 2: In that build. It came out of the House and

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Speaker 2: the Senate Center, and then it's to be worked out

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Speaker 2: between the two, the reconciliation process it's called because they're

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Speaker 2: different bills, because there's a lot of haggling.

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Speaker 1: It goes on behind the scenes.

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Speaker 3: It was.

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Speaker 2: At Trump's direction, and he still has control over the

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Speaker 2: Republicans in the House in the Senate, at least enough

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Speaker 2: control to get what he wants done, which is why

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Speaker 2: the day before July fourth, as we expect, did at

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Speaker 2: the last minute a bill was passed. Passing a bill

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Speaker 2: at the last minute also gives a congressman some cover

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Speaker 2: when they do that which their district doesn't want them

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Speaker 2: to do, because they say, well, it was the last minute,

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Speaker 2: we had to do it. I didn't want to do it.

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Speaker 2: If I'd had more time, I would have done this,

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Speaker 2: this or this. But that bill passing it was important

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Speaker 2: to Trump to get enough of what he wanted that

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Speaker 2: he understood by strategy. This is his second term not

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Speaker 2: his first, makes a big difference. He understood he needed

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Speaker 2: everything in what we used to call an omnibus bill.

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Speaker 2: You've got to get everything into one bill, because if

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Speaker 2: you start trying to get one thing here and one

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Speaker 2: thing there, you.

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Speaker 1: Will get picked apart.

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Speaker 2: So in order to get what Bob wants, you get

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Speaker 2: Bob to vote for something that Sam wants. And in

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Speaker 2: order to get Jane what she wants, she has to

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Speaker 2: vote for what Bob and Sam want, even though those

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Speaker 2: are two things she wouldn't otherwise vote for. That's how

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Speaker 2: you get a good deal. You have to give enough

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Speaker 2: people enough things. That's how they got Lisa Murkowski from

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Speaker 2: Alaska to vote for this, which they desperately needed, is

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Speaker 2: they gave her some goodies for Alaska at the last

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Speaker 2: minute to cut a.

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Speaker 1: Deal, and of course she did.

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Speaker 2: We haven't really talked about what's in it, but it's

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Speaker 2: going to have a huge impact on every single person

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Speaker 2: that files taxes, I mean, just the reality. The good

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Speaker 2: news is, I don't think it's going to be a

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Speaker 2: huge change for most people. There are some things funded

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Speaker 2: in the build, like ice at a level we've never seen,

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Speaker 2: more than I think all militaries except for two. But

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Speaker 2: I wanted to talk about how this affects you and

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Speaker 2: your businesses. So I have talked to my CPAs at

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Speaker 2: DeRose Partners throughout this process, and I've been tracking with

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Speaker 2: them various elements in there, not so much as it

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Speaker 2: affects me, but as it affects business owners and medium

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Speaker 2: sized business owners out there where this is going to

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Speaker 2: hit the most. I have asked Aaron McPhee with de

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Speaker 2: Rose Partners to join us, and he's our guest.

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Speaker 1: Welcome, Hey Michael, how are you good?

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Speaker 2: So, Aaron, my understanding is, and that's from a lot

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Speaker 2: of cursory reading. I did go to the Tax Foundation

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Speaker 2: this morning and look at their final kind of cut,

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Speaker 2: at this swipe, at this, and my understanding is, you

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Speaker 2: would say, to most middle income earners and small business

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Speaker 2: owners by and large, there's nothing dramatic in this bill.

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Speaker 1: Can we start with that?

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Speaker 4: Yeah, I'd agree. You know, a lot of this is

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Speaker 4: aimed at middle income. You know, it's extending a lot

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Speaker 4: of the things that happened in twenty seventeen that we

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Speaker 4: have been following for the last number of years, and

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Speaker 4: so not a whole lot of changes, a lot of

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Speaker 4: it's being extended and most time through twenty twenty nine.

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Speaker 2: And that's important for people to understand because what many

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Speaker 2: did not I think what many did not realize is

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Speaker 2: the tax cuts that Trump put into place in twenty seventeen.

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Speaker 2: We're both very popular and very effective. They spurred an

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Speaker 2: economy that in January of twenty twenty we were really

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Speaker 2: seeing accelerated and on fire. Those tax cuts were set

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Speaker 2: to expire. So the big victory of the One Big

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Speaker 2: Beautiful Bill was to extend those tax cuts. That's hard

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Speaker 2: for people to get excited about, but realizing what you

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Speaker 2: were about to lose is and maybe I think Republicans

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Speaker 2: didn't do a good job of explaining that.

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Speaker 3: Right.

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Speaker 4: That is correct. You know, tax rates were about to

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Speaker 4: go back up. You know, the highest rate was a

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Speaker 4: thirty seven point six percent, so keeping it at thirty

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Speaker 4: five at.

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Speaker 3: The top rate.

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Speaker 4: Also, all the lower rates are staying where they are,

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Speaker 4: So that's going to have a big impact I think

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Speaker 4: on individuals versus what could have happened.

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Speaker 2: Let's talk about some of those provisions and how you

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Speaker 2: expect to guide your business owner clients and high net

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Speaker 2: worth individual clients.

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Speaker 1: Aaron McPhee is our guest.

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Speaker 2: We start with the estate planning, and that's sort of

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Speaker 2: one of the things I read from folks who have

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Speaker 2: reviewed this that I respect, who are more tax scholars

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Speaker 2: and tax experts in talking to you folks, is that

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Speaker 2: the good news is this provides a degree of stability.

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Speaker 2: But when we talk about folks planning their estate and

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Speaker 2: what they're going to pass to their kids, talk a

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Speaker 2: little bit about the minor change in that.

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Speaker 4: Yeah, So they essentially set the estate threshold, your lifetime

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Speaker 4: exemption that you get where it currently is, and they

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Speaker 4: indexed it to inflation, whereas it was set to revert

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Speaker 4: back to twenty seventeen thresholds. Of course, time value money

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Speaker 4: things are more expensive now, you know, it didn't make

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Speaker 4: sense to go back to that threshold. So they decided

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Speaker 4: to go ahead and bump it back to where it

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Speaker 4: was and keep it at a permanent level there.

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Speaker 2: When you look, let me ask you a more open

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Speaker 2: ended question, and I guess we'll have to wait until no.

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Speaker 1: I got time.

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Speaker 2: If you're calling a business owner of a mid sized

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Speaker 2: business or a high net worth end of it, let's

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Speaker 2: start with a mid sized business and you say, here's

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Speaker 2: one thing in this bill that I think you're really

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Speaker 2: going to like, what would that be?

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Speaker 4: I think the bonus appreciation going back to one hundred

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Speaker 4: percent is huge for business owners. That's probably the key

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Speaker 4: thing I would think that they'd be interested in because

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Speaker 4: it was set to be at forty percent for twenty

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Speaker 4: twenty five. So you spend a dollar today, you don't

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Speaker 4: get to deduct all of it in the year that

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Speaker 4: you spend the money. You have to spread it out

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Speaker 4: over a number of years, and so back that bonus

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Speaker 4: appreciation is key.

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Speaker 2: I think it also should spur a lot of economic

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Speaker 2: activity because everybody's looking at the hero let right absolutely,

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Speaker 2: and that's the sort of thing that matters. We talk

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Speaker 2: a lot about the salt cap, the state and local

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Speaker 2: tax deduction, and that has a lot to do with

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Speaker 2: high tax states like California and low tax states like

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Speaker 2: Florida and Texas.

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Speaker 1: Where does that end up.

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Speaker 4: Yeah, So they have raised the cap up to forty

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Speaker 4: thousand dollars and it is index for inflation, and there

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Speaker 4: are caps and face downs for higher income individuals.

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Speaker 3: So what that means is more.

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Speaker 4: Texans are going to be able to deduct their full

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Speaker 4: property tax that they pay each year, which is a

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Speaker 4: big help, I think because most of the property taxes

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Speaker 4: were capped at the ten thousand dollars level, and so

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Speaker 4: now they've got a little bit more breathing room to

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Speaker 4: be able to take that deduction.

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Speaker 2: I want to come back with just one moment. I

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Speaker 2: want to come back to that issue and what that

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Speaker 2: looks like dollars and cents, and we'll create a brisk

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Speaker 2: hypothetical Aaron McPhee with Deroch Partners as our guests, more

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Speaker 2: on the one Big Beautiful tax Bill coming up on.

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Speaker 1: The Michael Verie Show.

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Speaker 2: Several years ago, I set about trying to create a

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Speaker 2: one stop shop for our listeners for financial services of

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Speaker 2: various types. But I wanted to get the right folks

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Speaker 2: with the right or competence, the right heart for it,

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Speaker 2: who were fans of the show, so they would understand

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Speaker 2: our values and they would understand the kind of people

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Speaker 2: we were sending them. And that meant somebody to handle

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Speaker 2: estate planning, meant someone to handle financial planning. Estate planning

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Speaker 2: we do Christine Weaver financial planning, Steve Old, my friend,

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Speaker 2: Martin Lopez and John and Andy McGee and credit card processing,

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Speaker 2: and I wanted all of that under one roof, and

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Speaker 2: I wanted someone who could handle the tax strategy, not

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Speaker 2: just a CPA, but could handle the CPA portion, but

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Speaker 2: a tax strategy. One of the things I've noted over

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Speaker 2: the years is that when I start asking questions off

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Speaker 2: air that I would never ask on air, you know

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Speaker 2: what's the plan when you sell? How strategic are you

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Speaker 2: in not only complying with tax laws but aggressively finding

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Speaker 2: ways to cut costs, to cut taxes, to look for

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Speaker 2: ways that tax laws will guide you to make more

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Speaker 2: money if you simply do something that would be very

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Speaker 2: natural to your business anyway. So Deroche Partners was the

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Speaker 2: partner we chose. Aaron McPhee is one of the partners there.

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Speaker 2: He is our guest, to be clear, the person who

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Speaker 2: did taxes for thirty years, my dear friend, Bob ful mcgauley.

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Speaker 2: He is a wonderful guy. Our business got bigger and

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Speaker 2: I wanted a partner who could handle that and who

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Speaker 2: could handle a lot of our clients. And he tends

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Speaker 2: to do more individual returns. So I still send people

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Speaker 2: if you just have a basic income tax return, I

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Speaker 2: still send them there. For our folks who run businesses

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Speaker 2: or who are high net worth individuals. Our partner for

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Speaker 2: that is to Roche Partners, that's their expertise. It would

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Speaker 2: be overkilled for them to handle the average plant worker.

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Speaker 2: I wouldn't tell you to do that, but we have

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Speaker 2: a lot of folks out there that run businesses that

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Speaker 2: are growing or that they're looking to sell, and to

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Speaker 2: partners is for that. I say all that just so

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Speaker 2: you you understand where I am in all this. Aaron

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Speaker 2: mcphe is our guest to Roach partners erin I'm just

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Speaker 2: going to read you a couple of headlines. When you

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Speaker 2: google small business owner and small business you know it's

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Speaker 2: it's it's one of those things like the middle class.

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Speaker 2: There are a lot of people who consider themselves a

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Speaker 2: small business owner, and they're way bigger than.

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Speaker 1: A small business owner.

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Speaker 2: The SBA makes loans to folks that aren't really a

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Speaker 2: small business owner. But how businesses and manufacturers will benefit

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Speaker 2: from OBB here's who stands to gain. Let me see,

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Speaker 2: Senate's Big Beautiful Bill is a disaster for small business.

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Speaker 2: One Big Beautiful Bill simplified permanent relief for small businesses.

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Speaker 2: When you are kind of passing judgment on the one

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Speaker 2: Big Beautiful Bill, as relates to small business owners. Let's

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Speaker 2: forget what it does to the deficit. Let's forget what

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Speaker 2: it does to everything else, even the individual tax payer.

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Speaker 2: Let's talk about the small business owner and does he

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Speaker 2: win or lose from this, and how.

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Speaker 3: I think he wins.

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Speaker 4: There's several key aspects in the bill that are very

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Speaker 4: promising for small business owners. A lot of these things

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Speaker 4: are phased out once you get into the larger revenue thresholds,

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Speaker 4: but some of the big ones is the qualified business

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Speaker 4: income pass through deduction. They increase that to twenty three

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Speaker 4: percent to kind of help level the playing field with

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Speaker 4: C corporations, which are using your big corporations. And they

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Speaker 4: also allowed for the immediate expensing of research and I

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Speaker 4: guess design costs, which you had to capitalize and spread

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Speaker 4: those costs over five years. You know, I think they

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Speaker 4: would want to I guess reward any I guess innovation

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Speaker 4: that's out there, and so by allowing this full expensing

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Speaker 4: whenever you incur the cost really helps that.

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Speaker 3: I think.

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Speaker 2: There is also a lot of reference to R and

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Speaker 2: D search and development.

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Speaker 1: How does this affect that?

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Speaker 4: So as part of the original twenty seventeen tax law,

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Speaker 4: in twenty twenty two companies that were doing research and

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Speaker 4: development had to capitalize or they had to basically not

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Speaker 4: deduct those costs, and they had to spread that cost

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Speaker 4: over five years. And so by changing this piece of

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Speaker 4: the bill, they were able to allow immediate deduction for

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Speaker 4: any costs that are incurred for research and development purposes,

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Speaker 4: and those have to be domestic research and development costs.

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Speaker 4: Any foreign R and D that's performed has to be

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Speaker 4: spread over fifteen years.

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Speaker 1: Oh sorry, I had my Michael again.

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Speaker 2: That's consistent with Trump's approach the tariffs and a lot

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Speaker 2: of these things are to encourage American manufacturing, to encourage

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Speaker 2: things on American soil, and that's now baked into into

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Speaker 2: the tax policy. Is there anything about the one big

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Speaker 2: Beautiful bill that you know tax policy tends to encourage

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Speaker 2: and discourage behaviors. Are there things you expect to see

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Speaker 2: start or stop as behaviors by businesses as a result

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Speaker 2: of this bill.

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Speaker 4: I think one of the surprising things was the new

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Speaker 4: floor that's on charitable contributions for itemized.

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Speaker 1: Yeah, doctor, I saw that.

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Speaker 4: That's that was I think a revenue raisor that they

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Speaker 4: had to put in there to kind of balance things out.

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Speaker 4: So essentially, half a percent of your income is your threshold.

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Speaker 4: Once you get above that you can deduct your charity,

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Speaker 4: and anything below that carries forward. But I thought that

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Speaker 4: was kind of an interesting thing in there.

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Speaker 2: I did too, and I was following the bill as

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Speaker 2: it was going through, and I was in d C.

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Speaker 2: So I was meeting with DC folks and we were

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Speaker 2: talking about what was in the bill and what's being

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Speaker 2: bad over and what may or may not pass and

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Speaker 2: what I didn't see coming. And to state that again, folks,

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Speaker 2: one half of one percent of your income, So if

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Speaker 2: you make one hundred thousand dollars, five hundred dollars would

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Speaker 2: be the floor. If you give less than that, correct

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Speaker 2: me if I'm wrong, Aaron. If you give less than that,

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Speaker 2: you cannot deduct your charitable contribution, right.

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Speaker 3: That's correct.

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Speaker 4: If you're an itemizer, there is an above the line

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Speaker 4: deduction for charity, which I think leases around two thousand dollars. So,

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Speaker 4: but yeah, anything on your itemized deductions, if you're below

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Speaker 4: that threshold, you can't deduct it and you have to

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Speaker 4: carry it forward to a future year.

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Speaker 1: I want to talk about that in a moment, Aaron.

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Speaker 2: I read on the itemizers that with this standard deduction,

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Speaker 2: they have reduced and I'm going to get the number wrong,

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Speaker 2: but I want to say from forty down to thirty

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Speaker 2: and now only ten percent of filers itemized.

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Speaker 1: Does that sound right? People have really gotten away from that.

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Speaker 4: Yeah, that definitely could be because the standard deduction is

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Speaker 4: so high, especially for married couples filing jointly.

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Speaker 1: All right, hold with me for just a moment.

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Speaker 2: Aaron McPhee is our guest Droche Partner CPA Strategy.

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Speaker 1: Start here.

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Speaker 2: Our country is telling you today invest in clinics, ladies

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Speaker 2: and gentlemen. And this is the Michael Barry Show.

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Speaker 1: Is a guest.

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Speaker 2: He is a partner at Droch Partners, a tax strategy

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Speaker 2: firm which is sort of like CPA's on steroids or

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Speaker 2: businesses and high net worth individuals. Unlike the average person

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Speaker 2: who simply files a tax return, there are a lot

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Speaker 2: of implications to profitability. There are a lot of implications

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Speaker 2: to whether to hire people, how to classify those folks,

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Speaker 2: where to spend your money, when to spend your money,

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Speaker 2: to maximize the tax advantages or reduce the overall tax consequences,

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Speaker 2: and run your business wisely. And every business should do that.

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Speaker 2: You know, Donald Trump made that statement and Dave Chappelle.

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Speaker 2: One of my favorite Dave Chappelle bits is he said,

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Speaker 2: I knew Trump was going to win when Hillary Clinton

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Speaker 2: said Donald Trump hasn't been paying taxes and he is

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Speaker 2: there for evil. And he said, that's true. And you

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Speaker 2: wrote those laws and you chose not to change those

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Speaker 2: laws because all your rich friends wouldn't let you, So

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Speaker 2: you're disingenuous.

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Speaker 1: And I think that was one of those moments.

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Speaker 2: As Chappelle said, where people began to understand, you have

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Speaker 2: to be very wise about the law on the books,

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Speaker 2: and you need strategists behind you to help you do

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Speaker 2: that because you're not reading this boring language, I assure you.

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Speaker 1: Aaron mcpheeeder Roast Partners, is.

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Speaker 2: Our guests eron one of the things I read with

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Speaker 2: there's one hundred percent deduction for private school vouchers. And again,

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Speaker 2: it's unfair to ask you about this little little tedious stuff.

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Speaker 2: Is that something that's popped up on your screen.

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Speaker 3: I haven't dug that far into the bill yet.

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Speaker 1: Yeah, that happened to be a private don't worry.

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Speaker 2: I also saw that the five twenty nine expenditure restrictions

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Speaker 2: have been loosened so that it's not just for your

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Speaker 2: kids education, but it's also things related to education, private tuition,

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Speaker 2: and things like that. That expands the use of that fund.

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Speaker 2: And I don't know if that's made it on your

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Speaker 2: it's not a small business advisory.

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Speaker 3: Yeah, yeah, yeah.

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Speaker 4: They've expanded the coverage to include K through twelve and

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Speaker 4: some post secondary expenses, and there are higher annual contribution limits.

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Speaker 3: So that's definitely I think a benefit to.

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Speaker 4: Parents trying to figure out how they're going to pay

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Speaker 4: for the high cost of education.

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Speaker 2: Your value added in partner Partner's value added is that

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Speaker 2: what most people who run a business on a larger

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Speaker 2: scale are reading in the news is how does the

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Speaker 2: tax affect the average taxpayer? Because the reporters don't understand

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Speaker 2: the more sophisticated and complicated levels of what.

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Speaker 1: The tax needs of your clients are.

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Speaker 2: For those folks, what would you say, generally when they're

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Speaker 2: asking you, hey, how's that? How does this affect my

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Speaker 2: business or high net worth individuals, my estate, my family fund?

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Speaker 1: What do you say to those people? What are the highlights?

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Speaker 4: I tell them, you know, there's a lot of things

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Speaker 4: in this build that are beneficial especially for your business,

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Speaker 4: you know, with the most appreciate and thurn d expenditures

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Speaker 4: and other things. And there's also a new qualified small

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Speaker 4: business stock exclusion out there, so if you're a small

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Speaker 4: business owner c corporation, you can sell that at a

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Speaker 4: gain and not pay tax on the sale of that stock.

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Speaker 4: So there's a lot of really good things out there

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Speaker 4: for business owners, and so I just encourage them to

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Speaker 4: reach out to us as soon as they can. A

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Speaker 4: lot of times you'll have somebody that's running their business.

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Speaker 4: They're in the details of the day to day, and

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Speaker 4: then they come across this big transaction maybe they're going

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Speaker 4: to sell their business, and they go a certain bit

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Speaker 4: down the road and then they finally call us. But

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Speaker 4: you know, the sooner they can get us involved in

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Speaker 4: the transaction, you know, even if they're just thinking about it,

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Speaker 4: if they can call us and get us involved in that,

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Speaker 4: we can actually optimize the planning for them. So, you know,

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Speaker 4: the sooner we can get in there and help them,

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Speaker 4: you know, the more we can do. If you get

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Speaker 4: too far down the road, there's a lot of things

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Speaker 4: that are off the table as far as options.

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Speaker 2: When folks come to you and it is too late

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Speaker 2: in the process for you to be able to help

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Speaker 2: the way you would want to. Are there a couple

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Speaker 2: of things that always pop up. You go, gosh, I

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Speaker 2: wish I'd been helping you five years or even two

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Speaker 2: years ago, that we could have done differently. The way

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Speaker 2: we structured your business, the way you fund this, or

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Speaker 2: where you fund or how much you fund.

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Speaker 4: Yeah, i'd say, you know, with the growth of the business.

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Speaker 4: A lot of times it's from an estate perspective. You

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Speaker 4: want to have a lot of that appreciation pulled out

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Speaker 4: of your estate and in some sort of a planning vehicle,

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Speaker 4: like a trust or a family partnership or things like that,

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Speaker 4: so that when you do sell, you keep more of

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Speaker 4: the money that they make off the sale and don't

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Speaker 4: have to pay it to the US government.

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Speaker 2: I read a lot of newsletters and bulletins and these

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Speaker 2: advisories and wellness and finance and a number of other things.

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Speaker 1: And one of the things.

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Speaker 2: That is constant throughout is the disposition of your estate

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Speaker 2: prior to the point that you retire or die, So

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Speaker 2: beginning to shed your assets and your estate earlier and

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Speaker 2: earlier to minimize the task consequences. And it's one of

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Speaker 2: those things that I don't think most people, the average person,

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Speaker 2: the average business owner, I don't think they think on

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Speaker 2: those terms. I think they rush to the finish line

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Speaker 2: of getting the business up and selling it and maximizing

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Speaker 2: the money. But you don't realize how much you lost

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Speaker 2: in the process by not beginning the shedding process earlier.

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Speaker 4: Right, And you don't have to wait till you sell

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Speaker 4: to get rid of that extra value out.

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Speaker 3: Of your estate.

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Speaker 4: And you don't have to give up control either. There's

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Speaker 4: there's ways that we can structure things so that you

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Speaker 4: know you've made the planning and you've passed along a

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Speaker 4: lot of the value to your errors, but you still

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Speaker 4: retain control over the operations of the business. And that's

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Speaker 4: just one of the things that we can help out with.

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Speaker 2: Leif Nixon, who's one of your partners who I work

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Speaker 2: with a lot. When I ask him for show prep,

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Speaker 2: he'll send me ideas and things. And I've asked him,

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Speaker 2: people don't want to be audited, and if you don't

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Speaker 2: want to be audited, what are some and he says, well,

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Speaker 2: the things that they're looking at hard is and top

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Speaker 2: tax Defenders, which is one of our show sponsors, which

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Speaker 2: you know This is all they do is dealing with

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Speaker 2: the IRS when people are under attack. Is there the

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Speaker 2: more ten ninety nines you have, they're going to look

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Speaker 2: hard at you and the number of people that you

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Speaker 2: have as ten to ninety nine that frankly should be

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Speaker 2: employees because now they're getting not getting their taxes. That's

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Speaker 2: where they're going to go after you, whether you're the

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Speaker 2: ten ninet nine employee or the employee or you see a.

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Speaker 3: Lot of that.

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Speaker 4: Yeah, we do, actually, and that's one of the key

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Speaker 4: points that the IRS tries to look for. You know,

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Speaker 4: every business has to submit W two's ten ninety nine s.

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Speaker 4: The IRIS gets a copy of that, and there's software

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Speaker 4: crunches the numbers and looks at things. If they see

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Speaker 4: a number that's out of whack compared to other businesses

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Speaker 4: of your size or in the same industry, then they're

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Speaker 4: going to pull that and they're going to take a

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Speaker 4: look at a closer.

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Speaker 3: Look at that.

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Speaker 2: It's interesting in the old days you talk about a

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Speaker 2: red flag that this or that was. I have friends

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Speaker 2: that they won't buy a private jet because that's the

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Speaker 2: red flag. But in the old days of red flag,

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Speaker 2: a human being had to catch it with AI today.

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Speaker 2: They send this thing through the system and they say,

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Speaker 2: our algorithm tells us that if you're doing this, this,

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Speaker 2: and this, you're likely cheating.

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Speaker 3: Boy.

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Speaker 1: They it is.

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Speaker 2: Easy to flag you and narrow that down. Aaron McPhee

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Speaker 2: de Roche Partners, thank you for being with us, my man.

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Speaker 3: You bet enjoyed it.

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Speaker 1: Don't mess around with This is the Michael Barrishaw. I'm

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Speaker 1: Lacey Able.

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Speaker 2: Who got rich off of being a candidate for public

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Speaker 2: office in Georgia even though she lost, and then she

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Speaker 2: got money from the government for this sort of non

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Speaker 2: profit entity things she had. There are accounts that it

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Speaker 2: is as much as over two billion dollars. This is crazy.

443
00:25:50,119 --> 00:25:56,800
Speaker 2: She served as this sort of black woman token candidate

444
00:25:56,920 --> 00:25:59,359
Speaker 2: for a state wide office. All the money in the

445
00:25:59,400 --> 00:26:04,040
Speaker 2: world poor in mostly by white liberals, and we're being

446
00:26:04,119 --> 00:26:08,199
Speaker 2: told constantly that this is we need, we need women

447
00:26:08,320 --> 00:26:09,959
Speaker 2: of color in leadership.

448
00:26:10,040 --> 00:26:12,760
Speaker 1: In every single one of them.

449
00:26:14,280 --> 00:26:23,680
Speaker 2: Is the combination between stupid, incompetent and a crook, and

450
00:26:23,720 --> 00:26:26,080
Speaker 2: you end up with some of these. Look at Karen

451
00:26:26,119 --> 00:26:30,440
Speaker 2: Bass and mayor of Los Angeles. She is that dangerous

452
00:26:30,480 --> 00:26:38,040
Speaker 2: combination between really dumb and really really corrupt. And you

453
00:26:38,040 --> 00:26:41,639
Speaker 2: see what happens as a result. You got the guy

454
00:26:41,760 --> 00:26:45,359
Speaker 2: in Chicago who could have thought that you could be

455
00:26:45,400 --> 00:26:50,480
Speaker 2: worse than beetlejuice, and he is, and the stuff he says,

456
00:26:50,680 --> 00:26:55,639
Speaker 2: I mean, it's it's crazy, Muriel Bowser. You get you

457
00:26:55,680 --> 00:27:00,320
Speaker 2: get these mayors in in Philly and in Atlanta and

458
00:27:00,320 --> 00:27:08,040
Speaker 2: and Baltimore and Detroit, Chicago and New York and LA

459
00:27:08,320 --> 00:27:14,160
Speaker 2: and New Orleans. And they are black now black women,

460
00:27:14,240 --> 00:27:20,239
Speaker 2: that's the big thing. And they can't stream together a

461
00:27:20,280 --> 00:27:26,000
Speaker 2: sentence and they're screeching all the time, just just loud

462
00:27:27,400 --> 00:27:32,280
Speaker 2: and disorganized, and it's it's like this game. You end up,

463
00:27:32,359 --> 00:27:34,920
Speaker 2: you know, they end up having a tragedy in their community,

464
00:27:35,200 --> 00:27:38,119
Speaker 2: and you end up finding out the fire chief is

465
00:27:38,160 --> 00:27:44,760
Speaker 2: some left handed lesbian missing her left foot, who dropped

466
00:27:44,760 --> 00:27:50,800
Speaker 2: out of high school too lord knows what, and has

467
00:27:50,880 --> 00:27:53,679
Speaker 2: never worn a fire department uniform. Oh but she's a

468
00:27:53,800 --> 00:28:01,720
Speaker 2: left handed lesbian first mayor to qualify under all of

469
00:28:01,760 --> 00:28:06,040
Speaker 2: this stuff. And you just see that cities are collapsing,

470
00:28:07,200 --> 00:28:11,800
Speaker 2: I mean absolutely collapsing. It's like somebody's going in and

471
00:28:12,320 --> 00:28:16,840
Speaker 2: cutting the rafters. I had a classmate in college named

472
00:28:16,840 --> 00:28:20,720
Speaker 2: Mark McKillop, and Mark was older than the rest of

473
00:28:20,800 --> 00:28:25,760
Speaker 2: us because he had been a New York firefighter I

474
00:28:25,760 --> 00:28:30,800
Speaker 2: think NYPDA, and he went into a fire and the

475
00:28:30,840 --> 00:28:38,240
Speaker 2: owner had clipped the rafters so that when the fire started,

476
00:28:39,280 --> 00:28:42,000
Speaker 2: the roof would collapse and he'd have one hundred percent loss.

477
00:28:44,920 --> 00:28:47,920
Speaker 2: There are various versions of lightning that this is referred

478
00:28:47,920 --> 00:28:51,240
Speaker 2: to as different groups of people depending on who somebody

479
00:28:51,280 --> 00:28:56,880
Speaker 2: doesn't like. But the point is insurance fraud through arson

480
00:28:57,360 --> 00:29:04,640
Speaker 2: is not so uncommon, and the firefighters didn't know when

481
00:29:04,680 --> 00:29:08,240
Speaker 2: they train the fire has been burning for this amount

482
00:29:08,240 --> 00:29:10,520
Speaker 2: of time, there should be this amount of time for

483
00:29:10,720 --> 00:29:15,840
Speaker 2: the roof before it collapses, and my buddy Mark McKillop

484
00:29:15,880 --> 00:29:18,760
Speaker 2: had no idea that the rafters had been cut to

485
00:29:18,800 --> 00:29:21,800
Speaker 2: maximize damage. So the roof falls on and breaks his back.

486
00:29:23,520 --> 00:29:27,360
Speaker 2: He uses the settlement he got from the NYPD as

487
00:29:27,400 --> 00:29:30,920
Speaker 2: pretty good. I mean, NYFD has a pretty good program

488
00:29:30,960 --> 00:29:33,600
Speaker 2: for all this, and so he's going to get whatever

489
00:29:33,640 --> 00:29:35,360
Speaker 2: it is, forty fifty thousand dollars for the rest of

490
00:29:35,360 --> 00:29:37,640
Speaker 2: his life. And he decides, well, it's a lot cheaper

491
00:29:37,680 --> 00:29:41,160
Speaker 2: down in Texas. I want to start anew I want

492
00:29:41,200 --> 00:29:44,160
Speaker 2: to go finish my college degree, and so he did,

493
00:29:45,160 --> 00:29:49,719
Speaker 2: came to City of Houston, went to the University of Houston,

494
00:29:50,200 --> 00:29:53,000
Speaker 2: and we had a really good newspaper there. I worked

495
00:29:53,040 --> 00:29:55,840
Speaker 2: there selling ads my first year of college. It's called

496
00:29:55,840 --> 00:29:58,040
Speaker 2: The Daily Cougar. I don't know if it's any good anymore,

497
00:29:58,040 --> 00:30:01,240
Speaker 2: but back then it was wonderful. And he was the

498
00:30:01,360 --> 00:30:04,840
Speaker 2: lead columnist. And I'm going to tell you something I

499
00:30:04,880 --> 00:30:08,280
Speaker 2: grew up. Some of you probably did as well. Uh

500
00:30:08,360 --> 00:30:09,600
Speaker 2: did you read a columnist?

501
00:30:09,640 --> 00:30:10,120
Speaker 1: Growing up?

502
00:30:11,160 --> 00:30:14,880
Speaker 2: I read Mike Royko and Stories of the Billy Goat

503
00:30:14,920 --> 00:30:20,760
Speaker 2: Tavern in Chicago, and I thought Mike Royko was a

504
00:30:20,840 --> 00:30:24,640
Speaker 2: start and finish. I would read Royko, I would read

505
00:30:24,640 --> 00:30:28,840
Speaker 2: William F. Buckley, I would read Deer Abbey, I would

506
00:30:28,880 --> 00:30:40,600
Speaker 2: read Anne Landers, Uh Lake Willbegun Days, Garrison Keeler. Anyway,

507
00:30:41,520 --> 00:30:44,800
Speaker 2: Mark McKillop was in this line of writers. I don't

508
00:30:44,840 --> 00:30:48,960
Speaker 2: know why he stopped writing. He was fantastic had I'd

509
00:30:48,960 --> 00:30:51,240
Speaker 2: be in peels of laughter every week when his column

510
00:30:51,240 --> 00:30:55,040
Speaker 2: would come out. It was like this professional superstar columnist,

511
00:30:55,280 --> 00:30:58,320
Speaker 2: but in the local, but in the in the community paper.

512
00:30:59,640 --> 00:31:00,200
Speaker 1: Anyway.

513
00:31:00,680 --> 00:31:03,520
Speaker 2: I brought all that up to tell the story about

514
00:31:04,600 --> 00:31:08,080
Speaker 2: damage was maximized, which is why he ends up breaking

515
00:31:08,120 --> 00:31:13,560
Speaker 2: his back despite his training of what we were doing there, Jim,

516
00:31:13,600 --> 00:31:15,560
Speaker 2: what was I talking about that I got off on

517
00:31:15,640 --> 00:31:20,960
Speaker 2: that maximized Oh oh, these elected officials. So these Stacey

518
00:31:21,080 --> 00:31:27,040
Speaker 2: Abrams type people, they just keep Lena Hidalgo's one of these.

519
00:31:27,680 --> 00:31:31,040
Speaker 2: They just keep putting them out there. And I get

520
00:31:31,080 --> 00:31:35,280
Speaker 2: emails every day for people who say, Michael, I just

521
00:31:35,360 --> 00:31:37,200
Speaker 2: can't believe this person said this.

522
00:31:37,280 --> 00:31:39,080
Speaker 1: And it's aoc or ilhano Omara.

523
00:31:41,480 --> 00:31:45,280
Speaker 2: I am more bothered by that statement than I am

524
00:31:45,360 --> 00:31:49,880
Speaker 2: the stupid statement that has upset the person. The people

525
00:31:49,920 --> 00:31:54,360
Speaker 2: who say, well, Texas got what they wanted, that Texas

526
00:31:54,400 --> 00:31:57,360
Speaker 2: got what they deserve. Those little white girls, the people

527
00:31:57,360 --> 00:32:03,200
Speaker 2: who say evil things like that, I hate that. But

528
00:32:03,360 --> 00:32:09,520
Speaker 2: I spend more sleepless time worrying about the emails I

529
00:32:09,600 --> 00:32:13,840
Speaker 2: get from people who say, how can they say that?

530
00:32:16,240 --> 00:32:23,880
Speaker 2: I just wonder when a family gets taken over by

531
00:32:23,920 --> 00:32:28,640
Speaker 2: the cartels and they're being executed one by one, how

532
00:32:28,680 --> 00:32:31,960
Speaker 2: far into the process someone says, they really don't seem

533
00:32:32,000 --> 00:32:35,160
Speaker 2: like they're really nice people. I don't think they're here

534
00:32:35,200 --> 00:32:41,440
Speaker 2: to help us clean the house up. I guess none

535
00:32:41,480 --> 00:32:44,920
Speaker 2: of us are doing our job. Maybe we screech too much.

536
00:32:44,960 --> 00:32:48,400
Speaker 2: Maybe it's chicken little. Maybe there's too much noise, maybe

537
00:32:48,440 --> 00:32:52,080
Speaker 2: people are numb to it. If I could just get

538
00:32:52,120 --> 00:32:58,360
Speaker 2: people to understand, you don't have an honest disagreement with

539
00:32:58,960 --> 00:33:04,560
Speaker 2: Stacy Abrams. You don't have an honest disagreement UH with

540
00:33:04,560 --> 00:33:05,080
Speaker 2: with h.

541
00:33:06,720 --> 00:33:08,160
Speaker 1: Who is a Buddha gig.

542
00:33:10,680 --> 00:33:16,120
Speaker 2: Or uh Barack Obama or Sheila Jackson Lee or that

543
00:33:16,240 --> 00:33:17,480
Speaker 2: Democrat in the office that you.

544
00:33:17,560 --> 00:33:20,720
Speaker 1: Kind of halfway like. You don't have an honest disagreement

545
00:33:20,680 --> 00:33:20,840
Speaker 1: with this.

546
00:33:23,120 --> 00:33:26,120
Speaker 2: They will have you believe that because that keeps you

547
00:33:26,200 --> 00:33:28,440
Speaker 2: coming back from more, that keeps you from firing them,

548
00:33:28,480 --> 00:33:31,120
Speaker 2: that keeps you from from boycotting them, that keeps you

549
00:33:31,160 --> 00:33:34,880
Speaker 2: from You're gonna have to understand these people are much

550
00:33:35,040 --> 00:33:37,320
Speaker 2: less things US has left.

551
00:33:38,520 --> 00:33:40,120
Speaker 1: Thank you, I mean, good night,