{"id":227880,"date":"2017-04-03T13:00:00","date_gmt":"2017-04-03T17:00:00","guid":{"rendered":"https:\/\/admin.rushlimbaugh.com\/?p=227880"},"modified":"2017-04-04T16:07:03","modified_gmt":"2017-04-04T20:07:03","slug":"tax-cuts-are-the-last-thing-they-want-to-do-in-washington","status":"publish","type":"post","link":"https:\/\/admin.rushlimbaugh.com\/daily\/2017\/04\/03\/tax-cuts-are-the-last-thing-they-want-to-do-in-washington\/","title":{"rendered":"Tax Cuts Are the Last Thing They Want to Do in Washington"},"content":{"rendered":"

RUSH: You know, I have a buddy. I have a very good friend that some of you probably would know the name. The guy was an ardent Trump supporter, just loved Trump. I just thought it was generic. I thought he liked Trump just for generic reasons. Turns out, he was really for Trump for two specific reasons, and the top reason was tax cuts — and this guy is livid. This guy is livid. He sends me emails almost daily about feeling betrayed and angry every time he sees a story — and there\u2019s just a new one out.<\/p>\n

\"\"AP: “Congress Not Seen Taking up Tax Cuts Any Time Soon.” The guy gets livid, blows a gasket. He sends me the note and wants me to dump all over him. And whenever Drudge highlights tax revenues been created by property taxes or income taxes or sales tax — which, Drudge has been reporting those numbers — this guy says, “See? See? They\u2019re raking in money. (sputtering) The — the — the — the — the — the — the…” He goes nuts. So I finally wrote him back; I said, “Do you remember all of these debates we\u2019ve had over the last 2-1\/2 decades about tax reform?”<\/p>\n

“Yeah.”<\/p>\n

“Remember the flat tax?”<\/p>\n

“Yeah.”<\/p>\n

“Remember the FairTax?”<\/p>\n

“Yeah.”<\/p>\n

“You remember all these different reforms and these various new brackets resulting from tax cuts?”<\/p>\n

“Yeah.”<\/p>\n

I said, “Why do you think it hasn\u2019t ever happened?”<\/p>\n

“Because we\u2019ve never elected anybody that really wanted to do it. But now we have.”<\/p>\n

\"\"I said, “Yeah, and where is it?” So I wrote him back. I said, “I gotta remind you of something,” \u2019cause I have taken big hits on this program for not getting behind all these various reforms. I mean, there have been various members of Congress pushing the FairTax, and when I didn\u2019t used to it up as a giant champion of the cause, I would hear from some of the organizers: “Why don\u2019t you help us out on this?” I said, “Because I can\u2019t do everything.”<\/p>\n

But the real reason, folks… (sigh) Look, spending money is the job. That\u2019s what you get to do when you are elected to federal office. In the House, in the Senate, White House, you get to spend the money. And it is your job to spend the money. I can\u2019t tell you the number of senators I\u2019ve spoken to who describe their job to me. I\u2019ve had three of them describe their job to me this way: “I\u2019m in charge of one one-hundredth of the federal budget, Rush.”<\/p>\n

I said, “What do you mean?”<\/p>\n

“Well, there\u2019s only a hundred of us, and when the vote comes up, I\u2019m one of a hundred people in the Senate that gets to determine how much is gonna get spent and where.” The tax code… Here\u2019s the real answer to all this: The tax code is the single biggest source of power that elected officials have. They use it for social architecture. They use it to stoke certain areas of our economy and penalize others.<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: Snerdley\u2019s back there (chuckling), “Are you saying we\u2019re not gonna get tax cuts?”<\/p>\n

I\u2019m telling you that Trump may have meant it when he campaigned on them. And the Republicans may have meant it when they campaigned on it, but do you see it? What do you see every time tax cuts are in the news, the news is what? “Well, I don\u2019t know if we\u2019re gonna be able to get through it this year. Well, if we do get to it, we might be able to take it up by August, just in time for the first of three big recesses.” My friend doesn\u2019t think we\u2019re getting it. My friend has figured out we\u2019re not gonna get tax cuts, and he\u2019s livid. He\u2019s livid.<\/p>\n

He believes that tax cuts, in his bracket, is gonna be the fastest way to more disposable income for him. He doesn\u2019t think that he can go out and get a new job or new career that\u2019s gonna pay him demonstrably more than he\u2019s making, and tax cuts… You take the rate from 39% to 36% or 39% to 33%, that can add up, depending on… That can add up to a lot of time money, could be a nice chunk of change. It could equal a pretty good raise or more so, and this guy has been totally planning for it. (interruption)<\/p>\n

Well, they were gonna reduce the corporate tax to get that down from whatever it is and then try to repatriate some American money held overseas. They were gonna try to do something on the capital gains tax. Trump was even talking about eliminating carried interest, which is the tax that the hedge fund guys love because it allows them to declare earned income as capital gains with a 15% rate instead of 39%. Trump\u2019s talking getting rid of that. But the point is there isn\u2019t any action on it. I don\u2019t mean to be cynical here, but I\u2019m just telling you.<\/p>\n

That\u2019s a tremendous power that I have never believed members of Congress are going to willingly sign off on. Now, that is more applicable to the idea of tax reform. I mean, I love this idea of a single rate flat tax, FairTax. That\u2019s what I never see happening, folks. Not unless there\u2019s term limits and you end up with people that are gonna be brand-new in office. It\u2019s too much power. Look at just the home mortgage deduction alone. Look at the power just in that instance. In fact, there is a story… It\u2019s interesting that I mention that.<\/p>\n

\"\"There\u2019s a story in the Stack today about how home ownership is plunging. Largely it\u2019s because Millennials don\u2019t want to buy houses, supposedly, just like Millennials didn\u2019t want to buy cars — until now they do. This is all gonna change as Millennials age. Remember, Millennials don\u2019t think they\u2019re adults until their 30 now. When they\u2019re 25, they\u2019re still in day care. At 28, they\u2019re still in day care. They\u2019re gonna eventually buy homes. But right now they\u2019re renting because there\u2019s more flexibility and mobility and they don\u2019t have to have a down payment and student loan debt and all that.<\/p>\n

So there\u2019s panic on because people aren\u2019t buying homes at a replacement level rate. So the home-building business and the real estate business is under pressure. And the home mortgage deduction, the interest deduction, where do you think that originated? I mean, I\u2019m not talking about when, but it originated because the home industry, real estate or builders\u2019 lobbies were sufficiently powerful enough to convince Congress to allow a tax deduction for interest on mortgages. Do you realize how much that was used to sell houses?<\/p>\n

The mortgage interest deduction — and really they weren\u2019t selling houses. They were selling monthly payments, and the monthly payment was even made more affordable by deducting the interest. And there have been talks over him the years about removing it and people caterwauled. Just like people had a fit when they did remove, in \u201986, the interest on your credit card bill. That used to be deductible too. When that was taken away as part of the \u201986 tax reform? (snorts) I was there, folks.<\/p>\n

For two weeks we had nothing but rage on the phones on this program. And I tried to tell people, “Do you realize you\u2019re gonna be better off with this? You\u2019re out spending money to get a deduction?” But they wanted… People love the idea of deductions. You know why? ‘Cause they think that\u2019s what the rich people do. Rich people get rich by not paying taxes and one of the ways they don\u2019t pay taxes is they get to deduct everything.<\/p>\n

So if you get to deduct a little bit of your credit card interest, “Yeah, man, I\u2019m screwing somebody.” Same thing with the home mortgage interest. It will never be taken away as long as the realtor lobby and the home builder lobby remains powerful and as long as owning a home is part of the definition of the American dream, the mortgage interest deduction will survive.<\/p>\n

Mr. Snerdley, I\u2019m not saying it\u2019s never gonna happen. I\u2019m just saying tax reform, this flat tax, FairTax, single rate, that I won\u2019t believe will happen in my lifetime. I don\u2019t think it\u2019s ever gonna happen because every one of those plans ends deductions. In exchange for the rate, there aren\u2019t any deductions.<\/p>\n

Well, here came the charities. “You can\u2019t do that. Why, people donate to charities in part for the deduction, and if you\u2019re gonna take that away, our charity\u2019s not gonna survive, it\u2019s gonna be horrible.” And the fair and flat tax people, “A lot of people are gonna be in the same boat, you gotta make it up on your own.” The deduction is not that big anyway. It\u2019s too much power. It\u2019s the single greatest power members of Congress and the Senate have. I brought it up many, many years because it is, the social architecture alone, the power to buy votes, the power to shape the culture the way you want it.<\/p>\n

Look at Obama taxing medical devices. What do you think that was really all about? Well, it was to kill the medical device industry, but then there was a — remember how — you\u2019ve forgotten this. Remember how certain sexual aids got tossed into that category? Yeah, yeah, yeah. Now, what\u2019s your question? You said you had a question, since I brought this up. What do you mean since I brought this up? What\u2019s the question? Right, Trump\u2019s talking about rebuilding the military, more billions and billions, and infrastructure spending, more billions and billions, and you\u2019re wondering how does tax cuts figure with all that?<\/p>\n

\"\"Well, again, I still believe that Trump\u2019s infrastructure plan is going to feature funding mechanisms that, while not unique, are funding mechanisms that we haven\u2019t seen in a while? I think this business of using public money with private money is a real idea. And I think Trump can bring it off. I think there are certain people that would be happy to participate in the rebuilding of an airport if there\u2019s equity in it. Rebuilding a bridge if their name\u2019s on it, rebuilding a highway if they get to erect a rest area with a casino in it. Who knows.<\/p>\n

I haven\u2019t heard of that. I\u2019m just suggesting here that the opportunity for private money participation in this is not something I consider to be out of the realm of possibility. But on the business of tax cuts — I just wanted to mention this because my friend is beside himself. He literally thought that was gonna be the first thing Trump did. And I don\u2019t know where Trump is. Trump may indeed want it. I\u2019m just telling you it\u2019s going to be the most difficult thing because it\u2019s the last thing they really want to do. And they can always say, “We can\u2019t take to do tax cuts. Look at the deficit, Rush. Look at the national debt, Rush. Why, they just keep exploding out there. Remember, if we cut taxes over here, we gotta figure out where to pick it up over there.”<\/p>\n

They never do with any less in government. So if they give you a tax cut, they\u2019ve gotta find the money they\u2019re giving back to you from somewhere else in the form of a tax increase or some other fee or what have you. It\u2019s just common sense. Tax cuts are a tough thing because that\u2019s a direct giveaway of an incredible amount of power that elected members of the federal government have.<\/p>\n

I did not mean to spend this much time on this, but, as usual, when I get going on things, all avenues are explored. And so that\u2019s that. But that\u2019s the answer on tax cuts. I\u2019m trying to help my friend through this, but I don\u2019t think anything can help him. I mean, he\u2019s literally ready to abandon Trump over this. Ticked off as he can be, despite my supremely logical explanation, it doesn\u2019t help. In fact, I\u2019m making him feel worse. “Well, the way you\u2019re talking, it\u2019s never gonna happen.” I\u2019m not saying never gonna happen. Tax reform, flat tax, fair, yeah, maybe not in our lifetimes. Tax cuts, I do believe they\u2019re gonna happen. I just don\u2019t think they\u2019re the priority, and they haven\u2019t been in a while.<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: One thing on the tax cuts, and I think you have to keep something in mind. Remember who\u2019s reporting this. It\u2019s the Drive-By Media. And I think it\u2019s all part of the agenda. Any time the Drive-Bys are reporting there\u2019s not gonna be this element of the Trump agenda any time soon or that element, you need to be very suspicious. You need to dial it back before you believe it and accept it.<\/p>\n

Look at what Trump\u2019s been doing. Trump has been meeting with business leaders seemingly every week for the last 70 days. They have all asked him, they have all told him they need tax cuts and regulations eliminated. And Trump comes out of these meetings and says so, that he\u2019s gonna do this, and these people in the meetings come out and say it\u2019s best meetings they\u2019ve ever been in, of this kind.<\/p>\n

And then Trump administration officials have said that they hope to have this done or at least be started by August, and yet every week there\u2019s a Drive-By Media story that says, “No tax cuts any time soon,” and it\u2019s from the usual nameless sources speaking on the case of anonymity here because they\u2019re not permitted to speak about these things. So I wouldn\u2019t give up yet. Trump\u2019s achievements, particularly in unraveling a lot of Obama administration initiatives, is profound.<\/p>\n","protected":false},"excerpt":{"rendered":"

RUSH: You know, I have a buddy. I have a very good friend that some of you probably would know the name. The guy was an ardent Trump supporter, just loved Trump. I just thought it was generic. I thought he liked Trump just for generic reasons. 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