Dr. Vance Ginn - Economist, Ginn Economic Consulting Joins Houston's Morning News

Episode Transcript

Speaker 1 (00:01):
Yeah, Well, we've been living high on the hog having
we seven twenty two is her time here in Houston's
warning you, especially the United States government. And despite all
the good talk, Republicans have not been very good when
it comes to being conservatives with money. They they spend
as good as Democrats have spent. Except now maybe we're
headed in the right direction. Well, let's ask doctor Vanskin

(00:22):
economists to gain economic consulting. I guess we need to
start because the passage today vance with the Big Beautiful Bill.
I'm sure you've taken an in depth look at it.
Is this good or bad for reigning in the debt?

Speaker 2 (00:38):
Hey, it's a pleasure with it this morning. And you're right.
This has been a Republican and Democrat problem over the years.
And the one Big Beautiful Bill is what they're calling.
It was passed this morning by one vote, fifteen to two. Fourteen.
The House Freedom Caucus, including Chip Roy from Texas, I think,
helped improve the bill. And it looks like there's going
to be, you know, quite a bit of spending reductions.

(01:00):
I don't know if they're cuts, but they're spinning reductions
over the next decade along with extending and making permanent
much of the Trump tax cuts at twenty seventeen that
expired at the end of this year. So I think
there were some good things. I'm still a little concerned
because a lot of the spinning reductions are put out
in the out years twenty six, twenty seven to twenty
eight versus a lot of the other things, like the

(01:21):
salt deduction capped at forty thousand, which will start this year.
So let's see what happens. But now it's going to
move to the Senate and hopefully they can make some
more improvements.

Speaker 1 (01:31):
Yeah, I think a lot of people have a hard
time wrapping their minds around the salt deduction. Maybe we
need to go into a little bit of detail that
the Northern Republicans, the modern Republicans, the ones that come
from blue states, were the ones that were holding it
up over increasing the salt deduction that state in local
taxes is what salt stands for. And where they were
having a problem was is the cap that they wanted

(01:53):
in the original bill they wanted to put on. I
think it was like ten thousand dollars was the cap, which,
in other words, you could only write off ten thousand
dollars dollars on your federal taxes worth of state and
local taxes, and now they've increased that to forty thousand.
That helps out I think the only thing that bothers
me about that that helps a lot of Democrat governors
in blue states. It does.

Speaker 2 (02:14):
Yeah, yeah, it helps out the governors, and it helps
out the local government politicians too because they can spend
tax more and then those folks can write it off
at the federal level. And so at the end of
the day, you know, Jimmy, I would like to see
that be zero. There should be no salt deduction, because
every dollar that you pay in taxes at the state
and local level, you should feel that and then hopefully

(02:35):
vote differently for those folks who are spending and taxing
too much. And so what it really ends up being
is a huge redistribution from lower tax states like Texas
and Florida to higher tax states like California and New York.
And so I think this was a bad move as
part of this bill.

Speaker 1 (02:51):
Yeah, well, unfortunately, I guess that was the deal that
had to be made to get the support necessary to
get the rest of it. No taxes, no taxes on tips,
everybody everything. I couldn't incentive. Voted one hundred and nothing
in favor of no taxes on tips, So obviously there's
Jill agreement on that. Although I had Troy nails sound
earlier this morning one of our representatives from Texas and

(03:13):
I asked him about Social Security. I was hoping that
they were going to include your ability to not be
taxed on your Social Security benefits, but that did not
make it through.

Speaker 2 (03:23):
Yeah, no, that's right, that's right, and there I believe
it also made through is the no tax on overtime.
And so it's going to be interesting too because as
you know, Jimmy and you know I talked about this
over the years of that incentives matter and that's the
one number one thing in economics. And if you're not
taxed on tips, this is going to be really interesting
to see what happens if many people take that incentive

(03:43):
and say, you know what, instead of getting paid the
contractor or something else, I'll just take tips and then
not have to pay taxes on it. So this could
be an interesting change in the way that people do
business across the economy. I mean, when we go and
pay on the little kioskar and our our an iPad
or something else at different places. Today they're already making you,

(04:04):
asking you for a tip every single payment. We may
see a lot more of that in the future.

Speaker 1 (04:09):
I think you might be right about that, all right, Doctor,
get always a pleasure, sir. Have a great Memorial Day,
Doctor Vanskin, Economist, That Gain Economic Consulting, seven twenty six