Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
This is John Mounts. And ever since the big beautiful
Bill has been passed, I've been getting questions from all
sorts of people about what does it mean to them?
What does it mean to them in terms of tax
on tips, in terms of tax on social securities, in
terms of tax on just about everything. Joining me now
to talk about the bill and the legislation and how
it will deliver results of the American people is Grover
(00:21):
Norquist from Americans for Tax Reform. Grover, welcome to the show.
Speaker 2 (00:25):
Absolutely, good to be with you.
Speaker 1 (00:27):
Great to be with you, Grover. So break it down
for us. What are some of the things the American
people will see from this bill? What are things that
are we're going to see that are going to change
our lives for the better.
Speaker 2 (00:38):
Okay, first big thing you're going to not see is
what would have happened if no bill at all had passed,
If no bill had passed, if the Democrats had won,
the Democrats all voted against the legislation, if they had
got enough votes, then your per child tax credit would
(00:59):
have been cut and half. Instead, it will remain at
two thousand dollars and go up. It'll be increased and
into the years into the future, so it would have
gone to one thousand if the Democrats had won. It's
now at two thousand plus with the dictory in part deduction.
(01:22):
That's per child. That's per child, yes, more children, more
tax credits than the standard deduction for an individual or
a couple was going to fall in half if this
bill had not passed, because remember the Republicans doubled the
standard deduction, which is how much you or you and
(01:42):
a spouse have to earn before you pay any tax
at all, how much taxable income you have. In twenty
twenty five, that standard deduction is going to go up
by fifteen hundred dollars for married couples and twenty five
per individual, okay for heads of households. So it will increase.
(02:05):
But had we not passed this bill, it would have
fallen in the half. So those two things are rather stark.
And any Democrat who voted against this, you have to
remember he was talking about thousands of dollars out of
your pocket. So the small business tax cut the pastors,
(02:28):
people who started a company inside their own personal income
tax returns because they were selling something on the side,
and then they got bigger. There are about twenty million
small businesses that operate as pastors. There's no corporate income tax,
it's just the individual income tax, and so the rate
(02:49):
they pay is the rate that a person would pay
if they made as much money as the little business does.
The rate there was reduced in order to keep the
rate down closer to what it is for regular businesses.
The other one that's going to be changing the world,
(03:09):
but you probably won't see it in the terms of directly,
is expensive. For forty years, we wanted to go from
long depreciation schedules. A company wants to build a new
factory with new equipment, and then they pay for that
equipment million dollars. They only get to depreciate it like
(03:29):
over ten, twenty, or sometimes thirty years, which means it's
very expensive to buy new equipment to make you more productive,
whether it's computers or truck larger trucks, better trucks, better equipment,
better tractors for farmers, all of those things make you
more productive, make you get paid more because you do
more in the same hour than you did before you
had the additional equipment. By expensing, you say to a business,
(03:53):
you buy a million dollars for new equipment to make
your workers more effective and productive. You don't pay taxes
on that because that's not income. That is an expenditure.
You don't have it as opposed to paying taxes as
if you still have this cash in your hand, which
is crazy to sound what we used to do. That
(04:15):
expensing was temporary under the first Trump tax cut. It
is now permanent. And when economists look at this bill,
they point to some of these expensing measures. Expensing also
for research and development, also to create more jobs and
to make people more productive, and a number of other
(04:36):
efforts that people make, companies make to make you more productive.
They get to expense that. That doubles the growth that
will flow from this rate, from this effort from the
tax cut, we're looking at three percent growth a year
going into the future. That together will raise four trillion
dollars through growth, not through higher taxes from a lower
(04:59):
tax here, but less destructive taxes, and that will bring
in four trillion dollars over the next decade to reduce
the deficit and to make sure we don't have to
raise taxes because you'd rather have growth. So you're looking
at no tax on tips. That means up to twenty
five thousand dollars that you don't have to pay tax
(05:20):
on that income, and that just goes into your There
are different ways to do it, whether you're getting paid
with credit cards or cash, but basically the way to
think of it as if you earn up to twenty
five thousand dollars in tips, you can take that and
count that as not income. It's deductible from your income,
(05:41):
and that will make it easier for you to keep
more of your money.
Speaker 1 (05:46):
Robert, let me ask let me ask you this one,
because I ad this question from a listener. What about
Social Security? Is there going to be taxed? Are you
going to be taxed on your Social Security income?
Speaker 2 (05:55):
Because in order to do this, what they're looking to
do is to have I think got to about a
six thousand dollars deduction against your income, so that if
you made x amount of money, deduct six thousand dollars.
That's not all of your Social Security, but it's the
beginning of taking Social Security payments off of income that
(06:18):
you have to pay taxes on. So a six thousand
per eligible filer, and there is a there's an income
cap if you're making more than a certain amount of money.
Seven hundred thousand dollars, then it doesn't kick in, but
for most Americans it would. And so I guess some
(06:38):
of this is kind of complicated.
Speaker 1 (06:40):
As you, tax code is very complicated. I was basically
looking for one hundred thousand foot view of it, Grover.
But the bottom line is the big, beautiful bill is
great for not only individual taxes, but it will be
great for the economy. Grovern, request from America, President of
Americans for tax reform. Thank you so much for joining
us this morning on Alabama's Morning News
This is John Mounts. And ever since the big beautiful
Bill has been passed, I've been getting questions from all
sorts of people about what does it mean to them?
What does it mean to them in terms of tax
on tips, in terms of tax on social securities, in
terms of tax on just about everything. Joining me now
to talk about the bill and the legislation and how
it will deliver results of the American people is Grover
(00:21):
Norquist from Americans for Tax Reform. Grover, welcome to the show.
Speaker 2 (00:25):
Absolutely, good to be with you.
Speaker 1 (00:27):
Great to be with you, Grover. So break it down
for us. What are some of the things the American
people will see from this bill? What are things that
are we're going to see that are going to change
our lives for the better.
Speaker 2 (00:38):
Okay, first big thing you're going to not see is
what would have happened if no bill at all had passed,
If no bill had passed, if the Democrats had won,
the Democrats all voted against the legislation, if they had
got enough votes, then your per child tax credit would
(00:59):
have been cut and half. Instead, it will remain at
two thousand dollars and go up. It'll be increased and
into the years into the future, so it would have
gone to one thousand if the Democrats had won. It's
now at two thousand plus with the dictory in part deduction.
(01:22):
That's per child. That's per child, yes, more children, more
tax credits than the standard deduction for an individual or
a couple was going to fall in half if this
bill had not passed, because remember the Republicans doubled the
standard deduction, which is how much you or you and
(01:42):
a spouse have to earn before you pay any tax
at all, how much taxable income you have. In twenty
twenty five, that standard deduction is going to go up
by fifteen hundred dollars for married couples and twenty five
per individual, okay for heads of households. So it will increase.
(02:05):
But had we not passed this bill, it would have
fallen in the half. So those two things are rather stark.
And any Democrat who voted against this, you have to
remember he was talking about thousands of dollars out of
your pocket. So the small business tax cut the pastors,
(02:28):
people who started a company inside their own personal income
tax returns because they were selling something on the side,
and then they got bigger. There are about twenty million
small businesses that operate as pastors. There's no corporate income tax,
it's just the individual income tax, and so the rate
(02:49):
they pay is the rate that a person would pay
if they made as much money as the little business does.
The rate there was reduced in order to keep the
rate down closer to what it is for regular businesses.
The other one that's going to be changing the world,
(03:09):
but you probably won't see it in the terms of directly,
is expensive. For forty years, we wanted to go from
long depreciation schedules. A company wants to build a new
factory with new equipment, and then they pay for that
equipment million dollars. They only get to depreciate it like
(03:29):
over ten, twenty, or sometimes thirty years, which means it's
very expensive to buy new equipment to make you more productive,
whether it's computers or truck larger trucks, better trucks, better equipment,
better tractors for farmers, all of those things make you
more productive, make you get paid more because you do
more in the same hour than you did before you
had the additional equipment. By expensing, you say to a business,
(03:53):
you buy a million dollars for new equipment to make
your workers more effective and productive. You don't pay taxes
on that because that's not income. That is an expenditure.
You don't have it as opposed to paying taxes as
if you still have this cash in your hand, which
is crazy to sound what we used to do. That
(04:15):
expensing was temporary under the first Trump tax cut. It
is now permanent. And when economists look at this bill,
they point to some of these expensing measures. Expensing also
for research and development, also to create more jobs and
to make people more productive, and a number of other
(04:36):
efforts that people make, companies make to make you more productive.
They get to expense that. That doubles the growth that
will flow from this rate, from this effort from the
tax cut, we're looking at three percent growth a year
going into the future. That together will raise four trillion
dollars through growth, not through higher taxes from a lower
(04:59):
tax here, but less destructive taxes, and that will bring
in four trillion dollars over the next decade to reduce
the deficit and to make sure we don't have to
raise taxes because you'd rather have growth. So you're looking
at no tax on tips. That means up to twenty
five thousand dollars that you don't have to pay tax
(05:20):
on that income, and that just goes into your There
are different ways to do it, whether you're getting paid
with credit cards or cash, but basically the way to
think of it as if you earn up to twenty
five thousand dollars in tips, you can take that and
count that as not income. It's deductible from your income,
(05:41):
and that will make it easier for you to keep
more of your money.
Speaker 1 (05:46):
Robert, let me ask let me ask you this one,
because I ad this question from a listener. What about
Social Security? Is there going to be taxed? Are you
going to be taxed on your Social Security income?
Speaker 2 (05:55):
Because in order to do this, what they're looking to
do is to have I think got to about a
six thousand dollars deduction against your income, so that if
you made x amount of money, deduct six thousand dollars.
That's not all of your Social Security, but it's the
beginning of taking Social Security payments off of income that
(06:18):
you have to pay taxes on. So a six thousand
per eligible filer, and there is a there's an income
cap if you're making more than a certain amount of money.
Seven hundred thousand dollars, then it doesn't kick in, but
for most Americans it would. And so I guess some
(06:38):
of this is kind of complicated.
Speaker 1 (06:40):
As you, tax code is very complicated. I was basically
looking for one hundred thousand foot view of it, Grover.
But the bottom line is the big, beautiful bill is
great for not only individual taxes, but it will be
great for the economy. Grovern, request from America, President of
Americans for tax reform. Thank you so much for joining
us this morning on Alabama's Morning News
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