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Trump's possible tax cuts would benefit most Americans: Grover Norquist - YouTube
Channel: Fox Business
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bringing Grover we got we've got
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Americans for Tax Reform President
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Grover Norquist with us this morning
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Grover good to have you thanks so much
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for being here
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absolutely so you're hearing the
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conversation Grover way in here the
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president is weighing options to spur
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the economy like potential capital gains
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tax like a potential payroll tax what's
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your view well he put two things on the
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table and the difference between them is
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that indexing capital gains so you don't
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tax inflation and capital gains can be
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done unilaterally by the president the
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Supreme Court ruled that in 2002 so
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that's no longer a legal question and
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the president said yesterday I can do
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this myself here the Treasury secretary
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could do that and the advantage there is
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once you do it half of Americans own
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plus own homes half of Americans Plus
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are in the stock market you can't argue
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this as a tax cut for the 1% it's a tax
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cut for everybody over 55 who've held
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homes and and houses an immediate tax
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cut very quickly benefits anyone who's
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25 and starting their life because their
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assets are worth more if you go with the
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tax cut on Social Security as a
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suggestion the Democrats immediately go
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sure we'll pay for it by raising the
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Social Security business tax throw it
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right back so because Nancy Pelosi has
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to agree to any change in the Social
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Security tax and the Democrats have
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never done that when they had the power
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to do it they would just play politics
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with it the president will likely go
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with the thing work the the inflation
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indexation because he can do that by
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himself without Nancy Pelosi state
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permission hey Grover I Steve Moore here
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and a great to see you I think look you
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sound very confident that the president
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has the unilateral authority to do this
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and that he has the legal that it that
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seems to be an open question but I
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wanted to get your reaction to you know
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you because you seem like it's an open
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and shut deal that he can do this I know
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the Democrats would probably you know
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challenge that so that number one number
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two what I like about that idea of
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indexing the capital gains tax and tell
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me if I'm wrong about this is you get a
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kind of unlocking effect now people
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could actually sell their stocks and
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move into new companies and new
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investment opportunities what is your
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reaction to that and by the way before
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you get there you say could he do it
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don't forget
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right the payroll tax was last cut into
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the Obama administration well 2011 and
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2012 24.2% reducing taxes by more than a
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hundred billion dollars every year each
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year it was enacted to encourage more
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consumer spending during the most
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request whether the president can do
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this without congressional approval
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that's the issue at the table let's take
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that in the order in which you ask them
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Steve one can the president do it there
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was a debate on this in 1992 and some
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serious lawyers said absolutely like
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Chuck Cooper others said we're not so
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sure but since then there was a Supreme
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Court decision in 2002 which answered
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the only question before is cost an
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unambiguous term that an agency cannot
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adjust and they said it can be you know
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historic cost would you pay for it real
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cost cost plus inflation it can be
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replacement cost there are many
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different conditions of cost and an
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agency like the IRS can decide which one
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to use so the Supreme Court came in and
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smacked away hard any debate some people
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think that the courts of the more
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conservative Court might want to reduce
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the the ability of agencies to make
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those decisions well a month ago we just
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had a decision that said nope we're not
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doing that so two Supreme Court
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decisions come in that say agencies have
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this authority they have this and cost
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cost specifically is not an unambiguous
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term that's why we can now say with such
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clarity that they'll politically whine
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about it but not legally have any
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success as to the question of the
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benefits the big benefit right away is
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that one CEO fortune 500 CEO told me
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there's seven trillion dollars of sticky
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capital which is land buildings other
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companies that corporations alone never
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mind individuals on homes homes and
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stocks but corporations on seven
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trillion dollars sticky capital much of
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which would be sold in fact almost all
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of which would be sold if when you're
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looking at things that are 5 10 20 50
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years old that would raise a lot of
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revenue in a short period of time and
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take trillions of dollars and redirect
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it to higher and better use its
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deregulation for past purchases of
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assets
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and it raises the value of all assets in
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the United States now going forward the
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one company that called me about this
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earliest as Americans for Tax Reform the
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group I didn't start about two years ago
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started talking to everybody in the
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White House good news is everybody on
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the White House is for it and
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understands that that's not a bad place
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to start
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beginning with the president with
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Sotheby's the guys because they know
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people will empty their closets and
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their attics of all of this you know
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baseball cards and artwork and so on
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that they've held on to over is even
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Steven minuchin in favor of this because
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I've heard at the Treasury there's some
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doubts about this there are always
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munchkins in the Treasury who say I
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don't know because it would might be
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work for them
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Steve minuchin has made it very clear he
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told the Wall Street Journal he knew he
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had the authority he said I'd like
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Congress to do it but I may have to do
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it myself
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and he has told people that he knows he
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does have the authority and it's and
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it's again it's it's clear in legal
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terms did you say there's always I'm
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sorry I punched khun's from The Wizard
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of Oz good on this the munchkins are bad
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on it what's your stance on the economy
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right now do you see a recession on the
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horizon all of this conversation has got
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me a little baffled because I thought
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things were going really well okay
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things are going much better than they
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were we were growing at 3% it's now
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moved towards more like 2% that's not a
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recession recessions is less than zero
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okay it is slow growth slower growth
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than the economy deserves there's
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obviously a lot of concern about the
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trade war with China and with tariffs
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tariffs are attacks on the American
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consumer and they hurt the economy and
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they tell every producer well you don't
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know whether to invest today or not
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because you don't know what prices will
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be and you don't know what's happening
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because of all the uncertainty that's
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what's spooking business investment as
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soon as that gets saddled we come to
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some agreement with China and hopefully
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with the Europeans that I think you'll
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see the economy take off because the
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fundamentals are quite strong but why
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not take advantage of the left claiming
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that the economy's slowing to
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by the card of indexing capital gains so
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we no longer tax inflation I say let's
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take those marbles off the table and
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thank the Democrats for the hysterics
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about how well the economy is doing good
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strategy Grover it's Veronica from Wall
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Street Journal
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you know if you do these moves now
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though does this leave you with a lack
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of firepower when things are actually
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really bad you need them well you can
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always do more tax cuts in the future
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you could always work with the Fed to do
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a better job I would start now because
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it takes a while for people to sell a
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fifty million dollar building in Chicago
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that doesn't happen in in in two months
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but I think you'll see people move very
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quickly to sell older assets and move
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them to higher and better use so I would
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do this now and going forward the next
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time there's a tax cut we need to make
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sure that this change becomes permanent
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and in law not just regulatory because
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what will speed up all of this action
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yes the Democrats will announce when I'm
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president I'll take it all away
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so everyone planning on selling the next
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30 years sells in the next year
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Corbridge great to have you on the show
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thanks so much for your insights always
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pleasure grover norquist there
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