tv WSJ at Large With Gerry Baker FOX Business June 6, 2021 9:30am-10:00am EDT
molly hemingway as well as missouri congressman jason smith and we will talk about the tax-and-spend program he is on the budget committee plus start smart on fox business 6 - 9:00 a.m. eastern with "mornings with maria" i hope you spend your day with us every weekday on fox business. that will do it for us for t weekend, thank you for joining me i will see you next time. ♪. >> i am james freeman and for james baker, joe biden's first budget makes this offer to the american people higher taxes on personal business income another $17 trillion in government debt and also slow economic growth. this underwhelming proposal has more than a few taxpayers wondering what's in it for them in the country.
typically when a president wants to rip federal spending and taxes he present the idea as joe biden's old boss barack obama did as necessary to fund programs leading to broad prosperity and robust economic growth but the official biden forecast included in the president's budget makes no such promise after couple years of the federal spending splurge the president's plan says for the rest of the decade the economy will expand by less than 2% per year. slower than the pre-covid trump economy, what is in the plan for people working outside of government, more of the workers than expected will eventually face a tax increase you may recall signature promise that mr. biden has repeated again and again, since he was a candidate for president. >> iq. on the press biden's gonna raise your taxes anybody making less than $400,000 will not pay a single penny and taxes.
>> the budgets as a trump tax cuts for low and middle income earners will be allowed to expire in 2025. the budget forecast, higher taxes on not just people making $400,000 but people making $40000, mr. biden's plan doesn't forecast a better economy than the one that existed pre-covid, speaking of the trump economy it seems former president obama wants to claim credit suggesting that the prosperity in 2017 - 2019 was a result of his policies. >> joe biden or person running hillary clinton had immediately succeeded me and the economy suddenly 3% unemployment. i think we would have consolidated the sense that these policies obama put in place work. >> what happened voters chose a
completely different set of policies when they voted for donald trump in 2016 the result was rising wages for workers in a series of record numbers for job openings, now the question whether biden policies could work joining us to help answer that question whiteouts chief economist on president trump joe the cornea, former treasury secretary under president obama steve radner, thank you for joining us. steve we give you the first crack at this it is kind of odd to see that there is not at least an optimistic case from the president, he is saying i want to spend a lot of money and raise taxes but he is not promising great economic performance later, are you puzzled if not by the economics by the politics or maybe both. >> in a matter of history i began my career recovering and
forecast like these and for a long period of time presented to both parties wildly optimistic forecast and criticized for doing that, what you see the white house doing is time to not get into that trap and allowing realistic outcome. as you know gdp is ultimately determined by two things forces and how productive they are. we have had slow growth from the labor enforcement, a lot of people leaving the labor force, we have an immigration policy for potential labor force, as you look ahead with the labor's force in a productivity that is not been great for a while it is hard to respond before that in the hope is that the biden policy will produce more than that i believe that sometimes they will but i don't think the forecast is the most important is whether you like the policy or not.
james: work and hope for the best but joe will bring in in a second on this point the white house maybe give them credit for being realistic is in forecasting huge benefit, then what is the case for all the spending were talking about world war ii levels of spending taken is the debt of 117% of gdp a really massive expansion up to each reagan dollars in annual budget by the tenure. what is the case for the spending splurge. >> let me make clear that i don't love every part of the proposal i do think it is huge into large gdp and the reason for the spending and the
president with the pandemic relief in a further freefall and as we've seen in recent economic numbers believe we will continue to seek the recovery of this economy has been extraordinary and i or anybody else thought, and that would have to be on both presidents for acting quickly, very quickly. the second part is what people agree they need to invest more on this economy to get the activity that i was talking about. ways to do with them construction and lot about the also r&d in many other ways that we need to invest in this economy, we can debate specific to the biden proposal, although as i said i do think it's too much money into quickly without efficient definition, that i would absolutely agree with. james: as you look at the spending plan, what is the cause for hoping, is there any that we will get the productivity gain
that steve is talking about. >> the productivity is very central to long-term living standards and other president trump productivity delta on the growth rate in that largely is a function of capital deepening capital deepening is a function of tax policy and regulatory policy if you incentivize business through capital than longer-term wages were wise very rapidly under president trump and not openly long-term will increase productivity. however, if you will lift corporate tax rate and you're going to put the capital gains rate above the marginal income tax rate so it's never been done before, that's been done in the last 40 years are you taking capital gains through an all-time record high that is not good for capital deepening innovation productivity to work are living standards and that
does trouble me. james: the question of the trump plan which i think worked pretty well you lower corporate income taxes and we see this around the world companies have more incentive to buy tools, workers use the tools and they get were productive and that allows them to make more money even your own boss barack obama in the 2015 report of the president endorsed this view, is biden getting away from that view, do you think he is playing with fire raising that corporate income tax rate from its current competitive level until level at 21%. >> a couple points the biggest problem on the corporate tax side is a global race to the bottom and they are raising them slightly cutting corporate taxes but i would certainly agree that we need to be competitive with
the rest of the world in terms of public taxes. a priority of the biden administration and janet yellen is taking the lead to get a global agreement on certain corporate taxes and i think that would be the norm as part of the country. corporate taxes is a federal revenue for very long time, corporations have spent the last fair share of what it cost to the government in the beginning of this is corporate companies should pay more but we need to be competitive globally. james: i would say competitive tax rates are a race to the top. please stay with us we were to get your take on issue a lot of americans are thinking about how concerned should we be with rising inflation, the job graders network is suing major league baseball. they say bring the all-star game back to atlanta or pay $100 million to the city small businesses. i'm speaking with the man behind the lawsuit later in the show. and what does dr. fauci no about
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james: were speaking with chief economist under president trump joe look worn yet and under president obama steve rattner, gentlemen we've been talking about the spending in the biden plan, now i want to focus, official washington tells us not to worry about is temporary it's rising inflation, consumer prices a lot of money creation of the federal reserve during the year of the covid emergency obviously government spending at historic levels, joe do you think this is a concern a long-term problem are we headed
towards the 1970s for by the fed explanation that this is a temporary blip and stable prices will return soon. >> i believe stable prices will return soon the fed to get goods and services has not been able to do it this is been a problem for central banks, unfortunately what the fed has done it's got inflation and asset prices both real assets and financials in my fear that the impact on wealth distribution will continue to worsen q-tip in the inflation this is post pandemic reopening it eventually will pass and be a big inflation problem coming. james: when you talk about the concern people with financial assets to well under inflation in average folks that may not own a lot of assets who see rising prices tend not to do as well. >> that is true but i'm thinking of the extraordinary monetary policy has lifted equity prices and housing prices that's when
you see expectations of higher prices persist that's when you see significant price gains general goods and service prices i don't see lifting off essentially the fed getting inflation exactly where it doesn't want and as long as it pursues the externally policy's them will continue to get inflation where doesn't want. james: steve what is your take should we be worried about inflation. >> i am worried about inflation it is interesting and maybe ironic that joe and i may be on different sites that you would expect us to be on for the point where worried about inflation is not justified or even the fed but i do think financial asset prices, we have an economy that is faster than any of us thought this would roughly $30 of dry powder which is half of the money that consumers beyond
their normal last year end a trillion dollars of money they didn't spend last year lockdown all coming out of the woodwork and with this economy in the biden stimulus is barely begun devon effective stimulus checks have gone out and a lot of the rest has not happened into more packages i have not passed i'm very worried about fundamental inflation. james: we have to leave it there but we appreciate your commas, thank you for joining us. coming up is a time to bring baseball back to atlanta major league baseball to pay those of the terms of the brand-new lawsuit ahead of the organization suing major league baseball that makes the case. dr. fauci under fire nude details from e-mails he sent last year regarding the wuhan lab in china, how much did he share with president trump. ♪
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james: if major league baseball does not bring the all-star game back to atlanta they are going to face a $100 million lawsuit, they're already facing this, the man behind the suit the head of the creator network alfredo ortiz, think for joining us. >> thank you for having me. a few months ago major league baseball did woke virtue signaling and after georgia passed the voting law which was opposed by the political left baseball made a show of
canceling the all-star game which is going to be atlanta moved to colorado and it's going to happen next month but your concern with the people left behind in atlanta who were counting on this big event, you are suing on behalf of various small business owners? >> that is right and when you think about that manfred moved the game in four days time after governor brian kemp the governor of georgia sign that into law. after atlanta had been preparing them for 21 months in denver has had it for two months. i have to say atlanta is ready and it will happily bring it back, was preparing for 21 months versus the state and city preparing for two months, the people left behind were many, many local and small business owners many of which were black and hispanic small business owners in the estimated impact of the move $100 million, these
are real dollars for real people i talked to so many of them and videographer for example one of the interviews he was telling me he was contracted to take the game, he had a 50000-dollar contract which is a quarter of his revenues for the year end that when in the air, so many other small business owners, restaurants, bars, uber drivers, taxi drivers, 8 - 10000 hotel beds that were reserved this is a true tragedy it was all founded on basically lies in mistruths. james: i'm wondering the goal obviously a $100 million suit but is there a goal beyond the dollar amount, messenger trying to send with the lawsuit. >> we are saying that you moved it to denver in four days and you can move it back with the same expediency that you moved it out.
the $100 million of the really fun for the local businesses and small businesses economically impacted. we manage alongside with the state but were not looking to profit off of this any way shape or form we suffered economically as well we basically rededicated and refocused all of our resources to do this because guess what nobody was doing anything about it and the truth is many local businesses in atlanta were hurt by this move, the estimated impact $100 million i emphasize because it's real money for real people. james: you're going to get your day in court you have a hearing scheduled this coming week in manhattan and it was filed in new york, this is a federal suit, you will get at least a hearing, do we know if you can compel major league baseball rob manfred to testify or to undergo a deposition. >> we certainly hope so from a
timeline standpoint we were very happy with the fact that we got a court hearing scheduled for june 10, we were excited about that that will be a big day and morgan asked manfred for what we need to ask him, he did try to duck service, i'll be honest with you but we were able to serve him, this will move forward into for some reason that we lose we will keep appealing and if we have to go to the supreme court. james: thank you for joining us, good luck with the case and let's hope that we learn something from this experience, thank you again. >> thank you. >> coming up to questions what dr. fauci knew about the origins of c with voltaren arthritis pain gel, my husband's got his moves back.
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jack: before the world suffer from covid-19 money from doctor anthony fauci u.s. government budget ended up at china's wuhan institute of virology which was engaged in the study and manipulation of deadly coronavirus, is there a connection between that research and the deadly pandemic which also began in the city of wuhan, we know from dr. fauci's e-mails obtained by media outlets using the freedom of information act despite his public comments in 2020 downplaying the possibility that covid-19 escape from a chinese lab he was told of disturbing evidence suggesting the virus might've been
man-made, the obvious question what exactly did the government disease doctor no and when did he know it and also did dr. fauci disclose to president donald trump everything that he knew about the possibility that a chinese lab partly funded by zone institute ip the source of the pit devon this is important because dr. fauci was given massive responsibility in leading american national response to covid, if he did not fully disclose all the information but the potential origin of the virus in his own potential role then president donald trump was denied relevant information that he needed to make it enormously consequential decisions like whether to accept dr. fauci's advice in favor of shutdowns. we know that lockdowns amounted to a national disaster the questionable public health benefits and amount of federal debt then american children will spend many of years trying to finance. prior to selling mr. trump on the radical therapy did dr. fauci disclose everything he
knew about covid-19, billions of people all over the world still deserve an explanation, dr. fauci needs to share everything about the u.s. taxpayer money that went into want in the global horror that came out of it. that is it for us, jerry will be back next week with in-depth interviews on the walljojojojojr joining us. >> "barron's roundtable" sponsored by invesco qqq ♪ ♪. jack: welcome to "barron's roundtable" where we get behind the headlines and prepare you for the week ahead. i'm jack otter. valuable investing advice from a market group and later if you invested in las vegas is a time to cash in or let it ride but we begin with what we think the three most important things investors ought to be thinking about right now. the main jobs report missed estimates for the unemployment rate in a