tv The Next Revolution With Steve Hilton FOX News August 20, 2017 6:00pm-7:00pm PDT
>> we'll meet the man who said elite are protecting their privileges while keeping working americans down, in "swamp watch" attack breaks for the rich, wait until you see how wealthiest cut their tax bill while you pay full whack. welcome to next revolution, i am steve hilton, this is home of populist posivm simp. we're not interested in people leak me who are doing well. those living in wealthiest neighborhoods who biggest worries are i don't know whether their sushi order will be delivered on time, they can take care of themselves.
we are worried about those who have been left behind, people whose incomes are lower today than nearly 20 years ago, after 8 years of bush and 8 years of obama, the people whose jobs have gone away. who see the social fabric around them torn apart, and lost faith in tigs and government -- politics and government, we're focus on them, in a positive way, avoiding bickering you get. we're trying to be intelligence. and thoughtful. i am glad you are with us. people feel scared to feel what they are really thinking, there are some views that no one some listen. to like nazi marchs in charlottesville, it is vital, as i said last week, for populist
in particular to condemn the hateful fringe on the far right. and it is obvious that what president said this week has intrenched or inflamed division. you can see how divided we are, looking at this poll 46% of americans blame far right for charlottesville violence, frein% blam49%blame both sides or the r left, let's get populism back on track by being positive. let's work for 5 populist econo. american opportunity for all not just the elite. and populist governments, where we drain the swamp of corruption and cronyism and put power in the hands of people, mr. president your supporters just want you to succeed and make america great again. way to do that is stick to your populist agenda, bring peoe together. and above all to be positive.
that is next revolution i'd like to see. with me now to discuss all this, rasmussen report political analyst amy holmes, also with us california congressman brad sherman and investigative reporter for young turks, nikkik khan. nikki starting with you if i may. the thing that i am interested is your view is whether as a bernie sanders supporters, which you were in eelection, i do see any hope for that populist agenda to help working people, being delivered. >> i hope so there are a let of factions and wars going, on both sides, back it up, the events in past couple of weeks, has horrible as they are, we've have
seen this in history. a couple years ago, a columnist warned with the inequa inequali, great as it right now, for bernie sanders, who is most popular politician in country right now, this not about bernie sanders but the politics he brought forward, and the next generation when overwhelmingly sides with that type of populism, as you said, you need to have solutions, from our side, i am hoping that democrats come together and we have solutions. if we're not delivering a positive populism, there will be a negative populism. steve: that is who -- what we're all about, do you think that
there is a po possibility for pm to be positive. >> certainly. yoyou politicians they work for us, we don't work for them, it seems that a lot of politics have forgotten this and forgotten to focus on middle class americans. who would have guessed a independent self described socialist from vermont would be giving hillary clinton a run for the money. steve: you can plant the same on other side. >> absolutely, another thing overlooked or not understood about president trump, early in republican primary, he was going you know cleaning up, he was getting republican voters who were more likely to support raising a minimum ways, raising taxes to wealth who were supportive of unions, a lot of republicans said, i didn't even know we had them in the party. those are people that donald
trump of the reaching, he deputt get which ofs until ted cruz and marco rubio and the conservatives dropped out of the race. if poll tigs couldtation -- politics could focus on this group of people. there is a caucus in the group trying put together a coalition of moderate democrats and republicans to come up with solutions. steve: congressman, there has been a lot of focus on split within the republicans and whether the president is even a republican ewe had a lot of conversation about, that there is a similar fit went democratic party, and pol lift and what is described as establishment. >> both parties are coalition, republicans are having a tough time now because the mitt romney wing of the party look at trump, they are aghas aat aghast at why
see, they don't want to give up the voters. we have been aggressive on the trade issue, if we had balanced trade with the world there would be such a an incredible labor shortage, employers would buy all 60 minutes for advertisement to recruit -- >> that is where bernie sanders and donald trump agreed was on trade issues. >> defeating tpp was just the beginning. steve: only issue. >> you need to do is require china to engagen balanced trade with the united states, they have managed traden their side, we have wall street openness on the other. even when we are able to export something to china it is at cost of -- they demand we transfer uriney itransfer
our inst intellectual property o them. steve: your view on the plan that chuck schumer the other week the part about competition about breaking up companies and having a tougher antitrust policy as part of a pollist message. >> we need to enforc our antitrust laws. that starts with banks and big financial institutions. steve: does it stop there? >> i would have to look at them, i doubt that democratic senate leader has put together anything all that radical. to big to fail is too big to exist. steve: i agree with that, more time to get to in of those later, before we go to break, a fox news alert.
we're following two breaking news stories, first, 1 search ad rescue in south china sea uss john mccain collided with a merchant ship in singapore. no word of injuries. we'll keep you posted. >> also a live look at laguna beach, california. down the road from here, site of a far right wing rally, america first and count pro test ors, police are out in force, making sure that both sides stay peaceful in no violence breaking out this rally just getting underway, we're keeping an eye on it. if there is news to report, we'll bring it to you. steve: coming up "swamp watch" investigates why wealthiest americans seem to get the biggest tax break, and what is happening to ame dream?
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why american upper middle class is leaving everyone el in the dust. and richard and i once worked together in uk government, not as closely as this. this another story. richard, you can tell you are an american now by the length of your book title, explain, what is behinds argument. >> the british thing is relevant. one thing that i discovered to my dismay, that class system in u.s. the top is justs strong in got strong than one wees scape from in u.s. i grew up hating that obsession with class in britain. what fork you using and how you talk. we share that. one thing we share in our policies, that has been disconcerting this discover top 20%, person -- persone -- persot
waiting themselves, i think shocks and disturbing. steve: a lot of people, we have this conversation talk about the 1%, that is used all of the time, you say it is broader than that? >> i think more like 20. not just misleading but unbullpen full--unhelpful. the we're the 99% is most unhelpful political slogan in history. that puts line in wrong place, you can argue about the line, if you are in six-figure income, they have average income 200,000 a year. >> top 20%. >> yes, 4 times median income, and look at economic trend that top 20% increased their income by 4 trillion since 1980.
and bottom 80 by 3 trillion. much less market income gains than top 20. steve: you are not just describes it, you say that this is not an accident, that the people at top the elite as we might call them, are actively intrenching their privilege and keeping or people out. >> it is some why they are doing it hoarding the american dream, and you said at top of show, good luck to them, people who are doing well. i don't think it is just luck, i think that way that housing market operates, and education market operates, and tax system operates. all those are rigged in our behalf. not just -- steve: housing then. and specifically how does this work itself in area of houng. >> land turns out to be importt rt of any class system. one reason they say landed
gentry where we come from. and in past, u.s. has been a big country in sense a lot of land. getting more cramped, particularly in metro areas, where there are a lot of opportunities, land is expensive, it gets joaned -- zoned to benefit us. and then comes uncle sam for giving us a tax break for doing it and we have great schools. i don't know that anyone has sat down and 28e created this systen a evil genius kind of way. if you did, it bow would look le that. regulation, 19 out of 20 people live in a city with regulations. steve: housing. >> on housing. we have exclusary zoning. really it is about protecting value of our homes. which are also tax subsidized.
at that point you are rigging housing market combined with tax system in our favor, so it is not just luck. we have a responsible for some of these. steve: i appreciate that and i think making this more of a political argument, not just talking about financial income aspect, this is important, some structural reasons, we'll get to some of this later on with the panel, as i said we like to be positive. one of the aspects of opportunity that richard talks about is access to college, we saw a fantastic program in southern california, working on that issue. anita vogel has the story. >> what classes have you signed up for. >> i got chemistry. reporter: conversations about college, kia and her mother margarita were not sure they would have, thanks to a program called power for youth, kids are finding a way to change their lives. >> we work with the kids that are most likely to experience
academic failure, our goal is to help kids to do better in school, however it is not homework andtud tutoring as it s mentorg. reporter: they join as early as middle school, they work one-on-one each week, goals range from staying out of trouble to improving their grades, diana lopez's parents speak mostly spanish, they spend a lot of time caring for her sifter with down syndrome, they were not able to help her with her algebra, that is where her mentor came in. >> we would look at youtube videos, they all taught me a different way, the way my mentor taught me was easier. reporter: pour for youth, has helped more than 450 kids, since
then more than half of the at risk students have gone on to college. >> i fell i would be in jail, or just do nothing with high life. reporter: 19-year-old luis robles admits he was in the road to nowhere after his father got deported, he spent countless hours at detention at school, until his mentor showed him another way forward, now he is in college, and wants to pursue film and social work. reporter: what kind of an impact has this program made on you and your daughter's last. >> she got into college. reporter: single mom margarita davis could not be more proud of her daughter key awh kia, who iw studying to be a nurse. she credits her mentor. >> being in the program pushed me that i could do more than i thought i could do, and i can go as far as i want. reporter: pour for youth is
first of its kind mentoring program, 94 cities i city -- ots are taking notice of the success, copying the model. steve: thank you aneat acoming up, "swamp watch" investigates why richest americans get the biggest tax breaks. and richard and i debate dream hoarders with our panel. keeping me from the things i love to do. talk to your doctor, and call 844-214-2424. it's ok that everybody ignoit's fine.n i drive. because i get a safe driving bonus check every six months i'm accident free. because i don't use my cellphone when i'm driving. even though my family does, and leaves me all alone. here's something else... i don't share it with mom. i don't. right, mom? i have a brand new putter you don't even know about!
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steve: all right so we're back with richard and the panel. i wish you could have heard our conversation in the break, we'll try to recreate it. >> what happens in the break stays in the break. steve: i i agree. >> tax policy, only fight is between the platinum 1% and civillesilver 19%, 80% of incoms are paid by top 20%. we talk about tax reform that is usually used to lower top rate and shift income from the person who makes $100,000 to person who makes 10 million, but trade is a different issue. that is where the upper middle class does benefit. because when you can get an nba who special -- mba who
specialized in offshoring and one in marketing and one that lobby for trade policies, y can fire a whole factory, if the lower middle class can't get that $30 an hour manufacturing job that allows their kids to compete then we have $10 manufacturing jobs and the separation that worries me. i don't know if we have level of stratification in your book, only 40% of kids in upper middle class are able to stay, according to studies that i have seep, but whatever stratification we have is not justified. >> on tax i agree with you, i think that most ferocious class war in america is top 20%.
i agree with you. >> make 100 grand. >> a third of that, one of demonstrations. >> all relative, i actually open a book with story of president obama trying to save the savings plan. that goes to top 20. it was outrage. you have to kill it to be first president in living memory into to ask your own party. why because upper middle class, including top% this a sense of indict ilin-- entitlement. we can't build enough of an agenda just on shoulders of top 1%, we do have to ask more of the others. i agree with trade. we're insulated for too long. in long run trade it good.
it is never people who are at top of distribution, i think it has been a wake-up call. >> chinese government has done a great job for its middle class, they have managed trade on their side. >> hopefully we will not become a communist country. >> i really say. >> we need i appreciate that you brought up environntal implement you have to be prett rich to be an environmentalist, a tesla is 100 grand to buy that car expup. if yoand up.if. you have environmentally grocery that can take up your hole whole paycheck. probe said his environmental plan would necessarily make electric bills skyrocket. >> there is a lot of hypocrisy. >> not just hypocrisy but in democratic party, actually run
into opposition from unions. there is a little bit of a transition in terms of fracking, for example. >> i don't talk about environmental things, i want to get back to the fact that so many of these structures, housing, the school system, parenting and the way our kids are raised, all of these structural things prevent the social mobility we want to see. >> absolutely paradigm and activists and i'm around organizers all day long. the pain that you hear from a lot of these folks is that they don't have options. they're not lobbying. even then there very disconnected from union leaders. those inside rooms, as you know, the conversations that are being had is completely different in terms of education. new york state where i live,
the entire divide is over charter schools and public schools. public schools are receiving the funding. >> the trouble with having something this interesting. [inaudible] >> i'm sorry, we are out of time. [laughter] >> we will have you back. there's so many details that are so interesting. set a. thank you so much. our country is still in massive debt. why are the richest americans still getting giant tax cuts. a lawyer is here to defend it. don't miss that. ♪
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it is having to port but again five sailors are injured in ten are missing. a certain effort operation is underway. we will keep you posted. now, on to swamp watch. you will hear a lot over the next few months about tax reform. if you listen to the arguments, remember our tax code is as much a part of the swamp as any other aspect of government. it benefits the elite at the expense of working americans. tax breaks for the rich are tonight's swamp watch. they can subtract the income from the property taxes they pay from their federal tax income. it's one of the biggest tax base and saves around a hundred billion dollars a year. what's not to like. surely we should be in favor of anything that saves tax
payers money. while yes, until you find out which taxpayers save money from this swampy scheme. in 2014, nearly 90% of the state and local tax deduction went to taxpayers earning over $100,000. year. how much of it benefited working americans? just 1% went to those earning less than 50000. year. the median income is around $50000 but that means half of all american households earn less than that. the 99% of the state and local tax production is going to the top half of earners. goes to just six states out of 50. guess where they are. 20% goes to california and then look where it goes within those states. here are the ten counties that benefit the most from the state and local tax deduction. number one, new york county new york. also known as manhattan, also including wall street. number two, california also
known as the place where san francisco typhoons on their second or third home. third places california san mateo county. that happens to be where i live and i can confirm that my neighbors in silicon valley do not need a tax break from the federal government, especially when so many american households are struggling. president reagan tried to get rid of this tax break for the rich in 1986 but bked off. now the trump tax reform includes abolishing this in the swamp has risen up in protest. in the last few week we see the national association of counties hiring expensive lobbyists to protect the interest of the wealthy. they are joined by other establishment groups like the national governance
association, the league of cities, the state legislatures in the u.s. conference of men. you know what the state and local deduction really is? it's a subsidy from the federal government to wealthy elite who shoveled donations into the pockets of high spending democrats from places like new york and california but want to be protected from the economic consequences of their political posturing. okay. here's another special favor our tax system gives the rich. you may have heard of the carrots interest loophole. the idea is to reward risk-taking entrepreneurs that put their own money into investment funds. in exchange the income is treated as a capital gain and taxed at a lower rate. that encourages risk-taking and entrepreneur investments. that is clean capitalism and i'm all for it, but this tax break has been abused by the wall street elite for their own personal greed.
managers of private or equity firms and hedge funds are putting their own money at risk. they are managing other people's money. that's their job they get commission out of it and the commission is her income. the loophole lets them get away without paying tax on it like everyone else. this lines the pockets of the ultrarich. in 2015, steven schwartzman, were 12 billion made over $8 billion from this game. out of the wall street elite, they cling to their tax breaks. he made almost $10 million in political contributions and spent $3.5 million on lobbying last year alone. the money spent to lobby the federal government goes a long way. a study conducted by university of kansas research found that corporations hiring lobbyists may the2000 rate of return on their investment.
if only they could deliver that kind of return to their clients. these swampy lobbyists make the most of the revolving door between congress and commercial interests. they proudly advertise the fact that two thirds of their team went through the revolving door between congress and outside lobbying. capital tax partners made over a hundred million dollars and actually boasts that 11 of their 12 partners have capitol hill experience. of course they do. that's how the swamp works. in the election, donald trump promised to get rid of the loophole. >> we will eliminate the carrot interest adduction and other special interest loopholes that have been so good for wall street investors and for people like me, but unfair to american workers. >> we stand up to the lobbying
from inside or outside the white house. that will be a key test for his populism. while he's at it he may want to look at more of the swampy favors for the rich that are lurking in our tax code. big businesses can write off the cost of their corporate jet. they spent over $2.5 million lobbying the government last year. it's not just the skies better swampy. believe it or not, the rich get to subtract the cost of the luxury private yacht from their taxable inc. come through the mortgage interest. that's supposed to help the middle class afford our homes but it covers second homes and votes as long as they have sleeping, cooking and toilet facilities. so billionaire can get tax relief on a luxury yacht but
that little stiff you take fishing, forget about it. next time you hear some slick politician telling you how they love to get your taxes, tell them simply limiting mortgage interest tax deduction to primary homes would raise around $10 billion. the sle ofhe corruption is truly shocking. tw weeks ago we looked at big banks that agreed to multibillion-dollar settlements to avoid prosecution for the crime. now wait for this. guilty companies can deduct some of the cost of those settlements from their taxes. pc headlines about oldman sachs anna fine, they're using it to pay less tax. as much as a billion dollars less. according to newsweek calculation, around $15 billion of taxes are linked but were avoided this way. they crash the economy. they will work their swampy legal contacts and then used the fine to cut their tax bill.
this is the ultimate in crony capitalism and it's killing support for the free enterprise system. if draining the swamp means anything, it surely means killing off these indefensible tax breaks for the rich. joining me now, new york state senator todd who represents the nine district on that list. the top ten beneficiaries of the state and local tax deductions but i just called that tax deduction indefensible, but you are here to defend it. tell us why. >> thank you steve. first, i just want to state that my thoughts and prayers go out to the missing sailors in the pacific right now. the main argument that i want to make with respect to the tax issue is that this affects a lot of middle-class people as well. the truth is, property tax is hammering the middle-class all over. i represent 15000 public school teachers in my senate
district. i have a lot of police officers and firefighters and regular middle-class people who a really high property taxes. the median property tax payment in my district is $11000. of course they are wealthy people in my district, but a big middle-class segment was really hurt by this. >> sorry to interrupt, but what's your definition of middle-class? we've taken a look at the median income in your district. it'say abo the national average. >> the cost of living. >> are you saying someone earning over 100 30,000 dollars. year. >> i think if you have a joint household where you have two hard-working people who don't have white-collar jobs like a teacher and a police officer, they are going to end up earning more than 100 30,000. they will not be rich at all
in the cost of living is so high on long island that they will probably just be figuring out how to get the kids to college and how to be able to afford retirement. when you would take away that deduction from them, their taxes would go up by thousands of dollars. >> who's paying for that deduction? it's the states that don't have an economy income tax. you're asking for the subsidy from other people who earn even less. i agree with you on lowering taxes but why should other people pay for the earn less than people in your district. >> i was a corruption prosecutor for the department of justice before i do this and i certainly believe putting attention on how things will work behind the scenes is critically important, but the other way to look at this is that the states that would be hurt by this are states that didn't vote for the president, and since this has come out. >> exactly. the reason why her taxes so
high in that place. that's why. you get all these protest because basically places that benefit from this are democrat-controlled areas with high spending that they been protected from the consequences of by this deduction. >> we have instituted attacks cap. were trying hard to limit property taxes but it's my job every day to make sure that the hard-working people i represent are able to keep a certain amount of the hard-working money they earned so they can follow their dreams, and having this deduction go away would be devastating to them. they want to see their money go further and the government invest in their communities and have their tax dollars. >> i hear all that, but why don't you tell your democratic colleagues to spend less cement taxes wouldn't be so high in the first place. anyway, thank you senator. the panel has been listening and bill be trying to get in
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let's get our panel. the congressman was dying to get in. >> you said the effective eliminating this state and local tax deduction is going to mean less spending. that means we won't have the free colleges that we have here in california. it is a reagan ryan attempt to squeeze local government and make sure it can't help the homeless, make sure can't provide college education or good k-12 education. you are assuming median income is it the same in iowa and york city. hundred thousand dollars is a very different thing. finally, you point out that 90% of the benefit goes to those who make over 100,000. those who make over 100,000 pay roughly 90% of the income tax. it is a proportional, not a disproportional. >> i'll take the point of cost of living. good point but on the first one, i do want to say that surely we want accountability for the spending.
the people who spend the money should be accountable. >> most of what the taxpayer pays, they don't get back in the deduction. they fight hard. [inaudible] >> i'm not going to give you the greed is good speech. >> that's a relief. >> but the point that i care about which is that i don't think the federal government needs to raise more taxes, i think they need to cut more spendings and i thi a lot of americans agree with at. theres so much waste and fraud projects that only be funded by federal dollars. we could go through that and fix the problems with the tax code. also, you did hit on something i agree with in terms of the fairness of the tax code. when you see people who get to carry interest deduction, they get to use their income as investment and they have a different tax applied to them
than everyone else, that only creates more resentment and more of the negative populism. my last point is there's a difference between tax breaks and tax cuts versus tax reform. i think we can get a bipartisan coalition on tax reform. >> one of the things bernie sanders, he didn't call it tax reform but he talks about aspects of our economy where it's not fair and you could have a long conversation about that. to his point, if we are squeezing the middle-class so much, we are. you're talking about spending too much money. if you look at the social programs that conservatives complain about all day long, when you squeeze the middle-class, that forces people to go on those social programs. if you are working a hard job that has a lot of working-class voters, policeman and school teachers,
very large teacher population in long island. if those people can afford the basic necessities in life and they're forced to go on social programs, that's the worst of both worlds. >> i totally agree with you there. we've got to leave it there for the moment. you have another chance in the second to get some final thoughts. don't go away y step counts. a bayer aspirin regimen is one of those steps in helping prevent another stroke. be sure to talk to your doctor before you begin an aspirin regimen.
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the new 360 smart bed is part of our biggest sale of the year where all beds are on sale. and right now save 50% on the labor day limited edition bed. in the moment, final thoughts from our panel. but a quick note, next sunday we will bring a drain the swamp special including an interview with a lobbyist turned anticorruption activists. >> he has been lobbying for unions for 35 years. this is why we have the rise of populism.
>> right to work laws nationwide. trump has the authority to impose tariffs on chinese goods. that would force them into a balance trading relationship with the united states and create a labor shortage. >> you can get bipartisan support. >> that's what were trying to do on this show. join us next sunday for the next revolution >> i'm kelly wright in new york. the uss john mccain, a navy guided missile destroyer involved in the collision a short time ago. the u.s. navy says ten sailors are missing and five others are injured. there may the ship collided with a merchant vessel east of singapore. the ship collided with have been identified as the merchant vessel that's an oil taker selling under the liberian flag.