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He's here as you can see -- -- is that.
Managing partner of -- capital and maybe the only man in the world.
Who understands really had to fix our economic -- but from we have Levy the White House hasn't -- -- -- -- new book by the way the alternative -- which is going to be published on what -- -- two available for -- now in the middle -- -- yes Amazon to Barnes & -- the alternative answer -- excellent -- get -- -- so this was the president's alternative -- to.
Not to Republican budget proposals of what what do you what do you make of it numbers wise do the numbers.
-- -- You know I think this is a not a reasonable start to hit a real negotiation and -- genuinely hope I didn't really understand what Mitch McConnell was saying -- Bluntly yeah -- you know it seems to be an effort to kind of detract away from the there's substance of this thing.
What the government there's something really important here that is legitimate -- -- -- the Democrats and the president for the first time in against the wishes of the extreme wings of his party.
All he's putting some entitlement reform on the table this is a you know that really should be the headline I mean it's great to get into weeds and I'm happy to do so -- That's a significant move in this -- did not implement that as good clearly did very much.
And -- committee.
Many on the left that he would even think of touching Social Security -- exactly so into it there are a lot of centrist Democrats who were actually very happy about this you know -- -- they understand it's gonna cost of friction on the far left.
Yeah I don't really think that it how I pray frankly.
That there is some opportunity here to actually get a meaningful dialogue going around this because -- changes they're not huge but the idea that you're willing to engage in -- discussion this is a negotiating point he's starting somewhere he's put something on the table it hasn't been put on the table before.
This change CPI that we're just discussing sounds very technical.
I think it is and it's actually a good reason that he can be the vehicle for some change because no one quite understand it so -- you know it's not gonna make headlines -- -- -- -- really gets it.
But it it but he does have a meaningful impact over time and end any more and more of an impact over time and it compounds what -- the thing is.
I was looking -- today for instance was saying that somebody who at that may be 65 today by the time that 80859095.
Than what they would get you're in the Social Security.
Was reducing from -- when they're a deeper -- a thousand I think it was like 890 dollars something like that.
Up to 16100 -- you know less than they would be getting -- -- don't seem like huge amounts but I guess.
Collectively -- and -- still quite a long.
That's the real point is collectively it really does matter a lot and it's it's a little bit like interest on the savings account you know if you -- if you're saving -- 3% or saving -- 4%.
In one given year doesn't generally matter a lot of that over the course of time because of the power compound it.
It adds up and -- -- you multiply that across the US population becomes a huge huge difference and there's good theoretical justification -- as well aside from the the politics of the thing about what went back to add to it to -- a broken bone would you theoretical justification for well they did it take to do good.
What is all this crazy talk mean what -- change CPI really refer to it's it's a really interesting concept of the point is that.
The way that CPI is calculated typically -- you take the cost of a particular object.
-- call are for example and you see how much the price of that given -- goes up over time.
Well the reality is that's one way of measuring the cost of living but guess what.
Cheaper cars and gotten radically better it's -- -- much easier to shift the same quality -- our cost much less.
The top of the -- in parts cost much more but the newer cheaper cars that were as good as the original model that you were tracking in the first version of CPI.
Means that you can actually switch products.
Get the same quality for my -- so instead of tracking the cost of a given product.
Trying to cost of what it takes them to buy something that will give you the same level of service or or product quality.
And so that's the idea behind something called the changes CPI okay -- -- that's seven.
And Social Security in the -- CPI's won't be as what some on the left do not like about they take it I'll walk pretty much every Republican is no don't like about this.
Is tax reform now the president to be clear is talking about it.
And deduction possibilities he's not talking to back raising anybody's base.
Tax -- correct he's talking about the big idea here which again is -- Kind of in the weeds which makes it convenient political device you used -- The deductions.
For the highest earners at 28% he may be paying -- at 40% but you only deduct 28% of that like your your deductions are limited.
So it's a way of effectively increasing taxes on the wealthy without changing the rate --
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