RUSH TRANSCRIPT ACUNA President ░░░░░░░░ is proposing to significantly ░░░░░░░░ the capital gains tax ░░░░░░░░ help pay for his ░░░░░░░░ 8 trillion dollar spending ░░░░░░░░ And joining us to ░░░░░░░░ is macro trends advisor ░░░░░░░░ founding partner and visiting ░░░░░░░░ fellow at the university ░░░░░░░░ San Diego school of ░░░░░░░░ Mitch Rochelle the co ░░░░░░░░ of a podcast Thank ░░░░░░░░ for being here today ░░░░░░░░ always run out of ░░░░░░░░ with you because I ░░░░░░░░ so many questions Let ░░░░░░░░ begin quickly with this ░░░░░░░░ gains tax proposal Could ░░░░░░░░ 39 6 to help ░░░░░░░░ for this 1 8 ░░░░░░░░ What do you see ░░░░░░░░ impact being in the ░░░░░░░░ term on that ROSCHELLE ░░░░░░░░ Alicia the thing to ░░░░░░░░ is capital gains historically ░░░░░░░░ been taxed different than ░░░░░░░░ income because the earnings ░░░░░░░░ the underlying investment have ░░░░░░░░ been subject to tax ░░░░░░░░ s say you own ░░░░░░░░ stock and owned it ░░░░░░░░ 10 years and have ░░░░░░░░ huge gain The earnings ░░░░░░░░ apple have already been ░░░░░░░░ and basically a double ░░░░░░░░ to have a high ░░░░░░░░ on capital gains That ░░░░░░░░ why capital is taxed ░░░░░░░░ than ordinary income or ░░░░░░░░ from salaries So the ░░░░░░░░ of bringing the capital ░░░░░░░░ right up to the ░░░░░░░░ level is sort of ░░░░░░░░ to the way we ░░░░░░░░ investment versus you know ░░░░░░░░ ACUNA So okay now ░░░░░░░░ s move to some ░░░░░░░░ news here because we ░░░░░░░░ get some encouraging news ░░░░░░░░ the gross domestic product ░░░░░░░░ coming out that shows ░░░░░░░░ 6 4 rise in ░░░░░░░░ first quarter here That ░░░░░░░░ some good news definitely ░░░░░░░░ we can look at ░░░░░░░░ what folks are spending ░░░░░░░░ on What people are ░░░░░░░░ and what we re ░░░░░░░░ and what we re ░░░░░░░░ here and the way ░░░░░░░░ consumption is happening what ░░░░░░░░ been driving this Is ░░░░░░░░ that people are spending ░░░░░░░░ they re going to ░░░░░░░░ and shopping hotels all ░░░░░░░░ those things that we ░░░░░░░░ t able to do ░░░░░░░░ last year That s ░░░░░░░░ news but is there ░░░░░░░░ caution in this good ░░░░░░░░ that you see is ░░░░░░░░ ROSCHELLE Yeah a couple ░░░░░░░░ things I think there ░░░░░░░░ good news in the ░░░░░░░░ and better news to ░░░░░░░░ If you look at ░░░░░░░░ 4 growth in the ░░░░░░░░ and that s an ░░░░░░░░ growth rate most of ░░░░░░░░ consumption was on goods ░░░░░░░░ opposed to services and ░░░░░░░░ think about the U ░░░░░░░░ economy we re typically ░░░░░░░░ as being a service ░░░░░░░░ So the services that ░░░░░░░░ would reference would be ░░░░░░░░ to a movie going ░░░░░░░░ a ball game going ░░░░░░░░ restaurant We got the ░░░░░░░░ in the first quarter ░░░░░░░░ reopening the economy but ░░░░░░░░ haven t fully reopened ░░░░░░░░ economy for the consumption ░░░░░░░░ services so I d ░░░░░░░░ the economy to boom ░░░░░░░░ the rest of the ░░░░░░░░ into 2022 Because you ░░░░░░░░ the question a word ░░░░░░░░ caution the thing you ░░░░░░░░ to worry about when ░░░░░░░░ economy heats up does ░░░░░░░░ heat and that s ░░░░░░░░ way to look at ░░░░░░░░ inflation ACUNA What s ░░░░░░░░ role in the number ░░░░░░░░ the stimulus checks are ░░░░░░░░ right now and then ░░░░░░░░ also have that the ░░░░░░░░ bump into the unemployment ░░░░░░░░ rate of 300 that ░░░░░░░░ in September ROSCHELLE Yeah ░░░░░░░░ of that is flooding ░░░░░░░░ U S Dollars into ░░░░░░░░ economy and it s ░░░░░░░░ a big role The ░░░░░░░░ news some other things ░░░░░░░░ came out this week ░░░░░░░░ of them is that ░░░░░░░░ savings rate has gone ░░░░░░░░ and people are paying ░░░░░░░░ debt So the good ░░░░░░░░ some people aren t ░░░░░░░░ spending that money Willy ░░░░░░░░ they re actually investing ░░░░░░░░ and saving it and ░░░░░░░░ off debt So I ░░░░░░░░ there s some good ░░░░░░░░ there but if it ░░░░░░░░ t for that stimulus ░░░░░░░░ the fact that we ░░░░░░░░ shut down the supply ░░░░░░░░ of the economy I ░░░░░░░░ t think we would ░░░░░░░░ seen the growth like ░░░░░░░░ ACUNA As you know ░░░░░░░░ Biden and his administration ░░░░░░░░ a lot of credit ░░░░░░░░ the good news in ░░░░░░░░ economy But The Wall ░░░░░░░░ Journal had an editorial ░░░░░░░░ these thoughts Mr Biden ░░░░░░░░ to take credit for ░░░░░░░░ an economy in flame ░░░░░░░░ Democrats in Washington have ░░░░░░░░ dousing dead embers And ░░░░░░░░ economy was rolling out ░░░░░░░░ matter who was president ░░░░░░░░ True ROSCHELLE I agree ░░░░░░░░ that and you need ░░░░░░░░ look back to what ░░░░░░░░ economy looked like prior ░░░░░░░░ let s say March ░░░░░░░░ 2020 The unemployment rate ░░░░░░░░ at a historic low ░░░░░░░░ diversity of the unemployment ░░░░░░░░ being low was there ░░░░░░░░ the economy was really ░░░░░░░░ to you know continue ░░░░░░░░ chug along pretty well ░░░░░░░░ I think it had ░░░░░░░░ momentum This whole lockdown ░░░░░░░░ happened and once we ░░░░░░░░ reopening without the stimulus ░░░░░░░░ I think you would ░░░░░░░░ seen a lot of ░░░░░░░░ growth it may not ░░░░░░░░ been 6 4 this ░░░░░░░░ but I think you ░░░░░░░░ have seen a lot ░░░░░░░░ economic growth because people ░░░░░░░░ the ability and the ░░░░░░░░ to go out and ░░░░░░░░ ACUNA Folks need to ░░░░░░░░ out your Twitter page ░░░░░░░░ they ll understand why ░░░░░░░░ m saying that I ░░░░░░░░ your tie today derby ░░░░░░░░ tie Good pick good ░░░░░░░░ see you ROSCHELLE All ░░░░░░░░ good to see you.”