Pat Miller 0:01
We're going to talk to Julio Gonzalez and he is the founder of the Gonzalez Family Office. He is the CEO and founder of Engineered Tax Services. All that being said, when it comes to things of money, and things that involve money and affect money, he understands what's going on. And I want to talk to him about something that is about to be voted on on our house floor. Today, as I keep watching there for any goings on. Julio, we're going to talk today about the Heroes Act for as I call it, the Nancy Pelosi I need more ice cream for my freezer bill. Julio. How are you? Good to have you with us?
Julio Gonzalez 0:38
Yeah, yeah, we can talk about the handout Bell, right.
Pat Miller 0:42
Oh, yeah. I mean, this this thing is so packed full of stuff. And and if it was difficult for us to pass a $1 trillion bill, which we needed to do to just shore up our economy and shore up families so that we're okay. What on earth makes them think they can just now roll About a $3 trillion bill, and this is going to be embraced by anybody with the brain.
Julio Gonzalez 1:07
Yeah, there's zero chance. But, you know, they're just hoping that there's a weak moment. Right? And then they'll get some of this. I mean, obviously, they know they're not gonna get all that. But could they get some of it and set the stage for negotiating with the President on the payroll holiday tax, and get something repealed, like state local tax? Would that be a big one for them? Would that be something to give them some boost into the elections? I mean, I think that's out for them.
Pat Miller 1:36
In really the fall elections, at the end of the day, I don't wanna put words in your mouth. But isn't that really what this is all about? From the Democrat perspective?
Julio Gonzalez 1:47
Yeah, I mean, this is setting the stage for, you know, September on and getting ready for the battle. And really, this is, you know, where they're hoping to create the media play here. You know, play to the handouts and help people stay at home and help the job not come back online. That's what they want. I mean, the President and the senate want credits, apartment credits, payroll, tax holidays, things that incentivize people to get back to work. And Nancy wants everyone to have $600 a week for the rest of the year to not work.
Pat Miller 2:25
Yeah. And let's just point that out. Because when you talk about a payroll, tax holiday things that help businesses and individuals, it gives them the flexibility to make a quicker recovery to the economy. If we continue this $600 a month payment to people who are out of work ad infinitum. Well, if they're out of work, because they've applied for unemployment, and they were making less at their starter job than they're making now from the government, why would they go back to work this doesn't help the economy.
Julio Gonzalez 3:03
It doesn't help the economy and Nancy wants to make sure they get another 1200 dollars as well. I mean, they would love to, you know, really take control here when they can, you know, give that incentive to, you know, they're buying boats, that that's fine.
Pat Miller 3:18
Explained to us in easy terms, that your idea that what we really need is something like a payroll tax holiday. Tell us exactly what that is, in your view and how that would help us?
Julio Gonzalez 3:31
Well, you know, with, with business, when we pay payroll taxes, we add on 7%, you know, to for payroll taxes instead of the employees, right, so everyone would be getting a 7% raise. But that's a significant benefit for the employers that allows us to bring back more people. For every dollar we say we're able to bring back those other people but not only is it a payroll tax holiday the president wants but he also wants tax credits and incentives for hiring unemployed people. So if you combine those credits, and combine the payroll tax holiday, that would be the right way to bring people on it would give the incentive to the employers that would give incentives to the employees to come back as well. And it would be better than the 600 to seven.
Pat Miller 4:22
Do you think that when this bill dies, and it will, Mitch McConnell has said it'll see the light of day on the Senate floor? President said he would never sign it. So it's like some of the other budget, insane insanity that's come out of the house this year. It will never see the light of day. That being said, when it finally dies, its last breath, would it be wise for the republicans to come out then to begin to tout and push and to get something passed along a payroll tax holiday and to get that done and get that through?
Julio Gonzalez 4:54
Yeah, we have to I mean, they did a great job, in the cares act, and getting that PPP program and getting that open to small businesses to stay open then just to get through those eight weeks, right and get to the next stage. And hopefully, at that point, we would have done much further along with this virus and getting people back to work. So we need a few more weeks. I think the companies are anxious to get back to work, the governors are starting to open up certain states. And, you know, that's all we need is that little extra boost, whether it's the payroll tax incentives, and tax credits to bring people back, you know, a few more dollars into the SBA programs. We still have funding so that we can just get through a few more weeks, get things up and get back safely, of course, and get back to work.
Pat Miller 5:42
We're talking to Julio Gonzalez on the newsmaker line, and he's the CEO of Engineer Tax Services, which you have worked closely in the past, with the administration with Congress with the Senate on tax reform. Do you do you think do you Have a sense, do you have a feel? Are you in contact with anybody on the Republican side where you think that when this crazy $3 trillion stimulus package doesn't pass, they're ready to jump in and begin to do something. Do you have any gut feel as to what next week might look like?
Julio Gonzalez 6:18
Yeah, you know, I talked to, you know, the people at the house and people in the senate every day I talked to Steve Moore almost daily, and he's obviously on the President's Economic Council with our... Sure... Right and Larry Kudlow and they're doing a great job, they have a plan, they have a great plan, put together ready to go that includes the payroll tax holiday includes some other tax incentives to help the hotel's the restaurants get back to business by allowing businesses to expense those entertainment those meals, so it has programs designated for certain industries to help them get back at restabilized and help the real estate community with certain incentives as well, so airlines as well, so they have a plan. It revolves around payroll tax holidays, tax credits to bring people back to work, and to help certain industries in terms of credits, but not in a way that we're giving out dollars that we're incentivizing people to get back to work. And ultimately, we're paying that back to the IRS and Treasury by getting people employed again and bringing the GDP back up.
Pat Miller 7:28
Julio, just a little side questions, we close that our time together, and I appreciate you being with us on this Friday. But as we look at this, not from a Are we going to beat the virus perspective, and not even really from a political perspective. But in the reopening, for example, here in Indiana, where we've begun to reopen, where restaurants right now reopened at 50%. In a couple of weeks, it goes to 75. To where by July the fourth, Indiana unless something horrific happens we should be back completely alone. And does that measured unrolling of getting us back? Does that seem to be the right format? And do you think that states that are functioning like Indiana, as opposed to those that are staying completely shut down? That this allows us to not only bend the curve of the virus but also up, take the curve on business?
Julio Gonzalez 8:22
What a tremendous job Indiana's doing. I mean, they're really a classic model for how the state's to do we're doing a great job here in Florida. Georgia is doing a great job Texas is doing a great job. But then you have states like New York and California that want to stay close that want to get part of this bailout program that Nancy have in her bill and trillion dollars to get them bailed out, sell out their pension programs and things like that. So you know, incentivize them to continue to get close to bankruptcy and get bailed out. But yeah, I think that, you know, we're doing it here in Florida Governor De Santis is doing a great job here as well. We are 25% at the restaurants 50% next week, but, you know, getting back safely, I think we've proven that if we get back safely that, you know, we're not going to have those spikes, we're going to ultimately prevail through this virus and the businesses will start helping get close to the GDP. I mean, we've had to deal with through incentives to get people back to work versus people staying at home and, and states, you know, doing a poor job and getting a bailout.
Pat Miller 9:28
No, I think you're exactly right. You know, I you know, this for the last hundred years, we have not been a country that hasn't had some virus of some type going around. That's why we take flu shots every year. We'll never get to zero. We need to make sure as we're doing our best to handle the virus. We're also doing our best to help our country. Oh, Julio, thank you so much for your time today. I appreciate you very, very much. I hope you'll let us have you back on at some point in the future.
Julio Gonzalez 9:54
Wow. I appreciate being on and I appreciate all you do for the country.