Transcripts For FBC Cavuto Coast To Coast 20171213

Committee have been invited to that meeting. Adam shapiro has all the very latest. Adam . Reporter neil, some of the parameters of the deal we already know. Remember all of this has to pass what they call the byrd bath. It is being scored. If it doesnt pass or meet reconciliation guide lines in the senate and they have to go back to the Conference Committee to work that out. Here is what we know. Corporate tax rate, 21 . Top individual rate, 37 . You would be able to deduct 20 reduction from your taupe rate, top income rate if youre a small business. Mortgage interest deduction, this was agreed two days ago. Interest deduction on mortgages up to 750,000. As you pointed out the president is going to be having lunch with republican members of the Conference Committee, conferees. No democrats were invited to this here is what chuck schumer, Ranking Member in the senate had to say about where tax reform is headed. It is hard to believe they could make this new tax proposal even worse for the middle class than their last one, and heres, their illogic is amazing. So the idea was that salt is hurting the middle class. Instead of undoing, instead of undoing their repeal of state and local deductibility, they reduce rates further on the rich. That doesnt solve the salt problem. Reporter what you hear schumer referring to was the efforts to placate republican members of the house who said they had to have some kind of compromise on the state and local tax reduction repeal, part of that is a 10,000 cap people would still be able to deduct from their taxes up to 10,000 for property taxes and income tax, a combination up to 10,000. Neil. Neil are you hearing that whatever votes you might have gained get it to that point, you risk losing to the house or senate . Reporter no, the compromise on salt was not only to help some of the republicans, senators, theyre not too worried about that, the salt deduct deductions but what they were worried about keeping the corporate rate as low as possible. House was talking about going to 22 to pay for all this. At 21 they got the compromise. Neil thank you very much, my friend. They have broad agreement. But that doesnt mean they can and wont likely go back to twist some arms to get key issues changed. For example, whatever they done the top rate, will that tick off some who feel that is something they dont want to do . Susan collins of maine for example, is one republican, said that would be bad idea. Talk to scott martin and Charlie Gasparino and tempf. What do you think . Corker is no for sure. Susan collins, if they take away Health Care Concessions it will be a no. Neil she might be a no irregardless, absolutely, absolutely. I know it is christmastime and holly, jolly spirit. They need to buckle down to get to work if they want any hope getting it done. Neil scott . I got in the spirit, thanks to you for saying that i think you have a good point, neil, collins is no either way. That makes it dangerous christmastime a deadline. As you said congress not wanting to work as hard around the holidays. Here is weirdest thing, neil, when you talked to mnuchin, i dont know early march, it would be done by august, then done by thanksgiving. Were running up against christmas. What is next . Easter . Missing all these deadlines. Nothing against the easter bunny he may kick this in with a vote or two, running against the deadlines, blowing them. It is getting so complicated. Neil this frantic and frenetic pace, to kats point given the election in alabama, to try to avoid, you know the democratic candidate coming in changing things, they will work with 5248 majority for the timebeing. I think theyre rushing it through. I think its a lousy tax plan on the individual side. Totally. There is nothing reaganesque about the individual tax cuts. Neil trying to do things to satisfy you. How much it adds to the deficit. They are literally screwing over Republican House members in new york, new jersey, california neil this tinkering is it is not enough because the salt thing will kill peter king. Ask, talk to peter. Peter does not represent a bunch of multigazillionaire Hedge Fund Managers. He represents people, better than working class in the midwest, but in new york youre solidly middle class if you make 200,000 a year and theyre going to get screwed to pay for a massive tax cut [inaudible] i think so. Maybe theyre twisting his arm to figure out, here is the thing, can republicans maintain their majority in the house if they lose every republican in the blue states. It will be impossible. I dont know how. Here is the other thing. Remember the talk about the passthrough treatment. This is handout like charlie said to big business, the biggest ones, passthrough, neil, depending how youre classified you may not get the break. Classified as personal Service Business or not, that is another thing talked early on and kat, this was handout or at least some help to Small Businesses. Not so fast, neil. A lot of passthroughs will not get benefits. A lot of people are looking at it a political win at this point. The Obamacare Repeal didnt happen. No wall happened. I was not a fan of the wall but they need a political win. Who knows what the price is going to be. Right. Lets be real clear they are lying about the private equity thing. Oh, the carried interest, yeah. Carried interest. The president keeps saying, i dont know who tells him to say this, wheel make sure Hedge Fund Managers benefit from carried interest deduction, which is huge tax break not by Hedge Fund Managers, but private equity managers. Neil youre knee deep in the weeds. Youre a brilliant guy. You know what it is . A tax break for the rich. Neil one of the things were hearing in the proposal that was sort of shot out today is this 21 corporate rate a 37 top individual rate, a middle ground on the mortgage deduction, state, local taxes up to 750,000 now there, versus a million way it was before. 500,000 at its lows, trying to find some middle ground here, but not raising overall 10,000 cap here. So, what they seem to be saying since disproportionate number of people who are stuck with this high state and local taxes are paying at the top rate, theyre going to give them a bennie of a lower rate which will net them a tax cut. Do you believe that . I dont know what i believe anymore. I mean, like you said, we keep hearing it is going to happen, its going to happen its going to happen. This isnt a perfect bill. I dont love the bill because it will add not billions or trillions to the deficit. As younger person that will fall on me if it doesnt pay for itself. Because of the rush, because of doug jones, a lot of people will push it through even if they dont believe it because they want the political win. Neil young people complain, your generation whines a great deal by the way. Im kidding. But part of the rationale for that is, we dont like the taxes because they dont seem to be paid for but you havent said anything about the 9 trillion in added spending that will be added. We have to cut spending. Im conservative that way. If were going to add to the deficit we need to actually do cuttings of spending. Neil if tax cuts are paid, which is fine, ignoring something nine times bigger, this spending that is going to added to that debt . Cutting spending is very politically tough to do but i would love to see it happen. That is why people vote for republican because they want to see cuts in spending and tax cuts. President trump ran not touching entitlements. It is not spending but entitlements add to the future deficit. He held out the possibility of welfare reform, that kind of thing. That is next year. You have your doubts. I dont see it happening. My goodness that is something, this was supposedly bipartisan. Infrastructure, you mentioned this earlier, kat about other things. Infrastructure spending was supposed to be the easy one. It is december. Im glad they didnt do that one. That is a boondoggle. That is insane. That is more spending, obama tried it. Remember omnibus funny listening to the people on the network how great Infrastructure Spending is, no you, or others. Neil i didnt understand it was. When Obama Network was going nuts on the obama recovery act. It is on the left too. Charlie, the same thing on the left too, because a lot of people on the left who supported it when obama did it now they dont because it is trumps idea. Both side are doing it. Neil the thinking with infrastructure, after you get tax cuts, they are firmly convinced they have the votes to get it done. I dont know where theyre convinced of that. I will give them benefit of the doubt they get it done but next battle could be infrastructure will get more democratic support or so they hope. Do you see that happening . A lot of democrats are reluctant to support anything President Trump does because President Trump did it. That is a lot of spending neil would they turn their back, this is in the dna of a lot of democrats. It goes back to fdr. A lot of problems with republicans. Everything is very divided. Infrastructure spending is not what im concerned about. I would like to see cutting spending. I dont know how they do a infrastructure bill when there so myopically focused on static nature of this tax cut. Paul ryan basically concedes, tax cuts dont pay for themselves. That is why were having debate. He will go out and do Infrastructure Spending . I dont know how republicans will bring themselves so worried about tax cuts not paying for themselves to do infrastructure neil they heard you on our air constantly criticizing and they lowered the top rate Susan Collins, who i love neil they lowered it. Youre still saying not good enough. Youre a tough negotiator. I dont think so. Neil what does Charlie Gasparino want . 35 top rate. I believe Ronald Reagan if he were the president dashes would have spent a year pushing congress to take the top rate down to 30 and selling not a static tax plan but a real tax plan. Neil which would have been higher than when he left office. It would be simpler. Were talking about the simplifying brackets. Were as complicated as ever. Remember the single index card . This is downside of a president not intellectually connected to legislation, right. Neil youre being very nasty. It is true. What has he done . They dont realize how divided party is anyway. You mentioned with infrastructure. No guaranties republicans will go with it. You may have more democrats. Neil orrin hatch on the wires right now, Senate Finance committee head, chief senate negotiator, fair to say he is the chief guy, he is confident it will pass. It will pass but lousy. It will be a political push. The markets like it 22 , 21 Corporate Tax rate. I will buy some apple. Neil all right. We have a lot more coming up here including the latest right now on the markets reacting to this they are still in and out of highs of the day, largely on optimism that the process is moving. To charlies point, some of my other guests point they might not love the details. They seem to be thinking this is better than what we have right now. You crunch the numbers at home. Well have a spiffy calculator very soon to help you with that. There are lots of calculators what this means for you. You know everyone ive used, whether Washington Post or new york times, give me different results. 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I dont know whether you follow but no matter what political side, raising eyebrows, going back to 2016, lisa page communicating back and forth with peter strzok, a key fbi examiner, of course he played a crucial role until last summer with bob mueller and his Investigative Team on donald trump and russian connection. You know all of that. Go back in time to 2016. Right around the time of the New Hampshire primary. Emerge answer of donald trump, leading in all the polls. Lisa page saying god trump is loathsome human. Peter responding, yet he may win. Good for hillary. A month before the election, october 2016, peter strzok saying i am riled up. Trump is, you can read that, an idiot. Is unable to provide a coherent answer. I cant pull away. What the f happened to our country . Deputy attorney general Rod Rosenstein facing questions about all of this moments ago. How with a straight face can you say that this group of democrat partisans are unbiased and will give President Trump a fair shake . We recognize we have employees with political opinions, and it is our responsibility to make sure those opinions do not influence their actions. Pardon me, so i believe that director mueller understands that and that he is running that office appropriately. But if it wasnt the appearance of impropriety based on his numerous, rather strident tweets or not tweets but texts, commenting ad stressorly on the president , what was it . The decision to remove mr. Strzok off that case was made by director mueller, based upon the circumstances known to him. It is important to understand though, that, those Text Messages were uncovered in the course of an Inspector General investigation that is not complete. This not just political opinions. This is disgusting, unaccountable bias, and there is no way that could not affect a persons work. Were you aware of just how biased mr. Strzok was . No, i was not. Neil all right. So obviously mueller ended up getting rid of strzok over texts. Were still not clear whether it was these particular texts. But it probably was. He was among the real leading investigators going after the connection, the dots, whatever you want to call them between donald trump and his team and russians and this whole argument for collusion washington examiner, White House Correspondent Sarah Westwood on that alone. No matter what you think of the texts and the timing of them, sarah, obviously mueller was concerned about this is just not feasible, you continuing in investigatory role here, and he got rid of the guy . Exactly. A lot of people predisposed to believe the Mueller Probe was biased are seizing on that key piece of evidence. Obviously if mueller removed peter strzok something was amaze here. We only heard of 375 of the texts that 10,000 Inspector General obtained. There could be more. We dont know the full context how the Inspector General even knew these texts existed, if someone was aware peter strzok was biased enough to alert the Inspector General to alert those texts. There is a lot we dont know about Peter Strzoks involvement in the case but Something Congress is pressing the Justice Department on now. Neil im not a lawyer, obviously however this Mueller Investigation turns out, if it is unfriendly or targets the administration, youre providing ample opportunity for the administration and others who might be targeted to come back and say this was biased from the start. This was heavyhanded from the start. Exonerate me. Exactly, you bet Defense Attorneys for people caught up in this probe are going to try to get this kind of evidence admitted in court. To try to say the investigation was tainted politically from the beginning but i think one of the points that is getting lost in the whole focus on the Mueller Probe, how deeply peter strzok was involved in the clinton email probe at the time he was sending the Text Messages. He was one of the supervisory agents on the case. He was one who softened language comey made in july of 2016 exonerating Hillary Clinton. Neil aware of what he was texting and exchanging back and forth, knowing that simultaneously there was this concern about released texts, emails, et cetera . Exactly, while at the time he was sending Text Messages deeply involved in the Hillary Clinton campaign. At the time republicans were accusing the fbi soft pedaling the investigation. Peter strzok was overseeing a lot of those decisions while sending those Text Messages. It validates a lot of criticisms republicans had about the clinton email investigation at fbi. Neil what bothers me about this, i try to be a fair shooter in all these things, but we live in polarized political climate. I see little coverage of this on other news networks. I dont watch them around the clock. This would be a fair and legitimate news item to have, a guy very instrumental in the early days of this investigation certainly going back to the whole clinton dustup, and later on trying to look at russian collusion thing, Trump Administration before and since his election, it would be worthy just to share some of those texts, none of that. So is this being treated as, you know, political matter, the right is making a big deal of it, it is not really a big deal. The hunt for the russian involvement continues and this is just noise . Well today was one of the first days that you did see it start to gain more traction in the Mainstream Media and i think that is because Deputy Attorney general Rod Rosenstein is answering questions before congress right now that the texts of these emails were released to news outlets. Neil this was prescheduled, im not dismissing what you were saying but they were kind of dragged into this, right. What youre seeing the framing of this the republicans seized on this evidence, trump is using it as ammunition for his antimueller crusade. Were not just looking at allegations against peter strzok on the merits. It is usually wrapped up in layers the way republicans are weaponizing this information. Neil you got a good gut on this stuff, sarah. I dont. Im lost. Every time i think it will go a certain way it goes the opposite way. Where do you think this is going . There are some reports that mueller appears to be wrapping up his investigation. Others who say, no no, these are all the signs of one that could be expanding. What are you hearing . Well, if you compare this investigation to the Hillary Clinton email investigation after the fbi was done interviewing the top level aides in Hillary Clintons orbit and hillary herself, the investigation shut down almost immediately afterwards. So if mueller is indeed done interviewing highlevel white house aides that could signal end of the probe. We also know mike flynn very recently pleaded guilty and is cooperating with the Mueller Probe. So we dont know if that cooperation will yield additional lines of inquiry. It is hard to know exactly where it is. Neil Sarah Westwood, thank you very, very much. Thank you. Neil all right, we have been able to do the some is, cross on ts, what apparently has been the tax bill that the senate, house, Conference Forum are sheaing up to introduce as the plan. It will call for a top individual rate of 37 versus 39. 6. Right now, it was 38 1 2 in the senate plan that was originally proposed. Down to 37 . It set as 21 corporate rate, not the 22 that was originally feared by some or the 20 , that was originally passed out of the house. And the senate. But again, all of this were told, to offset the damage that is going to befall those who live in hightaxed states. It doesnt address anything about the amt, how that sticks around for businesses and individuals from best i can tell. But these concessions in this wiggling back and forth seem to be a pay to pacify those who are saying that theres no way in heck they could send that back to their constituents with a straight face but in doing so they might have lost a couple senators along the line. Rand paul concerned about costs and of course Susan Collins of maine very, very concerned about lowering the top rate. Rand paul is concerned about costs built into a spending package almost attached to this, if you think about the concessions made to get yes votes on the tax cuts involved some concessions in that spending measure. It gets a little convoluted here. Suffice it to say, it is no sure bet this just glides through the house and senate. It is just the latest incarnation. Well have more after this. Building a website in under an hour is easy with gocentral. From godaddy in fact, 68 of people who have built their. Website using gocentral, did it in under an hour, and you can too. Build a better website in under an hour. With gocentral from godaddy. Im not really a, i thought wall street guy. Ns. Whats the hesitation . Eh, it just feels too complicated, you know . Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade neil seems like the rest of the world is finally catching up to fox business america. If you had been right here of course you would have heard first what the rest of the Financial Press is now putting together, and that is that the senate and house conferees agreed on a broad blueprint that goes Something Like this, an individual top rate that false to 37 , a corporate rate that will be at 21 and they do address the alternative minimum tax but largely for corporations. What is still stuck in the thorns here is how to deal with that for individuals but at this point it does seem to be closer to what some congressman and women have been calling for but not necessarily what all senators have been calling for and that of course is where the margin is tight. Im talking about even before the alabama election yesterday that produced another democratic pickup. Go to jonas max ferris. Jd, market likes this, moving forward but there could be early trouble here. What is your sense . Neil, there are two sides to it, right . On the plus side this will clearly be beneficial for corporate earnings. Earnings are what drives stock. It is not Economic Growth. It earnings that come from growth, tax cuts in this case. That is positive. On the downside, you have inexperienced new fed may be pushed into a little bit of a potential policy mistake with tax cuts coming into a late cycle, nearly fullyemployed economy. Neil it is anyones guess how the market ends up today, jonas. But the betting is corporate rate dramatically lowered, now rates at the top could be lowered, we dont know what possible offsets, besides losing state and local tax deshuck, even 10,000 figure, even bringing down to 37 wouldnt fully so that problem for well to do. What do you think . It looks like it is going down, got a little more so when they lowered the top tax rate a little more than it was. The top tax rate is still higher than under the bush tax cuts which was 35 . This primarily Corporate Tax cut. Strong economy, unemployment low, but this isnt going to increase demand to the point where we have 4 1 2 inflation and fed needs to jack rates up to the moon. The Corporate Tax cut, that is the biggest tax cut. That will lead to more production and more with mortgage stuff, could be less demand for housing and homes. Might not be inflationary. Fed doesnt want to raise rates of a tax cut that still might not happen. Theyre in a bind. Asset bubbles forming with crypto currencies and stock market. Theyre in a dicey situation. They dont want to cause recession but limit speculation. Inflation is not high right now. Neil they are expecting to raise rates today. And then it is anyones guess what they do in 2018 and what effect this would have, that is the tax cut which would normally be stimulative. Jay what do you predict . I think consensus says there will be at least two more quarterpoint hikes. What do you say . Right, neil. I think market moved to two hikes next year. Fed currently saying three. Well see what they say this afternoon. Some prognosticators say four. The risk we have a yield curve quite flat, right . 60 basis points between the twoyear and 10year. If the fed raises rates several times while the long end of the curve is protected for demand of longer duration safe assets, you could lead the fed into creating an inverted yield curve which in turn the market could create, could look at as a sign of recession and have significant stock market selloff. I think its a little ironic, potentially the tax cut, viewed as something progrowth, could actually turn out through a mistake or two on the fed side, being negative for growth, creating conditions for a stock market selloff and recession late 2018, early 2019. Neil do you see that happening, jonas . I think there is a risk of the fed, this is always a risk, raise rates to stop assets grow faster than economy. Happens all the time. They try to deal with it. Happened in 29. Happened before the real estate crisis. They caused recess which essentially does effect to hurting stock market. Realistically we dont have inflation that would require high rates. Quarter paint, halfpoint. Inflation is not there. There is huge amount and demand to own incomeproducing assets by retirees, et cetera. They are in kind of a bind. They want to stop recession and get normal rate but dont want to cause a recession to do it. Neil thank you, both. These guys are geniuses. When they refer to inverted yield curve, when shortterm Interest Rates are higher than longterm Interest Rates, often can presage a lowdown in the economy, recession or dislocation in the markets or all of the above, but not all the time. When you hear that expression thrown around, worrying economists that not natural order of events where rates gradually move up depending how long you have a particular treasury note or bond. Longer you have them, a little more bang for the buck. In this case you get the bang for the buck real close to maturity date. With future days out, years out, it is actually lower. That is the market telling you were not happy about this. Were on it after this. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. Neil initial agreement a final house package. That doesnt mean they can go back for details and swap and compromise on initial details. They are speaking with the president of the United States, at least members of the republican Conference Committee powwowing with the president at the white house. Good to have you. You were a no before this matter came up and you were concerned rightly so, constituents, effect the of losing state and local Tax Deduction. Do any of the provisos added here, including lowering the top rate change your mind . Not that i have seen, neil. Salt, state and local Tax Deduction, is the mostused deduction by the people i represent. Most of the people in new york city who use this itemize. That is the most important issue. I have led a direct appeal to the president to save salt. I was joined by lee zeldin and pete king. Others may join us. Were making appeal to the president. He is from new york. He is new yorker. He knows how important to the people that work there, nurses, sanitation workers, police, firefighters, carpenters, everybody who works, hardworking tax paying people this, is the most important deduction for them, were asking him to save it. Neil it looks like, and again nothing is final as you often remind me. Looks like what came out today, keeps that, you know, state and local Tax Deduction at 10,000 tops, and doesnt go beyond that. The corporate rate inches up a little bit from the top rate but the top rate comes down to 37 but dont seem to move the needle for you. No. Kneel, 10 of the salary goes to state and local income tax. Family of four making 200,000, which is middle class in new york city, might be extravagant someplace else in the nation, in new york city that is middle class. Struggling to put food on table, and paying their mortgages. If they pay 20,000 in state and local taxes, have 10,000 property tax. Right now theyre receiving 30,000dollar deduction. That 10,000 will not help them. Probably end up being a tax increase for the family, how does the process work, congressman . This comes out of the committee. Everyone bounces it around. These conference members are meeting at the white house right now, the republican ones. Can you add things when it is put to a vote in the house . In other words, can you add, or is it upordown vote . I think what will happen, you will see the, they will whip it after the details come out. They will see where they stand. If they have 218 votes in the house, if they have 50 or 51 votes in the senate, and if they dont, they will have to tweak it. We will express to them our desire to have salt reinstated. That is so important. Not just people of new york and new jersey. People of california also hightaxed states who contribute grittily to our federal greatly to our federal governments budget. Were donor state, neil. We send a dollar and get 79 cents back in resources. We will continue to make that plea. More than just new yorkers. My concentration are people of staten island, south brooklyn, people of new york city, as you point out, im only republican member of congress from new york city. So i feel responsible to all of our citizens but others in the nation that would be hurt if the salt deduction is eliminated. Neil obviously they did this to get some votes. I dont know where theyre coming from. They dont come from hightaxed states like yours, where are they getting this . I just dont know. Im not privy to the whip count, neil. Whether the tweaks others were demanding but everybody in leadership, everybody in the conference knew what our concern was, and it is that elimination of the salt deduction. Neil congressman, thank you very, very much. Well watch this closely. Thank you, neil. Neil that salt dedoes, the deduction for state and local taxes both the house and senate had removed. You cant do that anymore up to 10,000. That looks like it is staying. Now the one condition made to ease some of those who will be stuck with a big ol tax bill to lower top rate, since disproportionately this fell on upper income, not exclusively but largely. So their rate was lowered. How many votes that ultimately wood, whether it did anything to satisfy Susan Collins of maine who you might recall in the beginning said i dont think it is a good idea to lower the top rate at all. How would she feel about this now . You concede to one side you risk losing on the other. Wheeling, dealing and count only has just begun. Well have more after this. Neil boy, the stuff you can find out after an attack and the guy who is trying to perpetrate it is alive and well. Connell mcshane with latest on all of the above. Hey, connell. Reporter we learn more as the day goes on. All federal developments weve been reporting on still stand but new details on the suspect in the new york city attack actually come in from bangladesh. His wife, suspects wife reportedly called him from bangladesh morning of the bombing. Abc news, told them, she saw quote, no signs this kind of thing was coming. She called the guy, akayed to wake him up for work. She quote, never ever spoke badly about the United States. Of course that would differ from what the suspect himself alleged to have told authorities here after the bombing. The criminal complaint we learned ullah claimed to carry out the attack for the Islamic State and said to be angry about u. S. Policies in the middle east. Second thing from bangladesh, that ullah did not appear on any of their terror watch lists. That does fit in what were hearing from authorities who are saying nothing would have tipped them off about this guy before this week. We put it all together. We expect ullah make amounting to initial Court Appearance soon, probably today, likely via videoconference from the hospital bed in new york. When the pipe bomb went off in the subway tunnel the other day he was most seriously injured person with the burns to his hands and midsection. He is still facing these charges in the hospital, neil. Neil is he singing like a canary or shut up . Usually the routine by security they do talk a lot in the beginning. Then they get a lawyer. All bets are off . Reporter i would go back to your initial statement in the beginning he was said to be quote, unquote cooperative. If you read through the criminal campus complaint unsealed yesterday there was a lot of detail in there in terms of what he wanted to do. He clearly wanted a much worse attack than the one he was able to carry out, and had been planning it for some time. They found all kind of material in his apartment would lead you to believe he was planning for some time. He wasnt, as many of these suspects are not, very closed about his ideology. Talked about doing it for isis and having been radicalized online a few years back. All of that was out there. Whether he is still talking as liberally, im not sure. Neil connell, thank you very much. Connell mcshane. Officials say the suspect, stop me if you heard me before, was radicalized through isis but in a keen kind of a departure through a very advanced online sort of a recruitment tool. To general jack keane very aware of us and this is something we have to watch. It is not sort of a conventional warfare game but we have to get it into our strategy. The general is with us now. General what do you make of this . This guy showed no signs at all of being radicalized seven years ago when he first got here but became disenchanted, went to the sites that galvanized the disenchanted and away we go . Certainly weve had Great Success taking down isiss socalled caliphate in syria and iraq. Particularly the one in syria affect the people around the world because from there they do all their messaging. Now they moved to the southeastern part of syria. Theyre still able to do that kind of messaging. Some of it is quite sophisticated. So weve not been able to take, we havent had as great of a success against this socalled virtual caliphate where theyre up on the internet on regular basis and in chat rooms, et cetera, being able to communicate with people who express interest in what theyre doing. Were working on that but there is privacy issues associated with all of this as well. But, yes, he was up on isis sites and also on the al qaeda site. I think it provided inspiration to him, motivation and also provided him with some techniques and some technology to be able to fashion a bomb. Thank god he wasnt effective in doing that. Neil yeah. Because he clearly was in such a place where were so familiar with and amount of people there at rush hour, the busiest place in new york city at rush hour in that area. Neil we take great relief in that but if he had his wits about him, carried it off the way he intended could be a very different story to your point. General, one thing, you and i chat about this about the role of searching out internet communications, social media writings back and forth, privacy advocates get worried about that saying in the efforts to get bad guys or potential bad guys youre spying on good guys. What do you say to that . Well, i do think that we have to protect peoples rights, thats for sure, but, when we have someone in the crosshairs so to speak who is likely suspicious, then there are ways for us to acquire more information on that person. In terms of emails, phone conversations and the like. There is provision for to us do that. We go to the Foreign Intelligence Security Court and we ask them for permission to do that. But really our challenge is much deeper than that because the selfradicalization is taking place while someone is working, has relationships, may or may not have some kind of a social life, is going and practicing their religion, and usually there are some signs there because that persons behavior sometimes dress, certainly speech, begins to change and at that point we have to sensitize the American People that at that point someone should Say Something to Law Enforcement because there is potential here. If it turns out to be unfounded im convinced the way our Law Enforcement will handle this protecting that individuals rights there will be no harm, no foul to that person but if theyre right, were actually going to save lots of lives. Thats for sure. Neil were couple minutes from the spray in the white house. He is meeting, the president with senate and house conferees technically on this tax package matter but defense issues no doubt will come up. Maybe the alabama election will come up. Ahead of that, general, do you have the sense that priorities for defense spending are in place when it comes to the agreement keeping the government going after the 22nd because when fund presumably run out . Because democrats say if you increase defend spending, you have to increase nondefend spending, therein lies quite a battle . It is confusing for the American People. We have a National Defense authorization act that i was got president and congress what they want, a significant plusup in defense over obamas funding in the past. However, for the Appropriations Committee it write the checks and make that actually happen the sequester caps have to be removed. They have been suspended for two years but they come back into play, now, we have to one, extend the suspension for two years or two, remove them. That will likely need democratic votes in addition to republicans to be able to do that. There is some doubt whether this 700 billion will actually get funded. But i suspect, as we get closer to that vote, that yes, i think momentum will be there to fund it because the democrats will be given something in return for that. Neil all right. General, thank you very, very much. Again general jack keane on a very real threat, that is this ongoing Terror Threat and whether this funding we is adequate to address that and our dip lap dating defend needs. Republicans say it is not. If it is not, democrats say you add nondefense. Something the president of the United States will touch on with conferees at the white house. Lets listen in. Well, thank you very much. We appreciate it. I will be also speaking at 3 00 today, a little bit more about what is happening with this incredible journey and what were doing bringing down taxes, the largest tax cut ever. I appreciate you being here today. I want to thank the incredible members of the house and senate who have been working so hard. Were very, very close to a historic legislative victory, the likes of which rarely has this country seen. I think i can say, kevin and orin, that were getting very close. I know a lot of the folks that we would like to have here, we said, if you have your choice, stay back, get it done, right . Theyre all working and negotiating some final points but were very, very close. This bill is vital to the American People for many reasons. First of all it is going to have a tax cut the likes of which we havent seen for not only business but for the working families of our country. It is really a tax cut based on jobs and also very good for companies which also means jobs. The typical family of four earning 75,000 will see an income tax cut of 2,000. So that is two thousand dollars in their pocket additional to spend on whatever they want to spend, or, they could save the money also. You do have a lot of families, in the old days they saved money. But they will be saving it in many cases. Second, the bill is going to cut taxes for american businesses, both big ones and small ones, so they can grow higher and compete all around the world. Right now theyre paying 35 , and thats the highest in the industrialized world, in many cases by far. And well be bringing that down to a number that will be extremely impressive to a lot of people. I dont think i will give them the surprise yet, kevin right . I hold the surprise. I think businesses will be very happy and be able to compete all over the world. Third, were simplifying our broken system. So complicated that nobody can figure it out. Tax returns that are very, very is big and large they have to Hire Companies to do them. Were simplifying the plan trillions of dollars coming back to the United States, money offshore. You have been hearing me say 2 1 2 trillion dollars for years. 2 1 2 trillion has grown. Probably 4 trillion. Could be higher than that it is so much money we dont even know how much it is but you look at the great companies, apple, some others they have billions of dollars overseas they want to bring be billions of dollars overseas that they want to bring back in now they will bring it back and will be spending that money and they will be spending that money right here in jobs and lots of other good things. While the media has focused on the differences between the house and senate bills, i can only tell you that we have very come in very representatives right here. I can tell you that we are very, very close. I want to thank senator orrin hatch. He has an incredible and kevin brady, incredible. You have been really amazing. Although i should say lets sign. Lets get the vote first. [laughter] i want to thank my whole team, gary and steve. My whole team has really something special. Diane, thank you for everything. Appreciate it. We are very close to getting it done. We are very close to voting and our economy, as you know, and as search terms where it was when i took it over. We had an economy going in the wrong direction. They can say all they want about the last administration or Even Administration this country was in the wrong direction from economic standpoint and you saw where it was, one of the early 1 and 1. 2 in going down. 401 k s right now where i met last week in new york city with a very commend very fine group of policemen and they were also happy about their 401 k s. They feel like they are geniuses because in one case he set them up 39 . I see all the guys during the booms are smiling. [laughter] he is not the one that is the highest in the close says. Hes got a big smile on his face. Thank you. Usually with the price they wont admit it, and that he does because hes beyond the press. I just want to say that people are up 30 , 40 , 50 depending what is then there and they are very, very happy. We think the economy has a long way to grow and may need that tax cut in all that money will be spent on expanding businesses. So many Different Things in this bill to create jobs. For me, this is a bill very simple. A massive tax cut for the middle class and its about jobs. The jobs are really defined by the companies. They will be expanding and creating jobs. You know, in education, we are talking choice. In jobs we will be talking choice, too. People go for one job and they dont have many options. They will have plenty of options. Five, six, seven jobs and they will pick the one they want and wages are starting to go up. The first time in many years wages now are actually starting to go out. A lot of great things happening. What is really something that i think will be the copper is the massive tax cuts that we are planning that hopefully within a very short period of time will have signed into law. It will be bigger than anything ever done in this country, bigger than any cuts and you will also be reformed. And there are also some other things in the bill that are very big, somewhat unrelated, but ultimately it is all related. I want to thank everybody at the table, mike, everybody at the table for being here. I want to have a very fast lunch and you can go immediately back and finish it out. I feel very guilty having you here. I might need to go back immediately and finish about. It is something very special. Thank you all. [inaudible conversations] we will see where it ends at. It is at 35 right now. And it got to 21, i would be thrilled. We havent set the final figure yet. Certainly 21 is a very great difference. [inaudible] i think its very important for the country take it a vote next week. Not because we lost the seat. A lot of republicans feel very differently. Very happy with the way it turned out. As a leader of the party i wouldve liked to of had to see. I would like to endorse the people running. I will tell you that to me it is very, very important to get this vote. Not because of that, and i dont know what the vote will be. I dont know the final. We have a margin of two plus our great vice president. So i really think we are going to get the vote, but i will say, we have to get more senators and more congressmen that are elected in 18 and then you will see a lot more of what we are doing right then. [inaudible] i dont think it will affect it. The biggest thing we have worked on also has to do with other subjects here does he know i wont mention the subject, but there is some subjects in here that are very vital beyond pure tax and tax cuts. I am just very excited by it. This is one of the biggest pieces of legislation numbersign by this country and i can tell you everybody around this table, we are very excited about it and thank you all very much. Appreciate it. Thank you very much. Neil i always hang on because you never, ever know. The president indicating when he meet with the house conferees including orrin hatch of the senate leading that particular body and kevin brady of the house ways and Means Committee that he likes what they are cooking up, even with a slightly higher Corporate Tax rate. 21 is a lot lower than where it is now at 35 although few Companies Pay that advertised rate as it is called. Most in the mid to upper 20s, but it is still a big reduction in air. This is not the largest tax cut in american history. It is substantial. No way to minimize back, but inflationadjusted terms is about a quarter the size of Ronald Reagan and if you combine that with the 86 tax act in bringing taxes from 70 to 28 and also reducing all of their tax vans by an average of 15 , it doesnt even come close to that. This is substantial just the same. Citizens united president David Bossie David bossie, what do you think . Im excited. This Conference Committee is getting close to a vote unless they do that he will send it to the president. That will be early next week on the tuesday of next week and well have the first major tax cut is Ronald Reagan. As you were just talking about. Its been 35 years and the American People deserve a tax break, taxcut and this is what the president promised during the campaign and it is what he is going to deliver them. Tree into many focus on the idea that a lot of what he is proposing here, what republicans are proposing is centered on Corporate Taxes going down and they have rushed the individual rate. Do you feel thats the top rate. They still keep the deduction for state and local taxes off the table, not moving from the 10,000 figure and the lower top rate was enough for to shield the damage in the high tax state to buy a larger in this bracket. What do you think . Book, i would but at the top rate come down much more than what im hearing down from 3926. That is a tax savings, but not good enough in my book. I think that is tax simplification aspect going from seven bracket 23 is obviously a big plus, making your taxes simpler to pay is part of the process and i hope we still dont know exactly whats going to come out of the Conference Committee, so we are little bit ahead of the curve. It sounds like its tax cuts for all americans as opposed to some and i think that is a very positive thing. Neil david, thank you are a much. David bossie, Citizens United president , fox news contributor. Pwc partner driven development leader, allaround smartypants guy. You crunch numbers for a living and youve had a chance to crunch some of these and they been adjusted with the changes, 21 corporate rate come in doing something for corporations, not yet for individuals. What do you think . It is likely that corporate amt will go away and be revealed because that is sort of a backdoor way of taking the benefits corporations, especially multinationals off the table. Our sense is individual amt may stay. Neil that feels another things individuals feel. The corporate rates stay. Hours are temporary for 10 years and is semipermanent. And now this latest Development Goes for them, not for us. What is to stop average folks im saying wait a minute . The individual amt and i spend my working theory. It may be a little bit of a backdoor way to get a high tax rate for individuals with a lot of carried interest income. So no one has said anything about it except you heard it here first moment. Neil it stands out by still being in here. We push back and wipe out back in the door. Dont know when the Conference Committee will be in or out. Interesting development on the 21 , 100 billion for every one percentage point has to get the joint committee on taxation. Once they have an agreement and report coming out, and the next step is to draft the language and not as 500 pages of legislation. They are doing that sidebyside. The step after that is doing to the joint committee on taxation to make sure all of this is within the 1. 5 trillion over 10 years and a little inside baseball but they have the Senate Parliamentarian and go line by line to make sure it is all sort of legit. A lot of steps here. It is hard to tell whether or not all of this is going to stay within the 1. 5 trillion. It is possible if they need money to him of the corporate up a little. Neil or do they just change the assumptions . Elton to the estimates, this startled me, the average rate of growth anticipating the next 10 years is 1. 9 over the next 10 years. If it is even to. 5 to 2. 6 , you come close to paying for a come average over three points at in the most recent quarter. You are up to the races. Do you buy that . Was centrist dean is a static or since dynamic you can line up 100 economists and you would hundred 50 different answers. That is a hard thing to tell. The interesting thing is we have momentum with the economy right now in the starting place for the economic model is the historical look at Economic Growth and historical look at inflation. We have a head start in the bullish attitudes of ceos and individuals right now in Consumer Confidence will catapult the thing forward in terms of Economic Growth and all of the models could be wrong. Neil coming out the gate you see them quickly. The markets are anticipating this will pass. What happens if it doesnt . A lot of bad turns around. The question is when. If it doesnt happen that we dont have the Christmas Present red and green right there, but if we dont get the Christmas Present ever but he wants because of the procedural steps to go through, if it is well telegraphed and understood it will happen, the market can digest that if there is a major wrinkle like the democrats block this procedural way, the market retreat a little bit. Neil the market seemed nonplussed, but were you surprised by that . Watching fox news they markets went down in us that a gesture through, the market neil they were thinking this will all be settled before the democratic senator elect takes office. Correct. If someone decides to contest, you have to find it himself, and they will have the Luther Strange but in the interim. Neil what a mess. Good seeing you again. You have to come within a half a percentage point of the guy who is the official winner or deemed the official winner right now that does not appear the case that roy moore is 1. 5 Percentage Points behind that he would have to fund his own if that were the case for the president doesnt think these alabama results will affect the overall agenda. Just because he preferred republicans fill in the sea. Hillary von in Montgomery Alabama with the latest. Still not giving up on this. Right. Still not over for the moore campaign. Refusing to concede until they certified the vote and that will happen until after chris is. Calling the race could still get a recount to pay for it. In washington Mitch Mcconnell instead of facing the liability is now facing a deficit and needs to figure out what to do through Congress Without ever public info. Corey gardner releasing a statement that he hopes, but other key republicans in congress are turning their back on steve bannon. Peter king saying he aint Steve Stivers toxic to President Trumps agenda. I think steve bannon did the right thing last summer. I dont consider him a conservative. Some Irish Catholic working guy. To me he looks like some drunk who wandered in off the street. Im not trying to be sarcastic. Racial division. Steve den and im brave or radio saying he is not going anywhere and he is ready play the long game. Neil thank you very much. We dont know enough not heard anything more on this or whether he was still aggressively pursed to this. Right now hes putting the pedal to the metal to protesters. The media is calling out trump pollution, but not a whole lot of proof. How does that work on the other side when theres a lot of antitrump Text Messages from people on the inside of the Justice Department. Where is the reporting . After this. I used to have more hair. I used to have more color. And. I used to have cancer. I beat it. I did. Not alone. I used to have no idea what the American Cancer Society did. Research . Yeah. But also free rides to chemo and free lodging near hospitals. I used to maybe give a little. Then i got so much back. I used to have cancer. Please give at cancer. Org. Im not really a, i thought wall street guy. Ns. Whats the hesitation . Eh, it just feels too complicated, you know . Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade neil all right, you might recall senator corker was the only no vote the last time the senator voted on a tax package released and not even in this reconfigured one hammered out by conferees from the house and then it come he still has his doubts and hes undecided on the tax code that is deficit concerns have not been alleviated. Of course this is going to be something well watch very closely because it is her to drive to the new democratic alabama senator, the margin for error is not one senator assuming they got no democratic votes and corker would appear to be up for the time being. That could change and make them a point of this by voting on it before this Senate Candidate takes his seat in january. Some distressing signals at this early going. Meanwhile, revealing Text Messages from an antitrump fbi agent also revealing he was very, very girly pro Hillary Clinton. Gerri willis has the skinny. You got that right. Fbi officials help investigate last year exposed only their disdain of charm, but also support for Hillary Clinton. The series of Text Messages. The following texts were sent by a top counterintelligence agent, peter strzok to his mistress and senior fbi lawyer, lisa page. Strzok went on become one of the top investigators and Robert Mueller is probing the election could the election. March 4th, 26 teen from a strzok text of this twopage. Hillary clinton should win 100 million to zero. I know. Also, did you hear him make a comment about the size of his im not going to say the name of his body part on tv. This man cannot be president. I want to believe the pastor throughout for consideration that there is no way he gets elected, but im afraid we cant take that risk. Its like an insurance policy in the unlikely event you die before youre 40. You should note here that we dont know whether amd in this case and that text is deputy fbi director Andrew Mccabe or andrew weissmans, pages set the fbi. Either way its concerning. And today staring with Rod Rosenstein, the conversation was pretty much on fire as republicans pose top questions about the impartiality of fbi investigators. This is peter strzok, head of counterintelligence fbi, who i think had a hand in the dossier that was all dressed up and taken to the fisa court. Hes saying we cant take the spirit we have to do something about it. I can assure you i consider very important to make sure the federal review was done Inspector General during a thorough review. We found Text Messages as part of the review. Reports on the political predisposition and potential bias of certain career agents and department voyeurs on special counsel molars team are deeply troubling to a system of blind and equal justice. Any opinion on the lack of fruit from the poisonous tree by a strzok . Is a legal matter, i can tell you if evidence 1510, that would raise a concern for me. A pretty feisty hearing there. Rosenstein also said people who have political views, i. E. The fbi agent we are talking about, but those may not interfere with their actions. Alices defense. Back to you. Neil the media has largely been ignoring this story, focusing more on reports of collusion involving donald trump and surrogates of the russians, et cetera, et cetera. The prearranged and prescheduled testimony on capitol Hill A Rosenstein and that is the two media reporter joe, what do you make of all this . Roy moore is the lead today, but this should definitely be the second most reported story because this is that one like all the others based on unnamed sources, not vetted properly information. No, this is actual stuff you could present. No disputing it in any way. What we are getting to now is where we were in 1998, 1999 with the ken starr investigation were half the country sees the Russian Investigation not a safe pursuit of a criminal act but a politically motivated endeavor. No matter what mueller comes back with, half the country will say im just not buying it because this was a fixed fight from the beginning. Neil a lot of people say is given as the tax fire, you know, this guy is out of there. I dont know whether he can him over the specific tax became too later his own suspicions that he had a bias in the way he was going about things. Lets assume the tax. I always wonder who might be there leading not been part of the investigation. Is no slouch in all this. Outlet in your weissman who is that the Hillary Clinton election party. What was he doing there is an fbi agent. These texts going back and forward between a man and his mistress, all they did was seemingly talk about politics. He is to say the one to get pizza or a steak sandwich when i would text of microfriend. I dont understand. Its so boring. Dont you have anything else going on . No romance whatsoever. Neil im wondering where this goes, though. Im not a lawyer, but when a case doesnt go your way for illicit punishment and bad decisions against the administration can always come back and say it was the bias, all for the world to see and we think these decisions were these charges are null and void. Where does this ultimately lead . Elite to fracturing the country just like i was saying before. The only evidence so far seems to be posed election. As it pertains to Michael Flynn and conversations with the russian ambassador. Obviously, we havent seen evidence and collusion before the campaign when you can affect votes by working with russians. A lot of people keep you in russia, russia, russia. When they do hear anything of substance, something that happened after the president was elected. I just dont see how a lot of people, particularly Trump Supporters will ever accept it. It is scary stuff. The third most reported story should be by the way apparently there is a twohour program happening on saturdays on january 20th on caputo lied because you dont work enough. Neil it is a guilt thing. They are looking forward to that. Hopefully ill get you to come in and talk to s. Thatll be a a pleasure. They came over and good luck with that. Again, six days a week. Why not. How the sunday show. Neil they never told me it was six days a week. I guess youre right. Wait a minute. We have a lot more coming up, including the whole void more thing. You aint they would be relieved. Yeah, after this. jardiance is the only type 2 diabetes pill proven to both significantly reduce the chance of dying from a cardiovascular event in adults who have type 2 diabetes and heart disease. And lower your a1c. Wow. Jardiance can cause serious side effects including dehydration. This may cause you to feel dizzy, faint, or lightheaded, or weak upon standing. Ketoacidosis is a serious side effect that may be fatal. Symptoms include nausea, vomiting, stomach pain, tiredness, and trouble breathing. Stop taking jardiance and call your doctor right away if you have symptoms of ketoacidosis or an allergic reaction. Symptoms of an allergic reaction include rash, swelling, and difficulty breathing or swallowing. Do not take jardiance if you are on dialysis or have severe kidney problems. Other side effects are sudden kidney problems, genital yeast infections, increased bad cholesterol, and urinary tract infections, which may be serious. Taking jardiance with a sulfonylurea or insulin may cause low blood sugar. Tell your doctor about all the medicines you take and if you have any medical conditions. What do you think . I think its time to think about jardiance. Ask your doctor about jardiance. And get to the heart of what matters. Neil all right, the president short time ago, saying he doesnt think alabama results will affect his overall agenda. He would have preferred a republican winning, but it didnt happen. What does it mean next here . Does it telegraph trouble for republicans beyond alabama that maybe this is a sign of something sinister to come. At least in their eyes. Few republicans dominating washington. To wall street journal senior media reporter shelby holliday, and Deirdre Bolton back from a late night as we were covering this last night. I kind of think republicans are relieved. I think so too. Neil they are relieved from this one . From a branding perspective, this is a relief. And to me, roy moore was really an outlier, lets take some of the controversial comments and im parsing here, right . Neil right. Against homosexuals, lgbt community. Questions, hard allegations that concerned large group of women. There were the contextual comments that favor slavery. Im paraphrasing. For me, he was not representative of the republican party. I do think youre right, relief is front and center. Flipside is for the democrat, for the other side, i think this energizes when we were talking last night about the money game. I think this could energize some donors on the democratic side who say, oh, okay, we had a win in virginia which was on the line. A win in alabama. Maybe if i werent neil shelby made a contest of it in georgia. The motif democrats are building is not crazy. Deirdre is right, its hard to say this is a bellwether or warning shot. Articles said georgia tilted blue or making suggestions this is a big loss for happens and in reality people voted against a man who is accused of child molestation. Neil the 5949, does it limit the president , his initiatives . A reason he might want to come out the gate with infrastructure hoping to get more democrat support . They had a stubborn majority in the first place. This will be interesting, theyre not going to wait for doug jones to come to the senate. We will see where a couple of the senators are sitting. And republican senators, right . Even senator collins of maine who is reluctant. And corker. Yeah. Neil she said dont lower the top rate. She just said in the final tax bill. They made other concessions for her. Right. But the republicans are trying to get doug jones. Corker was the only no vote. He still sounds like a no vote because he seems to be insisting these allowances have only made the debt issue a bigger issue. Hey hasnt said he wont vote for it yet but does have the same reservations. Susan collins hasnt said no. Were in the weird limbo game. Neil will they get this all resolved before christmas and make a moot point of jones when he comes to washington . Its in their best interest to get this done, he hasnt said whether or not he would vote for tax reform and might not have a chance, its better not to risk it and get it done for the republicans. We know the republicans want to start the tax changes on january 1st. Have you critics saying you need to give the population a little adjustment time, not every Single Person is quite sure how this new tax program is going to affect him or her. Silly things, like apparently, there is transport subsidy that corporations used to be able to get a tax break on. They would offer, hey, if youre commuting many miles away, well subsidize the train pass, the quirky things that might make a corporation say, you know what . Were not going to subsidize that anymore, and you have Young Workers affected by it. Dramatic impact. Yes, very big impact on daily life. Neil thank you, very, very much. The president s comments he will get things done, meeting with conferies in the white house and what he has termed the biggest tax cut ever. Theres never been a bigger one. Phil gramm who helped Ronald Reagan orchestrate a pretty historic one on that. After this. Neil all right, the president a short time ago saying that his final tax cut pitch will be historic and that theyll win this because hes also looking at the biggest tax cut ever. Is that right . Is that technically right . It seems to be the reagan twin tax cuts, each one in 81, later on in 86. This guy behind that history, the former texas republican senator, phil gramm. Senator, good to have you. Thank you, neil. Neil when you hear from the president or anyone that this is the biggest tax cut ever, its not. It is substantial. Im not minimizing it, but it doesnt hold a candle to the reagan one, does it . Well, in real dollars relative to the size of the economy, i think you can make a strong argument the reagan tax cut was bigger. But i think this is an effort to do what we need today. Our problem is that we had eight years of growth at 1. 5 , whereas from the end of world war ii, until the beginning of the obama era, the economy grew by 3. 4 . What difference does that make . Well, it means that we lost 4,500 of income for every man, woman and child in america. Now, this tax cut will provide about 1 10 that amount of money in tax relief. Were not going to fix whats wrong with america by simply letting people keep more of what they earn. That always helps. But we got to get this economy growing. If we can get the economy growing at 3 or more again, we can deal with a problem that working americans have. Neil do you think this tax package not enough money. Neil do you think, senator, this tax package can help contribute to 3 growth . That built that into their osumptions. I think it can help. Im pretty confident its going to. The corporate rate has to be reduced. No company in the world wants to earn income in america or repatriate money to america because we have the highest tax rate in the world. We need a lower tax rate for small business. We need to eliminate the situation where if you make money abroad selling american goods, you get taxed twice, and we need to eliminate the death tax which destroys Small Businesses when the founder dies. I think if we can deal with those four problems and do it within the constraints of the money we have available through the budget, that were going to do a lot in getting the economy going, but if youre thinking that this tax cut is going to solve your problems by itself. Youre probably going to be disappointed. If the tax cut can get the economy growing, youll be able to solve your own problems. Thats what the debate is about. Weve gotten kind of off subject as everybody has talked about who gets what. Neil you are right about that. Let me ask but the reality of politics at the time with the first wave of the cut ins the early 80s. There were delays in the implementation that meant that people werent feeling anything and the benefits werent felt until after the 82 midterms by which time republicans lost a couple of dozen seats, and talk theyre going to delay the implementation of the new corporate rate at 21 . Its not definite but could be a 2019 event. How do you feel about that . Its political impact . Well, i think republicans lost seats in the 82 election because we had a doubledip recession before the reagan program got into effect. I think any time can you give the tax reduction earlier, its better. The problem, of course, is paying for it. Neil right. The reagan tax cuts worked dramatically, revenues went up. We were collecting more money the day reagan left than the day he came. We beat inflation. We stopped bracket creep. It was a golden age. Whether that can be replicated or not, i dont know, but i know we can beat what weve done in the last eight years by letting people keep more of what they earn and creating incentives for people to work, save and invest. When people make more money, they solve their own problems, and thats what this tax cuts about. Wages and growth. Neil phil gramm, good seeing you again, thank you very, very much. Good seeing you, neil. Neil instrumental in the last generational push to lower taxes for everybody, investment related taxes. That was then, this is now. So far, donald trump insisting this will happen, and maybe signed, sealed and delivered by christmas. The flipside of this happening and the growth it could likely spur is that the Federal Reserve is paying attention. Were probably just about 15, 20 minutes away from a rate hike and more that could follow because the economy is doing this well. After this. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. Wifiso if you cant live without it. T it. Why arent you using this guy . It makes your wifi awesomely fast. No. Still nope. Now were talking it gets you wifi here, here, and here. It even lets you take a time out. No no yes yes, indeed. Amazing speed, coverage and control. All with an xfi gateway. Find your awesome, and change the way you wifi. Neil all right, the positive to the markets are taxes are going to be cut. Theyre still convinced that despite the haranguing back and forth and do i like this, not like this, and the narrow margin if it gets dragged into january, which they feel it will not happen. They like them. The flip side of the oomph from the economy as a result of the tax cuts, the Federal Reserve is wrapping up a twoday meeting that could result in another quarter point hike in rates. I think its the fourth or fifth in this cycle and more to come, right . Yeah, and its gradual. And lets be clear, the jerome powell, the new fed chair whos going to replace yellen next year is like a almost a carbon copy of janet yellen. Neil kind of like her, very measured. Very measured but easy money. If they put someone like kevin warsh, former investment banker, the gradual raising of rates would have been less gradual. They would have raised rates a lot sooner because of the fears that ben stein mentioned on your saturday show, basically inflation, and you know, if you think about it, you know, there is a potential case for inflation particularly on financial instruments. Lets put it to you this way. The personal income side of this tax plan is horrendous and probably a net negative for the economy, if you think about whos getting whacked and how middleclass people, real middleclass people in hightax states get crushed in this thing. On the corporate side, you do have an expectation of inflation of Financial Assets. Neil so stimulative enough for them to speed up the hike . Think about it, you have it 21 or 22 corporate cut on the tax side. You have a degree of Financial Assets. If you had a different fed chair in there, a more hawkish one, the rates would go up faster. Powell is not. The market is seeing this as, you know, by the way, stocks outperform, generally outperform bonds in a higher inflationary environment, but you know, inflation is something they think investors have to take a look at. It is something you have to put into couch, ben stein laid it out pretty much. One thing about inflation is i dont think were going to get inflation because of the personal side of this thing is deflationary. They are going to be taking neil they always say theyre way behind the curve in terms of the historical curve that rates should be higher by the historical average, so even a percent or 1. 25 and 1. 5 , historical norm would have you closer to 2. 5 to 3, right . We had a financial crisis, government forcing homes and making incentives for people to buy homes which werent very good, but the fed kept Interest Rates historically low right before the crisis and some of that low Interest Rates fuels financial speculation, and thats what ben stein was talking about, about keeping rates low and have you inflation on Financial Assets that at some point blows up. And you know neil theres a whole generation, charlie, that doesnt even know or remember inflation. Look at young people we work with who just said neil, my mortgage just hit 4 , and i feel i missed the boat. 4 . Theyve had other things to worry about. They came of age during the financial crisis, no fun in terms of wage growth. The kids today have to deal with lousy wage growth. Neil theyre not prepared to what was the norm with the Energy Crisis and some of the stuff we grew up on and thats going to be a big hit. Well, you know, heres the thing, they dealt with deflation, which is not a fun thing. Neil kind thing you said about our millennials, kat timpf, im a big fan of kat. Neil did you feel the pain what shes worried about . Yes, better her pain than mine. Neil shes lovely. Shes in the holiday spirit. Heres the thing, these kids today get a little deflation, think of all the stuff we had to go through. Bell bottoms. Neil yeah, walking to school uphill, both ways. Sure. Hitchhiking. Neil yeah. Bad pot. Neil sure. [ laughter ] no one knew what saturated fats were. Those were the days weve got a lot more coming up including the crucial fed decision. It gets better, i promise. After this. And i can do it with whats already within me. Because my body can still make its own insulin. And onceweekly trulicity activates my body to release it. Trulicity is not insulin. It comes in a onceweekly, truly easytouse pen. It works 24 7, and you dont have to see or handle a needle. Trulicity is a onceweekly injectable medicine to improve blood sugar in adults with type 2 diabetes when used with diet and exercise. It should not be the first medicine to treat diabetes or for people with type 1 diabetes or diabetic ketoacidosis. Do not take trulicity if you have a personal or Family History of medullary thyroid cancer, if you have multiple endocrine neoplasia syndrome type 2, or if youre allergic to trulicity. Stop trulicity and call your doctor right away if you have a lump or swelling in your neck, severe stomach pain, or symptoms like itching, rash, or trouble breathing. For low blood sugar. Common side effects include nausea, diarrhea, vomiting, decreased appetite, and indigestion. Some side effects can lead to dehydration, which may worsen kidney problems. I choose onceweekly trulicity to activate my within. If you need help lowering your a1c and blood sugar, activate your within. Ask your doctor about onceweekly trulicity. Neil man, what it rains it pours. We got the fed decision. Thats a matter of moments. The president s tax remarks. Theyre slated for 3 00 p. M. From the white house. He will make the closing case on this the guy who said, woda, coulda, should isa. Predicted rye more would go down in flames. He will be my special guest on your world. What he thinks of the state of alabama politics. His first interview when all this went down. Future of the party. Dow up 95 points. We just hit 24,600. You have a very busy hour coming up, trish. Trish looking forward to your interview at 4 00 with Luther Strange. Neil thank you. Trish were seconds away from the fed decision where we expect the fed to raise rates. All this as senate and house leaders reach an agreement on tax reform. Im trish regan. Welcome, everyone, to to the intelligence report. A lot of news a of affecting your money and your taxes and money. Well find out about Interest Rates. Janet yellen will deliver her final remarks as fed chair in just about 30 minutes. So we will wait on miss yellen. President trump will make his case on tax reform later on in the hour. All of this is going to have pretty strong implications for our economy, for the stock market, for your wallet. Were starting to see possibly a bit of a shift here, if the fed raises rates alongside fiscal and monetary policy. In other words theyre going in two different directions. Adam shapiro at Federal Reserve. He has very latest what the fed has decided. Adam . Reporter as expected the Federal Reserve is raising Interest Rates by a quarter of a percentage point from 1. 125 to 1 1 2 . Two fomc members, evans and kashkari voted against the increase. The fed is keeping forecast for three rate increases in 2008 2018. The fed is raising out look of gdp to 2. 5 in 2018. That is up from 2. 1 . However in 2019, expects gdp to fall to 2. 1 n 2020 to fall to 2 . Sees no change in inflation, keeping its