Medical marijuana distributors could face an effective federal income tax rate as high as 75 . You have to go to france for that kind of a race. A law preventing drug traffickers from profiting off of their crime. So using medical marijuana is legal but not in the eyes of the federal government is not so those basic deductions for Small Business owners are used to dont apply to marijuana shops. This is one instance uncle sams needs to tax away. If they think i its a good ide, at least taxyers should get some kind of compensation. That is my two cents more. That is it for tonights the willis report. Thank you for joining us. Good evening, everybody, i am lori rothman in for lou dobbs tonight. Wwere four days away from spending cuts known as the sequester from kicking in. President obama predicting armageddon but still not negotiating with congress. Still looking to raise taxes and on the campaign trail instead of working toward a negotiated solution. President obama reiterating his stance taxes must go up on the socalled rich while speaking to the National Governors association meeting. Else and republicans to adopt the same approach to tax reform as Speaker John Boehner championed a few months ago. Under our concept of tax reform, nobodys rates would go up, but we would be able to reduce the deficit by making tough, smart spending cuts and getting rid of wasteful tax loopholes that benefit the well off and the wellconnected lori but didnt our taxes already go off on all of us, not just higher income earners . Two months ago the fiscal cliff resolution eliminated the payroll tax holiday. Speaker john boehner today telling the president he already got his tax hike and telling Senate Democrats the house is not moving until the chamber passes some sort of a plan. The president proposed the sequester, yet he is far more interested in holding Campaign Rallies that he is merging the Senate Democrats passing a plan. The house has acted twice, we shouldnt have to ask a third time before the Senate Begins to do their work. Lori the president saying now is the time to lead even though lawmakers have had the opportunity to avoid the sequester for nearly two years. We have to do some governing. And certainly what we cant do is keep careening from manufactured crisis to manufactured crisis. The American People have worked rd and long to give themselves out of one crisis, they dont need us creating another one. Lori by the way, manufactured crisis at least this time originated in the white house. The president s idea of sequestration. The president is heading back out tomorrow. The obama cabinet maintaining the forceful obligation of sequester cuts begin today. Janet napolitano suggested our nations security is at risk while good thing she is not trying to scare americans. Fox news chief White House Correspondent ed henry has an update. With just four days to go commit white house ratcheted up the campaign on the sequester. With officials all but saying a terror attack could be more likely. The nations borders will be less secure and the government may have a harder time reacting to a national disaster. People dont want to be less safe, they dont want to be less secure, they want to think we are securing the borders, we were forced in immigration law, if there is a disaster there can be an effective response. Asked of the nation will be less safe, Homeland Security secretary Janet Napolitano seemed to hedge with yet more important consequences like longer wait times at cruise terminals. She said security will be threatened. Will do it time to be less safe after sequester in your opinion . I dont think we can maintain the same level of security at all places around the country with sequester as without sequester. Moments earlier in the white house driveway, republican bobby jindal charged mr. Obama is scaring the public. Now is the time to cut spending. It can be done without criticizing federal services. The president has to stop trying to scare people, stop trying to scare states. They had a look at statebystate cuts. Time to the National Governors Associations Annual bipartisan visit. Teachers and educators will be laid off. Tens of thousands of parents will have to deal with finding child care for theyre children. Hundreds of thousands of americans will lose access to. Continues to warn about huge delays coming at airports across the country. There has step be some kind of furlough. Air traffic control, air traffic controllers, and that, then, will also begin to curtail or eliminate the opportunity for them to guide planes in and out of airports. Reporter the latest salvos, as the president s credibility in the debate is being questioned by Journalist Bob Woodward wrote a book on the 2011 budget battle and charged this weekend mr. Obama is rewriting history saying, so when the president asks that a substitute for the sequester include not just spending cuts but also new revenue, he is moving the goal post, a charge hotly disputed by the white house. First of all, the white house and the democrats are insisting on revenues as part of the trigger mechanism. Republicans refused. Therefore sequester was the evidence that was chosen. Reporter that is an issue republicans will not budge on. The president s as we have to have another tax increase in order to avoid the sequester. Well, mr. President , you got your tax increase. Its time to cut spending here in washington. Reporter he made similar vows during the fiscal cliff fight and conservatives are now warning, if the case again he will be pushed out. I dont quite honestly believe that the speaker would be speaker if that happens. I think he would lose his speakership. Reporter meanwhile secretary impala, pushed back on republicans by saying she was not trying to scare anyone. She insists she is just trying to inform the public about the possibility of sequester which is becoming more and more real everyday. Lori it sounds like scare tactics to me. Probably most of our viewers as well. There certainly laying an allout. No doubt. Indeed. You will continue throughout york. New markets. The week opened with a sharp selloff. The dow down 216 points at the close. The s p down about 28. Almost 4 billion shares traded. Tech stocks especially weak. Apologue big losers. Cool, around 800 per share. In the Financial Sector another area of glaring weakness today. Bank of america and j. P. Morgan leading that group lower. Bank of america off 0. 41. All recovering, up 13. 80 per ounce. Oil virtually unchanged. Fell today in the bond market. Dropping to just under 2 . A flight to safety. Snap up u. S. Government debt. All eyes on ben bernanke, speaking of interest rates. A semiannual testimony in front of the Senate Banking committee tomorrow joining me now, alec for the markets and the economy. Seniorconomist. great to see you again. Before we get all of that, i know you were a speaker at the big governors confab this weekend, and sequestration was also a huge topic of conversation. We know what the president releasing a statebystate impact of the sequestration, hes trying to get the governors on board with his fight to promote his cause. How the governors feel about that . Was your impression participating in the conference this weekend . Everyone is concerned, and the way that i lay it out, we really dont know. I mean, you think it is much ado about nothing or another moment. And you would think that it is 44 billion, they say its 85, but thats actually budget authority. And you would think in that three and a half trillion dollar budget that we could do that without bringing about armageddon. I mean it just seems it seems but it is also understandable because twothirds of the budget is offlimits, the part that is problematic is off limits. Lori that raises the question about the grand bargain. We know we get the next gdp report for the Fourth Quarter of last year tomorrow. The first pick was a negative reid. What do you think, sequestration if it actually does happen, as many are expecting it to, actually lead to the further economic arrest . I dont think it will. In the Fourth Quarter, that drop will probably be revised and the laws of moderate positive territory. A big reason behind tha, 22 drop in defense spending. In the Fourth Quarter reflect sequester was going to take place in january 1st. A lot of cuts may have already been made. It really bothers me when i here all these dire consequences. I dont know. No one really knows how bad or how much of a nonevent it will be. Politics as usual, many would say. We feel fairly certain that it is going to take effect and we are going to go to march 1st with the deal if there is any deal at all it will be to put it off further down the road. Lori and we have seen that happen Many Committee time before. And start to talk over you. Proven to be a very stubborn resistance level. What is going on . We did not have a great quarter and earnings. It was okay. Earnings did rise on a sequential basis, but we seem to be losing some momentum. What really turned the market down today was when we get some disappointing news from italy which seems like the italians, not surprising to me, are not very much in favor of all of the austerity, looking for better days. Lobbying for and to come back into power, but there is no real decision in italy from the elections. And this just brings europes problems back to the forefront. That does not seem to be anybody in the developed world right now that has a good, sound Economic Policy except maybe the germans. Lori a reminder, right, that even though we have not had europe and the top of the newspapers and headlines in the last couple of months, we have been so absorbent our fiscal mess, europe is still out there, incredibly insolvent, a huge trouble spot, not to mention the rest of the world is as lackluster. The flight to u. S. Treasurys. My view on europe is that they have not done one thing right since the street protest back in 2010. Not one iota close to the solving the financial crisis that we were in back then. They claim to be. We are going to get a banking union, fiscal union, but unless it is run by the germans it is not going to work. It is r by the french and italians. I dont think people are going to want to be racing to invest money. They are not any closer today in solving their problems than they were at the start of this crisis. Lori so easy to forget about that. Interesting that the dollar was strong today. Another Pressure Point for the equities market. But there is growing talk and concern of a currency or committing from japan. Do you think this is a real threat . Japan lowering the value of the yen to make exports more desirable and a better deal than other countries that folw suit creating sort of a ripple effect, this sort of currency were fear that is getting more traction. What is the reality of that happening telemark . It has been happening. The United States, our currency strength, when there is uncertainty in the world there is a flight to quality, fled to safety. In some ways we are the cleanest dirtiest deck cleaners to dirty shirt and the closet. That benefits us, but so easy to solve a somebody would just read it be brave enough to put in sound economic policies, currency will strengthen. That is better for your currency to strengthen. The standard of living of your citizens is improving as capital flow into those economies. It is not a sign of success for your currency to be depreciating. Lori they have had this lackluster growth for so long. U. S. Is with our modern monetary policy, and argue to be said. The have to leave it there. Thank you. But morehead. We will continue our discussion on this cluster and the impact on the market. Congressman from colorado next. To gun contr battle focused on new laws to limit the second amendment, yet the current laws still are not being enforced. [ male announcer ] how could switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the Aerospace Industry in the u. S. . At t. Rowe price, we understand the connections of a complex, global economy. Its just one reason over 75 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospectus or summary prospectus with investment information, risks, fees and expees to read and consider carefully before investing. I work for 47 different companies. Well, technically i work for one. 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Lori colorado congressman today introducing legislation to allow the department of defense to implement the 500 billion in cuts more strategically. Joining us, congressman kaufman, a member of the Armed Services committee and an iraqi war veteran. Welcome. In queue for having me. Lori right to have you with this. Youre basically youre looking for more flexibility on where to make cuts that will be in europe you the best interest in National Security. Absolutely. First of all, the way that the cuts are laid out is across the board, indiscriminate. Gives the same way to a program that is vital to National Security as one that probably should have been done away with a long time ago. And so that is the problem. And so what i am putting forward is a proposal that says we can do this if we do it right by taking things that are of lesser importance of that should have gone by the wayside along time ago in preserving the priorities that are vital to our National Security. Lori you would think the president would have the discretion to determine where the cuts it should go and have the taxpayers and is best interest. There we have heard him over the weekend and today on this national to work really ung scare tactics, talking about teachers and the country be more susceptible the terror attacks it is almost like politics versus real savvy business decisions. Am i reading this wrong . And disappointing the Obama Administration because i think that they ought to beoving forward and want the flexibility to protect the priorities of government and to say, you know, we are going to take on the waste, take on the bureaucratic fat, take on programs of lesser significance to protect a perris of government. Theyre not doing that because they want to make a point that without revenue this is going to occur is going to be painful to the American People, and that is wrong, particularly as commanderinchief were talking about National Security, the flexibility to make these cuts without compromising National Security. I just before only to do that. But i think the administration ought to becoming a with other ways to do that, if not my way. Lori to be clear, we are not even talking about pure cuts. We are talking about a decrease in the rate of increase in federal spending. And i want to just read to you from senator tom coburn of obama. Youre looking at this letter he sent. And now youre talking about defense cuts, but alighting questionable spending in urban areas security initiatives such as drones, underwater robots, snow, machines, security upgrades, spring training stadium, color printers, militarystyle bearcat vehicles used to protect pumpkin festivals. There is so much fat, so many easy cats. You even layer of some of your own. Lori i really do. Some are, i think, kind of obvious in terms of lets do crew rotation where instead of taking our ships from the theater of operations, back to home ports in the United States to change crews. Lets get them out there. Thats why the cruise up there an meet them imports of theater operations. Very significant savings involved in that. We have 79,000 troops still in europe. The cold war has been over with since 1991. Do we really need that type of presence in europe when our european allies are spending less than 2 on theyre defense . Their economy. We are at over four and a half . All the things that we can look at. Lori youre talking about getting rid of the draft at selected services which is 204 million. Thats not a lot of money, and actually, that is so small its not in my proposal. Thats the separate proposal. I think that is something that is by the wayside, utilities over with for a long time. Lori thank you. We will followup with you, thats for sure. Thank you for having me. Lori entertainment news. Of course, the Academy Awards are last night, and they were the highest rated since 2010. Seth mcfarlane hosted the show with several surprise moments and a few widely expected wednesday. Perhaps the most talkedabout moment was when Jack Nicholson came up to present best picture and instead handed off the announcement of first la michelle obama. That appearance that makes reviews with critics accusing the first lady of using the military personnel be under as props. As for the actual auster, best picture, daniel daylewis won for best actor. Jennifer lawrence took best actress. Best director, another surprise, life of pie. Oscar weekend. Acquired one, believe it or not. The universal comedy identity thief returned to the top spot earning 14 million. Some entertainment debuted in second place at 13 million. And the wineskin company escape from planet earth came in third with 11 million. Up next, controversial islamic leader has a plan to decrease the shooting violence in chicago. In new evidence shows a rise in false gun applications under the current administration. You might be stunned to learn what happens. Thats all next. The capital one cash rewards card gives you 1 cash back on all purchases, plus a 50 annual bonus. And everyone but her likes 50 more cash, but i have an idea. Do you want a princess dress . Yes. Cupcakes . Yes. Do you want an etchasketch . Yes do you want 50 more cash . No. You got talent. [ male announcer ] the capital one cash rewards card gives you 1 cash back on every purchase plus a 50 annual bonus on the cash you earn. Its the card for people who like more cash. Whats in your wallet . I usually say that. Lori gun makers increasingly pushing back against state efforts to restrict the second amendment. Warning, it may leave the state if lawmakers move forward with the new assault weapons ban which would make its iconic nine mm pestered illegal. The parental leaves they would take 300 jobs with them. Meanwhile gun parts manufacturer is threatening to leave colorado if that state passes a law limiting the capacity of ammunition magazines. President obama has traveled the country to press his case for tougher gun control laws. Recent studies show the administration is not enforcing any gun laws that are already on the books. Fox news correspondent is with our report. Universal background checks are universally supported, just about. By gun owners. In a new national campaign, those statistics show many who do are rarely punished. The first question on the 4473 form is are you the actual buyer of a firearm. Accordi to Justice Department data in 20,106,000,000 americans applied to buy a gun. Less than 2 or 76,000 were denied. Of those, police investigated only 4,000, and even fewer, just 44, were prosecuted. Only 13 were punished for lying or buying a gun illegally. The prosecution of people lying on forms as a priority for the president , then all he has to do is say, i want my federal lawenforcement officials to prosecute these kinds of cases. Under president obama prosecution for illegally pledged to possessing a gun are down 14 from 5 years ago, down 29 for making a false statement and buying one. Administration officials argue prosecutors like money. Gun cases like jury appeal, and penalties like pain. For out of ten straw purchasers really suffer no meaningful consequence for what they did. Data shows onethird of those charged with gun crimes serve no jail time at all. Those who do serve only 14 years of a possible 10year sentence for lying or illegally possessing a firearm. Obviously there is a different level of priority given to these guys of crimes. In this administration. The statistics are damaging to lawmakers who want morgan controls. Twentythree House Republicans asked the president why he wanted new gun laws while failing to enforce those already on the books. It does appear, however, that universal background checks for all gun purchases at gun shows and private sales will pass on capitol hill. Lori good points all. Thank you. Well, the nation of islam leader raising eyebrows with his latest comments on chicago gangs. Telling thousands of followers of the weekend that he was planning to reach out to the citys gang leaders to help protect the nation of islam. The 79 yearold reasons that those involved in street gangs are natural soldiers that can be taught what this socalled what he calls rather the science of war. Chicago mayor push back against the remarks today saying chicagos gains are not the problem teeseven the problem, not the solution to improving public safety. A liberal thinktank closely aligned with the white house is being saved after the explosion of gun violence. The center for American Progress say this citys increase in Violent Crime is linked to low wages, and that the way to reduce violence is by raising the minimum wage. The same organization that works with a former playboy ceo said just last month the chicagos murder rate could be blamed in part on climate change. Of course. Chicago residents most blamed the citys violence on gangs, like a parental violence and more police officers. The secretary of state is overseas. Emergency across the nation. Potentially deadly blizzards pared down. Details ahead. The anti taxman. Kansas governor stan brown backcourtman to eliminate taxes in his state. He joins us here we know a place where tossing and turning have given way to sleeping. Where sleepless nights yield to restful sleep. And lunesta® eszopiclone can help you get there. Like it has for so many people before. When taking lunesta, dont drive or operate machinery until you feel fully awake. Walking, eating, driving, or engaging in other activities while asleep, without remembering it the next day, have been reported. Lunesta should not be taken together with alcohol. Abnormal behaviors may include aggressiveness, agitation, hallucinations, or confusion. In depressed patients, worsening of depression, including risk of suicide, may occur. Alcohol may increase these risks. Allergic reactions such as tongue or throat swelling occur rarely and may be fatal. Side effects may include unpleasant taste, headache, dizziness, and morning drowsiness. Ask your doctor if lunesta is right for you. Then find out how to get lunesta for as low as fifteen dollars at lunesta. Com. Theres a land of restful sleep. We can help you go there on the wings of lunesta. Lori agreed to attend an International Conference in rome that is supposed to be the highlight of secretary of state john kerrys first overseas trip. Opposition leaders have threatened to boycott the session over what they see as an action by other nations against syrian president s. Earlier today, urging the Syrian Opposition to reconsider, insisting that more help is on the way. Perhaps trying to make up for his first gap as secretary of state last week when he flub the name of a key u. S. Ally on the war and terror. Have a listen. The brave employees of state in usa ibm the Diplomatic Security personnel who protect the civilians serving as overseas work in some of the most dangerous places on earth. This support Democratic Institutions in khuzistan in georgia. Lori heres the thing. Not a country. Secretary was referring to the Central Asian company of kyrgyzstan but confused it with its much larger neighbor to the north. Im going to mess it up to. Kazakhstan, i think. As bad as the secretary. But even government, and im here. Meanwhile combat team tea party backed two months into his first term but already getting a repeat of reputation or being outspoken. And establish a republican. Listened with some of the weekend. Career politicians in both parties who have gotten us into this mess. I think president obama is the most radical president we have ever seen. But i think an awful lot of republicans fail to stand for principle and contributed to getting us in this mess. Lori comments like that help the senator and the nickname crews missile. Critics lashing out at louisianas Health Department after it ordered the homeless shelter destroyed 8,000 worth of deer meat. Reportedly nothing wrong with the meat. Actually pretty healthy. Someone complained last month. Forgiving to featherbedding debt service of venice at homeless shelters. Instead of returning the need Health Officials ordered the mission to put the meat in the garbage and then pour bleach over. Fox scoring our ratings win. The daytona 500. The first driver. Jimmy johnson ended a blessing for a second time, but the most dramatic is actually on saturday. Went airborne on the final lap of the secondtier race crashing. Large pieces blew into the fans injuring more than 30 people. Cursing and getting physical with a 14 yearold girl after she and her sister plus tail. Theyre released this video of the rabbit grabbing the girl by her arm and neck. Before swearing and her. The case has no meeit and that the video shows a family of misbehaving guests deliberately provoking a character from malicious amusement. Just last month another family filed a lawsuit you may recall in qe2 of accusing that same character of refusing to hug or hold hands with an African American visitor. Up next to my kansas governor back on his plan says frees up personal income taxes. Lori Hurricane Force winds hitting the nations midsection tonight. This is the second winter storm to pound the recent region in less than a week. The storm tracking the north and east across west texas, obama, arkansas, kansas, and missouri. Record wind gusts reported there. Seventyfive milesperhour and up to a foot and a half of snow on the ground. That is the most in more than a century. Obama also declared a state of emergency for 56 counties. No fun. Lets check in with our ateam tonight. We are joined by pulitzer prizewinning investigative journalist judith miller, a pulitzer prizewinning New York Post columnist Michael Goodwin and National Review roving correspondent kevin williamson, also the author of the end of year and its going to be awesome. Pretend you of. I will begin with you, the speaker of the house rarding the president s comments domestic scare tactics. While we must deal to avoid sequestration because dire straits away as. Do you i mean, the speaker of the house saying, you guys got your tax cut. Democrats got the tax increase rather. We are done. Move on. Well, they may think they are done, but the fact of the matter is as long as the American People tend to blame republicans for the sequester and the cuts theyre going to happen it is perfectly understandable that he should try and humanize this problem by pointing out all of the federal workers and others who will lose their jobs. Good politics. I completely understand. Lori are people still blaming republicans for the sequestration . Just tell us 24 hours has there been a bitter backlash to the president and the democrats using these care tactics, warning that we are more susceptible to terror, a teacher layoffs, flight delays promoters your take . I do think that the president is clearly exaggerating. He said the cabinet have to exaggerate. It is distracting me as bizarre that he can do this with a straight face. The idea that you have to have all of in a sense the government will collapse if we lose over 2 percent of the revenue. It is simply not credible. All those dire things would come from this cut, which would be spread out over seven or eight months at least. The second point is, you know, when the speaker says, you know, you got your tax increase and youre not going to hit another one, two ways to look at that. One is, he is basically taking the president at his word. I want a balanced plan. He sang, you get your taxes. Now its time for the cats. The second thing, i think if he went along with another tax increase after having done it in january he probably would not be speaker. Lori thats it. Kevin, way in. Politics as usual . What are we looking at . Why not just let it happen and move on . Its nothing. People talk about there public is being blamed for the sequestered. Some people might credit to the republicans. It looks like a pretty good policy. I would like to see this request to move through. If you takthe case the American People, we put a few thousand to work. Lori you can say that. The health and the economy. At first it does look good. Thecontraction climate, pace of growth for the u. S. Economy. Most economists guys are predicting a revision, an upward revisi which could be good, but this economy is nothing to be excited dissatisfied. Its not. And rather than concentrate on that which wld be, i think, an effective republican tactic, they are walking into a trap. This is going to hurt the economy. The republicans are going to be blamed. I dont think these people are parasites. Air controllers, cancer researchers, first responders, theyre not parasites. People were going to lose this. Lori if theyre not parasites lets put their wages to a market test. Thats why they resist. The president is using the big picture cuts saying, again, we are more susceptible to the parent teachers were laid off when really there are he has discretion to cut, for example, secretaries to the, you know, the headline markers, the teachers. There is a lot of fat in there. Senator coburn, snow, machines. You must allow be for tax increases. Is not transparent to enough people. The second point i would make, just think about what the president was saying. We can never cut a penny from the federal government. So we have a 16 trillion debt, a trillion dollar year deficit, and he is saying, we can at cat. We have to tax our way of this. If all that was going to work and create jobs it would have done it by now. Hes basically embracing a failed policy. Lori stick around. This is just getting started. We have to take a quick break. With the spark miles card from capital one, bjorn earns unlimited rewas for his Small Business take theseags to room 12 please. [ garth ] bjors small busiss earns double miles on every purchase every day. Produce delivery. [ bjorn ] just put it on my spark card. [ garth why settle for less . Ahh, oh [ garth ] great businesses deserve limited reward heres your wake up call. [ male announcer ] get the spark Business Card fromapital one and earn unlimited rewards. Choose double miles or 2 cash back on every purchase every day. Whats in your wallet . [ crows ] now wheres the Snooze Button . Lori my next guest has lowered kansas personal incometax rate with a goal of eliminating the tax altogether. Now receiving press back from state lawmakers over proposals to eliminate deductions from owners. Joining in the telephone to discuss kansas is taxed as well as the blizzard currently slimming the region, kansas governor sam brownback. Welcome to you. Great to have you. I know that the weather is getting rough out there. You extended the state a disaster emergency. What is the status . This up continues to come down. The slowermoving, big system slammed into north texas and oklahoma, and it is sitting as now. We are getting some moisture finally out of the drought. We could have colleges of snow. Hopefully we wont get many problems out of that, but we will seek. Lori what is the worstcase scenario . This is quite an unusual event for kan. , school closes, or closures. We have all sorts of School Closures taking place. Of course by the kids that is just fine. The more the better. Our biggest concern really is that people have traffic fatalities, nothing will to do with it. They get stranded. Does the things that we really watch out for. Fortunately last know we did not have any fatalities. We have already had one with this one. Lori people are well aware. Unfortunately the skiing is not so great in kansas, but he made the point about the moisture. 110 asking about your program and how the agenda is being received. Youre going about it gradually. Always the feedback . Feedback was good. We have a red state model going. There are a number of us going at this. Nebraska, louisiana, texas, obviously already there. You offset that compared to what that big blue stays their raising their tax rates. We saw a Record Number of new business filings in kansas last year. We are going to keep pushing this because i think this is the real growth agenda and growth is 75 percent of the equation. You have to get growth happening that is what were pushing, and we are starting to see some of it happening. Lori keyneses already has the tenth lowest unemployment in the country. How many new jobs in the private sector do you think eliminating the income tax would create . Overtime you would be in the hundreds of thousands periods to give you a quick number, last decade being the highest tax state in this region, we lost jobs over the whole decade from 20002010. We had a net loss of private sector jobs. Every surrounding state but nebraska. We give people moving in from california, but we lose them to texas. When trying to do is get the overall growth happening. We are starting to see some of it. But i think as we get this tax rate on down and then be able to get that message out, we are going to see some accelerated growth. Lori on the downside, you do have some angry colleagues, both republicans and democrats saying that the proposed elimination of deductions for propertytax and mortgage interest benefits, and you have to of said, you know, losing the income tax somehow. There are a lot of other lawmakers are not comfortable with the plan. It has some difficulties because were basically trying to move to a flat tax first before writing the rates on down. We went to zero immediately on all else the and sub as ince. Zero taxes on any el al see yourself as income, and that is what is really ejecting the growth. You have to get there some way, and current, when i started this job 40 of the State Government receipts, the state income receipts, not federal transfers, but stay receipts of the state level or incometax. So you cant get their overnight or all of once, and here is a plan for how we can move forward , keep the sales tax word is right now and also that is a problem. Those tax rates as opposed to five, it is not as used change. It is enough for people here about it that theyre going to rein in their extra cash that the mayor wanted brought to the economy. It has an impact. I tell you, if you could get that income tax rate down and sales tax are paid by people in state and devastate, paid by people participating in the economy anyway. And it is a much more stable form of funding for government and the income tax, which is highly erratic. We think we got a good plan to move forward with it and are already seeing some good benefits from it. It is not without some tradeoff in difficulties, but i would like to do that and g grow jobs rather than seeing the decline and the 30year decne we have had in the percentage of our population, our state drinking as a state. We were 27, we are at 303rd most populous, as the 305th. We have to change that trend line lori good luck to you and your agenda, of course. Most importantly, good luck weathering the storm. 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And verizons got more fast lte coverage than all other networks combined. Its better. Yes. Oh, why didnt you just say that . Huh what is he doing . Lori back with the a team, judy miller, Michael Goodwin, National Review correspondent kevin williamson. What do you think of president going out on these Campaign Style events versus meeting with congress. Yoke he wants a i dont think he wants a deal. If government workers are unionized, they are a very important source of Campaign Donation to democrats, you cut salaries, you cut positions you take money out of Democratic Campaign pockets. I dont think he wants a deal. Lori i have to ask you about farrakhan. You have interviewed him. Chicago murder capital of the world, a good solution . I just came back from chicago i did a piece on the gangs and murder there. More than 500 murders a year. Lori insane solution . A solution nonetheless. If you are a crazy person. The idea that a gang banger is a sold o soldier way is insa. The problem with chicago is, chicago policing. The police in new york have done a much better job under the same is, circumstances. The read that police are not taking guns and locking up kids with guns they are using