After steve bannon declares mcconnell enemy number one. At least as far as im concerned, closer than ever but before. Dana we will discuss the impact with Senate Majority leader live on fox news sunday. And. He called for people here today to express his condolences the best way he could. Dana the white house chief of staff weighs in on the president response to the death of former u. S. Soldiers. We will discuss with the panel how the issue has become political this week. Plus. I was the first Republican Press secretary. Dana Sarah Sanders unbalancing life at home and at the white house. All right now on fox news sunday. And hello again from fox news in washington. President trump strive to overhaul the nations tax code cleared a major hurdle this week when the Senate Approved its budget blueprint. The house is poised to adopt it next week. In an oped in the usa today. President trump writes revising our tax code is not just a policy discussion, it is a moral one, because were not talking about the governments when money, we are talking about your money, your hard work. We begin here in washington with the white house budget director Mick Mulvaney. Welcome back to fox news sunday. Director mulvaney thank you for having me. Dana you are my first guest on my first ever fox news sunday. Director mulvaney im trying to screw up too bad. Dana me too. You must feel better than you did a week ago about tax form. Director mulvaney very much so. We are hearing out of the house may go ahead and either take the Senate Amendments or move very quickly to accept them and we may save as many as ten or 12 legislative days. Its a big deal. Sounds like not much when you hear the end of october, but in the congressional calendar thats a long time and it really does buy us some more time then more opportunity to get this done before the end of the year. Dana especially because treasury secretary mnuchin promised the president would have a bill by december comedy think its realistic . Director mulvaney i absolutely do. If the house really does take the Senate Budget when they come back on i think its tuesday this week, actually moves the ball a lot further a lot quicker towards that goal in. Dana another thing secretary mnuchin fet is the only thing is the Corporate Tax rate, which in your proposal would be 20 coming down from 35 . If you had to negotiate on that number, would you . Director mulvaney to priorities from the very beginning of the president have been that middle taxpayers will pay less and it will be simple for them. Thats number one. Number two, that the Corporate Tax rate will come down. We wanted 15 , the house kept pushing and pushing and pushing, talking about 20, would love to get back on the 15 as we continue the negotiation. Those two things are sort of the foundation of a tax plan for the president. I dont think the house really wants to negotiate those very much. Dana i would agree. There is some possible concerns. Lets listen to House Freedom caucus determined meadows, because theres a little bit of a possibility for fourth bracket for high tax earners. With listening. Im against having a top rate. If were going to do that then we need to just admit that at times that having a top rate for those that earn a Million Dollars or more is maybe a political reality, but it doesnt necessarily boost the economy. Dana right now with their brackets, the plan would take it to three, but in order to do the pay for it is a possibility a fourth tax bracket. Director mulvaney people forget we actually have four rates now, zero, 12, 45. Is a lot of discussion on the hill of adding a top bracket. We are agnostic about that. Its not a big piece for us. If the house needs to add it to pass a great tax reform, thats great, if they dont, thats great too. Its not what is driving us for the white house. Dana as i understand it they believe that taxes and higher taxes to press Economic Growth and investment. If it keeps creeping up will it depress what you want to do . Director mulvaney our opinion of that has not changed. We want the very best tax package that can actually pass, and if theres things the house has to do with the senate has to do to get that last boulder to to get it across the finish line thats up to them. That fifth bracket is not a priority for the white house, we are not pushing it, we dont necessarily want it but something in the greater scheme of things if they told us us we have to take it we will go with it. Dana if that happened do you think that senator schumer and warren, who have complained that the tax plan doesnt do enough to tax the rich, do you think that they could come on board . Director mulvaney no chance. Ive asked a couple democrats if they would ever vote to lower the Corporate Tax rate, and they said no. Its bizarre since they were reported, themselves, those in the past. Some democratsupported bills that schumer has talked about that actually lower the Corporate Tax rate. President obama talked about lowering the Corporate Tax rate. Its almost since its president Trumps Administration and its a republican plan, now there are against it. Dana they are in just say no mode. I do have a question, wyoming and colorado, not high tax states. Ive been trying to understand the issue about the state and local Tax Deductions. This it seems like it could be a big Sticking Point with the big revenue raiser in order to pay for the tax cuts, which i know you care about, is about 40 House Republicans who were present taxpayers and those high tax states like new york, california, new england. They are saying this is a deal breaker for them. Director mulvaney i hope its not. At foundation here one of the things where driving at is fairness. And if you live in wyoming and i live in new york and we make the same amount of money on house was worth the same amount of money and house, cars worth the same amount of money, shouldnt we pay the same amount of federal tax . I think its as, the president think that yes, most people think that we should pay the same amount. Right now if you live in wyoming, all other things being equal, you pay more tax than someone who lives in new york. Thats just not fair and its something we really are hoping to change and we hope the house and senate can accept that. Dana some are saying that those taxpayers in those states would actually end up disproportionately paying for the tax cut bill if this stays in there. Director mulvaney you have to be careful there because one of the reasons its so hard to do tax reform and we havent done tax reform on the scale since the 1980s, we can always go in and look at one provision and say this is bad for this person, i cant vote for. You have to look at it holistically, you have to look at the entire impact of the tax plan. I hurt Governor Cuomo in new york states tax plan would raise taxes of every person in new york. Thats just false. When you look at it writ large, for example doubling the standard deductions, most people arent going to be interested in it because they will not take it. Dana they wont have to. Director mulvaney thats exactly right. Dana 36 years ago today that u. S. National debt cost 1 trillion for the first time. Today its 20 trillion. I know you came to washington, d. C. , because he wanted to combat overspending. Weve talked about it in january after confirmation hearing. A trip down memory lane. I believe is a matter of principle the debt must be addressed to you know rather than later. I also know that fundamental changes are necessary in the way washington spends and taxes and if we were living want to help the economy. This must include changing the physical path, which is unsustainable. Part of that also means taking a hard look at government waste and ending it. Dana i know that your principles havent changed. I fully understand that politics has. Have the economics changed . Director mulvaney all that has changed is sort of the politics. What has changed is we sent 54 billion worth of Discretionary Spending reduction ideas to the house. I think the house during the day or 5 billion of it. I dont think the senate took any of it. Its very hard to lower spending in this environment. What was done now is sit back if they are crowded with balancing the budget in the 1990s . We sort of restrained the growth of government so that government revenues, tax receipts grew faster than expenditures. If thats what were trying to do. We are not abandoning fiscal restraint by any measure, i would never do that but we are sitting there and going okay, if we can slow the expenditures but increase the revenues by growing the economy. As america gets wealthier, the famous coauthor, the government actually gets wealthier too, thats how we balanced it in the 1990s, its how we will do it today, but when he tax reform to do it. Dana if you get tax reform passed and the resulting Economic Growth that you project, would you try to revisit with President Trump your concerns about the growth of entitlement spending . Director mulvaney a meeting with the president just the other day, we walked over some of the numbers. The deficit came out last week about what is driving the deficit. I actually said, look, heres where it is, heres where it isnt. Im going to come back to you again and i will want to talk to about entitlement spending. He said i will still not do it but im happy to have a conversation. Same discussion we had in the spring, i promise people i will not change social security, and i said thats fine, my job is to show you what that means. I think thats the right way to do it. If we do get this growth, you will start to see that deficit that turndown. Dana are you concerned with the Health Care Markets about confusion whether the president could support the bipartisan shortterm fix that that would hurt your ability to actually hit that 3 growth target . Director mulvaney not at all. If im surprise the democrats are all of a sudden concerned about uncertainty in the Health Care Markets when its been uncertain since the obamacare pass. Concern about rates going up when theyve been going up since the day pass. Thats the politics of the day. We were seeing the president say is i will be okay with making these payments if i get something for people in exchange. If i get something that actually helps people. Give us more ability on associated health plans, give us more ability to sell across state lines. Give us tools that actually help people and we will talk about looking at alexander murray. Dana when the president ghost they want to stay for lunch with the senators, whats the main message he wants them to walk away with . Director mulvaney tax form for certain. The one thing it doesnt get a lot of discussion in the media is the lack of progress on our nominees. I was very excited to hear mr. Mcconnell commit this week to having the senate start to work on monday and friday and even the occasional weekend. As a house member, i sort of laughed at that. Former house member. I think president obama had twice as many of his confirmations nominees in place. We need our people in place. Dana it seems the senate has done well confirming judges, but the rest of the government does need to be fulfilled. Director mulvaney done a tremendous job in judges, but we need them to start working more. Why . Because the democrats are obstructing at every turn. They are obstructing people going to get 80 or 90 votes, people who were never contentious in the first place. Its obstruction for the sake of obstruction. Dana back in their own districts. Thank you for being here, director Mick Mulvaney. Joining us down from sacramento is xavier becerra, the attorney general of california. Hes leading a coalition of 18 states and the district of columbia against the Trump Administrations efforts to end obamas payments to insurers. Everything from health care to immigration, to clean energy. Thank you for being with us today. Thanks, dana. Dana a federal court had ruled that the payments, the csrs, the subsidies for health care in payments. But they were solved unlawful because they were never appropriated by the congress. Tell me about your lawsuit and how you expect to win it given that information. A. G. Becerra that decision has been put on hold. The Obama Administration first coming out the Trump Administration are in court against that decision and we have no states joined in that effort as well. To try and keep not only that decision on hold, but permanently on hold. And to move forward with the Affordable Care act because millions of people depend on it, some 7 Million People will probably be affected if the Trump Administrations efforts to kill the cautionary subsidies that people depend on two a afford their deductibles and their copayments and insurance are taken away. Dana what is the time right for your lawsuit . Do you know when you will expect to hear anything back from the courts . A. G. Becerra we went in asking for the court to give us an emergency ruling. What the Trump Administration did last week, a little bit more than a week ago, because it was supposed to under the Current Administration take effect immediately under their order and we can afford to have that kind of uncertainty. When there are people who are daytoday depending on their health insurance. Rebecca in california, modesto, california, mid 30s. Shes a quadriplegic. She has constant visits to the doctor. She right now pays about 15 and copayments for those visits. Without those copayments being made part of the aca, her payments go up to about 105 every visit. Someone like that cannot afford to have this kind of uncertainty hanging over her. She requires that health care she depends on it. Dana given all the uncertainty we were talking about, going forward, would you personally support Something Like what senator Bernie Sanders has suggested, a medicare for all plan . A. G. Becerra absolutely. Ive been a supporter for medicare for all for the 24 years that i was in congress. This year as attorney general, i would buy for that if we had an opportunity to put that in the state of california because i think what we do is we give people thought certainty that they will be able to access a doctor or hospital. The worst thing we used to have with situations where young families wouldnt know if they should take their children to the hospital because it could lead to personal bankruptcy. That ended with the Affordable Care act. If we cant go back to those days and so absolutely when you give people access to medicare and talk to seniors who have their medicare who say keep your hands off my medicare, i think it would have the same effect on most americans if they knew they could depend on Something Like medicare for themselves as well. Dana we would have to call Mick Mulvaney back to asking how we will pay for it. A. G. Becerra it saves us money. It saves us a great deal of money. Dana maybe we can have you back and have the big debate when that becomes an issue. Let me ask you about the lawsuit you filed about dreamers and daca. Im curious, the president has asked the congress to come back to him with an actual lot instead of relying on the obama executive order for dreamers. Why not wait to see how that turns out before pushing forward on this lawsuit . A. G. Becerra again, if the Trump Administration werent putting people lives at risk, their ability to continue to go to school, to work, to provide for their family, then perhaps we can wait, but donald trump didnt wait. He decided to repeal the daca altogether and now we have to act because we cant afford to put people in this kind of limbo so we are out there to protect at least in california, more than 200,000 young people who are fighting really hard to continue to show that they belong in america. Dana you also said that you wouldnt deport them. Are they fearful for no reason at this point . A. G. Becerra if we had that kind of certainty, things would be different, but we dont. We know of dreamers who have been supported, deported for no reason with no criminal history, nothing that they particularly dead. At the same time, you dont want to put people in limbo this way, just the way were back want to lose her Affordable Care insurance because someone said dont worry, we will find another way for you to do it. She can afford that because she has a quadriplegic has to know that she can make her doctors visits. The theme dont make same thing with all the streamers in america who know america is the only home theyve ever had. We can afford to put them in limbo either and thats where were going to fight as hard as we can. I say that not just as the ag, but i think senate democrats. Dana have to make it quick, theres always lawsuits that you are filing, since 2014 the number of californians saying they support seceding from the union has grown from 20 to more than onethird. Steve bannon this week said that california is to President Trump what South Carolina was to andrew jackson. Are you comfortable with that sort of ballot language, even if its unconstitutional, would you allow it to be on the ballot . A. G. Becerra we all get to express ourselves and there certain people in california were frustrated with this administration constantly taking digs and hurting california. But i will tell you this, california is the