Cuts in 2017 so whats next for 2018 and will it help republicans ahead in heat midterm races . Welcome. We start with the u. S. And beginning the year facing two growing international issues. In iran, new deadly protests are taking place across the country. At least ten people have been killed in the ongoing demonstrations, which began last week over economic issues. President trump tweeting this morning, iran is failing at every level. Despite the terrible deal made with them by the obama administration. The great iranian people have been oppressed for many years. Theyre hungry for food and for freedom. Along with human rights, time for change. Irans president acknowledging the tweet and fledgling economy. Kim jongun ups the ante on his nuclear threat, claiming he has, quote, a Nuclear Button on his desk at the same time kim is making overtures to south korea, including a delegation to south korea for the winter olympics. Kelly cobiella is in seoul and ali is in iran for us. Kelly, ill start with you. Whats been the reaction so far to kim jonguns remarks . Reporter officials expected kim jongun to come out in his annual new dears day speech saying his country was nuclear capable. They have a working nuclear arsenal. South Korean Military officials sort of questioned that claim. They say theres no proof the North Koreans have perfected that. That said, most experts do agree after that launch in late november that north korea does now have the technology for icbms, longrage Ballistic Missiles reaching the east coast of the United States. On top of that, there was this other message from kim jongun. He vowed his country in the coming year would focus on mass production of Nuclear Warheads and Ballistic Missiles for what he said was operational deployment. Also adding that they would not be a first strike country, they would only use their Nuclear Capability as a deterrence and strike when attacked first. What about his overtures to south korea, do you think its possible we could feasibly see North Koreans competing in Olympic Games in february . Reporter well, its certainly. That is the offer kim jongun threw out today. Its something the south korean president has been pursuing practically since he got into office last summer. Hes been urging the North Koreans to take part in the olympics in february, believes that this is the only real way to assure the safety in the olympi olympics, also proposing they postpone military drills until after the games. Now with this offer out there to not only send a delegation to south korea for the olympics but to sit down with talks with south korea. This is a remarkable shift for the North Koreans. What they want, what their actual motivation is, still unclear right now. There are lots of possibilities, but the bottom line is the south koreans have said today, coming out of the south korean president s spokesperson that they welcome this proposal to talk. The major question is if they were to meet with one another, how would that affect south koreas relationship. Moving to iran. Hassan rsaid they should work together. Ali is in the capital today. Reporter weve entered the fifth day of unrest and state tv report ten people have been killed. Authorities are blaming the deaths on protesters, sunni terrorists, foreign agencies denying police have fired any shots. Police have issued warnings that demonstrations will be dealt with severely. A warning that steams have fallen on deaf ears as last night there were nationwide protests including ones here in tehran. Over the course of the last few days, the internet is being cut or dramatically soloed down. Authorities tolerance also appears to be wearing thin. Local media have announced over 300 arrests have been made so far. Its important to point out that so far the police have been handling the situation. But if the protests continue, the crackdown is likely to become much more severe. If the ba siege militia or deployed circumstances could take a vital turn. Unlike the protests in 2009 that were mostly middle class people, the ones today seem to be mostly working class. More emboldened, radical, fearless and with less to lose. None of them seem to be hitching their wagon to any leader either. There have been calls throughout the day on social media for more protests, but they dont seem to have materialized. But what we have seen today are marches in various cities across the country in support of the clerical regime. The situation is very puzzling here and what started as a provencal demonstration over the economy has turned into very, very political. Right now we have more it questions than answers. The quigest question of all is what does this all mean for the future of iran. A major question, as ali brought up, the situation developing in iran. Thank you. Want to bring in michael ohanlon, from Brookings Institution and christopher hill, former ambassador to iraq. Michael, ill start with you. State up hire, how significant do you think the protests in iran are . First of all, happy new year to you, good friend, ambassador hill and all viewers. I think the protests mean something but we have to bear in mind the scale may not be quite as great as the first instinct. When we think about huge protests around the world f were talking about several thousand people, thats significant. The fact theyre violent is significant. And the fact that the reformist government weve been hoping to see succeed is in some trouble. That means something. I dont want to exaggerate the scale of these or predict theyre going to go anywhere in the short term. I do worry about the underlying fact that irans reformist government, which i would like to see essentially validated by its own people, and you know, preferred over alternative hard line governments, it seems to be in trouble. Thats the underlying reality im most worried about. Its interesting, ambassador, because weve had a measured response from rouhani on the protests but they have a more pointed response which really shows the fracture that is existing in this country right now. Youve got it. This is a deeply divided society. The urban secular state has never been comfortable with the sort of rural ayatollah state. And so its not unusual that these things kind of break out into violence. Recall i would agree with michael, however. Its too soon to predict that this will spin out of control. So far the regime seems too have the aacoroutrimentes. I think its a broader, deeper, systematic of a theocracy that i think many urban youths are absolutely sick of. And, michael, talk about the significance of what ali brought up in his reporting which is the fact there are more working class protesters than middle class protesters. Remembering back to arab spring, it was more of a middle class protest. It does not just reflect the economic strife existing in that country right now. To the extent are a fair characterization. I think you have to weave in all the different points. There was call for political reform and thats a big call for what protests were then. Now we see a combination of economic resistance to theocracy and iranian history that ambassador hill were just talking about. A general sense of frustration. I dont know how to penetrate is between economic frustration, political repression and the sense this theocracy has suffered the iranian state. Irans frustration with the United States and their involvement as well and their history if we think back to the early 1950s. Ambassador, President Trump tweeting his support for the protesters but senator Lindsey Graham said this over the weekend. President trump is tweeting sympathetically to iranian people. You cant just tweet here. You have to lay out a plan. Does the president do more or stand by and see what happens . Frankly speaking, i think this president ought to do less. Certainly in iran, theres a lot of popular support, a reservoir of support for americans. Many people have relatives in the United States. Theres a positive feeling about americans. That however, does not extend to this particular president. For him to try to sound like hes backing this or that somehow this is, you know, his deal, i dont think will help any protester on the street, anywhere, especially iran. You kim jonguns new years eve address, Mike Mcmullen had this to say about the address. Were actually closer, in my view, of a nuclear war with north korea and that region than weve ever been. I dont see how i dont see the opportunities to solve this diplomatically at this particular point. Ambassador, thats a scary assessment, have i to say, if youre sitting at home and hearing that. Do you agree with that . I agree with part of it. I dont see where the solution is right now. I think some elements in play may yield some effect such as the new round of sanctions which has gone after their Refined Petroleum products which could bring north korea into a tough situation, but im not sure i agree with the notion were close to nuclear war. I think this statement by kim jongun suggests north korea is playing for a longer game. The longer game is to decouple the u. S. From south korea to find ways to make the south koreans and the u. S. Think differently about issues. Certainly theres no issue more important to the south koreans in the near term, the very near term, than a successful olympics. Clearly, the kim jongun is playing to that concern and suggesting there can be talks. Heres where the americans have to be careful. Its one thing to say, look, we cannot talk to them without a basis and the basis being denuclearization. We need to be very careful that were not standing between the Korean People and efforts to talk to people. That requires some subtlety of thought which is, im sorry to say, an elusive concept with this administration. Do you think were seeing a real moment of possible diplomacy with north korea reaching out to the south and the olympics ahead . How would it affect the south korean relationship . I think anything that would calm things would be welcome. Im glad to see tensions calm down for a moment. Thats in the context of a speech where kim jongun talked about having a Nuclear Button in his office. I dont believe that completely. Well be in for a very important year in 2018. North korea has never had more capability to talk us and or our allies with Nuclear Weapons. The part i dont necessarily agree with, again, im here with ambassador hill very much is, i dont think we benefit by implying were on the verge of war, that war is almost inevitable. We have to stay poised and calm here and think how we get to a diplomatic process which has to envision a cap or freeze on north korea missile programs in the first instance and not the unrealistic goal of complete denuclearization. I think we can all agree we cant necessarily believe everything kim jongun has to say. He makes a lot of grandstanding when it comes to what exactly north korea can do. Mike ohanlon and ambassador christopher hill, happy new year to you both. Thank you for joining me. Trump says 2018 is already off to a great start, so where will republicans look next on their agenda. It depends on who you ask. Despite the president s wishes, openly transgender people can apply to serve in the military. Could it end up being one step forward and two steps back . Patrick woke up with a sore back. But hes got work to do. So he took aleve this morning. If hed taken tylenol, hed be stopping for more pills right now. Only aleve has the strength to stop tough pain auto. Welcome back. President trump and Republican Leaders hope tax cuts will help with bad headlines. President trumps Approval Rating is just under 38 , lower than every single president before him after their first year. Garrett haake is following the president in florida, and ben white, chief economic correspondent for politicco. Well start the block off by saying happy knee year to all of you. Garrett, im going to give you my first shot at all of this. President trump heading back to washington in about three hours from now. What are his priorities for the new year, if you could sum it up in a little bit of a sound bite. Sure. Hes got a couple of bipartisan opportunities coming up this year on an infrastructure package and on immigration, two issues, on which the president could potentially work with democrats to score a big win if democrats are willing to work with him, as you pointsed out, in an election year. You mentioned the tax cut the president and his party will going to try to sell the plan. Thats the president himself when he talked to reporters about this last night. He was far more opt mittsic than specif optimistic than specific about what he plans to do. Well have a fantastic year. Were off to a very good start. With great tax cuts and anwar, getting rid of the individual mandate, which was very unpopular, as you know. But were going to have a tremendous year. In the context of these two Big International stories weve been talking about today, iran and north korea even a good reminder, that the president of the United States does not get to choose all the issues he will be confronted with in this new year. I got to say, optimistic but not specific sounds a heck of a lot like 2017 but well have to wait and see. Bens thinking tax cuts are going to reverse those bad headlines theyve been dealing with over the past year, president s first year in office. Agree or disagree . Probably disagree. They will help to a degree. A lot of americans will see lower tax bills, more money in their paychecks starting in february as impoorz change the deductions. Theyll see a lower tax bill at the end of the year, but other americans, particularly those in new jersey, connecticut, california, states with high income tax and high home prices, will have higher taxes. I dont know if the numbers will be big enough, the boost to peoples paycheck will be big enough to offset the russia investigation, all the stuff he says on twitter. What about come november midterm . I think there could be some 3w50d to republicans, a, for getting something done and, in the short term, cutting peoples taxes. Short term i think it could be good for the stock market, good for the economy in the short term. Net net i think its probably a benefit. Its not overwhelming and hurts them in some states where republicans will be defending seats in connecticut, california, new jersey, places critical to how the house goes in 2018. Lets take a listen to sort of what Republican Leaders define about whats next on their agenda. I could have started with infrastructure. I actually wanted to save the easy one for the one down the road. Well be having that done quickly. You mentioned immigration. We obviously have to address that. We have to address entitlements otherwise we cant get our hablgsndle on our futur debt. Take your pick. We had entitlement, infrastructure. If it was so easy, i thought it would get done before now. Your reaction . Its going to be interesting. The deficit hawks, as ben white knows quite well, were quiet during the tax reform debate for the republican party. The question is, are they going to remain silent during this infrastructure debate . I talked to a lot of republicans up on capitol hill and they say they like that idea of infrastructure but they dont have a plan. They just have 250 million allocated through the budget over the next couple of years. Speaking of budget, they have to pass a budget by january 20th to keep this government open. I predict thats when this immigration fight will come to hey head and harry reid thinks he could have a couple a bit more time on the daca issue into the spring. If House Speaker paul ryan wants to get welfare reform done in the spring, its going to be very interesting to see whether President Trump decides to deal with democrats or members within his own party. Also ben, lets talk about paul ryan and what he wants to get done. He wants to cut money from entitlements. Mitch mcconnell says entitlement reform is dead on arrival without democratic votes in the senate. Do they how do they bridge that divide there . I dont think they bridge that divide on entitlement reform. Paul ryan would love to do it. This is a chance this is his last year. Mitch mcconnell has said, look, we need democrat boats to do that. I dont think theres a path forward on entitlement reform. Kevin, one of the worlds leading Philadelphia Eagles fan yes, tough loss yesterday, ben. Tough loss. 60, didnt matter. Youll roll to the playoffs. Ill say this, they wont get welfare reform done. I think kevin is right,there could be an immigration deal in the offing to go together with spending. You get something on d. R. E. A. M. Ers for democrats. Republicans get the spending they want and they make a deal to do all that. Entitlement reform is not happening. I was worried we were going down the sports lane and i was not prepared for that so thank you for not elaborating we have to talk sports. All i know is eagles are going to go to super bowl without carson wentz. Before i let you go, garrett, im starting with you. This is lightning round question. So give me one thing that passes and one thing that doesnt in the thection year. Your prediction, garrett. Yeah, i think some kind of immigration deal happens. Both sides want it, both sides have something they can trade. I think entitlement reform is dead on arrival. Theres no chance. He stole my thing on daca and d. R. E. A. M. Ers and immigration. Both sides want to get to a deal on that. Nobody wants to deport all these people. Infrastructure is the thing thats going to be hard to get it done. If they had got it done last year, democrats dont want to make a deal with trump and the Trump Administration and give them something to campaign on. Yes, immigration. I think there will be a join resolution that will pass before the olympics, north korea. I think that in the First Quarter is something that has a lot of bipartisan appeal. Something that doesnt pass, ill s