We have a lot of show coming up in the next 60 minutes, but i want to start with the first look now at the new republican tax reform plan set to be unveiled later on this afternoon when President Trump gets on the road and heads to indiana. Heres some of what we are just now learning. He would cut the Corporate Tax rate to 20 . Set three tax brackets to 12 , 25 and 35 . He would double the standard deduction, double the Child Tax Credit, eliminate deduction for state and local taxes. And eliminate the estate tax. We are going to walk through some of the details. I want to bring back for you stephanie ruhle. Steph, you have had your hands on the tax reform plan in the last few minutes, as i have, this is not a surprise because we knew a lot of this was coming with the streamlining of the tax brackets. Tell me what stands out to you most from what youre seeing. It is not a surprise. One thing to know about streamlining the tax brackets, we knew that was coming, but that was never a complicated portion. Thats at the end of doing the taxes. As far as the Corporate Tax goes, remember, this thing is a first blush. You know, at 20 , its this thing isnt going to really go anywhere. We know that they are trying to sort of give back with doubling the Child Tax Credit. Especially trying to give back to the middle, but when you look at this, just at a first blush, again, this is a tax cut. This is not tax reform. And youve got to walk through it because it just eliminating the estate tax, youll see democrats go crazy over this. I mean, that to them is like an immediate kiss to wealthy people. Let me ask you two questions here, steph, because ill tell you when talking about the Corporate Tax rate, thats something when i speak with folks inside the west wing as i did late last night, they say, yeah, the president really wants 15 . Hes been talking about 15 . We say 20 . Who knows what will actually come out of that tonight. The president really wants this or really wants that and changes his mind in a minute. Lets remember, the president really called china a currency manipulator every chance he could get when on the campaign trail. Then once he was president and gary cohn tapped him on the shoulder and said we have a model for this at the Labor Department and punch it in with every currency, trump said, forget it. He also said in terms of gdp, well aim for 6 . Thats a pipe dream. Youre never going to get it. As far as 15 Corporate Tax reform, lets remember most corporations dont pay anywhere above 20 . And this idea that if you suddenly lower the Corporate Tax rate, you are going to see these corporations build factories, buy planes and hire people. Its not a given. What i think what youre seeing is that you think that tax rates is unrealistic, right . To most people at home, it doesnt matter what the Corporate Tax rate is in their daily lives. So if im home and sitting around the table watching this program right now out west, what is the biggest change they will see . Will they save money with this in. Its unclear. If they are just somebody sitting at home, the fact a they get double credit for having a child, thats a positive. But if you are someone sitting at home, the Corporate Tax rate is an abstract win in theory for you. Because its betting on the idea that corporations are going to pay less money to the government. And in turn, they will pay the employees more and hire more people. That is a guess. Its not a given. Stephanie, i know that you and ali velshi are combing through this and have much more coming up on your show in 55 minutes from now. I appreciate you joining us on this show. And we want to talk about the other big headlines for donald trump today. This one not quite as comfortable for him. You know what happened in alabama by now, so the question is, what happens next . After roy moore, conservative antiestablishment and controversial former judge wins the senate gop primary and wins big. We are talking nearly ten points big taking 63 of the states 67 counties. And hey, by the way, that was against a guy President Trump and Vice President pence backed traveling down to alabama to campaign for. Steve kornacki, has graciously gotten upp early to walk us through this. So what happens now down the road . Is this kind of the canary in the coal mine for other midterm races coming up next year . Yeah, theres a couple possibilities that are raised by the result last night. One of the questions here is, what is the message here that voters, Republican Voters in alabama were sending about donald trump, about his role . Its a complicated question. As you mentioned, donald trump was backing Luther Strange, Luther Strange lost to roy moore. Heres the weird part of the dynamic. Roy moore is the antiestablishment candidate, sort of the grassroots candidate here. Very inflammatory. A lightning rod guy with all the guys Backing Trump from the beginning of the president ial race including steve bannon. Luther strange was the establishment candidate. Heres donald trump trying to sell an establishment candidate to his own base. And you can see his own base said, no thanks, well take the real deal. What they think is the real deal. Now, is that a rebuke of trump . What makes that so complicated when i talked to voters down there, a lot of roy moore voters were thinking that donald trump essentially winked at them. He was at this rally with Luther Strange. But he did wink at them. He said, maybe amade a mistake in this thing and it would be okay to vote for moore. Its about as explicit as a wink you can get without actually shutting one eyeball, steve. He literally said, i might have made a mistake and a lot of voters as you point out wont think this is a base revolt against donald trump. Thats simply not what were hearing on the ground. In the message in moores campaign, steve bannon himself was delivering the message, and basically was a saying this is a vote for trump. This is a vote to liberate donald trump from mitch mcconnell, from paul ryan, from the washington establishment. Hell do better dealing with senators like roy moore than mitch mcconnell. It goes way back in time, Ronald Reagan was president and conservatives were frustrated the first two years. Their message was let reagan be reagan. The message of the conservative base is let trump be trump. And they think putting a roy moore in there is going to help him do that. Steve, im going to ask you to hang out for a second because well talk about another race that were talking about in tennessee with the word that bob corker wont run again. But well go to Peter Alexander on the north lawn of the white house. Obviously, these are not a series of headlines the president wanted this morning. Roy moore winning in alabama. Health care dead. But he is talking about taxes. And he is now talking about the guy he didnt back that hes going to back come december. I was thinking the best way to frame this, what does the president and Charlie Sheen have in common . They both like to say theyre winning. What if your guy isnt winning . You drop your guy and go with the one that did win. Thats what the president has done over the last 12 hours. In fact, on twitter, deleting some of his tweets and giving him a big push as he tried to do over the last couple of days to Luther Strange. One of the tweets said, spoke to roy moore of alabama last night for the first time. Sounds like a really great guy who ran a fantastic race. He will help to make America Great again. Compare to a tweet earlier, alabama, get out to vote for Luther Strange who has proven to me that hell never let you down. Make America Great again. So the president now sort of recasting his team, suggesting that hes on team judge roy moore as it were and Luther Strange is obviously falling into the backdrop. What is notable here is 24 hours ago, the white house officials privately were and much of this was likely spent trying to say, hey, i think we are going to win this thing. They made this a very close race that turned out ten points in the wrong direction right now. So effectively they are erasing history as best they can and to try to get on the right side. With donald trump looking for the next topic, one to be a win and the tax reform later this afternoon. Peter alexander on the construction site of the north lawn. Thank you very much, sir. I want to bring in the former chairman of the National CommitteeMichael Steele along with National ReporterEliana Johnson and eugene scott from the washington post. And Steve Kornacki is here to talk about the shifting landscape for republicans. Steve, standby, but i want to talk about who roy moore is and what this means. This is a guy, the full weight of your party now behind a guy who said a couple things. He said part of the law reason under sharia law. Thats not happening. Homeless sexuality should be illegal. He refers to people by their skin colors, says islam is not a real religion, and yet when i had the head of the rnc on this program 24 hours ago, she said we are Still Standing by comes out of the primary. Were going to be supporting the candidate that comes to it of this primary. Lets wait and see who comes out, but we want to support any republican to keep the majority. Then ron johnson was asked about roy moore just this morning. And heres what the senator had to say. You just deal with individual as they are. I have found coming to washington, d. C. Theres an awful lot of stereotypes of individuals, what exactly, how the press portrays them is not necessarily the individual they are. So i have never met judge warren. So you are cool with the gop getting behind this guy . The fact of lets deal with the chairwoman said. Well do what she said we need to do. Its about protecting the seat that the republicans have. She has no sway over who voted her in. You have to get behind that individual and do what they had to do. In 2010 i had to get behind a candidate who declared she was not a witch for the United States senate. So you do what you have to do. And how did you feel about that . Not happy. Not happy. But that was a choice. Now he tells us. I made it very clear then. But the fact of the matter is, you go with the folks that are sent to you. You make that choice as a party chairman. So lets take that off the table. Fine. In terms whoof the senate, he is all niceynice right now. There is a rap sheet of language that is not theirs, but depending on how he comes out of the gate, if he comes out strong on behalf of strong, it could get dicy very quickly. Which hes going to do, at least all the indications are. And 24 hours over Mitch Mcconnells nogood, verybad tuesday. On the political side, you have also bob corker saying hes not going to run again. And from what i have been hearing, real support from the breitbart weighing of the conservative movement backing the antiestablishment kaerntds like roy moore. In 2010 there was a lot of talk about the tea party and the revolt of the republican base. You saw that with Christine Odonnell back in january. But i think the spirit of the tea party, the antiestablishment sphere in delaware. It is very much there. Anybody who is closely connected with the republican establishment in washington with mitch mcconnell, with paul ryan and the idea of being a republican insider, that is poison to the republican base. And the implications for 2018, they go beyond alabama. You mentioned bob corker. I dont think it is a cons since he announced yesterday. He has to worry in the next challenger is roy moore. Roger wichhart in mississippi has Chris Mcdaniel who in theirly knocked him off in the republican primary a couple years ago. Maybe the winds are blowing again. What does this mean . This could be a defeat of donald trump but not of trumpism, essentially. So big picture, where does the president go from here . You know, i had a republican strategist say to me about invoking the french revolution that they got to the pier at the end, too. There was an ideological factor many the tea party movement. Rand paul and ted cruz and mike lee were elected around the same time and came to washington and actually fought on things together. There doesnt seem to be the same kind of ideological similarity in the antiestablishment candidates now except that they are antiestablishment. If we see a raft of these guys getting elected, which is certainly possible, it will bring chaos in washington. But im not sure what else it will do. Thats not as clear to me as the key Party Candidates funded by growth were running back in 2012. What does it mean for democrats, jean . It highlights that the party that set off the lack of success of mitt romney, that they wanted to focus on diversity. They have not done as good of a job doing that when they sent someone to washington last night who said such alarming things about gay americans and minorities. I think they have to brand themselves increasingly as the party who wants to be more about americas future than past. Welcome to the third ring of the circus. This is going to be a very dynamic time here in this town. And i think steve hits it right on the button, when you look at what happens tonight, flaik, for example, this pretends to be a sea change for the senate. The senate always said we are not the house. Guess what, baby . Youre about to get a little piece of the house. They kind of had that a little bit when looking at the folks. The prior days of ted cruz. The senator republicans are going to be embracing ted cruz once moore shows up. Trust me on this. It is trump redu, their votes cant be counted on in a Senate Republican caucus. I am going to ask you to hang out a few minutes. And we are learning lessons about the defeat of health care for now. When it comes to the tax plan that the president will be selling today, so after the break, im asking republican senator john hogan about what his party needs to do different this time around to get something done. Thats next. We will cut taxes tremendously for the middle class. Not just a little bit but tremendously. Thats President Trump offering a little bit of a preview of the new republican tax reform plan being unveiled right now at the republican retreat. Two sources there are telling us that this has officially been released to House Republican members with ways and means chairman kevin brady doing most of the talking in this meeting so far. I want to talk more about it now with senator john hogan, republican from north dakota, and a member of the appropriations committee. Senator, thank you for being with us on the program, i appreciate it. Good to be with you, hallie. The tax cuts could cost as much as 4 trillion. How do we pay for this . Right. So the net actual cost will be 1. 5 trillion. Thats allocated in the budget agreement. Overall, it will be about 4 trillion, so well have to find offsets of about 2. 5 trillion. So thats where we look at some of the tax expenditures that are currently in the code that we would try to take out as part of the reform effort. You sound like thats a big deal. This is a huge issue for republicans who were not going to be adding to the deficit with trillions of dollars. Right, but that is under a static growth model. If you look at dynamic growth, youll see a lot of Economic Growth to create revenue with the lower taxes that will help to reduce the debt and deficit. The president likes to call this tax reform. This is really just tax cuts, though, correct . You know, it will be both. It will be both reducing the rate, simplifying the tax code, really focusing on workers and keeping more of their earnings in their pocket. But it also will be reform, so it will be both. And again, the key is to make it bring back a lot of money that is overseas, which can be invested in our country. And that has huge benefits. But this is not the sweeping overhaul that, for example, paul ryan has been talking about for years. Well, i think it will be very significant, but it will be a combination of both tax cuts or reductions in the rates and reform. It will be both. I mentioned at the top of this segment here that House Republicans are unveiling this big plan, democrat joe crowley is complaining democrats were not invited and are being shut out of the discussion. Why not include the democrats in this . Well, i think there will be a real effort to include democrats. Look, we want them to join us on all these things we were trying to do, whether it is Health Care Reform and tax reform, whether it is infrastructure. The key is getting them to engage with us. And you have seen the president work very hard at trying to get to engage. We are, too. And it seems democrats, at least for for example, joe crowley, wants to engage colleagues like yours. Is it a mistake to use reconciliation to do tax reform . No, i think we will be successful and use reconciliation with 50 votes. Right, which is not bipartisan, right . At the same time, well continue to try to get democrats to join with us. Absolutely. We are determined to get it done and want it done by yearend. We are talking about less sons learned from health care, one of the lessons seems to have been you cant count on republicans to get i done alone, thats what youre counting on when it comes to the tax plan, isnt it . I think we are going to try to get democrats involved. Were going to do it with 51 so republicans ca