tv Varney Company FOX Business October 23, 2017 9:00am-12:00pm EDT
dagen: thank you to caitlin hugh burns and scott martin, i hate the patriots. i love you. >> great job, dagen. dagen: varney & company, stuart, take it right there. stuart: the rally continues, stocks are going up again, new record highs, what about half an hour away, can you believe this. good monday morning, everyone. okay, look at this, stock as cross the board will be at record highs, the record run just keeps on going. big companies, small companies, technologies, industrials, they just keep going and going. the trump rally added $5.3 trillion to the market value and we are what 650 points away from 24k. why another move up today? because the president has mounted a full-court press to
get tax cuts done by thanksgiving or at least christmas and telling republicans to get it done or lose next year's elections. he's calling republican leaders and he's going to capitol hill to rally the troops and invoking ronald reagan. he needs 218 votes in the house, looks like he will get them and he needs 50 votes in the senate, he's got a very good shot at getting them too. that's what investors are looking at. that's why they are buying again this monday morning. so sit back and watch the trump rally roll on. varney & company is about to begin. ♪ >> it's morning again in america and under the leadership of president reagan our country is prouder and stronger and better. why would we ever want to return to where we were, less than four short years ago.
stuart: remember that? ronald reagan's morning in america campaign. that was an ad from 1984. now, this weekend president trump evoked that very same message in a usa today op-ed touting his tax plan. there you go. morning in america. it's working. look at this. the market is moving up as we speak. a few minutes ago we were up 20 in the futures market and now we are up nearly 40. look for more records to be broken at the opening bell this morning. it's 27 and a half minutes away. hasborough bankruptcy of toys"r"us, down it goes 2 and a half percent. parent, however, of northface and timberland raised the forecast. looking towards better results down the road and that gives them 4 and a half percent gain, that's premarket. three big tech companies report earnings thursday after the bell as you walk up to that earnings report, you're looking at
microsoft, amazon, alphabet, all of them up premarket today. how about that? in case you were worried about all of this talk about raining -- reining in your 401(k), president trump sent out tweet, there will be no change to 401(k), middle-class break and it stays. i'm sure you're pleased that they're not going to rein in the 401(k). deliberate leak by somebody who wants to bring down the tax plan and wants to show that he's not for the middle class, that's what i think. >> i'm very glad the president said is going to happen. i don't know what the motivation was and a don't know a lot of motivation of people, why would they want to put a fourth bracket when the really rich don't pay that bracket. it makes no sense, a buzz kill and i think that the deduction here is also another just
buzz-fill that they would eliminate that. it doesn't make any sense. let this bill go to create jobs, output growth and redistribute income five years from now. stuart: wait a second, art, in rush to make it middle-class tax cuts, maybe the rich have to keep on paying a lot of money, maybe that's just all politics, but if they do keep on paying a whole lot of money, this is not doing to be a very stimulative tax package, is it? >> no, it's not. they don't pay the money anyway. they use shelters, i had a piece on 2010 tax bill, he doesn't pay any taxes compare today total income. it's very low because he has unrealized capital gains, deductions for charitable contributions, gives money to his family foundations, bill and melinda gates foundation, capital gains below the surface, all of those deductions shelters and stuff are perfectly legal and they should be removed to be
very honest but they aren't but now they go get the normal guy who is working hard to raise marginal tax rate and makes no sense whatsoever. but, if that's the price we have to pay, we have to pay it. it's a great bill he has, i wish they stop doing the silly buzz-kills and irritants. stuart: the market seems to believe that, yes, we will get a tax cut and stimulative. on our screens we are showing futures going up about 20, 30 points adding onto last week's very large gains. investors seem to be seeing through this concentrating on, yes, he will get it done and, b, the tax cuts for corporations will help stimulate the economy. >> that's the big one, corporate tax rate reduction going from 35 to 20 is wonderful. i still wish it had gone to 15. that's the real stimulus to the economy. fantastic and creates basis
future prosperity. stuart: i know you're not a stock market analyst but you have to analyze the stock market this morning, we are now at -- did you say no. >> no, i didn't. i said we have been talking about the stock market you and i for three or four years, if you notice and i don't know if you have checked your record, but i didn't -- i don't mean to haul rank on you, but i've been the boom guy all the way along. stuart: just because you're older than me and you have great grandchildren doesn't mean that you're the fond of all wisdom. dow is 23,300 and change, where sit going by the end to have year? >> i think it goes up from here. long way to go up, stuart, i thought that at 19,000, long way to go before it's brought back into line with profits, interest rates and the performance of this economy. you know, we had a stock market from -- from august 1982 till
the clinton -- end of clinton until 2000 up 380% in nominal terms, 771% in real terms, this market should be better than that over a long, long period of time because the economy was worse when trump took office than it was when interrogatorian took office. and that's saying a lot. stuart: you'll be back, great morning starting, art, thank you very much. >> thanks, stuart. stuart: now let's look at politics, president trump siding with republican incumbents in reelection, the president called senator, full show of support for them if they support tax cuts. he's also going to attend the weekly senate republican launch on capitol hill, that's tomorrow. james freeman is with us, editorial board kind of guy. i'm saying, i think he's going to get 50 votes in the senate
and 218 votes in the house, are you going to say no, stuart, you're wrong? >> no, you're right, stuart. this is going to happen. [laughter] >> budget approve today get a big tax cut. we've heard from art what it's going to do and you're seeing the difference in this debate versus the health care debate. that ended up as how many people are going to get covered which is bogus metric for the quality of health care, anyway that was the debate. now we are getting the debate that the president wants to have, how much are wages going to rise, is it going to be $4,000 for the average person, is it going to be 9,000, is it somewhere in between, is it some other number, this is exactly the debate that he wants to have and it's why it's going to work for him. stuart: yes, because it's focusing on talking point. >> about growth. stuart: every day last week, $4,000 going to pockets of working families. that's a great talking point if you want to sell tax cuts to everyday people. that's a fact.
>> that's right. and there's a lot behind it. you saw that with the report the white house put out last week, a lot citations to academic work that's been going on over last decade. this is not simply a tweet, this is a lot of research showing when you cut that corporate rate down to competitive level, investment follows, productivity rises, wages go up. stuart: you have no doubt that he gets 50 votes in the senate, 218 in the house? >> i don't. stuart: you don't? >> i don't. [laughter] stuart: now, look what you did, we were up 39 premarket and now 42. see what you did? stay right there. we want more from you. [laughter] stuart: let's talk tesla because they are talk about a deal to build a factory in china. this will be breakthrough for tesla and china. what do we have on this? ashley: wholly-owned exactly in
shanghai free-trade zone district. they will have to pay 25% import tariff, however, tesla, i didn't know, cost 50% more in china than they do in the u.s. because of high-production costs in getting it to that country. this will slash prices in the country that's the number one country, believe it or not, for electric vehicles, tesla made a billion dollars in revenue in revenue last year, this is a huge market for them so to be able to actually set up a manufacturing facility in shanghai and feed that market directly will bring down the costs and they'll be able to bring down the costs of the vehicles, we don't know what model, is it tesla 3 or broad range of them. we know that they've had trouble with production of tesla 3 here because basically a log jam of getting vehicles. stuart: general motors goes into china, they have to have a local partner. this is tesla wholly owned, just them. ashley: big deal. stuart: tesla was down 6 bucks,
they will open up 5 bucks this morning because of the news from china, i guess that's it, yeah. singer justin timberlake will perform in super bowl 15 years after janet jackson wad robe malfunction. stadiums looking kind of empty, sure looks like people are fed up with players getting political. there's the empty seats. that's really isn't and the president has been tweeting about that this morning, you'll hear about it. the u.s. air force making much-needed updates to his base as north korea continues to threaten the united states, four-star retired general jack keane with us next. and the president maybe facing a primary challenger in 2020, is that guy, billionaire mark cuban, if he runs he will run as a republican, this is varney &
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stuart: stocks go up this morning, gold is heading down, just six bucks lower at 12.74 per ounce. now, the air force is pushing back on a report that it's preparing its fleet of nuclear-armed b-52 bombers, the air force says they are ready for 24-hour alert because of north korea. no decision yet. joining us now fox news military analyst jack keane, general, that's just putting north koreans aren't notice, aren't they, we've got you, don't they? >> they did discuss subject and possibility that b-52's which is the cold war alert status, airplanes parked right on a tarmac, nuclear bombs in those airplanes, crews sleeping by in nearby facility, 24/7 alert status with obviously crews
being changed out in support of all of that. i doubt if we would go back to something as rigorous as that because we can prepare our nuclear forces in the event that we had to do something with them, with north korea, i think likely, what that discussion was about is would this be something as we should do as further deterrent dealing with north korea which was the intent of why we had the forces on alert to begin with -- obviously dealing with the soviet union. stuart: i guess the next barrier, threshold is the next launch of intercontinental ballistic missile by the north koreans, if they do that, do we respond by shooting it down? >> i don't think so. but we are clearly getting closer as director of the cia pompeo just said last week, how much closer north korea is getting to min -- miniaturizinga
weapon. do they have weapons miniaturized, probably pretty close. do they have a weapon that can reach the united states, at least the west coast, most people think and able to solve the reentry problem because they have to go outer space. that's technology issue that's been going on for years and possible that they could have acquired the technology from russia or from china. obviously they didn't build icbm's by themselves either. they are using russian engineers or chinese engineers to assist them inetting to that capability. stuart: in japan shinzo abe won, allow it to become aggressive, do you welcome that, is that part of the north korea play? >> yes, this is something that's inevitable when you the rhetoric
and actual capability that kim jong un has been developing and that's further militarization of the region and abe, i think, won this sort of snap election that he called for because i think he felt his opponents were on the heels, but it's largely due to the fact that he's been very strong on dealing with north korea and also the relationship with the united states is probably at its closest test been for years for obvious reasons, they want the umbrella of security with the united states. yeah, this is something -- that's one of the sad commentaries what kim jong un is doing. potentially nuclearizing the entire region. listen, this will get china's attention, stuart, china doesn't want -- china doesn't want japan or south korea also to have nuclear weapons, that is clearly not something that's in their national interest. that's further pressure on china as they come out of this 19th
communist party to start putting pressure on north korea. stuart: i've got a headline from the washington post, the whole editorial board, john kelly owes the congresswoman an apology, this refers to democrat congresswoman federica wilson, what do you say? cap it all out, what do you say to this? >> i wish they all would lower the volume and let's get on with the real problems in the world. general kelly did a lesson about how gold star family and what happens to a soldier who is killed is dealing with a tragedy like this and, yes, he did call out the congresswoman for interfering largely in the process, you know, and by commenting on the president's comments that should be quite confidential in dealing with that spouse. that was -- that was a major thrust of comments. i don't think -- you asked me a question, i will answer it, i don't think he owes her any apology. stuart: we will leave it at
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stuart: stocks up, gold down, oil $52 a barrel this morning. how about general electric? bank of america says buy it, they've raised their rating on the thing, but we find out about dividend on november the 13th, do they keep the dividend currently at 4% or dohey slash it? we will see november the third, ge premarket back to $23 per share. now this u watch out hillary and bill, there's a nasty pay to play scandal that's coming back into focus, a russian-backed company wanted to buy a big stake in america's uranium business just as the state department under hillary was checking the application, bill went to russia, made a half million dollars for a speech and met with putin. then the deal was approved by hillary's state department. james freeman has been writing about this in the wall street journal, he's with us now.
did any money go to the clinton foundation that you know of? >> well, this is the big question, yes, money went from the clinton -- to the clinton foundation from mining companies or mining magnets in canada, i should say that ended up benefiting from the sale but what's new and this is really the bombshell of the last week is information that the obama justice department had that the russian government sent perhaps $2 million to the united states earmarked for the clinton foundation, now did that money ever get to the clinton foundation, we don't know. you mentioned the 500,000-dollar speech that clinton delivered and meeting with putin and thanks to the hill that did great reporting about this about the russian effort, corruption scheme, wide-ranging in the united states aimed at getting control of the uranium which as we know is ultimately successful because there was no objection
from hillary clinton's state department. stuart: i've heard nothing about this in the media except what you're writing in the wall street journal and the reporter in the hill, everybody else has totally ignored it. >> it's amazing when you consider the russian collusion theory has been the obsession of much of the american media for the last year but this -- this desire to go after the story suddenly disappeared last tuesday with the hill's report. stuart: well said, young man. the dow industrials will be up at the opening bell 30 points maybe across the board. we will be back.
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like aarp medicarecomplete. let's get you on the right path. call unitedhealthcare or go online to enroll. sfx: mnemonic stuart: we are going up, 23 points, 24 points higher as predict bid the future's market, gain about 20 points, plenty of green on the left-hand side, the dow is at an all-time high, i believe also the s&p is at all-time high, look, if it goes up it's an all-time high because that's how they closed and the nasdaq just hit all-time high. across the board we have gains for stocks, not huge, but we are on the upside yet again. here is a huge loser, they are down 5%, why? this is the amazon effect. amazon announcing they are launching amazon gift shop, down
5%. cisco plans to pay 1.7 billion for broad soft, they make cloud base communication software. cisco moving away from hardware and into software. ashley webster, elizabeth mcdonald, james freeman with us this monday morning, todd, what stops this market rally? >> good morning, stuart, right now nothing stops this market, right now it wants to go up. what you watch is for the volatility as we go up, the price volatility not the fixed volatility and as it continues to grind up, little every day, that'll be the story. they'll be news bond that might come out, i think even if the passing of the tax cuts will be a news. somewhere down line we will see
selling pressure but the markets go up right now every day and there's no reason to get up and fight them. stuart: they just go up every single day. >> yeah, you know, i've said before, i hate to be the skunk of the garden party, stocks are not cheap, corrections do happen. when they happen, let's take them in stride, what we are seeing is deregulatory in posture, more judges appoint who had are for the rule of law, so long-term these are all reasons to be bullish about america. stuart: it won't be a crash necessarily, a pullback, take nit stride and something you will buy on the dip. i'm sure they will. look at apple, shift only 3 million iphone 10 units when they actually launch, 3 million, that's not good. ashley: that's not going to go far at all. the first to have one of the phones, a whole lot of luck, they will start taking preorderrers this friday october 27th, a phone itself comes out november 3rd, the
following friday, but it's going to be launched in 57 countries, so you start stretching that out, 3 million units is not a lot of phones, so it's going to have a couple of impact. why is this happening? firstly because of problems with some of the components, three key components including facial recognition and problems with the camera has also slowed down the production. so the supply chain is broken at this point. it will come through, it'll take longer, now sales for the fourth quarter typically including november and december may be push intoed the second quarter of next year because of this, however, other analysts say so what, you're going to sell them now or in january, bottom line, they are going to sell because a lot of people want this phone. stuart: apple is right there at 156 this morning. it was at 160 last week i should say that. i think there's a more important story here. hello. market is up. thank you, production team, thank you very much, indeed. [laughter] stuart: we might hit $79 a share
in microsoft. that's by the way, totally all-time high. even i did not expect something like this. there you go. 78.94 as we speak. here is a big deal, tesla, they are talking about a deal with china to build a wholly-owned factory in shanghai in the free-trade zone there. chien -- china has a billion people, tesla gets factory in china, china gets ev, is that right? liz: electric vehicle. >> they have to learn how to hit manufacturing targets in china and we haven't learned how to do that in the u.s., maybe they can do that in china. seems positive that folks running government not demanding a big concession, tesla giving part of company away. they are still going to pay a tariff, that might make them
maybe a little less competitive relative to others. china's industrial policy electric cars now. liz: they want 7 million electric cars on the road in the next -- by 2025. the fact that they are paying tariff is interested, if they have partnered with chinese company they would not have had the tariff. tesla is going to pay 25% taxes on cars. tesla is getting ripped off right and left, build factory and keep technology safe so they don't have chinese knock-offs or-technology, that's why they are not partnering, i think. >> sexy brand in the u.s., maybe they can get a premium in china. stuart: i have been skeptical about the electric car and the impact and i read a wall street journal editorial, to me i read the article, gasoline-power or
electric-powered, he's saying the user experience of electric is fantastic. liz: it changed my mind, so quiet, such a sweet smooth ride. the writer of wall street journal said i squared a squirrel and could hear his own watch ticking. they sold 14,000 of these bolts since last december. tesla sold 220 model 3's and they expect 15,000. stuart: that's why general motor stocks have gone up in 2 or 3 months because of this electric car. liz: 35,000. ashley: i still don't think there's the need, what the companies need to do is get people to take test drive. stuart: todd, come in please.
>> gm is big in china. to turn everything to electric cars, it's a natural fit. that's one of the reasons gm performed so well, trading much faster than it used to. one of the reasons going to china and having relations, they will see a lot of cars over there because of gm. that's a bigger reason that gm is going up as well. liz: future is robot taxis with own dedicated lanes, 35,000 u.s. deaths, people get drunk driving and people text and kill people, distracted drivers, robots don't get drunk or text. that's the argument behind robot taxi lanes in cities. stuart: it's china or america? >> they are testing it for the united states. i know there's a lot of disagreement, the car companies see a future for a reason. stuart: get that in america -- robot cars drive -- robot cars, that's it. liz: deutsche bank is saying in
quarters gm will be out with this. ashley: no infrastructure for that in place. where are you going to create one of those lanes in manhattan? liz: they could easily. stuart: when are you going to get a charging station. liz: all the car companies and major guys are doing it for a reason, they see a future. stuart: i will have to test-drive an electric car u get in one and drive it for a week and see what happens. let's see if anybody -- [laughter] stuart: we are on the upside, ladies and gentlemen, look at this, we are up 17 points, new record high for the dow. same story with the s&p, same story with the nasdaq. now, let's talk gi. their new chief john flannery, he will tell everybody whether the dividend will be maintained on november the 13th, the big deal about ge, it yields 4% dividend at $23 per share, november 13th we find out, well, we are going to keep the dividend or not.
todd, would you be buying an old line, industrial company like ge any seem -- time soon? >> if they cut the dividend or get rid of it, they will lose stockholders, every fund is going dump the stock. ge has the potential to make a turnaround just like microsoft had a chance to turnaround as you know because you're a stock holder, i think ge can turn itself around with the right management and the right deal, they keep the dividend, they want to keep the money flowing in and stockholders and try to build within like ibm is doing right now. stuart: that would be my opinion. long-term turnaround company, it has great potential. liz: 8 billion-dollar on dividend so they can use the cash flow for capital investment. this will be a tough sell. that's sweet dividend second to verizon. stuart: let's see if it bottoms
out. president trump making big push on tax reform. todd, look, we are saying on the program that we think the president is going to get 50 votes in the senate and 218 votes in the house. let's suppose that he doesn't get the vote or doesn't happen, does the market selloff, todd? >> that might create the market crash, heavier selloff, bigger correction should he not get that vote through. we are betting a lot on him getting those policies done and if he can't get tax cuts, i think we see a bigger correction, you might think we would see under normal business circumstances. stuart: what do you say u james? >> this is a matter of dispute. some people have looked at performance of the big taxpayers and said that, you know, there's a lot of market skepticism whether this thing gets through. obviously you have a lot of people cheering this on and they'll be disappointed if it doesn't happen. it's a big setback, as i've said, a correction is maybe due at some point and that possibly could be a trigger.
i don't think that's going to happen. i think the tax cuts go through, the economy keeps rolling on. stuart: all right. is that time, 9:40i will have to say good bye to todd in chicago and james. tinny minuscule gain. 11 points higher. 23,340. washington post says jeff of staff john kelly should apologize to congresswoman federica wilson, yes, i'm being serious, ainsley ainsley is
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nicole: well, snap stock has been struggling, stock up a tenth of 1%, they are laying off 18 people from the recruiting department and this comes on the heels of laying off a roughly a dozen people from the snap spectacles department, you get the trend here. what's happening there within the company internally is that the managers are now using a different system to evaluate employee performance and evan spiegal ceo says manager wills have to make decisions of employees overall that have not been performing well. i will tell you, stuart, in 2015 there were 600 employees, just latest quarter they had 2,000 employees, they certainly have
balloon. stuart: anthem protests seem like they are having impact, is that right, joining us "fox & friends" cohost ainsley. i like that by the way. >> thank you. i'm excited about it. great, thank you. stuart: i think the president has won on the nfl story by using twitter to go over the heads of a hostile media and winning, what say you? >> it's definitely not a victory for the nfl. if you look at the pictures, the upper deck is pretty empty, not packed like it normally is, i'm curious to see what ticket sales look like next year because a lot of people are going because they have season tickets, they bought them in advance, i talked to one family this morning, they have season tickets and they can't rid of them, they are trying to sell them online and giving them away to friends, they refuse to go. stuart: matter of time before players start seeing it in
salaries. ainsley: everything is a business. you know, you're on this network, everything is about making money. i'm curious to find out how owners respond to it next year if this continues because they will lose revenue. stuart: here is another area that i think the president has won with federica wilson-kelly fight. the washington post, editorial board ran this, john kelly owes the congresswoman an apology, referring to federica wilson and the fight with john kelly. ainsley: that makes mesad, we watched john kelly, general lost his son, we watched the press conference last week, one of the best press conferences i have ever seen, he's lived through it, you know, he doesn't have anymore, his son sacrificed everything for our country and during that press conference we learned that he gave advice to the president and said, the best thing that he heard when his son died was that your son knew what he was getting into. he gave that advise to the
president. they clearly did not, federica wilson, i think, she needs to go away. she's made this so political, this is a family that has lost their son, there are four families that lost their children or wives or husbands, kids without their parents, she's making it political. these are people who fought for our country and i just think this needs to stop. stuart: i agree entirely. let's talk about your book. >> okay. stuart: ainsley. >> how many kids do you have? >> six children and nine grandchildren. the books that i really like is that you your parent reads to your children and that's very important. this book is for parents to read to their children. ainsley: just rea minder, we are learning from them and we look at life differently than we are
parents because you see your child discover rain for the first time, discover a puppy dog for a first time, things that we take for granted. it's taught me that my daughter is my teacher and reminding me to slow down and the book takes through through different things that we have experienced together as mother or daughter or mother or son or whatever it might be, going to the park together, slowing down. we are also so busy, we all have laundry list of things to do. i have a calendar, we have calendars because we can't keep it straight. this teaches you to stop and smell the roses, slow down and something to experience with your child. stuart: another thing that i do like and i have to get your autograph, another thing that i like is the illustrations. ainsley: thank you, aren't they beautiful? stuart: yes, so many children's books are simplistic decorations on the page and squares and circles and that kind of thing, different colors, this is is really art work, i like that. a young child would look at that and get --
>> ainsley: we say, where are the butterflies, show me the butterflies, this picture in particular, have you been to central park with kids, does that remind you of it? there's a place in vale park that i take my daughter on saturday and little kids have boats in water and you can rent the boats with remote control and the illustrator captured that so beautifully and then there's also a place where you can get lunch and a glass of wine. [laughter] ainsley: they left that out. ashley: that's for another book. ainsley: that's the adult version. she's done very this thing so many times and the pages are just beautiful. it looks like water colors. stuart: are you doing well? ainsley: you can get it ainsley earhardt.com and amazon, of course. liz: what's the back photo? ainsley: isn't that beautiful. a photographer in south carolina
captured that and we got permission to use that for the book. that was when she was about a year old. she has groan up so fast. stuart: i have a teenage grandson. [laughter] ainsley: some of the proceeds go to military organization. puts kids through school when they lost a loved one, parent that fought for our country. stuart: through your eyes my child's gift to me. ainsley: thanks for having me on, you're such a good friend. thanks y'all, good to see you. stuart: totally different subject, ladies and gentlemen, sean penn trying to block netflix documentary because it says he ratted el chapo out to the feds, there's a story for you and we are going to cover it.
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drug cartel in méxico. ashley: yeah, this is interesting, there's a documentary due out friday called the day i met el chapo, kate dell castillo story, the other person involved in the meeting, she's a soap star actress, one of the popular among the el chapo group. they liked her, she arranged this meeting and issue whether shun pen contacted the department of justice to say, i'm off to meet el chapo. he says he never did that but there's suggestion in this documentary that he did. el chapo was captured three months after this meeting happened back in october of 2015. sean penn apparently and his agents and others are putting pressure on netflix to either edit this documentary or don't air it, the suggestion that he was behind el chapo's capture claims it puts him and his family and anyone associated with him in danger because of frightened of revenge from el chapo associates.
stuart: i remember the story broke because the man had gone to the bathroom, tunnel, motor bike underneath the tunnel. ashley: the escape plan. sean penn did an interview for rolling stone, that's how this whole came out. he's worried for his life, the documentary is coming out that he helped the feds, he's at risk. stuart: i want to know what sean penn thinks about the government in venezuela. liz: bernie sanders. no word yet. stuart: up next i say -- i say the left has jumped the shark with its outrageous claims about general kelly and the president's call to the gold star family. my take on that and rob o'neil, the man who killed bin laden joins us in the next hour as well.
stuart: when frederica wilson called. jenna: john kelly a liar and racist, you know somebody has jumped the shark. that is they made a claim so outrage just and demeaning it deserves ridicule. when the full editorial board of "washington post" demand general kelly apologize for calling her an empty barrel. you know the media jump the sharked. let's not forget the rachel maddow linking our soldiers in niger to president trump's muslim band. it is become obvious that the media has lost it. democrats are beginning to understand that the throwing around the racist word as a strategy that is the word you throw out there. listen to former president jimmy carter, he tells "the new york times" i think the media have been harder on trump than any other president. he goes on, they feel free to
claim trump is mentally deranged without hesitation. the former president does not approve. this morning the media is strangely quiet. if they know they have backed wrong horse. their determination to pile on the trump hatred is obvious. they know they have lost this one. perhaps they also realize that president trump has accurately put his finger on the pulse of america. the president sent the football fans don't want poll sicks in sport. he got that right. he sensed that americans don't particularly care for politicians that who try to exploit bereavement calls. he to the that right too. maxine waters says she is going to take out president trump. representative al green says impeach the president. last we her from frederica wilson, she was saying the white house is full of white supremacists. it is time for democrats leadership to come clean. where is far left of your party taking you? time for the media to be honest. quick telling us we're all
racist deplorables and start covering the growing economy, america's energy dominance and yes the trump stock market rally. the second hour of "varney & company" is about to begin. ♪ stuart: yes, this is the trump stock market rally. look at it go, we're up 27 points, we're up to 23,000, 356. hasbro says the bankruptcy of toys "r" us are going to hurt their own toy sales, they are down 8%. record high for microsoft. believe me the small amount of, microsoft stock that i own is not trumpet-worthy, can we be clear of that? it is worth celebrating. was that a sad trombone i heard
there? please. apple having trouble with the iphone x? ashley: sad trombone for this one. looks like one analyst, they will have only three million iphone x's available on the market. preorders go in this friday. they will launch the i tone 10 or x or whatever you want to call it in if 57 countries. three mill will not go far at all. the problem with the supply chain. facial recognition. has slowed down production. big tales of the iphone x is expected to bring in the fourth quarter may spill over into the first quarter of next year, because they simply won't be available. analysts say, doesn't matter, they will still sell them. stuart: tell that to the stockholders. ashley: they are a little nervous right now, yes. stuart: big news on tesla. they're talking about building their own factory in, china.
liz: they sold a billion dollars worth of electric vehicles last year in china. china is going all-in on lech thick vehicles. saying our pollution is so bad you can see it from outer space. that is what is going on china. cracking down on power plants. hydro power, gas fracking. seven million in electric vehicles sold there by 2025. that is what china wants. tesla says they will own the plant. they will accept the 25% tax from china. they have partnered instead they wouldn't have to pay a tax. this is big bold bet on electric vehicles. elon musk said two years ago, putting, solely owned plant in china will cost it by a third. ashley: number one electric vehicle market in the world. liz: the fact it will not hook up with a chinese partner, they
have a big problem with tesla clones and copycats. they're trying to protect the technology doing it on their own. stuart: going with general motors and chevy volt which got tore risk review. general motors up up to 45 i'm going with that one. lawrence jones, from the blaze is here. i use that term jumping the shark, because you lost all that credibility, saying general kelly is a racist. that word is chucked out there far too often. >> good to be with you in studio, stuart. the rhetoric from the democrats is getting out of control. one is calling for assassination of the president, maxine waters. all the way to congresswoman never serve ad day in her life in the military criticizing john kelly, who a gold star father. people don't absorb he is able to speak on the experience because he went through this. not only that, the president,
they have been very vocal about, the president did not know how to call these families. he went to john kelly to get the advice. that was brilliant. he doesn't know. john kelly does know. in the context of what donald trump was saying, the president was right. he knew what he signed up for, we thank you for his service. stuart: the word racist, chuck that word out willy-nilly, it loses its bite. >> it has no effect. stuart: you call somebody a racist that is the worst thing you can say about somebody, rightly some. >> before election of donald trump, calling people racists bigots, called him every name in the book and had tapes to justify hatred of them and it didn't work. when people are broke on daily basis, kid are struggling, they don't want to hear this. they want results. democrats are suffering. they don't want to hear what is coming out of your mouth.
they want action. stuart: you're staying here for the hour. >> i am, if you don't kick me out, no. lawrence, thank you very much. i want to get back to the tax reform deal here. i want to bring in economist david schmidt. he was in the room for the 1986 tax cut preparation and discussion there off. david, i think there is 80, maybe 90% chance, yes we get tax cuts done this year. aim you'll all-in. i think it will happen. are you? >> yes, i am. tax reform is about to go from 20 miles an hour to 80 miles an hour. it will get very fast, very exciting. keep in mind, really in washington two plans. there is plan a, the well-known plan that the president and congressional leadership, the big six have been working on, then there is the backup plan b, a basically three-part plan. it's a tax cut plan. it doesn't eliminate deductions or anything like that.
cuts corporate rate. it does repatriation and raises the standard he deduction for working families. essentially plan a i think it is 55, 45. better than 50/50 bet. it will be a struggle in the senate. not impossible. plan b, probably 80% bet. you can't be 100% bet because you have a senate full of prima donnas who are not afraid of the leadership. stuart: interesting. the president this morning shot down all the speculation that the tax plan would limit how much you could put into your 401(k) and get a tax deduction. i will show you the tweet. there will be no change to your 401(k). this is great and popular middle class tax break that works and it stays. pleased to see that? >> yeah. i was, but i will say this,
having been through this process, lots of times you have provisions you know you are not going to get through but there are items to trade off. the president is new to this. he saw that. that will be unpopular, so he tweeted. reality there will be all kind of provisions. this is back room negotiation. people will sometimes say if you get rid of that, i agree to your plan. that is something you never intended to go through with anyway. stuart: bargaining chips. >> totally, the deduction for state and local taxes. the fourth income tax bracket, 39.6, they are bargaining chips, chuck them on the table and withdraw them or enhance them as you see fit. >> that is exactly -- that will happen in the senate on top rate of individuals, 39.6.
collins and corker if they balk on deficits and distribution, claiming that the joint tax committee says the wealthy will get all the tax breaks, then you will see the bargaining chip, they will go back to say, we'll keep the 39.5% top rate to get the bill through. if that doesn't work they will to to plan b. stuart: i like your ideas on plan b. that is a straightforward, relatively simple tax cut for corporations and small businesses and repatriation deal. that is easy. >> there will be an interesting little barometer, telltale sign coming up. watch the ways and means committee put together a bill, called marking up the bill between now and thanks giving, the next few weeks. every lobbiests in washington,
are thousands of people, like the sioux looking down on general custer. general custer is mr. brady, the chairman of the ways and means committee, they're looking at all the loopholes being closed in plan a. i got to tell you, it is going to be a fierce attack if general custer can say i'm fighting back, and he has an eight-seat republican majority on the ways and means committee, if he can fight back on special interests, get that bill through before thanksgiving, that will be a telltale sign that the republicans have some backbone and they believe in the whole process of tax reform. watch ways and means. it will be very interesting. stuart: i watch the market which watches ways and means. thank you, david, sir. see you real soon. president trump says he will release more secret documents on the kennedy assassination. thousands of pages could be going public, 54 years later on.
we'll check on that. new push for tax cuts, new highs on the markets. look at that go. watch the market roll on. we'll be right back. ♪ think your large cap equity fund has exposure to energy infrastructure mlps? think again. it's time to shake up your lineup. the alerian mlp etf can diversify your equity portfolio and add potential income. bring amlp into the game. before investing, consider the fund's investment objectives, risks, charges, and expenses. read the prospectus carefully at alpsfunds.com/amlp
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stuart: president trump is going to visit beijing next week. this is for the upcoming asia summit. ashley: yeah, it is, it is. there is asian-pacific summit in vietnam. he will go to that. he will visit beijing where we're told he will put more pressure on the chinese in turn put more pressure on north korea. he will bring up the trade practice of china, you can sure he is going to do that. he will visit vietnam for the summit. there is potentially a meeting between himself and vladmir putin at the vietnam summit although that has yet to be
confirmed. it is interesting, he also says that there are no plans for president trump to send jimmy carter, former president jimmy carter on a mission to north korea, having mr. carter saying he would be quite happy to do that. the trump administration saying we have no plans. stuart: to me this is big news. liz, you say you heard about this on november 3rd. i never heard of that. liz: asia economic summit. stuart: that is being held in vietnam. the president is going to beijing. stuart: china. ashley: the manila philippines as well. stuart: that is good. >> face-to-face. stuart: shocked. didn't know about it. you caught me. big board holding up with a gain. we're at 23,347. now this "the washington post" editorial board criticizing chief of staff john kelly for his comments about congresswoman frederica wilson. look at this headline. john kelly owes the congresswoman an apology. look at this interview with the
"new york times," former president jimmy carter, he said this about trump and the media, quote, i think the media have been harder than any other president, certainly harder on this than any other president certainly i've known b i think they feel free to claim that trump is mentally deranged, and everything else without hesitation. ashley: yes. stuart: howard kurtz is with us, host of "mediabuzz" on the fox news channel. i was surprised to hear that from mr. carter and some other democrats, maybe pulling away from some extreme criticism of president trump. what say you? >> isn't sitting a former democratic president, 93 years old, who certainly got plenty of bad press while he was in the white house feels compelled -- he has never seen such negative coverage and mentally deranged. jimmy carter spoke from the heart. yes he would like to get some diplomatic assignment from
president trump, people that defend the media and carter is part of that exclusive club, stuart, has credentials to make the case. stuart: is there a feeling, leading democrats, they maybe feel the left of their party is going too far and not carrying the country with them? >> i think most leading democrats, are playing to their base, that despises donald trump. chuck schumer, has at least diplomatic relations with president trump. i don't see, i don't see them giving a lot of ground to this president. stuart: espn's jemele hill, is defending the network, espn, because they suspended her. roll that tape, please. >> espn acted what they felt was right and, you know, i don't have any argument or quibble with that i would tell people, absolutely after my donald trump
tweet i deserve that suspension. i deserve it. i violated the policy. i deserve it. stuart: said itself times, i deserve the suspension. what are you reading into this howard? >> the first time in whole mess i agree with jemele hill. she deserved to be suspended. a lot of people tried to turn this into a free speech crusade. first she said president trump is white supremacist, idiot. espn didn't do much of anything, giving her a slap on the wrist. warned about the social media policy and attacking the dallas cowboys owner, suggesting a boycott of the a team that espn does business with. that brought the two-week suspension. she was suspended for making espn a platform, using her own twitter account, why do people follow her, because she is sports host on espn and finally get its she went too far. stuart: at top of my editorial
at the top of the hour i thought president pulse put the finger on america on the issue of the nfl and general kelly and congresswoman wilson. i think he is accurately reflecting what a lot of americans, if not the absolute majority think about those two issues using that twitter account. what do you say? >> i agree with you on the nfl even though he has taken a lot of abuse in the mainstream media, being divisive, clearly whatever americans feeling on protest, don't like fact of these players making a lot of money kneeling during the national anthem. on the whole general kelly flap, what bothers me, it is depressing of death of these four american heroes is becoming politicized on both sides. you could say president trump opened door with the answer on press conference, talking about barack obama and others. having done that congresswoman wilson has been constantly on tv attacking the president. now making it racial. saying, people in the white house are white supremacists. it is just sad to me that the to
score political points we have totally taken off the spotlight what happened in niger, where it ought to be on fallen soldiers. stuart: well-said howard kurtz, thank you very much this morning billionaire owner of mark cuban, owner of dallas mavericks, if he runs in 2020, he will run against president trumps with a republican. remember, mr. cuban marked clinton last time around. ♪ six in the morning. she thought it was a fire. it was worse. a sinkhole opened up under our museum.
looks like 33,000 fully unredacted documents they have never seen before, completely unredacted. this will zero in on the trip lee harvey as wall made in september 1963 to mexico city. he wanted visas to travel to the soviet union and cuba. he was meeting with officials from the soviet union and cuba in mexico city. what did the cia and fbi know about lee harvey oswald ahead of time? when i was at "wall street journal" i wrote a story about how lee harvey oswald's committee, free cuba committee, they were making pamphlets. the jfk administration sicced them on the organization. stuart: russia, russia, russia. liz: interesting stuff.
♪ yes you can ♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ well i'm gone ♪ can i kick it? ♪ to all the people who can quest like a tribe does... ♪ we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. stuart: we're up 30 points. 31 points. we'll take that, 23,359. etsy, the i think of them --
liz: crafts. stuart: i didn't say that. why are they down 3 1/2%? i'll tell you. because amazon will launch amazon hand made gift shop. what you're looking at -- ashley: down goes etsy. liz: poor etsy. >> they're killing everyone. stuart: you got that right. president trump will attend the senate's weekly luncheon tomorrow on capitol hill. tax reform is on the centerpiece. we have a catherine munson. you have i believe have operations in 600 locations, is that correct, is that right, catherine? >> 670 but, 600 in the u.s., yes. stuart: we'll take that you're a medium sighed business operator, what is the single thing you want out of tax reform more than anything else? >> more than anything else, i want small businesses,
pass-through entities, to have same lower tax rates as large corporations. stuart: okay. that means, if you're running a small business, and you're running it through your own personal, private, tax return, you run it through that small business? it is subchapter s, it is the pass-through deal, you want a tax cut for those people? that is it what you want more than anything else? >> absolutely. more than half of all private sector employees in the u.s. are employed by small companies. 80% pay taxes through the as a pass-through entry. we need to unleash the power of that engine. 2/3 of all jobs are created by those small companies. if we give them tax relief and big corporations, that will release growth and lots of well--paying jobs. stuart: you're a trump supporter. supporter of the trump tax plan. let me ask you this, if you got what you wanted, a much lower
rate for small business, would you, as a small business start lying more people? >> absolutely. not only we at fast signs international would hire more people, but our international, which are independently operated, open new locations and that will jobs, jobs, fastsigns franchisee es are having well-paying jobs. they are not hiring unskilled workers. they pay skilled workers and pay a very fair hiring wage. stuart: you're seeing this on the program this, is my opinion, there is 80% chance of getting tax-cut package this year. i say it is 80%. what say you? >> i hope you're right. i'm really pulling for something positive to come through this year. stuart: all right. catherine, hold on a second. thanks very much. lawrence jones is sitting next to me. he is i can shaking his head.
i thought you were a positive guy. >> i'm a realist. i want it done and done it fast. senate can't do anything. 200 bills passed in house. dies in the senate. they couldn't accomplish health care. why do they think -- stuart: if the republican party can't do tax cuts, what is a the point of republican party. >> totally agree. get ready for midterms again. they won't be able to do it. stuart: waiting on the next election. >> you have squishy politicians on the republican side are willing to compromise with the democrats and go along with the agenda, sorry. they will cave on this issue. hopefully the president can get some sense into their head when he goes to capitol hill this week. i don't think so. a lot of them hate him. a lot of those people can't stand him. they don't care. they won't run for re-election just to target him.
stuart: catherine, i have to tell you, that our friend lawrence is wrong and i hope you're 100% right. i hope to see a tax-cut package this year. >> i'm hoping he is wrong too. stuart: we'll throw him out of studio any minute. no, you stay, all right? still on tax reform, our very own maria bartiromo spoke to president trump on the growth agenda. roll tape. >> 1 1/2% growth for a long time. >> i call up, i become friendly with leaders of other very, very large countries. how are you doing? they are saying we're not doing well. we're not doing well. gdgdp is is at 7%, g-fp is at 8%. we're not happy. stuart: i want to bring in brian wesbury. the tax-cut package what little we know about it, reducing rates for corporations and individuals, et cetera, will it
stimulate the economy so we get an extra 1% growth in gdp? >> i'm going to say yes, but i'm optimistic because i think we'll get a cut in the corporate tax rate. what i worry about they're talking about adding a fourth or fifth bracket, what we learned from ronald reagan is, it is top marginal rate that matters the most. so if republicans throw in a higher top marginal rate, that is going to offset some of the positives from a corporate tax rate cut. but net-net, if we don't see that, we'll get 1% more growth. by the way, stuart, that means over the next 10 years $3 trillion more in revenue, just from economic growth. so that, they can use that revenue to offset the cost of any tax cut. stuart: the most important tax cut to you though, for the economy, is the cut in the
corporate tax rate, and a cut in the rate of small businesses? that to you is key? >> well, yes. and no. i think both. the average corporate tax rate in europe, continental europe right now is 18.8%. ours is 35%. no wonder companies want to keep money over there, continue to grow assets outside of the united states. so we need to bring that rate down. if we bring it down to 20%, that is going to bring investment back to the united states. no doubt about it. but if at the same time, we raise tax rates on higher income earners, that slows down savings and investment in the united states. so, all i'm saying is, that you can't, you can't, supply-side tax cuts mean lowering tax rates on everyone, not just business, but individuals too.
if you don't do that, you're not going to get the bang for the buck thaw hoped for. if we were to raise tax rates on individuals, cut tax rates on corporations, i do believe the economy would grow faster, but not as rapidly as it would if we were able to cut tax rates on everyone, and that is what i think is fair and would be best for economic growth over time. stuart: i think market sees that, by the way, the market is up again this morning, we're 36 points higher now. >> right. stuart: 23,364. looks to me the market says we'll get a tax plan and it will be stimulative. is that right? >> i totally agree with that. throughout the entire term of barack obama, i believe the stock market was at least 30% undervalued relative to where profits said it should be. that undervaluation has now shrunk to 10%. in other words, markets are no
longer worried about high every tax rates, more spending. more regulation. those were things that were keeping the stock market back. it could do even better. right now we've closed that gap. if we actually get tax cuts, we'll get at least 10% more out of this market. probably even more. by the way, those capital gains revenues will help to pay for this tax cut too. so i certainly hope that these republicans push for a dynamic score for this. we're going to have higher economic growth, more capital capital gains, higher tax prices. all of that allows us to cut tax rates across the board and not add this higher tax rate. that is shooting yourself in the foot. i don't know why they're talking about it. i wish they weren't. i hope in the end that is left on the cutting room floor. stuart: brian wesbury, thanks very much for joining us. we appreciate it as always. lawrence jones is still with us. he is still shaking his head.
lawrence, let me make the argument to be very clear. if the republican party can not do tax cuts by the end of this year, they're done. >> i agree. stuart: every politician looks towards the next election to say, can i get reelected? what -- >> donald trump would be safe. the republican congress won't be safe. stuart: yeah, exactly. -- tax cuts. >> the american people will blame congress. they won't blame donald trump for this failure, because they have not been able to send him a bill. he has cover. he is is talking with the american people. stuart: that is what i'm saying. so congress, the republicans -- he will get 50 votes. liz: hang together. hang together, hang separately. stuart: yes. they all know that. what is so strange about this? >> i totally agree. i'm frustrated just like you. i've been fighting since the tea party telling them that i want this done but they can't
govern. that is a fact. ashley: what will they run on in 2018? we did nothing. >> we need more time. that is what they're going to say. it will not work. i've already started to get emails about money. they're not getting a dime from me. for what? you haven't done anything. nothing. stuart: you're cutting off money. >> they're done. stuart: lawrence jones, that is a nasty blow. >> you have to get them where it hurts. they only care about the donors. stuart: but the markets are on my side. the market is up. new record highs across the board. why is that? because the market thinks we'll get a tax cut done, that republicans will have 50 votes in the senate and 218 in the house and lawrence jones, you're totally wrong. news just in, amazon received 238 propost where it should put the second north american headquarters. they will not release the pick until next year, but may release a short list at the end of this
year. amazon's down. a lot of cities are waiting with bated breath. are we going to get it. >> no tax cuts though. stuart: stop it. bowe bergdahl, convicted of desertion and misbehavior, we could find out today if he will spend the rest of his life in prison. we're on the story. the left jumping the shark on president trump as i say. congresswoman maxine waters posting a video, says she will take out the president. time for the democrats to come clean about what the left is doing them. ♪ financial crisis, and saw his portfolio drop by double digits. it really scared him out of the markets. his advisor ran the numbers and showed that he wouldn't be able to retire until he was 68. the client realized, "i need to get back into the markets- i need to get back on track with my plan." the financial advisor was
ashley: president trump leaving the top tax bracket in this country right where it is. art laffer, says, guess what? the rich will use loopholes to pay less in taxes. roll tape. >> warren buffett, had a piece in the "wall street journal" number of years ago on his 2010 tax bill, he doesn't pay any taxes compared to his total income. it is very low because he has unrealized capital gains, deductions for charitable contributions. gives the money to the family foundation, bill and melinda gates foundation which are tax deductible. he gets all capital gains below surface of berkshire hathaway. all the shelters and stuff are perfectly legal. they should be removed to be
very honest. but they aren't. they get the normal guy working hard to raise his marginal tax rate, it makes no sense whatsoever. if that is the price we have to pay, let's pay it, because it's a great bill he has got. long time. with durable durability and rugged ruggedness. i like the extra power hauling power maxi power!!! and quality. seems they make them strong extra strong mile after mile after mile. ♪chevrolet!
1.29% helping the dow. now this. "the washington post" full editorial board is calling on white house chief of staff john kelly to apologize to democrat congressman frederica wilson. joining us rob o'neill, former navy seal and fox news contributor. you're a military guy. what do you say, when "the washington post" tells general kelly says, hey, apologize? >> if there is video and there is nothing wrong with apologizing. demanding apology and outrage is over the top. i do think congresswoman started this whole thing by politicizing the conversation between the president and a widow. stuart: i totally disagree? >> really. you don't think he should apologize. stuart: i do not. >> i'm saying if he is wrong and made stuff up, i got it wrong, i didn't remember it that way. stuart: this is four-star general -- >> you don't get to four-star general marine corps, he is not a liar. he is a great person.
stuart: right. >> impeccable character. if he needs to deflate it, deflate it. i was wrong. stuart: the white house explained it saying not during that speech, did the lady, frederica wilson say what he said/she said. those comments were made off-camara, to other people. >> i'm saying if there is video, if they were made and he is not wrong, don't apologize. if he is wrong, there is nothing wrong with apologizing. stuart: i would have expected you to defend general kelly being called a racist. >> the racist thing is wrong. when they throw racism around because they lost the argument, they have nothing else to do. racism being everywhere, everything is racist, nothing is race i. it takes -- stuart: means nothing. chuck that word around. >> all the words they're using misogynist, whatever the flavor of the day. if there is proof he is wrong, apologize. there is nothing wrong with making mistakes.
people learn from mistakes. i wasn't there. i haven't seen the video. if he said i -- stuart: you shock me. i would say you were pounding table in favor of general kelly. >> i'm about honesty and good looks. that is how i roll. stuart: can we continue. >> yes. stuart: be careful i will throw you out of here. bowe bergdahl may be sentenced. >> i think he is. stuart: the charge is desertion and misbehavior before the enemy. >> yes. stuart: what do you think is legit here? >> he, you know is deserter. he definitely did that. misbehavior in front of the enemy carries more heavy could be life in prison. three vets will testify. one is friend of mine i served with. shot in the leg, in femoral artery on the mission to rescue bowe bergdahl. we suspended all operations to
search for bowe bergdahl. we stopped entire machine. >> i was on the base he was on when he walked off. fob, forward operating base, shank. he was in the one o walked off. we were doing vehicle interdiction, hitting taliban going back to pakistan before the sun came up. we stopped that because this kid walked off base. jimmy hatch, retired medically, killed his dog he was handling. i went in them to assist them. they landed into hornet's necessary. this is my guys. we flew in afterwards. jimmy was hit. our guys saved his life. he will admit it. turn that kit on his leg. he could have bled out if we didn't have medical training we have. even jimmy, wants him to have a fair trial and fair sentence. at minimum he would like to see dishonorable discharge. a lot of people, bowe bergdahl was in captivity in a cage.
he was in there five years got punished. he really messed up. i believe the judge is colonel, i think he will be fair with bowe bergdahl. a lot of guys were killed, a lot of guys were hurt forever. a guy got shot in the head. he is in wheelchair, can't speak, going after bowe bergdahl. all because he walked off the base, horrible decision. stuart: a price must be paid. >> i believe so. stuart: the first part wasn't great but second part was pretty good. will you come again. >> anytime. stuart: if you're not careful -- rob o'neill. you're all right. >> good to see you. stuart: look at markets. record highs. this is a wall street surge, basically. top of the hour, my take, and why, why you should make no mistake, this rally on wall street, it is all about tax cuts. bring it on. hi, i'm the internet! you know what's difficult?
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data systems, all for a profit. what is this about? hillary vaughn with more on the story. hillary? reporter: cyber threats hitting schools are happening more frequently and the attackers are becoming more dangerous. the attackers are not just getting names and hands on student addresses, students grades, disciplinary records and even their medical records. so far hackers targeted 30 schools coast to coast, costing their targets tens of thousands of dollars. this is money spent to pay off hackers or fighting back against the attacks. valley college here in los angeles paid $28,000 ransom to hackers in january. not just data that they're after. schools in atlanta, boston, and georgia had their direct deposit paychecks intercepted and rerouted to unauthorized accounts, leaving schools to make up the difference for their employees. in iowa's johnson city school district, hackers released
students names and addresses online. they even sent threatening texts to parents. some threatening to kill their children. school in response was canceled. one prominent hacker claimed responsibility for the attack in a tweet, saying they released the school directory, now any child predator can easily acquire new targets and planned the threats based on grade level. the fbi says cyber extortion cases are on the rise. as classrooms become more high-tech, cyber experts say nor needs to be done to make sure we're protecting our kids data and our children. ashley. ashley: whatever is next, these hackers, hillary vaughn, thank you very much. very interesting story. talking about hacking, in our next hour, former top official with the bush administration helped deal with the aftermath of 9/11 will be here. we'll ask is there any way to get one step ahead of hackers? more "varney" after this.
♪ stuart: make no mistake, this latest wall street surge is all about tax cuts. yes, strong profits do help, but investors can feel a deluge of money on the way. they clearly believe that tax cuts are coming this year. they're encouraged by what the president is doing. first and foremost, he is telling the gop -- in no uncertain terms can -- that youl lose next year if you don't get it done. he told maria on fox business you're in deep trouble if you fail on this. second, he's hands-on with obamacare. he was hands-off with obamacare -- i'm sorry, wait a second. i'm going to read that again. [laughter] hehe is hands on with tax cuts. with obamacare he was hands off. let's get that right. it didn't work with the hands-off business, so now the president is going all out to charm, cajole and strongarm the swamp to get the votes that tax cuts need. and he's using twitter to go over the heads of a clearly
hostile media. he did it again this morning, quickly squashing the speculation about your 401(k) deduction. here's what he said. there will be no change to your 401(k). this has always been a great and popular middle class tax break that works, and it stays. then in "usa today" he invokes ronald reagan, saying it's morning in america again. and this week he'll be working the phones and visiting capitol hill. it is an intense lobbying campaign. and just look at that market go. $5.3 trillion added to stock values since the election, and the dow is up 5,000 points and still rising. can the president get 50 votes in the senate and 218 votes in the house? that's what tax cuts require. investors believe he is going to do it. the third hour of "varney & company" is about to begin. ♪ ♪
stuart: we're now up 21 points at 23,349. more winners than losers on the dow 30. in fact, we've got new records for the dow, the nasdaq and the s&p. it's a big week for technology. amazon, alphabet and microsoft, they report their profits thursday. come on in, keith fitzgerald, money map press chief investment strategist, and we also have with us john lonski, moody's managing director. keith, to you first. why are you cautious about putting new money, more money into these big technology companies which have done so well? >> it is purely technical right now, stuart. long term i still think they're the best game in town if, in fact, one of the only games in town. however, right now i'm very concerned by news that says they've been lobbying the hill intensively, spent millions of dollars. i think that could backfire
against their brand, and i think if that happens, it changes the scenario. they're going to become the hunted as opposed to the huntees. stuart: so you believe there's political pressure especially on the facebooks and amazons of this world, it's political pressure as opposed to -- well, they're going to show some pretty good profits, i presume, but you think it's politics that's going to get 'em. >> well, they could run into antitrust lawyers, they could all of a sudden become the man which would be terrible for all the liberals who supported them. i think there's going to be a real comeuppance if this lobbying works against them because they're going to figure out these are big companies with big budgets just like any of the other industrials they've gone on the attack against in the last few years. stuart: amazon, in particular, is vulnerable there. markets just keep on going up, and i've been saying all morning long, john lonski, that this is because investors believe we are going to get a tax cut. >> they believe that's going to be the case, and a tax cut is important. it's constructive.
let's not forget though investors also believe that any forth coming rise by interest rates is going to be mild. this helps to explain, you know, for the year to date housing sector-related stock prices are up by 30%. that's outrunning the overall market. that would not be the case if investors were worried about a liftoff by interest rates. stuart: let's clear something up now, because there's been some speculation that they're going to -- the tax reform package would rein in your 401(k) deduction. but the president tweeted this morning, and i'll play it for you, there will be no change to your 401(k). this has always been a great and popular middle class tax break that works, and it stays. >> what a dumb idea -- [laughter] stuart: don't ever want to touch that. >> you don't want to touch that. you want to encourage people to save money for their retirement. most americans, perhaps, are undersaving for retirement. that is an absolutely nutty idea that will increase the budget deficit over time. stuart: and, keith, i guess you're pleased to hear there'll
be no touching the 401(k). >> absolutely. that's one of the most sacred of all tax deductions. it's a real incentive to build a future for the average american, and it has got to stay above all et. stuart: what have you got, liz? >> why would they touch the 401(k) when the social security system is under such stress? stuart: may i say i don't know where that speculation came from, but i've got a buck says it was the left chucking a monkey wrench into -- >> the democrats have been holding hearings in the house about taxing your 401(k)s. nothing is sacred to their tax and grab and spend, you know, mythologies that they truck around. stuart: it's a crazy idea, messing around with that, a great success story? >> put that to rest. stuart: thank you. i shall do that. let's get to general electric. we're going to find out next month, november 213th we -- the 13th we believe, whether or not ge maintains its strong dividend or whether it cuts it. what are your thoughts on this, keith?
>> i think ge -- and, boy, i'm going to put my foot in it -- i think ge may not exist as we know it within ten years. stuart: why do you say that? >> i think the company's really struggling. it's had trouble figuring out what it want to be, it's had trouble figuring out what it's been. it's certainly off of the neutron jack mentality. it's gone all over the place, tried to be all things to all people, and it has either got to have a major reinvention or a major pivot or, you know, in ten years i think it's gone. stuart: so you would not buy it at 22 where it is now on the hopes of a bounceback? you wouldn't buy it at 22? >> no, i would not. because if you look at the big tech we talk about, for example, those things are growing five times as fast, have twice the earnings, and they can add a billion dollars with a few lines of code. ge is absolutely the opposite end of the spectrum. they're still about stuff and things. to me, that's a very different environment in today's marketplace. stuart: okay, john, what do you say? >> it's odd, because the revenue numbers really aren't all that
bad. their cash flows keep on shrinking, and some claim that's because of poor execution, and that's another way of saying poor management. maybe there is a case to be made for breaking up ge. >> bingo. stuart: this is all about the dividend. >> yes, okay. fortunately, that's the case for now. i want to warn you about something. right now we have net dividends paid by non-financial companies, 42% of their overall internal funds. last time we got to that ratio, 2007. we know what happened thereafter. stuart: wait a minute -- >> i think, you know, there may be, we have to have work growth by profits. again, we need this tax reform. boost cash flow and, of course, that would improve the outlook for continued growth by dividends. stuart: what have you got to say about that, keith? >> i'm with him 100%. that is a major warning sign. it's a canary in the coal mine, whatever expression you want to use. i think it's a serious problem, and this ratio does concern me. i'm watching it very carefully.
stuart: i'd be inclined to buy at 21, 22. >> at this level? stuart: i would. i'm not going to, but i would. [laughter] i mean, i just can't see a company of that size going away completely. i see it making this best effort to reform and bouncing back. i mean, where am i going wrong here? >> you're not going wrong, stuart, that's a very valid assumption. but if you look at the numbers and you look at the potential, today's financial markets are all about alternatives, and i submit that you can go with stuff and things, or you can go with code that's going to change the world. stuff and things you're probably going to do okay. it's very hard to imagine a company like that going out, but then they said the same thing about general motors, about the financial crisis, about enron, you know? you've got to look at history very carefully before you make that kind of decision, stuart. [laughter] stuart: okay, dad. i understand -- [laughter] look at it very carefully before you make a decision, son. all right, keith, your time's up. thanks very much for joining us. and, john, thank you too. now this, apple will have
shipped only three million iphone x units when it launches november 3rd. the stock is in a holding pattern at 156. tesla talking about a deal to build a factory wholly owned in china. this would be a breakthrough for both tesla and china. not much movement in tesla's stock, it's up $1.50 at 346. democrat congresswoman maxine waters is going after president trump again. during a speech in new york this month, she said she wants to take out the president. we're following that story for you next. ♪ ♪
chris stirewalt is with us, fox news politics editor. chris, i think he's going to do it. i think there's a really strong 80, 90% chance that we'll get a deal this year because the republicans cannot turn this down. they just can't do it. what say you? >> well, the republicans love procedure. they adore calendars and dates and deadlines and budget reconciliation and all of this stuff, and they love to talk about procedure. they love to talk about all this stuff. i still ain't seen a bill, you know? we still don't know what's all in there. we know that the secretary of the treasury said last week that everything was on the table for negotiations except for the provision about the corporate tax cuts. we know that there is -- if the president had to come out today and say there will absolutely not be a lower cap or a $2400 cap on contributions to 401(k)s, we clearly have a lot of -- there's broad space on the field here where this actual
package could come down. stuart: well, he has said that. >> right. stuart: he tweeted this morning, i mean, we're not going to touch the 401(k). >> right. stuart: i keep coming to the same argument, chris. i just don't see how the republican party, one year into, you know, their complete victory in last year's elections, i don't see how they can turn down basic, simple tax cuts. i just don't see how they can do it. >> you're talking about a party that's getting ready to walk the plank on obamacare. this is how bad they are at politics and the problems that they have had. i'm not saying they haven't learned lessons, both trump and his fellow republicans on capitol hill have learned lessons from the indignities of their failures on obamacare because the democrats are about ready to feed it to them. they're aware. so i'm not saying they haven't learned things. but putting procedure ahead of policy, policy should dictate the procedure. they're focused on dates, arbitrary deadlines, we've got to have it by thanksgiving -- no, it's not the first of december, it's actually
thanksgiving. i cannot make an estimate about how quickly this can pass until i find out how much agreement there is among republicans about what's in this legislation. and paul ryan's playing hidden ball trick with his caucus, and they're going to make him pay for it. stuart: there are ten senate democrats up for re-election next november. if they run against stimulative tax cuts, aren't they toast as well? >> i would say that that might be true for somebody like joe manchin in west virginia or heidi heitkamp in north dakota, but i think, by and large, there are -- these, in the states where trump won by huge measure, so now we're talking about indiana, we're talking about north dakota, we're talking about west virginia, yeah, there's definite pressure he can bring to bear. missouri becomes more of an open question. but the, i think can you get eight to get to 60 to make it lasting? no. can you pick you have a couple -- pick off a couple, three, that you might be able to offset if you're doing a 50-vote on online item.
maybe those are spare votes in your hip pocket. stuart: you're killing me with the weeds here, chris, but i think gradually you're coming around to my point. [laughter] i know you are. don't argue with me on this. >> no matter what. absolutely. stuart: democrat congresswoman maxine waters going after president trump again. in a speech she says she wants to take out the president. i think that democrat leaders are actually getting kind of nervous about what their far-left wing is doing to their credibility. you with me on this one? >> absolutely. maxine waters has always been a huge problem for the democratic leadership because she is perfectly safe, and she has clout from her seniority in congress. what she says can get noticed, and what she says is very often incendiary, counterproductive to their larger effort to paint themselves as reasonable stewards of governance for 2018, not to be the party of impeachment and radical thought. stuart: okay. now, one last one for you. the gubernatorial race in virginia. [laughter]
what do you mean by that? i think that the democrats will lose if they cannot bring out the black vote. what say you on that? >> african-american voters, obviously, are a huge part of the democratic coalition in virginia not just in richmond, but also the tidewater area is an enormous component of the democratic coalition. i say right now ralph northam, the democratic nominee, is likely to win. and right now polls on average show him leading by about as much as hillary clinton led in virginia or by as much as she won in virginia in 2016. if democrats cannot show that they have greater momentum than that, it can't just be treading water. they've got to show what they've shown in a couple other places that they've got big momentum in a swing state, six points not enough to give them tailwinds for 2018. stuart: you see, ever so gradually, chris stirewalt is coming around. [laughter] the voice of reason here in new york. you know, you really are. >> i just do what you tell me. that accent just makes me want
to believe. stuart: you're such a snob. [laughter] i'm an american, okay? >> yes, sir. stuart: don't you forget it. chris, you're all right. thanks for joining us, we'll see you again soon. >> you bet. stuart: more layoffs coming at snap, and it plans to slow hiring in the new year. that stock is down to $15 a share. also this morning moody's warning that hartford, connecticut, could default on its debt by next month. that's a very important financial story. how about that? and coming up, frequent guest on the program charlie kirk, his speech at cleveland state was protested. he's with us soon to tell us his story. this is another story of free speech under attack yet again, but he did make his speech. and later this hour we'll be joined by patriotic millionaire eric shone berg. he should be very happy, there will be higher taxes for rich people because that's what he wants. he's back. ♪ ♪ is this a phone?
you get up to 5 lines of talk and text at no extra cost. so all you pay for is data. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. ♪ stuart: remember we told you about that, it was a sea-stained letter recovered from the body of a titanic victim?
i'm going to update that. it sold at auction in england for $166,000. >> whoa. stuart: that's a record price for a letter from the titanic. it was written by a first class passenger on embossed titanic stationery. the letter was supposed to be for the victim's mom. $366,000. -- 166,000. here's more evidence of the challenges facing the nfl, video shows a lot of empty seats in many stadiums. this comes as president trump's been calling out the nfl for the anthem protests. tv ratings also on the downside. look at those empty seats. it's official, justin timberlake will headline the super bowl halftime show. he's returning first time since janet jackson's wardrobe malfunction way back in 2004. february the 4th in minneapolis. look at this, hundreds of dogs in new york city get in the halloween spirit. the big apple holding the 27th annual halloween dog parade on
saturday. [laughter] dogs and their owners dressed up in costume for the chance to win thousands of dollars in prizes, and they clearly went all out. now this, a new report on -- in "the wall street journal." it claims that hackers are targeting schools across the country. they're trying to get student data. important stuff, and we're on it. we're also joined by charlie kirk, conservative. he was, he gave a speech at cleveland state university. he actually got all the way through the speech. he made it through. that's news in and of itself. and he'll tell us all about it after this. ♪ ♪ at fidelity, trades are now just $4.95. we cut the price of trades to give investors even more value.
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you'll still be paying 39.6. right now if you make 418,000, up to a million you get hit with 39.6. stuart: hold on a second. right now the top rate is 39.6%. >> that's correct. stuart: all right. it's not going to come down from that level if you make a million dollars or more. >> that is correct. stuart: so you will pay the new lower rate, 35%, from 418,000 to a million dollars -- >> cha's what i was about -- that's what i was about to say. this comes from axios which is a well-regarded and well-read web site in d.c. yeah, the 35 president rate would apply to 418k to 999k. anybody a million or more, you're going to still stay at 39.6. this is a way, possibly, to get democrats to vote saying you are keeping the upper bracket for the rich. stuart: oh, it's highly politicized because it makes it a middle class tax cut. >> correct. stuart: the people who pay all the money in taxes won't get a break. that'll satisfy the democrats. >> that's correct.
you know, the republican donors are going to get mad about this if they keep that upper bracket. stuart: especially if they get rid of the deduction -- >> double whammy. stuart: and now this, "the wall street journal" claims that hackers are targeting schools across the nation. they're trying to get at student day. hackers have hit more than three dozen school systems this year. that's high schools, by the way. that's not colleges, i believe, is that correct, lizzie? >> yeah, that's correct. stuart: joining us now is a former white house policy director and tech official in the bush administration, and, i don't john, you know all about this stuff. you're the hacking expert. you are. >> that's for sure. stuart: i'm telling you, you are. >> my brother as well who spent ten years at the nsa really firsthand coming to grips with the challenges that we are seeing today on a societal basis. stuart: all right. now, hackers are already into my personal information and everybody's personal information. they're in, they've got it. >> you are --
stuart: there's no protection, i'm done. >> you know, that is a very astute comment. you are exactly right. i get asked by ceos every day how do i protect my network. how do i build stronger walls, beat the bad guys -- stuart: what do you tell them? >> -- from getting access to the personal information of my customers and students as well? stuart: what do you tell them? >> the bottom line is it's the wrong question. the sad reality is that it's too late. the hackers are already in, your data is already leaving. the only answer and the right question to be asking is how do i protect the, so then the data itself, how do i move those walls around the data? because that's your health information, your bank statement, that's what matters. stuart: the moment the walls are around the corporate system -- >> exactly. it's around the perimeter. stuart: the walls around my personal information. >> around every piece of data, e-mail files. because when you think about it, what do you really care about? do you care about a network or
do you care about health information? financial services information? stuart: yeah, but this is how you say you do it. everybody's personal information is protected. on an individual basis. >> that is correct. stuart: the ring around, my social security number, my birth date, all the rest of it. >> for the past 30 years there's been a big challenge, and that data encryption has been too hard to use. and there is a new class of companies that is helping shift the conversation from the $1235 billion that is really snake oil -- 125 being pushed on the companies to say let's protect your device, your network. the only answer is to protect the data and to do it in an easy way. stuart: but you can do it? >> you can do it today. we do it both for the individual user, free software, five seconds to download and install, and data at scale for the fortune 50 enterprise, banks, etc., 7,000 customers really all around ease of use and control because it's not just the hackers on the inside, it's also
the -- when you do business, you have to share your data with then third parties. and so you've got to move the control to that object as it flows. stuart: okay. so the protection goes to the individual -- >> and it is really beginning to then happen. over the past, you know, it took target and sony anding by fax, right? this -- and equifax, right? this whole notion of a cross your fingers, close your eyes and hope for the best is over. ceos are getting fired for this. people's kids' information is being exposed. so the time is right now. stuart: do you think a lot of us have been feeling this for some time, that everybody out there has got everybody's information? is the big hack coming? is the big deal coming where they take down a bank or a whole market or -- >> it is happening every day. right? it is already happened, and some of it has been explained to the
public. a lot is happening very quietly. people are trying to do damage assessment over what is happening behind the scenes. there are -- stuart: do you know of companies which have been breached where the information has gone out and it's not been made public yet? is that true? >> yes, absolutely. stuart: you do? >> but at times it is, it is the responsibility of the company to basically understand very quickly what is happening behind the scenes so that, so that further damage is not done. stuart: but i'm -- i know, i know where you're coming from. >> yep. stuart: from my point of view, you're telling me that i'm going to be hearing of more big data breaches to come. >> yes. stuart: that's going to happen. >> and on the infrastructure level as well. we have got to come to grips as a society with this. stuart: how close are the bad guys to taking down a bank or an insurance company or some major institution whose collapse would be serious, indeed?
how close are they? >> so you have got to be a little bit careful about the kind of when, but the kind of fundamental challenge that these institutions have is understanding what they have in terms of -- stuart: okay. >> -- their data. because if you think about it, just one final point, like this is not all theoretical. it's also coming from the e.u. everyone should be circling may 2018 as a critical date where, essentially, it's a bonding regulation that any company that has any personal information of a european essentially is going to have to give them the right to take it back. which is, in many ways, a positive step in that you're going to have to understand what you have and protect it at the data object level. stuart: that's very interesting. john, thanks for joining us. >> my pleasure. stuart: we all get the impression that something real bad's going to happen. thank you very much. i appreciate it. >> thank you. stuart: all right. protesters have tried to silence
our next guest when he gave a speech last week at cleveland state university. joining us now is charlie kirk. he's turning point usa founder. all right, charlie, you got to speak, and you finished your speech. take me all the way through what happened. >> sure. well, antifa was out in full force. we had about 250-300 students show up, and the campus socialists tried everything they could to shout me down, prevent me from speaking, tried to goal throughout the entire speech. but i endured it, and with rousing applause throughout the speech. what was so amazing is there is a silent majority growing on these campuses of people that want to hear the other side of the argument. they're not hearing it in their lecture halls, from their professors, so when a speaker like myself comes on and i say capitalism is the best way to help people, america's the greatest country in the history of the world and the constitution's the greatest political document written by man, young students say, wow, i never heard that in my class.
the socialists only further distance themselves when they try to shout me down and try to prevent speakers like myself -- [inaudible conversations] stuart: growing body among students that want to hear the other side and are prepared to give you a fair hearing, that's a growing body among the students, right? >> that's right. because the left, everyone they disagree with becomes hate speech. everyone. is so i come on, they don't even know who i am, they're just told that i'm some sort of, i'm trying to incite hate speech. because of that the people in the middle, they might not agree with everything i say, but they say, wait a second, why can't this guy speak on campus? why are you trying to storm the stage and pull fire alarms? it makes no sense. after an hour and a half, two hours having a conversation with these couple hundred students that came with curiosity, we won converts, students that said, charlie, i never would have identified as a conservative, but after tonight i'm all in. i want government out of my life, i want to keep my money.
i definitely don't agree with those rowdy socialists that don't even want to be able to, you know, hear your perspective on campus. stuart: by the way, you were one of the people who signed an ad in "the hill," the newspaper, urging congress to pass tax cuts now. and president trump is really pushing the gop, get it done, get it done now. what's your take on this? you think it is going to happen now? >> i sure hope so. i'm, i've learned this last year don't bet on this congress to get anything meaningful done, but they have to. i mean, if they do not get this done, it will be the death of the modern republican party. and this is going to be on paul ryan and mitch mcconnell to do something they're not used to, work weekends, you know, work nights, get people together, get some compromise and actually get a bill on the president's desk. i can't imagine how frustrated the president is right now. i mean, he didn't get obamacare, very little legislative movement, you know, throughout the chambers this last year. we have to get this tax cut done, and if we do, there is so much idle capital
internationally, we get any sort of repatriation, we're going to finally see that 3.5-4% growth that this economy desperately needs. stuart: i'm laughing because the expression idle capital is just awful, isn't it? capital should work all the time. >> that's right. it should always be moving. stuart: yes, sir. charlie, you're all right. we'll see you again soon. thanks very much. >> thank you. stuart: okay. how about amazon? starting next month customers in some areas will be able to order takeout using their amazon app from local restaurants. not helping the stock, down $12 at $970. we just learned about the potential fourth tax bracket. that would be 39.6%, stays with it is on incomes above a million dollars. next we're joined by patriotic millionaire eric schoenberg. this is exactly what he wants. the rich, he says, should pay more. ♪ ♪ paying less for my medicare?
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♪ ♪ >> i'm nicole petallides with your fox business brief. let the holiday battle begin as the retailers try to drive sales and get you to shop at their place. well, looking at target this particular, here's their holiday plan booker really saying they will start their free on line shipping beginning in november. they will have over 1,000 items under $15, also working on a mobile pay system. you can also see that starting,
that mobile wallet function that will start in november as well. big picture though you are seeing that overall that we will see increased spending for the holidays according to the national retail federation. probably going to be about $680 be, that's roughly 3.6-4% increase year-over-year. target has been a laggard over the last 52 weeks, in fact, it's down almost 10% while both amazon and walmart are up 20%. ♪ ♪ whoooo.
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>> it's morning again in america. and under the leadership of president reagan, our country is prouder and stronger and better. ♪ ♪ >> why would we ever want to return to where we were less than four short years ago? stuart: ah, those were the days. that was president reagan's famous morning in america campaign. that ad, by the way, is from 1984. president trump writing an op-ed in "usa today" titled with tax reform we can make it morning in america again. now, back up a little. there's a group in america called the patriotic millionaires; rich people, millionaires, who want to pay more in taxes. one of those people, strange as it may seem, is with us this morning again. eric schoenberg, the punching bag of "varney & company." [laughter] how are you, eric? >> good to be here again. stuart: you know, it's going your way.
>> you keep saying that. stuart: this tax reform package, number one, we're hearing today about they'll keep the top rate 39.6% on high income earners. you're going to love that. that's exactly what you want, isn't it? >> i would be happy if that's part of the plan, yes. stuart: okay. how about getting rid of the deduction for state and local income taxes? or taxes period? that would make the wealthy people pay a ton more. >> yeah. stuart: you must love it. >> i'm in favor of it as well. look, i'm in favor of tax reform. but my position and our group's position on tax reform is the rich should not be paying one penny less. we need that revenue. and the wealthy already pay much less in taxes. i pay less in taxes than a lot of middle class people. because of the benefits that i get which are not just about the state and local taxes. it's primarily about the lower rates on investment income. i hear no plans about changing that. stuart: right. >> so i'll make a simple bet. i bet when there is actually a plan that's released, i'm going
to pay less in taxes. stuart: okay. now, you're a wealthy guy, but you don't pay much income tax. you don't pay any tax or much tax at all on your accumulation of wealth, do you? your capital gains? you pay 20% or whatever it is. >> that's correct. stuart: would you like to see that go up to 39.6%? >> i think we need to examine the way we tax capital and investment income in this country. that is the primary benefit that goes to the wealthy in this country. that is the reason that people like warren buffett pay less in taxes than working class people. stuart: you know, a lot of us wouldn't mind paying astronomical stomachs of money in taxes -- sums of money in taxes if we were convinced that it really did help the things that we want to help. >> yeah. stuart: but it doesn't do very much good, does it? >> well, again, you know, it's the republicans who are deciding on the agenda. if their agenda was to come in and try and get control of spending, that would be a different conversation. but they're not talking about
controlling spending. all they're talking about is cutting taxes primarily on the wealthy. stuart: if all the money that i have to pay in taxes were to go to improving education, i wouldn't be at all, you know, mad about that. but really it just goes to teachers, the teachers' union, it doesn't go to the kids in the classroom. that tax money is largely wasted on this education system. and you democrats, you're not going to do anything about it whatsoever. are you? >> but again -- stuart: are you? >> the congress and the white house are controlled by republicans. they're the ones who are setting the agenda. stuart: you're telling me i've got to pay a lot more or you've got to pay a lot more, but you're not telling me it's going to be well spent. >> but this is an entirely separate issue. again, if you want to try and address the spending side, why don't they work on addressing the spending side? instead they come in and simply say we want to cut taxes, and we're going to do it primarily on the wealthy. i don't agree with that plan at all. stuart: that will give you
growth. you don't think so? >> no, i don't think it'll give you growth. this is exactly -- stuart: didn't work for george bush or john kennedy. >> let's be cheer. the best comparison is what happened under george w. bush back in 2001, 2003. there was what is likely to occur now, a short-term, temporary tax cut, all right? that significantly increased the deficit. what was the consequence of that tax cut? we had the biggest financial crisis -- stuart: i'm sorry, no, no, you've got it wrong. let me explain something to you. number one, the deficit under george w. bush went down -- >> under his administration? stuart: excuse me. and in his last full year in office, the deficit was $167 billion. >> his last full year in office, not including the -- stuart: that's the truth. secondly -- [inaudible conversations] the tax cuts by george w. bush resulted in 48 straight months of job growth and economic growth. they worked. they worked for kennedy, they worked for reagan, they worked for bush, and they'll work again
for trump if he can get tax cuts to create growth. that's your only way out of some of the problems we've got. growth. >> and we had a housing crash. [inaudible conversations] stuart: if you raise taxes, you get growth. you don't. >> well, we did under clinton -- stuart: he cut capital gains taxes. >> clinton raised taxes in the early '90s,and we had a -- stuart: he cut capital gains taxes, and at the end of the clinton era, there was a recession, in case you've forgotten, and a dot.com bust. that's all part of the equation too. >> this is the problem. all of these discussions about what leads to economic growth are very complicated, and i don't think we have very clear evidence in favor of any of them. stuart: yes, we do. >> the one thing we have -- [inaudible conversations] the consequence over the last 30 years, every time congress has gone to mess with the tax system, i have come out ahead. i have an income over a million dollars a year, and i ask your viewers, you know, have you been
paying less in taxes every time they change the tax code? that's what's going to happen again. >> it's hard when you present it with facts and you don't change your opinion, then you're an id idealogue, right? when you still stick to your opinion, you're sticking to an ideology. stuart: tax cuts under kennedy, reagan and bush created growth. >> that's true. stuart: historical record, sorry. >> let me be clear about something. i think the evidence is very clear the american people are not interested in lowering taxes on rich people. >> you just said tax cuts created -- wait a minute -- >> i'm here to tell you that's what this plan is going to do. >> you just misled the american people saying tax cuts caused the -- >> i'm not saying -- [inaudible conversations] >> you just said that. yes, you did. >> i'm just saying we cut taxes and the end result of it -- >> that's ridiculous. patently absurd. that's -- [inaudible] [inaudible conversations] stuart: i think we have to agree to differ. >> i'm sure we do have to agree to differ. but i would love to come back
when there's actually a plan, because i will bet you it lowers my taxes. stuart: we've got a good shot at that. there will be more "varney" after this. watch out. ♪ ♪ "volatile markets." something we all think about as we head into retirement. it's why brighthouse financial is committed to help protect what you've earned and ensure it lasts. introducing shield annuities, a line of products that allow you to take advantage of growth opportunities. while maintaining a level of protection in down markets. so you can head into retirement with confidence. talk with your advisor about shield annuities from brighthouse financial established by metlife.
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stuart: earlier we reported that u.s. ay sergeant bowe bergdahl may be sentenced today for desertion. now we're learning the hearing has beenedlied until at least -- has been delayed until at least wednesday. he still faces a term in prison, but wednesday is the hearing. now this, very serious story. moody's warning that hartford, connecticut, could default on its debt by next month. now -- >> yeah. stuart: -- is this all about -- >> you know what it's about? it's about pensions, state and labor union pensions. and hartford, it's not exactly the canary in the coal mine because the ca a nary's been gasping for air for a long time in connecticut. they have to renegotiate their debt. they could default on debt as early as next month. they're losing $60-$80 million a year. >> wow. >> their insurance costs and benefit costs have gone up 6% every year for the last ten years, and the revenue coming in has just not met it.
it's an impossible situation. there is belief out there maybe it could be bond hollers may recover as little as 65% on their investment, warns moody's -- stuart: there's a similar problem in new jersey not just with an individual city, but the state is on the hook for these enormous pensions -- >> but, you know, atlantic city was a basket case, remember? we reported that. they cut worker pensions, laid off firemen and cops and lowered property taxes, and businesses came in. i mean, hartford in connecticut, they're a tax and spend democrat state. when you see ge -- >> moving to massachusetts. >> moving to boston, ge moved from hartford to boston -- [laughter] it tells you something, right? stuart: california's in the same shape. >> same situation. unfunded pensions, how do you deal with that. stuart: took the words right out of my mouth. you're talking about trillions, plural, of dollars which cannot be paid but must be paid
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build a better website - in under an hour. free to try. no credit card required. gocentral from godaddy. stuart: my favorite story of the day is about electric cars. dan neil writing in "the wall street journal" did a review of the chevy volt, as a driving experience it was unique, drive it yourself. he turned my head around. >> you would want to test drive it. stuart: i have never driven an electric car. dan neil says it was quiet. ashley: eerily quiet. liz: it surprised squirrels. stuart: at 60 miles an hour he
could hear his watch ticking. he was pinned to the back of his seat when it took off. i want to try this thing. i'm an electric kind of guy. maybe. neil cavuto, electric guy, here you to. neil: for you certainly a lot quieter than a horse and bug by. >> 15-0. neil: they're so quiet. i don't think pedestrians hear them. stuart: are they talking about putting noise on it, so you can hear the things coming? neil: i don't know. i'm just passing this along. out of concern for you. we're talking about a couple of developments, with the president meeting with the prime minister of