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others may be trapped, but also where that school is not in session. >> jon: we will continue to give an eye on that story, we'll let you know the latest update. we'll see you back here in an hour. "outnumbered" starts now. >> sandra: a fox news alert, the president a short time ago reluctantly signing a package of sanctions against russia designed to punish the kremlin were meddling in the u.s. presidential election. the bill passed both chambers overwhelmingly. the white house calls the measure significantly flawed -- the measure could hurt efforts to improve chilly relations between the two countries. the level titan penalties already in place against businesses and individuals, some within vladimir putin's inner circle. he has already responded by
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ordering hundreds of diplomats and staff away from the posts in russia. he also said he may retaliate further. we will bring any updates on this as we get them. another fox news alert, big changes could be in store for america's immigration system, you just heard from president trump at the white house unveiling a bill i would slash legal immigration levels in half. it would put in place a merit-based system for potential migrants. a key campaign promise or president trump. how would this work and what impact would it have? happy wednesday everyone, this is "outnumbered," and jenna smith. here today, harris faulkner, host of kennedy on fox business, kennedy. democratic strategist and fox news contributor jessica tarlov and today's #oneluckyguy, we will come back fox news contributor and political editor of townhall.com, guy benson is here and by the way, guys book and a discussion, how the
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outrage industry caps on debates, manipulative voters, and makes america less free and fun, and paperback now and you are outnumbered. good to have you. a >> guy: that's a mouthful of a subtitle. you might not know this, there's a federal law that requires every conservative book to have a short title and a really long subtitle. >> sandra: if you didn't notice, there's a lot of news to get to, thanks for being here. let's jump right in. a possible shift to how america tackles legal immigration. the proposed law would establish a points-based merit system that gives priorities to highly skilled immigrants and potential job creating entrepreneurs. it caps and no refugee admissions to 50,000. president trump joined by the sponsors of the legislation saying the changes are long overdue. >> it's great to be here today
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to unveil legislation that would represent the most significant reform to our immigration system and half a century. i want to thank senators tom cotton and david perdue for their tremendous work in putting together this historic and very vital proposal. as a candidate, i campaigned on creating a merit-based immigration system that protects u.s. workers and taxpayers and that is why we are here today, merit-based. >> sandra: it's everything you just heard, is it going to be effective? >> guy: i think merit-based immigration priorities are no-brainers. having people that come into this country and put them at the front of the line people who speak english, are self sufficient, have high skill capacity to bring their skills to this country and add to our economy, that makes a lot of sense and as we've heard from some of the senators, that part
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of it is modeled off of what we've seen his mother countries as well. i think cutting overall immigration, legal immigration and half is going to be far more controversial. there'll be economists who say it will have some adverse effects. the counterpoint as it helps american workers and wages, that's going to be sick having a part of this debate. some of the details about ending chain migration as it exists makes a sound policy, but the devil is in those specifics like who is no longer eligible, adult children of u.s. citizens for example, that's going to be another point. >> sandra: we mention the effect this would have on business and economy, how do you see this playing out? >> kennedy: when the economy is doing well, you see more immigration into this country because our immigration system is not functioning optimally.
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when you have a low unemployment unfortunately for small businesses, they need migrant workers an order to do some of the jobs to keep their country going and functioning. labor is a valuable resource and you own your labor. we should end the entitlement and that's not more for people to commit to this country, but if they want to come here and work, cutting immigration and half seems to be a very bad process. >> sandra: the dow jones industrialized 22,000 today. there is obviously confidence here, how do you see this? you've been wanting to jump in. >> jessica: i think what everyone has said is great and the devil is in the details here. exactly what criterium will
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qualify someone to come here? it's smart to talk about canada and australia, to crowd stomach to my stomach my issue is about prices. so if you're cutting out people who are coming here illegally, but are low skilled workers, isn't that going to drum up the price of a product here and have an issue of competition? things will become too expensive for americans within the country, so we need to be focused on that as well. >> kennedy: and he'll abandon your quest for a federal minimum wage? >> jessica: no, never. >> kennedy: it you're contradicting yourself. if you want people to come to this country legally and work for less money, you'll drive prices up and run small businesses out. >> jessica: minimum wage can be raised easily. >> kennedy: its flawed liberal ideology.
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>> harris: any time he talks about immigration which is something that the both sides of the political aisle really don't want to talk about, he furthers this cause he's going to clear the swamp out and do what he has to do. my big question in all of this and having a home in a border state in arizona and looking at how that labor plays such an important role economically is that there are certain jobs where people are coming in with poor skills. i don't see often americans going and taking those roles where i live in arizona. the ability to come across the
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border wanting jobs. >> jessica: they're not necessarily illegals. be will to stomach to my dimmick people come here totally legall legally. >> guy: very quickly, a political point because we're talking about policy which is the most important thing, politically, this might complicate the republican mantra for many years, which is, wherefore immigration, register grants illegal immigration. >> harris: you don't want democrats to say you're for immigration, but against poor people and that's not the point here. republicans have to be careful to make that message very clear. >> sandra: went to leave it there, meantime, house speaker paul ryan calling for action on president trump's proposed wall along with mexico border. on twitter yesterday, the wisconsin republican posting a video up of him meeting with border patrol in texas. ♪
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>> i had the opportunity to travel down to texas to go to the rio grande valley and spend time with border control. when you see what they're up against, it gives you even greater respect for what they d do. they clearly need more tools to do their jobs effectively. that's why we are going to get this done. >> sandra: meantime, that a partner for manned security announcing a bowl wave environmental regulations, big news, speeding up the process of building parts of the wall along the san diego area. i say big news because that has been and caused major slowdowns and as we've witnessed, many projects. that's a big change in all of this. paul ryan has pushed for this video, what did you think? >> guy: is not a surprise because if there was one policy promise that everyone in this country could repeat from president trump, from a campaign, it's we're going to
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build a wall. he said it over and over again. what you think it's a great or terrible idea, he said it repeatedly and it's a top part of his agenda, it's expected. >> harris: i want to go back to where we started, that's big news. you're trying to protect golden and bald eagles and you have that iconic protection laws that have been in place, do you know who's been signing the waiver is? incoming white house chief of staff john kelly. i think that's critical at this point. this bill must be clear, they're not going to waive all, there have been problems with eight hurdles covering up a vast piece of the united states. >> kennedy: it can be very frustrating when you talk about economic process, but the biggest impediment to the wall is going to be eminent domain and these losses that could tie up the process and courts for
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years. anyone who's built a home knows the less that you want to do a stark instruction and then have to start halfway through, you actually leave the country more vulnerable than you set out to in the first place. the other thing is the president the other day was touting that apprehensions of the border were down 70%, part of that is credited to general kelly. one of the reasons he's chief of staff is he's been so effective. if they're so effective with the existing budget and implementing the laws and procedures they already have, it doesn't seem to necessitate a law. >> jessica: i don't think it will be built, never thought it would. it's a 67% disapproving of building a wall. people wanted the wall a lot more than they do today. part of that is because they know the president's rhetoric and what general kelly has been doing is camping down on illegal immigration. there's been awareness for that
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and people have other priority issues. that one health health care, tax reform before they care about that border while going up. >> harris: it is important to point out that the man who's not going to be leading the staff of the white house is already on an issue that is so important and has been productive on that. previous reporting was that he might be talking the president out of this. his actual steps would lead you to indicate that he's helping the president get this done. >> kennedy: he said people who attacked him for what he was doing, these are the laws the past. if you want them changed, go and change them, i'm just enforcing them. he may have a different strategy is chief of staff, one that is more passionate than political because he said he was essentially a political and doing what he was told.
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>> sandra: the house is already approved a $1.6 billion to get this started. it's something a lot, but then you think how long can it last? >> guy: another drop in a bucket. >> sandra: senate majority leader mitch mcconnell drawing a line in the sand after democrats threatened to derail tax reform. mcconnell now says republicans will pursue a tax bill on their own. how that may play out, plus the u.s. testing its intercontinental ballistic missile and it steps up tensions with north korea. what should be the administration's strategy now? and it's happening today, after the show, he can join our live chat by clicking the overtime tab at foxnews.com/outnumbered or go to facebook.com/outnumberedfnc. we have lots of fun there. you can tweet us during the show, we'll see you there. 80 percent of recurrent ischemic strokes
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hey you've gotta see this. cno.n. alright, see you down there. mmm, fine. okay, what do we got? okay, watch this. do the thing we talked about. what do we say? it's going to be great. watch. remember what we were just saying?
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go irish! see that? yes! i'm gonna just go back to doing what i was doing. find your awesome with the xfinity x1 voice remote. ♪ >> harris: welcome back. mitch mcconnell says republicans will go it alone on tax reform. this after democrats sent a letter with a list of demands which includes dropping the 51 vote threshold, budging not to cut taxes on higher earners and a plan that one add to the deficit. mcconnell says the g.o.p. will pursue tax reform without trying to win over democrats. watch. >> we will need to use reconciliation because we have been informed by a majority of the democrats in a letter i just received today that most of the principles that would give the country growing again, they're
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not interested in addressing, so. >> harris: chuck schumer warns republican so they could see a repeat of the obamacare repeal failure if they don't bring democrats to the table. >> there is hearing stomach committee markup, amendments, and a robust debate with input from both sides. we would plead with our republican colleagues not to make the same mistakes they did on health care. and try to do it by themselves. they're going to have a very similar result. >> harris: this is interesting because it almost sounds like a veiled threat, what does he mean by that? >> guy: he means we want our ideas in play and not so many of your ideas. if you can get to 50 votes plus one, you have the same problem we run into with health care. i'm not sure that's going to be the case. i suspect republicans will be more united on tax reform, although i think some of the details will be relatively
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difficult. i would say this, the notion that the democrats are putting out the demand that there can be no tax reduction for wealthy earners is preposterous and a total nonstarter. the top 1% of wage earners in america paid 39% of all federal income taxes. the top wage% pay 70% of the entire tax burden. if you're going to talk to , cut taxes, rich people will benefit from this in some way or another and to say you can't have that right out of the gate, it's ridiculous and the republicans are right to say absolutely not, we are going to this ourselves. >> harris: and makes me scratch my head because there are a number of democrats who live in that 1%. >> jessica: definitely, bill gates, warren buffett, these are all billionaires and they make tons of money and say they're willing to pay more taxes. i don't disagree.
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we had a very successful economy under democratic president who paid 36% tax and set up 39% on the top 1% and that's doable. i do think republicans are mitch mcconnell saying we're going to go it alone went after what happened with health care is not a smart tactic. i think chuck schumer basically making it nonnegotiable is also not smart. >> harris: look at the dell today. it looks like wall street might have faith. >> kennedy: the court is definitely before the horse on wall street and that can't be the only indicator, but i think they do show signs of optimism. they have to cut spending. they have to cut spending, they have to cut taxes.
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the idea that you can cut taxes on rich people because middle class and lower income earners will get jealous is nonsense. that's bernie sanders being overly emotional. let the economy grow. >> sandra: going back to your point about wall street. the dow hit 22,000 for the first time ever today. there's an enormous amount of optimism, but then you hear a lot of stuff being thrown around like if they couldn't get health care done, they won't get tax reform, which i don't understand how the two are related. i think the markets don't understand that idea either. >> kennedy: i think you can get some of those red state democratic senators, like joe manchin, heidi heitkamp, and joe donnelly on board because they want those three aspects. you could get people like that on board.
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>> harris: i can back to what you said, they don't necessarily need to work something out on this one. >> guy: if they can get 50 votes, though get it done and that's why mitch mcconnell is saying we fell short by one vote on health care, events can bank that we will be able to do it again, but i think that's a risk by schumer. frankly, he might be powerless. this is a reconciliation issue. less but it would make about deb is neutrality, it's really important when you look at the scores of these things, static scoring versus dynamic scoring, these are really in the weeds, sort of policy issues, but if you just do the math of deficits and that sort of thing without accounting for economic growth, that would result in civil vacation of the tax code, that score is worthless. john kelly has already reached him democrats.
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whether he can do it and how important that it is. we'll talk about it. also the bipartisan effort on capitol hill to shore up health insurance markets. republicans reaching out to democrats, i feel he can keep that. can i get real action? that's the question. i like this song. ♪
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americans afford coverage. senator susan collins believes they should have done this from the get-go. >> i'm very happy that the health committee will be holding bipartisan hearings to look at to produce what i hope will be a series of bills. this is the approach we should have taken from the beginning. >> sandra: the bipartisan effort comes as president trump is threatening to help those subsidies in hopes of forcing democrats to make concessions. here's senate minority leader chuck schumer's reaction to that. >> why would he do this? why would he raise people's rates when he was only stated reason is petty, as childish, is on presidential? you don't hurt innocent people mr. president. that is not presidential, that
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is not what an adult does. >> kennedy: all he does is flap his gums. every time we see him, you can turn the sound down and he would be saying the same thing. you know it hurts? you know it's on presidential? cracking allow that so complex so people lose insurance and more people start dying. that's what's immoral. >> sandra: can i transition back to this question what can i get this done question marks before i think they can now after what happened with the health care bill. i think it's a good sign, but i wish the democrats would have shown up when the g.o.p. bill came out with their own revised obamacare bill. that integrated some premarket concept. when you say they ramp to this build on their throat, that wasn't the case.
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president obama knew he had the a majority get something throug through. i think he wants to save this law which bears his name. >> harris: he said don't help the republicans. >> guy: can i point out that this is a law that is continuing to fail and it's getting worse, and despite the fact, setting aside the fact that we've had 105% premium increases over the last four years on the federal exchange, even if you ignore that, you still need these essential bailout funds just to keep the stable markets, which are unstable remotely afloat. that would require injections every year to get this thing floating. i understand a lot of republicans are saying if you get rid of the destabilization funds, if you don't pay the
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subsidies, payments are going to go up a lot more and people will lose access. the issue with this is republicans still won these elections are repealing obamacare, you have to extract concessions out of the democrats in exchange for doing this, of the wise what will you do? >> harris: at 45 times, he through creative executive authority and made major delays or major fixes to obamacare. clearly he knew from the get-go that there was going to be problems. you start tinkering with something from the very beginning -- >> sandra: this should have happen from the very beginning, democrats are saying let us work with you, let us get this done together. >> jessica: i think it's a mistake. i've been saying this for two years since i started appearing on fox news.
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there are a lot of democrats to feel that way, i just think punishing democrats or republicans up until this point have been petty or partisan is a mistake, we are trying to help here. we've talked about this a bunch, this isn't a normal issue where it doesn't matter. >> guy: all of the solutions the democrats oppose -- 's before it you can't claim it on us. >> kennedy: they were injected with full strength heroin from obamacare and on they can get off needle. general john kelly facing several challenges. "abc news" pointing out that one of them includes getting establishment republicans, both party operatives and lawmakers in his agenda. that follows the departure of
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former rnc officials of reince priebus was fired last week in sean spicer who is starting to leave by the end of the month. now course, general kelly is contending with the way the president takes lawmakers to pass. most recently, after the unraveling of the health care reform vote. the two prominent republicans are sounding quite optimistic. lindsey graham sing in an interview, he is hoping general kelly will help the president hone in on what matters most. graham says focus like a laser on trying to rally the congress about working with governors of both parties, coming up with a new way to deliver health care, discipline is what i'm looking for. and newt gingrich saying he understands the congress very well. kelly brings order and effectiveness to white house operations. guy, i want to ask you. there are so many hopes placed on general kelly, there are so many great expectations and when you hear the way people from both parties, particularly some
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of these establishment republicans talk about him, it's almost like they're talking about a new president. >> guy: a few things, he's trying to mend fences apparently with republicans and the establishment. there's a new piece out today in "the daily beast" saying that kelly is already on the phone reaching out to pelosi and schumer as well. this is a new approach, a new day for the chief of staff, what we are seeing so far, he is pretty empowered. he's keeping closer tabs on who has access to the president of the oval office, that's important in terms of having manageable discipline within the white house, he is also fired anthony scaramucci or forced him out right out of the gate. the question is, does it have lasting power, does it have staying power? we've seen this before, it's a new trump. they pressed the reset button and it's a new dawn. and then things backslide. the hope would be for a lot of republicans is that kelly imposes some discipline, it has positive impacts that the
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president tangibly notices and says this approach is helping me and therefore, let's keep it in place and i'll be committed to it. >> harris: it's like general law and the lighthouse. for those of us a group of the military, we saw that. what it is is i'm going to make a priority mission today, and i'm going to follow through. >> kennedy: it's with members of congress. you're going to keep them from burning out, how do you do that? >> harris: kelly? this is a guy who stepped into the fold them the trouble ben was going south on the president rolled it out. again, he's going to start with mission one and build what we know our military leadership does. i have all the faith and the role that they can get there if he is doing his flowcharts and people are going through him. what will cause this to fail is if someone goes rogue. i don't know what could be.
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it could be any number of people who think they have more access to the president that is wise for new leadership in the white house. i can answer that. >> sandra: obviously we heard from newt gingrich, there are longtime supporters who think this will bring them to the white house. what confuses the emergent people is the messages coming out of the white house and they continue to be ordered. there is no chaos in the white house. when you get these major recess that you are referring to, it says there's some sort of mess to clean up. >> guy: no one believes when trump says there is no chaos here. when he tweets there's no chaos and then scaramucci is out after two days, people understand that things were not going well, there's too much chaos. even many trump supporters are saying we're frustrated, not necessarily the president, but the fact that things are on track for his agenda and things i could help this agenda get
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back on track should be welcome in terms of a development or trump supporters. >> harris: i hope he gets a honeymoon. >> jessica: i am hopeful that this will last longer, there will be some continuity, there are ways for him to do other things like help president trump get towards his border wall or his goals that satiate him and then he can keep things calm or stay off twitter a little bit more because he's getting things that he wants. the speaker the white house defending president trump denying reports that he dictated his son's initial statement about a meeting he had with a russian lawyer during the 2016 campaign, what are the media blowing us all out of proportio proportion. that's coming up next. hi.
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stepped in to defend president trump after a report claimed he personally dictated his son donald trump juniors initial meeting he had with a russian attorney. here's what kellyanne conway had to say earlier today. >> the president did not did take the statement. he weighed and as a father would do if his son is being attacked. i will also go back to what we're really, really talking about here, what came of that meeting last june and 2016 before i win the campaign? elsa nothing came of it. >> harris: sarah huckabee's sanders slime tomato yesterday. she said there focus alleged is too far. watch this. >> everybody wants to try to make this at some story about misleading. the only thing i see misleading as the years worth of stories that up and feeling a false narrative about this russia collusion and based on a phony scandal and anonymous sources. if you want to talk about
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someone who's been tough on russia, look at president trump. he wants more fracking, more coal, more energy, a stronger military, stronger defense. i think the distinctions are very clear and you want to create a narrative. >> harris: 45 seconds that ran in its totality. president trump's lawyer also spoke on the matter, saying the president was not involved in the drafting of that statement. guy, that's where you started. during the commercial break, yuri said you remember that. >> guy: we've seen it with this story over and over again, the donald trump, jr., meeting with russians last summer, i guess it was. when you have sarah huckabee sanders out there saying, this is a false narrative from the media, it does not help your cause when you have perpetuated a false narrative about what happened at this meeting on the lead up to it and subsequently after it. if the president's lawyer said
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he wasn't involved in all drafting the letter and now the white house is backing off of that and saying, he was just giving his input because his son was in trouble. if the president didn't know anything, about that meeting, and these circumstances surrounding it, as they claim, why should he be given any feedback as to a statement that they are crafting to explain what happened and something he didn't know about? >> harris: it jessica and kennedy are both nodding to what you're saying. >> kennedy: that's absolutely right and this is one of the problems ann coulter has had. where is the separation? you have to have some. you have to have some current departmentalization. if you're too emotionally defensive of your adult children, and you cannot be so closely tied to your political life, which is vastly different than a business life.
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>> harris: does in the president have a right to defend his son? we saw eric trump to that earlier this week. >> jessica: it's different to defend your child and to live for him or to complicate your own situation so drastically. their legal team wanted an honest response to what happened here. it was going to come up at the meeting occurred, they did not want to say it was about child adoption, which anyone who knows anything about bladder output knows he wasn't there to talk about adoption it doesn't allow you to focus on your agenda and it allows democrats and frankly a lot of republicans as well and moderates to talk about russian collusion because don, jr., accepted a meeting with a woman who said we and russia want your father to win this election, i'm coming to that meeting, i have opposition research on hillary clinton. >> sandra: i look back on huckabee sanders statement saying you want to greet a
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narrative but doesn't exist. as kellyanne conway made a very clear picture of this, the president weighed in the way any father would defending his son. >> kennedy: how do you know that? if my dad had no idea about a business meeting, i wouldn't sit there and let him write my defense. >> guy: it's the changing story constantly about this particular incident. if you are out there telling the american people what happened in that explanation changes multiple times -- >> kennedy: it's a distraction, we need tax reform, winning health care. stop making blanket denials that complicate your story later on when you have to change it.
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>> harris: i have yet to see a democrat say there is any evidence of a collusion. as tensions rides with north korea, the united states test firing its own intercontinental ballistic missile today. meanwhile the secretary of state says the u.s. has talked with north korea, but only if it's abandoning its nuclear program, is that really going to happen? whether diplomacy is a way to go or if pyongyang only understands military forces. stay close.
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>> sandra: more of this wonderful "outnumbered" in just a moment, but first, jon scott will that's coming up in the second hour of "happening now." >> jon: president trump signs tough new sanctions on russia, iran, north korea, but he has some reservations. plus, the president is dealing with a growing threat to north korea as analysts are increasingly worried that the dictatorship may on the verge of another nuke cast. gordon chang joins us. all that and more ahead. >> kennedy: the united states
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is willing to talk to north korea, but only if it abandons its nuclear program. here's rex tillerson. >> we do not seek an excuse to send our military north of the 38th parallel and we try to convey to the north koreans we are not your enemy, we are not a threat, but you are presenting an threat to us. we hope at some point, they will begin to understand that and we would like to sit and have a dialogue with them about the future. >> kennedy: this coming on the heels of the north korea test launching two missiles last month. experts say could reach u.s. soil and what the military is calling unprecedented levels of submarine activity which could mean the northwest to carry out launches from the sea. it flew more than 4,000 miles, the air force says the launch was long planned, but it certainly comes amid a very high tension.
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what do you think the possibility, what sort of probability that north korea will abandon this nuclear program in order to talk with the u.s.? >> guy: zero. of course, that's what you have to say and i would point out that diplomacy and antinuclear talks have resulted in a nuclear north korea, so that was a failed policy dating back decades to the clinton administration. here we are today where rex tillerson is coming out and saying if you give up your nukes, we'll talk and you'll be a player on the international community. kim jong-un's going to have no part of that which is why you're seeing missile tests for months, also saying we have some stuff to back up our words here, fyi in case you forgot. we can crush you if necessary. >> kennedy: i hope it's not necessary. that's the worst. where'd he go from here? at sarah huckabee sanders said all options are on the table. the secretary of state says we do want regime change.
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>> harris: going to war basically is what they're talking about, leadership in the military are telling me that it's not a binary decision. we aren't there yet and that is absolutely not where you want to go. there is a lot of blood and treasure spilled in that region trying to protect south korea in particular. that's not what you want to see destroyed. there's got to be another way. and comes china, what are we doing? you see the president do some creative things to motivate china. when is he going to loose his patients? we understand it could be close. >> kennedy: china is the key here. >> sandra: leverages the big question. as far as going back to your
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comments, i'm trying to get what you're saying there. you say the u.s. should not be engaging in talks with kim jong-un? >> you're always trying to reach out. you have to be realistic about the likelihood of those conversations going somewhere and you have to be wary of previous conversations that you've had that have turned out not very well for the free world. >> kennedy: kim jong-un gets so much attention, that i think that alone and the addiction to attention -- they're never going to abandon the nukes. >> jessica: why would they? i just got back from a conference in japan talking about how to strengthen u.s. japanese alliances. they were talking about the relationship. there is a representative from there a dod and they do have great faith that the u.s. will remain their strongest ally, but
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they need to see more of us there. they're in a line of fire as well, such as north korea. >> harris: militarily, what are they doing? >> jessica: the japanese are, for what their capacity is, they're arguing what they can. >> sandra: we have so much to discuss. with hydrogenated oil...
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>> many thanks to guy benson, always good to have you. we are back on tv tomorrow at noon eastern. "happening now" starts right no now. >> molly: of fox news alerts from fox news global headquarters in new york, the dow hits record milestone as it crosses the 22,000 mark for the first time ever. >> jon: stronger-than-expected results from companies like apple helped put the dow over the top. president trump counting this major a accomplishment while making remarks at the white house. we are covering all the news happening now. the united states sends north korea and other would other would-be aggressors on message about its own military might. >> as a candidate i campaigned on creating a merit based immigration system. >> jon: president tru

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