tv The Journal Editorial Report FOX News December 17, 2017 12:00pm-1:00pm PST
>> welcome to the journal editorial report, republicans reached a deal on tax reform setting the stage for a vote down from 35 percent now while the top top individual rate would drop to 37% from 39.6. in a last minute tweet to bring marco rubio on board expanding access to the child tax credit for low and middle income families, donald trump gave his final push for overhaul on
wednesday. >> as a candidate i promise we would pass a massive tax cut for the everyday working american families who are the backbone and heartbeat of our country. now we are just days away, i hope, you know what that means, right? keeping that promise and delivering a truly amazing victory for american families. we want to give you, the american people a giant tax cut for christmas. >> wall street journal columnist dan hettinger joined the panel, and editorial writer kate odell and assistant editorial page editor james freeman. you followed the ins and outs detail on detail, good tax policy, good reform or not? >> a major improvement on the
business side, structural reform, 35 to 21 and territorial system where it is earned instead of taxing it twice when it comes to the us. >> expensive on new investment. >> extended by congress but this is a marginal improvement on the individual side but not really a reform with the same deductions and credits but on the whole represents progress. >> significant pro growth on the business corporate side, individual side most people will get a tax cut, maybe not some of us in new york or california but most, just not as much reform. >> given what we had every right to expect when donald trump was elected this is fantastic. >> what is that trump line
about? >> point being we are moments away, we will see but this is a major step forward, not perfect but the united states becoming competitive again with the rest of the world, we went through a long period where companies didn't want to be here, found various ways to get out of the united states, jobs were not being created and this is a real change and markets have been reflecting that and you are seeing economic growth pickup, investment pickup, finally the us is competing again. >> that is the wager that this will be reform that improves the productivity, underlying productivity and growth potential of the american economy that will draw it. capital increase business investment which during this expansion has been historically low. if you do that you can keep this economy moving, keep wages going up at a faster pace even as the federal reserve raises interest
rates. >> it is such a better way of doing it, this is the right strategy, donald trump came into office and his initial strategy for tax reform was to the rate companies for leaving when you can't blame them for doing so. the better way is to create infrastructure that is progrowth tax policy and encourage companies to stay or expand or invest from a new perspective and services dovetailing with important trump initiatives like deregulation, a boom in the energy sector and that will help american competitiveness as well. >> why is the individual side disappointing? >> it is disappointing because they never reduced rates that much of the child care credit in their by marco rubio to join
them and the top rate doesn't come down all that much. >> incentives to invest and work hard are not there. >> not on the individual side and part of the reason is they had to keep this in a 10 year budget. $1.5 trillion they were working with. that much of the tax-cut. one way or another inside that ceiling, the individual reform suffered by pushing the pieces of that. >> they didn't want to make the tax code any less progressive. we have a very progressive tax code, people with higher incomes pay almost all the taxes, they didn't want to change that so had to finagle it in a way that didn't cut rates. >> it is jerryrigged in that sense but one word for lowering it from 39 to 37, we have modest growth nothing like, no one
expects that but what it does do is assemble the top rate is not permanent. if republicans declined to lower the top rate and lowered it to 38 and house didn't touch it and in some cases increased it. this represents some progress republicans can fight another day on this question. >> you have a few disappointments? >> i would love to have seen a much cleaner bill. i understand why they did it, to have the support of house republicans from high tax states but we have a $10,000 deduction on state and local taxes. i wish marco rubio had not gotten his childcare tax provision because let's be honest, this is redistribution policy taking from some taxpayers and giving to others,
should not be good conservative policy and not progrowth policy, ads nothing to growth and discouragement from people working. >> big victory in repealing the individual mandate. >> the whole thing is a big victory, more than we can expect, donald trump is a rookie at this it has delivered you have to call a huge win on the corporate side, even the individual this will exceed people's expectations when they see more simple filing and withholding. >> the man who appointed robert mueller faces a grilling on capitol hill it will be released concerns of bias in the special counsel's russia probe. us. it's what this country is made of. but right now, our bond is fraying. how do we get back to "us"? the y fills the gaps.
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anti-trump texts, conflict of interest free special agent of the fbi, this is who we were told we needed to have an objective impartial fair conflict of interest free investigation. >> the man who appointed robert mueller faced a grilling on capitol hill this week, deputy attorney general rod rosenstein told the house judiciary committee he sees no reason to fire mueller despite growing republican concerns of bias in the russia investigation. the justice department released 90 pages of text messages exchanged last year between peter strzok who was later assigned to mueller's team and fbi lawyer lisa a page. the anti-trump text describes the possibility of his election victory is, quote, terrifying. do they go beyond political antipathy? let's try to put this into some
context. why should we care what we are discovering about members of the special counsel's team? >> defenders of mister mueller have quickly pointed out there's nothing wrong with an fbi agent having a political opinion and that is true. the question is whether the hostility expressed in these texts go beyond that to a bias and whether there is any evidence that the agency was willing to act on that hostility. one text message in particular talked about the importance of having an insurance policy in case trump were to win the election. there are a lot of thoughts about it, would this be the dossiers they were using or something else? was the fbi actively trying to thwart trump's presidency? >> i want to go into that and read that. let's show that which i want to believe the path of consideration that there is no
way he gets elected but i am afraid we can't take that risk. it is like an insurance policy in the unlikely event you die before you are 40. what does that mean? insurance policy? how should we read that? >> it is deeply disturbing. on the face of a reasonable person would look at it and say it looks like this guy thinks his job in life is to protect all of us from the consequences of our political decisions just in case dumb voters choose trump, the fbi needs to intervene. maybe it doesn't mean what it seems to mean. mister strzok if he doesn't dodge it should have the opportunity and explain what he meant by this. on the face of -- >> another element of that, andrew mick -- andrew mccabe, there was a meeting in his office and we all talked about
the election and what were they talking about? beyond opinion the question is did their line get crossed into some kind of active action or plotting or something like that? we don't know that but these texts are disturbing. >> they are disturbing and christopher ray appeared before congress and answered no questions about any of this, nor did rod rosenstein. the fbi and the permit of justice are waiting into deep water here. we are asking these questions, the american people have these questions, robert mueller has an investigation of donald trump going on, it is looking like there was some sort of internal conspiracy against donald trump. i know it -- what i'm trying to say is eventually you are going to get to the point where the american public is going to start asking these questions and
confidence in the fbi will be below a level the justice department doesn't want to go and the burden is on them to make sure that doesn't happen. >> you and i agree donald trump should not fire the special counsel. that would be needless provocation and very bad idea politically but on the other hand the special counsel has an obligation to basically make sure when he presents evidence and cases they are credible not only because if it is a legal case he has to convict somebody in a court of law beyond reasonable doubt but if he makes a recommendation to congress for example you want people to think this was based on judgment by people who are fair-minded. if that confidence is undermined by these actions we are in a pretty bad place. >> how can it not be? this is not isolated.
we also have an entire wrap of stories about other people on the team that would appear to be pro-clinton and we assume anti-trump, services undermining confidence and this is important too. these strzok text messages have been known about by rod rosenstein and robert mueller since july and they know the amount of attention congress is putting on this issue and deliberately kept them from congress for four month, that undermines their credibility, looks like they have something to hide which they apparently did. >> what recourse does congress have? >> they need to start issuing subpoenas, more subpoenas and enforce them in this is where it is going to be difficult because when you have an fbi and justice department that seems to not want to cooperate, not respect the oversight role of congress
and the executive branch congress is going to have to jail somebody if they will not respond to a legally issued subpoena. >> the president of the united states is the chief law enforcement office of the united states, can he would of them to turn over the documents? >> he theoretically could order them but you see the difficulty of donald trump doing that. we are getting to a crisis, and institutional crisis that if the fbi leadership, justice department leadership feel they should start telling the american people what happened during the election. >> still had a major terror attack narrowly averted in the heart of new york city. a failed pipe bombing a wake-up call and does the post-9/11 status quo need to be re-examined? we ask a former top intelligence we ask a former top intelligence official patrick woke up with back pain. but he has work to do. so he took aleve.
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>> a failed terror attack in the art of new york city has law enforcement officials across the country on high alert. 27-year-old akayed ullah has been charged with federal terrorism offenses every detonate a pipe bombing in underground subway passage during the morning rush hour. he told investigators he, quote, did it for the islamic state. nate silver served as director of intelligence analysis for the new york city police department. welcome. glad to have you here because you predicted this would happen 15 years ago. i give you credit for that. you were saying you did a paper called the radicalization, homegrown radicalization and we've seen in the last 15 months in new york alone three cases like that.
what is going on >> it is unfortunate when you're a cassandra and you are correct. we spent a lot of time looking at the trendss in europe in 2004-2005 seeing how the threat was changing and based on what we were learning in new york we realized the trends in new york are not that different, just a little further behind and that was the purpose of the report at the time, to ring the bell and say wait a second, a muslim immigrant to the united states integrated better here than in western europe, that is part of the american dream, we are a melting pot but that doesn't mean they are immune to radicalization and we should be concerned because that is the story of coming here. >> after 9/11 the court -- you guys sound -- stopped a couple of attacks that there's a long
period where there weren't any, the one guy in times square who tried to exploded, and failed but there were not a lot of other attempts, now in the last 15 months we have had three so is this just a coincidence do you think or is this the kind of thing we are going to see more often? >> it is a question that is appropriate to begin to ask. when you think about 9/11 to 2016-17 you went 16 years without a successful attack in new york city and if you are a bad guy looking at new york city new york city looks and vulnerable. there is the shield around the city. on october 31st that shield was pierced and it was demonstrated that an attack can be carried out in new york city and we have less than six weeks later a second attack, the first suicide bomber in new york city.
>> that is what he was attempting to do and he was incompetent and we got lucky. >> only the fact that he couldn't make it work but there's nothing to stop him from exploding a few blocks from here. >> is the nypd as you observed doing something differently now than it did in the past? >> there is a political question that has to be asked, bill diblasio ran for mayor, he ran to some degree against the nypd. that is who he positioned himself against and shortly after coming into office a lot of media attention was garnered because they issued a press release when they shut down the demographics unit. don't know how many times when the unit of half a dozen people is shut down, justified a press release. >> what did that demographics unit do and why was it important?
>> one of the things new york city learned from 1993 when former police commissioner ray kelly was the commissioner, you need to understand people from other countries might come and lay low before they launch and attack. before the world trade center attack they might be in places in jersey city. >> where do they hang out? where do they stay? >> where are you likely to find people who are co-country men? think about it. when the attack happened at the boston marathon, two individuals of chechen background, in new york city where with these guys go if they came to new york city. >> that increases the chances of getting a tip, getting some information, preempting something as opposed to afterwards trying to put
together what happened. >> we would have been positioned well in brooklyn to detect a car with massachusetts license plates showing up to new york as they haven't thought about doing. >> the nypd response to that saying we are not doing anything different, demographics didn't matter that much with the surveillance we need to come out the respond to that? >> i'm no longer there. i don't know what they are doing. people i trust and speak to, and if anything, when you are dealing with -- >> they are not meeting in a bookstore or mosque or someplace but the demographics have important purposes and the question is nypd and fbi said he was not on our radar. why was he not on the radar.
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>> stunning setback for senate republicans as roy moore was narrowly defeated by challenger doug jones in alabama sending democrats their first senate seat in that state in 25 years which what lessons can republicans take from roy moore's loss and what will this majority mean for the republican agenda going forward. we are back with kate odell and james freeman. dan, is this going to hurt tax reform? >> i don't think it will have a big effect on tax reform unless it rolls into the next year. it puts pressure on them to get it done this year, luther strange from alabama can vote for it. >> what about the rest of the republican agenda going forward, tax reform passes but they seat jones, what does that loss of one senate seat mean? >> look how difficult it was to
get anything done with 52 senate seats. the budget issues they are going to need democratic votes, democrats have the wind at their back. that will be much help to senate democrats especially in the area of a supreme court nomination is going to be very difficult if anthony kennedy were to retire. looks as though donald trump would not be able to nominate another justice in the scalia mode because then lisa murkowski and susan collins would push back against that. >> would much harder. if you only lose two votes on the judicial question you are done. the nominee would be defeated so the pressure will be on if they nominate somebody who has a little more, like justice john roberts or anthony kennedy's and scalia. >> it also has an impact on lower judges as well. as of this week the senate has confirmed 12 circuit court judges which is the most in the
first year of any presidency since circuit courts were created in 1891. an amazing establishment and they better keep the pace up coming into the new year. >> what about the rest of the agenda talking about welfare reform, entitlement reform, infrastructure spending. most or all of those will take 60 senate votes. maybe they can do one more reconciliation bill to get 50 but even that was 51 will be tough. >> you turned a reliable yes vote for the republican agenda into a know or maybe not. we will see if doug jones has any interest in reelection. >> it is a no. >> probably a know. at the margin it probably hurts them this year in terms of their legislative agenda but it helps republicans long-term. the democrats wanted to run against roy moore in 50 states and a won't be able to do that
now so long-term probably not a big negative for republicans. >> the striking figure i saw in this race was donald trump's approval rating in alabama which is one of his best states was only at 48% in the exit poll for the senate campaign, 62% when he won, went from won in 2016. if he is at 48% in alabama we know he is under 40 in all kinds of important states where senate candidates and house candidates are going to run. what does this tell us about 2018? >> we know how much that hurt republican candidates. don't forget the alabama race comes on the heels of virginia and the gubernatorial race. gillespie who was a rocksolid candidate could not pull out a victory, he got crushed in that race by the democrats and huge amounts was because of suburban voters who were republican leaning but just very unhappy
with the president, his approval rating is very low. it is worrisome, more than alabama, that is an anomaly given the poor candidate quality down here. even an amazing candidate like gillespie and they are dragged down by donald trump, there is a likelihood republicans lose the house and the senate next year and this is something the president needs to be worried about more than his twitter feed. >> especially for 2018, democrats are feeling good about this because the standard political analysis suggests a maybe building a wave towards 2018, the president's approval is below 50%, the generic ballot, asking whether people prefer republicans or democrats is going with the democrats at the moment. democratic donors are enthusiastic, they will start spending money to support some of these candidates. 2018 will be about turnout, democrats will be out there
working as they did in alabama to turn their voters out, then you have republicans back on their heels so at the margin where these elections are decided democrats are at the moment running uphill. democrats in 2018. >> if you look at the map for democrats it is a tough map, they have to hold 26 seats and they have to flip arizona and nevada if they want control of the senate but that looks possible because of changes in nevada that made it a more blue state in the past we 6 years and in arizona we have another bannon backed candidate that could repeat the mistakes of alabama. >> you mentioned the word bannon, steve bannon, is he back roy moore, he said it was a test of the republican, whether you support the establishment but his credibility was not helped by backing such a flawed candidate. >> this is a useful wake-up call
for republicans. look at this race and even if you like roy moore he lost come you got to win seats to affect policy. you have theirs reconsideration of this idea there needs to be a rebellion against mitch mcconnell, senate majority leader. look at the history of the conservative movement, it was about taking over the republican party from liberals in manhattan who had taken it over. mitch mcconnell was not a liberal, he set a record on getting conservative judges on circuit courts, he's about to get a tax cut so this is not the problem in washington, not that he doesn't have his faults but i hope is a reconsideration. >> steve bannon is more interested in being a kingmaker than a conservative policy victory. still had donald trump takes on still had donald trump takes on senator kirsten gillibrand
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>> donald trump taking on senator kirsten gillibrand in his usual understated style attacking the new york democrat after she called on him to resign over allegations of sexual misconduct of the president tweeting lightweight senator kiersten gillibrand, total flunky for chuck schumer who would come to my office begging for campaign contributions not so long ago and would do anything for them is in the ring fighting against donald trump, very disloyal to bill and crooked used. we want to go back to 140 characters. you can say this is a distraction but there's a political strategy democrats are developing. >> there is a lot of talk about fake news, this is fake
politics. kiersten gillibrand's argument that suddenly after being part of the clinton machine she is appalled by sexual abuse of women that is topic a for her apparently after ignoring it for years. >> isn't it good politics? bill should have resigned in the 1990s, throwing the clintons under the bus, hoping to run herself on this theme and saying i am going to run to mobilize women against trump. >> she is saying is that 5 minutes after her clinton pals are no longer politically useful. we didn't hear a word about this for a decade or more but the clintons are gone. the game to make this the war on women seem all about trump and pretend what he said was a
sexist comment, even if you go back to his campaign launch in 2015 this was the premise of his candidacy talking about politicians who will do anything for money and to buy them off. that was the heart of his message, nothing to do with gender. >> democrats are cleaning their own house, al franken, john conyers, anybody who pops up, any man accused of sexual harassment, they are gone. because they think this is a good issue against trump. >> it is a good issue against trump, but gillibrand is making a political transformation from her old moderate persona as a blue dog democrat and is trying to lurch westward. i would note that hillary to the extent she could would reduce a lot of issues to gender identity, had a lot of flaws but to the extent she made every think about being her
qualifications of having two x chromosomes didn't help her. >> that could be a mistake by gillibrand or any nominee who tries to run mainly on that. >> i do think that, a divisive form of politics that is not attractive. >> we will see, this is bloodless politics, this game of politics, you try whatever works, nothing personal, like the godfather. everybody who understands that, donald trump -- >> harvey weinstein, this issue of sexual harassment, there is a new story every day and they are running it at donald trump. it failed in the campaign but they are going to run it towards 2018. >> that is a large part of this, democrats looking at the alabama suburbs where a lot of republican either didn't vote, came out for roy moore or voted for a right in or doug jones and
that is where the democrats are aiming in 2018. >> absolutely right, the number that has not gotten enough attention which was nearly 60% of women in alabama who voted for doug jones and some -- close to 30% or more of white women who voted for doug jones which is twice the number of white women voters who voted for barack obama in 2012. they believe this issue is a way to turbocharge them in the election because they had similar results in virginia and that is why they are throwing their own guys over, let no good crisis go to waste, they will turn this into a campaign strategy. >> the price of the coin stores, we take a look at the crypto cu
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>> bit coin futures trade on the chicago options exchange, a milestone for the digital currency without you surging by 2000% in the last year. investors are wondering if they could be the next big coin billionaire but my next guest says the bubble is bound to burst. a law professor at duke university directs the global financial center. great to have you here. on bit coin, how could so many people be so wrong? >> we have seen it before. a lot of people read about tulip
mania, the mississippi company and so on so there was a mania that gets into the market. >> what is wrong in this case? what are people missing when they invest in bit coin that will cause heartburn down the road? >> the actual speculators who by bit coin as opposed to trade and list on exchanges, many of them think -- bit coin uses that icon. some of them are speculators who know there's more money to be made and hope they will get out before the last full.
>> libertarian pathos, and the alternative to the currencies, you don't think it is the store of value. why not? >> that is the well intended origin, currency that is transferred directly between individuals for government involvement and deliberate the world economy from what is perceived by ideologues as the tierney of governments central banks. i don't think a lot of speculators think that way. they see an opportunity to make a buck, to make high risks involved, have been huge. >> we had another op-ed saying regulation of bit coin would be helpful. it is reassuring to investors
and had some controlling legal authority. you think regulation is a great deal and once that takes place it will hurt this point. >> because regulation is inevitable. people get hurt demand it but once you get regulation in it is more expensive, all the compliance involved and so on and when you do that you take away the advantage of bit coin, a cheaper method of generating currency. the current systems of currency are expensive. the margins are very low and could go lower still with competition, regulated environment, it is still superior. >> the amount of energy bit coin
uses, think of it as a boutique investment, taking up as much energy as the country denmark uses. why is that? >> one needs huge computing power. basically computers solve the puzzles that were set for the miners and they get awarded bit coins. it is like the old analogy, it is very alliterative if you strike gold. those farms which are in china, think tank in australia, it is conceivable they would ultimately use 60% of the
world's energy. >> we know that is not going to happen. >> it is so for coal-based energy. >> your point is this can't last. once it takes up that much energy, regulators, governments will step in. >> i am sure that will be the case. people concerned about this are clamoring for action. i have read the alternative argument which is generation of currency his high energy, i suspect it is not what bit coin is consuming. >> appreciate you being here. we have to take one if you have moderate to severe rheumatoid arthritis and you're talking to your rheumatologist about a medication, this is humira. this is humira helping to relieve my pain and protect my joints from further irreversible damage. this is humira helping me reach for more.
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who the senate confirmed to the fifth court of appeals this week. he's very amusing. he is famous for having a twitter account with 100,000 followers. it is funny, it is witty. democrats tried to use that against him and tried tott discourage him from using it anymore. my plea to him is, don't stop! we need more laughter in this political age. paul: he is not as funny, though, as judge freeman. james. [laughter] >> i don't think i can pass that bar. i'm -- it's not funny, i'm very happy, i'm giving a hit to the u.s. consumer who is pulling the u.s. back toward normal u.s.-style growth, a big increase in consumer spending in november versus a year ago. so atlanta fed now saying another quarter over 3% growth, it's looking like a great economy. paul: kate? >> this is a hit for ajit pai
who moved to repeal net neutrality. it's easy to understand, we are just going back to the model of regulation of the internet that brought us google and amazon and reigned for 20 years. and special points to pai for doing this with a happy warrior mentality amid death threats and proteststs outside his house. he's continued to press the case as a happy warrior who made us a video about why we'll still be able to post instagram photos of our food. paul: dan. >> a miss to vladimir putin who used his press conference to embrace donald trump, say how much he wanted the work with him. now, i realize that mr. trump would like to work with vladimir putin as well, but bear in mind this is the company that the inter-- the country that the ioc just kicked out of the winter olympics because there was so much cheating in sochi. if you can't trust them in cross country skiing, you're not going
to be able to trust them in syria. paul: all right. thanks to my panel, thanks to you for watching. i'm paulgy -- paul gigot, and we hope no see you right -- to see you right here next week. eric: a fox news alert, taking a live look at america's busiest airport, it has gone dark. a power outage has grounded all flights in and out of the atlanta airport at this hour. take a look at that. no one is leaving, no one is arriving. can you imagine what the passengers who may be watching us right now are thug? a miscue by construction workers. officials saying they are, of course, working to fix the problem. right now, sadly, there's no timetable -- i hate to tell you -- for when operations may resume. as they say on the airplane, just stand by, we'll get more information when we get it. it's a developing story, and we'll bring you up-to-date whe