john: i'm john heilemann. mark: and i'm mark halperin. and "with all due respect" to , clinton based on your speech this morning, you have learned from the master. >> literally, it was like a pledging conference. >> we literally had to break into a meeting. >> literally. >> literally. >> literally. ♪ john: on the show tonight, the former maryland governor martin o'malley. but first, the big rally. some sort of vote is going to happen on the house of representatives on the iran nuclear deal, but first

three presidential candidates made their case is about the agreement. donald trump and ted cruz went out that hillary -- hillary clinton gave a more subdued speech at the brookings institute in support. >> this iranian nuclear deal is catastrophic. >> never ever, ever in my life have i seen any transaction so incompetently negotiated as our deal with iran. >> those of us who have been out there on the diplomatic front lines know that diplomacy is not a pursuit of perfection. it is the balancing of risk. and on balance, the far riskier course right now would be to walk away. >> over $100 billion will flow directly to iran, to the ayatollah.

and billions of those dollars will go directly to hamas, to hezbollah, to the houthis, to radical islamic terrorists across the world. mr. trump: they rip us off, a take our money, they make us look like fools, and now they are back to being who they really are. they don't want israel to survive. >> i, too, am deeply concerned about iranian aggression and the need to confront it. mark: a big outdoor rally -- cruz invited trump to come speak. tons of media focus on trump. who won the day? they are waiting in on the issue, which is a done deal inside the beltway. john: there is exactly one potential president in that group, and that is hillary clinton, who has had a lot of problems politically. we hammered her for a lot of fronts. but you see her discussing international relations, this deal, trying to allay the

concerns of israel, talking about distrust but verify. how she would be aggressive -- everything she said sounded like commander in chief and the other two sounded like showboating clowns. mark: if the goal is the white house, she clearly has the most somber and presidential style. i think ted cruz helped himself -- he was overshadowed by trump, but someone will condition themselves to be the trump alternative and ted cruz right , now in fundraising and organizing and his whole command of national security issues, he had a very good day. john: notably, people were pointing out cruz had paid close attention to trump. he was citing the names of leaders that trump did not know who they were last week. he's never going to attack trump for all the reasons we understand, but he's trying to put distance between himself and trump. say he has a much

greater command of substance than this guy. mark: a number of republicans ended up in the general election are going to have trouble matching up with that degree of lofty, serious ideals. others didn'td have quite the same type of audience. john: it has been a big 18 hours for jeb ellis bush, who followed his appearance on the debut of "the late show with stephen colbert" with a big-time tax plan. today, the tax plan cometh. cut the corporate rates from 35% to 20%, cap deductions at 2% of gross incomes, tax carried as ordinary income, and let businesses write off expenses immediately. here's my question -- is this just a garden-variety republican tax plan, like every other week here and see, or is there some special sauce? mark: this is politically and legislatively shrewd -- there is stuff in here that democrats can

support as part of a company's. there is plenty, like eliminating the death tax, that they will not like. but there is no doubt that doing things like expanding the income tax credit, getting rid of certain ability to deduct things like state and local taxes, home mortgage. there is a lot of things people in the center could like. john: it is basically romney, plus some supply-side over here, a little populism over here. mark: more than a little. there are plenty -- here's the difference. there are plenty of winners in this plan who are lower and middle income. john: but we don't know how much it's going to cost or how he will pay for it. that was always the key with the romney plan. mark: romney's plan was skewed. john: if you are going to make this deficit neutral, which presumably bush will say it is, there going to have to be cuts.

who will bear the brunt of those cuts? on paper right now it is a good start. mark: if you look at who takes hits, we don't know the scoring -- the wealthy are going to pay more under this plan. in a lot of cases. not all of them. and a lot of middle-class and working class people will pay less. john: the question is whether middle-class and working class take cuts in programs that benefit then in order to pay for -- mark: unless it ends up being revenue neutral. what is impressive to me about this plan -- it expands the base and lowers of the rates. end in the republican context, that is a big advantage. last night, before he released his tax plan, jeb bush appeared on "the late show with stephen colbert." he taped a little bit for the television program as well as one of those newfangled web extras. here is a bit of the comedy business. >> without in any way diminishing your love for your brother, in what ways do you politically differ from your

brother george? [laughter] [applause] jeb bush: i'm obviously younger. much better looking. [laughter] >> policy, though. jeb bush: oh. i think my brother probably didn't control the republican congress spending. i think he should have brought the hammer down on the republicans when they were spending way too much. our brand is limited government. mark: long interview, some funny, some not. do you think jeb bush passed his colbert report audition? john: barely. he did not come out of their bleeding or bloody. i don't think you knocked it out of the park -- that was not a performance that anyone said, "wow, that is a new jeb bush." "boy, he really killed it tonight." but he did survive. mark: i thought there were times when he seemed nervous. he didn't quite know whether he was supposed to be straight man. or make his own jokes. i agree, he wasn't great, but it

wasn't a problem. but you have to compete in this contest with the front-runner, who is a start on television. john: it was not a start turn. i have sympathy for him. i have been on television with stephen colbert. it's a new program. no one knew what colbert was going to be like. it was hard enough when we knew what he was going to be like. last night, very tricky. if i were bush, i wouldn't have gone on the daily show. -- on the debut show. i would have waited a week. mark: still go on a show you haven't seen. still, i think you did just fine. it won't help them much, though. john: you'll have to up his game in the pop-culture primary. if he is going to be told to toe with donald trump. mark: he is a funny guy, but very dry. like his brother he can be a , little self-conscious in public. again, a show you have never been on, hollywood, a lot of pressure. there is pressure. john: jeb is not loosey-goosey. coming up, martin o'malley

unplugged -- if he brought his guitar. we will be right back. ♪

>> washington, d.c. is holding us back, giving bureaucrats more power over the economy is only going to make things worse. that is the problem. the way we bring jobs back to america is to take power out of washington and give it back to the american people by allowing them to have more of their hard-earned money. mark: jeb bush release a tax been moreno one has in this van rich ruben our bloomberg tax expert. want to start off the top with some news -- you have been talking to people with the campaign. it seems like there may now be a price tag on this plan that you can get. richard: yeah, the first estimate from congress has a cost of $3.4 trillion over 10 years.

i would throw in some dynamic scoring and regulatory reform and that is about $1.2 trillion. mark: that is a large number for sure. what else about this plan surprises you or strikes you, having read it 25 times today? richard: a couple things that are neat -- one is the secondary earner provision, where if you have a two-earner household, the person who makes less can file separately under this plan and not pay taxes at the higher person's rate. like you guys were talking about before, it has this mix of populism, traditional republican stuff there is , something from everybody. john: what is in here that is against current republican party orthodoxy on tax policy? richard: carried interest number one. small dollars, 15-20,000,000,000 dollars over 10 years. billion dollars over 10 years. secondly, the move toward full

expensing isn't against republican policy, per se, but it shows that he is not even trying to make his tax plan revenue neutral. he is trying to get out of the box that romney got himself into. mark: give us the biggest winners and losers of this plan. richard: biggest winners are people who are paying really high effective tax rates right now, people who are making a lot of money -- lebron, right? his tax rate is 39.6%, and it is now 28% on a lot of income. the biggest losers are people in high tax states. people who live in new york, new jersey will be able to deduct those taxes anymore. they are in that middle to high income range. 100-200,000 dollars. they are going to lose net on what jeb is proposing. mark: thanks so much for talking to us. joining us now to talk a little bit more about the bush plan, martin o'malley, former maryland governor. not going to ask you to endorse the bush plan. martin: i didn't know i was going to talk about it. john: we will talk about it and

a little bit about you. it is not revenue neutral. i know you want a plan that would redistribute. but some things are more populist, more centrist. doubling the standard induction does that sound to you like a , good idea? ittin: it could, if you do in a progressive and fairway. like the notion of raising the earned income tax credit. i did it twice as governor. i like the idea of doing away with the carried interest deduction. but overall the real question you have to ask about the bush plan -- is it good for our country? mark: which parts are good? martin; the parts that are good is where it costs $1.2 trillion over time and the vast majority of it goes to lebron and the other wealthiest people. it is not the wealthy people who are hurting, it is the 70% of us earning the same or less than we were 12 years ago. mark: their rate would go down but they would earn some deductions. the home mortgage deduction would be scaled back. is that a good trade-off?

lower rates, broaden the base? martin: most of what i know about this i have seen -- but it seems to me behind a couple of fig leafs that masquerade as populism, it sounds more like reagan -- government is the problem, and we have to do away with it wherever we can. but you know what? as a people we have never been able to give our kids a better future with more prosperity without making our country stronger at the same time. i think this plan, from what i've seen of it, appears to be more of the selling america short, defunding the things we actually need to do more of to give our children greater opportunities than we had. i am looking forward to putting out a tax plan of my own, doing it in a way that is much more keeping with america's success, american capitalism whereby we , ask the wealthiest among us to do a little more so we can make our country stronger and make the investments in infrastructure, make higher education more affordable.

mark: we will have you on free whole -- we will have you on for a whole other block. the world is facing a refugee crisis -- candidates are being asked what the united states's role should be. a couple other fellow candidates have been cautious and timid in what they are going to do. what say oyou? martin: i believe we should step up as we have before. i believe our greatest strength as a people comes from our principles, and in the past, we have stepped up whenever there was a refugee crisis. i believe we should take the 65,000 refugees that have been recommended by the international organizations. in a nation like ours with 320 million, that is like accommodating six more people in a baseball stadium that already holds 32,000 people. we are capable of doing this, and what's more, we can lead in an incredible way if we don't hide from events. john: and you think what clinton and sanders are doing in their responses? are they more cautious to this? martin: there is a lot of

xenophobia in the world. there is a lot of hatred being spewed, even from some who are running for president, donald trump in case anybody missed the analogy. i think sometimes as democrats we are too cautious in the face of that xenophobia. we need to speak boldly about the deepest truths of our nation, and if we do that, there is a font of goodwill that can be summoned forth. that's what we did in my own state with regard to the central american kids coming from honduras and guatemala. we accommodated more of those kids than we did in any state in the union. lots of people stepped up. john: we have more time with you after we come back. after the break. after a word with our sponsors. ♪

john: now is the time we get to know just a little bit better the former maryland governor martin o'malley, and also a democratic presidential candidate. we are going to have you do it by walking this wall, the only wall long enough for donald

trump. we are going to show you some pictures from your past and you will talk a little bit about them. first up is a picture of you and your parents in 1965 in maryland. what were you like as a little kid? martin: i was adorable. [laughter] i was the third of six kids. my mom, tom and barbara o'malley. two of the nicest and most compassionate people put together on the planet. my mom was in the civil air patrol, and my dad flew over japan in a beat before liberator. -- in a b24 liberator. john: did the o'malleys want for anything? martin: you know, we didn't do a lot of vacations. sometimes it would go to the beach. i remember one time when we went for an extended week, but no, we wanted for nothing. mark: that the kids have their own rooms? in that little house in

bethesda, we had three bedrooms and six kids. john: you look at in those coveralls, by the way. you might want to get a pair of those for you now. mark: very iowa. john: we will skip forward 19 years. there you are. san francisco, 1984 -- what's going on in that picture? martin: we were all waiting around, i think, for the democratic convention. mark: that would be you up on the far left. martin: those are others. others who all worked on gary hart's campaign. john: this is your start in politics, right? working in iowa. martin: i had this reaction to ronald reagan and i wanted to work for someone that would defeat him. i thought a candidate that spoke to where our country was headed was the way to go. so i started working for gary hart in december, 1982. when it was time to go out to iowa i did scott county and davenport. mark: any trouble at the convention in san francisco that you want to tell us about? martin: not really, most of it

was over by then. there was a month where we just had to -- john : you are all really tan. martin: we weren't doing a lot of work for that month after the california primary. john: you spend a lot of time in iowa now. how is it different now compared to 1984? martin: i have been pleasantly glad to find that it is really the same. people are so polite and they take their responsibility in terms of who to vote for so very, very deeply. a woman said to me in fairfield, this is my third time coming to see you. i said to her, how and i doing? she said, you are doing well, i have seen a lot of growth. [laughter] john: next year, 1985. this is your graduation from catholic university. same parents. what were you like as a college student?> martin: i went to catholic university, great school. it was on the red line which gave me the added benefit of

gary hart's presidential headquarters. i spent a lot of time on the hart campaign during those years. john: what did you get your degree in? martin: political science, can you believe it? john: did you go to class a lot? martin: i had some great classes. some religion classes, philosophy classes, the things that you were required to take were some of the most interesting with some smart people. mark: too busy in college to do anything but politics? did you do any extracurricular stuff? martin: i played in a band. i took a lot of great english classes. could have been an english major, but i wouldn't have taken a semester off to go to iowa. john: do you remember your gpa? martin: ooh...3. something? something?int i thought a- was the ideal grade.

john: no higher. mark: let's move on to number four, a big moment for you. 1999. that is a 36-year-old man becoming mayor of baltimore. talk about that day. martin: i had a lot more hair, and it was more black. that was inauguration day. those are my daughters, who spoke that day, and katie holding little william. he is now 17, stumping for me across iowa and new hampshire. that was a big day for us as a city. when i read for mayor in baltimore 1999, it wasn't because our city was doing well. it was because we had allowed ourselves to become the most violent city in america. but we forged a new consensus, and i won that election, the defeating two better-known candidates, both of whom were african-american. we won every single council district. that was a big day. every day of that job was hard, and yet i wouldn't trade a

single day because we saved a lot of lives. john: everything that has ispened since in baltimore, that time now a political asset or liability? martin: i think as people come to understand it, so far my experience with people as they see it as an asset, because the two yearnings i hear all the time is a desire for new leadership and getting things done. i don't have to tell anybody that baltimore was not an easy city to govern, especially in those times. notwithstanding the heartbreak of that night of unrest, we are a much more resilient city than we were. we will find a way to forge ahead. every big city has problems, and that is, i suppose, what attracts me to the work of big cities. it also has the greatest potential to save lives. mark: last one we want to get to. you are johnny cash here. what is going on?

martin: the man in black. you can tell that is the gubernatorial era. mark: do you have a johnny cash song? martin: i like "walk the line." also, "ring of fire." john: not "girl named sue." martin: at the inauguration, i sung "walk the line." john: we didn't get to every picture we wanted to, but we got to a lot. governor, thanks for joining us. ♪

john: our waning moments with former governor martin o'malley. what is the best thing about running for president? don't give us a talking point answer, just give us the real answer. martin: the best thing is a huge number of decent people that you get to meet.

mark: that is a talking point answer. how happy are you not to be running against donald trump? martin: very. >> we are live 24/7 on bloomberg politics.com.

emily: apple overhauls its products ahead of the holiday shopping season. we have all of the highlights including the iphone and upgraded apple tv, watch, and ipad. ♪ emily: i am emily chang and this is "bloomberg west." coming up, apple shows off iphones with new touch interactions and better cameras that can issue what they call life photos. how much will that drive sales? apple tv, that's the first makeover in three years and its own app store. and a supersized ipad pro with a