losses were and how that helped reduce his tax burdens. >> and why did this come out now? after he refused to release any of his returns as a candidate? and this a distraction against a growing >> so much at stake on day 55 of the trump presidency. >> it raises more questions than answers like whether he skipped out on paying his fair share of taxes more recently. but it's been treated as more of a distraction. >> the american public finally getting a glimpse at president trump's federal tax returns.

obtaining the first two pages of mr. trump's taxes. he paid $38 million in taxes on more than $150 million in income. giving him a tax rate of 25%. the move comes as they're battling headlines on the gop bill and wiretapping claims. prompting him to speculate whether the president himself or one of his staffers sent them anonymo anonymously. >> do you think it's possible? >> donald has a long history of leaking information about himself. >> dismissing the tax disclosure. >> i don't think we learned anything at all interesting tonight. this would be a mistake for democrats to get distracted by. >> his son suggesting it was a positive development for his

father. 12 years ago donald trump made a lot of money and paid a lot in taxes. #scandal. this after president trump insisted for months he could not release his tax returns because they are still under audit. >> they're under audit. >> everyone says you don't release your returns until the audit is complete. when the audit is complete i'll do it. depends on the audit. not a big deal. >> the president may have other reasons for keeping his taxes to himself. >> interestingly enough trump's return showed he paid about $31 million of the 36.5 million in income tax and it's also something he vowed to eliminate and gives you some look into his thinking. >> he got the president's tax

return in the mail anonymously sent to him. promptly crashed the server there and he's also the author of the making of donald trump. so we have the reporting. we have the tax, and then we have the mist risk. so let's start with the repo reporting, how did you get this? >> it just came to my home. i got a phone call from one of my grown children that this came to my house and i went up to new york city. >> you don't know who sent it to you and you didn't ask anybody for it. >> correct. >> but it had two very important words on it. client copy. what does that tell you? >> first of all it didn't come from the internal revenue service which probably got it electronically. it probably came from someone given that copy either because they worked in the accounting firm or it was produced in litigation or it was produced

for a regulatory proceeding and somebody had access to it. i think the reason they probably sent it to me is because i have written so much about negative incomes and how they're used by healthy people. >> do you think it was possible it was sent to you by the president? >> yes, donald has a long history of leaking things. doing it directly and indirectly. the anger suggested to me not likely. it's when something gets leaked he's happy about they don't complain. >> they did have their game together. when they found out this was coming out they put out a response that nailed exactly how to play this and they don't always do that. >> >> actually they behaved pretty unethically. i sent them the document and they gave it out to competing news organizations. professional pr people don't do stuff like that.

i've never had a white house do something like thancht join the club. so client copy takes the irs out of it and that's important right now because what we have seen is institutions keep getting attacked as part of a political tactic to deal with criticism of the president. >> right. >> so client copy puts this into the realm again of unethical litigant. somebody that got this through discovery and wasn't supposed to release it or someone connected to trump that would have had this. that's how you got it. now what's in it. as you said you do a lot of writing about the alternative minimum tax and what's going on. >> the trumps that year had $153 million in income. about $3 million a week. they also took $103 million of negative income and i believe that's from a tax shelt their the president bought. >> what is negative income? >> it's reverse numbers. >> you're in the hole. >> so you lost money. >> that's right.

in trump's case he didn't have negative income. the banks took that loss but the president bought a tax shelter that allowed him to take it as well. double taking the loss. >> illegal. >> congress, the republicans in congress shut that off the minute they learned about it but you know what they do, they let the people that already bought the tax shelter keep it. >> so this -- the president, we only have the regular tax system. we have two tax systems for wealthy people. regular and amt. he would have paid $5 million on 153 million. that's less than 3.5%. that's less than the tax rate paid by the poorest half of americans. >> so let's talk about why that matters. that matters because he wants to overhaul the tax code. a lot of folks want to overhaul it. he wants to get rid of something so instead of paying 36 and a million dollars he would have

paid about 3. >> he would have paid 5. that's right. he wants to live like a king and pay taxes like he's a pauper and we can't run our military and the fbi and the other things needed to make america a free and independent country without tax revenue. >> there's a big debate about that. you can't blame trump for the existing system. he was just working the system as everybody else does that doesn't want to pay a penny more than they have to. >> liberals and conservatives. >> was there anything that went to charitable giving or schedules that shows foreign asset structure? >> no, we do know this was the one year out of the last 15 or so the president made a gift to his own charity. $660,000 but beyond that we don't know. that's from the tax return of his charity which i also examined. >> so this was the right year to get in terms of trump's own interest, right? that's part of the backlash here is that for a leak this seemed

to be pretty good for the president. >> yes it makes him look quite good and the numbers if i'm right about the tax shelter imply his average income was $81.5 million a year. half, roughly. >> so it was the best number to show how much money he makes. it doesn't show anything nepharious and he winds up looking like see what's the big deal. >> if we don't see his entire return for many years. >> who would have client copy of a few pages. >> it could be a function of who had time to go to a photo copier. i don't know. donald trump is unique in that he is not showing his tax returns. we had hillary clinton's tax returns in the 1970s. >> this is the lead this morning because it is news but this is an intentional distraction. we'll bring in our panel to talk about exactly that and more.

>> chris made important points there when you look at his income over a number of years and big losses? do you see this as an intentional distraction regardless of who it came from? >> it may have the effect of being a distraction and self-serving. it's an incomplete picture and the picture that is presented is revealing of things that are consistent with what president trump has said about his financial standing his wealth and his taxes he paid. we don't know the extent of his financial entanglement and involvement around the globe.

>> the timing is curious. it is yet in the middle of all of the other things that the president wants to get away from. the wiretapping claims. the comey coming and finally giving word about the nature of the investigation of trump by that agency if there is one. the timing is pretty curious, no? >> i think if he intentionally did this the timing is shrewd. not because of the huge divisions within the republican party and the battle over how to replace and repair obamacare but really on this russia stuff that if the person who sort of went to bed early on a snow night maybe on the east coast last night and can only pay attention

to this in passing on the way to work didn't see david's interview last night they might see this and say it looks like he paid his taxes. maybe they don't know that we don't know who he is getting his money from. at this point they look at this and they say maybe there's nothing to all of this stuff about him being beholden to russia and i think that is what serves this purpose if it was intentionally to anyone in trump world. >> what this does show us is this white house can and is willing to put out the president's tax information. it does show us that. this is a president that said he would show his tax returns when the audit is over. never has. he can do it anyways. an ud it doesn't prevent you from doing that.

the white house proves by putting out this statement. >> he hasn't even given us proof. >> exactly. that they can put out tax returns when they want to. >> i just question the news value of this, right? possibly the speculation this morning is maybe even it came from donald trump. this story was hyped so much by the media on social media last night. it comes out and it's two pages. it makes donald trump look really good and i just wonder does it feed the appetite for more or does it pass identify people? people say we have seen the taxes. >> that comes to the nature of how you report it. >> but it speaks to the media. >> let's just assume for a second that he is playing us. well it wouldn't be the first time. he has played us like a violin

and it could be -- >> let's go slow with saying that the president did it. >> hold on a second. let me deal with this from the perspective of the taxes. >> what do you want to say to people that say they have the big tax guy, this is the whole story and now we know he doesn't pay more taxes than he has to. can't blame him for that. what do you want people to know about what remains to be known? >> here's what we don't know. we don't know how much money donald trump is getting. he is a more than 30 year connections and notice trump always says russia and never

says russians. secondly who is he paying fees to? it's a huge money laundering bank and also borrowed hundreds of millions of dollars from a communist chinese bank. that's astonishing. we need to see donald trump's complete tax returns going back to 1977 which until now is the last year we knew he paid income taxes so we know who he is doing business with, who his partners are. who he is getting money from. who he is obligated to. particularly the land sale he did in florida everybody said that's a pay off.

>> this is the beginning. >> absolutely. >> it's the beginning and it's a window that i told you a lot about from the window but it's just that -- >> it's an airplane window. thank you for the reporting. we appreciate it. >> stick around. >> coming up james comey will reveal in just a few hours whether or not the bureau is investigating these ties between the trump campaign and russia. that's an answer that a democratic congressman said the fbi director said he will give today. this amid growing concerns about the gop health care bill. more republicans now backing away. good morning, the white house facing potential developments on multiple fronts including the presidents attempts to repeal and replace

balm care as well as his claims of wiretapping involving president obama. it's easy to see how it's very difficult for this white house to change the subject once again in the midst of a challenging news cycle. >> confronting internal revolt over the house health care bill and on going scrutiny of his claim that president obama wiretapped phones at trump tower. >> americans need to know. >> amid the turmoil james comey could confirm today whether the bureau is investigating ties between trump's campaign and russia. leaders of a senate judiciary subcommittee also hopeful that comey will respond to their request to provide evidence regarding the wiretapping accusation. >> they're about to screw up big time if they keep running to the intel committee and not answer that letter. >> earlier this week sean spicer

qualified trump's accusation but now he is sounding defiant. >> he feels very confident that we'll ultimately vindicate him. >> lawmakers showing growing frustration about the white house's failure to provide any evidence to support trump's extraordinary claim. >> i think frankly the administration probably should come forward with whatever proof they have because leveling a charge like that is a huge deal. >> you do not make those kind of allegations against a former president as he did so recklessly. >> this as they battle criticism over the trump enforced outcare plan estimating 24 million more americans will be uninsured under the gop replacement plan. >> i'm a no. a firm no.

i don't see how we get to 216. >> i'm concerned. that's not what president trump promised. that's not what republicans ran on. >> one top gop source admitting headlines are terrible. lisa under pressure to support the replacement bill refusing to answer cnn. >> president trump silent over the report as the administration continues to discredit the cbo's findings. >> the cbo report is full of erro errors. >> the president is proud of it. >> he is going on the road first to detroit for a job creation event there and then nashville tennessee for a rally. >> there's a lot of spin going

on. some of it misleading and some of it false. there's mounting opposition. gop lawmakers want changes to be made. many say i can't vote for a plan where millions may wind up uninsured. so will it be changed or will it not make it? our panel debates, next. i'm claudine and i quit smoking with chantix. smoking's a monkey on my back. it was, it was always controlling your time, your actions, your money. it had me. it had me. i would not be a non-smoker today if it wasn't for chantix. along with support, chantix (varenicline) is proven to help people quit smoking. chantix reduced my urge to smoke some people had changes in behavior, thinking or mood, hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. some reported seizures or sleepwalking with chantix.

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t. rowe price. invest with confidence. this is it. if we don't get this through the goal of repealing obamacare and instituting a institution that would be patient centered it's going to be unbelievably difficult. this is the vehicle to do that. >> this is the only shot that's a message to the white house. this is more and more republicans defecting after the cbo report estimated the health care plan would lead tens of millions of americans uninsured over the next decade. look to begin with you, this isn't just republicans in the house and the senate saying it's a good start we want to make

some changes. saying things like senator tom cotton said yesterday calling it myth call legislation, listen. >> there is no first step. that's mythical legislation in the future that's going to garner democratic support and help us get over 60 votes in the senate. if we had those democratic votes we would need three steps. >> then you have senators that are more swing votes run agoway from reporters yesterday not wanting to answer what she is going to do. >> well, no one wants to be the poster child for torpedoing this effort. that's the message from the leadership is we're going to have to bring a bill and it won't be perfect and you don't want to be the stand out hold out republican in the house or senate and the one or two that brings it down. there's a lot of conflicting reporting going on and and it's

key to tax reform. and that's the reason and you have steve bannon strategist ahead of the caucus and maybe that medicaid expansion early next year instead of 2020. that's a deal breaker and then you have the people that support the president and others in a post story saying he is really going to end up hurting his base who is dependent. many of his voters in the rust belt that helped him win are dependent on a strong safety net. they need more. we don't know the direction the president is going in. is he going to sue the moderates or the conservatives? and members of congress have no idea if he's in this fight or not. >> that was a strong round up of the entire field going on right now. thank you. david what you are hearing is almost consensus is push back on

spicer. push back on ryan. this is misleading. this is false. this isn't our only shot. this is just the beginning. there's equal push back on this phase 2 and phase 3. you heard it from reporters but you hear it more from the gop saying why are they saying it will be okay when they don't exist yet. how does that play in the ultimate analysis? >> the real problem here is this health care sefrt being defined by it's earliest steps and that happened on obamacare as well. it made it very difficult for the obama white house to get this out. there was all this talk of communications problems when there was really a problem with the legislation that was moving forward but ultimately they were able to bring democrats into the fold and get this passed on a party line vote. there were a lot of problems with that as we have seen the implementation over the years but here you have these factions

among republicans and i see this as this fundamental split between conservatives that want to get on the tax reform and pursue conservative goals and has a different base who is going to have to live with the idea you're going to leave so many people out and vulnerable if you take this away. there's nothing comparable if you reach in and take a benefit away and that's what they're dealing with here is the stunning lack of discipline is going to continue to hurt. >> so matt lewis to the point about, it's a good one and important one, do we really know where the president stands on this one. president obama has admitted he is a better sales man of it. do we know where this president stands on what he cares most about keeping and what he will live with losing? >> no, because donald trump never had a really well developed world view in terms of

policies. he outsourced this to paul ryan that has a opposed world view. donald trump is a nationalist, populist within the republican umbrella and paul ryan is a conservative and they disagree fundamentally on a lot of things so i think there's a real question. if this bill goes down as it now looks to be very tenuous and it's teetering, does donald trump want to stake his reputation along with a bill that's off brand anyway that doesn't match his world view. or does he -- it's unclear now. he can go down fighting for this. he can say it's my legacy and landmark bill and the first thing we have to fight for or walk away from this and call it ryan care. >> you've seen no indication that he's willing to take this and make it his own and no indication that he can sell it. >> but if he walks away he

doesn't win and this is the art of the deal guy that always wins. >> just declares victory everything is great. >> there you go. thank you very much. a quick programming note. tonight for a town hall with secretary tom price on the health care plan. what does he have to say about how they're going to get this through? it's 9:00 p.m. eastern on cnn. >> how is it looking where you are? it's playing out in so many places in the northeast. as much as 2 feet of snow. the storm thankfully gone. the danger still very real. why, next? calcu... shall we initiate the restart sequence? ♪ thrivent mutual funds. managed by humans, not robots. before investing, carefully read and consider

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city you think nothing happened. it was a big miss. if you look upstate it was not a miss. bridgewater new york had 41 inches of snow in 24 hours and if you talk about that in pennsylvania, 32, down to mount pocono, down to the mountain area they had an ef-2 tornado two weeks ago. they did go from winter to spring to winter and 32 inches digging out now. massachusetts, all of vermont somewhere in the 20 to 30 inch range and the winds, 77 miles per hour. now the big cities what they had is an ice mix and the ice is still there this morning. if you walk outside be careful because there's black ice everywhere even here in the city. there's a lot out there. >> a lot of snow mint out there now. >> so what we will learn about

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surveillance techniques that existed throughout the 2016 election. i'll leave it to them to issue that report and she feels very confident that we'll come at this and we'll vindicate him. >> one question that doesn't go away is why is the white house relying on reporting when they can get the answer to what surveillance was done with a phone call and they can declassify it all themselves? this wiretapping allegation continues to haunt. let's bring back our panel. david gregory, and this answer

from sean spicer, extreme confidence, where is that coming from. >> i think they plan because there was some wiretapping. we know there was a transcript of conversations between then national security adviser michael flynn, well, in his role in the transition as incoming nsa director and then obviously he was talking to the russian ambassador. that made it's way to the press and ultimately lead to his firing because he laid to the vice president about it. what they plan to do is muddy the waters. if there's no evidence that president palm balm got a warrant from a court to have then candidate trump to wiretap or he did it illegally. if they can't come up with that and there's no indication that there's any of that, james comey already met with members of congress met meeting with him and i think what the white house staff tends to do is muddy the

waters the way hillary clinton used to say, i'm sorry i used a pry mat e-mail the way everyone else does. she had her own private server. they keep talking about reports of wiretapping. she was a candidate for president. she is president and has to answer a lot of questions from his own republican colleagues in the house and the senate. you have lindsey graham coming out and saying if there's no war aren't we would have solved that problem. he is saying he could have gone as far as to look into a select committee to do this. they will indeed subpoena any evidence if needed. is this the republicans showing the emperor has no clothes. how concerned is should the white house be about them? >> republicans are saying put up or shut up here. you have the fbi director that said there was no warrant. the president is in a position to know or find out immediately instead of going on with all of this garbage. you're putting out the press

secretary out there to engage in gymnastics around what he meant with air quotes. it's ridiculous. why is it that vice president pence that had such strong reserve when it came to not being lied to by michael flynn and told the president clearly you either get rid of this guy or you have undercut me, she willing to go along with a baseless claim from the president of the united states and all the other people around the president so if there was wiretapping which we know was true in terms of an investigation around contacts between the trump campaign and russia. if there were incidental conversations picked up not pursuant to the idea of president obama ordering a wiretap then they should come clean about all of this. the president is going to have bigger issues like say this growing crisis with north korea. how is he going to be believed around the world as he tries to summon some kind of coalition to deal with this if he can't be believed by the things he puts

out on twitter or the claims he makes. >> you know what, it's not a farfetched suggestion. not for sean spicer to other people they put out on tv. every time you ignore something you empower it and every time you give an answer that wishy washy at best you hurt your own credibility and then comes the other factor. why did they do that? it distracted from the main conversation. now he comes in front of the senate judiciary committee and he's going to say whether or not he is looking at what really matters and trump staff. is that the main story? >> i think the wiretap story is a side issue. i don't know whether it was donald trump having no impulse control or getting up one morning and reading a story and deciding to tweet or whether it was a strategic decision to

distract. that's a subplot. the real story is the election. we know that russia interfered in this election i don't believe they threw it to trump but we know that they're involved. that somebody coordinated with them. the in trump's orbit thing interesting. it's plausible that there's somebody in his orbit that was talking to them not. >> we'll get answers today. >> it's not like he's going to say, and we found that.

>> thank you very much. >> so speaking of people that want answers, coming up on new day, senator lindsey graham is going to be in our 8:00 hour. she the man in the focus of these questions. he is coming strongest about putting up proof. he'll make the case. >> coming up for us now the first trump budget. it will no doubt reflect his america first policy but what impact will his deep expected cuts to state and other departments have on america's position in the world? the former deputy secretary of state joins us next. people confuse nice and kind but they're different... nice tells you what you want to hear. but kind is honest. this bar is made with cranberries and almonds. so, guess what? we call it cranberry almond. give kind a try.

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they get the one point win over new orleans and they now move on to play number one seed villanova in the round of 64. two more games tonight on turners true tv. followed by an 11 seed match up between usc and providence. i want to share with you possibly the best thing on the internet last night. carmello anthony's fashion choices. this outfit was on fire. memes came fast and furious. one said who wore it better? george costanza or mello. he kind of looks like the bear from the revenant as well. people were having a blast with this chris. it was cold but i don't know if that's the way to cover it up. >> i thought he was channelling a little frazier there also.

another new york nick known for going aggressive on the fashion side. one disappointment from that game, that little 5'5" guy can flush it. he can dunk it and he had a chance on a breakaway and bobbled the pass. hopefully we'll get another moment. >> now you know where your hat went. >> i love those. >> you do. >> the trump administration vowing to dismantle the government as we know it. will it mean a big shift in america's role on the world stage? what will the cuts mean abroad? next. best-selling brand? you make it detect what they don't. stop, stop, stop! sorry. you make it sense what's coming. watch, watch, watch! mom. relax! i'm relaxed. you make it for 16-year olds... whoa-whoa-whoa!!! and the parents who worry about them. you saw him, right? going further to help make drivers, better drivers.

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to deconstruct the administrative state. global affairs analyst, nice to have you here and those words deconstruction of the administrative state tony, those are words from steve bannon.

his right hand guy. what does that mean it looked like to the world? to our allies and our adversary? it's all going to play out when he unveils the budget this week in terms of giving money and cutting money. >> cut the state department by 37% and it's incredibly short cited because diplomats and soldiers are flip sides of the same national security coin. they reinforce each other and if you undermine one you undermine the other. most of the problems around the world don't have solutions. you needy employee mats and development assistance to try to get to the root of the problems and build coalitions. if you're starting to take away the administrative state you're going to have a very tough time doing that. so one republican that came out loudly against that in the past few weeks is marco rubio for

example and you create this hole. you create this instability around the world when you make cuts like that and who does that help tony? wouldn't that arguably help them. >> the world is not self-organizing. >> including with our diplomats. >> somebody else was going to be doing it or you have vacuums that are filled. if you're out of the picture the picture starts to look worse. >> defended it to chris on this show yesterday. just listen. >> i'm going to spend more money enforcing the border and enforcing the laws on the books. i'm going to spend less money giving money to folks overseas. that's what the budget is. it can be summed nup two words. america first and when you think

about those that got the president to office you may be listening to what they're saying and saying yeah but that doesn't help my kid in school for example. this is a clear playing out of his america first doctrine, is it not? >> it seems to be but that actually puts america last. our engagement around the world through our diplomacy and development assistance gives us leverage and influence and brings other countries a long to pick up their share of the burd burden. that helps our folks out. just take immigration for example. when we're helping mexico, when we're working with mexico on crime and narcotics, creating a better environment in mexico for example, that means that folks in mexico maybe more tempted to stay home and not go somewhere else. >> >> on this big trip to asia he's in the air right now. a few hours he lands in japan. he'll be meeting with the foreign minister and the prime minister as well.

how would you assess rex tillerson's job. we heard hardly anything from him. >> this is a big moment for the secretary because this trip to asia first comes at a pivotal time. north korea been pursuing a nuclear program and nuclear weapons has accelerated that effort trying to get an intercontinental ballistic missile that can carry a nuclear payload and his mission is tro try to get everyone in line. south korea, japan, china to deal with this rising nuclear challenge from north korea. it's a big, big effort. >> so one thing he has threatened is to pull the united states out of the un human rights council. he says that council needs considerable reform and if it doesn't undertake that the u.s. won't be a part of it and won't fund it but here's his reasoning and this is important. he says why should we the united states a country that stands up for human rights and what is right be on this council with

human rights a buzers like saudi arabia, like egypt, like china. does he have a point? >> he has a point in that the council for some years has had a bias for example against israel and has gone off in directions that are pretty questionable but here's the question for us. are we going to be in the room where it happens trying to shape what happens or are we going to be on the outside with no influence? it's generally a better proposition for us to be on the inside. trying to effect it. trying to shape it. trying to move in the right direction. for example on the human rights council because we were there and able to protect israel. >> so president bush had not had the united states involved then under obama we were once again involved in the council. obviously with your work and now we'll see what happens and nice to have you on. thank you. >> thanks a lot. thanks to our international viewers for watching. new day