maybe this can be a welcome for other cities that are deep and red. that is my "two cents more". that is it for tonight's "willis report." thank you for joining us. have a great evening and we will see right after tomorrow lou: congressional republicans tonight accusing the obama administration of putting partisan politics ahead of the law and the american people. they are taking issue with the president's policy changes. it could stop deportations for nearly 1.8 million illegal immigrants who came to the united states as minors. the policy that critics call amnesty became official in mid august, prompting massive lines all across the country. when the policy was announced in june, president obama blamed republicans for blocking the dream act. a bill that he claimed had strong bipartisan support.

>> it pickup 55 votes in the senate. but republicans blocked it. the bill hasn't really changed. lou: resident obama has chosen to bypass congress and violate the constitution by doing so. leading republican, chuck grassley and congressman lamar smith released this statement. saying while potentially millions of illegal immigrants will be permitted to compete with american workers for jobs, there seems to be a literal if any mechanism preventing fraudulent applications and the program beginning this month before promises of what is going

to be a tight election white house print one in which the hispanic vote will be pivotal. joining us now is josé antonio vargas. featured this month. >> the cover of time magazine. the piece entitled we are american, just not legal. it is good to have you here. >> is very great be here. lou: did you hear the president say that he is like a crusader there -- he didn't do anythinge. immigration when he had the house and the senate. he doesn't do anything on the three, he can do anything that is effectively implemented for probably three years by making a sublic announcement last friday. you have to be sorely. disappointed in the sky. >> actually, i am not. because -- [talking over each other] lou: are you still undocumented? >> currently. that is the most dramaticin immt

improvement in immigrant rightsr since 1986. since 1986 under the reagan administration. lou: 1996 was pretty good. [talking over each other]peoe ta >> i have traveled around the yr country for the past yearhae meeting countless number ofnumbf undocumented americans. lou: we will have to share willo stories very but we don't have time for it right now. let's get to the issue of changing this immigration system you say is broken. we just put up on the chalkboard what this nation does.urious, wh i'm just curious, why hasn't somebody knocking on the door in germany? or the european union? knock on the board door of mexico, which by the way, asunio mr. obama said, he thankedfelpe felipe calderon so he cannot

move his people exit mexico. m isn't that sad and strange you? isn' >> by the way, that's what you're talking about. you're rig ht that america hasns determined is history being immrants. welcoming.always >> it has now and it has been and i think it will always be. have 12 millionive -- the directive on friday doesn't impact me because i will be 31 in february. we are from in this country comn about 12 million undocumented people who wantil come forward.s lou: i think that's great. come forward. we have guestworker programs byo which you can enter.we ve how how many federal programs have you applied to?ave ied >> actually come i haven't u: is applied. lou: is not kind of an oversight on your part? >> no, actually, it is n not. >> i admitted to everything i had to do a "new york times." [talking over each other] [talking over each other]

>> but because of that, i am disqualified from a visa.u can a lou: you couldn't qualify for that unless you have million dollars anyway. >> again , the fact that thereel isn't a system for so many likew me, and let me be very clear about this. i believe in smart enforcement. i believe that yes, we need somo protected borders. but for someone like me to say, tell me where to wait, give me a profit.for lou: you have been working. your name is in every paper. we have illegal immigrants rry? working. >> undocumented. lou: i'm sorry, do you want to challenge me? you use the language that youwao wish and i would use migrate thy country want to be a citizen of. is a free country to yes, sir. [talking over each other] [talking over each other] lou: you can express your views without interruption.e this country has illegal immigrants working in seekingwon work on every corner where thern is a hardware store.ardware stor

i don'te. understand the problem pr here. opportunity to become citizens. do it. >> please give us ever importan? process. there were 36 republican senators that voted against the bill in 2010 lou: partisan illegal immigrants. this is wild. you are not trying to be partisan, but by the way, -- lou: how about a president who hasn't delivered on his campaign. we want excuse me? he had a democratic congress. [talking over each other] [talking over each other] lou: i'm confused because i may not understand the math. he had a majority in the house -- >> in the house. lou: you really don't want to waste your time arguing reality. the fact is that he had a majority in the senate. he didn't do a dam thing. why do you have -- is it some

partisan thing -- >> i am not beyond left and right -- this is beyond left and right. i am simply stating -- lou: were saying that the president didn't have control of the house and senate for two years? >> the president has been saying this, for him to do what he has to do, you have to be able to work with the congress. lou: it's unlikely that you are saying that you want to talk to somebody who will say what the hell what the law. >> what i want is for us to come forward and tell the truth about where we are on this issue. and be able to come up with a solution. republican democrats working together. that is what marco rubio was saying. we have to remember. lou: marco rubio didn't even mention governor romney's name, and governor romney is the man who actually put forward the proposal to make legal and give citizenship to every illegal immigrant in the united states military. without comment from rubio, what

is this? there is so much detail and prosper best interest outwork your, it is so hard. lou: by the way, the one thing that i want to make sure that i say, because i have grown up watching it. [laughter] >> i have, i have. i want you to think of all the kids sitting in classrooms across america, every year, 65,000 undocumented people graduate from high school. i remember sitting in my classroom thinking, whenever somebody referred to me as illegal. lou: were you? >> i am a human being was the one do you want to be called a human being? >> i am an undocumented immigrant. what does it matter in that regard, sir? lou: words do matter. if you can't accept the reality that you are illegal. you can't accept that, there is no way to move forward.

>> oh, no -- [talking over each other] [talking over each other] lou: what is that nonsense? is a waste of time. >> it is not. lou: it is a game. >> it is not. when you play with words like that, it is again. here's the reality, i have set as clear as anyone can that i want to see a solution. the. >> thank you. i think you for that. lou: i'm doing it in the national interest. i think it is in this nation's interest. i'm not suggesting it in my interest. i'm suggesting that because it is right for the country. to come up with a rational, humane solution. what is wrong is you're trying to come up with a coalition and consensus, and you know what? advocates, and you can name them, the left wing represented by amongst other senators, chuck schuman, -- you know, who i

liked immensely. you want to argue about what language will be spoken and diplomacy and then i'm going to give you the last word. we can solve these things. but we have to stop with the nonsense. if you want to have radical discussions and tactics about controlling language, except the language because it's going to be the language of this country no matter what you think. english. it is going to be straightforward, plainspoken, because when you become an american, and i think you will. >> thank you the one when you become an american, being plainspoken and forward and honest is a big freedom that will help restore the nation to its reputation for having always been. plainspoken. you get the last word. >> the last word is that there are 36,000 undocumented americans in 15 different

countries. israel, nigeria, the philippines, people like me have been paying taxes. we paid $11.2 billion in 2010. lou: have you made any money? >> of course. lou: so you paid money that you earn money and you pay taxes. that is very nice of you so nice of you. lou: [talking over each other] [talking over each other] i'm not bragging about it we want why did you bring up? >> all your i have been asked have you pay taxes. lou: i'm not asking you. those are the answers. >> here's my statement. i would love to figure out how you and i come in a conversation, to have a conversation where we can find a solution and meet halfway. lou: we are not going to meet halfway. lou: we are not going to meet halfway, that is not going to happen. this is a nation of laws and sovereign borders. we are a compassionate and welcoming nation. and where we are going to meet

will be at the center of american values that you want to embrace. you do want to be american, right? >> i do. i do embrace them. lou: in america, we need to embrace america and everything that we stand for and leave the bowl wherever the shadow was bigger ones in. lou: thank you for being here. lou: up next, it's been more than a year since the credit rating took a nosedive. this president in the 112th congress has done nothing to curtail the so-called fiscal cliff. the men feared and loathed by democrats in dc. your to tell us what is at stake. grover norquist of americans for tax reform joins us next

lou: grover, it is good to have you here. >> it's good to be here be one e must turn to the fact that there seems to be no energy in washington dc to relatedt give concerns, if not give leadership to this country. on the issue of the fiscal w cliff. whether it is sequestration it budget cuts or whether it be a u

cut in the current tax rates by allowing the bush tax cuts laste >> we don't know what's going to happen. it will all be decided one way or a the other on november 6. if governor romney is elected president with the present republican house and incoming republican senate committee will extend all of the lower taxes for one year. do tax reform, top 25%, territoriality expensing, but ryan plan, reform entitlements. the ryan budget print. that's if you have the republican government. no tax increase, and serious serious spending reform. if obama is elected president, there is a 500 billion-dollar tax increase if the democrats are in charge next year or a 5 trillion over the next decade. lou: so what you are saying -- what you are saying is that senator patty murray and the democratic leadership in

washington dc and this president have just handed the republican party their message and their definition and perhaps, the greatest, most compelling appeal to voters in 2012. >> yes. we know that now because patty murray in the president are bragging about it. but we also know it because they telegraph that when in all of of 2010, when the democrats have the super majority in the house come house come in the senate, and they have the presidency, if they wanted to make any part of those bush tax cuts permanent for any income group, they could have done that. but they chose to extend the tax cuts for nobody. not the poor or middle class. nobody. lou: grover, i think that i got it. nobody. i got it. what i don't quite get, is the

fact that there seems to be some contentment that i don't perceive. i was going to november 6 without delaying the concerns and fears and anxieties in desperate need for leadership in this country by both this president, governor romney, and the republican house and democratic senate. and if we don't, it's going to have consequences, irrespective of the outcome of the election on november 6. it is, it seems to me, brutal ignorance. i am talking about both houses of congress, and this white house, to suggest, and anyone can concur that there should not be at least a resolution so there isn't a period of uncertainty for american business. working men and women in this country. it is, to me, the head of their responsibility on the part of both democrats and the republicans. >> right now, we are suffering

and uncertainty because we don't know what's going to happen. every businessman and investor in worker in this country has to look into the future and say that there might be a 500 billion-dollar tax increase. that is very damaging. the republicans in the house have voted and will continue to vote. lou: i report what they do here each night. i know precisely what they have done. i know precisely what they have not done. i know what this president has not done. under the proposals. what i am saying to you is that i guess i am -- if you will, forgive me for doing so -- asking why in the world should anyone, particularly in individual so important as you in our public affairs -- the ability to be content with leadership on both parties and their elected officials. on capitol hill and at 1600 pennsylvania avenue to i work

everyday to try to get these tax cuts made permanent to try to pass the paul ryan budget win. i'm not going to spend too much time asking harry reid were president obama to be considered concert of taxpayers because they haven't been in the previous 20 years of their careers. i'm going to ask them again tohk please stop raising taxes and wasting people's money. i think somehow that they are unlikely to respond. lou: we will consider that your inquiry, your statement. and we have taken note, and wend extend our gratitude to you for so doing. as always, grover, it is great to have you with us. lou: the murder rate israt i skyrocketing in chicago. our friends the problem, or is this about leadership orr cultu? culture? g what is going on, and why is it taking so long for this critical issue to enter the president'see picture? we will take a look into next "chalk talk" coming up next

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lou: check this out. gun owners b >> i also believe that ak-47s are not wanting hands ofnot in n criminals. >> we are not discussing peoples rights to have weapons. what were the key point is that lou: that as president obama and jesse jackson, to tons of chicago calling for more gunjaks control.on the two sonso of chicago, which, of course, is theof murder capil of the country, seemingly moreog impressed about what is going on in aurora, colorado, then whatd. is happening in their hometown.e the president also went on to talk about the dozens of people gunned down in chicago with murder rate in atlanta,

milwaukee, and cleveland. you can imagine what the ima president didn't tell everybody is that chicago has theheerybod strictest gun laws in this country. the number of murders nowhere near those other cities, far, far greater. example.for atlanta with 42 murders this year. that is down, by the way, 9%.n % new orleans, has had nearly 90 murders. new orleans, 90. milwaukee, -- milwaukee is, for a town and city of its size, 41 murders. >> i think i could clean that up. i could line up a little better.

it is a 15% decline. 15% decline. and that is kind of impressive, ,on't you think?impessive 18% in the past year. yet, the president mentioningond these cities -- cleveland, lastd year, cleveland. clcleveland had 59 murdleveland. cleveland had 59 murders. last year alone. nearly 30% of the decline from the previous year.ear so let's take a look at chicago. so far this yeart . chicago.by itlf chicago service by itself here.i chicago, so far this year, has had at least 284 murders. 284. i an increase of more than 30%. it is actuallye a 32% increase.t

in the number of murders in the past year. despite the fact that mayor rahm emanuel says that he's going to take it down and get it under control.de it means that there could beco tre thauln 500 chicago residenf murdered by the end of thisrding year, of course. according to the "chicago tribune", the newspaper, violenn crime is affecting minorities and a much higher rate than the rest of the population. that is not true. is not tr just in chicago, but it is true that e in chicago, in the first half of thahis lfyear, of the 2e homicide victims in the first six months, 259, 259 victims -- 201 were black. vitims jesse jackson is in a war, lorado colorado. aurora, colorado. that is almost 50% of thef

victims.have h americans have historically come in chicago, made up more than 70% of the murder victims and that is every ue year for the pt ery year 20 years.stat like statistics like that deserve more attention by the presidente then one reference in the fourth year of his presidency by mr. obama. so i would just say to the president, on the issue of gun control, you are not surprise anyone with your statements now. most folks call that expectation. on the appalling murder rates in your adopted hometown of ad chicago, you know better. for all this, mr. president, weh >> oba hasshould be doing a lot better. >> obama has a dream. a dream from his father. but the seeds of colonialism bet set right. lou: the executive producer of the new movie, 2016, obama's

america. dinesh d'souza sits down to talk movies and politics. but because of business people like you, things are beginning to get rolling. and regions is here to help. making it easier with the expertise and service to keep those wheels turning. from business loans to cash management, we want to be your partner moving forward. so switch to regions. and let's get going. together. ♪

lou: the executive producer ayoducer, the writer and shoulds co-star of 2016 obama'smeri, america dinesh d'souza. congratulations on the movie. it is a powerful and insensitive and extraordinary. you talk about the obama's complex. >> uses force to stop genocide in a villa but maybe he should stop greater genocide in syria.

lou: talk of a conflict with libya, syria, iran, what does that represent?t the >> of libya obama's saide. stop genocide.tet kil gaddafi killed fewer thantedtate 250 people but we move could with massive force but syriatrat 10,000 have been killed but obama's will not think of moving in. trying to push mubarak out and doesn't brotherhood is coming into power in egypt. but then one year earlier he says don't get involved. the patient.is dble what explains the doublexplainse standard?

mubarak and gaddafi seem toast e be doing business with us.nd lou: there is a line you draw married, and born ther. same year. such talked-about multiracial men guiding the hand of history because you are the executive producer. >> i think it helps me to understand. very often we try to fit obama into american.

what does that mean? >> it means two things. in the foreign-policy front there is a view. it anticolonial you that america has been -- we need to shrink america's footprint in the world because we have been stepping on the world. shortly after obama was elected he went to venezuela, europe, the united nations. in effect he said that. america has been arrogant, aggressive. we don't listen to other people. we need to play a more modest role in the world. i'm not putting ideas in his head. these are ideas obama talks about. all i'm saying is that they come. it can be easily praised. lou: it is jarring to hear his 2004 democratic convention speech. he talked for all the world like the great united and to watch the way in which he has

comported himself. slice and dice and a 2004 speech that you recall with your. he is the one slicing and dicing and seemingly pandering to every possible ethnic group, every race, every ierest group. >> he also demonizes his opposition. he does not act as if we are all people who have common goals. we want our one america to be prosperous. we all want america to be strong. he acts as if the other guy is the enemy, the bad is a complett

the united states. whenever you think about us to know we did not go there to steal their

the. >> for what you are revealing. 26 scene. go to the website, 2016 the move the.com coming to a theater near you. a spectacular job. >> three cellphones four welfare recipients and the dead? that is the fact. universal will talk about uncle sam unlimited plan. when we come back.

they are under investigation. would u like e phones lou: would you like a free cellphone p paid by the federal government and cellphone users. it i

it is called a lifeline program providing of phone to the low income but the the co cost has spiraled out of control. they started to hand them out in 2008 then spent $143 million now it is spending 1.25 billionf course, dollars by the government i mean you and us. the federal universal service fund the surcharge pays for the lifeline program tim griffin a member of the two sherry foreign affairs and armed services committee. crazy this is crazy. we have got a

costs -- accustomed to hearing this but for yearshad aa we have a reasonable lifeline plan where low income people could get a. land line. ago, actually as you mentioned around 2006, the decision was made to expand this program to cell phones. it is not just for those that we think of as welfare recipients, but if you have a whole list, there is a whole list of different programs, if you are on them, you get a free cell phones. lou: i am getting aggravated of hearing about someone else getting a cell phone because if you know the government is running it, it is screwed up. you proposed legislation to stop this, the kind of recession are you getting to that proposal? >> that is right. my bill says we will kill the cell phone component completely and take the lifeline program back to where it is just

landmines because you do not have a lot of abuse without. you don't have people wanting ten-12 landline. you have people getting 40 cell phones, not showing identification, trading them, selling them -- lou: what idiot would be giving people that many phones? >> here is the way this works. you have private sector companies who have signed up for this federal program and every phone that they give out, they get a certain amount of money. there is an incentive to give out as many as you can. lou: i will make you a bet, congressman, i bet that is a stimulus plan. i bet that money is going to good usa firms and hiring good american workers. >> wl, let me just tell you, we are trying to stop it. we have a lot of support, but we need a lot more. lou: i went to the list,

congressman, of those companies. they are not good usa, baer maybe -- there may be five businesses. this is a crazy position we hav to call 911. these are funds that allow you 100 or whatever, 250 minutes a month to chat with your friends. it raises the fundamental question of why are we buying cell phones for the population? if you go through the list, something like 50 to 60 million people are potentially eligible under the law as it is currently written. lou: congressman, i don't want to in any way seem argumentative with you, but under this

administration, my guess is about 300 million people could be interpreted as being eligible for this program. >> we are trying to stop it. lou: we are glad you are. we wish you luck. what is the next step back we just have to continue to educate people. we have some videos online that we put together that walk people through some of the abuse and we have to get more cosponsors. a lot of members of congress who have not heard from their constituents on this issue. i have. this issue was brought to my attention from people in my district around little rock. they were getting phones in the mail they do not even request. lou: good for

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lou: my next guest says the 2008 bailout could put thee country in danger of bigger problems.hank youor having joining me now neil barofsky and his brand new book made the bailout and how washington abandoned main streeto while rescuing walltionp street. it is a terrific book withma the players in thethe regulator relationship with the

government. i want to congratulate you. he is a democrat, republican appointee, and you went to ob. battle with democrats andocra republicans alike and haverom emerged but let's find out.e [laughter]ecutorbefore how? s> i had more hair when i got to washington. but i was very grateful for my time i was a federal prosecutor before i went to to washington. lou: and highly successful. >> es.it was a great opportunity but it was disturbing it did not matter

fu coming to the influence our economy was so often putting their interests ahead of everyone else's. it almost didn't matter what party you were in. lou: as you so vividly write about in your book, the fact that the banking industry is in desperate trouble, saving one or two of the largest banks -- desperate trouble. no conditions put forth for the money they received, toxic assets. it was an injection of capital at risk only to the taxpayer and not to the banks or any consequence seemingly to the federal government. it is a remarkable story that you tell to it was. when i got down there, my job was to protect the taxpayers interest. so i started asking for anti-fraud provisions. the most basic thing of all,

basic transparency. what happened to the money and where do they go? i ran into a brick wall. there is no other way to describe it. i was told that my suggestions were stupid that i was playing politics that secretary geithner actually cursed me out because of that lack of transparency was hurting the government. the response that i got bashed this incredible deference, i was told that we did not have to have taxpayer protection and we could trust the banks and they would never risk their reputations. putting the interest of their own profit over that of the taxpayer and the government. it was a remarkable thing to see. lou: i am amused that timothy gehner, the treasury secretary, says he's deeply offended by the charges on your part. you have run into a lot of deeply offended people. you talk about her alison being deeply offended. >> it is sort of a running gag. whenever an official didn't like an argument, they would tell me

how offended they were. it was almost perfect, secretary timothy geithner's reaction. was to pull out that fake outrage. lou: as he made clear, the people who should be outraged or the people watching and listening to you right now. we have a housing market that was on its back and has been in many cases on its knees for the last four years. yet the government did not move to help -- t.a.r.p., a million foreclosures for the average price of a house about $206,000. with $200 billion, we could have stalled the foreclosures. provided some support and help that could've avoided this void rather than taking on these massive banks. >> it was even worse because the

people need to understand -- this was a choice. where we are now in the grips of an ongoing foreclosure crisis was a conscious decision by her government. when we confronted secretary geithner on this, this housing program that was supposed to help millions of people stay in their homes, his response when pressed on the failure of the program was to defend it and explain it was about, in his words, the runway to the bank. this is the one program that was actually supposed to help main street and wall street. but we found out that david really wasn't about that. it was about supporting the banks in helping to give them a soft landing. everything that we see that is happening today, the sluggish recovery, but directly goes back to those decisions. the wreckage of homes and bodies -- because of decisions made by the government. lou: neil barfofsky lays out

those choices, the currents that run throughout economic, political, the backgrounds of each of these, if you will, the major players in this sometimes tragic drama. sometimes it is even comment. politics often is that way. neil barfofsky, the book is trickier. come back soon. the book is "bailout." i have to conclude with one question because we have had the spectacle. we have had the spectacle, the man who created the mass of citigroup structure. it's time to break up the banks. when you say? >> i absolutely agree. but on this occasion, you look at the incentive that is built into our financial system. a lot of it comes from the implicit guarantee, the presumption of the bailout that is alive and well. is alive and well. which is so... [ gasps ]

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lou: time for your comments on facebook. the post office wi defau lou: time for your comments. the reaction to the post office. in