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diane: happy new year, everyone i'm diane macedo joining you live from fox business headquarters in new york. we've been keeping up dated all night as we wait for the house of representatives to vote on a fiscal cliff deal that the senate passed earlier this morning the house went into recess last hour. sources say the rules committee is expected to meet anytime now on this. we've been told unlikely house republicans will have enough support to amend the bill to send it back to the senate. we still could get a up-or-down vote on this before markets opened. rich edson has been on capitol hill all day keeping track of this for us. rich for those tuning in a little foggy from celebrating last night. start things off with kind after recap. what is in the senate bill? what options are on the table for the house and what kind of progress have you seen so far, maybe lack thereof? >> die can, in about the last hour or two there has been real momentum shift to actually getting this thing done, perhaps having a vote on the senate bill. as you mentioned the rules committee meets in just

about 10 minutes. they are scheduled to meet in 10 minutes that would really open up the pathway for this bill to make it onto the house floor and finally get an up-or-down vote. the recap on this, basically this bill sends income tax levels back to where they were, yesterday really, the bush-era tax rates for income amounts, for families earning less than $450,000 a year. it preserves the 15% top rate for capital gains and dividends for income amounts of families earning less than $450,000 a year. increase to 20% of amounts more than that. extend unemployment insurance for a year. it makes sure that those middle class families who would normally get hit by the alternative minimum tax don't have to pay the amt. a number about provisions are involved here. the senate passed pill. republican haves a real problem there are no major spending cuts in this proposal. they're considering an amendment that would cut some $300 billion in government spending. though it appears as our house and senate producer

chad pergram from fox news has reported it is unlikely that has enough support to make it. if congress, the house were to amend that proposal to add the spending cuts to the bill the senate passed last night, republicans understand the senate is unlikely to even consider those changes. >> we are breaking up to go vote in just a moment on otherments. we do expect to vote on this later tonight. >> and what have the amendments, fiical cliff bill taking shape? what are the, size of the cuts you're looking for, where do they come from? >> we're just luking at one possible amendment. and they are going to decide after doing a little bit of discussion among members whether or not to bring it up. >> do you sport that test. >> huh? >> do you support that test? >> personally feel the senate will probably just ignore it as they did a year ago on the payroll situation. and that we'll still be back here. basically dealing with the

underlying bill which is the senate version? >> do you have a chance for up-or-down vote on unamended version of the bill? >> yes. i think that will be tonight. >> do you think that will ultimately get past the republican caucus, do you have any feel? >> i don't. >> diana, it is now official in the last couple seconds now the senate and house, excuse me the house will vote on the bill that passed the senate last night. so this effort to amend the senate-passed bill is basically died in the house of representatives. they will vote on the bill that passed the senate last night. if that vote succeeds we're done here. the bill goes to the president for his signature. back to you. diane: rich, markets ended the year in the green on hopes they would reach a deal on this. already by now. is anyone there worried about how having no deal could affect trading when markets reopen? >> yeah, absolutely. there is actually some concern, we've heard concern from investors on wall street the bill we described the one that passed the senate and now getting a vote in the house

of representatives this evening doesn't go far enough on government spending. doesn't go far enough on tax reform. there are a number of other issues. deficit control that congress will have to address as part of this. democrats and republicans, leaders in both parties acknowledge this bill doesn't go far enough for deficit reduction. this is going to start once the senate considers or house considers it. if the house pass this is bill tonight and the president signs it the next fight is on the debt ceiling and republicans will want spending cuts in exchange for increasing debt ceiling. treasury says we have $200 billion left of spending authority, deficit spending authority to go underneath the current debt ceiling. we technically already hit the current debt ceiling, but there are certain things we can do, wiggle room we can buy, it is unclear how much time that buys. in the past $200 billion, but this budget deal could change the way government spends and takes in and puts out money. so with that we'll wait for updated estimate from the treasury department. $200 billion is where it is

right now. that is the next fight. and government spending will be a part of it. diane: does seem like as soon as one things resolves there is another deadline we'll hit. rich, this decision to forget the amendment, go ahead and issue and up-or-down vote, that give you any sense of what kind of support it has or is there any sense whether it has enough support to pass? >> it is a good sign if you want the bill passed because republicans would never really vote against spending cuts. it is very rare for a republican to ever do that. what this tells us they don't have 218 votes just among republican members to get these spending cuts through. so there are a number of republicans who believe that this is the best deal they're going to get and in the end, now that all the tax rates from the bush administration have expired, extended in the obama administration, now that we reverted to clinton era rates, a broad base tax increases technically have been, republicans this evening will vote on an tax

increase, still not the spending cuts they want. there is still additional spending in this when you talk about long-term unemployment insurance benefits extended for a year, but the fact that they could not get the votes, they could not get the 218 votes they needed to get this package of spending cuts attached to the senate bill, knowing that it would very likely torpedo this deal, says it is a positive sign. we'll put it there. not a done deal. can't say definitely going to pass congress but it's a positive sign for passage. diane: as you were talking, rich, we got word from chad. we're all connected here. they're expecting a vote sometime around 9:00 p.m. today. we will of course be checking this with you. we'll check in here as well. that's all we can do. we keep everybody posted. rich edson live from d.c. rich, thanks so much. >> thank you very much. diane: and that is the latest on the fiscal cliff negotiations, everybody. that is going on in washington. we will be back at 8:00 p.m. or 9:00 p.m., i should say or as usual we'll break in at any time as we get more news.

don't forget we'll be starting live coverage tomorrow morning at 5:00 a.m. eastern for special coverage as markets start reacting to all of this. i'm diane macedo. now go back to regular programing. >> this has been a fox business special report. we now return you to your regularly scheduled programing"a-team" ca aday. if you don't know these regulations, you could be in big trouble. let's say that you stop adding to the regulations. that alone has prompted the obama administration say, well, republicans don't want to protect us. how are you going to answer the predictable criticism that you're not looking out for folks, you are looking out for business interests? >> well, we are. we are saying in health emergency, of course. any sensible policymaker would say you have to be able to address those. but right now, the pendulum has swung so ar that it's very difficult to even conceive starti up your business. and we want that to occur again.

much less allowing for those who are operating businesses to keep the lights on and grow. you know, you look at the last three years. we have seen a 23% decline in the number of business startups. in america, we are a starter country and we want to see it happen again. neil: he was ronald reagan's top money guy. why he says capitalism is in trouble these days and it's the governmes fault. by the way, republicans as well. we have david stockman acts. and suzanne somers on lala land going gaga over president obama. but next, ralph nader has had enough. he says that both partiein washington are flailing. and that is why the economy is failing.

neil: the economy is stumbling. nothing seems toe happening, but ralph nad has got a plan. one day he says he will get companies hiring and fast. getting people spending soon. >> nonfinancial companies are sitting on over a trillion dollars of shareholders cash. the investors cash. a lot of them are no giving adequate evidence. some of them like google and emc giving no dividends. if they can be pressured by pension funds to unload a cup and billion dollars into the economy, people would spend it. they don't like the tax penalty

for it. would you give them a tax holiday? you have to put it to use and do someing? >> they tried that in 2004 and they brought back hundreds of villains. they put the murders and bonuses and what we have to do is recognize the president obama is not an economic dictator. the federal reserve can bring interest industry rates much lower. so we have to go to these two other areas are overwhelming support of inflation adjusted minimum wage. >> i'm ot alone in an environment like this, how are you going to compel businesses, fast food joints and the rest, but it's in there interest to raise the rates when they are barely getting by as it is just as henry ford did back before world war i to $5.

he said he wanted people to buy the cards. that's what you got to do. neil: so what about substance of theountry where they have jobs with $10 an hour. were people really aren't jumping on these jobs. where we have a country where help wanted advertising is at an all-time high. a lot of people, for whatever reason, it are having trouble with work. >> we are talking between seven and a quarter and 10. he would get a long-overdue pay raise ust to in just to inflation. if you have rick santorum and mitt romney saying the minimum wage should be ingested, that would put pressure on them. >> let me ask you this. do you think the people are as tired of the notion of government could do something?

we have een a little bang for the buck. a lot of people are going the other way. they are careful to go that way beuse they remember republicans. but is there a limit to what the government can do? would you say that cars being made safely, and they say, you know, government can't make an economy as a whole. >> they don't have much power. we have demand more from big business. neil: will the government demand that? >> business can hardly keep up with the corporate climb. barclays, jpmorgan chase, now, wasko, 3 billion-dollar fine. we have to save these

corporations. they were built on the backs of american workers. build buildout by american taxpayers. recoing record profits. sitting on trillions of dollars, keeping them away from their owners and the investors and the worker neil: are you saying that there was cri involved? there was no crime involved. are you saying that all of these guys are typical? in other wors with that there are more bad guys and good guys >> the big guys have too much power and are too big to fail and all that. >> leches take the fortune 500. would you say, you mentioned three prominent companies. would you say that is 3%? 5%? 50%? i just disagree with that. >> if you look at the reports, my book that you've mentioned, those are reports from "the wall street journal." the ap, "washington post", 60 minutes. we live in a corporate world.

there are not enough on the corporate crime beat. neil: economic gloom and doom is actually helping this gentleman alive. to are you kidding me? >> i am not kidding you. i just need $150 and not that.

>> i'm not going anywhere. >> go right out the front door. how about that? >> how about that?

>> listen here, listen -- i don't give a darn, you can have it. >> here is your ball. neil: hereis somemething hat israel is the economy. it's a very bad, that business that pawnshops -- well, he says everyone is coming in lately and even rich folks. that's what our next guest says. >> she left calmly, because she had no option. when we can't take your pond item, we can help you. it started with her in it resonated on to me. we don't want to be disrespectful. when y you disrespect us, we act accordingly. neil: you act a little scare away. what is going on here?

you know, we are hearing so much about weddinrings and engagement rings and everything. we have seen an uptick in people that make lot of money what average folks are telling you, showing you, palming onto you, tell us about the economy. >> we have merchandise which is up online, with the other one is for redeeming merchandise. the economy is good. our sales floor is busier.

our palm lines are longer and we are taking in a lot more merchandise. right now it's getting a little bit better. people are working desperately to get to wok.

people just need to go out and every morning when you wake up coming have to ask yourself, how bad do you want to? go get a job, it doesn't matter if you clean the streets are mowed a lawn, or you are a doctor, there are opportunities out there. what i advise them is don't over extend yourself.

neil: so my wife's 250,000-dollar ring, -- [talking over each other] [talking or each other] >> we've been doing this long enough, we understand. >> don't go anywhere else. thank very much for coming. he is the guy. we wil have the response to barack obama coming up next. this is america.

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neil: it has been pretty much the legacy of thi president's

term and it was handed off by his predecessor if you think about it. auto companies, you name it. a lot of us actually started a long time ago before each of these men even came in to office. back to the carter years, to chrysler. a very big bailout. david stockman, who was then a congressman was urging against. >> i was running for reelection and chrysler was the biggest employer and i got the highest% of eleion because i suck my principles. the professionals knew that if they got in trouble, they were big enough to make a stink and to go down. neil: but now things have switched. now they have gone from too big to fail.

>> up the speech that i gave and i was very unpopular in the mission michigan delegation. i voted against the appropriation. [talking over each other] ronald reagan might get. >> the point was it was a mistake then. not only for chrysler, because we had to bail them out again 25 years later, how can we have financial markets that have been disciplined where mistakes and errors go unpunished? you can. capitalism doesn't work that way. neil: agree with you. you bertie concerned me. we had no choice because there was a financial abyss waiting. but if we can stabilize, the

whole world would have collapsed. i've been spending the last 2.5 years writing a book on this very topi that will be coming out next winter. take aig. they had written proper rules, they wouldn't have had these problems. therefore, we could have put aig into bankruptcy. the only difference is one woman was writing all this stuff. >> so we would have survived? >> yes. neil: now we have an environment where this is routinely done. the european central bank will

do the same over there. >> what has become of capitalism? >> the capitalism has be destroyed by central banks. they are the price of death. when you have the entire financial system trading off he last of the statements and whispered words of the central banks, it is no longer doing its job. or allocating capital, discounting the future, making choices within the financial system so if you don't have capital markets that are robust and working, how can you have a dynamic of capitalism? i don't think you do. this is the ultimate fault of this money printing binge that were on today. neil: up that the chicken is cong to roast? >> everybody is making their own choice. we have massive speculation going on

basically we are diverting capital to a spectrum of use. what we are telling washington, you are running a deficit for the fourth year in a row and yet you can borrow money almost for nothing. so why don't you just wait another year or two years. who wants to take the fall? who wants to take the political heat if you can borrow money for five years, which is what th are doing now. neil: we are building another debt bubble? >> yes, we are doing so. >> i don't know what you call it. we've never been there before, we've never had a central bank. we've never had anything like that. >> you don't think it can walk past the graveyard much longer? >> i don't think so. i don't think we can whistle the tune very much longer. >> okay. neil: if you had a lead suit you

would buy it. [laughter] neil: david, thank you so much. thepresident is now speaking out. that coming up next the capital one cash rewards card gives you 1% cash back on all purchases, plus a 50% annual bonus. and everyone but her likes 50% more cash, but i have an idea. do you want a princess dress? yes. cupcakes? yes. do you want an etch-a-sketch? yes!

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hearing evolving with beats audio. wireless charging activated. introducing droid dna by htc. it's not an upgrade to your phone. it's an upgrade to yourself. neil: probably not a fox alert to tell you that huge celebrities like democrats, they actually help the president win if you think about it. but not every star was going gaga over the president. suzanne somers says that that is a risk for them as well. if you are conservative, you are not welcome in hollywood. >> is it really does liberal bastion? >> yes, it is a liberal bastion. >> they don't associate with moderate to conservative? >> it is all about that ideology. you know, when you make that much money, you don't care. because you have your money.

neil: would they think about when jon lovitz came along. >> he's not invited either he's never going to be invited. neil: but he said e enough of this. >> i thought that was interesting. not many people speak out like that. i ve a little business, so i like to not offend anybody. so i don't tell anybody my views either way. neil: i would say i'm a centrist that leans to the right. neil: you have to be moderate on her persona non grata. >> i sell my little life with my organicskincare. neil: that's a lot of money for your little skincare line. >> i didn't leave tv. i was escorted and booted out the door in and fired. i get tired a lot.

>> how dare me to expect them to pay me what they pay the men. but then it was good because i thought i will never work for anybody else again. so i work for myself, and i have all these years. >> all the beauty products and things, everything around her image, do you feel a lot of pressure without? to feel beautiful? >> i just wake up like this and it's so easy. neil: me too. [laughter] i saw you talk to will tell welsh. >> my thing is that she knows her image is everything. everything has to be right. >> her writing is very good anyway. i feel pretty confident. neil: you know, the writing at

50 pounds, did you know that? [laughter] [talking over each other] [talking over each other] neil: will this be mitt romney's disadvantage to the media? >> it probably is, but it won't be to me. >> i think that he should have come out a long time ago and said this. but anyway i'm glad he did. most of my friends are. neil: he's not going to pick up any additional electoral votes, maybe he did it for all the right reasons. >> it could've been perfect timing. neil: what do you mean? >> well, you know, -- neil: with some liberal friends hold off on giving him more

money? >> i think that a contingency did. this is what they really want. if they are not thinking about the ramifications on the economy and what's going to happen in this country goes socialist. neil: do you think that this country will go socialist? >> i do worry. i have my little business and i do worry. at a certainpoint when you're a small business like i am -- neil: you're not a small business. you are a warren buffett with long-haired if you reach a point where you get to 75%, which is being tossed around there, how can you keep your employees? at some point when you're not making any profit. neil: a lot of what you say, it

is 35% right now, that's what you're saying, you bring in up to 39.6% under clinton. i might be able to live without. i might not. is their level of crunching the numbers? you are pretty good at math? >> i am married to a canadian and i can always run to canada. [laughter] he has dual citizenship. neil: may be billionaires are not focusing on jobs because they are focusing on their love lives or their lack of one. how the grinch are striking out these days it could be a real beach for jobs. john is 42. mortgage. married. two great kids. he wants to protect his family with a $500,000

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neil: if you are rich, the president is itching to go after you. my next guest says that is bad, but this could be worse. millionaires and billionres are having a taxing good time finding love. but 1-800-flowers, jim mccann says that he has the fix for that. i am finding that the peak is in. they are all telling me about what things are all about, the number one or number two show in the country is the big bang theory, so we are all celebrating the geek. neil: this idea that if you have this business, very good ommon sense, i think they are lookin for answers in all the wrong places. how do you invite them?

>> i will tell you as a florist, it is good business being in an ability to help people and relationships. i have been a social worker, i have been a florist, and both have a common theme. i wrote a book about my discoveries about the thing that makes us unique on this planet, which is a core of the story. the matter what, everything we do, whether it's the places we work with a service organizations that we might want to come in the sporting activities, we are all seeking out social intimacy. and if you are a hard-working and hardcharging geek of some success or not, you may not have theopportunity to meet someone, yet we are searching for that every day. neil: you have a lot of guys that send flowers from secret admirers and all that. >> we are very happy to hear that. neil: you we telling me during the break that the number of

guys who send flowers out is not a reflection of a date or anniversary is because the they are sorry or they did something stupid. >> there's not a days that goes by that i don't have a young guy come up to me and say you saved my butt so many times because i've always screwed up. either we make ess mistakes, but it's a high percentage for young men. not so much for the older guys. they be we have smartened up. neil: you should have an apology bouquet. we have a dog house uk. do people use flowers to make a statement?

>> during the last few years, the top recessionary times, we saw a number of transactions with the average ticket was down. and our food businesses held up even better. a box of chocolates might be a little bit less ephemeral than a bouquet of flowers. birthds are still going to come around. all of those celebratory occasions are going to come around they need to participate in. we had a nice little service that will help others. neil: ho better than the guy who plays cliff onhow jobs are falling off a cliff. john mica murder on layouts that are way out of the norm. and while he says his fix is better than washington's. better than washington's. bar none. suddenly, she does something unexpected

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we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally. ally bank. your money needs an ally. neil: clip is going postal. a famous actor who played clip on the hit tv show cheers, with millions of workers struggling to find work, he is working to get actors back to work.

neil: it was almost ingrained in us to move away fromthat. it really killed us, do not. >> yes, it did. i started talking about the subject about 10 years ago wn the water was at her ankles and now it's up to her chin. because the average age of someone who is skilled and can make things, whether it's in a fax factory or a plumber or welder is about 57 years old. very soon, they will all be retired and we have no one coming up after them. everyone is talking about what kind of capricorn where. but we are heading for a crisis. while business, whatever the businesses, stems from two things. ning, manufacturing and farming. everything springs from now. you have to have peopl showing up to have the skills. and we have never taught her kids the skills the last 30

years. they would sooner turn those guys away and search for cheaper labor. the reality is decades. you are not going to call a plumber from china to unclog your toilet or a welder. neil: so now you are saying that we have to encourage this. so we put almost a scarlet letter to a? >> it is hollywood's fixation they came out of the charlie chaplin view of factory workers. it's not like that anymore. you have to have computer skills. people who give advice to high school kids should say, start

educating kids like we used to. neil: even if they found their jobs that don't pay what they used to, in this environment, it will pay you anything you are going to get and y will be grateful for it. >> the government has to understand. [talking over each other] [talking over each other] neil: what about barack obama? >> the government needs to get out of the way.

manufacturing is to america what spinach is to popeye. the strength of america is manufactured. neil: you don't think we can have a great country based on service? >> again, you go back to our terminals and electricity has to come through there. where you get do you get that from? a hydroelectric dam words power that is coal-fired. and now now they have all of these restrictions on coal mining and also the hydroelectric and i have talked to the people and they said that they can't find workers that work on the turbines to repair

the turbines. so the day to come. it could come when no one is around to manufacture it. every little part has to be shaped. someone has to take a chunk of metal and put it into the machine and all that don to 120 southend-- 120,000th of an inch. neil: you been in every pixar movie. >> .true, but in the long haul, actors, sports, celebrities, the rest of us, we aren't. neil: how did you do it? how id you succeed and do the things you do? how do you you still be a big thccess in hollwood?