that is it for tonight's willis report, thank you for joining us, have a great night, we'll see you back here tomorrow. lou: good evening thank you for being with us, a day of disturbing revelation about the obama administration's abuse of power, contradictory statements by obama administration it may be on set of a constitutional crisis, a defensivend aggressive president today, wildly miscointreauing previous statements by him and his administration regarding the bengzi terror attacks while coming fors first time o a potential crisis involving internal revenue service practice of targeting conservative groups. and pretty much anyone who disagrees with the way that the federal government is being run by the administration.

we begin with benghazi, president obama, presented a nixonion front during a press conference with british prime minister cameron, angry president obama laying blame for contininuing questions over terrorist attacks on his politica opponents, and severely minimizings importance ofhe false ambassador susan rice talking points that went on to blame the benghazi attack on an amateurish anti-islam youtube video. >> whole issue of this -- of talking points, frankly throughout this process h been a side show. we have been very clear about throughout, was that immediately after the ents happened, we were not clear who carried i out, how it -- it had occurred, what the motivations were. lou: well eyewitness testimony last week, prove that statement

to be false. and shows that the white house either was not engaged on the issue or purposely trying to spin the truth and days leading up to election day, shades of president nixon famous, i am not a crook, declaration to nation regarding his role in watergate break in before resigning 10 months later, nixon's abuse of power included an enemy's list, tonight we know that the internal revenue service has been maintaining an enemy's list ofts own. the irs admitting that conservative nonprofit groups like the tea party, were targeted. but a leaked inspector general rert shows that list could be rger than first represented, includes groups ttat criticized how the government was being run, groups that sought to education americans on the couldt talk and the -- on the couldn't sawingconstitution andf

right, president obama claimed he had no idea. >> i first learned about it from the same news reports that i think most people learned, i think friday. and this is pretty straightforward. if in fact, irs personnel engaged in thh kind of practices that have been reported on, and were intentionally targeting conservative groups, then that is orageous. lou: one of the targets individuals, jenny beth martin, cofounder of tea party patriots will be our guest here. associated press reporting that the obama justice deputy secretly obtained into months of phone records belonging to associated press reporters and editors, associated press ceo gary pruitt demands those

records be returned and any copies destroyed. claim its goes far beyond anyyhing that can be justified. the government will not say why is sought tho record, associated press saying it is a infringe ainfringement on their constitutional rights. >> back to benghazi, president obama distorted his own wordsn record of his administration. while recounting the narrative coming out of the white house in days and weeks between the benghazi terrorist attack and the election day. fox news chief work work washington correspondent james rosen with our report. >> americans died in benghazi. we also know clearly ty were not in a position where they were adequately protected. and suddenly, 3 days ago, this ts spun up, as if there is something new to the story. >> reporter: president obama's retelling of the benghazi story,

and how and why it resurfaced to consume pressure time with his news conference with prime minister was selective, president obama argued he has been characterizing benghazi correctly from the get go. >> the day after it happened i acknowledged that was an act of terrorism. >> repter: by president's words in rose garden on september were vague. >> no acts of terror will shake the resolve of this great nation. >> reporter: hours later president agreed he steared clear of word he now claims to have trumeled. >> this morning you went out of way to avoid word of terrorism in connection with libya attack, do you believe it was a terrorist attack. >> it is 5 52 52 too early to k. >> reporter: a week later, september 19, matt olsen testified before the sense sat that benghazi was not a protest gone awry. >> i would say yes, they were

killed in the course of a terrorist attack on our embassy. >> reporter:etoday the president took credit. >> up to capitol hill and said, it was an acts of terrorism. >> he did not send him to the hill he was called to the hill, and he referred to it as an act of terrorism not in his prepared testimony but in response to a question. i remember quite well, it was a firestorm on capitol hill. because finally someone in the administtation had said, straight out, th was an act of terrorism. >> reporter: the president spend weeks after olson's testimony in campaign season steering clear. >> do you have an indications it was iran or al qaeda? >> well, we're sti doing an investigation. and i n't top speak to something in -- i don't want to speak to something until we have

all of the information. >> we're still doing an investigation. >> we don't have all of the information yet. and so we're still gathering it. >> reporter: president asserted today confusion reined whether intelligence community completed its earl earliest assessment ofe benghazi attackses. >> nobody understood what was taking place during the course of first few days. >> reporter: cia station chief in libya cabled home that bengzi was a terrorist attack, and first version of cia talking points on benghazi drafted september 15 started we do know that islamicki extremists were tied. >> reporter: president obama did disclose today that lking points delivered by his u.n. ambassador, quote pretty much matched contents of the president's day brief, highly classified he received each morning "wl street journal"

reported today of it not until september 22, that the pdb was updated to. if that it true, g.o.p. lawmaker will want to know why it was so different from cia's own draft talking points when aost identified al qaeda affiliates as purpose operators -- perpetrators, if you could indulge one personal note, i have spent 19 years working on book of watergate there are a lot of comparisons floating around right now. one point i want to make for historical accuracy, president nixon never ordered or saw or touched theresident's list. lou: that is why we took care to say they were among charges of impeachment not that he committed such acts. >> right, and my pleasure lou thank you. lou: you were going to saying in. >> also that president nixon you

hear was impeached, he was the not, house judiciariy committ approved three of 5 articles but never voted on. lou: well done thank you. >> thank you, lou. lou: james rosen, outstanding reporting. meanwhile three days after his daily briefing eliminated all references to a protest sparked by an antiislam youtube video. president win the to united nations blaming murders of those 4 americans on that video. >> on this we must agree, there is no speech tha justifies mind less violence. there are no words, that excuses killing of innocence. there is no video to justifies an attack on an embassy. lou: president obama, used word

terrorism only once during that 55 minute long speech. s president, used the terminal guida only once during that 55 minute speech, and near either in connection with the benghazi terrorist attacks, so why would the president do that if he knew it was terrorism from the get go? it was not until september 28, 3 days after the president's speech before the general assembly, that the office of director of intelligence released a statement saying that the attacks in benghazi were a deliberate and organized terrorist attack, a statement released by james spokesperson. not o clapper himself, joining s now, former pentagon official kt mcfarland, and dr. walid phares, i have to ask you, first. if i may, these -- this sequence

of events that president used words terror, that president's daily briefing was not correcte3 until the 22 respecte 22nd thatd have been 3 days before president insinuated it of the video ratr than terrorism. in benghazi, the fact that dni did not correct itselff or the office of the dni, until, 3 days after the general assemy speech, and fully 6 days after they correed the president's daily briefing. what kind of monsterrous inconsistency is that? >> lou, there is a lot of math to figure out. if you make a comparison today, in press conference, the statements by the president, that and a quote, immedtely after the incident we didn't know who it was, what it was or the motivations were. that was t state of

understanding the white house and obama administration after. but then there was a whole, campaign, u.n. ambassador, the president, other officials, stating that what prompted this of a video. at what point the decision of made. what is the assessment that tellings that you video prompted a violent attack again the cons ratconsulate and killed the ambassador there is no answer. lou: your thought >> there is an answer, that is politics, it is made up, it was a fairytale from the beginning, they were allergic to the word, al qaeda and terrorism because there are an election, they did not want to admit that americans died because they had a messed up middle east policy, they said they gotten rid offa al qaeda, they any got succeed, they knew it 4 americans died thattis w they had to cover it up, they didn't want to go into an elect

saying ooh. lou: olson as he testified before congress, he responds it was a terrorism attack, i response to a question, but not in his prepared remarks. we're talking about 12th, president talked abo terror but that amounted to nothing in the rose garden. by the 15th we have talking points that david petraeus head of cia will not sign up on add inn advance of the ambassador rice's appearance on sunday talk show host. we have a update here this is one of the most confusing trails contradictory trails today the president, contradicted further. his own administration and its record. >> he lied, you are right,here so much fog, and smoke and mirrors no one can figure out the timeline, you did a good job at the beginning of the show, that is time f a house select

committeeenghazi to get people, to subpoena them, find out what happened, because it is clear that american people were lied to, and the question is why. and what are the consequences. lou: do you, agree walid? >> absolutely, we may see this issue is bigger. not just about not being ready, not just about what we have done to counter, or that we have not responded so far, it our policy in libya, we have not identified this militia and 10 other militias as jihadists this is bigger it has to do with arab spring at a whole, i think it was blocked it is not open that would be a pandora box. lou: the box seems to be -- at this point, a little fuller than we expected. andt thank you so much, and -r. walid phares thank you. house aways and means comehe i

chairman, announcing his committee will hole a hearing friday -- withhold a hearing friday to investigate the internial revenue service political targets scandal and reaction from republicans as this story unravels has been scathing, congressman mike turner of ohio, submied legislation to put irs agents who abuse their powers behind bars, and marco rubio calling on resign.ommissner steven and senate minority leader mitch mcconnell calling on president obama day to quote, take some responsibility. >> the verdict is in. the dramatic courtroom details and murder trial of abortion doctor kermit gosnell. what will be the political implication. >> obama administration has an enemy's list. conservatives under attack by the irs.

jenny bath martin cofounder of tea party patriots is joining us next. at od, whatever business you're in, that's the business we're in

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lou: our guest organization one of those targeted by the internal revenue service, she claims that internal revenue serve has lied and now demanding to know how high up the chain the cover-up goes. joining us is cofounder of te party patriots jenny beth martin. good to have you on the broadcast. you are going to be at the hearing to be led by chairman dave camp friday investigating the internal revenue service'' targetingn a political targeting. were you aware, did you suspect

that this is what the irs was doing to you and your organization? >> yes, we have suspect it for well over a year. and thank you for having me on, lou. in 2012, the beginning of the year, we got the crazy letters from irs, and saw they were asking questions about facebook posts, e-mails, who we sent press releases to, who in media we have talked to. the questions were so intrusive, they did not he anything to do with whether or not we were acting as a c4 or 5 01 c 3 organization, i am not surprised, this is disgusting behavior on side of the irs. lou: targeti specifically,tary tapper organizations those in-- tea party roarin organizations,s involves the list is conservative, no doubt, would you be surprised to know, as you

were delayed in ting to win your e. eexemptions that irs in january of this year, and first lady by the way made official announcement january 18, organizing for action group, has been approved for 501-c4 status. >> we have wondered about that, and people have asked questions, that is nothing that surprised me, we saw it was happening with the organizing for america and all of us were going yeah but none of the tea party -- internal revenue service is still stringing us along. you know i expected tea party and patriot groups when it came out. i'm glad to see the truth is coming out, i was shocked saturday toee they said they

were looking for people who said they were going to educate on thonconstitution and bill of ri, since when this that a red flag. lou: jenny beth marti we look forward to hearing from you friday as you attend the hearing. congressman dave camp is moving quickly to make certain that american peoplple know what is happening with their government, that would be nice for a change. thank you very much, tea arty patriots. >> thank you, lou. lou: and i top of turn quickly to wall street today, the dow jones industrial down 27, s&p posting a fractional gain. but closing at a new record, and nazdaq up 2 for a new 52-week high, volume on big brd under 3 billion shares, and helping to limit market today, retail sales, unexpectedly rose 10 of

a percent in april, following a decline in march, and gold dropping $2. and crude prices slipping 87-cents. in the bond market yield on 10-year note, rising 1.92%. and highest yield since march. and weekend box office, and epic earnings battle, between "the great gatsby" and "iron man 3". "iron man 3" took first place, bringing in $72.5 million, and great gatsby impressive with 51 million. and pair moment a "pain and gain." a 5 million-doar b office, that is good enough for third place, up next, a constitutional crisis, if the internal revenue service in the chalk talk, we'll show you how long it has gone

unchecked. a new study puts a price tag on immigration reform, we'll talk about it with the author of that study, douglas ekan is joining us in moments. thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiencebelow... to the finest comforts above. we're not simply saluting history... we're making it. the ocean gets warmer. the peruvian anchovy harvest suffers. it raises the price of fishmeal, cattle feed and beef. bny mellon turns insights like these into powerful investment strategies. for a university endowment.

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lou: as reported the two scandals now rocking the nation's capital paul center of this president and his of ministration. they have even managed to upset the liberal national media that they might return to their role as watchdog rather they have mapped out as they have become on -- a deal on a administration. the president's refusal to tell the american people exactly happened with benghazi is averages. now the irs is in political targeting within ideological enemies list only four years

ago the president joked about the irs going after his enemies in his commencement speech at ohio state university. >> i learned never again to take another team over the sun devils in my n.c.a.a. bracket. [cheers and applause] it won't happen again. [laughter] the board of regents will soon learn about being audited by the irs. [laughter] lou: exactly four years ago today may 13, 2009 and there are mor. irs inspector general report that could not be completed before the election is now linked in part revealing the irs was targeting organizations applying for tax-exempt status at least

as early as march 2010. the ira's targeting organizations that usehe phrases to party, the patriots, 912 with that initial phase of targeting 10 organizations were targeted. by june 2011 the irs expanded that criteria used to scrutinize applications with groups working on issues like government debt taxes and groups who were critical, and god forbid of how the country is being run by this time the irs had flagged more than 100 tea party belated applications and senior irs officials were aware of it. remember how the irs was initially blaming low level employees with distant offices but the inspector

general report shows the head of the ira's division overseeing tax-exempt organizations knew by june 2011 those conservative groups were being targeted. she instructed agents to shoot change criteria but that lasted through january of last year when the irs said they would look at any political organizations involving "limiting expanding government or education on the constitution and bill of rights and social economic reform. two months later in march of last year the commissioner of the irs, a democrat appointed by george bush testified before congress the irs was doing exactly what it was doing.

>> can you give us assurances the irs is not targeting particular groups based on political leanings? >> yes. i can give you assurances for as you know we pride ourselves to be a non-litical non-partisan organization. what has been happening is the normal back-and-forth that happens with the irs. lou: his term expired last november the scandal broke three days ago. now there to congressman calling for the resignation of stephen miller who's served as deputy commissioner for enforcement with the targeting occurred in the house ways and means committee chairman has launched an investigation and is holding a hearing on friday and has demanded all communications within the irs and he wants them by

wednday. the liberation of europe and the defeat of hitler. writ -- rick acton said joins us to discuss his new book the terminals are nearly in every wall street office am bloomberg reporters are using them in unexpected ways. details on the journalism scandal. the true cost of immigration and conservatives battling one another what is the truth? will talk with former cbo director with his side of director with his side of the argument next. all stations come over to mission a for a final go.

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lou: abortion doctor today convicted of three counts of first-degree murder for severing the spinal cords of infants born during abortions at the

philadelphia abortion clinic he also convicted of involuntary manslaughter in the 2009 death of a woman who died from a drug of overdose while undergoing an abortion and now moves into the sentencing phase to decide if he shoulreceive the of death penalty or face life in prison. turning to immigration reform our next guestays it could reinvigorate the economy leading to a higher rate of growth in our economy and more money per person in the workplace and reduction benefits as well and a lot of it the former director of the cbo douglas schultz eat-in good to have you re. you have the intramural battle racism -- raging how is it you would go after your own version of a

reality that has been settled? >> most leading in the power of markets andhe heritage foundation has the out liar but the major thing the conservatives understand is immigration reform has the potential to improve the growth rate of the labor force and allows us that always has bee what conservatives believe been to allow people to pursue their dreams. lou: the heritage foundadation is nottconservative? they don't believe in capitalism or help me out. >> no. their report admits that and they take a different picture because if you look at the report is to key features of what is not in it security issues, of

border and internal and everything about the broad economics of immiggation not anywhere so they're missing that peace that leads to t imbalance of the report. lou: listen to robert as he responds to your report. [laughter] he has numbers that says instead of what you say in your report it would reduce the overall deficit by 2.5 trillion dollars it could not be moreof a swing? >> i spent six months preparing thi report 80 pages long in the appendix describes the methodology over 30 pages so everybody could look in a my analysis and mr. egan does nohave a steady but basically a press

release about a study he might do he has provided about a page and a half of the information. >> i was taught brevity is the soul of wind and i tried to right things as long as they need to be. we lookt the differerence between the typical immigration scenario and reported in the paper the facts on labor statistics frommmigrants and higher than native-bo and out of the research lititerature and that is arithmetic. >> that is a complicated at all. >> what is the correlation between high school college degree is it petraeus agrees and employment levels? is there one. >> no question as your education goes up the

unemployment rate goesown andkills are at a premium in the global economy. lou: 11 milon immigrants more than half don't have high school degree is why does your confidence level rise so much? >> here is what the heritage foundation steadied as we have the 11 million then that all will remain here when a big chunk will not qualiffor legal status then when they remain here they will be relatively low-wage workers but look at the details in his opus they get high social security benefifits. the system is low benefs to low wage workers so it is how they did it. there isothing here that checking with a calculator.

>> he puts you down for being too pages. [laughter] let me turn to another aspect that there are fewer people to stay here to seek citizenship them bring in their families over the course of the years ahead. what is that number? >> leakey is out of the 11 million there will be some who qualify for the status and some who don't ours is predicated not on those folks but on the new emigration flow and for the first time switching our immigration system away from unification and economic merit. lou: you say let's get this done then we get rational?

>> i wish we could pick and choose on the issues but we have one bill and that is what we analyze. lou: it is tough for me and i have been doing this for a while covering this for decades but i have a difficult time to find where everybody gets their numbers because i have confidence of the or pri in rders said the kids those who think they bring in a live -- 11 million immigrants is a solution to adding a population growth i don't think enough people are being honestnough summer arguing the only way to have the onomy is adding a bunch of people. is that fair? >> there are two things. >> the 11 million are already here.

the native-born population has a birthrates so immigration is in the future so it is up to us, to pick that that is what it is about. >> we should choose our destiny and the future. douglas thank you for being here. up next billionaire america blumberg never liked playing by the rules now allocations as media company doesn't either. with the spark miles card from capital one, bjorn earns unlimited rewas for his small business [ garth ] bjors small busiss earns double miles on every purchase every day. produce delivery. [ bjorn ] just put it on my spark card. [ garth why settle for less? ahh, oh! [ rth ] great businesses deserve limited reward here's your wake up call. [ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose double miles or 2% cash back on every purchase every day. what's in your wallet? [ crows ] now where's the snooze button?

it's delicious. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. never really thought i would make money doing what i love. [ robert ] we created legalzoom to help people start their business and launch their dreams. go to legalzoom.com today and make your business dream a reality. at legalzoom.com we put the law on your side. lou: my guest says the fundamentals look attractive in aarket correction is possible over the short term but he sees the market rising joining us now is the chief economist for chase. good to have you here. uc the market looks honorable short-term.

how short and vulnerable? >> get invest 1446% that is on top of last year and can we get a correction? yes but the fundamentalsre solid and that is around the 40 year numbers over the next wealth months another 8% -cater 10%. >>hat seems disappointing can't we get more steam? >> we are catching up armageddon did not occur we did not do so much and will visa and the sequestered did not kill us but in the future we cannot continue to jump up the way we have. lou: just about everything washington tells us is a lie

to sort that thorough and retail sales today are surprising. >> because they were up just a little bit relive to expectations it sets up the second quarter now instead of 1.5% rigo wet 2% and maybe we can revise that higher with the first quarter so guess what even consumer spender -- spending is a little stronger. >> and gasoline prices i love talki to bill riley to is worried about big oil companies and never says you are right to they provide a great service. >> they peaked in going down every penny with purchasing

power and they use that because you see the savings rate coming down. >>nd with a little power the fed and the bank of japan and the european central bank wanting to do participate it feels warm and fuzzy. >> no doubt the central bank is handling the economy now with kid gloves but they are there to make sure nothing goes wrong whether the bank of japan that does almost as much as quantitative easing and of course, the others are doing a lot. lou: a beautiful thing to watch we will see how this unfolds. now the guns that last like you do not want to miss this the final installment of rick atkinson final trilogy

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u: to the german surrender my next guest has chronicled the final year of world war ii and a gripping conclusion to the trilogy and joining us now is pulitzer prize-winninauthor rick atkinson "the guns at last light" it is out tomorrow and already ranked number four on the best-seller list and i guarantee by tonight after the conclusion it will be number one. you have written one of the most compelling history is military histories ever and

i know this will be a blockbuster. good to have you here. you bring this such light and one of the things that i find amazing is your interest of battle fatigues and combat fatigue and you touch upon the subject with authority and a great research of all three volumes and wide you choose to do something? it is wonderful that you did when it is educational to the extreme. >> it is understanding understanding men at war and world war two it resonates today when we think about mental consequences and men and women at war the united states alone hospitalized almost 1 million soldiers for battle fatigue during the second world war there was a consensus after 270

days of combat if a soldier was simply no longer effecte it was a decimating aspect of the four that every commander had to understand. >> you understand the leaders as well like omar bradley's new to most people they think of him as a man without flaws and you expose those as well. >> they all have feet clay i do believe bradleys' reputation is considered lee overrated and outlived most of the others and that helps when you try to british history but i believe the narrative historians fit calling is to bring back the dead so i always a for characters people don't know what all or have forgotten about.

like jake of denver's two commanded one of the three army groups one was commanded by montgomery the other by bradley the franco american army the part that made it in southern france a fascinating part that most know nothing about. lou: there is so much to learn his final book in the trilogy. "the guns at lt light" we recommend it highl it is available right now you can get a link to add all of the dogs.com and it is such impressive reid and thank you so much it is magnificent figure for being with us we will see you tomorrow evening. tomorrow evening. good night from neyork. you hurt my feelings, todd.

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neil: forget benghazi nothing scares americans more than the irs, that other threa from over there, and what officials here knew, and when they whether or not you it is one thi. unleashing the force to unwitting public is there are thing, i am neil cavuto, apology not accepted, many conservative groups still mad, demanding committee hearings and more, a scandal that seems almost nixonian. the irs admitting it targeted right wing groups for amounted to nothing less than harassment. this is not the case o