"2 cents more." and that is it for tonight on "the willis report." thank you for joining as serious enough for it to record a show if you cannot get to us live. have a great night. ♪ lou: good evening. thank you for being with us. president obama is preparing for a rare trip to capitol hill tomorrow. there he will usher senate and house democrats out of town for their summer recess. but it is becoming increasingly clear that this president desperately needs a vacation of his own. a vacation that is still ten long days away. today president obama headed to manama's on distribution center in chattanooga, tennessee. there he delivered the speech of jobs, the economy, the, -- of lisbon and he is sequestered and the keystone pipeline. take a listen to this jim today

from president obama. >> this same group has kept in place this meat cleaver called a sequester that is slashing all kinds of important investments in education and research. like they do the past two recessions. our economy would be much better off. lou: not one but to a pedicles slamming the sequester and the incipient because of all of our unemployment problems. mr. obama did not mention the very same sequestered that his white house proposed and the same sequester a sign in the law . more in a moment. the reaction to those presidential style hypothetical as well.

his call for a grand bargain. the budget committee and others. also tonight talking to the man at the center of house efforts to pass immigration reform in increments, moving carefully, and deliberately. the chairman of the house judiciary committee is here also to knock down some reports. one of the more powerful leaders is richard smith. whether he wants to hear it all about any further regulation of the housing and financial industries. the so-called grand bargain. repackaging of all the ideas.

doxies chief white house correspondent ed henry has a report. >> fist bumping an employee in tennessee, president obama claimed he had a new grand bargain deal to cut the corporate tax rate down to 28%. in exchange for republicans accepting changes to the appreciation rules are one time fee for businesses to hold earnings overseas. new money that the president continues to spend more on stimulus programs. >> i'm willing to work with republicans on reforming our corporate tax code as low as we use the money from transitioning to a tax system for a significant investment in creating middle-class jobs. that is the deal. >> republicans google noted the plan was not grand, was not a bargain, and was not even new. >> is a ministration never misses an opportunity to miss an epic journey.

>> it no longer ti's corporate tax changes to individual tax reform. the house speaker one small businesses to file individual returns and get in on the tax savings as well. plus, then treasury secretary unveil a similar plan in february 2012. new revenue would go to deficit reduction saying we can reduce distortions that hurt productivity and economic growth permitting us to lower corporate tax rates in a fiscally responsible way. the president is now proposing to use new revenue from the changes for new spending on everything from community college training to infrastructure program. >> it is of further left version of a widely panned plan that was already proposed two years ago. this time with extra goodies for tax incentive liberals.

>> the president ripped republicans by noting that have long supported corporate tax cuts but don't want to get on board now because it is his idea sounded like a man who is about to block approval of the keystone xl pipeline. >> keep talking about this oil pipeline coming down from canada it is estimated to create about 50 permanent jobs. that is that a jobs plan. >> even the business roundtable give this speech a lukewarm response saying this support corporate tax cuts but have to be coupled with cleaning up the individual tax cut. they went on to criticize what they call on related spending. bottom line, this new plan as a low chance of passing. lou: thank you very much. as you heard, president obama decided to double down on his plan. the keystone pipeline will create only a handful of jobs. despite the "washington post" fact checker hammering president obama over it all giving him to

pinocchio's. the "washington post" pointing out that using the white house own math the president should be saying keystone to create as many as 7800 jobs, not 50. the secretary of state announcing today that israeli and palestinian negotiators have agreed to meet again within two weeks to continue their negotiations. making that announcement at the state department after wrapping up the first direct talks between negotiators and three years. secretary kerrey has largely been leading the effort to become a this morning president obama dropped by meeting with negotiators for just under an half-hour. >> the president's support for our efforts including his personal engagement has been the essential, and the thinking for the. of very positive meeting with the president and the vice-president earlier this morning at the white house. lou: both sides setting a goal of reaching a deal within the

next nine months. our first guest tonight is skeptical of president obama so-called grand bargain. it sounds strikingly similar to the failed 2009 stimulus bill. joining us, senator roger wicker, member of the budget committee, arms services committee, and the economic -- the joint economic committee. good to have you with us. you were not impressed by this grand bargain. >> no. it sounds like a rehash of the stimulus bill read you know, we need corporate tax reform, but even the president has the knowledge to before that that needs to be revenue neutral. and so here he comes today saying corporate tax reform, and we take the money and spend it. that is a nonstarter. and i am surprised that the president has moved off of an earlier position in. lou: and the suggestion that there would be 01 time opportunity, money taken from corporate coffers in some

fashion drama that does not sound like something that would excite and it did not excite the business roundtable. it does not sound like it would excite many ceos i am. >> that is true. also, you have to remember that there are also a lot of people love their better members of big business groups. a lot of small business people pay taxes at the individual rate. we are certainly interested in making corporate taxes more competitive. the same time we have to take care of the small businesses that actually create the jobs. and there still paying when they read there are two sides. lou: a significant drop awaiting republicans here. that is for republicans, 23 million people in this country unemployed, underemployed. the president has already forgotten at. the republicans, is seems to me have an opportunity to lead on this issue.

are you all going to seize the opportunity and do so? >> well, okay. here is how we will lead on the issue. here is how we have already led. the only savings we have had in the past two years have been the budget control act. we are making it very clear and made it clear today in the commerce committee. we are not going to go over the overall budget numbers from the budget control act. where we have an opportunity to actually make some progress on behalf of the american people is this sounding board group of republicans to have been meeting with the white as chief of staff want to be the spending levels the same. having savings and a mandatory spending, the spending that is on autopilot to give us a little flexibility and the sequestration problem that we have, there is an opportunity there if the white house will

work with us on keeping overall spending the same in not trying to jack up spending rates. we can make progress here at the end of the fiscal year and connection with the debt ceiling. >> the president is saying no negotiation. that is, again, you all are hearing the president loud and clear. he will not negotiate. you will do what he as tells you. what point do you think the white house will reach a level of maturity which they will recognize that constitutionally they are expected to negotiate and as are you. >> i don't know what the president means if he says something like that. of course there is negotiation going on. of course congress has the power of the purse. and as a matter of fact, as i've stated, the white house chief of staff has been trying to negotiate something to give us a

little relief from sequestration while tackling when the money really is, and that is all this money on autopilot. but i tell you, there are things that are non-negotiable for senate republicans. the house majority, which is republicans. that is, we are not going to breach the hard-fought budget caps and the budget control act. so from our standpoint we want to make it clear it said the american people and clear to anyone in the white house that is willing to negotiate that that overall budget level that we fought so hard for is -- it has to be in all of these discussions. lou: we thank you for being with us. we appreciate it. >> glad to be with you. lou: delighted to have you here. a new report does is let us is all -- exploring new ways to alter the habits of americans.

documents to the federal government is hiring what it calls behavioral insight teams. the goal is to suddenly influence behavior or to nudge them to do things like saving more for retirement or becoming more energy-efficient. no comment to many that sounds purely like propaganda and mind control. the document tells the success of a similar team that went to work in england that has been able to succeed in moving procrastinating taxpayers to file on time. now, for more on this story go to fox news. the author of fascinating stories. we will take it up with a number of our guests here tonight. home prices surged as the housing market shows signs of real recovery. we will year from one of the most powerful names and real-estate next. with the spark miles card from capital one,

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lou: on wall street stocks finished last. the fed finishing its today policy meeting. the dow lost a point, the s&p gained a fraction. as beckham 17 points sunday. home prices rising more than 12% from a year ago according to the case schiller index prices hitting record levels. home ownership slipped to the lowest level in almost 18 years here now it is uplifting view, the chairman and ceo of the parent company and --, and other prestigious bands.

great to see you. it has to be a lot of fun for you to see those numbers rising. >> certainly if you talk about the crisis, we just finished a breakwater of 27%. on the back of of macro environments that is very housing friendly. lou: i have to say right here before i forget that i am long rheology. at least my wife is. >> thank you. lou: we are be read mortgage rates falling again for the second week in rome. to what degree is that as a helpful sign of the affordability index will remas ? >> several weeks ago everyone was forecasting the end of the housing recovery because mortgage rates have inched up a few basis points. mortgage rates are a component of the affordability index. mortgage rates alone are not going to determine the outcome of the recovery, but it is a key consideration. remember, we are on very low

levels. money is cheap by any standaad. the affordability index is still about 0172 which means the average family, 172 percent of what is necessary qualified. so you have a long way to go to get the equilibrium. lou: the regulators -- excuse me, an important part of your business. what can they do? are they likely to either help or hurt that affordability index? in the months ahead? >> it is interesting currently that lenders are lending to the highest possible underwriting standard because they don't know the rulee. dodd-frank is still not determined. there definition spending, although we're told the definitions will be more favorable than anticipated. that is the outcome than lending will not become more liberal. it will become more reasonable and practical. let -- the first-time buyers are sitting on the sidelines because they just can't qualify. eligible under the new rules that we anticipate.

it will help us the next 45 days. lou: we will get that gdp numbers for the second quarter tomorrow. that has pretty much come and gone. we are going to year from the the reserve chairman a moral. what do you want to year? >> well, keep rates low. they clearly indicated that mortgage rates will stay in the range of about four and a half, maybe worst case 5%. i think it is the the fed advantage and also to mr. obama's avenges to keep rates low through that time. we're not going to have an economic recovery unless we have a housing recovery. housing is well underway. an extremely strong quarter. such a shortfall that now does not make any sense. rates are going to stay low. that said, i cannot predict rates, by all indications the fed will keep rates low through at least 2013. lou: rate aside, the greatest headwinds that you can lose a little sleepover?

>> if they fail for whatever reason to define a qualified risk, that will create a problem. i don't think there is any indication of that. they're going to resolve this in short order. that will help housing. housing is on a very strong recovery right now. fannie mae is forecasting anywhere from 19-15% volume increase year-over-year. that is a strong year by any standard. government needs to stay out of our way for a while, let things work. i think they have been doing that for the last year effectively. lou: one of the few areas where there really have with that loud suggestion to me interrupt for a change direction. how excited are you? can't let you go without asking you one political question. a grand bargain that the president proffered to they. >> it is not a grand bargain by my definition. what is most important is the two parties come together and work together on a bipartisan

fashion begin clearly come to a grand bargain. lou: that is a little more modesty, the grand bargain. smart -- start small. >> we sat at the table and talk to one another. that is what the country needs. that is with housing needs that is what is on the agenda. lou: i join you in that hope. thank you for being here. >> you're welcome. lou: up next, it is a tale of two cities. new york and san diego compete for the title of seven the politician with the most sordid, absurd, annoying, nauseating, creepy story. the dons campus line. stay with us. ♪

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competing for title of most despicable dunce, on the left, mayor bob filner. on the right, anthony weiner. who said new yorkers are stuck with him no matter his latest absurd utterances, we'll hand out 5 dunce caps tonight. you decide who is the bigger dunce, we learn today this filner, is actually asking the city of san diego to pay his legal fees in a harassment lawsuit filed by former communication director, he believes because he was the allegedly harassing women on city time, that the city should be paying for his legal defense. this is dunce-worthy. we want to get it started with the good mayor.

well not such a good mayor. and on the other hand, we have weiner last night, weiner, refused to answer a direct question from new york daily news about whether he still se sexting women on-line, he said, quott, you can quibble about beginnings, middles and ends, but what we're talking abouttis over a year ago. it one thing to be a creep but to be a obnoxious narsistic creep? weiner's arrogance deservee a dunce cap. the mayor. filner against, is hanging on despite calls to resign from 7 of 9 san diego city council members, chairwoman of democratic national committee, senator diane feinstein. there not one but two recalls underway in san diego against filner. you would think he would start

feeling not very huggable at this point. but his dilution earns him, we don't often give two at a time, but he is the winner. and weiner stays in the race though. in every day, despite calls to step down from democratic strategist david axelrod who said he is just taking you of space, and peter king also demanding he step down. and the clintons, even they have a belly full. president bill clinton officiated weiner's 2010 wedding, weiner's wife huma had been working for hillary clinton since 1996 for crying out loud. when -- folks. i'll call him folks like this. who your friends are, that makes you not just a wean are but a full on weany.

so, we just want to make it clear, that he is doing -- he is getting everything he deserves. not quite. but now to final dunce cap. we debated this for a long time today, the show staff. we figured out we cast votes and weighed cons, and the cons of each, even the love gov. eliot spitzer is out saying that weiner should not be mayor of new york, spitzer's campaign is suggesting that weiner is a bad hus bant fohusband for morsing e huma -- forcing his wife huma to defend him on the campaign trail. that is from head. new yorkers may hate weiner but

they made headline writers happy. we don't know why voters are putting up with the weiners, the spitzers and filners, they cannot be serious, but we're sorryious about the dunce caps -- we're serious about our dunce caps, if they elect one of those folks, the dunce catches will be flying. >> a military judge, hands down verdict in the bradley manning trial.

lou: new details on deadly train crash in spain last week, a preliminary investigation shows that the driver of the train, was on his cell phone, and travelling almost twice the speed limit when train derailed and crashed. this thattininformation from twa recorders, recovered from the sprain, 79 people were killed in

the accident, driver charged with multiple counts of homicide. lou: a military judge today found army private brad ly manning not guilty of aiding the enemy. manning was convicted of more than 20 thundershowe 20 other cg espe an ong and threa ong. >> and penn state's former president, two other top administrators ordered to stand trial on charges they corpsed up the jerry sandusky child sex abuse scandal. spanner, and curly say they are innocent and were not aware of allegations made back in 2001. joining us now, former federal prosecutor, fox news legal analyst, eless wheel.

judge saying proceed. >> a preliminary hearing, then judge said you have enough prosecutors to take three men to trial, what sandusky did, was not a couple days or months it was decades, people that knew or should have known, they did nothing, those are the allegations. lou: how tough is this case going to be? to prove? >> it will be tough, in the sense prosecutor will have to bring in witnesses that the corroborate when prosecution wants, these men were told, they knew, it good knowledge that something was going on and they covered up. if they prove the cover-up they face a lot of time in jail. lou: and to bradley manning. found not guilty of most serious charge.

but facing 136 years in prison. >> well, let's break it down, most serious charge, aiding and abetting the enemy, but prosecution would have had to prove, that he knowingly, and intentionally sent out the information knowing -- this is key, knowing that americans would be killed or hurt by that information sense out, that is a tough legal bar to make, the espionage bar is lower, he stole the information, it was classified. and he sense it to a third party without authority, wikileaks, they had him on that. lou: which is there for that purpose. >> right. so, the 10 ears per count, yout property. and it adds up to 136.

128. more than life. lou: argument in this case, prosecutor saying he had to know that al qaeda would have access to the information, on wikileaks. the defense calls hhm a naive whistle-blower with good intention. >> said look he is a 25-year-old man, high had issues in his personal life and military, he was angry with how military was handles certain things, whistle-blower laws do not protect something in this, you hand over classified information. that is what they played on. i think that judge, kind of did pro verbal spit the baby. there -- proverbial split the baby. they will still get life. without going for the highest account,. lou: put it bluntly, the man acted against the interest of his country, violating his office, his -- i mean how can you not say this man betrayed

his country. >> he did, absolutely, but from a legal standpoint, can you prove, and prosecution did not, he knowingly sent this out knowing, knowing is key, knowing that americans would be killed. lou: turning to if you will, real housewives of thong thong new jersey stars, teresa guidice, and joe, accused of conspiracy, what is going on? is this part of the show? >> i hope not, i don't watch up reality tv, but this does give it a bad name. they are accused of 31 counts of mail and wire fraud, lying to irs, and to banking officials and bankruptcy court, sending notes and documents, through

mail and over the phone could lying, they are looking at a lot of time in jail. lou: it real thank you. >> we're sorting it out. lou: okay. take a second to join our social sites go to loudobbs.com, gets links to our facebook page. e-mail me. follow he at twitter. up next, markets awaiting major economic news, fed's next move. we'll find out more tomorrow, get ahead of the news, sam stovall next with his outlook before copd...

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stovall, what you are expecting from the report? >> i think it will show weaker growth in second quarter than first quarter, we had a final 1.8% in q1, it looks like we'll get 1% in second quarter, first half is living up to its name of a half speed recovery. lou: do you expect investors to be looking -- i apologize with what is going on here, i, pollgisapologize to everyone. >> i expect if gdp comes in stronger than expected, i think most people don't expect a surprise number, they also already know that fed haa talked out of both siders of its mouth,

one saying that economy meeting strengthening and other saying, not so fast, it. we'll take a wait-and-see add stuart. our belief at s&p capital ir iq we'll see a tapering start in december rather than september. lou: what would we expect of the fed. with so many economists there. they will be two-handed in their outlook when possible. there are some saying that this tapering, or slowing down the asset purchases, has been price into the market. do you believe that? factored into the mind set of investors. we'd made the shift from a liquidity led bull market to a fundamentally driven one. only reason that fed would say they will pullback on bond

purchases like a doctor saying to a patient, i'm going to take you off of the iv, because i think you are getting stronger. investors are realizing the economy is getting stronger, interest rates are likely to rise, but so will earnings and possibly share prices. lou: your outlook for the year? >> they will possibly go up. >> you are not going to lead us into the world of probability? >> well, your -- a at least our target that s&p will close year close is 1730, right now we're at 1688, upward, 1700 level. century marks are sort of sticky levels, like a rusto door requires several attempts before they finally swing open. we think they will, we think investors will look to middle of 2014 with improved economic and improved earnings information. lou: thank you, sam. up next, house republicans

approachingiim greg reform -- immigration reform in a careful deliberate way. and some of them have been accused of wants to take up the "gang of 8" bill from senate, others say it dead. we talk with house judiciary commiitee chairman bob goodlatte, next. ♪ [ villain ] well mr. baldwin... it apprs our journey has come to a delightf end. then i better use the capital one purchase eraser to redeem my venture miles for this trip. puhase eraser? it's the easy way to erase any recent travel expense.

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lou: house republicans demanding that irs stop obstructing their

invesinvestigation ask agent's targets of conservative groups, darrell issa said his committee has received 12,000 pages, related to the scandal in last two months it may sound like a lot but congressman issa said it is under .02%. in what they call an immigration pilgrimage over the week, as congress pursues immigration reform, bipartisan group attended evens highlighting the immigration experience, including a nationalization ceremony and a trip to ellis island. joining us now to talk about immigration reform in the house.

chairman of house judiciariy committee, congressman bob goodlatte. >> good to be with you. >> let's start with matthew boil, saying are you comfortable, satisfied with the idea of "gang of 8" senate immigration plan, which a lot of people thought was dead on arrival, what is going on? >> well, it is dead on arrival in the house, it is something that i do not support. i've been working all year long as you know, that do a step-by-step approach, enforcement first, legal reform. then, find an appropriate legal status for people who are not lawfully here, senate bill gives that status first then says oover the years, we'll go ahead, and secure the border, to do everify, and so on, that is what happened in 1986, with an easy

pathway to citizenship, and then, we had no enforcement. we still don't have the enforcement. then, the senate bill also, gives that pathway to citizenship, a special fashion way that people -- pathway that people who are not lostly here would get, people who have gone through process legally for generations have not gotten, we have a lot problem with the senate bill. we're doing it differently in the house, the speaker made it clear he will not take up the senate bill in the house, i, agree. lou: this comes up because be of your aides said to mr. boyle, you would be willing to go into conference with senate with presumption they would be representing the "gang of 8", legislatetion in that conference, and would as senator schumer made clear, he would be delighted to be in conference with the house, where he thinks he can take advantage of less talented and gifted legislators

than si himself. >> well, i won't comment on senator sum schumer's impressiof the house or imself. but, we're not going to go into conference with senate, unless, a bill can be produced that a majority of house republicans can support. i don't see anything remotely like the senate bill that house republicans is support, 70% of democrats in senate votes against senate bill, i guarantee you, if senate were brought to floor of house, 90% or more of house republicans would vote again it we're taking a different approach to this first thing is for house to produce their work, in these three areas, and let the public who we represent judge that, and let the world see that republicans

in the house have grade ideas for immigration reform, to grow our economy to control our borders to prevent illegal aliens from entering into the country, and i think they will see a clear contrast between house bill and senate bill. lou: i want to be clear. first, i think your approach is the correct approach. if i can say that. i know that it amounts to nothing, but i believe, absolutely, that you have chosen the absolute correct path to succeeding and passing immigration reform and border security legislation. also think that the republican party, has proved itself capable of absolutely screwing up opportunities with abandon. and one hopes for sake of millions of illegal immigrants and country this is not one such period. but we're also hearing that some of the big money folks, want the

gang of 8, that the senate, and president, will muscle their way through so i guess i would ask you, would it not be more rational, and perhaps more effective to begin with the first bill, in conference with senate? then move toward immigration reform. with a path to legalization? >> we're insist ant in the house that not only do you have to do the border enforcement and interior enforcement and the employment verification, and entry/exit visa system, but they have to be in place before any kind of legal status, as i said, we don't support a special pathway to syste citizenship, by legal status would be granted to people who are not legally here. there is an overwhelming concern that would lead to another wave

of illegal immigration. yes, most important thing now is is produce legislation that shows right way to do it, thank you for your comment washington poft releasepost released a pold american people agreed that a step-by-step approach, individual bills is what they prefer over the comprehensive bill passed by the senate. but first step, is to get the bills out of the house. then to have a determination made of whether it would be worth while having a discussion with senate, if they are willing to move away from their decision it may be possibling right now up to house to show right way to enforce the borders do legal reform to help grow our economy, and create more american jobs. and then we can talk about what

is appropriate with regard to people who are not lawfully here, in my opinion, house is not doing anything like senate's pathway to citizenship. lou: am i hearing you correctly there would be a first conference on border security interior security? evarverify and the exit visa? >> i think, first thing once language laying is produced -- once legislation is produced, they would gain support for next step, usually there is a lot of discussion with leaders in senate, about whether there is any mertight having a conference. -- merit to having a convent, in my opinion, most important thing to do is pass legislation through the house, see what american people's respond is. so far it is a good response. if that continues then maybe senate the come around to point

of view that it should not be done the way they are doing it. lou: thank you congressman, have you get to a challenge in front of you. >> thank you. lou: general jack king is joining us tomorrow, good night. ♪ ♪ ♪ ♪ [ male announcer ] if y can't stand the heat, get off the test track.

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neil: this just in, i just saw pigs flying, i just saw something i never thought i would, president obama wants to cut, cut corporate taxes, and further, he thinks it is going to create a windfall. i am neil cavuto, and ronald reagan he is not, but -- he is figuring tax cuts generate revenue. well kind of, because to make sure he is coupling rate cuts with what he calls one time hits on overseas earnings and slowing rates, such