"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 y cannot t to us live. ve 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 vacatn of hiswn. 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 sequeste that is slashing all kinds of important investments education and research. like they do the past two recessions. our ecomy 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. theeaction 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 rhard 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 cuthe corporate tax rate down to 28%. in exchange for republicans accepting changes to the preciation 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 gnificant investment in creating mdle-class jobs. that is the deal. >> republicans google noted the plan was not grand, was not a bargain, and was not eve new. >> is a ministration never misses an opportunity to miss an epic journey.

>> it no longer ti's corporate ta 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 bruary 2012. new revenue would go to deficit reduction sayg we can reduce distortions that hurt productivity and econoc 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 traiing 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 want to get on board now becse it is his idea unded 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 corpore 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,his new plan as a low chance of passing. lou: thank you very much. as you hea, 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 ging him to

pinocchio's. the "washington post" pointing out that using the white house own mat the president should be saying keystone to create as many as 7800 jobs, not 50. the secretary of state nouncing 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 rsonal engagement has been the essential, and the thinking for the. ofery positive meeting with the president and the vice-president earlier this morning at the white house. lou: botides setting a goal of reaching a deal within the

next nine months. oufirst guest tonight is skeptical of president obama so-called grand bargain. it snds 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 t knowledge to before that that needs to be revenue neutral. and so heree 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 posio in. lou: and the suggestion that there would be 01 tim 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 gros. a lot of small business people pay taxes at the individual rate. we are certainly interested in making corporate taxesore competitive. the same te we have to take care of the small businesses that actually create the jobs. and there still paying when they read there are tides. lou: a significant drop awaiting republicans here. that is for republicans, 23 million people in this country unemployed, underemployed. the president has alrey forgotten at. the republicans, iseems to me have an opportunity to lead on this issue.

are you all going to seize the opportunity and do so? >> well, okay. he 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 yea have been the budget control act. we are making it very clear and made it clear todayn the commerce committee. we are not going too or the erall budget numbers from the budget control act. where we have an oortunity 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 sta want toe 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 ovell spending the same in not trying to jack up spending rates. we can make progress her at the d of the fiscal year and connection with theebt ceiling. >> the president is saying no negotiation. that i again, y all are hearing the president louand clear. he will not negotiate. you wildo what he as tells you. what point do you think the white house will reach a level of maturity which they will recognize that constutionally they are expected to negotiate and as are you. >> i don't know what the president means ife says something like that. of course there is negotiation going on. of course congress has the power of the purse. an as a matterf 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 negotia that th overall budget level that we fought so hard for is -- it ha 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-ficient. no comment to many that snds purely like propaganda and mind control. the document tells the success of aimilar team that went to work in england that has been able to succeed in moving procrastinatin taxpayerso file on time. now, for more on this story go to f news. the ahor of fascinating stories. we will take it up with a number of our gues here tonight. me prices surged as the hoing market shows signs of real recovery. we will year from one of the most powerful names and real-estate next. the boys used double miles from their capital one venture card

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lou: on wall street stocks finished last. the fed finishing its today policy meeting. the dow los 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 chrman and ceo of the parent company and --, and other

prestigiou bands. greato see you. it has to be a lot of fun for you see those numbers rising. >> certainly if u 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 remain as high as it is? >> several weeks ago everyone was forecasting the end of the housing recovery because mortgage rat 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 indexs still about 0172 which means the average family, 172 percent of what is necessary qualifi. so you have a long way to go to gethe equilibrium. lou: the regators -- 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 underwritg 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 anticipat.

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 th reserve chairman a moral. what do you want to year? >> well, keep rates low. they clearly indicated that rtgage rates will stay in the range of about four and a half, maybe worst case 5%. i think it is thehe fed advantage and also to mr. obama'avenges to keep rates low through that tim. we're not going to have an economic recoveryy unless we hae a housing recovery. housing is well underway. an extremely strong qrter. such a shortfall that now does not make a sense. rateare going to stay low. that said, i cannot predict ras, byll indications the fed will keep rates low through at least 2013. lou: rate aside, the greatet 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 incrse 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 effectivel. 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 definitionn. 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 -- startmall. >> we sat at the table and talk to one another. that is what the counry needs. that is with hsing 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 saniego compete for the title of seven the politician with the most sordid, absurd, annoying, nauseating, creepy story. the dons campus line. stay with us. ♪ a quarter million tweeters musicare tweeting.eamed. and 900 million dollars are changing hands online.

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lou: we like to hand out dunce caps to politicians who lie, cheat, and distort the truth, we ha a lot of candidates, tonight. it is two democratic dunces,

competing for title of most despicable dunce, on t 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 dunceaps tonight. you decide w is the bigger dunce, we learn today this filner, is actually asking the city of san diego to pay his lega 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.

wellot such a good mayor and on the other hand, we have weiner last night, weiner, refused to answer a direct question fm new york daily news about whether he still se sexting women on-line, he said, quott, you can quibble abo beginnings, middles and ends, but what we're talking abouttis over a year ago. it one thing to be a creep but to be obnoxious narsistic creep? weiner's arrogance deservee a dunce cap. the mayor. filner against, is hanging on spite calls to resign from 7 of 9 san diego city council members,hairwoman of democrati 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 diluton earns him, we don't oft give two at a time, but he is the winner. and weiner stays in the race though. in every day, despite cal to step down fm 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 mes 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 shoul not be mayor of new york, spitzer's campaign is suggesting that weiner is a bad hus bant fohusbandor msing his e huma -- forcing his wife huma to defend him onhe 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,he spitzers and filners, they cannot be serus, but we're sorryious about the dunce caps -- we're serious about our dun caps, if they elect one of tse folks, the dunce catches will be ying. >> a military judge, hands down ♪ ♪ ♪ ♪ [ male announce] if y can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summervent, going on now at your authorized mercedes-benz dealer. but hurry, offersnd july 31st.

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

the accident, driver charged with multiple counts of hocide. lou: a military judge today found army private brad ly manning not guilty of aiding the enemy. manning was convicted of mor than 20 thundershowe 20 other cg espe an ong and threa ong. >> and penn state's former president, two other top administrators order to stand trial on charges they corpsedp the jerry sandusky child sex abuse scandal. spanner, and curly say they are innocent and were not aware of allegationsad 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, wha sandusky did, was not a coupl 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 initnesses that the corroborate when prosecution wants, these men were told, they knew, it good knowledge that something was going on and they coverep. if they prove theover-up they face a lot of time in jail. lou: and to bradley manning. found not guilty of most serious

charge. but fing 136 years in prin. >> well, let's break it down, most serus charge, aiding and abetting the enemy, but prosecution would have had to prove, that h 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:hich is there for that purpose. >> right. so, the 10 ears per count, then have you theft of government property. and it addsp to 136.

128. more than life. lou: argument in thi case, prosecutor saying he had to know that al qaeda would have access to the information, on wikileleaks. 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 cssified information. that is wt they played on. i think that judge, kind of did pro verbal spit the baby. there -- proverbial split the ba. 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,is -- i mean how can you not say this man betrayed

his country. >> he did, absolutely, but from a legal standpoint, can you prove, and prosecuon did not, he knowingly sent this out knowing, knowing is key, knowing that americans would beilled. lou: turning to if you will, real housewive 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 b 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 out. lou: okay. take a second to join o 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

lou: stocks finished flat today, investors remn car cautious ahed of tomorrow's policy. joining me now with his outlook for the market.

s& chief equity strategist sam stovall, what you are expecting from the report? >> i think it will show weaker growth in second qrter 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 investo to be looking -- i apologize with what is going on here, i, pollgisapologize to everyone. >> i expect if gdp ces in stronger than expected, i think most people don't expect a surprise number, they also already know that fed haa talked out ofothiders of its mouth,

one saying that economy meeting strengthening and other saying, not so fast, i 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 s 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 ndamentally 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 rat are likely to ri, but so will earningsnd possibly share prices. lou: your outlook for the year? >> they will possibly go up. >> you areot 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 ll look to middle of 2014 with improved economic and improved earnings information. lo thank you, sam.

up next, house replicans approachingiim greg rorm -- immigration reformn a careful delibera way. and some of them have been accused of wan to take up the "ganof 8" bill from senate, others say it dead. we talk with hse judiciary commiitee chairman bob goodlatte, next. right now, seven years of musiis being streamed. a quarter million tweeters are tweeting. and 900 miion dollars are changing hands online. that's why the internet needs a new kind of server. one that's 80% smaller. uses 89% less energy. and cocosts 77% less.

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lou: hou republicans demandiding

that irs stop obstructing their invesinvestigation ask agent's targets o 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 aationalization 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 b with you. >> let's start with matthew boil, saying areou 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 o 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 s on, that is what happened in 1986, with an easy

pathway to citizenship, and then, we had no enforcement. we sll don't have the enforcement. then, the senate bill also, gives that pathway to citizenship, a special fashion wayhat people --athway 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 diffently 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 represenng the "gang of 8", legislatetion in tha conference, andould as senator schumer made clear, he would be delighted to be in confence with the house, where he thinks he canake advantage of less talented nd 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 b produced that a majority of house republicans can support. i don't see anything remotely like the senat bill that house republicans is support, 70% of democratsn senate votes against senate bill, i guarantee you, if sate were brought to floorf 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 rublicans

in the hou he grade ideas for immigration reform, to grow our economy to control our borders to prevent illal 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 i amounts to nothing, but i believe, absolutely, that you have csen the absolute correct path to succeeding and passing immigration reform and border security legislation. also think that the replican party, has proved itself capable of absolutely screwing up opportunities with abandon. and one hopes for sake of millions of illeg 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 conference. so i guess i would ask you, would it not be more rational, and perhaps more efftive to begin with the first bill, in conference with senate? then move toward immigration reform. with a patho legalization? >> we're insist ant in the house that not only do youave to do the borde enforcement and interior enforcement and the employment verification, and entry/ex 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 citizenhip, uty legal status woulde granted to people who are not legally he. there is an overwhelming concern that would lead to another wave

of illegal immigration. yes, most important thi now is is produce legislation that show right wayo do it, thank you for your comment washington poft releaseposteased a poll thd american agreed that a step-by-step approach, individual bills isha they prefer over the comprehenve bill passed by the senate. but first step,s 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, i my opinion, house is not doing anything like senate's pathway to citizenship. lou: am i hearing y 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 theres a lot of discussi with leaders in senate, about wheer there is any mertight having a conference. -- merit to having a convent, i my opinion, most important thing to do is pass legislation through the house, see what american people's respond is. so far it is good response. ifhat continues then maybe sena the come around tooint

of view that it should not be done the way they are doing it. lou: thank you congressman, have you get to a challge in front of you.

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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 cu 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 couplpling rate cuts with what he calls one time hits on overseas earnings and slowing rates, such