the policy seems to be benefiting superrich rather than our vanishing middle class. that is it tonight for "the willis report." thank you for joining us and have a great weekend. lou: thank you for being with us. good evening, everybody. president obama is repairing for a rare trip to capitol hill. there he will usher senate democrats out of town for the recess. but it is becoming clear that this president needs a vacation that is still 10 days away. president obama headed to an amazon distribution center in chattanooga, tennessee. there he delivered a wide range of speech on jobs, the economy, obamacare, just a little spin on the sequestered in the keystone pipeline.

take a listen to this gem today from president obama. >> this same group has kept in place this meat cleaver called the sequester that is just splashing all kinds of important investments in education and research. if public-sector employees were like the last two sessions come in the unemployment would be 6.5% instead of 7.5%. our economy would be much better off. we are now as president obama using two hypotheticals, slamming the sequester and the incipient cause of all of our unemployment problems. he did not mention that that is the very same sequestered in his white house proposed. the same sequester that he signed into law. ed henry will have more on the president's speech speech in moments. we will get into the reaction to those presidential style hypotheticals as well.esidentiae

hypotheticals as well. and the call for a grand bargain from senator roger wicker, member of the budget committee and others. also tonight we will be talking to the man at the center of the efforts to pass immigration reform in increments. the chairman of the house judiciary committee, congressman bob goodlatte is here to knock down some reports that he is ready to go along with the gang of eight immigration proposal. one of the leaders from the federal reserve speaks about whether he hears about further regulation of the housing and financial industries.

>> this bumping an employee at the giant amazon fulfillment center, president obama claims that he had a new grand bargain deal. offering to cut the corporate tax rate down to 20% in exchange for republicans accepting changes to depreciation rules or a one-time fee for businesses who hold earnings overseas. new money the president could then use to spend more on stimulus programs. >> sometimes it seems like they never miss an opportunity.

reporter: grand bargain 2.0. leaving out entitlement cuts that have been included in the original version. in the longer ties corporate tax exchanges to individual tax reform. a nonstarter for john boehner one small businesses to file individual returns to get in on the tax savings as well. plus treasury secretary tim geithner unveiled a similar plan in february 2012. would you rather deal going to deficit reduction, saying that we can reduce distortion of economic growth, permitting us to lower corporate tax rates in a fiscally responsible way. though the president is now proposing to use new revenue from the changes for new spending on everything from community college training to infrastructure programs. >> it is just a further left version of a widely planned and plan that he proposed two years ago.

this time with extra goodies for tax planning. reporter: many don't want to get on board now. it sounded like the man who is about to block approval of the keystone xl pipeline. >> they plan to create about 50 permanent jobs. those are not jobs plan. reporter: a lukewarm response happen. they went on to criticize what they called unrelated spending and bottom-line this has little chance of passage. lou: thank you very much.

the president saying the keystone would create 7500 jobs in august 50s. >> secretary john kerry wrapping up talks between negotiators in three years. secretary john kerry has largely been talking about the ever this morning. president obama stop by meeting with negotiators for just under a half hour. >> the president's support for our efforts, including his personal engagement for the party this morning has been essential. i thank him for them for that. we had a very positive meeting with the president and the vice president earlier this morning at the white house. lou: both sides setting the goal

of reaching the deal within the next nine months. joining us is senator roger wicker. member of the armed services committee. good to have you with us. you were not impressed by this grand bargain. >> no, it does sound like a rehash of the stimulus. we need corporate tax reform. even the president has acknowledged that needs to be revenue neutral. so here he comes today saying that we need to take the money and spend it and that is a nonstarter. i'm surprised that the president has moved off of the position on that. >> the suggestion that there would be a one-time opportunity, money taken from corporate

coffers in some fashion, that doesn't sound like something that would excite us. we know that it did not excite the business roundtable. but it doesn'tsound like it would excite many ceos either. >> that is true. >> there also a lot of people that are not members of these business groups. a lot of them talk about the individual rate and we are interested in making our corporate tax more competitive. at the same time we have to get to taae care of the small businesses that actually create the jobs and are still paying this at a much higher tax rate. so there are two sides to that also. lou: there looks to be a significant trap. we have 23 million people in this country are unemployed or underemployed and the president has already forgot that. let the republicans have an opportunity to lead us on this

issue. and are you going to seize the opportunity and do so? >> well, here is how we are going to lead on the issue. the only savings we have had in the past two years have been the budget control act. we are making it very clear. we have made it clear in the commerce committee and we are not going to go over the overall budget numbers in the budget control acthe overall budget numbers in the budget control act. when we have the opportunity to make some progress on behalf of the american people is this sounding board for republicans who have been meeting with white house chief of staff on keeping these spending levels the same and having this is on autopilot to give it a little flexibility on the sequestration that we have. there is an opportunity there that the white house will work

with us on keeping overall spending the same. we can make progress here at the end of the fiscal year and the connection with the debt ceiling through 31 president is saying no negotiation. he's not going to negotiate is just going to do what he tells you. i will point you think the white house will reach a level of maturity they are expected to negotiate. >> you know, i don't know what the president means what he says something like that. of course there is negotiation going on. of course the congress has the power of the purse and as i just did it come the white house chief of staff has been trying

to negotiate something to give us relief from sequestration while tackling where the money really does and that is how this money has gone on autopilot. there are some things are nonnegotiable for senate republicans in the house majority, which is republicans come and we are not going to preach these hard thoughts budget caps of the budget control act and our standpoint shows that we want to make it clear to the american people are willing to negotiate with the overall budget level that we fought so hard for is actually inviolate in all these discussions to knock senator, we thank you for being with us. senator roger wicker. >> a new report says the white house discovering new ways to alter the behavior of some americans.

documents obtained sure the federal government a time when it calls behavioral insight. the goal is to influence people's behavior. like saving more for retirement. becoming more energy efficient. a similar teenager went to work in england and has been able to succeed for taxpayers to file on time. for more on this story, go to fox news.com. a fascinating story and we are going to take up with a number of our guests here tonight. >> attorney general eric holder has never heard the expression don't mess with texas. the supreme court has already ruled on voters rights. so why is the ag present?

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>> behind closed doors today talking about the voting rights act. our next guest says this administration is starting to circumvent the recent decision of the united states supreme court. a move he considers hostile to the constitution and the state of texas. joining us now is the attorney general for the great state of texas. greg abbott. he is a candidate to succeed john cemented cement thank you for having me. lou: you must tremble that he will not be impressed with your

credentials of the constitution as he has been so dismissive of his fellow attorneys and what the house and the senate have said. >> well, this is purportedly for the purpose of enforcing the voting rights act. but in reality this is nothing more than political theater. look at the way that this legal challenge against texas would launch. it was launched at a national urban league convention. this follows in the footsteps of barack obama's national field director coming to texas. this is nothing more than the obama administration trying to use the voting rights act for political purposes. >> the president has talked about this issue contesting this state of texas. i had to scratch my head.

because with all the bluster of pandering on two different occasions, they were not paying attention to what you have done to them. you have beat them about 10 to four and that is an average that would make any major league cringe. i just can't get over this. >> yes, instead of trying to provoke it. >> i pretty much have a parking is reserved. one is walking down they give us two more victories against the obama administration. so really what we think they are doing we are defending these

challenge is. lou: the law that he put into effect is modeled on the indiana state law which has been supported y the u.s. supreme court. is that correct? >> you are absolutely correct. the united states supreme court said that it ought to be perfectly constitutional and it does not disenfranchise anyone. and texas passed a law modeled on the indiana law. but if democrats really think that this is discrimindiscrimin atory, why is it that they require a photo id in order to get into the democratic national convention? we think and id should be required for the most sacred

vote. because the united states department of justice says it's %-voter fraud to take place.t we think the court should uphold it. >> you have other contests in court with this administration across a broad number of fronts. what is the next one to come to court? >> we always have some that involve peta. and we are also challenging the dodd-frank law because we have seen the habit that he is wrecking on the financial industry. we are also weighing in challenging the president's constitutional power. talking about his appointment to the consumer financial

protection bureau. the obama administration is challenging the constitution time after time. and they are pushing right back. lou: greg abbott, we are delighted to have you with us and we wish you success. thank you so much for being with us. lou: on that, senator mccain talks about the immigration debate. and the "chalk talk", we will show you how that might be a little uncomfortable for the maverick himself. we will have that next

lou: senator john mccain is making a lot of friends in the republican party. in this interview was a lot of rambling. there he slammed my colleagues at fox news. calling their coverage of the immigration legislation debate

so let's take a look at it the senate. you are part of president obama's new best friends forever. just today. >> don't get me wrong, you have earned the applause.

>> to joke it would be a tough choice is the candidates were senator rand paul and former secretary of state halaby clinton. would you like to switch parties now or wait a wild. back in march we might remind you that senator ted cruz was a wacko bird. it is almost as if you own the term. for pete's sake, the most notable work in the senate is you could say you are mccain feingold. mccain lieberman. who knows? that we know will be a democrat.

just send 2010. a behavior research center poll earlier this year found tte approval rating in arizona that you are not providing the president of the democratic party. the approval rating is 26%. that is the worst since the early '90s. maybe you should consider the house immigration legislation and refer to it as demonstrably better as an idea. by the way, i support the ideas on immigration reform.

and of course your own better nature. up next, house republicans on a careful calculated deliberation. and some of them have been accused of wanting to take up the gang of eight bell from the senate. others say it is dead. we will talk with the house judiciary chairman bob goodlatte. he will set the record straight on where he stands here next. that's why the internet needs a new kind oserver. one that's 80% smaller. uand costs 77% less.. it's called hp moonshot. and it's giving the ternet the room it needs to grow. this ...is going to be big. it's time to build a better enterprise. together. it's delicious.

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join us at projectluna.com only from progressive. lou: the agency is targeting some groups and the irs scandal. house republicans say they have received 12,000 pages related to the scandal. that may sound like a lot, but congressman darrell issa says that it is actually under 200 of a percent of the 64 million pages of documents and the irs

says this is relevant to the targeting scandal. house majority leader eric cantor in what they call a bipartisan group event highlighting the immigration experience. including a naturalization ceremony and a trip to ellis island. turning now to talk about immigration reform in the house. the chairman of the house judiciary committee who is leading the republican efforts. congressman bob goodlatte of virginia. it is good to have you with us. cement thank you for having me. good to be with you and your viewers. lou: you must talk about breitbart.com. saying point-blank that you are receptive to the idea of the

gang of eight senate immigration plan, which a lot of people thought was dead on arrival. what is going on? >> well, it is dead on arrival. something that i do not support. i have been working all year long, as you know, to do it is a step-by-step approach to do enforcement first and then find an appropriate legal status for people who are not legally here. it gives out legal status first and then we will go ahead and doing a verifier or a system and so on and that is what happened in 1986. we had an easy pathway to citizenship and then we had no enforcement. we still don't have the enforcement. then the senate bill gives that pathway to citizenship. a special pathway for people that are not lawfully here, people who have gone through the process legally for generations.

so we have lots of problems with the senate bill and we are doing a very differently in the house. the speaker has made it clear that he will not take up the senate bill in the house tonight. steven apparently this comes up because one of your aides said that he you would be willing to the conference with the senate with the presumption that they would be representing the gang of eight legislation and not conference. and senator schumer said he is delighted to be in conference with the house. we're currently he thinks he can take advantage of a less talented and gifted legislation himself. >> i am not going to comment on the senator's impression of the house. but the speaker has made it clear that i think the overwhelming majority agree that we are not going to go into conference with the senate unless a bill can support this

by all. i don't see anything like the house republicans are going to support. 70% of the democrats voted against the senate bill. 90% or more of house republicans would vote against it. we are taking a very different approach to this. i think the first thing is for the house to produce their work in these three areas and let the public, who we represent, judge that end understand the republicrepublic ans in the house have great ideas for immigration reform, to control our borders, to prevent illegal aliens from entering into our country. i think that they will see a very clear contrast. lou: i do believe that

absolutely you have chosen the correct path exceeding in passing immigration reform and border security legislation. i also think the republican party has proved itself capable of absolutely screwing up opportunities with abandon. so we are also hearing that this is something that they want the gang of eight to talk about. but the senate and the president of muscle their way through this trade so i guess what i would ask you is would it not be more rational and effective to begin with the first bill in that bill being border security, whatever it might be, and then move towards immigration reform.

>> these rules have to be in place before any kind of legal status. >> is as overwhelming concern that would lead to another wave of immigration. >> it shows that the american people agree that a step-by-step approach we have criticized us

for many flaws. that doesn't mean we don't want to do immigration reform. it doee mean that you don't want to do anything remotely like the senate bill. but the first step is to get the bills out of the house and then to have a determination made as to whether it would be worthwhile having discussion over the senate if they are willing to move away from their position and i may be possible. but right now it is up to the house to show the right way to enforce the borders and do the reforms that would help to grow the economy and create more american jobs. then we can talk about what is appropriate with regard to people who are not lawfully here. in my opinion from the house is not going to do anything like the senate pathway to citizenship. lou: am i hearing you correctly this would be a conference on border security that is either five and etc.?

>> i think the first thing is that once legislation is produced, the speaker and others in our leadership would gauge the support in the republican conference in the house for what the next step would be. usually there is a lot of discussion with the leaders in the senate and someone about whether there is any merit to having a conference. so my opinion is the most important thing for us to do is pass the legislation and see what their response to that is great so far and then maybe the senate will come around to the point of view that it shouldn't be done the way they are doing it. the one congressman, thank you for being here. good luck, you have quite a challenge. lou: home prices surge as the market shows real recovery.

lou: home prices rising more than 12% from a year ago lou: home prices rising more than 12% from a year ago according to acacia learn next. prices hitting lowest records in 18 years. richard, thank you for joining us. it has to be a lot of fun to see those numbers rising.

>> it sure is. lou: rising for the second week in a row. the affordability index remains as high as it is, if it continues to be that way, what do you think? >> mortgage rates are against that. the mortgage rates are component of the portability and next. mortgage rates are not going to determine the outcome of recovery. but still it is a key consideration. money is pretty cheap by any standard or definition. the affordability index is still out about it once onto number, which means that the average family has 172% of what is qualifying. we have a long way to go for the equilibrium. lou: regulating is an important part of the business. what can they do although we are

told that these definitions are going to be more favorable. >> of that is the outcome, lending will not become more liberal, it will just become more reasonable and more practical. we hope that this is how goes in the next 45 days. lou: what you hope to hear from ben bernanke? >> housing is well underway. we had an extremely strong quarter. the shortfall doesn't make any sense. that being said, you and i know that we can't predict rates. we hope to keep rates low

through 2015. lou: rates aside, what are the greatest headwinds that you can lose a little sleepover when you contemplate the housing market. >> of a feel for what ever reason to define the mortgage stuff under dodd-frank, that's going to create a problem and i don't think there is any indication of that. i think that they are going to resolve this in short order. that will help housing and housing is on a strong recovery right now. between kenny mayne and freddie mac, forecasting a 19 to 15% volume year-over-year. that is a standard. government needs to step away for a while. let things work. and i think that they have been doing that effectively for the past year.

i see no indication but based on this intent. what i heard was not the definition of grand bargain, even though i think that we can come to a grand bargain. lou: okay, start small. what do you think? >> we said at sit at a table and talk to one another. that is what the country needs. that is what housing needs. and perhaps that is what is on the agenda. lou: i join you in that hope. thank you for being here. up next, pope francis making unprecedented remarks about gays. homosexuality. it may have a number of catholics around the world more than an easy. father jonathan morris will be here to explain and to tell us what you expect

lou: the author of the new book has been ensnared in controversy a fox news colleague asked a straightforward question. why would any muslim want to write a book on jesus. according to matthew franck, the author is a religious historian. but apparently he doesn't have a degree of anytime and he declared himself to be quite a prominent muslim thinker in the united states as well. the author is reza aslan.

go to first things.com for the rest of the interesting story. controversy tonight following a trip to brazil. on copacabana beach. more than 3 million people responded to questions about the clergy's stating that if a person is gay, seeks god, and has good will, whom i to judge? they should not be marginalized. joining out his father jonathan morris. our fox news religious contributor. a great guy. so great to have you. he could have said many things that would've gotten more attention. in the church and out. it seems like the national media should have done a job on copacabana beach. >> that is right. according to city hall of rio de

janeiro, 2.2 million people on a 4-mile stretch of beach. so there's not a sporting team, there's not a rockstar there, it is just amazing. what amazes me is that i saw this guy, now pope francis, walking through st. peter's square just a few months ago alone without anybody going and hanging out with him. these are young people seeking spiritual truth. lou: this guy is an interesting guy. a regular kind of guy. at the same time, a man who seems to have had, if you will, the capacity to really draw your

attention to what he has to say spiritually. >> he took the name from st. francis assisi doucette preach always and when necessary use words. and in his own life, he is talking about it. he is living in a guesthouse inside the vatican. he is driving a ford focus. i drive one as well. this is a guy who is gathering 3.2 million people. lou: those are definitely great cars. lou: is this a blessing of

sorts? is that the direction of the church? here's my first reaction to it. >> here's the huffington post headline today. it was a breakthrough. what is that? in his a call to love. it doesn't mean to be christian doctrine, but it's there for good. lou: this is not an endorsement

of marriage spinet absolutely not. what he did was in a loving way say that i want all of you and we should never marginalize anyone. that doesn't mean that it's necessarily right. that is the first issue at hand. the one i support gays with the same marriage rights. for whatever that matters. but at the same time, i also support the idea about why not introduce the priesthood to married folks, whether gay or straight? >> honestly the reason it is not part of catholic doctrine. the catholic religions in theory hundred has chosen to have sold the clergy. lou: thank you. you have done an amazing job of bringing that into perspective.

we will be back and have a greater discussion. thank you. thank you for being with us tonight. good night from new york.

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this easy-to-understand guide will answer some of your questions, and help you find the aarp medicare supplement plan that's right for you. is. neil: more jobs on main street. more money on wall street, man oh, man, we must be on easy street because everyone seems to be loving it. everyone that is except the folks who say they aren't seeing it, any of it, and they're mad and they're bitter and they're here an only here. welcome, everybody, i'm neil cavuto. fox on top of a economy that appears to be goldilocks, just right. not too strong, not too weak, good enough to keep the fed printing and jobs coming and unemployment rate dropping and keeping stocks humming and big business guys hoping. talk after cut in taxes for them. part after grand bargain that will supposedly benefitve