we will tell you how to protect your identity and finances if and when this happens. that is it for tonight' "willis report." we will see you back here tomorrow. lou: good evening, everybody. thank you so much for being with us. obamacare hitting taxpayers with anooher broken promise today. as it is revealed that the obama administration has quietly delayed another major provision of the federal health care overhaul. so quietly one might think the obama administration has been hiding that dey from the media and from the american people. the obama white house forgoing a mandatory cap on insunce company deductibles. the obam administration, as a result, will not putthe limit

on the out-of-pocket st for individuals until they now say 2015. health and human services has given insurance providers the go-ahead to charge whatever they want. this was contained in a february department of labor regulatory report without comment likmuch of the heah care law, it has been dellyed by the president. listening to kathleen sebelius earlier today, you would've thought that the obamacare

rollout is going smoothly that her department was simply flawless in execution. >> we are implementing the law. we call it the law. not a political discussion. it is really the law of the land. i think that it is our job to make sure that people are aware of what coming. aware of the benefits. lou: typically these are not altered or changed by the swping hand her the full law was supposed to be ilemented by next year and instead we have seen a number of delays and waivers and outright broken promises. the president famously promised that if you like your insurance, you can keep it. some will cut your hours back part-time. in order to comply with the law. the cbo estimates tt 6 million employers will do exactly lat and drop coverage by 2019.

a law that penalizes those without insurance remainsin effect. if you are in congress or a congressional staff member or a member of the union, you just might be okay this includes documentation from the health and human services department, showing that those who had been granted today had gone to organized labor. today's obamacare, part of a seemingly uneven patern.

it follows e plan to ignore the legislative process concerning mandatory minimum sentencing for drug trials. ining us now is congressman trey gowdy chairman of the subcommittee on immigration and a member of the house oversight coittee as well. also a federal prosecutor for six years. congressman, great to have you with us. if you will would, this latest delay in obamacare. what is your thought on this creating burden for the individual? >> republicans are criticized because they want to defund obamacare. bu it's okay if the president wants to not enforce the law. we are repeatedly told and in

fact iead somewhere over the weekend that this is a conservative supeme court validated. so my guess is we are going to have a very robustdebate this fall. clearly it is not, why don't we just start ove. it passed without a single solita publican vote. let's see if you can find it without a single solitary vote. lou: can you repeal it in reality? >> we are going to need the

senate to repeal it. but there are lots of laws. in fact, you and i and another segment may discuss the attorn general doesn't like a law. so he is just not going to enforce it. well, if it's good enough for the attorney geeral or the affordable care at al and just ignore the immigration law and they don't like it, then why can't republicans when you have something as wildly unpopular as the so-called affordable cre act, it was passed without a single republican vote. we expect to fund it just because it passed before many of us got to congress. my suspicion is you're going to have a robust debate this fall about just how unpopular it is. lou: you mentioned the attorney general describing th leniency that he wants to bring to drug offenses and offenders and

humanarian releases now, yourr@ reaction to this? >> it is a shame that he dooesnt enjoy his job more. he wants to be a criminologist sociologists, a philosopher we have had mandatory minimums for a quarter of a cntury. and yet he waits five years into his tenu as attorgeneral to decide he doesn't like them anymore. most people serving job assignments say they have nothing do with that.

quit prosecuting him because you havejurisdiction in all drug cases, let state posecutors handle tis. the option e has chosen is the least desirable of al three. the way to change that is to change the lw and not to go to a conference in san francisco and played a part of a criminologist and a prison warden. lou: many parts of the attorney general does play does not include law enforcement itself. it is indisputable. that dug crime and drug offenses in this country have sen dramatically over the course of this past bter than three decades.

we have an attorne general talking about this being point out, which is frankly being alrdy honored by most state prosecutors and that is that they do not ake up his minor, if you will follow them, minr offenses. so one wonders what is this attorney generalthinking. >> i think he's trying to pay back some political debts.

>> he just wants to pick on prosecutors. you know, we have a great u.s. attorney in south carolina. a fantastic ooama pointy end u.s. attorney and he decided his resources are better spent on health care fraud and mortgage fraud and they don't prosecute low-level drug dealers. let the states do it. it's an easy fix. lou: he did not designate state, local, federal, are doing the bidding of the drug cartel.

especially they would make this kind of commitment. especially when it's clear that ourborders are not covered. but it remains exactly where they have been. they are not being interdicted and they are not bng reduced. why isn't there a discussion on the part of this administration about winning the war on drugs.

the so-called war on drugs has not been successful. i will tell you that what is this alternative strategy? , ook at some crime scene photos when i was a state prosecutor do to innocent human beings. he has been a prosecutor for about 20 years. he has been aging for about five years. other than letting people out of prison early, what is his strategy? >> letting people out of prison is releasing this. you have written a letter to the attorney general about that

release after he served in the high court in mexico, which determined there was a technical basis to really sit. dea agnt ho was tortured and killed by mexican drug cartels. this particular defendant should have faced a firing squad. he should've been harmed. and the fact that he is gog to be let out of jail on a technicity after 28 years of a four-year sentence, he nee to be extradited and killing a law enforcement officer to the rule of lw. so i'm sure the attorney gener

is just as outraged as i am and i'm sure that this did untranatable mixer that mexico understands. lou: many havedied in the wa in syria and afghan and afghanistan. and you know, they have absolutely no influence on u.s. policies towards mexico.

thank you, congressman trey gowdy. they would drive up prices for consumers. it is certainly not a free market, i will point that out, if i may. the four major arriers already accounti for 80% this is the acquisition that was completed in juneafter major concession. peace talks between the israelis and palestinians. fox news middle east

lou: breaking news out of egypt tonight. a protester supporting mohammed morsi shot ead today i cairo after a violent clash between supporters and the military. earlier in the day residence ere pelting on nyc upporters with rocks and bottles. protesters responded and overall these demonstrations have been well, not cecil, butertainly not reached the levels of violence that we have witnessed

previously. so far they have done. >> absolutel most of the action outside of that is that th brotherhood has launched an insgency. they foify their positionsnd are protecting themselves, shielding themsees with women and children andfamilies and in the center of those enclaves they have hundreds if not thousands.

lou: we are talking abo what happened in cairo, believing that theilitary could stay out of this. >> i don't think that they want to do that. they are trng to show the world that they ar not happy with those militants. as you can see, egypp, civilian egypt really tried to demand

the. lou: no one knows who is in the wrong. these are uncorroborated reports that these are out there, coming from the whistleblowers. how seriously should e take those statents and how concerneshould we be? >> we should be very concerned. @%ere are regular officers and the other half is that incudes one that attacked the embassy o consute. they have a lot of weapons, including antiaircraft missiles. not so much actually from qaddafi. so now we have that.

lou: thank you for the update. where those missilesight be and nowe have accounts of where theissiles are when they are indeed missing. we thank you. turning to wall street, stocks higher following retl sales. and the dow jones gaining 21 points. the nasdaqs up 14 and a a hal points. apple soaring after investor carl ichan has taken a long position in the coany anhe wants a bigger buyback program. you understand what mr.chan wants. he wants the money.

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lou: the fourth estateassing on embattled city mayoral candidate athe winner today after a let it slip or did he that former secretary of state hillary touch and plans toun for president in 201 heres what he told a buzz feed reporter when asked aut his wife. it. >> to you know what h role in hiary's 2016 campaign will be? >> do. >> what will it be? >> and not telling you. [laughter] lou:hy would anyone take his word on anything is frankly baffling to me. this is a man who not just one but two scandals. by the way, we don't even know when it ended. he is not apologizing for calling one of his opponents grd,. i was really pulling for the other fellow to kind of like -- well, never mind. and he has a record, 80 percent

unfavorable ruling. unfavorable. a nasty fellow like this has an unfavorable ruling -- approval rating, if you will, you just have to wonder who the 20 percent who appve of him. while we'ren the topic of inflated democrati egos, last night, the central john oliver absolutely destroyed chris matthews over his claims that senator rand paul will come -- run and when the republican nomination for charges 16. >> making sound predictions is what chris matthews does for a living any may have a bit of a problem. findingnd bites of people saying things that directly contradict the klan they're just made, that is what w do for a living. wh takes chris matthews could go all theay to the white house in 2008? >> let me ask you about rudy giuliani. i believe he's not only running,

but you will when this whole thing, around the next election. >> that'sight, yeah. lou: for years ago, predicted congressman michele bachmann would it be to mitt romney for the republican nomination. we are more than three years away from the 2016 presidential ection that is 11,802 days, if you are keeping close track. do you want to know how dumb it is t be speculating about who is going to do what in 2016 right now? let's go back to august of 2005. the front runners inhe decrat nomination in one gallup poll were hillary clinton, 40 percent support, followed by john kerry with 16, john edwards had mustered 50 percent sport. that pull at eight democrats on theist. not one of them was named barack obama. the front runners from the republican race, reachuliani, do well. 27 percent of followed by john mccain who had 24 percent.

connelly's aice, 19%. so wha does all of the 2016 talk me right now? as you can tell, it does not amount to must -- much. it is not rally that significant, but it can be cause when all of that premature prognosticating against it usually signifies the arms that. don't listen to this, mr. obama. onset of lame-duck status. the good news, even more time for a little golf. always so very helpful federal government. now the department of education is out with their report on school safety. and you will not believe what they're recommending is for students and teachers withhe shooter situation. what would you take to a gun fight? we take it up next. ♪

you tell us what you want to pay, and we give you a range of coverages to choose fr. who is she? that's flobot. she's this new robot we're trying out, mostly for, like, small stuff. wow! look at her go! e's pretty good. she's pretty good. he flobot, great job. oops. [ powers down ] uh-oh, flobot is broken. the "ne your price" tool, only from progressive. call or click today. a quarter million tweeters is beare tweeting. d 900 million dollars are changing hands online. that's why hp built a new kind of server. one that's 80% smaller uses 89% less energy. anand costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to grow. this&is gonna be big. hp moonshot. it's time build a better enterprise. together.

♪ lou: the department of education released a 67% report on emgency planning which contai, frankly, absolutely ridiculous to buy some up to defend against a school shooter. we wil tell you all about it. the agency sing there are three basic options that allow them to manage an active shooter situation as they put it, run away is one option. -as if a place as possible or fight back using things such as fire extinguishersndhairs against a shooter. education secretary bary frank and aprently does not realize you cannot help run a bullet. and you should never bring a knife to a gun fight. usually cannot bring a fire extinguisher to a gunfight and expect those students and those

two just to survive, yet they did precisely that in this report. this is our federalovernment helping out our nation's schools i suggest that you talk with your children very cefully about what you think they should do. by the way, the repor did not once mention having aed guards in our nation's public schools, one-third of which already have them. florida officials recomnding nine months' probaon for two of the thrhree teenagers charged with the btal beating of a 13-year-ood on a school bus which made national headlines when security camera footage of last month's incident with viral earlier today those teenagers made their first court appearance, but the final decision on a punishment is not expected until the end of this month. the new mexico supreme court ruling eectively that the people who don't speak english can serve and have a right to a serve on that state's jury. the court took up the matter

when a defendant appealed his murder conviction because a lower court had excuse a spanish-speaking prospective juror who spoke only spanish who had trouble understanding english. in mexico's supreme court chief justice greuel its missile did in fact violate the state's lot but nonetheless had been no objection in court. california lawmakers, have toe involved, don't they. a conoversial bill that would allow certain sperm donors to seek paternity rights in court. the legislation sparked by the case of actor jason patrick, and is -- in a legal battle with their for his former girlfriend in which he agreed to concede theoy through artificial insemination, but the tune out disagreeable will he should plan a boy's life. under current california law as sperm donor has no parental rights unless he is married to the mother or they're is a written agreement establishing

such rights before conception. joining me now to sort through all of this and more, former federal prosecur, fox news legal anast, former deputy assistant to president george w. bush. thank you both for being here. let me turn first to jason patrick and the sperm donor wants to be so much more. >> well, he does. he did sign a paper before the baby was born saying is, what the --ant to be part of the baby's life. he did sign that form. he did not relinquish custody which is the b thing that is different. the baby has even been born. l.a. california they're is a bi being presented saying if you're a sperm donor and sign these forms saying you want to be part of it and here's the hard part, involved in your child's life. i think as aublic policy matter what fathers to be involved. not just in paying child support, but in their day-to-day

lives, we want to support that. lou: a conflict of obviouslyn our society and culture that is going to work its way through. the think that it will have? >> at think there will. the california case will go rough. ifhe man can show that he really was involved in that child's life in the best interest of the child he should be involved. lou: obamacare, another broken promise. and there seems to be no law in obacare but even roy los -- have never seen a losso completely malval and obviously shaped by the executive. >> this law is breached, whether the president saying that unions will be exempt because they will come to them who supported this

bill. this is a good for unions. before obamacare was passed there were promiseof exemptions. up to 3,000 for businesse none of the law is passed by executive fiat, the president is the -- determining what parts it willl honor what parts willot. whethert is business is on the hookor obamacare or whether it is penalizing individuals who have to pay for obamacare at the expense of the plans that should be offered. lou: recourse. >> there is because the executive branch will love the will to change laws the legislation already made. it goes bacto nancy pelosi. lou: 4-years. >> has the daunting and then we read it. that is a whole thing. if you look at this, if they read t law before the pas it we would have seen all of these cars out there were there. now forhe obama administration

to come back and say we as an executive. sue anyone that is being hurt by this, which is all of us. a big class-action. if our caps are raised and we can't anything aut it, we can't do anything about it, that's a class-actn lawsuit in the biggest terms. lou: his house like an appropriate place to start talking about taxation without representation, a place to talk about the urping. >> that what it is. tech'smbalances. i'm not so sure about taxation without representation. lou: i was just using the supreme court. >> go for it. [laughter] lou: any money is attacks by the definition. >> witho representation. lou:et's turn, if we may, one issue in new mexico. the supreme court had designed

-- decided that you must give a jarring as i speak english the right to be empaneled in a jury. while. what is your reaction? absolutely crazy. we should having this only as the standard by which law should be interpreted to or ride, and imposed. and nothing short of that should be acceptable. he should not be up to the states to determine whether of english is going to be accepted or another language accepted in a court of law. lou: is it our right of that juror? is it the right of the defendant -- >> aserror of his peers, but a little different. this person is a citizen of the united states. lou: what difference does it make? >> it is talking about an alien. lou: but we're not. not be a will to understand english. >> i hate to say is immobile could happen would be bring in someone who could translate

right there at great expense to the state. lou: is there a legal bis for doing so? >> britney in -- lou: wse prices prevail, the defending our 71 -- can understand a word, but -- lou: that is my question dealt. >> on that jury. lou: we have to go. you are giving me a lawyer answer. i want a quick answer. i have to go. lou: what? >> it's not nonsense. lou: wwill be back next week. we are going to have the answer by then, too. next, another fed president speaks, and mist on the market sponse. wa street greatat michael wa street greatat michael holland joins any last requests mr. baldwin? do you mind grabbing my phone and opening e capital one purchase eraser? i need to redeem some venture miles before my demise.

okay. it's easy to erase any recent travel expense i want. just pk that fligh ght there. mmm hmmm. give it a few taps, and...it's taken care of. th is pretty easy, and i see it worksn hotels too. you bet. now if you like that, press the red button on top. ♪ how did he not see that comi? what's in your wallet?

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lou: joining me now, holland balance fund president michael holland, great to have you with us. we now have a gain to report in the market. so are all of the concerns about a summer swoon over? >> we have a few more days left, and honest. reality is, yes. every summer for the last decade we have had thepportunity to lose a lot of money. we have had incredible things happen during the month of august actually. the european contagion, for example, was the phrase -- lou: i forgot that one. >> most people. we went off cliffs every summer. this summer people ability for the cliffs and they have not co. that is a real problem for ople who are not only out of the market, but wse, a short market. lou: being short the market and out of the market here -- >> which most people a. lou: here looking at light

volume. it is terrible far it -- all you are you expectig it to pick up? good things to happen? >> continuing good things for an extended amount of time. the reason i say that, you mentioned just before the bre, one more fed president talking pretty aggressive. actually going to continue that have the fed presence. for the last for five years, most viewers are not aware, 150% plus. this year, i don't know. affect those who was up, how much? up to -- 18, 19 perct? that's impossible. yet we still at u.s. compani making a lot of money, such valuations are not high. lou: dennis lockhart, an ornized effort on the part of the fed to send out these presidents, fomc members, most of them, to talk about tapering.

law car started making a little sense, but he has beenhe complete allied air and saying there will not be tapering next month which makes all the sense of the world, frankly, to meet. that tells you what an allied air i am. bernanke has been talking about disinflation commend everyone keeps indicate a doreen it. we have nothing here to suggest that we are seeing any kind of lifting of price level. >> a good story. at the end of this process ducks fed will do what is said it will five years ago. and what they will do is support the market. higher stock. no one isistening. lou: they're listening to bill gross' over at pembroke telling them to buy bonds. >>nd warren buffett had said that bonds, somethi that viewers should listen to, one of the most dangerous things you can invest in, sometimes buyg

prices o down that you lose money. you cannot get a big payoff. lou: your look at the remainder of the year. >> still positive. all the things you just talked about. the u.s. federal reserve will support the stock market's. u.s. housing has turned aund. viewers feel better about houses. cha has not had thi season of glory. lou: let's hope it doesn't. appreciated. up next, senator lindsay gramm of little too cozy for some conservatives, one of them state senator primary challenger who is next. lou: and

♪ lou: it is a primary challenge

in south carolina against senator lindsay gramm. my next guest announcing his candidacy officially today. joining us now, candid for the republican senate navigate -- nomination in the race set of south carolina, lee brightly. we are delighted that you have announced yourandidacy and it is going to be fascinating. senator gramm has $6 million we understand in his campaign coffers. how much have you got? >> we just started today. thanks you for having me on the show. we got out of the gate tod and are looking to raise -- obviously we will not be able to raise as mh money, b what we do have is that true that liberty on eyesight and feel like we connect with americans and south carolinian is, so we think we had to raise enough money to get our message out which is what we're counting on. lou: that is the way that politics ought to be. we know that money does play a role. you would describe yourself, i believe, -- would you not, a tea

party conservative? >> well, we have a the ready caucus here in south carolina. the south carolina club for growth, one every year since i have been in the senate. governor hayley's t party scorecard. so we hav done quite well. it would like to take our ssage from washington. bfi to try to bring back the power of the state. the constitution abortedo take away for the federal government, but it will not be a function of washington pushing that power back. lou: facing a primary with the first female graduate of the citadel, businessman richard cash, why is lindsay gramm placing a prima, a two-time senator, what are your objections to the manndhat are you going to do about it? >> well, i feel like he has not show the he needed to show

conservative causes. he has been over in egypt running around with mccain acting as a community organizer for the muslim brotherhood. i do feel like he has not listened to south carolinian is. lou: community organizer for the muslim brotherhood? >> yes, sir. lou: i thought that is what i heard you say. they were, in fact, trying to bring the muslim brotherhood back into the government after the military had gotten them out of there. you also say to senator gramm has allowedust about all of his policies to be dictated by senator john mccain. why -- what do you mean by that? i think i know, but i want to hear from you. >> well, john mccain has been basically a tool for the democratic party for quite awhile and basically ifou start negotiations and say that

republicansre at eight and add democrats aren't busy, you will notice that mccain and cram jumped to why and larry. they're not best for initiating our freedoms when it comes to civil liberties. the lack of byrd comment, things of that nature. he had the audacity to say that the second amendment was for reasonable men, reasonable prices. the of the framers of the constitution were concerned about a tyrant but they had a great britain and did not want that again. that is what the second amendment four, defending liberty. lou: you did not think the founding fathers are reasonable men. you have said some things that very controversial. you have said that you would make it a crime to enforce a obamacare in south carolina, which, of course, would not have affects senses a federal law. you also -- is correct, issue its own currency? >> it was a study committee,

basically something in virginia that was just a study committee in case there was a collapse. it. lou: out, my goodness. i'm sorry..3

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and it's giving the internet the this&is gonna be big.. hp moonshot. it's time to build a better enterpri. together. neil: something i want you to think about. harry reid pitting black against whe, what seems he trodded out this familiar shift pump. >> it has been obvious they are doing everything they can to make him fail. and i hope, and hope, i say this seriously, i hope thatt is based on substance not the fact he is an african-american. ne: canou believe this? still doing this? still blaming racism for those unwilling to race to the president's agenda? the democrats agenda, hea spending but aa agenda clearly spent.