♪ ♪ ♪ neil: either way, uppity up in the air, picking your pocket on the plane. welcome, everyone, i am neil cavuto. it is only $5, so what is the big deal? congressional leaders looking to doubly tax on airline passengers . i've been told that a good deal. and it's not clear exactly where all of this money is going. i am told that it will raise depending on the final tsa and i

could start eating vegetables, but don't count on it. we've had enough of it, all of it. the surcharge and the fees on top of these and we are supposed to be grateful and as everything else we have touched is a part of this. so have another look at the spending cuts. and since it is not an income tax, should we let it pass? my next guest is here. jamie, and to you on this. >> if you look at all of the taxes when you buy a ticket, it could be as much as 30% of the

ticket. fifty dollars or more could be a tax or a fee of some sort in this case, which is a tax on airline travelers are not the end of the day what strikes me is that this is just small ball and you have these two budget community tears coming together and this is what they are coming up with. with $80 trillion in unfunded liabilities in are talking about 18 billion maybe going to pay down the debt. >> you know, i can remember when they wanted to do the transaction charges and it's like, we were talking about this over time for wall street. so these little things add up and we have barely focused on is because of income tax rates, leave those alone, and we are not realizing that we are being reigned in another way. and if it comes down to this, it

comes down to semantics. they are essentially taking the money and going to use it and spend it elsewhere. and so that is really a tax and he might as well call it what it is. >> in this case it is an airline passenger tax. but they are right to say maybe if you call this, people will start believing that it's part of the. but i have to wonder where we are going with this. you have to wonder whether this is washington's way of saying that we're not going to cut the spending, but we do need money and we do need to pay for what we've got and so we will nickel and dime them. >> i think it's silly and and away placates things. >> what are republicans getting in return? >> the only benefit of this is

you can get this sequester part of this and that could be a good thing in the long run. but in terms of fixing our long-term fiscal picture, this does zero and there's nothing to do there. >> is it me or are we getting money or cutting money? my hats go off to them. but they say that creativity. >> well, that's right. and there's lots of places to cut in government and there are things that are part of this that can be cut and saved rather than these gimmicks like this are talking about this spectrum. >> why did they fall like this?

and put on these cheap to remember the good question. you know, i think it would be better to extended at the sequestration level and do it like that rather than actually kind of package they were talking about. >> if you're talking about this, the problems is that americans think you're doing something and you are not. and you have to reform social security and medicaid. neil: but they never do that. >> at the end of the day if you don't do that, nothing is being done. we can pretend it's a big deal, but unless you're in touch, nothing is. she won if you're going to talk a good game and bringing the spending and, that's a great thing to try to avoid. but it seems like we are just giving up the fight. we think we have a good shot and it may be this is kind of like

rolling the dice. >> it is just like, trust us, we will take care of this in the future. and so i completely agree with this and you absolutely have to tackle this as well and yes, the budget control act is only going to save $1.2 trillion over 10 years. >> so you're the guy that is really going to be screwed. >> yes, but that would be a part of this because no one is really thinking about the long-term consequences. >> i actually think that paul

ryan is part of this negotiation. and it's a deal that wasn't perfect and the president didn't play ball and neither did the democrats and there's no point in playing this game. neil: so if you can't come to an agreement, they will never be doing the big stuff. >> absolutely. >> it is going to take time and it will take a structure and this is under the gun and slapdash together and looking for some spare change instead of taking real solutions or causing some pain in certain parts of the government where wasteful programs should be a limited.

and so people can look at us and our lots of ways to cut things back to. neil: you're absolutely right. by the way, a lot of you are trying to avoid these charges and we are looking at transportation fees and charges. so how about hiking the minimum wage up and doubling it up. you heard this. enough is enough and they are talking at a minimum. what are the implications? >> it is all political. including this. it's simple, i'm tired of putting this tea bag into the teacup and having to pour my own coca-cola.

>> i would think that you have an inside thing. and look at that. what you are saying is that it has been put on more customers to do this and so be careful what you wish for? >> gas. and right now, the food is cooked to order and in the future it will be prepared in advance and you are not going to be getting the freshest foods, i don't care what you're talking about. you can only afford so much of this and you have to do something and it takes time. prices are going to go up to recover the margin and we are going to find out ways to get rid of people. they have no choice. the health care bill, minimum

wage. >> the argument is that mcdonald's and burger king, they are all making money hand over fist and watch undermine folks about is that this is a franchise and the margins are razor thin. no one hears you and explain why this is so easy. >> are investing millions of dollars into these businesses and pretty soon they say the heck with it and i'm getting out of this business. and there's a beautiful community oriented company. and it's a great company, community oriented and they can't make enough money to continue to make this work under pressure. >> cu soon at your nearest

mcdonald's. and meanwhile, do you like to play xbox? now, what if i told you that they were not other kids? and what if they are snooping? and what if i told you that this is not a game. this is for real. every day we're working to be an even better company - and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than any other place in the world. in fact, we've invested over $55 billion here in the lt five years - making bp america's largest energy investor.

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neil: in tonight alert, you play and you pay with your privacy. the nsa is actually snooping on video gamers. like world of war craft and getting information on potential demons among us. also on the millions of people that play xbox live. neil: we don't know who is taking this with ourselves or our our kids. >> yes, it's a big wasted effort

and it's personally invasive of people's privacy and i think of that this kind of kills the thrill because you are not -- you worry that the people you are playing with are not there to have fun, they are there to eavesdrop with you to see this. neil: especially they have no more intention of going after you and not. that can be a lot of fun, it's a good use of taxpayer money. and i now know that they can cap your phone calls.

>> at this point you have to wonder where they are not spying on you and you have to be worried about some of this through gaming systems and it's not just that they can track your digital information. and they actually found that they had to create a team to manage all the locations.

neil: it didn't stop a certain shooter in connecticut. some wondering if it even does what it's supposed to do. >> well, they found it -- they didn't find any evidence that they had actually produced counterterrorism and they spent millions of dollars studying these games and studying at one point, and one of the conclusions was that teenagers tend to prefer this when communicating with each other. you had to spend millions of dollars on a study to find that out? a huge waste of effort.

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the one i want you listen carefully. the statement that the president put out. billions of investment by the previous administration. dollar, and that's not true, it's not even close. but when you examine what it's talking about, it is not at the

price. gm took over lock stock and barrel and so is that really a good deal? when all is said and done, my guests will tell us. >> it is just like the administration said, they are trying to cost the government billions of dollars. >> is it better to be out of it then compounded? we could have gained that. what gm is doing is sending jobs overseas. so they may have saved 1.2 million jobs, but how many jobs are going out because the unions hold the company hostage and they cannot compete effectively in prices we can

afford here in the country. those are huge issues. we also know that the unions are the only one who are part of it. neil: i had no problem with companies expanding that. i just think that have this whole deal and predicated outsourcing jobs, it never would have happened. >> you are right. but it's not just the gm jobs, it's the people that build this and many of these jobs are preserved due to the bailout. >> what we do know is we can extrapolate from this fact and these people are paying taxes and incomes.

>> ford created a product that people want to sell and the reality is there are bailouts going on five or six years ago. >> julie, you talked about dealerships in the number that were forced to close. those are people whose livelihood depended upon as. >> i disagree, i really think that if the system had been able to work itself, they probably would have come out much better at head. and there are a lot of good examples. look at american airlines that was in bankruptcy notice yesterday announcing a merger. stairway to five.

>> different industries and different carriers. and it's an entire auto sector, which is essentially what is going to h going to affect not t detroit. the people around the country. >> i think that moral hazard does not exist. and whether if he screwed up, you get a bailout. neil: we went ahead and close a lot of factories and when the steel this deal was predicated, we said we would not deal, but we did. >> as we have said, it's

tougher. >> i think that this is a question we can ask about wall street. [talking over each other] >> i would say that i do think that the government is bailing out these big companies, smaller businesses are the job creators and they have this and some of them would've been hurt, sure, some of them were hurt. and i am a student of free enterprise. the management team failed to listen to the market. neil: if we were similarly add another wrinkle to work that way? >> probably, i think we could be on the brink even more. we once were to we draw the line >> i think that anyone disorders

say this -- neil: no bailout and no argument? [applause] >> that's not an argument that i disagree with. [talking over each other] neil: i would believe it. >> i think it's highly ludicrous and is government trying to run this when they can't run their own management. who is going to ask obama to resign? neil: in the meantime, how is it that 6 million americans have this? we added it up. a small busined with amazing rewards. with the spark cascard from capital one, i get 2% cash back on ery purchase, every day.

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neil: 6 million people kicked out. juan williams on a law that was supposed to help people get coverage. that was not the way it was supposed to happen. and now bill clinton says give it four or five months and we will even without. what do you think? >> i think that we have a massive job to do to reach 6 million people. neil: this includes coverage that you don't need that you will have to pay for or that you can't afford, but you do have to pay for it.

and so that is what is really tripping us up. >> i think you are right in many ways. the 6 million people that made a conscientious decision, they are going to find that the insurance includes one benefits but that the premium is going to be higher as a result of getting more benefits. neil: but a lot of them have these plans that have very generous provisions and they are discovering that the same benefits are going to cost them a lot more. >> it will, because they changed this and i understand the individual insurance market in great detail and i understand how the changes were made. for people who have insurance, they will end up paying more than they did before. neil: what about the fortune 1000 time companies and once the employer mandate kicks in, they have to decide, do i keep what i have or -- in other words, i

will go after my retirees like ibm and time warner cable that. or do i -- do i keep them as part of this policy? i can imagine many of them being switched to something as vivid as they have. >> i think there are two things that can happen. the plans will be downsized. but the bigger issue is the definition of full-time work from 40 hours down to 30 hours. and companies are taking a look at those individuals and they will be pushing those hours down to make certain that they don't cross the threshold. neil: and not provides coverage to them which could be very onerous to them. >> that is correct. and the individuals they are trying to help will not necessarily be a part of this. neil: i hope you're wrong on

this, but there will be a lot more people that have insurance and a lot more people who potentially won't even have jobs? >> i think at the end of the day that most people today will find their way through the system. but there is a part that i'm deeply worried about and that is that the data has to move completely through the system so that when you enroll, whether it's online or in paper, you actually get an insurance card and you go to the doctor and the doctor does in fact verify and find you in the system. and you could end up with a serious problem. especially they can't find you. >> they should have delayed the thing. >> well, i think you would be to test it, you could go through a very conscientious process. neil: ron williams, thank you so much. talk about making the grade.

a new report says that better looking high schoolers are getting better grades. and next, a mother says a teacher state to grading kids to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me. i'm with sttrade. (announcer) scottrade-proud to be ranked "best overall client experience." ♪ [ male announcer ] the parking lot helps by letting us know who's coming. the carts keep everyone on the right track. the power tools iroduce themselves.

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>> most of you did well, some of you can do better. what do you think? neil: talk about grading on a curve. kids have enough to worry about. we have an expert here to delve into the psychology.

normally the smartest kids are not exactly the most beautiful. but they were smart, but again, not stunners. >> of people are having a positive experience, we call this a halo effects. they attribute this to someone who is good-looking and they may respond more warmly in the beginning and that makes a person feel great and they have successful interactions and they go from there with an experience of success. neil: that would be like a teacher.

>> well, i think that there's a different explanation and teachers are drawn to what is pretty like all of us are. but the better explanation is that they consider good-looking, and those that can't shell out a lot of money for their bracelet. these are also the ones that are saying, did you do your homework, let me see your syllabus. so i think that it's a family correlation and probably makes more sense. neil: so you're saying the ones that are better looking and better groomed than their parents are guiding them in that regard. neil: my mother and father could've groomed me and i still would've looked like, you know, -- that's just me. [laughter] >> where is this going?

my concern, and i see this but generally the taller guy gets this or tends to get the promotion. they have studies that bear that out. those that are better looking just do better. and i'm not sure whether this is right. >> a lot of this has to do with looking at faces that are more symmetrical. should we look at that is the most important thing? well, of course not. what with you now. you have your own show. >> this is very true. and you have me thinking. i never thought of that before. but we are showing some of this, either this or the teachers in

my class. but does list, it is not a shock to me but it is a sense of reality that if you are not a perfect looking person, you do have a tougher road. >> i think things even out. but many have a responsibility for that kid that has low self-esteem. and parents have a job as well. and the lord gave you what he gave you. but there are certain things you can do, and young women who work for me, some of them are just now paying for their own races, and i say good for you. it's part of marketing. >> do you go out of your way to hire ugly people? >> we certainly don't discriminate based on looks. neil: what about you? to give that person less attention than a beautiful person? >> not at all. sometimes it's more that the

person has needs. so we need to leverage that. we're not going to start off with the same unearned advantage. but there's a law of diminishing returns. if someone is cheaper looking, they get and beat envied and attacked it doesn't help them out. >> you can't play on your looks coming up to the brains and experience to go with it and character as well. neil: ladies, thank you both. hang around with really morbidly obese people see what kind of thin by comparison. just a tip. meanwhile, watchdog liz macdonald and why she's not a tea party at. >> it is time for new leadership, a new generation of people, and attracting folks to broaden the base of the party. >> issue part of the tea party?

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>> republicans are in total disarray. whatever you want to call them, it is a mass. >> the tea party people that i know, and i know quite a few, they are fundamental patriotic american conservatives and a lot of them have been republicans. neil: we think it proves? >> i don't know ted cruz well. i met him once. he speaks to a significant number of voters and he got there the way he's supposed to get there. it's controversial without

question. neil: as much as dick cheney questions the message, he's walking a fine line. his own daughter is being just as disruptive. so does that make him just another tea party lune? let's ask a tea party god, dick armey. would he make of that? is the vice president and a bit of a corner here? his own daughter is sort of preaching the tea party values. all the years that i have been involved and and what i know is

that they love them for their philosophical commitment. but they need to be more strategic and this includes insisting that we have a government shutdown, which is destructive. bill bennett used to say and they are moving the ball on themselves and like fumbling backwards. neil: i know what you are saying, i appreciate what you're saying. but it doesn't resonate with a lot of tea partiers. that kind of thinking, what they call the rhino thinking, it is what is produced disappointing presidential elections and we are not going to do it again. we are not going to do it again with that same kind of mentality. and that cuts to the core with

what is the grand old party fight here. >> again, what i think they need to do, and i would speak to both the moderate or the conventional orthodox factions of the republican party, which is the larger of the two and working so closely with them in the past. you have to understand that the first outcome is for liberal democrats and big governments or have your primary and enjoy your differences and when it settled, understand winning with a republican that is an 85% agreement with you is better than losing to a democrat who is 100% antithetical to everything you believe. and both sides have to learn a lesson. so have this be a part of the primaries come another great thing, and come together

afterwards with a spirit of generosity and support the nominee against the democrat who is your worst fear. you have to understand a bigger disappointment here is better than the most horrible that you can imagine elsewhere. >> okay, we will see where it goes. it seems like it will be a divisive issue. >> let me just say that there are times when you can stand on principle and go absolutely nowhere. neil: that is absolutely true. dick armey, thank you. the more it snows, the more that the online retailer's rule? well, then you've been snowed. so i kn untilt was full. you'd be crazy not to. is tt nana? [ male announcer ] fedex one rate. simple, flat rate shippg with the reliability of fedex.

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not exactly free to do what they want. they have kids end they cannot shop because the kids want to their attention and. so go get aid him in the way? what the stake? >> i actually fate hillel take those people who want to shop of blind not fight the traffic they have to spend a little time on their phone connected to use the internet. they will find some time and get it done. >> it could go the other way ? >> there is a good boy this is the abbreviated seasonally 40 days we lost five days of good shopping because of the winter weather so amazon floods

cope with the of five advertisement so folks are stuck at home kyle the walls are packed so a lot of people will flock to amazon and ebay and they will benefit definitely this season. >> coca-cola tried to put an end now it is releasing another low-calorie drake. they are all confusing with 0 calories but doesn't that cannibalizes yourself? >> it is cultural. it is not funny but it is weird. asper table gives cancer supposedly. splat that gives you issues with your bowels but that did the 90s this is what i

reading. but the new state just caters to agreed movement is a smart move people located to stevia to the alternative. it had issues because the fda warned it causes cancer and infertility but now it is the factor and how it is safe in most cases. >> i don't know what to make of that with all of this obsession my brother is says said as a rail his sugary soda is is the entire diet but our real for obsessive or is coca-cola wise to seize on it? >> it is all about marketing people and health if you walk around downtown chicago with the health food fast food it is healthy.

since but that assurance co, every betty is of a health kick. >> ♪ it is time for the white cap. >> but the s&p 500 i wanted to get above 1810 this breaks down. >> but there is not a lot

going on in. not a lot of economic data and a. so rarely it is just the pricing. >> issing he will get a higher level. this year with the s&p. that will be the 40th record this year it is pretty amazing to see. it is another record. >> if the fed was not providing $85 million per month todd different with the fed looks at? >> all lots lower with the knee-jerk reaction and several months after. that is yet to be seen that is a downdraft in the market and. if we already have seen in it to be put have that already.

>> for the record the tapering will come after the first of the year. >> we will see if the market feels the same way. we will look at all of those locations tomorrow. kennedy: breaking news out of washington the outdated bloated political parties have come to an agreement to how they will spend your money. good for them. donkeys and elephants fall all over themselves with self congratulations but it is a little more than false compromise they will rob you blige. this is "the independents". kennedy: i am kennedy along with recent editor and chief matt welch and kmele foster