tv The Willis Report FOX Business December 12, 2013 6:00pm-7:01pm EST
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midnight, be sure to dvr us at 5:00 p.m. we will see you back your tomorrow. "the willis report" is coming. ♪ double mocha ♪ double mocha ♪ double mocha ♪ ♪ >> hello, everyone, tonight in "the willis report." if you like your health care plan i am dennis kneale in for gerri willis. politicians just never know when to butt out. pot is set to go legal into states next month and the government is meddling more than one it was forgiven. and class warfare in san
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francisco. who is behind the protest behind tech companies. and the cowardly compromise of the budget deal. the house voting on the bill right now. big spenders in washington plan to restore $63 billion in cuts that are already in place under the dreaded sequester. in the process, they are getting the deal done. leaders are blasting conservatives are objecting to more government spending. with more on that, we have steve moore. he is a fox news contributor. steve, let's start with you. you had a good phrase on us. you said this is basically surrendering to the spenders in both parties? >> yes, i believe it is. this is not the end of the world. but if you believe in limited government and a smaller deficit, this probably isn't going to make things better. in fact, it might make things a little bit worse. especially over the next couple of years. we are talking about $50 billion more in spending. this was on the democratic side
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as well. the republican side, we saw a lot of this and one last point. for those who think that republicans just wanted to spend more money, that is not so. a lot of republicans spending money on domestic programs. dennis: okay, let me set you up as you come on with this bipartisan budget proposal. hoping we can get the overall view of it. capping the spending at $1 trillion, although that is discretionary. and reducing the deficit by $23 billion. but that is over 10 years. that's like $2.3 billion. a 680 billion-dollar deficit just this year, and the feds were happy about it. this is go far enough? >> it goes too far as we are talking about increasing
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spending, but not far enough when addressing the debt crisis. what is happening is that increasing spending by about $63 billion, and then the spending cuts don't start until 2022. if we ever get there. the biggest spending cuts, price control, we have $700 billion of those in obamacare and there's already problems with those, unsustainable and what we need is a deal that makes a spending problem worse in the immediate term and we might never see those savings that they are promising us. >> okay, taking a look at this chart. total federal spending, $3.5 trillion, and then discretionary spending at 1.02, more than we were going to spend otherwise. sequestered cuts are rescinded. and then this deficit reduction, $2.3 billion a year. it is 0.3% of this past year's
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deficit. this is kind of embarrassing. >> i have been doing this for 30 years. and i'm kind of embarrassed to say that. so every time the congress wants to spend money, what they do is exactly what they have done here. they basically say that we will allow more spending than a couple of years. but then we will be really disappointed in our spending. and so this happens, half a decade or more from now. and i would bet you a dime to a dollar, the spending cuts are not going to happen. dennis: what you say? >> that's usually how it goes. there's other stuff in this budget as well. a lot of those messages are just poor examples. prisoners are now able to collect unemployment information and a budget conference you haven't had in four years, do
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you need that to make that happen? really? it doesn't address our debt and it actually pushes this down and we still have to address that big problem and there will just be another moment of crisis down the road. >> someone likened this to wimpey from the popeye characters. that seems like the entire essence of it. but on the $63 billion of sequester cut and restoring it, you guys can't even stand with the requirements that you put on yourself. why are both parties wanting to restore a? are we that damaged by a? it seems to me that gdp is looking good, unemployment is looking pretty good. >> the big story with the economy in the last couple of years is exactly that. that the economy has grown, even as these horrible sequesters were supposed to suppress the economy. the more government spending costs, the better it is for the private economy, but there was no economic rationale for not
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doing the sequester. and i have a very real fear that this is probably going to be the end of the spending. every year they will slip and slide and we have left congress out of this and they are never going to put their necks back in again. dennis: it turns out the only thing that could make both parties cut spending, because our government should not be spending $680 billion more every year than it takes in. that is just bad. but i'm wondering, what happens? do we need for interest rates suddenly to soar so that the interest that we have to pay a government that sores that we have no choice but to cut things? >> if you wait until that happens, you are left left with many choices. so you're making those changes now. what the conference didn't do as we still have the debt limit coming up. the federal government will hit its government and the treasury will start with this
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extraordinary measure. we don't know how far this will get, but there will be another debate over spending the debt when i comes down. dennis: okay, thank you for your input on that. >> that's a good point. every one percentage point interest rate raises the debt over 10 years by a trillion dollars and that's wants everything that we've done in this budget deal. dennis: we have to borrow more to pay interest on the previous borrowing it seems. okay, you guys are very depressing, but thank you for being with us tonight. >> thank you. >> a lot more to come, including the truth behind those curious numbers on the latest obamacare enrollment stats and as more states start to criminalize electronics, the government can't help but try to ruin it all. why this is making a complicated buzz kill coming up next. ♪ ♪ ♪ every day we're working to be an even better company -
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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 lasfive years - making bp america's largest energy investor.
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our commitment has never been stronger. solly bank has a that wothat's correct.a rate. cause i'm really nervous about getting trapped. why's that? uh, mark? go get help! i have my reasons. look, you don't have to feel trapped if our rate on this cd wigoes up, yours can too.cd. oh that sounds nice. don't feel trapped with the ally raise your rate cd. ally bank. your money needs an ally. dennis: pot smokers in colorado and washington state are choking up for a very happy new year. recreational use of marijuana will be legal on january 1. but as usual, the government's greedy hands are going to be all over it.
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a buzz kill for the new market. joining me now we have the deputy executive director of the drug policy alliance. if i didn't pronounce that right, connect me at some point. first, i happen to read a fantastic story in the new yorker a couple of weeks ago. i was shocked to hear some of the leading experts in the field say that to make legal pot work, we have to crack down even harder on the legal pot smoking. i thought of this idea of decriminalizing -- oh, i don't know. i think all drug use in the country is 60% marijuana. so why would government need to crack down harder? >> well, i think that the jury is way out on that matter and we have not even have the implementation of the laws in colorado and washington. but the very fact that we are even having this conversation certainly reflects the change that has occurred on this issue
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in the united states over the last decade. something like a 20% jump in support across the political spectrum in favor of ending marijuana prohibition outright. and that means that the conversation we're having in the country today is not should we and decades of marijuana sale prohibition, but when, and as you are raising, how to do it. so the real issue now is that what the voters of colorado and washington were in favor of was not a free-for-all, they were in favor of comprehensive and robust regulation, and that is what they are getting a. dennis: for decades and decades, i think we have 17 million regular pot smokers. for decades people have gone out there and they did just fine. but then we have government worrying about checking for fungus and checking for quality and look at this. in denver on january 1. they are going to have all of 12
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stores selling pot. and meanwhile colorado says, you can't buy with a credit card, you have to use cash. so why so many rules? why don't they just let the pot smokers continue to buy from the guy they are barred from? >> well, what we have here is a system that is put in place at the state level with licensing and regulation that has been put there by the voters who are actually very interested in knowing where will be grown and where it will be sold and where it will be consumed. they have a right to know that under this new system. these concerns exist and it's understandable. they are being reflected by the obama administration and the department of justice, which is even clearer about this in order to cautiously allow these
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innovations and experiences to proceed. dennis: you are far inside the circle, but trying to pull you out, do you not see anything kind of silly with the government kind of trudging in here with the extra rules and requirements? one for decades people have been doing just fine without government helping them out when it comes to smoking weed or? >> i do actually think that if we are going to have state-based licensing of marijuana and creating a legal market, once and for all, an enormous underground economy taken out of the shadows and into the light. but under the rule of law, we actually should be interested in making sure that the system reduces access to marijuana by young people and that it ensures that marijuana has been tested and that it is safe and that it is not being diverted into states that have legalized it. i think that is actually what the super majorities of americans want and i believe it is reasonable in this
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transitional moment. dennis: forgiveness for phrase, but it is safe and that is why government is approving of. what is the more important goal of legalizing it? weasel legalizing it to stop spending money on jails and courts and ridiculous enforcement? >> well, you and i may agree that the levels of regulation may be something of an overreach in one state or another. however, this is what this moment is going to look like. this is what the transition out of the extraordinary failure of marijuana prohibition has been like. the fueling of this enormous underground economy, robbing taxpayers billions of dollars of new in new tax revenue, the waste of billions more in what we have to do in one of the things that we can describe about them is that they all have safety features built into them
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and they are not permanent. they don't walk in all of this forever and the state legislators and the revenue department,. >> they can change the stuff moving forward. >> let's watch this very closely. because i think we are about to see a wonderful case study of just how bad government is when it comes to business. pot dealers and smokers have been doing fine on their own screwed decades in government will come in and then suddenly screwed this up. >> i think we will probably see something a little bit more balanced and not in the years to come, but i do agree that we have to watch it. dennis: when we come back, a user's guide to taxes. key changes before the year end and next up, the white house says a million peoplfor obamacaf by 60%. why you can't believe the
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>> this just in. the house of representatives saying that they have the votes to pass the big budget compromise. the good news is that it takes off the table the threat of a of a government shutdown and all that bad stuff or maybe two years. the bad news is that it does nothing to reduce the deficit very little and takes away sequester cuts. the house is that they're going to pass it in the u.s. senate will vote on it next week. onward we go to obamacare. taking a look at this headline of "the wall street journal."
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in an editorial today, the obama administration squashing a report card on obamacare. including phony numbers on its success. it starts out saying healthcare.gov has more than 20 million hits in 3.5 million and then it says that a million americans have gone through the health care exchanges and over 800,000 were deferred to medicare and medicaid, the remaining 354,000 sign-ups were on federal and state exchanges. so how many people actually have enrolled in the? just 137,000. so let's talk about the implications of that. we have a foreign policy adviser and temperature, head of wells fargo insurance. i understand the need to build confidence. because if you don't get enough
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people signing up, it can collapse. to what you think of the transparency versus the curious nature of the numbers? >> the president said we have to trust to verify i think that's where we are today. not only verify, but we need to clarify in the process. numbers are right around 365,000 individually the number that was released by the administration was a number higher than that and went on to the websites when people asked for clarification and it was 365 the women to enroll in the process. in a traditional practice you don't have coverage until you and and roll and it's required for buying coverage. dennis: lighthouses and even saying how many have paid a. >> that's right, and that's what we need. >> the insurance companies are saying about 10 to 20% of people
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have actually paid their first premium and so if you believe what you hear anecdotally, it's a very small percentage. and the number is probably going to be quite low. some insurance companies are making estimates that fewer than 50% are actually going to go on to pay those premiums. you can expect that the number will shrink as time goes on. >> so we are talking 70,000 people and we have another chart tracking the obamacare sign-up goal that shows you how far along we are not. the red mark to the left is where we are and then you see where we hope to be a ride march 31. are we going to make 7 million sign-ups by march the 31st? >> october 1 was the date on obamacare and healthcare.gov went live. so we are december 12, that happens to be my daughter's 11th
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birthday and we have 365 people and let's just assume that they went through the process and everyone of them paid. let's backtrack back and say, we will take this through the end of november. that is 365,000 and we had an uptick that took place in november. 260,000 and that's an uptick of 44% to between 8677 per day. getting to the 7 million that you need by march the 31st. and so basically 51,000. and whereas we think so far we have got me maybe 7000. >> everyday until the end of march. >> okay, so what are the implications if we don't make this by march the 31st? >> were not going to make that in and people in washington are
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saying that this might level out around three to 4 million people. and probably fewer than a million other people are people who are previously uninsured and the vast majority of the three to 4 million will get insurance due to these exchanges were previously insured and got kicked off the coverage into the exchanges and i think the broadest implication is because this year has been so unsuccessful, a lot of the commercial carriers are unlikely and then you will see a worse plan than he did in 2014. dennis: so it could get worse not better. okay. they actually came out of that we are not going to let people who got bumped out of their plans, were not going to let them back on. so what is the status with the insurance industry? and how we see this replicated elsewhere? >> you never know what's going to happen. but what they have come up to today, they are saying that they
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have not gotten the volume that they thought they were going to get. and as you decipher some of this, the level of participation in the plans has probably been the older population and we need the individuals to come in and help to subsidize the older population to get in there. but my fear and that's is that we lose more and shores as part of the process and keep in mind that we talk about insurance for the next three to four months and carriers have to submit their rates by april of the following year for a january 1 effective date. if the carriers don't get qualified or give credible data, they will be conservative in their premium estimates. dennis: survey said 30% of people are saying that i'd rather pay the government for not being insured and get involved with obamacare and also an announcement late today, obama asking insurers to be
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lenient if you haven't had a person find out by the deadline. so there's that kind of mess up the insurers business in terms of the actuarial tables and all of that? can they afford to be lenient? >> the good news is that there are so few people in the marketplace and probably won't take big losses. and it would've been a bigger, you know, they would have been bigger in this way. only 18%, the exchange was eligible for subsidies and that means most of the people going onto the exchange are paying the full price or not is it's quite pricey and it tells you the reason they are paying for this is because they need the coverage. and there's a lot of sicker people getting in the marketplace.
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dennis: one main issue is how things are working and whether they get the numbers on the finances. the other issue is how america is feeling about it. one group declared the lie of the year for 2013, president obama is if you like insurance you can keep it and another group is heralding the obama folks and an entrepreneur who is young and should be on obamacare. and then her deductible when of a huge amount and then her weekly payments all went up. some wondering what is that? the scorn and the duplicity and the lack of transparency. how much is that compared to the website glitches? >> if there's transparency, with
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the president has talked about that entire time he's been in this administration, they will get the credibility back with insurance carriers and they will get it back with the individual consumer. and we need this as part of the process because if we don't get people to participate in the process, as the doctor had said, we will have adverse selection of the process. >> i'm thinking that it's not such a great strategy, it would be nice to have one of those guys helping out. thank you. we appreciate it. and we want to know what you think. here's our question. do you believe the government numbers? log onto gerri willis and i will share the result of results at the end of tonight's show. and coming up next, part of our
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users guide, we show you how to get a reputable tax advisor. don't go away. [ male announcer ] e new new york is open. open to innovation. open to ambition. open to boldids. that's why n york has a new plan -- dozens of tax free zones all across the state. move here, expand here, or start a new business here and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and ows more businesses... we're open to it. start a tax-free business at startup-ny.com. hmm. mm-hmm. [ engine rev] ♪
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dennis: all this week on our users guide to taxes, giving you the information that you need to know to get the most from your tax return. tonight, we are going to help you find the right tax preparer. it turns out that 60% of people are expected this year to use a professional to prepare their taxes. joining us we have dominik and he is president of diversified private wealth. so i have to say that that 60% figure, surprisingly i feel like
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it's an indictment. should it be that we have a tax process to get professional help? >> the truth is the majority of americans should not need a tax preparer to do their taxes. but they do because it is a little bit complicated and following the rules can be complicated. but if you look at the average person, they send it in and they are done. if they don't have the and clinician, okay, hire someone and it simple and let them do it. >> if i if i itemize, detail 8100% of those who itemize ought to get professional help? >> i think the more complex your return is, the more that you really need a professional and you can start at the bottom and work your way up. honestly don't want to just do a mortgage deduction. having said that, if you own a
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business, you want to have a cpa on staff. : the first thing is howrganize to find a tax preparer. we have heard this from the word-of-mouth and from friends. but have you checked credentials and will be looking for? >> the complexity of your own return dictates which direction you go in. but every state has some kind of a accounting board and you can see if they are licensed and that they have a cpa designation and that they are an enrolled agent with the irs and that you can contact dirs in the better business bureau. so there are government resources. >> maybe i would rather have a guy that is invisible to the irs. >> in order to practice, you need to be enrolled. honestly someone who is enrolled , they have the
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designation and experience and background. dennis: okay, check how long they have been in business and their specialty. so would all have a strict policy? >> in preparing their returns, they're going to share that information and there is some of the surveys alone that show that they want to get you for your refund. but having said that, think about it, when you're handing a w-2 and your date of birth, if someone wants to do identity theft, they have the golden goose right there. >> was from that chart they put together on what to avoid attacks repairers. dominick says don't hire someone who bases their fee on the size of the refund. >> if they won't sign a tax return, run to the door. the irs, registered tax return
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preparer. they have to sign a. >> that is good advice. and coming up tomorrow, the guide to taxes continues and we will have a special call-in show we will answer your question as we wrap up 2013. when we come back, to did the school go too far when it punished a six-year-old for kissing? and next up, san francisco making its way to our studio. we will have that next. ♪
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dennis: google is under fire in san francisco. protesters are upset. the protesters problem is that google is using public bus stops. is google in the wrong here? david blesses even the less is the executive vice president of the cato institute. when you why don't you start us off. because i think that google is a national treasure. and they should be really glad that people are working, but yet they are beating up on the company. >> i think they should be beating up on the government because they are supposed to be issuing permits to those who use the bus stops. i'm not saying that i agree with this, but this is the law. google knows that they can get away with it by just pulling people up at the bus stop and
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then moving on without having to pay anything and are not getting ticketed and i don't think that the protest should be against google, it should be against the elected officials were not enforcing the law. they said it is like billions of dollars of revenue for the city's. dennis: i'm finding it hard to understand. it just seems like they are resenting google because they are rich. >> i would agree. they should enforce the rule and i find it hard to believe that a company like google is not being held to whatever legal rule that they have. texans like football and san franciscans like protesting. i had a friend or loved it until one day he said to me that every time i walked out of my house, there's a protest to stop something. stop this, stop that, stop football and whatever. and so he moved to los angeles where he felt like people were building things. >> so you're saying that you
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have a rich friend. because only rich people can live in san francisco and then they can only afford to go from san francisco to l.a. >> this was 20 years ago, so i don't know how rich uis. >> san francisco has a housing shortage. >> a group that is doing this, the san francisco displays in the neighborhood agency, the housing alliance, the central lines, all of that. and basically when the group gets behind us, or they just campaigning to get more money? where is the big damage being done? a google police standing at a bus stop? >> with civil rights and things like that come a lot of protesters are not making money
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and so i don't think they are doing it for that reason. and i'm willing to bet you that these groups are not getting a lot of money for this and maybe they should put their efforts elsewhere like protesting. >> but your point is that they might not be successful. the part of why they are doing this is to get attention. >> in his attention chasing, but i think there's an element here. tech employees are highly valued and then they get paid is a lot of money and there are people in san francisco who don't get paid as much. so what is the problem that some people are riding buses to work? >> if i am a google employee and i live in san francisco, i pay taxes and property taxes to be able to use a bus stop. >> yes, but the issue is that there are two sets of rules. the tax payer and then the
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corporation and google is not paying their fair share. this is the allegation. i'm not saying that it's true. they are not paying their fair share an abiding by the laws by paying for the permit. just pay the stupid permit. it's like 20 to and they make billions of dollars and i am not against capitalism or google creating jobs, not against any of that. and they apply for these permits in july. and they are still pending. >> so the city doesn't issue the permits on the protesters going after google. >> well, exactly. something they should be protesting in front of city hall. the google is rich and colorful. >> yet command they draw a good party. how many hundreds of feet from the public bus stop is my google guy have to be to be okay and subject to this kind of protest of a terrible rule in san
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francisco? >> i don't think you can just stop someone on the street. if you are a public transportation or some kind of large vehicle, you can't stop in the public way. but you have to stop and a permitted stop and therefore you must have the permit. and so it's not that difficult. >> google used to be so happy its successes. they were young and plucky. is this a sign that google is part of microsoft? >> it's partly true. you will find politicians and regulators starting to beat up on google because they realize there's a lot of money there and they are not giving it up other than political campaign funds. >> well, i think that -- we elected the officials to do their jobs. and one of the jobs to regulate the law.
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>> 40,000 new laws passed by state legislatures. don't you think we are at a point where we can have too many rules everywhere for everything? >> yes, i agree with you. but this is a rule on the books right now. therefore they must follow the law and follow the rules. >> weavers left and right, thank you guys for being with us. and still to come, a six-year-old, suspended for kissing a girl. and the district has let this kid back in the schools. but did he go too far? our legal panel weighs in with us next.
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♪ ♪ >> it seems like an innocent gradeschool crush. but it got a young boy suspended for sexual harassment. the 6-year-old admits to kissing his classmate on the hand during their reading group and this is not the first time that he's had problems at school. >> have you been trying to be good at school? >> guest. i does have a lot of energy. 6-year-olds have a lot of energy. [laughter] >> that is just killer cute. the superintendent easing up, changing the disciplinary offense to behavioral misconduct. but should he have been accused of anything? we have bill here with us. start us off.
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>> basically this is a situation where a kid does what kids do. he kissed a girl in class. i don't even know if she knew about it. but the school district, rightly or wrongly, they had to take some action based upon the fact that you have to protect students in this goes to sandy hook elementary school world and they said that they had to do something to make sure that this doesn't happen again and protecting students. so they may have gone overboard, but they were concerned if they didn't take action. >> so a kiss on a hand can be pretty threatening. what you say? >> well, i think that clearly they overreacted. you know, they labeled him as a sexual harasser not something that will stay with him the rest of his life. i don't care if they removed it from his record or not.
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it's out there, it's on the internet, it's on national television. >> a government agency, when they react like this, is it because they are in the wrong or is it because they fear plaintiff and lawyer lawsuits from everywhere and they are acting to defend themselves in the long run? >> it's a combination of a couple things. as the school personnel, they are mandatory reporting of abuse and neglect. and that is not necessarily abuse. but the point is that there is legal obligation and a federal law to protect anyone's gender from having any harassment. and i think that they -- i think of today they have it happen again, they would be asking this the first time. so the commendation of two factors. >> i think the kissing on the hand, though, with first-graders
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it happens all the time. so what should we do about it? what about the idea of letting the teacher take your? >> how about letting the parents and children teach them about boundaries rather than labeling them. the kid is six years old. we have an obligation to teach them and not to punish them and not to label them. but to keep them. and as lawyers we like to say that you can take this gunk out of the jury box but the smell remains behind forever. dennis: is that what lawyers say? that the first time ever that. [laughter] but what we are told is that with this we did was wrong? he kissed a girl on the hand and so what? >> it really wasn't wrong is my position. but you can't look at it that simply in the world -- >> oh, yes i can. >> their our zero tolerance, there's a lot of things that work their way into our society.
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a school district is supposed to protect. >> but there was no one in danger or injured were hurt. >> i have a six-year-old of my own. dennis: we have to wrap up right now, but thank you very much. and i thank you. health decisions. that's health in numbers. unithealthcare. every day we're working to and to keep our commitments. and we've mada big commitment to america. bp supports nearly 250,000 jobs he. through all of our energy operations, we invest more in the u.s. than any other ace in the world. in fact, we've invested over $55 billion here in the last five years - making bp america's largest energy investor.
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that's why n york has a new plan -- dozens of tax free zones all across the state. move here, expand here, or start a new business here and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and ows more businesses... we're open to it. start a tax-free business at startup-ny.com. >> the white house says a recent enrollment numbers on obamacare show the program is now less success, but it seems to be fudging numbers. including people who are signing of from medicaid. do you believe the white house? years with some of your posting. i believe nothing from the metal. ellen degrees. no, and i will not believe anything they say from now want. beyonce laughed on gerriwillis.com. 5 percent said yes, they believe to be 95 percent said no. be sure to log on to
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gerriwillis.com for the on-line question every weekday. finally federal communications commission chairman receiving no technical reason the ban cell phone calls on airplanes. the decision to allow calls is up to individual airlines. here are some of your e-mails on that. all right, absolutely not. i will drive before i fly with obnoxious cell phone users. under no circumstances should airline passengers be allowed to use cell phones. i traveled for 25 years. and was before cell phones. i cannot imagine flying coast-to-coast with someone next to me screaming into a cell phone. leslie from a york says, i don't think phone calls should be allowed in confined public spaces. send a text, don't make a phone call. who makes phone calls and all? all i do is taxed. coming up tomorrow, a special called fashion show.
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call-up. the famous. the last year your tax questions as we wrap of 2013. that is it for tonight on "the willis report." and dennis kneale. thank you for joining us. have a great night. ♪ lou: the house of representatives passing a bipartisan budget agreement just moments ago, despite the speaker of the house not so subtle war with conservative political groups. the right wing of his own party. his counterpart in the senate, well, the bill's state is far from certain. and lou dobbs. ♪ lou: good evening. the controversial paul ryan-patty murray budget has cleared its first big hurdle passing a house of representatives moments ago by a vote of 332-94. 1603 democrats joined with
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