after waste fraud and abuse going matters. because if you don't it's more abusive and a lot more day. concerning a huge con job in new york and i'm telling you that this is bigger than new york. much whether they live in new york or not. welcome, everyone, i and neil cavuto and there have to be a special place in hell for th ofd firemen. accused of a con job so big and so cra you all. collecting millions of dollars in benefits but reportedly faking things like mental illness. in some of these creeps even

pretended that they suffered from, working at ground zero after 9/11 and they never did. just arrested in a $400 million social security scam. in one the "new york post" called a ripoff for the history books. but don't focus on that. focus on how they haply screwed us and they're fine colleagues who are held in high regard by us. like this ex-cop. featured on the cover of today's "new york post", claiming that he suffered from depression but apparently not enough to keep them off jet skis. this man claimed he was so distraught that he couldn't leave the house. but apparently he could off the coast of costa rica. he took advantage of a disability program even though he was well enough to reportedly teach karate at a martial arts

all. dozens of cases like these and many thickening cases like these. and i still can't get out of my head how he shamelessly exploited 9/11 in some sort of traumatic stress is just made up. they were all in the same bogus claims, pocketing up to an extra $50,000 per year and we ended up paying for. and investigators say that up to a thousand people were involved. and again, think about that. $400 million and that is just one city and one investigation. one scam. if you don't think this is happening in other cities or other states, if you don't think that in the trillions of dollars that taxpayers build is out to god knows what and god knows whom. then you must be among those

leaves legalizing pot in some states. i'm not saying that we stop helping those who need and deserve it, but we better stop throwing good money to the back of those that just steal it. and when you build it in society, some feel a little bit extra entitled and the best-selling author says that we as taxpayers stop this nonsense. what do you think? >> you're right, we do end up not doing that. i want to applaud you for calling out this on national television. this is a disgusting story.

>> especially those who toiled at ground zero. it does a disservice to them. >> that is what makes it amassed about this whole thing. and you should demand that everyone who works rest be inspected periodically. the problem is that we don't expect good behavior from the people anymore. and we don't get good behavior from these people anymore. we live in a society where the system is screwed and it is okay to take advantage of everybody else and not think anything about it. but stories like this, these are big stories and they will eventually be found out. it's not the big stuff that

bothers us that's really the problem credits will step in and stop bothering us. and we have 25% of americans that cheat on their taxes. those stories teach our kids that it is okay to be dishonest. >> it is very well put on how we can sort of lose our compass and apparently in this case they are finding out that there was a message to getting this money in one advisor told us how they could get this. and here is how you get it. in other words come you have to act like you are forgetting things and you have to look like you are seriously compromised and mentally out of it in this is what you do to get this. and these guys did it. it is enough to make you vomit.

>> gas, and they have lost their moral compass. i think that it is one of the big things hat we have seen in our country. we have seen the basic integrity and honesty and a strong work a bit, doing the right thing. we don't value those things anymore. when we don't do those things, we don't punish them severely enough for publicly known. these guys be punished severely and publicly. so we don't set them up as any kind of an an example. this problem overall long-term is not going to be sold legally. it will not be solved by government. it will be solved by individuals in their homes teaching their kids what the value should be a. neil: well put, larry. congressman dodd website help republicans have to stop playing nice and just demanding paper for performance. to say yes to those that deserve

it. some things that appear in that is what worries me. i think that this is just the important cliché in the tip of the iceberg. there are many cases like this and you can find $400 million worth of reviews and god knows what else you will find around the country. >> you are absolutely right. we talked about this back in 2012. about how we have seen people with unemployment benefits that are running out and social security disability and once you get on not it is almost impossible to get out of it. i'm sure that we are seeing that down here in south florida and the thing that the republicans have to start doing is not allowing the democrats and president obama to demagogue them and put them in a position where they are seen as mean and hateful. but to say that we should not be encouraging people to not want

to get out of participate in the american dream -- when you look at what president obama and the liberals have done, they have driven up the poverty rolls and those that are on food stamps and today is the 50th anniversary of the war on poverty. it's a war that we have lost. $20 trillion and we have only seen a few% decrease. when he looked at leaders of the obama administration, those rules are heavily increased. so we have to get back to what works for an economy and not just try to increase economic dependency but economic independence. >> many times we can believe that. because it's an overwhelming majority of those that have worked at ground zero and elsewhere on 9/11. this is so alien to their inner fiber and their dna. that it justifies the

description. but what i worry about is that americans and these heroes are good to a court and will gladly help anyone and everyone. and they have their wallet open and they are willing to help out. what do you say are the lessons here? >> that is the thing. americans are benevolent. americans believe in the safety net. but we want people to bounce up and continue to climb the ladder of success. it is when you see people i president obama and other progressives and you have a problem in new york city with your new mayor, they believe that they should be able to take care people for the rest of their lives and that is how they get that vote from them. look at the obama funds. it was part of the clinton administration. this is not about doing what is best for americans but it's really a moral what is happening. because we are making americans

so dependent and despondent that they have to lead to big government to be their caretaker. neil: many of them are trying to be like this and it's not easy because these numbers are bigger. happy new year. >> thank you. >> the latest fight over unemployment. some republicans fear that they do not extend them yet again. and i want you to meet the woman who says that they risk looking clueless but they that they don't find a way to pay for them. [ male announce] 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. open to boldids.

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. neil: republicans feel like they're on the wrong side and tired of being called heartless. extending jobless benefits in the senate. because the alternative is to risk looking heartless if you don't. some say republicans shouldn't forget the jobless, but they really shouldn't forget the taxpayers to keep forking over more dough each year for those benefits. our guest joins us now. everyone wants to help out those who need it. there is the other thing you are

paying for and those that generally have to pay for. but republicans always get nervous and antsy. what do you think? >> yes, it is definitely an issue of concern, being labeled heartless and mean-spirited. but the policies of giving people money rather than growing the economy, i think it's a quick fix the long-term solution that this administration and the democratic administration parties have talked about. we have done 11 extensions of the unemployment benefits and we are continuing with this band-aid. neil: my issue is that we spent a lot more time and energy and money looking at ways to provide assistance for those who don't have work than we do today is helping them find work in providing an environment that will help them. >> exactly. while the left might paint them

as heartless and mean-spirited, they are going to do that anyway. many say it's about jobs and many have been saying that since i could remember. about 30 jobs that the senate hasn't picked up and i think that maybe taking a look at those before we move forward with more might be a good idea. >> whether those get the benefits or not, i can understand those that are looking for work. these benefits are at a point that but if you are at a stay at home position, the issue of going back to work must involve what it is costing me for child care and benefits have gone generous to the point where they don't have to -- were they actually have to continue this because i'm not saying that you

can live high on the hog. that makes a difference to some and they have to decide all of these issues. so the better part of this is that actually pays them to go out and find a job of like value. >> absolutely. you talk about single moms and things like that. if republicans do decide to move forward with this and he spoke about this in the senators who voted for cloture yesterday. i do not think that there is going to be -- long story short republicans are going to be painted as mean spirited no matter what. and so if they do have to vote for these unemployment extensions, they should at least get something for them and find a way to offset them. >> they are afraid of have a look if they don't. but they always forget the folks

who have to pay these bills and they look far more clueless when they don't. but we will see what happens. carolyn, it's been a pleasure. >> thank you sue on the controversial health care ads are now going for the gold. the health care law and the last tow. coming up next. lemieux go. >> minnesota is one of 10,000 reasons to get health insurance. welcome back. how is everything?

there's nothing like being your own boss! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order. good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex.

neil: the super bowl and only bigger. the winter olympics doesn't only command highballs but more than

two weeks. and does in the white house know it. the health care law at and the world is focused on the healthiest among us. but even lindsay ronni went to step aside. it's all down from here. and you would think the administration, after all with health care would get a clue. we have our guest here. >> you say that these are part of the olympic big boomers. why is that? >> lets take a look where they say oh my goodness. he is so hot. i don't have to worry about control, all i have to worry about is this. it's demeaning to women.

>> there is a guy that they have in pajamas and he is a big-time loser. you think anyone is going to listen to a guy like that? >> the pajama one was really stupid. neil: funny like a clown. [laughter] >> let's talk first about the advertising itself. i think that nobody out there understands this. but before you complain about it as you might want to do, keep in mind that over half of the federal budget is spent on advertising and it's been on military. by the defense department. it is be all that you can be. so when you have fun with this,

not everybody likes the health care law. >> so you are up against three out of 19 million. >> there is one thing. >> but the ads are terrible. >> does the government pay for these? >> it's not like public service announcements. >> on the outs for the super bowl, it is probably spotted. so maybe not that but even more than i do want to point out as we are critiquing these ads, you were ranting against the project.

>> and what i am judging is that we always get the what i am judt we always get the cart before the horse. and one that you'll fix the course make him stronger, do what you have to do and that is an opinion based on fact and opinion. [laughter] >> thank you very much. [laughter] >> this is a new future that we have. >> is that how it would happen. [laughter] >> oh, my. >> both of your points come you're going to see a lot of ads in the super bowl. it's just one more reason to not like the olympics.

but whatever you say about these private ads, and does not really move the needle? will they eventually do it? >> i don't know. i think we don't know. we don't know the numbers on how many young people have signed up for coverage. >> the percentage is lower than what you need. >> it is way too early to tell. >> there are a lot of young people. but a lot of them are not going to sign up for obamacare and it's too expensive in these ads will make it worse. these are going to make it like a craft show. many are not going to look at this and say, okay, that's great. neil: this just doesn't make any sense. >> okay, we are freezing up

here. what you think? >> 1670. how about that? what about jay carney in a speedo saying, hey, if you don't have obamacare, check this out. [laughter] >> that is so crazy. >> did you just call him the secretary of terror? i think that's breaking news. [laughter] >> we come back, a new sheriff at the irs. and it seems that he needs more dough. i want you to meet the guy with his one-word warning for congress.

neil: the new guy at the irs

apparently wants to make as big of an impression as james bond. the word is that he is getting this big-time today. many say with all the irs abuses he shouldn't get it. jura joins us right now. why not? >> i think that you senate. and i like that angle. and i worked on that for minutes at a time. i think the senate finance committee was shaken but not quite stirred by his argument. >> you are so smart and quick. it is very. [laughter] >> the first thing that popped into my mind when i saw this story was one of the complaint that complaints it was made in the declaration of independence in 1776 against the king of england and he said that we have created a host of new offices

and sent them to harass our people and we were talking about the revenue agents then as wel e talked about this over the year and there is a steady transfer of power from the people in the government and from the state to the federal government from and from the entire federal government to the executive branch. and this creates tens of thousands of new revenue agents with another step in that direction. >> i always try to give the benefit of the doubt with those who have ridiculously asinine pitches. so i thought what would make you think you deserve more money when you have been part of the conservative groups and screwing things up left and right. and then i say to you have to take care of a lot of this.

and so he says that maybe you shouldn't have those and republicans say they have to dial it back to what you say? >> i think that that is right. in the spirit of bipartisanship, i'm going to say that he have a point. and if the government has given him enormous new areas of the economy to regulate, it's every man and woman and child that is required to pay the penalty if they don't buy health health care under obamacare and there's a lot more managing and that takes more enforcement. and that is how it works. it's based on taking it from someone else so the bigger it gets, the more enforcement mechanism it takes and those with checklists that are looking into your lives. the answer is to pull back the

size of government and then he don't need that. if they are going to take this up, they are going to be a lot more. >> by the way, if you are going to be pitching for more money, then you have to have a proven successful record of doing other things as well. and i would say look to the old guy. because that wasn't working there. >> he didn't cover himself at turning this around. he came in after the housing bubble. but that is still under water and i don't think you have a good track record in the organization. so i think that it's two strikes neil: what do you think about me

going to a jackal lane fitness center and taking over. >> there you go. neil: it is always a pleasure, my friend. happy new year to you. $10,000, something having to do with pole dancing. and let's just say that for now you are going to work. [ male a] this is the story of the little room over the pizza place on chestnut street the modest first floor bedroom in tallinn, estonia and the southbound bus barreli down i-95. ♪ this magic moment it is the story of where every great idea begins. and of those who believed they had thpower to do more. dell is honored to be part of some of the world's great stories. that began much the same way ours did in a little dorm room -- 2713. ♪ this magic moment ♪

♪ this magic moment my dad has aor afib.brillation, he h the most common kind... ...it's not caused by a heart valve problem. dad, it says your afib puts you at 5 times greater risk of a stroke. that's why i take my warfarin every day. but it looks like maybe we should ask your doctor about pradaxa. in a clinical trial, pradaxa® (dabigatran etexilate mesylate)... ...was proven superior to warfarin at reducing the risk of stroke. and unlike warfarin, with no regular blood tests or dietary restrictions. hey thanks for calling my doctor. sure. pradaxa is not for people with artificial heart valves. don't stop taking pradaxa without talking to your doctor. stopping increases your risk of stroke. ask your doctor if you need to stop pradaxa before surgery or a medical or dental procedure. pradaxa can cause serious,somet. don't take pradaxa if you have abnormal bleeding or have had a heart valve replaced. seek immediate medical care for unexpected signs of bleeding,

like unusual bruising. pradaxa may increase your bleeding risk if you're 75 or older, have a bleeding condition or stomach ulcer, take aspirin, nsaids, or blood thinners... ...or if you have kidney problems, especially if you take certain medicines. tell your doctors about all medicines you take. pradaxa side effects include indigestion, stomach pain, upset, or burning. if you or someone you love has afib not caused by a heart valve problem... ...ask your doctor about reducing the risk of stroke with pradaxa.

>> it was a group of linemen and it was handled by a nonprofit. >> that is supposed to be a statute for the embassy but they described it as a stack of rocks, a and of course they suggested that when we have this. neil: do they call it a stack of rocks? >> i doubt it. neil: ursa to repeat that and

that has to be a heck of a thing. >> that is for the nasa mission to mars. >> it is a long flight. >> five years, actually. >> you need a lot of pizza. in more than $5 million for booze. that's a heckuva party. >> most of that is actually interesting. the senator from vermont who is on the oversight committee for the state department and $5 million worth of it comes from vermont. >> been in but in the end we all pay for this government. neil: you picked this because they stand out because of their absurdity? >> because we had nancy pelosi say that there are no more cuts to make in congress worked this out to spend $45 billion more this year than under the spending cap.

and it's really outrageous and we need to be cutting the federal budget and not increasing at. neil: so so you would just powerfully taken out of the state department and that is fine for you. okay, i've hundred $60,000 for artwork and veterans affair offices. >> that's a sad one. it's an example of spend it or lose it at the end of the fiscal year in agencies guarded by crazy stop just to spend the money. they have a lot of backlog. and really that should be putting the money to better use. neil: that makes sense. all right, this one intrigued me because it was a million dollars. >> estimates in the washington area and that was just the one bus stop and they wanted to build 23 of those at the cost of $21 million and i think that this example got the taxpayers so outraged that that pell grant

got asked and it didn't even work. neil: okay, that's a problem. >> 82 grand to monitor twitter. i guess things are working worry well. can you tell me about that? >> i think you have to be careful. the government will be monitoring not just your phone calls but also your twitter account. neil: that is interesting. this one is a little uncomfortable. do the couples know they are setting this? >> only 81 couples and it's something that you could expect an couples are happier when women come down faster after an argument. should the government be spending money on this? it is just outrageous. neil: what about when demand

calms down? >> apparently the woman is more important. >> okay. that is what i hear. and a price to go to the caribbean, that is an ongoing one. and they keep doing it. >> yes, they do. there was something we couldn't figure out. so many were involved and you could imagine that it was rather expensive. >> that is amazing. i am sure that you could go on and on. thank you so much. >> thank you. neil: 50 years to the day, a war on poverty. when will someone have the guts to put their wallet down? who are we? we are thinkers. the job jugglers. the up all-nhts. and the ones who turn ideas into action. we've made our passions our life's work.

we strive for the moments where we can, "i did it!" ♪ we are entrepreneurs who stted it all... with a signature. legalzoom has helped start over 1 million businesses, turning dreamers into business owners. and we're here to help start yours. [ male announcer ] wt kind of energy is so abundant, it can help provide the power for all th natural gas. ♪ more than ever before, america's electricity is generated by it. exnmobil uses advanced visualization and drilling technologies to produce natural gas... powering our lives... while reducing emissions by up to 60%. energy lives here ♪

>> this administration today here and now declares unconditional war on poverty. the richest nation on earth. our aim is not only to lead poverty, but to hear it. neil: 50 years ago this very night lyndon johnson embarking upon his great war on poverty and it all came with a great price tagged as well. and yet the poverty rate is just as high. the percentage of african americans unemployed is even higher. 47 million on food stamps and tens of millions more on a lot more. mike connor says no more.

and it is amazing. and i always think that he was part of this and he left that behind him to get these requests through. but to what end? good intentions are always fine. but it can always be on ending with the but behind them. >> certainly. it is not just money but lost lives for those who have been trapped in poverty. the war on poverty has gone on longer than vietnam and iraq were combined and we have spent him $16 trillion over the last 50 years fighting poverty. the net result is that poverty is almost as high as when it started. it's a waste of money and those people today. neil: i would mention that they don't break down a lot of statistics in this way.

whatever improvement that we see in the poverty rate, it does a lot less to government programs as it does with the overall private system and the jobs generated through companies and the like. this is a lot of money to pay for whatever nominal improvement you argue about. >> what you say is true. we can see before the war on poverty began, it was coming down rapidly from about 1945 until about 1965. it rapidly declined and whites and blacks, children, it was coming down steadily and it leveled out around 1970 and has basically stayed unchanged since then. neil: as we look at the latest abuses that have been found on the part of police and firefighter retirees, lies and

bogus claims and health risks and etc. we do not look into this closely enough or whether we are pouring good money into it because it always looks bad or we always look callous. when we are actually spending trillions to live here and we ng for the buck. >> that's right. 15 trillion is almost as much as our national debt. that being said we waste money on corporate welfare and welfare for the elderly. but where we are really failing is those people we are not lifting out of poverty. how can we still have people struggling to try to make ends meet and to make this as how they can achieve this in society.

we are trapping them below the poverty level in a way that they cannot rise and that is just cruel. >> yes, and the answer about how we need more money -- we don't even bother to look back at history and look at the money that was already spent. michael, it is such a pleasure to have you. >> thank you and anytime. >> does anyone know who? talking about this. could they be that hard to find a replacement? really makes my life easier. maybe a promotion is in order. good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate.

simple, flat rate shipping withhe reliability of fedex. 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.

neil: it is time for our business blitz and we are all about jesus. microsoft, going on with lolita. oh my goodness. let's see which one you will buy.

and what is going on at microsoft? does anyone want to be the big cheese there? and microsoft can stick that on a cracker, which brings us back to microsoft. what is going on here? >> well, this is a job that nobody seems to want and it's kind of like the washington redskins in the nfl. and i will tell you why that is. they have a tough owner daniel snyder. they have steve ballmer and bill gates and by the way they just spent about $7 billion on a feeling phone company called nokia. that is the ceo that could step in. i think he is in the drivers seat. neil: there might be something to what scott says. any personality will say, i have

the freedom to do what i think needs to be done and those guys are staring over your shoulder anything okay. >> they are. the both of them came from inside. obviously we know where bill gates came from. i think scott is wrong on this one. i don't think it's a good choice at all. i think it was a failed entity and i think that microsoft, i think that they go back to the inside and i think tony bates is the guy spent time at cisco and skype and he will be the next one. and he was an aerospace guide and a marketing guru. neil: by the way, if it drags on, doesn't that hurt the stock? >> i don't really think that this can be hurt anymore than this already is. the market is buying into hopes for the microsoft stock. so i think that they will find someone soon. but i don't think that they have

any more downside while they find the right ceo. then the market will react negatively. neil: warning about a velveeta shortage which means cheese lovers every well or will be watching the nfl playoffs. i don't know what it is, but has a substance that is alien to most cheeses that i know and i know that most are just cheesed off regardless. >> is rubbery and bubbly and yeah, i can't believe it either. but according to the statistics come i guess the velveeta sales are up 20% or so of the double digits. >> i was fighting with a woman last night in a grocery store trying to get the last thing. >> we had this problem before.

remember last year the hostess strike that we thought we would never see again? >> the sales spiked for three weeks and now you can't sell any of them. i think it is just a hoax. neil: you are not buying it. you say that it's a little story that may be the velveeta folks sort of tease duets and said i better get some? >> yes, i agree with scott. i think this is a marketing gimmick. nlb days 86 years old. it takes a little more time to maybe get that out of market. but it's a little bit of a gimmick. i do love velveeta even though i prefer cheez whiz we want the same kind of compound. so were you watching tomorrow besides the velveeta stock?

>> many were added for december, we have jobless claims tomorrow and i'm interested to see how that goes, considering that we've had a full day to digest the employment report which was better than expected and with markets languishing to start the year and also abroad. we will see this full trading day bounce back. >> what do you think? >> we talked about this last month. laying off about 45,000 workers and i want to see just exactly who those workers are. are we seeing the higher price and rehiring of cheap labor? if that is the case it may not be contributing to the economy. >> gentlemen, you're both kind of talk about the markets and i'm curious about this. a lot of people come up and say that that is hard and then statistically it is hard and not unprecedented. so how do you advise clients

when they say they want to protect other games but they don't want to go too much out on the limb. >> it is taught. witty protect your game, a lot of times they are called non-correlator's. but if you look at those industries and commodities, the bombs are way overvalued and and commodities have been smoke and you don't really have a choice but to go into equities and that is a dangerous game. they think that's where a lot of money flows. price will go up to a certain point as the money flows. >> are you optimistic? >> i am. just not as much as last year. i think what you have to remember as a consumer is that you probably had a really good year last year but don't get overly confident. stick with it and those dividend stocks. neil: okay, thank you. >> the results are in and we are jubilant. and we are delighted.

a new gallup poll shows a record that a record number of americans shows themselves to be independents and it's no wonder. with both parties so far behind public opinion, issues like same-sex marriage and legalizing marijuana, most people have chosen to go at it alone. you are not alone. we are just like you. we are the "the independents" ♪ ♪