welcome, everybody. i am neil cavuto. you wonder why i make such a the big stink to give more politicians more infrastructure money. struggling michigan homeowners find out money for them might go to the unions they want does slice of the federal aid package to help all lenders and redirect the funds to help bail out there own very sorry and gas -- and cash strapped city now 3-1/2 billion dollars in tel whole and 100 million would be a

big help. so if you're struggling to stay in your house you will start screening for help because if rich is right to a good piece -- judge done deal. >> this was established by the administration looking to be redirected federal lead to detroit to spend on housing to ease some of the cutbacks they are doing. they have gone baker trying to get themselves afloat. neil: it was meant to help of homeowners that was the goal. >> what it does ininstead of spending states and local money federal government ptah - is as we use that in every seven additional 100 million to spend it on pension relief. neil: how likely is this it?

>> of white house is not commenting yet. it is not a done deal yet to the administration is trying to find a way to help detroit. has been said there will be no lifetime but the federal government is responsible in the administration is responsible to different parts of the country. neil: this is what makes people cynical when it finds a the myriad of other uses. >> this could be a case for earmarks' why some say you did away with earmarks but the earmarks says it could be to know where biotin it is spelled out way you do general funding you use this for these types of projects

said the administration decides what you use that for. >> great to see you. >> this is invented for one thing my next guest seems to think so former ceo what do you make of what he was just reporting? fisker be all perfectly the gulf. >> it might be legal but it moves the irrigation for irresponsible behavior to the state level to the federal the fall. depending on where the obligation those and then never correcting the bad behavior in the first place with three and a half million dollars just of tension there was what to behavior by the unions to get into that condition and it is never held accountable

neil: even if they get that it is only the next couple of years. but they would have to revisit doing something like this then there are ample opportunities to do so. >> of course the public is cynical. this is to be expected. i am not an all surprised. the problem is with unionization in union supports the election and reelection when it is elected they turn around then it is giveback time. the unions in detroit is one of the reasons why we have the situation rehabed today. the fact we do anything to bail them out particular the when taking money from the home owners that were supposed to be supported.

neil: maybe with these distress homeowners with my rocky pension? >> that is the dilemma with so much obligation why fdr did not 1 inch employee unions when you get a deal you get multiple layers of obligation and it winds up creating a i dash four the person at the other end or the homeowner in distress because somebody tries to get at the money that basically winds up to be capricious decision of the democrat. neil: when it they say we need more money for roads and bridges i said i will give it to you if you can account for the billions to have already gotten with the war on poverty the question of spending more so you must be for poverty to maake sure

americans to go to bet hungry question spending trillions more to make sure they don't go to bet because they fear of the compound the problem just throwing money at the problem. >> of course. as you know, if you think about this in the private sector tensions are going away. the fact is calling we have to support with our tax dollars the tensions that have then built up by unions over time. it makes no sense. look at bankruptcy in the private sector and of course, we just came through said eastman kodak bankruptcy look at the pensions of the people at kodak they are the fraction of the size that they used to be. the fact that we do this for detroit is not right. neil: this is a flagrant

moved. we will watch it. remember that a colorado couple from yesterday about to lose their home? all lots of you got fed up why the government gets what it wants the matter how much you lawyer rob. ♪ [ cellphones beeping ] ♪ [ cellphone rings ] hello? [ male announcer ] over 12,000 financial advisors. good, good. good over $700 billion dollars in assets under care. t me just put this away. [ male announcer ] how did edward jones get so big? could you teach kids that trick? [ male announcer ] by not acting that way. ok, st quarter... [ male announcer ] it's howdward jones makes sense of investing. ♪

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to. neil: and the taxman is peaking considering taxing the goodies you get network the complementary gym membership for the free lunch. if you get if they wanted. tweet about it and @teamcavuto will read them at the end of the show. and uncle sam may be getting too aggressive. one couple lost their home because of the government it has gone viral. right now if this is not addressed you lose everything. what you do? >> they spent us to death. we cannot continue the expenditure on the

attorneys' fees to fight the government. >> is a done deal. the of the land is gone. neil: they cannot afford to keep fighting on top of the seizure of the cattle ranch the last week it is making my guest a little upset. >> take everything you have the next day the government misunderstood the words of the song of this land is your lenient. -- land. start with the fifth amendment the bill of rights speaks it cannot take your land not because the government feels like it or it can better under limited to the circumstances but built on the notion in this land is my land.

>> but this land is protected. even though we have ofroad and the means by which you can access your cabin you cannot take any motorized vehicles that would result in no one now were walk so they gave up stick you talk about a few different things to put aside right and wrong to spend a someone to do death. neil: that is the excuse. the couple was getting obstinate so this will be the means that we kick you out. >> if we cannot do what the right way or by their rules we will make up another reason so will i am out spending or threaten you particularly if the law is not on our side. neil: is this eminent domain or worse?

because in this case it was not about grazing fees or any of that but they were good on their bills paying for whenever they got but it was the access road that was already there that countless others had used even government vehicles but the fact they would use it to get to their home was the excuse to not let them have it. >> that is the excuse for innovation and not rely on excuses. not to make the rules then you have to follow the rules said why should the citizens played by the rules? the government should follow the law. >> why did the government changed of rules? i know there are grazing fees but they brought up all

of a sudden this out of the blue that the tortoise maybe that was in danger all i know the cattle and the tortoise got along just fine but that was the reason to say get out. >> what it comes down to it comes down to do public use not because i feel like it or want a better view but it has to be for public use. neil: what does that mean? i industry and when a developer comes and at some for guy's house hopefully he is compensated but it is all part of a greater social good. quibble with it is. >> when you think of public use in the old days if you

needed to take the land to build the railroad fed is public use public safety is another reason why the government can justify we will pay you just compensation but it cannot be because we like the view or no reason at all because you defaults back to use. neil: but in new jersey if you buy a property that has some latent on its is property but there are strict rules about building and they figure a new plant to protect the salamander. is that right? that is built into people's expectation they cannot do anything even though they pay for it spirit that is a different example you left out one part that there is rules in place sometimes it says you cannot cut down

trees you have to leave a certain amount. that is spelled out. neil: what is spelled out with the a couple? >> that is the duty it is like disappearing ink it is not there in tel i feel like it's know i will put it there that i billy ray says and does not bear any more. is cool to be the government neil: thank you very much. when a the president are the premiums would skyrocket e called every insurance commissioner he knew he is meeting with every major insurance honcho today and one of them is here. if you've got copd like me... ...hey breathing's hard. know the feeling? copd includes emphysema and chronic bronchitis.

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neil: apparently sebelius is out the door than the president meets with top commissioners to find out why insurance premiums could skyrocket. one of them joins me right now. former senator from nebraska ceo of the national association of insurance commissioners. >> it was a very informative and constructive meeting. the president said the directors and supervisors are more important to the process than ever and it is important to have a partnership between the commissioners and the federal government hhs and all the alphabet agencies.

neil: was the concerns that companies are saying that premiums will skyrocket even more and he wanted to know? to recover betty is concerned about reports and he did want more information about what they were hearing to make sure the of partnership has been developed we continue to follow the departure of secretary sebelius so there is the ongoing relationship. she is a former insurance commissioner and worked very closely with the states. neil: was anybody in the white house surprised even you said not in this many words you can get something for nothing to require them to get the added coverage they will naturally charge more but is set the degree of the increase? >> the president said the

degree of the increase but his statistic was they were expecting 8% and it was 4% if there was any surprise with his party could have been lower spending some said it was double digit increases spinach he said we all have to be concerned fair treatment to the policyholder and commissioners have to be concerned about solvency. you cannot have been adequate rates. but to be concerned about rates so there is no gouging or any kind of effort to get more than should be. that is the of message for fair access with affordable insurance. neil: when he rolls back the

mandate is one thing to go hand-in-hand but a l of the members have to go with the or regional parameters if he keeps changing then the arguments has been your hands are tied. did he say to be more flexible? >> he said the more flexible to be open to any suggestions on rates or any other aspect of the application. >> they said they are concerned but also solvency. so it would drive away the market see you have to have a balance between the attic which reached an the solvency of the insurance industry with the available market.

as we try to take care of people back hme. neil: it seems like a nightmare. do you regret the vote? >> the same answer as before. there is no dew over. that is the rollout. the president said it did not rolloutre trying even those that disagree states for it or against it. neil: but is it better now than what is a bore is is an aggregate? >> you have to the gatt different milestones there is another one coming for the sign up. the commissioners to were totally opposed to the goveors were opposed but those are doing the best job they can at home that was

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request show that lous lerner was in contact with the department of justice and high players and department of justice at that about the prosecution of tax-exempt groups to they said may have lied on their forms when applying for tax-exempt status. she then sent this e-mail to the former chief of staff of the former irs commissioner, once again, a low-level employee in cincinnati, asking her how the irs could help. that woman wrote back and said that she thought that they should help. this shows not only that the just about now was involved, but also that there were very high level people in both the irs and the department of justice outside of lous lerner involved. neil: even as she was about to apologize. you know, notwithstanding, this was ancient history. >> exactly. neil: congressman, you are saying that is another reason to stop paying her.

>> listen, this is not some banana republic where you get thrown in jail for disagreeing with the oligarchy. this is the united states of america. unfortunately, i don't believe for one second eric holder will go after for the content that i suspect will be voted against her in congress and a couple weeks. we have to have some way of getting at people who are in contempt of congress and withholding there paychecks is one way to do it. neil: be careful what you wish for, though, congressman. if the roles were reversed and it was a democratic congress that had problems with the republican administration official answering to a republican cabinet agency in their investigation, held in said contempt, would you endorse having their pay knocked as well ? >> i would. what is right is right. you need to cooperate with congress. you have coequal branches of government. congress is basically dependent on the justice department or the courts to go through with

contempt. neil: you know, katie, i'm wondering if these e-mails now sort of get us past the process of whether she will ever testified. the e-mails are screaming that she could be in trouble already. >> i think she is in big trouble up until this point outside of offering immunity the goal has been to get the facts based on these e-mails which has been difficult to do. this is a year after and we are just now seeing easing mills come forward. it goes to the question of lous lerner was not the only one involved, especially when it comes to the department of justice, the department of justice is supposed to be investigating will win on. now senator ted crews is calling for a special prosecutor because clearly there's a conflict of interest. i should point out quickly that lous lerner also admitted in another set of the mails that were released with dispatch that she confirmed that there were any liberal groups and the other side of the aisle that were targeted. these criminal prosecutions were only going to come down on

conservative tea party groups. neil: we were trying to look for these groups targeted. not one could be found. congressman, you are just saying there is enough here to at least with holder pay. >> unfortunately lous lerner has resigned. you have to go after retirement. eric holder is the one whose pay we could cut off. if there was something put in the appropriations bills coming through this summer. neil: we will watch it closely. i wanted thank you. meanwhile, did any of you remember this viral video? it was meant to get washington to stop dancing around the debt issue. next, the guy behind this add on

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all the better deficit numbers it wants. we still owe, and he and young people in general are still angry that they will get stuck with the bill. he is so serious and furious about this issue that he is running for congress as an independent in pennsylvania to prove his case. he is 24 now. you will be 25 if he makes it. just make the cut for the minimum age you have to be. you are doing so as an independent, not a democrat or republican. >> our country faces a series of large sustainability challenges. we are not able to address them. a lot of that has to do without partisan and polarized politics have gotten and the influence of special interests have. i think running as an independent candidate and not excepting contributions would position need to be a good representative of the people of the tenth district. neil: you have to get a lot of signatures. >> that's right. a great team of volunteers out

collecting 30500 signatures we will need. give people a third choice besides just the democrats and republicans. neil: would you be included in the debates or anything like that? >> it is tough, but i think it's worth it because we need to shake up the political system. it does not seem to be working for us right now. neil: when you were doing these ads to come up with it how did you did alan simpson to do it? they look ridiculous. surf they did it. it does catch your attention. were they drawn? did you get them at a weak moment? did you have photographs of them ? >> these great national leaders that we were able to work with understood the importance of trying to reach all americans on this important issue of our national debt. neil: they are fantastic. how have young people responded? >> well, i think young people realize that we have an $18 trillion tab right now headed our way.

neil: today? >> but the problem is you have many people, noot just young people that don't see that either political party is offering real solutions. republicans are not willing to engage with democrats on the revenue side. democrats and not willing to engage with republicans on reforms to our social insurance program. we have been stuck in gridlock when we really need proposals like this and symbols commission before it. neil: so you would be open to the entitlement reform, even if it meant someone in your generation not getting as much out of medicare or social security? >> what is clear is the longer we wait to make certain decisions the more painful is going to be and the more of the burden that future generations will have to bear. we need to restrain spending and our major entitlement programs while protecting those in and near retirement, raise more revenue through forming our tax cut which galore rights for all americans and we need to make real investments in our economy

so we can be competitive in the 21st century. neil: what did you think of the irs now reportedly looking at taxing perks that people get and work? >> well, our tax code, there is a disproportionate amount of loopholes that benefit the well-off and well-connected which ought to be closed, and that is h we ought to raise additional revenue. neil: on top of hiking the rates you would stick to them? >> i think that the current congress has done the exact opposite of what we need to do, including my congressman. they have slashed investments in the future, raise more revenue by hacking tax rates instead of reforming the tax cut and have not meaningfully addressed any of the major in town of programs. neil: how would you do that as an independent? you would be, you know, a pretty big minority. i'm wondering how you -- to you side with for voting purposes? would it be the republicans? >> my interest really is in being the first step toward a more meaningful and broader political reform.

change can't happen overnight, but if i can be one voice for people who don't feel well represented by other parties, that sort in 2014. in 2016 when not have a dozen or two dozen independents running inviable districts across the country so that the caucus of the sensible center can actually denied both parties. neil: when polls in your area, the idea of an unnamed independent candidate trounce the incumbent. the question is whether when they look at a young guy like you, a great guy, a good heart and all these things, just too young. what do you say? >> if you look at our current congress is one of the ldest and long deserving we have ever had in our history and is one of the most dysfunctional. if there ever was a time for new ideas and a new approach i think it's now. neil: all right. what do you think a president obama? >> he has disappointed me on the budget issue. his 2015 budget is a plan for the 2014 election, not a plan for the country or the next

decade. neil: what about the speaker? >> all of our congressional leaders need be able to work to solve problems that are going to make the next generation better off instead of just seeking what is best for their next election. neil: you don't like either? >> i think it's time we had some leaders that were more concerned for the people and their parties or politics. i'm not seeing that for many of our leaders right now. neil: i admire you. it takes a lot of gumption to just throw line for congress. we will see what happens. thank you very much. in the meantime, at first i thought so hold taco bell at it with the ronald mcdonald was cute. turns out it was a rip-off and the rip-off was a ripoff of another rip-off which ripped off still another rip-off. let's just say, we've representative. you will see. ♪ ñíw@?

neil: in tonight's business blitz companies ripping off products, but now they're trying to sell those products. take a look in a new ad for a starbucks subsidiary. >> and duncan, and i love seattle press. >> hi. i'm back in, to. >> i'm also not in. >> and duncan. neil: all right. i think i've heard it before. using guys to get one over. thinking to myself, i've heard this before. take a look at this ad by taco bell. >> i'm ronald mcdonald jr., and this is ronald mcdonald the third. >> my name is ronald mcdonald. >> i'm on macdonald. >> ronald mcdonald. >> i'm not macdonald, and i love taco bell's new breakfast.

>> you're asking the same question. he came up with this? it turns out neither. here is a natural jack in the box from 2000 to. >> i'm jack. >> i'm ronald mcdonald. >> what do you think? >> delicious. >> told you. my burgers are so good even ronald mcdonald likes them. neil: okay. that one was pretty stupid. the ripping off and pay off. what you think? neil: don't get me started. >> the sincere form of flattery. such a brilliant marketing idea. you have done it. is it really so clever. there are risking looking like corporate behemoths as. it is looking like these are not coal companies fighting over marketing gimmicks.

the look of the plays that opened, but that said, you know, i just don't see what the hysteria is. the phone technology, they need to own. neil: you called it hysteria. i did not. don't put words in my mouth. >> well -- neil: what do you think? >> if there is nothing new under the sun or the golden arches or the burger king crown it is all kind of derivative. maybe the one thing that is interesting is in the new media landscape with these guys can put it up really fast to this idea of the giant or between coca-cola and pepsi, these guys can make these things faster, but the much faster. in my opinion that's the new level of transparency in dialogue. they can be more fun and playful and interesting than advertising used to be. neil: playful, dark. something like this.

my co-workers do it all the time. for example, take this show, "cavuto". i want you to look at all these other shows. o'reilly factor, heavy, stossel. can it be any more obvious? a lot of people sy o'reilly had his show before we give you to show in 2007. oh, contrary. twenty-five years ago today i introduced my last name first way before the o'reilly factor. take a look. >> good morning and welcome to cnbc, the consumer news and business channel. i'm neil cavuto. neil: puberty kayten. can you go too far with this stuff? what do you think? >> i think the guest makes a good point. one thing to think about, where he's at stake on a life of their own is scial media.

the bottom line is, the more like they get, that is where the bias occurs. here is the problem. if these ads are to patchy the consumer may change their buying habits. try the produc but if they don't like it, if the product or service is not match the excitement it can actually backfire on the company. so wade into this water carefully. have your product and service ready, but make sure it matches the quality of the ad. as the key to success. neil: starbucks generated all of this. that is the subject here. starbucks is paying more taxes all in the name of good pr. they have to find the critics said that the coffee giant was not coughing up enough to know in the netherlands. it decided to move its european headquarters to london and is paying a much higher rate. look at this. maybe just to get them to shut up.

>> i definitely think it is to stop the pressure. the executives who will get relocated will be passed off because everything is legal. i will say -- neil: your incredible. i can't believe he threw that in there. >> is not starbucks fault that the corporate tax rate is very favorable. that makes sense. it is a law that you could do that. neil: they just -- they're going to book some profits. from sales in the uk. right now they don't pay losses there. they're going to compromise. it is from pressure. ultimately it will reflect ire price. i don't see why the consumer is an. you are going to pay a lot of taxes so we can pay more for the coffee. neil: how can you possibly pay more? >> especially in london. neil: what do you make of it? >> well, i mean, the beauty of capitalism is people do what is in their own best interest.

starbucks is making a clear call that says while they're is a risk and an interest that we have here, if our audience, if our consumers think we are tax shirkers maybe it will do this and make that happen. arguably the customer base is not joe lunch bucket who feels oppressed by taxes. it tends to be the launch site, you know, the limousine lot a super. those people, i think, they probably rightly are reading, more likely to be ticked off. these guys are not paying enough taxes. they do what is in their own best interest. neil: no, i think you're on to something. the nuisance factor, but it's well worth it. make a lot more money in the long run and keep the call out there. >> i love these one-liners. what i don't like about this is,

first of all, there is a possible breakage of trust and concern by the consumer. this can lead into the haves and have-nots. when people viewed the corporation's, hold separate rule but the whole average hardworking american, that can break the economic cycle. again, small example but it could have a big results. starbucks is smart to get in front of this. companies that take a lesson from this, pay your fair share, but hard-working americans want to make sure they get some of the same breaks. neil: a wanted thank you all. in the meantime, i don't know when i started here, but ever since i admitted to not being cool suddenly i'm getting flooded with e-mails and tweets saying, oh, no. i am per cool. now today's what's the deal, really cool. ♪ [ chilen yelling ]

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neil: what a pain. the irs wants to tax our perks they are crated to find new ways to get money. when tweet is the government finds a way to take more money to not give them ideas. ronald reagan summed it up if it moves tax city keeps moving regulate its. on the timing just as we hear about bonuses going out to irs workers worth $65 million. the people that get the free stuff now have to be given a raise by the government to pay their taxes? will put. didn't you hear? nothing is free the irs will

tax the penney's senior golfers nothing gets on your nerves more than emails repaying their favorite star even as he admits he is not cool and will never be cool this is the kind of e-mail that sets you off with my bare my soul to the world. >> that some of fox alert you are not cool? talk about stating thought obvious marshmallow man. neil: that is the best? >> news flash you are ugly also. >> not a warrior princess just because you had success gb a loser does not mean you get beat up because you admitted it. neil: what? to make you are very cool to say you are not cool that

you are not conforming that makes you hip. your very indifference makes you hot in this college junior costs on new money man. >> you are so cool. neil: to share. >> you are not cool but good but then obama is cool so what does that tell you? neil: i have no idea. not good? >> thank god for you mr. cavuto. civic thank god you are a skulk and fox. neil: you just added dusk don't. >> you are the cutest i love your show. >> and i cannot believe the

total lack of class then you put them on the air. don't give the police any of your golden time. >> no more o'brien the eve mailers. [laughter] >> stop picking on me remember that camera ads 25 pounds. >> actually it is 50 pounds. neil: but=9]y look at this. >> are there doughnuts or are they all gone? are there any brain cells left in your head? where do people come from? >> while i listen to you yabber i am tweeting. >> i like your do class's it looks like you were not wearing any stem a guy like fox mr. cavuto is so classy but it comes to debating. >> i own three yachts.

how many do you got? >> here in the u.s. or in anywhere? just acts -- asking. . >> happy earth day. >> happy earth day. >> earth day is next week, it's time to get hysterical about global warming. and overwhelming science. overwhelming? >> this is a huge, huge, planetary crisis. >> what should we do about it? >> um, i'm not sure. >> it can be as simple as riding the bus or subway to work. >> well, do i that. or this. >> i'm such a good citizen. going to save the earth. >> we need to get a sense of priority. how much wealth are we going to forego creating in order to have zero