best of luck to both of you. that is soul cycle cofounders. the market is holding onto games. twenty-six points higher. i will see you tomorrow. it is time for "varney & company." stuart, over to you. stuart: good morning, everybody. talk about a tax revenue bonanza. despite a weak economy, the treasury is breaking it in. taxpayers deserve a thank you, but they probably will not get it. taxpayers, how do you feel about this? why does at&t want to spend 50 billion buying directv? texas is trying another grab for california jobs. californians do not like the smell of this. texas says come on over here. steve cohen 198 million.

he cannot find a buyer. "varney & company" is about to begin. ♪ stuart: we have some big names stocks. we follow it for you all the time. look at this, please. at&t reportedly in talks to buy a tnt. there are some skeptics around on this deal. it is a lot of money. direct tv is no longer a tech leader. big beat for the cloud computing company. they take your stuff and they store it up there. the stock is up nearly 10%. twitter coming off of a decent game. it has become our proxy of sorts. now, it has a mute button.

mute people you are following without them knowing. we wonder what dr. keith ablow with say. he is not keen on the twitters of this world and now they have a mute button. now look at green mountain. coca-cola increasing its stake in the company. charles is with me. now, coke. they must like green mountain. >> they think they can say it and it happens.

they have these gigantic orchestrated campaigns to deliberately hurt these companies. that is what pleases me off about them. i am rooting for the shareholders of green mountain in this. coca-cola has to do something. now it is that whole thing that is relates falling off eight cliff. stuart: i see those coffeemakers everywhere. they are not all winners this morning. come on in and tells about elizabeth arden. >> the red door salon and spa. the stock is down 15%. still, obviously, they have come

out with north american sale numbers that aren't dismal. they have hired goldman sachs now to look at some strategic options. it seems like some of an uphill battle. stuart: all right. thank you. we have a researcher at goldman sachs. he says obamacare is good for obamacare. beating obamacare. you want to take this on?

>> if government provides food stamps, unemployment benefits, welfare benefits, it will put money in people's pockets and they will spend it. companies are sitting on their cash rather than expanding because they do not want to hire >> you shut down the goldman sachs thing. okay. got that. the law says that employers with 50 or more full-time workers have to provide this costly set of obamacare benefits or pay a penalty. employers have shied away from adding to their workforce. literally, and anticipation of it. 77% of new hires were part-time.

stuart: that is bad for the economy. is it the robert wood, johnson foundation? they used to be gung ho for obamacare. it is a key part of this law. once it is repealed, if it is repealed, of course this lawful no longer be paid for. charles: less than 1% of people will lose their insurance. >> that is incorrect, however. they say this whole thing is really hitting the poorest workers hardest. it is killing people. stuart: if you have this organization which used to being the call for obamacare, that is a huge turnaround.

>> a huge turnaround. if they remove more of the controversial portions, less and less of it is paid for. stuart: in virginia, they are posting the premium prices. anthem, their average premium increase is a .5%. >> pretty hefty, but much lower than it would be. section 1342 of this law says in 2014, 25th team and 2016, insurers can actually price their plans lower than the price they would be to cover their costs and the government will come around to the back door and hand them taxpayer money they

are calculating now what they owe them. the really big hikes will occur once the premium bailout is over. stuart: you are on this program very frequently. we will save that one. it is a pretty good idea. thank you very much, indeed. congress is considering a deal that would prevent lawmakers from flying first class on taxpayers dime. right now, they are allowed to do it. charles is still here. i have to tell you, i am not

particularly outraged. charles: i am. trying to tell us how much we can earn, how much we can spend. absolutely. listen, if you are going to teach something, live by the same rules. charles rangel was in the same car. there was something bothersome about that. we pay for that ticket. >> the irs has spent $100 million on office furniture in the last four years. $100 million. i am not happy about that. charles: i guess because we are dealing with billions of dollars and trillions of dollars that millions do not matter anymore. eight years.

now it is the mentality. they do not give a damn. stuart: by the way, betsy is still with us. >> they want to raise the budget this year. stuart: they want to get another $1.2 billion to run the irs from the taxpayer. they want the extra money to run and police obamacare. >> i say let's appeal it. [laughter] stuart: time is money. thirty seconds. see what else we've got.

it cost the taxpayer a $.5 billion. next one, billionaire hedge fund manager steve cohen cannot find a buyer for his new york city apartment. 9000 square feet. four bedrooms. been on the market for a year. question, would a buyer have a problem with the links to the investigations? the death of the shopping mall. jcpenney and sears close. some are closing. at&t things direct tv is worth 50 billion. time to finally cut back that cable cord. the dow is up 16. ♪

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stuart: we really were hoping to use that shiny new dow graphic. we are up 20 points. just shy of $1300 an ounce. the price of oil right around $100. we have to downgrade. the stock is down 3%. mcdonald's is hitting a high. it got an upgrade. 102. a nice move recently. there is the graphic. if you want to know about a stock, you use the hash tag asked pain.

charles: industrial chemical manufacturing. they specialize in gases. [laughter] charles: lots of hot air. they have some amazing drivers. hopefully we will need more than that. a big driver for at least until 2020. they get to sell and clean it up. you know what, after seeing the devastation of so many of these highs, it is good to have a few of these things in your

portfolio. stuart: this is a big merger. everyone is talking about it this morning. the price tag of $50 billion. direct tv up only a fraction. at&t is down over 1%. jerry kaplan is with us. what is at&t going to get if it buys directv 450 billion? >> i am thinking they are thinking they will get money. >> they have a lot of subscribers. at&t has a lot of services that they offer. what they do not do a lot of right now is television. however, that whole triple play

think is when all of these cable companies keep trying to sell to you. stuart: this this and this if you buy it all as a package. what do you make of this? i was listening this morning and a commentator was saying directv is no longer a leader. it was back in the day, but it is not now. the cable companies have overtaken them with the cloud -based dvr service. >> the cable companies are struggling right now. they do not want to keep paying these bills. they are doing a great job. we are unhappy about this.

>> they do not like that the tv repair man, the cable guy, they are not popular. one thing they can do is start selling their services. i hate it. you hated. we all hate it. we can't do anything about it. charles: they have to do something.

stuart: this is important. there is a company. a new drone. a drone geared toward consumers. >> to some extent. not very much. they are smart enough. you program them to fly. it is very, very neat.

>> you always come back to me. why would i want this? you can operate this with risk. a virtual reality headset.

stuart: sendoff the parent. i am like flying over the neighborhood looking down. according to you, the viewers, you think charles payne -- you do. look at that. another graphic for you, charles. back in a moment. we will explain. ♪

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americans for tax reform president grover norquist. release surprising tax divide between states run by republican governors and states run by republican governors. we were surprised to see so many of you were not keen on what grover had to say. listen to this from steve. the problem is these things are emotional, not rational. what will happen if the blue states blamed the capitalist corporations be leaving and not paying their fair share? that will happen. rebecca asks don't tell me you are remotely surprised about this. i wouldn't say i was that surprised by what i heard but when i hear blue states raise taxes as much as $57 billion in three years and republican state of drop taxes $36 billion in the same three years it is hard to not be a little taken aback by those extreme numbers. thank you for your comments. continue to let us know what you

think. facebook may open net sales office in china. stock is up, there it is, 60 as of right now. europe's top court says google must respect people's right to be forgotten. that refers to the removal of irrelevant or excessive personal information from search engine results. google is up $2 on a $540 stock. we joke on this program about charles taking over the show for me when i retire. but some of you think charles is destined for much greater things. listen to this. >> i think charles payne of fox business, talking about him, is terrific. don't know if you have ever seen him. he is really charismatic. he is charming and so smart and has a great story and if mitt romney had only picked him it would have been much more. stuart: so smart and handsome too. any response to that?

charles: thanks, mom. stuart: that was on the michael medved that radio show. stuart: for it is good. one thing i do appreciate is when people stop me in the street not because they seen on tv but appreciate what i try to stand for and the message and i appreciate that. stuart: would you consider public office? charles: i really -- i have -- i am only just now in the last few years becoming the man my mother raised. i would have done a much better job than president obama. i would not set would have been president obama. mitt romney could have been him after the first debate, he went into defense mode and i think he dropped the ball and i would be a better president. stuart: well done, young man. wall street got its bailout, yes it did. very contentious bailout and the

executives got big bonuses. find out what tim geithner is saying and what president obama had to say about it. the judge is next. what is he going to say? that is after is this. .

stuart: is not much of the game but enough to put the dow a record territory, 16,718. and moments ago came back again. it was above $1,900 for brief shining moment. there charles is going to make some money by flogging a dead horse. you are backed up. charles: i feel like something of a slacker because i have gone to this quite a few times. it went to 16 to pull back 14 and miss the earnings by at any. people who hadn't had a chance to get into it is now chance.

it goes well more of 20, second-tier firm, tied at 27, they make the hearts and glasses like three times stronger than gorilla glass, sensitive to the touch, apple doing big things with them. i would like to see someone else make some moves towards them, maybe to take them over. stuart: if apple can buy beets -- charles: they put that money to work. the $100 billion loan and all that kind of thing is ridiculous. it is a different company, sitting on a pile of cash. stuart: if you bring it back to pay 35%. if i was an apple shareholder i would sue them. stuart: if you take a month to pay dividends you also take a loan to buy something. stuart: that is right, mr. president. you are surely right yet again. more fallout from the tim geithner memoir which recalls an interaction with president obama in 2009 when he was asked to

express outrage of a banker bonus in the middle of the bailout. get out there and express some outrage. that is what they wanted to indict her to do but he stayed silent because he didn't object to those bonuses. instead, i sat uncomfortably next to the president while he expressed outrage. americans were furious about bailout for overpaid bankers and the white house political team wanted us to show we were on the right side of the backlash but timothy geithner wouldn't express outrage. will judge andrew napolitano who just happens to be with us? are you outraged, contractually obligated bonus payments to bankers? judge napolitano: you know a little bit of subtlety here, mr. london school of economics. the subtlety is this. if chase manhattan bank is obliged to play a bonus to jamie dimon, picking the president's ceo, i don't care what they do. there's a contract and the contract should be enforced but if they're going to the federal

government had in hand saying we need taxpayer dollars with which to pay this bonus and other expenses i am profoundly against it because the constitution doesn't authorize taxpayer dollars to go there. stuart: supposing they were paid out of trading profits which those bankers had indeed made? judge napolitano: then the contract should be enforced and tim weiner was correct to remain silent though he is probably disingenuous to refer to them as overpaid because now that he is in the private sector he dearly loves to be among them. stuart: a lot of 6-figure speeches. so you are not offended and outraged by bonuses if those bonuses were paid out of profitable enterprises within the bank but it's paid out of taxpayer money bailout money, you are outraged. judge napolitano: i suspect you agree with the embassy attack on the bailout money and call its -- how many times have we been through is this?

stuart: it never gets stale. i hope the viewers fix up. a couple more for you. what about this one? there is a new bill before congress that would stop congressman from flying first-class, they are allowed to do it right now. are you outraged if you see your senator fly first class or congressman fly first class on the taxpayer dime? i am not. judge napolitano: i have sat in first class next to nancy pelosi and walked past a small people back into economy chuck schumer and he looked at nancy pelosi and said i am a man of the people. it is ridiculous if it is more comfortable and more convenient. stuart: you are prepared to pay for that. judge napolitano: as long as it is a legitimate business trip. i didn't ask her. let's not talk politics. i don't know what she was coming

to new york for but i saw her security and assume. stuart: i am shocked. judge napolitano: never to be invited to this show today. charles: everything they do they take money from successful people and beat us up and denigrate us. i don't get it. the same people who want to reach into our wallets as americans every day fly first class on their own time. judge napolitano: maybe they shouldn't be taking the trip but if chuck schumer needs to go home or needs to get to d.c. he ought to be altogether in comfort. stuart: all the stature of a united states senator regardless of party. one more, don't go away. the irs has spent $100 million on new office furniture since 2010. are you a rage about that? judge napolitano: i don't think the irs should even exist much less have furniture to sit on. of course i am outraged. stuart: a hundred years or close to it. you are outraged by that.

judge napolitano: they shouldn't have to -- station to exist. i don't care what furniture they have. stuart: people like you to go into irs offices and pound the table. charles: you won't pound the table. judge napolitano: irs agents are just doing their job. los lerner of the ira's need to be reined in. stuart: that was a good last word. after the break we head to california to find out why one texas lawmaker is making a pitch their. he is trying to get their big businesses to texas. peace of mind is important when you're running a successful business. so we provide it services you can rely on. with centurylink as your trusted it partner, you'll experience reliable uptime for the network and services you depend on.

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>> credit suisse could be forced to pay $2 billion to an investigation into alleged tax eve asian. new york state banking regulators seeking hundreds of millions of dollars from credit suisse in addition to a fine of $1.6 billion being sought by the justice department. credit suisse shares down 0.1% and asters and point says a takeover from u.s. rivals pfizer is an opportunistic attempt to buy the company for a price that doesn't reflect the price line of new drugs.

testers and again rejected pfizer's offer but the u.s. company is expected to sweeten it later this week. pfizer's bid would be the largest takeover of british firm. testers and and pfizer shares of both with up arrows. stay right there, we plant our flag in california coming up next. up. a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people while investing billions improving everything from booking to baggage claim.

we're raising the bar on flying and tomorrow we will up it yet again.

stuart: j.c. penney, sears, about half of all shopping malls, racing to close some of those struggling stores and that is killing paula malls they are located in. more on this one. >> additional anchor stores for the malls. of the next two years j.c. penney will close 33 stores, sears closed more than a hundred. all these major stores closing, turning malls they are located in and many malls have both stores. turning to the smaller retailers in those malls. stuart: once an anchor store leaves. >> and a lot of retailers are saying if everything is going on line why should use and that money overhead for the sport? are starting to see the malls become interactive. into the golf courses and stuff like that just to get traffic in the mall. stuart: that won't stop the retreat as online shopping moves

up. thank you. we call zoo lily the amazon phenomenon with a lock of period ending tomorrow. insiders will be allowed to share it shares if they want to. nicole: stock is down 3% today. a couple things we should consider, they came out with numbers last week and that was week. people and may have been interested in selling, that is number one. on the heels of twitter, last week twitter loss of expiration occurred, and on that day, twitter dropped 17%. not saying zoo lily will. maybe we will see no selling at all. people who got in on the idea to sell on that day, 20 to our audio. stuart: right before you went on the air, now showing a gain of 3%. they are not selling ahead of the end of the lockup period.

it was up 2.8%, still way down from where it was. interesting to see if the insiders to sell tomorrow but at the moment somebody is buying. got to move on fast. we have the hots for a factory that has been dubbed a public nuisance by locals in california because of the smell but the factory is being wooed by texas. dallas state representative visiting the plant, visited yesterday, and in los angeles. you are trying to smash your way that source plant and bring it to texas and a lot of people don't like what you are doing and wants to make it illegal. what do you say? >> we are trying to make sure this company has an opportunity to grow its business. we understand the california climate for business is not as robust as in texas and we are trying to bring jobs to texas since we going to do that by

talking about the texas miracle and bringing these guys to texas. stuart: will you offer any tax breaks? >> we have incentive packages available as you saw last week with toyota, we will do that kind of thing. this company will likely provide incentives to get to texas and we are talking more about expansion and less about relocation. tomorrow this city of her whendale has the final determination whether to shut this company down and if they do we will be waiting with open arms in texas that even if they don't we want to see them expand into the great state of texas. stuart: there are people on the left to want to stop you doing this kind of thing. they say it is not fair and is a 0 sum game and the race to the bottom, waste of taxpayers' money if you are offering tax breaks to these people to come on over to texas, waste of money. i take it you think it will be a good investment. >> i think it is a good investment. the philosophical system is built on capitalism.

the capital flows, the opportunities exist and in texas with a low regulatory climate, we have a fair legal system and blow taxes. the capital will flow to the state like it has in other instances from all over the country not just california. stuart: let me go back for a second. people who live around this source factory, some of them just a limited number of the say that the smell is real bad and that it is putting the law and is a tough place to live. that is the reason the local government may shut them down. that is accurate as to where we stand on the story. is that correct? >> that is the complaint but only four five individuals in the city of apps su led table who made a complaint. i was right next to where the grinders are for the chilly days. i put my face in and smelled the beautiful room of the jalapeno but no tears, joking, coughing. this is a product that does not make noxious fumes, it is

something we can't understand. of the city of ur whendale wants to shut the company down, there's no other alternative than to continue other fleeces and we hope he considers texas. stuart: i wonder what you do with locals in texas if they complained about the smell of the plant you brought from california. what would you do with the locals if they complained? >> don't believe they are going to have that issue again. i was at the plant yesterday and assuming for a moment a local complaint, texas has a long history of dealing with complaints or fumes from the oil and gas industry. our legal system is different in the state of texas so we can deal with these complaints in a different way than you might have under the california legal system. stuart: clearly. thanks for joining us. we appreciate you being here. thank you. billionaire steve cohen cannot sell his $98 million new york city apartment. it has been on the market over a year. find out what $90 million gets

you and why people seem to be reluctant to buy steve cohen's paths. just after this. berkshire hathaway home services. good to know. the numbers are impressive. over 400,000 new private sector jobs... making new york state number two in the nation in new private sector job creation... with 10 regional development strategies to fit your binesseeds. and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones where businesses pay no taxes for ten years. become the next business to discover the new new york. [ male announcer ] see if your business qualifies. become the next business to discover the new new york. when folks think about wthey think salmon and energy. but the energy bp produces up here creates something else as well: jobs all over america. engineering and innovation jobs.

advanced safety systems & technology. shipping and manufacturing. across the united states, bp supports more than a quarter million jobs. when we set up operation in one part of the country, people in other parts go to work. that's not a coincidence. it's one more part of our commitment to america.

stuart: called it breaking news of the leg, alec baldwin reportedly arrested for disorderly conduct in manhattan. he got into an altercation with

a police officer after he was stopped for riding his bicycle against the traffic flow. officers ask him for id, didn't have any, started to get belligerent according to the police. ticketed for riding a bicycle the wrong way and disorderly conduct. he has since been released liz hedge fund billionaire steve, and having trouble selling his $98 million luxury penthouse in manhattan. it has been on the market over year. is it because of potential buyers who don't want to be dragged into an investigation? cheryl casone is here. run some shot so viewers can see what is there but surely potential buyers are put off by the guy who has been investigated by insider-trading. >> investigation is in, now managing private family fund out of the asset management business on a public scale but brokers have been saying -- stuart: brokers say because it is steve cohen and he says what? >> he says you are not doing a

good job selling my penthouse, hasn't had any buyers, has been on the market for year, originally listed for 115 and now is down 90. stuart: could it be a tad overpriced at 98? >> good question. he paid $29 million in 2005. stuart: and now he wants 98. >> she is trying to make a profit obviously and has a very expensive are working in there. i question the picasso in the living room. it is 9,000 square feet, has the use of the park, the city, 58th street on the upper east side, this is beaten 4, one of the most preeminent buildings in manhattan, a beautiful building, great views but he is mad because the brokers are not doing their job and he may have

to lower the price again. that would not surprise me. stuart: seems like it has some profit. >> five bathrooms, $98 million, something i have a hard time wrapping my head around. stuart: the conclusion is is overprice. i can read between the lines. thank you very much indeed. new at noon here it comes, look at all the money you taxpayers are paying out to the treasury, record tax revenue being abroad in. stock economist on why this is not a good thing. question for you. which is the most outrageous, the irs then is $100 million on new office furniture or lawmakers taking first-class flights on your dime or maybe jim guy nehr's misleading talking points? we are on it all in our 2 in two minutes. and

stuart: welcome to the second

hour. a gusher of money flowing into the united states treasury, tax revenues hit a record. the deficit will be lower. the downside. meanwhile the irs spends $100 million on office furniture. are you outraged? congressman flying first-class on your dime. are you outraged? the tea party weighs in the outrage. it is a company that wants to be the first with a new process to grow organ tissue in the lab. the man who runs the health, why can't he run those obama care exchanges? and we are ready, willing and able to use the dow, 17,000. there we are at record levels, barely. a couple solid rally away from

17,000 mark, 16,706. two dow stocks hit new highs earlier, one of those backed off. 3 m backing off, travelers moving to 92. the s&p 500, record territory, or it was, it was above 1900 and now it's slipped just a little bit. the markets like big deals, yes they do. at&t is in talks to buy direct tv. it is the battle for your living room. those two stocks are now down. we have a downgrade for whirlpool, that is a name you know, kind of a proxy for the housing market and it is down 3.5%. let's bring you a winner. green mountain, coca-cola increasing its stake, a coffeemaker, it is up by how much? >> the single cup servings, stock is up almost 10%. the guys on the floor, coca-cola increasing the stake here.

the stock is jumping on this news of their uping mistake to 16% from 10%, and brings shares to 26 million shares. why are they doing that, why is cut investing so much? because they really believe that they are seeing substantial growth potential for this company and that is why they continue to increase purchases. coffee. stuart: i could use a little, why not? bring it on. the dow is up 9 points. barely in record territory. never mind economic growth, the government is raking in your tax money. $1.74 trillion from last october to this april. that is an extra $132 billion compared to the same period last year. and the fiscal year isn't over. steven morris chief economist of the heritage foundation. how did this happen in a weak economy? >> first of all remember during the recession federal revenues

fell by 30% to 35% so we are making up for lost ground. federal revenues to they are barely above where they were in 2007 before the recession hit. they started to climb above that level so part of this good number we have on revenues is a result of the economy finally starting to pick up a little steam. the other part of the story that is not told enough is the sequester and the caps on the budget. they are working. nobody talks about this. stuart: cuts, did cut -- >> in washington for 30 years that almost never happened so i think the republicans when they took over congress, they deserve i think more credit for that 2011 budget deal. remember what happened last year. they relaxed the cap so increase the amount congress could spend but still, this has been a big success story and by my figures over half of the deficit reduction is due to those caps. stuart: that is the other side of the coin.

the deficit will be lower. >> in 2010 we had a record high $1.4 trillion. by my calculations and cbo is saying this, we could be well below $500 billion, that is silly huge deficit. stuart: we cut the deficit, more than in half, and we did it by cutting spending little and raising taxes a lot. what is wrong with that? >> of course they will. my point is if you want to see a gusher of revenue to get the economy moving, get that 3% to 4%. i would cut rates, corporate tax rates, it is working against america. if you had real tax reform i think there is bipartisan consensus, you could sink as huge revenue increases but if we get back to the 3 present to 4%, everything in terms of bringing the deficit down. stuart: that is everything.

give me 4% or 5% growth. >> in most recoveries we get that. i was looking at the reagan recovery, that is before your time, but we had quarters of growth, 8% to 9%. imagine what the revenues would be. this is good news the deficit is starting to fall, but remember, the other big thing that is happening that is going to start to turn the curve backup, the baby boomers are retiring, many thousands of people day. that will drive up, guess what? we have done nothing in five years about it. stuart: in the research with goldman sachs. >> had it with this. stuart: obamacare is good for the economy because in the early part of this year we were shelling out a lot of money to poor people in subsidies for obamacare, that found its way into the economy. >> that is like saying unemployment insurance was good

for the economy and food stamps good for the economy and more people on welfare -- here is another point. my goodness. goldman sachs, anybody make out like bandits more than goldman sachs during the bank bailouts and song? they came out of this smelling like a rose. this is a financial firm that loves big government. i hate to say it but whenever we have bigger government guess who profits from it? stuart: goldman sachs loves big government? >> look at the people they got a revolving door between people who work for goldman and worked at the treasury department, at timothy geithner air was a bold man. i really believe they have this kind of symbiotic relationship. stuart: you think big companies, huge corporations exert too much power over the economy and politics? >> not over the economy but clearly over politics. we spend $100 billion a year on corporate cronyism and corporate

welfare. that is an abomination. get rid of the subsidies to corporate america. stuart: when you just became wildly popular. >> all the -- go to the imf and all these organizations lead small businesses don't get health by that. the big ones do. stuart: you must come more often. don't be a stranger. appreciate it. back to the big corporate story of the day which really is the potential merger, at&t is at least in talks to buy direct tv. they want to pay $50 billion. with the stocks. both of them are down. if it did get together, would that mean bigger bills for homeowners, people at home who want their tv and internet connection? would it? >> look at the consolidation or potential consolidation in the industry. when comcast said it wanted to buy time warner cable, you had the ceo of at&t saying the industry is redefining itself with this deal. it is regulated to prevent why

wouldn't they approve at&t and directv, 26 million subscribers here. direct tv is $20 million. at&t has 6 million with uverse and people who pay for direct tv pale lot of money. stuart: it makes it together, and landlines and phones and bundled altogether. here is the package. >> merger of at&t and directv lets you do that and to control the price. if you are a regulator, and questioned how these regulators keep up because this is a landscape that keeps changing and sprint vice t mobile and sprint hookup, have the same kind of consolidation and higher prices. stuart: i wonder why both stocks are down. >> most of the cable companies and telecoms take a quick look, a few of them are down.

stuart: thanks very much. i have a so-called outrage story, scott hughes is here to gauge the outrage factor in today's society. everybody ready? the irs is spending one hundred million dollars on office furniture and that is the first one. are you outraged about that? >> pain-free period. it was made in the united states and we are getting back into our economy. it is ridiculous. what is to be expected? the price is right with the irs right now and they spin it and the new number that comes up this taxpayer dollars their winning. stuart: dreadful p r for the irs on top of los lerner, a contempt of congress, 200800 people got bonuses from the irs even though they haven't paid their taxes. is a disastrous piece of p r but you are angry and outraged. >> yes. stuart: we have got congressman occasionally flying first class on your dime to and from their

districts. there's a bill in congress to stop that from happening. are you outraged that politicians fly first-class. >> i'm not outrage that politicians like first-class. i am outraged we have to put in a bill to tell them not to fly first-class. i have a boss that does not micromanage. i asked why aren't you more hands-on? 5 had to micromanage you i have done a bad job hiring. if we have to have a bill to tell congressmen and senators not to spend dollars to get extra peanuts and a glass of wine we have done a bad job as americans hiring these congressman in the senators. stuart: we got an even feel that the moment. >> fair and balanced. stuart: another one for you. timothy geithner error reported the prepped for his appearance on a sunday talk show. of political guy within the white house is in go out there and say that the deficit, social security does not increase the deficit. you go out and you have got to say that. we didn't go out there and say

that but are you outraged that the white house would try to give that kind of deceit and spin? >> no. that is what you hear in media have been saying for years except the past year knowing social security would add to the debt. what i am outraged about is like i was outraged by secretary gates, they wait until they are out of office and have a new york times best seller and then they decide to disclose this information. i would have a lot more respect for a man if he did it while in office, while he could change policy than sell $19.99 book on amazon. stuart: do you think the word out rages overuse in our society because i do. >> i do. synonyms, you could being free -- disappointed. disappointment is better. i am disappointed in this government and this country i love so much the we have been reduced to the site of scandals. stuart: i will take disappointed as opposed to outrage which is overused. >> with a smile on your face is the hardest part.

stuart: when you too. thanks very much. how is this for gee whiz technology? building organs using plastic and stem cells. could be closer to reality than you think and we will bring you this in just a moment. we're moving our company to new york state.

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stuart: strong profits, they work in the cloud, they store your stuff for a fee up there in the cloud. big game for the stock 8% higher. good stuff. different story, totally different story at elizabeth arden, demand falling for the company's product across the board, down 20%. 42% of medicare patients were subjected to unnecessary procedures, that cost $8 billion in what is called wasteful spending. liz macdonald has a breakdown. liz: we're talking unnecessary

x-rays, back surgery recommendations, this is an interesting study in the journal, internal medicine magazine, harvard, doctors waited on this study in 2009, but the fallout is unnecessary procedures, a medicare patient and not get certain procedures because there is a crackdown on them. stuart: would the doctor make more money, hate to offer in those terms if they offer unnecessary procedures, the doctor gets more money. is that the nature of the corruption? >> fast food health care, and doctors get a lump-sum, they get to use their lump-sum accordingly, the cost conscious about it. how they get the lump-sum for medicare and follow the cedar sinai model, a pops a screen of 120 procedures that may be

deemed unnecessary. go in as a medicare patient, your doctor punches of this procedure it could be deemed costly and unnecessary and you won't get it. those that is what is going on. stuart: thank you. we brought you the story on "varney and company" of companies working on 3d printing organ tissue. our next guest is working and taking that to the next step with public row spinning, heart ceo david green joins us now. welcome to the program. you got to explain this to me because you brought the gizmo along with you. let me see if i can get through this. show me that >> tracheal scalpel. stuart: you would take stem cells out of me. >> from your bone marrow. stuart: put them on here, put them into the gadget. >> we call a bioreactor. stuart: stem cells and this would go in there. this process happens and it melt

the stem cells on to the scaffold. >> two days later the old trachea, usually disease, will be taken on by the surgeon and a new one would be put in place of it. stuart: i you growing tissue? >> yes. stuart: that process helps grow the tissue. you are asking the fda for permission to use and introduce this new technique. >> eight patients have been treated the ball was a compassionate use, they have no other option one of which was done in the u.s. but next year we hope for formal clinical trials. stuart: what is the advantage? what you getting medicine that it doesn't have now? >> these patients are the most seriously, tracheal cancer is extremely fatal. it is more failed and breast cancer or prostate cancer so these patients have no options but treatment and this will save their life. stuart: a brand new process. electro spinning. >> that is the technique for making fighters.

it is hard to see. tiny little hairs. just the right dimensions of cells which are small can fit into them, attached to them like they're big and merrill and grow and fill out the scaffold. stuart: who invented the electro spinning device? >> the technique of building this was invented by a professor named macorini to develop the techniques and we license them from him. stuart: and hart, publicly traded company. the entire thing depends on you getting permission from the fda to extend -- i won't call it an experiment that extend this technology to modern usage. >> widespread usage. stuart: what role do you play? >> i was the founder of the company and ceo of the company assigned by training but really i am the ceo. i put the pieces together with

scientists and engineers to make this work. stuart: you have staked the farm on electro spinning. you had four patients so far. eight patients so far. >> six of eight are still alive. the separations who had no other option for treatment so they were very sick at the time of treatment. one of those over five years posted surgery and her follow-up was one of the top medical journals, british journal. stuart: this is fascinating. we love to bring our viewers, i hate to say g whiz technology but that qualifies. >> not more than a few years ago this was considered science fiction but to date is medical reality. stuart: extraordinary, thank you for being here today. keep us up to date on your progress. appreciate it. dow industrials up 27 points, still got the shiny graphic showing dow 17,000. don't think we will use it today but we live in hope up 28 now.

your tax dollars flowing into the treasury at a record rate. can you expect that thank you? my take on that is next.

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stuart: i alone some microsoft stock, it is back above 40, going to sell x box i for number hundred dollars in june, that would be in the one hundred dollar discount. it is up 1/2%. test like is one of our momentum stocks, not much momentum today, it is up 25% this year, up a bit now. the man who runs he health, excuse me, a private health-care exchange, why can they build those 8 websites, better or cheaper, and after i do my take in just a moment. when tax money flows into the treasury at a record rate, what would you expect somebody to say thank you, don't hold your breath. here is my take. as of now seven months into the

financial year you have paid $132 billion in taxes than the same time last year. despite a weak economy we have doug much deeper into our pockets and give an uncle sam a revenue bonanza. 3.5% more in income taxes, 14% more in corporate taxes, $1.74 trillion in total. this gusher of money flowing to the government has had some unpleasant side effects. its slowed the economy, held back the job market, has funded a wildly inefficient government bureaucracy and has paid for the ruin his introduction of obamacare. some damage they're. plus it is not enough money. the president wants another trillion over the next ten years and the people providing all of this extra cash have been demonized. have you heard harry reid recently railing against the koch brothers. tax rates up, tax revenue up, wealthy people pay more and more and more but it is not working.

we have not restored prosperity to middle america. in fact from the president on down there is a deliberate attempt to beat up the people supplying the money. they actually blame the rich. they are mean-spirited they say. if they would just pay a little more everything would be fine. wrong. we will restore prosperity when we encourage work and effort. when we reward drive and talent and ambition and wouldn't it be nice if we returned to a civil society to all those people paying through the nose we said thank you. i know. dream on. (mother vo) when i was pregnant

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♪ charles: do not adjust your television sets. i am charles payne. i am going to take over the rest of the show. stuart will be back tomorrow. let's go to lauren for more. >> why do we need wi-fi in our car if we have data plans on our phones? it is $5 a day, potentially. this is what gm is doing.

it is going to be powerful. the antennas on the roof. hours and hours of that clicks that he owes. so many data plans as there is. five dollars a day. charles: that seems ridiculous. >> ramping up their dashboard with wi-fi. charles: the automobile is an amazing thing. >> you are talking that i car? it sounds so 1950s.

[laughter] >> hold on. the construction injury on june industry. they are saying that there is a need to this. not so much on the road. >> pushing for that. >> with when this comes out next on the malibu, the 2015 malibu, we will see if it impacts the sticker price and what consumers have to say about it. charles: $474 million wasted on failed health care exchanges in massachusetts, oregon, nevada

and maryland. a company that you know. how much does it really cost to build? we have been working around them for some time and trying to help. charles: you are a website business. i would imagine a whole lot of correlation of similarities. isn't that outrageous? >> charles, it is a lot of money. why did we ever spent.

you have a lot of people who probably do not have as much business experience that you would like to have. e-commerce is not easy. you will find not many have come through to the amazon or facebook or e-health. most fail. why would government these different? charles: i am not sure what the exact cause of failure would be. it is a lot easier to put up a website and 10-15 years ago. they have access to so many people. it is sort of unnerving. obviously, no one will be called for before. they wanted these ex fail. you do not have to be a conspiracy theorist to get this

figured out. >> i do not know. i have heard that as well. what i do believe is the way to make this work, like obamacare or not, it is here. i do not think that it is going away. you have to have a really good partnership with the private sector and the public sector. every time we have enrolled somebody, it is a fraction of what government spends. when you use the private sector, we are saving significant taxpayer money. liz: it is elizabeth macdonald

here. here is the issue with the federal and state exchanges, they have to be able to connect to different parts of the federal government. could you have done that? could you have done the same kind of system and build this even cheaper than the way the government is doing it now? making sure these people are actual taxpaying, federal citizens. >> it does need to happen inside of the treasury department. it is not necessarily a difficult thing. sure we could do that and others could have done it as well.

we put it up for the federal government. we had it up and running and 62 days. it ran flawlessly. they decided they wanted to move it in another direction. you have to get the private sector helping and all of this. charles: just getting some word out of virginia. they say we have older people coming in. people with very poor health coming in. not enough young people coming

in. any idea of what we can expect? >> we track this. we have never seen a year where there has not been a premium increase. the ones we have seen recently -- we have found every product that has been bought at e-health , the average cost is 38% higher. if you look at who has enrolled, not enough young people. we need about 40% geared.

charles: the real halftime report is coming up next. a big question for the company. you will find out after this. ♪

♪ >> the highest court in the european union says individuals can ask to have stuff removed in certain cases. the right to be forgotten. let's take a look at google shares. deals with advertisers locally. facebook has not commented on how serious plans are in china.

facebook shares right now trading to the downside. stay right there, everybody. the real halftime report starts next. ♪ we're moving our company to new york state. the numbers are impressive. over 400,000 new private sector jobs... making new york state number two in the nation in new private sector job creation... with 10 regional development strategies to fit your business needs. and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones where businesses pay no taxes for ten years.

become the next business to discover the new new york. [ male announcer ] see if your business qualifies. charles: it is time for the real halftime report. i want to start with mike. when does the dow hit 17,000?

>> no earlier than o 4 charles: tray, can you beat that? >> i think this market continues to work higher. charles: it will be crazy. charles: do you like this? >> i do like this thing.

more importantly, it moves them into the battle where they are losing right now. that is kind of the de facto thing in the living room and told theater these days. at&t needs to do a deal like this. charles: nicole. nicole: all about the cloud business. this is for demand on the rise. this is all about being cloud based. charles: that stock needed a nice rebound.

>> those are the companies that i want to own the most. the companies with the most innovation. >> a really great buying opportunity. >> we clearly, wall street has their beer goggles on. the ones with the strong

business models are still moving higher. charles: this may surprise some of you. closing in $132 more than last year. revenues were coming into the door big time. we are still seeing higher tax rates. charles: income taxes. it crushed a lot of people. mike, i want to get back to you. >> coca-cola know their beverage market as well as anybody.

colt is very savvy. they they do this kind of thing as their model. a nice long honeymoon. charles: everyone is drinking less carbonated soft drinks. has everyone downloaded the fed app? >> not meet. [laughter] >> looking at the 10 year. >> forward guidance. [laughter] charles: stop asking. you are fantastic. that is it for today's halftime report. traveling cross-country.

♪

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♪ charles: what are small business owners saying about obamacare? joining us now from texas is tricia and john. creating a lot of pain for a lot of businesses. >> we have not been hearing that. so far we have talked to over 50 small business owners starting out in new york to austin texas. there is a semi automatic relationship they are. small businesses for the identity. charles: there is no dow about that.

there are some serious issues. a lot of them have been growing. a lot of people just starting their business. charles: we have the national federation of businesses. more businesses divan are created every year. what sort of thing is sparking them?

>> the one thing we have noticed is everyone has perseverance. we have definitely talked to some remarkable business owners. the boardwalk fire nine months later. each time we have come back from the brink. charles: they are very optimistic.

see. charles: thanks a lot. your take. the audience. that is next. ♪

♪ stuart: would you ever consider standing in public office? charles: i am only just now in the last few years becoming a man that my mother raised. other than that, i would love to. i would have done a much better job than president obama. i would have beaten president obama. charles: that was my response to stuart asking if i would ever run for public office. now here is your. michelle had this to say about congressman flying first class. they are working for us and many of us can't fly first class. if they must fly first class they should fork over their own money. they are paid more than they

deserve anyway. and this, spain $100 million is disgusting and simply unacceptable. now here is deirdre bolton. deirdre: we are giving alternative ways to invest your money beyond stocks and bonds. you have the right to be forgotten, that is what the eu court told google. remove digital traces of what you don't want. facebook censored in china, but may be taking steps to open a sales office. if true, the first time facebook employees work on the ground in asia's largest economy. manufacturing and property data showing signs of slowing. we will tell you what it means for tech and real estate investment.