victim this time. lou: we wish you speedy recovery. again, thanks for being ill and bearing up with us. thanks. >> i appreciate it. thank you. lou: stay tuned for cavuto. coming up next. thanks for being with us. neil: filled in paris. all because of a cartoon? if that is how little it takes to set bad guys off, why aren't we doing a little more to make damn sure they never get the chance? welcome, everybody. i'm neil cavuto. go ahead and joke about jesus. don't mess with muhammad. what he said in jest sometimes brings out the terrorist in earnest. forget about tuning him out. these terrorists want to take him out. no logic. no mercy. for much of the world no idea how to respond. we are shocked. we are saddened. unwilling to say what everyone knows is the

case. call islamic terrorism for what it is, a clear threat, and a growing danger. no matter your religion, even if you're not religious at all bush 41 defense official said we all have to wake up now. al gardener says we can kiss our civilization goodbye if we don't. this is bigger than religion to you and us. this is about society itself, isn't it? (?) y >> it's the defense of our values and civilization. everything that we stand for and believe in. and the terrorists today on the streets of paris murdered at least 12 people. they tried to strike really the very heart of western civilization, really. our belief in freedom of speech. and these islamists have utter contempt for the values we hold dear to our hearts. make no mistake here neil, we are involved in a global war against

islamist terrorists who are didn't have by driven by distinct ideology. we need to identify them as islamists and we need to identify clearly the nature of the enemy we're fighting in order to defeat it. neil: the reason i'm grateful for the video we're showing as i was for the video of those planes ramming into the world trade centers is they're constant reminders of how crazy these terrorist groups are and what they will do. we need that shoved into our faces to wake us up and say the obvious. but we don't. >> we're absolutely right. and nile is right as well. this is an ideology as much as religion. we need to fight it as if we're fighting an ideology like naziism. we have not done that. we've been too politically correct. the one person who gets it. and we need to see more in the media.

this is the speech by general al sissy. the egyptian president. he called for a revolution in islam to get away from this act. to get the clerics to read the islam in a different way. this is the most strategic thing since 9/11. we should support him and follow up on it. this is something that won't come again for many years. this is an opportunity we can't miss. neil: obviously, the french (?) knew that this newspaper was sort of tempting fate and that would be targets. i don't think they envisioned this kind of thing developing. how do we respond? we know this is a danger. if you mess with this this is what you could face. you obviously say, don't stop doing. but what do we do in the interim? >> well, we have to

stand up for it. we have to say okay, as much as we put up with people taking down christianity, i mean we've had the so-called artists putting crosses in jars of urine. i mean, if the muslims can't stand that, they don't understand modern society. neil: what about you, what do you say? >> i think we have to do three things. we have to stand up for freedom of expression and defend it in every way that we possibly can. secondly, we have to defeat the terrorists at home and in europe, there are currently thousands of al-qaeda opportunists. uk has about 2,000. i suspect france has a similar number. these al-qaeda officers have to be rooted out and defeated. neil: from outrage over the internet to carnage over cartoons. get edgy you might as well push yourself over the edge. maybe it's time to push back. lizzie, you do see a

pattern here? >> you reported on cavuto, on your show, it's north korea getting so bent out of shape. the fbi, by the way today did say it was north korea that hacked into sony because of the movie "the interview." the penn report saying writers and governments are cracking down and doing surveillance of them -- writer self-censorship there. this aggravated this inflated sense of victim hood that every perceived slight is worthy or should be acted upon in terms of murdering somebody. their sense of entitlement to murder somebody is deeply unhinged. you're absolutely right. we can't solve the problem unless we name it. that is islamic terrorism. those two words need to be put together. neil: i know the preaching of islam is generally peaceful and everything. i don't hear the calming

muslims rising up and saying this is disgusting. that's what gives me angst. >> it would be significantly helpful if we got the support. (?) rational people don't believe that all of islam is bad. neil: if you believe that some -- even moderate muslims are very frightened of these extremists groups. >> if they're not with them, they're against them. they are. neil: so they lay low? >> they are tweeting on social media. there are modern muslims in paris france, saying this is wrong. i want to say them marching. i want to see them against murders like this. >> we're thinking like rational people. these aren't rational human beings. they're fervent about their love of muhammad and unfortunately, we live in a different world now after 9/11. >> i think the scary part, with hitler there was a hitler. this is not. this could be in someone's basement in your neighborhood. you don't know how to corral these people to

stop this problem. they keep popping up. >> representative king said on fox news, when we have problems with the mafia, we went into the italian communities. when we had problems with the west ease, we went to the irish communities. i know the fbi is doing surveillance on mosques but he's saying we need to be more aggressive like that and get more information about who is acting to possibly harm individuals. >> that's the hardest part. you don't know where they're coming from. they're targeting cartoons. what are they going after? (?) i think it makes that much harder for us to get a grip on it. it makes it scarier to be out there. >> how can we expect the rest of america to follow without the administration leading? neil: we're afraid to call it what it is. >> but france wasn't. >> originally obama didn't call it a

terrorist attack. he did finally say it was a terrorist attack. that wasn't his first reaction. he didn't say islamist terrorism. neil: it's open game on jesus and jews and everything else, but not here. in the meantime, you think it's cold out there now. to the guy who says you ain't seen nothing yet. ♪ music ♪ ...the getaway vehicle! for all the confidence you need. td ameritrade. you got this.

neil: well say it ain't snow joe. meteorologist joe says if you think your heating bills are rocketing now get ready for them to soar this winter. joe, what is happening? this is not a short-lived affair? >> no. it's not. i was on with you on thanksgiving. pull back in december.

it will come back. here it is. the good thing, i think it pulls backs one more time later on in the month of january before it comes later january and february. it's coming in pulses. neil: what's coming? the cold weather, the snow both? >> the cold and the snow. this winter is very similar to winters we saw like 2009 and '10. in '02 and '03 where you started getting hammered. we got to a very fast start. backed off. now we're back here with this extreme cold. how cold is it? in chicago it won't reach the benchmark it hit last year. the temperature in new york city last year 4 degrees above zero could get hit tomorrow morning. i bet boston to beat its coldcoldest and go after the two below which was set in january 2011 which was the coldest in the past five years.

this air mass is worst than last year right now. i'm expecting next week to not be quite as cold, but more snow in the pattern. a couple of storms to the northeast. the northeast corridor has been left alone so far. it may end next week. you back off a bit. the planes get mild. later january, february on into march we expect this winter to roll on. how much effect does it have on your bill? the price of energy has gone down. i don't know about that. the weather will pack a punch. when this is all over, i think people will be debating which was the worst winter, last year or this year? neil: well demand certainly affects prices. the demand for heating oil and just utilities will be escalating. so we'll see what happens. >> yeah. well retail is interesting too. weather has its tentacles in everything, believe me. neil: you were right about these

curves. happy new year to you. hear verizon ceo dennis, obama r president obama isn't helping the economy. (?) you don't like what you -- bailouts credits. on and on. >> neil, where should he be? we know him as the campaigner and chief. okay. by the way, maybe the best place for him to be is out campaigning and maybe out of the way. but there is nothing that he has done -- neil: he looks at the markets. looks at the economy that's all him. >> that's not -- neil: who is it? >> there is nothing he's done that's helped the economy. first of all, a free market economy helps itself. it doesn't get help by more taxation by things like obamacare by huge spending levels that we've seen in the last

six years. neil: i agree with you on all the above. he's pointing out, if all this is dangling, thendanny says,you see it in the stock market. and you certainly have. >> let's test what you think may be reality. i don't believe that the economy is significantly improved. if you look back to what it was before he took office we certainly gotten back to even that point. but what we look at is things like employment numbers. we look at -- i mean look at the employment numbers alone. the employment numbers have changed. the way of calculating the employment numbers have changed neil. there's still 100 million people out of -- neil: i know you don't buy it. what about the federal reserve. isn't that the reason why we're doing okay? >> the federal reserve in part is the reason we're doing okay? neil: and guys like you cut costs to the bone.

>> businesses aren't hiring. if they're hiring they're hiring temporary employees. that's all they're hiring. they're delaying capital investment. they're trying to figure ways of cutting their costs so that they can pay these huge new taxes that have been imposed over the last few years. what needs to happen here is cut taxes fix obamacare, allow the economy to build itself. stay out of the way. neil: in other words, the president is doing just the opposite of that around the country. >> it doesn't help. it doesn't help. neil: thank you very much. harry reid and elizabeth warren still say the rich aren't paying their fair share. since the top is 45% when you throw in medicare and health care-related taxes. what is a fair share?

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neil: i never stop loving that. anyway it's time for neil's spiel about the last spiel about the

riches sweelriches sweet deal. demanding more from them. harry reid and elizabeth warren picking up on last year's rich crusade by upping the ante. it goes like this, you got it, we want it. now cough it up and give it. they already raised the top percent you throw taxes on the rich, it's closer to 45%. i haven't even got to state and local taxes that takes close to 55%. if paying more than half of your income in taxes isn't enough, tell me exactly what is enough. is it 55%, is it 70%? what is it? all i know is that charlie told me the top rate used to be close to 70%. we have a lot more room to go. to go where congressman?

back to those levels when you chased money out of this country? and they wonder why corporations keep money in other countries that countries want that money and offer any incentive to get that money. is it me or is it any wonder that money finds a home where it finds the least resistance and the fewest penalties. they seek out havens. they're not stupid. and they seek out those with the lowest tax rates. not the kinds of rates they're finding in this corner of that world. many liberals don't get it but tragic they keep pushing it. just when the economy is gaining traction we're risking chucking it all because of them. because i distinctly remember president obama saying finally the rich are paying their fair share when he got his tax hikes through. i'm telling you now that it isn't true. it's easier to demand

more revenue than show simple spending resolve. let's settle this once and for all. what is a fair share? i want to hear from both sides. not 45%, you have to go higher. matt says not 45%, you got to go lower. lower. lower. all right. now, what? >> so let's talk a little history here. eisenhower doesn't get enough credit. you're a republican eisenhower, tax rates are the highest. income earners was 90%. following that, that caused the highest growth period in the '50s and '60s. the captains of industry, the titans -- neil: you want to go back to 90%. >> under reagan it was 50%. neil: he brought it down to 28%. >> we went into recession. neil: with rates a lot lower

when he left office. >> yes. neil: bottom line. so you don't -- you don't think 45% is the answer. are you saying 90 percent? >> no. i'm saying let's find somewhere in between. neil: in between is like in the 70s. >> two out of three americans think the top earners -- neil: what should it be? >> the top 2% 70%. neil: matt, what say you. >> she's more radical from john f. kennedy. even kennedy realized that income tax rates were absurdly high. by the way, it wasn't ronald reagan who brought the rates down he was one branch of government. it was dan and a lot of democrats who also agreed that we ought to bring those income tax rates down. reagan had to deal with congress, with a democratic congress. neil: his landslide victory got him to twist a lot of arms. if it's not 45%, what do

you think it should be? >> 28% at the top line is good. that's where small business gets taxed as well. neil: i remember the reagan boom we had. i just think washington has a propensity to spend whatever money that's coming in. but a lot was coming in from those tax cuts. >> a lot of hard-working americans are getting taxed the most. neil: a lot are taxed at the marginal rate. the marginal rate is close to 40%. >> over the past 50 years, this is the lowest the taxes have ever been. there is a false -- neil: you're a very smart woman. you're going to be a big star. >> thank you. neil: you will be in the 1%. are you going to be happy to pay 70%? >> i will. neil: you're lying through your teeth. >> i'm like kristin bell. neil: when i hear a lot of liberal friends -- what does

that say? but i always hear this, yet when they come into money, very few are willing to part with -- with that much of their money. >> that's right. this is basically -- it's an income tax. that's the wrong name. it's a tax on jobs and on work. what wealthy people do when the tax rates go up is they work less. i don't know why that's good for the economy. some people drop out of the economy and deal on the vast resources they've been able to save over the years. we want as many people working as we can. that's good for all of us. if we'll raise the taxes to 90%, what will we do with the revenue? we'll spend it. neil: you have to choke the beast here. the more money you give government, the more it will spend. >> well, to keep the infrastructure in place. there are roads in disarray. how do we pay for these things? the middle class is carrying the burden -- neil: why don't you --

>> spending has gone down since obama. >> because republicans took over congress. >> it has gone down. who brought that up? your bush. neil: wait a minute. no no. our budget goes up each and every year. >> the deficit has gone down -- neil: no. we're crowing about half trillion dollar deficits. they were a trillion. we think we hit a home run. our debt is even higher. you're okay with that? >> i'm not okay with that. the people making the most money, we need to tax them. the middle income earners are subsidizing them. is that fair? neil: what is it? north-south? i don't care how thin you are, it is time for you to go on a diet. i'm talking about a financial diet. this one only takes 21 days. are you up for it. how about sunday we start it. i even have a woman who

will coach us through it each

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neil: all right. a fox biz alert, three out of five americans have no savings. none. zero. many are just one missed paycheck from financial ruin. but michelle singletary says there is a way a diet a financial diet. she lays it out in her book "the 21-day financial fast." your way to financial freedom. start this on saturday. then what happens michelle? good to have you. >> so glad to be here. for 21 days, you won't buy anything that is not a necessity and you won't use plastic no credit cards. everything gets shut down. neil: pay your immediate bills. what do you describe as a nonnecessity. >> well, eating out. going to the movies -- neil: whoa whoa, whoa, so eating out?

all right. you've already lost me there. but go ahead. >> eating out. the latte the movies, hair done, nails, i mean nothing that you wouldn't absolutely positively need. now, mind you, this is just for the three weeks. and the reason why is because i want to shut everything down. shut out all the temptations to consume so you can focus on where you want to spend your money. a lot of financial experts will say cut out the expensive coffee and everything. that's the kind of thing you need for getting your day started. not until after the fast, then get the coffee. you'll realize, i need the coffee but i can bring my lunch. you look at what you have -- you only have a limited amount of resources. focus on what you really want. that's what the fast can do for you. neil: you mention the no-no on credit and even debit cards.

why? >> studies show, when you use plastic debit or credit, you spend more than when you use cash. if you go to the market a 20-dollar bill, you won't be picking up things here and there. you'll only spend within that limit. but when you use your debit card, oh, this is on sale. i want this. the kids are in the market. can i have this, mommy then a 20-dollar trip costs you $60. neil: we live in a society where it's inconvenient to carry so much cash or you risk looking like a mob figure if you do. your solution would be you don't need it all. just enough to get what you need. right? >> people ask me this question. i'm not telling you to take $1,000 to walk around with it. you'll actually visit the bank. get actual cash. just a couple of days you need it. here's the thing if you won't be spending on anything that's a necessity, you won't need a lot of cash

anyway. right? neil: good point. you're shooting down every one of my internal rejections. your hope is after 21 days people don't return to their slothful ways. they might rebinge on something, but by and large it's human nature to learn something during that period. >> that's exactly right. when you do something for a long period of time. twenty-one days. forty days. it kind of resets you. are you going to get out of debt in 21 days? of course not. but what it does -- and people tell me this time and time again when they do the fast and do it with the book, it's not just about not shopping, it's finding ways to save. saving money for your kids college fund. every day of the fast is a different topic. during this time, you'll concentrate on, what do i really want to do with my money. at the end of the day you work really hard.

don't you want to remember what you do with your money? i mean people will spend and don't even remember what they do. you go to the atm and get $50 out, two days later, you don't know where it went. i want you to reset it and focus on what you want. if that coffee is the thing that excites you in the morning, i want you to have it. if going to the beauty parlor so you can have peace, i want you have to it. but you can't have that and the car and the vacations. you can't do it all. figure what you want during the fast, then spend your money on that. it's like a reset money so that down the road you can have the financial life that you really want. neil: yeah but you left me out. i got your book. i read it. it was really good. it really was. you left me an out. you left in the eye of the beholders. so to me pastries are vital. they made it to the top of the list before the mortgage. >> i cheated a little bit. i said i let you do some

things. if you're in debt, you have to cut things out longer than the fast. neil: you're on to something, i will give you credit. but i will stick to the pastries no matter what you say. good luck saturday as you kick this off with your legion of fans. >> we start sunday, the 11th. no. sunday the 11th through the end of the month. neil: i'll start saturday just for the hell of it. >> follow along. tweet about it. let me know how it goes. neil: michelle, thank you very much. if there's anyone who needs a financial diet it's uncle sam. fatty arbuckle and getting fatty. that's an age-old reference no one will understand. sending checks to students and not burning the cash calories, tracy, i think we need a trainer here. >> we need more than a trainer. we need the adults to go up. $3 trillion that's not being watched by anyone.

loans to solyndra. students and housing took off during the financial crisis. once they give out money, they never stop. financial crisis over, stop giving out this money. both sides have asked -- went to significant on spigot for money. got it. neil: we can increase our credit. >> let's look at higher education. you say some of these -- almost 90% of this money is for student loans and for housing. neil: right. >> so the student loans. you have higher education, constantly raising their prices, why? because they know student loans are easy to get. we have a systemic problem. it's cost a quarter of a million to send a kid to private school. that's a problem. i'm agreeing with you. neil: she argues anyway. >> what i'm saying, we have a distinct problem. because nobody is

watching the shop -- there's three levels of mid-managers watching this trillion dollars of debt. i why would the government choose to have three mid-level people managing $3 trillion of debt. neil: we keep digging different. >> we did this show on cavuto four years ago. the treasury has a little known bank the federal financing bank. it has financed solar projects. the us postal service. housing programs. less than 1% interest rates. and unlimited financing. it's tesla. it's google. it's morgan stanley. they come in with their projects and get this money backed by us taxpayers. and i'll tell you something, neil another issue here. when the federal government weighs so deeply into the credit market and takes funding out, that's money that could have gone toward

good projects. neil: the author is talking about, that does make sense whether you accept the premise or not, you have to prioritize. our government does not. >> we are talking about expanding it. we're talking about public buildings now. infrastructure, we've been hearing that. this is not like the export/import bank. all these things need to be thrown out the door. >> do you know how many empty federal office buildings there are across the united states? neil: it's ridiculous. >> it's who we lend to the money to. are they creditworthy? will we get paid back? neil: just because he cries that john boehner can't be heartless. some republicans who crossed him are f

neil: he still has the gavel. now his critics are the ones who are goners. john boehner removing

two members from the house rules committee after not supporting him in yesterday's vote. tom not at all surprised by the move but boehner could have found a better way to have done it. what should he have done? >> you have to understand the rules committee is the speaker's private committee, and he wants people on that committee that are loyal to him. neil: i could see that. i don't know why these guys are shocked that he did it. >> well, i think it's the way he did it. in the night. not telling anybody. i think if he would have called those two members in and explained to them that he needs people that are loyal to him on that rules committee would they resign, they probably would have. neil: they called you the hammer for a reason. i'm sure you didn't suffer fools gladly. where do you draw the

line between being tough and vindictive. >> being tough is you don't take anything personal. if the members are violating the rules of the house or doing things that are contrary to what the caucus, what the other republicans -- what's important to them, then you have to -- to be tough, and there must be consequences. in this case, just because they take on the speaker, it doesn't give you the right to take it personally and be vindictive. neil: now, do you think the speaker is -- and there is an argument. i know he thinks he faced the most opposition a speaker has in a industry. it could have been messy. it didn't end up being. he survived. does this bode well? do people have long memories and say -- i won't let that happen. >> well, it doesn't bode well for the next few weeks. or even today or tomorrow. what he needs to do is

reach out to these members that are disgruntled. it's more than 25, neil. it's closer to 60 to a hundred. neil: a lot of them didn't have the guts or wouldn't put their head on the line. >> yeah, for whatever reason. and i'm sure that the speaker understands that. i don't know what he's going to do, but my advice to him would be to reach out to these members and talk to them. because if you get 30 members, which is the margin of error in the conference, not voting for a rule, you can't -- you can't run the house. so you have to have them at least voting for the rule that allows for the debates of the bills on the floor. and if these members get these backs up and 30 or 40 of them won't vote for the rules then the democrats will vote for the rules, you're in a big, big world of hurt. neil: he might regret what he did. thank you very much.

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>> it's brilliant. because he has like 59 million twitter fans and the 30 and under crowd doesn't even know -- neil: even now? >> they don't know who calvin klein is. they put frank sinatra in that -- they don't

know who he is. >> we're talked about it. it's a huge move. actually i think it's over 100 million followers he has on all of his social media. neil: well they passed me up and i have about 100. >> they're an iconic brand, and they're -- neil: they lost. okay. i'm telling you calvin. hello. >> it should be neil. neil: but i digress. >> i think you have 5 billion followers around the world. neil: maybe they're right. especially for a young audience. >> justin bieber is so 1992. this is a fad. it will go away. no one will care. by the way, why doesn't he get a calvin klein tattoo so he knows what it is. >> he actually looks good. i have children. not because i actually follow this kid. there's the whole thing with celina gomez. neil: on to issue two.

i have heard on tightening your belt. i am vomiting. rob. that is just for stupid -- a lot of this stuff is headlining the show. >> some of it is ridiculous. it creates competition. it has these technology comp head-to-head. the vcr, the xbox, all these technologies were founded and brought out -- no, no, no, but give me a break. >> who will buy that belt? >> no one will. neil: i'll scratch it off. >> you heard about the connected fork. the happy fork. they should have called it an annoying fork. it tells you how many bites you've taken. neil: 7,400 bites. >> i think it's a good idea. i think the breath meter is a good idea. a bunch of people i might gift it to who have a lot of bad

breath. neil: now and then the cookie, items this could be the tell-all of the show. >> they lead to great hits. (?) >> no, they do not. what about the recalls of those who drive it. neil: i can't say the number of people i would love to give the self-driving cars. this goes to your nasty emailers. the cavalry have how could a luminous protein in jellyfish impact life expectancy in the u.s., real estate in hong kong and the optics industry in germany? at t. rowe price we understand the connections of a complex, global economy. it's just one reason over 70% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing.

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you park your car. as you walk away crunch! a garbage truck backs into it. so,you call your insurance company, looking for a little support. what you get is a game of a thousand questions. was it raining? were your flashers on? was there a dog with you? by the time you hang up you're convinced the accident was your fault. then you remember; you weren't even in the car. at liberty mutual we make filing a claim as stress-free as possible. see car insurance in a whole new light. liberty mutual insurance >> "what's the deal, neil?." >> man, oh man, what is the deal with the neil bashing this early new year. resolutions i didn't ask for from a lot of you. i wouldn't be one bit surprised, kip, the man is so insanely jealous of me.

tim, via yahoo! -- jim in california -- like, who's who? then we're still getting a lot

of e-mails like this, lately -- well dish ain't budging, guys you really are going to have to start switching. you deserve better anyway, up to the put up with that? then did christie make his presidential dreams a memory? the video from a box that many say has the new jersey governor's political future in a box. tim e-mails, linda -- maybe in retrospect, should have watched the game at home.

bill in florida -- then there's max in washington who thinks we're all getting worked up for nothing here. well, if you're idea of a refreshing breeze is politician who sits in owner's suite for a game after getting flown via private jet to attend the game whatever. rose --

thank you, rose very nice, and i might take you up on that. in the middle of the night, 3:00 a.m. where are the meatballs? and young people who won't invest, a few shaky opening market days confirming worst fear it ain't worth it. sherry says -- then it might be cold and snowy out, there good luck getting your kids to sled more out

there. more and more communities are denying the privilege causing a lot of them because they're getting sued over. lynn has had enough of it. okay. i don't know. ditto rob in minnesota -- then there's linda -- i hated dodge ball that's just me. ray in maine --

you know it's a very good point, i think the good point to everyone but lawyers. thanks f see you tomorrow.. kennedy: are you willing to die for freedom? the sad, brave and resounding answer from a publication in paris was yes absolutely. the weekly paris newspaper "charlie hebdo" with cartoons and commentary and hasn't backed down in poking fun at muslims. people in this country are used to taking heat for religious beliefs, that is a fundamentally constitutionally protected right, your religion and speech are protected. that is not so in france as the paper has come under fire for muslim mockery. the editor nor the cartoonists have backed down. they have stood alone in fight to show the absurdity