looking for. cheryl: august with tax reform and businesses will like it. today is february 23rd, stuart. february 23rd, sir. dagen: stuart, give us more of our money that we earned, right? stuart: i'm with you, dagen. it is february 23rd, thank you very much, indeed. hear this. it's all about tax cuts, do we get them, when do we get them, good morning, everyone. august says treasury mnuchin. he admits that it's an ambitious timetable and as he says, it could slip to later this year. the big sticking point is the border adjustment tax, republicans in the house, they want it to pay for tax cuts, many in the senate are dead set against it. mnuchin says he's talking to both side and confident there

will be a deal, investors want oopt mixthat their deal will be done. the dow set record nine highs in a row. dear, viewer, look at this, when trading begins today, we will go up some more, 30, maybe 40 points, we are close to 21,000. so here you have it. a stunning rally on the market and a dramatic shift in tax policy and what is the media concentrating on this morning? bathrooms. the present house withdrawn obama's rule that would allow transgender students to use the bathroom of their choice. that is their top story. to us the president's meeting with manufacturers is more important, to us amazon move to liquor business, to us the far c party, it's politics and money, it is not bathrooms, varney&company is about to

begin. ♪ ♪ ♪ stuart: republicans fixed on tax plan, tax plan, tax reform. you're not word about a tax cut? tax, tax, tax. tax border tax, tax, yes, we have a tax cut. yes. [laughter] stuart: it's all about taxes on this show. by the way f there's no tax reform, there's no chance of 4% growth and the trump rally takes a big hit, that's my opinion and that's why we deal about taxes all of the time. treasury secretary with maria this morning, roll tape. >> we think it's critical to getting the economic growth, we

need to make sure that the middle income gets a tax cut, we need to make sure that businesses are competitive with the rest of the world, there's trillions of dollars offshore that will come back and this will create jobs, this will create investments and we need to make sure our u.s. businesses are competitive and our timeline is we are going to try to get this done by august, i think, that's aggressive but we are focused on an aggressive timeline. stuart: did you hear that by august, the market was watching, listening as maria was doing that interview dow futures start today go up and we are now up about what 40 od points for dow industrials. bryan is with us, business and professor at the king's college in new york. bryan, the question here is the border tax. very contentious issue. you are or it or against it? >> why would you want to risk raising prices for consumers,

that's what the border tax will do. stuart: i'm going to ask you a political question? it seems to be leaning against the border tax. >> certainly in the senate and house it's mixed. you will see it move against the border adjustment tax because they see the risk to consumers and nobody in the house, nobody in the senate at tend of the day wants to make life worst for consumers. stuart: in your opinion and i would share this opinion, it's the border tax i want it guys who are going to have to back off if we are going to get -- >> it's too hard to explain to people how it's not going to hurt consumers, stuart. the president has -- stuart: they are discussing this. they are in favor. >> of course, they r it's a give away to exporters. stuart: give away? those are fighting words. [laughter] >> the border adjustment tax is

not the way to go for either of them. stuart: after all of the input about taxes, timetable for taxes and growth many the future, look at what's happening in the market this morning, 44 points at the opening bell, that's the suggestion from the future's market. we've already hit nine straight record highs. that's extraordinary. that's the longest string of consecutive record closing highs in 30 years, meanwhile, listen to this, goldman sachs, i say that the biggest name on wall street, they are warning that the trump rally maybe could end soon, they say we have nearly reached what they call maximum optimism. so does that mean that if we are on optimism, it must be down from here? >> that's what they are saying, tax reform, the impact of that will come into the economy 2018, investors a little over their skis, that's effectively the message from goldman sachs, they are saying it's from the corporate tax cut, that will boost the market. they don't expect to see that

border tax, it may not exist, it may not happen but also saying what's going to happen with taz reform delays because of obamacare reform that the president will get his feet tangled up in obamacare reform because the plans are not there. just important footnote, goldman sachs said sell stocks -- they have been wrong. stuart: look at what could be interpreted as negative news. that from goldman sachss is a negative and yet futures keep pointing higher and higher. now up 45 points. >> that's right. stuart sthaurt this -- stuart: this market wants to go up. >> we have to get to this. stuart: that's why i'm interpreting you. amazon is applying for a liquor license, what are they up to now

? ashley: a new grocery store in seattle and applied for a liquor store in this particular building. what is it? you get online and order your groceries and you go pick it up, they can get booze as well, 9,700 square feet and not a store that we think of, no shelves, purely a storage facility for goods, you drive up and they load up your car, can you walk in, yes, you can, you can walk in and you have a tablet and you say i want this, this and this, pay for it and you go into a room called the retail room and they bring it all to you. stuart: that's a different way in which we buy and pick up stuff. ashley: yes. stuart: of all kind. i think that's fascinating. next case, i'm going to call this a socialist takeover of the democrat party. according to the wall street

journal bernie sanders are taking over the party at the state and local level, grassroots level and then there's this as well, keith ellison top contender to run the democrats party machine during cnn debate ellison said there's no reason already to impeach -- there is reason already to impeach president trump. roll tape. >> donald trump has already done a number of things which legitimately raise the question of impeachment. stuart: very short bite. he's done a number of things that raise the question of impeachment. there's nothing you want more than the hard extreme left to take control of the democrat party, you think that's a total loser, don't you? >> i'm always smiling when i'm on your show. no, i do think this is a big problem for the democratic party

and mind you, stuart, even if tom pérez who was a former labor secretary wins, mother jones labored him as one of the most progressive members of president obama's cabinet. keith ellison is not the only progressive in the race for the dnc chair, they need to heed the warnings of mayor rahm emmanuel who recently said, he warned the democratic party that one, they were not going to take congress back in 2018 and also called for the party to moderate. they are more concerned about fighting what they perceive as moral victory as opposed to actually putting up candidates that can win the races and that's really what we have seen over the course of the past eight years. stuart: i think more important than the ellison, maybe the election of the dnc, more important is the takeover at the grassroots level of the party, again, the grassroots level. bernie sanders supporters have got more than half of the delegates to the state convention for the democrats in california, very big and important state, they own the party in nebraska, they own the

party in hawaii, they are making inroads everywhere, that's a grassroots movement up of socialism in america. i thought i was escaping that. >> yeah, i think what's important here are the states like nebraska because look the democratic party are going to keep being able to win the heavily blue states and the biggest policemen for the democratic party right now if you look at the numbers they are becoming this coastal party with large concentration in states like massachusetts, new york and california, but guess what, to win nationally you have to be able to win the electoral college and so they need to be competitive in these states that aren't heavily blue states and that's the policemen with the democratic party that they are facing right now. when you look at the 2018 map, they have to win -- they have ten senators running in these states where president trump won. a lot of the states are. >> red and they have to be able to remain competitive in the state so the hostile take other by the bernie sanders is less relevant in states like hawaii and california and it's more relevant if they start doing that in the states where they

have to be able to be competitive to, one, try to take back the senate, two, try to remain competitive nationally. stuart: lainl, republican lisa boothe is having a very good day. [laughter] stuart: next case, scientists have discovered seven earth-sized planets 40 light years away that may be able to support life as we know it. okay, we may be jumping the gun a fraction, look at the travel stuff. [laughter] >> no reaction just yet. [laughter] stuart: we are making a joke out of it, obviously. not because there maybe life on these planets because my great, great, great grandchildren might live there. i found that intriguing. >> and the people that annoy you may live there. stuart: you never know your luck. change the subject. those are the ceo's of manufacturing companies arriving at the white house, they are

having a meeting with president trump just in a few minutes time, they will be pushing for the border tax unless i'm very much mistaken. manufacturers want the border tax, don't they? >> exporters want the border tax, 20% on import. >> next case, action continues tomorrow big time. president trump makes a very important speech to cpac, conservative congress. you will see it here, 10:00 o'clock tomorrow morning, we will run it live guarantied. wild scenes at the dakota access site. some protestors arresting after setting fire and refuse to go follow evacuation order. get this, canadian authorities say illegal immigrants are flooding across the canadian border going into canada out of america, they say they are scared of being deported by president trump. that's what they say. next case, i said that three times already. the story of the day.

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stuart: we have a couple of name-brand companies that are going to take it on the chin today. look at this, that's l brands, the parent company of victoria secret. weak been at victoria secret and the stock is down a whopping 12%. pretty much the same story at the boston beer, the maker of sam adams, they've got a weak four cass and they -- forecast and they are down 7%. one thing that's been helping the financial stocks since the election is the promise of financial reform, getting rid of

some of the regulations on the big banks. why don't we talk to john allison, possible replacement for daniel, the guy who wrote the bank regulations, welcome to the program, john, good to see you, sir. >> good morning. stuart: i'm saying that you may be on the federal reserve, you may be replacing daniel and i'm assuming that you would want to get rid of those banking regulations, is that accurate? >> it's certainly accurate that if i had the authority i would get rid of most regulations that have been imposed since dodd-frank and a lot that weren't specifically relate today dodd-frank that the regulators are simply arbitrarily tightening lending standards that have big impact on small business growth rates and job creation by small businesses. stuart: does that mean that it's

pretty sure that we are going to get an end to those onerous regulations, can you say that? >> i think that's very probable. because the regulations have been destructive and, i think, president trump will recommend somebody that wants to roll back the extreme handedness from the fed that's been bad for the economy. stuart: i know a few community bankers. they tell me that dodd-frank, the banking regulation, that was just awful for community banks, the really big banks could handle it because they have enough fire power and lawyers to handle it but the community banks took it on the chin. i take it if we did get rid of those details, rules, the community banks and smaller regional banks would look pretty good? >> absolutely. there's been very few new banks created since dodd-frank and many merged away. the big banks achieved

regulatory, the top five or six banks, in fact, i it it testified to congress for the reform act and guess who was fight to go get rid of large banks, dodd-frank, the democrats. stuart: it is the world turned upside down and that's a fact. one last one. our production team, three members of it have had real trouble getting a mortgage, they have good jobs and they've got the money and they are real trouble with the paperwork getting a mortgage. if we repeal dodd frank or change the rules, would they have an easier time getting that mortgage? >> absolutely. the cfpb which is part of dodd-frank has been disruptive and what they've done is ironic because they set standards that are low in terms of debt service to income, simultaneously they radically tightened the paperwork so if a bank makes a loan and they dotted i and

crossed the t, then they borrow enormous increase in the paperwork to get mortgages and the average consumer has no idea what's going on. it's very destructive. stuart: john allison, if i had a vote to put you in the federal reserve to replace daniel, you would have my vote and a lot of our viewers, it's a pleasure to have you on the show, you come back, thank you, sir. >> thank you very much, have a great day. stuart: how about this, audi using the floods in california to beat up on bmw, is that poor taste or is that really good publicity? we will explain it all in a moment.

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stuart: audi plows through bmw stock. >> i think it's kind of funny, if there were serious issues with this particular flood maybe it's bad taste. i'm not sure that's the case with this one. >> that audi probably stalled because the battery got wet. that's what happens when you drive a car through a flood like that. stuart: have you ever heard of fake news? [laughter] stuart: you don't think they should do that, do you? ashley: i see the humor. i think it's funny but at the same time is -- stuart: he looks at me and laugh. ashley: i do that every day. stuart: amazon story of the day. applying for liquor license, sign that they could be getting ready to take on the super markets, hey, you think? the dow industrials will open 50

odd points, nine records in a row, heading higher in the opening bell, what's going to stop this trump rally. we will be right back

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stuart: 20 seconds from now you're going to see something

that's amazing at least to me. we've had nine consecutive record high closes for dow jones industrial average and when we open, now in nine seconds, we are going to be up maybe another 50 points. that will mean we are closing in on 21,000, how about that? it is 9:30 this thursday morning, we are up and running. i see a great deal of green on the left-hand side of the screen. we are up 42 points, we are at 20,817. who would have thought? i mean, who would have thought? we are up $3 trillion in value just since the election. 3trillion with a t. i have to mention amazon, it's applied for a liquor license, we will have more on that shortly but that stock -- i think that's a new high. 856 is certainly very close. big loser l brands, it's getting hit with weakness in victoria secret business and opened 12% down. big moves, big day.

joining us ashley webster, liz mcdonald, a full screen. goldman sachs warning that the trump rally could soon end that we have nearly reached maximum optimism. that sounds to me like a negative for market and the market is ignoring it. >> i think the market is going to keep ignoring it for a while. i have a target of 21,860. that's due to technical analysis and fundamental analysis of what's going on. after optimism peaks you get follow-through effects. we have lots of upside room here. stuart: you are looking for a thousand points. >> 5 more percent. stuart: how many weeks? [laughter] >> one of the keys to forecasting never give -- [laughter] >> how convenient. stuart: scott martin, you have to come into this.

goldman sachs statement as a negative. i see concern over the border tax and whether we will get a tax cut deal as negative and yet the markets keep going on, what so you? >> i think the goldman news, stuart, is great news. i thank you, goldman sachs, when we had markets run, think the mid-2000's, the market overcooked and overdone, yes, they were right, the market ran for a couple of more years after we had the scary notions, i think this is going to propel the market higher, the more nonblefers we have in the s&p 500 fans, the more is s&p is going to go up. >> we are all jumping up on the band wagon. i have another negative, what used to be a negative headlining the wall street journal, fed eyes aggressive rate increases. why isn't that a negative? >> it's very beneath things that steve mnuchin is saying, big tax cuts coming by august, we care

more about growth than deficits, that's what markets look at, not a quarter rate hike from the fed maybe in march, maybe in june. ashley: if the economy is starting to really fire in all cylinders this is what we need from the fed. stuart: if the fed does raise rates that means the economy is stronger. >> you don't have to talk about because it's your favorite thing. [laughter] stuart: we are three minutes into the trading session. 36 points higher, we have achieved so to speak 28,700. treasury secretary told maria this morning on this network, he's talking about august for tax reform. i think that's the big plus which is helping the market. he use it is word august, get a tax cut package by august, dr, that's a plus, isn't it? >> that's absolutely a plus. that goes back to we are not thinking so much about yellen

hawkish statements last week because this doesn't do fed naval gazing it's been pushed to the back. we need to have some rate increases, a little bit inflation to help growth is going to do well across the board. everything is sort of sitting hand to glove right now. stuart: a technical point, bryan, if we get a tax bill published and passed by congress in august, that means we can act on it, that means we will get lower tax rates and we will get a faster depreciation schedule then, right? >> if they make it retro active that will make the biggest difference in 2017 but the biggest effects in 2018. we are looking ahead of 2018 for the big effect. stuart: okay, i've got. i have to turn to amazon. they have applied for liquor license. we say it all of the time, they are changing the way we shop. that's the point.

i think, opinion, amazon is the most exciting company in the world, scott martin, what do you say? >> i agree, stuart, i will say it in front of america and the world. i love amazon and everything they do. here is the concern of the drive-through grocery. i will warn them. advice to amazon, if they are serving my wife, you will need the strength of five men, so just keep in mind that there's some labor involved in doing this drive-through. stuart: do you own amazon, scott martin >> we do, we owned ma'am zone for many years because it's exciting as a tech company, software company and all the great things they are going to do in the grocery aisle as well. stuart: congratulations, you have done well with that wasn't. >> amazon has number one corporate brand around the world.

stuart: it used to be coca-cola. the stock just hit $860 per share. that is an all-time high. i'm staying on generally the retail industry, l brands down really big today, they are the victoria secret and bath and body works parent company offered weak guidance, look at that, 13% down. is this the retail ice age, lots of retailers having trouble? >> it is, stuart, those are two mall-based brands right there. victoria secret is there -- is there gross margin leader, when they get hurt, the whole company gets hurt. >> speaking as a woman shopper and i've been into victoria secret, there's no reason to go there anymore for woman. you can get cheaper products just as fine products from a tj max or a marshals. macy's had doubled the sales, now tj maxx is beating the sales

. stuart: from one woman shopper to the big board. >> 20,811. who would have thought, who would have thought a few years ago that we would have been closing in on 21,000? i would have never thought of that. apple, let's look at that. new high. backed off 6 cents. $137 a share for apple. jack in the box, cut guidance, whoa, that will take you down for that nearly 9 and a half percent down there. cheesecake factory, higher profit up 1%, weak forecast from boston beer, makers of sam adams, down nearly 6%. that's some serious movement here. higher profits of the gun maker and the company declared a dividend 44 cents a share, up but gun stokes not doing well since the election. 50 bucks on stone, fitbit, lost

money for the first time since it went public. adam shapiro, what is going on? >> problem with revenue. 7eleven million. they sold 23 million devices last year which was up over 21 million devices they sold in 2015 but not enough. they had a loss with earnings and they face increasing competition for wearable garnment, they are one of the competitors to fitbit right now. stuart: i have this app it tells me how many miles i took, how

many flights of stairs i climbed. this is my fitbit. ashley: how did you do? stuart: not good. [laughter] >> how do they monetize 23 million users, no way to monetize them? stuart: serious note from dr. >> sorry about that. stuart: tesla layed out a new plan to roll out sedan by year's end. enormous gain for tesla, up 40%, way down today, up 40% since the election, what's going on with that stock? >> just optimism, they started doing some things well and i tell you every time tesla starts to do something well on the production side, they turn right around and disappoint us again. >> i mean, their market cap is approaching ford. they have 43 billion market cap, ford has 50 billion, ford is

142 billion in annual sales and tesla 7 billion. stuart: i can't explain that. if their market value is almost as high as ford motor company and up 40% since that election, i can't explain that. ashley: it's all based on hope -- >> technology. stuart: mr. martin, i forgot your first name, tell me what's the problem? >> mr. varney, thank you. it's technology, they have the technology that's well beyond what ford has, driverless cars, batteries, those are what people are investing in for tesla, it is the car sales which aren't impressive but if the technology takes advances as it has so far -- >> they posed profits in the last quarter, hope and change the subject about this valuation. >> tesla is doing and the market

looks at tesla and says you're way ahead of what ford wants to go and that's why we are buying. [laughter] stuart: thank you, scott, bryan, dr, all three of you. thank you very much, indeed. we have a 30-point gain for the dow industrials this thursday morning and that is taking us to 20,800. how about that? that really is something, isn't it? wild scene at the dakota access pipeline, protestors arrested, set fires in camp sites, more on that coming up. live look at the white house, president trump meets with manufacturing ceo's any moment. i think this one is about the border adjustment tax, whether we get it or not. the manufacturers love it. some don't, back in a moment

stuart: we still have a near 30-point gain for the dow industrials. that means we are holding just above 20,800. to north dakota, several arrests there and some protestors set fire to their camp. this is at the dakota pipeline site. we have anything more on this? >> they set up massive infrastructure of the camp site and the law enforcement was trying to clear them out. about 300 people remaining, less than a dozen arrests, so this is just winding down of the protest. stuart: that thing is over. they are going to build it. >> yes. stuart: let's take a look at the white house, please, because right there president trump is meeting with manufacturers, i believe that this meeting with the manufacturers is really all about the border tax, manufacturers really like it because it is a help to exporters and that's what manufacturers do. scott is with us, he's the

president of the tax foundation. this is the bone of contention, isn't it? >> it sure is. stuart: the house wants border tax to get revenue in, the senate says, it ain't happening, it's not politically possible. where does the tax foundation stand on this, are you for or against it? >> this is a matter of math. you need a trillion dollars in order to lower corporate tax rate as far as the house wants to do. stuart: if you want to cut taxes for myself and corporation, you have to raise taxes elsewhere. the way they raise taxes is border tax. >> right now import are not taxed. this is a way of broadening tax in order to raise sufficient amount of money to lower to 20%. if you don't have a border tax, you need 28% tax but there's another important element to this and that it changes the incentives for companies away from incentivizing them to

invert their companies to ireland or move profits offshore. this changes that and essentially makes the u.s. a very attractive place to -- to locate your factories and ip. stuart: okay, you just suggested the nature of a compromise. if we don't have a border tax, that would mean that we have a tax cut for corporations but a less of a tax cut than we are thinking of. instead of going down to 20%, it would be like 2 -- 27% corporate tax rate. >> you have to have a much lower rate and obviously trump wants a 15% rate so that's going to require an even bigger lift in order to get there. stuart: but -- but you're ignoring politics to get a tax package through both the house and the senate, you have to do something about the border tax and that compromise that you're talking about here, that's a

possibility. >> no one has come up with a solution or alternative and it always comes back to budget math, where are you going to come up with a trillion dollars in order to lower corporate tax rate to make the united states more competitive and so far none of the senators have come up with alternative. stuart: earlier this morning steve mnuchin with maria bartiromo first thing this morning. roll tape. >> i think it takes some time. for us to have tax reform done by august is an aggressive position and we are going to get it done but we weren't ready to launch tax reform right away and we weren't ready to take on the obamacare issues. stuart: he said august. tax reform done by august. you're over the tax foundation, do you think it's possible? >> it's ambitious but possible. the best thing about it he put a date out there that makes people focus. right now the debate was all

over the place. it needed a deadline to get people to come together and air out differences and compromise. stuart: that's why the market is up, he put august, august, august. okay. i'm not asking you whether it will be done by august but is it likely? >> it's very possible. the house is moving very quickly, it's now just really up to the senate. i know that the white house is looking at all the details very quickly and they are going to come out with their own plan very soon. it's a matter of getting everybody to come together, find compromise and get this thing done. stuart: yeah, just a matter of. not easy. scott, thank you very much for being with us as usual. thank you, sir. now this, regrettably ladies and gentlemen we have sad news to pass along to you, alan combs on fox news channel and a host of fox news radio, he's passed away. alan often appeared on this program, he was battling cancer, alan colmes was 66.

stuart: i really find this interesting, there are report that is the pc business, personal computer business is bouncing back. that report is certainly helping

hewlett-packard which has just hit a 52-week high. 17 bucks. [laughter] stuart: iraqi security forces enter mosul international airport. i don't care about iraqi forces, i want to know if our guys are on the front line. ashley: there is a suggestion although very foggy with details but some close to 500 special operations unit troops are from the u.s. with the iraqi forces to try and fair it out and clear out western mosul, we have about 5,000 u.s. troops in iraq but i think some of the special operations units are with the iraqi forces. we already have u.s. planes giving air support and i think we are on the line. stuart: that's the vital component of the story, you got it. illegals crossing the border from the united states and going into canada, we hear it's in large numbers.

>> what they're doing, when they physically walk across the border they get refugee status, if they go through official check points they get turned back, that's why they are doing it. they are crossing the border, walking across because they are immediately taken up by canada. hey, knock this off. we have to shut down our border. this is making unsafe. this is not good for canadians. this is not good for us to have -- stuart: sound familiar. we heard that in america. that's not what i was hearing from canadian's prime ministers. ashley: we have our arms open wide to all people. >> criticizing the the americans when the americans have been generous. stuart: where should you have the wall -- isn't there a wall or a barrier in southern border?

we want to build a wall on border with méxico because we want to stop the flow coming north and canada, stop the flow. >> exactly. can i make one point about the southern border wall, barack obama, hillary clinton, joe biden, chuck schumer were all for the wall back in 2006. stuart: those were the days, tesla down 12 bucks, 4 and a half percent. it is certainly taking a hit. maybe it's a rebound. now a move down after 40% move up after the election but tesla very much a stock that's moving this morning. dow jones average right now up 30-odd points, we are going to be taking a very short break but that's the news this morning. it's thursday, we are coming off nine consecutive record highs for dow industrials and, yes, we are up again 20,800, that's the news. i wish the conventional media

would cover it, but they don't. next case socialists, they are taking over the democrat party, it is happening and it's happening now, my take on that three minutes away

. .

convention. they already own the party. in the nebraska and hawaii. and they're making huge inroads else where. bottom up, that is how they're organizing socialism, bottom up.

now look at it, top down. far left congressman keith ellison is a leading candidate to run the whole party. bernie wants him to chair the democrat national committee. the vote is saturday. a man who wants a trillion dollar tax increase and who wants to impeach president trump may be running the democrat party. this tilt to socialism has profound consequences. in britain, labour party activists similar to bernie sanders, installed a hard-line socialist as party leader. they play a very minor role in politics and government. it is hard to believe socialists can win an election in america but the takeover is happening. the socialists are now running the democrat show. and the third hour of "varney & company" is about to begin. second hour. ♪ ♪

♪ keep on rockin' in the free world ♪ stuart: that is neil young? ashley: yeah. stuart: keep on rockin' in the free world. i vaguely remember that. president trump meets with ceos from big manufacturing companies moments from now. ceos want that border tax. that is interesting, that is a bone of contention, right, just after 10:00 eastern thursday morning, breaking news on mortgage rates. liz: 30-year up ever slightly from the month prior, week prior. just about half a percentage point lower than it was a year ago. remember existing home sales at a 10-year high, right? stuart: we're just above 4% if you want the 30-year fixed? liz: yes. stuart: fair enough. the dow with a 34 points gain,

above 20,000hundred. weakness at victoria secret, hitting the company l brands, when i say it is taking a serious hit. down 15%, a big drop. tesla laid out an aggressive plan to role out the new model 3 sedan by end of this year. the stock is way down, down 4 1/2%. the company is burning through cash. elon musk may have to ask wall street for more. that is why it is down. look at apple please. it was at 137 few moments ago. that is all-time high. it backed off a fraction but that's apple. but now this, i want to get back to my take at top of the hour. i say democrats are realing from the election and socialists are about to take over the party if they haven't done so already. listen keith ellison during a cnn debate last night. he is calling for president trump's impeachment. >> i think, he, donald trump has

done a number of things which legitimately raise the question of impeachment. stuart: now he wants to be the next chair of the democrat national committee. he wants to run the party apparatus, and he thinks it is about time we impeach the president into month two of his presidency. a.b. stoddard with us, "real clear politics" associate editor. what do you think, ab? i say, i'm coming on strong. i'm saying the socialists are taking over the democrat party from the inside and from top down. have i got it wrong? >> well i'm not going to call them all socialists. socialist bernie sanders is endorsed keith ellison's run for dnc chair and bank haters like elizabeth warren are behind him as well. senator schummer, minority leader of the senate, is behind him. he has a lot of big-name support. that said he has a lot of other problems. he, as you know has said nice things about louis farrakhan. he got in trouble with jewish

democrats near and dear to the party. so i think he, i don't think this is going to be an easy win for him. the way it has been explained to me, these are, you know, campaigns you have to win across 50 states from state party chairs and their committees. it is not exactly something that you win with senate endorsements. that might have changed but certainly they don't have a lot of heavy hitters, stuart, who look poised to bring the party back from the depth can. stuart: i'm surprised the center of the party, which used to run the party, doesn't seem like it is in existence any longer. i don't hear from centrist democrats who want to forge pack from our economy and growth in their electorate. >> this is the election in the republican party as well. moderate republicans also disappeared. if you look in the congress, same with the democrats. it is true i wrote in november on the 21st of november actually that the party should

dump pelosi as house leader and abandon ellison for dnc chair. no one is listening to me, but as you remember congressman tim ryan from ohio is running to challenge leader pelosi on the basis that after the election democrats had to take a long, hard look at the fact that they didn't balance their message about social tolerance and inclusion an civil rights with one of economic fairness. and that is why trump won, many reasons also having to do with hillary clinton's disasterous candidacy but in general the party was really griping about things that didn't have a lot to do with stagnant wages and income inequality. so that is really a problem for the party going forward. if they want to keep losing the rust belt they need to broaden their horizons. stuart: i'm not sure they can do well in 2018 if they keep edging towards the left. a. about, stay there for a second. i have another subject later in the block. listen to what president obama, president obama said about creating one million manufacturing jobs.

now this is five years ago, just listen. >> we can help big factories and small businesses double their exports and if we choose this path, we can create a million new manufacturing jobs in the next four years. you can make that happen. you can choose that future. stuart: i repeat, that was 2012, a million new jobs in next four years. how many did he he actually create? ashley: not even close. according to the bureau of labor statistics, i have a trouble with that word, statistics 303,000 manufacturing jobs were lost since president obama took office in 2009. as for doubling american exports, not even close. stuart: wait a second he wanted to create, he said we could create a million, a million new manufacture jobs. but with we lost 300,000, that is accurate. ashley: correct. stuart: bureau -- ashley: bureau of labor statistics. stuart: that is not some pressure group. ashley: no, legit.

liz: you can do that. you can create the jobs. never mind d.c. policies. stuart: mark serrano, deputy campaign director for george h.w. bush. good to see you again. >> good morning, stuart. stuart: the president is right now meeting with manufacturing ceos. this is all about creating jobs in the manufacturing sector and those manufacturers i do believe, they want the border tax. this is a huge bone of contention. are you for the border tax? >> no, i'm not for the border tax, stuart. but really depends which ceo you speak to. if you talk to a walmart ceo, such as doug mcmillan, he is a net importer of products into the united states. so naturally he will oppose a border tax. it is going to be a split really among ceos depending whether they're net importers or net exporters whether they want a border tax. stuart: what about the politics. the house wants the border tax. the senate says no way.

where will they compromise? any idea? >> paul ryan wants a border tax. that doesn't mean he will get it. donald trump will put first priorities first. i think we're contemplating a issues here. in terms of trade donald trump will act unilaterally in trade imbalances. in tax reform he will act universally. donald trump puts first priorities first. dealing with tax reform at the corporate level bringing them down to 15 or 20% first. everyone will agree on that. stuart: that is very important. i think you're right. i don't think the border tax will get in the way of a overall tax reform program. that is what i think. that is my opinion. now -- >> ceos are there out of self-interest. they want tax reform and regulatory rollbacks too. stuart: all you hear about in the media these days is transgender bathrooms. i mean we've got extraordinary news on the stock market, record highs all over the place, extraordinary news on tax reform. we may have a whole new tax code

this year. yet the mainstream media is droning on about bathrooms. what do you make of this, mark? >> that is because the democrats and media have been san dersizeed. they're bought and paid for by the alt left at this point. what is remarkable about this transgender issue. trump through, who many of them claim is fascist and grabbing power, has actually returned power back to the states, that barack obama never should have claimed in the first place for the federal government. stuart: i just don't get it. how on earth bathrooms trump so to speak -- >> nothing about individual rights. he is returning the issue where it belongs, back with the individual states, as many issues should in a federal government. stuart: fair point. mark serrano. thank you very much indeed, sir. appreciate it. >> thank you, stuart. stuart: i want everyone to check out the cover from the "new york post." scientists at nasa have discovered seven

earth-like planets. some may support life the way we know life. it is however, 40 light years away. the headline is, want to get away? interesting animation there about this. a.b. stoddard, please come back in again. [laughter] do you think that this, are you excited by the story of the seven planets? >> i am excited. i think it is always good to know that we know very little. and actually trying to read the coverage of it, stuart, i had to keep a dictionary near me. i cover politics. i don't have the bandwidth for this. i didn't do well in science but learned a lot of cool stuff. i know the sun, the star, excuse me that these planets are orbiting around is something called a cool red dwarf. and i also learned, i studied hard for this, i want you to know, compared to our sun it would be a golf ball, the star they're orbiting around. it is cooler, which means it

could have oceans but our sun would be the size of a basketball, not necessarily the same as the star they're orbiting around. so this is, this is what i studied for you. i find it exciting but also very confusing. stuart: this is absolutely astonishing that you would go so far out on a limb be to study up on the planets. you knew i would ask you this question obviously? >> i didn't want to be caught flat-footed and talk about marco rubio. topic of the day, seven new planets of course it is exciting. stuart: big smile too. not bad, ab, thanks for joining us. thank you very much. >> thanks. stuart: now this, the winning powerball ticket $435 million. sold in indiana, at a gas station, lafayette, to be precise. if you're in lafayette indiana, check out the winning numbers. two people in massachusetts also winning a million dollars each. i don't know how that happened. the big payout is in indiana.

ad-lib the white house it says. ashley: there is the white house. stuart: the white house. president is meeting manufacturers inside of that building as we speak. again, i think this meeting is all about the border tax but when those manufacturers emerge, maybe we'll find out more. back in a moment. ♪ hey gary, what are you doing? oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade.

stuart: when treasury secretary steve mnuchin said the tax-cut package will be here by august, the dow went up. goldman sachs says the maximum optimism has already been reached on the stocks market. my question to you, liz, does that mean goldman sachs things the next leg is down? liz: it's a bearish call. footnote, they were bearish back

in july and s&p went up up 16%. they think the white house will get entertaining gelled in obamacare first and cause tax reform delays. if tax reform does happen, impact to the economy, 28 teen down the road. stuart: that is their hedge, goldman sachs. liz: that's correct. stuart: doesn't seem to be working this morning. you do is up 10 point. now this, our next guest says we can cut down violent in inner cities by arming people and educating them about guns. we have a the black guns matter found ir. good to see you sir. >> appreciate you having me. stuart: have i got this right, your way of cutting down on having young black men kill other black men is to give some black men more guns? i'm sort of phrasing it in a strange way, but is that the gist of what you're on? >> you kind of on to it but more

so than just giving people, young urban people of all races firearms, giving them more education about second amendment rights. giving them more education about conflict resolution and de-escalation tactics. that is completely missing in urban areas the city of chicago. stuart: this is an argument that more guns would lessen the violence. that is essentially the argument, isn't it? and education to go were it, i got that but at the center of it, more guns owned by more people reduce crime, that is the argument? >> yeah. yes. the argument to a certain extent could be that but more so than just the gun, a gun is just a tool. it is the person behind the gun. you have to have a safe, responsible, respect for the tool, understanding individual, but, yes, more armed -- not sound cheesy, but a armed society is a polite society. we see it in states like new hampshire, very low firearm crimes, became constitutional carry yesterday. yes, more, trained, educated

people about firearms and their second amendment with respect for that tool, definitely would hamstring a lot of this foolishness. stuart: now we just had, had a video of you standing in front of a crowd there, explaining your program. i believe that is what you're doing. what kind of reception did you get from this? >> we get an amazing reception from the people in these urban communities. we get an amazing reception from law enforcement who traditionally, people wouldn't expect to say, hey, law enforcement guys are saying hay you should have more firearms. because of the way we're doing it, dealing with conflict resolution, de-escalation, training, safe, responsible gun ownership, dealing with teaching young people, if you see a firearm what to do and what not to do. we're getting an amazing reception from all, across the country, most of the states that we've been in. and it is beautiful. i couldn't ask for anything better. stuart: you are saying, the exact opposite so many people say in our nation's major cities, especially chicago where

they have intensely strict gun control legislation, same as d.c. you're saying the opposite? >> i'm saying the opposite because the facts of the matter are it is not working. if the things they were trying, mr. emanuel over there in chicago, yesterday they had the most deadliest night, 24 hours, deadliest night. they have all the laws on the law books. the criminals, bad guys don't care about the laws. you're hamstringing good citizens from defending themselves or even be a deterrent. if the things that people were saying instead of being outside and supporting organizations like black guns matter, if what they were saying actually worked chicago would be safest place on earth and it is not. what they're doing is outdated philosophy. time to try something different like we're doing. stuart: you sir, are a disruptor. you're very welcome on this program, i'm intrigued by your point of view. i am glad you got a chance to express it in front after wide audience. come back soon. we appreciate you being here. >> absolutely.

glad to be here. stuart: that was fascinating. that is different and i like it. ashley: yes. stuart: picture this, a man speeding down a highway, the cops stop him to find out he is illegal immigrant hacked two people to death allegedly with a machete. we have the story coming up. look at the white house. inside the building right now manufacturers meeting with president trump. it is all about a border tax. ♪

stuart: "the washington post" is denying its new slogan is

inspired, as sort of an anti-trump thing. what is the slogan? ashley: on its website, "democracy dies in darkness" are you having a go at donald trump because of his criticism. media? they say no. jeff bezos owns "the washington post" and founded amazon, i used that phrase last year when i was being interviewed. i think it's a great, great phrase. but there are those say what about independent newspapers, do they die in the dark as well? anyway. stuart: controversy, i'm not surprised. a couple stocks in the news. this one is down. it's boston beer. they make sam adams. they are down about nearly 3% there. weak demand i believe is the problem. the personal computer business though, that is reportedly bouncing back. that is a new trend to me. that is helping hewlett-packard. they make them. and that stock has just hit a 52-week high with a 7% gain. who would have thought? then there is this. an illegal immigrant caught smuggling thousands of dollars

worth of meth per month. story police? liz: maria concepcion she was caught in florida. violent illegals working system. deported after convicted served three years. comes bake five years later. joins a 25-member drug gang in control. dealing crystal meth all throughout the south into california. what happened she went on food stamps as did 11 other members of the 25-member gang went on food stamps. they were collected $900 a month making money producing crystal meth. she is serving again three years prison. ashley: we pay for that. stuart: she was netting tens of thousands of dollars a month profits. liz: collecting $70,000 a month and collecting food stamps. the obama administration said we want to release drug convicted offenders. you have to wonder what was the catch-and-release operation here?

she was illegal immigrant. deported. came back in. stuart: we have another story about an illegal, this illegal allegedly, hacked two people to death. and, he is in america. ashley: yeah, 56-year-old francisco escobar aria in. a he was arrested this week in north carolina. he is wanted on an arrest warrant in honduras for hacking to, suspected of hacking death of two people inside a liquor store. he came here illegally not long after the crime. what is more galling in this story, he was actually arrested in 2011 in north carolina for drunk driving, and was released. no explanation given how on earth he got out. why wasn't someone contacted. this guy has arrest warrant out from honduras for a double murder involving a machete. now he is in custody, thankfully. been 24 years since the crime down in honduras. stuart: we have a meeting of manufacturers and president trump in the white house.

we're waiting to get coverage of that meeting. we generally get a camera inside and the president makes a couple of remarks. we hope to have the tape for you, just momentarily. the dow is holding on to a small gain. 14 point to be precise, 15 points, just shy now of 20,800. we'll be back. ♪ great panther silver produced approximately 4 million ounces of silver last year at their 2 mexican mines. their recent mine acquisition in peru, once fully operational, stands to increase their production up to 75 percent. great panther silver

♪ stuart: that is the rolling stones, i do declare. ashley: can't get any satisfaction.

stuart: playing, i can't get no satisfaction. why we're looking at white house i'm not quite sure about that but that is the music we're playing. there is a meeting being held in there between the president and senior manufacturing industry executives. i believe we have some idea of what they have been saying. do we have that? ashley: splitting up into groups. tacks and trade being one. they were discussing the border adjustment tax for a while. we haven't had any details out of that. what is interesting -- stuart: they were discussing it? ashley: they were discussing it. there is also, they are splitting into groups and having a roundtable on future workforce and the need for more technical skills and the need for apprentice programs this is something germany is successful, skilled high schoolers, not going into college but actually learning a trade. this is something these people have been talking about. liz: to ashley's point -- stuart: okay, look, that is nice, rah-rah stuff. that meeting, the contentious item is the border tax.

liz: it is. stuart: manufacturers want it and republicans want it and the senate doesn't. it is holding up tax reform. liz: what the president needs and wants is high-paying manufacturing jobs to stay here because reuters is out with the story five of the companies at this meeting, they have basically outsourced thousands of jobs. that would be caterpillar and ge and the like. but it is a wide-ranging discussion. they're talking about the permitting process taking years to get factory permits. ashley: infrastructure. liz: infrastructure. regulation costing a 1/5 of -- stuart: i had that, i understand entirely, it is all good stuff, i got it. but let's bring in sarah huckabee sanders, white house spokesperson. sarah, this meeting i think is all about the border tax proposal, isn't it? the manufacturers want it, they are pushing for it. i'm right, aren't i? >> i never argue with you on your own show but what this is really about you have a president whos priorities he talked about on

the campaign trail we're he seeing a lot happen in this first month in office is a major focus on jobs and the economy. he is a businessman. he knows about creating jobs. these are people that do exactly that. he wants to find new ways to get regulations out of the way so we can build our economy, make it stronger, create more jobs and these are the exact type of people that could help do that. stuart: if we don't get an agreement on a border tax, of some sort, have it or don't have it, we will not have a tax package ready by august. that will be a grave disappointment for the stock market. can you give us any information at all about the discussion surrounding a border tax? >> look i don't want to get ahead of this meeting that is going to take place here starting in just a few minutes with the president but i know that we'll provide some information and how that conversation goes. but look, we've got a president who makes deals, makes things happen. i predict that this is going to be a very productive meeting and

we come out with, a lot of agreement on this issue. stuart: okay. rex tillerson, secretary of state, and john kelly, they're both in mexico. they received something of a frosty he reception. the irseems to be. the issue when illegal immigrants coming into america are caught we want to repatriate them all to mexico, whether they're mexican nationals or not. that is a bone of contention, isn't it? >> this trip is a very big moment for us. it shows the priority that this administration has in working with the mexican government. this is one of the first big trips we've taken. we have two of our top people in place in this country, talking to their leadership, showing what an important process this is. that is what this trip is about. we had a great meeting a month ago. we're building on that. our president has made no secret what his priorities are. he has been talk about it for the last two years.

that hasn't changed. we'll continue building on the relationship. continue having these conversations and continue trying to figure out the best ways to work together. but this president will not compromise on some of the policies he promised. his number one job is protecting this country, protecting our citizens. that will be his focus. and he is not going to back down from that. stuart: i'm hearing whispers of a deal, a deal as follows. mexico will take back everybody that we catch on the border, whether they're mexicans or not, in return, we fix their oil industry, which is in chronic decline. any comment? >> look, i can't get into any specifics on any type of deal but you i think we've got the best team possible working on this from secretary kelly and tillerson, and of course the president himself leading this effort. and i think some great things are going to come out not only this meeting but things to come in our relationship with mexico. stuart: sarah, i always press hard and you always come through for us. we appreciate that. sarah huckabee sanders, thanks

for joining us ma'am. appreciate it as always. >> always a pleasure. stuart: totally different subject. as we're waiting for the manufacturers and some news out of that meeting, as we're waiting for that, i will turn to very difficult but very different story. the opioid epidemic in america. bob beckel was on this program yesterday and he spoke very candidly bit on our program. listen to this. >> opioids are everywhere. none of these guys will ever come back to work. sell the pharmaceutical stocks poisoning this country. particularly the people that make oxycontin they ought to be in jail. >> new hampshire main streets -- stuart: massachusetts same story there. >> it will only get worse. rehab the people get them back in the workforce. you hope they don't have to bury them. i watched people who never drank, never smoke, suburban, people come into pain centers, addicted to opiates because they had a back operation.

stuart: that is bob beckel. scott brown, former senator from massachusetts. massachusetts, opioid deaths at an all-time high, is there anything that the state, as opposed to the feds, can the state do about it? >> well first of all, i know bob, i have spoken to him about his situations, i don't disagree with him at all. you have situations where doctors are overprescribing. i went in for a simple operation. they said, you want oxy, want this? no, i'm not even in pain. so we have to stop that, curtail that. massachusetts new hampshire, obviously vermont epicenter what is happening here. everybody has task forces and looking for that public/private partnership to work with the feds as well not only get fed support, state support and local city and town support and individual non-profit support. all hands on deck. all tools in the tool box, because you're right, stuart, it is an epidemic in. what is happening, a lot of people did take drugs. gotten clean and fall off the wagon a little bit.

they take the drugs because of fentanyl in there, it is immediate, immediate death sentence. that is whole different potency. and they're not used to it. stuart: all hands on deck, every tool available. you have treatment programs presumably get people off it, if you can. not always very successful. and you could maybe raise the penalties for dealing the stuff or raise penal on a doctor who overprescribes. what, what's it going to be. is it going to be punishment or treatment? what is the thrust of the program here? >> well you referenced the massachusetts. they're increasing beds. there is a bed shortage in many states to get people real treatment. you have to obviously start, at i believe through the d.a.r.e. programs and other programs in the local schools. tough start young and let people know. it will be law enforcement. you have some situations also with the new military courts and the like where people are

saying, boy, this guy has ptsd. so they're recognizing there is some history with a lot of the drug use and they're being a little bit more lenient, not automatically bang you go to jail. don't collect $200, et cetera. so actually have different approaches with the non-profit groups especially working with the state agencies. they get it. i know governor baker obviously, governor sununu here in new hampshire are working very, very hard to try to address this. but it will be a little give-and-take on both, stuart. stuart: before we close, scott, i want to inject a personal note. i am very familiar with massachusetts, and in particular, i have seen babies born addicted to opiates. their mothers were addicted. it's a terrible sight. i'm sure you have enzoo the same thing. >> tragic. stuart: absolutely awful. all hands on deck to do something. scott brown, thank you very much, sir, appreciate it. i want to bring in dr. marc siegel, fox news medical correspondent.

bob beckel on the program blames the drugmaker. some people blame doctors overprescribing this stuff. you're a doctor, i'm not accusing you, but do doctors share some of the blame here? >> we play a role, doctors play a role. it is by the way prescription, stuart. stuart: what is that. >> on the way out the door, already on to the next patient, working on computer, by the way, the patient says can you refill my percocet and refill my vicodin. it is getting harder. in new york city state you have to go to a website. there are limiting steps. not enough. 200% increase in opioid deaths since 2000 alone. 66% of patients die the overdoses saw the doctor recently. here is another interesting thing, mental health issues abound on people who get addicted to opiates. you know what, dentists are playing a role. in a lot of pain after a dental procedure, bam, get a vicodin prescription. back operation as bob beckel said, you get opioid

prescription. once you're addicted, they cut you off. sorry be no more, what do you do, you go to the brown-bag on corner. that is were the heroin comes in. president trump's point about the borders. leaks over from the borders. doctors play a role, prescribing percocet. we don't do it anymore. get it on the brown-bag. stuart: is there any pain kill they're works not ad dib tiff. >> yes. stuart: why don't they prescribe that. >> a lot of things you can do like physical therapy. stuart: wait. if there is painkiller that kills pain and it is not addictive, why isn't prescribed? >> two reasons. patients are pushing us and two, it is easier for us. i am indicting doctors here. it is too easy. dea clammed down. state are clamping down. not enough. too easy for the doctors to write. stuart: tell me the name of a painkiller which kills pain which is not addictive, tell me? >> give me one example. stuart: yes, sir, please. >> one example. a lot of time the pain is really muscular.

it is too easy to give mark tick. you should give muscle relaxant like xanoflex. valium. heat works. physical therapy works. a lot of time we jump to percocet and vicodin we shouldn't. a lot of time the pain is must civil spasm. we misdiagnose it. send the patient to back specialist. instead of saying send the patient to pain specialist which is with a lot of medical correspondents would say. i don't like that. a lot of pain specialists are overprescribing vicodin and perko sets. stuart: we have not a solution yet, we're not even close are we? >> a billion dollars in the 21st century cures act a billion dollars. stuart: what would that do. >> that is just money. stuart: what would it do? >> we need to educate physicians not to prescribe these drugs. that is what we're doing now. stuart: why don't you put them in jail?

>> i bet if you threatened with licensure. stuart: why don't do you do that. i know massachusetts absolutely well. it is an awful thing. >> i'm not disagreeing with you. i want to see harsher laws for overprescribing these drugs and i want these physicians responsely. stuart: i will settle down. >> i agree with you. stuart: i want to see a painkiller that works not addictive. >> muscle relaxants. stuart: does that really kill pain? >> if the pain is due to muscle spasm we're -- stuart: wait, look. i'm not interested in this. if i have a dental procedure and i'm in real pain, it is definitely not muscle problem. it is is not a muscle spasm, wht have you got that cures my pain that is not addictive. >> i could start with perk set, oxycodone for few days and transfer to advil, motrin. nonsteroidal.

i don't have to give you long prescriptions and keep refilling them. here is the word, we doctors are enablers, enablers. stuart: i don't mean to be hard on you. i'm hard on the problem. i would like to see something done. siegel, i like you. >> i'm not an enabler. stuart: no you're not. on the left-hand side of the screen you see senior ceos of the manufacturing companies. they're holding a meeting with president trump. that is happening as of right now. at some point a little later in the program we'll hear from president trump himself. you usually get his comment as the meeting opens up. occasionally some of the participants will come out of the white house and address the cameras and we hear something. ashley: vice president mike pence stuck his head around the corner in the room with these titans of industry. we have a three-part again can today, ladies and gentlemens, jobs, jobs, jobs.

we're splitting you up into smaller groups because we believe smaller groups are better to get things done. that was his message. stuart: fair should have. matt che, retail industry federation. national retail federation, i do apologize, matt. >> thank you, stuart. stuart: retailers, i'm talking about a border tax here, i think that is the subtext of meeting with manufacturers. it was certainly on the cards when the retailers met president trump about a week or two weeks ago. retailers hate the border tax. manufacturers want the border tax. who is going to win? >> well i think lots of us should hate the border tax, because if you're a consumer or taxpayer you will pay more for everything you buy. we should all hate it and should all recognize it is not only way to solve the tax reform problem. there are many other roads we could go down. this is one we don't agree with. if you look at coalition we put together, 200 companies, industry groups, organizations,

coalition they put on the other side, overwhelming number of organizations to talk about the issue, on the other side opposing it. it is bad for consumers and bad for taxpayers and increase pricing for everything important in this country. whether you're talking about the things we sell, petroleum, alls, electronics drugs, virtually everything you buy will cost more. stuart: you have assembled a very powerful lobbying coalition. you have partners there who can really lobby hard in congress and i take it that's what you're doing. so my question is, do you think you have the political clout, the lobbying clout to stop the border tax? >> stuart, you reference admin ago a visit a number of retail ceos had with the president last week and other members of the leadership as well as on capitol hill. this is a process, we've got a lot in common with the folks up there today. we all want tax reform. it is good for the economy. it is good for consumers. it is good for business.

it will drive investment. we have a difference of opinion how we get there. ultimately we have to stay together on this, be part of the conversation, work together with the leadership, speaker, chairman brady and opposite numbers in the senate. stuart: matt, but you're avoiding the question. he my question was you're a powerful group. have you got the clout to beat it? >> we have the opportunity to have a direct conversation to continue to talk about why this is the wrong approach. stuart: if it is any help giving me towards an answer, i'm hearing whispers that border tax is not going to make it. that is what is going to be dropped. will you answer the question, have you the clout to beat it? >> we're talking about every consumer in this country. we're talking about 42 million jobs in retail. talking about millions and millions of consumers that shop every day. i was with a retail ceo this week. 30 million families visit his store.

i was with one last friday. 40 million visit his stores last week. one voice is credible, very influential and very informed how this will affect them. as long as we focus on what is good for consumers, what is good for the economy we can find a path forward. this particular proposal is not the best way forward and we hope as we go through the discussion with the leadership, house, senate, president, secretary mnuchin we'll find a path that works for all of us. stuart: i am told retailers if this was a border tax, 20%, if that happens it would wipe out profit for some of the retailers in the room with the president? >> that is very accurate. for many publicly-traded companies that is straightforward exercise. you can get their p&l. they are publicly-traded companies. if they no longer conduct imports in near base. they have a 5-dollar profit now, if you doesn't get die

duckability for cost of goods sold, you will pay 10 times more in taxes and wipe out all the profits and there go all those jobs. stuart: i hear retailers do pay a very high rate of tax, corporate tax, very high rate indeed. you guys are often paying above 30%. >> that's right. stuart: president trump proposes to get rid of much of that tax burden, doesn't that balance out? you pay more for imports but pay less profits tax? >> you pay less profits tax, paying for your own tax reform in cost of much higher goods sold. if you end up with no profit at all and end up paying much higher taxes than the current profitability you end up not making a very good deal. the way it works out, a number of ceos took the time to really walk the president and his team and members of congress through this, line by line. here is what our business looks like. here is how we operate. if this gets imposed, here is the result, you can do the math. and math is not very pretty. so i think that is the

conversation that has to keep happening because this is, the president said last month, this is complicated, it's confusing. border adjustment is something that no other country does, no one border adjust as a corporate income tax. there are value-added taxes. i know how you feel about a vat. those countries border adjust vat. nobody adjusts the corporate income tax. it is confusing. we're conflating a number of different issues. we need to stop, slow down, get everyone in the room to have a real serious conversation about the best way forward. stuart: by i remember the v-a-t, the value-added tax. >> i thought so. stuart: it was introduced in the britain in the 1970s. it was assumed, okay you play this value-added tax on stuff you consume, that will let us get rid of income taxes. that really did not happen. dream on, sports fans. matt shea. stuart: thanks very much for joining us. >> my pleasure, stuart, thank

you. stuart: we're still waiting for the president to come into the meeting. we've had their individual group sessions as you said, ashley. ashley: tax, trade, infrastructure and so on. the vice president saying we think putting smaller groups together is more efficient because it gets things done more quicker. border adjustment tax is a biggie as we've been talking about this morning. there are other issues here. you have got ge, you've got dow chemical. stuart: they're all in there. scott brown, you're still with us, i believe, are you for or against a border tax? >> i'm against it, stuart. if you lower corporate tax, streamline regulation and get rid of obamacare, which is also a tax reduction, for businesses and individuals, there will be no need for a border tax because, number one, i know they want to offset it but it is our money. stuart: okay. >> i love it when the government says we need to offset all these things. it is our money. they need to cut fraud, waste

and abuse. streamline government. need to find other ways to do this. think you get a pay-for, i agree with steve forbes, i think it's a stupid proposition. stuart: i'm hearing whispers the border tax is going to go. if you really want to get tax reform generally through, the border tax is one thing has to go. liz: speaker paul ryan given emphatic full-throated endorsement of it in kevin brady in the house. split fight in the house. the house is fighting over it. they like it, want it. republicans in the house. senators really don't want it. walmart hates it. big retailers are saying no, don't do it. quite a fight going on right now. stuart: it's a battle royale. that is what it is. >> stuart? stuart: go ahead, scott. >> stuart, when you put in a border tax, right now at x. but what happens when you have a democratic house, senate and president? that x will be x plus, plus, plus. ashley: yeah. >> at what point it stops?

once you put it in you never get rid of it. i never voted for a tax increase in my life. they have to find another way to do it because that is stupid idea. stuart: you're right about it. when the vat went in first in britain, i can't remember the level it went in at, but you're right, scott, up it went. they couldn't resist the temptation raising money so easily raising the vat a couple%. ashley: 20%. stuart: my colleague ashley, it is 20% in britain. that is consumption tax. almost like a national sales tax. liz: the vat is prime example how the tax system makes more liars out of the system than a game of golf. there is so much complexity. we've seen it throughout europe. big elephant in the room are the koch brothers. the koch brothers hate the border tax. they own oil refineries. they own companies that make consumer products. that, if that border tax is passed they're saying gas taxes go up too.

stuart: gas taxes go up. it's a consumption tax. scott, i will bring you back in for a second here. i would rather have a consumption tax, in other words, what i spend my money on is taxed. if i buy something it is taxed. i would rather have that than have them tax my income, you know, wouldn't you? >> yeah, absolutely, stuart. i'm not opposed to it. i was a traditional tax person back in the day. things have changed. i'm almost leaning more towards even a flat tax situation, eliminating deductions, eliminating a lot of so-called corporate and individual loopholes. just give a flat tax and consumption tax as you referenced. makes a lot of sense. you want to use it, pay for it. no big deal. liz: what a fight we're having. we're having corporate giants of america splitting up. we've got boeing, ge, exporters, they like it. on the other side you have walmart, target, the koch brothers saying don't do it. you're right, it is a battle

royale with the corporate titans lining up on either side of the big fight unfolding. >> that vat i was interested to see, came in 1973 in the uk at 10%. stuart: 10%. now 20%. ashley: doubled. hasn't gone away and doubled. stuart: left-hand side of the screen, major personalities of the administration. that is steve bannon. elaine chao, the transportation secretary. i believe steve mnuchin is over to the white house. he is part of this meeting with the manufacturers. earlier today, steve mnuchin on fox business network with maria said used word, august, before, august geoff congress goes into recess. steve mnuchin said august, we'll have a tax plan in front of you. that is a very aggressive schedule. that is a very aggressive schedule. market is down two point, a

fraction lower for the dow industrials. this is really all about this consumption tax, this border tax. liz: yeah. stuart: argument, huge fight, point it out well, this is huge fight. what are we going to tax. are we going to tax -- ashley: between importers and exporters. stuart: yes. liz: it's a political fight a number of important senate seats could flip in 2018 in the midterms. the koch brotherses are sayingig to the vast network, you tell your congressman you want to raise prices $1.2 trillion on consumers? how will you justify that, say, yes, reelect me? stuart: scott brown, sorry the president walked into the room. i'm sure he will make a speech at some point. scott brown, paul ryan, speaker ryan, his argument is that we must have a border tax because that will pay for tax cuts to individuals and corporations. in other words we don't run up the deficit if we cut income

taxes and corporate taxes if we have the border tax. what do you make of that argument. >> i disagree. i think you can find other pay-fors and i think it will be a combination approach where you will have some deficit spending. some of those tax breaks will not be paid for. once again, stuart, it is our money. i love it, we can't give you a tax break because we have to find a way to pay for it. give me my money back. i will spend more. ultimately you will get the in the back end. stuart: okay. scott hold on a second. >> they don't want to give us our money is ridiculous. stuart: the president is just beginning to his remarks. we'll cut to him right now. >> all of our wonderful magazines and business magazines in particular. so it is an honor to have you with us today. bringing in manufacturing back it america, creating high-wage jobs, was one of our campaign promises and themes and it resonated with everybody. it was really something what happened.

states that hadn't been won many, many years, they came over into our fold. a lot of it had to do with the jobs and other reasons but the jobs. i'm delivering on everything that we've said. in fact, people are saying they have never seen so much happen in 30 days of a presidency of the we've delivered on a lot. i think narcan explain and narcan -- united states lost 1/f our manufacturing jobs since nafta. that is 0 million factories joined since china joined the w it. o. 70,000 factories. and i used to talk about, i thought it was a typo. i tell wilbur, that can't be right. think of it, 70,000 factories. what are we doing?

my administration's policies and regulatory reform, tax reform, trade policies, will return significant manufacturing jobs to our country. everything's going to be based on bringing our jobs back, the good jobs, the real jobs. they have left, and they're coming back. they have to come back. you've already seen companies such as intel, ford. mark has been great. gm, walmart, amgen, amazon, fiat, they, the other day they will make a tremendous investment in the country. carrier and others announced significant investments into the united states. ford is doing 700 million in michigan, creatinghundred new jobs. as a vote of kids, it was state ad ve of confidence -- 700 new jobs. carrier as you know, i got involved very late, almost by two years late, but many jobs

leaving for mexico they're bringing back, at least 800 jobs, they're bringing it back. they actually never got to leave. i have no idea what they did with the plant in mexico but we'll have to ask them. because it was largely built. general motors, is investing one billion in u.s. plants, adding or keeping 7,000 jobs. and it will be investing a lot more than that over the next fairly short period. lockheed martin has 18, they have just announced 1800 new jobs, and u.s. plants, we're doing a great job and we started negotiating with them a little bit on the f-35. they cut their price a little bit. thank you very much. she's tough. [laughter] but it worked out well, i think for everybody. i have to say this, marilyn, you have gotten a lot of credit because what you did was the right thing, so we appreciate it cut the price over 700 million, right? by over 700 million?

do you think hillary would have asked for 700 million? i assume you wanted her to win, but you know what, you will do great and you will make more planes. it will work out the same or better. walmart announced plans to create 10,000 jobs and, all of those jobs are going to be in the united states. sprint softbank is putting in $50 billion because of our election. in the united states over the next four years to create 50,000 jobs. they have been terrific, by the way. and we have many others, many of you in the room, and you know exactly what i'm talking about. we have many, many other companies. and we're very happy. today we have 24 ceos from the largest manufacturing companies in the country and even in the world. they represent people just in this room, nearly one trillion of sales and two million employees, large majorities of which are in the united states.

they share our commitment to bring manufacturing back and to create jobs in this country which is, the biggest part of my campaign. i would say the border, big part, military strength big part. and jobs big part. i don't want to say which is most important. i guess we always have to say defense maybe the most important but many of you take care of our defense. you make great products. nobody makes the products that we do for the military, nobody. and in fact a couple of countries who were not allowed to buy from us, i gave them -- hello, jeff. i gave them authorization. you can only buy from us. i want them to buy from us. they were getting planes from other countries because our -- and they're allies, but they're going to be buying from us from now on. and i just want to thank all of my people, all of, my staff has been amazing. gary as you know, you know gary

from goldman. gary cohn, and we're really happy. just paid $200 million in tax in order to take this job by the way. [laughter]. which is very much unlike gary but he's great. he will be criticized by the media because he is getting paid $197,000. i will say he really wanted that money, which he gave up. i think he gave that up. did you give that up, gary? i think so. one of those things. >> [inaudible] >> i want to thank wilbur. wilbur has been fantastic. known wilbur so long, great guy, great negotiator. the deals we have with other countries are unbelievably bad. we don't have any good deals. i'm trying to find a country where we actually have a surplus of trade. everything is a deficit. with mexico we have 70 billion in deficits, trade deficits.

unsustainable not going to let it happen. can't let it happen. we'll have a good relationship with mexico i hope. if we don't, we don't. we can't let that happen. 70 billion-dollars in trade deficits. that doesn't include drugs that pour across the border, like water. so we can't let that happen. with china we have close to a $500 billion trade deficit. so, we have to doing. i spoke to many people. we'll work very, very hard and do things that are the proper things to do. but i actually said to my people, find a country where we actually do well? so far we haven't found that country. it is losses with everybody and we're going to turn that around. i want to thank jared kushner who has been so involved in this we have a great team.

we have a great team of all-stars. we're been giving credit for that? right now rex, who as you know, he is in mexico. i said, that is going to be a tough trip. we have to be treated fairly by mexico. that will be a tough trip. he is over there with general kelly who has been unbelievable at the border. you see what is happening at the border. all of sudden for first time we're getting gang members, drug dealers out. we're getting really bad dudes out of this country and at a rate nobody halls ever seen before. they're the bad ones. and it's a military operation because what has been allowed to get into our country. when you see gang violence you read about never before, all of the things, much of that is people here illegally. and they're rough an they're tough but they're not tough like our people. we're getting them out. i thought what we could do, maybe start with ken on my left. we'll go around the room and introduce yourselves to the press. lots of media.

one thing we have lots of media. how are you? one treats me very nicely, one of the few. hi. we'll go around the room and talk privately without the press and we'll figure out how to bring many, many millions of jobs more back to the united states. okay? ken, go ahead. >> thank you, mr. empty. good to be hire. ken frasier from mercury. >> thank you, mr. president. mark fields ceo of ford motor company. >> thank you, mr. president. denise morrison from campbell soup company. >> good soup. >> thank you. >> thank you, mr. president. greg kaser from united technologies, parent company of carrier. >> did you bring anymore of those jobs back from carrier, huh? one thing he did, i told, i said, you were given so much credit for that, and i heard two days ago that you are selling far more carrier air conditioners than you thought, just as patriotic move.

people are buying carrier because of what you did, bringing jobs back to indiana. >> saksly right. >> i thought i said that. i thought there was going to happen. >> all tech, thank you, alex gorski with johnson & johnson. >> david far with emerson. >> executive chairman of caterpillar, we have plenty of details. >> i like the d 12 . we have some of those. >> the d 12 i am waiting for. it will be bigger than anything in history. there is nothing like what you do and caterpillars are the best. when we let people manipulate their currencies it is the one thing that stops you. technology, we have to give you a level playing field and let

other countries give you a level playing field. i love caterpillar. i have been driving them for a long time. i might do that soon. >> thank you. >> thank you for the opportunity. >> you will be doing pipelines. you have the pipeline business because we approved the keystone pipeline and dakota but they have to buy steel so i will say us steel but steel made in this country and pipelines made in this country. the pipe is coming. >> when you drive trucks to minnesota you will be running up there. >> i will be out there. >> jeff bennink. >> lockheed martin corporation. i want to thank you for the opportunity we spent this morning to talk about generating jobs, we are very excited about

the fact this is one of the first actions you want to take on. >> thank you and thank you for what we did. lock 10 we call it. 90 planes with 90 planes out of 3000, but it was not doing so well and now it is doing great. >> we welcome you to the production line. >> good to see you again. >> watch me make a hole in one. >> trying to talk president trump, in nbc, on his course, looks at the 3 of us and says i am the richest in the world. then gets a hole in one. i have to say i have seen the

magic before. >> it is crazy. i said i was the best offer of all the rich people. to be exact. then i get a hold of it. thank you very much. >> bill brown from harris corporation and thank you for coming to melbourne, florida twice. >> great. >> wendell weeks, thank you. >> new corp. corporation. >> mister president. >> chairman and ceo of the national paper. >> todd craft is a big fan of yours. you know that. >> thank you, ceo of live ops representing the services industry and manufacturing forum. bring those services jobs back.

>> dow chemical, thank you for the opportunity to bring the language of business to the white house and -- >> thank you for your help. you have been great. thank you very much, nobody -- >> good morning. >> 3m, good morning. >> great to be back. michael dell with dell technologies. >> general dynamics. >> good morning, mister president. >> great complex. >> maybe i will let you take over. and then we are going to go through the room carefully and find out how we bring more jobs back and thank you to the press and media, we appreciate it and we will see you later.

thank you very much. >> that was one of the more entertaining -- not a news conference, not really a conference, just the president of the united states interesting one by one some senior executives from manufacturing companies. he went around the table joking with just about everybody, talk to the campbell soup scenario -- ceo, very good soup. or you are doing great. the carrier corporation, you will be selling a lot more of those. caterpillar. i love those depends, referring to bulldozers which i am waiting for my d 12 says the president. the us steel, you will be doing a lot of pipeline business because we are going to build the pipeline. and anecdote about golf. i'm the best golfer of all the rich people, laughter all around the room. he passed over ivanka. it is entertaining. is brett there with us?

come in please. every time i saw you i saw the same thing. have you seen anything like this before? >> no. this image is powerful in that it is a businessman comfortable in a business environment with ceos of the biggest companies in this country holding court and essentially going around the room saying how they are going to bring jobs back to the country. this is the kind of thing that is president trump's sweet spot, where he is sometimes be best at drying people out and making them laugh at sharing experiences, the jeff immelt story is classic, they are on his golf course in florida, he says he is the best golfer of the rich people and proceeds to make a hole in one. this guy figures out how to win. for all the detractors, this is what people who voted for donald

trump expect to see, that is something that i think the country is hungry for. >> i thought this meeting with the ceos would be all about the border tax. those manufacturers largely want the border tax and so do republicans in the house of representatives, senators, some republican senators do not want the border tax. i thought that was the main bone of contention at this meeting. it didn't surface when the president was introducing people around the table but that is the big deal that is stopping agreement on tax reform. have i got that right? >> that is right and what we are hearing from capitol hill, there is pushback against the border tax but some on capitol hill believe you need this in order to make tax reform revenue neutral as it is talked about. it takes the ability to balance out the rest of the tax reform

plan. that is something we didn't hear about publicly but i bet you will hear it is talked about once the camels leave the room. stuart: you know what is going on on the inside of politics and it is possible the border tax has to go. if we are going to get a tax reform package by august and august is the time when we will see the overall tax package. if you get it tax package by augu it looks like theorder tax has to be dropped. >> listening to maria's interview today, you can read between the lines that it is heading that direction but this is a businessman who is a dealmaker, you put things out there, take things off the table, put things on the table and this is a back and forth with congress and i expect that is what we are going to see on this speech tuesday night in the joint session address, not

technically a state of the union but a joint session address to congress where you will probably see a shopping list of what had been done and what expects president trump expects to do a coming months, tax reform top on the list. stuart: bathrooms don't make it when you have this news being made. i am being facetious but i looked at the establishment media and the key issue is the president's non-bathroom policy. >> not only that but it is not a law. essentially saying we don't agree with the obama administration memos sent out about these guidelines and they had to do that to make their administration point clear ahead of this case that is making its way to the supreme court on transgender issues. they had to get on board, the power to the states and local communities, and polls around

the election. and people believe hillary clinton cared more about bathrooms in north carolina and he could go to them. and they won the state. stuart: bret baer watching tonight, special report. thanks for watching. the market during all of this but we have seen with the manufacturing ceos, the market has held steady. we got to the live performance with the dow off 5 or 10 points. the dow is down 9 points. >> dow chemical's ceo said thank you for bringing the language of business back to the white house. the last eight years, you didn't build that, the government helped you, the private sector

doing fine, bernie sanders to a small business guy, i am not concerned about your income, the last eight years part-time job sword and the manufacturing jobs left the country. stuart: i want to change the subject completely. i will move away from the border tax and tax cuts generally. john wayfield from sunny bermuda, welcome to the program. good to see you again, sarah. >> that is incredibly interesting. not a press conference but the most entertaining introduction i ever heard from a president. stuart: i can't think of any other president that would handle a meeting like that and make people watch. >> he is in his comfort zone. he is a business guy, missing in the last eight years to president obama, you have a person liz is talking about that speaks business and make these business leaders feel

comfortable. stuart: this morning to wall street, goldman sachs put out a report saying we have now reached the point of maximum optimism on the stock market. i took that to mean it must be down from here. you got to head lower soon. how did you take it? >> goldman missed a call last year when returning bearish and too early, i don't want to bash goldman but they are ahead of the game, they make a valid point. the stock market was flat. so were corporate earnings to november 2016, the only thing that changed was president trump was elected. you see the s&p up 10%. that is this business friendly perception, the administration in the white house, got to bridge that gap to the corporate tax reform or regulation reform and the worry that was brought by goldman sachs is the president could get bogged down in things like immigration and

obamacare and that can hurt. stuart: the treasury secretary told maria on this network august, you got a tax package by august. that is what he said and why the stock market went up in the first hour of business this morning. >> i agree and if we see that tax package at any time. stuart: john layfield is joining us by satellite. ashley: not easy to do. stuart: it did freeze but there you are. if you can hear me, thank you very much. chris starwalled is with us, who has been watching the president's performance with the manufacturing ceos would i wonder if he will join in with us saying that was a bravura performance in terms of entertainment for our viewers at home. >> the president knows how to keep the eyeballs. i wish i were in bermuda and if i was i would let the line go

down too but the president certainly knows how to keep us in washington wrapped as he makes things interesting, he talks about things in a way that is engaging and we think back to eight years ago when president obama was having meetings like these, he was talking about stimulus, healthcare, gathering republicans around, sometimes business leaders and as they had these meetings it was very starchy, very dry. caddy shack has arrived and is going to upset convention for laughs and also for the sake of disruption. stuart: he is being furiously attacked from all sides, the media, the democrats, the hard left, etc. furiously attacking him and then he comes up with a performance like this. i think he is going over the heads of his critics and the media and talking to every day

americans in a successful way. i think he wins politically from this kind of performance. >> if he delivers. the thing is that the beginning you can blame your predecessor, you can blame the press, you can blame congress and you can be right in each case, well grounded plans in each part and they are for each president, but at a point, we are not at that point but as a point whether it is a month from now or two months from now or the beginning of the summer either there will be concrete achievements, there will be material accomplishments, the president can already point to some of these changes on immigration but bigger things as you point out, taxes on health insurance, infrastructure on these other issues, the accomplishment list needs to grow or your ability to talk over the heads of people around you start to diminish because it sounds like you are blaming the system.

stuart: you are dead right. you are not a financial analyst but let me tell you this. if we don't get a tax-cut package this year that we can see, debate, look at, the stock market rally is toast. that would be my opinion so you are right. it is performance, a show me market, show me economy, show me you are doing this stuff and getting it done. thanks for joining us, see you again soon. turning it over to blake berman. he has been at the white house. what do you have to tell us? >> what you were just watching inside the white house, before that at the executive office building just behind my camera there was a listening session with those ceos, members of the senior administration that you just saw in the white house, we got a sneak peek at what they were talking about. this is broken down in four groups, tax and trade, regulatory reform, infrastructure of the future. half a dozen ceos in the room

and what i can tell you is the discussion centered on regulation, being able to streamline it, get rid of it, talk about dodd-frank, in one instance, one of the ceos railing against dodd-frank saying there needs to be reform, also talked about the border adjustment tax and what to do with that and at one point in hour 15 minutes there, vice president mike pence walked into the group, spoke to them for a couple minutes and said we have an agenda that is this, jobs, jobs, jobs. that was the message out of the white house today. stuart: what we picked up from the president introducing the ceos is for the first time in a long time the president is business friendly. he is getting on well with the leaders of american industry and we have not seen that before. is that the mood you picked up? >> it was remarkable to see.

what you had in this room with all of these ceos sitting and talking things out face-to-face, seniormost administration official, the vice president walking in and out shaking hands, it was certainly an upbeat mood. if you are the ceo of a major company to come here to the white house with your colleagues, with your peers, getting face time with the vp and the president has to be priceless. stuart: you are the ceo of a company on live national television, you say to the president you better pay a visit to our factory and he said yes i will, that is priceless commercial time. you are having a good time i can tell. the dow showing no movement after the president's performance, still down a few points and we will be back. what if technology

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stuart: glad you are joining us and i hope you did not miss the president's performance as he went around the table with ceos of manufacturing companies, the entertainment center of the universe for 20 minutes, really good stuff. thursday morning wall street journal editorial page editor dan hettinger whose column today is titled trump versus trump, trump the candidate versus trump the president. we just saw trump the candidate in bravura style. that is not the trump you want. >> the two are in conflict. he won the election, doesn't have the campaign anymore. campaign has more votes but they are divisive. and the other party's candidate -- you don't care, you don't want their votes, you are trying to appeal to your people, trump with the tweets and comments, smack downs with the press, his

people love it but the thing is you have to understand, half the country are trump haters out there, all of us run into a lot of people who are anxious about where this presidency is going, what is going on in this white house, and i think the problem is the campaign, we have to admit these campaigns are like a national narcotic. we love this stuff, this cage fighting and so forth and it has begun to consume the presidency, the president himself enjoys the battle, enjoys the fight but ultimately he is going to have to act as president. i don't just mean being presidential, he will always be trump but he has more significant pieces of legislation to get past, most of which is a big tax reform bill. if you are out there making a lot of republicans talking to their constituents nervous about all this you run the risk of putting distance between those republican members of congress and the presidency.

then i think his presidency goes under the knife. stuart: you brought up the key issue in tax reform which is the border tax, border adjustment tax. that seems to be the sticking point between the house, which wants the border tax at the senate republicans who do not. it seems to me you are right, he has to be a president, he will knock heads in congress to get tax reform through. that is what you want. >> you want the corporate rate to come down and personal rates to come down especially the corporate rate. i know the border adjusted taxes related to that but it is a complicated and for many members, you don't want that to sink tax reform itself. the president as president is going to have to become engaged in the details of those negotiations. neil: has to do obamacare, repeal and replace first. >> there is a lot of work for the president of the united

states. stuart: he has to get in and sort them out and get the plan out there. >> many members of congress are sitting there saying the thing with the ceo is very entertaining or last week's press conference incredibly entertaining. what does that have to do with the price of tax reform over obamacare which is why they are in washington, i think at some point mister trump has to integrate himself with that process because that is why people elected him president. stuart: i have to ask is he going to do it? >> there is such a reservoir of goodwill for donald trump in this country on the expectation that he will do it i think he will respond to the fact that most people voted for him because that is what they think is going to make america great. stuart: see what you did? the dow jones industrial average moved to the upside.

you move the markets. now it is up 21 points. you did it. now it is up 26 points. you can come anytime you want. do we have david spring with us? he is with us, the author of the book the great equalizer. welcome back. >> great to be with you. >> when steve mnuchin said first thing this morning august, we are going to have a tax-cut package by august, we are going to pass it by august, the market went up. do you think we can stick to that timetable? >> i have listened to all the chatter. people think getting tax reform is like walking through a rose gordon, it was involved in the 81 tax reform as chief of staff, and the last big successful tax

reforms, republicans were at each other's throat. people look at jack kemp and ronald reagan, he was afforded reagan's side, it came a bit like a luke in the bowels of the treasury. you had this liberal tax reform out of nowhere, the white house was furious, don reagan allowed it to go public. endorsing reagan's tax plan, it was a shock to the system. the border adjustment tax can play the same role, which gets everyone out to scream. that is important in the process. if you don't like the border tax you need an alternative. we shouldn't be afraid and this administration shouldn't be

afraid to have this fight to grapple with these issues in a friendly way. it wasn't pretty in the 80s but it was successful. stuart: do you think it will be successful again? there is the contentious border issue, the border tax, we are going to do this. there will be a huge debate, fast and furious on both sides but it the end of the day it is doable, we can do this. is that what you are saying? >> debate is -- other proposals, here is an alternative, a way to modify, and a little less onerous, this is a healthy part of the discussion. as soon as they get the players in the ring, you don't like this, what do you like, they will hammer it together.

and republicans -- and have some exchange, and say i hate the border adjustment tax. let's get everybody together and say what is your alternative? stuart: if you can repeal and replace obamacare and get a tax-cut package through and an infrastructure package in this calendar year, 2017, that would be a stunning performance by this president. >> market i depending on it. in some ways the markets are handed themselves, that puts pressure on republicans to step forward. the administration has to be a player in this. i am amazed how little is known about the history of tax reform. it wasn't a garden party, but it

was effective and that is how it was done. stuart: i remember it very well. thanks for joining us. we will see you again. the dow industrials on the upside with 20 points up, big moves today, the market has been watching the goings on with the border tax and manufacturer, there you have it. ashley: we know he can chew a room full of business leaders, that is what he does. can he do it in the political arena and get his own party together and on the same page when it comes to massive issues of obamacare and tax cuts, we can do that and get it moving but maybe house republicans are on board, those in the senate not so much. stuart: house republicans want a border tax, senate republicans do not. the president has to get together and banks and heads to sort out a compromise. >> mitch mcconnell has to pick

up on that, you are right, he has business horse trading but can he do the politics with heavyweights, watch the headlines tomorrow. you have the golf game with jeff immelt, front and center when he said i was the best golfer of all the rich people when he hit a hole in one. that will be the headline in light of what maxine waters on scrupulously and judicious to her to say calling the cabinet the billionaire scumbags, i hate the word i have to say. it will be reported in light of that. stuart: the market believes there will be a tax-cut deal this year. otherwise the market would be down. it is up and close to 20,000800, never been there before, 9 consecutive record highs for the dow and up another 22. this market must believe attacks

deal is coming and we will be back.

lou: adams appear on the floor of the stock exchange, another record close if we closing record territory.

and a record of 12 in 1987. stocks doing well today, look at verizon, up 1/2 person. exxon mobil up because us oil is a little smaller than people expected and opec production cuts are paying off. boeing hit another all-time high, $176.75 up 1/2 present, they took orders in the last week. there has been concern about whether boeing will refute its $50 billion investment. more varney after this. with the help of the lowest taxes in decades, a talented workforce, and world-class innovations. like in plattsburgh, where the most advanced transportation is already en route. and in corning, where the future is materializing. let us help grow your company's tomorrow -

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stuart: the meeting continues in the white house, president trump meeting with ceos of huge manufacturing companies, vice president pens put in a brief appearance to part of the meeting and said the issue is jobs, jobs, jobs. that is the overall message from the meeting going on in the white house. i want to bring in former republican governor of maryland. i didn't know maryland had republican governors. >> there is not many of us and by the way, the first campaign ever was dave smith for congress. stuart: he was with us we 10

minutes ago. >> what he said about jack kemp and the role he played in 81, 86, tax reform is relevant to this discussion. stuart: we get tax reform and by that a cut in individual tax rate and corporate tax. and an infrastructure package, a big one and get them all this year do you think we can in fact create a half-million manufacturing jobs. >> through repatriation, i don't think this border tax splits the base, i don't think it is going to work but the expectation with regard to the republican base,j listen, you wanted the house, we gave you the house, couldn't get it done with the house, gave you the senate.

and we have a president and we have all three, the less in washington, all three, a couple in the first two years. tax reform with regard to individual rates and the repatriation deal and infrastructure deal is very doable. it is going to be done, it has to be done. a deal could include just rates by the way. not necessarily getting preferences of border taxes and all that. stuart: you could say the corporate tax is no longer 35% to 20%, top rate of income tax is no longer 39.6 but 33, you could do it like that. >> you could and obviously -- with regard to border tax, split your base, it will be hard enough to get the caps in the same room at the same time. something that splits your political base in exporters love it, the importers hated and they

are all in dc down the throats of members plus let me say this. the lesson in washington is try not to do things in a partisan way. that is why obamacare ran into trouble. you could pick off moderate emma kratz for a deal that includes infrastructure, the better off you are going to be. stuart: reading between the lines of what you are saying and i think you are saying that border tax has got to go. that is a nonstarter on the deal. >> that is my strong suspicion. with all the heavy lifting with regard to taxes and immigration and heavy lifting with regard to obamacare and everything else you want to do. there is only so much you can get done and to the extent you can get a good deal done because the bottom line is this is about growth. if we had two -- 3% growth, hillary clinton would have been

president, president trump kicked off the working-class democrats because of one and a half% growth. he can point to growth at 21/2% to be reelected. stuart: last statement from me, if you don't get tax reform this year and if you don't get an infrastructure plan, republicans in 2018 are toast and so is the trump stock market rally. you agree with that? >> if i do. it will be hard to go to the base and say you gave us what we asked for yet you didn't deliver, where is your credibility? i do think i am an optimist. i do believe this is relatively low hanging fruit with regard to tax reform, it can get done, it will get done, you will see increased growth and i will say this, people shouldn't get lost in the weeds.

it will be daily battles. this collateral issue, that collateral issue, can't get lost in the weeds of daily headlines because 81, 86 was not pretty but it got done. stuart: we can't be messing around with bathroom policy either. thank you for being here. steve mnuchin was on with maria bartiroma, treasury secretary. listen to what he had to say about taxes. >> tax reform is our number one objective and we think it is critical to getting the economic growth. we need to make sure the middle income to get the tax cut and businesses are competitive with the rest of the world, there are trillions of dollars offshore that will come back and this will create jobs, this will create investments and we need to make sure us businesses are competitive and our timeline is we are going to try to get this done by august, and we are focused on an aggressive timeline. stuart: droning on about this, i unless they get rid of the border tax there is no tax

reform. >> the august recess and talk to the house and senate leaders, both have a plan and this is a tricky one. could stall it. >> drop it and get on with good stuff. >> he has come out a detailed tax plan. we know what he was talking about on the campaign trail, public and have a plan but senate republicans have no proposal. all of those will eventually -- unanswered questions getting it done by the august recess. stuart: the president has a major speech, he has to come up with obamacare. thousand industrial average as we speak, 20,800, just a fraction side. i'm going to do sports.

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stuart: every day we have an amazon story. the story today is not that the stock at a record high of $860 was the story is amazon has applied for a liquor license. he will tell me what they are going to do with this. >> what a time to be alive. it is a drive-through window where you order your booze, beer and wine on amazon and go to the amazon go store which is not a store but has shelves. in seattle. they are testing at one of their buildings so you go there and pick up your booze at the drive-through window and drive off with it after you have ordered it online so they are testing it. the store looks like stocks, food in there and stuff.

in new york city. stuart: bringing french restaurant chains in amazon. >> try to be descriptive for you. stuart: amazon gets a liquor license, they put the liquor license in a new store in seattle. tick tick tick on your computer and waiting for you. you can pick up your groceries as well. >> what could go wrong? liz: looks like the store. come on, you guys. stuart: ready to eat, french for ready to eat. the french have a different word for everything. next case, week numbers, that is your story too, from l brands and the stock is taking a hit, they have problems with their victoria's secret business, the story is victoria's secret and

the other one, bath and body work, big in shopping malls but shopping malls are not doing well. liz: to your point about women go shopping and men by, women go shopping in other places. women by in camping stores and shop but with victoria's secret you know what i been. it is an old joke. t.j. maxx is killing the stock right now. stuart: let me tell you. we are going to take a commercial break and i will introduce you to neil cavuto who will laugh at what we have been talking about but we will be back in a moment.

. .

stuart: we have approximately 25 seconds to go before neil cavuto takes it away. i say we will not mention ready

to eat in french. they took it out of me during the commercial break. i had to admit doggie diner is my preference. that is a chain on the west coast in california. they have huge dogs as their advertising thing. neil cavuto, sir. all yours, buddy. neil: is lizzie there? liz: yes, sir. neil: lizzie, i thought it was -- predamanga? stuart: very good. neil: there is nothing ever ready to eat in france, period. you're waiting for that food, delicious as it is you will be waiting a while. that's not cutting it. isn't lizzie amazing? liz: no. neil: she knows, she has forgotten know in an hour than i have learned in my life. that is how scary smart she is. liz: no. neil: stuart: what the is name of this show? neil: well i'm just com