>> you predict boast malls? liz: you feel like you're the last person alive when you stand in the ghost malls. >> that bad? our time is up. charles payne is standing by ready to take it away. sir, it is yours. charles: hello, everyone, i'm charles payne in for neil cauto. we're watching number of flight cancellations thousands without power and we'll have more on that coming up. but first, to the firestorm in washington over the cbo report on the gop health care bill. blake burman is at the white house with the latest. blake? reporter: hi, there, charles. speaking storm you saw our camera get knocked by. we're getting a little bit here. this is something for republicans and democrats to hammer home. we're talking about projection

shows decrease in premiums by 10% in the long term. they also point to how the congressional budget office showing that the deficit will be reduced by about $340 billion over 10 years. democrats say 14 million people willing off health care by next year. that jumps to 24 million in decade time. this cbo score is getting a whole lot of pushback from folks within the administration and republicans on capitol hill saying look, it is just simply not accurate. speaking of the storm, here is how theirector mick mulvaney put the cbo score. listen. >> good morning from washington, where as you can see, according to the congressional budget office it is sunny and 75. reporter: as you saw from the camera getting blown over there, it is hardly the case. democrats continue to talk about this american health care act as well. nancy pelosi held the news conference this morning. they simply say this is

unsellable bill no matter which way you look at it. >> trump wants to call it ryan cair. ryan wants to call it trumpcare. classic abbott and costello, if it is so good why don't we want their names on it. reporter: the sales pitch, charles, remains with conservative republicans. members of the house freedom caucus who not put their support hine the bill. there was supposed to be a bowling night at the white house to get them behind it. not the kind of day for bowling even though it is indoors. things turning upside down here in d.c. charles? charles: blake, thank you very much. critics pouncing on the cbo predicting 14 million people will lose insurance. how are republicans planning to win the messaging war? to republican congressman ron desantis. thanks for joining us in the wintry day. >> nice in florida, charles. charles: rub it in. one of those things where the republicans are bracing for this

sort of news from the cbo. there were some things i think ironically fell into the party's lap. there are still issues, what everybody is reading in government necessarily taking it away. so i think -- charles: is that a dangerous message, sir? i don't want to interrupt but i started out on wall street i had a chance to buy my own insurance with one-year-old daughter. if you tell americans they don't want health insurance. they don't want their ki

difficult for people. you don't do an individual mandate. some people not choose to buy expensive insurance, but if you actually did market reforms we talked about, removing all of the obama regulatory burdens, then insurance would be more affordable i think yould end up adding more coverage in the long run. unfortunately, people are talking about the premiums are going to decline by 10%. but that is not for another 10 years. charles: right. >> the fact of the matter is, if you have 20% increases over the next two or three years, you're

never going to get policies implemented in the out-years. i think it will be difficult for donald trump. running for re-election saying we wanted to lower the premiums. charles: that would be difficult for the 2018 elections. further what you were saying for the audience, cbo saying ultimately by 2026 premiums overall will be down 10% from currently, before that happen, the inflection point doesn't happen until 2020. before then they continue to go up. they are up 25% for older americans. what is the solution for the republican party? because there are some things in here that everyone, no matter what niche you're in, whether in the freedom caucus or you're more moderate, there are things here, for instance, lowering the deficit is something part of all traditional republican orthodoxy? i done you have nibbled around e edges of the core obamacare regulatory framework.

that is really driven up premiums and the he deductibles. there are some things, regulatory changes in the bill. the argument you can't do regulatory changes in a budget bill but there are some in there. if we go bolder there and really pressure on premiums. if we deliver that, then it would end up being a good bill. if you don't deliver it, all the problems that end up continuing to happen, that will be attributed to the republican health care bill instead of obamacare. that is bad policy but obviously also bad politics. charles: no doubt president trump waed against embedded landmines tackling this right now. but it is admirable that the republican party want to fix it because it is in a death spiral. having said that, tax credits, that is a big sticking block within the party. there is a pretty good article in "forbes," what if there is

compromise and tax credits were means-based adjusted for age? that might spread coverage and make it smart. poorer, middle class working families could buy coverage that would not cost them an arm and a leg. so could younger people, folks who are older, with money in the bank could afford better coverage transition for medicaid but wha. rand paul's proposal has tax credits. there is differences about age, income, what not. i think those can be ironed out.

if you get regulatory stuff right and medicaid right, i think tax credit issue, we can solve that pretty easily. charles: before i let you go then, we're circling back to the main sticking block here, is this considered in your mind and perhaps mind of republicanthey m buying cheaper plan. unthe law that stays in there. that is helping to drive the cost of insurance high. charles: congressman ron desantis, always appreciate you'ren even wherubbing it in comg from the sunshine state. >> the y are, my man. charles: i'll try. leaders are confident in this win. take a listen. >> if you read the entire report i'm encouraged by it. it exceeded my expectations. once the reforms kick in, cbo

tells us it will lower premiums 10%. it stablizes the market. >> i'm actually very encouraged by the cbo report. one, it lowers premiums, biggest concern people have out there. secondly it lowers the deficit. when you look at small business confidence just booming that is because it takes away more than $800 billion of tax burden on them. charles: to charlie gasparino. when do investors start getting antsy about the timing of the agenda? charlie, one thing i find interesting in today's session, a lot of companies associated with infrastructure these stocks are getting hammered. u.s. concrete had a great number yesterday. stock was up getting hammered. some other trump names should benefit from his agenda looked a little wobbly lately. >> yeah. we should look at financial stocks. they're getting a little wobbly. here if you talk to anybody, sophisticated investor out there, major institutions what are they worried about? what are traders worried about?

they're worried about the economic plan being delayed even more because of sort of back and forth on this bill. i think the congressman made a good point to you. there is so much to hate in this bill for conservatives it might not pass. or it may be a drawn-out thing. think about what he said. he made a good point. the uninsured rolls will go up likely because individuals, kids, who, i'm not talking about you with your one-year-old. charles: i was younger i'm saying i had to occasionally roll the dice to go without insurance. it didn't mean i wanted to go without insurance. >> you were healthy and could deal with it, right? charles: right. >> if you got sick, you go to the hospital pay for it out-of-pocket. my point those rolls will increase because of that, of uninsured. here's where it gets problematic, premium increases that occur immediately. they're talking about inflection point, by the way, have you ever seen acutarial tables worked out perfectly in 10 years. charles: further out goes less likely it will work out.

>> the problem right now, republicans are going to be stuck an obamacare light plan that increases premiums according to this, if you believe this. that is politically damaging. it is bad for the market. particularly if that causes these guys to fight about this for the next six month if we don't get tax reform. charles: according to cbo the next two years, into 2020 premiums go up as much as 20%. >> are you counting on that? charles: no. what if they're wrong, to the downside? what if it goes up more? obviously misscored obamacare. >> remember when president obama said if we pass stimulus plan, unemployment will fall to x, y, z. never happened. these things are widely wrong. premiums go up because of the convoluted nature of obamacare. they made a tactical mistake addressing this now. wait until the economy improved markedly with fiscal policies

and gone after this with a slow roll. charles: that barn door is open. >> now you can't. charles: what do they do? do you think somehow the white house says hey, timeout. relook at this thing? does president trump say i tried to be a team player with paul ryan on the wrong track. we saw him change campaign managers in course of one-year campaign. not like he can't see the writing on the wall? >> that would be preferable course, listen, we're going to table this. we'll fix it on the edges. we'll go right into my fiscal agenda. i think markets would applaud that. why do we say markets? people say wall street here. markets go up when corporate earnings go up, that is what we're talking about here. charles: sure. >> the end result is markets up, but in between fiscal policy spurring economy and getting people back to work. if he did that 180 right now, left-sharp right turn i would

call it i think that would be beneficial for the markets and the economy. charles: there is high-stakes game of chicken going on in the republican party, interesting to watch. >> conservatives versus moderate conservatives, did you ever see that when they control everything? >> i remember religious right versus everyone else. charlie gasparino. oil on pace for longest losing streak in 14 months. that is obviously weighing on the stock market. in a moment we'll dive into what is driving it lower. if you're snowed in, thanks for watching. cozy up next few hours, if forecasters are right you might want to be stuck inside for a while. we appreciate you spending time with us. we'll be right back. dearthere's no other way to say this. it's over. i've found a permanent escape from monotony. together, we are perfectly nced.

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charles: the northeast blasted by a blizzard, just not impacting the northeast. let's blitz through all the blizrd newyou need to kn. adam shapiro on the outside on the plaza, adam. reporter: greetings from antarctica, charles. let me show you. this is not just snow but ice. we're getting ice accumulation out here. that makes road conditions kind of hazardous. here in new york city we have five to six inches in central

park. a little more in the bronx. depend where you are in the city. as you talk about impact to this storm up in connecticut they have more than a foot of snow on the ground. they're on their way in some places to two feet. they will surpass that. when you talk about flights canceled nationwide, it is more than 6,000. just 5800 today. but since the first cancellations began, more than 6,000 flights have been canceled in and out of the northeast. this snowstorm essentially stretches from washington, d.c. all the way up up to the northen parts of maine. washington didn't get hit quite as bad as they thought. they get an inch of snow down there, katy-bar-the-door it is all over. here the city is functioning just fine. subways are on different schedules. no subways outside the city. everything underground is operating. there are not a lot of traffic in the city because people plain didn't come in to work today. as you get further north, that

is where problems begin. for instance, amtrak has no acela service from new york city to boston. there is modified regional service. there is modified regional service and acela service going south to washington, d.c. the good news blizzard warning for new york city has been lifted. it's a "storm watch." there is more ice than snow and it is very cold. back to you. charles: adam, i would say stay warm but that would be cruel. reporter: yes it would. charles: all right, buddy. travel in and out of the northeast is frozen. jeff flock live at o'hare airport with the latest cancellations numbers. jeff? reporter: adam didn't get enough snow in new rk, come to chicago. this is the scene at o'hare outside the united terminal. still snowing here. this is not the same s this is what they call lake effect snow, peculiar to area around lake michigan and lake erie.

you get moisture off the lake. take you inside terminal. snow numb fores 4 to 8 in new york? we have seven on the ground already in morning in chick he go. look at boards. look at all the laguardia flights are canceled. all the newark flights are canceled. all the boston flights, all the d.c. flights, all of them canceled and this rippled out all of the rest of the flight map around the u.s. give you the latest number on cancellations, from our friends at flightaware, we're now up to 5894 cancellations. this is in and out of the u.s. today. over 1000 delays as well. it's, it's a mess out here, mainly a mess at the airports. not so much a mess from the weather i don't think. it is not as bad as it could have been but it's a mess anyway. charles? charles: you could argue over abundance of caution but we know this is times we live in.

we would rather be cautious. thanks a lot. we really appreciate it. i would say stay warm but you are. appreciate it. how is that impacting trading at new york stock exchange? nicole petallides is there with the latest. nicole? reporter: big picture we're under pressure today. the dow is down 60 point. we're down for the week, dow, nasdaq and s&p for these two trading days for couple reasons. we have the nor'easter. don't have all traders on the desks up there. while people showed up here they're saying volume is little bit lighter. in fact our senior editor charlie brady noting that volume is 20% lighter than the one-month average. coupled with fed day tomorrow and waiting on that. wait and see mode. thei sd, watching l closely. that is a big laggard as energy is the worst sector of 10 sectors with down arrows. oil at 47.34 a barrel. this fact seeing the longest

losing streak in 14 month, since january of 2016. in the last seven sessions of losses, losing about 10%. why? because the despite the fact that opec has done cuts they're still seeing a rise in supplies and they blame that on the u.s. and development here in shale. you are seeing overall this latest news impacting energy stocks. for example, marathon oil down 4%. transocean down 2%. so you are seeing overall a sentiment that is to the downside and wait and see mode on the feds tomorrow. charles. charles: nicole, thank you very much. snow continues to barrel down airline stocks taking a hit as thousands of cancellations are piling up but storm-receipted stocks like lowe's and douglas dynamics are up. we'll keep an eye on those throughout the day. the storm isn't delaying president trump's big sell. he is going on the road again. find out where and left. left hitting gop hard. does the lift -- blitz from the

left go too far? that's next. ♪

neil: president trump hitting. >> president trump hitting the road on nashville tennessee as bernie sanders tells reports that americans will die if the republicans bill is passed. with this kind of scare tactics you wonder will they work? former young democrats for america president. former mccain campaign advisor ford o'connell. great american alliance co-chairman eric beach. atima, let me start with you. you know talking about people dying, pushing granny off the cliff. many ways that is sort of political rhetoric. it boxes washington, d.c., into a corner where feels like nothing effective ever comes out. >> not necessarily describing anything that bernie sanders says on the topic.

obviously a little bit more from a very liberal wing of the party but i will say, you know, to cast the aca as something that is absolutely killing people when trump enrollment has, enhe rolement in state where trump won actually has gone up because people are needing this health care, is really what should be the concern making sure that we're keeping people on insurance, not kicking them off to save a few dollars. charles: ford, as a cbo underscore, there were a lot of people got on trumpcare including to avoid penalties. having said that, hard to see premiums skyrocket, people losing their doctors, every promise made broken would suggest the current plan is working? >> you're absolutely right. that is the case the republicans have to make. they have to say obamacare is unsustainable. this will lower costs. this is going to increase choice and keep those with preexisting

conditions on support here. let me understand something. there are three things to be true in life. death, taxes, liberals would scream about uninsured. no matter what the cbo report said they would hit republicans over the head with a newspaper. charles: getting beyond political rhetoric of it all, this is thorny issue, complicated issue with aging population. you have to wonder whether there is bipartisan effort. the ball is in the gop's court, heard nothing from democrats anything constructive with how to make it better. >> but the important thing donald trump ran on this repeal and replace. but also he is a manager. the cbo report also had some green lights to it. it had reduces the deficit by $337 billion over 10 years. there are things in the report he can work with to bring conservatives to the table and reach out to moderates as well.

i think democrats will have to come around. it will be hard position for the democrats to explain to the american people obamacare will work for them. when we see the results, into the american people's checkbooks, when that happens, it gets reduced from premiums, then donald trump will do what he has done, lead. charles: he zoo you shaking your head. when democrat push back on the notion that obamacare was one of the drives forces that propelled donald trump to the white house i find it crazy because those premiums hit on the eve of the elections. they were shocking. it was the ultimate sticker shock and people rebelled at voting booth. >> it was 3% of those whose insurance premiums actually went up. after the election, enrollment in states where trump actually won went up tremendously. most of his voters, low income, folks actually killed on trumpcare plan. >> i remember at 2016 democratic

senator said we have to fix obamacare. hillary clinton said same thing. you guys aren't doing anything because all you want us to do slip, fall and fail. >> that is exactly what happened in 2010, ford just to be absolutely honest about it. we're willing to have a conversation about how we can do this and save cost. >> always willing to have a conversation but never willing to do anything. that is -- >> that is absolutely true. we managed to pass aca which is tremendously popular plan, helping people with preexisting conditions and on actual health care plan up until 2016. >> gop plans keeps peel with preexisting conditions. >> also 14 million people over the next 10 years how they're able to save all of this money. you can't kick people off the health care plan. charles: by the same token, you can't offer people a disingenuous plan say you're covered when they can't even afford the deductible. >> this plan is not disingenuous. charles: we'll open up full kimono, play with the numbers,

don't be disingenuous about it. a lot of people who do have coverage, quote, unquote coverage, can't afford the coverage. >> one way or another we'll pay for it. it is disingenuous -- charles: we or individual. we pay for it. taxpayers someone else. it gets back to why redistribution of wealth and responsibility which is a part of this conversation. a lot of people aren't going to but should play a bigger role. i want to switch gears a little bit with you guys because president trump heading to michigan tomorrow. yesterday, ford had a major news announcement that sort of went unseen. lincoln suvs are selling like hotcakes in china. eric, considering that wall street is worried about border taxes and a trade war here's the deal. they have to do it with a partner in china. they havto bld them in china because there is 25% tarf. if a chinese company were to import carin america, they would only be 2% tariff. this is the kind of stuff people get upset about.

this is not the definition of fair trade. >> look, donald trump has started talking about things that are going to help the economy and job creation. we've already seen the results of that. potentially border tax proposal. i suspect he might talk about fuel efficiency standards to reduce more regulations that affect our automotive industries. his focus is on u.s. job creation. we've seen numbers from adp last month, 300 new jobs. 100,000 of them in manufacturing, construction. and constructing. so he knows how to produce jobs and create jobs. i expect a speech today to build a culture of confidence with the automotive industry. >> let me say one thing about the fuel efficiency situation. this is a brilliant political move by donald trump. because idea relaxing fuel efficiency standard will bring about jobs and growth in the auto industry which deals with 3.6 million jobs directly and indirectly. but it is also politically brilliant creates a situation

where big labor goes on crash collision course with environmentalists. remember why donald trump won election. he got 42% of the working class white voters. they said the democratic party doesn't care about our jobs and livelihood. this is down right brilliant. charles: that is brilliant and easy. those c.a.f.e. standards president obama put in are mind-boggling. they would destroyed the industry and driving around cars made out of tin so the automotive industry. this is easy victory for donald trump. >> one could say this is easy victory. those regulations were put in place, at the time, the automotive companies were producing suvs. when gas prices went up and we ended up bailing them out in 2008 around 2009. big issue, if they produce mid-sized cars they need to keep doing even if they want to add on suvs so we don't end up bailing them out again. charles: they make a lot of

money on suvs. ford, get back to my original premise because i think it was lost. when china charges 25% tariff for us to bring products over there, if you want to build over there they force you to partner with a chinese company. we have this massive deficit. that gets to the heart of what donald trump is really upset about and a lot of people in the heartland. you have to wonder what the reaction is going to be. does that mean we will get a border adjustment tax? will we go through a tariff war? peter navarro and wilbur ross in the white house, in the oval office saying this is nuts? >> absolutely. i don't think we'll get into sort of a tariff war but i will say this, donald trump is looking for ways to make sure the auto industry in particular is more competitive with china because remember, we're number two auto market. china is number one. it will be very interesting to sehow he deals with what i call srce of origin rules, what is made in america, what is made in north america, what is made in the rest of the world.

coming up with the right elixir to make sure our products are competitive with china and rest of the world. charles: i hope the ultimate objective to pry open markets in rest of the world. guys, thank you all very much. >> thank you. charles: "brexit" underway. wheels are in motion. next the guy who started the process. daniel hannon is here. president trump's travel moratorium is about to be implemented. one state has someone saying the white house has, has to go even further. it is not enough. we'll be right back. ♪ yes? please repeat the objective. ♪

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♪ charles: well the uk has removed the final hurdle to begin their official exit from the european union. here is uk prime minr theresa may this morning. >> last night the bill on article 50 successfully

completed its passage through both houses. [shouting] it will proceed to royal ascent in the coming days. we remain on track with the timetable i set out six months ago. this will be a defining moment for our whole country as we begin to forge a new relationship with europe and a new role for ourselves in the world. charles: european parliament member daniel hannon, who has been at the heart of this movement from the very beginning. congratulations. >> what a great day. charles: that was last hurdle. nothing from unelected bureaucrats. that's it. >> more people voted to leave the european union than have ever voted for anything in britain. the two houses of parliament given their ascent the process is about to begin. charles: the process begins. when do you think we'll see article 50 invoked? >> so article 50, if you like giving notice, you're starting the process, that will happen at some point in the next 10 or 12 days.

there is then a process of up to two years and if at the end of those two years no deal is done we're out anyway, which is, a lot of commentators think that puts britain in a weak position. i really don't understand why. the alternative would be in a position where the other 27 state could string it out exacting payments from us more or less in perpetuity. charles: the remain camp in the campaign talked about financial armageddon if the country went down this route. maybe more pressure recently on the pound sterling. the economy has done very, very well. do you suspect there could be economic retribution particularly from germany? because they sort of want to send a warning to anyone else contemplating leaving the eu? >> you're right. none of the predictions of disaster materialized. the people who made the predictions said, they did not get that wrong.

they behave like doomsday consult. just you wait. just you wait. look, i have a much higher opinion of our european allies than that. we want the rest of the eu to flourish. we want to happen because prosperous neighbors make good customers. we have a direct immediate interest in well-being of countries of our suppliers, customers and friends. that works both ways around. so i expect this to be a fairly amicable process. remember we're starting, unlike in every other trade talks ever, we're starting from a position of zero tariffs, and of regulatory equivalent. so on this one the inertia bias you like is working other way around. it is difficult to see who wants to insert new trade barriers when there aren't any at the present time. charles: of course. there is existing knowledge it's a reciprocal relationship. why ruin that? why not just enhance it and make it better? having said that i read a lot of reports there are concerns about

the city, london's financial district, maybe disbanding, moving, a lot of operations. maybe even a large majority or majority of it outside of london. is that fear, is that a legitimate fear or concern? >> well so far there hasn't been much evidence of that. we've had a lot of investment into the london since the vote. big dutch bank img moved its headquarters to london. wells fargo spent 300 million pounds on a european hq in london. if we get things wrong inside or outside the european union, if we have the wrong regulation or taxes are too high that will damage us. i don't think that will happen. i think outside of the eu we will have a lower, flatter, simpler tax system and more global trade policy and more deregulated economy. i think we can become a regional hub not just in financial services but places where people want to come to do business. charles: daniel, we have major elections in europe. including elections this week. a loof people will springboard

of at momentum of "brexit" election of donald trump in this country. are you concerned about the ultimate unraveling of the eu, the euro, and the eu and every country sort of going it alone? could some of these countries sustain them service going it alone? >> i wouldn't overdue the parallels first of all. there is a huge difference between the "brexit" campaign and let's say marine le pen in france. her campaign is angry, nativist, protectionist with racist undertones. that is very different. charles: she has come a long way from her father. >> no question. charles: she is, she was even complimentary this week of islam but, i know what you're saying. >> compared to the old man that is true. charles: what about the people though? i get you, maybe the campaign style in of itself is different but the underlying anxiety and frustrations of the people may be parallel? >> so there is probably a shared discontent against the failures

of a remote political elite whether in the national capitols or brussels. that much we have in common but i'm really pleased in britain it took an open, liberal and democratic form rather than an angry protectionist and socialist form which is what is happening in france with le pen. not that i think she is likely to win. our system has been very different. charles: sure. >> to answer your original he question about should the eu unravel, like i say we have an immediate and direct interest in the stability and prosperity of our closest neighbors. what i would like to see for european union in orderly way to return powers to the nation states. if they are prepared to do that in our case we would not voted to leave. unfortunately i don't see any sign of that. they're risking storing up a much bigger explosion. for example on the issue of immigration, britain is feeling its way towards a moderate, sensible balanced proposal we'll continue to have migrant from the e.u. coming to work but won't pay them benefits.

almost every electorate in europe would insist on that. if -- charles: thank you very much, congratulations. president trump's travel moratorium is about to go into effect. we'll have major warn about refugees already here. we'll have major details after this. ♪ [vo] quickbooks introduces rodney. he has a new business teaching lessons. rodney wanted to know how his business was doing... ...so he got quickbooks. it organizes all his accounts, so he can see his bottom line. ahhh...that's a profit. know where you stand instantly. visit quickbooks-dot-com.

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charles: president trump right now meeting with deputy crown prince of saudi arabia at the white house. the saudis play a big role in the price of oil among other things. we're sure that's going to be among the topics being discussed at white house at this very moment. oil at he 3 1/2-month low. oversupply fierce weighing down the market. will they stick to the oil pact they agreed upon in november especially after we're pumping like crazy? tennessee becoming the first state in the nation to sue the federal government over refugee resettlement. this as the president's executive order is set to take effect on thursday. former master sergeant jason beardly here. for where it goes from this point. >> thanks r having me, charles. enjoy the snow, i hope.

charles: i glad i am indoors. here is the thing, jason the refugee program under barack obama, where a lot of governors found out at last minute refugees were put in their state. we're seeing pushback, tennessee being the first state. >> right. the pushback goes all the way back, charles. let's do a quick review. this was a federal law passed in 1980. it stated that the feds had the possible to consult with the state about resettlement. in 1984 another amendment to the law we have to run programs to get refugees over welfare and state assistance. in 1995, an amendment or regulation passed that is not statutory law, it is regulation, the states will have to start funding these immigrant resettlement programs, or we're going to give it to a charitable organization, non-profit organization but the state still had to reimburse. roll the clock forward to 2007, a lot of states started coming up out of these regulations, and

they wanted to challenge the feds. hey, first of all you're not consulting with the states which the law says you have to. and number two, you're shifting the burden down to us to pay for these programs. so really what tennessee is doing is reasonable state sovereign right trying to defend theirselves and keep the feds from pirating their budget and handing it out to unelected non-profit organization who are relying on regulation, not law to get that money. so basically states are trying to defend themselves and i applaud the effort. charles: how do you see it playing out? they say you can't sioux city hall. if you can't sioux city hall you will have a heck of a time suing the federal government? >> this is pretty easy one. on paper this is open-and-shut case. this will go to the supreme court eventually. justice roberts himself says states are sovereign independe entities and sometimes they need to act like it. chief justice counsel at thomas moore center, those are the guys

helping with this, this guy says hey, tennessee will act like a state. the way this plays out, once it gets to the courts they will have to find with us because the feds are not complying with their own law passed in 1980. they're relying on regulation again to pirate the budgets of the state. i think it will play out. it will take a little time. the executive order coming on thursday will help clarify immigrants who are coming into the united states. that is just a vetting process. it has been overblown. it has been emotionalized. but real truth it is just about vetting, who is coming in, what documents we rely on for it. i think you see good things coming out of this. charles: what replaces it? where do future refugees go? and how much sway or say should individual states have? you would have the nimby kind of thing where almost all of them will reject them. >> that is an excellent question, charles. really what the law actually states that the federal government is in consultation with the states no less than quarterly, that is once a

quarter. it is about a hand-walk. we agree to settle cerp amount of refugees to the states are find with that what the federal government promised in 1980 reimbursement for 36 months of any monies attributed to this program. by 1984, they pulled that money back. by 1990. it was gone. now the feds were saying here is the program. it will tax you. it will go after your budgets. we'll not help you. all the feds need to do is get back in the business of consulting with the states. that is where tennessee is on the front edge. if we get the checks and balances working again, that is precisely what our government is supposed to do, right? the states check the fed. charles: the whole federal bait and switch. we've seen it with medicaid and refugee programs. >> pirates. see you, charles. charles: cbo score is out. there arcas to abolish the cbo is that warranted? we'll discuss that next.

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call one reverse mortgage now and ask for your free information kit. charles: well the cbo score is out and the white house will likely respond to those criticizing its health care plan pretty shortly. we'll bring that to you when it happens here on fbn. first to peter barnes with initial reaction. peter? reporter: that's right, charles. we'll hear from sean spicer at the daily wife house briefing about an hour from now. he is sure to get hammered from the cbo report. it said 14 million people would

lose health insurance coverage in 2018 under the house republican plan mainly because it repeals the government mandate to buy health insurance coverage. cbo says the number would rise to 24 million by 2026 as the president government slows the increase in medicaid. but the premiums would be 10% lower at end of 10 years and federal deficits would shrink by about $340 billion over a decade. the numbers gave both sides ammunition. >> when you look at the core of what the cbo says, does it lower premiums, does it lower our deficit and does it remove taxes from small business? those are all yeses. i'm actually an couraged by what the cbo says because it proves that, yes, we'll lower premiums. >> they want to show that they have some savings, of course you can have savings if you cut off millions of people from access to care. so this is, it is a, it is about values. this isn't about politics. this is personal.

reporter: the republican plan faces a critical test on thursday. that is when the house budget committee meets to vote whether to send it on to the floor of the house for a full vote. there are republicans on the budget committee like dave bratt of virginia and mark sanford of south carolina who oppose their own party's plan because they say it is not tough enough. separately a group of senate conservatives is scheduled to visit the white house later today to talk about the republican repeal and replace efforts. but the president's attendance is not confirmed according to senate spokespeople. looks like it will be a meeting with top staff. charles? charles: peter, thank you very much. some now on the right are dismissing the cbo due to its faulty track record. should the agency itself be challenged? gerri willis has been following this very closely. gerri? >> hey, charles, look, if you want to know how much stock to put into the cbo numbers let me tell awe thing or two. look how the cbo scored obamacare. not so good it turns out.

if you look at obamacare, exchange enrollment, how many people would sign up, cbo hey, it will be 21 million people, maybe 22. they ratcheted it up. but the actual numbers? 10 million. they overshot by 120%. when it came to the medicaid expansion, again, the cbo comes up short. they don't understand what's going on here. here's what actually happened. more people enrolled than they expected. as a result the cost was more than they anticipated. the cbo said it would be 42 billion. it was actually 68 billion, against 62% miss there. here is the real shocker, charles. when you look at what they thought woulhappen with the insurers, take a look at thi the cbo said, hey insurers will make so much money that over three years they will give the federal government back $8 billion. that is about $2.6 billion a year. uh-uh. no way. these insurers lots lots and

lots of dough. 2.5 billion in 2014. 5.8 in 2015. this is not error the magnitude. this is an error of direction. so big problems for the cbo numbers. of course as you know, the white house set to challenge these numbers. some people are going even further than that. listen to newt gingrich. >> they should abolish the congressional budget office. it is corrupt. it is dishonest. it was totally wrong on obamacare by huge, huge margins. i don't trust a single word they have published. i don't believe them. >> so lots of criticism of the cbo numbers. anything you try to score over 10 years is very, very tough indeed. charles? charles: you know, gerri, can you stick around? i want to bring you into this discussion. republicans of course shining a light on the positives of the cbo report you but will businesses in america, that is a bigger question. will they see it as a big

improvement over obamacare? joining us "real clear politics" cofounder tom bevin and fox business network's liz macdonald. tom, let me start with you. the republicans were pushing back on the cbo score knowing they have a faulty track record and they would find some losses. to what degree we weren't sure. how do you sell it to the american public and american businesses out there? >> well that is a great question. in many way this is is public relations battle as democrats, you know out there, as you her nancy pelosi ran the clip of her earlier saying that millions of people will get thrown off insurance. republicans have to emphasize that the affects of this law favorable to them, in many ways the cbo report was better than they expected in terms of deficit redoes, and the like. they have to emphasize, the key distinction for them to get over is that the coverage, loss of coverage that will ensue, the

cbo projected, a majority of that is because they will repeal the mandate, people forced to pay for insurance, may opt out or may decide not to get coverage at all. if republicans articulate that, they will be in better shape. otherwise it will be a tough sell for them. charles: emac, if they go down the path it could be dangerous saying people don't want health insurance coverage. certainly everybody wants it for themselves and their kids. but wouldn't it be smart president obama made people pay for insurance they couldn't afford. get the private sector in there to get cheap plans out there? >> they joke about socialism, what is sardine it is a whale after 10 years of socialism. that can be said about your wallet after obamacare. that is the complaint, that insurance deductibles are so high, premium costs start to skyrocket. gerri makes great analysis how cbo has been totally wrong. we understand that, by the way

keith holler runs cbo is a republican. he is under the gun right now. obamacare promises were 26 million people by this time would be enrolled in the exchanges. turns out the cbo was wrong about that. cbo says 24 million people will be out of insurance. we need to step back and remember what obamacare did. not just insurance premiums going up an deductibles. they need to point out how bad part-time job increase number about jobs has gone up. staples, hundreds of companies including colleges, including local governments putting workers on part-time status. that is sort of lost in this context right now of the gop trying to sell their replacement plan. the democrats are better at political theater than the republicans. so, i just, i see that, that context awol right now. charles: that is not necessarily good news, gerri, this is officially transferring from the democrats problem to the gop's

problem. you know, and i think emac brings up great point with respect to the redefining what is full-time work was. the crushing impact that it had on poor people and small businesses. so what do you see between now and the ultimate product how to sort of get around some of these issues that are challenges for them? >> well it is going to be very, very tough. look as liz says, the democrats much better at putting together a narrative that is appealing, talking to the american people on this. republicans though, they have a plan. they have been unable to articulate it in ways that are attractive to the american public. look, reality is, that ultimately obama care was falling apart. something had to happen. people who are getting hurt. be very clear here, they would be people watching your show right now. they are people who have their own business, trying to get ahead on their own, paying their own way on insurance, right? and their costs when through the

roof in the independent market. why? because they were required to have a soup-to-nuts policy that every required everything from maternity to drug coverage. maybe they didn't need that. so there was absolutely no flexibility in this plan. i got to tell you, the republicans would be good to point that out right now, to talk about how the other parts of their plan, they have a one, two, three, step plan. how will those second and third tranches change, how will they impact the overall effort to fix health care which is so complicated? charles: the only problem with the one, two, three, plan, even medical members of their own party are not necessarily buying the two and three part of it. >> true. charles: that could be an even tougher sell. tom, getting back to the idea that health care insurance should be something that the federal government is in control of, is it too late to roll that back? is it too late this is something that would be better if the federal government wasn't involved at all? >> that is a great point.

what republicans are trying to do is in fact very difficult. they're trying to roll back a new entitlement program. looking at this, they would have been better off had they beat obama in 2012, because what happened over the past four years is that this is now become ingratiated, accepted by the public the government is involved in health care. so for republicans to say that they're going to roll back some of this coverage and that people will, either have more choice, democrats are able to say look, they're losing coverage. that is a very tough sell. >> yep. >> it will be tough sledding for them. to emphasize, their strongest point, status quo is unacceptable. people know in their own lives across this country that the status quo obamacare had big failures as a part of it. if they continue to emphasize that. they might be a i believe to get people to sign on to making changes. charles: emac, the fact that people who have used obamacare hate it the most.

>> yeah, that's right. tom makes an important point. i think that basically obamacare's main effects were to put more people on government welfare via medicaid. that will be really hard to dial that back. i don't think they will. it basically has that effect and other main effect was basically caused people to not afford insurance, to be able to buy insurance on their own. charles: of course. people have plans, guys, that they had a plan on paper but they couldn't use in reality. >> that is a good point. we have to talk about the quality of care. are you getting care you thought you bought. charles: if you can't afford the he dough duckable, you can't go to the -- deductible. you are walking around with an ailment you would walk around with anyway. we leave it there. we almost solved it and almost got there but maybe next time. thank you very much. meanwhile the president is expected to hold phone calls on health care issue with anthem ceo and health and human

services deck tear tom price. late -- secretary tom price. he is later slated to peek with house majority leader paul ryan and majority leader kevin mccarthy. i have the fallout tonight on "making money with charles payne." tune in in. some of course can be attributed to big storm here in new york. a lot reflects investor anxiety sitting on the sidelines ahead of tomorrow's fed decision and the dutch general election outcome. the russell 2000 dipping below the 2016 close. it was best in the winter post president trump. that is one people watch as an indicator. it is one of the top performers since the election. the rally has stalled with anxiety building up. the white house, comments on the new cbo score expected shortly. more on that and the president's economic agenda. we've goat it all for you. please stay right here.

we'll be right back.