lou: charlie we have five seconds. i just want to say thank you. kennedy: tonight the battle over trans-budgets can libertarians get behind the plan? plus john mccain accusing fellow republican senator rand paul of working for vladimir putin. so who in washington has been working for the russians in attorney general jeff sessions now suggesting pot is nearly as bad as heroin. what does that mean for states rights, personal freedom and logic. which is which, time to set it off. the president has proposed new budget that takes a machete to the epa the state department and the arts while bolstering defense and homeland security and the ink is already smeared

from democrat tears for the president continued his eye told you so tour in nashville last night where he addressed immigration and health care and of course the federal government that has spent itself into static corpulence. >> we are proposing a budget that will shrink the bloated federal bureaucracy and i mean loaded. kennedy: freedom loving cost cutters and no government that leans is less mean squealed in approval as proposed cuts to an entire department like the national endowment for the arts a cultural category that should never read a victim of the government's immoral and subjective whims. the government has killed the arts. liberation the equals reanimation. the epa taking a chainsaw the budget. 31% decrease and that adds up to 3200 jobs lost. where can these out of work

people go? to the pentagon. the military will get an immediate 10%, 52 million-dollar boost spending thrust doesn't add up to revenue neutrality and that has people like kentucky senator rand paul up in arms. >> why should we vote on a budget that doesn't represent our conservative views? kennedy: he said that in january but the mentality has gotten from senator mccain. he thinks it doesn't blow up enough stuff so mccain treated this morning quote defense budget proposed today will not be sufficient to stem damage inflicted by years of budget cuts under obama white house. a catfight in the senate. wherever the ball rest of the political wheel is out of the president's hands. he attacked up the bloody

hatchet to rip rude conflicted republicans in can it sonic --c. if president trump can charm the pants of the lawmakers they won't deal to afford new clothing if the donald has his budgetary way. you are not the host and i'm glad i'm kennedy. so does the present budget proposal cuts money from and old money to all the right place places? brand brand producers as it are faster of economics at kings college right here in new york city. let us break down this budget. for cost cutters there is some good news here. providers of foreign aid take a massive 31% pack to the budget.

>> non-defense non-discretionary funding for discretionary funding there's a big cut in some agencielike the state department like health and human services like education department. that helps to offset some of the increase in the defense spending that began as you said it's only part of the budget. 70% of the federal budget is not in play in this budget that the president has proposed so that means 90% of the spending increases over the next 10 years we are not doing anything about. that's why this budget is only a logic in the loosest sense of the term. kennedy: that discretionary spending seems important. it feels weighty and far left as it feels catastrophic. >> it goes after this multitude of the astounded at the number of areas the government is subsidizing or in fall thing in people's lives. the average american will look at it and say i had no idea. that's why think it's important to put a stake in the ground and

say this part of the government or discretionary part of the government is bloated and we need to cut it. we have 100,000 more people today working in regulatory roles than we did 17 years ago. 100,000 more people. kennedy: 100,000 more, that's not total. what. >> just in this millennium and that's what's crushing the economy and that's with making it hard started business and if you want to help people it's not government programs if getting rid of the bureaucracy so businesses can grow and invest and hire people? kennedy: that's the ultimate hoax that some of this cutting getting government out of the way does spur real practical economic growth so what do you think the budget gets right? >> i think it does a nice job of offsetting the defense increase. you could argue whether you want to have defense increases are not releases natural on that account. the issue is we are not going to get the real details until mid-

may so we don't know what the president's going to do on entitlement spending and as a rookie but i do like that he's standing behind his word in terms of saying we want to go after federal bloat and there's a lot of in these programs. everyone of these departments is going to get a hard look. we are going to cut double-digit cuts in some places which is really important. kennedy: and quite a few departments. i'm surprised to see that and i'm wondering how tom price feels about the multibillion-dollar cut through his agency when he is out there trying to felt this replacement plan for obamacare. >> i think the truth is they know when this goes to congress the changes quite a bit. everybody in congress has a vested interest in one of these programs at the present is going to get his increase in defense spending they are probably going to say find that you have to make sure to not cut this program that i care about. a lot of these departments know they aren't going to get cut. the final word can't be said until we see what happens.

kennedy: we think the national endowment for the arts and humanities will get out alive? >> those are on the chopping block all the time with republicans. they have always made it out. i don't see why they won't make it out this time. i agree with your point why are we fighting these things at the federal level? we could do a better job in these areas by not getting the government involved. that said i think the likelihood is good that they will stick around. kennedy: we will see if the president can survive the pain of the massive budget negotiation. thank you so much brian. the ink is barely dried on the president's proposals by this already setting up a big partisan battle on capitol hill. >> we ju got the president's budget submission just this morning so this is the beginning of that step. what i am encouraged by is the notion that we are going to begin rebuilding our military. >> this budget is not a statement for anyone if president trump has shown that he does not value the future of our children and working

families. it fails to recognize the health of america, the strength of america does not just depend on our military might. kennedy: whenever she talks about morality and government spending i have such a violent internal reaction that involves violence keeping. even with control of the house and senate the budget plan is no layup for the president. senate majority leader mitch mcconnell has signaled he opposes parts of the plant particularly deep cuts at the state department so will this get passed or is it dead on arrival? joining me now is national review reporter greg gutfeld and jamie weinstein the man in the middle host of the jamie weinstein podcast contribute in the guardian host of buck saxton with america now a radio program you must interface with. i want to talk a little bit about the state department cuts because chris coons said if you

increase military spending that sends a message to the world that you are using your might and giving up on diplomacy by making deep cuts to foreign aid in the state department. >> onef the most senior state department officials i've ever had the privilege of having as a mentornd friend, people who work for the state department care as much about diplomacy as they did about who would pay their travel expenses and how quickly they would get paid we would have peace in the middle east for there's a lot of bureaucracy and waste. it's an organization that i think is summed up by the motto we were here prefer the president we will be here for president. presidents come and go in the departments forever. how deep these cuts go i think there will be negotiation on this. clearly i believe the entire budget proposal is a statement of policy preference as your previous guests pointed out. doesn't make much difference in terms of my members. we are heading towards financial libyan even if we do everything trump says we have to do in this but it does establish an interesting argument.

first and foremost it shows liberals across the country spitting out the cappuccinos as we cut the grove. it makes me sad. kennedy: thomas massie made the best pointed to cut the department of education parents will send -- still syndicates a skull and also if you make cuts to the epa people will want a clean environment. you believe that or do you think government is the only thing keeping us from being destroyed by our own causes? >> at think of these cuts are implemented i don't think the world will be dead. i'm pretty sure we would go on but again the key point here is th is a lot noise. u have a lot of republicans who say let's cut the foreign aid budget and democrats say let's raise taxes. neither of these things solve the long-term fiscal picture. the entitlement reform, a small part of the budget that is not determinative whether we fix our

fiscal picture. entitlements entitlements entitlements and donald trump does not want to touch entitlements. kennedy: i think democrats and republicans breathed a sigh of relief every time a president says that. basically we are never going to have a meaningful budget that actually takes us out of financial crisis. >> we really aren't especially as you mentioned we are spending the same a lot of money and with the hikes in the military over and over again everybody knows the department of defense is spending way too much money. they spend on things they're not supposed to spend it on. that's an established fact. no matter how much they spend they will get more. the more money you make -- i spend money and i didn't do that when i was a major is -- waitress. >> they should reform the appropriations process for the ways than the money is more important and by the way

sequestration was when they were finally going to cut and republicans were willing to say we will cut defense. no they weren't. kennedy: hillary clinton some other thing she would do if she were elected president was reverse sequestration. >> spending money is popular. kennedy: spending money on defense is popular with both parties now. there's no question you have to try to not spend a thousand dollars at the defense department but if you are going to cut the defense budget you have to have a debate over their mission. if you are going to cut the defense department you have to reduce america's role in the world. that's where the debate have to begin. that's where the debate should begin. you can't say do what you're doing now in the world and we are cutting back your defense. kennedy: i feel the same way i do about defense as they did nancy pelosi and it's immoral not to support the soldiers and marines who defend this country by misappropriating so much money in the defense department. think the money is misspent. i think there are so many duplicate programs just like

there are in every other layer of federal brocker c.. >> i agree with that. we do have special obligations. whenever you see this chart by whichever opposition parties making a point about long-term spending we provide the world's protection and -- kennedy: maybe other people should be protecting shipping lanes. fred is exactly right when he talkabout it. >> in the south china sea we will get to say who comes and goes here which would be a problem in the world. >> i'm afraid about world where china has a disproportionate power in asia. kennedy: i think you are in this framing the argument. i don't think america takes a backseat or america's a weaker nation because we are smarter in how we spend our military dollars. it's more about sanity rather than here's more money, take it,

take it. kat and i were both in the military for a long time. you're not talking to a couple of skirt wearing civilians here. >> anyone who says there is not ways to ask a roomful of government employees have many fewer analysts? and i was one of them. we are all looking at the same information. how many reports of the think the secretary was going to read? not as many as these analysts are producing i promise. kennedy: maybe we can afford some cut tax. >> we shuffle a bunch of paper around and go to meetings. kennedy: we have so much more to discuss with his brilliant panel and a little bit later john mccain and rand paul have been at odds on t nbeofues for quite sometime. we'll talk about howhe arizona senator added fuel to thfire

and it walls vladimir putin. a big push for republicans health care bill. some hope the plan never gets some hope the plan never gets close to the president's desk.w.

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kennedy: welcome to president trump back doing what he does best and love so much whipping his fans into a frenzy and last night it was selling the public on the american health care act. a house republican leadership is planned to replace obamacare of course briga plan hasn't interrupted start where president trump said it's all the fault of democrats. >> if we submit the democrats plan, drawn everything perfect for the democrats, we wouldn't get one vote from the democrats. that's way it is. kennedy: the plan has its fair share of g.o.p. detractors as well with dozens of republicans in congress concerned over the bill especially in the senate. but there is good news for the white house. approval from the house budget committee today, narrow vote 19-17, three republicans defecting so how far away are we from a full repeal and replacement text may ask u.s. news editor at "the wall street journal". what's more problematic for this

bill right now, conservatives in the house or the moderates in the senate? >> it's got to get down to the house first and when we heard speaker ryan speaking today on the issue he said my job is to get this bill through the house and i don't want to amend it. the senate can do that itself. kennedy: they shouldn't consider this the final product he also said. this bill is a work in progress. they will obviously amended in the way they choose but so far a lot of the members of the freedom caucus are not on board and thnumbers that the president needs in order to pass this in the house. what is thbiggest umbling block right now for its actual passage? >> they their two factions that are competing for what they want the bill to do and there are those where the budget hawks who want to make sure that it is coming in with lower costs and an particular getting that medicaid cost off the books quicker so they want to have a

faster plan which would allow them to put a fixed amount of money to the states where the then reimbursed for the actual cost. kennedy: which wasn't present in the initial version of obamacare but now there is a form of medicaid expansion as it continues going in his ryan version. the medicaid for a minute the expansion allowed under the affordable care act has the head of government reimburse the states for the cost of those new people insured under the medicaid when they expanded the eligibility is now rolling it back they want to give them a fixed amount of money. the states would have more flexibility in deciding whether they would spend that money but it also means the federal government would be on the hook for a lot less dollars going to states to pay for this so would mean less people receiving care. kennedy: we talked about the budget at the top of the show but this is one way of tackling entitlement reform. you have to do it anyway and that's the only meaningful way to get this deficit in check.

i want to talk a little bit about the cbo report and the way the bill is set up younger people will have their greater incentive to buy insurance because it's going to be cheaper for them because it's age tested than means tested the way obamacare was however older people will end up paying more money for insurance and they are the ones who vote. doesn't that created some problem? >> that's a real conundrum. one of the things people didn't fully appreciate that it showed premiums coming down for younger people which would hopefully bring them into the pool to offset the cost but on the other hand exactly right when you start scaling back medicated scaling back some of the care provided for the sick and elderly you are also removing some of the care and the promises that were made to older constituen that ha typically supported trump as a republican so that's a real challenge for them. that's got many people in the house and senate a little

concerned. kennedy: that could be problematic because you have older people don't have much money paying higher premiums however rich people are subsidized with the tax credit. the last point here they are making a big issue out of this 24 million people who are losing insurance, that is what the cbo is saying but there's a big difference between opting out of insurance and losing insurance and i don't think the distinction is being made properly. >> this is a good point and it's something speaker ryan has tried to make several times. the reason people might end up having less insurance or not having insurance at all at those numbers is because they are given a choice. the g.o.p. plan takes away the mandate that said obamacare this is you got to have insurance or you pay a penalty so right now that is forced a lot of people into care. many people may not want to have the care. on the flip side of the argument the cost may be going up so that may be another reason why people would opt out because they can't afford or don't want to spend

the money that way. kennedy: maybe they are waiting for basiri were insurance plans are available across state lines and they will find a plan that only covers catastrophic illnesses and events. >> that's part of the challenge because that's not inherent is coming later and the other parts of the have tried to get everybody to understand the long-term gain, you have health and human services secretary price out there saying there things we can do within our powers of oversight to allow states more flexibility and freedom so they are trying to make sure all these ways they are communicating with the long game so people get on board. kennedy: we will see what happens with this eventually. it's an emotional issue and politically toxic for people on both sides in who knows where either party will fall. thank you so much. coming up amazon planning on hiring 100,000 people by the new year. the report says those jobs will leave many more out in the cold.

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kennedy: as we mentioned earlier this month, the bank of england predicts robots to take the jobs of 80 million people in this country, roughly half of the workforce. is that the price we have to pay for a truly free market? welcome, scott martin. >> and human, by the way. kennedy: that's what they all say. scott, welcome. i read this report and think that market watch are being a bunch of his tear is. am i wrong?

>> no, they are upping on a trend i think started before robots got into places like amazon. they have 50,000 people working in their warehouses because retail is dying anyway. robots have provided better efficiencies. to me amazon is creating efficiencies and opportunities for this economy and not taking away from it. kennedy: as i read this analysis, it's that we are obligate to go to malls and if we don't people at macy's and the limited will lose their jobs. i think malts are archaic. i think these companies have seen this coming for 10 years. they should have adopted and provide something that you can't

get in an online experience which is something tactile and customer service. >> look at lost productivity. you have that lost productivity of going into stores and waiting in line and deal with a human. i buy my gum on amazon. but it's an add-on item. when you buy things like gum or a ping-pong paddle, you add other thgs tyour cart that create economic activity that may nootherwise exist. kennedy: amazon has various vendors. you oftentimes have a choice of the various vendors you can buy from. so they helps these small companies who adapted to changing trends.

>> a lot of companies have talked about the boon amazon has created for them. there are more robots working in our workforce. but it's still a human-type of base. the robots can probably build themselves and come after us and kiss, but that's 5 or 10 years down the road. kennedy: someone has to service the robots. customer service is irreplaceable. a robot will never be able to do that. it's companies who have figured out how to use technology. those are the ones who are winning, and there is plenty of competition to be had to give amazon. thank you for your time. i appreciate it. democrats accused the trump administration of helping vladimir putin. the white house claimed hillary

clinton and nancy pelosi did the same thing. who is accusing whom of what? that is next. afoot and light-hearted i take to the open road. healthy, free, the world before me, the long brown path before me leading wherever i choose. the east and the west are mine the north and the south are mine. all seems beautiful to me. to take advantage of this offer on a volvo s90, visit your local dealer.

kennedy: the political battle between republican senators john mccain and rand paul just got up to 11. john mccain accused rand paul of being in cahoots with vladimir putin. >> the senator from kentucky is working with vladimir putin. kennedy: that has to do with rand palms objection to a bill that would advance mont the onef mont --. the country of montenggro. >> this is a strong case for term limits. i think he's a bit unhinged.

buck, i'll start with you. there is acrimony. we can get into the personality issues. rand paul makes a good points. we don't need every unstable country in nato. >> there is hello surf errand paul, then you want to send us to bolivia? in terms of montenegro, yeah. but they sent a handful of them. look at this from the perspective of not only is it it anncreasin our defense obligation. there is a messaging issue, we are adding a country into nato and the nato countries need to

pay for for their defense. they have an obligation to pay more. but when this becomes an issue, it's how russia views this. this much great sensitivity as there was with kosovo to the u.s. and picking off and pulling into the alliance from the russian perspective. they view this as an aggression. to say someone is doing putin's work. this is like saying someone was a fascist.tin's work, you are a fascist. kennedy: from fascist to racist to putinist. >> is he say rand paul is an aide to vladimir putin? or is it more subtle? this is while for the debate. you cut off debate when you call someone a lackey of putin. it's not by bringing montenegro

into nato. russia is trying to push the boundaries here. and you have to at some point say this matters. the boundaries and borders matter we are going to push back against this bully and maybe he will take a step back. kennedy: on one hands i respect and admire rand paul's idealism. and i understand the case he's making. i think both senators are being immature. and i also work with senator mccain's daughter. good friends. >> people talking about the military being depleted are the same peoplwho want to get more and more involved. there is a good reason for not wanting to take on a nation as troubled as this. i don't work for putin.

it's -- just because maybe there might be something that works for us and works for them doesn't mean we can't do it. kennedy: i want to thank the panel. a glorious night had by all. jeff sessions says marijuana is almost as bad for you as heroin. no one has ever. no one has ever. i'll ask what the attorney dearthere's no other way to say this. it's over. i've found a permanent escape from monotony. together, we are perfectly balanced. our senses awake. our hearts racing as one. i know this is sudden, but they say...if you love something

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kennedy: marijuana is quote only slightly less awful than heroin. that's not from a 1980s, drug commercial. that quote is from our attorney general, jeff sessions. he claims a plants that's used by americans recreationally and medically, is almost as bad as a drug that has destroyed lives and families. he said i realize this may be an unfashionable belief in a growing tolerance of drug use.

i reject idea that america will be a better place if marijuana is sold in every corner store. katherine mangu-ward is with me. jeff sessions is saying marijuana is only slightly less awful than heroin, and he refuses to listen to the evidence. and there is empirical data that shows there is a 24.8% drop in heroin and opioid overdoses in states where there is legal recreational and medical marijuana. katherine: the central point's making that it will not be a dramatic improvement if all of america's heroin users said mayor is super convenient, i guess i will switch to that. it reminds me a lot of

anti-smoke advocates who are also anti-vaping. but mostly i like that he's like the kids these days their fashionable drug legalization. kennedy: that's not what it's about. when you talk about decriminalizing and legalizing even medical marijuana, you are talking about now people have access to its ingredients and its side effects because they are there on the label in safety-sealed jars kids can't get into. th hern there might be substances that could kill you quickly. katherine: the idea that the risk of drug use is now predominantly a legal risk in the case of marijuana, and we have a great experiment to see what happens when you remove the legal risk.

what's left to reduce the risk? profile of marijuana use would be for jeff sessions to get on the side of legalization. kennedy: you are also -- that's why senators like lisa murkowski and rand paul, just about he through maker from every state where recreational and medical marijuana has been voted in, they implored the president to not turn this into a federal issue and keep it up to the states with what they want to do with marijuana legalization. >> this argument applies to many different drugs. in colorado it includes things like very, very low-dose products. something you hear from older people. the marijuana these days is so strong.

the kids don't know what they are smoking. you know what would be great? labels. and products for theme who only want to consume casually. kennedy: maybe somebody wants to alleviate pain and anxiety. can a watermelon spontaneously combust in someone's backykykyky

kennedy: when you tall asleep and you get stuck in the walls in your house. this the "topical storm." topic number one. hiewnls watermelons. they hated each other sincth dawn of time. no one is quite sure how it got started. but one thing is certain it hasn't ended. the backyard scientist struck the latest blow. >> 3, 2, 1 schap oh, my god, dude. >> that's 20,000 volts of

electricity sent through a watermelon. electrokiewght a defenseless watewatermelon has caused them o strike back against their attacker. >> show him who's boss. kennedy: right in the baby maker. topic number 2. you are so pretty. beauty it turn out is in the high of the beholder. but what if the beholder is blindfolded, the eyes are covered. blindfold makeup challenge they call it. one woman gets blindfold and asked to put makeup on another. these two sisters are wonderful girls. couldn't be closer.

>> no dragging. >> leave me alone. i'm not going to let you mess that up. >> we are going to have a problem. >> stop talking. kennedy: pretty face. such fire, ladies. look how well men do during their version of t blindfold challenge. right in the baby maker. topic number 3. there is so much infertility in tonight's "topical storm," we'll depopulate by the time the segment is over. >> michael open. >> that's me.

>> is that your real name? >> but having the same name as two artificial intelligence celebrities. that's a waking nightmare. that's alexis siri seize it. she -- seize it. -- she it. she says her co-workers, friend and her family all tease her and speak to her like a robot. but i pose this question. how do we know alexis siri isn't two robots linked together. here is what it looks like when she gets home and unwinds. >> hey, siri, i'm bored. >> i will see what i cano entertain you. i like this one. topic number 4.

bring your own anarchy. this life-changing video on board. mr. anarchy says his precious pug loves the storm because there is always an animal to bark at. well, sir, i have got great news for your mutt who is about to go meta. your. hey pug can now bark at himself. here is the video. >> i can totally say. >> it's so funny. he's bark at the tv. "topical storm" delighting dogs and torturing cat lovers. here is a quick montage of sweet cats watching "topical storm."

that one was in the middle of an exorcism. i have a few ideas way wanted the priest to do to that cat. but i guys wasn't consulted. topic number 5. as winter continues slap us in the face with its meaty sauce and hand, it's a nice change from getting punched in ego bone from online comments. it's thursday. time for viewer mail. carbo toiments off, you better check yourself with your cat comments. cats own dogs.

that's it for us tonight. thanks for being with us. special coverage of the kentucky rally monday. >> announcer: from fox news headquarters in new york city the new "wall street week." reporter: welcome to "wall street week." i'm maria bartiromo. some of the biggest headlines that will continue to impact investors. the federal reserve increased interest rates by a quarter%. >> the simple message is the economy is doing well. we have confidence in the rebustness of the economy and its resilience to shocks.