i hope you will join lou on monday. in the meantime good night from new york. >> announcer: from fox business headquarters in new york city, the new "wall street week." gary: welcome to "wall street week," the show that analyzes the week that was and helps position you for the week ahead. trish: here are some of the biggest headlines from the week. you have mixed messages over tax reform and the healthcare bill. stocks wrapping up the week and the quarter in positive territory. technology, best performing sector by a long-shot in the first quarter. you get facebook, amazon, google all hitting record highs in the month of march.

crude mass been down 2 out of the last three quarters. across the pond theresa may is saying bye-bye to the e.u. the lisbon treaty formally states the u.k.'s intention toys leave the european union. negotiations will take about two years. in washington republicans continue to bicker amongst themselves over healthcare. the president also calling out the freedom caucus. and the battles continue on the russia investigation leaks. gary: tom lee and larry pitkowsky are here. we just wrapped up the first quarter. when i think about what happens. the dow was supposed to go up, it went down. the stock market was suppose to go -- up, it went up.

>> i think it is a testament to how much animal spirits have improved. like you see in ceo confidence you are advise, and the rotation that flows into the equity markets. gary: was the flows into equities a surprise? did more money go into he can wits than yo -- even to equitien you thought? >> the pace in the first quarter will be the largest since 2009. trish: that's good news. i guess the big question is, is it going to continue. is this people playing catchup? they said now it's time for me to get in? >> we are primarily stock pickers and value-oriented folks. but people seem to be looking forward to corporate tax bases.

and less regulation and they are starting to extrapolate that. but that's from already high valuations. so if valuations get stretched it's important to maintain one's discipline going forward. trish: we have known for some time now the expectation is lower corporate taxes for individuals. and for their will be less regulation. that's kinds of built in from the day donald trump was elected. if anything, people are worried maybe it's not going to happen. they are starting to feel trepidation as a result of the healthcare debacle. what is encouraging them to still get in? >> that's a great question. there are dollar reversing, oil reversing. high yield and equities are not tracking each other anymore.

but one know, if you do it at the company level you can see optimism. earnings growth will be positive year to year double digits. you have to remember in the last 7 years households saved trillions of doors and none of it went into the stock market. gary: john williams has an aggressive outlook on the the fed trait hikes. >> this view in our various projections, three rate hikes overall for this year seems to be about right. there is upside potential for the economy. maybe we'll need four rate hikes depends on how employment and inflation do. that's what i think. >> the funny thing is, if you

look to back a year that's when we said the rate hikes will happen. a year ago. so the question is now that we are starting to lean towards four rate hikes, that's the real question in terms of what's happening. what do you think the fed is going to do this year? >> our asuch shun is to assume the macro environment around this doesn't change and the thesis makes sense. it seems like you are in an environment where we have come off the bottom on zero percent rates. we tried to have investments within the portfolio that would benefit from higher rates including having a big money market business where they have been waving fees. and if you get rates off the floor, recapturing those rates could be benefit. we do want to have some things that might benefit from what

seems to be a change. trish: if the fed thinks they have to praise four times instead three, that's a good thing. you want the economy to be growing. gar were thanks, larry, thanks, tom. here is a look at some of the biggest market events coming up that could affect your wallet. the jobs report friday, all key economic indicate dwroors watch. a few notable companies reporting earnings. on the political front the senate is expected to have a final vote on supreme court nominee neil gorsuch earn as the democrats promise a filibuster. president trump is meting with the egyptian president monday and will host the chinese president thursday and friday. don't go anywhere.

"wall street week" will be right back. >> announcer: healthcare creating a deep divide within the republican party. quit smoking. but when we brought our daughter home, that was it. now i have nicoderm cq. the nicoderm cq patch with unique extended release technology helps prevent your urge to smoke all day. it's the best thing that ever happened to me. every great why needs a great how. i just had to push one button wto join.s thing is crazy. it's like i'm in the office with you, even though i'm here. it's almost like the virtual reality of business communications. no, it's reality. introducing intuitive, one touch video calling from vonage. call now and get amazon chime at no additional cost.

ing. gary: almost immediately after suffering a defeat for healthcare, the trump administration is pivoting to tax reform. trish: are the republicans going to be able to work together on tax reform? and what would a bill look like that could get through the house and senate? our next two guests are the two most sought-after names with it

comes to tax policy. we have steve forbes, along with americans for tax reform groample norquist. steve, this has been your platform and grover's platform for some time. in light of the lack of savings they were anticipating from healthcare reform, can it still be done? steve: it can be done. one of the things the relationship cans have to do in congress is stop worshiping the congressional budget office. they need to go for a sweeping tax cut, rates across the board. say to heck with the cbo. get it passed. then make it retroactive to january 1. people see their paychecks are getting bert and they set the stage for investment which they need next year. trish: grover, we have

responsibility for future generations, and the concern is the debt is already bad enough and we have to enforce some fiscal responsibility. to steve's point, if you cut tax you will help grow the economy. but are you going to be able to do so fast enough that you will be able to offset some of these burden some expenses? >> the answer is if we have significant tax reduction, there is already an agreement between trump and the republicans in the house. they will take the corporate rate from 35 to 20. these are dramatic reductions in taxes on business, full business expensing, a territorial tax system. on the individual side, death tax permanently gone. the reason why we are having this discussion about whether it can fit weren't cbo numbers

because if they do then the tax cuts can be permanent. if they don't, if you have a more dramatic tax cut and no offset through growth or other tax changes, then in 10 years like with presiden the -- like h president bush, the pumpkin is gone and cinderella's coach is gone. permanent or bigger but not permanent. gary: everyone wants lower taxes. whether you vote republican or democratic, you want lower taxes. when you talk about repatriation, that seems to be the easiest to get consensus on. should we be starting with the the repatriation holiday? a lot of guests have come on the show and they want to make sure companies will want to put that back into the business. how do you make that work?

steve: no tax cut is permanent. we saw that in the mid-1980s. four months later george w. bush was increasing taxes. on repatriation that's a good thing because it pays off right away. i don't ware what they do with the money. pay the out in dividend or invest it. money doesn't day idle. trish: buybacks are okay, too. if you have the right environment, that money will be invested. instant expensing of capital expenses. i guarantee you you will see that money invested. gary: when you look at it and you say forget the congressional budget office. when you bring that money back, what is the gdp pick.

steve: the stock market went up in anticipation of good things. other thing they should push for is a cut in the capital gains tax. we know that instantly means more revenue. trish: was healthcare a big mistake? steve: it was a huge mistake. they had convoluted reasons why they had to do it. they should go with a big tax cut, get that win, then tackle healthcare. gary: grover, do you think the fact that they went for healthcare first that it will impact the tax reform. >> if we don't pass the tax cut it is getting rid temperature it's more than a trillion dollars in spending. it's beginning to reform the

medicaid entitlement program. it's disappointing a handful of republicans decided not to vote for a trillion dollar tax cut and reform medicaid. now we are in a difficult position where we go and pivot to tax reform, we are a trillion short in getting this stuff done. i think we'll double book, fix the first problem because it's too important. then go to dramatic low rates. trish: they are going to try and work on this. of course, we watched donald trump call out members of the freedom caucus. you guys have to be able to work with me or else. do you think he's going to bring them around? do you think the threats of 2018 and not getting re-elected because their constituents get so angry nothing got done will work? >> the challenge for the freedom

caucus people is that they didn't just disappoint he business men in the state. they said 25 of us can get together and defeat anything the republicans want. you know what they are teaching? they are teaching the appropriators to do the same thing. they are teaching the moderates to do the same thing. they are badly damage our ability to function as a party for tax cuts and spending cuts and we'll be paying for what they did for years to come unless it gets fixed soon. they are teaching spenders they can beat tax cuts. trish: thank you so much. don't go anywhere. we have much more to talk about. "wall street week" returns after this. >> announcer: another tax battle is brewing on capitol hill. some legislation towards say the could be a big boon for businesses.

trish: a battle is brewing in washington over one of the most controversial proposals in the tax reform proposal. it happens to be a border adjustment tax. it would strip away any tax break for american companies that import goods from other countries. gash * this week house ways and means committee chair kevin brady told stuart varney yes thinks it's a good they can for american business. >> this is what our competitors use to defeat us. one of the biggest advantage of bored adjust built is to get rid

of the incentives for american companies to keep moving jobs and manufacturing overseas. trish: , steve, i saw you shake your head. steve require's a 20% sales tax that could hit the very people who elected donald trump. they don't need to do it. by putting in that tax, they defeat -- trish: you are thinking companies will keep importing these goods from overseas. steve: the supply chains are complex. a car, even if it's put together in the united states will go up a couple thousand parts because a lot of those parts are imported. the idea that it's a level playing field, just because

europeans shaft their own people having a shy value added tax, we are supposed to imitate their bad habit. trish: you are assuming all these tax willing passed on to the consumer. steve: of course they are. gary: grover you are saying it's a good thing. >> it's part of the overall tax reform package. it's a bored adjust built it's a normal corporate income tax that is bored adjustable. what you do have is this is part after package that fits together that allows you to be permanent it also allows us to go to a territorial tax system which will allow all income from american companies to come back completely tax-free, a permanent holiday it's one of the things that allows that to become possible without setting up an irs police state. do you want the top individual

rate to go down to 33%. do you want full business expensing? if you want those things, it only fits together right now with the change of bored adjust built. or something else that raises $100 billion in a year. if they have something else, we would love to see it. it's not free. gary: grover, what do you say to the ceos who are having a tough time competing with amazon. they say it will be lights out. there won't be any stores in malls and retail shops will have a hard time making any margin. >> the overall tax cut in tax reform is $2.5 trillion tax cut. now, there is a trillion -- a trillion dollars on the border

adjust built on the corporate income tax. it's a $3.5 trillion with the bored adjust built attached to it. all the retailers pay all those other taxes. the idea that border adjust built on consumption is silly. trish: people are smart, companies are smart. if i'm a retailer and i have a billing chunk of my business online? i'm moving out of the country. because that way i can send those goods to the u.s. in an individual consumer could buy them. i was shopping online and i bought a dress. turned out this thing literally came from china. they mailed it from china to me. if you are a retailer do we run that risk as an economy? steve: this an untested tax. you would have to factor in what other countries will do in

response to this thing. either you have this new tax which is a value-added tax or we don't get tax cuts. do the tax cuts. $100 billion a year over 10 years it's ridiculous that we can't do that to get this country moving. trish: the american worker is getting left behind. we need to stimulate the economy. that's the goal of this in part. to sometime slate domestic activity. is there a way to do this where we can penalize in some way, shape or form companies using these resources from abroad while rewarding ourselves. steve: bmw is going to be turning out 300,000 cars in south america. why are we going to muck these supply chains up?

you don't have to do it. a little bit of spend restrainltd in washington will go a long way. gary: thanks for joining us. trish: that does it for us on trish: that does it for us on "wall street week."

trish: that does it for us on "wall street week." at crowne plaza we know business travel isn't just business. there's this. 'a bit of this. why not? your hotel should make it easy to do all the things you do. which is what we do. crowne plaza. we're all business, mostly.

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