the market really did want to see corporate tax reform and regulatory reform. [closing bell rings] voters can't to see that. i have hope it gets done. i really hope it does. liz: jeff reed, thank you. 21,000, slightly below it. this is a all-time record close for the russell 2000. let me hand it to david and melissa for "after the bell." david: thank you. >> stocks losing steam in the final minute of trading. from a highof 75 points on details we get tax reform and health care and budget. all off the highs of the day. i'm melissa francis. david: seems highs from the tax cut talk is dissipating a little bit. we'll tell you why that is happening. i'm david asman. glad you could join us. busy day on "after the bell." have you covered on the stocks. here is what else we have for you in the hour. the moment both wall street and main street have been waiting for. details of the white house's new tax proposal.

both for individuals and corporations. >> the president is going to seize this opportunity by leading the most significant tax reform legislation since 1986. and one of the biggest tax cuts in the americanhistory. >> our objective is to make u.s. businesses, the most competitive in the world. david: more on this, rare white house meeting is underway right now. all 100 u.s. senators invited for a briefing with the secretary of state, defense, national intel. and nuclear threat from north korea. what is going on behind closed doors? louisiana senator john kennedy will head to a camera to speak with us as soon as he is back from the meeting. melissa: the dow was as high as up5 points. details emerge from the president's tax plan. we certainly didn't end that way. lori rothman on floor of new york stock exchange. lori, what happened in last hour?

reporter: they wanted more, more detail, melissa on the tax plan. let me be clear, melissa, among the wall street traders we speak with today, the tax plan did not disappoint. the dow gave up all the gains, being weighed down by boeing, proctor & gamble, and the companies had earnings a bit disappointing didn't help things. apple one of the big decliners on the dow today. investors are truly optimistic about, element of the tax plan has to do with repatriation of companies with significant dollars overseas. one part of the tax plan overhaul was very encouraging to the folks here on wall street. that's why we saw the russell 2000, which is comprised as you know small and mid-cap stocks, perform extraordinarily well, hitting an all-time high. having said all that i want to direct your attention to hospitals and medicaid insurers because they declined as health care reform is back on the

table. we heard from powerful freedom caucus, group of lawmakers are prepared to support the revised health care plan. support that weighs on many hospital and medicaid insurers. back to you. melissa: lori, thank you for that. david: treasury secretary steve mnuchin and national economic director gary cohn unveiling tax reform of epic proportions. our own adam shapiro was in the room for it. adam, a little more than a broad outline. i thought it would be more general but real specifics there. reporter: there were real specifics. for instance, eliminating targets tax breaks that mainly benefit wealthiest taxpayers. elimination of deductions people used for local, state and taxes. charitable gift tax deductions. it would lift what some people do when they deduct mortgage interest. the big deal, the lows will be 10%, 25% and 35%.

but they haven't given us income levels. gary cohn was actually in defense of this plan because there were a lot of questions about already reputtals on capitol hill. here is what he has to say. >> we will be back here with very permanent details. we're very confident to where they're going to be we just wanted to get out and give you a broad brush overview where we are. the president very much believes in taking input as secretary said, over the next month. we have a lot of different discussions going with a lot of different groups that are interested. >> there was a statement of support for the plan from key people on capitol hill. you had house speaker paul ryan, senate majority leader mitch mcconnell but orrin hatch, the senator who is the chairman of the finance committee and as well as kevin brady the chairman of the house ways and means committee, they are key to delivering any of the tax reform that president trump wants. they haven't given details what they like about this and what they don't like about it but we

do have a statement from chuck schumer. now he is a democrat but you can imagine where he stands on this. he said, quote, at a time income distribution is getting even worse in america, the president's outline clearly makes life easier for wealthy and special interests and makes life harder for middle income and lower income americans. it couldn't come at a worse time. one thing i point out, david, secretary mnuchin, treasury secretary, gone out of his way he repeatedly one of the goals, wealthy americans, the people that senator schumer talking about, benefiting from this, wealthy americans will not be able to use tax reform to their advantage and disadvantage of the middle class. so the secretary is very key on that issue. back to you. david: remember all those special deductions very often are designed just for the rich through their lobbyists inside the beltway. so they're getting rid of some advantages of the rich. adam, thank you very much. appreciate it. melissa. melissa: joining me jonathan hoenig, capitalist pig hedge

fund, fox news contributor, former federal reserve author danielle dimartino booth, research fellow at hoover institute, tim kaine. thanks for joining us. tim, start with you, what is your reaction to the plan. >> i'm a little giddy. i'm really happy. this was vague but it was, it was a statement of principles that were really good principles what they're doing signaling to the house and senate, come up with details, would with us. i thought the tone was great. this is early. i call it the second inning of a long game. the white house let us know they would swing for the fences. i was very happy. melissa: danielle, this is big change, there is a lot of simplification in there. while rates are going down, we're ving up painful, it painful to give up a lot of deductions people had. >> i'm a resident of the state of texas. obviously we have no state income tax, but with your high state income tax, new york,

where we are right now, this california, there will be a hotbed of controversy associated with this because people are going to lose tens of thousands of dollars in tax breaks because of this. and i think, it kind of speaks to the 80% of consensus that kevin brady consensus they had among republicans for this bill. but i think there is definitely an uphill battle. melissa: jonathan, i know you're on the side of small government in washington is very wasteful. it is interesting that, so they're going to force states who tax a lot, if you can't deduct those taxes, people are going to leave, businesses are going to leave if you take that away. so really forcing them to pay for that huge government that they have in states like new york and california. >> yeah. if you cut taxes, melissa, i think treasury secretary steve mnuchin alluded to, you get government growth. this is want the president to become aggressive about tax cuts.

if the democrats are tax-and-spend, president trump could be tax cut and spending cuts as well. that are details we're waiting to hear about, lower rates, lower corporate rate, specifically elimination of death tax and taxes melissa, on investment, income on capital gains and interest, that is how wealth is created by investing. so president has done real great first step here getting economy roaring once again. melissa: tim, is there any doubt in your mind this is pro-growth plan? that this would ignite the economy, any doubt? >> no. it is specifically designed to boost growth by about 1%. there are a lot of economic studies that show if we could get away from debate about the income distribution, this is giveaway to the tax -- a way to create jobs. if you can reengineer the tax code to create extra 1% of growth per year, you're talking about millions of jobs. melissa: yeah. >> you're talking about a bigger tax base. i think point is right. equally playing field between high tax states and low tax states and not giving those high

tax states free reign on national dime i think it is really smart tax policy they're signaling here. melissa: yeah. danielle, is there any doubt in your mind would create growth? >> we've seen reversal or 85, 95 point in the dow you am looking toward the bond market. it is not buying into the plan right now. melissa: why do you think that is? >> i don't think, if you listened to press conference and questions coming up, and "new york times" coverage, immediately after, and scrutiny on -- melissa: negativity. >> trump will benefit. i think bond market is reading through simply to the amount of pushback that democrats are going to introduce here. melissa: interesting. jonathan, go ahead. >> well, i hope trump administration will can defend tax cut for wealthy. wealthy pay majority of taxes in this country. you know what? cutting their taxes benefits the economy. we need to see tax cuts but spending cuts as well. that is how you can placate the democrat show it will not add to

the budget deficit or debt. melissa: all right. good stuff, guys. david. david: if it goes through a lot of people move from new york to texas. >> true, the door is is open. david: thank you very much, thank you, danielle. can president trump get it through the senate? david macintosh, club for growth president. i emphasize the title of your organization because this is really a growth package, is it not? >> it totally is. out of the ballpark a great tax package. it will create trillions of dollars of growth in the economy and, and millions of jobs. david: david, for all the skepticism about whether it would create growth, everybody's holding they're head, all democrats are holding head well add to the deficit. when have they cared about the debt and deficit over past 10 years? it has grown enormously under their control. their calls about wore remembering about the debt sound

a little like crocodile tears. beyond that look into 1980s. what happened. in 1983 the reagan tax cuts kicked in. the same year they kicked in, 1983 economy grew 4.6%. next year it grew 7.3%. every other year of the reagan administration grew 3.5%. it has been proven to work. >> it works every time, we'll get 3, 4% growth rate out of this. by the way, when i was in congress in the late '90s, we did a similar, not as big of a tax cut, similar type of tax cut, it balanced the budget because all of that growth meant there was more money in the economy, and therefore more taxes to be paid. david: the other thing is to jonathan hoenig's point, it is good for the entire economy. yes, some rich people will get richer because their tax rates are going to go down. of course they won't get deductions. some pay end up spending more but what happened during the reagan administration, a good

similar, a lot of people are saying this looks a lot like the reagan tax cuts. the rich got richer by about 12%, yes, top 20%. but the poorest 20% also increased their wealth 12%. it wasn't only good for the rich but good for everybody else. >> let me tell you very good for the middle class. first of all the job opportunities and pay increases come from this. but second, most of the way the benefit of this tax cut comes about sip creases in the market as corporate values go up. david: yeah. >> they're able to bring their trillions of dollars of investments back here into the united states. david: yeah. >> american middle class owners in their 401(k) accounts and in their retirement accounts, they're going to be the beneficiaries of this program. david: okay. >> it is tremendous -- david: i have to ask a quick question, david, before we go and it's a political one. of course the democrats are against it.

some troglodyte republicans are against it because they're pencil personners, they worry about balancing rather than growth, what are the chances realistically getting through congress? >> i think this is 80% chance it will get through. david: wow. >> it will be changed along the way. it's a very good plan. republicans figured out how to do it without any democratic votes, using budget process. and if a republican can't bring themselves to vote for this type of tax cut bill, they're probably not really a republican. so i think it is going to pass. david: david macintosh, club for growth. thank you very much. appreciate it. melissa: another busy day in washington of the senators at the white house now for a briefing on the threat of a nuclear north korea. this as the u.s. is moving an anti-missile system to the region. we'll hear from four-star general jack keane as well as louisiana senator john kennedy who is the at meeting right now. david: house republicans may finally on the same page on health care bill.

how soon will we see a vote? late details from capitol hill. melissa: congress could come together on a budget deal to avoid a government shutdown but are we risking national security in the process? more on that coming up. >> two things they have to do. first we need a border wall. without a secure border, the border is just a suggestion. what are you going to do, put a stop sign? so i liked when my doctor told me i may reach my blood sugar and a1c goals by activating what's within me with once-weekly trulicity. trulicity is not insulin. it helps activate my body to do what it's supposed to do release its own insulin. trulicity responds when my blood sugar rises. i take it once a week, and it works 24/7. it comes in an easy-to-use pen and i may even lose a little weight. trulicity is a once-weekly injectable prescription medicine to improve blood sugar in adults with type 2 diabetes

when used with diet and exercise. trulicity is not insulin. it should not be the first medicine to treat diabetes or for people with type 1 diabetes or diabetic ketoacidosis. do not take trulicity if you or a family member has had medullary thyroid cancer, if you've had multiple endocrine neoplasia syndrome type 2, or if you are allergic to trulicity. stop trulicity and call your doctor right away if you have symptoms such as itching, rash, or trouble breathing; a lump or swelling in your neck; or severe pain in your stomach area. serious side effects may include pancreatitis, which can be fatal. taking trulicity with a sulfonylurea or insulin increases your risk for low blood sugar. common side effects include nausea, diarrhea, vomiting, decreased appetite and indigestion. some side effects can lead to dehydration, which may make existing kidney problems worse. with trulicity, i click to activate what's within me. if you want help improving your a1c and blood sugar numbers with a non-insulin option, click to activate your within.

ask your doctor about once-weekly trulicity. with a non-insulin option, click to activate your within. you may sometimes suffer from a dry mouth. that's why there's biotene. and biotene also comes in a handy spray. so you can moisturize your mouth anytime, anywhere. biotene, for people who suffer from dry mouth symptoms.

david: breaking news. shares are soaring up 5% after-hours. releasing first quarter results for year. paypal revenue for first quarter rose 1%. company is announcing five billion dollars share buyback. melissa. melissa: explosive warning to north korea. u.s. firing an intercontinental ballistic missile into the pacific amid growing threats

from the rogue regime. this as president trump and entire u.s. senate with a rare briefing at the white house. peter doocy live with the latest. reporter: melissa, we were outside senate chamber, bipartisan group, looked like several dozen, we don't have exact count, not everybody came out the same door, boarded heavily guarded buses for a ride down to the white house. there were senators as liberal as elizabeth warren and conservative ted cruz, they were all on the way for the briefing about the latest north korea intel. i had a chance to ask senator john mccain, until very recently was a big-time critic of president trump's foreign policies, seems to have come around to be quite the supporter ever since action in syria posture toward north korea. i asked senator mccain, what must the regime in north korea think when they see basically all of the decisionmakers at the white house, talking about north korea?

this is what he told me. >> what they will think, what they need to think is, that the chinese will stop their economy in every way unless they stop this progress towards acquisition of nuclear weapon and means to deliver them. china is the key to this. reporter: are you expecting president trillion to try to get all 100 on board with military action when he drops by? >> that is not the purpose of this briefing. the purpose of the briefing, tell us the intelligence we have and options that we have. reporter: since most of the information if not all of the information these senators are being presented with at white house right now is going to be extremely sensitive, we probably won't hear exactly what they saw and what they heard. it says a lot they're being briefed by the secretary of state, rex tillerson. extremely rare high level briefing lawmakers, extremely rare to have meeting like this on the white house ground and

auditorium there. because they have facilities like that here at the capitol. senators took a field trip on busy day to the white house grounds. even detail next couple minutes. melissa: really interesting, peter, thank you for that. david: learning a few details right know. some breaking news on that, here to analyze retired four-star general jack keane, fox news military analyst. good to see you. >> good to see you. david: one thing coming through we're getting word of, they are looking to put north korea on a lis of state sponsors of terrorism. >> shawl thing. should have been done before. david: what is the level of threat? has there been something 457, besides missile tests that has happened over past couple weeks to really ratchet up the threat level? >> what really happened with kim jong-un, he departed from his grandfather and father. they brought nuclear weapons to

the peninsula, north korea. ostensibly for one reason, to preserve the regime. no one will attack us, nuclear weapons. what kim jong-un did, began ballistic missile program, intermediate and intercontinental, that would deliver a weapon off the peninsula, reach our allies in the region and reach the bases in the pacific and reach continental united states. he began to accelerate that testing. he intend to use it. that is what has got everybody's intention. david: so far we see missiles go up. a lot don't get very far, they fall into the ocean. how soon before a realistic threat they hit the mainland? >> they have about 1000 missiles right now. exporters of missiles to iran and pakistan. they know how to build missiles. they're playing with things that

are different. they're playing with submarine missiles that we have, you can't detect them visibly but they're not as quiet as our submarines. what we're seeing some missiles are failing. speculation is fairly accurate speculation we're interfering with some of that missile technology. i think we'll continue to do that we are not going to, david, we are not going to fire at a missile test launch. we will not do that. they will not fire at any of our ships either. david: we may try to you screw it up electronically and internet but not directly. how good are our missile defenses? you know, we, back in the reagan administration, we decided to take on russia's missiles with our nuclear defense system. do we have good missile defense in places like hawaii close to north korea? >> we vimmed missile defense. we have it on our ships. we're putting the thad system in south korea.

they can reach about 860 miles. they knock out a missile in final terminal phase. it is not in the boost phase. we're developing technology to hit it, hit it right when taking off. that is laser technology. we're working very hard on it. we've had some limited success with it. but most of our missile defense is in the final terminal phase. so the thad missile system would not be able to help any of our allies except south korea. something coming into south cree they would be able to knock it down. david: we still have a lot of troops on the ground in south korea. they're not far away from harm's way. ddmz is on the border. are we thinking of beefing up the number of service people there? what is happening with our defense system in south korea? >> we're not likely going to beef it up very much but we have major contingency plans to move u.s. troops, army, marines, air

power into that very rapidly. if war broke out on the peninsula. david: we could move them in quickly. final question, got to be quick, general, we always see this guy with generals surrounding him. they look kind of happy because if they don't they get killed but are, they're not as crazy as he is. in other words, is there any way to work on them, look you follow this guy and you will be dead? >> one of the plans, the chinese will probably try to leverage the north koreans because president xi worked out a deal with president trump. that is huge breakthrough the president achieved there. i always fet one of the things the chinese has got to consider, actually some kind of program to assassinate this guy because he is reckless and fine somebody else who is not as reckless. david: general jack keane, we have to leave it there. thank you very much. melissa. melissa: effect of trump hitting social media. why the president may be the reason behind twitter's huge increase in users. howard kurtz weighs in. the white house unveiling

details of president trump's proposed tax plan. how this will affect you and your wallet. ble. the comfort in knowing where things are headed. because as we live longer... and markets continue to rise and fall... predictable is one thing you need in retirement to help protect what you've earned and ensure it lasts. to specialize in annuities & life insurance. talk to your advisor about a brighter financial future. :

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.

. melissa: the trump bump shares of twitter ending the day up 9% after reporting it added 9 million new users in first quarter of 2017. the company attributing the increase to having the political leaders of the world quote, unquote on the social media platform making it the go to source for news. with me now is howie kurtz. it is interesting they reported they added 9 million users and president trump added 8.9 million followers. of course, that would mean every person that followedim knew this month hadn't been on itter before that. so, of course, i understand the fault with that logic, but still is interesting. what do you make of it. >> send donald trump a gift basket or one of the little

birds. he provides zillions of of dollars of free publicity by his use of twitter. the company has structural problems, in terms of holding onto advertisers, hold know onto users, very fortunate for twitter to have a president who sees this as a direct connection as a way to go to the media. melissa: they had more resurrected accounts, maybe that's a more meaningful metric, they had accounts that people abandoned. that happens to a lot of us, you go somewhere, open up account and get bored with it and leave it. this time they had people reviving when they hadn't been there before, it's an engaging conversation. >> and donald trump as a candidate was so high-profile on twitter, it helped the company, journalists on twitter and has become a major go to source but one that struggled to make money. now that he's president, people felt got to react, remember the old password.

melissa: it's interestingly, president trump's war with the media doesn't seem to be benefitting anyone, they always said we're doing better than we were before, whether they're for or against him. if you look at, for example, the "new york times," added 276 new digital subscriptions in the fourth quarter, the failing new york times is probably one of his favorite targets? >> maybe not so failing. look, if you are opposed to donald trump, you have a great big target, audience is engaged. everybody's ratings and clicks are up. trump makes news every single day, so this war, and it is a serious war does, benefit both sides. especially when it comes to the bottom line, melissa. melissa: interesting with social media and the media and people taking pictures and posting, you really learn more about all the other journalists out there. cbs anchor dale king, for example, was criticized or asked about her impartiality when it was revealed she had

gone on vacation with the obamas. she stated she went on vacation with friends. she was covering them, what do you think? >> she interviewed president obama a number of times while he was in the white house. she donated to the democratic party. she is the co-host of cbs this morning, major network morning show, and the appearance, the optics are awful when you are in the public eye as a media figure, you can't say it's not political, don't read anything into it, it does raise questions, and she needs to recognize that. melissa: interesting, howie, love having you on. thanks for coming on today. >> thank you. melissa: "mediabuzz" host howard kurtz. david: great show. scrambling to avoid a government shutdown, republicans offering a funding deal, no money for the wall directly. what the latest proposal could mean for one of president trump's biggest promises? melissa: a federal judge blocking president trump's

order on sanctuary cities. paul babeu, former pinal county sheriff, i know i said that wrong the last time, the county. sounds off next. >> the president has the full authority to do what's necessary to protect this country and to present grant money in a way that he sees fit. when heartburn hits, fight back fast with tums smoothies. it starts dissolving the instant it touches your tongue. and neutralizes stomach acid at the source. ♪ tum -tum -tum -tum smoothies! only from tums

. melissa: the revised plan to repeal and replace obamacare receiving support from a key group of republicans.

connell mcshane is in washington, d.c. with the latest. connell? >> reporter: hey there, melissa. the freedom caucus does seem to be coming around, the mcarthur amendment talked about the last few days here in washington. essentially would give more power to the states. now it's possible, possible that we see a vote on health care by the end of this week, but only if, and this is important, there are more moderates that can be convinced. still work to do there. one thing we will see for better or worse by the end of the week is movement whether or not the government will keep up and running after the deadline is friday at midnight. that the point, all indications, everything we're getting is a deal is getting close. it's not there yet, we had an interesting development earlier today, involved the house speaker paul ryan and his caucus. he met with the republicans on capitol hill and when they met, we're told health care was the main topic, not government funding for what it's worth, and after that meeting, speaker ryan came out and said this

about the budget talks. >> we're getting really close, the administration, omb, among about appropriators are down to the last final things. we're making good progress. obviously, csr's, that is not in appropriation bill, that's something separate that the administration does. we're very, very close on everything else and now getting down to the final details. >> reporter: csr's is an acronym for cost sharing reduction payments which would keep obamacare insurance markets up and rung. speaker said they are out as you heard, the democrats want them in. that is not a deal breaker in all this. the bottom line, since word got out the other day, the white house was willing to bend on the waterfall. they still have to get it done friday at midnight. melissa: we will see, connell, thank you. david: here to respond is paul babeu, former pinal county, arizona, sheriff. good to see you.

>> good to see. >> you are you sad to see direct funding for the wall appears to be out of the budget? >> not just me, i think most americans that have been counting on this. this is the core promise of the president and the congress who's elected also by the people, that's their job is to fund this mandate, and this isn't just about illegals coming across the border and the drug cartels we're fighting. this is a grave national security concern as expressed by secretary kelly and countless national security experts. so they should secure it for that reason. david: at the same time, though, sheriff, you guys on the border have been doing well without the wall. i'm told illegal immigration is down over 60% right now. what have you been doing to keep it down without the wall? >> you're right. i can tell that you it's as high as 70%, the reduction, and much of this, as expressed by attorney general sessions and secretary kelly, has everything to do with president trump. not just his election, but his

executive orders, directing i.c.e. and customs and border protection, border patrol heroes, there is no more catch-and-release, everybody is apprehended, process and formally deported. david: there is a revisionist thinking about that. we've been seeing in a lot of the liberal newspapers that know this started before president trump became president, something going on for months, to which you say what? >> well, the numbers prove otherwise. i'm in the business of facts and clues, and the facts here are evidence. 70% reduction because the message has gone out that if you come to the border and you cross illegally, you're going to be apprehended and there's consequences. just the opposite of what last eight years with obama that if you make it to the border, you're home free. those days are done, we have a law and order president now and not only he talks tough, he's actually follow through with

executive actions and real power behind our law enforcement, which is what we needed. david: he's also put out a message about sanctuary cities which i know affects the people on the border sometime more than it does the actual cities which it's enforced. >> yes. david: the judge put out the restraining order on his executive order and the president's executive order to withdraw federal funding from sanctuary cities. what do you make of all this, and will it affect the work that you try to do on the border? >> well, absolutely. and my time as sheriff i can tell you i received federal nding and countless law enforcemenagenci notust from department of homeland security, but the attorney general, and this -- this is real that these sanctuary cities and counties and even the state of california, they have to work in partnership with our federal law enforcement. it's compromised the security and safety of their own citizens, should be in their own interests. however, that carrot, the

federal funding, grant funding is clearly in the realm of the federal government and their authority to withhold that if they do not cooperate and follow the law of this 48 hour hold courtesy hold for i.c.e. david: we gotta go. i have to ask, have you ever known of a criminal kicked out and you seen him come back and told them you got to get this guy to a sanctuary city, and they haven't? >> yes, we've seen it happen here right in arizona, where the vicious criminals released onto the street and they've murdered citizens of our country, and that's gotta end, and that's what we need to have happen now. david: sheriff paul babeu, thank you very much, sir? >> good to see you. thank you, david. melissa: a rare classified meeting at the white house. every single u.s. senator gathering with the commander in chief to discuss a growing threat from north korea. next, we'll speak to republican senator john kennedy who just

left the meeting with president trump and his top advisers. think again. this is the new new york. we are building new airports all across the state. new roads and bridges. new mass transit. new business friendly environment. new lower taxes. and new university partnerships to grow the businesses of tomorrow today. learn more at esd.ny.gov i love hanging out with my friends. i have a great fit with my dentures. i love kiwis. i've always had that issue with the seeds getting under my denture. super poligrip free. it creates a seal of the dentures in my mouth. even well fitting dentures let in food particles just a few dabs of super poligrip free is clinically proven to seal out more food particles so you're more comfortable and confident while you eat. super poligrip free made even the kiwi an enjoyable experience try super poligrip free

. melissa: the trump administration revealing plan for major tax cuts, but how will it be paid for? treasury secretary steve mnuchin is saying it's going to pay for itself. >> we are determined to move this as fast as we can and get this done this year. this will pay for itself with growth and with reduced -- reduction of different deductions, and closing loopholes. melissa: so here now, peter morici university of maryland economics professor. what do you think of that? >> well, i know it will create some growth but awfully hard for a tax cut to create enough growth to pay for itself. the economics doesn't work that way. i have a very expensive education, i know the muiplierand wel get some of it but not all of it. melissa: yeah, is it essential that it does that, that it pays for itself? >> i don't think so.

the corporate tax structure so obtuse and so ridiculous with the high rate relative to other countries, we simply have to rationalize it. the problem getting down 15%, i don't know that we have to get that low. if we got to 20% and with border tax adjustments that would be possible cleaning up exemptions and deductions, that would generate growth without losing revenue. melissa: why don't we just cut some damn spending? >> i would go for that. unfortunately, there are 48 democrats over there, and it's hard to do that with them around, and over in the senate. melissa: i don't know, i think we could go in there and cut spending. i feel the two math guys from goldman sachs could cut spending. maybe what we need is to cut the revenue so that there is some pressure to cut spending? >> that's what ronald reagan did to the democratic congress when he was in. he was burdened with a democratic congress most of the time, and he basically made it very difficult to spend more money. but remember, if you want to

cut spending, you are mostly talking about entitlements and the president said he won't cut entitlements. not hard for me to cut entitlements. obamacare provides free health care for men between the ages of 25 and 54 that don't work and not willing to work, they're not looking for a job! aghast! moderate republicans don't want to repeal that in the replace bill. that's absurd. melissa: the national association of realtors, they had a response and they're not fond of what they're seeing. i'm surprised about that because they did say, there we go, right there. simply buying the tax code will get there by eliminating the incentive for home ownership is the wrong approach. they said they were going to keep the mortgage deduction tax, no? >> they are going to keep the mortgage interest deduction, they're talking about increasing standard deduction which helps low income people.

they don't have to go h&r block, in big cities like new york, low income people can't afford to buy under any circumstances and they rent, and this puts renters on a more even basis. i don't know why renters should be more heavily taxed in new york than someone who lives in philadelphia where it's more reasonable to own a home. melissa: peter, thank you for coming on with your fancy education, we appreciate it. >> not fancy. it was a state university. melissa: it was expensive. peter morici, we love you, take care. >> the reaction for the lobbyists is incredible. melissa: they're still mad. that is amazing. david: a knee-jerk reaction at any change whatsoever is bad. melissa: that's why i didn't understand that response. >> the white house right now is meeting with senators, just broke up moments ago. we're learning the u.s. may be looking to put north korea on a list of state sponsored terrorism. the implications of this and a lot more from the meeting when

we speak with senator john kennedy, who was there. you too, unnecessary er visits. and hey, unmanaged depression, don't get too comfortable. we're talking to you, cost inefficiencies and data without insights. and fragmented care- stop getting in the way of patient recovery and pay attention. every single one of you is on our list. for those who won't rest until the world is healthier, neither will we. optum. how well gets done.

there's nothing more important than your health. so if you're on medicare or will be soon, you may want more than parts a and b here's why. medicare only covers about 80% of your part b medical expenses. the rest is up to you. you might want to consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like any medicare supplement insurance plan, these help pick up some of what medicare doesn't pay. and, these plans let you choose any doctor or hospital that accepts medicare patients. you could stay with the doctor or specialist you trust... or go with someone new. you're not stuck in a network...

because there aren't any. so don't wait. call now to request your free decision guide and find the aarp medicare supplement plan that works for you. there's a range to choose from, depending on your needs and your budget. rates are competitive. and they're the only plans of their kind endorsed by aarp. like any of these types of plans, they let you apply whenever you want. there's no enrollment window... no waiting to apply. so call now. remember, medicare supplement plans help cover some of what medicare doesn't pay. you'll be able to choose any doctor or hospital that accepts medicare patients. whether you're on medicare now or turning 65 soon, it's a good time to get your ducks in a row.

duck: quack! call to request your free decision guide now. because the time to think about tomorrow is today. . david: taking new steps against north korea, president trump's top military minding gathering at the white house for a rare meeting with the entire u.s. senate. republican senator john kennedy was at the meeting, the louisiana senator joins me now. senator, good to see you. how severe is the threat from what you heard today? >> well, it's serious, the president spoke with us a few minutes and turned it over to his intelligence and defense team, secretary of defense, secretary of state, security council. most of the briefing was classified, so i'm limited in the amount of detail that i can share with you.

but i will say that -- and i think we knew this anyway, the threat is serious, i think china is taking the north korean threat seriously, finally. i believe we were updated on the progress that china had made in cooperating with the united states, and i was impressed with that. we're trying diplomacy, but at the same time, the united states of america is preparing for all scenarios and all options. i wish i could be more specific. david: no, i understand, i understand. >> we were told it was classified. david: we're all just kind of curious as to why he would invite in the full u.s. senate for this discussion. i mean, is there something that he needs congress' help with in order to do against north korea? >> i had the same thoughts before we went. now after the meeting, i can understand why the president wanted to do this.

the president spoke, the vice president spoke, the secretary of state spoke, the secretary of defense spoke. we were allowed to ask questions. it was a very solemn, serious occasion, as you can imagine, and i can understand why the president, to bring home the seriousness of this and the significance, wanted to gather his entire top team and have us come over there. i thought it was appropriate. david: you know, and a crowd that size, and forgive me, the things leak like a sieve in washington. some stuff is coming out of that meeting. i don't know how much of it is classified or any of it is classified. one is removing or putting north korea back on the state sponsor of terror, can you confirm if that's true? >> i'm not going to say that.

we were told the meeting was classified. you are right, this place leaks like a sieve, i'm not going to be the one to break the rules. >> i want to switch if i can, for a minute, on the tax plan that was unveiled today. a lot of specifics. they said it was going to be broad, three rates, top individual rate 35, the corporate rate 15. what do you think of it so far? >> i think it's not a tax bill, it's a jobs bill. i think it's going to be the only way to get this economy back to 3% growth which is not superlative, it's supposed to be average. it's the only way to increase productivity in this country and increase wages and create new jobs. i like the idea that the president is talking about not just helping the large corporations but helping the medium and smaller businesses and llc's, llp's, partnerships. i'm anxious to see how the president wants to pay for it. i think it's appropriate to

talk about tax loopholes. i feel very strongly that what we ought to do is allow capital investments to be expensed and not appreciated and i want to talk about cutting capital gains tax and getting rid of the estate tax. david: thanks for being with us, senator john kennedy, appreciate you making the effort, thank you. >> thank you. melissa: the future of fashion, introducing a rain coat for your legs. david: rain coat for your legs. 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.

melissa: well, it's the end of pants as we know it. following on ride of mud jeans. a little leg, but spill protected. david: the pants are made of polly urethane.

they are see through, it is just the pants. melissa: i think they would look good on super models, that is 'it and be really uncomfortable, and be uncomfortable. david: and sweaty. >> we have a once in a generation opportunity to do something big. >> tax reform. >> president will seize this opportunity by leading the most significant tax reform legislation. >> this is his one chance to stimulate the economy. >> the president has focused on three things since his campaign, job creation, economic growth. >> this will be the most dramatic tax reform release