>> that's right, the markets are-- need another catalyst higher. it's obviously not the jobs data this morning, it's obviously got to come out of washington. >> everyone is looking at second quarter gdp to see if it's a head fake as well in the first quarter. maria: next week, the french elections and "varney & company." charles payne is in for stuart. charles: thank you, maria. we have a lot of stories, 211,000 jobs added in april, that's a very solid report. the real unemployment rate drops to its lowest point in almost a decade. gary cohn from the president's economic team will join us in studio later this hour. that's a first on fox business interview. meanwhile, house republicans gave president trump a huge win on health care, but democrats taunted them. wait until you hear what they had to say after the vote. another incident on a plane caught on video. this time a family forced to get off an overbooked plane because of their baby's cursing.

we'll explain it. and the fcc tells fox business he's not over looking stephen colbert's rant against president trump. "varney & company" is about to begin. ♪ ♪ hey, hey, goodbye ♪ >> well, those were democrats taunting, i think you can hear it, right? remember that song, na, na, hey, hey, hey, goodbye. they were taunting republicans with that after the obamacare replacement bill passed implying they'll lose their seats next yearment, but the republica republicans-- here is senator rand paul, roll tape. >> this will be the first time

that republicans have affirmatively put their stamp of approval on a program where federal money, taxpayer money is paid to insurance companies, i'm frankly not excited about subsidizing the profits of insurance companies. >> it sounds like you'd be a no vote. >> it would take work to get me to a yes vote. charles: right now i want to go to the jobs report and bring in market watcher john layfield. the last three of four beats have been solid numbers. what's your assessment. >> i agree with what you said earlier, the u-4 number went from 9.4% to 8.6 now, that's a phenomenal gain. we are adding jobs. but i don't want to pour cold water on this, but you had to put this a little in perspective. economists say 5% is full unemployment rate right now, if

that is true we shunned -- shouldn't be at 3 or 4 gdp. i think we lost about 8 million manufacturing jobs to robotics. we're starting to have growth being created in tech companies without a lot of employeesment like you use today see with u.s. steel and places like coca-co coca-cola. it's a great jobs number, but the jobs created since the recession were not as good as they replaced. charles: to your earlier number. u-6 number, most people think it's the real unemployment number and there's room to improve and widen the job base. as far as the good paying jobs, that's the crux of it all, john, i will agree with you. mining added 9,000, in fact, 44,000 jobs since october so we're seeing a key area come back. what do you think is missing then? are you saying that we're in some sort of a shift, a

paradigm shift where job creation as we knew it in the past is impossible? >> no, i don't think it's impossible. you have high-tech manufacturing that's coming back and things like elon must musk with the giga factory and the tech companies. the problem that you have is a paradigm shift, especially in the tech companies. you're creating billions of wealth with a fraction of employees that used to create a billion dollars worth of wealth from. there's a shift and scares me a lot, going forward, the self-driving cars, you're going to take a lot of drivers off the roads in the next couple of years, we've got to find way to replace that. i don't want to be debby downer on this jobs report, it's great and the consumer is 70% of gdp and you're going to start to see wage growth going up because of the fact that we're getting closer to full unemployment, whatever that true number is, and that's a good thing. >> to your point, i think it's like 35 states where truck drivers are the number one jobs. but that will still be five to ten years away.

john, i want to ask you, speaking of things scaring things. what's happening in commodities, oil at a five-month low, scaring people as a proxy for the global economy. are you worried about this? >> no, i'm not. i think there's a range that oil is going to be in. you have west texas shale in the bakken shale that can come on-line so fast. saudi arabia is no longer the swing producer in this. they know longer have the power because they each have that cushion of two to three million barrels of oil they can bring on market. you see that now in west texas. when oil goes up, the west texas oil wells will come on-line quickly. you have a ceiling on oil prices, but i think you you have a base on this as well. i think we're mainly in a trading range with oil right now. maria: i've. charles: i've got ten seconds left. will gas prices come down?

>> it's not a debby dro yby dow you're creating jobs for america i just wish they were better jobs. charles: in fact, you need to stay there because we'll get back to health care for the moment hillary clinton tweeting, shameful policy and morali on behalf of the millions of families tt will be hurt by your actions and she included a link to donate to democrats in swing districts and want to say come in, tammy bruce. she's not the only one. charles: i saw people to go against darrell issa. there are republicans in districts who are now obviously targets. hillary majority in the election was all in california and they know in california they might have some room to move the needle. this highlights how hypocritical and craven they are and really what they've done has been their majority,

their power, their money. while with obamacare they destroyed our access to health care. people may have had health insurance, but we know, and this is when they're singing, you know, na, na, na goodbye. they're thinking that americans didn't like a big thing to happen. what we didn't like was the fact that they lied to us and they ruined our health care. that's what impacted the democrats. their reaction to what the republicans are doing are like an arsonist laughing at firefighters as we're trying to put out the fire. so, this is what the democrats still don't understand. that americans every day experience the scourge of obamacare and anything that the republicans do in this tight spot as you're putting out that fire is going to make everybody's lives better. charles: it is a tight spot though, 217 votes, just one above what you needed, still not sure what's going to happen in the senate. >> right. charles: talking about putting together their own bill so it shows you how delicate this is. >> this is it the way that this moves.

they knew they needed to get something moving because this is collapsing. you have more health insurance companies saying they're getting out of the markets so republicans realize they need to move quickly because the health is going to fall down and they're working to shore it up. it's enough to get it done to move it forward and the senate will do their own bill and goes to reconciliation. this is where the dividual out there who want their insurance, want their health care back need to start dialing phones and be active in this process so the senate knows that our daily experience matters and that we care about what they do. charles: and sometimes police blame firemen when the house burns to the ground even if they set the fire smoking in the bed. >> this is where communications with the white house matters and the communication of republicans, explaining what's going on. and president trump did a great job explaining. and the senate if they think

they're going to change it or not pass anything at all. they are at the ones, the republicans, who can't allow americans to get crushed by the collapse of obamacare. charles: all right, tammy, stay right there later. now to this, just over 2,000 refugees admitted in march, a four-year low. coming in, but a slower rate. liz: they're coming in 2070 and lowest in years. and democrats and five republican sent a letter to rex tillerson secretary of state and homeland security secretary saying why is it so low? there's a fight in the courts, is there a moratorium in the administration to slow down refugees? annualized coming in at 32,000. and president trump says he only wants 50,000 coming in and president obama wanted 110,000 this year. and now the congressmen and

senators are asking why. charles: we've seen a 70% decline border crossings. liz: a different issues, they're refugees. charles: and that they may not want to-- >> it's a great question, but-- >> an implemented policy that hasn't been okayed yet. liz: yeah, yes, an unspoken policy. i think the. >> the larger would be if obama is implementing to do it. charles:en and president trump signed a bill on religious liberty. he's going to visit the pope and israel and saudi arabia. and later, first on fox, president trump's chief

economic advisor, gary cohn, his thoughts on the gdp, tax reform and will the president break up big banks. a travel nightmare, this time a father threatened with jail time because he wouldn't give up his son's seat in an overbooked flight. we'll play you the sound bite, more varney next. why pause a spontaneous moment? cialis for daily use treats ed and the urinary symptoms of bph. tell your doctor about your medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, or adempas® for pulmonary hypertension, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have a sudden decrease or loss of hearing or vision,

or an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis.

time's up, insufficient we're on prenatal care.es. and administrative paperwork... your days of drowning people are numbered. same goes for you, budget overruns. and rising costs, wipe that smile off your face. we're coming for you, too. for those who won't rest until the world is healthier, neither will we. optum. how well gets done. 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 >> don't forget, of course, the price of gold. 1230, up a buck 50. watch out boeing and airbus, china is making jets. you've got the details, e-mack. liz: what happens here, china

is basically working with ge and honeywell to develop the jets. this is a big development for basically aerodynamics and airplane industry for china. it looks like a solid win for them and how many u.s. manufacturers are helping. charles: i hope no xm money is on there. don't let xm help foreign competitors, boeing is our number one exporter out there. it would be nuts to give china any kind of edge in that. liz: good point. charles: by the way, i would never fly a chinese made plane, but sometimes you don't know, right? president trump marks a national day of prayer and signs an executive order on religious freedom. joining us is the author of the book, "no fear". tony perkins, welcome to the show. >> good morning, charles, how are you. charles: i'm great. it was a great day yesterday.

in fact, you were there for the signing. >> i was. it was a very significant day. >> a national day of prayer and this on obamacare. and essentially obama declared open season on christians and other people of faith in this country is coming to an end. that's a good thing. charles: it is a good thing. tony, do you think with a president not afraid to talk about faith, not afraid to talk about god and he starts speeches more recently, we're all children of god, is that going to turn the slide in america sort of away from belief in god and certainly away from religious organizations and the church? >> i think what it does, charles, he opens the door for a cultural shift, not necessarily driven by the president, but by the being

open speaking about god and faith in the public square and they'll pursue policies that protect and vigorously promote religious freedom and empower christians and other people of faith to live out their faith, which is what the founders envisioneds with a the freedom of religion, the ability to live your life according to your faith. charles: right. >> charles, that's the secret to america's greatness and succeed. charles: i agree, but the atheists are the only ones fighting for the last years and winning. and you told stuart that president trump should meet with the pope. we are going to play that tape. >> well, there's nothing traditional about this president. he's doing things his way and he didn't ask me about it, but if he asked me i would encourage him to visit with the pope. i understand his reluctance given their policy differences and the history of the vatican press office putting their spin

on stories. charles: you were right, the president will indeed meet with the pope and go to saudi arabia and israel as well. what are your thoughts now? >> well, i was actually at the white house earlier this week and talking with some of his staff and they were surprised when he said, yeah, i'm going to meet with the pope. i hope in this conversation, the pope talked about persecuted christians. i hope they have a discussion about isis and the threat in the middle east and how together much like ronald reagan did with pope john paul, come together to defeat this evil and protect religious freedom around the world. the pope has been on that issue and the president is on the issue and i'm excited about the fact that they'll meet together and i hope something positive will come out of it. charles: tony perkins, thank you very much. >> have a great weekend. charles: you, too. and more airline outrage, a father and his family booted from a delta flight because he wouldn't give up a seat he paid

for on an overbooked flight. he was even threatened with jail time. that's next. ♪ can i get some help. watch his head. ♪ i'm so happy. ♪ whatever they went through, they went through together. welcome guys. life well planned. see what a raymond james financial advisor can do for you.

your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it?

news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $509 on auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance. >> and they can remove me off

the plane? >> you and your wife and your kids. >> wait, so, we're going to be in jail and my wife-- i bought that seat. >> that was just part of an exchange between a dad whose family was booted from an overbooked delta flight. liz: yeah, he bought the seat. he said, listen, we just came off a red eye flight and coming from hawaii headed home to california and the two-year-old he said would not sleep unless he's in the car seat in that seat which he paid for. this person, whoever that attendant or official was, or individual, said your wife is going to jail, you're going to jail and they'll take your kids away from you. >> he agreed to hold the toddler in his lap, but they kicked him off anyway and he had to spend $2,000 on another flight he and his wife and apparently had to go to a hotel room.

delta is apologizing, however, this family is saying that a delta gate agent approved their plan to use the car seat in the seat and they paid for it. >> and by the way the woman who says it was against the rule, the recent it probably was approved. f.a.a. actually encouraging families to bring on car seats. so, it's absolutely not against the rule, et cetera encouraged. liz: it's inhumane how they treated the family. >> it's remarkable, we all have rules. this is epitome of a customer service industry, you're moving people around and yet it's now so large that people are really hamsters in the wheel. he said when he was getting off the plane, there were like four people waiting to try to get seats and it just seemed like there's no conscienceness at all about the humanity on the plan. richard branson said something interesting when companies get too big, this is why he has separate companies for his airline. u.k., australia, so that you have separate ceo's, it's not too big.

it's like the government you don't lose sight of the have i. charles: went too small, too few competitors, they have airlines that park the planes and seats are smaller. they charge us for bags and everything. liz: charge us for oxygen, kidding. charles: they've gone in my mind-- >> it's a meltdown of an entire industry before our eyes. charles: it is. the market futures guys, it's something of a mixed bag. the dow is probably going to open slightly lower, but nasdaq picking upstream here and so is the s&p 500, again, don't we sort of think this may not be an eventful session. i think it's going to be eventful and sets up monday, also, depending on the french election outcome we could have a huge back to back session or 200 points on monday. and stay with us, we've got news and gary cohn next. thanks for doing this, dad.

so i thought it might be time to talk about a financial strategy. you mean pay him back? so let's start talking about your long-term goals. knowing your future is about more than just you. it's how edward jones makes sense of investing. at angie's list, we believe there are certain things you can count on, like what goes down doesn't always come back up. [ toilet flushes ] so when you need a plumber, you can count on us to help you find the right person for the job. discover all the ways we can help at angie's list. my frii say not if you this protect yourself.ary. what is scary? pneumococcal pneumonia. it's a serious disease. my doctor said the risk is greater now that i'm over 50! yeah...ya-ha... just one dose of the prevnar 13® vaccine can help protect you from pneumococcal pneumonia- an illness that can cause coughing, chest pain, difficulty breathing, and may even put you in the hospital. prevnar 13® is approved for adults 18 and older to help

prevent infections from 13 strains of the bacteria that cause pneumococcal pneumonia. you should not receive prevnar 13® if you have had a severe allergic reaction to the vaccine or its ingredients. if you have a weakened immune system, you may have a lower response to the vaccine. the most common side effects were pain, redness, and swelling at the injection site, limited arm movement, fatigue, headache, muscle pain, joint pain, less appetite, vomiting, fever, chills, and rash. get this one done! ask about prevnar 13® at your next visit to your doctor's office or pharmacy.

thomas from the office. >> 438. >> whatever would possess him to do such a thing? >> it's been a very, very big week for the stock market and of course, it always is when you have the jobs report. jobs coming in at 211,000. much better than anticipated. almost every aspect of the report is good. including the real six number, 8.6% is huge. as for this morning, the dow is not moving because ibm is

getting crushed. warren buffett sold most of his stake, but nasdaq and s&p are opening higher and maybe before the end of the day the dow will join them. let's not forget the french election over the weekend. this is going to be an important session. the bell right now. let's see how it populates, there's the green and the red as well. i think we'll have a good session. you're looking at dow 30. but right now let's bring in liz macdonald and john layfield is back with us and start off with the jobs report. scott, what are your thoughts? >> i don't think it really changes anybody's mind. if you thought rates would go up you'll continue with that. and it's had a little better than expected and obviously would like to see it on that side of the ledger, but you know what? we can't stop thinking about one thing. we stop growing in 2015. the 12 month average, ap now it's 135,000, we beat a little bit today so i think that today's number although i think

this weekend is very important like you just said, deserves maybe a small quiet golf clap a small pat on the back and we have a lot of work to be done. >> john, earnings have stopped growing and they were retreating. and last summer we saw the first year offer year earnings growth. and could that be something of a turning point argue for jobs and the economy or are jobs a lagging indicator to scott's point and not as important? >> i agree pretty much with scott. i think it's a bit of a lagging indicator. i don't think it's quite as important. it's important in the fact that the consumer is over 70% of gdp and when you start to see what you're seeing as almost full employment at least judged by an economist measure of 5%, a lot of things factor into that including the labor participation rate, but you see that goes up. the biggest overhang is the french election. if le pen is elected and they

find a way to get out of the eu, that's a big turmoil for the market. charles: e-mack. liz: retail added 6300 after months of decline. there was revision for february up to 232,000 jobs, march was a revision down to 79,000 jobs, that's not good. and it's the third jobs report since the president took office, 522,000 jobs added over that span. he has not tweeted about this jobs report yet. the debate is whether he can take credit for any of it. charles: scott, overall as someone who watches the trends closely. what do you make of the market stalling here? every time it does, the bears come out and the curmudgeons and it's the end of the world. >> i tell you right now, i don't think that tax cuts is going to be the savior, it's going to help very much. the bond markets, telling you that nobody could imagine how many people were trying to

stall trump in his tracks and even his own party. that's a problem. he's not able to get what he wants done as quickly as he could and that's what the markets are waiting for. we need to start to have actions and tax cuts is part of it, but donald trump's got to get doing what he said he with as going to do. charles: how do you feel about that, john? the opposition isn't just the democrats, it's within the g.o.p. itself? >> it is, and they're the ones that caused the obama repeal not to happen the first time. and you see history repeating itself. president obama got bogged down in obamacare and the contentiousness the way he passed it didn't get anything done the next seven years. you're seeing it bogged down and i think they should have gone after corporate tax first. and with the august break and congressmen refunot coming to w

and it may not happen. liz: he was starting to look like arnold schwarzenegger and had the fights as governor of california with sacramento. almost looked like his nemesis like the guy he didn't like. the repeal and replace almost looked like read my lips. and the senate will rip it apart, some republicans don't like parts of it. and the overhaul of nearly a dozen taxes i think is something that the market analysts are looking at. charles: you know, guys, also, i think we're not talking enough about this spending bill, because here is the interesting thing and this plays to your point, scott. 103 republicans voted against this spending bill, against the spending bill. i mean, how are you going to get tax reform if you've got that much division? >> how about this?

those republicans who vote against the spending bill and now we've got democrats that are worried about the tax cuts not being revenue neutral. the world has been turned upside down. where we stand here today is a little bit of an impasse, i like what elizabeth had to say. ultimately we've got to get things moving as far as growth. it's not just tax cut. .7% you want to throw away the last gopd number. at the end of the day we have so much work to do just to get to 3%. remember how hard it was for obama and he couldn't ever do it. it's call about the growth and that is what needs to change. charles: the stock of the day is ibm because the dow will be up, if it weren't for warren buffett slamming the company and announcing he sold his shares. john, what are your thoughts? >> look, i think that ibm is having a hard time. once a company starts getting owned like that, rarely have someone like apple that's able to turn it around like steve jobs once he came back to the company, that's a once in a lifetime company in steve job.

i think that ibm is an aging tech company and it's a scary thought. charles: is it a cautionary tail? they've missed top line revenues 20 quarters in a row and the ceo keeps pumping billions and billions into buybacks and she won't sell nonperforming assets. she won't make a big acquisition and be a main player in clouds. and scott, a lot of purists say that's what's wrong with the markets. >> that might be what's wrong with the market, but i would say after 20 quarters, you had your chance, didn't you? ultimately, there were a lot of different ways, revenues come through and i've seen that company from the inside and they do a lot of great things. damned if you do and damned if you don't. throw away the old business models and what were you hanging on and go change so quickly. isn't that something you're getting away from your old business model? i agree with the last comment. it's a very difficult thing to change tact and reinvent yourself and today is kind of the culmination. >> ibm had to reinvent

themselves two or three times and that's how you stick around for a hundred years. we know the dow would be positive if it weren't from pressure from ibm. mcdonald's shares are not too far from an all-time high. stocks are down with shake shack and higher profits cigna, those are at a new all-time high. let's stay with the health care systems, appealing to the court, and a deal was blocked. the new administration in, a different sort of attitude towards mergers and acquisition and even toward obamacare, maybe they'll get hope. liz: the debate about obamacare matters in anthem and in the health care acquisition because the insurers have a lock on state capitols. in other words, did they get the true across state lines of insurance products being sold across state line. obamacare allowed for that. only five states did it. that has to be on the radar

screen with any merger, whether they truly unlock the insurance market and allow across state sales. they haven't done that, even though it was allowed under obamacare. charles: now there's apple, they've been raising money with bonds and another bond offering this week. it's a lot cheaper than bringing money back from overseas, right? >> well, i said i don't blame them and i would do it, too, that makes sense. whether we take the money back or not and the money they have overthere, if you can borrow for free or next to free for a long period of time, i think it makes a great business sense. i'm all for it. charles: the debt level is now 100 billion. is there a limit to this? i believe that tim cook is calculating he'll get a repatriation break from president trump, if he doesn't what's going to happen? >> they pay 3% debt on this

money they borrowed. they pay 35% if they bring it back. if the companies is parked overseas, with halt money that apple whose has, they would buy north korea if they wanted to. and spending on their own dividends because of the tax system in the united states. charles: that's a shame. oil at a five-month low. commodities in general starting to go down you know, scott, viewers want to know when gas prices are going down as well. investors are wondering if this is an indictment on a global economy. >> yeah, you know, it might be just a little bit. i also still think that when we had some experts that really wanted to tell us that supply and demand were catching up to each other, that's not the case. with the shale oil find in texas and alaska, america will be energy independent, we've got a lot of oil and has big ramifications. think about it, how much is an electric battery worth if

you're paying $1 at the gas tank for a gallon of gas number one, number two, maybe this is what donald trump is thinking about when he talks about considering a gas tax, itknow te that big of a deal when you put it on $1 of gas. a lot of folks wanted oil prices to rise and it's not good when it falls like it's falling. not long ago, we were hitting 57 and hitting a new low yesterday. it's fairly significant to the u.s. economy. charles: the rigs are coming back on so quickly. i want you to take a look at the stock, universal display. i recommended on the show five years ago, organic light emitting diodes. and a report of $18. i thought the curve tv's were going to be a hit. they're not. they're using them in apple products and everything else. >> that's the key, you want to get the things in as many devices as possible. i think the curved tv, i've heard it for so many years and investing in one of the

technologies. to me it's a thing that's a niche market. you can get the stuff in iphones, you make a bank through skill. charles: scott, john, thank you very much. the big board is slipping a little bit. remember, a lot of the pressure is from ibm. we're off 20, the low of the session thus far. up next, president trump's chief economic advisor gary cohn is onset. a first for fox business next.

>> let's check the big board. the dow off 23 points. more than 30 to the downside comes solely from ibm. warren buffett announcing he sold his stakes and driving the

stock lower and putting an anchor on the big board. uber reportedly faces a criminal probe over software. what's going on there. liz: the department of justice criminal probe. that this software that google deployed and nobody knew about, checking whether transportation or government officials were using uber to look into how uber was treating the drivers and whether the cars were up to standards and code. so, uber is the 68 billion dollar valuation from uber, for uber, rather, continues to be tested time and again by multiple problems that uber faces including numerous probes over alleged sexual harassment, driver problems and the like. charles: i bet you they change the ceo before they go public. liz: he asked for help. he said i need help, adult supeision for him. charle i want bring in gary cohn, advisor to president trump and welcome to the studio. >> great to be here in person. charles: and great to have you on a day of more good news.

>> more good news. look, charles, it's a week of good news for the administration. we've had a great week. you think about what we've got done this week and a continuing resolution done. we've got the government funded through september. we've got a health care bill done. moving onto the senate. we've got a great jobs report as you've said. we continue to work on our tax policy, regulatory reform, a new head of the sec this week, we're excited about it. charles: amidst the confetti there are a couple of questions. >> there's no confetti, we have a lot of hard work. charles: good, good. you talked about the spending bill, 103 republicans voted against this. does this -- this doesn't bode well in my mind for what you want to do, your grand am big biggs-- ambitions with tax reform. i know that president trump turned on the charm offensive and put through obamacare bill, everyone it written it off.

how do you work that sort of a quagmire. >> on taxes we're just starting down the path of taxes, unlike health care, we are out talking to all the groups that are going to be interested in our tax plan. we're holding listening sessions, literally, the day after secretary mnuchin and i announced our tax plan, we started holding listening groups and meet with conservative thought leaders and the caucus, we'll meet with industry groups. we are going to literally travel around and make sure we understand everyone's concerns with taxes upfront. by the time we get a bill drafted, we are going to know everyone's issues, we're going to have dealt with those issues and we think it's going to make it substantially easier to get it through congress. charles: and it wasn't done the first time you tried to get obamacare, the original replacement bill through. having said that, a lot of folks are saying the plan, as it's been talked about so far in broad strokes, it's too ambitious. why not take bite-sized attempts, for instance, can you

lower the corporate rates or even individual rates initially before taking on full-on reform. >> it's ambition for a reason. the president is committed to bring jobs back to america and commit today drive economic growth. to drive economic growth and bring it back to america, you can't do it in bite-sized increments. you have to be bold. you have to attack both the business tax as well as the individual tax. we have enormous amount of our tax system that's not strictly in the business tax system or in the personal tax system. most of the small businesses in america, remember, small businesses are where we get our real job creation. charles: right. >> small businesses jobs by a hybrid tax, a pass-through rate or partnership rate. you have different consequences. taking on the ambition to deal with both personal taxes and

corporate taxes at the same time, we're going to be able to deal with the small business people in the middle who are the drivers of economic growth. charles: i know you're the administration's not necessarily wedded to 15% even though president trump keeps hammering down on that. what about perhaps ultimately 15% for the small businesses you're talking about and something between 20 and 25% for bigger businesses. this way, maybe we could avoid the desperate moves like the border adjustment tax? >> we're committed to drive the economy and make america competitive. we want businesses to relocate back to america and we want to be competitive. we know what the benchmarks are in the world and tax rates are in the world. we know where we have toboggan competitive. charles: 15%, we're competing with poland. i don't think there's a lot of businesses out there saying should i relocate to poland or to america. when you do that you'll have the purist in the senate, republican purists how do we

offset that, and then we get a border adjustment tax that crushes the middle class we're trying to save. >> and tax rates for businesses 23%. and we have a lot of businesses that inverted into ireland and places like that they're paying single digit taxes. 15% is a number we've got get to. the way the tax code is written today we have a lot of companies that don't even pay 15% and at 35% corporate tax rate they're using all the deductions and tools that they've created in the tax code to get their marginal rate down to zero. if we can get back up to 15% there's a lot of revenue in the tax plan. >> the ge's of the world who got back 700 million and i gets what you're saying, this amazing wish list on paper would be phenomenal except for the fact that you have people who live and die, for instance,

by the cbo score and now, i know that the administration is pushing the idea that perhaps the ultimate score should be dynamic scoring, rather than static scoring. is that a possibility? >> yeah, no, we're going to dynamically score. we're going to create growth in this country. we're going to stimulate growth by having a lower tax rate and having reformed regulation. regulatory reform is almost as important as taxes. when we've met with all the business leaders in the country in every industry, they told us the number one concern is regulatory reform. their number two reform is taxes. industry wants to do things in this country and they want to invest, they want to invest capital and hire people as you see in the jobs report. >> absolutely. >> they can't because the regulatory process is too difficult. so they go to other countries where the regulatory process a--ose. charles: i get your point and we understand that's huge, that's the difference, right,

between going 0 oec country, where it may be 20%. it could be 23% here if our regs are lowered. but having said that, the idea that you're going to abandon revenue neutrality or don't care initially if the debt goes up, is that true? >> look, we have not come out and said that. although we do want to get the economy going and what we do know is when you lower taxes, that's an incentive for businesses to relocate to this country and to hire. then you see that kick in to the economy. so you don't get day one impact from that. so, when you actually model out what happens, you get investment upfront and revenue in the back years. so when you model this out over a ten year period you may have deficits in the beginning, but you're going to have huge incoming coming over the period that we model this. >> you're going to have to sell that to the american public. the very audience that propelled donald trump to the

white house, their biggest beef outside of obamacare was debt, 20 trillion in debt crushing the hopes and dreams of their grandkids. first quarter of 2009 enters at 305 billion. first quarter of this year, 508 billion dollars. 508 billion. imagine if that money was going into the economy rather than paying interest? >> we agree, that's why we need to cut taxes and get rid of regulation because we have to drive growth in our economy. at 2% stagnant growth rate, we cannot create enough revenue to pay down our deficit. if we get our tax plan done and we get regulatory reform done, we are going to have more money coming in because we're going to grow our economy and we're going to pay down our deficit. >> let me ask you about repatriation. it's been all over the board. would it be a temporary bush model of a small window to bring it back at smaller rates or are we talking about permanently lowering it and

what about the idea of not having a repatriation tax? >> so, we're in the initial phase of the thoughts here. like i said we're working with people to work it out. we're going to have a big one-time incentive rate to get a lot of the money off shore. you know, we know there's trillions of dollars off shore. we want to get that back into america, we know if we don't incentivize people to bring that money back, it will get invested overseas, we've seen it. history tells us exactly what's going to happen. we want to get that money back and get it back as soon as possible so we're going to give people an incentive rate to bring it back. over time we're going to a territorial system that will deal with a lot of issues and allow companies to move their capital around as they want to. charles: will there be strings attached to the initial window of opportunity to bring this money back? in other words, you'll say, okay, 6 1/2, 10%, but we want you to participate in infrastructure. will there be some form of quid pro quo? we haven't got to all the

details, but my initial thought is, they're going to pay tax on that and we may take that tax and put it into the infrastructure. that's what we're thinking of doing with it. we want the companies to bring the money back and put it back into the economy and we want them to create jobs, to make the life of every hard-working american better by better paying jobs. charles: and the criticism was it would go back to shareholders in the form of buybacks and nothing you could do to say to the companies you can't only do that with money, but i'm sure you would encourage them to put it back into the economy. >> we're going to encourage them to put it back into the economy. what are your concerns? you're flying high, perhaps the best week for the administration thus far, what are you concerned about? the market is moving side ways and there's anxiety building up. small business, for instance, nfib. we know their confidence went through the roof at the election of president trump, but last time we spoke uncertainty is at the an

all-time high at the same time. >> we're happy with what we're getting done. we'll realistic how much more we have to do. we're just scratching the surface. health care bill we've got to get it through the senate and taxes we've just announced our plan. we've got to get a tax bill to the floor of the house and get it through the senate. we've got to get a budget done. get a 2018 budget done. we've got to get reg reform done and a lot of appointees into the seat and personnel is policy in the regulatory world. we're not sitting here and celebrating this weekend. we're working, we are all working really hard to drive president trump's agenda and his policies and we see nothing, but opportunity, but we see nothing, but hard work in front of us as well. charles: gary cohn, thank you. >> thank you so, very much. charles: appreciate it. thank you. >> my pleasure. thanks for asking me. charles: e-mack over to you. liz: what a difference from when the obama administration came in in the first term. focus was on stimulus and

obamacare reform. the stimulus was it effective? the jury is out. and obamacare and chuck schumer even said president obama should have focused on jobs first, not do what he did. there's a sea change more optimism in the economy and consumer confidence is hitting 15 to 17-year highs depending on the measure you look at. we know the recovery in the administration, the white house, obama white house was how they oversaw the economy, not so state of the art. the question is, are investors too complacent and if they do not get the pushing forward will we see a correction this summer or in the fall. charles: and gary cohn was too modest to admit some of this the soft data is also turning into positive hard data. we'll be right back.

..

charles: 10:00 am on the east coast and 7:00 in the west, i am charles payne in for stuart. donald trump and house republicans taking a victory lap on healthcare plans that went through but still a long way to go before it becomes law and the democrats claiming victory in midterm elections for next year. hillary clinton front and center, wait until you hear what she is doing now. the fcc chief tells foxbusiness there might be an investigation into stephen colbert. the second hour of "varney and company" start now. checking on the big board, which is unchanged, the dow, the market, down because and ibm, we will look at that, stock getting

hammered. off of the lows, warren buffett cut his steak big time but didn't have nice things to say if it wasn't for this move. blue chips would be higher, oil still at a 5 month low. trying to find the support point, maybe that happens. we begin with the jobs report, americans for tax reform, grover norquist, 211,000, do you see the number down from january? feels like the job market is gaining momentum. >> it is progress but remember in the year when reagan's tax cut took effect in january 1983, we created 4 million jobs. almost 400,000 jobs a month. we can get that 211,000 number up higher with tax reform. this is a good start with

deregulation. charles: one month where we had 1 million jobs created in a single month, mind-boggling stuff with a smaller population. i had gary cohen on the show and he is pretty firm about the fact that donald trump is going to try to get us a 15% rate, what are your thoughts? >> extremely helpful. the highest in the world, i was just in australia, they are at 30%, second stupidest and there, and from their treasury office, if you go to 15 the rest of the world will follow. a worldwide period of growth as other countries move towards hour 15 which will put us above ireland and the european

average. charles: some conservatives out there who think this could be too much. what happens with debt? the cbo will save government coffers run dry and do a lot of borrowing as interest rates go up and we pay $500 billion now. what do you say to those people? that used to be a big concern for republicans? >> it should be a concern but they should look at the second bush tax cut, the one in 2003. the pro-growth one, the one that cut capital gains and dividend rates. according to the cbo the cbo, they raised more money after the tax-cut than they expected to without the tax-cut and much more than cbo said they were going to raise because they thought they would lose revenue and gained revenue over the four year period the tax-cut kicked

in and raised more money than they expected, quote, paid for itself. cbo have got to get with modern dynamic scoring, learn from its mistakes in underestimating growth under reagan and bush's second, the growth tax cut and we need good scoring so there was a senator, republican, who voted against the 2003 tax-cut because he thought it would increase the deficit. it didn't but we did in fact increase revenue. charles: we had gary cohen talking about grand ambitions for tax reform, major significant tax reform. what in your mind it would be wiser to go for these cutting rates, individuals first and then going on as what happened under ronald reagan to major reform later on. >> i think we can do both because one problem is the worldwide -- two problems, high rates and worldwide system, we

go to a territorial system. what happens here is lower rates, doing both of those together, brings trillions of dollars back to the united states, to bring capital back to the united states immediately and without penalty. charles: have a great weekend. now this. another airline incident, delta under fire after a video surfaces showing a family kicked off and overbooked flight for refusing to give up their toddler's seat. roll tape. >> they can remove me -- >> a federal offense. >> we are going to be in jail? >> a federal offense if you don't abide -- >> i bought that seat.

charles: greg jarrett, i want to let the audience know that was the wife's video and might have been some editing so we don't know the full scope. >> thank goodness for technology that records these incidents because delta would have denied it happened. charles: the inflammatory comments about me going to jail, your kids going to foster care. >> threatening passengers, exactly what you shouldn't do. it was united, now delta. all these airlines need to have their agents undergo a brand-new tutorial on how to treat consumers and passengers because this is a lesson on how not to do it. maybe technically the seat is nontransferable unless you pay a transfer fee but come on, you are talking a toddler in a car seat, they pay for it, they should have allowed them to stay on board. this is a pr nightmare for delta right on the heels of united. charles: here is the thing,

people say what about passengers following the rules? i saw on my timeline people saying they felt the family violated the rules and should have followed directions. >> they technically violated the rules but didn't pay for the seat and should have been advanced, transfer the name from the older 18-year-old son who had flown previously to the toddler, they paid for the seat. i switch seats all the time with family members, we pay for all the seat, i want window, they one child, we don't officially transfer and they don't check that you are sitting in your right seat as long as -- this is the same principle. charles: this is based on corporate greed. >> no common sense. charles: next one, healthcare past the house, gop leaders gathered in the garden, rose garden, to celebrate, and wrote

democrats are crashing the party, they said the bill could cost the gop's and seats in 2018. the political report said 20 republican seats have become -- being up for grabs. >> 23 representatives obviously up for reelection in 2018 come from hillary clinton districts. 14 of those representatives, republicans, voted to get rid of obamacare. they are a direct risk. should be mindful of the polling data. they showed the washington post, 70% of american voters didn't want to get rid of obamacare. funny thing over the last seven years, people hated it in the beginning but grew accustomed to it and dependent on it and anything that takes that away from them now even if it is

arguably better in the near term, may be opposed vigorously by voters who go to the polls in november 2018. charles: a lot of people lost their doctor, premiums went through the roof, deductibles are so high that they end up having less healthcare because they avoid going to the doctors as much as they can. >> that did democrats in in the 2010 election. republicans have been abysmal in their messaging on this. this morning, passing around the internet, facebook is a lie about the vote yesterday saying all preexisting conditions are gone and it lists all the preexisting conditions which is every illness in america conceivable. that is not true. yesterday's bill still prevents insurers from denying preexisting coverage, they can safely charge more but only for one year with $8 billion in subsidies to make up the

difference. that is lost on americans. they think they are getting a raw deal. charles: that is why the senate is saying we want to work with this thing. the senate version may be more moderate. dagen: they are more generous with medicaid money because cup senators and congressmen who want more money. charles: every red state that went to medicaid expansion, indiana, kentucky, ohio a big one, pushing back. we will come back in a moment but let's check oil prices because they tumbled to a 5-month low and at some point got to get that at the pump but for now you see a gallon of regular, $2.36 but just how long are they -- oil prices going? jeff flock is with us. lot of this freefall field technical. they took out key support points but another part of this in my

mind, the american drillers reacted too quickly, brought back so much so quickly they oversupplied us again. >> i wouldn't call it perfect storm but a storm of factors and that is one of them. they thought they would stay around $50 and we are well under it now but recovered today $.42 at the moment. people are seeking bargains right now but in terms of gas prices, this is the shocker because the refiners are making it. it cost more money to make the gasoline so they typically charge more money this time of year. we are flat since january but in the last month and the last two weeks particularly we have come down precipitously and in answer to your question i don't know how low they can go because oil could get back to the 30s. charles: thank you very much. you will see footage of people being rescued after being stuck

on a roller coaster in oklahoma. luckily no one was injured. in june 2016 the ride stalled at the same spot. liz: that is the media covering trump. charles: a new way to find victims by using craigslist, that story for you and the sec received complaints about the rant against donald trump, investigating those comments, we are all over that story, we will be right back. but when family members forget, trust angie's list to help. [ barks ] visit angieslist.com today.

charles: down coming back, off of 30 points. the majority of that from ibm in the bottom corner down $3.83.

getting a little momentum, and now this. huber under criminal investigation. providing drivers with software that helps evade law enforcement and traffic cops. is it beyond that? liz: this internal software that reportedly helped huber identify and avoid picking up government regulators so the department of justice, criminal probe, grand jury in northern california has huber with a subpoena, they want more details, why were you using this software and was it to evade detection of how you are treating drivers or whether huber cars are up to government standards, this is a big test for uber's $68 billion valuation. charles: is that local? i have read about things like that.

i said that was a state local matter, not federal. >> it generally is, you can have state and local violations but the evidence that may be uncovered, there could be federal violations. huber has a lot to answer for and they may have reasonable explanations for though i am skeptical. charles: we all our. let's turn to the border, donald trump vowing to build a wall but who is going to fund it. my next guest is pushing for a private public partnership, bruce blakeman. what is the plan? >> the plan is to have a public-private partnership with the federal government where it will take a segment of the border, we are suggesting 300 miles at the most critical crossing points for illegal aliens such as el paso, del rio region in texas and on that 300

mile border barrier construct a barrier that has a solar collecting components on top of it that will actually produce clean green energy and the revenue from that will help defray the costs of building the border barrier and reduce if not eliminate the taxpayer's investment in the border barrier and in addition mexico by selling energy to them will pay for part of the wall. charles: that is how they will pay for the wall. who pays for construction of this barrier? >> there will be initial investment, a private equity component, traditional baking component but once we reach agreement with the federal government to purchase our energy we would take that contract, securitize it with bond offer. charles: we have surrenderings on the screen, really

attractive, space age kind of stuff. as far as being a protected barrier how will this stack up against the wall we saw with sean spicer's recent press conference? >> it meets or exceeds the specifications by the department of heland security and it was designed by groups of people involved and entities that were involved in the construction of the new nato headquarters in brussels. it has been tested by groups who build prisons, building defense department facilities throughout the world, we have a good team that has a lot of experience and they say this meets or exceeds specifications and is very sturdy. charles: you are onto something. we will follow up.

>> we know polls have been wrong before, we have the latest on that. ♪ ♪ calling up again last night ♪ ♪ we are never ever ever ♪ giving back to you ♪

charles: checking the big board. the other major indices are

higher, anchoring the big board. the colbert controversy continues. the sec chief saying he's not ruling out an investigation into the late-night host's rant against donald trump. >> we will take a look at the facts and apply the law and the law has one set of rules with decency that apply before 10:00 pm and after 10:00 a set of rules regarding obscenity. both deal with facts and make the appropriate decision. charles: what could the fallout be? >> probably not a lot. i don't think anything will come of this. it falls under indecency but indecency only kicks in as the chairman pointed out before 10:00 pm. this was after 10:00 pm. charles: live across the country, could be 10:00 somewhere. >> is broadcast it is only 11:30 or whatever time it is on.

i never watch it because i think he is smug and self-absorbed and not funny but that is just me. it does fall under potentially obscenity which is not protected speech. it is a 3-pronged complicated test set forth by the supreme court, difficult to prove. the sec could declare it obscene material, they could do several things, they could find cbs, revoke their license or suspend their license or threaten not renewal of their license. my guess is they will let it go because these cases are very difficult to litigate by the sec. charles: there have been times in the past the sec under different administrations laid out a lot of funds and were more activist if you will. >> in 2006 they didn't do anything about anybody, there

were so ny federal court rulings about indecency, profanity and obscenity they couldn't make sense of it and couldn't prosecute. charles: that is why we are where we are. president obama inserting himself into another for an election, presidential candidate, we have those details and the fight over minimum wage, a new study showing how detrimental a hike would be for the restaurant business, stay with "varney and company".

>> we're going to have a big, one-time incentive rate to get a lot of the money offshore. we know there's trillions of dollars offshore. we want to get that back into america. we know if we don't incentivize people to bring that money back, it will get invested overseas, we've seen it.

history tells us exactly what's going to happen. we want that money back as soon as possible, so we are going to give people an incentive rate to bring it back. over time, we're going to aer territorial system that will allow companies to move their capital along as they want to. charles: president trump wants to get companies to bring back trillions of dollars from overseas. e. mac -- >> that was a big news item. it was a great interview, and i'm not just saying that. i don't need to kiss your ass -- [laughter] what does trump do? bush had it at 5.25. is he going to drop it to 3%? wow. whenever you hear the democrats talk about this, they say this is a big tax giveaway to corporations. you were right to ask him how are you going to sell this idea because, you know, arthur miller, the play wright, said nothing furer away from washington, d.c. than the entire world. they have no common sense in washington, d.c., it's been boom town, they're in a bubble world down there.

the democrats don't understand what it takes to create jobs. so that's the issue here, the sell. can trump sell it. can he sell it hike a jobs package -- like a jobs package, because the democrats have a lock on the media, and they see it as a big tax giveaway to corporations. by the way, when is anything a tax giveaway? it's letting companies or people keep more of their money than government frittering it away. charles: it's their money, they earned it. let's check the big board, because we're approaching -- well, a moment ago, around the lows of the session, just turning our wheels here. i think that french election thing is in the back of everyone's mind, otherwise i think we'd be up a lot higher. we know that the dow being held back by ibm. to that french election right now, voters are heading to the polls on sunday to pick their next president there. it's between a far-right candidate, marine le pen, and emmanuel macron.

to the daily mail columnist, katie hopkins, who's live from westminster. katie, you know how to look at this thing. you knew about brexit. how's it looking to you, really, this race? >> it's looking like it's going to be a really angry race. it seems that macron is still in thlead. he's polling around 65% against marine le pen, but this is not a home run for him at all. you have the far-left candidate who received about 20% of the vote in the first round, as you'll appreciate there's two rounds for this thing. his voters are saying, well, we're not going to vote for either of these candidates. we won't vote for macron because he's the big banker guy, and we won't vote for marine le pen because she's all about the country, and that's not good enough. there's loads of people who are going to be abstaining. i can see macron winning this thing, but there's going to be so much anger, so much resentment, exactly like the

picture here in the u.k. where it's london versus the rest of the u.k. same in america. if trump hadn't won, that anger about the people who feel no one's listening, and that's really the jobless workers in france. france has an unemployment rate of 10. those people -- of 10%. those people support marine le pen. if macron gets in, the little boy who's a banker and is married to someone who is the same age as his mom, there is going to be rage in the streets. and i'm going to go to paris on sunday to catch up with that. charles: apparently, a lot of contradictions with macron, but some are saying he might have had a deplorables moment. apparently, he just called le pen's voters hateful cowards? he certainly wears his disdain for the working class on his sleeve, doesn't he? >> oh, yes, absolutely. and aftehis first round victory, he went to this exceedingly posh restaurant, he surrounded himself wthe kind

of liberal elite, the establishment figures that you would expect, the sorts of people we can't stand as brexiteers or trump supporters. and he said, well, why would i care what the little people say? he has that arrogance about him. he is arrogant by nature, and that is not going to go down well. we had the live debates the other night that i was watching, and marine le pen came out with a brilliant line. she said no matter what happens on sunday, a woman is going to be in charge of france whether that's me, marine, or whether that's angela merkel. [laughter] and he is seen as kind of a lap dog to angela merkel. there's pictures of him at her feet gazing up at her like the new kind of grandma figure in his life. he's really got a complex, that guy. charles: and some could argue that his wife, who is i guess 30 years older than him, is pulling all the strings, and he's not doing any of the thinking on his own. katie, i do want to ask you

about isis, reportedly telling jihadists to put ads on sites like craig's list and ebay saying apartments for rent so they can lure victims to their homes. >> absolutely. so isis are now, another way of very low maintenance, low-level infiltration of western society in particular, they're saying advertisers, if you've got an apartment for rent or put some goods on ebay, say it's cash only. make sure someone's very comfortable when they get to your place, and then you can attack. it's very specific advice, you know? they're saying about the apartment that you hire and try to trick people there, maybe you could say, you know, students only, ideal for students. it's vy specific advice, and it's all about, you know, spreading fear. it's not that they're going to take out a mass number of casualties, it's that you spread fear. because as a mother, you start to fear for your children if they're out on their own, you

fear for students. what about if you advertise and that person isn't exactly what you think they are? it's very powerful and it works. and i would bear in mind, if i may very quickly, we're not even into ramadan, and as you will appreciate, there is usually a spike in violence because it's a time for jihad. so there is a sense of growing fear, certainly here in london and certainly in other major european cities. charles: yeah. diabolically cunning, that's for sure. katie, thank you very much. we always appreciate it. >> thanks. charles: all right, guys, let's check the big board here. i'm sorry, forget about the big board. i want to check out a new study that says minimum wage hikes cut entry-level jobs and hurt poor minorities the most. joining us now, bar rescue host jon taffer. jon, you've been touring the country, right? you know this better than anybody else, and you've got this rescue tour this summer coming up. i want to talk about that, but first i want to talk about this study. i think we all kind of knew this.

it's always amazing to me when these studies come out, but tell us more about the details. >> well, you know, the economics of a work hour as in a human being versus a machine is very simple. it's simple economickings. if it's more cost effective to put a machine in to cook a hamburger, slice a french fry, wash this, mow this, then that's the move that's made. it's sheer economics. charles: even if you didn't have that, if they hike the wages, you're going to hire fewer people, and certainly minorities are going to have fewer people in the household sometimes who are working.