and i see you right back here tomorrow where i see you every day at 2:00 p.m. eastern. lou will be back tomorrow night. he's got a terrific show planned for you with wonderful guests. good night from new york. kennedy: healthcare is up in the air, but the president says he's focusing on tax reform. can the new white house communications director stop all the leaks in the administration? anthony scaramucci is with us. a new memo and spying on u.s. citizens and it's outrageous. the president channeled his inner barry white and made sweet love to the microphone by singing this beautiful tax-cutting tune. >> my administration is work every single day to heed and

honor the will of the voters. that includes work on one of the biggest tax cuts in american history. kennedy: wish that was the end of the story. unfortunately the president opened up the "wall street journal" brag being this special friendship with bob kraft who told him to tax the rich. that rhetoric. we need tack cuts for everyone that gets money away from the federal beast. the false notion of shifting the tax burden is another form of revenue neutrality and does nothing to tame deficits and growth economy. the administration has every right to be optimistic about 3 to 5% growth.

not everyone is bob kraft rich. but some of us plan to be. i know you have a billion dollar idea percolating in your brain. why should uncle sam burden your business and steal what is rightfully yours. i realize those two concepts add up to a naughty libertarian fetish. just because an idea is that sexy doesn't mean it should be shamed by statists. i'm kennedy. will the president's plan for tax reform actually work or can it be improved? i will welcome ohio congressman jim jordan. let's talk about this. i think the president's heart was in the right place when he spoke in your home state last night talking about tax cuts

which will improve the economy. i get worried when he starts talking about raising taxes on the rich. it sounds like a new form of revenue neutrality. >> that's a fancy way or washington way of saying the tax burden stays the same. we just shift around who pays what. typically middle class families get the shaft. so that's not what we are for. let's lower rates for everyone. let's let families keep more of their money and bring down the corporate rate. let's do it that way. kennedy: you are right about the corporate rate. that's one thing the white house has been right about. what i want to know, it's interesting as members of the freedom caucus you are called the most of conservative in congress, but many of you happen to also be constitutionalists and you understand the importance of cutting costs.

why aren't we as enthusiastic about cutting costs as we are about cutting taxes? >> well said. instead of focusing on this revenue neutral straight jacket. let's do something that's really amazing. let's cut spending. that's what we need to focus on. cutting spending to deal with the debt. creating an environment where we'll get 3% higher growth. that's the formula that works. kennedy: that's the straightjacket we'll give to our kids and grandchildren because that bill is going to come and that debt will cripple the economy. i wish more people would listen to that logic. the thing people should like is tax cuts, and that means more of their own money, and more money in the private sector. government has shown they are

bad at manage their money. let moms and dads see more of their money. let corporations not have the highest rate in the world. let's deal with those problems, then let's cut spending. let's deal with obamacare. that's been a drag on our economy. let's do those things so we can create an environment that's conducive with producing jobs and growth. kennedy: i think we can have -- you talk about it as though unfortunately it's a magic formula and it's not. cut taxes, cut spending, and have the economy improve? how to grow at 3% to 4% which is a modest number. i want to talk about healthcare since you brought it up. what kind of bill wrote you ideally like to see come out of the senate? >> one with the cruz amendment in it to bring down prices and

give more choices. let's go with the plan we voted on last congress, clean repeal within separate replacement bill. that's the way we thought it would be done. that's a good way to go. but it never hurts to do what you told the voters you were going to do. we told them clean repeal, separate replacement bill that would have the market-centered, family-centered approach to healthcare. kennedy: senator mccain yesterday talked about the senate and congress making something even less popular -- more popular than it was before congress got its hands on it, and that's obamacare. i'm hoping if the free market voices are loud and that they

reign in these discussions and we have honest conversations about entitlement reform in this country that starts with obamacare. >> well said. we need to reform our welfare system. if you can't move people from welfare to work, you won't have the labor supply we need to get that 3% growth. we need a work requirement for able-bodied adults. kennedy: with the senate breathing life into healthcare reform, he has to pass a budget which is necessary to pay for tax reform. how realistic is a major tax code overhaul like the president wants. let me bring in my sugar-coated party panel. harris faulkner, charles cook, and comedian and host of abe

lincoln top hat podcast is ben kissel. so let's talk taxes a little bit. i think this is very necessary. people say this should have been first on the agenda. but now here we go. the president talking about raising taxes on the rich. >> you mention populism and bernie sanders. it's a strange crossover between donald trump and bernie sanders. it's why a lot of people believe bernie sanders supporters went and supported donald trump. it should have been done before healthcare and perhaps his approval rating would have been higher. kennedy: what we have seen with both house is operation out of fear. they are scared of the consequences of tinkering with healthcare. how can they operate more honestly on tax reform? >> on healthcare, i think people can say republicans don't have any idea.

and the problem is they have too many. and the ground has changed under them over the years since was passed. tax reform is a little different. it's not as if we are operating in a post obamacare environment. we can cut tax and spending if we want to. but you will see the same divisions in that. there are lots of different times of republicans. i just hope they are open about what they believe. if they don't want to cut taxes, they come out and say that. what's happening with obamacare, they won't say it. they lied for the last few years, now they are suffering the consequences. >> is the problem people want too much? they want their tax money back and they want a lot of the services they enjoy from the government. i'm not talking about welfare, i'm talking about everything. >> are you asking me whether we have not moved forward first and the problem is that? i will tell you, if republicans

don't come out with a singular message on tax reform unlike healthcare, that will be one of the saddest moments this nation has seen. this ought to be something we all agree upon. i quote the president here. people i care most of about are the middle income people. then he says, the jobs producers, we are going to take great care of. i was talking with bob kraft over dish and he said don't worry about the rich people, tax the rich people, then he said he will take care of hits friends and also the middle class people in this country. are there a list of the rich people he's going to take care of and everybody else is going to get taxed? kennedy: when you are warren buffet or bob kraft, it's easy to say that because they will never run out of money. harris: creating jobs is something that makes us all salivate.

but that's got to be consistent with policy, and there is mixed message coming from one source right now. kennedy: i get fed up with the idea it's a zero-sum game. you can only cut taxes a little for one group and the others get punished. >> this is huge for him and for donald trump and for his base. if they are able to fast comprehensive reforms and changes in the tax code. and sort of alleviate the concerns that susan collins, her could you ski when it comes to healthcare going forward. kennedy: the tax reform needs time. >> one of the problems is donald trump isn't particularly good at it. and he gives away all of the second and third stages at the outset.

he should say i want to cut everyone's taxes, this is my aimed. if he's pushed into it by the democratic party he could say we'll focus on the middle class. but he's already confused. is he for the middle class? does he wants to raise tax on the rich? nobody knows. kennedy: taxes and tax policy are complex enough. harris: for people who are suffering it's simplistic. what you are saying is what a politician would do. what donald trump is doing is he's not just forecasting what his policy might be. he's telling republicans on the hill what he wants. they can't seem to figure out what they want. kennedy: he has to figure out what he wants. make the case for it, lay it out and simplify it for people. their bottom line is the bottom line.

two senators, a republican and democrat doing back pedals caught on a hot mic talking trash. it involves susan collins and jack reid. it happened on the senate floor yesterday morning. listen. kennedy: he's crazy. hot mic? could this further strain her relationship with the white house? she is already in deep yogurt.

she is so clean and classy. so this is dirty. this is why people hate politics. they don't know where anybody stands. were they making nice so they can make a deal later? is that really what senator collins nicks of the president really? she isworried? i'm worried that woman don't know after all these years that mic is hot. but i'm also concerned there is a back channel going on with the man leading this country. put everything else aside. your mic might be hot. why not say anything other than i think he's great. why not couple with an idea. >> congress, 12% to 14% approval rating. kennedy: it's gone up.

>> i think they were at 9% for a while. if you are a trump supporter this plays into the narrative that he's dealing with obstructionists and the republican party is against him as well. kennedy: a swamp full of gators. >> in susan collins' defense. she didn't say have much. she said i'm worried about the ufos over texas. you don't say you are a crazy person go away. you would say yes that's very worrying. >> i heard there is aliens. harris: watch the entire thing. it goes on for some time. there are a lot of options you have other than agreeing the president might be crazy. >> she didn't really say have much. >> i think she is worried because he's going to exact his revenge for vice president pence

having to make that tie breaking vote. harris: he didn't have to say that on a hot mic. if he doesn't think you are going to laugh, he will primary you. of the party familiar returns a little bit later. the new white house communications director anthony scaramucci wants to put an ends to the leaks immediately. is it realistic? stay put. your brain changes as you get older. but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember.

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kennedy: anthony scaramucci wants the white house leaks to stop, and he wants them to stop now. >> we'll try to hit a cultural reset on these leaks, not only in the white house, but you'll be work the agencies as well and the departments to do that. you will either work inside the culture the way the president wants it or you will be on pennsylvania avenue selling postcards to the tourists. it's one or the other. kennedy: is it possible to eliminate something that's so ingrained in d.c.'s dna? it was a big night for you last night.

you had a double dose of bretness. i'm wondering from your perspective. is this an impossible task for scaramucci or has everyone else before him been doing it wrong? >> i think if committed he could connect the dots and find people who are leaking. there appears to be criminal investigations ongoing that the attorney general who is obviously under fire is set to reveal or talk about in the next few days. but i don't think it's impossible. it's just that it hasn't been the top priority in a white house scrambling to get its message on the same page. kennedy: you hear scaramucci talking about people being loyal to the president. this is something i spoke to dana perino about. if you talk to people who are

veterans of past administrations, regardless of party, they oftentimes feel a deep sense of loyalty for the president. scaramucci is saying you have got to be loyal to the president and he's stiff arming gop loyalists. should reince priebus be worried? bret: i think so. we heard that he was in trouble heading out the door and it never transpired. but we are seeing the connection between scaramucci and the president. i think -- and the tension between scaramucci and reince priebus. i don't think that that bodes well. then you hear people like wayne berman who has been interviewed we are told at the white house for a big job. maybe that big job is chief staff. if i'm reince priebus i'm worried. kennedy: what are the factions

at the white house and how does scaramucci's influence affect voters? bret: i think he's trying to be synpatico with the president's agenda. he wants to let trump be trump. i talked to him previously and talked to folks over at the white house. that's probably what we are going to see more. if i had to make a guess you will probably see more those youngstown, ohio type rallies trying to influence from the outside in rather than trying to influence lawmakers inside washington on capitol hill. kennedy: when the president goes overseas and has foreign policy trips the news shifts and tends to follow him. it seems like the same thing about these big rallies. what is the connection there? bret: he controls the message.

it's the biggest megaphone we have in our country. this president in particular has generated a lot of controversy and is always on the front page one way or another. but when he goes overseas he represents the country. when he's in the middle of the country he's connecting with people and you seat outpouring of support he has at some of these events. kennedy: it seems like the president with this administrationl there is subtext and there is a story beneath the surface we are not privy to. why is the president so frustrated now? bret: it's a great question, clearly the russia question is burning him up. the fact that bob mueller is doing what bob mueller is doing and we don't know how far it's

going or if it's tangential to the russia investigation, and that's getting under the president's skin. he blames jeff sessions recusal for a lot of that. the president himself what he tweeted and talked about in the lester holt interview he said russia was in his decision to fire james comey, he could look in the mirror a lot of the time. there is a lot of subtext for a lot of things. even this transgender announcement. tonight co-has a peace saying it has to do with money and funding for the wall. kennedy: that's an interesting development to the tory. i appreciate you keeping your eye on all of it. coming up. new document show how far intelligence agencies went to improperly spy on americans

during obama's presidency. how many phone record did the nsa collect in 2016?

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kennedy: before the break i candidate how many phone records did the nsa connect in 2016. it was 151 million. but that was after a clampdown. a membership oh shows they violated our privacy and the law for years during the obama administration by using unauthorized spying to obtain intelligence on american citizens. they failed to meet their own legal obligation to delete the improperly intercepted communications. how did president trump allow this to go on and how many of us have information sitting in files at the nsa? think was happening under the obama administration, as a

candidate, he ran in 2008 as someone who was eager to defend civil liberties during the bush administration. what happened? >> there are 1 or 2 campaign promises president trump didn't fulfill and plenty he did we didn't want him to fulfill. the nsa and military agencies are part of the federal government the say government that brings you the post office. but here it's invasions of our privacy because of mistakes and vie layings of the law that's laid out for them. kennedy: i don't know that these are necessarily mistakes. i think there are intelligence agencies who do this wittingly to use one of james clapper's word when he testified before the senate intelligence committee. it's very upsetting. you say the on way there will be

a resolution is if the supreme court intervenes and declares that we own the data we transmit. >> there is a case coming up' is information that reflects where you and i go with our cell phone. the government is trying to get information about a suspect without a warrant. there should be a warrant standard for that information. a signal about that data would tell the agencies this other data is not theirs to ladle out of the internet like a soup. it needs to come after a warrant has been issued. part of the fisa lou so many americans take issue with is section 702 that allows for foreign target to have some of their communications intercepted when they are speaking with americans.

and the american aspect is suppose to be minimized. but there were violations of that minimization and americans were unmasked. >> is it wittingly or unwittingly? we don't get to know in a secret program. it all happens in secret. they don't let us in to argue for our privacy so it's not a real court. congress doesn't do a good job of overseaing it -- of overseeing it nor does the executive branch. big newsf from the u.s. military and president trump. transgender people will no longer be able to serve in the military. please be individuals that the

u.s. government will not allow transgender individuals to serve in our military in any capacity. they cannot be burned with the disruption and costs it would entail. it's being called an appalling attack on our service members. but could there be more to this story? there has to be. harris faulkner, you are a journalist always in search of the truth. what's going on here. harris: politico.com has an article coming out. that house republicans were planning to pass a spending bill that had a lot of the president's goodies in it. the problem was their argument was hinged on a fight over transgender troops.

he wipes away banning them all together in the military. is there a 1--3 in all of this. the wall funding was in the spending bill. it would not have passed or will it pass because he has done this? we don't know. this report is interesting. it talks about an internal fight that has gone not shadows of the senate handling healthcare. did anybody see this coming before this tweet this morning? kennedy: that's what i was wondering. they are up to 7,000 transgender people serving in the military. >> it was a surprising series of tweets. >> it's unfortunate the wall and the bloated budgets would have

such an impact. kennedy: i thought this was a redirection to his base for the sessions flap or his son-in-law and son having to appear before various congressional committees. i didn't assume it really had to do with transgender people in the military. i didn't realize it had to do with wall funding. >> he seems to have gone further than the request. the original request was to bar fund for surgery. it might be that's all he can do as president. the executive branch may not be able to exercise control over funding in the way the house wants it. i will say this, though. i don't know how dangerous this decision is regardless of whether it's right or wrong for him politically. i don't think this is something think about.

i'll be interested to see how it plays out. >> there will be a huge backlash. kennedy: i think the president is sensitive about being called a bigot. harris: there may be another way to cover the 129 active service members who might seek transition-related care. maybe there is a way to put that funding back. but to ban them all together, i don't know he will be able to address them. kennedy: there is so much other stuff to take care of. but the news cycle is going so quickly, i think a lot of people will forget about this. >> it's not unnecessary if he thinks this bill is going down. he would argue i have got to get this through for tax reform and keeping the republicans onside with healthcare. we can debate whether that's

good or bad, but it's not necessarily politically stupid. kennedy: we'll see what happens with this. you are right. that has to fall in line before republicans -- harris: is there another way to right the ship for these transgender troops? we'll have to see. kennedy: earlier this week kat timpf was targeted and ambushed by a stranger and attacked. she'll gin me next.

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kennedy: yesterday senator john mccain urged congressmen to bring down the tone. this week our colleague kat timpf was ambushed by a man who dumped a bottle of water on her at a campaign event. the man is still at large. let's hope the cops catch him before i do.

there is no reason why anyone on either side. kat timpf joins me now. i was so mad when i read what happened to you. you live your life publicly. you talk about the things that happen in your personal life. what happened? kat: i was just standing there. he walked in, he saw me, he tapped me on the shoulder, he dumped the water on my head. he looked me right in my eyes and slashed the rest of it right in my face and walked out. he clearly came there for that purpose. kennedy: like you i hear it from people of on the right and the left. i'm not supportive enough of the president or too hash on seattle and progressives.

who do you think this was? kat: i have no idea. i support ben for a lot of reasons. also the criminal justice reform aspect. those were the things i was going to talk about. i didn't get to speak. my eyes were burning, i was shocked. i was soaking wet. kennedy: you made a comment thank god it's water. kat: my eyes were burning. i have this footage. i don't want to relights because tino haters would love to see something like that happen to me. if you have a crime committed against you and you don't want to release the footage because you think there are people who would delight in that. kennedy: you are not a partisan person.

you are giving truth to power on both sides. there is a line people have clearly crossed. he didn't have a sign or t-shirt. so he was some sort of activist. i don't even if know what his point was other than's anti-me. i'm not going anywhere so that doesn't do us any good. but it's something i have to think about now. if i have to worry about it out in public, i guess i can't get away from it. kennedy: that sucks. stay safe and i'll have my brother send you a knife. kat take care of yourself. i love. kat: i love you, too. 237. kennedy: a publication says bernie is accused of stealing his neighbor's newspaper.

kennedy: happy birthday to pick? jagger who like most of men who recently became a dad turned 74 years old today. the songs have changed to accommodate their age. start me up is now help me up.

brown sugar is now brown splenda, and get off my cloud is get off my lawn. we should blow out the candles. this is the "topical storm." congratulations are in order for a 1-year-ol 1-year-old wiener ds alamitos, california. the other dogs thought they had a shot. he ran the quickest 50 yard dash in the history of the event. assuming he passes the post-race drug test he's off to new york where he will test his texting skills? the anthony weiner dog races. i think it's a nice story about

a dog track that doesn't require me to he. topic 2. former president bill clinton and author james patter only are trying to get the book they authored turned into a movie. it's called "the missing president. quits was originally suppose to be based on hillary it was going to be titled the missing emails. but the publisher decided against it because thee lost the ending. and they didn't like the ending where the president faints, and her head hits the button and we all get nuked. topic number 3. keep your village away from me. let's head on down to florida

where police are looking for a man who lives by the old motto, dance like nobody is watching. the tip jar. every other guy at the bar was partaking in the time-honored tradition of chugging booze and lying to women. but not this fella. he liked the music so much he decided to do the hustle. police say there could have been up to $500 in at jar. investigators tell us the man likely left the state and he could be hiding in a place where no one in their right mind would ever go, like a maxine waters rally. i don't know why maxine waters became yoda. topic number 4. bernie sanders wants everyone to

have free college. now he may want them to have free newspaper. a "washington post" subscriber called to cancel his subscription because the paper wasn't showing up. so the "post" versus gate. they said the man with round glasses and after bald. in bernie's defense it's circumstantial and you can't expect a champion of the little guy to afford a newspaper subscription at all three of the houses he owns. but who knows if it's true.

check out this video from his recent trip to florida. bartender let me get a white russian. i assure you those fat cats on wall street will pay for my drink. jane was like what? can i just have free money? finally some fantastic news from my assistant ben and our berke paul. researchers gave 88 a word-learning task after dividing them into two groups. the first group was allowed to drink as much as they wanted. the second group had no drinks at all. the boozers still scored higher on the test.

cleanup on aisle 4. coming up. last night i asked you if money could buy happiness. then we got breaking news on healthcare. i have new research that explains your money is no good here. i'll explain on the nightcap. or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember.

listen up, heart disease.) 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. for her compassion and care. he spent decades fighting to give families a second chance. but to help others, they first had to protect themselves. i have afib. even for a nurse, it's complicated... and it puts me at higher risk of stroke.

that would be devastating. i had to learn all i could to help protect myself. once i got the facts, my doctor and i chose xarelto®. xarelto®... to help keep me protected. once-daily xarelto®, a latest-generation blood thinner... ...significantly lowers the risk of stroke in people with afib not caused by a heart valve problem. it has similar effectiveness to warfarin. xarelto® works differently. warfarin interferes with at least 6 blood-clotting factors. xarelto® is selective, targeting just one critical factor interacting with less of your body's natural blood-clotting function. for afib patients well-managed on warfarin, there is limited information on how xarelto® compares in reducing the risk of stroke. don't stop taking xarelto® without talking to your doctor, as this may increase risk of stroke. while taking, you may bruise more easily, or take longer for bleeding to stop. it may increase your risk of bleeding if you take certain medicines. xarelto® can cause serious, and in rare cases, fatal bleeding. get help right away for unexpected bleeding, unusual bruising, or tingling. if you've had spinal anesthesia, watch for back pain or any nerve or muscle-related signs or symptoms. do not take xarelto® if you have an artificial heart valve

or abnormal bleeding. tell your doctor before all planned medical or dental procedures... ...and before starting xarelto®-about any conditions, such as kidney, liver, or bleeding problems. it's important to learn all you can... ...to help protect yourself from a stroke. talk to your doctor about xarelto®. there's more to know™. kennedy: what's you drinking.

the old adage money can't buy happiness isn't true. when you pay people to do things you hate like gutter cleaning. the study followed 6,000 people in four countries and gave them money to buy stuff and offload chores. the people who had more free time were far happier. it showed experiences make you happy. flying first class makes you happier than and fat kid in nevada pudding. the next time you are tempted to buy a 4th century vase, pay someone to do it for you. thank you so much for watching the show tonight. follow me on twitter and instagram on kennedynation. email

kennedyfbn@foxbusiness.com. tomorrow night i have buck sexton and juan williams. >> "abe lincoln, the rail-splitter" made him sound like a man of the people. >> is this the kind of thing that lincoln used as a young man? >> he would use mauls and mallets splitting fence rails, working around the farm. >> but did young abe swing this? >> it was just a relic that was around our house. we didn't really give a lot of thought to it. >> it's their strange inheritance, but it's never been put to the test. >> even though, in our minds, it was 100% real, just because we think so doesn't make it true. >> anybody could have carved their initials "a-l." how do you know it's really lincoln's? [ applause ] [ door creaks ] [ wind howls ] [ thunder rumbles ]