stuart: quickly, check amazon, still way down. bottom line here is the value punters, the bargain hunters have not yet bought this not to any degree. time's up. friday lunchtime. neil: thanks, rejection of the so-called skinny repeal measure. what happens now. the president trump says the senate must go to 51 majority. remember on this particular undertaking those were the rules that affected simple majority and they couldn't cobble that together. we are following the fallout from all of that. surprising limbed stocks. i have expected this morning that futures would be tanking, they weren't. the markets continued to surprise and defy expectations, we are going to get into that and what it might mane for taxes, conservative reviews, real clear politics national political reporter caitlin hugh burns. kate line, i want to raise with

you why did mccain vote against him? >> this doesn't do what republicans planned to do which is repeal and replace obamacare. neil: everyone acknowledged that. >> the republicans in this bill were hoping that it would pass but that it wouldn't become law. they wanted to use the vehicle to get to a conference. it's difficult to explain to people. the other thing -- neil: you could change it. >> exactly. difficult to explain to people. the idea that trump and republicans sold substance to this bill, low approval rating, cbo scores it would take people off insurance. republicans didn't solidify the argument by saying this this is what we would give to people. john mccain, of course, is known for being kind of the maverick in congress. it's very telling though, he was the standard bearer of the republican party, the party that has campaigned or years.

neil: being the admiral who would be the leading the charge. >> if you're looking at the people who voted against for it, they are not up for election. >> you've done enough of that in the hallway, neil. neil: keep it clean. >> i think what the problem is there are too many republicans in congress that vote big government, john mccain, mukowski, collins and there's a list of them and we have their score cards, they score an f based on how they vote. big government way too much. neil: you know, the president got tony sorry -- sorprano, you

got a lot of money unbeknownst to the secretary of the president, her committee oversees the interior of department, that backfired, what do you think? >> didn't work, right. he leaned on her quite a bit but that did not sway her vote whatsoever. that goes to the fact that too many republicans who are voting big government specially some that are coming from conservative states which is unexplainable, inexcusable. neil: you wonder too if the vote that is they risk or the people they tick off in reworking about -- are not only say republicans, they don't only have fallout politically but afraid of their own shadow, what does that portray for tax debate? >> that's very complicated. there's a reason why tax reform hasn't been done in 30 years. it's very difficult. there are going to be pieces,

though, tax changes, tax cuts that they'll be talking about but moving from this debate to that is very complicated. also, i mean, think of the senate, it's a very different body, of course from the house. senators that you just mentioned represent kind of different kinds of state, purple states, also rural aspects here, some different kinds of state. it's very difficult to get this kind of conference on board with a proposal, but the house interestingly today is saying, we did our job, we are moving onto tax reform. the senate can figure out obamacare. neil: there's definitely bad blood there. you brought this up in the past, yeah, republicans have a majority but the thinnest of majority. they don't have wiggle room that democrats had so they could afford to lose senators, they could afford to lose 40 democrats in the first vote. so you don't have the

flexibility, that is republicans that democrats had, so what does that mean in the tax debate where you can't afford to lose that many either and you had some republicans very leery of giving the rich a pass or getting the raise as well, but it could portend trouble? >> are you a fan of gladiator? >> i relate to that guy. >> you have the white house, senate, they won with the red meat, repeal and replace obamacare, they can't get together on repealing and replacing. they are losing the crowds, neil. 2018 reelections are coming up faster than we can see and people are going to be leery and people are going to be frustrated because republicans have not advanced the agenda

like they promised they would. neil: i don't know whether -- i want to bring my friend jonathan who follows the markets closely. markets are not the same as the gallup poll but they are betting with the their money that things aren't so bad. i expect this morning, jonathan, the futures tanking, they weren't, the market would be in free fall, isn't, why is that the case if this shows, you know, paralized. why are they doing their own thing? >> they are given up on repealing obamacare and replacing it with a more free market system discussed way back in 2008-2009 and continue to see what we have seen obamacare, some companies doing very well.

but the broad health care sector has underperformed the market and i think that's because people once again are staying away, just like obamacare, why invest in the system where you don't know where the rules are going to be. neil: if you buy this is something, jonathan, i understand consensus can be wrong that the markets have been bid up in part because the taxes associated with obamacare going away or most of them doesn't look like that's the case or tax reform coming at best, that looks delayed to me, i could be very wrong. why did do they continue to climb the wall of worry. >> i think the market is looking for a reason to selloff, maybe not the health care failure. maybe it's amazon just leading the way downward today but we are up for four weeks running now. i do think that the market on the upside is running out of gas and it could be a political event that prompts the selloff

that many have been waiting for. neil: i was looking, caitlin, with the news we got on north korean missile once again that that would rattle these guys, it didn't. so i'm wonder being the markets are following their own beat and maybe and if we are trying to get a read in the market of confidence of techs to go through, maybe we are missing it. >> or they have been following the lack of congress for years and years. it was interesting to me that the big initiatives would get through just considering the political environment and having covered congress for a while, these things are very difficult. so whether that was kind of baked into the thinking about this. there's a lot of support in congress for some kind of tax reform, but republicans are on different sides of the debate. we saw that this week with

pulling the border tax out of the equation. neil: how do you feel when you talk to a lot of the colleagues, associates on the steve bannon idea of hiking taxes on the 5 million and over crowd, 44%. i know that appeals to many of the president's base, what are people saying? >> high taxes is bad. not good -- well, listen, the more you tax the less you give of. individuals who are on the wealthy end, perhaps they will donate less to whatever causes they support. if you're a wealthy individual, you're a small business owner, what about growing your company and hiring more people, you are going to be prohibited from doing that as well. and so i think higher taxes really is not in the best interest of our country and, again, these guys and gals ran on cutting taxes and repealing and replacing obamacare. i'm thinking turnout would be a big issue coming up in 2018.

foil neil jonathan. >> my mind is blown by what you are hearing by many in the administration. tax the rich and not cut spending, that was exactly the obamacare message and we talk about amazon, the success of amazon, amazon was only possible by initial rich investors who chipped in the first million dollars to get the company started. neil: you're right. >> it's not that you decrees charity contributions, you decrees the wealth creation that makes amazon possible. neil: i don't know if republicans know who they are. every party has its camp. so i know this is historic in the case, but with republicans it's jaw-dropping. it gets in the way of them getting anything done. >> well, interestingly the standard bearer of the

republican party is donald trump by virtue of him being president. he's not a traditional republican. campaigned against the republican party in many respects and campaigned on their way of doing things and not at the -- you saw this throughout health care debate that he was flexible in those terms. neil: i don't know if he was flexible as if he wasn't in the weeds or maybe didn't want to be in the weeds. >> right. there are some problems with that. there's concerns that the president could have sold the merits of the health care bill, traveling around and he did travel and did do a campaign -- kind of campaign-style rallies but didn't talk about health care, he always talked about it in political terms, we have to pass this because we have to move on with the agenda and people didn't really know, he has a 48% approval rating but the health care bill was in the teens, there was room for it to become more popular, i think, if he could have been out there a little bit more but there's the

huge divide in the republican party that has been going on for a while now and the term campaign -- yeah. neil: rudies appointed when you see this? >> very disappointed. i think he's getting different information from all ends of the spectrum. he needs to go back to the basics. neil: he needs to stop stepping on his own message. >> experience in building buildings, if you have an engineer telling you one thing and other one telling you something else, you're not going to move forward. he needs to go back to basic and maybe clean house, i don't know. neil: that seems to be in the works. thank you all and in the meantime, speaking of the president, he's tweeted on this to get simple majority for legislation, of course, that was the case to this health care thing. he's going be making first public remarks talking about gangs in the united states as part of the push on illegal immigration in long island new york, but he might be taking questions from people there or make volunteered comments

himself on this republican debacle here and if and when he does, of the, we are there. meanwhile, colorful language is nothing new if you ever watch fox but anthony scaramucci has now put the new spin on it here, and i'm just worried on what it means to hiring italian americans in the future. a big concern of mine. the fallout from this next

neil: north korea did indeed launch a ballistic missile. we are getting more details right now. the fox news pentagon, lucas thompson. >> neil, u.s. officials at the pentagon can confirm that north korea did, in fact, launch a ballistic missile at roughly 15:45 a.m. eastern time. a rare nighttime launch because north korea's time zone is 12 and a half hours ahead. right now south korean media

reporting that south korea's president is going to convene a rare 1:00 a.m. saturday emergency meeting of his national security council, south korean government base just like the u.s. government. neil, this is the second time since july 4th that north korea has launched an -- excuse me, second time since north korea launched ballistic missile. north korea for the first time launched intercontinental missile, 7 times higher than the orbit of nasa's international space station. local japanese media reported that this vehicle with the latest launch splashed down in the sea of japan near japanese territory. neil: it is wild. in the meantime something else that's wild that's getting the attention, new york post cover says it all if we haven't seen, we have a zoom of it, man, oman, this is one for the ages.

if this doesn't win the pulitzer, i don't know what, frankly. anthony scaramucci uncensored tirade against key players in the administration. charlie gasparino, like father omaly compare today this guy. [laughter] neil: hello, father, how are you? >> play the power of reagan compels you. neil: why did he do this? he went on a tirade with a new yorker magazine? >> anthony is a smart guy, harvard law grad. the one negative i will say he's volatile and careless when it comes to stuff like this. he's the exact wrong person to put in this job. i mean, he's good -- i can see him being treasury secretary before director of communications. neil: chief of staff and i think the president likes what he's doing. >> the president probablery likes what he's doing but what he's doing is bad for the country. i don't think if he became chief

of staff people would work for him. neil: the conducts scares people, sort of like you. >> no, i'm a level-headed guy. i can never say i can do my own -- neil: when he first had that press session, remember, he was great. he was smooth. >> i didn't think so. neil: he talked too long and not much, but then this veers off, and -- >> he's a volatile guy. the other thing he does things -- he says things that are insane sometimes and if you go back and look at a new york magazine article, this happens when he gets -- when he gets full power, when you can see that he's rising to the occasion, he's getting more power. when he was almost inside the trump white house around the time of the white house

inauguration, director of public liaison's office -- neil: he ends up getting something far better. >> right in his wheel house too. neil: this is going to lead presumably, if you're reince priebus, aren't your days -- >> everybody is saying he's gone. i would just say this that if you think that sean spicer left quiet, you know -- sean spicer took a couple of shots when he left, priebus has more stuff on these guys, the 10 million-dollar book deal is waiting for him, being unpublicly humiliated by anthony scaramucci. neil: regardless of what what you think it's nice to do, we are not talking about tax cuts, are we? charlie: i think that's the problem. this is a side show and, again, why is the director of communications generally somebody who you don't hear much

about? he's behind the scenes and crafting message. he's not doing what anthony is doing causing havoc. let me be real clear, what started the whole thing, insane tirade that no one has ever seen before. it started because anthony scaramucci thought there was a leak about who he was going to fire in the white house staff among the old -- the old priebus spicer guys in the press office. i can tell you that nobody in that office, i know for a fact how the story got out there because i actually had it too. it wasn't given by a leak, it was given by a political consultan who was surmising who might get fired in that environment. neil: he clearly has the power to fire, though, it seems this influence extends way beyond the communications office. >> maybe it does, maybe it doesn't. neil: that alone is telling you? >> what he did hurt him inside the white house. neil: you don't like the thought

that president trump likes it? >> there's not one person -- maybe kellyanne conway likes it. i can't iimagine, he called up reporters, give me the names of the people who leaked. he was trying to extort the name. neil: he wanted to know about how he knew -- >> he's putting -- who cares about this dinner, bill shine, kimberly. kim is a fly. in the spirit of time. i was going to use that word. neil: do you think that this this is the week when we had the story, disappointment of the health care vote -- >> taxes. neil: republican senators rallying around session and

don't even think getting rid on him. lisa murkowski. she voted against the thing. >> john mccain couldn't care -- try threatening john mccain, good luck on that. neil: people are not really afraid of him and the president is going to be in long island where he's addressing the influence of groups and groups like ms13 on his way there and will return to washington we are told for the weekend but that this is a president who -- who might not be intimidated, -- intimidating republicans anymore. charlie: the stock market is not reacting, gdp is marginal. that's a decent -- neil: they still like his economic agenda. >> he's net better for investors than hillary clinton. neil: a hike on taxes. >> i heard it's not happening. right. kevin brady talking --

neil: it's not happening. >> we are in a mode where this is kind of like interesting and supposedly we do have a crisis, suppose there is an issue with banks, suppose there's a north korean attack somewhere, suppose there's something bad and you have this type of disarray in the white house. that's where it gets, say what you want for obama or gw. bush. neil: that is nicky -- nikki haley getting on board. charlie: when the financial crisis happening, they could rely on ben bernanke, advisers to handle the situation and contain it. he handed it off to obama who i don't like his economic policies but he had adults in the room -- neil: great cabinet. >> when you got this sort of stuff and you got communications

director acting like al capone, you have a problem. neil: i heard you guys if you wanting to to the new york post we have it on our own. very entertaining. the new york post denied pulitzer for cover, i don't have much faith. >> did you read the raw transcript? neil: i have. [laughter] neil: president trump about to part to long island. stick around, you are watching the most important network for news that matters to you, you are watching fox business. potsch: you each drive a ford pickup, right? (in unison) russ, leland, gary: yes. gary: i have a ford f-150. michael: i've always been a ford guy. potsch: then i have a real treat for you today. michael: awesome. potsch: i'm going to show you a next generation pickup. michael: let's do this. potsch: this new truck now has a cornerstep built right into the bumper. gary: super cool. potsch: the bed is made of high-strength steel, which is less susceptible to punctures than aluminum. jim: aluminum is great for a lot of things, but maybe not the bed of a truck. potsch: and best of all, this new truck is actually- gary: (all laughing) oh my...

potsch: the current chevy silverado. gary: i'm speechless. gary: this puts my ford truck to shame. james: i'll tell you, i might be a chevy guy now. (laughing)

neil: we have been taking a very good look on who is on that air force heading with the president to long island new york, he's going address a gang violence, ms13 in this country, all over the country, but we did see reince priebus on the plane and

there's reports that anthony scaramucci is on that plane as well, that, you know, luggage made it there so, again, i don't know what that necessarily means, bury the hatchet with the back and forth but they're apparently both on the plane together so i don't know how far apart they're going to be sitting but they are on the plane. in the meantime, we are focusing on a new development that happened an hour ago, confirmation that north korea launched a ballistic missile in the sea of japan, closer to japanese who called an emergency session to deal with this. texas republican session pete sessions on all of this, congressman, good to have you back. what do we know about this at this point. >> neil, here is what we know, we know that the north carolinians have fired their 14th missile this year. we know that they're barreling down a confrontation with the united states of america and the international community, we know that what they are doing and

they know it too is aiming for a showdown and members of congress, while we have been very open to dialogue using those avenues, the north koreans are not heathing -- heeding the warnings. it's time for the united states military to have direct talks with them and not to allow the north koreans to advance missile program any further. what does that mean? that means a showdown in my terms because i think we've try today talk from -- tried to talk from the world's perspective and they are dangerous people and inching closer and closer to where they could actually make a mistake and do something that would be aimed at homeland and that is is my responsibility and our responsibility to protect our homeland and our allies.

neil: that's very likely given the fact that these may go off course. oh, it landed in the sea of japan, it landed off the korean coast, what have you, any of these that hit land, that -- whether deliberately or accidental that's a game-changer. >> japan as you know is a very dear ally and close friend of not only the united states but people who love freedom and we will not tolerate this and should not tolerate it much further but it is now time to accelerate our thinking and our plans and i'm sure the president of the united states, the vice president of the united states and the chief of staff of the united states military understands this that the chairman of the joint chiefs is going to have to become personally engaged in this as well as our secretary of state to a high-lighted level where we will not tolerate this further,

in my opinion. neil: congressman, switching gears, were you surprised by senator mccain's vote last night to reject the skinny repeal? >> i think any republican senator that did not forthrightly support the activity to at least get it to conference disappointed me. neil: now, what happens? it seems you're going to move onto health care, i know many conservative members in the house, you might be among those, talked about revisiting this but when? >> well, i had a meeting this morning with a few people down at the white house and i believe in fairness, i believe it's now up to the white house to counter with their specific ideas. you've given -- they have given congress an opportunity and i think that the president needs to develop his own exact specific and detailed plan. i intend to see if we can get

them to move in that direction. neil: i know this is isn't your bailey wig, it is out in the news, anthony scaramucci, the new communications director, are you familiar with his tirade in new york article, he's apparently said before getting on board air force one to join the president to trip to long island, reince priebus as well, it's better not to comment, what do you make of that? >> i suppose they mean about the health care bill or are you talking -- neil: about, you know, tirade. >> let me say this, i believe the president needs to be better received by a number of people and that would include those two gentlemen. the resolution between professionals is essential in any business and they are both at the top of their game from professionalism, that should have included resolution, resolution and conflict resolution is a part of everybody's job and fighting

through the media is not a way to resolve differences. neil: would you fire both of them? >> i would deal with both of them and i am not going to involve that in the media as i just said. what i would tell you is this, is that i have been engaged for 17 years in the private sector in 20 years in congress, i have attempted to work diligently for the things that i agree with and when i won or loss, i did not show that resolve against anyone. i worked to make things better, i intend to do that in my personal and professional life and both of these young men need to do the same for the benefit of the president of the united states of america. neil: if they don't? >> i would handle that very quickly, very quickly. neil: congressman, thank you for taking the time. >> yes, sir. neil: republican leaders are moving on to the next battle, tax reform, they have a framework, kind of a framework right now but the timeline

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maria: i want to ask you if you support white house strategists steve bannon's proposal that he's willing to raise the highest rate up to 44%. is this something that you support? >> i think the trump plan, what the president put out earlier in the year fits our preferences. 10, 25 and 35. that's the kind of thing that we were looking at. that's the kind of area where we have consensus. maria: are you saying that you would probably not support 44%? >> i'm not going to comment on something that i don't even know.

stuart: tracks increases on some people as a way of paying for tax decreases on others. >> no. to be as clear as i can be, no. neil: all right, that's pretty unequivocal there from speaker paul ryan, kevin brady, no consideration of that 44% tax rate on those earning $5 million or more. remember, that was advanced by steve bannon what some interpreted to be a trial balloon. so as i have joked on this show, not enough to keep medicare for a few days. i exaggerate the point that it really doesn't raise that much money but presumably by symbolic. the committee for responsible federal budget, what do you think if it was a trial balloon, what did you make of that, the 44% thing? >> the truth is how you offset the cost of tax return is never

a popular idea. but if you put -- take the bigger of tax reform, there are a couple of ways we can do this. the first truth that many people would like to deny but it is a truth is that tax cuts don't pay for themselves. they do grow the economy but not enough to pay for themselves. neil: how much do they pay for? is it half? a third? >> obviously depends on what kind of tax cuts, if you're lowering corporate tax, for instance, that may promote more growth than targeted tax. maybe 20%, a fifth to a third is probably a reasonable guesstimate, not a half. less than half. neil: i've heard that. i apologize. i didn't hear that. does that take into account people who get jobs as a result of a lower-tax environment and businesses that are more inclined to hire? >> it does. neil: really? >> even the tax scores do look at some behavioral improvements.

if you do a more dynamic estimate of tax reform, looks like the changes to the overall economy and that does reflect increases in jobs -- neil: so if you're right and i will defer to you on this, i have doubts but not on you -- >> yeah. neil: i'm not going to dare a battle here because you're far smarter. i'm curious as to what they could do to offset this. >> right. neil: upper tax rate was the way to address that or send a message, hey, democrats get on board what we are planning here, right? >> exactly. that's the point. we would love it if tax cuts paid for themselves. they don't. we desperately need tax reform in order to grow the economy. how do we offset the costs and the answers are either raise some tacks to pay for other tax cuts and i will go back to that or we cut spending or we add it to the debt, which is the easiest politically choice and i would argue the most damaging economically, because if you just add the cost to the debt,

it actually undermines the growth of tax reform. neil: they're not going to do that. >> i hope not, on spending cuts, well, you would think they would. this is republican, conservative agenda which would normally be let's cut spending and reform tacks. i have seen so few taxes of cutting any spending i'm really sort of shocked by how little movement to cut any spending. neil: the deficit is pretty bad as it is already, it's going to add it to, longer term, conservatives say it's going to add a lot more revenue down the road. lower taxes then what? >> the deficit being pretty bad is putting it mildly because our debt is near record level, the deficit is project today grow every year and these problems are going to get worse and worse which are going to be a huge drag on the economy. if what we do is just cut taxes

and don't offset the cost at all, it will decrease economic growth and once the real scores come out, the legitimate scores, it will show it will not grow the economy to offset the cost in the long run. what we need to think about is how to do that. there's so many options, the tax breaks in the tax code are well over a trillion, closer to trillion and a half in loss revenue a year, just by getting rid of some of those tax breaks, you could actually increase the growth of your tax reto form. the wall street journal has editorial today. yes, people love them, no, nobody wants to talk about which ones to get rid of and they'll be fight between businesses and people that love tax breaks. if we want to do something to simplify the code and grow the economy, let's do full on tax reform which with -- will grow the economy and what the country doesn't have right now is anything close to sensible comprehensive economic plan to help promote growth and increasing the standard of

living and if we just kind of go for the easy let's cut taxes, everybody needs a political win right now, who doesn't love a tax cut, it will seem good in the moment and it will do real damage in the economy and it's not focusing on long-term economic priorities but we really need to. neil: i like sugar highs. >> they're good till the crash. neil: have a safe weekend. >> yeah. neil: hillary vaughn with more details on the tesla hacking event that's raising a lot of concern and eyebrows. >> this is the second time the chinese hacker group has taken control of a tesla model x, here is what happened, they were able to override the system, operate the brakes remotely, open and close the doors and the trunk, flash the cars head lights on and off, set to music, stream from the tesla cars radio, this hack was demonstrated at the

black hat conference underway in vegas. that's where the world's most elite hackers come together to show off their skills. so here is how they did it, the hackers used the cars web browser to deploy malware but can this happen to you? we talked with the cybersecurity expert who attended the black hawk conference and say that any wi-fi-enabled car didn't hacked. >> some cars have satellite-base control, where you can control by app, that's a different story. hackers can then go through the app or infrastructure that controls the car from miles and miles away and be able to then remotely control the car. >> tesla is reacting to the findings with a big thumbs up to the hackers. their partnership with security teams like team lab helped them stay in the game. while the risk is very low and

we have not seen a single customer ever affected by it, we actively encourage research of this kind so we can prevent potential issues from occurring. now, the good news tesla has issued a fix, team lab says if you're running the latest firmware, you're already protected, neil. neil: hackers have a conference in vegas. [laughter] neil: they show up -- >> happens every year. neil: i think i have a room -- thank you very much. wild stuff, hillary vaughn. amazon down 2% after the profit disappointment yesterday. jeff bezos is not the world's richest man for now. and could be on the journey to much worse. help stop the journey of gum disease. try new parodontax toothpaste. ♪

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everything that's going on like a game of survival. rachel campos duffy. it sounds and almost looks like an asylum there, other administrations that dealt with, you know, back and forth infighting and biting but this is out of control, what do you think. >> it isn't pretty. it's been pretty unprofessional. as you can see, sessions is a class act, he's handled this really well, he's a loyalist and great advocate for trump and i don't think he should have used his tweet fire against sessions. that said, what he should have done with twitter this week, the president, is used it to promote good things that were happening, 10 billion-dollar investment in foxconn. there's pretty fishy scandals that are going on on the democrat side that he could have

highlighted. he's stepping on his agenda. he's pointing his twitter fire at his own people instead -- neil: he would be right to. i do think he has a lot of growing to do, you could argue the mainstream media misses, a plant in wisconsin is significant but he gets in the way of that message and i wonder now with all of this infighting whether that's productive or he has a team where this might be encouraged, i can't imagine it would be and i understand a little competition is healthy in every organization, but this seems to be like more and more like crazy town. and i wonder if it gets in the way on a pretty good economic message if people can differ on the details of it but what do you think? >> yeah, gdp is up, there's so much good stuff happening and jobs coming back that we thought

were the democrats said were gone forever. it's not just him, though, the president is only one stepping on the message, now we have his new comms director, it's very problematic. neil you're talking about anthony scaramucci. >> yes. neil: finish that thought quickly. >> i was just going to say i came out of reality tv, you know that, neil, this is far more anything than anything i was on. neil: i'm still in reality tv and enjoying every minute of it. rachel, thank you very much. we have more and maybe the president commenting on this in the next hour. stick around, you're watching coast to coast.

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>> mr. peters. >> no. [background sounds] neil: all right. that was the moment that stunned everyone, you heard audible gasps when senator john mccain voted no for this so-called skinny repeal that surprised a lot of folk toes and virtually secured the fact that it wouldn't be going anywhere, and that got senator ted cruz to say this: >> i believe this congress will come back, and in time, we will honor our promises. you know, senators are going to go home the next few weeks. they're going to go home to to

their states, and they're going to face their constituents. they're going to have hard questions of people who look them in the eyes and say, why did you lie to me? the it's not going to just with the senators that voted no. the voters are not going to distinguish. they're going to say you guys promised to do this, and you failed. neil: is there something to that, the fact that all republican senators take it, the heat, because they pailed in the majority -- failed in the majority to do what they said they would do? >> you know, it's funny, i hear there's going to be protests these next couple days, and i had to wonder, wait, protests from the left or the right? i mean, i'm so disappointed in this congress, to be perfectly honest with you. how many hundreds of millions of dollars did these gop senators raise on the backs of the promise of repealing obamacare? and half of me wonders that they actually never thought that the republicans would win the white house the last couple weeks before the election, so they just said, yeah, let's raise as much money as we can, and we're

going to keep on doing these ceremonial show votes because it's actually never going to matter. look, now the people are getting really angry. would have people on the left that are, obviously, protesting us. but the base, which i'm a member of, we're upset because we put these senators in place to get rid of this disastrous health care law. and i find no excuse why senators from states like west virginia, maine and alaska can't come to terms with a skinny repeal. it's more than disappointing. neil: and arizona. did john mccain's vote surprise you? he did campaign on an uphill battle, just getting the nomination was a fight and he ultimately won by 15 points. normally, he had been winning by 30 or 40 points, and he had made it clear in a lot of his advertising that he would be the lead admiral on repealing this thing and getting it done. so here there was the opportunity a lot of conservatives said he had, and he didn't do it. what do you make of that? >> very disappointing. and, of course, we wish him a speedy recovery and, you know, you just feel terrible for him

and his family. but look, here's an opportunity for him to do what he said he was going to do, and the constituents of arizona, they put him first in the primary position, because he had to fend off a primary -- neil: absolutely. >> and then he had to go into the general. and he stayed consistent with the message that i'm going to repeal obamacare, we're going to repeal obamacare, this is a mess. and i heard his speech the other day, which had some good elements that i agreed with, but he went out there and said we have to be careful not to repeal this whole law. that's a different type of speech than what you said on the campaign trail. and this is a problem that is emblematic of not just health care, but we're going to see this in taxes too, by the way. this is going to come up in the fall where they say one hinge to the people, and they do a totally different thing in washington, d.c. and where the that rubber actually hits the road, i wouldn't want to be mitch mcconnell right now. he's actually trying to get the votes to do what they said they were going to do -- neil: so you think it's doubtful they can even get their act together on the tax cut thing? i've already seen that

telegraphed by a number of representatives and senators on the right who have very, very different ideas as to how far these tax cuts go, if they're all tax cuts, for example. some are open to this steve bannon idea of raising taxes on the richest americans. so there's already signs that these guys are not in sync. >> that's right. and, look, there's another interesting component to this. i don't think the senate has any urgency to repeal obamacare because they sort of actually exempted themselves from it during the original passage. they get their own congressional health benefits, so they live under different laws than the american people. and as you know, neil, the founders put in place a clause that lawmakers should never be allowed to exempt themselveses from the very laws that they pass upon people. and in this goes for tax reform too. i mean, if the senators actually a have to raise their own taxes, they're going to be like, wait a second, i don't know about this. that's the steve bannon idea. it's a carried interest tax which a lot of these senators and congress people have, as you

know, 401(k)s and, you know, they put their money in stock portfolios that are kind of these blind trusts. wait a second, i'm going to have to pay taxes on this? the biggest problem is congress is living a different life in sometimes i think a different universe than the american people, and they seem immune to repercussions because they say something different than they actually do in washington d.c. neil: it is remarkable, the turn of events just in the last 12 hours or so. charlie, thank you very much. as charlie's pointed out, they are planning nationwide protests against the republican health care plan that's supposed to be slated for tomorrow, these protests. of course, it would seem to be a moot point because that plan is all but dead right now. to jenny beth martin, independent radio show host ethan -- [inaudible] jenny beth, why are these protests even still on? >> i don't know, i don't know why they're still on, but i think that it just shows that even democrats and liberals believe that republicans will come back and work to repeal obamacare.

and they understand that republicans are ultimately going to have to keep this promise to their constituents. neil: i don't know if they can at this point. they don't seem, maybe given the relatively close numbers, ethan, to be able to do that. i mean, while you've got control of the senate and the house and the margins are such they're not quite what democrats enjoyed when they could afford to lose 39 democratic congressmen and women in the first vote for obamacare, they don't have that kind of wiggle room. i wonder if that ever materializes. having said that, what do you think will be the point of the protests tomorrow then? >> well, i think it really is that we need to save what is left of the affordable care act x. that does require working with democrats. i thought chuck schumer said the right thing yesterday when he said, look, republicans, we're willing to work with you. we've known we've needed to fix this, so let's save what is there, make it work better. and i think it's right of the american people to come out and say let's fix this thing and make it work instead of just saying repeal, repeal, repeal.

neil: that might be the end result of all this, jenny beth, that the two sides work together on this. but republicans still wince at all those taxes that are part of this. that was, actually, one of the big everybody issues for them. but -- bigger issues for them. i see nothing that would derail those taxes, so where do you think this goes? >> i think there are going to be constituents from both sides throughout the august recess who are going to their senators and to their congressmen and talking about obamacare. i, base on the e-mails and the feedback i've been getting since 2:00 in the morning, people are livid with the republicans right now. they're very, very upset, especially the moderates. and they are going to continue to remind the republicans this is what we worked for, and we expect you to keep your promises. and, neil, if obamacare's so great, why are the democrats in congress and their staff living with an exemption? why aren't they living under this law?

and the same goes for republicans. it's time to get rid of the congressional exemption for congressmen, senators and their staffs . we have to live under it, they should do the same. and president trump needs to get rid of that congressional exemption. if i were him, i'd get rid of it today. neil: there is talk that he's looking to do just that. but, ethan, regardless of how that goes, democrats had a seminal shift on all of this when instead of being the party of no or being against -- and they've had great capital on that -- they must sense it's only so far, it can only get you so far. still early on, but they haven't raised a lot of money, a lot less than republicans and maybe chuck schumer who, if nothing else, is a brill i can't strategist is thinking we have to be for something. we have to start getting, you know, with proposals of our own. so are democrats automatic beneficiaries of this, or are they sort of counting their chickens as though they've hatched? >> i'm with you on the counting the chickens before they hatch. they can be beneficiaries, though, because if they actually

put support some good, solid ideas, here's how we can shore up what's wrong that they've known for years needed to be fixed. but i also want to point out, neil, that bipartisanship does happen, albeit rarely in washington. look, minnesota senator amy klobuchar, a liberal democrat, has worked together with conservative senator mike lee -- neil: you're right. >> -- on legislation to rein in the cost of pharmaceuticals. so they can work together. neil: no, no, it is possible. it seems like the only way something is going to get done period here, because, you know, when i'm looking at this, jenny beth, i'm seeing that republicans seem to be incapable at this point of advancing anything approaching their agenda. >> well, i think that what we've seen is conservatives are willing to make compromises when necessary to continue to advance towards their goals, and the moderates this past week have proven that they don't. they're willing to flip-flop, they're willing to back pedal on their promises, break promises to their voters.

and we're going to have to work over the next several weeks and months to hold them accountable and remind them repealing obamacare, growing the economy, tax reform, securing the borders are why they are elected. neil: if both of these sides, democrats or republicans, can't get together, i'm going to pull an anthony scaramucci on them, and it's going to get ugly. [laughter] he had words, guys, that i had never heard combined the way they were. but anyway, thank you both very much. have a good weekend. >> thank you. neil: in the meantime, president trump is on his way to to long island to push against gangs, particularly ms-13. this just materializedded over the last few years and has become a national threat, part of something that might dovetail into all legal immigration and the risks therein, but it would also afford him an opportunity maybe to comment on these latest developments in washington and among his own staff. stick around, you are watching "coast to coast." ♪ ♪

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neil: you know, for all the yammering over what's going on

in washington, the economy's doing okay, growing about a 2.6% clip in the second quarter. not 3%, 3.5%, some of the goals of republicans to sort of get growth going and address deficits and all of that sort of thing. but president trump is, no doubt, going to do a little bit of crowing about that, whether he mentions some of the other developments in washington when he comes to long island to give his speech on gangs, particularly ms-13 and their pervasive influence, anyone's guess. connell mcshane out on long island with the latest. >> reporter: hey there, neil. it's a chance for the president to get back to focusing on his agenda, items we heard him talk about during the campaign, combining violent crime and illegal immigration. this ms-13 gang that you were talking about has its roots in central america, in el salvador, but it's really been wreaking havoc out on long island. there are immigrant communities in brentwood, nearby central islip as well, and authorities tell us that the gang has been

linked just over the last year and a half to 17 murders in this area. so the question becomes what is the federal government doing, and administration officials have been telling us the president will talk about a few different things. we'll show them to you. one thing, we're told, is call for more i.c.e. agents, immigration and customs enforcement. 10,000 more, is what we're expecting. more immigration judges as well as passage of kate's law which would be a crackdown on sanctuary cities. and finally, we do expect the president to talk about building a border wall some to do when he -- today when he addresses this crowd. he's being accompanied on air force one by congressman peter king who represents this area along with some others in the area. i spoke to congressman king, and he was telling me on the phone this morning, on the radio, neil, that unaccompanied minors are a big part of this. and that's why it's become an immigration issue. ms-13 tries to sneak in young kids across the border, and then

they'll get a family up in an area like to sponsor them, and that's why we've seen an uptick in the crime in areas like this. again, according to congressman king. some quick live video from across the street where protesters have gathered, completely different message from them. they think the president is just using this issue as an excuse to crack down on, you know, otherwise hard working immigrant groups. so that's as cross the street. back here, neil, it's invitation only. you might see some police uniforms, people milling around behind me, and that's basically the crowd we have awaiting the president later this hour. we'll see what he says. i would think he would stay focused, on topic as opposed to issues you were talking about a little while ago. neil: we'll see. connell mcshane. meanwhile, the media continuing to pile on anthony scaramucci's comments about one guy. you know, the if you think about it, does anyone remember when hillary clinton was calling half the country deplorables?

the congress of racial equality spokesperson niger innis wonders about that. niger, it is a good point. >> the -- it shul is. first of all, i believe the communications director is doing a fabulous job with sarah huckabee and the team that they're putting in place to crush the leaks. the president is -- neil: there's got to be a better wayed to do it. right, niger? i don't know. >> there has to be. there has to be. and, of course, getting back to ms. clinton, we all remember when she said that folk were not just deplorable, but irredeemable deplorables. [laughter] you know? the double standard that has existed among the left and the right, i think, is coming to an end. and so i'm very, very pleased with the way the administration is moving forward. a little disappointed about the collapse, seemingly so -- and

forgive me, neil, i've been a little underwater, i haven't been brought up on current affairs as i need to be, but i've been told that the aca is in a tough, tough bind right now. neil: yeah, no, i would agree. you're not missing anything. i mean, it does look like the law of the land remains the affordable care act, and whether you like it or not, its problems notwithstanding, it will still be the only game in town. having said that though, i'm getting a sense, you know, the way the double standard in the media, i think that extends to john mccain. no one doubts he's a hero, this is the same media that's praising him and his guts for making the decision that he did and the vote that he did. he is given a pass on this, and no one digging into how this jibes with the way he campaigned for re-election. so, again, anytime you criticize that or wonder what the motivations are behind the vote, i'm not here to do that. i have great respect for the senator. but i do find that the media, particularly the mainstream

media, a little more than a few years ago was panning him and laughing at him and to say nothing about how he was treated during the 2008 campaign against barack obama when, you know, over 60% of the news coverage on him was negative, i just find that a remarkable turn of events. what do you think? >> to be honest with you, neil, i don't find it remarkable. i find, you know, senator has great respect from me for his years of service and sacrifice, but the -- many in the establishment media, you know, if the senator's vote which it seems to be a bit of a contradiction considering that there is clearly an agenda that is agreed upon by president and by the senators and congressmen that that he can trust.

and the senator in, i believe, alaska and, oh, i forget exactly who -- neil: susan collins -- >> i flippantly said three liberals voted against moving the ball down the field. neil: but you know what i don't understand, to your point, it was a skinny repeal bill -- stupid, in my opinion -- but it was the only vehicle they had to address maybe widening out changes and fixing what we have. even if you didn't flip over it, even if it was weak and watered down as it could get, it was a means to, presumably, an end. and the senators -- >> to get to -- and thank you for helping out here, because to get it into a conference where, you know, there could be negotiations -- neil: now you can't do that at all. now that'll never happen. >> it seems that way. i hope not, but it does seem that way. neil: all right. we'll watch what happens. niger, always good catching up with you.

enjoy vegas, my friend. >> thank you, neil. neil: in the meantime, tobacco stocks are getting hit hard on this news from the fda. to nicole petallides at the new york stock exchange. what's going on? >> reporter: neil, you're absolutely right. altria group is down 9% and also we're seeing the group selling off. why are we seeing tobacco stocks selling off in this way? well, the fda has a new plan to lower nicotine levels in cigarettes to non-addictive levels. they are working on balancing regulation going forward, the idea behind it is that 90% of smokers started smoking before the age of 18. the hopes of new regulation is that future generations will not become addicted to smoking. in the meantime, a name like altria has had its worst selloff since the year 2008, at one point it was down 19%. it's down 9% now. neil? neil: all right, nicole, thank you very, very much. just a few minutes away from the president of the united states.

he'll be on long island talking about gang violence. and more important, gangs that are threatening stability in this country in communities that would be the last you'd suspect would have to deal with it. ms-13 and other gangs that have gained influence and a foothold in america, part of a broader push we're told the president will make against illegal immigration. we're there when he speaks. stick around. [vo] progress is seizing the moment. your summer moment awaits you now that the summer of audi sales event is here. audi will cover your first month's lease payment on select models during the summer of audi sales event.

neil: all right. look what's going on with starbucks, dropping the most we've seen in fife years today following a weak earnings report. amazon shares dropping as well, percentage wise not as much. but a lot of this on disappointment that the earnings didn't measure up. in fact, the company seems to be spending a great deal. jeff bezos just does his own thing, and sometimes that hits the stock for a while. ultimately, longer term bezos is of the opinion, of course, that it's all about boosting and expanding his operations to the point that the shares will sort of correct themselves. to market watcher gary -- he is

not too, too worried about these developments. gary, what do you make of it? >> look, amazon throughout the years, and i'm surprised too. for a few years they lost money, and everybody whined and complained. but they had a method to their madness that was coming out of it was the growth. and they're saying every now and then we're going to ramp up expenses because we're going to want to continue the grow. and a great example is august 2nd's going to be amazon jobs day. they're hiring 50,000 people at ten of their fulfillment centers. that's not because demand is bad, that's because demand is strong unlike retailers that are shutting their doors and firing people. and by the way, these numbers today that amazon reported if it was a regular retailer, the stock would be down 15, 20% because you would think things are going wrong. but everything's going right for this company right now. neil: you know, what is your view on the high flyers like the amazons and even the apples and the alphabets, the google parent?

i mean, they've been leading this parade, and i'll throw facebook in there. that if you have any one or all of these stocks, you've been on fire and it's, of course, affected disproportionately so the performance of the nasdaq, the nasdaq 100 and a all of that, and then you take a little off the table. you don't get too greedy. what's your view on that? >> well, i always worry when things get disbo proportionate -- disproportion nate like that. but there is a reason why. facebook, 50% revenue growth. amazon, big, 25% revenue growth. google in the 20s. now, apple less so, but there's a bet on, there's a big producting to come in the next two, three months that's going to start doing it again. so they are really separating themselves from the rest of the pack that are just not growing in so many areas of the market. so there is a reason for it, unlike, you know, there's a lot of talk about it's 1999 over again. neil: right. >> with these stocks, i completely disagree. there is a lot of meat behind these companies.

they are category killers, and they're getting it right. neil: you know, you'll never time it right. we were replaying some old interviews with jeff bezos from years back, and one was right after the sort of internet meltdown. i think by then it was early 2002. stock had been over $100 a share, it dipped below $10 a share. so i'm talking to him, and i actually said this to show how keenly prescient i am, you know, jeff, a lot of people say you'll never see $100 again -- [laughter] and i think he did. but his point was i don't follow this stuff. i mean, i just know what i'm building. i believe in what i'm building. and, of course, had you bought and believed on that, a lot of people getting nervous and getting out of all internet stocks. this is where i cover myself, because there were others who were doubters, who said, you know, the high flyers, the internet guys are going to go all bust. and amazon was among them. are there lessons there? like, how do you guide particularly young investors on

this sort of stuff? >> well, i'm a big believer, watch the stock. it tells you a lot. and, neil, we can go back. remember pets.com -- neil: i do. >> buy.com. web van. i can name a hundred of them that are gone by the wayside. amazon just happened to be the difference. by the way, they're just not a seller of things, they've created so many things with amazon prime or with the artificial intelligence, and i think there's going to to be a lot more to come going forward. for whatever reason, jeff bezos has separated himself by everybody as a visionary versus others that have just gone bye-bye many years ago. and, again, it may be the stock's expensive and maybe it shouldn't go higher from here. all i can tell you is a company, they're doing things right. and hay really treat the company as a private company. that's why they're willing to ramp up expenses and not worry about one quarter to the next in the hopes that the sales are just going to continue to grow. if demand's going to be there, stock's going to go higher in the long run. neil: well said, my friend.

i just want to switch to you when we've got the president on the plane -- is this coming off or on it? this is live coming out here. anthony scaramucci is with the president, and reince priebus is there as well. so i don't know what this would be like, like, if my two sons are fighting, i mean, and we show up, like, at a family reunion, both of you, i don't want you to knock the you know what out of each other. so everyone has to play nice, and everyone's having a nice time and waves to uncle joe. anyway, they're both there together. i love these kind of moments because they're so uncomfortable for so many people. meanwhile a border adjustment tax is being scrapped from this reform consensus on taxes, so said speaker paul ryan to maria bartiromo. take a look. >> what we're trying to communicate is that we think most of all that is important is that we come to common ground on how to do tax reform so that we can get tax reform done in 2017. what i and other house leaders who had been pushing the border adjustment -- i still think

that's the way to go, the right kind of tax reform plan, but if it's going to stop us from getting to consensus, then we don't want that to happen meaning the border adjustment, we want consensus to get tax reform done. neil: all right. is that goes. what else could go and what could be added in maybe to pay for all of this? do you have to pay for all of this? "forbes" publisher, rich -- [inaudible] on what's ahead. rich, what do you think of that? if he has scrapped that, he already told maria he scrapped the idea of surtax on the very wealthy, guys like you, so what happens here? [laughter] >> i'm really encouraged by this flexibility, because paul ryan, for all his virtues, is a bit of a tax wonk who sometimes ties himself up in knots and doesn't see the big picture. and one of the ways you tie yourself up in the knots is to be overly influenced by the congressional budget office's estimates of what this will do. and the cbo really does not take into account the dynamic effects

and consumer and investor behavior changes that result from tax changes. neil: another question, i guess, is what happens here. are they going to to go big or just go tentative? are they going to go something that just will amount to a tax cut, maybe not even a big one, but not tax reform? what are you hearing? >> well, i think that you see from the announcement yesterday by the big six, the administration, the senate, the house leaders who were all in charge of this process that they still want to go big. we're looking at tax reform and not just nibbling on the edges. there's a couple of reasons to think that could happen. i think the biggest one is that the voters who elected president trump felt that they were left behind by obama economy. and so these are people who are looking for economic growth and economic opportunity. and i think what we have seen in the past is that the single biggest way the motivate the economy, to start turning again is through comprehensive tax reform. even though we haven't seen this at the federal level for several

decades now, i think there's a real appetite and opportunity to get something done. neil: i'm just wondering after the battle over health care and even other relatively inknock owrks skinny repeal measure and they couldn't get together on that, who's to say they can get together on anything approaching, you know, anything of substance on tax cuts? >> well, nothing concentrates the mind like a hanging, and i think that the republicans are now on the verge of hanging themselves in the 2018 elections. so in a funny way, i think the failure of the health care repeal will work to their advantage on tax reform. there'll be that much more focused and eager to get it done. neil: i hope you're right, but, mandy, i'm already reminded after talking to so many of the moderate members of the tuesday group and the keys like the house freedom caucus, they have very different ideas on taxes, particularly the conservatives. they don't care if they're paid for, they just think you get a considerable bang for the buck and eventually the economy will benefit, deficits will go down

even if they don't in the near term, and the moderates who say, well, don't count on that. keep them neutral, revenue-neutral a whatever the term is that's popular now which would limit the size and scope. where do you see this going? >> i would argue there's a lot more consensus on tax reform than there is on something as complex as health care. there's been a, a narrative that republicans have campaigned for the last seven years to repeal obamacare and to get this right, but this reality republicans and conservatives have been working for several decades to try and find consensus on health care. is it's not too much of a question mark as to why seven years maybe didn't yield the results we wanted culminating in the vote last night. but with tax reform there is consensus, and i think it starts with the implementation behind it and why we are motivated to get tax reform done to begin with. look agent the economy over the -- looking at the economy of over the last couple years and having the evidence as the attempted motivators for the economy and noticing how it

doesn't work, we have a template for why tax reform -- neil: well, do you think it'll be done by the end of this year? >> i think it could. i remain optimistic about tax reform -- neil: rich, what about you? by the end of the year? >> i think their reputations, their lives are on the line -- neil: well, they were on the line with the health care thing, and they didn't seem to be able to get their act together. >> i think this one's different. i think they'll get it done. neil: all right. we'll see what happens. guys, thank you both very, very much. some sad news, you might remember charlie gard, the little british baby who was critically ill and his parents were fighting, again, the government there in a court battle to treat him with an experimentally approach in the united states. well, he has died. "the daily mail" reporting that little charlie gard is dead. we'll have more after this. potsch: you each drive a ford pickup, right? (in unison) russ, leland, gary: yes. gary: i have a ford f-150. michael: i've always been a ford guy. potsch: then i have a real treat for you today. michael: awesome. potsch: i'm going to show you a next generation pickup.

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neil: all right. president trump has arrived on long island, new york, where he'll be addressing sort of a broader concern about gang violence in this country, particularly from ms-13. it's sort of like a group that has sort of morphed into this threat, this gang threat that the president's going to argue is a result of unchecked illegal immigrant waves that come into this country and threat aren major u.s. cities and locales, even those that wouldn't normally have this type of threat to illustrate that this is an international issue. the president has with him nikki haley, of course, our ambassador to the united nations. when he speaks, we are there. meanwhile, the pentagon has confirmed that north korea's at it again. >>, launching another missile that appears to be an icbm. to former cia analyst fred new york city. hay just keep doing it and doing it here. mow the japanese are having an emergency session over this just as they did the last time, two weeks ago, they did this.

what's going on here, fred? >> well, there's two significant things here, neil, i want you to think about. first of all, this is the 82nd missile test under kim jong un. there were only -- neil: is that right? wow. >> 82, there were only 31 under his father and his grandfather combined. think about that. so, obviously, this program's making major advances. but we need to think about something else. how is north korea paying for these? you know, some of these missiles cost tens of millions, some of them cost hundreds of millions to develop. china is massively violating sanctions against north korea. this is obvious to. chinese companies are very involved in pyongyang, they are extracting minerals from this country, and north korea's cashing in to build missiles and nuclear weaponnings. neil: you know, i know we touched on that, the japanese are having another emergency meeting how to to deal with this, but how do they deal with this? >> well, the japanese are very concerned about a missile landing on their territory,

possibly by accident. they have warned north korea -- neil: well, this landed in their waters, this latest one. >> well, it landed in their exclusive economic zone. it did not land in territorial waters, but that's still too close for comfort for japan -- neil: what does that mean? sorry for the ignorance here, their waters and the economic zonesome. >> under the sea treaty, you have a certain area called the exclusive economic zone where you have the right to exploit the seas for economic reasons. but it's not considered your, part of your territory. neil: i'm wondering, you know, if the chinese are, you know, preparing as they are along the border with north korea, i guess 800 miles plus, just in case something happens. obviously, they're preparing for the u.s. to do something militarily, but that seems to to signal more willingness to prepare for that than to do anything to avoid that. right? >> well, i mean, china's played this game with us for a long time. they say they're going to crack down, then they don't.

they have cracked down a little bit this year. we know that shipments of coal and iron ore were turn back that north korea tried to send to china. i really hi we have to make the message to china that we really do want them to crack down and do things that makes china uncomfortable such as maybe moving our nuclear weapons back to the korean peninsula, shooting down sustain missiles and taking other steps that's going to paragraph north korea but also pressure china. neil: i know it's hard to calculate what would be responds. this kind of reminds you of the cuban missile crisis where the kennedy administration weighed different things, to others who favored an outright attack on cuba. but if we were to shoot down one of these missiles mid-launch, the north koreans have already said that that would be deemed a provocative act. now, they didn't say what the next step presumably would be, but what would be deemed to be a dangerous response to what is already dangerous provocation on part of the north koreans?

>> it's a difficult thing to discuss, neil, because everyone's concerned about provoking the north koreans -- neil: right. >> -- into doing something such as an attack on seoul. but on the other hand to, we can't kick this threat down the road indefinitely. and i think we're going to have to calibrate an appropriate response. there may have to be a naval blockade of north korea one day, possibly shooting down missiles. i mean, doing nothing seems to be an attractive option because of what seem to be dangerous alternatives, but i think we're coming to the end of that road. neil: fred, thank you very much. have a safe weekend. >> you too. thank you. neil: well, a lot of insurers are relieved by the repeal failure. normally, when i see that they're happy with something, that worries me. i don't mean to disparage insurance companies, but man, oh, man, when they're happy, i get concerned. should i be concerned? after this. ♪ ♪ whoooo.

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♪ ♪ neil: well, apparently -- were not big fans of this very watered down repeal effort, so they're happy et didn't go well -- it didn't go well. the president tweeting this morning, obamacare will have to fail on its own, and that it will.

paraphrasing here. speaking of the president, i was telling you before that anthony scaramucci, his new communications director, and reince priebus, of course, those two have been at loggerheads, on the same plane today but apparently in separate compartments which is probably a good idea. i wonder if they each bring food tasters with them, which is very tacky on my part. i could look at the very big picture can -- and, of course, now we have david asman on what happened here with this repeal failure. >> you are pretty catty today. neil: i tell you, buddy, i don't know. the two of them on the same plane together, i don't -- >> yeah, i know. as a journalist, i would like to hear what they have to say. it'd be very uncomfortable, but i do can want to hear it. anyway -- neil: yeah. first of all, apparently republicans are saying, all right, we're going to have to regroup on this. we don't know when, but it's looking pretty decide dead right now. >> yeah, i think so. neil: what's the posture they're takingsome.

>> well, they're trying to put lipstick on a pig. essentially, we've got obamacare. obamacare's enforced -- you mentioned before the insurers are happy. that also makes me uneasy, not only you uneasy. i don't like it because they very often look for bailouts, and they got a big one just in terms of the mandates. the mandates, of course, force all americans to have insurance. therefore, they've got a guaranteed audience of all these extra customers. of course, at the same time they're pulling out of a lot of the exchanges because there's so many sick people in those exchangeses that they're now unprofitable. but until there is a mandate by the government that they have to insure people in these exchanges, they can pull away from the exchanges, still get all of the customers because of the mandates and still get certain kinds of bailout. not the massive ones we had heard about before, but they are still entitled to the to certain bailouts from the federal government. meanwhile, medicaid is

continuing to explode, and that means if you're poor and if you have medicaid, you very often have better health care than the middle class. the middle class, who have to pay insurance, can't afford the high premium insurance policies, so they prefer the cheaper ones x. that means your dedeductible is up to $12,000. so if you're poor and have a medicaid card, you get treated. if you're middle class and have a $12,000 deductible in a private insurance company, chances are you're going to a avoid seeing a doctor, avoid getting tests, you're going to avoid the things that a may keep you healthy. so you actually are better off in this country right now if you're poor than if you're middle class. neil: i wonder, though, when the president and others -- and you can understand his frustration so close but so far, i wonder now with this temptation to let it sort of fall of its own financial accord, then what? >> that's a good question. then what. i mean, if it does -- first of all, the insurers, right now they're happy. you can look at their stocks,

they're a way up because of the fact they are guaranteed this pool of people buying into the insurance. but that may not last much longer because eventually they're going to have to start staying -- my opinion is if they allow obamacare to continue, they're going to eventually have to put mandates on insurers that they don't now have. they may not have the freedom in the future to skip out on exchanges. maybe they'll be forced to get into exchanges. the market is not thinking that far ahead. i think the market believes somehow, some way some of the worst aspects of obamacare will end, but not anytime soon. neil: i'm wondering, too, what this might telegraph for the debate back and forth on tax cuts. what are you hearing? >> i'm hearing that, in fact, if they don't get tax -- maybe the only good to come out of the obamacare debacle or the debacle in the attempt to repeal it is now they have to have a win on taxes. and there is sort of a

rededication on the part of the leaders not only to kind of figure out what they did wrong in trying to corral their members -- mitch mcconnell and paul ryan -- but also how to really focus on just the bare essentials of a tax cut. for me, that means what we're going to see are some very specific tax cuts rather than a generalized plan that would totally restructure our tax code. i i think they need a win sod badly before the -- so badly before the end of the year that we are likely to to see very specific tax cuts regarding corporate tax rates, individual tax rates very soon. specific rather than general -- neil: which means they'd expire in ten years. >> yeah, but what doesn't expire in -- neil: you know, you're actually right. people fixate on that. >> we should remember that the reagan tax cuts of '86 which were supposed to last for infinity, they were changed by bill clinton who came along in '92, so that was less than ten years. neil: you're right. i'm too young to remember -- i

know you are. neil: we'll follow a lot more on fox news on his own great show. waiting to hear are the president of the united states, he might spell out some of these other developments when he talks about ms-13 gang influence in the united states particularly in that neck of the woods.tr after this. prevent bleeding gums. if you spit blood when you brush or floss you may have gum problems and could be on the journey to much worse. help stop the journey of gum disease. try new parodontax toothpaste. ♪ .

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rising concerning growth of ms-13 and other gangs that have their source coming from abroad. so address the illegal immigration, and this is a particular virulent strain of that. dangerous strain of that, that is now nationwide, addressing this to a crowd in brentwood, new york, that is familiar with the group. cheryl casone to take you through the next hour. >> the big question, will he stick to script, or is the president going to go offscript? break right now as neil told you, president trump, looking at live pictures, brentwood, new york, going to make good on campaign promise to keep america safe. he's going to deliver a major policy speech on immigration and law enforcement. now, the president is going to warn violent ms-13 gang members, your days are numbered. hello, everybody. i'm cheryl casone in for trish regan today. we'd like to welcome you to