at best -- maria: they are getting a tax increase. dagen: they very might well. >> wealthiest president ever to raise taxes on the wealthiest. maria: great to see you, i will see you on sunday on sunday morning futures. stuart varney. stuart: football fans, whoa, they left no doubt, they respect the flag. good morning, everyone. thursday night football, the packers played the bears in green bay, the players linking arms all stood. the crowd, different story. they being asked to link arms for social justice, very few did. instead they waved the stars and stars, frequent chants of usa. nfl chief roger goodel spent hours meeting players and owners. inconclusive. no statement on enforcing the stand for the anthem rule. rush limbaugh says the left has hijacked the game.

all right, on the money front. there is trouble for the tax plan and it's coming coming froe house republicans. they oppose dropping the deduction for state and local taxes. nine high-tax states will take a big hit if the deduction was eliminated. 33 house republicans come from those states, if they ban together, they could kill the president's tax plan. and this is the last trading day of the third quarter, oh, what a quarter it has been. bottom line, if you were a stock holder for the last three months, you have done very well. the friday edition of varney & company is about to begin. ♪ >> i don't want it to be taken over by a bunch of wooses. use something beside the nfl sideline, use something beside the flag, use something besides

something people use to escape. stuart: rush limbaugh right there echoing some of the things that we have been saying on this program about nfl. liberals don't like football and the anthem controversy is just another excuse to pout on football. cleveland businessman alan jones instructed his advertising firm to stop commercials during nfl games. that man alan jones will be on with us on this hour in this day on this program. i think i've got that right. now later this morning president trump will address the national association of manufacturers. i have an excerpt of what he's going to say. when we grow american manufacturing, we don't only grow jobs and wages, we also grow the american spirit. when we purchase products made in america, fashioned by our fellow citizens, we renew the bonds of national loyalty that link us altogether. joining us jay timons.

what's the single thing that you most want from this president, this administration, the one thing that's most important to you? >> well, you know what, stuart, we just released our third-quarter survey of manufacturers and they say what you would expect, if we get comprehensive tax reform. we are going to invest in new equipment and hire new workers and that's exactly what america needs right now. stuart: you want the tax cut. how do we know, how does america know that you will actually hire more people with the extra money you get rather than raising dividends for your stock holders? >> look, i have the great privilege of working with manufacturers all across the country and i've been talking to small and medium manufacturers who are with us here for this event today and they are all saying the same thing, if they can get tax cut done, tax reform done in the right way, they're going to be hiring new workers in their plants, facilities.

in fact, our survey show that two-thirds of manufacturers of all sizes will do exactly that. stuart: do you have the skilled workers that you require? >> that is a great question, stuart. so we have 350,000 jobs that are open in manufacturing right now. by the year 2025 that number could grow 2 million vacancies. obviously working on that -- on that skills gap is a critical component of success in manufacturing. stuart: are you doing -- yeah. are you doing it yourself, apprenticeship programs or are you going to rely on importing the skilled labor you need? >> so we've got to do that here at home, right, and our manufacturers are stepping up to the challenge, they are working to -- to increase their skills, their skills training in their facilities and the administration as i started to say, we have an administration that's focused on it as well and apprenticeship program will be

beneficial for manufacturing in america. stuart: you will be at the speech today and we will be following it live. thanks for joining us. >> thanks, stuart. stuart: tax reform, here we go. president trump's tax plan for eliminating the deduction for state and local taxes. that's a big deal. that is is not sitting well with republican lawmakers who come from high-taxed states. fox news contributor byron york joins us now. by my calculation, there are 33 house republicans who come from high-taxed states. if that deduction for local and state taxes goes away, those 33 republicans are in deep trouble, they've got enough votes there to kill the deal, what's going on? >> no doubt about that. there are 240 republicans in the house. you subtract 33, you get way below 218 you need to pass something in the house. there's no doubt that they -- that any group of republicans who stick together on something

can stop legislation. on the other hand, this is a classic bargaining phase of this whole process. the white house has put out this framework, it has a bit more details than earlier sketches that they released but it's not at all detailed and what we were doing right now is we are all talking hypothetically. we are saying, gee, what if the standard deduction becomes this and then people don't use the home mortgage deduction and they don't do this. it's all hypothetical right now. stuart: goes away, doesn't it? if it's a bargaining chip and it's important and require 33 votes, you have to have them, killing that deduction, that's ended, that goes away, just a bargaining chip, right? >> we heard talk about compromise of some sort on something like that. you're right. the lawmakers from places like new york, connecticut, california, very high state and local-tax areas, deduction means

a whole lot more to them. there's going to be a big fight over the child care, excuse me the child tax credit, big fight about that. there's going to be a lot of issues that have to be worked out. on the other hand, i do think there's a fundamental desire among republicans to get this done and there's a lot of room to negotiate among themselves with it. stuart: okay, so handicap for it, byron, i say we are going to get a tax deal by the end of this year, probably on christmas eve, i say it's going to be done and you say -- handicap it for me, what are the odds? >> i agree with you this time because of a couple of reasons, a lot of lawmakers who still say, we promised this for seven years, we do not want to face the voters next year and say, well, we had the white house, we had the house, we had the senate but we couldn't get it done even though we promised it for so long. stuart: you just can't do that.

>> exactly. this is something they haven't been able to agree among themselves for a long time. now they have this chance, they have failed with obamacare and they have to do something. stuart: they have to do something. all right. friday morning, have a great weekend. we will see you again soon. >> thank you, stuart. stuart: yes, sir, how are we going to open this market, down a few points for the dow, up a few points for the nasdaq. i'm going to call it a pretty flat opening, let's see how the day goes. now this, at the sum early glitches, amazon's first nfl live stream eventually went smoothly. people in 149 countries streamed the action during first half of the game. packers-bears. chief correspondent with mashable, okay, glitches, at least in the early going, not a big deal but at least in early going. a lot of people think we are going to move all toward streaming, forget cable tv when it comes to football, i would suggest that infrastructure for streaming ain't in place yet?

>> one, yes, we eventually will go all to streaming. this whole landscape of television watching is going to change in the sports specially because you want to watch it live, that's right at the forefront. the problems that you saw are not uncommon, seems that it happens early. it's what you call scaling issue. they're not entirely anticipating the number of people that are going to hit the stream at the very beginning. we saw similar issues with hbo go in mcgregor-mayweather fight. stuart: right, they can adjust. >> if one can adjust is amazon. they have so many servers sitting there, they light them up, oh, okay, we have more demand than we expect, they pump it up. it's always about being prepared up front. companies like microsoft, companies like apple, company like google, all of these people are going to be ready to serve -- have service on the back-end to serve these services and consumers want this.

why? because if you read how amazon served up the game, it was on all platforms. wherever you wanted to see the game, fire tv, through your mobile phone, through the website, you could see it anywhere and also 149 countries means everywhere around the world. so breaking down barriers. ease of use, on demand, this is what people want and they're tired -- stuart: this is what they're going to get. >> absolutely. stuart: and it's going to work? >> 100% it's going to work. stuart: i have to get to the apple iphone 10. apple said nothing but there are reports of a production delays which make it until february. >> two things that they are talking about romeo and juliette components for two-depth image on front of screen and the screen itself, top to bottom all-lit screen. there are some people reports are saying that they have having some issues producing enough of

these components to make the products in time for the november release and we've actually heard rumors that it might get push intoed next year. apple ends to deliver. so they're keeping quiet about this. i would be shocked. this would be a really big deal if they slip and they can't actually deliver in november. that's very unlike them. what i think will happen is they will absolutely deliver in november but in limited quantities which is kind of what we expected anyway with 1,000-dollar phone, they figure the demand would be lower, that could be a slight miscalculation because people want the latest, coolest thing. stuart: listening to you i might be incline to buy apple at 153. thank you very much for flying in. 1:00 o'clock this morning to be on the program. >> you're the only reason i did. [laughter] stuart: you're all right. thank you. where are we going to open this market? dead flat is the answer. down maybe 10-15 points. that's it. president trump, he keeps the

tax reform going before speech later on today. he's going to say his tax plan is all about restoring fairness and unifying the country. you will hear it here about 11:25 eastern. good news for anyone who has struggled to build ikea furniture. worst words in the english language. task rabbit, let's you hire someone, deliver it and set it up in your house. i want it. liz: saves a lot of marriages. [laughter] stuart: this is ford's few f-450 super duty pickup truck. most expensive mass-produced pickup truck ever. you want one, it will cost you, ashley, a hundred thousand dollars. ashley: 94,000. stuart: don't be picky. our friend featured in the new york postpaid -- post paid six.

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stuart: look at this. big pop for roku yesterday. went up 68%. that was yesterday. that's premarket today. it will go up another 10% on its second day of trading as of today. all right, now, look at this headline, new york post lieu gohmert informed trump of his power, apparently it's all about lou, hey, you can fire -- i will get to that in a second, first, you told the president, hey, get out there and fire mueller, is that what you said? >> no, actually, i didn't tell him to fire mueller. i did point out, though, that

the the day comey testified that there was no evidence of collusion between rump and russia, that would have been a day he could have fired mueller, mueller knew it and that's why mueller leaked out that night that he was now investigating the president for obstruction of justice. mueller intentionally did that so that then if the president fired mueller, it would -- he would be accused of another saturday night massacre being nixonian. you can't fire mueller but you have got to appoint someone -- when you go back and look at the guy who wrote the stories, he admitted to, scmit with the new york times and you can google and you start seeing the relationship between things that were leaked by -- groups where comey was likely the leaker, you

find out comey has likely been leaking many things, some maybe crime, some not, certainly bridges of ethics by the fbi directer but the relationship as the washingtonian reported between mueller and comey is so tight. comey believed mueller was the only guy he could ever trust that would be there through thick and thin and mueller, therefore is completely disqualified from being able to investigate anything in which comey is involved with as witness. so the president needs to appoint another special counsel just to be investigating comey's leak. by the way, mueller is so clean and all, go look at the ted stevens, case, biggest case under mueller as fbi and after he was convicted, one of the fbi

agents, a guy named joy, he was a wristle blower and leaked -- the lead agent hid evidence, manufactured evidence and they created a fictional case against stevens, not only was stevens not guilty, there was reasonable doubt that the fbi hid evidence to completely -- stuart: i'm totally lost. totally spinning. i can't follow all of this. you know, i really we wanted to ask you about the flag. it's gone. i don't have the time. come back again and explain it, please. thank you so much, louie. puerto rico. dozen offense people lining in dock of san downhope to go get on board of caribbean crew ship. 2,000 people did get on the ship. then it heads to st. croy where it will pick up 750 hurricane

victims. we are on it. more after this

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which is why comcast business delivers consistent network performance and speed across all your locations. hello, mr. deets. every branch running like headquarters. that's how you outmaneuver. stuart: more than a week after hurricane maria hit truckloads of vital supplies are moving rather slowly around puerto rico. what's the problem? ashley: supplies whether it's

oil for generators, gas for generators, you name it, it's getting into ports and slowly recovering. there's a bottleneck because of infrastructure, roads and bridges are still devastated. you have all of the aid piling up at the sea ports and airport, now they have a shortage of truck drivers to actually transport goods. the help is there, getting to people that need it. putting out sos, if you can drive a truck, please help us out. truck drivers from the u.s. are getting over to puerto rico to help out. stuart: three-star general been appointed. everybody reports to him. ashley: correct. stuart: get on with it. liz: love that. stuart: facebook sending a team to get the island back online. how do you get them online without power? >> internet drone team, facebook was testing beaming, satellites, drones and lasers. they will put that to the test

in puerto rico. what's happening in 90% of cell towers knocked out. families can't get in touch with other and facebook going in there with internet drone team to help puerto rico get hooked back up to the internet to get help faster. we saw this with the gulf of mexico oil spill. that launched the drone industry. the drone industry got launched by the oil spill in gulf of mexico to survey the damage. this could help this move, right? ashley: that's great, but your device, you can't recharge it. liz: that's important point. ashley: how long is the battery life in your device. stuart: drone delivery of internet service, interesting. we are going to open this market in 5 minutes time and we will be down just a fraction. we closed yesterday way up there. let me see, i can't remember where we closed. 22,381 for heaven's sake, we will open only a few points down from there. we will be back.

stuart: we will open this market in about 25 seconds and when we do, we might go down a fraction, we might go up a fraction, actually. we closed yesterday at --

22,381. we started out the day after the election at 18,100. i'm trying to do the math real fast here. that's 4,200 points up since donald trump was elected president. it is 9:30 eastern time on friday morning, we are off and running and down, 25 points down, still down. s&p 500 is down .35. i'm going to call that absolutely dead flat and nasdaq is absolutely dead flat, no change whatsoever. that looks like premarket open. there you go. nasdaq is actually up a fraction, dow down 26, all right. do take a look at apple. there are reports, continuing reports that the new iphone 10 might not be on the store shelves before christmas. we have not heard from apple on this. the stock is holding around 153. amazon jumped into the nfl streaming business last night, they streamed the green bay packers game, we will have more

on that in a second. the market is pushing amazon stock at 960 as of this morning. it's friday morning. we have with sika. all right, jeff, what happens if we get a tax cut in place before the end of the year, does the market go up some more? >> of course, but i'm going to flip the screen right now. here is what people aren't talking about. you had pence out saying before christmas we are going to get tax cut. this market under expectations. if we don't get the tax cuts, look out, the market is artificially high in an anticipation of the tax cuts.

i will do a back flip. if we get them it'll be fantastic, but if we don't get them, it's going to be a problem. liz: don't you love jeff. look at what we have added, $29 trillion in stock value since 2009. stuart: since the market bottom in march of 2009, value of -- liz: u.s. equities. stuart: $9 trillion. i call that a rally. liz: heck of a rally. stuart: notwithstanding north korea and obamacare. liz: russell is reaping higher on tax cuts. stuart: and -- andy puzder. what happens if we get a tax deal by christmas? >> i agree with jeff, it'll absolutely go up. if we don't get one, however, something that could offset that

could be good number in gdp like we got for second quarter. now third quarter is going to be down. we have storms in texas and florida and puerto rico, but if we can rebound in fourth quarter and we should bounce back, that could offset the republicans not coming up with a tax plan. look, they have to come up with a tax plan. there's no third option here. you have to come up with a tax plan. stuart: i agree with you, andy. >> a promise they didn't live up to and they can't survive that. liz: this could be an october surprise if they don't do it. the market could go down to jeff's point. stuart: i don't know the timing of tax cuts and i don't know the maneuvering. i don't get that quite frankly. liz: annoying. >> you can't underestimate the incompetency of this congress. it seems obvious that they should get passed lu both see what happens. investors love to -- they love to expect things, they love to train in advance of things and

that could be a problem. stuart: wait and see market with dow industrials almost at record highs. ashley: consumer spending down in august being actually killed by the sales, that's the problem. that's why we are a little low. stuart: i have a question to 14u watch andy puzder? >> no, i'm taking a vacation from the nfl at the moment waiting for people to stand up for the national anthem. i may watch once they start doing that again. i would say that the streaming in roku, you put those things together, this is a real issue for traditional cable television. you've now got real challenges the way people watch television and real stuart: by the way, the green bay packers fans left no doubt where they stand.

ashley: saluting. stuart: no doubt where they stood, whatever the players and the owners choose to do. whole foods says hackers tried to steal data from credit card swipe machines. whole foods. liz: this is a really bad story, why, because those boxes that you swipe your credit card through, it's also the debit card, it's also the chip card, remember we all had to switch to chip cards. now chip cards are not secure, when you stick it in the machines, it looks like hackers are planting malware in the boxes to steal your information. we saw this at sonic foods, we saw it at chipotle, wendy's and target and now at whole foods. this is really bad. it's also the chip-insert card too. stuart: there you go. all-time high. s&p 500, indicater, 2,512, up record high right there.

another story on wal-mart going after amazon's online business to some degree. they have launched a private-label brand through jet.com. more than 60 food and household items like cereal, for example, what's the deal? ashley: you gave the whole story. bottom line is better quality than many national brand names. that's the key here. they bought jet.com for 3 billion last year. they believe this is the way to go. as you say a big focus on breakfast cereals. also competition on amazon. food producers would like to deal with anybody else. stuart: wal-mart tough competitor to amazon. >> i think in this particular case the way they could beat amazon is they need to lower prices. they have to be drastically lower to amazon. liz: costco with private label -- stuart: i love it. andy puzder, wal-mart, the best

competit does something that breaks into amazon's business. i think wal-mart is best positioned to do that because of their national presence but at some point somebody has to break in, i are certainly positioned o do so. stuart: seven minutes into trading session. last trading day of the quarter and we are down 30 points. that's it. no big deal. the price of oil, we followed it recently because it's gone 50 to 51, yesterday 52, 51 this

morning. go gopro, first device for virtual reality videos. ashley: say that three times. stuart: not going to do it. eleven dollars a share. talk about taking a hit, southwest airlines, they say they lost $100 million from natural disasters this quarter. when you say lost, i believe -- revenue that did not come out as oppose to flat out loss. big deal. stock is up 18 cents. would you pay $94,000 for pickup truck? that one right there is the new ford f-450, 94,000 bucks, would you buy one seka? >> the more i learn about it, the more i want one. this is the bentley of pickup trucks. this truck has 360-degree

cameras, american truck made by ford. you roll up in this thing, people are going to take your seriously. liz: gorgeous. ashley: i would hope so. [laughter] stuart: lizzie said it's gorgeous. would you buy one? i bought one, i bought the ford-150 two weeks ago. >> my protest against detestable tesla. [laughter] >> rafter pickup a month ago. stuart: no you didn't. most of the viewers don't know what a raptor is, way off the ground. you drive one of them, puzder. do you have a ranch or something? >> it's my second one. i bought one in 2012. i sold it to my son. i bought the 2017, incredible

car. i drive it even more -- i have a sports car as well. i drive the raptor more. i'm in tennessee. you have to drive in truck. it's a wonderful truck. stuart: dunkin donuts chief says delivery will be the next revolution, millennials demand it, apparently. andy, back to you, you ran the company that's parent of hardy's, carl's, jr. is delivery the next big thing? >> absolutely. they don't hang out at carl's jr., mcdonalds like kids did when i was young, they stay home, play video games and they want food delivered to the door. this is a challenge for a lot of companies. for example, mexican and italian deliver very well, burgers,

fries, they don't deliver so well. somebody has to figure out how to deliver food -- liz: i want my doughnuts. stuart: ladies and gentlemen, i have proofed positive that president trump watches this program. the president just tweeted s&p 500 at a record high. moments after we put it on the bottom of the screen. thank you, mr. president. [laughter] ashley: give us a call. stuart: i have to say good-bye coandy -- to andy puzder and jeff seka. pulling his ads from nfl games, he says his companies will not condone unpatriotic behavior. he is going to join us in a moment. chicago public school teaches defacing an american flag, they stumped on it in the school's library. the principal of the school is

defending teachers saying it was a lesson on first amendment rights, welcome to america, everyone. we will be back

stuart: where are we now? we are 15 minutes into the trading session. down 30 points holding around 22,340. we have google building a rival to amazon's echo show. that's the alexa device with video screen. nicole, is this why google pulled youtube from the echo show? nicole: oh, yeah, for two reasons. first of all, if i say to you i want a manhattan, i don't mine the drink. i would mean google's new product that's coming out to view youtube, they pulled it off amazon echo to watch it there and they are also sacrificing the viewers from amazon. they said it was a broken

experience. you weren't seeing youtube just the way they wanted. in putting together this smart the manhattan, google's way to take it on in the digital world and streaming with youtube. stocks up 1%, stuart. stuart: we will take it, nicole, thank you very much, indeed. all right the nfl anthem controversy, cleveland businessman alan jones instructed advertising company stop airing in nfl games. good to see you. >> thank you. stuart: you came all the way to new york to sit right here. >> from cleveland, tennessee. [laughter] >> the biggest cleveland in tennessee, by the way. stuart: what was the moment when you said, i'm not having this, take my ads off? >> i guess i is that it get started and i didn't think a whole lot of it and fell aside and got bigger and bigger, you know, i'm a patriot.

i'm a patriot first and this is about the flag. this is about the country. it's not about anything racial. we stand together for our country, black and white and we stand for the flag. i'm also kind of a historian and i know all about francis scott key, why h he wrote the star spangle banner. i'm 64 year's old. we have never not stood for the star spangle banner. stuart: right. >> it got to the point -- listen u i'm a small fry. we are small plyers. 900 location. we ain't the mercedes. we have 900 locations. stuart: that's stores? >> short-term lending company. check and cash. the oldest tailored-made company

in america. i brought you one of the fur coats. [laughter] >> cat man socks direct from key west and you have to sit there to negotiate about those. stuart: i like it. hold on a second. we have delaney walker, i believe he plays for tennessee titans, hey, if you fans don't like me taking the knee, stay home. he plays with tennessee titans, what do you make of that? >> well, i'm saying home. i'm going to do what he says. we have pulled our ads off the air. see, we are a small player but also like the car dealer in fort wayne, indiana will pull theirs off the air. that's a big deal when you take this in the country. stuart: how long before you put your ads back. >> my introductions were for the

season. stuart: okay. you're out for the season. >> i'm out for the season. stuart: are you watching nfl on tv? >> i won't flip through the channel to pass it. stuart: you won't? a bit far with this, don't you think? >> i had enough. i love football. saturday the university of georgia is coming to tennessee on saturday. i will be there. i'm a huge fan. stuart: in college where we have not seen anything like this at all where rules are in place, do they play anthem at college game? >> yes, they play it in high school. in fact, when all of this thing broke loose i was at my granddaughter's seventh grade football game and we stood, stood there for the same thing. seventh graders. stuart: alan, pleasure having you on the show. thank you very much for being here, sir, we would like to hear from you. >> thank you. stuart: where are we on the market, that is? check out the dow 30. a lot of red i'm afraid. we are down 31 points.

congressman steve scalise speaking to his congressional colleagues three months after being shot at baseball practice. his faith in god very much on full display. it was an emotional moment. more on that in a moment what did we do before phones?

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>> it starts with god. [applause] >> when i was laying out in the ball field, the first thing i did once i was down and i couldn't move anymore is i just started to pray and i will tell you, it gave me an unbelievable sense of calm, knowing at that point it was in god's hands. stuart: you heard it right there steve scalise during emotional return, he invoked god and talked about praying during the shooting and his recovery. author of new book, a place called heaven, ten surprising truths about eternal home. roberts, i noticed this a lot this year in public life in america, god is invoked, prayer is invoked, the spiritual life is invoked openly, publicly. is this because of the trump

presidency? >> well, i think it certainly made the atmosphere more open to that kind of sharing of faith, but, stuart, i have to tell you steve scalise testimony of faith was one of the most remarkable testimonies i have ever heard, but it's not an isolated case. just yesterday i was in fort myers, florida, a city hard-hit by hurricane irma and i heard similar stories of god's miraculous care and provision and i think testimonies like these about the reality of god should cause atheist to reconsider position. stuart: your book answers ten questions. let me pose a question which is often posed to us here on varney & company. why does a loving god allow such terrible catastrophes as irma and harvey and earthquake in méxico, why does the loving god allow that?

>> well, you know scripture doesn't answer that. joe asked the same question after losing children after natural disaster. god never answered the why question. joe, that's above your pay grade to understand. he assured joe that he was working. the message of hope in my book, a place called heaven is the suffering we experience in this world is real and temporary. god has a better place he's repairing for us and it's the place called heaven. stuart: all right, we are listening. robert jeffress i'm cutting it short. robert, we will see you again real soon. that's a promise. now, president trump meeting with hover fellow kevin, this meeting about fed chair job. liz: he is considered a friend of president trump. the youngers fed ever appointed by george w. bush in 2006 rchlt

he did not like the money print to go rescue the financial crisis. he has talked often about animal spirits, what gets companies going is when ceo's and board directors get excited and excited about growing companies. stuart: he's not the only candidate of the job. one of them and he's meeting with the president, which says a lot. now, next case the main sticking point in the tax reform package is getting rid of the deduction for state and local taxes. big theme among the program today. we are all over it. coming up at the top of the hour, we will discuss it. president trump with tax reform push in about 90 minutes from now. stay right there because you will see the speech. because i am cured with harvoni.

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stuart: you could see it coming, a revolt. politicians, both democrats and republicans are up in arms about

deducting state and local taxes. yes, there is a proposal to end that deduction. that's a very big deal. especially in states where local taxes are high, and the deduction is very important. new york and california in particular. you cut that deduction, and high-income people might actually end up paying more. that is a problem for 33 house republicans who represent distributes in high-taxed states. they want to support the president's plan but if that deduction goes, their own voters take a hit and so will they in next year's elections. serious implications here. do the math. in the house the tax plan can only afford to lose 22 votes f those 33 republicans ban together, they could kill the whole tax deal. it is fascinating. especially reaction of the 18 senators from the nine highest taxed states. they are all democrats. what will they do? don't they want to tax the rich?

of course they do, but not if it costs them their senate seats. bottom line, to get the tax plan done, the deduction for state and local taxes probably has to stay. the second hour of "varney & company" is about to begin. ♪ stuart: all right, one minute past 10:00 eastern time. we just received consumer sentiment read. ashley: 95.1, which was a little under. so what -- 128.6. but 95.1 is little lower than expected. down from august. earlier today we got the consumer spending which was a little off as well. what you can get, consumers are like, let's wait and see how this pans out especially tax reform. auto sales have been killed last several months, last six months.

that is hurting consumer spending. we're still relatively optimistic. stuart: mild negative, not affecting dow down 24 points as we speak. we should tell you s&p, the s&p 500 index, that did indeed hit a brand new, all-time high a little earlier this morning. president trump tweeted about it too. how about those big tech names? we check them all the time because that's where the money has been going. most of them are up except apple which is down a buck, back to 152. how about roku? it was up 68% yesterday in the first day of trading. up another 20% today. it doubled the offering price. came out at 14. now it is at 28. got it. get back to what i was calling a revolt over tax reform. the sticking point in the package is, the deduction for state and local taxes. here's what gary cohn, the president's top economic

advisor, here is what he had to say about it. roll tape. >> you can find me someone in the country that their taxes may not go down. remember, we have 50 states. we have counties. we have cities. we have long-term capital gains. we have short-term capital gains. we have all difficult types of structures in the tax code, i guarranty you could find someone, maybe one person the taxes may not go down. stuart: that's for sure. if you end that deduction, the amount of tax money actually paid by relatively wealthy people will actually go up, even if you cut the rate. you cut the deduction your taxes go up. i think i'm right. fox news contributor tammy bruce will straighten me out. am i right? >> this is interesting reminder to the people in blue high-taxed states they're paying high taxes. when you have got the deduction it take as sting owl a little bit as well. it means the rest of the country is subsidizing those states. stuart: yes. >> doesn't mean that people still wouldn't be hurt. previous reports about people

unsure about obamacare and those premiums where the money is, it is important debate but remember the president's proposals are just. those are negotiating points. even if we took it to 50% or a percentage of the tax you're saying, at least individuals in those states will have to consider wait a minute, why am i being taxed so high where i live. stuart: good point. >> what else can we do here? isn't this the state's responsibility as opposed to the federal government's responsibility to bail them out? so that has to be dealt with. stuart: ending deduction is the bargaining chip. you don't have to say, the whole thing stays. you could say, only deduct a half of the income taxes you paid to the states. >> if you eliminate all of it, 1.3 trillion over a decade what we get back at federal level effectively, help with entire rest of the nation. it is a huge amount of money when we discuss what this nation is going to need.

look at arguments regarding puerto rico. where is the money? how quickly can we aid americans in puerto rico when we're subsidizing over a trillion dollars for americans on the mainland with high taxed blue states with liberals piling with entitlements, spending, spending, state has are having some economic trouble certainly illinois. why is this still happening? this is an important conversation to bring into the light. stuart: it is indeed. tammy stay there please. more for you later. bring in congressman roger williams, republican from texas. people who live in high-taxed blue states, new york, new jersey, california, connecticut, illinois, worst affected if you get rid of deduction for local taxes people in the states pay. roger williams, republican from texas. now you're a no tax state. you don't have an income tax in texas. in fact you, sir are subsidizing people in california, new york,

et cetera, you're giving them a subsidy. so i take it you want that deduction to be taken away? >> well, look it, there is a lot of conversation right now. the tax plan that we've come out with, stuart, or the president has come out with i think is very good. i have been talking about this since 2012 with my jump-start america program. there are negotiations to be done. we have to get taxes down. we have find a way to pay for it. stuart: at the end of the day it is bargaining chip. the idea, you end deduction for state and local taxes, a bargaining chip, will it be taken away, forget that idea? >> we'll see. what i'm interested we have to talk about deductibility of interest, they're talking about as pay-for i think hurts main street america. we have the plan. now the negotiations begins to take hold, and i understand, if you've been deducting it, that is going to ablow. the problem we've got to

understand, job growth and economic growth will help pay for this. you have to still get back to the government getting smaller to make this work. stuart: congressman, real fast, another subject here. your district in texas was hard hit by harvey. we're hearing reporting of a lumber shortage in your state? can you update us on this? >> well, look it, there is a lot of building going on. a lot of building needing to be going on. our economy in texas was pretty good before. now there is a lot more needs that there were before. there very well may be a shortage. there is a million cars underwater. there will be a lot of issues need to be addressed. home building, lumber, equipment will be that. we'll find a way to make it happen. entrepreneurship will begin to take hold. stuart: did you say a million cars affected, a million? is that right? >> well the numbers are between 500 and one million cars are literally underwater and they will have to be replaced.

so that is another issue people don't think about. we have to get people back on highways to get to their jobs and get kids to school. stuart: you got that right. sir, thanks very much for joining us this morning. i didn't realize quite so many cars underwater in the great state of texas. thank you, sir. appreciate it. >> okay. stuart: how about this? oprah winfrey tweeting this about a possible run for the white house. here it is. thanks for your vote of confidence. she tweeted that in response to a column saying she is the democrats best hope in 2020. what do you make of this, tammy bruce? >> i don't know if the column by jon podhoretz is a necessarily a compliment. because trump is president, oprah would be the next natural person to counter him. oprah started after six years not being on network television, she started with "60 minutes." they will have several panel shows with her there. remember when it comes to politics, her show ratings dived

after she endorsed barack obama. people didn't want oprah winfrey to be involved in politics. she was very much representative of transcending partisanship. her show ended, she had to, she is very wealthy woman, because she has done well for obvious reasons her own network. she said being back on cbs was like coming home. so i think, look, she would admit she is an entertainer. she said a few months ago she has no interest running for politics. the experience she had getting involved in politics has not been good for her. she expressed in disappointment for second term of the obamas. she enjoys being back on tv. being with the audience she enjoys more. this is good for some publicity but i don't think it is serious at all. stuart: not serious she would make a run? >> not presented as serious. may in fact have been an insult to the president or what is happening in the country. mr. podhoretz is never trump

per, not happening what is -- not happy with what is happening in the nation. stuart: democrats don't have a obvious choice for presidential candidate in 2020. >> they don't have a obvious party. they're a weak, coastal club. not only democratic party as a whole in trouble, we don't know who those talented individuals who might come up who are classical liberals where they would stand. stuart: they will look for someone with name recognition out there in the public eye. everybody knows them. >> people love oprah. >> they do love her but don't love her as much involved in politics. we found out during the obama years. she recognizes that. stuart: only time will tell. we never are supposed to say that in journalism. we do it all the time. check this out. we like this story. that is a new pickup from ford. it is the ford f-450.

lets toe trailers weighing more than 30,000-pounds. has 360-degree camera coverage. heated ventilated seats. not sure about the massage. liz: looking for that. stuart: how much set you back in 94, $95,000. >> go to the moon with your tiny home hooked on the back. stuart: love every penny. love those things. this week we officially received the details on the president's tax plan. he called out three indiana businessman in his speech. john gannon was one of them. he will tell us how the president's plan will help his business grow. the nfl, i will call it chaos. fans at last night packers-bears game made it clear where they stand when it comes to the protest. the always outspoken fox sports 1 host jason whitlock with us later this hour. you're watching the second hour of "varney & company."

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>> he is the father of nine children and recently celebrated his 35th wedding anniversary. congratulations, john. stuart: president trump mentioning our next guest during his tax reform speech in indianapolis. that is john gannon, custom and fencing decks owner. welcome to the program. >> thank you, stuart. it is an honor to be here. stuart: you're more famous this morning, not because the president picked you out of the crowd, but because you have nine children. you realize that, don't you? what was it like when he pointed to you and pointed you out? >> i didn't expect that. it was quite an honor to be

there. last time i was in the presence of a president, believe it or not was president nixon when i was in grade school in california. so it was quite an honor to not only be there, but be pointed out by the president. stuart: you didn't know it was coming? you didn't know he was going to point you out in the crowd? >> no, there was a chance he could mention our business we were told. in the meet-and-greet we got to meet the president, there was a possibility, but no guaranties. stuart: you run a fencing company and there was sort of a humorous moment when the president spoke about fences. roll that tape. >> we'll get it all down, but think of that, $50 million. now i assume it's a strong fence. [laughter]. okay? so, john, do you think you could do it for slightly less than 50 million? i think you could take 49 off right now, we would have plenty of profit, right john? right? it's crazy.

stuart: president was talking about a 50 million-dollar fence around the white house by the way. he said, john, you think you can get it done for less? we never got an answer to his question from you. you want to answer it now. >> well i did shout out, you bet, but as far as the taking the 49 million off, i'm not quite so sure about that. stuart: the president is going to speak, well he spoke in indianapolis about the tax reform plan. what is the big deal in that plan for you, and your company? >> well there are several things, but, the, the rate, the corporate, small business rate dropping, from 28, to 33, down to 20, that is pretty exciting. that is a major hit for us. stuart: if you get the extra money, if you take home, that extra money, are you going to hire more people, or are you going to spend it elsewhere? will executives in your company

get more, for example? >> i'll tell you what, i have to talk to my wife about that. but actually, no. what it, the main thing it would do, we could actually bring prices down somewhat, pay our guys a little more. buy new equipment, possibly hire new people. it's a really big deal. that is a major drop in the tax cut in the tax code. stuart: what we want to hear what is a big deal for you. john gannon, father of nine, married for 35 years. we like this stuff on this program. thank you very much for being with us, john. real honor to have you. >> it is an honor stuart, thank you. stuart: he does have me beat. i have six. i do have nine grandchildren. ashley: okay, all right. stuart: how about this? this is the latest idea from tesla's chief, elon musk. he wants to fly people around the world in under an hour. now, ash, this is pie-in-the-sky dreaming. >> literally. this is elon musk.

he was giving a speech in australia, mission to mars, getting there in five years. floated idea, i use the word floated, you know what? we could use the same spaceship to move people around the earth go anywhere, literally less than an hour. in other words, we could have launch pad on hudson river go from new york to shanghai in 39 minutes. go from l.a. to new york in 25 minutes. new york to london, 25 minutes. all pie-in-the-sky. he said once you get the space vehicle out of the atmosphere, it is smooth as silk. no turbulence. you can float down to the next city. you can go anywhere in the world from anywhere, less than an hour. stuart: but you have to get out of the earth's atmosphere. ashley: he didn't say how much it would cost and all rest of it. forget the details. less than 100 people can get on this thing. you know. stuart: he has a way of making a headline. ashley: one of the great forward

thinkers of our times. details and cost and feasibility, well that is another thing but nice to dream, right? stuart: the stock is over 350 bucks a share. about an hour from now president trump will take to that podium or that lecturn, whichever you prefer to continue his tax reform push. this morning it is all going to be a manufacturing. we'll take you there live when it happens. you will see the president. ♪ ♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ well i'm gone

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that's the lowest price out there for one line. and you can get the same price on up to five. see how much you can save when you get unlimited on a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. stuart: i think we should call this the stock of the week, roku. it was up 68% yesterday on its first day of trading. today is the second day.

it is up another 20%. that thing has doubled from the $14 offering price to 28 as of right now. what a stock. the state department has stopped issuing visas in cuba to people who want to leave cuba and visit the united states. the state department has also pull embassy staff out of cuba. they're urging americans, don't travel to cuba. what is going on? liz: this is in response to what it thought to be sonic boom attacks. to american families and who stayed in hotels and other cuban residences. 21 families suffered maladies. permanent hearing loss, headaches, concussion and nausea. it is thought to be sonic booms. they don't know what is going on with these attacks. so the u.s. stopped issuing visas to cubans. they're pulling more than half of u.s. diplomat and their workers out of cuba. they're warning americans, do

not travel to cuba. stuart: relations have gone downhill, have they not. that is direct attack on american diplomats and that is a dreadful thing. ashley: yes. stuart: we don't do that. good lord. more than a week after hurricane maria, truckloads of vital supplies are moving rather slowly in puerto rico. what's the problem? ashley: theproblem, a, infrastructure, roads and bridges are still devastated. but you have all the relief aid coming in through the airports which are slowly recovering and seaports. they don't have any truck drivers. the puerto rican truck drivers putting sos, if you have a license, know-how to drive trucks during the day and night, help us out. we have shift these supplies, whether it is gas for generators, whatever it is, we need to get it out to people that need them. you mentioned earlier, it is true, a three-star general will be called in. he will call all the shots as fema as all other government agencies trying to get the island back on its feet the it will take a while because the infrastructure is so damaged.

stuart: got it. we've got i.c.e. agents making nearly 500 arrests of illegal immigrants just in the last week. isn't this just the tip of the iceberg of course? that is a good question to ask. texas attorney general ken paxton will give us his take on that. president trump's tax plan calls for eliminating deduction for state and local taxes. that is not sitting well with some republican lawmakers from high-taxed states. we are on it. ♪

♪ stuart: yes. they're playing this because they know i hate it. they know this is the one beatles song that i hate, so they play it for me. get me in good mood, that is not the way to do it. desmond said to molly in the marketplace, get out of here. dow is down 1points. big name, let's check them please, we're down only on apple, 76 cents. they're on the upside. walmart it is e-commerce site, jet.com, about to launch the first private label brandish issued by walmart. it plans to introduce more than 60 food and household items. this is another attempt to go after amazon. got it. now there is a plan to eliminate state and local tax deductions against your federal taxable, tax return. come on in, matt schlapp, chair of the american conservative union. you know, this is a problem,

matt, for 33 republicans in house that come from high-taxed states. if you get rid of deductions for high state taxes, rich people, they put 33 republicans in the house, they lose a lot of money. this could unravel the whole deal. >> house majority, house republican majority, goes through california, new york, illinois, some of these high income taxed states. it is precarious move for the members. when you cut taxes, in the process of cutting taxes if you feel you have to pay for it by raising other types of taxes, comes out a kiss your sister moment, it will not have stimulative effect you're trying to get.

stuart: i think it is dead. if you lose 33 votes of republicans in the house, you don't have a tax deal. i would suspect this is bargaining chip, it will be taken off the table. >> you might be right. let me give you conservative point of view on this question, generally, california has run amok. texas, new york is a high taxed state. illinois is a high-taxed state. all run by left-wing governments. they're raising taxes raising taxes. why should all rest of american taxpayers have to subsidize california's addiction to high taxes? stuart: fair point. absolutely fair point. you're right on with that one. handicap it for me. with these controversies which deduction and how much, do you think we'll actually get a tax bill done, signed, sealed delivered by end of the year? >> i think there is a good chance but i think republicans in congress are going to have to move away from this concept of pay-fors. i think less and less of this bill needs to be paid for. once again, stuart, when they

say pay for, they raise other taxes while they cut tax rates. in the end, this is 1981 when reagan came in and slashed taxes to get the economy moving. too many people are viewing this as 1986 when he later passed tax reform that was revenue neutral. right now, we have to cut these rates, pair that up with stopping of regulations, and get this economy moving again. stuart: would that work in the senate? there are plenty of deficit hawks in the senate, and if you don't pay for these tax cuts, you do actually run up the deficit, at least first couple years. it only pays for itself later. first couple years, that deficit really goes up. will they stand for that in the senate? >> stuart, they will try it their way. they will try it finding pay-forss. if you're right as we started interview. they stubbed their toe. because the pay fors prove to be politically unpopular. i think they will have to move to reality of maybe there are some closing of loopholes that

some people like to call them or reduction of deductions, but pay for less of it. let's get this economy humming. republican presidents get reelected. republican senators get reelected when economy is growing. guess what? the voters take it out on them. stuart: do you think some republican senators oppose president trump on almost personal grounds? they don't like him? >> i agree. i think there is a whole group of republican members congress that would be very happy if donald trump was overseeing a skiddish economy and he was unable to be reelected. i think, i think, they need to understand that we ought to start working together for this trump agenda, because i think the voters are going to take it out on congress more than they will take it out on president trump. stuart: you have got to get it done. >> got to get it done. stuart: got to cut taxes. stimulate the economy. can't do that, what is the point of electing republicans.

>> that's right, stuart. whatever happened having character you don't intend to do these things, don't want to stand for republican agenda, quit and go home, give somebody else a shot? stuart: that will be the last word. i agree entirely, matt schlapp. 100%. thanks, matt. see you soon. >> take care. stuart: staying on politics. i.c.e. agents announced the that they have arrested nearly 500 illegal immigrants in the last week. texas attorney general ken paxton joins us now. tip of the iceberg, ken, a lot more to come you think? >> absolutely. you will see this all over the country. you will see a lot more people arrested over coming months and years. stuart: i.c.e. called this operation safe city, as in contrast obviously to sanctuary city. so this is the ongoing attack on the whole sanctuary city idea, correct? >> yeah. there has been such a narrative put out by the media and others that this is something other than it is. it is about taking criminals and

deporting them. people here who are here illegally, who have either committed crimes or suspected of committing crimes. stuart: did you just get a win on sanctuary cities? tell me about it. >> big win. we got an injunction in a district court where some of our cities filed. we were stopped from implementing a law duly passed by our legislature, signed by our governor. it went to the fifth circuit. 3-0 panel decision they stopped injunction and sanctuary city bill is back in place. stuart: am i right in saying that every person you detain who is an illegal, is entitled to legal representation in a legal hearing before a judge to say, i want it stay and i have every right to stay? they have got legal right to representation, haven't they? >> yeah, absolutely. there is nothing changed about that. all we say to the cities and officials you have to cooperate with the federal government when it deals with illegal

immigration. you're holding a criminal. in addition we're saying that if you're law enforcement official, you can't ask about immigration status. it is simple. dealing with illegal immigration and criminals. s that is it. stuart: right to hearing could hold up everything, couldn't it? if you have a few million people you want to take out of the country, you just don't have the legal resources to have hearings for them all. >> well that is certainly not our issue. that is a federal issue they will have to deal with. i don't know how they resolve timing of all of that not our issue. that is a federal issue. stuart: are you winning the sanctuary city deal? >> absolutely, i have no doubt. this has been already reviewed by the supreme court in an arizona case. i'm very confident that we're going to win on this when we, as we move up the process. stuart: you visited the wall, i think it was yesterday actually. what were you there for? >> i was there two days ago. i was in laredo. actually a river. i was there to find out how we're doing down there. amazing cooperation between

local officials, state officials, u.s. federal officials and the impact that they're having on immigration right now. the numbers are coming down because they're allowed to do their job first time in eight years. it is having amazing impact. it is great to see. stuart: you want to see a wall on the texas-mexico border? >> i want to see something, either more border agents, wall or some type of technology. whether a wall all the way across doesn't matter to me. what matters to me, what works, what is effective. stuart: fair enough. ken paxton, great state of texas. one of these days i have to look at the state. i know him, not that well. mr. paxton. thanks for joining us. >> join me for barbecue. stuart: okay. thank you, ken. see you soon. health and human services secretary tom price publicly apologizing for using taxpayers, taxpayer money for private jet travel. now what is the latest. liz: he will reimburse taxpayers nearly $52,000 for using private

jets instead of commercial planes for both government and personal flights. he is doing this after the president by the way said he want happy with what was going on with the secretary use of these planes. stuart: didn't it cost more than $400,000 for these flights, he rebill using 52. liz: reimbursing 52. inspector of hhs i say i am on tom price's side of this. if you're health and human services secretary, dealing with repeal of obamacare, you have to go to a meeting, i don't know baltimore. ashley: right, right. stuart: are you going to take a trip to the airport, go through security, get your baggage checked, wait to get on board the plane, in the, at the gate, get on the plane and then wait for it to take off, hopefully it is on time, get to the far end, get out of the airport go to your meeting? liz: i hear what you're saying. stuart: isn't there a time some senior government officials say, you have to get a private plane

to get the job done? liz: the question there were personal flights charged to the taxpayer. stuart: all personal? some were going to meetings. >> liz: this is reports we're getting in. stuart: i'm on other side if its with a personal trip charge the taxpayers reimburse us. you're not on my side on this, are you. liz: hearing you're saying the trying to be the reporter here. stuart: this is an opinion show. liz: okay. i will work on it. stuart: all right. packers fans last night, whoa, they cheered usa, usa. they waved flag during the anthem. they waved the flag throughout the game. some players digging their heels. we're on that story. we'll be right back. ♪ just like the people

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♪ ashley: despite early glitches amazon's first nfl live stream game packers and bears went smoothly but we spoke last hour with lance ulanoff, what the glitches mean for future of streaming. roll tape. >> eventually we'll go all to streaming. this whole landscape of television watching is going to change. sports, especially because you

want to watch it live. that is at the forefront. the props that you saw are not uncommon. seems always happens early. almost like, what you call scaling issue. like they're not entirely anticipating the number of people that are going to hit the stream at the very beginning. we saw similar issues with hbo go and mcgregor versus mayweather fight. stuart: right, but they can adjust. >> right. if anyone can adjust, it's amazon. he's green money, for spending today. makes it easy to tell you apart. that, and i am better looking. i heard that. when it's time to get organized for retirement, it's time to get voya.

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stuart: we have a small loss for stocks price this is morning. small loss in the price of oil. we're back to $51 per barrel. how about the price of gold? let's cover all markets. tiny, fractional loss there, we're down 40 cents at is 288 per ounce. now sports. packers fans made it clear they support the flag and they support the united states of america. that was packers-bears game last night. jason whitlock with us this morning the host of "speak for yourself" on fox sports. is. >> son, really clear the fans do not approve of kneeling. they don't particularly approve locking arms. they want to salute the flag and like the anthem and stand you will for it. it was pretty clear where the public stands last night. >> yeah, i think aaron rogers, nfl players, that will have to

come to grips that is their customer base. there is a saying in business, the customer is always right, whether you like it or not. stuart: right. >> and so i think that aaron rogers, the quarterback of the packers, a lot of nfl players want to have this debate in football about president trump, and they have to, their fan base doesn't want to have that debate, not inside of a football stadium. not in a football discussion. they have their views on president trump. i'm sure some of the fans do like it. i'm sure some of the fans don't like it. aaron rogers, packers, all nfl players need to keep presidential thoughts, who you support out of the football arena. if they want the debate outside of the stadium, go at it. stuart: do you think it is time for the nfl to get a grip on this? roger goodell met with eight

players, half the owners. no statement made about the rule which stands for the anthem, you put your hand over your heart. no statement that this rule is there, it will be applied? >> roger goodell has been undermined as a leader for a number of different reasons, and he can't seem to get a grip or get his hands around this situation. we have introduced divisive politics into football. stuart: yep. >> it needs to be gotten out. it is bad for business. that is the bottom line. i don't think the players understand, they're in partnership with the owners. stuart: wait a second if i watch football this sunday afternoon, i would like to, will i see the kneeling controversy and and them all over again? will it keep rolling out there? how and when does it end? >> i don't think it is going to end. i do think it will continue this weekend. i think these players are determined to debate

donald trump inside after of a football stadium. it is bad for business. i wish these guys understand that. they get 49, 50% of nfl revenue. they're in partnership with the owners. they have to do what makes business sense. that does not mean you remove yourself from politics or remove yourself from a movement you believe in. you just execute that part of your life outside of a football stadium, outside of your work environment, like the rest of america. stuart: now, i believe that the nba has a rule, i don't know why you're laughing -- >> because the nba has reputation of this great progressives liberal league, they actually a rule that dictates you stand for the national anthem and respectfully, respect the flag, everything else. and i just don't know why the nfl can't go that route, same as

nba the media keeps telling us, nba, they're a great liberal league that stands for all the right things. no one complains that the nba has a rule mandating that players stand. i don't understand why the nfl can't have the same rule. stuart: is that what you want? you want roger goodell, say get the rule out there, you stand for the anthem period, you want that? >> it is good for business, and it is good for the players. >> yes. >> and so yes, he should do that. he is a businessman, not a social justice warrior. stuart: may i ask your politics? if it's a personal question, don't answer it. >> you can ask. i don't have any politics, you're getting me in trouble, i have to be transparent. i don't vote. stuart: really? >> yeah. i don't vote. i have never voted. i'm a journalist first. so i want to be very objective. so i stayed out of politics. i don't want anybody accusing me of being a democrat, a conservative or republican, a

liberal. i want to be judged as jason whitlock, and as a journalist, i made the decision long ago, don't enter politics. people will label you. people will think you have bias. as journalist, i stayed neutral, completely out of politics. my parents are irate with me about it. everybody i know are irate bit, but i think it is right thing to do as journalist. stuart: i think it is great. you're putting into practice what you're preaching. you don't want politics into sports. you don't bring politics into journalism. >> i don't want to be judged based on who i voted for or what party i supported. i want to be judged as jason whitlock. i am very independent thinker. i don't want to be liberal, conservative. i want to be fair. stuart: you're all right. i think you can come on this program anytime you like. you should extend coverage of soccer. that is all i'm going to say,

whitlock. >> thank you, varney. stuart: thank you very much. president trump speaking in national association of manufacturers. that is coming up in half an hour. he will push tax reform. we'll take you there, you will see the president push tax reform. is this a phone?

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stuart: what is the single thing that you most want from this president this administration? the one thing that is most

important to you? >> well you know what, stuart? we just released our third quarter survey of manufacturers and they said what you would expect. if we get comprehensive tax reform, we're going to invest in new equipment, we're going to hire new workers. that is exactly what america needs right now. stuart: that is a big deal for you guys. you want that tax cut. how do we know, how does america know that you will actually hire more people with the extra money you get rather than raising dividends for your stockholders? >> look, i have the great privilege of working with manufacturers all across the country and i've been talking to small and medium manufacturers who are with us here for this event today, they're all saying the same thing. they're saying if they can get the tax cut done, they can get tax reform done in the right way, they're going to be hiring new workers in their plants and in their facilities. in fact our survey shows 2/3 of manufacturers of all sizes would

do exactly that. stuart: okay. do you have the skilled workers that you require? >> that is a great question, stuart. so, we have 350,000 jobs that are open in manufacturing right now. by the year 2025, that number could go to two million vacancies. so obviously working on that skills gap is a critical component of success in manufacturing. we're doing better as well and pleased with the administration. stuart: are you doing it yourself, apprentice ship programs, that sort of thing or will you rely on importing skilled labor you need? >> we have to do that here at home. manufacturers are stretching up to the challenge. they're working to increase their skills their skills training in their facilities. we have an administration as i started to say, we have an administration focused on it as well, and their apprenticeship program will be beneficial for manufacturing in america.

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stuart: right from the get-go this president has pushed manufacturing jobs, always a big plank in his election campaign and once in the white house he pursued it, jobs jobs jobs, they do it again this hour and you will see it. the president is offering a deal. he will lower taxes on big and small businesses, build it here, he says, pay less tax on your profit. that is an attractive offer and manufacturers have responded. a strong expansion of manufacturing jobs and one more big inducement that is often forgotten. cheap electricity, factories use a lot of juice, keep the cost down and cheaper to make stuff here. the president has made america the dominant energy power, electricity is cheaper than in europe or japan, that is a big advantage, build it here, stay there, you are about to see the

president's pitch to manufacturers, more than just jobs, he will say this, a direct quote from his speech, when we purchase products made in america fashioned by fellow citizens we renew the bond of natural loyalty that link us all together, take that, nfl, the third hour of "varney and company" is about to begin. ♪ >> we cannot afford to wait and see what happens while the tide of events over and beyond us, we must use time and the tool, not the couch, carve out our own destiny. stuart: john f. kennedy, president john f. kennedy on a speech to the national association of manufacturers in 1961, addressing the same group

20 minutes from now. check the big board, where are we? we are down 22 points, the dow stands at 22,357. this is the last trading day of the quarter and markets have gone up for the entire last quarter. huge gains. scott shellady with moody's managing director. despite everything, gridlock, hurricanes, north korea, the stock market has gone straight up. let me ask what happens if we do get a tax cut this year? where does the market go? >> the stock market trades ahead of time so i think a lot of the movement we have had after the election has been in anticipation of stuff like this. i hate to say it but when and if

we do get something like tax cut does that make the market solidify itself or send us another leg higher? that would be new anticipation of something bigger and better. if we get the tax-cut it helps us stay where we are and hang on to the gains. stuart: same question, john. if we get a tax cut this year where does the market go? >> it will go higher. even without a tax-cut we are under utilizing productive resources, low rate of industrial capacity utilization we could get more out of the labor force. there is no reason to conclude that we have hit the ceiling. profits can grow as far as the eye can see. stuart: all our viewers who are stockholders have done very well, they should not be in a selling mood. >> this is not time to get out of the market. stuart: tax reform, the plan as outlined would eliminate deduction for state and local

taxes. that would hit high income earners in high tax states like new york, new jersey, connecticut, illinois. they would really take a hit if the deduction is removed. >> that is correct and that will be a big impediment to tax reform as it currently exists. they will have to do something with state and local income tax deduction if they want to push through congress and get support from republicans, california and new york. stuart: you are in illinois, very high-tech state. if they got rid of that deduction for the taxes you pay, you would pay a lot more. wouldn't you? >> here is the problem. i looked at the financial health of those dates in 2017, california rate 39 out of 50, new york was 43rd, illinois was 49. i have a commonsense idea for those lawmakers from those

states. if you don't want to hurt don't make your taxes as high and run your states better. stuart: do you want that deduction for you? to go away? >> no, i don't want it to go away. i moved to indiana, voted with my feet because the taxes in this state are too high. stuart: i forgot you moved out of state. the guy from illinois, i am sorry. the guy with the cow jacket from indiana. story of the hour the president about to talk tax reforms, national association of manufacturers was what you expect to hear? >> the president will go ahead, if we get the tax reform package through, we have more money left for manufacturers. they will get a break in capital spending.

if you are going to expand production capabilities you have to hire more workers. stuart: that is the big deal for manufacturers, the corporate tax rate down, that is what they want more than anything else. >> the positive side to negatives, we do have room for improvement. that could be the reason the market goes higher and the like. there is a big opportunity to do a lot better but we have bungled and fumbled at every corner entering when republicans had the power so show me the money. stuart: that is what you used to say when you lived in illinois, show me the money. thanks very much for joining us. you will stay with us for the hour until the president's speech. it does tie into the manufacturing theme. fox con, an asian company building a factory in wisconsin. with us, sean duffy, congressman from wisconsin a republican to boot.

i will shake your hand. am i right in saying the state of wisconsin has to pay fox con about $3 billion over a few years? >> certain benchmarks we will give incentives for coming to wisconsin. in the long run this will be great for our state, we will have more jobs, make that money back up in revenue. of companies that come off of the technology fox con brings to the state. emily silicon valley in southeast wisconsin will be great for the state. stuart: you think it will be a good deal, $3 billion for a factory that will employ 10,000 people, that is a deal to you. >> the option companies that supply fox con, the number could be far greater and the information skill set we get in our state explodes growth and

wages for wisconsin. republicans support this deal and democrats are in opposition to these great paying jobs and investment in our state, democrats are in a unique place where they are opposed to jobs and the middle class who is not a winning position. stuart: you think it is appeal deal, you get more out of it in the long run. you are from wisconsin. green bay is in wisconsin, the packers play am not sure if you were watching last night. are you boycotting? >> i'm so upset. the packers asked to link arms on the field. a picture of four guys linking arms hand over their chest, and and they support those who knelt before a flag of the national

anthem. that doesn't play well in wisconsin, proud of our state and those who said i am an american first. stuart: no question which thought it was on. it was on the american side, flags being waved across the state, chance of usa usa, they stood with hand on heart and saluted. you approve of that. >> folks standing up, hands over their chest, drinking a beer and wait for the game to start and they wanted to make a show of force we support our national and and our flag and the nfl should as well. stuart: i think whether they heard the message or not they have not done anything about it so far. >> they were not going to neil, the broncos, patriots and a few other teams. stuart: i am a packers fan.

i approve of their ownership structure. a team owned by the people of green bay. ashley: you can buy shares. stuart: is that true? once you are in you are in. >> the town of green bay, wisconsin that has this amazing football team, lines of people coming into green bay for sunday games, the most unique structure of a football team you have which is special, it is great and the city owns it and it is not going anywhere. stuart: absolutely freezing cold. >> they will give us a standing 10 ° weather but won't get us to respect our flag. stuart: that is the out you. thanks for joining us. now some business headlines.

whole foods said hackers tried to steal data from credit card swiping machines at some in-store tap rooms and restaurants. walmart launching its own private label brand through jet.com, 60 food and household items like cereal could be included, is this walmart's answer to amazon? we are moments from donald trump taking to that lectern or podium, not sure which it is, one viewer tried to correct me the other day. he wants to get manufacturers on board with the tax package. i am sure he will get them on board. alliance for american manufacturing, the president thereof, we will ask what the president has to say to sell you on this plan. we will be right back. ♪ running out of time ♪ you know who likes to be in control? this guy. check it out! self-appendectomy!

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stuart: donald trump speaks in a few minutes, connell mcshane inside the mandarin hotel washington where the president will speak. you have seen the speech, give me the headlines. connell: it is a chance for the president to get the tax debate back on his terms. let's talk business taxes making these companies more competitive lose a couple hiccups, and gary cohn was asked if middle-class people would pay higher taxes that he couldn't guarantee they wouldn't. i heard you talking a few moments ago about deductions on state and local level so today it is back to what the president wants to talk about. the white his sees this as a home game before the national association of manufacturers. in a few minutes the president will say when we grow american

manufacturing we don't only grow our jobs and wages, we grow the american spirit when we purchase products made in america fashioned by our fellow citizens, we do the bonds of natural loyalty that link us together. there are issues to be worked out, deductions and other things but now it is the business side of things. this crowd of manufacturing, leaders, ceos, many told us they would have loved to see a 15% corporate rate. they will live with 20 but nothing higher, that is something to keep in mind. stuart: we will see you shortly. joining us is scott paul, president of the alliance for american manufacturing, welcome to the program. >> good to be with you. stuart: what is the single most important thing for you from the president's speech? the most you want to hear? >> i there are two things the president needs to get across. one is how does this impact middle america to the point about gary cohn and the missteps

in his briefing, that is quickly important. the second piece of this and i do think he is talking to the right audience about this, how tax reform will make our companies more globally competitive and therefore going to create additional, good middle-class jobs that have a great spillover impact, he has to make that case. stuart: the president wants to drop the tax rate to 15%. the plan at the moment is to go down to 20%. if it stays at 20% and comes down to the 20% figure is that low enough to bring back much of the $2 trillion companies have overseas that doesn't come back because of high taxes, is 20% low enough? >> great question and that will impact different sectors in different ways depending on other deductions they are giving up. on that i am hopeful we can come

up with a plan that can do that. i want to quickly add the last time we tried repatriation in the bush administration it wasn't the job creator, it brought some revenue back but it was largely used to buy back stock, payback corporate loans and certainly didn't have an impact on manufacturing jobs and piling up additional public debt in the course of this, i approach has to be different this time. we have to make sure we are incentivizing these companies to make good choices in the united states. stuart: would you put strings on it? dropped the rate to 20% only if you bring the money back and create more jobs? >> there is the one time repatriation and you need to put some strings on it. doing stock buybacks and loan payoffs may benefit a narrow band but won't broadly help the

economy. if we can pour it into bonds that will fund infrastructure or invest in capital expenditures and investing in the skills of our workers, that is the type of money coming back that has broad economic benefits and is going to help the corporation add value as well. we need to learn from that as we look ahead. stuart: we will hear from the president momentarily, thanks for joining us, appreciate it. we are told donald trump is on his way to the mandarin hotel. the podium is inside the mandarin hotel in washington dc, the president is on his way, he will give his speech to the national association of manufacturers. you will stay right there, you will see this. stay there please. the president after this. ♪ think again.

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stuart: watching two things, the president is about to arrive at the mandarin hotel in washington. he will address the national association of manufacturers.

you will see that speech when he begins. the nasa composite index, another all-time high, up 35 points, 6489. i think tech stocks are doing quite well. update you on the situation in puerto rico. look at that. those are containers stuck at the port in san juan that contain supplies, much-needed supplies, they can't get them out because infrastructure has collapsed across the island, they can't get enough truck drivers to bring their trucks to the dock and get them out of the country, that is a real problem. however america has appointed a 3-star general to take charge of the recovery effort. all government agencies report to him. that is governor andrew cuomo, governor of new york, large number of people who live in new york state are puerto rican. the governor of new york is in

puerto rico. the ship loaded with supplies, the empire state. facebook is sending its thrown team over there. facebook have thrown team trying to organize a system whereby drones relay the internet to people on the ground. the problem as you said earlier you can't recharge your phone. ashley: they are doing something. stuart: individual stocks we are watching, what do we start with? apple marginally higher, $.26 higher, reports the iphone 10 may not be on the shelves for christmas. apple is not saying that, other people are saying that. amazon jumping into nfl streaming did quite well last night with the packers game, the stock is up to $9.63 roku the

stock of the week, up 15%, it was up 68% yesterday. in two days the stock has doubled from its offering price. we are awaiting donald trump arriving in mandarin shortly and we will take you there for that speech talking about his tax-cut plan and address the manufacturers. his message will be well-received by manufacturers was one thing they want is a lower corporate tax rate so they have more money after taxes for investment in new equipment and new hired staff. that is the biggest win for the manufacturers. >> exactly right. stuart: he will get it. >> you bet they will. if you increase the after-tax return you will get more risk-taking and in the process

more jobs. liz: media and democrat saying why are you giving tax cuts to big business? it is not right, it is wrong. we collapsed our manufacturing jobs through government policies and watch this, the cbo says workers bear as much as 70% of the corporate income tax burden, it is passed on to workers. that message has failed, cbo saying that, the congressional budget office says that, that message has failed to resonate throughout the media and the democrat party. what helps job creation is getting that burden down on the backs of businesses and small businesses. stuart: charles hurt is joining us from washington. this audience, the manufacturers are going to laugh up what the president has to say, they will be vigorous supporters. >> absolutely. not only is this an issue that matters to them immensely but also something people have a lot more faith in the president that he can deliver on this where the healthcare debacle is a sort point.

they have a lot more confidence that he will be able to negotiate a deal on this. stuart: you are an economist, am i right in saying manufacturing jobs, the number thereof, has gone up a lot this calendar year since the president was inaugurated? >> better than expected. it is important we see more jobs in that sector to boost average earnings. stuart: charlie kirk is with us, favorite up and coming guy who wants to be the president of the united states by 2044, look, do young people coming out of high school have the skill sets required for manufacturing jobs the president wants to create? >> many of them do not but we have seen a rise in stem education, you saw donald trump emphasizes in the last two weeks, something we talk a lot

about is not everyone needs to go to a four your college to succeed, we need more plumbers, electricians, trade people who go to these manufacturing jobs and that is a following out of america, there has been this narrative you have to go to coastal elite colleges, borrow $200,000, study stuff that doesn't matter to find jobs that don't exist. stuart: i will go further on this. it seems to me i was born and raised in england and people who did blue-collar jobs, manufacturing jobs were looked down on, they were the working class and the elites looked down on them. didn't make fun of them but they looked down on them. i have seen the same thing happen in the united states. the elites looked down on dirty jobs would get your hands dirty we don't want our sons and daughters to do that. my right? >> exactly right and that is a bipartisan disdain.

we see it in all the details going back to nafta and before these trade deals, people who get overlooked in these deals, they do the work, get their hands dirty. the most important thing about what donald trump tapped into his those workers and to hear him talk about getting to know those workers, that is who he relates to. he relates to guys who look like iron, and mortar, bricklayers, electricians, he understands those people and has such respect for them. maybe they didn't study shakespeare but that doesn't mean they are not the smartest people you will ever meet and he talks that way and that is why people in both parties mocked and ridiculed donald trump, he talks like those guys. stuart: i want americans to be the best welders and

electricians and pipefitters. >> the democrat party did connect with the working class and dirty job worker. during the reagan administration when reagan did tax-cut, liberal ted kennedy signing on for those tax cuts and cosponsoring the reagan tax cuts, dick gephardt, bill bradley, they understood what got america moving again, reagan won in a landslide, we are dealing with walter mondale democrats who hate tax cuts. >> we have these minorities, both democratic and what do they do for these people to help them improve their standing next to nothing. stuart: digressing a little bit, i do apologize, i am looking at the podium and i see two prompter's.

we do hope donald trump departs from the prompter because the other night in indiana, it was supposed to be a barnstorming speech for tax reform. ashley: it wasn't to the general public. it was very pointed to those people he wanted to reach. that is why he stayed on prompter. wasn't the campaign-type event. they wanted to keep him on message. stuart: i am a little embarrassed because i'm one of those people who consistently said please, mister president, tighten your message, don't say something you are not supposed to say and here i am saying you can't deliver a barn burning speech using a teleprompter. >> i have a weakness for this guy when he goes off script. it is amazing how often he hits the bull's-eye when he goes off

script, he could create a controversy, didn't create one when he put a spotlight on the controversy and distracted the administration's attention from other things but he was exactly right and hit the nail on the head and he was wondering into something that ticked him off. stuart: you have a soft spot. >> that unfiltered honesty, desperately needed in american politics. stuart: has america got used to him? >> whether they want to or not they are being forced to get used to him. stuart: charlie kirk, you have political ambitions, do you make speeches using a teleprompter or are you capable of speaking off the cuff with raw emotion? >> i never use it on prompter. i love when donald trump speaks from the heart, that is the guy we got behind and started movement you see having

tremendous effect and i disagree with the host, couple segments earlier said these tax cuts, we have to make sure they don't just and if it the wealthy but even if the money is used for stock buybacks or corporate restructuring all that money is better spent by private individuals and government bureaucrats, doesn't matter, all tax cuts are good cuts, there is no dad tax-cut good tax-cut, they are all good so it is important to remember the flow of capital, repatriation is nothing but a positive thing, to create wealth in this country. stuart: one of the criticisms from the democrats of the president's tax-cut package is a just benefits the rich, just the 1%. >> it is nonsense. there is a lot of small businesses that are going to get tax relief if this law is passed. small business owners are not rich by any stretch of the imagination.

stuart: it is factually incorrect because if you do clawback the big deduction you get in high tax states for state and local taxes, you cloth that back, wealthy people may the end of the day end up paying more. that is not out of the question. >> that is why you have fierce opposition to a limitation of state and local income tax deduction in states like new york, california and illinois. they will be up in arms over this even though certain types of government spending they don't want to pay for like everybody else. stuart: they have given us a warning here about the imminent arrival, he is in the mandarin hotel where the podium is, they told everyone to take their seats, time to put our voice to work so take your seats. j simmons, chair of the national association of manufacturers

will introduce the president, not sure how long that will be, normally not very long, you get straight on with it, maybe he will speak for a minute or so, not sure we will take or not but we will take the president of the united states when he delivers that speech. you come officials walking in. let's listen for a second. >> the national association of manufacturers, 12 million men and women who make things in america, this is manufacturing's moment, manufacturers in america have never been as enthusiastic, as optimistic about their future as they are this year. i know we are all excited about our special guests as well as the momentum. stuart: we have to come out of this, that nasty buzz in the background on the audio. we don't once to inflict that on you or have a buzz in the background when the president is speaking. charles hurts, back to you on this tax plan. the sticking point in the house

of representatives is this getting rid of the deduction for state and local income taxes which would mean 33 house republicans from high tax states, their constituents would not benefit much from tax reform and pay more. i suspect the end of the deduction of the bargaining chip that will be withdrawn from the plan. >> you are probably right about that. was put in as a bargaining chip which is too bad, it is a terrible thing for low tax states, to subsidize high tax states, in these places, it looks like everything in the tax code is terrible incentive. i do think this is one of the problems with republicans,

republicans are conservative, don't want to do anything overly dramatic. they want to take baby steps with things, donald trump and the rest of us would like to see truly dramatic overhaul of the tax code. stuart: should tax cuts be paid for by tax increases or revenue increases elsewhere? >> we have room to tolerate an increase in the budget deficit. when reagan was president, 83-86 the budget deficit was 5% of gdp, they are staying with this program, maybe 4%, 4.2%, we can shoulder that without interest rates going through the roof. stuart: those 21/$2 trillion of american profits made by american corporations overseas, roughly 21/$2 trillion, maybe more. if we drop the corporate tax rate to 20%, is that low enough

to bring a big chunk? >> if it is globally competitive a lot of companies bring that back home and invest in facilities at home. stuart: you don't want strings attached. >> no strings, the other guest said go ahead and require companies for investment instead of stock buybacks. stuart: i want a handicap. do you think we will get a tax-cut deal signed, sealed, delivered by the end of this year? >> they have no choice. stuart: you are absolute on this. >> may not be the best thing in the world but they will do something. they will get something signed, sealed, delivered by the end of the year. this, the republican party is completely finished if they can't do this one simple thing. obamacare, the fact they couldn't repeal obamacare is

astounding and i still think there is a shot they might come up with something but tax or from, tax cuts, you can't even do that? stuart: charlie kirk, weigh in on this, as a young up and coming republican, is your party finished if you don't get tax cuts? >> i agree completely, the fact they didn't get obamacare done shows a promised for 7 years and deliver nothing when the chips are down, one thing i wish the tax plan included was an alleviation of the working tax on my generation, and charlie, who is this and why is he stealing my money and in all seriousness that would be a huge thing. stuart: here is the president of the united states introduced by j timmons, introductions over, shaking hands, listen in. [hail to the chief] ♪ [applause]

[applause] >> there are times like this. thank you very much, great to be here at the national association

of manufacturers and i want to thank j timmons and david far along with all the members of congress that are here today and they are working hard. i want to begin by sending our thoughts and prayers to the people of puerto rico who have been struck by storms of historic and catastrophic severity. people have never seen anything like this. we have undertaken a massive federal mobilization to assist puerto rico, including presidents of over 10,000 federal personnel, including 5000 us military and national guard personnel led by a very very strong and talented 3-star general. all appropriate departments of our government from homeland security to defense are engaged fully in the disaster, and the

response and recovery effort, probably has never been seen for something like this. this is an island surrounded by water, big water, ocean water. we are closely coordinated with territorial and local governments which are totally and unfortunately unable to handle this catastrophic crisis on their own, totally unable to. the police and truck drivers are substantially gone, they are taking care of their families, largely unable to get involved, largely unable to help. therefore we are forced to bring in truck drivers, security and many other personnel by the thousands and bringing them onto the island as we speak.

we have never seen a situation like this. the electrical grid and other infrastructure, we are already in very very poor shape. they were at their life's end prior to the hurricanes and now virtually everything has been wiped out and we will have to really start all over again. we are literally starting from scratch. ultimately the government of puerto rico will have to work with us to determine how this massive rebuilding effort will end up being one of the biggest ever, will be funded and organized and what we will do with the tremendous amount of existing debt already on the island. we will not rest until the

people of puerto rico are safe. these are great people. we want them to be safe and sound and secure and we will be there every day until that happens. likewise we are working closely with the virgin islands on the disaster recovery and that effort is going very very well. both governors i have to tell you, in puerto rico and the virgin islands, have been extremely good. they are working so hard. but there is nothing left. it has been wiped out. the houses are largely flattened. the roads are washed away. there is no electricity. the plants are gone. they are gone. it is not like let's send a crew in to fix them. we have to build new electric. sewage systems wiped out. there has never been anything

like this. there remains a lot of work to do and we will work with the folks we are working with right now. they are trying very very hard but nobody has ever seen anything like it. we are here today at the national association of manufacturers to discuss our vision for america's economic revival. and to celebrate the people whose vision and products stock ourselves, fill our homes and enrich our lives. i want to express my special gratitude to the incredible workers on stage. congratulations. [applause] >> they are the ones, and millions out there. they are not as good as you but they are very good.

the millions out there whose dedication and drive makes this country run. it is a great honor to be here with the men and women whose creations power our communities and protect our nation. we are all here today for the same reason. we believe in that beautiful beautiful phrase that hasn't been used so much over the last three decades. made in the usa. [applause] >> it is a phrase that fills our hearts with pride. and they embody the skill, grit and drive of the american worker. the single best tribute to our workers can be found in the unmatched quality and craftsmanship of the amazing

products they bring, from the blueprint to the storefront. made in the usa is a global symbol of unrivaled excellence. my administration is looking to lift burdens on our companies so you can thrive, compete and grow and at the very center of the plan is a giant, beautiful, massive, the biggest ever in our country, tax cut. [applause] >> for decades the policy of washington dc on the subject of manufacturing is a policy best summarized in one word, surrender, they surrendered. under my administration the era of economic surrender is over

and the rebirth of american industry is beginning. america is winning again and america is being respected again and you see that happening all over, you see the 5 plans that were announced recently, auto plants, so many people coming into this country, that want to be back in, other countries bringing their companies and sending their companies in. they want to be back and that is great for our worker. on every front in every way on every policy we are guided by the same economic all, to keep jobs in america, to bring jobs to america, to create real prosperity for america, the country that we love. that is why we have lifted the restrictions on american energy, ending the war on call, approving the keystone and

dakota access pipelines and i tell you something, i did that immediately first couple days, 48,000 jobs, everybody is happy. and reversing the epa intrusion into your business and into your lives. instead we are returning the epa to its core mission, clean air and crystal clean water. that is what we want. we want clean air, clean water. we are fighting to create fair and reciprocal trade for american companies. the word reciprocal is so important, lifting barriers to our exports, cracking down on countries that sheet of which there are many and ensuring a level playing field for our great american workers, our

great american companies because when our workers have a level playing field, no one, absolutely no one can beat us. [applause] >> we have taken historic action to protect our manufacturing and defense industrial base. my administration has ordered a first-ever view of manufacturing technology and supply chains we need to protect our country. we cannot have national security without economic security. to further unleash american enterprise we have taken unprecedented steps to remove job killing regulations that sap energy, creativity and dynamism from our country, we are cutting regulations at a pace that has never even been thought of

before, not even thought of. this is a groundbreaking campaign that involves every department and agency across our government. we are requiring every federal manager to systematically review and remove regulations that destroy your jobs, hamstring your companies and undermine your ability to compete. we need some regulations, but we don't need 35 regulations to take care of one item. we don't need to go through nine different agencies to get something taken off. we want beautiful, fast, efficient regulation that works. [applause] >> thank you. already we are seeing the results of an economic policy that puts america first.

unemployment is at a 16 year low. wages are rising, the stock market is soaring to record levels. the s&p hit a record high just this morning as i was coming over. gdp growth hit over 3% last quarter, was just adjusted yesterday and is now at 3.1%. a number that hasn't been seen in a very very long time and a number that is way ahead of schedule. [applause] >> i believe we are doing better this month but unfortunately having the hurricanes hitting texas and florida and louisiana and obviously other locations especially where we are right now with the kind of money we are spending on puerto rico and the virgin islands it is going to be a little bit of a hit but we are doing extremely well even

this quarter despite the hurricanes. manufacturing confidence is at an all-time high. america is finally back on the right track. our country and our economy cannot take off like they should unless we transform america's outdated, complex and extremely burdensome tax code. it is a burden on our country. [applause] >> we have a once in a generation opportunity to pass tax reform that is progrowth, pro-jobs, pro-worker, profamily, and pro-american. our current tax code punishes companies for doing business in the united states and encourages them to leave and that is what

has happened for so many years and one of the reasons, probably the prime reason companies are leaving our country and firing all those people. they are not bringing the jobs with them, they are giving other countries those jobs, firing all those great people. that is stopping. it has already started to stop nine months ago. that is stopping and it is stopping right now. we need a tax system that encourages companies to stay in america, grow in america and higher in america. [applause] >> for several months my administration has been working closely with congress to develop a framework for tax reform that will deliver exactly that. more jobs, higher pay, lower taxes for middle income families and 4 american businesses of all

sizes and these are businesses that create jobs. we unveil an incredible framework on wednesday, in indiana, a great state. i would like to share with you four core principles of our plan. first, we will cut taxes for every day hard-working americans and we are going to cut them substantially. under this framework the first $12,000 for a single individual and the first $24,000 for a married couple will be absolutely tax-free, no tax. we are nearly doubling the amount of income that is taxed at a rate of 0. above that amount income will be taxed at three rates, 12%, 25%, and 35%. we will also substantially

increase the child tax credit to save working families even more money because we know the most important investment our country can make is in our children. our framework also provides relief to those who care for an older loved one through a $500 tax credit, something everybody has been wanting so badly for so long. by a laminating the tax breaks and special interest loopholes that primarily benefit the wealthy, our framework ensures the benefits of tax reform go to the middle class, not the highest earners. that is why we have given congress the flexibility to add an additional top rate on the highest income earners to provide even more tax relief for every day working people. second, our framework will makes

the tax code more simple, fair and easy to understand. american families and businesses waste billions and billions of dollars, tens of billions of dollars on excruciating paperwork and compliance every single year and it never ends. under our framework the vast majority of families will be able to file their taxes on a single sheet of paper. we are also repealing the unfair and complicated alternative minimum tax. the amt caused many people to calculate their taxes two different ways and pay the higher of the two amounts. we are closing loopholes, reducing burdens and replacing confusion with total clarity. as part of the simplification we are also going to protect millions of family businesses by ending the crushing, horrible

and unfair estate tax also known as the death tax. [applause] >> that means for those of you with small and family-owned businesses your family won't have to sell the business at a firesale just to pay a very high and unfair tax. your families can continue to run your business is with love and dedication and remembrance of you. we will protect our manufacturers and make taxes simple, easy and fair for all americans and it is about time. [applause]

>> we will cut taxes on american businesses to restore our competitive edge and create more jobs and higher more wages for the was passed 30 years ago in 1986 with a large bipartisan majority. that sounds so nice. wouldn't that be nice? come on. look it, we have, we have so many right here. let's go, raise your hands, fellows if you're -- the 1986 tax bill was substantially reduced. our business tax rate to make america globally competitive went through the roof. the plan worked. the jobs and industry boomed. other countries saw our success, an copied our playbook. our foreign competitors adopted tax rates much lower and much more competitive than our own. in fact, when it comes to business tax, we are now dead last among developed nations. we pay