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 the highest tax of any

nation in the world. our rate is the least competitive rate there is. our business tax rate is 60% higher than our average economic competitor. think of that. and then you say, how do you compete? well, in many cases you don't. our companies leave. they go to other countries. it's a massive tax on every product made in america, giving countries like germany, canada, japan, south korea, china, and mexico, not to mention so many others, a massive head start over american industry. it is time to go from dead last to pretty much the front of the pack. [applause] pretty much.

we won't be the lowest but we'll be getting pretty close. under your framework, we will dramatically cut the business tax rate so that american companies and workers can beat our foreign competitors. [applause] we will cut the business tax rate from 35% all the way down to 20% below our average competition by far, and this is a revolutionary change and the biggest winners will be everyday working families as jobs start pouring into our country. [applause] when companies leave our shores, it is american workers who will get hurt. they get fired. when companies stay in america, and move to america, it is our

wonderful workers who reap the benefits and the rewards. and for the majority of american manufacturers, that file taxes, as sole proprietors as s-corporations or partnerships, we will cap your tax rate at a maximum rate, unlike present of 25%. that is your maximum rate. [applause] this will be the lowest, top, marginal income tax rate for small and medium-sized businesses for more than 80 years. the lowest in 80 years. [applause] and it will be rocket fuel for our economy. to further help our companies to compete, for the next five years, our framework will allow you to fully write off the cost

of new equipment in the year you buy it. think of that one. so you don't take it over many years. you take it immediately when you buy it. that will be something that people have never seen before, and it will be great. it will be truly great. that means more production, more investment, and far more jobs. if we wan to make more products and that say, "made in america," that's what we want. made in the usa or made in america, then we have to reduce taxes on the businesses that produce in america and with your help that is exactly what we are going to do. fourth and finally, our framework, and you have to remember you see what's happening with companies and

offshore, encourages american companies to bring back trillions of dollars in wealth parked overseas. our current tax code actually punishes companies for keeping their headquarters in america and discourages them from bringing back the profits they earn overseas. we are going to reverse that. right now, we have at least $3 trillion overseas, and i must tell you, i have been following this for six years, and, republicans, and democrats have always said, we want that money to come back. so they all agree and they still never got it done. we'll bring everybody together and we're going to get that done. [applause]

we will eliminate penalty on future earnings and bringing back to the united states in full. we will impose a one-time low tax on money currently parked overseas, so it can be brought back home to america where it belongs. for too long our tax code has incentivized companies to leave our country in search of lower tax rates. my administration rejects the offshoring model and we have embraced a new model. it is called, the american model. we want companies to hire and grow in america. to raise wages for american workers. and to help rebuild american cities and towns. when we grow american manufacturing, we not only grow our jobs and wages but we also grow america's spirit. when we purchase products made in america, fashioned by our

fellow citizens, we renew the bonds of national loyalty, that link us all together as one. there is a great patriotism that lives inside of the men and women who leave their hearts on the factory floors, who pour their hopes in the works of iron and steel and who turn dreams into reality. with their own two hands. when they huddle, in the break room, at the rest stop, or at the end of a long and very tiring shift, they take pride in knowing that the products they work and the products they make, are not just building business. they're building families and communities and most of all, they are building this nation that we all love so much. [applause]

we want every american to know the dignity of work, the pride, the pride, the beautiful pride. getting a paycheck, the satisfaction of being told that was a job well done. we want every parent to be able to care for their children and we want every child to know a home filled with love and a community filled with hope. that is the america we see when we look at our american flag, that hangs in all of our factories. sails our oceans and waves over our cities, towns and fields. we love our american flag. [applause]

the soul of a country is found in the people who make it a home. and we owe it to our citizens to provide them with a future of opportunity where they can earn a living with dignity and purpose and pride. we can build this future together, as one team, one people, and one great american family. this can be remembered as the moment we took control of our destiny and chose a future of american patriotism, boss operate and pride -- prosperity and pride. with your help and our voice, we will bring back our jobs, we will bring back our wealth, and for every citizen across this land, we will bring back our great american dream. thank you. god bless you, and god bless america. thank you very much, everybody. thank you. [applause] neil: all right, you have been

listening to the president of the united states addressing the national association of manufacturers, a group that is very, very interested in what the president is cooking up here with the tax plan they argue would be very beneficial to them. they are one of those rare industries as a group generally pays closed to the advertised rate, in this case 35% of the top prevailing corporate rate. they don't have the flexibility to rely as a lot of technology companies do, pay much lower rate. this is not universal but more general statement here, that manufacturers, would disproportionately tend to benefit from this new lower rate if it comes to pass. president indicating taking from 35 to 28% wouldn't put us at top of the heap but certainly near the front of the pack. interestingly i noticed president talked about this higher rate, may be beyond three established income rates that have already been spelled out as you know, 12, 25 and 35%.

the president spent a good deal of time appeared to me going off prompter to explain the fact that the rich will not get away with paying their fair share as the term goes. there could be a 4th higher rate. some liken to 37, 39%. who would ensnare and what level would begin the ensnaring. the top rate where it stand where the 39.6% rate kicks in, 418,000 and some change but that could change. we don't know of income levels for this, they are not really established. indiana republican senator todd young here to react for all of this. senator, thank you for your patience through that. do you get the sense that there are votes in the senate are there to get this, to get this through? >> well, i can tell you all we have right now is a framework. there is a whole lot of enthusiasm i know, among republicans and a lot of receptiveity from the few democrats i targeted for

conversations on this topic. i think we have more than a fighting chance. i think we'll get this done, get tax reform done for the american people because look, people in indiana, people across this country understand they need more money in their pocket. we need to create more jobs. we need to grow more businesses, tax code that is simple, one they understand. i think this framework puts forth that sort of a proposal. neil: no accident that the president took your colleague, senator joe donnelly, democrat from your fine state with him to this big event earlier in indiana this week to make a pitch for cuts. has senator donnelly what he heard so far is something he would approve? >> i will let senator donnelly characterize the tax plan how he likes. each of us like to do that for ourselves but i think most, most people in indiana are going to be happy with this package. you mentioned how important it would be for the manufacturing sector. our effective rate is higher

than the effective rate found in other sectors. indiana is the most manufacturing intensive state in the entire country. so the manufacturing jobs that are dependent on lowering taxes, making us more competitive against other countries and those manufacturing workers, who worked so hard and want to lead lives of dignity and purpose and prosperity, depend on this tax cut. so, i would hope that those in manufacturing intensive states would give the framework a really strong look. neil: finally, sir, i'm getting a sense that the president, this is just my interpretation, i could be very wrong, often am, by the way, where he seemed to go off script, the president a little bit, to explain that there might be an additional income rate, higher than the 35%. i don't know, who that would involve, and what level they would be involved, what salary left, but are you open to that, so that this doesn't look as, i

know how you see this played in the media as giveaway to the rich? >> you know, i hadn't heard that proposal until the president just mentioned that might be a possibility. personally i'm very happy with the current framework. i think it is going to result in a reduced tax burden on all americans t will especially benefit of those of humbler means, frankly. doubling of the standard deduction. we'll see millions of americans wiped off the tax rolls entirely. that of course will mean a major simplification complying with the code, for those millions of americans as well. so, between the simplicity, the dynamism that will be infused into this economy and equity, i think associated with this tax reform proposal there's a whole lot to like about it. neil: senator todd young, thank you. very good seeing you. >> thank you. neil: let's get a read from the house right now. arizona republican congressman trent phrase. congressman thanks for joining

us. >> thanks, neil. neil: i'm told that the house is much easier to get this through than the senate, is that your sense? >> there is no doubt about, arcane, or more likely insane rules of the senate make almost everything impossible. that is little different with the tax code. when you look at this tax code, neil, we talk about reality of death and taxes, this tax code taxes us to death and taxes us again when we die. we've got three, i mean we got enormous challenge here with the people's dissatisfaction with the tax code, and i'm convinced that there is more hope getting this done than we've had in a long time and maybe the senate rules won't be so difficult with the particular subject that we're dealing with. neil: do you ever think, i know you're looking at it from the house's perspective as you should, you're a big deal there but in the senate is concerned it won't be such an easy vote. your colleague in the senate, john mccain in your fine state, would be an unreliable vote, he might not vote for this

just like he hasn't voted for number of health care repeal efforts on part of republicans. that the president needs to get democratic votes to compensate for that and other republican senators, maybe like susan collins of maine or lisa murkowski of alaska, who might similarly bolt. are you worried about that? >> i'm concerned about it. i think senator mccain will end up voting for this. he recognizes -- neil: has he told you that? >> i will not characterize what he has said but just my opinion he will end up voting for it. i hope he will but the bottom line is, that the people of this country are just absolutely tired of this tax code, and i would be more concerned about this effort to try to make state and local taxes not deductible. i think that is vital part of this plan. we may have some pushback from some members in those states that have heavy taxation but i hope they will just understand the way they put pressure on own state governments to reduce

taxes, increase economic expansion of their state vote for this reform the president laid out in the speech he gave amazing case. this is the most pro-taxpayer president we've had in my lifetime. no one has business acumen he has. neil: your colleague, peter king, long island, new york, where taxes are quitefy, he fears for his constituents it will be a wash, even allowing for higher standard deduction and like and he doesn't think it is fair his residents end up getting what he called the wash, everyone else in the country getting a tax cut. what do you say to him? >> that overlooks the expansion that is going to occur in the economy. i will make a prediction, within two years, if this tax code, this new plan goes into place, that we will see greater government revenue and we will see an incredible expansion of this economy which will absolutely benefit everyone in the country. neil: do you think these tax cuts that they are voted on this year should be retroactive to

the beginning of the year? >> absolutely about i don't know that will occur. that mate be negotiating point at some, some stage of the process. but, this is a historic opportunity and a country is what it produces many times. a government is what it spends. this is our opportunity to transform the nation. i hope we succeed. neil: trent franks, thank you, sir. >> thank you, sir. neil: did anybody see this? football game last night, green bay packers, chicago bears? they did that thing they promised they would, not only did teams lock arms but asked those in the stands to lock arms. very few in the stands did. that didn't get much coverage. why do you think thousands in the stands say don't rope us into this? why do you think a number of advertisers are noticing the same thing, getting quite antsy. we connect, and you decide. ♪

♪ 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

neil: we knew it would be interesting. i imagine the ratings first couple minutes of last thursday night night's football game, green bay packers, chicago bears in wisconsin, will be rather revealing not only reaction to the team ultimately standing an locking arms for the national anthem, but the audience not following along. very few of those in the seats when standing in the seats opted to lock arms. the anthem protest hitting bottom line as companies pull ads in the face of all of this. hillary vaughn in los angeles with much more. hillary, what are they doing? reporter: hey, neil, turns out protesting america's national anthem comes with a cost. viewers are down as a whole for live sports but hitting new lows for the nfl. according to nielsen, viewership is down 11% compared to where it was last year, with two million fewer people tuning in. but it is not just people at home changing the channel. ticket sales are down too.

online ticket retailer pick tick, says they have seen a 17% drop in ticket sales for week three. that is 17% bigger drop than last season. blowback doesn't stop there. restaurants in states like louisiana, texas, south carolina and new york refusing to show the big game. alan jones announcing all his companies will not run any ads in all 29 states they're located in. >> i'm a patriot first, and this is about the flag. this is about the country. it is not about anything racial. we stand together for our country, black and white. we stand for the flag. reporter: customer service rep for directv says they're getting sans selllations -- cancellations for sunday ticket and they're offering customers a

refund but nfl channel red zone has been hit with cancellations. neil: incredible. hillary vaughn, thank you very much. nfl commissioner roger goodell is meeting with owners and players to discuss protest going forward. eric schaefer on that. this has goodell in a bit of a pickle i'm sure, eric. you want to keep your players in line and don't could nottantly yapped about by the president of the united states and viewer boycotts. where do you think this is going? >> this is interesting, neil, where it will go, i think they will pull way back. neil: who will pull back? >> i think the nfl. i think the nfl is going to have to. the different teams, they overextend themselves to go after the president defined themselves. they defined themselves on behalf of the players. and they alienated this

significant swath of viewers that look at the nfl's move as a complete shot at them, a disrespect to the principles and heart of what they believe and certainly, patriotism. so they're voting. they will vote in subscribership with directv and others. they will vote with their pocketbook. they're making their voice very loud. certainly advertisers, they have to be aware of this now. advertisers are much like anyone else, in partisan areas like this, it puts them in harm's way. so they're going to bail. all which is bad for the nfl. it was the worst branding move of modern history, in terms of sports. really bad choice. and goodell owns it. he made the decision to attack the president, and it was a bad choice. neil: team owners did as well, but that being said, we're

getting a news alert here. want to pass this along, get your thoughts, new orleans quarterback drew brees says his team will neil and stand for the national anthem in the game against miami, i believe that was in london. that is what jerry jones and cowboys did. i wonder if that is the template going forward. stand in unison. neil in unison. stand for the national anthem itself. what do you think? could that give them cover, face-saving cover for both sides? >> i don't know about the kneeling, because it is, it is tied to what has happened. i think you could see a standing, where everyone comes together and they join together. that is -- neil: in this case, i'm sorry, where new orleans is going to kneel presumably before the national anthem, like the cowboys, this is coming from drew brees, his idea, stand for the national anthem, that template still has problems,

still has issues? because we saw big issue, you know in the thursday night game was that the audience didn't bo go along. the green bay packers hope was, the players hope was, aaron rogers wanted everyone to lock arms in the stands and most opted not to. what do you make of that? >> that's right and i agree. i think that would not be the right choice. i think fans will look at that as a continuation of some level of anti-patriotism. talk about conservative fans, those view the what the nfl was advocating directly or indirectly, complete disrespect of principles what they hold dear and those of the military and those who have served this country to make great, it is a bad move. look the nfl -- neil: is it going to extend to companies that advertise on these games, even before and after these games? i know directv offered money back for those who had their

sunday ticket football games and the rest but so far no other big advertiser has felt the need to do so, or either cut back or remove ads from these broadcasts. are we getting close to that if this continues or what's your sense? >> i think so. neil: really? >> i think you will see more of it. yeah i do. of course, they don't want, no one want as hit to their revenues and nfl will see it, these advertisers, if they continue, and especially if some of the groups that are targeting these advertisers on behalf of what is going on, continue those actions, then these advertisers are going to make a move. and that is part of what is happening here. you're seeing groups, special groups that are targeting these advertisers because they're against what the advertisers are supportive of in terms of nfl. they want to make their statement known. therefore the advertisers are getting even more focus. so that's a problem for them. neil: all right. pretty smart on this stuff, you

know that, eric? thank you very, very much. i appreciate it. >> my pleasure, neil. good to be with you. neil: eric shiver, patriarch equity ceo. we will get a gauge on this weekend, depending on fan reaction, fans at home what they will do or not do. this idea of republicans have to stay in lockstep on this tax cut thing. they can barely afford to lose a couple. unless they reach across the aisle to get democrats to cushion the blow. there is history of that. ronald reagan was able to do it. he was able to score a lot of democratic votes. john kennedy sadly after his death with his tax-cut package that rally ad good deal of republican votes. george bush when he had hits tax cuts in early 2001. at this point in 2001, at this point in 1981, those tax cuts were law. we're running a little bit behind schedule here.

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>> this will be the lowest top marginal income tax rate for small and medium-sized businesses in more than 80 years. the lowest in 80 years. [applause] it will be rocket fuel for our economy. neil: all right, well the president's hope on that tax cut, all the others tucked into what could be generationally, one of the biggest tax cuts we've seen since ronald reagan. it will boost the economy. will lead to sharply higher growth than we've been used to last decade or so, maybe 3, 4, 5%. there was a period in 1984 for example, when ronald reagan saw the gdp soar better than 7%. a guy right there in middle of all that, phil gramm, former texas senator. good to have you.

thanks for coming. >> thank you, neil. neil: how likely does this tax cut package look to you? >> i think that it will pass. on i think final up-or-down vote, it will pass both houses of congress. there are a lot of democrats that will try to vote with dis dissident republicans to tear it apart on the way to the final vote. i think if the leadership can organize the votes in such a way we get up-or-down vote, my guess it will pass for two reasons. one, it is what the economy needs and we have proof in the reagan tax cuts that it works and then secondly it is exactly what trump and republicans promised. politicians get in trouble, when they promise to do things and

they go back on it. nobody can say they're surprised by this proposal. i know some democrats are saying that, but it is politics. this is exactly what they campaigned on. i think you're in much stronger position when you did what you said you would do. neil: senator, you talk about the fact that they might thrash over issues, both parties, in this case, a number of democrats go along and vote for this. what are the issues they think they will thrash over? do you think it will be on the rich thing, maybe a finding a fourth rate which the rich will pay? we don't know what level they will pay but, that that will get more democratic votes? as it stands now, that is difficult because democrats are complaining about that? >> well, you got to understand, that, high income people in america pay a higher share of the tax burden than high income people in france pay.

we already have among the most progressive tax systems in the world. you know -- neil: that is a very good point. that's a very good point. they could explain it, even if you hate the rich here, they're getting screw ad lot more than they are -- >> anywhere else in the world. neil: that is very good point. i'm sorry, go ahead. >> listen, neil, when is the last time somebody poorer than you hired you? i had a lot of jobs in my life but i have never been hired by anybody poorer than me. they talk this to death -- neil: part of president's thinking, this is where i think he went off script today, i could be wrong, to address the fourth rate, the rate beyond 30 five%, maybe that is a way to get democratic votes. do you think it is? does need to do that? is he playing, what do you think? >> no, i don't think so. first of all i think we may very well get a few democrat votes on final passage but i don't think you will get it by raising

people's taxes. i don't think americans buy this envy business. in terms of even the death tax, people like warren buffett are not going to pay the death tax. people like you are going to pay the death tax. you work a lifetime. you build up a business. you build up a an estate, people don't believe it is fair when you die to come in and take 40% of all you accumulate in your life. they don't believe it. and, we're hurting the economy because we got a lot of older people who would like to retire, would like to sell their businesses, but they can't afford to do it. young people would like to buy them, but they can't get them. we need that energy unleashed. so we need to stop thinking about it. neil: that can play into the game, the class game, that both side would try to take advantage of, let me ask you a little bit how ronald reagan, how you at the time managed to get so many democratic votes.

i was looking at the tax act in 1981, the first reagan tax cut, took top rate from 70% to 50%. he got 37 democrats in the senate to go along with that, 48 in the house. five years later with the retax reform act in '86, the one everybody talks about, 176 in the house and 33 in the senate. how the heck did he do that? >> well, i think two reasons. one, the world was different then. things weren't so polarized then. there weren't really two competing visions. i think that was part of it. i think secondly reagan was very effective in defining what he was trying to do and why. reagan was good about not getting defensive on these issues that tend be divisive. like the idea that you can't cut

somebody's taxes because they're paying most of the taxes in the country. or the idea that because obama raised taxes on high income individuals, that they have got to stay there forever. i don't think we signed on to the program of trying to make obama's tax increases perpetual. i want jobs. i want the economy to grow. neil: i'm sorry, senator. your thoughts. you were the man behind gramm-rudman where they had budget constraints built in. everybody had to adhere to them. we lost that backbone here, we're flying by the seat of our pants and a lot of people on both sideses, whether we dispense worrying about deficits or debt? do you think people argue about tax cuts, say you get a boom, growth in the economy they will more than pay for themselves. where are you on this? >> let me give you a couple examples. first of all, where the hell

were those people when obama doubled the outstanding debt of the country? they were silent. number two, when reagan cut taxes, by the time he left office, even though we broke the back of inflation and the tax code, we had 19% more real income because the economy was growing. obama raised taxes on the rich, he did. it was supposed to collect $650 billion over 10 years. we lost $3.2 trillion because of underperforming growth. i think we've got a proven history here, that we can make this work by giving people incentives to work, save an invest. i'm confident that if we can pass this tax reform, we're going to get 3% plus growth again, and even the democrats agree that if the economy could

grow at 3% more again, we would collect $2.2 trillion over next 10 years. so i think that this is required to get america going again. and we can't deal with the deficit unless we can have a vibrant economy. and i think this is ticket to getting it. and i think in the end this is going to be successful t will have low points and i think you're going to get a lot of mischief voting on various amendments to try to tear it apart, but i think in the end, especially if the president can continue to do what he did this morning, get out an explain it to people, and we don't need to be defensive about any part of it. neil: yeah. i -- >> if somebody makes money saving america, i want america saved and it will be saved at a profit. neil: each side, if you play on defense, you're not on offense, right? >> that's right. exactly right. neil: phil gramm, thank you very

much. good seeing you again. >> thank you, neil. neil: we're wrapping up the latest quarter for investors. we're looking at eight winning quarters in a row. that is the longest winning streak we've seen in 20 years an usually when the first three quarters of a year are up as they seem to be here the last one, the last one is almost always up. 81.8% of the time. i looked that number up this morning. and i said, i'm going to wow them with a number. 81.8%. there you go. basic cable, free. you're welcome, america. ♪ oh, that's really attached. that's why i rent from national. where i get the control to choose any car in the aisle i want, not some car they choose for me. which makes me one smooth operator.

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neil: there has been a little bit of reporting on puerto rico that the white house is not nearly doing enough to help puerto ricans. that seems to be a given. i thought i would go direct to the source, puerto rico's governor to ask him. are you satisfied with the help you're getting? >> we do need more aid, but the president and administration has done everything that they can, that we've asked them to do. and, we have gotten those results. fact of the matter is, puerto rico is an island. a lot of things need to be flown in or brought in boats and, that

takes some time. neil: all right. ricardo rossello, puerto rico's governor, that doesn't jibe with san juan's mayor saying not nearly enough are being done and people are dying. it is not a good news story. gerri willis latest how the white house helping relief efforts with a presidential visit next tuesday. >> that's right, neil, florida governor rick scott is meeting with donald trump today to talk about recovery efforts in the wakes of the devastation of hurricane maria. recovery efforts there plagued by a lack of communication. trump administration officials say with most power lines and cell towers down, the lack of electricity an communication has made coordinating difficult. lieutenant-general jeff buchanan will coordinate more than 7,000 troops and then thousand governor workers trying to rebuild and restore power to the island and distribute clean water and wood. now the president took to twitter friday morning to talk about relief efforts saying in

part, quote, puerto rico has been destroyed by two hurricanes. big decisions will have to be made as to the cost of its rebuilding. i have to tell you, neil, not as everybody is upbeat. residents of island say help is scarce and disorganized. one big problem, getting supplies from the ports to people. clearing roads is another issue. president trump addressing latest efforts earlier today. >> we have undertaken a massive federal mobilization to assist puerto rico, including the presence of over 10,000 federal personnel. including 5000 u.s. military and national guard personnel led by a very, very strong and talented three-star general. >> to help support foals with medical needs the navy's hospital ship, uss comfort leaves from virginia for a five-day journey to puerto rico.

president trump is scheduled to visit puerto rico. he will be there tuesday. neil. neil: gerri, thank you very, very, very. in this country we're looking at last day of trading for the month and quarter, first three quarters of the year. the dow is up 8 days in a row. that is longest streak we've seen in 20 years. could the streak stop? we have lisa herzog and deirdre bolton. they are impressive numbers, deirdre, particularly a streak like this, august and september up almost all the time, the fourth quarter is up, what are folks telling you? >> i went back to post-world war ii, 80% of the time in the post-world war ii era, if you have a gain in august and september, 80% of the time you have a strong fourth quarter. august is usually weaker month for whatever reason. statistically this indicates

we're going up. you mentioned a huge big wild card out there which is this tax plan. is it going to be passed before end of calendar year? will it be passed in its current form? that is a big wild card. does the fed raise rates or not in december? that is another big wild card. neil: the argument here even though tax cuts are expected and hoped for, they really would demonstrably add to value in this market. i heard some estimates say you could get another 7 1/2%, 8% surge in earnings. that would represent a similar surge in the s&p 500, already expected to be running at 10% clip. they get a little too incredible these numbers. should i have pause or what? >> i think definitely if there was to be tax reform happening and a quick rate it would definitely help but to deirdre's point, i look at the consumer sentiment numbers while we had a little bit of a decrease in august, according to the

michigan consumer sentiment poll it says we're on track to have increase of 2.6% over the next quarter of the so despite a hurricane, despite the current state of the country, despite the partisan fighting, i think that would really, that would definitely help, however we're already spending. people certainly feel good about the economy. neil: so larry, let's flip it around. not that they don't happen, but they don't happen this year what about that scenario? >> you know, i just don't think it matters. look at all- neil: here is the thing, larry, we're doing a segment on it. i'm kidding. go ahead. >> okay. well i think the business cycle trumps everything else. the market is almost pricing in, that corporate rates may be down to 27% by the first quarter next year. perhaps something with expatriation of accumulated earnings overseas, but the fact remains that, the business cycle

doesn't need a nudge from the executive branch or anybody else. it just has a clock of its own. so, i almost think that it is, almost a non-factor as it were, unless there is some egg big surprise they're able to get corporate rates down to 20%, which i think is like next to nil. neil: that is interesting. >> i respectfully disagree in the sense i think if the tax reform goes through, ceo's feel good, they're confident, willing to hire more workers. neil: do you think that -- in times in the past they tend to buy back stock. not that there is anything wrong with that but it doesn't have the effects some hoped for? >> that can happen. i actually think what is holding back a lot of corporate america right now is confidence in the future. my two cents if this tax plan goes through before year-end, i'm not really sure about that, then i think the markets do go higher for sure in the fourth quarter. neil: there is also the issue of

history here and a market run a little long in the tooth without so much of a correction, even slight adjustment, and you know, given, that is a worry. i know a number of big wall street houses are out today talking about how this momentum continues not only in the fourth quarter, but i think byron wien, market strategist says well into 2019. where are you on this. >> we'll historically see market corrections. neil: but we don't see it with this one. >> market history over many he can decades, you're talking about a short-term correction, even long term over last couple years you've always seen upward trajectory with the exception we saw from 2008 into 2009. we recovered from that. when you're talking about markets, you will see the upward trajectory, coupled with the way consumers spending, that will increase spending and perpetuate

this market good feeling. but, again, if we do see the tax reform, that will only put it over the edge and make it even better. neil: larry a lot of people are noticing that foreign markets as an aggregate, doing better than u.s. markets this year because that is the place to put money because they have not had a great run-up over the years our market has, that is where you want to place your bets not here. what do you think? >> i think the bond market in general, especially corporates overseas, i think a lot of dislocations. i would almost stay away. i just read something that in italy their double b bonds are yielding higher than u.s. treasurys. i mean it is all about financial repression. all about everybody grasping for yield. i think it's a powderkeg. i don't think it will explode tomorrow but something to be careful about. neil: we'll all be careful and add it up after this.

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. neil: all right. welcome back, everybody. i wanted to leave you with the pregnant pause, that's how i roll, america, welcome, i'm neil cavuto. you are watching "coast-to-coast" on fox business. the president of the united states making second pitch for big tax reform, big tax cuts and emphasized the group of manufacturers today in washington, d.c. it would chiefly benefit them, and they need it. they tend to pay at the highest rate, close to 35%, that is what the average tends to be for most manufacturers.

connell mcshane inside the mandarin oriental hotel when the speech went down and got the reaction from the manufacturers who were and actually still are there, connell? reporter: a few of them are having lunch across the hall, as a matter of fact. there were more than 200 in this hotel ballroom within the last hour, hearing the president speak, neil, it's a receptive audience, the president knew, that we heard him open with the made in the usa line. the beautiful phrase speaking to the manufacturing executives. he says and core argument today was to encourage them to make more of their products here in the united states. use the tax code to do so by giving them what they need. >> my administration is working every day to lift the burdens on our companies and on our workers, so that you can thrive, compete and grow. and at the very center of that

plan is a giant, beautiful, massive, the biggest ever in our country tax cut. reporter: giant, massive, beautiful, biggest never our country. interesting in speaking to the executives that were here before the speech. a number of them did say they would love to see the corporate rate you were referring to come down 15%. of course the president would have as well. the 20% compromise talked about is something they say they can live with but would have loved it see 15. generally very receptive audience today. the other thing the speech gave the white house a chance to do is get the debate back to where they want it when the state and local deduction story became a bigger story, than the white house wanted it to be with objections from high-tax state republican representatives, and even on that, the white house has been conscious today in trying to reframe the way people think about that particular part of the debate. here's the budget director making his argument earlier

this morning to maria. >> if you and i make the exact same amount of money, live in the exact same value of house, we have the same kind of car, our kids go to the same kind of schools, shouldn't we pay the same federal income tax? the answer is yes. the real world is no. if i live in a high-tax state, you live in a low-tax state, you pay more towards the federal government. it's not fair. it's not right. reporter: it's not fair, they say. neil, there definitely is work to do on that front. as an example, i had peter king on the radio this morning, the republican congressman from new york and said the white house asked him to keep an open mind getting rid of the state and local deductions but he cannot see himself voting for a bill that does that. that gets rid of the deductions, we'll see, back to you. neil: i caught the interview, and raised something i hadn't thought of before, his constituents don't get a fair deal here, they get a wash, best-case scenario, they're

learning that all their fellow citizens across the country are getting the big old tax cut. i never heard it framed that way, but he's right about that in that case, you know? >> and it's those people are middle-class people, or his argument. if you live in the suburbs of new york whether it's new jersey or long island and you make six figures which used to be talked about as being a lot of money. that isn't a lot of money, and a middle class worker, maybe in other parts of the country, other members of congress made similar arguments, listen, everybody else is getting this break, except you guys, that is tough. that has to be worked out. neil: the majority of his constituents take the itemized deductions, in other words, the taxes are so high that it behooves them with the higher general deduction, let's say it goes up to 24 grand per couple, it makes better sense to itemize. you are right, it's going to be a battle royale. connell, thank you very, very

much. to the battle royale, charlie gasparino, former trump campaign co-chair joe borelli and deneen borelli, what do you make of that, there was fighting and flogging to do? phil gramm was saying republicans shouldn't be in the position of offering the rich a tax cut or any of this other stuff, that they've got to be on offense. what do you think? >> listen, i think we do need to lower taxes. the best way we possibly can, put more money in the hands of the consumers. they would spend more. when you look at high-tax states, california, new york, new jersey, i, for one, i moved from new york to california -- connecticut two years ago because of the high taxes. taxes are a bit lower in connecticut. neil: not much. >> they're crazy there as well. we were able to cut our property taxes in half. that tells you something. the politicians, local state, they continue to raise taxes.

people can deduct that burden, but there's no fight to reduce taxes. so if you put the burden on the politicians to do something about lowering taxes, i mean, that is what we really need to do i think for our country, for the good of the economy. neil: i wonder how many, and charlie and i were getting into, this joe. 60 republican congressman from such districts where this comes up, deneen mentioned new jersey, who are going to have a tough time voting for something like that, unless the math can be proven that take the general raise deduction means they get a bigger tax cut than would normally be a case. >> it would be a tough sell for new york city, nassau county and connecticut and new jersey, peter king making the case for his county, one of the highest tax counties in the country, if not the highest tax county. deneen and i share a mind, the

same politicians blow offating about removing the deduction are keeping in place the fact these are the highest tax state and localities in the country. it's a two-fold -- neil: that's a very good point. >> it is a good point. if they want to be genuine, they would reduce taxes and increase spending. it's not necessarily a tax problem, it's a spending problem. neil: states like this one and others say they get far more to washington than give back. >> and that's empirically true, by every model says new york taxpayers give a lot to the federal government, much more than oklahoma. i will say this, it was music to my ears to hear donald trump go out there and forcefully talk about tax cuts in ways he didn't do with health care. he clearly gets this issue and the notion of giving more of people's money back to them. they spend more, economy grows. he gets that and a free market

guys, that's music to my ears. here's the one thing i have to say, when ronald reagan did it, and you and i talked about this, this is why i can't believe they're freaking out that the opposition to the state and local tax deduction. when ronald reagan did tax cuts, when he was giving it to congress, okay, congress, here's my plan, put it into law. 95% of it was thought out and hammered out and agreed to. there were few things that weren't. we should point out that this is just the opposite. 5% of this is kind of agreed to, and 95% of this stuff needs to be worked out. you're going to have battles over the state and local tax deduction, battles over carried interest deduction. private equities also ready to go war over the deduction on interest expense. i'm telling you -- neil: it's not going to be easy. >> it's crazy. neil: deneen, let me ask you about that. what i think the president needs is predecessors who had

sweeping tax cuts, bipartisan support. doesn't have to be off the chart, bipartisan support, a few senators will do it for you, assume you lose a couple of your own. do you think that's important, that he reach out, joe donnelly of indiana comes up as someone who could be winnable or joe manchin of west virginia, but needs those to cushion the blow of potentially losing a mccain or murkowski in alaska or collins in maine, that islam a given. what do you think? >> here's the thing with that, democrats do not want president trump's agenda to be successful because that means they're going to lose more and more seats across the country, and they'll likely lose voter support as well. neil: those who are in dangerous states of re-elections are purple states. >> sure. >> they're concerned about getting re-elected. neil: will that seal the deal? >> possibly could seal the

deal. >> states that are not high-tax states and states that the majority of the 70% of americans who claimed the standard deduction are living. in those people who claimed the standard deduction off the bat get a doubling of their biggest tax reduction off the charts. it's very politically difficult to try to go after the middle class when you voted against a tax cut that they can just see plain english and paper on hopefully a post card as the trump administration says it will be on. >> how many democrats fit that. neil: those three. >> manchin. >> heitkamp. >> if we get three -- >> there might be others. phil gramm alluded to others. i want to get your thoughts on this. people go back to the reagan experience and all, that keep in mind, the economy was in much, much rougher shape. >> and he was much more popular. >> the top rate to 70 to 50%, but the one thing that was interesting about it is he defanged the boon to the rich

argument by constantly framing it as it's your money, i'm not going to delineate who gets to keep money and who doesn't. everyone gets a tax cut, and wasn't this hatred of the rich that seems to permeate the discussion. >> particularly on the left. neil: right. and wondering how that factors into this? >> i agree the sales part is a big thing. can donald trump pull a ronald reagan and sell this thing. the other thing is ronald reagan was incredibly popular president. donald trump is incredibly unpopular president. our viewers are going nuts because they voted for him. the majority of the country didn't. neil: remember ronald reagan, the assassination attempt garnered support and rallied the country he would have gotten the tax cuts, but not by the margins he did. >> right, what is the last thing we remember donald trump doing, which was last week getting embroiled in take a

knee, you see what i'm saying? these are different people. neil: you think in the end he'll get it? >> logic says no only because they gave it -- as i said before, they gave it -- neil: doesn't know. >> no. neil: deneen? >> i don't think so. neil: really? >> i'm optimistic, they cannot come to the plate and strike out again. the gop and congress needs to deliver 100%. >> i hope you're right. >> i hope i'm right, too [ laughter ] . neil: charlie mentioned the whole nfl thing, nfl ticket sales are down, ratings are down, and now it's up to the nfl to turn this thing around. are you game? after this. [phone ring]

hello. hi, it's anne from edward jones. i'm glad i caught you. well i'm just leaving the office so for once i've got plenty of time. what's going on? so those financial regulations being talked about? they could affect your accounts, so let's get together and talk, and make sure everything's clear. thanks. yeah. that would be great. we've grown to over $900 billion in assets under care... by being proactive, not reactive. it's how edward jones makes sense of investing.

. neil: all right, getting word right now that u.s. navy hospital ship is preparing to be deployed to puerto rico to bring in more medical care.

the ship presently stationed in norfolk, it will be making its way to puerto rico soon. others are part of a healing armada where america will do its best to help puerto ricans battered by maria and difficulty coming back. two different raced. the mayor of san juan saying people are dying, and the governor of puerto rico telling us on the phone yesterday on fox news, the president's doing all he can. they need more help, but they're pleased with the help they're getting. pick your poison as they say. new orleans saints quarterback drew brees saying the team will indeed kneel before the national anthem and lock arms and stand for the national anthem. if that rings a bell, it should, what jerry jones and the dallas cowboys did last week, will be that the middle ground, the sweet spot to make the controversy go away unless it's not that costly. fox news headline sports reporter jarrod max, is that a

middle ground? >> a lot of nfl teams, jerry jones and the cowboys monday night, now the saints, i think they want to be switzerland. neil: who? >> by and large the majority do. the nfl owners certainly want to be switzerland because they weren't into the anthem protests until what happened last week. where i think they were almost essentially challenged by the president telling them how to do their business and they responded as they did. but i think people want to be switzerland. who wants to fight about this? it's such a sensitive topic, people don't have their hands grasped around what the central figure is, in these protests, and i think now we're getting to a point where people are saying, okay, you know what, in the protest, you have our attention, you obviously have america's attention, now it's time to deliver the message. what's the message? how i can help? how can you help? how can every american help to bridge the gap. neil: so the players and the owners deal with this. what i found weird what happened in green bay, the

packers-bears game, aaron rodgers trying drag the fans into it in the stands and lock arm in unison with us. if i'm having my beer and nachos, it's a pain in the neck to put them down to lock arms with you, but secondly, don't drag me into this. >> just like people don't like religion preached on them, your relationship with the man upstairs, that's yours, and i think the same goes for patriotism. don't tell me how to be rah-rah for my country. i feel -- neil: or not rah-rah. >> or not rah-rah. it's the same thing at school. >> i think rodgers was trying to pin them and lock arms and very few took him up on the order. they stood in most cases as you and i for the national anthem, but the idea just by doing that is expressing sympathy for their point of view. >> aaron rodgers one of the

most popular athletes in sports, certainly in green bay. you have a game he throws four interceptions, you will have fans who disagreed with what he did and start taking shots at him. winning solves all problems finishing the games are excitein exciteing --. neil: what's the view on the games, are they going to kneel, stand, lock arms, not lock arms, put the nachos down and lock arms in the stands? i don't know, and then i move on. >> there are a lot of narratives that can be told about ratings. numbers were down 13% from cbs' first thursday broadcast last year. you know what's different this time? 149 countries were showing the nfl broadcast via amazon prime. a little different story. neil: would that make up in the numbers that you get in a sfwlaft. >> don't know that, you know what else we can't account for, what percentage of fans are consuming the games on our phones? who does not have the time

anymore to watch games? neil: all things being equal, you think that would mean enough difference to justify these numbers? >> meaning the -- neil: the rating? >> maybe, maybe not. i don't know if it's alarming. neil: you're an expert in all of this. i talk to people who anecdotally tell me, this ticks me off. i love football, love watching football, but i don't have time for this. >> and it becomes the last straw. if you are tired for seeing for years a lot of conceited athletes, look at me, watch what i can do. neil: like television anchors for god's sake. >> not even close. huge drop-off in attendant figures in the nfl this year. neil: that startled me. the seats are sold out for a lot of the teams. >> 15 of the 32 teams raised ticket prices. the chargers are are playing in a soccer stadium, they can't sell out the stadium.

they raised ticket prices to $192 a game. neil: they are unpatriotic and thieves. >> it's like the colin kaepernick situation, yes, kaepernick should be on a team if we go with his talent alone. he's good enough to be in the nfl. if he were a much better quarterback, maybe he's not as unattractive risk. fans have had it. i don't want to sit in three hours of traffic and pay $100 to park which is what it is to get attitude. neil: no one has recommended locking arms in the stands, at least. i haven't heard any follow-up requests nar. >> it didn't work all that well last night in green bay. neil: thank you very much. >> great to see you, neil. neil: same here. tech stocks among the best performers, forget this quarter, this year. how does the final quarter look for them? we'll head into the final quarter next week. we'll have a read on it, on

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. >> welcome back to cavuto "coast-to-coast." take a look at technology, the best performing sector of the third quarter as we wrap it up on the last trading day of september. names such as apple. up 6% in the latest quarter. facebook up 13%, and amazon relatively flat. netflix, 21%, google, 4.5%. these names have been soaring. technology has led the way. we're also looking at this year apple with the iphone is front and center of late. facebook's two billion monthly active users, instagram doing so well. amazon and netflix, netflix up 46%, those we talk about streaming, amazon with whole foods. so many pieces surrounding technology.

google with so many home products and smart screens, we talked about this morning. big picture, neil, as we've seen technology lead the way in the third quarter. the nasdaq at an all-time high. i have to say people who believe this market is moving to the upside are believing in tech, and buying the dips, neil, we saw it in the summer and saw it on the quality names. neil? neil: absolutely, certainly with apple as you pointed out. thank you very much, nicole. so tech is finishing a strong quarter, what's been a strong year. to market watchers adam, jeff and rich. rich, do you think the tech momentum continues? we've had bumps along the way certainly over the last couple of weeks, what do you think? >> well, you know, apple might be a canary in a coalmine, it was down 10 or 11%. i don't know what it's doing today, 10 or 11% in the month of september. i think if the apple x slated to come out in november is a bomb like the iphone 8 has been a bomb, that could torpedo

apple and could have a ripple effect. i don't think it's going to happen. neil: adam, do you think it's going to happen? >> no. and rich, remember, they're call together apple x not the apple x. neil: they're confusing it by putting an x and not calling it a ten, it's not the commandments. >> i don't disagree. i think they probably will do well with it, the only part i disagree with, rich, if that would drag everybody else down. if they don't do well, then somebody else like samsung or google or any number of players will. i don't see anything stopping the tech market. roku, not a particulary good company, having the giant ipo bump, that's what's speaking to the market for me. neil: jeff, when you look at market, i've talked to a lot of people who say, to maintain this momentum in august and september up almost all the

time, the fourth quarter, all sorts of statistical analyses that the fourth quarter is going to be up. i'll ask you, is the fourth quarter going to be up? >> yeah, i think the fourth quarter is up, according to the traders almanac, when the market goes up in the worst month of the year, which is september, leads to pylon gains. technology has been my top three picks, tech, tech and tech as a sector for years, they're not all that expensive. blended growth rate was 18.2%, i believe. neil: wow. how much do the tax cut debate and debates going forward, rich, influence you on this? i had a trader earlier on who said not at all. this market certainty built on expectation, one way or the other. and someone else said yes, it is. if that thing falls apart, so too this rally, this market. what do you say? >> well, the big tech companies

like apple and google are very effective in the way they reduce their federal income tax, they're paying rates on the order of 10, 12, 15% versus the s&p average of 26%. so if you got a corporate rate cut to 20%, you would have no material impact on big tech. neil: adam, let me ask you about the tax rates that go down and get to 20% of that, so the president's goal is and some of the other rates that benefit smaller companies, i assume tech companies, 25%. it's going to be a lot lower than where it is now. would you see people, then, readjusting their numbers to reflect that, and that this market doesn't reflect that. it's going to change the multiple on this entire market so that it's not nearly as expensive or deemed nearly as expensive and that means the bull rampage is on. what do you think? >> i think that scenario is

totally possible. i think part of that is baked in, there's some expectation that the congress will have some success with this, so i think that's possible. if you want to talk big tech, the bigger threat is the government clamping down on companies like facebook and amazon and google for being too big and powerful. you saw facebook take a dip on the russian stuff. >> right. >> i don't see that as a big threat. i think they glide right past it but that's a risk. neil: jeff, the various sectors, you were saying you like technology and you have for quite some time, i know that. do you ever say, i got to spread the wealth out a little here? >> i like basically most of the macrosectors, except the low volatility defensive sectors, which a lot of people that haven't believed the rally and put money to work, it piled into those to where they have historically the richest valuations they've ever had. neil: what would that include that looks prohibitive to you?

>> that would be utilities, consumer staples, the procter & gambles of the world. i would also add, neil, for ever drop in the corporate tax rate it adds $1.31 to s&p earnings. neil: i thought it was $1.30. i'll take the $1.31. you guys are really smart. rich, i'm wondering if interest rates move up because of the improving economy. maybe goosed more with the lower taxes, if and when they come into play. does that offset the advantage of set lower taxes? >> you know, the great mystery is why interest rates haven't moved higher with all the monetary stimulus and with an improving economy. something new seems to be at work, i wonder if it's tech itself, if there's a moore's law effect that is putting a blanket on inflation. you know the federal reserve has to think not only about -- not only about asset values and

the value of the dollar but think about employment. they're worried if they raise interest rates, they may reverse the gains in employment. neil: do you think, adam, i'll end with you on this, the federal reserve is going to go through with the december rate hike and maybe pick up the pace in 2018? >> they seem confused. so i know they've said they would, and everyone expects them to, but it seems like they aren't sure what they're going to do, neither am i, neil. >> i built a career on it. jeff, what do you think? >> i think janet yellen is going to be true to her word, i think she's going to raise rates at a glacieral race, i don't think it impacts the secular bull market. neil: thank you, very much. the hope here that the republicans have and donald trump speaking to manufacturers, we've got to get this done this year, we've got to see the bang for the buck like pronto. he didn't say the bang for the buck like pronto but said just move fast. after this.

. neil: would you vote for this congressman, what you've seen of it. i know it's a broad blueprint more than anything else. would you vote for it as it is now? >> absolutely not. look, let's take a step back and look at this whole things are since the recession ended, about 85% of income growth went to the top 1%, okay? so this is just another supply side economic plan. neil: all right, count the democratic ohio congressman tim ryan on a maybe on this. he's not really a fan of this, if republicans are looking for a yes vote from him, they're going to have to keep looking. to maryland democratic congressman john delaney who joins us right now. already running for president of the united states on the democratic ticket. congressman, very good to have you. thank you for taking the time. >> nice to be with you here, neil. neil: what do you think of what you've seen of the tax measure? >> you know, unfortunately it's not really a tax reform proposal, it's just a tax cut

proposal, and that's probably the most disappointing thing to my mind which is the lack of details, a lot of discussion on the various tax reductions or tax cuts on the proposal but no discussion at all about how we'll pay for that or any of the reforms that a lot of us have looked for in comprehensive tax reform. i'm also very disappointed there is no infrastructure included in this, i think you can't do infrastructure unless you do it as part of tax reform, almost definitionally. i'm very disappointed about that. i'm disappointed that there isn't something like the earned income tax credit which is something both parties agree is incredibly successful kind of tax credit program for working class americans, encourages them -- neil: did they add that in, congressman, would you be more enticed in that's been kicked around? >> i think the things democrats are looking for in tax reform are things like earned income tax credit. we'd like to see the corporate rate come down as well, but paid for by eliminating

deductions. we would like to fix the international system, the worst part of our tax code right now but we've worked and republicans worked with me. 40 democrats and 40 republicans who want to fix the international tax system and pair it with infrastructure investment. i think some of the features need to be in the proposal for democrats to really give it any serious consideration. neil: i know, you were one of the early ones to eye the white house in 2020. people want to know more about you. i suspect it's going to be a crowded field. bigger, better known names expected to be in there. a fellow named jimmy carter did that. how do you differentiate yourself around a party that rallies around big government, elizabeth warren, joe biden, bernie sanders who want a single-payer system or a lot more infrastructure spending, a lot more spending, a party in the past not too concerned about piling up debt is now.

how do you adjust that and differentiate yourself from that crowd? >> i differentiate myself from anyone looking at running by being the candidate who actual leapts to bring the country together. i think the problem with politics right now, neil, is we spend all of our time talking about the things we don't agree on, and spend mow time really talking about the things that we agree on, and i think that's one of the big problems with politics these days. the other thing that's not happening is no one is focused on the future, and the world is changing very rapidly. you know this from coverage of what's happening in business. technology, automation, machine learning, changing society, work, job, how we use our resources, demographics. no discussion of that in politics. and last several decades, significant changes in the economy that hurt a very large percentage of our country and haven't done anything to make a difference against those problems. so the problem with government is we don't do anything, and the reason we don't do anything, we don't focus on the things we agree on. we focus on the things we don't

agree on. i want to be the candidate that focuses on things that the american people broadly agree on. neil: interesting because the rap that democrats get in the investment community, congressman, is they don't like the investment community and they don't really like rich people, and hence, any time tax cuts come up, they always argue their boons for the rich, even though you go back and forth and argue the rich pay a lot of the taxes, we play the same old game. and i'm wondering how as president you would change that? >> well, listen, i think it comes down once again to kind of focusing on the facts. you know i come from the private sector. my parents didn't go to college, my dad was a construction worker but because of a good education i was able to be an entrepreneur. in 1996 i was the youngest ceo on the new york stock exchange at the time. so i'm a huge believer in the power of the private markets.

it's a miraculous innovation machine that fundamentally changed our economy and the role of the world for good. take care of those that are left behind. if you believe in capitalism which i do, you have to understand that capitalism can be destructive. and that's where government comes in to make sure that we're setting the right goals for the free market economy and also doing things specifically to take care of those who have been left behind. neil: do you think the government has done too much in that regard? >> no. neil: so when the president comes up with a plan to cut corporate taxes and regulations, do you think he's going too far? >> listen, i think simplifying the tax code makes sense, i think we have a tremendous amount of duplicative regulations, streamlining regulations makes sense, it makes sense to invest in communities and people that have been left behind. i don't think the central challenge in the economy right now when you look forward is a tax issue.

i think the central challenge in the economy right now is a human capital issue. we have 7 million jobs in this country that are unfilled. right? 7 million help wanted signs in this country and not filled because the companies can't find people with the skills. that's the skills gap issue that everyone likes to talk about. we should all agree that this is a huge problem, right? and we ought to be focusing on those things as much as we're focusing on tax reform. i'm all for tax reform, simplifying the tax code, i'm all for make our tax code more competitive. we have a huge issue with international tax which creates bad incentives for companies to keep money overseas. we should be doing it in a bipartisan way, fiscally responsible, and focus on the things we agree on. but we also have to focus on the fact that we have this big human capital issue in this country right now, and right now, 60% of the kids under 18 in this country are in counties where there's no evidence of upward mobility.

and that gets to my mind what the country is built on, the notion of the american dream. so unless we're doing things in these communities to get jobs, bring capital and lift these people up, we're going to continue to have structural issues and as change occurs which it's going to accelerate, these problems get worse. so the discussion needs to broader than tax reform to my mind. neil: i'll give you this, congressman, unlike many of your colleagues, you take on any and all incomers, you come on fox, that says a lot about you. we'll hear more from you. john delaney, the democrat running for president of the united states. watch this guy. smart cookie. some lessons from ronald reagan, lessons from john f. kennedy, republican and a democrat, how you get tax cuts through? after this. so let me get this straight. you're a rabbit? im vern, the orange money retirement rabbit, from voya. riiight. and that means...? i'm the money you save for retirement.

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. neil: ask you a little bit about how ronald reagan, how you at the time managed to get so many democratic votes. >> reagan was very effective in defining what he was trying to do and why. and reagan was good about not getting defensive on these issues that tend to be divisive like the idea that you can't cut somebody's taxes because

they're paying most of the taxes in the country. neil: did you hear that? not getting too defensive on issues, like in ronald reagan's case, cutting taxes for the wealthy. he cut taxes for everybody but never got into the trap. that's an important part of getting bipartisan support on anything, including tax cuts, and doesn't presidential historian extraordinaire doug wead know it. it worked for john kennedy, doug, certainly worked for ronald reagan. so we learned something about never being on defense with these things, right? >> yeah, we do. and i want to tell you something, neil, watching tv this week and i think people have misread this. this is not as easy as it looks. john f. kennedy's tax cut, that was historic, that was unusual. he was opposed by republicans and democrats. the republicans, the conservatives at that time said you can't lower taxes unless you lower spending. it was all about this mounting

deficit and this mounting debt. so they were opposed to it. and the democrats led by harry bird in the house and by al gore, sr., in the senate, totally opposed. they heard word from the kennedy team, it's called starve the beast. the kennedy team said if we lower taxes, they will have to lower spending, and the kennedys believed that if you lower the corporate tax, you're going to increase business investment. kennedy was opposed, but the only way it really passed is he was assassinated and it became highly controversial to oppose anything that kennedy did. neil: ultimately they got 21 republican votes in the senate, 108 in the house. but tragically, you are right, a lot of that was because of his assassination, months prior. but there was an effort on the part of ronald reagan to duplicate that.

ironically. he too was shot and in the effort to get the first wave of taxes, obviously he survived that assassination attempt but he did work the sympathy and the support he got after that to push the tax cuts. i think he would have gotten through it regardless but pitched it in a different way at the time everyone that would benefit, and that everyone's vote would rise. but he didn't get nasty about it, and he never got sucked into the media gotcha game of class warfare. how did he pull that off? >> that was a different time, too. that too, i want to urge, was a lot harder than it looks. for example, he did, as you pointed out, get the quick tax cut, 1981, but the tax reform act took place in 1986, after he had been re-elected president of the united states. carrying every state in the union except for minnesota and

almost got minnesota it. ain't easy. i once asked reg ban his legacy and i thought he was going to talk to me about the end of the cold war. he said his proudest moment was the passing of that tax reform act where he reduced the 15 brackets to 3 like trump is trying to do. it's more difficult than it looks. i hope it works. but don't hold your breath. neil: talk about challenging your own base. i can remember "wall street journal" editorials, the one i was reading when i was two years old, i was so young. saying mr. president you're going too far much like the mainstream media said of jfk, you're going too far. any parallels to president trump and how he makes this pitch today? talking to manufacturers, of course, who would benefit from a much lower rate, they tend to pay at the top rate. what does he have to do? >> yeah, well the point is, it absolutely works, and reagan talks about that in his own memoir. he created 18 million jobs.

so it works. and when reagan came to office in 1981, the top bracket in income, personal income tax was paying 71 or 73% in taxes and accounting for 17.9% of the budget. when he left office, he reduced that to 28% taxes and paying 25% of the budget. so it works. they get more money -- neil: he never let anything ruffle. you know him personally, he never winced at the criticism, never let people see that. how did he deal with the people who ripped him a new one with this thing? >> he was a good actor because he felt it and he to feel it, but he did the thing, and kennedy did the thing that trump could do, took it to the people, took a national tour, and got them to phone their congressmen. trump could do that through twitter. it's possible. but it is a new way, hard to compare apples with apples.

>> you never know, doug wead, presidential historian extraordinaire. two hours to go before we say good night to september, good night to the better and as we go into the final quarter of this year. stick around. ♪ 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 . . . .

neil: all right. the dow is on pace to be off today, but up for the quarter t would be eight quarters in a row we've done so, the longest such stretch of gains in some 20

years. i believe that was before trish regan was even born. to you, with very, very busy hour coming ahead. trish: so kind, sir. thanks so much, neil. president trump delivering a powerful america first speech today saying days of losing are over and rebirth of american industry has just begun. in order to bring back those jobs, our wealth, and our great american dream we must first fix our broken tax system. i'm trish regan. welcome, everyone, to "the intelligence report." the market up, year-to-date on the news but you have a market down 18 points right now. president goes out and touts the strength of our economy saying we will continue to grow if we cut taxes. if we give money back to hard-working americans as i have said, that have earned it in the first place. here he is. >> we have a once in a generation opportunity to pass