ah! still a little tender. (vo) go national. go like a pro. maria: that'll do it for us from saudi arabia, thanks to mick murphy, kevin, dagen mcdowell, varney & company begins right now. stuart: we missed you. [laughter] maria: i'm on my way, thanks, stu. stuart: today vote on the budget. today big tech report. those two items set for trump agenda and stock rally. good morning, everyone. a great deal at stake right here if the budget vote fails, say good-bye to fast-track tax cuts, no vote means no help for the republican party in next year's elections and investors would not be happy with a no-vote. it takes 218 votes to passage, it would be close. vote begins

in a few hours, fox business will be tracking the vote in tally and the market's reaction. my opinion, a yes, vote, would help stocks, a no vote would not. amazon, google, microsoft, three gigantic technology companies that have dominated wall street. does their financial performance justify their lofty stock prices? find out today. again, the stakes are very high if the positives and renew that these giants disappoint, well, you can watch out below. now look at this, half hour from now, the dow will open high to the tune about 50 points. get set for another big day, varney & company is about to begin. ♪ ♪ stuart: all right, back to the future's market, look at this. we are going to be up about 50 points at the opening bell. i say they'll get a yes vote on

the budget. maybe that's affecting the market, not what i say but what investors think. opening at 50 at the opening bell. premarket look at twitter, it added more users, 14% more active daily users in most recent quarter, it also admitted that it overstated the number of users during the past three years, nonetheless the stock up 10% in a half hour's time. ford motor company, it's giving minor boost, 12 bucks a share ford motor company. dunkin brands, sales up 2%, not good enough, the stock is down 2 and a half percent. here is a look at alphabet and amazon and amazon have performed since the election. remember, they have gone straight up since the election. all three of them report their profits today after the market closes. a lot depends on that report, those three reports later today.

by the way, 4:00 o'clock this afternoon after the bell, break it down for those big techs for you. that's must-watch viewing, 4:00 o'clock fox business. now, we've dealt with money, i think it's time we got on to the subject of politics, we do a lot on the program. key house vote on the budget. joining us david mcintosh, he's in new york, he should be in dc. >> we are watching closely what's going on down there. stuart: i say they get 218 votes because they can't afford to say no. what say you? >> they can't afford to say no, the budget will pass today. stuart: it's suppose to be narrow, 219, 220? >> much bigger than that. no republican is going to want to be a no on this budget that leads to tax cuts. they're negotiating some of the provisions, you mentioned them, the state and local. stuart: i want to talk about that state and local taxes at

the moment you can deduct them from federal tax return, the proposal is you can't deduct. 33 republicans from the house who live in and represent high-taxed states, you would do away with the deduction and 33 republicans are toast, you still say they'll vote for the budget? >> i do think they will. first one i think speaker ryan will compromise on that issue, but second, this is a small matter compared to the huge tax cuts that their constituents are going to be getting. i don't think they wanting to home and tell every small businessman, hey, you're stuck at 35% rather than 25%. they're jumping over nickels to get penny. stuart: you think paul ryan will negotiate either away or limit the scope of this nondeductibility. >> they'll end up limiting it. it's unfortunate, it's the right thing to do but politics requires them to come up with a compromise because the bigger goal of a huge progrowth tax

cut, you know, $4,000 more for middle-class earner when they do tax cuts. that's a lot of money on the table. stuart: what republican can vote against that? >> not if they want to be reelected. stuart: well said. quick on 401(k)'s, there's some talk that there would be restricted on how much you can put in tax-free, you don't want that, do you? >> no, they should leave that completely intact. that's a huge benefit to the middle class. stuart: david mcintosh says we will get, yes on budget, yes we will get rid away the idea of taking state and local taxes and yes, get rid of restrictions on 401(k)'s? >> i will compromise on that, the biggest is tax cut for republicans, unleash tremendous growth. we are behind them -- let them compromise, get the job done. stuart: david, thank you very much for being with us in new

york. we appreciate you being here. >> my pleasure. stuart: thank you very much, we have a special guest coming up in the next hour, house majority steve scalise, first time on varney & company since he was shot at baseball practice. he's the one who organizes the vote, he's the when i happen, we will ask him about 10:00 o'clock this morning. now this, hillary clinton is facing multiple scandals regarding that uranium deal as well as the antitrump dossier but she says it's the republican party that should be worried. roll that tape. >> the republican party is imploding. it is becoming a far-right captive party, ideological, religious and commercial interest, it is at the mercy of its financial backers and leaders. stuart: okay. imploding, big word there. lisa boothe with us, fox news

contributor and washington columnist. i think that hillary is trying to distract from the scandals but i want to take her at face value. do you think the republican party is imploding as we have seen this fight going on in the senate? >> no, by no means at all. i mean, stuart, can you please tell me in anyway that the democratic party has had any successes as of late. they have suffered historic losses under president obama or during president obama's term. they control fewer legislatures than any other time in history. republicans have a majority of governorship, we control both bodies of congress, the white house, the rnc has $44 million in cash on hand, the democrats have about 7 million. the democrats are 0 in 4 in special elections. i can't think of an area where the democrat party have seen successes. stuart: how about this? republicans running congress and the white house haven't gotten

much done in the 11 months since the election. you could say that, couldn't you? >> you could say that as of right now. i do think they will get tax reform done which will be a big sea change for republicans and imperative heading into midterm elections as well. i think you have seen success in terms of shift in the economy. we have seen successes in rolling back regulations. that's being done by president trump as opposed to congress, but do i think once they get tax reform done, you know, that's certainly going to be a different narrative. stuart: is hillary's tactic of distracting is going to work? not you. >> she's in bigger trouble than she's ever been. the democrat party is frustrated with her. she had an embarrassing loss, she's been embarrassing them on book tour causing unnecessary headaches. i think they are done with her. she doesn't have any cover from her own party. ic they are just really over her, over scandals and problems she causes the party, she's more

vulnerable now than in the past. stuart: they would like it to go away but i don't think they can't. >> what's going to be hilarious, tall interviews that she's doing for book tour will get more interesting. stuart: could be. >> thank you, stuart. stuart: we showed you yesterday, president trump tweeted a video of me from fox&friends. i was talking about the booming economy and the stock market. joining us right now brian brendberg business professor at king's college in manhattan. i was saying there yesterday that the economy is doing very well, it's the greatest story never told. the media won't touch this with a 10-foot pole, am i right in the premise that the economy is doing well? >> i agree with you in your premise, i disagree with you that it's not being covered, the problem it's not that it's being covered, the problem is getting lost in the noise. the thing you did yesterday you

made the case su -- clearly. you cut the noise out, that story goes through. stuart: presidential tweets? >> you have to clear that noise out because what you're saying is compelling but people have to hear it and right now the den is too much, there's too much noise. liz: you're a very compelling anchor, by the way. stuart: last question, brian, if we get tax cuts in whatever form, do we get 4% growth next year? >> 4% growth next year, no, that's way too high. stuart: 3 and a half. >> i staid 3 and a half and that's very aggressive. if we get anything north of 3 it's really good but 4 is way too high. let's not been unrealistic, stuart. stuart: let's not be unrealistic, not on this program. you're was in the next few minutes as well.

ken stern, the former ceo of npr, he says, yes, there is a liberal bias in the media and he used to run npr. liz: npr admits it big story. stuart: defense experts warning congress north korea could hit congress with electromagnetic pulse, attack could wipe out power grid and kill 90% of population, talk about extremes, you have it right there. the latest on uranium one scandal, the department of justice lifting a gag order allowing informant to tell congress what he knows about the link between uranium sales and russia and the clinton foundation. stay right there we are covering that money would last them. how long do you think we'll keep -- it.

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stuart: gary cohn floating the idea of raising gas tax to pay for infrastructure, details. liz: didn't say how much. a user fee for consumers to use

the roads and highways and bridges, this is to pay for the trillion dollar infrastructure plan. white house quick to say, we are not for raising gas taxes at all. by the way, the argument from the president has been are you going to earmark that money specifically for roads or bridges or are you going to build howard dean bicycle paths or landscaping on the roads, big fight. brian: noise, the noise that we were talking about getting tax reform done, this is the noise that messes things up. stuart: from the president. brian: from his administration. liz: the white house undercutting gary cohn. stuart: looks like it. uranium deal involving hillary clinton, big news there. the defense department has lifted gag order, that informant can now speak to congress directly. joining us congressman ron desantis. congressman, could you establish for us the significance of this gag order being lifted? >> well, i think it's huge,

stuart, this individual was recruit today help lobby for russian interests in 2009. he realized very shortly that this was not enough and he immediately went to the fbi and they made him a confidential informant back in 2009 and that was a year and a half before the uranium one deal was actually approved by the obama administration. stuart: he's in a position to speak directly of who did what, which clinton did what with which russian and which uranium company? he knows firsthand what went on, right? >> i think he knows firsthand what the underbrush that was leading to facilitating this deal. he's going to say that the russians were concern with favorite with the clintons. we have to bring him in and go through with all of that. i think it's going to be significant when he comes in and able to tell a story free of many constraints.

stuart: we won't reveal identity because there's threats from the russians, as i understand it. >> he's concerned for his safety, look, almost like a spy novel but that's where we are. stuart: i want to talk about the budget vote today. we are informed by our producer in washington that the timing of the budget vote may, may be moved up a little bit starting maybe around 10:30 this morning, maybe. if that's the case u that sounds like the republicans in the house, yourself included are pretty convinced you'll get the 218 votes; is that right? >> i hope so. i think this is something that, you know, the budget, the different areas of it, a lot of it is not binding, but we would prefer to have reality that the senate has 52 republicans, very difficult for them to get 50 votes for anything. they were able to pass this budget which paves the way to do significant tax reform. i think the time is now to pass

the budget that the senate passed so we can unveil the house bill and pass it on house floor in november. if we do that, i think we are going to be in good budget. stuart: consequences of a no vote on budget could be catastrophic on the republican party, the president's growth plan and the fast track to tax plans, catastrophic? >> i think that's right. if people had problems with the budget and they readied it, went to conference, you could potentially get a budget. that would happen weeks later, by the time you got tax bill, we are going into next year. it's important to do tax bill this year because i want rate reductions to apply retroactively to january 1st, if we do that that provided the add ed you you umpth in the economy. stuart: gigantic boost to the economy with reductions next year. >> most of the house members are

very much interested in doing that and that's why we want to get this done, budget done today, roll out the bill, have the ways and means committee do mark-up and let's debate this thing on the house floor. makes a big difference whether you get this done this year versus early next year. stuart: got it, congressman ron ron desantis. liz: right in time for midterms. we didn't hear this talk coming out of the senate. now he's bringing it back up. that's a big deal. stuart: if congressman desantis is accurate and this happens that you pass it this year and it's back date today january the first, you know, brian, you to rethink -- [laughter] stuart: you get a huge tax refund. brian: not going to get ut -- us to 4%. stuart: listen to this, a

college in missouri with new course of patriotism, if you want to graduate, you to take the course. details on that after this

stuart: christian college in missouri requiring all freshmen

to take a class in patriotism, what do they have to do? liz: patriotic education, flag protocol, military customs and about the history of patriotism and american politics. it's launched back by a marine general sits on board of trustees. stuart: did you just tell me that the teams that played for this college will not play other teams which do not stand for a flag? liz: that is correct. stuart: brendberg, professor, what do you say about this? >> i like the substance of the class because it creates appreciation. you have to call it patriotism 101, i don't know if you have to call it that. appreciation of key component of a free society and that's the military. liz: defines patriotism. stuart: listen to this one, special you, brian, a mathematics professor rochelle gutiérrez, algebra and geometry

are racist. on many levels mathematics operates at whitens who gets credit for developing mathematics and capable in mathematics and seen as part of mathematical community generally viewed as white, your response, brian? brian: so demeaning to minority populations saying they cannot learn math, that's totally irrelevant. we have a huge math problem in the country. our scores are legging behind and here in the academic profession talk about how we name pie or instead of talking how we teach students. stuart: i think you oppose this, don't you? brian: i oppose. stuart: we will open market in four and a half minute's time, tune to the up 50 points. nasdaq may be lower. that implies that pretty sure they'll get the 218 votes they need, that's why the dow industrial is up 57 points.

back in a second

stuart: now, we are going to open the market for trading in what about 20-odd seconds, we are likely to go up at the opening bell. why did we go up in the opening bell, two reasons, number one the earnings report, the profit

reports thus far are pretty good in line with profit report that is we have received previously, pretty good so far. secondly, there's a vote on the budget today later this morning. odds are, looks like it'll be a yes and that's a plus for the market. so here we go, wednesday morning, that's yesterday's close by the way, we are not down 112. we are now up 76, 80 points. look at that. right from the get-go, we replace and retrace our steps almost all of yesterday's losses gone right there at the opening bell. i am seeing all kinds of green, 100 points up. this has to be that a yes vote on the budget is now expected by the republican party. up 100, that's a gain of nearly half percent. show me the s&p 500. i want to see if this is a broad-base rally, it is. not as strong on s&p than the dow. now the nasdaq just up a

fraction. so technology not performing as well as the other major stock groups. all right, we are gearing up for the big three to report their earnings after the bell this afternoon, this is preearnings, okay, amazon is up 8 bucks, alphabet is up 10 bucks. that's pretty close to all-time high. that's in advance of earnings later on this afternoon. alphabet reporting after the market close as we said. twitter it said it added more users in the quarter, 14% more active daily users, look at it go. 11% higher. now it did say they've been overestimating the number of users over the past three years, market doesn't seem to care. 14% active daily user increase up she goes. 2 bucks higher, 11%. who is with us on this moment,

elizabeth mcdonald, brian brendberg and scott martin, scott, to you first, what do you -- i am going to start with later today. amazon, google, microsoft u extremely important earnings, what are you expecting? >> good things, stuart, if you look at the market's performance this year is due to big techs companies that you mentioned, specially the googles, amazons, apples. the first meal of the meal next week. this is indicater of how tech is going to perform in the quarter's earnings, given the fact that stock performance has been good this year, i'm expecting more of the same. if you have a chance before the end of the day, if you're looking to add to positions i would do so. stuart: you would do so. lizzie, you say big techs have been down a little bit. liz: last six of seven sessions.

operating ordinary -- earnings . expectation is about 7. they are coming in sweep for the broader market. stuart: stocks are up this morning before we get the official -- liz: that is correct. stuart: two different forecasts for market. number one jpmorgan analyst david kelly says he expects a rough time ahead for investors, that's what he says. a new survey from the center for audit quality shows 85% of investors are confident in the market, they think the economy is growing, the confident in president trump's growth agenda. brian you stand firmly with them on that? brian: the worldwide economy is strong getting better and you have tax reform that looks like it's getting momentum, that's going to push things ahead in the year. stuart: we are up 106 points. that puts at 23,436. how about that? i think the market believe we will get a yes on the budget.

that's what i'm thinking. morgan stanley announced that taking ge away and out of dividend portfolio fund because the dividend is threatened so come on in scott martin, 21.50 on ge, would you buy it? >> no, i'm not touching this one not even with your money, stuart. i think though you like people's express. stuart: cheap shot. [laughter] >> favorite memories, by the way. here is the thing, sentiment on ge is getting there. being investor and as we invest client money, one of the things we look at is sentiment and eventually things are going to get bad it's good. they need to go through company break-up talk. they need to get passed dividend talk. >> for the average investor who is investing long-term, ge at 21 looks good. what am i missing?

liz: it could go down further. stay with me on this. this has been a go-nowhere stock for the last 20 years. you have to wonder if dow committee, dow jones quicks ge out of dow stock and put in honeywell. indicative of broader sector. is there justification for keeping ge in the dow if it cuts dividend? stuart: i will take you as a no. i'm a yes, i would. check out the big board. it's worth checking, 108, 109 points. 23,436, all of yesterday's loss wiped out in the first five minutes of business. i've got three major airlines reporting profits this morning. all of them pretty good, american, spirit, southwest, all in the upside. spirit is up -- squinting, 9% higher.

not bad, dunkin brands, sales up 2%, not good enough. the stock is down 2%. better sales of candy, that's boosting hershey or it was. the stock is down 1 and a half percent. strong pickup struck sales giving ford a modest lift. not too bad. up nearly 2% on ford, 12.26. by the -- the company raised outlook and that helps. ups says profits hurt by hurricane, virtually flat, down 90-odd cents. mix picture for big media companies, time warner is up a bit, comcast is down a bit and charter communications down big time 7%. hard times for a lot of them with cord cutting. that's the story there. the fcc plan to go change media ownership rules next month. expected to get rid of limits on local ownership of tv stations and newspapers.

anything more on this? liz: it's going to be a landmark move because this is a 70's era law that was about diversity of opinion and diversity of ownership and we had the big networks growing stronger. will getting rid of this, what will it do to local media markets? a big impact across the country. >> the market is so much more competitive, this is 1970's stuff, good-bye. stuart: grow up, do it. compete. what's wrong with that? now up 100 points in dow industrials. we have microsoft, usually we get trumpets for this in my honor. ♪ ♪ stuart: 79.23, i think that's an all-time high. that's all-time high. now chipotle, whoa, crushed this week after reporting much lower profits and investors, they're betting that chipotle shares

would fall. i'm not sure what's this about? somebody made $260 million? is that it? i'm not sure of this. scott, would you buy chipotle at 277? >> no, i wouldn't. chipotle has been really a good stock which is basically a bet you make to have the stock go down and that's been the right call. you know, retail as far as restaurants is really tough. consumers change taste often. margins aren't great. when you're looking at things like chipotle, you have to be more careful. these are more a trade versus long-term own and chipotle is not one i would put on my plate. stuart: help me out. liz: the stock went down after earnings, those betting made 261 million, all those guy who is bet against the stock, 261 million. this is the most heavily shorted stock in the restaurant sector and fast casual to scott's point is under duress, most heavily sorted sector in the restaurant

market. stuart: fair point. got it. lowe's will start selling craftsman and power tools next year. craftsman was a sears brand for more than 90 years. another blow to sears looks like that to me, scott. >> sears can't really catch a break. we talk about retail all of the time and the trouble that sears, jc penny, another one of our favorites are not so favorites. you know, these companies are really getting hit hard. i tell you what's interesting, if you think about home improvement, home depot and lowe's that are making it, those places i would focus investment dollars if you're concentrating on retail. not sears and jc penny's of the point. stuart: fair point. regal entertainment, second largest movie theater chain, plans to test out price strategy next year. allow customers to pay less for flops and more for big hits.

what? [laughter] stuart: why else -- brian: fine for regal cinemas. it makes a big difference for them. that's why they want to do this. [laughter] liz: i get excited about these things. finally the free market coming to hollywood, this is a wake-up call to you. quick churning out the flops because we ain't paying for them. this is a shot-out to hollywood about its business model. stuart: investors like it. the stock is up 3% there. not bad. not bad. brian: technology allows you to do that, by the way. price dynamic. stuart: i would pay a much lower ticket price to go and see a movie that other people didn't like. liz: don't you already do that at 1:00 in the afternoon. early-bird special guy. [laughter] stuart: the early-bird specials and i'm the youngers guy there. [laughter] stuart: it's really something.

liz: take his nap. stuart: stop laughing, your time is up. liz: by the way, the three of us will be joining us in about 10 years. stuart: i can go to movies and pay $5 and i think that's a bargain. thank you very much. check the big board. it's a rally. up 104, 105 points, now why? i think it's because looks like they are going to move up the vote on the budget to around maybe 10:30 eastern time this morning. that's earlier than previously expected, that suggests that pretty confident that they'll get the votes to say yes on the budget and that would be a plus for the market, up 104 as we speak. toyota, they're showing off a new model corrolla built and sold in venezuela. liz: really?

[laughter] stuart: white house releasing new documents on kennedy assassination today, more than 50 years after jfk was shot and killed in dallas. question u will we finally find out if oswalt acted alone, did he get help from russia or cuba, will this sell all the conspiracy theories or gave rise to some more, i don't know, but the papers are released today. we are on it. our recent online sales success seems a little... strange?nk

na. ever since we switched to fedex ground business has been great. they're affordable and fast... maybe "too affordable and fast." what if... "people" aren't buying these books online, but "they" are buying them to protect their secrets?!?! hi bill. if that is your real name. it's william actually. hmph! affordable, fast fedex ground.

stuart: yeah, that rally is still going strong. now we are up 115 points. the betting on the market is we will get a yes vote on the budget this morning. how about that? toyota making new investments in venezuela, what an earth is going on nicole?

nicole: supposed to be a bright spot before venezuela and fourth year of recession, toyota coming out and unveiling two new toyota carolla's, one is a family model that would be sold in local currency and the other cost about $30,000 and that would be a combination of the bolivar as well as the u.s. dollars. they are trying to boost venezuela, ten years ago venezuela sold 500,000 units of cars a year, 500,000 versus last year just 3,000. this is toyota's investment and hopes to produce more. they are producing 20 a month. stuart: we got the picture. [laughter] stuart: tokyo bails out caracas partly. all right, nicole, thank you very much, indeed. experts warning congress north korea could wipe out 90% of the u.s. population with an electro

magnetic pulse as well. former u.s. ambassador john bolton. >> we have never seen an electro magnetic impulse attack, 90% of the population is the absolute worst case. real point is that any north korean or iranian capability to hit a target in the united states with a thermo nuclear weapon is a grave danger to us, real threat. stuart: down the road, of course. more important for the immediate future of north korea is surely our president's trip, he goes first with japan and then south korea and then china. ring around north korea, that's an important trip. >> a lot of issues on the trip. he faces shinzo a burkes e, somebody who has been reelected, two-thirds and may well change constitution, worried about

north korea program and china's nuclear program and south korea has difficulty with a soft south korean leader but who is now a little bit more worried as he watches what north korea does. in beijing, xi jinping, i think that's good for trump in a sense. he has two very strong leaders in japan and china. i think he will put it to xi jinping in beijing directly. we have to solve the north korean nuclear program or military force is on the table. stuart: that would be new, would it not? thousands of documents released relating to the jfk assassination. did the russians and cubans do it? >> there are an awful lot of conspiracy theories but i have to say lee harvey oswalt went to moscow, he was trained there, he had a russian wife, he did all kinds of things that certainly looked like somebody was under the direction of the soviet union.

i don't think these papers today will disprove that because if they would, they would have been released about 50 years ago. so, you know, we will have to wait and see, you can assume a lot of conspiracy theories are going to be derived from these papers. stuart: it won't quiet the conspiracy theories, it will enhance the conspiracy theories? >> who killed jack ruby, making sure he didn't confess in torture in dallas. obviously this was a critical point in contemporary american history. the notion that there was a foreign power involved, whether it's castro and cuba or the soviets could have had a substantial effect on the cold war. stuart: last time you were with us, you cast dispersions on soccer. >> i played soccer as a boy and high school, it was great, you got to run around the field and

exercise. for american sports fan where an exciting game is 1-0. that's not my idea of a good time. i like football, 35-28, baseball home runs, that sort of thing. 1 to nothing or the worse, 0 to 0. oh, my god. stuart: have you seen those numbers? [laughter] >> i didn't say i have the majority point of view, i just have the correct point of view. stuart: you're right on both counts. mr. ambassador, appreciate it. check the dow 30 stocks, please. that's a a rally, isn't it? a lot of green left-hand side of screen there. new security measures go into effect today for all flights flying into this country. airlines warning passengers, if you're traveling to america, show up 3 hours early to be prepared -- and be prepared to wait. more varney after this.

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stuart: president trump talk today lou dobbs about the search for the next fed chair. listen to what he had to say about the current fed chair janet yellen. >> i personally believe that janet yellen might be worth keeping. >> i tell you what, she was in

my office three days ago. she was very impressive. i like her a lot. i mean, it's somebody that i am thinking about. i would certainly think about it. stuart: kind of lukewarm i thought there. kind of lukewarm. let me go through candidates here. first of all, candidate taylor, john taylor, the word from the market is if he were to be the fed chair he would raise rates aggressively. brian: if he gets in the chair he moderates views a little bit because it's much tougher to make real decisions in real-time. stuart: jarome powell. brian: more like a yellen. stuart: janet yellen? brian: she's status quo. he's talking, maybe yellen, maybe powell. he doesn't want big change because he's looking real juice from the tax reform and not change in the fed.

keep it steady, focus on fiscal policy tax reform. stuart: there wouldn't be a strong market reaction if janet yellen were confirmed for another term or mr. powell would confirm for term. brian: with taylor you would see a reaction but i do think the market would view him as somebody who might moderate in that chair. i don't see strong reactions either way with candidates. liz: it matters because the president has been tweeting about the stock market gains. stuart: that's right. that plays a role. i want to talk to you, liz, about increase screening measures at airlines for people coming into the united states. the new measures take effect today, first of all, liz, what new mushes are being taken? liz: they're going to be asking you about who helped you pack your bags, where are you traveling from, they are tightening down the questions because the trump administration is worried that terrorist want to turn devices into bombs and using scanning devices on your laptops as well. show up 3 hours ahead of your time, ahead of your travel time to the airports to accommodate

yourself to tighter screening. stuart: that's overseas, people flying to the united states. liz: from 105 countries. 325,000 people coming in through airports. stuart: who would want to fly with that? brian: awful. stuart: one word answer is good, brendberg, thank you very much, indeed. all right, we are habit half an hour away from the house vote on the budget. yes, they have moved up the timetable. they could be starting this vote a half hour from now. that implies they've got the votes. at least that's what the market says because it's up 120 points. who better to confirm that they have the votes than the majority whip, congressman steve scalise, he's organized this vote, he knows what's going on. he's on the show after this. im vern, the orange money retirement rabbit, from voya. riiight. and that means...? i'm the money you save for retirement. i help you get organized so your money could multiply. see?

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stuart: you have to got to stay tuned for this. there is a vote colling we're told within the half hour. it is yes or no on the budget.

as we said throughout the day the stakes, rather, could not be higher. yes, the word is the republicans will eke out a narrow win. there is no certainty however. now here is what is at stake. tax cuts, the trump growth agenda, and next year's elections. big stakes. now let me spell out what a no vote would mean, a no vote. kiss good-bye to tax cuts. if they can't pass this budget the tax plan would require 60 votes, not 50. that is the way congress works. if it takes 60 democrat votes help would be needed and there would be no tax cuts period. next the growth agenda, no budget, means no tax cuts, which means we don't grow this economy beyond the current rate of 3%. here is the real kicker. a no vote would surely mean doom for the republican party in next year's elections. if there is one thing the gop

stands for. fail on that and you will fail at the ballot box. the other side of the coin is of course a yes vote. that would mean fast track to tax cuts. a yes vote mean as boost for breath. a yes vote means plus for republicans next year. now 218 votes are needed to pass this budget. the vote counters believe they will get the it 18. we'll talk to majority whip steve scalise. he is the guy who organized this vote. he is with us in five minutes. stay there. watch this unfold and watch the markets reaction to it. the second hour of hour of "varney & company" is about to begin. ♪ stuart: yes of course we're all over the budget vote. first the latest on mortgage rates. liz: 3.94% for the 30-year. up slightly from 3.88 last year. new home sales hit a 10-year high. why?

because those prices are going up and people in the market see that look at house price appreciation, up 40% over last four years. the median price for a new home, record highs, 353-k. maybe everybody needs to get off the couch and buy. stuart: why, why. liz: historically very cheap. stuart: historically cheap. thank you, liz. liz: sure. stuart: we're up 111. the market believes we will get a yes on the budget. these titans report after the bell today, profits and revenues after the bell. in advance of that google and microsoft on the up side. significantly so too. we have comcast. the worst quarterly loss of subscribers in three years. this is cord cutting writ large. the stock is down 1.7%. on other hand, time warner, are

reporting better revenue, most coming from hbo. how about twitter? big guest gain in over a year. they made better profits. the story is not entirely rosy from twitter. we'll have more in just a moment but the stock is up 11%. come on in right now, congressman steve scalise, the man who whips the votes so to speak. sir, you have to be confident that you have the 218 votes. you are, aren't you? >> stuart we'll pass the budget. it is always tough to pass a budget. we weren't able to get down done last year. we'll get one today. this starts process of cutting taxes for all american families, getting the economy back on track. it is a very important vote especially important to move president trump's agenda for middle class tax relief. stuart: i have this coming from our producer in washington, d.c., chad pergram. he says the house liberty caucus, a group of nine libertarians and conservatives say they do not support the budget.

when do you say to that, sir? >> obviously we don't have full support from our conference. you have got some on both ends of the spectrum are opposed to it for various reasons but at sail time the vast majority of our conference recognize this is critically important to getting the process started to provide tax relief for the middle class. to get our economy back on track. so you know, it is always a close vote, if you look historically, budgets don't pass by wide margins, but the important thing we get it done today. stuart: there are 33 republicans in the house who represent high-taxed states. those 33 republicans have a real problem with the, getting away from, getting rid of the deduction for state and local taxes. if you don't have those 33 votes, you don't pass the budget. you're smiling. where do they stand? >> we're working with all of those members. some will maybe oppose the budget today. some will vote for it because they know we're working very

closely with them. from speaker ryan on down we committed to help them solve this problem. so in good faith they're working with us. ultimately the tax reform bill will be the place where we address that problem, but, we're working with them right now. and a lot will support the bill. stuart: are you also working on this idea that you reduce the benefits of the 401(k) tax deduction? >> you're getting now what details might be in or out of the tax bill. i can't speak to that because the chairman of the ways and means committee and all of his members are working on the details and they haven't filed a bill yet. ultimately we're focused on cutting taxes across the board, providing middle class tax relief. as you know, stuart, so many tens of thousands of jobs left the country because we're not competitive, we'll bring the jobs back to america. that helps us rebuild middle class that evaporated over last several years. stuart: a great pleasure to have you back on the program.

wonderful to see you back in action in d.c. >> it is great to be back at work. stuart: great to see you, sir, really is, but i do want to close with this. you are convinced that you have got 218 votes to pass the budget, yes? >> i know that we've been working very closely with our members and we're going to have the votes to pass the budget. it will always be a close vote but at the same time our members know what this means in terms of getting the process started, working with president trump to provide middle class tax relief to make our country competitive again. stuart: when you were organizing the vote, you're the whip, when you're whipping them into line, did you lay down the law that it would be catastrophic to vote no? >> they know what is at stake. it is educational process. i won't share all the tools we use to educate. our members know what is at stake. they know this is part of president trump's agenda. we want president trump to be

successful the i love working with president trump. he wants to get the economy moving again. stuart: i'm laughing, sir, you don't want to reveal all the tools. sounds like implements of torture. >> won't give them all away. fear is a great motivator. having good policy, educational process how important it is to the country, that is really what is at stake. stuart: congressman, steve scalise. great to have you back. thanks for being with us. much obliged. come on in charles hurt, fox news contributor. charles, he would not say, yes, we got the votes but the market says yes, they bottom the votes. where do you stand on this? >> i generally trust the markets than i do just about anybody around here. i suspect they probably have the votes, just enough votes, because as you laid out quite well at the top of the hour, the alternative for republicans no matter whether you're from, no matter where you are on the

political spectrum, the alternative for republicans would be devastating. let's be clear. this is a pretty low bar we're setting for republicans to get this across anyway. stuart: i mean just a blueprint which changes dramatically, once it goes up to the senate, they get together. what they pass today, not exactly what we end up with in the future, is it? >> exactly. i certainly understand how somebody like peter king doesn't want to vote for something that removes the tax exemption, the tax break for high taxed areas but you know, i would imagine -- and what is in the blueprint i don't think will be obviously what winds up being the final thing but there is a lot of room for negotiation between the position that peter king wants and position somebody like lindsey graham who comes from a low-taxed state basically subsidizing high-taxed areas. there is a lot of room in between those two to find compromise.

>> charles, it seems like we're setting up a win for the president on the budget and then, probably a win on tax cuts before the end of the year. is that why the democrats, in particular hillary clinton, are kind of distracting away from the president's potential win here? i mean hillary clinton says that the republican party is imploding. i know you're laughing. i can hear you here. >> yeah. stuart: what is going on here? >> i mean the clintons, they're very good sort of deflecting and trying to make people look at a shiny object while they carry on their unbelievable shenanigans. this is a perfect example of that. and, i love the way that she sort of expressed concern about the republican party that's imploding. trust me, she would not be upset if the republican party imploded. she wished it had imploded earlier so she could be president now, which of course she will never be.

no, i think that is right. i do think the republicans are poised to give a tremendous victory to the president and, quite frankly to themselves because if they don't get this thing done, i would argue if they don't get it done before the end of the year, it will be devastating for them trying to run, for re-election. stuart: it is all about growth, isn't it? >> yeah. stuart: you have to grow the economy to restore prosperity. to grow the economy, you need tax cuts, stimulus to the private sector and budget and tax-cut package will provide. it is a win for the president, if he gets these two things boeing before the end of the year. >> absolutely. don't forget this, stuart. all the things sort of don't get a lot of stories written about but, president trump is doing under the radar, about cutting red tape, and trying to clear out some of the underbrush of this massive disasterous bureaucracy that we have here, that chokes, not only personal liberties and people, you know, individuals, but also corporations, and companies from

and small businesses from actually getting things done, all that cutting of red tape does tremendous good for the economy as well. stuart: well-said, charles. i'm trying to get a mortgage at the moment. going through the red tape, the paperwork is murder, murder. >> 30, 40, 60 pages, it is incredible. stuart: documentation you have to produce. any changes in a couple weeks you have to go all the way back to do it all over again. drives you up the wall, i'm telling you. that is my personal beef. lad, i think we have a budget yes vote coming up. we'll see. thank you. >> thank you, sir. stuart: look at twitter. let's not forget this. 11% gain. they added four million monthly active users, liz? >> but here is the thing. there is discussion that twitter admitting some of the users, one million, two million, were double counted, but had to do with app people were using. they're saying we're twitter

users so twitter may have accidentally counted them. daily active users up 14%. they have 30 million users. twitter does have a place in the world. people go to it for news and updates. i think that twitter showed pretty decent numbers. stuart: $19 a share for some time. liz: that's correct. stuart: 11% gain is nice one. liz: trending underwater below the ipo price. stuart: i was expecting someone to buy it. liberal media bias is real. wait until you find out who is saying it, former ceo of npr. he says liberal bias in the media is real. he is here to tell us all about it. prototypes for president trump's big beautiful wall, must be finished today. you're looking at them right now. next they test the eight options. we're on it. plus the house voting on the budget. we'll bring it to you live, follow the voting tally. 218 is the magic number.

you are watching history unfold as the second hour of "varney & company" rolls on. ♪ well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.

stuart: breaking news for you ton tesla. the united autor workers union filed charges against them on workers let go in the mass firing last month. the stock is dead flat, unchanged. 326. big board show as nice gain, up 104 points the market is expecting a yes vote on the budget which is about to take place. ab inbev, makers of budweiser, the company working to cut costs. it is losing market share. the hurricanes in texas and florida did not help. the stock is down nearly 2%.

ab inbev. chipotle is down again this morning. activist investor bill ackman, he lost about 100 poll dollars as a result of this recent slide. our next guest, the former ceo of npr. he witnessed first-hand the liberal bias in the mainstream media. come on in ken stern, president of palisades media ventures. of the republican like me. how i left the label bubble and learned to love the right. i wasn't expecting this a former ceo of npr which i expect is left of center. you're saying that the liberal media is cabal of leftists? >> stuart, let's take a step back. thanks for having me on the show. let's give con text to this. places like "new york times" and wash upon post have great reporters, but they tend to be cut from the same idealogical

cloth and background. they live in the same acela corridor bubble and that has impact on what they think is important and how they think about stories. and the reason for my book, is, i think we're all living in our own bubbles. we're much more demographically, geographically isolated from the other side. that is why i took a journey from my liberal bubble to meet as many republicans to understand the world from their perspective. stuart: that is interesting. you're right. we're idealogically split. people on the left tend to watch certain news channels and read certain newspapers but you try to break out of that. you went to meet republicans. what do you find? >> so i will say, i had extraordinary experience, went to churches and pig hunts and youngstown, ohio, pike'sville, kentucky and met extraordinary people. when i say i learned to love the right, i didn't have to agree with everything everyone said but i met extra nary people

doing extraordinary things for their communities. what i found we're inspreadably moderate country and moderate people. people tend to gravitate toward the middle, see value on both sides. it is not reflected in the media and political parties. stuart: the people you went out to meet, church groups, pig roasts, those people are not represented in the media. we fly over. the coastal elites fly backwards and forwards. they fly over those people. you went out deliberately to meet them, right? >> yeah. at first a lot of my preconceptions about the people i would meet, just an example -- stuart: hold on a second, sir, forgive me for this. my impression is the that the coastal elites look down on others. i remember this from my childhood. i was born and raised in england. i know all about class consciousness and class based child. i remember looked down because i'm not in aristocracy.

i reacted bitterly. i bet you found the same thing in fly over people. >> i think you're right they do not like being be looking downed upon. it is easy to demonize people if you don't know them. we used to have moderate democrats and republicans and they mixed. they did a poll in virginia, equally divided state. do you have any friend and relatives trump voters, other clinton voters did same thing. the other half didn't have anybody from the other side. easy to look down, easy to demonize them. easy to think they're much worse than they are. we have to change that. stuart: okay. good luck with that. but sir, look, seriously, that was very interesting. thank you very much for joining us. we'll get ahold of that book and look at it. thank you, sir. >> thanks for having me on the show. >> how about this? construction of those prototypes for the border wall, they are --

got to be done, finished today. next they will test eight options. how will they test a wall? can you get over it or around it or under it? that is the test. we're on it after this. ♪ whoooo.

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call, visit, or go to xfinitymobile.com. stuart: buffalo wild wings. liz: i think it is delicious. stuart: super bowl is a long way away. the stock is up big. up 17%. why? they look to the future, maybe future super bowl. things will be rosy. up she goes. 17% on that stock.

let's get to politics and the prototypes for the president's u.s.-mexico border wall. they're due today, you have to finish them by today. eight, nearly finished models a few miles outside of san diego. you will test them. how do you test them? i don't know. let's bring in border patrol union president brandon judge. do you have any idea how you test these things, put a ladder and jump over them or tunnel under or go around them? who you do you test the walls? >> all of the above. the most cost effective way to build-a-bear year that allows us to dictate where illegal border crosses take place. we look how hard are they to dig under? how hard are they to get over. can agents see through the walls coming up to the border? they will factor into the best wall and best wall at the cost to taxpayers so we get border security. stuart: i don't think till with be a solid wall all the way

along the bored he. it will be a fence here. maybe technology there. a wall there. is that how things are going to shake out? >> it is called strategic locations. al us to dictate where illegal border crossings take place. that will allow to us be as successful as possible. stuart: i want your take on this. a msnbc reporter covering the border wall, conducting an interview, was interrupted. listen to this, brandon. >> what happened? people are crossing. almost on cue a group of asylum seekers, migrants not from mexico, jumped over the existing fence to turn themselves in to border agents on horseback. a small group of three people jumped over, a girl with a pink backpack. stuart: that is why we need a wall, isn't it? >> that is prove positive. if msnbc had any dignity whatsoever, any honesty whatsoever, they would have stopped their script right there, would have said, this is why we need a border wall. what i hoped that your viewers

understand, is that this president has done more for border security in such a short time than any other president in my history, including the great ronald reagan. you know check that off the box, promise kept. this president is doing what he has promised to do. stuart, you know, again going back to msnbc, i have been on this show. you challenged me on the wall. that is fair and balanced. that is looking at things from all perspectives. i expect to be challenged on those things, not just be a cheerleader. stuart: brandon judge, you're all right. thanks for joining us, sir. you can come again. >> appreciate it. stuart: thank you very much. now where is this market? at the moment we're up about 100 points. 99 to be precise. we were up 120. now we're up just a hundred. seems to me as you see on bottom of your screen, we're awaiting a house budget vote. i think investors believe we'll get a yes on the budget vote. that is why the market is higher

this morning. okay. that is what we're doing now. the big tech names. look at them please. amazon, microsoft, alphabet, reporting late this afternoon, as you walk up to those numbers, the financial performance of those companies, they're all higher except amazon which is down a tiny fraction, 14 cents. that is all it is. three big techs report today. google, amazon, microsoft. look who is here charles payne. host of "making money" on the fox business network. now these, the big techs -- >> yeah. stuart: they have had one gigantic run-up, right, since the election and since before then? >> right. stuart: they have got to turn in a spectacular performance to go higher. >> agree. amazon is the new bellwether of the group. earnings are expected to be significantly less than a year ago. it is always about the top line. 42 billion, versus 32 billion

very just a year ago. what is interesting about amazon we haven't looked at before is american e-commerce. remember walmart couple weeks ago, reported numbers, e-commerce was through the roof and gave guidance. >> yes. >> maybe brick-and-mortar rivals are nipping at their heels. we'll look closely at cloud business and u.s. e-commerce business. stuart: you make recommendation, you i like this, i think this is going here and here. tell us, where do you think, microsoft, where it is going? >> microsoft i'm a little concerned about. stuart: wait, wait. >> i know you long, i know you're long. stuart: i am invested in it. >> you're a long-term investor. stuart: yes. >> street is looking for 72 cents which would be unchange ad year ago. the cloud, azores business. they were up 97% year-over-year. two quarters before that, 93%. they must keep that pace going. they need a significant cloud

number. the rest of their business is plodding along. stuart: okay. >> i'm concerned. i'm concerned about intel, not too long ago, intel, on august 25th, $34 a share. it is up to 41 bucks. made a move into the earnings report. same as microsoft. the bottom line will be same as year ago. internals to show they're shifting into new businesses to make up for the old businesses. i'm a little concerned. they won't crash. stuart: okay. payne, you ever want to come back? >> i'm trying. i'm trying. stuart: we have a survey, the center for audit quality. it says 85% of investors, charles, are confident in the markets. they have confidence in this market, confidence in growth. on the other hand, jpmorgan cautioning about rougher times ahead. now, you know, when the market has gone up so much, i can understand people saying time to

lighten up a little, sleep well at night. >> that is true. let me talk about jpmorgan warnings in 2017. march 6th, they said increasing rick of selloff because of the fed. be poised for a sharp drop in the markets. how about june? put out five reasons for the market to crash. their tech analyst said there is late summer crash. this is common theme from jpmorgan. after the election from january, wall street executives sold $100 million worth of stock the they have not bought into the trump rally. they have not bought into the trump agenda. a lot of limousine liberals down there haven't bought into the fact things are turning around almost without their help. stuart: hold on one second, charles. justin, i know kevin brady, chair of house ways and means committee. i see him speaking there. let's listen in. >> real tax reform is on the

way. a no vote as we heard from our democrat colleagues is to block tax reform and defend the status quo. we are working closely with president trump to lead this charge. together we have bold ideas to deliver more jobs, fair taxes, bigger paychecks for all americans this year. i want to thank chairman black and the budget committee for all their hard work. i want to encourage my colleagues to vote yes, vote yes on tax reform, an join me in taking an important historic step forward to deliver on our tax reform promise. i yield back. >> chairman yields back. chairman from kentucky is recognized. >> we reserve. >> chairman reserves. stuart: that was kevin brady very important guy, chairman of the house ways and means committee. they write the tax code. yesterday there was all the questions about the 401(k), are we reducing the tax break you get when you put money in, or keep it where it is. that is really a concern for

investor because if you limit the 401(k) contribution, that you get a tax break on, you're limiting the amount of money that flows into the stock market. that's not good. >> you are hurting americans having tough time to save in the first place, the very people that propelled republicans in into office the first place. listen, earlier in the week president trump said 401(k)s were off the table. yesterday they were on the table, the market crashed. tell you now, i'm glad you came in the time you did with kevin brady, he articulated with president trump that they're on the same page. i hope so. liz: why is it a bargaining chip, 401(k)s? at a time social security is literally insolvent in decade? that is issue. stuart: that is tactic. we'll throw this out there. we know it is unpopular so we condition withdraw it. liz: this is republicans. they're our 401(k)s. why is it a bargaining chip? stuart: those want to pay for tax cuts elsewhere, charles.

>> the problem with reconciliation, technically you're supposed to pay for tax cuts. you know, i'm so curious as to why republicans are negotiating amongst themselves in public like this. it just doesn't make sense. liz: they didn't like it when donald trump tried to take command. >> alternative would be getting rid of state and local deductions. one or the other has to be hit to get this anywhere close to neutrality. stuart: will be deduction for state and local taxes that is hit. >> it will be. liz: those policies have louder voice than little mom-and-pop investors out there for their 401(k)s, who is fighting for them in washington, d.c.? stuart: very fair point, liz. i'm with you. they shouldn't touch 401(k)s. liz: shouldn't touch them at all come in please, larry o'connor, mediaite. editor. i want to talk hillary clinton. >> i'm good on either, you

betcha. i'm ready. stuart: she says, i think this is an attempt to distract from her scandal problem, she says it is the republican party which is imploding. what do you say to that? >> it is really interesting, if i were a democrat in this town, and thank god i'm not, i would be praying for the day hillary clinton finally leaves the stage. she is crippling this party in this town. not republicans that are imploding. yes, there are a couple of never trump republicans. certainly bob corker, senator from tennessee, joined those ranks. they are speaking out. they were speaking out at convention last year. when people lose sight of this, donald trump got more votes of republicans within his party than hillary clinton got of democrats. it's a tight margin but significant one. 92% of republicans in this country voted for donald trump. like the president said yesterday, there is quite a bit of unity within the ranks of republicans across this country. whether republicans in d.c. are

reflecting what their constituents want them to do, that is another question. i think you're seeing starting with yesterday's news that the republicans are starting to line up behind this president, especially on budget vote we're about to see and tax cuts. your, if a republican can't line up behind a republican president for tax cuts, what good are they? stuart: i was going to ask that question. consequences after no vote on the budget would be catastrophic for the republican party and tax cuts and growth agenda. we got all of that. >> yeah. stuart: do you think the republicans have finally come to understand this is an absolute must, you can to the drop the ball now? >> some republicans. on this budget resolution, we're watching the house, it is dramatic to see this go down, this is kind of a no-brainer. the house under paul ryan actually stepped up. they passed obamacare reveal. they stepped up quite a bit. it is the senate that is a problem. the fact they got this through

the senate, this is big hurdle. this will be a non-event what we're about to watch. absolutely they will do it. stuart: you say yes, they will do it? >> absolutely they will do that. the next big hurdle will be the tax-cut package. as you were discussing with charles, the question who pays for it. i hate that language, it is not up to them who figure out how to pay for my tax cut, it is my money. i should keep my money. you should figure out how to pay for programs without my money. that said because of the reconciliation rules we're under right now, which allows them to forego the 60 vote threshold in the senate for filibuster, they do need to keep this scored on even keel. sadly because of the way the congressional budget office scores these things, they're rarely correct. but they always score it in a way does not show the economic benefit and growth that comes from a tax cut. stuart: larry, break away for a second. left-hand side of the screen. the actual vote on budget itself. the key number to watch is

bottom left, where it says totals. currently says 17. what you're looking for 218. that is the magic number, bottom left of your screen, people voting representatives voting yes on the house budget bill. okay? that is what is going on right now. so watch the bottom left-hand side of the screen there, as it goes up to approaching 218. that is the magic number. larry o'connor, do you have any doubt whatsoever they get 218? >> i don't. they will do it despite hillary clinton's desire to have them fail. hillary clinton is not driving agenda in this town. she needs to lawyer up. stuart: i see one nay vote among republicans. i do not know who that is. >> might be peter king in new york pretty outspoken about it. i think paul ryan can wrangle his forces. stuart: wrangel his forces well-said. larry o'connor. thank you very much. as the vote proceeds watch also

bottom right-hand corner of your screen, that is the market's performance. in my opinion, charles, i need your opinion on this too, i think market really wants to see a yes vote and expects to see a yes vote. that is why it is up 108. >> i agree. i agree 1000%. they want to see accomplishment out of washington, d.c., particular coming to something critical as taxes. stuart: larry, i didn't say good-bye to you. you are still there. >> i will never leave you, stuart. stuart: i want to go back to the two sticks points, deduction for state aplocal taxes, that it goes away. a catastrophe for republicans in high-taxed states. >> yep. stuart: messing around with 401(k)s, that is disaster for america's middle class. >> it is. stuart: i say both are negotiating bargaining chips, i think both will go away. what say you?

>> i'm not sure about the state deduction. i heard you speculating who is speaking up for citizens with 401(k)s and don't want tamperedded with? it appears the president is. he laid it on the line with the gaggle in front of marine one yesterday, he will not touch 401(k)s. congress may want to, he will not. i think that is safe. with regard to the state tax deductions, i'm afraid that is something that will be contemplated. you say disaster for republicans in high-taxed states. the fact of the matter there are not many republicans in high-taxed states like new york and california. stuart: there are 33 of them. >> there are. i'm with you. i'm very worried about this one, i remember in 1986 when ronald reagan brokered his great tax deal then. before the 1986 tax deal americans could deduct interest paid on auto loans and credit card interest. that was one of the give-backs. fine, we'll remove that

deduction from americans in exchange for all of these lower rates. then what happened? within five years, when bill clinton was in in the white house those rates went back up. we didn't get the deduction back again. we'll give it away to make a grand bargain. couple years new president comes in and new congress, they will raise rates and never dee dee -- see the deduction again. liz: to your point, if they lose 22 house republicans, if they vote against it could still pass. you're right, anywhere from 52, 52 house republicans sit in districts overindex to the salt, state and local property tax deduction, and it matters to them, right. stuart: it does. i'm looking two republicans voted no on the budget. i don't know who they are. it would be speculation for me to say. i do not know who they are. larry come back in for a second

here. >> yeah. stuart: there is a lot of tactical voting, is there? the timing of your vote? i would suggest as the vote, you are finishing seven 1/2 minutes. as you get close to the deadline, i can see politicians looking, which way is this thing going? >> yeah. stuart: if it looks like it will be a yes, a lot of democrats might jump on board say yes at that point, you will have a big win. but if it looks like going down to defeat at very last minute they vote no. >> we often see by speakers podium. they start to circle each other. you see whipping going on with some leaders and republicans start to twist arms. let's not conflate two issues. this vote is for the budget. this is to get through this step. they can have the vote on tax reform package. all of those questions about 401(k) deductibility or ceiling on the 401(k) contributions or deductibility

of state and local taxes, that is not on the table today. this is just to pave the way for the next step. this is the easier hurdle. why i don't think it will be that tough. stuart: here is where we are now, 50 yes votes on the budget. there are two republicans who voted no. blake burman is at the white house. i presume that president trump is watching this very, very closely, right, blake? reporter: i would think so. there is nothing on schedule for white house next couple hours. if the president is not watching, a couple folks at white house are. speaking with two top officials from the white house. first one i spoke to earlier this morning, how do you think about the budget vote? i was told they are cautiously optimistic. another white house official i was pinging back and forth with couple minutes ago, told me, quote they feel good about this the white house, stuart, learned lessons on health care and making large proclamations yes, something will happen.

they don't say that anymore around here. the fact they are cautiously optimistic, and feel good, i think speaks volumes. we clearly have to see how the vote comes whatever six, seven, eight minutes. stuart: on the show, a half hour ago, steve scalise, the chief whip for the republicans in the house, he was on the show. he is in a very difficult position. he could not come out say, yes, i absolutely guarranty a yes vote. he too was cautiously optimistic, but he couldn't go gung-ho, say yes, we got this thing in the bag. blake, hold on a second. looking at the voting tally, left-hand side of the screen, i see four republicans have voted no, nay, four, four republicans voted no. the republican party can only afford to lose 22 votes. if there are 22 nays in that column right there on your screens, then that means this budget would go down to defeat. bottom left-hand corner of your screen, currently says, 60,

magic number required, 218. watch those two numbers. you need 218 bottom left. you do not want 22 in the republican ney column. it is now up to five. have i got this, looking at calculator right there, have i got this right? >> you have got it right. we're at five. i thought your interview with representative scalise was amazing because he appeared to be caught flat-footed with the news broke with freedom caucus. stuart: no. liberty caucus. nine members. >> that seemed to have caught him into the footed. this thing is in such major disarray. they moved up the vote, a sign of confidence. this is nail-biter. ashley: to your point, republican peter king of new york, saying to republicans now voting on the budget, that he is urging them, anybody who has questions about that state and local tax deduction, this is peter king saying this now, vote no against the budget today. he is telling them that.

he is saying republican donors, don't give to the republican party if they get rid of the state and local tax deduction. stuart: important to note what peter king is saying there, telling republicans to vote no, because we can't afford to get rid of deduction for state and local taxes, we've got that -- liz: look at the vote is tied. stuart: yes, 75 yes. 75 no. look at that, the dow is at its high for the day. investors watching this minutely, very closely. they think, investors seem to think ultimately it will be a yes vote. bottom left-hand corner of the screen, as we get closer to 218, very, very important. i'm not sure about this time remaining. is that, they have got to vote within the next three minutes? liz: this is nail-biter. now 93-86. stuart: you see a lot of votes come in very, very quickly. it is a horse race. market says they will get 218.

watch the number go. i only see five nay votes or six? liz: eight nay republican votes. liz: now yes for budget taking the lead, 102-90. stuart: it is starting to move. republicans are coming in. mr. trump tweeted this, do not underestimate the unity within the republican party. okay, mr. president, we won't underestimate it. we won't overestimate it either. the dow jones industrials up 120. look at tally. i keep squinting. very sorry folks. 109 yes votes. liz: for republicans. eight nay. 84 for the democrats. stuart: blake burman, still with me please. have i got numbers right here? you can't have more than 22 republicans saying no, is that correct? >>

reporter: correct. stuart, keep in mind the budget went through the house first started out in the house and went to the senate. house trying to adopt the senate version. first time in the house, 18 republicans voted against it. if you believe that 18 is baseline, that is assumption. if you believe that is the baseline. there is not much wiggle room for republicans on this one. stuart: well-said. we're up to 121 on the yes side. the dow industrials up 118 points. now we're up 122 yes votes. blake, this is technical question, it says time remaining, 1:31. does that mean, you got to vote in 1:30, if you don't vote you're out of here? reporter: kind of like the market, 4:00 is the wash but try to figure it out. they have these underground subway systems there, that usher

these congressman to the office and floor. a lot of time, folks, five, six minutes left on the clock. hey i have to go vote. jump on a tram to get to the capitol. the fact you don't see full tally added up at this point is not necessarily something to be worried about. not necessarily something eye-opening this is something we should have a final tally within the next few minutes for sure. stuart: lay it out on the line very clearly here. consequences of a no vote. we don't know the vote yet but consequences of a no vote in my opinion catastrophic. you can say good-bye to tax cuts and good-bye to the president's growth agenda. you can say to the republican party next year as a result of elections. charles, do you agree. >> i don't know what the consequences are because the republicans let voters down a

long time and still get reelected. pew did a study and broke republican party into four different factions. there are unity on core issues. lower taxes you would think is part of republican orthodoxy. stuart: larry o'connor, i'm seeing time remaining zero. is this a point everybody scrambles to get there to cast the vote. >> the clock is more of a guide line than a rule, stuart. they will keep the vote going until they get the votes that they need. in fact i have seen votes sometimes actually go the other way a couple of votes, something gets defeated, keep the vote going until they twist enough arms to bring them back. don't be guided just by that clock. they will keep this going until everybody gets in. stuart: larry, we're doing math vigorously. we have calculators out. there are 62 yes votes we still need to see. >> i got to be honest with you, i'm surprised, i am surprised

only nine nay votes on the table. as you just presented, when this bill first made it out of the house they had 18 nays. what is stopping from the 18 jumping in saying nay unless there is something they get in exchange for their vote. stuart: this is a horse race. totals are moving up rapidly. liz: there could be horse trading going on. larry, makes an important point. the state and local tax deduction is big sticking point. maybe there is horse trading. i'm speculating. based on our sources how to deal with those both. do it at different income levels. still deductions of 401(k)s at different income levels. stuart: possible at very last minute, they're having conversations on floor of the house, i will give you a little on 401(k), i want to take it back on the salt deductions? is that going on? >> beyond possible. i would bet on it. this is just the first step. everybody in the chamber knows there is another major vote

coming actual tax deal. they're standing there to whip scalise, speaker ryan, want ply vote on this, this you have to give me on the next vote down the pipe. that is happening left-hand side of your screen, 174 yes votes. 218 are required. on republican side, there are 10 republicans said no on the budget. it is holding right now at 10 no votes. now 182 on the yes side. i'm desperately trying to do the math. 36 votes away, less than that now. getting very close to the magic number of 218. liz: it's a horse race. stuart: that is exactly what it is. ignore time remaining. they're still going up.

right-hand corner of your screen we're still up 113 points on the dow. we're still away from it. 30 odd votes away from it i think. okay. our own charlie gasparino is reporting that peter king, republican new york, represents a part of long island, he is whipping up republican votes against the budget because of the tax deduction. liz: he is. stuart: on state and local taxes which may go away. if it went away, it would really hurt republicans who represent high-taxed states. those constituents will be absolutely clobbered by that change. that is what peter king is doing at this moment. nonetheless, we are, 218, we're 26 votes away from saying yes to the budget. we're up 115 points on the dow industrials. anybody want to add anything

else? liz: here is the thing about horse trading, they need a finance a tax cut. that is what is going on. there is horse trading keeping the upper income tax bracket in place, that 39.6% rate. there is horse trading going on right now. republicans are learning how to horse trade and negotiate with each other. stuart: what do you say, larry? >> these republicans are driving me nuts on this, we'll get clobbered if we can't deduct state and local income taxes. they're right. what do they need to tell the constituents, we need to fix things in our state. peter king should be screaming about governor cuomo, that these guys need to lower state income taxes. how about we look like tennessee, texas, florida, with no state income taxes? wouldn't be a problem if the statehouse there didn't continue to tax income. why don't they turn this message around, this is why we need to change the leadership in our state? stuart: seven teen votes away. 16 votes away from 218.

bottom left of the screen. 202 where it stands, heading for 218 the republicans hope. >> they got it. stuart: larry, did you say they got it? >> got it. i called this before. stuart: the market is with you, larry. the market is saying yes. >> i'm with the market, stuart. >> market is cautiously optimistic. it is not as confident with larry at this moment. we're in holding pattern. you would think this would happen, does point to how complicated to get tax cuts done. stuart: we're 11 votes away, hit 218, left-hand corner of screen, market go up more? >> it goes up more from here. it will still be cautiously optimistic. we're saying hough of a nail-biter this is. this should be a walk in the park. stuart: here is my prediction, 218 yeses, which means we have a

budget and passed, some republicans will come out of the woodwork, voted their conscience, whatever they're doing. if you hit 218, we're 10 votes away in come no votes. with me on this, larry? >> absolutely right. usually a whip has a handful of congressman in his pocket. they can go back to their district saying hey, i was against it. i'm with charles with the market cautious hi optimistic. it will go up. what this says in braving the way for the next vote on tax cuts. this sends the message d.c. is not completely dysfunctional. that we can get something done in the era of trump. stuart: we're eight votes away. there are 12 no votes among republicans. 191 votes by democrats. 12 nay votes for republicans.

213 yes, five votes away. dow industrials up 117 points. watch the two numbers. liz: look at this. five away. stuart: watch the market. 118 point higher. liz: i'm struck how democrats are not voting for tax cuts. they're acting like walter mondale of tax increases. kennedy, gephardt, rostenkowski, championing the reagan tax cuts. what will the democrats go to midterms with? we said no to tax cuts for you? >> saying no to tax cuts for businesses, is what they will say. liz: and for businesses. stuart: if we hit 218, yes on budget, would we might see democrats vote yes because they're safe. liz: they are safe. stuart: they are chimed in with their own particular point of view. >> you think obstructionists

will switch. i don't think -- stuart: i'm not saying it will. what do you say, larry? >> nancy pelosi has them in line. easy to vote no in the house. it is senate vote. manchin and heitkamp, in states that voted overwhelmingly. that is democrats trump might know he has because he doesn't need bob corker or jeff flake. stuart: we're stalled at 213 yes votes. five short of passing budget. we're stalled. that number has not fon up in about a minute i would guess. larry what is going on the floor? >> they're might waking for your hard break, varney. >> we dropped it. stuart: we're dropping all breaks. >> all of the horse trading we're discussing is going on right now in those fast and furious negotiations. they have reach ad breaking

point now. you mentioned with the liberty caucus. nine members, is that right? look how the nine members factor in the numbers we're watching right now. that could be entire chunk negotiated with, as we speak. stuart: 214 votes say yes. that means we're four votes away. i'm glueded to this, bottom left-hand corner. three votes away. dow up 114. >> nine republican votes left. >> stuart, i want to hear you call the kentucky derby one day. you're so good. >> 1/3 of the republican votes left. stuart: are you say nine republicans left. >> no, nine. three to get it over the finish line. stuart: 19 ney votes among republicans. this is close. market is losing some ground. now up 11 votes. >> three of five remaining republicans. stuart: nicely put, charles.

they need three of remaining five republican votes to be yes. >> now i'm getting nervous. liz: 22, that is it. stuart: 19 ney votes. 20 ney votes it is very close. they are two vote the way and the dow is up. it is a horse race. charles: some cornhusker kickbacks going on. stuart: what is this gentleman up to? he is banging his gavel. >> the motion of the gentleman from california, hr 1698 is amended, the clerk will report the title of the bill. >> 6098 a bill to entitled sanctions against iran with respect to the ballistic missile program of iran. stuart: the iran sanctions bill, they have moved on and we don't know whether we have a budget or not.

the dow is up 119, 118 points. it passed, do we know that? i'm asking my producers. do we know if it passed. trying to hide noticeably investors think it passed. reuters reports it passed. we clipped away from that board before we saw the 218 appear. >> dow jones reporting it. stuart: reuters reports it passed was wish we could have shown it to you. i want to see 218. the dow is up, but not anymore. charles: this is a long tough road ahead of us. this is not what people thought was going to happen when they pulled the lever in november. no one thought it would be this

hard, to get legislation the american public has been clamoring for to get it through. stuart: you would agree with that. who expects a tight vote on a budget with modest tax cuts. >> i felt like the democrat analysts on election night when things didn't go their way. stuart: i don't went any tears from you. it is official. it has passed, it cleared the house, got the 218 it needed. it was a squeaker right up to the last seconds. larry o'connor, thanks for being with us on this historic horse race. blake berman. i know you are still there. all good stuff, blake berman. check the big board. we have got a budget, it passed, got the votes required,

up 112 points. it was up 117 before we got it passed. now we are up 112, the rally has held. is john layfield with me? the man who knows about investing. the passage of the budget opens the way for tax cuts, opens the way for fast tracking tax cuts, opens the way for growth in the economy, i expect to see movement up in stock prices. how about you? >> i agree with everything you said. don't the tax reform, we will see tax cuts, corporate tax cuts. since the august recess the market is up 6% to 8%, most has been recalled with the tax cut, it will happen today validates that. 10 to 15% baking in the market because of tax cut. that is what we lose in the market, continuing to see the trend upwards. stuart: you don't see a big rally in the immediate future. >> know because we have seen the rally, up 27% since the president got elected in the nasdaq and the dow, 20%, 6% to

8% because since the august recess we have seen the rally but the competition overseas is very weak. bonds are expensive, yields are nonexistent, the market is the place to be. i rally continues and will surge forward. stuart: charles payne, you are the money man. will be get another leg up now we passed the budget? charles: it won't be predicated on the budget but legislative wins, but i'm talking about his underpinnings of the economy, durable goods, investing money big time, new home sales through the roof. the economy is moving away that justifies a leg up after we consolidate these gains, looking for another move to the upside. charles: stuart: i want to talk about the three big tech names which report their profits after the bell. this is important for a lot of investors.

are you expecting stellar performance from amazon, google, microsoft? >> i am. compressions will be compressed a little bit since the whole food acquisition for amazon, the cloud business, more competitive pricing, 40% growth is still absolutely amazing, but i think a good earnings report, amazon is one of the highest corporate taxpayers in the united states. if it is cut to 20% will benefit companies like amazon, facebook, home depot, verizon which i own. stuart: thanks for joining us, sorry to cut this short but it is a very active news day, thank you very much. congressman steve russell, republican oklahoma. describe the theme at the last minute as we were approaching 218 votes. looks like a lot of horsetrading on the house floor. >> i think there were some

people watching, holding their cards to their chest but it was a steady vote all the way to the numbers that got us to passage. i didn't see a lot of back and forth and switch votes. it was more getting people to the final numbers we had. stuart: it does seem strange that it should go down to the wire like this. it should be such a very very narrow victory but the republican party which holds power in the house, senate and the white house which is dedicated on cutting taxes, why such an extremely narrow victory for a party like this? >> you could frame it up that way but the reality is we were able to get it from the house to the senate back to the house and now we will go to the next step, tax reform. that is pretty remarkable given senate rules and the different things we have to negotiate around.

i see it and it is pretty amazing we had so many disparate groups come together and get this done. we know that what we have done in the past is piling up deficits and creating a worse economy. we have to move forward. stuart: question on 401(k)s, private pension plans. the suggestion is it would rain the man. are you in favor of that? >> we need to look carefully for that. this is something that affects all americans, the president has given his views on that. we have to study what the ins and outs i. i want to see more before committing to that. stuart: you wear a yes vote. >> i was. i have grave concerns about defense spending. there were things to move this vehicle along the texas back to sequester type defense spending. i don't favor that. if we voted it down we would be there anyway and we are giving

reassurances as we move forward, try to uncouple defense from this sequester type spending, it is killing our military. stuart: it was a pleasure having you on the show. charles and liz, a little worried, the good congressman saying got to do something about the 401(k)s. charles: can't wait to see who voted where. i could have sworn -- she talked about votes changing. interesting to see what changed. we have to handicap how did they get tax cuts through tax reform. this is going to be a problem for them. the contradictory messages coming out of washington dc, donald trump, an outsider trying to heard these guys doing the right thing for the american public rather than the right point. >> republican sound like democrats going after 401(k)s.

this -- middle-class used 401(k)s going the other direction encouraging saving 401(k)s not changing. charles: only 50% of americans have 401(k)s. that is like millions of americans would only 50%? their main vehicle for retirement living a golden life in their old age, are you kidding me? charles: stuart: thank you very much. plenty of other news to get to. the latest in the clinton uranium scandal, lifting a gag order allowing an informer to tell congress about the link between uranium sales, russia and the clinton foundation. we are on it. we had promoted congressman

kevin brady who was supposed to be on the program later this hour, he cannot make it but will be on the show tomorrow. we wait for speaker ryan and get his reaction to the budget passing, 20 minutes from now. the dow is up 100. ♪ the bottom line is, for your goals, this is a strategy i'd recommend. huh. this actually makes sense. now on the next page you'll see a breakdown of costs. what? it's just.... we were going to ask about it but we weren't sure when. so thanks. yeah, that's great. being clear and upfront. multiplied by 14,000 financial advisors, it's a big deal. and it's how edward jones makes sense of investing.

stuart: the latest from donald trump. just tweeted the this, big news, budget just past, nothing controversial about that come into just pass, 218 votes in the house of representatives. i have breaking news on the sports scene. new york yankees, joe girardi won't return as manager next season. the yankees came within one win of the world series, had a job

for ten years, the championship in 2009. the latest on the uranium deal, hillary, the justice department lifted a gag order on an informant, he can speak to congress about it. i realize you are a democrat and you know hillary very well. what is the significance of this gag order being gotten rid of? >> there are so many questions about the deal, how it came to be approved, what was the role of the russians in terms of their bribes, kickbacks, contributions. so many unanswered questions. if this informant helps us answer that we will move the ball down the field. stuart: that informant could provide a tangible evidence there was a quid pro quo, money here, the uranium deal there. >> he could but we don't know

that that will happen. so far no evidence. stuart: the same informant has brought indictments against three people for money laundering in the past. has been involved in this kind of thing before. >> this is the biggest deal yet involving a presidential campaign, the foundation she was part of. bribery at the highest levels. i hope we get the answers. i'm skeptical one informant will know everything. stuart: this could be the crack in the wall, the break and the most important scandal, worst scandal hillary has faced. >> it could be but we don't know. stuart: i want to move to the anti-trump dossier. donald trump made comments on hillary's involvement with lou dobbs. role that tape. >> don't forget hillary clinton denied this, she didn't know anything. all of a sudden -- what i was amazed at, $6 million they paid

and is totally discredited. a total phony, i call it fake news, it is disgraceful, it is disgraceful. stuart: she may have broken campaign finance laws because they didn't report that $5 million deal, they said it was legal services. >> let's say at the outset it is almost certain there was a violation by the dnc and hillary's campaign. you have to report campaign related expenses. there is no loophole for using law firms to commission documents used in the campaign. stuart: did she know about his involvement? >> she says she didn't. stuart: brian solomon says she may have. >> we have to get to the bottom of that. we had to ask her and get answers. these are very fair questions. stuart: a lifetime of scandals.

>> it is now a period of unanswered serious questions that go to the credibility and integrity of her campaign and her time as secretary of state. stuart: if i'm ever in trouble i want you to represent me. >> along as i get some part of that $6 million i will be happy to do it. stuart: stay there, one more issue. gary cohn, the president has right-hand man on economic affairs floating the idea of raising the gas tax. that would bring some money to pay for the infrastructure plan. >> just got a money amount, $0.07. a $0.07 increase, going to $.25, federal gas tax to pay for the trillion dollar infrastructure plan. that infrastructure spending is not in the tax-cut package so

gary cohn saying yes to this, the president saying he's against it, mitch mcconnell and paul ryan don't like it. stuart: you have extreme views on a consumption tax on gas. >> bill clinton floated the idea, his approval numbers went down 10 or 15 points right away in 93. he dropped it like a hot potato. the best advice i can give the trump administration is don't even mention the idea. gary cohn is reported to have been passed over to be the fed chief, leaving the administration after tax reform. best advice to him is hold your powder dry. stuart: thanks very much. 3000 top-secret files related to the jfk assassination will be released today. national archives to release on his website, document were previously withheld but a law passed in 1992 ordered them declassified this year. we know the house passed a budget. we will wait for paul ryan and get his reaction 10 minutes

from now. next, the names of the 20 republican know votes. we will tell you. ♪

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but there were 20 republicans who voted no. 7 from new york, three from new jersey, four, thank you very much, from new jersey. there is an update live on the fly. all of the know votes, 7 from new york, four from new jersey, high tax states. those know votes had everything to do with maybe getting rid of the deduction behind state and local taxes. liz: you see those know votes on the budget. the majority were against getting rid of state and local tax deductions. that is the clarion call for the senate, whether or not the deduction goes away or stays. stuart: some of the people on the screen were from utah, a low tax state but still voted no. maybe their deficit hawks, i

don't know that for a fact. the liberty caucus, none of them voted against it. they are a very tight hope, that is why the dow industrials are no longer up 100 points, the dow is up 77 points and. the dow is up 120 points. that is what investors wanted. they did get a narrow yes vote and up 84 points. tell me that again. justin from utah is 5 of the liberty caucus come of the liberty caucus before the vote that we will vote no. 9 people in that caucus, we can assume the nine liberty caucus members said no. liz: you know who else said no?

claudia tenney. stuart: frequent guest on this program from upstate new york, high tax state. her constituents would have been clobbered if she voted yes on getting rid of the tax deduction. peter king voted no on the budget. claudia tenney, another new yorker, joe kato, got to get these names right, that is what happened. very narrow yes vote. liz: such a nailbiter. a handful of republicans voted against it would have been doomed. stuart: stay right there. speaker ryan will react to the budget passing. ♪

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not thinking clearly, so they called the fire department for us. the system did it's job. our first truck was on the scene within five minutes. i am absolutely grateful we all made it out safely. it's kind of one of those things where you can't even... you can't even thank somebody. people you don't know actually care about you. to protect what you love, call 1-800-adt-cares stuart: big goings-on on capitol hill this morning. the vote on the budget, yes, it passed. it was 216-212. now, we were telling you that it needed 218 votes. yes, it did, but there are some members absent, so they went down to a requirement of 216

votes. they got it, it passed. but, oh, boy, was it a narrow vote, indeed. that was a cliffhanger right til the actual moment of closure of the vote. at that time the dow industrials were up over 120 points, but because it was such a very narrow vote, we came down now to a gain of 88, 90 points. that's what you have. we're voting for speaker ryan who will be commenting on the budget deal moments from now at that podium. when he appears, you will hear it. right now we've got breaking news on general electric. they are thinking about getting out of the railroad business. now, hold on a second, liz -- >> yeah. stuart: does that mean they're thinking of just selling off chunks of the company? >> yeah. and it it's also the health care information technology business. that news just breaking now. so the train business, the transportation, $4.7 billion valuation there. i would imagine that the health care i.t. business is pretty sweet in the price tag as well.

stuart: and the stock is down a bit. >> yeah. its worst performance in eight and a half years. that's a big deal. stuart: if you're selling off profitable chunks of your company, getting rid of them, i would have thought maybe your symptom e -- stock would go up. >> are they going to keep the dave fend intact? who knows? i'm telling you the debate on wall street, does ge get kicked out of the dow and put honeywell in there instead, i'm not sure. stuart: the debate for me is should you buy this thing at -- [laughter] >> people are saying wait. stuart: dan henninger is with us from "the wall street journal," of course. and nan hayworth is with us, right, nan? you're not on the prompter, but i now you're here. [laughter] the independent women's forum. >> indeed. stuart: let's turn to dan first. an extremely narrow vote on the budget. it passed, okay. should i be worried that it was such a narrow vote? >> i don't think you should be overly worried, stuart.

i mean, there's a thing in passing legislation known as regular order. well, cliffhappeningers are becoming -- cliffhangers are becoming regular order in this congress. a lot of house members were being asked to hold their those and vote to the budget so they could get to the tax bill under reconciliation rules. and i think they knew they had enough votes to pass, but they're allowing a significant number of conservative members to say, no, i couldn't vote for this bandage, but nonetheless, i be let it go through. stuart: is that your reading also, nan? >> yeah, stuart. i was on the whip team when i was in congress, and this is what happens with votes like this. members will go to the whip -- steve scalise -- and they'll say can you afford to lose me on this vote. there's a lot of horse trading going on because people want to preserve their electorates. that's why you see all these very fine republicans from new york, who i know potentially, the new york -- personally, who had to vote no. stuart: ladies and gentlemen, paul ryan, speaker of the house, is now speaking.

>> we passed a budget that is fiscally responsible, it strengthens our national defense, and it's really good for taxpayers. most importantly, this budget that we just passed in the house today brings us one step closer to historic tax reform. that means more jobs, fairer taxes, bigger paychecks for americans. too long the american people have been living under a broken system where they see too little of their own hard-earned dollars. they spend hours and hours, they spend dollars just doing their taxes. so much time and money is wasted just complying with this incredibly complicated tax code. only to be rewarded by having a big chunk of their income taken and claimed by the government. it's unsustainable. people really are struggling in this country. so many people are just living paycheck to paycheck. families deserve a break. single moms who live paycheck to paycheck deserve a break. parents working to send their kids to college, they deserve a break. the guy who just got a job a

couple months ago who was unemployed for many months, he deserves a break. our tax reform plan invests in these people, in real people. because we really believe that families know how to invest their dollars better than the federal government. we believe that families need a break. tax reform will help reignite the american dream. it will help bring us back to a place of confidence. a stronger, healthier economy, and this budget that the house just passed 20 minutes ago brings us closer to making that dream a reality. >> mr. speaker -- [inaudible] last night, by the way. [laughter] >> yeah. good luck with the other career. this one doesn't work out for you. >> [inaudible] [laughter] >> you have a bowl and you cut around it? >> on tax -- [inaudible] multiple investigations into

elements of the 2016 campaign and clinton foundation issues. there's been allegations -- [inaudible] what's your -- [inaudible] you had some strong words for the fbi about subpoenas relating to the dossier issue -- >> the point of these investigations is to find the truth and make sure things -- if laws were violated or mistakes made, and transparency gets you that. it is our job under article i in the constitution, the legislative branch of government, to conduct full and thorough oversight over the executive branch. that is a really important responsibility for congress. this is why we're so frustrated to have learned through the media aspects about this investigation that we've been asking for documents from the fbi for months. and so since yesterday morning, the fbi got in touch with us yesterday afternoon, and they have informed us that they will comply with our document

requests and that they will provide the documents congress has been asking for by next week, and we expect the fbi to honor that commitment. >> on tax reform, you guys did pass the final version of the budget, but four of -- [inaudible] voted against the official version -- many of them from new york. what are you doing to insure that -- [inaudible] >> well, first, look at the big step we just took today. this was an enormous step in the direction toward getting comprehensive tax reform and tax cuts for middle class families over the line in the law, done. so that is -- you okay? [laughter] so this budget that we just passed, that is really important for getting tax reform done. the ways and means committee will be putting out the specific plan very shortly, and they're going to work with all of our members to look at and consider and address their concerns. i believe that the ways and

means committee will be working with these members in particular to find a solution. >> earlier this week in an interview you wouldn't guarantee that the tax bill won't -- [inaudible] will you guarantee that it will -- [inaudible] >> the entire purpose of this tax bill is to cut middle class taxes. >> chairman brady said about the 401(k)s -- >> i'm going to leave it up to kevin brady and the ways and means committee to tell you about the details, because that's their job. they're writing the tax bill. if you have any specific or detailed questions, i'd have to refer you to the committee. i used to run the committee, i didn't want leadership doing my job, so i'm going to defer you to them. >> on principle though, do you agree with the president -- >> i agree with comprehensive tax reform and giving the ways and means committee the latitude they need to write their legislation. again, remember what we're trying to achieve here. we're trying to achieve giving people a break on their taxes, making it easier to plan and save for the future. that's the whole purpose of

this. there are many ways of accomplishing that, and the ways and means committee is working on that. >> another -- [inaudible] immigration. could you clarify what -- [inaudible] regarding -- >> yeah, i notice i was leaked incorrectly. no decision has been made about the time asking and nature of daca, how it would be structured and when it will occur. there's ongoing conversations. yeah. >> [inaudible] >> correct. ongoing conversations occurring among a all of our members about the various possibilities and how to address this situation. you know we're working on a daca solution, right? there's no secret there. so we're working on a daca solution, and as -- i'll say it again, we want to work on a daca solution in such a way that we don't have a daca problem five, ten years down the road. it's an ongoing conversation that we're having. so some selective, incorrect leaks are not a way to convey that message. we're talking with our members

about all different kinds of solutions. >> earlier this morning your office -- [inaudible] >> great economist. >> [inaudible] most people -- [inaudible] compare and contrast these two think tanks, why do you think one is -- [inaudible] >> yeah. i think without going deep into the modeling, i think having a closed economy model that disrespects or disregards mobile capital flows doesn't make a whole lot of sense. so i think there are some model flaws. i think larry and ellen who are phenomenal modelers, leaders in their field, the ak model is a model i used to work on when i was younger, i think they did a lot to poke holes in the tpc

model. that's more wonky than you want to get into. the basic is they put a bunch of assumptions in their model, made a bunch of things up that seemed to me overly partisan when, in fact, those aren't the decisions that were made. that is my fault with the tpc model. yeah. >> [inaudible] >> here's what i think about about all of this. first of all, jeff flake's a good friend of mine, and i think the world of jeff flake, and i wish him the best of luck into the future. and i think i put a statement out that more or less reflected that. think he's a very good man who help us with earmark bans, he was a voice of fiscal restraint here in the house. but i don't think the american people care about that. do you know what the american

people want to see us do? solve their problems. i don't think the american people want to see us up here yelling at each other. they want to see us fighting for them. the american people want results, and so that's what we're focused on. and i honestly believe the more unified we are in pursuing solutions that solve the american people's problems, that's what the people who sent us here to do, that's what they expect. we work for the people who elect us. those are our employers. and so if we're calling each other names or calling each other out or saying things against each other, what does that do to help a working mom get ahead? what does that do to help a veteran get the health care he deserves? to help rebuild our military so that the strongest undisputed military in the world, what does that do to advance tax reform? nothing. that is why we need to stay focused on soing people's problems -- solving people's problems and on being concerned about their issues and moving

this agenda forward. that's what our focus is totally all about. >> last question. >> mr. speaker? >> i don't do the blurt-out thing. somebody tell him about the rules later. [laughter] >> [inaudible] >> yeah. >> the 401(k) -- are you at all -- [inaudible] something about it -- >> he's doing -- going to be in asia, number one -- no, i'm kidding. that was kind of a joke. [laughter] no, i'm not, because we're working very closely with the white house on this. as you know with the big six, we work very hard on the parameters and the is design decisions on what goes into this. the tax writers are working on the actual granular details op how to make this framework work, and we're working very, very

closely with the white house so there will be no surprises from our partners, you know, in the white house or in the senate when we do this. thanks a lot, everybody. appreciate it. stuart: speaker ryan addressing the budget which passed 216-212. finish speaker ryan said it takes us one step closer to tax reform. we'll get the details on the plan maybe in about a week's time, and he said they were going to work out a solution to the difficult issues of state and local taxes, can you deduct them, and the 401(k)s, can you restrict them. the white house just are -- releasing this statement, here it is: president trump applauds congress for passing its pro-growth budget and fulfilling its obligation to the american people. this resolution sets the stage for congress to put america first by providing economic relief for the american people in the form of tax cuts and tax reform. president trump has always made cutting taxes for hard working american families, creating more

jobs for american workers and simplifying the rigged and burdensome tax code a priority, and he looks forward to further cooperation with congress to advance the administration's pro-growth and pro-jobs agenda. we just got this from congressman tom mcarthur, republican from new jersey, on why he was a no vote on the budget. he tells fox business, quote: the senate added language that put s.a.l.t., state and local taxes, on the chopping block, and we still don't have a deal. again, seven new york congressmen and four new jersey republicans were no votes because of the state and local tax issue. dan, nan, still with us -- [laughter] nan, to you first this time. now, speaker ryan says, look, we're going to work out the s.a.l.t., that state and local tax. >> right. stuart: get a solution, we're going to work out a solution, 401(k)s. in my opinion, both of them have to go.

>> well, that would certainly be my first inclination, stuart. i think the 401(k)s will be more cherished because -- stuart: yes, but they want to make changes to the 401(k)s, i say you can't do that. >> no, i agree with you. of the ones they're going to favor those two categories or provisions, they're going to cherish the 401(k) more than the suspect a.l.t., i think they'll work out a compromise on s.a. l.t. this is the challenge between what i call the statickists and the dine mists. instead of imagining as these who view a dynamic effective tax reform the fact that we will grow the economy. art laffer's right. i hope those who worry much about revenue streams will yield to the ones who favor the dynamic of relieving taxes at every level we can. stuart: okay. we shall see how this works outs, of course. dan henninger, what say you on state and local taxes and

tinkering with 401(k)s? >> i guess i i would say a coupe of things, stuart. to my mind, the best way to think about this project -- tax reform -- is that the president says over and over again he wants to achieve two things. he wants to achieve a tax cut, tax cut for the middle class, and he wants a 20% corporate tax rate. those are the two things he wants. the corporate tax rate doesn't get much attention, didn't really come up in this press conference. this is because the middle class tax cut is largely a political issue. it involves things like 401(k)s, it's very public. on the other hand, the reason for the 20% corporate tax rate is so that corporations will take some of that money, plow it back into capital investment, raise wages for everybody including the middle class. same reason you're trying to bring profits back from overseas. but to do all that, you need to sort of pay for it all, and that's why the continuing discussion of state and local

taxes, there's a lot of revenue this there to help underwrite the larger bill. stuart: one of the key players in the entire budget debate and the tax reform debate is, of course, kevin brady who chairs the house ways and means committee. our own connell mcshane has been speaking to kevin brady after the vote. come on in, connell, what did he say? >> reporter: real quick, stuart, dan henninger's making the right point, and brady's keenly aware of the issue. he told us they're working with lawmakers, meaning the leadership, to make sure -- and this is a quote from him -- that people keep more of what they earn regardless of where they live. so they know what the issue is, but they don't know what the solution to that is. you know, there's all kinds of discussions here on capitol hill about this tax, how, to dan's point, this tax bill gets paid for. brady was asked about it and was keenly aware that they've got to get a solution on that first before anything else, before 401(k)s or anything else.

that seems to be his priority. he also told us there will be a bill next week. we'll see the introduction of a bill here next week. stuart: okay. and he will be, ken brady, on this show at this time tomorrow. that will be friday about 11:45 on the show. connell, thank you very much, indeed. valiant service from dan henninger and nan haywood. thank you so much, ladies and gentlemen, for being with us on a very important day. there will be more "varney" after this. the dow's up 81. ♪

stuart: this idea came up about an hour, and it's from gary cohn, president trump's right-hand man on the economy. he is suggesting a seven-cent-per-gallon extra tax on gasoline as a way of paying for infrastructure. have i got that right? >> you have it right. the president doesn't support that though. stuart: okay. >> he's saying he's against it. how do you totally earmark it to fix roads and bridges. remember, the highway trust fund has been used for things like bicycle paths and landscaping. stuart: nan haywood, it's an easy tax to collect. it's just at the gas pump, bingo.

>> and, stuart, in a way it's very rational. that actually makes sense -- stuart: but -- >> but that kind of tax hits the middle class, hits working families, hits truckers. it's very politically unpopular for understandable reasons. but it gets at the point that, actually, rational taxation would make a lot more sense. let's take away some income taxes and allow this kind of taxation instead of having compulsory redistribution, which is what we have now. stuart: at the end of the day, you don't think it's -- >> no, sir, unfortunately. if it were combined with tax relief broadly and we're going to pay for roads separately, i could see it, but not right now. stuart okay. that's gas tax and infrastructure. now let's deal with the budget. congressman jim renacci is on the house ways and means committee. should we be worried, congressman, that this was an extremely narrow vote? >> well, i think anything, anytime, stuart, you're looking at a budget and people have to

put votes up here in washington, they're going to make decisions, and they're going to want to be accountable to the people back home. so we're looking at a senate budget that has a $1.5 trillion hole in it. that concerns some people. we're looking at a senate budget that's assuming they're going to eliminate the state and local income taxes in tax reform. there were some that said no on that. in the end, stuart, what i tell everybody, these budgets never get followed anyway. [laughter] since 1974 we haven't followed a budget. and even when we balanced the budget in the 1996s, it was just luck because we had the tech boom that just blew up the eve -- the revenue. stuart: what's the chances of saying, no, we're in the going to touch 401(k)s, no, we're not going to end the deduction for state and local taxes, no, we're not going to claw back any more money from anybody? what we're going to do is cut business taxes and personal taxes and growth will pay for it

all? any chance of that happening? >> well, i wish that was the case. i'm, actually, a supporter of that because anytime you put some of the money -- you're just pushing the burden somewhere else, again. i've said all along tax cuts shouldn't be paid for. we need to be looking at our expenses. we need to be looking at what's driving the debt which is our, you know, mandatory spending. i continue to say that all the time. until this congress or past congress or future congress start to deal with mandatory spending, we're never going to be able to balance the -- stuart: isn't it bedrock republicanism? you cut taxes, grow the economy, pays for itself. which section of the republican party is going off the base here? >> well, there are some that want everything to be deficit-neutral. i understand that. i'd like to be the one -- i'd like to see us grow the economy, get as much growth as we can and then start looking at mandatory spending cuts. stuart: sir, i'm sorry to keep interrupting you, but what's the point of tax cuts, tax reform that doesn't grow the economy?

if you claw back more money, give some here, claw it back there, you don't stimulate the economy. >> i agree with you. but, look, we do have some deductions that we immediate to look at. again, when you double the standard deduction, stuart, 95% of the people not be itemizing anyway. i realize there's some heavy states with heavy taxes, but why are those state taxes so high? we are overtaxed in this whole country, and we need to start looking at local taxes, state taxes, but the federal government shouldn't be subsidizing some of these states. so i'm a big believer let's change the standard deduction, let's eliminate some of these deductions that pick winners and lose us. and in the end, let's simplify things for the american people, lower their taxes and lower the business tax. stuart: sir, i've got about 40 seconds left. i want you to tell us what it was like on the floor of the house right towards the end as the vote was getting real close to ending the votes. was it chaos? horse trading? sausage making all over the

place? >> one thing i will tell you after being here for six and a half years, stuart, is that vote would probably not have went to the floor if there are weren't enough votes to pass it. that's only happened one time since i was here. the whip is pretty good at making sure there's enough votes, and i'm pretty sure when we walked on that floor -- although it was going to get tight -- there was enough votes to pass it. stuart: thank you so much for being on the show so frequently. we do hope that we'll just cut taxes and grow the economy to pay for it. jim renacci, everyone. good man. thanks for joining us, appreciate it. there will be more "varney" after this. alerts -- wouldn't you like one from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

fidelity. ♪ 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 . . . .

stuart: i have been with you the last three hours t has been interesting. saw the dow industrials go up 120 points.

budget vote very narrow. what have you have to say. liz: it was down to the wire. stuart: it was a horse race. that is what it as was i didn't know it would pass and didn't think it was so narrow. liz: i don't have enough metaphors. stuart: neil, its yours. neil: it's a done deal. maybe a lot closer than thought. 20 republicans not going along with this. senator marco rubio kind of expected it, but happy we passed it. >> you surprised the how close senate budget. that doesn't leave a wig fill room? >> the vote was a few minutes ago. i haven't seen the vote tally. it passed that is the good news. people say it will grow the debt. the economy will more than pay