hours, all of a sudden, just as we're finishing up, along comes the market, plunges, not plunges, down 60 points, just like that. on that basis i have to hand over to neil cavuto. neil, it's yours. neil: thanks for that. what a great passing of the baton as well. but, always food when we have these bonding moments, thank you very much, stuart. ashley: got you. neil: we'll try to understand the market, a lot of concern about the tax cut as it makes its ways through the house ways and means committee. we'll get details, where they will go over other things as well as the senate within days now looking at its own proposal tomorrow, probably. what does all of this mean, house reconciles, all issues. bo to white house budget direct to, mick mulvaney who joins us

right now, thank you. >> neil, thank you for having me as always. neil: are you surprised this is turning out to be a bigger fight than many thought? among republicans among republicans more than calculated? >> a couple different ways to answer that no. it is a tax bill. the reason it has been since 1980 since last time they're hard to do. you would expect to have a lot of disagreements on minor things. i stress that on minor things. generally speaking i think attitude is pretty positive. i don't like at it, oh, my goodness, things are worse than expected. this is what you expect dealing with a tax code as complex as ours is. good progress today. things are moving well. there is disagreements on small pieces and parts. looks like everybody is headed in same direction and that's what we need. neil: i get a sense, sir, a number of republicans are surprised to find, this is based on a lot of academic studies,

often times they're not worth paper they're printed on, all these guys have to go with, including the joint committee on taxation, 38 million americans could pay a lot more money in 2023. there are variance because of expiring tax cuts and like. it is giving a lot of republicans heebie-jeebies. what do you say to that. >> a couple of different questions, a couple different answers. a lot of proposal that the various tax groups look at, they're in place, they go away after five years or go away after seven years, whatever, that is done mostly, neil, just to shoehorn this into the crazy rules that the 1974 budget act sets up for these types of bills. it is not good policy it is something that we have to do so it will score properly. it is not what we belief. we don't think it will go away for example, but we have to

shoehorn this policy into the rules. what we're all said, i said this when i was in congress, good policy will become permanent. good policy will stay well after laid out in the original bill. if the reduction is good idea for five years, after five years the next congress will come in to make it permanent. rules will be different by then anyway. neil: depends on the congress. democratic congress. shoe sure it does. that is why people seem to get wrapped around the axle, is it permanent or temporary. nothing is permanent around here. if it is good policy, it is likely to stay. it is bad policy likely to get reversed in the future especially if a different party takes over. i'm not too concerned looking at those particular numbers. this is how we look at it at the end. to your original point, are you worried about the fact that according to some groups, taxes might be raised on some groups. no, if that turns out to be case, if we really believe it, our numbers show the same thing, taxes are going up on the middle

class, we're not going to sign it. that is an easy answer for us to give here at white house. our principles are the same. lower tax notice middle class. simpler and fair in the middle class and lower corporate tax rate. neil: you would even say, director, passes house and senate and some make the case it raises tax on the middle class the president wouldn't and shouldn't sign it? >> your caveat some people will say. neil: what if it is the joint economic committee says that. >> our own numbers we'll not sign something that will raise taxes, end of story. neil: do you know some of the things including this bubble rate of 45.6% for those between 1.2 and 1.6 million? i know this can overly get picked apart. >> sure. neil: was he surprised by that i said wait a minute i have a problem with that. >> surprise is the not right word. neil: stunned, chagrined,

disappointed? this is -- >> this is going per plan. middle class taxes gets treated like this, corporate taxes get treated like that. we left it to the house and senate to fill in the details. we work with them every single day and we're cooperating with them. we didn't get into the details. we didn't write legislation. that is congress's deal. they wanted that authority. they got that authority constitutionally. we'll see what they come up with. we're helping where we can. we're pushing where we can. i'm not going to give an opinion what the final bill will look like. we're a long way being finished. neil: you're right about that. senate finance committee will separately come up with the own plan and reconcile those differences. do you know at this point, director, whether there will be a dramatic difference between what house ways and means come up with? >> i actually, i get the gut, neil, that there will be not tramatic differences. that is why the framework we put

out, a list of major principles that everybody agreed on. that was the house republican leadership, senate republican leadership. the white house. the fact we hammered out those big issues before that legislative process started is really what gives me that confidence to say there are disagreements between the house and senate, not on the big stuff. the vat, for example, is fon. corporate rate is 20%. those big set pieces are established. you have disagreements on smaller stuff. sphene i think the basic principles are set. neil: you know, people have gone back and forth on this and timing of votes, everything else, and i think you were quoted recently, sir, i hope i got it right, you were not confident there would be democratic votes despite overtures to democrats make this less after rich tax cut. they still argue it's a benefit to the rich. >> yeah. neil: so do you think that your colleagues, at least your old friends in the house, did a lot

to win over and impress democrats for nothing? >> i'm not sure that quote, that you just gave from me sounds like it was partially correct. what i think i said a couple times, then tommed up, and say if they know it is going to pass, some of them, many of them may end up voting for it. i spent more talking about that in the senate than the house. i think same principle applies. democrats are simply not a police politically in this environment to get us across the finish line. if we get it without their support, a bunch of democrats will think this is good policy especially in the senate. i have not given up. neil: that is more senate issue to be clear than the house issue? >> we look at it, margins are tighter in the senate than the house. neil: are you surprised, you probably still are a big deficit hawk, your day notice house, everything was fair game for to you go after and the rap against this tax cut, as you know, given some of the rules in place going back to the '70s, bird rule,

all that, making the numbers add up and balance out, it limits what you can do on tax cuts period. and in the end, everyone seems to be disappointed. those who want a big tax cut, they get disappointed. people want control over the deficit like john mccain, they get disappointed. was it worth it? >> absolutely worth it. because i still am a big deficit hawk. in fact that is why i'm spending so much time on this tax bill. encouraging congress to pass it. because, the deficit equation is pretty simple. neil, it is revenue minus expenses. when expenses are bigger than revenues, you end up with a deficit. that is a two variable equation. neil: won't stop the deficit with this one, minimum one 1/2 trillion more, right? >> we, i don't think that trillion 1/2 number is right. i think even senator corker, another big deficit hawk, that trillion 1/2 dollar number is just, it's a smoke and mirrors number. but the bottom line here, there are two moving thesis, spending

and revenues. we tried hard in the administration to draw attention to spending. house and senate in their wisdom chose not to take most of our spending reductions that leaves us focusing on revenue side. we need to grow the economy. make the middle class richer, the poor richer and government is richer to drive up revenues. that is why i'm so focused on taxes because i need the growth to help reduce the deficit. >> the timetable they have as you know is to try to get this out of the house by thanksgiving. the senate and signed by the president, still doable? >> yeah. senator mcconnell was threatening to bring senators back the day after thanksgiving. i will buy your turkey if that happens. the house accepted the senate version of the budget without any amendments, that actually saved us between 10 and 12 days, depending how you want to count. so that help ad lot.

i think we're still oinked all for the house to vote on thanksgiving. senate vote after that. allows the conference committees to work out the differences before christmas. neil: maybe they don't need a lobby to whine on their behalf or cry on their behalf, top 1%, the very rich, they are ticked off. they feel they have been loyal supporters of president and his policies and republicans in general, they feel they got the shaft on this thing. what do you say? >> i guess it depends. here is what i tell folks, when i go on your network, foals accuse me of raising taxes on the rich or us in our proposal. i go on other networks, just about any other network they accuse us of cutting taxes dramatically on the rich. sounds like we're right in the center. in fairness, more seriously you can't really give an opinion on a specific impact on a specific taxpayer until you see a final version of the bill. neil: true. >> what is important for the president, again i hate to

repeat myself but that is the business we're in, the president's fundamental principles here were middle class pays less. simpler for them and fair and corporations get down to that 20% rate. that is what we focus on. the rest of the stuff is up to the house and senate. neil: sir, always a pleasure. thank you very much. mick mulvaney, white house office of management budget director. good to see you again. >> thanks, neil. neil: reaction on all of this with our charlie gasparino. i talked about the groups that say the add doesn't add up, gray poupon crowd, all your friend. not fair to them. >> pete king is big on grey poupon i heard. neil: right. what do you make of this, where it is going, what are you hearing? >> here is a gray poupon moment here. the club for growth calls for major changes in the tax bill. they point out a number of things. a millionaires tax which is pure redistribution of wealth. the 45.6% bubble phantom tax increase. by the way that's in there. that means you get taxed not at

the lower level on the niche pay but at the 39.5% level, if you make a certain amount of money. pass-throughs is pretty lousy. they didn't get full tax cut for small businesses there. is some formula in there that you and i talked about, only 30% of the income of pass-throughs get, get the full benefit of a tax cut. and apparently the death tax is still hiding in here somewhere according to the club for growth. i will say this, neil. i like mick mulvaney a lot. he is is a smart guy. neil: very smart. >> i know his heart is in the right place but ultimately a politician and here is what he said that was very political and very interesting. said it three times to you. that is why it was illuminating interview. our basic thing, approach we let congress handle details which i think is a mistake by the way. reagan didn't exactly do that we had principles. one was a middle class tax cut. and one was to bring the corporate rate down. now let's be real clear here. middle class people, generally

the vast middle class makes between 30 and i guess $80,000 a year, do not pay a lot of federal income taxes. that is the bottom line. so you are giving a tax cut to people in those brackets that don't pay a lot of taxes. here is something else. middle class is defined, sort of broadly here, with a sweep. if you make $200,000 on long island, with a family of five, if you're in pete king's district, not exactly the silver spoon set, guess what? you're middle class, you're getting screwed on a lot of this stuff because your state and local tax deduction -- neil: they have to prove to those guys, yeah, but your constituents are going to get more with the higher deduction, double all that. >> absolutely. neil: that is the -- >> here is the other rub. who pays most of federal income taxes? if you're foal is to stimulate the economy, you have to give

tax cuts, you can't raise taxes on rich people because they will not stimulate the economy. neil: right. >> on the corporate side, it is pretty obvious what they're doing is tax reform. cutting it from 35% on the corporate side to 20 which sounds great, eliminating loopholes. they are not doing that on the individual side. why a lot of republican congressman, i heard darrell issa, latest republican congressman from california say he will not support this. pete king will not. it will be a tough go in the senate. we heard from some senators it is doa. the bottom line the administration and congress hasn't, hasn't proven their case this is pro-growth tax policy it is interesting. they have republicans and conservatives coming out against this. it is very fascinating. neil: it's a long way to go but i knew you were disappointed when i saw you eating at a burger king. >> right. i'm saving my money. now you have to buy your pumpkin spice lattes not at expensive place like starbucks, you have to go to dairy queen or something, right?

neil: nothing wrong with that. >> you go to mcdonald's for pumpkin spice lattes dirt cheap. neil: at least 10% less. >> can bank some of that money. neil. or your tax increases. neil: there you go, charlie. president making a big push for ed gillespie in virginia, not in the way you think. i think he visited the state 15 times to golf since he became president, but not once at an event for mr. gillespie. but mr. gillespie is getting best of both worlds here. i will explain after this. ♪

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neil: never mind he is halfway across the planet right now, the

president doing his best to make sure republican virginia gubernatorial candidate ed gillespie gets over finish line with a win. its close there. adam shapiro in virginia, with the latest. reporter: hey, neil, we're in the lunch rush for voting in virginia. let me read you some president trump put out on behalf of mr. gillespie. ed gillespie will turn around the crime and performance in virginia. ms-13 and crime will be gone and vote today. he went on to say ralph northam will allow crime to be rampant in virginia, i is weak on crime and our vets. and at this second amendment. he has been horrible on virginia economy. vote ed gillespie today. not to be outdone, doesn't forget former president barack obama actually campaigned for mr. northam, he said in mid-october, we need to take this seriously. our democracy is at stake. electronics matter. elections matter.

instead of politics reflecting our value. we have politics infecting our communities. bottom line the voters of virginia make the decision themselves is. that would be two voters, ed gillespie and ralph northam. they have voted at this point. we're told by poll workers in part of virginia we're at, voter turnout is heavy. neil? neil: thank you, adam. that race could be a litmus test for the president of the united states. sometimes they are deemed to be that way. no republican won statewide office in virginia going back bo bob mack donnell 2009. republican congressman scott taylor on that. one way or the other, congressman, is this sort of a test for donald trump. >> good afternoon, neil. good to be with you. sure, this is the first statewide referendum on president, here in virginia and and this one getting most attention. the president is tweeting about it. it is important we elect

ed gillespie in virginia. i think it's a test. there are national implications on both sides of the aisle, democrat or republican. why they are very much watching this race. neil: much has been paid of the fact mr. gillespie, one reason or another has not opted to have the president campaign on his behalf. he welcomes any and all supportive tweets and the like but as many times as the president has golfed in the state, i believe 15 times at his course there, he has not been at a gillespie event. what do you make of that? >> i'm certainly not privy to the internal communications between the gillespie camp and president. i do know that the vice president came out for him. we had a huge event for gillespie in virginia beach that had tons of excitement. i know the president is supportive. i can't tell you why he has or has not been in virginia. i know he is supportive and getting help from a lot of folks across the country. neil: watches made of the election back in 2009 where bob mcdonnell won, that was the same year chris christie won in

new jersey. is sure enough in 2010 we had republicans take over the house and much is thought about how these type of elections telegraph what is to come a year later. do you buy that? >> not necessarily. i mean what is interesting here, is you know, you had headwinds against ed gillespie initially, who worked tirelessly. president lost virginia. hillary clinton did win virginia. the democrats thought that ralph would take it away pretty easily but as he had worked really hard across the state. he is confident. i texted him earlier. it will be a tight race. might be a long night tonight. one of the things united republicans that nasty racist ad sent out. that is despicable. that united all factions of the republican party. i think we're in for a long night you're referring to latino victory funded a, a pro-northam group depicting gill lesspy

supporters chasing down -- >> it ticked off a lot of people in virginia. it was nasty. neil: one of the factors ney rowing this gap in the race here, if even with all of that gillespie still loses and democrat picks up the gubernatorial election in new jersey, would you be worried? >> for the future? no, not necessarily. all the headwinds were against ed. the democrats thought they would blow him out of the water. that has not happened. it is very clear you have a tight race. ed has a lot of momentum past couple weeks, exactly what you need going into the election. i'm not worried. if, i'm hopeful and i think that ed will win. that would be great for republicans of course. if he does win, it will be very bad for democrats. neil: while i have you here, congressman, how are you on this tax cut, what you heard thus far? for it, concerns about it? >> i have a few detailed, small detailed concerns, but in general, of course the framework, look at repatriation

of money, corporate tax competitiveness and reducing that rate, looking to help working families, those are fundamental things to me that have to happen. i think, a lot of folks are really getting wrapped around the axle, which is tradition on every detail at this moment as you know, neil, there is lot more work to be done. we don't have the complete bill for us in the house very soon it will go to the senate and conference. there is a lot more work to be done. think we're heading into the correct direction. neil: thank you. house appropriations committee member among much more. meantime, a big election night. two big elections. new york city, mayoral battle here. a couple of states that could perform the trifecta for democrats, giving them control of both branches of government in their respecttive states as well as well as governorship, something they have not seen in better part of to -- 20 years.

we'll follow it every step of the way beginning 8:00 p.m. on fox business, as long as it takes, we got you covered. we'll have more after this. we give you research and data-visualization tools to help identify potential opportunities. so, you can do it this way... or get everything you need to help capture investment ideas and make smarter trading decisions with fidelity for just $4.95 per online u.s. equity trade. fidelity. open an account today. ♪

>> i really believe that it makes sense for north korea to come to the table and to make a deal that's good for the people of north korea and the people of the world. i do see certain movement, yes, but let's see what happens. neil: all right. what could the president mean? speaking in seoul, south korea, where he is optimistic a deal still could be had with the north koreans. former national security council staffer gillian turner. gillian what is seeing here? >> he is expressing at least more open today than he was a few weeks ago, to the idea of sitting down and having formal negotiations with the north korean regime. who else is at the able remains

to be seen. prommably, some of our, allies, south korea and japan, presumably some of our european allies. by the way, neil, this kind of doing a deal with north korea some idea that the germany, uk, france, have been pestering the president in his ear about past couple months. i don't know if they're making headway or being around asian leaders is making headway, but clearly people are moving him in this direction. i think it's a good thing. neil: is it a ofpivot? not that it should matter one way or the other, but talking to people in the neighborhood, who are in the sphere of danger here would have more after urgent, immediate need to get this addressed without all the bellicose talk, what do you think? >> i view the whole asian tour he is undertaking now, five countries in 12 days as his kind of rejiggering of president

obama's pivot to asia. kind of pivot to asia 2.0 for lack of a better, more sophisticated way of laying it out for you. president trump is trying to say, look, for the first six months, nine months, of my administration i've been wildly focused on the middle east. i recognize in the wakes of provocations from north korea on the nuclear issue, in the wake of financial developments and with china and japan and others i have to really focus more time, my administration has to focus more time and attention here and we're kicking it off now. neil: do you read anything into the fact that some of these leaders who he has been chatting, including prime minister abe of japan, are kind of saying, bully, explore the diplomatic element before you say anything else, because the next step, is we beef up our defenses? japan no stranger wanting to do that. the president no stranger wanting to accommodate that.

they're at the point saying this is our last shot at this? >> i don't know it is our last shot but when you're dealing with an adversary, a nuclear-capable adversary it is sort of like you're always on the brink, precipice after complete crisis, a complete meltdown but we've sort of been there a few times in recent months and the president and the administration always walk us back from the edge. so i don't know that this brings, this moment brings anything new to the for he, but their policy from perspective remained consistent t has been diplomacy, front and center. we hit the gas pedal as hard as we can on it, but we maintain the credible military threat as well. i don't think the president's changed on that. his rhetoric has been spicy and fiery at times but i think that has been the goal, the parameters. neil: all right. thank you very, very much, gillian. very good catching up with you. gillian turner on that.

by the way we're monitoring, we won't take you to it right now, officials in texas are giving an update what little they learned about devin kel kelley. the air force admitted fault reporting the shooter's past crimes and cases of domestic violence, why that wasn't broadcast to any officials outside the military. we'll keep you posted after this.

you can't predict the market. but through good times and bad... ...at t. rowe price... ...we've helped our investors stay confident for over 75 years. call us or your advisor. t. rowe price. invest with confidence. neil: you know this thing with rand paul, it is looking pretty serious here. five ribs broken. very long recovery time after an assault, at a time a lot of people are questioning, are we doing enough to protect our top elected officials? lauren simonetti, with very latest and how all this could factor out in washington. reporter: that is a good question, neil. are we doing enough to protect our elected officials. you heard what happened to

senator rand paul. after his neighbor allegedly attacked him on friday, his chief political strategist saying these injuries are worse than they thought. could potentially be, neil, months before he can return to work. and obviously he is in pain. that makes travel pretty difficult. can he get to washington, d.c.? let me tell you, he is needed, the white house is aiming for major legislative win on tax reform. this is where it gets tricky. senator rand paul, not too long ago, he voted against the senate budget plan last week. he is a fiscal conservative, right? he is not for anything that will increase the federal deficit but that does not mean he is a no on tax reform. listen to what he tweeted. this was back on friday, right before the attack. he said, let's do this, donald trump, and pass the biggest, boldest tax cut possible. now of course, the senate is expected to take up the house gop bill on tax reform later this week. we don't know where rand paul

stands, if he can get there to voice his concerns, but we do know that they have a slim majority, trying to pass this without any democratic votes. which means republicans can not lose more than two votes, neil. neil: if he is not there, they're down three technically in the worst case scenario, would prevent the whole tax cut thing happening thank you, very much, lauren. neil: treasury secretary steve mnuchin is saying that congress is close to working on this carried interest loophole. gerri willis is here. why is this such a big deal? reporter: white house is squaring off the obscure carried interest. that allows managers to pay traumatically pay a lower portion of their tax on income. in interview with tucker carlson, treasury secretary steve mnuchin says the white house will push to close that loophole. now, the provision, as it is currently, allows returns from a private investment fund to pass

through to the general partner, who then passes it on to investment managers. the managers pay a federal personal income tax on these gains of 23.8%. that is a 20% capital gains rate, plus 3.8% investment tax. they say this is fair because they operate more like entrepreneurs than employees. critics say the returns should be taxed as wage and salary income would be 39.6% and 3.8% investment tax, 43.4%. that is difference nearly 20%. 19.6%. yesterday the committee put forward an amendment that would raise to three years holding period required to get the favorable tax treatment. currently that holding period is one year for short-term capital gains. the provision is a boon to many billionaires and warren buffett and steve schwarzman. you're seeing here on your screen. neil, back to you. neil: all right. a lot of them like that. thank you very, very much,

gerri. meanwhile new information about apple, may be a classic case of do as we say, not necessarily as we do. deirdre bolton on a dash for not paying tax cash? reporter: you have to go to the aisle of jersey. so the other jersey. neil: the other jersey. reporter: which is a uk-crown depend den sir, essentially charges, dependency, 0% tax for foreign entities. apple was coming under watch the investigators and critics. hey, you're not paying your fair share. you have a lot of money in dublin, ireland, at the time. you're only paying 13 1/2% tax on that. so apple very quietly moved part of it is $250 billion overseas cash hoard, a little bit more than that, part of this to this channel island call jersey. apple claims it is still the largest taxpayer in the world as far as corporations go. it has paid 30 billion over the

past three years, but it gets to the idea of tax avoidance, which is legal versus tax evasion. but it seems that net-net, apple since about 2017 has paid 3.7% corporate tax. we have been talking about the taxes here in this country, which are 35%. even in ireland, 12 1/2%. so apple is saving some serious cash. now unfortunately for their communications people we have these paradise papers, which is one of the biggest releases, hacks, we have to call the information stolen from the law firm that manages a lot of these companies money. apple is one. nike is another, as far as big name corporations. we talked about rock stars and royalty. queen elizabeth, bono. neil: governments including britain and france, they're complain about it, that is money denied them. >> they sure are. neil: that is not just a u.s. phenomenon, right? >> that is where some other eu members started to get cranky with ireland, of course u.s.

companies will flock to you, our only making them pay 12 1/2%. as far as the eu dues go, that is not exactly how we understood the whole subsidies and sharing economy in the european union to go. neil: here is what is little galling about it, not to overly politicize it, since tim cook, products, i love apple products, apple shareholder for many, many years, disclose that if you to out the way to say our government must not be denied and we have to look after the poorest among that, inherently is paying for it. reporter: hypocrisy is heavy. neil: you're doing the darnedest to avoid it, corporate sense may be, legal it may be it rings hollow here. reporter: it is extremely bad for a company pr that wants you to have the warm fuzzies. if you look from capitalistic standpoint, a lot of companies say, if this is legal, why should i pay more just for

kicks? if you look at the $30 billion worth of corporate taxes apple says it has paid in three years, maybe apple feels, okay 30 billion is enough. neil: another argument fires me up, the all alternative you pay more for products of the latest iphone x did $1,000. reporter: the fact apple hates this, we're having the conversation. this is a pr nightmare, even in these documents stolen from the overseas law firm, apple was sworn to secrecy. neil: a host of others, and it's a host of others. reporter: they're not alone. we don't mean to point the finger of the they're the biggest. they have been doing it among the longest, at least since before 2013. so they have a lot of darting eyesics maybe to show, my geographical ignorance, i thought they were hiding money in jersey, really, jersey? that is novel strategy.

apparently the island of jersey. reporter: with the good cows. neil: thank you very, very much. we're getting update on the on going police presser on the texas shooting. they do not believe the shooter was religiously motivated. they're linking to him potentially other crimes might have been committed which local officials were not briefed. stop me if i heard this before, 9/11 or some other horrendous acts various agencies were not always communicating. in the case of devin kelley, the shooter who killed 26 and wounded 20 others in texas, you know, discharged from the service, you know, gets into a great deal of trouble where they take away all benefits, everything having to relate to his service, and none of that is communicated to local officials that he is a violent threat, something that got in way of getting a gun permit but stopped him eventually getting a gun.

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neil: you know saudi arabia, this is getting to be a big story right now, where a number of sheikhs are being held up in glorified prisons with places like the ritz-carlton here, a power grab by the existing prince to sort of corral that

power. following a anti-corruption purge, that could take in still others. at same time, we're seeing another number of governments targeted by the saudis ripe for iranian influence. maybe worse, potential budding incursion or war in the middle east. oil prices may surge out after two-year high. tom kloza is with us. how bad is this? something is kicking up prices. what is it? >> i think it is about less any kind of real tightness in oil, more about not currently safe to sell. and that should pass, very, very quickly. the noise between the saudis and iran is probably the most formidable obstacle to high prices now, but, i would submit to you, that prices are a bit unmoored. that $64 for brent and $67 for wti, represent the height what

we might see in the next 10 months as opposed to a midpoint or a low point. neil: really? you know, that might be so, but there is always intrigue about exactly what the saudi prince mohammed bin salman will be doing here and why he is locking up, if you call it, holding up some of your rivals in at the ritz-carlton locking up, but where is this going? and how far does this go? >> will, i don't think it changes the plans for what they call vision 2030, for the saudis to diversify their economy. move into solar. move into other things. become less dependent on oil. now that said, opec put out a prognostication today for 2017 through 2040. they see oil demand going to something like 111 million barrels a day by 2040, as opposed to about 97 or thereabouts these days. neil: all right. so if the demand picture in

future years picks up, or we're getting a sense that other countries participate in the improving global economy, play that out for me. what are we looking at? >> well, i think everybody's blue skying it right now. i think they're blue skying it in terms of gdp, that world gdp will average 3 1/2%, whatever for the next 20 years. neil: that would be a very big leap. >> blue skying it. i think they're blue skying in terms of demand. there will be intrusion by electric. i think they're blue skying it in terms of whether, what americans will put up with. i mean, shale, at $55 and higher, doesn't lead to sort of creep. it leads to explosive gains. so, do the saudis want to sort of open the door for tremendous amounts of shale? we're already exporting in some cases as much as maybe all but four or five opec members. now it would only go higher if they do support prices above $60

a barrel globally. neil: what if this power coup, whatever you want to describe it as, i don't want to overstate it, of mohamed prince bin salman, results in more arrests, even more domestic uproar, violence even? he is already, all but declared war or thinks that lebanon declared war on him. we've seen a lot of iranian agitation here. all bets are off in environment like that, aren't they? >> yeah i think they are. but that has always been in the case in the middle east. my career is 40 years. there is always the threat of the strait of hormuz shut down and war in the middle east. we've seen a couple of them. i don't think we're on the verge of this right now. i think what we're seeing is noisier and less predictable saudi arabia, but they still will be sending the majority of their crude offshore, probably to pacific and asian markets. and in the meantime, they are

handing west texas, new mexico, colorado, oklahoma, and north dakota, a license to really, really bring back a lot of the drilled but uncompleted wells. neil: bears watching to your point. tom, thank you very, very much. good seeing you. >> thanks, neil. neil: a couple other developments we're watching, the dow is down 38 points. the house is under debate and so is the senate finance committee. we don't have a exact timetable when it releases its plan. closely mirror housewares and means. we do know the two plans potentially could be miles apart. how they reconcile those differences, allowances, tax breaks, all the way up to the upper income, anyone's guess. they are working under aggressive timetable the budget director says optimistically placed like this. movement out of the house, passage by thanksgiving. moved and signed by the

president of the united states by christmas. we'll see. ..

neil: all right, senate policy lockup under way. the senate finance committee tentatively is going to release its tax plan detailing what it wants to do versus what the house ways and means committee want to do. there could be big differences there. there might not be. blake burman with the latest.

>> hi there, neil. we believe on thursday, also the day in which the house ways and means committee potentially expected to wrap up its markup process on capitol hill, which is actually undergoing right now, you mention the differences, one of the questions outstanding as what might the senate do if anything with the repeal of the obamacare original mandate come it doesn't appear the house is going to touch that. a source close tells fox there's pressure put on the senate to include the repeal of the individual mandate. republicans believe this could free up $400 billion or so of revenue over the next 10 years. i'm told the number might be as low as 300 billion either way and a staggering number to begin with. earlier, ted cruz, senator from texas sharply criticized part of the house bill and with that pushed for a repeal of the individual mandate. listen to cruise him earlier today. >> the business side is terrific, but there are some tax

mayors who are losing exemption, particularly in high tax states like new york or california that could conceivably be paying higher taxes. i think that is a mistake. i think tax reform needs to cut taxes for everybody. >> capitol hill is the debate back and forth both literally right now within the house ways and means committee, but also all of the pressure swirling around for republicans to get this down. congressman chris collins said today essentially his donors have told him, get a bill produced where the money will dry up and for example club for growth in influential republican group in washington today saying they do not like part of the individual side of this house bill. neil. >> way, thank you very much. blake is right on that. i am wrong. tomorrow is not thursday. thursday is the day the senate finance committee will release its plan, not tomorrow. mick mulvaney, budget director

pushing the tax bill for the middle class are biased. what do you say? if that turns out to be the case, and if our numbers show the same thing, taxes going up in the middle class, we are not going to sign it. that's an easy answer at the white house. neil: kentucky republican congressmen, tom nancy, good to have you. do you think in the end if it went through all the hurdles to get approval in the house and approval in the senate and it's still possible that in the final package production you will have some pay more that the president would not sign it? >> the president will sign it. i think there's good communication between the white house and what's going on in the ways and means committee. the president wants to win. we want to win. this is a new experience for me. i didn't vote for the health bill in the budget but i will vote for this. and literally the most skeptic

on the hill. neil: you've heard that people have said for companies all the cut from 35% to 20% is a big deal. it's an historic achievement if it comes to bear. on individuals, not so much. is that your assessment? >> i looked at the joint committee scoring of this bill. it looks like cap tax cuts are going to individuals and half of them going to corporations. the biggest effect is going to be the cuts to the corporate tax rate. when somebody looks at their paycheck, what they care about is how much they take home. they will see more take-home pay because of their personal income tax cut, but they will see even more due to that 20% corporate rate. neil: how do you know the companies don't take that and put that back into what they're free to do and they don't put equipment or help out their workers? >> well, we feel confident they will not take it overseas because that's one of the things

the bill does by making us more competitive. neil: that does not magically translating to workers in a fitting mess. >> i don't see them reporting the cash. they are competing with each other. they've got to expand the capital or somebody will and that's the way capitalism works here to spend the money come invest it and get ahead of your competitors. it doesn't behoove them to sit on the cash. it's going to go right back into the economy. neil: you might be right. there's so much we don't know. we do know from prior experiences, a lot of those companies plowed back into their stock again. as i expressed they are free to do that. hope springs eternal this time they will. is it your sense that the rich who are already bellyaching about not being included in this tax-cut parade, but furthermore paying more time you hear about the bubble tax that brings up the 45.6 and others who lose their write-offs and the benefit

they get for home-equity loans and the like, but they are going to pay substantially more? >> you know, over 90% will see a tax cut and that is every quartile of the tax bracket. the bubble tax people are talking about, if you make between a million and 1.2 million, the 200,000 will get taxed an extra 6%. even so, those people are going to see lower tax bills than they thought under the other regime because they are paid lower tax rates all the way up to a million. when they had the bubble it's still not going to increase liability to a level more than what they have otherwise. neil: do you think on the medical expense factor that so many middle-class, who have some amount of medical expenses, that even with deadly mayors dinner deductions, for some of those folks, including those who have

loved ones in nursing homes, doesn't come close to adjusting for that. are they just those few in your eyes that are not going to benefit where these numbers may be greater than you fear? >> well, it applies to a very small number of people. you've always had to have more than 10% of your income being spent on the health costs. that applies to very few people. very few people are able to take that deduction. when you get rid of all these deductions, it simplifies the tax code, but there are going to be a few people, who, you know, were benefiting from the old tax code were benefiting under the new tax code. i would like to see its got enough taxes so that everybody benefits. ted cruz in a prior segment talk about that. i do want to give more deductions. i do want to maintain those deductions. i would get rid of every deduction out there and not the

problem you get into. neil: make a clean and simple. you might be right. thank you very much. >> thank you, neil. neil: to the congressmen's point, he thinks more will benefit do will benefit than not. former investment banker, scott hodge, welcome to both of you. scott, do you get a sense that the rich will have to deal with this, that some of them who were already be on the 3926% bracket if you include medicare and related piece and surtax is attached to the affordable care act will pay still higher under this, but in the end deal, what do you think? >> the president made it clear he did not want to give tax cuts to the rich and that's exactly what the ways and means committee is trying to do. you have to remember the tax code already faces out a whole lot of things for the wealthy,

child tax credits, education credits, various itemized deductions are all phased out. your personal exemption is all phased out. there's already a large part of the tax system not available to the rich to begin with. the bubble is not good tax policy, but it's consistent with other things we do to make the tax code even more progressive and not just the way has to be i guess. neil: we don't know when we hope rand paul recovers quickly from this bizarre incident. i hope he does. he was before any of this expressing concern about some in the middle-class particularly not just the upper income paying more that he couldn't vote for that. depending on who you talk to and economic committee work that seems to crunch numbers and concluded money would fall in that area, those tween 20 in as high as 40 plus thousand, what do you make of that and how much of a deal potential breaker this could be? >> i certainly hope it is a dealbreaker because i think the

entire bill is a wolf in sheep's clothing. there is going to be a tremendous number of people who end up paying more taxes from the middle class from the upper income bracket and also small business owners. we are getting this advertisement, small business owners get a break at 25%, but there's a big asterisk that if your customer service provider that doesn't count. we have millions and millions of vocational service providers that are ending up not only not getting the break, but they are going to lose the mortgage deductions, not going to be able to deduct state and local taxes, so this is something 15,000 big corporations, but the 28 million small businesses in the country as well as part of the middle class and income payers, and this is a tax increase. neil: you don't buy the argument that something is better than nothing. this is not like that? >> this is not. if you want to lower the corporate income tax, do that on

a stand-alone basis, but don't mess it up for everybody else at the same time. it's just not good policy and certainly not a progrowth policy. that's the entire point we are trying to have as a result of this policy is that it enacts growth and if you have half of the employers and half of the sales and small business owners not benefiting, guess what, that is not going to benefit for growth. neil: there might be something to what carol says because when "the wall street journal" starts bemoaning the fact that this is not all it's cracked up to be, that is not a good sign for the bastion of capitalism all the sudden saying this a fair come in to say it right, paper it's written on. >> the plan has many, many faults, reflects all the compromises and all the trade-offs that have to be made considering the budget constraints, political constraints and the rhetoric that was used before hand, promising tax cuts for the

middle class, but not cutting the rich, providing benefits to small businesses. neil: but do you think scott, republicans went too gun shy with this? i know what it takes to get with reconciliation, but in the process, what they came up with was like this. what do you think? >> i'm actually not surprised. this is all kind of what you expect. we do find however that it is progrowth, that would let the size of the economy by 4%, create a million new jobs. neil: i doubt that. i might pan out, i just don't know whether this would do that. >> absolutely wouldn't. they've done things like saying if you are privately equity for hedge fund we will keep the carried interest to you can benefit from the investment you've made in your business. if you're an accountant or dog walker, you can't. i is that good for the economy?

why should they get a break? because they employ half the people in this country. neil: i didn't know that. >> they are making investments in their business. no guaranteed minimum wage and they are the backbone of the u.s. and the global economy. neil: i want to thank you both very much. both sides of the senate and the house on thursday will give us their plans and may be a better idea. in the meantime, to the meantime, to the extent that the gubernatorial elections. they always are the opposites, virginia, new jersey. they gubernatorial elections. the new jersey one we are told is a blowout for the democrats, so they say. i remember eight years ago they thought jordan corzine was off the election. didn't turn out that way. what could happen after this.

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neil: two states, virginia and new jersey have been gubernatorial elections. the scene with governor chris christie bodine. connell mcshane now in middletown, new jersey and the latest on what is in at stake in that race. the mikey's term limited as you know. even with that, chris christie in some ways is at stake in this race. his lieutenant governor running on the republican side and she voted a little earlier today not far from here early in the campaign should really try to make this about the issues you would think. lower property taxes were very big, but if the campaign got in its late stages she started going negative against her

opponent in immigration came up one more. she went after him for a comment saying he wanted to turn new jersey into a sanctuary state. as for murphy, he voted to red bank area where we are today a short time ago and on his way out after he voted i had a chance to ask him if he thinks this race as a referendum on anyone or anything. here is what he said. >> is a referendum on the economy. this is an economy that is not strong, not fair. doesn't work for enough people. that's what this is about. n]connell: making the economy, at least in his words more fair. he said a short press availability trying to close things out. what he didn't say if this clearly is a referendum as we mentioned earlier in governor

chris t., trying to make as much throughout this campaign and unpopular governor and trying to make the race about christie, his sitting lieutenant governor. at the end of that, it comes down to turnout. four years ago 30% turnout was at an all-time low in the governor's race. this time they were expecting 38, so this could be the lowest turnout we've ever seen in new jersey. just speaking to one of the election officials and she told me that turnout here has been steady. it's early. back to you. neil: calm all, thank you very much. the new wall street urinal poll shows that problems for republican candidates in general and donald trump is losing support that he wanted 2016. those include counties in new jersey and in virginia. real clear politics keeling julie burns, nick poured. what does that tell you? not an exact science. not as if it is dipping a little

bit. >> their several ways you can look at this. i'll look at it from a money point, but there is also from a strategy point when you have a candidate, what do you do with the trump effect? you know, he's not polling well in a lot of the states, so what do you do? how do you navigate around that? is that the obama effect when democrats are saying i like the democratic party, but i don't like him. it is very tricky. i'm handling, doing fundraising for nicole malley attacked it and it was a very slippery -- it was a very slippery slope because one of the rings, she was attacking him and attacking him on his record and it was looking bad. for his point of attack, you don't want four more years -- you don't want trump in our city, basically -- you see what i'm saying?

a lot of you new yorkers in the city were not very thrilled with donald trump, so what he does is try to paint her as a mini donald trump. neil: that seems to be the same thing linking chris d., trump together, which is just a strategy. where do you see all this playing out? tuesday the donald trump, virginia and new jersey the president lost or were not even going to get into new york city, but would you make of that? >> to your point, this is why all eyes are on virginia because of that glaspie who who was a traditional establishment republican. if he's able to win, lot of republicans using the playbook that he used in a congressional race across the country. so what -- exactly. he's not endeared himself to trump, but his captain had enough distance or he has tapped into a lot of cultural and economic anxieties and trump

supporters and republicans have felt in the state and elsewhere, while also trying to appeal to northern virginia, which are more in the mold of republican leadership types of folks, the more traditional economic tax policy. neil: virginia has increasingly gone democratic. go into the changing nature of the far faster growing fairfax county. >> a lot of the votes are collected in the northern virginia area, suburbs of d.c. what is interesting about what 2016 dead which were signaled they were both elsewhere if you just energize those supporters. we single sp tried to do that. neil: they are more passionate about coming out. democratic voters presumably are engaged now i want to come out. how do you see it playing out? >> a lot of times we talk about the reign of fact, when it rains the republican base is so fired

up and so enthusiastic that they will vote no matter what the weather is. i voted this morning very early in the same place chris christie wrote. he had more people when i got there. i was their only customer. i'm just making a point here. we were all talking about this before the show. anyway, in new jersey, we are talking about how chris christie, do you remember when he was a rising star, he was the republican governors association i remember having --

neil: four years ago in the election. >> -- featuring him. and now he's so unpopular with everything that's gone on from hurricane sandy with a hug from obama to the bridge gave. neil: there were no camera crews there for me. let me ask you about these races and what is at stake. i know eight years ago when christie was first elect ed and that was the same year by the donald one in virginia. some use that to interpret what would have been the very next year in the midterm elections that trump is the republican victor. is it a hard and fast rule? >> no, there's not. traditionally virginia as a bellwether in certain ways. virginia tends to vote the opposite party, but the following year it's an imperfect model. the year that bothered, one,

republicans ended up taking the house the next year. but if you look up later down the road, mcauliffe one and republicans to the senate. so it's an imperfect model, but i do think it matters more so this year than others because people have been trying to figure out how to navigate this trump era and this will provide clues as to where the voters are. we haven't talked about democrats yet, but for virginia it's a must win state. they are hemorrhaging support across the country. neil: they don't want to split. >> will try to spin it that way if that's what happens but that's not a big to refer them. >> look at their party with donna brazile coming out with this. neil: maybe that's helping republicans. >> they couldn't come together with the republicans. they could need in the last one.

just saying. neil: guys, want to thank you very much. in the meantime, special election coverage tonight beginning at 8:00 p.m. eastern. and whenever, we think it matters. we thought this was important enough for you. when we say but that you cover at the intersection between money and politics, we mean it and we were doing it many, many years ago when people were laughing at the premise. i don't think they are laughing anymore. right, america? more after this. hi, i'm the internet! you know what's difficult? armless bowling. ahhhhhhhh! you know what's easy? building your website with godaddy. get your domain today and get a free trial of gocentral. build a better website in under an hour.

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>> welcome back to cavuto coast to coast. i'm nicole petallides live on the floor of the new york stock exchange oversaw highs across the board for the dow, nasdaq, s&p. pull back with slight losses here. the dow is now down 20 after having been hired by more than 50-point.

records across the board in any gain at the closing bell would be a closing record. also watching the names most of the s&p 500 companies have reported thus far at 85% reported, 73 have beaten earnings per share. we will watch for marriott today "after the bell." half of 1% consumer spending has been on the rise of labels the work can benefit from not. also watching map, which has been under pressure down under the last six months. today though a three-point 3%. back to you, neil. neil: thank you very much. donna brazile controversial comments have been generating the day the party and what is more to the point within the party, the future of the democratic party, this is very crucial races are underway as we speak in new york city, where mayor built of ozzy was favored to win reelection but you never

know. if the lewinsky can run the idea of challenging for reelection, talking people's corp. founder, chairman and ceo, fundraiser of barack obama, don peeples joins us right now. very good to see you my friend. >> good to see you. neil: any regrets you didn't run? >> my regret is no one else emerge to challenge him. neil: you had to know was looking that way. no one appears to make a dent. >> the same old thing about career politicians. they all wanted safety, term limits in new york. no one had to run and take the risk. no guts, no glory. unfortunately, he's going to walk back in. bill bavasi o. -- neil: how is that possible? >> democrats don't even want them. turnout was 14% when he won four

years before that in 2013 of his 27%. when rudy giuliani ran in 1993, it was 57%. so voters -- neil: but if he wins by a large margin, there's no way of knowing. he's going to take that as sort of a bernie sanders show of support, that his appeal to the left of the party, and that's even alienated governor cuomo of new york, fellow democrat is the future of the party. what do you think? >> i say he's probably enough to do that, but the reality is the fact of his own political party, the turnout dropped 50% when they had choices. remember, they had six of their choices in the last primary 2013 and now it's down to him and one other candidate. neil: a win is a win. he still mayor of new york.

neil: if only eight white u.n. office, that is not a mandate. and it shows. he's not able to govern. of course he's not competent. he's not even interest in running the city. he's more of a figurehead. neil: if he is dead, whatever the participation rate is, are you troubled about how the party might embrace that and say, well this is our future. this hard left turn, tax the rich at all cost, that even governor cuomo reject it when he tried to push that is the way the party should be going. because that's where the passion is. >> that is where the road to ruin is. we can't just follow what some people think feels good because frankly his politics turn me off and i'm a lifelong democrat. if we've learned anything -- neil: if you ran again you'd run as a democrat? >> as the party is today, yes.

in fact, the more conservative, more responsible democrats need to step forward and take back. neil: both parties are hostage. >> most people are much more towards the center. new yorkers especially. new york is getting less safe by the minute. the quality of life is declined significantly since this man is an in office. neil: why didn't he run? >> i'm a father first denied to children. one daughter. one doctor who. one doctor who was 14, 14, soon to be 15. i want to be in the house up there and see her and be a part of her life and her last for years and our home. my son graduated college a year and a half ago and works in our company. i'm excited and look forward to it for all of his life, to teach them the business. so i want to do that. neil: did you run this by your kids? i was asked the boot kicked around ideas for running make a variety of reasons. most people say it is such an

increasingly broad an even demeaning process that they're not dead. >> well, my family would have supported me and my son encouraged me. it was my decision to make. i made the decision that was best roomie and best for my family. she wanted me to run, too. the current mayor, even at 14 she realizes he's incompetent because she walks around the city and the same. my company, my family, $3 billion going down. neil: perfectly valid reasons that democrats watching and hearing used to well, he's breaking the role, and under several that we don't disown. that could hurt you down the road. >> bill deblasio is not a democrat. he's a socialist.

he is a socialist. bernie sanders is a socialist. he is not a democrat. he in fact make copies of democrats, that he is a socialist independent. and so -- neil: you don't like the direction democrats are going. bernie sanders nationally, the passion -- >> this paternalistic view of how they treat minorities, for example, has led to a retraction in terms of progress for minorities and women in this country terms of economic well-being, educational and ian spent because they don't work. the pathway to access to the american dream runs through economics. and so, economic opportunity are created by businesses and not for knowers and we have to support orange for knowers and encourage business and we cannot continue to have this class warfare. neil: democrats win in virginia and new jersey with a investment

banker expected to do quite well tonight i want to tax the rich and all of that. your thoughts. >> look, new jersey, "the wall street journal" did an editorial about new jersey. what happened is new jersey was based band placating to the union, which are unregulated tax. and for that pathway, they lead to new jersey being the second highest taxed state in the state. neil: chris christie tried that but it didn't work as >> you didn't and he got focused on running for president. you've got a focus on on the job at hand. in virginia, the the democrats both for lieutenant governor and governor are much more conservative much more conservatives dates, more fiscally responsible, more pro-business, especially justin fairfax.

he's very pro-business, so i think they've got a chance to win, but it wouldn't be a type of democrat. i wish new jersey was more competitive. neil: in the meantime from your daughter raised okay with you not running. because of that pizza with me. >> i am home with her and enjoying it. in fact, did it for me. neil: good for you. you're a good man. don peebles. he's a patriot. there aren't too many on the right or the left. donald trump is saying the promises being made trying to cut down the talk about rocket man and all of that. but, he is couching it and i will explain after this.

neil: is it me or is there a different message out of president trump when it comes to north korea that progress is being made, that negotiations have a chance, also requesting

$4 billion for missile defense command deputy assistant didn't have on these different signals or maybe there is the signal. what do you think? >> i think it's an international chess game and this president that are making all the brightness. very very methodical. it's going to japan, south korea appeared before he went to south korea as he was in route, that's when he made the announcement that he needed $4 billion more for missile defense. that was designed to not only send a message to north korea, but also send a message to china. he's trying to squeeze china and did everything he cannot have them. this is the last best chance we've got because really, our next move, what we do depends on what china does or doesn't do them by the way he goes to vietnam and the philippines and you watch, he'll also bring up the south china sea issue of vietnam and philippines in the chinese who snub their nose at the international court. he's doing everything he can diplomatically to put the most pressure on china and thus far

he's the right moves. neil: i thought these were intriguing. the remilitarization of japan, something they have caused to traditionally avoided, prevented from doing and now all of a sudden this president, this prime minister encouraging it. the president would be the beneficiaries on a whole different level that changes the dynamics in asia. >> well thought out. i think it's part of the strategy. i was very surprised to see this. the chinese were more surprised to see it. everything he's doing thus far is very well thought out. i do want to talk about this missile defense. that really isn't new news, but the timing on this is very interesting. his missile defense budget was basically obama's budget. it was 727 billion is what he proposed for missile defense agency. 85% for all historically 85%

have gone to missile defense agency. george w. bush last year with 9.3 billion. so this president proposed last. that was the problem with the obama holdover thin air. you see their mischief on the budget. the president wanted to correct it. he's doing it, but he made the decision to announce the right before he goes to south korea. neil: always good seeing you, my friend. thank you for your wonderful service to the country. much, much more. he's too honest to say that. much more on that. meanwhile, oil is in and out of two-year highs. a lot of this has to do with saudi arabia turmoil. and think about what is happening. it seems like all the ones that sikhs have hit the fan. more after this.

hey, you every talk to anybody about your money? yeah, i got some financial guidance a while ago. how'd that go?

he kept spelling my name with an 'i' but it's bryan with a 'y.' yeah, since birth. that drives me crazy. yes. it's on all your email. yes. they should know this? yeah. the guy was my brother-in-law. that's ridiculous. well, i happen to know some people. do they listen? what? they're amazing listeners. nice. guidance from professionals who take their time to get to know you.

neil: already coming at you nbc is finding sources saying the manhattan district attorney tends to present harvey weinstein's case to a grand jury next week at criminal charges that could involve a host of issues, including allegations we were told earlier on a possible

rape charges. this could be the beginning of legal efforts in new york to formal charges, grand jury charges that could be stalled out in due order. in the meantime, saudi arabia attorney general saying this is the start of an anticorruption push. this has the new chic in charges getting rid of the other sheets who used to be in charge or at least telling them. of course in saudi arabia, they're holed up in the ritz-carlton, but we don't know where this is going. we do know that lebanon intentions of ever escalating, gunmen firing missiles or this is the stuff which oil prices could soar. haven't yet. may be possible soon. but from local oil ceo job trotsky. what do you think? >> well, it would be -- affect prices to the upside is saudi

arabia certainly can export 10 million barrels a day, which is their price, but not in the past because of the u.s. shale production. our proven reserves are greater than theirs and their production is actually seeming mayors. if we go into the $60 range on wti, you will turn back a lot of producers. long-term, they are much more geopolitical implications that we want saudi arabia to get through this peacefully, to weed out the corruption and make the transformation from an extraction society to a global economy. neil: this looks a little weird to put it mildly. you know, tightening its grip on power, getting rid of or, you know, containing jail and some of his rivals in the kingdom, family members the lot of them.

that doesn't sound good, but play it out. >> well, certainly he is stretching a little bit and peddling political scores and there is a part of this that is enriching his own base in his own power at the expense of rivals. but i do think he really is serious about wanting corruption. neil: you don't think it start of a revolution or saudi arabia, just heard a going sort of like what egypt did with the spring uprising or anything like that? >> no. but if it is not handled properly, first of all if there is no change, there will be a revolution because saudi has got a lot of things that right now are very combustible. they have a young population. they have a large shia minority

population, particularly in the east, which is where they have to expand their oil production if they want to keep revenues up in the oil price environment. and of course, iran, their neighbor is a bad actor if changes aren't made in the country. the people with the distribution of income being on great and the corruption they see in the lifestyle of the other sheiks really add to that. so, he really has to affect an enemy corruption and i think that's very positive. the problem is this is not teddy roosevelt 1900. he's got to make sure he does it with due process, and doesn't reach too far and doesn't try to just enhance his own political power. neil: in his agitating, talking about lebanon agitating, firing missiles, and you don't tank

they come to war in just a group of countries? >> well, i think i ran it audi arabia could eventually go to war. they are the two major actors in the middle east and certainly have no love loss for each other, either from a political or religious standpoint, so i am worried about that. but again, i think he has to make the reforms, but he has to do it in a way and this is a delicate balance. i think a good analogy is when the shah opened a little bit, they really just exploded. most of these countries are to use a cookie analogy, pressure cookers, so you would need to let the steam out gradually. neil: the shot of the iran open the door. very good to see you. thank you.

second round, just to let you know come our special coverage on the election and these two crucial days. what is happening in new york city and on the part of democrats to pick up more of the legislature's as well. watch this.

is. . . .

neil: you know sometimes i wish we had more time on this show. we just have great video of governor christie in new jersey going at it with a voter after he finished voting in new jersey. maybe we'll play that tonight in

the live coverage. kicks off 8:00 p.m. goes to whenever crucial races in new jersey, in virginia. trish regan will be helping us as well. a lot of other crucial races as well to report in washington state. so much else going on in new york city. busy busy night. trish: this is a big one for you. neil: exactly, there you go. trish: be there with you. looking forward to it, neil. lawmakers are making changes on capitol hill. the white house is determined to get tax reform done this year. today president trump's top economic advisors will meet with eight senate democrats because, let's face it, the republicans can not do this one alone. i'm trish regan. welcome, everyone, to "the intelligence report." we said it over and over again. i certainly told you. there are a lot of things i like about this bill. a whole lot of things i like about the gop tax bill. a lot of great things, offering tax relief for millions of americans, that's good. corporate tax relief? that's good.