maria: $400,000, that's great. i'm going to buy shares in it. dagen: if you drive as fiercely as you interview some people, folks better look out. [laughter] maria: great show, guys, thanks so much. we will see you tomorrow, everybody. thanks for joining us. varney & company begins right now. stuart, over to you. stuart: one year later the left wins. in virginia ralph northam becomes governor, won by decisive 8 points n. new jersey democrat murphy swamped the republican candidate by 14 points. in new york city hard left mayor de blasio won a second term overwhelming opponent roughly 66 to 28 and in maine, voters approved a ballot measure that would extend medicaid, taxpayer

government run health care on the march. media reaction to this. trump was on the ballot and he lost. okay, the president is making headlines of his own in asia, he's issued a strong warning to north korea. don't underestimate us he says because that would be a fatal miscalculation. the president is now in china, a red carpet welcome and public ceremonies, privately meeting with xi jinping. no retreat for the market this morning even though there's a report that the senate will consider delaying the tax cut for businesses. modest declines for stocks, that's it. yes, let's not forget, please, it is one year since donald trump won that stunning election victory. in 12 months the market is at 5.4 trillion to the value of oil

stocks and the dow has hit 58 records. the new york times paul, remember, dead wrong, varney & company going to -- got it righe one-year anniversary show is about to begin. ♪ ♪ stuart: june 16, 2016 donald trump staged presidential announcement descending after escalator in trump tower. we watched it live, we put it on the air live. frankly, we didn't take it seriously and were shocked of his ideas, build a wall, rip up trade deals but he changed politics and we are not laughing now. the underlying issue in our society and in this election is the demise of the middle class, the shrinking of the middle class and the feels that the future isn't going to get

better. wait the market goes way down, first vote that i have ever cast anywhere in the world at any time in my life and it was a thrill. and then wisconsin, hillary's defensive wall breached and up to the races. right around the midnight hour, donald trump became the president elect. yeah. those are the days. that was one year ago today. what a year it has been. look at these gains for the dow jones average, s&p 500 and the nasdaq, look who is with us now. money press kind of guy. kudos to you. right in the first couple of days of president trump's win, this market will go straight up, 19,000, some more, 20,000, all right, it's now 23,000, where is it going? >> once again, i'm starting to get a little cautious.

i love the earnings, some tech earnings have been spectacular. here we are again where we have relied so much on the prospect of tax cuts. stuart: you're disappointed by the plan? >> absolutely. look at the divisiveness between the republican party and what's going on between the house and senate is terrible. the market might take a hard look at this and start to get worried in here. stuart: would you take any money off -- wait, you have been a big supporter of technology stocks, all of them, you love them, you bought them and recommended them, would you take any money out now? >> no, standard operating procedure for me is basically put in stock laws, orders, if the stocks come down, 5, 7, 10% where i'm not comfortable with them anymore, we get out. we did that with amazon and we did it with apple, we got back in. we got out and took profits and got right back in and ridden them up unfortunately. now we are back in. same thing that's going to happen right here. i'm a little cautious.

we will take profits. stuart: were you a little surprised a year ago that it went straight up so fast? >> no. stuart: the only guy that was not surprised and that's a fact. we want to open the market with you, thank you, sir. let's get to politics, it was a rough night for republicans, the democrats win in new jersey, win in virginia and a referendum vote on medicaid expansion won in the state of maine. now, the media is calling them a referendum on the president, spokesperson for the national committee is with us now. you have a nice smile, do you have any silver linings to offer your republican colleagues? >> i do. democrats had home field advantage last night and won blue state that is hillary won and that they should have won last night. for democrats to say this is a referendum on president trump, that's false. the candidates in this case, republican candidates distanced

himself, ralph northam moved to the president when he realized the president's policies, flip-flopped on sanctuary city, victory ad that was so awful, democratic play book appears to move closer to the president. stuart: has the brand, the republican brand suffered at all? we've had a year now where the republicans have not achieved that much, would you say a lot of people are saying the republican brand has suffered? >> i don't think so because we are going to have tax cuts and they're going to be big tax cuts and if we have them by december, the republican brand is going to have a lot of life and a lot of energy under it. stuart: hold on a second. i'm sorry to interrupt you. not everybody who pays taxes will get a tax cut. not everybody. >> the focus has always been middle class, the focus has been blue-collar workers and job creators. stuart: yes, but i'm going to interrupt you again. the people who pay most of the taxes now will not be getting a tax cut, many of them, i would say most of them will actually get a tax increase.

>> well, the job creators, those who are paying the corporate tax rate, they will get a tax break and small business owners and, stuart, i would remind you in the reagan years we had waves of tax cuts, you can't do it all at once. stuart: wait a second, donald reagan concentrated tax cuts for individuals and everybody got a tax cut. this tax plan that we have seen so far is not reaganesque. >> it is reaganesque. pass-through rate comes down. we have to get this with 50 votes, 51 votes. we can only add 1.5 trillion to the deficit over ten year period. those are the reconciliation rules. we are limited to what we can do. we are giving a break to middle-class workers. stuart: perhaps you'll have a word with colleagues in the senate who are thinking about delaying the corporate tax cut rate for a year and getting rid of the entire deduction for state and local taxes, can you

have a quick word with them because that's not going to be popular? >> i'm sure the president will because president trump has been very clear. he does not want to corporate tax cut delayed. we have the highest rate in the industrialized world. we are not competitive on the international plan, that's why they flee the country in corporate. the corporate tax rate needs to come down. i'm sure he will be having a word with many senators. stuart: we will see if senators respond to president trump. katie, appreciate it. >> thank you, stuart. stuart: president trump is in china right now reportedly deals are being made and we are talking maybe tens of billions of dollars worth of deals signed in china today and tomorrow. jack howe is with us and senior editor with barrons. that market is going react to this. >> you're definitely going to see a boeing.

you don't have to make the deal, we have things called the telephone and internet. if you're these companies and you want to stay on the good side of the administration what you do is your time your announcements carefully to make it look like a big win in china. stuart: you make it sound like it's robert cosmetic. cynical. >> it's not selling them because of this trip. boeing selling planes because it's a great company with great technology. stuart: okay, you talked about boeing, fair enough. defense contractors, they're going to do well, not necessarily with china but certainly japan and south korea, they do well. >> that's business that's very much dependent on the government. you know, there's -- there are things to talk about here in terms of we want to, you know, china similar porting more coal right now. we have coal to sell. we have very high technology goods for power reactors and things like that.

so, look, business to be done in china. during the campaign it was all hard line about china is killing us, china and all of sudden sweet deals. ashley: the art of the deal. >> trade deficits with china are bigger than ever right now. stuart: i have more for you a little bit later. this from the wall street journal, at&t executive reportedly say that is the timing of the time warner deal is now uncertain. i'm not sure the repercussions of that, those stocks are ever so slightly high. ashley: the government may want to slow this thing down because the same official said they were going to close it by the end of the year and now says it's uncertain. 825 billion-dollar deal antitrust review possibly. stuart: thank you, young man. ashley: you're welcome. stuart: thank you very much. let's get to taxes. the washington post says the senate's tax bill could delay the corporate tax rate cut by a year. congressman kevin brady, top guy

on the top writing committee in the house, he's going to respond to that in a moment. first, check this out, please, a robotic prosthetic hand built with 3d printers, it was invented and built by a high school student. he's going to join us. 11:00 o'clock this morning. he'll have his invention with him and you will see it in action. google testing out a new feature, watch out, it will start displaying weight times for restaurant and grocery stores on its maps and searches. obviously good news if you hate waiting on line. not so good if you have a restaurant with the long lines. and then we have apple, again, reportedly working on an old reality head set. you put it on and you can see computer graphics like maps and news feds overlaid on the real world. can't wait. [laughter] stuart: north korean defectors telling horror stories about the aftereffects of that country's nuclear weapon's test, crops won't grow, babies born with

severe birth defects and really bad stuff.

stuart: moments ago i spoke to congressman kevin brady before he headed to late round of debate on tax bill. roll tape, please. we are joined by congressman kevin brady, house ways and means committee, congressman brady, welcome to the program. >> thanks for having me. stuart: i have to tell you there's a lot of disappointment out there because not everyone gets a tax cut under your plan. >> well, look, there are tax cuts up and down the line. we've gone pretty bold on the standard deduction, trying to make sure people keep the mortgage interest, property tax deduction, charitable as well and we lowered the rates and the other thing, stuart people don't realize this new family credit which really helps people, middle-class families in a big way, so you are seeing tax cuts

at every level. stuart: but there's no tax cut for the upper-income people. that rate stays the same and basically the people who pay most of the tax do not get a cut. many of them will actually pay more. >> so, stuart, let me just say this, in every model we run, those at every level get a tax cut and as you know, that's sort of how tax cuts work. each income bracket, there's a rate reduction. so those at upper get reduction of zero percent and even in worst case scenarios, we are showing tax relief in every level in this form. stuart: i am going to break interview. ashley: i don't understand that at all. if you are upper income, you're paying 39.6, you're losing, specially for you, stuart, in new jersey, deductions of state and local income taxes.

okay, you get the capt mortgage interest rate deduction, but i don't see how you can gain from that. you're going to be paying more. you have to. stuart: a lot of people will, in fact, be paying more. i want to continue with the interview because we talked about the possible corporate tax rate delay. roll tape on that, please. there's a headline in washington post, you may have seen it for you, senate gop tax bill could delay corporate tax cut. it goes onto say that make other changes that break with house plan, would you -- would you oppose that, any kind of delay in the corporate tax rate cut? >> so we went in the house, we went from immediate tax relief on the family provisions, on the expensing provisions for small businesses and on the rate cuts for all businesses, we think that's critical for growth, but stuart, i think this is a process. the senate is going to differ in some regards and i think in their whole bill you'll see some different approaches than where we are headed in the house but

that's the healthy thing. this is the way it works. stuart: okay, now we are going to have more on mr. brady's interview later,let get comment on the possible delay on the corporate tax rate cut as announced or suspected and reported today in the washington post. ashley: incredibly disappointing if that's the case. stuart: i thought it would disappoint the market. >> it still may. house republicans and senate republicans have to get coalesce around. they should have figured this out a long time ago. stuart: yeah. kevin brady is in the house and i was asking a question about what comes out of the senate so a little unfair there. but what do you make of this? a delay in the tax rate cut for business? it's not good. >> it's not punishing the stock market because the vast majority of companies pay nothing close to the statutory maximum rate, however, it's still an unfair system, right, you still get stuck if you're a domestic company selling to domestic

consumers and you don't have the levers to pull without paying tax if you're a big global company, we want a fairer playing field. i would prefer them come down to something, 25% and get rid of a lot of the breaks and make it fairer, we will work on 20% down the road but let's work on something simpler now. stuart: the senate is considering completely getting rid of the entire deduction of state and local taxes. now, what do you say to that? >> ashley: it would certainly generate a whole lot of money. >> that's not going to fly in new york, california. all high-taxed states. >> that's what hits rich people. this kills the upper-middle class. families making $250,000 a year, that sounds like rich families to some folks, i can tell you where we live, that's a family that spends a lot of what it makes, a family that can still

contribute to the economy. stuart: 100,000-dollar income households, new jersey, new york, they will pay more. down to $100,000, okay, that's a family income, they'll pay more. all right, we will have more on the brady interview a little later in the program. i want to tell you about this, the crack-down in saudi arabia, according to wall street journal, the saudis want to confiscate $800 billion worth of assets from some of the most powerful people in the country. how about that? more varney after this

stuart: a disturbing report from the wall street journal saying the saudi government aims to confiscate up to $800 billion worth of assets in the broadening crack-down within the country. jack hough, i find that disturbing, what are they going to do, sell all stocks in american companies? >> there's going to be turmoil. he said to want a freer, laxer society in saudi arabia but going about it in ways in way that is seem anything but free and lax. the long-term hope is that they

can extend new rights, create an economy that is diversified away from oil and you have to crack-down on descent. stuart: you're not a little worried when a government seizes $800 billion largely held in america and european countries? >> i'm worried about -- stuart: wait a second, they can turn around and say, if you america and britain and europe, you don't see it my way in this war with iran which is virtual war actually, you don't see it my way, i'm going to sell the stocks that we have in citigroup and other western countries? >> i don't think saudi arabia has nearly the strong hand it once did since the u.s. become the world's most important driller of oil and gas. >> i don't think so that the saudis would sell any assets if they confiscate and hold, there's no intention to ruin. stuart: the stock market is not going to sell off big time when

the market opens in about 3 to 4 minute's time. narcotic, we will be down by not by much. slight drop at the opening bell which we will bring to you momentarily. nah. not gonna happen. that's it. i'm calling kohler about their walk-in bath. my name is ken. how may i help you?

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stuart: wednesday morning, the market opens in 15 seconds, we

are expecting a very slight downside move at the opening bell. despite negatives in the background, you can hear the bell ringing, you can see them applauding, when they've done that, bingo, the market opens, here we go. 9:30 eastern time. we are up, running, we are down 14. i will make this into a horse race, down 19, down 22, plenty of red on the left-hand side of your screen. down 25 now. look at the level, please, 23,500, that's where we are. plenty of red. okay, so we are down .12% on the dow. how about the s&p 500? that is down .13, similar decline and for the nasdaq, let's see if we have a triple here, down .06, losses in technology stocks not as big as elsewhere. one year ago today, there was the election, we are all shocked, we were all stunned, a lot of people were expecting a big selloff, that's what we got,

dow up 28%, s&p nearly up 23% and look at the nasdaq, a 30% increase since the election of donald trump. i intend to call it the trump rally. i have for the last year and i intend to keep calling it as long as it lasts. not a strong bump. trump rally, get out of here. we have to take a look at snap, a big loss. fewer users, the number of users grew but not by very much. that's not good. ashley: no. stuart: china's ten cent, the internet company there, took 12% stake in the company, it's not helping the stock. snap is down 12%. maybe later we will cue the organ music for that stock. ashley: it's too hard to use, they are going to redesign it. stuart: really? ashley: yeah. stuart: sears, lower sales, i believe, in the third quarter, and a loss so down they go, just holding at $5 a share.

there's another one with organ music that would be appropriate later, the washington post says, reports that senate will consider delaying the tax cut for business, what would that do for the market, what has it done? ashley webster, jack hough, sean, what would it do for this rally if there was a delay for a year? >> stall the rally. earnings will push further and heels and hope for tax cuts coming along. if it's going to be delayed and heading to midterms next year and year after, we will see more -- perhaps more of what we saw yesterday in terms of some elections, i think that's going to scare a lot of people, investors might think, we may not get tax cuts, the market might stall here. stuart: stall as opposed to sell? >> stall is probably what it will do. stuart: gains for stocks since the election, jack hough, obviously they are on a roll here in the last 12 months, what

do you think could derail this rally in. >> just something that is more attractive than stocks, meaning bonds, meaning higher interest rates, i don't see that in the offering right now, this tax delay is -- if you saw the high tax rate companies leading the charge right now, you'd be worried about this, we don't see that, tech is leading the charge, i think the market gains will be safe until you see much more attractive returns on other investments, that you will not see for a little while now. stuart: that's interesting. as reported the chinese internet company ten cent, it's taking a 12% stake in snap. the stock even despite that, the stock is way, way down. would you buy it? >> i missed out on 10-cent. stuart: you don't own it? >> i don't own it. snap as i'm calling it, i wouldn't touch it, too many problems, too many issues, too much competition in facebook alone, instagram, whatsapp. when the ceo comes out and says

they have a problem with ability of users to enjoy it and get on it and have an easy time with it -- yes. >> amazing they figured that out before they sold shares to public. that's the dangerous of ipo, someone who knows more than you deciding that it's time to sell. >> 10-cent makes a bid for it at some point. stuart: we are down 23 points on the dow industrial. the level is 23,500 and change. we have been showing you a lot of the winners since the election. the list of winners does not include general electric, not one of the winners, one of the big losers since the election has dropped 31%, ouch. it's still only in the 20-dollar range. the chip-maker, this is an interesting one. it's been a huge winner since the election, it's actually almost tripled, what do you say

about that? >> chips for video games, highly parallel processing you do there, lends well to artificial intelligence and data centers, right place at the right time, however, intel is now coming up with chips that are built from ground up that will do the same thing, 10 to 1 advantage in terms of intel in terms of cash, they have to invest on r&d. stuart: all right, i will be following video. i don't own it. that thing has gone straight up. tripled since the election. then we have marriott hotel people, raised forecast for the third time this year, business travelers using marriott a lot, apparently. wendy's is starting to broaden delivery options. not doing much good this morning. down 4%. this from the wall street journal, an at&t executive says the timing of the time warner

deal with at&t is now uncertain. that's taking time warner down 2% and taking at&t down a fraction. waymo, this is fascinating, look at this, driverless cars on public roads in phoenix. no driver in the driver seat. this has happened quickly. ashley: waymo driver in the backseat but eventually you will be able to use the app, take the deliverless van, chrysler van and you will have the ability to push a button to stop the car if you're not comfortable but as that video shows very well there, you're sitting in the back and the way it goes. >> this is what the future of travel looks like and we don't own cars privately anymore and gm and ford have to figure out how to make money in that world, they will make money by operating fleets and maintaining cars and keeping them on the

road in self-driving world. ashley: they always do these in phoenix because of the weather, they still have a problem with rain and snow and conditions that are not so great. this is why phoenix is always the first place to test. >> not restrictions on self-driving cars. ashley: that helps too. [laughter] stuart: it does. it seems to be coming a lot faster than i thought and i'm not sure we are all going to be jumping at a driverless cars that fast. >> my car can steer itself and speed up and scolds me if i take my hands off the wheel. by next year level three cars, make a sandwich and play the violin. stuart: what car you drive? >> it's a minivan. i'm making the minivan cool again. stuart: you have a pilot? >> i'm a minivan man. the pilot is the suv.

the minivan is where it's at right now. stuart: i do apologize, hough. [laughter] stuart: iphone owners can send money to friends using apple pay cash. i'm going back to jack hough. i don't know why i'm doing that. ashley: and his minivan. stuart: you can send it back text. i owe you a hundred bucks -- ashley: by the way. stuart: i can text it to him, i can text it using apple cash. >> services profits but there's so many players in this business. i think it's way too early to tell who the winners are going to be. square, paypal is generating cash which i always like to see. >> jack is absolutely right. apple pay was supposed to be a big deal. i don't think it exploded the way anybody expected to. it's pretty much flat. i don't think this is going to be a giant hit.

stuart: more on apple, the techy website, they say that the new iphone 10 is the most breakable iphone ever. now i don't know where they get that from, what test they did on it but that's what they are saying. >> the test is done by the company that wants to sell you the insurance in case your iphone breaks. stuart: are you serious? >> i'm serious. this does have glass on the front and the back and repair prices have gone through the roof. ashley: they did the test from 3 feet and the back panel cracked. stuart: yeah. objective test. the most breakable is the iphone -- >> including stabbing the phone. yes, stabbing it with a knife and hammer. if your phone doesn't break with a hammer, i will buy a couple. stuart: big problem with any smartphone is dropping it in the toilet and we all know, or the

bath tube. we all know that. >> who hasn't dropped the phone on the ground? >> we all have. >> most of them crack. if this one cracks on both sides, that's even worse. stuart: google will display wait times when you go to google maps. will you use that kind of thing? >> i think that's a great idea. it's great to know if it's a long wait, it's not so great to the restaurants. stuart: i do not stand in line, i won't do it. i will use this. how about you, jack houhgh. >> all the people that have google apps, standing in line, that are being tracked all around the world just like we are in our cars, suddenly google knows where we are but what we are doing down to most microscopic detail. stuart: we have to wrap it up. okay, let's be done with this.

it's 9:40 i'm going to say thank you to jack and shah. we are down 34 points. got it. a year ago today as the election results are rolling in, liberal economists -- [laughter] >> he wrote, he wrote this. listen to this. markets are plunging, if the question is when markets will recover, a first pass answer is never. how wrong can you possibly be? we are on it. and president trump warning north korea, don't underestimate us, don't try us, but we will not run from -- we will not run from a confrontation. you will hear what he has to say in a moment.

stuart: 18 minutes into the trading. 23,534 on the dow. all-time highs for mcdonalds. slipped a bit since then.

well over 170. look at boeing, powering ahead again. 267 is stock price quote on boeing. bloomberg reporting that apple, their augmented reality head set is only a few years away. nicole, come in please and tell me more about it and tell me does it fix the seasickness problem? nicole: does it fix the seasick sickness problem, i don't know, take a dremamine and put head set and be quiet. no, i'm kidding. they are really pushing augmented reality over virtual reality which they say can be isolating. in this case you wear the head set, timeline is aggressive. they are saying it could be ready in 2019 and ship by 2020 but when you have an august meanted reality head set you can walk in a store and see featured products, can be walking on the street and see a map in case you're lost. i'm sure there might be ads along with that video, games, et

cetera, but just took a peek at the price, pretty close for apple. stuart: by the way, you don't get seasickness with august minted reality, that's a virtual reality problem. nicole: virtual reality is more isolating, that makes a lot of sense. stuart: thank you, nicole, thank you very much, indeed. difficult subject now, north korea's nuclear test site is creating a wasteland, ash. ashley: this comes from 21 north korean defectors speaking to newspaper, they lived in a town just north of where the nuclear test site is in north korea and they talk of babies being born with birth defects, 80% of the vegetation in the area is dead as one of the defectors said that all of the underground wells have also dried up, but that the interesting thing is that they have never given any warning when there's a test, the military can test, done six

nuclear test, we had never given any warning, it's always panic and there's always concern that the radiation could leak into the sea of japan and start affecting other countries near by but clearly the north korean government doesn't care less. stuart: president trump has been talking tough on ted connecticu, roll the tape, please. >> today i speak for our country and all civil sized nations when i say to the north, do not under estimate us and do not try us. we will defend our common security, our shared prosperity and our sacred liberty. america does not seek conflict or confrontation, but we will never run from it. stuart: riley walters watches asia from the heritage foundation.

riley, tough talk but still diplomacy, correct? >> correct. president trump -- he is in china today where north korea will be one of the main talking points between him and xi jinping. with north korea certainly diplomatic and economics top the list of options to deal with north korea. this includes getting, of course, china's help along with other allies to sort of limit the international access to financing that the kim regime night have. stuart: look, riley, the big question, if north koreans fire a missile, do we shoot it down and who shoots it down, would it be japan or the united states? that's surely the big question isn't it? i don't think we have got an answer at this point. >> that is a big question but there's a lot of smaller questions that need to be answered as well within that context, you know, you have to

consider where do they shoot it, are we certain -- stuart: hold on a second. riley, i have to get this nailed down here. they fire a missile, should we knock it out of the sky? >> it depends. shooting it down could escalate to a much greater conflict with north korea which could be devastating for both south korea and japan and the united states. stuart: well, the alternative is letting them shoot it off and doing nothing, isn't it? that's not going to do much good, is it? >> well, that's what we are trying to solve through both the diplomatic and economic options. stuart: okay. all right, riley, we will see how this transpires. riley walters. check the down, down 35 points, we are still above 23,500 and now this. voters in maine approving a big

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stuart: voters in maine have approved by referendum an expansion of medicaid. judge andrew napolitano has a few things to say about this. this was a key -- special medicaid, key element in the obamacare debacle and now the voters in maine have done an end-run around the governor and the legislature. >> yes, the legislature enacted this. the governor vetoed it and the legislature felt to override the governor's veto. people that wanted the expansion of medicaid, expands 70,000

which in a state the size of maine, significant new percentage of financial burden on the state. the voters put this on the ballot, they triggered a provision in the maine constitution that allow it is voters to overrule the governor and the legislature which is what they did. they basically decided socialize medicine for anybody that -- stuart: does this set -- >> republican senator. susan collins. is she a republican? >> maybe she's a good politician, when she voted against the efforts to reform obamacare she was doing so out of act of political self-preservation. angus king, who claims to be independent and votes who organize and votes with the democrats in the senate. stuart: does this open the flood gates to other states with similar ability to bypass legislature?

>> yes, it does but very few of them. most states do not have this sort of swiss as in switzerland. stuart: they want socialized medicine, they want the rich to pay, they want to be more like europe. >> i agree with you fully, stuart, it's very distressing because it'll lead to single-payer, if this is a domino effect that begins cascading around the country, bar and obama will have triumphed. you heard me say this and i will say it again. thomas jefferson and hamilton hated each other and agreed on one thick and publicly said this, when for public treasury becomes a public, they will only send people to the seat of the government that will promise to bring the biggest piece of the pie. voters doing it themselves and not trusting government to big back enough big of a piece of the pie.

stuart: 30 seconds, go ahead. is it reaganuesque. >> we might have as well elected hillary clinton. that's how poor it is to reducing tax burden and giving people more money to spend to stimulate the economy. be reaganesque. do it in one simple one-page change. this 450 page, i tried to read it. it's more complex than the 70,000 pages that already exist. stuart: i think you've made your point. come back at 11:00 and make it again. [laughter] stuart: by the way, 1980's, president reagan did set a high bar on tax cuts. here is the question that i'm going to raise in a moment. is the trump gop plan reaganque. you had the judges opinion, now

you have mine.

test test. tiered tiered. tiered

stuart: generation ago president

ronald reagan set a very high bar. his tax cut plan gave a break to every taxpayer. no exceptions. it produced dynamic economic growth. his tax plan paveed the way for prosperity. which begs the question. is the trump republican plan reagannesque? does it meet reagan's high bar? my answer is no, it does not. here are the facts. the plan we've seen is heavily weighted toward tangs cuts for business. it will grow the economy but does not give a tax cut for all taxpayers. people at top of the income tree, the unloved 1%, do not get a tax rate cut. because some deductions are going away, many pay more into the treasury than they do now. even some middle income people will pay more. that is why the trump tax plan is not ray fannesque.

most of the people paying taxes do not get a break. that makes four or 5% growth rate next year much less likely. the plan goes to the senate. we're hearing it may look less reaganesque when they're done with it. this is not good news. there is no fallout on the market. it is still up from where it was a year ago. in politics there is different story. there is great dispointment that the republicans couldn't come up with everyone. maybe one reason for the big democrat win yesterday. it has been a year since donald trump won the white house, a year so many republicans seem to have lost faith in ronald reagan's basic message. that message was, if you cut taxes for everyone, you grow the economy. this is very disappointing. it is not what was promised. the second hour of "varney" of company is about to begin. ♪

stuart: this is happening on capitol hill. marissa mayer, she is getting grilled. we're down 40 points. as we always do, check the big technology companies. all of them are down except apple all up all of 3 cents. facebook, microsoft. alphabet, down. amazon is opening a fourth maryland fulfillment center in baltimore. by the way it employs 1500 people. amazon has more than 70 full

fillment centers. that is scale for you. watch out look at sears, kmart subsidiary, down 13%. sears down 17%. getting worse. below five bucks a year. time warner down after at&t's chief financial officer says timing of merger deal is now uncertain. they're expected to close by the end of the year. that is now uncertain. time warner taking it on the. numbers on oil inventories. maybe that makes a difference to the crude price. overall market, one year since president trump, donald trump, became president. look at those gains. you heard it right here. buying opportunity, that is what we were saying right from day one. do you remember this? "new york times" columnist, paul krugman, here is what he said.

this is a 12:42 morning of november the 9th, day after the election. the results results results wer. the results look like president donald j. trump. markets are plunging. when might we expect them to recover? if the question is when markets will recover, the first pass answer is, never. oh. stop being so inis call charles payne. great to have you on the show -- cynical. >> he hasn't aged well. stuart: got it wrong immediately. exact opposite. saw it coming on day one, trump administration. did,. >> definitely claim credit. i put out specific ideas to buy. over 200% since trump won? put out report to my subscribers

day before the election. put my money where my mouth is. i said this would happen. absolutely. look at gains, the dow since that would be since the inauguration, actually. 19% up for the dow. you heard my opinion on the tax cut deal. i say it is disappointing. it is not reaganesque. do you think that disappointment translates into a pause for the stock market rally. market rally, true economic development. the wheels of commerce are moving. that is one of the reasons i was excited. i saw signs of a late summer to be frank with you. president trump is already gotten rid of a lot of regulations. i keep telling people. there is old argument going back to the supreme court verdict. business is people. you remember the whole debate after businesses were allowed to contribute to presidential campaigns? no, they're not people. but they're organisms.

what do organisms want? they want to survive and get bigger. that is is what businesses are to their core. organically what they are. they had to put that on pause for eight years. they unleashed the button. they're getting back to the bread and butter trying to grow. they would love to do more economic favorable backdrop. stuart: so you don't think the stock market rally will stall or come down? you're fully on board with another leg up? >> on board with another leg up. stall can always stall. the broad strokes, what i'm looking at data that comes out, things that most people look at, kansas city manufacturing number, six 1/2-year high. those are things that matter to me. let me say from wall street perspective, facts which i love on the earnings data, they took the first week of earnings going back to the fourth quarter of

last year. they asked, they listened to the conference calls. on the fourth quarter of last year, 31% talked about tax cuts. that number started to drift until this last quarter with 25% talked about tax cuts, 77 in positive way. fedex, conagra, citigroup, jpmorgan. big business wants this to happen. they are not modeling for it to happen but they want it to happen. ashley: i think markets are increasingly deaf going on in washington. we saw the health care debacle. to charles' point, not only u.s. is moving but global economy is picking up. >> china for sure. ashley: combined with earnings, what we've seen for businesses -- >> please, stuart, because what the republicans are putting through, by the way, you know, you can call it tax reform but if they put through number,. stuart: few moments ago, top of the hour, i don't think this

plan, latest plan from the republicans in the house, i don't think it is ray grandesque. -- reaganesque. i need more informed opinion. we bring in edward fuller in, heritage foundation president. i'm saying it is not reaganesque, what do you say, edward? >> i say it is reaganesque, stuart. i'm enthusiastic where the bill is currently is in terms of most of the specifics and in terms of where it is going to go. our motto here at heritage, keep calm and cut taxes. that is what we've got to do. when the judge talks about a 400 page bill, a lot is cleaning up what is in the tax code already. we have to sim islify. we have to lower it. make it better. this bill does it on most of those fronts. stuart: hold on a second, not every taxpayer gets a tax rate cut. upper income people. i know they're unloved, 1% despised largely, they don't get a tax cut. these people paying most of the taxes in this country.

they, many of emthis, i would say most of them, will end up paying more. that is not reaganesque. >> you're absolutely right, stuart. the new 39.6 or continued 39.6 top bracket is not something we're enthusiastic about, since the top 1% as you point out pay 35% of all income taxes. that is not a way to grow the economy. what it is doing on the business side, and what we're doing in terms of lower rates for most of the people, are really big steps in the right direction. remember, reagan -- stuart: hold on a second, we don't like what we're hearing in "the washington post" today. they're saying that the senate is going to think about delaying even the business tax cut for a year, and they're talking about, getting rid of the entire state and local tax deduction. that would hit the 1%. it would hit current taxpayers really hard. >> i think, paul ryan, and kevin

brady and others in the house come up with a great, intermediate compromise, if you will on salt, state and local taxes, in terms of eliminating the income tax, keeping property tax deductions. it is a good first step. remember -- stuart: it is terrible. ed, it is terrible. come on, you know that. >> that is because you live in new york. stuart: no. it is not. it is not. anybody who lives in a high-taxed state, there is a lot of high-taxed states, california, new jersey, new york, massachusetts, connecticut, illinois, they are high-taxed states. there are lots of high income earners right there in those states. they will pay more, a lot more. under the senate version, or under the house version. this isn't good, ed. >> it is not perfect, stuart, law is very seldom are. ronald reagan reminded us if i can get 70% of what i want, take the 70 and come back for other 30 later.

remember the reagan tax was not effective as we really wanted because it was phased in over three years. if the senate reduced delaying, business tax cuts that would be a big step backwards. we would strongly oppose that as i said, at heritage, our motto, keep calm, cut taxes. stuart: you have a prop in there. we couldn't quite read it. i take your word for it. >> says keep calm, cut taxes. stuart: that is from the british expression during the second world war, keep warm, carry on. i don't quite remember that. ed fulner, come back real soon. charles payne is itching -- >> i should tell ed, they should have one more line, start panicking and cut spending. no one is cutting spending. that is the magic elixer, to make it work, cut spending. by the way, that is not a novel

idea for republicans at least for last eight years. stuart: cut taxes, let economy grow. come on. stay there. another nugget from, about the trump stock rally. it is the biggest one-year rise in percentage terms since 1945. that is the harry truman days, which i do remember by the way. we're on it. i saw saudi arabia is on the brink of war with iran. the government targeting $800 billion worth of assets from people they have detained. we're on that one too. the senate reportedly wants to delay corporate tax rate cut by a year. senator mike lee will join us later this hour. you're watching second hour of "varney & company." ♪ ♪ dad: we walk inside... and it's raining...

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stuart: give us growth and america get as tate of prosperity. that is what what should look fr tomorrow morning. sit back and look at history unfold. >> we'll get to work immediately for the american people and we're going to do a job hopefully you will be so proud of your president. >> i hope he will be a successful president for all americans. >> i love this country. thank you, thank you very much. [cheers and applause] stuart: ah, seems like just yesterday to some of us. it was a year ago, of course. i want to show you some of the aspects of the huge trump stock market rally. first of all, winners on the dow, dow stocks, which are huge winners since the election, boeing, caterpillar, apple. diverse companies, way up, just since the election. now this is as all dow winners,

mcdonald's, unitedhealth, jpmorgan, straight up since the election. extraordinary rally gained $5.4 trillion to the value of all stocks on our exchanges. what a performance in the past year. now this, from "the wall street journal." according to them, the saudi government is considering confiscating $800 billion worth of assets held by those people that they have been arresting and detaining. princes, ministers, top business executives. joining us now, pete hegseth, "fox & friends weekend" co-host. seems to me, pete, the underlying subtext is war, war between saudi arabia and iran. it is not an overt war but they're pretty close. what say you? >> very close. the houthi rebels and missiles fired, something obviously saud said will take very seriously. iran is trying to distance themselves from but they have been supporting the rebels for a long time.

this is the main fault line in the middle east, sunnis and shia. the two houses are saudis and iranians. for this to reach a fever pitch, it will impact us. the house of saud, crown prince could consolidation of power. i hope there is empowerment. you have a empowered iran with new access through the deal, new pathway to nuclear weapons. that is not good. when you see missiles fired this way, rhetoric ratcheted up. it will not be overt war, we'll see things go down as far as retaliation. stuart: are we clearly america, on side of saudis as they consolidate power along with most europeans and brits and israelis? >> i think we are. we made a shift from the iranians during the obama administration. i don't like being in bed with either side. i don't want to be.

saudi arabia very important, sunni islam, the largest important of islam, keeper of two holiest sites. a lot of potential for radicalization within that kingdom. if you have a strong leader at top it that tamps down radicalism that is good fight against islamic terrorism, if you pick one side but in backwards way could empower the wrong people. hopefully this crown prince should modernize and squash radicalism. stuart: let's hope it is not a shah of iran situation from the 1970s. we got that. >> yes. stuart: i think president trump is primary engaging in diplomacy overseas on the asian tour. the message he seems to be delivering, stop north korea do it diplomatally. roll tape. >> america does not seek conflict or confrontation but we will never run from it. we will not be intimidated. we will not let the worst atrocities in history be

repeated here on this ground we fought and died so hard to secure. stuart: okay. now that is the diplomatic response. pete, you're a a military guy. answer me this question. when the north koreans, if the north koreans launch another missile towards japan, towards guam, a, should somebody shoot it down, b, who should shoot it down, if anybody? >> a, yes. and b, whoever we determine is the most appropriate to do so. you don't do so in order to ratchet up a nuclear conflict. you do so to tell the kim jong-un regime, you will go no further. that is why the president wanted to go to the dmz. fog prevented him from doing so. he said we will go to war if necessary to prevent living under nuclear blackmail from you. we would prefer diplomacy. that is how we avoid war. that is how you avoid death. how ultimately this is resolved. you have, they have to believe that we will do something

militarily, or else diplomacy has no chance. that hasn't worked for 25 years. yes, we got to shoot it down. we have to make dramatic next step. the president is in the region delivering that very message. stuart: got it. pete hegseth. thank you, sir. >> thanks, guys. stuart: happening now, marissa mayer, former yahoo! chief, she is testifying on the massive yahoo! breach in yahoo!. they had to subpoena here there to get it there. we'll deal with that in a moment. ♪ building a website in under an hour is easy with gocentral...

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says look to the future, it is rosie future. up goes the stock. plan net fitness, gym guys, they say business will be good. all you have to look to the future, business is great. they will -- happening in the senate, hearings on the hacking and data breaches. current and former second istives from equifax and yahoo! are there including marissa mayer. she had to be subpoenaed to get there. deirdre bolton. >> that is true. stuart: no way on god's green that's right they can protect my personal data. it is gone. reporter: even companies likes nike, apple, they can not control the fact that their offshore law firm got hacked. so we're all vulnerable. that is the right conclusion. meantime i do think senators thune and nelson want to make these people feel bad. they're dragging marissa mayer down there, saying how could you

not prevent -- i think with yahoo! shocks people, it was 100% of users. it wasn't like, oh, 20%, hey we got it and fixed it. 3 billion accounts. if you look the way these hacks, yeah, every single person who had a yahoo! account was hacked. now the only silver lining to the yahoo! story, which is very different than the equifax story, that for the yahoo! story, you didn't have particularly sensitive financial information that was hacked. not saying you should feel good about it. i'm pointing out the fact. equifax is one that is killing people. those execs face a grilling. names, social security numbers, driver's licenses, credit card numbers, that was a mess. 40% of the u.s. population. stuart: political theater. we'll take you there. reporter: sure. stuart: coming up, i say, this is my opinion, the gop tax plan we've now seen is not reaganesque. not at all like reaganesque. that is something we'll be discussing for the next 90 minutes of "varney & company."

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♪ stuart: okay. not sure about the music, but i can tell you this, the dow industrials are down 30 points. after first one hour's worth of business. we have numbers, how much oil in storage. ashley: we were up 2.25 million barrels. you would think that brings oil prices down a little bit. stuart: a little bit. ashley: saudi arabia situation kept oil prices high this week. more oil in storage than we thought. stuart: larger than expected draw down, justin in gasoline? so we used a lot of gas. so demand for gas is pretty

strong. amount of oil in storage went up. price of oil stays at 56 bucks a barrel. being held up at that level, largely as you said by saudi arabia and the proxy fight with iran. big check names, check them all the time. that is where the money goes. only one which is apple, up 32 cents. 175 on apple as of now. but look at snap. multiple downgrades today. reported very slow subscriber growth, sluggish revenue gains, and the stock is down 15%. a chinese company, tencent, they took a 12% stake in snap, announced it this morning. did not help the stock at all. down 15%. at&t says it will invest additional one billion dollars into our economy, if a competitive tax rate is enacted. okay, want to get back to the tax plan from the gop. the sausage-making continues right now. joining us, congressman tom

macarthur, republican from new jersey. congressman, there was an election yesterday in our great state and a democrat won the governorship. he pledges to raise taxes on high income people. high income people in your state, in your constituency, with the election of the democrat governor and with this tax plan from the house, they're going to be paying a ton more in taxes. what do you say to them? >> well, i, first i will work with the new governor but i disagree with the idea of raising taxes. he can't stop with just the wealthy because the things he wants to do are going to cost too much. as far as, federal government goes, we are going to cut taxes in our plan. stuart: hold on a second. the new governor of new jersey says he will raise taxes and he will. and those taxes, those extra taxes levied on the people of new jersey will not be deductible against their federal income tax return.

your constituents are going to suffer. >> stuart you have to look at the whole plan. what we're trying to do with this plan go from a high rate tax system with a lot of loopholes, a lot of those loopholes most people can't tap into, we're trying to move into much lower rate. yes, there are fewer exceptions. i fought very hard over the last two months to get back the ability to deduct property taxes, and in fact, the vast majority of people, excuse me in new jersey will be able to deduct all of their property tax, but the rates are coming down so much that people in new jersey will see a federal tax decrease in our plan. stuart: no. top, the top, no, the top 1% will still pay 39.6%. they will lose their deduction for state and local taxes. they will have their mortgage interest deduction capped at 500,000, way below where it is now.

and their property tax deduction is also going to be taxed, i should say. that means awful lot of people in new jersey, in your constituency, will be paying more, not less, more. it is not reaganesque. ronald reagan cut taxes for everybody. this plan does not. >> let me, let me say two things to you, stuart. first of all you're right, that the one group of people that, i'm still looking at it, you call them the top 1%, people that make over a million dollars a year, you're right the rate stays at 39.6%, but this is like taking an elevator up, every floor of income has a rate attached to it. the rates are going down in all of the lower floors, which benefits all the people that don't make a million dollars. let's face it, most people don't make a million dollars. i'm concerned with people that are making 50 and 75 and $100,000. those people will see a, a

significant reduction in their taxes. and because the rates are so much lower at the lower floors, if you will, even the millionaire, and i have gone through this six ways from sunday, stuart, i looked at every income bracket, i looked at the effect of losing deductions plus losing amt, which is a good things and there is no income bracket, no income bracket in the state of new jersey that the average person in that bracket won't go down. now i'm looking at all the exceptions, the outlyers, but, look, we, i would ask the american people this, the people in my state this. do you want to keep having a high tax environment where there is tons of loopholes that you never seem to get to take, or want to have a lower rate, simpler, fairer, tax code? that is what we're fighting for here. that is what we're trying to get

to. stuart: it will be a long, long time before taxes ever come down in the state of new jersey. we can agree on that, congressman. >> unfortunately our state and local taxes will continue to track upward. stuart: they will. >> but i am fighting to bring taxes down at the federal level. i will keep at it. stuart: congressman, appreciate you being with us. sorry i gave awe hard time. >> that is what i'm hear for, stuart. stuart: democrats won in virginia as well as new jersey. charles hurt, is with us, "washington times," political columnist. the democrat in virginia won by eight points. beat a pretty moderate republican ed gillespie, eight points. decisive win of the is there any way you put a positive spin on this for republicans? >> ed gillespie ran a very good campaign which makes it all the tougher. i think the real, real tough news for republicans though is down ballot where they lost a lot of seats in the legislature.

and they may have lost the house it is going to be a tough road ahead for republicans to bounce back from that. at the top of the ticket, i think it is possible, it is devastating for republicans but it is possible to overstate the meaning of it. you know, ralph northam, you know, when i look back over 40 years i can only think of one time when virginia voters put elected somebody from the same party as the president a year after presidential election. you know going into this, ralph northam was favored candidate. what was sort of amazing there at the end it looked like ed gillespie closed it. but you're right, it is tough. the other headline i would say out of this, you know, race mongering among democratic voters is very effective way of doing it. we saw the despicable ad that ralph northam put out. i refuse to believe that didn't

do awful lot to energize voters. stuart: that was disgrace, flat-out disgraceful. i want to move on to donna brazile. blasting president obama in a new book, saying he has a titanic ego. she slams debbie wasserman schultz. my question, charles, to you, why is donna doing this? she split the democrat party. she has gone after hillary and bill and now president -- why is she doing this? >> i think, for two things. one is, i think that she really does, i think she really does sort of unburden herself with everything that she saw. i think that, there is, a lot of everything she says there is a lot of truth to it. openly talking about hillary clinton's health issues, that every democrat in the country was completely ignoring and pretending didn't exist. i think that suggests that she is probably telling a lot of truth. i think other thing, stuart is, the fact that hillary clinton, the clinton people are done.

stuart: yeah. >> no one fears the clintons anymore. what is really sad for democrats is, apparently nobody, or at least, donna brazile doesn't fear barack obama anymore. and the idea that the two, the two entities that have controlled the democratic party for the past 25 years are completely gone, suggests that the democrat, republicans in virginia are not the only people that are looking at a tough road ahead, and have serious problems. stuart: a mess all around the block, isn't it? charles, thanks for joining us. >> thank you, stuart. stuart: yes, sir. want to get back to taxes, tax cut plan. senator ted cruz has been critical of the house plan. roll tape. >> the business side is terrific but there are some taxpayers who are losing exemptions, particularly in high-taxed 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. stuart: all right. there you heard it. cut taxes for everybody. joining us now, tim phillips, american for prosperity president. you heard senator cruz right there. he is saying look, we want to cut taxes for everybody. i mean ronald reagan did that. are you in his camp? >> we believe that every american ought to see their taxes go down, stuart and we're concerned about this fourth top rate. it is sad to see some republicans buying into this class warfare argument that certain americans don't deserve a break. we should cut rates for every american. the original blueprint from president trump, back in april that you and i discussed stuart, right on this show, it had three brackets. we urge them to go back to that. let every american get a cut. they deserve it, every american. stuart: the republicans seem to have lost faith in the whole idea that you can grow your way out of deficits. you cut spending, you cut taxes, you grow the economy.

the republican party no longer stands for that. it is no longer a reaganesque republican party. what say you? >> there are reaganesque elements to the tax plan. dropping corporate rate to 20% is a good thing. the estate tax -- stuart: hold on a second, sir. i'm sure you read "the washington post" this morning. they're saying that the senate is discussing and considering, not imposing that 20% corporate tax rate until a year has gone by, delaying it. what do you make of that? >> that was using unnamed sources. that would go against the outline agreed to by the senate leadership, house leadership and senate leadership the we believe the 20% corporate rate will happen. that is crucial element of the tax reform. we need to fix the forth top rate. let every american have a cut. candidly i disagree with senator cruz. we need to end the state and local tax deduction. it is unfair for states with

lower property and individual income taxes to have to subsidize the high-taxed states. that is what is happening right now. that is just not share. we ought to end that, but in exchange we ought to lower income taxes for every american. stuart: got it. sir, tim, we appreciate that. >> you bet. stuart: complex situation. let's work towards prosperity. all right. one year after president, after donald trump candidate, historic election win, the trump rally in the stock market is holding, very much so. we're all over that. the senate considering big changes to the tax plan like one year delay of the corporate tax rate cut. oh, watch out. senator mike lee on that in just a moment. ♪ mike and i are both veterans, both served in the navy. i do outrank my husband, not just being in the military, but at home. she thinks she's the boss. she only had me by one grade.

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♪ >> i'm lauren simonetti on the corner of wall and broad with your fox business brief. since the one year after the election, the dow is up 28.5%. the fourth best year for any president in u.s. history since their election. s&p 500 on 21%. how do americans on main street feel about the economy? check out consumer confidence rising 15% since the election, highest level in 17 years. what is at the lowest level in 17 years?

the unemployment rate. more americans get jobs and we add jobs, wages go up, we're feeling better about things too. so it is looking pretty good on historic day, one year since the president was elected. more "varney" and co after this.

stuart: wendy's feeling effect of bad weather. at least 20 restaurant openings for this year, 2017, had to be moved to next year. the stock is down. by the way, they're partnering with door dash, that is a delivery company to broaden their delivery services. makes no difference, down 4%. wendy's at 14. look at the headline from "the washington post." senate gop tax bill could delay corporate tax cut and make other major changes that break sharply with the house plan. top line, may delay the corporate tax rate cut. joining us now, senator mike lee, republican from utah, author of the book "written out of history." senator, welcome to the program. >> thank you, stuart. stuart: can you squash this here and now? you are not really going to delay the corporate tax rate cut for a year, are you? >> the first i heard of that story was late last night. i don't know whether that is accurate or not. we need to get something passed and passed this year. we need to protect hard-working american families, moms and dads, why i'm pushing to

increase the child tax credit, from $1600 in the house version to $2,000 in the senate version. stuart: how do we make the plan, so everybody get as tax cut? at the moment, in the house plan, everybody does not get a tax cut, especially people who pay most of the taxes right now? how can you fix it? are you going to fix it? >> well, i don't know that every single person has to be held harmless. i want to make sure as many americans as possible are held harmless. particularly those on the threshold. meaning, imagine a mom or dad making 37, $38,000 a year. right on the cusp of whether or not they decide to stop working and to on welfare benefits. we don't want the tax code to make it too tempting for people to stop working. stuart: okay. >> one of the reasons increasing child tax credit is so important. stuart: look if most of the people, if the people who pay most of the taxes now do not get a tax cut, and in fact, may get

a tax increase, you don't stimulate the economy. you don't get the kind of growth that you're supposed to get. so what are you going to do about the top rate, 39.6%, which is still there? >> well, 39.6 rate, then you have got what some are describing as bubble rate, which is well into the 40s. accompanied with a very substantial marriage tax penalty, sort of thing we should avoid. we shouldn't disincentivizing people from being or getting married. we have to be bold with this. make sure we deliver tax relief to as many american family as possible. stuart: can you do it? i think we should do it. if you want a reagan style stacks cut, you want to grow that economy, i think you have to give a tax cut to everyone. can you do it? >> i think it is possible. look, in the next two weeks there will be a lot of movement on this. i think that is our goal. stuart: okay. what kind of tax, what kind of growth rate you think we get next year, if the house bill is

what we end up with? >> it is difficult to say. some have suggested that we could see growth rates approaching 3%. if we get the right tax package done. and, look if we saw a growth along that order, we would see significant benefits to the economy. stuart: you do get disappointment here. we were hoping it would be a reaganesque tax cut. everybody get as cut and we grow the economy 4%. that is what we were promised. we're not going to get it. >> certainly i understand that we would love to see growth much higher than that. within a one year, that is relatively reasonable goal to achieve. we hope it would be more over the long haul. stuart: senator mike lee, republican from utah. always obliged. >> thank you. stuart: if you had to guess, where do you think is the best place to retire? turns out it is not florida. we'll tell you which state outranks the sunshine state after this.

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deduction from a million to 500,000, and limiting the property tax deduction is really bad for housing. your response to that? >> so, here is what we know. the best thing for new home sales, for property values, themselves, and sales themselves of your existing home, are when you have a strong economy. our problems have been when we've been at the sub 2% rate. so you look grandfather all existing mortgages. the new cap covers i think 95, 96% of all mortgages in the country. now you have people with more money in their pocket. you have a stronger economy. all that means, home values go up, home sales go up. growing for growth. going for more money in people's pockets, really drives frankly the whole economy, including housing. stuart: if your bill were passed today, what rate of growth would we have in the economy next year? >> so right now we are finally starting to pick up, and above that 3% level.

most economists believe it will grow half a percent at minimum looks like. so moving into that level. not only is very good growth but just a half percentage point generates a trillion dollars for the federal budget. growth helps us. cutting out special provisions moves us back towards a balanced budget in the reform plan as well. ♪

.. will

stuart: one year ago the reelection of donald trump, op became a big surprise for a lot of people appear to be such an upset. many people remember exactly where they were in what they were doing when the news wrote that trump had one.

in particular, i remember "new york times" columnist paul krugman. as the results came in, he wrote markets are plunging. if it is when they will recover from, first pass answer is never. how wrong can you possibly be. on this program, peter kiernan said the market was a screaming buy. how right can you possibly be? one of the successes the stock markets of trump's first year. the stronger 3% growth rate come in the 17 year low for an employment. low mortgage rates, cheap gas and economically, it has been a good year. politically not. obama qa still with us and attacks we've seen does not cut taxes for everyone. i suggest a difficult year. without a robust tax cut, we are unlikely to see 4% growth and if republicans can't get stuff done, they are unlikely to hold on to the house and senate.

you know what that means. speaker pelosi. the third hour of "varney & company" is about to begin. ♪ frankly, we didn't take it seriously appeared we were shocked at his ideas. build a wall, read that trade deals. we are not laughing now. >> they will rue the first sign of trouble, broken antenna off. don't overlook. don't look at it too closely. stand back and get the overall question. stuart: wait until the market goes way down. >> we are going to get to work immediately for the american people and we are going to be doing a job that hopefully you will be so proud of your president. you will be so proud. stuart: dollars a year ago.

the election of president donald trump and it's been quite a year. take a look at the market just since the election. the dow, the s&p, not back, i'll look them straight up 20% from the 30% come out of sight. joining us now, steve forbes editor in chief and keith h. gerald, and chief investment guy. you first. would you call it a trump rally if we have this rally had it not been for donald trump? >> of hillier scented beads hillary clinton bear market. with trump, one of the first things he did as president and his go for areas of deregulation which has been hugely important for the growth we've had this year. business people can get up and for the first time feel in eight years washington is not out there driving into the ground. stuart: key states, can we legitimately say this is the trump rally?

>> i am with stephen and son. this is all about confidence and for the first time in eight years business leaders have it come and made intelligent decisions to their companies forward and that's created a lot of value. stuart: i want everyone to look at this headline from today's "washington post." senate gop tax bill could delay corporate tax cut and make other major changes to brake sharply with the house plan. steve cohen a delay that in the corporate tax rate could i call that a disaster. >> that's an understatement. it shows republicans when it comes to tax cuts get this reform work out of the way. we want to cuts. they had the back bone of cupcakes. they are ready meal to get debate and when you do that cut me loose. they're chipping away every good thing getting chipped away in the corporate tax cut. why don't we be above average in lead the pack.

stuart: we are not. keith, if we do get a delay in dropping not top corporate tax rate from you think it really hurts the stock market? >> i think it does hurt the stock market but not a catastrophic selloff everybody thinks and here is why. most managers can afford to sit this out even if they don't like the politics. companies are leaving them in the dust if they do. they are between a rock and a hard place. they know they don't like it and they are not going to get it but they've got to stay in to win. the market flattened out and gets choppy, but i don't see a crash unless there's absolute mayhem on the hill, which is of course hospital. stuart: now look, democrats are really celebrating after winning governors races in new jersey and virginia yesterday. steve, very bad night for the gop almost across the board. do you see any brightness out there for the gop republicans, free-market people?

>> has come in a sense of the wake-up call. people in virginia, a lot of people disturbed washington can't seem to do anything about it if anything make it worse. the democrat turnout in virginia where people felt a competitive rate turned out republicans didn't so it's a wake-up call to the republicans especially capitol hill. you better get your act together and get some together and get some big things done and he'll be driving uber cars after next year's elections. people are fed up they can't get anything done. they should discover, go online and look at a man named ronald reagan and see what he did on taxes. he understood it. clearly these guys don't. stuart: not a reaganesque tax plan would cut in front of us now. >> this is the kind of thing richard nixon and jimmy carter would've given us. stuart: enough already. and when i get back to the

market. big tax. you concentrate on not paid the five big technology companies are in the stock safe haven even a tax refund doesn't get done? can you put some money for safety and security into the microsoft for the facebook amazon and google of this world? >> that's an interesting choice of words in that viewers my own thinking. very hard to go wrong with those companies. they may go up and not depending what happens at tax reform, but five times as fast as the average s&p company is changing the world come and make a few lines of code different and not a billion customers. to me that is compelling a defense as it is an offense to >> would you agree the big five technology companies are relatively safe haven even after this rally? >> they are. but one of people appear the democrats are going to get power next year, that is going to mean

more pressure on those big five in terms of the pressure groups. the other thing to keep in mind his business people begin to feel that the environment is changing because republicans can't deliver. that will hit confidence. they've got to start delivering. stuart: i want to talk about snap for a moment. that is down big. user growth fell short of expectations. china's 10 cents as an internet company they are as but a 12% stake in snap. it's down 14%. would you touch snap with a 10-foot pole, keith? >> you know, lottery tickets have no place in an investment portfolio at nasa that company is. it is a crapshoot. you might as well be at the table in vegas although you'll have more fun there. stuart: look at the price of oil, please. this week has hit a two-year

high. still $56 a barrel right now. saudi arabia and what looks like a subterranean board with iran. on the brink of war. plus i steve forbes. >> the crown prince would not have moved the way he did, sleeping the way he did if he didn't have the key support of the national forces and the local national guard. if he loses outcome iran will be rubbing his hands in "glee" in the oil markets will be in turmoil. stuart: keep in the last one to you. talk in "the wall street journal" that a hundred billion dollars worth of assets belonging to those people have been arrested in saudi arabia could be seized as the asset. that's a bit of a worry because the assets are in western company stocks. >> well, they are. that's an interest in. we don't know exactly where seizure means because it's hard to take a piece dated doesn't

vanish at the scott holdings in disney, twitter, apple, and the other companies. the question is who takes them over, the new crown prince, sovereign wealth fund, what happens to those? right now i don't think they'll do anything silly, but it does concern me. stuart: good to have you with us today. coming up, another team inventor. his name is steph n. he's in 10th grade. he's created a low-cost 3-d printed prosthetic hand and is brought a tear for us to check it out. that will be later this hour. also joined by the man who used a computer algorithm last year to prove donna brazile was lying about them being altered. those are his words. now the democrats could have easily prevented 90% of the e-mails are being published. he is on the show. more details coming up.

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stuart: an investigative reporter with the daily collar says the dnc could have prevented 90% of those embarrassing e-mail leaks during last year's election. here is lou or is the act. welcome to the program. i've got several questions. number one, how could they have stopped these leaks? zero. you might he could've done what every normal person does and they become a victim of a serious crime in the right to the car. they would not let the fbi servers. most of the e-mails were written after the dnc are to realize they had been hacked. stuart: okay, why did they do it? why did they say we've been hacked. >> is certainly not consistent with what they are telling us now which is the worst thing that's ever occurred. if this is so serious, and why

was your reaction at the time what donna brazile called so casual? we don't know, but they were casual about the whole thing. they responded like their hair was on fire when it happened they didn't care. stuart: when it happened, they didn't go to the cops and say hey investigate. was that because they wanted to cover up some other e-mail you think? >> we don't know, but it certainly doesn't make any sense. either they are grossly negligent or something whole different going on here. stuart: that's what you suspect? that's what you're trying to report on? >> it's got to be one of the two. stuart: are you there yet? have you got to the whole truth yet? >> is revisionist history what they are presenting, this notion that they've been responding swiftly. debbie wasserman schultz was told by capitol police that her congressional i.t. guy was a suspect or she kept him on staff for six months.

this is a criminal suspect that she kept them on staff. how is this a reaction that a person is proper i.t. practices who takes it serious. none of it makes any sense. >> separately, why is donna brazile revealing all of this new book now. she's largely finished and a future that clinton might have been she's drawn the ire just about everybody, bernie sanders included tiered why she doing it? >> you have to take it with a grain of salt. this is someone who did misrepresent e-mails. donna brazile claimed the e-mails were falsified and that's not true. i proved it using computer algorithms. obviously you've got to take it with a grain of salt. stuart: she's in a difficult position, and she is, why reveal it? >> the democrats are so obsessed

with ad hominem attacks that we've been talking about problems at the dnc in this kind of stuff forever. if the republican attack, partisan and not everything is partisan. sometimes you need an honest assessment. donna brazile says the same thing and so she's open up conversations they do need to be had with these honest conversations. stuart: the honesty on openness. steve forbes with us. you've been around a long time. using politics to me and died. why do you think donna brazile spills the beans like this? >> one, she knows the establishments not going to have a role for her anyway. she's now a player in the party tries to reform itself, they may do well in extra selections, but they know they will lose in

2020. i think she's got a role for the future by saying we have a bad pass. we've got a corrector sauce and when they make changes if they are these enough. stuart: that's interesting. thanks for joining us. come back and tell us any new developments you reveal. i'm watching the market and looking at some individual thoughts that are clearly moving. general lack of it, showing a lot of winners come a stock since the election. ge is absolutely not one of them. in the last 12 months, ge has gone down 21%. different story at the chipmaker. huge winners since the election. triple. i didn't see it coming. marriott, the hotel people raised their full-year profit forecast could look down the road and say things will be real nice. business travels as well. only up 7 cents. $120 a share.

wendy's fast food chain profit and sales missed the mark is more competition we hear. lower grocery prices and hurricanes hit the foot traffic in the restaurants dropping 4%. this is from "the wall street journal." at&t executive says the timing of the time warner deal is now uncertain. down goes time warner to .8%. all-time highs this morning for the following companies: apple, these are common dolls, bowling. they've never been higher. once looked back. mcdonald's just a fraction. before that, best bubbles over. now this. where's the best place? it may not be where you think. it is not warm and sunny. it is not an island. we'll tell you the best and worst places to retire to after this.

stuart: i know that one, jimmy

buffett, margaritaville. saw him perform at once. if you're looking for a place to retire to come retire to come its not, not hawaii. we got a survey in its run bank raid. the best place, pittsburgh. the best place to spend your golden years. number two is boston followed by los angeles, denver, providence, rhode island. why did the city score well? low crime, high-quality health care, low cost of living and lots of other singers living nearby. what do you make of this? >> l.a., california, the lesser taxes. stuart: >> death taxes, come on. stuart: funded by the pittsburgh chamber of commerce.

now look at the worst places to retire to. riverside, the bottom of the list. nonsense. in terms of indianapolis, done very well in recent years couple good governors. buffalo from new york state could only reduce taxes and phrack and things like that, a primetime because nobody wants to go there. stuart: have you ever heard of the lake affects? >> only six seats us now. >> you're retiring mayor?

>> i can afford to retire. stuart: let's say we were surprised. shortly, we will be joined by this teen inventor appeared as a 10th grader was created a 3-d printed hand and he's bringing it on the side with us right here. we have seen asking this question, it is a reaganesque? is that what ronald reagan would've done? we will have an answer for you in a moment.

shield annuities from brighthouse financial, allow you to take advantage of growth opportunities. with a level of protection in down markets. so you can head into retirement with confidence. brighthouse financial established by metlife. >> in 1981, our critics charged it would trigger an inflationary explosion, send it interest rates and destroy our economy. we cut your tax rates anyway by nearly 25% and what that helped trigger was falling inflation, falling interest rates and the strongest economic expansion in 30 years. 20 yes indeed, president reagan 1985 talking about the importance of tax reform.

i think he set the bar real high when it comes to cutting taxes and i don't think the current gop tax plan meets the high bar. i don't think it's reaganesque. i wonder what the same question to david rossi, and former trump campaign director. it's a reaganesque in our conventional terms? >> i think we still have a long way to go. the good news is that still in the development dates. in the house, it still trying to be changed and we haven't gotten there yet. >> i don't think they can change it that much. they've got to shoehorn it into this $1.5 trillion cuts over the next 10 years and they can't go beyond that. if they did they need 60 votes in the senate. they can't make out any changes.

>> however, it is just not in the cards. it's not that we can't elect it to do. everyone in our economy, not just sun. that is the fundamental but republicans in the house and senate are trying to grapple with. i'm having a hard time understanding and you are as well. how come we are having such pushback on some of the easy fundamental. stuart: the republican party has lost its way. they forgotten you cut taxes and grow the economy. that's not simplistic economics here that's history they forgotten it. >> i think when i think we need to have some introspection after yesterday. tax cuts now become even more important to get this economy going again. you and i have talked about this.

our economy is zooming. it's ready to go. it needs to fuel. in its tax cuts, the corporate tax rate cut dramatically and it is a cut now it needs individuals, including those at the high-end to get those tax cuts because those are the people that's been predominantly more about savings back into the economy to get the engine going at full speed in full speed and that's what this president has been talking about for a long time. stuart: david, last question. in the back of your mind when you saw the results, did the voice compensates weicker nancy pelosi. divac come to you? >> as a student of history is certainly did. in eight, nine and 10 we see similar trends here and i think we have one year to get the republican act together to do things that we promise. promises made, promises kept as

president trump is talked about that we must get some things accomplished and we will be rewarded at the polls, good policy equals good politics. stuart: thank you indeed did steve forbes is the real fast. did the words speaker nancy pelosi come into your brain last night? >> o. answer yes because i don't want to utter the words you just uttered. absolutely about 30 house seats that are marginal and people are angry and they don't care if they vote for a lamppost. they will take their word of if they are promised with they deliver. stuart: voters in new jersey and virginia did indeed opulent governors last night. joining us now is former white house press secretary. the two elections, new jersey and virginia, were they in fact as the media claims a referendum

on president trump? >> we won't know yet. i wouldn't say that yet. the read more intense passion for republicans across the country. historically the elections have a very mixed record about predicting the future. some years they do, some near sedona and it's about a 50/50 split. stuart: can ask you the same question. in a nasty, ugly little voice heard said as he heard results come in, you're smiling, from virginia and new jersey, speaker nancy pelosi. >> of you except what i just said, history shows it's a 50/50 way. some years they predict a future, senators they don't. the smart thing to do is to run scared and fear that nancy pelosi could win. the house of delegates where they look like they might take it over which nobody saw coming could happen in 10. the attic but this is republicans could pass laws.

they wanted defined by the things they do to pass laws, tax reform, repeal obamacare, get your job done, build the wall. if you do things, you could defined by the things you do. if you do nothing, you could defined by donald trumps tweets. if i'm a republican in the congress, and what my future to be in my hands, not somebody else's. stuart: row fast company saw the referendum vote in maine which said yes, we want an expansion of medicaid. to me, that is the voters speaking directly and the voters seem to want to take america down the european road i'm not the ordinary american road. you agree with that? >> well, there is a huge risk out there that if they plan we are going to have massive tax hike, single-payer democrats

think donald trump committed treason. this is the alternative to republicans getting their act together and passing laws. republicans had the means to do it, but there's a scary alternative vision out there in a hope as sober as republicans have said they do the things they were elected to do. stuart: thanks for being with us this morning. you know the style of our show. we are short, sharp and fast, sort of like combat tv. thanks for joining us. combat tv. earlier this hour, investigative reporter with the daily collar. he told us how the dnc could have prevented 90% of leaked e-mails from being released last year. roll that tape. >> they could've done what any normal person does what may become of victim of the crime and go right to the cops. the fbi wanted to help. they would not let them see the servers. most are written after the dnc realized they had been hacked. stuart: judge napolitano here.

the hack occurred. >> they show up and say can you picture server to find out who's attacking you and they say take a hike. you can do that because the reykjavík done. if you're a witness in the fbi shows up in each other to take a hike, they will use legal means for your testimony pair were nervous to meet a lot cooperate, the fbi says we have more important things to do. some fbi agents would say what are you hiding? stuart: speculate for me. why did they do that? >> we now know of a bizarre relationship with hillary for america committee which is troublesome because of the unlimited nature of some donation in the limited nature of other donations and the potential that they were washed, co-mingled with each other. a very legitimate fear on democratic officials that the fbi would discover that.

>> at the fbi had gotten into the servers and say you can't come in, they might've found information. stuart: i understand relationships between presidential campaigns and republican committees are not uncommon. what is uncommon here is the level of control over the dnc that mrs. clinton herself personally had as a result of this arrangement which she feared might believe might've become publicly known and would've been a tremendous political reaction have the public know that. can you tell the fbi to leave if they don't have a search warrant? if they don't have a search warrant and a subpoena with you, yes and no leave. because of the can't do to shame.

>> i do want your opinion on something i find very troubling. in the state of maine, a referendum agreed to and said yes to the expansion of medicaid. that to me is the voters doing an end around run the legislator and governor and say we want to go european style governor. >> the maine constitution permits the legislature passed the end failed to override the veto and the people said the legislature was right to give us more money. basically, the people were doing the legislature to take from people having to pay the medical bills of those who don't have the money to pay medical bills. a domino effect. drink very troubled by this, steve forbes? republicans have come across as more interested in squeezing money out of pocket to finance tax cut for business. the message in a cave. they let off without instead of

saying will provide better health care so people think what republicans are doing is taking something away. they've mishandled this from the get-go and left democrat to find the terms of debate. that's why you have the referendum in maine. >> if i could build on what steve said come i fully agree. that's why the tax bills thanks. that's what raises taxes and imposes financial burdens on the base of the republican party because republican leadership in congress? the guts of ronald reagan in the 80s. cut everybody's taxes. stuart: i think we've got your opinion. i agree with you. i do fundamentally agree with you. >> the democratic congress. stuart: very soon we are joined by the team who invented a 3-d printed robotic hand. this young man is in the 10th grade and he is here. you've got to hand with him. two more house republicans announcing their retirement

joining a dozen other house republicans who are also retiring. why is that? we are on it. check this out. uber flying cars could arrive in l.a. by 2020. that story is 90 seconds away. ♪ i don't want to sound paranoid, but d'ya think our recent online sales success seems a little... strange? 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.

>> i'm nicole petallides victor fox business brief. big news out of the uber en masse after the ride yelling company is partnering with nasa at this summit in portugal. take a look at what the partnership means about aerial vehicles. an alternative to helicopters. in dallas, the first u.s. city and dubai's first international city by the year 2020. in los angeles by 2020 and will be other companies interested in doing very much the same thing including airmobile, which is a startup company, just to name a few. takeoff and landing vehicles. uber has a lot on its hand at the claim that the company.

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stuart: google rolling out a new feature. they will now show you the estimated weight time restaurant this feature will be available for nearly a million restaurants worldwide. they will do the same thing for grocery store lines as well.

the stock not related to this action, but watch out. i don't like standing in line. i might use that. >> i don't think restaurants would be particularly thrilled. stuart: steve "forbes" doesn't wait in line. >> i wish. mcdonald's does not give you preference. stuart: two more house republicans announcing they are retiring. ted poe, texas, joined about a dozen others. some of them on your screen now. cumbersome sean duffy, republican, each individual house member has a reason for retiring. a lot of retirees, and despite what politics, republican is them, president trump, what is that? >> the last two cycles and republicans had each of those psychos and they're pretty good for republicans.

22 retirees right now, you have half of them running for the senate or governor races and few of them retiring because they were chairman of the committee. he's turned out so instead of going back to the ranking member they say by congressional career and do something else. i wouldn't read into the retirement. stuart: deep-seated discontent with the way it's practiced. a lot of lawmakers say i'm sick and tired of raising money three, four, five hours a day. >> i don't do that and i don't know a lot of members spend four or five hours a day raising money. we want to get more done. we have an historic opportunity. we haven't been as effective as we'd hope to be. people have their individual reasons, but a lot of them see opportunity in the senate in their home state governments and governorship. people aren't afraid to run against democrats.

we feel pretty comfortable as we go on the next cycle. this is a traditional ebb and flow that happens to get retirements. stuart: congressman, asked me if i'm at a now reporting the senate won't release its version of the tax reform bill tomorrow. that is what they are reporting as one website. i would not be good news for tax reform, would it? >> i think that's okay. i would like to get our tax package through the house. i hope the senate would use our tax reform is the base bill. if they want to modify or tweet it, so be it. don't reinvent the wheel. take the work we've done and put your fingerprints on it. stuart: congressman, the problem with your bill is not everybody gets a tax cut. in fact, the people who pay most of the taxes now will still be paying most of the taxes later. in fact, more in tax.

you know that's correct, don't you? >> give me a moment because it's moment because i saw you making that same point on "fox and friends." i was up watching you. here's the problem we have. the 10 pounds of tax reform into a five-pound bag. because we are using senate rules -- stuart: why doesn't the republican party come together and if we can't have this. get rid of the rules and let us have a good tax code. >> to senate rules are made by democrats to prevent the reduction of taxes and spending. i agree with you but i'm not in the senate. i'm stuck in the house. stuart: the republicans run the senate. come on. >> stuart, it is simple. get rid of the revenue neutrality and tax reform. a simple move on the senate park, but they're not. stuart: you need 60 votes in the

senate. no you don't. you don't even have to throw out the whole filibuster rule. just change the rules in regard to budget reconciliation and tax department take out budget neutrality. it gets complicated, but it's easy. to make it clear, don't get angry at us. we are stuck with those rules we have a certain amount of money to donald trump, and i agree with them, we need corporate tax reform. let's do 20% and a little bit left over we driven towards middle income americans and there's no money left over for the top earners. i know frustrates you. stuart: because it's not growing economy for% next year. that's not going to happen. you've got 20 seconds. >> you and i are together singing to a massive wholesale taxer from the senate has to change their rules. i say it every time i can, but i can't change the row so i will do it then and i get the best

package possible for the most american people. stuart: sean duffy committee are good sport and you up early to watch me. appreciate it very much. it is that time. the low-cost 3-d printed hand created by a 10th grader. the young inventor is with us next. who knew that phones would start doing everything?

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comfort on both sides is only $1499. save $300. ends soon. visit sleepnumber.com for a store near you. stuart: we've been building up to this all day. our next guest is a high school student who created a low-cost 3-d printed prosthetic hand. the creator is staff in cattle. he joins as with stephen, chant or at the dwight school in new york. first of all, congratulations, young man. how old are you? i'm 15. stuart: i take it you wrote the software that goes into the 3-d printer to produce this? how long did it take to write the software? >> i've been working nights and sixth-grade. stuart: that's a long time. you perfected it? >> yeah. stuart: you gratis software,

monitor or printer and thus the result? >> the different pieces all have to be assembled. stuart: how does it work? >> every time you open and close your hand, your muscle moves a little bit. even amputees who don't have parts of their hand still have the muscle intact. my sensor picks up on that. and then we wanted a hand movement. okay. do you need to tailor the hand to individual customizers? >> every single part on here can be cut for the users needs. stuart: how much? >> $300 to make. stuart: that's it? most prosthetics for this indication can be upwards of $65,000. stuart: what are you going to do with this creation? it's a good thing. are you going to commercialize it? >> michael distributed to victims of war in countries that

don't have the great technology we doing it dates. stuart: you are a good man and that's a fact. stephen coming to the chancellor of the school this young man attends. is he a good student? >> is a very good student. stuart: dear. stuart: d. at the push of argosy ricard on his own? >> the creativity and imagination is really his passion. we call a spark of genius and he has it. stuart: do i come a spark of genius and he has it. i'm on a timer credibly. really cool stuff. congratulations, young man. you are the young inventor would like to have on this program. making their mark, that is good here thanks very much indeed. pretty good i thought. there will be more "varney" after this. ♪

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stuart: show you microsoft stocks. it is all-time high. i own a little bit of it. 12 seconds neil cavuto will take it away. his special guest is steve ballmer. had a lot to do with microsoft back in the day. five sections to go. i didn't mean to surprise you, neil but it is yours. neil: you didn't surprise me. i'm here at noon. i will try to deal. stuart varney, always good to see you. forget about what happened a year ago? we're all over that. republicans need to look what happened a day ago, voters opt for more government in virginia, more government in new jersey and in maine, republicans calling for expansion of medicaid in that state. regardless of your views on the subject, whether democrats are overinterpreting in this election, in crucial contests what voters opted for was more spending. what voters opted for, was