charles: you think back to the crack epidemic. the six and 70s. it's never been this bad. thank you for watching. here is lou dobbs. [♪] lou: good evening, breaking tonight, republicans making progress in their quest for tax reform. senate republicans unveil their tax plan as the house ways and means committee advance their tax legislation. the two measures, however, appear far apart. the house ways and means committee, its chairman kevin brady with us tonight. president trump and his counterpart pledging to work together against north korea's threats.

outrageous comments from president trump's nominee to lead the department of homeland security. kirsten haglund says americans owe it to immigrant children to find a solution to daca. the battle over tax cuts. senate republicans today unveiling their tax plan, legislation very different from the house version that passed out of committee earlier today. now the hard work begins. reconciling the measures if they are passed by both houses of congress. mike emanuel with our report. >> the amendment is agreed to. >> tax reform has taken a critical step in the house passing the ways and means committee 24-16.

>> we know we have more work yet to be done. but this is an historic step and we look forward to sending this bill to the house and ultimately to the president's desk this year. reporter: finance chairman orrin hatch rolled out a that republican thanks reform plan. the house would partially repeal state and local deductions, still allowing up to $10,000 for property taxes while the senate would totally scrap those deductions. the house and senate would reduce the corporate rate to 20%. but the senate would do it after a one-year delay. senate democratic leader chuck schumer is trying to convince republicans from high-state states to run from the house bill. >> senate republicans are

telling house republicans there is no compromise on full deduct built. >> why don't we do it where there is the least opportunity for people to review it. let's do it very fast. speed of light in the dark of night and back rooms without even their own members. reporter: pelosi said tax reform could cost the got majority. speak per paul ryan says the republicans won't lose the house by fixing the tax code. >> this is fulfilling our parole is to the american people. reporter: house gop sources say they feel good about where they are in terms of support for your tax proposal. they realized they will lose some but not all high-tax state republicans. lou: the house ways and means

committee advancing their tax bill. sending to it the rules committee. after that the full house will vote on the legislation probably late next week. that is thanks in large measure to the hard work and long hours of the committee, our first guest is the powerful chairman of the house ways and means committee, kevin brady. his committee spent four days marking up the bill to moist ahead. lou: you did what seemed impossible just a few of days ago. >> it's a big day for the american people. no one thought necessity would see this day. it's been 31 years since ways and means committee acted to fix

this broken tax code. we did it's approved now and goes on to the house. it's a big win for the people sick of the status quo and the special tax loopholes and our jobs leaving the country. i'm pleased for the american people. lou: at the same time you are getting criticism from folks who say it doesn't go far enough. in fact it doesn't go far enough because the suggestion of a deferred tax for business which has been a mainstay of the president's agenda throughout and through the campaign as president. what do you do about it? >> we are tax traits for our local businesses, whether it's a small business or corporation begin immediately after the bill is signed. the amendment today, the final one i offered creates a new low tax rate for those small main

street businesses' up to $75,000. so yes. lou: i think most of people were very surprised by that and delighted as you say because small business in this country gets lost there in washington, i know from time to time. it's small business have the job creators. they are the stuff of which innovation is made. the upial energy that drives the country, you are recognizing that in this bill. and i think a lot of people have got to be thrilled. the national federation of independent business is now on board. >> we work closely with them. pour goal is to deliver tax relief for the mainstream business. we are thrilled to make this big change. lou: there are big changes going on on the other side of the hill. the senate came up with a 7-bracket proposal.

they deferred corporate taxes -- tax cuts -- not taxes -- this is a real collision of two different views of what tax reform really means. >> i have been doing it for a while. i don't think so. there are some differences. but there is so much more we have in common. i think that's because we sat down together with president trump this year, spent months working towards the same target. put it up on the wall. the house is moving and acting. the senate bill drives toward that same target. while there may be some differences, we are shooting at the same approach. i think it's healthy, i don't see anything we can't work to hit the target president trump and us together put for the american people. lou: after this legislation, let's assume it's passed by the house and the senate.

conference gets to be real interesting. who do you want to declare as the winner tonight in. >> you talked into that. the winner is the american people. for three decades this massive tax code. can you imagine:people being able to file their taxes using at postcard-type system? able to come feet anywhere in the world including on main street. that is just a game change, i think for the american people. they have been waiting too long. lou: let's hope you and the senate get right and the president is eager to sign it. congratulations. chairman kevin brady. a lot more to cover here tonight. a busy day in washington. we'll tell you all about that as well. stay with us.

who does president trump blame for decades of trade deficits with china? the president rightly blames his predecessors for that trade imbalance. president trump: i do blame past administrations for allowing this out-of-control trade deficit to take place and to grow. lou: we take up the president's efforts to fix the foreign policy mess he inherited with dr. sebastian gorka next. that republicans defy president trump, delaying the corporate tax cut.

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lou: president trump continues on his asian diplomatic tour. today in beijing urging china to constrain north korea. president trump: china can fiction this problem easily and quickly, and i am calling on china on your great president to hopefully work on it very hard. i know one thing about your president. if he works on it hard, it will happen. there is no doubt about it. they know. lou: president trump shifted the

blame for our trade deficit with china. president trump: trade between china and the united states has not been over the last many, many years a very fair one for us. i don't blame china. who can blame a country for being able to take advantage of another country for the benefit of its citizens. i give china great credit. but in actuality i do blame past administrations. lou: past administrations, past presidents for the largest trade deficit among all of our trading partners. strategist to president obama, author of the best seller "defeating jihad," dr. sebastian gorka. let's start with that wonderful moment where the president acknowledges that he doesn't

blame china, but rather if you will the fools who made it so, that is who accepted 40-plus years of trade deficits specifically with china who permitted the deficits to rise to record and the largest levels of our trade partners. >> the president has this kind of supernatural instinct or capacity to read the audience and couch things in term that they understand. when i was with him in youngstown, ohio in the steel valley in spoke in one way that was resonant with that audience. when he's in front of congress it's very different. today he spoke in terms that a chinese audience would understand. he spoke in the words of sun su, an asian strategist. he says i don't blame you for playing us for fools to your own benefit because you do that for

your own national interests. but it's clear where the strategic blame is to be laid, on naive policies 6r of past administrations and massive businesses who look at china as a market and don't think about the ramifications, that's why we are where we are today. lou: let's turn to the fact that there is and maybe somewhat exaggerated because of the trade mission of the companies of this president in china. the two countries announcing a quarter trillion dollars in trade deals. that is even if it's enlarged a little because of the political dimensions of the president's critical trip, it's a massively impressive day in trade. >> i told people that voted for

trump last year, people who supported. even if you really are for him, you have no idea how successful he's going to be dip make itally, not just in terms of business. it's hard to choose right now the last 9 months which record is more impressive, what he has done so decembe -- what he has o mess particularly and the to be markets and what he has done in terms of international relations. invigorating nato. lou: it feels to me like we have a trump presidency, it's one millions of us envisioned when he was running for the office he now holds. thank you, god. trump and putin. do you think they will meet? >> i hope so.

because there needs to be a face-to-face meeting to make sure that man putin also understands what the president is doing, and that this isn't president obama. this is a very different president. he's a serious man. he's a pragmatist and a patriot. and putin needs to understand just as everybody else. you don't mess with the united states under the comond of president donald j. trump. lou: the wall is slow going and people are getting res -- are getting restive. we are being told that we are to blame for children being brought here illegally by their illegal immigrant parents. this created a firestorm, your

thoughts about that. >> i'm disturbed to say the least with regards to this individual. she had a track record before coming into government of being pro open borders. this is not who secretary kelly was. it's not who the president is. there is one thing that's not negotiable and that's the building of the wall. miss neilsen needs to get on message, otherwise she won't be representing the president's intent. lou: what does it tell you that a nominee for that high office, responsible for our borders, would make such a remark urging amnesty and saying the american people are the ones who are to blame for the plight of those illegal immigrant children who are brought here by their illegal immigrant parents?

>> clearly, if this is what she believes, she has fallen victim to the narrative of the left. this is what hillary clinton was saying in private high-time speeches about no boredders in the western hemisphere. miss nielsen needs to understand it's not hillary who is president. your thoughts as to what we are going to see coming up, two tax bills. is this a process that's going to lead to the trump agenda's tax cuts or something quite different. >> i think it's comparable to the gipper's sayings. what did ronald reagan say? i will take 70% of the loaf and come back or the other 30% later. this is a marker that has to be laid down. we have to get thanks reform

started. lou: be sure to vote in our poll tonight. the question, do you believe the republican party deserves to keep its majorities in the house and the senate. cast your vote on twitter @loudobbs. we would like to hear from you because there is extensive grumbling after those two quite different versions of tax cuts emerge from the senate and the house. follow me on twitter and lou dobbs. follow me on instagram @loudobbstonight. breaking news that could have major implications for the balance of power in the senate. alabama candidate roy moore denying allegations that he had sexual contact with a 14-year-old girl 40 years ago. he's calling it baseless and defamatory.

the volume on the big board 3.7 bill shares. equifax earnings taking a big hit from the company's massive cyber attack. the company also reporting it received subpoenas from the,sec over employees' sales of stock just before the announcement. california doesn't just want to protest our national anthem. it wants to get rid of it all together. we'll be right back. ♪

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lou: california chapter of the naacp taking aim at "the national anthem." they want to get rid of it all together. they claim's racist and anti-black. they are pushing state lawmakers to remove "the stars spangled banner" as our national anthem, at least in california.

♪ o say can you see reporter: president woodrow wilson recognized the star spangled banner as our national anthem in 1916. though heard all the time, the song itself rarely drew much attention until -- nfl players started kneeling. that's when the naacp took a closer look at the words. >> it's anti-black people and it's become something that's dividing us. i'm looking for a way to bring us back together. reporter: francis scott key wrought lyrics as he watched the british bomb the for the in baltimore.

>> we don't readily hear it. so why not just take it out. if it's offensive and hurtful, take it out. reporter: historians strongly disagree about the context of those lyrics. hireling and slave referred to the blacks freed by the british. the british manipulated blacks to fight with the unfulfilled promise of freedom. >> it's a song. >> keep it original. it's like messing with somebody's picasso art because you didn't like how her nose is too big. reporter: the naacp is hoping a member of congress will sponsor their bill to kill or change the

snagsal anthem -- "the national anthem." lou: former chief strategist for president trump steve bannon calling for mitch mcconnell to resign. we take up the -- intransigence of the gop leaders on capitol hill. for this fearless daredevil leaping off a mountain in italy isn't quite enough. stay with us. we'll be back with a video and much, much more. and i can do it with what's already within me.

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i am totally blind. and non-24 can make me show up too early... or too late. or make me feel like i'm not really "there." talk to your doctor, and call 844-234-2424. lou: chairman 69 house judiciary committee to be the latest establishment lawmaker to say they won't run for reelection. goodlatte joins 18 other incumbent republicans in the house and senate who decided to exit their currents positions. and you can't make this up. first a juror in the menendez corruption trial asked the judge

what is a senator. then 9 jury asked to leave an hour early in their deliberation to the avoid traffic jams. now a dismissed juror is speaking out saying she expects a hung jury. she says if she had stayed on that jury senator menendez would have been not guilty on every single charge. she spoke out after she was dismissed and replaced by an alternate because she had a vacation she had to begin. she told the judge about it when she was chosen for the jury in august. joining me, charlie hurt, and the editor of the daily caller. the republican party is putting up two versions of a tax reform plan neither of which comport to

the vision of donald j trump, the president of the united states. what are we to make of it. >> the vision of the president which is to get the economy moving to cut tax for businesses and not in any way hurting the american middle class with a tax increase seems to be straying away from the point. you have the senate and the house purchase suing pieces of legislation to make it fit through the senate's that nip la tough and hard business rules. ing what option does senator mitch mcconnell have available to him? he can go nuclear if he wanted to. but he decided not to. debt rid of the legislative filibuster which is why we are left with a strange budget maneuver to for fifth a tax

bill. lou: charlie, your thoughts on this. particularly the senate legislation seems to be the product of true consternation and turmoil within at least the minds of the senate about whether to ever do anything that might even appear to be following the trump vision and the trump agenda. >> my greatest hope from the moment donald trump arrived on the political scene is that republicans possibly they might learn something from him, they might learn how he sells things, learn how he campaigns, learn something from this guy. because he has a lot to offer. after all, he beat 18 of them in the primary and went on to beat the most of powerful political figure in the last 25 years in a general election. there is a lot to learn from

this guy. i'm afraid republicans in congress are not learning those lessons. you keep it simple. you simplify the tax code and lower taxes for every one. what we are seeing here, it's getting more and more complicated and complex. nobody has any idea what's going on here or what this is going to do. but everybody is sure there will be some tax hikes in it. that's not the republican way, and they are going to ruin their brands if they don't wake up and simplify this and cut taxes and move on. lou: their intention we would assume is to hurt president trump some way. the national media is taking care of that chore as they viciously and unrelentingly attack him. let's turn to china where the president actually said i don't blame china for the runaway

trade deficit for the united states. our presidents have effectively -- these are my words, not his. have been damn fools over the course of decades which have allowed the chinese to run up trillions of dollars in trade surpluses. >> this is the same case we saw in the u.n. you as world leaders represent the interests of your country. you saw today, he goes china and says, if i was in your position i would do the same thing. i would take advantage of the lax enforcement and create a trade deficit for the united states because that's to the advantage of the chinese government. by suggestion and implication he wants to reverse that. i think what you have seen is both he and president xi have been very cordial to one another. chain today rolled out the red carpet in a way they never did

for president trump. thinlds closed doors. the white house is saying president trump is being forceful in the negotiations with president xi base seefs an imbalance in our trade that needs to be corrected. lou: roy moore. the post found four women who were willing to go to appear under a headline charging him with behavior unbecoming at the very least. and one instance, wrongful behavior toward a young lady. what do you make of it? the man is 70 years old and been in the public eye forever. suddenly the "post" found these folks. charlie: i'm always sceptical of stories like this in a campaign season. the story that main woman who was named in describing what happened to her as she said when she was 14 years old, i found it

very disturbing and very believable. the details she recounted. maybe roy moore is right, maybe this is the most of orchestrated fake news attack i have ever seen. but if it is true, it's absolutely disgusting and he belongs in the democratic party if what was alleged is true. lou: vince, your thoughts? >> anybody who acues somebody of this has the right to mount a defense. we know he's talking defamation suits. that will be useful in terms of finds out in public what happened. but not in time for an election. i think beth republican party and roy moore need to reckon very quickly with what the next steps are. lou: innocent until proved otherwise should still hold even in our modern culture.

but does it strike you as passing strange if i may use the expression in pertaining to a senate seat in alabama? that it's coming at this juncture in a campaign. this man ran for office numerous times. has been in the public eye in alabama and the post finds four folks. >> i would have been even more suspicious if it had before the republican primary. i don't know why that is. that's just -- lou: that's your personal preference. during the primaries. charlie: but when you get down there and read the woman's explanations for why she didn't come out before now. her descriptions of the details of things, i found it chillingly believable. but you and vince are exactly right. he should -- if he wants to

defend himself, i believe everybody who is innocent until proven guilty. it seems strange why this woman under her real name would come out and draw this level of scrutiny to her own life. and she is apparently not a political hack of any sort. but very sad stuff. very ugly and sad stuff. lou: thank you both. be sure to vote in our poll tonight. do you believe the republican party deserves to keep its majorities in the house and senate? cast your vote on twitter @loudobbs. now please roll the video and watch as this base jumper -- there he goes, one, two leaps of a massive wall in it are you. twisting, flipping, turning his body. you have got to couple with somebody who can do it better.

that's amazing. landing obviously safely because it's doing it a second time on video at least. small businesses on board with house republicans and their tax plans. the senate planning to delay corporate thanks cuts for a year. ken blackwell will join us to discuss whether congress will be able to deliver on tax cuts and put them before a president who will sign it all next. ♪ at lincoln financial, we get there are some responsibilities of love you gotta do on your own. and some you shouldn't have to shoulder alone. like ensuring your family is protected, today and tomorrow, no matter what the future brings. see how life insurance from lincoln can help start protecting your family's financial future now, at lincolnfinancial.com.

lou: joining us tonight, ken blackwell, form advisor to trump's transition team. you talk about -- you know a lot about taxes. but we are talking about politics here. this is a peculiar arrangement that our that and house financial committee and ways and means committees have come up with. what do you make of it is it defines of trump or the best they can do or worst they can do. >> i don't know why they stayed locked in the arcane rules that

handcuff them. it's a pregnant moment for something big to happen in terms of accelerated growth and uplifted incomes for our workers and families across the country. why they handcuff themselves is confusing to me. i can't even begin to try to explain it. but i do know this. they have to get something done. what they said out here in the midwest, get it done, buddy, get it done. that's what they have to do. they can't excuse this anymore. lou: do you believe if the house and senate fail this time to deliver for the president a legislative agenda item, tax reform, that probably the house will lose its majority. >> that could very well happen. they stumbled and bumbled and

blew the opportunity on obamacare. now if they miss an opportunity to give us an historic thanks cut that not only gives us economic growth but begins to do something with a stat that we looked at during the campaign, that is labor participation. we need to drive that labor participation rate up and get income lift for working families across this country. as you and i talked about before, we have $2 trillion or more parked offshore. we need to create an environment that brings that capital back home to fuel the economic growth and prosperity in an historic way. lou: it's a tough proposition because we have to incentivize

those familiar companies to buy back stock like they did under the bush administration. senate republican swamp creatures taking up tax reform. joining us, jason chaffetz. [lance] monica, it is absolute chaos out here! gale force winds, accumulations up to 8 inches... ...don't know if you can hear me, but [monica] what's he doing? [lance] can we get a shot of this cold front, right here. winter has arrived. whooo! hahaha [vo] progress is an unstoppable force.

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lou: in our online poll we asked you do you believe us days election results are a warning to rinos to get behind trump agenda? and 84% of you said yes. jason chaffetz, how does it feel to be out of the swamp? >> it's so good. and to not have to raise money. even better.

lou: as you watch your former colleagues in the house produce a tax bill. your thoughts on it and its quality and likelihood of being passed by the house. >> if the democrats and nancy pelosi was the speaker we would be talking about tack increase. i'm frustrated about the timing of this. i am disappointed of the republicans passing a $47 trillion budget with essentially no cuts. i thought we were the party of fiscal discipline. i thought we were terribly uncoordinated in the launch of the senate announcing its thanks package while kevin brady is passing an important thanks reform package out of ways and means to have the senate say

dead on arrival. lou: the senate is a little obstreperous under mitch mcconnell. how overstated is his defines, if you will -- defiance, if you will, of president trump. >> orrin happen is the senate of the finance committee in charge of passing the healthcare bill which never came out of their committee. and tax reform. i don't understand why we are pulling up on thanksgiving and we are just now rolling this out. when donald trump said make america great again, i thought we were going to do it right now, not a few years from now. moving it a few years from now is ridiculous.

i don't understand that. lou: why is in no embarrassment on the part of these good folks on capitol hill. the suggestion of a year from now, is that a clever maneuver or is oh tearic moment of artfulness on their part? it is silly. >> they claim what they have to do is live under the rules of reconciliation. but they are the same body that created the rules of reconciliation. they set the $1.5 trial level. when i was the chairman of the oversight committee, it was back in november or december and the leadership came to us and said we are going to work hard and have that repeal and replace on the president's decks when he gets sworn in. by about st. patrick's day we will have that thanks bill ready to go. i don't understand why it takes this long.

i do believe they will pass the thanks bill out of the house. but by a razor thin margin, i'm talking a person or two. the people in the northeast just aren't going to do it. lou: watching all these committees and the russian collusion investigation producing nothing. nothing has been produced since going back to fast and furious as a result of a congressional investigation. why in the world in your judgment is it so difficult for a republican congress and senate to do the right thing, get mule per out as special counsel, get these idiotic investigations that have been under way for a year and a half, including that of the fbi, to wrap it up? >> tuesday you will have the attorneys general appearing before the house judiciary committee. they will have everything from

fast and furious, the irs. lois lerner. the emails, the special prosecutor, all of that. lou: that's it for us tonight. good night from new york. kennedy: house and senate leaders reveal plans to cut your taxes. did bill clinton say the president had a hard time telling the truth? delicious irony. grab a fork. it's time to feast. this whole thanks reform ruse is utter nonsense. as the shell game shifting your money is turning both houses against each