♪ shops. >> the birthday girl really came just to see pete. rachel: [laughter] >> dagen: surging with the unveiling stocks soaring to new highs as republicans finalize a bill to make taxes lower, but someone here says that it's something else, already being cut, that has our market and our economy full of cheer, as we head into the new year. so what is it? hi everybody i'm dagen mcdowell this is bulls & bears. bulls & bears this week gerri b. smith, jonas max ferris, john layfield along with emily j and jessica. welcome to everybody so gerri b. , what's already on the chop ping block boosting this economy and stocks? >> all that government red tape, dagen, that we struggled to get through every single day. let me give you a couple of numbers that are going to a

noise and astound you. government regulations cost this economy $1.9 trillion a year. put it in perspective that's about 50% of the tax revenue that the government takes in, that's 10% of our gdp. do you know what donald trump has done? cut those regulations by 32%. he's a bigger cutter of regulations than ronald reagan was. if he goes down for one thing in his legacy, it's cutting all of this government red tape. it's going to make the economy stronger. it may even be bigger than any tax cut we could all get. >> dagen: john i no one thing that the dow just among the market gauges is up about 25% this year and stocks were surging even before a tax bill was even really being talked about in washington and why is it? it's cutting all that red tape. >> yeah, i agree with that and look, you had the morgan stanley plan index has the highest

business that we've had since 2007 according to the latest survey because businesses are feeling more comfortable but gerri b. has great numbers but you also look at regulation which by the way has not been dealt with since the 1996 gay business small business fairness act by president clinton which helped boost the economy along with internet boom, we've had 20 something years of regulation stacked on top of each other since 1996. look at the tax code. it cost americans $409 billion to comply with this complexity. 1984 he had 23, 800 pages and you have triple that right now. it's the same for regulations. we are burning american and american businesses with all of this excessive regulations. >> dagen: emily what is it? is it the tax cuts that are coming or the regulation cuts that are already here? >> well i think the regulation cuts are completely under appreciated. a recent business round table survey of chief executives found for the first time in six years, regulatory cost pressure rs they did not list those as their top

cost pressures. that is huge. that is absolutely an impossible to overstate the importance of. it's a massive thing happening even republican administrations in the past we have seen have not dealt with regulatory reform so simply not adding regulations is a huge step for an administration to take and i think it's something we're glad that the trump administration that we're all going to be glad the trump administration tackled because it's not an easy thing to do. listen i'm in washington and telling you nobody here wants to see regulations gone. >> dagen: president trump was talking about for every one new regulation it's 22 for every one that's what he was talking about this past week. >> i mean listen. these are two bad choices for the democrat and me so i like higher taxes and a lot of regulation but i think i like higher taxes more than regulation so i'll go with regulation as well. no, i think also, we're just in creditly optimistic as a nation coming into the businessman presidency that was something a lot of people bought whether you were a supporter of president trump or not we did have too

many regulations just looking into the reaction from small business owners which has been so positive to the red tape cutting i think that that's what has been responsible for this especially when you look at the fact there's such negative approval of the tax bill as it sounds. i know we're going to find the next few days actually what's in the thing but as it stands america is not a fan. >> dagen: jonas, what is it cutting regulations or the tax bill because quite frankly on businesses that create jobs and give us raises they're both huge burdens. >> but let's weigh them properly it's the tax bill. first of all look. there's no question cutting regulations helps corporate earnings. it might not help the air but it definitely helps the stock market and helps earnings. the regulations are great but corporations earn hundreds of billions of dollars a year. if you cut the president i think they cut $8.1 billion in regulations lifetime of these companies that's a 2% corporate tax cut in one year. you can't compare the magnitude of a corporate tax cut to the

stock market with the multiplier of earnings as you can to changing some environmental regulations. that doesn't mean we're not going to get more cuts that have more of an impact but it never matches this corporate tax cut. >> dagen: but gerri b., back to your original point it is astonishing at the burden of regulations that came out of the obama administration over eight years. what they reregulated through obama dare, dodd-frank which was a hold on financial companies. they regulated the internet, nationalized student loans, tried to put the cold business out of business it's astonishing how vast the regulation drive was during the obama administration. >> well you're right dagen. i mean he was just really the exclamation point and it all started back in the jimmy carter days, but apart from the numbers that we discuss, john alluded to , anecdotally i'm sitting here

i'm dumbfounded when jessica says and people like jessica, i want more-- >> how did i know you'd say something about what i said? >> thank you. i would question anyone in jessica's chair to say oh, it was so easy to do business with x government agency. is it easy to do business with the social security administration? is it easy to do business with the department of defense across-the-board even on your local level. >> in defense of what i was saying about regulation. >> go to the dmv, and say oh, that was a pleasant experience. there is no government agency out there that's easy or efficient. >> we have a bureaucracy problem for sure but i wasn't just talking about regulations that affect the business community. whereas also as jonas brought up you're talking about the eps and food regulations and things president trump takes a sledgehammer to that he doesn't know what he's doing. he has people who have no interest in them existing.

>> but how do you manage to assist this society before those regulations increase exponential ly from jimmy carter through obama? how do we-- >> jonas is going to tell us. >> dagen you made the point i'm making in a strange way. look how much the stock market is up since obama these areas that are highly regulated. >> of course to fight these regulations. >> here is my point financial stock is hot as can be with these regulations still in place largely, doubled since the amount they almost went bankrupt before the regulations. my point is if obama raised a corporate tax rate instead of doing any regulations i guarantee you the stock market wouldn't have been up as high as it has gone even with all those obama regulations you might say the market could go four times not whatever it did, but the multiplier with the corporate tax rate with earnings is higher than all the obama regulations and all the one trump takes away combined. >> dagen: but president obama did raise taxes. there were taxes embedded in the

obamacare bill. taxes went up on welfare america so you're getting this one-two punch that is going to basically knock this economy into over drive. >> and the stock market and the earnings multiple with apple stock. >> dagen: go ahead. >> president obama when he first came in at 2.1 trillion in revenue and 2.3 trillion when he left office taxes had gone up about 50%. that amount right there is in excess of 19% of gdp which is what the market can handle but to jessica' point about people not knowing what they are doing dodd-frank wrote the dodd-frank bill. those guys were in charge during the financial crisis. they didn't see it coming and they are the ones writing regulations for themselves not seeing it coming that's the problem with regulations. guys who don't know what they are doing all they did was dealing with nothing that had to do with the 2008 crisis. that's the regulations we're see ing and it did suppress bank earnings. >> dagen: thank you guys and gals, cavuto on business about 20 minutes from now neil what

have you got? >> neil: dagen tax cuts by christmas, bigger paychecks by february. that is president trump's prediction, but will it become a new year reality? plus, stopping some terrorists by changing our immigration process, the white house says that a merit-based system would do it. we are all over it see you soon. >> dagen: thank you neil we can't wait but up first we just told you how tax cuts and deregulation can build up our economy but someone here says those anti-trump texts in the russia investigation could be a real downer for the economy. they will

bears. president trump: it is very sad when you look at those documents and how they've done that is really really disgraceful and you have a lot of very angry people that are seeing it. >> if you have those wal-mart shopping trump voters that peter strzok so derided in his text

messages how do they react to that? do they have confidence in their fbi and department of justice? >> they're going to ask me what in the hell is going on with the department of justice and the fbi. dagen: some americans may be losing confidence in the department of justice and the fbi as newly-revealed anti-trump texts from members of robert mueller's special council team show a bias for hillary clinton and against president trump and his supporters. emily if america loses confidence in our justice system not good, right? >> probably the most important thing of the outcome of the special council investigation is public confidence because if the public does not have confidence in the decision whatever the ultimate decision robert mueller makes is, it's going to be, there's going to be a problem because people won't accept the results of it which could create a massive headache and yes, that could eventually translate to even further lack of confidence across-the-board. our institutions right now are suffering from a declining lack of confidence. it's a huge problem and robert

mueller knows it because that's why he fired of course the man responsible for these text messages did it quietly. we didn't find out because he doesn't want the public to lose confidence in the investigation. it's key. that is the most important part of this investigation. dagen: that individual was reassigned by the way but john what if this country stand on if we don't believe that the laws of the land are being enforced? i point to lady justice, the statue. she wears a blindfold. she's supposed to be impartial. >> what our country stands on is completely different from what our government stands on. look you have a 13% approval rating of our congress and people who believe in our congress, and now put that in perspective. 20% of america believes in alien abductions. 50% larger group but so that's within the factor of crazy and why wouldn't it be? look at what has gone on in our country the past 70 years. the vietnam in jay edgar hoover in the 60s, a president resigns

in the 70s, a president is impeached in the 90s pick your scandal in the 2000s the government has lost the confidence of the people because the government is not worthy of that confidence right now. there's good people there but too many self-serving politicians have found themselves in power and that's why confidence has eroded because americans are smart and they see what our government is doing. dagen: but gary b., from the anti-trump plotting we found out about with the man working on the hillary clinton investigation and then for bob mueller special counsel when his mistress and him were texting back and forth whether it's an official at the justice department whose wife actually worked on putting together that discredited trump dossier paid for by the democrats, we've got to get to the bottom of this or nobody will ever trust anybody in law enforcement ever again. >> well here is the problem though dagen. and it kind of dovetails what we were talking about last week when i said we should move on from the hillary thing and it dovetails with our earlier segment talking about cutting regulations. the trust in government is gone.

it's done. john said like 13% i think overall it's about 18% in government in total. it hasn't always been this way. back in the days of jfk, now maybe that was cammellot and everything but people believed it was like 70% people trust the government and now 18%. that's why we need a smaller government that does less. i agree with the things you brought up these things should be investigated. on the other hand no one trusts the government to get it right so let's just shrink government and move on from a lot of these. dagen: jonas? >> the internet just giving us more insight to people's bias, justice is blind. the point isn't--dagen: i didn't say she was blind. i said she had a blindfold on. >> [laughter] >> i think the expression is she might not like george washington , but the point is if he's in trouble are you being

objected? dagen: he was like you have opinions i don't doubt your integrity are you do you know what? i can't send people to jail or lock them up. that's why it's more important that these individuals who are working in the justice department are working in the fbi show basically aren't as bias as they are. >> well the high tax is very clear that we are supposed to be able to have our political opinions even if you are working in the federal bureau of investigation. what you can't do is you can't act upon it and that's why peter strzok was fired because he was sitting around. dagen: he wasn't fired. >> he's not doing anything and i think jonas to this point here, the text messages of the fbi agents that looked into benghazi , we don't have the ones looking into hillary clinton for all of the iterations of the investigations here. donald trump is undermining the doj every single day. he is promoting a message that is damaging to america and will erode confidence in every single institution and he doesn't care because he knows he's going down dagen: emily final word to you.

>> some of the questions directed to the fbi have been very fair on both ends as a middle ground, we can be critical of the fbi and at the same time we can ask the right questions of this investigation and have confidence in the final decision. dagen: increasingly it looks like the real collusion was against the trump campaign within the fbi and justice department and by the way that wal-mart that strzok went to was in southern virginia so bless your heart. >> [laughter] dagen: thank you guys and gals cashing in over an hour from now liz claman what do you guys have coming up? >> hi dagen. will the final tax cut bill really only help just the wealthy like democrats and even some conservatives say or will it help all americans like president trump says? we debate, you decide, plus a new report shows nearly 5 million americans are in default on their student loans. is this the next bailout the taxpayers should be worried about? i'll see you at 11:30 eastern. dagen: thank you liz we'll be watching but up first some folks right here warn that the iran nuclear deal withs a bad deal

for america and our allies and now our ambassador to the u.n. may have just proved them right. we play the tape. you decide.

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dagen: u.s. ambassador to the united nations nikki haley standing with the recovered missile launched at saudi arabia 's capitol and she says it's undeniable proof that iran is violating the nuclear agreement. gary b., you've been saying all along the iran deal was a bad one. what do you say now? >> well it's simple and we shouldn't be surprised. look, dagen with the history of the world, we have had so many bullies, nazi germany, the soviet union, north korea, iran, iraq, what have we learned time and time again? you can't reason with bullies. we keep trying to and it doesn't work out. the only thing you can do is punch them in the nose and move on. that's what we should do with iran. dagen: john? >> look, i agree. gary b. and i have said this since the very beginning and since john kerry first started, this is a terrible deal. we had four aces, and we gave

them everything they wanted. the toothpaste is out of the tube right now. we have a signed deal that's almost impossible to put sanctions back on. dagen: peace for our time. jess not so much. >> i'll be interested to hear what other people in favor of the deal have to say. we know rex tillerson is sad iran is cooperating, people like former secretaries of state so wait and see but i'm a fan of nikki haley. dagen: emily? >> well i think nikki haley made a very good case she put the evidence out in front of everybody and as time goes on we're speaking that the deal has not proven to be as wise as some people were telling us it would be at the time. nikki haley made a strong case definitely something to pay attention to. dagen: jonas? final word. >> i don't know having a non- nuclear missile but i don't want to get into that. bottom line is you give the best deal possible say they have to pay us to meet the places we've looked over with their oil revenues i'll give you the best deal ever right? they can cheat on that deal

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dagen: predictions gary b., go. >> dagen if you have family christmas means one thing. going to the airport to pick them up. delta up 30% in a year. dagen: john predictions? >> self driving cars artificial intelligence benefits intel chip s i own the stock. dagen: jonas? >> the cryptocurrency currency bubble, gold up 30% in a year. dagen: john? make sense of that please?

[laughter] >> i'm going to buy jonas a self -driving scooter for christmas. dagen: and a helmet and some insurance. >> i don't need it. neil now. president trump: if congress sends me a bill before christmas , the irs, this is just out, this is breaking news, has just confirmed that americans will see lower taxes and bigger paychecks beginning in february. just two short months from now. >> [applause] neil: say it again mr. president say it again. christmas miracle is turning into a new year bonus that could happen, hi everyone i'm neil cavuto. the president very confident the tax reform bill will land on his desk by christmas and that will give americans bigger paychecks maybe as soon as february, so can it really happen that fast