christmas song. >> good wing wencelaus. >> that is a tavern song >> neil. neil: it is yours. neil: after this tax cut goes through you wouldn't be able to afford figg pudding. >> you're right. neil: you're a good pa patriotic american. i don't know. maybe we issue a swap thing. i go to britain. you say here. >> never do that. neil: they are set to vote on the tax reform. president meeting with cabinet right now. we're expecting a spray from that room momentarily. a big white house event around 3:00 p.m. eastern time the president hopes to have the house vote out of the way. this is perfunctory. the vote is there. he will even talk to the press about that that is a moment to

live for. we have chad pergram with the latest on capitol hill. >> how are you? neil: very good. >> the house has started final debate on the tweaked version of the senate bill. they had to pull things out to match budgetary rules in the senate before we passed it in the wee hours of the morning. the house had to be in alignment. when they made the changes the house bill and senate bill did not sync up. we will have in 20 minutes, what will be the final, final vote for the tax bill. then it will be shipped to the white house. the question is when president trump will sign it. neil: i was asking you the question, when? i always think these things can be like closing on your house that you buy, if you don't wrap up quickly something could very, very, very wrong. i spoke to senators yesterday, chad, if we had our druthers we would sign this fast.

>> here is the problem there. is a rule on the hill called capitol hill that is budgetary, paygo, pay as you go. that is important term. if they sign the bill this calendar year, they need waivers to run the deficits worked out very, he soon. the next moving vehicle is the interim bill to keep the government funded. i'm told here in just the past few minutes, they might not be able to wedge those into that bill. if the president waits to sign it until calendar year 2018, then those cuts could come, not the tax cuts, the cuts to entitlement programs if they don't waive the pay-go rules wouldn't kick into 2019. it might buy time. they will have celebration at the white house this afternoon an another celebration if they sign it next year. that decision yet to be made. the track is very short to get it done this year and the pay pay go provision. neil: could anything screw up

this house vote? hold that thought. the president is now meeting with his cabinet. >> thank you very much. i appreciate everybody being here, cabinet meeting and this looks like it will probably be our last cabinet meeting until new year. who knows, you never know what happens with cabinet meetings. we have had really great and productive ones and this will be one of celebration because of what took place last night. we had a historic victory for the american people. it will go through final passage today in the house. then the congressman and women and senate will be coming over. republicans from the senate. unfortunately democrats don't like to see tax cutting. they like to see tax increases. they like to complain. they don't get it done unfortunately. they complain a lot. we will have the republican senators come over. we'll have the republican members of the house come over. we'll have a news conference.

and people are starting to see how great this historic victory was. the passage of the massive tax cuts and reform, it is, a lot of reform in there, but the tax cuts supercede. i said very specifically used the word tax cuts. for 34 years they have been trying to do this, and they haven't, they used the word reform. there is reform. i said we'll be talking about tax cuts, the heart of our bill is a tremendous amount of relief for the middle class, including a doubling of the child tax credit. and a nearly downing of the standard deduction. that is going to be tremendous for people. they will start seeing results in february. this bill means more take-home pay. it will be an incredible christmas gift for hard-working americans. i said i wanted it done before christmas. we got it done. i want to thank all of the leaders. i want to thank mitch mcconnell. i want to thank paul ryan and some other people. we'll go through the official

ceremony in a little while when they come over to the white house. but you have, we have tremendous amount of talent in the house, a tremendous amount of talent in the senate, i can tell you that. they love this country. the bill also includes a new family tax credit for dependents. it makes the vast majority of family farms and small businesses exempt from the estate tax. the estate tax was killing the farmers. they were forced to sell farms at bargain basement prices. they don't have to do that anymore t brings overseas corporate profits back to the united states. our plan also lowers the tax on american business from 35% all the way down to 21%. that is probably the biggest factor in this plan. we've become competitive all over the world. our companies won't be leaving our country any longer because our tax burden is so high. now we're down toward the lower end of the spectrum as opposed to being the highest. we were the highest.

it is really above all else it is a jobs bill because these corporations already coming into the country but they will start pouring into the country and it is about jobs. they will build great companies and it is about jobs. we created two million jobs since the election. the stock market, you see at all-time high again. that is 86 times since i got elected, 86 times we're at all-time high. unemployment is at a 17-year low. we have liberated the american economy from washington overreach, cutting 22 regulations for everyone new regulation, the most in history by far. we have cut hundreds and hundreds of regulations, allowing people to have their businesses, work their businesses and hire people. and we still have plenty of regulation, don't worry, we have plenty of regulation. regulation is not the worst thing but overregulation is, was stifling in our country. couldn't do anything. we have unleashed u.s. military might on isis and today the

coalition to defeat isis has recaptured nearly 100% of the territory once held by the terrorists in iraq and syria. we're close to 100%. we'll be finished pretty soon with the isis situation in those two countries. and we're making it very difficult for them to come here, believe me. we're, we're fighting that very hard. homeland security and our great military. we're restoring immigration enforcement at levels that our country hasn't seen before and taking the fight to criminal gangs like ms-13 where we're decimating those animals. they're animals. what they do is horrible, horrible. we're making immigration system work for americans. but we're cleaning out towns of those ms-13 gangsters. that is why we're calling on congress to fund the border wall. we're getting close to. we're working on that. we have a great wall, we put up, as you know, six different

varieties of wall. we want to see through. we have a lot of help from the border patrol and from the i.c.e. agents. we're getting their input on the wall because they, who knows better than them but we want vision. we want to be able to see through who is on the other side of the wall. we have some wonderful prototypes that have been put up and, i may be going there very shortly to look at them in their final form. and we'll be building the wall and we'll be doing lots of other things. we will very importantly be funding and closing the loopholes that undermine our enforcement. we will get rid of chain migration an the visa lottery program. we have a lottery program where we take in a lottery people from other countries, in some places we are bringing in some very bad, bad people. and through chain migration and through the lottery, the man

that ran over people on westside highway in manhattan a month ago, two months ago, he came in through the visa lottery. we don't want this group of people anymore. people met him in the neighborhood. they all said he was horrible, nasty, mean. wouldn't talk to people. they could see it coming. they actually could see it coming when they went back to his air where he lived. we take in the people on lottery, they're not putting best people on the lottery, common sense. they are not taking best people into the lottery so we can send them over to the united states. put the worst people in the lottery. if this case he might have had up to 24 people come up with him indirectly. aunts, uncles, cousins,

grandfathers, mothers, and come in because one got gets in, you bring the whole family. not a jobs either, not a lot of working jobs. we're rebuilding our nation. we're rebuilding our confidence and we're standing in the world as a different country. we're being respected again. today the entire world can see that america is coming back and america is coming back rapidly and strongly. they see that with what is going on economically. this is even before the tax, the tax cuts have been approved. i have to say, that a lot of people thought the tax cuts have been approved. i heard a couple of our folks, steve, gary, a few others say this morning, and they're thinking that the market hasn't fully digested what they have got here. i don't think the market has even begun to realize how good these are, for instance, like full expensing and other things. we have things in there that are so incredible. one of the great things is

bringing back perhaps $4 trillion back into our country. $4 trillion of money we couldn't get back because of our tax code and because of regulation. we were unable -- that money can flow back into the country to produce jobs and go into our companies where they want to spend it, they want to spend the money here. they weren't allowed to. americans are filled with excitement in the future. optimism like they haven't seen. you have seen all the charts. enthusiasm for the incredible possibilities that lie ahead for our country. at this wonderful time, it's a blessed season. we have a blessed country. we're renewing our bonds so loyalty to each other and to this nation, this nation is is a nation with tremendous spirit again, you see that. housing confidence is the highest it has been in many years. it just came out. manufacturing, the highest level of confidence they have had since they started doing it many years ago. and business, it has the highest level of confidence. so, we're doing a lot of things.

so we'll be meeting again. the cabinet will be meeting again shortly. but, we have done a job like no administration has done. we get the final passage. we are waiting for that final passage. as you know, we do have to go through one more vote in the house. it is being done virtually as we speak. so, when that's done, you add all of that to what we've done in terms of regulatory, in terms of military. we as you know, we are going to 700 billion for military. we are rebuilding our military. we can not have a weak military in this time and age and we're rebuilding our military but when you add it you will up together and you add two things, the individual mandate is being repealed. when the individual mandate is being repealed, that means obamacare is being repealed. because they get their money from, from the, then the

individual mandate is being repealed. , how long do we have massive tax cuts and and tax reform, we have essentially repealed obamacare and we'll come up with something that will be much better. whether it's block grants or whether it is taking what we have and doing something terrific, but obamacare has been repealed in this bill. we didn't want to bring it up. i told people specifically, be quiet with the fake news media because i don't want them talking too much about it, because i didn't know how people -- but now that it is approved, i can say the individual mandate on health care, where you had to pay not to have insurance, think of that one. you pay not to have insurance. the individual mandate has been repealed. the other one is anwr. a friend of mine in the oil business, i can't believe it, anwr, they have been trying to get it for 40 years. 40 years, and i didn't know that we have anwr, we'll start

drilling in anwr, one of the largest oil reserves in the world. for 40 years the country has not been able to touch. that by itself would be a massive bill. that will be one of our biggest, one of our biggest oil reserves. it is one of the biggest in the world. puts is in a level that we're not even at now and we're doing very well in terms of, as you know, energy. but anwr by itself would be a big bill. that is when it hits me. they said, they have been trying to get that, the bushes, everybody, all the way back to reagan. reagan tried to get it. bush tried to get it. everybody tried to get it. they couldn't get it passed. that just happens to be here, and we did that at the request of the two great senators from the state of alaska, which is a very special place but i will tell you anwr is a big, big deal. it is not ever mentioned by the press that was fine until now. now you can mention it.

so we're going to have tremendous energy coming out of that part of the world, and people have wanted to do it for 40 years. with that i'm going to ask ben carson, you can stay if you want, because you need the prayer more than i do i think. you may be only ones. maybe a good solid prayer, they will be honest, ben, is that possible? then we'll ask you to say grace. thank you. >> our kind father in heaven, we're so thankful for the opportunity and the freedom that you have granted us in this country. we thank you for the president and for cabinet members who are courageous, who are willing to face the winds of controversy, in order to provide a better future for those who come behind us. we're thankful for the unity in congress, that presented an opportunity for our economy to expand, so that we can fight the

corrosive debt that has been destroying our future. and we hope that that unity will spread even beyond party lines, so that people recognize, that we have a nation that is worth saving. and recognize that nations divided against themselves can not stand. in this time of discord, distrust and dishonesty we ask that you would give us a spirit of gratitude, compassion, and common sense. give us the wisdom to be able to guide this great nation, and in the future we ask in the name of the father, the son and the holy spirit. amen. >> thank you, ben. beautiful. thank you very much. mike, like to say a few words? >> well i appreciate it, mr. president. as i told you last night shortly after the senate vote, i know i speak on behalf of the entire

cabinet and of millions of americans when i say congratulations and thank you, thank you for seeing through the course of this year, an agenda, that truly is restoring this country. you described it very well, mr. president, from the outset of this administration we've been rebuilding our military, putting the safety and security of the american people first. you have restored american credibility on the world stage. we're standing with our allies. we're standing up to our enemies but you promised economic renewal at home. you said we could make this economy great again, and you promised to roll back regulations, and you signed more bills rolling back federal red tape than any president in american history. you have unleashed american energy. you have spurred optimism in this country that is setting records but you promised the american people in that campaign a year ago, that you would

deliver historic tax cuts, and it would be a middle class miracle. and in just a short period of time. that promise will be fulfilled, and i just, i'm deeply humbled as your vice president, to be able to be here. because of your leadership, mr. president, and because of the strong support of the leadership in the congress of the united states you're delivering on that middle class miracle. you have actually got the congress to do, as you said, what they couldn't do with anwar for 40 years. you got congress to do with tax cuts and american businesses what they haven't been able to do for 31 years and you got congress to do what they couldn't do for seven years in repealing the individual mandate in obamacare. i know you would have me also acknowledge to people around this table, mr. president, i want to thank the leaders in congress once again for their partnership in this. i want to thank your outstanding

team, your secretary of the treasury steven mnuchin, for gary cohn, ivanka trump, great legislative team, all members of this cabinet who partnered to drive your vision over the past six months after you laid out the vision for tax reform. but mostly, mr. president, i, i will end where i began and just tell you, i want to thank you, mr. president. i want to thank you for speaking on behalf of and fighting every day for the forgotten men and women of america. because of your determination, because of your leadership, the forgotten men and women of america are forgotten no more and we are making america great again. thank you, mr. president. god bless you. >> thank you very much. i also want to thank all of the members of the cabinet and i think we have a tremendous team.

next year we'll go on to do some amazing things. we're making ourselves very strong again, right, general? >> we are, sir. >> strong, he was not so happy that first week when i met him. he was saying it is really depleted. we're building it up rapidly. we'll be at level like never before. members of the cabinet, you've been outstanding. i like the message nicky sent at the united nations. for all the nations take our money and vote against us at the security council or they vote against us potentially at the assembly, they take hundreds of millions of dollars, even billions of dollars and then they vote against us, we're watching those votes. let them vote against us. we'll save a lot. we don't care. this isn't like you used to be they vote against you and you pay them hundreds of millions of dollars, you don't know what they're doing. nikki, that was right message you sent yesterday. i have had a lot of good comment on it.

people are tired of the united states, people that live here, great citizens, that love this country, they're tired of this country being taken advantage of, and we'll not be taken advantage of any longer. thank you awe very much. thank you. [shouting questions] >> how will the tax plan cost you a fortune, mr. president. >> thank you very much. everybody. neil: okay. there you go. looks like that wrapped up there. the president just a couple minutes ago, addressing what seems to be just moments away from signature historical achievement. certainly first real legislative accomplishment. that is a sweeping tax cut. call iting the biggest in history. technically that is not the case but certainly substantial in of itself. big drop in the corporate rate, what will be beneficial, he says, the middle class in this country and, sighing that he looks forward to that becoming the law of the land soon. didn't put a timeline exactly on that when he would actually sign

it. the house because of some weird parliamentary issues has to revote on this right now in some slight changes that were made. it will not affect the overall course of the law itself or what will be involved in those tax cuts. some of it is simple as just the title of it, but that is coming up momentarily in the house of representatives. it is not a do-over in the senate. it is what it is. once that is done, it goes to the president's desk for signature. that is only thing they haven't agreed on when he signs that. fox news analyst, gianno called well-and deirdre bolton. market is up a little bit, confidence this could be a legislative wind at the president's back when he attempts even bigger things, welfare reform, struck instructs, what do you think? >> i mean they needed this win, right? this, especially the president and we to say mitch mcconnell, right, succeeded where the repeal of the affordable care act, obamacare, had failed in

july. but what i heard you say is so important. this is huge bet on what u.s. corporations will now do with the break they have been given, right? to go from 35% down to 21%, and this one-time repatriation fee, if you are microsoft, amazon, any tech company with billions overseas, apple, can pay 15.5%. neil: that is incredible. >> going forward, you will not pay taxes on any foreign revenue. neil: they will all bring the money back. >> there is a lot of incentive, but in fairness brings us up to the way other industrialized nations function but to me the big question what will the companies do with the cash? there is lot out there, over a trillion dollars according to estimates by goldman sachs. does this mean they bring back the money and hire people and invest here? or 65% in a survey, just one

survey done by bank of america, merrill lynch, 65% of u.s. corporations polled by them, you know, we'll pay down some of our debt. like when you were a kid, somebody gave you 100 bucks and you owed your buddy 10 -- neil: touted to do the things they're expected to do, anything would be good, jonathan, whether they buy back stock, pay down debt, pay shareholders but i think republicans as well would be disappointed if these companies don't hire more, do stuff like that because they put, that is these republicans their heinies on the line here. i'm sure they're expecting some bang for the buck from these companies. >> certainly. key example, fedex, said we will use the money to hire more people and our pension system this is unachievable by president donald trump and republicans in the house and senate. very historic, if i may say, to

mirror your point especially on obamacare, the mandate, this is first installment of something we've been talking about for a number of years, the repeal and replacement of obamacare. neil: that was a very big deal, any other venue, if it was stand alone measure would have been revolutionariry. >> 100% and what is really interesting about this, people seeing on cable news, oh, they're kicking grandma down the stairs with repeal and replacement, mandate, rather, in 2014, there were 7.3 million people enrolled in obamacare. you know how many paid the penalty for the mandate? 8.1 people, more people paid the penalty than was enrolled in obamacare in 2014. what is also interesting, i've been seeing on cable news, people saying republicans are just giving crumbs. wealthy taking vast majority of the money away or getting the vast majority of the money and what's really interesting to me in 2009, we had this thing called stimulus checks.

do you remember those? neil: yes. $800 stimulus check. >> there you go. 400 for individuals. 800 for couples. got the money back with holdings directly from their job. democrats said this is great. president obama did something really amazing. now getting $2,000 back, maybe more for some, who knows, and you're saying this is crumbs. that is very interesting. neil: very good point. i guess the impact will be how soon people get their hot hands on the cash, how soon they will spend it or put it to use. that will be when the pedal and metal hit each other. that is when people will be able to decide whether the improvement in their net is going to be big enough for them to change their behavior, certainly their attitude about this what do you think? >> well the administration says this starts getting into paychecks in februaryed when irs goes through processing and your

forms so it could be pretty soon. i think the administration right now has the benefit of passing this tax overhaul at a time when the wind is really at the economy's back. unemployment is already down to 4.1%. we've had a pickup in growth. stocks are hitting new highs. neil: can there be much more of a pickup after that? there are a lot of firms, you reported on this very well, that say, no it is not reflected in that, there is another at least five to 10% pop based on new math and multiples, what do you think of that? >> i don't think at this point we need to see much of an additional pickup. if we can sustain the 3% growth numbers we got in the second quarter and third quarters, that is huge achievement. many economists say it is not possible when the workforce singeing a and productivity is very slow. even sustaining what we had the last several months would be a big accomplishment. that is why i say these tax cuts come at a time when the wind is kind of at the administration's

back. you know, now it is interesting because the polls suggest that households aren't very excited about this but you know, you get unemployment rate down below 4%, you get some more 3% growth, you get stock prices hitting more new highs, i think their views will change. neil: no, history indicates a lot of these tax cuts, deirdre, you and i were getting this into couple days ago, are very unpopular. this is actually more popular than reagan's or jfk's, came to fruition sadly after his death. very low expectations going in, the proof in the pudding kind of thing that people see something measurable. >> there is a lot of criticism that the republican party hasn't really sold it or explained it well enough to the american people. i was looking at "wall street journal" poll that was done with nbc saying something like 40% of the polling audience think this is bad idea. house speaker paul ryan saying yesterday, in february, when people see the money in their checks, they will feel good and

then -- neil: it will have to be substantial. if it averages 40 or 50 buck as paycheck, that is no small change, i don't want to minimize it, will that make the difference? >> if we look back to when reagan, the tax cuts passed with reagan and people saw benefits and became popular, polling, people mention the polling -- neil: didn't help in the midterms that year. republicans lost a couple dozen seats in eight at this because of that -- 82 because of that delay. >> '84 and '86 when the legislation passed. that was the difference there, you don't see this happening now? >> since the civil war only three times where a president in his first term hasn't lost seats. certainly there may be some losses there, but if we look at republicans who put donald trump and republicans in office in the majority, over 60% of them believe this tax package is good thing. look at the numbers. neil: john, what do you think of

that? certainly polls show people, show me, show me what i'm going to get out of this. they also indicate, the president himself, still has daunting poll numbers to deal with, even with the improving economy, even with the incredible markets. why is that? what is your sense of that? >> our polls are pretty interesting in this respect. what they show is that the president gets decent remarks on the economy and his marks on the economy have held up even while his overall approval ratings have declined and there is good reason for that. the economy is doing pretty well right now. so i think there is a disconnect between what people think of the president and his overall performance and how they see the economy doing. they're saying it is going pretty well. in terms of the polls and what they say about these tax cuts, you know, we've written an awful lot over the last few months what this does to state and local deduction and to people in blue states.

you know there is a lot of moving parts in this bill. so there is a lot of uncertainty i think among people and a lot of distrust in washington. as you say, the proof will be in the pudding. if people look at their paychecks in february and say, hey, my withholding went down instead of up, then, maybe they will be more forgiving than the polls suggest they are right now. neil: we shall see. guys, i want to thank you. i want to bring in a key player in all of this, south dakota republican senator mike rounds. senator, good to have you. >> thanks, appreciate the opportunity. neil: could anything weird happen in the house in this revote, senator? you know, a lot of people say you never want to test fate twice but obviously because of these parliamentary infractions, whatever, they have to do this again. what would happen or potentially could go wrong or anything? >> i really don't think anything will happen. i think they get the vote n i think it will be complete. republicans develop very good about the direction we're moving

in 2018. we feel very food about this tax bill. look, there is no such thing as a perfect tax bill. in this particular case i think we made some really good progress and i think the house feels the same way as well and the mooedifications that were made is miniscule. it is couple small wording items and that's about it. one item we were trying to do to provide more tuition assistance, or at least some taxis stance, some recognition of people of people that put their kids through parochial school. that came under fire a little bit by the parliamentarian. other than that that everything is ready to go. neil: are you troubled a lot of democrats saying, including one now you have not done anything, that is republicans to ease the debt, you're piling on the debt? i find that a little odd given the fact the debt grew exponentially over last eight years. so now it's a big concern but be that as it may, you did have a chance, that republicans had a

chance to even slow down spending, address entitlements, do something and that just wasn't in the cards here? >> let me give you two parts. first of all the appropriations system here is broken. today there are 12 appropriations bills. if we pass all of them if we actually vote on all of them, which we've only done four times in 43 years, we only actually vote on 28% of the entire budget. the rest of it, that is all medicare, medicaid and social security, and interest on the debt is all on autopilot. we don't even vote on it up here. so that is one of the reasons why the debt continues to move forward. the second part is we can't fix this mess we're in, until we bring in additional revenue. we can slow down spending but we'll never get caught up with the debt unless we have additional revenue coming in. the only way to do that is grow the economy. that is what this tax bill is all about. it not only provides some confidence building for middle

class and low income folks but giving them a direct tax relief plan but the big part of this is getting businesses back to being competitive on international basis again, getting those jobs back into the united states once again, getting infrastructure, investment back into the united states once again, rather than overseas. neil: when i talked to senator rob portman, we don't have to play the interview again but he essentially was telling me, if i had my druthers neil, would i have the president sign this fast. don't let time slip by. i know about the pay go thing and why might make better sense to sign in 2018. i liken it to closing on a house, anything could go wrong if the closing is delayed or a document doesn't turn up or whatever. are you in the camp, says sign it now, mr. president, don't risk anything or take your time, mr. president, we've got this. >> i would like to see him sign it now but not for the same reason. i want people to have security.

i want them to understand they will get a tax relief plan. the sooner we get that back in on w-4s when they identified what their actual tax rates are in the february paychecks they start to see real, cold hard cash coming to them because they won't have to pay as much taxes on their with holding. for me matter of providing clear evidence and gaining confidence of the american people so we continue with rest of what we need to do. president trump is right on, when he says we have a lot of stuff up here we got to fix. regulatory issues here. tax issues here. he is right. and, what he is doing right now is pushing envelope. and i think there is a whole lot of republicans that want to respond in positive manner. get the tax thing behind us. move on. continue to address the regulatory reforms we've got to do. let's not be afraid of tackling immigration. we need a good, solid immigration policy in this country. along with that, take care of health care once again.

in doing health care we have to talk about the cost of health care and i think its appropriate to talk about pharmaceutical reform as well. neil: all right. senator rounds, thank you very much for taking the time, sir, we appreciate it. hope you have a wonderful christmas. senator mike rounds. all right, a vote is going on right now, this is the revote after technicalities were observed by senator bernie sanders, parliamentary manuevers saying, wait a minute, you have done things that just are not allowed to be done when something moves from the house to the senate. so we're kicking it back to you to vote on again. expect roughly the same amount of votes here. we have 12 republican nos yesterday. they are expecting 12 republican nos. they are not expecting this to be difficult, rewording a couple things, adding a couple commas, who knows but this measure is said to be perfunctory. you never want to jump the gun. we'll monitor this. once it is official, nothing kicks back to the senate, it just awaits president's signature. the question on that is when,

after this.

neil: where do we stand on this? this is perfunctory but its important, these things are never slam dunk, revote in the house after technicalities were revealed by senator bernie sanders in the united states senate when he was taking a look at this. he is quite the parliamentarian himself. he looked at commas, ts are crossed, is dotted, i'm over simplifying here. he didn't like what he saw, there were technical breaches that had to be fixed. they fixed them i guess. they get kicked back to the house. they need to revote. no need to revote in the senate. apparently they address that. the house votes on that, goes to the president's desk for signature assuming this passes. it will take 217 votes in this house right now given one absence, possibly two. we had about a dozen republicans voting fence this yesterday, all democrats voting against it. we're looking at roughly the same vote. to market watcher scott martin,

paul schatz on this. markets barely budging one way or the other. scott, what do you think of that? >> well, neil, it is probably just the calm nabe before the storm. i think the storm is the upside, frankly. we'll see dow 25-k by end of the year. maybe not by christmas as i originally predicted but i think in the next few days. i think the real key, neil talked about with previous guests today, what happens with trillions of dollars parked overseas? what exactly do companies do with the money they bring back stateside? is it hiring? maybe. it is definitely stock buybacks, definitely dividends and maybe mergers and acquisitions not talked about very much. that is all stuff to benefit your 401(k). that is stuff you should be excited about if you're investor in the s&p 500. neil: to scott's point though, it is not necessarily beneficial to companies acquired, they lose jobs. i wonder what will happen there? a company with a big stake in

disney, as a result a good number of people will lose their jobs? >> well, that's right. disappointing part, scott's right, m&a hasn't been discussed. while it will be great for stocks and the stork market if the tax bill was really passed to help the middle class and the average person and ceos, will not put the money to work, they will not hire, they will not build new plants, they will not invest in technology and cap-ex that will be disappointing. i'm ecstatic we passed something i'm disappointed we didn't go far enough. special interests got way too involved in this. they muddied the waters. people will see a tax cut but could be a whole lot bert. markets are responding appropriately. think think is more upside left. listen, we've had such a great run this quarter, it wouldn't be unusual to see a little paws to die guess it. even one or 2% which you haven't seen in months. neil: i almost would welcome a pause, wouldn't you, scott or no? this is unabated, you are in the camp of morgan stanley, i think goldman, some of these others,

bank of america that over the weeks talked about another five to 10, i think in morgan stanley's case, 20 or more% run-up in the market as a result of the new multiples as a result of the tax cuts, what do you think? >> yeah. i mean, neil i would love to see it, i'm sure paul would too, the market go up every day but that is not realistic. it is good for markets to backfill and different sectors and allocations that happen on day-to-day market movements. let me throw some math at you. looks like s&p 500 the will create next year $150 earnings. in economy growing 3 to 4%, with the tax cuts behind us right now, you will see a 20 multiple on those numbers. if you take numbers on $150 of earnings looking about s&p at 3,000. i believe those predictions are very right on and i think that is definitely in the cards considering the growth a lot of these companies have ahead of them. neil: guys, i want to bring charlie gasparino into the mix on this big victory for the

president, charlie. talked about a lot. it will be the wind at his back, things he wants to do infrastructure, welfare reform all of that you're pretty good at history as well. usually presidents get legislative victories get additional legislative victories, maybe not of the same oomph but what do you think? >> it is hard to tell. first this thing has to be digested and let's be real clear here, listen, lowering corporate tax rate is a must, right? we had highest in the world, one of top three highest. we're about where we should be. neil: say nothing of all of this money that is set to come home. >> where this gets murky with the economy, the real economy, not just the wall street economy is this, ceos and corporate boards have a fiduciary responsibility to their shareholders, not to their employees. corporate buybacks, mergers and acquisitions that doesn't necessarily spread the wealth to employees. as a matter of fact, in the case

of mergers and acquisition often lead to downsizing. neil: absolutely. >> corporate buybacks -- neil: there is delayed effect. we learned that from history. >> remember this bill in of itself from the corporate side will not be factories just popping up all over the place even though it is good. here is one other thing, neil, the personal side is destimulative. giving people who don't pay a lot of taxes a small tax cut. they are screwing a lot of people that pay taxes. neil: our mutual friend stuart varney is patriot, he is getting gauged. he likes it. maybe you should get with the program. >> good for him. he was born in england. i was born in the bronx. neil: he is paid in pounds. he has no idea what is going on, absolutely. paul, do you get a sense there is a delay? there is nothing wrong with companies doing whatever they want with the cash and you could argue for the markets that is good to scott's earlier point, but there will be some disappointment, will there not, if we don't see up tick in jobs,

and in short order? it comes at a time better than full employment, you argue that old saw is 5% is full employment we're now at 4.1 but what do you think companies are certainly under pressure certainly from republicans who got them all these goodies to deliver them some jobs, right? >> no doubt about it. 4.1, if you want to call full employment, every employment report we're finding more and more people coming into the workforce. i totally agree with you. there is a lot of things disappointed in the tax bill. we left carried interest totally alone. neil: i don't know how the hell that happened. >> campaign contributions. neil: you're right. billionaires who were pushing that pup by, got their way. sorry, paul. >> i can see going back to do a fix on that later. i think both sides will succumb to public pressure. to your point it would be very disappointing, corporate ceos, charlie mentioned it, their fiduciary responsibility is to

shareholders first. if they get things accomplished with stock buybacks, raising dividends, m&a they're doing the job if the stock price comes up. listen this, was supposed to be passed for middle america and it will be a shame if we lose this golden opportunity. look it back to the kennedy tax cuts in the '60s and the reagan ones in the '80s. stocks kept on going until they reached that kind of point of froth, actually to 18 months later. i wouldn't be shocked if we get at least another six months out of this, we haven't even had a 5% pullback since february of' 16. almost two years. we're in the melt-up phase. that always scares you as scott, always scares you as an investor, yeah it is great, market can go up every day, eventually when you get the melt-up phase you pay the piper really quickly. neil: you talk about, charlie, paying the piper, a lot of people are looking at this saying what will individuals do once they see their net paycheck

difference? average of 40 bucks a paycheck, if you're paid every week, 65 to 80 if you're paid every two weeks. what do you think? >> it depends. who is getting tax cuts? basically people don't pay a lot of income tax. i keep saying this. neil: you keep alienating those people. >> i'm not trying to do that. what i'm trying to say, understand what the winners and losers here. corporations won tremendously, right? you take their rate from 35 to 21. private equity won huge. they pay as much as some guy that makes, some cop from long island or something. they pay as much as middle class person in new york state -- neil: thinking that crowd benefits with the other stuff. >> they benefit with a lot of stuff, right? real estate real estate industry does real well. look who does too well? 2,000-dollars check from some guy in texas doesn't get you

that much. look who gets screwed, homeowners in california, new york, new jersey, other places that have state and local taxes. neil: twice, thank you. i do want to keep looking at this here, we're not done yet. they might have to extend this a little bit not everyone is in place. if they are, i don't know what they do in the technical event they not amassed votes they need. shaping up almost identical to the house vote yesterday. right now we have 10 republicans, virtually all democrats thus far voting against this. now 11 republicans. there were 12 yesterday that voted against it. charlie brought up good point about effect on real estate. we're noticing in no and low-taxed states like texas and florida, prices seen uptick, and activity have gone up. not so much in high-taxed states. that could be coins dentsal or sign of things to come. let's to to trump real at this's katrina cammen what she thinks

of that. what do you think? >> majority of real estate investors are set to benefit from this lower tax burden that was added a few days ago, and what it's proposing, until the dust settles and we're able to understand the details we really won't know the true effect. but as of last night the proposal -- neil: katrina, human nature to me, you're the expert, but it just seems why would i want to buy a house in a state that has high taxes, certainly high property taxes and i'm limited how much i can write off when i look certainly down the road in other states where that is not the issue and i get a lot more bang for my buck? >> there are two different topics here of the first the fact that now homeowners are only allowed to deduct 10,000 property taxes which is not a good thing for states like florida, where you were able to deduct your entire property tax bill. neil: just pockets of florida.

outside of palm beach, all of that, that is hardly the norm there. >> right. for instance, you know some areas which i focus on here in south florida, let's say that a homeowner has $17,000 tax bill, last year they would be able to deduct the entire amount. neil: right, right. >> this year, this 2018, it would only be, they would only be allowed to deduct 10,000. talk about the real estate investors because that is really the big controversy that occurred two days ago. the new provision added to the tax bill now benefits people investing in real estate. controversy was is that many people benefiting were the trump family and a lot of people that sit on the senate and the house but actually it benefits every real estate or majority of real estate investors whether you own a local pizza shop or whether you're one of the major real estate investors and business. the difference is that prior to this, you were actually taxed on real estate income according to

your marginal income level. basically what they're proposing a standard percentage for real estate income. we have to remember the middle class generally experienced a lot of their wealth through real estate investment. this could actually be a really good thing. i think it will incentivize people to invest more in real estate moving forward. >> but it is a contradictory, contradiction in terms. if, why would someone, maybe you invest in commercial real estate which middle class people generally don't have money to do that but if you're a homeowner, in new york, new jersey, she just mentioned florida, so just not us yankees up here are getting crushed here, this bill is a net negative for your home. you can not -- neil: less so in florida. >> less so because the property taxes are generally lower but they still -- neil: there is no state income tax. >> no state income tax but maybe they max out at 10. this does hit in a lot of

places -- neil: these could be for you, some unforeseen consequences? >> listen i think there is great stimulative stuff here particularly on the corporate side. the individual side is a mess and if they think -- listen this, is nothing like what reagan did. reagan lowered it to 28%. neil: they're not making exponential leap lower here. we're at 214, 217 because of one representative is absent or missing, 218. they have done it. this happened. this is going to be the law of the land. of course not officially the law of the land until the president signs it. same 12 no republican votes as yesterday. same, actually 180 plus, no democratic votes yesterday. you still have a numberer, about 18 have not voted. this is padding the number they needed. this now moves on to the president of the united states. the question is when. katrina, back with you on fallout from this.

you think in real estate right now, we don't know. i mean you answered a very good point i hadn't thought of, even in states with favorable tax environment, albeit pockets of high property taxes, it could be, it could be weird, right? >> well, to his point he is mentioning he is absolutely correct to say, that for instance, i bring up florida because this is market i generally focus on is, prior to this, you were able to deduct all of your property taxes against your income. what they're proposing now, we'll see if this gets finalized today, is that the most you would be able to deduct is 10,000. obviously that is not a good thing. i'm not for that. because in the real estate market one of the big things you're able to deduct your property taxes and the interest from your mortgage which is whole another topic with regard to this bill. neil: right. >> what i was referring to, is one of the things that created a lot of controversy in the news yesterday was the fact that this provision was added with regard to real estate in income based

on investment and i'm seeing more and ordinary people from doctors, lawyers, investing in commercial real estate. in fact investments towards multifamily units is actually been -- neil: one more second. i want to listen in to speaker paul ryan. >> the motion is. dodd. without objection, the motion to reconsider is laid upon the table. [applause] the all right. it is now official. the revote it is, it is for the tax cut. >> motion from the gentleman from florida, mr. dunne, surpass the rules, clerk will reported title of bill. >> hr 1159. bill to provide for continuing cooperation between the national aeronautics and space administration and the israel space agency and for other purposes. >> the question is will the house suspend the rules and pass the bill as amended.

members record their vote by electronic device. this is a five-minnesota. neil: a lot of this is just gibberish here. nothing stopping this. it will now just be official. the president is going to be holding a tax reform ceremony we're told 3:00 p.m. eastern time at the white house. katrina, talking about this in the real estate fallout. charlie was as well. always consequence we don't plan on, a lot of people when reagan cuts became to fruition, there was a lot of delay in bang for the buck we figured ronald reagan was one-termer. we know consequently that was not the case. there was anticipation for george bush tax cuts, it didn't live up to hype early on. >> i think he did -- neil: they staved off what could have been much more severe recession. having said that, it is all expectations game now. this goes in with people having low expectation. >> now, listen, if the market keeps going up, which you think

it will, this is generally good are to the economy. i just make one point about the notion of tax reform which this fails miserably, when katrina mentioned before homeowners might get screwed in certain states but there is a great provision here that will help you if you want to invest in commercial real estate. it makes investing in commercial real estate better, more favorable that goes against very notion of tax reform. what that is supposed to do, stop the government giving you incentives to do certain things. lowering the basic rate, so you keep most of income and allowing the economy to dictate your decisions, rather than the government. that is where this thing fails miserably. they don't lower top rate. they keep it the same. they say no basic local and state tax deduction which is fine but should do that when you lower the top rate. they say there is bunch of carveouts where people make money. private equity business, they

make a lot of money. commercial real estate business, we love you too, you can make a lot of money. there was something crazy put into the bill about master limited partnerships, incidentally put into the bill by texas lawmakers. there is a lot of master limited partnerships of energy companies. that is the antithesis of tax reform. i'm a conservative. i understand what reagan did. i like what trump ran on. this is vastly different. neil: legend has it, folklore has it, reagan afterwards, wanted to be substantial, so across the board, rates that benefit business and individuals down to the lowest paid, says i don't want them to come back and sort of gun the tax to advantage the tax tables whether you're a savvy business mogul, of course we didn't have hedge funds in the day, or just, a average working joe or joanne. he wanted to take that impetus out of this so you were not

playing tax game? there are ample reasons, i can't imagine number of of people who want to become a pastor entity or whatever take advantage of it. charlie: yeah, just think about it. i can convert myself through a pastor entity rather than convert myself, i don't really employ anybody. i can make a lot of money. i can't because it's obvious reasons. >> after retried. train to you now, charlie: if he took the top rate down to 20%, you would not have to have a separate thing for pastors, right? why would you? neil: you make it a moot point. by the way, dallas jfk. >> these guys did something very cynical. they give a benefit to private equity. they gave a benefit to real estate, commercial real estate.

neil: i saw the method and the limitations they had with this new feature. charlie: if you screw republican homeowner and nonviolent, which are doing dream to any democratic state. transfer screw the private equity guy if you want to be fair. and they weren't fair. neil: gargoyle your private equity sources. charlie: by the way, they'll agree with me. neil: i want to weigh in with "forbes" publisher tax policy expert and independent women's foreign manning. let's talk what charlie was addressing. we don't know by and large a matter of time before the president signs it. we will be in our paychecks early next year and more to the

point fully realized by february. at that point, given all the advance buzz, would he think people do? >> i thoroughly agree with charlie skepticism on this. they'll find a lot of disappointment among a lot of voters when they realize they've got no game with the weather and in fact are paying for the cost of their people are getting. that said, when the 2018 elections roll around in the economy has had another solid 3% plus growth here and the markets do well, perhaps not as well as they did in 2017, and i will be hard to top, the republican doing pretty good shape. overall people will feel good. their initial perception will be negative. neil: when you say initial, the first paycheck with the increase won't be enough or not but they thought it would be?

>> well, some people's taxes are going up. charlie pointed out saving $500 sierra or $1000 there isn't really going to think that's much of a deal. neil: okay. steve, what he think about? >> i would say first of all, the reason people won't be disappointed if the individual part of this piece has been so relentlessly reported as negative in the price that i think people have a misconception of what they're going to get now. when they don't see taxes going up and they do see a tax cut, neil: that's an excellent point. if there is an upside to it, if you've heard a into your head, you could be right. >> that's especially true in a blue state. the fact of the matter even the tax policy center, to 90% of

middle-class americans are going to be getting a tax cut here. that is not the perception out there. they might not be a tax cut that moves the economy, but let's be frank. the corporate side of this is what is supposed to really grow the economy. it's almost undermined itself in being so relentlessly negative about this. neil: that's a very good point. i do think there's something else going on here be on the game of expectations. how you can play fast and loose with the numbers. there is no such thing as fake or real news here. in the initial years come in the vast overwhelming majority of americans will get a tax cut. where it gets a little bases in the outer years for the credits go away and if they're not replaced you will be paying more in taxes. depending on your point of view in your timeframe, you can cut it off after five years getting a tax cut or you can go out

seven years with those credit that have expired suddenly reappeared or come back to haunt you now all of a sudden it's changed and people are paying more. again, in the time zone you look. what happens let's go near term longer-term. >> a lot depends on whether you're using a static model for dynamic model. keep in mind the corporate income tax-cut will have a huge effect on our economy. changes in gdp growth can mean bigger wages cut bigger paychecks aside from changes to the individual tax code to your near-term look at the polling. ultimately you will be an advantage to republicans that the initial expectation right now are so low in a lot of polling ask people how they feel about president trump's tax plan, i feel about the republican tax plan. not an unfair way to praise --

free set. if you have an opinion of president trump or republicans, but my color your opinion. neil: at the time of ronald reagan, look back at him as the most great popular fatherly, grandfatherly figure in the middle of a recession when republicans were losing seats in the midterms in 82 he was hardly that enduring figure back then. >> these ideas in the tax reform bill quite in the corporate tax rate them and these are things that have long enjoyed bipartisan support. it's unfortunate democrats can't see the benefit to many supporters, but ultimately when people see the benefit in their paychecks, people another $500, $1000, most middle income families will notice the difference and makes a big difference in their ability. neil: keep in mind that's over 52 weeks.

>> it still makes a difference coming meal. neil: believe me, i'm agreeing with you so we can be on the same page. back to the point steve is making about how this can be so banged up in the media and so dismissed you can easily play with a tax cut by talking about how people will pay more, how your taxes will go up and then you have to put in parentheses on the timeframe, do you think people who are skeptical once they do see it in a chat, back to that point near term will be less so than the midterms more in the favors and we appreciate. >> i'm still skeptical on man and one of the things that hasn't been commented on is the generational differences on the impact of the tax cut. my home is fully paid for because i live in california and we have prop 13, i have a tax basis set in 1994 at about one

fifth the tax basis that i would pay now that i bought my home. if you're young, you don't have the option. you will find republicans have really screwed themselves with millennial story long time. neil: they've not been rock stars at that particular demographic. we are getting the president commenting on the house tweeting a few moments ago i promised the american people a big beautiful tax cut for christmas with final passage of the legislation come exactly what they're getting. i would like to thank the members of congress who support the historic village represents an extraordinary big tree for american families, workers and businesses. stock market is that a record high and will soon be on the rise by cutting taxes, reforming the broken system. now pouring rocket fuel in the engine of our economy. america is back to winning again and growing like never before a great spirit of optimism sweeping across our land. americans can rest assured that

our brightest days are still to come. of course he could find us at any moment or wait until the new year. do you think it makes a difference when he does? >> relay this was essentially the major legislative achievement on its first year. to me that is significant because with obamacare, one of america's has-been he hasn't done much. if we look mostly a policy including deregulation he's done quite a bit, but frankly a major achievement of legislatively in your first year, that's actually an important thing to want to promote. neil: very well said. that is all separate. could happen at 12:01 a.m. connell mcshane on capitol hill following all of that. what can you tell us? connell: it's interesting.

and it is on to the next thing here in the pressure on both parties to you're going to try to avoid the government shutdown by friday night at midnight. on the republican side, fresh off the tax cut success the government shutdown is the last thing they would want but the pressure is on to get as much as possible into the continuing resolution. >> i've been talking to members of the freedom caucus and members of our conference is the speaker majority leader have to make sure we've got the right package put together for disaster relief coming california wildfires. but then also make sure our defense department is properly funded. connell: best the gop. democrats by. democrats ideally with a different issue essentially making a choice about whether they are going to shut down over the so-called dreamers. people brought here legally when they were children into the country as undocumented immigrants have said they won't

be a daca fix. the farmer protesters in and around the capital complex all week long getting in the democrat here about this and make a mess -- making themselves known. as across the street at the senate office building last night about to go on tv might below our location tim kaine .sys. this will give an idea that pressure the the democrats are facing. watch. the >> are democrat senator champion for dreamers -- [inaudible] connell: senator kaine staff can talk to the protesters, heard their concerns. other key democrats have said they are not going to use this as a reason to shut down the government. so it doesn't look like total given the way and it looks like the hostile press and in the rooms and a bill that will go to the senate to make changes.

the two parties go back and forth. all the while the clock is ticking as we get closer to midnight. even if daca is not an issue, we keep an eye on the paygo rules. essentially the tax cuts have to be paid for in the senate's budgetary rules. if they are not waived, you have some issues here and there is possibility they could stand in the way there. a lot could happen between early wednesday afternoon in late on friday night. neil: that is one of the arguments right now, maybe the president delaying signing this in the new year. connell: are, people were wondering why he wouldn't sign it this year. they have to be waived and maybe get them signed before the calendar science in the bill have to wait until the new year. neil: it is a lot out there. thank you very much, connell mcshane. the president already taken a victory lap on all this. he is going to be addressing the

nation reporters a little less than two hours now. karl rove on what he has to say and more importantly may be how he has to say it.

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doubling of the child tax credit and a nearly doubling of the standard deduction. that is going to be tremendous to people. they will start seeing results in february. this means more take-home pay. it will be an incredible christmas gift for hard-working americans. neil: the president doing his best to say what we did here is historic. he will have very big implications, good ones for american taxpayers. the former bush 43 deputy chief of staff karl rove. i think in oppression and push himself he overcame a lot of doubt. this is number the paper at redmond on, give away to the rich. i'm surprised historically that is the reaction initially tax cut to get when they first come up that first come up that day. i think the whole process will go? >> well, you are right. that's when he republican conservative supply-side is as a

rich and in this one on the corporate side, and they are painting all corporations as evil. these are where a lot of americans work, ignoring the benefits to small business that occur in the pass-through. look, step back for just a minute. the president is behind the eight ball. we passed the tax cuts in june 2001. the bill that was passed with 55% plus approval, 35% disapproval. this one is upside down because the white house is not doing an effective job of advancing the bill in explaining it. it needs to do a better job just as the past of sending pennies to step away from explaining it. the white house seems to look for opportunity in the weeks and months ahead to show how the bill is having an impact to make people's lives better and they can wait until february. they made small businesses and big companies and start to

create more jobs in america and give their employees better benefits and needs to be in a place where he demonstrates that by going in being seen is being seen at the company buying new equipment or the employees the new benefit and investing more in research and development as a result of this and he needs to do this persistently between now and the middle of next year so people say wait a minute there is growth. the economy is stronger. the president is said to be true. >> i'd be curious your thoughts to put money to work to put it back into the stock, which are free to do. that is their choice. do you think in your heart of hearts. the company is and that's what they do. or even worse then produced job

losses before we get presumably a job. >> invest in plants and equipment, but they they bring it back in the you know what, we don't have plans that may not and has a special dividend or stock buybacks. that still means money gets pumped into the american economy. roughly $20 trillion. what happens if $2 trillion gets you check it into our economy. that is money put to work. neil: i'm telling you is not doing it. in fact, the first of all i thought they're talking about milk of amnesia and advice.us.because one named reagan did this, just explain in terms of average folks. everyone could understand i trust you with your money more than the government with your

money. >> acclimate the show is having an impact. the president has a gigantic magnet. look, we are going to have companies. we are not going to use this in expanding their businesses. this is overdoing that the money i'm getting back. for investing in things that will make my life in the life of my community better. they will plow into america and facilities or acquisition and herald their activity, but to the persistently and you've got to explain it in terms that allowed them to say this makes a difference. neil: what made you so good at this as you will always be on

offense. i heard one republican congressman the other day saying we had a democratic guest on saying this is going to be pulled through what you see them immediately came on to say or mean a lot, 40, 60, $80 i'd rather you have it been me have it. i thought it was such a picky but clear and direct response. >> yeah, i love these people who are so arrogant that they save 50 bucks in your paycheck. there's a lot of americans who are living paycheck to paycheck and for home 50 bucks more will be a big change in their life and allow them to put aside a little bit of money for the reserve. respondent these charges and get caught in the wee talking about pastors.

>> trust you with your money better than the government. neil: you might have a feature of this. keep at it. you're showing great progress. if i don't see you, have a merry christmas. karl rove. find political mind. people on the left and right agree with that. in the meantime, tax reform now passed the rally picking up steam. a lot of selling on the facts right now for attacks. after this. to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.

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>> welcome back to cavuto coast to coast theater nicole petallides five on the theater nicole petallides fiber in the flirt in the stock exchange but arafat over 90 points, but still obviously some relief on wall street after the tax bill goes through. also see members on wall street such as fedex which hit a new high this morning after a quarterly report saying that global demand is on the rise and they expect to see their best

record year for shipping during this holiday season. soccer three by 5% with the dow jones transportation index to a new high. you can see right there for the year the stock is up 35%. the best performance on wall street for the year 2017 as the dow approaches 25,000 by the end of the year. take a look at blowing up 91% this year. a stellar performance 64%. visa and wal-mart among the other gainers across the board today. caterpillar, home depot and boeing hitting all-time highs and also the 10 year bond yield jumping as well to the highest level since september. >> the president touting. >> in many years that came out they've had been they started

doing it many years ago. business has the highest level of confidence. neil: in fact, the latest statistic with home sales have been a better than decade high. jason meister, market watcher. i'll begin with you. you still see that continuing, the real estate stuff? >> i'm not so sure about real estate. we talk so much in the last few weeks about the tax field. we can look forward to that talk about the buybacks. i think that's the next catalyst. neil: you think that's what will happen. we will see a lot of buybacks here. >> that is the prescription. companies will put that to work to help shareholders and that is the next catalyst for the market. pfizer already announced $10 million buyback and it's just beginning. what is interesting with the tax

relief coming down right now the effective tax most s&p surcharged about 24% said that will increase earnings and bring you back down to 21%. what that will do is lower the p.e. ratio and make stocks that much cheaper because earnings. neil: i understand that they say it's already reflected you don't think it is? >> i don't think so. let's remember five years we've seen the market move up 90% from 1400 to 2700. i stood at the will only give it a little more at home. neil: let's talk a little bit more about real estate is further seen a good deal of activity with limits on how much more interest you can ride off to say nothing of state and local taxes can be very bifurcated. the high tax, high property tax

state and local sales tax states. they are going to be heard. for real estate not great. >> real estate is local as you know, that the economy is firing on all cylinders who have a consumer confidence is 17 year high. unemployment at 11 year low. i want to get back to something you just said. we have to look at local real estate markets. i think those states are going to suffer from this. high earners in the state they don't need to be in the states live and work in the states are going to migrate to state that don't have a late tax and spend less money. which they're not. this is a political movement is a good move.

>> i'm in new jersey. the only way keeping me there, and my kids go to school there. they seem to like their school. they like their friends. whatever. but if i had it based on math i would say no. i'm wondering the kids older, whatever, not in that situation, i can imagine the math work in their favor to just stick around. >> i think there's going to be a migration, potentially a mass migration. beneficiaries are housing market in florida and states that are less taxes. i understand as well whatever the illustrate -- improving economy and market, you can iron all of this out. is that your sense that these individual issues

notwithstanding, not seeing real estate is an individual, all good for the economy, all good for the general market. >> this was an historic monument to move. it's great for america. i think it's going to bring jobs back to the country and make us more competitive. while there are some who serves as far as the glucose states in the housing market, and that is very positive thing for this country. neil: you with long ahead on this positive trend. i'm talking thousands. but you are young, naïve. i'm kidding, but do you get a sense now that this continues for more money floods into this market, more deals are made. i'm particularly curious what happens at the money that repatriates back home. this is their chance to bring home trillions. what are they going to do with it? >> they will buyback stocks.

if you're a stock investor, and the trend continues it overall economy and how much of an impact it had been a that's the million dollars question. when we look at price will continue to perform. the s&p numbers having a great year 2017 at 20% is fantastic. we have much better years back in 2013, and it looks even further back between 1995 and 1999. the five years outperformed this year featured every year. this can be sustained if this can continue. doesn't mean we can't go higher. corporations going very well. are you going to put your money in the safety of treasuries or look at the stock market yield a not even a question, not even close until it has to be a decision. neil: we haven't had that even 5% what correction by whatever

you want to call 18 months. >> there's money on the sidelines as they continue to flow in. just a natural part of people's life. they take x amount of money, added to the market with 401(k) whatever the programs are. money has to flow somewhere right now in the stock market. neil: this is a simple, simplistic question on my part, if you had a choice between getting counts on a lot of stocks or to buy a house, what would you do? >> i actually buy a lot of stocks. the economy is growing. the stock market is going to benefit from not significantly. as your other guests are saying there's runway in that market. neil: you are real estate guide you wouldn't buy real estate. >> i would buy both, but the stock market is the place i would love to invest my money.

>> i'm a buyer. >> i'm looking at house. interest rate >> michigan. a nice they caused. very inexpensive and you talk about the mass migration. moving to the southern dates for a temperature as the population gets older and a lot of people moving to arizona and chicago and so forth. i don't think it's an economic decision for a few percentage points difference. people complain about it, but whether they pick up and pack their things and take take everything in take everything and move as a whole another question i don't think will happen many times. neil: you do realize michigan is pretty cold in the winter. you do realize that? the to get 300 inches of snow a year. chicago is only in. this is beautiful weather here. neil: thank you i is very, very much. i guess it's always your perspective. the back-and-forth of senators.

what a senator republican dead who would have been aghast we are told, that susan collins is getting a lot of grief. now she is hitting back. after this.

neil: remember what susan collins voted against the health care reworked ritchie argued at the time was unfair to average americans whose premiums would shoot up to the idea in the latest go around where she approved the tax package can even know what would have been individual mandate provision where that would be thrown out, there would be an understanding or at least the belief and understanding that her vote had been assured because they reduce something in the legislation they just had that would protect

the tax legislation. i believe that the coverage has an unbelievably sexist and i cannot believe the price was 70 years of experience to millennial blogger ali spanky. i have great respect for the senator, but here is where i'm not a loss. how is it sexist to say that looks like she could have been duped. >> it always hears to -- he's been here fellow woman cry sexism in the mid-legitimate criticism. she is getting flak from the left and the right, but that is the price you pay for being a moderate. the left is not voting for bills voting for a bill to repeal as the ovonic your mandate. the right is not for general perceived lack of conservatism and offset repealing the ovonic your mandate.

both sides have bees was senator confident nothing to do with the fact that she's a woman. if you look at the press coverage of other congressmen over the past few months, there has been significant criticism toward mccabe, rubio, corbyn, flay, bipartisan criticism. accusations really don't hold out. neil: i understand the frustration because you can make the argument may be a deal was made and turned it around and say i made this a stand-alone issue and believed down the road we will address some of these problems, inequities, health care, whatever. i don't think that's true in by the senator voting for or against. >> absolutely not i don't think it has to do with gender. just a significant impact on the bill. she tried to pass the assets she promised her the house but ended up mailing. she's done a lot of hard work and i commend her for what she's

had throughout the car that's not going to win her any points on the right or the left. tranter and suppression in harkin from a low tax state fought very hard for the state and local taxing when she could've just said it doesn't matter to me. i may state that isn't directly affected by that. but she didn't. >> exactly. you're absolutely right and she used that as a defense. however, reverting back to the gender portion of this, it doesn't do her any good. she had a lot of impacts on this bill. if you want to defend yourself, maybe you're being treated unfairly for that. neil: i like what you. neil: i like what you said when the moderator comes with the territory. the tick off people who john mccain was vilified when he ran against barack obama, salad and all this and then we

realized as we showed to appreciate not only service to his country and what he's been through, but all he has done since then he is a hero. you have to remember that comes with the territory and by the way being a politician. >> absolutely. flake has experienced that. these are congressmen, by the way, going back and forth. i don't necessarily agree with, and they see exactly why they are getting criticized by the left when they do something more conservative and by the right when they do something more liberal. any sort of identity politics language and had done some conversation. we are no longer able to have an intellectual debate, which senator collins is usually very good about doing, but unfortunately she has stooped to a new level of low. neil: you just said that to me because i'm a male anchor.

>> back there. neil: thank you very much. in the meantime, an interesting development with the dow up 14 points. i do want to get too wound up, but interest rates are climbing a little bit here and a lot of that on the expert patient that tax cut, despite what a lot of people are saying that much do about something, you must mean something because the bond market seems to be anticipating that we look a little pickup in economic activity with inflationary spiral, but enough to push interest rates through. why is that?

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neil: we are getting to more updates on the washington state train derailment that killed three people. investigators looking to the amtrak engineer might have been hit by a second person that he might've been training at the time. speeds of 50 miles north of what they should have been. we will keep you posted on that. still trying to figure out how it was the train was going in excess of 80 miles an hour on a 30-mile an hour curve stretch. meanwhile, back and forth on what happens with the tax code.

one will add 1.52 trillion are dead in the next 10 years. a lot of traditional spending will add 10 trillion more pier 1.5 trillion cubic tax cut. democratic congressman john garamendi. congressman, good to have you. i understand that concern, but do you have any concerns for the traditional debt that grows on its own accord, nine or $10 trillion more, leaving aside the tax cut dead? >> absolutely. the underlying for next year is $600 billion then you add on top of that the new debt acquired as a result of this new legislation, tax reform or scandal or whatever you want to call it. the other part of this interesting moment ago talking about increased interest rates. the fed raised the interest rate

to slow down the economy and we are going to add another $500 billion federal demand for debt this year. 600 billion next year, plus what comes from the tax cut will probably be 100, $150 billion of additional federal demand for money this year and 2019, well over $200 billion of additional demand. neil: were you concerned? what was happening under barack obama were tied at $10 trillion? let's take a look at what happened. neil: i am just saying -- >> but with the money used for? that's the basic money about the tax bill. they tax the money was used for a massive tax cut for corporations. actually $1.3 trillion of lower taxes for corporations. will they spend the money on

jobs? the answer is increasingly clear. no they won't. neil: how do you know? >> from their words. the ceo of wells fargo that clearly even on 18% on an after-tax profit, he was then not on stock buyback and dividends. neil: those involved intentions or california pension fund company will benefit as a result of that. when you be happy about that? >> i would be much more happy if they had a job. neil: a four-point 1% unemployment rate. before this even kicks in. >> we also know many people unemployed that are not qualified for today's jobs that we should be spending that money preparing people for today's employment. job preparation, job retraining, all the rest that we have to look at the infrastructure. the president talked about a trillion dollars infrastructure program. where's the money? show me the money.

if he spent over the course of the next five, six years, $100 billion a year on infrastructure company would employ to .1 million people. neil: the infrastructure plans he and others are cooking up for next year? nonexistent. he severed a given up. neil: technically we could say that about everything. we can't do squat. >> you dig deeper. is that the idea? no, i don't think so. neil: we did just that in the prior administration before that. that's our history. >> yes, it is a history. we had an opportunity, choices he will double fully use the money to buy back stock, pump up the stock rice and dividends in ceo pay in probably off shore. they are $2.5 trillion in cash. neil: one worker with a bill for

investing in our stock in the market will benefit one american. >> well, that is one option. maybe they will, maybe they won't put the personal income tax cut, the super wealthy a million dollars a year. what are they going to do? hire somebody to? their yacht? neil: are you then saying -- he would say no to an infrastructure that you would've said yes even though we didn't have the money for that? >> what i say is there is an opportunity option before the congress. tax cuts for corporations that are clearly going to use that money to increase their stock price by buying back or the super wealthy, what are they going to do? trained to do that and no one infrastructure? >> even a stronger infrastructure. we had an option. we could've spent not on

infrastructure, building the foundation for economic growth unemployed almost 4 million americans. that was a choice. we -- the republicans made the choice. 83% of that wound up right there. neil: we shall see. good to see you again, congressman. >> thank you, neil. neil: the dallas 15 points. stay with us. -- the dow was up 15 points. stay with us.

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neil: we are focused on the dow as we should be. backup in interest rates heralding a sign the markets see a pickup in economic activity. a lot of congressman hopping into a bus. they make their way to the white house. ashley webster will monitor what they say when they do. ashley? ashley: party bus, neil. breaking now. president trump will speak in about an hour from now, securing his first legislative win, tax reform. finally republican lawmakers passing the most reform in 30 years in a generation. i'm ashley webster in for trish regan. welcome to "the intelligence report."