>> okay, everybody, in a marriage, a nagger-- >> i did not marry a nagger and say happy birthday to the one i love, happy birthday, see everybody tomorrow. >> brenda: the tax attack is back. president obama hitting the campaign trail calling for tax cuts ott millionaires and taking aim at mitt romney, paying 15% capital gains rate and s dnc deputy finance director, david mercer, welcome to everybody. >> okay. john, a 15% flat tax for everyone, is that how to get everyone working again? >> i mean, i think that there's some sense in that. i think that americans should stand up and cheer for the presidential candidate who says i'm going to give you a big, fat flat tax. and give you the same tax rate basically, that mitt romney has. and people are villainizing mitt romney for paying 15% on the investment that he made in

the past, but i think that americans should be looking for that and presidents from kennedy to reagan, to bill clinton, to george bush cut taxes and stimulation to employment and lowering of unemployment and one of these candidates should take hold of that. >> brenda: david, you say it doesn't necessarily bring jobs? >> well, it's a conceptual frame work and would be phil graham who ran for president or steve forbes and we know where they went and to refer to romney, which i'm glad was, he in fact, has said, should bring him on the show, said that the flat tax would be a tax on the middle class, so i'm florida that romney was raised so he could put that point there. >> toby, let's talk about the flat tax itselfment does it it bring jobs? what does it mean for jobs? >> it has, in every country used.

it's worked for two reasons, number one, because it simplifies things. if you look at the money that we spend in the united states, they make 90 billion dollars a year to comply with this. so, it unleashes that and creates capital. when you create more capital, you create investment and unlike the democratic party, more capital equals more jobs, and actually one-to-one correlated and this is exactly the type of outcome you get when you go to a flat tax. the only people that are out of jobs, tax attorneys and not good for taxes. >> brenda: jonas, where do you stand on this? >> conceptually, yes, if it's right to the point where america went bankrupt and don't get enough 50% tax rate across the board. >> how about everybody paying it. >> not enough of a level. we're going to go to a system like that and it has to be at least 20%, including cap gains and mitt romney and buffet tax rates and that's how we spend money in this country and let the major across the board cuts far more than anybody is

talking about, it's just not-- and people now, the benefits of it as far as jobs, once you have a situation where you have different tax rates, you have game playing going on and this income, this rate, this, that company change the way they do the balance sheets and we're going to pay dividends, not going to do this or this or this and all of this behavior goes away, once you have the income. and there are benefits to t and it's a fantasy land to sauk talk about everybody paying of the tax rate. it's impossible. >> i don't think it's i am pock, 50% of measured america pays no taxes and like 15% out of them and that will stimulate revenue, as a small business owner it's clear if i knew my tax rate was 15%, i would build my business and hiring people and growing it and i think that's what will stimulate the economy. >> and gary b. you've done research on companies that adopted the

flat tax. >> exactly, since 1994, 24 countries adopted a flat tax, it's interesting, no one has adopted our complicated tax system and that should tell you something. too, what happens, if there are countries like russia, for example, and tax revenues increased 25% the first two years, so, right there, you know, granted, that's partly a compliance issue and exactly what we want. and three, we won, as john points out. everyone parng, yes, you can carve out exemptions for people below or at the poverty level. i understand that, but 15% across the board, just smacks of fairness and what happens, brenda, you talk about grosse pointe woods in the last reporting to international monetary fund and the 13 countries that are reported amongst those 24 showed grosse pointe woods growth of 10%. what was your grosse pointe woods growth last year? flat or, you know, up maybe 1 or 2%, so, clearly, when you

have a flat tax, you have grosse pointe woods growth, what are you going to get every time we've seen big grosse pointe woods growth like that. it it leads to increased jobs. i can't see a reason not to do it. >> well, david, tell me, how does a tax hike lead to more employment? >> well, where-- well, if i might say, it's a realignment and you have the tax cuts that we're spent to the millionaires and billionaires, for ten years, into the bush years and into the too in obama and has not generated the jobs and in fact has led to 2 trillion dollars being on the side lines. where the jobs are coming and what we should be be doing is stimulating the middle class not imposing a tax on them. that's why the president is mil job, to more jobs for americans? >> well, it's not-- well, from a historical perspective, it's really, an expiration of the bush tax

cuts to the clinton levels and we know, to the clinton levels, back in the '90's, we have 22 million jobs at the level of tax that was, that was there before bush got into office. >> right. >> and-- and the capital gains tax was cut. >> yeah. >> it wasn't due to the income tax, it was a capital gains cut that caused increase both in employment and grosse pointe woods. >> this would be during the bush cries tis. >> this isn't going from 39 and 46, and a flat tax, which would unleashes a torrent of activity that heaven for bid we would actually unleash. >> we could only wish for the clinton economy during the the internet bubble and this economy. >> that never happened, brenda. >> and we inherited from george bush. >> i'm just saying they are two different economies at very difficult to compare. >> and absolutely, why we should talk about the historical nature of it. >> i agree. >> historicalically it was the great tax cut of bill clinton

who took the capital gains tax from 35 to 20, and democrats continuously laud his performance from an economic standpoint. so, even he demonstrates tax cuts help employment. but with any tax cut, there's he a tax raise. >> a tax raids that let to his bringing down the unemployment rate and realigning it to stimulate the economy, and is when he ran for reelection, and so, you again, not only cut taxes, but raised it with circumstances dictated. >> jonas? >> there's diminishing returns for any, and when you start to cut. otherwise we should go to 0% tax and without creating more jobs, probably not as many as the initial cuts. >> and the point, you need a third level of taxation and support the government not go bankrupt and it shouldn't be 15% across the board or we'll go broke. >> last word, toby?

>> we should let the chips fall where they may and we know 50% capital gain and the explosion in our economy, we wouldn't know what to do with the growth. >> thanks so much. >> well, his company just created 14,000 new jobs last year and now one of the america's foremost ceo is telling neil cavuto, the president's job plans is not the way to go. and first, did you hear about this? and gas prices spike in the u.s., a china off shore rig is getting ready to pump out oil off the coast of florida and it's not for us.

. >> clayton:. good morning, everyone, live from america's news headquarters, i'm jamie colby, just three days before the florida primary and the g.o.p. candidates are hitting the campaign trail hard, but not all in florida. mitt romney and newt gingrich are pulling out the stops in the sunshine state. but ron paul's moved on to maine and rick santorum is in

northern virginia today. according to real clear politics average, mitt romney is holding a lead in florida with 38.7%, newt gingrich with 31.5. rick santorum and ron paul are right behind. we're also learning this morning that the u.s. military is set to launch a floating naval base in the middle east. the u.s.s. poncy will be used as for high speed boats and helicopters used by special forces and the military saying that it's especially necessary considering the rising tensions in the region. i'm jamie colby, more headlines 30 minutes away, keep it right here on fox news channel. ♪ . >> brenda: gas prices spiking more than 80% and president obama's watch and calling for more drilling in the future. guess who is already drilling 60 miles off the florida coast? china. a chinese built oil rig is set to pump out oil near cuba as early as this weekend. gary b.

if there were more u.s. rigs doing what china is doing, would our gas prices be lower right now? >> absolutely, brenda. you'd have clearly, this is economics 101, supply and demand. you'd have more supply. you know, sometimes the energy policy, and not even sometimes, always, the energy policy this administration's baffling. the president said they want, he wants energy independence. and he obviously wants higher employment, we obviously have the resources off shore. why, you know, china is coming in there and drilling, when resources we could be taking advantage of, where we increase employment. we've lowered energy prices and we assure in the future, at least a step toward energy independence, again, it's baffling. >> david? >> well, i'll just say, going to gary's point. that anybody, whoever it is, that brings more oil and resources online, increases the supply and by virtue of that, helping to lower the

prices. >> yes. >> secondly, if i might continue. >> go ahead. >> the president is looking for a diverse energy policy not the just reliant on fossil fuels, but clean energy so in the future we're not in the position not only for a clean environment, but reduced pricing and diversified energy source giving us independence from the likes of the middle east. >> brenda: okay, jonas, clearly, oil is a worldwide commodity and the more supply there is, you know, the lower the prices go. but the whole idea is this energy independence here, isn't it? >> well, yes, what we've done. and whoever thinks america doesn't go after the energy resources forget that he we basically went through all of our energy resources in the oil, and a long time ago. >> oh, and in fact, right now, we're currently no one is stopping it, massive natural gas, lower than the price of ten year lows and no one stopped that, in fact, the

president spoke more for off shore before the petroleum leak and changed the attitude about it, but no one in the country stops you from going after energy in land. now, as far as riskier off shore stuff, this is florida as much as the federal government doesn't want, right fly so the chinese leaking all over the 80 billion dollars tourism industry. >> brenda: toby. >> let's be real here. if off shore drilling started tomorrow every place we had to drill. eight to ten years. but somehow, cuba figured out that they're sitting in a fabulous oil zone and the united states is right, right up and somehow we've decided and florida, heard this that the assets are not valued. if we were serious about job creation we'd be pushing this and working in alaska and of course, a pipeline and two to 300,000 more jobs and we would have much higher royalties

coming off to pay off our debt. and we've got a pipeline. >> no, i'm saying that. >> and going after oil. we need ten more oil pipelines if we have the activity necessary to drilling. >> john? >> and well, where they're coming from, that any supply helps the global macro. when we have the oil within our reach and the technology to get it and we let cuba claim it and arch enemies to pump it out to them and the supply going into the global supply has tags on it from both china and cuba, so, it comes back to us at a higher price. why would we allow china, our greatest debtor to set up an off shore post, 100 miles off our shore and pump oil to another one of our enemies and we pay royalties and taxes on it when we should be capturing that and less dependence on the middle east, chinese and venezuela, china is not an

enemy yet. >> i say i doubt that exxon's concerned about that, experiencing all time profits and with regard to the comment of saving money on our deficit. i think they're now in a great position, for us know the to, through expenditures, ie, subsidies, dealing with, giving that to exxon, when we can reol kate those resources elsewhere, to our debt and reducing it. >> brenda: that's got to be the last word. thanks, guy. shamu isn't the only one making a splash in the sunshine state. neil cavuto's coverage of florida's primary is also making a big splash. he kicks it off tuesday at 4 p.m. eastern. and donald trump and many more, then at 7:55 p.m. on fox business he'll cover it like nobody else. tracking the ballots and the world market reaction. don't miss it. coming up here first. another tax funded green company goes bust.

is it time to stop spending money on this agenda? . does any mother evefeel like their kids are adults? i have twins, 21 years old. each kid has their own path. they grow up, d they're out havingheir life. i really started to talk to them about e things that are important that they have to take nership over. my name's colleen stiles, and my kids and i did our wills on legalzoom. [ shapiro ] we created legalzoom to help you take care of the ones you love. go to legalzoom.com today and complete your wil in minutes. at legalzoom.com, we put the law on your side.

this is mary. who has a million things to pick up each month on top of her prescriptions. thankfully, her walgreens pharmacist recommended a 3-month supply. now, mary gets 3 refills in one and for 3 months she's done. ask your pharmacist about a 90 day supply and how to save with the prescription savings club. individual memberships are just 5 dollars. enroll today. walgreens. there's a way to stay well.

>> another one bites the dust. this time, it's electric car battery maker, ener 1 is filing for chapter 11 after the administration handed it a 118 million dollar grant. and still, the president keeps pushing the green. >> i will not walk away from the promise of clean energy, we've got to think about the future and not backwards from the past. invest in solar, wind and fuel. >> and the government support

is critical in helping new energy ideas off the ground. >> leading on this issue is the right thing to do. >> toby, you say how many more losers does the government have to pick before they get out of private-- >> of course, it's not ener 1, we're at number three here, a long list of trying to pick winners and losers and the government couldn't do that well because frankly, nobody has been in the the businesses. what they're good at doing, how about military r and d. and businesses supporting the infrastructure. they've proven they can't do it and six more to blow up in the next year. >> david, outside of that. outside of like nasa and defense, where does the government belong? >> well, that, that's the point, i'm glad gary made it. you know, government, we've got to debunk the myth. the government has been a partner in advancing american interest and did it on the tax dollars after world war ii. >> why? >> they weren't picking winners. >> we're talking about private

business. >> if i might fainish, that was to create the market for the automobile industry and we started more clear energy, which led to jobs and we've always vested. the government always tried to support in corporate and commercial interests and doing so he with a figures forward on clean energy. and as in private business, there are winners and losers and we do that in collaboration with the private sector, not in isolation. >> okay, john? >> and the government at this point is starting to act like a taxpayer-backed investment fund where they can go out there and use taxpayer dollars and invest in companies that suit their political needs and finding out time and time again that the investments that they're making are going bust, and my example is the chevy volt where you add up the subsidies, put out about 3 billion dollars in subsidies and sold 6,000 cars and that's

another example where the government is taying, basically, $500,000 a car. >> and the winner waspublicans. >> and many compary,on't make ipods here, i'm sorry, i've got to get to gary b. last word? >> 60 years of investing in the energy sector, we have zero results to show from it. so, it's clear that, obama administration is no bain capital when he it comes to venture capital. >> brenda: thanks for joining us. one sector of the u.s. economy on its way to the biggest boom since the great depression, now, that is a prediction. across the golden state, where everyone has been unbelievably nice. mornin'. i guess i'm helping them save hundreds on car insurance. it probably also doesn't hurt that i'm a world-famous advertising icon.

cheers! i mean, who wouldn't want a piece of that? geico. ah... fifteen minutes could save you fifteen percent oh dear... or more on car insurance.

bull or bears? >> that's then and this is out the door. >> your prediction.