is embroiled in a scandal. >> all right. that is it for "forbes on fox." thank you for watching. keep it here, number one business block continues with eric bolling and "cashin' in." ♪ >> they finally got it. i'm so proud. they are ready for anaheim. [ applause ] >> yep, living it up amid the crackdown. i.r.s. employeeses dancing the night away. and showing silly star trek videos at a la victim junct, all the while tax officials target conservative group. we know how much it cost all taxpayers. you won't be dancing with joy. the government is dialing up more controversy. this time unclal sam getting info from major internet companies. microsoft, yahoo, goggle, facebook. apple. oh, and they are seizing your phone records, too. is your personal information at risk? "cashin' in" demanding answers

right now. ♪ >> eric: welcome, everybody. the i.r.s. hits keep coming. now we find out that the agency is dropping $4 million of your tax dollars on the conference at a swanky hotel in 2010. junket with the "star trek" skit and infa mouse line dancing. it all went down the same time that i.r.s. began targeting conservative groups. get this. they were learning how to be open and transparent with taxpayers. >> eric, i mean they are going after the tea party groups that want to cut down on government spending. the same time they are spending $4 million on a conferencconference? $3,000 for presidential suite. i'm a successful guy and i

never spent $3,000 on hotel room. it's part of a trend. the g.s.a. with their lavish spending the clown and mind reader a couple year ago or the v.a. they treat the money like it's not theirs because it's not. it's not just inexplainable, it's inexcusable. >> eric: yes. it's inexcusable. to spend taxpayer money privously, arrogantly like that. but at the same time they were targeting cop servetive groups. what does that tell you? >> well, it tells me a lot of things. first, it tells you that the more fundamental problem the government is out of control. e's gotp so big that nobody knows what is going on. i'm not sure they knew themselves. the increased gran diazment of power is in the bureaucracy, one element of the government has no idea of what other element of the government is doing. agencies are out of control. they feel entitled. they think that they are the people working for them. as opposed to them working for

us. that is the problem. >> right. austin, where are the checks and balances on stuff like this? the conferences? $50 million between 2010 and 2012. there must be some oversight. >> you know, i think there is. but i thought that, i thought wayne's point is right. you got to have some oversight dispalestinian odiscipline or tl happen. this is similar in a big company, of people who start abusing expense reports or that kind of thing. the budget of the 50 or the $40 million was for 220 different conferences. i thought to the extent the i.r.s. has conferences where the people are coming in and actually helping them do job in a less burdensome way. >> eric: i hate to cut you off. it was $50 million. 220 conferences. they are line dancing and doing stupid star trek videos. this is one agency, one group that can bring every american

to the knees when you get a phone call from these people. i think they have more responsibility to the taxpayer. >> look, i 100% agree with that. what i am saying is this conference in anaheim with the $3,000 presidential suite, to me that is the more egreous example than the fact they ran 220 different conferences. >> right. to add to your point, the more egregious point is the money was set aside to hire more enforcement officials. to hire more people. and instead they kind of made a little entry, accounting entry and moved the money over to their party budget. and had a big old conference instead. it hurts us double as taxpayers. one they shouldn't be wasting our money. two, money that was supposed to be set aside for something to help us. we lose completely. >> it doesn't have to be this way, eric. it doesn't have to be this way. i.r.s. has $12 billion budget. that is $42 for every man, woman and child in america.

it's six months of netflix you pay for every year for the budget of the i.r.s. there are studies that show a flat tax could reduce the expense by 95%. but, of course, the government would never go for it. because it doesn't punish the rich to help the poor. that is something worth exploring rather than more oversight of the government spending that is out of control. >> eric: all right. i will ask wayne this. i want austan to weigh in also. the i.r.s. came to congress, raised the right hand and swore under oath they were asked what they were doing. doug shulman who had been to the white house or cleared by the white house 157 times over the last couple of years. when asked what he was doing there, he said something to the effect of, you know, i went to the easter egg roll. that is just contemptuous to the american people; is it not? >> it's arrogance beyond it. that is what i said before. these things are out of control in the sense they are self-imbued with a power. and nobody is watching the store. they think that they are

independent. it's the fact that they -- this exists throughout the government. each one of thesing as has found themselves -- each one of these agencies found themselves, so to speak, powerful within itself. nobody is controlling them. it's getting worse and worse. so big government is a theory that is pervasive throughout what we are doing and it has to stop. >> wait. quick. eric, you talk to any event planner out there. they do have big lavish conferences like this. but for companies that have the money to spend, all the power to them. the i.r.s. doesn't have this kind of budget. to au stan's earlier point, look, they need the conferences. they got to learn what is going on. but don't waste our money. >> eric: private and taxpayers money are differences. before we move on in the show, tell me. who decided to target conservative groups? we have known that it came from since gnatty. but since gnatty is pointing their finger at d.c. some lawyer in d.c. didn't come up with this on his own.

you were in the white house and administration. who to you think did it? >> this is -- what i think happened is we the congress set up a weird situation in which we allow political groups to spend on elections with secret donor lists, et cetera. we tell the i.r.s. you make sure they are not partisan organizations. so, i think what it seems like so far to me is that somebody whether in washington or cincinnati or wherever in the i.r.s. got in their head. okay, well, here is how we'll figure out who is partisan. does it say "tea party "give them an extra check. >> eric: who? we agree on that. we agree on the details. who? who came up with the idea? it has to generate from somewhere. we need to know who that is. >> that is what they should figure out. let me say one thing, which is, if wh we find out in the end is that they applied the scrutiny to the tea party, and to a whole bunch of other groups, then i think that situation is very different

than if the i.r.s. itself is being partisan. if the i.r.s. turns out to be partisan, i think that is a huge problem. they should be trying to figure that out. >> the president version of accountability. we'll figure it out. get back to you. >> eric: there are no liberal groups targeted. if you know of one liberal group targeted go ahead. go to my twitter account. let me know. i will bring it. i heard zero liberal groups. >> the only groups, the only groups that lost their tax exempt status actually were liberal groups. the progress whatever groups. those are the only ones that had it taken away. >> eric: no, no, no. but you conflating two different issues. they were targeting the conservative groups to allow them to get the tax exemption status, they weren't doing it on the liberal groups. last thought, jonathan, quickly, please. >> i think to some extent austan is right we have given the government power but instead of emboldening the power and enlarging the power to make the i.r.s. bigger a

more powerful, time to cut it. flat tax is not explored in congress these days to your point about the problem is the congress. that would be an initial moral step toward tax system to work not just for those in the i.r.s., but for all americans. >> eric: all right. we have to leave it there. power corrupts, absolute power corrupts absolutely. from government spending spree to snooping spree. if you use the internet or talk on the phone, listen up. uncle sam is tapping major internet and cell phone companies. is anyone's privacy safe? >> it seems like an invasion of privacy. >> there is no reason for them to know who i'm talking with. >> it doesn't make you feel comfortable. big government is not a good thing. a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age.

♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

i'm uma pemmaraju in washington. with breaking news. new york new jersey mayor corey booker declared his

capped dassy. he plans to run in the special election to fill the seat of the late senator lautenberg. chris christie announcing primaries will be held in august and general election set for october. this is out of afghanistan this afternoon. two u.s. seasonals and a u.s. citizen dead after an aabout in that country. a map in an afghan army uniform shot the international troop dead. well, the chorus is growing louder to call for eric holder the be firedded. now democratic senator joe manchin is suggesting holder should step down. just ahead, former attorney general in the bush administration, alberto gonzalez will join us live. we will talk more about the growing controversy surrounding eric holder and his ability to lead the justice department. all that coming up at the top of hour on america's news headquarters. hope you will join us. ♪ ♪ >> eric: privacy becoming harder and harder to find. outrage growing. over a new report in washington has been mining data from all the top internet

companies for years. and same with your phone calls. the government demanding and getting its hands on phone records. the white house calling it a critical tool. you ain't buying it? >> they are fighting terror monitoring and surveying miles per hour citizens, eric -- american citizens, eric? spying on reporters or people making phone call or searching the internet? it's dubious. same time you spy on the miles per hour people you have a president sending hundreds of millions of dollars to muslim brotherhood, doing nothing on bengals. basically apologizing for islamic jihadism. why is it that we are targeting american citizens? not actually terrorist that the president professes to want to stop? >> eric: tracy, are you con ised that every time you google something big brother is taking look at or could have a look at what you are up to? >> i hope big brothers like the heels i ordered the other day then. i am very concerned. very concerned. it's not that you know this is not going to stop. this started with your soda. now they arem coal down on

everything. look, i get the notion they want to keep us safe. but there has to be a way to do this and be transparent at the same time. otherwise, i'm loving the black heels. i hope you are too. >> eric: austan, where do you fall on this one? it doesn't seem to be partisan line. some are okay and say keep me safe. others say too much government overreach. >> you know, i think a couple of things. this does creep me out. i thought there would be a mash shift of people getting rid of verizon and go to at&t. but we found out it's with all the carriers. the national security part of this, it's somewhat notable on a bipartisan basis, all the senators from the senate intelligence committee who know what is going on, which we do not. they have come out in a bipartisan basis and say they support it and think it's important for the country to have this ability. the issue on the internet, they are focusing on people calling overseas.

so if you find that five different suspects and people you are looking at in the u.s. are all calling some house complex in pakistan, this is probably could be important to keep that number. the other thing when you click on the user agreement, i agree for the online companies. you haven't read it. do you know what it is? >> no. you hit on something. >> i don't like anybody spying. >> they collect it and sell it to people for money. >> wayne, the overreach. fourth amendment of the constitution says be careful for unlawful search and says sure. is this unlawful search and seizure? >> it is. the patriot act is specific. it talk about how you gather the information and this is done indiscriminately and in

bulk. under the patriarch at there has to be a suspicion of wrongdoing. the judge who signed this order to allow them to get this information i don't know what he saw, we don't noah he saw yet. that may be important. in the meantime, the possibility of abuse. imagine giving eric holder this information. you know what he is going to do with it. he would violate your constitutional guarantee in a second. >> eric: we have to go. i don't have time. everybody pointed finger about george bush about the patriot act. this is patriarch act on steroids -- patriot act on steroids. comment? >> this is almost exactly what george bush did. on the up side and down side. i find it odd to see people saying it's great when bush did condemn the president. >> eric: or conversely the people who had a problem with it when bush did it now say it's ki. we have to leigh i leave it the.

coming up, the happiest place on earth becoming the most expensive place on earth. disney with a big price increase. why you might want to give mickey an earful. someone here says it's a good thing. clients are always learning more to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies."

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well, forget friday's jobs report. mickey mouse may be telling us what is up with the economy. disneyland and disney world are raising prices. while parents may be cringing, but there could be a silver lining. >> the parents will keep paying it. your little one wants to see cinder you will scrape the pennies --

>> well, he is a boy. >> well he wants to say tarzan. >> or jack sparrow. >> you are still going. the upside it means people have extra money in their pockets or willing to charge it or do something. but they are still going to disney world. >> take a vic authorize -- victory lap. disney can afford to raise prices. >> the jobs report was respectable, but not great. let's not take a victory lap yet. i think that's right. i think her insight is that's probably a sign that tourism and economy is coming back. entertainment tourism is a big driver of the economy. let's just hope it is not only a sign that there are foreigners who have a lot of money who are coming and increasing the demand at disneyland. if it is just that, that won't bode well. >> disney raised the price 100% in the last 10 years. i'm sure americans incomes haven't gone up that same period of time.

>> eric, you make a good point. disney races its prices every year for the last 10 years. this is not new. this is not something that is saying that the economy is fine. this is costs going up. this is the threat of inflation. we have commodities that have gone up substantially, cotton, will you lumber. and you better look out for the federal reserve policy. they will take the wraps off and we will see inflation in a big way. >> wayne hit on something. a lot of the water rides at disney, water prices are sky rocketing and fuel prices going up too. >> it is not bottled water in those rides there. >> i know that. >> mr.ed to -- mr. tead can barely afford it. nobody is taking a victory lap for any job growth. wayne hit the nail on the head. often time rising prices can give the appearance of growth when in ago few wall tee it is the appearance of inflation.

there is no such thing as a free lunch. one thing is that we are starting to see the net affect of the intervention from the fed on down and it is higher prices across the board including at disneyland. >> i have to tell you i think you are all overthinking it. i think mickey mouse is sitting back in his chair saying they will keep coming regardless of what i charge. >> they less -- elasticity. >> just keep coming. >> core inflation is about 1%. it is below the target rate that the fed has been searching for. i think this argument that this is a sign of imminent hyper inflation is pretty ridiculous. >> we need to point this out. universal studios raised their prices. they are in florida. they are up to $92, $95. i guess we are pairing for it, right? >> we are going to pay to are

it. in all due respect, i don't know if you are watching what fed policy has done and jonathon is rightfully saying. you will see an increase in bond yields and you will see an increase in inflation. i will be happy to bet you on it if you want to put some real money, some personal money. we'll bet on it and i will say inflation will be much higher next year and i bet you -- >> you have a lot more money than i got. i need to be careful than that. >> i think i know more than you do about inflation. >> listen, maybe -- >> this is one of the historic lows. of course they will go up. >> austin, we invite you every month. maybe we will teak the temperature the next month and the month after that. we will say thank you to austin. a great sport for joining us. coming up, a teacher under fire for suggesting his female students forget the corner office and focus on being mothers. not sure what they think, but we will hear what tracy thinks

next.

it is time for what do i need to know for next week. tracy is first? >> commencement speech at high school and it says that girls should stay home and focus on family. i get. it being a mother is the greatest job on the planet, but go out there and get what you want! go out there. >> i said for the last six weeks i was suspicious of the run up in the market and the last 10 days have proven it true. look at something more solid, johnson and johnson. >> very interesting. a consumer staple. mr. hot hand, you are on it. >> emerging markets are ice cold and. gee yaw are fighting islamists is white hot. i own nge in my fund and i think it goes higher from here. >> you are on especially on the interest rates and i think you will be right and continue to be right on that one. we want to say thank you. thanks for joining us. you can weigh in on all of the

topics we discussed on twitter. have a great weekend and i will see you on "the five." two world leaders who don't trust each other now navigating through what president obama calls uncharted waters. president obama once again meeting with miss counterpart over cyber security. the timing is interesting. he says he is being forced to defend our government's secret spying on millions of americans. >> you can't have100 percent security and also then have 100 percent privacy and zero inconvenience. >> all this amid new developments this week in another white house scandal. the irs still under fire for targeting conservatives. now growing concern over news that higher ups