his salary is hundred thousand dollars a year. one of the biggest companies in the world. let's be his partner. >> neil: way to go, charles. >> finally got it. ready for anaheim! >> eric: irs employees dance is go the night away. all the while tax officials were targeting conservative groups. let's just say you will be dancing -- you won't be dancing with joy. and holder, the government is dialing up even more controversy this time uncle sam getting info from major companies, google, facebook and apple and seeds go your phone records too. is your personal information at risk?

"cashin' in" demanding answers. >> i'm eric boling. our crew this week, wayne rogers, jonathan hoenig and tracy burns and also joining us a professor of chicago school of business, austan goolsby. >> dropping more than $4 million of your tax dollars at a swank hotel. same junket with the star trek skit and infamous line dancing. it went down when the irs was targeting conservative groups. jonathan, they were learning how to be open and transparent with taxpayers. >> they are going after the tea party groups that want to cut down on government spending. they are spending $4 million on a conference which is really -- $3,000 for a presidential suite. i'm pretty successful guy.

i never spent $3,000 on a hotel room. it's part of a trend, with the gsa with their lavish spending couple years ago or the v.a. and they treat the money is not theirs because it's not. it's inexcusable. >> eric: it's inexcusable to spend taxpayer money arrogantly like that. at the compact same time they were targeting conservative groups, what does that tell i? >> it tells me, think more fundamental problem is that the government is totally out of control. it's gotten so big nobody knows what is going on. i'm not sure they knew themselves. the power within the bureaucracy, it's one element of the government has no idea what other element of the government is doing. these agencies are out of control. they feet entitled and the people are working for them

as opposed them for working for us. that is the problem. >> where is the checks and balances. $50 million between 2020 and 2012. there must be some oversight? >> you know i think there is. i thought wayne's pointed is right. you got to have some oversight and discipline on this or else this thing tends to happen. it's a similar in a big company of people start abusing their expense reports. the budget of the $50 million was for 220 different conferences. to the extent the irs does conferences where the people are coming in and actually helping them --. >> eric: let me stop you. it was $50 million. there were 220 conferences. what are they doing -- they are doing stupid videos. this is one group that can bring every american to their knees when you get a

phone call from these people. i think they have more responsibility to the taxpayer. >> look, hundred percent agree with that. this conference in anaheim was $3,000 presidential suite. to me that is the more egregious example than the fact that they ran 220 different conferences. >> think to add to your point, the money was set aside to hire more enforcement officials, to hire more people. instead, they made a little entry, accounting entry and moved it over to their party budget and big conference instead. it double as taxpayers. one they are wasting our money and money that was supposed to set aside to help us we lose completely. >> it doesn't have to be this way. the irs has a $12 billion budget. that is $42 for every man and woman and child in america.

six months of netflix just for the budget of irs. flat tax could reduce that expense by about 935%. the government would never go for it because it doesn't punish the rich to help the poor. that is worth something exploring. >> neil: i wanted to ask wayne this. when irs came to congress and raised their right hand and swore under oath. doug shulman who had been cleared by the white house 157 times when asked what he was doing there, you know, i went to the easter egg roll. that is just con tell us on -- ton temp ui us on to the american people? >> they are self imbuid with power. nobody is watching the store.

they think they are independent. the fact, this exists throughout the government. each one of on these agencies have found themselves so to speak powerful within itself and nobody is coming them. it's getting worse and worse. big government is on theory that is pervasive throughout what we are doing and it has to stop. >> eric, you talk to any event planner out there. they do have a big lavish conferences like this. for companies that have the money to spend, all the power to them. irs doesn't have this kind of budget. to austan's earlier point, they need these conferences. they have to learn what the hell is going on. >> eric: before we move on, tell me, who decided to target conservative groups? we have known it came from cincinnati but cincinnati is pointing their finger at d.c., some lawyer didn't come up with this on their

own? what do you think did it? >> what i think happened, congress is the up this weird situation in which we allow political groups to spend on elections with secret donor lists and we tell the irs 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 irs got in their head, okay, here is how we're going to figure out who is partisan. does it say tea party let's give them an extra check. >> eric: we agree on the details. woo who came up with the details? >> let me say one thing which is if what we find out in the end that they applied this scrutiny to the tea party and to a whole bunch of other groups, i think that situation is very different than if the

irs itself is being partisan. if the irs turns out to be partisan, i think that is a huge problem. it's the president's version of accountability. >> eric: there are no liberal groups that were targeted. if you know of one liberal group targeted, go to my twitter account, let me know. >> only groups that lost their tax exempt status actually were liberal groups, progress whatever group. they had it taken away. >> eric: there are two different issues. targeting conservative groups to allow them to get their tax exempt status where they weren't doing on the liberal groups. last point, jonathan? >> to some point austan is right we have given government this power but by emboldening this power

it's time to cut it. a flat tax isn't even explored in congress these days. your point about the congress -- that would be initial moral step for the tax system that would work and for all americans. >> eric: absolute power corrupts absolutelyly. to snooping sprees, using the internet or talk to the phone, better listen up, uncle sam is tapping major internet and cellphone companies. is anyone's privacy safe? >> it seems like an invasion of privacy. >> there is no reason to know who i'm talking with. >> doesn't make you feel comfortable. big government is not a good thing. when i got the call from adt, my heart starting racing.

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♪ fox news alert. new details concerning a shooting rampage that left five people in santa monica college. they are calling it

premeditated saying the gunman had 1300 rounds of ammo. he apparently killed his father and brother before highjacking a car with a woman inside. he made several stops shooting people at random before entering the college library where police shot him. >> nelson mandela's condition is serious but stable. he has been hospitalized for lung infection. this is the third time since december since he has been hospitalized and health problems dat to his decades' long incarceration as a political prisoner in south africa. we'll see you at 6:00 p.m. now back to "cashin' in." >> eric: privacy becoming harder and harder to find, outraged growing over a new report in washington that they have been mining data

from all the top internet companies for years and same with the phone calls. the government demanding to get their hands on payer phone records in the fight against terror. jonathan, you ain't buying it. >> they are fighting terror by monitoring surveying american citizens? spying on reporters, on innocent people making phone calls or searching the internet? i think it's dubious. at the same time you are spying on the american people, you got a president who has spending hundreds of millions of dollars muslim brotherhood, doing nothing on benghazi, apologizing for islamic jihad i and why aren't we targeting on terrorists? >> eric: are you concerned that every time you google something, big brother is having a look what they are up to? >> i hope they like the heels i ordered the other day. [ laughter ] >> i'm very concerned. you know this is not going to stop. it started with your soda.

they are coming down on everything. i get the notion they wanted to keep us safe but there has to be a way to be transparent at the same time. otherwise i'm loving those black heels and i hope you are, too. >> partisan line drawn here, other people say, way, way too much government overreach. >> i think a couple things first. i thought i'm going to get rid of red cross is and i'm going at&t and then we found all the carriers. national security part of this it's notable on a bipartisan basis all the senators from the senate intelligence committee who actually know what is going on -- which we do not -- they come out on bipartisan basis and they say they support it and it's important for the country to have this ability. the issue on the internet they are focusing on people calling overseas. if you find that five

different suspects and people you are looking at u.s. are all could calling some house complex in abadabad, pakistan it probably could be important to keep the number. other thing, i think when you click on the user agreement, i agree with these online companies. you haven't read it. >> eric: that is very important. >> the government is going to monitor or remove. >> i don't like the government spying, but i don't like google or whoever is spying either. they are collecting it all and selling it to people for money. >> eric: the overreach the fourth amendment says be careful for unlawful search and seizure, is this unlawful search and seizure? >> yes, it is. the patriot act is very specific. how you gather this information. this has been done indiscriminately and in bulk.

under the patriot act there has to be a suspicion of wrongdoing. judge that allowed them to go and get this information, i don't know what he saw, we don't know what he saw yet. that maybe important, but in the meantime, if the possibility of abuse, the possibility. imagine giving eric holder this kind of information. you know what he is going to do with it. he would violate the constitution rights in a second. >> eric: everybody was on george bush about the patriot act this seems the patriot act on o steroids, comment? >> i think this is exactly what george bush did. on the upside and downside. i find it odd to see the same people that were saying it was great when bush did condemning the president. >> or conversely. >> eric: we're going to have to leave it there. and most expensive place on

earth, disney has a big price increase. why you want to give mickey an earful and some are saying it's a good thing.

a a>>

forget friday's jobs reportf mickey mouse may be telling us what's up with the economy, disneyland and disney world are raising admissions prices.ar while parents may be cringing, tracy, you say there is a silver lining. >> 'cause parents will keep payinguldr it. your little one wants to go see cinderella, you are going to scrape pennies -- >> you better be more

interested. a >> fine. he wants to go see tarzan or something. you're still going. i think>> the upside is that mue mean people have extra money in their pockets or are willing to charge it or do something. but they're still going to disney world. >> goolsbee, take a victory lap. disney can afford to raise prices. >> well, yeah. look, i would say the jobs report was respectable, but not great. let's not take a victory lap yet. i think that's right.thin i think her insight is -- that's probably a sign that tourism, economy is coming back and that is a big entertainment, tour civil a big driver of the economy. let's just hope it's not only ai sign that there are foreigners who have a lot of money who areo coming and increasing the demand at disneyland. if it's just that, that's not going to j bodeus well. >> wayne, disney raised theirce prices 100% in the last tens. years. i'm pretty sure americans' income hasn't gone up that same

percentage? >> you make a good point. g disney raised its prices every year for the last ten years. so this is not new. this is not something that is saying that the economy is finee this is cost going up.up. this is the threat of inflationi we've got commodities that have gotten substantially, cotton, lumber, etot cetera. you better look out for the federal reserve policy. they're going to take the wraps off and we're going to seeps inflation in a big way. >> wayne hits on something important. a lot of water rides water prices are skyrocketing. people don't talk about that. prices going up. >> they use bottled water. >> i know. that let me get jonathan in. >> mr. toad can barely afford it. no one is taking a victory lap for my jobs growth, at least under this president. wayne hits the nail on the head. coffin times rising prices can give the appearance of growth, when in actuality it's the appearance of inflation. there is no such thing as freeis

lunch. we're starting to see the net effect of all thisatst intervenh from thee fed on down, it's higher price across the board, can including disneyland. >> i got to tell you.y i think you're all overthinking it. i think mickey mouse is saying, they're going to keep coming regardless of what i charge. >> where is my economist, is that what we're talking about? >> core inflation is about 1%. it's below the target rate thatt the fed has been searching for. so i think this argument that this is the sign of imminent hyper inflation is ridiculous. >> yeah. >> we need to point this out. universal studios also raises their price and they're upn around $92, i believe, or $95 as well. so i guess we're paying for it, right, wayne? >> we're going tore pay for it,

with all due respect. i don't know whether you've beed watching what fed policy hasrigh done, you're going to see an increase in bond yields and you're going to see an increase in inflation. and i'll be happy to bet you ony it if you want to put some real money on it, some personal money, we'll bet and i'll say inflation will be much higher next year and -- >> you got a lot more money tha i got. i need to be careful. >> i think i know more than you do aboutut inflation. >> oh! listen, maybe -->> >> historic lows, of course the they're going to go up.ll g >> you know what? we invite you every month. maybe we'll take the temperature next month and the month afteret that. we'lle n say thank you very much mr. austan goolsbee. coming up, a teacher under firea for suggesting the students get in a corner office and focus on being mothers. we'll hear what tracy thinks

next how'd you d9 out of 10.iz today? 9 out of ten? that's great. ♪ nothing says, "i'm happy to see you too," like a milk-bone biscuit. ♪ say it with milk-bone.

all right. time for what do i need to know for next week. tracy? >> social study, basically says the girls really should stay home, focus on the family. i get it. being a mother is the greatest the plannity. but damn it, go out there and get what you want! >> you're up, wayne, quick. >> well, the last six weeks i've been suspicious of this run up h in the market. the last few days has proven that true. johnson & johnson is more solid. >> very interesting. consumer staple.e. mr. hot hand, you're on, i jonathan. >> mother-in-lawing markets are ice cold. -- more thanking markets -- emerging markets are ice cold. n i own nge. i think it goes higher. >> you were on the interest rates, i think you'll be rightts and continue to be right on thai one. we'll say thankon t you to ever. that's it for the cost of freedom block. thank you for joining us. you can weigh in on all thegh topics we just discussed on

twitter. havee a great weekend.er i'll see you on "the. five". >> want to know what happens when the president doesn't have his teleprompter?ant this. >> i want to thank everybody who is here. i think there is only one problem and that is that mys remarks are not sitting here. people? [ laughter ] people? oh, goodness. folks are sweating back there right now. >> you bet. hello, everyone. i'm i kimberly guilfoyle.erly it's 5:00 o'clock in new york city and this is "the five"