action-packed hour. >> scott walker will be here is david boss. >> it is international waffle day. join us, foxandfriends.com. >> i'm neil cavuto and you are watching the cost of freedom. what is done is done. that does not mean other things are happening because we are noticing quite a little activity going on and we will share that with you for the next two hours. we are live with donald trump doing a lot of work today and tax cut have become front and center. we are live on capitol hill

where we are told republicans are rallying around something their critics say they should have done in the first place, tax cuts and big ones and maybe sooner then you think. we are live on for the lack of a better main street. you want to see action out of this congress and this president and both parties come together on something near and dear to you. what is on your agenda? what do you want to see? we get the latest on some things developing in providence, rhode island, a rally on behalf of donald trump and we are told this was scheduled to anything happening on capitol hill. a reminder there is widespread support for a presidential agenda that if you were to read the mainstream media you might have thought was dead and buried. not so. at the white house, how a working model trump plans to pursue the agenda. >> reporter: if obamacare folds,

falls apart, costs keep going up in states across the country that is on the democrats, nancy pelosi and chuck schumer. that is the message from the white house in the wake of the disappointing day yesterday as republicans on the hill were unable to marshal the votes to repeal and replace obamacare but keep this in mind, this is not the end of the story. we are only 65 days into this administration so the work does continue at the white house. they could move to tax reform and other things that might rebuild the momentum. the disappointment yesterday even the president couldn't hide his exasperation. >> i'm disappointed because we could have had it. i am a little surprised. we really had it. it was pretty much there within grasp. i tell you what is going to come out of this is a better bill.

there were things in this bill i didn't particularly like. both parties can get together and do real healthcare. that is the best thing. >> reporter: that is the best thing and that is the mindset at the white house. one more thing to share with the folks at home. a little inside baseball if you indulge me. despite whispers to the contrary there is no one on the gop side of the aisle that is interested or attempting to replace paul ryan. he is going to bear the brunt of much of the criticism in the days ahead, to marshal the votes to repeal and replace obamacare but despite the fact that yesterday was humbling and disappointing he is not going anywhere and has the full support of the president. the president will have a little fun in early afternoon then back

to the grind. heather: 8 kevin brady was telling me that you lick your wounds so long before you get ready for the next battle and that battle is completely revamping the tax code, big tax cuts and the chairman telling me all except for that. >> we made it clear we are going to take committee action, move the tax bill forward. we have an august timetable going forward. that is where we are on tax reform and we are moving forward starting this minute. neil:you might recall steve mnuchin said that was his goal will we get tax reform, something on which republicans have broad-based agreement. the fight on capitol hill turned that around.

what are you hearing? >> reporter: tax reform is something they want to do. they need some wins on the scoreboard very soon but before they get the tax reform they have a couple issues they have to grapple with. by the end of april they have to fund the government, a controversial issue and raise the debt ceiling this summer, you can see where you get a conflagration by another artificial timetable the treasury secretary laid out, trying to do tax reform by august but they have to get through the first two fights of funding the government and raising the debt ceiling and talk about paul ryan, trent lott, former majority leader in the senate, when you get into leadership you gather barnacles. paul ryan gathered a barnicle yesterday but whether he can shake those barnacles and pile through tax reform, keeping government open, raising the debt ceiling, these are tough issues, the good thing about tax reform from the republican perspective is they can get some democratic votes.

the issue of repealing and replacing obamacare they had to do unilaterally. this does make tax reform more difficult but it does not in any way make it impossible. we will proceed with tax reform and continue with tax reform. >> reporter: they have to figure out a way to get there. it is very challenging, no concrete deadline with they have to do it aside from the arbitrary deadline of august. they haven't done and comprehensive tax reform since 1986, 30 years, there is a reason why. tax reform in a way they wanted, it is a good campaign issue, i want to lower taxes, repeal some of the taxes out there and makes it easier, that is great political issue to campaign on but they have not ever -- never got there. that is where obamacare is going, great issues to campaign on, to repeal and replace

obamacare, republicans campaigned on that as we for consecutive elections and don't have it yet and won't have it next time. neil: it is not a done deal. looking at wall street, it added seven straight down sessions, relatively holding its own, believing the tax-cut the coming. i don't know if it is a given that they won't have disagreement. >> this would have been a huge political win for the president and paul ryan but to wall street they see it as shaking a girlfriend when you don't want to get married. now they turned to tax reform, house and senate republicans and that could be in easy when, better news for wall street, everyone loves lower taxes, not

everyone loves socialized medicine. some tough wounds by the speaker and president but if they turn and get this win it will be a huge political victory, they can gain the capital back and go back and cross legislation that makes sense to more factions of the party, many of whom defected yesterday. neil: not all agree how to go about tax cuts, i want to bring in gary, charles payne, one of the things that have come up, tax cuts would be easier to ram through but there is concern among some republicans, conservatives as well who don't like the deficits and it might not be such a thing. charles: what was the argument for obamacare? get a certain amount of tax cuts. that you could apply to the next

budget. that is why it was first. and of course the border adjustment tax came up because when you start to score these things, scoring does matter. it says the debt will go higher. another thing like obamacare, republicans campaigned against for the past week years, higher debt, rising deficit, but supply-siders counter argue when you have an economy where there is -- money does change hands. when i leave and go to the hot dog stand i by $10 worth of stuff from them, you ever by new york city hotdogs? that is the buzz. he takes that money and spend it, people understand instinctively businesses and individual households sat on their hands. velocity of money makes up for taxes the cbo is going to score. there will be a debate on that but after this debacle republicans will come together and i want to point out to

people amazing things are going on in this economy overshadowed by washington dc. neil: and the media. they love to ignore it. one of the things i heard about trying to get the tax cuts going is republicans are divided on that, especially the border tax, retailers are going to do their darndest because it hurts to them, fortune 500 guys love it like boeing comes to mind, but they are going to be pushing their views, all these groups, what they want to see, on the same republican congress. >> you better. let me state it clearly. they better get the taxes done, get something done, get a win. markets this week, every time, was set a vote was going to be good, the market went up and the vote was bad the market went down, you can time it to the

second and if you are of the belief that $3 trillion of wealth was created because the market put confidence into this administration and proposals are getting done then you better make sure something gets done, $3 trillion will dissipate pretty quickly, these republicans have to realize no one will get 100% of what they want, that is why they got to come together. neil: i think there is going to be a damn the torpedoes type thing, a lot of deficit weary republicans are going to say even if these tax cuts are not paid for we will ram it through and get them because this is something the majority hangs on. >> ramming it through is a horrible idea andore of them are coming to terms with that. there has to be rational legislation. neil: does that mean revenue neutral? are all republicans going to

demand the tax cuts be paid for? that gets them in the same pickle with healthcare. >> i don't think they will demand the same thing at all. neutrality helps you build a broader consensus. they don't need force. they need math and we will see if they can accomplish it. wall street had a positive reaction to the healthcare legislation anticipating tax reform. they are going to need to see, the border adjustment tax is not a done deal, a huge rift in the party right there that shouldn't be a deal killer. neil: they don't have a lot of wiggle room, the majority in the senate, they have to go through reconciliation, where you want to get a simple majority, bringing you back to more fighting. charles: what people need to

understand is that 20%, that justifies significantly higher stock market. and with border adjustment, going back to 20%, that is where the president will come from. we will try to do something with respect to currency, a lower tax rate than you have already and usher it in down the road but i believe they will get this done and the economy has begun to act as if they will get this done, charter communications announcing massive investment into america. charles: go to their website on the belief that trump relation and tax agenda will be achieved. neil: we will get the latest on devon nunez, members on his committee arguing with him, campaign folks ready to testify through the committee, pat

buchanan weighing that after this. at fidelity, trades are now just $4.95. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be.

>> clarify whether trump associates were monitored. >> we won't until we receive documentation, hard to know where they come from and have time to go through them and see sourcing of the documents. i won't speculate until we get them all. neil: healthcare aside from tax cuts, could have a very big consequence in washington. patrick henry has that issue that devon nunez raised, growing evidence that many in the trump circle including the president, president-elect and before that

were surveilled, that doesn't mean barack obama was directly tapping donald trump's phone as the president alleges, it does show potential that included the now president, where is this going? >> what nunez suggested was there were intercept basically legitimate intercept of targets by nsa, american intelligence picked up comments, they may have transcribed those and the transcriptions may have been spread through the bureaucracy, intelligence bureaucracy on the orders of the attorney general and the white house, and this might have come into the white house. if this is true and nunez has not fully confirmed it, we had

james rosen, you are really into a serious problem here. i think they have come up with a dry hole in the russia connection, the material, roger stone, paul man is of afort are asking to testify before the intelligence committee, james clapper hasn't found any trump connection, mister morrell of the cia said there is no flame, no fire, no spark, this thing could shift very much over to what did the president know, what did the white house know, what was done, no wire trapping, was there surveillance here, the reaction to nunez, the attacks suggests to me in effect the kid has got something.

neil: the play it's gets, the fact that there was nothing happening with donald trump and the ranking member and said the same thing, when he had to come back, the president, the white house saying there might be evidence to suggest you were surveilled and all of a sudden a buffoon. where is this going? >> the thing was nunez was supposed to come up with something, the national security agency, you heard comey went into the white house and this was only -- the fbi director, who did he talk to? did he warn somebody not to march down this road? i don't know. it seems to be alive. the other investigation, the

russia connection, it has been eight months, eight once, we had the watergate, seven or eight guys convicted and headed to a minimum-security facility, they came up with a live connection of who did what, not a single crime, nobody has been indicted. where nunez is going seems more interesting and pregnant, if you will, then the russian connection. neil: the media, democrats, having a tough time understanding where nunez is going with this, some advocating he should go. is that fair? after this. yo out the tube and you spit in it, which is something southern girls are taught you're not supposed to do. you seal it and send it back and then you wait for your results. it's that simple. yeah, 'cause i got allstate.? if you total your new bike,

they replace it with a brand new one. so, kinda like your second husband. kinda. it's good to be in (good hands).

neil: last week at this time the chairman of the house intelligence committee was a rock star hero saying he saw no evidence nor did his ranking member that donald trump's phones were tapped by barack obama. a few days later indications it is possible donald trump was swept up in a widespread surveillance effort to show that he and others in the administration to come were being looked at for potential ties to the russians. now, with that revelation and potential far-flung implications of that many calling for the chairman's head. others saying a special prosecutor is in order, special investigation is in order.

where does the stand? >> what has to happen is the department of justice needs to do an investigation. one thing james comey did not say is an addendum to do but investigation into intelligence leaks. he would not confirm there was an investigation into the leaks. the chairman, there was in fact a form of surveillance including donald trump associates, the president and others raising the issue of who authorized it, why was it authorized, why did they not minimize it? calling for the chairman to step aside, nothing but political shenanigans. neil: a week ago he was seen as a brave fearless leader to challenge his president on this issue. leading that aside i wonder how far this goes, calling for a special investigation, this is

the kind of thing that could mushroom. i wonder if they have found much and moved this, when did they know it? >> there is not much to this russian connection issue. there is a lot to what is engaging in surveillance. and they engage in an investigation, it should be done privately but they have access to know who got the material and who was being surveilled. the president, president trump can ask for this information, he is commander in chief, what do you have on me, my family, i want to see it. neil: when it meant with james comey -- >> exactly what the meeting could have been about yesterday.

the president is concerned about it. the country should be concerned, republican, independent, doesn't matter, this is an issue -- something clear, when they were pressing at the hearing, a wiretap, and not as artful as it should have been, you don't have to have wiretap for surveillance, it is not just done by wiretap, this is not 1960, we are in 2017. the idea there was no wiretap of the president obama wasn't responsible, who knows? somebody knows. the surveillance took place under president obama's watch. neil: if the prior administration was so concerned about russian intervention in the election it wouldn't be beyond the pale to consider that

he would look at trump is and who they were talking to and no less then donald trump caught up in that. >> the interesting issue is manafort and roger stone are willing to testify, they want to testify before the committee, i think there will be a nothing bomb here, nothing. i don't think there could be anything. the real problem is the intelligence leaking, surveillance of the president when he was the president-elect or republican nominee, when he was the president-elect, the obama administration never explained changing the collective order where they authorize signal intelligence going from nsa to being distributed, in the last 17 days in the administration, they were fine with it, change it at the end, i wonder what that was about to q >> good seeing you aga

working on tax cuts, they have better luck there. in maine they are fighting over different issue and surcharge on the wealthy, 3% surtax on the wealthy is no less, if this goes through and keeps happening he and his wife would move out of maine. the governor is next.