josh holmes, it wasn't bad, right? >> no, thank you for having me. >> "happening now" starts now. >> melissa: a fox news alert from fox news global headquarters in new york, president trump set to meet with a bipartisan group of congressional lawmakers an hour from now at the white house to discuss tax reform. >> jon: this follows a dinner the president hosted yesterday with several democratic and republican senators on the same issue. meanwhile, the president preparing to see firsthand damage from hurricanes before when he travels tomorrow to florida. we are covering all the new "happening now" ." the effort to return to normalcy still a work in progress. where things stand right now in the sunshine state and beyond. >> he went outside the chain of

command and politicized an investigation into a presidential candidate. >> jon: the white house says the justice department should look into charges against the former fbi director. and south korea taking a page out of the north's playbook. what the u.s. ally is doing to scare the rogue nation. it's all "happening now." but we begin with a fox news alert on tax reform for the second time in as many days, president trump will host a bipartisan group of lawmakers, this time from the house. the president apparently hopes to deliver on a campaign promise that will affect millions of americans. hello and welcome to the second hour of "happening now," i'm jon scott. >> melissa: i melissa francis. 14 lawmakers from both sides of the aisle will meet with the president about an hour from now at the white house. this follows a dinner the president hosted last night that included three moderate democratic senators up for reelection in states mr. trump

won. kevin corke is live at the white house with more of this. >> really strong politics at play. essentially what the white house wants to do is bring people to the table who are either centrist or considered politically flexible and pair them with the best deal makers on the other side of the aisle and see if they can get some bipartisan support for tax reform, daca and may be down the line health care although that may be a bridge too far. that meeting is coming up today at 2:00 and something we call a spray around here, i suspect the president will likely say something. either way we will get you pictures and sound as soon as we get them. in addition to congressional lawmakers, the president's top money men will be there. one of the major goals obviously, a corporate tax rate of 15%. white house officials say gatherings like today's

underscore the president's commitment to change the way business is done in d.c. >> he has come to washington as a disruptor but he was a successful businessman for decades and he brings those skill sets to bear on this a job in that he's an excellent negotiator, excellent listener and wants anybody who is going to support his agenda committed to representing, he wants them to come to the table. >> counselor kellyanne conway to despite all the noise and construction happening around here. the president will also have dinner with chuck schumer and nancy pelosi, the latest effort to work across the aisle to enact his agenda. they will also be quick to point out the president proved his willingness to do all that during the debt ceiling circumstance not long ago. we will have all the details not

just here but also throughout the evening to see what happens. >> melissa: i would like to pour the wine at that dinner, come through and listen to what's going on. i just want to hear it. kevin corke, thank you. >> there is no secret comey by his own self admission leaked privilege government information weeks before president trump fired him, comey testified that an fbi agent engaged in the same practice. he set his own stage for himself on that front. his actions were improper and likely could have been illegal. >> jon: white house press secretary sarah sanders yesterday saying the president was 100% right to fire james comey. let's talk about it with the associate editor and columnist at real clear politics and the senior writer for the weekly

standard. why is this coming up now? is this having to do with the steve bannon interview on "60 minutes"? >> i certainly think steve bannon's character as distant firing of james comey as the worst mistake in modern political history prompted the president's reaction and he wanted to push back and he is doing that through his spokeswoman. in the months that have passed, the team around trump has convinced him that though he would like to fire bob mueller, that will be the worst act of political suicide he could pull off. he is taken a step back from that with the revelations that the senators talked about ten days ago, that they found transcripts from an office of special counsel interview with comey where he reveals he has started to write a memo

exonerating hillary clinton before he even interviewed makes him a discredited witness in this investigation. i think character attacks on james comey as a credible witness in this investigation are going to continue in the weeks and months to come because they know the investigation is heating up and going broad and that's making people around the president very nervous. >> jon: clearly this is a topic that occupies the president's time and occupied some of sarah sanders briefing yesterday. let me play this for you. >> i think we've been pretty clear what our position is, i think that's been shown in the days that followed that the president was right and firing director comey, we have learned new information about his conduct that only provided further justification for that

firing including giving false testimony, leaking privilege information to journalists, going outside the chain of command and politicizing an investigation into a presidential candidate. >> jon: that was from monday, not yesterday's news briefing. this is taking up a lot of oxygen at the white house. again, the question remains, was the president justified in firing the fbi director? >> it was certainly his right to fire the fbi director but it is still in question whether or not he should have done it, the circumstances under which he did it, he basically said it was because of this memo from the deputy attorney general and a couple of days later said it was the russia investigation and annoyance he had that james comey had told him privately that the president was not under investigation but was not willing to do so publicly. you heard from sarah huckabee sanders a little bit, some sort

of explanations as to why it was right to do so. i think going off of what they said, the white house was dealing with some pressure on the firing. so mature for about a couple of fbi officials the senate wants to interview that the investigations as they would like to keep. it suggests that bob mueller is looking specifically into the question of whether or not donald trump was right, did he obstruct justice when he fired james comey? they are trying to make the case that they were justified in firing him. >> jon: according to "the daily beast," the trump campaign is turning over documents in his investigation into russian interference in the

2016 election. that is clearly something the white house is unhappy about, these constant references to russia, vladimir putin, did russia somehow influence the election? >> that's where the investigation started but now mueller is looking into two things. the firing of james comey and whether through trump's admitted statement about it being about the russia investigation and also the crafting of the response to the john jr. meeting and whether those people who were around him on that plane home from germany were also involved in crafting a statement that wasn't entirely true and of those people have lawyered up. it's becoming very intense in the west wing among the staff who feel they've been brought into mueller's web.

i think what michael raises about the cnn reporting is really interesting, it appears that the department of justice is trying to protect the investigation by not allowing the very few fbi agents who knew about comey's dealings with trump to go testify on capitol hill because they don't want it leaked. it always comes from white house lawyers or those subjected to investigation who hired the lawyers or comes out of congress. none of the stuff was leaking out of the mueller investigation and it appears the mueller investigation is trying to make sure those witnesses who speak about the firing do not speak to enough people that that word gets out. witnesses in the west wing learn of what they said. it's definitely getting very intense and that is why you are reading these accounts about how upset they are. >> jon: what about the sarah sanders suggestion that the department of justice should take a look at investigating or

even prosecuting james comey, is that actually under way? going anywhere? >> your guess is as good as mine, i can't get anything out of the justice department. i think this is more of a p.r. move, suggesting there could be real credibility problems. it does seem a little inappropriate for the white house press secretary to be talking about this and sort of suggesting from that position that there should be a prosecution. i have no idea if there's any prosecution under way but i will say this very quickly about the mueller investigation. this is all going on whether or not those of us in the media know about it, certainly the mueller investigation itself is keeping a tight lid on leaks. this is something happening even if we don't know about it, that's why we keep learning new bits of information.

>> melissa: this is a fox news alert, 16 people in a nursing home in southern florida as hurricane might hit the state are now confirmed dead. florida power and light saying the nursing home was not listed as a top-tier critical infrastructure facility in broward county. and much farther north up the east coast of florida, jacksonville deals with surge flooding and hundreds of water rescues. now it is time to clean up. peter doocy was one of the first reporters on the scene of this historic event and he joins us now, what does it look like today? >> we just got back from a shelter where we met and evacuee named ricardo, he evacuated from key west to jacksonville. he still hasn't heard one way or the other how his place down in the keys fared and since he

can't afford to wait for a word about how things turned out down there for him he is just going to start to put down roots here. >> right now i have a van and i'm going to try to get a job around here so my fiance and i can get out of this place. we appreciate it but we want to try to get out of here. >> you are not going to try to go back to key west? >> that is out of the question, it is too expensive and too hot. >> the mayor says power restoration will be the priority for the next several days, he plans to press the power company to keep the 113 113,000 customn the city alone better informed about how they are going to be living without lights or air conditioning. >> just knowing they are there, they are there for us. at the end of the day we are going to need money to put this thing to bed and rebuild.

they are doing the right thing. >> this is what's left of the st. johns river storm surge from two days ago. the banks of that river about 1,000 feet in the other direction. anybody that wants to come through, businesses and restaurants which you look like they sustained some water damage have a little island of the main road to go through. the business owners we have seen have been hauling equipment and drywall and furniture and floorboards out into the street. that is a sign of the cleanup just beginning. it's going to be a very difficult process for a lot of people in jacksonville. >> jon: is north korea's leader kim jong un latches out after being slapped with new u.n. security council sanctions, there is a report one nation is mobilizing a decapitation unit. plus, the u.s. ambassador and three other americans killed in 2012 at the u.s. consulate in

benghazi, now some five years later two government contractors who worked for the clinton state department are breaking what they say was therefore silence. people would stare.

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>> melissa: new information about the 2012 terror attack in benghazi, libya. the assault on the u.s. consulate lasted for several hours, leaving 4 americans dead. now people are speaking out saying the clinton administration forced them to keep quiet about direct security concerns. catherine herridge is live in washington with more. >> in the spring of 2012 a security company bid on the benghazi security contract. and ultimately lost to another country. the situation was so bad by august of that same year that

the state department in washington asked at their company to step in as soon as possible. >> can you guys come in and take over security? we were ready. unfortunately 12 days later the ambassador was killed. >> after the coordinated attack that included a precision water strike on the cia base, contractors say they were told not to talk to reporters and not to cooperate with government officials investigating benghazi. by early 2013, the head of tourists told fox news he was summoned to the state department office building in virginia and pulled aside by the contracting officer responsible for benghazi, who said she wanted him to back up her position that local guards should not be armed at the u.s. embassy. >> was the state department contract officer trying to silence you? >> the u.s. ambassador is dead and nobody is held accountable and three guys who try to defend

him all died. >> the people who made the choices were more responsible for the benghazi attacks then anyone else, they are still in the same position making security choices for our embassies overseas. >> we asked the state department to make the contracting officer available but they did not do so, we submitted questions by email and they declined to answer those. we reached out to the original security firm that got the contract but there was no response from then. the congressional committee wants to talk to the tourist team to find out what happened with the contractor and whether there was an effort by a government official to intimidate them. >> melissa: just astounding and the people still in place that let this happen. astonishing. great reporting, thank you. >> jon: president trump trying to make a deal on tax reform as the nation's debt passes the

$20 trillion mark. how will the president pay for tax cuts to individuals and businesses in his proposed plan? house speaker paul ryan saying we should know more details in about a week and a half. >> the committees are working on what outlines of a new tax system needs to look like and the outline reflects the consensus of the tax writers in the administration, which is a base template the tax-writing committees will work on.

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look at other options. >> melissa: that's white house press secretary sarah sanders on tax reform as the trump administration pushes to fulfill one of its biggest campaign promises, the white house looking to make a deal as the national debt crosses the $20 trillion mark. the president getting ready to host a round table with house lawmakers on both sides of the aisle. it follows a bipartisan dinner last night where tax reform was on the menu. joining us now, former advisor to president clinton and new york city male mayor michal bloomberg. thank you for joining us. doug, i will start with you. i heard senator joe manchin talking about that dinner and the first subject according to him was about infrastructure. to me that says the president and his group realized that tying those things together

might be a good idea and a good way to get democrats on board. >> tax reform is going to be a very contentious manner. the idea i think is if you put everything together and tie it to infrastructure it might get the democrats who are finding some of the tax cuts more acceptable with infrastructure. >> melissa: when you look at what they might be thinking, it sounds like they are talking about telling companies that they have to somehow be part of that public-private partnership to invest in infrastructure, it would be a way to get some democrats on board who want the infrastructure and might live with the rest of it, could it work? >> this is a strategy a lot of conservatives have suggested to

the white house and to g.o.p. leadership from the the get-go. start with infrastructure, get that low-hanging fruit, build your political capital before you move on to more contentious matters. it looks like the g.o.p. leadership is not on the same page as the president of the united states, who has long broadcast and talks about his desire to work with democrats to get tax reform done. he had steven mnuchin meet with a modern democrat back in march. meanwhile g.o.p. leadership look like they want to pass it on a partisan basis. it basically it would only require 51 votes. that's not what the president wants and not what republican voters want. republican voters do want to see some bipartisan outreach. >> melissa: it didn't work to try to do things across street party lines. there should've been enough people, it didn't work out.

now he isn't like forget it, he is a candidate who ran against the establishment. could that work? >> the debt ceiling agreement, while a small matter, three months, kick the can down the road is i think a harbinger of good and a harbinger of good precisely for the reasons amy suggested. it opens the way for president trump to get to the democrats who want to do business, particularly the ten democrats in states that donald trump won, this is a huge opportunity. the trump presidency can be transformed successfully with tax reform and infrastructure and if neither of them get past, he will stay low in the ratings. >> melissa: the next question comes, does he risk alienating part of the republican party by going this route?

do you think it's true, doesn't matter? >> just recently the head of the freedom caucus that gave john problems and has been a thorn in the side, he said he was willing to work with the other side. he said obamacare was a big disaster for republicans, will they stick to that? that's a very good question. tax reform is so thorny, which rates do we keep, which do we give up? if we cut taxes, we grow the economy. these are big debates. >> melissa: thank you to both of you. interesting times. >> jon: that's for sure. in the meantime, north korea's leader reacting to those new u.n. sanctions, calling the

unanimous decision by the security council illegal. why our next guest says china's financial system may be the key to reining in kim jong un. plus families now returning to the devastated florida keys to find what is left of their home homes. >> since the storm you haven't even seen your home yet? >> if we have one. everyone left and you can get a hold of the neighbors that are there that we know of. patrick woke up with a sore back.

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>> melissa: a fox news alert, the department of homeland security just issued a ban on kaspersky software products. in the wake of an investigation of russia's interference, into the 2016 presidential election. reports have suggested ties to russian intelligence. the company has denied those allegations. >> jon: this fox news alert, north korea lashes out at the latest u.n. sanctions: the sanctions vicious. that rhetoric to go days after u.s. ambassador to the u.n. nikki haley issued this reminder to the world.

>> these are by far the strongest measures ever imposed on north korea, they give us better chance to halt the regime's ability to fuel and finance its missile program. we all know the steps only work if all nations implemented them completely and aggressively. >> jon: i am joined now by gordon chang, the sanctions were not as tough as the u.s. wanted but they are tougher than has been in place before in china back to them. >> yes but china has backed the previous eight sets of sanctions, this is number nine and they are just a marginal increase over number eight. the real problem with sanctions as these are half measures and because of them we are going to wait to see if china and the international community enforces them but we do not have that much time.

we don't have very much time to figure this out. ten years ago we could deal with half measures, but not now. >> jon: of these are half measures, what would you propose as full measures? >> we do need a blockade on north korea to make sure north korea doesn't sell missiles to iran or chemical weapons to syria. we have the authority to do it. we don't have the authority in those u.n. sanctions which were adopted on monday but because the north koreans have aggregated the korean war armistice at least three times, that means we can sink north korean ships. if we had the authority to sink ships we have the authority to board them and inspect for weapons. the north koreans have been selling everything they thought in their arsenal, we cannot allow this to continue.

unfortunately we've been doing that for two decades. >> jon: the key is china but again, china did vote for an increase in sanctions, what leverage do we have against the chinese? >> enormous amounts of leverage, for instance the biggest chinese banks have been money laundering for the north koreans, that's a violation of u.s. law. without dollars it is essentially a death sentence. the other thing is we have a much larger economy than china is 18.6 trillion last year. big economies can push small economies around. also we are the trade deficit country, we ran a trade deficit with china last year. trade deficit countries don't worry about trade wars. the chinese can huff and puff but we hold all the cards. >> jon: because of the money they are getting from us.

>> absolutely. >> jon: let's turn our attention to another story, the south korean government is forming a so-called decapitation unit, that a parent tactic aimed at bringing north korea to the negotiating table. what do you think of that? >> they are not only doing this, they are talking about it in public. they are trying to get some sort of deterrent against the north korean leader to say look, if you actually do something we are going to kill you. the south koreans don't need to talk about this, we need to increase our capabilities. you would expect every military to be planning to do this, this is nothing new. of the south koreans i think you're just trying to create some publicity. there are a lot of things we are looking to do in addition to decapitation squads. >> jon: we will get into some of those things in our next discussion, thank you.

>> melissa: another fox news alert for you, fema saying hurricane irma damage 90% of the homes in the florida keys. federal officials also saying that 1 out of every four homes on the keys were destroyed completely. now people are coming back to see what is left, phil keating is live, what is it like today? >> it's hit and miss. it pretty much every single structure has damage, some are worse than others. if you are on stilts you made out pretty good despite the fact this was a category 4 hurricane with 140-mile-an-hour winds and of storm surge of five, six, 7 feet. trailers like this did not fare so well, this was completely destroyed, primarily from the window. again, storm surge raked over this whole island. damages everywhere on the side of the street here, a lot of

people evacuated. we did find a guy who actually stayed here, did not evacuate and wrote it out, he showed us all the debris and damage there at his house. he said he stayed and did not evacuate because he had a little maltese terrier, take a listen. >> it was insane, the wind was probably 150 or more. after the center of the hurricane passed it was a disaster. >> you see there on the wall of the trailer here, it's been searched for a body and on the bottom zero bodies found, they continue search and rescue operations. fema declared that between key west and key largo, 25% of all homes have been destroyed. about 90% have some damage in

some sort of way. driving in today there are piles of debris, boats in the road, sand blocking access from driving on the road, a lot of work has been done in the past two days since the hurricane blew north, progress is working fast. you see helicopters and military everywhere, people are working hard and working fast. >> melissa: a lot of people have to find a new place to live. thank you. >> jon: this fox news alert, k hq is reporting to deputies reporting to a shots fired call outside of spokane, washington. it details very sketchy at this point, they have multiple crews heading to the scene.

again, this is taking place in a school near spokane, washington, reports of shots fired and a suspect in custody. more details as we get them. in the meantime, senator bernie sanders about to introduce his single-payer health care plan and it's getting a lot of democrats support. but is it dead on arrival in g.o.p. controlled congress? south carolina senator lindsey graham says it's not the answer to our health care problems. >> under bernie care, you complained to a faceless bureaucrat. this is the defining site for the future of health care, this is the most important thing i believe i will ever be involved in.

>> melissa: right now senator bernie sanders' getting ready to make a push for single-payer health care. he and his senate partners are

set to announce the act moments from now. james rosen is live from washington with more. what do we expect? >> it's a measure of how far left the democratic party has shifted in the seven and a half years since president obama signed obamacare into law. a single-payer option, too controversial for mr. obama proposed even though he personally supported it is now backed by one-third of the caucus and most of the parties leading figures. the news conference at which bernie sanders will unveil his latest attempt at the single-payer legislation will offer the clearest test yet as to whether the independent senator from vermont can translate his surprising popularity to the policy arena on capitol hill. already signing on as cosponsors are some democratic senators.

all potential presidential candidates in 2020. two party figures declining to endorse the measure are the respective house and senate minority leaders, nancy pelosi and chuck schumer. i don't think it's a littman lt for democrats. right now i am protecting the affordable care act. none of these things can prevail unless we protect the affordable care act. however, senate republicans are predicting that the schism over health care within the party will divide them as deeply as it has the g.o.p. >> there's a fascination with republican primaries but i think we are going to start seeing a number of democratic primaries in 2018. you have this litmus test on the left, whether or not you are for socializing medicine. >> american health insurance plans are eight of the

industries top lobbying groups and have declared their opposition to the sanders plan. >> jon: in case you haven't heard, apple is unveiling its new iphones. melissa is psyched. we are going to take a closer look at iphone x. or is it 10?

>> i'm sandra smith, a horrible tragedy unfolding in florida as at least six nursing home residents are confirmed dead after hurricane irma and reports of a dozen more in critical condition. plus, white house briefing set to begin at the top of the hour,

we will bring that to you live when it begins. and a bright spot on the devastation in florida, we will be talking to her live in the 2:00 hour on "america's news headquarters." >> jon: a fox news alert as law enforcement is responding to a shots fired call at freeman high school. this is in rockford just south of spokane, washington. you can see this video just posted over the school, an ambulance backing up there. sheriff's deputies and other law enforcement cars in the parking lot. reports suggest there are injuries and the suspect is detained. khq has a number of schools heading to the scene, all of the

schools in spokane are being placed under a modified lockdown measure. >> melissa: apple unveiling yesterday new versions of the iphone 8 and the iphone 10 we think. each device will be getting one now, if not sooner. >> jon: far apple is getting positive feedback from critics but what are consumers saying? the fox business network is live from the apple store off broadway in the upper west side of new york city. >> $1,000, you know that is the price point for this iphone x. we've been seeing people all day, asking them if they are going to splurge or not, here's a collection of some of the more colorful comments we've heard.

>> that seems too expensive to me. >> absolutely. of the face recognition, the screen, i will say yes. >> what i have is good enough for my needs, i don't need the new fancy things they have added. >> doesn't come with a parking spot? >> it better be a lot more bells and whistles for that much. i have a 7 and i'm okay with it so why would i buy this next one? >> just to let you know, i would say for every ten people i've spoken with, only one has said no way, not happening, not spending my money on this. some other people have said the price is ridiculous but i'm still going to do it and if you look at the prices of the iphone 8 and iphone 8 plus,

there are a lot of people who say it's not that much more. interestingly enough, we've been in here speaking with apple store employees, they don't have an iphone 10 for you to hold in your hand. a lot of walk-ins are coming out saying maybe for $1,000 they could let us hold one for a couple of minutes, tested out, see what it's like. in this way, this is going to be pretty consistent with the rest of apple products. you have to order sight unseen online. bottom line, a huge test for consumers, let's just call it that. if you look at some of the other consumer electronic goods we've all been buying for years, in the past 15 years, prices of tvs and laptops have come down 50%. you compare that to smartphones, whether it's apple, samsung, those prices and that 15 year

time period have been going up 2.5%. we will see if it works for apple, it certainly has two, iphones make up about two-thirds of their revenue. >> jon: bad news for me, you are calling this the 10. not the iphone x. >> for what it's worth, i soundk the x sounds cooler. >> melissa: president trump is set to meet with a bipartisan group of lawmakers any minute now at the white house.

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>> melissa: thank you so much for joining us, i'm going to get a new iphone. are you going to do it? >> jon: i'm too cheap. when my iphone dies i will get

another one. >> melissa: my screen is cracked, i've been holding out. that's my justification. >> jon: there you go. thank you for joining us, "america's news headquarters" starts now. >> a fox news alert, we are awaiting a white house press briefing which just got moved to a 2:00 p.m. eastern start time. a tragedy unfolds in florida. hello everybody, i'm sandra smith. a criminal investigation more than 100 of them were evacuated after authorities were called in hollywood, florida this morning. just north of miami. >> you know, it's a sad state of affairs. we all have elderly people and