>> thank you to judge andrew napolitano, thank you for joining us. "happening now" starts right no now. >> jon: we start with a fox news alert, republicans prepared to outline their plan to overhaul america's tax system. how would you like that job? one day after the senate stalls on health care yet again, hello and welcome to the second hour of "happening now." >> heather: they are going to try something else to see if they can get this accomplished, president trump hitting the road for his big announcement. he's about to take off for indianapolis, the president will lay out his framework for tax reform. g.o.p. lawmakers left the capital for a closed retreat on tax reform. that's ahead of their public rollout later today. counselor to the president kellyanne conway saying the

g.o.p. plan will encourage companies to bring jobs back to america. >> i think the most important point is that most of the country thinks of themselves as middle-class. they -- people need a tax break. we need to reduce the rates on job creators. we have encouraged businesses to park their wealth and jobs overseas. we need to encourage them to keep factories, plants and jobs here in america. >> jon: chief congressional correspondent mike emanuel is live from capitol hill, we begin with white house correspondent kevin corke in indianapolis where the president will be pitching his plan. >> we like to say it's pretty simple at least in theory, you want to lower corporate taxes, lower taxes in the middle class and in the process stimulate the economy and hopefully spur great growth for the u.s. economy and make a book about it globally.

as we are fond of saying, the devil is in the details. let me share a bit of what we know so far, the president is expected to talk about reducing the number of tax brackets down to three from the current number of seven. also the standard deduction for families will certainly increase, in some cases they will be doubling. as for the corporate tax rate, the president has made it very clear that 20% of the corporate tax rate is a redline for him. the president made it very clear there has to be a middle income tax cut, i think those are his bright red lines. that 20% number is still higher than what they hope for originally but i think it's a recognition that 20% will still do what they hoped to do. as you can imagine, the critics are already out there, some of them are ripping the president's idea before he presents his ide

idea. he said this about the president's tax plan, at a time of massive wealth and income inequality, the presidents tax plan is morally repugnant and bad economic policy. he goes on to add the last thing we should be doing right now is providing hundreds of millions of tax breaks to the wealthy people and corporations in this country. i want to give you a couple of other nuggets here, we understand the income tax rate that credit for children, the child tax credit, that is a big sign for middle-class families. we are told the so-called tax will be done away with. we will see what that does to the economy if they can get it over the finish line. they are back at it again hoping maybe finally they can get something major done here. >> jon: let's see, we will be watching. thank you.

speech u.s. the president travels to indiana to talk about tax reform, lawmakers are preparing to make a push for their plan on capitol hill. chief congressional correspondent mike emanuel is live with more on that. >> good afternoon, tax reform is expected to be the dominant topic on capitol hill this fall and there is great pressure to get it done. key points in this plan are flashing that corporate rate from 35%-20%. and collapsing seven individual brackets down to three. today the senate majority leaders calling for both sides to work together on behalf of the american people. >> many of our democratic colleague support overhauling our tax code and throughout this process i hope they choose to work with us in a serious way. a fundamental overhaul of our tax code is a daunting task, we have a lot of work ahead but

america deserves it. >> this would be a big test to find unity. >> i think its principal that should govern tax reform, growth, fairness and simplicity. number one should be growth, the focus should be jobs and economic growth. a lot of elements we are hearing are encouraging in that regard. >> democrats are pushing back on tax relief for upper income americans but they say they want to be part of the process. >> let's have hearings, let's have people -- i think one of the things they found, you spring it a couple of hours of the vote, that's not a way to do it. >> republican leaders say they are well aware american people are counting on them to get it

done on tax reform. >> heather: life for us, thank you. >> jon: earlier on "happening now" we spoke with john coren of texas about the g.o.p. tax proposal. the senator explaining why he thinks these changes need to happen now. >> right now the tax code has become so complex and so full of deductions and credits on the like that are the product of people working through the lobbyist on capitol hill, we need to reduce rates for everybody, eliminate those deductions and subsidies as much as possible and get the economy going again. this will be the best economic stimulus we can possibly pass in washington, d.c. >> jon: joining us now, associate editor and columnist for a real politics. and post of wma al warnings on them all. we are fresh off another repeal

and replace defeat were republicans on the united states senate, what are the processes for tax reform? >> you heard the majority leader say it was daunting. also talked about how challenging this is going to be, if you thought health care reform was a problem it was going to be -- it will look like a piece of cake after tax reform. what they did today was unifying and exciting, they released some principles to make it look at they're going to do a lot of drastic cutting and some of it well aimed at the middle class. the problem is we don't see a lot of details on how they are going to pay for it. the principal risk is always over fiscal, smaller government and focused on deficit and shrinking of federal spending. if they go all in for something that isn't truly paid for and therefore is in truly permanent

they will still be fighting amongst themselves, like the house freedom caucus who have been looking for a reduction and waiting to be in power with the republican president for this to happen. if you are going to be funding big tax cuts through the deficit there will be a big fight ahead. >> jon: the president's marine one helicopter is touching down as we speak, the president will be taking off for indiana as we said earlier. he is very much on board with this tax proposal, i wonder whether that might make a difference here. he wasn't necessarily always as involved in the health care that came before congress. >> he's been pushing for those 15% corporate tax rate, the outline we are seeing has it at 20%. i'm a little curious why that is started to start at 20, this is the outline they expect to get democratic support on. they will have to move some

pieces of it closer to what democrats want. it seems that they've already given away a little bit heading into this. it is important that conservatives come around to this if the president wants to succeed. we know the house freedom caucus does support the broad outline of this plan which is a big victory for the president as he steps up to the stage in indiana. he's going to want to make sure the republican party fully supports this because he is going to be seeking a couple of democratic votes and get them to support this plan and it may be if they have two, move pieces closer to what the democratic party will be happy with. >> jon: joe donnelly is a democratic senator representing indiana, curiously that is where the president is going to make this big announcement today. what are you hearing from the hill, are any of them inclined to get on board? >> the house problem solvers caucus has 23 republicans and 23 democrats, they've already met

with the secretary of the treasury on tax reform months ago, they have been a part of these discussions. it is not really been the same way on the senate side, all the three democratic senators signed a letter behind the stipulations, that it had to be revenue neutral and couldn't favored the wealthy. those senators that are available are the ones that the senators who were with the president in north dakota on his last tax reform pitch trip and this one, i think those three senators are open to compromise. democrats in the house want to work in a bipartisan way on this. if you are going for a repeal, we can't help you, we're only going to be with you on repair. that is ended as you know in disaster. i think on tax reform you will see more bipartisanship. >> jon: we are waiting for the

president to emerge from marine one to board air force one for this trip to indiana. we understand as he boarded marine one he made a few comments about what lies ahead, we look to have those to play back for you in a couple of minutes. typically when democrats hear about tax cuts, they start talking about tax cuts for the wealthy. the white house and proponents of this plan seem to be truly emphasizing they seem to be emphasizing this is a middle-class tax cut. our they being honest with us? will that blonde some of the potential criticism? >> removing the tax will work to the benefit of the rich, ultimately and i think that's where you are going to see the democrats focus some of their fire here.

ultimately it is hard to see how you couldn't have bipartisan support for a middle-class and below tax cut. they are expanding that standard deduction, making sure married couples will have a deduction at the lower end of the spectrum. more people will face a zero on the federal income tax, that's a big deal and i think democrats will want to support that. we know that something like 68% of the country supports an overhaul to the tax system. that's not a small number. democrats know that their base supports the taxes and they are going to do it they can to insist they don't give any breaks to the wealthy. >> jon: the president has also been talking about simplification and saying a great number of americans are going to be able to file their tax returns on a postcard if this goes through. to me that seems impossible but it could happen. most americans i would think would get behind that.

>> that will be enormously popular. it would really help republicans after a very tough a year, they haven't been able to walk across a room together. if they could cut people's taxes and simplify that code of so they could do it on a postcard or two, that would help a lot and that would be a huge accomplishment. >> can i say one thing? the debate is going to center around this to some extent. remember this, the president of the united states and his team believe they can get a 3% rate year-over-year, that's where they believe they will see a lot of money coming in, they are going to lower that corporate tax rate to 20%. that's the thing to look out fo for. assess whether or not the economy is growing as much as a president hopes it will. >> jon: as we await the

president, here are some remarks he made just before boarding marine one. >> we have a man who is going to be a great senator, i spoke to him last night. i am very happy with him and i have it to say, luther came a long way way from the time i endorsed him. i know he worked hard and i'm sure things will work out. i just wanted to say on health care, we have the votes for health care. we have one senator that did no not, he can't vote because he is in the hospital. we have two other votes that are coming and we will have them. the problem is we can't have them by friday because the reconciliation ends on friday,

we will have to do it in january or february. i feel we have the votes, i am almost certain we have the vote votes. we cannot display that we have them, some people want to go through a process to make some themselves feel better, that's okay. >> ]inaudible question] >> i will look into it, personally i am not happy about it. i'm going to look at it, i am not happy about it. >> what about mitch mcconnell? is he in

the history of our country. you already know some of the numbers, we are going to give you some of the additional numbers. on health care, we have the votes, we can't do it now because we have somebody in the hospital. we have great respect for that gentleman, he's been a fantastic man. he has to come here and vote. he can't come here and vote because he's in the hospital. we are going to do it in january or february, as you know, we can't go longer than friday. what we're going to do is we will do the health care, we will get a longer process going very importantly, i am also during this period up a couple of months i'm going going to meet with democrats and see if i can

get a health care plan that's even better. i will negotiate with democrats. from the republican standpoint, we have the votes, we will vote in january or february. i am considering an executive order and that will take care of a tremendous number of people in regard to health care and i will probably be signing a very major executive order where people can go out across state lines and by their own health care and that will be probably signed next week, it is being finished now, it's going to cover a lot of territory and a lot of people. >> are you confident mitch mcconnell can get health care across the finish line? >> i think we are there now. if you look and see a statement put out by alaska, you saw that.

you look at the other couple of statements, we are only one off. it may be we can't vote now, you probably didn't hear me. one of our yes votes is in the hospital. i can't take him out of the hospital. i do have confidence in him, ye yes. it's not up to me, it's up to the senate. i will say, they used him in the race and i was very honored by the way i was treated in the race. >> on tax reform, does your plan help the wealthy? >> my plan is for the working people and my plan is for jobs. i don't benefit. very strongly, there is no -- i think there's very little

benefit for people of wealth. if you look at it for farmers -- >> ]inaudible question] >> the point is this. health care, we have it, we have the votes. because of reconciliation we have to wait until january, february or march. in the meantime i will negotiate with democrats to see if we can make a bipartisan bill. i want to do start at 15 so we

got 20. the numbers, 15 was so low we didn't take in the revenue. i wanted 15 so we got 20, 20 is my number, i am not negotiating that number. that's the number i wanted to get to, i wanted to start at 15 to get there. we had to start there because of the complexity of the number. 20 is a perfect number. we have a lot of people and a lot of people who work in the shipping industry and we have a lot of ships out there right now and i will tell you, the governor was very generous yesterday and so was the mayor of san juan, very generous with his statement. i am going there on tuesday as you probably heard it. puerto rico is a very difficult situation.

that is not a question of drying up the water, that place was flattened. that is a really tough situatio situation. >> can you tell us why sudan was removed? and how does the travel ban work in north korea? >> we can add countries very easily and we can take countries away. i want the toughest travel ban you can have. i will see you in indiana. are you all going? >> if you invite us, is there room? >> i know this is something you've been talking about a lot. why doesn't colin kaepernick have his first amendment right?

>> i think the nfl is in a really bad a box. the only thing doing well in the nfl is the pregame. the nfl is in a very bad box. you cannot have people disrespecting our national anthem, our flight, and our country and that's what they are doing. in my opinion, the nfl has to change. >> do you oppose the first amendment? >> not at all, no. we have to respect our national anthem, we have to respect our country and they are not respecting our country. most importantly, the fans agree with me. largely, the fans agree. we have to show total respect for our national anthem, our flags, our country. there are plenty of places, personally when they are

protesting during a football game, i think they can find better places but they cannot do it during the national anthem. i am not happy with it. >> jon: over the roar of the marine one jet engine, the president and a very chatty mood today, talking about everything from the continuing effort to repeal and replace obamacare to the tax plan he is about to try out in indianapolis as well as his feelings about the nfl. more on that now. >> heather: let's talk a little bit more about this with our political panel. as we see the president

disappear right there. let's talk about what he was ending on right there. more on this nfl controversy, the national anthem. he believes people need to respect our anthem and he believes the majority of people agree with him. according to the latest polls i see, that is true. do you think that type of bases what influence the race that just happened in alabama? >> i don't see the correlation between the debate that's going on in the nfl with taking a knee and this a discussion surrounding whether or not it's disrespecting our national anthem and our flag and what happened in alabama. i think overall the issue in alabama with the runoff that just occurred yesterday really was more about a commentary on two things. a challenge for the establishment and the united states senate, i think a

lot of republicans are very disappointed in the fact that mitch mcconnell and his colleagues, the establishment in washington have not been able to deliver on the promises they've made, namely repealing and replacing obamacare. roy moore, the guy that won, beat luther strange and by all accounts this roy moore is truly antiestablishment. >> heather: may be bringing in more folks like him -- the president talked like that in the beginning, saying that yes, they do have the votes for health care. but someone is in the hospital and he said they will vote in january or february, that that will happen. also set on health care he will negotiate with the democrats, that he is considering executive order, one of which will allow people to go across state lines to buy health insurance. what are your thoughts?

>> looking at the possibility of a toolkit of executive orders along the way, the problem is that the affordable care act is crashing and burning for many americans. put the politicians aside for a moment, i am fed up with the republican failure to get something through for a variety of reasons. back back to the aforementionedy moore at win and dissatisfaction with the establishment. when it comes to the health care reform, americans need relief now. the tax package as part of that. american jobs are being undercut, people are making hiring decisions, they can't make other decisions for their families and health care decisions which are made on on a daily basis for some are not giving that access to care because of the failures of the affordable care act, the lack of providers, the tripling in some cases, 300% in arizona in some

areas. there has to be a toolkit put together. >> if i may on that particular issue, there are two areas of health care policy that could be handled, some that need to be handled before september 30th. one of this is the reauthorization for children's health care program, prior to the situation with graham cassidy and trying to push that repeal and replace effort through, the other is the cost sharing reduction, to enable the government to be able to inject cash essentially into the marketplace -- >> heather: that is the problem right there. with a lot of the conservative congressman. >> there have been discussion surrounding that issue, that is something -- >> bipartisan is a farce. let's be really honest about this.

>> heather: they have been trying since july. >> if there was a bipartisan effort we would've seen something presented by the democrats and we have not seen that. the result of this is we are where we are, the affordable care act stays the law of the land on friday so when septembee don't have solutions. the idea of taxing the very americans who can afford the increased premiums and outrageous deductibles to subsidize others is ridiculous. and economically unsound. >> heather: so many other things on capitol hill are not working which is in part why roy moore won the race in alabama. what does that mean if anything for other elections moving forward?

>> go ahead, that's fine. >> heather: quickly. >> i don't think it means much, you've got a primary race between two republican candidates in a red state, i don't think it's much of an indicator in either direction. >> i agree with that, i think what we've seen in a number of special elections with the exception of what happened in the state senate race in florid florida, i don't necessarily think these special elections have any indication on the 2018 outcome as far as democrats picking up seats. i think it would behoove democrats to work together with republicans in order to show they are willing to govern. >> i'm not hopeful, hope is not a good strategy. >> thank you so much for joining us. >> jon: some new developments in the nuclear standoff with north korea, what president trump is sending his

top diplomats as he calls for a united international front. >> all nations much act now to ensured the nation's complete denuclearization.

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right now all lanes are closed. traffic at a standstill as you can see in these aerial picture pictures. all of i-80 is shut down after police pursue a homicide suspect, we don't know anything more about why they have shut down the road, whether the suspect is barricaded somewhere or perhaps surrounded by police, we don't know. i-80, a lot of people moving nowhere there right now. we'll keep an eye on it. >> heather: construction began yesterday on some prototypes for president trump's border wall, eight different designs will be created. >> we are going to give you the first live look, the first time

anybody's a bennett allow in. you will see the original wall is outdated, dilapidated in many cases. you can see a couple of guys peeking over the wall right now watching construction take place in tijuana. that's the original wall, the second line of defense is where the new walls will go inside san diego, the wall ends right where i am standing about a mile up the road. there is actually eight different sites, six different companies doing this. the area is about the society's of a small backyard. we know four of these concepts will be cement, four will be other types of material. they have 30 days to get these put up, border patrol will then come out and inspect, pick one, maybe pick all eight. depends on what they decide to choose and also taking into account new technology, topography and all the other issues as well. the evaluation process will

begin in 30 days all right here, you will basically see a small piece of each one before the next step which is to start the border wall, roughly 1300 miles without any sort of barrier, these will not only start going up but also replacing some of the older wall that exists like here in san diego. >> heather: of a campaign promise, a lot of people waiting for that to start. thank you very much. >> jon: secretary of state rex tillerson heads to beijing today amidst the exploiting standoff with north korea. the white house denies the regime's assertion that the u.s. has proclaimed war on north korea but president trump

not backing down on his rhetoric sang the market forces end. we are totally prepared for the second option, not a preferred option. if we take that option it will be devastating for north korea. that's called the military option. if we have to take it, we will. >> jon: the north has said we have declared war on them. i'm curious as to your take as to why they are taking that position. >> that this has been a whirlwind of a week. i think with the position shows as it's just words. the united states president made statements that a military option is not only on the table but potentially imminent to other countries i can seem a great threat. other countries have taken significant action that supports president trump's position on u.s. bombers, the farthest north they've ever flown in the 21st century. >> jon: the north has said they now have a right in their view to shoot down any bombers

or other united states air asset even in international airspace. if they were to do that, it would bring on the worst kind of retaliation, would it not? >> i think this is one of the primary concerns about escalating. it opens up the possibility of miscalculation. the united states making such strong statements vindicates kim jong un's position that he needs them to ensure his survival. maybe he's wrong, maybe pursuit of a nuclear weapon will be his downfall. such a miss calculation could be bad for north korea but also the united states and south korea. >> jon: multiple administrations have tried to deal with north korea, there hasn't really been in my memory a credible military threat put out there on the table and we've seen north korea tear up nuclear agreements and continue to thumb its nose at the international community.

>> currently this is the most credible threat the united states has probably put forth to north korea in quite some time. at least since the clinton era. however i think the strategy that such a credible threat, that is a big miscalculation. worst-case scenario, we find ourselves at war. 180,000 american citizens live in korea and best-case scenario, it makes it even harder because basically the united states is losing its credibility in upholding these agreements. >> jon: what about the new sanctions that have been voted in at the u.n., how confident are you that those might finally force came to tow the line.

>> i think it's very important, the bottom line is this point kim jong un feels like these weapons to maintain his power and ensure his survival. no amount of economic suffering is going to be able to outweigh that. >> heather: the feds making arrests alleging widespread corruption team in the ncaa. ten people facing federal charges and one university has just placed its legendary basketball coach on administrative leave. more fallout coming. plus -- a woman forcibly removed from a flight, why police had to drag her away. if you have medicare

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to learn more. go long. >> jon: some crazy video from a southwest flight bound for los angeles. of the trouble started when a female passenger reportedly told the crew she was deathly allergic to a pair of dogs on board and demanded they be taken off the plane. officials asked her for a medical certificate saying she was safe to fly. when she couldn't provide them with that, they asked her to leave. then this happened. >> he's got my leg. >> don't touch me. >> walk. >> what are you doing?

what are you doing? >> jon: some fellow passengers urged her to cooperate. southwest is publicly apologizing to the customer, we are not sure if she apologized. louisville was implicated in a federal investigation into bribery and corruption in college basketball. the justice department arrested four ncaa basketball coaches yesterday. they are among ten people facing federal criminal charges, including a top executive at adidas. here is the acting general of new york. >> coaches at some of the

nation's top programs soliciting and accepting cash bribes. managers and financial advisors circling prospects like coyotes. employees of the world's largest sportswear company secretly funneling cash to families of high school recruits. >> heather: let's bring in our legal panel to talk about it. i'm going to start with you, they were from auburn university, oklahoma state university, and university of southern california. how louisville comes into play with this, federal prosecutors say at least three top high school recruits were promised payment. as much as $150,000 using money

supplied by adidas, the two schools were not named about the details that were given implicate miami and louisville. there have been scandals before but what about this? >> we are talking money here. we are talking greedy. college sports news for billion dollar industry. there is no way to take agreed out of this game. we've seen greed permeate through politicians, religious figures, lawyers, doctors. when there is money there is no legislation. by paying college football players, i can tell you, if i was paid -- >> heather: it's so disappointing. we have all of this going on right now with the nfl,

professional athletes. a lot of people have been turning to college sports, you like to think these are clean and haven't gotten to the point where they can be corrupt. apparently that's not the case. >> this kind of thing was going on for a long time. too many people were involved, too many moving pieces. when rick pitino became a pro set providence college, i was in school. it's heartbreaking, but nevertheless it's not fair to do what they were doing to the players, to the fans, and to the league itself. >> heather: i didn't want to ask that question, at what point does responsibility stop? what if the head coach is not specifically aware of the

details of what's going on? as he held accountable? >> it's hard not to be aware of the particular details. the industry is flawed in terms of the recruitment process. there is a lot of people looking for the college athletes, unless you are turning a blind eye, it's impossible not to know what's happening. >> heather: the investigation is ongoing, i went to a huge football school -- huge basketball school, we are still working on the football. in terms of this continuing this investigation going on, you expect more? >> this is the tip of an iceberg here. there are so many people who are going to run to cooperating with the feds. i think you can expect this is just the beginning and it is

going to be widespread with multiple institutions and multiple higher-level people. i think the administrators are going to have a very difficult time explaining that hear no evil, speak no evil and that is what the feds are looking at right now. >> heather: thank you so much for joining us. >> jon: more than a month after hurricane harvey made landfall in texas, people are still struggling with huge piles of debris lining the streets of many neighborhoods around houston. why public officials are worried, live reports coming up.

>> jon: right now a race to clean up mounds of debris left behind after hurricane harvey ravaged houston. public officials say giant piles of ruined furniture are a health

hazard and a breeding ground mosquitoes. >> i can tell you it doesn't smell too great either, weeks after this storm hits, still these piles of debris all over the place when you drive around. they are just waiting to be hauled off to either a landfill or to one of the specially designated waste management sites set up by the state. there is not only this huge push to get it all cleared out fast, groups like the epa also want it done safely, trying to ensure that hazardous materials like household chemicals, gasoline, paint are disposed of properly. patience is wearing thin in some neighborhoods, residents say the waiting is agony. however, help is on the way. other texas cities are pitching in, austin and san antonio have sent some of their waste management trucks and employees, dallas will send workers an

additional heavy equipment to help. independent contractors are also hitting the street because there is no shortage of work to be done. >> the neighbor said, how to move my trash. we are just getting neighbor after neighbor. >> houston public officials have said this cleanup could take possibly anywhere from 3-6 months. a long road ahead. >> jon: where they put it all? that is part of the problem. thank you. >> heather: president trump traveling to indiana, the home state of his vice president. he will pitch his plan to overhaul the nation's tax code. we will take you there live once that event gets underway.

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>> jon: just during the

commercial break, a swift water rescue in oklahoma city. you can see this suv wound up in a very strange place. we believe the woman behind the wheel was the only person in the car. they're having torrential rains in oklahoma city today. whether that has something to do with this situation, we don't know. these are now live pictures as they get her out. about 6 or 8 inches of water pushing against your car's wheels. it can float your vehicle and take you right off the road. something like that may have happened here. this looks like some kind of spillway. i'm not sure what. >> heather: it's a spill way that connects two different lakes. that's one of the lakes there where that tiny guardrail is just managing to hold that huge vehicle. definitely a dangerous situation. i have done some swift water rescue training myself.

it's so unpredictable and dangerous. incredibly. >> jon: she is safe. that's the good news. >> heather: we'll find out what else happened and let you know. thanks for joining us. >> jon: "america's news hq" starts now. >> sandra: president trump breaking news on a number of stories as he departed for indiana. gop will unveil details of their tax reform detail minutes from now. president trump speaking with reporters before getting on air force one. he talked, among other things, about his desire to see another attempt at repealing obamacare early next year. listen. >> on healthcare, we have the votes for healthcare. we have one senator that's in the hospital. he can't vote because he's in the hospital.