>> shepard: its noon on the west coast. 3:00 in washington where today house republicans finally reveal the details of their tax plan. now we know the all-important income bracket in will help determine how much of your paycheck goes to our government. we'll also show you all the numbers and explain what they mean and how this new tax bill would affect everything from corporate tax rates to your mortgage interest deduction. >> this plan is for the middle class families in this country that deserve a break. simple they say they want to help the middle class. tax cuts for the rich won't help the miss class? and prosecutors say the accused new york city mass murderer started planning his attack a year ago. what else they revealed in court

documents. and a look at the victims moments a mad man crashed down a bike path. the former trump campaign manager paul manafort back in court this afternoon after special counsel robert mueller indicted him. while on capitol hill, the house intelligence committee asks questions of the former trump campaign adviser, carter paige. we'll see how that went. let's get to it. the news is breaking indeed. a live look at the white house. the rose garden. the president is set to announce his nominee to run the federal reserve. some analysts call that the most important job in the country. the fed controls interest rates, so it affects everything from bank accounts to credit cards and your mortgage. it also has a very big influence on the stock market. another major story that will affect your wallet, the gop tax plan. house republicans jockeyed late into the night and now have

released details of the proposal which calls for the biggest changes to the tax code in 30 years. we finally know what income levels fall under each tax bracket. listen up. here it is. the proposal includes a 0% tax bracket for individuals that make less than 20,000 a year. same goes for married couples that make less than $24,000. the next bracket is 12%. it's for individuals that make up to $45,000 and couples that make up to $90,000. after that, 25% up to $200,000 for individuals, $260,000 for couples. next is 35%. up to $500,000 for individuals. up to a million for couples. anything higher than those levels falls under the top tax rate of $39.6% as it does now. $12,000 for individuals, $24,000 for married couples. republican leaders say there

will be no change to 401(k) retirement plans. the plan slashes the corporate tax rate from 35 to 20%. on obamacare, it does not repeal the individual mandate. the alternative minimum tax, gone. the deduction for state and local taxes, gone. the deduction for property taxes, limited to $10,000. as i said, no change in 401(k)s. the bill does allow homeowners to keep the mortgage deduction. but it caps that deduction for new mortgages at $500,000. that news sent home builders stocks plummeting today. home depot, the biggest loser on the board this afternoon. as i noted, the plan would also limit deductions for state and local taxes. this could be a major sticking point in passing the bill. especially in big high tax cities and states. some republicans have already come out against this. overall the, this tax plan should it go through like this, which it will not, would add $1.5 trillion to the nation's

dealt the next decades. president trump says most americans he be able to file their taxes on a postcapostcard. >> the plan to cut taxes, the biggest tax cut in our history. there's nothing more important to our economy. you can see what is happening with our economy and how well it's doing. this is going to bring it to the next level. >> shepard: nancy pelosi disagrees. he says the republican tax plan will hurt the middle classes. >> it raises taxes on the middle class. millions of middle class families across the country. borrows trillions from the future from our children and grandchildren's future to give tax cuts to the wealthiest and encourages corporations to ship jobs overseas and the budget ransacks medicare. >> shepard: the bill will change. that starts next week. lobbyists and industry group will pounce and spend millions

on both sides for and against. objections are many and the time is very tight. the deadline for this is the end of the year. we'll have more ahead on this. first, john roberts is live in the rose garden as we await president trump. hello, john. >> good afternoon, shep. the president should be out here in the next few minutes or so. this was scheduled for 3:00. it's about 4 minutes after now. typically they run a few minutes late. the president clearly happy with what is another mile post in terms of his tax reform plan. like the old football adage, three yards and a cloud of dust to get across the goal line. he had the vote in the house. now he has the plan in the oval office. the president announcing a new jobs program. an old company from the united states that moved to singapore moving back to the united states. in the cabinet room, meeting the ways and means committee. the president said he's very happy in terms of getting most but not all of what he wanted.

he wanted full elimination of the state and local tax deduction. he got it up to $10,000. otherwise, i think he is looking at what happened in the house today in terms of the plan that came out and said this is something that i think i can work with. listen to what the president said. >> we're working to give the american people a giant tax cut for christmas. we're giving them a big beautiful christmas present in the form of a tremendous tax cut. it will be the biggest cut in the history of our country. it will also be tax reform and create jobs. >> not likely this will happen in time for christmas. the president has said and kevin brady agreed, we'll try when he was there in the cabinet room. the president wants this through the house by thanksgiving. while the president is in asia and leaves for that trip tomorrow, his cabinet members will be crisscrossing the country to sell the plan and get it across the goal line in the house. the senate will take a longer

period of time. there's some talk about making it retroactive for 2017. i don't know how far that talk will go. shep? >> shepard: the federal reserve, a big job. there's a decision today. >> jerome powell will be the new fed chairman. he's in the mold of janet yellen whom the president was critical of but after getting to know her in meetings, he said he really liked her. the white house wanted its own stamp on the fed chair spot. so jerome powell, who is expected to maintain the slow and steady pace of raising interest rates is going to be the next fed chairman. we should point out he will be the first fed chairman that doesn't have a ph.d. in economics. he's coming out now. let's listen to them. >> shepard: thanks, john. here we go.

>> thank you very much. i'm pleased to welcome members of the cabinet, members of congress and distinguished guests to the white house rose garden this afternoon. also, i want to welcome the chairman of the senate banking committee who has done an incredible job. mike, where are you? please, mike. great job. appreciate it. [applause] as president, few decisions more important than nominating leaders of integrity and good judgment to hold trusted positions in public office. few of those trusted positions are more important than the chairman of the federal reserve. accordingly, it's my pleasure and my honor to announce my nomination of jerome powell to be the next chairman of the federal reserve. congratulations. [applause]

jay is joined by his wife, lissa and his two sisters, monica and elizabeth. and i say congratulations to you all. please, take the bow. you deserve it. [applause] thank you for being here. today is another important milestone on the path to restoring economic opportunity for the american people. in just a short time, we have already made incredible strides. unemployment is at its lowest level in more than 16 years. you know that very well. you know that very well. you're happy about it. we've now had back-to-back quarters of 3% growth. a major accomplishment and we're doing better and better every single week. but if we are to sustain all of this tremendous economic progress, our economy requires

sound monetary policy and prudent oversight of our banking system. that is why we need strong sound and steady leadership at the united states federal reserve. i have nominated jay to be our next federal chairman. so important because he will provide exactly that type of leadership. he's strong, he's committed, he's smart. and if he is confirmed by the senate, jay will put his considerable talents and experience to work leading our nation's independent central bank, which has the critical responsibility to set monetary policy and monitor our banking system as a whole. there's a few more important positions than this, believe me, in our government. jay has served on the federal reserve board of governors since

2012. during his five years at the fed, jay has earned an admiration for his hard work, expertise and judgment. he's proven to be a consensus builder for the sound monetary and financial policy that he so strongly believes in. based on his record, i am confident that jay has the wisdom and leadership to guide our economy through any challenges that our great economy may face. jay has earned the respect of members of congress, straight across party lines. for each of his appointments to the fed, the senate confirmed jay with strong support from members of both parties. that's unusual. i hope the senate will swiftly

confirm him once again. jay will also bring to the fed a unique background of prior government service and business experience. he previously served as undersecretary at the department of treasury in the administration of president george h.w. bush. just like william martin, the longest serving chairman in federal reserve history, jay will bring extensive private sector experience and real-world perspective to our government. as a result, he understands what it takes for ours economy to grow. just as importantly, he understands what truly drives american success, the innovation, hard work and dreams of the american people. i also want to thank the current chair, fed chair, janet yellen,

a wonderful woman who has done a terrific job. we have been working together for ten months. she is absolutely a spectacular person. janet, thank you very much. we appreciate it. the past four years, she has served with dedication and devotion and we are grateful for her total commitment to public service. the federal reserve is one of the most important institutions in our government. it is respected all around the world and is crucial to our economic prosperity. i am confident that with jay as a wise steward of the federal reserve, it will have the leadership it needs in the years to come. thank you and god bless you all. now i would like to invite jay to say a few words. thank you very much. thank you. [applause]

>> thank you very much, mr. president, for the faith that you have shown in me through this nomination. i'm honored and humbled by this opportunity to serve our great country. if i am confirmed by the senate, i will do everything within my power to achieve our congressionally-assigned goals of stable prices and maximum employment. i want to thank my wife, alissa for her support and white counsel. without here, i wouldn't be standing here. we're thinking of our three children. my five siblings and i are thinking today of our parents who gave us so many gifts including most of all a loving home. in the years since the global financial crisis, our economy has made substantial progress towards full recovery. we're close to full employment and inflation has gradually moved up.

our financial system is without doubt far stronger and more resilient than it was before the crisis. our banks have much higher capital and better at managing risks. while post crisis improvements in regulation and supervision have helped,ly continue to work with my colleagues to ensure the federal reserve is vigilant and prepared to respond to changes in markets and evolving risks. finally, to echo the president,'s had a great privilege of serving under bernanke and chairman yellen that moved monetary policy towards greater transparency and predictability. each of them has the highest ideals of public service, inflinching commitment to fulfilling our mandate. we understand that monetary policy decisions matter for american families and communities. i strongly share that sense of mission and i'm committed to

making decisions with objectivity based on the best available evidence and the longstanding tradition of monetary policy and independence. mr. president, thanks for this opportunity to serve the american people. thank you. >> thank you, jay. [applause] >> thank you, everybody. thank you. >> shepard: lots of questions there as is common. no answers. sometimes there are, sometimes there aren't. john roberts is usually good for a few. he's live in the rose garden. john, this matters for our money, all of our money. >> it does. i mean, the clear inflection

point that showed us all how much it matters for the money is in 2008 when the financial crisis hit. had it not been for a steady and knowledgeable chairman, our economy might have gone in the tank. jerome powell said since 2008-09, the economy is much more on a solid footing. the banks have taken on less risk or been able to manage the risk better. there's more liquidity that the banks have, cash on hand, that sort of thing. so he wants to continue along the path that has been set for the last few years, which is to really go slow and steady when it comes to making changes. there were a couple of potential nominees the president was looking at that would have increased interest rates substantially. that would have roiled the markets. the president likes the stock market around the 24,000 mark and wants to keep that going. that's an instant gratification

for the president to say look how well our stock market is doing at every opportunity. he likes to say how many trillions have been added to the value of the economy in terms of the stock market. so he wants to see that continue on a separate path. he believes if tax reform gets passed, that could soar pass 25,000. the last thing he wants is somebody at the levers of our financial areas, you know, jacking up interest rates and, you know, having some sort of negative effect on the stock market. that's one of the reasons he went with powell. very much in the mold of janet yellen. he believes that powell will get confirmed and he alluded to this very easily. when he was first confirmed at the board of governors in 2012 and again in 2014, he had substantial support from the other side of the aisle with the democratic party. this seems to be a safe pick. conservatives might have preferred john taylor, the economist from stanford. i think he's got pretty broad

base of support for this pick, shep. he will likely get this through the senate very quickly. >> john roberts in the rose garden. thank you again. >> thank you. >> shepard: much more now on the republican tax plan. lots to get through and some lawmakers on both sides say they have concerns. our chief congressional correspondent, mike emanuel is on capitol hill. hearing from them all. hello, mike. >> hi, shep. part of the pitch is the typical american family will get a tax break up to $1,200. part of the pitch is this will make tax time, april 15th, a lot easier. >> for 90% of americans, they will fill out their taxes on a postcard. that's what simplicity means. being able to do this. >> top gop lawmakers say this won't be easy, but they're determined to deliver on this one. >> the political will among the members here in the house has shown by the members of the ways and means committee is iron clad to get this done.

>> they are also well-aware there's great expectations among voters. shep? >> i said early they are won't be the tax bill. it will not. changes will happen. leaders say that. there's no question about it. it's not a debate, it's not an opinion. it's going to change. the question is how is it going to change. a lot of leaders on the republican side from high tax cities around the country that are upset about this tax deduction thing. >> no question about it. so one concession that was made was allowing to write off some of the local property taxes, up to $10,000. but to scrap other local and state tax deductions. new jersey congressman leonard lance, a republican saying "there is much to like in this legislation, but the proposed cap on deductibility of state and local taxes makes the bill unacceptable at this time." a new york republican says she's more of a yes than a no at this point. >> there's some good things. i think we're still fighting the fight, this is a proposal. it has to go to the senate.

the senate has to do what they do with it. god knows what they'll do. then it comes back to us on reconciliation. that's where we are. >> the senate is working on a package of its own. this is just the beginning, shep. >> shepard: thanks, mike. what would this mean for your wallet? specifics to your family and your income group. gerri willis has that in detail neck from the fox news deck. great to have you in. when you say you need a heart transplant... that's a whole different ballgame. i was in shock. i am very proud of the development of drugs that can prevent the rejection and prevent the recurrence of the original disease. i never felt i was going to die. we know so much about transplantation. and we're living longer. you cannot help but be inspired by the opportunities that a transplant would offer. my donor's mom says "you were meant to carry his story".

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>> shepard: continuing breaking news. we have a budget from the house republicans. much more on the tax plan. gerri willis is here with a look at that. you have some examples. >> yeah. we wanted to drill down the winners and losers. winners first. a family of four making $59,000.

they will make $1,082 back. they have a tax deduction and a family flexibility credit. so after all this is over, they pay $400 instead of $1,582. >> shepard: okay. that sounds good. >> how about a single parent? >> shepard: how about that. >> making $30,000. they get a big fat refund of $1,700 more. it's because of the standard deduction that we've talked about. >> shepard: that's if you're single and zero. >> if you're single and zero. >> shepard: so if you're single, your refund goes up to $1,000. >> if you're single and have two kids. she's getting -- she or he. sometimes it's a fellow. >> shepard: never knows. >> and making $30,000. >> shepard: sometimes it's gender neutral. it's america. >> and them. >> shepard: you're right. >> so here's the thing. ways and means told myself is a

winner. somebody's docks is getting gored here. let's take a look at who might be paying more. high incomers. if you make a lot, if you love in a blue state and you're paying a high state and local taxes on income, okay? or property -- >> shepard: go on. property taxes, to. >> you'll get killed here. these are the people in the cross hairs. >> shepard: which, you know, he had said rich people have to pay their fair share. this is a middle income tax cut. on the main, the democrats are saying it isn't. but if you look at this thing, if you're a w-2 earner and live in a big state with big taxes, your taxes are going way up. that's a fact. it's blue state people that pay more. >> only one exception to this. if you're a sole proprietor. it could go from 39% to 25%. they're trying to lower rates on small business operators, sole

proprietors. >> shepard: they've done a really good job saving what isn't necessarily true about the estate tax. because largely the estate tax changes affects the very wealthy. with a hand -- there's 360 million people in america. two hands full of people that are not rich will be helped by this estate tax change. otherwise, this is a help to rich people. so big rich families can keep their big rich money in their

lobbying and politics. these kinds of bills, there's not been a major rewrite since 1986. so the issue with the tax code, just like healthcare but probably more so, it touches every single industry, every company wants to keep their deductions, their things that could mean a bunch to the bottom line. you'll see tens of millions spend in the next several months. >> shepard: anna, great to see you. >> thank you. >> shepard: paul manafort back

in court after paul mueller indicted him. one of trump's former campaign advisers in front of lawmakers today. what we know about that coming up. e, and i had to make a claim and all that? is that whole thing still dragging on? no, i took some pics with the app and... filed a claim, but... you know how they send you money to cover repairs and... they took forever to pay you, right? no, i got paid right away, but... at the very end of it all, my agent... wouldn't even call you back, right? no, she called to see if i was happy. but if i wasn't happy with my claim experience for any reason, they'd give me my money back, no questions asked. can you believe that? no. the claim satisfaction guarantee, only from allstate. switching to allstate is worth it. but he's got work to do. with a sore back. so he took aleve this morning. if he'd taken tylenol, he'd be stopping for more pills right now. only aleve has the strength to stop tough pain for up to 12 hours with just one pill.

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there's been speculation he might have been wearing a wire. we don't know that. no proof of that. a lot of chatter about that. is there anybody else like that that got picked up months ago that we don't know about? that's what we're looking for. >> shepard: we'll know soon enough. the world will know. tom, great to see you. >> likewise. >> shepard: more breaking news. fox news can confirmed the

republican congressman lamar smith from texas is retiring. he's a trump supporter. in a direct that went ten points for trump in the positive. the thing is he's been termed out. no longer eligible for committee chairmanships. he and another republican have been out the last few weeks. the financial services committee in the house, the chairman there, also out. two texans, republicans, gone. we're learning more heart breaking details today about some of the victims of tuesday's terror attack here in new york city. plus, video showing this group of friends right before it happened and what we know about the suspect coming un. (avo) when you have type 2 diabetes, you manage your a1c,

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so, i traded in my lederhosen for a kilt. ancestry has many paths to discovering your story. get started for free at ancestry.com. >> shepard: we're getting a look at some of the victims of tuesday's terror attack in new york. moments before it happened. these men from argentina were celebrating the 30th anniversary of their high school graduation. a newspaper reports a survivor

of the attack shot this video of the group on the bike path. five of them were among the eight people killed when the truck plowed into them. the friends were reportedly carrying souvenirs and gifts for their families back home. prosecutors have filed terrorism charges against the suspect in the mass murder. eric shawn is live in lower manhattan with more. eric? >> hello, shard. they tied from blunt force trauma from the head and torso and lower extremities. the manner of death, homicide. we're learning more about saipov's plan and what he intended to do. authorities say that he had planned this the last two months. on cell phones they found at least 90 isis-related videos and nearly 4,000 photos of isis atrocities. he planned this for halloween night because he wanted to hit more people on the holiday and was hoping to go over and kill people on the brooklyn bridge.

on the pickup he rents, they found knives, a stun gun and isis literature. he rented a truck to practice it. a neighbor took this picture in patterson, new jersey. he realized the home depot pickup truck in the background. it was taken on october 22, the day authorities say saipov rented to it practice. the neighbor said he saw two other bearded men with saipov driving the vehicle, but so far authorities say saipov is the only suspect. meanwhile, here on the west side where this horrible attack occurred, concrete authorities are playing barriers so cars cannot access the bike path. >> shepard: there's controversy over whether president trump would designate him as an enemy combatant. >> yeah, he did mention that yesterday, the president and the

white house indicated that he could be an enemy combatant. the president was considering whether to send him to gitmo. today he reversed that and tweets this morning saying it's better to try him in the federal court system, that that would go faster and he should be tried at the site, in other words, in new york city, where this horrible attack occurred. some are now criticizing that. senator lindsey graham saying it would be a huge mistake not to try him as an enemy combatant. graham saying he should be shipped off to gitmo. >> they're playing like president obama did. it's clear to me that he says he's a terrorist, he committed a terrorist act, he showed sympathy for terrorist and therefore you're a terrorist. who more do you have to do to become an enemy combatant under our law? >> court papers say that saipov wanted to hang the isis flag in his hospital room, that he's proud of what he did. he's next in court on november

15. >> shepard: eric shawn downtown. thank you. president trump repeating his call to end the diversity visa program. the feds say it was under that program that the suspect in the new york city attacks came legally to the united states from uzbekistan. after he came here, that's when he radicalized. the president says the program is a threat to national security. >> it's a disaster for our country. this program grants visas not on merit but because applicants are randomly selected in an annual lottery. it's a very unsafe program for our country and we're not going to allow it to happen. >> shepard: they're actually vetted after the lottery and less than 1% of those that apply actually get in. the program awards visas to people from countries that tend to have limited or low immigration rates to the united states. the president called the program a chuck schumer beauty. president bush 41 signed it into

law. senator schumer criticized the president of politicizing the attack after it happened. the former head of the dnc says she has proof positive that hillary clinton's campaign rigged the primary process to stack the deck against bernie sanders. stunning, right? the details of that are next. the next era belongs to those who help ensure the next energy to power our dreams, will be american energy. ( ♪ ) i'm 65 and healthy. i'm not at risk. even healthy adults 65 and older are at increased risk

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>> shepard: the former head of the democratic national committee donna brazile claims she has proof that hillary clinton's campaign rigged the democratic nomination. the details from our trace gallagher who is live this afternoon. trace? >> hi, shep. when donna brazile said she took the helm of the dnc, she promised bernie sanders that she would find out in the primary was rigged. when she got the proof, brazil said it broke her heart. she said president obama left the dnc $24 million in debt. the clinton campaign cleared away most of the debt but put the dnc on an allowance. as bernie sanders expected, instead of being neutral, the dnc was in charge of hillary's

campaign. brazile said bernie sanders asked what were his chances. she didn't say anything. meantime, the current dnc chair acknowledges that clinton was the only candidate that raised money for the party during the campaign, but that the party's official policy is to not take sides during the primaries, which apparently according to brazile it did. shep? >> shepard: trace, thanks. debbie wasserman schultz says it was an honor to serve in front of the dnc. she said with president trump in office, they have to stay focused. and sam adams coming out with a pricy new beer. that's next.

how much money do you think you'll need in retirement? then we found out how many years that money would last them. how long do you think we'll keep -- oooooohhh! you stopped! you're gonna leave me back here at year 9? how did this happen? it turned out, a lot of people fell short, of even the average length of retirement. we have to think about not when we expect to live to, but when we could live to. let's plan for income that lasts all our years in retirement. prudential. bring your challenges.

>> shepard: if you have a couple hundred bucks to drop on one bottle of beer, here's an option. sam adams is releasing its tenth version of utopias. it described itself as an extreme barrel of beer. the price of one bottle is two benjamins. the alcohol content, 28%. more than five times the regular brew. because of that, utopia is illegal in 12 states. if you can find it, cheers. on this days in 1986, a school teacher from norway won her eighth new york city marathon tying the record for the most marathon wins like ever. and two years later, greta pulled into the record books by herself and won it a ninth time. this weekend, more than 50,000 people are set to run in the new

york city marathon after a woman raced her way to the history books 31 years ago today. should news break out, we'll think about it. neil cavuto is coming up next. hope you have a great afternoon. >> neil: this is our chance to make sure that generations to come don't just get by, they get ahead in this country. >> a tax bill designed to squander the middle class. >> you'll see tens of thousands of high-paying jobs. >> deficit exploding, going to enrich millionaires. >> delivering more jobs and bigger paychecks. >> tax cuts for the wealthy nest the country. >> it's the biggest cut in the history of our country. it's also tax reform and will create jobs. >> neil: all right. well, pick your side. the tax cut battle is on. welcome. i'm neil cavuto, this is your