in the tax cut u very happy about the progress made there last night. a big legislative victory for him. it's not signed and sealed yet, has to be reconciled with the house measure which has some differences but not as many as you would think. again, we are going to be going there. when he arrives there, the president on home turf in midtown manhattan. that's where we are. that's why we are looking forward to traffic after this. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock. there's nothing more important than your health.

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>> michael flynn promised full cooperation to the mueller team and is prepare today testify that as candidate donald trump directed him to make contact with the russians. yes! [cheers and applause] neil: leave ago side, impeachment proceedings begin, that's fine. fact of the matter is it wasn't quite as it was presented initially with abc report making you think that there were secret conversations

going on with the russians prior to the election, abc later put out a correction to that stating and i quote, flynn prepare today testify to president elect directed to make contact with russians during transition to fight syria. that's a very big difference. i only say that because it's after donald trump has been elected president of the united states. again, it isn't so sinister where you are talking about possible collusion to get him elected president trump. it's a big difference and the joke could be on jay, sign that we have -- watergate. we might very well have something like that but we are certainly a long way from now. you know our policy here and we go through this, everyone calm down, try to tick off both sides, i think we have done that very well, here is a goo illustrates it every day charlie

gasparino on all of that and joining us to take measure of this. bottom line, abc sort of jumped the gun and a lot of people jumped the gun based on what abc was reporting. it's a big difference, is it not? >> oh, yeah, that tape was good, baher was so tacky. neil: rooting for a constitutional crisis. you can remember how the markets erupted over the possibility of bill clinton getting kicked out of office. they were all about the green and maintaining it. you could see how this affected the markets when we got news of this -- news on general flynn that he might be testifying against the president of the united states, markets tanked and only the tax cut talks rebounded them? charlie: on your show and your fox business show, i was

skeptical of the notion that this was existential for the president, just the way the news came out and obviously it's obviously not immediately existential but still not a great thing. i cover a lot of white-collar crime. they start wide, they go in, they pick off people that are close to the intended target and obviously the intended target is the president here whether it's obstruction of justice or something else, and when you do that you get the people that you pick off to increasingly rat out others close -- closer and closer to the target. when a lot of people say now the sort of immediate targets, it would be jared kushner, senior adviser and son-in-law to the president, maybe don, jr. who was played a significant role in the campaign, obviously there were some connections with russians during the campaign, some of them were pretty nebulous as far as i'm concerned. the question really becomes if you start getting close to the

president, what happens with the president? you know, this is a very volatile guy. can he withstand this increasing pressure? i think that's the bigger question. what impact does that increasing pressure have on the markets? i really believe when you have tax cut, corporate tax rate going down to 20%, you know, investors will say, okay, it's not great to have this type of crisis in the white house but guess what, corporations are immediately going to be buying back stock and bottom line, companies are going to do better, less regulation, and guess what, if the worst thing happens that trump was thrown out of office, you would get mike pence as president. i mean telling you investors think that way, that's not a bad way to think about this. you know, and i think these markets -- i always say to you, neil, stock investors are in the short-term really dumb, they trade-off, they trade off the headline. a lot of them are not people anymore, literally robots and

algorithms that are to trade headlines. neil: never overreact up or down. the first thing that we telegraphed at fox business when it came out, it gets me nervous when you have a double or triple source, someone confirming initial report. no one can deny that general was going to plea guilty for lying for the fbi, big leap that he would serve up the president or for that matter conversations that ultimately occurred after donald trump was elected, that was not the case in the initial reporting and we properly questioned it as did you. thank you very much. >> any time, pal. neil: charlie gasparino. a frequent visitor in fancy restaurant, social setting, party setting in new york and a fundraiser setting, the president of the united states will be going to venue and might speak about it. the motorcade there.

if he comes out and adders tax cuts, we are there as well. stay with us. you are watching the cost of freedom. four weeks without the car. okay, yup. good night. with accident forgiveness your rates won't go up just because of an accident. switching to allstate is worth it.

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neil: san francisco says sanctuary policy had nothing to do with it, you say? >> sanctuary city policies had everything to do, they released threat that was here here illegally rather than over to ice so we can deport him. neil: uproar continues right now over josé ines garcía zarate illegal alien who killed a young woman, of course, a couple years back kate steinle. he says that was not deliberately, the gun went off u whether or not it would not have happened if he had not been in the country illegally and the country is trying to cut down on these sort of things, they detain him, arrest, do something to prevent him from being

shipped back to méxico. so there's a bit of a legal dispute going on, the sheriff of vista county, massachusetts, what do you think to go ahead and apprehend him, keeping him on a variety of other charges, but definitely not ship him back. >> i think it's absolutely the right decision and that's why we need to pass kate's law in washington because what's happening is we have seen it in this case, this individual has come back five times. he had been deported and came back again and took the life of kate steinle, so that is an evidence of why we need to do this. i don't know what it is. the people need to get a message, if you try to come back to the country, there is going to be a consequence, he obviously didn't feel there was and came back five different times. neil: to your point, happened repeatedly. the problems of sanctuary cities in san francisco that don't

bother looking at criminal past and the reason they do and know it, they don't do anything about it. did he overstate the thought? what's your thought? >> he absolutely did not overstate the case. that's exactly the problem. we have elected officials, neil, in this country defying their oath, obstructing law enforcement's ability to have the maximum amount of opportunity to keep people out of the community when they are a threat and under these -- these decisions by elected officials for political reasons, not for the interest of the people they were elected to serve, but for their own personal interest, they are passing these laws to try to allow these people to get cover which ultimately ends up causing the kinds of things that thousands of lost of life that so many people experienced at the hands of illegal aliens into our country. neil: the president seized on these developments and got off charges of murder, we need the

build wall, that might or may not be the case, for all sanctuary cities and even sanctuary states as california is quickly becoming, it's almost too late for that, isn't it? >> well, looks it's not too late for any of this, we have to get moving, we need to pass the bill, which would give law enforcement full authority that ice agents have and exceed the federal authority but we have to build the wall, stop the flow but we also, what i was testifying in washington about four or five months ago, i was asked by congressman king, what should we do with instance where is the elected officials are -- are harboring people through the sanctuary policies, and my answer was very simple and straightforward, if you want these things to stop, issue arrest warrants on elected officials who are deciding how much or how little of a law they want to follow that's on the books. and in this country if you want to change the laws, then you go to congress and if they don't want to change it, you continue to lobby and do what you have to do but you cannot decide what

federal laws you're going to follow in part or not at all and that's what's going on with the elected officials and should be held accountable. neil: thank you very much, to your point that young woman would be alive today if not for what happened. thank you, sheriff. in the meantime on what's happening in midtown manhattan. the president of the united states has arrived and a number of fundraisers and favorite spot for these type of fundraisers where democrats and republicans, quite a few as well but the president could, you know, be talking about the tax cuts situation, of course, the late vote last night about 2:00 in the morning before it was all decided where he got his first clear big legislative victory. he's done a lot of executive orders and executive memorandum but the scene outside, protestors there as well, we got wind of the president of united states would be there, some not

fan of the tax cuts, some are fans of the tax cuts. we do know that they've going to move their hinies fast, though, they want to compare and contrast what's on the table and get something to the president within the next week or two, well before christmas to make a moot point of alabama election and scandals going on in congress and who is paying whom and who is embarrassing home and who is sending photos to whom, that's a whole other piece of drama. the president is going to likely quote to fundraisers and maybe folks outside about tax cuts.

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neil: all right, you are looking live shot of new york city, midtown manhattan. famous empire state building and you are looking in midtown manhattan where the president of the united states is due to hit a fundraiser here, not far from grand central station. i think it's fleer there. the president is going to not only have this fundraiser, a couple of others, this one he could talk outside once he goes in there, he might do a little bit as he did this morning about the tax cuts approved in the wee hours in the united states senate. lauren simonetti joins us right now outside. what do you have? >> hey, there, neil, we just got here moments ago. i will let you go off to side so camera man can show protests. again the tax cut plan that the senate passed in the wee hours in the morning, a lot of health care workers in particular here. the president on his way, he just arrived here and he will be

speaking at a series of fundraisers, one happening right behind me. in a few hours expected to make some sort of remark to that breakfast and obviously a lot of questions and topics that the president can address. i don't know if you can hear the loud chanting behind me but on one side of grand central, the other side of one of those fundraisers, the busy time of the year particularly in new york, so there are sand trucks barricading grand central station and the protests are getting louder as the president gets near, neil. neil: i know it's hard for me to hear me but sounds like they are protest has to do with the tax cut passed fbi senate but i heard them earlier in the break, they were talking about all other sorts of problems including the general flynn thing. across the board rants or what? >> i asked one of the protestors, i said why are you here, and he said i'm here to

protest the tax plan last night. i said is it because the individual mandate repeal of obamacare, the affordable care act, he said pretty much but everything else too. so i had asked him follow-up if they didn't repeal that, would you still be here and he said, yes. so this is quite honestly about the presidency and the tax is ices on the cake for protestors here. neil: it's a free country. free to protest. lauren, thank you very much. lauren simonetti we will be going back to her as conditions dictate and when the president arrives there, we will keep you posted on that as well. all of this at a time, sideline issue that seems to be sideline this week but started out the week as big worry, north korea's latest test after two months of during dormant of a missile. apparently now north coráns have capability to hit anywhere in

the united states. they are progressive more than we give them credit. why do we do this? what do we do? we are talking about stiffer sanctions, someone is providing something to north koreans to keep them through sanctions, would they do the trick? >> the united states has not applied hardly any pressure against the country who has aided and abetted north korea and that's china, until we begin that in earnest, whether affecting banking industry, we still have lots of economic and measures that we can employ along with diplomacy to be able to head off any kind of military action. on one hand, while we need to prepare it. we need to put systems in place, whether it's that'd -- thaad or

be prepared when this threat continues to grow, oarpd, we need to have a lot more pressure put on china because they are the ones causing this. neil: you know, commander, i'm wondering if the chinese, i'm sure they were given a heads up of launch missile test before north koreans did it, maybe not, they had senate representative there at least under the appearance of doing something, maybe it's legitimate and heart felt and sincere but the north koreans still did this, they had to know that would make the chinese look to the world like fools, so can china even control this? >> we haven't seen china apply any pressure yet, they have done things on the margins, even today they are barely comply if they're complying at all with any sanctions that have been put in place, russia is aiding and abetting as well. i think that we need to start in earnest, comprehensive plan that

will begin to lay out sanction that is china is going to feel that it's going to hit them right where it hurts, in their economy, yes, it is going to affect our economy, yes, our markets are going to take a hit, but now it's the president's responsibility to talk to the american people and say, this is why this is a threat, this is the danger it opposes to our nation, this is what we are going to do to counter it, these are the affects we are going to feel but as a nation we have to do it because the consequences of it cannot be measured in a detonation here at home. neil: commander, thank you very much, appreciate it. >> thank you, neil. neil: all right, kirk, we have more in the next hour probably hearing from the president of the united states, we are also going to the hearing from the house ways means chair kevin brady and what he makes of senate plan and his own and ted cruz on one republican senator voting against this, emmanuel

cleaver and pam bondi on the whole general flynn oh-oh. whole general flynn oh-oh. more let's meet at a sleep number store.

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>> all right. welcome back. you're watching live on the left of your screen. this event at cipriani's in midtown manhattan. outside of cipriani's to the outside of your screen where there are a number of protests. and this is routine from both parties. this generated protests, the tax cut the latest catalyst that folks don't feel they're treated fairly and they feel it's their right and it's the president's right to argue. and he's going to raise a good deal of money and a couple more planned for later today and all of this, of course, on the heels of the president getting his first big legislative win. he's had executive ords