in the end corker said there back in, should give republicans john mccain and bob corker an extra day to recover, they are both end votes. >> the final version keeps seven tax brackets reducing five of them.

foxbusiness contributor, let's be as pedestrian as possible because so much out there. who benefits most, >> a lot going on. 44% of people not paying taxes

will go to 47% because of the standard deductions, $24,000 come off before you get taxed. the middle-class are going to do well in higher tax states, not as well because of the limit to how much they can deduct. the big winner is the corporations, 35% to 21% but that needed to be done. when you are an international corporation you have to compete with everybody so they are down and into the economy going forward. arthel: we will do this step-by-step. you did give us an idea from the tax plan and when will they realize the plan is not

as great for them? >> that will depend on the state, how much you make it or itemize. but the bottom line is most people will get some sort of tax cut. $2000. person. arthel: but you say taxes are coming down. that's great absolutely but there is the question the polls are showing me be this why it is not as popular. will the middle class or those earners pay more taxes? >> in the high tax states possibly. in the others it is a definitive tax cuts or in those no tax states no negative effect at all.

but they compromised on the deduction of state and local taxes so they made it up at $10000 if you make a significant amount that does not help. the talk that the rich make out there is a lot of wealthy people in high earners paying heck of more taxes just because of that rule. arthel: i will follow up on that but moving forward. this was billed as a simple tax plan to fit on a postcard. you just held up a bunch of pieces of paper. is it simple? >> with the tax code with 70000 pages nothing is simple. there will be some people that there are so many moving parts they kept seven tax rates i would've been thrilled with three but i think competing

forces got involved with a lobbyist they decided to do it this way. arthel: you mentioned the $1 trillion depending on which report you read and there is that deficit. >> the country will be more in debt. pays for that? >> all debt ultimately is paid by the taxpayer in the long run but keep in mind something that hardly anybody is talking about in the next ten years it will add 1 trillion to the deficit just with government spending over spending will spend nine or 10 trillion. you don't see any politician yelling about that it is quite amazing it is bad for the deficit but overspending. >> i don't want to be political in this segment that

people are wondering what will happen in 2018 when they file taxes. and the other thing is will this new tax plan produce jobs? >> corporations will be more profitable. it doesn't mean to have a great possibility and probability. i expect some of that extra profit with the higher dividend but down at the three gdp and to be in pretty good shape right now. >> i think you did just cross your fingers. gary called bomb thank you so much. >> thank you.

>> now evacuation orders are still in place for southern california. as they are continuing to rage 260,000 acres is now the third largest fire in the states history and so far has destroyed hundreds of homes and putting thousands more at risk. >> we are watching them shoot up 34 feet that you could almost touch them. it is incredible. >> being battered by the wildfires now in montecito california. >> the wind has picked up over the last hour that is bad news it has also spread smoke across this community. a couple minutes ago you can see the sun is covered up by the smoke a blood orange

-looking get over the national forest where the fire continues to burn firefighters are doing everything they can. if we just go up to where they are look at what we saw. looking down at the property next to me they did a great job jumping on top of that to make sure that situation didn't get out of control. we can see fire engines on every street doing structure protection because the fire right now is up on the hillside if that is pushed by any wins then the firefighters do everything they can to make sure they are protected. >> as the fire continues to burn and the wind pushes the smoke around it is raining ash. we have in standing the past couple of hours. this thick coat look at that.

that is what people are breathing. not just santa barbara but across the region throughout the course of the day. >> and to see that devastation that is so compelling. arthel: very, very sad now my best friend has been evacuated. we are keeping an eye on that. now the uproar in the middle east more than one week after president trump historic decision to recognize jerusalem as israel's capital clashing with israeli forces demonstrators helping them and israeli forces writing back with tear gas and rubber bullets we are following this story from london. >> with those palestinian protesters to recognize

jerusalem as the capital of israel. >> the announcement by president trump angered many palestinian -- palestinians because they don't regard to the capital of jerusalem but israeli security forces were clashing with the protesters in jerusalem today. they show no sign of diminishing also funerals where held in gaza today. and the protest is worldwide. and that is the suggestion to recognize jerusalem but many say that palestinian officials

say they will not meet with vice president mike pence they are turning to a demonstration instead. fox news. arthel: eric? >> roy moore conceded the race today and how the embattled republican is trying to swing back in his favor. so just before this time now on death row in san quentin for killing his pregnant wife. now we take a look back.

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roy moore is still refusing to concede trying to take more

donations for the election integrity find the money will be used for voter fraud across the date that even president trump says it is time to throw in the towel. >> i want to support the person running we would like to have the seat but i would certainly say he is done. arthel: the first democrat to win the alabama senate seat in more than two decades getting 50% and wrote wrote -- roy moore got 48%. eric: the crime that captivated the country eight months pregnant with her first child and vanished into thousand two. lacy peterson her body found months later and her husband scott peterson accused of killing her and their unborn child. he sits on death row in san

quentin after all these years in spite of insisting he is innocent. we look back at the case 15 years later. >> it gripped the nation any month pregnant woman from modesto california 2002. >> they are no closer to finding her than they were christmas eve on the day they vanished. >> the northern california schoolteacher drew immediate media attention 15 years ago. >> we have been through so much i would like to make a plea to the person who has my daughter. please bring my daughter home. >> attention quickly turned to her husband scott who told family members and investigators he was fishing that morning saying it wasn't uncommon for them to do things on their own. >> she is eight months pregnant she doesn't want to go out on the vote but that is

a leisure activity to pursue that day. >> one month after her disappearance it was revealed he was living a double life having an affair with a massage therapist the single mother went to police when she realized her boyfriend was becoming a prime suspect. coming to a crashing end when the bodies of the bb boy and a woman washed ashore not far from where he said he went fishing. positive identification confirmed their worst fears. >> we will seek justice for her and connor to make sure that person is responsible will be punished. >> scott peterson was arrested four days later and into thousand four he was found guilty and the following year sentence to death. both the peterson's appellate cases are pending in both challenge the death sentence and request a new trial.

eric: we will have an in-depth look tomorrow night calling interview with a monster with lee scott peterson case. right here on fox news channel. a chilling case. arthel: as the fire continues to rage in southern california will poor weather conditions let up giving firefighters much needed help? the department of justice officials are a key figure in the russia probe. we will hear from the senate intelligence committee next week. ♪ ♪ the right strip it instantly opens your nose... the right strip up to 38% more than cold medicine alone go to breatheright.com today to request a free sample.

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booking a flight doesn't have to be expensive. just go to priceline. it's the best place to book a flight a few days before my trip and still save up to 40%. just tap and go... for the best savings on flights, go to priceline. arthel: two weeks and still firefighters in california are

struggling to contain fast-moving wildfires. the flame fueled by intense wind and dry weather have earned hundreds of homes forcing tens of thousands to evacuate. we are in the weather center. the weather conditions are described as critical any chance they will let up soon? >> unfortunately no. we will only see them strengthen so looking at the elevated fire danger over the large portions of california from lowe's angeles to surrounding areas to the north getting up to san francisco or where we saw fires earlier in the year. we will continue to see this type of weather. and then to see these getting at the 30 or 50 miles. hour. here is the timestamp.

the wind will be picking up to fuel more fire concerns tracking into the second half of the weekend and then still fire danger around northern california. if there is one thing we needed was a little bit of rain but unfortunately not now. some is developing off the gulf of mexico just now firing up the last couple of hours now and portions of eastern texas will build for those across the southeast me see severe thunderstorms. but unfortunately it will be a little while for relief.

that's the way it goes these days. >> the attorney general dropped from the russian investigation and to testify before the intelligence committee with the department of justice official demoted with the fusion gps that is to have the dossier on donald trump. but his wife on the right said was doing the trump opposition research during campaign season. and now they will testify before the committee.

and so that the dossier was trumped up to make a case against the president. and that the investigation is credible. a lot of critics and republican republicans. so mercedes let me start with you. now you have these e-mails. so frankly how could you say that? >> really there is no concrete evidence because those who have gps so the communication between the two we will not know so then whether the deputy met with the

discussions of gps something stinks in denmark. frankly just to absolve some of these and proprieties to go through these issues. >> even though the department of justice official very high ranking working on gps is the guy who cannot get it out of him? >> they cannot have spouses testifying against themselves. he will not get one spouse to testify. >> can he talk about steel or motivation? >> to exercise spousal privilege and not testify against each other.

>> they cannot be compelled that they can voluntarily waive the privilege. and to give a sneak peek that the feds do pay witnesses compared to the dossier and that the overlapping. with that hillary clinton investigation starting to get into the interference with the investigation and we saw that with the text messages discovered by the inspector general. so what we have seen he had his hand and basically everything. he was a part of the clinton

interview and also shrinking the language of gross negligence from the initial announcement because gross negligence as required in the federal statutes of mishandling. . . you have a laundry list. he has at least one page. calling them a name. to say that trump presidency is terrifying and very clinton has to win and the guy in charge of the e-mail investigation that waters down the description so they can't be prosecuted at the same time the department of justice calls that a matter not and investigation. >> it is starting to pile up

and we have the inspector general report coming out shortly reviewing the clinton investigation because rosenstein was on the hill with these very difficult questions of a conflict of interest and it should be interesting. >> what do you get? >> to bring in another special prosecutor. every week we start to see their other problems of the investigation. there is so much scrutiny that all eyes are on. . . but with professional prosecutors or investigators these are preconceived notions

even though they think that trump is terrible they are professional. >> but they were also critical of others so it goes both ways. looking at the tip of the iceberg thousands upon thousand thousands. eric: calling bernie sanders an idiot. >> and two of those trump accusers the money for these accusers? what does that mean? >> so these accusations have to be delved into whether there is payment or nonpayment so it is really about due process.

>> so the brave trump accusers not today or not ever i stand with them. is this a lot about nothing? >> it should be looked at absolutely to be the most problematic aspect is the timing because the $750,000.2 days prior to the presidential election. and they said it wasn't from the hillary clinton campaign but this amount of money is provided for somebody to come out. >> that there is no evidence whatsoever that they are paid to live. and there was absolutely no

evidence she was paying any of these to come forward. >> they say they are telling the truth. there is the hill report. they need to read both of these no doubt. >> so then you have the dossier. >> where is the money coming from? if this has anything to do with the presidential campaign. >> this is the tip of the iceberg.

so to talk about the dossier and the russian investigation it comes down to the truth. >> absolutely. thank you for your insight. arthel: rex tillerson changing his tune on north korea and kim jong noon now he has a new message well protest erupted around the world over president trumps recognition of jerusalem and now why nations are trying to calm the chaos. ♪ ♪

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that the u.s. was open to talk but with no preconditions and then to address the security council took a harsher tone and they would down on the position that north korea must and threatening behavior before any negotiations could begin. >> we have been clear all options remain on the table but we do not seek or walk with north korea. the united states will use all necessary measures to defend itself against north korean aggression better hope remains diplomacy will bring a resolution. eric: t19? >> so secretary of state tillerson said he thought it was unrealistic to commit to the nuclear program while for

negotiation even begin. the last day just themselves from his comment to say north korea has to prove they are serious before meaningful negotiations begin but this is next messages or another sign that tillerson and president trump may not be moving forward tillerson has a willingness to talk but president trump has not and in october he said tillerson was wasting his time trying to talk to north korea but on friday tillerson said he and the president say the ball is in the court of north korea. >> with a threatening behavior must occur before talks can begin. the pressure campaign must and will continue in the meantime

keep the channels of communication open. >> do they simply have to stop testing the missiles to begin? they stopped shooting missiles 75 days this fall thinking that they may be coming around but then they shot a new one capable of reaching the united states late november. not only will the north okay -- korean stop shooting missiles but with seer and meaningful actions before negotiations can begin. the secretary of state encourages them to pressures korea to leave them no choice but to come to the negotiating table right now as they are celebrating the sixth

anniversary of his father's death. lindsey graham says time is running out. that there is a 30% chance president trump would attack north korea first. arthel: so now for more we will bring in the adjunct fellow and pulitzer prize winning author and fox news contributor. so what appears behind the mixed messaging? >> so the administration wants to have the good cop and bad cop and the bad cough is president trump that is what he relishes but the good cop

is secretary tillerson. because nobody has had any success but it is rex tillerson who reversed himself that the u.s. wants negotiations without preconditions that they have to demonstrate that they are stopping testing for a sustained period of time but no one knows what the administration or go to the table. arthel: they are not always in lockstep with the president. but with 24 hour news coverage does this between tillerson and the president? >> if you remember it is a

long-standing challenge and problem because in october president trump tweeted secretary of state was wasting his time by attempting to negotiate with north korea so it isn't clear if president trump is interested in negotiations because those around him say it has led to agreements that cannot be kept up by korea so it is not clear what they want. and to frame that as an accidental war to be at in the very strategic part of the world. and secretary tillerson it is very important to remember he follows lockstep with president trump he has referred publicly to three

separate back channels so there is communication and that is important. arthel: and lindsey graham met with the president and you heard the report earlier of him to say another test by north korea could likely prompt the president to use a military option. what if that happens? what happens in the aftermath? >> as the general has said on fox news the president is rolling out anything most likely an initial military response that would of course be non- nuclear and it would be whatever they are firing the missiles from but the problem with that scenario is once military action starts nobody knows where it ends

though it is a very dangerous game. china especially not on board. yes they have gone along with the united states on sanctions but the administration itself must do more many hawks say to really implement the sanctions we have south korea and i was there six weeks ago. but south korea really wants to so they show no interest to resume ties with north korea. arthel: thank you judy muller for urinalysis.

eric: lawmakers in california are called to do something about the out-of-control housing crisis and how things got to this point and they can do next ( ♪ ) more people shop online for the holidays than ever before. (clapping) and the united states postal service delivers more of those purchases to homes

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eric: the crisis has increased in california prices are skyrocketing and homeless encampment are growing as quickly the majority for those areas in the country happens to be in the golden state. we have a closer look. >> california has a housing crisis. we cannot give housing to citizens. >> to be in economic paradise it is a failure with affordable housing. >> the tragedy for those middle income folks. >> they built more homes than the entire golden state according to the national homebuilders association. >> california's building less than half than necessary and as a result 70% of the state cannot afford to buy a house.

>> this helps to explain why a median priced home $458,000 more than twice the national price san francisco 1.5 million. to buy a home in lowe's angeles a buyer would need $120,000 twice as much as what the people want to be here but the cost goes up. >> who is to blame? because environmentalists oppose growth. >> seven years later still trying to build new homes near san diego to battle environmental lawsuits over 20 years. >> it extends the amount of time with the development because time is money. >> but the opponents have a

backlash. >> that is developmental to have housing. >> that is nonexistent as another year of interest rates and taxes and higher prices. arthel: another twist as republicans find a new reason. we will talk about that next. lyrica is believed to calm these nerves. i'm glad my doctor prescribed lyrica. for some, lyrica delivers effective relief for moderate to even severe fibromyalgia pain. and improves function.

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arthel. eric: continuing the harsh criticism when it comes to the washington investigation talking about an overhaul of the agency. with our fbi official is saying those same agents have the same language and elder -- only clinton e-mail investigation. a top white house official now says to hold extreme bias as

the president lashes out. >> we will -- we will rebuild the fbi. how that is disgraceful and angry people that are seeing that. >> in the meantime looking at the trump transition team claiming robert muller and his team inappropriately obtained private documents some were obtained under attorney client privilege. live now at the white house what can you tell us work. >> setting to the heads of the committee and in that letter it alleges that special counselor muller acted inappropriately with those materials for that transition.

rather they did that to the general services administration to be doing that during the transition now any request to access that material data is supposed to go through the transition team but it claims that there were two letters to the agencies, not subpoenas but laptops and cell phones belonging to the transition members largely responsible for national security and policy issues. they were left completely in the dark but the transition teams are not immune from lawful search and seizure it is vital that these investigations of a procedural safeguard many have a

constitutional providence also many of those e-mails were subjected or protected by privilege or attorney client privilege and when we asked the special counsel team about that they said quote mac to contact us to inform us the special counsel had failed that they simply reviewed the privilege communications in the materials and they also argue that this situation could put future presidential transition teams at risk to be misappropriated by other government agencies later this week the legal team is meeting with the special counsel muller as well. arthel: a big week the

president criticized even yesterday just leaving quantico he kept speaking out against the fbi. >> the president has felt vindicated that the top fbi officials were involved in the hillary clinton investigation or the trump russia investigation now yesterday he called those revelations disgusting. >> look at what they did with respect to the hillary clinton investigation, it was rigged and there was never anything. it is very, very sad. >> over an hour later he took a much different tone where he

praised law enforcement and the rank-and-file agent. >> i am here not only to congratulate you but to honor you for your courage and devotion. i want you to know with me as your president, to have a true friend and loyal champion in the white house more loyal than anyone else can be. >> to be back in the spotlight this week there are new revelations. arthel: thank you very much. eric: now who is expected to testify? it seems the top democrat in the house intelligence committee is expected to interview the deputy fbi director this week.

so to be mentioned in that and tied trump text releasing the following statement to say the committee will be reviewing the witnesses regarding the dossier but no closer to understanding the russian investigation into our own elections. instead they are intended in the service of the president to cast out whatever evidence. so now let's bring in our national political corresponden correspondent. good to see you. so he will defend the robert muller investigation. what else? >> we will hear a wholehearted

defense to acknowledge comes to -- mistakes were made that they have defended robert muller we have seen that with the attorney deputy general he will defend the bureau and its work that face a lot of scrutiny from those on the committee. >> what could he see one --dash say about the e-mails? they call him and idiot. and can they defend them to be professional investigators who are not biased by their personal feelings with professional duties? >> what we heard all at vi agents have a bias but it did not taint their work.

i think we will hear that message again but the pushback then is as soon as they found out they were exchanging text messages but lisa paige had left a couple months ago the day he found out he did something about it but i don't know if that will fly. eric: some people say it is not fair. >> it is a data point that is part of the strategy on what he is doing and what direction this is going and certainly an effort by trump and his allies because they feel they have no chance -- no choice down the road.

eric: but that raises a lot of questions with the e-mails. i want to believe that the path that you throughout that there is no way trump gets elected i am afraid we cannot take that risk. in the unlikely event. i will read that again i want to believe the path for consideration so first of all what is the path? i am afraid we cannot take that risk against that insurance policy. so what is the path or the insurance policy? what are they cooking up? >> this is why i am equally offended. and to get the answers to these questions i don't know what they are cooking up but there was a feeling in the fbi

that they would not win because they felt he would not win and to be a hotbed of liberalism if you think of the fbi you don't think of card-carrying democrats. this is a bureau traditionally that has been conservative but these two agents tarnish the bureau. >> and those allegations? the one what possible point? is it possible and that watering down language of hillary clinton that was grossly mishandled it went from grossly negligent. >> that is not a legal term so

that she could have been charged but they were just watering that down. that valid course of inquiry and that these are the questions so it is hard for any person to have checks and balances in place not just fbi agents willy-nilly jim conley made that decision about what to recommen recommend. >> and then to get hillary off the hook? >> i cannot speak to why they chose to reduce the language i am not defending what they did

but no question decisions were made but i don't think that was just to get her off the hook. eric: so from another point of view you feel specifically and professionally that is what the fbi director said? >> i cannot speak to their motives they were not doing this for political reasons they felt that she had behaved badly and inappropriately. i don't know if that is the correct decision. but this is the argument. >> what about the critics? >> they will always continue there will always be a cloud. not just republicans but angry also feels that jim call me

cost her the presidency. the sixth will see what they say when he takes the old. >> my pleasure. arthel: president trump helps to have a tax bill on his desk by christmas in congress taking giant steps to make it happen and how all of that impacts your money. two decades in the making why jewel biden lung -- joe biden needs to apologize to anita hill.

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they appear out of nowhere. my secret visitors. appearing next to me in plain sight. hallucinations and delusions. these are the unknown parts of living with parkinson's disease. what stories they tell. but for my ears only. what plots they unfold. but only in my mind. over 50% of people with parkinson's will experience hallucinations or delusions during the course of their disease. and these can worsen over time, making things even more challenging. but there are advances that have led to treatment options that can help. if someone you love has parkinson's and is experiencing hallucinations or delusions, talk to your parkinson's specialist. because there's more to parkinson's. my visitors should be the ones i want to see. learn more at moretoparkinsons.com

eric: a shocking few weeks on capitol hill as lawmakers are accused of sexual misconduct and harassment. the latest is the texas congressman who said will not run for another term in a short time ago nevada congressman said he will not run either after he has been accused of sexual harassment and now we are live in washington tonight with more. with these continuing allegations. >> he tells fox he will not run after the scandal broke two weeks ago. the allegations that have

service or a distraction for the issues of the reelection campaign therefore it is in the best interest of my family and constituents to complete my term in congress and not seek reelection. he was accused of sexual harassment he apologized but says he does not remember any of it a campaign aide said she quit last year after he asked for and touched her inappropriately and another has a similar story and nancy policy has called on him to resign. >> i have said okun on the subject he wants to go through the ethics process that is his right to do. >> the ethics committee will also be investigating the republican congressman and sexual harassment charges against him. taxpayers paid the bill for the $84000 settlement with him for a former spokeswoman in his office. he says he will not seek

reelection. and others that have announced their resignation after sexual impropriety al franken and john conyers. other two are gone but franken has not said when he will quit. the ethics committee only investigates current members and they will still be in congress through january 29 those investigations are ongoing. >> talking about the impact of sexual misconduct with a former deputy assistant and the democratic strategist with the young democrats of arkansas. so the representative resigned moments ago but he will still keep his job of course he is

not running for reelection we will clarify so he does remain in congress right now but it begs the question does the ethics community have the authority to approve congressional behavior? mac so to have sunshine on this process. it is an outrage that public money is used to payoff accusers or victims. and with those members of congress it is an easy way of those problems that face them. that is an opportunity for them. and then to go after them criminally if that is the case.

it's not only happening in government but entertainment and other areas. there is no place for any of this activity in any workplace. >> i could not have said that better myself. i am happy to see so many women coming forward so where people should be held the most accountable. it is very rare to see that members ask them to resign this is about doing right by people and to continue to see that the protocols are in place to be properly investigated so right now that they can trust women and give them the platform that they

need. arthel: you make a good point so what is the legal background check guidelines? what are the guidelines for running for office? >> that goes out the window with public opinion. arthel: but we are talking if you run for office there is a criminal background check. >> i don't think that would be a bad thing because we are asking these people to trust them if they run for office so why not subject yourself to the background check? you think the american people deserve that. >> it is up to the parties to do their fighting to make sure they get the best qualified

candidate and with that party official so for those best candidates for office. >> and then this other topic is former vice president biden to say he owes anita hill an apology over the confirmation hearings more than two decades ago. then the senator was chairman of the senate judiciary committee right after gaze testimony of sexual harassment by thomas and now vp biden says my one regret is that i was was not able to tone down the attacks on her by some of my republican friends.

they really went after here as much as i tried to intervene i wish i could do more for anita hill i/o her an apology. and you may not know but mr. biden has said he will not run or rule out age 2020 run. also a few years after the thomas confirmation hearings drafting the violence against women act to launching it's the it's on us campaign some say it is a political ploy to clear the path for a presidential run in 2020 but some say itself is cynical. >> with regard to anita hill it is a little too late with political opportunities him on

--dash opportunism but joe biden are political has-beens. >> i am proud vice president biden to say he did feel that regret. to feel that they have wronged and that apology has to count and then to lift these voices to the issue it is so important right now. and then with accountability. and with that platform they could speak to that but also they have a president who has a number of accusers coming forward and they have not had any source platforms given the

number. it goes both ways. he is at least acknowledging he could have done more but now what he does to say i will help everyone be better that matters a lot but there will be other contenders in the next run for the presidency. he will not be alone. others that have to talk about this issue as well. >> anyway to forecast the impact of the sexual harassment allegations on the midterm elections? >> hopefully we are beyond that because it has no place in the political process. this is not a trickle effect we will have other government

officials having to resign or face these accusations to hopefully look at the issues like the economy and emigration and infrastructure. to see what matters to the people's lives. arthel: i have to leave it there. thanks to both of you. eric: tax reform and democratic and republican lawmakers. the gop is supposed to pass its bill next week and some are asking where the democrats? plus the u.s. gearing up to take an inside look training into the battle not the deserts of iraq. in the jungle.

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eric: republicans have reported in the senate for the tax bill. the gop's first major legislative win since as you know president trump took office. here's what the president had to say about all of this earlier today. >> this really will mostly benefit the middle class and jobs. companies are coming in. they are pouring into the country. they have our day started and this will be great for jobs. it will be fantastic for middle income people and good jobs it will also benefit lots of other things. we are looking -- if you look at the whole thing everybody is going to benefit but the greatest benefit is going to be for jobs and for the middle class. this is going to bring money into it as an example we think $4 trillion will come flowing back into the country. that's money that's overseas

that was stuck there for years and years produce 2.5 billion dollars in that it was 3.5 and is probably over $3 trillion. this is money that's been stuck there for years and i will come pouring back into the country so that will be -- and i will say because of what we have done with regulation and other things our economy is doing fantastically well. it has another big step to go and i can't take that step unless we do the tax bill. we have a tremendous spirit for the tax reform. this is going to be one of the great christmas gifts to middle income people. the democrats have been the soundbite, the standard sound bite before they even know what the bill is all about. they talk about for the wealthy. this is going to be one of the great gifts to the middle income people of this country that they have ever gotten for christmas.

[inaudible] what will happen is at the end whichever the administration is years from now they will make it and maybe can make it even more generous if we can get the economy like you should be. the economy now is at 3%. nobody thought it would be anywhere close. i think we can go to four, five and maybe even 6%. each percentage point is $2.5 trillion. we are really going to start to rock. we need this as a final push and you will see some numbers that are great but most importantly you are going to see great job numbers. jobs are going to come pouring back into this country which we need very much. thank you everybody. we are going to camp david now. eric: one great christmas gift for the middle income. our correspondent for the washington examiner who's in the new york studios.

we just heard the president say it. do you think he gets done he will sign it as he says by christmas? >> i think it's going to pass probably unanimously next week and you can understate what an important victory this is for their podcamp party. they started the year with their big push to repeal and replace obamacare. they tried several times. they struck out on that and it hurt the morale within the party. it hurt their agenda and slow things down and now here's their chance to pass tax reform which is one of the most important things they promised during the campaign season and the tax reform bill includes no repealing the obamacare mandate. they are getting to things in one here and they can walk away at the end of this year without hanging their head as failures but with really accomplishing a lot of what they promised they would do. eric: what about the critics who say for example obamacare millions could lose their insurance and is going to cause havoc and it's a gift to big

corporations announce regular folks? >> the tax cuts cut taxes on middle and lower income folks more than you can -- more than upper income folks. it will take away that the penalty that's affecting the vast majority people who are lower income earners who pay that penalty. the real risk is that a lot of people are signing up the premiums may go up that they are going up anyway. i think what republicans are going to do is to use this to launch next year into a replacement phase with the health care law with more choice purchasing across state lines and more regulation reduction in things that will help lower premiums and i think they are going to pass legislation to shore off a obamacare subsidies for people who are at the lower income levels. eric: do you think that will happen? we are saving parts of the obamacare scenarios and that will be a campaign point.

>> it's a rest though. they have got to get it done. a row risk is if they repeal the law and it does cause premiums to go up even more than they were already going up and don't forget. zara's -- already going out. if they try to pin that on republicans and blamed them for repealing the mandate republicans are now responsible for this and they are going to have to find a solution that i hold heard the speaker last week paul ray and say we are going to do this in 2018 to return to shore up health care in america by putting consumer choice in place that we initially tried to do to help replace obamacare. eric: nancy pelosi is saying the republicans only cut taxes and here's an interesting take from "politico" in terms of the tax fight. it has all the ingredients that help democrats kill obamacare repeal. energize liberal activist legislation that pulls in a toilet.

this time it doesn't appear to be enough and it will be a real low to the sweeping tax code. it is as you just say so what is the effect on the democrats and what if they do? >> it's much easier for them to take up his tax or farm bill because you are giving people tax cuts. the hard thing for democrats to argue against that. people are getting money on that whereas with obamacare you were curbing entitlement. much easier argument for democrats to make the bear up against the top argument next year if people are getting more money in their paychecks and we see money coming back and to the treasury through wage growth and job growth. hard to make that argument because jobs in america on overseas. that's been a big part of the talking points for all lawmakers so that tax cuts will not be for them to argue on the campaign. i think they will focus on health care and other issues and perhaps trump scandals but the tax cuts will not be easy for

them. eric: a lot of republicans are delighted to have the tax reform. to have it sent to president trump by christmas. that will get in the way of a lot of needed spending bills. we have a spending deadline coming up. we talked about this earlier. every couple of weeks the sky is falling. the government is going to shut down. >> neither party is motivated to block a spending bill. republicans are in charge and they want to get it across the finish line. we'll see another short-term bill before january when they come back in congress and take up something that will get us to the through the rest of the fiscal year. this is something that repeats itself as you say year after year but neither party is sure who will get blamed don't think democrats are going to shut down the government on december 31. think they will come up with an agreement with republicans of this parity between defense between defense and domestic spending and they will get it done and then they will be back in january and start the process all over again.

eric: it's all political. shutting the government down in 1994, they are all political down there. >> it's all politics but again everybody worries about getting the blame now and i think that's helping move things along and i think by january there will be a longer-term deal and we won't have to worry about it again until next september 30. eric: at least as political and they can get things done and that's what the american people want. susan for riccio thank you very much. it's nice to see you in the studio susan. arthel: secretary of state rex tillerson backtracking on north korea talks. mr. tillerson first said he would be open to it but has since changed his mind. what the secretary is now saying saying. >> are communication channels remain open. north korea knows they are open. they know where the door as. they know where to walk through that door when they want to talk

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arthel: secretary of state rex tillerson backtracking on comments he made about north korea. on wednesday mr. tillerson said the u.s. was open to talks with the regime even if north korea was still conducting nuclear tests. the white house from secretary tillerson at the united nations yesterday. >> we have been clear that all options remain on the table in the defense of our nation but we do not seek nor do we want war with north korea. the united states will use all necessary manners to defend itself against the north korean aggression better hope remains that diplomacy will produce a resolution. arthel: north korea spent months defying the u.s. and the u.n. with a series of missile tests. eric: growing concerns over kim

jong un. the training is happening in hawaii and we haven't seen these kinds of exercises in decades. chief correspondent jonathan hunt has more. >> reported a black hawk helicopter for a spectacular journey across the rain forest before being dropped in. joining soldiers here in hawaii many of them veterans of the campaigns in iraq and afghanistan learning to fight in very different kind of war. >> the goal is to be able to teach the skills to survive in a jungle environment. >> no one in the 25th infantry will talk about policy. they won't name the threat that they all know what might be coming. and as every vietnam vet knows

the jungle itself is not an easy enemy to conquer and the only way to do it is on foot. >> aloud rumble of armored humvees is the most familiar sign from the urban war. it's the sound of soldiers moving an almost total silence. >> it's so restrictive and everything is so tight. >> after two tours in iraq into afghanistan the jungle as a is a whole new challenge for first sergeant george but golly. >> i could move five or six colin amateur's desk kilometers. it's just very restricted. new experience for staff sergeant apollo reads after three tours in afghanistan and one in iraq. >> and simple terms is completely different than over

there. the soldiers spent three weeks living and fighting in the jungles, every minute designed to give them real world experience of potential future wars. >> is a force multiplier. >> you are pretty proud of the work you are doing. >> it's all the instructors and the ncos. they make a better free day. >> they also make u.s. army better, better prepared for whatever is next. >> that is our job to be able to fight the next fight. >> at the next fight is jungle-based it will be tough so this training is necessarily tough to. five soldiers who have been down this course three weeks ago just 33, made it through. at the 25th infantry division in hawaii jonathan hunt "fox news." arthel: our troops are nothing

short of extraordinary and we thank them. it's an annual tradition that truly embodies the holiday season wreaths across america. now marking 26 26 years. coming up we will tell you how the organization is reaching new heights in his honor for fallen soldiers. our investors stay confident for over 75 years. call us or your advisor. t. rowe price. invest with confidence.

arthel: today is wreaths across america day when an organization pays tribute to our fallen heroes at arlington national cemetery and across the nation. today is marking its 26 euros a truly incredible accomplishment placing a christmas wreath on every single grave in arlington national cemetery. more than 200,000 of them per joining me now is corporate communications and relations director for wreaths across america. so happy to have you here bre and if you could start by just telling us more about the mission and the purpose behind your wreaths across america and what it means to you to be a part of it. >> thanks so much for having me. the mission of wreaths across america is to remember honor and teach every fallen servicemember servicemember. this particular cause means so

much to me personally because i have over 30 friends buried at arlington alone so my circle of friends arlington cemetery is not just a landmark in the washington d.c. area, the final resting place for many of our friends. arthel: does a wreaths across america take on it different meaning from year-to-year? >> it does. this year's theme is i'm an american, yes i am and we know you know the nation can be divided. there is always something interesting going on in the political world but one thing we can all rally around as americans is the love for our servicemembers in our gold star families. arthel: what is it about their veterans and gold star families the one that americans always remember? >> i want them to remember 1% of our population is serving in

active duty. so important, they fight for all of us. our servicemembers are out there fighting for us every day and when we have a servicemembers that pays the ultimate sacrifice it's a time for the rest of america to stand up and honor their legacy and remember their service and their sacrifice. the best way to honor their service is to take of the families they left behind. arthel: well said, bre. thank you for your hard work, your dedication, your compassion and we wish you continued success with this program. thank you very much. merry christmas. eric: just wonderful. and wreaths across america.org. and we will be right back. at invisalign.com

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at ancestrydna.com. you or joints. something for your heart... but do you take something for your brain. with an ingredient originally found in jellyfish, prevagen is the number one selling brain-health supplement in drug stores nationwide. prevagen. the name to remember. eric: for this christmas story a small town in the midwest spread christmas cheer around the globe. the post office and know well is very quite aptly named every year since cards around the world because cards gets shipped to the post office and they get a special know well stand for the cards are sent from there across the globe. started back in the 1930s and it's been going ever since. so far this year they have stamped more than 21,000 cards.

arthel: i like it. it's a nice peaceful town. that does it for us. we are backs tomorrow at noon, four and six eastern. up next "the fox report." eric: have a good night. >> the trump administration on the cusp of its first major legislative win as members of the president's transition team level accusations of wrongdoing against special counsel robert mueller. i molly line and this is "the fox report"." trump transition officials raising a red flag over the mueller investigation. in a letter to lawmakers they accuse the special counsel transition documents from the general services administration. apparently as a workaround for issuing a subpoena. more data just a moment but first president trump heading to camp david as the g.o.p. announces it has the votes to pass tax reform.