high drama. >> good to be here. >> jon: outnumbered. >> republicans on the verge of a major victory. the senate passing the g.o.p.'s tax reform bill last night. and very soon the house should be voting on minor revisions to the final version. last step before the bill goes to the president's desk to be signed into law. this is outnumbered. i'm sandra smith. and here today is harris faulkner, the editor of town hall.com katie pavlich. democratic strategist and fox news contributor jessica tarlov is here. today on the couch we have lieutenant colonel michael waltz retired from the u.s. army is he a former green beret commander and counter terrorism advisor to vice president dick cheney. he is outnumbered and i say that with all due respect, sir. good to have you. >> no one is shooting at me. i'm good. >> are you sure about that? there are four women here. >> harris: words with power.

>> every day we are born in this country i'm one lucky guy. >> sandra: amen to that merry christmas, everybody. we will keep with that theme. meanwhile republicans are celebrating a major legislative win on tax reform. the house about to vote again. this time on a revised version of the bill today the senate already passing the measure late last night. so they can send it to president trump to sign in to law. >> i was very excited. it was a very emotional time. i used to be, you know, jack kempf was my mentor. i have been working on this issue pretty much my adult life because i just feel so passionately that this is going to help get people from welfare to work. it's going to get people higher wages, better jobs. it's going to put the american economy in the lead in the global economy again. i feel very passionate about it. >> a large share of the credit goes to every single member of this caucus who voted for the bill. >> this is historic night. the democrats have said that the american people will remember this night. i hope they do.

>> my view of this, if we can't sell this to the american people, we ought to go into another line of work. >> sandra: no democrat voted for the bill. and senate minority leader chuck schumer has this warning for republicans. >> the republican tax bill is like pouring gasoline on a raging fire. easing burdens on those who already have so much while punishing or ignoring those who have too little is a profoundly unpopular idea. my republican colleagues ignored the warnings of the american people at their own peril. vote no. otherwise, i believe the entire republican party and each of you will come to roux this day. >> harris: you can bet the president will be talking about taxes the very term we pull away from now we go to the white house inside the

cabinet room the president on taxes, the potential shut down of the government if they can't reach a deal and more. let's watch. >> thank you very much. i appreciate everybody being here. cabinet meeting. and this looks like it will probably be our last cabinet meeting until the new year but who knows. you never know what happens with cabinet meetings. we have had some really great and productive ones. this will be one of celebration. because of what took place last night. we had a historic victory for the american people. it will go through final passage today in the house. then the congress men and women and the senate will be coming over, the republican senate, unfortunately, the democrats don't like to see tax cutting. they like to see tax increases and they like to complain. but they don't get it done, unfortunately. but they complain a lot. so, we are going to have the republican senators come over. have the republican members of the house come over. we have a news conference and people are starting to

see how great this historic victory was, the passage of the massive tax cuts and reform. it's a lot of reform in there, but the tax cut supersede and i said very specifically use the word tax cuts. you know for 34 years, they have been trying to do this, and they haven't and they used the word reform. there is reform but i said we are going to be talking about tax cuts. the heart of our bill is a tremendous amount of relief for the middle class, including a doubling of the child tax credit and nearly doubling of the standard deduction. that's going to be tremendous for people. this will start seeing the results in february. this bill means more take home pay. it will be an incredible christmas gift for hard-working americans. i said i wanted to have it done before christmas. we got it done. i want to thank all of the leaders. i want to thank mitch mcconnell. i want to thank paul ryan. and so many other people and we'll go through the official ceremony in a little while when they come

over to the white house. but, you've had -- we have a tremendous amount of talent in the house, a tremendous amount of talent in the senate. i can tell you that. and they love this country. the bill also includes a new family tax credit for dependents. it makes the vast majority of family farms and small businesses exempt from the estate tax. the estate tax was killing the farmers. they were forced to sell farms at bargain basement prices. they don't have to do that anymore. and it brings overseas corporate profits back to the united states. our plan also lowers the tax on american business from 35% all the way down to 21%. that's probably the biggest factor in this plan. we become competitive all over the world. our companies won't be leaving our country any longer because our tax burden is so high because now we are down toward the lower end of the spectrum as opposed to being the highest. we were the highest. and it's really above all else, it's a jobs bill because these corporations

already coming into the country but they are going to start pouring into the country. it's about jobs. and they are going to build really great companies and a lot of jobs. we have already created over 2 million jobs since the election. the stock market, as you see, it's an an all-time high yet again. i think that's 86 times since i got elected. 86 times we are at all-time high. unemployment is at 17-year low. we have liberated the american economy from washington overreach, cutting 22 regulations for every one new regulation. the most in history by far. we have cut hundreds and hundreds regulations. people have their businesses, work their businesses and highe high hire people. we still have plenty of regulation. don't worry. regulation is not the worse thing but overregulation is -- was stifling in our country. you couldn't do anything. we have unleashed u.s. military might on isis and

today the coalition against isis has captured 100 percent of the territory once held by the terrorists in iraq and syria. we are close to 100 percent. we will be finished pretty soon with the isis situation in those two countries. and we're making it very difficult for them to come here. believe me. we are fighting very hard. homeland security and our great military. we're restoring immigration enforcement, at levels that our country has never seen before. and taking the fight to the criminal gangs like ms-13 where we are disseminating those animals. they're animals. what they do is horrible. , horrible. and we are making the immigration system work for americans. but why are cleaning out towns of those ms-13 gangsters. that's why we are calling on congress to fund the border wall, which we're getting very close to. we're working on that. we have a great wall. we put up as you know six

different varieties of wall. we are going to be able to see through. we have help from the border patrol and ice agents. we are getting their input on the wall who knows better than them. we want vision and want to be able to see through who is on the other side of the wall. we have some wonderful prototypes that have been put up. and i may be going there very shortly to look at them in their final form. and we will be building the wall and we will be doing lots of other things. we will very importantly be funding and closing the loopholes that undermine our enforcement. and we will get rid of chain migration and the visa lottery program. we had a lottery program where we take in a lottery people from other countries, in some places we are bringing in some very bad, bad people. and through chain migration and through the lottery, the man that ran over people on the west side highway in

manhattan, a month ago, two months ago, he came in through the visa lottery. we don't want this group of people anymore. people -- met him in the neighborhood. they all said he was horrible, nasty, mean. wouldn't talk to people. they could see it coming. they could actually see it coming when they went back to his area where he lived. they could see it coming. they said what's he doing here? well, when we take people that n. a lottery, they are not putting their best people in the lottery. it's common sense. they are not saying let's take our best people and let's put them into the lottery so we can send them over to the united states. no. they put their worst people into the lottery. and that's what we get in many cases. so, that's not going to be happening anymore. we are going to end it. we are ending the lottery. we are ending the chain migration where, in his case, they say he might have had up to 24 people come in with him indirectly. aunts, uncles, cousins, grand fathers, grandmothers.

and they come in because one guy gets. in then you bring the whole family. and not a lot of jobs there, either. i want to tell you. not a lot of working jobs. we're rebuilding our nation. we're rebuilding our confidence. and we're standing in the world as a different country. we are being respected again. today the entire world can see that america is coming back and america is coming back rapidly and strongly. they see that with what's going on economically. this is even before the tax -- the tax cuts have been approved. i have to say that a lot of people thought the tax cuts have been approved. i heard a couple of our folks, steve and gary and a few others this morning. and they're thinking that the market hasn't fully digested what they've got here. i don't think the markets even begun to realize how good these are like, for instance, full expensing and other things. we have things in there that is so incredible. one of the great things is bringing back, perhaps,

$4 trillion back into our country. $4 trillion. money that we couldn't get back because of our tax code and because of regulation. we weren't able. that money now can flow back into our country and produce jobs and go into our companies where they want to spend it they want to spend the money here. they weren't allowed to. americans are filled with excitement for the future. optimism like they haven't seen. have you seen all the charts. and enthusiasm for the incredible possibilities that lie ahead for our country. at this wonderful time we have a blessed country we are renewing our bonds of loyalty to each other and to this nation. this nation is a nation with tremendous spirit again. you see that. housing confidence is the highest it's been in many years. just came out. manufacturing the highest level of confidence they have had since they started doing it many years ago. and business that has the highest level of confidence. so we're doing a lot of

things. so we'll be meeting again, the cabinet will be meeting again shortly. but, we have done a job like no administration has done. we get the final passage. and we are waiting for that final passage, as you know, we do have to come through one more vote in the house. and it's being done virtually as we speak. so, when that's done, you add all of that to what we have done in terms of regulatory, in terms of military, we have, as you know, we are going 700 billion for military. we are rebuilding our military. we cannot have a weak military in this time and age. so we are rebuilding our military. but, when you add it all up together, and then you add two things, the individual mandate is being repealed. when the individual mandate is being repealed, that means obamacare is being repealed. because they get their money from the individual mandate. so the individual mandate is

being repealed. so, in this bill not only do we have massive tax cuts and tax reform, we have essentially repealed obamacare. and we will come up with something that will be much better. whether it's block grants or whether it's taking what we have and doing something terrific. but, obamacare has been repealed in this bill. we didn't want to bring it um. i told people specifically be quiet with the fake news media because i don't want them talking too much about it because i didn't know how people -- now that it's approved, i can say the individual mandate on healthcare, where you had to pay not to have insurance. think of that one. you pay not to have insurance. the individual mandate has been repealed. the other one is anwr. so, a friend of mine who is in the oil business said i can't believe it anwr, they have been trying to get it for 40 years. 40 years and i didn't know that. we have anwr. we are going to start drilling in anwr.

one of the largest oil reserves in the world that for 40 years this country was unable to touch. that by itself would be a massive bill. it will be one of our biggest -- one of our biggest oil reserves. it's one of the biggest in the world. puts us at a level that we're not even at now and we are doing very well in terms of, as you know. energy. but, anwr by itself would be a big bill. but that's when it hit me. when he said, you know, they have been trying to get that the bushes, everybody, all the way back to reagan. reagan tried to get it, bush tried to get it everybody tried to get it. they couldn't get it passed. that just happens to be here. and we did that at the request of the two great senators from the state of alaska. which is a very special place. but i will tell you, anwr is a big, big deal. it's not ever mentioned by the press. and that was fine until now. now you can mention it. so, we're going to have

tremendous energy coming out of that part of the world. and people have wanted to do it for 40 years. so, with that i'm going to ask ben carson, you can stay if you want, because you need the prayer more than i do, i think. you may be the only ones. maybe a good solid prayer and they will be honest, ben. is that possible? we will ask you to say grace? thank you. >> our kind father in heaven, we're so thankful for the opportunity and the freedom that you have granted us in this country. we thank you for the president and for cabinet members who are courageous, who are willing to face the winds of controversy in order to provide a better future for those who come behind us. we are thankful for the unity in congress that presented an opportunity for our economy to expand so that we can fight the

corrosive debt that has been destroying our future. and we hope that that unity will spread even beyond party lines. so that people recognize that we have a nation that is worth saving. and recognize that nations divided against themselves cannot stand. in this time of discord, distrust, and dishonesty, we ask that you would give us a spirit of gratitude, compassion, and common sense and give us the wisdom to be able to guide this great nation and the future we ask in the name of the father, the son, and the holy spirit. amen. >> amen. >> thank you, ben, beautiful. thank you very much. mike, would you like to say a few words? >> well, i appreciate it, mr. president. as i told you last night, shortly after the senate vote, i know i speak on behalf of the entire cabinet

and of millions of americans when i say congratulations and thank you. thank you for seeing through the course of this year an agenda that truly is restoring this country. you described it very well, mr. president, from the outset of this administration we have been rebuilding our military, putting the safety and security of the american people first. you've restored personal credibility on the world stage. we're standing with our allies. we're standing up to our enemies. but you promised economic renewal at home. you said we could make this economy great again. and you promised to roll back regulations. and you signed more bills rolling back federal red tape than any president in american history. have you unleashed american energy. you've spurred an optimism in this country that's setting records. but, you promised the american people in that campaign a year ago that you

would deliver historic tax cuts. and it would be a middle class miracle and in just a short period of time. that promise will be fulfilled. and i just -- i'm deeply humbled as your vice president to be able to be here. because of your leadership, mr. president, and because of the strong support of leadership in the congress of the united states, you're delivering on that middle class miracle. you've actually got the congress to do as you said, what they couldn't do with anwr for 40 years. you got congress to do with tax cuts for working families and american businesses what they haven't been able to do for 41 years. and you got congress to do what they couldn't do for seven years in repealing the individual mandate in obamacare. i know you would have me also acknowledge people around this table, mr. president. i want to thank the leaders in congress once again for their partnership in this. i want to thank your outstanding team, your

secretary of the treasury steven mnuchin. gary cohn. ivanka trump, legislative team. all the members of this cabinet who partnered to drive your vision forward over the past six months after you laid out that vision for tax reform. but, mostly, mr. president, i will end where i began and just tell you i want to thank you, mr. president. i want to thank you for speaking on behalf of and fighting every day for the forgotten men and women of america. because of your determination, because of your leadership, the forgotten men and women of america are forgotten no more and we are making america great again. >> thank you. >> thank you, mr. president, god bless you. >> thank you very much. i also want to thank all of the members of the cabinet and i think we have a fantastic team. and next year we're going to go on to really some amazing

things. we're going to -- we're making ourselves very strong again. right, general? >> we are, sir. >> he was not so happy that first week when i met him. he was saying it's really depleted. we are building it up rapidly and we will be at a level like never before. but the members of the cabinet, you have been outstanding. i like the message that nikki sent yesterday at the united nations for all of these nations that take our money and then they vote against us at the security council or they vote against us potentially at the assembly. they take hundreds of millions of dollars and even billions of dollars and then they vote against us. well, we are watching those votes. let them vote against us. we will save a lot. we don't care. this isn't like it used to be, where they could vote against you and then you pay them hundreds of millions of dollars and nobody knows what they are doing. nikki, that was the right message that you and i agreed to be sent yesterday. i have had a lot of good comment on it. believe me. people are tired of the united states, the people that live here, our great

citizens that love this country. they are tired of this country being taken advantage of. and we're not going to be taken advantage of any longer. thank you very much. thank you all very much. thank you, i appreciate it. >> mr. president who will the tax plan cost you a fortune, mr. president? >> thank you very much, everybody. thank you. >> thanks, everyone. >> harris: the president in the cabinet room with what he said is likely his final meeting with his cabinet but he says you never know. things can happen. but you saw him there in the last few words talking foreign policy and you say him kind of look off over his right shoulder past secretary of state rex tillerson whom we believe was seated at the end of the table with ambassador nikki haley with a cabinet position thanking her by simply saying nikki you and i made the right stipulation that we talked about yesterday with regard to the u.n. vote now on the president's decision about israel and recognizing jerusalem as its official capital and moving eventually, it will take three or four years, our

embassy from tel aviv to jerusalem. the significance of that on the couch today we have colonel mike call waltz. and i want to get your thoughts just on that particular portion, because that's more of america first, which has been his message this week. >> and i was able to get a briefing from general mcmaster on the national security strategy and the other point that he was making there aside from making jerusalem the capital was yesterday ambassador haley put iran on notice again. in terms of their support for the houthi rebels, the launches they are making for rockets in the saudi arabia and all the other nefarious activity that's going on. >> harris: all right. i wanted to start there because that's where he ended. obviously, if i draw your attention to the small box on the lower corner right of your screen, that is the house. they have to do a bit of a revote because they broke some rules in the senate with some language so now they are going to revote on the tax bill. no one is worried that this thing won't pass for a second time in the house. but they have to redebate as we saw them do yesterday before they voted. and the minute that this

wraps up, then we will see the revote. and the president talked about having people over to the white house. the people's house to celebrate this a little bit later. and i caught him, katie, maybe firming up some talking points as the g.o.p. now has to sell this tax bill to the masses. >> katie: right, you had press secretary sarah sanders today tweeting out that the christmas present has almost been delivered to the american people in terms of tax reform. president trump during his remarks talked about the repeal of the estate tax, how it effects farmers. he talked about how the tax bill will go into place and start actually helping people in february because there will be a little bit of a period where things have to be implemented and put through before people actually start seeing it in their paychecks. he talked about the obamacare mandate and actually specifically said now that the obamacare mandate has been repealed. that means that obamacare has been repealed. and so republicans are not only going to be talking about tax reform in the next couple of months. they are also going to be talking about obamacare as well. and that will be coming up as a topic, i'm sure with

democrats. >> sandra: at year's end, jessica, the president is right to say talking about the critics of this bill saying will truly let this speak for itself. looking at the results of what we see happening in the economy, the growth that happens as a result of this bill, but, already, we have started to hear some major u.s. corporations come out and say they are excited about this. they are raising expectations as far as earnings. they say their hiring is going to go up in the new year. the excitement is out there. it's not just political. you're hearing that from u.s. businesses. >> katie: some of them. heard from mike bloomberg. trickle down, wages grow up from it yes, you are hearing that. you can't deny the optimism about the economy. you can't deny the dow. and that's what president trump said he was coming in to do. and that's what he has done. this certainly gives the republican as boost going into 2018 that they can say this got done. i agree that people see even a little bump in their

paychecks that's going to be exciting. but, we do know that the long-term look at this bill is not the same as what's going to happen in the next year. democrats and a lot of republicans who don't even like this bill because there are parts of this we don't enjoy. we talked about this before the defunding of the championshichip programand the y wealthy. 83% of the gains are going to go to the top 1% in the end. i know they are the biggest taxpayers but those are things dems will continue to run on. >> harris: i want to get the colonel back in here. some of the criticism for republicans across this whole landscape of getting tax reform passed is that they called it that you heard the president say i tried to tell them not to call it tax reform. it's tax cuts. i said use those words. >> i think it's worth remembering the title of the legislation is the tax cut and jobs act. you know, this is going to make american corporations competitive again around the world. it's also worth remembering. let's look at some of the corporate tax rates. china 25%, u.k. 19%. ireland 12%. we are now going to be

competitive and i think in 2018 when people are around their kitchen table saying yes, i got a tax cut, but, gee, my relatives who are partially employed or unemployed, now have jobs. i think that's going to make a huge difference and the pass through taxes i can tell you the pass through piece for llc and small business owners i'm a small business owner, i'm excited and i'm going to be hiring folks next year. >> sandra: newt gingrich earlier this morning was tying this in to the national security speech that the president gave this week as well. saying that the two are not disconnected. >> economic security is national security. yeah. >> katie: if you read the national security strategy that the white house put out earlier this week they specifically discussed economic stability essential solid essential to fighting foreign adversaries whether it's overseas in the battlefield or whether it's in the cyber warfare arena. so that is a definite solidified part of this administration's national security strategy. >> jesse: it has been a

plank of the national security strategy for decades. obviously the president is more. >> harris: jess da pointed this out. he said i didn't want him talking about this until this thing passed in detail. he said anwr is a big deal. and that ties into that whole sort of independence, if you will, as you have a more global conversation about energy independence. >> like we were talking about. you know, we are going to now eclipse saudi arabia as an exporter. that changes the dynamics in the middle east. >> harris: wow, exciting words today as we watch the screen. they are debating yet again the house floor. they are debating it again the final version of the tax bill. there was some and a half fews that they have t snafus thy have to fix. susan collins reports that she got duped in her decision to vote for tax reform are sexist. whether she is right? or is it wrong for her to play the gender card on this? stay close. keyboard clacking ]

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♪ >> sandra: the house is right now debating the final version of this tax bill. as you know, it already passed in the house and then went onto the senate. they passed it in the senate but there was some problems there so there is now -- there is now a vote again in the house. today we are expecting that to begin at any moment. when that happens, we will let you know. >> one or two republican votes on the tax reform bill was senator susan collins. thmaine republican throwing her support behind the bill after getting key concessions. many in the media say she was being tricked. >> i would keep a very close eye on susan collins who is under tremendous pressure. remember, she was sold a bill of goods, some of us thought, by mitch mcconnell in promising these two pieces of legislation that were supposed to ameal rate the effects of the individual mandate. >> it is a question whether republicans are giving her

what they promised her in exchange for her votes. >> here's the question. is she getting played? >> sandra: collins pit back telling reporters i believe the coverage has been unbelievably sexist. and i can't believe that the press would have treated another senator with 20 years of experience as they have treated me. they vig in order everything i have gotten and written story after story how i'm duped. how am i duped when all of your amendments get accepted? katie? i'm going to you on this. >> katie: yeah, susan collins was a wild card there for a while. they weren't sure if this was going to pass in the senate because of the opposition she had including to president trump's desire to have the corporate tax rate lowered to the number that he wanted. so, this idea that she didn't know what was in it before she passed it, especially when she was offering amendments as she mentioned just doesn't really make sense and why the media, especially the news anchors of those other networks would take that line. >> sandra: gender card. do you agree with that. >> katie: i don't like to

pull the gender card much. they might be saying this about someone else too who got duped if they thought. >> harris: they didn't say that about bob corker. corker over the weekend was saying i don't know how that language got in there that seemed to enrich him. >> katie: sounds like he did get duped them, right? >> harris: i wouldn't play the gender card either. i would just play the facts card. >> people want their representatives to get stuff done, period. the media can't have it both ways. you can't criticize members of congress for being in their identical pillboxes and throwing grenades and getting nothing done but criticize them for compromising when they need to get legislation passed. we have to get it passed and compromise is a dirty word. she got a lot of what she wanted. she gave on some things and now we have fantastic tax bill. >> sandra: what about you, jessica. >> jessica: we know i'm a fan of the gender card. jeff flake said he was getting daca protection which ended up not getting true. you will get to sit at the

table and talk about it and was discussed in exactly the same way. >> harris: you might call that a dupe. >> >> jessica: susan collins did get her amendments. she is very clear about that. democrats look to susan collins as a hero because of what she did during the healthcare debate she ended up killing that bill. the fact that she then signed something or voted for something that took away the individual mandate i think is where the frustration is more than they think because she is a woman she got duped and they took advantage of her for that i don't actually see this one as a sexist trip if we want radio-to-revisit issues women are spoken to and differently than it men there are many. >> harris: you are will hold on to that gender card for now? >> she got deductions for large medical expenses. she got the cap for the salt taxes. she got tax exemptions for certain types of hospitals. she got a lot of what she needed in there. and i just don't, you know. >> harris: so in the mainstream media, you have a conservative who is doing

things that turn out to be good and she doesn't get credit. >> katie: that's not gender. there is a double standard. >> she didn't cry while hearing from a daca. >> harris: what? >> that she didn't cry while hearing from not a daca but someone who was losing their obamacare and hairs airlines she didn't have the matching emotion. that's like telling women well you don't smile enough. >> katie: which happens all the time. >> harris: got a lot done. >> sandra: i want to go in here and go to capitol hill for a second. as you can see, voting has begun. this is the amended bill. it came back from the senate. the house is now revoting on that. it is expected to pass. when it does, we will let you know. obviously, after, this it goes to the president's desk to be signed. so we are watching the vote. it's happening right now. we will let you know when it concludes. michael waltz. >> i'm excited again. small business owner, i'm ready to hire.

i have my cfo has built in the lower tax rate for both corporation and llc and we figured out how many jobs we are going to create. >> katie: that is such a key point because i think the entire economy is doing that as well. >> that's right. >> harris: you heard the president say today and again, republicans are kind of getting chided. it's like throwing a little shade but light shade, i guess, let me give guys the better talking points on this in terms of americans and where they can feel. this like you are excited about this. but the president drove home, i think better than the g.o.p. as a whole did, this idea that farms were really getting hit. farm owners were having to sell for a lot less than their property was worth because of that estate tax. well, that actually takes some of the venom out of the hands of democrats who were throwing just all sorts of fire about the estate tax and who it benefited and the president said no, these were struggling farms giving the example as you are now of how you will use this. >> these are electricians, these are your franchise

owners. these are your small mom and pop retail chops. >> jessica: it is also hedge fund managers. >> not in this. >> harris: top to bottom. >> jessica: i understand that. i completely disagree with you the president 100 percent messages better than the g.o.p. >> harris: it's true, right? >> jessica: his tax breaks. >> katie: why does it matter. >> jessica: because of he lies about that. [talking at the same time] >> jessica: he wouldn't be getting a break. >> harris: understand about the left job engine driver. 67 number we have been seeing. 66 for hiring. >> katie: if you are giving a tax break to wealthy people and also giving a tax break to the middle class. >> harris: that is what reagan did. >> katie: not only just giving it to the middle class. we can give one to everyone.

this bill doesn't exactly do that back to your point about the estate tax. the estate tax is a fancy nice way to say death tax. it's taking your money after have you paid your entire life to the government after you die, rather than allowing to you pass it on to your children whether you are a hedge fund manager or farmer. it shouldn't matter which one you are. >> harris: bigger deal when you are a farmer because a lot of times those are family businesses. not to say that hedge funds managers don't pass along the family business. but we know farming. >> katie: ask abou the clintons about hedge fund managers they know all about it. >> people are look at their 401(k) and seeing it go up and up and up and it's across the board. >> harris: not having to side arm anymore. >> jessica: some of these cuts do get phased out over time. >> sure and so did bush tax cuts. >> jessica: argue. that's being made which is that americans are just going to be across the board better off from this is not when you look at the 10-year

forecast. we know obviously and listen i'm a democrat. i don't wake up in cold sweats about the deficit. we know there are a lot of republicans who are concerned about that. >> that's a national security issue, too. >> harris: you are concerned about it. >> i am concerned about it. >> jessica: we are losing 330 billion from the repeal of the obamacare individual mandate in revenues. we will have to make that up somewhere else. i'm thrilled that you are hiring more. >> harris: you know what? can i just say it's a little disingenuous and i have looked at the sun setting that you are talking about of certain of the individual tax cuts, right? so, it's a little disingenuous to say oh they are just going to go away. you know, democrats have an opportunity down the road to vote with republicans to make sure that we extend those tax cuts. >> >> jessica: i imagine that we will. >> harris: you have to extend the tax cuts. >> which extends bush cuts. >> >> jessica: there is not a natural reflexive hatred for a tax cut that lives in liberals. >> katie: yes there is.

>> jessica: at least not in this liberal. i'm getting a tax cut. that's great. when you have the sun setting, when you have the breaks the death tax maybe not the alternative minimum tax for instance that is going to benefit people like the trump family. those are things when you ran on a platform, a populist platform that you are going to be making sure that the lower and 34eu8gdz classes are better off. why did you cut the corporate tax rate so dramatically and not the individual to that level? >> it's not growth plan. >> katie: you don't have to keep a corporate tax rate high in order to benefit the middle class. >> jessica: why couldn't have you done a higher individual cut and lower the corporate rate. democrats aren't opposed to consult the corporate rate maybe not going down to where it was. why wasn't the individual rate. let people at the moment the cut goes into place actually control that money themselves instead of waiting for a trickle down miracle. >> sandra: i wanted to update everybody the voting is underway in the house right now. voting on the senate bill that went back to the house after it passed yesterday. we are waiting for this to come in. see the tally there, 98

yeas, 91 nos right now. just to remind everybody, 12 house g.o.p. lawmakers voted against this bill in the original vote. it is largely expected to pass again. remember, those are republicans from those high tax states that object to this bill. but, right now, it's on its way to passing. not yet but it does go to the president's desk after this. and this would be the conclusion of a big week, michael waltz. >> huge week. i want to go back to jessica's point on and that's a question, i think a fair question a lot of people are asking. why did we not just lower the individual tax rates? why did we lower the corporate as well? that is to go back to my original point why it is a tax cut and jobs act. and so, you know, look, that's fine if we all pay lower taxes, i don't want to give the government any more of my own personal money. but the way small businesses and corporations are going to create growth and create jobs is by lowering the rate, making them competitive globally. secondly, on your point on

the deficit. i worry about the deficit, too. in the future, we are going to have to borrow almost every dollar that we spend from the defense department and who are we borrowing it from? the majority from the chinese. that scares me. that concerns me. at the same time, you know, really what is the white elephants in the room that is going to affect our deficit? it's healthcare explosion. the explosion of costs. >> jessica: and entitlements. >> big elephants in the room. >> jessica: very strong case to be made when you look at all the old footage from paul ryan when he first got to the house and miraculously he looks so young when he got there he has been wanting this his entire career. you see a lot of articles that are saying that this is with the acceptance of the increase in the deficit, this is just a cover for the entitlement reform that the republicans have wanted. and programs like social security and medicare are programs that are not -- they are not a gift. we paid into them. we are owed that when we get to that age. i believe we shouldable allowed to reject our social

security benefits and put that back into the pot if we're wealthy enough to take care of ourselves. >> katie: voluntarily? >> jessica: if i have enough money i should be able to donate that. >> katie: donate that to private companies or charity companies retirement work. >> jessica: we see that differently. you shouldn't have to take the money. it should be your choice to put it back. >> there is a lot of ways to reform it. >> katie: can you write a check to the treasury at any time. you don't have to wait every two weeks. can you write a check back to the treasury at any point. >> i just want -- i don't think a lot of folks realize 70% of our federal budget is untouchable. nondiscretionary portion that's what is ballooning our debt, medicare, medicaid and social security. any lawmaker who steps up to try to fix it, reform it, make it better just gets pillarried from both sides. we need some political courage in our leadership. and step up and fix it.

>> katie: spending side of this, too, is a big question. the white house and congress republicans in congress are banking on the economic growth that they claim is going to come out of this. now, they are saying 3%. the president has said as much as 6%, 7%. we will see where it flies. >> harris: bring our attention back to what is playing on the left of the screen. i love listening to you guys though. this is great conversation. i look forward to going into the new year with more of this because, you know that entitlements are something that there will be a fight over at the beginning of the year, right? that third rail that nobody has wanted to step on. we know paul ryan has and others have said that that is a place where they want to go from the beginning of his career speaker ryan with entitlements. i just want to draw everybody's attention back to what we're looking at. people at home just tuned in why in the heck are they revoting in the house. it's because they missed a couple things for the senate side. they got the senate version fixed, sent back to the

house. they will vote on that now. we have no reason to believe it won't pass a second time. but they did do some debate to which we all kind of laughed and said y'all debated yesterday. republicans can take several seats. let the democrats say whatever they want. it played out for the most part very quickly. and now, after that short, short debate, they are voting and then what's next? the president is holding an event later at the people's house, the white house, and we got to hear a little bit what i would call juicier talking points to take to the masses today. >> sure. i think what needs to happen now is republicans have got to sell this. hairs airlines why do they need to sell it if it's so great though? >> jessica: because it's not. >> harris: jessica, i'm asking colonel waltz. >> people like her have talking points. >> sandra: there has been a lot of mistruths about the bill put out by the media. therefore, when polled people respond to those

mistruths in the media. that's his response to that. but, democrats continue to rale on this saying that it's gone through too fast. to the point where people don't even know what's in it. sound familiar? >> right. >> sandra: interesting that was the narrative when democrats were trying to push through obamacare. >> yeah. you know, i think it's easy to say benefit the rich, going to hurt the poor. if you look at the reagan -- if you look at the reagan tax cuts they were equally kind of dubious in their popularity until people saw the benefit come true and, like i said, if they are sitting around their kitchen table and they are seeing more money in their pockets. less money to the government. friends and family getting hired, small businesses where they, you know, in their communities that are growing, and month after month after month the 401(k) and retirement plan growing, we are in good shape. indicate. >> sandra: i want to bring our viewers along for the ride. we are watching receipt vote in the house.

minor changes that were made coming from the senate. the revote is happening right now. as you can see the countdown clock there only a couple minutes left in this vote. the bill passed in the house yesterday by 227-203. as i mentioned 12 republicans voted against that like the pete king from new york. the most high taxed states. the senate cleared the law in the wee hours of the morning around 1:45 this morning by 51 to 48 vote. no yeses from democrats. if this passes, which it is expected to, in the next couple of minutes, that means it's off to the president's desk. exactly when that happens, we do not know. but the president and the republicans are expected to take a victory lap as harris just mentioned at the white house a little bit later today. the president has called this an important day, historic victory for the american people as you can see. the countdown clock just over a minute left. we'll watch this vote but, again, expected to pass and it passed yesterday in the house. 227 to 203.

>> harris: yeah. so you heard the president talking about doubling the child tax credit, or take home pay as you mentioned colonel waltz. the individual mandate is being repealed which means obamacare is being repealed. i fully expect, katie, because you and i, we perked up when he said that. for that to have been the talking point that he was looking forward to, he said i didn't want to talk about it much until this thing passed, but i think we will hear that more and more. with his -- what he projects to be his final cabinet meeting just moments ago, so you saw that live. it's been a very lively hour here on outnumbered. a lot going on. you saw him though wrap up, talking about foreign policy and the border wall. but just to step back for a second, this is a huge moment in history that we thought that we would have seen in the wee hours of the morning as the senate was voting. we knew the revote was coming in the house. once this comes, it's done. and then it goes to the president's desk. and, you just take a beat here. because you haven't seen this sort of top-down tax

bracket cutting since ronald reagan. you haven't seen the sort of look at the tax code in general since the 1980s. and so this is more than just what we like to cloakially call the big deal. this is history making in america and really can set us up for change moving in an economy that's already cooking. >> katie: important to point out republicans are united on this. looking at massive legislation like this without much drama happening on the house floor right now is important. >> katie: not only a huge legislative victory historically for the american people. it is the first big legislative win for the president this year. he has had some battles with mitch mcconnell over the summer. he has been frustrated with the way the obamacare was brought up for vote and failed to get to his desk as a full repeal. this is his big first thing as president. it reveals that one of his campaign promises has been met and it allows him now to move on to bigger and better things. the white house has talked about going into an

infrastructure package as early as january. daca is now something that is being talked about as an immigration reform push that's going to come after the new year. now that this is behind them, not over in the sense that they are still going to have to talk about the meat of the bill. how it's going to benefit the american people. however, this now is behind them. the president has a good legislative win and the intensity from this will be rolled over into other projects. >> i think it is a little bit unfair to say this is the president's first big legislative win. >> katie: he has had a lot of smaller things but i mean a big legislative win. >> this is, i think, as harris was saying, this is historic. i mean, this is a mask win. but there have been other, a lot of things he is not getting credit for. important legislation for veterans that's shifting some of the v.a. over into the private sector. there is a national defense authorization act. there was a national security strategy. there was the first

authorization for nafta in nine years. -- nasa in years. this notion that he has gotten nothing done because of obamacare. >> katie: i didn't say nothing. it will is very important. he has had a lot of legislative victories. the house has passed 100 bills through this year and gotten to the president's desk. when it comes to effecting every single american this is the big deal. >> jessica: nothing matters to the average person more than a tax cut or the promise of one. so i think that in this way this will be the sell point for the republicans in the 2018 election. and if people are seeing more money in their pay they can. they have hired more. >> 2018 and 2022. >> jessica: that's the first marker going on here. the ballot is favoring democrats heavily. part of that is the way history works. some of that is issues with the popularity of the president and party overall. this certainly helps them in their case.

and democrats are going to have to figure out how to message around that to say okay, well, you may be seeing a bump in your paycheck, but blah, blah, blah, blah, blah. that gets more difficult because it's the economy, stupid, in every single election except for in alabama. democrats are going to have to be very careful. >> growth in the economy. why keep going back to both growth and tax cuts. it's both? that together. >> jessica: it's so difficult for the party that has been in power to hold on no matter what is going on in that way. >> sure. >> jessica: this might not be as much as a referendum on the g.o.p. platform. democrats lost over 1,000 seats in the obama area which was a referendum how the policies were working. we were talking about this obama himself hugely popular, policies not as much. they don't sound as good coming out of his mouth. >> katie: issue with the 2018 election too the districts red for trump and blue for obama in 2012 are those districts going to

hold for trump? because they voted for him based on solely economic issues coming in and saying i'm going to bring your jobs back. we're not going to shut down your coal mines anymore. we are going to deregulate the country. to your point of other big things happening, i think that the fact that the trump administration has taken 22 federal regulations off the books for every one that is implemented is massive. it's huge. it's dead weight. that pulls on business and that has been completely under covers. >> sandra: bring your attention to the screen now because we are getting close to seeing this vote happen. historic moment where it may be passing the house yet again after it passed in the house yesterday by 227 to 203 vote. look at that, the tally there 222 to 192. at this moment. 222 yeses. to 194 nos. tiny numbers there. the house is almost concluding this revote on the amended senate version of this bill that just got kicked back this morning. after this, if it passes,

which it looks like it is about to, it is expected to, it goes to the president's desk. the senate, you remember, cleared the bill about 1:45 this morning in 41 to 48 -- 51 8 vote. the bill passage event is going to be happening in the 3:00 hour at the white house. this is not a signing event. very important to make that distinction as the bill will still need to be enrolled and that will happen at a later date she said. we will keep you posted on the details as they are confirmed. 224 to 199. building the suspense now. >> i will be interested to see if it's the exact same vote. if anybody switches their vote. feedback overnight. >> sandra: to be clear the hurdle they had to cross in order to have enough votes to pass they have met that i cannot tell you that it has indeed happened until that vote is closed. that is what we are waiting on right now. >> that's what i'm interested to see. it's clear this is going to pass. it's going to happen if

anybody particularly in democratic districts that rupp for grabs, if they flip over. >> jessica: there are 18, to your point there are 18 sitting in districts that went for hillary clinton and those are our prime targets. the darrell issas of the world are watching their back. >> sandra: there is speaker of the house paul ryan, you can see him there expect to hear from him as he has the gavel in his hand and there it is. the vote is closed and. >> jessica: oh my god, it's the went othe end of the world. >> sandra: passed again in we vote. slightly amended version coming from the senate. suspend the rules and pass hr 1159 as amended on which the yeas and nays are ordered. the clerk title of the built. >> hr 1159 a bill to provide for continuing cooperation between the national air nautics and space station administration and space agency and for other purposes. >> sandra: all right. we're going to pause for one moment to let our fox

stations join us. >> sandra: thank you for joining us, this is house vote on the g.o.p. tax bill. the bill has just passed the house. it passed the senate early this morning and it's now it's onto the president's desk. let's bring in fox news correspondent peter doocy who is standing by. we have been closely watching this vote. it has now happened and it has concluded and it has passed. peter? >> sandra, we have been asking republicans on their way in about this second vote in two days. the redo, take two for tax cuts essentially, and they are all in very good spirits. they do not see the fact that they had to redo it because of some technicalities that were flagged by democrat in the senate as a bad thing. they don't think that it takes away from what they are considering an historic transformation of the tax code. democrats on the other hand, nancy pelosi and democratic caucus hitting the republican party for not reaching out to democrats in a meaningful way to try to

come up with a provision for this tax. also they are saying the fact that they made a mistake that violated the senate budget rules shows that they probably should not have had a vote on taxes in the first place. that's the democratic perspective. we do expect to is a start seeing members. there is one so far. they do all normally come on down here. and then a little bit later this afternoon you can see we have buses already here in front of the united states capitol complex, these are going to ferry lawmakers from the house and the senate, republicans only, over to the white house for a celebration with the president. we don't know yet when the president is going to sign the legislation and make it a law. there are some benefits to waiting until the new year that republicans are looking at. they might be able to delay some cuts to medicaid if they do that. but, republicans in very high spirits, democrats not moving onto the next fight yet. they are still going after the party in power for this second vote that, again,

they were not able to stop. sandra? >> sandra: all right, peter doocy. thank you very much. the house voting to pass the g.o.p. tax bill. i should say the final bill as this is the second time the house has voted on that the president has called this an historic day. an important day for the american people. and this coming after the senate passed this bill earlier this morning. it now goes to the president's desk. a big day indeed. please stay tuned to fox news channel and this fox station for continuing coverage of this big story. i'm sandra smith in new york. ♪ >> sandra: all right, there there you have it -- and she got a totally fab replacement wardrobe at bloomingdale's. mary was inspired to start her own fashion line, exclusively for little lambs.

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