the stocks a way to go. david: that's it for forbes on fox. everybody have a very merry christmas, thank you for watching, keep is here the number one business block continues with trish regan and cashin' in. trish: you've no doubt heard about the tax cuts and the bill, but probably not about the surprises inside. we've discovered the good and bad. welcome to cashin' in this week. our crew, great to see you all, and we'll start with you, what do you think is the biggest, biggest price surprise here for the american people? good or bad? >> i think that 80% of the folks get a tax cut and that's the good news and may be surprising to people out there. little things people are going to get upset about. if you sell your houses pay more taxes than other ways and at work, transportation goes away,

the deduction goes away. small things that won't be there that people rely on. one thing that i think is critical that they've missed, they've kept the carried interest, and benefits the hedge fund managers, and they're paid as if they're investing money, that's not fair, that's got to change. trish: i'm glad you brought that up. this is something the president promised to address and i think we have some sound of here from the campaign trail talking how he would address this inequity. >> as part of this reform, we'll limb nate the carried interest deduction, well-known deduction, and other special interest loopholes that have been so good for wall street invests and for people like me, but unfair to american workers. trish: gary, i want to clarify something because a lot of you get a little concerned about this and afraid that perhaps it

would affect their investments. what they need to clarify here, we're not talking capital gains for everyone, we're talking a very small sector of the financial community that basically calls their fees, which is income, their labor, investment in order to get around paying the full tax rate. so, as i often say, you're now in a situation, gary, where a new york city cop under this new plan, will pay 27% in federal income taxes, and yet, steve schwartzman making $425 million a year pays 20%. something wrong with that. what's going on? >> well, looks like there's still some feet sitting in the swamp right now. this is an absolute big disappointment. i hate loopholes for anybody, and you can't sit here and tell people, and you said it best, how do you tell police officers in new york city that they're protecting lives they're going to pay a higher tax rate than

people sitting behind the desk and trading and making oodles and oodles of money, it's wrong, not fair and a heck of a selling and talking point for the other side. trish: if you put a dollar in the market and make money on it, the dollar you about ut in, you should get a lower risk, because they're taking a risk. but they're not taking the risk, they're managing money. as though i said to you, jessica, i want to find the next facebook, let me give you $1,000 and you can invest it the next five years and sure, i'll put that $1,000 to work, say you find that next facebook, and make a million dollars, and then you take the fee. 20% and somehow you get the benefit of the capital gains. >> no, no, i get benefit of the capital gains. trish: unless you put a dollar to work, you shouldn't. >> i'm glad you played the sound there, that's certainly one of the big promises that he would

personally pay a lot more. we know that people who have companies set up the way that president trump does aren't going to the way the that the pass-through taxes are going to work and the real estate skiens are going to-- how did this get structured this way? i'm going to make better than i thought. >> the mandate with obamacare and something that susan collins said she wouldn't allow and she did. and this is i think it's incredibly big deal. trish: let me jump in, by the way, let's not forgets there are some good things in here, right, rachel? there are some very good things in here. we can't have the highest corporate tax rate in the world. how are we ever going to be competitive? it's bringing it more in line with where it should be. we have the potential of bringing trillions into the country from overseas and i tell you one thing, the market likes

it. >> the market likes it and i think that families are going to like it. i think in the end, we have a tax bill where only republicans voted for it, zero democrats did, and we have republicans in power at all levels of government and so, the republicans are going to be able to own the success of this because i believe in the end we already have a great and growing economy and this is going to be rocket fuel, as president donald trump said, to this economy. republicans are going to be able to own it and going to be able to prove this sort of community organized, european model of running the government the way the obama administration did led to very lackluster growth. this is wait to grow an economy and when you do, you help families. i do also have some things to quibble with. i'm extremely disappointed at the loophole, sorry, gary, closed in puerto rico. this essentially just raises taxes on the island and it's going to push manufactured off the island. >> agreed. >> we should not kick americans while they're down and we have-- we know that we don't want them

to be dependent, we want them to be prosperous, they're americans and i think this is a big mistake, but it can be fixed and we can-- paul ryan and mitch mcconnell can join with democrats and make a fix and they should. trish: that's a good point there, absolutely. >> puerto rico-- >> and can i tell you-- >> about 81 billion dollars for that bill they were putting forward, a lot of money on the table for reconstruction and we have to make sure it's spent well, that's my quibble. >> that's always a danger. let's promote investment on the island. >> go ahead, gary. >> i want to take the other side of the mandate thing. there's about 8 million people that paid the penalty 'cause they didn't want the insurance. that's a tax and that was on lower income and middle income families, that are no longer going to have to pay that and let's not forget the biggest part of this, $1.5 trillion is staying in the economy and not going into the hands of the inefficient, ineffective

government. and if there's anything this economy needs is more of its capital and more of its money that's going to boost economic growth in the longer term and hoe they'll do more as they move forward. >> trish, can i add one thing to this. trish: the sure. >> the criticism from bernie sanders and elizabeth warren, that this tax reform is a heist, highway robbery and they're stealing-- it really indicates where democrats are. they think their money belongs-- that your money belongs to the government and when they get-- when republicans give you back more of your money, they see that as theft. it's not their money. >> i disagree with you and you know i'm not bernie sanders accolade here, but when you look at how much money is going back into americans' pockets, certainly in the first year because we know the bulk of the changes come next year which is something that paul ryan was not clear about, acting as if in february you'd get the full strength of your cut. but somewhere between 28 ton $50, act being like it's the

second coming and lower income and middle income americans are suddenly wealthy and these tax cuts-- >> the bottom line-- >> we want to be competitive. we need america to be competitive. if we're going to grow wages in the middle class we need to be as competitive as possible. not everyone is always happy. i think they could have saved $180 billion by closing that loophole over the next ten years and maybe they still can. maybe this is just the beginning. let's hope. >> right. >> coming up, think the russia probe is coming to an end? well, take a seat, some say it could last another year. what would that mean for president trump and his agenda in the new year?

e. >> i hope you're not tired of the trump russia investigation because it may be just getting started here. a report says it could drag on another year. if that happens, what's it going to do to the president's pro growth agenda? gerri, will it have an effect? >> this puts everything on hold. i'll tell you why, the democrats are going to season every headline and drag it out of the spotlight and talk about it incessantly and we're going over and over and over this stuff. it's going to be nonsense and hard to get anything done. i fear for the next steps in the agenda. trish: i don't know, i look at tax reform and it's successful. >> we can quibble about things on the edges, but the reality, they were able to get that done. i wonder, as we see the economy gain steam and americans become happier and happier about that, gerri, if that will give a path

forward to ignore the noise. let the democrats go on and on and on. >> fingers crossed, my friend, what i say. >> and keep doing what you're doing. >> hope springs eternal and i think what's interesting, we saw the government fans this week as well. and we didn't expect that to happen right away. that's good news for how much the republicans are able to get done. we're able to get some wind at their back and i think february is when the new withholding charts kick in and we start seeing the money in our paychecks. every tax reform that comes in is unpopular until people see the results. we'll see them early, that could help, but the steady drop, drop of bad news of the democrats are not going to be easy to overcome. >> you know they'll want to exploit it and keep digging. >> there are people on both sides of the aisle who have full faith of the mueller investigation and some people on this panel may agree with that. this will be a drag on the president's agenda and i think

he should reconsider taking up welfare as the next step and go to infrastructure. that's something the democrats would have harder of a time to say they have an interest in. but after entitlements and the wealthy-- >> the main thing, political advice, and-- >> it might actually, it is hard for the democrats to go against the very thing they've been asking for forever and that is infrastructure. politically, would that be a sound move to put that one next, rachel? >> yeah, i absolutely think that it should be next move and jessica, oddly giving the good advice on that. i don't think that we should put often titlement reform. she's right about the sequencing of it. the drip, drip, drip of the mueller investigation, the russia probe may not be as bad for trump as we think. i think it may be bad for the

democrats. right now the house and the senate investigations into this. they're thinking about declassifying a lot of things that happened at the doj and fbi, which i think may actually be, perhaps, one of the biggest scandals in modern political history where we see that the doj, the fbi, used the justice system to both go soft glove on hillary clinton, on her e-mail scandal so she wouldn't get hurt and then they had to quote, unquote, insurance policy as we saw from peter strzok's e-mails or text messages uncovered that they were trying to undermine or undo the election, should donald trump win, which he did. this is really bad news, if this was used, if the doj was used in this way. >> this could be watergate-- >> i don't think this is going to be in your favor. >> gary. >> i have news for you, more important than everything is next november there is a gargantuan election coming up that if the democrats take over,

they are going to try and impeach the president so everything the republicans do now are based on that. that's why i don't think they're going after entitlements, they're going to be bashed over it. they may go after infrastructure because the dems might be possibly on board. they're going to have to tiptoe around. i'm not worried about russia unless there's an indictment of consequence, it's unknown at this point in time in time. >> i think that michael flynn is a consequential character. >> right now there's a small submarine session of democrats talking impeachment. nancy pelosi and chuck schumer are clear that's not where we should be going and frankly we don't want president pence, i wouldn't be as afraid of that. trish: i would point out if you get president pence, you would be in the same economic line of thinking, so when we talk about the president's agenda, at least for the economy and making sure we're all gainfully employed in

the future, so far so good and i don't see that there's a whole lot that can derail that, i really don't so long as the economy keeps moving upwards of 3%. america getting ready to take a hike. nearly 20 states mandating a minimum wage hike in 2018, will it mandate fewer jobs in 2018. . an insulin that fits my schedule is key. ♪ tresiba® ready ♪ (announcer) tresiba® is used to control high blood sugar in adults with diabetes. don't use tresiba® to treat diabetic ketoacidosis, during episodes of low blood sugar, or if you are allergic to any of its ingredients. don't share needles or insulin pens. don't reuse needles. the most common side effect is low blood sugar, which may cause dizziness, swtiting, confusion, and headache. check your blood sugar. low blood sugar can be serious and may be life-threatening. injection site reactions may occur. tell your prescriber about all medicines you take and all your medical conditions. taking tzds with insulins like tresiba® may cause serious side effects like heart failure.

your insulin dose shouldn't be changed without asking your prescriber. get medical help right away if you have trouble breathing, fast heartbeat, extreme drowsiness, swelling of your face, tongue, orhrhroat, dizziness, or confusion. ask your health care provider if you're tresiba® ready. covered by most insurance and medicare plans. ♪ tresiba® ready ♪ >> getting ready to ring in the new year with taxes. set to raise the

>> live from america's news headquarters in washington, merry christmas eve-eve. i'm leland vittert. no rest for the unrest in the

holy land. right ahead of the christmas holiday. palestinian protesters, some dressed as santa, clashing with israeli forces in bethlehem amid the fallout from president trump's recognition of jeruselem as israel's capital. a massive blaze, killing one animal and four others missing and several workers were treated as smoke inhalation as a fire tore through a children's petting zone. ap the cause is under investigation. i'm leland vittert. we'll see you at the top of the hour with jillian turner with a lot more on the decision to send this to the ukraine. now back to cashin' in. . trish: this could be the rage in 2018 because 19 states and d.c. are mandating that companies raise minimum wages in the new

year. gary, you say that will actually decrease jobs. walk us through your thinking. >> well, for every action there's an equal and opposite reaction. when you mandate cost of businesses, they're going to do a couple of things. a, there's going to be less hours, b, there will be less people working or go into robotics, by the way we're seeing that happen in many cities. the good news is a lot of these increases are modest, but in some cities, they're more than others. and that is 100% affecting jobs. places like seattle, that have moved up to $15 and it's definitely hurt. >> you know, gerri, we're struggling with something in the economy, that's basically capital versus labor equation. i think in recent years, capital has been disproportionately rewarded, compared to labor. and i really think for us to have a strong middle class in this country, we need to also reward labor, but i don't want the government saying you have to. i mean, how do we--

how do we do this naturally, organically, in a market-driven way? >> can i tell you, it's already happening ap because of tax reform. companies are saying, hey, we're going to give money to employees and raise to $15 an hour because we know we're getting benefits from tax reform and the economy is going to grow and get bigger and we're going to do better and share with employees. that's the way. let the companies decide, because they know, a, when they can afford it and when it makes sense. i think we're coming on a year where we will have really good wage growth. we don't need the laws from states and cities and it's a mistake to do it that way. trish: i hope you're right and all indications are headed in a positive direction. >> amen. >> jessica, the other side here, there are some and you know, the companies that make security scanners, he says he's not going

to give higher wages and he wants to do stock buybacks and he doesn't think it will translate into better-- more jobs and better wages. >> and there are ceo's saying that, gary cohn saying, hey, you're going to put this back into your workers and raise wages and hire more people and they all sat there, not really. mike bloomberg has been talking about it and called this tax reform plan a fantasy land. i think that we will see some wage growth, but on the minimum wage front, i think the fight for 15 while a valiant effort is not a country wide effort, but some democrats put up $12 an hour as a minimum and think it's a living wage. and if you can afford it go up to 15. and we have to make sure-- >> and doing things and the-- >> know that this really hurts

americans. >> and $12 an hour in new york city is a lot dinner-- different than in $12 in wisconsin. >> so, new york-- ments you would think, jessica, that the businesses would be deciding that and the workers would be deciding that, that you would allow free markets to actually function. rachel. >> i agree with gary. you know, we shouldn't let government decide this. the market should decide this, but, list be, this is what happens when you can't separate morality and free markets and capitalism. they should go hand in hand and certainly employers have an obligation to their workers, a moral obligation. that being said, i don't think these wage increases under the trump muscular strong economy are going to have that big of an increase of a negative effect because the economy is growing, there's competition for wages-- for workers and wages are going up anyway. trish: good, good, good, we need the wages higher. coming up, there's one other

nugget in the tax reform we didn't tell you about earlier, it could make you slick profits in the new year. stay tuned.

>> welcome back, it's time for fox on the spot. rachel, let's start with your predictions. >> all right, russia conspiracy investigations into donald trump are not going at all the way dems hope. i think that the investigation into the doj will shock the american people and prove they were trying to influence the outcome. >> you think that the democrats are freaking out about the russian investigation. and wait until you see the tax reform. >> i want to respond to this, i think that the president will get a bump in the approval rating because of the tax bill. trish: gary. >> i think the first surprise for the first year, oil prices and oil stocks by the exchange traded fund for oil exploration. it's the xop.

i think it's a 15% move. trish: i think the market is headed higher in 2018. thank you for i think jo -- i'll see you on fbn, have a great weekend and a merry christma christmas! >> a christmas terror attack in america has been thwarted by the fbi. the main suspect, a former u.s. marine who pledged his allegiance in isis. >> plus, the president is breaking with tradition and sending arms to the ukraine. the russians and president trump put putin are not happy and will this silence critics who say he's too close. >> and a showdown, and a congressman who wants to find a solution, imagine that. ♪