so, i traded in my lederhosen for a kilt. ancestry has many paths to discovering your story. get started for free at ancestry.com. >> ed: good day and a fox news alert, president trump ringing in the new year and is mar-a-lago's art, by keeping eye on the protests in iran which is into the fifth day. brand-new hour of "america's news hq," i am ed henry. >> molly: and i am molly, happy new year's to everyone. antigovernment unrest in iran as protesters take to the streets for a fifth straight day. president trump speaking out on twitter, saying it is a time for change in iran. harvard law professor agrees. >> i think president trump has indicated that he will not stand behind the iran regime. the iran regime is failing. the people there are hungry despite the infusion of cash.

>> ed: and steve harrigan is live in west palm beach, florida. obviously, it is new year's, the president is headed back to washington come a lot on the plate. >> there has been a pattern throughout the ten day working vacation in southern california, the president sent treats, he played 18 holes, usually with some golf professionals, and that is exactly what happened today. the morning post concerning policy on iran. iran is failing at every level despite the terrible deal made with them with the obama administration. they have are hungry for food d freedom. debbie and lou to come a time for change. he did not stop with the iran, when i to pakistan same, the u.s. has given pakistan $33 billion over 15 years, all the u.s. has gone exchange was lies and deceit. a very muted response from pakistan. many people are wondering where this tweet came from, why now.

>> ed: steve harrigan, thank you. happy new year. >> molly: the u.s. from kim jong un, north korean leader, saying he is a button controlling nuclear weapons right on his desk. a newsday address to the nation, kim jong un saying his hundreds of new capabilities are reality, not a threat. former ambassador to the u.n., john bolton saying, that is a warning we should heed. >> we need a very careful calibration of what exactly the north's capabilities are. i think they made incredible advances in the past year, they are very close to crossing the finish line, but they haven't done it yet. >> molly: rich edson in his life. rich? >> good afternoon, molly, and it is annual new year's message, kim jong un seven is regime will build on north koreans 2017 advancement. he calls it a reality, the united states cannot begin to do a war against north korea, because of the range of his missiles for today,

president trump said, we will see. despite that, kim says he wants to calm tensions. he says, when it comes to north and south relations, we should lower the military tensions to create a peaceful environment. both the north and the south should make efforts. kim also says north and south korea should discuss north korean involvement in the 2018 winter olympics next month in south korea. despite the peaceful overtures, analyst say, war there is likelier. >> we are closer in my view to a nuclear war with north korea, and in that region then we have ever been, and i just do not see -- i do not see the opportunity to solve this diplomatically at this particular point. >> .trump administration for months pursue a pressure campaign, get countries to cut off north korea economically and force it to stop launching missiles and testing nuclear bombs.

the secretary of state rex tillerson says, the u.s. will talk to north korea only if kim changes that behavior. the summer, president trump exchanged threats with kim, and world leaders asked both sides to calm the rhetoric. the desire for peace is likely to get favor who continued to say that sanctioning his country is a good thing and want to pursue that to try to get north korea to change its behavior. analysts also say, this is an attempt for the calls for peace from north korea is an attempt to separate south korea and they want to negotiate for those of the united states, leading this pressure campaign to isolate north korea. then you want all of this, molly, much of it has been the u.n. security council, which has been repeatedly sanctioned north korea, although the united states have pushed for stronger against north korea, it has largely been block. >> molly: it is fascinating to hear kim jong un talk about a button on his desk that could

potentially launch nuclear weapons, but say, warm up relations and talk more diplomacy. meanwhile, he's also said, sending a delegation to the winter olympics. is that an olive branch to a broader audience, to the world audience? this could be an analyst dominic indication that sanctions are beginning to stink. especially when you consider what north korea is looking for here. it side of this is that it has eased nuclear weapons and missile technology to preserve its regime. the united states have made claims that this administration that the u.s. is not seeking regime change there. this is not something that the united states is looking to overthrow the kim jong un regime. china does not want that too. whether or not this is a sincere call to peace or whether this is just a way to try to appeal to those elements. leadership wants to have

discussions with north korea, and those in china and russia say, look, north korea wants to talk here, why don't we slow things down a little bit and continue launching missiles over to japan and doing what he always does in turning the other way and continue to develop its weapons program. >> molly: south korea has a new president, if the north and south get together, the first time we had these talks with the new leader to the south, how impactful could it be? certainly, any type of meeting, which has not happened yet, it would be quite a momentous occasion between the two. the united states and its way says it wants to do nuclearize the korean peninsula. the weapons are out of south korea. they want to get them out of north korea. the question, how much is north korea, it was the possibility of north korea every getting revved up their nuclear others have achieved nuclear weapons. back in 2006, and continued to

mature, and working on it icbm program. sincerity from the west, including south korea and japan, and the u.s. asian allies. how much would north korea seek to actually make a deal and whether in the past is taking western money and gone against everything. >> molly: wow, rich edson, thank you. extensive report, we appreciate it. >> ed: for more, let's bring in iraqi war veteran. chris, good to see you. i wonder what you make of that as rich reported, the u.s. does not necessary want regime change is the first option, but john bolton a couple days ago said, look to be more and more diplomacy is not going to work. you see the chinese ships bringing oil into the regime in north korea for example, the sanctions from the u.n., mockery is been made of that. how much more likely to be going to see a war?

>> i do not think so at this point. i think there's more options to be done. it's a winding staircase. is probably the most precarious foreign policy problem for the united states. the whole government and leadership team, it's a problem. i think there is more leverage to be achieved with china. the transition should be happening, and in the short ter term, the olympic opportunity, the big for the north and south this communication to ease tensions slightly, but the president is setting the right tone, we will not accept the things they are doing, we need to relent. >> ed: what are the other options? >> economic pressure in the region. china needs to tell him they cannot do those things. show -- i think kim jong un, if he does not have a bad haircut, it is mutually assured obstruction, he will not do anything, but the economic

pressure is the only option before we show and go from there. >> let's shift gears and talk about iran as well. we had the twin threats. north korea, iran, and republican senator lindsey graham was on the sunday morning talk show talking about these protests. >> president trump is tweeting very sympathetically to the iranian people, that he cannot tweet here. you have to lay out a plan, enough eyewear president trump, i would lay out a plan as to how to go against the regime. >> ed: lindsey graham has long said that 2009, when we saw the protests during the obama administration, so the protesters in iran said obama, obama. they wanted more leadership from the u.s., and they did not get it. what more can president trump do this time? >> continuing to endorse both types of moments to get them to the size and scope is doing the right thing, but ultimately, i think they will phase out the

iran deal and a new deal freezing more assets, the obama administration, they tried, but were not successful. essentially, we paid for a deal that did not work. they're still doing bad things. endorsing those revolutionary forces in protest forces and getting a new deal in place. >> ed: you make an important point. president trump campaigned against the iran nuclear deal, called it a disaster. he could do certified, but they have been careful not to pull the trigger on it. in reflection, two-part questio question, how absurd it wasn't for the last administration to give $150 billion to this regime in tehran when economic gains are not helping their own people. it essentially propping up that regime, and now, what is daca forward when lindsey graham says we need a plan? >> the first thing he can do is

empower them. we do things like encourage the social media on the ground level. i agree with senator graham but it will take some time, and i disagree slightly and as it iraq war veteran, we cannot have a flash to a war before exit those other options. putting more as it freezes in place, going back on some of those earlier commitments from the deal, and making a new deal. i think i could take a few months, but that is what the president's best options at this point. >> ed: returning to to washingn from florida. we appreciate your service, happy new year. >> molly: may be a new year for the deep freeze, it sticking around. went to weather in the pacific northwest per take a look. this is an ice storm lacking a our 245,000 people in washington state.

>> looking across the street, the wind picked up and all the weight of the ice was on the trees. finally just snapped half the tree off here. >> molly: in times square, they were dancing to stay warm last night. braving temperatures for 12 hours, so most folks. it was 10 degrees when midnight struck, making it the second coldest new years on record in new york. >> ed: i could tell you you were not there, it was cold with the wind we'll get there later. treble strata new jersey, a teenager is arrested after his parents and sister in a family friend were all shot dead under z. motive, and plus, ten people killed in a plane crash, five members of a family. what we're learning about the pilot, coming up, marijuana may be legal now in california but is it easy to get for people in l.a.?

why that city is off to a slow start. >> we have seen an increasing number of americans agree that it's time to regulate marijuana. to get out of the underground market. how people pay taxes on it more than any other product do i use a toothpaste that whitens my teeth or... ...one that's good for my teeth? now i don't have to choose! from crest 3d white comes new whitening therapy. it's our best whitening technology. plus, it has a fortifying formula to protect your enamel. crest. healthy, beautiful smiles for life.

>> ed: take a look at headlines, new jersey teenager in custody after three family members and a friend found shot to death just before midnight on new year's eve. the 16-year-old brother and grandfather were able to escape the bloodbath somehow for the gunmen with colorado law enforcement left the deputy dead, identified. he is iraq war veteran ranting against the sheriff and the deputies. by more than 100 rounds and the officers and killed by return fire. after police found a stash of semiautomatic weapons on new year's eve. security officer say coming he

was drunk and escorted to his room and they found the weapons. >> molly: costa rican officials looking and what because a plane crash on new year's eve. it happened in the northwest part of the country, ten american citizens, two crewmembers were on board. all of them were killed, and this was not the first deadly crash for that airline. laura ingle joins us in new york. >> looking into the safety record of nature air, airline which operates these private flights around costa rica, this is the second fatal incident, ten americans into local pilots died yesterday. it exploded after crashing into a wooded area near popular tourist beach just after takeoff. all on board, did not make it. an american and another passenger, after taking off as well. there were reports of strong

winds in the morning that forced to change the itinerary yesterday, but the flight continued on his flight plan. the pilot was the cousin of ex-president of costa rica and according to aviation officials, the aircraft passed a safety inspection, only a month ago. >> the plane from the accident has been authorized but a month ago. it was within the certification to operate as an airline. for a plane in this case, to be duly registered, it goes through and expection and functionality that permits operation such as those carrying up until death. >> we are also learning more about five of the victims who were all from the same family. a mother father and three sons who love to travel the world together according to published report, bruce and irene steinberg told friends that they are looking forward to taking their son william, zachary, and matthew on an adventure through costa rica. the family is also known for being very involved in

philanthropy and the jewish community. five other americans killed have not yet been identified. the state department issuing a statement confirming multiple u.s. citizens died in the crash but are not sharing additional information at this time. out of respect to the family print will have more as we get a. >> molly: thank you very much, laura ingle. >> ed: we have more news, coming up. hi, i'm joan lunden with a place for mom every day we hear from families who partnered with a senior living advisor from a place for mom to help find the perfect place for their mom or dad thank you so much for your assistance in helping us find a place. mom feels safe and comfortable and has met many wonderful residence and staffers. thank you for helping our family find our father a new home. we especially appreciate the information

about the va aid and attendance program. i feel i found the right place. a perfect fit. you were my angel and helped guide me every step of the way thank you. the senior living advisors at a place for mom partner with thousands of families every month, listening and offering local knowledge and advice to help find the best senior living communities across the country and it won't cost you a cent. this is a free service. call today. a place for mom. you know your family. we know senior living. together we'll make the right choice. i'm to help you park safelyball danin your garage.ring it's part of my new year's resolution: no more mayhem. making sure your car is pulled in far enough... but not too far. ♪

>> ed: supreme court justice john roberts using today to call for an evaluation of the judicial branch has allegations of sexual harassment. reports are not immune to those same problems and other workplaces. after california federal court judge abruptly retired following a "washington post" story detailing several accusations of sexual misconduct. b2 after tax reform into law, president trump is looking to hit the ground running for the second year in office, mr. trump is scheduled to meet with the g.o.p. leaders this week to plan the party's 2018 agenda. dirty mina, watched an examiner to get things off, supreme court

justice and tax reform, we have heard from leadership and the president, there could be there could be a better bipartisan effort. is that out of necessity? >> maybe not necessity, the biggest agenda item on the republican 2018 calendar is making sure they are not hammered in the midterm electio election. they will want to get something else done, maybe achieve a lot. the president wants to pass a big infrastructure bill, he's meeting with mitch mcconnell the democrats also support infrastructure. this might be the easiest to get done. big of a calculation, do they want to vote for something, which in most circumstances support, or do they continue with the line that they used in

the last 12 months, essentially that nothing that president trump and the republicans do is any good and they will oppose but there's a calculation that they would support this. >> molly: as they do work as an obstructionist, don't they run the risk as well decided nothing gets done and to be blamed for nothing getting done? >> then run that risk, that the calculation print they may well want to go into the midterm saying, the republican and have done something reasonable and they will infrastructure spending, which is very widely popular, we have supported it. we have opposed them on the tax bill that they obviously had done. they have to make that calculation. how much can they say with whatever the republicans do is unacceptable. how much can they say. maybe we should not go in being that obstructionist support something, which is probably

pretty popular. >> molly: you mentioned the president will be talking with republicans over the we can come acute republican speaking, ryan as well. members on monday of the white house staffing, their meeting with the big four. he democrat, chuck schumer, nancy pelosi. to perhaps work things out. what do you think could be accomplished in that meeting? isn't all about trading, getting the spending at least funded before the deadline to do so? is at about compromise? >> they're going to have to come back in january and do more spending and negotiation. this is up luminary today. if as we know, the president is going to be talking about his agenda this coming weekend, it's probable that the democrats will want to make sure that they are influencing to the extent that they can, and i would imagine there will be a trade-off. the democrats may be needed to

pass the infrastructure bill in the house, because the be quite a lot of republican conservatives who will look at this and think they will not want to spend on it. there will be a need for democratic votes, the problem with democratic votes, you can only get the bill more left wing, knocking out more conservative votes. the be a lot of horsetrading. >> molly: one thing they decided is what they want a lot of different things, it with horsetrading, something for the dreamers. they want this wrapped up and certainly, hopefully, even before march when things have to be wrapped up. is that a key where there is an impasse where pumpkins will not be willing to compromise? the president seemed to be digging in his feet on the things he wants regarding information. >> right, i think the democrats democrats -- this is the toughest for the democrats. they want immigration sorted out, and they know there's a deadline in march, and then the

program will no longer be operational. they really do not want to give the president a big victory of financing the border wall. they managed to avoid that in a temporary spending bill in the middle of last year. they managed to go through and put that bill through without any money to the wall. i think the president and the republicans probably have the hand on this, and they will be able to demand some money for the wall. otherwise, the democrats, nancy pelosi in particular, will not get what she wants for the dreamers. >> molly: heading into the midterm elections, it's time for the money and power to move seats, this may be time for republicans to get as much as they can get done before the blue wave ellis have predicted. what you think prioritizing and actually being able to what will they put first? >> first will come infrastructure. there is talk particular in the house by speaker ryan about

welfare reform, but frankly, mitch mcconnell is very skeptical about this. he only has a steep margin know that the alabama seat has been won by the democrats. it was tough enough with two seats. in social security is rolled up. something with food stamps, experiments in the state, maine, wisconsin prove that you can reduce spending without damaging or hurting needy people, but that is as opportunity for that. history shows the incumbent party loses the midterm elections, whatever points made in the lead of the "washington examiner"'s main story, three midterm elections since the civil war has the incumbent party avoided a beating. history is against them, and the president has historically high disapproval ratings. there is an uphill challenge to the republicans coming on.

>> molly: a lot of things to watch up until 2008, and all his policies, issues, the end question what does this mean for the midterm spirit will be fascinating to see it unfolding. thank you for joining us, hugo gordon. >> ed: new beginning today in california. for recreational marijuana being legal. white is not for sale in some major cities just yet. that is coming up. plus, new report on how former comp campaign advisor, george papadopoulos sparked the fbi's russian investigation, or maybe not. (grunts of effort) can we do this tomorrow? if you have heart failure symptoms, your risk of hospitalization could increase, making tomorrow uncertain. but entresto is a medicine that was proven, in the largest heart failure study ever, to help more people stay alive and out of the hospital than a leading heart failure medicine.

women who are pregnant must not take entresto. it can cause harm or death to an unborn baby. don't take entresto with an ace inhibitor or aliskiren. if you've had angioedema while taking an ace or arb medicine, don't take entresto. the most serious side effects are angioedema, low blood pressure, kidney problems, or high potassium in your blood. ♪ tomorrow, tomorrow... ♪ when can we do this again, grandpa? well, how about tomorrow? ask your doctor about entresto and help make tomorrow possible.

>> molly: recreational pot sales are now legal in california. many places like los angeles, it's off to a slow start. marianne, what is the hold up? >> molly, the pot dispensaries that are signed to the public today had to go through a process including approval by local jurisdictions and strict new rules for how it is sold. here is alive look a marijuana dispensary in santa ana, about an hour from los angeles. unlike larger cities like l.a. and san francisco got their act together to make sure doors like this could open today. lines here have been steadily growing got the morning with many more worried about having enough product to serve what

they expect to be high public demand. new state guidelines have owners working hard to comply. >> i expected 30% increase. first of all, we will be burdened with heavier taxation and we will have to hire more staff. >> at this dispensary that has sold medical marijuana for some time, everything has to change, including the packaging, see-through bags that were once allowed, are now prohibited, and for the first time, owners have to pay tax on every sale, and that will get passed on to the consumer. can the sales have been legal for the past four years in colorado. reporters there say comments bite of early stumble, regulation works we know who is producing it and sign it. and they'll protect public health and safety. >> opponents of cannabis legalization colorado say, it is what the revenue to the state,

and is led to an increase in traffic deaths coming use among teens and other independent consequences. what happens here in california is tell you to be seen, but the new law has new rules. you have to be 212 buy. you cannot smoke in public, and road signs along a lot of highways reminding drivers that driving high is still a dui. >> molly: it is an important reminder. thank you very much. >> ed: the the "the new york t" say that george papadopoulos may have sparked the fbi probe after telling an australian diplomat that moscow had political dirt on hillary clinton. two months later, when democratic emails appear online, australian officials pass the info to u.s. intelligence. president trump attorney would not comment on the story. debbie managing editor, and scott bolden, former d.c. happy new year.

spent on trying to understand this, kelly james. on one income of "the new york times" is saying, there was a drunken conversation between papadopoulos and this australian diplomat, the trump folk say, papadopoulos is a coffee boy, there's a lot of beverages. >> i have to say, i am very careful when i drink with australians. nobody can hold her liquor better than australians. i think the white house is being misleading. they keep referring to george papadopoulos as a coffee boy, and a low level volunteer. one could say that paul manafort was a volunteer. he volunteered his services to the campaign that he work for free, and most americans when they hear volunteer, they think of young people who are answering phones, giving leaflets out door to door. that is what people think of when they think of volunteers.

you have lots of unpaid advisors on every campaign, and this guy was in meetings with donald trump and jeff sessions, the head of the foreign policy advisory team. he was clearly -- he talked about possibly going to russia for the campaign. ended up not doing it, because they would not pay for him to g go, but it is misleading to call him a coffee boy. spill what you think about the dossier, it is an important role in sparking the investigation. >> it did play a role, but as a former prosecutor, let me be clear. the dossier could be one of many sources of information, and a junior prosecutor, even a junior prosecutor is set dossier, it has to be corroborated. there are many and multiple sources that go into corroborating that third-party hearsay evidence called the dossier, whoever paid for it, it but as you saw in "the new york times" article, there are several intelligence agencies the british, australian, and others, who information shared with the united states and vice versa.

the argument that the dossier was paid for by the dnc or by hillary clinton and therefore used for the phis award, is ridiculous >> ed: scott, it is not ridiculous, it does not has been completely proven. the fact of the dnc paid for the dossier is a fact. >> even if they did pay for it, this is my point. even if they did pay for, it would not be determined or is positive the weather you can find a warrant, or they open up investigation. john brennan testimony before congress in 2016, he said, there were several contacts between russian operatives that were disturbing it would warrant some type of investigation. all these factors go into why this investigation was triggered, but remember, this is a republican investigation. not a democratic investigation, and that is why mueller is

there. we have to figure out what mueller finds out whether there was collusion or not, which is an act, not the result. the real issue of obstruction of justice, and that investigation has to continue. >> ed: here we are more than a year after the papadopoulos drunken episode with the australian diplomat, it will find out who drinks what, but the substance is that it is more than a year later, many months into the mueller investigation, and there is no evidence. despite what everything said, some may be dispersion, but there is no evidence of collusion between the trump vaux and russia. >> the clear evidence is poor judgment. you have a campaign that prided itself on being antiestablishment. the 28-year-old who lied on the resume going around saying crazy things, but "the new york times" got a hold of a lot of george papadopoulos' emails, and the

report was in great detail, and they have no evidence that he said anything to the campaign about the suppose of dirt that the russians had an hillary clinton. this is something he was doing on his own. he was working his own contacts. i would have to think that the you "new york times" head george papadopoulos telling the campaign, the russians have dirt on hillary clinton, let's use i. "the new york times" would report that. >> look at scott shaking his head. >> ed: show me where the evidence of collusion. michael flynn lied to the fbi, tell the truth, broke the law there, and appears he admitted that. show me the evidence that more than a year later, those collusion between the trump campaign and the russians. >> remember what i said about collusion. it is not a crime, it is the act. there is obstruction of justice, and the support of that is now

trump jr.'s contacts with the russian operatives. he met with them seeking information on hillary clinton. his contact with wikileaks, and the other contacts with the russian operatives. if they talk, i do not know this, if they talk. spill and pardon -- i want to clear that a factually donald trump, jr., proved that the cnn report that he was colluding with wikileaks in getting information early was not true. they had the date wrong. there's a lot of supposition here. where's the collusion? >> that's why we had the investigation. collusion is an act, then prior relationships are being told that his collusion right there. you may not like it, but from a legal standpoint, certainly is.

it's not illegal if you will, but it is politically -- it they received a benefit in return for, then that is the problem. >> ed: you have not convinced me there is a case. admit that robert mueller has a wide open investigation. we'll see what happens in 2018. thank you for both being here. >> molly: the flu season starting early, states are already reporting widespread flu activity with more severe symptoms. health officials say your best bet is using antiviral drugs as early as possible to treat symptoms. >> ed: brand-new year, brand-new tax code. you heard all about that, president trump touting that new law, huge demos for the economy. let's take a look at the rising optimism. plus, how one veteran is helping other wounded warriors heel coming next. >> for anyone suffering ptsd,

and with people who have the same thing you have been through and they know what you have been through. you do not have to talk about i it. this time next year, we're gonna be sitting on an egg. i think we're getting close! make a u-turn... u-turn? recalculating... man, we are never gonna breed. just give it a second. you will arrive in 92 days. nah, nuh-uh. nope, nope, nope. you know who i'm gonna follow? my instincts. as long as gps can still get you lost, you can count on geico saving folks money. i'm breeding, man. fifteen minutes could save you fifteen percent or more on car insurance. hi dad. no. edon't try to get up. hi, i'm julie, a right at home caregiver. and if i'd been caring for tom's dad, i would have noticed some dizziness that could lead to balance issues. that's because i'm trained to report any changes in behavior, no matter how small, so tom could have peace of mind.

we'll be right there. we have to go. hey, tom. you should try right at home. they're great for us. the right care. right at home. i enjoy the fresher things in life.o. fresh towels. fresh soaps. and of course, tripadvisor's freshest, lowest... ...prices. so if you're anything like me... ...you'll want to check tripadvisor. we now instantly compare prices... ...from over 200 booking sites... ...to find you the lowest price... ...on the hotel you want. go on, try something fresh. tripadvisor. the latest reviews. the lowest prices.

>> most provisions take effect today over the weekend. praise for the legislation, according "the wall street journal." this is the biggest corporate, going back to the income tax of 80 years ago. this is a huge pro-growth stimulus for the economy. we are, obama white house overstated how the economy would grow. now, real economic jobs. dean marx's certified public accountant and small business advocate. jean, you're the perfect person to talk about this as we head into a new year. let's dig right into what the president tweeted, talking about huge pro-growth estimates for the economy.

do you think that is the case? >> i don't personally think how can that be the case. this tax bill, it is really not, other variables for us individually is really geared toward small businesses and corporations. they will be seen a lot of taxing throughout the year, and doing something with it, whether they are reinvesting in businesses, hiring more employees, paying their employees more, but if they are buying back shares given to the shareholders, you and i, we are shareholders, a lot of pension funds. excess cash cash giving back, that is really a good thing for the economy. >> molly: you talk about cash in your pocket, voters care about it, routinely, it's one of the top issues that people care about going into elections, and in 2018, if people do save more money, is that the defining issue that could help prevent a

predicted blue wave that analysts say will happen if they go to the polls? >> it is interesting, you and i and all of our viewers here, we will not see any immediate tax dollars coming back into her pockets. the tax withholding table, with paychecks, they will take effect in february. even when they take effect, we will see some coming back in the form of a higher paycheck. it will be a huge amount. most of the amount will see a tax benefit in 2018 tax return. there will not be until april of 2019. that would be a good six months or so after the election of 2018. i am not really sure how much the whole tax benefit is going to drive a lot of people back to the polls to vote for the g.o.p. legislators in november. i'm not sure how much they will be saving at that point time. >> molly: .

the white house, the republicans back up behind us, they also argued that this was going to mean jobs. this that the economy will grow by percentages. this could really be something that stirs things up stain in the wheelhouse. if we see that, if we're seen seen businesses that be something that helps the republicans going into the midterm? >> i'm a small business guy. i write and work for small business. when i see it last small businesses getting the tax cut that we are expected to get this year, i do expect to see a lot of them reinvest and hiring more people. i also have a lot of respect for big corporations and people that work for bigger companies. they have more tax benefits available. they will invest back in their employees, and they will hire more people. again, hoping to make sure they get the people that they have state motivated peer let's face it. working for fox, if you get paid a little bit more come up that

much more benefits, you will go back to your neighborhood you will buy pizzas and go to dinner and only spend money at your -- that will benefit all of your local small businesses in the community as well. and that will turn into new jobs too. more money in people's pockets. how can you argue that that will not help the economy? >> molly: democrats successfully messaging battle, won, that a lot of people did not believe that this would mean more money in their pocket. going into the new year, and the democrats won the central messaging argument or is or something republicans can do, now that the deal is done, tax reform is happening, and people as you mentioned do not file until the following year. after the midterm, they will not see the full impact that had happened to their own situation. is there something here? >> you bring up a great point. they bang the message home. i don't think a lot of us will see the big benefits in 2019 we

file our taxes for 2018. if you're not getting the big benefits right away, we have a short attention span, i think the democrats do have a door open to hammer the point home, tax reform is not paying off like the trump administration said it would. it will be interesting to see how the democrats positioned themselves during this election year. most of us though, particularly as we know it is a long-term thing. we know we will not see benefits right away, but long-term, they should be paying off for us. it will be easier to see how the republicans play that card against the democrats in november. >> molly: you are a small business guy, the repeal or replaceable health care, does something that small businesses were watching closely, and today not happen. now we have the tax reform, what else would small businesses like to see? people that are small business voters, there's a lot of people out there that feel the impact in their hometown community when small businesses flourish. what will they be looking for in

2018? >> you hit the nail on the head. we are really happy regulation is being pulled back. we're happy to see growth, tax reform, my guy, health care is really killing us. it's a huge expense for me and my clients for my readers. it's a big deal for all businesses and individuals. health care reform i believe is going to be a big issue in 2018, i think a lot of small businesses are going to look to see something being done on one congress to try to help them with the rising health care cause. one of the biggest line items on her income statement and it is a growing problem. to answer your question, small businesses will be working towards health care as a biggest issue in 2018 tried to help them grow their businesses. >> it is a divisive clinical challenge. thank you. >> ed: i'm excited you have

more in your paycheck and bias lunch. which night you want to mark on your calendar for the super moon

>> ed: yes, the number one name and news, "star wars" was number one in the box office. passing disney's "beauty and the bees" which had $500 million, episode eight rated $52.4 million, putting the last jedi" billion-dollar market globally. disney outdid itself, having a very good year and what has been a slow year at the box office. >> molly: cell phones are a part of our daily lives that

lots of unexpected moments were captured in 2017. breaking down the most memorable ones. >> it was a year full of instagram moments. facebook and twitter feed filled with laugh out loud moments, others tugged at our heartstrings. a few even sparked a nationwide movement. like the scene from early spring, an elderly doctor in an oversold flight, united airlines pay dearly. a settlement nightmare. in the wake, changes were made the entire industry. jaws dropped when video surface from charlottesville, showing our driving into a crowd. there were protesting white nationalism who came to rally in their town. a young woman was killed, the driver charged with her murder. cameras loved crime, and they recorded a lot of it. the growing trend of bad guys

casing out houses and making out with deliveries. they caught them getting caught in florida, pilfered in fresno, -- cams were eyewitness to shocking scenes like this, a delivery truck running a red light in missouri and toppling on its side. a traffic stop in ohio taking an unexpected turn when an suv slammed into two patrol cars. a police pursuit in utah, and tragedy. the world's most famous tiger gets busted for a dui. ariana grande concert, . a blast in new york city since commuters running for safety. injuries were minimal, please state the home device did not go off as planned. it is still unknown why this,

the deadliest mass shooting in the nation's history, gripping video of gunfire raining down on country music fans, more than 500 people got hurt that night peaked at 58. cameras were rolling when bad weather rolled in, tunnel clouds in texas to illinois. a rare snow tornado in eastern europe. 2017, we turned on the animal kingdom. we witnessed the worst of mother nature, but also, the best of mankind. and at times, when you needed it most. caroline charlie, fox news. you want to keep your eyes on the sky today. if you want to see the first super moon of 2018, the moon will look bigger and brighter. and closer to earth. this is not only the first super moon of the year, but also the month, so if you missed the show, there's another super moon coming by january 31st. i think we used to see these

once in a generation >> molly: i like them, they create opportunities like a plane going to front of the moon or something. >> ed: you see like air force one flying by it. it is a special thing. it would be in next year's or this year instagram package. the great images. >> molly: we will kick off the new year. a little extra folks looking to the sky. for the first time, he saw the confetti coming on. it seem more interesting when the ball don't. 300 pounds of confetti. >> molly: a new year's day warning to the u.s. from north korea, kim jong un says he has a button on his desk to activate his nuclear weapon, republicans basking in the first legislative win on tax reform. we will help them -- will help them keep the majorities in congress next year. we will look at the g.o.p. strategy for the 2018.

we debate the ruling over a panel, although stories in the next hour. it's the phillips' lady!

anyone ever have occasional constipation,diarrhea, gas or bloating? she does. she does. help defend against those digestive issues. take phillips' colon health probiotic caps daily with three types of good bacteria. 400 likes? wow! try phillips' colon health.

>> north korea's dictator ringing in the new year with an ominous new threat. hello, everyone. welcome to "inside america's news head quarters." welcome in. >> ed: good to see you. >> molly: glad you made it in. >> ed: kim jong-un said he always had a nuclear button on his desk and that the u.s. should be aware that his country's nuclear forces are now a reality, not just a threat. kim speaking in his annual new year's day address. also appearing to make an overture imed at driving a wedge between south korea an its american ally. >> molly: we have more on all of this. rich? >> reporter: good afternoon,

molly. in his annual address for new year's, north korean dictator, kim jong-un said he wants peace on the korean peninsula and then claims he can strike the united states with nuclear weapons. this is after a year of testing nuclear bombs and firing intercontinental ballistic missiles into the sea an over japan. he highlighted what he said are his country's capabilities to hit the united states with a nuclear weapon. then, a softer approach, saying north and south korea should lower the military tensions on the peninsula. even discussed north korea participation in next month's winter olympics in south korea. lawmakers say those overtures are disingenuous. the trump administration is now also leading the campaign to isolate north korea economically to force it to stop testing nuclear weapons. secretary of state rex tillerson said the u.s. will on negotiate with north korea when it changes that behavior.

south korea's newly elected president said his government is willing to speak with north korea, though opponents say given its history of failing to adhere to promises, north korea should earn its way back with better behavior. analysts say kim's discussion of peace on the peninsula is just an attempt to try to drive a wedge between the united states and south korea. china and russia say they want the u.s. to also holt joint military exercises with south korea. the u.s. has said it is not going to do so because the u.s. and south korea are engaging in defensive activities, where as north korea's missile launching and nuclear test are violation of international law. the u.s. also pushed china to do more to cut off north korea. the trump administration said it's happy with china's progress, though it needs to step up a little bit. back to you. >> molly: thank you, rich. ed? >> ed: now to deadly nationwide protests in iran, where the demonstrations began late last week over economic issues in one

city, then quickly spread all across the country. president trump tweeting big protests in iran. the people are finally getting wise as to how their money and wealth is being stolen and squandered on terror. look likes they will not take it any longer. the usa is watching very closely for human rights violations. someone else watching following all the developments live in jerusalem, conner, happy new year. what's happening? >> reporter: for the fifth straight day, iranian protesters defying their government, taking to the street, not only in tehran, but all across the entire country. the crackdown on them appears to be intensifying. iran state media reporting hundreds have been arrested and 12 killed. iran's president, a moderate in the iranian political environment, said that while the protests, he supports them in principle, he does not want

protests that will turn violent. he said there are legitimate reasons and grievances about the state of affairs in iran right now. still, iran's government, which while he is the president, he's not the only decision maker there. he's blocked access to the internet and some social media sites over the weekend. president trump and several other members of his administration have voiced strong support in both statements and tweets. hard liners are trying to paint them as paid vigilantes. these protests are unique. they're not on much smaller than the one wes saw in 2009, they are much more widespread. the numbers still aren't there in 2009. but they are attacking not only the economic situation there, but also, ed, they're going at the ayatollah who is the supreme leader there. this is unique where in the past they've attacked the political

system and the economic system. they're going right at the religious establishment as well. and that is something worth while paying attention to as we see what happens over the next couple days. >> ed: major development in 2018, conon powell, thank you. >> molly: for more on the deadly protests in iran, we are joined by by john ryan. these are the biggest protests since 2009. those protests in 2009 about the re-election of the then president. this is about more than just the economy. we just heard this report talking about how this is much broader and has to do with the religious leadership there and an effort to push back against that, to seek an entirely different kind of future. do the people have a chance of making a big change now versus in 2009 when thing weres shut down by the government? >> well, the critical question i think, as always with a revelation is, what do the security forces do?

if the supreme court forces remain loyal, it's hard for the people to render their will. we see in venezuela, the security forces have skaeued loyal to the government even as people are starving to death and taking to streets in much larger numbers. that's the first issue. the secondary point though, if this is a signifier for something i think is going to happen more often and ultimately will bring down the iranian regime. the simple.here is tkepl graphics and technology. iran's population is very young. it is very connected with the west for a variety of reasons. i can suggest the united states has given some support. it is known where the iranian government is taking off line different wi-fi service. people are still finding ways to post videos. that's the kind of thing that makes it very hard to trample this down as was the case in 2009. >> molly: the authorities have

warned a tough crackdown could be coming. meanwhile, president trump and the white house have expressed support for the people there in iran. we have a tweet that the president sent. he said, iran is failing at every level despite the terrible deal made with them by the obama administration. the great iranian people have been repressed for many years. they are hungry for food and freedom, along with human right. the wealth of iran is being looted. time for change. could u.s. action make a difference? what could the u.s. possibly do? >> i think that is -- i would wish the president would make -- that's a great tweet. he is right. the food and freedom, the basic level that iran is a very oil rich, natural gas rich. but, of course, the theocrats in power and the hard liner, at least in foreign policy, have taken a lot of that money and put it in ways that have provided benefits. what can the united states do?

first, to let this be an indigenous uprising to try to avoid having an american footprint. because that will damage the legitimacy of the iranian people because of a coup that we played a role in the british in 1953. but secondly, we can provide support behind the scenes in terms of providing wi-fi materials. the obama administration, one thing it could get credit for, probably the only thing in iran, was developing some sort of program that provided for the covert, allowing people to communicate in ways that, through internet. we should do more of that. >> molly: some quiet under minding. lindsay graham has called for withdrawal from the iran nuclear agreement. now, the president loudly criticized that deal, that agreement. is it time to withdraw from the deal? >> no, i don't think so. i think the president has the correct course on this, which is to try and strengthen the weakness of the deal, which are

snap inspections, access to military sights and the ballistic missile side of things. if you can do that, that's important. there's an tune here with these protests in the sense of the obama administration has given sanctions relief. by trump saying, look, if we can make the deal better and the iranian people can access these kind of more productive investments through that money, that's great. if not, at a point further down the road, we are going to withdraw. use that in the pressure point on the european. unless the europeans jump on the side of the united states, it will be very hard to pressure the iranian regime to change. there's a big opportunity there i think for the president. >> molly: tom, shifting gears to north korea, the leader saying it's not a mere threat but a reality. i have a nuclear button on the desk in my office. at the same time, he has made a push toward opening dialogue at least with south korea moving forward. so let's kick off with this initial threat about having this button on his desk. kim jong-un said this is a

reality, not just a threat. should the u.s. take this as an escalation and how should we respond in how should the country and our leadership respond? >> i don't think we should see it as an escalation. u.s. power is far superior than north korea's. we can destroy their functions more efficiently than they can destroy ours. they start putting war heads on missiles, they will disappear. the concern is the specific outreach to south korea. that is motivated much more by by beijing. the chinese want to stop pushing for military action. they know if they can suck south korea away, the united states ally is there. i don't buy the idea, and i think the president is warming up to this understanding. i have never believed china was that interested in helping us on

north korea because, quite frankly, it helps them to have us in a position of difficulty. they know kim jong-un is never going to attack them. a million refugees come across the border? what do they care. they'll let them die. we have to be rational about the nature of the regimes we are dealing with. >> molly: after virtually ignoring the south for years kim jong-un said he's reaching out to the south and wants to start a dialogue. why now? is this a signal that the sanctions are working? >> i think to some degree. i also think it's an opportunity that the chinese have been improving their relations with the south koreans in recent months. unfortunately, president moon of south korea is losing his nerve in this battle of wills. so it's an opportunity against some of the united states and south korea in the belief that if south korea is not willing to take military action, trump will have to back down to that. one good thing here is that president trump saw more than

most other leaders, not someone who tends to follow in the grain of people trying to manipulate him. at least on this issue. so i think the chinese hopefully will be very disappointed. >> molly: all right. we covered quite a bit of geo political ground. tom rogan, thanks for joining us. >> ed: in colorado, new details about the gun man who shot and killed a sheriff's deputy and wounded four other. matthew reel was an iraq war veteran who holed himself up in his bedroom before firing 100 rounds at officers who were responding to a complaint about noise. two civilians also wounded. authorities say reel had ranted about the local sheriff and police on social media leading up to the ambush style attack. he was shot during the incident and died at the scene. >> molly: a new year means higher wages for some workers. many states bump up their minimum wage for 2018. a look at where this is happening next. plus the gop tax bill is now in

effect. what it means for your bottom line, still ahead. >> the tax cut that we just passed historic in its nature is going to allow more americans to keep their money and not end up giving it to washington, d.c. i've been a lot of things over the years. your blind spot... your loose satellite dish... the literal deer in the headlights. but it's a new year and i'm making a resolution. no more mayhem. this year i'm everything that helps keep you safe. like the fuzzy, yellow tennis ball dangling from a string. helping make sure you pull the car in far enough... but not too far. ♪

>> molly: minimum wage workers in 18 states ringing in the new year with a boost in their pay checks with the federal minimum wage remaining $7.25 per hour, more and more states have opted to implement their own higher rate that local employers must observe. many of the bumps beginning in the new year come courtesy of recent ballot initiatives approved by voters. in red and blue states alike. >> ed: president trump's biggest legislative win so far now in effect. today is when the republican tax reform bill officially becomes

law, at least takes effect. how big a win was this for the gop? joining me now, politico's national reporter. >> happy new year. >> ed: democrat seems to be effective during the debate saying this is about the rich, it's not gonna help the middle class. the president, before he left for florida said, look, i'm not gonna have to sell this. once people start getting fatter pay checks in february, that's when the irs said with holding will take effect, is that gonna start turning this around? >> that's certainly the gop's hope. talking to a lot of republicans on capitol hill, they essentially say the same thing over and over, which is this bill will sell itself. once people start to see it in their pay checks. they'll be happier with it. then all the negative talk about the gop tax bill will move to the side. democrat, however, aren't going to just shut up about this. democrats want this to be a negative tax bill. they want republicans to get more and more unpopular. for now it is still unpopular. >> ed: on the house side of

this, some states say california or new york where you may have moderate republicans trying to hang on to a seat, the salt, state and local taxes. they're basically going up for some. might that hurt the gop in some of these big house seats? >> absolutely. there's some seats in particular, as you said, new york, new jersey, california, that a lot of republicans are very concerned about right now, specifically because of the difficulty that these local congress men have in selling this bill to their constituents. many of them did not support it. it's going to be that much harder for them to try and thread the needle there politically. when you have people going out there, like the other day you saw marco rubio say, i wish we had done less for corporations in terms of selling this bill. that just makes it more difficult. >> ed: on the other hand, democratic talk on the tax cuts was this is not going to trickle down to workers. seems to me it will help the president and republicans that over the holidays we all heard

about a lot of companies across many sectors saying, here's a bonus, we're gonna hire more people, we're gonna invest in our company. that seems to run counter to what marco rubio and democrats say. >> sure. that's why you say a lot of democrats still pushing on this bill. they're not going to let this debate just end. democrats are saying, a, these are temporary moves and, b, wait for the long run, see what your pay check look likes. these tax measures do expire. again, this will be a battle that's not over at all. it's going to keep going for awhile. >> ed: after the republican failure on repeal and replace of oba obamacare, earlier last year, there was talk, president has to get something done. now that he has gotten it done, what do you think he may need to get done to show, yes, in attention to the tax cut, republicans can cover, is it immigration, infrastructure? >> that is the big question on his plate. he'll be meeting with

congressional leaders to try and figure out what the agenda is. first and foremost is tkpwgovert spending. in that conversation are big questions about things like daca, the immigration program, how to fund that, whether to fund that. democrats really want to pressure the president on that. the president does want to move forward on plans like infrastructure. so the question there is how is he going to be able to work with paul ryan, mitch mcconnell? are they going to get on the same page here? they hope so. >> ed: that government funding running out roughly january 21st. january 30th i think i have circled on the calendar which is another big day for the president. state of the union address. this is an tune for presidents to reset things. what do you think this president will have to do? seems like he has unique challenges going into this year. >> this president is not under any illusion that he's going to start making democrats like him at any point soon. i think what you're going to start to see from the president

is really an attempt to get republicans behind him and unifying his party in 2018. he knows and everyone at the white house knows 2018 could be pretty challenging for the republican party. but, if they're all able to unite behind an agenda and agree on what they're going to work on this year, that could at least start to get them moving in the right direction. >> ed: i have heard some of the president's comments saying one thing they're thinking about is going back to the -- this is less about bullet points and more about a big theme. he ran against the swamp. now he's in washington. it seems like it's important for him in an election to get the republicans to stay home going into the mid terms to say, look, i'm trying to drain the swamp. term limit, other things like that. >> that is something he cares about. at least in public. he talks about it nonstop. it does help him with his base. it is tricky for him to try and

navigate this politically. the way you've seen this play out in races all over the country is lot of republican primary voters have read this as an indictment of his own party's establishment. you see it with republican candidates sometimes running against mitch mcconnell, someone who they see as an embodiment of the swamp. so it's a tough line. >> ed: he needs immigration, infrastructure and the like. >> exactly. >> ed: molly? >> molly: bitter cold a holdover from 2017 in many parts of the country. like in chicago, where temperatures plunged into the single digits. when is it going to start warming up? plus 2018 starting off on a high note in one state with the legalization of recreational marijuana. where you can find these pot shops. >> i felt like a little kid on christmas eve. is santa coming or not? you know? megan's a lawyer.

when it comes to presenting evidence, nobody does it better. she's also this close to finding bigfoot. but when it comes to mortgages, she's less confident. fortunately for megan, there's rocket mortgage by quicken loans. it's simple, so she can understand the details and get approved in as few as eight minutes. apply simply. understand fully. mortgage confidently. rocket mortgage by quicken loans.

>> from the midwest to the northeast bitter cold is what many people had to deal with as part of their new year's eve plans. chicago was in the single digits leaving some people not quite prepared. >> we were ready. i don't think our faces were ready. we didn't bring anything to cover our faces. that's what we're struggling with. the more you move and the more

pizza you eat, i think you'll make it. >> so cold. having fun. >> ed: they do call it the windy city. temperatures dropped to 9 degrees in times square making it the second coldest ball drop in the city's history. >> molly: you've got to be there. >> ed: i was there. it was so intimidating. you have dean cain, superman. >> molly: he was there just in case, of course. >> ed: he's like, you're not gonna take a blanket, are you? no, no. >> molly: yes, i am. i would have snagged that blanket. i can't believe you didn't goshing give me that. >> ed: he had a blanket on. if superman's got a blanket and cape, i can at least get a blanket. >> molly: i follow dean cain. i knew he was in charge. recreational pot shops are now open for business in california with more than six dozen marijuana dealers licensed to start legally start selling today. folks all over the country could

benefit. >> tens of millions of people are now within the state of california legal cannabis consumers. we can also serve anybody from any state or any country anywhere in the world as long as they're over 21 years old. so the entire state is going to benefit from cannabis legalization, not just consumers. >> molly: mary anne is live with more on this. >> hi, molly. the pot dispensaries that did receive that state license to start selling today had to go through a pretty long process that included approval by local jurisdictions and, of course, streubg new rule force how it is sold. it may not look like it, but this is marijuana. candy, cookies, elixirs and jar after jar of the smokeable variety, all sold only as medicine, until now. >> this is gonna change. i hope you feel better.

>> california joined five other states that have legalized recreational pot opening doors to the public and ushering in new rules and regulations. >> they have to be preweighed and sealed. >> reporter: the owner of this dispensary has a lot of work to do. unlike before, see through packages are prohibited. for the first time, he must pay tax on every sale, leading to higher prices, which will get passed on to the consumer. >> i expect a 30% increase because first of all, we're going to be burdened with heavier taxation. plus we're going to have to higher more staff. >> reporter: cannabis sales have been legal four years in colorado. supporters say in spite of early stumbles, government regulations work. >> we can control it. we know who is producing and, who's selling it and we know they're following rules. >> reporter: not to mention, millions in new tax revenue for state and local governments.

in california, lawmakers hope to collect $1 billion in 2018 and billions more in years to come. but opponents of legalization say it's not worth it. >> what we've seen when that use increases is things like the traffic fatalities increasing, the youth obviously abuse and adults increasing. we also look at things like er and hospitalizations and homelessness, whole other realm of things that are unintended consequences from this legalization. >> california will have to wait and see what happens here. the new law comes with new rules. you have to be 21 to buy it. you can't smoke in public. there are already road signs along many california highways, reminding drivers that driving while high is still dui. molly? >> molly: very fair reminder. thank you, mary anne. we appreciate it. >> ed: new year vacation turning to tragedy. five members of an american family perished in a sight seeing plane crash.

what authorities are saying you need to know now. plus, washington's big to-do list. by meeting taking place this week at the whrous. what we can expect as a government shutdown looms. >> we clearly have to get a budget passed in january and make it long term. but there's so many other subjects. pensions, healthcare. i have been living in a hospital the last two weeks with my husband. i can't tell you how many people come to the room crying, scared to death. we have to do better. psoriasis does that. it was tough getting out there on stage. i wanted to be clear. i wanted it to last. so i kept on fighting. i found something that worked. and keeps on working. now? they see me. see me. see if cosentyx could make a difference for you- cosentyx is proven to help people with moderate to severe plaque psoriasis... ...find clear skin that can last. don't use if you're allergic to cosentyx.

before starting cosentyx, you should be checked for tuberculosis. an increased risk of infections and lowered ability to fight them may occur. tell your doctor if you have an infection or symptoms. or if you have received a vaccine or plan to. if you have inflammatory bowel disease, tell your doctor if symptoms develop or worsen. serious allergic reactions may occur. never give up. see me. see me. clear skin can last. don't hold back... ...ask your dermatologist if cosentyx can help you find clear skin that lasts.

>> ed: ten americans among 12 people killed in a fiery plane crash in costa rica yesterday. among the dead, a family of five from suburban new york city. plane slamming into a wooded area shortly after takeoff. the crash happened near juan santa maria airport in the northwest part of the country. laura ingall is covering from our new york city news room. such a tragic story. >> it is, ed. we are learning heart breaking details as some of the american victims have been identified. a mother and father from scarsdale new york and their three sons were among those killed. according to published report, they told friends they were looking forward to taking their sons william, zachary and matthew on an adventure through costa rica. the family known for being very involved in the local jewish community, loved to travel the

world together. a trip they had been looking forward to. the stein berg weres on the last stop of their trip when the plane crashed into that wooded area just after takeoff. five other americans, not jet identified, and two local pilots were also on board. no one survived. there were reports of strong winds in the morning that forced a change in the itinerary but the plane continued on its flight plan to san jose. this is the second incident for nature air in the last few months. september 2017 an american and another passenger died. it crashed a few minutes after taking off. there were reports of strong winds on yesterday's flight which we mentioned. that is something that investigators are definitely looking into. now, according to aviation officials they passed a safety inspection just one month ago. >> translator: the plane from the accident had recently been authorized about a month ago, so

it was able to operate as an airliner. for a plane n this case the doomed plane to, be dually registered, it goes through an inspection for air worthiness and functionality that permits operations such as those it was carrying out up until today. >> costa rica's ex-president tweeted one of the pilots was her cousin. investigators are on the scene looking for the cause of the crash. >> ed: such a heart breaking story. thanks for bringing it to us. >> molly: busy new year ahead for lawmakers. democratic and gop congressional leaders will meet wednesday with top officials to discuss a deal aimed at avoiding a government shutdown that could be looming as well as immigration and other top issue. this as president trump will host speaker paul ryan and mitch mcconnell at camp david this weekend. they will be plotting their 2018 agenda. let's bring in our panel jim kesler is a former policy director for senator chuck shumer and brad blakeman former deputy assistant to president

george w. bush. thank you both for being here. happy new year. >> happy new year to you. >> molly: there's a lot on the list just for january. one of the big things that's at the center of all of this. there's the government shutdown and the issue of immigration has blended right into this. democrats say we're not gonna sign unless we get some help for the dreamers. president all digging in saying no daca deal unless he gets what he wants. the walsh ending of chain migration. pretty aggressive on both sides. the big question is, who will actually bend? brad? >> well, they're both going to have to bend. 2018 will have to be a year of compromise. republicans need democrats. the rules require it, especially in the senate, to get legislation passed. but the good news is on the government shutdown, there's not going to be one. the bad news is, we're just gonna kick the can down the road again and meet up with this probably in the summer. but i think the aggressive nature of the trump agenda is gonna be infrastructure, where i

think we can get democratic support, daca and solving once and for all this immigration problem with dreamers. but there's enough compromise on both sides. why? because republicans and democrats believe in strong borders. they all believe in a fair and equitable solution to daca. that's where compromise is a must. >> molly: one hopes each side will be able to find the middle ground. jim, the democrats though, they're saying they're not going to sign the bill unless they get this fix related to the dreamer. if they dig in, will we see the government shut down, if it's potentially there? >> so, there is a ticking timeline on daca that is march which is about the time when the got shutdown would occur. president trump promised we were going to have a daca solution by march. these streams are coming together naturally. look, what the president has asked for in his latest tweet is 100% of what the president wants and daca is about 8% of the

immigration problem. 800,000, you know, 10 million undocumented immigrants. so it's like, you can say, look, i want lebron james and i'm gonna give you lonzo ball. trump is gonna have to move a little bit here. he's been asking for everything and giving democrats very little. i agree with brad. this has to be the year of compromise, has to be the year of bipartisanship. we don't have these situations where it's 50 vote majority in the senate. immigration is a place where this can get done. the president's got to move a little bit. >> molly: interesting. you mention the year of compromise. we'll see what happens as they get closer. potentially there. this up coming weekend, president expected to meet with republican leadership to start talking about what their priorities will be, what they think they can accomplish. what do you think that agenda will look like? what do you see coming out of that meeting they will be able to accomplish? >> i think they'll have a game plan, both in scheduling, when

we can get this done before congress. we're on talking about february, march, april, may and june. then both the house and senate are going to be up for re-election. one-third of the senate, every member of the house. it will be every man and woman for themselves in trying to get relecked. i would urge your viewers to pay close attention on january 30th to the president's state of the union. that will be his road map. that will be the agenda. that will be a challenge to congress for the coming months. i think it's going to be very aggressive. >> molly: jim, shifting to you, when you talk about compromise and this is the year that there has to be compromise, where will democrats find it? everyone wants victory they can crow about heading into midterms. who gets the win if you come to a compromise? that always seems to be the challenge in washington. nobody wants to give the other side a victory. >> both sides have to get a win on this and both have to get a loss on this. republicans have a problem. they're going into the mid terms. their approval rating wouldn't melt an ice cube.

they're looking at a blood bath in 2018. 2017 was the year in which republicans really did not look to democrats for help. they did everything on their own. there needs to be a change. the signal needs to come from president trump. it's gotta be more than words. he had to deal with chuck and nancy in september and then he backed off. he really needs to reach out to democrats. he needs to move to the senate. they can do something on infrastructure. they can do something on immigration. it's not outside of his power. he has to do it. he's got to force mitch mcconnell and paul ryan to move their caucus as well. >> molly: you mentioned a blood bath. we heard about a blue wave going into 2018. does that make this year before a potential blue wave, even more important for republicans as far as what they can get done? >> absolutely. they need to run on their record. we control every facet of government. the white house and both houses of congress.

so it's incumbent upon us to have a record that we can run on. history is against us in the midterms. the civil war. lost 32 seats in the house and 2 in the senate. history is not with us, but math is. democrats are defending a lot more races, both houses and senate, and putting more money and spreading their resources thin. if we have a good record, i think we will be rewarded by the electorate come november. >> molly: jim, the final word. are there any concerns democrats could be seeing a lot of victories coming up, that they could be complacent going into this election year? >> i don't think you'll see democrats be complacent. one of the things you saw both in the virginia race and governors where democrats won the governorship and in alabama where doug jones won, is in these blue -- i'm sorry, purple and red state, democrats nominated moderates. and if they are nominating moderates in purple and red areas, they could have a very very successful election.

thing about 2018, doesn't mean you can't get things done this legislative session. >> molly: always interesting when elections feature more fringe candidates. we shall see who comes inin 2018. thank you for being here. have a wonderful 2018. >> you, too. thank you. >> ed: meanwhile, supreme court justice, chief justice john robert, promise to take a closer look at policies on sexual harassment. this is part of his annual review of the federal judiciary. roberts saying the last few weeks have made it clear the bench is not immune to the problem that is spread to other industries. comments come a few weeks after alice kazinski resigned after multiple women came forward to accuse him of sexual misconduct. >> molly: the national anthem protests at nfl stadiums now a federal court is weighing in on the issue when it comes to high school games.

what its ruling was and the implications now for the rest of the country. plus buffalo bills does something a team hasn't done in nearly two decades and how fans are reacting.

>> molly: buffalo bills heading to the playoffs ending the longest current drought in professional sports at 17 years. bills had to wait it out, seeing if the ravens lost to see if they made it in. check that out. that is joy right there. locker room erupting in celebration. bengals took the lead from the ravens clearing the way for the bills to head to the post season. giving joy to those long suffering fans as well.

>> ed: national anthem protests were one of the biggest stories for the nfl in 2017. right before the new year a federal court in california ruled that a high school football player cannot be ordered to stand for the national anthem for games. the court saying the school district's rules violated the student's first amendment right to political expression. joining us now, former head morris county prosecutor and criminal defense attorney. happy new year to you both. >> happy new year, ed. >> happy new year. >> ed: robert, i want to start with you. i understand what the court said. i understand what the law may say. on the other hand, why in the world can't you just say, let's respect the flag, let's respect men and women, let's stand for the anthem? >> i'm a fan of doing that, ed. absolutely. it's funny, because our constitutional government and the supreme court decisions, however, say that people don't have to be forced to believe in what it is that i believe in i.e., stand up for the national

anthem. they basically said you have a right under the first amendment to protest. lot of times people confuse a legal issue with a political and a moral issue. and this court is basically saying this child, this kid, cannot be forced to stand up for the national anthem. that is something that was protected in the constitution since cross burning with the kkk, kkk protests and sorts of speech that is hateful and vile. >> ed: this was simmering throughout the nfl season. some teams found an accommodation where they might kneel. some players kneel before the anthem to express their free expression, as we all have and can and should do, but then everybody stands for the anthem. it seem likes the nfl didn't really come up with a clear coherent policy and now it might be trickling down to college and high school football as well. >> right. definitely. that's where these students are getting the idea from. they're watching the nfl players. they want to emulate them.

biggest distinction from the court is that the nfl is a profit based corporation. it's a private entity. it is not a government entity. when you're dealing with high school students and certain colleges, those are public schools. when you've got kids forced, mandated to go to school. you've also got to have the same constitutional protections that you have in any other government run agency. so they've got the constitutional right to freedom of speech. in the nfl, it's a different analysis. i think what we're going to see going forward in this country is any other high school that wants to impose some type of ban like this high school in california did, they're going to now take a second look and say, do you know what? this is not going to be allowed. we are not going to be able to continue to ban students from the right to expression and free speech as long as it doesn't spwaoer fear with their educational goals. >> ed: that's all well and good. the coach can also say, i'm gonna sit that player. >> if he does that. if the government take ax shun,

and he penalizes somebody for exercising a known constitutional right to protest, which this is, then he's committing a violation which is our civil rights discrimination law and subjecting himself and this school to massive civil liability and the payment of attorneys fees. so they would be wise not to have any retaliation for somebody exercising a constitutional right. >> ed: but when you start citing u.s. code like that, ashley, have our systems become warped to the point that the coach wants to make a decision, we have to go to the u.s. code? >> well, you know, you've got to look at where this case started. it started by students heckling the student that filed this lawsuit and calling him racial slurs. so, you know, the coaches and the parents need to stand up and say, none of that's okay. none of that's okay. because what happened is, they started out with this bad

sportsmanship policy. then they took it too far. they instilled this rule that says you can't kneel during the national anthem. and so you've got to go back and just teach your kids the right to do and then hopefully it doesn't get to the.where we have to give the code involved. hopefully the coach would teach these kids to do the right thing. especially the coach of the kids who started this in the first place. >> ed: what about when a coach wants to say a prayer before the game and people freak out say, you can't do that? coach said, that's my free expression. i want to share a prayer. >> the problem is, coach can't implace his freedom of religion on other people. we get back to the same analysis. i think we need prayer. i believe in standing for the national anthem. i think we've lost a lot in this country by the manner in which we're depricating more ways of society. when it comes down to controversy, that law that i decided, good fences make good

neighbor. they go to the law. we have to follow the law. >> ed: all right. happy new year. >> thank you. >> happy new year. >> molly: dreaming of becoming a millionaire? there are big jack pots in the nation's two lotteries as we head into this new year. plus a look back at the scandals that rocked the country from hollywood to the nation's capital. with a sore back. but he's got work to do. so he took aleve this morning. if he'd taken tylenol, he'd be stopping for more pills right now. only aleve has the strength to stop tough pain for up to 12 hours with just one pill. tylenol can't do that. aleve. all day strong. all day long. and for pain relief and a good night's rest, try aleve pm for a better am.

>> ed: if you're feeling lucky, you may want to stop an buy some lottery tickets. powerball jack pot swelled to $440 million from wednesday night's drawing after nobody won saturday night. it's the ninth largest powerball prize in history. and the megamillions is no slouch either. that jack pot rising to $343 million for tuesday's drawing combined total for both prize, $783 million while the chance of winning either game is very low. chance of winning both is 1 in 88 quadrillion. >> molly: has that ever happened? >> ed: i can't imagine. >> molly: why can't that happen to us? >> ed: i want to know the next holiday, if you win this tuesday or wednesday, would you come back and host with me or would you be outta here? >> molly: ah -- i mean, if you

called and asked really nicely, i might come back. >> ed: you took too long. maybe take a long vacation. >> molly: you're due a long vacation. you need a break. well, the wrong best picture almost always takes home the oscar and a number of celebrities and politicians are hit with sexual harassment allegations. 2017 was a year filled with scandals in hollywood and washington. we take a look back. >> la la land. >> an epic blunder at the oscars when la la land eclipsed moonlight as best picture. but moments later -- >> i'm sorry, no. there's a mistake. moonlight, you guys won best picture. >> the mixup was corrected in the middle of la la land's acceptance speech, but the cast and crew of moonlight accepting the award. kathy griffin creating a bloody mess after a photo shoot surfaced with her holding a mask of president trump's bloody head.

the comedienne initially said she was sorry and then later evoked that apology. united airlines faced a public relations nightmare in phraeul. video shows two officers dragging an officer off the plane and the passenger refused to give up his seat to a crew member. ceo of the company issued a public apology for the incident. you might want to call him pill cosby. legendary actor accused of drugging andrea costand before he performed sexual acts in 2004. the judge declared a mistrial. new trial expected to begin in the spring. dove coming under fire for what some called a racially insensitive commercial. the ad featured a black woman removing her shirt to reveal a white woman. the soap company saying it missed the mark in thoughtfully representing women of color. dozens of women come forward accusing director harvey weinstein of harassment, assault and race. the movie mogul expelled from

the academy of motion picture art and sciences. in addition to several open investigations by authorities. weinstein denies the allegations. weinstein story creating a ripple effect with dozens of men accused including kevin spacey, louis c.k, ben affleck, dustin hoffman, nick carter, sly stallone and george h.w. bush. >> as you can imagine, we are devastated. >> matt lauer terminated from nbc after an employee filed a complaint about inappropriate sexual behavior in the work place. andrew lack said it was the first complaint lodged against lauer. but they have reason to believe it was not an isolated incident. charlie rose was fired from cbs and his interview show was dropped by bloomberg and pbs after several women accused the former cbs this morning host of harassment including groping and lewd phone calls.

harassment allegations shaking up washington. roy moore accused of dating and in some instances sexually assaulting teenage girls when he was in his 30s. he denies all of the allegations. >> people of alabama have more in common than to divide us. >> moore ended up losing the seat in the december 12 election against democrat doug jones. democratic senator al franken shows in this photo placing his hands over leann tweeden in 2007. several other women accused the senator of touching them inappropriately at campaign events. after mounting pressure, the senator resigned. this just days after john conyers, facing his own allegations, announced his retirement. with 2018 right around the corner, no doubt there will be more of these scandals in the news. we will be covering it all for you right here. >> ed: thank you. the violent protests sweeping across iran. the biggest anti-government demonstrations in several years.

iran state run media reporting at least a dozen death, hundreds arrested. reaction from president trump coming up next. they appear out of nowhere. my secret visitors. hallucinations and delusions. the unknown parts of living with parkinson's. 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.

if your loved one is experiencing these symptoms, talk to your parkinson's specialist. there are treatment options that can help. my visitors should be the ones i want to see. my visitors should be the ones can make you feel like noyour day never started.st get going with carnation breakfast essentials® high protein drink. with 15 grams of protein to help you be your best. try our high protein drink. and look for our coupon in sunday's paper. and when youod sugar is a replace one meal... choices.

...or snack a day with glucerna... ...made with carbsteady... ...to help minimize blood sugar spikes... ...you can really feel it. now with 30% less carbs and sugars. glucerna. >> welcome to a brand new hour of america's news headquarters. i'm ed henry. >> and i'm molly line. sweeping protests across iran. a dozen people have died, hundreds arrested. according to state tv, armed protesters tried to overrun military bases and police stations before security forces stopped them last night. government officials have blocked access to instagram and telegram. a messaging app that activists are using. some protesters chanting against the government and the supreme

leader. connor powell live with more. are these protests growing? >> molly, growing and also popping up all over the country. this was -- what we're seeing there is still relatively small in comparison to what we saw in 2009 where millions came out on the streets, particularly in tehran. these protests, these demonstrations are interesting. because they are all over the country. now, those were largely in 2009, censored in tehran. these are coming up in conservative areas. the crackdown is starting to intensify there. the iranian state tv reporting hundreds have been arrested and 12 people killed in the last couple days. the government has stopped the internet and cutting off other sites. they have a history of a repressive regime. it's hard to see the protests continuing without a further

crackdown. one of the interesting things we're hearing, the majority, like 70, 80% of the people protesting are under the age of 25 right now. >> so the future generation. this is about far more than just the economic situation there, right? >> yeah, this started in -- with cries about the economic stagnation across iran. these protested started in conservative smaller areas, not in tehran which is urban and more developed. they're starting in the smaller conservative areas. we're also seeing a criticism of the islamic republic being voiced as well. we've seen women remove their head scarfs. people are denouncing the supreme leader, the ayatollah, iran's respect, a moderate reformer in the political environment. he said violent protests won't be tolerated. he said he supports the right to

protest and there's grievances about the corruption, the stagnation of the economy. it does look familiar in many places that security forces are allowing peaceful protesters to protest. in other places there's crackdown on peaceful protests. and the supreme leader appears to be walking a fine line between voicing the complaints of the average citizens of iran while trying to walk a line of not creating too much tension and not inflaming the situation. he's looking for it both ways where the government is seen as a protector of the people and not the oppressor of the people. how long that can last is a big question. we're watching to see if this continues the way it is, does it spark more protest or does it die down as well. >> no doubt it's a dangerous place to be a political dissident or push back against the government. connor powell, thank you. president trump is set to head back to washington.

he tweeted earlier, we will be leaving for washington d.c. later on and it will be a great new year. steve harrigan is live in west palm beach, florida following the president. not far from his resort, of course. steve? >> molly, as he had throughout the ten-day working vacation in florida, the president was up early and at it on twitter taking aim at the protests in iran. saying iran is failing at every level despite the terrible deal with them made by the obama administration. the great iranian people have been repressed for many years. they're hungry for food and freedom. the wealth of iran is being looted. time for a change. the fourth day in a row the president has tweeted about iran bringing attention to demonstrations and showing support for the protesters. molly? >> the president heading back to washington. what is on his agenda when he returns? >> the president really laying out a very optimistic mood for

2018 at mar-a-largo last night where he was ringing in the new year as he has for the past decade with family and friends. the president predicting that 2018 will be a banner year. >> we're going to have a great year. a fantastic 2018. we're off to a very good start as you know with a great tax cut and anwar and getting rid of the individual mandate, which is very unpopular, as you know. we're going to have a tremendous year. the stock market will continue to go up. >> among the events coming up for the president, a camp david meeting next weekend with mitch mcconnell and paul ryan. the trio are likely to lay out a legislative strategy for the coming year. back to you. >> the holidays are over. thanks, steve. we appreciate it. >> back to work. let's bring in our political panel. vincent here, a political

strategist, and david, author. vincent, i want to start with what is happening in iran. susan rice, president obama's national security adviser took to twitter. he said president trump should stay silent, stay out of the way. is that a wise strategy? >> no, i don't think it is. what is great about this and very hopeful in 2018, the president is demonstrating on the international state how he won the presidency at home. he's speaking what is true. regime after regime has suppressed freedom and now the people are rising up against that. it's not as big as what was earlier reported as 2009, but unlike president obama that cut a deal with the regime of iran, president trump is openly signalling to the people that we as a country are with them and

should support them. >> what about that? susan rice saying that president trump should stay quiet. i remember that president mccain said that president obama miss add golden opportunity. some of the protesters were chanting obama, obama, as if they were craving u.s. leadership. why should the obama people now say president trump should keep his mouth shut? >> let's put it in perspective. the last three administrations have failed to manage iran and north korea, which we'll talk about later. the two deadliest places on the planet. the most difficult in terms of u.s. foreign policy. the stakes the highest. i think that the president and the administration has to do a lot of things. they have to not just play the front channel, they have to play the back channel. i agree with president trump, that it's hard to defend the $33 billion of aid that we have given to pakistan the last couple years, which relates to iran. by the way, not to mention the $5 trillion we spent on wars in afghanistan and iraq.

imagine if we spent that at home or had countries to spend it on other than iraq and afghanistan. my worry -- i support the rising up. what is happening in iran is more pragmatic. the question is, do we do that on the front channel or the back channel. >> vincent what do you think about lindsey graham? he said tweets are fine, speak out mr. president, but we need a plan as well what would you suggest the president needs to do to follow up on the tweets? >> i agree with david. should be a back channel explored. who will be the back channel? you can hear a pin drop across the european capitols. so far president trump and prime minister netanyahu are speaking outs. we need the eu to speak out and help the people of iran. another opportunity and shouldn't be squandered. >> david on that point, why in

the world did president obama give the iranian regime $150 billion to prop up the nuclear deal when as president trump is saying, people around the world are agreeing him, the money is not getting to the people? >> it's a good question. i was not in favor of the iranian deal. i find it hard to defend. the one thing i would say is for all of us that have doubts about that deal, what is contrarian approach? you can't ignore iran and you can't, i don't believe, successfully military strike and take out their nuclear weapons what are your options? the one good thing about the iranian deal in play, it's buying us some time. we have to take advantage of that not just militarily but diplomatically. >> vincent, david makes fair points. when he talks about no good options, sounds like north korea as we shift gears here. you have kim jong-un giving his new year's day message saying maybe there's an overture to south korea over the olympics, but by the way, i have a phone on my desk that can launch a

nuclear strike against the u.s. where are we in this? >> kim jong-un saying that is laughable. but tomorrow it can be very real. you know, i think that his overture to south korea is not necessarily trying to draw a wedge between the united states and south korea. he sees a president, president trump, who is acting unconventionally. conventional diplomacy has brought us to this point. now we have a president that is willing to do things unconventionally and talk openly about meeting with kim jong-un or openly talking with the knot koreans, but also keeping the military options on the table. last week with serious discussions about naval blockades. i think kim jong-un is buying time, but also seeing some writing on the wall. >> vincent, david, we're going to dig deeper on north korea with you later on. david, i want to ask you one last question about iran, which

is how you sort of see this playing out in the next couple weeks and in particular, president trump promising the campaign that he was going to de-certify the i ran nuclear deal that we talked about but so far has gone slow on that as commander-in-chief as he weighs his options. >> that's been wise. i trust secretary mattis' wisdom on this and a lot of the military folks around the president that are doing a very good job. i think we have to relook at our approach to iran. just like we're talking about pakistan and the amount of money we have spent on the wars in afghanistan and iraq. we need to reboot our diplomatic strategy. we have to be more proactive and work the back channel. >> a lot of hot spots. we'll talk a little north korea and pakistan later on. we'll dig deeper. molly? >> they could be the final murders of 2017. a gunman executing four people just before midnight on new year's eve.

investigators say the killer was related to most of the victims. and another family tragedy. ten minutes killed when their plan falls from the sky. new details on the investigation coming up.

>> ed: tragic news over the holiday. a teenager in new jersey accused of killing his own relatives in their homoments -- moments before midnight on new year's eve. it happened in long branch, new jersey, 25 miles south of new york city. prosecutors say the teen's brother and grandfather escaped without getting hurt and police arrested the suspect. investigators say the family legally owned the gun that he used. no word yet on a motive. meanwhile, officials say the man that opened fire on five sheriff deputies in colorado killing one of them, was an iraq war

veteran. they identified the gunman as this man, matthew rio. he fired more than 100 rounds at officers yesterday while he was holed up in his apartment. he died in the shootout. investigators say they ranted online about the sheriff and a local police officer. >> molly: investigators say they're trying to figure out why a charter plane crashed killing ten americans. officials have not released the names of the officials on board. a family outside new york city says five relatives died in the crash. it happened in costa rica. an aviation official says the plane went down soon after taking off from a northwestern city heading to san jose. laura ingle is live with more. laura, we're already learning more about the family that died in the crash. >> we are, molly. we're learning more about another family. this is just happened in the last few moments. we've been able to verify this. let's start with the family we've been talking about most of the day. one family of five from new york

and then a family of four from florida were among the victims. bruce and irene steinberg of scarsdale, new york said they were looking forward to taking their sons on an adventure through costa rica. the family was also known for being very involved in philanthropy and a local jewish community. the steinberging were on the last stop and headed to costa rica's capitol when the crash occurred. we just learned the identities of four more americans, a family from florida. leslie and mitchell weiss and their two children. the u.s. state department confirmed that multiple u.s. citizens died in the crash. we still have one more to identify. they're not sharing that additional information at this time out of respect to the families. the investigation into the cause of the crash continues today. investigators on the scene, molly. >> molly: what are we learning about the company and its safety records? >> we've been looking into the records of nature air, the

private airline that operates these charter flights. turns out this is the second fatal incident in the last few months for this company. 12 people lost their lives when a cessna 208 b, grand caravan aircraft, went down in a wooded area after take off yesterday. an eye witness on the ground told one news agency said she saw the plane take a nose dive after making a hard left turn. in september of 2017, an american and another passenger died on a nature air flight. the plane crashed minutes after taking off as well. reports of strong winds in the morning. forced a change in the itinerary. aviation officials had this to say. >> the plane from the accident had recently been authorized about a month ago. so it was within the certification to operate as an airliner. for a plane in this case, the doomed plane, to be duly registered, it goes through an inspection for air worthiness and functionality that permits

operations such as those it was carrying out up until today. >> we've also learned the pilot said to be experienced in yesterday's crash was the cousin of the ex-president of costa rica. much more to learn on this developing situation. back to you. >> molly: a very sad story. thanks for staying on top of it. >> ed: a top republican ripping into the justice department for not releasing documents in the russia probe. our next guest says the doj may have a good reason but raising the question what are they try to hide? >> molly: a subpoena from congress could be easier said than done. that's ahead. i'm a road flare. laying here so traffic can safely navigate around this broken-down rv. really? a road flare? it's my new year's resolution. now i'm all about safety and stuff. you're not even going to try to

catch something on fire? no...no i'm not. i'm going to miss you, man. yeah. i'm going to miss me too. ♪ went to ancestry, i put in the names of my grandparents first. i got a leaf right away. a leaf is a hint that is connected to each person in your family tree. i learned that my ten times great grandmother is george washington's aunt. within a few days i went from knowing almost nothing to holy crow, i'm related to george washington. this is my cousin george. discover your story. start searching for free now at ancestry.com

we know life can be hectic. that's why, at xfinity, we've been working hard to simplify your experiences with us. now, with instant text and email updates, you'll always be up to date.

you can easily add premium channels, so you don't miss your favorite show. and with just a single word, find all the answers you're looking for - because getting what you need should be simple, fast, and easy. download the xfinity my account app or go online today. >> ed: the republican chairman of the house intel panel slamming the justice department over the russia investigation. california congressman devin nunes accusing the agency of ignoring his committee's subpoenas for documents relating to the so-called trump dossier. an unverified collection of opposition research linking president trump to russia or trying to. catherine herridge live in washington with more. how are you? >> thank you, ed. the justice department and fbi are under new pressure to meet a wednesday deadline to comply with the request for records and

witnesses from the house intelligence committee. in this two-page letter, devin nunes writes that his investigators have been waiting for months and the congressman pointed to the anti-trump text messages september by fbi agent peter strzok to and fbi lawyer with whom he was having an extramarital affair. the circumstances surrounding strzok's removal from the investigation were leaked to the media rather than briefed to congress. doj and fbi intransigents is part of a behavior that can no longer be tolerated and saying the watchman should be investigated in this case, ed. >> ed: we're learning more, at least over the weekend, about the russia investigation's timeline. what do we know about that? >> "the new york times" is reporting that george papadopoulos told australia's top diplomat the russians had

damaging information on hillary clinton. two months after the meeting, wikileaks posted hacked e-mails and passing information about papadopoulos, who is there on the right, and his claims to u.s. intelligence. based on our reporting here at fox news, the timeline may be more nuanced. in april 2016, fox news reported on the obama administration's extradition of a romanian hacker known as gussifer and he was sent to alexandria, virginia. he compromised an e-mail account of sydney blumenthal in 2013 and it was through that hack that the clinton's use of an unsecured personal server first came to light. the times reports that the papadopoulos meeting was another piece of intelligence separate from the trump dossier that led the fbi to open the russia probe. but it's important to emphasize in 2016, it was well known to the fbi and justice department that the hacker gussifer was using proxy servers in russia to

hide his activities. >> ed: thank you, catherine. >> you're welcome. >> molly: a lot to impact here. let's bring in troy slayton, former prosecutor. happy new year. thanks for being here to talk about this subject, the unfolding matter that seems to keep going. >> great to be here, molly. >> molly: let's kickoff with what devin nunes is trying to accomplish. a wednesday deadline looming. he wants the information from the department of justice and wants to get to the bottom of the dossier subject, what it was used for, when it came to the hands of the fbi. will he get the answers he's seeking and will he see them this week? >> well, he might or he might not. congress has the -- not only the absolute power but the duty to conduct oversight over the fbi and the department of justice. so if the fbi and the doj are

not willing to voluntarily turn over documents and other materials related to anything that congress wants to find out about, then they issue subpoenas. there may be good reasons for not supplying with the subpoenas, that there's classified information, it affects national security. that there's an ongoing criminal investigation like there is here. you cannot respond. the problem is, that if they just don't respond and congress wants to enforce the subpoena, they have to go to the doj. doj lawyers aren't going to court to seek a remedy or contempt against themselves. >> yeah, what about that? a possible contempt of congress. you mentioned this is a big complicated web. could we see some sort of action taken if they don't see what they want to see by mid week, by the 3rd? >> that would be the remedy normally under the normal course for congress then to ask the

justice department to file contempt proceedings in federal court. but here it's the justice department itself that is not complying. if the reason why they're not complying is a question about national security or classified documents, there are ways to handled that, especially with the intelligence committee. they have secret rooms that they're able to share information with the congressmen and women without having the worry that that information will be largely disseminated. >> molly: let's shift to "the new york times" report that this former aide to the trump campaign, george papadopoulos and they had this drunken conversation in may 2016 speaking with australian diplomat and he knew that the russians had dirt on hillary clinton and ultimately that diplomat passing information on to the u.s. intelligence. the idea behind this report is that hey, maybe it wasn't the dossier, it wasn't the dossier. this came first, the conversation came first.

does it matter how the fbi got this investigation started? the political sides seem to really want each estimate to matter but does it matter from a legal circumstance? >> well, it may. because if the sole impetus to start this investigation was this largely discredited steele dossier that looked like it was funded by the clinton campaign, by the dnc, then that provides a problem. it looks like it was the dnc that paid to have an investigation of the trump campaign. but if there are other more innocuous reasons why the investigation was started, that provided the probable cause for the fbi to seek the fisa warrants that may have provided legal grounds for surveillance on trump aides, then that is a

really big deal. >> molly: so the repercussions in essence. it wouldn't change the actions that were taken regarding the dossier, if the dnc and the clinton campaign still paid for everything that went down and ultimately led to creation of this dossier. it doesn't change the actions that were taken by those people, those individuals, right? >> absolutely. you can't unring the bell. the investigation is started. so whatever reason the investigation has started, we're far down that path. a special counsel has been appointed, mueller is conducting the investigation. and although there are arguments and good arguments coming from republicans about the independence of the special counsel and some possible app r appearance of impropriety that may be involved with the prosecutors, the investigation is underway and is going to go forward.

>> molly: a lot of digging to be done. the chicken or the egg, which came first. hopefully in the end we'll get the answers. thanks for joining us today. >> thanks, molly. >> ed: kim jong-un claims he has a button on his desk that would let him nuke any spot in the u.s. serious stuff. >> molly: that was part of the north korean dictator's annual new year's message. he says he wants to talk with south korea about the winter olympics next month. could that mean that he's down to make a deal? it's the top story. bottom of the hour on this first day of 2018 from america's news headquarters, we're fox news. it's the phillips' lady! anyone ever have occasional constipation,diarrhea, gas or bloating? she does. she does. help defend against those digestive issues. take phillips' colon health probiotic caps daily with three types of good bacteria. 400 likes? wow! try phillips' colon health. eight hundred dollars when wet switched our auto and home insurance. with liberty, we could afford

a real babysitter instead of your brother. hey. oh. that's my robe. is it? you could save seven hundred eighty two dollars when liberty stands with you. liberty mutual insurance.

>> kim jong-un says the nuclear button is on the table and he could hit the u.s. with a missile at any moment. the north korean dictator spoke at his annual new year's address. north korea's nuclear arsenal is now a reality and claims the entire u.s. mainland is in range. it comes after the country ramped up missile launches last year. rich edson has been so diligent. what is the latest? >> molly, the message from kim jong-un is that north korea can hit the united states with nuclear weapons and that north korea seeks peace in the region. in his annual new year's

address, kim jong-un said "when it comes to north-south relations, we should lower the military tensions on the korean peninsula to create a peaceful environment. both the north and the south should make efforts. he suggested discussions on the possibility of north korean sending athletes to participate in the winter olympics in south korea. the trump administration's policy, isolate north korea, convince them to halt missile and nuclear tests and has pressured nations to cut their economic ties with kim jong-un. the administration says they will negotiate with kim jong-un only when they change their behavior. south korea says they will speak with north korea and analysts say kim's talk of peace is an attempt to separate south korea from their ally, the united states. the security council continues sanctions north korea. china has supported the measures, though blocked stronger ones. the u.s. says china has helped on north and they say they need to do more.

china and russian say they want the united states to suspend joint military exercises with south korea. the u.s. says they refuse to stop the maneuvers. molly? >> molly: the u.s. is holding back aid to pakistan. >> the national security council says the u.s. does not plan to spend the money budgeted in aid for pakistan. the official says the u.s. expects pakistan to take decisive action against terrorists and militants within its borders and that will determine whether the administration will restore funding. president trump tweeted this morning pakistan has taken u.s.' assistance and in return nothing but lies and deceit. pakistan says they will reply to president trump's treats shortly. last year, the president called

on pakistan to address terrorists hiding there. pakistan has maintained their forces have cleared terrorists within their borders. the u.s. says pakistan focused on terrorists attacked its government and extremists continue to hide in pakistan and launch attacks on coalition forces in afghanistan. molly? >> rich, you have covered an incredible amount of ground for us today. thanks so much. >> thanks. >> ed: let's bring back our political panel, vincent, former campaign manager for george pataki and david maury. david, i want to start with you. you mentioned pakistan earlier in our conversation. while you're a democrat, seems you were fair in saying that president trump may have a point here. democratic and republican presidents alike have been pouring money to pakistan with the hope the prayer that maybe they would help news the war on terror. but they clearly have not done enough. >> no, it's time to reboot the

strategy. even president obama had his doubts about the pakistani leadership. looking at the situation, i will note that when he took out osama bin laden, nobody notified the government in advance. i don't see what is wrong with a reboot. pakistan is important. we need to do it strategically. >> ed: vincent, a lot of people, even some republicans, not just democrats, mocked president trump as a candidate for positions of shaking up years and decades of american foreign policy. when it comes to pakistan, fresh thinking. whether this is the right approach or not might be needed. >> absolutely. hopefully in 2018 we'll see the foreign policy of donald trump materialize. ed, you've covered politics for a long time. we've had the slogans, country first, america first. we're finally seeing that materialize under president trump. we've had $33 billion go to

pakistan over the last 15 years. my hard earned tax dollars. what was the return? they weren't even notified when they found osama bin laden there. where was he? he was in pakistan. they refused to turn over another terrorist captor earlier this we're. we're not dealing with an honest broker and it's time that america starts getting our return on investment and use the carrot and stick appropriately. >> david, i promise to get to you on north korea earlier. i remember some months back when president trump talk about fire and fury, everybody grabbed their chins and stroke it and said that might have been tough rhetoric. now china is still shipping oil to north korea despite all of these wise people saying china is so important, they're going to help us diplomatically. what are the president's options

moving forward? >> ed, as you said, there's mixed messages from kim jong-un's new year's speech. on one hand, he talked about reaching out to south korea via the winter olympics. on the other hand, mike mullen not known for hyperbole said we're closer to nuclear war than ever before. i think we have to reboot that relationship. i think the trump administration has begun to do that. secretary tillerson gave a very good speech saying we have to ramp up diplomacy. let me may a key point. three administrations have failed with respect to iran. there's no good option when it comes to north korea. you can't ignore them, starve them, destroy them or even negotiate with them. destroying them would involve some people think a trillion dollars and a million lives within the first days of a conflict on the peninsula. so there's no good option. what we have to do is get really smart, get realistic. it's unrealistic that the sanctions will solve the problem

and unrealistic to get north korea to give up their nuclear weapons given the rationality of that administration. i put "rationality" in quotes. we have to freeze the nuclear weapon try, deescalate tensions and create a moratorium. if they did that, there would be room for a treaty between south korea and north korea and the united states. that's what they want. the one carrot that could be interesting down the line. >> ed: vincent just as we see in i ran, the protests because in part the people feel like the government is not sharing the wealth and kim jong-un is starving his own people. you're not going to see protests in korea because he will likely kill protesters and suppress it, even stronger than what we've seen in iran. but what do you see with one minute to go here? what do you see as the president's best options in 2018 in terms of north korea? >> i agree with david. there's no good options. i'm very interested to exploring the blockade option to increase

pressure as it relates to the sanctions. right now they're not working. in order to put increased pressure or fortify the sanctions, the blockade may be necessary. there's no good options with north korea. >> not a lot of good options for this president. a lot on his plate for 2018. thanks for taking a look at it and happy new year. >> happy new year. >> ed: thanks to you both. >> molly: trans-gender people can join the u.s. military starting today. justice department officials said last week they would drop the legal battle over the proposed ban for now. president trump tweeted in july, you may remember, that he would not allow trans-gender people to enlist. but so far the courts have not sided with the white house on this issue. jennifer griffin live at the pentagon with more. >> molly, today trans-gender individuals can join the u.s. military if certain conditions are met and a doctor certifies that the individual has

completed medical transition and has been stable for 18 months. the u.s. military was forced to comply with a federal court mandate last month that goes into effect today. staff sergeant katie schmidt filed one of the four lawsuits pending against the federal government after president trump tried to ban trans-genders from serving. >> while i was recognized for my excellence at work prior to coming out, having to hide who i was prevented me from having full confidence as a leader and forging strong relationships with others in my unit. >> the white house has tried to reverse an obama era transition to allow trans-gender troops to serve openly in the military. defense secretary ash carter made the decision in june 2016. >> the defense department and the military need to avail ourselves of all talents possible in order to remain what we are now, the finest fighting force the world has ever known.

>> last summer president trump weighed in on the issue in a series of tweets surprising the pentagon. several judges have blocked the president's order after consultation with my generals and military experts, please be advised that the united states government will not accept or allow trans-gender individuals to serve in any capacity in the u.s. military. our military must be focused and decisive and overwhelming victory and cannot be burdened with the tremendous medical costs that trans-gender in the military would entail. thank you. today's decision does not change the status of those already serving. there's other cases winding their way through the courts, molly. >> molly: the legal battles are not over yet, right? >> yes. they could go all the way to the supreme court at some point. meantime, the justice department decided not to appeal a recent court ordered stay and defense secretary mattis has ordered a group of experts to review the impact of trans-gender troops on

unit cohesion, a review being lead by an obama era appointee. mattis will report to the president on its findings in february and the president must make a decision by march 23 about how to proceed. bottom line, today if a trans-gender person has a medical professional certify that the individual has been stable for 18 months and completed all medical treatment associated with gender reassignment, that person can enlist in the u.s. military for now. molly? >> molly: thank you. happy new year. >> ed: happy new year. the new tax law could mean big bucks for independent contractors. we'll talk it over next.

your brain changes as you get older. but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember.

>> ed: and supreme court chief justice john roberts calling for an evaluation of how the judicial branch handles of allegations of sexual harassment.

saying the courts are not immune to the problems in the workplace that we've seen in other sectors. after a california judge abruptly retired following a "washington post" stories detailing several accusations of sexual misconduct. >> molly: you might save a load on your taxes if you become a contractor. under the gop's tax plan, folks can deduct 20% of their taxable income if they are independent contractors instead of employees. that mean you could lose health insurance and other benefits. daniel is a certified public accountant. thanks for being here. >> thank you, molly. >> molly: i want to kick things off. this new tax code, the reform the way it's written, does it incentivize people to leave their employers and strikeout on their own and exactly how it works? >> absolutely it does. so the pass-through entities like being a sole proprietor or

being an s corp allows you to pass through your tax income. the new tax deduction has created 20% of your income is a free deduction. right there is an incentive for people to go from being an employee to being an independent contractor using a pass-through entity-type. >> molly: 20% is a big deduction. so i'm sure people will think about that. that could save me $10,000, $15,000. at the same time, striking out on your own can be expensive, especially when it comes to healthcare. right? there's things to think about. >> yes, there's an offset here. if you're no longer an employee, you're no longer going to get those employees benefits like medical, overtime, like sharing in profit sharing plans if your employer offers that. how about this? if you lose your job, if you're an independent contractor, you can't collect inemployment.

so there's an offset to that 20% benefit, and you have to sit back and think about is it the right move. >> molly: who would it be the right move for? what should think about this? who will it benefit? >> well, the irs has specific rules about this. it's not just oh, i want to become an independent contractor or a company deciding we're not going to have employees anymore. we're going to have independent contractors. so it comes down to what is called control, the control rule. that is what the the irs uses as a guideline. if the employer controls the employee, whether they're classified as an employee or an independent contractor, you're supposed to be an employee. that's it. >> molly: how does this affect employers potentially? >> it's a windfall for employers. when you have independent contractors working for you instead of employees because of the things we just talked about,

the employer saves all the costs, which mean they can be more competitive in their pricing and more profitable at the same time, this is a windfall and an incentive for an employer to try this. again, the irs, this is not something that they want to see happen and they're going to look to enforce this a lot more stringently than they have in the past. >> molly: what about just society as a whole? if we see more people being independent contractors. that means fewer people are getting the traditional benefits that they would see at a corporation. is it good or bad. is it a matter of freedom and choice? >> molly: it's really a shift if you're an employee and there's certain advantages and disadvantages to being an employee. that's what that is. if your an independent contractor, you have the same offsets. i don't particularly think this will have a huge impact per se on society. i don't think everyone is just going to automatically run out and say to their employer, they, listen, i want to be an

independent contractor from now on. i think it will happen. but again, i must warn those people if they're going to do it, that the irs has specific rules and they're going to be looking for people to do this. >> molly: that was my final question. what would your advice be for people listening to you talk and go man, 20% is good. >> quite a carrot hanging out there. if your an employee, that shouldn't be your guideline. it's not something to say all of a sudden, you know what? i'm going to be an independent contractor now. let that be your guide. if you're already an employee, my recommendation is play it safe and stay that way. >> molly: thanks, daniel. it will be interesting. see what 2018 holds. >> thank you. >> ed: today marks the first day of legal recreational marijuana in one of the nation's large estates, a lot of people watching that closely. >> molly: they are. some folks may have to wait before lighting up. we have the reason ahead.

>> molly: all right. if you haven't gotten your flu shot, think fast. flu season started early and shaping up to be a doozy. 36 states are reporting widespread flu activity with

more severe symptoms than usual. health officials say your best bet is using anti-viral drugs as early as possible to treat the illness, if you already have it, of course and your best bet is prevention. healthy adults should get the shot. >> ed: meanwhile, it's legal to buy marijuana in another state. recreational weed now on sale in california to adults 21 and older. the state becomes one of six where recreational marijuana is legal. pot shops, stores are expected to open in maine and massachusetts later this year. but in california, folks in some cities may have to wait weeks before they have any local shops. maryann rafferty live in l.a. what's happening out there? >> the pot dispensaries that did receive a state license had to go through a long process that included a prove value by local jurisdictions and strict new rules for how it's sold. here's a live look at a

marijuana dispensary in santa ana, about an hour from los angeles. this jurisdiction got their act together to make sure stores like this one could open today. lines here have grown steadily. stores expect high public demand. >> something to show some light to where it is not necessarily negative. just like anything, it's something to take with responsibility for. >> she also likened pot to cigarettes or alcohol. >> ed: what kind of changes do they have to make to get up to code? >> the owners used to selling medical marijuana will have to completely repackage most of their product. everything must change, including outside packaging, see-through bags. they're now prohibited. for the first time, owners must

by tax on every sale that will get passed on to the consumer. cannabis sales have been legal in colorado for the past four years. supporters say in spite of early stumbles, government regulation works. opponents argue rocky mountain highs are big trouble. >> we've seen when that use increases is things like the traffic fatalities increasing. the use obviously abused and adults increasing. we also look at things like hospitalization and homelessness and whole other realm of things that are unintended consequences from this legalization. >> driving while high is still driving under the influence. ed? >> ed: appreciate it. happy new year. >> molly: another new law kicking in today means big changes for pet owners. how it could affect their furry family members. that's next on america's

headquarters.

>> ed: as we just noted, lots of new laws taking effect around the country. foxnews.com has a good list if you want to check it out. >> molly: here's one for pet owners in illinois. judges can treat your pets like children during marriage battles. alaska has a similar law in the books. keep in mind the next time your scolding your pet. could come back to bite you. >> ed: oh! you knew you had to do that. >> molly: i like it. >> ed: do you feel bad that you got to hang out in the studio like this while i was braving the elements with superman? >> molly: i did not feel bad at all. as i walked to work, i was like it's cold. >> ed: lasted like three

minutes. the walk. >> molly: it was -- it was a brutal three-minute walk. you said it. a couple hours. >> ed: great working with you. happy new year. >> molly: great way to start the new year. >> ed: "your world" is next. trish regan in for neil. >> a record year for stocks and for your money. will the bulls keep running or could we see a bear attack in 2018? hello. i'm trish regan in for neil cavuto. happy new year. this is a special edition of "your world." the markets rocking in 2017. closing out their best performance in four years. the dow setting its most record highs in a single year ever. let's go to fox business network's gerri willis for how we got here and what we can expect. gerri? >> it was a happy year with stocks surging to their best performance. >> 2017