>> harris: breaking news. moments ago, hunter biden, son of the president of the united states, has changed his plea to guilty in his tax trial that was set to begin next week. the development comes as jury selection was just getting underway today in los angeles. the president's son is charged with nine counts of tax fraud, three of those are felonies, maximum prison time at this point would be 17 years. word is they are talking about it behind the scenes. he's got a little bit of leverage by pleading guilty. this is "outnumbered." i'm harris faulkner with kayleigh mcenany and emily compagno. also joining us, anchor and executive editor of "the story," martha mccallum. former deputy assistant attorney general, uc berkeley law professor, former law clerk for clarence thomas in first timer on the "outnumbered" couch, john yoo. at least first timer in 2024. jonathan hunt is in los angeles. we will start with him.

jonathan. >> harris, i am so happy that you have john yoo, one of my favorite people in the world, on the couch today because this seems complex, the first indication we got this morning that this might be an unusual day was the fact that hunter biden, for the first time during any of these hearings that he has been present at this downtown l.a. courthouse, arrived publicly. instead of being driven into the underground garage as he has every other time i've been here, he arrived out front today and walked into the court. he was with his wife melissa flanked by abbe lowell, one of his lead attorneys. then we thought, what's going on? this is extremely unusual. just about 10 minutes ago we got word that he has decided, hunter biden, to change his plea on those nine tax evasion charges, three of which as you rightly point out, are felonies, to guilty. as we understand and this is

where the expertise of john yoo will be so valuable, this is what's called and offered plea. the person accused of the crimes admits but yet at the same time search their innocence. to a layperson like me and most of our viewers, that sounds completely contradictory but john will explain exactly how that works. one of the thing we understand that has to go up the chain at the doj, possibly all the way up to attorney general merrick garland for approval. all the details apparently are now being worked out. court is in recess until 11:00 a.m. local time, that's 2:00 p.m. eastern. one very important fact i think we should point out is that the lead prosecutor in this when they were told that the guilty plea was being entered, they said "this is the first we are hearing of this." apparently there is no effort to make a deal beforehand.

hunter biden's team just decided unilaterally that they would change the plea to guilty. i'm going to hand it back to you and the valuable, invaluable john yoo to break that all down. >> harris: your introduction of john was so much better than mine. jonathan hunt, thank you so much. john, i want to get your initial reaction to all of this. i don't think it's a shocker. i don't believe those attorneys would have even thought it was possible. there were some things that were different today, like he showed up. >> john: i'm actually surprised because it looked like they were going to go to trial. >> harris: really? >> john: looked like hunter was going to go to trial because he wasn't willing to plead guilty. usually the justice department will offer you a pretty sweet deal if you played but if you go to trial they will throw the book at you. this is a political context where -- on this day the special counsel is going after trump all guns

blazing despite being smacked back as hard as you could be by the supreme court and you're going to see hunter biden maybe get a very sweet plea deal from the very same justice department. i think it's all an effort to remove l'affaire as a political issue by the biden-harris administration. >> harris: let me talk about the potential for plea deals and sweetheart deals. he has seen this fall apart at least in one case with his gun trial. 17 years potentially would become what? >> >> john: i think you could say one to three years. i would be surprised if the justice department let him get away with no time served at all. someone who didn't pay a million dollars in taxes. you mentioned the sweet plea deal he got for the gun charges. there's another $20 million. whistle-blowers say came from foreign sources and to hunter he still could be investigated for

being a foreign agent. there's lots of things he could still be investigated for. >> harris: that door was open on the foreign agency. >> is also possible under whoever wins the next election. that's why i think he might be as jonathan said, and thanks again, jonathan the wonderful things. my first time on the show and he put all this pressure on me. >> harris: when i question about how surprised he would be, nothing surprises me about this man. kayleigh, we were talking about it off camera, this guy has ability to what? >> kayleigh: to stun. we didn't think he was going to show up for his capitol hill parents. then he showed up. >> harris: the documentary crew and the whole thing. >> kayleigh: i am stunned by today. he just randomly decides to change his plea and we heard

jonathan hunt say this was a unilateral decision. seems like a bold one. you have failure to pay taxes, failure to file, i imagine your lawyers would've said "you're going to get charged and you're going to get the book thrown at you." you need to do something. why today make that change unilaterally? i don't know. >> john: shows you how unbreakable hunter is. he's not listening to his lawyers. his lawyers would've said get a plea deal early, never go to trial. offer up something in exchange for a short amount of jail time. that's the best he could possibly do now. >> harris: but this is spectacle he's got a documentary to film reportedly. >> martha: i'm just sitting here nodding listening to your wise input. great to be with you in person, john, as well. hunter loves drama. he has been doing this to his family his whole life. he thrives on this.

i don't know if he woke up this morning or if he planned this a few weeks ago but he may have listened to the same legal podcast i listened to which basically said he's going to be convicted. he had a terrible case here. mike gaddis, having covered this, is he's been pushing back. not settling, not looking for a deal, not guilty. then he realized he is likely to get a very long sentence. when it's a choice between a very long sentence on a shorter sentence but you're talking jail time, i think he probably decided he would go with a shorter sentence. he also has the potential to be commuted by his father, who said clearly that he wouldn't do that. he is now in a different boat. he's not running for president anymore. we know how much he loves his son. we know there was a tremendous amount of stress on the current president over this issue, that he worries about his son.

the man has been worrying about his son for how many years? these issues he's dealt with over the course of his life. i think there is drama. there's hope of a shorter sentence potentially a commuted sentence. and maybe some leniency in these other cases if he comes forward and says i have paid what i on i want to do my time. >> harris: let's talk about commutation versus pardon then and any of this can happen. you get talking point. wouldn't be a convicted felon if he was going to jail on these charges. we don't know about the gun case yet. >> emily: i don't foresee a pardon. it would be important for president biden to maintain at least publicly that he believes in taking responsibility for one's actions. a commutation would be far more likely. i have spent dozens and dozens, likely hundreds of hours and minimum security detention facilities.

the longest sentences among that group are ones who went to trial for tax evasion. when hates paying taxes. people hate more the guys that didn't pay them. we all pay hours. the ones who have those tolerable substances are ones that took the plea. their duration is taken hunter to accept that plea speaks to his hubris. i'm sure he thought somehow daddy would get him out or somehow he would escape responsibility as he has entire life but up until the 11th hour, that's when these defendants really start sweating when they understand what's facing them. he said fine. i'm surprised by the alford plea. it's reserved for more physical criminal crimes. usually used in death penalty avoidance cases. i have seen it also with inmates who are obviously innocent, who now the d.a. says we will retry it and they say just get me out. they taken alford plea and they say fine, i'm taking the guilty

plea because it allows me to accept freedom. i've never seen a privileged text case defendant. an alford plea is the same as the actual plea of guilt. it enables him to save face in his cocktail parties. final point, thanks to president trump, that means after a certain amount you are eligible for a much greater reduced sentence in the form of the volume of days that you were in the past number one, number two you have to have a minimum sentence that triggers your eligibility for those sentence reductions. i foresee that he at least gets 24 months and one day because that will trigger his eligibility to be able to be released sooner and to be able to participate in those prison programs. does a lot of math and logistics now involved. welcome, hunter biden, to the bureau of prisons. you will not have assigned an inmate number.

>> kayleigh: wow at on that note, let's bring in fox news contributor and constitutional scholar, professor turley, how often do you see a case where a client is charged with failure to pay in three years. '16 come '17, '18. failure to file. two felony counts of filing a false return. pretty easy to prove. but reject any plea deal, go to trial. litigated and then bam, you change your plea deal, you change your plea, how often does that happen. >> it's not uncommon to see plea deals occur before transmitting this case, many of us have been writing for months that hunter biden was perfectly insane not to plead guilty. timing is important. you can get a better deal if you plead early rather than late. it's sort of like waiting for the water to reach the deck on the titanic before you ask about

swimming lessons. it's a little bit late for some of those options. he really has succeeded in putting himself in the worst possible position in terms of a plea. it's a penalty for a lawyer standing in federal court in telling prosecutors "just rip it out." that's what happened when the judge raised concern about this sweetheart deal and the prosecutor admitted they had never seen a deal like this being offered to a defendant. in the defense to the table over and said we are not going to cooperate. department of justice later said that they still wanted to get a plea with hunter but they blamed the defense for its position. there is a lack of intelligence design. in some ways you can say it's a game of chicken.

by pleading guilty on the eve of the trial, you don't have much to trade away. >> kayleigh: here's what's interesting. the incentive structure is for hunter biden to plead guilty with this plea deal before the trial date. a normal defendant would have taken that. maybe a normal defendant whose father wasn't president of the united states. when something is inexplicable, you look for the most rational thing you can conclude. is he having behind-the-scenes conversations with president biden who says no, i'm not commuting. i'm not pardoning could you better do what's best for your future. and i'm asking you to speculate but this is really inextricable. >> this is a very long learning curve. they were repeating the same defenses that collapsed in delaware. this defense that "i was a drug user and therefore i did all these things, from gun charges to tax evasion for years,"

really didn't pass the smell test with jurors. having more difficult time in this case. the chance they had was the gun case and dialer which is a limited period of time. in this case, you have hunter biden hitting up people for millions, influence peddling, citing his father, even threatening people that his father was sitting next to him. those tapes, those communications did not look like some junkie on the street trying to score another hit. they looked like a very sophisticated businessman in what may be one of the largest influence peddling schemes in history. >> kayleigh: will this have any bearing on those three convictions? is a totally separate, inability to fix those in any way, shape, or form? >> this is another problem with waiting too long. he is now convicted --

a convicted person. he's going to go into sentencing with a record. that never helps. i think it would be very strange the department of justice after all of this history not to seek some jail time and if they seek jail time, they'll get it very likely from this judge. that may ultimately prompt the president to pursue a pardon or commutation. will have to see. the odds at this point favor jail time. they didn't win the justice department was still in favor of a plea agreement after it collapsed. i failed to see why this defense strategy was in mind. it does not seem to have worked out particularly well for hunter biden. >> kayleigh: if this is an alford plea, wouldn't have to get approval from the highest levels of the department of justice. that would mean attorney general

merrick garland. >> he would. i would expect would likely get it. how that would play out in the politics of the moment is rather uncertain. as you've noted, i think you're correct that most people really don't see that he wants. i'm entirely convinced that if he reserved the right to appeal he has anything to appeal on. his defenses were a series of hail mary plays that just missed by a mile. i don't see any real appellate issue. this tax cases open and shut which is my back in 2023, i said you truly have to have a legal death wish not to plead guilty to these charges. it's easiest type of case to bring. as you noted, jurors don't look kindly on very wealthy people not paying their taxes. because they pay their taxes.

>> kayleigh: professor turley, thank you very much. what a day. >> thank you. >> harris: we are going to bring in fox news legal editor kerri urbahn who has been with us for all of this breaking news for the last plus hour. we are waiting to see what this is going to turn out like and you are probably listening to jonathan turley, this is my favorite part of what he said. "he must've had a legal death wish to even get this far." time served, which emily compagno mentioned, and the money that was spent on this which martha hinted on the drama this guy brings to his family. this could have bent over in a few minutes had he just said yeah, i did this thing. he ended up saying "yeah, i did this thing." >> that's right. high drama. hunter biden is at it again, that was the first thought ahead, similar to martha what i saw the guilty plea. i think the drama is going to continue this afternoon and here's why. department of justice does not like when things are sprung on

them. according to our producer inside the courtroom, leo weiss, the lead prosecutor on this case, is saying he had no idea this was coming. that does not sit well with doj, especially with something that has such high stakes with the department's reputation. they have become aggressive on this because they have to rehabilitate their invitation after giving him the plea deal of a lifetime that fell apart. so you have a doj that wants to redeem itself and now a doj that feels probably like it's being jerked around by hunter biden steen because they have been, let's be honest. and this alford plea, i have to agree to and the alford plea would be that he pleads guilty but maintains his innocence so i'm not convinced this is not going to go down without a fight. does it mean were not going to get there. going to have some frustrated doj attorneys in court talking to the judge. >> harris: what could the fight look like? he says i'm guilty and you're

right, with the alford i guess it's like "i'm not guilty" but i'm going to lie in cim. that doesn't even make sense. >> that's the thing. it's the kind of plea saying that he'll take. given how the doj probably feels they've been treated, this is embarrassing for them to go into court and going to trial and say it never mind, we are not doing this, it's very embarrassing. in addition to the fact that they have messed this case up all along. i'm not saying that they won't get there. this is going to be a back-and-forth in the next two hours. >> harris: and want to bring in john yoo. john, if you have a question or something they would like to add, please. >> john: what possible issues would you appeal question mike that's the thing that's puzzling. why not just plead guilty and hope to get a good deal? this idea of preserving issues for appeal doesn't make sense. >> makes no sense and i have fought it was insane not for

them to plead guilty at the beginning. either you pay your taxes or you don't. it's really that simple. as emily mentioned, people hate paying taxes but they hate even more the guy who isn't paying taxes. what they hate even more is the get get-out-of-jail-free card fm your dad. it's the most unsympathetic situation in the court of public opinion and the court of law. none of this has made any sense. he should've pled guilty the second this happen. but again, as martha mentioned earlier, he loves the drama. >> john: this is just tax evasion, right? isn't it the case where this is not over for hunter either. unless he gets a full spectrum pardon, not a commutation, a pardon, he could still be investigated for all the things he's allegedly done. >> that's true. but i think the issue there is that i think there's a high

possibility the statute of limitations has run. there was reporting some years ago he is being investigated by the department for not registering as a foreign agent as he was gallivanting around the world lobbying for foreign countries are not telling the government he was doing so. there's a statute of limitations on that unless he continues to be an ongoing situation, in other words if he was continue to do that right now for the same company. that could have passed and that's an easy, i think, way doj could have nailed him if they want to do and yet it seems they didn't, which is, you know, also an open question is why they didn't pursue that. >> harris: tried to get in the mind of hunter biden. good luck with that. kerri urbahn, thank you so much and wanted to get some closing comments on this from you, emily. >> emily: the concept that when your defendant in a large tax evasion case, you have multiple phases of attorneys. jury trial attorneys are different from.

pretrial attorneys. i have no doubt given the volume of resources available to hunter biden, we knew his attorney by name though of time. the teams are different. it's a different skill set. the notion and concept that this is perhaps a large surprise to the upper leadership at the doj seems to me that it might underscore a potential lack of communication. i wonder now at what level did the alford plea, was accepted and at what level where that might possibly, we might possibly get the message this was on acceptable, that was actually not on your to be able to accept. i wonder, it as it gets more fleshed out, we will see perhaps that reverberating throughout the prosecutorial team. >> harris: now you've got my attention. now i know that there's more to come here we are going to get to this breaking news. we knew it was coming and now it's happening. former president donald trump giving remarks of the economic club of new york. let's watch. >> we save the economy. we rescue tens of millions of

jobs and after covid i handed kamala and joe the fastest and strongest recovery ever recorded. not even close. 1.4% inflation. mortgage rate was at 2.4%. the highest stock market in history. this is despite the pandemic. i handed them back the highest the highest stock market to date after having just suffered with the rest of the world a pandemic the likes of which nobody had ever seen before. we did an incredible job. remember, far more people died of covid hunter biden harris than under president trump. many, many more people. we delivered an economic miracle which kamala and joe turned into an economic disaster. just like they turned the border and indeed the whole world into

a catastrophic surrender. starting on day one, kamala launched a war on american and energy. a nation wrecking border invasion with legal aliens pouring in from countries all over the world. they came in from countries that nobody ever heard the name of that country. those countries, from their prisons and jails, there's a difference. from mental institutions and insane asylums as well as record number of terrorist, human traffickers, and sex tra sex traffickers. numbers that we've never seen before taking place over the last three and a half years. then kamala cast the deciding vote on trillions of dollars in wasteful spending which together with their terrible energy policies gave us the worst inflation perhaps in the history of our country. nearly two-thirds of the jobs

created under the harris biden administration were bounce back jobs. bounce back. they were bounce back jobs. i headed them from before the pandemic. this happens with pandemics. you have bounce back jobs. the pandemic comes and it goes and those people go back to their jobs. just last week, joe biden admitted that on social media. i don't know if he knew what he admitted but that's what it said. i wonder who drew it. perhaps that person is no longer employed by the democrats. but right now it's even worse than that. under kamala harris' policies, 3 million workers are now missing from the job force compared to 2020. 3 million workers. that's a lot. over half a million fewer people have full-time jobs today than just one year ago.

100% of the net job creation in the past year has gone to illegal migrants. think of that. 100% of the jobs created under this administration has gone to illegal migrants that came into our country. joe biden and kamala harris formed the worst presidency and vice presidency by far in history of our country. this election will decide whether we reward kamala harris with reelection and four more years of crime, economic calamity, and international humiliation or whether we change that direction and once again build the greatest economy and history of the world which we had during the trump administration. kamala harris is the first major party nominee in american history who fundamentally rejects freedom and embraces

marxism, communism, and fascism. you're learning about this. you'll find out. nobody knew who she was. just a few months ago. they didn't know who she was. she's promising communist price controls, wealth confiscation, energy annihilation, repar reparations, the largest tax increase ever imposed, and mass amnesty and citizenship for tens of millions of migrants who will consume trillions of dollars in federal benefits and destroy social security and medicare. they will be destroyed. they are already putting them into your social security and medicare rolls. i'm promising low taxes, low regulations, low energy costs, low interest rates, secure borders, low, low, low crime.

surging incomes for citizens of every race, religion, color, and creed. my plan will rapidly defeat inflation, quickly bring down prices, and reignite explosive economic growth. kamala harris will take more money out of american pockets. my plan will leave the typical family with many thousands of dollars more than they have right now. first i will end kamala harris is anti-energy crusade and implement a policy of energy abundance, energy independence, and even energy dominance. we have more liquid gold under our feet than any other country, including russia and saudi arabia. we'll be using it. my plan will cut energy prices in half or more than that within 12 months of taking office.

it will be an economic revival of our country like no one has ever seen before. energy was what caused our problem initially. energy is going to bring us back. that means we are going down and getting gasoline below $2 a gallon. bring down the price of everything from electricity rates to groceries, airfares, and housing costs. that's why opec and the arab nations, very honored to have some of my friends here with us today from that part of the world, but they are working very hard despite being here that i not be your president. they don't like me. meanwhile, kamala harris can't bring down the price of anything because her energy policies are driving up the cost of everything. everything is up, way up. starting on day one, harris and

biden opened up the russian pipeline called nord stream two which nobody had ever heard of until i got involved and said what about nord stream two and nobody knew what i was talking about. largest pipeline in the world. russian pipeline. i had it close. it was shut down. putin was not happy. we shut it down. the keystone xl pipeline was shut down by them so they shut down the keystone and they immediately gave russia the right to start rebuilding the nord stream two with the biggest pipeline you've ever seen. we reentered the horribly unfair to the united states through them when they came back paris climate accord. so unfair to us. we pay trillions of dollars. other countries pay nothing. as soon as he came back, he went

back into it. i got us out of it and reduce the area of the federal lands available for drilling by 80%. if i was president, oil production today would be four times higher than it is right now. it would've been four times higher. right now we be doing four times as much. and remember, we had a perhaps e largest drilling site in alaska which everybody wanted to get approved, anwr. president reagan tried so hard to do it. they came in and their first few days in office, they terminated anwr, amazingly. the biggest drilling site we think in the world. bigger than saudi arabia. bigger than texas. we got it and they terminated

it. under the epa so-called power plant rule, more than 50 power plants have been shut down since she took office in virtually all coal-fired power plants will be shuttered in the next couple of years, setting the stage for catastrophic energy shortfall which we already have. that will make inflation far worse than it has ever been. they want to close down our power plants and we don't have power already. to address this dire energy crisis that kamala and joe have created, i will immediately issue a national emergency declaration to achieve massive increase in domestic energy supply. which are going to need. electricity is desperately

needed for ai. ai, controversial. got to be the top of it. we would need, hard to believe, twice the electricity that we currently have right now for everything in order to be dominant. and china is already building massive electricity producing plants. we haven't even thought about it. we will think about it and i'll get it done on an emergency basis so will be the leader in ai and every other form of technology. with the sweeping authorities, we will blast through every bureaucratic hurdle to issue approvals for new drilling, new pipelines, new refineries, new power plants, new electric plants, and reactors of all types. prices will fall immediately in anticipation of this tremendous supply that we can create rather quickly and we'll be the leader

instead of then laggard. second, to further defeat inflation, my plan will terminate the green new deal which i call the green new scam. greatest scam in history probably. $10 trillion scam that we waste, like throwing money right out the window. it actually sets us back as opposed to moves us forward. and rescind all unspent funds under the misnamed inflation reduction act which the democrats agreed after it was approved that it wasn't for that purpose. it was for other purposes, like giveaways. it kamala spent $7.5 billion to build eight charging stations. think of a charging station. like a fuel pump with electricity coming out of it. eight charging stations in the midwest for electric vehicles. cost billions and billions

of dollars. 7.5 billion they think but the costs are still going. three of them don't work, never will probably. given that, it's worked out quite well. i will end the electric vehicle mandate, stop the appalling waste and save taxpayers an estimated $1 trillion. third, i will launch a historic campaign to liberate our economy from crippling regulation. my first term i pledged to cut two old regulations for every one new regulation. we did much better than that, as i've said. over the past four years, kamala has added $6,300 a year in regulatory costs. onto the backs of the typical american family. think of that. stop that onslaught at lower prices, and pledging that in my second term will eliminate a minimum of ten old regulations for everyone new regulation.

we will be able to do that quite easily actually. instead of attacking industries of the future, we will embrace them, including making america the world capital for crypto and bitcoin. applfourth, at the suggestion of elon musk who has given me his complete and total endorsement. that's nice. smart guy. he knows what he's doing. he's -- he knows what he's doing. very much appreciated. i will create a government efficiency creation tasked with conducting a complete financial and performance audit of the entire federal government, making recommendations for drastic reforms. we need to do it. can't go on the way we are now. [applause] and elon musk, because he's not very busy has agreed to head that task force.

if he has the time. that would be a good want to do it. he's agreed to do it. in 2022, fraud and improper payments alone cost taxpayers an estimated hundreds of billions of dollars. as the first order of business, this commission will develop an action plan to totally eliminate fraud and improper payments within six months. this will save trillions of dollars, trillions. it's massive. for the same service that you have right now. trillions of dollars is wasted, gone. nobody knows where it went. further taming inflation and bringing prices way down. the fifth pillar of my plan is to make the trump tax cuts permanent. there massive tax cuts, biggest ever. permanent. and to cut taxes even more. and we will have no tax on tips.

something which they copied four weeks after i said it. she got up and said no tax on tips. i said "i just said that." she is copying a lot of my plan. we're going to send her a maga hat. we are having a special one made. we also know she doesn't mean it. she's going to stick with what her whole life has been about. and also, no tax on social security benefits. people on social security up and wiped out by inflation and on top of it we tax their benefits and we are not going to tax their benefits. we have so many different ways of making so much money, this country, the potential is so incredible. we don't have to take it away from people on social security. we are not going to do that. we're going to save social security. she's going to destroy social security. under the trump administration we proved targeted tax cuts do not increase the deficit. they reduce the deficit by growing the economy and raising revenue. after we gave the massive tax

cuts, we took in the following year with a much lower rate, billions and billions of dollars more than we did the higher rate. with a much lower rate we took in more money because people were incentivized. corporate tax revenues are 31% higher today than before my tax law was signed. all of those cuts. to further support the revival american manufacturing, my plan calls for expanded r&d tax credits. 100% bonus depreciation, expensing for new manufacturing investments, and a reduction in the corporate tax rate from 21% to 15%, solely for companies that make their product in america. [applause] got to make our product in america.

if you outsource, offshore, or replace american workers, you're not eligible for any of these benefits. in fact, you will pay a very substantial tariff when a product comes in from another country that's made in another country and comes in. there will be a big tariff on that product. because we want to make our goods in america and most of them we can. my message is simple. make your product here in america and only in america. we are not going to be taken advantage of any more just as we made great inroads and progress four years ago, we made tremendous inroads on this subject. we are not going to watch our wealth and jobs get ripped away from us and sent to foreign countries, which is what's been happening for many, many decades. china was built on doing exactly what we are going to be doing and when i started doing four years ago.

what we are putting forward as the most pro-american manufacturing and jobs policy in modern history for any country. this plan will bring jobs and growth into our country at levels never seen before. every business on earth will flock to america from europe, asia, the middle east, all over the world. by contrast, comrade kamala harris wants to sacrifice our wealth, kill the economy, and drive jobs overseas to punish businesses. businesses believe. they will leave america. their international companies. they report to their shareholders. they will leave america if your plan, even in a small form comes to the floor. protects plans which includes a promise to end t the trump tax cuts which again by itself would

be a -- will increase taxes by over $5 million. it would result in the largest small business tax hike in history, massively raising taxes on 25 million small business people and raising small business tax rates to 43% and higher. in other words, 20% higher than communist china. kamala is also vowing to raise the corporate tax rate to 20 on percent. we are bringing it down to 15% but she is looking to raise it to 40, 45, or even 50%. you know that. all you have to do is follow her past path. radically raise the capital gains tax rate which she wants to do and they don't even want to give a number. for the first time ever impose a 25% tax on unrealized capital gains. if you happen to have a lot of

wealth but no cash. you're in a lot of trouble. this will lead america into a 1929 depression and it will be a depression and a territory we have not seen for a long time. there's a gentleman that happens to believe that, scott. the tax on unrealized capital gains will decimate the u.s. economy, companies and innovation for america to other countries. the stock market would be annihilated and investors assess the tax liabilities of large shareholders. seniors and senior pensions would totally go up in smoke. they would be worthless. these are not the policies designed to create a prosperous america. these are policies to turn the united states into venezuela on

steroids. even if for this reason alone, kamala harris must be defeated decisively this november. has to be defeated. cannot have her be the president of the united states. under kamala, the united states is becoming a third world banana republic. she and her party are censoring speech, weaponizing the justice system and trying to throw their political opponents, me, in jail. this hasn't happened. i didn't do that to crooked hillary. i said that would be a terrible thing, wouldn't it? putting the life of the president of the united states in jail. but they view it differently i guess nowadays but that's okay. they always have to remember that you can play the game. nobody ever thought this was possible. this is how you create massive

capital flight and turn one prosperous nations into absolute ruins. i will have no higher priority as president than to restore the fair, equal, and a impartial rule of law in america. we have lost the rule of law. who would have thought? [applause] number six. under my leadership, america will encourage domestic production instead of punishing it. as you know, our country's vast manufacturing wealth was created at a time with very little domestic taxation, few regulations, and most revenue came from tariffs from other countries. that was when we were at the wealthiest ever proportionately we were the wealthiest country ever during those days. that was before income tax came along. now we foolishly do the opposite. we impose lower tariffs and no

tariffs on foreign producers. we have the lowest tariffs of any nation in the world and we relentlessly punishing our own companies for doing business in america. you do business in america, you're punished tremendously. i have many, many companies come to me "sir, i can't compete. they are sending kitchen cabinets, washers and dryers, everything." every motorcycle, they are sending them here. we can't compete. i made it so they could compete and thrive, every one of those people. we should get them up and talk to you one day because every one of those people comes up to me and every time i see them, they hugged me. they kissed me. they love me. because i saved their busi businesses. i intend to reverse this model and once again turned america into the manufacturing superpower of the world. we can do that.

just with being intelligent. the key to this effort will be a pro-america -- >> harris: the former president of the united states giving a lot of detail about his economic policy and we want to dig into it now a bit. he is at the new york economy club. john yoo is with us today. john, you are talking a little bit about the venue and the importance of a conversation like this there. >> john: people might be surprised to see the nonrally trump appear. this is the serious trump here he's actually cussing serious questions of economic policy. this is one of the two areas along with immigration work trump really beats harris. so it's good to see them come out, i think, and lay out some really serious policies like making the tax cuts permanent, like trying to get rid of government waste. putting elon musk in charge of -- >> i think it might not be good for our economy to stop running private companies and spin his wheels in the quicksand of government but that's a lot of news to place a focus on.

he heard he's going to try to come back on regulation. if i were his director, i would go out and say i will return all regulations back to where they were when i was president and eliminate all the regulations under the biden administration. that could be a real spark plug for the economy. ethically heard a lot of very important substantive policies. >> harris: i'm going to pull out one of those that was the one thing that caught remarks and claps from the audience which she would mainly think wouldn't do that much because of the executive types and economic analysts who are in the room. martha, what would you say about this idea to put elon musk in charge of efficiency for the government. >> martha: this is an idea that was proposed by elon musk in the interview that he did with president trump. he said this is obviously something that is very important to elon musk and he looks at the waist in the government and it drives him insane. can you imagine what it's going to be like when elon musk opens the books at the department of

agriculture or education or any other building that takes up an entire city block in washington, d.c., and has thousands of employees and they are going to do a complete financial and performance audit of the federal government. i think one of the tricky things here is, this is the economic club of new york. these people were applauding. they want to see government out of business. they want is the government and small businesses have the freedom to operate without stacks and regulation. when you want to open a company, the amount of paperwork and redundancy in the paperwork that you have to go through to just get back door open is so expensive. that's probably more beneficial to most companies then giving them $5,000. >> harris: can i ask you to juxtapose if you can, come here is his idea of changing the deductions for small businesses. kamala harris' idea of changing the deductions of small

businesses. she wants to take the deductions from five to 50,000. it's going to take a lot of money to get it done but small businesses clearly are not succeeding the way they should. how does donald trump's plan to have more efficiency if you will, how does anything he is saying compete with that, compared to that? >> martha: you've asked the perfect question, as you usually do, harris. that's the problem politically. how do you say to voters "come along with me on this. let me explain to you how removing these regulations on how cutting down on government waste is actually going to make your life and your personal economy better." that's a tough thing to articulate your people here all, i get $25,000 for my first home. i get $5,000 if i have a baby. taken off of my taxes. those are tangible, easy things for people to understand. this is why this is what harris

is proposing. the job former president trump has to explain this in a manageable way and that's what he's going to have to do on tuesday night. what you're hearing over here is not actually going to make your life better. this is how i can do it. this is my five-point plan which he is just bringing up which i think is a fascinating comparison. >> harris: kele, the way he's doing it has garnered some conversation. it's not just tone and tenor but it's laying out a plan that is not at a rally. >> kayleigh: john, you framed it perfectly. you saw president trump. doing something i don't think, harris can. not that she can't deliver a speech which he can deliver a speech well but he's giving a 40 minute policy speed with detailed plans. most candidates have policy sections on their websites. kamala harris does not. most candidates have white papers they put out about their policies.

kamala harris does not. donald trump is laying out policy after policy. this financial audit. a personnel audit and the federal government and we've heard president trump talk about clearing out the deep state, these layers of federal bureaucracy. you need to add in someone like vivek ramaswamy to that mix. clean house alongside elon musk, who is doing the financial component. that's a very well-done speech. different tone absolutely. but it's not a rally speech. it's a policy speech. >> harris: i want to say what trump said about elon musk. "i will create a government efficiency task for a complete financial performance audit of the entire federal government and make recommendations for drastic reforms." elon, because he's not very busy, has agreed to had that task force." >> emily: when you set open the books, have to reference the amazing work of open the books. because of him and his legacy that we know so much about the

government waste fraud and abuse of our tax dollars. when we talk about shutting down the government, closing it down. it's our money they are operating with. there are 14,000 empty buildings that the federal government owns. i argue, i agree with you, sir, that we put shouldn't pluck elon musk. we don't need that. we just need someone with common sense to say here's what we are going to do with these excess buildings, these employees who are rotting away. the list goes on. i'll never forget as a federal attorney when i was tasked with cleaning house, figuratively. all of my protestations were falling on deaf ears. i was dealing with employees that were essentially taking a veg of our tax dollars that pay their salaries. it wasn't until i hopped on public transportation, printed out every single email from that particular employee because that's how they were using their time and brought it to headquarters. it was a stack like this big and

only then was our discipline and performance programs and the like approved. my point is you just need common sense. we don't need a genius. let's leave him in the private sector and let's bring out some common sense politics and anti-regulation and approach back to the government which step one is getting trump back in office. >> harris: that's really fascinating about how people use their time on the job. how you were able to make that a visual, to have the facts of the proof of that like a stack of emails. it didn't work against hillary clinton. [laughter] our coverage continues. major breaking news in the past hour and a half or so and that is that the son of the pres president, joe biden, his son hunter has offered a change of plea. he was going to fight this and now he says he's guilty of tax evasion. epic tax evasion. that was set to begin next week. the trial now won't happen. hunter originally pleaded not guilty. now he's willing to change that.

they develop incomes as jury selection was just getting started in los angeles today. and hunter biden is charged with nine counts of tax fraud, three are felonies. if you did the math on that, he was exposed to potentially 17 years in prison. maybe they will bargain it down. it's been a topic this hour. prosecutors say they had no idea about hunter's plan to change his plea. john, you've talked about that. it frustrates that matter for him. >> john: i think the real question now is how much time is -- is he going to serve in jail and is his father going to pardon him or commute his sentence? is this going to work in removing this terrible campaign against trump off the political discussion for the campaign? >> emily: max verify the alford plea, he's not pleading guilty, he is excepting his sentence while still maintaining his innocence. >> kayleigh: professor, you're

talking about the -- there's notes in the trump court room. telling trump's lawyer he looks arrested after a to which he counters life was a most meaningless without seeing you. enjoy it while it lasts, the judge warns. that seems foot on the gas. how do you think this bears on the trump lawfare. >> this is an unprecedented traffic for semaphore president has been tried. he is the leading opposition candidate for the presidency. this trial judges making jokes? that's a terrible image in a terrible precedent but i agree it seems to show this judge is going to continue practices trying to push this as fast as possible. all the many weighty objections the trump team has had. >> harris: to ask the obvious thing, why would a judge feel like she could do this in the first place? >> john: she is the queen of her courtroom. trial judges the king or queen

of the courtroom. just like you are here. >> harris: oh, no. no way. [laughter] john, we have seen so much that really takes the justice system down a peg. look at fani willis' case and what unfolded in georgia with trump at the heart of that. so many antics and all that kind of stuff. we don't need this. it doesn't help the justice system to have america's trust. why? i guess it's just a question. is it necessary? >> john: one of the most unforgivable things i think this administration did is they tried to use the power of criminal prosecution. one of the most important functions of executive branch to do in a neutral way and turned it tried to affect the election. they tried to prevent the people from going to the ballot box and making their own judgment about donald trump. trump just said that in his speech. one of the things that happened in the last four years as the rule of law has been undermined. it's going to take many, many years for our system to recover.

>> martha: gary shapley looks at this and says, this is what i said all along. this is a victory for him. he was the whistle-blower along with ziegler, his whistle-blower partner, they said there are felonies here and they were told by david weiss, u.s. attorney david weiss, look, i don't get to make this decision. this decision is above me, which he denied. gary shapley will be on my show later today and we will get his reaction to his all of what has happened and just one snippet of this. hunter biden wrote in his book about his antics in a hotel room, right? then he told the irs those dates and that hotel visit were work-related and that's why he deducted them from his taxes. so he's gotten himself into this mess and we will see exactly what kind of punishment is leveled at him. >> harris: that's a lot. obviously we are going to tune into "the story" with martha mccallum. once the first thing you want to

ask him? >> martha: how did you feel? after all of this, you hear the hunter biden is finally decided to plead guilty when basically he had nowhere else to turn at this point. he's deep into a corner. he has made it difficult for the doj, for his own attorneys, all the people who spent hours and time preparing for this, then he marches in there today. as you have pointed out, this story is not finished. we have to see if we agreed to this drama. not happy about the fact they didn't know this was coming. great to have everybody. we've had a lot of breaking news and we have showed you so much of the former president laying out his economic policy and that was good to watch. then all that's happening here we are all over the story. literally at 3:00 p.m. eastern with martha maccallum, as she also gets into the hunter biden news as well today. today. "america reports" now.

>> for four straight years i