>> going caffeine. coffee etf. as long as they keep trashing the dollar, like coffee. >> i don't even think juan valdez could get rich on this. >> "cashin' in" is next! [ applause ] >> cheryl: forget extentbing the bush tax cut for all. as tea party candidates surge in the poll, how about a fair tax for all? hi, everybody, i'm cheryl casone. welcome to "cashin' in." our "cashin' in" crew this week is wayne rogers, jonathan hoenig, tracy byrnes, along with xarly gaspa -- charlie gasparino. pick up his new book "bought and paid for." also this week, democratic strategist tara dardell. welcome to all of you. jonathan, you may get your wish this time. you have been pitching a national sales tax for years. the fair tax. it looks like you may have

it. >> we've been talking about a flat tax, fair tax as it's called on the show for years as you pointed out. now championed by the tea party movement, a dominant political force in the country. thank god it is! this would be a miraculous achievement for the country. it's fair. it treats each person individually. it doesn't have special breaks or treatment for this group or that group. easy to understand. my god, we spend literally billions of dollars every year just trying to figure out how to file your taxes. if charlie and i go to dinner, is it business dinner or personal? it's arbitrary. >> all business. >> exactly. all business. most importantly, it incentivizes production, not consumption. be in a resolution and would benefit the company. >> charlie has expensive taste, jonathan. i have to let you know. >> my heart is with you. but this is the longest of longshots. this isn't happening in our lifetime. >> charlie, it worked in estonia and lithuania and all over europe where it's been

tried. >> i know but estonia and lithuania -- >> let me bring in tara. this isn't necessarily that crazy of an idea. representative john lindher has 64 cosponsors for this. he introduced legislation, and that is a record for cosponsors on his side. >> actually, congressman lindher has been introducing this legislation since 1999. and since 1999, he has failed to get the amount of support needed to bring it forward. i'm not here to argue that we don't need to simplify the tax code. albert einstein famously said the hardest thing to understand is the tax code. but i think the problem with the fair tax is the devil is in the detail. while it may be simpler in terms of how it works, its implementation is extremely complex. you are talking about getting into areas, the 16th amendment, repealing the 16th amendment to make sure that it's not done along with the income tax, remaining in place. so there are a lot of

complexities here. there is a lot of economists that believe this hurts the middle class because it's progressive on the middle class. proposed by the congress. and regressive on wealthy people. the last thing we need is more policies that hurt the middle class. >> cheryl: actually, wayne, this is progressive -- it's a national sales tax, progressive for all. charge 23%. that is the proposal on the table. do you think it works, wayne? >> i don't know if it works. it has worked in europe. it's certainly a theory that is much better than what we've got in place now. you're right, tara, the devil is in the details. that's a problem we have in congress when they are writing laws that have 2,500, pages in them, you know, the healthcare act. they have no idea what they are voting on. >> that is shorter than the tax code.

>> cheryl: this would get rid of the i.r.s. no one crying over that. state collects revenue. >> but you still need an administrative body to do this. it's an administrative nightmare. many argue it will hurt seniors, not popular in the votes right now. do this smartly. we're making the decisions where we shoot first and ask questions later. >> it's worth considering. let me finish. the i.r.s. tax code needs to be overhauled. basically thrown out the window. you cannot dismember the i.r.s., because you are still going to need governing body to handle, albeit fair tax, flat tax or whatever else. >> cheryl: it would be one of the lowest tax rates, lowest proposal out there. >> this discussion is purely theoretical. it is never going to happen and it's a sidetrack. we know, anybody that -- most economists believe the bush

tax rates need to be extended. and we're discussing a fair tax. listen, this is a great theoretical discussion. jonathan, my heart is with you. but the political reality is we need to extent the bush tax rates to keep the economy going. >> that is fatalistic, terminalism. >> it's not. [ overtalk ] >> extent it a couple more years. >> think how smart obama politically was instituting the healthcare plan. this is a step in nationalized healthcare. we lose every time. people who want the fairer taxes when we swing for the fences with the absurd notions when we just need to think politically smart and gett the bush tax rate extended. >> you and i both know these guys can't figure out what they are having for dinner between now and the end of

the year. >> that's the point. kick the can down the road. >> do it smartly. >> do it smartly? a guy with a fifth grade education can understand flat tax. >> do it in january. that could be the first and only thing on their agenda. >> here is the thing. bring in tara. here is the thing, let me go back to what is happening in the country. tea party people support and bring this up. this is why it's getting more traction. voters seem to be from the primary are heading toward the tea party candidates who think this works. >> here is the interesting thing. here is my problem with the tea party. fair tax is a sound bite that sounds good and people are glomming on to. but there is a respectable bill in congress right now a bipartisan bill, the widen-greg bill to works to simplify the tax code to overhaul the tax structure in

a -->> but there are -- >> but there are sacred cows in there. that's why people shy away from it. if people want meaningful reform, go for something in the works that has bipartisan support. that could gets through. >> it's still progressive. karl marx advocated for progressive tax code where the rich pays more. that's what the left wants. >> this is bipartisan. this is a bipartisan bill. the fair tax proposed by linder, fair tax is progressive on the middle class and regressive on the wealthy. >> everyone is the same. >> cheryl: charlie, they're asking for fewer taxes, less government. seems like a positive to me. >> this is a great discussion. it's a side issue politically. this won't happen in our lifetime, but it forces us to examine how insane the tax code is. my heart is with jonathan. it is.

politically it will happen. you will never get to what needs to be done, extend the bush tax rate. >> the tea party movement is sending the agenda. >> i like them but they want to get rid of the fed. do you want to get rid of the fed tomorrow? >> yes. yes. >> that's not happening either. >> cheryl: i vote for wayne rogers to vote for something. give you the last word, wayne. >> as i said before, the idea of national sales tax is a good idea. easy to implement. it's immediate and you don't wait until the end of the year, not seasonal. all of these things work. i think charlie is right in the sense that the reality, it's not going to happen. we have a congress that doesn't understand, they don't know who is on the other side of the aisle half the time. they don't know their phone numbers. we have morons in there. we're about to elect more morons. this is not replacing good

people with bad people. this replacing some bad people with worse people. >> cheryl: let me know who pays for dinner. coming up, they told us to bail out g.m. to keep the auto companies in the u.s. why is the u.s. government now trying to sell chunk of g.m. to china? then if this guy didn't get you fired up in his speech at the u.n., this will. guess what? you're paying for it. ♪ ♪ [ male announcer ] every siness day, bank of america lends billions of dollars, to individuals, institutions, schools, organizations and businesses. ♪ working to set opportunity in motion. bank of america. working to set opportunity in motion.

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>> cheryl: remember this? >> we cannot, and must not, and we will not let our auto industry simply vanish. this industry is like no other. it's an emblem of the american spirit. a once and future symbol of america's success. >> cheryl: back then it was bail-out g.m., to keep g.m. in the united nations. fast forward to this week. now the u.s. treasurer hoping to sell a big stake in g.m. to foreign investors like china. tracy, you buying in this idea? >> my gosh. i don't know why more people aren't flipping out of this. we own 61% of the company. now we're going to sell it to china? you know what they will do? take the jobs overseas and take the cars and make the cars overseas as well. china already owns the majority of our debt. you want them in the auto business, too? so much for keeping it in the u.s. >> cheryl: american taxpayers

still own 61% of g.m. >> this f this was -- if this was a foreign company, who would care. but it's company whose ideology is at odds with us. scary if national security stand point. g.m. don't bill tanks anymore but it could be retrofitted. i have a problem with that. i have a problem with the president's speech. that clip is unnerving what a great industry. if it was so great, it wouldn't have failed. we own it, that said, and we shouldn't sell it to a government that wants to clean our clocks on a daily basis. >> cheryl: you know what? the industry may not be so strong after all. we'll hear more from g.m. analysts say it's not a good move. they'll probably lose market share, more market share. >> market share is already near all-time low. people get worried about foreign companies, foreign countries buying shares in american companies, they could have done it any day. the problem with the mechmism and the scheme was it was set. we have to save this industry, we have to save the

u.s. jobs. invoked the faux patriotism. the country is still in bankrupt and the job still got lost and foreclosure still occurred. it happened anyway. >> jonathan, we are past that now. we bailed it out. do you think we should sell a piece of it to the chinese communist? >> if it goes public, they can buy it anyway. that's the point. free market. president doesn't support the free market. neither did the prior one. >> charlie is right. >> you remember cnet deal? you can prevent this from happening in some ways. i'm just saying -- doesn't it unnerve you a little bit that a company we bailed out, that the american taxpayer owns is now going to be sold to communist chinese? >> cheryl: wayne, again, i go back to the american taxpayer, still owning 61%. still might be bothered by the fact that the chinese will own potentially a chunk of g.m.

>> all due respect to charlie, it doesn't matter. it makes no difference. you can buy our stocks, it's a world market. excuse me, charlie, i have not finished. i have -- charlie, please don't interrupt me anymore. i have not finished. we have asked you before not to do that. >> who is "we"? >> please let me -- >> who is "we"? >> the producer. >> i don't remember that. >> cheryl: wayne, go ahead. please finish, sir. mr. rogers -- >> let me finish. >> cheryl: go ahead. >> let me finish. yeah. we own chinese stock, they own our stocks. i don't think it matters. tracy made a point they own most of our debt. what difference does it make that they are going to buy g.m. do we really care? they're making cars over here now, we're making cars over there. it doesn't really matter. it's a world market. you're going to have to proceed in a world market and compete. >> cheryl: i have to say, charlie does bring up a good point. there are rules and

restrictions about foreign ownership of countries in this company. having said that, the taxpayer still owns a big chunk of g.m. our relationship with china on the political front is still stressful and tenuous. >> the treasury department is not marketing specifically to china. they're part of the i.p.o.. i thought this was a good thing. i thought we wanted to reduce the government stake in g.m., so the government no longer own tos 61%. that's what -- >> actually, they are marketing specifically to china. the two firms that are involved -- >> they are not. morgan stanley is a sind kator. excuse me, if i may. >> they're marketing directly to china. >> morgan stanley, jp morgan and goldman sachs are involved. they market to foreign investors all the time. every time they do an i.p.o. let me finish. every time we do an i.p.o. in this country there is a road show that goes on that the banks perform. that road show includes foreign investors. >> cheryl: let me bring

something back. >> this is nothing new. >> cheryl: here is the point of bailing out g.m. was to keep the jobs in the country and keep the cars manufacturered here. china has a strong car manufacturering industry. who is to say they wouldn't push to see more g.m. cars made there? >> no one. everyone is right. china has the right to do whatever the heck they want. for the president to say we need to keep this in the united states, keeping a u.s. industry thriving, go to sell pieces to china is not the way to do it. >> i want my money back, though. >> i know, but do you want it to be in china? i'm not sure that is the right answer, jonathan. you have want the public to come out and invest in the company and believe in the industry. clearly, we don't. >> you really want blood money, jonathan? communist chinese. for god's sake, communist chinese. the government of china is -- >> cheryl: i tell you. wayne rogers is my favorite wonderful person. wayne, last word, mister? >> i was going to say the same thing.

we already own a lot of chinese stocks. i own some personally. i think it's fine we have a world economy and we must learn to compete in it. it's as simple as that. competition is what makes a free market work. >> cheryl: and a free show. guys, thank you. coming up, u.s. tax dollars now going to buy green friendly stoves to fight global warming. in foreign countries! you heard me right. plus, is the government nanny state forcing concerned parents to this -- >> i'm telling you this. my daughter. [bleep] gecko: good news sir, i just got an email from the office and word is people really love our claims service. gecko: 'specially the auto repair xpress. repairs are fast and they're guaranteed for as long as you own your car. boss: hey, that's great! is this your phone? gecko: yeah, 'course. boss: but...where do you put...i mean how do you...carry...

waitress: here you go. boss: thanks! gecko: no, no i got it, sir. anncr: geico. 15 minutes could save you 15% or more on car insurance. >> cheryl: coming up. think what this guy said at the u.n. was shocking? then you didn't hear about this. and you're paying for it. we'll explain. a fed up father has

hello, everybody. i'm uma pemmaraju in washington. the obama administration said it won't release classified information relating to the case of the radical islamic cleric anwar al-awlaki. the aclu is seeking information in a lawsuit filed on behalf of the al-awlaki family to prevent him being targeted for assassination. more on this coming up at the top of the hour. former and possibly future candidate mitt romney making an appearance at g.o.p. event in new hampshire with 30 days to go before the mid-term election. we look at the elections that could swing balance of powered and a new movie shines light on education system. why teachers unions are upset about how they're being portrayed. we preview the provocative film. that's coming up at the top of hour on america's news headquarters. hope you join us.

stay with us, everybody. >> cheryl: all right. to the u.n. and the new plan to spend million of american taxpayer dollars on stove to the world. tracy byrnes, why are you burning up over this? >> $50 million on stoves to foreign countries when we have 4.5 million people on unemployment benefits, 700 homes in foreclosure since the recession started. oh, we have to go to china to invest in g.m. i.p.o.? we need the money at home. >> cheryl: jonathan, the goal for this, the goal for the program, this is under our secretary of state, is have these and supposed to help global warming. supposed to be good for the environment to have the third world company. >> did you notice that the starving world countries are non-capitalist countries? i think the u.n. is disgusting, the fact that they host mahmoud ahmadinejad

who said the u.s. was in on 9/11 and we're spending $50 million. i don't care what it's for. but the fact it's going for clean stoves is farcical. this is a joke. we should get out of the u.n. and shut the institution for good. >> cheryl: the president has been clear he wants to support renewable industry. it doesn't help if the third world countries are polluting. that's the rationale. >> it's about clean energy, number one. we are the second largest producer of clean energy. second to china. china is also doing the same things in the african countries. this is about diplomacy. we're in an environment that is increasingly hostile. we need to continue to maintain positive relations. some of the stoves are made by american companies so it's not as if we're just sending jobs away with money. >> cheryl: actually, actually that's not completely true.

>> not completely true. >> cheryl: what they want is the testing centers overseas and have stoves manufacturered overseas. >> it's american companies, and -- >> cheryl: not for american jobs. >> part of a larger initiative. >> cheryl: charlie? >> we have famine in the third world. and we have civil war. strife. our solution, the obama administration solution, part of it, is to give them stoves. >> cheryl: okay. wayne, last word? [ laughter [ laughter ] >> i like the idea of spending the $50 million right here in the united states and giving a contract to a stove company here. make the stoves right here. nothing the matter with that if you want to do it. make them in the usa. >> cheryl: tara, thank you for joining this week. great to have you, ma'am. all right. when we come back, how many parent is teaching all

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>> cheryl: time for what do i need to know for next week? tracy byrnes? >> saw the video, upset father, his 13-year-old daughter with cerebral palsy was abused on the bus and did everything to correct it, talked to all the right people and the bureaucratic b.s. prevented it from being corrected.

i'm a parent. i would have gone postal on those people. nanny state is hurting our children. >> cheryl: disturbing video. charlie? >> wall street misses larry summers and the wall street will have a hard time to find a business person to replace him. it will be difficult. >> cheryl: wow! interesting. wayne rogers, sir? >> well, what you need to know is that there is a 3.8% tax on home sales that will take place in 2012. it was hidden, hidden, guess this, in the healthcare bill! why it was, there nobody knows. will it stop people from selling their house? maybe. because the tax on a $300,000 house will be $11,400 out of your pocket. >> cheryl: a good one. it was hidden. jonathan? >> a few weeks ago wayne mentioned "starving nation." an israeli company i own doing well is blue square, a chain of grocery stores in israel, including one called chefka cook for your ultra