he was a superhero in "daredevil." remember that? even he agreed it was an awful movie. i say bring back adam west. he's 85, tan, rested and ready. i'm craig jarrett in for shepherd smith. tick, tick, tick. accused of groping and forcibly kissing 18 women. is san diego mayor bob filner about to kiss his job, career, maybe future good-bye and get paid to do it on the way out? the city council debating it as we speak. a decision is imminent. and we are all over it. welcome everybody. i'm neil cavuto and we are live in san diego where the city council is meeting and deciding mayor's fate going over a tentative deal aimed at getting that mayor to go. residents, even the democratic party have been demanding it. now it looks like we are very close to seeing it. sources say the main sticking point appears to be whether the

city should pay the mayor's legal fees in a sexual harassment suit filed by a former aide. rachel lang on the petition drive in order to get filner out, she says if it costs the money to do so it is still money well-spent. she's in san diego where all this is happening. very good to have you, rachel. thanks for joining us. so you're okay if the city ends up footing a good chunk of his legal bills to fight him? >> well, the problem is that this is costing us money every day he remains in office. that's why we launched this recall drive, to get him out of office because he wouldn't resign. if you consider all of the costs involved in having a city paralyze paralyzed, we have departments without heads and can't get new directors with our city in chaos. >> i'm sorry, i see where you're coming from. obviously he could use that as a wedge to keep himself in office. you didn't want that to be an excuse. is that a serious sticking point

though? is that what's slowing this down? >> well, you know, i think emotionally it hate to think he did something wrong and we're going to pay for it. but we have to think pragmatically. this recall has been tremendously successful, unbelievably so. but we still have 80,000 signatures to gather. so a bird in the hand is worth two in the bush they say. so we're supporting this resolution to have his resignation. >> all right. in this harassment suit, and where he goes with this, is there a sense that there will be more suits to come? in other words, if there are then the legal costs are going to get very prohibitive to him and he's going to want to dump them right back on the city, essentially the very folks suing him. >> yeah. well, i wish i knew more about the terms of the deal, but i mean, there are definitely dozens more victims out there. i'm certain of it. so, you know, i'm not sure how many of them -- how much of this

was when he was in the office of the mayor versus as a congress member. so we don't really know the costs, but i can tell you we cannot afford to go another three months or another six months in this situation. >> so your view is just get the heck out. good-bye. there's the door. don't let it slam behind you. >> get him out. and i kind of trust that our council members did not negotiate and our city attorney didn't negotiate something that's going to have prohibitive costs to the city. i don't think that's the case. the issue now is more emotional distress that we're paying for him at all when we can try to throw him out of office with a recall. but a recall is always iffy, again, it would take six months. >> yeah. but it looks like the wheels are in motion, albeit slowly. but you have them speeding up, rachel. rachel laing, she got it started up. quite a few signatures in the process. now to our legal eagles on this as we await the council's

decision. donna and vicki -- camera holder ha e had a wrong name in there. this is the danger reading a prompter. what happened -- should the city it just seems kind of weird, be stuck with the bill? >> yes and no. of course morally no, they shouldn't be stuck with the bill. but because he supposedly or possibly engaged in this behavior while he was working for the city, one of the allegations being, well, he grabbed somebody's breast, a woman's breast, while he was an employee of the city. so therefore it falls under those labor laws where the city would be liable. again, morally, no. but apparently based on what i have just recently read that the negotiation does involve the city would pay for some if not all of the legal bills. and on top of that the damages. >> the representatives of the city are suing him. that's what's kind of weird. >> well, it's not just that, but

his former employees are basically suing him. so the way the city has to look at this and the way that it is looking at it is they are going to save money by getting rid of him and paying him to go. because now think of it this way, neil, you've got almost 20 women suing him for sex harassment. if he's out of office and thein se sentive for him to stay in office is gone, this is going to cost a lot less to the city because there's a lot less incentive for the 20 victims or plaintiffs to continue on if all they're going to get is a paycheck. if it's only about money, figure out what that dollar amount is, write them a check and this goes away. >> also the recall option takes long and kind of what rachel was doing, our prior guest, it's a time consuming process. but that negates the other stuff, doesn't it? >> well, it's also actually not only time consuming, but it costs money. time is money, right? and there was a study that was done over the weekend, last weekend, that said 15% would donate their money to the

recall, and 20% would volunteer their time to the recall campaign. they would go out and collect signatures. so not only is there the expense of the taxpayers directly, but these are indirect costs that they're donating to get him out. >> well, it's clear to me he's trying to use this as a bargaining chip to try to, you know, have all this paid for. much like a lot of employees were forced out of a company, they have a severance agreement or try to get the most generous terms before you're heaved out on. is it smart for him? >> it is smart for him. and i believe it will work. the city wants to save money. now if they get rid of him via settlement, they don't have to worry about him coming back to sue for wrongful termination or whatever they would determine. >> they would build that in there. >> right. >> the problem is gloria allred only represents one of the women. the 18, 20, 30, 40 other women are not represented. they are not part of this settlement agreement. >> after that wouldn't they be

suing him as a private citizen? >> not necessarily. just because he resigns, that doesn't mean that the city is no longer liable for what he did while he worked for the city. >> what's the p.r. cost of the city? san diego's a beautiful city, second largest in california. perfect temperatures, great place to vacation and he's a blithe. and the p.r. aspect, he's well worth the cost to give him the heave, right? >> i lived in san diego for 13 years, loved it. but he's only a blithe now for eight months. >> but they can't -- the cost of this escalate if more women come forward and whether in or out of office the city's paying the bill. >> they will jump on the gravy train. and this will be a global settlement. he won't settle with one unless they all come on board. that would be the smart thing for him and the city. >> but he can't call any shots right now, can he? >> they can negotiate. >> no. but again, the women don't have representation yet as far as i know. we just know about this one woman. >> so gloria allred's representing only the one, first one.

>> one woman. and a lawsuit was formally filed. so this is a settlement -- this has been behind closed doors settlement agreements, hopefully settlement agreement, but only representing one. so she's just looking out for her client. that's it. there are all these other women who can go after the city. and that settlement agreement doesn't attach to them. >> all right. ladies, we'll watch very closely. in the meantime, thank you very much. that's what the council is effectively deciding, the degree of legal protection they afford themselves and the mayor if they want to make him a former mayor. and as the ladies pointed out that could be contentious and time consuming. we suspect some time in this hour the mayor of san diego will become the former mayor of san diego. in the meantime, the nasdaq up and running one day after completely flatlining. and now new questions over whether the exchange is telling the truth and hackers were to blame. and if lawmakers weren't going to hold town halls this month, this guy was going to make sure he did. after commanding the crowds, jim

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well, you know, despite all these games back and forth how they hold it down at a certain level, the debt is still racing toward $17 trillion. forget bringing ben affleck in as "batman," your financial superhero's already on the case. all right. i remember, ladies, built to scale. anyway, congress is still on summer break, as a make or break october 1st deadline is fast approaching to keep the government cash flowing. while the nation's debt keeps growing, some concerns about what the house speaker is doing talking about yet another short-term fix that would essentially keep the spending levels going for a couple of months, limping along. craig smith says this is the kind of stuff that's got to stop right now because very, very quickly the speaker, republicans, all of washington

losing credibility fast right now. that's a big problem for you, right, craig? >> it certainly is. and it should be for every single american, neil. look, two years ago this month we celebrated the downgrading of america's debt through s&p because of the bad budget deal that we cut by raising the debt ceiling and not having appropriate spending cuts to go along with it. you remember the supercommittee and they didn't come up with the cuts and then the sequester. s&p has now been joined by moody's and fitch saying, look, if we can't see a credible plan to reduce these deficits, then we're going to have no choice but to downgrade you. we went from aaa to aa-plus, neil. >> craig, i don't think that bothers -- i really don't think it bothers them because the stigma ended when the scarlet letter was removed. in other words, and the jinx was up. s&p said, look, you're no longer aaa. people realize after that, all right, we're no longer aaa.

what's bad about that is we sort of set our aspirations lower and we sort of acted that way. >> well, maybe so, but perception, you know, may sometimes be stronger than reality. but ultimately reality kicks in. look, we've already seen the treasury bills up -- or the 10-year note up a full percent. that's a big cost to us financing this $17 trillion. we don't even know how much of a debt increase -- or ceiling increase they're asking for. >> we should explain that, craig. you're a genious, but when you have $17 trillion and the bargaining goes up by a percent, it's a lot. that's a big worry for you, right? >> you bet. and here's the problem, neil. you know as well as i do 45% of the spending in this budget is medicaid, medicare, social security entitlements. now we're getting ready to throw obama care on top of that. do you really believe that any of these agencies aren't going to say you are no longer a risk-free borrower? as a matter of fact, we came off

that list when we went from aaa to aa-plus. we are no longer a risk-free borrower anymore, neil. my question is, why aren't we doing something about it? >> so you're angry at speaker boehner for kind of just going along the limp along here? >> well, boehner's going to have to make a choice here, neil. he's going to have to say, look, i don't care if i lose my speakership or if i lose my job as a congressman. i'm going to have to tell the american people we have to make these cuts. we've got to hold the line. this whole nonsense about the default, the only way that would happen is if treasury secretary luo wanted default. we pay our bills, we still get along, but we're going to have to deal with entitlements. neil, we can't kick the can any further down the road. >> it's amazing. craig, thank you very much. our chairman craig smith in phoenix. more dire predictions, until mandatory spending cuts are kept

in place. >> the situation has taken an enormous amount of immediate resources out of the economy. it's probably -- >> government spending you're talking about. >> -- government spending, which would have produced a half to .75% of gdp growth and hundreds of thousands of jobs. >> i think he just made that up. how would you know? in an op-ed attorney general saying "the cuts imposed by sequestration defy common sense because they will end up costing taxpayers much more than they say." but look at the job situation. all right, these jobs might not be great, but they were jobs. they were forecasting that we'd lose 750,000 million of them. someone is lying. someone is lying. here we go again. what do you think? >> i don't think we're lying. the fact is the sequestration was the end of the world, and we're still here. and we didn't even have to have neil cavuto in the green suit

flying in to save us. >> again, that was built to form. go ahead. >> i mean, i think the fact is they oversold the impact of the sequestration. >> why are they still pushing this then? >> what else have they got? i mean, they need to be able to say that the idea that we're going to hold back government spending is a horrible apocalypse. and when it doesn't turn out to be one, i mean, here's the irony. you've got obama going out on the trail this week campaigning. and he's saying the economy is really robust. and it's really getting better. when there's no signs that for middle class americans it is. so which is it? is it as good as he said it was at the podium yesterday? or is it as bad as jack leu and eric holder say it is because of the sequestration? did sequestration have an impact on some people? of course it did. it would have had more except the president figured out how to make it as painful as possible. and even then it wasn't the amputation of a leg. it was, you know, a hypodermic

needle without the anesthetic. >> whatever you're idea is, if we're saying about $60 billion worth of cuts, you and i know $50 billion off of -- >> that's right. >> all this is causing -- you pointed out the trillions that we have to address, the scale back spending. if we can't deal with this and we're still explaining about this relatively small sum, man, we'll never get our act together. >> and we may not unless we get a real significant leadership change within the senate and ultimately in the white house. >> what about in the house? a lot of critics on the right saying boehner by proposing a plan to -- and i can understand let's get past the hump, but we keep doing that and robbing peter to pay paul sort of. and it's getting old. >> i think we need to separate the continuing resolution of the government versus the debt

ceiling. if i were the republicans, hold the line on the debt ceiling. i wouldn't push too much the -- >> he's obviously -- right? >> right. that's a dangerous place to be because he can't win. >> so you agree with what he's doing? >> you know, i agree that what he's doing is really the only play he's got given the components of government. i don't disagree with some of the more rabid republicans who want to go ahead and have the showdown. >> we're going to have one of them, jim demint, later. but it is causing a bit of internal debate within the party. >> i just don't think it's fair to say that if a person doesn't agree with that person, that the hardline, that they're squishes or rhinos. what they're looking at is the long-term effect of 2014. that is what republicans need to win. not a battle, but a war. >> you're not in the camp then that says government shutdown isn't going to damage us. there are those republicans that argue that. demint might be among them, i don't know, i'll find out. look, we have to stand for principle. and we do okay in shutdowns.

in '95 people forget we ended up gaining seats and we got our spending cuts anyway. and bill clinton got a lot of credit. but we actually drove the debate. what do you make? >> well, people can look back, but let's not kid ourselves. republicans got blamed for what was perceived a painful time for veterans, a painful time for the elderly and for education. and i remember from my days as governor making budget cuts, you know, it's an unpopular thing to do. but the thing is the executive is always going to win that argument because he's got one big megaphone that goes to 11. everybody else has got to split theirs and theirs barely goes to three. >> that's true. that's true. i forget about that. mike huckabee, thank you very much. one day after the nasdaq gets -- maybe if we're lucky he'll get into the nasdaq. i would say no at this point. anyway, new speculation -- that whole thing, it might not have been an accident. re at fidelityu

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the nasdaq is back 24 hours after a flash freeze put a chill in the air. nasdaq ending the day higher today, but open all through the day. the snafu raising more questions than answers. sandra smith live for us. welcome back. >> thank you, neil. as we know the nasdaq was highly criticized for lack of communication during this flash freeze. nasdaq ceo bob greifeld defended the way his exchange handled the outage on fox business earlier today. here's what he said. >> it indicates to some people you guys don't have your arms wrapped around your system. >> well, certainly we are deeply disappointed with what happened yesterday. our entire industry we had open

telephone lines with them, we made sure the entire industry was ready to come live. and we did come live. we came live quite successfully and finished the day in normal course of business. >> that's still not totally comforting to investors. the nasdaq said that it knew 30 minutes into this outage what caused the problem. they're still not identifying the source of the problem. but it was another two and a half hours before officials were ready to resume trading activity. they were working towards a smooth open, they said. greifeld said he and others were just too busy trying to get things up and running to make any public statements. that didn't seem to calm angry investors who were stuck with more open positions and questions than answers. and meanwhile today sources telling the fox business network that nasdaq is pitching twitter for an ipo. and it's possibly on track for 2014. and, neil, one might look at that and say the timing a bit interesting after this snafu yesterday to be talking about

taking twitter public. nasdaq as we know already hosts major fortune 500 companies that we all know google, facebook, app apple, all of which, neil, opened normally after this big debacle this morning. back to you. >> yeah. if i were them i'd lay low at least for a little while. sandra, good to have you back. a lot of people don't know you had a beautiful baby girl. what's her name? >> that's cora bell. my little darling. >> the fun begins. you know it costs half a million dollars to raise a kid through college? good luck. >> well, you're the right guy to be talking to then, neil. how am i doing? >> i think you're well on your way. sandra, congratulations again. great to have you back. that is a beautiful girl. >> thank you much. so was it really a glitch? or was it a hack? nasdaq's denying the hacking rumors of course, as sandra pointed out. security analyst morgan wright

ain't buying it. >> a former friend of mine said i don't believe in coincidence. we've had too many of these things. the fact that the fbi and the treasury department are investigating this along with that, maybe it's not. but they were so quick to come out and say it wasn't. somebody who used to teach investigations and do the network investigations, i can tell you it takes weeks and months to get down to really what happened. it's going to be one of two things, either they're absolutely right and they knew 30 minutes into this, or they're absolutely wrong and we're going to find out later. >> had come in what had been a flurry of prominent sites that were all hacked including amazon, whether it was hacked or not shut down for a while and they lost a lot of money in the interim. the "new york times," cnn, "the washington post," i could go on and on. afterwards there was definitely a string of these. whether it connects to the nasdaq, i have no idea. but we are seeing banks hacked into, we are seeing those with the greatest fire walls you would think recklessly plunged in. what's going on?

>> look, i've been on with melissa frances, i've been on fox news, jen na lee, it's the same actors, it's iran, it's an offshoot of hamas that are being sponsored by iran. there are political reasons for taking down financial systems and political reasons for taking down banks and other things. neil, even if this wasn't an attack, say the glitch, the point is somebody has now learned what the vulnerabilities are. they have a better idea to take down the system and whether it's an attack or not, i would say no predictions here. somebody's going to look at this and say we understand now how to cause the greatest impact. three hours as you know better than i it's a lifetime. >> and it's a credibility issue. sometimes you don't need to do demonstrable damage. getting a prominent name like twitter, that begins the financial impact. morgan, great stuff. you're always so good.

>> thanks, neil. >> cyber security analyst morgan wright. in the meantime the fund obama tour rocking the nation. now hear from the rock star pushing it. >> jim demint is fearless. and here in north texas, the home of chuck norris, we know something about fearless. in fact, you know, kids all over the world wear superman pajamas. superman wears chuck norris pajamas. and let me tell you, chuck norris wears jim demint pajamas. how do you do a summer clearance event the dodge way?

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usa! usa! usa! usa! usa! usa! well, a pretty row sm start. heritage action to fund obama care, a town hall tour in full swing. and so far it's getting massive turnouts everywhere it pops up. what does washington think of this? is it reacting to this? is it moved by any of this? to the guy behind all of this, the president of the heritage foundation, the former senator jim demint joining us from birmingham, alabama. senator, did you envision this kind of reaction? >> neil, i haven't seen anything like this even when the tea party rallies were going on.

we probably had 5,000 people come out in five cities this week. and the numbers seem to be growing at every stop. conservatives are united around stopping this unfair and unworkable bill before it's completely implemented. >> but now, senator ted had very kind words to you, i love the pajamas analogy there. even he i think has acknowledged, senator, that it's an uphill fight to defund this thing and even to attach it to other means by which you could even probably to shut down the government as a threat. so what do you do? >> well, it's an uphill battle unless the people around the country speak up, let their representatives know how they feel about this in both parties. neil, we know over half of americans want this stopped. and the question now is if the house republicans actually fund the government but don't fund obama care, will the president

actually shut the government down in order to save this unfair law? we're hearing more every day about people losing their insurance, moving to part-time, some losing their job. this is not a workable program. and we need to stop it before the sign-up begins on october 1st. >> you know, there are many democrats i've talked to, senator, say they would love to see you sucked into that lair, not you but republicans to go ahead and try to call the president's bluff or his challenge that you continue to call for funding. the government would not and he obviously doesn't want an ultimatum like that. it wouldn't be he, he'd put it on you and that republicans once again would get the blame for doing something like that. what do you say to that? >> well, there's risk in any kind of showdown with the president. but the president is going to take this to the brink regardless of whether they fund obama care. we've got the debt limit controversy coming up, the

sequester controversy, the president wants to raise taxes again. and he knows the republicans are afraid every time he says shutdown. i think the republicans should be the one who stand up and say, mr. president, this bill is unfair. you've given waivers to congress. you've given waivers to big business. but you haven't given any waivers or delays to average americans. we need to stop the implementation of this bill. neil, i think it comes down to courage. and what i've said many times this week, since when do americans not fight for what's right because they're afraid they might lose? i think if people ran their campaigns on stopping this terrible law, then they should step up to the plate and do it. >> speaker boehner -- well, it's a separate issue in a way, senator, wants to do something to kind of keep the government going for another 60 days as sort of a, you know, a limping measure to try to keep things going. but another delay avoids any serious problems in 60 days and

come back. but we've seen this before, both parties have played this game before. what do you think of that? and do you think he shares your vigor on this issue? >> well, i think the frustration with conservatives is we've heard this several times since 2010 when the republicans were given the majority primarily to stop obama care. we keep hearing, let's don't fight now, we'll fight in a few months. and then let's don't fight then, we'll fight -- but now this is the deadline. i mean, we are implementing this law beginning october 1st. so to say let's fund it for just a couple more months, i think conservatives and many americans have heard all they can take of that. if you support the bill, or if you support the law, then fund it. if you don't, stand up for your convictions and don't fund the bill. but do fund the government. no one is talking about shutting down the government except president obama. >> all right. but you know how the p.r. game

goes. >> yeah. >> it's crazy the way it goes, but you know the city better than i do. so what i want to go back to on speaker boehner, do you think he should be speaker? are you disappointed in him as speaker? many conservative members in the house when they heard wind of this latest idea said that's it. >> well, neil, i'm not going to comment on who should be speaker. that's really not my job at heritage. but i will tell you this, what americans want is somebody like ted cruz or mike lee who are willing to stand up for what they promised in their campaigns. you saw the people of dallas stand up and cheer ted cruz for minutes at a time. and they just appreciate someone with courage. they don't necessarily expect us to win all the battles. but they expect us to stand up and fight for what we believe in. >> senator, while i have you here, what do you think of chris christie? >> i don't know him that well, neil. so i really, really can't comment. and the heritage foundation, we don't get involved with elections. but we focus on what policy is

good or bad for the country. and there's no policy, there's no law that could hurt this country more than this obama care law. >> the back and forth he's had with rand paul the like, i had rand paul on the other day saying he would have a tough time supporting the guy doesn't think he'd be that different than the democratic nominee. >> one thing good about conservatives and republicans, they're willing to debate within the party. they don't go in lockstep. i don't think it's that big a problem for them to have a tussle over an issue or two. >> it's only a little tussle? >> yeah. >> okay. senator, thank you very much. >> neil, it's good to be with you again. >> same here. you know, he's in the guinness book of world records for logging more time on tv than anyone anywhere. that's what a 50-year career in television gets you. reg regis is hosting a new show on a sports network, fox sports 1

owned by the same wonderful company that owns this place. in case you've ever wondered how regis got his star, let's just say thank god a marine gave him some pretty good advice. >> the guy said to me, he's tough, he said what do you want to do with your life now that you're leaving? i said, well, you know, i'd like to go into television. but i really don't have any talent. i look at these people on tv and they're great actors and great voices, i don't know. he said, and he got right up to my face, he said don't you know you can have anything you want in this life? you've only got to want it bad enough. now do you want it? and i said, major -- i said do you want it? yes, sir, i want it. first time i was able to say that. >> young roger -- >> exactly. who was one of my producers for mike douglas when i filled in for mike douglas. >> sure. >> i got to get out of san diego

and go to hollywood and replace steve hallin on a job they had. roger was there. >> what do you think of the talk show world now? i mean, now everyone's getting ready with musical chairs they're playing. who's going to come out on top? >> gosh, i don't know. you know, i'm surprised that nbc is letting leno go. >> could there be worse people managers on the planet? >> well, i guess they're looking for that young -- everybody's looking for the young audience. >> but he has the young audience. >> well, you're right. i can't answer that question. let me ask you a question. >> sure. >> because i've followed you for years too. >> so you're the one. >> yeah. now, i want to know, neil cavuto, just tell me, how is apple going to do in the next six months? >> we'll talk after the show. don't get this stuff for free. i've learned from regis. >> oh, i've watched you for

years talk about -- i need help. >> more of my interview with the television legend himself. and now host of "crowd goes wild" on fox sports 1, that's tonight at 8:00 p.m. on fbn. te

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i don't think this is only about the concerns of the legal aliens -- >> by the way texas picks up the tab if they can't afford the id. >> right. that's the point. if they were giving them some extosh tent tax, say it's a poll tax, nothing like that. it's about making certain that the voting process which is really at the heart of this democratic republic has integrity. it's not just about keeping illegal aliens or unlawful aliens by voting, they're not allowed to. but i worry about people voting multiple times. if you don't have to show id, what's to show -- >> anywhere i've voted in other states, i've had to show id. for everything else you need an id. when did this become an issue of voter suppression? you walk in and say prove you are who you say you are. >> well, my sense of it and i could be wrong because i don't track this as closely as some of the immigration issues, but thinking back to the voter laws back in the clinton

administration the idea you get a driver's license, you get to vote and my concern back then and my other agents concerns were what if they're for unlawful immigrants or guy on a student visa getting a driver's license, does that mean they get to vote? >> all these other people, michael, coming in without so much without any id just walking in to vote? because that's weird. >> that is weird. but you know what they're doing is allowing you when you get your driver's license to say, yes, i want to be registered to vote. and they're being registered. some states are saying, well, you need a separate id if you're an american citizen and you want to use it for voting. >> you think this is more than what's going on. >> i do. >> this is not meant just to go after texas but arizona where they already have some of this and arizona's been a favorite target. but any state that might be thinking about this, we're going to do this to you too. >> well, it has a chilling effect. i worked with arizona on the lawsuit over 1070, the idea about illegal immigration. isn't it remarkable that states that are sanctuary states, or sanctuary cities, don't get spanked by the federal

government even though they're openly contempt chous of laws that are designed to protect innocent lives and the jobs of american workers, but if you try to enact laws expect a lawsuit. you have to wonder with all the lawsuits and i don't know if anyone's done a tally, you might want to, i don't think any other administration has filed more federal lawsuits against municipalities and states than the current administration. it seems as though the administration's at war with local government. don't you get that same feeling? >> they're the ones dealing with the fire. and they're the ones getting the fire. michael cutler, thank you very much. >> thank you. >> in the meantime, it's pretty clear that this president has no intention of ever being this guy. why doesn't he try to be more like this guy? john kennedy got something that this president never will. and 50 years ago he nicely spelled it all out if anyone would take the time to remember. >> established the fact that -- clients are always learning more

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. sometimes, try as i might, i can't get liberals to ever see the wisdom of cutting taxes. sometimes it is like they will do almost anything than give folks their money back. and more spending, stimulus that never stimulates, and rescue that needs still more rescues. this is so simple. so why do they make it so hard? just give taxpayers a break and you will see this economy boom. but no, because i'm the one saying it and conservatives by and large preach it, and the guy they really, really hate pounded it and triggered an economic boom, they ignore it.

and then i stumbled upon something remarkable last night. it is an interview almost 50 years old, by john kennedy. september 9th, 1963, a president who didn't know he had little more than two months to live, argued against tax cuts that his own party was dead set against. liberals, i want you to listen up. this is your icon, calling for bringing taxes down. >> mr. president, harry truman was out for his walk this morning and said he didn't think we should have a tax cut until we get the budget balanced. and the other day, he said what people think is true is very often more important than what actually is true. what -- in view of all of that, what do you think about cutting taxes while the budget is still indeficit? >> the reason the budget is in deficit, you get more than 4 million people unemployed.

you have a slow growth, much slower than any other western country. i am in favor of a tax cut because i'm concerned if we don't get the tax cut, we'll have an increase in unemployment and may enter into a period of economic downturn. we had a recession, we have done pretty well but still have over 4 million unemployed. this can stimulate our economy, providing for greater national wealth and reduce unemployment. i think it will strengthen our goal position so i think the response we've made is in the best interest of the country. >> the affirmative economic response to britain's tax cut seems to be almost immediate, would it be as immediate in this country, do you think? >> i think it would be, interestingly enough, the british came forward with their tax cut proposal, passed it in a month, unemployment has substantially been reduced. they have a larger deficit than we do, but the only criticism

was that it was not enough. nearly every economist has supported it. i think it is in the best economic interest of the country, unless this country just wants to drag along at 5 or 6 million people unemployed. have our budget unbalanced by a much larger proportion. the largest unbalanced budget in the history of this country was in 1958 because of the recession, more than half a million dollars. president eisenhower spend more than truman, but the country is much richer now than in president eisenhower's administration. i think our prescription can be good, we proposed an answer to a problem which has been part of our economic life for five or six years. and that is slack, failure to grow sufficiently, and the high

unemployment. you put that together with the fact we have to find 35,000 jobs in a week, it calls for a tax reduction this year. >> wow, the irony is that jfk would later get that tax cut but wouldn't live to see it. it would pass on to his successor's administration, and for johnson, it provided the very economic boom that kennedy predicted and nobody in his party seemed to see. but a half century later, by a preacher's words on a hot august day in washington, the president's untimely death on a november afternoon in dallas. events so big it is no wonder we forget what happened in between them. news forgotten now, but it was a huge deal back then. a liberal president pushing for a cut in taxes. before bush. before reagan, the lion of the left arguing for giving average american taxpayers a break.

that was then. let's not forget the wisdom of his words now. [ whispering ] uh! i had a nightmare! the house caught fire and we were out on the streets. [ whispering ] shhh. it's only a dream. and we have home insurance. but if we made a claim, our rate would go up... [ whispering ] shhh. you did it right. you have allstate claim rate guard so your rates won't go up just because of a claim. [ whispering ] are we still in a dream? no, you're in an allstate commercial. so get allstate home insurance with claim rate guard... [ whispering ] goodnight. there are so many people in our bedroom. [ dennis ] talk to an allstate agent... [ doorbell rings ] ...and let the good life in.