>> i'm monica malpass on inside story with republicans firmly in control of the house and senate what policy issues are likely to come out, we'll get the inside scoop from senator pat toomey. good morning and welcome to inside story, welcome to pat toomey, republican from pennsylvania here. thank you for being here. >> thanks for having me. >> let's start with the election results from a couple of weeks ago. the republicans are in control of the house and senate, president obama a democrat will have logger heads with some of the things that will be put forward. why do you think the election went the way it did? >> i think the american people

feel uneasy with the direction the county is heading. i think a lot of people are not comfortable with obama care and other things. i think there's another important part. people are tired of a complete lack of function in our government. senator reid chose to shut down the senate two years ago and we've done almost nothing, this is an important opportunity and obligation for republicans to govern. we've got to reopen the senate and pass bills and be productive as the american people expect us to. >> people are concerned about taxes, the elephant in every room, you're, woulding on a billow owe you're working on a bill for taxes that come up for renewal or nonrenewal, swells as well as as our friends from new

jersey. will that happen? >> i think we should have the temporary feature of the tax code. good tax policy should be made permanent and bad tax policy should be eliminated. senator menendez will take some of the parts of the bill to make them permanent. use small businesses to grow, purchase capital. which makes workers more productive. senator menendez and i have legislation together. i hope we get it done before the end of year. if not it will be a high priority for me in the new year. >> i know you want to do a macro approach to taxes the large tax code being archaic in ways. >> he have with a tax code that's way to complicated and uncompetitive. american businesses have the highest tax rates in the entire

world we put our workers and businesses at a competitive disadvantage we looks like market share around the world because of the tax code. make it more rational and fair. a lot of tax code is used to subsidize favored companies and industries, that's not right. have it nearly the lowest possible rate that we can consistent with the revenue we need to raise. streamline it. we would see more job growth and a stronger economy. >> democrats are targeting ten seats it sounds like in the senate, 8 republican seats and two of their own democratic seats that may be at odds and yours is one that's being targeted. joe as he sestak has been a traditional yours, is raising money funds for the next go around, perhaps. what do you feel like is going to be happening for you in that

regard. are you ready to go again? >> that is two years away, i don't know who my opponent is going to be, i'm not going to focus on it. we have an extraordinary opportunity in front of us to start governing again and start moving legislation that will helpful to the people i represent, i have a long list of bills i wish i could have gotten a vote on, now we'll get a chance to govern. >> in 8 or 9 months you have to make a decision whether to begin campaigning or not and how that's going to go. >> sometime near the end of next year. >> president obama was just in china, they worked out issues on emission control u.s. and china make a third of the globe carbon monoxide emissions, do you think that will do good in the end, some critics say jobs will be cost in china because of so many

controls being on their industry. >> i'm not concerned about the jobs lost in kline in -- china. the chinese agreed they will do what they have done you all alo, and what the president is doing is going down a path where we'll lose jobs and economic opportunity and growth and the benefit is did he -- deminius or none exist ant. isis the coalition, the u.s. is being mocked the u.s. controlled effort.

>> that's your prop propaganda. we have to pay attention to the threat, this is a very, very real threat. these are the same people i'dologicicly and philosophically attacked us on september 11. they have lands the size of indiana. they have sophisticated weapons and govern are structure and the ability to export their brand of terrorism to the united states and elsewhere over time. so it's very real threat. >> what you would you like to see happen? >> the president has to demonstrate the will to succeed and vince the -- convince the sunni arab states and the turkeys to help. it's going to take troops on the grounds it should come from the sunni arabs and the turks who are most at risk. >> thank you for being here,

good to see you. we'll be back with more inside story and the panelist discussion next

>> welcome back to inside story, time to meet our insiders this week, george b up rell. rene amoore and terry madonna and larry plat, obviously a

journalist, glad to have you back. not only is there big gridlock people are expecting out of washington, hope to see something happen with the republican controlled out and the democratic president. we have a lot of changes going on within the state and mayor's race coming up in a couple of years, on every level there's going to be up heervel and then -- upheaval and then some growth. >> i don't hold out much hope for washington. what we hear is the president is wrong we're right. you don't hear language toward compromise. you hear if the president doesn't do something, things won't change. you don't hear anything on their part torched compromising ground. it's all about what's going to happen two years from now. and how do the republicans try to defend themselves and the democrats position them to gain

ground. >> is it the setting of the stage store the respects to win back the white house. they need the president, obviously. >> my colleague is right, the way i have to look at this is simple. the republicans have to produce legislation, they have to get on the same page. they can not be stuck in gridlock between the house and the senate. if that's the case that will benefit the democrats, on the other hand, i think they are likely to send the president legislation on immigration eventually, keystone xl pipeline. there are areas where they could reach agreement with president obama on trade issues. he would have to fight the unions. >> 6 democrats by definition to send it to the president, i think somebody has to get along

a little bit. >> chances are republicans will mess up this moment and overreach and come olds as extreme. i wouldn't be surprised if you see a correction in the next election in terms of congress and the senate, because the playing field would be favorably for the democrats and turnout will be higher. >> rene disagrees with you. >> we're not going to mess it up. i'm going to have counseling members for everybody. on a serious note. i'm agreeing with terry an george, and i usually don't with george in particularly. we're going to send thing to the president. i'm saying if we don't get along we'll have problem. we have to make it happen. >> you want want to get something done and mitch mcconnell wants to get something done, but the republican party has been hijacked by an extreme

vocal wing. >> you have tremendous competition within the republican party who will be republican nominee for president and there's no clear winner. >> there's a lot of people. >> the other problem is what happens to the president if his job performance stays low, the voters of the country say this is a failed administration trying to get a third term even with hillary clinton is really tough. one-third term since fdr, basically third term, george herbert walker bush was a surrogate for ronald reagan, a successful and popular president. that's the problem. it works both ways, republicans and democrats have big challenges. >> let's talk about the state challenges, there was a should feeling of the leadership deck in harrisburg this week, took a few folks by surprise. dominic pileggi is out and the

leader is jake corpsman. what does that mean for reputation of the 150e69 which is philadelphia -- for the southeast, which is philadelphia, specifically, does that mean we're out of luck for the next several years? >> i was concerned about senator pileggi getting his position because he is a moderate. if you look at the elections across the state you have conservative new senators. that's what happened. the senators said pileggi is too moderate we want him out. and now we're just hanging out. that's the bottom line, we'll have to keep going up always the southeast representatives. we have to stay on top of it and make sure we get to our legislators and say look we have to be fair across the board. >> we have a new governor in office tom wolf democrat, how will that work, we're talking with more gridlock. >> the very few specifics he

ran on are going to looks like less likely to happen. tax on marcellus shale and trying to get a progressive income tax all the thing he made a priority are going to run into gridlock. we're seeing what we were talking about on the federal level trick himming down to the state -- trickling down to the state level. >> how will he get it to move along? >> there's one word that will help the democrats and republicans in the state and the federal level it's called compromise. to go back to the ledgy situation -- pileggi situation, here's the structure, in order to win in the suburbs, republicans have been moderate. once you go up state. >> it doesn't fly. >> you have much more conservative, but having said that, ink this was about

personality, the president pro tem of the senate and dominic pileggi have not been on the same page not just on policy. inside baseball, the real question is the republican caucus going to be unified given the fact as rene points out it's more conservative than before november 4. >> if the legislature also couldn't get policy passed with a republican governor who was just outed, how will they move ahead? >> i think governor elect wolf will have to populate his cabinet with republicans. the house and senate are not on the same page. they have to find an ability to compromise before the governor compromises. >> governor corbett could not get his agenda through a moderate senate. he couldn't get it through a conservative house, so think

about governor-elect wolf as was just pointed out, who has a much more aggressive ambitious agenda trying to get it through a conservative state house, that's not going to be easy. >> one thing he has going for him, everybody has to address the education problem, it's not just a philadelphia problem, it's a state problem. >> who who is on the inside tk we have people helping with the transition, john fry is heading that up. who will be on the end list? >> secretary wensle will stay, he has done a good job. it's important are the secretary of welfare, obama care, i think he'll keep him, and the transportation secretary. that's just an idea that i have

and i think that will happen. >> do you think it's a smooth transition? , sometimes it's difficult to make it into the next transition. >> it's difficult, but i'm encouraged so far, i thought john fry was a great choice and ca -- katherine mcginty is a matter choice. harry truman said it is amazing what you can get done when you don't care who gets the credit. that's a lost art in politics today. i don't know what the answer is, but we're seeing this compromise has become a dirty word on the federal and now the state level. >> in large part what's different we have more polarization in the public in the polls that we do and others do in legislativetive chambers, than we have in modern history. remember how polarized we are. lots of people got elected.

half of the state legislature is new in 6 years. >> don't your polls show that the people want compromise? >> of course they do. >> obama gets some, but minimum wage wins on five ballots. >> we've all been through this for a long time. everybody wants compromise, but reelect their people who don't compromise. >> there's the conundrum. >> republicans don't need tom wolf. i don't care what you do, we're safe. members of congress, same way. >> i hope he doesn't go around the country and try to to bring in a whole a bunch of new people. you have to hit the ground with political skill. >> let's move along. pennsylvania attorney general kathleen kane making news, fired two dozen employees disciplinary action involvement in a porn

graphic e-mail scandal, is this the end of it? terry said no, heads have been rolling on this, including the state police commissioner, department of environmental protection secretary and supreme court justice, shea -- seamus mccaffery. >> this is something that's been going on for years, this didn't start because corbett or anybody else else she got in, i think this is something that's keeping her busy. i don't see her doing anything else. >> 70% of the people who work in the attorney general office are involved in circulating porn graphic e-mails. 21 people have been fired.

6 people losing a job in the a imvment's office -- ag's office, 15 altogether. this begs for transparency. we need to know a lot more about it, there needs to be a compress owe a press conference instead of letting out a few names, in this case mostly republican names, we need a lot of more transparency. >> did this start with the release of 8 names, prior republican predecessors, this does seem to be a political angle to it. do you think we'll get transparency? >> i think so, you might not get it willing from politicians, but the press has a role to play here, that's why terry was pointing -- to you. >> we talked a lot on the show about the death of newspapers and there's a lack of accountability that has coursed

through our political system saturday look, there was there was this car accident -- >> in jersey. >> and there are a ton of confess that are not being addressed. it it may be innocent, but someone has to ask the question. >> why wasn't there a police report, and why wasn't it reported until a week later. >> in the community i'm in, people in the attorney general get back to fighting crime. we're dealing with political issues and public perception. she is assigned to some senior level person and manage it, she should get back to what she was elected to do and that's fight crime. >> she doesn't know how to do it. >> a sale for pgw there is a last minute effort to revive it. if they expand one operation and

update it to make a new kind of liquified natural gas there might be a bigger profit for the city, are we keeping it or not? >> i think we should keep it. bottom line if you look at the number we can make 7.7 to $10 million on this thing. i think it's much better with more job opportunities. >> it would be an outside company coming in and renovate the buildings. >> i don't i don't think thera reason for the city to be in the gas business when you look around the country no other cities are. and keep in mind what is being defended here is a intent that has the highest rates in the region and the worst rank customer service in the nation. that's something you don't want to get behind. >> i represented the city in this potential sale. all of the issues on the table require the investment of

capital to achieve. it is difficult, because the pgw has to borrow those funds and they have to replace pipe and pursue l and g and they don't have access to the marketplace. and there's business risk involved. >> we'll have to leave it at that. inside stories of the week coming up next, stick around ... to bring you a fresh tasting chicken. perdue. we believe in a better chicken.

impornews a lot lately.en in the for chicken that hasn't crossed an ocean, look for perdue. we're the first company to have the usda verify that our chickens are raised in the usa. to bring your family a fresh-tasting chicken. perdue. we believe in a better chicken. >> welcome back time for inside stories of the week, let's start with george. >> monica one of the argument for selling pgw was the employees could more out of the city. 190 officers moved out of the city, 0s most of the them are minorities arena they moved because of the quality of life in the community not because they don't want to be in the city. >> i want to talk about obama care. there's a resigning of obama care this saturday coming up. latinos don't want to sign up

for healthcare because they think their families will be deported. >> reporter: we talked about governor wolf earlier, the big day comes on tuesday in march when he delivers his first budget to the legislature, gone will be the lack of evidence specifics. they will be what are the numbers, what programs will he push the legislature, that will be the most compelling day in the next four months for governor elect tom wolf. >> we'll have the panel back to talk about it. >> a pirate turned 60. two weeks ago i was in key west with 200 other civilians for pat croce 60th birthday. he had a blowout party. the people who attended it was pure croce. it was the street to the elite.

he is doing his act in key west. we miss him here. >> he has it all figured out. he is a true philadelphian at heart. thanks for our panel being here thanks for your time and ideas. thank you for watching and we'll see you back here next sunday morning. party on people! blinds to go's 60th anniversary sale continues celebrating with 20% off the entire store. you heard right, 20% off the entire store. we're talking employee pricing baby! hey, you need 'em, you want 'em, and now there's no better time to get 'em. blinds to go. blinds for life.

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>> announcer: starting right now on abc's "this week," breaking overnight, isis claims it's executed another american hostage. we have team coverage of the horrific new videotape and what it means in the battle against the brutal terror group. ferguson, on edge again. brand-new images of officer darren wilson hours after the shooting of unarmed teenager michael brown. a grand jury decision now days away. what the new video reveals, how will the community react? immigration showdown, the president vowing to act on his own. how far will he go? and 60 days away, a top hillary ally says her 2016 decision is coming soon. from abc news, "this week with george stephanopoulos" begins now.