reporter: [inaudible] this week the letter to the president from grover norquist, other free market people, asking you to give executive ction to index [inaudible] in other words, not to punish people with inflation. is that something the president has considered? mr. kudlow: i personally have mpaigned for inflation index [no odd hio] [no audio]nt the president has talked about it internally. many lawyers believe he can. ok. not all lawyers believe he can. many lawyers -- i'm not a lawyer. it's hard enough to be in my own lane. inflation index and cap gains, love to see it. yes, ma'am. reporter: on the state of the union, do you have more insight for the president to almost concede to pelosi? there were other options. [inaudible] mr. kudlow: i can't comment on any of that stuff. others so i can -- reporter: [inaudible] miles and miles away. do you agree with that? mr. kudlow: the british prime ministers always say, please refer to my earlier remarks. reporter: asked and answered. mr. kudlow: as i said, vice -- ere is coming to his with his top people. very important. want to , again, i mak

guess that people who like low taxes like grover norquist, he goes back to the reagan administration and came up with the taxpayer pledge that says i will not raise taxes at all ever in my life. a lot of republicans of taken that pledge. it's a frontal assault on the mission he has successfully prosecuted for 30 years. i talked to him. all she's going to do is destroy the democrats chances of winning in the next election. i don't know if that's really true. i'm not taking sides on the issue, looking at the polling data, there is a lot of support for higher tax rates for the rich. if you take literally what she is saying, the 70% rate would not kick in until you've made $10 million, that's a small percentage of the electorate. no, it wouldvoted be a drop in the ocean. the only way to defeat a proposal like that is to vote against it because they think it's unfair or it's bad for the overall economy. host: can you explain the modern monetary theory? guest: it's the idea in a nutshell that if you owe money in your currency, the u.s. borrows money by issuing treasury bonds in dollars, as

. >> you can guess that people who like low taxes like grover norquist, he is the one who goes back to the reagan administration and came up with the taxpayer pledge, the one that says i will not raise taxes in my life. a lot of republicans have taken that pledge. for him to have them come on and say this is a frontal assault on the mission that he is successfully prosecuted for more than 20 years now. i talked to him and he tossed it off as, i welcome this because all she is going to do is destroy the democrat chances of winning in the next election. i don't know if that is true. i am not taking sides on the issue but looking at the polling data it shows that quite a lot of support for higher tax rates on the rich. take literally what she is saying, the 70% rate would not take in and tell you of $10 million in one year, that is a pretty small percentage of the electorate. even if all the people have been hurt by that voted no it would be a drop in the ocean. the only way to defeat a proposal like that is for a lot of people who would never pay that rate to vote against it because they

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grover norquist, who wrote an op-ed, titled, ocasio-cortez's 70% income tax rate is an opening shot inover is the americans for tax reform president. are you basically saying, not just the super-rich get a tax increase, it is everybody, is that what you're saying? >> absolutely. couple innings. cortez is talking about one tax increase, giving us top rate 70%, which would be highest in the world. higher than communist china. higher than everybody else. there is nobody in europe with a 70% individual rate. so, her proposal is to take us to the highest in the world on that tax. yarmouth, the 71-year-old democrat from kentucky, supposedly grown-up in the room, called for taking the corporate rate from 21 to 28, up by a third to 28, higher than china. higher than britain, higher than canada. higher than germany. to make us uncompetitive in the world. and add to that, all of the democrats and democratic party endorsed the trillion dollar tax on carbon dioxide, the carbon dioxide tax, they want to use to fund stuff on green things. so, these, and that is tax on middle income people. rich peop

do not forget, my good:friend grover norquist said when you take 100% of the fruits much someone's laborthat's slavery. ways it when you want to take 70%? a.o.c. joining me, stephanie hamil and robert, i'll throw that one at you. since the democrats are looking to take 70%. you have maxine waters saying she wants to do to the banks what they did to us. by the way, the banks are not the only ones responsible for that whole financial crisis, i would remind everyone. what's that going to look like? >> we have to get away from the smoke filled rooms and those who make decisions for the rest of america. trish: i don't disagree with that. but i will remind you after 2008 we put in a ton of regulations to the financial system. then you looked at the most of anemic recovery in the history of his country. we are talking worse than the great depression in terms of how we were able to recover. i blame a lot of that on president obama's poorly thought out economic policies as well as all the regulation that went into the banks. they couldn't lend. >> you can't separate that from the tea party revolu

raise taxes to pay for education or infrastructure or transportation because they signed that grover norquist pledge how many years ago and they'll never raise taxes under any circumstances, even if there's a major calamity. you don't have to raise taxes by legalizing recreational marijuana. you can get a revenue stream that would make sense because people are buying it underground anyway. i saw massachusetts, when they opened the first recreational spot, everybody in line was my age or older. [laughter] these vietnam veterans with their hats on, they're ail all lining up. it's crazy to have a system where you sell alcohol and you turn your nose up at the cannabis part of it. safe injection sites are difficult because the first thing that happens, our own u.s. attorney, who i happen to like and respect very much, is threatening to lock everybody up from saving people's lives. we're also having a complicated debate with our law department about whether we can sponsor it, whether it's a nonprofit that can run it, former governor has been in the forefront of being the front guy who has offered t

grover norquist. >> i don't remember that far back. >> okay, if amazon or google wanted to buy the department, what is your audit tell you it's worth? >> big brothers. more than they have. let's put it this way, if you were to take the assets of walmart, apple, and the state of california, and you were to double them, you wouldn't yet be to the department of defense in terms of the assets and liabilities of the department. however, if they looked at our pension, they may be cautious to absorb our pension liability. >> yes. >> in your -- >> could you identify yourself. >> mike stone from reuters. i wanted to ask about your new role in the acting capacity. what programs have you taken responsibility for? what flowed to you, especially due to conflict of interest that patrick shanahan can't take on? >> so, those are two parts. first, the role of the deputy secretary of defense, and i'm performing the duties there of, is pace basically like the chief operations officer. my job is to implement the national defense strategy, so we're looking at major initiatives, whether it's cybersecurity, artific

in the past, you had grover norquist. he wanted to shrink government to the side that you could drown in a bathtub. and all thehutdown goings-on with it be part of the plan to shrink the government? i will take my answer on fear. host: whatever you want to pick up on. it seems to me a lot of the funding questions like when people see that flights aren't taking off at laguardia, it's important for government in their lives. with drug overdoses, it is horrifying. we lost 56,000 people in the vietnam war total. we lost more than that to drug overdoses last year. government has a role in trying to solve some of these problems. this is a thing we see with appropriations. they want to be part of the solution and not just be involved in a policy fights. guest: the congress has tried to act on the opioid overdoses. it's easier in a lot of ways treatmentng together centers across the country. it's money to have beds in rehab centers. what we have seen on capitol hill and the reason the immigration fight has been so hard to resolve

david: we want to mention we will speak with grover norquist about this and more tomorrow on "bulls &s night we got full coverage and analysis of the president's first oval office address. coverage begins at 7:00 p.m. eastern with myself and trish regan followed by neil cavuto and kennedy. that does it for both embarrassment we will see you next time. >> today the speaker of the house is trying to argue a physical barrier is immoral. >> a wall is and immorality. it's not who we are as a nation. >> maybe they are dead set but this particular president. >> we are not doing a lot. >> they are not immoral. elizabeth: three hours away from the president's primetime address in the oval office as a set down showdown is now at fever pitch. it is the story of the unstoppable force of president trump meeting the immovable object of nancy pelosi. both sides seeking major political rest, tonight who will be blamed for the

in the past, you had grover norquist.wanted to shrink government to the side that you could drown in a bathtub. and all thehutdown goings-on with it be part of the plan to shrink the government? i will take my answer on fear. host: whatever you want to pick up on. it seems to me a lot of the funding questions like when people see that flights aren't taking off at laguardia, it's important for government in their lives. with drug overdoses, it is horrifying. we lost 56,000 people in the vietnam war total. we lost more than that to drug overdoses last year. government has a role in trying to solve some of these problems. this is a thing we see with appropriations. they want to be part of the solution and not just be involved in a policy fights. guest: the congress has tried to act on the opioid overdoses. it's easier in a lot of ways treatmentng together centers across the country. it's money to have beds in rehab centers. what we have seen on capitol hill and the reason the immigration fight has been so hard to resolve is

americans for tax reform president grover norquist says while some americans will get smaller tax refunds good thing because they paid less in taxes overall. listen. >> 90% of americans will see a significant tax reduction. you will also see 46 million people used to have to itemize. that is now down to 18 million people. 90% of people can use the standard deduction because it has been increased so dramatically. this is a significant reduction for a lot of middle income and lower income. someone making $35,000 as individual, see as drop by about $800. this is dramatic reduction in people's tax burden. ♪ woman: my reputation was trashed online, i felt completely helpless. my entire career and business were in jeopardy. i called reputation defender. they were able to restore my good name. if you're under attack, i recommend calling reputation defender. and consider joining their groundbreaking campaign to give every american the right to remove old, inaccurate search results by going to righttobeforgotten.org. vo: if you have search results that are wrong or unfair, call reputation defender

grover norquist. >> i don't remember that far back, but okay. okay. if amazon or google wanted to buy the department what does your audit tell you it's worth? >> big brothers. more than they have. let's put it this way, if you were to take the assets of walmart, apple and the state of california and you were to double them, you wouldn't get me to the department of defense in terms of the assets and liabilities of the department, however, if they looked at our pension they may be cautious to absorb our pension liability. >> yes. >> in your new role -- >> could you identify yourself, please. >> sorry. mike stone from reuters. i wanted to ask about your new role in the acting capacity. what programs have you taken responsibility for, what's flowed to you, especially due to conflicts of interest that patrick shanahan can't take on? >> let me address those in two parts. first of all, the role of the deputy secretary of defense and i'm performing the duties thereof, is base lee like the chief operations officer. my job is to help them implement the national