you don't need a cbo director or gao director coming and tell you. you know the issues. with all did you respect i'm fine with giving more information. but i don't think that changes things that much. i think you really need something that's harder than just here is the information and chastise you and you have a red face if you don't follow through. i don't see that's changing anything out there fundamentally in terms of your decision making process. i would have much harder sticks. i would -- i would have an automatic cr that cuts if you are not getting the work done and really have pain back on you. >> mr. clarm, interesting to have a discussion about how to inform our -- our bosses as aggressively as we're informing ourselves. i appreciate the converges vergeens group we are there to thele bums out every two years if they're not doing their job and if we're no the getting the right information out to the folks making the decisions in november perhaps -- there is ways we could do a better job of that as well. i yield back. thank you, mr. chairman. >> i'll just mention

the preliminary score from the cbo is that the bill will save over a 10 year period, 345 billion dollars. we look forward to our colleagues on the other side of the aisle and the president and others working with us because they claim to be the party of this cold responsibility. don't talk about it, be about it. and we are here to work with them to get something done on behalf of the american people . we also continue to work towards developing a real infrastructure plan, not the fake one that was introduced in the last congress by the president. a real one that will fix our crumbling bridges, roads, tunnels, airports and mass transportation system on behalf of the american people . infrastructure has traditionally been a bipartisan issue. what is the problem, mister president? we were sent here to get things done. we're willing to work with you on drug pricing, infrastructure and we're trying to get to yes on a us mexico canada trade agreement , but we need a partner. and so far, what we've seen coming out of 1600 pennsylvania avenue often is a petulant child. that's unfortunate. we hop

even though cbo warned that failure to make these payments would increase premiums by 20 percent andadd nearly $200 billion to the national debt. and time and again, this administration including you and president trump himself have used inflammatory rhetoric to spread false hoods and misinformation about the aca. and though you have slashed funding for aca enrollment outreach, you have certainly pushed taxpayer funds elsewhere, according to a press report you personally approved the awarding of millions of dollars of federal contracts to republicans, communications consultants who write your speeches, polish your brand and travel with you across the country. this calls into question your stewardship of critical cna resources that could be put to good use to give people coverage. administrative, administrator verma, it's simply your tenure that has focused on undermining the aca. we received a report yesterday that premiums will go down by four percent in 2020. but imagine how much more money americans could have saved if you were uplifting the aca and helping them to get coverage. p

i think so far today we've only used cbo's because that's only a mouse click away. so there's that. at any rate, then you start peeling off the r squareds from that. this slide shows you how much of the variance in inflation does the labor market or at least the unemployment gap explain. in recent years it hasn't explained very much at all, but it's started to climb up. this is very much consistent with katia's point that it's not everything but it's not nothing either. in fact, something like 12% of the variance is explained. therefore 12% of our time today should be spent talking about the labor market. these dynamics create an opportunity. yes, there's a flat phillips curve. but at least as important we've had decades of higher inequality, long-term real stagnation for middle and low wage workers, lots of people in places left behind and bargaining power deficits that are offset by full employment. i recently wrote a paper with keith bentley where we concluded that these change in dynamics should create a symmetry in the fed's reaction function to elevate the benefits of full emp

expectations, and then you do a olling regression on the residual using, the gap, so far we've only used cbo'sa mouse click away, there is that. start rate, and then you peeling off the r squares from how this slide shows you much of the variance in inflation does the labor market, or at least the unemployment gap explain? in recent years, it hasn't explained very much at all, but and this to climb up is very much consistent with her point it's not everything but and in fact, ther omething like 12% of the ariance is explained, and 12% of our time today should be spent talking about the labor market. his is the wore of what i wanted to talk about. these dynamics create an opportunity. flat phillips curve but we've had decades of higher inequalities, long terp real and low n for middle wage workers, lots of people in place left behind and bargaining deficits that are offset by full employment. and so i recently wrote a paper where we concluded that these changing inflation dynamics in tandem with the i just went through should create asymmetry function.d's reaction elevate the benefits of full e

soaring the numbers in the federal budget office, the cbo projected deficit for fiscal 2019 to hit $984 billion, up 26% from last year. expert say the main drivers are the atlantic spending programs, medicare, medicaid and social security. protesters mark one year since brett kavanaugh's confirmation by demanding his impeachment. what is really going on? co-author of justice on file about the confirmation battle joins us live next. new pasta and grill combos starting at $9.99. only at applebee's. it's what gives audible themembers an edge.listening; it opens our minds, changes our perspective, connects us, and pushes us further. the most inspiring minds, the most compelling stories: audible. they use stamps.com all the services of the post office only cheaper get a 4-week trial plus postage and a digital scale go to stamps.com/tv and never go to the post office again. somand with the xfinityreen is stream app,reen. get a 4-week trial plus postage and a digital scale which is free with your service, you can take a spin through on demand shows or stream live tv. download your dvr'd shows

i want to thank everyone who's here, all of the cbo partners, oewd, joshua, arsay. he was literally here at 9:00 sweeping with his team, fatinya homes, ground movement, shamon, asha. he's not lying about what he said. are you sure you want icy do it? he was, like, yes. so i thank you for leaving this in my hands and this is my way of thanking my father and grandmother for the work that they've done -- excuse me. [cheers and applause] >> to be able to do this in her honor is my way and honor to pay homage to those who have come before me and who have created pathways. i hope to create pathways for other residents in the omi like i had. i went to school in san francisco, born and raised in this community. i am so honored to be able to give back to the neighborhood that i grew up in and sorry for the tears, guys. at this time, i want to invite up my new boss, dionne j. bri dionne j. brickter. >> i work for gwenn and the entire district of district 10. i'm the executive director of young community developers. i always tell myself we have the best weather in district 10

congressional budget office projects the deficit will top $1 trillion in the current budget year and the cboimates it will stay over 1 trillion in the next decade. solid earnings drove stocks up today, the dow gained 152 and a half, the s&p 500 finished at 12, the nasdaq rose 57. for the week, the dow was up seven tenths of a percentage point, the s&p 500 gained one on a corner and the nasdaq finished ahead almost two. there are growing worries tonight that an app used by your teenager or someone else you may know make pose a danger to the u.s. national security. the app is called tiktok and some people feel it could be a ticking time bomb on the internet. >> if you haven't learned about the latest social media apps to go viral in the u.s., the millennials in your life definitely have. that app is called it tik tok it is being used by nearly a billion and have people worldwide. it's owned by china and is sometimes used by isis emma it allows users to send a short and funny personal videos to catchy music. everyone from tom brady, reese witherspoon, and will smith to the teenagers in your bas

my mentor who is still the executive director and through the collaborative efforts in working with cbos and like denise says, our colleagues of probation, sheriff's department, police, and the community to develop sort of the juvenile re-entry unit which was just a collaborative team and then there was the league program. i hope that effort would speak volume in sort of, like, what i can bring to the disarming the differences and looking at the why's and why are we here. because really folks are trailblazing and this is a big city, and it is really down to what is about these kids. thank you. >> supervisor walton: thank you. next we have valentina sedeno, seat two. >> good morning, supervisors. okay. i am honored to apply today for seat number two. an active member of the mission peace cla cla b rative and the financial -- collaborative and justice coalition and san francisco nate frif the mission living in the bayview as well. and really speaking to just person who has been formally impacted by the system, multiple systems, and through the juvenile and foster care. i am still directly

unique experience of already having worked 15 years at a model program for probation youth with many cbos working to serve at-risk kids and i saw how programs working together will make a difference to turn and to succeed. this was part of the county courts school system model and produced many successful stories and home use in san francisco. for the past 13 years i have been at woodside with learning staff and counselors and continue to learn and the one thing i learned is the foster youth need with the better group housing to run from many places and with the part of the design in san francisco and partially from the people and from the communities. and they need to come to youth and youth can't be expected to travel to many places for the services. there has to be a few different locations and to arrive for the engaged in mental health services first and get ready for the day and not expect them to go to five straight academic practices and a job after the school. the services need to be mix and best served youth and the california education code permits schools to be creative and to

note that since the break or towards the end of break we did get this congressional budget office's cbo score of $345 billion in savings just in the medicare part d part of the bill. other savings $158 billion in savings for family households. $46 billion of rebates and the rest. so savings are considerable, and the congress will decide how some of it will be reinvested into innovation at the national institute of health, perhaps at community health centers across the country and expanded benefits for medicare, visual hearing, dental. perhaps committees will hear back from them in just trying to lower the cost to the community. bobby scott's committee is marking up this bill. but as many of you know earlier in the week we announced his college affordability act, and we're very proud of the response from the members on that. and that will be making college less expensive. we're still at work on the u.s.-mexico-canada trade agreement and making progress every day on our path to yes. but we're not there yet. the soonest we can get the assurances from the administration and from the other -

melissa: would it surprise you to know that according to the cbo, revenue from companies went up 12%revenue? even though the rate was lowered as you said, the treasury took in more money? the government took in more money from companies, 12% or more. >> a lot is result of revenue growth that took place. melissa: right. >> proof positive point it would work. would create more revenue. more revenue creates more jobs. look at capital expenditures. look what is happening in the mergers and acquisition area, ey corporate capital index is saying that 79% of the ceo's say next 12 months they will see margin and revenue growth, melissa. melissa: good. bob, such great analysis. thank you so much for coming on. hope you come back soon. >> thank you. melissa: real interesting conversation. connell: we have the nation's third largest school district on strike. we'll tell you about that. why the 3,000 teachers in chicago are on the picket line. ♪ do you recall, not long ago ♪ we would walk on the sidewalk ♪ ♪ all around the wind blows ♪ we would only hold on to let go ♪ ♪ blow a kiss into the sun

we're going to try to walk through it this is the weekly chart of the cbo, the viks for short, knownthe fear gauge. it tends to do a good job of capturi capturing the overall level of terror in the market, the volatility people are paying for s&p options, it tends to go down with investors are complacent and up when they are afraid. you can argue this is a measure of complacency what garner likes in this chart is the commodity futures of trading commissions weekly, commitments of traders report. which tells you what certain types of investors are doing with the vix futures what we care about is the large speculator category, money managers, and it can give insight into when a trade may be right or too crowded keep that thought in your mind the vix futures speculations are net short of about 155,000 contracts. not far from what garner would consider to be an overheated short trade at around 1,700, 170,000 contracts. 170,000 would put it up here okay keep all of these. these are all important so i don't want to, i know there's too much here, but this is really important because why doe

if you look at cbo data even in 2008, health care was means tested federal programs. by 2028 it's going to be 71%. so health care, if you're talking about a public charge, if you're talking about public entitlements, you're kind of really talking about health care just in crude numbers. it's not possible to talk about this issue without talking about health care. a hundred years ago, absolutely, it was possible to talk about this issue without talking about health care. health care was not really that important of a thing. but really, these days when you're talking about burdens on taxpayers, it's really all about health care that we're talking about. so, the other thing that i think really has changed recently and again, this is really from a health care perspective, is what happened with the affordable care act. prior to the affordable care act, we obviously had the medicare program, which is for elderly and qualifying disabled individuals. people who paid into the program over large periods of time. we had medicaid program which prior to the affordable care act had

if you look at cbo data, even in 2008 health care was 52% of means-tested federal programs.2028, it's going to be 71%. so health care, if you're talking about a public charge, if your talking about public entitlements, you're kind of really talking about health care just in crude numbers. it's not really possible to talk about this issue without talking about health care. a hundred years ago, absolutely, it was possible to talk about this issue without talking about health care. health care was not really that important a thing. but really these days when you're talking about burdens on taxpayers, it's really all about health care that we're talking about. so the, the other thing that i think really has changed recently and then, again, this is really from a health care perspective, is what happened with the affordable care act. we obviously had the medicare program which is for elderly and certain qualifying disabled individuals, people had paid into the program over large periods of time. we had the medicaid program which had been for various sections of what's called cate

the cbo says deficits have been growing faster than the size of the economy for four years in a row and washington has no appetite to deal with it but the symbolic has yet to hit the $1 trillion during president obama's first term, it could jump if the economy goes into recession. a scary thought there. >>> still ahead, will the president's personal attorney rudy giuliani cooperate with the impeachment inquiry? what he is saying in a new interview with the daily beast. >> plus, house democrats issued new subpoenas related to president trump's decision to suspend u.s. aid to ukraine. legal analyst danny cevallos is here to weigh in on all of that. we are back in just a moment. at in the storied tradition of his great-great-grandmother, goldi knows to never compromise. too shabby! too much! too perfect! i can rent this? for that price? absolutely. what is this, some kind of fairy tale? it's just right! book your just right rental at thrifty.com. oh! baby bear! he'd be proud of us. protect your family, your business and everyone who counts on you. see how lincoln can help. ( ♪ ) only tylen

think it's really important to note that since the break, toward thend of the break, we did get the cbo score of $345 billion in savings just in the medicare part d part of the bill. other savings, $158 billion in savings for family households. $46 billion in rebates and the rest. so the savings are considerable, and congress will decide how some of it will be reinvested into innovation at the national institutes of health, perhaps in community health centers across the country and expanded benefits for medicare, visual, hearing, dental. that's up to the committees. we'll hear back from them and just trying to lower the cost to the community. bobby scott's committee is marking up this bill, but as many of you know, earlier in the week we announced the college affordability act. we're very proud of the response from the members on that, and that will be making college less expensive. we're still at work on the u.s./mexico/canada trade agreement and making progress every day on our path to yes, but we or not there yet. as soon as we can get assurances from the administration and from ever

the cbo projecting the deficit for 2019 to hit $984 billion, up 26% from last year. experts say the main drivers of the automatic spending programs, medicare, medicaid, and social security. protesters mark one year since justice brett kavanaugh's confirmation to the supreme court by demanding his impeachment. [inaudible] >> shannon: what is really going on? coauthor of the best selling justice on trial about the camera confirmation battle, carrie severino joins us live next. ♪ ti man 1: ...caused liver damage. vo: epclusa treats all main types of chronic hep c. vo: whatever your type, ask your doctor if epclusa is your kind of cure. woman 2: i had the common type. man 2: mine was rare. vo: epclusa has a 98% overall cure rate. man 3: i just found out about my hepatitis c. woman 3: i knew for years. vo: epclusa is only one pill, once a day, taken with or without food for 12 weeks. vo: before starting epclusa, your doctor will test if you have had hepatitis b, which may flare up, and could cause serious liver problems during and after treatment. vo: tell your doctor if

revenue has come in more than 100 billion dollars lower than -- david: this is a new report from the cbo. it is fiscal 2019 increase of 12% in corporate tax revenues. >> it increased 12% and it's 100 billion dollars below what was expected and forecasted. david: 12% above -- >> my guess is most people didn't see that coming. >> these tax cuts have not paid for themselves at all. it's why the tax bill is the most unpopular tax cut in the history of american polling. david: we're going to have to leave it at that. we have run out of time. austin goolsby, you're going to have to come back. we love the conversation. thanks for being here. you are a good man. let's coming up -- let's see what's coming up on the evening edit. ashley webster is in for liz >> the stakes are rising with the china trade war. we will talk about what to expect tomorrow when president trump meets with one of china's top envoys. also a healthy dose of political intrigue. all coming up at the top of the hour. david? david: looking forward to it. do you have an amazon cloud cam? you may want to listen up because your ho

that's from the cbo. one of the other affects has been to current navigators across the country. there's a lot of information coming out that navigators are in fact if you go to the family foundation and the government accountability office report from the past few months. they will say, hhs is peddling false information and these navigators are brokers and foreign but navigators to not have allegiance to insurance and they have enough to consumer. they will often help go through all their affordable option and so it's really unwise to a live in a navigators at bark it you're owed plants and cut outreach and all these things undermining the health insurance goal for families. >> i chair now recognizes the ranking member walden from oregon. >> thank you for being here. we appreciate your leadership in the agency and through these discussions. i wanna talk about the navigators because in the cms report from 2016 which is before the trump administration, for 2017 they received 62.45 per million a federal grants and 21 individuals which i understand that right equates to 767 dollars

. >> the cbo only looks at federal taxes.al tax revenue in the u.s., 20% national income. today each group pays around 28% of their income in taxes except billionaires who pay 23%. >> there's some regressivity in federal taxes you're talking about the lowest quinn tile is at 1.7% of federal taxes now in state taxes it's 11.7 versus 8% for the higher quintiles. you get from 1.7% to 25% taxes paid by the lowest quintile. that's mathematically impossible. >> we can have a mathematical debate but you need to realize the working class pay a lot in sales taxes, consumption taxes. >> what about the earned income. >> they get the refund when tax time comes -- >> did you have the earned -- did you just back that out and -- did you back that out >> i know that what i'm saying is reality of american society is that poor cash constrained people pay a lot of taxes throughout the year. >> one of the ways we deal with this to make it more progressive is with the earned income tax credit that's a huge -- that makes it much more progressive,

for example, there's a recent cbo number. that's a ten-year overall cost and by itself looks very large, but that's only 3.5% of the defense budget on top of the 3.5% that we spend to maintain the system that we have. that defense budget is itself a fraction of the discretionary budget of this nation, which is also a subset of the overall things that this nation chooses to spend its resources on. so if you do that math, the recapitalization is a fraction of a percent of all the things that this nation chooses to apply its resources to, and that's what buys our deterrence and defense against the only existential threat this nation faces. i think that is a good investment. in the words of former secretary of defense mattis, this nation can afford survival. >> thank you for that. i think that's very compelling. let me ask you about the nuclear posture review, which stresses the need to integrate conventional and nuclear forces. could you define for us conventional nuclear integration and maybe give us a sense of why it's so impo

don't know what the richest 400 pay in tax, they pay based on corporate profits recent numbers from the cbo3% of federal taxes, 14% at the bottom. that's obama's former economic adviser, looked at taxes paid, found the top 1% paid 40% versus 20% for the bottom he tweeted standard data shows the tax system is overall progressive. back to you. >> thank you robert frank important story as we continue to watch the tape. dow holding a tight range, up almost 400 we said earlier, back above 2982 vix is almost a 15 handle, hovers above 16. which is low compared to where we have been the last several weeks. apple hitting an all-time high does the stock have room to run? we'll debate that next on "squawk alley. don't go away. >>> good morning it is 8:00 a.m. in cupertino, 11:00 a.m. on wall street. "squawk alley" is live. ♪ ♪ >>> good morning welcome to "squawk alley." i am carly fiorina with morgan brennan. jon fortt has the morning off. going to start the hour wi

i'm trying to get the cbo to admit that it's revenue neutral. to medicare, social security, medicaid is going up 4 to 5% a year so it's unsustainable. >> great to have you on set. >> thanks for having me. >>> when we come back, technology under fire. facebook ceo mark zuckerberg prepares to head to capitol hill this week. we will tell you what investors need to watch next. >>> stay tuned, you're watching "squawk box" on cnbc and we'll be right back. ♪ ♪ ♪ ♪ ♪ ♪ ♪ man: how can i deliver superior long-term results? it begins with a distinctive approach to managing money. that for over 85 years has focused on keeping confidence up when markets are down. an approach where portfolio managers work well independently. and even better together. who don't just invest, but are personally invested. can i find a proven approach designed to deliver results? with capital group, i can. talk to your advisor or consultant for investment risks and information. a /* >>> it's a big week for mark zuckerberg he is expected to testify wednesday on capitol hill for the

had to say you hear what larry somers has said and how these numbers don't match up with anything the cboebate i agree with someone, i can't see who's saying what. >> probably robert. >> the question is not -- the question is not a comparative who's paying more or less in the first place you really can't tell there's so much uncertainty there. people's emotions and ideologies influence that the questions are, one, could we use more revenue to accomplish purposes that are important to the society that can only be done through government? secondly, how do we raise that revenue in a way that is not going to interfere with economic growth and then there's also a fairness question who can afford to pay it without having any kind of diminution of their quality of life. so all of those argue for me, yes, we can increase taxes on the wealthy. the problem is that we have many unmet needs. the biggest example for me is infrastructure there's a bipartisan agreement that we need infrastructure. i notice the world economic forum just downgraded america's competitiveness -- >> i just saw that singapore

i include a chart which i think is one of the most fascinating and scary charts, which is that the cbond if you go back that far, whether it's the civil war, world war i, the great depression, our debt is higher than that in a time of peace and prosperity. the only instance in which it's been higher was world war ii. but that was a short-term event once fighting was over, debt dwindled down. that's not happening now because people are going to keep retiring and living longer and healthcare costs are going up. and so in the coming decades, we're going to blow past that world war ii record. only it's not a one time event. this is going to be happening for decades. and the second set of challenges is that even as the millennials are facing this massive federal debt, they're also facing a lot of challenges in their personal lives in terms of student loans and housing costs and healthcare cost. and so it's sort of they're being hit by the double whammy. >> yeah. you know, it is -- it's incredible that it actually took us over 200 years to accumulate a total of a trillion dollars debt. we do

note that since the break toward the end of the break we did catch the congressional budget office's cbo score of $345 billion in savings just in the medicare part d part of the bill. other savings, $158 billion in savings for family households, $46 billion in rebates and the rest. the savings are considerable and the congress will decide how some of it will be reinvested into innovation at the national institutes of health, perhaps in community health centers across the country and expanded benefits for medicare, visual, hearing, dental. perhaps committees will hear back from them and just trying to lower the cost to the community. bobby scott's committee is marking up this bill, but as many of you know earlier in the week we announced his college affordability act and we're very proud of the response from the members on that and that will be making college less expensive. we're still at work on the u.s./mexico/canada trade agreement and making progress every day on our path to yes, but we're not there yet. as soon as we can get assurances from the administration and from the everyone i

i think so far today we've only used cbo's because that's only a mouse click away. so there's that. at any rate, then you start peeling off the r squareds from that. this slide shows you how much of the variance in inflation does the labor market or at least the unemployment gap explain. in recent years it hasn't explained very much at all, but it's started to climb up. this is very much consistent with katia's point that it's not everything but it's not nothing either. in fact, something like 12% of the variance is explained. therefore 12% of our time today should be spent talking about the labor market. these dynamics create an opportunity. yes, there's a flat phillips curve. but at least as important we've had decades of higher inequality, long-term real stagnation for middle and low wage workers, lots of people in places left behind and bargaining power deficits that are offset by full employment. i recently wrote a paper with keith bentley where we concluded that these change in dynamics should create a symmetry in the fed's reaction function to elevate the benefits of full emp