welcome back to "the kudlow report." give me your assessment. >> good to be with you. >> does plan b pass, and now with this added spending cut, is it more likely that plan b will pass? >> well, larry, i just left the house floor moments ago as a member of the whip team. i'm confident that speaker boehner has the votes for plan b. this is a good proposal not only for our republican party, most importantly, a good proposal for the american people. you know, larry, some people in our country and some people within our party believe that republicans have the white house, the senate, and the house, and the fact of the matter is, after $2 billion being spent in the last election, we have divided government. and so in a perfect world, what i love no one's taxes going up? would i love low marginal rates to spur growth? the best prescription? absolute absolutely. we have a president who just got re-elected saying it is his mission to raise taxes on small businesses and individuals who make more than $250,000 and john boehner mad

i'm joe joe kernen in for larry kudlow. the fiscal cliff, gun control in detroit dominating the news. >> there's no question about it. if you want a deal on the fiscal cliff, today was a very bad day. only duelling press conferences. no progress behind the scenes. we'll talk about it a a few minutes. >> i'm hampton pierce earson. >> and gm shares got a nice pop. is this the end of government motors. "the kudlow report" starts right now. >>> first up tonight is president obama and house speaker john boehner escalate their war of words, new signs the fiscal cliff talks are on the brink of collapse. chief washington correspondent john harwood joins us from washington with the details. i look away for two seconds, john, and everything's falling astart. >> it looked a couple of days ago as if the two sides were getting closer. when president obama had a news conference at the white house today, he came out to talk about gun control measures in the wake of the connecticut tragedy, but the questions were mostly focused on the fisc

i'm larry kudlow. this is "the kudlow report." we have late breaking developing stories starting with a surprise obama-boehner white house meeting on the fiscal cliff. we also have big changes in the obama cabinet, and more wild gyrations in the stock market. first, eamon javers is on capitol hill. good evening. >> good evening, larry. it was a showdown at the white house between the speaker and the president of united states. i'll bring you all the details here on who was inside that room over at the white house today. >> all right, thank you. >> and there was a twist this afternoon from president obama's favorite for secretary of state. ambassador susan rice withdraws her name from the running. i'll tell you coming up what lead her to make the decision. >> and i'm jackie deangeles. ongoing jitters over the fiscal cliff continue to keep the markets on edge. the decline is all across all ten s&p sectors. "the kudlow report" starts right now. >>> first up, we begin with breaking news out of washington tonight with just 18 days unti

i'm larry kudlow. the republicans may make another compromise with their latest counter offer on the fiscal cliff. not as many spending cuts as they originally wanted and slight entitlement reform. the white house has just reject this offer out of hand and once again it solely is because it doesn't raise tax rates on the rich. when is obama going to rise above that obsession? when will he lose that over rich people and tax rates? i don't know. tonight, i'm is going to try to call his bluff. anyway, also breaking tonight, potential catastrophe if syria uses its chemical weapons. president obama issues a stern warning to syria and i quote the world is watching. and there will be consequences if syria uses these wmds. have we just committed ourselves to another war? and the gun control debate is squarely back in the spotlight tonight after the murder/suicide by nfl player in kansas city, second amendment instead of blaming the sick people who use them. republicans have responded to a fiscal cliff counter

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i'm larry kudlow. this is "the kudlow report." so the blame game over the fiscal cliff grew a bit louder today with the president playing part of the anti-santa. going so far as to say he's keeping a list of congressmen. that sounds like an enemy's list to me. we're going to talk some more about that. >>> the president also saying if the republicans can't compromise, the holiday season might be an unhappy one. >> that's sort of like the lump of coal you get for christmas. that's a scrooge christmas. >> and the republicans they say that the democratic offer is not a serious one. check it out. >> let's not kid ourselves. >> so where do we go from here? and the business world itself is waiting to see if we drive off the cliff. they're taking action right away. deals are being done to sell companies. stocks, homes, dividends, almost anything to avoid a big tax wallop after the first of the year. you see, folks, as i've said for so long, taxes do matter. later on we're going to tell you exactly why. first up the president place santa c

welcome back to the "kudlow report." i am larry kudlow. one week after the devastating school shooting in newtown, connecticut, left 26 people dead, the national rifle association is breaking its silence. the gun rights group is calling on congress to put armed guards at every school. it's a very interesting development. actually, we could bring in -- let's go right to nbc's danielle lee. she's going to join us with the nra details. good evening, danielle. >> reporter: larry, good evening. after a week long talk about gun control and protecting our children, the situation isn't fewer guns, but more of them on camp campus. the nra's leader blamed the media for a culture of violence. and also accused the country of failing to protect our children by not putting police on every campus with guns. >> the only thing that stops a bad guy with a gun is a good guy with a gun. >> even supporters of the nra called the organization out of touch with america. lawmakers and top educators fired back. they say any solution also needs to include gun contro

"the kudlow report" starts right now. let's get the latest on the snag on the fiscal cliff talks and surprise news we are going to reach the debt ceiling in days instead of just a few months. john harwood has the details. what's going on? >> not a whole lot of actions going on. although there have been some developments. let me bring our viewers up to date on those. first of all, treasury secretary geithner this afternoon announced the united states would hit the statutory debt limit on monday. that's new year's eve. that's part of an effort to pressure congress to act to raise the debt limit which may or may not be direct limb reply indicated in the fiscal cliff talks but it is relevant to the larger issue of debt and deficits. the treasury can move money around in certain ways to extend the point where we actually reach a crisis for probably a couple of months. but this is an early warning sign. secondly, republicans in the house sent word to democrats in the senate, white house, it is your turn now. we acted to put off

i'm larry kudlow. this is "the kudlow report." a breaking story tonight with legal and financial consequences. the supreme court will rule on gay marriage. two separate cases scheduled for early next year. it's a social issue but also a big financial one. this will affect billions in federal and private benefit payments. >>> now to the really big financial story, the fiscal cliff. house speaker john boehner says president obama has wasted another week by not making a real proposal. meanwhile, republicans are divided and senator rand paul on this show last night may have made the most constructive proposal of all. >> i'm happy not to filibuster it. i will announce tonight on your show i will work with harry reid to let him pass his big old tax hike with a simple majority if that's what harry reid wants. then they will be the party of high taxes and they can own it. >> all right. without that kind of republican strategic retreat, the december 31st deadline is not likely to be met. in today's jobs report it was positive and it beat t

i'm laugrry kudlow we will be right back. two years ago, the people of bp made a commitment to the gulf. bp has paid over twenty-three billion dollars to help those affected and to cover cleanup costs. today, the beaches and gulf are open, and many areas are reporting their best tourism seasons in years. and bp's also committed to america. we support nearly 250,000 jobs and invest more here than anywhere else. we're working to fuel america for generations to come. our commitment has never been stronger. >> whow does taxing the rich hep the poor rise above poverty and get a job? let's talk to larry elder. he is the author of the great book, "dear father dear son". welcome back. how does taxing successful wealthy people help the poor get out of poverty. well for people who think like i think it doesn't make any sense. but understand something, that is not what this is all about. this is about squeezing the gap between the rich and the poor. if growth suffers, so be it. i mentioned this guy before. one of the biggest unions larr

i'm kudlow. we'll be back soon. >>> welcome back to the "kudlow report." facebook is paying interns the astonishing sums of $5,600 a month. that's about $67,000 a year and $25,000 more than the average u.s. salary. well, tech companies pay well because they want to recruit top engineering and math talent. the corporate taxes may be part of the fiscal cliff talks. here is dan mitchell, senior fellow at the cato institute. google stashed $10 million in bermuda, hp has almost all of its cash offshore and apple said to shareholders, two-thirds of its $121 billion of cash is held outside the united states. now why is that? is it just because they hate america? >> two things to understand. number one, everything they do is completely legal. it's foreign source income that is being taxed in the countries where it's being earned. but, number, two, the u.s. has the highest corporate tax rate in the developed world. these companies if they bring that money back to the united states will be double taxed on top of what they paid oversea, yes, with some credit so maybe

i'm michelle caruso-cabrera in for larry kudlow. this is "the kudlow report." speaker john boehner calls the house back into session for sunday night. that stokes investor hopes for a fiscal cliff deal and this coming just a few hours after harry reid's comments sent the dow into a tailspin. we have complete coverage in this developing story which is happening tonight as we speak. also, as supplies from the obama team, ep achieve lisa jackson stepping down. can the coal companies finally breathe a sigh of relief? guess what happened in britain when the uk banned handguns. the surprising result that could change the gun control debate. "the kudlow report" start ises right now. >>> the big news tonight, still the developments in washington on the fiscal cliff, eamon javers joins us with the details. >> good evening, meshel. capitol hill sources tell cnbc that congressional leaders are planning to go to the white house tomorrow to meet with president barack obama and it is not entirely clear at this point when that meeting will take place and details are still bei

i'm larry kudlow. this is "the kudlow report." president obama goes before business leaders and says "we could get this done in a week" when it comes to the fiscal cliff. but tim geithner just told cnbc that we're going to go over the cliff unless tax rates go up. at the same time, two dozen republican house members signed a bipartisan letter with democrats defecting from the boehner plan. in the meantime, a nice game for the day for the dow, but a stunning selloff for apple. do you know what? fiscal cliff or not, the s&p 500 is up 12% year to date. that is a handsome gain for investors, an optimistic year, believe it or not. and we already bailed out detroit's auto industry. but now, at least one motown politician is telling president obama he should bail out detroit bankrupt city government, too. this sure isn't the free market, and i asked why should a texas taxpayer bail out detroit? >>> breaking news from syria, and it is a blockbuster. the assad regime is walking and loading its chemical weapons, ready to use them on its own

i'm michelle caruso-cabrera in for larry kudlow. a lot happened in just the last couple of hours. >> michelle, there's considerably more optimism after the white house meeting between the president and the four bipartisan leaders than there was earlier in the day. mitch mcconnell and harry reid say they're going to come out and try to hammer out a bipartisan deal that can pass the senate with enough republican votes to convince the house to act and even president obama who had been concerned that they were not going to act and challenging them for an up and down vote said he was optimistic. here's the president after that meeting. >> i just had a good and constructive discussion at the white house with senate and house leadership about how to prevent this tax hike on the middle class and i'm optimistic we may still be able to reach an agreement that can pass both houses in time. >> now what would be in that mini deal? we're talking about tax increases for people at near the top of the income scale. the question is the threshold, 400

i'm larry kudlow, your old pal. there won't be spending cuts, entitlement cuts. >> every economist -- simpson, bowles say it has to be balanced, have revenue increases and spending cuts. you can't cut your way to prosperity nor can you solve the problem with revenues. everyone agrees the president and i believe speaker baner that it has to be a balanced approach. i do believe that the american public certainly supports the middle class tax cuts. that would be a nice, good holiday present to americans. >> and they have the polls that show that. >> 98% of america would be affected by this. >> i don't favor it. but politics are politics. i get it. the election spoke clearly. the american people spoke clearly. many republicans are signing letters that it has to be a balanced approach and they have walked away from the no new taxes pledge and said they would support a balanced approach. >> i understand, dave, that this is not the reagan supply side conservative position. i'm not jumping up and down about this. meeting th

i'm kudlow, we'll be right back. [ male announcer ] citi turns 200 this year.at time there've been some good days. and some difficult ones. but, through it all, we've persevered, supporting some of the biggest ideas in modern history. so why should our anniversary matter to you? because for 200 years, we've been helping ideas move from ambition to achievement. and the next great idea could be yours. ♪ >>> as we draw nearer to the fiscal cliff, people who give away millions of dollars to their heirs are now making plans on what to do should those tax breaks go away, as i think they are likely to go away in the next couple of weeks. our very own cnbc's robert frank joins us now with the details. it's a sad story, bob. >> it is a sad story but very important. we focused a lot on the income tax, capital gains rate, dividends tax. this is huge for the wealthy. right now, you can give up to $10 million per couple to friends, heirs, whatever and then the tax kicks in. next year, that drops to $1 million and the rate goes from 35% to 55%. if you have a large estate, th

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and kudlow, think about this. no obvious route i see now to avoid the sequester other than back channel thing that harwood was talking about. and no obvious route for spending cut agreement. if the best we get is a tax agreement -- you're shaking your head, brian. >> because the people that wouldn't vote because they said it was a tax increase, are idiots. because doing nothing is a tax increase. >> we want it give larry his word. but there are some people who say without real spending cuts from the president, it doesn't make sense to give peace for two years because agreement limits the amount republicans can fight for over the two-year period. >> i agree. larry kudlow? >> i'm more optimistic on this story. >> not necessarily on spending. i dent see much on spending cuts. look, the boehner attempt was to move the ball higher on the income tax rate threshold and he couldn't do it. caucus wouldn't do it. a lot of that reason is not only higher tax rate by implication but also, they knew that it wouldn't pass the se

. >> caller: i go back to the kudlow cramer days with you when kudlow cramer days with you when kudlowmer days with you when i was a novice investor , and all your knowledge that you pass onto us i became a pretty good investor. thank you. >> oh, you're terrific. philadelphians. we're going to stick together. we're going to defeat the bengals. that's a whole other topic. >> caller: you ready for my big five? >> you bet i am. >> diagio, deo, disney dis, express scripts, pxrx. jpmorgan, jpm, and matrix sme mtrx. am i diversified with this portfolio, jim? >> all right, mr. havertown let's get on this. let's see. we have an oil and gas services company with matrix. we've got a diversified entertainment company that i think is going to go right back to 52 with disney. we have a spirits company with diageo. jpmorgan, one of the best banks. jamie dimon. express scripts which is a health care company, pharmacy benefit manager. health care, bank, spirits, oil service, entertainment, bingo. philadelphians rock. let's go to tony in missouri. >> caller: booyah to you from st. louis. i would just l

i'm larry kudlow. this is "the kudlow report." the talks are back on. team obama and team boehner are back at the negotiating table. but there is still substantial disagreement on tax rates, tax revenues, domestic spending and entitlement reform and the clock is ticking. speaking of tax hikes, europe's grand experiment with taxing the rich more is falling apart, especially in france and britain. and here at home, california and new york are passing through the 50% tax rate barrier. is anybody looking at how tax hikes fail the test of economic growth? >>> back here in the u.s., could it be michigan which used to call itself the worker's paradise union state is now moving towards new anti-union right-to-work legislation and it looks like it's going to pass? but first up, budget talks resume between speaker john boehner and president obama today. with just 25 days to go, let's keep tabs on where we stand. reports of a conservative backlash against speaker boehner simply not true. he has the solid support of his leadership and the rank and file. but there i

the kudlow report next on cnbc. bob, these projections... they're... optimistic.ctivity up, costs down, time to market reduced... those are good things. upstairs, they will see fantasy. not fantasy... logistics. ups came in, analyzed our supply chain, inventory systems... ups? ups. not fantasy? who would have thought? i did. we did, bob. we did. got it.

did you see, i tweeted that i would be doing kudlow and i said, apparently andrew gave something to kudlow. and people were writing in all this, you know, weird stuff. i was just saying that you were sick, maybe -- no, maybe kudlow has the same thing because it goes around where people work. but they were how did andrew give it to -- and does that kudlow is going to turn into a liberal? they were saying those really weird things. >> you did a great job, i have to say. i was drinking gatorade and chicken masa ball stew. >> you were? >> yes. i love it. >> so do i. it's carby, though, isn't it? >> yes. >>> anyway, let's get to washington news. house speaker john boehner is calling a vote on his so-called plan b. it would block tax increases on everyone january 1st except for those making more than $1 million. boehner hopes it will pressure the president to make concessions. >> he can call on the senate to pass that or he can be responsible for the largest tax increase in history. >> others are arguing that republics have painted themselves in a corner. >> take the deal. you are hurting people

and our thanks to larry kudlow.r, thank you for sticking around. >> oh, with the speaker and john, absolutely. >> we should note that the markets are off their session lows with the s&p 500 now down by about .9% of 1%. >>> stocks coming off session lows after speaker boehner's remarks. the dow now down by about .6 of 1%. art, great to see you. >> great to see you, melissa. >> are we off the lows because of what the speaker had to say a few moments ago, or are the buys higher in the last trading day before the weekend? >> i think the door wasn't slammed. i don't think boehner came out and slammed the door. i think there is a middle ground here still. fortunately the middle ground is going to be with bipartisan support. the ball's been tossed over to the senate. it's harry reid's turn now. but something will get over to the house to have bipartisan support. democrats need a chance to vote on something in the house. and i think that's why the market is moving forward a little bit here. i think that's what we learned at

some inherent dangers here though i'm thinking the euro zone's in a deep ongoing financial crisis kudlow is not used about aging its own affairs as a sovereign state is there a danger that it may not be able to survive if it breaks away from spain no access helen has a rich country we have two thousand two hundred thousand millions g.d.p. and actually not quite right catalonia is used for much more centuries to manage for itself as a fake us we were before the creation of the spaying of the spanish that's only three hundred centuries so we are more human these are tough times extremely tough times and you know when you do interact with the world around your course. of course and that's why the question really is how we can how we actually manage to be so productive and so active economically being inside the spanish state that it's really a question because imagine without the tax burden that catalonia suffers because we are in fact the spanish just think how well we will do how beneficial that would be for europe you know we can release doubt we will survive yes when you compare this to

the kudlow report starts now. >> all right let's go to john harwitt first in dc. think i agree with what you were saying first. >>> he moved to plan b and the hope that further negotiations could produce progress. >> our plan b would protect american taxpayers who make $1 million or less and have their current rates extended. i continue to have hope. that would reduce spending as well as revenues on the table. >> but of course the democrats in the senate. didn't see plan b as a step forward. harry reid came out and said, john boehner is walking away from the nenegotiations. >> every time we get down to something from the long-term financial think for this country. they do the charlie brown thing, they jerk the ball away. and this is what is going on. >> the posturing conceals the process that we are not aware of. but i talked to a budget aid that said, he thinks things are getting worse in terms for prospects of a deal. >> by the way, my contacts have said the same thing. you thank you very, very much. all of this may be defying predictions. it is a classic risk o

the national reviews, robert costa who is a contributor for msnbc and the kudlow report.e all. you are in the jump seat and i will give you the first chance at this. you did this interview with tom price. it's about this idea that some conservatives may try to make baper's life so uncomfortable they could challenge him for the speakership. it's clear he doesn't have the votes for any of this, but how series is boehner taking it and how much of it is impacting the negotiations? >> it's a great question. the tension within the house republican conference is very real. tom price's comments about his concerns and about a potential deal that includes tax increases reflects where a lot of conservatives are. they are wary about what speaker boehner is doing. no one is really sure about the contours of the potential deal. >> you see here there seems to be all this evidence that republicans are publicly splintering. they are not behind one position. even mitch mcconnell said he can get his tax increases by doing nothing. >> there is a long way between overthrowing the speaker and

david kudlow and bob pisani and barbara from the street. welcome to all of you. what about coming off the best levels? >> hitting search-week highs. 13,245 is where we ended the night of election and waiting for it to settle out. 13,248, so we are exactly where we were when the elections closed. i think the important thing is as long as there is some indication that they are talking the markets are holding up very well. i think the concern is after a deal happens, i think we'll have it, what will happen after, that and a lot of people are worried now that austerity is coming. that's a negative for stocks >> you make a great point, bob. david, let me put that to you because it doesn't feel like this market is expecting no deal. if we go into year end and don't have a deal, how big of a disappointment will we seek from the markets? >> i think we got a taste of that, how it ends up shaping up to how the market will react. before, that we got a taste today with hair reid and saw the markets sell off 25 points pretty quick. as we head closer to christmas or the end of

and we'll see michelle right after that on a special "kudlow report." let's give thanks - for an idea. a grand idea called america. the idea that if you work hard, if you have a dream, if you work with your neighbors... you can do most anything. this led to other ideas like liberty and rock 'n' roll. to free markets, free enterprise, and free refills. it put a man on the moon and a phone in your pocket. our country's gone through a lot over the centuries and a half. but this idea isn't fragile. when times get tough, it rallies us as one. every day, more people believe in the american idea and when they do, the dream comes true. we're grateful to be a part of it. >>> welcome back to tonight's methods to madness show. some of my best tricks for buying and selling stocks. truly, this is wisdom for the ages. think of me as penn and teller for the stock market. if that resonates at all for this group. pull back the curtain. how it looks for stocks to buy and stocks to sell, sell, sell. no magic, no hidden talent. disciplines that can make you "mad money" if

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robert costa is the washington editor for national review and a contributor to cnbc's kudlow report and msnbc political analyst david corn is the washington bureau chief for mother jones magazine. bob, you really had the backstory on what went on last night. i'm surprised to hear the congressman say it wasn't just the most conservative members of the republican house. does that comport with your understanding? >> sure. there are a few moderates who were against -- >> a few. >> a few, but this was really driven by the conservatives in the house who went to john boehner at 7:00 last night and they say we cannot support this at all. remember, there are 241 republicans in the house. boehner could risk having 24 defections. i hear the number was between 30, 50, maybe even 60 defectors. boehner pulled the entire thing from the floor, went ahead of the conference, said a prayer about serenity, and pulled the entire thing from the floor and sent everybody home. >> what was the basic objection. the congressman just said it wasn't a perception they would be participating in a raising of taxes. >>

whether or not it happens or not the fact that it's a headline, the fact that larry kudlow sat right here and discussed the possibility of going into a recession for the united states i think it makes everyone think about it again. >> all right. steve, thanks for stopping by. we appreciate it. >> merry christmas. >> merry christmas to you. and we sit here with the s&p 500 at 1425.5 down by 1.25 off session lows but this is going to be an interesting one to watch as we head into the session because we had those remarks from speaker boehner earlier and now we're taking a little leg lower. >> and shortened session on monday as well. >> that's it for "squawk on the street." let's hand it over to headquarters and the fast half. >> guys, thanks very much. welcome to the halftime show. four hours to go until the close. here's where we stand on wall street. off the lows of the day by not by that much though. the dow is still down almost 160. the s&p and nasdaq are selling off at this hour. here is what we're following on halftime. stock in motion. rim shares sink as the company surprises the

. >>> and cnbc is taking to washington today as we send becky quick, larry kudlow and jim cramim cramerthe white . they'll be leading off with a special mission critical rise above d.c. report. it's part tax. read, becky? >> like you said, we are occupying washington. this is where we've camped out all night. there's been all this talk about the fiscal cliff. we know it is fact approaching. we know it is something that would threaten not only the united states economy, but the economies around the globe. if we go over that cliff, there will be steep cuts and spending and steep tax increases that would automatically kick in. what we're doing here today is talking to our elected officials, talking to people who are involved in these talks, trying to figure out what will happen, where we are and if there's any way to avoid that cliff, if there's a good way to come about with tax reform and a close look at what's been happening on the spending side, as well. we have a lineup of a lot of gets who are here. joining us this morning, early on we'll be joined by representative jeb henserling. he

. >> with friends like that -- >> with all due respect to my ex-partner larry kudlow with all due respect>> the treasury secretary talks about how he does not think that in the end the gop is going to prevent tax rates on the wealthiest from rising. this is what he said. >> what we're trying to do is make it more likely we come together on a good agreement for the american people that extends tax cuts for the middle class, brings our long-term deficits down. tough spending savings as part of that and invest in things that matter to the american economy. we think we can do that. we have a good chance to do it now. it's important that we do it. i think we're going to get there. >> given tough talk over the weekend, why aren't we waking up to down numbers, red arrows? >> europe is terrific. bond rates are phenomenal. a great run. china numbers are better. i think that there's a lot of people who feel like doug cast does who writes with me with a piece in "the new york times" saying that -- >> most stuff is nontaxable accounts any way. most stocks that people won't be as motivated to sell as

anything or shouldn't do anything based on the tax consequences -- >> we talked about that on larry kudloww the amount of money that the government collected from capital gains doubled right before the capital gains went up to 28%. and then the next year -- they front loaded. the wealthy can manage their income much more than average ordinary income. >> they can when tax laws change. once you get into a situation where tax laws are more stable and not -- >> it's smooths out. it smooths out. but the point is next year as joe just pointed out we'll see in 1986 those gains fell by more than half. the government collected half what they did the previous year, so we're going to see a really spiky income and revenue situation for the next two years. >> the question is what would happen, though, if you had a simpson/bowles-type plan. it plans to take dividends to 28% along with ordinary income. but 28% is higher than it would go up under most of the proposals. >> but this all begs the question of a great example this whole fiscal cliff the conversation we're having right here around the table abo