ylan mui joins us from washington.he big thing we see is a lot of spending cuts. >> this is a dramatic rethinking of the role of government from the previous administration. there are big tax cuts and big cuts in social safety net programs, some of which previously enjoyed bipartisan support. 1$1.7 trillion in reductions to those programs are included in this budget. roughly a third of that comes from changing the funding formula from medicaid and phasing out money to the children's health insurance program, more nonely known as c.h.i.p. another 272 billion is from broadwell fair broad welfare re. student loans are also in for big changes. the white house wants to combine several programs into one. the president's budget is just really a risch liwish list. it's up to congress to turn that into reality. and trump will need democrats' help to pass it chuck schumer said this budget takes a meat cleaver to the middle clast while cutting taxes for the wealthy. mick mulvaney called this a taxpayer first budget and said the w

. >> and, ylan, it's telling.ou mentioned that the majority leader of the senate said they will wait for the cbo scoring before they proceed with the version of the bill here. i think they are waiting to find out exactly how many people are affected by this thing, right? >> that's a big point of contenti contention, a big point here in the house. i'm told that the senate majority leader has started trying to come to some con sen tus in the republican caucus, has working groups between conservatives and moderates. those to look for, ted cruz, mike lee, pay attention to them because they are oning originally against the ahca and worried it did not do enough. they could cause pickups, pr perha perhaps, tlohroughout the proce as pell. >> dan, as we figure out how it proceeds, we have to figure out what it means for everybody. today, what happens under this bill? >> yeah, look, one, i think there's a lot of misinformation about what -- who loses coverage, you know, there are clearly going to be changes in medicaid wher

let's get to ylan to explain why. ylan? >> kelly, it's all about how much the bill would cost.re trying to use a strategy called reconciliation to cast their politically charged bill without support of democrats. they need 50 votes in the senate plus the vice president, but in order to do that, the legislation cannot add to the deficit, and, actually, for in bill, the bar is a little bit higher than that. it has to reduce the deficit by $2 billion. now, that -- that was not a problem for the original version of the bill. congressional budget official estimated it would have reduced the federal deficit by $337 billion over the next decade. remember, republicans made changes to the bill to get both conservatives and moderates on board. it now allows states to opt out of providing benefits and allocates an extra $8 billion to help people with preexisting conditions of cove roj. the house passed that bill before the cbo could estimate how changes affect the cost. one analysis for sender of responsible budget said it either saves $5 billion or costs $265 billion. the house is not se

aren't you, ylan? >> reporter: sorry, bill, what was the question?eaking up. >> the public opinion poll, 62% of the public in favor of a border adjustment tax? >> reporter: so this is the poll that was conducted by a center from harvard university and harris poll showing surprisingly large numbers of of people supporting it. i was surprised 62% of americans knew what the border tax was much less support it, but it was a poll independently done. >> very, very interesting. >> we got to look at that again. if they support it, is that weeding out the people who heard from it and not? >> who wins? the public or the lobbyists who favor -- who represent industries that would not want this to happen? >> feels like it's the exporters versus the importers right now. >> thanks, ylan. >> interesting. >> we're still talking about it. >> 62% of the public favors it? that's why we talk about it. >> absolutely. >> right. >> 15 minutes to go, dow positive now, slightly, nasdaq up 17, another session high. >> summer's almost here, says -- as a matter of fact, 90 degre

what's he looking to accomplish, ylan?rter: kelly, one of the big fears among officials here is the united states might implement a border adjustment tax raising cost of foreign goods, but a treasury official told me today that a border adjusted tax in the current form does not work. that is some of the strongest language we've heard out of the treasury department on this issue, and it should be a relief to officials here as they convene for the g7 finance minister's meeting, but it does not solve the bigger frustrations that many countries have over u.s. companies, particularly in the tech sector, shifting profits to low tax jurisdictions. italy has been one of the countries that's been cracking down on this issue. they settled with google recently for $334 million in back taxes. they did the same with apple just a few years ago. meanwhile, france is now charging air bnb to collect tourist taxes, and apple is locked in a court battle with the european union over $13 billion in taxes that the eu says is owed. as a post cou

ylan, what's happening?ouse is starting to warn that the debt ceiling could be reached late this summer. that's according to two of my sources. senior staff in the white house treasury department and omb dli delivered the message to conservatives in a meeting yesterday. congressional budget office previously estimated that the country would not hit the debt limit until the fall, so this could catch markets off garuard. mulvaney said it comes sooner than expected because taxes coming more slowly than anticipated, but the treasury secretary will not directly address the timing in his testimony on the hill, but repeatedly urged congress to raise the debt limit before lawmakers leave for the august rece recess. now, the actual date of the deadline remains unclear. tends to be a moving target, but already conservatives are in a battle for raising it. the house caucus said this week any increase should be paired with spending cuts, though they prefer a clean debt limit bill. back to you, kelly. >> there's nothing

ylan is in washington with the highlights and maybe the lowlights.>> reporter: kelly, senator schumer called it a meat cleaver to the middle class. there you go. some of the new names used. the reason why he's using that language is $1.7 trillion is cut to social safety net programs over the next decade. some of the pro-growth affected are social security, disability insurance and others could face changes under the president's proposal. the omb director defended those cuts in a briefing this morning saying it's a budget that puts taxpayers first. >> compassion needs to be on both sides of the equation. yes, you have to have compassion for people receiving federal funds, but comparison for the folks paying it. >> reporter: democrats are not buying that argument, however. mulvaney testifies before the house budget committee tomorrow in already the ranking democrat on that committee is slamming the proposal and saying that it should be, quote, resoundingly rejected. >> the president's budget is a betrayal, line by line broken promises he made to the am

ylan mui is live with the story. ylan. >> reporter: tyler, that's right. the white house is taking a page from the playbook here in kansas where the governor cut the rate all the way to zero. that was supposed to be a shot of adrenaline that paid later on in growth but instead has blown a hole in the state budget and the hit to schools in particular is turning public sentiment against these cuts. we don't have the resources to pay. that's been a huge challenge. >> reporter: a third generation family farm that makes food processing equipment. they say they've saved $18 million from the tax cuts reinvested in new it technology and new jobs and sam brownback told me that's evidence that his policies are working and the white house should be paying attention. >> if they want to grow jobs and want to grow small business, these are some of, i believe, the best income tax cuts you can make. >> reporter: kansas lawmakers will be debating whether or not to repeal the tax cuts so, guys, we'll see how much longer the kansas experiment can last. >> you talk about the

y l ylan mui is there. >> reporter: they talked about tax reform.ght up with the secretary after the meeting was over. hi, secretary, how was the meet something. >> very productive. thank you. very productive. >> reporter: you know, a gop source within the meeting tells me they talked about creating unified pro growth tax plan and that chairman brady said that he is not going to have the same approach on border adjustment as he has had in the past. he is recognizing they need a new design and a new approach for that. however, they did not talk about alternatives in that meeting. now this all comes before the big meeting on tax reform. it's the first time that members will have. so talk about all these issues out in the open. we will bring you more on that tomorrow. >> cool. i think brady is on "squawk box" tomorrow morning. appreciate that, ylan mui in walk. >>> up next, how warren buffet got burned in texas after a new bill was pulled from consideration. we'll be right back. the new guy? what new guy? i hired some help. he really knows his wine. th

. >> all right, ylan mui with breaking news on karl icahn and credit for the credit industry.e'll take a short break, ponder this and come back to talk about amazon and the echo. do not worry. more on the breaking news involving mr. icahn. ahn. whether it's connecting one of the world's most innovative campuses. or bringing wifi to 65,000 fans. businesses count on communication, and communication counts on centurylink. >>> welcome back here. regarding the breaking news ylan mui said information requested around carl icahn's trading of biofuels credit, you have to be careful. there are two companies here that may be involved because they're both controlled by carl icahn. both located at the same address. cvr refining cvrr ticker, and parent company cvr energy which is cvi. again, same location. both controlled by icahn. cvr refining is a subsidiary of cvr energy. so it's possible, melissa, they're both potentially involved. >> definitely. but specifically when it comes to what the investigation will look into, the investigation called for by eight u.s. senators, it's the gain t

ylan mui joins us with more. >> reporter: tyler, this was retailers' first opportunity to make their directly to the treasury secretary. when retailers were at the white house back in february, mnuchin had not yet been confirmed. a source familiar with the discussion told me their conversation was, quote, very constructive, and he said the secretary reinforced the principles for tax reform laid out by the white house and that do not include the border adjustment tax. mnuchin said this proposal does not work in its current form but retailers are not taking any chances here. about half a dozen of the executives who met with mnuchin this morning are heading to including autozone, dollar general, and pet smart starting in about half an hour with representative patrick mchenry, chief deputy whip in the house and will meet with three members of the ways and means also in the house. now supporters of border adjustments say retailers are updating a broken tax code. the american made coalition which includes big manufacturers like boeing and dow chemical, they point to a poll that shows 62% o

ylan mui is with us. >> reporter: sarah, this is the first meeting between retailers and the secretaryustment tax. expecting to see ten companies meeting with the treasury secretary today, that includes executives with jcpenney, autozone, chico's and ikea. they're arguing that the border adjustment tax would increase the funds and that would increase cost for consumers. retailers are saying that households could pay $1700 more each year if this proposal goes through. they're also going to be arguing that the border adjustment tax could erode their profit margin. that's in a sector that pays one of the highest effective tax rates of any industry, 36%. they're also pointing out that they employ 42 million people and this would be a big blow to an important sector for job growth and economic growth. retailers, however, may be preaching to the choir on this point. treasury secretary mnuchin said he does not believe that the border adjustment tax will work in its current form and there is heavy opposition to this proposal in the senate, even among republicans. support of the border adjustme

ylan, thank you very much. >>> tesla's seeing higher than average injury rates at the car plant in 2015y rate was 31% higher than the industry average. our phil lebeau has context. phil, the story caught attention. >> it does, kelly. in part because when you say, look, people are injured more often when building cars at tesla, people say, what the heck is going on? we have to point out, this data comes from a third party work safe group in california that monitors -- it's an independent agency, not a state agency, and part what has people concerned here as tesla ramps up production, you'll see more injuries in the future. however, keep in mind that some of those who advocated for turning toe this work safe organization to analyze data are workers trying to unionize this plant, so there are many who are looking at this data and taking it with a big grain of salt saying, well, is it truly up safe or just a case where workers trying to push for yun onization -- unionization this is a piece of ammunition to say, hey, come with us and unionize. >> i wonder if they -- >> we have to point out

ylan has the story. >> reporter: it was testy. this was mnuchin mnuch's first testifying.ost of the conversation was focused on financial regulation. it is also met he has to face senator warren. now, mnuchin said in the testimony that he does not support a return to glass-steagall saying that that would cause significant problems for financial markets, the economy, and liquidity. but on the campaign trail, president trump said he supportings a 21st century version of glass-steagall. today, senator warren tried to press him on exactly what that means. >> to get it straight, you're saying that you are in favor of glass-steagall, breaking apart of the two arms of breaking -- >> i said -- >> regular banking and commercial banking, except you don't want to break apart the two parts of banking. this is something straight out of george orwell. you are saying simultaneously you're in favor of breaking up the banks. this is what glass-steagall is. >> i never said we're in favor of breaking up the banks and separating. if we had -- >> okay. let me -- >> i spoke to warren and the se

. >> ylan, thank you for starting the hour with the story of the day.are seeing a lot of volatility in media stocks this morning. viacom sales fell, operating profit down 60% year on year. julia is tracking action on a day where the early price action, julia, was stunning. >> that's right, carl. concerns about advertising and cord cutting have been weighing on media stocks. time warner earnings sparking concerns. they reported a 2% drop in advertising revenue, the weakest in years, raising red flags for the rest of the media industry that ad pricing and growth may not be enough to offset ratings declines. viacom reported a 1% decline in ad revenue. the ceo acknowledged softness in subscriber numbers. he addressed the threat of sku y skinny bundles. saying some of the most popular channels are included in the most expensive tier. as they posted a study saying they posted third wofrrst first quarter ever. if you account for additions from skinny bundles, the pay tv business still lost half a million subscribers. >> it's not that these customers are going

ylan mui joinsto peek e. the bir the pass-through rate on small businesses. right now it's literally zero. that's good for a third generation manufacturing business that makes food proc s processing equipment. they've been able to reinvest 8 $18 million back into new technology and new jobs. kansas governor sam brownback said there is a lesson there for the white house. >> i'm hopeful going forward people like president trump, that are looking at this, i hope they'll do it, the small business tax cuts, that's a key place to get growth. i think it needs to be -- it needs to be tightened in on the target. >> that flip side is that it's really expensive. the state is facing a 1$1.4 billion budget shortfall over the next two years. the impact on schools is turning a local entrepreneur against these tax cuts, even though they benefit his business. >> we've shifted too far towards cuts and not enough in investment in the future. it's my hope we right that ship. >> now the movement to repeal these tax cuts is growing. so what happens here in kansas could drive the d

back to you. >> ylan mui, still early.y the president of the aspen institute, former "time" editor and chairman walter isaacson. we know the budgets are doa on arrival, and this one comes with the added wrinkle, criticism for cutting safety nets that ostensibly aid a lot of trump's base, on the other end from others from the peterson institute who says it doesn't aggressively enough attack entitlements. where are you? >> it surprises moo he that the with the has done a budget that's very much sort of corporate big business, big tax cuts for wealthy, as opposed to doing the more populist approach that he campaigned on and i thought he was going to do. i mean, for me, the problematic thing is, not only cutting some of the medicaid entitlements, but student loans, and health, c.h.i.p. program, the national science foundation, national cancer institutes, national institutes of health, these are all the investments you make in the future, making sure our kids get an education, they have good health, and if you look at every gre

. >> ylan, what is the feltfeelin the ground from the other various bankers and finance ministers inerms of slipping domestic agenda in the u.s.? steve mnuchin coming in sounding confide confident. some of them fearful of what the political developments, whether it's comey related or just simply healthcare bill related type factors that the economic policies, be it tax reform or anything else won't actually be achieved? >> there's a waiting game going on here. everyone is waiting to see what will happen in the u.s. because that will help determine what the ripple effects are for other economies. so with regards to tax reform, that's a big issue. the border adjustment tax is another one. a treasury official told me while we were in italy that the administration does not believe that border adjustment tax works in its current form. that's a strong statement from the treasury department that i don't believe that we've heard before, and that should be the one sign of relief for our counterparts over in europe. >> in terms of some of the european leaders, a sense of not so much confidence

ylan mui has more. >> reporter: house speaker, paul ryan, said this morning he wants to hear from comey himself. he also is backing an effort by representative jason chaffetz to get any and all documents related to that conversation between comey and president trump. >> we are not going to be trying to play to the crowd or try to meet timelines. we are going to do it the right way and follow the facts wherever they may lead. >> ryan was measured in his tone during that press conference. when he was asked off camera if he still has full confidence in the president, he said, i do. the fallout here on capitol hill is just beginning. virginia representative, barbara come sta comstock, says she thinks lawmakers should have a classified briefing on what happened. they think comey should testify publicly and senator john mccain is comparing the scandal to watergate in its size and scale. he is just waiting for another shoe to drop. democratic congressman, al green, is expected to call for the impeachment of the president on the house floor. >> a lot to follow out of capitol hill. >>> a jittery

ylan, thank you very much for that. >>> the dow now in a holding pattern, down about 90 points. some of the headlines out of the intelligence committee hearing, according to andrew mccabe, comey has the faith of the rank and fail at the bureau. they have adequate resources to conduct the investigation, that it is not standard practice to notify anyone, answering susan collins, that you're not the target of an investigation and they do consider the probe to be highly significant. >> he also confirmed that he has been to the white house this week, said he did not discuss this russia investigation. he did start answering. >> the hearing continues. let's get to wapner and the half. >>> welcome to "the halftime report." our top trade this hour, retail reality check. why so many stocks are getting smashed today and what it means for a sector that seemed to be on the rebound. with us for the hour today, joe, pete. we begin with macy's and several other big-name stocks that are absolutely getting hammered today. raises questions about whether gains in the space over the past month. the

. >> ylan, thank you very much. we'll see you soon. steven mnuchin sitting down with our own john harwood. admitting we will not get 3% economic growth this year or next. but it will phase in over time. also stating tax reform will not happen by august. here now to talk about this and the budget jared bernstein and jimmy with the american enterprise institute. i would imagine you think this budget is doa in congress. >> i do think it's doa. we've heard republicans say that. i fear there are components of the budget that are not all that different from budgets we've seen from, say, paul ryan, writing budgets when they didn't have the majority in congress. so i'm still concerned about some of the deep cuts. i'm also -- and i want to be very clear about this -- the accounting in this budget is really just crazier than i've ever seen and probably than jimmy or either folks on the other side have seen elsewhere. they do not count the cost of lost revenues in this budget yet they count these alleged growth effects from them. >> what lost rev

a point in that we're not talking about tax reform anymore, that tweet you showed me your reporter ylan mui showed me tax cuts not the tax reform in that tweet and he has them in capital letters. i think that's a lot more realistic because i don't think there's going to be anything like the reform that maybe cuts revenues by $5 trillion over ten years. it's going to have to meet the budget rules. what's remarkable about this, on health care not only is it sucking up oxygen but frankly i don't think republicans think that much on health care besides repeal. that's not their brand but tax cutting is and the fact that they've been so dysfunctional on moving this thing arguing about the border tax adjustment for nine months which nobody -- a lot of people never liked in the first place. >>> i apologize to richard reuben. good for you. bad for me. as i said i'm not near as pessimist as jerrod is. i think trump is right. get rid of the filibuster. just get rid of it. mostly did harm not good. we all know what we're talking about. never in the constitution. the democrats used the nuclear optio

we are in washington with more on that part of the story, ylan. >> republicans have no time to rest on. the senate majority leader mitch mcconnell convened a working group on health care, and a spokesman says they'll provide regular updates and hope to move expeditiously. now, some of the outstanding issues, worries that the medicaid expansion that so many states took advantage of, that it ends too abruptly. there's also kern that the age-based tax credits to help people buy insurance are not generous enough. a republican of tennessee is chairman of the senate health committee said point-blank that the senate will be passing a version of the bill that the upper chamber will take the time to get it right. now, the senate won't even consider a bill until there is a cbo score it has to pass with 51 votes and no democratic support, it cannot add to the deficit. one analysis says the price swing either way depending how many people enroll in the system. they are in session until memorial day. ide ideally, they want a vote before th then, but there are no guarantees. >> i have a question qui

. >>> g-7 finance ministers and central bank governors are more and our ylan mui is there. >> i askeded to defend the administration's america first trade policy to his counterparts overseas. >> we're excited about the u.s. trade policies. i think you probably saw last night we made an announcement of a hundred day economic plan with the chinese. i think we're very happy. >> so he spoke about that agreement between the united states and china to try to increase market access particularly for agricultural products and financial services. trade is not officially part of the agenda here in barr, but the issue is likely to come up with the one-on-one meetings that they're having with one another. secretary mnuchin is expected to meet with germany's minister and i spoke with schauble this morning about what his message might be. >> we need a strong united states, united states to lead the global economy and global politics on a sustainable way. the united states is still to most -- still the most important political and economic power. and the best alliance for europe. >> we are expecting

thank you ylan mui in washington today. >>> up next, where momentum is mick i picking up after a veryter a very slow 2016. stay with us. picking up after a very slow 2016. stay with u welcome back. here's a look at these movers after hours. 21st century fox down around 4% right now. still awaiting details if any are to come. beauty is down 4%. it's moderated its decline. whole foods is down the biggy snap is down 24, let's round ut to 25%, just above $20. now speaking of ipos, the market is kind of heating up, there were reports surfacing that the fast casual chain is looking to go, i was there today had a chicken avocado salad. >> it's an urban grab-and-go type of thing. they were mentioning people eating multiple breakfasts. people popping in, a lot of runway, up against panera at some point. axa have to rationize the business and create capital. >> i'm pretty excited about manger. >> everybody knows the bitcoins have been surging, the coin offerings are getting more and more attention smr it's almost like a kick-starter, using bitcoin and when you contribute the bitcoin, that also

thank you, ylan. keep us updated on that. get to fed minutes released about an hour ago.teve liesman is at federal reserve building in washington with those numbers. how did they look, steve? >> pretty interesting, bill. minutes of the meeting affirming market expectations for a june rate hike, with most at the meeting saying a rate hike would "soon be appropriate" if the economy rebounds as expected. now, there were some concerns and officials at the meeting said they wanted evidence that the economy was indeed bouncing back from a weak first quarter before they hiked again. the economy grew less than a percent in the first quarter but it is expected to rebound with a 3% number or so this quarter. there also was some concern about recent soft inflation readings and deep uncertainty over timing of any fiscal stimulus from the white house and congress. in fact, suggested a number of participants as the committee took a general swipe at washington with saying clarification of prospective fiscal and ot policy changes would remove one source of uncertainty for the economic ou

cnbc's ylan mui is in washington with more. >> reporter: bill, the big question on tax reform is whentimeline was pushed back. first it was august, then 2017. today treasury secretary mnuchen appeared to soften the deadline more. >> i originally said i was hopeful we would get tax reform done before the august recess. at the time i said it was aggressive. i guess you would say it is even more aggressive now. i have decided i'm not going to give any other specific dates other than saying we would like to do this as soon as possible. >> reporter: republicans on the ways and means committee held a retreat over the weekend to discuss the way forward. the message from a key congressman, pete roskam, was tax reform needs to be permanent, and that means they need to pay for it but the price tag might be higher than anyone thought. goldman sachs came out with a new analysis showing cutting the rate for pass-through businesses alone, lowing to 15% would cost two trillion dollars. it comes from a straight rate reduction and the other comes from corporations and wealthy individuals converting to

joining us with some of the major details, ylan you had a little bit of time until 3:00, 4:00 in thenching the numbers and looking at the data and going over it. we keep saying this $3.6 trillion of spending cuts over ten years. i would point out it's 7% of total expenditures. is that a big number? small number? >> the administration is saying that this is the biggest level of reductions that any administration has ever proposed, but the key thing here is that they're saying that that $3.6 trillion in cuts over a decade will help them balance the budget by 2027. so that is one key part that they are highlighting, that estimation also includes the forecast that there will be an additional $1 trillion to $2 trillion in revenue from tax cuts, so they're betting that they'll be able to generate enough growth through tax cuts to help them relieve that deficit, and that they'll also be able to get there by cutting spending as well. but as you know, as you guys have been talking about all morning, that forecast for 3% might be a little bit of a magic. >> before we do that talk about this is