I need a hero welcome to power lunch. Im Morgan Brennan the stocks are holding steady. We have a mixed session. Two more trading days to go in september, the dow and s p 500 are on pate for an eighth straight quarterly gain. Mcdonalds giving the biggest boost to the dow today the transports hitting another error intraday high well drill down on some of the big movers roku, stock of the day, this is up 50 on its ipo debut. Also keep an eye on mccormaiccck we begin with washington, President Trump unveiling the longawaed tax pla promising tax cuts today House Speaker paul ryan and the top economic adviser came to squawk box to push the plan ylan mui joins us with the latest. Reporter it will have to go through the sausage grinder before it can be legislation, gary cohn was very clear on cnbc the 20 corporate rate is nonnegotiable. Speaker ryan was equally clear that the house is committed to hitting that number. Look, when we polled the border adjustment from our build back in the middle of the summer, we spent the next three months rewriting the whole thing, reworking the numbers and making sure we could get to 20 , which we can, and were very excited about that we have to stick the landing on that and were just as committed as the white house is on holding through on that. We would have liked to have started lower to give ourselves negotiating room we are at 20 20 is a bright line test for us. The president has said it, he said it yesterday, and hes been clear about it we are not going over 20 20 is the top of what were willing to go on the Corporate Tax rate. Reporter at his Weekly Press Conference speaker ryan did acknowledge there are already some things that lawmakers have had to give up one of those is the push to lower the Capital Gains rate its one of the casualties in the Health Care Law not getting passed as some of you probably know how the numbers work, not getting the Health Care Bill passed baked into the basine that 3. 8 tax thats like 170 billion its all about fiscal space. The next step is getting a budget passed. I asked speaker ryan whether he believes a tax package shooter deficit neutral. He said yes, but when i asked how he plans to do that, he just said, youll see back over to you. Thank you, ylan now to john. Its going to be very difficult for republicans to get this through we skew on health care how difficult that was lets just run through them. A tax base odd fairness, republicans have a lot of details outstanding in this plan but when the start with the bottom rate 10 to 12 and the top rate coming down, those are big fat targets for democrats to go after. Second, credibility. The administration is now saying the wealthy do not get a tax increase that is not clear on the face of it and certainly from the elimination of the estate tax, that only goes to the wealthy. Theyll have some of the same problems they had when they promised better care and in fact were taking caraway from significant numbers of people. Third is smaller benefits, bigger costs when weve had previous tax cuts, Ronald Reagan in 2001, the economy has less of a growth boost, and when you had the george w. Bush tax cuts in 2001, now the the economy was in surplus. Now its in deficit. You have party discord only 52 members in that republican caucus, and they do not venity within the caucus remember, steve bannon, who was insi the white house, was advocating a 44 rate for top earners. Hes outside pledging a fight with the republican establishment. You can bet that will come up. Finally the obstacle is time theyre way behind schedule. They hoped to have this done by the august recess. Thats not happening with all the decisions left to be made, this will stretch well into 2018 and run into the 2018 elections. John, thank you very much so the framework has laid out the battle lines have been drawn. You just heard john talk about some of the obstacles that could making getting a deal done tough. Eric cantor, former House Majority leader, now vice chairman of mull is company. What would you say the odds are . Odds are pretty good. Better than 50 . Yes, for sure given where washington has been over the last eight, nine months, the imperative here is things have to get done. I was opt mickic on health care and said it was going to get done obviously we have seen even the latest in the past week whats happened there, but you know, john laid out aft difficult hurdles that exist listen, theres a reason why there hasnt been overall major tax reform since the 1980s thats what were facing here what i dont understandbels about the plan youre trying to sell it to the american public. Taxes are incredibly complex and difficult to understand. Yet in this plain they raise the lowest end and say dont worry were going to double the standard deduction most people dont understand how that works thats red meat to the critics would you have done that the impact de facto is yes, there will be a zero Percentage Rate because of the doubling of the standard deductions. But listen, tax cuts are religion for the republican party. This is something that republicans can rally around this will be a significant tax cut for working middleclass americans, and it would put us, in terms of a competitive posture for the country in a much better way that we can actually see growth return to our economy. Because it is so intertwined with the gop and how people identify with the gop, speaker ryan was so confident thorn when he appeared on squawk box, that this would get down and done by the end of the year. I asked him that question, he said yes otherwise we wont get the 3 next were. Would you go so far to say that . The big win yesterday was the buyin of the members of the house conference, and specifically those in the Freedom Caucus who said, you know what . Well accept this, and as a signal that theyre going to support the budget that is really whats been uncertain. As we no, that passage of house and Senate Budget is critical it sets up the framework for lowering the voting threshold under the reconciliation process. That assumes that every single republican will vote for it. Well, youve got to, in the budget it will be a 51vote threshold, obviously a simple majority in the house. Theyll get that done. Now, the difficulty lies in getting the actual tax package passed that will be down the road theres a lot of people interested, vested interest in the existing tax coats, as topped said earlier, this is where the sausage begins to be made. Speaker ryan says the elimination of that deduction has to be there to make the numbers work, but it also seems like it could be political suicide. All of this is up for negotiations i think the tough line being taken by the white house, paul and others on the hill needs to be taking, but as we know, this is an ugly process there are going to have tore giveandtakes, because this board adjustal tax was thrown out, there needs to be significant pay forwards, the deduction of sales and local taxes is a big one, and how that offsets with the doubling of the standard deduction will be critical in these blue states where are taxes are higher. I was trying to find an elegant way to ask the question, so i will ask it the way it was in my head is there any way to look as it, as i call it, the blue state payback . Anything other than a giant onefinger salute for the states that voted for clinton. Consistent with the representation by the president , it will specifically hit people like you, brian. It will. And you too, melissa, dont smirk at me. It will not hit middle class in the blue states theyll be taken care of in this removal of the doubling of the standard deduction. How do you make the passnew numbers work a lot of people dont realize that 95 are working with this passthrough, and when youre talking about benefits to the middle class, the passthrough is the biggest, but then you have these reports that folks on wall street stand to benefit the most, so what is the compromise there . All of this, again this is where the real grinding will take place, as you rightfully suggest, 95 of businesses are taxed at the personal level, the individual level what will deficient business income from person income. Wall be a solution theyll have to put in guardrails to make sure there isnt abuse in the system. This is the same argument thatsing going around the carriedinterest question. What is business ince . What is necessarily ordinary, not capital income in the context of carried interest . The same way, congress will have to work out which industries may be exempt from that, which industries are going to be taxed at the higher level, and which can come down to the 25 . But the gop has majority control in the house, the senate and white house. Who exactly is the gop negotiating with listen, there are again, going back to the statement, tax reform has not occurred for 30plus years, because its so complicated. There will be negotiations based on where members come from, whos in their districts, which employers are there, how it impacts people at home thats how our system works. People win and loose at home, not in washington. Eric, a pleasure. Thank you very much. Good to see you again. Nice to see you go hokies. Thank you a big game saturday. A news alert sevenyear notes are up for auction. Rick santelli is tracking the action how is demand . Well, everybody should do their happy auction dan, yeah, its happy dance we have give an a for demand its been a long time since weve seen such a called auction. Went through the dutch auction process with a yield of 2. 13, well below the 2. 142 when issued and it w high price, even ice, outside the range, but it doesnt end there. 2. 70 bid to cover the third best bid to cover in 3 1 2 years. 70. 6, takes out that 69 ten auction average. Directs at 19 , the secondbest level in three years, and dealers ohm primarily dealers only take about 10. 4 , a nice aauction. I know yields have moved up a bit. Well have to continue to monitor. Does this mean rates will stop going up i dont think so, but its certainty nice to see investors find a level that finally interests them on the current. Were going to go back to melissa lee now. Coming up, case dismissed. The s. E. C. Losing the highprofile fraud case against lynn tilten. Her lawyer says shes been totally vindicated she joins us for an exclusive interview. Go pro unveiling the next big thing. Will this be enough to keep the trend going . The ceo joins us live, next. Power lunch is back in two most etfs only track a benchmark. Flexshares etfs are built around the Way Investors think. With objectives like building capital for the future, managing Portfolio Risk and liquidity and generating income. Thats real etf innovation. Flexshares. Built by investors, for investors. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. The dow transports a record high today, as airlines take to the sky led higher by American Airlines, hosting investors in texas. A live exclusive interview with Ceo Doug Parker coming up in the second hour of power, that recent hurricanesing, from upcoming earnings, though it is pairing dismissal days, airlines remain the worth performers, other winners feddics and ups. For the quarters truckers and truck brokers. As hurricanes recovery propels demand and most interestingly, as the freight insurance experiences its first true peak season since the recession weve seen huge demain near peak levels youre also seeing instrument activity this year, pickett upas well how many boxes of people. Hes a hero its amang thats majority hag gotten a lot harder go pro is off the lows of the day. Year to date, but can it continue its momentum. Youve just introduced nick, the new camera you all have this new custom designed processor called gp1. How does that impact performance . Well, gp1 is allows us to double the performance of the predecessor. We now have twice the frame rates, captures 4k 60. Its a lot of numbers. What that means is its a powerful camera that can pump out high frame rates we now have video stabilization thanks to gp1 so hero 6 is by many country miles the most capable and powerful gopro we have made. You said its going to cost 500. Yes, 499. It sounded like you were targeting that core gopro uses for a premium product, is that the strategy well, we still sell our lowerpriced products. Hero 5 black is still 400 but hero 6 black is just in another league this is a camera that professional accounts use to film and television it goes fast are their hero 6, and our consumers customers are looking for the best from gopro, and our sellthrough tends to skew towards our highest performance products, high zest price products we expect that to be similar for hero 6. Morgan mentioned your stock is up about 30 so far this your some skeptics say they see the market is shrinks, and you mentioned sellthrough down 9 year over year market saturation, tougher competition, why are they wrong, nick theyre wrong, because theyre comping against a year, 2016, where we unfortunately had to do drastic Price Reductions and sell off a lot of inventory to sell through the inventory that was in the channel. So those Price Reductions led to higher sellthrough volumes because of the lowerprice products, so 2016 is really not that realistic of a comp to really understand the health of gopros business were growing unit sales over what we did in 2016. So gopro is actually growing in the number, but obviously well off its highs, 98 in the fall of 2018 are you confident this is the product that will jumpstart shipments and get investors excited . Its part of our Growth Strategy definitely an exciting new product. Its a new meaningful price point, because we think a lot of our customers will op for hero 6 black, but dont forget we just introduced fusion which is our fichal 360degree camera that up people are excited about our software continues to improve, it works like an untethered lens foyour phone and all the footage moves to your phone now theyre using the gopro and their phone to share their lives in cool new ways. Thank you for joining us. Appreciate it. Thanks, josh, josh lipton and nick woodman from gopro. Puerto rico in desperate need of crucial supplies many are stuck in ships and barges outside the support were live on the ground there, next whoooo. Youre searching for something. Like the perfect deal. On the perfect hotel. So wouldnt it be perfect if. There was a single site. Where you could find the. Right hotel for you at the best price . There is. Because tripadvisor now compares. Prices from over 200 booking. Sites. To save you up to 30 . On the hotel you want. Trust this birds words. Tripadvisor. The latest reviews. The west prices. I cant wait for her to have that College Experience that i had. The classes, the friends, the independence. And since we planned for it, that student debt is the one experience, im glad shell miss when you have the right financial advisor, life can be brilliant. Ameriprise into President TrumpPresident Trump waiving jones act rules. The shipping companies are protesting this could make problems there worse Contessa Brewer is live in san juan with more contessa reporter so, brian, heres why. Already out at sea there are lines of ships, all of them loaded up with Cargo Containers, and 1,000 containers waiting to get into the terminals and be unloaded, but theres terminals Cargo Containers as far as the eye can see, some 10,000 indeed port of san juan now yesterday they were moving like 70, diaw they had move 111 Cargo Containers this whole operation is running on generator power, going through 4,000 gallons of fuel, not just for the port operations, and you can see some of the trucks coming down and bringing the containers off a ship theyre yield it to power this operation and term gnat operation and the generators on refrigerator trucks. Diesel is in such crucial supply, almost all of the island is running on generator power. So how are re coming to you . Were plugged into the car battery here to fuel our live shows, and rear reliant on getting a strong cell phone signal in order to send you the video feed in this particularpot, would event that more than 90 in the island is without cell service the arm corps of engineers is working on providing generators, and theres a lot of finger pointing saying the waiving the jones act temporarily is a reply cal ploy to get people talking about Something Else it would not improve the logistics on the scene here, gu guys. Ive heard to other sourceses you have other types of ship stuck, but waiving the jones act is a first step in the right direction. Whats being floated what are you hearing on the island in terms of how to remedy getting Truck Drivers to their trucks and go ahead the diesel into the trucks. Reporter that is the whole problem even the fema director said they couldnt land more you have to make do with what you have the backlog is being created because the drivers either cant be contacted by cell phones by their Trucking Companies they dont have the gas for their personal vehicles to get to work. When they do, they may not have gas in the semitrucks to come up and pick up the Cargo Containers, to say nothing december back inlid. Okay. You can see there this is a difficult fall as contesta laid out, hiked up to a car batly to get you a signal right now let us talk about a group of stocks that have been in the investing fast lane that would be the rv trucks thanks to Strong Demand motorized sales up 66 as millennial continue to get behind the wheel this comes as rv stocks are revving up hitting new highs today, and camping world hit a fresh alltime high yesterday. Manufacturers and dealers credit the industrys recent grow to younger buyers as the affordable rv provide ago mo economical way to travel theyre using them for tailgates or and on a programming note, bob martin will be on mad money tonight. Can i throw