Big focus of the administration, the things that we continue to fight for as we go through this tax policy. Maria we will go through latest stumbling block as they push forward for possible vote today beginning at 11 00 a. M. Stock surge initially in hope of deal yesterday, the dow closed 24,000 First Time Ever with better than 300point rally, look at what is happening right now. Same with s p 500. Nasdaq down almost 1 right now. In europe the major averages are lower across the board, similar upset here. Cac quarante in paris, down better than 1 , dax index down better than a half percent as europe takes a cue from wall street. Take a look, japan was up half a percent. Shanghai composite flat on the session. Hang seng and kospi were lower. A verdict shock outrage this morning after san San Franciscoy finds illegal immigrant that shot kate steinle not guilty of murder. He will now be deported for a sixth time. President trump taking to twitter to express anger at judgment. No wonder the people of our country are so angry with illegal immigration. Very latest of verdict ahead and its implications. Tarmac trouble. Newly released document shed new light on former bill clintons meeting with then attorney general Loretta Lynch. What they reveal about the highlycriticized encounter on the tarmac coming up. The details on the merger that could be worth between 200 and 205 a share. And jim alabama takes a shot at ai, new device that pours you a drink on command with a side of snark, all that coming up this morning and joining me to talk about fox business dagen mcdowell, Kelly Company kevin kelly and the Kings College economics professor brian brendberg. Great to see you. Kevin all i need is to get a side of snark and jim beam. [laughter] kevin thanks a lot jct. Maria markets reacted too quickly. Last night the stumbling block about was it bob corker basically saying, look, this is not going to happen if the trigger is not there. Dagen or bob corker coming up with the idea that you will build tax increases into the bill that can we just raise the question of what personal does it play in terms of senator corker and his opposition to the bill because this is a republican standing up for tax increases in a bill thats aimed at cutting taxes. So, again, the world has turned upside down. I hammered senator marco rubio yesterday, that amendment could get voted on today to not only increase the Child Tax Credit to 2,000 but refundable against someones payroll tax liability, thats welfare you can argue with me all day long on twitter about that but thats welfare through the tax cuts. Maria i want to drill down on each of these. The senate tried to get it done. Coming up to joining the conversation this morning we have a House Majority leader and california congressman Kevin Mccarthy coming up this morning. Republican congressman and House Freedom caucus member dave brat, democratic congressman john and reality tv star Bethany Frankel. Tax reform hanging in the balance. Senate republicans are race to go secure votes to pass bill with votes set at 11 00 a. M. , with hours to go, gop leaders were still making major changes to bill and hope to go win hawks tennessee bob corker, trigger to raise taxes, raise taxes if Economic Growth does not materialize, if the revenue that they promised is not there. That was scrapped. Another raising the Corporate Tax rate from 20 remains on the table. Lets get into this, brian brendberg, your thoughts . I cant believe we are at this point and the thing thats holding us back from tax reform is that the tax cut isnt going to fully pay for itself. Nobody really thought that a tax cut is going to fully pay for itself, thats not the point of a tax cut. The point of a tax cut is to cut tax revenue. If you want to pay for it, cut spending somewhere else. Yesterday it looked like we get something through and today they are reacting negatively, why in the world are we not passing a tax reform simply because it doesnt pay for itself, it doesnt make any sense. Kevin the most important thing to take away from this, its to funny they are talking about growth when we have a 3. 3 gdp number, actual growth exceeded the expectations that could actually happen. Thats the First Time Since 2007. With Congress Actually read the wall street journal or watched the show, they know that the growth will be there and when you and why do we get 3. 3 , because this administration is focused on growing the economic pie as opposed to slicing it into smaller pieces and this is what happened when deregulation happened. Can you imagine the kind of growth that we get if we get tax cuts, jct is even wrong about this dagen tell people what jct joint committee on taxation. Kevin score it is tax bill. They were already wrong this year by 8 tenths of a percent. Maria no one believes in the scoring anyway. Kevin they are always wrong. Dagen what happened with the joint committee taxation, they came up with score and it say that is this bill only raises revenue by 458 billion. The foundation put the revenue estimate at a trillion dollars or more than that so the net cost of this bill according to jct is 1 trillion over a decade. So the socalled selfproclaimed deficit hawks corker, flake and johnson now because they cant put a trigger into raise tax ifs the revenue estimates dont come in because the Senate Parliamentarian say its nay on that, they think about building in tax increases in later years. This is why it doesnt work if you want to cut Corporate Tax cuts, business in earlier years can deduct the cost of investments against 20 rate but then any income or profits that those investments generate in later years will be taxed at higher rate. Its the reverse of the kind of incentive that you want to put into place. Maria a whole cascading effect because of that and the worry about the scoring and the trillion dollar cost and think step back about 20 Corporate Tax rate immediately which was basically the crux of this bill. That was the whole crown jewel, 20 corporate. So now we are even rethinking that. Dagen right, that started a couple of days ago because it was marco rubio and his sidekick, partner in crime that proposed the 22 to give to a bigger refundable tax Child Tax Credit to people. Maria also ron johnson was thinking, passthrough 25, corporate 20, maybe 22 for both. I just think its crazy to me that republicans are say if we dont get growth, the way that we are going to deal with that is to raise taxes in later years, how in the world are you going to fight a growth problem in later years but raising taxes, youre making the problem worse by putting triggers in, by stepping up the Corporate Tax. Maria we questioned the trigger from the getgo, why come up to tax cut plan only by raising taxes. I dont believe you in terms of the revenue expectation. Kevin they might as well do nothing. The fundamental problem we have right now is cheaper for Foreign Companies to invest in the United States than companies in the United States to invest here. If theres an average of 22. 5 corporate tack rate across the globe, you know, its cheaper for those companies to come over here and invest because they are not being taxed at high 38 in the passthrough, im sorry, the passthrough needs to get done. Small businesses need this badly. They are being decimated by obamacare mandates. Maria they will go from 40 to 20 or 25 . Kevin yes. Maria thats going to be a big deal. We want to get to tweet, other breaking news this morning. President trump is tweeting about it. Here is what hes saying this morning, the Kate Steinle Killer came back and back over the weekly protected obama border always committing crimes, being violent yet this information was not used in court. His exoneration is a complete trafty of justice, build the wall. We are going to talk more about this kate steinle murderer verdict here, he was acquitted last night. We will talk about that coming up and what the implications are for the border wall. More on that verdict outrage and major implications coming up. Cbs reportedly close to acquire aetna for 66 billion, what that means for your familys medical bills, back in a moment. Maria welcome back, a stunning verdict last night in the kate steinle murder trial sending shock waves across the country, Lauren Simonetti with the details this morning and headlines, lauren, good morning to you. Lauren a jury finding yesterday an undocumented mexican immigrant not guilty in the killing of kate steinle on a San Francisco pier back in 2015, jose zarate acquitted of first and seconddegree murder as well as involuntary manslaughter. The jury had deliberated for six days. This really is about the family and shown incredible resolve during the whole process and our hearts go out to them. Lauren yeah, well, the shooting touched a fierce immigration debate during president ial campaign and the debate continued then candidate trump had used the tragedy to push for a wall on the Mexican Border and late yesterday, the president tweeted the verdict is disgraceful. Early this morning he added to that, the Kate Steinle Killer came back and back over the weekly protected obama border always committing crimes and this info was not used in court. His exoneration is a complete travesty of justice, build the wall and, of course, the trial took place in San Francisco sanctuary city. Meanwhile sources telling fox news that the department of justice is considering federal judges. Well, explosive new revelations about the secret tarmac meeting between then attorney general Loretta Lynch and former president bill clinton while his wife was under investigation, Judicial Watch releasing 29 new pages of fbi documents overnight. Reveal feds were more concerned about news of that meeting leaking to the public rather than the actual meeting. The documents also show that then fbi director jim comey seem today learn of the meeting from news reports. Well, that controversial 2015 meeting took places just days before comey publicly cleared hillary over private email server. The wall street journal reporting that cvs closing in on a deal to buying aetna for more than 66 billion in cash and stock, potential merger giant of selling everything from drugs and health insurance. People familiar with the deal say it would likely be valued between 200 and 205 for each aetna share. The merger could be announced as early as monday. Lets take a look at how both stocks are performing this year, you can see two different stories. Aetna up nearly 45 , cvs health down 4 and a half percent. All right, we could really feel the Christmas Spirit in the nations capitol last night, take a look at this, First Lady Melania Trump flipping the switch on white house tree lighting, ready with the countdown and wished america as well as the world a merry christmas. Maria all right, lauren, thank you. That is always beautiful every year at the white house. We want to get this. Dagen i love Christmas Music in stores, play it all day long. Puts me in the spirit. Maria on the radio too. I love Christmas Music. Dagen im not a sour puss all the time. Kevin thats the best one. Maria okay. So President Trump just tweeted again on the kate steinle case, the jury was not told the killer of kate was a 7time felon, the schumerpelosi democrats are so weak on crime that they will pay a big price in the 2018 and 2020 elections. The president mad as kate steinle verdict. Another milestone, dow 24,000, 21, 22, 23, 24 all this year. The trump bump this year. 2017 has been big with investors. 32 on the dow just in selection night. S p up 24 . We will take a break. John kenna slammed the prowrestler and actor being sued by ford motor for selling ford gte super car, he sold it and we will tell you why hes in hot water. Back in a moment. Think your Large Cap Equity Fund has exposure to Energy Infrastructure mlps . Think again. Its time to shake up your lineup. The alerian mlp etf can diversify your equity portfolio and add potential income. Bring amlp into the game. Before investing, consider the Funds Investment objectives, risks, charges, and expenses. 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Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. Maria 24,000 and climbing still. Still counting, the Dow Jones Industrial average closing above another historic mark yesterday. First time ever above dow 24,000, s p 500 and nasdaq also with record highs, joining us to talk about david nicklaus, good to have you on the program, thank you so much for joining us. Maria, thanks so much for having me. Yeah, i will tell you im as excited as investors are for amazing year that we have seen for the market in 2017. Look, as great as 2017 is at our firm we have a participate but protect mind set. Its more about managing risks to an investment portfolio than solely focusing on returns. Its been a fantastic year but its not about what we make in any one year its about what we keep over time and i think for 2017 volatility really the lack of volatility has been the story here. A lot has been the confidence that the Trump Administration has, i think, boosted to the u. S. Economy. So, you know, the question, maria, that many viewers might be asking, how long can that rally really last in the market. Maria right, so what do you think . You know, i think it can. How refreshing is it to have a president that believes in u. S. Economy that doesnt buy the narrative that the u. S. Economy is limited to a 2 gdp growth over the next ten years. Maria thats true. It can rally. Look, tax reform which we need to get done will be a stimulus, it will super charge the rally that we will see on the market. Kevin david, its kevin kelly, im glad that your last name is nicklaus. If theres a pullback that happened, this is a good time to put money to work because as you can see financials can do very well, tack reform will help them, the economy is getting stronger, even though the fed is raising rates that help net interest margin. Are you looking at certain sectors for clients to position themselves specially for santa claus rally . Absolutely, if you look at financials, trading at 14, discount of the market. I think financials will bode really well with tax reform but Interest Rate rises, we should see four rate rises, jpmorgan, goldman sachs, i also like the insurance play right now, you know, Insurance Companies have been squeezed in this lowrate environment and as rate rises you should see yields be positive all state, aflac. You want to look at tax reform play, you have to look at small caps, small caps in my opinion the biggest beneficiaries to tax reform. We are looking at clients, overweight financials and overweight small caps, that will be a very successful year for a portfolio if you want to look at those two sectors. David, i think the markets have fully baked in the idea of tax reform happening, i dont think theres any question for markets, theres a real scenario specially given what we saw last night that this does not happen this year and it does not happen next year, if thats the case, how much do markets react, is it a big reaction, does it change the trajectory for 2018 . Yeah, i will tell you, it is crazy to me that we are this late in the game and we are considering the tax form might not happen. Youre right, its a very real possibility and thats where we have to look at risks for portfolios, something that we look at all of the time. What is the risk, if you look at market rally since trump has been elected, market is up 20 , i hate to say this but if we dont get tax reform done, so i hope youre listening our wonderful elected official, if we dont get tax reform done u you know, we will definitely see a 10 correction no question. We could see even a 15 to 18 correction if tax reform fails. Its just because of the rise up that we have seen in the market since trump has been elected. Dagen david, lets introduce this, what if tax reform does happen but the senate goes in here is one possible outcome that they factor in tax hikes, a stair step up in the corporate rate in later years to come up with revenue, thats on the table and i want to point out the senate that it doesnt make any sense that a company would take a deduction against