Obamacare. Hear from the ceo of Molina Health care, one of the companies that could be at risk. The white house appears to take the lead on the push for tax reform now, but will a border adjustment tax be in the bill . Hear from the house ways and Means Committee chair, kevin brady, a key proponent of the tax. Thats a first on cnbc interview a little bit later in the program here. But we again with a trump administrations reported exploration of two controversial new taxes, eamon has the latest from the white house. Yeah, hi, kelly. This was a story broken by the Washington Post hours ago earlier this afternoonment i talked to the white house official. They are not disputing the Washington Post reporting here. Heres what we know from their reporting under consideration in the tax plan that is being worked on here at the white house. Two ideas. One is a value added tax. The other one is a carbon tax, value added tax is a tax in which you apply the taxation throughout the building process of a particular product as it goes to market. The carbon tax, obviously, has to do with pollution. The carbon tax, in particular, is not one thats likely to be extraordinarily popular among republicans up on capitol hill. They are aware of that here at the white house. They caution, though, that you shouldnt necessarily think that they have come to any final decisions about any of this. All different kinds of proposals are under consideration right now. Its very early in the process. They say here at the white house, but one of the things to look at if you look at the art of the deal implications of this trial balloon being floated this afternoon is whether or not this is designed to get the attention of conservatives up on capitol hill, maybe a little of a sfal here saying to conservatives, look, if you are not willing to work with us, well file find other votes on the hill to get the major initiatives pass in the trump white house. Could be a lesson here depending too much on the Freedom Caucus, considering they are willing for flexibility in the tax negotiations coming up later in the year, guys, back over to you. All about the intrigue moving the legal conclusion forward. Thank you. Kevin brady will talk about the controversial tax ideas in the next hour of the show. Now to comments made by jamie dimon as well as the letter released today. Wilfred has it all now. Will . Cited expectations of business friendly environments to come, including possible changes to regulation. Regulation is huge. I mentioned several there. We want to be a reason voice. Weve not. Doddfrank, versatile, absolutely not. We had a crisis. Legitimate complaints that should have been fixed, many had been fixed. You should recognize that, and some went too far. Adverse consequence. Regulation on mortgages for example as being most prohibited saying it cost the u. S. Half a percent of gdp per year or more than 300 billion per year in new loans not issued. He suggested a simple change would be for regulators to stop gold Plating International rules. He said, quote, if we used the same of National Standards of other international banks, that frees up capital. He suggest the other capitals of reform was not required, and he was asked about the meetings at the white house and whether he supports everything that President Trump said. Theres no one that we we agree with everything everyone says, and mr. Trump doesnt agree with everything we said. Overall, President Trump appointment ale willingness to engage. Guys . Yeah. Will, there was a litany of things, he said its Holding America back in the context of saying he absolutely believes in america. Its got a great future, but this is a longer and perhaps more, you know, its a little more down beat than seen in the previous letters. He said turn of the century, trillions in wars, student debt, leaving americans out of the workplace, Labor Participation is low, inner city schools failing, high schools in vogue too, and corporate taxes, regulation extensive but the bottom line, he says he thinks Growth Opportunities are the best. Right . Despite that long list, as you said, kelly, hes optimis c optimistic. In fact, he was reasked the question moments ago, and he turned it around and said, look, im doing an analysis of what needs to be done to Better Things from where they are, and its achievable too. I disagree with the overall tone, which i say was particularly upbeat, and as you said, regulations one of the key things he thinks would help and can change relatively simply competitive congressional laws and tax reform, smoke he spoke about, if we saw lower corporate tax, receive higher investment and higher wages coming through. All right. Thank you, will. I wonder if hes going to show up on cherry coke cans at some point. Everybody listens to him. Warren originally drank pepsi. There was a switch over, and now hes on cherry coke cans. Closing bell exchange, up 20 points now, a 100 point swing top to bottom for the dow today. Were at post nine, and who look who is back, Rick Santelli to the cme in chicago, and welcome back. Im going to start with you, rick. Im wondering what strikes you most of what you notice in the markets from the time you left to when you got back here. Yields lower, but other than that, what else is going on that caught your attention . You know, i continue to say that for those who want to invest and have the best strategy, i think the equities tell the best tale, and bob pasani spent on it quite a while. The amount of giveback in stocks in percentage terms is modest, yet, yield slipped back a little. 235 is nine points away from unchanged. 263 hit at the top of the range, and thats perfect technical analys analysis, what most look at. Keep it simple. 230 to 260, it took us base 1 months last year to take over that level. It happened at midnovember, and whats interesting, though, from november 4 to november 17th, 4th was a friday, session trading days, went from a 177 yield to a a 222 yield. If we slip back to 227, we can fill in some of that, but im in the frame of mind that stocks are there because not because donald trumpments it, but the other candidate did it. Theres another way to look at this. I dont know how it turns out, but nobodys adding more regulations, not raising taxes, and part of that is what the targets placed on, but that does not mean growth will grow any time soon. Thats the dynamic grappling, and the treasury market comes down a bit. Interesting. One of the things that was true earlier when the white house reportedly talked about a value added tax. And a carbon tax. Exactly. Sown like thats posturing here, but the one certainty is were going to deregulatory tax environment giving incementives thats not the case . Listen, i think thats absolutely the truth considering this major move in the markets since we have since the election has been all about the coming reforms, whatever it is, it was built upon that. After we went through the Health Care Debacle last week, now we talk about taxes, and throughing about value added tax, quarter tax, whatever you want to talk about it, it causes anxiety in the market, but the market is holding in. As rick said, were only 1. 5 off the highs. No reason to panic. What youre going to see as theres more discussion, youll see it start to affect how investors perceive market value at the moment. Are we basening it off what it looks like versus what we get versus what we expected to get. Oliver, you were a strong bull for a while and turned cautious here. Where are you right now . Are you buying stocks at these levels here . Yeah, we are. We continue to buy, invest, continue with the thesis its a bell curve of a market, and we dont see the trump rally ending in the immediate future. Look, First Quarter earnings come out. Those are going to be critical. Theres one who resigned today, netnet bullish for stocks. Theres an environment where the expectation and the fate is going to be able to pass Regulatory Reform and tax reform. All in basis with earnings expected to grow by 10 year over year, we think that the environment is still very well poised for well managed, you know, strong balancing companies. The s p price target, 57 points above that. Thats the bell curve. What do you mean bell curve . Just the way it looks this year . Exactly. First half of the year, a runup, then air comes out of the balloon, floating back down to where the market started, but it could rally again. Thats part of a normal cycle when youre eight and a half years into or over eight years into a bull market. Dont forget that. Comparisons are becoming easier in the sense that you had a very bad start to 2016 in the market, and so now the s ps up 14 year over year opposed to 24 there a couple months ago. The target on the tenyear is 3. 5 . Well below that right now, and although everyone expects fully the fed raises rates a couple more times this year. So we set targets in the beginning of the year so the vin esthers can see the targets. It should come down, if you do, thats a very positive thing because that signals a Strong Economy and accelerating growth. Thats what you want to see. Investors should scram. If you dont want to put on the price targets, you shouldnt have to. Especially if you dont feel strongly about it. Well, the clients right. Oh, no. Customer centric business. All right. Thank you, guys. Appreciate your time. On todays market anksz. Welcome back, rick. Thank you. We have 49 minutes left in the trading session with the dow up 21 points. A sideways day here so far. Coming up, chair of the ways and Means Committee giving his take on the poignant expiration of the value added tax and maybe a carbon tax. Up next, ceo of medicaid Molina Health care is here to give us his take on the new gop plan to replace health care or as much as we know about it at this point. Say hello to at ts best, unlimited data deal ever. Its a total gamechanger. So now the whole family can binge,. Surf, shop, navigate, listen, game, stream and more. All without the hassle of worrying about overages. Or running out of data. Its less than 40 per line per month with 4 lines. And remember, its at ts best, unlimited data deal ever. So get at t, get unlimited and get everyone more for less. Wont replace the full value of your totaled new car. The guy says you picked the wrong insurance plan. No, i picked the wrong insurance company. With Liberty Mutual new car replacement™, you wont have to worry about replacing your car because youll get the full value back including depreciation. And if you have more than one Liberty Mutual policy, you qualify for a multipolicy discount, saving you money on your car and home coverage. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. 20 stocks higher among the components, ten lower. Caterpillars among the leaders today with goldman sachsed adding the equipment maker stock to the buy list citing several factors including cast exposure to under invested machinery markets in the early stages of recovery. There it is. Up 2 right now. Health care stocks lower, though. John harwood has the latest now. Kelly, neither republican lawmakers nor Republican Voters were happy at all with the collapse of their Health Care Bill weeks ago. Theres animal effort within the administration and capitol hill to resume talks to revive the American Health care act, in particular, mike pence has been working with the Freedom Caucus with objections to the original bill on ideas that might move it more in their direction, which is for less regulation. One option is to allow states to opt out, and another allows them to ovpt out of community rating, but the News Conference today cautioned everyone this is just getting started. I wont get into the details of the thing other than to say this is all about getting to the stage. We dont have text or an agreement yet. Throw around concepts. Thats occurring now. But thats not to say were not ready to go. We want to ensure when we go we have the votes to pass the bill. The changes talked about would lead to lower premiums for some people but higher prep yums for older people, and also others who have preexisting conditions. In fact, it potentially negates the preexisting condition protection popular among republicans. Most likely you can interpret the talk as an effort to have something to tell voters when they go home for easter break that they have not given up yet. John, thank you. Joining us now, dr. Molina, ceo of Molina Health care, someone we go back to to sort of get your gauge of response to the negotiations as they continue. What are you hearing right now from congress, and are you encouraged or dismayed by what youre hearing. My father said if somethings worth doing, its worth doing right, and what concerns me is the rush to do a piecemeal repeal of the law without really considering the whole thing in total and getting a bipartisan view. When you say worth doing right, newer things on the table is allowing states to opt out of key provisions, essential benefits, community ratings, a lot of language here, but do you have a problem of states choosing how to proceed on health care . Well, what worries me is it allows Insurance Companies to charge much higher premiums for people with preexisting conditions issue and at the same time, by changing the essential health benefits, insurance policy Companies Offer packages at a lower price that appeals to younger people. The problem is, the people find out when they get sick, the Insurance Premium and the pack caption they purchased do not cover their sickness or the treatment needed or the medications. This is a rush to accomplish something when we really need a comprehensive bipartisan approach to health care reform. Well, i mean, lets face it, they do seem to be, for them, taking their time this time. I mean, there was a rush before. They set up the official deadline they wanted to have the thing done by the 7th anniversary of the passage of obamacare. That did not happen. Now it seems like theres a lot more casual conversations about how they are portraying it right now, and it really is becoming, as paul ryan said, a way to figure out how to get to 216 votes in the house. They do seem to be learning from their previous mistakes, but be that as it may, thats right, this is this movement to think about how to get votes rather than trying to provide health care, which is what this is all about. These cost shares reductions that we talk about last time. No talk about that yet. Do you think they get to that as a way to try to save on premiums as well . The cautionary reductions are crucial to preserve the market place in the short term. They need to fund the csrs for the next two years to buy congress the time to come up with some reform legislation. If they dont do that, the individual market collapses, and that would be terrible for the country. It would be terrible for people buying individual insurance, and it would be a black eye for the republicans. Doctor, one final question, so if repeal and replace is back on the table, the question for the business becomes what in term of medicaid is back on the table, and we dont know yet, but seems unlikely they leave the program as is with open ended grants, right . Now you guys have been through this roller coaster, but it sounds like you have to at least consider the possibility again that program may be tailored or widdled going forward. It is a responsibility. Its not been discussed. If i were the president , what id do is get senator hatch and senator wyden and i would get senator alexander and i would get them all together and say, build me a bipartisan solution to all this. Pass the csrs to buy us some time to do this thoughtfully, but thats what needs to be done. This piecemeal approach will end up with a health care disaster. All right. Doctor, good to talk to you. Thank you for the time again. Appreciate it. Thank you. Dr. Molina from Molina Health care. A news alert from ride sharing industry up in seattle there. Whats going on . Reporter hey, guys. Well, here in seattle, a federal judge temporarily block the citys first law that attempts to allow uber, lyft, and taxi drivers to unionize. It was passed in 2016 and scheduled to be in effect this week. It was the first of its kind in the country. Ubering r has been actively fighting it, and this month, they told heat wire app option was to leave the city entirely if passed. A federal judge temporarily blocked that law, and they could leave the city where they dont like regulation. Guys, back over to you. We have to mention, we checked uber, we have not heard back from them yet. Surprising turn this, especially for seattle and the company somewhat relieved. Thank you for now. For sure. As we mention, house ways and Means Committee kevin brady weighs in on the latest proposals. Up next, why kate spade is deep in the red today. Kevin, meet your father. Kevin Kevin Kevin KevinKevin Kevin KevinKevin Kevin Kevin trusted advice for life. Kevin, hows your mom . Life well planned. See what a Raymond JamesFinancial Advisor can do for you. Weve done well in life, with help from our advisor, we made it through many market swings. Sure we could travel, take it easy. But weve never been the type to just sit back. Not when weve got so much more to give when you have the right Financial Advisor, life can be brilliant. Ameriprise shares of kate spade tumbling, coach lower as well. Kate spade reportedly spending the next few weeks negotiating a possible sale of the company on the heels of an offer from coach. We asked about akwaring companies in late january.