Million dollar tax threshold. Votes arent there yet. Thats why we are following this live through the whole thing this evening. And as the president s new antigun Violence Task force starts work, we learn that now outside experts have yet joined that panel. Meanwhile, the debate on gun control rages across the country. Tonight we will hear from outspoken tv host piers morgan and former new york mayor rudolph giuliani. The kudlow report begins right now. First up, the latest on the vote of plan b. The plan b bill sponsored by john boehner that may decide how deep into january they have to go for a solution. May decide the fate of the economy and the stock market and decide the fate of jaohn boehne and ultimate lif the second term agenda of president obama. John harwood joins us now live with all the details. Good evening, john. Reporter good evening, larry. You know, the house has now passed on a party line vote, zero democrats in favor, about 20 republicans defecting the spending cut portion of John Boehners plan b. It would cut about 200 billion in spending, overt the automatic sequester cuts to defense programs that republicans have been opposed to. Now, the debate bef bthe passage of that spending cut bill, and we still have yet to see the passage of the tax increase bill, which is gotten resistance from conservatives, that was an opportunity for both parties to frame the stakes, and eric cantor, the House Majority leader, came on the floor and said, this puts the ball squarely in president obamas court. We House Republicans are taking concrete actions to avoid the fiscal cliff. Absent a balanced offer from the president , this is our nations best option, and Senate Democrats should take up both of these measures immediately. Of course, democrats have no intention of doing that. They have an entirely different krun construction on whats happened with plan b since negotiations blews a few daysation. On the budget committee, came out saying it was a waste of time with the clock ticking. We are engaged here in the house on this floor today in what has become a ridiculous political stunt which will actually take us much closer as a country to going over the fiscal cliff. The questions going to be, larry, of course, can negotiations resume after this happens . Senate says they wont even take this up, the plan b, if it passes, as house leaders say it will tonight. The question is, what are we going to have private negotiations between the speaker and president over the weekend . Will members come back and have something to pass or in fact go over the cliff and everyone see the consequences. Democrats counting on their hand only getting stronger over time. Added seats in the house and in the senate and believe that the business community, if they see markets going cadrazy, puts mor pressure on the republicans. Pretty unpredictable now. Can i ask you a couple of questions to clarify . Sure. You mentioned a procedural vote. Republicans lost 20 of their own. Is that true and what was that procedural vote all about and is it apock kraful of the vote . Lost 20 members. I think 21 was the final member. On the spending cut portion of the bill. Remember, larry, the spending cut bill didnt exist in the original plan b. That only was going to be a tax increase bill on Million Dollar incomes. John boehner added that because there was so much conservative resistance to the tax increases, that he had to have a sweetener for some of the conservatives. Now thats passed. Well see if he can hold his members and whether democrats come over and vote on this bill to raise taxes to the Million Dollar they can still pat the overall measure . Lose 20 and win they can. How they passed given the number of people not voting, yes. Thats how they passed the spending cut bill. Great. John harwood, thank you. Well see plenty of john as the evening goes on. Our special guest, Illinois Republican congressman aaron shock. 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. Im 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 ones taxes going up . Would i love low marginal rates to spur growth . The best prescription . Absolute absolutely. We have a president who just got reelected saying it is his mission to raise taxes on Small Businesses and individuals who make more than 250,000 and john boehner made the right play call saying were going to use Nancy Pelosis own words and Chuck Schumers only worpds againds a them and say were going to cover, because the president s not working in good face with us, 99 of americans in Small Business dont see taxes going up in january are you expecting nancy pelosi to get her joet she said make the threshold 1 million. Have you tried to whip her today . Absolutely. Its funny. People on shows like yours saying democrats say theyll never call this for the vote. Well, democrats six months ago said this was their plan. So lets ask Chuck Schumer why hes changed his mind on saving 99. 8 of americans . Let me add this to viewers. People arent cove erg the other good part of plan b. The estate tax, which i know millions of american, Small Businesses and family, family farms in my distributor worried about, would go back to 1 million on january 1. If plan b becomes law, we not only keep the 10 million exemption for couples and make it permanent, something that couldnt happen even under president bush, but we get it tied to, indexed for inflation, again, its something that sb not in current law. We also make the capitol hill gain rates permanent at 20 for all earners, even above a million. Thats huge. The estate tax, permanently at 35 . Correct. Then youll have the Capital Gains tax, 15 to 20 . What about the dividend tax, congressman . 15 to 20 or 15 to 44 . Well, if we dont do anything, as you know, it goes to 44 on january 1. Plan b preserves it at 20 for millionaires and above, 15 for those below a million. Small busine bus and individuals. And all of this youve described will be permanent . Is that correct . No more fiveyear, tenyear thats correct. All permanent. Thats where the trouble started anyway, 10, 12 years ago . Absolutely. One thing that is the cornerstone of republican policy on taxes is, give certainty. The one thing we hear from Small Businesses and Large Businesses is, just tell us what the rules are so were not laying awake around christmastime wondering whether or not if grandma passes away in january, are we going to lose half the farm or half the Small Business. This gives families certainty not just next year but really in perpetuity here in our country which that certainty is so key. Whats your guess . Last question, congressman, aaron schock from illinois. Whats your guess, your vote count right now . Well, i dont one thing they tell you as a whip, never reveal your vote count. Im confident we will be successful in the house in passing this proposal and my money is, when it gets closer to the new year, those senders, like Chuck Schumer and others, who promised their voters that they would try and protect filers below 1 million at the end of the day, acquiescing comes on the radio and tv, tell him id like to talk to him. The head whip, the main guy ross ki roskins . He and kevin mccarthy. Right. We appreciate it. Lets bring in our distinguished panel with us throughout the hour. They may be here for days. Well remain on the air until we get that final vote that mr. Schock talked about. Heres cnbc contributor keith boykin, former clinton would you do aide and having fun tonight watching the republicans, and we welcome back Heather Higgins, president and ceo of the independent womens voice. Heather higgins is this a good or bad bill, plan b . It is the best that boehner can do in an awful situation that hes in, and hes in an awful situation for a variety of reasons. Not least of which is poor messaging on the growth message. The average citizen just thinks this is about keeping tax rates low for rich people, and that republicans dont care about the middle class. They dont understand that tax increases are really bad for growth, and what this whole debate ought to be about in terms of entitlement reform and keeping taxes low is growing the economy, because thats how you actually get out of this pickle. I want keith to chime in on this message. Let me ask you this. Has john boehner and the rest of them, cantor, eric cantor, havent heard much of him throughout this whole thing. Paw ryan, paul ryan budget mfte out yesterday saying hes in favor of plan b. All of them together after the election whipping, is the Republican Party still looked at as the party of Economic Growth . The message you outlined with which i basically agree, that jack kemp sends a message, keep tax rates flat tax has the gop lost that message . They certainly dont articulate it to the extent we would like. They tend to leap right into the details and forget to frame the case, and you hear this all the time. If you listen to talk radio. Not the republican talk radio, but anywhere else, if theyre reporting on a news event, and its unfortunate, because, really, what the republicans are about is helping those 23 million americans who dont have a job get a job, and obama is spending more money taking it out of the private secretarier into more Government Spending is not the way to get us to 4 growth. Just capping deductions, gone from the private sector to the great point. Keith boykin, back to you. You heard what heather said, what congressman schock said. What does this vote mean to president obama . How do you see this . The plan b vote . Yes. I dont think it means much because its not going to become the law. I dont think anybody here thinks its going to become a law or anybody on the hill thinks it will become a law. Bakaly an exercise the republicans deciding they have to put up the show of looking like theyre serious. This may be the best of john boehner can get. I agree with you on that. At least for today. But come december 31st were going to have an issue here and somebodys got to blink, and this is not going to be the resolution to the problem. I dont know what this vote really means. Im going to come back to that political point. A very point one but i think we have congressman jim jordan, if im not mistaken from the great state of ohio. She the leader of the Republican House republican study committee, regarded as the conservative wing of the House Republicans. Jim jordan, welcome back, and. Good to be with you. We heard from a rather optimistic aaron schock, your colleague, that this things going to pass tonight. Do you agree . Well, well see. It doesnt pass until they have the vote. I know there are people with concerns. Im not voting for it. I think its not the direction to go. He said it best. If anyone thinks this bill will become law theyre not in reality. If this is not going to be taken up by harry reid and sent back to us in the same form, larry, why would we pass it . Why wouldnt we pass something we truly believe in, which is is not having taxes increased for any american so that we can have the kind of environment thats conducive to Economic Growth, so that moms and dads can afford to pay for their kids college, get the Job Opportunities they need, pay for their kids to go to private school, whatever. Why wouldnt we pass what we know were for and what our partys always stood for . If we know harry reid is not taking up the bill. Thats the part i dont get at all. Let me ask you this. Your a nay vote, as understand. Nay vote on tax cuts, lack of spending cuts or both . Three thing. Tax issue, underlying policy. Cut spending, everyone understanding that. And i fail to comprehend the strategy when were going to send a bill over there we know the white house said theyll veto. Harry reid doesnt know if hell take it ups if he does, its not going to be sent back in the same form. Theres already legislation over there we passed august 1st extending all tax rates. Last night, nick mulvaney, steve and myself went before the committee, took the bill to pass, the only one to pass in bipartisan support. Took it to the rule its committee. Offer this same thing. The only plan with bipartisan support, only plan that passed the house or senate. Send it again to harry reid and say take it up. You want to change its the process working, send it back well look at that issue. Would that let me understand. Would that bill extend all the tax rates . Yeah. Larry, we passed that bill august of 2012. In the summer. Took that same bill, put it in amendment form, went to the rules Committee Last night, askedal the rules committee to make an order to offer on the floor tonight on a planofvote on plan b, it was not made in order, even though every republican voted for it and 19 democrats voted for a and we know what were sending over there is not going to be sent back in the same form. Why not send what were for . Could have forced a vote in the senate. Possibly. Just as likely as whats were sending there now harry reid says hes not for. Thats the stra teae strategic dont get. From john harwood, spending cuts, 10 billion over ten years. Kweisi sequester, im not sure what it is. Came at the last minute to get votes from your conservative colleagues. Does it work . Well, remember, its not a we just passed that legislation just a couple minutes ago on the house floor. Its not attached to this bill. Thats going to go over there. That piece of peep will likely wind up in the trash can at harry reids office. What i figure. Its not attached to this legislation. Its good we tell the American People we think you should replace the defense cuts. Cut spending elsewhere. Makes sense constitutionally and is good for the country but not attached to this sledge slalegi lot on plan b going over there tonight. Many thanks. Outspoken. Appreciate your honesty. Former mayor Rudy Giuliani knows about gun laws and is about to speak with us about several topics straight ahead. Dont forget, free market capitalism, the best way to prosperity. Flat tax rates, getting rid of deducti deductions, 20 of gdp. Thats kudlowian. Well be right back. Nbc chief washington correspondent john harwood coming buy wack breack with bre the house of representatives got into an unscheduled recess before they were beginning debate and final passage voting on the tax increase bill that john boehner offered as plan b. That recess usually means that they lack the votes to pass the bill. Now, thats what democrats believe. Ive not heard back from representatives of the Republican Leadership as to whether thats the reason, but theres no really much other reason why members, why the house would say, were going to recess for a while, subject to the call of the chair, unless the leadership and the whip operation for the republican side was having trouble rounding up the votes. Remember, this is a vote to raise tax rates on Million Dollar incomes and you have a lot of republicans who are adamantly opposed to raising taxes on anybody. Im watching my blackberry. Well see what the members of the leadership and the leadership aides, how they respond and how quickly the house comes backs, but it looks as if the plan b tax increase bill is in trouble. It thats true, that would be a big setback for john boehner, if he thought this move was going to put pressure on the obama administration. Huge, huge. In the negotiations. Huge setback. Couldnt agree more, john. Huge setback. Quickly, paul ryan and Grover Norquist endorsed plan b. Does that work . Help the whip gets votes in line or not . Sure it does. But it does not help, the club for both Freedom Works and organizations politically active on the campaign trail and legislatively said, no, dont vote for this. I think that could have created some complications for them. We could lose 20 members. They showed that tonight on the spending cut portion of the bill, but they cant lose a lot more than that. Cant lose 30 members, and there were counts earlier today showing they lacked 30 votes of republican members of the house. So well see whether they can put this back together and how serious this problem is. All right. John harwood, thanks very much for the update. I said earlier, well see a lot of john as the evening proceeds. Now, my great pleasure, welcome back to the show, i call him americas mayor. The former mayor of new york city. Rudy jew Rudy Giuliani. Most folks want you to run again, former mayor, but i dont think thats in the cards. Let me begin with an easy question. What do you make of this millionaires threshold . John boehners plan b, spending cuts, tax rates . You tell me. I agree with heather. Probably the best john boehner can do. Difficult for the republicans. 80plus just ran four years ago with a promise they wouldnt raise taxes. I can understand why hes having trouble getting those votes, but i think he has no choice but to the try to pass snag soomething pushes the ball back into the president s court. The passage of the spending decreases was important. Thats really where the emphasis should be. In tan ideal world, shouldnt raise taxes, shouldnt give the government more money because they