Ever before in history, so says the treasury secretary, making a staggering promise. This is going to be the biggest tax cut and the largest tax reform in the history of our country. And we are committed to seeing this through. The biggest in history. That is a long time. That is a high bar. Can the white house deliver . Suzanne is on capitol hill. Our christina is in washington with all of the numbers. Lets begin with the politics of this. How do they make it happen . Reporter well, thats a very good question. This is a far cry from what we heard from donald trump during the campaign. Some of his slogans saying wall street was getting away with murder and they would have to pay for it through taxes. But dealing with tax cuts for businesses perhapsing down the road, kicking the can down the road for families and individuals. But as you had mentioned, we have been watching the treasury secretary at this event in washington. Started at 8 30 and he outlined kind of a broad brush strokes of what this means for the president , what this means for the American People and of course big businesses. He said he started his conversation with President Trump at 7 30 this morning, that the two of them talked and that they spent a good deal of time in the oval Office Yesterday working out the details that the president is very much involved in making this happen and one of the things that they are really pushing back here, of course, is how they are going to pay for these very big tax cuts. And the thing that he is talking about is putting it out there saying that they are counting on big Economic Growth to pay for this. Take a listen. The difference between 1. 6, 1. 8 and 3 gdp is staggering. It is trillions of dollars of revenues. Its tons of jobs. This bill is about creating Economic Growth and jobs. And youre right, we should call this the 2017 tax reform for Economic Growth and jobs to make America Great again. I just named it. So perhaps that will be the name. They know that this is a daunting task. It was back in 1986 the last time tax reform actually passed. It was Bipartisan Legislation and what is noteworthy on the political side is what is not included in this, and that is the 1 trillion program, the infrastructure building program. There are still questions about how that is going to be paid for. All right. Just because the white house says it is the biggest tax cut and tax reform in history, it does not make it so. It depends on what we get out of the numbers here. Lets try to understand. You have been digging through what the actual proposal is. Thats right, guys. So eventually what the administration wants to do is make companies more competitive so they can hire more people, invest in the economy and the administration firmly believes that one of the reasons the companies in the u. S. Are not competitive is because of their high tax rate. If you take a look around the world, they do have a point. 35 in the u. S. Versus much lower rates around the world. But in reality, as you guys know, 2016, the gao put out a report that most companies do not pay that 35 rate. Also, in the plan, what is going to come out we think and the treasury secretary confirmed this today, there would be a 15 reduction for Major Companies and also through for pass through entities, which are basically Business Owners who put everything on their personal return, business income as well. Thats major and that actually can impact President Trump as well. Now, the big question is, as suzanne eluded to, how do you pay for it . There is a 4 trillion hole. But there are two other questions that are doing going to be at the top of Business Leaders minds. One, is this temporary, or is this permanent because coes want to plan forward. They want permanent change. And if this is temporary, it is not exactly or its not at all tax reform. And then the other big question for average americans is what happens to the middle class . Why arent we hearing more about how this plan will impact the middle class. Those are two big questions. Overall, though, if we go back to the issue of Corporate Tax cuts, there is no way to guarantee that companies that save on their tax bill will go ahead and take that money and reinvest it in jobs and investments unless there are programs to incentivise them to do it. What we could see is a scenario where the Companies Save on taxes but tax that money and reward shareholders in the form of dividends and that necessarily wouldnt generate the kind of growth the administration is hoping for. And thats exactly what happened in 2004 with the big tax holiday. They did not add jobs. The Biggest Companies cut jobs and they bought back a lot of shares and the money went back to their shareholders. Will it be different this time . In the meantime, President Trump is unleashing on twitter this time. He is targeting the judiciary bran after an effort to strip funding from sanctuary cities was blocked. He wrote first the ninth circuit rules against the ban and now it hits against sanctuary cities. See you in the supreme court. And then out of our very big country with many choices has everyone noticed that both the ban case and now the sanctuary base brought in the ninth circuit, which has a terrible record of being overturned. Busy writing from the president this morning. Joe john s live at the white house with more hof this reaction. Reporter this is a case that plays into the concerns of president s political base, and so does the outrage emanating from the white house over the last several hours. But the language perhaps is a bit strong given the fact this is a matter under litigation. The white house, among other things, complaining that an unelected judge ruled against yet another executive action by the white house. We have some of the language here from the white house. The rule of law suffered another blow as an unelected judge unilaterally wrote imgrigs policy for our nation. City officials who authored this policies have the blood of dead americaning on their hands. And there is this prediction we are confidence we will ultimately prevail in the supreme court, just as we will in our lawful efforts to impose immigration restrictions necessary to keep terrorists out. On the other side of this case, this ruling was praised by the likes of the mayor of las vegos angeles, who talked about it last night. Unconstitutional political threats against our cities cannot take away our rights and they certainly cant steal our tax dollars. So as you might have gathered, the administration is planning on appealing this and they are predicting that it will eventually be overturned, even if it has to go all the way to the supreme court. John and poppy . All right. Joe johns at the white house. Thank you very much for that. Lets talk about all of this big breaking news this morning. Laura, got to start with you. What exactly did the court do here and what is the law School Impact and what is the political impact . Well, the court honored whats called the tenth amendment and said, essentially, two things. One, the right to actually have federal funding can be conditioned, but its got to be done beforehand. It cannot be done after the fact. And, so, when you have the tenth amendment, it essentially says you cannot common deer these state and local officers and enforcement agencies to take on the role of the federal government. But if you are going to do that, they have to have notice and opportunity to be heard beforehand. And what it sounds like happened with this particular executive order is that the rug is being pulled out from under these cities who took funding, did not know about the new conditions and now are being asked to align themselves and their priorities with that of Donald Trumps campaign, and that is not going to be an effective strategy when you have congress, who is in charge of allocating the spending. This is not the first. This is not the second, but the third time that a federal judge has stepped in to block something having to do with what the president wants to do with the borders or with immigration right now. Is he essentially learning here the power of the judiciary . And the second part is even though it may not be done here, is he okay with the political dynamics at play . Well, to answer the second question, yes. He is okay with the political dynamics at play because it gives him the opportunity to remind voters what he promised he would do and to underscore that through his tweets of why he wanted to have this done. Not only the travel restrictions, which were stopped by a federal judge, but also the sanctuary cities. Look, president s face this all the time. I think president obama had 15 of his executive orders that were that a federal judge interfered on. And, so, this is a humbling experience. But they all come back out and say, this is why i want it done. Were going to take it further or sometimes they just step back and move on to the next thing. Depends how politically important that whatever it is is to them. Lets talk about what this administration is promising will be the biggest in history tax cut and also tax reform. You might as well hang a 4 trillion sign on paul ryans office door because he is going to have to deal with this and get this through congress. Can he do it, or is it dead on arrival . Well, i dont think its dead on arrival. Were talking about a tax cut proposal and republicans love tax cuts. I have deducted in conversations with republicans this morning concern about the deficit and how this proposal would affect the deficit because even though it would be paid for via Economic Growth. Maybe. And that well, according to the administration, their argument is that Economic Growth would pay for this. But as i was about to get to, a lot of republicans who do actually believe in dynamic scoring, and thats the technical term for this, are themselves concerned that that is, in fact, not the case. And, so, i think that this is going to be a lot more politically tricky than the white house might assume or maybe theyre prepared for that. But here is the larger question, poppy. To me it is interesting. The secretary is not just promising a large tax cut. Hes saying that what theyre going to do is the largest tax reform in u. S. History. And, so, i want to see today if they actually propose tax reform. In other words, are they going to propose eliminating a lot of deductions and carve outs that are popular with many constituencies and republicans on capitol hill because reform means simplification and overhauling how you pay your taxes, what kind of deductions you are able to claim and all of that. If they dont propose something specific and expansive in terms of how you alter the structure of the code, it is not really tax reform. The one reason im sus pirgs is reform is how you pay for it. And without that, were not really dealing with tax reform. And if we are, then its very, very complicated on the hill. If not, its still complicated because of the deficit implications but it may be easier to create consensus because every republican is in favor of cutting taxes. They say this is the biggest tax reform in history, but we have not seen a single proposal which is reform rather than just a cut. And on dynamic scoring, this would take more. It would take wicked dynamic scoring in order to make up 4 trillion, but economists will look at that. There is another aspect of this that is interesting to and it has to do with the pass downs which basically mean all businesses would be included in some of the tax cuts and the New York Times says will give democrats a tailor made line of attack. I think we could probably put the cnn count down clock here and it will be within the hour we will hear about democrats on this. I think democrats already had a tailor made line just talking about what david was saying a moment ago. There is a lot of skepticism even privately among republicans that you can go from less 2 to over 3 gpd growth just based on dropping the corporate rate, potentially cutting the top marginal income tax rates and then add on this idea of, you know, extending those, you know, changing the tax code to favor businesses like trumps. Democrats have talking points. Theyre already not inclined to give the republicans help with this. I think the republicans can do this, but it is going to be a very tough job to convince enough people to vote for, especially in the senate. All right, guys. Standby. A busy morning. So many issues being discussed right now. The president s tax plan as you just heard about right there could get some push back from his own party. They are going to have to explain why they dont care about the hole it might blow in the deficit. Plus, former National Security advisor Michael Flynn facing new legal pressures with republicans and democrats suggesting he did not obey the law when disclosing his business dealings with russia. Invited to the white house to get a briefing today on north korea. This as north korea says it will not avoid going to war. Lots of wrinkle creams believe the more mysterious they sound, the more. Powerful youll think they are. Its time to see what power really looks like. New neutrogena® rapid wrinkle repair with accelerated retinol sa. Clinically proven to reduce wrinkles in just one week. Wrinkles . Your time is up rapid wrinkle repair. And for dark spots. Rapid tone repair. Neutrogena® see whats possible. When they thought they should westart saving for retirement. Le then we asked some older people when they actually did start saving. This gap between when we should start saving and when we actually do is one of the reasons why too many of us arent prepared for retirement. Just start as early as you can. Its going to pay off in the future. If we all start saving a little more today, well all be better prepared tomorrow. Prudential. Bring your challenges. Our 18 year old wase army in an accident. 98. When i call usaa it was that voice asking me, is your daughter ok . Thats where i felt relief. Were the rivera family, and we will be with usaa for life. So the hits just keep oncoming for Michael Flynn. The House Oversite Committee saying he broke the law, by not disclosing payments from russia and turkey during the process of getting his security clearance. One senator says flynn could be looking at years behind bars. Our panel back with us right now. Behind bars . Really here . What kind of legal jeopardy is Michael Flynn under . Well, the kind that says he may fit up to five years in prison and a hefty fine because it is a felony to withhold or falsify any information. The informs ation were talking about is he filled out a form to achieve top security clearance and he failed to disclose relevant information being that he was taking money from a russian entity and also that he late filed to say that he was in fact acting as a Foreign Agent on behalf of turkey last year. This collective amnesia hes had from meeting with the ambassador to the disclosure forms suggests that perhaps he has done more that falsify or mislead. Even Vice President pence hes misled. And of course the risk here is that he is facing criminal exposure, which is why he wanted to have immunity. He was not going to get that, according to any of the congressmen now. But what he could still have if the prosecutor decide whatever story he has for them is going to lead them farther down the path for the russian collusion investigation, they may be able to make a deal with him, but immunity is probably off the table. More news is this letter in which they say that the white house, you know, was not giving them some key documents related to this. The white house says, look, we dont have all of them, but frankly, these are documents the white house can get. So now you have sean spicer trying to put distance, even more, between themselves and flynn. Listen. What he did or did not do, that all happened he filled that form out prior to coming here. Not with us. Who is Michael Flynn . This is this distance, distance, distance that we heard the white house do when it came to paul manafort. Wouldnt this stuff have come up in the vetting process . And how dangerous is this for the white house . Very dangerous. Again flynn has legal problems, but there is a real problem for the white house in terms of how this at least looks and then if you go further into it how they contacted the transition of vetting, right . I mean, these things about general flynn working for the turkish government and also his speech or the speech he gave where he sat next to president putin at the rt dinner, these were knowable things. These could have been found out if the Transition Team had done a methodical job of vetting him and of course he also should have disclosed these things. The white house has never been able to get its arms around that or the idea he was fired because he misled Vice President pence. But at the same time when the white house put out that line they also said he didnt do anything wrong. So if he didnt do anything wrong by talking to the russian ambassador, which is what he was said to have lied to Vice President pence about, why did he have to lie about it to Vice President pence and again why didnt the White House Team or the Transition Team have some awareness of what was going on in that regard. These are the questions that i think still dog the administration. And will be being asked in various hearings that come out. We have word of an amendment being circulated right now on a Health Care Proposal that would allow states to opt out of requiring insurance provider to give essential benefits and also it would mean that if you have preexisting conditions you could be charged infinity if states waive their rights for that. David, is this deal for real this time . I think its for rea