Beautiful new Health Care Bill, fully approved, ready to go. Lets start with that. Well move to taxes as well. Fbns adam shapiro here in new york making a guest appearance. He spent a lot of time in washington in recent weeks. Charlie gasparino here to break it down. On this health care thing doesnt look like a lot of confidence, huh . Depends who you talk to. Newt gingrich thinks mcconnell will twist armies and get it done. If there is anybody good at twisting arms, getting something through, a face saving way coming out of this it will be mcconnell. Maybe what you will see not the deal but the repeal, right . You get the repeal and deal, you work to fix later. It miss them sort of semiface saving way and get to tax cuts. Connell rand paul brought it up and president the problem with repealing not replacing down the road you set up for the midterms an attack that the democrats can say you repealed health care and actually the cbo scored this in january. You would be throwing Something Like 32 Million People into being uninsured. Its a negative for republicans if all you do is repeal. The other problem, when has this congress ever fixed something that it kicked the can down the road . This would be open door to democrats with republicans i bet markets go up on that. Just the repeal . Yeah. What investors are worried about the fiscal stimulus is never coming. Connell allow them to move on . If you caulk to investors right now if you talk to a lot of smart money, Institutional Investors pulling out, a lot of average people putting money in, that is bad sign for the markets. Institutional are pulling out because they dont see any daylight, Corporate Tax cut theyre myopically focused on. If you see that, that you could see pops in the market. By the way that could be decent political cover. Mitch mcconnell wants to get this off the table. He could have done it before the july 4th recess. He didnt get to yes delayed the vote. He doesnt care up or down, he wants it out of the way. Connell the bill wouldnt do that. To charlies point get us moving towards taxes in the time being, very short term. Get you time being moving toward taxes a worst situation for republicans. Explain from a political standpoint, isnt there a facesaving way out of them they dont have to do a grand redo of obamacare, just something that maybe moves the ball depends who you want to annoy the most. Facesaving option, work with democrats to shore up exchanges. Deal with it again. You will infuriate ben sasse and rand paul and conservatives. That just props up obamacare. There is face saving with the voting public but not face saving with the conservative base. Connell we know on taxes that treasury secretary mnuchin told neil in march, that tax reform would be signed, sealed delivered by august recess. There is interview we did it. We played it a lot on the show. A plan could be introduced by september and maybe get passed by end of the year. Lets continue with charlie, adam and Hadley Heath Manning into the discussion. Good to see you. On this idea of getting taxes, what charlie is getting at, get past health care to the extent, you even if twopart bill, move on Start Talking about taxes, even doing that done by end of the year what odds would you put on it . I think there are some odds in their favor but republicans are making a mistake thinking of policy items in terms of checking off a list of things they promised to do. The problem with Health Reform in large part they have been having debate on terms of left, talking about how many people who have Insurance Coverage, majority of people gained Insurance Coverage under obamacare were thrown into the medicaid. Change the framing of the debate. Dont talk about on the left terms. Talk about Economic Opportunity and wage growth and many things happen for americans across the income spectrum if we get this done. Connell back to the market discussion we started a few minutes ago, on taxes, what is priced in now do you think . It is hard to really say. A lot of people think depends who you talk to. Half the Institutional Investors i talk to say tax cuts are not priced in. Anything you get now would be upside surprise and watch markets go up. Connell i heard people say just the opposite. I heard people say just the opposite. My guess if you dont get tax cuts, cant agree on that, you will have some market selloff. You would almost have to. Listen why do markets go up . Because corporate earnings going up. Corporate earnings have been modestly okay. So listen, my point is just this. If you do get a tax bill, if it looks like theyre moving that way, that is upside surprise for a lot of people and you will have buy in. Connell could this be a split situation, adam . The same way we talk about health care and look at Corporate Taxes and you say that has more bipartisan support you could get people to support it and help Financial Markets and do that and help simple answer is yes. You will get a tax bill by the end. Year. Mnuchin and cohn and orrin hatch and key is kevin brady. Theyre arguing about the consumption tax, border adjustment tax you have to pay for the cuts. Things wall street will love. Republican blueprint from 2016 doesnt drop Capital Gains but it allows to you deduct 50 of the net Capital Gains. Essentially dropping capitalgains tax. Business community is pushing back a big way to pay for tax bill, they want to remove reductions for state and local taxes. People in new york and illinois is it fighting against that. Business community is fighting against that. That is interesting. One other thing, can you get a Corporate Tax cut without passing the border adjustment tax . That is the key question to ask kevin braid different we may get that opportunity on thursday but heres the problem. Cohn and mnuchin said . That was originally an opening negotiation. Now theyre sticking to it. Orrin hatch said no, 20, 25 . If you look at historic tax reform 1986, when they did very much several of the same issues on the table today were on table then, they determined in treasury in 86 and could not lower Corporate Tax rate and unless you had a Corporate Tax rate of 33 . How you will do it this time at 15 or 20 defies math. Then to come up with keep it revenue neutral or allow deficits increase. Connell your argument, hadley, that the devil would be in the details. Adam went through a lot of details that could happen. Is that argument politically and they could bring and win with, do you think . When it comes to winning over the public the devil may be in the details policywise but in terms of communication strategy for the gop we know exactly what democrats will say tax reform. This is only beneficial to the rich. Turn it into class warfare. Only benefits corporations. Republicans need to get ahead of it, explain how reducing Corporate Tax rates benefits workers who pay a huge share directly of Corporate Taxes. This is not one class versus the other. Wall street will like tax reform but main street will love tax reform too. Republicans have to make the case. The proposal, if they were to remove deductions for state and local taxes you put Chuck Schumer in the awkward position defending socalled wealthy people. People in texas dont he deduct income tax. I dont believe they have it, florida they dont have income tax but do in the state of new york. What Chuck Schumer, democrats have to do we have to preserve the deduction for people that make over 100,000 an year and itemize. That is the play. Forget the policy issues, putting democrats in the position of defending the wealthy. Connell one of the stories out there, administration put back on it, it is not true, you could make the argument on personal income tax rates going down to 35. Push the top rate up to 40. They say that is not true. Youre able to pay for some of the socalled middle income tax rates cutting and also Corporate Tax rates. I dont see how republicans vote for tax increase. Connell i dont either. That is why republicans voted for tax increase in 1986. There was 150 billiondollar tax increase on businesses in historic reagan tax cut. I know but they didnt, they didnt push the upper rate up. There are tax increases and tax increase. Right. If youre paul ryan i cant imagine you arguing we need to take upper rate connell get rid of tax cut for the rich. Orrin hatch said were not cutting taxes for the rich. He said it in the interview. That is when they get rid of deductions. Connell quick last point, hadley, if you want to make it what happens here . Looking at 40 tax rate on individuals, republicans have to keep in mind, remind the public, many Small Businesses file you through the income tax code and that would be bad policy and. Connell it is 19 nine. 6. They say it was 35. That story they shot down. Appreciate it. At the moment president tweeting out by james comey, you may have seen this morning, saying that he leaked classified information. Well have the latest from the white house. Check in with blake burman on that. On the trump Putin Meeting in the books but russia story is anything but going away thanks to the don, jr. , story out there today. Well have blake on that, what it means for white house agenda after a quick break. So we need tablets installed. With the menu app ready to roll. In 12 weeks. Yeah. The world of fast food is being changed by faster networks. Data, applications, customer experience. 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Connell we were talking taxes and health care a moment ago but what is coming out white house, tweets about mr. Comey. From the president , another comey bombshell . That is what President Trump is saying essentially. He has issues of his own to deal with his son well get to in a second. Blake burman joins us with latest from 1600 pennsylvania avenue. Hey there, blake. Reporter connell, important to report that the is coming from the hill, widely read magazines or publications, and theyre reporting this, jim comey, former february by director held and leaked out to the media contained classified information. The hill is reporting half of those memos contain classified information at secret or confidential level and that is what appeared to have caught the president s eye on this day as he tweeted out earlier this morning the following, im quoting here. James comey leaked classified information to the media. That is so illegal. Now as you remember comey had testified that because they were hess memories and he wrote them down on paper, that they are essentially owned by him. However, because he was the head of the fbi at the time, the other side of the argument is, those are government documents. Either way, the white house is saying on this day that this is a story that has legs. So the boy scout choir boy defense doesnt hold up here, because if it contains classified information he is apa apparently violating at the very least what all members of the fbi sign. Reporter also today, President Trumps oldest son, don, jr. , continues to push back against a New York Times detailing a june 26th meeting he, Jared Kushner and Paul Manafort had with russian attorney. Trump, jr. Said initially the meeting was about adoption policy but brought in the scope, now admitting the attorney promised damaging information on Hillary Clinton. Trump, jr. , put out a statement which he defended himself n a tweet this morning he said the following. Obviously first person on a campaign to ever take a meeting to hear info about an opponent. Went nowhere, had to listen of the top democrat on the house intelligence committee, adam schiff, one of the folks looking into part of russian meddling, potential russian collusion story they are investigating up on capitol hill, he, however, connell, called this story, quote, very significant, and said it certainly raises questions. Connell just another monday. Blake burman, thank you, at the white house for us. The other thing we heard from President Trumps twitter account, move forward in working constructively with russia. Well talk a few minutes about all of this. Weekly standard Senior Writer mike warren with us, former bush 43 spokesman mercedes schlapp, and democratic strategist, michael hopkins. This whole idea, mike warren, let me go into this with you first, whether you want to bring the done, jr. , sorry or not, whole idea of moving on from the russian election, your take. Look intelligence agencies of the United States say exactly that is what russia did. Vladmir putin apparently didnt admit it in the meetings and president didnt push him on it. Important to know not just because what happened in the 2016 election but what would happen in the future elections. Is russia going to try this again . Without any significant pushback very likely they will. Connell the white house argues, Reince Priebus doing it yesterday, there was some pushback from the president , i should say on that in that meeting. But we werent in there. Rex tillerson was. You get a number of different stories, mercedes bit. The idea we can even work, theoretically that we can work constructively with russia, is that even fair . I think you can work somewhat constructively with russia on issues for example, syria, they came to a ceasefire agreement this past week. When it comes to eshoo of hacking or cybersecurity, you know, that is where i dont see youre going to find Common Ground with russia. As we saw the president had to step back from his comments on the cybersecurity unit. That he said he could create with russia. Connell right. Obviously i think we have to make it very clear that russia is our enemy. They dont have the United States in our best interests. We have to come down, President Trump criticized obama on the fact he did so little on handling the russians and their meddling in the election. He stayed pretty quiet about it, i think for donald trump he would be in position of power, position of strength if he is able to say, look well make sure this doesnt happen again in u. S. Elections. Connell michael star hopkins, the don, jr. Story, which blake brought up at end of his report, ive heard both sides all morning long, some say no big deal, youre working on campaign, you have Opposition Research of course you will listen to it. On the other side you know, well, what weve been talking about all along, there is working together between the russians and trump. How significant is in your view. This is insanely significant. Lets think about this in nonpolitical way. What we have is the son of a president ial nominee going and meeting with a foreign adversary in an attempt to gain information that could potentially be incriminating to use against another american. That is would cause Ronald Reagan to be turning over in his grave. Connell not just average Opposition Research . Can i connell mercedes, insanely significant, is that overreach . What is your view. Here is the deal, michael makes that point meeting with a foreign agent, clearly on democratic side, ukrainianamerican consulting for the Democratic National committee, meeting at Ukrainian Embassy to that is complete distraction. How is that disdistraction were talking about the facts that foreign agents having these conversations. Connell michael, let her finish. Lets put it all out there, is, i dont like the fact that there are foreign agents talking to Campaign Officials whether it be democrat or republican. But we have to lay it out there. If it is russians, ukrainians. They have the sort of Opposition Research, look my inclination never to have the meeting. What you are dealing with foreign agents having Opposition Research. Puts you in difficult position. Connell let me ask anytime stories come up, what effect does this have on the agenda, getting on the conversation going with only threeweek congressional session on health care, moving on to taxes what is the effect, has been effect on agenda all this . 2 hurts the administration and gives more fuel to the Mueller Investigation. Look, got to think of this from a position of law enforcement. You have in this particular story don, jr. , saying he never met with any russian people, ru