More regulations, no drilling, war on coal, everything you saw from Obama Hillary clinton would have done on steroids, at least thats what she ran on. Neil she would probably ram that through republican congress. Would have been tough. You have a republican congress. Neil youre absolutely right. You literally have a stopgap on everything, marginally upside surprises which is health care maybe some day. Who knows. Neil they dont give that up do they . Taxes. Taxes should be cut. Neil it is getting later and later. Here is the other positive for the market. A lot of people are telling me tax cuts are not really priced into this thing. What it is working on essentially decent to middling Economic Growth like obamaesque Economic Growth between one and two, somewhere in that ballpark. Low inflation, low Interest Rates and decent corporate earnings, put all that together and some marginal optimism that donald trump is not a socialist, thus he wont regulate the economy. He can do a lot of things to deregulate the economy through executive orders. That is all playing in here. Neil you know, ive gotten interesting vibes from capitol hill. One was Steve Mnuchin yesterday, treasury secretary saying, most households paying top rate wont get a tax cut. There is a move on the part of some prominent republicans to keep them out of it, not to hike their taxes like steve bannon, not give them a cut. How would that go down . If that, upper rate stays marginally the same, if you have lower Corporate Tax rate, a lot of people think that is net positive for the economy. And for the markets. I personally think we should be giving tax cuts. Im a supply side neil corporate rate cut would outweigh whatever happens or doesnt happen for the wealthy . Market analysts think that the corporate rate cut is more important than individual rates in terms of helping the economy by boosting corporate earnings, by allowing some degree of repatriation of overseas money if you work that into the equation. And thus, good for the stock market. If it is good for the economy, generally booed for the stock market and good for the corporate earnings. Neil i think you might be right, marginal rates are delayed past this year, the rich dont get theirs, but the corporate rates come down maybe not as low as 15 but they come down a lot lower than 35 , maybe to 20 , we could continue to be off to the races . I think, when i talk to people, they will say that is an upside surprise. So it is not even that. We could get a significant boost in the market if that is what goes down. Neil did you tell me the prevailing top rate is 27 so you want to go substantially below that. You have to bring it down to 25 to 20. There is psychological boost when you bring it down. Does that mean the market wont sell off . Of course. Does that mean all straight runs up, no corrections . There is always corrections and there is always but when you start thinking about it, if you have decent corporate earnings now, you have a tax cut, guess what, if the fed doesnt massively hike rates and dont get massive inflation, we probably wont, that is buy for the market, good for the economy and net good. People forget that donald trump can do a few things really well, okay . In the next three, four months, and his presidency can take, go from 180 from dysfunction to wow, look how good this is. If he gets economy going and gets fiscal stimulus. Neil stay focused instead of going through personnel like me through a ponderosa buffet. Or me at a boar, at martini bar. Im just telling you that if he does those things right, neil, that is what the market is saying because it is operating really without the notion neil tax cuts minus core ones, because i assume theyre getting, maybe not, they dont happen this year or market will hold their own . I think they can if corporate earnings stay up. It is all about corporate. You need Earnings Growth. Neil well have backtoback doubledigit hike quarters. Look at earnings they are good now, minus tax cuts. Throw in the tax cuts. Im not telling people to buy stocks right now. Im always very cautious. I dont give market advice. Im laying groundwork why this is up now, why might get better. Neil lower third, gasparino says, buy, buy, buy . Dont put that there. I do not give advice. When i talk to people, talk to people, Institutional Investors and traders, tax cuts are not priced into this market. Tax cuts are upside surprise. If you get decent Corporate Tax cut specifically it is really good for markets. That doesnt mean it wont be pare back, but good long term for markets. Neil buddy, thank you very much. Charlie gasparino. You need to drink Pumpkin Spice lattes. I hear that soothes it. Neil youre free. I will get you. Neil karl rove, with us, excellent political mind, really good writer, bestselling author. Karl, i dont expect you to be a market soothsayer although youre pretty good at reading markets. They seem to be oblivious what is going on with the personnel sheikh upor not too concerned about it and more focused on just big macro issues that look good as charlie said. What do you think . Yeah. I think there is a lot of wisdom in that. I think theyre focused on fundamentals and corporate profits are strong and i think they do believe there will be a Corporate Tax cut. Im with charlie, im not certain how much when you have got a personal income tax system in which 50 of the filers pay 1 of the tax, and top 50 of filers pay 99 of the tax, if you, if you are only focused on taking people who have modest tax burden and cutting their taxes, it will have effect on ability to spend but not as powerful as Corporate Tax side which will be more of a supply side encouraging investment in the economy particularly if we can get repatriation of some of those trillions of dollars. Neil i know we can, karl, but on this im not optimistic. I think there will be a tax cut to your point. It will be about reconciliation. It wont be dramatic tax reforms. My opinion rich will be left out of it. And i dont know if that is going to be everything that everyone was looking forward to when this presidency started . Yeah. Well, i do have confidence that they will get a tax cut, that they will get a Corporate Tax cut. Neil i agree with that. I just dont he think it will be eyepopping off the charts . I agree, but i think they will get repatriation of foreign earnings. This is one of those weird moments where there is bipartisan support for doing that. If that happens then, i think well get a good economic bump from that. Neil you talk about bipartisan support. A number of Senate Democrats have put out, karl, this condition plan for working with republicans. Part of their demands, 45 of 48 Democratic Senators signed on to this, no tax cuts for top 1 . No fast tracking. In other words, dont use reconciliation process, and no deficit finance cuts. What do you make of that . Well, that is their opening gambit. Neil right. Theyre feeling rather bullish right now in the aftermath of the failure of Republican Health care effort. Well see how it goes over the long haul. You notice that they had, you know some democrats who were privately saying to their republican colleagues we want to work with you you on this. Republicans are not going to give up the advantage of doing this through reconciliation. Neil by the way three democrats did not sign that letter. Not surprisingly joe manchin of west virginia, Heidi Heitkamp of north dakota, joe donnelly indiana. Up for reelection last year in States Donald trump won last year. I would suspect more democrats, nelson of florida, mccaskill of missouri. Maybe tester of montana, who will be saying you know what . Were not going to, were not going to insist on the whole load. We cant to get something in return for this. They will find some face saving way, well you didnt cut taxes for people at top. I wanted to encourage Economic Growth in my state and the country. So i agree with you though on fundamental point that i think youre making which is, at beginning of the year we had expectticses well have a very big robust bit of tax reform and tax cut. Weve slimmed down the expectations for amount of reform weve got. Also i suspect reduce somewhat our expectations for breadth of the tax cut itself. Neil when i have you here, i didnt have a chance to talk to you when you did this, john mccains no vote on skinny repeal, what did you think of that . I mystified. First of all he went to the floor, said we need to do this in bipartisan way. I will vote to proceed on the socalled skinny reform measure because i want to have the process continue. He then joined with three other republican senators said we want absolute commitment from the speaker of the house that if the skinny reform passes the senate, that it will not be taken up immediately by the house and passed in its current form . Instead well go to Conference Committee and grind through this process more. Speaker of the house based himself in front of senator mccain, senator graham, and two others you have my word we wont take up measure. Well refer it to the Conference Committee. Having received that commitment, mccain turns around and votes no on the floor. One thing he insisted upon he got. Rather than by starting off saying im going to vote for something in order to continue process, turns around and votes no, stops the process. It doesnt make much sentence. Neil im wondering karl, what your thoughts are on changes going on within the white house . We have a lot of personnel come and go. Anthony scaramucci latest. General john kelly running things as chief of staff. He has said, president backs him up, everyone goes through him. Will they . Well i hope they do because everyone inside of the white house needs to know that they work in an organization, and at the top of that organization between them and president is chief of staff. Does that mean they never walk into the oval to share a thought . No, that doesnt mean that. But it means they dont use their privilege of talking to the president in order to endrun the policy process in the white house. I worked for a president who insisted that his chief of staff, first andy card, josh bolton, be seen by all of the senior people in the white house as their boss. Andy card was my boss. Sure, i could tell the president something but i better make certain i was not endrunning policy process and andy card was aware of what i was saying and doing. Neil it is a little different. Ivanka trump saying she looks forward to serving alongside general kelly. What do you make of that . This is problem. In the west wing you dont want somebody you cant fire. If your soninlaw and daughter are in the west wing, it is their responsibility to go out of their way to make certain theyre not seen as colleagues of the person in charge of the west wing. That is to say, they dont see it as peers of the chief of staff. They are subordinates who work through and with the chief of staff in other to advance the president s agenda. It is incumbent upon them, if they want to make the west wing first to restrain themselves. I had a longstanding relationship with president bush. Weve known each other since i was in my early 20s, and he was in his mid 20s. He made it clear, dont abuse that relationship. Your colleagues, many of whom have known him far shorter time than i had, those colleagues are critical to the success of this presidency. So be a good colleague and dont abuse that relationship. And it was good advice. More important advice when youre favorite daughter and soninlaw of the president of the United States. You better make certain youre serving the president best by serving him through the chief of staff. Neil this white house now is with the whole scaramucci saga, what did you think of that . First of all it is sort of painful because ive known anthony for a long time. He is ebullient personality but general kelly had no other option. I was not surprised he immediately dismissed hill. I would have been surprised had he not. Anthony did things and said things that were inappropriate. I thought it was interesting, monday he explained his relationship with Reince Priebus saying they were brothers like cain and able. Axios reported that ivanka and jared brought scaramucci into the office forcing Reince Priebus out. So discouraging would force resignation. That may or may not be true. If it is true, cain did kill able, like cain in the bible, who was sent out into the wilderness, Anthony Scaramucci has been sent out into the wilderness. Neil no prospect after white house job right . No, none at all. Neil my friend, good to catch up with you. Karl rove. I want to say one thing. Varney made an attempt to lay the predicate believing that if the market jumps over 22,000 it is his, that he is responsible for that, but markets are forwardlooking. I think upward movement in the morning they were looking forward to your program. Neil i totally agree. If it crosses 22,000, it is you and varney. Neil i so had it with that guy and the fake british accent, i am up to here. It is not fake, it is a real british accent. Neil you are wrong. I have the birth certificate, brooklyn, new york, you would never believe it. Karl, thank you very much. Thank you, sir. Neil meanwhile the senate is still going to be at work and will still go on next two weeks. The only question i have, what will they be doing, after this. Potsch you each drive a ford pickup, right . in unison russ, leland, gary yes. Gary i have a ford f150. Michael ive always been a ford guy. Potsch then i have a real treat for you today. Michael awesome. Potsch im going to show you a next generation pickup. Michael lets do this. Potsch this new truck now has a cornerstep built right into the bumper. Gary super cool. Potsch the bed is made of highstrength steel, which is less susceptible to punctures than aluminum. Jim aluminum is great for a lot of things, but maybe not the bed of a truck. Potsch and best of all, this new truck is actually gary all laughing oh my. Potsch the current chevy silverado. Gary im speechless. Gary this puts my ford truck to shame. James ill tell you, i might be a chevy guy now. laughing itwhats possible. Nk rethink the experience. Rethink your allergy pills. Flonase sensimist allergy relief uses unique Mistpro Technology and helps block 6 key inflammatory substances with a gentle mist. Most allergy pills only block one. And 6 is greater than one. Rethink your allergy relief. Flonase sensimist. Im the one clocking in. When youre clocking out. Sensing your every move and automatically adjusting to help you stay effortlessly comfortable. There. I can even warm these to help you fall asleep faster. Does your bed do that . Oh. I dont actually talk. Though im smart enough to. Im the new sleep number 360 smart bed. Lets meet at a sleep number store. Who knew that phones would starentertaining us,ng . Getting us back on track and finding us dates. Phones really have changed. So why hasnt the way we pay for them . Introducing xfinity mobile. You only pay for data and can easily switch between pay per gig and unlimited. No one else lets you do that. See how much you can save when you choose by the gig or unlimited. Call or go to xfinitymobile. Com. Xfinity mobile. Its a new kind of network, designed to save you money. Our objective is to pass tax reform by august recess. That is timetable and realistic and something the president and i are commit todd doing. Neil by august, voted, done, agreed. And signed. Neil that was the hope anyway back than, back in early march. Not so now. The read on all this with montana republican senator steve daines. Senator, good to have you. Now the strategy to get a vote at least in the senate by november, is that doable . Well, neil, spent 28 years in the private sector, we used to say importance of focus, the main thing is to keep the main thing the main thing. We campaigned last seven years to repeal and replace obamacare, to move tax reform forward. We should call tax reform the american Jobs Creation act. This is about growing the economy. Making america competitive again. This is what weve got to do. I left the private sector to enter Public Service for these reasons, to swing bats at the big balls. It is Health Care Reform, it is tax reform the failure is not an option. Neil i know that. You echoed it on health care. But you failed at that one, not you specifically but is that november team table, however the urgent you feel it is, doable . It is. Well, it is doable. Weve got to do it. In fact on Health Care Reform, remember this Health Care Bill is like a cat with nine lives. It was given up for dead once in the house. It came back. The senate has got to be able to walk and chew gum at the same time. We have to juggle at least a couple of balls and i think we continue to work on Health Care Reform. This grahamcassidy idea something we need to consider. It has white house supporting it. We need to bring it to senators to talk about it. We can do that and move forward on tax reform. Neil i know you can, senator, i know youre working hard and not part of the group rejected measures to keep the debate going. How you do you feel about the surprise no vote of your colleague, senator john mccain on that skinny repeal measure. It was disappointing. Surprised a lot of folks. I respect senator mccain greatly. He is an American Hero but i disagree strongly with his vote. That was a vote to move the process forward, to continue to dialogue with our friends in the house and get a bill on the floor of the senate and house and on the president s desk in the next month. That doesnt mean you give up. When you have setbacks in life, if you have setbacks in business you just dont fold up the tent and go home. In fact you double down on your efforts. That is what we must do. We must infinancefy and continue to stay focused on Health Care Reform and tax reform. Neil democrats are offering a so