Tom cotton, ben sasse, john kasich and even, yes, mike pence, are quietly planning a run in 2020. Now, if youre watching this show on friday, neil ran through a number of accomplishments that the white house has been pointing to in its First Six Months whether it be job gains, stock market gains, all that kind of thing. So our question to follow up on that given that this article has been written, was or is the president being counted out way too early . To start us off, Charlie Gasparino, fox business correspondent, here in the studio from. The independent womens voice, heather higgins, also here many our new york studios, and are from the hill, editorinchief bob cusack from d. C. Heather, theres been so many articles written even during the campaign that its all over for donald trump, and although there have been moments where i think most of us would agree things have been messy during this [laughter] First Six Months you stay out of this gasparino [laughter] sorry, i just laughed. Connell president s been written off so many times, maybe the premise of this articles doing it again. This is actually intentional, and i am in the weird position of somebody on twitter actually toted this all up, im apparently one of only 27 people who actually predicted that trump would win in advance of this. And on that list of people who were actually working for his campaign. The numbers even smaller i was on the other side of that bet. People who are writing these articles and counting him out and saying all this is going on are the same people who have gotten it wrong every single time about whether or not what he says is going to sink his campaign or be a problem for him. Connell right. This is a tempest in the ea teapot. They cant teapot. They cant say that the economys doing badly, that hes not fulfilling his Campaign Promises because hes actually done a lot of them. Not legislatively connell right. They can say no big things in terms of health care and all of that is legitimate but its only six months, and he has to let Congress Work through its dysfunctionalty. Connell point taken, but the idea of people running against him, including the sitting Vice President. I took a lot of heat on social media connell you always do. I guess this was mild comparatively. Basically saying the markets are up because investors say netnet no matter which way you put it and i made this case to neil too, but he disagreed with me netnet trump is better than Hillary Clinton. Connell he creates a Better Business environment. You know, either way. Even if he does nothing, hes going to be better than the taxes, the regulations and all the other bad stuff that would occur under Hillary Clinton. That said, lets be real clear here. When you say these people, the people the reporter in the New York Times who did that story, i dont remember him being a prognosticator. Hes a reporter. Connell right. If you look at what he said in the story, hes pointing out, hes getting specific examples on why it looks like pence is covering his rear end and thinking possibly of a run. And he laid it all out. It was a pretty compelling read. He started a fundraising connell i want to ask bob about it just to get him into the conversation, and then well come back to heather. Bob, youre the d. C. Guy in the middle of all of this, and you know how things work down there. If thats true, i know the Vice President s pushed back so hard, but is that sod that someone so odd that someone behind the scenes, even a Vice President , would be preparing for the possibility that the sitting president maybe chooses not to run for reelection. What if that happens and hes not ready . Is that so odd . No, politicians always thinking years down the road. Pence would not be running against the president under this premise of the times story. Others, i think theres very little doubt that trump first of all, i think hes going to run for reelection. Michael bloomberg has said theres a 55 chance that trump would win reelection. But i do think trump will be primaried. It wont be, certainly, pence connell kasich or somebody like that. He never denied it. Heather was going to make a point. What was it . To clarify, these people was, indeed, a genrety about the editors generality about the editors at the New York Times are wanting to run stories showing republican discord, etc. And theyre doing that in part because they dont have stories about markets doing poorly to run instead. But larger point is everybody down in that swamp is a Political Animal outside of trump, right . And they are thinking about their longterm careers, and pence as his obligation is is thinking what happens if something happens and trump doesnt run. He needs to be prepared. The others are but thats the point of the story. And when you said messy, right . You said the Trump Administration thats a euphemism for the general dysfunction that we have here. Connell fair. And this is not good. By the way, theres no arguing with that. General kelly will tell you that. Connell thats why hes in the job. Thats fine. I disagree. Well, then i guess if there wasnt dysfunction, ryan Priebus Reince priebus would still be the chief of staff. Connell whats the point though . The point is this, mike in i guess obamas First Six Months, you did not hear of joe biden setting up exploratory committees and taking the overt steps that mike pence is taking. You just didnt hear it. Connell well, it was a different environment. Is that your point . Yeah. Theres no need to do that. This is a dysfunctional presidency. And before we attack this story, listen, i dont i beat up on the New York Times all the time. I agree theyre not giving him credit for the markets and and r the economy being better connell i want to play something neil said on friday in a second, but, bob, is that a function as charlie suggests, theres that newsweek cover, by the way, where they called trump the lazy boy. Thats bologna. Connell heres a little bit of a taste of what neil had to say about this cover of newsweek saying, hey, trumps lazy, essentially. Neil was to not happy with that take and gave his own take. Here it is. Neil its in a news magazine, and impressionable people who dont know anything about Mainstream Media bias might be led to the conclusion that the president is a total waste just like they might have been led to that impression in the First Six Months to one year of Ronald Reagans administration when the media was similarly harsh and saying he was a guaranteed onetermer. Just like they were similarly dismissive in the first year of abraham lincolns administration saying he was losing the war and didnt have a clue. I believe lincoln did okay, i believe Ronald Reagan did okay. It is way too soon to say whether donald trump will do okay and be okay. But for me, this kind of treatment not okay. Connell so all of you had a lot to say about all that. Ill just read a a few of these tweets that came into us, then well continue. K. M. Tweeting the real lazy boy is newsweek. The magazine cant spend its time covering all that the president of the United States has accomplished, so it makes a trash cover to sell. Then lori a lot of us that werent trumpsters are thrill with what hes getting done. Now, we did hear some like lois on facebook who said neil, come off it already. I saw you to two times friday, then again saturday thats all you could talk about. Hes not lazy, but hes crazy. And tammy that is one of the most outrageous lies ive seen in the media. Thats the one thing no one can say about trump, that trump is lazy. Bob, just use that as a way to come back to the exact point that charlie was making, making the biden kind of obama comparison versus pence and trump now. How do you see that . Is that a function of the media treating the Obama Presidency differently . In other words, the media being unfair to trump as it wasnt to obama or just the circumstances being far different then than they are now . I honestly think its both. I think the media the media had a rough 2016. We got it wrong, basically. We didnt try to answer the question whos going to win, and trump pulled off the shocker. But i also think too many in the media havent done a reflection of why they got it wrong. And number two, you know, were referees. Unless youre a columnist, you cant be antagonist you can. Connell so theyre missing, we havent done enough selfanalysis in terms of what are we missing . We dont know what were wrong about . Is that the point . People havent look ared internally . Yeah. One of the things, and personally when i got outside of the beltway, when i went to ohio two weeks before the election, i was like Hillary Clinton has no shot to win ohio. We have to get out of the beltway thinking. There was a group think that he had no chance, and that was wrong. Yeah. But lets also dial this in a different way. Newsweek has to sell magazines or get clicks, right . So what it did was one of the most outrageous things to get a click. It basically lied, because we all know hes not lazy connell a lot of things, but not lazy. So they lie, they exaggerate, they use hyperbole to get clicks because lets be real clear here, donald trump lost the popular vote. Theres a business reason why leftwing tv and leftwing media is doing this. And one of the reasons is because 50 of the population or a little 47 of the population voted against him. He only got, what, 43 of the vote . I cant remember connell its kind of a different discussion, because remember, theres a business reason why that covers out there, why msnbc is doing better, because there are a lot of people who dont like President Trump. Connell no, i mean, i guess. Your point, thats why the ratings are up in the farleft media. Go ahead, heather. Obviously, theres a business reason. And, actually, if one is a republican, one should hope that the meme continues that trump is ineffective and all the antagonism to him, because if youre a republican, its going to mean that the hard left continues to primary their own people k and it gives the republicans the better shot in 2018. It is, however, i think, missing what is going on through executive orders yes, i agree. Through regulatory changes particularly regulation. There are a lot of changes and keeping Campaign Promises. Remember, trump is going to run on i kept my Campaign Promises. Thats what you can predict about 2020 how about the wall . I do want to say [laughter] except for the wall. No, whatever he does, hell say he kept his campaign promise. He quoted something, he said Something Else to the mexican president. One of the things that is not analogous is biden was never the sort of person who was going to set up a Fundraising Committee and run for president. He was somebody who wanted to be anointed, pulled into it. Maybe. He certainly was not the sort of person who was going to go out and seek it, and there was to no assumption connell well, he wants to run. If trump decides for some Health Reason or whatever that he doesnt want to do it again, pence will be the logical next nominee. Connell well, you know who else needs a logical next nominee . The democrats. Weve never said whos the up and coming democrat whos going to thats the problem for the Democratic Party, you know . Thats the unfairness of the media coverage, i think. Its not that trump is, you know, its not unfair to do this story about pence thinking of running in four years. I mean, theres enough evidence there that you can clearly, you know, make that, those connections. Clearly, kasich is running and some of the others are probably running too. Whats unfair is what they leave out. They left out the fact that the markets and most sophisticated businessmen think this guy is better hands down connell so that brings up kind of a final and the Democratic Party. This is a party in dysfunction. Its so far left, its almost the guys look whos running the Democratic Party. This guy, perez connell running the dnc, but we dont know whos going to run for hes a quasisocialist connell tom perez is. Hes running the Democratic Party. Connell finish this off for us, so who do the democrats have . Weve been talking about the sitting president being primaried, so who do the democrats have, and do you think that theres a serious primary challenge at hand as a possibility . I know its a long way off for this president because even though his base support has gone down, its still fairly strong, right . Yeah. And i think trump will be primaried if he runs again, and thatll be the First Time Since buchanan took on bush and weakened him, honestly. On the democratic side, i think its going to be extremely nasty. Sanders runs again, warren runses, biden runs, kamala harris. The democrats have to worry about getting younger. I think they might need a fresh face because the party, whether its in congress or these people who are considering running, its old. And that usually doesnt work. But getting back to [inaudible conversations] their base is going to be one place, which is hard left, antitrump right. And the swing that theyre going to need is going to be going a lot of this is working. Okay. Right . And theyre going to have a big challenge on the left. I think theyre going to wind up getting their tail handed to them in 18, and thats going connell the democrats are, in the midterms . The democrats are, and thats going to connell real quick, charlie. The New York Times, does the New York Times play to that base as a business decision and we get such skewed coverage over the next two years . I mean, that is really where the business story is. They see an opportunity in leftwing media. And the New York Times is sort of starting to parrot that. Listen, theres a lot of great reporters there. Connell no, i understand your point in a way thats very overt, you know . I know republicans have hated them from time no, no, no. It is going to get worse before it gets better. Connell weve got to run. Heather, charlie, bob, appreciate it. Now, this leak crackdown weve been talking about so much, the media hunkering down on that because the question on, at the end of last week was would journalists be a target, maybe fear jail time themselves . We have a little bit of a clarification, i believe, on that. Then, big u. N. Win over north korea. Kim jong un now is promising retaliation of the worst kind, so well talk about that warning after a quick break. Well be right back. With some big news about type 2 diabetes. You have type 2 diabetes, right . Yes. So let me ask you this. How does diabetes affect your heart . It doesnt, does it . Actually, it does. Type 2 diabetes can make you twice as likely to die from a cardiovascular event, like a heart attack or stroke. And with Heart Disease, your risk is even higher. You didnt know that. No. Yeah. But, wait, theres good news for adults who have type 2 diabetes and Heart Disease. Jardiance is the only type 2 diabetes pill with a lifesaving cardiovascular benefit. 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One of the things we are doing is reviewing policies affecting media subpoenas. We respect the Important Role that the press plays and will give them respect, but it is not unlimited. They cannot place lives at risk with impunity. Are we dont prosecute journalists for doing their jobs. We look at the facts and circumstances of each case, and we determine whether somebodys committedded a crime. You dont consider the publishing of classified information as a crime. Well, chris, i dont think you can draw any general line like that. It depends upon the facts and circumstances. You know, generally speaking, reporters who publish information are not committing a crime, but there might be a circumstance where they do. Connell so that is the Deputy Attorney general, the second man speaking, Rod Rosenstein. Seemed to downplay the concern that the administration would look to lock up some journalists if they publish leaks. But to hear critics of the white house tell it, journalists should be fearing for their freedom after those comments on friday from the attorney general, Jeff Sessions. We bring in from the washington examiner, white house correspondent, sarah westwood. And from the Media Research center, dan gainor. So which side of this are you on, dan . I mean, where do you think the administration is heading, to sort of go after as weve seen in the past on both sides of the aisle journalists or just concentrate on the leakers . I think they clarified and said theyre going to concentrate on the leakers. It is possible that a journalist could reveal classified information that would put american lives in jeopardy or really harm national security. They might go after that journalist. But, by and large, what theyre talking about is fixing the leaks. And the leaks exist right now because of the press wants to sink this administration. Connell but sessions did say, i mean, he a talked about media subpoenas on friday. You think that is fair game though, the idea, dan, that journalists should at least be looked into for what they publish . As Chris Wallace was getting at with Rod Rosenstein, whats the crime here, the publishing or the leak . Media subpoenas gets a lot of reporters saying, uhoh, wait a second here. Well, you say it gets a lot of reporters saying that, but when the Obama Administration did it, nobody seemed to get upset. Connell they should though. No, i hear you, absolutely. I think people inside this News Organization did get upset. Your points well taken. The idea that it should be fair on both sides and you should be focusing on the information rather than that messenger, sarah, of that information . Whats your take . Obviously, this is a really complicated situation for the Trump Administration because they already have such a tense relationship with the press, and so many reporters are predisposed to believe that the Trump Administration wants to crack down on the free press. And so any move of that the department of justice makes that can be characterizedded as an effort to suppress the media, it will be presented that way to the public so that the Trump Administration, obviously, has to be careful how they go about this which is why what Rod Rosenstein did was so important on sunday. He clarified thats not the focus of the efforts. The focus of the efforts are to stop the leaks, are to enforce the laws about disclosing classified information and to simply review the 2015 guidelines the doj put out on media subpoenas. Dan is right, those guidelines came about as a result of the Obama Administration scandals, wiretapping Associated Press and fox News Reporters connell right. There was so much of a backlash that the doj then had to go back and issue these guidelines that limited its ability to subpoena reporters in order to track their sources. Now, the Justice Department is just saying theyre going to go back and look at whether those, that was a correct decision at time, whether the guidelines need to be updated. Everyone at Justice Department says they might not touch those guidelines, they might amend them. They dont know. Theyre just initiating that review. Connell its not even a hypothetical in this most recent story about the transcripts being leaked of the president s conversations very early in his administration with the leaders of mexico and australia. Now, whatever you think of what came out of those conversations, its almost irrelevant to a conversation like this, the idea that they did, dan, come out. That the conversation, you know, World Leaders were having with each other that they thought was private is not public. So when youre investigating that, should you be at all looking at Washington Post reporters and trying to get the information from them or focus on other ways of getting the information in terms of who had access to it and who was leaking it . I would think maybe theres some sort of an electronic trail that does not require a media subpoena. Isnt that fair . Yeah. I think thats a perfect example because its, while its injurious to the nation to have that kind of material leaked, it doesnt put us in major jeopardy. It doesnt put lives on the line or anything like that. So, of course, i think thats a circumstance where you would try to find the leakers. A lot of that conversation gets shared throughout the administration, and its also through the intel agencies. Connell right. So its difficult to narrow that down quickly. But i think thats where the administration should be focused. Again, because the Obama Administration so aggressively pursued the press and the press had this idea that the Obama Administration was favorable, yet eight of the thirteen espionage prosecutions came from obama. I dont think trump wants to replicate that. Hes already got enough of a war with the press. Connell all right. Final word on this, sarah. I hear what dans saying about the transcripts being leaked, but to me, that was kind of a big deal. Its tough to have an honest conversation, right, with a leader if you think, certainly, you know, that conversations going to be leaked to a newspaper or some kind of news outlet either. That, to me, is an important investigation, but whats your take . Exactly. There are farreaching diplomatic implications for a leak of that sort. We already know though that the government has the capability to track down leakers internally not relying on journallests. Look at the case of the young woman in georgia who was found looking backwards tracing her steps who printed out that information examining the copy of that document that was provided back to the government by the reporters. It was not done connell right. Surveilling those reporters. So we know the government has that ability, they can exercise it more aggressively. Thats what attorney general sessions is saying heir going to do. Connell thanks, guys, sarah, dan. Were going to move on to north korea, its a big story with these new sanctions. Well talk about them next. Were on to you, diabetes. Times up, insufficient prenatal care. And administrative paperwork. Your days of drowning people are numbered. Same goes for you, budget overruns. And rising costs, wipe that smile off your face. Were coming for you, too. For those who wont rest until the world is healthier, neither will we. Optum. How well gets done. Itwhats possible. Nk rethink the experience. Rethink your allergy pills. 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There will be a whole slew of cabinet officials who will come back and forth next two weeks to new jersey and new york, briefing president on all kinds of issues. Lets get down to north korea. You mentioned sanctions which the u. N. Security council is imposing on north korea. This includes a ban on north korea and exports of coal. It also will prohibit north korean laborers entering into joint ventures and working outside of north korea. It will cost the north korean economy Something Like a billion dollars in lost foreign revenue. Here is what u. N. Ambassador nikki haley said why it was time to do this. What we basically did was kicked them in the stomach, told them to stop, said well not put up with it anymore. The ball is in north koreas court. They have a big decision to make. They can respond pulling back, they will not be a part of this reckless activity anymore. Or they can see where it goes well continue to keep up the strength and activity to make sure we stop them. Reporter of course the north korean regime responded first saying unno circumstances would it negotiate in regards to nuclear arms and missile program. They also promised 1000 fold revenge saying that quote, were ready to retaliate with far bigger actions to make the u. S. Pay a price for its crime against our country and people. The rhetoric ramped up but the sanctions are ramping up too. Connell. Connell thanks, adam shapiro, there with the president in new jersey. Lets go to the American Defense international chairman, former South Carolina republican chairman van hipp who joins us now to talk a little bit about this. Van, it is interesting, as adam said, North Koreans through kim jongun say our he revenge will be thousands fold. How seriously do you and how seriously should we take their response, their threat . For years it was all rhetoric. You kind of told yourself, nothing will ever come of this. Now i think people are changing their tune a little bit on that. What is the real deal i think . Connell, were at 59th minute of 11th dealing with north korea and clock is ticking. I hats off to my fellow south carolinian nikki haley accomplished at the u. N. The toughest sanctions weve seen by the u. N. Security council. I would caution our viewers go back to a few years 2012. Weve seen that movie before with china. Back in 2012 they supported u. N. Security Council Sanctions against north korea while at the same time helping, having a chinese bank helping iranians launder money through a chinese bank for north korean and Nuclear Missile test. It comes to this. We know they have the Ballistic Missile capability. They have had this capability for some time. They have been in cahoots and in bed with the iranians sharing this technology back and forth. I think it all comes down to our intelligence on that miniaturized Nuclear Warhead. We know they have the design package, iranians have the designed package of infamous dr. A. Q. Khan from pakistan. How close are they to miniature rising that Nuclear Warhead so that icbm can accommodate it . Connell were told they are close. Closer than ever hitting parts of United States. If all that is true, what would it take . Would it be sanctions as tough as you say they are, back kim jongun in a corner . Would he react . I think it is different this time, i think chinese and russians came to the table and supported these sanctions this time i think they realize, connell, this president is a little different. This president means business. He has said, rex tillerson, secretary of state has said, we will not allow a nucleararmed north korea capable of striking the United States to exist. I think they realize this president means business. Connell does it already, just for a second, does it either already exist or inevitably exist no matter what the sanctions do . Maybe they could be already there or very close to being there hard to be stopped even if we hammer the economy . I dont know that the guy cares his people are starving in his country. There is no evidence to suggest that he he does, right . Our intelligence cant be 99 accurate. It has to be 100 accurate. Im very concerned open Source Intelligence tells us a few weeks ago, a couple Iranian Nuclear scientists were headed guess what . Pongyang. In the past when iranians and some in particular gone to pongyang we see Nuclear Tests follow a short time thereafter. So look, prior administrations both democrats and republicans kicked the can down the road on north korea. We are today at end of that road. I think connell politically right for nikki haley at the u. N. , we dont know if we can trust the chinese. Maybe the story we talked about a lot last week, the Trump Administration reportedly getting tougher on chinese when it comes to trade. Maybe that prompted them to get moving as well . Its a very big win. I think Ambassador Haley like me, a big fan of the great late president Ronald Reagan, he had a great phrase, trust by vary few. That is what we need to do with the chinese right now. Connell if they vote for this, you really need them over there, we really do as the president pointed out. Thats right. Connell we appreciate it, van. Van hipp, scary stuff at same time. Growing talk among democrats maybe they get themselves to the table when it comes to another one of our favorite or least favorite topics, tax reform. Does that mean tax cuts wont be as big as you thought if they are involved if this is bipartisan . Key member of Republican Leadership on that subject up next. 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 bburning of diabetic nerve pain these feet. Liked to style my dog as a kid. And were pumped to open my own salon. But i couldnt bear my diabetic nerve pain any longer. So i talked to my doctor and she prescribed lyrica. Lyrica may cause serious allergic reactions, suicidal thoughts or actions. 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Its kind of one of those things you cant even. You cant even thank somebody. People you dont know actually care about you. To protect what you love, call 1800adtcares connell you know apple, there is a report out, planning to introduce a smartwatch to thats capable of connecting with cellular networks. It should be a big deal because you no longer have to carry the iphone around with you, if you have this type of apple watch if it happens. 2. 8 million, number of apple watches solid worldwide in the Second Quarter as they stand now. Netflix story today, making firstever acquisition. Netflix doing buying of come big book publisher, millar world which published the kingsmen, secret service. They plan to turn the millarworld to turn into tv series and kids shows. Interesting for netflix. Republicans focusing on tax reform, theyre now on recess. Amid growing talk that democrats could be invited to the table. The House Republican conference chair, Kathy Mcmorris rogers. She joins us right now. Congresswoman, the idea of bringing democrats to the table is something that sound good, everybody wants it, lets be bipartisan but we talked so much about tax reform, if you start bringing democrats into the discussion, does that mean it will be watered down . Not watered down. Our goal on tax reform has always been to bring down tax rates, close loopholes, get our economy growing and allow people to keep more of their hardearned tax dollars. That will continue to be our goal. Weve been talking about this for month, for years, actually. Now it is time for action. Connell yeah. As were home in our districts, as i get around Eastern Washington i hear a lot of people asking about tax reform. People are anxious tore congress, the president to take action, a once in a Generation Opportunity to enact meaningful tax reform. Connell what do they want, do they want something to get done . Do they want you to swing for fences . What do people want . That would matter getting democrats involved versus going it alone. What do people tell you you . People are telling me they want both individual and Corporate Tax reform. For individuals it is, what weve been proposing is a collapsing of the tax rates down to three main brackets for. For Corporate Tax reform bringing down those tax rates, closing loopholes. Connell right. We have the highest Corporate Tax rate now in the world. As you think about businesses that are relocating their headquarters or being bought out by others around the world we want those businesses here in america. We want people to believe that they can start a business, grow a business, and do it right here in america, produce, manufacture, in a competitive way. That is why tax reform is so important. Connell we were showing some numbers that the president has proposed or administration has proposed. We expect more details after Congress Gets back i would think but just say for example, corporate rates down 35 down to 15, maybe you dont get down that far, three brackets, make it simple, three instead of seven, 10, 25, and 35, i could be reading this completely wrong i find it hard to believe you could get this done by end of this year and at all, were tired of watching how everything operated with regard to health care and you just look, boy, i dont know how they will do this. In terms of making anything bipartisan name a democrat that would work with this administration to be fair the president has enough trouble with his own party, nevertheless getting anybody else on board . I think youre ignoring that there has been a lot of work thats already been done and this is once a Generation Opportunity for tax reform. This is seen as something that is a mustdo, and doing the big things is never easy but we have in the house, we have been having hearings. Weve been working on this for years, and there has been a lot of work done in bipartisan way for many years. Weve been the ways and Means Committee has been Holding Hearings but also having working groups. 12 different working groups by different members of the ways and Means Committee, each one led by a republican and a democrat. So there has been a lot of bipartisan work. Connell corporate would have most support when you talk about bipartisan support . I think that is true. That there is, been more bipartisan support on the Corporate Tax reform side but we, this is time to do both. That we need both individual and connell what if you cant, congresswoman, with all due respect, what if you cant . Would you settle for dog something as opposed to striking out appears to be case for now with health care . Would you get something done . Im not ready to give up on that. I think this is our time. Theres a, there is a, there is intensity that this has to to be done both in the house and senate and administration. The house and senate has been working for weeks on this. Chairman ryan, chairman brady, gary coyne, steve mnuchin, treasury secretary, they have been meeting every week to hammer out an outline. You saw the speaker pulled away from the border adjustment tax in an effort to reach consensus how we move forward in the fall. Connell yes. There is a desire, there is a belief it is a mustdo, this is our time, this is our moment. Were Getting Started on this. Connell a lot of people are getting anxious to get you guys back to see if it actually does happen. Thank you, congresswoman, enjoy the break. Congresswoman Kathy Mcmorris rogers. Chicago is in the news today because of sanctuary cities. There is escalating legal battle involving the mayor, youre looking at him, rahm emanuel. What does it mean, crackdown on the cities, response from this mayor and showdown with Jeff Sessions and company after a quick break. On time. Tap one little bumper and up go your rates. What good is having insurance if you get punished for using it . For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Liberty mutual insurance. Poallergies . Reather. Stuffy nose . Cant sleep . Take that. A breathe right nasal strip instantly opens your nose up to 38 more than allergy medicine alone. Shut your mouth and say goodnight, mouthbreathers. Breathe right. So it only made sense to create a network that keeps up. Introducing Xfinity Mobile. It combines americas largest, most reliable 4g lte with the most wifi hotspots nationwide. Saving you money wherever you check your phone. Yeah, even there. 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. Your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. Connell so new york city mayor bill de blasio, would tax rich people in a way to have subway system fixed. Summer of hell left transit crippled with train delays and closures. Well talk more about that in the next hour of cavuto coast to coast. This whole idea from mayor de blasio. Another mayor in the news. Mayor of chicago, rahm emanuel, sued the federal government today over the sanctuary city crackdown. Chicago may be the first to bring a lawsuit, but im confident well not be the last because other cities knows these are false choices the trump Justice Department is asking us to make. Connell the Justice Department fired back at mayor mayor emanuel in the statement, in 2016 more chicago wants were murdered than in new york city and los angeles combined. Starerring that he is concerned with that figure instead of. Gop consultant, giana callwell is with us. Former obama 08 campaign, with is us. I believe youre out in l. A. Today. Youre a chick youre a chicago guy, right. Yes, i am. Connell tell me about your city and what you think of mayor of your hometown with this lawsuit . Well, let me Say Something that i think all three of us can agree on. Rahm emanuel is a failed mayor. Im sure there is going to be know fight. Will not agree on that. Not going to agree on that. We all know that is case. Connell wont give you a inch on anything. This lawsuit specifically with the sanctuary cities. Yeah. But so he is failed mayor but with this lawsuit, this disingenuous because chicagos mayor is using sanctuary cities and people of chicago as a pawn, political fight. One he continues to lose. He has no record of accomplishments in chicago in terms of better the city, pushing it forward. Look at every benchmark determine what is good mayor he gets an f. In addition to the violence in chicago completely out of hand. Memorial day weekend my younger brother in a car with two of his friends on south side of chicago, two individuals walked up to the car, riddled with 25 bullets. Thankfully my little brother lived. His best friend died in his arms. It is horrible situation. Rahm emanuel is not focusing on residents safety versus protecting people potentially criminals. Not everyone obviously but there is obviously some criminals in chicago that he is protecting. Connell let me ask andrew about this in the following way. If you try to simplify, look at some numbers in chicago, they are quite staggering, some murder numbers, violence numbers overall, andrew, look at arguments, whether rahm emanuel or anybody else makes, this is tough for them. They have to generally comes in and say here is the reason im not going to cooperate with the federal law. They have to make that case, right. People say, why, why arent you cooperating with what law states . It is terrible what is going on with crime in chicago. Im sorry to hear what gianas brother went through past memorial day, that does not make this sanctuary city effort by trump and laws that he is forth to be right. This is courageous act by rahm emanuel . Why . Connell whoa. Make my point, giano. Okay, go ahead. This courageous act. Why, when you look at constitutional law is the law is on Rahm Emanuels side. He is not allowed, federal government is not allowed to coerce him into following these policies. That is what happened with the aca and medicaid, and medicare. They had to make that choice for connell all getting worked out. Hold on one second, guys, right . It will all get worked out in the courts. But you didnt answer the question, how do you defend that argument . I will not defend the question. Connell go ahead, real quick. Connell, instead of focusing on how to reduce crime, instead of focusing on that, we are saying okay, were going, the federal government will give us less money. That is not fair. We should be focusing on, we should be focusing on how to reduce that number. That is not by taking away federal money. Connell go ahead. Andrew, it is so interesting, i thought you were going to come on with your coffee talking points, not happy hour talking points. You chosen to go by the way of happy hour talking points. Respond to quote, unquote courageous act by rahm emanuel i think it is blatantly false. To talk about the federal government pushing rahm emanuel, push being him in this direction it is called stick and carrot approach, where the federal government may have Grant Funding for particular localitity but is available, if you dont do x, y, z, you can not apply for that money. That is not coercion as you put it. Rahm emanuel in this way a gracious individual. He is failing the people of chicago on multiple fronts, especially black community in chicago. Between 18 and 24 connell guys. Cant talk at same time. Let him finish. Finish real quick. One sick, we have 30 seconds to. Africanamerican man between ages 18 and 24 in chicago, 47 are unemployed and out of school. Rahm emanuel should focus on those issues instead of trying to protect folks shouldnt be here anyway. Connell got a second, andrew. The Trump Administration is failing blacks and minorities in chicago. Theyre taking away resources could be used for local police to protect the streets. Connell well see. You know what . Were also, you know focused on taking away the american values. We, american values, americans came here for the opportunity and rahm emanuel, and rahm emanuel is trying to protect. Connell i think this is tough one for democrat to argue on particular issue how it comes across for no other reason. Thanks to both of you. Vice president in the news for this New York Times story. Whole speculation that maybe he is thinking about a run in 2020. Well talk more about that when we come back here on cavuto coast to coast. Its hour number two of cavuto coast to coast, im Connell Mcshane in for neil, and were on a number of stories this hour. But lets start with this one. The New York Times story. The paper saying President Trump could face a republican challenge in 2020, possibly even from his own Vice President mike pence. The vp spokesperson responding to all of that earlier. Its absurd and really what youve got here is speculation, conjecture, halftruth, masquerading as news on the front page of the never trump New York Times. The Vice President has been nothing but supportive. He is supportive of the president , and his singular focus is on making sure the president s agenda is active and that the president is reelected in 2020. Connell and the president himself seemed to respond. You read through this tweet. The failing New York Times, which made wrong predictions about me, including my big election win is totally inept, and he continues to say the base is far bigger than ever before. So the prediction of President Trumps collapse overstated as he talks about some of his big rallies there from campus reform. Org media director phillips is with us in this hour, democratic strategist margie is also here and from the daily caller, chris bedford. Let me start with you, chris. You know, its interesting. We were talking about this a little bit last hour, and theres all kinds of ways you can go on whether mike pence is really thinking about iran or kasich is or somebody is. But i tell you, it does seem like the white house was very, very upset to see that this story was even written, this speculation was even being had in the New York Times or anywhere else. Well, its not good speculation for the white house because if youre a sitting president whose primaried by his own party, typically, you lose. It does huge amounts of damage. Ronald reagan when he was running against jimmy carter, he would make run campaign ads, just repeating quotes from ted kennedy. Mike pence, though, is definitely not the villain here. People are kind of constructing that through rumors, and its probably coming from the fact that a lot of traditional republicans and conservatives in dc secretly wish that mike pence was president because hes someone who they feel like they could deal with more effectively than donald trump. But hes a loyal, loyal, soldier. He rose to the entire campaign, some conservators or critics of trump attacked him over and over again to say how could you be so loyal to trump. And he has never shown at any point in his career that he would stab his boss in the back. Whats interesting about that is going back to 1980 to jimmy carter while the republicans had Ronald Reagan waiting to run in that race, and hes obviously a strong candidate and became president. Served two terms. I dont know that the democrats have somebody waiting in the wings this time because thats the other part of the story that doesnt get talked about. I know this is all hypotheticallies. Were all waiting on this. Yeah. I dont think there is a clear frontrunner right now. Obviously, we have quite some time to go. But on the mike pence point, i think its a smart strategy because there are has been a lot of uneasiness and unsteadiness in this presidency. Theres been talk of impeachment. Theres divide in the Republican Party. Absolutely hes out fundraising. And he has to also notice since things have gotten tense with trump, you havent seen mike pence standing near him, around him, talking about him in the press. Hes been keeping a very safe distance, and i think, you know, look, if he did end up in the white house, him having strong relationships with other party members, the Republican Party and democrats would be absolutely paramount. And having a campaign behind him. So i dont think these are unreasonable. Connell might not be that crazy if its true a politician, even sitting Vice President , but certainly these other people mentioned john kasich or any of these guys thinking about positioning themselves to run. Or not everything collapsed for the president but to say he decided not to run for some reason. Exactly. He said that hes been saying i dont really enjoy this that much. Like, hes been talking about. Connell well, i dont know. The other thing to be fair to the sitting president as it stands, and we talked about this cabinet a little bit earlier. As crazy as some things seem on certain days and, you know, we went through the Anthony Scaramucci stuff, whatever it may be. And there have been days where things just seem, like, boy, whats going on here . There are other times if you take a step back and stock markets at a record high, some of these regulations that have been rolled back, many people that we speak to have created a Better Business environment. That this is only six months in and not everything is a disaster; right . Were putting up some, quote, unquote, accomplishments under the president. Many are business related. A Better Business environment, yet theyre talking about primarying him. What do you make of that . I think its important to remember whos pushing these claims and if they are, in fact, fantasy, whats the narrative behind them . So many of the critics pushing this idea in the white house on the Republican Party, they would make it seem that america is teetering on the edge of catastrophe, and theyre ignoring the good things that President Trump is doing. The million jobs that have been created since he has taken office. So i think a lot of this American People have trouble ascertaining whats true and whats not because they know that the liberal media and the left have already pretty much made up their mind about how theyre going to cover President Trumps administration. So its tough for them to see whats a big deal and whatnot. Connell that may be true, but also chris made a point is that that might not be all thats to it; right . The republican establishment may be as big, if not a larger issue for this president than the liberal media and the left. We knew the liberal media and the left would be against a republican president. Granted maybe its more so this time than in the past. Even if all of that is true, theres a lot of people in his own party that are even not comfortable or worse than that with this president. The entire time. If you go back to when he was nominated at the rnc out in ohio, there were people who were plotting these kind of fantastic plots to have him remove and have him not get the nomination, give it to ted cruz, give it to john kasich. Not a day in washington goes by. Connell this Never Trump Movement is behind more than everything else. Is that what youre saying . Thats the people who im hearing these mike pence things from a lot. Mike pence is extremely popular from both conservatives and with establishment republicans. But i hear his name come up almost daily. Names i dont hear come up almost daily as a primary challenge people like ben sasse or john kasich. I havent heard any words from that. But if you see mike pence, thats coming from the never trump crowd. Connell interesting. Marjorie, let me go back to the democrats. There are signs that theyre starting to get worried within the Democratic Party if you read some of the articles, including this one from politico about overplaying their political hand when it comes to russia. And not focusing enough on the agenda. And thats kind of what politico says. Democrats fear the russia probe blow backs. What do you think of those kind of political wins that for all of this talk every day of the week, theres a lead story in some publication or another about the russia investigation and th the president s approval generating has gone down whatever it has gone down to. And maybe there is kind of a fatigue setting in that the democrats should be finding Something Else to talk about, other than russia. At least and especially if nothing ever comes of it of substance. Right. Well, and money always talks. I mean, in every election when it what it comes down to is how are people feeling about the economy . About the security of their jobs and how that relates to their pocketbooks . So absolutely the economic messages are going to be fundamental for democrats, and they do need to figure out what their identity is around that. What they stand for related to that. And its an interesting time because we talk about a lot of the policies that trump is, you know, pulling back on or helping businesses, but theyre also in some cases hurting the very people who were his supporters like the tpp work around that happened in the un today. That will be a problem because its going to affect the manufacturing and labor stuff. Connell be more specific on that. Because youre going to think the best strategy is an economic one. Because it would seem. Tell me what it is and these guys can react. Well, its always economic. Rapport democrat and whos doing a better job of communicating what that means, whos impacted by, you know, basically policies, what it means to money in their pocket and what it monies, you know, in terms of, you know, culture. And the Democratic Party traditionally has been a very big tent. And, unfortunately, that means trying to play to everybodys different belief systems. What we know is that the numbers look different when it comes to who turns out to vote. While minerals are big supporters of democrats, they dont show up at the polls. And the people that do are a lot of that older generation who typically learn lean more conservative. Connell because i was making the other side of it from President Trumps point of view, i dont think i would tweet about anything or talk about anything other than the current economic conditions. The jobs report we had on friday, the record high for the stock market. I mean, youve got to be a little careful. That could turn around in a heartbeat. If the democrats want to use the economy as a measuring stick for how people should vote, republicans are going to gain an even bigger majority in the midterms in 2010. I think people are looking around, seeing the confidence in business, theyre seeing the stock market break records every week. And go ahead. I think every time the democrat spends a week talking about russia, theyre getting closer and closer to handing the election in the midterms in 2020 back to republicans. What percent of americans view russia as the view . The other 94 say talking about more is more important. Economics does go beyond jobs, though. You have to think of it in the context of health care. What Health Care Means to a family. What it means to different types of jobs. What it means on immigration because immigration is fundamental for a lot of the tech jobs, for example, or migrant farm workers. How that impacts the farming community. So economics isnt just as simple as jobs numbers. It goes beyond that. Connell so as a final point to bring it all together. If youre the democrats putting together a strategy just in this kind of hypothetical scenario, whats the best place to go after it . Because in theory, a president with a approval generating in the 30s thats what were dealing with should be fairly to beat, but maybe not. Well, you would think so. And a lot of the polls that weve seen arent that great because we dont know whos actually a voter, who has changed. I got a chance to look at some polls just recently that have been done over the last six months and there are has been a sevenpoint drop among people who are strongly, strongly favorable of donald trump. I think thats a constant barrage and republicans failure to pass obamacare repeal. But theyre in trouble and if the democrats arent talking about jobs, which they got slammed in in this last election. If they dont learn any of these lessons from past election and go for more populous things, the guys many michigan, theyre not going to vote for them. The guys in pennsylvania are not going to come out and vote for democrats because they think Jeff Sessions is a russian agent. Its not going to work. Connell it may not and however much trouble the president appears to be in. Were going to move on to north korea with these threats from the North Koreans again that they may actually use Nuclear Weapons against the United States if provoked. The question then i guess is whether or not these sanctions over the weekend, you know, that were passed in the un and the Security Council, does that be provoked . And did President Trump keep china in check with some sort of threat that worked . Well explain after a quick break. Dont go away where to get in. Where to get out. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Attention homeowners age 62 and older. Dr. Ben carson, the secretary of housing and urban development recently affirmed his commitment to the reverse mortgage program. 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Com introducing Xfinity Mobile. A new kind of network designed to save you money. North korea now threatening retaliation for these new sanctions. China signed onto them over the weekend after word President Trump is actually planning a crackdown on chinese trade. So did that help in terms of getting china onboard . Swiss america chairman craig smith is with us. Smart trade pro founder. Dr barton is also with us. What do you think of that . All of a sudden were going to see a new President Trump whos back to the future, back to the campaign talk. Im going to get tough with you, china, when it comes to trade. Do you think it helped . Well, im not sure, connell. But ive got to tell you, its interesting how he called for this investigation and the next thing you know the chinese and the russians are both at the table signing these agreements for the sanctions. I think china was saying that they were going to crack down, but they really have let north korea do whatever they want. And i think the big issue here we have to keep in mind that kim jongun and his father are willing to allow millions of people starve in north korea, if thats what they have to do to get to their end goal. And the 800mile border with china could present a real problem. Because that part of china is not a rich part of china. Its a very poor part. So there are a lot of moving pieces here. I suspect hes going to get china to cooperate with him. Its just a question will they really knuckle down this time . To craigs point you do have a leader in north korea who doesnt operate at the same level that all of us do and is willing to just let his people suffer and, yeah, youre saying youre doing all of this damage to the economy and the guy doesnt care and, in fact, maybe even more provoked by that. Maybe were having a are we even close to a point where were having a serious talk about the real threat . Not the rhetoric, the real threat of Nuclear Weapons being used . Well, economic sanctions historically takes some time and sometimes lots of time to work through the system. So if were trying to stop the immediate threat of their Missile Development program, that wont just wont work in and of itself. What the hope is and the secretary of state just said that we hope this will bring them to the table in a manner matter of months before things really start to work through the north korean economy. They want to see fewer or no more tests. They want to see some of these things, and theyre trying to force that hand before the people of north korea really do get hurt by this. Connell right so if they are in a position, craig, where they kind of look at this, and they know that kind of backed into a corner, they you know, kim jongun, they being north korea. And now theyre more capable than they ever have been before, at least thats what weve been led to believe that somehow a missile could get with a Nuclear Warhead either now or in the future to the mainland. Do you think no matter what china says, its a risk that this guy actually acts upon at this time if hes capable . You know, its so hard to predict the actions of the madman. Dr is it right, you know . These sanctions are going to take some time to work, and im not sure that we have time. Thats why i like the talk out of rex tillerson. Hes saying, hey, were not talking about you coming to the table 30 days now after. Hes saying, no, we want you to stop now, and then well start talking. And i quite frankly, nobodys going to like to hear this. But and, look, i dont want to go to war any more than anybody else does. But i think the only thing thats really going to stop north korea is quite frankly an attack on their facilities to disable them or maybe we can come up with a virus like happened in iran where we can slow the whole process down. Connell think about that for a second. You say attack on facilities. Not that its an authority. But the economist magazine, dr last week went through that as kind of a hypothetical, and i think thats how it started with we get to the point where we dont know what else to do, and we do initiate an attack on their facilities. One thing leads to another. Next thing you know, the guy does actually fire off a missile that he has hidden in some mountain somewhere, slips through the cracks and hits an american base somewhere or hits one of our allies somewhere and then, you know, you cant even talk about how damaging that would be. We dont want to to talk about how crazy that would be. It would be nuclear war. No. And thats the real problem. Craigs right. When youre dealing with someone that just has clearly shown over and over again that they dont use normal louis norm logic. Even if its lots of strike from the international community, they in korea and the we hope that china can exert some of that economic and political influence. Thats the best solution, really. Connell that he doesnt feel cornered, like, forget it, im dead anyway. Theres nothing i can do about this, and i may as well fire off whatever i have left, which is the scary of all scenarios. Also, keep in mind, connell, we do have the fad system thats working rather well. We do have defenses in that part of the region. So just to think he can launch a Nuclear Strike on us, theres no indication that he could put a nucleartipped warhead. Connell he couldnt get it through. Thats obviously the hope and a fair point. Thank you, and well wrap it up on that note, craig and dr. Scary times. Now, the state department saying that the gains weve made against isis still have started to dramatically accelerate, which would be obviously, good news. And theyve done so under President Trump 30 of the territory reclaimed from isis has been won, according to the state department, over the past six months. So would those metrics, the war against isis is actually to use their terms, accelerating. At the moment, will at t spin off cnn as part of a time warner deal . Youve maybe heard that before. Well, if you did, you probably heard it from Charlie Gasparino. He was the first to break that, and he has a new development on it. Coming up next when you have something you love, you want to protect it. At legalzoom, our network of attorneys can help you every step of the way. With an estate plan including wills or a living trust that grows along with you and your family. Legalzoom. Legal help is here. Poallergies . Reather. Stuffy nose . Cant sleep . Take that. A breathe right nasal strip instantly opens your nose up to 38 more than allergy medicine alone. Shut your mouth and say goodnight, mouthbreathers. Breathe right. Connell a pretty good stat, 73 of the s s p 500 companies so far this he didnt season have beat analyst estimates. 73 . In the meantime the dow today is up again. Not a ton. Up 20. So its on pace now for its ninth Straight Record close, well above 22,000. Nasdaq, though, hasnt hit a record since the 20th of july. You can look at that. Still less than 1 away. Those are the markets. We have reports now in the meantime that at t is considering a sale of cnn. Post a time warner merger. However, as you might suspect, our own Charlie Gasparino way ahead of this back in january. Watch. You may see what bankers are saying is a potential spinoff of cnn to make this deal go by. That there is a lot of talk about that and there will be buyers. We shall point out that cbs in the past has expressed some interest in buying cnn, if that became an issue with other potential deals. Connell here to talk more about that. Charlie gasparino. Do you ever get weird talking about yourself on tv . When i see myself sweat, yes. [laughter] connell i was going to say. Youre not the only one. Is it going to happen . Whats the latest on this . I dont know. And heres why. There are clearly people in the Trump Administration, people like steve bannon, Child Support to either kill this deal or put on you know, steve bannon is his adviser and who has been very critical of cnns coverage internally, as has the president who wants as a condition of this merger. You dont want to kill the merger. They claim too much concentration of power with at ts distribution plus the programming might of time warner, which includes cnn. I think its too much power and too much power located in one company. So they either want to kill it or make one of the conditions pretty onerous like spinning off cnn. You have to weigh it there. And bannon does have the ear of the president. Thats one end. Counterbalance it, in particular if you look into arbitrage this, which means play this stock. Connell no, i know. Scaramucci used it in his conference. Although he meant delta, not arbitrage. He misused the term. Connell my mistake. But the other side of the story is this you have pretty much three market types in the various regulatory agencies. The fcc, the Justice Department antitrust division that has to approve this who believe that this merger is pretty sound on antitrust basis, and theyre more conservative free market types, so they have its a much higher bar or threshold to get them to kill the deal, which is to force the change. And those people are very powerful in the administration. And as we know, the Trump Administration is now under a lot of pressure for not having the executive branch medal with the Justice Department. And the ultimate decision here is made with the Justice Departments antitrust decision. So you have to balance those two out. It looks like the antitrust division will probably approve this. But you have the political guys on this side saying dont do it and force a major condition for the approval of the merger. Connell so what if it happens . Say the merger goes through; right . And is there interest in cnn . I think at ts interested in keeping them. Cnn makes a few bucks, they give them a lot of ther there ithere is a up to owning a cable news network. Connell will someone make a bid . If they want to sell it . I dont think theres a shortage of buyers right now. Cbs has expressed cnn in the past. Connell theres been talks for years about both of them. And my producer interviewed them at the sun valley, and just so you know, he has no potential he doesnt see any big deals coming from cbs. But he also thought that this deal, he mentioned this to brian as well, would go through intact. So, you know, the real the reality is if this doesnt go through intact, if they have to spin off cnn, i think there will be buyers. I think cbs is a logical buyer of it. You know, dont put it dont put past a tech companys buying it. The late, great jimmy lee. One of the greatest Investment Bankers ever. Said how tech like google was interested in time warner back then. They have tons of cash, theyre looking to expand into content. Dont put it it is a possibility that google could guy cnn. You could see Something Like that. Connell wow. And could you just imagine . Connell all kinds of other issues. But that is interesting. Jimmy told me that. And we should point out jimmy died about two years ago. He was the best media banker in the country. And he actually predicted that time warner would be bought. He didnt think news corps would buy it. He thought there was too much institutional opposition to that inside time warner, melting he actually thought a tech company or something or obviously a Distribution Company like at t would make a move. At t made the move. Connell at t did make the move. Well follow it. A broken clock. Im once once a day. Connell they are calling it here in new york, actually, the governor came up with this. Theyre calling it the summer of hell in new york city for commuters. Now, as i said, the governor coined the term but the mayor has a fix that could cause a little bit of hell for rich people. Well explain that after a quick break connell breaking news on health care now, coming in from anthem, the Health Care Company set to withdraw from nevadas individual Health Market next year in 2018. So its already left california, indiana, wisconsin, and ohio. Now, i add nevada to that list. Were talking about the summer of hell here in new york city a few minutes ago about how now the mayor bill de blasio wants to tax rich people. Top 1 in order to pay for fixing the subways. The summer of hell is a reference to the problems that commuters have been experiencing. So what does this do . New york city counsel joe is here. Good to see you, joe. Good to see you. Thank you. Connell thats the whole idea. You want to take money, im sure this is politically popular because you just say, hey, lets take the money from them. This is bill de blasios one trick in his bag of tricks that he seems to resort for everything. Whether its weather in new york city or prek, he said lets tax the rich. He tried this earlier this year with a mansion tax, he tried this in 14 with the nearly identical new york city tax. Hes going with the same tactics and expecting a different result. So this is probably not going to happen. Connell the problem just theoretically on it, there are a lot of rich people in new york, obviously. Some of the richest people in the world live in new york city. Youve got for the most part them to stay here; right . If youre the leader of the city. You want them to do business here and hire people here. Sure. And where bill de blasio gets credit is this is a very vibrant city of a lot of people want to come here but a lot of these people that are here are wealthy that would be subject to this tax, and they are economically mobile. We have the best restaurants. People are always going to want to come here and live here. But when you give people a ridiculously high tax reason to leave, theyre going to go down south for Better Weather and for better financial climates. Connell you cant always im from here, and im sure you are too and instinctively you say this is the best city in the world, and that may be true in our minds, but you cant rest on that forever because a lot of people have and all of a sudden something pops up, im going to move to north carolina, texas, whatever. I dont want to pay this anymore. Im sick of it. And one million new yorkers have left this city since 2010. Just last year alone, almost 200,000 people have left new york state. These are people, again, migrating for economic purposes. Not simply because they prefer the weather in another state. What this mayor is doing is just trying to kick the political football back to governor cuomo. The truth of the matter is that the mayor of the city doesnt have the ability to do this tax. He doesnt. Connell and, by the way, they dont like each other. Outside of new york may not realize both democrats cant stand each other. This is not the situation where the mayor and the governor are cooperating on something they really should be cooperating on. Connell right . The governor has been so eager to cut the ribbon on shiny things that take credit after saving the system after new york sandy. Now that things have gotten bad, he still has to own it 100 . Connell the mta, the state agency. It does bring up the point it would be nice to fix that subway system a little bit. Any better ideas topping the top 1 . How do you pay for Something Like that . Lets start with this. The mta has a bigger budget than lithuania. Its a question of how do you spend that. Youve seen the Capital Projects that have been exposed. The Railroad Line into Grand Central station. This is a product that has been delayed and cost overrun of 800 million. Its absurd. Even relatively mundane projects have been overbudget by 400 million. So the nta has to figure out how theyre spending the money before we get into real solutions. Real solutions could be taxing the east river bridges. Theres no rhyme or reason as to why someone crosses the brooklyn tunnel has to pay 8. 50 and someone who crosses the bridge right next to it has to pay nothing. Why theres no 2017 solution for this is beyond me. Connell everybody watching in ohio is, like, enough of this. We feel partiality about it. We need better subway. We dont want to put up with it for a few minutes. Good to see you, joe. A thing that everybody cares about is tax reform debate we keep having every day; right . And the focus for republicans after the recess, i think will be squarely on taxes. The House Republican conference chair Kathy Mcmorris rodgers is with us. As a matter of fact, in the last hour, shears what she said. What if you cant . Would you settle for just doing something as opposed to just striking out . Im not ready to give up on that. I think that this is our time. Theres an intensity that this has to be done both in the house and the senate and the administration. Okay. From usa today. You know, thats the right answer in fairness to the congresswoman because when youre starting a negotiation, the last thing you want to say is would you settle for doing something small . You probably should say we should we want to get as much done as we possibly can. Im not going to give in now. So i get that. Thats the right answer. But is it a realistic one . You know, we just have to see. I mean, i think she has to say that for negotiations and also for the voters who expect that the fact that theres republicans in the house, senate, and white house, they expect things to be moving, and theyre not. You know, health care was kind of this massive failure, so they need to promise that theyll get tax reform done and go full speed ahead on it. Connell i told her this too when she was on. I would be really surprised if they got it done. As i was saying to the congresswoman, we would be so skewed watching the last few months, which is nothing in terms of health care that you just say i cant say it. Anybody working with this president from the other side of the aisle or some on his own Party Working with him and republicans coming together. They have the votes, technically, but its just hard to believe that theyre going to get it done. Well, were seeing the party so fractured; right . Its easy to be united as the party of known. Weve seen democrats like that. Bernie sanders and joe manchin very different. But they can be both be no. But its la harder to be yes on something and agree. Theres conservatives in the Republican Party, there are moderates, and they all have Different Things they want. And its going to be hard, and theyre already, you know, in the senate basically assuming democrats arent going to get onboard, so theyre using reconciliation, which is where you can pass something with 51 votes. So it will make it easier to pass but already theyre kind of alienating democrats who are frustrated that, again, same as health care, theyre not being brought to the table. Connell yeah, that whole reconciliation thing didnt work out well. We know that should give politically but you and i can have a different discussion. Are you picking to anybody youre speaking to there in washington about conversations that are happening about going smaller as opposed to trying to do a huge tax reform package . And if so, what are they talking about . Individual rates, corporate rates, whats being discussed . You know, right now, they really are saying that theyre going big. I mean, theyre saying they would like democrats to get onboard. But that might not happen. So were doing reconciliation. So they are not really open to going small, and i think thats the same thing that shes saying because the voter wants them to go big. There could be very well conversations behind the scenes. But right now, theyre saying we have to do this. But reality too is the timeline. So theyre gone the rest of this month. Connell getting it by the end of the year is tough. And the same old getting it in the Midterm Election year is tougher. Thats what im saying. You cant see it. Its just so hard to imagine it happening. Yeah. And it might be Health Care Going small. They couldnt get the repeal, so now were seeing patty murray who are senators republican and democrat saying okay. Well, lets fix this in the meantime and buy us some time. You might see Something Like that with tax reform. But they need a win. I mean, they went into august recess with really nothing. The only thing that has passed the house, senate, and then signed by the president. The only big piece of legislation is a bill that limits trumps power to russian sanctions. So the president was not happy about that. That is not his agenda. So they need some agenda items. Connell absolutely. And the white house is right to point out that certain things are getting done, the rolling back of religions and a more positive business environment. Supreme court, but youre right. They need a big legislative win, so well see. Thanks. Good to talk to you. Another thing that hanging over all of this is the Robert Mueller investigation reportedly used not one but two or more grand juries in this whole russia probe. The latest on that coming up net [vo] progress is seizing the moment. Your summer moment awaits you now that the summer of audi sales event is here. Audi will cover your first months lease payment on select models during the summer of audi sales event. 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. 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. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. So weve had the reports now that Robert Mueller is using multiple grand juries in the russia investigation. So it brings up the larger question here on this monday. Where is it all going . Former whitewater i want counsel with us. Good to see you. Thank you. So if you have two or three grand juries, some people say this is obviously it has been picked up a level. And others saying this is routine until you gather evidence. What do you think . Its hard to tell whether its just routine but even basic things, like, for example, if you were investigating Michael Flynn, and you had a preexisting investigation with a grand jury in virginia and during the course of that investigation and as an example, youve uncovered false statements to the fbi and statements were taken in washington, d. C. You would have to submit that evidence to a connell it has to be in dc. It would have to be venue youd there as opposed to eastern virginia and alexandria. So the fact that theres another grand jury limited in that hypothetical doesnt suggest much more than youre going through the ordinary course of doing an investigation and where things naturally should go, thats where they go. What about them going in a place where they wouldnt ordinarily naturally go, in other words, outside of the scope of just russia. Will see been so much talk that this following the money, various articles written about that to the trump finances and what have you. What whats the kind of latitude . Hard to know what to make of that. I know that the special counsel inherited what was the beginnings of an investigation in new york. So theres that sort of piece of it. You dont know where exactly ultimately that will go. Connell but looking into russia and finds Something Else thats completely unrelated, but its kind of a business dealing that needs to be looked into, he can look into it. He can. Although prudence would dictate, and it seemed to be seconded this weekend by Rod Rosenstein, who appeared to the Fox News Channel to suggest, look, you know, if its within his mandate, which is to say things directly related to the russia investigation, hell go on and do that, which is within his mandate. Along the way if he uncovers other things that at least arguably are not within his mandate, then he goes back before the Deputy Attorney general. And he has to go back to Rod Rosenstein to examine for jurisdiction, which is hes certainly capable of doing and rod is likely to grant him that expansive authority. Right. Thats just normal. Thats almost like a rubber stamp; right . Well, i dont know if its a rubber stamp. Ultimately, Rod Rosenstein does control the scope of the vegetation of. But you know, what it does represent clearly is that if he were to decide not to allow bob mueller, it would naturally give rise to the question, well, whos going to investigate this . It would otherwise be the Justice Department and that presents a political issue, obviously one that would be disclosed. And there would be a debate about where appropriately that investigation should be pursued. Connell i know its tough because were on the outside, both of us are on the outside looking in. But you obviously have expertise in this area. So from what youve seen, is there anything that jumps out at you as the most series of allegations or the parts of the investigation, it the don jr. Meeting or the Michael Flynn investigation in virginia. I really think its too early to be able to gauge that and tell. I mean, i think the more significant thing that you can read into all of this is that hes assembled a staff, including a staff of lawyers. 16 by the latest count sufficient to have clusters of prosecutors and agents do various parts of the investigation simultaneously. And the second thing is that it indicates because hes not only brought over people from within the department to be detailed to that investigation but also people outside. Presumably they wouldnt have made a commitment to the investigation unless they expected and have been told to expect that the investigation would last well into 2018. And i think thats what we know. In other words, this is not going to be over in 30, 60, or 90 days. And thats a political calculation that the administration has to make because they have to know youre trying to push the taxes, youre trying to do infrastructure, whatever it is. This is there; right . Its not going anywhere. I think the earliest you could see this wrapping up. Well, my hope is having learned lessons from the whitewater era and even before that this investigation could be responsibly and swiftly concluded with the major prosecutorial decisions that need to be made. Connell the lesson was. Well, before the Midterm Elections. Connell the lesson was what . Should have done it sooner . Well, should have done it sooner because it doesnt get better with age. You get sort of 18 months to two years to kind of either show something for what youve done or not. Otherwise, the push patience has been exhausted. Connell this is kind of weird. Why does something why does it take that long . Whats the most painstaking part of this process . Because theyre saying jeez, lets look into it, talk to the people we need and draw some sort of conclusion. But every lawyer says this kind of thing takes forever. Why . Well, part of it is its one thing to talk about records and documents and issuing subpoenas for those kinds of things. Another thing putting people before the grand jury. Issues arise along the way about whether or not someone will go voluntarily or one who asserts their fifth amendment privilege or whether to compel testimony and the consequences of that also prosecuting at lower levels in the hopes of turning somebody as a cooperating witness in favor of, you know, gathering further evidence. That process is timeconsuming. Now, i dont know whether any of those things will be appropriate in this investigation. You have to sort of decide if theres some there initially to warranty taking the big prosecutorial steps. But if youre talking about prosecuting lower level people in order to get to higher level people, thats a timeconsuming process, and thats frankly what belabored the star investigation and other investigations during the clinton era is that, you know, it went on for some time and all of a sudden youre not talking months any longer. Youre talking years. Connell its just going to go on for some time too. But hopefully not that long. Thank you for being on. Thank you for having me. Connell neils take friday on that newsweek cover, your thoughts on that coming up next. 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. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Fast connections everywhere. Think your all. 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. Connell so on the show friday many of you may have seen this, look at neil, talks with his hands. Neil ranted, he certainly did. You all reacted. Here is part of his take on that newsweek cover from friday, watch. It is way too soon to say whether donald trump will do okay and be okay but for me, this kind of treatment not okay. And it will confound everything and everyone if it is accepted as fact. And why do i fear it could be accepted as fact . Because it was in a magazine called newsweek you know what it should be called . News that is very weak. You get it. How i, all right. Im done. And i havent even had lunch which could explain. But i wanted you to be aware, folks this aint fair, this aint right, not remotely fair or remotely balanced. Connell neil on the way to vacation for the newsweek, lazy boy cover. He has better work ethic than most. What is our media trying to do. This is adam on twitter writing in, trump may be a lot of things, lazy not one of them. Who in the hell is newsweek trying to kid. Calm down, adam. Tina tweets, i need the cover with two exclamation points. It will make history when he is impeached to pass on to my grandkids, tell this part of american history. Milo, i wish i could subscribe to newsweek so i could unsubscribe. Tell them to shove their letter where the sun doesnt shine. Near the armpit area. Not funny. That is it for the coast to coast. Pass it on to the great trish regan. Trish thanks so much, connell. North korea threatening revenge, a thousandfold retaliation against the United States after the u. N. Voted to impose new sanctions against the rogue state after the latest missile lawn. Im trish regan. Welcome to the he intelligence report. U. N. Ambassador Nikki Haley Says it is time for north korea to realize we are not playing anymore. Congress back at home for august recess. Constituents are not rolling up the welcome wagon
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