Obamacare and keep the government open plan includes new domestic spending, all of this contrary to President Trumps election promises and the Republican Party is still divided on taxes and theyre still several votes short of agreement on Health Care Reform. Despite winning the house, the senate, the white house, the republicans cannot get anything done. Thats the current state of politics. On the money front, its all about these guys, the fabulous five. They are sucking in all the money. Theyre all at record highs while the rest of the market remains fairly flat and today, speculation what apple will do with that, a quarter trillion mountain of cash. Thats all there is speculation with a shareholder dividend. Divisive politics and really big money, thats what we have for you today. Varney company is about to begin. Thats america today, more than 40 arrests were made on may day, that was yesterday, of course. Tens of thousands across the country took part in violent antitrump demonstrations. Meanwhile, Democrat NationalCommittee Chair tom perez spoke at an immigrant and workers rally outside the white house, saying, quote, no human being is illegal. Ill guarantee weve got more on that coming up for you. A live look at capitol hill cause 30 minutes from now, United Airlines chief oscar munoz will be grilled about that dragging incident. Were on that one. Some say that the president caved on the spending bill and its a win for the democrats. Come in a former reagan economist art laffer. Thats the way i phrased it. Its a cave for the president and a win for the democrats. Are you going to take me on on that. No, its a win for the democrats. Defending their programs and just enough votes to be able to do that and with the republicans not united, theres no way of sacking the liberal city, if you will, by the budget. But as time goes on, stuart, well see how it works out. I dont think this is going to be the longrun solution. Stuart i understand that, but its a very bad sign for the early going. Ive got another one for you though, art. President trump says hell consider a gas tax, raising the federal tax on it was to help pay for infrastructure spending. What do you say, i dont think you like that either. Well, you know, ive written a lot on this, stuart, im all for a gas tax if we could reduce other taxes by equal or more amounts. A gas tax is one of the least damaging taxes. All taxes are bad, some are worse than others. The gas tax is one of the least bad taxes and we could if we could use the proceeds to reduce other taxes like income action Corporate Tax, i would be with that every day of the week and twice on sunday and i think, stuart, this is the api ture, and the democrats, all they want is a carbon tax. Would i love to see the growth agenda and nothing is more important in my mind. Stuart thats my point. Because the Republican Party is so divided, you cant go straight forward and get the tax cuts, no, youve got to balance it out with a consumption tax so you can bring some democrats in because you dont have a united Republican Party. Thats true, thats what we had to do in 1981, too with our tax bill when we have graham lotta and we got lots of democrats compromising letting them be part of it. I think the gas tax increase, if matched by more than that in the income tax cut or corporate profits tax will be a great tradeoff and if we could bring 50 democrats on board, all of this unity of the democrats, solid front and all of that, would vanish before our eyes and we would have a reagan administration. Stuart are you a little bit disappointed today, art laffer . You always put a bright smiley face on things, thats the kind of guy you are. The budget was awful, stuart. The budget was awful, but you know, its classic for what happens in these circumstances. Now, with us in the early 80s, it lasted for two and a half years for goodness sakes. By 82, reagan was being trashed and the democrats picked up huge numbers and seats in the house and picked up one in the senate and the bolen amendment and all of that was put on reagans back and put in chains and it didnt stop us. By 84 waxed mondale and then they joined us. Stuart what are republicans supposed to do, not republicans in congress, but voters, those who want free markets and tax, what are they supposed to do. Theyre supposed to be judgmental on whats deliver and not delivered and hold the politicians feet to the fire. People deserve the government they get. If they allow this government to give them not what they promised, but to give them something they dont want, they should throw the bums out. And thats the way it should be, both democrats and republicans. Republicans are not immune to being thrown out of office if they cant deliver what they promise and health care is a classic case. We should have repealed obamacare two years from now, you know, we have a bill that passes right now, saying two years from now, this bill will be repealed in its entirety and then work on how to provide Something Else, if Something Else is needed at all, which im not sure it is. Stuart its the first time ive seen art laffer even a tiny bit down, but hes resurrected himself at the end. See that smile . Hes back. At 56 ive been short all of my life so what can i say. Stuart stay there, art, well bring you back very shortly. Cheer up. Come on. Look at dow futures, were down im going to call this a dead flat opening, however, look at big techs, they dominate the market so much. All of them, facebook, im including tesla in this one, theyre all at or extremely close to alltime record highs. Tesla is now,ed 322 per share. I mean, just extraordinary stuff. Look who is here this tuesday morning. His name is tom sullivan, a great guy. Welcome back, tom. Hey, good morning. Stuart ive never seen anything like this. The fabulous five as i call them, ive never seen a group of companies so dominate wall street as this group is dominating now. It the technological revolution weve been in and these are the new industrials, if you will. This is where the money is going to be made and this is where everybody is going to be spending their money. Consumers are going to be buying it. The advancements are going to keep coming. Youre betting on the future and theyre betting more technology is coming. Stuart youre a financial analyst or have been. Yes. Stuart thats what you do. Right. Stuart you are a financial kind of guy. Correct. Stuart in good conscience can you tell viewer its got a ways to go. The facebooks and googles, a ways to go . When its this expensive, you go into it in some sort of buying in process, do it on a quarterly basis over a certain period of time, you just dont dump all of your money in today. The problem is, if you do and the market goes down, these are not ones that you sell, you hold on until they come back. Stuart if i were in my 40s and investing my 401 k money. Right. Stuart would i say, yeah, i could see the fabulous five ive got plenty of time before i actually need that money, plenty for it to go up and gyrate. Where are they going to be five years from now, let alone 20 years from now. Stuart i cant answer your question, but this is not the dotcom bubble, theyre Real Companies with real money. More than a business plan. Stuart apple alone has more than a quarter trillion in cash. I know. Stuart well get back to that. Almost as much as you. Stuart very funny, laughing. [laughter] President Trump floats the idea of breaking up the big banks. What exactly did he say. Liz bringing back suppression era law called glasssteagall, the deposit from the investment banks. This may make Elizabeth Warren or Bernie Sanders happy going after the mega banks. What caused the crisis was the democrats trying to fix income inequality loosening mortgage rules to get people a house. And leman brothers, bear stearns. By the way, if you had glasssteagall then, you wouldnt have rescues as well. Stuart why does the president suddenly come up with the idea of a new glasssteagall break up the banks . Where does it come from. Liz because of warren and Bernie Sanders and. Stuart what has Bernie Sanders pan Elizabeth Warren got to do with the president . Im feeling the argument. Im all for reinstating glasssteagall. Liz, you make a big argument. The banks, if they fail, dont bail them out with grandmas deposit money. Stuart shareholders bear the risk if they invest in an investment bank. Not the government, not the taxpayer, not the depositors, used to be used to be. Liz the bailout, this started under george w and obama picked it up. Stuart its an extraordinary thing to stick on the table when youve got Health Care Reform, tax reform and glasssteagall i dont see it as right or left, i see it as good financial management. It was put in the 30s and went out in the 90s and we didnt have a problem with commercial banking. Stuart i wonder if its trying to get the left on board with one donald trump suggestion. And you cant ignore the Government Role in the housing crisis. I agree. Stuart chucked on the table at a time like this, i dont understand that. Elsewhere, weve got President Trump, he is scheduled to speak on the phone with Russias Putin today around 12 30 eastern time. The president says our relations with russia may be at an alltime low. The phone conversation coming up later this morning. The big story on capitol hill, uniteds ceo, that would be oscar munosis, hes in, as they say, the hot seat. Hell be grilled by lawmakers over the dragging incident. Is this just political grandstanding . A fair question to ask. It is. And this is interesting, a travel alert for europe, warning americans are possible terror attacks in tourist destinations and you know them. More varney after this. Why paa spontaneous moment . Cialis for daily use treats ed and the urinary symptoms of bph. Tell your doctor about your medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, or adempasĀ® for pulmonary hypertension, as this may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have a sudden decrease or loss of hearing or vision, or an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis. Do you own stock in etna . If you do, youll get a slight pump up in the value of the stock today. Up 1 , maybe 2. They lost money in the failed merger with humana, but the stock is going up when the market opens. And i find this fascinating and somewhat anxiety producing. The state department has issued a travel alert for all of europe throughout this summer. Details, please. Liz theyre talking about isis and al qaeda, through september 1st, citing attacks in france, the u. K. , sweden and russia and theyre saying its not just big tourist destinations like sporting events, its airports, train stations and gets to the level of hotels, restaurants and churches. Attacks and not just bombs, but also knives. Stuart its not flying over there thats part of problem. Liz its when youre there. Stuart its when youre on the ground. Thats a frightening warning for americans this particular point of time. Ten minutes from now, the United Airlines ceo will testify about the dragging incident. Come on in, please, a republican from kentucky, hes on the Transportation Committee and he will be asking questions today. Congressman, the end of the day, what do you want United Airlines to do and other airlines to do about this overbooking situation . Look, the way this passenger was treated, particularly from kentucky, was egregious, but i have faith in the free market and competition. And united responded with good ideas. For instance, the government requirement for passengers to be compensated was maximum 13, 50. 1,350. And united says theyll go up to 10,000 to get passengers to change seats. There are changes that make goodpist sense. Stuart it will be political theater and give politicians. Not being pejorative, but congressmen a chance to vent to the American Public and have a go at oscar munoz. Yes, and i advise students of Political Science to change their major to theater, and we have a lot of that in the commit. Government has a monopoly enforce, and one thing that businesses cant do. And the passenger was dragged off the plane ing the force of govnment. And we shouldnt drag a ceo around using the force of congress. Theres a federal nexis. Usually states take care of consumers and make sure theres not fraud or unfair practices, but when travel on the airports, in one day you to go to three or four different states. Stuart you dont want new rules, do you . I dont know that we need new rules. A few years ago, it was clear the airlines were abusing passengers, keeping them on the tarmac for hours. And there were appropriate measures. What we need to find out in the hearing, is this systemic issue, is it prevident in all airlines and does Congress Need to act . Id rather we dont overreact. Stuart the gentleman who was dragged, he has settled with united. Have you had any contact with him or his lawyer because youre from kentucky, hes from kentucky, are going to be asking questions today. Any contact with his lawyer or the legal people . I havent talk to his legal people and i havent talked to this doctor, but ive heard good things about him. I just came from a meeting from constituents, and someone said they had a relative that this doctor operated on sunday and may have saved his life and nobody else would show up on a sunday and do the operation. Its important we keep in mind, this passenger probably had a legitimate reason to get to his destination quicker. But i think the solution is not more government here. And i think that united responded appropriately. Stuart they have so far, theyve taken step. Well be watching you later on this morning. Thanks for joining us this morning. Thank you, stuart. Stuart this is just in from ford motor company, sales down 7. 2 . Thats this april over last april. Thats a premarket check of the stock. Its down 1 Still Holding at 11 a share for board. Now this, President Trump tweeting either eject more republican senators in 2018 or change the rules to 51. Our country needs a good shutdown in september to fix the mess. Not quite sure i get that one, but nonetheless, thats just in. Check this out. Aeroflight from moscow to bangkok hit severe and i mean severe turbulence weather, 15 passengers are still in the hospital. When you get on the plane they say please keep your seat belt connected. If you had your seat belt on none of those injuries would have taken place. Stuart keep your seat belt fastened. Good advice. Yes, simple. Stuart the headline from the New York Times opinion page in honor of may day, when communism inspired americans, what . More varney after this. Did you know slow internet can actually hold your business back . Say goodbye to slow downloads, slow backups, slow everything. Comcast business offers blazing fast and reliable internet thats over 6 times faster than slow internet from the phone company. Say hello to internet speeds up to 250 mbps. And add phone and tv for only 34. 90 more a month. Call today. Comcast business. Built for business. Hey youve gotta see this. Cno. N. Alright, see you down there. Mmm, fine. Okay, what do we got . Okay, watch this. Do the thing we talked about. What do we say . Its going to be great. Watch. Remember what we were just saying . Go irish see that . Yes im gonna just go back to doing what i was doing. Find your awesome with the xfinity x1 voice remote. It was may day and this kind of thing was happening in various large cities across the country and this is portland, oregon, 25 arrests and this is in downtown. Riders were throwing everything. Look at that, wanton destruction, wearing masks, all in black and weve seen it so many times before and we saw a lot of it yesterday. Lets not forget that. Dont forget, Democrat NationalCommittee Chair tom perez addressed one of the may day rallies in washington d. C. , he said and i quote, no human being is illegal. And thats interesting. Thats what he said. Here is a headline from the New York Times, this is the oped section, when communism inspired americans. And art laffer is still here. I want your take on that, when did communism inspire americans . I would argue that communism inspires americans all the time because of the failures and atrocities done that, i think convinced americans, the Free Enterprise, pro growth Democratic Capitalism is the way to go and its that example that made it locked tight in the u. S. , my view. I dont think the markist model has worked . It hasnt worked in economics or in politics for sure, the mother of all atrocities. Stuart may day is the international workers, i didnt see the workers represented at the riots and that was plain and simple the far left taking their politics to the streets. It was a mass antitrump demonstration all across the country. Hold on a second, art. Am i missing something here . No, no, go back to the oped. They were referring to the 1940s and 1950s and then they called them progressives, but went to communist because social workers in this country were feeling some sort of affinity with them and they changed their names. Stuart go. Liz when are these guys going taking to the streets. When are they going to march for those slaughtered by the communist regimes . Theyre not, theyre looking at donald trump at each and every team. And i love seeing you there, tom. How are you, art . How are you. Very well, thank you. This is a classic example of these arent workers, theyre organizers who arent workers. They like job, like output and employment and if we could only get this country going with tax cut