tv Bulls Bears FOX Business February 5, 2017 6:00am-6:31am EST
answer to our question about examples of failure turning to success. he wrote your career turning success into fox. thanks kirk, it's good to be here at fox where you get to say what i want to say. glad i tried again. that's our show. see you next week. at 6:00 a.m. eastern time. steve: we'll see you back here tomorrow. >> jobs rocketing. stocks surging as president trump promising tax cuts are coming. soon. is that what we need to get our economy booming? hi, everybody, i'm dagen mcdo you in fo dow. this is bulls and bears. the bears this week along with lee carter and cath he. welcome to everybody. john, look at how the market jumped on friday when president trump just simply said tax cuts are coming soon. you said that's the most important thing to put jobs and the economy in overdrive. >> yes. and i think that is what the market is expecting.
remember, the market was flat from november 2014 to november 2016. and you've seen this incredible run-up since. then president-elect trump was elected, and it's because of these tax cuts that are coming. the big fear is that president trump is doing some very divisive things first. maybe the johnson amendment going after a border-adjusted tax. things that he's spending his political will on. i think what he needs to do and what the market wants to see him do is especially the corporate tax. because you're going to be hard-pressed to find anybody on either side of the aisle that disagrees with the fact that if you give 20 to 30 cents back on every dollar earned to a small and medium size business because you're taking that business from the past, putting it in the corporate tax size that this is not going to be great for the economy. not good for the economy. this is going to be great because these small businesses for the first time are going to have some breathing room, they'll have capital investment money. they'll also be able to hire employees. this is a direct stimulus and
something we can get past easily for both sides of the aisle. >> the confidence there. you saw it in that jobs report for last month with big boom in retail jobs. construction jobs, even manufacturing picking up. but you have to follow through with that and lower taxes. that's what business owners and operators are expecting. >> and the individual, dagen. look, i disagree with one thing that john said. i agree with another. john said that some of the things he's been doing are controversial. i think they're controversial only to the left. to the people who voted for him, he's doing everything he promised. he's protecting our borders, addressing illegal immigration, he's cutting the size the government. as you point out, and i think john is right, right now is what we need is that fourth or fifth shoe if you will, and that's cutting taxes. i think the john addressed the companies for the small businesses.
for the individual out there, i think they feel they've been mired in this slog for the last eight years. they see no wage growth, they know the labor force participation has been dropping, the only reason unemployment rate has been growing is because there's been crappy part-time jobs or unpaid internships. so people need more money in their pocket. they know that every dollar they send to the -- to washington d.c. dagen, is pretty much wasted. you know, percentage of government expenditures and gdp is now almost 20%. even back in the '30s at the height of the recession, it was less than 10%. let the people keep their money. simplify the tax code and as john points out, cut the marginal rates, and you are really going to have a supercharged economy. dagen: the economy needs it. it wasn't even growing at 2% at the end of last year. the unemployment rate ticked up because more people are coming back into the workforce and the jobs still aren't
there for them. >> i don't know if we need anything. the economy's not that bad right now. the stock market's hot. it's not all expectations of a tax cut. you know, we can't really afford a huge net tax cut at this point. we could certainly use a need tax reform, and it would take a real wrecking ball to do that and that's basically what donald trump is, and he has more power right now than a lot of other presidents had. but to john's point, you don't get to go ahead bogged down on the left and the right but a lot of investors are worried about some of these policies because in the past, policies are not good for the stock market or the economy. obviously, tax improvements are a clean benefit to investors, consumers, et cetera. but some of this other stuff could go either way. so you would only get boggled down and stuff. don't start doing health care reform because that ain't fixable. do the taxes first before you get bogged down. dagen: tax cuts, individuals want this. they want to keep more of their money.
>> there's no question. it's a lot of what got him elected was i'm going to promise to cut taxes, give you jobs, the economy's going to get going again, it's what people want, what people voted for him. and i think we see he's a man of action. he has had 18 executive orders and presidential memos in 14 days. this is, like, whiplash we're all having trying to keep up with him. and there's no question. he said he's going to do it. he's going to do it. is it going to be an executive order in the first 14 days? no, this is something he's going to work with congress on and show he can work with congress on and something we can all agree on. it's something that's not controversial, it's something that people want, and we're season seeing samsung, other companies saying we're going to bring jobs america because of the promise of tax cuts. the pharmaceutical industry just met with him. he talked about tax cuts, job growth from that industry. this is something that's important not just to voters but also to companies wanting to bring more jobs to this country. dagen: and a complicated tax code, kathy, and i know you're not going to argue with me.
75,000 pages it actually crushes the little guy. the tax cuts and tax reform in the next few months, huge boost to the economy. >> well, fantastic. first of all, i have to say thank you, obama, for this company because trump did not inherit an economy that obama had inherited. we're facing that great recession, and we did not hit it. so thank you, obama, for this economy right now. and the tax cuts, fabulous. we want them. we want tax reform. we want paul ryan's tax reform to come through. everybody's hoping for that. but is trump going to do it? because trump has started so many other fires that he has to put out, is he going to be able to do the tax reform? dagen: gary b, was that you moaning and groaning? >> look, first of all, kathy, welcome to the show. but if i hear this thank obama for the economy thing. yes, we're so thankful that hillary clinton couldn't even beat donald trump. >> she did win. >> every state and local. he admitted the -- yes, thank obama for making the
republican party a lot more relevant. but the other point is i want to get back to jonas' point because this is a mentality. saying he can't afford these tax cuts. my gosh in other times when we've actually cut taxes, the revenues to the government have increased. we made it simple, we lowered the marginal rates, people like jonas out there will look for less tax loopholes and say, oh, my gosh i don't have to try to hide this money. i can afford to pay this. if it's simple, if it's direct, if it's low, you will see the revenues not drop off. i think it's perfect for the economy. and, again, yes, i thank obama for moving out of the way and letting donald trump become president. dagen: jonas, do you want to respond? >> yeah. every major tax cut we've had in the past has been fallen up by some little sneaky increase. because at the end of the day politicians don't want to take away other things people want and, unfortunately, we're hearing that out of the guests here.
those things people want are why taxes go up because they don't cut medicare. >> you have to address both sides. you have to address the spending side. >> you can't want all of this other stuff because it can't all happen and that would lead to ruin. dagen: but, john, we are seeing donald trump go after regulations for every one dollar in new regulations, these agencies in washington are going to have to cut $2. the economy would be 25% bigger if we had not had regulations. if there had been no new regulations since the 1980s. >> that's right. we saw a regulation reform a little bit in 1996 with the small business fairness act under president clinton, which did a lot to spur the economy in the 1990s. but since then, we've seen 20 years of regulation upon regulation and debt is huge to these small and medium-sized businesses who can't afford to deal with all the compliance issues. to jonas' point, though, about we need more revenue. look,
when president obama took over, we were at $2.1 trillion in revenue, it was 3.2 trillion last year in office. it was a 50% raise in revenue. 19% gdp. which about all the nation can handle right now. they're still running a 500 billion-dollar deficit. because these morons can't ballet budget, that doesn't mean we should give them more money. giving more money back to these small businesses is how you spur the economy. dagen: i make better decisions with my money than the people in washington. and i think you can agree with that. neil in 20 minutes in washington. what have you got? >> president trump using the power of the white house to get things done. from signing executive orders to meeting business leaders. is leveraging where he's living the best way to get down to business? plus did the white house just put public unions on notice? we're on it at the bottom of the hour. dagen: thanks, neil. we can't wait.
but first iran test firing a iranian missile and then rebels attacking a saudi ship. now president trump is slapping new sanctions on ♪ you know how painful heartburn can be. for fast-acting, long-lasting relief, try doctor recommended gaviscon. it quickly neutralizes stomach acid and helps keep acid down for hours. relieve heartburn with fast- acting, long-lasting gaviscon.
we'll send you right now back to bulls and bears. dagen: the u.s. hitting iran with new sanctions after a test fire ballistic missile. and iranians attacked a saudi ship. now patrolling off the coast of yemen. gary b, you say it is about time we got serious with iran. >> absolutely. it's way pastime. look, since 2015, they've fired 12 ballistic missiles. now, not according to us have they violated anything but according to the united nationunited nations security council. you know how many they were allowed to fire? zero. so is it time to get tough? absolutely. donald trump is the man to get tough. the question is do sanctions work? that's a simple one. what brought iran to the table last time? it was the economic export
financial sanctions we put on them along with five other countries. do they work? yes. should we do them? absolutely. dagen: lee, because the obama administration was so worried about getting the nuclear deal done and preserving it, they did nothing about the firing of the ballistic miles. one on the side of it writing in farsi, hebrew, and english death to america, death to israel. >> it is amazing we are trying to be kind to this country. it is run amuck, and i think a lot of people wrote a lot about national security about we need to get tougher on these countries. people have not got better over the last eight years. in fact, they've gotten worse. we're having things like this happen. people are upset. so what are we supposed to be? just sit there and namby pamby about it? i think the nation is ready to strength about it. they want to see strength and leverage. vet donald trump concept using leverage he talked about it in the art of the deal, and i
think he's doing it here. dagen: john, what do you say? >> i agree with gary b about the fact that we need to do something with iran. the problem is the un security resolution of 2015 that was signed in vena is a big ambiguous. so they're trying to get around a loophole saying they haven't violated the treaty. when you're putting sanctions on these guys, they have not done anything to violate the nuclear agreement, so you can't go after them over that, you go after missile supply which typically don't deal with the united states anyway. so these sanctions are pretty much meaningless. unfortunately, we're stuck with a nuclear deal and john kerry has become the modern day chamberlain. dagen: yeah, at least sending a message to iran. that the united states takes these missile firings very seriously. despite the fact that the obama administration was literally handing over billions of dollars in cash that iran is using to fund terrorism. >> well, on his watch. we do not have any terrorist
attacks from iran and on his watch, we do not have nuclear proliferation from iran. so the treaty that he did have -- with iran, it holds then donald trump says he's going to keep that in place. the policy in place, and the sanctions are probably something obama would have done. but i don't think obama would have sent out a tweet and played with fire with iran. this is not a joke in the way donald trump tweets is very scary and most americans don't like these tweets. dagen: it's his way -- there's no evidence of that, lee, we can talk about that whether americans like them or not. you know what? tweeting got him elected. period. but here's what donald trump said. trump tweeted iran is playing with fire. they don't appreciate how kind president trump was to them. not me. jonas, to that point, the obama administration did nothing about these ballistic missile tests. period. instead piles of cash to iran used to fund terrorism around the globe whether it's the assad regime.
>> well, this country has been under sanctions since 1979 and on. i don't know why you want to describe that as kind. that all said, you know, you were talking to former ambassador john bolton very recently i believe and as he always said, sanctions don't work by themselves. they might get you to the negotiating table. but all they're going to do is govern a country. if you want to stop nuclear proliferation, that is a whole 'nother ball of wax that isn't going to be solved by tariffs and banning stuff. that is going to require a serious harder stance with a threat of nuclear attack. unfortunately, when we first had our first nuclear weapon, we shouldn't let anybody get nuclear weapons. we should have drawn the line then. then russia got it soon thereafter. but at this point the best we could do is now that russia is sort of our new friend is say, look, only us two can have these. no other countries including the uk has actually launched a missile off the coast of florida. these things are dangerous. pushing it off ten years is
not a solution. dagen: gary b, a message to you. iran has violated the nuclear agreement which is potentially used in the making of nuclear weapons. missile firings. the obama administration did nothing. finally, it leaves someone talking tough. >> exactly. look, dagen, i don't know if anyone here on this panel has ever faced bullies. but how you face bullies -- and iran is a bully -- it's not so much do sanctions work. it's when the bully throws the first punch, you have to throw a punch back and not let them push you around and that's what iran is doing whether they can get to a loophole or not on these ballistic missiles, you have to throw a punch. and that's what trump is doing. dagen: thanks, guys. thanks, gary. cashing in just an hour from now. what have you guys coming up? >> issuing a warning to local gangs and politicians in chicago. if you don't stop the violence, the federal government will stop it for you. plus look out, hollywood, the best actors aren't in l.a. they're in dc.
see you at 11:30. dagen: thanks, eric, we'll be watching. but up here first. congress rolling back something that president obama snuck in before leaving office. someone here says will save you money on your energy bill. next. this is the silverado special edition. this is one gorgeous truck. oh, did i say there's only one special edition? because, actually there's 5. aaaahh!! ooohh!! uh! holy mackerel. wow. nice. strength and style. which one's your favorite? come home with me! it's truck month! find your tag for an average total value over $11,000 on chevy silverado all star editions when you finance through gm financial. find new roads at your local chevy dealer.
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>> there's no question that reducing these regulations and the burden on these countries can grow the industry and cut costs for all of us. and it's something trump is looking at across the board. he promised the pharmaceutical industry he was going to do it this way. he talked about putting a drug to market has gone up ten times in ten years. and he said i promise i'm going to give you relief so that you can reduce costs and do better for your customers, and it's the same thing here. dagen: gary b, lower energy bills. >> look, i appreciate the gesture that trump's doing, but it's not coming back. analogous has won this war. that's not my opinion. i want to read you a quick quote. the coal industry cannot be brought back to what it was. you know who said that? robert murray, the ceo of murray energy corps. they're the nation's largest coal producer. he doesn't think it can come back, i don't irate either. dagen: kathy. >> mitch mcconnell fro from kentucky wasn't even happy about this. he said the regulation of the
coaling industry actually gives more jobs in kentucky. so mitch mcconnell wasn't happy with this. i can't see why anybody else would be. dagen: jonas. >> there's going to be more job coming up. this wasn't adding to a lower regulation cost, it was to keep streams clean. yo regulations on a car, and you can lower the price of a car without airbags and all of this garbage but the better off as a society and that's what it boils down on to is this regulation the cost of the industry better that will not alternative. that's really the plus or the minus for all of these regulations. and there's a lot of regulations that probably need to go that doesn't mean. dagen: mitch mcconnell said this was a job killer, and he wanted to get rid of this. >> but in the coal industry -- you've got a lot of coal jobs in china. meanwhile you have to wear a mask when they walk around because they burn so much coal. >> gary is right. what's killing the coal industry is clean, analogous
that is cleaner than coal. i don't agree cutting this regulation. you talk about where you can dump our waste and can it get into our streams and rivers? to me, it doesn't seem like they went after this regulation. it's just red meat to the base. dagen: special thanks for lee and kathy joining us. it's not you. it's me. nordstrom telling ivanka trump they're dumping her clothing line. why someone here said that could help your bottom line. they'll explain next partly suny does your child need help with digestive balance?
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think the stock is up 20% for the year. i do own it. dagen: bull or bear? >> i will bull on it. dagen: jonas, your prediction? >> nordstrom may backfire because they still sell the stuff even though nordstrom doesn't. dagen: john. >> amazon effect. bear. dagen: thanks. >> all right. well, look who is leveraging where he is living. i'm neil cavuto, president trump donald trump using every inch of the white house to get down to business and in the state dinning room. to signing orders in the oval office. to rolling out his supreme court pick in the east room. you get a sense of that house? he does too, and he hopes it wows you. even giving a sneak peak of his own air force one. it is meant to wow.