Vice President Pence talks tax reform accomplishment, Trump's first year

This is a rush transcript from "The Ingraham Angle," December 20, 2017. This copy may not be in its final form and may be updated.

LAURA INGRAHAM, HOST: And welcome everybody to "The Ingraham Angle" from Washington. It isn't just a Merry Christmas, it's a truly historic one. Epic tax cuts cleared both houses of Congress and were sent to the president's desk today.

I sat down with Vice President Mike Pence earlier this evening to get the White House take on this major achievement, that's coming right up.

This massive overhaul of the tax code is the biggest in 30 years. It's going to benefit 80 percent of the American taxpayers and is a major victory for businesses and for workers.

In fact, a slate of major corporations announced today that they will be giving out special bonuses to hundreds of thousands of employees as a result of the new tax field. Why, it's like Christmas day at George Bailey's House, kind of except for the caroling.

The tax bill also delivers another huge achievement to the president, a repeal of Obamacare's individual mandate. He did what Congress wouldn't do, which may be the death knell for a program that has been a drag on the U.S. economy.

The president promises, by the way that this is just the beginning. In a tweet congratulating Senate Majority Leader Mitch McConnell Trump proclaimed, "Our team will go one to many more victories."

Of course, the Democrats with the help of some in the media used a constant drumbeat of dire sky is falling predictions to drive down the popularity of the tax bill. But as South Carolina Senator Tim Scott said today, this victory is for all Americans.


SEN.TIM SCOTT, R-S.C.: This is not about Washington. It's not about the left. It's not about the right. It's about single-parent moms or looking for a reason to be hopeful in 2018, for the average family who was working paycheck to paycheck looking for ways to be hopeful about their future.


INGRAHAM: Now being there today at this event, I can tell you that it was pretty awesome because you could feel the buzz, the excitement that was in the air, and it was good for Republicans.

They haven't had a lot to celebrate really as a team legislatively, but without a doubt it was palpable. Earlier this evening, I sat down for an exclusive with Vice President Mike Pence and we discussed a variety of topics, but number one the victory of this tax reform and a whole lot more coming up.


INGRAHAM: Mr. Vice President, thank you so much for joining us. We really appreciate it.

VICE PRESIDENT MIKE PENCE: Thank you, Laura. It's a great day for America.

INGRAHAM: A historic day, first time in 30 years, the last time was during the Reagan administration. Tell me the mood in the west wing today after a long battle.

PENCE: I think all of us just felt very grateful. Grateful for the president's strong leadership or somebody who literally ran on a commitment to revive the American economy, to make sure that the forgotten men and women of this country or forgotten no more.

I watched this president all year long as he fought, not only for the largest tax cut in American history, which passed today, but for the kind of regulatory reform, rolling back federal red tape.

Releasing of American energy, all the things that have already revived the American economy, but to be here for the largest tax cut in the history of the country, the kind of tax reform we haven't seen for 31 years, and at the same time to repeal the individual mandate and Obamacare and open up and up to environmentally responsible drilling is just humbling for me to be a part of.

INGRAHAM: Republicans are always known to be deficit hawks, but this legislation by most don't like most estimates does increase the deficit by about $1.5 trillion. What about that over 10 years? How concerned are you about that and does that mean we will be tackling entitlements as Paul Ryan is always wanting to do?

PENCE: I can tell you, I mean, the need for the Congress to always look for ways to tighten its belt is a real priority for President Trump. But the estimates of deficits here are all based on some pretty predictable growth estimates going forward.

INGRAHAM: Tax Policy Foundation says it does take into account growth, even if the tax cuts are permanent, they say it adds about 1.4, 1.5 --

PENCE: That's right, but I have to tell you President Trump really believes, we all do, that by letting the American people keep more of what they earn, by letting middle income Americans have more spending power, by lowering taxes on businesses large, and small that we will outperform those growth projections and we will see those deficits overcome by growth, but also by exercising the kind of fiscal responsibility that President Trump has been driving for since the first day of this administration.

INGRAHAM: Why is the public not with this bill, though? Polling, which, you know, I'm doubtful of some of the polling, but pretty much every poll puts it between about 33 percent and 42 percent popularity of this legislation. How do you guys go out now to every part of the country and sell this as a tax cut for the middle class even though the top 20 percent do get the lion's share of the relief?

PENCE: Well, as the president did today on the south lawn, we are going to continue to make the case for this middle-class miracle. I mean, when the president laid out a vision for historic tax relief this year, he basically said we want to cut taxes for every American.

INGRAHAM: You have some work to do to sell this?

PENCE: I think maybe a little bit. I got to tell you when the American people start to see more in their paychecks in February, then they will start to realize that the president's vision here, that this middle-class miracle that was passed today by the Congress was an idea whose time has come. I really believe it will sell itself.

INGRAHAM: Carried interest benefits hedge funds, they get to have their profits taxed at a much lower rate than most Americans. That survives in this legislation. That doesn't seem like you are kind of taking this new approach to the big hedge fund force in the United States. I understand the president wanted it out of the legislation, which Republicans demanded that it stay in?

PENCE: Well, look, the president would have been happy to see it come out but the --

INGRAHAM: Did he go to the mat on that? Why should hedge fund guys get this continued benefit of a low tax rate? How does that look to the middle class?

PENCE: I think what the president went to the mat on was really just advancing that vision that he articulated this spring for tax relief. This economy is already rolling at 3 percent growth, which people told the president during the campaign, they laugh at him and said it would take years to get 3 percent.

He got there by the third quarter of this year and we are continuing to see growth. I truly do believe that you are going to see companies that had too many incentives in our old tax code to take jobs overseas and you'll start seeing jobs coming back to this country. You will see trillions of dollars pouring back into this country investing in American jobs and American workers and we will see our economy expand like never before.

INGRAHAM: Are you surprised, Mr. Vice President, that you didn't get one Democratic vote, not one?

PENCE: Yes, I am actually.

INGRAHAM: I find that to be actually stunning. Even as partisan as things are, not a single -- and was there anything that Republicans could have done? Joe Manchin said it was all behind closed doors, which is not accurate, but he said he had a list of things that were never considered.

PENCE: Laura, look, I watched President Trump bring Democrat members of the House in the Senate to the White House.

INGRAHAM: So, what didn't work?

PENCE: For meetings, for meals to sit down, and say we want to work with you. Well, when you have the majority of the members of the Senate, Democrats in the Senate signed a letter last summer taking themselves completely out of the equation, that's a disappointment, not just to our administration but to the American people.

The American people want to see the Congress work together. I promise you, you know this president well. He's going to continue to reach out across the aisle. We will take on issues like welfare reform and infrastructure next year, rebuild America.

INGRAHAM: You want Paul Ryan to say as House speaker? There was some scuttlebutt that he might be leaving sooner than people thought.

PENCE: I think the result of this tax cut really speaks for itself and the president and I hold Speaker Ryan in the highest regard and want him to stay in the Congress and continue to lead the Congress because we are really just getting started.

INGRAHAM: Are you willing to do Medicare reform or is that just too big of a hill to climb once again?

PENCE: Well, first off, the president made it clear during the campaign we will not be cutting Social Security.

INGRAHAM: No cuts, no changes.

PENCE: Remember on that health care bill that we came close on a couple of times was fundamental reform in Medicaid. I mean, there are ways that we can find savings and even improve services to our most vulnerable Americans in these programs and I promise you whether it's Medicaid or other areas.

INGRAHAM: Medicare, Social Security, we are not going to touch those of the first term.

PENCE: The president has been very clear on those issues, but look, a growing economy and fiscal responsibility giving states more more flexibility to administer programs like Medicaid is a pathway towards fiscal solvency.

INGRAHAM: You think we can grow our way out of $20 trillion in debt, though, Mr. Vice President? Even with 4.9 percent growth that is a steep cliff.

PENCE: We think we have a president who has a boundless opinion about the capacity of the American people and the strength of the American economy. I have no doubt that what we've seen in this year alone where the economy is coming back, optimism is back, and all of that is before today as this tax cut takes effect and takes hold.

As people begin to feel the freedom from that mandate in Obamacare that was repealed. Think about that, for the last seven years the American people have had to pay a tax for the privilege of not having to buy insurance that provided them with minimal coverage.


INGRAHAM: Democrats really thought they had derailed the Trump train in its tracks, but tonight the president seems to have all the momentum. To put it all in perspective with us, we are joined by Fox News contributor and senior editor for "The Federalist," Mollie Hemingway, and Igor Volsky, the vice president of the Center for American Progress. Great to have you both on.

Igor, let's start with you. You heard with the vice president said, he's very confident, optimistic. He said we are just getting started.

IGOR VOLSKY, VICE PRESIDENT, CENTER FOR AMERICAN PROGRESS: Well, I will agree with you, Laura. I'll start like that. You said most of the tax cuts go to the richest Americans and that's precisely the problem with this bill. For a president who ran on a populist agenda, the forgotten man and woman, to give a tax cut, 83 percent of the benefit by 2023 go to the top 1 percent.

That's a big problem in the middle-class tax cuts expire over time. You add to that the fact that 13 million people are going to lose their health insurance, that premiums are going to go up by $2,000, and this thing is a real disaster.

MOLLIE HEMINGWAY, FOX NEWS CONTRIBUTOR: This is the problem with Democratic messaging. If you are saying the tax cuts don't have anybody but the wealthy. We are middle class what we will get, and we are so happy with what we are going to get. A lot of people say $1,000 or $2,000 isn't very much. To people like me it's a huge ordeal.

VOLSKY: You are in for a real surprise when those cuts expire. When your taxes are going to go up by 20, 25 because they change the way the inflation is calculated. That's the real problem, right?

INGRAHAM: These are the companies that are offering bonuses, pay increase and more on the heels of this tax legislation. Boeing, AT&T, Fifth Third Bancorp, Wells Fargo, Comcast, hundreds of thousands of employees are either getting increases in minimum wage, middle-class people, or thousand dollars surprise bonuses because of this.

I understand the Democrats messaging, they will say it doesn't mean anything. It means that Trump is not a populist. I reject that because we know the top income earners pay the lion share of taxes so obviously they will get more numerically in tax cuts if you are going to do this kind of tax reform.

But business is made up of individuals. Is it not? Aren't individuals through 401(k)s, pension funds, they need business to do well. If business is not doing well at optimistic, that does not in any way filtered out to the workers who need raises or increases in income, correct?

VOLSKY: It's great that we are buying the corporate spin about what these companies are doing in bonuses. That's very different terms of increasing wages. If you look at larger surveys of companies, look at a Yale survey for instance came out just a couple days ago, 110 CEOs, only 14 percent said they would invest the benefits into wages.

HEMINGWAY: Corporate tax rates are attacks on employees. There have been studies that show when you tax a corporation most of that is borne by the employees. Cutting corporate tax rates is a benefit to employees. We have been out of line in this country relative to Europe on our corporate tax rate.

Companies have every incentive to take their business overseas when we are making it hostile for them to employ people here. Part of what you say is this is really corporate tax repeal and not much of an income tax relief for people, but corporate tax relief is very important for actual employees.

VOLSKY: And you know where it goes? To corporate CEOs, not to the women who work at those companies.

HEMINGWAY: Corporate tax rates are borne by employees. They lose wages and that's a really big --

VOLSKY: If you want to make the case for repealing corporate taxes.

INGRAHAM: OK, let's talked about Republican messaging, which I think has to improve on this, no doubt about it. Democrat messaging on this has been I guess probably effective to some extent given some of the numbers for the tax reform, but it's also a little bit over the top. Invoking today, Tiny Lim, let's watch.


REP. JACKIE SPEIER, D-CALIF.: What we're doing here today is basically saying wealthy Americans, big fat Christmas present for you. Tiny Tim, we are taking your crotch away from you.

REP. NANCY PELOSI, D-CALIF.: Like Tiny Tim, they now find their future in danger because of the greed of those with power. The cruelty that is in the heart of the tax scam.


INGRAHAM: I thought it was the Tiny Tim, who tiptoed through the tulips. It's obvious with a Christmas carol ripping the crotch away.

HEMINGWAY: Only the most cutting edge, most popular references from Democrats, Tiny Tim.

INGRAHAM: Talk about the 1930s, that was great.

VOLSKY: I don't know who Tiny Tim is.

HEMINGWAY: They don't even know who Tiny Tim is! Read your Dickens.

INGRAHAM: He's stumbling. Mitch McConnell took the crotch, he just hung it up. This is so over the top. The economic growth has been really strong. Obama did not have two quarters of these types -- we need to grow wages in the country. We need to repatriate capital, which I think is really important.

If we don't bring capital back to the United States, that is not going to be good for the average man and woman. But Molly, what have Republicans have to do as I asked Mike Pence to message this to people who are maybe hostile to the president's message?

Parts of the country that may be don't like them very much, California, New York. I would take this all of the country, be bold about it.

HEMINGWAY: It makes sense the Democrats would be screaming in caterwauling about everything, but what is frustrating is how much of the media participated in that as well. Usually when the general public is confused about the effects of legislation, you might see the media explain what is actually going to happen like the vast majority of people are receiving tax cuts or like how I found out with my husband that we're going to get a nice decrease in our taxes.

So, I think part of it is making sure that when people see higher paychecks, when they see lower taxes, reminding them who got them that and making sure that's consistent messaging. There have been good things about the messaging, but something went awry where people got the wrong idea about this.

INGRAHAM: All right. We have a lot more with most of our analyst here. Stay right there. Part two of my interview with Vice President Pence in this debate when we return.


INGRAHAM: Now more of my exclusive interview earlier this evening with Vice President Mike Pence at the White House.

We learn not to trust polls all that much on the 2016 election, but much of the media just cannot stop obsessing about the president's relatively low popular tome of popularity. I asked the president if the tax reform triumphs will lift the president's approval rating.


INGRAHAM: Why do you think his numbers are where they are? Again, all polls not just one including Fox's poll, he's in the 30s. That's the lowest point of any president at this point in his first term. I'm not all about the polls, believe me, but all things considered it's better to be popular than not.

So, going into this new year, midterm elections, the generic ballot, every poll shows Republicans down double digits. What does the Trump-Pence's team need to do to tell the story to suburban women, to millennials, African-Americans, Hispanics, are you going to go to those places, even hostile places where people don't like you very much and sell that story?

PENCE: Well, first, let me say at one of the enduring lessons for me of the election 2016 was don't believe the polls. I don't remember a poll that had us anywhere close to winning. President Trump won a historic victory. So, we are skeptical about what the poll numbers are --

INGRAHAM: You saw the turnout in the Alabama race. African-Americans came out, women came out.

PENCE: If the president was sitting here, he would say we are going to get delivering. They will keep talking, they will keep resisting, we will keep delivering. And as the American people see us with a stronger America at home and abroad, a safer America.

Think about the progress on the international stage in the last year alone, our NATO allies are contributing as never before. North Korea has been isolated. We put Iran on notice and has not certified the Iran nuclear deal, and the ISIS caliphate has collapsed.

We've actually taken back with the capital of their so-called caliphate was thanks to the courage of our armed forces and the leadership of our commander-in-chief. We've made incredible progress.

INGRAHAM: That's why I asked the question about the polls. That is an unbelievable record in one year. By any standard if people are being objective. But the media, the establishment media doesn't want to give a shred of credit to this administration. Many of them are actually crediting the Obama administration for the economy, believe it or not.

So, they are getting credit. Getting those numbers up, I know you don't believe in the polls, but you don't think that's important in the midterms with these critical Senate races given you have a lot of people who want President Trump to resign. A building movement to investigate him on sexual harassment allegations. In the Senate and House don't you need that majority?

PENCE: Let me be clear. I'm skeptical about what the poll numbers are, but I think you can count on the fact this president, myself, our entire team, we will be canvassing across the country in the next year. We will be telling the story of the progress this country is making.

I really have to tell you. We live in a very divided time in the life of this nation. And I think the president and I truly believe that being in the most powerful economy in the world that only grew by 1.8 percent every year on average for the last eight years has created a level of frustration.

When the president coined that phrase, the forgotten men and women of America, he tapped into a frustration in the American people that they were feeling, and they knew it could be better if they knew the economy could be stronger.

They knew we could be standing again and commanding the respect of nations around the world, which is needed new leadership to do it, and I truly do believe that as we go forward, and we tell that story and the American people see those results.

I think we will see some of this division in the country began to wilt away as we see economic opportunities, wages begin to rise, our military standing tall and standing strong again.

INGRAHAM: Have you been interviewed by the Mueller team?

PENCE: I have not.

INGRAHAM: This has been, I think over the last month or so, it has been demonstrated that key members of this investigation are loyalists of either the Obama administration and/or Hillary Clinton. Knowing what you know and probably what you've seen about some of these investigators who are still working in this office, do you have faith that this will be a fair and impartial investigation going forward?

PENCE: Let me say we are fully cooperating with the special counsel and we will continue to, but I have to tell you, it's just not been a focus of mine or of this president. I think the reason you saw us pass the largest tax cut in American history, I think the reason you've seen the progress of a stronger and more prosperous America at home and abroad is because whatever Washington, D.C., has been focused on, this president, myself, our entire administration has been focused on where the American people are focused. We will let the special counsel do their job and continue to cooperate.

INGRAHAM: They took all those transition emails.

PENCE: We will continue to focus on our job. I think that's exactly what the American people want us to do.

INGRAHAM: It does take up time because you have to document production. You have to consult with counsel. I mean, a lot of people in the White House have to hire lawyers. I mean, I remember working in the White House as a young 20 something in this building and I didn't have to hire a lawyer, thank God.

That must not be very fun, and a lot of Republicans think this investigation is proceeding in an unfair manner because of the types of investigators that are on staff, and it continues to be a problem for a lot of people.

PENCE: I can just tell you and your viewers that we're just going to continue to cooperate. They should know we will continue to stay right focused where they want. When I'm traveling around the country I've got to tell you, again present company excepted, when you are traveling on the country, people are sticking their hand out, shaking her hand saying thanks for what you are doing for the military.

Tell the president thanks for what he's doing standing with law enforcement. Tell him thanks for what we are seeing in this economy once again. People are standing tall again and on a day like today when we see the Congress under President Trump leadership pass the largest tax cut in American history, the biggest tax reform --

INGRAHAM: So, much for the divided Republican Party. They all came together.

PENCE: I've got to tell you, it's humbling for me to be a part of it and we are just getting started.


INGRAHAM: Back now with reaction, we are rejoined by Mollie Hemingway and Igor Volsky. Mollie, the vice president is keeping on message and on focus that we are going to build on this legislative accomplishment. Mueller is going to do what he's going to do, but we will keep our eye on the prize which is the American people.

HEMINGWAY: Right. It is true that the generic ballot does not look good for Republicans and there are midterm elections coming very soon. What is the best way to handle it? Two things.

One the best defense is a good offense. It feels good to actually see some legislation get passed I'm sure. They should build on that success. At the same time, I think that some of this is overwrought.

Some of these talks about pulling and what not because Democrats seem perhaps more divided than Republicans. They don't have a unified message. They are not sure whether they want to be hard left or whether they want to try and actually reach out to average American voters. So, it's a long time until November.


VOLSKY: You know, the vice president said that progressives, Democrats don't give Trump credit. Let me give some credit, he has really broken a fever. Before Trump, Obamacare, now people have Obamacare.

When he tried to repeal it, it was hard to get people excited about tax cuts. Now, there are rallies all around the country opposing this bill. As you pointed out, Laura, this tax bill, the approval ratings are in the garbage.

So, and then you look at Virginia, you look at Alabama, if those two races are any indication, progressive Americans are energized, and so I understand --

INGRAHAM: I saw a guy on a bicycle. He was writing right past the White House one of those old-fashioned bikes and he had a big flag flying on the back.

VOLSKY: That was me.


HEMINGWAY: The resistance isn't the hard left. It's also the media, never Trump establishment Republicans and they really are excited, but the best way to fight against that is to actually give Republican voters something.

INGRAHAM: You need happy voters.

HEMINGWAY: And I don't think they had much to be enthused about.

INGRAHAM: They got to rally behind something. The Republicans are unified. I've got to say, a lot of headlines of the last couple years have divided the Republican Party is. What I think you saw today in those comments at that rally at the White House, these people who never like Trump are up there, he's practically on Mount Rushmore for Orrin Hatch and Mitch McConnell and Paul Ryan, et cetera.

But I think would happen sometimes to the Democrats is they go one step too far, which is what I think they did today over at The Huffington Post. if there was a writer named Andy (inaudible), "Huffington Post" contributor, and he tweeted about South Carolina Republican Senator Tim Scott being at the White House and standing prominently on stage next to the president.

He said what a shocker, there is one black person there and sure enough they have him standing right next to the microphone like a manipulative prop. Way to go, senator Tim Scott. And then Scott responded, probably because I helped write the bill for the past year, have multiple provisions, got multiple senders on board over the last weekend of work on tax reform my entire time in Congress, but if you would rather just see my skin color, please feel free.

The Huffington Post contributor apologized on Twitter, which is nice. It's identity politics though. You got right to, OK, there's a black guy who happens not to be a liberal, let's trash them. I found that to be lame. I've got to say, of all the things you want to complain about, the fact that Tim Scott is a Republican?

IGOR VOLSKY, VICE PRESIDENT, CENTER FOR AMERICAN PROGRESS: Yes, that's a really dumb tweet. That's a really dumb tweet and I'm glad he apologized.

MOLLIE HEMINGWAY, "THE FEDERALIST": But it's not just stuff like that. It's just the general hysteria. Multiple times a week you hear people say that everyone is going to die if net neutrality is changed or if this tax bill gets passed. You cannot keep dying or telling people that they're going to die and nobody's dying.

INGRAHAM: Grandma is eating Alpo, we're back at Paul Ryan pushing the lady of the cliff.

HEMINGWAY: And not just not dying but keeping more of their money. Keeping more of their money us a good thing that a lot people actually like.

VOLSKY: Let's not pretend like taking health care away from people, not giving people insurance, making it hard for people to buy their health care --


VOLSKY: It will result in death. You have a situation --

HEMINGWAY: The forced mandate was a tax on poor people and that is a horrible tax. It's a freedom to find tax. And this is actually removed.

VOLSKY: Some percentage of them will die. Some percentage of them will die. The people who have health care, the 20 million people who have health care under Obamacare are happy to have it. It's why if you look at numbers about how satisfied are you with your Obamacare coverage, those numbers are through the roof, absolutely. It's the truth, Mollie. Having health insurance is great.

HEMINGWAY: The fact is actually that prior to Obamacare there were a lot of problems with health care. And Republicans on the Hill did botch getting those fixed. Even though the individual mandate was taken care of, there still a ton of regulations that need repeal to truly --

INGRAHAM: Alex Azar will be the new HHS secretary early in the new year, and I say keep an eye on him. He was deputy HHS secretary under Bush. He knows what he's doing. He's going to slash a lot of those regulations, my prediction.

VOLSKY: People will die.

INGRAHAM: People will die. Merry Christmas, people will die.

VOLSKY: People will die if they don't have health insurance.

INGRAHAM: People don't want the government to run their lives all the time either, but it's great to see both of you. Have a great holiday. On top of all of this, good news for the administration. The script is suddenly flipping in the Russia probe when we come back.


INGRAHAM: Fox News has learned that the FBI has not been able to corroborate any of the important allegations in that infamous trashy Trump Russia dossier. That was one of the major revelations from Deputy FBI Director Andrew McCabe during his seven and a half hours of questioning before the House Intel Committee yesterday.

Congressional investigators tell Fox News there were several conflicts between his account and testimony from previous witnesses. And that means new subpoenas may be hanging on your Christmas tree. They are coming.

Sara Carter has been all over this investigation from the very beginning, and she joins us from sunny Phoenix. Sara, great to see you. How are you?

SARA CARTER, INVESTIGATIVE REPORTER: I'm doing great, Laura, thanks.

INGRAHAM: So McCabe is going back tomorrow for the Judiciary Committee testimony behind closed doors, but let's get to these conflicts that the questioners in Congress discerned between what he said and what other witnesses already testified to.

CARTER: Well, I think this is what is most interesting, Laura, because McCabe after seven hours -- and I like the word "interrogation" because that's what I was told he went through. He went through an interrogation. He was trying to answer questions about the dossier, and although he was defending the dossier, when it came to having actual evidence of what was in the dossier, that he didn't have. The only thing he could corroborate was that Carter Page actually went to Moscow. Beyond that, everything else that was in that dossier they had no evidence of.

Now, why is this important? I think you know, Laura, that this was probably used as a FISA, this was probably used to get those FISA warrants to continue to investigate members of the Trump campaign. And what now congressional members want to know is if you used this dossier for the FISA and you weren't able to corroborate anything in it, that's a big problem. And if other people are coming forward and your testimony is not matching those other people, we need to re-question them again. So we're going to need to send out more subpoenas.

And I think that's exactly what they're going to do. They're going to call James Baker, the general counsel who should be well aware of what's going on here, and they're going to call others. And I know they want to speak to Bruce Ohr who they haven't even had a chance to really debrief on yet.

INGRAHAM: And Bruce Ohr everyone has to remember, his wife Nellie -- I like Nellie. You haven't heard Nellie in a long time. I always think of 'Little House on the Prairie," but I like Nellie. Nellie worked for Fusion GPS, correct?

CARTER: Correct.

INGRAHAM: She had a connection to Fusion GPS, which of course paid for the dossier, worked with the Hillary campaign. And Bruce Ohr at the FBI, was that disclosed when he was working on these cases? Was it disclosed when Fusion GPS became so important? We don't know that, correct? We don't know if Mueller ever learned about it. He was removed.

CARTER: That's right. But according to the sources he did not disclose that, and that's what's really fascinating here. Another thing that was apparently not disclosed was the fact that he had met with Christopher Steele and he had met with Glenn Simpson, the owner of Fusion GPS. And remember Christopher Steele was the British former MI6 spy that they used to investigate the Trump campaign.

So this is what's really fascinating here. Why was Bruce Ohr meeting with Christopher Steele before and then Glenn Simpson after? Why was he meeting them, and what was he discussing? And the fact that his wife was a part of Fusion GPS, that's a huge conflict of interest and that's a problem.

Another problem, which an FBI agent brought up to me tonight, was actually Robert Mueller. And they were talking about Robert Mueller, special counsel, and they were saying if you look at McCabe, now going back to Andy McCabe, his history, he was promoted all the way up to the number three when Mueller was still in charge of the FBI. So there's another potential conflict there.

INGRAHAM: I want to ask you about Jim Rybicki, chief of staff of the FBI. Reports are that he is going to be subpoenaed to testify along again with Lisa Page, who of course is the paramour of Peter Strzok. So both of them are going to be returning because we don't know Rybicki has already given any testimony, correct?

CARTER: Yes, that's correct. We don't want to jump the gun here. We only have bits and pieces of information. There's a lot of information that was done classified or behind closed doors that hasn't been released publicly yet. I know they are going to want to talk to Lisa Page. That's very important. Remember she was having the affair with Peter Strzok. With the FBI Rybicki, I've heard many things about Rybicki. I've also heard that he could easily be promoted to deputy director. So he may be somebody to replace Andrew McCabe.

INGRAHAM: I got it. The question is why is Andrew McCabe still in this position at all? Most everyone I know who has any credibility thinks he should have stepped down quite a long time ago. Sara Carter, it's great to see you. Have fun in the sun in Phoenix.

CARTER: Thank you so much.

INGRAHAM: I have a question here, by the way. How far was President Obama willing to go to appease Iran and make a deal with them? And did he turn a blind eye to that very pleasant organization Hezbollah running drugs into the United States? You are not going to believe the lame excuses from Obama apologists. John Bolton is here to knock them down next.


INGRAHAM: Did President Obama go easy on Hezbollah? A jaw-dropping report from Politico says his administration forced the DEA to lay off a massive drug and weapons smuggling operation by the terror group, all in the name of securing the Iran nuclear deal. Now Obama foreign policy flacks are coming out in force to try to discredit the story as a rightwing hit job by "Politico." Joining me now to make sense of all of this is John Bolton, Fox News contributor, former U.S. ambassador to the U.N. Politico rightwing, that's a new one.

JOHN BOLTON, FORMER U.S. AMBASSADOR TO THE U.N.: That's a shocker. If this story is even close to being true, it's dynamite because it shows yet again the Obama administration would do anything to get this Iran deal. It was an act of appeasement. And the notion that we toned down a drug and money laundering investigation against the terrorist group Hezbollah for any reason is just incredible.

So the Obama spokespeople can say all they want. Let's have a congressional investigation about it. The Wall Street Journal is calling for that tonight. I think that's great. Let's interview everybody. Let's get it all out there, I can't wait.

INGRAHAM: It would be an official someone affirmatively going to the DEA and saying hold off on this. We don't want to complicate matters with this Iran deal.

BOLTON: Right, exactly. There are turf fights between law enforcement and intelligence all the time. I've seen them, I've been in them. That's not what this is. This is an effort to suppress this drug investigation so that the Iranian ayatollahs would not be upset.

INGRAHAM: So the Mullahs would be happy.

BOLTON: You can understand.

INGRAHAM: Of course. Marie Harf came out, Tommy Vietor came out and said this is manufactured, I've never heard of this program.

Let's move on, though, to this vote tomorrow in the U.N. General Assembly on our decision to move our embassy to Jerusalem, which Obama, Clinton, Bush all said they were going to do, didn't do. Trump actually does it, and now it all breaks loose. Egypt, the Palestinian Authority, Mahmoud Abbas said they are not going to meet with Pence when he visits the region. And Trump says good, we will save money. We're not going to give you any foreign aid. You want to do that, we are cutting off your foreign aid. He said that today.

BOLTON: I'm delighted by this vote. And just to preview it, I will make my forecast. I think it will be about 180 to four against us.

INGRAHAM: Wait, 180 --

BOLTON: Will vote to condemn Trump's decision to recognize the capital of Israel as being Jerusalem.

INGRAHAM: That many?

BOLTON: Yes. So great. So I think not only can we save some foreign aid, the time now to look at dealing with the forum in which these abuses take place, we had to veto a Security Council resolution earlier in the week. I think U.N. funding should be on the table. I think we should be looking at moving away from assessed contributions, taxation, to voluntary contributions, withdrawing from some U.N. organizations. The only time they really pay attention to us is when money is at stake. So you will see this interest in the Jerusalem capital issue disappearing when our contributions start drying up.

INGRAHAM: You spent a lot of time obviously at the U.N. Think of that real estate, you could turn that into a disco. There's lots you can do. You can have a nice gym on the top floor. There's a lot you could do because Merkel has all this money over there in Germany, open borders, bringing all these refugees and immigrants, they must be rolling in dough in Germany. Why don't we move the whole thing over there?

BOLTON: They want the U.N. system. I'm sure that people just can't wait to move to Frankfurt or someplace.

INGRAHAM: They all get their parking tickets covered, all that. It's a good deal. We are paying a lot of the tab still. Trump hasn't turned that over --

BOLTON: Well, 22 percent. That's the point, we pay 22 percent of most U.N. budgets. Let's make it voluntary.

INGRAHAM: It's a great point. Overall rate the president's foreign policy this year one to 10.

BOLTON: I think it's about an eight overall. I think this Jerusalem thing is a 10 strike. And I think his central point on the tax cut, which is you need a strong economy to have a strong America in the world, something Obama never understood, never paid attention to, it's absolutely essential.

INGRAHAM: Peace through strength.

BOLTON: Exactly.

INGRAHAM: Did Reagan in his first year announce a new national security strategy and then speak to it?

BOLTON: This is a new record. AND that in and of itself I think says someone.

INGRAHAM: Ambassador Bolton, have a merry Christmas, great to see you.

BOLTON: Merry Christmas.

INGRAHAM: And while the media tries to save Obama's legacy, Hollywood is doing all it can to dis Trump. What a shock. We're going to tell you which movie star is proving once again no Trump insult is to petty and unfunny in just a moment.


INGRAHAM: After the year Hollywood had with Weinstein and Spacey et al, you'd kind of think that its brightest stars would practice some humility on the whole moral barometer front. No such luck. Instead one of America's favorite actors is insulting the president just to sell his movie.

The swipe comes from actor Tom Hanks who has given us so many iconic moments on the screen, the big screen, but he kind of flops as a political commentator and pundit. Hanks informed "The Hollywood Reporter" that he doesn't think he would screen his new film called "The Post" at the White House if he was asked. Why not? "Imagine a world," Hanks explained, "where president treats papers like "The Washington Post" as purveyors of fake news." Hey Gump, maybe he treats them that way because half the time they are.

The actor stars in Steven Spielberg's new flick "The Post," about the paper's decision in the 70s to publish the top-secret details about the Vietnam War and the Pentagon Papers. The difference is Ben Bradley, the editor of "The Washington Post" at the time, actually had the Pentagon Papers. Today "The Post" routinely uses anonymous sources in all of its reporting, in most of it, at least when it's damning against Trump, and all too often gets things totally wrong that they then have to backtrack on or modify.

By the way, Tom Hanks needn't worry. As Daily Variety pointed out, President Trump has not asked to screen the film "The Post" at the White House, so no worries. Maybe it's time to, I don't know, cast away Tom Hanks. I kind of like him better by the way on the deserted island talking to that volleyball. That was cute. That's the dialogue that I enjoy from Tom Hanks. Riveting. I almost thought it was a basketball, I had forgotten.


INGRAHAM: Today's tax deal really was a remarkable day for this president and more importantly for our country. And it's a real shame when you think about it that not a single Democrat wanted to jump on board and help the workers of this country. And by the way, when I think of what the president did to Chuck Schumer and Nancy Pelosi through all of this, I'm reminded of this great holiday classic.

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