Will Trump's agenda get more bipartisan support in 2018?

The president challenges Democrats to work with him on infrastructure; reaction and analysis from Fox News contributor and former adviser to the president, Dr. Sebastian Gorka, and civil rights attorney and talk radio host Leo Terrell.

This is a rush transcript from "The Ingraham Angle," December 22, 2017. This copy may not be in its final form and may be updated.

JESSE WATTERS, GUEST HOST: Good evening. I'm Jesse Waters in for Laura Ingraham. This is "The Ingraham Angle" from New York. Thank you for watching the special "The Trump Agenda in 2018." That agenda got a huge start when the president signed the tax cut law into law this morning.

(BEGIN VIDEO CLIP)

PRESIDENT DONALD TRUMP: We had the largest tax cuts in our history just approved. I was growing to wait for a formal signing sometime in early January, but then I watched the news this morning and they all said will he keep his promise? Will he sign it by Christmas?

It's an honor to have you with us. We will sign this right now. This is something I'm very proud of. Great for our country, great for the American people. Thank you all.

(END VIDEO CLIP)

WATTERS: Looking forward to 2018, the tax cut could be a huge difference maker. Right now, Democrats think they're poised for big gains in the midterms elections because of polls showing unpopularity of bot the president and the tax cut.

But if those cuts make an already humming economy really take off, the president and the GOP will be in the driver's seat come November. Trump's team is ready to roll. He revealed one of his top priorities for early 2018 before heading to Mar-A-Lago for the Christmas break.

(BEGIN VIDEO CLIP)

TRUMP: I really do believe we're going to have a lot of bipartisan work done and maybe we start with infrastructure because I really believe infrastructure can be bipartisan. We have spent $7 trillion in the Middle East. Not to mention all of the lives and the heartache. It's so sad, $7 trillion. It's time for us to rebuild our country.

(END VIDEO CLIP)

WATTERS: The president may finally get that bipartisan support. It would seem difficult for Democrats of all people to argue about more domestic spending. So much to talk about.

Let's bring in our guests. Fox News contributor and former adviser of the president, Dr. Sebastian Gorka is in Washington, and civil rights attorney and talk radio host, Leo Terrell is in Los Angeles, California.

So, Doctor, I'll start with you. Trump will have to run along with his allies in Congress on reality. They can point to people's bank accounts and say there, that's the tax cut. Democrats, on the other hand, are running on emotion and envy. They're saying the rich are bad and you're getting hosed. You think it will be hard for the Republicans to out- message?

SEBASTIAN GORKA, FOX NEWS CONTRIBUTOR: Look, Jesse, first things first, thanks for having me and congratulations on that sterling speech you gave at "Turning Point" in the "USA Today" before yesterday.

WATTERS: Thank you very much.

GORKA: That was quite a speech.

WATTERS: Flattery will get you everywhere, Doctor.

GORKA: That's right. What are the Democrats going to run on? We have 3 percent GDP growth rates already, 1.5 million jobs created, the lowest unemployment in 17 years. Everybody that pays taxes will get a tax cut. What are they going to run on? I just don't see the message.

Let's remind ourselves, Jesse, President Obama was the only president since the depression who never reached 3 percent GDP growth rate for one year for his whole eight years in office.

The 2018 will be incredible for the president. It's going to be incredible for all Americans whether you voted for him or not, you will have an incredible 2018.

WATTERS: So Leo, the point is, the Democrats have not taken any ownership of the economy. They didn't vote for the tax cuts. They've been against everything the president has been doing. So, when the economy is humming along, they can't claim any credit. Is that going to be difficult for the Democrats to run against a soaring economy?

LEO TERRELL, CIVIL RIGHTS ATTORNEY: You know, I'm going to win this argument by using Republican principles. Today, when President Trump signed that bill, he threw Republicans in blue states under the bus. They're the reason why Republicans voted against this bill.

Let me tell the American public. Americans in New York, California will be double taxed. Now they'll have the disadvantage of paying not only a federal tax, but state and local tax. They have wiped out the interest deduction on mortgage.

Let me tell you how important that is. It's amazing how Republicans like Peter King, like Darrell Issa says this bill is not good. You know what? Selling this bill will be tough. Even your old Fox News contributor, Karl Rove said, Mr. President, stay in the White House because you're unpopular. Right now, President Trump could not sell free groceries to the American public.

WATTERS: I'm not so sure. You make a good point about the New York and California people. I'm probably going to get hammered and that's fine. I understand that. But for the majority of Americans, AT&T announcing, Comcast announcing. They're showering workers, hundreds of thousands of workers with $1,000 Christmas checks as a result of the tax cut, Dr. Gorka?

GORKA: I know your guest likes autocratic presidents like President Obama, who thinks they can dictate everything that happens in this country, but we have state rights. The president can't help it if California, New York or Connecticut is hosing the people that live there, that's the state's decision to do so.

If you don't like it in New York and Connecticut, you can do something about it as a voter. I was in Nevada this week. I was stomping for Danny Tarkanian. They hosted the event in the Extreme Manufacturing headquarters. They make the forklift trucks.

Think of this one thing, the biggest manufacturer of these forklift trucks. Last year, each of these costs $200,000. Last year they sold 115. Jesse, thanks to Donald Trump, thanks to the unleashing of the economy, Extreme Manufacturing has a back order of 900 units. That is the Trump effect.

TERRELL: Let me just -- Dr. Gorka, answer these two questions. Fundamental American principle, to be a homeowner, to buy a home. Every American homeowner got hosed because right now the interest deduction on mortgage rates have been eliminated. More importantly, what happened to the old traditional fiscal conservative?

Spending cuts with tax cuts. Where is Paul Ryan's video? All of a sudden, we're going to forget about spending cuts? This tax bill adds $1.5 million to the deficit. Where is the fiscal conservative Republicans --

WATTERS: Gorka, you want to take this -- I'll take half of it. On the agenda in 2018, they want a welfare reform will get done, which will cut spending and people are predicting massive growth as a result of the tax cut, which will bring in more revenue to the federal government. Dr. Gorka, do you want to finish off that point?

GORKA: I just have to. So, suddenly the left is worried about spending? President Obama doubled the money this nation owns in comparison to every other president before him. Suddenly they care about how much money the federal government is wasting. Come on, guys. Let's be serious.

WATTERS: You know, Leo, you are using so many Republican talking points. I think you might have to change your party.

TERRELL: No. I'm just showing the hypocrisy about what the Republicans are saying, this is so unlike Republicans. More importantly, Trump has just signed the execution warrant for every blue state congressional Republican because you know what? Like Karl Rove, Fox News contributor said --

GORKA: Karl Rove is history.

TERRELL: Now he has no credibility.

GORKA: He's a rhino.

(CROSSTALK)

GORKA: He's a rhino?

WATTERS: Hold on, Dr. Gorka.

TERRELL: Name calling. Shame on you.

WATTERS: Let's lay off our own contributors for a second. The House is under siege. I agree that historically it flips when the other party is out of power. I get that. But you know what, the DNC is broke. They only have about $4 million cash on hand. The RNC has about $45 million cash on hand. They have to fundraise a little bit more if they think they're going to win back anything.

TERRELL: Let me hit that out of the park right now. In Alabama, in December, guess what? More Democrats came out in December of 2018 than the 2014 midterm election. Those are numbers telling you that Democrats will create a storm in 2018. They're going to take over the midterm election.

There are people that are upset with this president. Can't sell groceries, can't sell free groceries because you know what? He's alienated the American public with his rhetoric.

WATTERS: Dr. Gorka, go ahead.

GORKA: The only people upset with this president are the people that don't understand why America chose him on November the 8th and who know that if this economy keeps on trucking, that they're in trouble. The Democrat Party is now predicated on one thing, Jesse and it's really sad.

It is predicated on this president failing and on this economy failing. That's un-American. To wish that people don't get tax breaks, to wish that you shouldn't get a bonus from AT&T. Why would you do that? Everybody's boat can rise. Everybody's boat can float. But no, I'm going to have to vote for the other person losing money.

TERRELL: You keep talking about those bonuses. Those -- we were promised jobs, not bonuses. Bonuses are one-time giveaways.

GORKA: We got jobs. We brought millions.

TERRELL: Bring me back in 12 months and let's see the impact of this tax cut --

WATTERS: Leo, there's already been 2 million jobs created since the president came into office. Wages will go up as a result of this and jobs. Come on, the thing hasn't even kicked in yet. Are you willing to give it a chance?

GORKA: More than a million people, more than a million people in less than a year have been taken off food stamps. Suckling on the government teeth and come back to work. How can you not be thankful that that is happening?

TERRELL: OK. You're changing the subject. I want to stick --

GORKA: You say jobs.

TERRELL: You're making a massive assumption that these corporations are not going to buy back their stock. It's to their incentive to buy back their stocks. The executives will get huge bonuses. I've studied this. I'll tell you right now, you can't guarantee they'll give them jobs.

WATTERS: Leo, you're the only one that can complain about American workers getting $1,000 bonus checks. How is that a bad thing? Why can't you say it's good?

TERRELL: I want jobs. I don't want tip money. I want a job.

WATTERS: OK.

TERRELL: I want a job. Promised jobs.

WATTERS: Leo, you must be living large. I've never tipped a G.

TERRELL: You have to live in the real world. I'm sorry. Let's not confuse a bonus with a job. Let's not confuse a bonus with a job.

WATTERS: I think let's see how it plays outs. Leo, tipping $1,000? I need to come work for you.

TERRELL: Bring me back in 12 months and let's see how many jobs were created.

WATTERS: All right. I have to go. Guys, thank you very much.

While Trump keeps winning, the Russia investigation is running into some real turbulence. We'll get the inside scoop from a congressman that was just grilled behind closed doors, the top FBI official at the center of the latest controversy. Why the spotlight may be shifting to Hillary Clinton. Stay tuned.

(COMMERCIAL BREAK)

WATTERS: With the special counsels Russia probe will return next year, but now it's the FBI that is coming under mounting scrutiny and for unexpected reasons. This week, FBI Deputy Director Andrew McCabe went before two House committees behind closed doors for official grillings over the Russia probe.

But it's the FBI's handing of the Hillary Clinton e-mail scandal that is suddenly coming into sharp focus. Congressman Matt Gaetz joins us from Florida with new information about his Judiciary Committee meeting with McCabe yesterday. Welcome, Congressman. So, what happened behind closed doors and what are you allowed to say to us?

REP. MATT GAETZ, R-FLA.: Well, Jesse, this is the first in what will be a series of confidential interviews that we'll be having with key witnesses that have front row seats of the exoneration of Hillary Clinton, which seems to depart from the standard practices and procedures.

So, I can't share with you the specific questions or answers. I can share with you my reactions to them. I can tell you three things that have been confirmed for me. First, Hillary Clinton absolutely got special treatment. Her process departed from the standard process most Americans would face.

Second, she received that special treatment because she was a candidate for president. No other reason. Third thing, that we absolutely know there were people in the highest levels of this government that were doing everything possible to make sure that Hillary Clinton didn't face consequences.

Some of those very people have now migrated over to the Mueller probe and persecuting the president of the United States without a valid basis. That's why the work we're doing in the Judiciary Committee is so important.

WATTERS: All right. That's very interesting. So, we all know that Hillary got special treatment from the tarmac meeting to riding an exonerating letter before exonerating her to softening the language to take out the criminality to -- I mean, she went in for an interview and wasn't under oath. So, we know that happened. At this point, what are you going to do about it?

GAETZ: Well, we have to change the laws so that this can never happen again. We have also got to find out whether or not some of the bribes paid to the Clinton Foundation are actively disrupting the policies and priorities of the United States on a going forward basis.

Until we have a thorough investigation of the potential bribes that the Clinton Foundation took and then the actions that fell as a consequence of those bribes, I fear that we won't truly know the depth of the corruption in the last administration.

But we've got the change the laws so that never again can we have a circumstance where someone gets special treatment because of their political status or because they're a candidate for high office. That is not the blind lady justice that we promised the American people in this country under our constitution, Jesse.

WATTERS: I agree with that 100 percent. So, are you calling for a new or second special counsel to investigate Hillary and the foundation and all of that?

GAETZ: Well, for five months now, Jesse, over 20 members of the Judiciary Committee have been calling for a second special counsel to investigate the Clinton Foundation, the e-mail server and the entire handling of that process.

But what is so troubling to me is that the attorney general has been sitting on his hands despite the fact that we've had these calls for a second special counsel. The attorney general hasn't done it.

It's just a double standard when you have the special counsel that has a limitless budget, limitless authority persecuting the president and we are not looking at the real crimes from the real criminals.

WATTERS: OK. So, can I ask you? I know you're not allowed to say everything. Did you ask McCabe about that meeting where it was the FBI agent who hated Trump and his mistress in this meeting and they talked about protecting the country from a Trump presidency and taking out an insurance policy if Trump was elected president? Did you ask about that?

GAETZ: Well, Jesse, I can't go into the specific questions asked and the answers provided. But I will say when you look at the commentary from the mainstream media, they're spinning because they have no idea how to explain it. But the American people --

WATTERS: I'm going to assume that you asked about that because that is huge. I would assume that you did. Now, this is just breaking. I don't know if you know about it, but it looks like James Baker, who was the top lawyer in the FBI, was just reassigned. Turns out, they found out he had contact with this left-wing outfit, Mother Jones and David Korn (ph). Two weeks later, they break the dossier story. It seems really suspicious.

GAETZ: Yes, I don't think James Baker is a lawyer in this fact pattern anymore. I believe that Mr. Baker is a witness because he's a witness, I think he's very well may be one of the next people called before one of these committees conducting a fact-based investigation.

Because certainly, we have had at the very highest levels of the FBI and the Department of Justice a number of contaminating events that erode the American people's confidence in these institutions.

WATTERS: It seems like the more people investigate, the Democrats look guilty or corruption, not Trump. We'll see. Anything can happen. Congressman Gaetz, thanks for your service.

GAETZ: Thank you, Jesse.

WATTERS: All right. So, with all these key players suddenly coming under scrutiny, could the Russia probe backfire on Democrats that were so sure it would sink Trump? Up next, we are going to look into what to expect in 2018. Stay right there.

(COMMERCIAL BREAK)

WATTERS: Welcome back to "The Ingraham Angle" special, the Trump agenda in 2018. Democrats still think the ongoing Russia investigation could be their ace in the hole against the president next year, but it could boomerang on them.

A Wall Street Journal poll released shows the public is souring on Mueller. His positive rating has inched up from 24 to 28 percent since June. His negative numbers jumped from 11 to 21 percent in the same period.

And no wonder, with all the bitter anti-Trump bias revealed among Mueller's top investigators and key players at the FBI and Justice Department. Some Democrats are stuck in utter denial.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: So, when Special Counsel Mueller was appointed, Republicans praised him. Republicans like Newt Gingrich and others. Now they're attacking him. The only thing has changed, two guilty pleas and two additional indictments. So, they're afraid of the facts that Mueller is uncovering. So that's not a good justification to smear his team.

(END VIDEO CLIP)

WATTERS: So, evidence of blatant anti-Trump bias by investigators is not justification for questioning the probe? Are you kidding me? Let's examine that with political analyst and former Secret Service agent, Dan Bongino, in Palm City, Florida, and in Washington, former Ohio State Senate Minority Leader Capri Cafaro.

All right, Dan, this is just Republicans working the refs. You know, when a coach yells at officials and then next time they maybe get a better call. I don't think there's anything wrong with criticizing if the Mueller investigation is doing something wrong, do you?

DAN BONGINO, FORMER SECRET SERVICE AGENT: No. Jesse, why should we criticize? Let's walk through what happened here. OK? You had a man at the top in Jim Comey who admitted to initiating, trying to start this special counsel by leaking information to the press.

You had number two, Andy McCabe, whose wife was running as a Democrat in the state of Virginia and taking money from the Clintons. You had a number two in charge of the investigation, Peter Strzok, talking with his mistress about the insurance policy in case Donald Trump is elected.

Let's get this straight. We're not supposed to ask questions about any of that? That's only in the liberal bizarre fantasy land. In the real world, you are darn right we're going to ask questions and we are right to do so.

WATTERS: So Capri, the congressman says the Republicans like Mueller and now they're changing their tunes. I think Republicans have changed their tunes because of what Dan said. I mean, they're hiring a bunch of Clinton donors and lawyers and having to fire guys from trying to talk trash about Trump. It makes sense why his numbers are going down. It's his fault.

CAPRI CAFARO, FORMER OHIO STATE SENATE MINORITY LEADER: I mean, I think you're talking about two separate issues. One is, are Republicans in Congress souring on Bob Mueller or is the American public souring on him. At the top of the segment, you mentioned that "Wall Street Journal" poll.

WATTERS: Right.

CAFARO: You know, basically, what that looks like people don't know who Bob Mueller is. If you have 21 percent of the people saying that they have an unfavorable and 28 percent saying favorable, that means less than 50 percent of America has any idea who Bob Mueller is.

WATTERS: I would agree with that because if I asked the first ten people who he is, maybe three or four would know. Dan, does that say that the public doesn't care about the Russia story and has nothing to do with jobs, wages or national security?

BONGINO: Yes. I'm personally glad that Looney Tunes Democrats like the ones in Congress are wasting all their time on this conspiracy theory Trump-Russian collusion nonsense. Because while that happens, we've been dumping red tape, appointing great stellar conservative justices. We've been cutting taxes. So, listen, Ted Lieu, Adam Schiff, knock yourselves out. Have a filled day --

CAFARO: They're both from California, right?

BONGINO: Yes.

WATTERS: Exactly. The people out there in California really dislike the Republican Party. But let me get back to you, Capri. It seems like Mueller is basically the Democrat candidate for president. It's the only person that can stop Donald Trump's re-election and the Democrats are putting their eggs in the Mueller basket. If he clears everybody else after this, they have nothing.

CAFARO: Look, I think that there's a camp of Democrats out there that hope for the worst, that OK, if President Trump fires Bob Mueller, which he said he's not going to do and he does it, it opens the door for obstruction of justice and they can go after impeachment and go down that rabbit hole --

WATTERS: I think the Democrats want President Trump to fire Mueller because that's all they talk about.

CAFARO: There's a camp out there that thinks that. Another camp and I belong to the other camp that believes the best path for Democrats is to show they're the adults in the room, to show that they can govern. I'm from Ohio. We care about jobs.

Certainly we want to make sure that the Russia investigation is done and the American public deserves answers in a fair manner about that issue, about what happened in the 2016 election. Ultimately the Democrats, the way that we win, is when we turn people out actually as we have done in some of the more recent elections in 2017. But we need to have a message to show what we offer to the American public.

WATTERS: Yes, I don't really know what the Democrat message is on the border, on ISIS. I do know that they think Trump is a traitor. That's about it. Go ahead.

CAFARO: Come to Ohio. And I think that there will be some folks --

WATTERS: I'm just talking about, you know, congressional Democrats. But go ahead.

BONGINO: No, Jesse, the Democrats message in 2018, I love what they're going to run on. Give us more of your money, give us back your healthcare, and let us send your kid to a crap school that is failing. That's going to be the message. And by the way, we're going to continue to investigate a Trump-Russia investigation, which by the way has produced zero, zero. That's a doughnut, the absence of value, has produced no evidence of Russian collusion at all.

WATTERS: Very interesting, Capri. So this started off as a collusion investigation or an obstruction investigation. I mean, when -- we just looked at the segment before. There's more evidence of Democrat collusion or Democrat obstruction than there is anything that Donald Trump or his campaign has done, right?

CAFARO: I don't know who you're asking that question to. But I think that again --

WATTERS: you, Capri.

CAFARO: The American public deserves answers regardless of party whether it's Democrat or Republican.

WATTERS: I agree with that.

CAFARO: So you know, if there's smoke and fire, you know, we need to have an impartial investigation regardless of the party.

WATTERS: Listen, I think we'll just wait to see how this plays out. Could take months, could take years. But you know, I think we'll finally get to the truth hopefully. Guys, I have got to run.

2018 is set to become a make or break year for President Trump's immigration agenda. Should he use the looming fight with Democrats over DACA's leverage to achieve his goals? That debate when this "Ingraham Angle" special returns.

(COMMERCIAL BREAK)

WATTERS: Welcome back to this "Ingraham Angle" special, "The Trump Agenda in 2018." One of the most burning issues next year will be what kind of DACA deal the president may strike with congress. Many conservatives including much of the president's base adamantly oppose amnesty for the illegal immigrants called the DREAMers. But will the president use a DACA deal as leverage to implement the rest of his immigration agenda such as ending chain migration and building the wall?

Let's bring in our guests, former Nevada state GOP chair Amy Tarkanian is in Las Vegas and documentary filmmaker and radio host Clay Cane is here in New York. Clay, we'll start with you. Schumer and Pelosi just getting hammered by the left for not using the DACA deal as leverage to shut down the government. You think that is justified?

CLAY CANE, RADIO HOST: I think it's complicated. I understand why folks to the left are upset, but we need more time. The truth of the matter is this is all started, this madness, because Trump is so anti-immigrant.

WATTERS: Wait a second, he's married to an immigrant.

CANE: No, but he's had a whole platform against immigration and him --

WATTERS: Illegal immigration.

CANE: Illegal immigration. Even folks that are legal like the horrible terrorist attack that happened here in New York City, he is now using that as an excuse to build his wall policy.

WATTERS: So you mean end chain migration and the lottery.

CANE: But he was a legal immigrant.

WATTERS: Right, through a bad system.

CANE: That's part of our system.

WATTERS: Right, and he wants to change it.

CANE: But the point is that Trump has really caused this debasing of our culture when it comes to immigrants in this country, illegal immigrants or not. And I really feel that if it wasn't for his disgusting rhetoric that we wouldn't have this implosion within the Democratic Party. It's going to take time.

WATTERS: OK, Amy, set him straight. I think the president wants to save the DREAMers. That's why he cut this deal in the fall with crying Chuck and Nancy, correct?

AMY TARKANIAN, FORMER NEVADA STATE GOP CHAIRMAN: Absolutely. You know, it's not disgusting rhetoric. We have somebody who wants to protect the U.S. citizens. We have somebody who wants to make sure that these dreamers are taking care of correctly. We're talking about human lives. You can't just sit there and put people who have --

CANE: What does "correctly" mean?

TARKANIAN: -- who are here legally and doing things correctly. You're not superior to those who are U.S. citizens doing the right thing.

CANE: I'm curious to know what correctly means. With all due respect, Amy, Amy, her and her husband paraded their political career on being anti- immigrant. Her husband --

TARKANIAN: We're not anti-immigrant at all.

CANE: Her husband went as far to say that Hispanics in Nevada should be profiled just in case somebody --

WATTERS: Let's leave her husband out of it. Her husband is not on the show. So let's leave the husband out of it out of respect.

CANE: So they thought that was unconstitutional in Nevada. So she's only for the constitution if it --

TARKANIAN: Clay, we're definitely not anti-immigrant.

CANE: You want racial profiling --

WATTERS: Just let her finish.

TARKANIAN: -- came here correctly. So we're for making sure that people - -

CANE: Racial profiling.

TARKANIAN: We're a nation of laws. If you have --

CANE: We are a nation of laws. And racial profiling was unconstitutional according to the Nevada Supreme Court.

WATTERS: We're getting sidetracked here. Clay, so if the Republican Party puts building a wall which includes saving the DREAMers, will Democrats vote for that?

TARKANIAN: Building a wall is -- the majority of folks here --

WATTERS: Will they vote for it?

TARKANIAN: The majority of folks who are here illegally are here because of overstayed visas, not a wall. So the whole idea is just ridiculous. I feel like Trump isn't really informed on how immigration works in this country. A wall isn't going to do anything. If you want to have stricter immigration laws, that's fine. But to kick out, when it comes to DACA -- on my radio show I interviewed somebody who found out he was illegal when he was applied for college.

WATTERS: I think you're a little misinformed about what the president wants to do with the DREAMers.

TARKANIAN: I think you are, too.

WATTERS: The president says he wants to save the DREAMers and make sure they're legal and not kicked out. That's why he cut the deal with Nancy and crying Chuck.

Let's move on, though. I want to get to another topic. We have a report that just came out, Amy, that says I think 90 percent or something like that of, 92 percent of the inmates in federal prison, they -- a lot of those people are illegal immigrants. And why are that there first of all? And second of all, it's not just because they have overstayed their visas or because they got picked up on an immigration visa. A lot of it is through felonies.

TARKANIAN: Sure. Well, you know, the interesting thing is, you mentioned the wall. You know, I think since Election Day took place, you've now had roughly the flow of two-thirds of illegal immigrants actually -- it's cut down by two-thirds. And that's without the wall even being built. That's with a president who with his rhetoric is very strong, with his tone --

WATTERS: So it's a verbal wall. Trump has put up a verbal wall. I understand. The rhetoric is important. What do you think about that? You have to be happy there's less illegal immigration.

CANE: Illegal immigration has gone down. It's being going down for a few years.

WATTERS: You think that's a good thing, Clay?

CANE: No, I do think it's a good thing.

WATTERS: You're not pro illegal immigration?

CANE: No, I'm not saying anybody should come in this country -- you should come in legally --

WATTERS: So you want to prevent people from coming here illegally?

CANE: Yes, absolutely.

WATTERS: So would a wall help do that?

CANE: I don't think a wall -- first of all --

WATTERS: Why not? A wall stops people from crossing.

CANE: First of all, like I said, Jesse, if you were informed, the majority of folks are here are because of overstayed visas.

WATTERS: There's millions of illegal aliens that cross the border --

CANE: A wall is insanely expensive. We already have a horrible tax bill - -

WATTERS: When have Democrats have ever cared about the cost?

CANE: That's going to give us more of a deficit. I don't think we need a wall. And I also don't think we need to kick out people that are already here. Every part of American life is affected by immigration.

WATTERS: Listen, it's funny. We have got to run. It's just funny that the only time the Democrats care about government spending is when it comes to protecting the borders. But guys, I have to run.

CANE: Merry Christmas, Jesse.

WATTERS: Merry Christmas.

While the fate of the wall and many border issues are still up in the air, a muscular Trump foreign policy is scoring some big wins overseas. We'll look at some of the president's foreign policy challenges in 2018 including what to do about the little guy with the nukes who Trump said he would never call short and fat, never.

(COMMERCIAL BREAK)

WATTERS: Welcome back to this "Ingraham Angle" special, "The Trump Agenda in 2018." Foreign policy challenges will again loom large, China, Afghanistan, revisiting the Iran nuke deal and pursuing peace in the Mideast. But the real flash point is likely to be the brewing confrontation with North Korea over its nuclear ambitions. On that score Trump got a big win at the U.N. today and celebrated with this tweet, quote, "The United Nations Security Council just voted 15-0 in favor of additional sanctions on North Korea. The world wants peace, not death."

But the administration's critics just can't handle the sight of the U.S. reasserting itself on the world stage such as recognizing Jerusalem as Israel's rightful capital.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I saw Nikki Haley yesterday actually threatening like a mob boss, threatening member states of the United Nations, you either be with us on this nonbinding resolution or else we will always remember and we may yank humanitarian aid out of the mouths of the most truly disadvantaged on the planet.

(END VIDEO CLIP)

WATTERS: Mob boss, is that how the left sees a strong woman in charge, and making clear to other countries that the U.S. will no longer turn the other cheek?

Let's bring in our guests, Jim Hanson of the Center for Security Policy and former State Department official David Tafuri. Jim, I want to just start with the sanctions that we just slapped on North Korea, cuts fuel imports by about 90 percent, forces about 100,000 North Korean workers who are working in other countries to return back, that really dries up their hard currency, and then it tightens up North Korean shipping inspections. China and Russia went along with that. Is that tough enough?

JIM HANSON, SECURITY STUDIES GROUP PRESIDENT: It's about time. And I think we are on last chances for Kim Jong-un. At in point, we've done all the strategic patience as Obama called his policy that we can afford to. So President Trump said you have one chance to do this. Russia, stop dealing on the black market with them. China, stop propping them up, and let's see if there's any chance at all that diplomacy and sanctions will stop him from his nuclear ambitions. If it doesn't, the world now knows that President Trump means what he says and there will be consequences, consequences that will leave parts of North Korea as smoking rubble.

WATTERS: David, you think little Rocket man is going to get the message or not?

DAVID TAFURI, FORMER STATE DEPARTMENT OFFICIAL: I hope so. This is a victory for the world and for the U.S., which led this Security Council resolution and pushed it through, as you mentioned, 15-0, with all five permanent members supporting it.

WATTERS: You mean the mob boss, Nikki Haley, gets some credit?

TAFURI: Well, you know, you're mixing up two different things. The Security Council resolution, the action in the U.N. on Jerusalem --

WATTERS: I know, but she's still the U.N. ambassador.

TAFURI: They're two different things, and her actions were different in each case. And I applaud her actions on North Korea. And she really took leadership there and it's a big success.

On the Jerusalem thing, it's right to criticize her tactics a little bit. Of course the U.S. has every right to move its embassy if it wants to do that, but that wasn't a positive thing with respect to advancing the peace process between Israel and Palestine. And I wish the president had a plan for that, and I wish Nikki Haley was talking about that rather than just moving our embassy. That would be more productive.

WATTERS: I think he has some sort of plan. Isn't he sending Jared Kushner over there, Jim? I think he is going to straighten everything out, right?

HANSON: He's got a plan, and it's already in play. And the big change has been the new crown prince, Mohammad bin Salman of Saudi Arabia, is going to will be an ally in this as opposed to an obstacle. So the first step he took was saying we're going to stop this delusion that hasn't helped anyone any time of pretending the capital of Israel is not Jerusalem, and we're going to put our embassy where it belongs, sending a reality check to the Palestinians and to everyone who has been helping them obstruct peace for all of these years. So that was a great start to these negotiations, and the plan will follow on from there.

WATTERS: And David, another new development this week, which was pretty interesting, I think the president wants to send lethal arms to our ally in Ukraine, something the Obama administration never wanted to do for our ally. They just wanted to send food. That's pretty tough when it comes to confronting Russia. Trump is a big Russia puppet. Why is he acting so tough on Russia all of a sudden?

TAFURI: Jesse, I couldn't agree with you more. This is a very substantial development and I applaud the Trump administration for finally doing this.

There's a lot of dissonance in the Trump policy towards Russia and towards Ukraine. Remember, it was the Trump campaign that pushed for changing the Republican platform in July at the Republican convention, and they removed the provision for arming the Ukrainians from the platform. So now he's reversed that, and that's a positive. But there's very little else that he's done to take a stance against Russia. He still seems to support Putin and Russia at every chance that he has.

And so I would like to see a statement from the president saying that Russia should come -- should get out of eastern Ukraine, that Russia should not have taken Crimea, and that the U.S. will not tolerate expansionism by Russia in Europe, and that the U.S. is going to stand with its NATO allies in preventing that. We haven't heard that from President Trump. But I agree with you, this change is welcome.

WATTERS: Sure, now, listen, I agree with you somewhat, but to say that Trump has been soft on Russia. He sent about 50 tomahawks missiles into Russia's friend's backyard when he nailed Bashar Assad for the chemical weapons violation. And not the other proxy, Iran, the nuke deal is in the crosshairs. So I don't think he's been really that soft on Russia. Jim, why don't you take it from here?

TAFURI: He hasn't done anything else in Syria to take a stance against Russia. In fact he's moved towards Russia's policy in Syria. He's pulled back support for the moderate forces that are fighting against Russia, Iran, and Assad.

WATTERS: He also wiped out ISIS on the battlefield in Iraq, so that's a pretty good thing. Jim, I'll give you the last word.

HANSON: I think when President Trump managed to go ahead and, as you mentioned, take out a Russian airfield in Syria while ordering chocolate cake with the Chinese president, that sent a pretty good message. And right now what we need is a way to get to peace. If he's got to make a deal with the Russians to make that happen, good. Better that than more fighting.

WATTERS: Guys, we have to run. And Merry Christmas to both of you.

TAFURI: Merry Christmas.

HANSON: Back at you.

WATTERS: Vice President Mike Pence delivers a special holiday message from President Trump to our troops serving in Afghanistan right after this.

(COMMERCIAL BREAK)

WATTERS: And we end with a note of appreciation for those who keep us safe. Many of us will be spending this Christmas weekend with loved ones, our family and friends. But many of the 450,000 men and women serving overseas in armed forces and protecting our nation won't have that pleasure. That includes 11,000 troops still stationed in Afghanistan. Since they can't go home for the holidays, Vice President Mike Pence came to them on a secret trip under heavy security to deliver a special message.

(BEGIN VIDEO CLIP)

MIKE PENCE, VICE PRESIDENT: Before I left the Oval Office yesterday, I asked the president if he had a message for our troops here in Afghanistan. And he looked at me without hesitation from behind the resolute desk, and said tell them I love him. On behalf of your commander and chief and all the American people who pay a debt of honor and respect and gratitude to each and every one of you for your service and your sacrifice, give yourselves a round of applause.

(END VIDEO CLIP)

WATTERS: Pence also said it's something so often overlooked, thanking the troops for being, quote, "The world's greatest force for good." And we thank them too. Merry Christmas to all of our men and women serving our country overseas.

And lastly, tomorrow don't miss my show, "Watters' World." I will be speaking with the man, the myth, the legend, the Mooch, Anthony Scaramucci, the former White House communications director, so hold on to your hats. It airs at 8:00 p.m. eastern right here on FNC. Plus I'll be hosting Fox News' "All American New Year's" special, doing the big countdown to 2018 on New Year's Eve. Kennedy is going to be my partner in crime.

And that's all the time we have for tonight. Thanks for watching this "Ingraham Angle" special. From all of us here, have a very merry Christmas. Shannon Bream and the "Fox News @ Night" team are up next. Goodnight from New York.

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