Rep. McCarthy addresses GOP concerns about tax reforms
House majority leader discusses moving the legislation forward on 'Sunday Morning Futures.'
This is a rush transcript from "Sunday Morning Futures," October 29, 2017. This copy may not be in its final form and may be updated.
MARIA BARTIROMO, HOST: Good Sunday morning everybody. We have a huge week ahead. As soon as tomorrow, there may be an arrest in the Robert Mueller Russia probe. House Republicans are expected to release their tax plan on Wednesday, and congressional investigators take a deeper look at the Obama era Uranium One deal.
Good morning everyone I'm Maria Bartiromo, welcome to "Sunday Morning Futures." The Wall Street Journal reporting that at least one person has been charged in Robert Mueller's Russia investigation, an arrest possibly coming tomorrow. Where does the probe go now? I'll talk with House Majority Leader Kevin McCarthy, House Counter Terror, and Intel Subcommittee Chairman Peter King, and former Arkansas Governor Mike Huckabee coming up.
I will also speak with Congressman McCarthy about the Republicans' Tax Plan set to be released this Wednesday, what are the remaining sticking points, we'll talk about it coming up.
Plus the road ahead for Saudi Arabia part of my conversation with his royal highness, the future king, Crowned Prince Mohammad Bin Salman and what may be the start of a revolution of sorts there. All that and a lot more coming up right now as we look ahead on "Sunday Morning Futures."
Well, tax reform will be the talk of the town this week in Washington as the House Ways and Means Committee prepares to release its tax plan on Wednesday. The measure will then go through a markup session before advancing to the floor. House leaders also hoping to address concerns expressed by the 20 GOP lawmakers who voted "no" on the budget bill last week.
Joining me right now, Republican California Congressman and House Majority Leader Kevin McCarthy. Great to see you, Congressman.
REP. KEVIN MCCARTHY, R-CALIF., HOUSE MAJORITY LEADER: Well, thanks for having me on today.
BARTIROMO: Thank you so much for joining us. Wednesday is a big day. Can you give us a sense of where we are in terms of this tax bill and what are the sticking points that remain?
MCCARTHY: Well, first of all, we have to show how far we are on the tax bill. The House just took up the Senate budget so we could move even two weeks faster to get tax moving. We have the criteria, we want it to be simple, we want it to be pro-growth and we want to help the hard-working Americans. So we double the standard deduction, so a family -- a couple may now get their first $24,000 tax-free. You want to lower that corporate rate down to 20 so we can compete around the world. Latest study show that means 4000 more dollars into the household income by getting that up. Small businesses create more jobs, lower that to 25 percent, the lowest it's been in 80 years, and simplify it so people could actually just fill it out on a postcard. Keep the home deduction, keep charitable, and expand child tax credit.
BARTIROMO: There is a -- there is a point of debate obviously with the state and local income tax deduction and that being eliminated. What can you do to appease those Congressman and Congresswoman in those high tax states like New York, Peter King has already said I cannot vote on this.
MCCARTHY: Well the one thing that I'm from one of those and I'm even a higher one. I'm from California.
BARTIROMO: Right.
MCCARTHY: And a lot of that happens to do with the state politics more liberal raising taxes and having the federal government write it off. What you really want to look at and we've been sitting down with all those individuals, Kevin Brady numerous meetings and there's been a lot of great ideas they proposed looking at -- dealing with the property tax portion. And the one thing you'll have to remember, if you double the standard deductions, if you lower the rates and you eliminate AMT, if people look at the overall tax plan and they live in those states, they're going to like the final outcome of what it deals with, especially if you're that middle- income hardworking American, you're going to get a tax savings in the process.
And if you're eliminating the AMT, that really offsets what people are doing when it comes to that. So we're looking at property tax because some of the states have very high property tax and I think Kevin Brady is going to have something coming forward that the majority of those members are going to like.
BARTIROMO: That's not enough though for Peter King. I mean, you could retain the property tax deduction but he continues to say that New York pays into the federal government more than it's getting back. That in fact, even Governor Cuomo tweeted just recently under this tax plan, every New Yorker will get a tax increase, so how could the President say this is the biggest tax cut in history when in fact a big portion of the country is going to get a tax increase by eliminating that deduction?
MCCARTHY: Well, there's two points where you have to look at. First, Nancy Pelosi said the same thing and she just got two Pinocchios because it's not true, because it actually helps the middle class. Secondly, I come from California. The argument that you're not getting back your federal money? Well first of all, California and New York, they have to live within their means. Federal government borrows so they spend more than they actually bring in. Secondly, what you really look at the biggest payments that are going out are to Medicare and Social Security, so if you come from a state that has an old population, you're going to get more than what you come from, more than what you pay in.
I like the idea of California being more prosperous and being a younger generation. That gives us a better future. So you really got to compare apples-to-apples, that's an argument that doesn't play when you're talking about state and local tax deductions. If you're lowering the rate, letting people keep more of what they earn. So if I go from giving the first 12,000 tax rate to 24, that helps me save to buy a new home, that helps me to determine whether I want to send my kids to private school and others. And then I lowered the rate you're paying from 10 percent to 0, from 15-12, I'm actually keeping more of my own money. So it offsets any difference when it comes (INAUDIBLE) and actually lets me keep more and grow the economy.
BARTIROMO: Is there a way that you could sort of adjust that to a cap on certain incomes so if you make more than $200,000 then you will not be able to deduct that but if you make below$200,000 you can, in fact, keep that deduction or you just not generating enough revenue to put caps and (INAUDIBLE)?
MCCARTHY: Well, we want to look at overall. And the one thing you have to remember, only about a third itemize, after we raise the standard deductions, fewer will itemize in the process too because they have a better savings. We were looking at the property tax. There's a lot of different ideas going forward. I say let's look to see what Kevin Brady brings out on Wednesday, but the one thing that is very important, those members that come from the state they have been so productive in expressing there what their districts are looking at. We've been looking at the numbers, they've been expressing what they want to see, and I think at the end of the day their voice is being heard in what we're able to put forward for them.
BARTIROMO: Do you want to change contributions into a 401k?
MCCARTHY: No, I think 401k is very important. What we are going to find out in ours, we're going to raise the amount that you could put in. But more than individuals can invest their own money, the better off we are in the long term. They have more capital, they can protect themselves in the future and they're not looking to govern it.
BARTIROMO: I mean, is that a real significant amount of money that you can save? I recognize you're talking about a budget that was half a trillion dollars overspending, the next year's budget half a trillion dollars overspending. You need to look for as much money as possible to pay for these tax cuts, but will you really get sizable money by doing anything to change 401k?
MCCARTHY: No, look, the way we're going to deal with 401k, there's two different ways ways to do it. Einstein said there was only one miracle in this world, the time value of money. So the more that you could put away earlier, the more you'll have later. And if you can do it and not be taxed later on, there is a way to make Americans more self-insured, have greater resources, so the way we'll look at the 401k, we will protect it, we'll expand the amount that you can invest but we'll also give you an option to actually not be taxed later in life, not to have that tax burden hovering over you in the future but actually have greater income in the future.
BARTIROMO: Some of the issue is that you've had all of these surprises in the budget right? I mean, you had to give money, the U.S. gave money to Puerto Rico, you know, Texas, Florida, California wildfires. You're just back from Puerto Rico, tell us about what you saw?
MCCARTHY: You know, I went down to the Virgin Islands, to Puerto Rico and Key West. It was a bipartisan trip. It's devastating because Puerto Rico, we were dealing with even prior to getting hit by two hurricanes. Their grid system is probably the oldest one, the least efficient, and one that we need to not rebuild as is but put anew 21st-century grid system in there. We went further into the interior than any Congressional Delegation --
BARTIROMO: I'm looking at you here on this plane overseeing the Florida Keys.
MCCARTHY: And this is bipartisan so that's the Democratic Whip Steny Hoyer and I, we're actually flying up in the air. That's a Coast Guard plane where they open up the back and they let us hang out to actually look at the damage to get a real view going low about a thousand feet. It is devastating what its caused down there. And what you really want to look at, we would look at certain areas that have been wiped out but the house next door survived perfectly because of new building standards. The building standards matter. So when we go back and make an investments here, we should prepare ourselves that there'll be a future hurricane sometime in the future. It's happened before and it will happen again. But we should prepare ourselves, so we're not repaying the exact same thing.
BARTIROMO: Yes, I mean, in terms of more money going out, I mean, can you actually now look out to say OK this is what we're spending or you have no idea, these are open questions in terms of spending?
MCCARTHY: Well, we're working closely with Mick Mulvaney at OMB, we're working closely with the governors in those states as well in their territory. We want to make sure that it's effective, efficient and especially transparent. We need accountability but we want to do what's right. but we want to help these individuals just as any other American when they're injured as well.
BARTIROMO: Let me end where it began and that is tax reform. Lindsay Graham this week said it's going to be a different Republican Party if we don't get this done. If you don't get this done by the end of the year, are you expecting that you lose the election in 18?
MCCARTHY: Look, you should not vote based upon whether you think you win or lose an election. Just do what's right for the American people. Put people before politics and the one thing I've watched in the last eight years, growth has been so low. It's some of our worst years ever. Bill Clinton's worst year, his growth year was higher than Barack Obama's best year. We just went through our second quarter of having 3 percent growth. President Trump has done an amazing job eliminating a lot of this regulation, cutting the federal register, getting growth back up there. Tax is the part that will keep more money in Americans hands, getting small business moving again, and more jobs created. At the end of the day, I'd love to run on that.
BARTIROMO: I've got -- I've got a text from one of the congressmen who said I'm hearing bits and pieces of this tonight while I'm at dinner. And there's a story on Politico that says GOP tax bill shrouded in secrecy. Are you going to have another situation where we saw in health care where nobody knows what's in this bill until Wednesday, and then there's all of these fightings? You've got the real estate lobby saying look, we don't want you to make all of these changes in terms of the real estate business. How are you dealing with all of the lobbyists?
MCCARTHY: That is just simply a Democratic talking point because think of this. We put our framework out there before the election. We did a conference all day where every member came in and we walked them through it. We have put out our postcard to the American people. This has been out there for a number of months sitting there. And what's more importantly here, those that want to keep their loopholes, yes they're going to argue and they're going to pay lobbyists a lot of money, but this is exactly why this President won the election, because he's listened to the middle class. He's fighting for the middle class and that's what this plan will do. Create more jobs, put America competitive again around the world and think of those trillions of dollars that will come back and invest in America instead if investing in other countries.
BARTIROMO: What if you don't get those Congressmen from the high tax states? What if they vote no on the tax bill? Do you have a major problem here that you need to appease some of these people to actually get their vote?
MCCARTHY: They've had really good arguments. They've been very constructive in talking about trying to find the best policy going forward. And their ideas are going to be put into this tax bill. And I think when you see it roll out, you'll see that their input made a difference, especially there. And anybody that's living in those states, look at the entire plan.
BARTIROMO: Because the 20 percent corporate rate is a serious decline, and that's going to probably empower businesses to spend money and invest in jobs.
MCCARTHY: The latest study comes back and says conservatively $4000 for a household. And think of this. If your rate is lower if you get to keep more of what you earn, double tax-free at the very beginning, you're collecting more money into your pocket. So if someone's picking one item in the tax bill, look at the whole bill as a whole and you'll actually save money.
BARTIROMO: So is the 20 percent rate, is that in jeopardy or are you getting mostly the agreements on that?
MCCARTHY: We're getting agreement on that.
BARTIROMO: That's terrific. Real quick Congressman on Robert Mueller' investigation here, we're supposed to get the first indictment tomorrow. The Wall Street Journal is asking for him to resign. Your thoughts on this investigation, is it still a witch hunt?
MCCARTHY: I don't know where he's going. It brings a lot of questions to mind, especially who he hired at the very beginning, a lot of individual who -- attorneys who played in politics who have given money on the Democratic side. The one thing I do know for sure, let the investigation go where it may. This President won the election solely on it that he connected with the American people, no other influence involved. But the idea of what I've watched with the Democrats have been doing raises a lot of doubt of what they played in this election.
BARTIROMO: It sure seems that way. Good to see you Majority Leader.
MCCARTHY: Good to see you.
BARTIROMO: Great to see you. Kevin McCarthy, Congressman, the Majority Leader in the House. We will take a break. When we come back, more in the Mueller probe in the moment. Where does the case go now? House Intel Committee Member Peter King will join me and talk to the Congressman about that. And then follow me on Twitter @MariaBartiromo, @SundayFutures, let us know what you'd like to hear from Congressman King and the guests this morning. We're looking ahead on "Sunday Morning Futures," we'll be right back.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back to Wall Street Journal reporting that special counsel Robert Mueller has filed the first charges in his Russia investigation. The Journal reporting there could be an arrest as soon as tomorrow. I want to bring in New York Congressman Peter King right now. He's the Chairman of the House Subcommittee on Counterterrorism and Intelligence and a Member of both the Homeland Security Committee and Permanent Select Committee on Intelligence. Congressman, always a pleasure. Thanks so much for joining me this morning.
REP. PETER KING, R-N.Y., CHAIRMAN, HOUSE SUBCOMMITTEE ON COUNTERTERRORISM AND INTELLIGENCE: Thank you, Maria.
BARTIROMO: I've got to get into the salt issue with you on taxes, but first let's talk about this Robert Mueller investigation. The Wall Street Journal out with an op-ed on Friday last week basically asking Mueller to resign. Let's take a look at that headline right here in the Journal and I want to ask you your thoughts on this. It says, it is no slur against Mr. Mueller's integrity to say that he lacks the critical distance to conduct a credible probe of the bureau he ran for a dozen years. Given all of his conflicts, he could best serve the country by resigning to prevent further political turmoil over that conflict of interest. Your thoughts Congressman King?
KING: Let me just say two things. One, I'm on the Committee which is investigating the whole alleged Russian collusion and I've not seen one bit of evidence. We have Michael Cohen, whose President Trump's attorney in this week. He answered every question. I've been there for almost all of the witnesses. There's not one word of evidence linking in any way the Trump campaign to any Russian collusion. And as far as Director Mueller, you know, serious issues have been raised certainly involving the uranium investigations coming up, the role the FBI had in that. Now, I have a great regard for Director Mueller, but I think there are issues here which he's going to have to address because it is going to involve the investigation in what the FBI was doing and not doing at a critical time during our relationship with Russia when he was head of the FBI. So I'm not calling on him to resign but there are issues he's going to have to address and discuss them publicly.
BARTIROMO: But do you think he's going to effectively address the fact that Hillary Clinton oversaw the sale of 20 percent of the U.S. stockpile of uranium and then she was given $140 million to the Clinton Foundation. Is he going to actually investigate effectively the fact that John Podesta's brother Tony Podesta was -- had a lobbying firm, that he was actually lobbying against sanctions against Russia? All of these things are so front and center and yet we're still talking about the potential collusion with the President.
KING: No, these issues that I think Bob Mueller should come forward to the Congress and explain how he's going to address them because it's not a question whether or not the Clintons is you know, what involvement they have with uranium, it's also the fact that he was head of the FBI at a time we've been told an investigation is being conducted by the FBI as far as bribery, as far as collusion involving the Russians and the uranium. And yet, this was approved by the cabinet, by the Treasury Secretary, the Secretary of State and the President. Did the FBI notify the administration, the Obama administration at the time this investigation was ongoing and all of the allegations are being made, and if so what was done as they didn't (INAUDIBLE) us?
BARTIROMO: All right, real quick. Let me switch off to the state and local tax issue that you're really knee deep in. You heard what Kevin Brady just said. Is that going to be enough for you, property taxes that they -- that they will keep that deduction in? It looks like that's what's happening but they're going to keep the state and local deduction to be eliminated.
KING: Well, first of all, let me just tell you, no one has spoken to me on this at all. We had one meeting with Kevin Brady on Thursday and also Steve Scalise. I've heard nothing since then at all from anyone out. Kevin McCarthy did say about the property tax. Again, that is a step forward but by not allowing the state income tax deduction, that has to be fully analyzed because that is a major issue in my district also and throughout the state of New York, so this is coming out on Wednesday. They've had nine months to put it together. This is a bill which is going to affect generations to come with the impact that's going to happen.
It's been 30 years since the last tax reform. We can't afford to have this go wrong so I'm not going to sign on to anything until a full package is fully examined by economist and analysts in my district. And not just from my district, but also for adjoining districts, the City of New York and New York State with all our economies interrelated and interconnected and to lose that deduction which by the way goes against the principle we've had since 1913 that you don't have a double tax, you don't pay tax on a tax. And that's what's happening here. So I'm still very concerned.
BARTIROMO: Right. So, you've said New York gives $48 billion more than we get back from the fed. You've said that over and over. You're going to vote no then if that deduction is eliminated? Real quick.
KING: Again, I would say the entire package. Right now I'm certainly not on board. This involves the future of my district for years to come. I'm not going to sign on and the fact that we're getting it at the 11th hour raises real issues with me.
BARTIROMO: All right. We'll be right back with that. Congressman King, thank you so much.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. The feud between President Trump and Senators Bob Corker and Jeff Flake heating up as the White House fires back at their criticisms ahead of a critical week on Capitol Hill this week. Will this war of words be a problem for the party on matters like tax reform? Joining me now to discuss that a former Arkansas Governor Mike Huckabee, also a Fox News Contributor. Governor, it's always a pleasure. Good to see you.
MIKE HUCKABEE, FOX NEWS CONTRIBUTOR: Good morning, Maria. Glad to be here.
BARTIROMO: Look, we know how important this tax reform plan is. Kevin Brady will come out with a plan on Wednesday. We know how important the agenda is to the American people, and yet these fights between the President and these Senators, aren't they dancing on or walking on eggshells in terms of impacting the way they vote?
HUCKABEE: I have no idea why Bob Corker and you know, what in the world Jeff Flake has to be thinking when they go after Donald Trump in the midst of this discussion of tax reform
BARTIROMO: Exactly.
HUCKABEE: They may not like him, that's their prerogative. But my gosh, Maria, it's time to do something for the American people and they're acting very selfishly, they're acting very petulantly, and they need to grow up and quit getting in it with Donald Trump. They need to know he's always going to hit back harder than they have the capacity to hit and do something, earn their paychecks, and move on. That's as simple as I can put it.
BARTIROMO: I can totally understand what you're saying but at the end of the day, this is about getting his agenda executed. And if he loses votes because of personal matters, look we know what happened with John McCain. Senator McCain blew up the health care bill because there's a personal fight going on. I mean, I asked the President this when I sat down with him a week ago, when we were at the White House and I asked him how important it is to have better relations with these Senators, watch this Governor I've got to get your reaction to what he said.
(BEGIN VIDEO CLIP)
BARTIROMO: Your supporters say you know, he's got fantastic policies, we want to see this through, but the bickering and feuding actually gets in the way. So obviously the feuding with Senator Corker, I think there's a personal thing going on between you and Senator McCain, do you worry that this bickering and feuding gets in the way of your agenda?
PRESIDENT DONALD TRUMP: No, and sometimes it helps to be honest with you. So we'll see what happens in the end. But I think actually sometimes it helps, sometimes it gets people to do what they're supposed to be doing.
(END VIDEO CLIP)
BARTIROMO: Bottom line here, Governor are they going to need Democrats to vote yes on this tax bill? Do they have the votes?
HUCKABEE: Well I think they do because I cannot imagine that the republican would go and even claim to be a Republican and then vote against a tax cut for all of the people who will benefit, including the people who need jobs, the people who need a better job, who need a better wage, all of whom will benefit from the tax plan. So you know at the end of the day, what are they thinking when they do this? But you know here's what I wonder. Why is it that some of these Republicans are so anxious to get a tongue bath from Charles Schumer and the national media which is what they get if they are willing to go criticize President Trump? Why aren't they more interested in doing what their constituents at home want and look at the numbers. Corker and Flake went to the toilet with their approval ratings in their home states once they decided that they were going to spend their time attacking the President rather than solving the problems of their citizens in their home states.
BARTIROMO: Yes, well let me switch gears and ask you about what's going on with the Robert Mueller investigation, Governor, because tomorrow we may very well get the first indictment. What are you expecting to see? I mean, you saw the sound bite earlier or the clip from the Wall Street Journal that's basically saying look, Mueller is way too conflicted with his relationships within the FBI having run it. He needs to step down particularly since we've been following this witch hunt of an investigation looking for collusion with the Trump administration that doesn't exist and all the other collusion is right in front of our noses with the Democrats.
HUCKABEE: Well I think it's easier to find Bigfoot and Amelia Earhart than it is to find collusion between the Russians and Donald Trump. The fact is, what they really need to be looking at is the $972,000 that Obama for America paid the Perkins Coie Law Firm. Why Hillary Clinton paid them $5.6 million in 2016, that same law firm who in turn funded the Fusion GPS research on the dossier that turned out to be total fabrication. There's some smoke but it's not in the camp of the Trumps. It's in the camp of the DNC and the Hillary campaign.
If Mueller doesn't go after that, then I think that he shows that all those people he hired who were Hillary donors were in fact there as shields for the Democrats in trying to protect her rather than protect America. One important point, Maria that I feel like we've got to focus on. People have said particularly Democrats and a lot of the media people, but then I repeat myself. Well, Hillary is not elected so it doesn't matter. Well, it does matter for the simple reason. This is not about who won the election. This is about who broke the law and broke faith with the American people.
BARTIROMO: That's right. You know, I have a question actually. I mean, this whole dossier, I'm glad you brought up this dossier because I want to know what evidence came from the dossier which now we know is a completely fabricated piece of nothing. Did the -- did the idea to wiretap Trump Tower come from anything from the dossier which now we know was fabricated? This is an important point.
HUCKABEE: Well, yeah, there isn't anything that's come from it. I mean it's proven to be bigger piece of fiction that the entire Harry Potter series --
BARTIROMO: No but they got approval -- they got approval -- but they got approval to wiretap Trump Tower based on what, the dossier?
HUCKABEE: That's a good question that we need an answer to. And if they did, then where in the Obama administration was the push to do the wiretap -- and let's be clear about a wiretap. We're not talking about just tapping a phone but listening in and having surveillance that could be in many, many different forms. But why was that done, to whom it was done, who had a look at it, and how high up did both the approval go and the surveillance actually end up? Those are important questions. And again, forget the politics of it. This is important because anytime an American's liberties, their civil liberties are trampled upon by a federal government who can do pretty much anything they want to do, all of our liberties are at stake and we better never forget that.
BARTIROMO: Yes, it's a great point. Governor Huckabee, it's good to see you as always. Thanks so much.
HUCKABEE: Thank you, Maria.
BARTIROMO: We'll see you soon. Coming up next, the U.S. and the Mid-East, signs of progress in Saudi Arabia letting women drive, declaring war in extremism, I'm just back from Saudi Arabia, I witnessed what could be the start of a revolution. Hear part of my conversation with the Crown Prince, the future King as we look ahead on "Sunday Morning Futures" this morning, back in a moment.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. I am just back from Riyadh, Saudi Arabia where I spent the last week. I witnessed what seems like the beginning of a revolution happening there. I was honored to interview the future King of Saudi Arabia, his royal highness Crown Mohammed -- Crown Prince Bin Salman onstage at the Kingdom's Future Investment Initiative Conference. During our interview, his Royal Highness sent a message to the Saudi people on the world that he is leading a new vision in Saudi. While being interviewed by me, a symbol of freedom in my jacket and pants, not covered up. The country was buzzing about his remarks.
(BEGIN VIDEO CLIP)
BARTIROMO: You have an incredibly beautiful country. You have the resources but you are having radical ideas some might say. Recently you've announced that you will soon allow women to drive. You are allowing foreign investment in your beautiful country. Why now, what triggered this change in thinking?
MOHAMMAD BIN SALMAN AL SAUD, CROWN PRINCE, SAUDI ARABIA: First of all, I don't want to get out of this topic and discuss politics outside of the scope of today but I'll just be very brief. Saudi Arabia was not like this prior to 79. Saudi Arabia and the entire region, you have the awakening project spread after 79 for many reasons. Today is not the right day to discuss them. We were not like this in the past. We only want to go back to what we were. The moderates Islam that is open to the world, open to all the religions.
70 percent of the Saudi people are less than 30 years old and quite frankly, we will not waste 30 years of our lives in dealing with extremist ideas. We will destroy them today. We want to live a normal life, a life that translates our moderate religion, our good customs, we co-exist and live with the world and contribute to the development of our country and the world. This is something that -- there are steps that have taken -- we have taken in the past that are clear. I believe that we will eradicate the rest of extremism very soon, so I don't think this is a real challenge because we represent the moderate teachings and principles of Islam and we have the right. The right is on our side and everything that we deal with, so I don't think that we are concerned.
(END VIDEO CLIP)
BARTIROMO: Wow. That was history in the making. My thanks to his royal highness, Crown Prince Mohammed Bin Salman. President Trump announced $400 billion in new deals at the close of his recent trip to the Mideast in Saudi Arabia included as the two countries move to strengthen their relationship. The Crown Prince respects President Trump. They share a common enemy they both say, and that is Iran. Joining me right now is Ian Bremmer, President of the Eurasia Group, Author of Superpower, Three Choices For America's Role In The World. And do you think that's accurate? They share that common enemy, Iran?
IAN BREMMER, PRESIDENT, EURASIA: Oh, no question, and the U.S.-Saudi relationship which has long been good has gotten stronger under President Trump. Remember, it's unheard of for an American President to first go to Riyadh before any other country and they treated him like a king.
BARTIROMO: And then -- and then go to Israel by the way. Back to back which is incredible. Two weeks ago on this program, Ian, I spoke with Israeli Prime Minister Benjamin Netanyahu and he said the same thing. Listen to this.
(BEGIN VIDEO CLIP)
BENJAMIN NETANYAHU, PRIME MINISTER, ISRAEL: Israel and the key Arab states in the region support what the President has done. You said Israel supports the President, absolutely, but so do Saudi Arabia, so do the Emirates. And you know, when Israel and the Arab states agree on something, you know, you should pay attention. I think this is a historic moment.
BARTIROMO: Is it? Could this be happening?
BREMMER: Well, look there's no question that if you are one of the Gulf states, you don't have big problems with Israel today the way you used to. It's not your priority. You're most concerned about Iran, you're most concern about the rise of terrorism in your own backyard. Israel-Palestine is a long, long forgotten priority and so they're willing to talk to the Israelis behind the scenes much more than before. Netanyahu feels like he's in a very comfortable position.
BARTIROMO: Real quick. Can the Saudis get this done? He's facing pushback actually.
BREMMER: So, it was so interesting, the most important takeaway from your interview there was the fact that the Crown Prince recognizes that his country as it is right now is not sustainable. And we all want him to succeed. The ambition is kind of staggering and breathtaking. Some of the stuff is great and very long overdue but let's be clear Saudi's society is really conservative and the support that exists internationally for the Crown Prince is a little more consistent than what he has within his own country.
BARTIROMO: Let me move on, let me ask you about Asia. President Trump is expected to go in his Far East Trip a week from today, I guess next Saturday. He's going to Japan, China, Southeast Asia. He did $400 billion in deals with the Mid-East when he came back from Saudi and that area. Will he do deals in China? What's most important?
BREMMER: This will be the most important foreign trip of his Presidency to date not only because it's a meeting Xi Jinping, but also because he's heading into Asia with a real crisis, which is the North Korea issue. So number one, everyone wants to know what Kim Jong-un does or doesn't do while Trump is there. Is he going to test a weapon, is he going to -- an ICBM, is he going to test an H bomb and how do the Americans react to that. Number one -- so number one --
BARTIROMO: Good point, wow.
BREMMER: We can really seeing escalation as a consequence of that. Number two is how much time is Trump going to give China to get something done on North Korea before the U.S. starts moving on U.S.-China trade, by far the most important issue for your viewers. So I mean, I think that this is a really big one. I just came back from Tokyo. His relationship with Abe is awesome and certainly that at the beginning of the trip is going to go very well. The rest of this is going to be a lot harder to orchestrate.
BARTIROMO: Do we have -- do we have a policy with China, away from North Korea or is this basically our policy with China is what are you doing to reign in North Korea?
BREMMER: Our policy with China from day one, if you remember -- a year ago people thought there's going to be a trade war between the U.S. and China. When Trump was willing to take the call from the Taiwanese President, all of that. Then, with the Mar-a-Lago visit, things got much better. But they got better predicated not on the charisma between the two men, predicated that there was going to be some support from China on resolving the North Korea issue. And I will tell you, no one believes that either the Chinese can reign in the North Koreans or that they are willing to push the North Koreans suitably hard, cut off all their energy --
BARTIROMO: Oh, it's their biggest training partner. I mean come on.
BREMMER: But nobody thinks that the Chinese are going to cut off all their energy potentially risking escalation or even fragmenting the North Korean regime. So it's a question of time. This is not going to last for four years. At some point, the Chinese will be seen by the Trump administration as having failed on this issue and then we have a problem with it.
BARTIROMO: All right, we'll be watching that. Ian, it's great to get your insight as always. Ian Bremmer there. The House Intelligence Committee meanwhile following the money trail in the Russia investigation. Will questions over Russia come back to haunt the Democrats as we look ahead on "Sunday Morning Futures"? We'll tackle that with our panel. Stay with us.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. OK, the House Intelligence Committee reaching a deal with Fusion GPS -- that's their research firm behind the Trump dossier -- to see the company's bank records. It comes amid revelations that Fusion was first paid to conduct research during the 2016 election on then- candidate Trump by the conservative Washington free bacon and then it was paid by Hillary Clinton's Campaign and the Democratic National Committee. I want to bring in our panel on that. Caitlin Huey-Burns is National Political Reporter for Real Clear Politics, Ed Rollins is a former White House Advisor to President Ronald Reagan and a Fox News Contributor. It is a pleasure to see you both. Thanks so much for joining us. So is the whole Russia thing turning on the Democrats? Explain what's going on right now Ed?
ED ROLLINS, FOX NEWS CONTRIBUTOR: Well, clearly up until this point in time, it's been all about Trump and Trump's people. Now clearly we're finding out this fusion which is an opposition research company, most of former reporters was being paid by the Democrats and by the DNC and by the Clinton campaign who also denied any knowledge of it. At the end of the day, four things is going to happen this week that are going to have big consequences. One is who gets indicted tomorrow out of the Trump world, the second is who has been -- who is the lobbyist in Washington who worked for the FBI as an under -- as confidential informant in all this stuff and that's supposed to be disclosed this week. Then the fusion bank records, who did pay them and what have you, that's the third thing. The fourth thing obviously is the budget -- the budget bill which--
BARTIROMO: Oh, right and then there's that.
ROLLINS: And then -- and then you may have the new Fed chairman, so this is --
BARTIROMO: It's a big week.
ROLLINS: -- this is a week of roller coaster week which is what last week was and obviously, you've had one with your three major interviews with the President, interview the Prince, or the Prime Minister of Israel just as a sidebar.
BARTIROMO: It's been an incredible few weeks for me.
ROLLINS: Good time -- good time to contract negotiate.
BARTIROMO: Listen, in terms of this Russia probe though, let's get to it. I mean, you've got an indictment coming tomorrow but the fact is there's all this other collusion that has occurred. I mean -- and basically -- and this dossier, why do we call it a dossier anyway? I mean, is that just a fancy way of saying this is something a document garbage?
CAITLIN HUEY-BURNS, NATIONAL POLITICAL REPORTER, REAL CLEAR POLITICS: We call it (INAUDIBLE) document.
BARTIROMO: I mean, was it all made up?
BURNS: Well, you know, there are arguments to be made that some of it well pretty salacious obviously. And other elements could have been, you know, it hasn't been completely disproven. I think Republicans have lacked a counter-narrative this whole time to the allegations surrounding Trump and Russia. And so, you're seeing the House Intelligence Committee, you're seeing Republicans say we've had majority in Congress for a while now. Why are we not being more proactive in going after this? So I think among the Republican Party base, I think this is a way for them to have a counter- narrative. I do think, however, though that with this indictment coming down tomorrow and again, we don't know who it is.
BARTIROMO: We don't know who it is.
BURNS: And we don't know what the charges are. I think that that issue is going to take center stage at a time that Republicans really can't afford it, because they have this tax bill coming out this week, the President as you just mentioned was -- is going -- preparing to go abroad after really key important trip and this is hanging over. And it just points to the idea that who knows what's coming next and It's kind of this living in fear of things just dropping down.
ROLLINS: The one thing that needs to be made very clear, when Comey, when he was the FBI Director had his meeting with the President and basically presented this document and the17 memos they're all put together. Normally opposition research is press clippings, bank loans that kind of stuff. It's not salacious information. In this document, there was salacious information that was unfounded or unproven. For him to walk in and say, Mr. President, I think you should know this was pretty outrageous because I would assume if I was the President, I was sitting there as saying, is this your document or whose document is this in your first meeting. Equally as important, it turned out he had made that same presentation to President Obama. President Obama's team got very active in looking at everything after this and I think what you'll really find out that all of the stuff gets started by these documents that were not basically tested out and certainly the FBI basically is going to black eye if they didn't do that.
BARTIROMO: That's the question I asked before. Did any reasoning to actually wiretap Trump Tower come from what was in the dossier? Because if so, it's based on fabrication.
ROLLINS: We don't know -- we don't know what started all of this. We don't know what went to FISA, which is the court that basically gave them the authorization to move forward on this. We don't know what the catalyst for all this was. My assumption is this document had a big role in all that and if it did, then I think the FBI failed on its mission.
BARTIROMO: Big, big development if that's the case. Let's take a break, then we'd got to go back to the agenda. Will all of this impact the tax package that we're all waiting to see on Wednesday? More with the panel as we look ahead on "Sunday Morning Futures" right after this. Stay with us.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. We're back with our panel Caitlin Huey-Burns, National Political Reporter with Real Clear Politics and Ed Rollins former White House Advisor to President Ronald Reagan and a Fox News Contributor. Robert Mueller fights with Corker and McCain and Jeff Flake. Does this get in the way of the agenda in passing tax reform, Ed Rollins?
ROLLINS: No question it does. I think this is a week like we've not seen in a while. I think there's so many distractions and by the end of the week, you can't predict today what's going to happen at the end of the week.
BARTIROMO: It's true.
ROLLINS: It's just going to be a crazy week and I think to a certain extent, to try and put forth a tax plan that nobody knows the details of, it's going to be very distracted.
BARTIROMO: What do you think?
BURNS: Yes, I think that's a really important point that there's not a bill yet this week. We are supposed to get actual legislation. But as we saw, I think the budget vote was very revealing. 20 Republicans voted against it, which shows they have so little margin for error in the House, let alone the Senate and as we were talking about earlier, the Senate is really going to be the difficulty here. And you talk to Republicans and they're concerned a little bit about this relationship because they want to be able to present a united front because this tax bill is going to be a proxy for showing that they can govern by passing some legislation.
BARTIROMO: Yes -- I'm sorry. If these 20 or so Republicans get together and say we're not voting yes on this tax bill because of the elimination of the state and local deduction, they've got a problem
BURNS: Exactly and a couple of them are very top supporter of the President.
BARTIROMO: Yes, exactly right.
BURNS: Lee Zeldin -- Lee Zeldin for example from New York voted against this budget.
BARTIROMO: Lee Zeldin, Peter King --
BURNS: Exactly.
ROLLINS: This was also -- this was the easy vote. This was the budget resolution. 18 members had already voted against the own House resolution, 20 voted against this. This is not the tax bill. This is not the detail of the tax bill. This is not what -- no one knows what's in a budget resolution but they will know what's in a tax bill. And if all of a sudden you basically have voted for some eliminating state and local taxes and you live in New York or California, New Jersey or somewhere else, your constituents are going to remember and they're going to put it in your back --
BURNS: And the lobbying effort has not really begun in earnest, right? That's going (AUDIO GAP) too is you have all of the stakeholders involved, much more than health care I think.
BARTIROMO: So do you think they get it done?
ROLLINS: I don't think they get it done this year. I do think they can get it through the House. I think that -- I think they're foolish to try and make it a deadline by the end of the year at Christmas. I think you need to basically try build this. The President has to go sell this into the country and that's not been done yet.
BARTIROMO: What's next? Big week this week.
BURNS: Exactly. You'll have the legislation come out this week which will really be key because as we know the devil will be in the details and there will be a lot of different groups coming out and talking about these details.
BARTIROMO: That's when the lobbying begins.
BURNS: That's when it really begins. And it really depends on what the President is doing this week, right? That's why I say the Mueller investigation has the potential to overshadow any goodwill that they want to have in the House and Senate, also preparing for this overseas trip.
BARTIROMO: All right, we'll leave it there. Caitlin, good to see you, Ed always a pleasure.
ROLLINS: Thank you.
BARTIROMO: Thank you so much. That will do it for us. I'll see you tomorrow morning on the Fox Business Network. We'll have all of that and more on "Mornings with Maria" on Fox Business tomorrow 6:00-9:00 a.m. Eastern. Have a great Sunday. Here's "MediaBuzz," Howie Kurtz.
Content and Programming Copyright 2017 Fox News Network, LLC. ALL RIGHTS RESERVED. Copyright 2017 CQ-Roll Call, Inc. All materials herein are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of CQ-Roll Call. You may not alter or remove any trademark, copyright or other notice from copies of the content.
Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox