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This is a rush transcript from "Special Report with Bret Baier" September 15, 2021. This copy may not be in its final form and may be updated.

BAIER: Well, that's another day in Washington after a Bob Woodward book. This time Bob Woodward and Bob Costa with the book "Peril," reaction to charges, allegations in this book of what Chairman of the Joint Chiefs General Mark Milley did in the wake of the January 6th riots on Capitol Hill.

Here's a voice we hadn't heard from in a while, retired lieutenant colonel Alexander Vindman of impeachment fame tweeting out "If this is true General Milley must resign. He usurped civilian authority, broke chain of command, violated the sacrosanct principle of civilian control over the military. It's an extremely dangerous precedent. You can't simply walk away from that. Do the right thing in the right way."

Let's bring in our panel, Ben Domenech, publisher of "The Federalist," Harold Ford Jr., former Tennessee Congressman, CEO of Empowerment and Inclusion Capital, and Trey Gowdy, former Congressman from South Carolina. Trey, a lot of push back from the Pentagon today. We had our own reporting saying what General Milley did with two calls to the Chinese was to try to calm fears, and what he did, they say, with the nuclear process was to make sure the process was intact and everybody knew what was going on. The book alleges something different. Where are you on this and the significance of it?

TREY GOWDY, FORMER SOUTH CAROLINA REPRESENTATIVE: Bret, I have never liked anonymous source. We certainly didn't use them in the courtroom, and there is a reason for that. And I don't like starting things by saying "if it's true," but this is television and not court. I find the whole thing bizarre that you have a U.S. general who thinks an American president is more of a threat to the country than China. I think it's really bizarre that he didn't tell anyone who could have actually done something about it, if that's what he believed. And I think it's bizarre that we call people ahead of time and warn them, hey, we may attack you. My dominant thought, Bret, is I bet that Afghan driver who was bringing some water to folks would have appreciated an advance call before an attack.

BAIER: Harold, this comes, stems from in a book a transcript actually of a call between Speaker Pelosi and General Milley in the wake of the January 6th riot on Capitol Hill. I assume it's Pelosi's office who records that call and gives Woodward the transcript. But in it she says how do we prevent this president who losing it from using the nuclear football, from authorizing a nuclear strike, which, by the way, no one in the Trump administration or around them ever said that the president was even contemplating any action like that.

HAROLD FORD JR., FORMER TENNESSEE REPRESENTATIVE: Look, first, thanks for having me on. I think Trey, again, has the frame about right. We have to remember, though, the last two months of President Trump's presidency was pretty chaotic. In fact, the last two weeks were the most remarkable -- the most remarkable I have seen in politics since 9/11. It appears that according to the reporting in the book, and I have not read it, just what reports are about the reporting in the book, that Senators Graham and McConnell also wanted to try to erect some guardrails around the president, and including Attorney General Barr, according to the reporting.

General Milley will have to answer these questions before the Senate in a couple of weeks. And I don't know him, but what I do know of him from seeing him on television, reading his comments, he seems like a pretty straightforward guy who is not afraid to answer questions honestly. So we will see if the reporting is true.

BAIER: Yes, it's important to have that context in the wake of January 6th and leading up to January 20th, Ben. There were a lot of people inside the administration who was saying the former president, now former, was acting erratically. But the actions of the chairman of the Joint Chiefs if as reported is true, and again, there is a lot of pushback, would go outside his line of command.

BEN DOMENECH, PUBLISHER, "THE FEDERALIST": One think I can tell you, Bret, is that members of Congress, certainly the ones that I have spoken to, do not believe the pushback. They do not believe that this is an accurate reflection of what went on there. And they have raised significant questions, particularly those members of the Republican caucus who are themselves veterans. And I expect that we will see a continued focus on this in the days to come, particularly given that this is something that exists outside of the chain of command. This is not a situation where General Milley would ever be authorized to do something along these lines.

And there are questions that are raised by this that go beyond just the normal slate of things. This is the kind of thing that can be used in many ways to run down the expectations and the respect that military members have for not just the chain of command but for the highest officers, those who are met with the greatest challenges. It does no service to them in order to see this kind of thing happen. And I think you are going to see an investigation into this, perhaps a classified one from the Intel Committee or from the Armed Services Committee in the House that continues and that digs down and that tries to get to the accurate estimation of what really was said, because I think we all deserve to know it.

BAIER: Again, Milley is scheduled to testify September 28th. We have invited the chairman of the Joint Chiefs on the show if he wants to come talk about before that, and we will see how that testimony goes.

Meantime, up on Capitol Hill, dealing with what is in the bill, the massive bill.

(BEGIN VIDEO CLIP)

JEN PSAKI, WHITE HOUSE PRESS SECRETARY: The president encouraged members of Congress to put things forward, things they would like to see in the package.

REP. MIKE JOHNSON, (R-LA): This $3.5 trillion spending palooza includes amnesty for somewhere between 8 and 10 million illegal immigrants.

STEVEN HORSFORD, (D-NV) HOUSE WAYS AND MEANS COMMITTEE: It's about making the American worker competitive.

SEN. JOHN CORNYN, (R-TX): Permanent welfare with no work requirements, green new deal climate mandates.

JIMMY GOMEZ, (D-CA) HOUSE WAYS AND MEANS COMMITTEE: We invest the largest amount in the history of this country in the green economy.

SEN. ROB PORTMAN, (R-OH): It increases taxes on retirement accounts. It increases income taxes.

REP. RO KHANNA, (D-CA): The plan means that seniors are going to get dental. They are going to get vision.

REP. MIKE KELLY, (R-PA) HOUSE WAYS AND MEANS COMMITTEE: This ain't no open bar. Somebody's paying for it. Somebody is going to pay for it down the road.

(END VIDEO CLIP)

BAIER: So some different takes about what's in the bill. Trey, we have got moderate senators, Kyrsten Sinema and Joe Manchin up on the White House. I'm sure they are doing the hardcore press, full-court press on trying to get those moderates to come along.

GOWDY: I don't know Joe Manchin, but I can tell you it won't work with Kyrsten Sinema. She ain't afraid of anything. My two dominate thoughts are, number one, how embarrassed I am. I never thought to get the parliamentarian to tell me I could put whatever I wanted in a bill and just have one bill for the entire year. Never entered my mind. We used to call that a queen. Now it's called a parliamentarian.

The other thing I can't get my head around, Bret, is we are a 50-50 country. The House is close. The Senate is evenly divided. That is not the time to pursue transformational change on either side. It won't work.

BAIER: Massive immigration reform in a budgetary item is really pretty brazen. But we'll see where that goes.

Here's "The Wall Street Journal" on the tax plan. I just want to give a couple second to this. Expected to raise -- this is what passed out of panel today, expected to raise more than $2 trillion in new revenue over the next decade from high income households and U.S. companies, raise the corporate tax rate to 26.5 percent from 21 percent, basic top income tax rate would increase from 239.6 from 37 percent. The top bracket starting at $400,000 for individuals, $450,000 for married couples. A three percent surtax for household incomes above $5 million. It would increase long-term capital gains and dividends to 25 percent from 20 percent, prevents people from contributing to retirement plans that's Roth IRA if value exceeds $10 million, $78 billion in funding for IRS to ramp up tax enforcement. That's a lot more tax agents. Doubles the current tax rate on cigarettes, small cigars, and roll your own tobacco, just to name few. Harold, there is a lot in here.

FORD: There is. Look, I am for immigration reform. But this is not the way to do it in a reconciliation package. And I would hope the parliamentarian might feel the same way, but we shall see. I would agree with Trey. Senator Manchin and Senator Sinema are probably not going to agree to too much of this.

But I've got to tell you, a tax code and spending on the part of government ought to be organized around how we make America stronger and more competitive. And I think some of the ideas in this plan are not as objectionable I think to a majority of Americans as some may think, particularly when you consider that it's going to raise taxes on the highest of earners. I think the $400,000 limit the White House may have, they are going to have to shelve that. If what this plan says you are going to tax those earning over $5 million over a year a little bit more to pay for some things, I think a lot of Americans may come along with that.

BAIER: Yes. I think there may be a lot of horse trading here and Chuck Schumer may know that it's not going to be $3.5 trillion. It may be $2 trillion and a lot may go in the negotiation. But they might still get something through.

Ben, you will start on tomorrow's headlines when we come back after this.

(COMMERCIAL BREAK)

BAIER: Finally tonight, a look at tomorrow's headlines with the panel. As promised, Ben, first to you.

DOMENECH: Hilarious Canadian man fights cancer to a draw. RIP to the great Norm MacDonald, the best news anchor that I know not named Bret Baier for his fight and battle against cancer. He pointed out that you never actually lose to cancer. You take it with you. So he fought it to a draw. And congratulations to him and all the happiness he has given us over the many years of life he had on this earth.

BAIER: Rest in peace. Trey?

GOWDY: The FBI botches another major investigation, this one involving sexually abused young girls.

BAIER: Tough one. Harold?

FORD: I agree with Trey.

Woodward has done it again, this time with Bob Costa. He has gotten Washington's most powerful to talk about things that sell books.

BAIER: That is true. Thanks, panel.

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