>>gregg: in mamaroneck, new york, a man with a gun tried to get in a middle school but he did not succeed. all the scores are -- schools are if lockdown. we will continue to follow that story. that is it for "studio b" today.

>>neil: new congress. same old government. only bigger. getting bigger. we do not seem to even care. so you want more government? you will have to put up more money. welcome, everyone, i am neil cavuto, last night, out of the blue, it hit me like a ton budget bricks. we need more money. fast. we refuse to shrink government we have to find a way to pay for the government. the time of big government is not over by a long shot after the latest cliff deal which was supposeed to strip spending. but it increased spending. they did not cut a thing so i will cut to the chase. more that rich folks have to cut a check. lots of checks. lots of folks. taxing the rich will not cough

the bill. even with the $600 billion tax hike on wealthy payers the next ten years that works out to $60 billion a year. barely enough to keep the government running for a week. they are not cutting anything. anything. democrats do not want to town -- touch entitlements and the black caucus is not addressing medicare or long-term sustainable demands on social security that are not sustainable. we have to find a way to increase revenue. if you took all of their money, every last dime of every last rich person, ten years out, our debt will still be higher than it is now even if you got all their money. do the math with this deal: $60 billion in taxes and that is not hacking away at $1 trillion deficit. the deal ends up adding more than $300 million smackers to

the deficit. your deficit. it is a bigger deficit. you have to move down the food chain. to you. to the under $400,000 and $450,000 crowd. i am thinking $50,000 and over. hike all their taxes, say, conservatively, 5 percent, all of them, all of them, and it still would not keep up, still would not keep up with the spiraling growth out-of-control programs like medicare, medicaid, and social security. i have not touched defense. do not get me going on defense, just to sustain what we do not want to cut, we would have to raise everyone's taxes a hell of a lot more than anyone can fathom. along the way you could hope, pray, for business boom. like the bill clinton boom with the internet but if this high tax environment i suspect you would be waiting a long-term.

that is my opinion. and there is the issue of how much money you would really get from their higher taxes anyway. usually not as much use thing. the higher taxes restrict growth which restrict revenue. ask states like maryland or cups like the majesty of england which pushed higher taxes on the wealthy only to end up getting less tax revenue, not more. money tends to find cheaper homes. maybe you can force it not to chain anyone of means to their desk toiling for the government in this country but i suspect that will not help washington or this country. we can try. we have given up on spending. the only other option is taxing. we cannot cut spending even a small bit we have no other choice now but to tell every american, you are going to have to cough up a lot. washington, dc, they are not telling you that. but i did.

because i know the numbers. trust me, they know the numbers, too. you like this government? he is hungry and get are -- getting more hungry. and now, my guest says it is time to starve. if we do not want to curtail spending, there is no appetite the only other open is to hike taxes. >>guest: that was so depress ing. it is already happening. i call it tax creep. that is the only way to generate enough revenue to keep feeding the beast we saw with the snout in the trough. it happened overnight. if you do not watch fox you do not realize that 77 percent of the population saw their taxes go up with the deal, the payroll

tax holiday that went away, a 2 percent hike, so you are talking folks that made $50,000 and they lost $1,000 on january 1. >>neil: it is not enough. if you are not going to cut and you want to stay -- sustain the government we have now unless the government hits the lottery you have to hike taxes on everyone. >>guest: you do but that will not do it. you did the math, if you confiscate the wealthiest people's wealth, that does not do it. if you tax everyone else that will not do it. there is not a solution other than cutting spending. >>neil: what do you make of the fact there was not an absolute to cutting spending and what is different they did not promise it. they made no commitment to say we promise next year, but they never d >>guest: no, no new year's resolution to cut back. it is appalling. you would think americans would be appalled because --. >>neil: are they?

people say if they could, tax the rich, or take programs away, or curtail them, they do say, tax the rich but now even if they know that the rich, going after all their money will not cut it, then what? >>guest: people other than our faithful viewers do not do math. that is the problem. they believe the promises that we will ask -- how many times did you ask we will ask wealthy to pay a little bit more, their fair share and that will help us solve the problem. anyone who can do math does not believe that. >>neil: people are sold on the motion and that is why i covered the convention and bill clinton said we knew something about arithemetic, actually, you didn't. the fact of the matter is, if they are not going to start whacking the government they will be whacking us. >>guest: they are but that will not solve the problem.

there is not enough tax revenue out there. i have to sell some more books, diary of a stage mother's daughter. >>neil: that was pathetic. but effective. >>guest: i didn't bring one down. >>neil: her book to keep a lot of entitlements going. do thought forget her show. could a toss of a coin solve the debt mess? a lawmaker thinks so. new york democratic congress says the federal reserve should mint $1 trillion platinum coin. deposit it in the treasury. use it to pay the nation's bills. charles payne, why didn't we thing of that? are you kidding me? >>guest: this is funny, because he is not too far off the farce that we live under already. the only difference is if his situation, the platinum coin is

given to the treasury, but right now it is given as a treasury bond and he is saying forget the bond part turn up the coin, give it to the treasury, and the treasury has $1 trillion but spend to your heart's content. >>neil: if i saw them, and that is collectively, the congress take as much time, pain and effort to solve the debt crisis i would be okay but i'm not. >>guest: well, this is a shortcut. this is the easy solution. this could be the grand bargain. when i heard the story i thought of an island where they have big coins made of stone. >>neil: that is a 20-year paycheck. what is so yield, i thought it

was a joke. the idea being we are never going to be up against the brink if we have a magic coin that the fed has ready. this is almost like lucky charm, the magical leprachan creating stuff from thin air. >>guest: but we are not too far from that. that is why i love the story, we are close to this as a reality. the fed prints money. they give it to treasury. treasury pays interest. the fed takes a profit from the interest and gives it back to the treasury and this keeps going on and on and on and it is bigger and bigger and maybe it will be one giant coin that collapses on all of us. >>neil: thank you, charles. folks, we are going to get downgraded. this is the kind of stuff that happens right best downgrade.

the last days of rome this happened they come up with $3 trillion coins and that was i. say one thing but sign another? the height of hypocrisy from steve. how is it so company senators voted for the cliff bill three minutes after getting it? they could not have read it. it is 154 pages. unless, of course, they were the world's fastest reader. he's back. he has 154--page bill and he knows what to do with it. stick around. humans. evenhen we cross our t's and dot our i's, we still run into problems. namely, other humans. at liberty mutual insurance, we understand. that's why our auto policies come with accident forgiveness

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>>neil: when the word's fastest reader goes through this better than 1,500 baucus health care bill he ripped through it and flings it on the car. we are in the 15th round and, howard, it is fought looking good. can you take a break. howard? howard? howard? can you hear me?

what is going on? what happened? >> i am on an uncomfortable chair. >>neil: too bad. uncomfortable chair! wait, wait, wait, he is done. done. howard, congratulations. thank you very much for the better part of this hour, i know, charge, you want to take a bother. maybe vodka would be in order at this point rather than water. we hope that was water. remember that? it took the fastest speed reader under one hour to read original 1,500 page baucus health care bill. how long could it possibly take him to read 154 pages? that is how long this fiscal cliff bill is, the same bill no one in the senate bothered to rode before they hurried it vote on it. after the senate got it, three minutes later, it passed the bill.

unless you are howard, you are not reading it to three minutes. can he even do it? howard is back. howard, are you ready? >> ready. >> begin the clock. >> clock has begun. >>neil: three minutes. you are watching the world's fastest reading going through the 154-page bill if you include the title page which i always included. this is the measure that got us off the fiscal cliff. this is the measure that called for 41 times more tax hikes than spending cuts. i don't want to give it appear because that is cheating and howard may be relying on my cliff note version but there are real doozies in there that only a speed reader could cap. three minutes to vote -- read this. senators who voted on this vote

offed on it after having it for only three minutes. >> back in a minute. did the president read it? something he said after passage makes steve wonder. >> we cannot simply cut our way to prosperity. cutting spending has to go hand in hand with further reforms to our tax code so the wealthiest corporations and individuals cannot take advantage of loopholes and deductions that are not available to most americans. >>neil: really, more "i read the whole bill trust me." steve says manage is funny because that is exactly what this fiscal cliff law allows companies to do. steve? >>reporter: well, i do remember when our speed reader tried to read the obamacare bill. >>neil: we will go like to howard right now he is whipping through the pages. he is not slinging them on the

near because he got our cleaning staff very annoyed. back to you, steve. >>guest: look, i have read the bill. it took me an hour and a half and i may have missed some stuff but this is a monument to tax reform. this is an orgy of special interest provisions. everyone got something. >>neil: it does now say in the bill "orgy." >>guest: i don't think that is in there but if you are a company and you have a lobbyist in washington, dc and they didn't get you something if this bill county you should fire the lobbyist because there is so much junk in this bill, there is stuff forness car, for the wind energy. >>neil: a lot of stuff for green energy. >>guest: and all the stuff for appliance producers, people would make washers and dryers. do you have an electric motorcycle? if you do you get a tax credit. the point is, a favorite if

here, the aggrieved near bankrupt hollywood movie industry gottens of millions of tax credit. not the steel industry, but hollywood. hollywood. one of the richest industries. >>neil: we are down now to the end. howard, howard, howard, hour, stop. you are out of town. he is not done with it. and you are a speed reader. how far did you get? what page are you on? >> i am on page 103. >>neil: you are slipping or . >>guest: this is a lot of detail. >>neil: did you comprehend what you saw? >>guest: i could do a pretty good analysis. >>neil: based on going through a little bit more than two-thirds, you think you have enough information to have voted yes-or-no if you went to the senate chamber. >>guest: the very beginning of the bill is like a cable of

contents and it is the bullets of what is going to be, the big picture, the 50,000' view and the details how that is implemented and the numbers are specified as you go through the bill. >>neil: howard, i will give you a chance, you have already not made it in three minutes, obviously you have slipped. you are not the old howard, but you still a legend. you did not fix the clock, did you? you didn't like --. >>guest: well i personally read the whole thing. >>neil: too many years of fighting. howard we will go back to steve moore, there was a lot of stuff he was citing and you were citing and i looked this over. it does not address the big cliff issues. there are a lot of goodies.

>>guest: there are. what is infuriating as a taxpayer we are supposes to clean this out. you played the clip of president saying we are getting rid of the special loophole but mr. president you signed into law a bill that adds literally tens of billions of special provisions that most people do not have, small businesses do not have unless they have a lawyer, an accountant and lobbyists in washington. let me say this: the bill is so bad, so bad, it almost makes the case if tax reform. we have to blow up this tax code and start over. if you want exhibit a, read this document. >>neil: they could have widened the margins and cut the puppy down to ten pages but i digress. back to howard berg who is made famous by reading the entire health care bill and telling us what a disaster it would be.

what he has discovered is next.

>>neil: you are look like at howard berg who stopped reading the 154 fiscal cliff bill. he got through it, not finishing knit three minutes. but that is okay. why are we doing this experiment? i want to put this in context, folks on the same day we got word that a u.s. congressman has seriously offered a way around the debt mess by suggesting the fed hold in reserve $1 trillion coin in case something happens. i am telling you, this is how rome looked in the final days if they had trillion dollar coins, if they were having speed readers go through with tablets,

this is what you do when you have no idea what you are doing. howard, you had a chance to look at this and we mentioned the three minute thing because that is all the time the senators had to read this so they arer very fast like you or they voted on something this they did not know what they were voting for, the old nancy pelosi, you have to vote for it before you know what is in it. what did you discover? >>guest: it was an unemployment tax extension, training bill, there was an extension of 2011 and 2009 tax allotment, some was made permanent for individuals for elementary and secondary schoolteachers there was a special provision, there was tuition for people who have kids , your state and sales tacks

and local taxes would still be deductible, for businesses there are a number of things there. the gentleman was right there was something for entertainment complexes to offset the seven years, there was 100 percent not having to pay on stock on small businesses on the capital gape. >>neil: howard, just the major points but you are killing me. i am kidding. you are a genius. did you get a sense that there was a lot of add-ons in here? i read this, as well, not as quickly as you, my friend, but i saw a lot of things what had nothing to do with the headlines and the deal they were crafting, they shoved the extra items in it in the middle of the night kind of deal. >>guest: there was a lost stuff in the medical, medicare section, probably one of the

largest sections dealing with health care payments and also there was very large section on green energy, the gentleman said the vehicles of two and three plugs and things on biofuels and something for ranchers and farmers, an agricultural section which no one mentioned which was to help them be able to offset their costs and they were rewarded if they used algae for feed, a certain type of algae you would get a deduction. >>neil: there was an algae credit. algae credit. you obviously glossed over that. i will let that go. your take verify discussion legislation you read like the health care bill, is this like a mini version of that? a lot of stuff in it but not so many pages? >>guest: i read the simpson-bowles report, the actual report which was 1,200 pages and they said the only way out was drastic deduction in

spending and dramatic increase in taxes. they said the republicans would oppose the tax increase and the democrats would oppose --. >>neil: none of this was in here? >>guest: no, no, but it is a first step. they had a lot of things they had to do at the last minute much the unemployment benefit would have run out. you would have diabetics who could not get their medication or people who could not feed their kids. when you bundle that together and say what do you want did do, starve the people? >>neil: that is what happened, they said if i am voting for this i will vote for it. howard, thank you very much. dion, you clocked it, right? dion, he got most of it done? >> the first 300 -- the first 100 pages. >>neil: this congressman, by

the way, did read it, did not like it, he did not vote for it, a texas congressman, one of the few republicans who did not vote for speaker boehner, either. the man who now has been relegated to house janitor joins us right now. was there any fallout on nixing speaker boehner that you did not vote for him? some worries there would be retribution. any hint? >>guest: well, we have seen people be purged for not voting as they were expected. speaker boehner is one of the nice of the guys around and most fun guys to be around but the congress is so full of brilliant and talented people --. >>neil: he orchestrated the package and --. >>guest: two years ago we took a pledge that speaker boehner said we should take and one

thing we were going to do is what we -- we were not going to do what we did with the bill and it is fought like we didn't know it was coming, it has been coming for over a year. when you have brilliant and talented people in congress it does not say anything about someone not being a nice guy. >>neil: i am not interested if he is a nice guy. he wasn't for this package but he was going do leave it to the members to vote and a majority in the house of representatives, democrats and republicans, did vote if it, but you did not. will there be hell to pay? >>guest: already, from two years ago, any chairmanship that i might get i didn't get. the only one the speaker doesn't have a say in nixing i am co-chair of the thursday morning prayer breakfast bible study but other than that, this is a

matter of we cannot be about business as usual. that is what my vote was. a statement that we cannot be about business as urge. >>neil: that means rushing stuff and cramming it into a bill that very few colleagues have a chance to read and then they are surprised. the president was not aware of a couple of provisions in the bill. >>guest: the asparagus farmers did need the help we are told. so did the race car motor cross, whatever, that was included, as well. it is time for a different change, a change of pace, and i could not vote for business as usual. >>neil: you are a man of principle. i wish we had more time. thank you very much, congressman two words: al gore. two more: filthy rich.

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>>neil: back to howard berg, the speed reader. did he really read that? our crew is finding that is the actual bill a copy was provided by howard and he did read it. we are on the up and up. the only reason we did this exercise when you vote on big pieces of less, you might vote thinking you know the big score, big headline numbers, to keep the tax rates the same for

everyone but the wealthy or make sure we raise capital gains taxes, what have you, protect unemployment benefits, et cetera. but there is a lot of other stuff, that is why there are 154 pages with add-ons they could not possibly have been aware of in just the few minutes they had going from conference to the voting chairmanner to vote yes or no on this and that is the point, howard, there is no way in heck you would be familiar with the add ons because they were dropped so quickly into the bill. >>guest: i thought it was about unemployment extension and tax decreases. i didn't know it was medicare or there was a forming sucks difficult, or a lot of little things there, the green energy part, all these things probably did have to come to a vote but why see why they had to package it in with this one bill. >>neil: just to remind you,

all to became necessary because this was pushed to the brink. when you are in a rushes like in high school or college and the night before you are churning the paper out and trying to get it out, you are reckless and not looking at details. that is what happens when you are in a rush and you knew this deadline was coming, you knew if you did not act sooner you would be in an all night rush and you knew unless you were howard you would be fried. you knew you were going to end up voting for something your constituents thought was crazy because you clearly did not read the bill and know all the crazy components. you knew you got the headline numbers but you had no idea what were the other numbers. republicans and democrats did this. again. their own deadline was abused. they took it to the brink. they wonder why they always do such a crappy job? it always happies when you are in a rush especially when there

is no need to have been in a rush. >> al-jazeera scooping up al gore's current tv for half a billion bucks. insiders say that o.j. tried -- that al gore tried to close the deal before new years because if he missed the deadline he would be paying higher taxes, he will. but he will make a lot money. and now, spell it out for us. >>guest: well, al gore, the inconvenient truth, he was running against george bush he was against the bush tax cuts he tried to take advantage of in 2012 before the obama tax hikes kicked in just a couple of days ago. the second thing, al gore is now an oil profiteer because al-jazeera is owned by the government that makes all the money by selling oil around the world, qatar. so he now has what you would call dirty oil money in the bank account.

>>neil: i don't know what is odder in this whole al gore situation because it is a capitalist society and you take advantage of tax rates when you can find them or not, but if this were romney trying to get a quick deal based on lower tax rates everyone would be all over him. >>guest: a complete pass. i have not seen al gore say he has plans to donate, say, do 30 million to charity. maybe he will. >>neil: that is unfair. i will say this: you are right, he bemoaned the public tax rates at the time. what i noticed, especially those who say rich pay more taxes they always have the option to pay more or voluntarily adding to give an extra $1 million to the i.r.s., and very few do that. so, very good at preaching and not good at practice. >>guest: i would like to see

all of the subsidies taken out of the fiscal cliff bill for green energy and maybe al gore can subsidize those now with the oil money he has received through the al-jazeera deal. we will see if he invests that in his own green energy projects or he takes it to run while he tells the rest of the world to be clean while he takes the money. >>neil: thank you very much. now, the fiscal cliff deal could be done but it is a fiscal disaster for young americans. our guest is with american majority action. explain. >>guest: the thing is, we had such an opportunity, the house republicans say conservatives in the house of representatives say shut down plan "b" and we had an opportunity to have a more conservative plan but we see we capitulated. the senate offered a plan that has a 1-41 ratio of spending cuts to tax hikes. what is this paying down?

we are not paying down our deficit or debt. this only cuts 4 percent our deficit over the next 10 years. this plan is expected to add $4 trillion to the national debt. my generation will be on the hook if this paying for this in the future. >> i don't think many in your generation are aware or comprehend how bad this could be, i could slide into this social security and medicare thing and make it under the deadline, but not so for you young lady and i think for many of your young counterparts and my kids i don't think it looks good. but the numbers seem staggering. do many in your generation share the view that they will never see medicare or social security or do they say we will find a way to get it. >>guest: my generation has in idea what is going on because conservatives are ignoring college campuses. during the campaign, romney had

historic opportunity to articulate the conservative principles on college cam because but we keep writing college campuses off. as long as we do that, our generation is thought going to understand it and they will keep voting for this stuff. >>neil: i will demand they watch this shore but thank you very much. they should listen to you more. knowledge is power, guys, built is power. >> the skinny on a government ban all in the name of "body image." that is ahead. [ male announcer ] wouldn't it be cool if we took the already great sentra apart and completely reimagined it? ...with best-in-class combined mpg... and more interior room than corolla and civic?

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>>neil: we hear the israeli government is telling model would look like this...to take a hike. models in israel new need to look more like this.

i am kind of thinking which i prefer. should women be a fan of this ban? a therapist says absolutely. what do you think of this? >>guest: i think this is an exlength -- excellent law. young girls have body image issues and eating disorders. we do have to regulate the industry, the advertising industry. >>neil: in israel, they are taking it a step further saying you cannot show it or be in the industry with that kind of look because it is unnaturally and unhealthy. but where is the line teen not

allowing it on the left and allow it on the right. five pounds? what? >>guest: what i love about this law it is only the super skinny models that are banned from advertisement with body mass index of 18.5 or lower are not allowed so if you are 5' 8" that is 120 pounds. the other thing i love, a law says they, if they photo shop, or higher a bigger model, and make her smaller they have to print that in the ad. >>neil: a lot of model i-have interviewed for research purposes, and i am surprised when i seem them they are nothing like they look like on tv, they are very thin, and i am wondering, the camera must add, as i know, at least 50 pounds,

according to my 19 fans. maybe there is a reason why the modeling industry focuses on these low weights either in clothes or in television. you will look bigger than you are. it does not take away from the makeup, but what do you think going on here? >>guest: well, it is two-fold. i was a fashion model 30 years ago and lived in paris and lived life on the runway. i know the pressure to be thin. the camera does a two dimensional aspect of a flat photograph adds 10 pounds to you. second --. >>neil: just ten? could you see it add 40 or 50 pound? >>guest: maybe for you, you are a special camera shot. you are a lot slimmer in person. they are looking for on runways kind of clothing racks, the bone racks that are meant for the

fabric to drape properly. when you looked at pictures of the slightly more buxom models, men do not prefer the skinny ones, they like the curves. but they are not selling clothes to men they sell to women. >>neil: the final point, you think the pressure will be on male models who are very thin and gaunt, almost, i guess it and what it is, but there seems to be you have to promote super lean. what is the difference between super lean? >>guest: well, who knows on each individual person because there is weight of bone and genes but there is more anorexia in guys because they want the six-pack or eight-pack. you know how you get that? the kind they sport on the runway? you have to get so lean, you have to have 3 percent or 4

percent body fat. that is crazy. >>neil: idiots. idiots. doctor, thank you very were. john boehner, clint eastwood, richard simmons, what do they have in common? that is next.

>>neil: speaker boehner lives for another day, the battled speaker boehner, still the speak we of the house because there were no good alternates in the house. why didn't they look outside the house? they could have. there is no law that says the speaker of the house has to come from the house of representatives or even be a congressman. house members can choose anyone they want. it is true. but they have always wanted one of their own. are we ever surprised whether it is speaker boehner office before him speaker pelosi that we get more of the same? same arguing?

it would not be the same old going with speaker weaver. >> just call it even, okay. >> i would say we take off and nuke the entire site. >>neil: you cannot leave out clint. >> want to make my day. okay. >>neil: he would be different. if he gets off a chair and get as laugh, speaker, feeling lucky, he can talk to a president and get a deal. more apollo 13 commander, who better to fix washington problems than a guy who tackled the ultimate problem. >> houston, we have a problem. >> he gets my vote. >> or maybe rather than the speaker sweating the same old budget deals, speaker richard simmons sweating with the

oldies. >> hi. hi. hi everybody. hi! come dance with me. dance with me. come on. you, come dance to. >> if you are looking for someone slightly more thoughtful, someone with whom you can make a deal and bear your spending soul who better than e-harmony guy who helps thousands find their ultimate soul might. >> fine the person who will accept you and love you for who you are. >> he looks like a speaker. no, no e-harmony guy, no astronaut guy, that looks short, short guy, or actor talking to a chair, or ms. weaver, back to this go. nice guy. safe guy. a gay who is not afraid to guy or afraid to curse, there could come a time when washington

tires of business as usual but today is not the same. sorry, richard, you will have to sweat this out a little longer. ♪ baby, i don't know what you got ♪ ♪ better take it easy ♪ so glad we made it ♪ so glad we made it ♪ give me some lovin' ♪ give me, give me some lovin',

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