>> bret: mike emanuel live on the hill. thank you. new york democratic senator chuck schumer joins us now from poughkeepsie, new york. easy for he to say, senator. good evening. thank you for your time. >> good evening. >> bret: what where is this going? is there any possibility that the senate democrats will agree to come back and appoint this and move it from house perspective to something that is one year for payroll tax cut extension? >> no. i think where it is going is within a little while, the house will do just what leader reid asked them to do, the president asked them to do. which is pass the bipartisan reid-mcmcconnell bill and negotiate for the rest of the year. the republicans are fighting with one another. my guess is lots of people and senator speaker boehner's own caucus are saying enough of this. you have can't just listen to the hard right people. we have done our job. we passed a strong bipartisan bill. the house is playing games, send it to a committee. we know what that mean means in washington. it means we want t

chief congressional correspondent mike emanuel is live on capitol hill with the latest. mike? >> good evening. they are expected to have three votes. the first is expected to kill the package that passed on saturday. house spea speaker john boehnery they need to sit down and work it out. >> there is a disagreement between the two chambers. and we sit down and rethe differences. that is what i believe the house will do. >> message from harry reid that thought vote in the senate including the 39 republicans meant the issue would be finished until february responded, senator mcconnell and "i" negotiated compromise in speaker boehner's request. i will not reopen negotiations until the house follows through and passes an agreement negotiated by the republican leaders and supported by 90% of the senate. vast majority of the house republicans thought it was a lousy deal. told the speaker on a conference call saturday, and expressed their concerns today. >> you have to be kidding me. there is no certainty in two-month policy from washington, d.c. >> here we are again, punting issues t

>> mike emanuel live for us tonight. mike emanuel on capitol hill. thank you, sir. china's first aircraft carrier is reportedly on the move. and there is apparently a new picture to prove it tonight, what the experts are saying about the military threat from beijing. plus, time magazine revealing person of the year. you have met this person? it's actually thousands of persons. there is that and how the volume on your commercials may go down. it's a big night around the big cube. from the journalists of fox news, this is the fox report. [ male announcer ] what if that hemorrhoid pain is non-stop to seattle? just carry preparation h totables. discreet, little tubes packed with big relief. from the brand doctors recommend most by name. preparation h totables. the anywhere preparation h. so i used my citi thank you card to pick up some accessories. a new belt. some nylons. and what girl wouldn't need new shoes? we talked about getting a diamond. but with all the thank you points i've been earning... ♪ ...i flew us to the rock i really had in mind. ♪ [ male announcer

>> bret: mike emanuel live on the hill tonight. thank you. >>> despite black friday and cyber monday deals, consumer spending rose just a tenth of a percentage point in november. that was below the expectations. and matched an equally modest increase in income. stocks ended the week positively. the dow gained 124. the s&p 500 added 11. the nasdaq closed 19 ahead. california high speed rail project may be going off the rails. that is later in the program. first, new ads and a war of words in the fight for iowa. >> bret: the final sprint to iowa, number of candidates are campaigning elsewhere, a front-runner downplayed expectations and another fired back at the vice president. chief political correspondent carl cameron has the naughty and the nice from the campaign trail. >> tu candidates know -- the candidates know most voters will be distracted in the upcoming three-day christmas and new year weekend. >> thank you for coming out two days before christmas. >> the holidays will slash productive campaign time in half in the last 11 da

>> bret: mike emanuel live on the hill. thank you. the house is waiting for a final vote on the defense authorization bill. president obama threatened to veto that bill if it were a requirement that terror suspects be turned over to military custody. f.b.i. director robert mueller told senate judiciary committee today he cannot fully support the handling of terrorism suspects. and laid out in that bill. muller said the lines of authority are not clear enough. ranking republican jeff sessions says theer thor suspects should not be treated like common criminals. dissension among members of the nuclear regulatory commission spilled over to capitol hill today. chief washington correspondent jim angle is there to show us what happened. interesting, jim. >> i'll say, bret. in an extraordinary hearing, all four of the commissioners two democrats and two republicans publicly accused chairman of running roughshod over his colleagues. wreaking havoc with the staff and impeding the agency's work to ensure safety in the nation nuclear plan. >> th

mike emanuel is on capitol hill. the white house made a veto threat and seems serious about it. >> that's right. i don't think republicans on the hill are surprised after the president said last week he would reject such a package but there's frustration. here senator alexander. >> just as we should, republicans are ready to extend unemployment compensation, ready to do it now. so the problem seems to be at the other end of pennsylvania avenue. the president seems to be holding it up. and nerves are getting short, fuses are getting short as we get closer and closer to christmas. you've got important matters like this payroll tax holiday, also government spending package to be worked out before we run into it ending. >> shepard: and it will. first they have to vote on the g.o.p. plan. what are democrats saying about that? >> sounds like the timing is slipping. we do expect it will be this evening, perhaps during the "fox report," 7:00 eastern. bottom line, democrats don't like some of the other aspects grouped in with

mike emanuel is live on capitol hill. and, mike, last night they voted and as things seem to go they couldn't come up with anything. they voted down two bills. what's to say they are going to get this done? >> well, shep, the next step is going to be delicate negotiations, leaders here on capitol hill want to get this done. concerned about the political impact of taxes going up on 160 million americans heading into election year. here is the house democratic leader on the need to get this done. take a listen. >> christmas is coming. families are concerned. the deadline is december 31st is fast upon us. again, last month we sent a letter. last night the republics in the senate rejected their own plan. there has to be a better way to get the job done. christmas is coming, the goose is getting fat. >> now pelosi suggests paying for it by taking money from reduced spending on the wars. in other words, spending money that we no longer need to spend, which is a budgetary gimmick used only here in washington by both parties, she

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mike emanuel on top of the late breaking action on capitol hill. >> good evening. this hour we expect the house to pass the g.o.p. plan for the payroll extension. a high stakes standoff is building as the democrats push back and the speaker holds firm. >> we have a reasonable, responsible bill to help the american people. it will help create jobs. i am glad we are where we are. >> the white house has issued a formal veto threat, adding to the political drama. that drew angry response from the senate republicans. >> the president needs to quit campaigning and needs to get back and start governing and stop blocking the keystone pipeline. >> the house and senate appropriators have been hammering out a deal to fund the government from friday night through september. the must pass legislation. the leading republicans are blaming the white house and democrats holding it up. >> we can't move until they sign the contract report. it's a shame they toy around with the shutdown. >> administration officials do not want congress to pass spending bill first. out of concern that

mike emanuel shows there are signs of movement but only signs. >> the threatened government shutdown seem to change everything. they worked on the final unresolved sticking point as they seem anxious to get something done. >> i think everyone needs to step back and take a deep breath. >> after a week of heated rhetoric, change in tone as lawmakers realize no deal would mean government shutdown tomorrow night. speaker boehner says it's not in anybody's interest. >> we believe it's important to keep the government open and it's important to finish work on payroll tax cut. unemployment insurance. >> president obama agrees. >> there is no reason the government should shut down over this. i expect to us do what is necessary to do the people's business. make sure it's done before the end of the year. >> the house is expected to vote on language of the $1 trillion government funding package tomorrow. it would keep the government running through next september. key democrats pressed the leadership to pass it. many are now calling for an end to the hyper partisanship. >> we are better than al

mike emanuel is live on capitol hill. and, mike, what were they thinking? >> trace, either they thought they would not get caught or the people they are working with are clueless. let's take a look at some of these tweets. quote. my coworker just took a shot of jack crouching behind my desk. we have unabashedly given up on just about all things work-related. hash tag d 2 r december to remember. essentially saying they were planning to have a month long party. the next tweet, quote: i really like d.c. but i could have used another day away. the silver lining is that i don't have to see my idiot boss, hash tag small victory. it appears that victory has turned into a loss and it will be pretty tough to get a ference, trace. >> trace: what about congressman larson's office, mike? what are they saying about all of this? >> they are saying that the congressman and other staffers in the office did not know what was going on. and, as you mentioned, they say that the congressman fired these three staffers an hour after finding out about it. in a statement, they told

on capital hill, mike emanuel, foo news. a baltimmre mmn is facing extradition after he was tracked down in north carolina. carolina. baltimore police charged kendalll ynn last mooth with first degree rape. he was arrestte in charlotte, north carolinn. ppllce say he raped a woman in baltimore in 2006. anne arundel county police are searching for a sexual assault ssspect. the crime happened in glen burnie. the victim says she mee the suspect at a bar and he attacked her round 2 this morning on hospital drive. if yyu'veeseen him, please call police. can.../ the... state.../ use.../ taxpayer money.../// p tt... sue people.../ state? today...// to... dismiss.../ a.../ by the state.../ ffledd.& ááagainntáá... plaintiffs.../ challenging...// a.../ $1.5--billion ollar...// state project...///. owners .../ filee... suut...// ááquestioningáá... tte..... projjet .../ awarded...// tt... developers...// wiih.... to... goverror... áátodayáá.../ lawyers... for the sttte.../ thrratened.../ to... ágo-aheadá.../ with... their c

on capitol hill, mike emanuel fox news. >> a school principal takes heat for turning it off against his students. that's later in the grapevine. up next, home grown terrorists >> shannon: in world headlines the senior u.s. official tells fox news the administration considered plans to retreat or destroy the remains of an unmanned drone that went down in iran last week. the officials said discussions centered on using either a special operations team or an airstrike. afghanistan's president is vowing to confront pakistan's government over a suicide bombing against shiite muslims tuesday in kabul. 56 people were killed including one american. funeral started today. also today a mini bus struck a roadside bomb in southern afghanistan. 19 civilians were killed. back in this country, the problem of homegrown terrorists targeting military installation was the subject of an unprecedented meeting on capitol hill. catherine herridge has the story. >> since 9/11 there have been targets on the u.s. military. >> american service members and their families are increasingly in the terrorist scope. >>

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>> bret: mike emanuel live on the hill tonight. thank you. >>> despite black friday and cyber monday deals, consumer spending rose just a tenth of a percentage point in november. that was below the expectations. and matched an equally modest increase in income. stocks ended the week positively. the dow gained 124. the s&p 500 added 11. the nasdaq closed 19 ahead. california high speed rail project may be going off the rails. that is later in the program. first, new ads and a war of words in the fight for iowa. [ male announcer ] what can you do with plain white rice? when you pour chunky beef with country vegetables soup over it... you can do dinner. four minutes, around four bucks. campbels chunky. it's amazing what soup can do. helps defends against occasional constipation, diarrhea, gas and bloating. with the strains of good bacteria to help balance your colon. you had me at "probiotic." [ female announcer ] phillips' colon health. >> bret: the final sprint to iowa, number of candidates are campaigning elsewhere, a front-runner

but, first to mike emanuel tracking developments on capitol hill. mike, so what happens now? >> well, lawmakers, jon are expected to try to pass this, what is known as unanimous consent. speaker jon boehner also talked about a broader effort to strike a full one-year deal. >> the senate will join the house in immediately appointing conferees with instructions to reach an agreement in the weeks ahead on a full one-year payroll tax deduction along with unemployment reforms and extension of unemployment and the so-called doc fix for two years. >> jon: if there is a snag tomorrow. if a member comes and objects. mr. boehner says he will not hesitate to bring the entire house back next week, jon? >> jon: what sort of political fallout can we expect? >> well, the speaker revealed this deal to members about two hours ago on a conference call. he did not ask for feedback. he did not take questions. and that really seemed to anger some of the republic members. a lot of grumbling about that the speaker a short time ago acknowledged the difficulty of this fight. >> jon: it's not always e

and mike emanuel to join us live on capitol hill. what a morning, mike. >> exactly. pretty revved up for a rare saturday session here on capitol hill. the other big piece of legislation that was passed by congress is a two month extension of the payroll tax holiday for the average american, over the course of the year, about an extra thousand dollars in your wallet. over the course of two months, it will be a fraction of that, but president obama was very cheer a few minutes ago that he wants congress to pass this when they come back from christmas, over the course of the full year, here are a couple of key senators on what is involved with the temporary tax extension. >> it's certainly a good one for people who want to get, make sure the taxpayers keep money in their pockets and that taxes aren't raised on anyone, and to me, it's the big issues it's the pipeline. it's 20,000, construction jobs and 100,000 indirect jobs. >> best thing, keep it going for two months and i'd he love to see us come together and do long-term policy for economic growth. >> now, the bill pa

mike emanuel keeping watch. thanks very much. the president will be facing an up hill battle in the key swing states that helped him win the election in 2008. a "u.s.a. today" poll. it finds president obama trailing both of the republic frontrunners. the former massachusetts governor mitt romney up five points on the president on a head-to-head matchup. former house of representatives newt gingrich with a slight edge. the election is nearly a year away so those mean nothing. obama campaign is predicting a long and tough primary that will weaken whichever candidate ends up winning the g.o.p. nomination. some republicans would agree with that ed henry is live on the north lawn this evening. what's the white house strategy as far as we know? >> well, shep, we sat down today with obama strategist david axelrod. he laid out some game plans if you will will how they want to get to that magic number of 270 electoral votes. they start with a base of 276 electoral votes that are pretty safe democratic states. so the president has got to w

mike emanuel is all over it on capitol hill tonight. a flurry of activity there, mike. fill us in. >> in the last few minutes, senate republic leadership on the republic side met with their members in one side. senate democratic leadership met with the leadership in another room. two plans unveiled. one 11 month extension of the payroll tax holiday extending unemployment benefits. also doing the medicare doc fix that they have to do every year. including the keystone xl pipeline fully paid for, no new taxes. also a two month extension. earlier today we could tell they were getting close. here is senate majority leader harry reid. >> senator mcconnell and i have just finished a meeting. we are making really good progress on being able to handle handle the issues that everyone knows are outstanding. we are not there but we are very, very close. >> and we just heard from senator john mccain off camera a few minutes ago he said any time they get close to a holiday they get close to a deal. what we are hearing is they do believe they are going to hammer out a deal to make su

>> mike emanuel capitol hill, thanks. america's housing crisis may have been much worse than the experts realized. coming up, what we have just learned about how far the market really did fall and what that means for potential recovery. and reports of something happening in north carolina that -- north korea that has never before happened there. we will find out what's going down in that nuclear nation thanks to the journalists of fox news on this wednesday fox report. ♪ [ woman ] ♪ what i want this season ♪ if you'd like to try and guess ♪ ♪ it is something very special ♪ i would readily confess [ dogs barking ] ♪ 'cause all i want this season ♪ ♪ is something from your heart ♪ la da da, la da da [ male announcer ] thinking of others this holiday season, travelers. ♪ in her eyes... the world is never too big. in his...the weather should never keep you inside. ♪ because they see no limits, there's eukanuba nutrition designed to help their body go as far as their mind wants to. eukanuba. extraordina

>> shepard: mike emanuel on capitol hill. thanks very much. let's bring in an expert with us to break down the payroll tax battle what it means to us. the associated editor of barren's financial magazine. barrens is observed by the parent company of our network. all politics if you want tax cuts how do you pay for them. >> deficit hawks gig digging in heir heels and saying even though this is similar to the idea of extending the bush tax cuts which got done the idea of hey you don't want to raise taxes in a fragile economy, still you want to emphasize your ideological stance. and that right now is you have to have them so-called paid for by spending cuts. >> shepard: this went through the senate. they couldn't get the year deal. >> right. >> shepard: republicans to the tune of 80% agreed to two month extension so they could get it done after that. >> right. >> shepard: everybody was cool with that in the house. all of a sudden for political reasons, the house said no, we have got to have a year. knowing the senate has already gone and they can

>> shepard: mike emanuel on capitol hill. the presidential candidate newt gingrich says if it were up to him, judges who make controversial rulings would be subpoenaed even arrested. and gingrich says in his opinion it's based on what the founding fathers would have wanted. details and the response from critics, including those in his own party coming up. and the mother of a missing toddler says she has had some questions for the little girl's dad. that's ahead from the journalists of fox news on this monday fox report [ male announcer ] in his eyes...a race needs no finish line. ♪ in her eyes... the world is never too big. in his...the weather should never keep you inside. ♪ because they see no limits, there's eukanuba nutrition designed to help their body go as far as their mind wants to. eukanuba. extraordinary nutrition for extraordinary beings. see the difference in 28 days or your money back. forty years ago, he wasn't worried about retirement. he'd yet to hear of mutual funds, iras, or annuities. back then, he had

mike emanuel is on capitol hill for us tonight. mike, the two sides seem rock solid in their positions. the question is will one side or the other give in? where does it stand? >> shep, it feels like the senate democrats and the house republicans are staring each other down and everybody here on capitol hill is waiting for them to blink. let me give you a taste of what the tone was like at the end of the day on the house floor. take a listen to this. >> the house has acted. it's up to the senate to stave off this. >> there is clearly a difference in this house on a number of things. one of the things that i don't think we differ on is a confidence or a lack of confidence that the senate will do its job. i don't think we differ on that greatly. >> that's when you think each guy would be wishing each other happy holidays, merry christmas, see you next year and they were still slugging it out until the very end, shep. >> shepard: what about rank and file members, mike. where do they stand? >> i should point out we saw them busting out

mike emanuel on capitol hill. the president has a problem with something else that's in that bill? >> that's right. harris. to win conservative support, essentially house republicans are trying to force the administration to allow construction of the keystone xl pipeline project. labor unions allies of the president are in favor of building the project because they feel like it would create jobs. some environmentalists who are also allies of the president are against it. here is a key white house ally on this issue. the president has said he would veto a bill. that doesn't make whether decision for or against it. it has no place on this bill. let's get serious. >> senate majority leader harry reid in the ♪ says this bill that the house republicans are working on is a partisan joke and insists it has no chance of passing the senate, harris? >> harris: mike, i seem republicans seem rather energized by the republic' decision that he would reject a bill with a pipeline included. >> that's right. we have heard from multiple republicans who say by the president being so vocal, they are

mike emanuel live on capitol hill for us tonight. mike, democrats clearly happy about the deal. what are they saying tonight? >> well, jamie, they are acting like they feel like they won this fight. they are obviously quite happy that taxes are not going up on some 160 million americans starting january 1st. the democrats say their negotiators are also prepared to get to work soon. meeting with their republic counterparts trying to hammer out a longer term deal. the senate majority leader harry reid had this meigs sage for some of the house republic freshman. >> i hope this congress has had a very good learning experience, especially those who are newer to this body. everything we do around here doesn't have to end up in a fivment that isn't the way things need to be. >> of course heading into an election year the fights may only get worse after the holidays. jamie? >> jamie: yeah, you think. tell me about house speaker john boehner in the meantime, mike? >> very low profile today, jamie. he took questions last night. today, the only time he did any talking was when he was carry