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Welcome to another additional special report on line I'm Bret -- thanks for joining us here in our new location on the Fox News web page.
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Obviously there's all kinds of reaction to that intro as the -- takes.
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But we'll figure it out with that let's bring in our penalty -- columnist for fortune magazine Juan Williams comes with -- hill.
And syndicated columnist Charles crap okay we're going to start tonight with Egypt we had to -- Guests tied -- the opposition former member of the political party here free Egyptian party can Egypt telling us about two.
Their thoughts Charles your thoughts on that and where we are on Egypt at this moment.
Well right now I think -- we have to do.
-- to resist the impulse to act because it's changing hourly.
He looks as if we may be in the place -- the brotherhood after the -- killings that occurred.
The last few days ago may have decided that it's not prepared to go -- war.
It's not gonna join the coalition considers a new government illegitimate but -- that could give.
The military government with the president ostensibly.
Independent but obviously an -- in the military.
If that gives them -- -- Time to put together.
I government of bureaucrats.
Say there's a fairly representative.
So that it can prepare for elections I think there are bad things to -- is that there are no options.
There would be superior cost cutting off aid would be a mistake.
If that's the process that's the best of the -- of these not so good.
-- options in front of us backing the brotherhood is obviously would be a catastrophe.
The egyptians in the streets themselves have rejected it.
And cutting off failures this -- -- our attempts to influence -- government and would weaken -- at a time when Indonesia and in fact the saudis.
And the UAE.
I've given large amounts of money because the government is losing foreign exchange.
It subsidizes the food in the transportation.
And the cooking oil and all that if you take that away.
You have complete disintegration.
So I think it's a steady course who we encourage.
The interim government and we try to push for elections I don't see any other action that the US can -- and he he may be.
That the violence to civil war that is possible.
Will not happen that depends entirely on the brotherhood.
If it decides is in 92 and Algeria.
In which the brotherhood in Algeria has launched -- war -- bloody war which they lost.
With tens of thousands of dead over a decade.
If it decides that would be their -- which I think they may be deciding.
Then we could have relatively tranquil.
Transition so essentially you're saying do what the Obama administration is doing right now.
Yes this is one of the rare times when the clock is stopped.
But -- words twice today gets it right.
I think it is being cautious because any precipitous action right now what anticipated future that we simply can't see it.
Okay original John in Texas points to me saying at this point your guests you had on tonight is no longer in the opposition.
Fair point they're trying to form an interim government but just for the sake of terminology.
Column tied -- the opposition on the ground.
-- your thoughts on this you know the situation as it's developing and and where the US is -- and where we have been in Egypt.
Well I just want to say that with regard to that interview I found that here you illuminating.
The question that you asked about the US ambassador and her statements.
Indicated how treacherous the situation is that you saw the United States the Obama administration this case.
Trying to do outreach to the Muslim Brotherhood.
While -- he was in office trying to influence them and trying to indicate that the United States despite the very bad past.
Was open to talking with them.
And what we know now in terms of the history is that the United States.
Was saying to more seat all along -- expressing those final days before the military acted.
That if he was willing to make some changes they were willing to argue with the military against.
Taking control -- -- didn't act.
Because we -- this council of guidance or whatever which -- some older Muslim members of this Muslim Brotherhood who were telling him to defy.
And -- -- -- and to ignore the will of the people much less the world the United States but somehow in the midst of this -- the United States loses credibility not only.
We didn't have an incredibly in my opinion with the Muslim Brotherhood and they don't have any credibility left but sacrificed -- credibility.
With the man on the street in Egypt and that to me is just sad and -- and it and it.
Lessons -- influence clearly the military is our point of influence and they're the best and most trusted.
You know -- -- part of government in Egypt so that's all we can do this.
More 1 Melvin am writes why are we sending jets to an unstable situation that news for F sixteens.
The back end of the one point three billion dollars that sort of been committed.
Will go out to Egypt soon -- -- I guess there are questions about you know continuing foreign made at this point.
In an unstable situation.
Dicey and dangerous situation I mean yes the military is popular yes as your in your guest made it clear he's pro -- pro democracy opposition parties.
Are turning to the army that I as I keep saying what the army give -- that can take it away.
I mean you can put in a coalition government that loses support -- people pour out in the streets and it's in the army's hands against the army is the only institution.
That can actually run so to speak because it's.
Already an -- Aaron dysfunctional that the economy the TV and the army largely runs the economy.
And it runs internal security.
It -- -- you know to the extent that they can you know keep people feeling safe and so on if they're not being arrested by the army.
You know if this is all -- dangerous dangerous moment in terms of the and that -- it's interesting the couple developments this week.
It is as Charles mentioned the saudis and UAE are pouring billions.
Now keep in mind you also have billions coming from cutter supporting the Muslim Brotherhood which -- -- out there for about for months so.
Actually our leverage and I I do think we should use the leverage that we have whatever you do you know the financial aid we have we should use it as leverage to push for elections.
But our leverage has been substantially reduced with that of that competing this competing billions coming in.
We're only at one point three billion just to put it in perspective how much how much influence over at this point -- -- -- you know realistically what -- think of what the Obama administration has done.
Realistically there is a limit to how much influence we can have.
-- Buckley writes why are we and Egypt better off with Mubarak.
Jackie in Pennsylvania -- so why -- more she win in the first place.
Well no question -- why he want and I mean.
What you had was this situation with more -- where you had you know sort of Middle East dictator.
Mubarak was not popular with the people the people in fact returning to the book to the brother.
-- -- -- -- -- -- -- -- -- -- It was and the most organized and it's been called it the most organized Muslim Ngo.
In history and even part though because the Bush Administration did not.
Foster opposition opposition -- -- so there was no opposition is going to question.
How they won the election and they were the most organized they proved that they couldn't -- -- they were less organized than the other piece remembered all of us.
These opposition groups.
Are really and they're not organized and they actually think they they undermine themselves over the past year by pulling out boycotting some of the -- -- along the way.
So to -- I mean worry that we're being Pollyanna and I think that all of these groups are gonna come together and form this functioning coalition government.
Brian in Atlanta the Egyptian military is the only stable entity in the country I should point out.
Charles about 708.
You agreed with President Obama and the current situation -- men and women agree strongly.
And Democrats and Republicans were split.
Then Democrats came around and supported that may just be a delay in realizing that possibly Charles Krauthammer was -- -- was President Obama and.
I sort of expected on the -- I would -- zero at that point.
Good look I think what's happening it is true.
Egypt isn't the only country where the only really functioning institution.
There's a military that's also true in Pakistan.
And we have a troubled relations with Pakistan.
Every once in awhile but the military decides to be elected civilian government is corrupt.
-- and reliable or whatever.
And he takes over but the best example of how that is succeeded.
Was in Turkey for eighty years to have -- secular revolution at the time early in the twentieth century.
And the army became the guarantor of the state.
And of the secular state so in the seventies and eighties they would occasionally.
Toss out a government -- -- either incompetent.
And then restore order -- that went on until -- -- And they don't want realize that the only way that the Muslim islamists which is what he represents so he's a mild form.
Would succeed is that he's spent a decade.
In some ways weakening.
In -- trading.
Putting generals on trial of some of them.
Trumped up charges so he's been able to.
Weaken the military to the point where they no longer a challenge and that's a whole new area but Egypt isn't.
Anywhere near there the brotherhood try to achieve in one year what they're doing achieved in a decade.
And that is why the military reacted they were saying yes you've got elected but you are not going to change the fundamental.
Nature of our society.
-- -- -- Got more things before move onto the next topic the IRS I mean everyone seemed to agree with -- You when you said pro democratic parties -- -- the weak position Democrats Republicans men and women.
Agreed heavily one when you said the president tried to outreach to the Muslim Brotherhood men.
Liked that women didn't Republicans and independents Democrats.
Seemed to not like it overall but when you said state credit department credibility in the Arab street is slow Democrats.
To -- -- on.
As he would expect perhaps.
Let's if you haven't read this this post.
My blog the daily -- you should go there check it out it is from the perspective of somebody and Alexander who tries to put the whole thing.
Can US terms in American terms.
So if it's President Obama that was doing what president -- was doing how would we judges then so.
Go to daily bread and get to it right here on the website.
On especially for home page you can read the whole thing essentially post.
-- -- -- -- -- -- -- The equivalent here would be and intend to impeach a president who trample the constitution.
Which is exactly what the Morrissey was doing.
Remember -- shortly after his election he declared himself above above the coincidence of the parliament.
Here you would get in peace and because we have institutions.
And we have a history we don't have those institutions.
In -- country like Egypt or in the past in Turkey or Pakistan.
And that's why the military.
Which sees itself as the repository of the state acted that way and I saw -- -- causes.
When he located at courts of -- Punitive cores while he dissolved the Supreme Court is becoming more she did.
Your -- cards don't -- intent here is vixen.
Think the economy was going to -- the average guy was hurting.
Under -- tourists weren't coming which I believe is like ten plus percent of the economy.
People no longer felt safe and secure.
In Egypt and and the you know that them the big advantage that the egyptians have as they have in in terms of the Middle East a strong middle class.
They have strong universities they have educated people.
They have a sense of the global picture and -- -- and the brotherhood.
Were anti -- they they were trying to take them back in time.
But it just went back to this this and let's not get -- Pollyanna about the future is these dysfunction in the economy.
Are so -- they're not gonna go away anytime soon and end this next government is gonna have faced the same challenges.
Yeah but they do you have the benefit of gulf states -- putting and billions now above thirteen billion from Saudi Arabia UAE Kuwait.
And others at least a holding a glass half runners could run -- -- to be president of Egypt.
At this time -- -- IRS there's an effort in the house to cut the funding for the IRS pretty significantly.
Obviously the IRS is tied significantly to obamacare and the implementation of it.
That's one possibility but also with all of the scandals all of the mismanagement all of what many call.
The competency problems of the IRS.
They're saying they don't deserve the money -- hoosiers dome.
If you want to rein in the IRS.
The way to do it his tax reform.
You change the code.
Which is unbelievably complex.
And because it is any ordinary American who like us has no idea.
Had to do -- taxes so we have to hire people who do it.
And it gives the power over to the bureaucracy.
The IRS agent and we saw how arrogant but they were when they testified.
To congress he gives all the power in their hands you make the -- a simple one.
You make it easy to understand.
You you reduce all the loopholes and all this stuff that is that empowers a bureaucracy.
And then what you've done these you weaken the IRS to the point where it becomes.
Fairly irrelevant imagine if you did the back of the envelope a fair tax or something equivalent pleaded consumption tax you wouldn't have -- in your lives at all.
-- reducing the amount that it gets.
At a time when the code is what it is and you need thousands of hours and thousands of regulation -- -- analyzed.
Makes no sense this is a historic opportunity.
On the discussed Americans have with the IRS the access.
The way it acted outrageously.
All the things that we have seen.
And save the answer is to change the -- -- the IRS becomes an auxiliary.
And neither of an engine of your life a lot of people here.
Are agreeing -- -- fair tax flat tax.
The only answer to the IRS.
Go to a fair system done H a lot of people typing and that -- The -- -- that consumption tax as discussing consumption tax which we don't talk about much but -- consumption tax is actually something that favors investment.
And favors end and our tax system now it favors debt.
Found and it doesn't it that it distorts the economy -- completely dispersing the business economy because certain industries are favored at certain points or other industries.
And there's been talk about lowering the corporate tax rate in getting rid of all that.
You know it would.
We should do that it be a bloodbath unfortunately you know between all the different interest.
But yes we should we should I think Charles is exactly right this shouldn't.
Take away its power the people on here agree 100%.
On all sides that.
People colors -- out how to I was hoping for a little bit more.
How do their taxes they worry that a -- in Atlanta she is a favorite she says thank you Charles.
Now how many -- doing here that are home good -- that's too much good good good good behind -- -- I was gonna say that a stopped clock apparently has been right twice because now doctor Krauthammer -- taken on the Republicans announced licenses today this is unbelievable Charles what happened to that.
And I speak the truth is my axiom say -- true.
Easier -- -- -- I know what you got to live with it but I'm I'm off court because I happen to think that your right on this -- but you know it's an indication of our politics.
That the Republicans in the house are willing to waste time saying they want to do away with the IRS -- -- now in this case cut the IRS substantially.
Well who's gonna you know enforced tax laws in the country who's -- -- collect taxes.
I don't understand and they know this is going nowhere and yet they're putting all this energy and time so they think it's a political winner.
And who they think it's a political winner with people were angry -- RS but I don't even think that's true.
-- Ohio to your -- -- this is there's no such thing as a corporate taxes all paid by the end user and consumers anyway.
It's this you know this is talk on both sides about reducing the corporate tax rate which is -- -- And it's not going -- because Democrats -- -- -- to bigger a bigger piece you know I agree with that section of the corporate tax reduction basically.
Democrats want to.
We use this as a vehicle to increase revenue from Republicans want to make it revenue neutral but Democrats -- -- some Democrats Wanamaker revenue neutral.
But you know it just it no one's been willing or able to take it on yet I mean this is something people talked about.
For for four years you know there's two trillion dollars still in corporate money sitting overseas yes some -- that has to stay over there because it's.
88 you know -- them investing in markets overseas and so -- -- some of that.
Is avoiding the tax rates here at home so let's bring some of that money home.
With a lower tax rate and get more investment here.
Some people are in a documentary a corporate tax holiday if you if you hire enough people.
Yeah I mean there's ways to.
Make fitness system wore the same firm.
And for companies and -- -- more active.
Can't -- -- house and senate Republican and Democrat.
Are in fact engaged in just be stopped there is energy -- But -- they administration's opposition no well nobody is pushing it outside right now it's gonna have to come from.
From the congress.
And you gonna have to get some kind of coalition in the congress that would support -- -- -- think that that's a possibility.
If you can get people say you know what the big ticket here is can we -- tax reform its -- it's possible.
You know it's important point -- that we have the highest corporate tax.
In the world really.
When it comes to you know business is taking on the channel lot of businesses have a lot of other options to go to the country's latest from -- Nobody pays that -- my I think it's I can't remember but I believe in percentages are single digit people who pay the full time.
It's about a friend.
The effective tax it because of all the -- is correct he had but it scares away a lot of investment I think the miracle is a wonder their economies as strong as it is.
Was -- it was an insane tax system I don't know I was over regulation -- -- county.
How strong the American economy is at its core that was all other stuff holding -- back -- -- is actually.
Too slowly gradually start to move ahead.
And imagine what it would do.
Who would react what when we have the 1986.
Tax reform which was one of the best pieces of legislation.
The last thing you know half century.
He helped to boost a quarter century.
Nearly uninterrupted economic expansion.
And that was no accident.
Well you know the latest you know given my eject -- forget things.
But wasn't had a Google or Microsoft just in here and he said -- here's the reason we don't pay any taxes whatsoever.
Well on their rights that well it's the -- run them all day and ruin it well Amazon's planet -- yeah.
And and GE you don't pay any taxes -- not -- well.
Faced that no Texas ally and a lot of that is money that it's kind of big distributor perceives him -- taxes which is just unbelievable given that they and say you know and they they're sitting on capitol at the time when this economy.
Would benefit greatly.
From any investment and job production.
I think Republicans -- who adopted as -- -- issue it's the only issue that I have ever seen where it be that it appeals to the left.
Because it increases -- -- the rich who have the lobbyists.
And create -- post and the accounts who exploits and it's nothing ordinary people if you listen to all -- this whole sense -- right.
You know they say that's where the meat of the money is and they.
That's exactly right and -- so he would appeal left.
And further right what it does it eliminates the -- -- which miss allocate.
Capital it goes and all the wrong places.
And if you take all of those away.
You get instead economic.
Expansion as a result of that -- I think at that capital is going after the tax havens rather than the investment opportunities.
It's left and right it's win win.
We've got to derive additional -- I think it's what you're saying -- the current system distorting.
Right so many incentives and he's doing here.
When you said that at 721.
The entire thing went up to agreement all sides except Democrats.
They didn't fully agree in this.
Hall got Taiwan women dropped when you say if you get rid of the IRS I'm going to when I was gonna enforced the law.
-- -- Yeah I hope not -- -- -- -- -- -- Thank you could have -- -- problem.
Here it's your war on women is yeah.
It is unrelenting war on -- Jennifer Rosen says I want the ninety's back.
I think when it comes to taxes you know all those lines about you know the Clinton tax code.
And getting back to the Clinton -- And raising taxes on the individual -- to the Clinton numbers if you went back to the Clinton spend.
-- be in a much different places there.
We really have to look at.
-- you know both revenues and spending as a percent of GDP and certainly spending as a percent of GDP is gone up substantially since since the -- OK final topic.
Big story of the week -- you think -- -- The coming week I think we're gonna see.
Egypt will probably within a week tell us which -- it's -- his I think the brotherhood right now is trying to decide what highly responsive.
The killing that happened the other day and are they stronger than they want to go underground the American enjoyment government.
Friday if they decide to go over armed rebellion or you know the mass demonstrations over and over again to provoke.
These riots in massacres.
-- could be a -- situation I think within a week when you know and we might have relative stability.
If -- have -- they'd make a decision that they are not in the position.
To go into challenge to government in the streets.
Andy North Carolina says Zimmerman acquittal will be the big story.
That's possible I -- their other.
Out there you know what Mandela dies or.
This airplane has been a consistent that airplane crash in San Francisco seems to have been -- consistent topic of focus -- -- -- I was little surprise when it people are fascinated by.
If it turns out that -- somehow related to the system in the 777.
That the computer override had some effect to slow the plane down.
That's going to be a big problem not only for.
That airline but for.
For the airline.
About manufacture and -- -- -- -- -- well.
I'm personally probably -- on Martin and I feel like you there's so much fixation on this story that people are missing the fact.
Written and what's happening in Egypt for example which isn't just about Egypt -- about that potentially the entire Middle East.
And what's going on with obamacare is -- -- as we mentioned before is.
Justice is on -- focus on I think we're missing the big stories because for separate fixated on this one.
Confronted every another -- here.
When you have the high point of the night with men.
Taking loopholes -- -- -- conference.
You flatter -- -- grateful my point is that we did next time you want and I can you when it comes along the current -- There's no religion because in my tie donation yeah I voted for it.
You may want to know that you all -- want to have your friends fan I was.
No no -- family I don't know.
I I I think I delight in the fact that we get reaction that and I hope that people are that this is high quality conversation for TV I don't know what else you -- this is pretty good.
You did you work -- the woman.
And I was there and know your -- work.
Final thought these -- story.
Yeah there was -- Rail carrier in Canada that carries oil.
It had a terrible accident that wiped out a part of a town called back.
Wiped -- out there about fifty people who are you missing because probably.
The the bodies are not recoverable.
We're disintegrated this was a a massive accident.
And this is in competition with pipelines.
So we're having all these arguments about pipelines and ecological.
In the -- of the pipelines like the excel he's going on rail which is unbelievably.
Out there ourselves -- -- -- -- -- -- fifty that they haven't found they can't find these people because they were incinerated I mean this is such and it made it.
He was hardly covered anywhere.
But it highlights how people who believe you know -- want to protect the planet.
I just absolutely neglecting the human factor here which is if you don't have a pipeline you're gonna have to move you -- some way.
And if it's on -- it is very dangerous.
OK with that to we will leave you tonight which then let us now.
On the blob on email on Twitter at Bret -- tell -- what you think of this stuff format.
And yes -- impulse control room -- -- goodbye and this is going to be a high point look at those waves.
All -- great.
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