aring evaluation. larry: so, biden's tax and spend budget good news for the gop in 2024? liz: happy friday to you, good to see you my friend. here is why this white house has got to go. treasury secretary yellen is not denying biden's new irs will audit you.

and tens of thousands of government workers just got caught not even filing their own taxes. with us tonight, congressman tim burgess. the "washington examiner's" grover norquist and east palestine residents. and gop senators name it pentagon officials who allegedly leaked about the spy balloons under trump. i'm liz mcdonald. "the evening edit" starts right now. welcome to the show.

stocks rattled today over the news of the silicon valley bank collapse. the. names like first rub, charles schwab. the u.s. economy added. inflation is wiping out your wage gain for two years straight. edward lawrence is live at the white house. reporter: the silicon valley bank, the treasury secretary is talking with federal reserve members to see if there is a cascading effect that could ripple through the financial industry. this was on the day we had a

strong jobs report. it made it a tossup to raise rates for the nighttime, 25 or 50 basis points. 311,000 jobs created. wages are up, not keeping up with inflation. so i asked the white house economic advisers about that. >> inflation has been outpacing wages for about a year and a half. when can americans expect that to reverse? >> we just got the blue chip forecast today. they were expecting inflation to be easing to 3.2% by the end of the year. reporter: the federal reserve has been finding it harder to get rid of inflation. leisure and hospitality added

back 500,000 jobs. but transportation and housing lost jobs, manufacturing also lost 4,000 jobs. the president getting ahead of the next inflation report wednesday. it could be flat or hotter than expected. >> i said we'll see blips going up. but i feel confident that we are headed in the right direction. and there is a lot of talk about what the fed will do. reporter: the federal reserve look at .25 or .50 basis points. liz: joining us grover norquist. and byron york. byron, this economy went upside down.

under trump it was growing 6.4% in the last couple quarters. 1 to 2 percent inflation. now it's growing 1 to 2 percent under biden. what do you think? >> i think the biden administration was a shock to the system for the economy. and there were other shocks to the system like covid. once democrats had full control of washington, d.c., the covid spending within the infrastructure spending, the build back better spending. if it were to happen, the spending in the president's new budget has simply shocked the system too much. what we are seeing right now its a system having a hard time adjusting to the new reality of $7 trillion budget. liz: americans deserve better.

this is what they are dealing with, grover. this is why the white house has to go. watch treasury secretary yellen. nine out of ten new audits will be on middle class and working class families and small businesses. not millionaires and the tax cheats they are talking about. >> are you talking about the total number of audits or the proportion of audits on families and small businesses under $400,000? >> i'm talking about the proportion of those small businesses and families. >> 90% of the new audits will be according to the data that we can expect up to 90% of new audits to be on those making less than $400,000. >> the purpose of this legislation is to vastly increase the audit rates object

high income, partnerships. >> but the date a reflects it's broader than that, especially given the number of personnel. liz: i covered the irs for 20 years. the little guy can't afford rich lawyers or tax accountant to protect them like the wealthy can. that's why the middle class gets hammered with audits. the treasury secretary just testified to that. >> the treasury secretary is throwing away her reputation as an economist because she is forced to go out and say things that are wholly political and often not true. what they have done is they tried to talk about taxing rich people, and in order to distract you. then as you saw recently they are figuring out how to go after people who make their money on tips.

waiters, waitresses, taxi cab drivers, people who do your fingernails. they are only spending $3 billion on answering the foins and $45 billion on middle class americans. liz: . he wants to get rid of the trump tax cuts and pulling back on a regulatory state that so helped the u.s. economy. it's equal to 20% of gdp. that's what americans paid in world war ii. this is war time spending without the war. the top rate goes back to nearly 40%. this is the way of prosperity and growth in the u.s. economy? >> the proposed budget is like the old build back better bill.

it's a campaign document. but what you and grover were saying, the reason the administration is going after middle class taxpayers is because that's where the money is. we have super wealthy people and they should pay plenty of taxes. but in terms of the larger amount of money and tax revenue, where it comes from in the united states. it comes from the broad middle class. that's why the schemes are always sold as taxes on the rich but end up being tax on the middle class. liz: he mentioned climate 13 times within equity 9 times. gas prices 4 times. parents just three mentions. fentanyl gets mentioned twice. he wants 87,000 workers and only 350 border acts.

but when he said we are in a recession, i want your reaction to that. watch house speaker mccarthy. >> my budget cuts get rid of tax breaks for the oil companies who made $200 billion in profits in the midst of a worldwide recession. >> he's been a month late with producing this budget. all this democrat spending brought us inflation and problems attacking energy. it costs more than a dollar a gallon from when he took office. he added $6 trillion already that brought us inflation. brought us a financial crisis. we have debt equal to gdp of 120 percent. liz: i want the viewers to be

aware of this red flag about recession. forced first time since 2007, the two-year treasury field is up 2%. this is the deepest inversion in four decades. the last time we saw that was when paul volcker was rapidly raising rates. does the white house see a recession around the corner? is that why it's all this spending? >> the tax increases he wants will not pass because the republicans control the house. so -- but, he wants to act like that wouldn't come to anybody if it did. it's a political document to appease the left. the challenge is he will get some of it because the democrats run the senate and he has the ability to veto anything. and he wants to take us back to

the future to jimmy carter's level capital gains taxes which bipartisan voters had to cut in half. and the bipartisan congress also rezeused. the position he's moving to are too far to the left of the modern democratic party just two years ago. liz: let's welcome back to the show, l liz peek. the inspector general found 42,000 federal government workers repeatedly failed to file their own taxes by the irs. they are paid by taxpayers so they don't file? that's what's going on inside this government. what do you think, liz? >> it's worse than that.

all but 150,000 government employees are cheating on their taxes. the irs is prohibited from telling any employers, any agencies how it is that's cheating on their taxes. and we can't fire those workers. congress tried time and time again to put through a bill that would allow employers in the government to fire workers to don't pay their taxes? there is no accountability. this gives basically the idea that we are only going after high income americans. that's the only group that cheats on their taxes. we know it's not true and this points that out. liz: there is this. mitch, biden wants tens of millions more for his climate push. the united states is lowering its emissions.

china and india is responsible for the majority of emissions in the world. so why are u.s. workers getting punished? >> because he has some control over the united states and has zero control politically or otherwise over countries like china and india. china is still building coal-fired energy plants, as we speak. in the united states we can't produce clean burning natural gas because for some reason that's a no-no. it's like bizarre-o world. his * then he's not middle class blue collar joe. gm is doing buyouts for a

majority of its workers? >> i think we are crushing our auto industries in enforcing this switch to electric vehicles. in making an electric vehicle, there are far few workers involved to begin with. the auto workers union, i'm surprised they are going along with it. there will be fewer jobs down the line. but that doesn't even include workers in the coal industry and pipelines, et cetera. this climate obsession of joe biden is the most damaging thing we are doing to the economy right now. that's saying a lot because our economy is under pressure. none of this is going to happen because backlogs are up that you can't build a transmission line and wind farm. these projects are on hold now and have been for five or ten years. it's a fantasy world joe biden is living in.

taxpayers will spend hundreds of billions of dollars. liz: where is the money going. china's pollution levels are three times higher than ours. no one knows where the hundreds of billions of dollars are really going. it's going toward left interests and political cronies with no accountability. mitch? >> 100%. whenever he crows about the infrastructure bill. the legislation is one thing. but if you look at the regulations used to govern how projects get built, they are unbuildable. the requirements they put on the construction company in terms of the diversity of the workforce or the green energy they have to use. you can't build projects that way. they pay consultants to figure out if it's doable. >> thanks for spending your

friday night with us. we have news coming in, the debate and the read. the name of the pentagon official who allegedly leaked to the media about the spy balloons under trump. the ftc reportedly hires an activist in its probe. [♪♪] liberty mutual customizes your car insurance so you only pay for what you need. with the money we saved, we tried electric unicycles. i think i've got it!

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liz: facebook's parent meta announcing it will cut 13% of its workforce on the day the big bank, silicon valley bank failed. and the white house has still not commented on that. there are multiple round of layoffs coming in at facebook. now this story. the house did pass that censorship bill saying

government workers cannot be engaged in censorship on the internet. it would slap fines and penalties on any government worker doing that. we have kelly live in los angeles. >> it's great to see you. that bill you mentioned is called the protecting speech from government interference act in direct response to the censorship examples that have come to light. a federal employee may not any violation could consult in suspension or dispartment and penalty. in the twitter files there were examples of government intervention.

taibbi said they often came from spreadsheets that were deleted soon after. it has strong opposition from house democrats. liberal lawmakers questioned the integrity of the twitter files journalists. >> you can take off the tinfoil hat. ordinary folks and national security agencies responsible for our security are trying their best to find a way to make sure our online discourse doesn't get people hurt. >> democrats that oppose that bill shared it's unnecessary when the first amendment exists. but the battle for free speech is alive and well. liz: let's welcome to the show, jessica melugin.

more twitter files released that government officials tried to censor on youtube videos have anti-ukraine narratives, they wanted to censor robert kennedy on vaccine mandates, and a iraqi vet speaking out against war. how can they say this is not a problem. >> i don't think they can with a straight face. we have regulations against government employees election work in their official capacity. i can't imagine this would be much different. this is saying you can't use the strong arm of the government to do what the government would otherwise be prevented from doing according to the first

amendment. liz: biden, democrats, the white house, they have become the party of censorship silencing voices to control the narrative to their benefit. the ftc just hired an acrosstivity rift who lobbied. requiring elon musk to turn ovem of what's going on at the ftc for sure. and i think the twitte called paranoid and tin hat wearers. there was a government role in pressuring the taking down of information. it's inappropriate in a free

society. liz: let's get your reaction to the twitter files journalists testifying the government industry controlled the narrative on social media. >> this kind of thing where the government is looking for information about reporters is usually a canary in the coal mine that something worse is coming, an effort to exercise control over the press. on that level it's disturbing. >> i never thought in my own country freedom of speech would be threatening this way. they have been building out mechanisms to proliferata a censorship industrial complex. it's not a slippery slope. it's an immediate leap into totalitarianism to gain control over what the social media

platforms are allowing. liz: the twitter file journalists are saying there is a government-wide push to censor from dhs to cia to hss to multiple government agencies. that there are perhaps 20 quasi non-profits demanding twitter do the same. these are typically run by democrats. democrats attack the twitter journalists saying, you know, you are doing the bidding of elon musk, you are not journalists, and so forth. what was your take when you heard all of that? >> i mean, the hypocrisy is right on. it's sad that this has become a partisan issue. both parties, republicans and democrats should understand the value of freedom of the press. no matter who's in charge.

things change. the twit arer files are a great example of that. we know a lot about what was happening. we should be paying attention to this. liz: jessica melugin thank you for joining us tonight. the president and his budget only mentions fentanyl twice. mexico's president obrador is attacking the push for u.s. military action against drug cartels. coming up, we have congressman tip burgess. one of his constituents was killed. he was one of the 13 u.s. service members killed in biden's botched exit in afghanistan. we'll get his read on that and

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liz: the house gop is ramping up the investigation into the president's disastrous exit out of afghanistan. >> he said he had the suicide bomber in his sights but was denied permission to fire. he described what happened next. >> i'm thrown 12 feet on to the ground. i opened my eyes and saw marines around me dead or injured.

there was a lack of accountability and negligence. reporter: the world will forever remember the hasty pullout because of this video among others showing desperate people trying to board the plane. many were hoping bagram air base would return in american hands to keep the taliban out of the area. there is a growing bipartisan call to do more to counter china. the director of counter intelligence issued a presh warning to the chinese communist party. it's ambitions and capability make it our most serious and

congressional intelligence rival. liz? >> thank you so much. joining us now from house foreign affairs. congressman, what do you make of lucas' report. one of your constituents, a soldier was one of the 13 troops killed. what do you make of that and lucas' report? >> thank you for calling attention to this. the staff sergeant is not only a constituent but i know his family and they are wonderful people. you have a marine sniper who has this terrorist in his sights he's eye bawling. military intelligence told him what this guy looks like. describes him to a t. he has him. he calls his spearers and they say no, stand down. it's a failure at the state

department, a failure of leadership in the marine corps. ryan should be alive today with his new wife and instead he's buried at arlington. we need to just start over with that bunch of clowns. liz: this story that basically politicizing chinese spy balloons. senator rubio sent a letter to saying it's a brazen attempt to shift blame away from the biden white house mishandling that national security risk. what's your reaction to that story. >> every member of the trump white house i talked to from

generals to staffers has said the same thing, liz. no balloons flew over. this is a complete disinformation. the communist chinese have got their tentacles into this. sometime we'll have to wake up and realize what is going on in our white house, in our military industrial complex and in congress with the communist chinese. it's not just a border country that is abusing its own people. they are in our country operating our oil wells count coast of florida and other places. we need to start digging a little more and we'll find out it's a lot worse than we ever thought. liz: it's a story of how the media is letting itself get turned around by the biden white house. the white house was bullying the

media, don't report on the hunter biden laptop story. now they are turning the media away to still go after trump. the leaks showed up in the "washington post" and bloomberg to shift blame away from biden's national security risk allowing it to crisscross the u.s. before shooting it down. the senators say they seem to be spearheading a communications strategy to hide the white house's early mistakes and missteps. this is politicizing classified material. >> you have a general who basically told our president no he would not shoot the balloon down. the same general that was secretly negotiating with the communist chinese in the trump administration when trump didn't even know it. you have got a real problem there. it's not ending anytime soon.

it will not end pretty. the media is in bed with biden because the liberal media elected this guy. he's an invalid. his cognitive level is not anywhere near where it needs to be. i think that's apparent. they elected him, they got him, and they have to keep blaming trump. liz: the media is calling this biden's katrina moment. we have news on the east palestine ohio tax i can train crash. ashley moody is demanding bid take action on the mexican drug cartels. >> he's more interested in representing the cartels than the mexican people.

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liz: look who is back. florida attorney general ashley moody. you were one of the 20 republican ags who signed a letter demanding the white house take action against drug cartels. what was your reaction when the president of mexico claimed, it's not our drugs, it's not our fentanyl. >> i think many of us involved in this for decades. i used to be a prosecutor. i have been a judge. i was in disbelief. the overwhelming pressure he must feel. it's almost like it's a hostage statement saying fentanyl isn't being produced in mexico. since biden took office border patrol intercepted enough fentanyl at our border to kill the entire u.s. population 20

times over. to hear the mexican president say it's not being manufactured in mexico, he must be under a lot of pressure the cartels. they have influence and invoke fear. the white house said no illegal immigration is happening. majorkas says there is no emergency, we have it under control. we won a suit this week where the judge said it's like we have a welcome, come in sign and it's like a shine in the stands. liz: we have the white house press secretary saying fentanyl is down at border when 100,000 americans die from drug overdoses every year. kids are dying at record level.

>> the 18-45, it's the number one killer. the fastest growing demographic is ages 5-14. we just had an infant die in a house where fentanyl was left where they were renting. even our k-9 officers, our dogs are overdosing on fentanyl. the sheer vol in our country is causing this crisis. even biden's dea says it's coming from these cartels in mexico. so we have to start treating it differently. liz: the president only mentions fentanyl twice in his budget. he has 87,000 irs agents but he only wants 350 more border agents. >> it's an astounding lack of

leadership or care for what is really happening and destroying the stability of this country. look how many times he brings is up to other world leaders. he doesn't like to say fentanyl because it's the biggest embarrassment of this administration, its biggest failure. liz: thanks for joining us. coming up later in the show. my hot take. the media its calling this biden's katrina moment. the east palestine train crash. before we head to break let's check in with dang and sean to n and sean to see what they have coming up. dagen: .

sean: breaking count disastrous biden budget. budget. dagen: timpf and failla putting her foot in her mouth again, hanoi join. ♪ ♪ ♪ voltaren. the joy of movement. ♪ ( ♪ ) the future is here. we've been creating it for more than 100 years, putting the most advanced technology into people's hands. generation after generation. tool after tool.

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liz: joining us east palestine couple, the epa, cdc, county health department were there, what is the news coming in now? >> the same as it's always been. not a whole lot. we don't have a lot of information. we are not getting any answers. and just the same as it's always been unfortunately. >> the frustration just keeps growing. they are keeping us in the dark. >> we are seeing the news coming in that the epa is restricted to monitor for only a limited list of contaminants in the environment. even when they do that, the bureaucratic process validating and finding out what those

contaminants are could take years. this is after the epa has been found to not be testing for dioxin. what do you feel about that, russell. >> i guess they are supposed to start testing for dioxins late sunday or monday. nothing like waiting 32 days later. plus the university of georgia, they are up here detecting stuff in the air. and they are detect it in water. they are chemicals the ema -- te ep pa aren't even looking for. liz: nbc reporting the president is not agonizing over not going there, when he went to ukraine, and kentucky.

but you can't go to ohio. >> i don't think we get to tag the name biden with any moment connected to this. he doesn't get a moment with this because he hasn't given us a moment. maybe if ohio identified as ukraine we could get a substantial amount of funding. but we are just a part of the united states of america, and tax paying citizens and this is the treatment we receive. liz are * senator harper grilled the ceo of norfolk southern. >> will you agree to pay for the treatment of anyone known to have been exposed is monitored for adverse effected? yes or no. >> i'm committed to doing what's

right. we'll be there today, tomorrow, a year from now, five years from now, 10 years from now. liz: he did not directly answer. he says he's committed and he's promising $21 million in fund, but he's not answering whether he's going to do long-term testing. where is the victims' compensation fund like obama set up after the bp oil spill. >> not one time did i hear anybody show concern for the symptoms us and the other residents of the community are dealing with. he didn't bring it up at all. mr. shaw then replies to me, they lack empathy and compassion and it sound like they were rearranged answers. liz: my hot take is coming up next. stick right there.

or here. even here. or you could see, everything that could be. go. baker tilly.

>> here's my hot take it isposia president biden and showing exactly how not to lead but there is light at the end of the tunnel that he created house gop will say no to his nearly $5 trillion in tax hikes and small businesses is going to go nowhere americans are waking up, the polls show the news of this

of the budget and also this more than 42000 federal workers repeatedly failed to file their own taxes. americans don't like this and also despite inventions collided unto climate 13 times, equity nine times eight mentions of inflation and gas prices, that is a story, fentanyl only mentioned twice and the only allocated 40 million to fight in the fentanyl crisis that killed more than 70000 americans last year alone, the economy went upside down undivided 1 - 2% growth, six and half inflation it was opposite under trump the president cannot get out of the way of the economy he's become the far left, something's got to give that's why we want to get the show over to sean and dagen they have a hot bottom line show for you. take it away. ♪. dagen: good evening, everybody i'm dage