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This is a rush transcript from "Your World," November 9, 2021. This copy may not be in its final form and may be updated.

(BEGIN VIDEO CLIP)

KARINE JEAN-PIERRE, WHITE HOUSE PRINCIPAL DEPUTY PRESS SECRETARY: We're looking at all the tools in our arsenal. We're very concerned about the impact of high energy prices on consumers, especially as we enter the colder months.

And so we're continuing, like I said, to monitor the situation and we're going to do everything that we can from here.

(END VIDEO CLIP)

NEIL CAVUTO, FOX NEWS ANCHOR: All right, all the tools at our disposal.

Just what will they be, as gasoline prices creep and more commonly so at over $5 a gallon, as oil flirted in and out of a seven-year high of about 84 bucks a barrel? And it doesn't end there. We have got you covered in New York City with what's happening at the pump with Madison Alworth and Jacqui Heinrich at the White House on what they propose to do about it.

Welcome, everybody. I'm Neil Cavuto. And this is "Your World."

Fair and balanced, we're going to hear from a top Democrat on what can be done to address this situation. California's John Garamendi will be joining us, and then from the Republican side South Carolina's Nancy Mace on whether all of this spending is complicating things.

First, let's get the read on gas prices that will not quit with Madison Alworth -- Madison.

MADISON ALWORTH, FOX NEWS CORRESPONDENT: Hey, Neil.

Yes, gas prices are increasing across the U.S. Here in New York City, I'm in front of a gas station that is charging $4.99 for regular gas, quite the sticker shock here. But this is not an isolated incident. We are seeing prices go up from the East Coast across the country to the West Coast.

Let's take a look at what the price of gas is today. You're going to be paying on average $3.42. That is up over 60 percent from a year ago. Energy Secretary Jennifer Granholm saying Sunday that she hopes gas prices won't reach $4 a gallon. Well, two states, California and Hawaii, have already surpassed that milestone.

And there are other states that are quickly approaching that $4 mark. All of this is forcing Americans to change their driving habits and their holiday plans. According to a new survey from the American Hotel and Lodging Association, 52 percent of Americans say they plan to take fewer trips, and 53 percent say they plan to make their trips shorter because of rising gas prices.

The drivers at this station here in New York City are feeling the pinch. Watch.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Drive a diesel car, so I would spend about $50 on gas. Last week, I spent about $80 on gas, which is ridiculous.

UNIDENTIFIED MALE: I'm actually an Uber driver. So, for me, it's like I have to drive all day, no matter what. Gas is basically everything from for me. So the higher it goes, the less money I make.

(END VIDEO CLIP)

ALWORTH: Yes.

And so with OPEC rebuffing the Biden administration's request to increase production in order to drive down costs, and they're saying no, unfortunately, what we're now hearing from experts is that Americans should not be expecting any help at the pumps anytime soon -- Neil.

CAVUTO: Well, thank you for that good bit of news, Madison.

Madison Alworth following these developments in New York City.

Things have gotten so bad that the president got a letter from 11 Democrats concerned that all of this is moving too far too fast and that maybe now is the time to tap the Strategic Petroleum Reserve to bring the prices down.

Jacqui Heinrich at the White House with more on that.

Hey, Jacqui.

JACQUI HEINRICH, FOX NEWS CORRESPONDENT: Hey, Neil.

And, yes, to your point, one of the Democrats who signed onto that letter is among the biggest environmentalists, Elizabeth Warren. I will get to that in just a moment. But you will recall the president pushed the world during the COP 26 summit to cut back on use of fossil fuels, to curtail emissions, while simultaneously pushing OPEC to produce more oil abroad amid these spiking prices.

It caused his critics, the president's critics, to cry hypocrisy. And now there are more questions about whether policies in this administration are contributing to the rising fuel costs amid this decision that the White House is weighing about replacing a pipeline from Canada to Michigan and what impact that might have on the economy and on the environment.

Now, the White House says today they're not considering shutting down the current pipeline. That's an important piece to note there. But the Army Corps of Engineers is assessing a possible replacement for a section of that pipeline. It's sparking concerns about the impact on prices after the energy secretary said the cost of heating your home this winter is going to be more than last year

Now, the current Line 5 pipeline from Canada to Michigan needs to be replaced. It supplies 55 percent of Michigan's statewide propane needs right now. But its replacement is being studied for environmental impacts. And tribal groups and environmentalists, they want it to go away entirely.

A shutdown could mean about 45 percent less crude to Michigan, Ohio and Pennsylvania.

(BEGIN VIDEO CLIP)

QUESTION: Would a possible outcome from that study be a choice that limits output? And also what's the timeline for that study? I had seen some reporting that a decision could come after the reconciliation vote, and that could be as soon as next week.

JEAN-PIERRE: I don't have a timeline on the study. Again, this is the Army Corps of Engineers who are taking this under. I don't have anything more to share.

(END VIDEO CLIP)

HEINRICH: Now, the White House is also facing pressure from Senate Democrats to address these surging gas prices, 11 senators, including Elizabeth Warren, writing to the president asking for action, including potentially releasing barrels from the nation's emergency oil stockpile or banning oil exports.

The White House says it is taking steps to address these rising gas prices, including having the FTC say they will go after price gougers. But beyond that, they broadly say that they're monitoring the situation, Neil.

CAVUTO: Are they saying, Jacqui, when they wanted to address the gouging situation, that it's real, that the price run-up is due to gouging and not some of these other factors?

HEINRICH: They're not really saying that. They're saying they're going to investigate if that happens, so not quite making an accusation there, but pledging action if that were to be the case, a little looser.

CAVUTO: Got it. I hear you. All right, Jacqui, thank you so much.

Jacqui Heinrich at the White House.

To California Democratic Congressman John Garamendi on all of this.

Congressman, do you think any of this owes to gouging?

REP. JOHN GARAMENDI (D-CA): Historically, that's been the case.

I have gone through this situation with a spike in gasoline prices maybe four times over the years I have been in public policy. And it is sometimes price gouging by the petroleum industry. Check their quarterlies and see what they're doing on their quarterly reports. May give some information.

The idea of using the Strategic Petroleum Reserve is absolutely in order. We have done that before. We should do it again now. Beyond that, we need to transition. We're in a transitioning period. And you can see behind me the IBEW sign, the International Brotherhood of Electrical Workers.

I was at a meeting here with them talking about the infrastructure bill, and particularly about the power grid, the $65 billion that is in that bill to rebuild our power grids. And we certainly need that in California.

CAVUTO: So, the reason why I mentioned the gouging thing, because the administration did.

You threw it out there. And I'm wondering if it's being maybe pre- considered as an excuse, that this is why it's running up, having nothing to do with the administration's or the push away from traditional energy sources, as when the president shut down Keystone almost immediately upon taking office?

Isn't that where a lot of this started?

GARAMENDI: I think there's a lot of other things that are involved in this.

Keystone is a small, small piece of this puzzle. Beyond that, the pandemic and the shutdown basically shut down a lot of the oil industry and the gas industry. Demand wasn't there. And the petroleum reserves clearly were depleted during that period of time.

Of course, we have now opened up. It's like you're at a stop sign. Suddenly, it's a green light and everybody's hitting the accelerator. And that's a lot of the issue.

(CROSSTALK)

CAVUTO: But you would think, Congressman, right, you would think, if you knew that was coming, that -- you're quite right. We came out of a pandemic, so we were essentially flat. And anything that moves from that is almost like going to 60 miles an hour overnight.

If you knew that was coming, why would you curb Keystone or anything else? It just seemed like, in retrospect, something stupid.

GARAMENDI: Well, Keystone -- the Keystone issue preceded this administration.

But that's just a small piece of it. What we really need to do here is to think...

CAVUTO: Well, no, actually, it didn't, right? He shut it -- he was the president who shut it down, right?

GARAMENDI: But, yes, the issue preceded him.

The...

(CROSSTALK)

CAVUTO: No, it didn't. No, it didn't. He -- I'm not saying that whether that's his fault or not, but he was the one who did it. It wasn't Donald Trump.

GARAMENDI: Well, it -- whether he did or not, it would not deal with today's problem. It would be a problem six months, a year from now.

CAVUTO: No, but what I'm saying, Congressman -- I'm sorry to be rude here, but what I'm saying is do you think that set in motion -- because, as you know, sir, oil is traded on the markets, investors who bet on supply-demand issues, anything that comes in the price of that.

It's nothing to do with gouging, as much as it does with a market figuring that, with a supply cut or slowed, when we're booming out of a pandemic, it's not a good combination for prices going down. Quite the opposite, right?

GARAMENDI: Well, you just hit the right word, combination.

There's a combination of issues that are at play here, certainly, the demand suddenly picking up, the inventory way down. And there are those -- you mentioned two pipelines. Those are all parts of the puzzle.

But, Neil, we have got to recognize we're moving away -- we must, we have no choice but to move away from that petroleum-based energy system, certainly for the highways, as well as for the grid.

(CROSSTALK)

CAVUTO: But why not do all this other stuff you want?

Most people would agree that, yes, explore solar, wind, all these other energy alternatives, but let's keep the petroleum thing going for the time being, because if we want to wean to some of these other technologies, have at it, but now it's not the time to do something that made us the world's largest oil producer, right?

GARAMENDI: Well, there's a whole series of issues that are in play here.

And key for us is that we are in a transition period of time that has been made more difficult by the shutdown and then the very rapid startup again. Will we power through this? Yes.

As I said at the outset, there are multiple things. There's the price gouging. There's a way to study that. If it's happening, put a stop to it. If there's short supply, look at the Petroleum Reserve. We could open that up, and it should, in my view, be opened up.

But most of all, we need to understand that we have to address climate change, and the transition to electrical systems must be now. We can't wait to start that.

That's why the infrastructure bill is so critically important and also why the Build Back Better bill, which hopefully will pass next week, is important, because the job training, the apprenticeship programs, the education that's necessary for the people that need to build these new systems, and, frankly, to transition from the older systems.

(CROSSTALK)

CAVUTO: Well, while we're transitioning. We're paying through the nose here. Let's hope that is short-lived.

Congressman, very good seeing you.

Fair and balanced, South Carolina Republican Congresswoman Nancy Mace kind enough to join us.

Congresswoman, this notion that there might be gouging going on, and that is part of what we're seeing, do you agree with that?

REP. NANCY MACE (R-SC): It's hard to say, Neil, what is actually happening and whether it's gouging or supply chain issues.

We know that we have massive supply chain issues. In fact, I had a friend call me yesterday from a very well-known coffee shop where the coffee ran out, right? What we're seeing is deeply troublesome right now in the economy.

CAVUTO: If the coffee ran out at my shop, Congresswoman, that would be an act of war. But that's a second issue.

MACE: It's crazy.

(LAUGHTER)

CAVUTO: I'm curious what you make of what's going on here, these 11 Democratic senators who wrote a letter to the president that he should tap the reserve. What did you make of that?

MACE: Well, obviously, I think that's the wrong move right now. We're seeing skyrocketing inflation. We're seeing more spending than we have ever seen in our nation's at least recent history.

We're not making healthy decisions for a healthy economy, for healthy jobs in this country right now. And it's the kind of spending we're talking about, whether we're talking about infrastructure, which doesn't do much for roads and bridges, or that it's Build Back Better plan, or this letter that the...

CAVUTO: So, you wouldn't tap the reserve, Congresswoman, right? You don't want to do that.

MACE: No. No, sir.

CAVUTO: What would you do to alleviate that right now? Because that's the pain at the pump that everyone is seeing, as these prices go up, up and up.

MACE: Right.

Well, I would like to see more movement on the supply chain. What are we actually doing either regulation-wise or policy, legislative-wise to reduce some of the pressure we're seeing in the supply chain to help our economy grow?

That's really -- when I look at Congress -- and, in fact, I had -- I was at a roundtable with Republicans on transportation infrastructure last week, and we're really not doing anything at all to help alleviate some of these pain points that we're seeing throughout the economy. And I think that's a good -- a better place to start.

CAVUTO: But isn't the infrastructure bill -- I know you were -- you did not vote for that, but about a dozen of your Republican colleagues in the House did, because many of them have argued that it does at least partly address that.

You were not and are not convinced of that?

MACE: No, I'm not.

I mean, with 42 new taxes, with less than 10 percent -- I believe the final number was about $40 billion out of $1.2 trillion that was actually going to roads and bridges. I believe we could have done a lot more infrastructure-wise with less and had it paid for.

But that's not what happened.

CAVUTO: But then what do you think, Congresswoman, of those who did vote for it?

I talked to New York -- your New York colleague Republican Congresswoman Malliotakis, who did vote for it, and she did address the pressure and the wrath she's gotten, oddly enough, from fellow Republicans, including those in leadership, for doing so.

I want you to hear this and maybe react to the congresswoman.

(BEGIN VIDEO CLIP)

CAVUTO: Are you surprised the grief and your Republican colleagues have been taking from some in the party that you just helped Nancy Pelosi with this? What do you say to that?

REP. NICOLE MALLIOTAKIS (R-NY): You know, this is a bill that started off in the Senate with Republicans and Democrats who drafted it. And it is good for New York City. It is good for the community I represent.

I think the winners here are the people in this country and also those who are trying to push back against AOC and the socialist Squad.

(END VIDEO CLIP)

CAVUTO: What do you think of the grief she and those others are getting for voting for this?

MACE: Well, I guess I would say get in line, Neil.

I get a lot of grief from the far fringes of both sides by protecting the Constitution and voting. I believe in representing the district that I have. I represent a swing district. And, sometimes, even myself, I go against my own party when I believe it's the right thing to do.

I do believe that the vote on infrastructure has always been coupled with Build Back Better, another reason that I voted against the legislation. I do believe we could have done more with less on that legislation.

CAVUTO: OK.

MACE: And that's why elections really matter, right? The voters get to decide who represents them and to be their voice.

CAVUTO: You know, Congresswoman, while I have, you have heard the dust-up of this video by Congressman Paul Gosar of Arizona.

Obviously, it depicted violence against the president of the United States, Alexandria Ocasio-Cortez. He has since taken it down. But the White House has since made a statement about, let's say, his going too far. This is from the White House.

(BEGIN VIDEO CLIP)

JEAN-PIERRE: There is no place for that -- for any type of violence or that type of language in the political system. And it should not be happening. And we should be condemning it.

(END VIDEO CLIP)

CAVUTO: What do you think of what he did?

MACE: I haven't seen it. I did see it trend on Twitter. And I was trying to understand what was going on.

But I will tell you, as someone who's been a victim of political acts -- my house was spray-painted this summer, my car was keyed last year -- this is the time that we need to be lowering the temperature in American politics. And that goes for both Republicans and Democrats, because when we say and do things, words matter. They have consequences.

And it's one of the reasons that I feel like I have to carry a gun when I'm home in South Carolina to protect myself and my family. And so those kinds of things are not OK.

CAVUTO: Got it.

Congresswoman, thank you for taking the time.

By the way, we did reach out to Congressman Gosar's office. We have not heard back, but hope springs eternal.

All right, in the meantime here, you heard about the great big spending bill that is now after the infrastructure-only bill. A lot of folks, though, are waiting for an official stamp of approval or a stamp of something, whether the math adds up, from the Congressional Budget Office.

And Aishah Hasnie will be examining that -- Aishah.

AISHAH HASNIE, FOX NEWS CORRESPONDENT: Hey, Neil.

Well, Nancy Pelosi and, quite frankly, even the president want to see a vote on this big, massive tax-and-spending bill by the 15th. That's next week. But I'm going to tell you what the Congressional Budget Office thinks about those plans coming up next.

(COMMERCIAL BREAK)

CAVUTO: You ever heard of the Good Housekeeping Seal of Approval? Good Housekeeping liked whatever you were doing or what some new food product or company, you were set.

Well in Washington, the equivalent of Good Housekeeping Seal of Approval is the Congressional Budget Office. It adds and subtracts, tallies all the numbers and tells you whether the price tag on a given program, programs under this legislation, whatever you call it, make sense

Never mind the fact that the numbers constantly change and the CBO's record isn't exactly stellar. Be that way, it's the only kind of game in town on all of this.

Aishah Hasnie following that right now and what maybe all of this could mean for this big old bill they're still cobbling together -- Aishah.

HASNIE: That's right. Hey there, Neil.

You know what? Everyone's been talking about Joe Manchin. Well, CBO might have all the power right now. It's the Congressional Budget Office. Look, House Speaker Nancy Pelosi is in Europe right now talking about climate change and the Build Back Better plan.

And she thinks, she's hoping that they're going to be able to vote on this when everyone comes back next week, the 15th. But don't hold your breath. As you know, House moderates right now are holding this bill hostage until they get that CBO score.

That score will likely reveal some unfavorable numbers here, including some questionable pay-fors, untenable tax credits, and a higher price tag than what the White House is billing. The Congressional Budget Office, though, revealing today the analysis of this bill is -- quote -- "complicated" and that some parts of the report will be released this week.

Others parts, though, will -- quote -- "take longer." That's not good news. Squad member Ilhan Omar reacting to this on Twitter today. She writes: "Translation: Build Back Better act is not going to happen next week. And everyone should have seen that coming when we decoupled the bills."

The White House, though, says the president is a little more optimistic.

(BEGIN VIDEO CLIP)

JEAN-PIERRE: We talked about this rule that was voted on, on -- for last Friday, for November 15, to make sure that the Build Back Better Act is voted on in the House that week. And so he's very optimistic.

(END VIDEO CLIP)

HASNIE: OK, so timing aside, progressives are really worried about what leverage they have left now to keep their programs in this bill, after the White House -- or -- excuse me -- the House here passed the bipartisan infrastructure bill last week.

So the Build Back Better plan has yet to be scrubbed and tested by the Byrd Rule before the Senate ever sees it. We know immigration is going to get chopped, likely going to get chopped, as the Senate parliamentarian already struck that from the reconciliation process.

Also, Senators Joe Manchin, Kyrsten Sinema, they're going to take issue on everything from paid leave to corporate tax provisions. Some other key elements that are being trimmed back might include climate change and lowering prescription drug costs.

Now, AOC put out a letter that reads this, really talking about this: "The president and House leadership has promised that Build Back Better will still pass. We hope they're right. But how much of the bill survives now that we have been -- that we have given away so much leverage is the question."

Also, Congresswoman Ayanna Pressley echoing that at her town hall last night. So everyone's really feeling that right now -- Neil.

CAVUTO: Aishah, thank you very much.

HASNIE: You bet.

CAVUTO: Aishah Hasnie on Capitol Hill.

So, where does this stand right now, with so many moderate Democrats still insisting, before we see that CBO score, nothing's going to happen? We have to see the CBO score.

So, obviously, this delays things a bit, if it pans out that way.

Francesca Chambers joins us right now, the White House correspondent for McClatchy.

Francesca, great having you back.

How big an impediment is all of this? Because, if you start thinking about it, it pushes things back, we get close to the debt ceiling time, the government possibly shutting lights off, all of that drill. Where are we?

FRANCESCA CHAMBERS, MCCLATCHY D.C.: Well, and that deadline, as you point out, Neil, is December 3.

So, Democrats absolutely would like to see the second part of the president's agenda passed before that, and they are aiming for next week. The Congress is currently out of session right now. So it's not something that they can do immediately.

So they're aiming for that week, next week, for that to happen. And the White House says today that they're still confident that there will be a vote. But as your colleague was pointing out, Neil, there are still key issues.

In the House version, they're looking to lift the cap on the state and local tax deduction. And that is something that's not likely to survive in the United States Senate. And so, after that happens, they will have to go back to the House again if those sorts of items are stripped from the bill.

CAVUTO: I just get this sneaking suspicion, Francesca, this goes into next year.

CHAMBERS: And that's something that Democrats have raised concerns about, Neil, because, if you recall going back to 2009, how long it took for Democrats to get through the Affordable Care Act, there were concerns that the president's biggest legislative achievement took too long to get to consumers, for them to feel the impacts of some of the things that former President Obama was doing.

And there's concern heading into the 2022 midterms, Neil, that consumers won't feel the impact, voters won't feel the impact that Democrats intend for them to in time for those elections.

CAVUTO: Got it. Francesca, great seeing you again.

Francesca Chambers follows the White House for McClatchy, much, much more.

All right, you probably heard about the inflation thing. You're tired of hearing about the gas thing, tired of hearing about oil, tired of hearing about everything that is zooming up. And now you're tired of hearing turkey prices are going through the roof as well. And you might want to switch to something cheaper like chicken. And now you find out that chicken is more expensive than the turkey that's going up.

And you're saying this whole inflation thing is for the birds -- after this.

(COMMERCIAL BREAK)

CAVUTO: All right, I didn't know I was starting something, out of the house and working out, getting ready post-pandemic.

I'm not alone. You're not imagining it. More people are heading out to the gym. We have got the Planet Fitness CEO to explain why -- after this.

(COMMERCIAL BREAK)

CAVUTO: They are calling it meatflation. Actually, they're not. We are.

And even afterwards, we said, that's really dumb. It's meatflation. Doesn't have a way to roll off the tongue. The fact is virtually any kind of meat you try to get your hands on these days has gone up double digits. And it's really complicated the search for Christmas and Thanksgiving turkey, Thanksgiving more immediate because there aren't that many of them around.

The prices have gone up here. You hear the fuss over small turkeys and all this. And then a lot of people say, well, where else can I wander off to? I'm close to tofu or whatever. You're going to be paying a lot more.

So what are the implications of all of this ahead of the holidays, when the whole list of Thanksgiving staples has now gone through the roof?

Pity poor Mike Gunzelman, the Internet radio sensation. We have Kat Timpf here, "Sincerely Kat," host on FOX Nation, so much more.

Guys, it sounds like if you have not bought your turkey yet, it might already be too late.

Gunz, what do you think of that?

MIKE GUNZELMAN, FOX NEWS HEADLINES ENTERTAINMENT REPORTER: Well, I'm just very -- it's very unfortunate that this is happening to the turkey and the meat. I wish this was happening to like the beets or like cranberries, things nobody really wants or likes.

(LAUGHTER)

GUNZELMAN: You know what I mean?

CAVUTO: Yes.

GUNZELMAN: But, Neil, you're exactly right.

So we just wrapped up week nine of the NFL season. So that means for the last nine Sundays in a row, I have gone out to local restaurants and bars and ordered chicken wings, because it's football and wings. That's what you do.

CAVUTO: Sure.

GUNZELMAN: And every single week, they're more expensive. And it's becoming frustrating, because, between the rise in gas and Uber prices and now food, now we're spending upwards of $100, where before the pandemic it was maybe $25.

So I think people are definitely becoming frustrated. And now it's -- it seems like the party's over. We have all been sitting at home kind of saving money, perhaps getting free checks or whatnot, stimulus checks. Now people are realizing that the money is going out a lot quicker than it's coming in. And it is going to be frustrating because you're messing with food.

Once you mess with people's food, they get angry.

CAVUTO: I hear you. But you are whining a lot. I do find that.

(LAUGHTER)

CAVUTO: Kat, what do you think of he's saying here, that, all of a sudden, when you really talk about food as the thing that's in -- that's seeing these big increases, and you're talking about people's Thanksgiving meal, that's a problem. So how does this affect you?

KATHERINE TIMPF, FOX NEWS CONTRIBUTOR: Right. It absolutely destroys several of the narratives out of the administration, being that it was treadmill delays and that it was like an upper-class problem, because it's also bacon, beef, things like that that are all higher.

And it's because, of course, everything's more expensive. There's the transportation costs expensive. There's labor shortages.

CAVUTO: Has it changed your behavior? You and your husband, you're looking around, like, what are you going to do? How do you -- if turkey is too pricey, where do you go?

GUNZELMAN: I mean, it's changed my attitude, everything -- like Mr. Gunz said -- I believe he prefers to be called Mr. Gunz.

CAVUTO: Yes. Yes.

(CROSSTALK)

CAVUTO: His people tell your people how to refer to him.

TIMPF: Every -- it's not just -- it's also the Ubers are more expensive. The taxi -- and then there's no taxis anywhere in New York.

And when you get in those -- you have to take an Uber. It's more expensive. Everything costs more. And the administration constantly is saying, well, it's just greed. It's greed that is causing this.

That kind of makes no sense. I don't know anyone who is like, I'm really -- I'm really greedy. I'm going to get into as a career meat. I don't think that's a thing. So, after a while...

(LAUGHTER)

CAVUTO: But it doesn't go away, right?

I mean, Gunz, the way they're looking at it now, the administration did seem to acknowledge the breadth of the problem. They're going to use and open this toolbox to address it. Are you so concerned now that your Thanksgiving -- that you have to make adjustments yourself? Are you going to hit up people, friends, maybe for a meal?

Where are you on...

GUNZELMAN: Well, I mean, that's just every weekend when I need help...

(CROSSTALK)

(LAUGHTER)

GUNZELMAN: You know what I mean? That's just my life.

But, Neil, I think you're touching on something here, in the fact that a year ago at this time, people were just willing to do anything. They were willing to sit out in the cold and huddle around those heat lamps, go to restaurants, because they needed to just get out of the house and the appointment.

CAVUTO: Right.

GUNZELMAN: That's not the case anymore, because we have been able to live now the last couple months.

So I really think that this is going to have an effect on restaurants and people going out and spending money, because I think they just stay home or just hang out with friends inside. There's -- the incentive to go out might not be there as much.

Now, as far as turkeys, I still think people do pay for the turkey for Thanksgiving, but maybe the Christmas ham might be cut back.

CAVUTO: It's still not a very expensive meat, even with the run-up and all. People got to keep that in perspective, right?

TIMPF: Right.

I don't think it's going to be as much that for the average person the cost of turkey is going to make them not be able to have a home anymore. I think it's got a lot to do with the fact that everything is being more expensive -- is more expensive, and people feel like they're being gaslit by an administration that is saying, no, it's not.

No, it's not. It just is an upper-class problem, or, oh, no, it's not, it's just greed. When there's nothing that's happening to change, and it keeps actually going up, and all the experts are saying this could last well into next year. After a while, I think it's just going to change people's attitudes by saying, hey, look, I'm seeing this and it's not matching with what you're telling me.

CAVUTO: Yes. And a lot of people still don't know their Thanksgiving plans. Did you know that?

So I guess they're going to wing it.

(LAUGHTER)

TIMPF: There you go. There you go.

CAVUTO: I guess they're going to wing it.

GUNZELMAN: Well, Neil, if you have an extra seat at your table, give me a call, my man.

(LAUGHTER)

GUNZELMAN: Thanksgiving dinner, I'm a great guest. I'm a great houseguest.

CAVUTO: Oh, boy, oh, boy. Kat, help me with this one. All right.

TIMPF: He will bring a 30-pack.

CAVUTO: Yes. I bet he would. I bet he would.

(LAUGHTER)

CAVUTO: I will keep it in mind. I will keep it in mind.

Guys, thank you very, very, very much.

Well, if you do have a Thanksgiving meal to look forward to, you got to work it off. And, apparently, a lot of people are doing that coming out of the pandemic. You know, a lot of people gained a couple of pounds, maybe 50 pounds.

Anyway, I have already been getting ready for this just, because that's what I do, America. And I'm not alone.

Planet Fitness' CEO is here to tell you right now a nation is eager to get out and working out.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

CAVUTO: Now, I'm going the pretty much breakneck pace have about one mile per hour.

UNIDENTIFIED FEMALE: Yes.

CAVUTO: So, at this rate...

UNIDENTIFIED FEMALE: Yes.

CAVUTO: Keep in mind my 10-year plan.

UNIDENTIFIED FEMALE: That's -- yes.

CAVUTO: Will I meet my 10-year plan?

UNIDENTIFIED FEMALE: Well, even at this rate, I think you might want to pick it up a little bit. I mean, even if you have got your plan's -- your high goals of 10 years...

(CROSSTALK)

CAVUTO: I'm sorry. I have a backup plan. There's a 12-year plan.

UNIDENTIFIED FEMALE: A 12-year?

UNIDENTIFIED FEMALE: A 12-year, I could do.

(END VIDEO CLIP)

CAVUTO: You know, I know we have been celebrating our 25th anniversary here at FOX. So that was 10 years ago. And I still think I look pretty cut.

Anyway, not really.

But, apparently, this whole push for fitness, it was a little bit dicey a decade ago. But, apparently, the whole world is finally catching up with me here, because maybe it was the pandemic. A lot of people gained one or two pounds and they're trying to work it off. They're out of the homes.

And, right now, doesn't my guest -- next guest know it? Chris Rondeau is the guy in charge of Planet Fitness. And they're seeing the big boom, and a lot of folks just want to get back and get in shape.

Chris, very good to have you again.

How are things?

CHRIS RONDEAU, CEO, PLANET FITNESS: Thank you. Thank you.

Really great. I couldn't be more happy. We had a great third quarter, best sequential net member growth in third quarter history. We're already back at 15 million members, which is 97 percent of our height right before the close-down back in March of 2020, so all great trends.

We're even seeing from rejoins from members that have lapsed come back.

CAVUTO: What's driving it? What's driving it, though, Chris? I mean, obviously, people coming out of the pandemic. That, I get, but it's got to be something bigger than that. What is it?

RONDEAU: Yes, I believe -- and all our studies have backed this up -- the weight gained from COVID.

Leading into COVID, 70 percent of adults were overweight or obese before COVID. A recent study came out that 40 percent of adults have gained an average of 29 pounds.

CAVUTO: Wow.

RONDEAU: So, not the two or three pounds you mentioned a minute ago, an average of 29 pounds on top of that.

So you have that going. You have, unfortunately, 22 percent of the gyms in the country have closed permanently because of COVID. That's unfortunate. We didn't lose one single store. So there's less options to shop. And we're...

CAVUTO: How -- yes, how did you survive that?

Because they were making life awfully difficult for you and your stores and all the other gyms, with the special codes, the distance provisions, the masks and everything else and the limited capacity. How's that now?

RONDEAU: Yes, right now, the thing with us is, it's a testament to the brand and the model that we have. It's a very strong business model, very strong franchisees in our systems, sophisticated group of people that are running these stores.

They're big facilities. They're 20,000 square feet. So, social distancing was not an issue for us. We put some great cleaning protocols in place to get people a peace of mind there. And we have seen nothing but positive results. And, today, we have 100 percent of our stores open around the globe. Almost all 2, 200 of our stores are open now for business.

And the business is great. I have seen some great trends. Gen Z's are joining at a pace we have never seen. And think about this. Gen Z's are outpacing the other joins. And half of them are still too young to even join.

CAVUTO: Is that right?

RONDEAU: So, I think -- yes, and I think you have got -- I think a lot of people are focusing on their health.

We have all heard for decades right, Neil, that take better care of yourself, you should exercise. Unfortunately, COVID kind of brought this to light.

CAVUTO: It did.

RONDEAU: And, unfortunately, mental health, I mean, that's -- you see a lot of studies coming out now.

And fitness is more than just about your waistline, right? It's about all the other benefits, sleep better, anxiety, depression. It helps with all those, you know? And I think people are realizing that for the first time. And I think that's what's driving people to finally give fitness a try here.

CAVUTO: It's interesting, because this happens in an environment where, what, this past week we learned that Peloton had to say, all right, all these projections are off, even though their overall revenues are fine and all.

They were really hit hard by this pandemic, people leaving, because they had gotten those pricey bikes, treadmills and the rest, to get ready and in shape or try to stay in shape during the pandemic. And they're hurting. So it's been a shift away from home gyms to, well, kind of your gyms, right?

RONDEAU: Yes.

I mean, I think home fitness is not new, right?

CAVUTO: Right.

RONDEAU: I mean, you go back to Richard Simmons or Jane Fonda. Then you got Billy, Bo, and Tyra Banks. And you got P90X. And at the end of the day, it'll be there.

And it's for a very -- you have got to be very dedicated to do this at home. In theory, it might make sense. But you got the kids running around. You got the UPS guys at the door.

I mean, it's -- you get to the gym, you're around others. You have got commercial-grade equipment, plenty of varieties. You don't get bored. And for Planet, at 10 bucks a month, anybody can afford it, give it a try.

CAVUTO: Yes.

RONDEAU: So the affordability of Planet is second to none.

CAVUTO: There's got to be a lot of pressure on you as the CEO, though, right? Like, you can't turn into like an obese pig. I mean, you got to keep looking, like, in good shape, right? That's tough, I mean, right? What...

(LAUGHTER)

CAVUTO: Sort of like me.

RONDEAU: Well, I'll tell you right now, back to why you exercise, I think now, at my age, running this company, it's more about the mental health side of it, sleeping better and helping with anxiety and stress relief, right?

CAVUTO: Absolutely.

RONDEAU: And it's almost like the physical shapes is the by -- physical shape is the byproduct of that, right? And that takes time, right? That takes months and dedication, and that will come.

CAVUTO: You're right.

RONDEAU: But the first day you work out, you walk out of the gym, you always walk out feeling happier that you went. It might be hard to get there, but you walk out feeling a heck of a lot better than the day you walked in.

CAVUTO: Absolutely.

And you got to make it every minute of every day. So that's why I run through the buffets now, Chris.

(LAUGHTER)

CAVUTO: So you're getting exercise every moment.

Chris Rondeau, the Planet Fitness CEO, he practices what he preaches .

So, we're all getting in shape, right? OK, maybe.

All right, in the meantime, in the meantime, have you seen some of these latest images we're getting out of China? It's not as if they hid them from us, the models of ships that are duplicates of our own. What the heck are they doing? What are they up to?

After this?

(COMMERCIAL BREAK)

CAVUTO: China building replicas of U.S. Navy ships, as tensions continue to escalate between our countries and everyone wondering what China's up.

Greg Palkot in London with more.

Greg, what's going on here?

GREG PALKOT, FOX NEWS CORRESPONDENT: Hey, Neil.

Yes, we have been getting a lot of reaction from these images apparently showing U.S. Navy ships, replicas of them built by the Chinese used for target practice. One, according to the experts, showed a full-size mock up of a U.S. aircraft carrier.

Now, a former top U.S. Navy visual we spoke with said this should be a wake up call for those tracking the Chinese military. Another is said to show a version of one of our guided missile destroyers.

John Kirby -- he's a spokesman at the Pentagon -- said this is the sort of intimidation that we have come to expect from Beijing. And a third depicting a pretend U.S. Navy vessel on rails, presumably so Chinese missiles could try and hit a moving target. The Chinese government again today had no comment. Apparently, their pictures speak for themselves.

This, Neil, as China ramps up its military. They're testing a range of anti-ship missiles. And now, today, we have seen new satellite photos of the Chinese building their own aircraft carrier. This is their third, but it's the first that could actually match the specs of some of ours.

It's seen under construction at a shipyard in Shanghai. They have already got the biggest navy in the world. This latest carrier, really the cornerstone of any naval power, is said to be ready next February.

Neil, I don't have to tell you all this comes as tensions between the United States and China couldn't be higher and in the coming weeks a virtual face-off between President Biden and President Xi. That's a very full plate -- back to you.

CAVUTO: To put it mildly, my friend.

Greg Palkot, thank you very, very much.

PALKOT: Thank you.

CAVUTO: Well, we do know that, for the upper income, taxes, if this plan goes into effect that Democrats are still cobbling together, will have high taxes.

Is the rate on the federal level alone of, about 50 percent, enough to indicate they're paying their fair share? How about if I told you, with everything, it gets to be 60 percent or even better? Are we getting close?

After this.

(COMMERCIAL BREAK)

CAVUTO: It's all about the rich paying their fair share. Well, what does an average top rate of 57.4 percent sound for a share? Is that fair?

When I raised the subject with Pete Buttigieg, the transportation secretary, on my weekend show, he said the overall top rate of about 50 percent is getting there, but we're not quite there.

Congressman Kevin Brady of Texas, House Ways and Means Committee member, on what he makes of that.

Congressman, good to see you.

REP. KEVIN BRADY (R-TX): Good to see you, Neil.

CAVUTO: A top rate, according to the Tax Foundation, of 57.4 percent, . Depending on the state, you can go easily get over 60 percent. I know it's the very, very wealthy who will pay that top rate. But it is now in fair share category, according to Pete Buttigieg.

What do you think?

BRADY: Yes, I think that's not the case.

I think the very definition of socialism is when the government has a greater claim over your earnings than you do. And, unfortunately, under these tax rates, that's exactly what happens. Many of these taxes land on owners of small businesses or what we call pass-through businesses. So, invariably, that goes on to the job creators in America.

As you know, the U.S. has one of the most progressive tax code among the developed world, have had for quite some time. In fact, the rich are paying a bigger share after the Republican tax cuts than they did before. So I think bottom line is, this is tax policy by villain.

They just like to punish certain companies and certain individuals they think are successful to waste. By the way, they're giving those same wealthy a tax break in their state and local tax deductions and major checks.

CAVUTO: Yes, they're revisiting that, Congressman. We're pressed for time. I apologize for that, sir.

BRADY: Yes. That's OK.

CAVUTO: But this idea of bringing or lifting the state and local tax deduction to maybe more like $80,000, or the $10,000 cap, they're pushing it in the House. They're very close to that. What do you think?

BRADY: Yes, the bulk of that will go to millionaire households. I think it's a giveaway to them.

And the way they're paying for it basically is stopping generic drugs for seniors. It's a terrible trade-off.

CAVUTO: So where are we headed on this? Because I can't imagine, if they do approve something like this in the House, that the Senate will accept it.

BRADY: Yes.

CAVUTO: But it's now looking like the whole package could be pushed into next year. What do you think?

BRADY: I think it could. They're not going to have the cost estimates anytime soon.

I predict they will fall short, especially with the IRS and with the corporate rate, and possibly with the drug pricing as well. And so they're going to have to either jettison something or put back in the IRS bank surveillance, which is so unpopular.

CAVUTO: Real quickly, not a single Republican will vote for this? That seems to be the sentiment.

BRADY: Yes, why would you raise taxes on job creators as we're trying to find our way out of a pandemic?

These tax hikes, by the way, will offset any economic growth from the infrastructure bill. America is actually a net economic loser when you combine the two.

CAVUTO: All right, Kevin Brady, we will watch closely, the House Ways and Means Committee ranking member.

We got the tax cuts we did because he was working on it before anybody else was. And it looks like, for now, they're still holding. We shall see.

Here comes "The Five."

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