Americans for Prosperity, the most prominent arm of the Koch brothers' organization, put Republican lawmakers on notice Thursday, setting out a conservative agenda for Congress. AFP leaders say it will be pushed by the group's grass-roots supporters in 34 states. The agenda covers three areas: taxes, including repeal of the estate or death tax; energy, headlined by a call to build the Keystone XL pipeline; and health care, which includes repealing the Affordable Care Act. Phillips noted that Washington has debated all of the issues for years.

Libertarians say it's like watching dear friends in an ugly divorce, as the billionaire Koch brothers try to take control of the highly regarded Cato Institute. The head of Cato says the Kochs are out to politicize the think tank.