tv Erin Burnett Out Front CNN September 11, 2012 2:00am-3:00am EDT
those are shame glasses. they're shame filled. and they're for private time. they're what you call your indoor glasses. let me tell you something, ryan see crest would not be caught with those glasses on. >> so on behalf of everyone but ryan seacrest. with frames as big as our dream, wolf, welcome, enjoy the view. next, mitt romney says he will use loop hopes to cut tax rates for everyone and still cut the deficit. and tonight, teachers in the nation's third biggest district are on strike and were navys.e.a.l.s on a specific drug the night they killed osama bin laden? let's go "outfront." good evening, everyone. i'm erin burnett. is mitt romney raising your
taxes? well, mitt romney and paul ryan say they're going to cut individual income tax rates for everyone without increasing the deficit. so in order, the campaign has said they will close tax loopholes. in a moment, we're going to show you how many of those there are, but there are a few problems with this logic, like which loophole and for which taxpayers. >> an example of a loophole you will close. >> people at the high-end are going to have fewer deductions and exceptions. >> don't voters have a right to know? >> so, mitt romney and i based on our experience is to show the framework, the outlines and then to work with congress to do this. >> their plan is to work with congress after the election to determine which loopholes to close. now, chris christie famously campaigned on that in new jersey. he won and went in and cut, but
this is politically dicey since voters like to know. a new poll found 51% of voters think president obama would better handle their tacks. the obama campaign has been out aggressively saying mitt's plan will raise taxes on the middle class. now, they're referring to an august study from the bipartisan tax policy center which concluded that eliminating popular deductions for the wealthiest americans won't generate enough money to make up for their tax cut, so as a result, middle class families will get an increase, in order to keep revenue the same. the truth is, is that the math is really hard to do without knowing more of mitt's plans. when you see these numbers, you'll say there has to be a way. in 2011, the united states took in about $1.1 trillion in income taxes. individual. but look at the bottom number below it.
i mean, this makes my jaws drop. total tax break, credits, exclusions, your mortgage interest duction, state and local taxes. more money than we took in. okay, whatever you think about specific deduction, this screen is everything you need to know about how our tax system is really broken. so ending the state and local deduction alone would be $862.2 billion. the mortgage interest deduction, $214.6 billion. now, those are exactly the deductions mitt romney said he'd cut at a close doored fund-raiser in april. a reporter at the event wrote quote mitt romney said i'm probably going to eliminate for high income people, the second home mortgage deduction, romney said, adding he would also eliminate for state and property taxes. he made it clear it's for higher income people he wants to get rid of some of these deductions and mitt romney's defenders -- they can make the math work, so
can that they? one is doug holtz eakin, also joined by tim honor and john avalon. let me start with you and just go through the math with you and then bring in tim and john. go through as to why you think mitt romney can make this work. even though the tax policy center and others say he can't. >> the tax policy center has to be wrong because we know from the bowles simpson commission, he can have a structure like romney's proposing and raise revenue. the example, preserve some of the savings investment incentives and look at the revenue losses that would prevail. about 145 billion. then you get rid of exceptions. there's an enormous amount of itemized deductions out there. get rid of those, raise $200 billion, so you're in the black
on this. and then there's the real goal of having the economy grow better. that's the main reason of doing this. if we got the growth, we'd get another 25 billion from americans. there is no question that you can do the kind of reform that the governor's proposinging without raising taxes on middle income americans. in fact, you could give them a bigger tax cut. >> a couple of things some are going to say, what kind of growth are you assuming? what is the growth you're assuming? >> a bump to 3%. we just need to grow, we're growing at 1.5% right now, so it doesn't take much to grow better. the second point is you know, can this really get done. it's important to recognize that next february, the u.s. income tax will be 100 years old and in those 100 years, we have less than one handful of genuine comprehensive reform, so as a
going in proposition, tax reform is hard. it's not that governor romney's tax reform is hard. tax reform is hard. the only way to get it is to run on it and tell the voters you're going to do it. >> when you say and this is the crucial thing, when you say you're going to lose 145 billion for the tax cut and just get rid of loopholes for the wealthiest americans, which you've defined is over 100,000 for singles, right? when you get that 200 billion, what are you closing? what are you eliminating for the wealthiest americans? >> itemized deductions, soup to nuts. and so the lesson there is you don't have to eliminate. you can cap some. pick ones you want to preserve, but the whole notion of tax reform is to say boy, we have to stop micro managing people's lives. let's have a broad base that doesn't pick, then lower the rates. >> so, tim, let me give you a
chance to respond. what do you think? >> well, look, a couple of things. first of all, what the tax policy center said is that the math from some of these studies that doug is referring to doesn't include all of the romney tax cuts, so you're not including things like the estate tax. if doug's position is also the romney campaign's position, he's just laid out a clear choice. what he said is getting rid of things like the mortgage interest deduction or tax deductions for health care benefits, you are going to raise taxes on middle income earners. >> he's saying he's only getting rid of them for the wealthiest americans. >> right. said no tax increases for people making under $250,000 a year. >> but how are they going to get -- i'm not, get to keep the deduction they have and he's giving them a 20% tax cut, how is that a tax increase? >> what he's saying is that the
mortgage tax deduction and othe deductions are going to go up. >> for high income americans. >> which what that means is the average middle class american, their taxes are going to go up. that is the math. now, you can get rid of those if you want, but you're effectively paying for wealthy tack deductions. >> now, to tim's point, when you're saying over 100,000, you're not talking about families. families earning double. >> this is a calculation that is strictly focusing on the reported incomes and the irs data for those over $200,000 and as a result, doesn't say anything about eliminating those deductions for middle income americans. this is addressing the assertion that you cannot have a tax reform that lowers rates by 20%
and eliminates enough deductions that you will lose revenue. that's just not true. >> and let me bring you in here. separate from this conversation, say you were going to get rid of all the loopholes for wealthiest americans. how is that going to happen? >> some of these it's not going to be reasonable f. that's why the math doesn't work. >> and of course, that's the reality we've seen with this divide and dysfunctional congress, we can't get anything through. we've seen this before. 1986, reagan worked with democratic coness. and the only way you can lower rates, but you've got the close loopholes and that can help generate some revenue. part of the problem here is this is a political document. mitt romney wasn't initially campaigning on a 20% tax cut. he came up with a new plan. >> he felt pushed to get a new plan. >> absolutely. he's had also to be consistent, he said it had to be revenue neutral, so he's in a box. bottom line.
serious plan requires specifics. talking about specific loopholes is frankly necessary. you can't kick that can until after the election. >> thanks very much. we appreciate it. this is a conversation that is going to continue around this country for the next couple of months. next, new polls just out, plus, third party candidate gar johnson "outfront." who could he hurt more on election day? and later, a navy s.e.a.l. tells the story of the night his team killed osama bin laden, but did he reveal an unknown drug issue in the military and jesse jackson jr. returning to congress. his close friend gives a surprising answer. ♪ why not make lunch more than just lunch?
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republicans are howling in protest, questioning on numbers. the president did get a bounce out of his convention. first, straight up at the horse race. likely voters, those likely to vote in november, a t president with a six-point lead. coming out of the republican convention, we had a tie. going in, we had a statistical tie, so the president now ahead after several weeks of it being a dead heat and a tie. here's one error that jumps out at me if this one sticks and this one would be stunning if it sticks, but look at this. this is among men. democrat traditionally win among men. that's a tie with governor romney who puts up a dozen points. watch that number. you mentioned issues. what drive the poll. remember the focus at the democratic convention. what was it on? one of them was who's most in
touch with the middle class? the president now with a 20-point lead. that is whopping. when voters were asked which candidate is most in touch with the middle class, only a six-point edge heading into the convention. into ohio, remember during the convention, a lot of conservatives were saying the democrats were overplaying their hand and yet, coming out, which candidate best shares your values, the president with a seven-point lead. just before the republican con veng. the president wins on that one. and imagine a fam hi torn about the candidates, sitting around the table, who do we like on different issues. tie on the economy. romney can't win if he's tied on the economy. medicare, foreign policy. all big themes a t the democratic convention. and from time to time, we get complaints from people saying what about the third party candidate, so for the first time, we asked likely voters what if you had a chance between four? president obama, governor romney, gary johnson, the former governor of new mexico and the green party candidate, jill
stein. you see an impact. the president comes down one point, jill stein gets one point. romney comes down three points, gary johnson gets three points. when it's fair to say, when you give them an option, they might have a second choice in governor johnson. >> that's right. thank you very much. perfect guest right now. libertarian presidential nominee gary johnson is going to join me. he's on the ballot in 43 states. there are legal challenges taking place in three important ones. michigan, pennsylvania and oklahoma. now, gary johnson swings both ways. while republicans fear he could have an effect of michigan, pennsylvania and ohio, some democrats are worried he could hurt president obama in new mexico and colorado. in new mexico, recent polls show the president only leading by five points and among independents in the state, johnson gets 12% of the vote. >> great to be on with you. thank you.
>> so, some people saying look, you can come, make your point, but are you going to spoil the selection for one of the others? what do you say? you laugh. >> the notion that a wasted vote is somehow voting for somebody you believe in. look, for all those people that care about the fact that we con tinnily militarily intervene, let's stop the wars, the growing police state, let's balance the federal budget now, earlier in the segment, you were talking about taxes. i'm advocaing throwing out income tax, corporate tax, abolishing the irs and the fair tax. not a vat, because a vat ends up to be just another tax. i'm talking about one federal tax that is the fair tax. fairtax.org. >> quote, there's at least one politician at the republican convention this week whom the
party's undoubtedly wish would stay away. that would be gary johnson. you take three points, mitt romney goes down by three, you go up by three. it is mitt romney on a national level. >> actually, put this to the question in four different states and in two state, i take more votes away from obama. two states more away from romney, then just get back to the issue. who's speaking on behalf of most americans, which i would argue are fiscally responsibly. >> colorado was another state where you really get a vote and that, i mean this is -- >> and it is on the ballot in november to regulate marijuana like alcohol. i think it might be the tipping point to 50 states, 50-state dominos that will fall and bring up rational policy. >> and now, what about your view overall when you said fiscally conservative, i'm not just
talking about pot, your views on sake-sex marriage, you're for it, also support a woman's right to choose. do you think some are coming to you as a result of the highly publicized republican platform, which would deny abortion in all cases. is that moving the needle for all voters? >> i think the world vilifies republicans for their social stance. i don't think the majority of republicans fall this that category. i think there's a turn off there. i really do. having run for governor of new mexico, having served in a state that's 2-1 democrat, i think it speaks volumes in a state -- i really took some stands when it came to civil liberties. >> thank you so much. good to see you. next, how politicians are getting in the way of the 9/11 memorial at ground zero and
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now tomorrow marks the 11th anniversary of the september 11th attack, but today, most of the headlines focused on the physical recovery of new york city, so over the past 11 year, we've seen a slow but steady reconstruction of the world trade center that will when completed include four skyscrapers, a transportation center and at the base, the national museum and memorial. now, the eight acre memorial part of the site opened last year on the tenth anniversary and since then, more than 4 million people have visited it. the museum part was set to open tomorrow, but apparently, that's not happening. according to documents filed in july by the national 9/11 memorial, the museum will not open until quote 2013 or later.
okay, that's a huge delay and a bad thing. just 15 months ago, the foundation said they were well ahead of schedule to open the mu semiin time, so what happened? one word. bureaucracy. constant bickering between the port authority of new york and new jersey and the 9/11 foundation has brought construction to a halt and it's all about money. the current price tag of the memorial and museum is $700 million with another 60 million needed every year in operating costs and borrowing the last minute deal, which we're rooting for, the sides can't agree who's paying for it. you've got new york, new jersey, the port authority. lots of people fighting and nobody wanting to pay. so whatever you think of the price tag, we're way past the point of arguing about it. even if there is a last second deal, if our elected officials let it get to this point on paying, what chance is there they're going to be able to work on other issues like strikes? still ahead, nearly 30,000 teachers are on strike in chicago.
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we start the second half of our show with stories we care about where we focus on our own reporting from the front lines. cnn has obtained video of the deadly shooting at the sikh temple in wisconsin. the temple inside the car shows the officer exchanging gunfire. we learned today the officer was shot 15 times with 12 bullets hitting him in his bulletproof vest. minutes later, another officer
arrived, returning fire and bringing him down. moments later, the medical examiner says page shot himself in the head. the shooting killed seven and injured four others. an al-qaeda group is calling the killing of six muslim preachers a declaration of war. a patrol opened fire on muslims this weekend. the government says it's
investigating, but today, we spoke with a refugee we met. he told us that islamic extremists that have taken over northern mali has been raiding villages, taking food, money and supplies. he says his family and others are in desperate need of food. taxpayers, get ready to celebrate. you are on track to make money on aig. the u.s. government is close to shutting its stake in bailed out insurer, aig, which would bring american taxpayers' take to 23%. last week at the democratic convention -- but the map looks better and better because right now, if the government were to sell all of their stake, they've got to do it before they make money, but right now, aig is trading near $35 a share. as long as they sell above $28.73 a share, we all are making money.
u.s. taxpayers put about $182 billion into aig at the beginning. people thought they'd never get that back, but now, it most certainly appears they will. it has been 403 days since the u.s. lost its top credit rating. today, we got bad news. consumer credit fell in july. that's way off the $10 billion increase economists predicted. consumer credit had been a source of good news. i'm going to give you the other side of that. when there's less credit, it means there's less borrowing and maybe there's a silver lining. and now, our third story. we have breaking news right now on the chicago teachers strike. nearly 30,000 public schoolteachers have walked off the job. that meant 350,000 chicago students were locked out of school and on the street. now, we had planned to bring you an interview with the president of the chicago teacher's union, but she just canceled saying she's in the middle of negotiations.
todd, given what she said, is this an indication we're close to a deal? >> well, erin, it's a good sign because they have been at it for hours an there wasn't a huge gap leading up to today's discussions so, the fact they are still talking into the evening, just got off the phone with both parties and they say they are going until further notice and quote, nobody knows how long they're going, so they are in a room, talking and they are still talking. the fact she did cancel with you just moments ago is likely a very good sign they are productive at least and maybe coming to a solution to end this strike. >> and so, let me ask you about something else here. i know you had a chance to speak with the mayor, rahm emanuel. what did he have to say? i know he has been pretty angry about this whole situation. >> well, yeah, he's been the target of a lot of anger. i think that's absolutely sure to be sure. the teachers are in the street.
some have posters with rahm emanuel's face on him. they feel betrayed by him. they feel he has gone anti union and anti teacher's union specifically. he on the other hand, we talked to him and in a press conference, he said i don't care. if you're mad at me, you're mad at me, but this is the line i've drawn. he also criticized the teachers saying this was absolutely a choice by them. a strike of choice. there's a decent deal on the table. he urged them to keep negotiating while they ironed out these last details. take a listen to what he said today. >> this is not about me and anybody else. let's focus on what the education system is. about. it's about our children. their learning, their opportunity. >> now, late this evening, paul ryan came out and said that he agrees with rahm emanuel on this
and they're urging the president to weigh in. it will be interesting to see as the pressure mounts. teachers also want president obama to weigh in. we'll have to see which way the president goes on this. does he go with his former chief of staff or go with something else that will appease the teachers.
left the united states for the raid and the time he left from pakistan. always two at a time. military psychiatrist is "outfront" tonight. i think a lot of people were surprised when they heard this. does this surprise you? is this that the use seems to be so common place? >> ambien use is common place, but in short doses in shorts periods of time, it's often used in the civilian world and the military to have people be able to sleep on the long plane rides so when they get to where they're going, they are awake and refreshed and alert. the fact that apparently, he was still groggy after taking it, that is a surprise because he should have taken it earlier. it should have worn off and he should have been at full functioning. >> he was saying in fact in his book, both he and the other
s.e.a.l.s were taking it two at a time. you're not supposed to do that, according to the manufacturer. and he also said specifically on this case, the day he flew to pakistan, he tried to get through a gate and had to re-enter the code three times. >> well, it is used for people to get to sleep. it wears off fairly quickly, but it will make you sleepy. now, i don't know about the two at a time because it comes in five milligrams and ten, so i'm not sure how much he took, but it does sound like he was taking it to close to the time he needed to be able to function. now, i'll tell you, it's always a challenge and something the military wrestles with. how to get people to sleep across these time zones or when they get to a new place and have them be awake and refreshed when they get there. it's not easy. >> no, it's not, but it also raises the broader issue about prescription drug abuse among military personnel.
but there have been some other dramatically different stories that we have heard that seem to have involve some sort of sub sans abuse. how big of a problem is it in the military? >> well, prescription drug use is very controversial in the military. there's been a lot of discussion on whether people should be on antidepressants. personally, i think it's better to have somebody treated as they should be. on the other hand, all of these medications have risks, they have side effects, so it's really important to very k very carefully if you're going to use a medication in a war zone, you need to be absolutely sure that it's right one and that it doesn't have side effects that might get people into trouble. >> thank you very much. next, congressman jesse jackson jr. is back in washington, d.c. after under going treatment for bipolar depression. we haven't seen him in months,
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we're back with tonight's outer circle where we reach out to sources around the world and we begin in vienna, where the head of the international atomic energy agency is frustrated in talks with iran over nuclear weapons. the agency is demanding access to one of the country's military bases -- i asked what inspectors might find there. >> reporter: the nuclear chief today delivered a sharp rebuke to iran for failing to cooperate rate. speaking to ambassadors at the u.n.'s nuclear headquarters, the director general called on iran to grant u.n. inspectors immediate access to the military base near tehran. there are suspected to have been carried out earlier this month.
said the country had significantly increased its capacity to refine nuclear material and was building up stockpiles of enriched uranium. iran insists its activities are for peaceful purposes despite growing international concerns. >> now to hong kong, where protests have won their battle against controversial chinese education requirements they say amount to brainwashing. >> erin, i'm standing here at hong kong's government headquarters where for the past ten day, tens of thousands of protesters were here pushing back against a proposal for national education reform. critics have called it brainwashing because it glosses over key moments in china's history, perhaps most important, the massacre in 1989, when hundreds maybe thousands of people were killed at the habds of china's military.
this would have seen the subject -- primary and secondary schools by 2015, but over the weekend, the chief executive did a turn around and said it would no longer be mandatory. still, this is a victory for people power this weekend. >> all right. interesting development there. now, let's check in with jesse jackson jr. is back in washington after several week of treatment for bipolar depression and though he hadn't been seen since may, it took some time for many to understand where he was. his staff said jackson hoped to be back on capitol hill today, but no sign of him so far, but his long time friend visited him in treatment and has been in constant contact with him. i spoke to him earlier and asked him how jackson is doing. >> he is with his family and he is dealing with a very serious issue that's life threatening.
he got great care at mayo, but as anyone who's been in treatment like myself knows, the world just begins when you start treatment and you start your new life in recovery. so i encouraged him to take it slow. don't rush into things. obviously, it's a transition he's in right now and that's loaded with stress and of course, stress is one of the inducers of mental illness, so he has to be careful about the environment he's in right now. but i know he's surrounded by friends and family and that's something that's very good for recovery. >> it's hard for people the to recognize it and hard for people to understand how severe and physically painful it can be. i know you have experienced this, you still fight it. when you were talking there, it made me realize how much you have in common. your fathers are both lions.
you have incredible careers yourselves, but how much have you connected with him over that? the parallels appear a little uncanny. >> well, we were both elected the same year. we both sat next to one another for the 16 years i was in congress. and i have been through this journey and my role in life now is to share my experience, strength and hope with someone just starting their journey and jesse is starting his journey, but i believe he'll be successful because he's got his family as a priority. his friends and most importantly, his recovery as a top priority.
my role is to share my experience, strength and hope with someone just starting his journey. i still get to pursue my calls of menial health. jesse said he wants to pursue that as well. whether in congress or oust congress. i told him he'll have a platform and mantle to advocate for the issues he cares about. >> one question congressman. i know this is awkward to ask. the fund-raiser.
and for blagojevich in exchange for the senate seat to go to jackson. it was heating up before he sought treatment. is that what brought this to a head, the stress of that? >> as you know, erin, these are physical illnesses but brought on by the environment that we live in. and certainly living in a stressful environment and of course, jesse is in an added stressful environment because of these investigations. clearly he's under that same environment. but being predisposed to mental illness. that got triggered. right now he's dealing with the physical illness he's dealing with. certainly that illness has been compounded by the stress he's had to live under. part of his recovery will mean
trying to get away clear where he can live a less stressful life. now for an update on the controversial drilling off the coast of alaska. shell is suspending operations due to ice. miguel marquez has been there since the drilling began. what is the update miguel? >> the big update. after they had begun drilling. had to suspend drilling. they actually took the noble discovery, this rig they had anchored down by several cables in the sea floor and began drilling into the mud of the sea floor, they had to stop all of that because of an ice flow. 32 miles by 12 miles long the wind had changed direction there. it's begun to move toward the
noble discoverer. they had to disconnect it from its anchors. it's absolutely fine and safe at the moment. environmentalists will not be happy to hear about this. people in the area will not be happy to hear about this. they see this as a sign of the weakness of shell's plan that you cannot be in this remote difficult environment and expect conditions to be as you might need them to be in order to conduct this sort of drilling operation. shell said this is what we prepared for. everything is working according to plan and at this point there's no danger to life, limb, property, animals or anything else. all of that said, this is preparer to drilling and shell at this point has to wait for the arctic challenger. a whole other barge, clean-up barge to make its way from washington to be okayed by the coast guard to make its way from
washington into the area so they can begin real drilling below the 1500 foot mark which they're okay to do. erin. >> thanks, miguel. what happens when the most powerful country in the world faces a power change? we'll tell you. no matter what small business you are in, managing expenses seems to... get in the way. not anymore. ink, the small business card from chase introduces jot an on-the-go expense app made exclusively for ink customers. custom categorize your expenses anywhere. save time and get back to what you love. the latest innovation. only for ink customers. learn more at chase.com/ink
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china is weeks away from announcing a new government. china's vice president is literally missing in action. speculation is growing over the whereabouts of him. he's not just the vice president now. he's expected to be the next president of china. just today, he missed a meeting with the prime minister of denmark. now, chinese officials canceling appointments is not new but canceling them last minute is. where is the next president of china? there's some speculation he injured himself but gordon chang said those rumors seem improbable. it's anothig