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tv   Special Report With Bret Baier  FOX News  August 3, 2011 3:00pm-4:00pm PDT

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i recognize that. and the pinata. >> greg: that is it for "the five." he will keep talking. thank you for watching. see you tomorrow. >> bret: federal aviation employees furloughed working without pay. they're pointing fingers. president has other problems fighting for re-election. if democrats get their way and increase taxes on the rich, what would it mean? live from our studio in washington this is "special report." lawmakers weary from the fight over the debt ceiling are dragged in another scuffle. long distance. no the president is getting involved as well. >> reporter: 4,000 faa employees were furloughed and 70,000 construction workers on airport projects have been sent home without pay. house republicans have done their job but many democrats
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are unhappy. >> this is a lose-lose-lose situation. the american people's expectation is this will get resolved this week. >> earlier they had the shutdown of the faa that began july 22. >> come back to washington. leave your vacation for a couple of hours. come back. >> they told fox's neil cavuto -- the senate left town and failed to act. it's pretty much par for the course. >> they cannot collect the taxes, but could end up being more than $1 billion if the congress doesn't resolve it before returning in september. boehner said all that is needed to end the crisis is for the senate to pass house approve faa extension and the only reason some of the jobs were at stake is the senate
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democratic leaders chose to play politics rather than pass the house bill. senator hatch says they could do it without a roll call vote. >> they could do it with the unanimous concept request and take a small bill to put it over until september, pay everybody, keep people working but they can't take yes for an answer. >> the leading democrats accused reporters of buying the republican line. >> a certain anyyevty comes with a question. >> if someone puts a gun to your head and says give me your money. why won't you give them your money? >> you leave out context that there is a gun held to your head. that is not fair or right. >> when asked about the house passed bill, or the president could take action himself, lahood responded. >> the focus is getting congress to come back and fix this legislative ily. that's where we focus the time and energy. congress has done it in a
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short period of time. >> harry reid sent a letter to speaker boehner to ask them to put aside differences to pass a clean short-term extension to put those affected back to work. >> more with this on the panel. thank you. just because the debt debate is behind him for the time being it does not pine that other problems for president obama are in my way the i min nicheed. ed henry has the story. good evening. >> the president said even the threat of a default was a huge drag on the economy that is putting are re-election in major jeopardy. >> after calling himself a simple guy, the president ordered the cheeseburger well done with dijon mustard and pried onions as he treated advisors to a lunch celebrating the passage of debt deal.
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on the way out, some yelled out happy birthday. a day shy of his 50th. >> at the white house, the president digested economic numbers that continue to pile up. >> the american people have been continuing to worry about the underlying state of the economy. about jobs and the wages, about reduced hours. fewer customers. >> wednesday, adp reported private sector layoffs up 60%. a 16-month high. tuesday, consumer spending was falling with the biggest monthly decline in two years. weaker than expected economic growth in the second quarter and wall street bracing for what could be unemployment numbers that are dismal this friday. >> there is no question that the growth slowed in the past
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two quarters, there is no question that job creation slowed. >> the president blamed the slowdown on the tsunami in japan. the debt crisis in europe and arab spring spiking energy crisis. a top strategist is warning that without help at home, they are creating economic danger. >> they are feeling like the job situation is getting better. >> that is not good for november unless it turns around quickly. >> the president will do a bus tour through the midwest this month to reconnect with voters in the economically distressed state but this hour, on his way home to chicago for rundraisers. the tickets ranging up to $35,000 a couple for vip access to dinner with the president connected to his birthday and concert with jennifer hudson and other big stars. to question that he will have big money, great money in this
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campaign. question is whether he will have a great story to tell about the economy. >> bret: thank you. the service sec somewhere experienced the weakest growth. they employed 90% of the country's workforce. orders to u.s. factories fell .8 of a percentage point in june. the second drop in three months. the dow today broke its eight-day losing streak adding 30. the s&p 500 gained six. nasdaq finished ahead 24. italian prime minister is rebuffing calls for his resignation. following another slump in the country bond market today. burleson told parliament italy has not done little in response but that it needs to do more. greek taxi owners voted to continue a strike through saturday. they're upset at the austerity measures. we told you earlier the
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challenge is running for re-election and prepares to make the run. national security correspondent jennifer griffin reports that president obama's problems do not end at the u.s. shoreline. >> going in the next election, president obama could be fighting three wars. all u.s. troops are supposed to leave iraq and now thousands are expected to stay. the u.s. report says the country is less safe than it was a year ago. in afghanistan, the president ordered 33,000 u.s. troops be withdrawn before novembe november 2012. in libya a war that said president obama would last days not weeks is entering the fifty month costing the u.s. nearly $1 billion. the state department liaison to rebels was asked when president muammar gaddafi would leave. >> i would want to put a date on it.
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>> giant chiefs chairman mike mull season fopped of saying the nation debt is the biggest national security threat. in july, his replacement agreed saying i wouldn't describe the economic condition as a single biggest threat to national security. take iraq, where iran is trying to fill the vacuum. knowing the u.s. is preparing to leave. >> oil's clear they are dependent and beholden to version war view. >> 1600 attacks on nato troops in afghanistan from roadside bombs in june. up 25% in may. the current u.s. intelligence suggests nearly all the calcium ammonium nitrate used to make bombs killing u.s. troops come from the two factories in pakistan. the fertilizer plant and the marijendo kahn plant of the fatah group but the pakistanfy government won't shut them down. the arab spring is looking
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like winter and the muslim brotherhood looks likely to win big in the upcoming election. u.s. special operation forces are operating in yemen against growing al-qaeda threat. >> defense secretary leon panetta warns the next pearl harbor could be cyber attack. >> along the line it's revealed the wide ranging cyber attack revealed the entity since 2006. what are the or gin of the attack? >> the operation shady rat was uncovered by the cyber security firm mcafee and emanateed from china. it targeted contractors, entities in taiwan and the anti-doping watchdog of the economic committee but they say the losses were minimal. >> jennifer live at the pentagon. thank you. >> after the break, why republicans are ripping one of their own for being quiet. later in the grapevine, the story behind a video of mayor taking parking law enforcement
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>> bret: some of the men and women running for president or considering it are taking shots at one of their own. chief political correspondent carm cameron reports on the g.o.p. front runner drawing fire for what he isn't doing. leading the polls despite months of infrequent, mostly low-key campaign appearances dedicated largely to obama bashing, mitt romney is now under mounting attack from g.o.p. presidential rivals he has been trying to ignore. the latest in his web attack series obama isn't working, continues to emphasize the negative in places where the president has politiced. >> change has come to america. ♪ ♪ >> romney's played the quiet front runner for months hoping
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to float above the fray among trailing rivals. with the fox debate and g.o.p. straw pole in ames and the campaign ramping up for post labor day campaign push, romney is facing steady fire from rivals trying to catch up. former utah governor jon huntsman stalled in the low single digits and routinely rips romney for signing the massachusetts healthcare reform law that became "america's next top model" for obamacare nationwide. kentucky senator rapid paul promoting the mailer promoting ron paul's bid including the zing, "it's surely not time to elect someone who passed blueprint for obamacare while governor of massachusetts." he's been criticized for staying quiet on the debt talks. fox news contributor has not decided if she will join the field. >> bless his heart, i respect for romney almost but i do not for what he has done through the debt increase debate. >> reporter: presidential campaigns are tough for house members. the last one to win was 130
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years ago. bachmann cast herself as an outsider. inside congress. >> politicians are looting the treasury and bankrupting our nation. barack obama has driven our economy in a ditch. someone needs to say no. i voted against raising the debt limit because it's time to balance the budget and pay down the debt. i mean it. you can believe it. >> bachmann's latest tv ad. for tim pawlenty, he is taking shots for most of the rivals as well, trying to get traction in iowa. for the last several days he was fundraising in florida, which suggested to some he may not be expecting to excel if iowa and new hampshire. digging in for a long primary slog. he plans to hit 26 iowa towns between now and the big debate and straw poll next week. >> bret: one week and one night from tonight. carl, thank you. democrats have made it clear they hope to raise the revenues in the next round of debt talks. that means the tax increases. they have made it clear they have favorite targets. but would the produce real
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savings? if so, how much? chief washington correspondent jim angle does the math. >> democrats have a wish list of tax increases they argue would fix many of the deficit problems. a list of targets that has become a democratic mantra. >> subsidies to oil and gas companies, tax loopholes that help the billionaires pay a lower tax rate. >> millionaires, billionaires and corporate jet owners. >> super rich and big oil and big corporations that enjoy the tax give-away. >> there is a democratic list of big bad boys in the tax code that they want to get rid of. >> what do democrats, especially liberal ones got every tax increase they yarn for? how much would that reduce deficits? take the constant refrain of corporate jets for instance. >> they can't pretend they'll fix tax code by the corporate subsidiaries. i won't make a dept in the problem. >> ending that break which the administration itself extented and expanded would only raise $3.1 billion over ten years. then the tax reduction on oil and gas companies. eliminating those jep rates
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$40 billion over ten years. another favorite target is hedge fund managers. >> there is something fundamentally wrong when a billionaire hedge fund manager pays a lower tax rate than the secretary. >> those manager's income tax the capital gains that is lower than regular tax rate. changing that would only bring in $20 billion over ten years. the biggest target of course is raising the taxes on wealthy americans. >> as the republicans call him the job creators the millionaires and billionair billionaires -- >> actually higher taxes start below $1 million at family making $250,000. but even that only brings in $80 billion. >> it's going to be hard to raise significant revenues. only focusing on the well off. >> president obama and his allies proposed several other tax increases including limiting deduction for those making more than $250,000. throw that in and you get another $300 billion. so even a generous list of tax increases proposed by democrats would add up to less than $1.# trillion over ten
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years. not close to covering $46 trillion in unfunded entitlements. >> we are not going to fix the problem without fixing entitlement. social security, medicare, medicaid. >> but the democratic wish list wouldn't make a dent on that front. i wouldn't be enough to cover additional cut that congress has to come up with by thanksgiving in washington, jim angle. fox news. >> bret: federal appeals court vacated its rule declaring hazelton, pennsylvania, immigration law to be unconstitutional. the u.s. supreme court had ordered the panel to take another look at the issue. today's action does not mean that hazelton can begin implementing the law which would deny permits to businesses hiring illegal immigrants and find land lords who respect to them. the justice department today announced it's charged 72 people in connection with online bulletin board that promoted pedophilia and encouraged the sexual abuse of young children. justice and homeland security say they shut down the site called dream board. it required members to upload child pornography to join.
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52 suspects have been arrested so far. still ahead why turkey may not be what is for dinner tonight. we'll explain. straight ahead, humiliating images of a man who used to be one of the most powerful in the world. blan
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topping international news now, nato commanders say three coalition members were killed in afghanistan two in a roadside bombing in the south. one died in a non-come pat related incident in the east. no other details released. >> syrian troops cut phone lines to hamas and tanks took over a main square today. fresh explosion and machine gun fire were reported. around 100 people have been killed in hamas since sunday.
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>> lib ran rebels fought off attack a key city 100-mile east of tripoli. this video from tuesday shows the rebels firing rocket prepeled grenades at loyalists to gaddafi. egyptians today saw something they thought they'd never see. image of the former president on trial. >> this is how the man who ruled egypt 30 years arrived in court. reeled in on a hospital bag looking whack. placed in cage which is customary in egyptian courtroom. when asked he responded to charges of corruption. >> i deny all the allegations completely, he said. he said the sons that are tried on corruption charges with the six police officials pleaded not guilty.
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>> at time the judge had difficulty maintaining order in the court. >> they were clashing with each other and the concern is they could spread throughout the city. >> 800 people lost their lives this year protesting the former regime. the army took control after mubarak stepped down last february. the armed forces are trying to reassure egyptians that the revolution is going in the right direction, he said. reassure the families and the martyrs that their death, they did not die in vain. the trial comes as muslims are fasting for ramadan. not all are supportive of humiliating the former president. >> he did some bad but he did good for the country. if convicted, the 83-year-old former egyptian president could face the death penalty and he won't appear in the courtroom for two weeks and will be held at military hospital. the trial mark what is many hope is a first step toward democracy in egypt.
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>> in cairo, reena ninan. fox news. a judge says donald rumsfeld can be sued personally by former civilian contractor who says he was tortured in iraq. >> the army veteran says he was abused by the guard. the judge said he was not personally liable for the conduct. the judge disagreed no comment from justice or rumsfeld. we have update on the presidential candidate with name recognition issues next in grapevine. we will tell you why a big city mayor drove a tanks over this mercedes. c300 sport sedan. but hurry before this opportunity...disappears. the mercedes-benz summer event ends august 31st. when they taste the food that you cooked, it does something to your heart.
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this summer put your family in an exceptionally engineered mercedes-benz w for an exceptional price during the summer event. but hurry, this offer ends august 31st. >> bret: now grapevine. last week, david wu said he would resign after the debt ceiling was solved, but wu has yet to submit his resignation governor to the oregon governor or john boehner. he did record a video ahead of the vote monday saying it was likely to be his last and bidding viewers godspeed. we called wu's office but the phones went straight to voice mail. presidential candidate jon huntsman does not have the highest name recognition with the republican voters or apparently his own staff.
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for second time, huntsman's staff members misspelled their boss' name on campaign literature. the first was at his campaign launch. this time on a fundraising mailer. both times his name was spelled j-o-h-n. not j-o-n as is correct. also on the june mailer is a quote attributed to the "wall street journal." calling huntsman, "the conservative problem solveer." and while that did appear in the article, it was the journal quoting huntsman talking about himself. he says major staff changes have been made since then. if you are looking for problem solveer, check out the mayor zuoukas who is fed up with parking luxury vehicle in bike lane from a few years ago so he made his point. driving armored tank over mercedes. when the supposed owner comes
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out the see what happens the mayor greets him with a smile before cleaning up the glass left behind and riding away on you got it, a bicycle. the mayor spokeswoman says the car was purchased for the stunt. this is a fox news alert. agriculture department announced recall of 36 million pounds of cargrill ground turkey linked to death from salmonella poisoning in california. 76 other people in 26 states fallen ill. this strain is reanalysis tent to the commonly prescribed antibiotics. critics of the poultry says it could stem from overuse of antibiotic on the poultry far farms. >> the concern is we need super bugs. so the only thing worse for consumer than being told you
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have salmonella and you're ill is treatment options are dwindling. >> bret: 36 million pounds of cargrill ground turkey. deadly danger in abundance of heat and lack of rain plaguing the nation. kris gutierrez has update from the hot zone. >> today marks 33 consecutive days that the mercury topped sen curry mark -- century mark if dallas. record is 42 days in 1980. the health department is reporting 12 heat related deaths this year, three more than last year's total. this is just the third day of august which is the hotst month of the year. >> it's scary in 1980-'81 it was bad but this is hot. really hot. we can get through it. >> the u.s. drought monitor shows large portion of the south and southeast are experiencing severe drought. texas is by far the worst with 75% of the state and the driest rating possible.
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>> it's so hot, water is evaporating from lakes across the state at an alarming rate. low water levels in nacogdoches texas revealed this tank from the space shuttle "columbia" which broke apart in reentry more than eight years ago. >> even local water parks are coming up with creative ways to keep cool. this dumped ice in wade pool. >> we had to get in the water to cool off. >> the high school football practice began this week in texas. louisville, north of dallas, the district drafted a heat policy and it forces coaches to stop practice for water breaks every 20 minutes. >> a whole different atmosphere than what it once was. for the better. >> the state's power friday is getting a work-out in dallas, yesterday, 6,000 customers lost power when a substation failed. prompting pastors across the state of texas to encourage parishioners to pray for rain. to help cool things off.
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in dallas, kris guutierrez, fox news. the u.s. set a record for april for the most tornadoes in a month. final tally was 753. included that was a large outbreak rather in late april. that killed 300 people. the old record was 543 tornadoes in may 2003. we'll talk about the partial shutdown of the aviation and the fight about it. the fox all-stars join me after the break. ♪
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we need to act on this issue now. 75,000 americans demand it. our country demands it. and it's irresponsible to hold hostage. these people and our country and the safety of our airways. pending some petty political gain that might be reached. >> this is the 21st extension. again, i think that the american people are tired of
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wasteful spending. subsy dieding passenger tickets. >> this is a lose situation that can be solved if congress gets back in town and does its job. >> wow! you thought the back and forth and the fighting was over after the debt ceiling extension. it's not. they have been sent home without pay, because this faa extension, authorization has not been passed. a bill that passed the house. in the senate. the democrats have problem with the bill in the senate. the house has gone home and the senate is calling the house back to action as is the president. senator reid was asked if the temporary extex was on the
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floor at the end of the day and didn't happen, would the democrats accept the house version and reopen the faa? at the end of the news conference he said -- >> bret: that is not the case. we are in a standoff right now. bring in the panel. steve hayes for "weekly standard." a.b. stoddard from the hill. and sindcated columnnist crowd crowd crowd. we all have handoffitis, a.b. give us a synopsis for those at home who have to get caught up on the faa standoff. >> it's gone back to the senate passage of the bipartisan bill in the winter. this ends up being i don't like your version and you deep like mine. the house on july 20 passed a short-term extension because you were on the stand off.
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at that point, the senate democrat passed an extension through september 30. so there would be no furlough, no problems, but it kicks in action a few days later. because the senate has not accepted. the democratic majority in the senate is having issue with the house's version of the bill. there is dispute over the labor provision, that democrats view as antilabor. at 5:00, the senate majority leader asked speaker boehner to pass another clean version. they don't think the house version is clean enough. it's a continued fight over -- no one wants to furlough the workers. this is irreparable damage to the economy. they are having an argument and the senate is the one that won't accept the one preventing a furlough.
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>> bret: that made sense. for those following at home. it's much like the cup, cap and balance that passed the house originally in the debt ceiling back and forth. the senators say this is imperative to get the people back to work. speaker boehner says the only reason they're at stake is the democratic leaders choose to play politics. this depends on your point of view. bottom line they're out of work currently. this could be 1 billion if they don't resolve it until september. airlines jack up ticket prices to take the additional money. >> the airlines, the ticket prices are staying the same. the airlines get the money and not the government. the house passed the extension and had nothing in it that
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wasn't in the senate bill. the bigger senate bill back if february. passed the senate. so what you are having is objection from the senate about things that were in the bill they voted on. not a labor provision in the extension. >> this was all in the senate senate bill 223. all in that bill. passed in february. a change in way the eas airports are treated. how much subsidy they get. >> explain eas. the small rural airports that get the federal. >> federal subsidiaries to help have passengers at the airports. don't support it on their own. the market won't support. some the per ticket subsidies are extraordinary. $3700 is the one in nevada. this is the dispute right now.
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this is a dispute over $16 million and the government will lose $1 billion because of a dispute where the senate voted on this already. >> so -- >> this is the senate's idea of a tax cut. i like the continuity of the civil tone of the debt ceiling debate. people are being accused of taking hostages, being terrorists. one senator said that republicans are holding a gun at the head of the senate. >> we hear it over and over again. >> that's become a normal trope of the democrats. this is over two items. one is the labor provision. this is a provision that has
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been there for 76 years until it was overturned by board, board pointed whose majority is obama/pointed. it was changing the way you can unionize. i used to be you what to get majority of the union, which sounds logical. it was changed, of course, from the union pressure to getting majority of those who vote, with a lot lower standard. again, a change from something that was in place for 76 years. it's in tune with the way that the unions have been exerting regulatory changes under the radar in this administration, stuff that can't win in congress. like the suing of boeing for opening a plant in south carolina, nonunionized plant. it's like the other provision where unions are complaining about not getting enough. they are disappointed that obama did not deliver on card check, which was the ultimate objective. semily abolishing the secret ballot. they weren't able to get that
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distracting all they can, because obama owes them a lot. all this stuff is happening under the radar. regulatory agencies. >> bret: a.b. from a democratic point of view. is this a political winner number one? number two, is there something that the president can do outside of congress, solution to this to get the folks back to work who are furloughed? >> you know, i don't know that he can. but he says he expects a resolution in coming days. i don't know how -- >> bret: house is home. >> thee are saying in proforma session to keep it going so the administration can't sneak in on a recession appointment. if someone gongs it in and out. they are arguing that it could easily, something could be done in proforma session. to pass temporary extension to prevent the furlough.
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>> i don't know if president can do something but he is acting like it should be done soon. hoping that the chambers will do it. i don't see it happening. i think we look to several weeks. >> the senate could act on this thing. labor provision is part of the dispute but they are a separate bill. >> no reason it has to be done. >> bret: if people thought washington was slow to act on the debt ceiling extension. >> weird. the gong and empty chair. >> we'll try it to explain it to you. up next, president obama challenges and vulnerabilities as he seeks re-election.
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the economy is weakened, partly because of the things we couldn't control. like the japanese earthquake and the situation in europe. as well as the arab spring and the effect on oil prices. i am meeting with my cabinet to make sure that even as they have been throughout the last several weeks they are redoubling their efforts to refocus on what matters to the american people. >> the president heads to chicago for a big fundraising effort and sell brace of his birthday. he is facing some tough head winds with the economy. adp, the private sector payroll processor says that the layoffs are up 60%. 16-month high. we are back with the panel. challenges for the president re-election and remember after the killing of usama bin laden
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there were many pundits out there who said he is going to cruise. >> that was premature i think. this is an election won and lost on the economy. and on size and the scope of government. he is going out now to the pid west because he can't actually challenge the economic numbe numbers. they are what they are. they are not good. he wants to be emphasizeer and chief. is up your concerns we're listening to you and out among you. i'm not if washington. i am listening to you and the concerns. the reason he is doing that is he is interested to winning back the independent voters. if you look at what the president did in state he is hitting in 2008, when he won the presidential election in 2008, he won the ints by a gad
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par gin in ohio. in 2010 it flipped entirely. the midwest went red. senate candidates in ohio, rob portman won the independents going away. that is what the president is concerned about. >> bret: a.b. the white house press secretary says they don't believe there will be a double dip recession. but the former advisor wrote this. indicator suggests the economy has a one in three chance of falling back to recession if nothing new is done to raise demand and spur growth. you hear the president with the refocus. they trite not to talk about the pivot but refocus on jobs. how will the white house capitalize on the message? >> it's so tough for them. thaw know they have a small window. we talk about the debt ceiling debate about the term nant state of a budget fight. that the congress will be in.
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the fall will be taken out with fighting over the budget for 2012 to take us in to october. the super committee, that is set to resolve the debt saving that the debt deal promised, it goes in november and december. the president can't talk about jobs. he has a couple of weeks where he can tour the midwest to focus on jobs but he knows at the end of december, some, the payroll tax cut and the unemployment insurance benefits that were passed last december are set to expire. huge hit to consumer spending and a knock to economy at large. he knows there are no arrow in the favor and no hope in indicator. >> bret: you mention a bus tour they plan for the midwest. a bus tour. the politics of that offer some, you know, picketing or whatever about the economy, one would think.
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>> he thinks that sarah palin's bus tour was a smashing success. >> i don't know. >> joe the plumber still in ohio? he will find the bus for sure. it's interesting that the spokingman said the president now that he is leaving so dom and gomorrah washington said he is talking and jobs and deficit. it's interesting he added deficit. that wasn't in the mind of obama and the democrats six months ago or a year ago. they are forced to defend administration on two grounds. jobs about stewardship and deficit, ideology. there will be so much monopoly over the extension of the budget, october 1, and then over the debt, the commission that we will be talking about debt, which ironically i think
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helps the president. he doesn't have anything to offer on jobs. just larry summers and others like him who say a gigantic stimulus increase demand. i don't think it's a good idea but even if it were it has no chance to be enacted so he doesn't have anything. he has no proposal on jobs of any significance in a way, he is spared being exposed by having no proposal on jobs by talking about debt. but he loses on that argument as well. >> bret: we'll talk more about this and the birthday party and the 2012 race in the online show tonight. that is it for the panel. but stay tuned to see what may have been the toughest part of the debt ceiling negotiations for senator harry reid. [ male announcer ] imagine all of your missed opportunities
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outrageous comfort, all-day long. >> bret: i want to add, this alaska airlines, one of two airlines reducing fares passing on the savings. emails coming in left and right. finally tonight, there has been a lot of talk about what democrats and republicans gave up during their compromise to raise the debt ceiling. what you are about to see is a real speech, part of a real speech on the senate floor from the majority leader and it appears one item used in the negotiation was very close to his heart. >> i have a home in nevada. that i haven't seen at months. my pomegranate trees are blossoming and i have some fig trees and roses that i just haven't seen. >> oh my god. how is obama going to tell harry reid that he also gave the republicans his palm that

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