tv Studio B With Shepard Smith FOX News May 17, 2012 12:00pm-1:00pm PDT
>>megyn: thank you for watching, everyone, "studio b" with shepard starts right now. >>shepard: core run transportation security administration agents and potentially billions in wasted tax money, prompt add major hearing on capitol hill today. details coming up. plus a major shift in the makeup of our nation. for the first time in american history, white births are now the minority. and a new study indicates if you take a popular antibiotic known as z pack, that could more than double your chance of having a deadly heart condition. the details on that coming up unless breaking news changes everything. this is "studio b." but, first, from fox at 3:00 in new york city, less than 24 hours from now traders on wall street could get their hands on
a part of history when shares of facebook will hit the nasdaq, "fb," but two lawmakers have proposed stiff new penalties to a billionaire they blame for gaming the system trying to get out of paying tens of millions in taxes while facebook goes public. we learned this man, one of the cofounders, has renounced his american citizenship, lawmakers say he is a tax dodger who lives in singapore and the democratic senators schumer of new york and bob casey of person say this could save him $67 million in u.s. taxes. the amount is obviously in dispute. the facebook co-founder told "new york times" newspaper that he had no intention of dodging uncle sam adding and i quote, "i was born in brazil, i was an american citizen for 10 years, i thought of myself as a global citizen." senator schumer says, he doesn't buy that. >> he wants to de-friend the united states of america just to
avoid paying taxes. we are not going to let him get away with it. the senators want to ban entrepreneurs like the facebook co-founder from getting back into the united states if they tried doing the country if the tax breaks and lawmakers are proposing a new bill to make it happen. 9 chief fox correspondent jonathan hunt is in the studio on the lead story, so, what would this bill go, exactly? >>jonathan: it is called the, patriot act. what were you saying? this is hardly exciting after that drama. but it is calmed the ex-patriot act and under the rules if the i.r.s. decided this facebook co-founder or indeed anyone like him is renouncing their citizenship for tax purposes, then in future they have to pay 30 percent capital gains tax on any investments they have not united states. that person would also be bound from ever coming back into the
united states. the united states even for business purposes or a visit to disneyland and senator schumer made this very personal at press conference. >> he says he is a global citizen. but it just so happens the country where he has chosen to reside, singapore, has no capital gains tax. this tax avoidance scheme is outrageous, and he has turned his back on the country that welcomed him and kept him safe, educated hill, and helped him become a billionaire. >>jonathan: senator bob casey with senator schumer put it more succinctly saying he is "spitting in the eye of every american." >>shepard: how often does this happen? >>jonathan: what the government figures so far this year, some 460 people have renounced their u.s. citizen 147
compared two telephone -- 2012 20121,400, and the most, the lowest recent figure, was in 2008, 226. but, what the figures do not show us, is the justification in each case for that person renouncing their citizenship. so the bottom line we cannot put a figure on how many do it as a tax dodge but it must be a hyper sent of the figures. >>shepard: and now to arthur aidala and randy zelin and with the public relations consultsant, frazier is the all their of rethinking reputation how p.r. trunks marketing and advertising, what a p.r. mess they have here, fraser. >> so transparent and he went on the offensive yesterday being interviewed by "new york times" and he said, i'm a citizen of the world, of the globe.
we are stupid but not that stupid. the point is, tomorrow, his capital gains would be in excess of $3 billion. that is why he did this. the interesting thing to me, in the movie, in facebook movie he was the sympathetic figure, because he is the one that zuckerberg and timberlake knew out of the company, so, he has transformed himself from sympathy, sympathetic figure to a common tax cheat. >>shepard: legally speaking, what can go on here? >>arthur: nothing. nothing. nothing. that is why schumer is on the offensive and why they are enraged. senator schumer. used to be my congressman. i apologize. you watch that movie, it is a great movie, a big movie, and
you do feel bad for the guy. this reminds me of the secret service agent, they use the women and it comes time to pay they didn't want to pay. he came to america, he used us, time to pay, he doesn't want to pay. >>shepard: breaking news, mitt romney is speaking, and a super pac that a billionaire announced he would try to work for governor romney, i think the figure was $10 million on taking down president obama and show something with his former pastor, reverend wright, well, mitt romney has come to the microphone unexpected and said i'm not going to work with these people. i'm not going to accept their help and is going through more campaign stuff. governor romney live. >> this is a campaign about the future. who can get america on track again to create good jobs. who can do a better job for our kids. it is about jobs and kids. and having a campaign focused on
character assassination is one of the things i find offensive among many others in the pac description that came in the "new york times". if that is accurate, why, that is something i repudiate. (inaudible) i am actually, i am not familiar with exactly what i said but i stand by what i said whatever it was and with regard to, i'll go back and look what was said there, but the focus of my campaign is going to be as i suggested on the future. who can do best to build an america that has great promise. and great opportunity for
fulfillment of dreams. (inaudible). >> you have to win the number of states that gets you over the electoral majority but florida is certainly a state i want to win. a state and george w. bush won. and given the fact that it has voted republican in the past, as well as democrats this is a state that will be a battleground state and i hope to win this. and ohio. and virginia. north carolina. a number of states that should be in my column if i am to be successful. as to which is must win and which could fill in for one that might underperform, i cannot give you that but i can tell you, you know, florida is a state i am counting on to be success will. thanks, guys. >>shepard: governor romney, the presumptive republican nominee, this thing kind of exploded this morning, i guess, in the big cities in new york and in washington, dc. as a billionaire came out, "new
york times" reported it, a billionaire want order spend around $10 million to talk about a number of unspoken things so far about president obama and pastor wright. whether there is anything to it. can they go head do it by themselves without the cooperation of the campaign? i suppose so. mitt romney said, well, i won't work with them. fraser, your thought? >>guest: good for him. it was a big story. no one likes pac's. what he does was seize the agenda. took the high road. one for romney. >> long term, how he plays it down the road will be important, as well, because the pac's can work independently. >> they can but he has to strike the ground of the high road, and say i'm here for the future. he has to set the primary behind him and start walking down a new road. this is the first move he has
done in that regard. >>shepard: by way of observation, and observation only, if i'm on the other side i might seize on one line from that, where he said i'm not sure exactly what i said but i stand by what i said, whatever it was, that is the kind of thing the other side has used against him, these sorts of off the cuff --. >>guest: he is not good ex-temperature -- not good off the cup. but the pac was going to focus on reverend wright and romney has decided, forget it. move forward. and strike your ground to say that's in the past. good move. >>shepard: the campaign moves on. thank you, fraser. u.s. homeland security is under the microscope on capitol hill today. lawmakers are looking into cases of misconduct, corruption, and wasted taxpayer dollars and the specific focus here, a series of what are called "particularly disturbing breaches at the
nation's airports." for example, t.s.a. agents stealing from passenger luggage. t.s.a. agents taking bribes to move drugs through security and the airport security supervisor working under false identity for some 20 years. it all adds up. and now, catherine, we learned some new details. >>reporter: according to the prepared testimony, an officer stole more than 80 laptops, cell phones and ipods from passenger luggage between 2008 and 2011 and later convicted on theft and embezzlement. both the chairman and ranking member were outraged that t.s.a. workers would steal from the passengers they subject to the screening tactics. >> the idea that the t.s.a. officer would take a bribe to allow thousands of pieces of luggage to go through improperly screened, or to allow drug trafficking organizations to
have unfetter the -- unfettered access this is what the terrorists are looking for. >>shepard: there was a case of a manager scamming on overtime or something? >>reporter: this is incredible. the top intelligence officer at immigration and customs enforcement pled guilty to defrauding the government of $180,000 in bogus travel and overtime. he was part of a larger scam that cost i.c.e. more than $600,000 and he is expected to get define 18 months and three years in prison. they were requested as witnesses by the committee, neither the t.s.a. administrator or the head of i.c.e. testified today. >> that to me says something. about how seriously they are taking this issue. or how not seriously. >>reporter: a staffer tells fox another hearing is planned this summer on border patrol corruption and asked for an
outside investigation. >>shepard: another sign of life in the job markets with companies hiring, but is it enough to push down the high unemployment rate? that and the other big money headlines next, and closing argument in the trial of john edwards. after weeks of testimony. did the prosecution ever prove the former presidential candidate and senator did anything illegal? we will hear about closing arguments. [ male announcer ] this is coach parker... whose non-stop day starts with back pain... and a choice. take advil no and maybe up to four in a day. or choose aleve and two pills for a day free of pain. way to go, coach. ♪ or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today.
>>shepard: the bad boats from america's biggest bank, j.p. morgan chase, have reportedly upped their estimated losses from $2 billion to more than $3 billion. that's according to the reporting of "new york times" which credits bank insiders. you recall the c.e.o. of j.p. morgan chase warned the losses could, possibly, double by the end of the year. traders is blamed one j.p. morgan chase employees for most of the bets.
he he is reportedly leaving the company. good and bad news on the economic front. first the good, the number of people filing first time claims for jobless benefits is the same at 370,000, and analysts say that number is low enough to suggest that jobs market is improving. and, then the bad news, the dow, that is on track now for the 11th loss in 12 sessions. down about 95 points at moment and the associate editor of barron's magazine. >> having a flashback to last year the uncertainty of the european debt situation and a slow down in momentum in u.s. economic growth got people worried that we were in for something worse economically. >>shepard: the jobs number? >>guest: they have been flattening for the weekly unemployment claims and not showing a real strong job market right now in terms of gang
busters gain and monthly jobs but they are okay. right now if they stay in this zone it means we are adding jobs on the monthly stretch, but it is not really the kind of thing you get excited about. it was looking better in the winter with give back because of warmer winter. getting better slowly in a choppy way but not satisfying way. this is 2.5 percent economic growth. it doesn't feel as if everyone is doing well but this is probably what we are looking at barring another shock. >>shepard: and now, there is, we got another debt ceiling crisis coming up the two sides made it clear they will fight about this, and if it doesn't go well, and they cannot reach agreement, quote have our bonds cut again, the economy could go south again, and that would be to the advantage of whoever is not in the white house at the moment, do you see this coming? >>guest: it doesn't have to come until after the election. in terms of the actual deadline that we are talking about here
it is not like last year when we kept having to push the deadline back and the debt ceiling vote through the summer, but, obviously posturing will happen beforehand. it will be more rhetorical than a real stand off in terms of, are we going to raise the debt limit? will we do something about the budget? i don't think any grand bargain will happen. but i don't think it is the true zero hour until after the election. that is why everyone is cringing for that lame duck period after the election because obviously, a lot of tax cuts expire and the roast. ship both sides are good at that blouses step. our country is changing in a way we will all be able to see. less than half of all babies born in the united states are caucasian. we will find out what that means for the mean. plus, she thinks it, the robot does it. you hear that?
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>>shepard: another tragic death in one of the most famous families. sources say the estranged wife of robert kennedy jr. hanged herself at her home in new york. the medical examiner has now confirmed she died of hanging. a housekeeper is reported to have discovered her in the garage on the estate about an hour north of new york city. sources say she left a note and that none of the four children
were at home at the time. she was the second wife of the prominent environmental lawyer and the son of senator robert f. kennedy and the revenue of president john f. kennedy. she had a troubled history with drugs and alcohol, including several arrests for d.w.i., and in a statement the family described her as "gifted architect and a genius at friend." she was 52 years old. for the first time in american history racial and ethnic majorities make up the majority of newborns. fewer than half of the children born between july of 2010 and july of 2011 were white of european descent. white hispanics, blacks, asians and other minorities accounted for 50 percent of all births. the latino population is the fastest growing population, and the report is noteworthy for a nation where the government was founded by white europeans and wrestled with race issues from
the civil war to slavery to recent battles over legal immigration. this should not come as a big surprise to much of anyone. >>reporter: it was expected but no one knew exactly when this tipping point would actually come. now, it resulted from the combination of aging baby boom population and higher numbers of immigrants of childbearing age. non-hispanic whites are still the majority in the united states, but not in every state. in hawaii minorities are the majority comprising 77 percent of the population. here in washington, dc, it is 65 percent. in both california and in new mexico, it is 60 percent, and 55 percent in texas. now, of course, all this comes as the high court is considering arizona's tough new immigration law as the two political parties compete for that growing latino vote. >>shepard: what are some implications that we may not
think of. >>guest: one is else, the biggest challenges going forward, at a time when state funds are drying up. right new blacks and latinos compare poorly against whites in high school graduation, college enrollment and earning a degree. political scientist says that's got to change. >> otherwise, we are going to develop a country where we have a very well educated population that has great years, and high income, and an ever larger lower class predominantly minority without the opportunity. no one wants to see that. >> it is estimated by 2040 the united states minorities will be in the majority. >>shepard: thank you, steve, from washington, dc. >> lying about your cheating wife or, i should say lying about cheating on your dying wife and violating campaign finance laws are two different things. that's the defense in essence from john edwards' lawyers as they try to paint gentleman
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time for the top of the news. closing arts -- arguments over in the john edwards. the lawyers say their clients committed sins but not crimes when he hid his mistress from his dying wife. the prosecution says john edwards used $1 million from wealthy donors to hide his affair with rielle hunter as his wife suffered from the cancer that killed her. lawyers say he may have lied about cheating on his life but he never intentionally broke any law the defense lawyers say his former aide used the money to buy his own dream home worth $1.1 million. if invisited he faces up to 30 years in prison and jonathan has covered this from the start and live from north carolina. what did the prosecution say during closing arguments? >>jonathan: a last time, the
prosecution tried to convince the jury that john edwards not only knew about the money that went into hiding his pregnant mistress during that 2008 presidential campaign, but that the scheme was to protect his political aspirations now vice president, notice just for president, and even for the supreme court. the prosecutor played off john edwards' campaign theme of two americas: a reference that john edwards used during the campaign to talk about the gaffe between rich and poor. he told the jury "campaign finance laws are designed to ensure the two americas come together. john edwards had in problem separating the two americas when it suited him." >>shepard: what did the lawyers say about that? >>reporter: they suggested that the prosecution was spending too much time dwelling on almost the salacious details of the affair, the emotion that
went in the coverup and the emotional impact it had on john edwards' wife without proving the funding behind the coverup violates the law. john edwards' we lead attorney pointed to the bible on the judge's death and a law book saying these two books remain never on the same table. saying this case should define what someone is committing a wrong or someone is committing a crime. someone is committing a sin. or someone is committing a felony. she delivered another attack on the key witness, describing former campaign aide andrew young and his wife as a "couple would could shame bonnie and clyde," adding if you cannot believe andrew young that leaves the prosecution with no evidence. >> thank you from the courthouse. and now to fox news legal analyst, arthur ride doll that on the left and criminal defense attorney randy zelin on the
right. where are we? >>arthur: what i found out, the way the prosecution ended their case, which is in my opinion devastating, if they showed an interview of john edwards 20 minutes of him looking at the screen for 20 minutes and lying on a very popular and substantial television program. he said that the affair was over. he admitted it happened. it was over. and the child wasn't his. and what they were able to do by putting that in, look what a liar this guy is. he is on a national news program. and he is lying to the world. without a problem. if he lied to them, his lawyers are acting like they are him, then they are lying to you. that is what he will argue. >>randy: lawyer, liar, they are close. but the reality is, the question is, what was he lie about? who was he lying to? was he lying to the voting
public to influence the election or to protect his wife and family in there were four critical things the jury has to deal with in terms of the case. they have to deal with the notion, were they gifts or political contributions? the two people who wrote the checks never testified. and the one person who did, you have to concede, has been portrayed pretty badly. remember, what today was the super pac stuff, john edwards would probably not be on trial because today with the whole super pac notion with we see today, right new, someone not affiliated with the campaign can sunday money how they want to support a candidate or oppose a candidate, and the knowledge and was it his objective to influence the election or to save his family? the prosecution has not proven it. >>arthur: you don't know that. you are not the jury.
i am not making the big pronouncements. they looked at the witnesses, if their eyes, and they heard how the questions were answered, that is the issue. do they believe that he knew what was going on? >>shepard: we will shall. speaking of super pac's, i have some new information. that guy from facebook, he is going to renounce his citizenship, and he is not going to pay his taxes, right? wrong. now he just announced he will be paying his taxes. jonathan hunt? the lawyers are clapping. >>jonathan: the co-founder of facebook said to the reuters agency, he will pay hundreds of millions in taxes to the u.s. government saying his decision to refunds his u.s. citizenship and relocate to singapore was "based on my interest in working and living in singapore where i have been since 2009," and says
i have paid and will continue to pay any taxes due on everything i earned while a u.s. citizen. the question if he renounced the citizenship and he makes that money after the i.p.o. tomorrow is that money he didn't earn when he was a u.s. citizen, that is a question he will have to answer. >>shepard: so, maybe we didn't learn anything but he was already required to pay the taxes that were duly while a u.s. citizen, and he is renouncing citizenship and tomorrow he makes the money, will he pay taxes on that? what is belong with your eye? >>jonathan: i have a bad eye infection. >>shepard: you should not be here. >>jonathan: better than a double hernia. >>shepard: do you have pink eye? it is more contagious. do you have pink eye? if you do you should not be here. >>jonathan: i am working hard for you. i appreciate it if you work hard
somewhere else. >>shepard: ladies and gentleman if you having eye and you work with 5,000 people in a 47-stone -- 47-story building spreading infections across rockefeller center. >>jonathan: i am all for working for the cause. >>shepard: well, go home. jonathan pink eye. have you gone to the doctor? >>jonathan: i have seen the doctor. >> take z pack. >>shepard: he will pay his taxes but we don't know if he will pay them now that he has renounced the citizenship. jonathan will not be here unless i -- i have no power the i just read the words and mess up. the popular antibiotic z pack, which jonathan will not take
could increase your chances of a rare and deadly heart condition. according to the new study. last year, the drug was the eighth most prescribed medicine in the united states and researchers say that over 14-year period, there were 29 heart-related deaths among those who zoom the drug which suggests that those who take z pack have double the risk of death compared to patient whose took another antibiotic or those that did not take any at all. trace is a sufficient amount of way from jonathan not to catch los pink eye, the chance of death is still very small. >>trace: the research estimated that for every million who took z pack for five days 85 would die so it is rare but if you do not take the drug at all only 30 out of a million die so the risk is quite a bit
heighter. the study tried to level the playing field by making sure those who took the drug had the same rate of heart disease as those who did not take the drug and they found out the worse your heart disease the higher the risk. >> it does not imply whatever in this study, that i should not as a doctor prescribe z pack but that i should be aware that if you have a history of heart disease or if i intend to use the medication for a long period of time i should think about it twice. >>trace: all patients were on medicare, lower income and higher disability people. but it is not clear if the general population has the same results. >>shepard: what does the drug company say? >>trace: pfizer is the biggest company that provides this, and they are saying and i quote, "we continuously monitor the safety and efficacy of our products to
ensure that the benefit and risks are accurately described." last year, 53 million prescriptions were issued for z pack, one in six americans, and the judge is showing good results and showing benefits for people with severe lung disease so the question now, do the risks outweigh the benefits? >> what is important is for both patients and doctors now to realize that this antibiotic which is still very safe, in certain people could be somewhat dangerous so you need to pay attention to risk factors. >>trace: $1.8 billion in sales last year alone. it will not help pink eye. >>shepard: and fascinatingly, jonathan is now on xanax and
ambien. you do not worry about the pink eye and if you start to, you just go do sleep. >>jonathan: perfect medication. >>shepard: add a guinness and stir. the "good" cholesterol may not be so good. the queen of disco, donna summer, has died. >>shepard: she defines an era, for many fans, number one hits made up the sound track to the 1970's. she is the 70's. "bad girl." "love to love you," shaped the dance club atmosphere of sex and drugs and wild fashion trends. donna summer, hit it big, again, in the 1980's when her women's anthem "she works hard for the money," came along, she returned
four years ago with the first studio album in almost two decades and appeared in "american idol," as a mentor. her family reports she died after a long battle with cancer. an icon of the 70's, maybe even more, dead, today, at 63. ♪ last dance ♪ last dance ♪ last dance hey dad. see how the carrots i grow
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for the white house, governor romney publicly reject add campaign proposal from a conservative super pac. that group reportedly proposed a series of ads that were to link president obama to his former pastor, the reverend wright. analysts called the relationship with the president a huge liability for the campaign back in 2008. as videos of the controversial
sermons turned up on the internet. today, governor romney said he wants nothing to do with the super pac plan. >> i repudiate that effort. it's the wrong course for a pac or a campaign. i hope our campaigns can respectively be about the future and about issues and about a vision for america. i have been disappointed in the president's campaign to date which is focused on character assassination. i think that we are wiser to talk about the issues of the day and what we do to get america working again and talk about our respective records and so with that, i certainly hope that you get a chance to so our first ad coming up in a couple of days. >>shepard: there you go rejecting that plan, karl cameron, governor romney's response was mighty direct. >>carl: and he said i hope you watch the ad next week when they
come out because it will be positive and he contrasted that to the first two of the three presidential ads from obama's campaign last few weeks that included attacks on mitt romney's personal character say this is clearly a campaign bit obama folks as a character assassination attempt where he will speak about issues. an opportunity for form to try to take the high road and put the president on defense, there was in question that early today, the obama campaign wanted to go on offense, and their campaign manager wasted in time fanning the flames, and blamed the right collectively for this one super pac proposal and said they are showing the appalling lengths to which republican operatives are willing to go to tear down the president and elect romney. and he said that the blueprint for hate-filled divisive campaign of character assassination speaks for itself. the irony is the ad will not run, the super pac did not intend for it, but it was a proposal for the billion dollar
benefactor to continue and he has said that he wants no part of that type of politics, a story that made it into the press, the media and cable and blogs but it not going to be seen on tv. >>shepard: it got ahead of itself. what do we know of the source which appeared in the "new york times" this morning and online, as well? >>carl: well, it's, "new york times" are the folks that broke this a multipage proposal that went to a particular super pac and someone was alarmed and gave it to the "new york times" and whether the conservative donor had between seen it and discussed it puts it in a category you wonder where it came from. campaigns look at all options, nuclear and less so and this is one that the super pac which is outside group not at all related to romney campaign may not have taken seriously on the table but it is not coming off the table so it raises questions whether democrats were looking for an
opportunity to scream fire in a crowded movie theater. >>shepard: always good of you, thank you. scientists have developed technology that allowed people to control robots using only their thoughts. look at this. we will talk to one of the scientists behind this project. but i tested it out, and bayer advanced aspirin relieved my pain fast. it helps me get back in the game. but don't take his word for it. put bayer advanced aspirin to the test for yourself at fastreliefchallenge.com.
>>shepard: scientists state women in this video, the woman in this individual joe controlling a robot with her mine. look at it. the researchers say, now, she had a stroke and that stroke left her paralyzed from the income down and she has been for 15 years. so they inserted an implants below her skull and it records signals from the brain and sends
them to a computer which feeds the signals to the robot happening, all in the blink of an eye and the technology is in the early stages, but the benefits could be life changing, obviously. for example, watch this. you can see the robot arm lift the bottle of coffee so the woman can take a sip. see that? she is doing that with her brain. the scientists say her brain did all of the work. the journal "nature," released this video and this is a scientist behind the project, dr. lee, an engineering professor at brown university and a critical care neurologist. how in the world did you get this done, doctor, congratulations? >>guest: thank you very much. just as you described, there were two participants that we are reporting both have, are unable to move their hands and no functional use of their armors legs and they both are unable to speak. they both enrolled in our pilot
trial and had a small chip placed right in the top of the brain, part of the brain called the motor cortex important for control of arm and hand. and the electrodes record the brain activity from that area of the brain, and send it down through wires to a little plug that protrudes above the skull and that goes to computers and the job of the computers is to decode the activity and turn the thoughts or intended movement of that participant into movement, in this case of a robot arm. >>shepard: your brain could translate to a computer, and how long does that process take? >>guest: for to work it has to happen nearly instantly in a matter of what we would measure in continues or maybe a fraction
of a second. >>shepard: what a life changer. how long have you been working on this sort of thing. >>guest: this research, really, is benefits from 4 years of publicly funded research to get to this point where we can begin to translate the research to a device we hope in the future can help people with paralysis and hopefully help people with limb loss and the real dream not research is to one day reconnect brain limb to limb to bring the signals back to the arm to stimulate the nerves that move the arm and allow someone to use their limb to pick up that cup. >>shepard: it is almost hocus-pocus to those who cannot fathom this. thank you for all thank you and the rest at mass general are doing. can you imagine? paralyzed for decades and all of a sudden thanks to this publicly funded work, publicly funded, did you hard that, i am shephard
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