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CNN Wolf Blitzer Reports

What Difference Will the New Bush Economic Plan Have?; Deadly Toxin Found in London Home of African Immigrants

Aired January 07, 2003 - 17:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


(BEGIN VIDEOTAPE)
WOLF BLITZER, CNN ANCHOR (voice-over): The economy again.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: By speeding up the income tax cuts we will speed up economic recovery and the pace of job creation.

BLITZER: Will it make a difference?

London on alert. Anti-terror police find one of the world's deadliest toxins.

TONY BLAIR, BRITISH PRIME MINISTER: This danger is present and real and with us now and its potential is huge.

BLITZER: North Korea warns of war.

MOHAMED ELBARADEI, IAEA: They like to escalate any situation into a crisis situation to get attention.

BLITZER: Are they bluffing?

Airborne but will they find anything? I'll ask former weapons inspector Scott Ritter.

Fanned by ferocious winds, a wildfire threatens a California community know for its rich and famous.

Is drug addiction a disability? A soap opera star sues to get his job back.

MICHAEL NADER, ACTOR: Just basically said we do not want you on the show and we never want you back on the show.

BLITZER: And he was a fiery advocate of Black freedom and pride. Now, a side to Malcolm X you haven't seen before.

UNIDENTIFIED MALE: This is his record of his thoughts. This is what he has written.

(END VIDEOTAPE)

BLITZER: It's Tuesday, January 07, 2003. I'm Wolf Blitzer in Washington. We begin with more signs of a gathering storm in the Persian Gulf as the United States builds up its forces. We get the story from CNN's Senior Pentagon Correspondent Jamie McIntyre. He's joining me now live -- Jamie.

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: Well, Wolf, as you well know, you were in Qatar last month as the U.S. military's top commanders were practicing how they would run a war against Iraq. Now, CNN is told that later this week some of them will start to go back potentially for the real thing.

(BEGIN VIDEO CLIP)

MCINTYRE (voice-over): Pentagon sources say the first of more than 1,000 U.S. war planners and battle commanders will begin to move this week back to a special commander center in Qatar specially outfitted to serve as headquarters for any U.S. led war against Iraq.

The battle staff includes virtually all of the top command staff that move from the U.S. Central Command in Tampa, Florida in December for Internal Look, an exercise that simulated running a war against Iraq. While the order clearly moves the U.S. closer to war with Iraq, the Pentagon insists President Bush has not yet made that decision.

DONALD RUMSFELD, DEFENSE SECRETARY: It clearly is not inevitable. The first choice would be that Saddam Hussein would pick up and leave the country tonight. That would be nice for everybody, or he'd decide suddenly to turn over a new leaf and cooperate with the U.N. and discourage of his capabilities.

(END VIDEO CLIP)

MCINTYRE: Well, tens of thousands of troops are on the move from the United States and Great Britain as this buildup continues and Pentagon sources say that by the end of this month the number of allied troops, U.S. and British, would number well over 100,000.

Again, the Pentagon insists President Bush hasn't made any decision, but today Secretary Rumsfeld again indicated that Saddam Hussein has not complied with the demands to disarm and President Bush was talking tough as ever.

(BEGIN VIDEO CLIP)

BUSH: The world's demands are clear for the sake of peace Saddam Hussein must disarm himself of all weapons of mass destruction and prove that he has done so. Should he choose the other course, in the name of peace the United States will lead a coalition of the willing to disarm the Iraqi regime of weapons of mass destruction and free the Iraqi people.

(END VIDEO CLIP)

MCINTYRE: And, Wolf, one more sign that the war plan is coming together, you know in the U.S. Central Command headquarters at Tampa, there are trailers out back with the flags of the 43 nations that are coordinating with the United States. A 44th flag will soon be flying there. We've learned that a military representative from Saudi Arabia has come to Tampa, Florida indicating that Saudi Arabia is now playing a more, a closer role in the U.S. in coordinating potential military action -- Wolf.

BLITZER: And finally, Jamie, you say that the U.S. is moving the headquarters staff in effect over to Qatar. What about the commander of the Central Command General Tommy Franks?

MCINTYRE: Well, he doesn't have to go until the very last minute and Franks is not going right away. He'll stay in Washington for more meetings with the Bush administration top officials. Then he's going to move over to the region for a last round of consultation with allies in the region and as a very last move he'll end up at that headquarters in Qatar. When that happens, watch out. War could be very close.

BLITZER: All right, Jamie McIntyre with important news from the Pentagon, Jamie thanks very much.

Britain today joined the United States in putting more pressure on Iraq. A naval task force and 3,000 Royal Marines were ordered to the Persian Gulf and 1,500 reserves were mobilized for a possible war. The Prime Minister Tony Blair, President Bush's staunchest supporter on Iraq, said if the will of the U.N. is breached then the will should be enforced.

Meantime, the French President Jacques Chirac, who has not embraced President Bush's tough stance toward Iraq, told French troops to be ready for "anything" in the period ahead.

U.N. inspectors took to the air today in their hunt for Iraqi weapons. For the first time since the inspections resumed they used helicopters to visit suspect sites, including a uranium mine. The head of the International Atomic Energy Agency, Mohamed ElBaradei said today that so far there's no "smoking gun," but the Defense Secretary Donald Rumsfeld suggests he needs no further proof.

(BEGIN VIDEO CLIP)

RUMSFELD: The Central Intelligence Agency has said what it has said and there's no doubt in my mind but that they currently have chemical and biological weapons.

(END VIDEO CLIP)

BLITZER: Joining me now from Albany, New York, the former weapons inspector Scott Ritter, once accused by Iraq of spying. He resigned four years ago saying the United States was too easy on Saddam Hussein. Now he takes a different view. Scott Ritter thanks very much for joining us as usual. As you take a look at these latest maneuverings going on, it looks like the war is virtually certain. I don't know if you have a different assessment.

SCOTT RITTER, FMR. U.N. WEAPONS INSPECTOR: No, it appears that the United States is fully committed towards military confrontation with Iraq. I do need to correct you on one thing. I never said the United States was too easy on Iraq. I said that the Security Council wasn't enforcing its law to disarm Iraq. Clearly, we have a situation today where weapons inspectors are back on the ground.

The council is speaking with a single voice to support the inspectors and it's the United States that's out of step with international law once again, seeking war when in fact there is no cause for war. The inspectors have said there is no smoking gun. There is no proof and Donald Rumsfeld, with all due respect to him, hasn't put any proof on the table to back up his allegations that Iraq has chemical and biological weapons.

BLITZER: Do you accept the notion, Scott that the Pentagon is fearful of putting too much intelligence out there in public in case there is a war that could endanger U.S. troops by letting the Iraqis know what the United States in effect knows?

RITTER: That's absurd. If the Iraqis have chemical and biological weapons they would use them against any invading force whether we broadcast that or not. I think it's imperative that if we're going to war against Iraq that we build as solid a coalition as possible, one that is well founded in international law and this means that we have to go through the Security Council.

Therefore, it is incumbent on us to put this proof on the table to demonstrate to the American people and the world that Iraq is, in fact, in breach of its obligations to disarm. All we have right now is rhetorically laced speculation and that's not flying not only abroad but here at home. You're seeing increasing concern that we just don't have the goods on Iraq to justify war.

BLITZER: What about the whole notion of the airborne, the helicopters being used now for the first time? Are they likely to find something that U.N. inspectors on the ground can't find?

RITTER: No, I mean the helicopters are useful from a logistical standpoint to transport inspectors rapidly from Point A to Point B, but again and also the helicopters could be used to mount some detection equipment, chemical detection equipment, gamma ray detection equipment, ground penetrating radar, and things of this nature.

But, the bottom line it's the inspector on the ground, the eyeballs on the ground. It's what the inspectors find when they physically arrive at a facility, the kind of sampling they take, the discussions they have with their Iraqi counterparts that will, you know, determine, you know, whether or not Iraq is in compliance. The helicopters are just a tool. We used helicopters extensively from 1991 to 1998. They enhanced our operations but they were not the core of our inspection effort.

BLITZER: One final question before I let you go. Saddam Hussein yesterday accused those U.N. inspectors of being spies. You've accused some of the inspectors in previous inspection teams of engaging in espionage, spying. Do you think that is still going on now? Do you believe that to be going on? RITTER: Well, I didn't accuse inspectors. I accused the United States of using the weapons inspection process for purposes other than that mandated by the council. That means that the United States didn't use the inspections to gain access to information about disarming Iraq, but rather about the security of Saddam Hussein, and as long as the United States maintains a policy, as the Bush administration currently does, of regime removal, it will use all the means necessary to gather the information necessary to take out Saddam Hussein.

And right now, the inspectors are the only players on the ground gaining access to the most sensitive sites inside Iraq, so there is no doubt in my mind that the Bush administration is using the weapons inspection process for purposes other than disarmament.

They're going after Saddam and it's a travesty because the inspectors are doing a good job. They're getting full cooperation from the Iraqis and to have the integrity of their operation polluted by an American policy that runs counter to international law is a shame.

BLITZER: Scott Ritter speaking forcefully as he always does. Scott thanks very much for joining us.

This footnote to this story involving Iraq, a very influential U.S. Congressman introduced a bill today to revive the military draft. The New York Democrat Charlie Rangel says he wants to jolt Americans into realizing the consequences of a possible strike against Iraq which he opposes.

(BEGIN VIDEO CLIP)

REP. CHARLES RANGEL (D), NEW YORK: I truly believe that those who make the decision and those who support the United States going into war would feel more regularly the pain that's involved, the sacrifice that's involved if they thought that the fighting force would include the affluent and those who historically have avoided this great responsibility.

(END VIDEO CLIP)

BLITZER: Both the defense secretary and the chairman of the joint chiefs earlier today rejected Rangel's proposal saying there's no need to revive the draft, which of course was in place from 1948 to 1973 when the United States switched to an all volunteer military.

Rangel is a decorated Korean War veteran. He's calling for the compulsory military or national service for men and women ages 18 to 26. The Bush administration continues to insist, as I said, that there is absolutely no need for a draft, at least not now.

Tough talk today also on another world hot spot, North Korea, which has moved to reactivate its nuclear program, warned that any form of economic sanctions would amount to an act of war, adding that the United States would pay a very high price in such an event. But after talks with the allies, South Korea and Japan, the United States has moved to cool things down a little bit. We get the story now from our State Department Correspondent Andrea Koppel.

(BEGIN VIDEOTAPE)

ANDREA KOPPEL, CNN STATE DEPARTMENT CORRESPONDENT (voice-over): A show of unity between the U.S., Japan, and South Korea, and in the midst of a nuclear standoff with North Korea an unexpected offer by the U.S. to talk.

RICHARD BOUCHER, STATE DEPT. SPOKESMAN: We're not going to provide any quid pro quos for North Korea to live up to its existing obligations but North Korea needs to make clear that it will live up to its obligations, that it will undo the steps, that it will end these nuclear programs.

KOPPEL: But a senior administration source tells CNN back channel talks between these two rivals have, in fact, been ongoing for weeks.

BUSH: I believe that by working with countries in the region diplomacy will work.

KOPPEL: Senior U.S. officials say the elements of a possible deal are under active discussion. If North Korea ends its nuclear program, the U.S. could issue a declaration assuring the North it won't attack. The U.S. could also provide additional aid to boost the North's supply of fuel and electricity and the U.S. could agree to renew talks on improving diplomatic relations.

(END VIDEOTAPE)

KOPPEL: But already the crisis has further strained diplomatic relations between the U.S. and South Korea, close allies who strongly disagree over what could become a key sticking point in any potential deal, Wolf, and that is how to supply the North with an acceptable form of energy -- Wolf.

BLITZER: Andrea Koppel at the State Department thanks very much.

In London, meanwhile, a possible breakthrough in the war against terror, six terror suspects are now under arrest. They were taken into custody after police found Ricin, one of the world's deadliest poisons in a residence. Our Senior International Correspondent Nic Robertson is covering this story live from London. He's joining me now -- Nic.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Wolf, that toxin Ricin made from the castor bean, according to experts we've talked to, it can be made relatively easily. Not only is it one of the most deadly toxins, there is no known cure for it at this time and that is just one of the reasons why authorities here are taking this discovery so seriously.

(BEGIN VIDEOTAPE) ROBERTSON (voice-over): Police keep watch outside a North London house where the deadly toxin Ricin was discovered during a raid early Sunday. Acting on an intelligence tip, anti-terrorist police led the pre-dawn raids here and in East London arresting six North African men who are still being questioned. Local residents say police wore protective clothing.

UNIDENTIFIED MALE: They were just dressed like if they were going to space really. Yes, they had masks and space kind of suits on.

ROBERTSON: British police, intelligence services, and health officials are combining forces to combat the potential threat posed by this discovery. Medical professionals are being briefed in an effort to ally public concerns and some officials played down the threat.

PAT TROOP, DEPARTMENT OF HEALTH: It appears that they found a very small amount and it looks like a very low tech small production, so we're working on the basis at the moment that if there is any material, and we don't know if there is any other material, that it's likely to be a very small amount.

ROBERTSON: According to experts, Ricin is difficult to produce in large quantities and very difficult to disperse. It was used successfully in Britain in a 1978 assassination of a journalist.

GARTH WHITLY, FMR. U.N. WEAPONS INSP.: It can be ingested. It can be injected. There is talk of it having been produced in aerosol form but it is the delivery that would make a problem to any potential terrorist use.

ROBERTSON: International intelligence agencies have been warning their coalition partners, including Britain, of the possibility of chemical or biological attacks on their subway systems.

ROBERTSON (on camera): So, despite the limitations of the toxin, authorities here are taking the discovery very seriously. Police are urging members of the public to be particularly vigilant.

Nic Robertson CNN, London.

(END VIDEOTAPE)

ROBERTSON: Wolf, indeed British Prime Minister Tony Blair speaking within an hour of the announcement this afternoon, made a very similar warning saying that the threat was very real and it should be taken seriously at this time -- Wolf.

BLITZER: Nic Robertson in London. Thanks, Nic very much.

It's the economy but will the president's plan get it moving again? Find out what it would mean for your financial future, a closer look at money matters for the nation.

Also, the dirt on Martha Stewart will the queen of clean just shake her legal troubles or are there big troubles ahead in the coming days?

And, a soap star with a serious drug habit, should Michael Nader get disability protection for his drug habit? More on that multimillion dollar lawsuit.

But first today's "News Quiz." Which show is the longest running soap opera in television history, "The Young and the Restless," "Guiding Light," "Days of Our Lives," "All My Children"? The answer coming up.

(COMMERCIAL BREAK)

BLITZER: Saying a bold plan is urgent to stimulate the economy the president today called for a ten year $674 billion tax cut. Our White House Correspondent Dana Bash is standing by with details -- Dana.

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Wolf, the White House says the average American will get $1,000 tax cut with this plan and they say it will create 2.1 million new jobs.

(BEGIN VIDEOTAPE)

BASH (voice-over): The president headed to the middle of the country to unveil an economic plan he says will help Middle America.

BUSH: We will not rest until every business has a chance to grow and every person who wants to find work can find a job.

BASH: Mr. Bush said the economy is improving but, as he heads towards reelection, the president wants Americans to know he's doing what he can to give it a boost.

The cost of his proposal is now estimated at $674 billion over ten years, eliminating the dividend income tax, the centerpiece of his plan, makes up roughly half the cost at $364 billion. Accelerating tax cuts passed in 2001 but not set to kick in until 2004 and 2006 will cost $64 billion.

BUSH: If tax relief is good enough for Americans three years from now, it is good enough for Americans today.

BASH: But even Democrats who helped Mr. Bush pass those tax cuts are skeptical of his new plan.

SEN. JOHN BREAUX (D), LOUISIANA: Well, cutting taxes is always good politics. The question is can we also do it in a way that's also good public policy?

BASH: Answering criticism Mr. Bush helps the wealthy, the plan also calls for accelerating the Child Tax Credit at a cost of $91 billion, accelerating the so-called Marriage Penalty for about $58 billion, and other tax relief for businesses and individuals adding up to $93 billion all over ten years.

BUSH: We must be more creative when we help those who have the hardest time finding work.

BASH: With the jobless rate at its highest level in six months, the Bush plan gives $3.6 billion to states for new reemployment accounts, which would pay for things like job training, childcare, and transportation for the unemployed.

(END VIDEOTAPE)

BASH: And, Wolf now comes the tough part. The president and his aides have to sell the plan. His new economic advisor Stephen Friedman heads to Wall Street to speak to folks there tomorrow, and then on Friday the vice president will speak and, of course then there's Congress, big sales job there especially in the Senate where you need 60 votes to pass anything. That means he'll need about a dozen Democrats to get this passed and that's not going to be easy -- Wolf.

BLITZER: We'll see if they can do it. Dana Bash at the White House, Dana thanks very much.

And you don't need a CPA to figure out how much you'd save with the president's plan. We already did some of the math for you, so sit back and watch what happens to the bottom line.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Take the median American family. It earns $66,000 a year. Bushonomics (ph) if passed by Congress begins with giving this family an immediate tax break of $100. There's an additional break that comes with the lowering of tax brackets but this median family doesn't make enough money to qualify for that break.

Now to the kids, the median family has two with Bushonomics boosting the Child Tax Credit by another $800. Also under the president's plan, no more marriage penalty tax, the relief gets this family an additional $233. Add up the money and the savings for this family $1,133.00 in the new tax year. The family sees this money in their paychecks as soon as Congress signs off on the plan.

(END VIDEOTAPE)

BLITZER: But is the picture as rosy for the poor and is it perhaps even rosier for the rich? Let's turn to our CNN analyst, "Fortune" magazine editor-at-large Andy Serwer. He's joining us now live from New York. Andy, I've got some graphics. I want to go through all the specifics of the president's plan, at least some of them.

ANDY SERWER, "FORTUNE" MAGAZINE: Yes.

BLITZER: And the Democratic alternative plan, you tell me who's going to benefit the most. Let's go through these as we can. First of all, the Bush economic plan $670 billion over ten years. Who benefits, upper income, middle income, or lower income?

SERWER: Well, I think that there's no question, upper income benefits. I think both the Republicans and the Democrats would agree. The Republicans, of course, say that the lower income taxpayers would benefit as well and that's very unclear because only 15 percent of all Americans own stock directly. That means that 85 percent don't. They would not benefit and, of course, those would be lower income people.

However, 50 percent of all American households have stock in 401- Ks. They would benefit because companies would pay more in dividends, that way they would see more money in their 401-K. It's kind of an indirect benefit but I think it is a legitimate benefit nonetheless.

BLITZER: All right, well let's talk about that, upper income then benefits the most you're saying from this nearly $700 billion economic stimulus package over ten years. You hinted at the second element of the plan, the elimination of the stock dividend tax. Who would benefit the most from that?

SERWER: Well, again, I think that you couldn't disagree that the wealthy would benefit from that but increasingly Americans are participating in the stock market and I think that they will actually be increasingly looking towards the stock market, all Americans as they see that the chances to get tax-free income come into play. So, it could be that lower income people would benefit but I don't think they'll benefit as much as the Republicans indicate, at least initially.

BLITZER: So let's say upper and middle income types would benefit the most from that one. What about the increase on the Child Tax Credit?

SERWER: Now, I think there is something that all Americans could benefit from and actually if lower income families have more children than upper income families do and I think that statistics show that to be the case oftentimes, then lower income families would actually benefit more than higher income families there.

BLITZER: All right, so everyone benefits on that.

SERWER: Yes.

BLITZER: All right let's move to the next graphic.

SERWER: Right.

BLITZER: We have a graphic on the Democratic economic plan, one year as opposed to ten year, cost of $136 billion, who benefits the most?

SERWER: Well, you get a big bang there right away, Wolf, and I think everyone gets that. You know the question here is will it help the economy in the long run? The real game here is to create sustainable job gains. I'm not sure you do that with a one punch there but that's kind of an across-the-board one I think.

BLITZER: All right, so we'll say everyone on that one. What about the $300 tax rebate? SERWER: Well, rebates again disproportionately would benefit lower income families because after that money means more to a lower income family than an upper income family. The question is what do you do with that money? Higher income people tend to save those types of checks, where lower income people tend to go out and spend, but again disproportionate benefit probably to lower income families.

BLITZER: All right, we'll put an L there; and the $31 billion that the Democrats propose handing over to the states?

SERWER: Well that's very interesting. You see here the states would seem to benefit more from the Democratic plan than the Republican plan, I think. That's my reading, maybe not a surprise because the Democrats are stronger in the state houses. I think that benefits lower income families and middle income families perhaps a little bit more than upper income families. The states tend to parcel that money out that way maybe more effectively.

BLITZER: All right, well we'll leave that one a little bit of a question mark. Andy Serwer, as usual, thanks very much for all that useful information. We'll be talking again obviously, appreciate it very much.

SERWER: Sure, Wolf.

BLITZER: Here's your chance to weigh in on this story. Our "Web Question of the Day" is this: what impact would the Bush plan have on the economy, help, hurt, or no impact? We'll have the results later in this broadcast.

Vote at cnn.com/wolf. While you're there, I'd like to hear from you. Send me your comments. I'll try to read some of them on the air each day at the end of this program. That's also, of course, where you can read my daily online column, cnn.com/wolf.

A national alert and then a major retraction, why was the FBI so quick to warn the nation about a threat that apparently didn't exist? A closer look when we come back?

Plus, from fame to misfortune, find out why this former soap star is suing ABC over his drug addiction.

And how one woman lost a finger after a brief encounter with the police; but first, a look at some news making "Headlines Around the World."

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Venezuelan dissidents marched on the offices of the Federal Tax Agency. They're urging citizens to stop paying taxes in a bid to force the ouster of President Hugo Chavez.

Grim memories. Cambodia is marking the 24th anniversary of the fall of the Khymer Rouge. The regime is blamed for an estimate 1.7 million deaths. Cambodian and U.N. negotiators are holding talks this week on the possibility of setting up a war crimes tribunal. Going for the gold. An alleged Russian mobster has been ordered to be extradited to the United States. He's accused of fixing the competition at last year's Salt Lake City Olympics to get a gold medal awarded to a Russian figure skating team.

Return of the Turners. Britain's Tate Gallery has recovered two 19th century masterpieces stolen eight years ago. The paintings are shade and darkness and a companion piece, light and color. Both were painted by 19th century impressionist, J.M.W. Turner.

Orthodox Christmas. Although much of the world celebrated Christmas two weeks ago, today is Christmas Eve for many Eastern Orthodox Christians. Among the sites of major observances, Bethlehem, Istanbul and Moscow.

Shock opera. Much to the dismay of high culture purists, they're holding auditions in Britain for an opera based on Jerry Springer's TV show. Some say the program's lurid subject matter is better suited to the Grand Ole Opry than opera. But in view of the fistfights on the TV show, the Jerry Springer Opera may have a ready-made slogan, "It's Not Over Until The Fat Lady Swings." And that's our look around the world.

(COMMERCIAL BREAK)

BLITZER: Welcome back to CNN. I'm Wolf Blitzer. Coming up, the legal cloud hanging over Martha Stewart. Are darker days ahead? We'll have the latest.

(NEWSBREAK)

BLITZER: The FBI is calling off a nationwide search for five men it said may have slipped into the country illegally. The agency now says an informant's tip was bogus. CNN justice correspondent, Kelli Arena, is following the story.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): Their pictures were plastered worldwide, on television, on the Internet, a holiday terror scare, even the president got involved.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: And if anybody has any information about the five, I would hope they would contact their local authorities.

ARENA: But it turns out it was all a false alarm. The FBI has called off the manhunt. The informant who gave the tip apparently lied. It's now believed he was hoping to strike a deal with prosecutors. Sources say even though there were some doubts from the start, the tip coincided with separate intelligence about a possible terror threat around the New Year's holiday. FBI supporters say it's a case of damned if you do, damned if you don't.

STEVE POMFRANTZ, FORMER FBI AGENT: I think the worst possible thing that could happen now for the credibility of not only the FBI but the government as well is for something to happen and it would later be revealed that the government had some information and didn't either act on it or make it public.

ARENA: Information about the five came from an alleged forger who was in Canadian custody, Michael Hamdani, who also faces charges in the United States.

DEEPAK PARADKAR, HAMDANI'S ATTORNEY: Mr. Hamdani, as I said previously, had cooperated with authorities.

ARENA: An FBI investigation into a Pakistani human smuggling ring led to Hamdani. FBI officials say he claimed he sold the five fake documents. They were traveling together and were anxious to get to the United States by December 24. But problems surfaced last week when a jeweler in Pakistan said his photo was among the five and that he'd never been to the U.S. Still, the manhunt continued leading some to question how the public will react to the next alert.

LAWRENCE GOLDMAN, CRIMINAL DEFENSE ATTORNEY: When they come up again, people are not going to take them as seriously. People are not going to pay as much attention. And people are going to hear it and say, "Another wild goose chase."

(END VIDEOTAPE)

ARENA: FBI officials say that they do understand that risk but insist they that would react in the very same way given similar circumstances -- Wolf.

BLITZER: As you say, damned if you do, damned if you don't. I don't know what you do in a situation like this. Kelli Arena, thanks very much for buttoning up this story, which a lot of us, of course, were watching very closely over the past couple of weeks.

And it's been on simmer for a while, but the case against Martha Stewart soon may be coming to a boil. A source tells CNN prosecutors want another interview with the broker's assistant, who's agreed to testify about Stewart's alleged insider training. CNNfn's Allan Chernoff is joining us now live from New York with details -- Allan.

ALLAN CHERNOFF, CCNfn CORRESPONDENT: Thank you, Wolf. It may be getting hot in the kitchen for Martha Stewart. We've learned that prosecutors have asked the assistant to Martha Stewart's stockbroker to return for additional questioning. A date has yet to be set, but this does indicate the U.S. attorney's office here is continuing to pursue Miss Stewart on possible insider trading charges.

Now, you'll recall Martha Stewart did unload her shares of ImClone just before the company's experimental cancer drug got a thumbs down from the Food and Drug Administration. The brokerage assistant, Doug Faneuil, pled guilty in October to a misdemeanor admitting that he did share inside information with Miss Stewart and he agreed to cooperate with prosecutors. Miss Stewart has said she did nothing improper. And today, her spokesperson refused comment.

The former chief executive of ImClone, a friend of Miss Stewart's, is facing sentencing March 17 after pleading guilty to securities fraud. Now, another worry for Miss Stewart, Chrysler is planning to drop its ad deal with Martha Stewart's company when it expires in March. The Chrysler marketing executive says the auto company is getting out of the deal -- quote -- "as fast as possible," although he denies the insider trading investigation is the cause.

In spite of the investigation, Martha Stewart Living Omni Media yesterday introduced a brand new magazine, "Every Day Food." The magazine features food with flare, easy recipes that take less than half an hour to prepare. Martha Stewart's name is not prominently displayed on the cover. Analysts say that is part of the company's new strategy; keep selling household tips without a hard sell of Martha Stewart -- Wolf.

BLITZER: On this magazine, Allan, how important is the magazine to the company, though, the new magazine?

CHERNOFF: It's pretty significant. They are rolling it out in a big way. Three-quarters of a million magazines being sent out, subscription and also at supermarkets and newsstands. That compares to 2.3 million, the distribution of "Martha Stewart Living" magazine. So, they are betting quite a bit of this new publication.

BLITZER: Allan Chernoff with the latest on the Martha Stewart story. Thanks, Allan, very much.

Let's move on to a shocking story right now. Detroit's police department is investigating one of its own, an officer who cut off the tip of a woman's finger while he was trying to handcuff her. Sandra Ali of our CNN affiliate, WJBK, has more on this unusual case.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: It was like something out of a horror movie.

SANDRA ALI, WJBK CORRESPONDENT (voice-over): She has a hard cast on her hand and only four fingers left. Forty-five-year-old Joanie Gullas (ph) says she still can't believe what happened to her over the weekend. Early Sunday morning, Gullas, sitting in her Astro van waiting for friends in this parking lot near the Huddle Lounge. She says a cop in plain clothes approached her for I.D. She allegedly asked to see his badge. That's when Gullas says the officer punched her.

UNIDENTIFIED FEMALE: He just clocked me.

ALI (on camera): In the face?

UNIDENTIFIED FEMALE: Right in the face. And then, I just looked down and saw my handful of blood. And before I could think of anything, he dragging me out of the car and threw me on the ground.

ALI (voice-over): On the ground, Gullas says the cop used a knife to cut her sleeve then her hand before cuffing both of them behind the back. Minutes later, two officers in uniform pulled up in squad cars. They called an ambulance to whisk her away. That's when she first realized two of her fingers were severed. Regardless of how much medication she takes, she says the pain is unbearable.

UNIDENTIFIED FEMALE: No matter you touch, it hurts, you know. And then it just multiples by a hundred because it's just -- I can't -- it -- you know, it feels like someone just -- the whole time just pulling something. I can feel it right where it's cut off.

(END VIDEOTAPE)

BLITZER: That report from our affiliate reporter, WJBK's Sandra Ali in Detroit. This afternoon Detroit police officials said the officer was one of three taking part in an undercover armed robbery detail. They say two investigations are now under way.

(BEGIN VIDEO CLIP)

CHIEF JERRY OLIVER, DETROIT POLICE: The Professional Accountability Bureau has submitted a warrant to the Wayne County prosecutor's office and we're also conducting a parallel administrative review investigation that will go into whether or not department policies and procedures were violated and we'll also recommend the appropriate discipline.

(END VIDEO CLIP)

BLITZER: We'll keep you updated on what eventually happens in these investigations. When we come back, a famous soap star out of a job. Now, Michael Nader wants his habit to be treated as a disability. And he wants ABC to pay for it. The straight dope when we come back.

(COMMERCIAL BREAK)

BLITZER: Earlier we asked: which show is the longest running soap opera in television history. The answer, "Guiding Light." The show made its television debut 51 years ago. It started as a radio program in 1937.

A former soap opera star was flying high until he was busted on drug charges. Two years after his downfall, he's fighting back, suing his former employer for millions of dollars.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): You may know Michael Nader as Count Dimitri Marick on ABC's daytime soap opera, "All My Children." Nader hopes you'll see him again in that role, but you may not.

NADER: I was mortified by, you know, what took place to me.

BLITZER: Nader is suing ABC for more than $31 million trying to recover unpaid wages and other damages. He was arrested on cocaine possession charges nearly two years ago. He says ABC told him he could have his job back if he successfully completed drug treatment and he says he's done that. NADER: I want my life back. I went away. I did my recovery. I came back. I enrolled in an outpatient program for another year at Hazelton, New York. So I was ready to go back to my craft and go back to work.

BLITZER: ABC still decided not to have Nader back on "All My Children", even after he underwent that drug treatment. We contacted ABC and a spokesman said the network would not comment on pending litigation. Complicating that litigation, Nader is using the Americans With Disabilities Act to bolster his case against ABC and the show.

JOSEPH RANKI, NADER'S ATTORNEY: People can't misrepresent to the disabled or people who are protected by law that they're going to follow the law, they're going to follow the contracts and then go a different way and discriminate against that person because of the disability.

BLITZER: But it's far from clear whether Michael Nader is protected under the Americans With Disabilities Act.

(END VIDEOTAPE)

BLITZER: Joining us now from New York to talk a little more about this case, our legal analyst, Jeffrey Toobin.

It sounds absurd but is he, in fact -- does he have any legal basis to claim that under the Americans With Disabilities Act he has a lawsuit there?

JEFFREY TOOBIN, CNN LEGAL ANALYST: Well, one thing that is clear under the Americans With Disabilities Act is that drug addiction -- addiction is a disability.

And there have been people who have sued successfully on the grounds that they were discriminated against because they had drug addiction. That is not to say that he will win his case. There are lots of other obstacles. But drug addiction is considered a disability under the act.

BLITZER: So if you were a lawyer representing ABC, you would have to take this lawsuit very seriously?

TOOBIN: You certainly would. But there's certainly a lot of ways that he could still lose. One of the ways is the act says you can't be considered disabled if you are currently still using drugs. And remember he was arrested in 1991. He could be fired on the grounds of being arrested. That is not protected under the American Disabilities Act.

If he didn't follow the program that was prescribed for him for his recovery, he could also be fired for that. If he didn't do his job -- if he didn't do his acting job properly, he could be fired for that. So there are lots of possible defenses. But it is true that people who are addicted can sue under the act. BLITZER: Because to the average viewer out there, including myself, I assume that if somebody is convicted of using cocaine, an illegal drug, that's a firable offense in and of itself.

TOOBIN: That -- certainly, that is a firable offense. But I think what the act is really talking about is if you know anyone who has been through a 12-step program, they always talk about that they are addicted even years later after they haven't used drugs for years.

So if you were to fire someone on the grounds of being a drug addict who hadn't used drugs in 10 years, you know, maybe that is a suit that the court should support. And that's how the act is drafted and that's what it's meant to protect. But using drugs and getting fired, that can still get you fired.

BLITZER: All right. Jeffrey Toobin with a little analysis on what must be an unusual lawsuit but maybe not all that unusual after all. Appreciate it very much.

TOOBIN: OK, Wolf.

BLITZER: Thank you. And dangerous radical or American icon? A rare glimpse at Malcolm X in his own words. That's still to come. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Almost four decades after his murder, the world is about to get the most in-depth look even at the mind of the controversial Black Nationalist leader, Malcolm X. CNN's Jamie Colby explains.

(BEGIN VIDEOTAPE)

JAMIE COLBY, CNN CORRESPONDENT (voice-over): Thousands of personal papers once belonging to Malcolm X have been deposited by his family with the New York Public Library. The Schomberg Center in Harlem, where he once preached, will spend the next 18 months archiving what it calls the most comprehensive and personal look at the controversial civil rights leader.

HOWARD DODSON, DIRECTOR, SCHOMBERG CENTER: That's what shows up in this collection over and over again, his constant search for clarity for himself and for the public that he was going to be presented to.

COLBY: Two of Malcolm X's daughters, Atallah and Malaak Shabazz called their gift a celebration, particularly for researchers who have not had so many of his diaries, letters, and speeches in one place.

ATALLAH SHABAZZ, MALCOLM X'S DAUGHTER: Anything that is significant, I'm real proud to share. I love who my father is. I'm proud of who my father is. I can't wait to fill in the blanks.

COLBY (on camera): We're told that the documents reviewed so far are in relatively good condition considering most of them are 40 years old. But anyone who handles any of the documents in these two crates will literally have to wear kid gloves to preserve their condition.

But what they'll see for the very first time is the evolution of some of Malcolm's talks. Take, for example, this speech delivered in 1963, initially entitled "God's Judgment of America," later changed to "God's Judgment of White America."

(voice-over): The 700-pounds of material also contains photographs of Malcolm X with his wife, Betty Shabazz, and with famous people -- Mohammed Ali, Fidel Castro and dignitaries he met around the world.

Much of this collection was slatted for the auction block earlier this year, but the family stopped that sale from happening.

MALAAK SHABAZZ, MALCOLM X'S DAUGHTER: It was devastating enough to lose our parent the way we did. But the larger tragedy was the potential of losing my parents' legacy and having it dispersed.

COLBY: The library will hold the material for at least 75 years, but the Shabazz family will retain ownership.

A. SHABAZZ: He's an icon in his absence, but he was a man in presence, ever evolving, always growing.

COLBY: Plans are to someday sure with the general public the collection and the spirit of who their father really was.

Jamie Colby, CNN, New York.

(END VIDEOTAPE)

BLITZER: Time's running out for your turn to way in on our "Web Question of The Day." What impact would the Bush plan have on the economy, help, hurt or no impact? Log onto cnn.com/wolf. That's where you can vote and we'll have the results immediately when we come back.

(COMMERCIAL BREAK)

BLITZER: Here's how you're weighing in on our "Web Question of The Day." Remember, we've been asking you this question. What impact would the Bush plan have on the economy, help, hurt or no impact? Thirty-five percent of you said it would help. Fifty percent of you say hurt. Fifteen percent of you say no impact.

Remember, you can find the exact vote tally and continue to vote on our Web site, cnn.com/wolf. This is not a scientific poll.

Let's get to some of your e-mail. Jane writes this: "If Bush really wants to help people with his tax plan, why doesn't he eliminate the income tax on unemployment benefits? That would really help those who have little income."

Gary sends this note: "Stopping double taxation on dividends will benefit the corporations and the wealthy. Stopping double taxation on social security will help seniors and the middle class." Kelly has a positive view of the president's plan: "The president's economic package is a good compromise. The Democrats need to be cautious in their criticism. The president is doing the right thing for the country and the economy."

Remember, we want to hear from you. Send me your e-mail, questions, your comments to cnn.com/wolf.

That's all the time we have today. Please join me again tomorrow, 5:00 p.m. Eastern. Don't forget, "SHOWDOWN IRAQ." That's weekdays at noon Eastern. Until then, thanks very much for watching. I'm Wolf Blitzer in Washington. "LOU DOBBS MONEYLINE" is, of course, coming up.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com





Deadly Toxin Found in London Home of African Immigrants>


Aired January 7, 2003 - 17:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEOTAPE)
WOLF BLITZER, CNN ANCHOR (voice-over): The economy again.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: By speeding up the income tax cuts we will speed up economic recovery and the pace of job creation.

BLITZER: Will it make a difference?

London on alert. Anti-terror police find one of the world's deadliest toxins.

TONY BLAIR, BRITISH PRIME MINISTER: This danger is present and real and with us now and its potential is huge.

BLITZER: North Korea warns of war.

MOHAMED ELBARADEI, IAEA: They like to escalate any situation into a crisis situation to get attention.

BLITZER: Are they bluffing?

Airborne but will they find anything? I'll ask former weapons inspector Scott Ritter.

Fanned by ferocious winds, a wildfire threatens a California community know for its rich and famous.

Is drug addiction a disability? A soap opera star sues to get his job back.

MICHAEL NADER, ACTOR: Just basically said we do not want you on the show and we never want you back on the show.

BLITZER: And he was a fiery advocate of Black freedom and pride. Now, a side to Malcolm X you haven't seen before.

UNIDENTIFIED MALE: This is his record of his thoughts. This is what he has written.

(END VIDEOTAPE)

BLITZER: It's Tuesday, January 07, 2003. I'm Wolf Blitzer in Washington. We begin with more signs of a gathering storm in the Persian Gulf as the United States builds up its forces. We get the story from CNN's Senior Pentagon Correspondent Jamie McIntyre. He's joining me now live -- Jamie.

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: Well, Wolf, as you well know, you were in Qatar last month as the U.S. military's top commanders were practicing how they would run a war against Iraq. Now, CNN is told that later this week some of them will start to go back potentially for the real thing.

(BEGIN VIDEO CLIP)

MCINTYRE (voice-over): Pentagon sources say the first of more than 1,000 U.S. war planners and battle commanders will begin to move this week back to a special commander center in Qatar specially outfitted to serve as headquarters for any U.S. led war against Iraq.

The battle staff includes virtually all of the top command staff that move from the U.S. Central Command in Tampa, Florida in December for Internal Look, an exercise that simulated running a war against Iraq. While the order clearly moves the U.S. closer to war with Iraq, the Pentagon insists President Bush has not yet made that decision.

DONALD RUMSFELD, DEFENSE SECRETARY: It clearly is not inevitable. The first choice would be that Saddam Hussein would pick up and leave the country tonight. That would be nice for everybody, or he'd decide suddenly to turn over a new leaf and cooperate with the U.N. and discourage of his capabilities.

(END VIDEO CLIP)

MCINTYRE: Well, tens of thousands of troops are on the move from the United States and Great Britain as this buildup continues and Pentagon sources say that by the end of this month the number of allied troops, U.S. and British, would number well over 100,000.

Again, the Pentagon insists President Bush hasn't made any decision, but today Secretary Rumsfeld again indicated that Saddam Hussein has not complied with the demands to disarm and President Bush was talking tough as ever.

(BEGIN VIDEO CLIP)

BUSH: The world's demands are clear for the sake of peace Saddam Hussein must disarm himself of all weapons of mass destruction and prove that he has done so. Should he choose the other course, in the name of peace the United States will lead a coalition of the willing to disarm the Iraqi regime of weapons of mass destruction and free the Iraqi people.

(END VIDEO CLIP)

MCINTYRE: And, Wolf, one more sign that the war plan is coming together, you know in the U.S. Central Command headquarters at Tampa, there are trailers out back with the flags of the 43 nations that are coordinating with the United States. A 44th flag will soon be flying there. We've learned that a military representative from Saudi Arabia has come to Tampa, Florida indicating that Saudi Arabia is now playing a more, a closer role in the U.S. in coordinating potential military action -- Wolf.

BLITZER: And finally, Jamie, you say that the U.S. is moving the headquarters staff in effect over to Qatar. What about the commander of the Central Command General Tommy Franks?

MCINTYRE: Well, he doesn't have to go until the very last minute and Franks is not going right away. He'll stay in Washington for more meetings with the Bush administration top officials. Then he's going to move over to the region for a last round of consultation with allies in the region and as a very last move he'll end up at that headquarters in Qatar. When that happens, watch out. War could be very close.

BLITZER: All right, Jamie McIntyre with important news from the Pentagon, Jamie thanks very much.

Britain today joined the United States in putting more pressure on Iraq. A naval task force and 3,000 Royal Marines were ordered to the Persian Gulf and 1,500 reserves were mobilized for a possible war. The Prime Minister Tony Blair, President Bush's staunchest supporter on Iraq, said if the will of the U.N. is breached then the will should be enforced.

Meantime, the French President Jacques Chirac, who has not embraced President Bush's tough stance toward Iraq, told French troops to be ready for "anything" in the period ahead.

U.N. inspectors took to the air today in their hunt for Iraqi weapons. For the first time since the inspections resumed they used helicopters to visit suspect sites, including a uranium mine. The head of the International Atomic Energy Agency, Mohamed ElBaradei said today that so far there's no "smoking gun," but the Defense Secretary Donald Rumsfeld suggests he needs no further proof.

(BEGIN VIDEO CLIP)

RUMSFELD: The Central Intelligence Agency has said what it has said and there's no doubt in my mind but that they currently have chemical and biological weapons.

(END VIDEO CLIP)

BLITZER: Joining me now from Albany, New York, the former weapons inspector Scott Ritter, once accused by Iraq of spying. He resigned four years ago saying the United States was too easy on Saddam Hussein. Now he takes a different view. Scott Ritter thanks very much for joining us as usual. As you take a look at these latest maneuverings going on, it looks like the war is virtually certain. I don't know if you have a different assessment.

SCOTT RITTER, FMR. U.N. WEAPONS INSPECTOR: No, it appears that the United States is fully committed towards military confrontation with Iraq. I do need to correct you on one thing. I never said the United States was too easy on Iraq. I said that the Security Council wasn't enforcing its law to disarm Iraq. Clearly, we have a situation today where weapons inspectors are back on the ground.

The council is speaking with a single voice to support the inspectors and it's the United States that's out of step with international law once again, seeking war when in fact there is no cause for war. The inspectors have said there is no smoking gun. There is no proof and Donald Rumsfeld, with all due respect to him, hasn't put any proof on the table to back up his allegations that Iraq has chemical and biological weapons.

BLITZER: Do you accept the notion, Scott that the Pentagon is fearful of putting too much intelligence out there in public in case there is a war that could endanger U.S. troops by letting the Iraqis know what the United States in effect knows?

RITTER: That's absurd. If the Iraqis have chemical and biological weapons they would use them against any invading force whether we broadcast that or not. I think it's imperative that if we're going to war against Iraq that we build as solid a coalition as possible, one that is well founded in international law and this means that we have to go through the Security Council.

Therefore, it is incumbent on us to put this proof on the table to demonstrate to the American people and the world that Iraq is, in fact, in breach of its obligations to disarm. All we have right now is rhetorically laced speculation and that's not flying not only abroad but here at home. You're seeing increasing concern that we just don't have the goods on Iraq to justify war.

BLITZER: What about the whole notion of the airborne, the helicopters being used now for the first time? Are they likely to find something that U.N. inspectors on the ground can't find?

RITTER: No, I mean the helicopters are useful from a logistical standpoint to transport inspectors rapidly from Point A to Point B, but again and also the helicopters could be used to mount some detection equipment, chemical detection equipment, gamma ray detection equipment, ground penetrating radar, and things of this nature.

But, the bottom line it's the inspector on the ground, the eyeballs on the ground. It's what the inspectors find when they physically arrive at a facility, the kind of sampling they take, the discussions they have with their Iraqi counterparts that will, you know, determine, you know, whether or not Iraq is in compliance. The helicopters are just a tool. We used helicopters extensively from 1991 to 1998. They enhanced our operations but they were not the core of our inspection effort.

BLITZER: One final question before I let you go. Saddam Hussein yesterday accused those U.N. inspectors of being spies. You've accused some of the inspectors in previous inspection teams of engaging in espionage, spying. Do you think that is still going on now? Do you believe that to be going on? RITTER: Well, I didn't accuse inspectors. I accused the United States of using the weapons inspection process for purposes other than that mandated by the council. That means that the United States didn't use the inspections to gain access to information about disarming Iraq, but rather about the security of Saddam Hussein, and as long as the United States maintains a policy, as the Bush administration currently does, of regime removal, it will use all the means necessary to gather the information necessary to take out Saddam Hussein.

And right now, the inspectors are the only players on the ground gaining access to the most sensitive sites inside Iraq, so there is no doubt in my mind that the Bush administration is using the weapons inspection process for purposes other than disarmament.

They're going after Saddam and it's a travesty because the inspectors are doing a good job. They're getting full cooperation from the Iraqis and to have the integrity of their operation polluted by an American policy that runs counter to international law is a shame.

BLITZER: Scott Ritter speaking forcefully as he always does. Scott thanks very much for joining us.

This footnote to this story involving Iraq, a very influential U.S. Congressman introduced a bill today to revive the military draft. The New York Democrat Charlie Rangel says he wants to jolt Americans into realizing the consequences of a possible strike against Iraq which he opposes.

(BEGIN VIDEO CLIP)

REP. CHARLES RANGEL (D), NEW YORK: I truly believe that those who make the decision and those who support the United States going into war would feel more regularly the pain that's involved, the sacrifice that's involved if they thought that the fighting force would include the affluent and those who historically have avoided this great responsibility.

(END VIDEO CLIP)

BLITZER: Both the defense secretary and the chairman of the joint chiefs earlier today rejected Rangel's proposal saying there's no need to revive the draft, which of course was in place from 1948 to 1973 when the United States switched to an all volunteer military.

Rangel is a decorated Korean War veteran. He's calling for the compulsory military or national service for men and women ages 18 to 26. The Bush administration continues to insist, as I said, that there is absolutely no need for a draft, at least not now.

Tough talk today also on another world hot spot, North Korea, which has moved to reactivate its nuclear program, warned that any form of economic sanctions would amount to an act of war, adding that the United States would pay a very high price in such an event. But after talks with the allies, South Korea and Japan, the United States has moved to cool things down a little bit. We get the story now from our State Department Correspondent Andrea Koppel.

(BEGIN VIDEOTAPE)

ANDREA KOPPEL, CNN STATE DEPARTMENT CORRESPONDENT (voice-over): A show of unity between the U.S., Japan, and South Korea, and in the midst of a nuclear standoff with North Korea an unexpected offer by the U.S. to talk.

RICHARD BOUCHER, STATE DEPT. SPOKESMAN: We're not going to provide any quid pro quos for North Korea to live up to its existing obligations but North Korea needs to make clear that it will live up to its obligations, that it will undo the steps, that it will end these nuclear programs.

KOPPEL: But a senior administration source tells CNN back channel talks between these two rivals have, in fact, been ongoing for weeks.

BUSH: I believe that by working with countries in the region diplomacy will work.

KOPPEL: Senior U.S. officials say the elements of a possible deal are under active discussion. If North Korea ends its nuclear program, the U.S. could issue a declaration assuring the North it won't attack. The U.S. could also provide additional aid to boost the North's supply of fuel and electricity and the U.S. could agree to renew talks on improving diplomatic relations.

(END VIDEOTAPE)

KOPPEL: But already the crisis has further strained diplomatic relations between the U.S. and South Korea, close allies who strongly disagree over what could become a key sticking point in any potential deal, Wolf, and that is how to supply the North with an acceptable form of energy -- Wolf.

BLITZER: Andrea Koppel at the State Department thanks very much.

In London, meanwhile, a possible breakthrough in the war against terror, six terror suspects are now under arrest. They were taken into custody after police found Ricin, one of the world's deadliest poisons in a residence. Our Senior International Correspondent Nic Robertson is covering this story live from London. He's joining me now -- Nic.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Wolf, that toxin Ricin made from the castor bean, according to experts we've talked to, it can be made relatively easily. Not only is it one of the most deadly toxins, there is no known cure for it at this time and that is just one of the reasons why authorities here are taking this discovery so seriously.

(BEGIN VIDEOTAPE) ROBERTSON (voice-over): Police keep watch outside a North London house where the deadly toxin Ricin was discovered during a raid early Sunday. Acting on an intelligence tip, anti-terrorist police led the pre-dawn raids here and in East London arresting six North African men who are still being questioned. Local residents say police wore protective clothing.

UNIDENTIFIED MALE: They were just dressed like if they were going to space really. Yes, they had masks and space kind of suits on.

ROBERTSON: British police, intelligence services, and health officials are combining forces to combat the potential threat posed by this discovery. Medical professionals are being briefed in an effort to ally public concerns and some officials played down the threat.

PAT TROOP, DEPARTMENT OF HEALTH: It appears that they found a very small amount and it looks like a very low tech small production, so we're working on the basis at the moment that if there is any material, and we don't know if there is any other material, that it's likely to be a very small amount.

ROBERTSON: According to experts, Ricin is difficult to produce in large quantities and very difficult to disperse. It was used successfully in Britain in a 1978 assassination of a journalist.

GARTH WHITLY, FMR. U.N. WEAPONS INSP.: It can be ingested. It can be injected. There is talk of it having been produced in aerosol form but it is the delivery that would make a problem to any potential terrorist use.

ROBERTSON: International intelligence agencies have been warning their coalition partners, including Britain, of the possibility of chemical or biological attacks on their subway systems.

ROBERTSON (on camera): So, despite the limitations of the toxin, authorities here are taking the discovery very seriously. Police are urging members of the public to be particularly vigilant.

Nic Robertson CNN, London.

(END VIDEOTAPE)

ROBERTSON: Wolf, indeed British Prime Minister Tony Blair speaking within an hour of the announcement this afternoon, made a very similar warning saying that the threat was very real and it should be taken seriously at this time -- Wolf.

BLITZER: Nic Robertson in London. Thanks, Nic very much.

It's the economy but will the president's plan get it moving again? Find out what it would mean for your financial future, a closer look at money matters for the nation.

Also, the dirt on Martha Stewart will the queen of clean just shake her legal troubles or are there big troubles ahead in the coming days?

And, a soap star with a serious drug habit, should Michael Nader get disability protection for his drug habit? More on that multimillion dollar lawsuit.

But first today's "News Quiz." Which show is the longest running soap opera in television history, "The Young and the Restless," "Guiding Light," "Days of Our Lives," "All My Children"? The answer coming up.

(COMMERCIAL BREAK)

BLITZER: Saying a bold plan is urgent to stimulate the economy the president today called for a ten year $674 billion tax cut. Our White House Correspondent Dana Bash is standing by with details -- Dana.

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Wolf, the White House says the average American will get $1,000 tax cut with this plan and they say it will create 2.1 million new jobs.

(BEGIN VIDEOTAPE)

BASH (voice-over): The president headed to the middle of the country to unveil an economic plan he says will help Middle America.

BUSH: We will not rest until every business has a chance to grow and every person who wants to find work can find a job.

BASH: Mr. Bush said the economy is improving but, as he heads towards reelection, the president wants Americans to know he's doing what he can to give it a boost.

The cost of his proposal is now estimated at $674 billion over ten years, eliminating the dividend income tax, the centerpiece of his plan, makes up roughly half the cost at $364 billion. Accelerating tax cuts passed in 2001 but not set to kick in until 2004 and 2006 will cost $64 billion.

BUSH: If tax relief is good enough for Americans three years from now, it is good enough for Americans today.

BASH: But even Democrats who helped Mr. Bush pass those tax cuts are skeptical of his new plan.

SEN. JOHN BREAUX (D), LOUISIANA: Well, cutting taxes is always good politics. The question is can we also do it in a way that's also good public policy?

BASH: Answering criticism Mr. Bush helps the wealthy, the plan also calls for accelerating the Child Tax Credit at a cost of $91 billion, accelerating the so-called Marriage Penalty for about $58 billion, and other tax relief for businesses and individuals adding up to $93 billion all over ten years.

BUSH: We must be more creative when we help those who have the hardest time finding work.

BASH: With the jobless rate at its highest level in six months, the Bush plan gives $3.6 billion to states for new reemployment accounts, which would pay for things like job training, childcare, and transportation for the unemployed.

(END VIDEOTAPE)

BASH: And, Wolf now comes the tough part. The president and his aides have to sell the plan. His new economic advisor Stephen Friedman heads to Wall Street to speak to folks there tomorrow, and then on Friday the vice president will speak and, of course then there's Congress, big sales job there especially in the Senate where you need 60 votes to pass anything. That means he'll need about a dozen Democrats to get this passed and that's not going to be easy -- Wolf.

BLITZER: We'll see if they can do it. Dana Bash at the White House, Dana thanks very much.

And you don't need a CPA to figure out how much you'd save with the president's plan. We already did some of the math for you, so sit back and watch what happens to the bottom line.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Take the median American family. It earns $66,000 a year. Bushonomics (ph) if passed by Congress begins with giving this family an immediate tax break of $100. There's an additional break that comes with the lowering of tax brackets but this median family doesn't make enough money to qualify for that break.

Now to the kids, the median family has two with Bushonomics boosting the Child Tax Credit by another $800. Also under the president's plan, no more marriage penalty tax, the relief gets this family an additional $233. Add up the money and the savings for this family $1,133.00 in the new tax year. The family sees this money in their paychecks as soon as Congress signs off on the plan.

(END VIDEOTAPE)

BLITZER: But is the picture as rosy for the poor and is it perhaps even rosier for the rich? Let's turn to our CNN analyst, "Fortune" magazine editor-at-large Andy Serwer. He's joining us now live from New York. Andy, I've got some graphics. I want to go through all the specifics of the president's plan, at least some of them.

ANDY SERWER, "FORTUNE" MAGAZINE: Yes.

BLITZER: And the Democratic alternative plan, you tell me who's going to benefit the most. Let's go through these as we can. First of all, the Bush economic plan $670 billion over ten years. Who benefits, upper income, middle income, or lower income?

SERWER: Well, I think that there's no question, upper income benefits. I think both the Republicans and the Democrats would agree. The Republicans, of course, say that the lower income taxpayers would benefit as well and that's very unclear because only 15 percent of all Americans own stock directly. That means that 85 percent don't. They would not benefit and, of course, those would be lower income people.

However, 50 percent of all American households have stock in 401- Ks. They would benefit because companies would pay more in dividends, that way they would see more money in their 401-K. It's kind of an indirect benefit but I think it is a legitimate benefit nonetheless.

BLITZER: All right, well let's talk about that, upper income then benefits the most you're saying from this nearly $700 billion economic stimulus package over ten years. You hinted at the second element of the plan, the elimination of the stock dividend tax. Who would benefit the most from that?

SERWER: Well, again, I think that you couldn't disagree that the wealthy would benefit from that but increasingly Americans are participating in the stock market and I think that they will actually be increasingly looking towards the stock market, all Americans as they see that the chances to get tax-free income come into play. So, it could be that lower income people would benefit but I don't think they'll benefit as much as the Republicans indicate, at least initially.

BLITZER: So let's say upper and middle income types would benefit the most from that one. What about the increase on the Child Tax Credit?

SERWER: Now, I think there is something that all Americans could benefit from and actually if lower income families have more children than upper income families do and I think that statistics show that to be the case oftentimes, then lower income families would actually benefit more than higher income families there.

BLITZER: All right, so everyone benefits on that.

SERWER: Yes.

BLITZER: All right let's move to the next graphic.

SERWER: Right.

BLITZER: We have a graphic on the Democratic economic plan, one year as opposed to ten year, cost of $136 billion, who benefits the most?

SERWER: Well, you get a big bang there right away, Wolf, and I think everyone gets that. You know the question here is will it help the economy in the long run? The real game here is to create sustainable job gains. I'm not sure you do that with a one punch there but that's kind of an across-the-board one I think.

BLITZER: All right, so we'll say everyone on that one. What about the $300 tax rebate? SERWER: Well, rebates again disproportionately would benefit lower income families because after that money means more to a lower income family than an upper income family. The question is what do you do with that money? Higher income people tend to save those types of checks, where lower income people tend to go out and spend, but again disproportionate benefit probably to lower income families.

BLITZER: All right, we'll put an L there; and the $31 billion that the Democrats propose handing over to the states?

SERWER: Well that's very interesting. You see here the states would seem to benefit more from the Democratic plan than the Republican plan, I think. That's my reading, maybe not a surprise because the Democrats are stronger in the state houses. I think that benefits lower income families and middle income families perhaps a little bit more than upper income families. The states tend to parcel that money out that way maybe more effectively.

BLITZER: All right, well we'll leave that one a little bit of a question mark. Andy Serwer, as usual, thanks very much for all that useful information. We'll be talking again obviously, appreciate it very much.

SERWER: Sure, Wolf.

BLITZER: Here's your chance to weigh in on this story. Our "Web Question of the Day" is this: what impact would the Bush plan have on the economy, help, hurt, or no impact? We'll have the results later in this broadcast.

Vote at cnn.com/wolf. While you're there, I'd like to hear from you. Send me your comments. I'll try to read some of them on the air each day at the end of this program. That's also, of course, where you can read my daily online column, cnn.com/wolf.

A national alert and then a major retraction, why was the FBI so quick to warn the nation about a threat that apparently didn't exist? A closer look when we come back?

Plus, from fame to misfortune, find out why this former soap star is suing ABC over his drug addiction.

And how one woman lost a finger after a brief encounter with the police; but first, a look at some news making "Headlines Around the World."

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Venezuelan dissidents marched on the offices of the Federal Tax Agency. They're urging citizens to stop paying taxes in a bid to force the ouster of President Hugo Chavez.

Grim memories. Cambodia is marking the 24th anniversary of the fall of the Khymer Rouge. The regime is blamed for an estimate 1.7 million deaths. Cambodian and U.N. negotiators are holding talks this week on the possibility of setting up a war crimes tribunal. Going for the gold. An alleged Russian mobster has been ordered to be extradited to the United States. He's accused of fixing the competition at last year's Salt Lake City Olympics to get a gold medal awarded to a Russian figure skating team.

Return of the Turners. Britain's Tate Gallery has recovered two 19th century masterpieces stolen eight years ago. The paintings are shade and darkness and a companion piece, light and color. Both were painted by 19th century impressionist, J.M.W. Turner.

Orthodox Christmas. Although much of the world celebrated Christmas two weeks ago, today is Christmas Eve for many Eastern Orthodox Christians. Among the sites of major observances, Bethlehem, Istanbul and Moscow.

Shock opera. Much to the dismay of high culture purists, they're holding auditions in Britain for an opera based on Jerry Springer's TV show. Some say the program's lurid subject matter is better suited to the Grand Ole Opry than opera. But in view of the fistfights on the TV show, the Jerry Springer Opera may have a ready-made slogan, "It's Not Over Until The Fat Lady Swings." And that's our look around the world.

(COMMERCIAL BREAK)

BLITZER: Welcome back to CNN. I'm Wolf Blitzer. Coming up, the legal cloud hanging over Martha Stewart. Are darker days ahead? We'll have the latest.

(NEWSBREAK)

BLITZER: The FBI is calling off a nationwide search for five men it said may have slipped into the country illegally. The agency now says an informant's tip was bogus. CNN justice correspondent, Kelli Arena, is following the story.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): Their pictures were plastered worldwide, on television, on the Internet, a holiday terror scare, even the president got involved.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: And if anybody has any information about the five, I would hope they would contact their local authorities.

ARENA: But it turns out it was all a false alarm. The FBI has called off the manhunt. The informant who gave the tip apparently lied. It's now believed he was hoping to strike a deal with prosecutors. Sources say even though there were some doubts from the start, the tip coincided with separate intelligence about a possible terror threat around the New Year's holiday. FBI supporters say it's a case of damned if you do, damned if you don't.

STEVE POMFRANTZ, FORMER FBI AGENT: I think the worst possible thing that could happen now for the credibility of not only the FBI but the government as well is for something to happen and it would later be revealed that the government had some information and didn't either act on it or make it public.

ARENA: Information about the five came from an alleged forger who was in Canadian custody, Michael Hamdani, who also faces charges in the United States.

DEEPAK PARADKAR, HAMDANI'S ATTORNEY: Mr. Hamdani, as I said previously, had cooperated with authorities.

ARENA: An FBI investigation into a Pakistani human smuggling ring led to Hamdani. FBI officials say he claimed he sold the five fake documents. They were traveling together and were anxious to get to the United States by December 24. But problems surfaced last week when a jeweler in Pakistan said his photo was among the five and that he'd never been to the U.S. Still, the manhunt continued leading some to question how the public will react to the next alert.

LAWRENCE GOLDMAN, CRIMINAL DEFENSE ATTORNEY: When they come up again, people are not going to take them as seriously. People are not going to pay as much attention. And people are going to hear it and say, "Another wild goose chase."

(END VIDEOTAPE)

ARENA: FBI officials say that they do understand that risk but insist they that would react in the very same way given similar circumstances -- Wolf.

BLITZER: As you say, damned if you do, damned if you don't. I don't know what you do in a situation like this. Kelli Arena, thanks very much for buttoning up this story, which a lot of us, of course, were watching very closely over the past couple of weeks.

And it's been on simmer for a while, but the case against Martha Stewart soon may be coming to a boil. A source tells CNN prosecutors want another interview with the broker's assistant, who's agreed to testify about Stewart's alleged insider training. CNNfn's Allan Chernoff is joining us now live from New York with details -- Allan.

ALLAN CHERNOFF, CCNfn CORRESPONDENT: Thank you, Wolf. It may be getting hot in the kitchen for Martha Stewart. We've learned that prosecutors have asked the assistant to Martha Stewart's stockbroker to return for additional questioning. A date has yet to be set, but this does indicate the U.S. attorney's office here is continuing to pursue Miss Stewart on possible insider trading charges.

Now, you'll recall Martha Stewart did unload her shares of ImClone just before the company's experimental cancer drug got a thumbs down from the Food and Drug Administration. The brokerage assistant, Doug Faneuil, pled guilty in October to a misdemeanor admitting that he did share inside information with Miss Stewart and he agreed to cooperate with prosecutors. Miss Stewart has said she did nothing improper. And today, her spokesperson refused comment.

The former chief executive of ImClone, a friend of Miss Stewart's, is facing sentencing March 17 after pleading guilty to securities fraud. Now, another worry for Miss Stewart, Chrysler is planning to drop its ad deal with Martha Stewart's company when it expires in March. The Chrysler marketing executive says the auto company is getting out of the deal -- quote -- "as fast as possible," although he denies the insider trading investigation is the cause.

In spite of the investigation, Martha Stewart Living Omni Media yesterday introduced a brand new magazine, "Every Day Food." The magazine features food with flare, easy recipes that take less than half an hour to prepare. Martha Stewart's name is not prominently displayed on the cover. Analysts say that is part of the company's new strategy; keep selling household tips without a hard sell of Martha Stewart -- Wolf.

BLITZER: On this magazine, Allan, how important is the magazine to the company, though, the new magazine?

CHERNOFF: It's pretty significant. They are rolling it out in a big way. Three-quarters of a million magazines being sent out, subscription and also at supermarkets and newsstands. That compares to 2.3 million, the distribution of "Martha Stewart Living" magazine. So, they are betting quite a bit of this new publication.

BLITZER: Allan Chernoff with the latest on the Martha Stewart story. Thanks, Allan, very much.

Let's move on to a shocking story right now. Detroit's police department is investigating one of its own, an officer who cut off the tip of a woman's finger while he was trying to handcuff her. Sandra Ali of our CNN affiliate, WJBK, has more on this unusual case.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: It was like something out of a horror movie.

SANDRA ALI, WJBK CORRESPONDENT (voice-over): She has a hard cast on her hand and only four fingers left. Forty-five-year-old Joanie Gullas (ph) says she still can't believe what happened to her over the weekend. Early Sunday morning, Gullas, sitting in her Astro van waiting for friends in this parking lot near the Huddle Lounge. She says a cop in plain clothes approached her for I.D. She allegedly asked to see his badge. That's when Gullas says the officer punched her.

UNIDENTIFIED FEMALE: He just clocked me.

ALI (on camera): In the face?

UNIDENTIFIED FEMALE: Right in the face. And then, I just looked down and saw my handful of blood. And before I could think of anything, he dragging me out of the car and threw me on the ground.

ALI (voice-over): On the ground, Gullas says the cop used a knife to cut her sleeve then her hand before cuffing both of them behind the back. Minutes later, two officers in uniform pulled up in squad cars. They called an ambulance to whisk her away. That's when she first realized two of her fingers were severed. Regardless of how much medication she takes, she says the pain is unbearable.

UNIDENTIFIED FEMALE: No matter you touch, it hurts, you know. And then it just multiples by a hundred because it's just -- I can't -- it -- you know, it feels like someone just -- the whole time just pulling something. I can feel it right where it's cut off.

(END VIDEOTAPE)

BLITZER: That report from our affiliate reporter, WJBK's Sandra Ali in Detroit. This afternoon Detroit police officials said the officer was one of three taking part in an undercover armed robbery detail. They say two investigations are now under way.

(BEGIN VIDEO CLIP)

CHIEF JERRY OLIVER, DETROIT POLICE: The Professional Accountability Bureau has submitted a warrant to the Wayne County prosecutor's office and we're also conducting a parallel administrative review investigation that will go into whether or not department policies and procedures were violated and we'll also recommend the appropriate discipline.

(END VIDEO CLIP)

BLITZER: We'll keep you updated on what eventually happens in these investigations. When we come back, a famous soap star out of a job. Now, Michael Nader wants his habit to be treated as a disability. And he wants ABC to pay for it. The straight dope when we come back.

(COMMERCIAL BREAK)

BLITZER: Earlier we asked: which show is the longest running soap opera in television history. The answer, "Guiding Light." The show made its television debut 51 years ago. It started as a radio program in 1937.

A former soap opera star was flying high until he was busted on drug charges. Two years after his downfall, he's fighting back, suing his former employer for millions of dollars.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): You may know Michael Nader as Count Dimitri Marick on ABC's daytime soap opera, "All My Children." Nader hopes you'll see him again in that role, but you may not.

NADER: I was mortified by, you know, what took place to me.

BLITZER: Nader is suing ABC for more than $31 million trying to recover unpaid wages and other damages. He was arrested on cocaine possession charges nearly two years ago. He says ABC told him he could have his job back if he successfully completed drug treatment and he says he's done that. NADER: I want my life back. I went away. I did my recovery. I came back. I enrolled in an outpatient program for another year at Hazelton, New York. So I was ready to go back to my craft and go back to work.

BLITZER: ABC still decided not to have Nader back on "All My Children", even after he underwent that drug treatment. We contacted ABC and a spokesman said the network would not comment on pending litigation. Complicating that litigation, Nader is using the Americans With Disabilities Act to bolster his case against ABC and the show.

JOSEPH RANKI, NADER'S ATTORNEY: People can't misrepresent to the disabled or people who are protected by law that they're going to follow the law, they're going to follow the contracts and then go a different way and discriminate against that person because of the disability.

BLITZER: But it's far from clear whether Michael Nader is protected under the Americans With Disabilities Act.

(END VIDEOTAPE)

BLITZER: Joining us now from New York to talk a little more about this case, our legal analyst, Jeffrey Toobin.

It sounds absurd but is he, in fact -- does he have any legal basis to claim that under the Americans With Disabilities Act he has a lawsuit there?

JEFFREY TOOBIN, CNN LEGAL ANALYST: Well, one thing that is clear under the Americans With Disabilities Act is that drug addiction -- addiction is a disability.

And there have been people who have sued successfully on the grounds that they were discriminated against because they had drug addiction. That is not to say that he will win his case. There are lots of other obstacles. But drug addiction is considered a disability under the act.

BLITZER: So if you were a lawyer representing ABC, you would have to take this lawsuit very seriously?

TOOBIN: You certainly would. But there's certainly a lot of ways that he could still lose. One of the ways is the act says you can't be considered disabled if you are currently still using drugs. And remember he was arrested in 1991. He could be fired on the grounds of being arrested. That is not protected under the American Disabilities Act.

If he didn't follow the program that was prescribed for him for his recovery, he could also be fired for that. If he didn't do his job -- if he didn't do his acting job properly, he could be fired for that. So there are lots of possible defenses. But it is true that people who are addicted can sue under the act. BLITZER: Because to the average viewer out there, including myself, I assume that if somebody is convicted of using cocaine, an illegal drug, that's a firable offense in and of itself.

TOOBIN: That -- certainly, that is a firable offense. But I think what the act is really talking about is if you know anyone who has been through a 12-step program, they always talk about that they are addicted even years later after they haven't used drugs for years.

So if you were to fire someone on the grounds of being a drug addict who hadn't used drugs in 10 years, you know, maybe that is a suit that the court should support. And that's how the act is drafted and that's what it's meant to protect. But using drugs and getting fired, that can still get you fired.

BLITZER: All right. Jeffrey Toobin with a little analysis on what must be an unusual lawsuit but maybe not all that unusual after all. Appreciate it very much.

TOOBIN: OK, Wolf.

BLITZER: Thank you. And dangerous radical or American icon? A rare glimpse at Malcolm X in his own words. That's still to come. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Almost four decades after his murder, the world is about to get the most in-depth look even at the mind of the controversial Black Nationalist leader, Malcolm X. CNN's Jamie Colby explains.

(BEGIN VIDEOTAPE)

JAMIE COLBY, CNN CORRESPONDENT (voice-over): Thousands of personal papers once belonging to Malcolm X have been deposited by his family with the New York Public Library. The Schomberg Center in Harlem, where he once preached, will spend the next 18 months archiving what it calls the most comprehensive and personal look at the controversial civil rights leader.

HOWARD DODSON, DIRECTOR, SCHOMBERG CENTER: That's what shows up in this collection over and over again, his constant search for clarity for himself and for the public that he was going to be presented to.

COLBY: Two of Malcolm X's daughters, Atallah and Malaak Shabazz called their gift a celebration, particularly for researchers who have not had so many of his diaries, letters, and speeches in one place.

ATALLAH SHABAZZ, MALCOLM X'S DAUGHTER: Anything that is significant, I'm real proud to share. I love who my father is. I'm proud of who my father is. I can't wait to fill in the blanks.

COLBY (on camera): We're told that the documents reviewed so far are in relatively good condition considering most of them are 40 years old. But anyone who handles any of the documents in these two crates will literally have to wear kid gloves to preserve their condition.

But what they'll see for the very first time is the evolution of some of Malcolm's talks. Take, for example, this speech delivered in 1963, initially entitled "God's Judgment of America," later changed to "God's Judgment of White America."

(voice-over): The 700-pounds of material also contains photographs of Malcolm X with his wife, Betty Shabazz, and with famous people -- Mohammed Ali, Fidel Castro and dignitaries he met around the world.

Much of this collection was slatted for the auction block earlier this year, but the family stopped that sale from happening.

MALAAK SHABAZZ, MALCOLM X'S DAUGHTER: It was devastating enough to lose our parent the way we did. But the larger tragedy was the potential of losing my parents' legacy and having it dispersed.

COLBY: The library will hold the material for at least 75 years, but the Shabazz family will retain ownership.

A. SHABAZZ: He's an icon in his absence, but he was a man in presence, ever evolving, always growing.

COLBY: Plans are to someday sure with the general public the collection and the spirit of who their father really was.

Jamie Colby, CNN, New York.

(END VIDEOTAPE)

BLITZER: Time's running out for your turn to way in on our "Web Question of The Day." What impact would the Bush plan have on the economy, help, hurt or no impact? Log onto cnn.com/wolf. That's where you can vote and we'll have the results immediately when we come back.

(COMMERCIAL BREAK)

BLITZER: Here's how you're weighing in on our "Web Question of The Day." Remember, we've been asking you this question. What impact would the Bush plan have on the economy, help, hurt or no impact? Thirty-five percent of you said it would help. Fifty percent of you say hurt. Fifteen percent of you say no impact.

Remember, you can find the exact vote tally and continue to vote on our Web site, cnn.com/wolf. This is not a scientific poll.

Let's get to some of your e-mail. Jane writes this: "If Bush really wants to help people with his tax plan, why doesn't he eliminate the income tax on unemployment benefits? That would really help those who have little income."

Gary sends this note: "Stopping double taxation on dividends will benefit the corporations and the wealthy. Stopping double taxation on social security will help seniors and the middle class." Kelly has a positive view of the president's plan: "The president's economic package is a good compromise. The Democrats need to be cautious in their criticism. The president is doing the right thing for the country and the economy."

Remember, we want to hear from you. Send me your e-mail, questions, your comments to cnn.com/wolf.

That's all the time we have today. Please join me again tomorrow, 5:00 p.m. Eastern. Don't forget, "SHOWDOWN IRAQ." That's weekdays at noon Eastern. Until then, thanks very much for watching. I'm Wolf Blitzer in Washington. "LOU DOBBS MONEYLINE" is, of course, coming up.

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