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Lou Dobbs Tonight

LOU DOBBS TONIGHT For July 29, 2004, CNN

Aired July 29, 2004 - 18:00   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.


LOU DOBBS, HOST: Tonight Senator John Kerry will accept the Democratic Party's presidential nomination and try to convince Americans he should move into the White House.
One of the leading young stars in the Democratic Party, Congressman Harold Ford of Tennessee, will be here and Congressman Luis Gutierrez will tell us what the Kerry/Edwards ticket offers Hispanics that Bush/Cheney doesn't.

Also tonight, the rising cost of health care. Senator Kerry says he has a plan to help middle class Americans, but would it work?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: And we have a level of government service that we expect and have provided and that eventually needs to be paid for.

(END VIDEO CLIP)

DOBBS: And new concerns about the future of our democracy after computer crashes destroy electronic voting records in Florida.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The American public wants one thing and this is not a partisan request. They want their votes to count.

(END VIDEO CLIP)

DOBBS: Tonight, our democracy in jeopardy, a special report.

ANNOUNCER: This is LOU DOBBS TONIGHT for Thursday, July 29. Here now for an hour of news, debate and opinion is Lou Dobbs.

DOBBS: Good evening. Tonight Senator John Kerry delivers the most important speech of his career as he accepts the Democratic Party's presidential nomination. Senator Kerry will try to convince Americans he is a strong leader who is more qualified than President Bush to be commander-in-chief. We begin our coverage tonight with Joe Johns on the floor of the Democratic National Convention in Boston -- Joe.

JOE JOHNS, CNN CORRESPONDENT: Lou, Governor Bill Richardson at the podium right now, but tonight is John Kerry's biggest moment so far, he is expected to speak directly to the issue of military experience and fitness to serve as commander-in-chief. Senator Kerry did appear at the podium earlier today just to get a feel of the setup. We have some pictures of that. His remarks are expected to range from personal reflections to policy positions.

We have an advanced graphic to give you some of the information on one of the quotes he's expected to say. "I defended this country as a young man, and I will continue to defend it as president. Let there be no mistake, I will never hesitate to use force when it is required. Any attack will be met with a swift and certain response. I will never give any nation or international institution a veto over our national security, and I will build a stronger American military."

Expectations are high here in the Fleet Center for his speech this evening. People say they want Kerry to tell a personal story, show some warmth. One delegate told me this afternoon -- quote -- "We want to hear the pulse of his heart." Others, though, are trying to lower expectations. They say, well, Kerry may not necessarily be the warmest person, he is certainly, they say, a competent person.

Lou, back to you.

DOBBS: Joe, thank you very much. Joe Johns reporting from Boston.

One of the senator's biggest challenges tonight, of course, will be to win over the undecided voter. Senator Kerry will try, among other things, to erase doubts that he has the strength of character necessary to win the global war against radical Islamist terrorism.

Bill Schneider has the report -- Bill.

BILL SCHNEIDER, SENIOR POLITICAL ANALYST: Well, Lou, you know like the old saying goes, you never get a second chance to make a first impression. Well for John Kerry, his first chance comes tonight. And because, surprisingly, a lot of voters say they don't know much about him.

(BEGIN VIDEOTAPE)

SCHNEIDER (voice-over): What do voters see as John Kerry's strengths? Several polls have asked people whether different qualities apply more to Kerry or to George W. Bush. Voters say Kerry cares about people like themselves and he understands their problems, at least more than President Bush does. That's empathy. Kerry? Empathy? He's supposed to be a New England partition, aloof and distant. But he's also a Democrat. For Democrats, empathy is a given.

BARACK OBAMA (D), SENATORIAL CANDIDATE: A belief that we're all connected as one people. If there is a child on the south side of Chicago who can't read, that matters to me even if it's not my child.

SCHNEIDER: Kerry's weaknesses, not as strong or decisive. So far, others have been pleading Kerry's case.

SEN. JOHN EDWARDS (D), V.P. CANDIDATE: Decisive, strong -- is this not what we need in a commander-in-chief?

SCHNEIDER: Tonight Kerry has to make the case for himself. Steadiness is another Kerry weakness. The Republican Party has just released a video detailing Kerry's support for the war in Iraq.

SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: We have to be prepared to go the full distance, which is to do everything possible to disrupt his regime and to encourage the forces of democracy.

SCHNEIDER: And his opposition to it.

UNIDENTIFIED MALE: Are you one of the anti-war candidates?

KERRY: I am, yes.

SCHNEIDER: Tonight voters will be listening closely to hear exactly what Kerry's position is on Iraq. Just one, please. Another Kerry weakness, voters don't really know him, but they like President Bush. Some famous filmmakers like Steven Spielberg will try to change that tonight.

UNIDENTIFIED FEMALE: He really cares about fairness.

UNIDENTIFIED MALE: I respect him. He's got a big heart.

UNIDENTIFIED MALE: He's a tough customer.

UNIDENTIFIED MALE: John's got a very deep sense of family.

(END VIDEOTAPE)

SCHNEIDER: Now, Lou, here is a surprise. When it comes to having the right experience for the job, people say they see Kerry as the equal of Bush, and Bush is the president of the United States. That's what his military experience has done for him -- Lou.

DOBBS: Bill, that's fascinating, the challenge before the senator. Let me ask you about this quote that Joe Johns just reported from the speech. Any attack will be met by a swift and certain response. Is there any significance in that language that you see that is worthy of analysis here? "Any attack will be met with a swift and certain response." Is that, in your judgment, a criticism of President Bush? Is it a repudiation of peremptory actions by the United States?

SCHNEIDER: No, I think what he's trying to say is I'll do the same thing that you know President Bush will do. If the United States is attacked I will respond, just like President Bush. And, in fact, he has said on other occasions, and he may repeat tonight, that he does believe in a preemptive strike if there is a sure and certain threat. But he says the intelligence must be decisive, and he does not believe it was decisive in Iraq.

DOBBS: Bill Schneider, thank you very much.

Senator Kerry called his running mate, Senator John Edwards, last night, called him to praise his convention speech. The vice presidential candidate today spent much of his time meeting with hundreds of delegates from Mississippi, Alabama, and his home state of North Carolina. Senator Edwards encouraged those delegates to stay active in the campaign. He and Senator Kerry tomorrow begin a cross- country campaign tour that will take them to 21 states.

They will begin in three important battleground states, Pennsylvania, West Virginia, and Ohio. Republicans were quick to respond to Senator Edwards' speech last night and to launch a preemptive attack against Senator Kerry before his address tonight. The Republican criticism was led by former New York Mayor Rudy Giuliani, a politician who personified strong leadership following the September 11 attacks.

Dana Bash reports from Boston.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Gentlemen, please welcome America's mayor, the Honorable Rudy Giuliani.

(APPLAUSE)

DANA BASH, CNN CORRESPONDENT (voice-over): GOP spinners saved this one for last. The popular politician on the front lines of 9/11 saying John Kerry's not up to the challenge.

RUDY GIULIANI, FORMER MAYOR OF NEW YORK: What we need is a strong, principled leader who is going to stand up for what is needed when it is popular and when it is unpopular And that's president George Bush.

UNIDENTIFIED MALE: And America...

BASH: Oh, and he got the talking points on the Democrats' Convention speeches too.

GIULIANI: Reinvention convention.

BASH: Also in the GOP lineup, someone who knows what it's like to run against the Democratic nominee.

UNIDENTIFIED MALE: He can be a master at the art of changing the subject.

BASH: Bill Weld lost a close 1996 race for Kerry's Senate seat. He coined a new phrase for what team Bush calls Kerry's flip-flops.

WILLIAM WELD, FMR. GOV. OF MASSACHUSETTS: I would call analysis paralysis, seeing so many sides of an issue that it's difficult to make a decision and get on with it, which is something in government sometimes you simply have to do.

BASH: But Weld had a warning for Mr. Bush too. He had eight high profile debates with Senator Kerry and says he's hard to pin down, hard to beat.

WELD: Nobody better, and the senator is very articulate. I think it's an uphill fight against John Kerry in a televised debate.

BASH: Before the fall debates, though, Republicans will hold their convention. Giuliani and other moderates will have the spotlight. So given the president's recent appeal to cultural conservatives, look for Democrats to throw Republicans' extreme makeover line right back at them.

GIULIANI: I haven't had a makeover. You've noticed no makeover. I'll be the same as I've always been, and so will all the speakers. It will show the broad range of the Republican Party.

(END VIDEOTAPE)

BASH: And after his campaign attacked John Kerry here all week long, the president hits the campaign trail first thing in the morning with a retooled stump speech. It's the start of what aides call a four-week strategy ending at his convention to unveil some broad new themes if he's reelected -- Lou.

DOBBS: It's under way. Dana Bash, thank you.

All this week, Democrats have been showcasing the younger stars of the party. One of them is my next guest, Congressman Harold Ford of Tennessee. Here's part of what he said to the convention yesterday.

(BEGIN VIDEO CLIP)

REP. HAROLD FORD (D), TENNESSEE: For the past four years, we have been offered the wrong set of answers to a daunting new set of challenges. We have been offered hardheaded stubbornness when boldness and imagination was needed. We could spend hours detailing these failures, but Americans who have seen their wages decline, families grow, and prices rise all know we need a change.

(END VIDEO CLIP)

DOBBS: Congressman Harold Ford joins me now from the Fleet Center in Boston. Congressman, good to have you with us.

FORD: It's a very loud Fleet Center. Good evening. Good to see you, Mr. Dobbs.

DOBBS: And I hope you can hear me over the rising noise there in the convention center. First, Congressman, the stubborn stubbornness you referred to last night, would you give us a few particulars. What were you talking about there?

FORD: You know, I supported the use of force, if needed, in Iraq, and I thought the president would use it adequately and appropriately. We can differ on that. But what is clear, after finding Saddam Hussein, is that we had no post-war strategy. And if indeed the White House called what is having a post-war strategy, I would contend we need a change. And the stubbornness and the ideological nature of many in this administration, I think, has caused them not to want to change.

Two, when it comes to the economy, the president promised after his tax cuts passed some year and a half or two years ago that the economy would boom, high paying jobs would come, and indeed all Americans would enjoy in the prosperity. That has not happened. In many ways, Americans are crying out for a change, and this president, for whatever reason, won't.

And last, this 9/11 commission, Mr. Dobbs, which has made, I think, some outstanding recommendations by a vote of 10-0 in Washington we're not used to unanimous votes, particularly when Democrats and Republicans are voting. But all 10 members voted in favor of recommendations to it at a minimum to create one intelligence czar with three deputies. This president is allowing those set of recommendations to sit and gather dust in many ways.

And one thing is clear, John Kerry has already made clear that he and John Edwards will implement immediately the recommendations made by this commission. So I think you could go down a list of things. But those would be the three most important, I think, in the minds of many across this country.

DOBBS: Congressman, you referred to the wages. And if I may, Congressman, invite you to call me Lou. It's necessary in requisite...

FORD: It's my southern manners. I apologize.

DOBBS: Well I apologize, but it's requisite that I address you as Congressman. Please, please call me Lou.

FORD: You call me Harold.

DOBBS: Thank you, sir. The fact is we just have declined, the Internal Revenue Service reporting wages declined by 10 percent over the past two years for Americans. What is specifically Senator Kerry going to do to reverse that? In your honest, best judgment, is there anything a president can do in the short order to reverse that?

FORD: I think it's a great question. First off, we've seen deficits rise under President Bush. As a matter of fact, the largest in history. We've got to curb our spending, and we even have to revisit some of the tax policies that have passed over the years. I think we should replace some of President Bush's tax cuts with a different and new round of tax cuts, perhaps eliminating taxes for those who earn $50,000 a year or less, eliminating federal taxes for businesses with earnings of less than $2.5 million a year if they provide health care for their workers.

And last, we provide a tax cut -- I know something dear to you, Mr. Dobbs, for those companies in America, small and large, who create jobs here in America. By doing these things, we not only put people back to work, but we free up resources and free up dollars for business people, for families, and for others across this country. And I think we've relieved some of the pressure on the deficit and relieved some of the pressure on price increases in this nation, not to mention a real energy plan that would help to lower gas prices over a period of time.

DOBBS: Congressman, what are you -- are you planning to do anything specifically and beyond the norm in supporting the Democratic ticket, Senator Kerry, Senator Edwards.

FORD: I'm delighted to be a national co-chair in this campaign. I joined it back in April. I was lucky. John Kerry was like an Internet stock. He was way up. He dropped. And unlike an Internet stock, he came right back up. I'm here to serve this team, and I look forward to a change in direction. I'm going to do whatever they ask me to do. I imagine I will continue to travel the country and continue to speak with you and many others about the greatness of this ticket.

DOBBS: Well, we look forward to the dialogue. We appreciate you being with us tonight, Congressman Harold Ford.

FORD: Can I say one last thing? I think you will hear that boldness and imagination that I spoke about yesterday in John Kerry's speech. And any questions about him being a flip-flopper, I think he will retire many of those concerns tonight. This is going to be a hard-fought campaign, and I can assure you that John Kerry and John Edwards both are ready for what will be a very spirited, interesting, and what we hope will be a victorious (UNINTELLIGIBLE).

DOBBS: Congressman Ford, thank you.

More convention coverage is ahead here. "Washington Post" columnist E.J. Dionne joins me. We'll be talking from Boston about Senator Kerry's speech tonight, his critically important speech.

And health care reform at the center of the Kerry/Edwards campaign, but do the Democrats have a real plan that will really help middle class Americans? We'll have a special report that intends to answer that question.

And new concerns tonight about the reliability of electronic voting after an astonishing computer failure in Florida. "Democracy At Risk" coming right up.

(COMMERCIAL BREAK)

DOBBS: Federal investigators tonight are trying to determine whether a woman taken into custody in Texas is involved in terrorist attacks. The Department of Homeland Security is calling the woman a person of interest. She was carrying an itinerary that suggests she had traveled from South Africa to the United Arab Emirates to London then to Mexico City, where she crossed the U.S./Mexican border illegally.

A man wanted for questioning in the California baby food scare says he needs a good lawyer. A man who identified himself as Charles Dewey Cage called "The Orange County Register" newspaper last night to deny any involvement. Authorities yesterday announced that trace amounts of the deadly poison ricin were found in jars of Gerber baby food in Irvine. The two babies who ate the food were not seriously injured. No arrests have been made, and police say the jars found were the only ones contaminated. Gerber has assured its customers that the tampering took place after production and distribution.

Returning now to our top story, the Democratic National Convention, my next guest says Senator Kerry tonight must appear both tough and likable to convince voters he should replace President Bush in the White House. E.J. Dionne, columnist for "The Washington Post" joining us from the Fleet Center in Boston.

E.J., good to have you here.

E.J. DIONNE, "THE WASHINGTON POST": Always good to be with you, Lou.

DOBBS: E.J., Senator Kerry has a huge job, a critical job tonight to project himself before the American people as the one to replace George W. Bush. What are your thoughts?

DIONNE: Well, I guess your view of how big the job is what your view is about how much trouble President Bush is in. I think that there are a lot of voters out there who are on the fence ready to throw the president out of power, but they can't quite get to John Kerry. I found that especially to be the case among moderate to conservative voters.

What Kerry has to do is to show those voters inclined to have Bush go that they can trust him in the war on terror, and this speech is going to have a lot on foreign policy in it, a lot on terrorism in it, and he also has to be somebody that they can live with for four years. John Edwards is known for his big smile. John Kerry has this reputation for being rather stiff. I think all that begins to work in his favor because all of us talking heads have said for days that, while Kerry isn't all that impressive as a speaker -- and I think he's going to live up to and go way beyond those expectations.

DOBBS: This -- as I hear you, E.J., you're suggesting that Senator Kerry's job may be made somewhat easier by the fact that, as often as wags would have it, it's a referendum on the performance of the incumbent. Is there -- part of that in what you're suggesting?

DIONNE: Exactly. I mean if you go back to the 1980 election, the race between Jimmy Carter and Ronald Reagan stayed very close. Reagan got in the race in a big way by giving a really great speech at the 1980 Republican Convention, but he still didn't catch up to Carter. And it wasn't until the last week of the campaign, after the primaries, that Reagan just surged past Carter. Americans had made a collective decision that they really wanted to get rid of the president then, but they hadn't quite decided they trusted Reagan. I think trust is the key word tonight for John Kerry.

DOBBS: That's interesting, E.J., because trust among the other issues and words that were tested in CNN's polling, as Bill Schneider reported here earlier, was strength, was decisiveness, was likability. Trust was not amongst those words, and yet you say it is critical. How does he, Senator Kerry, build that bridge of trust between himself and particularly the undecided voter? DIONNE: Well, I suppose we can -- I could play with the words and say they trust him to be strong enough, but I think it's that they need to believe that he shares enough of what they have in common. I think he has another interesting challenge tonight, which is there are a lot of states where Democrats hope to win because a lot of blue- collar people especially have lost their jobs, are worried about their health care. Ohio probably being the most important.

The Kerry folks have been trying to find the right balance in this speech. They know it's the year of 9/11, but a lot of those downscale voters are in the end going to vote on economics. And so they've calibrated this speech to make sure they have enough on terrorism and war to reassure voters that he can pass that threshold, but they want to win over those voters who have suffered in this economy by talking enough about economics and health care. You're going to hear a lot of economics, a lot of health care, a lot about tax fairness and growing the economy tonight.

DOBBS: E.J. Dionne, we thank you.

DIONNE: Very good to be with you, Lou. Thank you.

DOBBS: Still ahead here, the "Middle Class Squeeze". Senator Kerry says his health care plan will help working Americans save money. Critics, however, say the plan is nearly impossible to pay for. Our special report is next.

And then three of the country's top political journalists join us with their observations from the floor of the convention and the booth of the convention. We'll be talking with Karen Tumulty of "TIME" magazine, Ron Brownstein, "Los Angeles Times", Roger Simon of "U.S. News & World Report" next.

And our special report, "Democracy At Risk". Almost three months before the election, new concerns tonight about the integrity of electronic voting machines. We'll have that story and a great deal more still ahead here tonight.

(COMMERCIAL BREAK)

DOBBS: Health care has emerged as a hot topic of the Democratic National Convention. Over the past three days, Democratic speakers have used the words health care more than 160 times, more than any of the other key words. Despite all of the talk, Democrats are saying little about who will pay to help Americans secure good health care.

Louise Schiavone has our report.

(BEGIN VIDEOTAPE)

LOUISE SCHIAVONE, CNN CORRESPONDENT (voice-over): There's nothing more fundamental in American politics than the campaign promise.

EDWARDS: We have a plan that will offer all Americans the same health care that your senator has. We can give you tax breaks to help you pay for your health care.

SCHIAVONE: Sounds good, but with the federal deficit closing in on half a trillion dollars and standing by a promise to preserve middle class tax breaks wouldn't that be expensive?

ROBERT BIXBY, CONCORD COALITION: In fact, that was one of the criticisms that candidate John Edwards had of the Kerry campaign, was that the health care -- that we couldn't afford the health care plan. I think it is possibly around $900 billion over 10 years. They would then try to make some savings, but you don't know whether the savings would actually happen.

SCHIAVONE: The Kerry campaign projects its reforms will cost more than $650 billion over 10 years. Kerry would cover 27 million of the 40 million uninsured Americans. Medicaid would expand, still aimed at the neediest Americans. Small businesses and individuals would get tax credits to buy into either private plans or the federal health plan.

And when annual catastrophic health care costs exceed $50,000 the federal government would step in to help. But 13 million would still have no health care insurance under the Kerry plan. Even the most dispassionate analysts have a hard time making the Kerry numbers add up without more tax revenue or spending cuts or both.

CLINT STRETCH, DELOITTE & TOUCHE: They have a level of government service that we expect and want to have provided and that eventually needs to be paid for.

SCHIAVONE: Democrats argue Americans are already paying for a weak health care system.

REP. JOHN DINGELL (D), MICHIGAN: We're paying it through other mechanisms such as charity being charity and things of that kind, oftentimes enforced charity by hospitals and health care providers. We're also providing it in some instances by government, federal state or local.

SCHIAVONE: When a CNN/"USA Today" pre-convention poll asked, who would better handle health care issues, 54 percent said John Kerry. Thirty-seven percent said George Bush.

(END VIDEOTAPE)

SCHIAVONE: Lou, Democrats are convinced that higher taxes on the rich will forestall a deficit crisis. But budget hawks warn that as health costs continue to spiral and the federal bill comes due, everyone's taxes will rise -- Lou.

DOBBS: Louise, thank you. Louise Schiavone from Boston.

Three of this nation's top political journalists have been sharing their insights on the Democratic Convention with us throughout the week. They join us again tonight from the Fleet Center in Boston -- Ron Brownstein, national political correspondent from the "L.A. Times", Karen Tumulty, national political correspondent "TIME" magazine, Roger Simon, political editor, "U.S. News & World Report", who has returned to Washington D.C., apparently, for other coverage. Good to have you with us Roger, Karen, Ron.

Let me begin with you Karen. How critical -- one assumes that this is the most important speech of Kerry's life. Is there any reason to think otherwise?

KAREN TUMULTY, "TIME MAGAZINE": Oh, absolutely, Lou. I mean, this is easily the -- it's the pivot point. It's going to set the tone for the rest of the campaign. And for a lot of Americans, this is really going to be the very first impression that they get of John Kerry. As much as we've been talking about him all these months, a lot of people are just beginning to tune into this campaign right now.

DOBBS: Ron, the idea that Senator Kerry tonight, there'd been some suggestion from various quarters that he will have some surprises. Have you heard anything about that?

RON BROWNSTEIN, "LOS ANGELES TIMES": Well, Lou, it's a little hard to hear you right now. The band has just worked themselves up.

But I talked to a number of staffers, senior staffers, yesterday on one key question, and they all insisted that there was not going to be a significant new departure on Iraq, which may be the issue that people are waiting for. They said, of course, that could change at the last minute.

But to me, what they're saying is what they're hoping to do in this speech is give people a sense of who he is through his biography, a better sense of what his plan is, both domestic and foreign. Until John Edwards last night, that has hardly come up.

And, then most importantly, Lou, to fuse the two together and to try to argue that the agenda is the outgrowth of the life story, because that really is important for candidates to give it more credibility. And voters tend not to believe that candidates are sincere about what they're saying. If you can make the argument that it's an outgrowth of what he's been fighting for his whole life, they think that is the key tonight.

DOBBS: Roger, in watching all of the proceedings this week, as we will be watching the proceedings as the Republicans convene in New York, I couldn't help but be struck by the idea that there's a lot of preaching to the choir, if you will.

Will this speech tonight really be an opportunity to speak to the undecided, or is this more about the faithful?

ROGER SIMON, "U.S.NEWS AND WORLD REPORT": It's got to be about both. Neither candidate has really locked up the base, especially John Kerry. John Kerry has to worry about a party that knows why it hates George Bush, and they really are united in their dislike for the President. But many Democrats have not yet given their hearts to John Kerry

And this is what John Kerry has to do in his speech tonight. He's got to talk to both groups. He's got to win over members of his party then he's got to reach out beyond party lines to people who are genuinely swing voters -- even though those numbers are very small, they decide elections -- and convince them that he is a stronger, more competent protector of the homeland, a stronger more competent protector of the economy, stronger more competent person capable of forging the international alliances that President Bush has been unable to forge.

DOBBS: Is it your judgment, Ron, that Senator Kerry can accomplish all of this, or is this simply too tall an order? My gosh, as one talks about managing expectations here, there's a tremendous burden on the Senator.

And, I have to tell you candidly, I can't recall the acceptances speeches of President Bush or President Clinton through two conventions. That may have something more to do with my long-term memory than the importance of the matter, but what do you think?

BROWNSTEIN: Well, Lou, I lost a little of that with the -- as I say, with the band here.

DOBBS: Would you tell that band to just turn it down a bit?

BROWNSTEIN: But you know, in a way -- yes. Can we get them down? Maybe they're advancing for the Springsteen rumor.

In a way, the challenge for Kerry, I think, has been raised by the first three nights -- there they go. So much has been made of presenting him as a strong, steady leader under fire, who stands in the boat in the face of enemy fire and makes life and death decisions that saves men's lives. He has to live up to that frame that has been built.

You know, last night, John Edwards had a speech that read great on paper, but it probably was not his most effective performance. I mean, he rushed through a lot of it and in the portions of national security, I'm not sure he projected the command that voters want in these times.

And I think the same challenge is there for Kerry. Is he going to be, in the flesh, the person that America has been promised over and over again these past three nights?

DOBBS: Karen?

TUMULTY: Well, he does have one benefit going for him, and it's the reverse of what Senator Edwards had last night, which is a reputation as a rather, shall we say, uninspiring speaker.

So the bar in some ways, at least stylistically, is going to be a lot lower for Senator Kerry even than it was for Senator Edwards last night. But I absolutely agree the first thing that has to translate here is strength and purpose; a sense that he knows what he wants to do.

Because to the degree he has been hit at all with all these Bush ads, it is as a waffler, as somebody who doesn't know his own values and his own mind about things. And so that is the secondary perception that he is up against tonight.

BROWNSTEIN: Can I add a quick point, Lou, very quickly?

DOBBS: Sure.

BROWNSTEIN: The hole in the doughnut at this convention is what John Kerry was doing between Vietnam and today. They've made almost no progress at illuminating his Senate career or trying to argue that in the Senate he has displayed the same qualities that they are projecting from Vietnam, the kind of steadfastness and resolve.

Republicans want to argue that what you really need to know about John Kerry as commander-in-chief isn't learned in the Mekong Delta, it's learned in the U.S. Senate. It's the opposite lesson. It's not that he stood under fire; it's that when the going got tough, he scattered. He was all over the place. He was for the war; he was against the war, for No Child Left Behind and against it.

So, in some ways, I think one of the things they've done least effectively in this convention is illuminate how the values that they saw him in Vietnam -- or projecting on him in Vietnam have informed the rest of his career. I would put that near the top of the list for tonight.

DOBBS: Roger, the last question. Is it really rational to expect John Kerry to deal with the attack ads of the Republican Party or, for that matter, when Democrats attacked George Bush, he with a speech? It seems like an excessively tall order now to try to counter that with a speech.

SIMON: There are huge expectations, as you correctly pointed out, Lou, for this speech. Different factions of the party, different advisers to Senator Kerry, all expect him to do different things.

But basically, when viewers turn off their TVs tonight after watching CNN until 4:00 a.m. or however long it's on, they've got to be able to imagine John Kerry in the Oval Office leading this nation in a very difficult time ahead. And if John Kerry can project that single image of being able to imagine him as President, then he will have succeeded.

DOBBS: I said last question; I fibbed. I want to ask you this: as we were winding down in this convention -- it would be shameful not to ask this question -- as compared to other conventions has this been well organized? Has it achieved the purpose the Democratic Committee wanted? Has it been well done, in your minds? Karen?

TUMULTY: Well, for those of us who are looking for news in a convention it's been too well-organized. When the biggest story out of a convention is a slip of the lip by the first lady-in-waiting, you know that it is a well-organized, well-scripted convention.

DOBBS: You saw that as a slip of the lip. It sounded rather purposeful to me. Ron, we thank you very much. Karen, we're going to have to break away from you. We really appreciate your thoughts, your insight. Roger Simon, thank you.

TUMULTY: Thank you.

DOBBS: Still ahead here: our democracy at risk. New concerns tonight about electronic voting.

That, after records from a Florida election two years ago have disappeared. We'll have that special report for you.

And the race for the White House and the impact of the Hispanic vote. The Hispanic vote is expected to be bigger than ever. I'll be talking with the head of the Congressional Hispanic Caucus Immigration Task Force, Congressman Luis Gutierrez.

And we'll have a spectacular sight for you and the longstanding tradition of the Chincoteague ponies. All of that, and more, still ahead hear tonight. Stay with us.

(COMMERCIAL BREAK)

DOBBS: Rising concerns tonight about the reliability of electronic voting machines just three months before the presidential election.

The most recent problem, computer crashes, erased nearly all of the electronic records from a gubernatorial primary in Florida. Critics say the e-voting machines are simply a threat to this country's democracy. Bill Tucker reports.

BILL TUCKER, CNN REPORTER: It's been four years since the last presidential election. Gone are the threats of hanging chads, replaced by fears of missing votes cast on electronic touch screens, leaving no paper trail. Concern over just that issue brought a handful of Democrats together in Boston.

(BEGIN VIDEO CLIP)

KEVIN SHELLEY, CALIFORNIA SECRETARY OF STATE: The American public wants one think and this is not a partisan request. They want their votes to count.

(END VIDEO CLIP)

TUCKER: When it comes to voting, most people don't trust computers. Election problems in various states such as Ohio, Virginia, Texas, California, and Florida bear them out, justifying a growing unease with electronic voting.

(BEGIN VIDEO CLIP)

PATRICK BASHAM, CATO INSTITUTE: I think we have compromised our confidence. But we've done that in large part because after the last election we -- you know, we set the bar too high too soon.

(END VIDEO CLIP) TUCKER: Is the bar too high? It's a simple demand: a receipt for a vote. After all, we get them when we buy groceries, buy gas for the car; go to the ATM, why not when we vote?

(BEGIN VIDEO CLIP)

HOWARD SIMON, FLORIDA ACLU: We're very concerned that, with all of the problems that are being revealed about the touch screen electronic machines, the absence of an independent basis in the form of paper; a voter verified paper trail, is going to make it more difficult.

Until the machines can be shown to be error free, then paper may be something we continue to have to rely on.

(END VIDEO CLIP)

TUCKER: Early this year, a study by Johns Hopkins came to this plain conclusion: electronic voting machines must produce a paper receipt so that elections can be audited.

New Jersey Democrat, Rush Holt, has introduced legislation in the House, requiring a paper trial of votes. Over in the Senate, Nevada Republican John Insen has introduced similar legislation.

And it can be done. Nevada will have a paper trail this November. The biggest reason it's not done more widely, Lou, is cost.

DOBBS: Well, the cost of not providing a reliable system for voting, in which the American voters have confidence, is quite a bit higher. Bill Tucker, thank you very much.

That brings us to the subject of tonight's poll. The question: which is your preference for voting in the next presidential election: paper ballots, absentee ballot, electronic voting or electronic voting with paper receipts? Please cast your vote at cnn.com/Lou. We'll have the results coming right up.

Now, let's take a look at some of your thoughts; many of you e- mailing us with your concerns about electronic voting.

Carolina Ganter of Potsville, Pennsylvania: "Lou, I think it's outrageous that every voter machine does not have a paper trail. We take the time to drive to the polls and need to know that our votes are counted. Can you imagine if our banking system had no double- check?"

Thomas Andreas of Phoenix, Arizona: "Lou, with all of the problems concerning the electronic voting machines in some states, an absentee ballot is the only way to have a paper record of your vote, and may be the only way to ensure your vote was properly counted."

We love hearing from you. E-mail us at loudobbs@cnn.com.

The Chincoteague Volunteer Fire Company in Virginia, today, is auctioning off ponies that took part in a longstanding tradition, as tens of thousands of people turned out yesterday on Chincoteague Island to watch the annual pony swim.

More than 125 ponies made the trek through the water. So-called salt water cowboys have been driving ponies across the Assateague Channel since the 1920s. The pony swim was made famous by Marguerite Henry's 1947 children's classic, "Misty of Chincoteague."

Still ahead here: the impact; the influence of Hispanic voters in this election. Congressman Luis Gutierrez, Chair of the Congressional Hispanic Caucus Immigration Task Force is our next guest.

And disturbing information from the IRS which shows the income of average Americans falling while corporate heads are making more than ever. We'll have that report.

And a major clean-up in Texas tonight. More than a foot of rain fell in some parts of northern Texas. That story and more still ahead here. Please stay with us.

(COMMERCIAL BREAK)

DOBBS: My guest tonight says the Kerry-Edwards ticket will do far more for Hispanics in this country than President Bush and Vice President Cheney.

Congressman Luis Gutierrez of Illinois is Chairman of the Congressional Hispanic Caucus Immigration Task Force. He joins us tonight from Boston. Congressman, good to have you with us.

ILLINOIS CONGRESSMAN LUIS GUTIERREZ, CHAIRMAN OF THE CONGRESSIONAL HISPANIC CAUCUS IMMIGRATION TASK FORCE: Thank you. Nice to be with you, Lou.

DOBBS: I hope you can hear me as the noise is building there at the convention center.

GUTTIERREZ: I can.

DOBBS: The President has introduced an immigration policy, has established himself clearly as a friend of the Hispanic community. What is it that Senator Kerry and Senator Edwards will do for Hispanics in this country, as they consider their vote that the current administration does not or has not?

GUTIERREZ: Well, I think, on the immigration level, we were filled with a lot of hope and great expectations when on January 7th the President spoke about a new initiative to take the 8 to 10 million undocumented workers, many of whom are from Latin American countries, and to incorporate them fully into our society and take them out of the darkness and the shadows.

But Lou, quite honestly, he hasn't done anything. The rhetoric has not been matched with any merits on the house floor and any legislative proposal. We know that our team, the Kerry-Edwards team, has in the first 100 days made a commitment to making that legislative initiative a reality in the Congress of the United States. I think -- yes, sir?

DOBBS: I'm sorry. Just to interrupt you, but you know, according to the most recent Pugh research, immigration ranks last among the principal issues; the major issues for Hispanic and Latino voters in this country. Why is that your focus?

GUTIERREZ: Well, because I wanted to give you a special area which the posters always seem to miss, Lou. I think what we need to understand is that my daughter goes to school with children who, when they graduate, can't go on to college even though they're class valedictorian.

Every day in my community, Lou, this actually happens. There are American citizens whose wives are being deported because they can't fix their papers. We have a huge population that works in our agricultural and, you know, the agricultural industry wants a bill passed.

We need a bill passed so that those agricultural workers can have decency in pay and in terms of the work conditions that they have to work on. And yet we haven't seen any of those.

So it may not poll well, but I'll tell you, it's a very important emotional issue, and it's something at that strikes at heart and at the soul of our community.

DOBBS: At the community. As you know, Congressman, the fact is that the Hispanic vote in this country is not homogeneous, it is heterogeneous. It is diffused.

And a number of Hispanics, if we can put a number, approximating 8 to 12 million illegal aliens don't have the right to vote. Immigration is important, as you put it, to the community. But ultimately, the community is the nation.

And immigration reform on the part of -- to be put forward by Senator Kerry, we've heard nothing about it, have you?

GUTIERREZ: Yes, we have talked to the Kerry campaign. And if you look at the Democratic Party platform, it is very, very clear that they have indicated that there is going to be a road to permanency, to legalization of their status here in this country. And that's an important objective.

I know, Lou, that it doesn't poll well. I know that because I have a lot of arguments with the campaigns and with the Democratic Party structure. But if you watch Hispanic news, if you watch Univision, if you watch Telemundo, if you listen to the radio...

DOBBS: I watch Univision.

GUTIERREZ: Then you know they start the broadcast and many times end the broadcast with immigration as a key, vital issue that impacts our community.

Now, I will agree with you that, if you look, it's about jobs. It's about fair taxes. It's about decent schools. And we can have a debate about those issues because truly the Latino vote is about America. It's about the greater issues. It's about us being incorporated fully into this society.

DOBBS: And that is a very important issue for all Americans. Luis Gutierrez, Congressman, state of Illinois, we thank you and wish you a successful convention tonight as you watch your nominee accept the party's nomination.

GUTIERREZ: Thank you, Lou, for having me.

DOBBS: Thank you.

A reminder now to vote in our poll tonight. The question, which is your preference for voting in the next presidential election: paper ballots, absentee ballots, electronic voting or electronic voting with paper receipts. Cast your vote at cnn.com/Lou. We'll have the results later in the broadcast.

Coming up next here, the salaries of most Americans are actually going down. But one group of Americans is making certain they receive massive raises. We'll have details about responsible corporate governance and equity in economics as we continue. Stay with us.

(COMMERCIAL BREAK)

DOBBS: A disturbing new government report tonight showing Americans' income declining for an unprecedented two straight years. The Internal Revenue Service reporting, adjusted for inflation, that the income of all Americans fell more than 9 percent from 2000 to 2002.

Of course, that does include the period in which the recession was taking place and does not include an important year of economic recovery; nonetheless, disturbing. And at the same time, another report finds that corporate CEOs, well they're making more money than ever. The restraints are off. Christine Romans has the report.

CHRISTINE ROMANS, CNN REPORTER: As corporate CEOs enrich themselves even more, the American worker is struggling to stay even, and many are not succeeding. CEO pay surged an incredible 22 percent last year. That, while their employees' wages rose only 2 percent. In fact, when adjusted for inflation, their pay declined.

(BEGIN VIDEO CLIP)

DAMON SILVERS, AFL-CIO: There is nothing more painful than to hear these numbers in conjunction with what the average American worker, union and nonunion, is experiencing right now.

(END VIDEO CLIP)

ROMANS: The government said year-over-year wage growth is the slowest on record. At the same time, the median CEO salary rose to $4.4 million a year. That means CEOs rake in $85,000 each week while their workers earn $620 a week. CEO watchdogs say boards and executives just don't get it.

(BEGIN VIDEO CLIP)

NELL MINOW, THE CORPORATE LIBRARY: We've had a lot of reforms that require people to hire more lawyers and hire more accountants and check more boxes, but the fact is that as long as the CEOs are still picking the people who set their pay; we're not going to get any better than this.

(END VIDEO CLIP)

ROMANS: Critics say they have no problem if a CEO is paid millions for performance, but too many executives are paid just for having a pulse, handed wads of money by sleeping boards who mistake cutting jobs for real growth.

The window for reform may be closing. The business community is lobbying fiercely against allowing shareholders more control in picking the boards that are paying these CEOs so much. Lou.

DOBBS: Well, that fight is far from over. Christine, thank you. Christine Romans.

From wild salaries to wild weather: tonight nearly 30,000 people in Texas are without power because of severe storms. More than a foot of rain fell on north Texas overnight, triggering flash floods that swept through homes and highways. One man died after his truck hit a utility pole. Tonight a flood watch remains in effect for the entire area, that is, Dallas and north Texas.

Still ahead here: the results of tonight's poll. Stay with us.

(COMMERCIAL BREAK)

DOBBS: The results now of tonight's poll. The majority of you, 57 percent say you prefer electronic voting with paper receipts. Thanks for being with us. Please join us tomorrow. Our special report on the Middle Class Squeeze, we'll take a look at Senator Kerry's plans to protect Social Security benefits.

For all of us here, good night from New York. Anderson Cooper 360 coming up next.

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


Aired July 29, 2004 - 18:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LOU DOBBS, HOST: Tonight Senator John Kerry will accept the Democratic Party's presidential nomination and try to convince Americans he should move into the White House.
One of the leading young stars in the Democratic Party, Congressman Harold Ford of Tennessee, will be here and Congressman Luis Gutierrez will tell us what the Kerry/Edwards ticket offers Hispanics that Bush/Cheney doesn't.

Also tonight, the rising cost of health care. Senator Kerry says he has a plan to help middle class Americans, but would it work?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: And we have a level of government service that we expect and have provided and that eventually needs to be paid for.

(END VIDEO CLIP)

DOBBS: And new concerns about the future of our democracy after computer crashes destroy electronic voting records in Florida.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The American public wants one thing and this is not a partisan request. They want their votes to count.

(END VIDEO CLIP)

DOBBS: Tonight, our democracy in jeopardy, a special report.

ANNOUNCER: This is LOU DOBBS TONIGHT for Thursday, July 29. Here now for an hour of news, debate and opinion is Lou Dobbs.

DOBBS: Good evening. Tonight Senator John Kerry delivers the most important speech of his career as he accepts the Democratic Party's presidential nomination. Senator Kerry will try to convince Americans he is a strong leader who is more qualified than President Bush to be commander-in-chief. We begin our coverage tonight with Joe Johns on the floor of the Democratic National Convention in Boston -- Joe.

JOE JOHNS, CNN CORRESPONDENT: Lou, Governor Bill Richardson at the podium right now, but tonight is John Kerry's biggest moment so far, he is expected to speak directly to the issue of military experience and fitness to serve as commander-in-chief. Senator Kerry did appear at the podium earlier today just to get a feel of the setup. We have some pictures of that. His remarks are expected to range from personal reflections to policy positions.

We have an advanced graphic to give you some of the information on one of the quotes he's expected to say. "I defended this country as a young man, and I will continue to defend it as president. Let there be no mistake, I will never hesitate to use force when it is required. Any attack will be met with a swift and certain response. I will never give any nation or international institution a veto over our national security, and I will build a stronger American military."

Expectations are high here in the Fleet Center for his speech this evening. People say they want Kerry to tell a personal story, show some warmth. One delegate told me this afternoon -- quote -- "We want to hear the pulse of his heart." Others, though, are trying to lower expectations. They say, well, Kerry may not necessarily be the warmest person, he is certainly, they say, a competent person.

Lou, back to you.

DOBBS: Joe, thank you very much. Joe Johns reporting from Boston.

One of the senator's biggest challenges tonight, of course, will be to win over the undecided voter. Senator Kerry will try, among other things, to erase doubts that he has the strength of character necessary to win the global war against radical Islamist terrorism.

Bill Schneider has the report -- Bill.

BILL SCHNEIDER, SENIOR POLITICAL ANALYST: Well, Lou, you know like the old saying goes, you never get a second chance to make a first impression. Well for John Kerry, his first chance comes tonight. And because, surprisingly, a lot of voters say they don't know much about him.

(BEGIN VIDEOTAPE)

SCHNEIDER (voice-over): What do voters see as John Kerry's strengths? Several polls have asked people whether different qualities apply more to Kerry or to George W. Bush. Voters say Kerry cares about people like themselves and he understands their problems, at least more than President Bush does. That's empathy. Kerry? Empathy? He's supposed to be a New England partition, aloof and distant. But he's also a Democrat. For Democrats, empathy is a given.

BARACK OBAMA (D), SENATORIAL CANDIDATE: A belief that we're all connected as one people. If there is a child on the south side of Chicago who can't read, that matters to me even if it's not my child.

SCHNEIDER: Kerry's weaknesses, not as strong or decisive. So far, others have been pleading Kerry's case.

SEN. JOHN EDWARDS (D), V.P. CANDIDATE: Decisive, strong -- is this not what we need in a commander-in-chief?

SCHNEIDER: Tonight Kerry has to make the case for himself. Steadiness is another Kerry weakness. The Republican Party has just released a video detailing Kerry's support for the war in Iraq.

SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: We have to be prepared to go the full distance, which is to do everything possible to disrupt his regime and to encourage the forces of democracy.

SCHNEIDER: And his opposition to it.

UNIDENTIFIED MALE: Are you one of the anti-war candidates?

KERRY: I am, yes.

SCHNEIDER: Tonight voters will be listening closely to hear exactly what Kerry's position is on Iraq. Just one, please. Another Kerry weakness, voters don't really know him, but they like President Bush. Some famous filmmakers like Steven Spielberg will try to change that tonight.

UNIDENTIFIED FEMALE: He really cares about fairness.

UNIDENTIFIED MALE: I respect him. He's got a big heart.

UNIDENTIFIED MALE: He's a tough customer.

UNIDENTIFIED MALE: John's got a very deep sense of family.

(END VIDEOTAPE)

SCHNEIDER: Now, Lou, here is a surprise. When it comes to having the right experience for the job, people say they see Kerry as the equal of Bush, and Bush is the president of the United States. That's what his military experience has done for him -- Lou.

DOBBS: Bill, that's fascinating, the challenge before the senator. Let me ask you about this quote that Joe Johns just reported from the speech. Any attack will be met by a swift and certain response. Is there any significance in that language that you see that is worthy of analysis here? "Any attack will be met with a swift and certain response." Is that, in your judgment, a criticism of President Bush? Is it a repudiation of peremptory actions by the United States?

SCHNEIDER: No, I think what he's trying to say is I'll do the same thing that you know President Bush will do. If the United States is attacked I will respond, just like President Bush. And, in fact, he has said on other occasions, and he may repeat tonight, that he does believe in a preemptive strike if there is a sure and certain threat. But he says the intelligence must be decisive, and he does not believe it was decisive in Iraq.

DOBBS: Bill Schneider, thank you very much.

Senator Kerry called his running mate, Senator John Edwards, last night, called him to praise his convention speech. The vice presidential candidate today spent much of his time meeting with hundreds of delegates from Mississippi, Alabama, and his home state of North Carolina. Senator Edwards encouraged those delegates to stay active in the campaign. He and Senator Kerry tomorrow begin a cross- country campaign tour that will take them to 21 states.

They will begin in three important battleground states, Pennsylvania, West Virginia, and Ohio. Republicans were quick to respond to Senator Edwards' speech last night and to launch a preemptive attack against Senator Kerry before his address tonight. The Republican criticism was led by former New York Mayor Rudy Giuliani, a politician who personified strong leadership following the September 11 attacks.

Dana Bash reports from Boston.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Gentlemen, please welcome America's mayor, the Honorable Rudy Giuliani.

(APPLAUSE)

DANA BASH, CNN CORRESPONDENT (voice-over): GOP spinners saved this one for last. The popular politician on the front lines of 9/11 saying John Kerry's not up to the challenge.

RUDY GIULIANI, FORMER MAYOR OF NEW YORK: What we need is a strong, principled leader who is going to stand up for what is needed when it is popular and when it is unpopular And that's president George Bush.

UNIDENTIFIED MALE: And America...

BASH: Oh, and he got the talking points on the Democrats' Convention speeches too.

GIULIANI: Reinvention convention.

BASH: Also in the GOP lineup, someone who knows what it's like to run against the Democratic nominee.

UNIDENTIFIED MALE: He can be a master at the art of changing the subject.

BASH: Bill Weld lost a close 1996 race for Kerry's Senate seat. He coined a new phrase for what team Bush calls Kerry's flip-flops.

WILLIAM WELD, FMR. GOV. OF MASSACHUSETTS: I would call analysis paralysis, seeing so many sides of an issue that it's difficult to make a decision and get on with it, which is something in government sometimes you simply have to do.

BASH: But Weld had a warning for Mr. Bush too. He had eight high profile debates with Senator Kerry and says he's hard to pin down, hard to beat.

WELD: Nobody better, and the senator is very articulate. I think it's an uphill fight against John Kerry in a televised debate.

BASH: Before the fall debates, though, Republicans will hold their convention. Giuliani and other moderates will have the spotlight. So given the president's recent appeal to cultural conservatives, look for Democrats to throw Republicans' extreme makeover line right back at them.

GIULIANI: I haven't had a makeover. You've noticed no makeover. I'll be the same as I've always been, and so will all the speakers. It will show the broad range of the Republican Party.

(END VIDEOTAPE)

BASH: And after his campaign attacked John Kerry here all week long, the president hits the campaign trail first thing in the morning with a retooled stump speech. It's the start of what aides call a four-week strategy ending at his convention to unveil some broad new themes if he's reelected -- Lou.

DOBBS: It's under way. Dana Bash, thank you.

All this week, Democrats have been showcasing the younger stars of the party. One of them is my next guest, Congressman Harold Ford of Tennessee. Here's part of what he said to the convention yesterday.

(BEGIN VIDEO CLIP)

REP. HAROLD FORD (D), TENNESSEE: For the past four years, we have been offered the wrong set of answers to a daunting new set of challenges. We have been offered hardheaded stubbornness when boldness and imagination was needed. We could spend hours detailing these failures, but Americans who have seen their wages decline, families grow, and prices rise all know we need a change.

(END VIDEO CLIP)

DOBBS: Congressman Harold Ford joins me now from the Fleet Center in Boston. Congressman, good to have you with us.

FORD: It's a very loud Fleet Center. Good evening. Good to see you, Mr. Dobbs.

DOBBS: And I hope you can hear me over the rising noise there in the convention center. First, Congressman, the stubborn stubbornness you referred to last night, would you give us a few particulars. What were you talking about there?

FORD: You know, I supported the use of force, if needed, in Iraq, and I thought the president would use it adequately and appropriately. We can differ on that. But what is clear, after finding Saddam Hussein, is that we had no post-war strategy. And if indeed the White House called what is having a post-war strategy, I would contend we need a change. And the stubbornness and the ideological nature of many in this administration, I think, has caused them not to want to change.

Two, when it comes to the economy, the president promised after his tax cuts passed some year and a half or two years ago that the economy would boom, high paying jobs would come, and indeed all Americans would enjoy in the prosperity. That has not happened. In many ways, Americans are crying out for a change, and this president, for whatever reason, won't.

And last, this 9/11 commission, Mr. Dobbs, which has made, I think, some outstanding recommendations by a vote of 10-0 in Washington we're not used to unanimous votes, particularly when Democrats and Republicans are voting. But all 10 members voted in favor of recommendations to it at a minimum to create one intelligence czar with three deputies. This president is allowing those set of recommendations to sit and gather dust in many ways.

And one thing is clear, John Kerry has already made clear that he and John Edwards will implement immediately the recommendations made by this commission. So I think you could go down a list of things. But those would be the three most important, I think, in the minds of many across this country.

DOBBS: Congressman, you referred to the wages. And if I may, Congressman, invite you to call me Lou. It's necessary in requisite...

FORD: It's my southern manners. I apologize.

DOBBS: Well I apologize, but it's requisite that I address you as Congressman. Please, please call me Lou.

FORD: You call me Harold.

DOBBS: Thank you, sir. The fact is we just have declined, the Internal Revenue Service reporting wages declined by 10 percent over the past two years for Americans. What is specifically Senator Kerry going to do to reverse that? In your honest, best judgment, is there anything a president can do in the short order to reverse that?

FORD: I think it's a great question. First off, we've seen deficits rise under President Bush. As a matter of fact, the largest in history. We've got to curb our spending, and we even have to revisit some of the tax policies that have passed over the years. I think we should replace some of President Bush's tax cuts with a different and new round of tax cuts, perhaps eliminating taxes for those who earn $50,000 a year or less, eliminating federal taxes for businesses with earnings of less than $2.5 million a year if they provide health care for their workers.

And last, we provide a tax cut -- I know something dear to you, Mr. Dobbs, for those companies in America, small and large, who create jobs here in America. By doing these things, we not only put people back to work, but we free up resources and free up dollars for business people, for families, and for others across this country. And I think we've relieved some of the pressure on the deficit and relieved some of the pressure on price increases in this nation, not to mention a real energy plan that would help to lower gas prices over a period of time.

DOBBS: Congressman, what are you -- are you planning to do anything specifically and beyond the norm in supporting the Democratic ticket, Senator Kerry, Senator Edwards.

FORD: I'm delighted to be a national co-chair in this campaign. I joined it back in April. I was lucky. John Kerry was like an Internet stock. He was way up. He dropped. And unlike an Internet stock, he came right back up. I'm here to serve this team, and I look forward to a change in direction. I'm going to do whatever they ask me to do. I imagine I will continue to travel the country and continue to speak with you and many others about the greatness of this ticket.

DOBBS: Well, we look forward to the dialogue. We appreciate you being with us tonight, Congressman Harold Ford.

FORD: Can I say one last thing? I think you will hear that boldness and imagination that I spoke about yesterday in John Kerry's speech. And any questions about him being a flip-flopper, I think he will retire many of those concerns tonight. This is going to be a hard-fought campaign, and I can assure you that John Kerry and John Edwards both are ready for what will be a very spirited, interesting, and what we hope will be a victorious (UNINTELLIGIBLE).

DOBBS: Congressman Ford, thank you.

More convention coverage is ahead here. "Washington Post" columnist E.J. Dionne joins me. We'll be talking from Boston about Senator Kerry's speech tonight, his critically important speech.

And health care reform at the center of the Kerry/Edwards campaign, but do the Democrats have a real plan that will really help middle class Americans? We'll have a special report that intends to answer that question.

And new concerns tonight about the reliability of electronic voting after an astonishing computer failure in Florida. "Democracy At Risk" coming right up.

(COMMERCIAL BREAK)

DOBBS: Federal investigators tonight are trying to determine whether a woman taken into custody in Texas is involved in terrorist attacks. The Department of Homeland Security is calling the woman a person of interest. She was carrying an itinerary that suggests she had traveled from South Africa to the United Arab Emirates to London then to Mexico City, where she crossed the U.S./Mexican border illegally.

A man wanted for questioning in the California baby food scare says he needs a good lawyer. A man who identified himself as Charles Dewey Cage called "The Orange County Register" newspaper last night to deny any involvement. Authorities yesterday announced that trace amounts of the deadly poison ricin were found in jars of Gerber baby food in Irvine. The two babies who ate the food were not seriously injured. No arrests have been made, and police say the jars found were the only ones contaminated. Gerber has assured its customers that the tampering took place after production and distribution.

Returning now to our top story, the Democratic National Convention, my next guest says Senator Kerry tonight must appear both tough and likable to convince voters he should replace President Bush in the White House. E.J. Dionne, columnist for "The Washington Post" joining us from the Fleet Center in Boston.

E.J., good to have you here.

E.J. DIONNE, "THE WASHINGTON POST": Always good to be with you, Lou.

DOBBS: E.J., Senator Kerry has a huge job, a critical job tonight to project himself before the American people as the one to replace George W. Bush. What are your thoughts?

DIONNE: Well, I guess your view of how big the job is what your view is about how much trouble President Bush is in. I think that there are a lot of voters out there who are on the fence ready to throw the president out of power, but they can't quite get to John Kerry. I found that especially to be the case among moderate to conservative voters.

What Kerry has to do is to show those voters inclined to have Bush go that they can trust him in the war on terror, and this speech is going to have a lot on foreign policy in it, a lot on terrorism in it, and he also has to be somebody that they can live with for four years. John Edwards is known for his big smile. John Kerry has this reputation for being rather stiff. I think all that begins to work in his favor because all of us talking heads have said for days that, while Kerry isn't all that impressive as a speaker -- and I think he's going to live up to and go way beyond those expectations.

DOBBS: This -- as I hear you, E.J., you're suggesting that Senator Kerry's job may be made somewhat easier by the fact that, as often as wags would have it, it's a referendum on the performance of the incumbent. Is there -- part of that in what you're suggesting?

DIONNE: Exactly. I mean if you go back to the 1980 election, the race between Jimmy Carter and Ronald Reagan stayed very close. Reagan got in the race in a big way by giving a really great speech at the 1980 Republican Convention, but he still didn't catch up to Carter. And it wasn't until the last week of the campaign, after the primaries, that Reagan just surged past Carter. Americans had made a collective decision that they really wanted to get rid of the president then, but they hadn't quite decided they trusted Reagan. I think trust is the key word tonight for John Kerry.

DOBBS: That's interesting, E.J., because trust among the other issues and words that were tested in CNN's polling, as Bill Schneider reported here earlier, was strength, was decisiveness, was likability. Trust was not amongst those words, and yet you say it is critical. How does he, Senator Kerry, build that bridge of trust between himself and particularly the undecided voter? DIONNE: Well, I suppose we can -- I could play with the words and say they trust him to be strong enough, but I think it's that they need to believe that he shares enough of what they have in common. I think he has another interesting challenge tonight, which is there are a lot of states where Democrats hope to win because a lot of blue- collar people especially have lost their jobs, are worried about their health care. Ohio probably being the most important.

The Kerry folks have been trying to find the right balance in this speech. They know it's the year of 9/11, but a lot of those downscale voters are in the end going to vote on economics. And so they've calibrated this speech to make sure they have enough on terrorism and war to reassure voters that he can pass that threshold, but they want to win over those voters who have suffered in this economy by talking enough about economics and health care. You're going to hear a lot of economics, a lot of health care, a lot about tax fairness and growing the economy tonight.

DOBBS: E.J. Dionne, we thank you.

DIONNE: Very good to be with you, Lou. Thank you.

DOBBS: Still ahead here, the "Middle Class Squeeze". Senator Kerry says his health care plan will help working Americans save money. Critics, however, say the plan is nearly impossible to pay for. Our special report is next.

And then three of the country's top political journalists join us with their observations from the floor of the convention and the booth of the convention. We'll be talking with Karen Tumulty of "TIME" magazine, Ron Brownstein, "Los Angeles Times", Roger Simon of "U.S. News & World Report" next.

And our special report, "Democracy At Risk". Almost three months before the election, new concerns tonight about the integrity of electronic voting machines. We'll have that story and a great deal more still ahead here tonight.

(COMMERCIAL BREAK)

DOBBS: Health care has emerged as a hot topic of the Democratic National Convention. Over the past three days, Democratic speakers have used the words health care more than 160 times, more than any of the other key words. Despite all of the talk, Democrats are saying little about who will pay to help Americans secure good health care.

Louise Schiavone has our report.

(BEGIN VIDEOTAPE)

LOUISE SCHIAVONE, CNN CORRESPONDENT (voice-over): There's nothing more fundamental in American politics than the campaign promise.

EDWARDS: We have a plan that will offer all Americans the same health care that your senator has. We can give you tax breaks to help you pay for your health care.

SCHIAVONE: Sounds good, but with the federal deficit closing in on half a trillion dollars and standing by a promise to preserve middle class tax breaks wouldn't that be expensive?

ROBERT BIXBY, CONCORD COALITION: In fact, that was one of the criticisms that candidate John Edwards had of the Kerry campaign, was that the health care -- that we couldn't afford the health care plan. I think it is possibly around $900 billion over 10 years. They would then try to make some savings, but you don't know whether the savings would actually happen.

SCHIAVONE: The Kerry campaign projects its reforms will cost more than $650 billion over 10 years. Kerry would cover 27 million of the 40 million uninsured Americans. Medicaid would expand, still aimed at the neediest Americans. Small businesses and individuals would get tax credits to buy into either private plans or the federal health plan.

And when annual catastrophic health care costs exceed $50,000 the federal government would step in to help. But 13 million would still have no health care insurance under the Kerry plan. Even the most dispassionate analysts have a hard time making the Kerry numbers add up without more tax revenue or spending cuts or both.

CLINT STRETCH, DELOITTE & TOUCHE: They have a level of government service that we expect and want to have provided and that eventually needs to be paid for.

SCHIAVONE: Democrats argue Americans are already paying for a weak health care system.

REP. JOHN DINGELL (D), MICHIGAN: We're paying it through other mechanisms such as charity being charity and things of that kind, oftentimes enforced charity by hospitals and health care providers. We're also providing it in some instances by government, federal state or local.

SCHIAVONE: When a CNN/"USA Today" pre-convention poll asked, who would better handle health care issues, 54 percent said John Kerry. Thirty-seven percent said George Bush.

(END VIDEOTAPE)

SCHIAVONE: Lou, Democrats are convinced that higher taxes on the rich will forestall a deficit crisis. But budget hawks warn that as health costs continue to spiral and the federal bill comes due, everyone's taxes will rise -- Lou.

DOBBS: Louise, thank you. Louise Schiavone from Boston.

Three of this nation's top political journalists have been sharing their insights on the Democratic Convention with us throughout the week. They join us again tonight from the Fleet Center in Boston -- Ron Brownstein, national political correspondent from the "L.A. Times", Karen Tumulty, national political correspondent "TIME" magazine, Roger Simon, political editor, "U.S. News & World Report", who has returned to Washington D.C., apparently, for other coverage. Good to have you with us Roger, Karen, Ron.

Let me begin with you Karen. How critical -- one assumes that this is the most important speech of Kerry's life. Is there any reason to think otherwise?

KAREN TUMULTY, "TIME MAGAZINE": Oh, absolutely, Lou. I mean, this is easily the -- it's the pivot point. It's going to set the tone for the rest of the campaign. And for a lot of Americans, this is really going to be the very first impression that they get of John Kerry. As much as we've been talking about him all these months, a lot of people are just beginning to tune into this campaign right now.

DOBBS: Ron, the idea that Senator Kerry tonight, there'd been some suggestion from various quarters that he will have some surprises. Have you heard anything about that?

RON BROWNSTEIN, "LOS ANGELES TIMES": Well, Lou, it's a little hard to hear you right now. The band has just worked themselves up.

But I talked to a number of staffers, senior staffers, yesterday on one key question, and they all insisted that there was not going to be a significant new departure on Iraq, which may be the issue that people are waiting for. They said, of course, that could change at the last minute.

But to me, what they're saying is what they're hoping to do in this speech is give people a sense of who he is through his biography, a better sense of what his plan is, both domestic and foreign. Until John Edwards last night, that has hardly come up.

And, then most importantly, Lou, to fuse the two together and to try to argue that the agenda is the outgrowth of the life story, because that really is important for candidates to give it more credibility. And voters tend not to believe that candidates are sincere about what they're saying. If you can make the argument that it's an outgrowth of what he's been fighting for his whole life, they think that is the key tonight.

DOBBS: Roger, in watching all of the proceedings this week, as we will be watching the proceedings as the Republicans convene in New York, I couldn't help but be struck by the idea that there's a lot of preaching to the choir, if you will.

Will this speech tonight really be an opportunity to speak to the undecided, or is this more about the faithful?

ROGER SIMON, "U.S.NEWS AND WORLD REPORT": It's got to be about both. Neither candidate has really locked up the base, especially John Kerry. John Kerry has to worry about a party that knows why it hates George Bush, and they really are united in their dislike for the President. But many Democrats have not yet given their hearts to John Kerry

And this is what John Kerry has to do in his speech tonight. He's got to talk to both groups. He's got to win over members of his party then he's got to reach out beyond party lines to people who are genuinely swing voters -- even though those numbers are very small, they decide elections -- and convince them that he is a stronger, more competent protector of the homeland, a stronger more competent protector of the economy, stronger more competent person capable of forging the international alliances that President Bush has been unable to forge.

DOBBS: Is it your judgment, Ron, that Senator Kerry can accomplish all of this, or is this simply too tall an order? My gosh, as one talks about managing expectations here, there's a tremendous burden on the Senator.

And, I have to tell you candidly, I can't recall the acceptances speeches of President Bush or President Clinton through two conventions. That may have something more to do with my long-term memory than the importance of the matter, but what do you think?

BROWNSTEIN: Well, Lou, I lost a little of that with the -- as I say, with the band here.

DOBBS: Would you tell that band to just turn it down a bit?

BROWNSTEIN: But you know, in a way -- yes. Can we get them down? Maybe they're advancing for the Springsteen rumor.

In a way, the challenge for Kerry, I think, has been raised by the first three nights -- there they go. So much has been made of presenting him as a strong, steady leader under fire, who stands in the boat in the face of enemy fire and makes life and death decisions that saves men's lives. He has to live up to that frame that has been built.

You know, last night, John Edwards had a speech that read great on paper, but it probably was not his most effective performance. I mean, he rushed through a lot of it and in the portions of national security, I'm not sure he projected the command that voters want in these times.

And I think the same challenge is there for Kerry. Is he going to be, in the flesh, the person that America has been promised over and over again these past three nights?

DOBBS: Karen?

TUMULTY: Well, he does have one benefit going for him, and it's the reverse of what Senator Edwards had last night, which is a reputation as a rather, shall we say, uninspiring speaker.

So the bar in some ways, at least stylistically, is going to be a lot lower for Senator Kerry even than it was for Senator Edwards last night. But I absolutely agree the first thing that has to translate here is strength and purpose; a sense that he knows what he wants to do.

Because to the degree he has been hit at all with all these Bush ads, it is as a waffler, as somebody who doesn't know his own values and his own mind about things. And so that is the secondary perception that he is up against tonight.

BROWNSTEIN: Can I add a quick point, Lou, very quickly?

DOBBS: Sure.

BROWNSTEIN: The hole in the doughnut at this convention is what John Kerry was doing between Vietnam and today. They've made almost no progress at illuminating his Senate career or trying to argue that in the Senate he has displayed the same qualities that they are projecting from Vietnam, the kind of steadfastness and resolve.

Republicans want to argue that what you really need to know about John Kerry as commander-in-chief isn't learned in the Mekong Delta, it's learned in the U.S. Senate. It's the opposite lesson. It's not that he stood under fire; it's that when the going got tough, he scattered. He was all over the place. He was for the war; he was against the war, for No Child Left Behind and against it.

So, in some ways, I think one of the things they've done least effectively in this convention is illuminate how the values that they saw him in Vietnam -- or projecting on him in Vietnam have informed the rest of his career. I would put that near the top of the list for tonight.

DOBBS: Roger, the last question. Is it really rational to expect John Kerry to deal with the attack ads of the Republican Party or, for that matter, when Democrats attacked George Bush, he with a speech? It seems like an excessively tall order now to try to counter that with a speech.

SIMON: There are huge expectations, as you correctly pointed out, Lou, for this speech. Different factions of the party, different advisers to Senator Kerry, all expect him to do different things.

But basically, when viewers turn off their TVs tonight after watching CNN until 4:00 a.m. or however long it's on, they've got to be able to imagine John Kerry in the Oval Office leading this nation in a very difficult time ahead. And if John Kerry can project that single image of being able to imagine him as President, then he will have succeeded.

DOBBS: I said last question; I fibbed. I want to ask you this: as we were winding down in this convention -- it would be shameful not to ask this question -- as compared to other conventions has this been well organized? Has it achieved the purpose the Democratic Committee wanted? Has it been well done, in your minds? Karen?

TUMULTY: Well, for those of us who are looking for news in a convention it's been too well-organized. When the biggest story out of a convention is a slip of the lip by the first lady-in-waiting, you know that it is a well-organized, well-scripted convention.

DOBBS: You saw that as a slip of the lip. It sounded rather purposeful to me. Ron, we thank you very much. Karen, we're going to have to break away from you. We really appreciate your thoughts, your insight. Roger Simon, thank you.

TUMULTY: Thank you.

DOBBS: Still ahead here: our democracy at risk. New concerns tonight about electronic voting.

That, after records from a Florida election two years ago have disappeared. We'll have that special report for you.

And the race for the White House and the impact of the Hispanic vote. The Hispanic vote is expected to be bigger than ever. I'll be talking with the head of the Congressional Hispanic Caucus Immigration Task Force, Congressman Luis Gutierrez.

And we'll have a spectacular sight for you and the longstanding tradition of the Chincoteague ponies. All of that, and more, still ahead hear tonight. Stay with us.

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DOBBS: Rising concerns tonight about the reliability of electronic voting machines just three months before the presidential election.

The most recent problem, computer crashes, erased nearly all of the electronic records from a gubernatorial primary in Florida. Critics say the e-voting machines are simply a threat to this country's democracy. Bill Tucker reports.

BILL TUCKER, CNN REPORTER: It's been four years since the last presidential election. Gone are the threats of hanging chads, replaced by fears of missing votes cast on electronic touch screens, leaving no paper trail. Concern over just that issue brought a handful of Democrats together in Boston.

(BEGIN VIDEO CLIP)

KEVIN SHELLEY, CALIFORNIA SECRETARY OF STATE: The American public wants one think and this is not a partisan request. They want their votes to count.

(END VIDEO CLIP)

TUCKER: When it comes to voting, most people don't trust computers. Election problems in various states such as Ohio, Virginia, Texas, California, and Florida bear them out, justifying a growing unease with electronic voting.

(BEGIN VIDEO CLIP)

PATRICK BASHAM, CATO INSTITUTE: I think we have compromised our confidence. But we've done that in large part because after the last election we -- you know, we set the bar too high too soon.

(END VIDEO CLIP) TUCKER: Is the bar too high? It's a simple demand: a receipt for a vote. After all, we get them when we buy groceries, buy gas for the car; go to the ATM, why not when we vote?

(BEGIN VIDEO CLIP)

HOWARD SIMON, FLORIDA ACLU: We're very concerned that, with all of the problems that are being revealed about the touch screen electronic machines, the absence of an independent basis in the form of paper; a voter verified paper trail, is going to make it more difficult.

Until the machines can be shown to be error free, then paper may be something we continue to have to rely on.

(END VIDEO CLIP)

TUCKER: Early this year, a study by Johns Hopkins came to this plain conclusion: electronic voting machines must produce a paper receipt so that elections can be audited.

New Jersey Democrat, Rush Holt, has introduced legislation in the House, requiring a paper trial of votes. Over in the Senate, Nevada Republican John Insen has introduced similar legislation.

And it can be done. Nevada will have a paper trail this November. The biggest reason it's not done more widely, Lou, is cost.

DOBBS: Well, the cost of not providing a reliable system for voting, in which the American voters have confidence, is quite a bit higher. Bill Tucker, thank you very much.

That brings us to the subject of tonight's poll. The question: which is your preference for voting in the next presidential election: paper ballots, absentee ballot, electronic voting or electronic voting with paper receipts? Please cast your vote at cnn.com/Lou. We'll have the results coming right up.

Now, let's take a look at some of your thoughts; many of you e- mailing us with your concerns about electronic voting.

Carolina Ganter of Potsville, Pennsylvania: "Lou, I think it's outrageous that every voter machine does not have a paper trail. We take the time to drive to the polls and need to know that our votes are counted. Can you imagine if our banking system had no double- check?"

Thomas Andreas of Phoenix, Arizona: "Lou, with all of the problems concerning the electronic voting machines in some states, an absentee ballot is the only way to have a paper record of your vote, and may be the only way to ensure your vote was properly counted."

We love hearing from you. E-mail us at loudobbs@cnn.com.

The Chincoteague Volunteer Fire Company in Virginia, today, is auctioning off ponies that took part in a longstanding tradition, as tens of thousands of people turned out yesterday on Chincoteague Island to watch the annual pony swim.

More than 125 ponies made the trek through the water. So-called salt water cowboys have been driving ponies across the Assateague Channel since the 1920s. The pony swim was made famous by Marguerite Henry's 1947 children's classic, "Misty of Chincoteague."

Still ahead here: the impact; the influence of Hispanic voters in this election. Congressman Luis Gutierrez, Chair of the Congressional Hispanic Caucus Immigration Task Force is our next guest.

And disturbing information from the IRS which shows the income of average Americans falling while corporate heads are making more than ever. We'll have that report.

And a major clean-up in Texas tonight. More than a foot of rain fell in some parts of northern Texas. That story and more still ahead here. Please stay with us.

(COMMERCIAL BREAK)

DOBBS: My guest tonight says the Kerry-Edwards ticket will do far more for Hispanics in this country than President Bush and Vice President Cheney.

Congressman Luis Gutierrez of Illinois is Chairman of the Congressional Hispanic Caucus Immigration Task Force. He joins us tonight from Boston. Congressman, good to have you with us.

ILLINOIS CONGRESSMAN LUIS GUTIERREZ, CHAIRMAN OF THE CONGRESSIONAL HISPANIC CAUCUS IMMIGRATION TASK FORCE: Thank you. Nice to be with you, Lou.

DOBBS: I hope you can hear me as the noise is building there at the convention center.

GUTTIERREZ: I can.

DOBBS: The President has introduced an immigration policy, has established himself clearly as a friend of the Hispanic community. What is it that Senator Kerry and Senator Edwards will do for Hispanics in this country, as they consider their vote that the current administration does not or has not?

GUTIERREZ: Well, I think, on the immigration level, we were filled with a lot of hope and great expectations when on January 7th the President spoke about a new initiative to take the 8 to 10 million undocumented workers, many of whom are from Latin American countries, and to incorporate them fully into our society and take them out of the darkness and the shadows.

But Lou, quite honestly, he hasn't done anything. The rhetoric has not been matched with any merits on the house floor and any legislative proposal. We know that our team, the Kerry-Edwards team, has in the first 100 days made a commitment to making that legislative initiative a reality in the Congress of the United States. I think -- yes, sir?

DOBBS: I'm sorry. Just to interrupt you, but you know, according to the most recent Pugh research, immigration ranks last among the principal issues; the major issues for Hispanic and Latino voters in this country. Why is that your focus?

GUTIERREZ: Well, because I wanted to give you a special area which the posters always seem to miss, Lou. I think what we need to understand is that my daughter goes to school with children who, when they graduate, can't go on to college even though they're class valedictorian.

Every day in my community, Lou, this actually happens. There are American citizens whose wives are being deported because they can't fix their papers. We have a huge population that works in our agricultural and, you know, the agricultural industry wants a bill passed.

We need a bill passed so that those agricultural workers can have decency in pay and in terms of the work conditions that they have to work on. And yet we haven't seen any of those.

So it may not poll well, but I'll tell you, it's a very important emotional issue, and it's something at that strikes at heart and at the soul of our community.

DOBBS: At the community. As you know, Congressman, the fact is that the Hispanic vote in this country is not homogeneous, it is heterogeneous. It is diffused.

And a number of Hispanics, if we can put a number, approximating 8 to 12 million illegal aliens don't have the right to vote. Immigration is important, as you put it, to the community. But ultimately, the community is the nation.

And immigration reform on the part of -- to be put forward by Senator Kerry, we've heard nothing about it, have you?

GUTIERREZ: Yes, we have talked to the Kerry campaign. And if you look at the Democratic Party platform, it is very, very clear that they have indicated that there is going to be a road to permanency, to legalization of their status here in this country. And that's an important objective.

I know, Lou, that it doesn't poll well. I know that because I have a lot of arguments with the campaigns and with the Democratic Party structure. But if you watch Hispanic news, if you watch Univision, if you watch Telemundo, if you listen to the radio...

DOBBS: I watch Univision.

GUTIERREZ: Then you know they start the broadcast and many times end the broadcast with immigration as a key, vital issue that impacts our community.

Now, I will agree with you that, if you look, it's about jobs. It's about fair taxes. It's about decent schools. And we can have a debate about those issues because truly the Latino vote is about America. It's about the greater issues. It's about us being incorporated fully into this society.

DOBBS: And that is a very important issue for all Americans. Luis Gutierrez, Congressman, state of Illinois, we thank you and wish you a successful convention tonight as you watch your nominee accept the party's nomination.

GUTIERREZ: Thank you, Lou, for having me.

DOBBS: Thank you.

A reminder now to vote in our poll tonight. The question, which is your preference for voting in the next presidential election: paper ballots, absentee ballots, electronic voting or electronic voting with paper receipts. Cast your vote at cnn.com/Lou. We'll have the results later in the broadcast.

Coming up next here, the salaries of most Americans are actually going down. But one group of Americans is making certain they receive massive raises. We'll have details about responsible corporate governance and equity in economics as we continue. Stay with us.

(COMMERCIAL BREAK)

DOBBS: A disturbing new government report tonight showing Americans' income declining for an unprecedented two straight years. The Internal Revenue Service reporting, adjusted for inflation, that the income of all Americans fell more than 9 percent from 2000 to 2002.

Of course, that does include the period in which the recession was taking place and does not include an important year of economic recovery; nonetheless, disturbing. And at the same time, another report finds that corporate CEOs, well they're making more money than ever. The restraints are off. Christine Romans has the report.

CHRISTINE ROMANS, CNN REPORTER: As corporate CEOs enrich themselves even more, the American worker is struggling to stay even, and many are not succeeding. CEO pay surged an incredible 22 percent last year. That, while their employees' wages rose only 2 percent. In fact, when adjusted for inflation, their pay declined.

(BEGIN VIDEO CLIP)

DAMON SILVERS, AFL-CIO: There is nothing more painful than to hear these numbers in conjunction with what the average American worker, union and nonunion, is experiencing right now.

(END VIDEO CLIP)

ROMANS: The government said year-over-year wage growth is the slowest on record. At the same time, the median CEO salary rose to $4.4 million a year. That means CEOs rake in $85,000 each week while their workers earn $620 a week. CEO watchdogs say boards and executives just don't get it.

(BEGIN VIDEO CLIP)

NELL MINOW, THE CORPORATE LIBRARY: We've had a lot of reforms that require people to hire more lawyers and hire more accountants and check more boxes, but the fact is that as long as the CEOs are still picking the people who set their pay; we're not going to get any better than this.

(END VIDEO CLIP)

ROMANS: Critics say they have no problem if a CEO is paid millions for performance, but too many executives are paid just for having a pulse, handed wads of money by sleeping boards who mistake cutting jobs for real growth.

The window for reform may be closing. The business community is lobbying fiercely against allowing shareholders more control in picking the boards that are paying these CEOs so much. Lou.

DOBBS: Well, that fight is far from over. Christine, thank you. Christine Romans.

From wild salaries to wild weather: tonight nearly 30,000 people in Texas are without power because of severe storms. More than a foot of rain fell on north Texas overnight, triggering flash floods that swept through homes and highways. One man died after his truck hit a utility pole. Tonight a flood watch remains in effect for the entire area, that is, Dallas and north Texas.

Still ahead here: the results of tonight's poll. Stay with us.

(COMMERCIAL BREAK)

DOBBS: The results now of tonight's poll. The majority of you, 57 percent say you prefer electronic voting with paper receipts. Thanks for being with us. Please join us tomorrow. Our special report on the Middle Class Squeeze, we'll take a look at Senator Kerry's plans to protect Social Security benefits.

For all of us here, good night from New York. Anderson Cooper 360 coming up next.

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