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American Morning
Palin Going Rogue and Off Message; Candidates Make a Final Push in Battleground States; Obama to Make Closing Argument in the Campaign; Global Markets Tumble; Jennifer Hudson Offers Reward for Missing Nephew; Early Voting Problems in Several States; Syria Accuses U.S. of Attack
Aired October 27, 2008 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
JOHN ROBERTS, CNN ANCHOR (voice-over): Barnstorming in the battleground.
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: We will win Ohio.
ROBERTS: States swept by Bush in '04. So why is Obama walking all over Republican stomping ground?
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: We cannot let up and we will not let up.
ROBERTS: Sniping, infighting in the McCain campaign?
GOV. SARAH PALIN (R), VICE PRESIDENTIAL CANDIDATE: This whole thing with the wardrobe.
ROBERTS: Diva dilemma?
And Jennifer Hudson's family tragedy. Her mother and brother killed, and an Oscar winner's plea for a missing child. Find him on this AMERICAN MORNING.
(END VIDEO CLIP)
ROBERTS: And good morning. Thanks very much for being with us, Monday, October the 27th. We're into the short strokes now. Just eight days left in this campaign.
KIRAN CHETRY, CNN ANCHOR: Yes, and still a lot going on. And we begin with the "Most Politics in the Morning" with just eight days to go until the election and John McCain down in the polls. It appears there's some finger pointing inside of McCain's campaign.
People close to Sarah Palin are telling CNN that she has been ill-served by McCain aides and is trying to bust free. An adviser to Senator McCain says Palin is "going rogue," called her a diva, saying she takes advice from no one.
Well, Syria is accusing U.S. forces of "serious aggression," saying that four U.S. helicopters crossed the border from Iraq and attacked a civilian building. The state news agency says eight people were killed. The U.S. military says it's investigating. The area of the reported attack is a major route for militant fighters battling U.S. troops in Iraq.
And right now, investors are pulling their money out of the world's financial markets fast. In Asia, Hong Kong starts the week down almost 13 percent. Japan's Nikkei down more than six percent. And in Europe, most of the markets are in strong negative territory.
And Philadelphia right now on the verge of becoming World Series champs. Last night, the Phillies rocked the Tampa Bay Rays 10-2. They now lead the best of seven series three games to one, and are just one game away from winning the city's first major professional sports championship in 25 long years. Game five is tonight in Philadelphia.
ROBERTS: Well, from sports to more of the "Most Politics in the Morning" now. The presidential candidates begin their final full week of campaigning just eight days now left until the election. Latest CNN poll of polls shows Barack Obama leading John McCain by eight points now, 51 to 43 percent. Six percent of voters still say they haven't made up their minds who to vote for yet.
The candidates are going to spend much of the campaign's final days in traditional red states, some of which may be turning blue. Florida, North Carolina, Virginia, Indiana, Missouri and Ohio. Both Barack Obama and John McCain hold rallies in Ohio today. And as CNN's Ed Henry tells us, McCain is predicting a comeback victory amid reports of bitter campaign infighting.
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: John, Kiran, Ohio decided the 2004 presidential race by just two percentage points. Once again, it's close here and once again it could be pivotal.
(BEGIN VIDEOTAPE)
HENRY (voice-over): No Republican has ever won the White House without carrying Ohio. So John McCain, trailing in the Buckeye State, kicked off the final full week of the campaign right here.
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: I don't intend to take that risk. We will win Ohio.
HENRY: No surprise, Barack Obama is coming here Monday as well. There are a shrinking number of battlegrounds both men will hit in the final days.
McCain is heading to Pennsylvania tonight, desperate to win a large Democratic state to offset Obama's expected gains in traditionally Republican states like Virginia. Another must-win for McCain, Florida, with its mother lode of 27 electoral votes. Cindy McCain knocked on doors Sunday in West Palm Beach with Rudy Guiliani before joining her husband in Ohio for the final push, which is focused on charges that taxes will go up if Obama and congressional Democrats get full control of the government.
MCCAIN: We can't let that happen, my friends. We've already seen a preview of their plans. It's pretty simple and unfortunately pretty familiar. Tax and spend.
HENRY: But now McCain has to deal with a new distraction, sniping in his own campaign over running mate Sarah Palin. Several McCain advisers tell CNN they're annoyed by what one aide called Palin going rogue, acting like a diva and going off message.
GOV. SARAH PALIN (R), VICE PRESIDENTIAL CANDIDATE: Make sure that Michigan knows it. We haven't given up there.
HENRY: One example, her decision to tell reporters he disagreed with the campaign's move to pull out of Michigan. A Palin associate fired back she's merely trying to bust free from a botched roll out by McCain advisers. Tensions stoked partly by the handling of the controversy over her wardrobe.
(END VIDEOTAPE)
HENRY: One McCain adviser speculated that Palin is taking care of herself now in case McCain loses to set herself up as the party leader in 2009 and beyond. But Palin's spokeswoman insists she's only focused on helping McCain win next week -- John, Kiran.
ROBERTS: Ed Henry reporting for us this morning. Ed, thanks very much.
And Sarah Palin stepping up her attacks on Barack Obama. On the campaign trail on Sunday, she accused the senator of acting as if the Democrats had already won the race.
(BEGIN VIDEO CLIP)
GOV. SARAH PALIN (R), VICE PRESIDENTIAL CANDIDATE: You get the feeling that the Obama campaign just thinks that this election process is merely a formality. But they've overlooked the minor detail here of the confidence and the trust that they must earn before you would vote for them.
And I know that by judging from the media coverage in all this, it seems that the coronation has already been set. But as for me, and as for John McCain, we don't take any vote for granted. We're not assuming that we have your vote. We're respectfully asking for it in North Carolina.
(END VIDEO CLIP)
ROBERTS: Palin used a basketball analogy to slam dunk Obama saying you have to win the game before you start cutting down the nets.
CHETRY: Well, Barack Obama scoring the endorsement of the largest newspaper in Sarah Palin's home state of Alaska. The "Anchorage Daily News" editorial board says it is Obama who can bring change to Washington. And while the paper praised Palin, it adds that putting her one 72-year-old heartbeat from the presidency is "too risky." The paper goes on to say that Obama "brings far more promise to the office in a time of grave economic crisis. He displays thoughtful analysis, enlists wise counsel and operates with a cool, steady hand."
And today, Barack Obama will deliver what his campaign is calling his closing argument to voters in Ohio. Our Suzanne Malveaux is in Canton this morning with more for us.
Good morning, Suzanne.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Hey, good morning, Kiran. Well, you mentioned you saw Ed say that essentially every Republican that won the White House had to get Ohio first. So Barack Obama wants to make sure that he does not give this state over to John McCain.
What he's doing here, simply by being here is forcing McCain to use precious time and resources to defend his Republican turf. And what we're going to see today is what the campaign is calling a closing argument. Why should he be president? Why does he differ from John McCain and a call for unity?
(BEGIN VIDEOTAPE)
MALVEAUX (voice-over): Sprinting to the finish, Barack Obama in Ohio Monday, a state that is a must-win. Over the weekend, Obama was out west hitting three states that went for George Bush in 2004.
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: I want to help responsible homeowners refinance their mortgages on affordable terms.
MALVEAUX: Nevada, which has the nation's highest foreclosure rate.
OBAMA: Five times the national average. And we're going to put in place a three-month moratorium, give folks the breathing room they need to get back on their feet and work things out with their bank.
MALVEAUX: New Mexico, where Obama leads in the polls.
OBAMA: What we need right now is a real debate about how to fix our economy and help middle class families.
MALVEAUX: And Colorado, where supporters broke attendance records at a Denver rally showing up more than 100,000 strong.
OBAMA: How many people have early voted? That's what I'm talking about. That's what I'm talking about. No point waiting in lines if you don't have to. You know who you're going to vote for.
MALVEAUX: For the end game, it's all about getting out the vote. Here in Colorado, early voting means they're already going to the polls. The campaign is also spending record amounts of money in the final days, unveiling new TV ads targeting John McCain's economic plan.
(BEGIN VIDEO CLIP, OBAMA CAMPAIGN COMMERCIAL)
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: Will our country be better off four years from now?
(END VIDEO CLIP)
MALVEAUX: On the stump, the same message but a new line, ridiculing McCain from distancing himself from George Bush.
OBAMA: John McCain attacking George Bush for his out of hand economic policies is like Dick Cheney attacking George Bush for his go it alone foreign policy. It's like Robin getting mad at Batman.
(END VIDEOTAPE)
MALVEAUX: Kiran, in the next couple of days in the coming days, we're going to see things that we have never seen before. Barack Obama campaigning side by side with former President Bill Clinton that's supposed to take place in Florida. Also, of course, 30 minutes of television time that he's bought in the major networks to address the American people in prime time on Wednesday. And today, what you're going to hear is the beginning of a closing argument making his case to the American people why he should be president -- Kiran.
CHETRY: Suzanne Malveaux for us in Canton, Ohio, this morning. Thanks.
And with just eight days until the election, CNN has reporters all across the battleground states. They'll be covering the issues most important to voters.
And make sure you watch history unfold with the best political team on television, November 4th, election night in America right here on CNN.
ROBERTS: Well, here's one for you. Could Secretary of State Condoleezza Rice be headed to the NFL after leaving the White House? A report on NFL.com says the San Francisco 49ers wants to talk to her about becoming a top team executive and she apparently is ready to listen.
Secretary Rice is a big football fan. She even had designs on the league commissioner's job before Roger Goodell succeeded Paul Tagliabue.
CHETRY: Barack Obama is talking about your taxes saying that you could be paying less than during the Reagan years. But is it true? The truth squad is crunching the numbers.
ROBERTS: And a superstar's urgent plea, how Jennifer Hudson is trying to track down her missing nephew and her family's killer.
Nine minutes now after the hour.
(COMMERCIAL BREAK)
ROBERTS: Eleven and a half minutes after the hour now. Christine Romans joining us with a look at what's happening in stock markets overseas and what could happen today here. Not looking good again.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: One guess, down again, right? Dow futures pointing to a loss of maybe 250 points. We still have a ways to go before the market opens, but you have Asian markets down very, very sharply. And I want to run through those with you because we're seeing some losses and we're getting numb to some of these losses.
But Hong Kong down 12.7 percent. That is a big number for just one day in the stock market. Tokyo down 6.4 percent. That is a 26- year low for Tokyo's Nikkei index and Shanghai down 6.3 percent.
Throughout this route, you've seen Shanghai down more like three and four percent. So a six percent move is big there. Other Asian stock markets plummeting, too. The Philippines down 12 percent. Thailand, Indonesia, you go through the list, and you're just seeing red arrows across the board here.
We're on track in this country worldwide for the worst month for stocks since 1938. That's according to Bloomberg news. You've got stocks here in this country down 25 percent just this month. October has been a real rotten month for U.S. stocks.
$800 trillion of market value lost last week. $800 trillion gone that's in our retirement accounts, that's in our taxable accounts. That's in stock market wealth in this country. And as one of my colleagues called it on Friday, death by a thousand cuts. Every day, 200, 300 point losses.
They're concerned here overnight that the slowdown is deepening. There's not one thing. There's not really one impetus.
CHETRY: That's what I was going to ask you.
ROMANS: Right.
CHETRY: Is there -- are we seeing the credit markets unfreeze and will that change things? Or are we totally done talking about that right now?
ROMANS: The credit market has been thawing. Little by little it has been getting better. But the concern is, is the damage has been done to the world economy and that it's deepening around the world that the expectations for what it's going to look like just didn't factor in how bad it would -- how bad it would be.
Now, there are some things that are happening right now for American consumers that are giving them a little bit relief, and I'm going to have that for you a little bit later on.
ROBERTS: Great. Looking forward to some relief.
ROMANS: Great.
ROBERTS: I think a lot of people just stopped looking. ROMANS: I know. Well, you know, and maybe -- and maybe you should. We've already had such a big move. Is your life different today than it was on Thursday? It really isn't, is it?
ROBERTS: Yes. It could be next Thursday. Fingers crossed. Thanks, Christine.
Finger pointing inside the McCain campaign at Sarah Palin. One McCain aide calls her a diva who won't take advice from anybody while her defenders say she has been mishandled. We're taking you inside the campaign.
CHETRY: And the man who first claimed Barack Obama was a Muslim, now changing his story and he's speaking to CNN. Hear the truth he says he uncovered at 14 minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: Welcome back. Live picture this morning, gorgeous Atlanta skyline courtesy of WSB. Right now, it's 56 degrees, cloudy, but the sun's going to come out a little later and it will warm up by a couple of degrees.
Our Rob Marciano is tracking it all for us this morning. A little Tom Petty for you this morning, Rob?
ROB MARCIANO, AMS METEOROLOGIST: Yes, I like it. Happy Monday. Did you have a good weekend?
CHETRY: Wonderful. How about you?
MARCIANO: Not too shabby. And weather in the southeast and northeast is going to be definitely fall-like, in some cases, winter- like. That shot you saw of Atlanta with a 56-degree temperature, that's pretty much going to be our high. Kiran mentioned it may warm up a couple of degrees, but we've got cold air that's going to drive all the way down to the Gulf of Mexico. And this will swing in to the northeast as well.
Some of this in the form of some rain preceding this cool front. Some of it was pretty heavy.
Go to quick iReport down at Detroit, Michigan -- actually Warren, Michigan. This shot by Steve Teig (ph). This was hail yesterday around 2:00 p.m. A big thunderstorm came through. Penny to marble- sized hail piled up, looked like snow driving down there in Detroit and it's a little bit cooler today.
There will be temperatures that will be cooling off for rain showers across parts of Michigan, and in some cases, a little bit of lake-effect snow. Haven't said that in about six or so months, or more than that.
One to three inches of snow possible across parts of the U.P. of Michigan and northern parts of Wisconsin, mostly wet snow. Temperatures are cold enough for snow but the ground is still kind of warm this time of year; 27 in Bismarck, 29 degrees. These are current temperatures in Sioux Falls, and Des Moines, 36 degrees.
And check out some of the high temperatures down south. Fifty- one for a high in Nashville. It will be 54 degrees. It's actually cooler in Atlanta than it will be in New York City, 56 degrees. And there will be some snow in upstate New York and northern New England going through tomorrow. We'll talk more about that in about, well, about an hour.
Kiran, back up to you.
CHETRY: Wow, 93 in Phoenix. That's the hot spot today. Wow.
MARCIANO: Yes. Let's all head out that way. Sound nice.
CHETRY: Rob, thanks so much.
MARCIANO: All right.
CHETRY: Eighteen minutes after the hour.
ROBERTS: The ground war in the battle for swing states.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: We have 21 phone banks across Virginia like this packed with people calling others making sure that they're voting with our team.
UNIDENTIFIED FEMALE: We're walking more union members, more households. We're talking to more people.
(END VIDEO CLIP)
ROBERTS: Pushing for votes in the final week of the campaign. You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: Twenty-one minutes after the hour now. Let's fast forward to stories that are going to be making news later on today.
A manhunt underway right now for three suspects in a deadly shooting at the University of Central Arkansas. Two people were killed in yesterday's attack. One person has been arrested. Classes at the university have been canceled for today.
Another community in Arkansas raising the stakes in the search for Little Rock anchorwoman Anne Pressly's killer. Her television station is offering a $30,000 reward for information leading to arrest. A makeshift memorial has been set up outside of her home.
A potential breakthrough in the fight against cancer. British researchers say genetically modified tomatoes have prolonged the life of mice who are prone to cancer. The new tomatoes which are purple contain antioxidants found in blueberries and blackberries. Researchers caution though the trials of human beings are a long way away. Unless, of course, you like purple tomatoes then you can start eating them now.
And gas prices keep on falling. According to AAA, the national average for a gallon of regular this morning now $2.68. Nationwide gas prices have plunged 30 percent in the past 40 days.
And that's what we're following for you this morning.
CHETRY: The FBI joining the search for actress Jennifer Hudson's nephew this morning. Seven-year-old Julian King has been missing since Friday, the day Hudson's mother and brother were found shot to death in their home on Chicago's south side.
Here's CNN's Susan Roesgen with the latest on the investigation.
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: Yes, officers, you will start here.
SUSAN ROESGEN, CNN CORRESPONDENT (voice-over): After a weekend with no new leads, Chicago police are going door to door handing out flyers trying to find Jennifer Hudson's nephew, 7-year-old Julian. The star herself is now offering a $100,000 reward for information that leads to his return.
On Friday, a relative found the bodies of Hudson's mother and brother shot to death in the family's home. Neighbors said they heard gunfire in the morning but in a part of town where shootings are not out of the ordinary, the bodies were not discovered until several hours later. And by then, the boy was gone.
JULIA HUDSON, JENNIFER HUDSON'S SISTER: All I ask, I don't care who you are, just let my baby go, please.
ROESGEN: This is the man police are calling a person of interest, identified by family members as William Balfour, the missing boy's stepfather. He's been in custody since Friday night, but police don't have the evidence to charge him. So they're keeping him locked up on a parole violation.
Has the person of interest been able to tell you anything about where the child might be?
JODY WEISS, CHICAGO POLICE: I can't comment on that. That's part of our investigation.
HUDSON: I know he's out there. He's out there. Just let him go. Put him on the side of the street. Just let him go. He'll sit there. Somebody will see him. Actually he'll just sit there and he'll probably cry until somebody comes along.
ROESGEN: Julia Hudson is begging whoever took her son to let him go while her sister Jennifer is using her stardom to plead for the boy's return on her MySpace page. And in front of Hudson's Chicago family home, mourners have left wooden crosses, flowers and teddy bears.
Susan Roesgen, CNN, Chicago.
(END VIDEOTAPE)
CHETRY: And once again, here's Julian King's picture. An AMBER alert remains in effect for the 7-year-old boy. He's described as 4'11", 130 pounds. Police are also searching for a white 1994 Chevy Suburban Illinois license plate X584859.
It's 24 minutes after the hour.
ROBERTS: Rough road ahead. Mapping out McCain's possible path to the White House. We're at the magic wall breaking down the latest polls in the key battleground states.
You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: Twenty-six and a half minutes after the hour. Welcome back to the "Most Politics in the Morning."
Just eight days now until the election. Both John McCain and Barack Obama will be in the battleground states of Ohio and Pennsylvania today. The latest CNN poll of polls shows Obama leading McCain by eight points now, 51 percent to 43 percent, with six percent of voters saying they still haven't made up their minds.
Ed Rollins, Republican strategist and CNN contributor, joins us now to talk about McCain's challenge in these final days.
ED ROLLLINS, REPUBLICAN STRATEGIST: Good morning.
ROBERTS: I was watching Karl Rove on television yesterday. He even, he said, McCain's got a steep hill to climb. Eight days here, final stretch, where does he find himself?
ROLLINS: It's a very steep hill. If he had the money that Obama has and the resources, maybe he could close it. But the problem is he's being outspent five, six to one. They've got a better get out the vote effort. A lot of their voters have already voted. And when you put 100,000 people in a place like they did yesterday in Denver, you know there's an enthusiasm for that campaign.
ROBERTS: You know, David Frum, the former speechwriter for President Bush, of course, famous for coining the phrase "axis of evil" back in the early part of this decade, wrote in the "The Washington Post" yesterday that McCain/Palin has alienated the middle of the country. He wrote, "McCain's awful campaign is having awful consequences down the ballot. I spoke a little while ago to a senior Republican House member who said, "There is not a safe Republican seat in the country, he warned, 'I don't mean that we're going to lose all of them. But we could lose any of them.'"
Frum says that they should adopt a different strategy here on the Republican side of things to publicly say, listen, we've lost the White House even if they don't believe it. Take all the money available, put it into the Senate races and try to prevent the Democrats from getting filibuster-proof majority, maybe even stop them from getting majority in the Senate. Good idea, bad idea?
ROLLINS: It's a good idea if you don't change your message. Your message has to be consistent and that is basically that Barack and the Democrats are going to raise your taxes, have big spending programs again, cut defense by 25 percent as Barney Frank warned of two wars. That's going to be the message.
The critical thing for the McCain team is how do you want to end up your campaign? How do you want to end your public career? Do you want to go out on a happy note? Do you want to go out basically saying what you really believe? And that's what I would argue that they should do.
ROBERTS: This idea that control of both Houses of Congress and the White House for one party would be a bad thing. Is that an argument that can gain traction in this country? Can you with eight days left instill the idea in people's minds that it's not a good thing?
ROLLINS: It's awful hard at this point in time. I think to a certain extent people are willing to take a change. If the change is moving in one direction, they're not so convinced that Barack and his team can't do a better job than the Republicans have done over the last eight years.
ROBERTS: Of course, the other big story over the weekend was apparently the split between the McCain camp and the Palin camp. Some grumblings from inside that she's not listening to them. One aide told CNN, "She's a diva. She takes no advice from anyone. She is playing for her own future and sees herself as the next leader of the party." What are you hearing?
ROLLINS: Well, I hear the same things. The key thing is you got to stop that. You've got to basically say, all right. Governor, how do you want to end your last week here? We want you on our team. Here's what Senator McCain is going to say. Here's what we'd like you to say and where you like to go. Let's cut out all the bickering.
ROBERTS: But is she wrong for doing that? Was she mishandled?
ROLLINS: Sure, she was mishandled. There's no question she was mishandled the first few weeks of this campaign, and I think to a certain extent she's become a target of a lot of ridicule. This is a very popular, very effective person. So --
ROBERTS: What's your sense? Could she be the future of the party?
ROLLINS: She definitely is going to be the most popular Republican of this country when this thing is over. She'll basically spend the next three or four years running around doing Lincoln Day dinners and raising money for people. She's got to gain a lot of substance before she's a viable candidate.
ROBERTS: Do you think she has a shot at 2012?
ROLLINS: I don't doubt that she has that ability.
ROBERTS: All right. We'll look at that. Ed, thanks so much. It's always good to see you.
ROLLINS: Thank you very much.
CHETRY: We're 30 minutes past the hour. The top stories happening right now. A problem at early voting polls in several states. Election officials are reporting record turnouts and long lines and computer glitches in West Virginia and Georgia. If you encounter a problem, you're asked to go to CNN's voter hotline 877- GOCNN-08.
Syria is accusing U.S. forces of, quote, "serious aggression," saying four U.S. helicopters crossed the border from Iraq and attacked a civilian building. The state news agency says eight people died. The U.S. military says it's investigating. The area of the reported attack is a major route for militant fighters battling U.S. troops in Iraq.
And it looks like the markets taking a beating right now overseas. The orders to sell piling on. Hong Kong closed at a 26- year low, down almost 13 percent and Japan's Nikkei slumped more than 6 percent. The major indexes are also down across the board. Dow futures as well in negative territory.
Well, we're hearing a lot about Barack Obama's tax plan. He says in his administration, tax bills will be less than they were during the Reagan years. Is it true? Jason Carroll and the "Truth Squad" checking the facts for us this morning, and Jason's here with more on what they found.
Hi, Jason. Good to see you this Monday morning.
JASON CARROLL, CNN NATIONAL CORRESPONDENT: Yes, you know, it's always about taxes. Senator Obama says some of you won't be paying as much under his plan. It's a claim he's made several times in the past week on the campaign trail, most recently this weekend in Nevada.
(BEGIN VIDEOTAPE)
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: My opponent doesn't want you to know this, but under my plan tax rates will actually be less than they were under Ronald Reagan.
CARROLL (voice-over): But which rates and for whom? The "Truth Squad" got some details from an Obama economic adviser. The candidate was referring to two specific tax rates. We researched both.
The campaign projects under Obama's plan, a median income family of four would pay an annual income rate of 4.32 percent. Compare that to the average rates during the Reagan administration and it is lower. But the average rates from the current administration -- 6.71 percent in 2001 to 5.91 percent last year, they're lower than the Reagan years as well.
So, a president Obama would be starting with an already low level and then adding more cuts.
The Obama campaign also cited his proposed capital gains rate of 20 percent for families earning more than $250,000. Again, that's lower than the Reagan years, but look at the current top capital gains rate for taxpayers in that income group. It's 15 percent. So is Barack Obama's claim true?
OBAMA: But under my plan, tax rates will actually be less than they were under Ronald Reagan.
(END VIDEOTAPE)
CARROLL: So what's the answer? The Truth Squad's verdict is -- that familiar sound -- it's misleading. Obama refers to just two rates of the many in the tax system and the campaign does not explain how many taxpayers would qualify for the lowest projected income tax rates.
CHETRY: All right. Well, Jason keeping them honest for us this morning. Thanks. Good to see you.
CARROLL: I have another one coming.
CHETRY: All right. We'll see you a little later. Thanks, Jason.
John?
ROBERTS: All right. So, we're at the magic wall this morning because we've got some new polls to tell you about. We also want to take a look at presidential travel and the all-important Electoral College map.
First of all, let's start in Colorado, where we've got a new poll of polls that we came out with over the weekend. And here we see Barack Obama now with a 7-point lead over John McCain, 50 to 43 percent in the "Mountain State." So, still a chance that he is going to turn this red state. And for frame of reference, these are the results from the 2004 election. Still a possibility he might turn that red state blue.
We've also got some new polls to tell you about in Iowa and Missouri. Now this is where John McCain was over the weekend. And a lot of people can't figure out why he even spent time there. Let's hit our little dot here and come out because look at this. Barack Obama has got a 13-point lead over John McCain in the state of Iowa. There are some Republican strategists who say they don't know why he's spending a nickel there. He should be getting out and spending his time in other places like Ohio and Florida, trying to turn things around here.
Latest poll numbers, by the way, from Missouri right next door just below, 46-46, McCain-Obama, 8 percent of people unsure. Those numbers have been flipping back and forth a little bit. McCain was out in front a couple. Then it was even out. Then Barack Obama had a couple of point lead. So now we're back to even again.
Let's also take a look up here in New Hampshire. This is a state that John McCain would like to have just for bragging rights. But it doesn't look like it's going to be possible at this point. Barack Obama ahead 52 to 42 percent. McCain had been spending some time there in recent days, seeing if he could potentially turn things around.
Presidential travel today. Barack Obama is going to be in Canton, Ohio, which is right here in Stark County. Meantime, John McCain is going to be here in Cleveland.
The reason why Obama is going to Stark County, take a look at the numbers here in Cleveland. John Kerry 67-33 over President Bush. Summit County, 57-43. But you get down here to Canton, the numbers get very, very close together. It was only a two-point split between John Kerry and President Bush.
So, Senator Obama would certainly like to up his numbers there in the Canton area. If he can do that, if he can pull a lot of turnout here, there's a potential that he just might be able to turn that red state blue in this election.
In the next couple of days, we're going to see John McCain continuing to play here in the "Keystone State" of Pennsylvania. Barack Obama will be here in Virginia, trying to turn that red state blue. There's also going to be travel in North Carolina. And the running mates, by the way, are going to be spending some time here in Florida. That's where John Kerry will be.
Why is it so important for McCain to try to hold on to these red states? Because look at Ohio, red state; North Carolina, red state; Florida, red state; Missouri; Colorado; Nevada, all red states in the 2004 election. All toss-ups right now and every one with the exception of Missouri leaning toward Barack Obama at this point.
McCain, as Ed Rollins was telling us just a little while ago, reaffirming what Karl Rove suggested, a very steep hill to climb in these next few days. 36 minutes now after the hour.
The ground war in the battle for swing states.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: We have 21 phone banks across Virginia like this packed with people calling others making sure that they're voting with our team.
UNIDENTIFIED FEMALE: We're working more union members, more households. We're talking to more people.
(END VIDEO CLIP)
ROBERTS: Pushing for votes in the final week of the campaign. You're watching the "Most News in the Morning."
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ROBERTS: Welcome back to the "Most Politics in the Morning." And the wall says it all -- eight days and counting now for the presidential candidates to make their closing arguments. And the race may well be decided in battleground states like the Commonwealth of Virginia, traditionally Republican stronghold, now leaning toward Barack Obama. Obama has made nine trips there since June. In comparison, John McCain has only been to Virginia three times. Of course, his headquarters is there, so he goes there a lot.
CHETRY: Yes. So, we're getting down to the wire and CNN's Kate Bolduan tells us how both campaigns are once again trying to get out the vote in Virginia.
KATE BOLDUAN, CNN NATIONAL CORRESPONDENT: Good morning, John and Kiran. With just days left before the election, the campaigns are waging a ground war in swing states like Virginia.
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: Do you think we can count on your support for Barack Obama for presidency?
UNIDENTIFIED FEMALE: Yes, definitely.
BOLDUAN (voice-over): In the final sprint to the finish, the campaigns are pounding the pavement and working the phones.
UNIDENTIFIED MALE: This has come out from the McCain-Palin campaign and we're calling to see if we can count on your vote this November 4th.
BOLDUAN: Virginia has elected a Republican in every presidential race since 1968 but the latest CNN/"TIME" Opinion Research Poll shows Barack Obama leading John McCain by 10 points in the state. Unions and other Democrats are mobilizing to make sure that lead holds up on Election Day.
KAREN ACKERMAN, POLITICAL DIRECTOR, AFL-CIO: It's a very exciting moment. The crowds are bigger than we've ever had before and we're working more union members, more households. We're talking to more people.
BOLDUAN: Democrats are focusing on trying to turn out the hundreds of thousands of new voters they've registered here. Republicans want to make sure GOP voters are motivated to go to the polls with efforts they say go beyond the traditional push in the last 72 hours before November 4th.
SUSAN ALLEN, VIRGINIA WOMEN FOR MCCAIN: You see these phone banks. We have 21 phone banks across Virginia like this packed with people calling others, making sure that they're voting with our team.
BOLDUAN: Democrats in Virginia have outspent the GOP all year in Get Out the Vote Effort, but Republicans say there's more to victory than campaign money.
ALLEN: We think we've got a great ground game. We know that we've got people power.
BOLDUAN: The candidates know Virginia is crucial. Each ticket has campaigned here at least three times just this month. Obama's running mate Joe Biden stopped in Suffolk, Virginia, Saturday.
SEN. JOE BIDEN (D), VICE PRESIDENTIAL CANDIDATE: We win here and we win the presidency.
(END VIDEOTAPE)
BOLDUAN: The big question is who will benefit from this big final effort to get voters into the voting booths? Well, people may guess, but no one can be certain until the polls close November 4th.
John?
Kiran?
BOLDUAN: Kate Bolduan for us in Washington. Thanks.
Well, CNN has reporter standout across the battleground states covering the issues most important to voters.
And joining us now Christine Romans. You know, it's up for debate I guess you could say whether or not we're actually in a recession, but in case -- and many people feel we are, you're going to show us how to recession-proof our life.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: That's right. Every morning we come in with more bad news about the economy and the markets. But guess what, millions of Americans are going to do just fine. How to make sure you're in that group. It's 41 minutes after the hour.
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CHETRY: Welcome back to AMERICAN MORNING. It is 6:44 here in New York. And we're talking about all the bad news this morning on the market. A big selloff globally. But you're saying we don't have to worry about it if we recession-proof our life.
ROMANS: Well, that's right. And what's different today than three days ago or four days ago? I mean, we've been -- we've been, we've been feeling this for a month. I mean, October has been just a rotten month overall. A lot of concerns about the economy. How bad it's going to be. How worldwide the kind of decline will be. But you know, there are going to be millions of people who are going to do OK in all of this, you know? And there are some reasons why there's been relief lately. Gas prices down 50 cents -- more than 50 cents in just two weeks.
CHETRY: We haven't seen them this low since April of 2007. ROMANS: That's right. That's right. And that two-week decline is like a record decline for gas prices. That's going to feel like a stimulus for a lot of people. And seniors are going to see about $63 on average more every social security check next year. That's going to be a little bit of help. There are some little things that are happening that are going to put billions of dollars back into the pockets of people that -- you know, it's not -- it doesn't negate what's happening in the economy, but there's a little bit of relief. The silver lining, if you will.
Also, you know, how to make sure that you're on the right side of this whole thing. Well, come one, if you have got -- as foreclosures are skyrocketing and jobs are being lost, if you've got a 30-year fixed home mortgage and you live in that home and you're not living beyond your means, you're going to be OK.
If you've got six months at least of cash savings. Some people are actually saying maybe you need more now, at a properly allocated retirement portfolio, and you've got a job. You've got a job and you're pretty sure you're going to keep that job. You're going to be OK. So, there are millions of Americans who fit in that category and the trick is to make sure you're in that category. And to do whatever you have to do to get in there. We're going to see more job losses. You know, be careful about your job. Don't be taking big risks with your job right now.
And if you need to get another one, try to get one very, very quickly. If you're very close to retirement, you know, make sure that you're allocating and have been the way you're supposed to. That you have the right amount of cash. That you don't have too much stock exposure. This is the time to really take stock and everything. You can make sure that you are on the right side of what could be a pretty ugly 2009.
CHETRY: You know, also if you rent and you aren't contributing a lot to your 401(k), for years you've been told that's the wrong way to go. But a lot of people I talk to that were in that boat, say I hear all this going on around me. I don't feel, you know, as long as my job is still the same, I don't feel as though I'm in the thick of it.
ROMANS: That's right. And there are a lot of people like that who might be able to take some opportunities over the next few years, but the most important thing is live within your means. That's what got us into this mess in the first place, you know. If you don't have the money, you can't spend it, don't. Take care of your financial future.
CHETRY: Christine --
ROMANS: I'll get off my soap box.
CHETRY: Oh, good advice. We could all use it now and then or at least be reminded. Thanks, Christine. It's 47 minutes after the hour.
ROBERTS: Changing his story. (BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Was that just a smear.
UNIDENTIFIED MALE: Absolutely not.
(END VIDEO CLIP)
ROBERTS: Confronting the man believe to be behind the rumor that Barack Obama was born a Muslim.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: How could you get it so wrong four years ago?
UNIDENTIFIED MALE: Because Barack Obama lied to me.
(END VIDEO CLIP)
ROBERTS: You're watching the "Most News in the Morning."
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ROBERTS: 49-1/2 minutes now after the hour. Just eight days until the election. The man widely credited with starting the cyber rumor that Barack Obama is a Muslim is now changing his story. CNN's Jim Acosta joins me now with more on that.
How about that?
JIM ACOSTA, CNN GENERAL ASSIGNMENT CORRESPONDENT: John, he is. Andy Martin himself takes credit for making that first claim that Barack Obama was once a Muslim. But now Martin says his original claims about Obama's background are no longer true.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I have an information network that won't quit.
ACOSTA (voice-over): The man widely believed to be behind the claim that Barack Obama was born a Muslim doesn't believe it himself anymore. Internet blogger Andy Martin says he came to that conclusion on a recent trip to Honolulu where he crisscrossed Obama's hometown to investigate the Democratic nominee's background.
ANDY MARTIN, INTERNET BLOGGER: His father was Frank Marshall Davis.
ACOSTA: Without offering any proof, Martin says unnamed sources tell him Obama's real father is civil rights figure Frank Marshall Davis, not Barack Obama Senior.
(on camera): Doesn't this new discovery, as you're calling it, refute to a certain extent...
MARTIN: Absolutely.
ACOSTA: ...what you originally claimed...
MARTIN: Absolutely.
ACOSTA: ...about Barack Obama?
MARTIN: It certainly does. I mean, I'm an honest writer and an honest researcher, and I have had to say he wasn't born a Muslim anymore because I don't believe that Barack Obama Senior is his father.
ACOSTA (voice-over): Senator Obama is a Christian. But the false rumor that he's a Muslim has gone viral on the Web and even made its way into a question at a John McCain town hall meeting.
UNIDENTIFIED FEMALE: He's an Arab.
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: No, ma'am.
ACOSTA (on camera): Do you feel that you owe Barack Obama an apology?
MARTIN: No, because he hasn't told the truth to the American people.
ACOSTA (voice-over): Martin has challenged the validity of Obama's birth certificate but here it is posted on the University of Pennsylvania's widely respected web site factcheck.org.
MARTIN: They're being spoon-fed by the Obama campaign.
ACOSTA: Since he started making claims about Obama four years ago, Martin's own background has been scrutinized. He's run for political office including the presidency roughly a dozen times.
MARTIN: I'm known as a person who strives for the truth.
ACOSTA (on camera): But if you're striving for the truth, how could you get it so wrong four years ago?
MARTIN: Because Barack Obama lied to me.
DAVID GERGEN, CNN POLITICAL CONTRIBUTOR: The Internet is a force for enormous good but it is also a weapon that can be used to slam people.
ACOSTA (voice-over): CNN political contributor David Gergen fears the Muslim rumor could follow Obama into the White House if he wins.
GERGEN: If he makes a mistake or something goes wrong, then it's going to burst up to the surface and be part of, you know, a more boiling cauldron.
ACOSTA (on camera): Was that just a smear? MARTIN: Absolutely not. I've gotten a lot of flak for this latest story simply because people want to believe he's a Muslim.
(END VIDEOTAPE)
ACOSTA: Andy Martin has filed a lawsuit in court in Hawaii to get his hands on Obama's birth certificate. He says he has a hearing set for November 7th, three days after the election -- John.
ROBERTS: I kind of feel like Alice just fell down the rabbit hole. What? Frank Marshall Davis is his father? Where did that come from?
ACOSTA: He has absolutely no proof. We talked to him about this for close to an hour and asked him on more than one occasion, can you give us any proof? Can you give us any names? He simply has no information, no proof to back up these claims.
And what we got down to finally after talking about this for roughly 60 minutes, he confesses and he said this on tape that these are his "informed opinions" as he calls them, quote unquote. And that is what has been fueling this rumor for the last four years.
ROBERTS: You've got to wonder informed by what the...
ACOSTA: Informed by not much.
ROBERTS: Yes, right. Jim, thanks very much for that fascinating story.
ACOSTA: You bet.
ROBERTS: 53 minutes now after the hour.
Tension in Camp McCain. Who needs infighting with just eight days to go?
(BEGIN VIDEO CLIP)
GOV. SARAH PALIN (R), VICE PRESIDENTIAL CANDIDATE: You know, I tried to just ignore it because it's so ridiculous.
(END VIDEO CLIP)
ROBERTS: And who's calling who a diva.
Plus, election impact. "SNL." Behind the scenes with the new Michelle Obama. You're watching the "Most News in the Morning."
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CHETRY: Well, just eight days to go until Election Day. This really could be the year when the youth vote comes out in force and really makes a difference. Young voters key to Barack Obama's success during the primaries. Latest Associated Press/Yahoo! Poll also gives him a huge advantage, a 27-point advantage among voters 18 to 29. And with support for Barack Obama so strong on college campuses, some are asking where does that leave young conservatives? Well, joining me now from Washington is Karin Agness. She's the founder and president of the Network of Enlightened Women, a group for conservative women at the University of Virginia in Charlottesville.
Karin, thanks for being with us today. Great to have you here.
KARIN AGNESS, FOUNDER, NETWORK OF ENLIGHTENED WOMEN: Yes, great to be here.
CHETRY: When we look at the numbers, the deck stacked against John McCain in terms of young people 18 to 29 and really 2:1 there backing Barack Obama. You say that the Obama campaign has literally infiltrated college campuses. What do you mean by that? Explain.
AGNESS: What I mean is when you walk around college campuses at the University of Virginia, you see Obama buttons and bumpers stickers and stickers just everywhere. Even on our downtown mall in Charlottesville, there's a huge Obama mural that's there. And they're just much more visible and it has become, you know, Obama has made himself the cool candidate on college campuses and that's been a successful strategy for him.
CHETRY: Is it because John McCain's campaign has done something wrong? I mean, if you were to give them advice on how they could try to energize the youth vote, what would you tell them to do?
AGNESS: What I would tell them to do is to highlight what makes McCain attractive to young people. Look, McCain may be the oldest candidate in this election, he's 72, but he embodies the youth spirit more than any other candidate. He's the rebel. You know, he's the maverick. And I would highlight there. And I also think that Meghan McCain, his daughter's blog has been very effective in, you know, painting him as real person and showing another side to John McCain.
CHETRY: You say that there's peer pressure to vote for Obama or to support Obama on campuses. Give me an example of that.
AGNESS: An example of that would be when a young Obama supporter wears a t-shirt to class. Everybody -- it happened in one of my seminars -- and a lot other students thought it was cute and liked it. And when I wore a McCain t-shirt to class, everybody just kind of rolled their eyes and it was like what are you doing?
(CROSSTALK)
CHETRY: You posted an article on townhall.com. You wrote about moveon.org's ads featuring the stars of "Gossip Girl." Let's take a look at it.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Mom, Dad, I found this in your room.
UNIDENTIFIED FEMALE: Are you thinking about voting for John McCain?
UNIDENTIFIED MALE: Just because other people your age are doing it doesn't make it cool.
UNIDENTIFIED FEMALE: If you're ever out somewhere and you're considering voting McCain, just call me, I'll pick you up, no questions asked.
(END VIDEO CLIP)
CHETRY: Sort of a play on "If you've been out, had too much to drink, call me and I'll be your designated driver." Is that -- what's your problem with that ad?
AGNESS: Well, that ad has it all backwards. Our parents have been around a lot longer. They've experienced different types of government under Democratic and Republican leaders, we should be listening to them, not the other way around.
CHETRY: I got you. There's also some grumblings from inside the McCain camp that Sarah Palin may be not listening to them, sort of striking out on her own. One aide telling CNN she's a diva and doesn't take advice from anyone. Looks like there -- well, at least there are some rumblings that there may be some divisions there. What do you think about Sarah Palin and what her future is with the GOP?
AGNESS: I think she has a very bright future. Look, I was out in Minneapolis for the convention and she re-energized the Republican Party and brought a lot of excitement to it. And she's doing that. And yes, she probably has a big personality, but so do a lot of the other big players. And, you know, the McCain campaign right now, they're behind, I think they're looking for any strategy they can find to kind of take the lead.
CHETRY: Karin Agness for us, the founder of the Network of Enlightened Women. Thanks for joining us this morning.
AGNESS: Yes, no problem. Thanks for having me.
