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American Morning

Extending the Bush Tax Cuts; Spreading the Blame; Angelina Jolie Tours Pakistan; Bluegrass Politics; A Soldier's Story

Aired September 08, 2010 - 07:58   ET

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

JOHN ROBERTS, CNN ANCHOR: Good morning. Thanks so much for joining us on the Most News in the Morning on this Wednesday, the 8th of September. I'm John Roberts.

KIRAN CHETRY, CNN ANCHOR: I'm Kiran Chetry. Glad you're with us. We have a lot to talk about this morning.

First the president. He's heading to Cleveland, this morning, to unveil his $350 billion plan to stimulate the economy. Tax cuts for businesses, part of it, also new spending on infrastructure, both of those things included in the package. But some are wondering is it enough to actually stop the pain and reverse the gains being made right now by Republicans?

ROBERTS: BP releasing the findings of its own investigation into the oil spill in the Gulf of Mexico. The oil giant facing billions in fines spreading the blame around, questioning decisions that were made by, quote, "multiple companies and work teams for the catastrophe." We'll break down the report in just a moment.

CHETRY: And she's flown around the world visiting people in need. Now actress Angelina Jolie is on the ground in Pakistan in the wake of the flooding there and she's talking to those affected by the country's worst natural disaster in its history. The U.N. Goodwill Ambassador toured the flood-ravaged region yesterday. She spent most of her time talking to Afghan refugees. We also know that she spent some time talking to Sanjay Gupta just moments ago and we're going to get more of their one-on-one interview just ahead.

ROBERTS: And, of course, the amFIX blog is up and running. Join the live conversation going on right now. Just go to CNN.com/amFIX.

CHETRY: Well, as we said, President Obama hits the road again this morning. Today, he's headed to Cleveland, Ohio, hoping to spark a reversal of fortune for the economy, but also for his party. He's announcing $350 billion package that's designed to stimulate the economy, including big tax cuts for small businesses, hoping to help create more jobs.

ROBERTS: And we are expecting to se a different side of the president. We're told that he is going to be getting personal. Earlier on AMERICAN MORNING, senior White House advisor, David Axelrod, conceded it will be difficult to get any economic plan through Congress in the next two months.

(BEGIN VIDEO CLIP)

DAVID AXELROD, WHITE HOUSE SENIOR ADVISOR: We've had a hard time even getting tax cuts for small businesses passed by. The Republicans in the Senate have held it up with procedural maneuvers. But ultimately, I think the public will demand and the Congress will receive, the Republicans in Congress, to ideas that will help move this economy forward.

(END VIDEO CLIP)

ROBERTS: Well, it seems no matter what he does or says, the president can't seem to stop hitting roadblocks these days as he tries to right the economy. Republicans call his position on the Bush tax cuts just dead-wrong.

CHETRY: And now, the president's own former budget director is taking the other side as well.

Ed Henry is live in Cleveland this morning with more.

How concerned are they that Peter Orszag and this writing in "The New York Times" is in favor of, at least temporarily, extending those Bush tax cuts?

ED HENRY, CNN SR. WHITE HOUSE CORRESPONDENT: Well, Kiran, it's interesting. They're obviously trying to brush that off and say, look, the president's not likely to change his position which has been that he believes that the Bush tax cuts for the rich should expire at the end of this year. What Peter Orszag was suggesting in that op-ed in "The New York Times," though, is that if you raised taxes on the wealthy, it's likely to make the unemployment situation in this country worse. And so, that debate is going to continue.

The White House, as you heard from David Axelrod -- they are trying to insist this is not about politics. It's not about the midterm elections, that they are focused on medium and long-term rebuilding this economy. But White House aides themselves acknowledge that the whole reason they picked the Cleveland area for this speech today is because that's where John Boehner, the man who would be the Republican speaker of the House if they take over Congress, gave a speech just a couple of weeks ago to lay out his economic vision. The president is clearly trying to lay out a contrast here right before the midterms.

Here's what he's going to say today. He's going to have $200 billion tax cut plan aimed at small businesses. Let them write off purchases of, you know, building new plans, buying new equipment; $100 million tax credit for businesses in terms of their research and development costs; $50 billion, as we heard the president earlier this week, on infrastructure. David Axelrod is talking a lot about that as well.

John Boehner, though, out this morning already, sort of a prequel to the speech, saying this just shows that the president is out of touch. He still wants to spend too much money and Republicans believe this is an acknowledgement that the big stimulus last year didn't work as advertised. That the White House is now scrambling to come up with new ideas -- as you heard David Axelrod push back earlier, what they are trying to say is, look, this is all about long-term fixes.

And they're really trying to show a contrast with the Republicans -- not just by coming to the same city of Cleveland. John Boehner gave his speech to the City Club of Cleveland. The president will be speaking here at the Cuyahoga Community College to try to show they're not going to speak at an elite club. They're going to talk here to students.

I think if you brush the politics aside, though, the real focus here has to be about the unemployment situation. Really hard hit here in Ohio -- 310,000 Ohioans right now actually collecting unemployment checks. Some 60 percent of them have been long-term unemployed, unemployed for at least 27 weeks or more.

And meanwhile, these economic plans the president is talking about today, very unlikely to pass -- be passed by Congress before the election. So, while people are still hurting, there's still a lot of, you know, war of words, competing plans. But people are obviously looking for help. They're really hard hit in states like Ohio here -- John, Kiran.

ROBERTS: Also, Ed, yesterday, a real surprise when Chicago Mayor Richard Daley said he's not going to run for re-election. And now, you know, tongues are wagging and the favorite parlor game in Washington there is: Will Rahm Emanuel throw his hat in the ring for Chicago mayor? What are they saying there?

HENRY: It seems like he will. When you talk to people close to Rahm Emanuel, he has made no bones about the fact publicly before all of this that some day he wants to be mayor of Chicago. The job hasn't opened up in a couple of decades. So, this would be his first opportunity.

Richard Daley, as you know, served six terms. So, if he wants to jump in, this would be the time to do it. The complication, of course, is that you'll have to -- the filing deadline to become a candidate, the end of November. That is a little sooner than Rahm Emanuel was planning to leave the White House, I'm told. He wanted to stay until early next year. This would mean he'd have to move all of that up.

But the smart money now is saying that he's likely to do it. A lot of people are wondering who's going to be the next White House chief of staff. A lot of names like Tom Daschle, Leon Panetta, other big Democrats being bandied about. And they're all possibilities.

But I'm told the name to really watch is Ron Klain. A lot of Democratic insiders say, you know, he's the current chief of staff to Vice President Biden. He served in the Clinton White House, has a lot of experience, very seasoned.

Someone else to watch is Valerie Jarrett, close to the president. She may be a candidate here as well.

But a lot of people are talking up Ron Klain this morning, at least behind the scenes, John.

CHETRY: Interesting stuff. All right. We'll see what happens. Ed Henry for us this morning in Cleveland -- thanks.

And by the way, when the president delivers his remarks on the economy, CNN is the place to be. We're going to be bringing it to you live. Set to begin around 2:00 Eastern Time from the west campus of Cuyahoga Community College.

ROBERTS: Well, this morning, there's growing outrage over a plan by Florida Pastor Terry Jones to burn copies of the Koran on 9/11. Government officials have joined religious leaders in denouncing the event. Attorney General Eric Holder calls the Koran burning, quote, "idiotic," and Secretary of State Hillary Clinton weighed in last night at an event celebrating Ramadan.

(BEGIN VIDEO CLIP)

HILLARY CLINTON, SECRETARY OF STATE: I am heartened by the clear, unequivocal condemnation of this disrespectful, disgraceful act. Our commitment to religious tolerance goes back to the very beginning of our nation.

(END VIDEO CLIP)

ROBERTS: And Clinton echoed the comments of General David Petraeus who said that Koran burning would endanger American troops overseas.

CHETRY: And meantime, the imam behind the planned Islamic center and mosque near Ground Zero in New York is defending the controversial project. Imam Feisal Abdul Rauf says he is determined to go ahead with the center which will include separate prayer spaces for Muslims, Christians and Jews.

The imam also writes in "The New York Times" today, "I am very sensitive to the feelings of the families of victims of 9/11, as are my fellow leaders of many faiths. We will accordingly seek the support of those families and the support of our vibrant neighborhood as we ultimately consider plans for the community center. Our objective has always been to make this a center for unification and healing."

And Imam Feisal Rauf will be speaking to CNN's Soledad O'Brien. It's tonight, an exclusive interview on "LARRY KING LIVE," 9:00 Eastern, right here on CNN.

And then right after that, 10:00, Anderson Cooper will have reaction to the imam interview on "A.C. 360."

ROBERTS: Well, what caused the deadly oil rig explosion in the Gulf of Mexico and for some 2 million barrels of oil to leak out of it? The company's own investigative report is out. BP is accepting some of the blame for the disaster but also pointing fingers. We got details coming right up.

Seven and a half minutes after the hour.

(COMMERCIAL BREAK)

ANNOUNCER: This is CNN breaking news.

ROBERTS: And 11 minutes after the hour. With BP facing more than $20 billion in fines this morning, the oil giant is releasing the results of its own internal investigation into the Gulf of Mexico oil spill. And it may come as no surprise they're finding plenty of people to blame outside of their company.

Joining us live from Houston this morning is Don Van Nieuwenhuise. He's a professor of petroleum geoscience at the University of Houston.

So, I know, Don, you've had some opportunity to look through this report. But it is a long report. You're still going through it. But what are the significant find things that have caught your attention here?

DON VAN NIEUWENHUISE, UNIVERSITY OF HOUSTON: Well, they've gone through eight steps that led up to the disaster. And I think they've done an excellent job of doing that. The first one is issues with the cement. But one of the things they seem to avoid, at least in the executive summary and -- but it pops up in the full report, that a number of these weak points, and that is the overall casing plan may have had some problems in it -- that could have contributed to some of the functionality, for example, the cement and some of the pressure readings that led up to them making the wrong decision.

ROBERTS: Now, when we look at, you know, what they call weaknesses in cement design and testing here in the well, that's Halliburton that is doing the cementing. Are they pointing a finger at Halliburton here?

VAN NIEUWENHUISE: Yes, that's a clear finger being pointed on Halliburton on that. And I haven't been able to read into it far enough to find out where the decision was made to allow them to go ahead with that system. And, you know, the nitrogen slurry apparently was not effective as they thought it would be. And they think that the nitrogen sort of broke out or pocketed and that created gaps in the cement.

ROBERTS: You know, we heard in the days after the explosion about a pressure test that has showed some anomalies. This report seems to address that, saying that a pressure test was accepted. The well integrity was not established, blaming both BP and pointing the finger at Transocean -- Transocean being the owners of the rig, the people who are contacted to actually drill that well.

So, more shared blame in that particular instance.

VAN NIEUWENHUISE: Right. Yes. In that instance, again, the company man, the person representing BP usually has the ultimate decision in that although someone from Transocean, if they suspect something is wrong, they certainly have the right to speak up and contradict the company man.

ROBERTS: Now, I've -- I've only had a chance to go through the executive summary. Maybe it's somewhere in the report and maybe you've come across it. But there was also this issue of BP apparently, according to people that -- from Transocean -- that have talked about this, ordered that the drilling mud be removed and replaced with sea water, which many experts say wouldn't be heavy enough to keep the oil and gas down which could have led to the blowout.

Do we see that anywhere in this report, Don?

VAN NIEUWENHUISE: Yes, we do. In fact, what happened was they had the system overbalanced or over-pressured with mud prior to doing just that, removing the mud, which would have held back any gas and oil that was trying to escape. But the minute they removed the mud from the riser, they went into what we call an underbalanced situation. And the gas was allowed to escape.

ROBERTS: Has that then cited as a cause of this explosion?

VAN NIEUWENHUISE: That's one of the steps in the series of problems that did occur. And they do point that out as a significant failure.

ROBERTS: Right. You know, they don't point to any single action or inaction to cause the accident. They say in the report, quote, "rather a complex and series of mechanical failures, human judgments, engineering design, operational implementation and team interfaces came together to allow the initiation and escalation of the accident."

So, based on that, if this was not a single failure, but rather a systemic failure and a number of failures -- how do you expect that that is going to change operating procedure in the future?

VAN NIEUWENHUISE: Well, I think there are a number of procedures in place to cause people to check and recheck and stop at certain points along the way. What's interesting in this case is that, you know, they actually went through eight steps and no one said, hey, stop. And that, to me, is more of a rig problem than, say, systemic problem across the oil industry.

ROBERTS: All right, well we will be spending some time digesting this report because as we said, it is large one. Don Van Nieuwenhuise, thanks for being with us this morning. Good of you to share your expertise. We appreciate it.

NIEUWENHUISE: Thank you.

ROBERTS: Kiran.

CHETRY: All right 15 minutes past the hour now. Still ahead, Oscar winning actress and U.N. Global Ambassador for Goodwill, Angelina Jolie is in Pakistan. She met with flood victims and she also spoke just moments ago to our own Sanjay Gupta about what she saw as she toured the destruction. We are going to check in with him coming up.

(COMMERCIAL BREAK)

CHETRY: Nineteen minutes past the hour. We have a "CNN Exclusive," for you this morning. Our Sanjay Gupta speaks one-on-one with actress Angelina Jolie. She makes a desperate plea on behalf of the 21 million flood victims in Pakistan.

(BEGIN VIDEOTAPE)

SANJAY GUPTA, CNN SENIOR MEDICAL CORRESPONDENT (on camera): You bring so much awareness to what's happening there. Why do you think that people haven't paid as much attention to what's happening in Pakistan?

ANGELINA JOLIE, U.N. GOODWILL AMBASSADOR: I think people have a fatigue, in general when it comes to disaster relief. But if I can say that the thing I have learned the most in being here is that we tend to focus on one issue at a time because that seems to be what people can absorb and care for. But Pakistan is so complex because it has not just the people being affected now but the 1.7 million Afghan people who are here. And they have been displaced from the flood.

GUPTA: Often -- you may have found this as well in your travels, we tend to think of these places as over there. Somewhere else. Not here. But when you go and I was there as well, I mean, you meet people. They are real faces and stories behind these crazy high numbers. Raymond and Zarugagul (ph) are two people that you met. Tell me about him. How did you meet them? What did they tell you?

JOLIE: As you, we go to these places and you always say the same things to the viewer which is that they would be so moved if they were here. And it is so true. If they met all these children who are so resilient and are still children and so full of life and love and hope. And it is always so moving. And this is a very unique for me because I met this beautiful older couple who are in their 70s. And they worked their whole lives. And the man had been in the Pakistani military twice and he had been lived off of a pension. And with that small pension he built this home and his family and for his grandchildren. And it was very modest to begin with. But he had something. And now they are both dealing with a lot of sickness and as you see, I believe in the tape, the woman was -- is so embarrassed with her situation.

She -- and the man spoke to the fact that he never felt in his lifetime he is ever going to be able to recuperate what he has lost. That he would never have again nice things. That he would never have a nice bed, a nice house. And she -- they lived in this place since 1972 and raised their children and their grandchildren there. In a moment, in a few hours, it was completely gone. And they are really good people, and really just kind, wonderful, hard-working older people who will pass away most likely in this mud-covered area. Which is so covered with dirt and there's feces in the river nearby. It is covered in flies. It doesn't have the dignity that they deserve to live in, that anyone deserves to live in. GUPTA: And it is more heartbreaking to hear that. And I think it's almost more heartbreaking to hear that they are embarrassed to tell you about it. I don't know -- you know, how that should make somebody feel. I traveled through these camps, Angelina where I saw these kids in their tents. In the situations you are describing, having done the homework, and being a father as well. I don't know. It really got at me because they have dreams and aspirations and hopes and those things are spread throughout the world evenly. What -- are you optimistic about the next generation of Pakistan? It is a young country. It has been devastated so many times now as you just mentioned.

JOLIE: I think - I think we have no choice but to be optimistic and have hope without that we are just lost and things deteriorate. I think it is - you know, this part of the world, they are - they are resilient people. Think of all that they have been hit with. They continue to move on, to rebuild. To trade, to educate, to learn to, you know, they are really trying. And they have fought through a lot and will continue to fight through. And that goes for the Afghani people as well.

So you know, we have to. We have to support them. And also, for all those people worried about conflict in this part of the world, and they feel like it is far away. Or they're not sure that, they don't understand the, you know, corruption, for all of this, the only way to make for a healthier, more hopeful, stronger Pakistan and Afghanistan is to help support education, is to help people especially in this time of need and to not just allow for more devastation and more desperation.

GUPTA: One thing that's worth pointing out as well, you are there now. I just returned from there. This is ongoing. I think a lot of the reports would have you believe that this is somewhat over. The way, you know, flooding continues and in some of the parts of the south where I was most recently, there are places still being displaced. Have you gotten a sense of the scope of this? I mean they say the size of the state of Florida or New England. How do you convey that the -- the scope of this to people back home?

JOLIE: Well to convey, it is very difficult to say to people other than please care, please help. But I think -- we are both thinking that having been here and met these people just to say, remember, they are people. They are family and lovely, they are lovely hard-working people and beautiful children. They deserve dignity and assistance and we have to treat them with respect and try to preserve what we can of their livelihood and their future.

(END VIDEOTAPE)

CHETRY: It's great to hear from her. Great that she cared to go there and raise awareness like that she was willing to talk to Sanjay about it.

ROBERTS: I like the idea in part at least Sanjay's reporting that inspired her to go over there and get a firsthand look at it. The U.N. Goodwill Ambassador also said she feels close to the people of Pakistan. She has been to the country several times. Her last visit was in 2005 after the devastating earthquake in the North.

CHETRY: So if you have seen that and wondering what can I do, we want to let you know there is a place you can go to help. You can head to the special section of our website. It's in "Impact Your World" section, the address, cnn.com/impact. We are going to take a quick break, 25 minutes past the hour. We'll be right back.

(COMMERCIAL BREAK)

UNIDENTIFIED MALE: This is "CNN Breaking News."

ROBERTS: And the breaking news this morning is to give you our "Top Stories." BP releasing the results of its internal investigation a short time ago. The oil giant questioning decisions made by, quote, "multiple companies and work teams for April's oil rig explosion that triggered the worst oil spill in U.S. History." The company's internal report also concluded weaknesses in cement design and testing.

CHETRY: The Imam behind the Islamic center and mosque planned near ground zero insists that he will go ahead with the project despite all the controversy. Imam Feisal Abdul Rauf says that the center is designed to build bridges between faiths and that he'll seek the support of 9/11 families. The Imam sits down for an exclusive interview tonight with Soledad O'Brien who is filling in on LARRY KING LIVE. That's tonight, 9:00 o'clock eastern here on CNN.

ROBERTS: And President Obama heading to Cleveland in just a few hours. He will make the case for he is planning to jump start the economy, including expanded tax cuts and infrastructure spending. The president will reinforce his position against extending Bush era tax cuts for the wealthiest 2 percent of American families.

CHETRY: Well a critical swing state to track this election season is Kentucky. The CNN election express crossed the Ohio River into Covington, Kentucky, that is just outside of Cincinnati.

ROBERTS: There is a big senate race being fought. Republican Rand Paul taking on Democratic attorney general Jack Conway in a key test for the Tea Party. Our senior national correspondent John King joining us live from Covington now. Of course, all eyes on Rand Paul in this upcoming election, John.

JOHN KING, CNN SENIOR NATIONAL CORRESPONDENT: It is a fascinating race, John and Kiran, in part because of the big Tea Party surge that won him the nomination, and in part because Republicans desperately immediate to keep his seat. It is a seat in Republican hands open because of the retirement of Jim Bunting. And Rand Paul shocked the Republican establishment and won the nomination. This is the home state, Kentucky of the Senate Republican leader Mitch McConnell. He had a different candidate in the primary and the Tea Party energy.

The Resurgence on the right with Tea Party help got Rand Paul that nomination. The question is can Democrats take that seat away? The polls right now show you that Rand Paul is leading in that race. Eight weeks to go. Jack Conway is the Democratic state attorney general. Democrats are hoping something how they can portray Rand Paul as extreme and outside the mainstream and take this seat. Again though, at the moment, Republicans are confident they will keep this seat.

But John and Kiran this is a reminder that as much as we talk over the next several weeks about how tough of a year this is for the Democrats, Rand Paul's upset here and a number of other Tea Party upsets across the country, a reminder voters don't necessarily hold the Republican establishment in such high esteem either.

CHETRY: You know the president's also planning to unveil this today when he heads to Ohio. One hundred eighty billion that includes tax cuts, infrastructure spending. How does he sell these proposals so they actually help these Democrats heading into the midterms?

KING: Kiran it is a great point because the president's proposal would need approval in the Congress and nobody thinks he can get the votes before election day. So the challenge for the president is try to convince the American people, look, it's tough, we know things are tough, but we are trying

And the president and Democratic Party, his message will be of the team that's our side. And it matters immensely because Democrats have so many vulnerable candidates, including just across the river. The Democratic district north of Cincinnati, a Democratic freshman running against a former Republican, Congressman Steve Chabot. The economy is the issue in that district, the economy is the issue all over America.

And many Americans concluded the stimulus spending didn't work as well as the White House said it would. And they are looking -- latest poll shows they trust the Republicans more than Democrats to handle the economy.

So in addition to the specifics the president will unveil today, part of this is the psychology of the economy, trying to convince voters that we have a better plan. It is just going to take a while. But Kiran and John, I will tell you, I was exchanging e-mails with pollsters on the democratic and Republican side. Most think this is too late from the president to change the overall election dynamic.

ROBERTS: John, on this subject of polling, a new CNN Opinion Research Corporation poll out this morning finds that 51 percent of respondents view Nancy Pelosi unfavorably. That makes her perhaps the most unpopular Democrat in America. And what potential effect could that have in the midterm elections?

KING: Again, it is another fascinating piece of data. If you go back to 2006 when Nancy Pelosi was just emerging to become the speaker of the House, only 23 percent of Americans had an unfavorable opinion of her. Why? Americans don't tend to know their congressional leaders.

But as the speaker of the house, she has become a rallying cry. She has become as much as President Obama has been a face of the Democratic Party and a face for Republicans to blame for when they criticized Democratic policies. So she can be a rallying cry.

It is easier to run against something when you can personalize it, which is why you hear Republicans running against the Obama White House or against Speaker Pelosi. It has been much harder for the Democrats.

Watch the president today. He will get more personal and name names in the Republican Party. But it is much harder to focus and attack when you can't personalize the enemy, and Nancy Pelosi has become a poster child. As you travel across the country, you will see her face or her name in Republican campaign ads in places just a few years ago not many people would have known who Nancy Pelosi was.

ROBERTS: John King for us this morning. Thanks so much. Be sure to watch tonight at 7:00 eastern, "JOHN KING USA" gearing up for the midterms. He hits three key states -- Pennsylvania, Kentucky, and Ohio. "JOHN KING USA ELECTION ROAD TRIP" tonight at 7:00 eastern right here on CNN.

CHETRY: And right here on CNN we will be breaking down the races with the best political team on television. On Thursday, tomorrow, we are in Indianapolis getting coverage from our T.J. Holmes. Also we will be checking in with John King, as well as Dana Bash, Jessica Yellin, and Gloria Borger.

ROBERTS: President Obama plans to shift his tone on the economy, ditching policy lectures for a more emotional, more personal approach. Andrew Ross Sorkin, business reporter forks "The New York Times," coming up next.

(COMMERCIAL BREAK)

ROBERTS: It's 36 minutes now after the hour. We are told the president is going to get personal today when he addresses the nation about the economy.

CHETRY: He is giving a speech in Cleveland. It will be at 2:00 this afternoon. And the president's pushing for investment in infrastructure as well as tax breaks for businesses.

So here to help us break it all down is Andrew Ross Sorkin, a business reporter for "The New York Times" and author of the bestseller "Too Big to Fail." Welcome, Andrew.

ANDREW ROSS SORKIN, BUSINESS REPORTER, "THE NEW YORK TIMES": Thank you for having me. I appreciate it very much.

CHETRY: We are talking about this $50 billion, a combination of tax cuts, infrastructure spending, et cetera. Your take on whether or not this proposal, if it gets off the ground, will actually help the economy?

SORKIN: It will. It is a good thing. I don't want to dissuade you that it's not. The challenge is it will take a very long time to roll this out. And so will it affect the economy? Will it get money into people's pockets? Yes. But it could be two, three years out. This isn't a shovel-ready situation where people are going to get jobs tomorrow. And that's the hardest part for the president especially as gets into the elections because this isn't going to move the needle in terms of the political calculus.

ROBERTS: The White House and Democrats at general seem to be losing the confidence of the business community to some degree at least. You had this in one of your columns, the chief of Intel saying at an Aspen retreat last week, quote, "The next big thing won't be invented here. Jobs will not be created here."

He's basically suggesting the White House and Democrats don't get it. They don't know how to create jobs.

SORKIN: And this particular speech today and proposal itself is supposed to address that, the biggest piece of that being what's called the research and development tax credit. So if you are a business, these tax credits will be permanent. That's a good thing.

The other piece is the idea that if you are going to invest in plants or technology, you are going to be able to write that off 100 percent in the next year. That's very important because there's some pent-up demand within business to do those expenditures. This should accelerate that. Of course, it doesn't do anything about demand itself. So businesses suffering may still not make that investment.

CHETRY: It comes back to the worker again. As you point out, 11 million people out work, 11 million jobs just waiting.

SORKIN: If you want to get back to 2007 levels, you need to create 11 million jobs virtually overnight. To do that over a three- year period, you have to create 400,000 jobs a month. Look at the numbers we have been hearing about every month. We are so far from that.

So the idea that we are actually going to feel it in our wallet any time soon, I hate to say, is wishful thinking.

CHETRY: If it is a he-session, infrastructure spending seems like a good idea, getting manufacturing jobs out there.

SORKIN: Absolutely. And it actually puts the country in a better place. And also from a stimulus perspective, the last stimulus plan people said we didn't get enough value for our dollar. We put in a dollar, some people said we got 80 cents out. Infrastructure means you spent a dollar and over time you create $1.50 of value.

So there is something to be said about this plan. Again, I think lit take time before we actually feel the effects.

ROBERTS: What about the issue of the Bush tax cuts? They are set to expire the end of this year. Peter Orszag, the former budget director, is now saying extend the tax cuts for two years and then eliminate them for everybody. The president wants to raise taxes on high income earners, about $250,000. Does it make sense to extend those tax cuts?

SORKIN: I'm with Peter. I actually think extending the tax cuts make sense because we have the short-term gap.

The question is, in two years from now, have we overcome the short-term gap or are we still in the same problem because in two years if we haven't gotten over the problem it means you won't be able to get rid of the taxes again either.

And then the question -- other question is at $250,000 is that the right number? Can the president actually tax those people at a higher rate without impacting the economy? Or, and this has been raised, do you actually create another tier? You know the president talks about people at $250,000, but he's also really talking about people getting paid $800,000, $1 million, and whether those are the people he's really trying to approach, not this lower group.

CHETRY: You also say you agree with Orszag that eventually we need to create more revenue.

SORKIN: We have to create more revenue.

CHETRY: Does it need to come -- none of us want to admit it -- in the form of higher taxes?

SORKIN: There's no question we have to create high revenue, probably through higher taxes, and we are going to have to cut spending, period, full stop. The rubber has to hit the road at some point.

The question is, when and how do you do it in a meaningful way without hurting ourselves today?

ROBERTS: So the president's position on tax cuts, is this an economic problem for him, or is it a political one? Because he was the one that promised in this campaign not to raise taxes on the middle class. He has to get revenues from somewhere. Is he kind of stuck.

SORKIN: I think he's keeping his promise by not going after the quote, unquote "middle class." So he will score some political points there. The real issue, though, is can he score enough political points to do anything about November? And I think the answer at this point is no. This plan really is, you know, far out.

ROBERTS: The other big question is can you raise enough money on the backs of the super wealthy to close this gap?

SORKIN: Sadly you can't. So there is -- the other political calculus is it sounds good to tell the American public we are going after the richest. That's a good thing. But again, it is not enough money. That doesn't mean you don't want that money. But it overall doesn't take care of the problem.

CHETRY: Here is another fly in the ointment. Today the "Wall Street Journal" had an article out talking about health insurance, top health insurers like Blue Cross/Blue Shield, Aetna and others saying we are going to have to raise premiums, one to nine percent, perhaps, on some people as a direct result of the health care reform.

Does that give business pause when it comes to hiring, looking ahead to the future, the possibility of tax cuts and increasing --

SORKIN: The flipside to all of these policies -- so this news out of Cleveland today will be good news. The bad news is the health care plan doesn't really help the financial regulation, again, doesn't really help for jobs.

And so all -- it helps long term, but all of these things in the short term are going to create a crunch. And that is really the challenge we are all facing.

ROBERTS: Do you think that this zero sum game in Washington, too, is contributing to our economic woes? Somebody has to lose in order for someone to win, and all we see is fighting back and forth.

SORKIN: We are going to see gridlock depending what happens with the elections in November. But when you think about the next couple of months, you know, can the Republicans say no to -- can the Republicans effectively say no to tax credits? That to me will be an interesting issue.

ROBERTS: They'll be in a difficult place.

SORKIN: They will be in a very difficult place. Yet, I imagine they still will find a way to say no. So it is going to be an interesting couple of months.

ROBERTS: Andrew Ross Sorkin, good to see you this morning.

SORKIN: Good to see you.

ROBERTS: When the president delivers his remarks on the economy this afternoon, CNN is the only place to be. We will bring it to you live at 2:10 p.m. eastern time from the west campus of Cuyahoga Community College.

CHETRY: Also, for the most political news, head to our ticker, CNN.com/ticker.

ROBERTS: Flood threatens in the south from the tropical depression Hermine out there, and the northeast is getting cooler. Rob Marciano has the travel forecast coming right up. Stay with us.

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ROB MARCIANO, AMS METEOROLOGIST: Tropical storm Hermine already onshore by this time yesterday. But these are the shots in San Antonio well inland. Winds picking up the lawn chairs and tossing them in the pools and palm fronds being thrown around as well and not to mention the heavy rainfall; this storm packing a punch for sure and affecting a lot more people than Hurricane Earl did just a week ago. Good morning again everybody. Look at this -- this rainfall tallies in Austin that are just north and west of town by about ten miles, over ten inches of rainfall. And it's still coming down right now. In Fort Hood, Texas seeing over eight inches and Victoria seeing over seven inches.

And here is the radar. Look at this stream of moisture continuing to flow in from the Gulf of Mexico. The center of the -- what was Tropical Storm Hermine right there. So slowly moving up towards Oklahoma and that's where a lot of this rain is headed even though it's still raining heavily down into parts of the south.

Dallas, boy, just a nasty, nasty day and I don't see it getting any better here. So we've got the flash flood watches and a lot of warnings out from the I-35 corridor from San Antonio to Austin. Right through Dallas, could see another six inches of rainfall on top of what we've already seen.

Here is what our computer model says. Any time you see white swath here, this is the forecast, we are seeing over six inches of rainfall. That's a distinct possibility as we go through the next 12 to 24 hours.

All right, we had some winds in Detroit yesterday fanning some -- flames; numerous fires in the city itself. Those same winds are going to be cranking through parts of Jersey and the Philadelphia area. So, we've got a red flag warning up later on today for a front. The same front that went through Detroit and pretty much the same system that went through Boulder is going through the I-95 corridor here. Dry for the most part with the exception of eastern New England. Once this goes through, that's when we will see those gusty, dry winds. So be aware of that. That is going to slow down some air travel at the very least.

Boston, New York Metro is over an hour delay expected throughout the morning and afternoon; D.C. and Philly, same deal; Houston, of course, Dallas, will see some rain delays because of the heavy thunderstorms that are rolling through that area. 81 degrees expected in Kansas City; 82 in Denver; 84 in Dallas; 91 in Atlanta and 83 degrees and a bit breezy this afternoon in New York City.

That's your quick check on weather. The Most News in the Morning is coming right back.

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CHETRY: Fifty minutes past the hour right now. An inside look at how troops in Afghanistan deal with the danger that they face each and every day. It's part of our ongoing series "A Soldier's Story".

ROBERTS: We're following Sergeant Randy Shorter in his third tour of duty from Forward Operating Base Rushmore in Paktika Province (ph).

Our Jason Carroll sat down for a very candid discussion with our soldiers. And he joins us now live from Kabul. And the one thing you always find is that they have a great attitude in their head pretty much totally in the game -- Jason.

JASON CARROLL, CNN NATIONAL CORRESPONDENT: That's exactly what it is, totally in the game, completely wanting to get to the mission. It's a long time in terms of getting here. There were a few delays, a few stops and starts. That's how it works sometimes in Afghanistan especially, during the surge when you have a lot of troops trying to get into a specific area.

But Sergeant Randy Shorter and his men are finally out there starting the mission. Located about an hour or so south of here, depending upon how good the roads are. And oftentimes they are not very good.

But we were there with them as they started their mission, John and Kiran. It was fascinating to see them as they were engaging the Afghan people. We went out with them on security patrols. We were there for every step of the process.

And just a -- just a short while ago before we -- we took off, we got the guys together and we said what we would like do is get you all together and talk about what's on your mind. And of course, war was issue number one. So we got their opinions about the war and about the special bond that they all seem to share.

(BEGIN VIDEOTAPE)

SPC. FRANK WHORTON, U.S. ARMY: We are not trying to fight them at all. All we do is protect ourselves. We are just trying to keep these people together. Get them built up to where they can take care of themselves.

PVT. TERRENCE LEE ARMSTRONG, U.S. ARMY: I think it's the fear of what's going to happen next. You never know what's behind that corner, what's going to -- you know, you just never know what's going to happen so --

SGT. RANDY SHORTER, U.S. ARMY: You have to understand, too, you know, it's not like a common war. You know, we are fighting guys behind -- behind civilian clothes embedded with the population.

CARROLL (on camera): Where do you think the bond between you guys comes from?

SGT. CHARON RICHARDSON: I think it's the -- sweating with them. You bleed with them, you sweat with them. These are your brothers. Like -- like when we deploy, my problems are their problems. Their problems are my problems. We share that among each other. And you can't get no tighter than that that.

SSG. ANTHONY COOK, U.S. ARMY: And everybody knows that we are here for each other and love each other. And we know that we're each other's brothers. So we understand that we are going to get mad at times. We're going to get frustrated.

But at the end of the day we know hey, we are here. I'm still here. You are still here. We are going to make it. And that's what it's all about just making sure that we're together 100 percent.

(END VIDEOTAPE)

CARROLL: And the deployment will last for one year for all of the men in the unit down there at Forward Operating Base Rushmore.

Even though we are pulling out now, John and Kiran, it's just for this particular point but what we are going to be doing is bringing all the material back with us, we're going to be putting it together as part of our special series that we've been doing called "A Soldier's Story."

As soon as I get an opportunity to get back to New York and put it all together I'm anxious for you to see all of the material and see these men at work -- John, Kiran.

CHETRY: Yes, it is going to be great to see, Jason. And talking about the soldiers, I mean, part of the big task that they have is the diplomacy with the people that they are dealing with everyday in the Afghan communities. What is that relationship like?

CARROLL: Well, it -- it -- it can be a very good relationship depending upon some of the villagers that they go to. And in some cases, it can be a little bit tense. At one point in fact, we went to a large meeting of the village elders. And most of them were very receptive to the soldiers who were there in terms of hearing what they wanted to say.

But then again, there were some in the back of the room, definitely when we left the meeting I was told that they were definitely leaning towards the Taliban. So it's -- it's a long process, a process that will definitely take the time that they are here.

ROBERTS: You know Jason we've seen the constant threat from improvised explosive devices. But suicide bombings have been more frequently used by Taliban militants and insurgents. What are they on highest alert for while on patrol? What's the greatest danger that they face?

CARROLL: In the region where they are, John, it really is these improvised explosive devices, IEDs. So many of the roads down in these remote areas in the south, they're not paved. It's very easy to hide something. And -- and I have to tell you, all of the soldiers are -- are telling me that the insurgents are getting smarter, they are becoming better fighters.

So this war is really about planting and setting IEDs and then the troops responding to that. But they are getting much better at doing it and they are adapting very quickly -- John.

ROBERTS: (AUDIO GAP) while you've been in Afghanistan -- Jason, we will see you back here real soon.

It is now 56 minutes after the hour.

(COMMERCIAL BREAK)

ROBERTS: Lots happening today. President Obama heading to Cleveland this morning to talk about the economy and his $350 billion plan to stimulate it. Of course, CNN will bring you his speech live at 2:00 p.m. Eastern Time from the west campus of Cuyahoga Community College.

CHETRY: And you want to keep watching because at 9:00 Eastern tonight, there is an exclusive interview with Imam Feisal Abdul Rauf. He's the man behind the planned Islamic center and mosque near Ground Zero. He's going to be speaking to Soledad O'Brien about the controversy. She is fillings in tonight on "LARRY KING LIVE" 9:00 Eastern, right here on CNN.

And directly following at ten clock, Anderson Cooper will have reaction to the imam interview on "AC360".

ROBERTS: Continue the conversation on today's stories. Go to our blog at cnn.com/amfix. Thanks so much for joining thus morning. We will see you back here again bright and early tomorrow.

CHETRY: And the news continues. "CNN NEWSROOM" with Kyra Phillips starts right now.