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Obama to Unveil Debt Reduction Plan; Class Warfare over Debt; Troy David Clemency Hearing; Strauss-Kahn Breaks His Silence; Air Show Horror; Stocks Set to Sell Off; Protesters "Occupy Wall Street"; Netflix Splits into Two Services; Emmy Awards Review
Aired September 19, 2011 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Good morning, guys. Thanks so much.
In just about 90 minutes, President Obama will be talking to us about a new tax rate for millionaires, part of his plan to reduce the nation's debt. Now outrage Republicans call it class warfare and they say the fight is on.
Brianna Keilar looks at the politics. Christine Romans identifies the people. And who else besides millionaires could pay for the price of these cuts?
Brianna, let's go ahead and start with you. Let's break it down. Where exactly will the $3 trillion come from?
BRIANNA KEILAR, CNN WHITE HOUSE CORRESPONDENT: So $3 trillion over 10 years in deficit savings, Kyra. The plan from the White House would have $580 billion in spending cuts, some of which would be to Medicare and Medicaid. But the biggest chunk, $1.5 trillion, that's half of the president's plan, would come from increasing taxes.
We're talking about on wealthy Americans. Some of the taxes that we've talked about before, limiting those itemized deductions that the wealthy take. Closing loopholes on hedge fund managers, oil and gas companies, corporate jet owners and also letting the Bush era tax cuts for the wealthiest Americans expire when they are set to.
Also a little more than $1 trillion in war savings. Of course, we do know that the wars in Afghanistan and Iraq are already going to be winding down. And that's something that Republicans are hitting on. And frequently both sides have used this when they do their math.
And then also interest savings, Kyra. $430 billion there the White House says, and that's because if you don't owe the money, you don't have to pay interest on it so the money would be saved there -- Kyra.
PHILLIPS: All right. Brianna Keilar there at the White House watching this for us all the way up to the president's speech.
Also Christine Romans, let's go ahead and break it down and talk specifically about which Americans will pay for these cuts.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, let's talk about the Buffett rule. This millionaire tax increase. By some analysis, you've got from millionaires an effective tax rate of about 22 percent, that's down from 31 percent in 1996. So the president would like to raise taxes.
The overall tax rate for people who make $1 million or more, that's the Buffett rule. Taxing them more.
He also wants to let the Bush era tax cuts expire. That's $800 billion. That would affect couples making $250,000 or more a year, or individuals making $200,000 more a year.
He wants to cap itemized deductions. A lot of people will be curious to see if he is talking about the mortgage -- mortgage tax deduction for high earners. There's also in there an interest deduction on municipal bonds that could go away as well. And he wants to close the tax loopholes, about $300 billion, that would be oil and gas companies and corporate tax loopholes.
Now one thing we've been zeroing in on, perhaps unintended consequences of this muni bond tax deductions that rich people get, everybody gets, frankly, but rich people get it, too, there are some who are concerned that it actually could raise the cost of municipalities, cities and towns and states, being able to borrow money to do infrastructure build-outs, to build schools and the like.
So there's some concern about unintended consequences in that arena. But overall, that's where it stands on the tax hikes for the rich -- Kyra.
PHILLIPS: And, Brianna, you know, Republican opposition, it's strong. So question remains, whether this could --
KEILAR: Hi, yes.
PHILLIPS: Are you with me, Brianna?
KEILAR: I've been switched to CNNi.
PHILLIPS: OK. Brianna, you see what happens when we're talking about something obviously so big, Christine.
I'm explaining to our viewers, you know, Brianna, and you do this too. You know you're talking to us, then talking you're talking with International, and so we'll bring her back and talk about the fact that Republican opposition is so strong. We'll be talking more about it.
ROMANS: It is very strong.
PHILLIPS: Yes. How they've been reacting. That's coming up with our political panel.
All right. Christine, thanks so much.
All right. Now let's talk about how Americans in general just feel about this plan and taxing the rich. Deputy political director Paul Steinhauser, I know he's connected with us this morning and hears us well.
And you might even be able to address the strong Republican opposition. We saw it over the weekend. The Republican representative from Wisconsin talking to our Candy Crowley, Republicans Ryan, about this. But you also got the polls capturing the public sentiment about how they feel about it -- Paul.
PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: And Kyra, yes, I'm talking just to you and your viewers, of course.
Yes, strong Republican opposition. I think you could say part of this plan, parts of the plan, are already probably dead on arrival at least in the Republican controlled House. And yes, the budget chairman Ryan talking to our Candy Crowley in "STATE OF THE UNION" making his -- making his points pretty strongly yesterday.
Well, talk about the poll, take a look at this. This is from CNN and ORC. We did it about a month ago, Kyra, right after the creation of that super committee to lower the deficit. And look what we asked just on that alone, on whether taxes should be raised on wealthy Americans and businesses, you can see right there, yes, a strong majority of Americans say yes, 63 percent say yes, 36 percent say no. There should not be an increase on taxes on higher income Americans and businesses.
Go to the next number as well, Kyra, where we break it down by parties. And yes, there is that obvious as expected partisan divide. Democrats overwhelmingly support this plan. Republicans six out of 10 against it. Independents, though, yes, they support it as well. The majority -- strong majority of independents support the idea.
And Kyra, there is an election 14 months from now. So maybe this is part of that as well. The president shoring up his base, the Democrats. And also this could be a strong issue with independents who seem to favor it.
Kyra, back to you.
PHILLIPS: Paul, thanks.
Well, just two days until he's scheduled to die, it's Troy Davis' last help. Right now, testimony is going on before the Georgia Board of Pardons and Paroles right here in Atlanta where the board is considering a final clemency bid.
Davis was convicted of murdering a police officer two decades ago. But after seven of the nine witnesses recanted their testimony, calls to stop the execution have come from a wide coalition, including the Pope and former president Jimmy Carter.
Our David Mattingly is at the Board of Pardons right now just down the street.
David, what can you tell us?
DAVID MATTINGLY, CNN NATIONAL CORRESPONDENT (via phone): Kyra, people taking their places at the board meeting right now. We watched his attorneys walk in as well as Davis' family members. And this is really it for him. He has exhausted all legal appeals.
He's been before this board a couple of times before. The last time in 2008. The board denied him clemency. But this time his many supporters are hoping that there are -- since there are three new members on the board that there will be three pairs of fresh ears and fresh eyes to look at this case, and perhaps their votes might go differently and give him what he needs to obtain clemency and get off of death row and avoid his execution scheduled for Wednesday.
His attorneys will be armed with a lot of information talking about the witnesses that have recanted their statements. Also other people who have come forward in the last 20 years implicating someone else in the shooting.
Again, it's all down to this board. They have the power of life and death in this case. And Troy Davis will literally be fighting for his life -- Kyra.
PHILLIPS: And at the same time, we can't forget the police officer, David, that was killed. And that's Mark MacPhail. And his mother has come forward saying, you know, that it's just advocacy groups that have created this tremendous amount of response, and that they don't understand all the circumstances behind this murder.
What else is she saying about this as it comes so close? I mean just two days away.
MATTINGLY: Everyone close to this case who has been involved in prosecuting has stood by this prosecution. MacPhail's family says that they want some peace, they want this over. And the prosecutors early on in this case have pointed out that this has stood the test of time and the test of the judicial review as it's gone through the state and federal level.
It has been looked at by countless judges. And at this point, there are no more legal appeals for Davis. This has been vetted completely by the courts, and now it comes down to this one last hearing in front of this one appointed board to decide whether or not he should be granted life in prison or life in prison without parole.
PHILLIPS: And as we mentioned, David, a lot of dignitaries, musicians, actors coming forward hoping that his life will be spared.
And Amy Ray from Indigo Girls is going to join us live this hour. She has also been a part of those protests.
OK, for the first time since the charges were dropped, the former head of the International Monetary Fund is speaking out about his New York sexual assault case.
Zain Verjee joins me now from London.
Dominique Strauss-Kahn admits, how did he put it, moral weakness, Zain? What else is he saying? ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: A moral weakness, moral error, moral failure is what Dominique Strauss-Kahn said to a French news station.
Kyra, he was accused of assaulting a hotel maid in Manhattan and that case was dropped because her credibility was then thrown into question. This is the first time he is speaking out. The rest of the world, the French public, was totally gripped.
Listen to how he puts it in his words.
(BEGIN VIDEO CLIP)
DOMINIQUE STRAUSS-KAHN, FORMER IMF DIRECTOR (Through Translator): I understand that this shocked people. I paid a heavy price. I continue to pay. I have lost a lot in this story. You know, for the past four months, I have observed the pain that I have created around me, and I have really thought about this. I have lost a certain lightness forever.
(END OF VIDEO CLIP)
VERJEE: Kyra, he also apologized to his family, to the French public. He said he was so sorry that this had happened, and he really had some major regrets about it.
Now the hotel maid's lawyer also watching this interview said, you know what? Dominique Strauss-Kahn never once in the interview said exactly what happened in the hotel room. And he's insisting that there is enough evidence still to prove that there was an assault. Nevertheless, they are going to pursue a civil case.
Kyra, I just want to show you this one headline from the UK, it's in "The Independent." And this is what it says, it says, "Regrets? I have a few. Strauss-Kahn hopes TV interview can re-launch career." It says, "Dominique Strauss Kahn attempted to restore his shattered reputation on French television news despite a feminist demonstration and a poll suggesting he had little future in French politics" -- Kyra.
PHILLIPS: Zain Verjee out of London. Zain, thanks.
And up next, the video is chilling. A vintage airplane slams into the ground at the Reno Air Show. What went wrong? Investigators say they have now found critical evidence in the deadly crash.
And more than two dozen TSA employees at the major airport -- at a major airport are out of a job. What they failed to do, next.
(COMMERCIAL BREAK)
PHILLIPS: Checking stories "Cross Country" now.
In San Diego, take a look at this. Pretty scary moment during a drag boat race. Witnesses say the driver's engine exploded, and the cockpit with the driver still inside, then shot about 15 feet into the air. He was taken to a nearby hospital.
And in Hawaii, the Transportation Security Administration says 28 of its employees are out of a job. An investigation found bags were allowed onto planes at Honolulu International Airport without being properly screened. Another 15 people have been suspended.
And investigators say two cousins camping are to blame for the largest forest fire in Arizona history. It burned more than half a million acres in Arizona and New Mexico. The men will appear in flagstaff federal court today.
And this video from the Reno Air races is chilling. A vintage World War II plane crashes just in front of the stands, disintegrating upon impact and killing nine people. Now investigators say that a recording device found at the scene may help determine what caused the crash.
Here's what a spectator told us about the moment the plane slammed into the ground.
(BEGIN VIDEO CLIP)
ED LARSON, INJURED AIR RACE SPECTATOR: A second later, the thing crashes right behind me, and I get -- all I remember is I am trying to run, as I see stuff coming. And then that's the last thing I remember.
(END OF VIDEO CLIP)
PHILLIPS: Dan Simon is in Reno.
Dan, we're also hearing that part of the plane's tail were found. Is that right? And how helpful is that in the investigation at this point?
DAN SIMON, CNN CORRESPONDENT: Well, it could be very helpful. A lot of attention focused on the tail of that P-51. Pictures and videos clearly show something coming off of that tail midflight.
Over the weekend, crews obviously, the canvassed the debris field and found what appears to be part of that tail. It's going to be shipped off to the NTSB lab in Washington for analysis.
And crews also telling us that the plane was equipped with a video camera. And that some memory cards were found near the scene. It's not clear if those cards go with the camera. Again, that will be analyzed again in Washington.
And we are also learning that the plane was equipped with sort of a crude form of black box that recorded certain information such as oil pressure, speed, GPS. That information was wirelessly transmitted to the flight crew. So, that's something that can also be analyzed.
Meanwhile, we are still hearing these amazing and chilling accounts from witnesses. We spoke to a nurse who was among the first to arrive at the scene. Take a look. (BEGIN VIDEO CLIP)
JULIE MORGAN, NURSE: The impact of the aircraft was significant. And the debris field was wide. And it was very traumatic.
They have a long road ahead of 'em. They'll have prosthetics. They'll have therapy. They'll have to learn to reuse their body.
(END VIDEO CLIP)
SIMON: Well, the approximately 70 patients who were taken to area hospitals, 30 remain there. And about six of them are still in critical condition -- Kyra.
PHILLIPS: All right, Dan Simon there in Reno, Nevada, for us -- Dan, thanks.
And coming up, Italy's departing prime minister is bragging now about his stamina with a whole line of ladies. And guess what? It's all caught on tape.
(COMMERCIAL BREAK)
PHILLIPS: Well, Italian Prime Minister Silvio Berlusconi doesn't embarrass easily. So, I wonder how he's feeling now that some taped conversations about his stamina have just been leaked to the media.
Zain Verjee is here with all the details -- Zain.
ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: Kyra, I have two words for you -- bunga bunga.
PHILLIPS: Everybody knows about the parties by now.
VERJEE: You know, this was an investigation of prostitution. And guess who showed up on these taped transcripts? The Italian Prime Minister Silvio Berlusconi.
Now, this is all out -- the transcripts in the Italian newspapers. And just to give you a bit of the flavor of some of the things. In one instance, there were 11 women, 11, lined up outside Silvio Berlusconi's room, all of whom were supposed to have sex with him. In this transcript, he is quoted reportedly as saying he can only manage eight of them, Kyra.
If you look at another transcript, there's a situation where he apologized to a young dancer called Marysthell. Now, she was really complaining to him, saying, you know what, you're not spending enough time to me. And he says this, "You know, Marysthell, in my spare time, I am the prime minister" -- Kyra.
PHILLIPS: He's quite the ego, which is pretty much how most Italians feel, right?
VERJEE: Right. Right. Well, you know, it's interesting, because when all of this bunga bunga stuff was coming out early on, Italians were like, you know what? What he does in his spare time is his own business. But in this situation, his popularity has actually dropped now to something like 20 percent. And they are saying, hang on a minute, we are supposed to have all of these austerity programs and cuts to government spending and things like that.
And the prime minister is using taxpayers' money to get hookers, using government planes to go to all of the cities that he wants. And so, that's actually kind of the issue. It's less even the moral thing here, but it's also they are using taxpayers' money at a time of major recession so he can have a good time, he can have some bunga bunga -- Kyra.
PHILLIPS: I think -- well, we'll move on. Zain, thank you.
VERJEE: No, let's not --
PHILLIPS: I think he's talking about it.
I want to move to a different discussion about the economy. How about maybe a selloff on Wall Street this morning?
Alison Kosik at the New York Stock Exchange.
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Sure, why not?
PHILLIPS: Why not?
KOSIK: Let's talk about a selloff.
PHILLIPS: Yes, not a lot of people partying over this.
KOSIK: No, no, no. Get ready to take the plunge with me. Dow futures down now about 160 to 170. And guess what? The focus remains on Greece.
And what you're about to see happen with the U.S. markets. It's going to follow the selloff in Europe. Markets in Shanghai, Hong Kong, Europe, all down around 1 percent to 3 percent each.
We are watching bank stocks around the world dropping. We're talking about Goldman Sachs, Citigroup, JPMorgan, BNP Paribas. This is all about these continuing worries about the possibility of Greece defaulting. It's looking more and more likely as time goes on -- Kyra.
PHILLIPS: All right. And Greece has been the news for more than a year. And it seems like the urgency picking up once again.
KOSIK: It is, because it's that clock ticking. Tick tock. You know, time is running out for Greece. Analysts are saying, you know what, Greece is getting closer to running out of money. We still don't have a commitment from institutions that are involved in shoring up financing.
And you know what? We got no agreement on these tougher austerity measures that have to go into effect. So, your E.U. finance ministers, they met over the weekend. Not much substantial progress was made there. What they decided to do is wait until October before giving Greece's next round of funding.
And guess what? Greece has a debt payment that's due in mid-October. So, talk about really going down to the wire here. And, really, it's a great unknown if Greece is going to default. It's a great unknown as to how this is going to affect -- how it's going to affect Europe, how it's going to sort of have that domino effect here in the U.S. markets.
The E.U., IMF, both holding conference calls today to discuss the matter. We'll see what comes out of that, if anything -- Kyra.
PHILLIPS: All right. Alison, thanks.
Well, they say they are marching for people, not profits. We're going to take you to Wall Street where hundreds of protesters say they have been inspired by the Arab uprising. Their message, straight ahead.
And about an hour away from President Obama's speech in the Rose Garden. He is expected to unveil his plan to cut the national debt by roughly $3 trillion over the next decade. We're going to take you there live.
(COMMERCIAL BREAK)
PHILLIPS: Top stories now:
The Palestinian Authority will try to get full membership into the U.N. this week. But the U.S., which has veto power on the Security Council, has said it would deny any request for membership.
President Obama is unveiling his plan to cut the national debt next hour. It includes higher tax rate for millionaires. CNN will have live coverage of the president's speech 10:30 Eastern Time.
And a Georgia parole board today considers clemency for death row inmate Troy Davis. Davis' supporters say he was wrongly convicted. He is scheduled to die on Wednesday.
On Wall Street, the opening bell has just rung. But outside, protesters have been gathering to voice their outrage over the nation's economy.
And, Christine Romans, it all got started as a movement on Twitter and Facebook, right?
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Right. And over the weekend, some 500 people occupied Wall Street in the area close to the New York Stock Exchange as a protest, Kyra, to growing income inequality in this country. And also spearheaded by the activist magazine "Adbusters" to try to say there needs to be some justice for financial perpetrators of what happened to America.
That was over the weekend. This is Saturday, when the biggest crowd -- we're told there's about 75 people down there today. But, again, using social media to try to drum up interest in, hey, what's going on? Why do the haves have so much more and the have-nots have so much less? So, clearly, an idea that's resonating on the occupation of Wall Street. Stop trading our future, lots of pretty clever science down there.
But, again, not as many people as there were over the weekend. Some 500 people down there this weekend.
PHILLIPS: And I apologize. We said that the opening bell had just rung. We were a little early there. We got about a minute and a half.
So, I imagine, you know, the protests will increase once we know those numbers. And we'll see how it impacts the markets.
ROMANS: We have seen these things from time to time. And I'll tell you, it's usually the same kind of -- you know, sometimes it's less focused, the opposition, to what's happening in corporate America is a little bit less focused.
But nowadays, you've been hearing from a lot of people. They've been saying, wait, these big companies are sitting on $2 trillion in cash. They are not hiring anybody. No one has been sort of arrested or charged for all of the bubble -- the bubble talk that led to this crisis, the housing crisis.
And so what, who's paying? And there's sort of just an uneasy feeling in America, and I think you probably heard it, too, that the little guy pays and the big guy goes away off scot-free. And it's an idea or a sentiment that the president will be tapping into when he gives this deficit reduction speech because much of what he's trying to achieve will come by taxing the rich.
So, it's at least politically a theory that it looks like this president's deficit reduction plan is trying to tap into, Kyra.
PHILLIPS: All right. Christine Romans, thanks so much.
And as Christine just mentioned, you know, President Obama is about to propose a new tax rate for millionaires. It's called the Buffett Rule. And it's referring to billionaire Warren Buffett, who is complaining that wealthy Americans pay less than their fair share in taxes.
Bottom line: taxes for the rich, is that fair?
CNN contributors Will Cain and LZ Granderson are weighing in on this, this morning.
LZ, fair?
LZ GRANDERSON, CNN CONTRIBUTOR: Well, I guess it is, because we have allowed the system, the tax code, to rotten things to the point in which we're running out of other options. You know, I believe the number is 20 percent of the population controlling 80 percent of the wealth. So when you look at that kind of number, you're going to have a lot of poor people. You've got to find ways in which you to balance things out so that society can be more fair for everyone. So we are where we are now, and so yes, I do think at this point that is fair.
PHILLIPS: Will?
WILL CAIN, CNN CONTRIBUTOR: You know, Kyra, fair is a four-letter word. And it's a four-letter word that has a subjective meaning. To me, it means everybody pays about the same percentage. But that being said, we can all recognize there are some unfairnesses in the tax code.
It is unfair that a millionaire might pay less in his effective taxes than his secretary. It is unfair that the tax code honors homeowners over renters. It's unfair that people that get their health insurance through their company aren't taxed on it, while people that buy it themselves are.
What I'm saying to you is, there are a lot of unfairnesses. And Obama's new plan is simply a patch, it's another section in the tax code, another line, another entry to add to the complexity of the tax code that quite honestly benefits the people that know how to negotiate it.
PHILLIPS: Senator Lindsey Graham telling our Candy Crowley over the weekend this is just class warfare.
Take a listen.
(BEGIN VIDEO CLIP)
SEN. LINDSEY GRAHAM (R), SOUTH CAROLINA: When you pick one area of the economy, and say we're going to tax those people because most people are not those people, that's class warfare.
(END VIDEO CLIP)
GRANDERSON: You know what, I am so over this dude. I really am. To me, when you look at the fact that people who make more money have better health care and have a longer life expectancy than people who don't have more money, to me that is class warfare.
When you know that the education for people with money is greater than the education for people without money, and thus recycling the same process of staying with them poverty, to me, that's class warfare. I am so over Lindsey playing politics and now trying to throw words around to scare people.
PHILLIPS: Even House Budget Committee Chair Paul Ryan of Wisconsin said, quote, "Class warfare may make for good politics, but it makes more rotten economics."
Will? CAIN: Look, LZ, I have to be honest with you. The president is the one playing politics here. If you added the fact that, look, I said this plan doesn't help fix the problems in the tax code.
And look, by their estimate, there's something like 22,000 people that might be affected by this new rule. That would add about $19 billion to the federal revenues. So if it doesn't add that much money, and it doesn't fix the unfairness in the tax code, what you're left with -- and by the way, add it to also we're going to let the Bush tax cuts expire for the wealthy and do away with deductions for the wealthy. You begin to put this picture together that the theme is this big populist class warfare message of basically, let's just go get the rich guy. We don't need to fix the other problems. Let's just go get the rich guy.
GRANDERSON: Wow, Will. Wow. I can't even believe that. At least you're saying "rich," and not using the words like "job creator" to dilute the conversation. At least you're manning up and saying rich.
CAIN: Oh, well, at least we're talking about millionaires now and not people that make over $250,000.
PHILLIPS: Guys, we'll be watching that --
GRANDERSON: Touche.
PHILLIPS: We will be -- hey, there we go. Perfect. We got the touche. All right. We're about 50 minutes away from the speech. Gentlemen, I'll let you weigh in after that.
Coming up, just two days until his scheduled execution. But convicted cop killer Troy Davis has hundreds of thousands of people fighting to stop it. Amy Ray from "The Indigo Girls" is one of them. She joins me live.
And later, a big shakeup at Netflix and why the CEO is apologizing.
(COMMERCIAL BREAK)
PHILLIPS: So many of us remember that song.
For 25 years, folk duo "The Indigo Girls" have brought us music with a message. From the environment, to gay rights, to campaigning against the death penalty, which brings us to musician Amy Ray and why she is with me this morning.
This Indigo Girl is one of the hundreds of thousands of people worldwide, from a former president on up to the pope, who is fighting to spare convicted killer Troy Davis. Davis is actually scheduled to die at 7:00 p.m. Wednesday in the murder of Savannah police officer Mark MacPhail.
Just last week, the NAACP and Amnesty International presented petitions to the State Parole Board with more than 600,000 signatures supporting Davis, hoping that his life will be spared.
Amy, why have you and Emily been so involved in this case?
AMY RAY, MUSICIAN, "INDIGO GIRLS": Well, I mean, for faith-based reasons we are opposed to the death penalty generally, because we feel like the justice system is human and flawed, and we don't feel like we should be the ones deciding those things.
But in this particular case, the sort of stopgap at the end is the Board of Pardons and Parole. And we feel like we want to appeal to them to say, look, there's reasonable doubt in this case. Seven out of nine witnesses have recanted. People like Bob Barr and Jimmy Carter on opposite sides of the political spectrum are against his death sentence. And there's just too much doubt. And there's too much reasonable doubt. And so we feel like this is the last sort of place where you can appeal to clemency. And we got involved because we feel like we couldn't be silent about it.
PHILLIPS: Well, as you've looked at all of the information over the two decades, right, that had has --
RAY: Right.
PHILLIPS: Do you think he's innocent?
RAY: I mean, I don't want to say that, you know. I feel in my heart from hearing what people say, I feel that he is. But I also, I don't know every little detail of the case.
My position is because I think our justice system is fallible. And I have looked at the evidence and said, there's reasonable doubt here. And with so many witnesses recanting, and people on the jury even changing their minds after the fact.
I feel like, you know this is one case where if I was having to decide, I couldn't -- even if I was for the death penalty, I couldn't do that and have like a clean -- a clear conscience about it, you know.
PHILLIPS: What are you going to do up to the point of Wednesday? You guys have already been at rallies. You've played live.
RAY: Yes.
PHILLIPS: You have spoken to hundreds of thousands of people.
RAY: Well, there is a vigil downtown on Sloppy Floyd Building. And I'll probably drop by that. And I'll be thinking about it. I'll be making some just tweets, you know, and just appealing. But at this point, the parole board is meeting. And, you know, it's going to be -- it's really up to sort of what happens in their consciousness, I think, at this point.
PHILLIPS: You say it's for you it's very much faith based. Are you -- you're not only at the rallies, you're not only singing, you're not only talking about it, are you getting involved in prayer?
RAY: I'm praying to my greater power. And I went to an amazing service at Ebenezer Baptist Church, home of Martin Luther King Jr, which was --
PHILLIPS: Which is pretty incredible, by the way. For those that haven't been to Atlanta and been to that church.
RAY: Just the feeling there --
PHILLIPS: It's like stepping back in time.
RAY: Yes. And it was a nondenominational service. There were rabbis there and people from the Islam tradition and all faiths, speaking, and it was amazing.
PHILLIPS: Final question, because I have to ask you this. You know, the mom of Mark MacPhail...
RAY: Yes.
PHILLIPS:...the slain police officer has come forward and said, look, all of this advocacy, all these groups, they are just coming forward because of the names that are being brought in, and people really don't understand the circumstances behind this case. They just -- they don't get it. And we want everybody to butt out. And she's had strong words.
RAY: Sure.
PHILLIPS: What do you say to the mom of the slain officer?
RAY: I mean, I'm -- I have compassion for her. And I also feel so saddened by the murder. You know, heinous crime. And I think I would just say I'm not here to witness to whether he is innocent or guilty. I'm here to say there is reasonable doubt. And I believe this very strongly. And I don't know what else you can say, because that loss is so huge and the sadness is so huge that I feel compassion for her and for the loss.
And, you know, at the service, a lot of prayer was said about that, too. And a lot of people witnessed about that. So, you know, that's important. But I don't even know what you could say to that loss. I mean, it's just so sad. But I don't believe the death penalty deters crime. I don't believe it -- I believe it's flawed because our justice system is very classist and racist because of the access to resources.
And so I believe that, you know, someone -- even if someone is guilty, life in prison is what I believe in, you know. And I don't know, I can't attest to his guilt or innocence, but I can say there's reasonable doubt. And I just don't think it's right to put someone to death when there is.
PHILLIPS: Amy Ray, thanks for stopping by.
(CROSSTALK)
RAY: I really appreciate. Thanks for having me.
PHILLIPS: All right. You bet.
And you can still get the red envelopes, by the way. It won't be Netflix anymore. We're going to explain why it is changing and why the CEO is now saying, I'm sorry.
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PHILLIPS: Well, the Netflix saga continues. The DVD by mail service is splitting into two companies now, and the CEO is actually coming forward and apologizing.
Alison Kosik is at the New York Stock Exchange. So what do subscribers need to know?
ALISON KOSIK, CNN CORRESPODENT: And, you know, it's funny how you refer to as it as a saga. And it's really, really turned into that. So what's new here that you need to know if you Netflix is what Netflix is doing is separating DVD and it's separating that from its streaming services.
Now DVD by mail has a new name. It's called Quickster. Don't you love that name. It's also going to include video games, and its streaming service will still be called Netflix.
Now these are two separate Web sites as well, two separate accounts, and two separate charges on your credit card if you do wind up wanting both. Now Netflix, as you know, has been struggling since July when it went ahead and raised its prices, and we watched the stock fall almost 50 percent since then.
Why? Because the customers are ticked off, they jumped ship, and their subscriber rates are forecast to go down.
You know, it's a big change for a company that's been growing like crazy. And of course it's CEO not happy to see that share price really take a dive like that -- Kyra.
PHILLIPS: And so what's all the talk about the apology from the CEO? Is he apologizing for raising prices?
KOSIK: No. He is not apologizing for raising prices. He is actually -- because those price hikes, by the way, are still in place. What he is apologizing for is sort of a failure to communicate. He is apologizing for how he handled the situation.
He says he's trying to keep Netflix up to date by improving streaming, and he doesn't want to suffer the same fate as Borders. And we all know what happened to Borders. So what he says he had to do was raise prices or you know what, he'd wind up falling behind the technology curve.
But he failed to tell customers all of this. So he came out on his -- on his blog and he sent out an email to all of the members of Netflix, and he said, "You know what, when Netflix is evolving rapidly, I need to be extra communicative. This is -- this is the key -- the key thing that I got wrong. In hindsight, I slid into arrogance against based upon past success. We have done very well for a long time by steadily improving our service without doing much CEO communication".
So he's going out there with his mea culpa, hoping to win back those customers that jumped ship. But you know what, a lot of these customers, Kyra -- you have Netflix, right? Many say that the streaming options really leave much to be desired.
You know, there's not a huge library to choose from. So when you raise those prices and those selections aren't -- aren't that -- you know, aren't that varied, it's hard to -- to understand why they did that, right?
PHILLIPS: Yes. And yes, I am a Netflix I guess member is how you'd say it, right. So I was curious to know how this was all are going to go down.
All right, let's check those markets, shall we. We're about 20 minutes in since the bell.
KOSIK: Exactly. We are watching stocks fall. The Dow is down 214 points. It's more about Greece, the worries about Greece defaulting on its debt. Those worries kind of grew louder over the weekend. The big worry is that Greece could miss a big payment coming up in October. We're going to keep an eye on the numbers for you -- Kyra.
PHILLIPS: All right, Alison thanks.
Well, the fight to stop bullying got some reinforcement today. Time Warner, the parent company of CNN and Facebook, officially announced its "Stop Bullying Speak up App". It's an interactive social media pledge that aims to educate and empower people of all ages to recruit and join the fight to help stop bullying.
So once you log on to Facebook, search "Stop the Bullying, Speak Up", and you'll see our very own Anderson Cooper with a message on how to take part.
Coming up, some familiar faces collected Emmys last night. But there were a few surprises as well, including one of the presenters. We'll wrap things up for you.
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PHILLIPS: Checking stories making news later today.
10:30 Eastern, President Obama unveiling his new plan to cut the nation's debt. We will take that live.
And at noon Eastern, a hearing is being held into the involuntary manslaughter charge against Conrad Murray, Michael Jackson's doctor.
And 5:30 Eastern, a pre-sentencing hearing begins for James Ray, the self-described spiritual guru convicted of negligent homicide in the 2009 deaths of three people in the sweat lodge ceremony.
Well, it's kind of a mixed bag at last night's Emmys. We saw TV veterans is taking home even more awards and a few newbie shaking things up. Here is "Showbiz Tonight's" Kareen Wynter.
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: And the Emmy goes to -- "Modern Family".
KAREEN WYNTER, HLN CORRESPONDENT, "SHOWBIZ TONIGHT" (voice-over): The Emmys celebrate the best in original television but in the end, it was all about repeats. "Modern Family" repeated as best comedy.
UNIDENTIFIED MALE: Thank you.
WYNTER: The show about a non-traditional extended family has won TV's top prize in each of its first two seasons.
UNIDENTIFIED FEMALE: "Mad Men".
WYNTER: "Mad Men's" repeat was even more impressive. The '60s era series won best drama for the fourth consecutive time, beating back a challenge from newcomer "Boardwalk Empire".
UNIDENTIFIED MALE: -- for us and our families this is an incredible dream. Thank you.
WYNTER: While the show was honored "Mad Men's" leading man lost out as best actor in a drama. That went instead to Kyle Chandler of "Friday Night Lights". Best actress in a drama went to "The Good Wife's" Juliana Margulies.
(on camera): Glee's Jane Lynch pulled double duty Emmy night, not only was she nominated in the best supporting actress comedy category but she also hosted the show. She pre-taped a vid with the cast of "Jersey Shore" and tossed gentle zingers at the stars, including an 89-year-old nominee.
JANE LYNCH, ACTRESS: Oh, there's Betty White. She's the reason we start the show at 5:00 p.m.
WYNTER: Lynch may have scored as host but she lost the Emmy to "Modern Family's" Julie Bowen. Not that she was bitter about it.
LYNCH: There are losers and I am one, and it hurts.
WYNTER: Julie Bowen's TV husband Ty Burrell won for supporting actor in comedy. Onstage he paid tribute to his late father acknowledging he might find it strange that his son wears makeup at work.
TY BURRELL, ACTOR: -- I would say, Dad just think of me as a very masculine lady, and he would say, I do, son.
WYNTER: One of the nice surprises came not in an award but from a presenter. A subdued Charlie Sheen fired from "Two and a Half Men" last season made a surprise appearance to announce best actor in a comedy. He offered best wishes to his old show.
CHARLIE SHEEN, ACTOR: -- and I know you will continue to make great television. WYNTER: Best actor in a comedy went to Jim Parsons of the "Big Bang Theory" in another repeat. He won last year, too, but best actress in a comedy did got to a newcomer. Melissa McCarthy of "Mike & Molly" who was jokingly topped to wear the tiara.
MELISSA MCCARTHY, ACTRESS: Oh it's my first and best pageant ever.
In a billion years I didn't think that was going to happen. Not at all.
WYNTER: It was a night for all of TV's best to claim their crowns.
(END VIDEOTAPE)
PHILLIPS: Kareen, a few more surprise winners last night, right? But we saw in your piece, there's also a surprise presenter, Charlie Sheen.
So I'm curious what the mood was inside the theater when he came onstage? Did you think people got a little nervous?
WYNTER: They did. Because you know what whenever you see Charlie you never know what to expect -- Kyra.
That what it makes this stuff exciting, I guess. But I have to say, there was so much buzz on the red carpet when we heard all these rumblings that he may appear. People were thinking, what are the producers, thinking? But also it would make for great TV.
So you saw him hit the stage. He just wanted to clear the air and apologize, and he did all that. And I think what made it a little uncomfortable was that people were on pins and needles. They waiting for him to make a joke. Say something inappropriate. He didn't. He just dove right into the nominees.
It was nice thought to see, Kyra, during that awkward moment when he apologized, it flashed to John Cryer. He was applauding. So it was a little bit well received although I have to say when we kind of put stars later on in the night at some of the parties, they said it was just really weird, very, very awkward, but you know what? It seems like they kissed and made up.
I'm being told to toss it back to you -- Kyra. So, that's how it was.
PHILLIPS: Well, I think there'll be a lot of people wanting to know what he does next as well.
Kareen Wynter, appreciate it.
WYNTER: Yes, absolutely. Thanks Kyra.
PHILLIPS: Yes. Great wrap. You bet.
All right. We'll following lots of developments in the next hour of CNN NEWSROOM. Let's check in first with Brianna Keilar at the White House -- Brianna. BRIANNA KEILAR, CNN WHITE HOUSE CORRESPONDENT: Hi there Kyra. President Obama is set to unveil his recommendation for deficit reduction. We'll carry the event live next hour and we'll have an explainer at the top of the hour.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: And I'm Christine Romans in New York. Part of that deficit reduction includes the so- called Buffett tax. What would that be, if you're a millionaire you want to listen up. I'll have that at the top of the hour.
KATE BOLDUAN, CNN CONGRESSIONAL CORRESPONDENT: I'm Kate Bolduan on Capitol Hill, where we're getting early reaction from Congressional Republicans to the Buffett rule, as Christine mentioned. And the rest of the President's deficit reduction plan. Some Republicans calling it class warfare. We'll have more at the top of the hour -- Kyra.
PHILLIPS: All right. Ladies, thanks.
And we're about a half hour away from President Obama's speech in the Rose Garden. When he arrives, we'll bring it to you live.
(COMMERCIAL BREAK)
PHILLIPS: All right. Michael Vick returning to Atlanta. However, it didn't really go the way he had hoped -- Jeff Fischel.
JEFF FISCHEL, HLN SPORTS: Yes. It's a little bit of a surprising ending for Vick. The former Falcon quarterback leading the Eagles into the Georgia dome. His first time there as a starter since the dog-fighting scandal. On the sidelines before the game, Vick hugging Falcons owner, Arthur Blank. Now the $10 million man, of course, for the Eagles.
In the third quarter, back to pass, ouch. Helmet to helmet collision with one of his own lineman. Vick spitting blood, leaves the game. His coach Andy Reid said later he did have a concussion. The Falcons rally to win the game. Michael Turner scores the winning touchdown. 35-31 the final. Vick will undergo testing to see if he can play this next week.
Cowboys quarterback Tony Romo also got knocked down yesterday but he didn't stay down against the 49ers. Earlier in the game suffered two broken ribs on this hit. He came back into the game and Tony Romo was fantastic. He led the Cowboys to a fourth quarter comeback, forced overtime and then in OT, Romo, this long completion to Jesse Holly, it set up the game-winning field goal. Dallas wins in OT 27-24. What a comeback day for Romo.
Let's go to the golf course. 16-year-old Lexi Thompson has written her name in the record books. She is the youngest player ever to win an LPGA event. Took the Navistar classic by five strokes, no less. Getting a hug from her caddie, her dad.
The gallery was cheering. Dad told her, I'm going off to the side, because I'm going to cry. She got a check for $195,000. Not bad for a 16-year-old. She says she'll donate $20,000 of her winnings to the tournament's charity which is the Wounded Warriors Project. So, a great way to share some of the winnings as well. She did say the night before the tournament was over she had dinner with another team player and they talked about boys, not about the golf course.
PHILLIPS: She's 16. Come on. But she is a pretty remarkable player. I had my eyes on her, too. She's fun to watch.
FISCHEL: Yes. Fantastic. Yes.
PHILLIPS: Jeff. Thanks so much.
FISCHEL: Ok.
PHILLIPS: All right. That does it for us.
Top of the hour, Wolf Blitzer in as he'll preview the president's speech in about half an hour. Hi, Wolf.
