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House GOP Leaders Talk Fiscal Cliff; Three Dead In Mall Shooting Rampage; Boehner: Still Hopeful On "Fiscal Cliff" Deal; Tennis Player Does Serena Impression

Aired December 12, 2012 - 10:00   ET

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

(COMMERCIAL BREAK)

DON LEMON, CNN ANCHOR: Stories we're watching right now. Holiday shopping ends in panic when a gunman opens fire inside a crowded shopping center in Oregon, forcing hundreds to run for cover. We're getting new details about the gunman.

Satellite or missile test? A defiant move from North Korea as its rocket program takes another step forward.

Any moment now, House Speaker John Boehner expected to speak. A live look from Capitol Hill right now. This follows late night movement on fiscal cliff negotiations. We are standing by.

It was supposed to be funny. A tennis player mocking superstar Serena Williams, but many are calling it racist. Did it go too far?

The "NEWSROOM" starts right now.

Hello, everyone. I'm Don Lemon. Happening right now, we'll get you live to Washington in Capitol Hill. House Speaker John Boehner expected to speak right there from that podium at any moment.

He had a call with the president last night after Republicans sent a new proposal over to the White House to avoid the fiscal cliff. The House Speaker, let's listen.

(BEGIN LIVE FEED)

REP. JOHN BOEHNER (R-OH), SPEAKER OF THE HOUSE: I feel fine, I just sound a little foggy, that's all. As of today, the president's plan to avert the fiscal cliff still does not meet the two standards that I laid out the day after the election.

His plan does not fulfill his promise to bring a balanced approach to solving this problem. It's mainly tax hikes and his plan does not begin to solve our debt crisis. It actually increases spending. Our plan meets the standards.

It cuts spending and paves the way for real job growth in our country. In the five weeks since we signalled our willingness to forge an agreement with the president, he's never put forth a plan that meets these standards. And, frankly, that's why we don't have an agreement today. The longer the White House slow walks this discussion, the closer our economy gets to the fiscal cliff and the more American jobs are placed in jeopardy.

Rep. ERIC CANTOR (R-VA), MAJORITY LEADER: Good morning. The president has said on a daily basis that we should be passing a balanced plan. But what we hear from the president is continuing only discussion on one side of the ledger. It has always been about tax rates increases and nothing about spending.

And we insist and say, look, Mr. President, let's talk about a balanced plan, but where are your specifics on the spending cut? Even his own advisers say that any kind of agreement that we come to has to deal with the prime drivers of our deficit, which is the spending, and particularly, the health care entitlement programs.

So we ask the president to please sit down with us and be specific and let's get that balanced plan. You know, it's interesting that the Senate has passed a bill that is a bill calling for increased revenues of $850 billion. The president continues to say, support that bill, pass that bill.

Well, how is that the case when he continues to say we also need $1.4 trillion in additional new revenues? So there is an inconsistency here, and let's stop playing games. We want to be here for the American people, and we want to make sure that we get a balanced solution.

So that we can start focusing on the one thing that we seem to have forgotten, and that is it's about jobs and the economy. It's about getting people back to work, making sure their life works again and to finally get us back into the mode of a growing economy.

The president seems to be walking us ever so slowly towards the cliff. We've said we're committed to staying here. We're going to stay here right up until Christmas Eve throughout the time and period before the New Year, because we want to make sure that we resolve this in an acceptable way for the American people.

REP. CATHY MCMORRIS RODGERS (R-WA), HOUSE CONFERENCE CHAIRWOMAN: As the debate continues over the fiscal cliff, I'm reminded once again, you know, and I think it's important that we remember that Washington doesn't have a revenue problem, it has a spending problem.

And you look at the record debt that's been accumulated over the last four years. The projections are pretty startling over the next 10 years as the trillion-dollar deficits as far as the eye can see, a nearly doubling of our debt.

You know, two years ago, we had a baby girl born, and at that time, her share of the national debt was $45,000. And on the current track, by the time she gets in high school, her share of the national debt will be $100,000, $100,000 per child in this country.

America deserves better. Our children deserve better. And that's why we're not just after the quick fix. We're after a real fix. We want -- this is our moment to lay out that framework, to address tax reforms, to address the spending reforms that America --

(END LIVE FEED)

LEMON: And that is Cathy McMorris Rodgers, another Republican ranking member. House Speaker John Boehner spoke first and it was very important. Here's what he said: The president's plan does not fulfill what he calls a balanced approach to ending the fiscal cliff.

Tax hikes, increases, that's what he says this all amounts to for the president, increases in taxes, and he is not trying to reduce spending, and that's important to the Republicans. He said for five weeks, this is according to John Boehner, he's been reaching out to the president but the president has not given a serious proposal.

Then Eric Cantor echoing those statements when he spoke as well and again, and remember all of this as well. It has been said that if we do go over the fiscal cliff, many Americans in the polls show will blame Republicans.

So after these talks, after this phone call last night, this is all about messaging, trying to stem the tide of people who believe that Republicans are responsible for putting us over the fiscal cliff if that, indeed, does happen.

So this is about messaging. This is about posturing as well, getting the message across. Our Dana Bash is standing by and she will update us on that as well, what the president had to say and what the Republicans just said moments and take us behind the scenes. So we'll get to Dana in just a moment on Capitol Hill.

We're also following details in that deadly mall shooting just south of Portland, Oregon. Panicked shoppers throw up their arms and rushed to police after a gunman opens fire. Police now believe a rifle was the weapon used by the gunman who was in his early 20s.

This morning three people are confirmed dead and a fourth victim is described as fighting for her life. Police say the mass gunman killed himself as they closed in, making the motive for the killing spree all the more unclear right now.

Witnesses say he popped off at least 20 rounds seemingly choosing his victims at random. The shopping mall Santa was among the hundreds of people who heard the echo of rifle blasts.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: There weren't too many kids in the mall at the time, so that was good. I heard two shots, and then after that, I heard about 15, 16 more shots and decided that that was gunshots, so I hit the floor. My crew that was working with me must have left. Everybody left, and when I got up, there was nobody there but myself.

(END VIDEO CLIP) LEMON: You know, Dan, every time I talk to you, it's so odd to hear Santa talking like that, and it's so sad this holiday season to have this going on. You're outside the mall at the Clackamas Town Center now live.

We heard a little more from the undersheriff about the rifle they found, and also they're going to release the name of the shooter and the victims. What are you hearing?

DAN SIMON, CNN CORRESPONDENT: Well, that's right. We know that authorities did recover the rifle. They're not describing the make and model, as it were, but from talking to witnesses, it sounds like it was a high-powered rifle.

Obviously, he got off 20 rounds or so. As you said, there is going to be a news conference at 10:00 a.m. local time, three hours from now, where authorities are expected to release the name of the shooter as well as those who died in the shooting.

What we can tell you is that as we've been reporting all along, this happened yesterday afternoon about 3:30 in the afternoon, the shooter entered the Macy's store, which is on the second floor. He then sprinted towards the food court.

That's where the mall Santa was taking pictures with little children. And we actually spoke to a Macy's employee who was among the first people to actually see the shooter. Take a look.

(BEGIN VIDEO CLIP)

AUSTIN PATTY, WITNESS, MACY'S EMPLOYEE: I was like, my gosh. At that point, I was in such shock where I just kind of stood there, and as I stood there in shock, like time slowed down and everything, everything just got slow.

And after that, all I heard was, I am the shooter, and then shots rang out. Five, six shots, and by that time, I hit the floor and I just ran out and started telling everyone.

And anyone I saw, there is a shooting going on, don't go in there, pack your kids, your family and let's get out of here, you know. I don't know what could happen. It was scary.

(END VIDEO CLIP)

SIMON: Well, Don, whatever a shooting like this occurs, one thing you want to know is, what was the motive and who is this shooter? At this point, we don't have answers to those questions. Perhaps the authorities will shed some light on that a bit later on today. Back to you.

LEMON: Yes, absolutely. As a matter of fact, he said he would be able to do that at 10:00 a.m. Pacific Time. Thank you, Dan Simon. We're going to get back now to Washington where they're taking questions on that fiscal cliff. There is John Boehner. Listen.

(BEGIN LIVE FEED)

BOEHNER: -- if you look at our budget, we had no new revenue in our budget. If you look at the president's budget, he had $1.6 trillion worth of new revenue in his budget. We've been reasonable and responsible in our approach to this, and we're going to continue to do that. It's time for the president to do his part.

UNIDENTIFIED MALE: After hanging up with the president, are you less hopeful that you can bridge the difference and get a deal?

BOEHNER: Listen, I was born with the glass half full. I remain the most optimistic person in this town, but we've got some serious differences.

UNIDENTIFIED MALE: (INAUDIBLE).

BOEHNER: The supplemental has been sent up to the Hill. The relevant committees are doing their work on the supplemental, and when they're finished, we'll take a look at it.

DANA BASH, CNN SENIOR CONGRESSIONAL CORRESPONDENT: How do you think you went from cordial -- that's how you described the call yesterday at noon to deliberate or I mean, let's just call it what it is. It sounds like it was pretty tense.

BOEHNER: It's two different calls.

BASH: But how did you go from -- describe the process by which you went from cordial to tense? What got you so annoyed?

BOEHNER: Listen, there were some offers exchanged back and forth yesterday, and the president and I had a pretty frank conversation about just how far apart we are. Thanks, everybody.

(END LIVE FEED)

LEMON: That was John Boehner taking questions about the talks, the phone calls he's been having with the president. Dana Bash asking the question. I thought it was important, too, the question asked before Dana's.

They said, are you more hopeful after the phone call? It's obvious from what he said he is not hopeful after that phone call, and it looks like we are back to square one.

John Boehner, Eric Cantor, other leading Republican leaders are saying there is a no go here. The president has to put something else on the table. Of course, the president is saying that is a no go as well. We're at a standstill. It is a deadlock and we'll be right back.

(COMMERCIAL BREAK)

LEMON: OK, back to Capitol Hill now where our senior congressional correspondent Dana Bash joins us with more on what Speaker Boehner had to say and Eric Cantor. OK, Dana, you don't even have to read the tea leaves here. He said it. The president has not put anything on the table that they want. The president, of course, has been saying the same thing about the other side. We are at a deadlock here.

BASH: We don't seem to be moving very fast, very far, that's for sure. The Speaker -- it was very interesting that he described at least the atmosphere or the tone of the conversation that he had with the president.

It was pretty clear that it was not good, this conversation that the two of them had late yesterday. Very different from the way he described the conversation just the day before as cordial -- or two days before, I should say, as cordial and seemed to be much more productive.

So that's what he said in public. We're told from House Republicans coming out of this meeting he just had with the entire House Republican caucus that he expressed the same thing privately, that he is very frustrated.

He says that the president simply is not giving not only on spending cuts but still, as he said, wants to have this deal, which includes $1.4 trillion in new revenue. That means the president came down from 1.6 to 1.4. He came down a little bit, but certainly not enough as far as Republicans are concerned.

Because the way Republicans, and actually both sides, describe this, is it's almost like there are two dials. The more you dial revenue increases down, the more you have to dial spending cuts up to get to the overall debt reduction number that both sides really want to get to.

But we don't seem to be very far right now on that, and the Speaker told his people that they should not make plans for the holidays.

LEMON: Yes, I heard that, and I heard Eric Cantor say they'll stay there through Christmas Eve if they have to and up until New Year's. Let's get this straight. We're hearing from the Republicans now and we'll hear from the president and Democrats later.

But this is all really to put some pressure on the president to give a little because Republicans at the full show, if we do go over the fiscal cliff, most Americans will blame Republicans for it.

BASH: No question about it, and that's what we've been seeing over and over since one week ago today in this room, the president doing virtually the same thing. He did it on the House floor yesterday. He did it in a press conference Friday.

It is all about public pressure. What we are seeing since yesterday a shift in the message because they realize that they have virtually no leverage on the tax rate issue, that they're shifting over, at least rhetorically, to the spending issue to make sure they really want spending to come down.

Because they think that's something the American public agrees with as well, that Washington simply spends too much. What we really need here is the two of them to come together and find that perfect balance in those dials we talked about.

You know, we just have to hope that things calm down between the president and his Speaker after what was clearly a very tense conversation last night, and that they can try to move forward.

LEMON: So American people, happy Hanukkah, Merry Christmas, Happy Kwanza, whatever. This is what you'll be watching for your holiday. Not a nice present if we do go over the cliff. Dana, you're the best. Thank you very much.

Still ahead here on CNN, it was supposed to be funny. A tennis player mocking superstar Serena Williams, but many are calling it racist. Did it go too far?

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LEMON: This right here. This is the water cooler moment of the day and probably the week for some time now. Some people accusing a women's pro tennis player of racism.

Caroline Wozniacki in Brazil, she stuffs her bra and her backside with towels then she struts her stuff and later admitted this was an impersonation of her friend, Serena Williams. There you go. I want to make sure you see it.

There is Carlos Diaz, though, from Atlanta. So Carlos, there is a lot of controversy over this. Here's the thing. They're friends, right? Why are people jumping to -- it very well could be racism.

I don't know what's in her head. Why do people automatically jump to that because a black woman is not the only person with big boobs and a big butt, Kim Kardashian, J-Lo, and they're not black women so why is this racism instead of something that maybe silly or could be a joke between friends?

CARLOS DIAZ, HLN SPORTS CORRESPONDENT: I don't want to judge the people who are judging this, but I will say that if your argument is she's making fun of African-American women in general, Serena's own sister Venus is not built that way.

You know, basically Caroline Wozniacki is having fun with her friend. I mean, her and Serena Williams are friends. It's been reported and after the match, she was asked about it and she had no problem saying, yes, I was doing an impersonation of Serena.

And a lot of times, tennis players, we've seen this in the past. Often we'll have male tennis players imitating other male tennis players with their service, how they serve, how they do something, you know, on the court.

Well, guess what? People can imitate Serena's serve because no one could serve the ball 130 miles an hour on the women's side like Serena, you know, so what you do is you just do -- you do it in this way. And in my honest opinion, I don't see it as being racist because you're not making fun of an entire race, you're having fun with a friend, with one in particular person who happens to be an African- American.

LEMON: Yes, people -- that is the first thing people jump to which is just so odd to me. We're so touchy about that. And listen, the power in her legs, while she has that serve and she can run, that shows in her buttocks that she is very muscular and she has power in that, so that's not a bad thing, people. Go ahead.

DIAZ: And also, too, you look at Serena's outfits in the past, she embraces the fact that she has a different kind of body than most tennis players do. We all remember the first time we saw that cat suit she wore in the U.S. open.

The entire newsroom I was in stopped when she came out in that and that kind of thing. I was looking at her Twitter page to see if she tweeted any responses to this, which she has not. But the picture on her Twitter page is her in tights and she's kind of sitting over a little, so she's not shying away from the fact that she has a different body than other tennis players. And like you said, that power that she has helps her be the amazing tennis player that she is.

LEMON: Yes, the upper body and the lower body, and listen, I don't know what it is. Maybe it was just in bad taste that people thought maybe Serena wouldn't --

DIAZ: Serena was in Brazil -- this happened in Brazil. Serena was in Brazil and she did tweet out earlier, "Are there any Brazilian bikinis to fit me?" So she is making light of the fact she has a different body than other tennis players might have.

It's one of those things where it's a very touchy subject to say, I'm looking like this, I'm looking like Serena and she's an African- American, and you have people on line now jumping on the bandwagon and saying, that's being racist.

LEMON: It just sort of snowballs one after another and you believe it if it's tweeted or said enough. I am willing to bet there are thousands and thousands of women every day who go into the cosmetic surgeon and he says what kind of a rear do you want, and they say Serena.

DIAZ: The words, but she's got a big butt have never been uttered by a man. It's always and she's got a big butt.

LEMON: Serena got it naturally. Thank you very much. Appreciate it, sir.

The debate heats up over Ambassador Susan Rice and her possible nomination for secretary of state. Now some lawmakers are bringing up her connection to African leaders.

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