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Early Start with John Berman and Zoraida Sambolin

U.S. Capitol On Alert Again After DHS Warns of Possible Violence; Biden Strikes Compromise With Moderate Dems On Stimulus Checks; Pope Francis Prepares to Make First Papal Visit to Iraq; U.K. Says Biggest Companies Must Pay More Tax. Aired 5-5:30a ET

Aired March 04, 2021 - 05:00   ET

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

[05:00:23]

CHRISTINE ROMANS, CNN ANCHOR: A big lie has big consequences. Security stepped up. Lawmakers staying home after a new threat of violence on the U.S. Capitol.

LAURA JARRETT, CNN ANCHOR: Breaking overnight, the House advancing major legislation to protect voting rights, but is it dead on arrival in the Senate?

ROMANS: And the president compromises on his American Rescue Plan but Republicans do all they can to stall the popular program.

Welcome to our viewers in the United States and around the world. This is EARLY START. I'm Christine Romans.

JARRETT: Good morning, Christine.

I'm Laura Jarrett. It's Thursday, March 4th. It's 5:00 a.m. here in New York.

And nearly two months after the insurrection, Washington again on high alert. U.S. Capitol Police warning of potential new violence, saying, quote: We have obtained intelligence that shows a possible plot to breach the Capitol by an identified militia group on Thursday, March 4th. So, why March 4th?

Well, QAnon conspiracy theorists believe former President Trump will somehow magically be inaugurated today because presidents from Washington to FDR were inaugurated on March 4th, or the days surrounding it.

But to be clear, they're wrong. That's not happening.

ROMANS: Yeah, because it's spreading on social media does not mean it's real, if it's on the Internet.

Still, the warning led House leaders to scrap a session that had been set for today.

(BEGIN VIDEO CLIP) REP. JIM HIMES (D-CT): And it's better to have us, you know, scattering to the four winds as opposed to all concentrated in one building. Unless there is a very substantial well-trained force on their way to Washington, D.C., they are going to meet security like they never imagined before.

(END VIDEO CLIP)

ROMANS: Capitol Police have ramped up security after we learned for the first time Wednesday that it took more than 3 hours for the Pentagon to send in National Guard troop to stop the violence on January 6th.

Capitol Police say they are ready with significant security upgrades including new fencing and more officers.

Let's get more now from CNN's Jessica Schneider. She's in Washington.

(BEGIN VIDEOTAPE)

JESSICA SCHNEIDER, CNN JUSTICE CORRESPONDENT: Christine and Laura, there are real concerns about security at the Capitol today especially since we're learning more about the joint bulletin issued by the FBI and DHS. It warns that violent extremists want to take control of the Capitol and remove Democratic lawmakers.

This all comes because March 4th marks the date that conspiracy theorists believe Donald Trump will retake his position as president. That belief, of course, is false. But intelligence officials note there's been increased chatter online among extremists as we lead up to the date, notably among the members of the 3 percenters extremist group.

Law enforcement does believe this is all online talk and not necessarily an indication that anyone is coming to Washington to act on it, but security at the Capitol has been increased including with additional officers that will be on Capitol Hill today. There are also concerns about threats against President Biden still to be scheduled joint address to Congress so Washington once again on edge today -- guys.

(END VIDEOTAPE)

JARRETT: Jessica, thank you for that.

Democrats push a sweeping voting rights bill through the House against fierce Republican opposition. The measure is aimed at countering hundreds of Republican-led bills that have tried to limit access to the ballot box following President Trump's loss. Now, this new bill would roll back state voter ID restrictions, expand mail-in voting. It would also put congressional redistricting in the hands of independent state commissions but right now, the bill is considered a long shot to win the 60 votes it would need to pass.

ROMANS: With millions of Americans in need, President Biden touting his American Rescue Plan. (BEGIN VIDEO CLIP)

JOSEPH R. BIDEN, PRESIDENT OF THE UNITED STATES: This is a case where every single piece of the bill you passed addresses a genuine desperate need for the American people. Each piece isn't just defensible, it is urgent and overwhelmingly supported by the people. It's good policy and it's good politics.

(END VIDEO CLIP)

ROMANS: Mr. Biden says everyone is making small compromises so he is willing to do the same.

CNN's Daniella Diaz live on Capitol Hill.

Daniella, where did the president give some ground here?

DANIELLA DIAZ, CNN CONGRESSIONAL REPORTER: Christine, Senate Democrats are down to the wire. They are working to finalize the final details of this massive $1.9 trillion COVID-19 relief package.

And as you mentioned, there are signs of compromise between Senate Democrats and the White House, namely probably everyone's most important topic that everyone cares about, these $1400 stimulus checks.

[05:05:02]

So let me talk to you a little bit about what the agreement was here. So, the phase-out for $1,400 stimulus checks begins at $75,000 for single filers and will end at $80,000. And the phase-out begins at $150,000 for couples and now ends at $160,000.

This was an agreement between moderate Democrats and the White House to have faster phase-out numbers for these $1,400 stimulus checks. This was not the only compromise between the White House and Senate Democrats. They agreed to keep the number to $1400 a week for unemployment benefits for Americans.

There was back and forth about reducing it and keeping it at $300 a week to have it last longer, but now, it's $400 a week through August. The clock is ticking. The White House is putting pressure on the Senate to pass this legislation, to put it on Biden's desk before March 14th when millions of Americans will lose their unemployment benefits.

So because of that, we are expecting a late night here in the Senate as they vote on these amendments and drag out this process -- Republicans are going to try to drag out this process tonight because they don't agree with this legislation.

ROMANS: All right, Daniella Diaz. Thank you so much. Nice to see you this morning.

Laura? JARRETT: All right. Vaccination rates are on the rise. For the first

time in the United States, the seven-day daily average of injections is over 2 million. That means one in six Americans have received at least one dose. With a decision in states like Texas to scrap health restrictions, it's threatening to up end all of this progress.

(BEGIN VIDEO CLIP)

BIDEN: We are on the cusp of being able to fundamentally change the nature of this disease and the last thing, the last thing we need is a Neanderthal thinking that in the meantime, everything is fine, take off your mask, forget it.

DR. ANTHONY FAUCI, DIRECTOR, NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES: I don't know why they're doing it but it certainly is from a public health standpoint is ill-advised. We've been through this scene before months and months ago when we tried to open up the country and open up the economy when certain states did not abide by the guidelines. It's just inexplicable why you would want to pull back now.

(END VIDEO CLIP)

JARRETT: Texas Governor Greg Abbott apparently thinks he has the answer to his state's high infection rate. He's claiming without any evidence that undocumented immigrants are crossing the border and exposing everyone.

ROMANS: You know what else exposes Texans to COVID? Well, no masks in crowded places. Twenty-nine million people live in the state, about 10 percent of the U.S. population. Folks on the ground there and in Mississippi, which also relaxed restrictions, well, they have mixed reactions to the announcements.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I think it's a little too soon now. Everything is kind of still opening up but I think it's still safe to wear the masks. At least until everyone has a vaccine.

UNIDENTIFIED MALE: I think it should be effective yesterday, a month ago and I think it's awesome he's lifting it. Hopefully we never have to do this again.

UNIDENTIFIED MALE: I think it's a bad decision and we need to keep wearing the mask, you know, for everybody's safety.

UNIDENTIFIED FEMALE: I really do think that we are as a state being too lax too quickly. I pray that I'm wrong.

(END VIDEO CLIP)

ROMANS: CDC guidance is expected soon on how fully vaccinated Americans should interact safely with others.

Laura, it's interesting here. The big companies that operate in Texas, they are keeping their mask mandate. They are keeping their social distancing guidelines. They have a system that works. They cannot expose their employees and customers.

So, if you live in one of those states, oh, great, Governor Abbott says I don't have to wear a mask, wrong. If you go shopping at Target, you do. If you work at the GM or Toyota, you do.

JARRETT: Now the onus is on the workers to enforce these rules.

ROMANS: Yes, unfair. Unfair.

JARRETT: It's really a bad situation.

All right. The Justice Department was asked to consider criminal charges against a Trump cabinet secretary in the waning days of the administration. A watchdog report from the Transportation Department says Elaine Chao misused her office, including using staff, to help family members who run a shipping business with extensive ties to China. Chao is married, of course, to Senate Republican leader Mitch McConnell. The DOJ and the U.S. Attorney's Office in Washington, D.C. declined to pursue that case.

ROMANS: All right. Pope Francis heads to a war zone.

(COMMERCIAL BREAK)

[05:13:33]

ROMANS: Welcome back.

Pope Francis is preparing to make the first ever papal visit to Iraq. The trip comes despite concerns about new coronavirus outbreaks and security threats posed by Iran-backed Shiite militias.

CNN's Ben Wedeman is live in Baghdad.

A symbolic visit here.

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, of course, this is a visit that we have heard from many within the Vatican, including the former pope, Pope Emeritus Benedict XVI, that it is a dangerous trip to make for Pope Francis who, of course, is 84 years old, A, because of coronavirus where in Iraq, for instance, we've seen a spike in the last month in the number of daily cases reported.

In addition to this spate of tit for tat attacks between the Iranian backed militias and the United States over the last more than a month. Nonetheless, the pope has made it clear he is determined to visit Iraq. He has noted that John Paul II in '99 or 2000 was hoping to come here but was unable to come.

And, of course, the Christian community has really suffered over the last 20 years. Back in 2003 at the time of the U.S.-led invasion of Iraq, the number of Christians here was about a million and a half.

[05:15:00] Since then, it has fallen to just 300,000. So the pope is coming here, first of all, to express solidarity and support for the dwindling Christian community, and in addition to that, he is going to, for instance, be meeting the Grand Ayatollah Ali Al-Sistani as one of the senior clerics of the Shia branch of Islam in an attempt to build bridges of brotherhood with the Muslim world as well -- Christine.

ROMANS: All right. Ben Wedeman for us in Baghdad this morning -- thanks, Ben.

Laura?

JARRETT: All right. Coming up, small business owners left in limbo as they desperately wait for a third round of loans.

(COMMERCIAL BREAK)

[05:20:09]

ROMANS: To business now, it may seem counterintuitive but worker paychecks grew during the pandemic for a grim reason. Millions of low income jobs vanished and that has pushed the average pay higher. From February 20th and January 2021, the average hourly wage for private sector employees rose 5.1 percent. For comparison, wages grew just 81 cents back in 2019.

Lower paid workers in leisure and hospitality have lost the most jobs during the pandemic. These low income jobs just gone. The bottom quarter of Americans earners lost almost 7.9 million jobs. The highest paid workers actually gained nearly a million jobs.

Now, if lower paying jobs are added back into the recovery, you'll see average earnings likely slip again. It's still up to Washington to support millions of people still out of work because of the pandemic.

JARRETT: Well, speaking of jobs, billions of dollars in the president's American rescue plan are earmarked for small business relief. And a year into the pandemic, many small businesses, well, they're struggling to hang on.

CNN's Vanessa Yurkevich reports for us now.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Getting there.

VANESSA YURKEVICH, CNN BUSINESS AND POLITICS CORRESPONDENT (voice- over): Barbara Thigpen's business is in limbo. The fate of her hair salon hinging on a Paycheck Protection Program loan. While she waits, her son's college fund is keeping the lights on.

BARBARA THIGPEN, OWNER, JAMES ROSEN SALON: There was definitely a moment where I was trying to decide if it had to be my child's college fund or the business and then I've soon realized without the business being here, there would be no way to replace his college fund. YURKEVICH: Which has drained 50 percent and her PPP application hit a

roadblock. With six employees, she's eligible for the current two-week application period, the Biden administration set it aside for small businesses with less than 20 employees. But as the sole proprietor, she had been waiting more than a week on new application rules the Small Business Administration just announced in order to move her loan forward.

THIGPEN: What I can't actually understand is that the government would make new rules and not understand that this two-week window and these new rules would cause a conflict.

YURKEVICH: Until then she waits and so does Diane Bondareff. She's a one-woman photography company with a 25-year career in New York City.

DIANE BONDAREFF, OWNER, DIANE BONDAREFF PHOTOGRAPHY: My photography business definitely relies on people gathering.

YURKEVICH: Without that, she's down 88 percent in revenue. She's been waiting over a month for news of her PPP loan.

BONDAREFF: These are the things that keep me up at 3:00 in the morning wondering what I'm going to do, and if I don't have the funds to stay here, I may -- you know, I may have to leave.

YURKEVICH: The SBA which processes PPP loans says delays in funding are due to additional compliance checks introduced by the Biden administration. For some, it's too late.

Fortuna Sung and Matthew Garrison owned ShapeShifter Lab, a jazz club in Brooklyn. They were ineligible for a PPP loan, but could access a new shutter venue operator grant for live venue spaces.

It was introduced in the December stimulus bill, the SBA has yet to open applications.

MATTHEW GARRISON, CO-OWNER, SHAPESHIFTER LAB: We're down to the wire. We knew we would be down to the wire and now it's here and the funding has not come through.

YURKEVICH: Without it, they will close for good at the end of the month, joining hundreds of other independent venues who have met that same fate.

FORTUNA SUNG, CO-OWNER, SHAPESHIFTER LAB: Having the venue close, I would be very upset. It's basically our lifetime savings that we put into it and everything evaporates.

YURKEVICH: Vanessa Yurkevich, CNN, New York.

(END VIDEOTAPE)

JARRETT: Vanessa, thank you so much for that piece.

The U.K. is mapping out its own financial rebound from the pandemic. The plan calls for big companies to pay a bigger share in taxes. CNN's Scott McLean is live in London with more.

Scott, how is all of this going to work?

SCOTT MCLEAN, CNN INTERNATIONAL CORRESPONDENT: Hey, Laura.

Well, first off, because of the quick vaccine rollout, the economic forecast for the U.K. is actually looking better than initially expected. But this country's COVID bill is about to get even bigger, about $500 billion by the time it's all over. The government has not borrowed on this kind of a scale since the world wars.

Almost 5 million people are reliant on the government to subsidize their wages. And so, yesterday, the British chancellor, Rishi Sunak, announced that the spending spree will continue, extending government wage subsidies, tax breaks, tax holidays and business grants well into the fall. That is the most pessimistic time line to see all of the lockdown restrictions in place fully lifted.

[05:25:01]

The chancellor also made clear that this level of borrowing is simply unsustainable, beyond unsustainable. And so, it will take decades to pay it back. That needs to start soon.

So, there is a tax hike coming but first, a massive tax break for companies who will now be allowed to deduct more than 100 percent of their investments in the U.K. from their taxable income over the next two years. Only then in 2023 will they actually start to see those higher tax rates for the largest companies, going from 19 to 25 percent. That is the first corporate tax hike in this country since the 1970s.

Personal income tax will not go up, neither will taxes on fuel or booze. The chancellor said that given the level of support that businesses have gotten, it makes sense or it's reasonable for the largest and most profitable companies to pay more, Laura.

JARRETT: All right. Scott McLean in London for us this morning -- thank you.

ROMANS: All right. The U.S. Capitol locking down again after an urgent new warning of a possible militia plot to breach Congress.

(COMMERCIAL BREAK)