Return to Transcripts main page

CNN Newsroom

Cracking Down on Offshore Tax Havens; Inside an Isolation Ward; Making a Career Change; Quarantined in Hong Kong; Treasury Secretary Geithner, President Obama Announce New Corporate Tax Codes; Dallas Cowboys Canopy Collapse

Aired May 04, 2009 - 10:59   ET

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

MELISSA LONG, CNN ANCHOR: It is Monday, May 4th. And here are some of the top stories in the CNN NEWSROOM today.

President Obama live at this hour, cracking down on offshore tax havens. He will announce a plan to close loopholes for U.S. companies that are operating overseas.

The number of swine flu cases worldwide approaching 1,000. Now Mexico says the worst is over there, but U.S. health experts say you can't breathe easier just yet.

Good morning once again. I'm Melissa Long, in today for Tony Harris.

And you are in the CNN NEWSROOM.

Closing the tax loopholes and cracking down on overseas tax shelters for the wealthy, two key parts of a plan to be unveiled by President Obama in just a matter of minutes. We're going to bring you the president's remarks live from the White House.

Now, his plan already coming under fire. Business leaders view it as a tax hike.

Our correspondents are going to walk us through the president's plan. We have White House Correspondent Suzanne Malveaux. She'll be explaining the nuts and bolts for you. Christine Romans is going to tell us what it means for businesses. And Susan Lisovicz has the business community's reaction.

Let's first start with Suzanne.

And get us through the basic nuggets of this reform.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, one of the things it does, Melissa, is that it really goes after these tax havens. What was interesting is, if you note, the Government Accountability Office says about 83 out of the top 100 publicly traded companies have these tax havens overseas. And what the president wants to do is he wants to close a tax loophole, if you will, in the law that basically allows these companies, when they go ahead and fill out their tax forms, they say their subsidiaries overseas are actually branches of their company. When they do that, when they actually check that box, what it does is it makes those subsidiaries disappear and they don't have to pay U.S. taxes that would actually accompany that. So they are avoiding paying U.S. taxes.

This is completely legal as the law exists. So that is what President Obama is going to be talking about, some of the legal ways that these companies avoid paying U.S. taxes.

The other thing he's going to do, he's going to talk about individuals who are hiding their money, if you will, in some of these tax havens overseas, these accounts. That that is something that they're also going to crack down on. And we're talking about 800 IRS employees that are going to be looking at ways to enforce this. And the government is going to acknowledge, the president's going to make the case that he believes this is going to bring in $210 billion over 10 years.

The reason they're doing this, Melissa? They say this is hard economic times, a recession, that this economic stimulus package is just one part of it. The other part of it is trying to recuperate the billions of dollars they argue that U.S. taxpayers are losing out with these businesses. A lot of opposition that we've already seen from companies who are lobbying members of Congress, saying, look, if it's bad for business, it's going to be bad for the American people -- Melissa.

LONG: Again, completely legal. You mentioned those letters, some 200 of them. What are the details of those letters?

MALVEAUX: Well, essentially, they're telling members of Congress that, you know, this is not going to help them out at all. I mean, they're talking about creating jobs at home by setting up better conditions for companies who keep their employers home, keep their branches here in the United States. But they say it's going to cost, it's going to increase the cost for them to do business, and if you increase the cost of doing business, then it means that cost is going to be passed down to the consumer.

That's the case they're making. And if you take a look at that GAO report, you're talking about a lot of companies -- 83 out of 100 of those top-traded companies have those tax havens overseas. And so there is a lot of opposition to this.

LONG: From Suzanne at White House, let's go to New York and Christine Romans.

Of course the big businesses that will be pushing back, Christine, this shouldn't come as a surprise. This was a big topic of debate on the campaign trail.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: It was. And on the campaign trail, the president promised that he would eliminate tax loopholes for company that he is said were shipping American jobs overseas or creating American jobs overseas. The idea here, that if a company checks that box and can keep its profits in a foreign locale, it will reinvest in that foreign locale if it doesn't have to pay taxes on them.

But the companies are saying, and the U.S. Chamber of Commerce coming out and saying, no. On the contrary, it's going to raise the cost of doing business for them and, in fact, it's going to hurt their global competitiveness because other countries don't have this kind of treatment for their companies. This would hamper the global competitiveness of the U.S. companies in (ph) key growth in the U.S. economy, and result in the loss of jobs at home.

So what you're going to hear, Melissa, is you're going to hear the White House setting up an argument for what sounds like a very reasonable closing of some loopholes for companies and closing of some egregious tax shelters for wealthy individuals. And then you're going to hear corporate America come out and give what sounds like an equally reasonable argument against this at this particular time. They say it's simply raising their taxes, essentially.

LONG: Let's go to Susan. She is also in New York just like Christine.

And I want you to give us even a better view of how corporate America will be responding and some of the companies that will be fighting this potential reform.

SUSAN LISOVICZ, CNN BUSINESS CORRESPONDENT: Well, it's a very predictable response, as Suzanne and Christine know. Companies are fighting back ferociously, because something that is legal is going to be, perhaps, taken away from them. And you have to consider something here, Melissa -- that growth for many, many U.S. companies come from overseas.

Say if you're Coca-Cola or your Kellogg's, you make cereal or soda, you have saturated the U.S. market. Where you really want to go is overseas -- South America, Asia, the Middle East, parts of Africa. That's where your growth is coming from, so that's why they're fighting this so hard.

And that letter that Suzanne and Christine were talking about from the U.S. Chamber of Commerce has 200 companies, companies that will really be hit . Coca-Cola, DuPont, American Express, Caterpillar, among the companies that are on there.

They say that, among other things, that they're getting taxed twice, that they want to level the playing field, that they're already subject to two levels of tax, and many of their foreign competitors are only subject to one level of tax. So they're going to fight back hard.

Where it ends up, of course, we don't know. But they're fighting. They've already sent letters to Congress.

LONG: Susan, Christine, Suzanne -- ladies, thanks so much for your terrific perspective.

We're going to be waiting for President Obama to step to the microphone in the grand foyer of the White House. He'll be there, along with the Treasury secretary, Timothy Geithner. As soon as he steps to the microphone, you will hear from him live here on the CNN in the NEWSROOM.

We're going to focus on some other news right now, and swine flu. The World Health Organization, the WHO, is holding a news conference, in fact, right now on the H1N1 flu outbreak. Of course we're monitoring it for you.

And there are also indications today that the outbreak could be easing in Mexico. The health secretary from Mexico says most businesses that have been closed for five days and can reopen on Wednesday.

We want to get you the latest flu numbers from the World Health Organization.

There are 985 confirmed cases worldwide. The most in Mexico City, with 590 cases, although Mexico's health minister puts that number even higher.

There have been 26 deaths, at least 25 in Mexico, one in Texas. That was a Mexican toddler in the U.S. to visit relatives. Now, in the U.S., there are 226 confirmed cases in at least 30 states.

The most cases in the U.S., in the state of New York. One private prep school was the epicenter of the outbreak there. St. Francis in Queens had 45 of the 63 confirmed cases in the state of New York. The students got sick after a trip to Mexico.

Now, the school has been scrubbed and sanitized. Students are back in class this morning.

(BEGIN VIDEO CLIP)

TRISTAN INCE, SOPHOMORE, ST. FRANCIS: The school part was fun at first until everybody started getting sick. And then it became a major concern.

JULISSA JOHN, SOPHOMORE, ST. FRANCIS: Well, everybody's going to be fine now, because if you're sick, they just advise you to stay home. So I think everything will be OK today.

(END VIDEO CLIP)

LONG: Mayor Michael Bloomberg visited the school and thanked all the kids for being patient while their school had been sanitized.

Now, back in Mexico, officials have lowered the health alert, but doctors are still taking every precaution.

In this CNN exclusive, Karl Penhaul takes us inside a hospital in Mexico City.

(BEGIN VIDEOTAPE)

KARL PENHAUL, CNN CORRESPONDENT (voice-over): Step into an isolation ward. This is the front line in Mexico's fight against the killer virus. Medics, shrouded in biohazard suits and goggles, are moving fast to halt the spread of the H1N1 strain.

DR. MANUEL VELASCO, MEXICO CITY NAVAL HOSPITAL (through translator): With this protection, the risk of infection is minimal. It allows us to avoid direct contact with the patient.

PENHAUL: Doctors here at Mexico City's naval hospital are allowing us a rare visit behind the glass containment doors. But before we enter, we, too, must don protective gear to stop us getting infected with the swine flu virus.

(on camera): The first day we saw it, it all looked pretty scary, but now I kind of understand it. Obviously the mask to keep any virus trying to get in onto the damp tissues, your mouth, into your nose. The goggles, the same thing, to stop any of the virus getting into the wet parts of your eyes, because we're told that that way you can get infected as well.

(voice-over): Navy doctor Manuel Velasco heads to emergency admissions. Patients are arriving with symptoms which need to be examined urgently in case there are early signs of swine flu.

Five-year-old Leo Amador (ph) has come in with a sore throat. His mother says the whole family is panicking and they're frightened, so they've all come for a checkup. Leo (ph) is later given the all- clear for the virus.

Meanwhile, 12-year-old Patricia Arenas (ph) is diagnosed with common flu, not the new mutant virus. "I'll take the medicine to get better," she tells me.

In another cubicle, doctors do a lung x-ray to try to pinpoint the cause of this woman's breathing problems. Results come back.

VELASCO (through translator): There's nothing that makes us suspect there's any sign of swine flu. That's good news for her.

PENHAUL: Since Wednesday, Dr. Velasco says staff have examined more than 2,000 patients. So far, he says, none of the results from the naval hospital has tested positive for H1N1.

(through translator): That may mean the virus is stabilizing and then could be totally controlled. But we have to wait a bit to be sure.

PENHAUL: Mom of two, Lorena Balderas, began feeling sick this morning. After a checkup, doctors decide to keep her in for observation to see how her symptoms progress. "I've got a headache, chills in my body, fever and a cough since this morning," she says.

Mexican health officials say the virus may finally be in retreat, but experts are still hunting vital clue clues.

VELASCO (through translator): We've seen this virus tends to affect women more than men, but we cannot say right now why that is. PENHAUL: Scientists must also answer another key question about the pandemic: Why Mexico?

Karl Penhaul, CNN, Mexico City.

(END VIDEOTAPE)

LONG: Wild, wet weather causing all kinds of problems and destruction across the South. We're following that story for you coming up.

(COMMERCIAL BREAK)

LONG: Good morning once again. A live picture of the grand foyer of the White House. A lovely view.

We're waiting for President Obama to step to the microphone, along with the Treasury secretary, Timothy Geithner. Today we'll be learning more about plans to reform the nation's international tax code, the goal to close loopholes for overseas tax havens, and end tax incentives for the companies that rely on creating jobs overseas to keep jobs in the United States.

We're going to hear more from President Obama momentarily. As soon as he steps to the microphone, we'll bring it to you live.

Jobs have been disappearing left and right. Is now really the time to make a career change?

Gerri Willis, our CNN personal finance editor, joining us live from New York.

And Gerri, what's your view? Is now the right time? A lot of people might be apprehensive about trying to make the change right now.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, that's right, Melissa. Good morning. Good to see you.

Look, even though many companies are in hiring freezes right now, laying folks off, the recession is a good time to focus on your career goals so that when the company does rebound, you can be ready to apply. The first thing you need to do is self-assess.

Even if you want a new career, you might not be sure where you want to go. Look, the Web is full of great Web sites that can help you assess your personal skill sets to help you find the best job for you. Online, OneNetCenter.org and CareerOneStop.org, they both offer free online self-assessment tests and up-to-date employment information on a range of industries. CareerVoyages.gov is a great government-run Web site with tons of info about sectors that are growing, not contracting.

Now, the truth is, you never know what a job is going to be like hour to hour until you've actually seen it up close. Go to CareerVoyages.gov to find videos of people working in specific vocations. You can watch bakers, geologists, even fashion designers doing their thing. And look for volunteer opportunities, too, that you might be able to fit into your regular schedule.

Those who are willing to pay for a career test drive, one good thing, vocationvacations.com. It's a service that pairs job seekers with established professionals.

I've got to tell you, Melissa, it's pretty pricey. If you want to shadow a TV producer for just two days, it'll set you back $1,500 on that site. But it's an interesting idea.

LONG: That is steep. You know, usually when you're in college, you have the opportunity through an internship to learn if you want to go into that type of career, but I guess that's an interesting option if you do have some cash laying around and want to find out more about an industry.

You know, one of the other things is, once you think you've found your niche, your new niche, you might consider going back to school. Of course, if you want to take on the student loans and you've dealt with that, would you encourage people to go back to get further education?

WILLIS: Well, you can (ph) go back to school without taking four years to do it. To make the most of this recession, you've got to develop those skills though that future employers will want.

Here are options to the four years of college.

Try to use your current position as a launching pad. Many employers offer training opportunities. Maybe you can get skills there that would be transferable to another job down the road. Look at class offerings online and at local community colleges which often tailor programs to what local industries are looking for in job candidates.

And, of course, if you have any questions, send them to me at gerri@cnn.com. We love hearing from you. We answer those questions right here every Friday.

LONG: Sound advice. Thanks so much. Always appreciate your expertise.

WILLIS: My pleasure.

LONG: Also, the results of the banking industry's stress tests, they're now being pushed back from tomorrow until Thursday. CNNMoney.com, you can rely on us to bring you up to speed on how these tests will affect your budget and affect your business. Go to CNNMoney.com.

Really wicked weather in the South over the weekend. It's causing all kinds of problems and destruction across the South.

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

LONG: Good morning once again.

Swine flu spreading further around the world, even as Mexico is hinting that the H1N1 virus may be, in fact, in retreat. Mexican officials have just lowered the health alert level. They're now planning to allow businesses to reopen on Wednesday. Schools, however, will remain closed until inspections are complete.

At least 26 people have died of swine flu, all of them Mexican, including a toddler who died in the U.S., in Texas. Mexico's health minister is reporting 727 confirmed cases of the virus in the country, with many more expected cases.

Now, the WHO, the World Health Organization, has just raised its official number of confirmed swine flu cases. It now reports 1,025 cases in 20 countries. That includes 226 infections in the U.S. The virus has spread to 30 states.

Hard to keep track of it all. The more pressing question, of course, for so many of you is, can you breathe easier knowing now that the virus appears to be stabilizing in Mexico?

Senior Medical Correspondent Elizabeth Cohen joins us now to help us understand.

Because there's so many facets to this. And, of course, the numbers are constantly changing.

ELIZABETH COHEN, CNN SR. MEDICAL CORRESPONDENT: That's right, the numbers are constantly changing. So you sort of have to look at it big picture.

And what we're hearing out of Mexico right now is that they believe that the outbreak there has already peaked. In other words, that their numbers will be going down. They believe that it peaked somewhere around April 25th to 28th.

Now, in this country, they don't believe that they have seen a peak yet. And the reason for that, they said that we think we're on the upswing. And the reason for that is, is that we're kind of basically behind where Mexico is.

Everything started out in Mexico. They are ahead of us, so to speak. So our peak would theoretically be in the future, then.

LONG: OK. It seems every day you find out about another case or another suspected case. So is this virus spreading quickly or slowly?

COHEN: You know, again, if you look at it big picture, here's sort of what it looks like. Obviously, it's spreading relatively quickly in that it's gone from Mexico to the United States and is now in various countries basically all over the world at this point. However, it is important to note that it's not spreading like wildfire. That's what many experts have told me. You are not seeing huge numbers of people getting it in any one community outside of Mexico.

So, for example, the nightmare scenario is that someone with a terrible new virus like this one gets on an airplane and doesn't realize they're infectious. And voila, that plane lands and you have a plane full of sick people. That is not happening, and I think it's important to say.

It's spreading from person to person to person. I'm hearing that from public health experts. But it's spreading to huge groups of people all at once.

LONG: I'm also just interested in personal perspective. As a medical expert, as a mom, as someone who travels often for work, are you doing anything differently?

COHEN: No. I'm doing all the things I would normally do during flu season. I wash my hands, I wash my children's hands often.

Several people have asked me, "Would you give on an airplane right now?" And I say, "Yes, I would get on an airplane right now."

You just have to be smart all the time.

LONG: OK.

COHEN: OK.

LONG: Thanks so much.

Medical Correspondent Elizabeth Cohen.

Thank you.

LONG: For Hong Kong the outbreak is reminiscent of the SARS crisis that was six year ago. That may be why officials are being extra vigilant and have quarantined an entire hotel.

From Asia, here's CNN's Eunice Yoon.

(BEGIN VIDEOTAPE)

EUNICE YOON, CNN CORRESPONDENT: I'm outside of a pharmacy in Hong Kong's famous Nightclub District, Wanchai. Just like so many other pharmacies, this one has facemasks stocked, as well as alcohol and bleach. And they have a surprisingly large stock, probably because they're close to the Metro Park Hotel.

This hotel is in complete lockdown after it was confirmed last Friday that one of the guests, a Mexican national, contracted H1N1. That guest was taken away to an isolation ward in a hospital. But the rest of the guests here are either in quarantine in the hotel or have been taken away to holiday villages outside of the city. The guests are going to have to stay in here for about seven days. You could guess that the Hong Kong media is probably also going to be here for just as long.

As you can see, the entrance is highly controlled. I actually asked somebody at the desk whether or not I'd be allowed in. They told me I could go in, but I wouldn't be allowed out.

Now what we're told is that people in the hotel are allowed to move around freely. You can't really see a whole lot, though, because the hotel put up these white sheets in order to give people a little bit of privacy. Now the only place where you get a glimmer of what's going on inside is through this glass door.

Earlier, we spoke with Jerome Martin (ph), he has four friends who are locked inside. There have been complaints about the quality as well as variety of food offered by the hotel. He came here to deliver some Thai food. He's been in touch with his friends by phone.

UNIDENTIFIED MALE: Seems that everybody's OK inside. No one is really -- no one is sick. No fever, nothing.

YOON: Some of the guests have been complaining the government has been slow to provide basic services. In the past couple of days there have been reports of people doing their own laundry, of rooms not being cleaned, of rubbish piling up in the corridors.

The government now says it's addressing these issues. In addition, they're providing broad band Internet access for free and subsidizing international phone calls to the tune of $25.00 U.S. a day. These measures are likely to provide some comfort to the hotel guests here, but they're also no doubt going to be counting down the days, the hours, as well as the minutes until they can eventually leave Friday night Hong Kong time.

Eunice Yoon, CNN, Hong Kong.

(END VIDEOTAPE)

LONG: Also, a thank you for sending in so many iReports on the flu virus. Let's now check in with CNN.com's iReport Desk and producer Tyson Wheatley.

I know you have a lot of people that are disappointed because travel plans have had to be essentially canceled?

TYSON WHEATLEY, CNN.COM PRODUCER: Yes, that's right, Melissa. You know, behind me there's a picture of a cruise ship. The cruise industry has -- is one of those -- one of those industries that's actually being impacted by the CDC warnings on nonessential travel to Mexico. In fact, five of the world's largest cruise lines recently suspended all trips to Mexico.

As a result, some of these cruise lines have increased stops in other places. One of those places is San Diego where we have an iReporter named Chris Morrow who - she's outstanding. She went down to the waterfront and she went to one of these cruise lines where passengers had been diverted. And she spoke to some as they were getting ready to get back on the ship. And she got some really interesting sound about whether they were disappointed in this trip and whether or not they were worried about the swine flu.

Let's go ahead and play some of the video and take a listen.

(BEGIN VIDEO CLIP)

CHRIS MORROW, CNN IREPORTER: Do you think it's the right idea to bypass Mexico?

UNIDENTIFIED MALE: Probably, under the circumstances. We've been there in Mexico many times and usually feel quite comfortable. But the way things are now, I think it's a good idea.

UNIDENTIFIED FEMALE: My name is Trisha. We're here celebrating my 40th birthday with all my friends and family. And we're heading out on the Elation for four days. And kind of got screwed out of tacos and tequila on Cinco de Mayo, but that's OK. We're going to make the best of it and have a great time.

MORROW: Do you think they made the right decision about not going to Mexico?

UNIDENTIFIED FEMALE: I personally think it's a little overkill. But it is what it is and we're here to have fun.

(END VIDEO CLIP)

WHEATLEY: So Chris also spoke to some local business owners there. And no surprise, there's been a bump in business as these big cruise ships are stopping by.

And of course, we want to know how you, how your life has been affected by the swine flu. We'd like you to go to iReport.com and share your stories with us.

LONG: So that's the assignment for the day?

WHEATLEY: Absolutely. All week, really. So it's one of those stories that people just keep wanting to talk about.

LONG: And the young lady celebrating her 40th birthday, obviously a little disappointed but still having fun with the gals. Good outlook.

WHEATLEY: Absolutely.

LONG: All right, Tyson Wheatley, thank you.

WHEATLEY: All right. Take care.

LONG: We are waiting for President Obama to step to the microphone momentarily. A live picture from the White House of the Grand Foyer. The president will be unveiling reforms today, reforms to the nation's international tax code this morning. Running just a little behind schedule. When the president steps to the microphone, of course, you will hear from him. The president also will be joined by Treasury Secretary Timothy Geithner.

Now already, much opposition, some 200 opposition letters were sent to Congress. Those are critical of the president's tax reform plan.

This is coming up momentarily.

(COMMERCIAL BREAK)

LONG: Reforming international tax codes. What does it mean for businesses that do business overseas? What does it mean for you, the consumer? Learning all about that right now. Before we hear from the president, we're hearing from Timothy Geithner, the Treasury secretary.

This is live from the White House.

(JOINED IN PROGRESS)

TIMOTHY GEITHNER, U.S. SECRETARY OF TREASURY: ... but are never paid.

These are common-sense changes designed to restore balance to our tax code. And combined with other reforms that will be unveiled in the president's budget, these initiatives will help save $210 billion over the next decade.

These resources will make it possible to make permanent the research-and-experimentation tax credit, which is set to expire at the end of this year, providing a tax cut of almost $75 billion over 10 years to businesses who invest at home in American workers.

Mr. President, this is an issue you have championed for a long time. The steps announced today are another important step in creating a fairer tax code and a more productive American economy.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: All right.

Good morning, everybody. Hope you all had a good weekend.

Let's begin with a simple premise: Nobody likes paying taxes, particularly in times of economic stress. But most Americans meet their responsibilities because they understand that it's an obligation of citizenship, necessary to pay the costs of our common defense and our mutual well-being.

And yet, even as most American citizens and businesses meet these responsibilities, there are others who are shirking theirs. And many are aided and abetted by a broken tax system, written by well- connected lobbyists on behalf of well-heeled interests and individuals. It's a tax code full of corporate loopholes that makes it perfectly legal for companies to avoid paying their fair share. It's a tax code that makes it all too easy for a number -- a small number of individuals and companies to abuse overseas tax havens to avoid paying any taxes at all.

And it's a tax code that says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York.

Now, understand one of the strengths of our economy is the global reach of our businesses. And I want to see our companies remain the most competitive in the world.

But the way to make sure that happens is not to reward our companies for moving jobs off our shores or transferring profits to overseas tax havens. This is something that I've talked about again and again during the course of the campaign.

The way we make our businesses competitive is not to reward American companies operating overseas with a roughly two percent tax rate on foreign profit, a rate that costs taxpayers tens of billions of dollars a year. The way to make American businesses competitive is not to let some citizens and businesses dodge their responsibility, while ordinary Americans pick up the slack.

Unfortunately, that's exactly what we're doing.

These problems have been highlighted by Chairmen Charlie Rangel and Max Baucus, by leaders like Senator Carl Levin and Congressman Lloyd Doggett, and now is the time to finally do something about them.

And that's why today I am announcing a set of proposals to crack down on illegal overseas tax evasion, close loopholes, and make it more profitable for companies to create jobs here in the United States.

For years, we have talked about ending tax breaks for companies that ship jobs overseas and giving tax breaks to companies that create jobs here in America. That's what our budget will finally do. We will stop letting American companies that create jobs overseas take deductions on their expenses when they do not pay any American taxes on their profits, and we will use the savings to give tax cuts to companies that are investing in research and development here at home so that we can jumpstart job creation, foster innovation and enhance America's competitiveness.

For years, we've talked about shutting down overseas tax havens that let companies set up operations to avoid paying taxes in America. That's what our budget will finally do.

On the campaign, I used to talk about the outrage of a building in the Cayman Islands that had over 12,000 businesses claim this building as their headquarters. And I've said before, either this is the largest building in the world or the largest tax scam in the world. And I think the American people know which it is: the kind of tax scam that we need to end.

And that's why we're closing one of our biggest tax loopholes. It's a loophole that lets subsidiaries of some of our largest companies tell the IRS that they're paying taxes abroad, tell foreign governments that they're paying taxes elsewhere, and avoid paying taxes anywhere.

In closing this single loophole, we will save taxpayers tens of billions of dollars: money that can be spent on reinvesting in America. And it will restore fairness to our tax code by helping ensure that all our citizens and all our companies are paying what they should.

Now, for years, we've talked about stopping Americans from illegally hiding their money overseas and getting tough with the financial institutions that let them get away with it.

The Treasury Department and the IRS, under Secretary Geithner's leadership and Commissioner Shulman's, are already taking far-reaching steps to catch overseas tax cheats. But they need more support.

And that's why I'm asking Congress to pass some common-sense measures.

One of these measures would let the IRS know how much income Americans are generating in overseas accounts by requiring overseas banks to provide 1099s for their American clients, just like Americans have to do for their bank accounts here in this country. If financial institutions won't cooperate with us, we will assume that they are sheltering money in tax havens and act accordingly.

And to ensure that the IRS has the tools it needs to enforce our laws, we're seeking to hire nearly 800 more IRS agents to detect and pursue American tax evaders abroad.

So, all in all, these and other reforms will save American taxpayers $210 billion over the next 10 years: savings we can use to reduce the deficit, cut taxes for American businesses that are playing by the rules, and provide meaningful relief for hard-working families.

That's what we're doing.

We're putting a middle-class tax cut in the pockets of 95 percent of working families. And we're providing a $2,500 annual tax credit to put the dream of a college degree or advanced training within the reach for more students. We're providing a tax credit worth up to $8,000, for first-time homebuyers, to help more Americans own a piece of the American dream and to strengthen the housing market.

So the steps I am announcing today will help us deal with some of the most egregious examples of what's wrong with our tax code, and will help us strengthen some of these other efforts.

It's a down payment on the larger tax reform we need to make our tax system simpler and fairer and more efficient for individuals and corporations. Now, it will take time to undo the damage of distorted provisions that were slipped into our tax code by lobbyists and special interests. But with the steps I'm announcing today, we are beginning to crack down on Americans who are bending or breaking the rules. And we're helping to ensure that all Americans are contributing their fair share.

In other words, we're beginning to restore fairness and balance to our tax code.

That's what I promised I would do during the campaign. That's what I'm committed to doing as president. And that is what I will work with members of my administration and members of Congress to accomplish in the months and years to come.

Thanks very much, guys.

LONG: Brief comments from President Obama and Treasury Secretary Timothy Geithner in the Grand Foyer of the White House.

As we've been telling you, the president says these initiatives will save at least $210 billion over the next 10 years. The president talking about reforming the international tax code. Also, the president saying this will cut taxes for American families as well.

The president calling it a broken tax system, egregious examples of what is wrong with the tax code, and that companies are simply not paying their fair share due to the loopholes that are in place.

There are, of course, many companies that are in opposition. Two hundred-plus opposition letters have already been sent to Congress by international companies.

The story we'll continue to follow for you today in the NEWSROOM and we'll be right back.

(COMMERCIAL BREAK)

LONG: I'm not sure if you heard about this story or not, but a Dallas Cowboys' staffer is now permanently paralyzed from the waist down after the roof over a practice field came crashing down over the weekend.

This accident happened during a severe thunderstorm on Saturday. Now 12 people were hurt, including Richard Behm, he is a scouting assistant. Doctors says he is the most severely injured, his spinal cord severed by a fractured vertebrae. Yesterday, after back surgery, he was listed in stable condition.

Now, the Cowboys' owner Jerry Jones issued a statement about Rich Behm and says, and I directly quote, "To the Behm Family, we extend our love, comfort and full support of every person and resource within the organization. Rich is a courageous member of our family and someone for whom we care deeply. We ask for all friends and fans of the Dallas Cowboys to join us in embracing him and his family with their thoughts and prayers at this very difficult time." We should tell you that the team owner, Jerry Jones, also offered the team's best wishes to the two other Cowboys employees who were seriously injured on Saturday. Special Teams Coach Joe DeCamillis fractured one of his cervical vertebrae, but he has no paralysis. He is actually scheduled for surgery today. And the assistant trainer Greg Gaither suffered fractures in his right leg. He had surgery over the weekend on Saturday night and he's expected to be released this week.

Let me bring in Rob Marciano from the CNN Weather Center to find out more about that nasty weather that traveled through that caused that terrifying collapse.

(WEATHER REPORT)

LONG: Now, would you do this? Would you go under the knife to save your job? Next hour, we're going to look at why some women feel plastic surgery is now part of the job description in this recession.

Plus, we're live at Arlen Specter's town hall meeting. The republican turned democrat is now facing constituents following the big switch-a-roo.

(COMMERCIAL BREAK)

LONG: I think this is a pretty good rule of thumb: Never post anything online you wouldn't want your mother to see. What you may think is private may, of course, not be and it could cost you, big time.

Here's CNN's Alina Cho.

(BEGIN VIDEOTAPE)

ALINA CHO, CNN CORRESPONDENT: Did you ever in your wildest dreams think that making a comment like this on MySpace would get you fired?

DOREEN MARINO, FIRED FOR COMMENTS ON MYSPACE: Absolutely not. Never in a million years would I have thought that this was going to get me fired.

CHO (voice-over): It did. Doreen Marino says she was blindsided when in 2006 her boss at this Houston's restaurant in Hackensack, New Jersey fired her. Not for bad performance or calling in sick, but for allegedly making derogatory comments about one of her managers in a private discussion group on MySpace -- members only, password required, created specifically so she and other co-workers could gossip.

(on camera): You want to vent?

MARINO: Better to vent there, in my opinion. Take it somewhere where no one's going hear you.

CHO (voice-over): Marino was wrong. She says managers at the restaurant got a hold of the password, didn't like what they saw, and as a result, according to Marino, fired her and another worker.

(on camera): Did you feel like that was a violation of your privacy?

MARINO: Absolutely. They weren't invited. They were not members of the group. In my opinion, I felt they had no business being there.

CHO (voice-over): She's so mad she and the co-worker are suing the owners of Houston's for invasion of privacy.

The parent group of Houston's would not comment about the lawsuit, but in a statement to CNN said, quote, "This is not a case about cyber-snooping, the First Amendment, or privacy. It's about two staff members who are let go for unprofessional conduct, including," says the company, "disparaging comments about our guests and sharing a product knowledge test before it was administered. This misconduct was voluntarily brought to light by a member of the online group."

(on camera): Is it reasonable to expect that, you're writing things on MySpace somebody's not going to see it?

MARINO: That means - where do we draw the line? We have the right to say what we want in a private environment.

CHO (voice-over): Or do they?

NICHOLAS THOMPSON, SENIOR EDITOR, "WIRED" MAGAZINE: Technology is changing faster than the law and faster than our social norms. So the law and the courts don't really know how to handle this. And it's not like they'll catch up.

CHO: Marino says she's hoping to set a precedent.

MARINO: There has to be something - some sacred space in our lives where we can feel comfortable speaking our minds.

CHO (on camera): That is at the heart of the debate. One Internet expert says there are no laws on the books to deal with this. The problem is that the Internet is changing than the laws can be written. The expert says, today there's a lawsuit on MySpace; tomorrow there will be a similar case on Twitter. The norms, he says, have changed.

Alina Cho, CNN

(END VIDEOTAPE)