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Town Hall Free-For-Alls; President Obama: 'The Worst May Be Behind Us'; Should You Junk Your Clunker?; Health Care Fraud a Forgotten Problem; Movie Director Hughes Dies; Two Rhode Island Doctors Slash Expenses By Cutting Costs; The Weekend to Save on Sales Tax; Leader of Pakistani Taliban Reportedly Dead

Aired August 07, 2009 - 14:00   ET

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

MAX PAPPAS, FREEDOMWORKS: We don't want them to yell and shout down people. We want them to try to talk to the congressmen.

CAROL COSTELLO, CNN CORRESPONDENT (voice-over): But some Democrats say Max Pappas' conservative group, FreedomWorks, doesn't want that at all. Some claim it urges its thousands of members to participate not in a discussion about health care reform, but a shout- down.

PAPPAS: You get some instances where people are so passionate about what's going on, that they get caught up in the emotions. And instead of having a civil discussion, they do start yelling or chanting, but that's only because they're passionate about this.

COSTELLO: But Democrats say plenty of likeminded organizations want it to work out that way. That's why RecessRally.com lists where town hall meetings will be held, or why Operation Embarrass Your Congressman celebrates making lawmakers look foolish. Though you could argue those sites don't leave out Republicans.

There is one senator who was shouted down himself down at a town hall meeting who says all of this doesn't matter.

SEN. ARLEN SPECTER (D), PENNSYLVANIA: My preference would be to have it more sedate but, listen, democracy is robust, can be rough and tumble. And nothing really surprises me anymore.

COSTELLO (on camera): But other lawmakers are adjusting, holding teleconferences instead of town hall meetings and talking one on one with constituents at places like senior citizen centers. They say they want an intelligent conversation.

Carol Costello, CNN, Washington.

(END VIDEOTAPE)

FREDRICKA WHITFIELD, CNN ANCHOR: And now comes word that organized labor plans to go head to head with anti-reform activists. And we have to wonder, is this any way to set policy affecting every single American. Is it even possible to ratchet down the rhetoric?

Carrie Budoff Brown is a reporter for Politico.com who has written on this at length. And so, Carrie, give me an idea. I understand the White House has actually been prepping Democrats to brace for this kind of behavior.

CARRIE BUDOFF BROWN, POLITICO: Exactly. I mean, there were -- this week, with the House already on recess, you had the Senate prepare three days' worth of meetings. And at every meeting, it was sort of a going out there, trying to prepare senators, giving them tips yesterday.

Two top White House officials came to the Senate, showed clips of some of these town halls, and advised them to really prepare for these events, which, maybe in the past, they would just call a meeting and see who shows up and hope for the best. But now, they are advising senators to prepare for them, meaning reaching out to your supporters, get them to come there, and prepare your supporters in case there is some sort of confrontation.

There can be sort of counterbalance. So there's a lot more thought going into these town halls than I think we've seen.

WHITFIELD: And part of that -- and is it true that part of that preparation also means trying to direct the dialogue? I guess the emphasis the White House wants made by the Democrats is for them to concentrate these conversations on what it means to insured Americans, as opposed to what it means to the uninsured. Why would that make a difference?

BROWN: Well, absolutely. The advice that was given to the senators, there was a lot of messaging. And David Axlerod, a senior adviser at the White House, passed out polling data that showed these are the popular messaging tips.

You should emphasize that consumer protections, that individuals will not lose their insurance if they have a pre-existing condition, that their out-of-pocket costs for health care will be limited. The idea is to steer the conversation to proposals that are popular, and away from the controversial proposals such as the public option, which draws a lot of criticism.

So, Democrats were encouraged to talk about insurance reforms. They called it consumer protection to try to appeal to a couple of demographics -- women, Independents, rural voters.

WHITFIELD: Is there any real dialogue or even concern as it pertains to the White House and Democrats talking about health care reform as to who might be at the root of these disruptions, or is that distracting from the message that Democrats want out?

BROWN: Well, there has been a lot of discussion about that this week. And definitely, the Democratic Party leadership has promoted the idea that these are groups that are being organized by Washington lobbyists. I think we have heard some senators yesterday, though, say, look, there are people out there with legitimate concerns. People are not happy. We need to listen to them. And it is throwing the Democrats off their game a little bit. This is not, I believe, what they expected going into this recess. I think they expected some of this give-and-take, but to this level, I think it's caught them off guard.

WHITFIELD: All right. It's going to be a long, hot August. Right?

BROWN: It seems like it that way so far.

WHITFIELD: All right. Carrie Budoff Brown, thanks so much, of Politico.com. Appreciate your time.

BROWN: Thank you for having me, Fredricka.

WHITFIELD: All right. Well, here's a health care fact that no one disputes these days -- fraud drives up costs for everybody. CNN's Allan Chernoff digs into that later on this hour.

And the worst may be behind us. A guarded prognosis on the U.S. economy from the man elected to fix it.

As you saw here live last hour, President Obama talked about an unexpected dip in the nation's unemployment rate and other recent signs the recession just might be easing.

CNN's Dan Lothian joins me now from the White House.

All right, Dan, talked to Jared a little bit earlier, Jared Bernstein, who says the White House is trying not to celebrate or gloat too much, but at the same time, they don't want to, I guess, undersell these little glimmers of hope.

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: That's right. I mean, there is no celebration going on here at the White House, and they've always been very cautious when talking about the direction that they believe this recovery is going in. But it was interesting to listen to the president, the remarks that he made not long ago, really striking what sounded like a very strong, optimistic tone about the direction of the economy.

I just wrote down some of the quotes that really jumped out at me.

The first one, "The worst may be behind us." He also said today, "We are pointed in the right direction." Then there was, "As we begin to put an end to this recession," and then ended with, "We can see a light at the end of the tunnel."

Certainly, the president, this White House encouraged by the unemployment numbers, but still thinking that there's still a lot more work to be done.

(BEGIN VIDEO CLIP)

BARACK H. OBAMA, PRESIDENT OF THE UNITED STATES: We have a lot further to go. As far as I am concerned, we will not have a true recovery as long as we're losing jobs. And we won't rest until every American that is looking for work can find a job.

I have no doubt that we can make these changes. It won't be easy though. Change is hard, especially in Washington.

We have a steep mountain to climb and we started in a very deep valley. But I have faith in the American people and their capacity for hard work and innovation, and their commitment to one another, and their courage to face adversity.

(END VIDEO CLIP)

LOTHIAN: At his morning gaggle, spokesman Robert Gibbs says that he still expects the unemployment numbers to hit double digits at some point in the future. And the analogy that he uses is a patient that had a life-threatening illness. He says that patient has now been stabilized but they will have good days and bad days -- Fredricka.

WHITFIELD: All right.

Dan Lothian at the White House.

Thanks so much. Appreciate that.

All right. More now on those job numbers.

Analysts expected unemployment would keep going up and layoffs in July would top 300,000. Instead, employers cut 247,000 jobs, the fewest since last August. And the jobless rate fell from 9.5 to 9.4 percent. The rate had not dropped since April of last year.

All right. So, before you celebrate, analysts say the drop is due, in part, to job seekers actually giving up and dropping out of the labor force, or perhaps just taking part-time work. But Labor Secretary Hilda Solis says jobs are out there.

(BEGIN VIDEO CLIP)

HILDA SOLIS, LABOR SECRETARY: Here's an opportunity now to look in health careers and IT, and also those other emerging industries. We're starting to see some uptick, for example, in health care, allied health care careers, and also in IT, but also renewable energy.

You've got to think about those people that lost their jobs, that may not be coming back here, but could get into, say, solar energy types of positions, and also any renewable energy type of job that could help provide them with a lasting income and one that will hopefully bring them up anywhere from 10 percent to 20 percent in their earnings. And that's something that's realistic.

And the president just this week issued $2.4 billion in the creation of lithium batteries. So, we are putting money towards the research and development and there will be job creation.

(END VIDEO CLIP) WHITFIELD: All right. As White House Correspondent Dan Lothian just reported, the administration still expects unemployment to rise, perhaps hitting 10 percent before the recovery takes hold.

All right. Millions of you graded President Obama on his 200 days for CNN's "National Report Card." In about 20 minutes, we'll get the tally from CNN's Tom Foreman.

And for now, Cash for Clunkers gets an incomplete. Earlier today, President Obama signed off on a $2 billion extension of the rebate program, but does that mean that you should rush to junk your clunkers?

Let's bring in Personal Finance Editor Gerri Willis.

(BEGIN VIDEOTAPE)

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hi there, Fred.

The bottom line is that one of the reasons the U.S. automakers is in trouble now is because people took out car loans they simply couldn't afford. Last year, almost 25 percent of Americans who bought a new car still had an average almost $4,500 in negative equity when they trade it in.

Here are some rules of thumb when it comes to figuring out if you can afford a new car.

First off, your monthly payment shouldn't be more than your 20 percent of your after-tax monthly income. And keep in mind, I'm not even talking about gas, insurance, or maintenance. Stick to a loan term of 48 months, don't go out 60.

And finally, aim to put down 20 percent. Now, this reduces the size of your loan and your monthly payment.

You can calculate how much you can afford at Edmunds.com. And if you do want to take advantage of Cash for Clunkers, don't forget there are other goodies on the table. On top of the government rebate, some dealerships are offering cash incentives to get you to buy. You may also qualify for cash rebates because you're affiliated with a specific employer, credit union or university. And don't forget that a lot of new car buyers will also qualify for a federal income tax reduction.

Back to you.

(END VIDEOTAPE)

WHITFIELD: All right. Thanks, Gerri.

A painful reminder of America's racist past -- the hangman's noose. One state moves to bar its display, but there is a loophole.

(COMMERCIAL BREAK) WHITFIELD: All right. Two firsts tomorrow for Judge Sonia Sotomayor. She will be sworn in as the first Hispanic justice on the U.S. Supreme Court, and it will be the first time the high court ceremony will actually be televised.

Sotomayor easily won Senate approval yesterday. President Obama praised the vote as breaking another barrier and, as he put it, moving us yet another step closer to a more perfect union.

Sotomayor is the first Democratic nominee added to the court in 15 years. She is also just the third woman in the court's history.

A year in jail and a fine of up to $5,000, that's the penalty for anyone convicted under California's new anti-noose legislation which was signed into law yesterday. It bars placing such displays on school grounds, in work places, or on someone else's property, but a stipulation allows homeowners to put up such a display under free speech protection. The law is set to take effect New Year's Day.

All right. We would love to hear what you think about California's new anti-noose law. Join the conversation. You can tweet us at KyraCNN. We'll share some of your thoughts on this, and we'll bring that to you later on in the NEWSROOM.

All right. With the nation's highest murder rate and one of the highest crime rates, New Orleans is still struggling after Hurricane Katrina. Two murders this year involved kids who were just 14 years old.

CNN's Hero of the Week is fighting hard to keep kids off the streets and out of trouble using the power of music.

(BEGIN VIDEOTAPE)

ANNOUNCER: This is CNN Heroes.

DERRICK TABB, CNN HERO: Music's just always been with me. I love to play it. I keep drumsticks in my hand.

The music in New Orleans is really dying fast. Life after Katrina is really hard for a kid. You have violence, the drug life. I'm just tired of it. My aim is to get kids off the streets.

My name is Derrick Tabb, and I started a free music education program for the kids in New Orleans.

Let's go. Horns up.

We do more than just teach music. We offer transportation. We offer instruments.

I'll feed so you're not hungry. I'll give you tutoring.

UNIDENTIFIED MALE: Which one, HR3?

TABB: I call it the "No Excuse Policy." You don't have no excuse why you're not here.

You don't have to have any experience.

Press down on it just like that.

We meet five days a week year-round. You're constantly learning something new, and that's what keeps the kids coming back every day.

UNIDENTIFIED MALE: I was getting in trouble. Now, when I'm here, I practice. When I'm at home, I practice. It's just changed my life.

TABB: I love seeing kids happy, just having fun.

You have to keep teaching these kids culture.

I don't say that I'm saving life. I say I'm giving life, a whole different life of music.

(END VIDEOTAPE)

WHITFIELD: All right. Pretty extraordinary guy, pretty extraordinary effort there. And you can find out more about Derrick Tabb or any of our heroes on our Web site, CNN.com/heroes. And in just a few weeks we'll actually be announcing the top 10 CNN Heroes of 2009.

All right. He was the man behind such movies as "The Breakfast Club," "Planes, Trains & Automobiles," and "Home Alone." A look back at the career of Hollywood's John Hughes.

(COMMERCIAL BREAK)

(WEATHER REPORT)

WHITFIELD: All right. One day after four employees were indicted in Chicago's cemetery plots for profit reselling scandal, the Cook County sheriff and the FBI announced the evidence-gathering portion of their investigation is over. Authorities say they have recovered some 1,200 pieces of evidence in a scam they believe went on for as many as five years and pocketed hundreds of thousands of dollars. Authorities admitted that they were unable to identify some of the remains, however, recovered.

All right. Four-and-a-half months of captivity in North Korea. Two days and counting, a family bliss at home. We'll get an update on Laura Ling and Euna Lee from Laura's sister, Lisa.

(COMMERCIAL BREAK)

WHITFIELD: So, we asked you to grade President Obama as he wraps up his second 100 days in office, and the results are in.

CNN's Tom Foreman shows us at the magic wall.

(BEGIN VIDEOTAPE) TOM FOREMAN, CNN CORRESPONDENT: We told you how to vote yesterday, and here are the results.

For the general handling of the economy, a C minus almost all across the country. It's not looking very good. I'm going to circle an area here, and I want you to pay attention because this area really matters. I'll tell you why in a minute.

But first, let's look at really what happened that made such a big difference in all this. And I want to go to a particular date. If we go up here to the 17th, listen to what the president was saying about health care reform.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: So this is what health insurance reform will mean for the average American. It will mean lower costs, more choices, and coverage you can count on.

FOREMAN: He has been trying to sell that message over and over and over again. But if you go back here to 167, this is part of the problem. Here's Joe Biden talking about the overall economy.

JOE BIDEN, VICE PRESIDENT OF THE UNITED STATES: There was a misreading of just how bad an economy we inherited. Now, that doesn't -- I'm not laying assignment -- it's now our responsibility. So the second question becomes -- did the economic package we put in place including the recovery act, is it the right package given the circumstances we're in?

FOREMAN: So those were the messages that were coming out of the White House. But this was the result. They got hammered on the economy. And, look at this.

On health care, they really got hit and they got hit by this part of the country. Why? That's part of the older part of the country. More people here are older than elsewhere. These are people who gave them much better ratings earlier on.

When the question was how do you handle swine flu, they like it. There are older people who want to care on that. And in the event, the combination of health care and overall economy really beat them up quite badly. And when you move down the line here to the overall ranking of President Obama, you see what happens -- he winds up with a C minus even in his home state of Hawaii down here.

The best he can do is a C plus, not the kind of ratings he wants, especially when you look back 100 days and you see back then, much, much, much higher ratings all the way around.

(END VIDEOTAPE)

WHITFIELD: All right. What a difference 100 days makes. August possibly a make or break month for health care reform. The Senate has been trying to push forward on the issue, the top item on President Obama's domestic agenda. Bills in the Senate and one already improved in the House are meant to dramatically expand health insurance coverage while getting spending under control. But there's a major gap in Washington's plan as senior correspondent Allan Chernoff reports.

(BEGIN VIDEOTAPE)

ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: The problem is fraud. Tens of billions of dollars is lost to health care fraud every year. It's a major reason our health insurance premiums keep rising and Medicare and Medicaid are draining the Treasury. Yet for all the talk in Washington of controlling health care costs, the issue of fraud is getting little attention.

(voice-over): Theresa Langlois knew her podiatrist was cheating Blue Cross/Blue Shield of Michigan when she read her insurance statement. Dr. Jeffrey Cook had billed thousands of dollars to surgically remove dozens of warts when Theresa only had a discolored toenail.

THERESA LANGLOIS, PATIENT: It was like robbery. I mean, they were overcharging for a procedure that wasn't done.

CHERNOFF: Theresa called Blue Cross, which investigated, ultimately leading to the arrest and imprisonment of podiatrist Jeffrey Cook. Health care fraud perpetrated by doctors, pharmacists, even organized crime gangs is rampant. Senate investigation found Medicaid in recent years paid nearly half a million claims to people posing as doctors who were dead. Such fraud costs every American. It drives up prices for medical insurance, treatment and drugs.

DOUGLAS FALDUTO, HORIZON BLUE CROSS BLUE SHIELD: I think it's just a domino effect that ends up with the consumer. Somebody has got to reimburse for it. Somebody's got to fund that. And ultimately it gets passed down.

CHERNOFF: That's why major health insurance companies have special investigations units to weed out fraudulent claims.

FALDUTO: We want to get that money back.

CHERNOFF: Falduto and other investigators estimate fraud accounts for a minimum of 3 percent of all health care spending, $72 billion a year. Other experts say the figure is more than three times that, topping $200 billion.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: If we do not reform health care, your premiums and out-of-pocket costs will continue to skyrocket.

CHERNOFF: President Obama warns health care reform is needed to get medical costs under control. But one of the biggest culprits, fraud, gets little mention in the congressional reform effort.

PROFESSOR MALCOLM SPARROW, HARVARD UNIVERSITY: They're certainly aware of this problem. They don't seem to know the magnitude or the seriousness. They don't seem to be acting with the kind of urgency that I would like.

CHERNOFF: The health reform bill approved in the House, 1,018 pages long, devotes only 40 pages to the issue of fraud. Even bills in the Senate would add $100 million a year to combat fraud, waste and abuse. That's the amount of health care fraud occurring in this country every 12 hours, using the most conservative estimates.

(on camera): That level of corruption is one of the big reasons our medical bills rise steadily every single year. Yet in the big push in Washington has been to provide health coverage for more Americans. Experts warn if fraud isn't addressed more aggressively, American taxpayers will be paying billions more than needed to provide health insurance for those who don't have it.

Allan Chernoff, CNN, New York.

(END VIDEOTAPE)

WHITFIELD: Florida Republican Senator Mel Martinez is resigning more than a year early. He sent a note to supporters today telling them that he's quitting once a replacement has been made. Martinez had already said that he would not seek re-election next year.

So, who will fill the seat? It won't be Republican Governor Charlie Crist. Crist is a leading candidate for the job in 2010, but he says he will not appoint himself to replace Martinez.

Pizza feast and family time. That's how Laura Ling and Euna Lee are spending their first few days back on American soil. The two journalists flew home from North Korea Wednesday with President Bill Clinton, who secured their release. They're emotional and exhausted after almost five months in detention, says Laura's sister, fellow journalist Lisa Ling. She tells CNN the woman -- the women, rather, have some jaw-dropping stories to share. Among them, the incident that led to their arrest.

(BEGIN VIDEO CLIP)

LISA LING, SISTER OF FREED JOURNALIST LAURA LING (via telephone): It was something that, you know, they were never planning to do originally. I mean, I said this before that when they left U.S. soil, they never intended to cross into North Korea. And, you know, they -- I mean, she said that it was maybe 30 seconds and then, you know, everything just sort of got chaotic.

(END VIDEO CLIP)

WHITFIELD: Lisa Ling says Laura and Euna were treated humanely by the North Koreans, possibly because of some medical issue.

All right, fade to black. Hollywood is mourning the loss of renowned writer, producer and film director John Hughes, who died yesterday in New York. Hughes will be best rembered for his hugely popular coming of age comedies that boosted so many acting careers. Take a look now from Thelma Gutierrez.

(BEGIN VIDEOTAPE)

THELMA GUTIERREZ, CNN CORRESPONDENT (voice-over): For young people, his films defined the '80s. In coming-of-age comedies like "Sixteen Candles," writer-director John Hughes showed American teenagers coping with real-life social problems.

UNIDENTIFIED MALE: What in God's name is going on in here?

GUTIERREZ: Most of his teen stories were set in Shermer, Illinois, a fictional town that reflected his suburban Chicago upbringing.

1985's "The Breakfast Club" centered on a group of high-schoolers who bond over weekend detention. It fueled the careers of the Brat Pack, stars like Emilio Estevez, Judd Nelson, Anthony Michael Hall and Molly Ringwald.

Lighter fare like "Ferris Bueller's Day Off" and "Weird Science" followed, as did romantic teen dramas such as "Pretty in Pink" and "Some Kind of Wonderful."

Like his young characters, Hughes eventually graduated to the adult world, writing and directing "Planes, Trains and Automobiles" with Steve Martin and John Candy.

He carved out a new niche as the creator of family films like "Beethoven" and the wildly successful "Home Alone" starring Macaulay Culkin.

In his later years, Hughes retreated from the Hollywood spotlight, occasionally contributing the odd story idea. But he'll be remembered best for the films in which a generation of teenagers saw themselves.

Thelma Gutierrez, CNN, Hollywood.

(END VIDEOTAPE)

WHITFIELD: Cutting health costs by slashing expenses. Two Rhode Island doctors go back to basics, and their patients say it shows on the bill.

(COMMERCIAL BREAK)

ANNOUNCER: Live in the CNN NEWSROOM, Fredricka Whitfield.

WHITFIELD: It's a make or break month for health care reform. Some of the biggest unseen costs are overhead, staffing, paperwork, salaries. So, whatever happened to affordable family doctors, small practices and house calls? Photojournalist Bob Crowley puts health care in focus with a pair of doctors reviving the old ways in Rhode Island.

(BEGIN VIDEOTAPE)

DR. ANDREA ARENA, BARRINGTON FAMILY MEDICINE: Thank you for the medicine, Dr. Eno (ph).

My partner, Lisa and I opened a small practice -- I think it's been a year and a half now. When you walk in the door, you are going to see an arrangement of flowers where you normally would see a secretary sitting. There is no staff.

DR. LISA DENNY, BARRINGTON FAMILY MEDICINE: We don't have a secretary, we don't have a nurse. We don't have an office manager.

ARENA: You are probably not going to see other patients because we don't double book. We put the bell there because we got tired of hearing people say, are you there?

We are called Ideal Medical Practice.

How have you been?

Having fewer patients in your practice allows you to spend more time with them. The idea is to lower your overhead so that you can spend more time with patients, really focus on quality care.

DENNY: This is a practice that's been completely redesigned.

UNIDENTIFIED FEMALE: What can I help you with?

DENNY: We use computers a lot to do what usually a staff does. We can click a button and our prescriptions get sent off to the pharmacy. We can push a button, and our referrals get faxed over. Our computer automatically e-mails patients before their visit so we don't have to call each one to remind them about their appointment. We wanted to be the kind of doctors that we were trained to be. We both really value the relationship with our patients.

ARENA: We're doing a home visit for a newborn. He needs a weight check. He is two weeks old. You can learn a lot by going to people's homes. Yes, this is it.

Hi.

UNIDENTIFIED FEMALE: Hi.

ARENA: How are you doing? Not many people do house calls.

It is great for the patient, lovely for a mom with three toddlers.

UNIDENTIFIED FEMALE: It's hard to get out the door with a newborn. So it is nice to have them come to you.

ARENA: See you guys. Bye-bye.

DENNY: This is what the medical assistant usually does.

The traditional primary care doctors office need to see patients quickly, every ten minutes in a traditional setting. I think that's where you have the doctor holding on to the door handle saying, everything else okay, right? Nothing else is a problem, because you don't have time to address it if you get a positive answer.

It is like it was 60 years ago. It is not a stressful work environment, kind of fun.

(END VIDEOTAPE)

WHITFIELD: Preparing for the spread of the H1N1 flu, the government unveiled updated guidelines today for schools. Remember, many schools were forced to close during the initial outbreak of the so-called swine flu this spring. Today, they are saying schools should only be closed in extreme situations.

Here are some of the guidelines. Kids with the flu should be kept at home and away from school and the mall, of course. It also goes for teachers and other school staff. They should stay home for at least 24 hours after the fever breaks. Schools should regularly clean areas that are likely to have a lot of hand contact. Also, schools should consider active symptom screening for kids as they arrive at school in an effort to catch illnesses early.

If you are planning to hit the stores for some back to school shopping, this is the weekend to save on sales tax. So many states. Jeannie Yerman (ph) has the breakdown from New York. Hi, Jeannie.

JEANNIE YERMEN (ph): Hi, there, Fred. More than a dozen states are offering tax-free holidays this month on clothing and school supplies. Ten of those will occur this weekend. Today, tomorrow, and Sunday -- excuse me. Today and tomorrow in Iowa and Louisiana. The other eight states include today, tomorrow, and Sunday as well.

Now, how much you will save depends on the state. In Virginia, you don't have to pay sales tax on individual clothing items costing less than $100 or on school supplies under $20. In Louisiana, you can buy pretty much anything under $2,500 and avoid state sales tax. Six of those states -- they have sales tax exemptions on computers. If you are in the market for a new PC or laptop, this could be the weekend to buy. Fred?

WHITFIELD: Wow, those are some good deals there. We know consumers love these tax-free holidays. Aren't they also a mixed blessing for certain states?

YERMEN: Without a doubt. States are losing out on a big chunk of tax revenue. With budgets so strapped already, a lot of states are rethinking whether or not to offer these temporary tax breaks. Florida, Massachusetts, and Maryland have all decided against August tax-free weekends this year.

Washington, D.C. was supposed to have one this week. It pulled out last week saying it would have cost the city, $640,000 in revenue, a loss it can't afford when it is struggling with a deficit of more than $660 million. So, Fred, a lot of D.C. residents are very likely to head across the river to Virginia for the tax-free holiday that is taking place there this weekend. So, it could backfire on the city.

WHITFIELD: That's just a hop, skip, and jump for the folks in D.C. But I know a lot of folks in these jurisdictions are probably pretty understanding of the crunch that so many cities and states are facing. So, Jeannie, thanks so much, appreciate it. In the meantime, California bans the public display of nooses. What do you think about that? We'll have your comments straight ahead in the NEWSROOM.

(COMMERCIAL BREAK)

WHITFIELD: Five more U.S. troops killed in Afghanistan in the past two days, making 12 so far this month. July saw 44 troops killed, the most in the Afghan war to date. Perhaps not coincidentally. The new CNN/Opinion Research Poll shows support for the war has hit a new low. Forty-one percent of Americans say they favor the war, down nine points from May. Fifty-four percent oppose it.

And we are not at war in Pakistan, unless you count missile strikes from a drone aircraft. A strike on Wednesday is believed to have killed the leader of the Pakistani Taliban. Baitullah Mehsud was also the prime suspect in the assassination of former Pakistani prime minister Benazir Bhutto . His reported death came up moments ago at the White House.

(BEGIN VIDEO CLIP)

ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: We have obviously seen reports, even by members of the Taliban, that Baitullah Mehsud is dead. We can't with 100 percent certainly verify that. What I will say is this. If the reports of Baitullah Mehsud's death are correct, there is no doubt the Pakistani people are safer as a result of it.

(END VIDEO CLIP)

WHITFIELD: In March, the U.S. put a $5 million bounty on Mehsud's head. Rick Sanchez, Team Sanchez, coming up. Just a few minutes, nine minutes away. What's going on?

RICK SANCHEZ, CNN ANCHOR: You know, this is something that's real special, and it is something that I am very protective of. When a woman, a mother, loses her son in war and says to you, "Mr. Sanchez, come to my house, I want to tell you my story, I want to share Anthony's story with the rest of the country and you are invited to bring your cameras to Arlington National Cemetery to watch him be buried," you know, God bless her. She is special.

We are going to honor her request. I think we have some video now that I can share with you. This is from Arlington National Cemetery. You will see it in its entirety today. That's Anthony Lightfoot. We usually don't show you these things. For the past nine years or so, we have been pretty much prevented from showing you these things. Now, we are, because the parents say, we want you to. We are very respectfully and at a distance showing you this. That's her, by the way...

WHITFIELD: Receiving the flag.

SANCHEZ: She is a 22-year veteran. She's a soldier herself. Her son decided to go into battle, and he died there. She wanted to tell this story, because she thinks all Americans should know of her son's sacrifice. She says, his sacrifice stands for the sacrifice of so many others. She wants to make sure they are not forgotten. Who can blame her?

WHITFIELD: What an extraordinary invitation and a very difficult, very somber moment for this family and lots of families across the country.

SANCHEZ: We went out -- Dave Johnson and Michael Heard on my staff have been working on this for quite a long time. We have really put a lot into it. We are proud of this. We think it is respectful. We think it is nice. We are looking forward to sharing this. It is going to be almost an entire half hour of our newscast today that we are dedicating to just her story and this incredible access and this exclusive interview at 3:30.

WHITFIELD: We look forward to that. Our hearts go out to that entire family.

SANCHEZ: Thanks, Freddie.

WHITFIELD: Rick, appreciate that.

WHITFIELD: Earlier in the NEWSROOM, we told you about a new law in California outlawing the threatening display of nooses. We asked you to send your thoughts. Here they are.

Biggest loser 3 writes, "I've got just one question. When is a noose not a threatening display?" Stone of ages says this, "We are a community nationwise. Laws should promote free speech but stop, hate, murder and assault speech, encourage discussion, not battery." And Ralph Jacobson put it this way. "We have to lighten up just a bit. Everything is offensive now. Just live and let live. I'm in L.A. Stop the madness," he says. Thanks for all of you for your comments.

They told police they had seen stuff like this on television. Young rape suspects questioned after that attack on an eight-year-old girl. We have the latest from Phoenix.

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WHITFIELD: New details in the Phoenix child rape case that we've been following since last month. The horrific gang rape of an eight- year-old girl allegedly by four neighbor boys. The girl stays in police custody after the police reported that her parents blamed and disowned her. The latest from Marissa Wingate of KTVK.

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MARISSA WINGATE, KTVK-TV CORRESPONDENT (voice-over): There are disturbing new details an eight-year-old girl lured with gum into this apartment shed where police say four fellow Liberian refugee boys ages nine through 14 raped her, admitting she was screaming to stop and it was hurting her.

It is the reason Liberian ambassador, Edwin Sele is in Phoenix. EDWIN SELE, LIBERIAN AMBASSADOR: We want to talk as Liberians. What happened, really, so we can know the facts.

WINGATE: Police say the facts are in the report now in the hands of the ambassador. It describes the father blaming his daughter, saying it is his fault and telling investigators he did not care if his daughter ever returned to their family.

(on camera): In these papers, a family friend translating to police say the father was yelling at his daughter saying she should not have gone outside and is always causing problems for the family and constantly ruining their chances of getting citizenship.

(voice-over): During this time, investigators say the mother tried to drag her daughter into the apartment by the ear.

MOTHER OF VICTIM: One of the doctors says, says something happened, but nothing happened to my daughter.

WINGATE: To us, the parents denied a sexual assault even happened. (INAUDIBLE) When we asked what should happen to the suspects...

UNIDENTIFIED MALE: Nothing. Let every one of them be safe and (INAUDIBLE) bless them in peace.

WINGATE: The ambassador took a tour of Child Help, where investigators interviewed the victim's father. The report says the father was detached and told officers he has a TV and DVD player. There was no reason for his daughter to go outside.

UNIDENTIFIED MALE: I think it is important that we recognize that act does not reflect their culture.

SELE: I have heard of two evictions of Liberians because they say, we don't want repeats around her.

WINGATE: While the ambassador could not confirm those allegations, he hopes miscommunication is what caused these.

(END VIDEOTAPE)

WHITFIELD: The deputy ambassador said his meetings with Phoenix police showed him they have conducted a fair, unbiased investigation. I'm Fredricka Whitfield. Rick Sanchez is up next.