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Perry Revives Birth Debate; Perry Unveils Flat Tax Plan; Help for Underwater Homeowners; Baby Rescued from Earthquake Rubble; Tunisia's Elections Called Free and Fair; Four Delta Sigma Theta Members Attacked; 800,000 Netflix Subscribers Quit; Northern Lights in the Deep South; Heart-Warming, Bedtime Story

Aired October 25, 2011 - 09:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: Good morning ladies. Thank you so much.

It's the top of the hour and this morning Republican presidential Rick Perry unveils a new tax plan that's sure to get Americans talking. Would you rather stick with your current tax rate or simplify your life with a flat rate tax of 20 percent?

We're all over it this morning. Paul Steinhauser and Jeanne Sahadi. But first Rick Perry's big announcement overshadowing this subject.

Paul, Perry, once again, reviving questions about President Obama's birth certificate. This morning he was at it again.

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: He sure was. Two days in a row now, it seems, Kyra. And yes, could be overshadowing the unveiling of his big tax and economic plan.

It all started over the weekend. Perry, the Texas governor who of course is running for the GOP nomination, in an interview with "Parade" magazine, not in the newspaper hard copy, the most -- a lot of Americans get, but on the online edition.

He talked about the president and his birth certificate and he said he believes the president was born in the United States, but well, he was a little less confident on that birth certificate. Of course, released earlier this year by Hawaii after a request from the president.

You know he went on to say in that interview, I don't know, I had dinner with Donald Trump the other night, and he doesn't think it's real. Trump, of course, as you remember, was flirting with a bid for the GOP nomination earlier this year and part of that was a push for the president to reveal his birth certificate and questions whether the president was really born in Hawaii.

Well, it continued this morning in an interview that was released by CNBC, an interview with John Harwood, their top political guy. Here's what Perry said. Take a listen.

(BEGIN VIDEO CLIP) GOV. RICK PERRY (R), PRESIDENTIAL CANDIDATE: I've seen his grades. My grades ended up on the front page of the newspapers, so let's -- you know, if we're going to show stuff, let's show stuff. But, look, that's all a distraction. I mean I get it. I'm really not worried about the president's birth certificate. It's fun to poke at him a little bit and say, hey, how about -- let's see your grades and your birth certificate.

(END VIDEO CLIP)

STEINHAUSER: So, Perry later today, Kyra, after he unveils his tax plan, he holds a news conference in Columbia, South Carolina, at 3:30 this afternoon. My guess is our Jim Acosta who'll be down there and other reporters will be asking him a little bit about this birther controversy -- Kyra.

PHILLIPS: Of course, we'll talk about that, but also, let's talk more about Perry's flat tax plan. A number of the candidates now coming forward talking about their ideas to what is the best way to go.

STEINHAUSER: Exactly. Maybe Perry is looking for a little of that 9-9-9 mojo that Herman Cain had. Of course that tax plan that Cain has been touting is taken him from an afterthought to pretty high up in the polls in the battle for the nomination.

Let's take a look at Perry's plan. It calls for, as you mentioned, a 20 percent flat tax, or Americans can choose their current income tax rate. The new flat tax would preserve mortgage interest, charitable, state and local tax exemptions for families making under half a million dollars a year. That's a lot of us.

It will increase the standard deduction to $12,500 for individuals and independents. It abolishes the death tax. And for the corporate tax rate he wants to drop it, the top rate, from 35 percent down to 20 percent.

As you mentioned, he's making an announcement in South Carolina, of course, an important state politically, it's the first southern state to vote in the primary and caucus calendar -- Kyra.

PHILLIPS: All right. Paul, thanks so much.

All right, let's go a little -- dig a little deeper into that and talk more about what the plan would mean for you and me.

Jeanne Sahadi is a senior writer at CNNMoney.com.

So Jean, let's talk about first of all who gains and loses the most from a flat tax?

JEANNE SAHADI, CNNMONEY.COM SENIOR WRITER: Well, everything depends on the plan's details but typically the wealthy do better under a flat tax and the lowest income people do not. They do worse than the current system. Nobody knows yet who's going to do better or worse under Perry's plan because we only have frankly scant details and it's because he's left in a number of key deductions like the mortgage interest deduction.

That's going to make it maybe a little bit harder for people to choose between the two. You know the plan has a very low rate, and 20 percent is low, but other plans have come out with a 17 percent rate, 18 percent rate, that will make a big difference in people's calculations as to which is better for them.

PHILLIPS: Well, can we calculate what the overall effect would be on the economy?

SAHADI: Yes -- no. But here's the promise. It will -- it will help economic growth. That's true for any tax reform plan. That's always going to be the promise. But the reality is, once the thing gets into place, there's going to be a lot of transition costs from the current system to the new system. So the revenue that might be lost under those transition costs could negate, at least in the near term, the economic growth benefits.

It's also not clear how much disruption there might be economically. So if he's taking away a number of corporate tax breaks, well, he's making it much easier for businesses to file their taxes. You know, there may be some negative feedback in terms, again, of the transition cost.

But most people -- tax experts will always say you can never say with any certainly how much growth will transpire under any reform plan.

PHILLIPS: All right. Jeanne, thanks so much.

At the bottom of the hour, we're going to hear from former Congressman Dick Armey, the leader of the Tea Party. He sees a lot of good in the plan but also has some pretty strong doubts. He's going to share his thoughts with me 9:30 Eastern Time.

All right, take a look around your neighborhood. On average, nearly one in every four homes is under water. That means your neighbor or maybe even you owes more than the home is worth. So the White House is throwing a lifeline, expanding a program that allows underwater homeowners to refinance.

Alison Kosik joining us now.

Alison, critics say it ignores the Americans who really need the help the most. Let's talk about that first and then talk about how this plan, the administration hopes will help the housing market.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: OK, you got it, Kyra. So yes. So this was announced yesterday and now, of course, everybody has had a chance to sit on it and look it over and now the critics are coming out of the woodwork. So what the critics are saying is that this plan really doesn't help people who've fallen behind on their mortgage payments because you have to be up to date on your mortgage to actually qualify for this new plan.

Also, it doesn't help people who are already in the foreclosure process and, I'll tell you what, there are a lot of those. Moody's says there are 3.5 million people in foreclosure or seriously delinquent and those people are most in danger of losing their homes, but the thing is, they do not qualify for this program -- Kyra.

PHILLIPS: OK. Alison Kosik, we'll talk more about this through the next couple of hours. And stay with us, in just about an hour from now, we're going to talk with HUD's secretary Shaun Donovan about the program and the pitfalls. He's joining me live here in studio at 10:15 Eastern Time.

Well, a glimmer of hope today in the search for survivors from that massive earthquake in eastern Turkey. Rescuers pulled a 2-week- old baby girl alive from the rubble. They have been trying to reach other members of her family now.

Our Diana Magnay covering the rescue efforts there in Turkey.

Diana, we've gotten word about other rescues. Meanwhile still trying to digest those incredible pictures of those rescue workers holding that little baby girl.

DIANA MAGNAY, CNN INTERNATIONAL CORRESPONDENT: Incredible, Kyra. But just in the last 15 minutes here, we've seen two more incredible scenes where that little baby girl's mother and her grandmother were both pulled out of the rubble. Pulled out of that hole that our camera is trained on now. And they were really a fantastic scene. The rescue workers are all a bunch of heroes. And in fact I'm going to ask her to point the camera to this gentleman Kadir Ferik (ph) who's over there.

He is the man who brought the little baby girl out to safety. And the story is incredible. We talked to him a little earlier in Turkish about how he did that. And basically what happened is that the three women -- well, the two women and the little baby girl were all together in a space inside the rubble and they've managed to carve out a very narrow corridor to get to them.

And because he is a slight man, he was asked to try and crawl in and take the baby from the mother's arms. And he said he has a little son himself. He said that the moment when he took the baby outside was literally for him like having a second child. And really extremely emotional moment.

And he's spent 12 years working on earthquake sites like this and he said he's never, ever pulled anyone alive out of the rubble before. But as I said, after that, about an hour and a half after the little girl was brought out, the mother and the grandmother, all three of them are said to be in good health. All three, the mother and the grandmother on their way to the hospital right now. The little baby girl in the hospital right now -- Kyra.

PHILLIPS: It's an absolutely remarkable story. And the fact that it was captured there, not only in the photos, but in video. It's just a reminder of why it's so important to never stop giving up and looking for these people.

Diana, thank you so much.

Well, the body of Moammar Gadhafi was buried at dawn today in a secret location. Gadhafi's body had been on public display for five days since his killing. Members of Gadhafi's tribe were allowed to pray over his body before a convoy took it away for burial.

Well, they won the revolution, but can they create a democracy? We're going in depth on Tunisia and the first elections of the Arab Spring.

Our Zain Verjee joining us from London.

Zain, international observers calling this election remarkably free and fair.

ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: Exactly. Which is incredible for Tunisia, as well as the entire region that is watching so closely and so carefully to see what exactly is the next chapter after the former leader Zine El Abidine Ben Ali left.

Let's take a look at the international headlines and see what they're saying. "Gulf News" says this, Kyra. "Tunisia blazes historic election trail." It goes on to say, "Let other nations who have followed the path taken by Tunisia watch and take heed. And in the coming months, let the leaders of the Arab Spring uprisings take note that building inclusive institutions requires time and thought."

Take a look at "The Independent," Kyra, "Tunisia and Libya, two faces of the Arab Spring." It says, "As the first country of the Arab Spring to hold a successful election, Tunisia is a pioneer. What has happened so far is promising, but it is only a start."

There has been a strong showing at these elections from the Islamist party. Many around the world, in the region, as well as in Tunisia itself, Kyra, are really concerned about this because they're saying if the Islamists take over and start running the country, what happens to liberal, modern democratic values? What the Islamists and other analysts have said is that Islam and democracy can successfully coexist but Tunisia is going to be an example to see what works and what doesn't -- Kyra.

PHILLIPS: We'll follow it, Zain. Thanks so much.

And coming up, a serial -- suspected serial rapist in Texas targeting sorority women. We're live at the latest on the search.

Plus Oakland Police put on their riot gear and make their move in the middle of the night. "Occupy Oakland's" Tent City is gone and protesters are in custody.

(COMMERCIAL BREAK)

PHILLIPS: Quick look now at news from across the country. An oil rig fire burning in Texas could still be burning days from now. It exploded Sunday just outside of Austin. No one was hurt. Firefighters think it could take up to a week to put it out.

And overnight, police have broken up "Occupy Oakland's" Tent City and arrested protesters. More than 300 people had been camping in a downtown plaza for weeks to support the "Occupy Wall Street" movement. The mayor claimed the plaza isn't safe.

Atlanta Police might get the same order soon. The mayor thinks that two weeks in a downtown park is enough. He's about to revoke an order to let protesters stay longer.

And the names of the jurors in Casey Anthony's trial are now public. In July they found Anthony not guilty of murdering her daughter. A judge thought a three-month cooling off period was needed after the verdict to protect the jury's safety.

And an intense search is underway in Texas for a suspected serial rapist who has attacked at least four members of a black sorority. Police say the suspect broke into the woman's home -- the women's homes, rather, and made it obvious that he knew personal information about them.

Ed Lavandera is in our Dallas bureau.

Ed, so how exactly did the police put all these pieces together for this case?

ED LAVANDERA, CNN CORRESPONDENT: Well, you know, this has actually been rather interesting how all of this came out. The four attacks happened in three different suburbs north of the Dallas area and they've all taken place within the last year or so.

And as each of these cases emerged as investigators learned more and more about them, they realized they were dealing with a small sample size. And when all four victims turned out to be members of the Delta Sigma Theta sorority, this is when authorities started coming together last week and then they've kind of compared notes and realized that they're probably suspecting that they're dealing with the same attacker in this place.

In fact, just a few days ago, they released this surveillance video. They're not saying where it comes from but they say they believe this is their suspect in the case, which is a man believed to be in his late 30s to mid-40s, about 5'7" to 6 feet tall, a large man.

And the way he walks in this video, they're hoping that this clues other people who might have seen him around sorority events or anything like this. That this might help them figure out who this person is. They're not saying where this video came from or why they believe this person is the suspect.

But as you mentioned, Kyra, during these attacks, the police said the attacker made it clear that he knew details about them, even though they had no idea who this man was. And authorities have been saying that this man has been doing his work, actually staking out these women and perhaps planning his attacks.

(BEGIN VIDEO CLIP)

CAPT. GREG WILKERSOIN, CORINTH POLICE: We feel not only is he doing his research, you know, he's possibly conducting surveillance. So, he's, you know, spending some time around the area, around the residences prior to the attacks.

(END VIDEO CLIP)

LAVANDERA: So, authorities are really counting on this video, Kyra, to hopefully kind of trigger people's memories about whether or not they've seen him around sorority events over the course of the last year. They're trying to figure out exactly how he's figured out who these people are and how he's planned his attacks.

PHILLIPS: What is the sorority leadership saying about this and how are they talking with the girls on how to protect them selves?

LAVANDERA: Well, as you can imagine, this has sent a great deal of fear through, especially the local chapter of the Delta Sigma Theta sorority here in the Dallas-Fort Worth area. And what's interesting is we tried to reach some of the local members and we've seen e-mails that have gone out to sorority members and essentially the national leadership, which is based in Washington, D.C., really taking the public lead on this and making all the comments.

And, basically, what they're urging people and what authorities are urging these sorority members as well, if you've got a placard on your license plate, if you've got T-shirts, all of that, takes, you know, it down. Don't advertise that you're a member of this sorority. And they're urging people to stay off of Facebook, Twitter, any kind of the social networking that might advertise that you've gone to some of these functions.

You know, a lot of these sororities and a lot of these groups put pictures of their events on Facebook, what have you. They don't really know how this man is researching these women and figuring out how to attack them.

PHILLIPS: You've got to be so careful with what you put on the Internet nowadays. Ed Lavandera -- Ed, thanks.

Still ahead, another blow to Netflix after a P.R. nightmare -- 800,000 customers are canceling their subscriptions. And Netflix shares are tumbling.

We'll go to the New York Stock Exchange for an update.

Also, he's 100 years old and he ran a marathon, 26.2 miles. You think he's going in the Guinness Book of Records? Not going to happen. Our Zain Verjee joins us to explain why in four minutes.

(COMMERCIAL BREAK)

PHILLIPS: Let's get to your "Showbiz Headlines."

Boston natives Matt Damon and Ben Affleck plan to partner up again for a film based on the life of Irish crime boss Whitey Bulger. Damon would play the Boston gangster in the movie. Affleck will direct the project and take on the smaller on screen role.

And TMZ has confirmed that Lindsay Lohan is shooting nude photos for "Playboy." The actress reportedly asked for $1 million to pose, but sources say Lohan was offered $750,000 for the spread.

And usually, the judges talk and the dancers listen, but Monday night on "Dancing with the Stars" that wasn't the case when Hope Solo's partner took issue with the judges about their performance.

(BEGIN VIDEO CLIP)

LEN GOODMAN, JUDGE, "DANCING WITH THE STARS": I've been in this business for nearly 50 years.

MAKSIM CHMERKOVSKIY, DANCER: Maybe it's time to get out.

UNIDENTIFIED FEMALE: Don't be disrespectful like that.

CHMERKOVSKIY: It's not disrespectful to everybody, right, because everybody is putting a lot of effort. Everybody on that balcony has been dying and killing themselves only to hear your guys a little judgmental --

(END VIDEO CLIP)

PHILLIPS: The judge's decision still stands. The score for Solo and her partner's rendition of "Season of Love" from Rent was only 20 out of 30.

Well, he's 100-year-old and he claims to be the oldest runner to finish a marathon. Sounds record-worthy, right?

Well, a Guinness Book of World Records says, nope, you got to prove it.

Zain Verjee is joining us from London.

Zain, why is Guinness saying no?

ZAIN VERJEE, CNN CORRESPONDENT: Oh, Kyra, poor Turban Tornado and his sheikh in the city t-shirt, it ain't going to happen. Well, Guinness is saying that the proof that he's provided just isn't good enough to say that he is, in fact, 100 years old. What they're saying is they need to see an official birth certificate.

Here's the statement from Guinness. It says, "As much as we'd like to ratify this record, we simply don't have the proof. The claim will remain open until such evidence is provided. Until then, we wish Mr. Singh all the best with his next challenge."

Now, Kyra, what he did was he gave a passport and the date of birth says April 1st, 1911. But Guinness says that's only proof of nationality.

He also submitted a letter from the queen of England himself congratulating him for his age. Guinness said, not good enough.

Then the government of India came out with a statement and said, look, no records of birth or any official birth certificates were kept in the year 1911.

A neighbor also came out, a former neighbor from India came out and said, yes, this guy is 100 years old. But Guinness is saying it's not going to happen.

One official said, "If you can't prove how old you are, you can't be the world's oldest anything" -- Kyra.

PHILLIPS: So, what is he going to do? I mean, he has so much support and people rallying against him. I mean, come on. Take a look at the guy. He's 100 years old.

(LAUGHTER)

VERJEE: I know! You know, he's been so inspirational, so incredible in what he's doing. He doesn't speak English. So, he actually hasn't been able to respond. His trainer is actually responding to all of this and he said, you know, in developing countries, the standards of keeping records aren't really up to scratch as are in the West.

But, you know, he really has gained a major following, and he does hold a few other records in Britain and other places, for the 100 meters, the 200 meters, 1,500 meter races. So, you know, he's got a few notches there on his belt. But Guinness just aren't putting them in their history books.

PHILLIPS: Boy, that's a tough group of critics. We will definitely follow the Turban Tornado for sure. I know this guy is pretty special to us. Thanks, Zain.

All right. Alison Kosik is at New York Stock Exchange -- following the ongoing saga at Netflix.

The latest twist -- well, hundreds of thousands of customers are jumping ship now, Alison. And the stock price -- well, it's tumbling right there. It's jumping, as well.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: It is. And if you're a shareholder, you're definitely not laughing. But you know what this winds up being, Kyra, really these subscribers are just sending a really strong message to Netflix: get your act together.

And it shows, hey, regular people, they can speak with their actions and 800,000 customers, they did just that. During July through September, they canceled their subscriptions. Of course, this follows a pr nightmare that Netflix has endured. It announced price hikes, said it would split its DVD and streaming businesses, and then, it changed its mind.

So, yes, it really hammered Netflix's reputation. Netflix put out an apology, but it wasn't good enough.

So, yes, we have everybody defecting. It's the first time in years Netflix lost customers and here's the kicker: Netflix expects to keep losing customers. As you said, shares right now in the pre- market are down 35 percent. That's despite earnings that beat estimates.

Here's some stock -- but here's some numbers for you if you're a shareholder, Kyra.

Netflix shares hit $300 earlier this year -- expected to trade around $77 today. Ouch!

PHILLIPS: Well, what do you think, will the drop in Netflix impact the broader market?

KOSIK: You may see it in the NASDAQ a bit. As for the overall market, looking for a slightly lower open. But overall, the losses for Netflix for NASDAQ, rather, look to be limited because of some decent earnings. BP, Deutsche Bank, UBS, their shares are up on stronger than expected earnings.

But we did get earnings from 3M -- shares of 3M are expected to tumble. Their earnings disappointed the street.

Also, we got a new report showing home prices are improving a little bit. So, with all of that kind of mixed bag of news, expect stocks to open just slightly lower -- Kyra.

PHILLIPS: All right. Alison, thanks.

Well, Rick Perry's flat tax plan doesn't have a catchy name like 9-9-9. But is it enough to get Dick Armey's blessing? We'll ask Mr. Tea Party himself, former congressman Dick Armey, next.

And nature at its best. The northern lights showing up in the Deep South. We'll show you some more of this spectacular light show, just ahead.

(COMMERCIAL BREAK)

PHILLIPS: Checking top stories now.

Moammar Gadhafi's body buried at dawn today in a secret location. Libya's new leaders say that members of Gadhafi's tribe were allowed to pray over the body before it was taken away.

And rescuers have pulled a 14-day-old baby alive from the earthquake rubble in eastern Turkey. Take a look at these pictures. Crews also rescued the baby's mom, grandfather, but the death toll has risen to 366 with more than 2,200 buildings destroyed. The search still continuing for this little baby's father.

And Hurricane Rina strengthened into Category 2 storm. Forecasters say it could make landfall on Mexico's Yucatan Peninsula on Thursday.

All right, about 90 minutes from now, Texas governor Rick Perry will unveil his economic growth plan, and it includes an optional flat tax. We want to talk more about this with Dick Armey. He's a former congressman and head of the fiscally conservative Freedom Works group and a flat tax supporter. Dick, good to se you.

DICK ARMEY, PRESIDENT, FREEDOM WORKS: Nice to be with you.

PHILLIPS: All right, well, we have, we have Herman Cain's 9-9-9 plan and now he's saying 9-0-9 for some folks, so that's changing. You have Rick Perry talking about an optional 20 percent flat tax and Newt Gingrich now talking about an optional 15 percent flat tax. So, who do you think, right now, has the better plan?

ARMEY: Well, actually, I would have preferred the plan that was written by Holland Rebushka (ph) in 1984, even the one I introduced in 1994.

But at this point, I think the governor's plan is a very bold plan by way of comparison with anything else that's out there, and I think it is possible that it could achieve the growth of the American economy and the job creation that would follow that growth.

So, right now, I think that's the best plan standing. No doubt in my mind that this is the best single policy option available to the government to inspire growth of the American economy. And Rick Perry's gotten pretty close to the mark.

PHILLIPS: Sounds like you're ready to endorse Rick Perry. Are you endorsing Rick Perry right here at 9:32 Eastern time?

ARMEY: Oh, no, no, no. The problem with these politicians is they say insincere things quite a bit. And what we're looking for with Rick Perry, or anybody else for that matter, is we want to see a real commitment to the policy as a policy for America that you will see through in your presidency, not be left with a fear that is just something that you want to use long enough to win the campaign.

And, quite frankly, we put a rigorous test of long-term commitment to any policy options that are offered by candidates and if they can meet that test and they can convince us they really, really mean it and intellectually and policy-wise committed to it, then they could possibly win the endorsement and the support of all of the grassroots activists that are out there.

PHILLIPS: All right, well, then by making that point, let me ask you this. Who is off your list? Who do you know you will not endorse?

ARMEY: Well, I don't know that there's anybody that we have really taken off the list. We really think this campaign can be a long-term or fairly long process, and everybody has the chance to rise to the occasion, so we leave the options open.

Our point is endorsements are not gifts to be given, they're prizes to be earned. And we're really looking for the candidates to get out there and show some real commitment that we dare to believe we can rely on.

The problem with politicians is that you can't always rely on them to be who they said they were going to be when they get in the office.

PHILLIPS: So, we made the point -- I think everybody probably in America would agree that there are definitely more politicians that are more disingenuous than others.

But let me -- let me try it this way, Perry, Bachmann, Romney, Cain. All right, give me a pro and con. I want you to hit all four with me really quickly, Dick. Let's start with Rick Perry, give me a pro and a con.

ARMEY: Well, at this point, Rick Perry is the fellow who is most clearly advocating those policies that would be best for growth and prosperity and job creation in America, especially if he sticks to his guns to give us a flat tax and to couple that with cutting the size of government.

Our problem with Mitt Romney is he seems to be on again, off again. And, at this point, he's been very timid on anything that we believe would inspire real growth to the economy.

We like Cain an awful lot, but our problem with that is the coupling of a flatter income tax with the introduction of a sales tax. I had been warning people who advocate the sales tax for years that you'll never get it. Instead of the income tax, you might get it in addition to. Now we see that coming with Herman Cain.

The other candidates out there --

PHILLIPS: Bachmann. Give me something on Bachmann, Dick.

ARMEY: Well, her campaign seems to be a atrophying quite a bit. I don't know whether there are organizational problems or what. But at this point, it just seems to me that she's running so far behind, it'd be hard to believe she could ever catch up.

PHILLIPS: All right, Dick, you know me, I am hearing Perry and I'm hearing Cain. I hear Cain you like a lot; Perry seems to be the most clear. Let's pare it down to Perry and Cain. What is it that you need to see from Cain to rise to such a well-described Rick Perry in your eyes?

ARMEY: Well, in my estimation, somebody gave Cain the wrong advice on tax policy. The tax policy doesn't have the growth potential for the economy, the job creation potential that he suggests it will have. Further complicates the tax code in such as to way to give future generations of politicians, if it were enacted, two tracks on which they could raise tracks - taxes.

And sales taxes are the most dysfunctional taxes at the federal level that you can think of. You would see the growth in the underground economy and a frustration that could, as it did in Europe, lead to a value added tax.

So, I think he's fooling with a fairly dangerous idea when he introduces sales tax. Even at the nine percent level.

PHILLIPS: All right, final question. Who is better to -- I guess, who is better suited right now to beat President Barack Obama? Rick Perry, Herman Cain?

ARMEY: Well, I really think it's Rick Perry because he's drawing such a sharp contrast between himself and Barack Obama. If you look at the flat tax, which basically says we'll treat everybody exactly the same as everybody else, you have the best definition of fairness. And that is a sharp contrast with class conflict.

So, the fact of the matter is, I believe at this point, Perry stands as the greater contrast with the better ideas for growth in the economy and, therefore, would have the better chance of beating the current president, who just seems to be stuck in the doldrums of his undergraduate sociology courses.

PHILLIPS: Dick Armey, seems like leaving politics has done you well. I appreciate the interview this morning. Thanks, Dick.

ARMEY: Well, thank you for having me.

PHILLIPS: You bet.

Well, as you can hear, Governor Perry will unveil his plan right here on CNN, 11:00 a.m. Eastern time. We will take that live.

So, what do you do for a living? seems like a pretty straight forward question, right? Well, L.Z. Granderson is going to tell us why it's not. His op-ed coming up.

(COMMERCIAL BREAK)

PHILLIPS: So, what do you do? Pretty common question, right? Well, and a loaded one according to L.Z. Granderson. That's the focus of his latest op-ed on CNN.com.

All right, now, L.Z., people asked this question for years and years and years. Why all of a sudden are you having a problem with it now and it bothers you so much?

LZ GRANDERSON, CNN.COM CONTRIBUTER: It's not all of a sudden. I think it's something progressively happening in terms of, I travel a lot for work, obviously. And I get asked that question a lot. And it just seems that inevitably what it does, it trumps the conversation of how much money you're making, what kind of things you have. Consumerism, basically. And it becomes less and less about engaging each other in terms of what kind of person you are and more about a contest about how much stuff you accumulated so far.

PHILLIPS: All right. So, you're telling me when you're at a cocktail party and you're schmoozing and you know that you're with some pretty important people, you're not standing there wondering, hmm, wonder what that person does?

GRANDERSON: Well, yes. Because I, too, am part of this culture. I'm not trying to pretend like I'm from on high. I'm part of this culture, too.

And my point is that we are getting such - we're getting to the point now because the economy is so shaky that so much of our value as a person or so much that we value the other people is so tied to consumerism and money that as the economy gets more shaky, our view of other people get shakier. So, I'm hoping this column reminds people to look at the person and not just the stuff.

PHILLIPS: Our L.Z., who just got back from his mission trip and also read "Eat, Pray, Love," joining us to talk about his latest column -

(LAUGHTER)

PHILLIPS: I'm kidding. L.Z., I love you.

GRANDERSON: I'm keeping you for that (ph).

PHILLIPS: You can read L.Z.'s piece -- whatever happened to "what's your sign?". Where did that go? CNN.com/opinion. If you like, you can join the conversation and leave a comment for him.

Well, they're called the Northern Lights, but these dancing lights made an appearance in the Deep South and after the break, meteorologist Jacqui Jeras, who is totally fascinated by this - I can even see her over there flipping through al the pictures and smiling. She will join us to talk about it, next.

(COMMERCIAL BREAK)

PHILLIPS,: All right. Let's check the news cross country now.

An American researcher who suffered a stroke while posted at the South Pole is back on U.S. soil. She was struck on Antarctica or stuck rather on Antarctica for two months because conditions were too bad for a rescue flight. Well, she's being treated this week at John Hopkins in Baltimore.

And a tattoo marathon keeps artists pretty busy and raises money for cancer research. A Michigan tattoo parlor inked 271 pink ribbons in honor of breast cancer awareness month. So many folks came out they actually had to end the event early.

And a Maine man has just logged one million miles on his car. The 1990 Honda Accord still has most of its original parts. He drives it around the state for work about 14,000 miles a month.

But what a treat for the Deep South; the brilliant light show known as the Northern Lights, normally seen in the far north, but folks as far as south or as far as south as Alabama, Georgia, well, they got treated, as well.

Jacqui Jeras here to first, I guess, let's explain the Northern Lights, shall we?

JACQUI JERAS, AMS METEOROLOGIST: Yes, the aurora borealis.

Say it with me Kyra, she said she can't say.

PHILLIPS: I can't say it really fast.

JERAS: Yes.

PHILLIPS: But Aurora, your daughter's name.

JERAS: Yes.

PHILLIPS: Of course leave it to the meteorologist to name her daughter Aurora; and it's because of these beautiful pictures.

JERAS: Yes after this. It really -- you know it means "Goddess of the Dawn", actually. And it really is one of the most beautiful things you've ever seen. Take a look at those curtains of light. It's just a spectacular show.

It's not something that you get to see every day. The timing has to be right from the time that this electromagnetic energy comes in that it has to be dark out. There's about a 40-hour difference between the time that this energy shoots out of the sun and makes it into the earth's atmosphere.

We call this -- we'll get a little technical for just a quick second. It's called the CME or a Coronal Mass Ejection and basically it's just a bunch of solar wind plasma that shoots towards the earth and gets caught into our electric magnetic field and all these charged particles collide with each other.

PHILLIPS: I was reading all the different names through the years. I like "Dance of the Spirits". That's what they called it in Europe.

JERAS: Right. The Native Americans thought it was the spirits of some of the animals that they hunted and killed. There are a bunch of different theories about it as well.

Now, the color is what a lot of people have been asking about. What determines the different colors? It has to do with the gas particles that it collides with. So the color green, you see a lot of green in there, that's lower in the atmosphere, around 60 miles up and it's oxygen. The blue and purple that you see in there, that's collision with nitrogen. And then the red, which is a lot more red -- rare and we saw a lot of this red time around; it's high altitude oxygen. That's up there, 200 miles above the earth's surface. Isn't it gorgeous?

PHILLIPS: Well, it's beautiful. It is.

JERAS: I love it. I could look at it all day.

PHILLIPS: Thanks Jacqui. I bet Aurora would like to shout out too. She's probably watching. You'll have to tell her all about her Northern Lights when you get home.

JERAS: Yes.

PHILLIPS: Thanks, Jacqui.

Well, the Texas Rangers count on their catcher again, as they take Game five of the World Series. We'll have the highlights just ahead in sports.

(COMMERCIAL BREAK)

PHILLIPS: And a look at stories making news later today.

President Obama is in Los Angeles. And at 1:30 Eastern he's going tape an appearance on the "Tonight Show with Jay Leno".

At 3:00 Eastern, Newt Gingrich files his papers to be on the ballot for New Hampshire's primary.

And at 7:00 in Toledo, Ohio, "Joe the Plumber" officially announces his bid for a congressional seat. Samuel Joseph Wurzelbacher was catapulted to fame when met candidate Barack Obama and questioned his tax policies.

We're following lots of developments in the next hour of the CNN NEWSROOM. Let's go and check in first with our Jim Acosta, he's in South Carolina. Hey, Jim.

JIM ACOSTA, CNN POLITICAL CORRESPONDENT: That's right, Kyra. We're in Gray Court, South Carolina where Texas Governor Rick Perry will announce his new economic plan. It's called "Cut, Balance and Grow". And Perry hopes it will grow his poll numbers. I'll have some details in just a few moments.

(AUDIO GAP)

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: I'm Elizabeth Cohen in Atlanta. The HPV shot for girls has been plenty controversial, well now the Centers for Disease Control will consider whether boys should have to get it too. I'll have that at the top of the hour.

PHILLIPS: Thanks guys and I apologize for the audio problem there with Dan Rivers. He'll be talking about the burial of Moammar Gadhafi.

Also next hour a lot of people write the President every day, some even get an answer back. And we'll talk to one of them.

And the author of a new book "Ten Letters". The stories Americans tell their President.

(COMMERCIAL BREAK)

PHILLIPS: The Texas Rangers, one win away from winning the World Series.

JEFF FISCHEL, ANCHOR, HLN SPORTS: Yes, they are. You know Texas really came back they were down two games to one. They got tied at two. Last night that critical game Five. St. Louis grabbing the early lead, it would not last.

Let's pick things up in the bottom of the sixth, the Cardinal's pitcher Chris Carpenter pitching to Adrian Beltre the Rangers slugger goes down on one knee to propose. Will you fly far, far away? The home run that ties it at two.

Then in the eighth, the Rangers Mike Napoli has been clutch this post season. He does it again the double off the right-field wall; that brings home two. Texas is up 4-2. That's nine RBIs for Napoli in the series. He's been huge in the playoffs and in the field in the ninth inning Rangers closer Neftali Feliz, the strikeout -- and look at Napoli. Guns down Allen Craig trying to steal to end the game.

The Rangers win game six, weather-permitting, tomorrow night in St. Louis.

NFL Monday night football, Jaguars and Ravens. It wasn't pretty if you like seeing points on the board. This was the only touchdown in the fourth quarter. The Ravens quarterback Joe Flacco to Anquan Bolden that makes it 9-7, Jags.

Baltimore tries to get the onside kick going, that doesn't quite work. Jacksonville gets it. Josh Scoba, a 51-yard field goal his third 50 yarder of the game that ties an NFL record. But you know you're in trouble when field goals are the most exciting part of the game. Jags wins 12-7.

A college student's prank has some very serious repercussions. He ran on the field in last week Arizona/UCLA game dressed as a referee before stripping down. Now, he's been charged with criminal impersonation, that's a felony. We're laughing but if he's found guilty he could face 18 months in jail. You would think he would start to regret it but he still says no. Ok.

PHILLIPS: Oh, we are not going to hear from him? Ok.

FISCHEL: The "New York Daily News" is reporting the NBA will cancel two more weeks of the season today. That would kill games through November 28th. No new talks are scheduled between players and owners. NBA stars are appearing in a new commercial called "love the game no matter what." The players are hooping up at Rex Centers, Youth Leagues pickup games. Here's hoping they'll actually play in a real game by Christmas.

PHILLIPS: I like that they are doing good things with the kids, that's great.

FISCHEL: That's right. PHILLIPS: All right. Jeff, thanks.

Well, it's a bedtime story for a 2-year-old that's melting hearts. CNN's Jeanne Moos reports on a pre-recorded daddy who even managed to hand out a few cyber hugs.

(BEGIN VIDEO CLIP)

JEANNE MOOS, CNN CORRESPONDENT: It is like reading a bedtime story.

UNIDENTIFIED MALE: Farmer Mickey wakes at dawn. Time to work the whole day long.

MOOS: Only daddy seems to live inside a screen.

UNIDENTIFIED MALE: The hens lay the eggs. The cows munch hay.

MOOS: The wife of an airman away from home for basic training posted this video of her pre-recorded husband reading to his 2-year- old daughter that has everybody talking about how cute it is. The only one who isn't talking is dad.

UNIDENTIFIED FEMALE: Daddy? Daddy?

MOOS: She was trying to say silly kitty because mom tells CNN the cat just knocked something off a shelf. Someone posted that dad better get back home soon or that kid is going to be nearsighted. The adorability factor goes through the roof as the bedtime story ends.

UNIDENTIFIED MALE: Can I have a hug?

MOOS: Talk about a screen grab. Every time her daughter asks to see daddy mom would play one of several pre-recorded videos.

This is similar to the United through Reading Program. Parents separated from their children, especially military parents, record themselves reading aloud and send DVDs home to the kids.

UNIDENTIFIED MALE: What sound does a lion make? Roar.

MOOS: Now pre-recorded storytelling is not as high-tech as a soldier watching the birth of his first child live via Skype.

UNIDENTIFIED FEMALE: Okay, babe, let's go.

MOOS: Since Army Corporal Greg Bacon was in Iraq when his son was born, Skype was the next best thing to being there.

UNIDENTIFIED FEMALE: I'm just a little scared.

ARMY CORPORAL GREG BACON: I know, honey, just keep talking to me. Hang on.

UNIDENTIFIED FEMALE: Just a moment.

BACON: Hang on honey. Hang on.

UNIDENTIFIED FEMALE: Lots of pressure. Lots of pressure. It is going to feel really funny.

UNIDENTIFIED FEMALE: Hi Daddy. Do you see him?

UNIDENTIFIED MALE: I can see him.

BACON: He finally saw him in person three months later.

BACON: Hey, buddy.

MOOS: You may think of cyberspace as cold, but this inspired us -- to have a group hug.

Thank you.

Jeanne Moos, CNN --

UNIDENTIFIED FEMALE: Bye-bye.

MOOS: New York.

(END VIDEOTAPE)