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Reid, Boehner, Promise a Clean Bill; GOP Slams Obamacare; Ads Coming to Instagram; Open Mic Catches Shutdown "Strategy"

Aired October 04, 2013 - 09:30   ET

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

(BEGIN VIDEOTAPE)

SEN. HARRY REID (D), MAJORITY LEADER: To have someone of your intelligence suggest such a thing maybe means you're irresponsible.

DANA BASH, CNN CHIEF CONGRESSIONAL CORRESPONDENT: I'm just asking a question.

REID: You know, I'm not known for being real articulate, but what I was trying to say is we can't be piecemealing all this stuff. We have Centers for Disease Control that's closed. We have thousands and thousands of women and children who are not able to get their WIC monies at $45 a month.

We have disabled veterans who are working who are not getting paid. We have half a million people at the Defense Department who are on furlough. So we have to look at everything.

BASH: Harry Reid revealed he and John Boehner struck a private deal in September to pass a funding bill with more spending cuts than Democrats wanted.

REID: So we spent some more time together and I agreed. That was really hard. My caucus really didn't like that. We took a real hit.

BASH (on camera): You're saying that he told you, he promised you in a private meeting that he would pass a clean bill with no strings attached, particularly on Obamacare?

REID: That's why we did it, that's why we agreed to that lower number. So that's one of the largest compromises since I've been in Congress. That was a big deal. $70 billion just like that.

BASH: So what --

REID: And he -- and he couldn't deliver.

BASH: So you -- are you saying that he misled you? Are you saying that he lied?

REID: I think he really intended to do that, but remember what he tried to do. To get things out of the House, what he did he had -- what he agreed with me and then he stuck on it basically repealing Obamacare. That was to get some votes from the so-called Tea Party. I was going to call them crazies, but I shouldn't do that. The speaker has to be more concerned about our country than he is about his job.

BASH: I've covered --

REID: Because why else wouldn't he do this? It's because they're afraid they'll take away his speakership.

BASH: Do you think that's what this is about? Do you think that he is simply trying to protect his job and he's brought the entire government to a screeching halt just for that reason?

REID: John Boehner knows that this would pass overwhelmingly if he would let the Democrats vote on it. And we know that he only needs 18 Republicans, and there are certainly 18 Republicans, so, yes, I think that the speaker has to be more concerned about our country than he is about his job.

BASH: You really think effectively calling him a wimp is going to make him change his mind?

REID: I haven't called him a wimp.

BASH: Well, you said he didn't -- he doesn't have courage. You're right. That's my word, not yours, but you say he doesn't have courage. I mean that's pretty tough.

REID: Well, I don't know how to describe it.

BASH: You know in your heart of hearts that now that John Boehner is down this road, he accepted the idea that Obamacare should be attached to any kind of spending bill, the government is shut down, he's so far in. He needs something. He needs a lifeline in order to save face, in order to agree. You're not giving him one inch.

REID: How about my lifeline? We agreed to $980 billion, $70 billion less than what my caucus voted for and agreed to. Don't talk about his lifeline. Talk about mine.

BASH: You have used some pretty explosive terms to talk about the so- called Tea Party. You've called them Tea Party anarchists, you've called them whacky, you called them the weird caucus. I've even talked to some liberals who are big supports of yours who say, you know what, that's going too far.

Are you sort of stirring the pot with language like that?

REID: OK, anarchist. Why in the world wouldn't I use the term anarchy? That's what they are, they're anarchists. They don't believe in government on any level. What else did I call them?

BASH: The weird caucus.

REID: Well, that's probably a little over the hill.

(LAUGHTER) BASH: So, I mean, do you think -- are you pledging to tone down the rhetoric a little bit? Maybe that could help.

REID: I'm not going to give up on anarchists. I mean, I -- their people are writing columns about this. About -- because that's what it is. They don't believe in government, that's why they want the government closed. This is not Pitter Pat, see how nice you can be to everybody. You have to explain what you're trying to say.

(END VIDEOTAPE)

FREDRICKA WHITFIELD, CNN ANCHOR: And that was chief congressional correspondent Dana Bash reporting.

So Healthcare.gov still facing some glitches and needing overnight maintenance on its fourth day of operation. Experts say the glitches might not be ironed out until Thanksgiving. States like California are also having major backups and delays. California has the most uninsured people of any state, nearly seven million.

Earlier this week, we spoke to Terry O'Neal from Sacramento. She is a self-employed married mother of three seeking health insurance. Well, she tried applying online Tuesday and when that didn't work she called and applied by phone.

(BEGIN VIDEO CLIP)

TERRY ANNE O'NEAL, APPLIED FIRST DAY HEALTH CARE EXCHANGES OPENED: Going years without health care, three hours a week, you know, I mean, it's worth a try. It's worth my effort, for me and my kids. So yes, it is. I mean, it's frustrating, but, you know, it's -- millions of people, you know, were online, so I mean it's -- I mean, I think, I expected it. I guess I expected it so I wasn't too disappointed.

(END VIDEO CLIP)

WHITFIELD: So Terry told CNN that she is still waiting to learn if she will indeed qualify. The glitches are adding fuel to the fire for the GOP against Obamacare, health care.

Let's bring in Republican Congressman Michael Burgess of Texas. He's also a medical doctor.

Good morning to you.

REP. MICHAEL BURGESS (R), TEXAS: Good morning. Thanks for having me on.

WHITFIELD: Are you still convinced the Affordable Health Care Law is a bad thing and if so, then why are so many people jamming the Web sites to get more information, to find out if they qualify for this care?

BURGESS: I think if you subtract out members of Congress and their staff and reporters who called in those first 48 hours the numbers will be considerably lower, look we will have an opportunity to dissect these numbers in our subcommittee of oversight investigations later this month or next month.

WHITFIELD: But you don't know that. You don't know that, though.

BURGESS: No, we don't.

WHITFIELD: You don't know all of those people that are participating --

BURGESS: What we do -- can I --

WHITFIELD: -- who are trying to get online --

BURGESS: May I speak for a moment?

WHITFIELD: And you're saying that the majority of people trying to get on line are media people and members of Congress?

BURGESS: Well, what we do know is that when Part D opened there was similar difficulties. We also know that they got on top of it pretty quickly. My question to people from federal agencies who would come to our committee before this started, what did you do to be ready, what have you done with your so-called federal hub, the computer hug. What have you done with the interfaces, we couldn't get any answers. They wouldn't show us their testing.

After the fact now they're going to get to share that with us. But if you knew this was going to be the first chance to, you know, the first opinion is going to be an important one, why wouldn't you move heaven and earth to make sure those first 48 hours were as flawless as they could.

WHITFIELD: Wait a minute. But Americans are asking why wouldn't Congress move heaven and earth to keep government going and then find out whether this health care works or not? Why then go the other way around, try to dismantle health care for the sacrifice of the government?

BURGESS: Look at the congressional activity on the House side of the two weeks leading up to September 30th. Yes, we passed a bill that took funding away from the Affordable Care Act. After a week, Harry Reid said no, not going to do it. We passed another bill said let's give people a break on the individual mandate, just like you gave the employers. Harry Reid said no, not going to do it.

We said let's just delay that for a year, not going to do it. The final offer was let's just go to conference and talk about it and they wouldn't do that. The other part was let's make it fair for everyone. Members of congress, administration, heads of federal agencies, let's put everybody in the Affordable Care Act if it's such a great deal everyone should get to experience it.

WHITFIELD: So at this point --

BURGESS: They wouldn't do that.

WHITFIELD: So at his point I mean but it's very productive to look back. At this point people want members of Congress to look forward and --

BURGESS: And we are.

WHITFIELD: If you look forward now.

BURGESS: And we are.

WHITFIELD: -- government is shutdown, it doesn't seem as though this was that it's In the shutdown, does it seem as though this was the payoff it's worth having shut down government for the sake of seeing whether or not health care is working. Because very few Congress members are talking about the debt ceiling, very few are talking about money and budget.

BURGESS: I disagree with you.

BASH: We're talking in large part about health care.

BURGESS: I disagree with you about that. But in fact last night it was rules committee, late. We passed rules to allow 11 appropriations bills to come to the floor this weekend and indeed that appropriations work will be done. It's important work. I hope the Senate will pay attention to what's going on.

Sure, everyone is concerned about the debt ceiling because that's really what's underlying all of this. When the president raised his hand and took the oath of office last January the national debt was a little over $16 trillion, it's over $17 trillion a day.

By the time the successor to President Obama is sworn in, whoever he or she may be, or whatever party, the national debt is going to stand at about $21 trillion dollars. It's rapidly becoming unsustainable and that is the crisis that is likely to consume us all. And that needs to be fixed.

WHITFIELD: Are you concerned -- are you concerned that this government -- this country is going to default for the first time ever, or do you believe in a compromise or something is going to come together so that the debt ceiling can be raised?

BURGESS: Right now I would not be optimistic about a compromise because of what I've seen coming out of the White House and the Senate. But to your point. If something is not done --

WHITFIELD: So is everybody else's wrong.

BURGESS: If something has not done about the unsustainable nature of our federal debt the country is in deep trouble anyway whether a default occurs on the 17th of October or not. Sure, I wish we'd come together, I wish we could work something else. It happened two years ago. It possibly could happen again. Our federal deficit is lower today than it was two years ago --

WHITFIELD: So the prognosis is not good.

BURGESS: -- because of the compromise -- WHITFIELD: In your view?

BURGESS: -- that was made in August 2011.

WHITFIELD: All right. Congressman and Dr. Michael Burgess. Thank you so much.

BURGESS: Thank you.

WHITFIELD: I think most people are hoping that there's going to be some light at the end of the tunnel. And hopefully the future will look hopeful for America.

BURGESS: And maybe the senate can save a light I hope so, too.

WHITFIELD: All right. Thanks so much. Appreciate your time.

BURGESS: Thank you.

WHITFIELD: All right. Still to come, let's talk about the New York City marathon, returning after last year of cancellation and security of being tighter. Details on that. Straight ahead.

(COMMERCIAL BREAK)

WHITFIELD: All right. Keeping an eye on the sky there. You're looking at Pensacola, Florida, it looks beautiful, doesn't it? But on the horizon tropical storm Karen, hopefully not hurricane Karen, we're keeping a close watch on its potential encroachment of the coast there throughout the weekend. We'll keep you posted.

Meantime other top stories we're watching for you. Pope Francis is in Italy today -- there it is -- greeting the faithful, just minutes ago. He is visiting the birth place of his namesake, St. Francis, lived in the hill town of Assisi in the 13th century. The Pope celebrated mass outside the Basilica where St. Francis is buried. He called on the faithful to respect the environment God created. He called on the faithful to respect the environment God created.

Next month's New York City marathon will have tighter security, the changes include checkpoints and bag searches near The Central Park Finish line. The safeguards come in the wake of the Boston marathon bombings. Last year's New York City marathon was canceled because of damage from Superstorm Sandy.

All right. You knew it was coming, Instagram will now have ads. The site made the announcement in a blog post but promises the ads will be beautiful, just like the photos that you're just are seeing.

Alison Kosik joining us now from New York.

Alison, well, we knew it was coming.

(CROSSTALK)

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Inevitable, right. You know, as really are the new frontier of social media sites, You know, if you want to be on this social media sites, he got to start getting used t dealing with those ads so yes, Instagram is the latest, that's photo-sharing fight, saying yesterday it's going to start displaying ads to select users over the next couple of months.

It says he's going to ease us all into week, it's going to start flow, and promises beautiful high quality photos that few natural to Instagram.

Now not such a shocker here that this is happening; Instagram's parent company Facebook it started integrating ads into news feeds just a few years ago. Now what makes this different is that Instagram is going to deliver these ads to users regardless of their interests, whereas Facebook tries to tailor them a bit more based on what you've liked or followed.

So this is important because this is really where the money is at for these social media sites. Now mobile ad revenue is big business for all these social media companies, Fredricka it makes up a huge, huge portion of their revenue -- Fredricka.

WHITFIELD: All right. Thanks so much. Alison Kosik, I appreciate that.

All right still to come, you hear her practically every day.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Siri, what are you wearing?

UNIDENTIFIED FEMALE: Aluminum silicate glass and stainless steel. Nice, huh?

(END VIDEO CLIP)

WHITFIELD: There's a real woman behind that voice. Who is Siri really? The mystery behind the voice revealed and that's new in the next hour of the NEWSROOM.

(COMMERCIAL BREAK)

WHITFIELD: Four days and counting for the government shutdown. Four days marked by spin on both sides of the political aisle and an increasingly personal war of words between lawmakers. And now Kentucky Senators Rand Paul and Mitch McConnell have been caught in one very unscripted moment courtesy of an open mic.

(BEGIN VIDEO CLIP)

SEN. RAND PAUL (R), KENTUCKY: Do you have a second?

SEN. MITCH MCCONNELL (R), KENTUCKY: I'm all wired up here.

PAUL: I just did CNN and I just go over and over again, we're willing to compromise, we're willing to negotiate. I think, I don't think they poll tested "we won't negotiate". I think it's awful for them to say that over and over again.

MCCONNELL: Yes I do, too. And I just came back from a two-hour meeting with him and that was -- that was basically the same view privately as it was publicly.

PAUL: I think if we keep saying we wanted to defund it, we fought for that, but now we're willing to compromise on this, I think they can't -- I think I know we don't want to be here but we're going to win this -- I think.

(END VIDEO CLIP)

WHITFIELD: All right joining us now Republican Congresswoman Renee Ellmers of North Carolina good morning to you.

REP. RENEE ELLMERS (R), NORTH CAROLINA: Good morning.

WHITFIELD: So what do you think about those comments? Is this an issue of you know who can come up with the best talking point, instead of talking about real solutions, getting the government back open, getting business to resume?

ELLMERS: Well, you know, there again, that's the Senate and what we need the Senate to do, we need Harry Reid and the senators -- senators who are appointed to come to the table. We're following regular order here in the House as laid out by the Constitution.

When we have disagreements, we have to come to the table. And that's where we're at and we're waiting.

WHITFIELD: Ok so one solution the house is offering is a separate bill to fund NIH cancer trials. The Senate rejected that proposal. And Harry Reid has vowed that no piecemeal bills will pass. So would you support a clean funding bill with no changes to the health care law just to simply get the government going again?

ELLMERS: Well, as I said, we're waiting for them to come to the table. That was the last effort that we made to them before shutting down the federal government. You know, this is the thing, this isn't our shutdown. This is Harry Reid and Barack Obama's shutdown.

WHITFIELD: Really?

ELLMERS: And yes as far as piece-mealing these efforts, appropriations, we're doing the job that the House is supposed to do. We own the purse. We can and have the ability to do this. Why would anybody deny NIH funding? Talk to any family who's gotten a new diagnosis of cancer for their child.

WHITFIELD: But isn't that a consequence -- that's a consequence of shutting the government down. I mean there are an awful a lot of entities within the U.S. government, and when the government is shut down, that means there's a lot of pain being felt in lots of different directions.

ELLMERS: Oh there's a lot of pain. There's a lot of pain being inflicted by the President himself. Let's look at my own district. I have Ft. Bragg. We have 7,000 civilian employees who have been furloughed, totally unnecessary. We passed legislation to keep them working. This is something the President has instituted.

Look at the World War II Memorial, for crying out loud. Here we have an open air memorial under barriers and security.

(CROSSTALK)

WHITFIELD: That's a national park. It falls under the U.S. government as a whole. I mean nowhere does it say only portions, only pieces of the government would be affected. Only some of the national monuments will be affected by all of this.

ELLMERS: Why not? We have -- we have the ability to pass appropriations. It's what we should have been doing all along except that we've received so much resistance from the Senate, from Harry Reid who just simply will not work with us. We're doing the job that the House is supposed to do by passing appropriations.

This is as laid out in the Constitution. There is absolutely no reason to be resistant to this effort.

WHITFIELD: So there are a number of folks, a number of lawmakers who said they are willing to give up their paychecks. Are you among them who said I'm not giving up my paycheck, I need it? So what do you say to those many furloughed government workers who say they, too, need their paychecks but they don't have that option right now?

ELLMERS: Well absolutely. Well you know the thing of it is, is let's -- let's talk about the facts here. Our paychecks came on October 1st. They were already instituted and they ended up in our bank accounts as our staff as well. Now, you know, a month is going to go by and there will be another opportunity to defer my -- to defer my paycheck.

You know, I may do it at that point. The point of the matter is we were already past that level and now we're in the situation where this is being brought up as an issue. I feel for those who have been furloughed. I'm there with them.

But at the same time we have to stick to the facts here and we've got a month. We've got to come up with a big deal. We're faced with a debt ceiling negotiation and whether the President wants to negotiate with us or not he's going to have to if he wants that.

WHITFIELD: So it doesn't sound like you're very helpful if there's going to be some agreement in a matter of days to get the government working.

ELLMERS: Well you know I'm not sure what's going to happen as long as Harry Reid says he's not going to come to the table we're stuck. You know we're going to keep passing appropriations bills. We're going to keep fighting for the American people. We want fairness, we want every American to have the same options that we have here in congress. We want every American to have good health care but at the same time it shouldn't be mandated -- mandated to them as we've given all these waivers and delays and exemptions to other big business and everyone across this country.

(CROSSTALK)

WHITFIELD: Ok. We'll have to leave it there. It sounds like we're going to continue this fight forever and ever of because it seems like there are an awful lot of contradictions in what both sides are saying. Representative Renee Ellmers of North Carolina thanks so much.

ELLMERS: Thank you, Fredricka.

WHITFIELD: And we'll be right back.

(COMMERCIAL BREAK)

WHITFIELD: All right pitching is very important in the playoffs. The Dodgers and the Pirates are great examples of that but in very different ways.

Andy Scholes has the highlights in this morning's "Bleacher Report." Hi, Andy.

ANDY SCHOLES, BLEACHER REPORT: Hi good morning Fredricka. Well the Dodgers are the favorites to win the World Series this year and starting pitcher Clayton Kershaw is a big reason why. The big lefty was dominant last night in game one against the Braves. Kershaw struck out 12 batters in seven innings of work. The Dodgers threw to some easy pick (inaudible) and went to take a 1-0 lead in the series.

But the Pirates meanwhile, well, they wish they had Clayton Kershaw. A.J. Burnett got the ball in game one for the Buckos and he had a meltdown of epic proportions. Burnett gave up seven runs in just two innings of work. Three of those runs, three of those seven runs came off as upper deck home run from Carlos Beltran. It was Beltran's 15th postseason dinger tying him with Babe Ruth for eight all time. St. Louis crushed the Pirates 9-1.

Now the playoffs continue today on TBS with a triple-header, the Rays and Red Sox get things going at 3:00 Eastern. That game is followed by game two between the Dodgers and the Braves and the night cap, game one between the Tigers and the A's.

WHITFIELD: Oh my.

SCHOLES: So plenty of baseball to watch this afternoon and tonight -- Fredricka.

WHITFIELD: Yes.

Baseball fans are getting no work done today, Andy.

SCHOLES: No doubt.

WHITFIELD: All right thanks so much. The next hour of CNN NEWSROOM begins right after this.

(COMMERCIAL BREAK)