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Donald Trump Did Not Pay Taxes in 1990s; Replay of Exclusive Interview with Libertarian Presidential Candidate; Clinton on the Campaign Trail in Charlotte, NC; "SNL" Returns; Hurricane Matthew Gaining Strength. Aired 4-5p ET

Aired October 02, 2016 - 16:00   ET

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

[16:00:00] FREDRICKA WHITFIELD, CNN ANCHOR: But first, let's break down what is in the report. We have two correspondents covering all of the angles with CNN Money correspondent Cristina Alesci and CNN correspondent Chris Frates.

So Cristina, you first. What's in the report?

CRISTINA ALESCI, CNN MONEY CORRESPONDENT: What's in the report is this $960 million number which is a big number. It is a headline grabbing number. And let's not forget, this is also raising lots of questions, right? Is there anything in Trump's business track record that we already don't know that would have led to these losses? Tax experts are beginning to question, what are these deductions about? Are they customary? Are they unusual? The sheer size of this is becoming a story in and of itself. So for right now, we are taking a look at that $916 million number. Take a listen.

(BEGIN VIDEOTAPE)

ALESCI (voice-over): Here is what the "New York Times" is reporting. Trump declared a loss of $916 million in 1995. And that loss could be used to cancel taxable income for potentially up to 18 years, according to tax experts the paper hired. Key details are still missing because the "New York Times" doesn't have Trump's complete tax returns. And CNN can't confirm the authenticity of the documents the paper does have.

But the report means even if Trump made $916 million in the 1995, he could potentially have paid little or no taxes on that income. How is that possible? It all comes down to something called net operating loss, according to the "times." When a business has more tax deductible expenses than income, you end up with what the IRS calls a net operating loss.

Now, people might be asking, if Trump could write-off such a large loss over so many years, why can't I do this? Most people are familiar with a different type of deduction. Capital losses. Typically, these are tied to stocks, bonds and other investments. And there are different rules for those and limits on how you can use them.

With Trump, we're most likely talking about a loss from operating a business, which according to the IRS, is the most common reason for a net operating loss. If Trump had much of his wealth tied up in businesses, any losses in those businesses might flow directly to him, so he could use them to reduce his own tax bill in future years.

It's important to keep mind that the tax code allows you to do this. The Trump campaign responded, saying the candidate paid hundreds of millions of dollars in other taxes, including property and real estate taxes. But it didn't directly deny the "Times" reporting on the federal income tax. And Trump himself responded to the report with this tweet. I know our complex tax laws better than anyone who has ever run for president, and I'm the only one who can fix them. #failing at "New York times."

I spoke to the accountant cited in the "Times" story. He took issue with the story because Trump's income in subsequent years isn't public. So does this tell us that Trump lost all of this money only in 1995? The answer is no. Almost $1 billion is a lot of money to lose. We don't know exactly what happened and when it happened. We do know that his businesses were hurting in the early 1990s. Taj Mahal in Atlantic City, the plaza hotel in New York, for example. Operating losses from those businesses could have been listed on his tax returns earlier in the 1990s. And then he could have carried them over to 1995.

But we actually don't everyone know if he used these losses to offset income in later years. The tax law says he could have, but without the returns from those later years, we can't know for sure. The big question is, do these documents help us understand how much Donald Trump is really worth? Again, the answer is no.

(END VIDEOTAPE)

ALESCI: As for how much Donald Trump is really worth, the Trump campaign put out a statement a few months ago saying his net worth is about $10 billion. Estimates from "Forbes" and "Bloomberg" put it lower. "Forbes" at $3.7 billion. "Bloomberg" got $3 billion. But it is very clear that even if there is additional tax information that comes out, it's not going to shed any light on his net worth. What it will shed light on is the amount of income for the years that he does release tax returns for. Charitable donations and whether or not he actually paid federal income tax for this.

WHITFIELD: All right, Cristina Alesci, thank you so much.

So Chris Frates back with us now. We saw Trump's tweet in Cristina's report. What about anything more on a formal response?

CHRIS FRATES, CNN CORRESPONDENT: Yes. We do have some more, Fred. And the first thing to point out is that the Trump campaign isn't disputing the accuracy or the facts in that "New York Times" story. But they did put out a statement today. And they called the "Times" and the media generally an extension of the Clinton campaign. The statement went on to attack Clinton before finally arguing that Trump had a fiduciary responsibility as a businessman to pay no more tax than legally required. And remember, during the debate last week, Trump made a similar point said that not paying taxes makes him a smart businessman. In a statement today, the campaign said this. Mr. Trump knows the tax

code far better than anyone who has ever run for president and he is the only one that knows how to fix it. The incredible skills Mr. Trump has shown in building his business are skills we need to rebuild this country.

And that's really a version of an answer we heard before, Fred. You know, namely, that Trump knows how to work the system so well, that only he can fix it. And he used that same explanation during the primaries. People asked him, why did you give money to Democratic politicians? Are you a Democrat? And he said, no. I just know how to play and game. And, in fact, I'm the only person who can fix what he often called a rigged system, Fred.

[16:06:00] WHITFIELD: All right. And then, what about the Clinton camp? How are they either responding or seizing on this opportunity?

FRATES: Yes. Certainly seizing on this, right, and not surprisingly. Because, you know, they have been pressuring Trump for months to release his tax returns. He still hasn't done that. But this story gave the Clinton campaign an opening. They went for it. They said this in a statement.

This bombshell report reveals the colossal nature of Donald Trump's past business failures and just how long he may have avoided paying any federal income taxes whatsoever. He stiffed small businesses, laid off workers and walked away from hard working communities. He apparently got to avoid paying taxes for nearly two decades while tens of millions of working families paid theirs.

The statement goes on with mook again calling on Trump to release all of his tax returns. So this is not a storyline that I expect that is go away any time soon, Fred.

WHITFIELD: Yes. And then Bernie Sanders also weighed in on CNN's "STATE OF THE UNION" today, didn't he?

FRATES: He did. In fact, he was echoing the Clinton's story line there. That, you know, hardworking people who are making $15 an hour are paying their taxes. Why isn't Donald Trump? In fact, let's take a listen to what he had to tell our own Jake Tapper.

(BEGIN VIDEO CLIP)

SEN. BERNIE SANDERS (D), FORMER PRESIDENTIAL CANDIDATE: So Trump goes around and says, hey, I'm worth billions. I'm a successful businessman. But I don't pay any taxes. But you, you make 15 bucks an hour, you pay the taxes, not me. That is why people are angry and want real change in this country.

(END VIDEO CLIP)

FRATES: So there you have Bernie Sanders. And that is a message we will hear, I think, continuing into this week. He is going to be on the campaign trail for Hillary Clinton making that case that he made so well in the primaries. That Hillary Clinton and the Democrats, they care about the middle class. Donald Trump is rich billionaire who uses the laws to his own advantage who doesn't even pay federal taxes there, Fred.

WHITFIELD: All right. Chris Frates in Washington, thanks so much.

So Donald Trump supporters are laying out similar responses to the "New York Times" report on his taxes.

(BEGIN VIDEO CLIP)

RUDY GIULIANI, SENIOR ADVISOR TO DONALD TRUMP: The reality is he is a genius. What he did was he took advantage of something that could save his enterprise, and he did something we admire in America. He came back. Great men have big failures, and then they take those failures and they turn them into great results. I would rather have a genius like Donald Trump running this country than someone like Hillary Clinton. And all she seems to do is produce jobs for the FBI.

GOV. CHRIS CHRISTIE (R), NEW JERSEY: The late -- the early 1990s was a difficult time for lots of folks. We went into a recession, as I know you will recall. And Donald Trump wrote the book "the art of the comeback." This is a guy who went lots of businesses went out of business in the early 1990s. He fought and clawed back to build another fortune to create tens of thousands of more jobs. And this is actually a very, very good story for Donald Trump.

(END VIDEO CLIP)

WHITFIELD: All right. So I want to bring in CNN's senior political analyst Ron Brownstein and director of the University of Virginia center of politics Larry Sabato. Good to see both of you.

UNIDENTIFIED MALE: Hey, Fred.

WHITFIELD: OK. So Ron, you first. I mean, Chris Christie said, you know, this is good, actually, for Donald Trump. And you heard from Giuliani who says, you know, he would have been a fool to not take advantage of that loophole. And that he really is a genius in his view because he had the ultimate comeback. So how will this translate to voters?

RON BROWNSTEIN, CNN SENIOR POLITICAL ANALYST: This is a really important battlefield. Because if you think about the last year, Democrats have made a lot of progress about raising questions about Trump's temperament, his experience, his qualification and his values, whether he is biased against women and minorities.

But what they have not done successfully is what they did to Mitt Romney. They really have not painted him as a rich guy who is out to benefit rich guys like himself at the expense of the middle class. And in fact, there is a big portion of the electorate that essentially buys the argument that Rudy Giuliani and Chris Christie is making. That he is kind of a trader to his class. That he is kind of an insider who knows how the game is rigged and can break the mold on their behalf. The problem is that, first of all, his tax plan primarily does, in

fact, benefit people like him. And then this really pushes at the edge of that kind of acceptance and understanding. Because I think for a lot of people, it is hard to understand how someone worth as much as Donald Trump says he is could avoid potentially paying taxes for years and years.

And look, the fact that he has been willing to take all of the heat that comes from breaking the president and not releasing his tax returns does suggest that he believes that having it out there would be worse than what he is going through now. And this may give you some indication why.

[16:10:25] WHITFIELD: So then with that argument, Larry, one would think this would compel him to possibly release more. But then listening to what Ron had to say, maybe not.

LARRY SABATO, DIRECTOR, CENTER FOR POLITICS, UNIVERSITY OF VIRGINIA: No, Ron is exactly right, Fred. We are not going to see Donald Trump's tax returns from Donald Trump. We got a hunt or two today that more returns or information could be on their way to the "New York Times" or maybe other publications. So we might be reading more, but it won't be from Donald Trump.

But Fred, to me, the reality here is that Donald Trump has called -- the fact that he has paid no taxes at least in some years very smart. He is smart.

WHITFIELD: He said it in the debate.

BROWNSTEIN: Yes.

SABATO: Yes, he said that in the debate. Rudy Giuliani today called him a genius for not paying taxes. What is the message to the tens of millions of Americans who make small salaries, tiny by comparison to Donald Trump, who pay a big chunk of their salary in federal income taxes? I guess they are chumps. I guess they are stupid. And I don't expect this to affect a single one of Donald Trump's supporters.

The most accurate thing Donald Trump has said all year is that he could go out on Fifth Avenue, shoot somebody and he wouldn't lose any support. But this could energize some of the Clinton troops that need it, and it might attract some fraction of the relatively small group of hard undecideds to vote against Trump.

WHITFIELD: So Ron, at the root here, the "New York Times" reporting it authenticated, you know, these documents. Said it received them in the mail. What it did report in the article, I know you all read it, and it said that there was a return address, you know, on the envelope. It was postmarked in New York City, but that's all, you know, that's being reported that we can know of the source. Is it your expectation there might be other documents on the way to that same mailbox, unless they've already arrived?

BROWNSTEIN: You know, you don't know. First of all, it is kind of -- I loved how one of the reporters, I think tweeted out. You know, it is a good reporting technique, answering your mail. I mean --

WHITFIELD: Right. It's not a crime to open your mail.

BROWNSTEIN: It is not a crime to open your mail. No, I don't think we know. I mean, it is so extraordinary that we don't have his tax returns, right. The public has not seen them. That you do wonder whether there will be more information coming.

And, look, just to go back to Larry's point from a minute ago. I mean, what we are seeing here, Donald Trump has a core coalition that is deeply alienated from many of the trends in American life. Economic, cultural and certainly alienated from the opinions of the leadership class in both parties. This is the kind of report that kind of deepens the anxiety of Trump among many Republican-leaning elements, of the leadership class of society. No member of the - no CEO in the Fortune 100 has donated to Donald Trump. An extraordinary shift from previous presidential campaigns.

Dozens of former Republican national security officials said they do not believe he is capable of being commander in-chief. No living Republican former president endorse him. And one has suggested he is voting for, you know, as well as the others maybe voting for Hillary Clinton. But yet, his voters, you know, kind of see all of that as more evidence that there is kind of this bipartisan consensus that leaves them out. So in a strange way, I think this kind of revelation reinforces the cultural division that we have election between the Trump coalition and so many other voters who find him outside of traditional American norms.

WHITFIELD: Yes. And the issue isn't likely to go away. Again, you know, we are just seven days away from the next presidential debate. Two days away from the vice presidential debate to say. It is possible these questions will come up at either one of the debates. We know it came up by way of Hillary Clinton, you know, in her inferences. And then, you know, Dana Bash caught up with Donald Trump in the spin room after that Monday night debate on the very issue of evading taxes. This is what he had to say.

(BEGIN VIDEO CLIP)

DANA BASH, CNN CHIEF CONGRESSIONAL CORRESPONDENT: It sounds like you admitted that you hadn't paid federal taxes and that was smart. Is that what you meant to say?

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: No, I didn't say that at all. I mean, if they say I didn't, I mean, it doesn't matter. I will say this. I hate the way our government spends our taxes.

MARK PRESTON, CNN POLITICS EXECUTIVE EDITOR: There was some confusion about how you answered the question about paying taxes. You have paid some federal taxes over the years?

TRUMP: I hate the way our government spends our money. Our government takes our money, hey throw it out the window whether in the Middle East or wherever. But I hate the way our government spends our money. PRESTON: But you have paid federal taxes?

TRUMP: Of course I pay federal taxes.

(END VIDEO CLIP)

[16:15:01] WHITFIELD: All right. So Larry, that was before the "New York Times" report. Now the "New York Times" report, you know, offers up a whole another, you know, bag of worms. Do you feel like he will be compelled to say more, or work very hard to be consistent with some of what he just said?

SABATO: Well, he will be asked more, certainly, in the two remaining presidential debates. And I think you were right, Fred, suggesting it will come up in the vice presidential debate, too. And let's not forget, taxes were a major element of last night's "Saturday Night Live" debate. I'm kidding, of course, because that was not a real debate. But millions saw it. I can guarantee you that.

This is a topic that simply will not be taken off the table because as Ron pointed out, Donald Trump is the first candidate since the 1970s to deny the electorate any look at even a year's worth of his tax returns.

WHITFIELD: And then Ron, you know, it becomes a very complex situation because Donald Trump has been on record so many times with an opinion about the tax code system. In fact, this is what he had to say, also.

(BEGIN VIDEO CLIP)

TRUMP: I have joined the political arena so that the powerful can no longer beat up on people who cannot defend themselves. Nobody knows the system better than me which is why I alone can fix it.

I fight like hell to pay as little as possible for two reasons. Number one, I am a businessman and that's the way you are supposed to do it. And you put the money back into the company and employees and all of that. But the other reason is that I hate the way our government spends our taxes. I hate the way they waste our money. Trillions and trillions of dollars of waste and abuse. And I hate it.

(END VIDEO CLIP)

WHITFIELD: So now, Ron, now after the "New York Times" article, after our discussion, does all of that sound different? And that was, you know, during the RNC, in part, and another interview with CBS.

BROWNSTEIN: Well, the act of levitation that he successfully achieved is that he is running as a billionaire populous. As I said where Democrats have made a lot of ground in questioning his temperament, his experience and his racial and his attitude toward women and minorities. But they really have not made much of a dent in this kind of self-image of a kind of trader to his class, the one who knows how the system works, who will, you know, kind of break all of the windows on behalf of the ordinary people who are locked out. That is clearly his closing argument. That is his generic response to every new revelation that comes out. You know, it is on -- the globalist media, in behalf of this kind of globalist bipartisan elite that is out to get you, is trying to undermine me. And look, that is -- there is an audience, as I said, for that argument. The problem is that audience is not a majority. And where he is falling short, and -- Larry would agree, are in the white collar suburbs whether northern Virginia, the suburbs of Denver, the suburbs of Philadelphia, the I-4 corridor and Florida.

In all of those places, you have voters who are less likely to kind of view themselves as being oppressed by some bipartisan globalist elite. And in fact, our kind of, you know, basically in tune with the values that America I evolving into. And I think ultimately, that's where these disputes hurt Trump. And that -- those places are what loom as heartbreak hill for him right now in this election.

WHITFIELD: And quickly, Larry. You get to wrap it up.

SABATO: Yes. I think Ron is absolutely correct. And the other part of this, again, that won't affect Trump supporters but will affect others, including Hillary Clinton supporters, is that that Trump in a sense is trying to present himself as Robinhood. Now Robinhood stole from the rich to give to the poor. Donald Trump has basically kept it for the rich himself. That there is a major difference between Robinhood and Donald Trump.

WHITFIELD: All right.

BROWNSTEIN: The tax plan doesn't support the rhetoric, right. The tax plan is not in line with his rhetoric. It is a tax by that primarily provides benefits for the rich.

WHITFIELD: All right, Ron Brownstein, Larry Sabato, thanks so much gentlemen. Always good to see you. Appreciate it.

BROWNSTEIN: Thank you.

SABATO: Thanks, Fred.

WHITFIELD: All right. And we will be right back.

(COMMERCIAL BREAK)

[16:23:04] WHITFIELD: The national transportation safety board just finished giving an update on last week's train crash in New Jersey. And just moments ago, the NTSB vice chairman explained the events leading up to the crash. Listen.

(BEGIN VIDEO CLIP)

BELLA DINH-ZARR, NTSB VICE CHAIRMAN: Yesterday, our recorders experts worked with the experts from the manufacturers to access data from the recovered locomotive event recorder, which was built in 1995. Unfortunately, the event recorder was not functioning during this trip.

(END VIDEO CLIP)

WHITFIELD: All right. We will wait for more information as the investigation continues out of Hoboken, New Jersey.

All right. Meantime, on to the race to the White House. Earlier, I had a chance to speak with libertarian presidential candidate Gary Johnson. And I asked him for his response to the "New York Times" report that Donald Trump might not have paid federal tax, for two decades due to tax loopholes. Well, Johnson said he had not read the article. So we then moved on to discuss those who questioned Johnson's qualifications after his running mate praised Hillary Clinton. I also asked him if he now could name a foreign leader that he admired. This is all of what he said.

(BEGIN VIDEOTAPE)

WHITFIELD: Do you feel you are qualified to be in the White House, even though your running mate says Hillary Clinton is the most qualified?

GARY JOHNSON, LIBERTARIAN PRESIDENTIAL CANDIDATE: Yes, absolutely. I mean, we are the most qualified. Two former Republican governors, served two terms each in states that were heavily Democrat. Getting reelected. Really, I just think it speaks volumes to the fact that people really do appreciate good stewardship of tax dollars. Bill Weld went on to say that taxes are going to go up under Hillary. There is nothing that government can't do in our lives when it comes to Hillary.

WHITFIELD: Many people started questioning your qualifications, especially after that Aleppo moment. And then you being unable to mention, you know, a foreign leader. So you have had time to sleep on it, think it over.

[16:25:09] JOHNSON: A foreign leader -- a foreign leader that I admired?

WHITFIELD: That you admire. So you have had time to think about it.

JOHNSON: Yes. So I still can't come up with one.

WHITFIELD: You cannot?

JOHNSON: I still can't come up with one. Well, that I admire, that I'm going to have to defend a foreign leader? Look, one of the surprises I had, to having been governor, is this, you know, I held a lot of people up in this country on pedestals that were elected politicians. I came to meet them up front and personal. And you know what? They didn't have the best interests of the country in mind. What they were was concerned more with getting re-elected. I came to find that out.

So I'm really a skeptical when it comes to elected leaders. And that isn't to say that there aren't a lot of them that I really do like. And certainly as governor, I could tell you governors that I admired. But foreign leaders, now I'm going to have to defend foreign leaders. WHITFIELD: Got it. So you are not -- this is not necessarily say you

are this exemplifies that foreign policy, international affairs, is not important to you?

JOHNSON: It is very important. But what really angers me is because you can dot the Is and cross the Ts on geographic locations or the names of foreign leaders that we put the military in harm's way. That we have men and women that are dying. They are getting hurt. They are getting mane. They are getting psychologically ruined for the rest of their lives. We have hundreds of thousands of innocent civilians in these countries we get involved in. Civil wars, intervening from regime change standpoint. They are getting caught in the crossfire. We are putting our military in harm's way.

Look, that's what angers me beyond belief. That angers me is that qualifies a person like Hillary Clinton to put our military in that crossfire?

WHITFIELD: OK.

JOHNSON: Have at it. Have at it.

(END VIDEOTAPE)

WHITFIELD: All right. Gary Johnson was not allowed in the first presidential debate because his polling numbers were not at 15 percent. It's because of that same reason that he is not expected to be in next week's town hall debate, which will be moderated by CNN's Anderson Cooper.

We'll be right back.

(COMMERCIAL BREAK)

[16:30:26] WHITFIELD: Hillary Clinton hitting the campaign trail today in the key battleground state of North Carolina. That is her exiting, actually, after spending a good portion of her day meeting with Faith and community leaders in Charlotte, in the wake of the social unrest following the fatal police shooting of Keith Lamont Scott. Clinton started the trip with a speech at a church service.

(BEGIN VIDEO CLIP)

HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: Our entire country should take a moment to really look at what's going on here and across America. To imagine what we see on the news, and what we hear about. Imagine it through our children's eyes.

(END VIDEO CLIP)

WHITFIELD: Senior Washington Correspondent Joe Johns is live for us there in Charlotte, North Carolina. So, Joe, was it mission accomplished for Hillary Clinton? Did she convey the message she was hoping would be receptive in the community there?

JOE JOHNS, CNN SENIOR WASHINGTON CORRESPONDENT: Fred, it was very important for Hillary Clinton and the campaign to try to connect with Charlotte, particularly on this issue and they kind of got waylaid about a week ago. She scheduled a trip here. Donald Trump was talking about coming here, as well. And both campaigns were forced to say no, because the mayor said it is an issue of bad timing.

When Hillary Clinton finally got here, they made it very low key. They didn't tell anybody that they were coming to the Little Rock AME Zion Church here in Charlotte. The congregation was surprised when they arrived. And then Hillary Clinton, sort of had to strike a balance and really watch her tone in her speech. She kept it very personal. She talked about the individual issue of police use of lethal force and African-Americans in general.

And then to top it all off, she brought a young girl, a 9-year-old, name Zianna Oliphant up to the podium next to her while she finished her speech. I talked to the Zianna after that, after she'd also spoken with Mrs. Clinton. Listen.

(BEGIN VIDEO CLIP)

ZIANNA OLIPHANT, YOUNG GIRL FROM CHARLOTTE: I think it was pretty good talking to her.

JOHNS: And what did you guys talk about?

OLIPHANT: Like, we were like -- we were talking about -- well, I only got a little bit of tears. We were like talking about like how, like, the community and stuff like that, how we can like make a change and stuff like that.

(END VIDEO CLIP)

JOHNS: Hillary Clinton also met with a group of community leaders here in Charlotte to talk about some of the issues confronting this community right now. She's now back in New York, back to you Fred.

WHITFIELD: All right. Thanks so much, Joe Johns there in Charlotte, North Carolina.

All right, coming up, straight to the source, we'll hear from one of the New York Times reporters who helped break the story on Trump's taxes.

(COMMERCIAL BREAK)

[16:36:27] WHITFIELD: Is it the first October surprise of the presidential campaign? The New York Times saying it received some of Donald Trump's decade's old tax documents in the mail. I asked Third Party presidential candidate Gary Johnson about his thoughts on the bombshell report last hour.

(BEGIN VIDEO CLIP)

WHITFIELD: Did you read the article? Do you have an understanding of it fully? Like the rest of us.

JOHNSON: No, I did not read the article in the New York Times. No, I did not.

(END VIDEO CLIP)

WHITFIELD: CNN's Brian Stelter sat down with one of the newspaper, reporters who helped break the story, and he asked Susanne Craig about the vetting process and if more documents could come out in the future. Here is part of the interview.

(BEGIN VIDEO CLIP)

SUSANNE CRAIG, REPORTER THE NEW YORK TIMES: We got a group of reporters together, and we first of all, we sort of had two tracks. One is let's try and verify them. And two, let's just see what they are and try to dissect it. You know obviously, there was a large concern they weren't real. We had no sort of solid, where did they from?

BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT: You thought someone might be trying to trick you, dupe you?

CRAIG: They could have been, very much so. And that is why we wanted to verify it and just do some good, old fashioned reporting.

STELTER: I have been asking, eventually you reached out to his former accountant, basically, right?

CRAIG: Tax returns are hard to verify. There are only a few people who could verify them. The signatures on it were Marla Maples, Donald Trump and Jack Mitnick, his former accountant. And David Barstow, my colleagues, one of the reporters that I worked with on the story went down to see Jack, and had a long discussion with Jack about the taxes and Jack Mitnick said, they were legitimate.

STELTER: In other words, when you see a story that is on the front page of the Times, weeks of work had to go into checking this out. Fox have some doubts about your sourcing, but they also said that you're trying to take down Donald Trump. Is that what you're doing?

CRAIG: I think there are taxes, he is running for president and whether or not he is paid taxes or not. It is an incredibly important issue. There is pressure on him to release the tax returns. I think it's called reporting. I mean, as simple as that.

STELTER: You think Fox doesn't understand that?

CRAIG: I think -- I guess they have an opinion. I mean, we think that we're doing our jobs. And part of that is to look for things like Donald Trump's taxes and to find indications of whether he is paid taxes or not. I mean, this is an important issue, and I think that is sort of what we do.

STELTER: There was a legal threat from the Trump organization before you published the story. I've been asking the Trump campaign this morning, if they are going to follow through. They haven't replied to the questions. Are your expecting legal action? CRAIG: I don't know. I don't think it is a crime to check your

mailbox. And that is what we did and we did some reporting. We definitely -- they told us that they may sue. We are comfortable with the story and went ahead with it.

STELTER: Are you sitting on more documents?

CRAIG: We are doing a lot of reporting around this. So, we're going to keep going.

STELTER: That is a yes. You have more documents besides the three?

CRAIG: Maybe, a no comment.

STELTER: No comment. And who do you think sent the document the return address was Trump Tower. But does this mean they definitely came from Trump Tower, does it?

CRAIG: No, it doesn't obviously. It could have come from any number of sources.

STELTER: Do you know who?

CRAIG: Again, I'm going to no comment on that one.

(END VIDEO CLIP)

WHITFIELD: All right. That was Suzanne Craig with the New York Times talking with Brian Stelter about the story they broke earlier today.

All right, coming up next, bracing for impact. A monster storm hovering over the Caribbean, a live report from one area expected to take a hit.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

[16:43:23] UNIDENTIFIED MALE: Team Clinton is your chance to steal. What are you doing over here?

UNIDENTIFIED MALE: We are just getting acquainted.

UNIDENTIFIED FEMALE: He is very nice.

UNIDENTIFIED MALE: Do you like wings, really good wings?

(END VIDEO CLIP)

WHITFIELD: Saturday Night Live making its much-anticipated return last night, in what was the shows highest rated season opener in eight years. CNN's Jessica Schneider has the highlighted.

(BEGIN VIDEO CLIP)

ALEC BALDWIN, ROLE-PLAYING DONALD TRUMP: My microphone is broken. JESSICA SCHNEIDER, CNN NATIONAL CORRESPONDENT: Alec Baldwin posing

with a pout and planting on a toupee to channel Trump.

BALDWIN: Do you hear that? She's picking up somebody sniffing here. I think it's her sniffs. She is been sniffing all night. Testing, testing.

SCHNEIDER: The 16 times record-holding SNL host taking over Trump for the new season. Baldwin bringing up Trump's Twitter tirades.

BALDWIN: I am going to set my alarm for 3:20 a.m. And go sit on the golden toilet bowl and tweet about it until completion.

SCHNEIDER: And is off color remarks from last week's debate.

BALDWIN: We should be talking about the important issues like Rosie O'Donnell and how she is a fat loser.

SCHNEIDER: The election cycle long providing SNL with plenty of fodder for its comedy, from Tina Fey's Sarah Palin.

TINA FEY, ROLE PLAYING SARAH PALIN: And I can see Russia from my house.

SCHNEIDER: To Will Ferrell as George W. Bush.

WILL FERREL, ROLE PLAYING AS GEORGE W. BUSH: Is that test strategy.

SCHNEIDER: This season, Kate Mckinnon with her role as Hillary Clinton will battle Baldwin's Trump.

KATE MCKINNON, ROLE PLAYING AS HILLARY CLINTON: He hasn't released his tax returns, which means he is either not that rich.

BALDWIN: Wrong.

MCKINNON: Not charitable.

BALDWIN: Wrong.

MCKINNON: Or never paid taxes in his life

BALDWIN: Warmer.

LESTER HOLT, PRESIDENTIAL DEBATE MODERATOR: Secretary Clinton, what do you think about that?

[16:45:16] MCKINNON: I think I'm going to be president.

(CHEERS)

(APPLAUSE)

SCHNEIDER: But it wasn't just Baldwin bearing the brunt of the ridicule. McKinnon mocked Clinton's relentless debate prep and ruthless presidential ambition. MCKINNON: Listen, America, I get it. You hate me. You hate my

voice, and you hate my face. Well, here's a tip. If you never want to see my face again, elect me president and I swear to God I will lock myself in the oval office and not come out for four years. But if you don't elect me, I will continue to run for president until the day I die. And I will never die.

(CHEERS)

(APPLAUSE)

SCHNEIDER: And Mckinnon showcased Clinton's now signature shimmy.

MCKINNON: Not a response, more of a request, can America vote right now?

SCHNEIDER: It wasn't just the candidates lampooned.

UNIDENTIFIED MALE: We're just getting acquainted.

SCHNEIDER: Just about everyone in the political realm this season took a hit, including Trump's three oldest children.

UNIDENTIFIED FEMALE: What an interesting and wonderful question, Steve. May I ask my brothers for help?

UNIDENTIFIED MALE: They are not here.

UNIDENTIFIED MALE: Yes, we are.

UNIDENTIFIED MALE: Who is this?

UNIDENTIFIED MALE: I'm Donald Jr., the brains.

UNIDENTIFIED FEMALE: I'm Ivanka, the beauty.

UNIDENTIFIED MALE: And I'm Eric.

SCHNEIDER: And an unprecedented election cycle.

BALDWIN: This is over. Good night, Hofstra.

SCHNEIDER: Sure to continue providing the plenty of comedy on Saturday night. Jessica Schneider, CNN New York.

(END VIDEO CLIP)

WHITFIELD: So again, it was the top rated season premiere of Saturday Night Live since 2008. We'll be right back.

(BEGIN VIDEO CLIP)

MCKINNON: I'm better than ever. Let's do this.

HOLT: And finally, he is the man to blame for the bottom half of all his kids' faces. It is Republican nominee, Donald Trump. (APPLAUSE)

(CHEERS)

(COMMERCIAL BREAK)

[16:51:30] WHITFIELD: All right now for a look at this week's CNN hero back in the '80s, I should had sell this, decided to sell everything, buy an apartment complex and help house, the most vulnerable homeless citizens. Now, her organization is housing more than 7,000 of Houston homeless.

(BEGIN VIDEO CLIP)

ISHA DESELLE, FOUNDER TURNING POINT CENTER IN HOUSTON: When you are older, living on the street, is a very scary case. You're much more vulnerable. The people who are in between the ages of 50 and 62, society views them as too old for working and too young for social security. They need help. It's like, you don't exist, and that is wrong.

(END VIDEO CLIP)

WHITFIELD: To learn more about her story, visit CNNheros.com.

Hurricane Matthew is gaining strength with its first effects to be felt tonight in Haiti and Jamaica. The category 4 storm is threatening devastating blows throughout the Caribbean. Several U.S. Airlines are already warning passengers to expect delays and possible cancellations to those flights in the region. CNN's Michael Holmes is on the ground there, live for us, out of Kingston, Jamaica. So, Michael, how are conditions?

MICHAEL HOLMES, CNN ANCHOR AND CORRESPONDENT: Yeah, it's a lot of anticipation, I think, Fredricka, would be the best, why to sum it up. I mean, we've had a few thunderstorms roll through here. There was torrential rain a little while ago. But this is early days.

The effects again will be felt in the hours ahead. And the main part of the storm is expected to come through here, and also Haiti, Monday night into Tuesday. That is when the full brunt is going to go through. What we're hearing is, it's possible the storm going to track between the two, between Jamaica and Haiti, which would be good news. Because those winds you were talking about, 140 miles an hour, that is in the center.

Now, if it goes between the two, it'll be a little less on either side that because of the rotation, Haiti could get hit with bigger winds and more rain. And you got to remember, it's been deforested, Haiti, so there is not a lot holding the soil together at the best of times. They had the earthquake in 2010. A lot of people are still living in tents, so a lot of nervousness in Haiti. Here, they've been doing a lot of preparations. And it is really just a matter of waiting until it hits, Fred.

WHITFIELD: And then what about people and these so-called evacuation routes. I mean, is it very reflecting, because we're talking about an island nation. Yes, there are mountains, but not a whole lot of places for people to go.

HOLMES: Yeah, well the government has been proactive about this. They've set up a number of shelters where they told people that they can go. But it's interesting. A lot of people are saying they're not going to go, they are going to hunker down where they are and ride it out. We went to a school Port Royal, because they are -- a little low fishing town, just outside of Kingston here. They say, they've been through hurricanes before, and they're not frightened by this one. Have a listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Well, I just feel like I can stay here. I think I'm safer here. I'm from here, so I will die here.

UNIDENTIFIED FEMALE: I'm not afraid. I'm not going. I trust in God.

HOLMES: You're staying here, as well?

UNIDENTIFIED MALE: Yes.

HOLMES: You're not going to evacuate?

UNIDENTIFIED MALE: No, I'm staying here. I'm not afraid.

(END VIDEO CLIP)

HOLMES: We interviewed probably more than a dozen people. We found one who said he was going to go to a shelter. All the others said, hey, we've been through rough hurricanes in 2007, you know. We had Felix and Dean. And in 2004, we had Ivan, and then we had a big one which of course killed more in 1988 that killed hundreds of people in the region, more than 40 here in Jamaica. But they're saying even though that this is going to be a big storm it shall...

WHITFIELD: Sorry, we're losing that signal. All right, Michael Holmes there, maybe indicative of the conditions there in Jamaica.

I guess that'll do it for me. Thanks for being with me this afternoon. I'm Fredricka Whitfield, much more straight ahead. We'll hear from senior Trump adviser jack Kingston, his response to the New York Times report about Donald Trump's taxes straight ahead. The next hour of CNN Newsroom starts right after this.

(COMMERCIAL BREAK)

[16:59:18] POPPY HARLOW, CNN NEWSROOM SHOW HOST: Top of the hour. I'm Poppy Harlow in New York. We begin tonight with breaking new revelations about Donald Trump's taxes. The candidate who says he would run the U.S. Government like his business. The New York Times reporting it obtained summaries of Trump's 1995 tax returns and they show in a single year, Trump claimed that he lost nearly $1 billion. The result of some bad real estate buys, a failing airline and casinos that were losing money. The other big headlines here, the tax experts consulted by the Times

said such a big loss in the way that Trump took advantage of legal loopholes and credits could have allowed him to avoid paying federal income taxes entirely for nearly two decades.

CNN, I should note, has not independently verified those documents that were mailed to the New York Times. Hillary Clinton, you'll remember, made quite an issue of Trump's tax returns in the first debate, here's a look back at that moment of what Trump said in response.