Return to Transcripts main page
American Morning
Interview with Agriculture Secretary Tom Vilsack; Mourning The King; Life After Atlantis; Cancer Survivor's Mission
Aired August 16, 2011 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(COMMERCIAL BREAK)
CHRISTINE ROMANS, CNN ANCHOR: Wall Street wipes away last week's losses.
I'm Christine Romans.
The three-day rally now fizzling overseas.
CAROL COSTELLO, CNN ANCHOR: Good morning to you. I'm Carol Costello.
President Obama reaching out to America's heartland voters, hitting back hard at Republicans and talking up his new job plan to create jobs.
ALI VELSHI, CNN ANCHOR: And I'm Ali Velshi.
How is the president going to sell his plan to create new jobs in the United States? He's doing it in a new pimped-out bus built from the ground up, loaded with extras. We are going to kick the tires on this AMERICAN MORNING.
(MUSIC PLAYING)
ROMANS: Good morning. It's Tuesday, August 16th.
And wow! They got more buses in Iowa than I -- geez!
(LAUGHTER)
VELSHI: Well, they have a lot of rest stops. They have a lot of big stations; the biggest one in the country I think might be around there somewhere.
And did you see that pimped-up ride?
COSTELLO: Quick thing on pimped-up ride because it's probably not politically very politically correct, right?
VELSHI: I apologize.
Did you see that nice bus that the president is on? Groovy.
(LAUGHTER)
VELSHI: Over to you, Carol.
COSTELLO: Yes. Let's talk about the markets.
Just as the market appeared to be finding its footing, a reality check of how the world's economy -- well, it's still influx, isn't it?
VELSHI: Yes. Influx would probably be positive given what we have just heard this morning. New numbers out this morning show that growth in Europe is slowing. And that's not just dragging down stocks in Europe but it's also dragging down futures here in the United States. That's, of course, because Europe is a huge and important trading partner of the United States. And taken as a whole, the economy of the Euro zone is about the same size is that of the United States.
Let's take a look at the futures right now. After a three-day rally that was enough to wipe out the losses from last week, right now, the Dow, the NASDAQ and S&P futures are all lower pointing to a lower open this morning.
ROMANS: America's finances, including the recent debt ceiling deal, that will be issue number one when Vice President Joe Biden heads to Asia today. He's going to spend most of his time in China meeting with his counterpart, Vice President Xi Jinping. This is a man considered to be the likely successor to Chinese President Hu Jintao.
COSTELLO: President Obama will spend more time in Iowa today on board that bus on the second day of his tour across America's heartland. He'll be talking to farmers and small business owners, trying to get them on board with his plan for creating jobs, cutting the deficit and challenging Congress.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Some people have been saying, well, Mr. President, why don't you call Congress back for a special session? And what I've said is, the last thing the people need for confidence right now is to watch folks on Capitol Hill arguing all over again. What they need to do is come to the core, or go to Cannon Falls, or meet with their constituents back home and hear the frustration and understand that people are sick and tired of the nonsense and the political games. And hopefully when they come back in September, they're going to have a wake-up call that says we need to move the country forward.
You have got to start focusing on --
(END VIDEO CLIP)
VELSHI: Texas Governor Rick Perry continues his swing through Iowa. Christine wasn't kidding when there she said there are a lot of campaign-ish type of buses in Iowa right now. Perry has been shaking hands, kissing babies, criticizing President Obama and insisting that Obama is the greatest threat to the U.S. economy.
(BEGIN VIDEO CLIP)
GOV. RICK PERRY (R-TX), PRESIDENTIAL CANDIDATE: He's running for reelection. He's saying he's got a little trip. I'm saying he's got a lot of explaining to do about the economy if that's what he's out talking about. I don't think the folks in Iowa are going to be real excited about unemployment rate where it is and the number of Americans who are out of work. You know, this president has been an abject failure when it comes to the economy.
(END VIDEO CLIP)
VELSHI: Perry says he sees government as the problem, not the solution. He's been touting, by the way, the number of jobs that have been created in Texas since the recession. One-third of all the jobs in the United States have been created in Texas but it is now -- you know, a lot of it has to do with the increase in the price of oil and the number of oil jobs that are in Texas.
COSTELLO: And a lot of those jobs are minimum wage jobs.
ROMANS: What kind of jobs. You know, the kind of jobs the country is creating as a whole, the three biggest categories, are minimum wage type jobs. So, that's the service industry that we seem to be going forward.
Now, the president countering that criticism in Iowa today, unveiling $350 million in funding for small businesses in rural communities as his three-day bus tour continues to roll in through the Midwest.
Agriculture Secretary Tom Vilsack has been riding with the president and joins us live this morning from Dubuque, Iowa. Of course, he is the former governor the Iowa.
And, you know, Governor and Secretary Vilsack, this is the time every few years when Iowans feel really popular, don't they?
(LAUGHTER)
TOM VILSACK, AGRICULTURE SECRETARY: Well, it does attract a lot of folks from outside the state. That's for sure.
ROMANS: Is the president on -- is this a campaign style swing or is this a presidential "I have a jobs plan" and this is the first piece of it? What is it? Because the Republicans have criticized him saying that the president is campaigning.
VILSACK: Well, this president made a historic commitment to rural America by signing executive order establishing a rural council, the first cabinet level council dedicated to rural areas ever in our history and this is a continuation of the council's work. He instructed his cabinet members and administration officials to travel around the country, to listen and to learn about steps that we could take to put more activity, more economic opportunity in rural America.
And so, yesterday, we began the process of announcing a series of things that will be announced over the course of the next couple of weeks, including what you refer to which is a doubling of SBA's commitment and loan opportunities for small businesses in rural areas, as well as a unique partnership we'll have with the Department of Labor to get information about jobs out to our farm service offices that are located everywhere in rural America.
ROMANS: Do these --
VILSACK: So, this is all about policy. It's --
ROMANS: I'm sorry to interrupt. Do these small businesses need loads or they do need demand? They need economy that's working better and is this $350 million, the president's big plan that we are waiting for for how to create jobs?
VILSACK: This is -- this is the beginning of a series of proposals that will essentially establish a new economic opportunity within the rural parts of this country. It's not the plan. It's part of a larger commitment the president is going to make.
Later this afternoon, or this morning, I'll be visiting with Secretary Cho and Ray Nabus on a very interesting and unique partnership that we've developed in the energy area. And you're going to see a series of these things over the course of the next several weeks.
The combination of them is designed to say a message that we are back in business and we have tremendous opportunity here to promote innovation, particularly in rural areas.
ROMANS: Because, you know, people want a big -- they want a big solution. They want a big plan that they think is going to work that's going to create jobs, because when you take the debt ceiling debate, when you take all of this other political rhetoric in Washington at its core is the fact we have 9.1 percent unemployment rate and people want to know that this White House or whoever is running against this president has the solution.
Does this president in this White House have the solution to fix the jobs crisis?
VILSACK: It does and it can be simply stated. Obviously, we are going to be government that spends less but we are going to invest wisely and infrastructure and research and development. We're going to become a nation that makes, creates and innovates. And we're going to be able to export more effectively.
And the proof of this concept is in agriculture. What we are seeing in agriculture is probably the best year agriculture has ever seen in terms of income, the highest level of ag exports generating jobs here in America and been a bottom lines for farmers.
So, the formula is in rural America. And the president is going to have component parts of that formula laid out over the course of the next couple of days here in the forum and over the next several weeks.
ROMANS: Do you think ethanol subsidies survive in this new era of budget cutting and closing up loopholes? Because there are Iowa farmers say they feel as though, yes, they have the best year in maybe history for them, but they feel like the winds are blowing in a different direction.
VILSACK: Well, I think there will be support for the biofuel industry. I think it may look different. There's no question that those supports are going to end at the end of the year. There is a good idea of ending them sooner, taking a portion of it and applying it on deficit reduction and take another portion of it and building out the infrastructure of the pumping systems that will make flexible fuel vehicles more conveniently able to get biofuel.
We want to reduce our reliance on foreign oil. The president has challenged us to do that. It's going to be good for the economy and it's going to get us away from an unstable source of oil in the Middle East.
ROMANS: All right. Tom Vilsack, agriculture secretary, traveling with the president on this Midwest jobs tour -- thank you so much, sir.
VILSACK: Thank you.
VELSHI: Well, the White House calls it an official trip but the president's heartland tour, to some, has campaign written all over it. Maybe not all over it.
The super bus he is cruising around in is Greyhound one. He has no 2012 campaign slogans on it at all. In fact, it's one of two armored buses ordered up by the Secret Service at cost of $2.2 million each.
Now, check this thing out. It has bullet proof black windows, puncture proofed tires and five-inch thick doors and its own supply of oxygen.
COSTELLO: Wow!
VELSHI: The two buses will be used by the president and the Republican nominee during the 2012 campaign and beyond and the hub caps spin counterclockwise.
No, they don't. I made that up!
COSTELLO: I liked it, though.
Riding along with the president is Wolf Blitzer and Wolf joins us now from Dubuque, Iowa, with an inside look at the heartland, with a sneak peek into his upcoming exclusive interview with President Obama that will air tonight on "THE SITUATION ROOM."
Wolf joins us by phone.
So, Wolf, my first question, have you been on the bus?
WOLF BLITZER, HOST, "THE SITUATION ROOM" (via telephone): I've seen the bus and Ali is right. It's very impressive. I was not inside the bus but yesterday, I did actually see both of those buses and they were pretty scary looking when they drive by you in the motorcade.
But, you know, look, you got to protect the president. He's got to be in constant communications with his advisers, with his national security team. It's sort of a bus version of Air Force One or Marine One for that matter.
Ali is right. It's very, very cool.
COSTELLO: I think that -- as you know, Wolf, voters are frustrated with the president. They are frustrated with Republicans because no one seems to have come up with any sort of big, bold jobs plan. When you talk to people listening to the president on his bus tour, are they satisfied with what he is saying?
BLITZER: No. People want more action -- and that's why the president is going to come up with some sort of plan. I don't know what it is but I'll ask him about it. In September, he said he's got a new initiative that he is going to be coming forward.
The proposals he's been coming forward with the last week or two, you know, are important, but relatively modest. For example, extending the unemployment benefits and extending the payroll tax cut, creating infrastructure bank, approving the free trade agreements going forward with these initiatives. These are all important initiatives, there's no doubt about that. They will help create some jobs.
But he's got something much more ambitious in mind I suspect that's what he suggested in his town hall yesterday so I'll be anxious to hear what it is. But they say they're going to announce it when Congress comes back.
You know, it's interesting that if you listen to the president closely, he is beginning to get into that campaign mode, even though the White House says this isn't a campaign trip. In the stops yesterday, the first one in Minnesota and the second one here in Iowa, he is beginning to find that groove, if you will, going after the Republicans and, you know, he is getting a lot of heat from them and he is about to start dissing it back to the Republican presidential candidates -- although I think it will still build up over the coming months.
COSTELLO: I think you're right. And we can't wait to hear your interview later this afternoon.
Wolf Blitzer, thanks for waking up early with AMERICAN MORNING. We appreciate it.
And Wolf will have an exclusive one-on-one interview with President Obama today. You can see on "THE SITUATION ROOM" at 5:00 p.m. Eastern, right here on CNN.
ROMANS: All right. Still ahead, what do Warren Buffett's billionaire friends think of the idea to tax the rich? A lot more. We're going to ask one of them, Garrett Gruener, founder of Ask.com and a venture capital firm. He's going to join us live and tell us why he wants to give more of his money to the Treasury Department.
VELSHI: And guess which vintage rockers are getting into the wine bus now. How they are using their rockin' past to cash in. We'll tell you about that.
COSTELLO: They are the only ones who can afford it!
And space nerd alert. NASA's space shuttle crew is here in our studio. What was it like to fly on the very last flight of a 30-year shuttle era? Throttle up on this one.
It's 12 minutes past the hour.
(COMMERCIAL BREAK)
VELSHI: So not sort of a more morning show --
(CROSSTALK)
VELSHI: Kind of (ph) lonesome tonight? All right. Elvis Presley. Fans are gathering in Graceland today to remember the king, Elvis Presley. A candlelight vigil was held early this morning. Graceland hosted a week of events to commemorate the king's life. He died on this very day back in 1977. He was 42 years old.
COSTELLO: He was only 42?
VELSHI: Yes, but he was particularly unhealthy when he died, if you recall. That was his low point. I mean, he was very big, and --
ROMANS: When he died, I thought 42 was much older than I think 42 is now.
VELSHI: Right. well, gently (ph), we were a lot smaller. Right now, I think it's kind of around the perfect age.
(LAUGHTER)
ROMANS: Exactly the perfect age for you, Mr. Velshi.
The rock band, Kiss, signing on a performance of Michael Jackson tribute concert in Wales this October. Many Jackson fans, though, outraged are even revolting against the show. They say that Kiss frontman, Gene Simmons, criticized Jackson after his 2009 death, calling him a child predator.
VELSHI: But when you are the marketing machine that Kiss is, there is no better way to make up for having said something bad about Michael Jackson than bringing your marketing half to --
COSTELLO: What they said was pretty darn bad, but we'll see what happens.
VELSHI: It goes for an apology, don't you think?
COSTELLO: Probably. Money.
OK. Let's here AC/DC, shall we?
(SINGING) pick it up and move it
ROMANS: Makes me want to have a nice (ph) wine.
COSTELLO: A wine?
(LAUGHTER)
COSTELLO: Makes me want to have some hard liquor. Anyway, hard rockers, AC/DC putting out their own line of wine (INAUDIBLE). Among the varietal is Highway to Hell Cabernet Sauvignon, Back in Black Shiraz, and shook me all night long --
VELSHI: Are you kidding? Did you make that up or are they really going to call them that?
COSTELLO: No. I've made this cover, don't you?
VELSHI: Would you like another glass of you shook me all night long?
(LAUGHTER)
COSTELLO: The wines are only available in Australia, but who knows?
ROMANS: All right. Rob Marciano is in the Extreme Weather Center. Rob, you a beer man, a wine man? What is it?
ROB MARCIANO, AMS METEOROLOGIST: I don't discriminate.
(LAUGHTER)
ROMANS: I'd do it all.
MARCIANO: At times, I like to drink the good stuff, but, in the morning, it's certainly coffee.
(LAUGHTER)
MARCIANO: At least, it was yesterday. Check out some of the numbers right now as far as day time totals for rainfall we saw yesterday. Willow, New York 6. -- yes, that will drive you to drink -- with all the rainfall that they've seen across the northeast, and today is going to be another damp and dreary day if you've already haven't noticed it.
All right. Parts of Connecticut seeing almost five inches, and then, Northern New England also getting into the record books with 24- hour day time records. All right. Here we go. Rotating around this area of low pressure is way up here is some of this moisture that's been peppering much of upstate New York throughout the past couple of days. It will spin down into the more populated areas, and then, eventually, spin out, but it will hang around good enough time for today.
Also severe thunderstorms possible in the spots that we saw them yesterday except a little further east. Bismarck, North Dakota got hit pretty good yesterday with high winds and heavy rain. Really quiet across the south with the exception of Florida. They will see some thunderstorm at times, then, may delay you flying in and out of Miami or Orlando. The low clouds and low visibility in some patchy rain in Boston and New York will slow down some travel as well, and San Francisco, no rain expected, some cool morning fog.
Here is Gert, the tropical storm, did not get the hurricane status. So, this is the latest in the season that we've gotten through the G-storm and not had a hurricane. That's a record. So, we had a busy hurricane season, been a lot of quantity, but just not a lot of quality, and I suppose that's a good thing. This thing, we're watching here in the National Hurricane Center has a sign (ph) on it.
It's flared up here in the past couple of hours as far as convection goes, and it will head into the Western Caribbean. That's when we're going to have to start to worry about it. All right. Folks in just north of South Beach belt with some jellyfish, you know, you can get them this time of the year, but these were kind of big. What are the size of those? No tentacles. So, they don't normally sting. It may irritate you. And --
COSTELLO: Wow!
MARCIANO: Yes. they look bigger than -- you know, they look -- the bark is worse than the bite, I think, but it could look nice. I mean, imagine kind of just emerging from the surf there on Miami Beach with one of those wrapped around your head, around your shoulder?
(LAUGHTER)
MARCIANO: That would be a fashion statement.
COSTELLO: What if you stepped on it? Are you it wouldn't hurt? What if you stepped on it?
MARCIANO: Well, it depends how sensitive your tootsies are.
(LAUGHTER)
VELSHI: You just have such a positive attitude, Rob. Thank you.
MARCIANO: I try.
VELSHI: Yes.
MARCIANO: See you guys. VELSHI: All right. Minnesota Twins slugger, Jim Thome, hitting one into the record books. He belted his 600th career homerun against, sorry, Carol, the Detroit Tigers last night.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: High fly ball. Left field. Hit well. Young going back to the track, to the wall! It's gone! Jim Thome has become the eighth player in major league history to hit his 600th home run!
(END VIDEO CLIP)
COSTELLO: You got to love that, though.
VELSHI: Yes.
COSTELLO: He's a great guy.
VELSHI: Eighth player. Look at that. I mean, it was a two-run shot coming in the seventh inning. He had hit number 599 in an inning before. He's 40 years old. He becomes, as you say, the eighth player to join the 600th home run club. Only Babe Ruth did it in fewer bats and Carol's Tigers, they gave him a very, very warm reception for it.
COSTELLO: A standing ovation.
VELSHI: Yes.
COSTELLO: Tiger fans are the best.
VELSHI: As he deserves. Somebody actually tweeted me and say, you keep saying my Tigers, my Detroit Tigers. You know, does Carol own them? And I said, it's her uncle owns them.
(LAUGHTER)
VELSHI: Which is why she has such affinity to it given that's she not from Detroit.
COSTELLO: I wish.
VELSHI: Oh, don't be shy about it. Just tell them.
(LAUGHTER)
COSTELLO: Mr. Ilitch is my uncle? I don't think so.
(LAUGHTER)
ROMANS: All right. Talk about a wild ride. Take a look at the final acts of yesterday's NASCAR race in Watkins Glen, New York. That's David Ragan's yellow number, number six car, getting bump from behind. It ricocheted into the tire barrier, that kind of the track (ph), smashes into David Ragan's car which then goes airborne. Basically, a mess. Both drivers escaped without injury. Afterwards, a scuffle broke out between the driver who caused the crash and Ragan's teammate, Greg Biffle. (INAUDIBLE)
COSTELLO: I like when you said it's just a mess.
ROMANS: It was a mess.
VELSHI: It was like a pinball. I mean, normally, there was really just a lot going on there. Take a look at this. Bounces in. Bounces back to the other wall. Then, yes, airborne. To the other side.
ROMANS: Do you guys like NASCAR?
VELSHI: I don't follow it closely, but I've watched the race. I've been to Daytona 500.
ROMANS: It takes real dedication, because a lot of just gracing, and then --
VELSHI: Yes.
ROMANS: Stuff like that.
COSTELLO: Sadly, I watch for the crashes when no one gets hurt.
VELSHI: There you go.
COSTELLO: Just telling the truth.
(LAUGHTER)
COSTELLO: Now is your chance to talk back on one of the big stories of the day. The question we're asking this morning, is Warren Buffett's tax compromise good or is it just plain old politics? Now that we have to day to digest Buffet's plea to tax me more, please, it's time to ask that very question.
Buffett is largely a Twitter hero, but as far as Republicans are concerned, he's a shrill for President Obama. Buffett begs to differ. He's offering an alternative. Instead of raising taxes on Americans making $250,000 and up, he told Charlie Rose we ought to raise taxes on the very, very rich.
(BEGIN VIDEO CLIP)
WARREN BUFFET, CEO, BERKSHIRE HATHAWAY: We're also in the process under taxing the very rich. What I propose incidentally would not touch the taxes of 99.7 percent. I'm talking about 0.3 of one percent of the American public, but the people from a million dollars on up, I think, should be asked to share in a little of the sacrifice that we're all being asked to share it.
(END VIDEO CLIP)
COSTELLO: President Obama embraced the idea. Republicans did not. Senator John Cornyn tweeted. "For tax raising advocates like Warren Buffet, I am sure treasury would take a voluntary payment for deficit reduction." As in, hey, Mr. Buffet, just send the U.S. treasury a check.
Conservative blogs fired back, too. The Red Dog Report said, "Everybody knows that if tax hikes on the rich fails to solve our economic crisis which we know they will not, then team Obama can go back and ask for more, opening the door to a big tax hike on America's middle class. Never mind polls show most Americans favor taxing the rich more and many economists say spending cuts alone will not solve our debt woes."
So, the "Talk Back" question this morning, is Warren Buffet's tax compromise good or is it just politics? Facebook.com/americanmorning. Facebook.com/americanmorning. Ali does his hand up.
VELSHI: I'd like to do a "Talk Back."
COSTELLO: Which question, Ali?
VELSHI: Well, this blog that you just quoted Red --
COSTELLO: Red Dog.
VELSHI: They said, well, everybody knows increasing taxes won't solve our economic problems. Two entirely unrelated matters. Reducing debt and solving our economic problems are actually not nearly as connected as people think. We've had debt and deficits for a very long time, including in years when we don't have economic problems. So, this is the confluence and mixing up of events that gets very frustrating --
ROMANS: So, we now have a debt and deficit that such great portion of the size of our economy that becomes dangerous --
VELSHI: Right. If you set the bar, if you raise taxes and then our economic problems aren't solved, that must mean that raising taxes doesn't work or is bad for the economy. As I like to say, it is apples and shampoo.
COSTELLO: You're absolutely right. And if you look back through history, I mean, let's just take, for example, President Reagan.
VELSHI: Right.
COSTELLO: Because he cut taxes a number of -- I mean, raised taxes more than 20 times or more than 18 times.
VELSHI: And in many cases, the economy strengthened after it. It's not necessarily causal. And I think that's what people have to understand. It doesn't tax cutting or raising doesn't necessarily have an impact on economic performance immediately afterwards. Lots of things have an impact on economic performance.
COSTELLO: Yes. So, it will be interesting to see what people say.
VELSHI: Great comments coming in.
COSTELLO: Facebook.com/americanmorning.
VELSHI: We're taking a break. We'll be right back. It's 26 minutes after the hour.
(COMMERCIAL BREAK)
VELSHI: It is 28 minutes after the hour. "Minding Your Business" this morning. U.S. stocks are set to pull back at today's market open. Taking at a cue from European markets reacting to news that Germany's economy stalled in the second quarter. Right now, Dow futures trading down more than a hundred points. NASDAQ and S&P futures also trading much lower.
Some corporate earnings are starting to come out today. Home Depot, the world's largest home improvement chain, reported better than expected profits in the second quarter, fueled by demand for seasonal goods and storm-related repair materials. Not as rosy for the world's biggest retailer, though. Wal-Mart saw its sales fall almost a percentage point in the second quarter, making it the ninth straight quarterly sales drop in a row for the world's biggest retailer.
Still ahead, Warren Buffett is, once again, begging Congress to tax him and his rich friends more. So, what do his friends think of that idea? Well, we'll ask one of them after the break. AMERICAN MORNING coming right back. Stay with us.
(COMMERCIAL BREAK)
ROMANS: Warren Buffett is pleading with the White House to raise his taxes. The billionaire insists anyone making more than $1 million a year should be taxed at a higher late. Here he is last night on PBS's "Charlie Rose Show."
(BEGIN VIDEO CLIP)
WARREN BUFFETT, CHAIRMAN AND CEO, BERKSHIRE HATHAWAY: I decided to look around and see if any of my friends were being affected by the sacrifice, and they like me are enjoying the extremely low tax rates. And in the very high percentage of the cases the very rich are paying less in the way of taxes and the people to clean their offices.
(END VIDEO CLIP)
ROMANS: Buffett isn't alone. He has supporters like my next guest, Garrett Gruener, cofounder and director of Alta Partners, a venture capital firm, and founder of Ask.com. He joins us live from San Francisco. Welcome to the program.
GARRETT GRUENER, COFOUNDER AND DIRECTOR, ALTA PARTNERS: Good morning. How are you?
ROMANS: I'm great. Tell me, I'm curious, what is your tax rate and why do you want it higher?
GRUENER: The marginal tax rate I pay is something less than 35 percent, probably well less actually than 35 percent, which is the current top rate, which is much lower than it was in the Clinton administration and much, much lower than it was in the Kennedy and Eisenhower administration.
ROMANS: So the tax code favors people like you, and you say that that is simply not fair. We could raise some significant money by making very rich people pay a bigger share.
GRUENER: That's right. You know, one of the extraordinary things that Warren Buffett didn't say in his op-ed yesterday which I think is very important is that the upper percent got 23.5 percent of all the income in 2007. And the last time that happened was 1928. And I think that what happened next, you know, the financial collapse in both cases, is a direct result of the fact that things have just gotten out of whack.
ROMANS: Doesn't the top one percent pay, you know, more than 20 percent of all of the income taxes? I mean, you know, that is one of the things you hear from Republicans and your hear from conservatives, and other rich people who say don't tax me more. Don't tax me more. It is the top that is, you know, setting so much money into the American treasury.
GRUENER: Well, that's true that's what their argument is. And their argument goes on to say that economic growth is a function of the investment these people can make, and if you increase their taxes, that they will be less available for investment.
And the problem it just isn't true. As I say, back in the '50s, the marginal tax rate was 90 percent. In the '60s, it was 70 percent, and our growth rate was much higher than it is today. Indeed, during the Clinton era the marginal tax rate was 39 percent, and our growth rate was significantly higher than the essentially zero growth we had during the 2,000s. So the basic thesis just turns out to not be correct.
And I have to say what I do for a living is venture capital. I make investments in small technology companies, and I try to help them grow, and I have never once -- I literally mean this -- not once, ever made an investment decision based upon the marginal tax rate. It just isn't an important element of the investment decision.
ROMANS: So let's talk about, if we added 50 percent tax rate on income over a million dollars, this is basically what Buffett has proposed, it would bring in $340 billion over 10 years. You know, $340 billion over 10 years and running a deficit that is a trillion and a half a year right now. You just can't fix it by raising taxes on the top one percent alone. I think that is what some people say. They say, look, you need a lot more than just that. Do you agree? Do you need taxes going up for everyone or you need very big, big spending cuts?
GRUENER: Well, I think, you know, there is going to be a number of elements to the solution. We have to increase revenues. We do have to reduce spending. Certainly over the long haul. And ultimately, we have to make this budget balance, you know. Vice President Cheney was wrong when he said deficits don't matter. They do matter. And so getting -- really solving this deficit problem is essential.
However, what we have done is over and over again, reduced the taxes for those who are doing the best in this economy.
ROMANS: For you.
GRUENER: And it's a wrong choice economically -- for me, exactly. It's a wrong choice economically, and quite frankly, I don't I think it's moral either.
ROMANS: Senator John Cornyn tweeted "For tax raising advocates like Warren Buffett, I'm sure treasury would accept a voluntary payment for deficit reduction." Garrett, are you going to be sending your money in?
GRUENER: No.
(LAUGHTER)
GRUENER: You know, what I'm doing is I'm getting up at 5:00 in the morning to talk to folks like you.
You know, the U.S. government is not a charity. Taxes are the price we pay for democracy, and I think it's well worth paying for, but we have a conversation -- we need to have a conversation in this country about real shared sacrifice.
When we had two wars running under the Bush administration, the president said, I'm going to cut your taxes and you ought to go shopping. Well, that isn't shared sacrifice. And it isn't actually economically what we need either. We need to invest in the middle class and we need to invest in economic growth. And the only way to make that happen in part is increase the taxes on the upper one percent.
ROMANS: All right, Garrett Gruener, thank you so much. We will point out this president that cut taxes - extended those tax cuts for the very rich as well. So now it's two presidencies that own those. Garrett, nice to meet you. Thanks.
GRUENER: Thank you.
VELSHI: Coming up next, the last team to fly aboard a space shuttle. The crew of the space shuttle Atlantis is here in our studios live. It's 38 minutes after the hour.
(COMMERCIAL BREAK)
VELSHI: The final mission of space shuttle Atlantis -- we all watched as it touched down for the final time. You have to have no heart to have really not felt that. The crew walking out after a successful mission marking the end of NASA's shuttle era.
It really was a bittersweet moment for many people. It was a beautiful end to a program that has been going on for 30 years. But it's end of a program. Joining us now are some of the crew members from STS-135, all of the crew members that were in the shuttle, Commander Chris Ferguson, pilot Doug Hurley, mission specialist Sandy Magnus, and Rex Walheim. Welcome to all of you. Thank you for being here.
You are officially a part of history. This was the last mission. And I know when you landed, you were -- it was different for you. You've all been on shuttle missions before, but that must have been a little bit different. Tell me how it felt when you first touched down.
CHRIS FERGUSON, STS-135 COMMANDER: Well, of course, you have the task at hand, you have to land and roll out and think about this is it. We're going to have to say something profound and recognize everybody that did it. And then you have to get out of the orbiter. And that's really tough knowing you're the last one to leave an orbiter that actually was in space.
VELSHI: We call it bittersweet. Is it?
DOUG HURLEY, STS-135 PILOT: Yes. I think the term is overused but honestly, you do feel a bit of sadness the program ends, but, yet, excited of all the things we did over 30 plus years.
VELSHI: What do you tell people? When we are ten years away from this or 15 years away, and people say what was the big deal about the shuttle program, what would you tell them?
HURLEY: I got a couple of answers for them. You know, the Hubble telescope. The great pictures we continue to see and because the shuttle was there we serviced it and we launched it. And now the International Space Station which is awesome.
VELSHI: Sandy, what is your sense of what happens next? I know that is the big question on everybody's mind and I know NASA has things planned but space has been, for many people a dream and destination and that for the moment we don't have as clearly outlined.
SANDY MAGNUS, STS-135 MISSION SPECIALIST: Well, we are certainly in the middle of a debate on what exactly the destination is going to be.
But I'd like to everybody to pay attention what we are doing on the International Space Station. We have had people living there for 11 years now, and we will continue to do a lot of great work on the space station, a lot of great science, a lot of great technology development, technologies that we need to go to the moon or mars or an asteroid. And I think the whole portion is get out of lower orbits. Anywhere we go out of lower orbit is an excellent destination.
VELSHI: What do you all do now?
REX WALHEIM, STS-135 MISSION SPECIALIST: When we're not flying we have ground jobs in the astronaut office and some of us will help on the space station missions going on, others work to help new space suits, and other people will work on the next generation's launch vehicles. We talked about the new commercial vehicles. Those guys are going to be taking on a big role. And we're going to need help, and there's a lot of people, not just the astronauts, but all of NASA that know how to do this business and want to help out these new companies that are going to be coming online.
VELSHI: Chris, tell me the thing that you never get asked. I interviewed you guys when you were in space. I know lots of people interview you. What is the thing you'd love somebody to ask you about the shuttle program that you've never been asked, because you really want to tell them but nobody even knows to ask?
FERGUSON: I tell you what, it's an amazing experience. And launch, I think, is first and foremost, the most interesting aspect of it. For example, we had a launch hold at 31 seconds.
VELSHI: I remember that clearly.
FERGUSON: It's been years since that has happened. And what I tell everybody is you'd like to think the astronauts are busy moving switches and dials and they are getting ready to handle whatever it is to hold the launch at 31 seconds. In reality, we looked at each other and said, "I didn't know the clock stopped at 31 seconds."
(LAUGHTER)
FERGUSON: But we have got a great team at the Kennedy Space Center, and they knew exactly what the problem was, they rectified it. They launched. We had about a minute to spare, but we launched on time thanks to what they do. I think to answer your question, what I like people to ask me about is our launch experience. What are you actually feeling? What is going through your mind when this happens and that happens?
VELSHI: Because we see it and it's loud and it's fiery and it's big. What is it to you? By that point, you've been strapped into a chair for two to three hours on your back. What does that feel like?
DOUG HURLEY, ATLANTIS SHUTTLE CREW: Well, you're ready to do something else by that point for sure.
VELSHI: You'd like to be in space?
HURLEY: Yes, yes and once you come out of the nine-minute hold, usually that means you're --
(CROSSTALK)
VELSHI: Ready to go.
HURLEY: You're ready to go and, obviously, we had that little pickup at 31 seconds that the KSC folks handled -- handled great and then after that, you know, when the engine start, you just -- it's vibration at that point. You're really getting shook around pretty good and then -- and then, eight and a half minutes later, you're in space. So everything changes drastically from what you're used to the rest of your life. So it's just -- it really is difficult to describe, but it's -- but it's just -- it's just incredible to kind of take all that in.
VELSHI: Are you chatting on your way up? Or I mean, do you talk to each other or are you just kind of quiet?
MAGNUS: It depends. There is different phases of course, when you're right after the pad it's -- there are so much noise and vibration and it's sort of the very dynamics so you're really focused on -- are the computers doing what they are supposed to do and Doug is watching the engines and Bernie is watching the trajectory, Rex is kind of keeping an eye on the systems and I'm just along for the ride at that point.
But at -- and so you're not really saying much and then once the solid rocket booster separates it quiets down, there's a period of quiet and then you can start chatting a little bit. And then as the engine throttles in different place you focus back on that. There's a little of both going on but it's a -- a really unique experience and the experience changes with each launch.
VELSHI: Yes.
MAGNUS: Your first launch you're -- you're all excited and -- and part of your brain is focused on -- I'm going to space. I'm going to space. It's so cool. And part of your brain is focused on don't mess up. Don't mess up. And then you're second launch, you know, you've been through it, you had the experience. And now you can kind of sit back and relax a little bit and take in some of the sensations and it's -- and so it changes a little bit with each launch your experience does.
VELSHI: Who is the first person to mention food when you go up? Who is the first person who says send pack -- send me a pack of peanuts or something?
UNIDENTIFIED MALE: That's probably Doug.
HURLEY: Yes or Sandy. Yes.
VELSHI: It's great to see you guys. Congratulations. It's a real honor to have you here and -- and it was a real -- a real moment in history to watch that launch and that perfect landing.
HURLEY: I'm glad you were there.
VELSHI: My pleasure.
All right, Chris Ferguson and Doug Hurley and Sandy Magnus and Rex Walheim. Commander Ferguson -- well, to all of you thank you so much for -- for doing that for us.
Our morning headlines are up next. Its 47 minutes after the hour. (COMMERCIAL BREAK)
COSTELLO: Its 49 minutes past the hour. Here are your morning headlines.
The markets open in just about 45 minutes and right now, U.S. stock futures are down after new numbers this morning show slower than expected growth in Europe.
Today, Vice President Joe Biden heads to Asia and he'll spend most of his time in China talking up America's economy with that country's Vice President and other leaders. Biden will also visit Mongolia and Japan.
President Obama talking jobs again today on his trip across America's heartland. He'll attend an economic forum in Iowa. This is the second day of his three-day, three-state bus tour.
And social networking app FourSquare has scored a very high profile user. President Obama. The White House says he joined the location based social networking site to highlight places he visits and what he does there.
Jim Thome now part of baseball history. The Minnesota Twins slugger belted his 600th home run in Detroit last night; one of two home runs he hit in the game. Thome is just the eighth major leaguer to reach that milestone. Congratulations. It's awesome.
Elvis fans gathering at Graceland to remember the king. A vigil is held early this morning over Presley' grave to mark the 34th anniversary of his death. Elvis died at his Memphis, Tennessee mansion on this day in 1977.
And that's the news you need to start your day. AMERICAN MORNING is back right after this break.
(COMMERCIAL BREAK)
ROMANS: Everybody loves a good homecoming video between a soldier and their loved ones. But man, do we have one that's going to make you go "oh". Take a look, it's between a soldier and man's best friend.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Hey. Do you not recognize me?
UNIDENTIFIED FEMALE: Oh.
UNIDENTIFIED MALE: Oh, my gosh.
UNIDENTIFIED FEMALE: Oh. He's very excited. I think he remembers you.
(END VIDEO CLIP) VELSHI: All right, and this note was posted with the video. It says after nine long months apart, our dog Emmitt Thunder Paws is really happy to see his favorite person again. He smelled him in the house and then ran outside to greet him.
Dogs are awesome. Wow. That is -- that is doggie love.
ROMANS: Soldiers are awesome.
VELSHI: Soldiers are awesome, too.
ROMANS: That's cool, it's very cool. Very cool.
COSTELLO: That is a nice. It was a nice image.
Cancer survivor Jennifer -- Jennifer Giliberto is on a mission. Not only to embrace lives but to tell others who have been diagnosed they don't have to face the battle alone.
Chief medical correspondent Dr. Sanjay Gupta has her story in this week's "Human Factor".
(BEGIN VIDEOTAPE)
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT (voice-over): Four years ago, Jennifer's Giliberto's life was turned upside down.
JENNIFER GILIBERTO, CANCER SURVIVOR: I was told you have a brain tumor.
GUPTA: Her first surgeon did not want to operate and that didn't sit well with her.
GILIBERTO: I felt as if it's my body, this is my brain tumor that you say is in my head and yet, you won't treat me the way I want my course of treatment to be.
GUPTA: So she got a second opinion. And the new surgeon was willing to operate. The surgery went well and the tumor was out. A biopsy confirmed that the type of tumor she has will most likely come back.
GILIBERTO: I may know that, on average, I have ten years from diagnosis until it becomes malignant and I understand what that means. But I am going with the assumption that it might be sooner than later and that's ok.
GUPTA (on camera): In fact, planning to have another baby?
GILIBERTO: This decision to have a child was probably the most difficult decisions of all of the process. It was, by far, easier to accept the fact that I probably won't see my kids graduate from college than to decide to have a child.
What if you are that person that 25 years from now, your kids are getting married and you're still stable and you're living with regret for making a decision out of fear?
GUPTA (voice-over): Having overcome the initial obstacles posed by her cancer, Jennifer has decided to embrace life in other ways. In addition to being a mom to sons Tucker and Cooper, Jennifer has become a patient advocate sharing her experiences with others who also have brain cancer.
And she's a fundraiser. Jennifer has been raising money by participating in a race for research. This year, Jennifer could only participate in the walk because she and her husband decided to expand their family.
(on camera): In some ways equally impressive as this -- you decided to do this walk and you're -- you're pregnant.
GILIBERTO: I'm totally healthy aside for the brain tumor.
GUPTA (voice-over): Just two days after we sat down together, one week ahead of schedule, Jennifer gave birth to a healthy little girl named Harper.
Dr. Sanjay Gupta, CNN, Atlanta.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
VELSHI: New York city, good morning. It is 64 degrees and cloudy.
ROMANS: Is it raining?
VELSHI: Well, it's going to be. There are going to be thunderstorms here and 77. A lot of rain the last few days in the city.
COSTELLO: But there was a double rainbow and that made it all better.
VELSHI: Totally.
COSTELLO: Now, for your responses for our talkback question of the morning. We asked you this question. Warren Buffett who says tax me, tax me please. We ask the question, Warren Buffett hero or political opportunist. Here are some of your responses.
This from Ty. "Good but just politics as usual. Since all men are created equal and are supposed to have equal rights, why is income not simply taxed at one modest flat rate across the board, no exceptions, no exemptions, no loopholes for everyone?
ROMANS: Sounds reasonable.
COSTELLO: It does, doesn't it?
This from Rick. "It is a generous offer but does Buffett speak for his fellow multimillionaires? The problem I see with the proposal is that sadly, it doesn't recognize that while there is a whole boatload of pain in our present economic crisis, any plan that doesn't fairly distribute that pain over all of us but instead favors one or another protected group at the expense of another is a non-starter."
And this from Eric. "In my opinion, we, the American people, are running out of time. Warren Buffett's idea can help the economy if done right by pumping more private money into the economy. But in order for this idea to work, Congress has got to get their act together and start doing something."
Facebook/Americanmorning. Thank you so much for your comments.
ROMANS: All right. That's going to do it for us for none of us were attacked (ph) by Warren Buffett. One way or the other, that's going to do it for us for today. And the markets look like they're going to be lower today so we'll watch that in about 30 minutes.
Velshi: All right. Kyra Phillips takes it over now with "CNN NEWSROOM". Good morning Kyra.
KYRA PHILLIPS, CNN ANCHOR, "CNN NEWSROOM": Good morning, you guys.
