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American Morning
Obama's Plan to Reduce Deficit; Interview with Jay Powell, Former Treasury Undersecretary; Air Show Disaster; Supporters of Man on Georgia Death Row Claim his Innocence; Black in America, What It Means Today; TV's Best in Show; Anderson Cooper's Jersey Report
Aired September 19, 2011 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Good morning. I'm Carol Costello. President Obama has a message for this nation's millionaires: It's time to pay your fair share. How does the American public feel about taxing the rich more?
CHRISTINE ROMANS, CNN ANCHOR: DSK is going public. I'm Christine Romans. The former IMF chief opening up about the New York hotel maid who accused him of rape, discussing her motives, his fears, and his biggest regret on this AMERICAN MORNING.
COSTELLO: Good morning to you. Is it possible to have a happy Monday?
ROMANS: Yes.
COSTELLO: Yes, if the Lions won and the Tigers clinch, then it is.
ROMANS: So, you got it.
COSTELLO: It's like nirvana.
Good morning to you. It's September 19th. Ali has the day off.
ROMANS: This morning, President Obama proposes a new way to tackle the debt crisis: tax the rich. Under the plan, anyone making more than $1 million would pay the same percentage of overall taxes as the middle class.
COSTELLO: The plan is popular with most Americans and Democrats, but not so much with Republicans.
(BEGIN VIDEO CLIPS)
SEN. LINDSEY GRAHAM (R), SOUTH CAROLINA: When you pick one area of the economy and say, "We're going to tax those people, because most people are not those people," that's class warfare.
SEN. DICK DURBIN (D), ILLINOIS: Warren Buffett has been honest, and other people I know who have been fortunate in life and wealthy, has said for goodness sakes, you can raise my taxes if that will help this economy move forward.
(END VIDEO CLIPS) COSTELLO: Brianna Keilar joins us live from Washington.
So, Brianna, it seems like we have been fighting this same battle for -- oh, maybe 900 years now.
BRIANNA KEILAR, CNN WHITE HOUSE CORRESPONDENT: Overtax increases, yes. Certainly, the president's plan -- and we are expecting the president to unveil his plan this morning, Carol, in the Rose Garden at 10:00 a.m. Eastern -- is to call for $3 trillion in savings, in deficit savings over the course of 10 years. This is significantly higher than that congressional supercommittee, which their goal is $1.5 trillion over 10 years.
So, here's how it breaks down: $580 billion of this, White House officials tell us, is spending cuts -- some of that, Medicare and Medicaid. But half of the savings, the president is proposing, would come from tax increases on the wealthy, on corporations, and as you can imagine, Republicans have already said no way.
There's also over $1 billion -- or pardon me, over $1 trillion, $1.1 trillion, in war savings, factoring in the fact that the wars in Iraq and Afghanistan are winding down. And certainly the administration will be dinged by Republicans for that, as sort of budget gimmickry, although we have certainly seen this used on both sides when they are tabulating budgets. And then, also, $430 billion in savings from the interest. If you don't have to pay the debt, then you don't have to pay the interest, right? So that's where the savings would be.
But back to the idea of increasing taxes, expect the president to really talk a lot about something called the Buffett Rule. It is going to be, according to senior administration officials, sort of the guiding principles that when you have millionaires, they should be paying a percentage -- their tax percentage should be similar or higher than those who make less money than them. We have heard Warren Buffett say that he actually pays a smaller percentage of his income than his secretary, and that's something that the president is going to be certainly hitting a lot on.
COSTELLO: Ten-thirty Eastern Time. That's when the speech takes place. We'll carry it live here on CNN.
Brianna Keilar, thanks.
ROMANS: We want to bring in now, Jay Powell, treasury undersecretary under President George H.W. Bush. He's been giving us some great analysis on all of our debt negotiations for months now.
Jay, welcome back to the program.
JAY POWELL, TREASURY UNDERSECRETARY UNDER PRESIDENT GEORGE H.W. BUSH: Good morning.
ROMANS: So, you heard Brianna break it down. Most of this comes from high income households, when you look at the $1.5 trillion in new revenue. I think it's about 450,000 different taxpaying households. You got $80 billion for letting the Bush era tax cuts expire for the wealthy. And then, you cap their deductions, $40 billion more comes from capping their deductions.
Let's not talk about the politics of whether it's possible. But is this a way to cut our deficits and get the economy moving again?
POWELL: Well, certainly, if you leave the politics aside, it's a way -- $1.5 trillion in tax increases on earners who earn more than $250,000 family -- families who earn more than $250,000 a year would certainly make a significant dent.
But the issue really is the politics. This is the president's vision for what he would like to see happen. It's something that Democratic base will be very happy with, but not so much the Republicans.
ROMANS: To those people, the $250,000, we hear from Republicans that these are the job creators. We have seen -- you know, could this hurt job creation? Could this hurt a part of the economy that actually happens to be doing well right now, people who make a lot of money?
POWELL: Well, the tax increases don't kick in until 2013. So the argument would be that any pain would be down the road.
Look, this is -- again, this is the president's vision. It's a starting point. There's going to be a negotiation this fall on Capitol Hill at the committee. The supercommittee as we call it.
And this is the president's opening bid. As one of my Democratic friends said, we're not starting on the 50-yard line here. The Democrats are starting deep in Democratic territory. It's very high on Democratic priorities, which are tax increases on those making more than $250,000, and light on Republican priorities, which would be long-term reform entitlements.
ROMANS: Let's talk about these exemptions. And one of these exemptions, the president is proposing to cut the exception that hirers can claim on interest from investments in municipal bonds. Already this morning, you have people who are watching the muni bond world, who are concerned this is going to raise the cost for municipalities to borrow money, to do things like build schools and to improve infrastructure.
Are you concerned about anything like -- when you start taxing those high earners, what are the unintended consequences down the line?
POWELL: Well, that one in particular would raise financing costs for states and localities. And as you know, states and localities are under tremendous fiscal pressure right now. In fact, a big part of the president's stimulus plan is to give substantial amount of money to keep teachers and firemen and first responders employed in this time. And state and local governments are the largest employers in the United States, by the way, with 20 million jobs. So, it's very unlikely it seems to me that in this environment, you would see an action that would raise financing costs for state and local governments.
ROMANS: So, on the one end, trying to get money to state and local governments, on the other end, raising taxes on people who are giving money to state and local governments.
POWELL: Yes, that's right. If you limit the deduction for investors in municipal bonds, you're going to raise financing cost.
ROMANS: Right.
POWELL: It's going to cost more for states and municipalities. That's going to require layoffs and raise cost and higher taxes and spending cuts at the state level. And none of that will be helpful.
ROMANS: So, do you think the Buffett Rule, I mean, this is what's getting all the attention, because Warren Buffett says his effective tax rate is 17.4 percent and his employees pay 36 percent. Do you think -- do you think it's fair? Is this fair?
POWELL: Well, what it is, some high earners get lower tax rates because of capital gains. They make a substantial part of their income from capital gains. And the president strongly believes that a Warren Buffett or a person who earns a lot of capital gains should never pay an overall marginal tax rate is, you know, less than that of medium income earners. So, 15 percent for capital gains, 35 percent for high income earners.
And Buffett says he pays something in the high teens. He says it's not fair. You know, it's very hard to make the other side of the argument that the Republicans make, is you need to encourage capital formation because that's what drives investment, that's what drives growth and that's what drives job creation.
So, it's a tougher argument from the Republican side. The president will come back to this again and again and again, because he does believe that the public supports him in this.
ROMANS: Well, I'll tell you, put on your boxing gloves, because as you say, it's just the starting point.
Jay Powell, thank you so much. Nice to see you.
POWELL: Thank you. Nice to see you.
ROMANS: Again, the president unveils his plan this morning in the Rose Garden, 10:30 Eastern, right here on CNN. And we think this is just the beginning.
COSTELLO: It's a showdown over the same old thing that's been a showdown since, what, 2008?
ROMANS: There's money and politics, and you put them together, and it gets ugly.
COSTELLO: A developing story to tell you about out of England this morning. Police arresting seven people in the city of Birmingham, at an anti-terror operation. Six men were arrested overnight, and a woman was taken into custody this morning for failing to disclose information about an act of terror. Police are not providing any other details other than to say these arrests were necessary to ensure public safety.
ROMANS: The Pakistani Taliban claiming responsibility for a deadly car bombing at the home of a senior police official in Karachi. Eight people were killed, including six officers stationed at the house and a mother and a child walking nearby.
The group's intended target, though, is safe. A spokesman says the attack is meant as a message to officials who work against the Taliban and work alongside the U.S.
COSTELLO: The future of the Middle East could be decided in New York City this week. World leaders are converging on the Big Apple this morning for the kickoff of the U.N. General Assembly. President Obama and Secretary of State Hillary Clinton will be on hand. And there's a showdown looming, I'm sure you've heard about it, with the Palestinians determined to seek U.N. membership and statehood, and the U.S. vowing to block their attempt.
ROMANS: You know, Ahmadinejad will be there, of course. And a lot of people want to know what's going to happen to those two hikers after an agonizing two-year wait. Josh Fattal and Shane Bauer will have to hold on a little bit longer. The lawyer who is trying to get the American hikers freed from the Iranian prison says he hasn't been able to get a signature on the bail papers yet because a judge is on vacation until Tuesday.
The Iranian president, as we said, said that last week the hikers could be released in a couple of days. He should be in New York either today or tomorrow for the U.N. General Assembly.
COSTELLO: For the first time since his arrest in May, Dominique Strauss-Kahn is telling his side of the story publicly. The former IMF chief breaking his silence in an interview with French television, calling his encounter with a New York City hotel maid a moral failing on his part, insisting there was no violence and no sexual assault.
(BEGIN VIDEO CLIP)
DOMINIQUE STRAUSS-KAHN, FORMER INTERNATIONAL MONETARY FUND CHIEF (through translator): You need to read carefully the report of the prosecutor. What does it say? It says that Nafissatou Diallo lied about everything -- not only about her past but about the facts. The report says that she gave so many different versions of the facts that the prosecutor could not believe it any longer.
I was afraid, very afraid. When you get stuck in this judiciary machine, it's like being in a meat grinder. I had the feeling of being stomped on, humiliated before even being able to say a word.
(END VIDEO CLIP)
ROMANS: Throughout his ordeal, Strauss-Kahn's wife, Anne Sinclair, has remained by his side. Here's what he had to say about her loyalty.
(BEGIN VIDEO CLIP) STRAUSS-KAHN (through translator): She is an exceptional woman. I wouldn't have persisted through all of this if she hadn't been there.
I am incredibly fortunate to have her by my side. I have hurt her. I realize this. I regret this.
You know, she wouldn't have stood by me from the very first second this happened if she had not known I was innocent.
(END VIDEO CLIP)
ROMANS: Now, the interviewer, I'm told, is a friend of his wife, Anne Sinclair. I mean, it's a very tight group. His wife is a presenter or a famous interviewer in France as well.
COSTELLO: There's a fascinating article about her. I think it was in "New York" magazine. And you kind of understand where she's coming from in her staunch support of her husband. But it's an unusual marriage.
As for Dominique Strauss-Khan's political future, the man who was once considered a front-runner for the president of France now says he has more simple aspirations.
(BEGIN VIDEO CLIP)
STRAUSS-KAHN (through translator): I told you I am a candidate of nothing. I am going to rest and reflect. I am going to take a time to be with my friends and family. Take the time to think.
But I spent my whole life in trying to be useful to the public. And we'll see.
(END VIDEO CLIP)
ROMANS: All right.
Up next, crowds watch in horror as a vintage airplane slams into the ground at the Reno air show. What went wrong? Investigators say they have now found critical evidence in the deadly crash.
COSTELLO: And surprising news about Indianapolis Colts quarterback Peyton Manning. Reports he's had a controversial stem cell procedure, one not approved in the United States. So, he had to go to Europe to do this. He had that procedure done on his injured neck. We've got more details for you.
ROMANS: Plus, who won big at the Emmy Awards? And what was this year's big surprise?
It's 12 minutes after the hour.
(COMMERCIAL BREAK)
ROMANS: Investigators say they have found critical evidence about what led to an air show disaster in Reno, Nevada. The NTSB planning to analyze parts of the plane's tail for clues about what may have gone wrong. At least nine people were killed, including the 74-year- old pilot. It was actually hard to watch that video. I mean, it happened so quickly.
Dozens were injured. I mean, thousands watched in horror as this T51 Mustang on Friday suddenly nosedived toward the grandstand (ph) climbing like a missile in the tarmac, blew to pieces. Investigators say there was a camera and data recorder onboard that could help determine what caused this disaster.
You know, they're also combing through wreckage of dozens of amateur video clips to try to figure out why the plane suddenly went out of control. One of the survivors who was just 20 feet from the crash site is now talking about what he remembers.
(BEGIN VIDEO CLIP)
ED LARSON, AIR RACE SPECTATOR: The thing crashes right behind me, and I get -- all I remember is I'm trying to run, and I see stuff coming. And then, that's the last Thing I remember. It just makes you appreciate to be alive. And that's the first thing I can say, is that, you know, I got extremely lucky.
(END VIDEO CLIP)
ROMANS: More of the nine people killed on Friday's crash were identified yesterday. Reno's mayor says it's the first time in 40 years that a visitor has been killed at the air show, but several pilots have lost their lives.
CAROL COSTELLO, CNN ANCHOR: Twenty pilots have lost their lives over the course of a few decades because -- in this air show. So, now, they're kind of looking into, should we hold it next year? Should we try to wait, you know, to see what exactly caused this plane to crash before moving forward?
ROMANS: Is it worth the risk?
COSTELLO: Is it worth the risk? You know, because in West Virginia, the day after that crash, another pilot died at an air show.
ROMANS: Yes.
COSTELLO: So a lot of questions to answer this morning.
Earlier on AMERICAN MORNING, we spoke to Mark Rosekind from the National Transportation Safety Board about the speed and the drama at these races and the risks taken by the pilots and the people watching.
(BEGIN VIDEO CLIP)
COSTELLO: This was a World War II era plane, and it was souped up. I mean, the pilot said it could go really fast. He was trying something that he'd never tried before. This plane could travel up to 500 miles per hour. Is that too fast for this type of plane? MARK ROSEKIND, NTSB BOARD MEMBER: This is actually pretty classic air race. They can fly at speeds, as you've pointed out, up to 500 miles per hour, and sometimes, at an altitude of 100 feet, but we se that happening throughout many of these air races.
(END VIDEO CLIP)
COSTELLO: Kind of a souped-up version. There was modern technology onboard that plane, but wow. The age of the pilot is also going to be taken into account, because he was 74 years old.
By the way, Rosekind also told me the NTSB would be looking at this race and other races at Reno to determine whether they're getting too dangerous to fly, because, you know, there are regulations, but certainly, not strict regulations from the FAA in regards to these air shows. So, that something that officials will be sitting down and taking a look at.
ROMANS: All right. Rob Marciano is in the Extreme Weather Center for us this morning. Good morning, Rob.
ROB MARCIANO, AMS METEOROLOGIST: Good morning, guys. The cool air continues across the east coast, and really, we don't see a dramatic warm-up going forward. A couple of areas of rain in some spots that we need it, notably Texas. San Antonio, Houston, and Austin got some much needed rainfall last night. Still raining in parts of Houston as cluster of thunderstorm makes its way down to the south.
Memphis to Nashville, eventually across much of Dixie, we'll see some thunderstorms. And then, with the next front, Chicago, Detroit, Cincinnati, Cleveland, those are going to be the problem areas if you are traveling this afternoon. The thunderstorms in Houston are beginning to move up.
Front number one brought us a cool, very fall-like air across the area this past weekend. Front number two, we've got another front that's coming into town as we go through time. So, temperatures, really, are not going to rocket back up to the 90s and 100s. Besides, we're getting close in October, so that's just going to be harder to do.
Seventy-two degrees in Chicago, 79 in Kansas City for that mixed front comes through. It will be 66 degrees in New York City and 72 in D.C. Still, of course hurricane season over the past two weeks have been very, very quiet, thankfully. This item up for bid here in the central Atlantic. That's a good chance of becoming a tropical depression or tropical storm, but this time of year when they are this far out, a difficult time getting all the way towards the U.S.
So, we'll keep an eye on it, but not too concerned about that. More concerned about what may be happening on Friday. An old satellite, an old climate satellite, upper atmosphere research satellite, is scheduled to come back into earth in a fiery mass on Friday. The problem is we don't really know where. Basically, anywhere from 57 degrees north to 57 degrees south, and that's pretty much Canada to South America. We may see some bits of this thing flying around, and potentially, hitting on areas that are populated. Stay tuned. Meanwhile, some very cool outer space video. Not so much outer space, but orbital space video from the ISS. Check it out. Time lapse photography. City lights. You can even see in some spots the lightning through the clouds. Cool, cool stuff from the International Space Station.
It kind of lets you feel what it's like to fly at 17,000 miles an hour. There's a lightning just about 300 miles above the surface of the earth. At this point, the International Space Station is scheduled to remain in orbit and not come down in a fiery ball of flames later this week, but we'll keep you updated on this other satellite that could be an issue.
COSTELLO: What?
ROMANS: The precision of that forecast makes me feel so much better.
MARCIANO: yes.
ROMANS: Somewhere from Canada to South America.
MARCIANO: Yes. They give it a one in 3,000 or so chance of hitting somebody.
COSTELLO: Oh! Oh! We'll wear our crash helmet.
ROMANS: I'd buy a lottery ticket for that.
COSTELLO: For what?
ROMANS: I'd buy a lottery ticket for a one in 3,000 chance.
COSTELLO: Thank you, Rob.
ROMANS: Thanks, Rob.
COSTELLO: Now it's your turn to talk back on one of the stories of the day. The question for you this morning, why is evolution such a touchy subject?
What new book is too hot to print in the United States? No, not the one about Sarah Palin. That's coming out tomorrow. It's a children's book called "Evolution: How We and All Living Things Came to Be." According to the author, Daniel Loxton, no American publisher would touch it fearing the controversial topic would be a tough sell.
But in Canada, this evolution book for children is a hit. It's been nominated for several literary prizes. It just goes to show Charles Darwin's theory of evolution was published way back in 1859, and it's as controversial now as it ever was. Even the presidential candidates are weighing in.
(BEGIN VIDEO CLIP)
GOV. RICK PERRY, (R) PRESIDENTIAL CANDIDATE: It's a theory that is out there. It's got some gas.
JON HUNTSMAN, (R) PRESIDENTIAL CANDIDATE: When you call into question the science of evolution, all I am saying is that in order for the Republican Party to win, we can't run from science.
MICHELE BACHMANN, (R) PRESIDENTIAL CANDIDATE: Hundreds and hundreds of scientists, many of them holding Nobel prizes, who believe in intelligent design.
(END VIDEO CLIP)
COSTELLO: Despite what Michele Bachmann says, today, the vast majority of scientists accept evolution as fact.
(BEGIN VIDEO CLIP)
RICHARD LEAKEY, TURKAN BASIN INSTITUTE: People talk about the theory of evolution, therefore, they assume that that scholar is a theoretical object. That skull is a fact. Every skull in this room is a fact. Those facts are not accounted for in the biblical account.
(END VIDEO CLIP)
COSTELLO: The courts have squashed efforts to have alternative theories like intelligent designs taught in schools, ruling ahead (ph) more to do with religion than science, but many Americans are still skeptical of evolution. In the latest CNN/ORC poll, 41% think evolution is false or likely to be false.
So, the talk back question today, why is evolution such a touchy subject? Facebook.com/americanmorning. Facebook.com/americanmorning. I'll read your comments later this hour.
ROMANS: All right. Up next, a check of the morning markets.
Plus, Swiss banking giant, UBS, oh, it says losses from that rogue trader are even bigger than first thought. It's 23 minutes after the hour.
(COMMERCIAL BREAK)
ROMANS: Welcome back. It's 26 minutes after the hour. "Minding Your Business" this morning.
European markets are down sharply overnight. Growing concerns today that Greece will not do what it needs in order to get a next bailout package from the European Union. The Greek government held an emergency cabinet meeting over the weekend to discuss new measures to bring the country's budget deficit in line.
President Obama will unveil his plan to cut this nation's budget deficit in national debt today. It includes $3 trillion in cuts over 10 years. Much of that will come from higher taxes on people earning more than a million dollars and large corporations. That also letting the wars expire and letting the Bush tax cuts for the very wealthy expire, too. Will the fed have some sort of short-term stimulus to boost the economy? Federal Reserve chief, Ben Bernanke, will lead the fed's open market committee meeting tomorrow.
U.S. stock futures for the Dow, NASDAQ, and S&P 500 are all trading sharply lower ahead of the opening bell. The focus again this week will be on Europe's handling of the growing debt crisis there.
$2.3 billion, that's the new number Swiss Bank UBS says was lost due to a rogue trader. The bank now says the loss was from unauthorized trading on several stock futures account traded at S&P 500, Dax, and Euro stocks over the past three months. French authorities have arrested a 31-year-old man for fraud and false accounting.
Up next, as the execution date approaches for death row inmate, Troy Davis, support for him is growing. A look at his case now attracting international attention, next. AMERICAN MORNING back after the break.
(COMMERCIAL BREAK)
COSTELLO: It's 30 minutes past the hour. Good morning to you. A developing story to tell you about out of England this morning. Police arresting seven people in the city of Birmingham in an anti- terror operation. Six men arrested overnight, and a woman was taken into custody this morning for failing to disclose information about an act of terror. Police are not providing any other details other than saying these arrests were necessary to ensure public safety.
ROMANS: Eight people were killed in Karachi, Pakistan, overnight when a suicide bomber rammed a truck full of explosives into the home of a senior police official. The Pakistan Taliban is claiming responsibility. A spokesman says the attack serves as a message to officials who work against the Taliban and alongside the U.S.
COSTELLO: The Transportation Security Administration, the TSA, firing 28 employees at Hawaii's Honolulu international airport. The move comes after an investigation revealed several screeners were not checking bags for explosives before putting them onboard planes. In addition to the firings, the TSA also suspended 15 people.
ROMANS: Investigators have now recovered part of the tail of that vintage plane that plunged into spectators during an air show in Nevada Friday. Nine people were killed, including the pilot. The NTSB says there was a camera and a data recorder onboard. It could help determine exactly what caused the crash.
COSTELLO: How far did Peyton Manning go to try to play this year? Europe. FOX News reporting that the colts quarterback travelled overseas for stem cell therapy that is not yet used or approved here in the United States. That happened after two surgeries on Peyton's neck did not get rid of the pain. He since has had a third surgery and missed the first two starts of his 14-year career and the Colts are hurting without him. They are zero and two without Peyton Manning.
ROMANS: Today in Georgia, the state parole board will decide whether to intervene in the execution of Troy Davis. He is set to die Wednesday for the murder of a policeman 20 years ago.
COSTELLO: Davis maintains his innocence. Most of the witnesses who testified against him have now changed their story about the murder. Our David Mattingly is live in Atlanta outside of the Georgia capitol building. When does the hearing get underway, David?
DAVID MATTINGLY, CNN CORRESPONDENT: About a half hour from now. And this is the time that Troy Davis will be able to make his final arguments about whether he should live or die. This pardons and parole board has the authority to decide if he should be taken off death row and his sentence commuted to life in prison or life without parole.
This board has heard his case several times before. The last time they denied him clemency. And in their 30-year history, they have never gone back on a decision like this. But his supporters -- and there are hundreds of thousands of them across the globe -- his supporters are hoping that three new members of this board, who will be hearing these arguments for the first time, might change this board's decision and actually allow Troy Davis to get off of death row.
He is scheduled to be executed Wednesday evening here in Georgia, but this case has been going on, being tried in the courts and in public for the last 20 years. Davis has exhausted every single legal appeal that he has, and this board is his last hope to get off of death row and to escape execution.
COSTELLO: David Mattingly, thank you, from Atlanta. When the hearing begins, I know you'll be listening to the proceedings and tell us what happened later. Thank you so much, David.
ROMANS: In today's morning opinion, it's all about jobs and the economy, surprise, surprise. Texas Republican Senator Kay Bailey Hutchinson says in an opinion piece in "Politico" that the president needs to create a pro-business environment in America for the economy to get back on track. She writes "Looking forward we need to focus on bringing down our debt, reforming our tax code, reining in burdensome regulations, and above all, steps that would create much needed jobs."
The "New York Times" Paul Krugman equates the idea of slashing spending though, and deficit reduction to help the economy, he equates it to bleeding the patient. His prescription from jump-starting the economy "For the time being we need more, not less government spending, supporting by aggressively expansionary policies from the Federal Reserve and it's counterparts abroad."
And Bloomberg zeros in on Obama's plan to reduce the tax exemption for high earners on interest from municipal bond investment, quote, "That would mean higher taxes, more expensive services, and a lower propensity for local governments to undertake capital project."
In other words, it won't just be millionaires and billionaires footing the bill. It would be everyone. Just a sampling there.
COSTELLO: Just a sampling. And the president speaks of course at 10:30 eastern time, when he is going to present this package, which includes the Buffett rule, which is a tax on millionaires, or I guess upping their taxes.
Up next, the state of race -- what does it mean to be black today? We're sitting down with journalist and author Toure to discuss his book, "Who's afraid of post blackness"? It's 35 minutes past the hour.
(COMMERCIAL BREAK)
ROMANS: Good morning, Atlanta friends. It is cloudy right now and 64 degrees. But you're headed for a beautiful high, 78 today.
COSTELLO: Our next guest is a veteran journalist and author who is tackling a fairly weighty subject in his new book. It's called "Who's afraid of post-blackness?" It offers his take on what it means to be black in America in 2007. Toure joins us now. Nice to see you, again.
TOURE, AUTHOR" WHO'S AFRAID OF POST-BLACKNESS?": Nice to see you again.
COSTELLO: I love the dedication for this book to anybody who doesn't feel black enough, whatever that means. Did you figure out what it means?
TOURE: Well, I mean you see a lot of people say you're not doing it right, you're not black enough, you're acting white. And what I want to do is say to everybody is that game is done. That game is old and pointless. And everybody can be black the way they want to be, just like you can be a woman or a person the way that you want to be. And there's no right for anybody else to come along and say, you're not doing it right.
COSTELLO: That's right. You have to act like a white person, whatever that means. No one ever questions whether anyone is white enough. It's interesting because you explain in the beginning of the book that you use black with an upper case b and white with a lower w, and your explanation was pretty telling about what the two experiences are in America.
TOURE: Black to me represents like a nation, like you might come from Italy, Germany, whatever. So I want to capitalize it so it represents being a nation sort of thing. To me, white doesn't have the same sort of thing. You represent ethnically towards other things.
COSTELLO: Right. I consider myself an Italian-American. I never just say I'm a white person. Although some people do in America, right?
President Obama even had that problem when he was running in 2008, that he wasn't black enough. You've had the same experience.
TOURE: Sure.
COSTELLO: You went to a white school in Boston. TOURE: Yes.
COSTELLO: Did you grow up in a white neighborhood?
TOURE: We were the only black family when we moved in. But, see, it's like you are hyperaware of being black and being the only black family in the neighborhood.
COSTELLO: Yet your friends said, oh, you're not black.
TOURE: Well, this at a time when I was living in the black house as a black studies major, had a black med school girlfriend, I was the editor and founder of the black student newspaper on campus. So you see, it's like you're taking a tiny part of me. I don't like the way that you pronounce those words, and I'm going to say you're not black enough. I don't like the way you walk, but you're ignoring all this other stuff that are real and true.
COSTELLO: So why do people do that?
TOURE: Well, you know, there's a lot of reasons. And some of it goes back to slavery, and some of it goes back to not wanting people to identify with the oppressor or the enemy or whatever, old, anachronistic concepts concepts.
I think we need to let each other be the way that we want to be. There's 40 million black people, and 40 million ways to be a black. And that's how we have to look at things.
COSTELLO: As far as a black person saying to you you're not black, is that because some whites are uncomfortable with African-Americans and that's sort of a way to ignore that part about you?
TOURE: I think that some white people have a narrow conception of what it means to be black. This is what it is. And somebody who is living outside of that may say, well, you're not like the other ones, you know. And they may think it's a compliment to say, well, you're a good one or you're easier to deal with than the other ones. And it's a total insult, and you should never say that sort of thing, because, again, the freedom to be whoever you want to be.
COSTELLO: I know. That just reminds me when people say, I have black friends. Or I have gay friends.
TOURE: One of the things we explore in this is the impact of racism on black people today and throughout history. And I interviewed 105 people for this book, Skip Gates, Jesse Jackson, Governor Paterson. And talk about what is the most racist thing that ever happened to you. And it's really fascinating. Jesse Jackson cried as he told me his story. And these are incidents that are really, really focused on people's lives. Like really defines who they end up becoming.
COSTELLO: Sure.
TOURE: Really powerful stuff. ROMANS: So here you have the first black president ever, and the highest unemployment rate for African-Americans since 1984. And you even say that, and some people say, don't blame him, it's not his fault. And it isn't. And you have other people say those two things are completely unrelated, and they are, except there is this symbolism of where we have come and to the highest office in America, yet we still have this huge intractable problem.
TOURE: Well, it is linked in this way, that Barack Obama cannot be seen to be doing something special for black people, right? So even if Bill Clinton or George Bush saw black people having a special problem, I'm going to reach out and help them, that would be magnanimous. For Barack Obama to make a special outreach to black people, oh, see, he is a black president. He is giving them something special. We can't do that. And we talk about it in the book --
COSTELLO: But he is a black president.
TOURE: But he is a president, right? And he is not doing it in a black way.
COSTELLO: But on the other hand, the chairman of the Congressioanl Black Caucus, Congressman Cleaver, had an op-ed in the "Miami Herald," and aid that if Bill Clinton were in the White House and the same economic conditions existed for black Americans, there would be a march on the White House. But we don't want to march because we don't want to fuel the hatred that is already out there for Barack Obama." What does that say to you that Congressman Cleaver would write something like that?
TOURE: Well, he knows that a black politician in particular cannot be seen to reach out to the black community in particular. And they have to have that moment where they say I'm independent of the black community.
When Barack Obama comes out and says, everybody pull up your pants. And they show you -- he shows you right away, I'm over here and I'm willing to spank them when necessary.
COSTELLO: Right.
ROMANS: I love it. "Who's Afraid of Post-Blackness?" It's always intriguing to write and read about race in this country, even --
(CROSSTALK)
TOURE: Yes.
ROMANS: -- even today, you know. Great stuff, Toure, it's really nice to see you. Welcome to the program.
TOURE: Thank you. Thank you.
COSTELLO: Best of luck for the coming --
TOURE: Thank you. ROMANS: Thanks.
COSTELLO: All right, morning headlines next including why protesters are gathering on Wall Street today.
Also ahead, the big winners from the Emmys, and a few surprises during the big night. Well, maybe one.
It's 45 minutes past the hour.
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COSTELLO: It's 46 minutes past the hour. Good morning. Here are your morning headlines.
Today, President Obama rolls out a new deficit reduction plan. It includes cuts in Medicare. And a new high tax rate for millionaires, something Republicans oppose. You can see the President talk about his new plan this morning at 10:30 Eastern.
U.S. markets open in just about 45 minutes. Right now, stock futures are trading sharply lower ahead of the opening bell. The focus again this week will be on Europe's handling of the growing debt crisis over there.
More protests expected down Wall Street today. Hundreds of people gathered over the weekend in protest of the big banks and corporations and their role in our weak economy. So far, demonstrations have been peaceful.
World leaders and diplomats converging on New York today for the start of the U.N. General Assembly. The showdown everybody is watching, the Palestinians seeking U.N. membership and statehood with the United States vowing to veto those requests.
And Dominique Strauss-Kahn is telling his side of the story publicly. The former IMF chief breaking his silence in an interview with French television, calling his encounter with a New York City hotel maid a moral failing on his part, but insisting there was no violence and no sexual assault.
Investigators have now recovered part of the tail of that vintage plane that plunged into spectators during an air show in Nevada. That tail part may have been the problem. Nine people were killed, including the pilot.
A new report says Colts quarterback Peyton Manning travelled to Europe for stem cell therapy on his injured neck in an attempt to get back on the field. That stem cell procedure not yet used or approved in the United States. Manning still needed a third surgery and missed the first two starts of his 14-year career.
And Lexi Thompson is now the youngest golfer to ever win an LPGA Tournament. The 16-year-old Floridian fired a two under par 70 for a five-stroke victory at the Navistar LPGA Classic, the high school junior pocketing $195,000. That's the news you need to start your day. AMERICAN MORNING is back after a break.
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ROMANS: New York City, sunny and only 55. Later today, about 66 degrees.
COSTELLO: Oh. It's a beautiful day, though, isn't it? Welcome back.
The television industry honoring its own last night at the 63rd primetime Emmy Awards.
ROMANS: ABC's "Modern Family" took home five Emmys, including one for best comedy series. The actors who played "Modern Family" couple Claire and Phil Dunphy now with matching trophies. Julie Bowen and Ty Burrell won Emmys for best supporting actress and actor in a comedy.
COSTELLO: In the best drama category, history was made with AMC's "Madmen" winning top honors for a fourth straight year. It's just the third series to pull that off following the "West Wing" and "Hill Street Blues".
ROMANS: All right. The show featured an awkward Charlie Sheen moment. Really, is there any other kind? It was an awkward Charlie Sheen moment. The former "Two and a Half Men" star took the stage with a message for the current cast of the show that gave him the boot.
(BEGIN VIDEO CLIP)
CHARLIE SHEEN, ACTOR: Before I present outstanding lead actor in a comedy series, my old category, I want to take a moment to get something off my chest and say a few words to everybody here from "Two and a Half Men." From the bottom of my heart, I wish you nothing but the best for this upcoming season.
(END VIDEO CLIP)
ROMANS: The new season of "Two and a Half Men" premieres tonight.
COSTELLO: I think he is looking for a job.
ROMANS: I think this is part of a long run PR campaign to rejuvenate his image. You think?
COSTELLO: It's so -- yes. There's the Charlie Sheen roast that was on. I didn't watch. Maybe it's been on already. I don't know. But they killed his character off in "Two and a Half Men," didn't they?
I have never watched that show. I'm the only person in America apparently.
ROMANS: I watched it once on an airplane. It was good. The writing was unbelievable. And I will say, it was the writing not the acting, that I thought was so amazing. COSTELLO: Well, we'll see if Ashton Kutcher does as well as Charlie Sheen.
ROMANS: Also, "30 Rock" star Alec Baldwin was a no show last night. He actually taped a bit for the Emmy open playing the president of television but when Fox cut his joke about Rupert Murdoch in the News Corp hacking scandal, Baldwin pulled out in protest. He was replaced in the opening by Leonard Nimoy.
COSTELLO: Leonard Nimoy, really?
The best lead actress in a comedy went to a newcomer Melissa McCarthy. Oh I love her. She plays on "Mike and Molly." And in a memorable moment, her friends and some of her co-stars ran up and gave her that tiara and of course the bouquet of flowers. The ladies competing in the category did a pageant spoof. As I said, they went onstage when their names were called and crowned McCarthy the winner.
ROMANS: All right. A pair of Oscar winners now have Emmys in the trophy case. Martin Scorsese won the best directing Emmy for HBO's "Boardwalk Empire". This critically acclaimed series was shut out in the acting categories.
COSTELLO: I have to start watching something other than football games.
ROMANS: Carol, I don't know how you watch so much football, we get up so early.
COSTELLO: Oh, man. Yesterday, you didn't watch football?
ROMANS: No.
COSTELLO: You are un-American.
ROMANS: I was working in the yard.
COSTELLO: Working in the yard.
I watched baseball until 1:00 a.m. on Friday. I was almost up 24 hours. The Tigers clinched, baby.
ROMANS: Oh, Carol.
All right. The other Oscar winner Kate Winslet is now an Emmy leading lady. She won last night for best actress for her role in the HBO miniseries "Mildred Pierce."
COSTELLO: One of the most depressing miniseries ever. I did watch that. And that was depressing.
CNN's own Anderson Cooper -- he actually did a fake news report on the Emmys last night. Talking all about New Jersey. Emmy host and "Glee" star Jane Lynch starred in this sketch.
(BEGIN VIDEO CLIP) ANDERSON COOPER, CNN CORRESPONDENT: New Jersey is everywhere. But who's behind this explosive trend?
JANE LYNCH, ACTRESS: Thanks to me, now 50 percent of all television is set in Jersey. "Cake Boss" Jersey; "House" Jersey; "Sarah Palin's Alaska," Jersey.
COOPER: Her greatest success was when she took eight at-risk youths and made them stars.
LYNCH: Why do I do what I do? Because watching these kids is like watching the Cirque Du Soleil. Freaking beautiful. Just like Jersey.
Watch out, Hollywood. Because Jersey is taking over.
(END VIDEO CLIP)
ROMANS: She is funny in everything she does.
COSTELLO: She looks like Cher. She does.
ROMANS: She's great around the acrylic nails; it's classic Jersey. Nice.
COSTELLO: Definitely so.
Coming up next, "Talk Back" question of the day. The question this morning, why is evolution such a touchy subject? We'll read through some of your hundreds of responses. It's five minutes till the top of the hour.
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COSTELLO: Good morning, Washington.
ROMANS: Carol's mesmerized by the picture.
COSTELLO: I was. It was so beautiful. And I was reading through our responses to the "Talk Back" question. But it's cloudy and 63 degrees in Washington with a high of 72.
Good morning, my Washington friends. I'm sorry about that.
ROMANS: Welcome back. And it's at the White House this morning that President Obama will lay out his vision for reducing our deficit and living within our means. It's a plan that includes raising taxes on people who make more than $1 million a year. You can see the President's speech this morning at 10:30 Eastern. We will be live before it and after it with some of the smartest people in the world to talk about whether it will work and whether it will ever happen.
COSTELLO: Absolutely. And you will be one of those smartest people, and we're glad for that.
Ok. Now the answers to our "Talk Back" questions. And I'm telling you these answers were fascinating this morning. The question we ask, why is evolution such a touchy subject?
This from Andy. "Maybe because everyone is afraid of the truth and since you can't talk about God in school, people never associate one with the other. I believe that God created everything, including the gift to all living creatures the ability to evolve."
This from Jenny. "Anytime something challenges a person's core believe structure, they become fearful. Unfortunately, many believe that evolution and creationism is an either/or issue. There's no denying God and there's no denying evolution. At some point we will understand."
This from Monica. "We were raised being taught that evolution and God cannot co-exist in our belief system. People of the church usually believe that evolution translates into a disbelief in God while scientists believe in the Big Bang Theory and generally use this is a factor to a oppose God's existence. I personally believe in both. Fact proves evolution while humanity proves there is a God."
Please keep the conversation going. So fascinating this morning. Facebook.com/Americanmorning.
ROMANS: And on that note, we send it over to "CNN NEWSROOM" with Kyra Phillips. It starts right now. Good morning Kyra.
