strengthened our economy instead of weaken it. unfortunately, the speaker walked away from a balanced package. what we agreed to instead wasn't all that grand. but it was a start. roughly $1 trillion in cuts to domestic spending and defense spending. everyone knows we have to do more and a special joint committee of congress is assi assigned to this. today i'm laying out a set of specific proposals to finish what we started this summer. proposals that live up to the principles i've talk about from the beginning. a plan that reduces our debt by more than $4 trillion and achieves these savings in a way that is fair. by asking everybody to do their part so that no one has to bear too much of the burden on their own. all told, this plan cuts $2 in spending for every dollar in new revenues. in addition to the $1 trillion

in spending that we've already cut from the budget, our plan makes additional spending cuts that need to happen if we're to solve this problem. we reform agriculture subsidies. subsidies that a lot of times pay large farms for crops that they don't grow. we make modest adjustments to federal retirement programs. we reduce by tens of billions of dollars the tax money that goes to fannie mae and freddie mac. we also ask the largest financial firms, companies saved by tax dollars during financial crisis, to repay the american people for every dime that we've spent. and we save an additional $1 trillion as we end the wars in iraq and afghanistan. these savings are not only counted as part of our plan but as part of the budget plan that nearly every republican on the house voted for. finally, this plan includes structural reforms to reduce the

costs of health care and programs like medicare and medicaid. keep in mind we've already included a number of reforms in the health care law, which will go a long way towards controlling these costs, but we're going to have to do a little more. this plan reduces wasteful subsidies and erroneous payments leading to excessive health care costs. it makes prescriptions more affordable through faster approval of generic drugs. we'll work with governors to make medicare for efficient and more accountable and change the way we pay for health care. instead of just paying for procedures, providers will be paid more when they improve results. and such steps will save money and improve care. these changes are phased in slowly to strengthen medicare and medicaid over time, because while we do need to reduce health care cost, i'm not going to allow that to be an excuse for turning medicare into a

voucher flam leaves seniors at the mercy of the insurance sdrand i'm not going to stand by balancing the budget by denying or approving insurance for children. we won't abandon something this country has kept for generations and that includes our commitment to social security. i've said before associate securi social security does face long-term challenges as our country grows older and both parties are going to need to work together on a separate track to strengthen social security for our children and our grandchildren. so this is how we can reduce spending. by scouring the budget for every dime of wasteinefficienty, reforming spending and making adjustments to medicare and medicaid, bought but all of these will not solve our fiscal problems.

we can't just account our way out of this hole. it's going to take a balanced approach. if we're going to make spending cuts, many of which we wouldn't make if we weren't facing such large budget deficits. then it's only right that we ask everyone to pay their fair share. in the last week, speaker of the house john boehner gave a speech about the economy, and to his credit, he made the point that we can't afford the kind of politics that says, it's my way or the highway. i was encouraged by that. here's the problem -- in the same speech, he also came out against any plan to cut the deficit that includes any additional revenues whatsoever. he said, i'm quoting him, there is only one option -- and that option, and only option, relies entirely on cuts. that means slashing education, surrending the research necessary to keep america's

technological edge in the 21st century, and allowing our critical public assets like highways and bridges and airports to get worse. it would cripple our competitiveness and our ain'tbi to win the jobs of the future and mean asking sacrifice of seniors and the middle class and poor while asking nothing ever the wealthiest americans and biggest corporations. so the speaker says we can't have it my way or the highway, and then basically says, my way. or the highway. that's not smart. it's not right. if we're going to meet our responsibilities, we have to do it together. now, i'm proposing real serious cuts in spending. when you include the $1 trillion in cuts i've already signed into law, these would be among the biggest cuts in spending in our

history, but they've got to be part of a larger plan that's balanced. a plan that asks the most fortunate among us to pay their fair share, just like everybody else. and that's why this plan eliminates tax loopholes that primarily go to the wealthiest taxpayers and biggest corporations. tax breaks that small businesses and middle class families don't get. and if tax reform doesn't get done, this plan asks the wealthiest americans to go back to paying the same rates paid during the 1980s, before the bush tax cuts. i promise, before anybody looks forward to the prospect of raising more taxes, we're paying more taxes. i don't. in fact i've cut taxes for the middle class and for small businesses and through the american jobs act we cut taxes again to promote hiring and put more money in the pockets of people, but we can't afford these special lower rates for the wealthy.

breaks, by the way, that were meant to be temporary. back when these tax cuts, back in 2001, 2003 were being talked about, they were talked about as temporary measures. we can't afford them when we're running these big deficits. now, i am also ready to work with democrats and republicans to reform our entire tax code. to get rid of the decades of accumulated loopholes, special interest carveouts and other tax expenditures that stack the deck against small business owners and ordinary families who can't afford washington lobbyists or fancy accounts. our tax code is more than 10,000 pages long. if you stack up all the volumes, they're almost five feet tall. that means that how much you pay often depends less on what you make and more on how well you can gain the system. that's especially true of the corporate tax code. we've got weren't of the highest corporate tax rates in the

world, but it's riddled with exceptions and special interest loopholes. so some companies get off paying a lot of taxes while the rest of them have, end up having to foot the bill. and this makes our entire economy less competitive and our country a less desirable place to do business. that has to change. our tax code shouldn't give an advantage to companies with best connected lobbyists. it should give advantage to those has create jobs in the united states of america and invest here and we can lower the corporate rates if we get rid of a lot of these special deals. so i am ready, i am eager, to work with democrats and republicans to reform the tax code to make it simpler, fairer and make america more competitive. but any reform plan will have to raise revenue to help close our deficit. that has to be part of the formula. and any reform should follow

another simple principle -- middle class families shouldn't pay higher taxes than millionaires and billionaires. that's pretty straightforward. it's hard to argue against that. warren buffett's secretary shouldn't pay a higher tax rate than warren buffett. there's no justification for it. it is wrong that in the united states of america a teacher or a nurse or a construction worker who earns $50,000 should pay higher tax rates than somebody pulling in $50 million. anybody who says we can't change the tax code to correct that, anyone who has signed some pledge to protect every single tax loophole so long as they live, they should be called out. they should have to defend that unfairness.

explain by somebody who's making $50 million a year in the financial markets should be paying 15% on their taxes when a teacher making $50,000 a year is paying more than that? paying a higher rate? they ought to the have to answer for that. and if their pledge to keep that kind of unfairness in place, they should remember the last time i checked the only pledge that really matters is the pledge we face to uphold the constitution. now, we're already hearing the usual defenders of these kind of loopholes saying this is just class warfare. i reject the idea that asking a hedge fund manager to pay the same tax rate at a plumber or teacher is class warfare. i think it's justice t the righ thing to do. i believe the american middle class who have been pressured relentlessly nor decades believe it's time that they were fought

for as hard as some lobbyist fought to protect special interests for billionaires and big corporations. nobody wants to punish success in america. what greats about this country is our belief that anybody can make it and everybody should be able to try. the idea that any one of us can open a business or have an idea and make us millionaires or billionaires. this is the land of opportunity. that's great. all i'm saying is, that those who have done well, including me, should pay our fair share in taxes to contribute to the nation that made our success possible. we shouldn't get a better deal than ordinary families get. and i think most wealthy americans would agree, if they knew this would help us grow the economy and deal with the debt that threatens our future. it comes down to this --

we have to prioritize. both parties agree that we need to reduce the deficit by the same amount. my $4 trillion. so what choices are we going to make to reach that goal? either we ask the wealthiest americans to pay their fair share in taxes or we ask seniors to pay more for medicare. we can't afford to do both. either we gut education and medical research or we've got to reform the tax code so that most profitable corporations have to give up tax loopholes that other companies can't get. we can't afford to do both. this is not class warfare. it's mad. the money has to dumb from somewhere. and if we're not willing to ask those who have done

extraordinarily well to help america close the deficit, and we are trying to reach that same target of $4 trillion, then the log logic, the math said everybody else has to do a whole lot more. we've got to put the entire burden on the middle class and the poor. we've got to scale back on the investments that have always helped our economy grow. we've got to settle for second rate roads and second rate bridges and second rate airports, and schools that are crumbling. that's unacceptable to me. that's unacceptable to the american people, and it will not happen on my watch. i will not support -- i will not support any plan that puts all of the burden for closing our deficit on ordinary americans. and i will veto any bill that changes benefits for those who rely on medicare, but does not

raise serious revenues by asking the wealthiest americans or biggest corporations to pay their fair share. we are not going to have a one-sided deal that hurts the folks who are most vulnerable. look, none of the changes i s i proposing are easy. it's always more popular to promise the moon and leave the next bill for the next election or the election after that. that's been true since our founding. george washington grappled with this problem. he said, towards the payment of debts, there must be revenue. that to have revenue there must be taxes. and no taxes can be devised which are not more or less inconvenient and unpleasant.

he understood that dealing with the debt is -- these are his words -- always a choice of difficulties. but he also knew that public servants weren't elected to do what was easy. they weren't elected to do what was politically advantageous. it's our responsibility to put country before party. it's our responsibility to do what's right for the future. and that's what this debate is about. it's not about numbers on a ledger. it's not about figures on a spread sheet. it's about the economic future of this country, and it's about whether we will do what it takes to create jobs in growth and toont whi opportunity while facing up to the debt we've built over the generations, and it's also about fairness. it's about whether we are, in fact, in this together, and we're looking out for one another.

we know what's right. it's time to do what's right. thank you very much. thank you. there's the president of the united states, he's actually going to go shake some hands, it looks like, in the rose garden. we'll keep that picture up as we observe what we just heard. invited guests as well 5d as media. music playing. we'll see if he gets a question or two, he unveiled his $4 trillion as opposed to $3 trillion plan to cut debt. christine romans watching closely with all of us. what do you think? >> a great line, it's not class warfare, wolf, it's math. weren't of the things is that republicans will say, here's the math for you. 95% of all taxpayers, their tax bills are equal to the top 1%. the top 1% pays 95% of all income coming into the government and point out 45% of all taxpayers pay nothing and in

some cases get money back from the tax code every year. the best is, the tax code is an utter mess. it's not as simple as -- some would like to make it out to be and it does need reform, but doesn't sound like there are a lot of -- a lot of political unity for real tax reform at this stage, and that's what i think. >> a lot of talking. gloria borger is with us. as we see the president going back, he'll walk up the stairs and go back into the oval office, get on with other activities today. i had a chance, i met with steve forbes last night. for years he's been talking about a flat tax. is it realistic at all as we get ready for election year to think there's going to be, beyond talking, any significant tax reform, substantive change? >> well, the only way, wolf, and the only real hope is that you have this super committee that has an ax hanging over its head. that if it doesn't do some serious tax reform, deficit

reduction, entitlement reform, then the congress will have to accept these kind of cuts that could be very politically difficult for them. so since there is an ax hanging oakar their head, maybe they will actually do the job they were sent there to do. i also have to say that i believe the president himself, who i was listening, talking about how we need to do this tax reform, missed an opportunity himself in his state of the union speech, way back in january, wolf, you'll remember, the simpson-bowles commission had come out. it had proposed tax reform, and at that point the president held back and did not embrace it. if he had embraced it or parts of it in january, we might have had enough time to actually get something done, but right now, we've got -- we've got a very, very tight deadline, and you know, who knows if they can really get something done before

christmas. you know. even with the threat out there. >> the word cuts including significant cuts in defense spending. >> yep. >> the president rejected the simps's bowles plan in part because some of the liberal democrats who were members rejected it. didn't like some of the entitlement cuts proposed and as a result rejected it, as well as some conservative republicans, paul ryan, rejected it and in the end the president didn't accept it either. one final point, gloria? >> that's why you don't see huge entitlement cuts in this president's first offer here. in his particular marker. this will make his base happy, because while he does have some cutbacks in medicare, it's really to provider, not to beneficiaries. again, you have to believe this is the first shot across the bow. so hopefully, they'll be more talking. >> let's get a little republican reaction.

douglas holtz eaken is with us. joining us who worked for president bush as well as economic adviser for john mccain four years ago. i assume you didn't like what the president said, but tell us why. >> a yawning gap in the budget and reality. he put out three budgets. the ability to go through line by line and each one led to a greek-style third world debt crisis, despite the fact that he raised all the taxes he wanted to in those budgets. that tells you you have to get serious about spending. the entitlement programs, medicare, medicaid, social security are crowding out everything else, and they are. the choice is not the one the president talked about, between having crumbling schools and broken bridges and raising taxes on rich people. the choices are, how we spend the money and how we actually afford it. he put together not one proposal for entitlement reforms that's serious here. look we are, wolf.

we haven't cut anything yet. the president just said we cut $1 trillion. that's not true. it's a promise that maybe in 2018, long after he's not president we'll spend less. i've seen a lot of congressmen come and go. they don't always fulfill their promises. he's misses and opportunity to get serious about entitlement reform. we are missing the fundamental threat to this economy and future generations, and i'd rather see him put out a real budget than put out another speech. >> one question, doug, before i let you go. when the president asked republicans and congress in congress to continue the payroll tax cut that continues through the end of this year but then ends, unless renewed. if it's not renewed, is that a tax increase on middle class families in america under your definition of a tax increase? >> look, if you compare the world with the policy versus letting it go, sure, it's a tax increase. no question about that. >> would that be a violation of the commitment under grover

norquist? no tax increase, even if there's a -- i ask the question, not as a gotcha kind of question. >> i honestly don't know the answer. >> the bush tax cuts were for a limited number of years. they expire now based on the last aagreement, beginning of 2013. if they expire across the board that will be seen as a tax increase. i wonder if they allow the payroll tax cut for middle class families to expire at the end of this year? will that, under that definition be seen as a tax increase? >> it may be. i don't know the pledge, but i do think it points to the fundamental issue, which is, tax reform is something that is not in violation of anyone's pledge. says we need a tax system that's coherent, raises the money to pay the nation's bills and doesn't compete with economic growth. i'm sympathetic to what gloria said, how hard to get things done and should have had leadership earlier in the year. if we are going to talk about taxes, talking about tax reform.

missing in the discussion is the big problem in the budget, entitlement programs. an enormous myth for the president. the only way to address the fairness for the next generation. the only way to preserve a social safety net every american wants. to leave that in disrepair is a real mistake by the president. >> douglas holtz-eaken, i'll be back in "the situation room." much more coverage then. and i'll get republican presidential candidate reaction from michele bachmann who will join us in "the situation room" later today. until then, thanks for watching. "cnn newsroom" continues right after a short break with suzanne malveaux. constipation, diarrhea, gas and bloating. with three strains of good bacteria to help balance your colon. you had me at "probiotic." [ female announcer ] phillips' colon health.

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live from studio 7, i'm suzanne malveaux. i want to get you up to date fon september 19th. >> oh, my god. >> federal crash investigators in nevada are collecting thousands of pieces of a vintage plane. it nosedived into the crowd friday. the plane had a data system and mounted video camera that could provide some clues. early suspicion focuses on the tail. parts fell off before impact. now, the crash killed the pilot and nine people in the crowd. we're just learning that a tenth person has died as a result of that crash. authorities haven't released the names of all of those killed but we do know one is mike woegen's

phoen of phoenix. graduated with high honors from arizona state in may, and john craig owned a construction business in the reno area, at the show with his son. a reporter talked to his sister-in-law in colorado. >> they could see the plane coming down, and i think that he probably sheltered his son, and that's the kind of guy he was. so very, very good dad. very good husband, very in love with my sister. >> his son, 12-year-old ethan, was hit by a piece of metal. doctors say he is going to survive. russian investigators blame a plane crash last june on the men in the cockpit. they point to pilot error and say that the navigator was drunk. 47 people died when the pilot tried to land in bad weather. instead the plane clipped the trees, and slammed into the ground in a fireball. a truck bomb exploded at the home of a senior pakistani police official today.

he wasn't hurt, but six of his guards were killed along with a woman and her daughter who were passing by on the way to school. the police official the target of that assassination attempt, he appeared on tv, and he said he's going to continue fighting against the taliban militants. police in birmingham, england, are searching the homes of six men suspected in a terror plot. now, authorities are not going to give details of the operation. they only say that the plot was in its early phase. police later arrested a woman, and she is charged with failing to tell them about the plot. stocks are in the red, across the board today. new worries now, because the debt crisis in europe is driving those markets lower. alison kosik at the new york stock exchange. alison, we know markets are down. tell us by how much and how much is actually related to the concerns out of europe? >> reporter: oh, pretty much everything to do with europe, suzanne.

the dow down now 204 points. it's off its lows of the session, the nasdaq is down more than 1%. look, wall street is focused on europe. it also has one eye on what president obama was just talking about. traders say that was more of the same. they call it politics as usual. they're questioning whether or not any of these tax increases will even make it through congress. they're skeptical if it has any chance of passing. it's the reason europe is really what's moving the markets, specifically greece. despite the small positive steps taken last week, all of that a distant. ry, because time is running out for greece. analysts say, one analyst says greece is getting closer to running out of money. at this point it has to agree on taking tougher austerity measures before getting this bailout. so everybody is sportort of wai to see what happens. greece is a small country. if it defaults, what is the ripple effects? that nervousness is what you're seeing in the markets today.

the fear index is spiking. you see the fear trade back on today. suzanne? >> alison, thank very much. it is a fight over the holy land, and this week the palestinian government is expected to demand recognition as an independent state. well, that's putting the halt to the middle east peace process and the deal in harm's way. we're going to explain how. two of the most important are energy security and economic growth. north america actually has one of the largest oil reserves in the world. a large part of that is oil sands. this resource has the ability to create hundreds of thousands of jobs. at our kearl project in canada, we'll be able to produce these oil sands with the same emissions as many other oils and that's a huge breakthrough. that's good for our country's energy security and our economy.

it's a decision that could change the face and the future of the middle east. this week the palestinian liberation organization will push to have palestine recognized as an independent country by the united nations. now, a lot of other countries including the united states are

scrambling to stop that from happening. our producer is joins us from the u.n. in new york to explain why this is shapping. elise, break it down for us. the obama administration, for a long time harks been trying to guide israel and the palestinian nation back to the bargaining table. why is it statehood for palestine would be a block here to actually having that happen? >> well, suzanne, in theory, it wouldn't. the u.s. says it does support a palestinian state, but what the u.s. says specifically, secretary of state clinton, is that the road to a palestinian state doesn't lead through new york. at the u.n. it leads through jerusalem, where the two parties should negotiate this. at the end of the day, no matter what happens here at the united nations, the palestinians are not going to have an end to the israel iroccupatii occupation i bank and what the u.s. are hoping, that they can use this opportunity to say, listen, let's not do anything

confrontational, provocative, get everybody excited but use it to get back to the table. negotiations all of these years failed. we're not getting our international legitimacy from the table with israelis. we want to go to the u.n. and demand our rights as a state and go to the international community. >> if they go to the u.n. what do they gain by being recognized by the u.n. as a country? >> well, depends what happens. at the u.n. security council has threatened to do, doesn't look like anything. there would you know about vote because the u.s. promised to veto and block him betting a majority. not political good for president abbas. if he goes to the general nations assembly, seen a little less confrontation but has a lot more support. he could upgrade palestines status as an observer state, observer member and they could get more working through international bodies. what israel is afraid of right now is that they could --

palestinians could use this to go against israel at the international criminal court. those kind of things to get rulings how they treat the palestinians. palestinians are saying, no. we just want to have our seat at the table, like any other nation. >> what would the borders look like? what would a palestinian state actually look like? would be it a state with borders or without borders? >> well, what the palestinians are saying is, we don't want a swiss cheese state. here the palestinians, they don't want israeli settlements in their state. israel always said there are settlements they can't gept rt of. everyone is hoping they can go back to what they call the 1967 borders before israel declared its independence. this would basically be 67 borders with agreed upon slots. they could have some of the settlements block, an israeli state. kind of move the borders around a palestinian state. palestinians very concerned they've already given up so much

of their territory. every little percentage, as we say, is very important. >> okay. elise, thank very much. we want to bring in fahd ajami, a senior from an institution. we're watching this across the arab world and the united states, its stance now on palestinian statehood. how is that being viewed in the rest of the region here? isn't there a risk the united states says, wait a minute. hold on. we don't want you to have a state through the united nations? >> well, suzanne, you've reached the heart of the matter for president obama, who came into office speaking about self-determination and promised the palestinians that it's a new day and a new dawn for them. to go to the security council and cast a veto against the palestinian state is politically problematic. it's really a catastrophe for him in the arab world, but he has no choice but to pass the

veto if it came to that. the hope is between now and friday some exit, some other formula will be found to spare one and all in this confrontation at the security council. >> do you think that's possible? that perhaps abbas, the united states convince them not to move forward on this, this week? >> i think abbas rolled the dice. if you listen, when he made his stand in ramallah, he basically said, look, i'm ready for a confrontation, ready for the hardships placed upon the palestinian people. it's interesting. we led with the question of the wider israeli setting, and i think president abbas is convinced the arab spring gives them leverage, vis-a-vis the united states. i personally don't think so, but it's his call. this is something the leadership appears to have made. >> this weekend's "new york times" columnist thomas friedman says that israel is aadrift at

sea alone" isolating itself further from the rest of the region. what's at stake for the future of israel here? >> well, i think israel dwells alone. this sounds like a biblical expression, if you will. and now it dwells alone all the more so, given the se serve severance of the ties. this makes them ironically more reluctant to give into the palestinians. you can see the logic. the region is so hostile, concessions much 45harder to co by. >> another twist. the tensions between tsurkey an israel. heating up. turkey is an ally and someone the u.s. has sworn to defend. if they continue to go after,

whose side is the united states on? who do we defend? >> we try to avoid, if you will, the reckoning. it's clear the territory we are familiar with, the turkey led by the military establishment, by the bureaucracy, the turkey, his foreign policy which dominated turkey the last 7 a ye0 years o that's come to an end. there's much more activist in the region and drawing much closer to the arab world and has really, in effect, put a distance between itself and israel, and we should remember as well, ties between president obama and turkey is good. the israeli nation, at the same time, doesn't have the same alienation from american power and from president obama personally. >> all right. fahd ajami, thank you for putting it into perspective. the big picture. appreciate it. >> thank you for the great

reporting you did out of afghanistan as well. >> thank. appreciate that. thank you. the final clemency hearing for a death row inmate, troy davis, is going on right now. we're live right outside the parole board meeting. ♪

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that sound like fun. vote for it by texting 22360. text 1 for garden of the future. 2 for smart phones, three apps or 3 for 2012 world records. halting the execution of death row inmate troy davis, accused of killing a police officer back in 1989. david' supporters are demonstrating outside the board of pardons and parole while the five-member board holds a final clemency hearing. the pope, archbishop desmond tutu, former president jimmy carter and more than 50 members ever congress have added their voices to calls for mercy, because of questions about the evidence in the case. now, if clemency is denied, troy davis is set to be executed by lethal injection on wednesday. our david mattingly is outside

the parole board meeting in atlanta. david, first of all, there's a lot of attention that's being paid to this particular case. we know that time is running out here. seven of nine witnesses have recanted their testimony against davis, but he's never won any appeals. do you think that clemency is even likely? >> reporter: well, this is an extraordinary case, and what his supporter, looking at is the fact that even though he was denied clemency back in 2008 by this very same board, there are now three new board members sitting there hearing this case for the first time. so they're hoping that the presentation of their arguments regarding what they say is a lack of evidence and the people who recanted their testimony, they're hoping that fresh ears and fresh eyes looking at this case will give them the votes they need to get davis off of death row. so right now, what we're seeing happening today, we're seeing attorneying f ins for both side

back to this board giving their best, one last best shot to either preserve or deny this death row. >> do we expect troy davis himself will speak at the hearing? >> reporter: he will not speak at the hearing, but he will be heard from. he is actually, he's been interviewed by a staff member working for this board. just as he has been interviewed behind bars in the past, he has been again this time. so his words will be entered into the record. the board members will have that to look at. in addition to everything that the attorneys on both sides are presenting. this is a huge case. this has been in the appellate level for 20 years now, and davis has lost at every single turn. that just shows you what kind of drama is going on right now. it is literally about life and death. he has no other place to go except to this board, and they have the power right now over whether or not troy davis lives

or dies. >> and, david, of course, we can't forget the victim in all this. savannah police officer mark mac phail and his family believes the right mack has been victed, and it is voi davis. are they at the hearing and will they be making a statement? >> reporter: their point of view will be put into the record as well. we have heard from his mother over the weekend saying the family has been having a rough time with this. they want some resolution here. and they want some peace. the mother says she's had a hole in her heart for the last 20-odd years, that this, since her son was killed. they believe that the courts have got this right. 's they believe that davis is guilty. the prosecutors in this case have maintained that he is guilty, and the courts have backed them up at every turn. listen now to what his mother had to say. >> it has been hell, because i want -- i would like to have

some peace. i would plhave some peace. i would like to have this situation over with. we are the victim. >> and the families, the family members for davis, they have didn't incredibly active, in fact, the ones responsible for maintaining his innocence in the public, gathering support and it has really taken on an incredible life of its own. this is extraordinary in the way that he has gathered support from around the world over 600,000 signatures on petition from around the world. all of that presented for this board to see as well. suzanne? >> all right, david, we'll follow this closely. obviously a lot of twists and turns, and there will be developing news either way in the next 48 hours on this case. thank you very much, david. more after this break. [ male announcer ] there's just something about werther's caramel

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>> let's listen in. >> seems like an important part of the plan that he's trying to emphasize. >> what the president's proposed is that congress shape comprehensive reform of the individual in the corporate tax system. so that, again, we're not just making our country more competitive, strengthening for investment but do something to contribute to deficit reduction and asks the most fortunate americans to share in taxes. the basic principle at the heart of the buffett principle if you're among the fortunate few in the united states, you pay in a shared income of taxes more than what an american middle

class family pays. lots of ways achieve that. how you do it as a whole, we won't gi give hoeffels hproposals because lots of different way to do that. we'll fight to make sure that's a part of what congress considers and ultimately delivers. >> why not give a specific recommendation? you spelled out how much revenue you want to raise overall, why not be specific on that one? >> in some ways you could have we're having a debate about whether you should try to reform the overall system, corporate individual, to meet the basic principles laid out in the president's proposal or try to get more revenue out of the current system. now, the president did lay out very detailed set of changes, specific changes for individuals and corporates, if we're trying to get more revenue out of the current tax system, but i think the best strategy for the country is to try to reform the overall system so we're bringing

rates down where we can. we're eliminating all the wasteful subsidies in the tax code and helping contribute to deficit reduction by making the economy more competitive in the long run and, again, making the system overall more fair than it is today, and we think that's the best way to go and, again, we think it's better than the alternatives. >> can i ask you a question about the european question? you said europeans have the fire power to tackle this, there's a political will there and how worried are you it will spill over into the american economy at a time when the economy is rather fragile? >> europe is under a lot of pressure and face a lot of pressure. it's affecting confidence here and around the world. we have a huge economic stake and financial stake and it is not in the interest of the united states for europe to be

weakened. we are working closely with them and being supportive as they craft a strategy. is there political will? i believe there is. it's not a question of the economic resources of that great continent. this is with their capacity to solve and i think you'll see the leaders of europe do what they've didn't doing over the last several months and weeks to try to reassure the world they have the political will, not the economic capacity and it's in the interest of the united states for them to do that. >> a question for you, the expiring bush tax cuts, if that -- for the wealthy, if that is a scene of $800 billion, what about the cost of not letting the rest of the tax cuts expire? how you would account for that? >> so the way we constructed our approach was to start from what would be the consequence of having all of it be extend and then we said that the top rates should not be extended.

the top rates not extended. we've projected with the impact of the deficit having middle tax cuts continue. a balanced approach will give you the ability to let the middle class tax cuts continue and if you enact the entire program we've proposed, bring our deficit down to the low 2s, 2.3% of gdp, at the end of this period and keep the debt as a percentage of the gdp in the low 70s instead are climbing up into a dangerous range. so we've encompassed it by putting in the baseline the assumption that will be extended. >> it's factored in there? >> yes, it is factored in. >> secretary geithner, a couple questions. one, is it -- are you maintaining that 1.5 trillion dollars in tax increases, all of which would be on the top two tax brackets, as i understand it, will have no adverse impact whatsoever on job creation? >> well, again, our proposal is

through comprehensive tax reform, to make the tax system for united states better for investment, better for growth and more fair to average american. if congress were to meet the basic principles laid out i'm confident the modest changes suggested during revenues would make the economy stronger in the long term not weaker in the long term. you want to do it carefully. it is very important we find a way to get congress to make this tax system better for growth and investment in the united states. lots of different ways to do that but we want to meet that basic test. remember, you know, we're a very large economy, and we're talking about estimates over ten years. and 1 -- $1.5 trillion revenue is roughly 1% of the entire output of the american economy. a mod 0 of the change in revenues. if you do it sensibly through

tax reform you'll make growth in the united states stronger, make people more confident in the future, more likely to invest that's something we should be looking for. >> you're watching timothy geithner making the case this is the appropriate time and appropriate way to decrease the debt by $3 trillion over a deck kate or so, by raising taxes or at least for millionaires having their fair share be the same as the share that middle class folks are paying their taxes. we'll see how that goes over. a lot of people reacting to this today. democrats and republicans alike. more on this story after a quick break. yup. [ male announcer ] progresso. 40 soups 100 calories or less.

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top of the hour, i'm suzanne malveaux. want to get you up to speed. president obama unveils his millionaire tax. he says it would guarantee that people with seven-figure incomes would pay the same percentage in taxes as america's middle class. the millionaire tax is just one part of the president's

blueprint to cut $3 trillion over the next decade. >> i will veto any bill that changes benefits for those who rely on medicare but does not the raise serious revenues by asking the wealthiest americans or biggest corporations to pay their fair share. >> republicans in congress immediately rejected the president's proposal. they say that a tax increase on the wealthiest americans amounts to class warfare. stocks now deep in the red today weighed down by greece's debt crisis. right now dow blue chips are off, down 177 points. greece needs another bailout to stay afloat but europe says it wants more economic reforms to happen first. that's gotten investors worried that greece could default within weeks, if not days. unbelievable pictures there. just a tragic scene. the number of people killed at

nevada air show rose today to ten. federal investigators say the vintage plane that crashed had a data system on board. they are hoping that memory cards found in the wreckage will reveal some clues. dozens of spectators had a close call. >> a second later the thing crashes right behind me and i get -- all i remember was i'm trying to run, is i see stuff coming. then that's the last thing i remember. >> the investigators are focusing early on the plane's tail. photos show a piece fell off before the crash. the georgia board of pardons and paroles is revugs the case now of troy davis. that is happening today. now unless the board grants clemency, davis will be put to death wednesday for the murder of a police officer back in 1991. amnesty international and the

naacp have spearheaded petitions and rally to save troy davis. that is because several trial witnesses have changed their stories. others involved in the case now say a different man committed the murder. the former head of the international monetary fund is speaking out now about the sexual asaw the charges. dominique strauss-khan told french tv his encounter with a hotel housekeeper in new york last may was consensual. and he says it never should have happened. >> translator: it was a weakness. it was a moral weakness, a moral mistake and i'm not proud of this. i regret this. >> new york prosecutors dropped the charges after the accuser's credibility was called into question. the woman has now filed a civil lawsuit against strauss-khan. the ceo of netflix says "i messed up." he's referring to a big price hike that happened last july. customers revolted.

net application, the soctock fe and to fix the problem, streaming content and mail services are separate. dvds by mail will be called quickster. and the emmy goes to -- "modern family." >> abc's "modern family" wins five emmy awards including best comedy series for the fourth year in a row. the emmy for best drama went to "madmen." also charlie sheen presented an award and wished his "two and a half men" family well as the show moves forward without him. and tenth person has died after being injured in a weekend air show crash that happened in nevada. investigators may have found some critical evidence now. they say that the vintage plane had video and data recording devices. now investigators hope to use the tape to find out what caused

the plane to nose-dive slamming into spectators at that event in reno. dan simon is joining us live from reno. dan, we know a tenth person now has been confirmed dead in this crash. there are dozens of people who were injured here. do we have any idea on their conditions? >> reporter: well, suzanne, we know about 70 people were taken to local hospitals. of those 70, a few dozen still remain and we know that some of these injuries are quite horrific. we actually spoke to a nurse who was among the first to arrive here at the scene. she told us that about a dozen or so people actually had some limbs amputated. they would have been in the first or second row of where the plane came down and they would have been hit by flying shrapnel. these injuries are truly horrific. we know that several people are still in critical condition. >> that's awful.

that's just unbelievable when you see what actually occurred. we are hearing that they're getting at least some information about part of the plane's tail that was found. what do we know from that? >> reporter: well, there's a lot of attention being placed on the plane's tail. we can see during the flight what's called the elevator lift tab actually separated from the plane. crews actually canvassed the debris field over the weekend and they found what they believe is that elevator lift tab and there's a lot of speculation that because it came off during flight that that's what caused the plane to go down. but at this point we just don't know. it is going to take months of investigating. >> dan, do we know if this event is going to be back next year? are they going to continue this? >> reporter: well, it is a great question. you talk to people who live in this community and they take a lot of pride in this event. it's been here for nearly a half century. a lot of economic dollars come into reno. you talk to them and they would

like to see it come back but at this point it is really unclear. the fact that you had spectators die. the first time that has ever happened at this event. you've had 19 pilots die over the years but never spectators. the pilots know their inherent dangers but really for the spectators, they expect to come to a safe event. it is really going to be up to federal investigators and people who put on the slow to decide whether or not it comes back, suzanne. >> such a tragedy. all right, dan, thank you very much. the ntsb is also investigating another air show crash. now this one in west virginia. it happened on saturday. a stunt pilot was killed in this fiery crash. no one was -- no one on the ground was injured. organizers canceled the second day of events at that particular air show. here's your chance to talk back on one of the big stories of the day. today's question -- why is evolution such a touchy subject? carol's the best person to ask

this to. carol, you deal with all of these touchy subjects. help me understand this. because we're talking about the united states more than $14 trillion in debt, 9% unemployment rate, and we've got people debating evolution. it comes up at every campaign. why? >> namely, the republicans are talking about evolution these days. so i just -- i just wondered about the question. i mean nobody really wants to devil into it or touch it. consider this. what new book is too hot to print in the united states? no, it is not the one about sarah palin. that's actually coming out tomorrow. it is 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 even touch this thing saying the controversial topic would be a tough sell. but in canada the book's been nominated for several literary prizes. it goes to show charles darwin's theory of evolution was

published in 1859 and it is as controversial now as it ever was. even the republican presidential candidates are weighing in. >> we have a here when you calln the science of evolution, all i am saying is that in order for the republican party to win, we can't run from science. >> hundreds and hundreds of scientists, many them holding nobel prizes who believe in intelligent design. >> despite what michele bachmann said, keep in mind today the vast majority of scientists accept evolution as fact. >> people talk about the theory of evolution. therefore they assume that that scholar is a theoretical object. that scholar is a fact. every scholar in this room is a fact. those facts are not accounted for in the biblical account.

>> the courts have squashed efforts to have alternative theories like intelligent design taught in schools ruling it has more to do of religion than science. many americans are still skeptical of revolution. in a poll, 41% think evolution is false or likely to be false. the "talk back" question today -- why is evolution such a touchy subject. facebook.com/carolcnn. i'll read some of your comments later this hour. >> they're going to be touchy, carol. i bet you're going to get a lot of response. >> it is a touchy subject. i just want to know why. why? >> okay, thank you, carol. here's a rundown of some of the stories up ahead. first the president's bold plan to reduce the debt. christine romans is braking it down. the brew it will and deadly home invasion in connecticut that horrified the nation. opening statements for the second suspect begins today. and palestinians pushing for statehood. world leaders meeting at the u.n. to make a decision. and this --

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i tell you what i can spend. i do my best to make it work. i'm back on the road safely. and i saved you money on brakes. that's personal pricing. president obama lays out his plan to slash the country's debt by $3 trillion -- that's, with a "t" -- trillion dollars over the next five years raising taxes on corporations and welter in americans. in his speech last hour the president defended the tax increases that are opposed by

republicans. he says that everybody has to pay their fair share to dig this country out of its debt. >> by asking everybody to do their part so that no one has to bear too much of the burden on their own. all told this plan cuts $2 in spending for over $1 in new revenues. in addition to the $1 trillion in spending that we've already cut from the budget, our plan makes addition a spending cuts that need to happen if we're to solve this problem. >> so the president says that millionaires shouldn't pay a lower tax rate than middle income americans. so who should? who would pay higher taxes under the president's plan to reduce the debt? i want to bring in christine romans of our money team. christine, we both listen to the president's speech here. he says it is not about class warfare. it is about math. can you break it down for us, what this tax plan actually includes? who's going to end up paying? >> you asked a really good question, who would pay higher

taxes? people who make $1 million or more, people who make $200,000 a year or more, some companies would, oil and gas companies. the buffett rule, millionaires taxed more. he said again and again that it is not fair that workers pay a higher tax rate than their big wealthy bosses do. and that's just not fair. he keeps calling it the the buffett rule. though tim geithner speak being at the white house briefing right now calls it the buffett principle. people who hate it are calling it the buffett tax. so already the semantics around it as you know well in washington can be pretty loaded. let the bush era tax cuts expire. that would raise $866 billion. cap itemized deductions. that would bring up about $410 billion. one of the things that people are zeroing into on this is the fact that many, many rich people can get big tax breaks for municipal bond investments on the income they make from

municipal bond investments. so a lot of people are zeroing in on that and wondering, well, would that make it harder for municipalities to borrow money. then it is not just millionaires and billionaires paying higher taxes. then it is everyone who's trying to go out there and do some sort of improvements in their community. so that one is getting a lot of criticism at the moment. also closing tax loopholes, $300 billion. you know hedge fund managers make an awful lot of mrn. you know there are tax loop hopes for oil and gas companies. these are among the things the president is zeroing in on. >> if it is a tax or principle or whatever you call it -- >> a rule is a rule. >> a lot of people pay close attention to this. thanks, christine. appreciate it. they disagree about the details but members of both parties say that the country's tax code is in desperate need of a makeover. with all the focus on the debt, is this an opportunity really for some real progress on tax reform? i want to go to our chief

political analyst gloria borger from washington. gloria, do we think, is it possible that the political climate, as it is now, that some real change could happen with the tax code? >> well, in many ways, they almost don't have any choice right now because the only way you can get rid of all those deductions, the president's talking about, make the tax code fairer is if you lower the top rate, and then you get rid of deductions. and so the question becomes for the wealthy, is it really a tax increase if they've had their top rate lowered? so maybe then at that point everybody could kind of hold hands, close their eyes and jump off the cliff together and say, it's not a tax increase. so this could be a moment when in fact they could do that. on the other hand, they could just revert to form and decide not to do anything. but they do have that sort of

damocles hanging over their head which says, if the super committee doesn't get something done, then these draconian cuts take effect and nobody really wants that to happen. that's a long way of saying -- maybe. >> i would quote you. you said earlier it was an ax hanging over their head. we're going to go with that expression. do you think that the american public, do you think that they're ready to some more some sort of change in how we pay for our government services? do you thinks folks are on board with this? >> i think the american public is really divided. because first of all, the american public wants services and they want their social security and they want their medicare but they don't really want to pay for it. the american public also, if you look at polls, believes the government is too big and that government is inefficient. so the public doesn't want to pay for a swollen government, a bloated government, if you will. and this is what the tea party's talking about. tea party is saying the government is too big.

we'd rather make government smaller and make it more efficient. but it really depends who you talk to, suzanne, because democrats say we need more government. republicans say we need less. >> gloria, i noticed in the speech -- i don't know how many times he used the word fair and fairness an then turned back to the republicans and said it's about unfairness, what they're doing, it is not right, it is not smart, that kind of thing dpop we think that this is president obama's line in the sand here, that he is really going to be able to shape the debate going into 2012 with this as his mantra? >> well, you know, suzanne, from covering the white house yourself that this president has always taken a lot of guff from his own party for not getting involved in the debate early enough, for example letting congress do health care reform. and for also not drawing a line in the sand. and they wanted him to draw a line in the sand. what i think this is about is his base politics and he can then go say to the democratic base, look.

i put a plan out there, and you know in a perfect world i wouldn't have done much on entitlements, i wouldn't have touched social security, but in the end i had to compromise. so what i think we saw today was sort of not the line in the sand, but the starting line to some kind of compromise. although, as you know, he did threaten to veto if there isn't some balance in this plan and i don't think he can back off of that. >> i don't know -- you're going to have to see. do you think it is too late though? it is kind of late in the game though. is it too late perhaps to rally the base? >> well, the base is probably very happy with what he did today and it depends what the opposition looks like as you get closer to the election. so i think this helps him with the democratic base because lots of democrats in congress do want to use that medicare issue to run against republicans on and, as you know, in 2012 because

paul ryan's budget in the house did fundamentally propose changing medicare. so i think this will make nancy pelosi happy. in the long term will they be happy with the president? that remains to be seen. >> i'm going to quote you in the day, the ax hanging over their head. that's a good line. this is your chance to "choose the news." text 1 for garden of the future. a giant park being built in the middle of downtown singapore mixes nature and technology in some surprising ways. text 2 for sleep and relaxation. apps for those of us who can't stop bringing our smartphones to bed. some apps promise to help us sleep better and more soundly. text 3 for guinness world records, a round-up of some of the most interesting records in 2012. vote by texting 22360.

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a trial is under way in connecticut for the second man charged in the gruesome 2007 home invasion in which a mother an her two daughters were killed. joshua komisarjevsky faces a death sentence in convicted in the attack on the petit family. his co-defendant steven hayes was sentenced to death last year. police say the two men broke into the petit home. they made the mother go to the bank and withdraw money. while the suspects then killed

her and set the house on fire killing their 11-year-old and 17-year-old daughters. our deborah feyerick just came out of the courtroom in new haven, connecticut. deborah, it is clearly one of the worst cases we've ever seen here, ever heard of. what do we know about what's going to happen with this guy? >> reporter: well, first of all the opening is today. very interesting. prosecution didn't even give one. they said the evidence is going to speak for itself. the defense on the other hand said the evidence is not in dispute. what's at issue is whether the suspect on trial joshua komisarjevsky, whether or not he intended to murder the wife in this particular tragedy. they said that according to the confession -- we're going to hear some of that -- according to the confession that in fact the plan was changing and as it changed, the two suspects became increasingly agitated. it was no longer a home invasion but it was a burglary with the

wife actually going to the bank to withdraw that money. the defense lawyers say murder was never part of the plan, that in fact komisarjevsky says that imneat killing anyone there. is no way. he also said after the deaths did take place that, "they did what they were supposed to do." the defense is blaming the man who's already been convicted and is facing the death sentence basically. they're saying that it was steven hayes' idea to do all of this, that he's the one who raped the wife, that he's the one who bought the gasoline to set the house on fire and that in fact he's the one who lied about it after they were caught immediately after. what they are really trying to do is minimize the role of the defendant on trial right now, joshua komisarjevsky, saying, well, yes, he is the one who scattered out the house after randomly running into the wife in a parking lot earlier in the afternoon and that he's the one who did hit the husband.

the only survivor in the head with the baseball bat. they're trying to turn the tables and be very aggressive, taking a totally different approach than the first trial in which the man was found convicted and guilty of all the charges. >> just a horrific, horrific case there. thank you. the fight in the holy hand is heating up now. this week the palestinian government is expected to demand recognition as an independent state. that's putting the whole middle east peace process in harm's way. we'll explain why. ♪ priceis it true thata-tor. name your own price....

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here's a rundown from the stories that we are working on. up next -- a big dilemma for world leaders meeting in new york. whether or not it is time to

make palestine an independent state. and then, finding them early, an organization on a mission to track down some of america's future leaders. and later, 1 in 6 americans are living in poverty. that is more than 46 million people. you're going to see some faces behind the numbers. world leaders will most likely have a tough decision to make this week. whether or not to recognize palestine as an independent state. it is a debate that could have a huge impact on the middle east peace process as well. want to bring in fran townsend, she joins us in new york via skype to talk about this. she is a cnn national security contributor, member of the cia external advisory committee. fran, good to have you with us here. the obama administration doesn't want to see pal zion grant-- palestine granted statehood. explain why and not in this way? >> it puts the united states in a very awkward position, u sedan. if this comes up for a vote, the

u.s. is a member of the security council, has the veto power. it is a veto that will most certainly undermine u.s. credibility as an honest broker in the peace process. thus goes the argument from the arab world. so what the u.s. would like to see is renewed negotiations between israel and palestine bilaterally to resolve the remaining issues before such a vote proceeds. now the palestinians have threat bed one of the ways around the veto is to have a vote come up in general assembly. it doesn't actually recognize in the statehood but it would be progress from their perspective. there is very dangerous brin brinksmanship i think going on on all sides of this right now. >> you have to bring israel in to the equation as well. thomas friedman from "the new york times" argued the key pillars of the security for israel have crumbled. the friendship with turkey, jordan, all in jeopardy right

now. israel. how does this work for them? they seem to be dangerously isolated from the rest of the region. >> well, they've lost key allies in the arab world. we haven't even mentioned iran, ahmadinejad, who in the past has threatened to blow israel off the face of the map. so you can understand israel's concern about their current security situation. look, the muslim brotherhood is on the rise throughout the region. you worry about their taking control of parliament and eequipped. you worry about the rise of extremist groups like al qaeda in a place like libya. and so, look. i think israel is rightly concerned. this is a very dangerous time and it really -- this is a very awkward position for the united states as they go in. i think secretary clinton has invested herself in trying to manage this process through the general assembly but it is not at all clear today how this will unfold later this week. >> fran, real quick, let's talk a little bit about -- the united

states propped up libya's gadhafi, egypt's mubarak, for stability in the middle east. now they're gone. it is not clear whether we'll see flourishing democracies in any of these countries. has the arab spring made the united states more vulnerable had. >> it's certainly given us less of a sense of control. how it pans out -- look, al qaeda played no part in these revolutions. but the absence of power is to their benefit. we have to work with the opposition leaders to prevent that. >> all right, fran, thank you so much for breaking it down for us. appreciate it. the country said good-bye to two democratic daughters over the weekend. kara kennedy, the oldest child of senator ted kennedy passed away after having a heart attack at a health club in washington on friday. a family that has suffered many early deaths, kara was known as a survivor, an accomplished

filmmaker and tv producer, she lived through an early battle with lung cancer. and eleanor mondale, the middle child of former vice president walter mondale passed away this weekend from brain cancer. an entertainment reporter, radio host, she was also a socialite known for her striking good looks and free spirit. eleanor stumped for her father's failed presidential run against ronald ray in 1984. both women were only 51 years old. or no collars. we are business in america. and every day we awake to the same challenges. but at prudential we're helping companies everywhere find new solutions to manage risk, capital and employee benefits, so american business can get on with business. ♪

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when an investment lacks discipline, it's never this obvious. introducing investment discipline etfs from russell. visit russelletfs.com r a prospectus, containing the investment objectives, risks, charges, expenses and other information. read and consider it carefully before investing. it is a down day for stocks. concerns about the debt crisis in europe are driving the markets down. alison kosik is at the new york stock exchange. so how are the markets doing so far? >> they're not doing too well. the dow down 213 right now, nasdaq off more than 1%. what's happening, time is running out for greece at this point. the eu finance ministers met over the weekend.

not much came out of that so now the plan is to wait until october to give greece its next bailout. the thing is, it's got a debt payment due later in october so this is coming right down to the wire. sounds like of familiar to what our debt ceiling debacle turned into. analysts say greece is getting closer to running out of money. we are still seeing a lack of commitment on the part of institutions involving in shoring up financing and, hey, greece is a small country but what you're seeing happen here is a great big question mark. what could be the effects if greece defaults and that's what you are a he seeing play out in the markets today. that fear of the unknown. suzanne? >> you talked about $2 billion case of fraud that hit ubs on friday. we are now hearing it could be even more. what do you know? >> exactly. those losses are worse. ubs is going to be reporting a $2.3 billion third quarter loss. originally the estimate was at $2 billion. it is being called one of the biggest trading frauds ever. there was a plea, ubs -- by the

way, doing its own internal investigation into what it calls fictitious trade. >> i want you to stick around because you first reported on the ubs fraud case last week. we know the story. nobody's laughing about it. but stephen colbert did have some fun with your report. >> of course he did. >> just take a listen. >> i want to address those of you who are concerned because swiss financial giant ubs reported yesterday that they lost over $2 billion from rogue trades. how could something like this happen? i asked the television. >> analysts say what could be the motive? it may be intentional fraud. it could be basic stupidity or it could be known as fat fingers, maybe the trader hit a wrong button. >> i can thirm thiz with that. the other day i meant to dial 411 but instead i lost $2 billion.

>> he didn't directly make fun of me. >> but you got to have a comeback. you got to give him something to work with for tomorrow. you know what i mean? >> i know. you first. i'll have to watch what i say. >> you were fine. you were good. we'll get get back at him somehow. all right, thanks, good to see you. identifying poor troubled children with potential. many believe they have no shot of guesting into the college of their dreams. but christine romans found an organization that specializes in finding students that are driven to lead. >> reporter: in this debate class the arguments may be hypothetical -- >> i came from the projects and i lived in a very low-class neighborhood. >> reporter: but for most of the students, they hit close to home. demetrius cooper is 1 of 60 high school seniors who called princeton home this summer. they came from all corners of

the country and also from racial and socioeconomic backgrounds considered underrepresented in the national leadership pool. >> my family is in the chicken farm business and because we barely got in, we had to take a huge loan so we can't really hire people to help us. so usually me and my sister go out an help with the farm work picking eggs and stuff. >> reporter: every summer the leadership enterprise for a diverse america selects promising students to help them go on to highly competitive universities. each day students take classes preparing them for college level work. there are also trips to new york city and college tours. all at no cost. thanks to board members. this man's foundation has given more than $1 million to the program. >> the best leaders from every group brought together is a very exciting proposition for me and very much a part of our national dna. >> reporter: for him it is not just financial support. he's become a role model to students like jesus. after failing the fifth grade,

he is now a pen graduate with ambitions to go to harvard law school and he is paying it forward. >> i just see the impact it had on me. having been here at princeton the past two summers i always see the impact that it has on the students and the type of relationships and connections that i make with the students and it is always personally gratifying just to see the whole process all over again. >> reporter: for lita, it is not just about college assets but leadership. >> by the time students are out of here they really take ownership of their own education and will fight for it. they will do it with a vigorous and critical and responsible way. >> reporter: christine romans, cnn, new york. >> the faces much poverty. we're going to hear from this library aide who says she doesn't know what she'll do once her hours are cut back. americans are always ready to work hard for a better future.

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cnn in-depth. the new face of poverty. a woman who works as a school library aide in los angeles has learned that they're going to cut her salary, her hours, rather, in half. that's going to push her below the poverty line. cnn's casey wian has her story. >> reporter: mary bates doesn't show up in government statistics on poverty. it's 7:00 a.m. an she signs her time card at burton street elementary school in los angeles. >> i come to work an hour and a half early and give that to the district so i can get my clerical work done. >> reporter: she earns $16.37 an hour. her title is library aide. but she does the job of a librarian. >> this is my library inventory. plus twhaunz aones that are on on the other side. we have approximately 14,000 books in this library.

>> reporter: bates says she works 8 to 10 hours a day at the library and at home but only paid for 6 hours. with time off for summer she earn earns about $2,000$20,000 a yea. she was learned her hours will be cut in half. >> you can't maintain a library in three hours. it is impossible. >> reporter: for students the cuts mean fewer reading opportunities. for bates, the loss of income will put her below the single person federal poverty threshold of $10,890 a year. >> you think about that. $16.37 an hour. gas is $4 a gallon. milk is $5 a gallon. a box of cereal is $5. clothes to put on people's back. you got utility bills that every other month we're raising water, we're raising this. i wouldn't be able to pay my bills. literally. i will not be able to make it. i can't live on three hours.

>> reporter: life already is complicated. bates has diabetes and could eventually lose her health insurance because of the impending reduction in work hours. >> if i had no medical insurance i don't think i could afford $11the $1,400 a month for the pills. >> reporter: she also cares for her two granddaughters, 6-year-old natalie, and 12-year-old amber. >> i'll work wherever i have to work. i have to make a way for my grandkids and myself. >> reporter: state budget cuts also will force her to a new school farther from home so she's looking for other work. >> i can't imagine doing any other job. those kids are like my family. >> reporter: living on the edge of poverty doesn't allow much planning ahead. where do you think you're going to be in a year from now? >> oh, i don't know. i couldn't answer that question because every month is a challenge. >> reporter: casey wian, cnn, los angeles. >> we wish her the best. if you've been affected by bullying or worry about your

kids, or your grandkids, here's a facebook app that's launching today that we think could be useful. the app is called stop bullying. speak up. it is the result of a partnership between facebook and time warner. the international social media pledge is designed to empower people of all ages to speak out against bullying. once you logon to facebook, search for stop bullying speak up. you'll see our anderson cooper with a message on how to take part. than many other allergy medications. omnaris. omnaris, to the nose! did you know nasal symptoms like congestion can be caused by allergic inflammation? omnaris relieves your symptoms by fighting inflammation. side effects may include headache, nosebleed, and sore throat. i tossed t allergy symptoms out of my party. [ man ] omnaris. ask your doctor. battling nasal allergy symptoms? omnaris combats the cause. get omnaris for only $11 at omnaris.com.

beyonce and her mom tina may

have been running their fashion dereon fashion label for years now. they just extended company into london. that's where our becky anderson caught up with them. she asked the singer about her world famous baby bump and her mom how she feels about becoming a grandma. >> are you struckling at all to find things you look good in, your husband may go, no! >> actually, i'm having so much fun. it is like been the most fun time. now that it's announced and i don't have to db it was really difficult trying to conceal. but now that i can be, you know, proud and excited about it, i'm having so much fun every day and shopping and it's just great. >> you must be delighted. >> i am. i'm over the moon. >> do you know what you're having, at this point? >> i don't. >> and if you did, you wouldn't tell me. >> all right, we'll have to bait and see what beyonce says. remember she dropped her baby news on the mtv music video

awards in london. she and her mom were in london for fashion week. you've been sounding off on our "talk back" question. carol costello is here with your responses. hi, carol. >> hi. the responses have been coming in so fast and furious, i'm afraid my facebook page is going to explode. but keep them coming. facebook.com/carolcnn. the "talk back" question today, why is evolution such a touchy subject. >> michael -- people are nod educated enough about evolution and brainwashed by their religious influences to not believe in it. rejecting science will hold the u.s. back. >> look here, i believe god created us. i don't really care how he did it.

>> man, max! that's tough! please keep the conversation going, facebook.com, carolcnn. it's been fascinating reading the responses today. >> it is a great question, carol. really interesting. thank you. appreciate it. good to see you. you told us what you'd like to see. your "choose the news" story just moments away.ve g it. with a verizon mobile hotspot, you can connect up to 5 wifi devices to the internet with lightning-fast verizon 4g lte speed. a gaming device. ereader. mp3 player. connect any 5 for wifi on the go. get the 4g lte mobile hotspot now for only $49.99. verizon is the place with the largest selection of 4g lte devices. on america's fastest, most advanced 4g network. is to take you from where you are...

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you voted, we listened. singapore is hoping to draw more people to downtown with an unusual park opening next summer. that combines nature with technology and some pretty surprising ways. >> reporter: it's gardening in a hardhat. but this isn't your typical garden. is singapore, a country with plenty of seed money to go green with style. these delicate plants are growing vertically in a 40 meter frame made of steel and concrete. they're aptly named super trees. these are a few of the 18 super trees in one of singapore's most ambitious green projects. gardens by the bay will cover 101 hectares in downtown singapore. its aim -- to bring together the best of nature and technology. >> the scale of this is unmatched. people have planted structures

like this around the world but never on this scale, or this quantity or never in the heart of the city. >> reporter: when completed, these trees will display a staggering array of fauna. some will even have solar panels to power other features in the garden, including two state of the art conservatories. we're here inside one of the major architectural features of this garden. this is 1 of 2 massive conservatories built to demonstrate different climates. the plan is to fill this space with more than 200,000 plants, plants from nearly every continent. to keep this conservatory cool in singapore's tropical environment, engineers developed a biomass energy system. dried leaves, grass cuttings and horticultural waste from around singapore. >> what we wanted to do is set a new benchmark in the way we develop gardens and also the way we would manage it. >> reporter: the project won't be finished until next week but interest is already high.

features like the super trees are sure to please the crowds. but will visitors walk away with a greater understanding of environment? >> the wow is the hook. because this is a garden to bring in people who normally don't go to gardens. and so you have to wow them first. >> reporter: the government has put $800 million behind this message. an investment for what organizers say will be a blueprint for green spaces in the future. cnn, singapore. >> if your choice didn't win or just want to check out the runners-up, i'll have lynx on my facebook page. grand, yes. bargain, no. at least not yet. while a bipartisan congressional super committee tries to find $1.2 trillion in deficit reduction, president obama today unveiled a $3 trillion plan. it is a combination of spending cuts and tax reforms on the scale of the