economists are expecting plans to fall by 9,000 to 345 -- three under and 45,000. bad economic news is sometimes given the market's. liz: indeed. money is next. >> i'm melissa frances, and here is what is "money with melissa francis" -- "money" tonight. american ceo being held hostage in china by his own workers. chinese officials are sitting on their hands. is doing business in china even more dangerous than we thought? plus, too big to fail banks are under assault. some of the fed's most powerful officials tell congress that now is the time to break them up. are they right? legendary bank analyst joins us. and you made "money" today? they are cranking up the music style on the dashboard to celebrate. stay tuned to find out who it is, because it when they say it's not it is always about "money." ♪

melissa: our top story tonight, then the normal. the supreme court's historic decision striking down a key provision of the defense of marriage act or doma which means that same-sex couples have the same right to traditional benefits as traditional couples. with more on this one. >> reporter: hello. two key rulings. significant wins to reporters of same-sex marriage. the first of what the federal law. the defense of marriage act which blocked same-sex couples from getting federal benefits even if the marriage is a recognized in their own state. writing for the majority in the opinion, justice anthony kennedy said this. a class of persons deemed bistate entitled to recognition and protection to enhance their own at liberty which imposes a disability and a class by refusing technologist at is the state finds to be dignified and proper. traditional marriage advocates

point out the ruling still leaves the issue of marriage to the states and are urging their supporters to keep fighting. here is thomas peters. >> disappointed, but we're not going anywhere. the debate will continue. we are excited for the future. >> reporter: the second ruling dealt with proposition eight with them -- which amended the state constitution so that it will only recognize marriage between a man and woman. the supreme court disposed on the case on a procedural grounds, not getting to the merits of the case. what that does is leave it rolled -- lower-court ruling in place which originally struck down prop. eight. here is one of the lead attorneys. >> everyone around this country and in california particular wants to be able to marry the person that they love. it is a wonderful day for america because we have now taken this country, another important step, guaranteeing the promise that was in our constitution and a declaration of independence. all people are created equal.

all people have been unavailable right of life, liberty, and the pursuit of happiness. >> reporter: california officials are saying it will take some time to iron out the technicalities, but there are advising that counties will soon need a record to issue marriage licenses to same-sex couples that is specific to california only and does not affect the other states. melissa: it has been a busy day for you. thank you so much for filing the report. we appreciate it. now on to the numbers. today's supreme court decision is a financial win for same-sex couples in most cases. they're not eligible for thousands of spousal benefits previously off-limits under doma. here to crunch the numbers and lay out what it means is a net lee miller who specializes in this area. welcome to the show. we want to sort of set aside the politics are motion and really look at the money in the numbers let's start with some of the federal -- federal benefits, 1100. can you enumerate?

what are some of the biggest ones, biggest changes? >> the biggest one is that now if you are legally married and there are 12 states and the district of columbia a, you can file a joint federal returns which means you have all the advantages and there are some disadvantages. also are now eligible for social security benefits of your spouse if those benefits are greater. and also from the gift tax, you get a limited marriage reduction so it becomes a lot easier and less expensive to transfer assets to your spouse. melissa: it's interesting because it financially can cut both ways. you mentioned in terms of filing your tax return for people that are out there watching, when does it cost you more in this case to file a joint return? >> let's start with the good news. if one spouse is not working in the other spouse is a new file a joint return you're going to see lower taxes because of the sliding tax rate, the leverage.

if you're both making the same amount of money, you will probably play at -- pay a little more in taxes because they're is a marriage penalty. the worst case is if one spouse had social security and the other had wages, social security might become taxable. from an individual tax standpoint it at necessarily better. some of the deductions that you were not allowed to have before. melissa: there were others things that people should be aware of when it comes to medicare coverage and other things you might 54 if you were single, but now on this you will be getting some of the benefits of your spouse, so you would not qualify. what are some above? >> well, the tax credits, education credits to medical deductions. i mean, it is just like any other married couple. you need to do a tax projection to see what the benefit of being married from a tax standpoint in the benefi -- what is easier is everyone is treated equally. go ahead. melissa: what about past tax

returns. >> i was going to get into that. because this was ruled unconstitutional, immediately in the prior-year tax returns that are open by statute, and normally that's three years from when you file a return, you return. we recommend that you do in analysis and if you stay more than a couple of thousand it's good to go back and file amended return. the federal government will require you to file an amended return. it will require you on a go forward bases to file the return. we recommend you do that. another very important matter is now that you have the marital deduction for estate taxes, any ltv to couple that are married need to review the state plan because they probably need to change that a state plan. east have to have life insurance and many different financial vehicles to limit the tax penalty. that's gone. that means a lot of the plans to put in place to be revised. simplified, but revised.

melissa: that's complicated. i hate to jump but had to the bad news, what the implications for same-sex divorce? >> well, any time their is a marriage there could be a divorce. one of the good matters is that when you had a separation before and you were same-sex, the alimony the paid was not tax deductible. and it was also considered a gift to the other spouse. now same-sex marriage if you pay alimony will get a deduction on the payer's return and it will be in come, exactly the same as with traditional marriages. melissa: like with anything else, you need a good financial planner. all they long have been watching people talk about the immediate financial benefit. there are a lot of pitfalls. that is what we wanted to highlight. thank you for breen that to our attention. next on "money," one of the weirdest stories that i have heard in hostage by a 100 of his workers in china. that is him right there. chinese law enforcement is apparently doing absolutely

nothing about this. can he be freed from captivity? plus, you know things are out of whack when bad news for the u.s. economy is good news to the markets. well, the fed put the brakes on rolling back stimulus, investing giant liz and saunders joins us. more "money" coming up. ♪

♪ >> we spent the day. [inaudible conversations] all the exits. melissa: that is the ceo of specialty medical supply, chip starnes who has been held hostage by workers in his chinese manufacturing plants since friday. it all stems from the dispute over severance pay. he laid off 35 chinese employees after moving their jobs to india it does not look like he is in

any immediate danger, but it kind of makes you wonder if it is a to do business. they're not letting him go. for more on this i am joined by our resident china expert and author of the book the coming collapse of china, gordon chang. this is a crazy and bizarre story. this is a regular guy for florida u.s. manufacturing operations in china. he is not based there. he went to the plan to go, you know, on official business. he was moving jobs to india, and the rest of the plant got up in arms about the fact that it was essentially a misunderstanding. they believe that their jobs or being outsourced as well to india and that they wanted this severance pay. he tried to explain, you needed because you're not being fired, and that wasn't good enough. they have been holding of -- holding him for days. how bizarre. is this common? >> this happens, but normally it is chinese workers against chinese managers. that is common, but what we have

seen since basically 2007, eight, nine, ten, there has been a lot of unrest. and in those instances governments have instigated them. they have allowed workers to do this. stand back and not do anything. the police said to the workers, look, we are going to do anything. system hurt the guy. this will go on for quite some time, and the police will do anything. melissa: it's amazing that the police are doing anything because he is being held against his will. reelected him standing there talking to the bars in the window. he is talking to media around the world. but the same time there will let him walk up the front door. the kind of makes a joke about it when it talks about what the conditions like. yes complete the second sound bites for us. as was noted to say. >> d'agata shave today. that was given an electric razor them feeling pretty good today.

[laughter] going to stick with the blue shirt all the way through. this sort of like my little slogan. melissa: and mean, he's joking. he's obviously not that upset. at the same time he said that he has tried to leave a number of times. this stop them. why is the u.s. government not getting involved? is an american citizen who was on a business trip and now being held captive. >> has a great question because the u.s. council is standing right behind the police are also not doing anything. we should be getting involved because this is really an outrageous. they're is a fundamental dispute over what is going on here is some of the workers said they haven't been paid for two months. a lot of people dispute that. they should of been settled after the first day. the u.s. government released to talk to beijing. what's going on here is your encouraging spf to do something about it. you have to be much more active. melissa: his family lives in florida.

if unamerican businessman, especially someone who teeseven at the ceo of major publicly traded corporation. the head of the company because it's cheaper to do that. does that really make people think twice? huckabee have done something differently? drolen. >> this is really the price of doing business. workers who have been an abused across china. it would take yes for an answer -ecause for a number of reasons the dow just. u.s. stand as. this foreshadows a wave of labor unrest that will run right through china for a number of reasons. not only export oriented business, but domestic ones. melissa: he said it will take yes for an answer because he was saying to them the whole time they're old animosities that he is not firing and. you're still employed. and not giving severance because

in not fired. we're all still working together which did not. the whole story is so bizarre and amazing, not to miss the fact that he is doing interviews through bars. the story is far from over. thank you for coming on. not opening at a factory in china after all. coming upon "money", the u.s. economy did not do nearly as well as expected in the first quarter. apparently music to investors years. that's this hour. we will ben bernanke be forced to go back to the drawing board? we will get answers from investing tighten liz and saunders. some of the fed's most powerful officials trash too big to fail banks and from congress. the rules be hanged? a legendary bank analyst joins us. can you ever have to much "money"? ♪ ♪

♪ ♪ ♪ [ male announcer ] if you can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz deer. hurry, before this opportunity cools off. at od, whatever bubusiness you'e in, that's the business we're in with premium service like one of the best on-time delivery records and a low claims ratio, we do whatever it takes to make your busins our business. od. helping thwod keep promises.

when. melissa: this is dominating-boards within an car radio service fine. the services get into a half million activation is. shares jumped 8% his new album

debuted number one. despite expectations it was the third best album this year i'm one. milan sometimes things aren't always what they're cracked up to be. we found out that the struggle the economy grew at an even slower pace than expected. only 2%, and me. reported a number of b-2 in the courthouse. kidded me that he may be think his plan to be hit a break adelle down, chief investment strategy. were you surprised. >> said nimoy of a typical.

the good another round who. it was a little bit hamas, have the initial list who. so to see the numbers revised down is not a big surprrse in an and it was in a purely negative number. it was revised up. i don't think it's in the liver when. melissa: was it in the film of a free be. >> i still think will do a little bit of a second-half been no. at think a lift relative to what will probably be hidden 2%. the interesting thing him,

federal and government spending. if you look ahead overall gdp hidden has only grown into% has drawn-has 3 percent when men. thus likely to continue. it shows there's enough cushion to offset some of that. melissa: do you think that when he came out and spoke he had this number. >> manhattan to the santa september is the timeframe that would be the earliest point in woman one. by the census second quarter. more leading indicator type economic data which will move the needle. there was a rumor sent some

inside folks for talking about moving the time for be with the extreme moving yields a. melissa: with him. it has been a huge reaction. >> the feds have have grady had of its assessment of the economy later this year was unfounded and there are becoming more hawkish housing data, consumer

confidence and. that is starting to support the view that it's a good reason why the fed is considering tapering. is not because inflation is coming up hands. melissa: does this hon the and the advances we've seen him in. >> as it relates to housing him this is a concept of parallel of attention to him. the real mortgagee him. and we talk about gdp what we care about as real as gdp. you can apply the same. right now we have mortgages having to to a patent pins hidden it's actually n-and.

it's pretty high who. only at the point where prices come down busy? going from three and half, add up think it's a big game changing. melissa: and as high as it doesn't go up too much more. whittier think the lead is? >> it's hard this hidden. if we don't start to see significant upward adjustments for the second half the year they're is a reason to think will continue to see bond yields spike. a hidden. melissa: i feel there. thank you for coming non-. who now to our banking system. hidden chief federal reserve bank presidents be then.

the collapse of one of the biggest institutions to be devastating. there solution, break up the banks. here to tell us if that is the right strategy. it's a pleasure to see who believes her thinking. melissa: those a two separate questions. then he think it makes sense to break up the big banks kent i say that the cast his foe with the best manager out there, but it does seem to occur expands the even the pincus debate. >> they're multiple with some

44 trillion. him this is a massive move financial system. the notice it's constantly loses ground. canada's just north of san in china who which is moved live from being a country which has virtually no position in the international financial markets to warmer over 10,000 banks now operate when it is the highest aids is, he thought hadn't been been been half.

melissa: that is the argument. if reagan these banks had cut a chinese bank becomes the base minimum of. and with that look like? and friedrich of burbank and the continued rowland's. people watching of homeland college a day care? >> the chinese banks of the biggest. another reason a n the biggest bank in the next days and the world made $21 billion since. the smallest-made 22 billion who the basement 34. american banks are substantially smaller than the chinese banks. the chinese in and saying it's the smaller.

what does it mean him? for lose the global reserve currency which is china's cool who cut to push aside and take the world's reserve currency pairs to repair debt hadn't. interest rates would go up-. because of commodities, every product and american who will be this one thing. secondly, the job market will shift even more dramatically. in order to finance major projects is corporations will have to give iis hand hand. the american makes the only had the smaller banks and non, but there would be substantially smaller wound one. the american consumer will be her. melissa: really cook cut they say this is a we're perilous.

why can't we just creative system where we leave banks the size they are the creative system where they can go through bankruptcy him be. >> it's impossible. and it's impossible list of financial collapse is which is what this government thinks he can do hidden. a regular basis. aiden it's impossible whom to get rid of civic to fail. no country in the world who would be crazy enough other than this one to even think. if a bank is about to fail is because the economy is failing. it's incumbent upon the government to step in be and this is the economy in the financial system in. of the stock when he makes this incident and.

the news this taxpayer made a fortune on its investments in banks and the. the federal research and about 35 billion in. his of that increase in profit his right to the u.s. taxpayer who the ftse does not pay anything is showing a significant increase in the. by making an investment lawyer and a briton to save the, him. melissa: that's a great point. hell of your perspective and will. >> thank you. melissa: of next battle will he or will meet tonight in an him of manhattan we have the details of the. but it's all in a day's work hidden. that's just want a taste of what

has been racking haven't won. they should have just -- piles the "money" coming of the. the. ♪ whom ♪

if you have high cholesterol, here's some information that may be worth looking into. in a clinical trial versus lipit, crestor got more gh-risk tients' bad cholesterol to a goal of under 100. getting to goal ismportant, especially if you have high cholesterol plus any of these risk factors because you could be at increased risk for plaque buildup in your arteries over me. and that's why when diet and exercise alone an't enough to lower cholestel i prescribe crestor. [ female announr ] crestor is not righfor everyone. like people with liver disease or women who are nursi, pregnant or may beco pregnant. tell your doctorbout other medicines you're ting. call youdoor right away if you have muscle pain or weakness, feel unuslly tired, have loss of appetite,

upper bellyain, dark urine or yellowing of skin oeyes. these could be signs of rare but serious side effects. is your cholesterol at goal? ask your dtor about estor. [ female announcer ] if you can't afford your medication, astrazeneca may be ableleo help.

[ female announcer ] if you can't afford your medication, but i see a world bursting with opportunity,ople nervous. with ideas, with ambition. i'm thinking about china, brazil, india. the world's a g place. i want to be a part of it. ishares internationaetfs. emerging markets and single countri. find out why nine out of ten large professional investors choose ishares for their etfs. hares by blackrock. call 1-800-ishar for a prospeus, which includes investment objtis, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of prinpal.

melissa: don't you hate when you are nowhere near your phone charger and your phone is about to die? half a million dollars was spent on what it is calling project streak charge. same to you can charge your phone for free. i went down to manhattan. check it out. take a look. ♪ ♪ ♪ >> we came up with this program in the aftermath of hurricane sandy. we worked with them across the ciiy to help new yorkers.

we thought, why not bring it to new yorkers all the time. not just during emergencies. melissa: it is a half-million dollars for the project. we are feeling good about at&t. >> we want to make sure that new yorkers are using their divisors devices and their at&t services. so we have underground cellular service in many areas. we have wifi all over the city. a lot of people are draining their batteries, their marble charters. melissa: we have certainly seen this. we went to the charging station and they said the tree was

blocking the reception. melissa: one of the things that makes me nervous about this is that new york is the kind of place where you leave something and someone grabbed it enact we do not recommend that people leave and walk away or leave it for an hour and come back. but people sit down here. they can leave their phone a foot away, have coffee with a friend, make sure that they keep an eye on it. >> i read that 30% charge will happen in 30 minutes. is that what you're going for? >> it is pretty much the same. >> they need a way to ensure that they can reach their family or friends on the way home. it is a great way to get that charge. melissa: i kind of made fun of the fact that it was solar powered. the first one wasn't working. but if you go to a station,

people can trip over the courts because there are practical set up. okay, i'm not some apology and facing the music on "the today show." oh, boy. we have all of the details in spare change. you can never have too much "money" or too much butter [ male annocer ] if you suffer from a dry mouth

then you'll know how uncomfortable it can be. [ crickets irng ] butid you know that the lack of saliva can also lea to tooth decay and bad breath? [xhales deeply ] [ male announcer ] well there is biotene. specially formulat with moisturizers and lubricants, biotene can provide soothing relief and it helps keep your mouth healthy, too. [ applause ] biotene -- for people who suffer from dry mouth. [ agent smith ] i've found software that intrigues me. it appears it's an agent of good.

♪ [ agent smith ] ge sos to nurses to the right machines while dramatically reducing waiting time. [ teleone ringing ] now a waiting room is just a room. [ static warbles ]

melissa: my favorite part of the show is a little bit of fun with "spareñchange." okay, my first two guests. thank you for joining us. "the today show" this morning, polity and went on to defend herself. you have to watch it, that is all i can say. >> "i is what i is." i am not changing. i wish that i could take it back. if you are out there, please pick up the stone and throat so hard at my head that it kills me. i'm not going to sit here and tell everything that i have done to people of color. i'm not going to do it.

i have apologized. and i can truthfully say in my life that i have never with any intention to hurt anybody on purpose. and i never would. -that for a moment or if i amn uncomfortable. what is your reaction? >> it is a little bit dramatic. "i is what i is." i mean, come on. melissa: i have to say, polity and. i think a lot of us realize that this is a product of this situation. no one says hemi with iraq.

those words do not come out of normal people's mouths. either in private or public. if you think that way, personally to redeem yourself. melissa: in the way that the media portrays this, i mean, look at anthony wiener pulling ahead in the mayoral race or whatever. >> i just "on't want to die burden to those jokes. [laughter] melissa better with this or was it so strange that it did not make things better? >> the only thing that was accomplished -- she apologized. melissa: that is right, the apology is all over the place for polity in all over the place

where paula deen. so many people she was dropped from the brands. you think are brands will survive this >> it is certainly not for the health conscious. melissa: it is comfort food, it is feel good. i have purchased her products. it has nothing to do with her. she has products out there for cooks that people like. >> i think if you are comfortable with bigotry and racism -- melissa: i am not because i own her pots.

>> i think she needs to take some time off. go see some babies or kids. melissa: unbelievably, we are out of timq we will see you back tomorrow. here comes "the willis report." gerri: hello, everyone. tonight on "the willis report." another scandal as one oñ the country's biggest charities they gave millions in taxpayer dollars. and praised by president obama. also, workersst excessive retirement fees. will more employers push to lower those feeds? and be just to avoid the summer. we are watching out for you tonight on "the willis report." ♪ ♪ ♪ ♪