neil: we're not reining in spending at all that is the oblem. see you. tomorrows isometimes given the market's. liz: ieed. 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. inese 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 theed's most powerful officials tell congress that now is t time to break tm up. are they right? legendary bank analyst joins us. andou made "money" today? they are cranking up the music style on the dasoard to celebrate. stay tuned to find out who it is, because it when the say it's not it is always about "money." ♪

melissa: our top story tonight, then the normal. the supreme court's htoric 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 tditional couples. with mor 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 mority in the opinion, justice anthony kennedy said this. a classf persons deemed bistate entitled trecognition and prection to enhance their own at liberty which imposes a disabilitynd a c classy 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. he 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 propositionight 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 iseave it rolled -lower-court ruling in place which originally struck down pro eight here is one of the lead attorneys. >> eryone 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 ta some time to iron out the technicalities, but there are advising that counties will soon need a recd to issue marriage licenses to same-sex couples that i specific to california only and does not affect the other states. melissa: it has been busy day for you. thank you so muchor filing the report. we appreciate it. now on to the numbers. today's supreme court dision 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 tcrunch the numbers and lay out what it means is a net lee miller who specializes in this area. welce to the show. we want to sort of set aside the politics are motion and really look at the money in the numbers les startith some of the federal -- federal benefit 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 1states and the district of columbia a, you can file a joint federal returns which means you have all the advantagesnd there are some disadvantages. also are now eligible for social security benefits of yr spouse if those benefits are greater. and also from the gift tax, you get a limited marrie reduction so it becomes a lot easier and less expenve to transfer assets to your spouse. melissa: it's interesting because it financially can cut both ways. you mentioned in terms of filing yourax return for people that are out there watching, wn 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 t sliding tax rate, the leverage.e

amount of money, you will probably play at -- pay a little more itaxes 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 taxle. from an individual tax standpoint it at necessarily better. some of the deductions that you were not allowed to he before. melissa: there were others things that people should be aware of whehen it comes to medicare coverage and other things you might 54 if you were ngle, but now on this you will be getting some of the benefits of your spouse, so you wouldot 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 benefit of not -- 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 rul uncotitutional, immediately i the prior-year tax returns that are open bytatute, and normally that's three years from when you file a return, you rern. 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 mended return. it will require you on a go forward bases to file the return. we recommend you do that. another very imptant matter is now that you hav 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 gifto the other spouse. now same-sex marriage if you pay alimony will get deduction on th 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 ages. american businessmen is held 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. econy 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" cominup. ♪

♪ >> 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. itll 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 youonder if it is a to do business. ey're not letting him go. for more on this i am joined by our resident china expert and author of the book the comg collapse of china, gordon chang. this is a crazy and bizarre story. this ia 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 theirobs or being outsourced as well to india and that they wanted this severance pay. he tried to explain, needed because you're not being fired, and that wasn't good enough. they have been holding of -- holdg him for days. how bizarre. is this commo >> 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 saido the workers, look, we are going to do anything. syst 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. reelted 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 conditns like. yes complete the second sound bites r us. as was noted to say. >> d'agata shave today. that was given an eltric razor them feeling pretty good today. [laughter]

going to stick with the blue shirt all the way through. thisort 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 citen 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 aralso not doing anything. we should be getting involved because this is really an outrageous. they're is a fundamental dispu over what is going on here is some of the workers said they havet 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 beh more active. melissa: his family livein flida.

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

in not fired. we're all still working together whh did not. the whole story iso 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 i 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. weill ben bernanke be forced to go back to the drawing board? we will get answers from investing tighten liz and saunders. some of the f'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"? ♪

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'mo. milan sometimes things aren't always what they're cracked up to be. weound out that the struggle the economy grew at an even slower pace an expected. only 2%, and me. reported a number of b-2 in the courthou. 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 typal.

the good another round who. it was little bit hamas, have the initial lis 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. meliss 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 h,

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 h had this number. >> manhattan to the santa september is the timeframe that would be the earest point in woman one. by the census second quarter. more leading indicator type economic data which wilmove the needle. there was a rumor sent some

inside folks for talking about moving the time fore with the treme moving yields a. melissa: with him. it h been a huge reaction. >> the feds have ha 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 abo 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 hiddent'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 tnk it's a big game changing. melissa: ands 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 dedevastating. 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 sepe questions. then he think it makes sense to break up the b 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 positio in the inteational financial markets to warmer over 10,000 banks now operat when it is the higst aids is,e thought hadn't been been been half.

melissa: that is the aument. if reagan these banks had cut a chinese bk becomes the base minimum of. and with that look like? and friedrich ofurbank 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. themallest-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 ishina'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-. becae of commodities, every prodt and american who will be thisne 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 wod be substantially smaller wound one. the american consumer will be her. melissa: really cook cut they say thiis a we're perilous.

why can't we just creative system where we leave banks t size they are the creative system where they can go thrgh bankruptcy him be. >> it's impossible. and it's impossible list of financial collapse is which is what this government thinks he can do hidn. 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 t fail is because the economy is failing. it's incumbent upon e 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 ts taxpayer made a fortune on its investmts in banks and the. the federal research and about 35 billion in. his of that increase in profit his rig to the u.s. taxpayer who the ftse does not p anything i showing a significant increase in the. by making an investment lawyer and a brito to save the, him. melissa: that's a great point. hell of your pepectiv 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 shou hav just -- piles the "money" coming of the. the. i want to make things more secure.

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melissa: don't you hate when you are nowhere near your phone chargeand your phone is out to die? half a milliodollars was spent on what it is calling project streak charge. same to you can charge your phone f fe. i went down to manhattan check it out take a look. ♪ ♪ ♪ >> we came up with this program in the aftermath of hurricane sandy. we workewith them ross 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 chargi station and they said the tree was

blocki the reception. melissa:a: one of the things tht makes me nervous about this is that new york 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 an come back. but people sit down here. they can leave their phone a foot away, have coffee with a friend, , make sure that they kp 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 ed 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 actical set up. okay, i'm not some apology and facing the music on "theoday show." oh, boy. have all ofthe details in spare change. you can never have too much "money" or too much butter

melissa: mfavorite part of the show is a little bit of fun with "spareñchange." okay, my first two guests. thk 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. >> "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 alogized. and i can truthfully say in my life that i ha never with any inntion to hurt anybody on purpose. and i never would. -that for a moment or if i am uncomfortable. what is your reaction? >> it is alittle bit dramatic. "i is what iis." i mean, come on. melissa: i have to say, polity and. i think a lot of us reaze that this is a product of this situation. no one says hemi with iraq.

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

where paula deen. so many people she was dropped from the brands. you think ae 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 she has products out there for cooks thateople like. >> i think if you are comfortable with bigotry and racism -- melia: i am not because i own r pots. >> i think she needs to take

so time off. go see sombabies or kids. melissa: unbelievably, we are out of timq we will se the following is a paid advertitisement for starvista entertainment and time life's music collection. ♪ chances are 'cause i wear a silly grin ♪ there are artists we'll always remember... ♪ mo lisa, mona lisa ♪ men have named you there are beautiful songs, words and memories that will always touch our hearts... ♪ it's impoibe ♪ to tell the sun to leave the sky ♪ ♪ it's just impossible this is the music of your life.