you wind up with this and that. she's going to join us in the after the show show, along with joe piscopo. come on over, joe. bill: 9:00 in new york. president obama's stripped down jobs bill has been blocked in the senate. scene outgoing democrat in the house taking a parting shot at the white house. who are you? alisyn: i'm alisyn camerota. president obama called that unacceptable. but republicans say this plan is just another stimulus. >> the next 24 hours you will find one more chapter in this

absurd political theater where the president offers a so-called jobs bill. to me it's stimulus 2.0. bill: a democrat serving five terms torching the white house. he says home foreclosures are destroying communities and crushing our economy and the administration's actions are infuriating. none of this is good news for the white house. first on the jobs bill, why did it go down in defeat? >> it went down because the vote was 50-50. it went down because the moderate in both parties, the people who would have been convinced to go with the president if he was more powerful didn't. ben nelson, mark pryor, joe lieberman on the democratic side didn't vote for it.

olympia snow, scott brown, they stuck with the republicans on this. there is no doubt the republican leadership wanted to stop the president. bill: they weren't even close to 60 votes. you wonder with president obama in virginia pushing for this jobs bill whether anything will get passed either now or in the coming months. do you believe that will happen? >> we have good evident maybe this won't happen. after this vote you wonder what did the bus tour of north carolina and virginia, what was it about? it didn't seem to move anybody. but there was another element of the jobs plan which is removing a 3% withholding tax on government contractors. democrats blocked that, too. because they wanted to just block it because republicans blocked theirs, which tells me

they are in total elect warfare mode and unlikely anything will get passed. bill: what was the parting shot from dennis cardoza in california. >> he's the 6th law maker in the house to announce he's not going to run. they are all blue dog moderate democrats. he's particularly upset about the president not doing enough he says to handle the home foreclosure crisis which is becoming an issue you amongst some republicans as well. it's an enormous problem in california, nevada, florida. a lot of those states that overbuilt. he's angry the president has not done enough on that issue. bill: it's breaking news this morning with the vote late last night. byron, thanks. alisyn: west virginia democrat joe mansion moved -- voted to

move it forward. he wants the government to offer low or no-interest loans to states instead of grants. he hopes other lawmakers sign on to his plan. bill: brand-new polling numbers show americans are not optimistic about our future. 72% say the country is on the wrong track. headed in the wrong direction. 93% believe the economy is either quote an extremely or very important issue. it also found 81% describe the economy as poor. and just 30% think the economy will get better the next year. watch that right track, wrong track numbers. alisyn: the republican candidates seizing on those numbers and set to unveil their

plans to change what you pay to uncle sam. herman cain will deliver his first speech on 9-9-9 and governor perry will unveil his flat tax plan. >> they are not interested in 9-9-9. what they are interested in is flatter and fairer. at the end of the week i'm going to be laying out a plan, we'll see who has the get idea about how you get these country working again. >> i invite every american to do their own math. most of these are a knee jerk reaction. we do provide a provision, if you read the analysis. something called opportunity zones that will in fact address the issues of those making the least. >> my plan is to flatten the tax for all americans. i believe in a level playing field for all businesses. not picking winners and losers. i believe in a level playing field for all americans so we

are all paying the same rate. and i believe every american should pay something, even if it's a dollar. alisyn: stuart varney from the fox business network. governor rick perry is going to unveil his tax plan next week but everybody thinks it will be a flat tax. is the advantage just that it's simpler? >> reporter: that's one of the advantages. there are others. it's designed to grow the private sector, therefore grow the overtall economy. number two, it offers incentive to people to work more, make more and keep more. third, it brings in more money so you might reduce the deficit. and, four, everybody will have skin in the game. because it would broaden the tax base. those are purely economic advantages. nothing to do with politics at all. alisyn: democrats and others have long resisted the flat tax

because they say it's regressive meaning that it hurts middle cal people more than the rich people. >> reporter: a flat tax would mean some people who currently do not pay any tax will pay some tax. richer people would pay less of an increase than poorer people. that is true, it is indeed regressive. plus there is a political disadvantage. you can't control the flat tax rate in the future. herman cain is 9-9-9, but it could go to 10-10-10 or 15-15-15 in the future. that happened in europe. also you will have all the lobbyists fighting over any and all exemptions. which duck is exempt from the flat tax. that will and battle royal and make it difficult politically to get this thing through. alisyn: it never agained much

traction but this may be the year for it. stu varney, thanks for joining us for your insight. bill: a brand-new poll on how the candidates are faring. a critical state, we have a new front runner. more on that moments away on america's newsroom. also, the death of moammar qaddafi. the burial was supposed to happen today but that's being delayed. questions raised over where to bury him and how to do it. and how did he die? a remarkable two days. what's happening on qaddafi's body? >> reporter: we understand that that delay is because of third party -- the international criminal court wants to examine the party because they have war crimes charges against qaddafi and want to make sure it is actually him. we understand qaddafi's body is still in misrata. overnight we know it was paraded

on the hood of a car around the streets there. also taken house to house so that these fighters in misrata could have photographs of their man, his body, bill. bill: do we know how he was killed? what does the evidence say so far, david? >> reporter: the libyan authorities claim that he was captured in that drainage ditch and then was -- as was moving towards the car to be taken to misrata he took a bullet to the stomach or shoulder. and another one in the head, and they are saying he wasn't executed but course that is very controversial and the u.n. is getting involved and wants to launch an investigation to find out exactly what happened to him. and a number of libyans over the last year, the internet, facebook they said they wanted to see this man in court to make him listen to his crimes. bill: thank you, in tripoli

again today. alisyn: the death of qaddafi hold special meaning for one group of people within the relatives of the victims of the lockerbie bombing. after years of anguish they say they are rejoicing over his death. the bombing of pan am flight 103 killed 270 people, including 189 americans. the emotions pouring out of susan cohen whose daughter was killed in that terrorist attack. >> it's the happiest i have been since december 20, 1988. he killed her and in a sense killed me. her body landed a mile from the plane. what a horrible death for a young person. alisyn: qaddafi has long since been considered a key planner of that bombing. bill: it's remarkable to listen to family members how much this

death mean to them to get closure for the loved ones they lost. alisyn: you have to wonder if they would have felt the same way if he had been captured and tried. i heard john mccain say that would have been better as a message of justice. bill: those are some of the many stories we are watching on a friday morning. it's called the misery index. what that is and why it's not been at these levels since the early 1980s. alisyn: he's one of the republicans demanding nangtss the solyndra scandal. >> you are throwing all your staff under the bus. you are saying it's everybody else's fault but you when you were in charge. tell me what you did saying it's my staff's fault, i didn't know, i can't do anything about it. you tell me what you are going to tell the taxpayers.

alisyn: congressman tim murphy on news of another taxpayer loan that went to build cars in finland. bill: exotic animals let loose by its owner in ohio. police are now saying why the owner may have let them run free. >> 911. writes your emergency. >> there is a lion on mount perry road. [ male announcer ] drinking a smoothie with no vegetable nutrition? ♪ [ gong ] strawberry banana! [ male announcer ] for a smoothie with real fruit plus veggie nutrition new v8 v-fusion smoothie. could've had a v8.

alisyn: the arizona governor lashing out at the feds over our border were security again. >> i think mayor case watching. i think everybody understands the issue we are facing. we happen to be the gateway. we want our border secured. it's as simple as that. we are grateful for the little

bits the federal government has done. but the bottom line is our border is still open and we are having people come across and we are the recipients of the drugs and the cartels and the crime and we are the gateway. alisyn: we'll have much more on securing our border when we tell you about the newest sanctuary city in the u.s. for illegal immigrants. bill: a new report that another $500 million loan in taxpayer money going to an electric car company who has its factory in finland. tim murphy serves on the house committee on energy and commerce. welcome back to america's newsroom. can you make sense of this? >> no, i can't. when the stimulus bill went through, i actually offered a couple amendments to make sure that steel purchased through this would be bought in america. that was accepted. but another one i offered in the

rules committee. we are looking as the purchases the government will be making. i thought if this is for american jobs let's put up or shut you have and say other things had to be bought in america, too. the rules committee never committed to make my amendment make to it floor and now we are seeing the outcome. bill: they said they could not find a facility in the u.s. capable of make these cars. you want the money intended in the rightful way don't want to go to a facility within the united states that can achieve that? >> the stimulus bill is supposed to stimulate our economy. if the purpose was to go to electric cars somewhere in the world, i suppose that's what done. but let's be transparent. but that's not what happened. the goal came to make these anywhere. that's a huge violation of what the american people were told in

the stimulus bill. bill: are there other compare swons this one? >> basically the stimulus bill became an earmark bill. when the president was touting this bill in 2009, he said if you take a look at this bill, the fact is there are no earmarks which some critics can't claim for legislation they vote for in the last years. he was criticizing congress for putting favorites in saying he wasn't going to do this. when you follow the dots it's clear these are going closer and closer to the white house and saying with lists of investors going to rahm emanuel and someone in the white house, profiles of kiers and other investors going to the white house. why do they need to know this? it appears the purpose was to protect some people or get money back to people. perhaps some donors or a presidential earmark and close

all the doors fierngd out why this was done. bill wrar you want is more. bill: what you want is more documentation. they are saying you have 70,000 pages of documents. ultimately the president has a blackberry. you remember this was a major point of contention when he told his safe wanted to have it when he became president. is it blackberry emails you want? >> the president touted on his first day in office that he was going have the most open and transparent administration ever, criticized previous administrations. he said every political appointee would have to sign a pledge to be transparent. he said the freedom of information act is the most powerful instrument we have to make our government transparent and i expect members of my

administration to live up to the letter of the law. my point is this. if you have nothing to hide, then why hide it? not only is the administration saying we are not going to send you our communications, but also when we try to speak with the legislature -- the counsel who wrote this contract which flipped the way the taxpayers would get their money back. they said we'll talk to you but not on record and i'm not taking an oath. bill: ultimately you make it executive privilege and we'll see how far it will go. alisyn: a major part of the healthcare law, the white house says it's financially unsustainable. but can they change a law that's already passed? bill has a bya for you. bill: could you feel the love the other night? mitt romney and rick perry with

new shots at each other. >> you have a problem with allowing someone else speak. if you want to become president of the united states you have to let people speak. first let me speak. the best approach to food is tkeep it whole for better nutrition. that's what they do with great grains cereal. they steam and bake the actual whole grain while the otr guy's flake is more processed. mmm. great grains. the whole whole grain cereal.

bill: 24 minutes past the hour. does your cell phone make you sick? the largest study ever find there is no link between cell phones and cancer. cell phone users have the same cancer rates as people who do not use them. "operation fast & furious" investigators demanding answers in the botched gun-running sting. the earth is moving under your feet if you live in the lone

star state. a quake rattling parts of san antonio. alisyn: i really hope -- bill: a shot at friends of mine ... alisyn: a key part of new healthcare law faces a big alcohol next buckeye state. ohio voters are set to decide on an amendment to the state constitution that would exempt them from being forced to buy health insurance. doug, obviously you have seen challenges to the individual mandate. what makes this one different? >> reporter: it was entirely citizen initiated. it was not introduced in the state legislature as it was elsewhere. this will be on the november 8 ballot in ohio because hundreds of thousands of citizens put their names on petitions. we caught up with some of the

organizers wednesday night. this proposed amendment says that no government quote shall compel directly or indirectly any person, employer or healthcare provider to participate in a healthcare system. here what is organizers hope it will do. >> first at the state level guarantees ohio could never be a state like massachusetts or vermont with a state-run healthcare system with a forced insurance mandate. at the federal level we believe this goes straight to the argument that's about to be before the supreme court that says the individual purchasing mandate is unconstitutional. >> reporter: opponents say this is a colossal waste of time because the supreme court is hearing challenges to the affordable care act and whatever they have decide will become the law. but they have a bigger problem with this proposed amendment. >> it's so sloppily written and

ambiguously written it would threaten and invalidate dozens of existing ohio laws and regulations that we use to keep our population healthy and safe. >> reporter: supporters say it was written to be simple and answer those questions. it's hard to gauge the most recent poll that was done. it was july 20. a quinnipiac poll found ohioans supported 48% to 45%. but that falls along party lines. so independents will hold the key, alisyn. bill: watch ohio every time. he caused a firestorm on comments linking the jobs bill

with words like rape and murder. now what the white house is saying about vice president joe biden in his own words. >> you are using a rape reference to describe republican opposition. >> no, no, what i said, don't screw around with me. >> do you think it's appropriate to use that language wage in such a way? that's good morning, veggie style. hmmm [ male announcer ] for half the calories -- plus veggie nutrition. could've had a v8.

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can give you doctor, hospital and prescription drug coverage for nothing more than what you already pay for medicare part b. with unitedhealthcare plans, you can access the pharmacy saver program, with prescriptions as low as $2, at thousands of pharmacies all across the country, including these. call unitedhealthcare now. tell us about your situation. we can help you choose the right plan for your needs. [ male announcer ] are you reconsidering your medicare coverage? you only have until december 7th to make sure you get the medicare coverage you need. call unitedhealthcare to learn about medicare plans that may be right for you. with some plans, you can enroll right over the phone. don't wait. call now. bill: herman cain pitching the

last major piece of his 9-9-9 tax plan. under 9-9-9 cain wants to throw out the tax code and replace it with a 9% tax on individuals, businesses and sales. now there are some added twists. what is the missing piece of 9-9-9? >> reporter: a plan to create so-called opportunity zones in america's inner cities. and it's nothing less than herman cain's answer to the charge that it would shift the tax burd to the poor. a study found that the 9-9-9 plan would raise tax for 84% of u.s. household. and 900% for those making under $20,000. but they said they did not have

full details on stunt zones. cain defended 9-9-9. and he hinted of what was to come. >> we do provide a provision if you read the analysis, something we call opportunity zones that will in fact address the issue of those making the least. >> under the plan every one living and working in an area that qualifies as an opportunity zone will receive tax breaks. he says this will cut down what is effectively a 70% marginal tax rate in inner cities. bill: it's drawing fire from whom and why? >> reporter: to qualify a zone will have to take steps to eliminate what cain called barriers to growth. they could abolish minimum wage laws and establish right to work

conditions which will allow workers to refuse to join unions. >> it's tough to take anything like that seriously. workers are working hard and their wages have stag night. to have herman cain make a statement that awant to further do away with the minimum wage is laughable. >> reporter: teamsters president says herman cain's opportunity zones appear to be an opportunity for corporate america to exploit workers and turn america into a third world country. you will hear from herman cain in detroit within the hour. bill: james, thank you for that. look at michigan and see what happened in that state the past 10 years. the economy on our map here. the deeper the red, the tougher your situation, the lighter the green, the better off you are

doing. michigan, if you go back to the vote of november 2008, you see the unemployment rate that stand at 11.2%. entirely too high. a lot of this has to do with the auto industry. the national average is 9.1%. the amount of jobs lost since the election of 2008 is not that dramatic. only down 14,000 jobs. but a lot of that has to do with the auto bailout that came out of washington to save many of those jobs. before the election the auto industry was struggling already in washington and gave a good hand to michigan to help itself. but if you look at some of these raw numbers out of michigan. in the city of draw it, unemployment is at 22.5%. the population in detroit over the past 10 years is down 25%. in real estate a survey found

33,000 vacant structures. detroit has had it tough and so has the state of michigan. we'll see if herman cain can make headway there today or not. alisyn: the white house defending comments by joe biden when he used what critics call incendiary language to promote president obama's jobs bill. let's watch. >> this whole jobs bill. this is just temporary. let me tell you, it's not temporary when that 911 call comes in and a woman is being raped. it's not temporary for that woman. it's not temporary to the guy whose store is being held up and there is a gun point at his head if a cop shows up and he's been killed. give me a break, temporary.

alisyn: juan williams is a fox news political an 'tis. bob blake is a former aide to president george w. bush. let's hear to what jay carney stead yesterday in defense of joe biden's comments. >> i think it would be hard to find anyone who doesn't agree with the simple equation that fewer police officers on the street has a direct effect on the crime rate. you can focus on the words or you can focus on the simple fact. the president put in the american jobs act a provision that would provide assistance to states to put teachers back to work and firefighters and police officers back to work. first responders. are they arguing -- are republicans arguing there is no correlation between the number of cops on the beat and the crime rate? that would be an interesting

argument to hear. it's a new one, a novel one, but would i like to hear it. alisyn: is it fair of the vice president to talk about rape and murder in pushing the jobs bill? >> it is when his facts are erroneous. the statistics he gave from flint, michigan were not true. either he lied about those statistics or he is incompetent. alisyn: we did research as well. he said if there were actually 53 murders in flint, michigan last year. the vice president said there were 65. but his general point was accurate. as the number of police officers decline the number of murders and rapes went up. >> he tried to allege that somehow republicans are against crime fighting. we are not at all. we are living in austere times which means we have to cut back. this is not the american jobs act. this is the union payoff act. his rhetoric was for attuned to

a union president than the vice president of the united states. it was accuse torry against republicans saying that we encourage crime to happen in our streets and we are not in favor of firefighters, police officers and teachers. we are in favor of a sensible budget within our means. we would love to have a cop on every corner but it's not going to happen. weep need more volunteers in our firehouses. we need more citizens in auxilliary patrols. we can't just throw the doors open and pay off the unions to get these guy reelected. alisyn: i said the number of rapes went up. the rape.went down. the rapes went down. the murders went up. so does that call into question this analogy or this illustration that the vice president is using? >> you can tell from brad's blood pressure. conservatives are incensed the vice president would even glaij this kind of -- it's

inflammatory, it's demagoguic. and it shuts down conversation and just angers people because it's toward a political aim which is parts jobs bill, giver was we want, giver the president and the democrats what they want. the larger point about the statistics, it's not a slam dunk. if you look over the last two years even as budgets have been cut, the murder rates, the rates of robberies down 10%. there may be a tipping point at which you say we can't have further cuts in terms of police, fire and the like. but we are not at that point. so when you hear the vice president engage in this kind of talk, you have to say this is the kind of harsh political language that just angers people. i'm not sure it helps limb. if his point is we need police and teachers and firemen. it hasn't carried the day with republicans. alisyn: brad since the murder

rate did go up in flint, just flint, is it fair for the vice president to point that out? >> yes, it is. there necessarily isn't a core st. louis between cops on the streets and the rise in crime. there are statistics that bear that out. we are in favor after sensible jobs bill, but not one that strictly pays off union workers. which is what stimulus one today and that's what the president's jobs bill does. for joe biden to be accusing the republicans of being against public safety is wrong it's inappropriate for a vice president to do that and you are seeing democrats come out and say this is just another say it ain't so, joe moment. the president needs to take the keys away from air force two away from this guy and assign him to desk duty. alisyn: what would have been better for the vice president to make his points. >> we need jobs in this country

and the republicans haven't proposed much in terms of creating jobs. we are at a point where we have to invest in our country. invest in promoting jobs at the local levels where state cuts threaten police, fire, teachers. we don't want that to happen. i don't think he needs to engage in demagoguic-type language that will make people think this guy is out of control. we need real change in terms of our economic development. republicans haven't been doing it, and that should have been his point. bill: 18 minutes before the hour. i want you to take a look at this. talk about a close call. i will give you one guess. the guy was surfing. you get only one guess. also the obama administration pulling the plug on the healthcare law. how do you remove one part after law that's been passed and

signed into law. bya, because you ask. back in a moment. i'm not a number. i'm not a line item on a budget. and i'm definitely not a pushover. but i am a voter. so washington... before you even think about cutting my medicare and social security benefits... here's a number you should remember. 50 million. we are 50 million seniors who earned our benefits... and you will be hearing from us... today and on election day. ♪

>> i didn't get the job done in massachusetts in getting the healthcare costs done in this country is something we need to do at national level and i intend to do that. >> if you want better competition and better healthcare you need to let the american people opt out of government medicine. >> obama healthcare is a disaster. bill: that was a sample from the other night. earlier in the week the administration saying it will pull the plug on a program called class, which was intended to provide long-term toins americans. that -- long-term insurance to

americans. how can congress scrap part of healthcare how. congress voted on it. is it legal? in new york we have florida attorney general pam bonnie. good morning to you. tallahassee a great town and a great question. can you remove part of this legislation and still insure that the legislation is intact or not? >> yes. because that's the way thank good knits was written. it has to be across warily sound. i'm having a hard time with that. but it has to be sound. and what their studies have shown. this is another gimmick. necessity pass this massive healthcare expansion without look at it, without knowing the cost. we know it will cost taxpayers a trillion dollars more than anticipated. now that they studied this class

part of it they find it's not sound. bill: i think the intend of this aspect of the law is good. and i'll tell you why. because in america today when you are a senior, you are on medicare so long as you can pay for it. it's when you have to prove to the government that broke that you get the benefits of medicaid. this was designed to prevent that. >> what they found not enough people were going participate in it. it couldn't pay for it. legally they cannot implement it. but it's like all the other aspects of it. if the costs were tremendous, there is a heritage foundation did a study, 39% of businesses now are saying they won't participate in healthcare coverage because of obama-care. so everything they are saying about this program isn't

happening. bill: you can remove part of it based on the way the laugh was written. you are fighting this in the u.s. supreme court. when will they take this case up? >> we believe this is a case of great national importance. if this isn't it, i don't know one that is. this is truly an important case. bill: would they do this this fall? >> yes, we expedited our brief and we filed our response about a month early. so we are moving it as fast as we can. we anticipate if they receive sit which we think they will be it will be this term. arguments will be in early spring and we'll have a decision by june 2012. bill: your expectation has always been 5-4, no matter whom you ask with kennedy being a swing vote what do you think he will do? >> i'm confident we'll prevail and we have 26 states in our

lawsuit. bill: the bya is hemmer@foxnews.com. the lines are open right now. alisyn: a brand-new poll out on the gop presidential field. this was done after tuesday night's debate. any surprised in scott rasmussen is going to tell us. bill: rick perry on the move. is it personal between perry and romney? [ male announcer ] what's the beat that moves your heart?

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bill: former president george bush visiting denver for a discussion on education. giving special praise to the mayor for his efforts to fix the educational system there. >> i'm here to honor a program called get smart. we believe you have an excellent

leader and appreciate the example you set. one of the things i will not tell people. you are going to get a hand you don't want to play in life. it will happen to us all. but you played it with class and you have a chance to lead and you are. bill: that coming agriculture as congress gets ready to rewrite parts of no child left behind. alisyn: we have new video of a car bomb rocking mexico's commercial hub in monterrey. that city ranked as mexico's third most violent. there have been 48 drug-related murders. and murders jumped 714% in just one year. in the past week alone. raging gun battles killed dozen of people. now an investigation find police and local leaders may have been

involved. steve harrigan is streaming live from monterrey. what is going on there, steve? >> it is change quickly here. just a few minute ago we heard a loud explosion. if that is a car bomb it would be the third one this week. you can talk about the statistics of violence from the cartels but it hits home when you talk to a mother who lost her son. 2 1/2 minute was all it took to change mexico's war on drugs and the life of samara forever. >> they said you are all dead. everyone started to run. we began yelling. i went to look for my son, but i couldn't find him. >> reporter: the carpets and tables of the casino were doused with gasoline. one of those pouring the gas was a policeman and the mayor's brother may have been involved. >> in every major city in mexico

you have a symbiotic relationship between organized crime, often violent. the local police and political establishment. >> reporter: in one of mexico's most prosperous cities, people are too scared to talk about the fire. but not simona perez. >> i'm not afraid. i lost my fear when i lost my son in that casino. i want mexico to change. >> reporter: she hold onto the ashes of her son who would have turned 19 today. the policeman who was arrested has begun to talk about what happened. the cartels have killed his mother, and brother. alisyn: it's the newest sanctuary city. we'll tell you where his are no longer allowed to enforce immigration law.

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bill: going to start with a fox news alert on election 012. herman cain is dominating a brand new poll from the home of america's first election contest. brand new rasmussen survey of voters in the state of iowa showing that herman cain's at the top of that republican pile with 28%, mitt romney at 21%. brand new hour of "america's newsroom" on a friday. hope you're doing well out there, i'm bill hemmer. martha works for megyn, allison works for martha. alisyn: you got it. bill: and we're still all one big happy family. alisyn: who's on first? [laughter] great to be with you. a few weeks ago he was just another name on a long list of

contenders, but -- bill: you throw in the debates, one or two, three or four, the former godfather's pizza ceo may have a shot. good morning to you, scott rasmussen. >> good morning. bill: i'm fine. what's going on, do you think? >> right now raising cain has everything to do with the fact that a lot of republicans are looking for somebody to fill the role of i'm not mitt romney. romney, clearly, has the support of the base of the party. a month ago rick perry was in that role, two months ago it was michele bachmann. now it's cain's turn. bill: if it changes that often, is there anything in your numbers that tells you cain has staying power? >> nothing in the numbers, what we have to see is how does herman cain perform now? rick perry came in as a front runner, and he stumbled in the debates. herman cain is facing some challenges about his 9-9-9 plan. people are starting to raise

other questions on other issues, is he up to the job. he has a platform now to make the case that he is the candidate. but it's entirely up to how he performs going forward that will determine it. bill: i golf -- i gotcha on that. you also went to iowa, and in that polling cain got 40% of the vote. he was still number one. >> that's exactly right. and, look, this is happening everywhere. in our national polling cain and romney are tied at 29%. when we talk about general election matchups between the president and republican contenders, herman cain does better than anybody else right now. he's ahead of president obama by two percentage points. mitt romney is down by a point, so herman cain is enjoying a great ride at the moment. bill: let me show our viewers that head-to-head poll. this is not yours, but that's still within the margin of error. >> right. and, sure, that's our poll. it's within the margin of error,

mitt romney also within the margin of error, but herman cain has a chance. there are questions about his organization, his policies, but he's got the platform, and it's his, the ball's in his court. bill: thank you, scott. >> thanks, bill. bill: scott rasmussen with us today. allison? alisyn: a hitting more context of iowa. the hawkeye state, of course, has been a crucial battleground for nearly 40 years. the iowa caucuses became the first contest of the presidential nominating process back in 1972. there have been six contested republican caucuses since then, and three of those winners have gone on to win the nomination. since 1972 the eventual nominee for both parties has finished in the top three in iowa, so it's important. bill: that's right. and that fact is not lost on people like mitt romney, of course, the former governor holding a lot of time in that state pushing his plans for reviving the economy. >> we cannot allow our nation to

continue to spend massively more than we take in. we have to cut our spending, we have to cap how much the federal government is going to take out of our economy, and we have to have a balanced budget. bill: while rom think was at that town hall -- romney was at that town hall, rick perry was releasing an ad basically calling romney a liar. alisyn: we're going to talk about gadhafi's death, discussing the future of libya. nato's secretary general saying the death of moammar gadhafi means the end of the campaign is much closer now. all across the war-torn country celebrations like these are breaking out, but libyans are distinctly aware that big challenges still lie ahead. ironically, hillary clinton visited the country just a couple days before gadhafi's death. here's her reaction. >> the death of colonel gadhafi has brought to a close a very unfortunate chapter in libya's history.

but it also marks the start of a new era for the libyan people. and it is our hope that what i saw in tripoli on tuesday firsthand, the eagerness of lib grabs -- libyans to begin building a new democracy can now begin in earnest. alisyn: fox's jennifer griffin is live at the pentagon. we are learning more details this morning from nato about exactly how gadhafi's convoy was stopped. what do we know? >> reporter: we know that nato now says there were 75 vehicles in a convoy leaving sirte at high speed. nato war planes dropped one bomb taking out one of the vehicles, then the vehicles dispersed, and there was a 20-vehicle convoy making its way. they circled back, and the war planes then destroyed what we're told is a total of 1 is vehicles. but may toe is going out of -- nato is going out of its way to

say they did not know gadhafi was in that convoy. quote, and this is from their statement: >> reporter: those are carefully chosen words because the u.n. mandate that they were operating under did not allow for them to target an individual or target gadhafi. alisyn: aha. and, obviously, the u.s. has spent a significant amount of money in libya since got involved. is there any talk of the u.s. taxpayers getting reimbursed for the cost of the military intervention? >> reporter: well, certainly if you listen to senators such as lindsey graham, you have that impression that the $1.1 billion could be taken out of the $36 billion of frozen gadhafi assets here in the u.s. >> they're going to pay us back. they have $34 billion of frozen assets under our control.

they'll gladly pay us back. >> reporter: but that's not exactly the impression you get when we spoke to the libyan ambassador yesterday. >> everything is negotiable. i believe that when the libyans see that the americans and the europeans they came to help them, to rescue them from the hands of this brutal regime just for the sake of the humanity, of course, it will have a different meaning if americans and the europeans, they've been -- [inaudible] >> reporter: so it's not clear that the u.s. taxpayer will ever get paid back. alisyn: right. because everything is negotiable as he just said. jennifer griffin -- >> reporter: especially in the middle east. alisyn: thank you. yeah. bill: we find the u.s. misery index at the highest level we have seen in almost 30 years. rising prices, painfully high unemployment pushing the unofficial index up to 13. that is a 28-year high.

eric bolling, anchor of "follow the money" on the fox business network is with me now. good morning to you. >> happy friday, bill. bill: what were you doing in 1983? >> i think i was finishing up college right about then. that was the last time it was this high, and this 13 number is the addition of 9.1% unemployment with 3.9% inflation adjusted. in other words, prices have increased 3.9% over the last year. so 13, the index number, back in '83 it was coming down from a high, jimmy carter high of 18. so on its way down during the ronald reagan years. hasn't approached, hasn't even come close to this number. once it blipped up to 12. but 13's a big number. bill: let me ask you this, eric, what is the misery index? what is its intent as it reflects on the economy? >> unfortunately, it's how the american people feel. typically what happens is when

unemployment goes down, that means more people are getting work, they're able to spend more, that pushes prices up. so it keeps that index kind of stagnant. or when unemployment goes up, fewer people have work, less must be, prices go down because they're not buying stuff. again, they balance each other out. here what's happening is unemployment's going up and prices are going up, so really you're feeling it from both ends. people aren't being employed, and prices are going up putting even further burden on both unemployed and those employed at a level lower than they're used to. and, by the way, the confidence in the economy. bill: and it reflects how this country's changed, especially in the midwest. these states have been changed possibly forever. eric, we'll see you at 5:00, right? >> yes, you will. bill: on fbn later tonight. thanks, eric. >> pi bye. alisyn: he's everywhere. it's home to the white house, supreme court, but today the

city of washington, d.c. thumbing its nose at uncle sam over immigration. bill: also one minute you're enjoying the sun, the next you're hanging on for dear life. ool al and mitt romney appearing to attack rick perry's intelligence in a new political ad already pulled off the web. is this all about bad blood between these two guys? we're going to ask a member of the romney campaign. >> let me finish with what i have to say. look, rick -- [inaudible conversations] >> a tough couple of debates for rick, and i understand that. so you're going to get -- [cheers and applause] you're going to get testy. [ male announcer ] cranberry juice? wake up! ♪ that's good morning, veggie style. hmmm [ male announcer ] for half the calories -- plus veggie nutrition. could've had a v8.

alisyn: there's some extreme weather pounding the midwest right now. a huge tree fell down nearly crushing one family's home. this is in michigan here. the national weather service says the storm whipped 60

mile-per-hour winds and dropped as much as three inches of rain. when these homeowners heard the wind, they knew they were in trouble. >> we heard a noise, department know what it was, but we knew it wasn't good. and we got up and tried to look out the front door and could hardly see out through it. >> when she roars, she roars. alisyn: she sure does. throughout central michigan about 45,000 people have lost electricity because of that storm. bill: so two of the republican candidates for that nomination taking aim at each other, mitt rom think and rick perry going blow by blow in recent debates. here's a challenge from rick perry on immigration toward mitt romney that sparked this scene. watch. >> you get 30 seconds, the way the rules here is i get 60 seconds -- >> but, no, the american people want the truth, and they want to hear you say that you knew, you had illegals -- >> are you just going to keep talking, or are you going to let me finish with what i had to

say? look, rick, this is a tough couple of debates for rick, and be i understand that. [laughter] so you're going to get, you're going to get testy. [cheers and applause] bill: coming up, stories are starting to be written about the animosity these two men have between each other. ray sullivan is the communications director for rick perry's campaign. how you doing, sir? welcome back to "america's newsroom". >> appreciate it. bill: does governor perry respect, or does he like governor romney? >> look, these guys go back a ways, but you've got to remember that there are very different records, very different philosophies. governor perry has cut taxes, been a strong fiscal social conservative here in texas, the number one job-creating state. mitt romney, liberal republican in massachusetts, has been all over the map when it comes to policy. the father of obamacare. so philosophically and from a vision for this country, these guys come from completely

different parts of the world, different parts of the republican party, and there are certainly ways to talk about that contrast going forward. we have done that. we will continue to do that. bill: and based on their political history, even perm history, do you call it bad blood? how do you categorize it? >> i think i categorize it as different philosophies, different records. you've got a liberal republican from massachusetts, raised taxes, father of obamacare, he's been all over the map on policy, and a rock-solid fiscal social conservative in texas who's cut taxes, created the best job economy in the country, and the voters are going to, ultimately, going to make that decision, and we look forward to that. bill: we've been looking at t the polling numbers and look what we found in iowa. we were just talking with scott rasmussen about this a few moments ago. cain's in the lead, and rick

perry's way behind at 13%. are you giving iowa what ayaans demand in this caucus fight? >> we are giving iowans a rock-solid conservative, a fiscal conservative who has concrete plans to create jobs in this country. a week ago friday in pittsburgh, a plan to jump-start 1.2 million good, high-paying american jobs. that will continue next week in south carolina with a major policy initiative on tax reform, regulatory fiscal reform be. and iowans in particular and republicans in general across this country want a solid, consistent conservative who can create jobs, and rick perry is the one in this race who has all that as well as the political infrastructure, the grassroots support and the fiscal financial resources to go the distance in this campaign. bill: i know you're going to be in south carolina next week and more on that tax plan will be

public then. and we look forward to bringing you back and debating that. ray sullivan, thank you. for the perry camp out of texas. >> thanks, bill. alisyn: the senate says, no, again to the president's jobs bill. the president blames republicans, but a few democrats broke ranks to vote against it, too, so are its chances now dead (we're going to ask one of its champions, the chairman of the democratic governors' association, martin o'malley of maryland, we'll talk to him in a minute. bill: and new developments on the search for baby lisa. we talk to the former lapd homicide detective, mac fuhrman -- mark fuhrman, about the latest details. >> up um, we don't have her. so everything's different. sorry. welcome idaho, where they grow america's favorite potoes.

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bill: 22 minutes past the hour on a friday morning. good news for cell phone users, they say a study involving more than 350,000 people finding mobile phones do not increase the risk of cancer. a dying german satellite falling toward earth will crash this weekend. the mini van-sized satellite will break into 30 nice chunks. we don't know where it's going to hit just yet. game two world series last night in st. louis, the rangers scored two runs in the top of the ninth to come back and beat st. louis. 2-1, the final. series now tied at 1-1. game three is tomorrow night when they go back to arlington in texas. it's been a really, really good baseball -- alisyn: i can tell. you seem very excited about this. all right, so back to politics. the senate once genre jekylling president obama's jobs bill,

this time in a test vote on a teacher hiring measure. it was a 50/50 tally, that's well short of the 60 votes needed to break a filibuster. before the vote florida senator marco rubio had this to say. >> you're going to find just one more chapter in this absurd political theater where the president offers a so-called jobs bill. basically, to me it's the son of stimulus. it's stimulus 32.0 -- 2.0. alisyn: the number of democrats also voted no on it. martin o'malley is chairman of the democratic governors' association. governor, thanks for being here. >> my honor. thank you for having me. alisyn: okay, it's not just marco rubio saying this, many republicans are saying this is basically just a second stimulus. they say the first one department live up to its promise -- didn't live up to its promises, so what's different this time around? >> we have an economy that for the first time since 2005 has actually put forth 12 months in

a row of net positive job growth. that's the good news. look, here's the problem, though, for every two new jobs created by the private sector, we are losing one job in the public sector. that's teachers, that's police, that's firefighters because of this bush recession and because of what that has done to local revenues. so this was an important piece of the american jobs act. and i think that the president needs to continue to fight. next week the fight is going to be about investing in infrastructure. in order for a modern economy to create jobs, we need to make modern investments. alisyn: okay. >> with right now we are undercapitalizing the job creation potential of america -- alisyn: you know -- sorry to interrupt, but i wanted to hit on what you said about that public/private difference because republicans also say that because this plan is a nonstarter for them, it would tax income over $1 million, and they say that those are the

private small businesses that would actually end up being hurt and they're the engines of the economy. let's listen to what mitch mcconnell, how he phrased it. >> this is a proposal to raise taxes on 300,000 business owners in order to send money down to states so that they don't have to lay off state employees. alisyn: okay. so you hear him. he's saying private businesses are going to have to pay for the public employees. your response. >> that's what they always say, but it's simply not true. the number of small businesses that actually report under that, under that format of the income tax is very, very, very small, small percentage. the truth of the matter is the only thing the modern day new era tea party republican congress cares about is protecting tax cuts for the very wealthiest 1% of our citizens who now have, by the way, more

than 40% of the nation's wealth. look, if their theory worked in creating jobs, we'd have jobs falling from the sky now because of all of the wealth that's now concentrated in the 1% of the tea party/republican donor base. but that's not the way a real economy works. you've got to make investments to create jobs. alisyn: thanks so much for coming in if, governor mark o'malley, with your perspective, and we'll see what happens next week. >> can thanks very much. bill: a bit of breaking news right now. news international, the british newspaper division of news corporation, the parent company of fox news, saying it will pay the family of a phone-hacking victim $3.2 million. the 13-year-old girl disappeared back in 2002. she was later found murdered. news international is accused of deleting voicemails from her cell phone in the days after she was reported mying, that news just breaking now. meanwhile, chilling video. a car that should be on the

road, and there is a toddler right in the line of fire. how did this end up? alisyn: washington, d.c. telling uncle sam on some levels to take a hike. we'll explain. [ male announcer ] drinking a smoothie with no vegetable nutrition?

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alisyn: it's noisy, it can smell bad and it's not sitting well with many locals. occupy wall street tkepl straeurts are well into the secondemonstrators are into the second month of swatting. nearby residents complained about the on going rally. they say they can't walk to work without being taunted. laura ingle is live in new york city. what went on there last night? >> reporter: you know, unless you like having a drum circle right outside your bedroom window, some people do, finding a balance between protestors and frustrated neighbors can be tricky. loud drums, ear-peering khabts and peoplpeering chants, and people using the streets as bathrooms. protestors told the board meeting last night they have instituted a good neighbor policy that will put a limit on time for drumming with a zero

tolerance rule for abuse of property. residents were also at the meeting saying they are suffering quality of life issues every since protestors descended on their community and they believe the good neighbor policy is laughable. >> our neighbors do not beat on drums while people are sleeping. they do not verbally attack people on the way to work, they do not break into buildings and vandalize them, and urinate and defecate in the street. >> reporter: they blasted politicians for allowing the occupy wall street siege to continue without any end in sight. alisyn: the drums could grea grate on you. >> reporter: many said they wanted to strike a balance, pointing out that protestors are doing their part by scrubbing the sidewalks and gathering the garbage. a negotiator said the group is making changes in terms of accountability and enforcement which some neighbors actually

appreciate. >> we support the demonstrators, and we as a neighborhood owe a great responsibility to be flexible and work this out. >> reporter: the community board passed a nonbinding resolution last night saying they supported the right to protest in the park but they wanted limits on noise and bathroom facilities. whether or not that will happen we'll have to wait and find out. alisyn: thanks for the update. bill: the nation's capitol is now a sanctuary city. washington d.c., it says it will no longer enforce federal immigration rules. meantime the homeland secretary janet napolitano says deporting illegal immigrants is not that easy. >> there are ten million or so illegal immigrants probably in the country, and the congress gives us the resources to remove approximately 400,000 per year. the question is, who are we going to prioritize?

bill: mark krekorian is with us and francisco hernandez is an immigration attorney. good morning to both of you. this is a trend that is growing across the country, not just in washington. various cities on boat coasts. mark, what is going on in your town in washington. >> this is political pandering by the mayor. washington has been a sanctuary city for a while. he's reiterating it as a political panned tkoer. pandor. the question is, is it a good idea for local police to obstruct immigration enforcement? the answer is no. you cannot pretend to be interested in public safety if you're not using immigration law, or at least access to federal authorities as one of the tools in your tool kit. bill: what is the effect if you do not enforce it do you

believe? >> you have denied yourself an important tool. there are something like 40 million immigrants in the united states, most of them not citizens, therefore subject to immigration law. the ability to use deportation, or detention of illegal immigrants, or even legal immigrants who have committed crimes is an important tool for law enforcement. we just had a panel discussion on capitol hill last week with sheriffs from around the country and they were unanimous in saying they needed cooperation with the immigration service to be able to protect your communities. bill: first on the surface, francisco do you have an issue with the police in washington d.c. not enforcing the law? >> well, mr. hemmer the point of thi this. it's not their job into force federal immigration law. its not that they are obstructing the federal

government. quite frankly the federal government can come in and look at the database. they don't even have to come in, they do it by computer. it's just the question whether the city has the resources to spend on doing the federal government's job. bill: one moment here, if it's not the job for the police, whose job is it? >> it's not. most police officers are not trained on enforcing or in terpting the immigration laws, unless they go through expensive training to become certified immigration officers. there have been a lot of mistakes where actual citizens or people who they didn't realize were citizens were put in an immigration hold and put in immigration proceedings and spent weeks in jail. i can tell you some. they are not obstructing the federal government, they are not doing anything against the federal government. they just said we are not going to do your job. everyone on both sides of the debate agree that the federal government, congress need to do their job and fix the immigration law. bill: i want to show our viewers how often this is happening now in various parts of the

country. we drew a map up. it's not as specific as many places i'd like to indicate, this is just the sample of the cities and cities that do not enforce the law. mark, address francisco's issues. >> the fact is they are not enforcing immigration law, what they are doing is partnering with the federal government and using immigration law as one of the tools in their tool kit in the normal course of their business. it's not like the police or sheriff's deputies are waking up and saying, boy, you know we need to enforce immigration law. bill: you're saying if congress changed the law then you would have a stronger instrument to implement. >> potentially. the point is the legal tools exist now for state and local governments to cooperate and partner with the feds. it's this administration and various local governments in certain big cities that don't want to use those tools, and frankly they do it to the detriment of their own

citizens. alisyn: francisco i'm almost out of type. what about that? if congress enforced it there would be no decision to be made at the mayoral level. >> it is the federal government's job. the point that the local police make is they don't want people afraid to call the police because of the immigration consequences. if there is a battered wife, a victim of a robbery, of a rape they wouldn't call the police if they think they are going to look into their immigration status. so police, particularly in a high crime city like washington d.c. they need to do their job and let the federal government do their job. >> don't look into the immigration status of rape victims, it doesn't happen. bill: gentlemen, thank you. it's a topic that is not going away, as you can see the proliferation in various parts of the country it continues. thank you for your input. fort worth and washington on the line now. alisyn: should the government be able to buy your land and name its price? that's what one small business owner says is happening to him. but he's refusing to roll over,

and today his fight goes to court. eric shawn is live in pennsylvania. explain what the fight is all about. >> reporter: the government took his building and now they may put him out of business. so says the owner of wally & joe's welding, it's been here in 60 years, but today could be the last day and he blames eminent domain. the city wants to take over and expand the pumping station next door and take over the building. in order to do that bob has to move his business. he's been here since he was 15 years old. his uncle and father started the business. he says he was shocked at eminent domain. he says the city has given him a check for $57,000 for the building, $47,000 for the equipment e. says that is not enough. to relocate it will cost him three times as much. >> this is not the united states of america that i know. i was sort of shocked, you know,

how can you -- i want to buy something from you and give you what i want and fight me in court later. by the way i'm taking it now. >> reporter: did you think this ever happens this way? >> no, i wasn't familiar with eminent domain. i've heard of it. but i didn't know that's the way the court worked. >> reporter: bob is right now in court with the authority. we'll see if he's going to be evicted. alisyn: what doe the city think about this. >> reporter: they say he's being treated fairly, they had appraisers come up with the numbers being offered and they are using eminent domain as the last resort. >> he didn't want to do it under any stretch of the imagination. we would not ever want to have our property taken away from us. okay. but in this case we had no choice. okay. we were running out of time and this is a project that has to be done. >> reporter: the authorities say they have to do this project to expand the local sewage

authority area. alisyn: we will see what happens in this eminent domain battle. bill: there are new details in the disappearance of missing 11-month-old lisa irwin, police searching the home for 17 hours. what they found and what it might mean in this case. alisyn: if this wasn't a great white shark attack be on the look out for the lock necessary months sister. >> we saw some guys at the south beach parking lot, he had a huge chunk out of his board, i thought he broke it on a rock. >> i saw a two-foot fin coming out of the water. it lifted my friend about ten feet up in the air. you came to, to share... to volunteer. and now, thanks to you, 10 communities have more to smile about. what's next? tell us on facebook.

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the #1 doctor and pharmacist a vacation on a budget with expedia. make it work. booking a flight by itself is an uh-oh. see if we can "stitch" together a better deal. that's a hint, antoine. ooh! see what anandra did? booking your flight and hotel at the same time gets you prices hotels and airlines won't let expedia show separately. book it. major wow factor! where you book matters. expedia. bill: you're going to have nightmares over this one. alisyn: i already am. bill: a surfer name bobby gumm has stories for his buddies.

a beast from the deep took a 2-foot chunk out of his surfboard. >> i was scared for my life. i've never seen anything like that. it's almost like witnessing an almost murder. here it is my good friend just being lifted up, like you see on tv, up in the air, and there was just nothing you could do. >> it felt like eternity. it was slow motion. it breaks about two football fields out to see. that was the slowest time in my life. bill: not a scratch on him. how does that work? he says he had to swim about 200 yards back to shore, he's alive and has a souvenir. alisyn: that is the part that would be nerve-racking, swimming back in after you saw the great white. bill: uh-huh, not knowing. alisyn: we want to update you on this very disturbing story, the kansas city police following up on dozens of out of state leads in the search for 11-month-old lisa irwin. she disappeared more than two weeks ago.

yesterday investigators spent 17 hours at her parents' home hauling away a carpet and bags filled with what they say may be potential evidence. mark fuhrman is a former l.a.p.d. homicide detective and a fox news contributor. we understand this was the first search done without the parents' consent them. had to go to a judge to be able to search the home. they took away a carpet and bags of evidence. what does all this tell you? >> well, when you have a permissive search it's more of a cooperative effort of the victim's family earth detectives or witnesses or people involved in the investigation in a positive sense. deborah bradley through down the gauntlet and basically said two weeks ago when i told you when i last saw the baby, well that was a lie. she is trying to claim there was some kind of a black out. you don't have a black out in the beginning, you have a black

out in the end if you do. the police now -- alisyn: i want to be clear, she had said that the last time she saw the baby was 10:30 at night when she checked the baby's crib or put the baby in the crib. now that timeline has shifted to i guess four hours earlier. >> well, when you shift the timeline now you have the availability of the victim to be kidnapped, killed or whatever circumstance was involved with the baby, now you've moved it back four hours, and this is clearly a statement that has put her in a suspect status solid. so they got a search warrant. a permissive search can be halted at any time. a search warrant has no control over the occupants earth owner of the residence. this is an absolute process that has to go through now, looking for trace evidence, or any evidence that would connect up to the suspect who is uncooperative completely and will not sit down on a

one-on-one interview with the detective and answer questions that can only be answered by the last person who saw the victim. alisyn: the parents say they have been cooperating with the police. their layers say they have sa lawyers say they are cooperating with the police. that they have sat down and been interviewed. why does it take two weeks to do this search of the home? >> at certain points you want to give the parents the benefit of the doubt. what happened on sunday? she changed the complete timeline. everything you've been working on is for not. you have four more hours of availability. the cooperation they were given was a lie. the cooperation where you won't be interviewed separately is not a cooperation. you are throwing a speed bump in the investigation. i doubt if there's been any direct one-on-one deborah bradley with a detective in an interview room since she failed the polygraph.

they can say anything they want. the cooperation they need is for the police to sit down with deborah bradley one-on-one and go through the investigation with the timeline minute by minute. when she got drunk, when she saw the baby, why did she make up the 10:30 timeline. alisyn: thank you so much for your expertise on this. we put up the tip line a minute ago. you can call that number or call 911 and tell police whatever you know. bill: you get the sense that something is going to break in that story at some point. alisyn: it has to. bill: and it hasn't. which leads us to the mystery of this young baby. alisyn: hopefully today. bill: there was drug violence spreading just across our southern border and some of the thugs may have got even help from a shocking source, we have that. alisyn: a nightmare scenario, a car plows through a store right into a baby stroller. >> everybody just ran, there was fire everyone. everyone ran to try and help. ♪

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alisyn: a horrifying seen caught on surveillance video in as you central kwrafplt an out of control car smashed through the wall and right into her baby's stroller. the stroller tumbling upside down, as you can see there. the panicked mom rushed to her son's side. we're happy to report no one was hurt. witnesses say the driver swerved to avoid another car. those strollers are strong, thank goodness. bill: thank goodness indeed. one cash-strapped town proposing a new tax to shore up the budget. but they are not going after the big banks or big oil they are going off big kheus ski. john roberts is live at jack daniels facility, in lync lynchbur, tennessee. a tax on jack.

>> reporter: that is what is being proposed. are you taxing because the company is successful. they are cashed for strap to build roads and bridges, even a new water treat plant. where to get the money, a concerned citizen says hey, there is this big successful distillery just at the end of town. they could he's lie afford it if we slapped a tax of $10 on every barrel that they filled with whiskey. i asked him what is the justification for that? he says, hey, they and the town of lynchburg are connected. jack daniels has used the image of the town to help sell its product, and so it's time to give back. here is what he told me. >> they have used lynchburg in their commercials, advertisements going back to the 1950s. the town of lynchburg and the people of more county have given to jack dan kwrals substantially

more worth than this is going to cost them. >> reporter: it adds up to about 3.4 centss a bottle. when you sell more than a hundred million bottles of whiskey a year that adds up to $4 million. charles rogers says, hey, why don't they add a nickle to the price of a bottle, they can recover the tax and make a little money back for themselves. bill: it is novel to say the least. how is the company responding to this? >> reporter: not surprisingly they don't like it a lot. they bring in a lot of tourists, 250,000. they spend a lot of money in town. they are the largest employer in the county, employ about 450 people. they account for a third of its tax base and already 60% of the price of a bottle of jack daniels is in some form of tax. tommy beam who is the general manager of jack daniels says, how much more can they possibly contribute? where does it end? >> we have been able to hire 25, 30 people here in the last four

or five months, and if our costs go up 4 or $5 million, you know, that is probably going to make us a little less competitive. we might not grow as much. we think it could be a job killer. >> reporter: there is the magic word there when you're arguing against the tax. they talked to businesses in town, they are pretty much split 50-50. some think it's a good idea but others are a little wary of biting the hand that feeds them. bill: six hours until happy hour, by the way, john. john roberts in tennessee. alisyn: meanwhile listen to this story. heavy artillery stolen from police. now the desperate effort to keep those guns off the streets .

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