policy? jenna: 140.6 miles. follow me on twitter. i'll have 14 hours of race pictures and be all by myself. you've got to keep me company for this race tomorrow. jon is going to do it. jon: not this year. maybe some other time. thanks for joining us. jenna: "america live" starts right now. shannon: with begin with fox news alert on the media fallout. top advisers to the obama campaign now admit -lg they were not telling the truth when they told reporters they had no knowledge behind the charges in a controversial attack ad that blames governor romney for a woman's death. i'm shannon bream in for megyn kelly. jay carney holding the daily briefing as the controversy escalates. it started when field workers seemed to suggest that governor romney was responsible for his

wife's death because he was laid off from bain capital and lost haste health insurance. it didn't ad up. campaign staffers insisted they did not know any details of the man's story. robert gibbs arguing that point on morning television. obama for america deputy campaign manager stephanie cutter said she didn't know the facts except she actually hosted a conference call in may that featured the man in the ad telling his story and she thanked him for it. obama for america traveling press secretary also seemed to be in the dark only to acknowledge late yesterday that, yes he was on the conference call, he had even been in one of their own campaign ads. what is the media reaction to being lied to by three of the top people in the obama campaign so far? not much. chris stirewalt is our fox news digital politicsed tore and host

on foxnews.com. it sounds like that admission was significant but we haven't heard a lot about it. >> you haven't heard a lot about it. part of that comes from the fact that there is a, how do we say, shannon, low threshold of truthfulness to sur mount in a political campaign there is a broad expectation that campaigns do try to spin and deceive, or at least elede reporters and don't answer any more than they have to. there is that. there is the other thing which has been well established over time is that democrats tend to pay less of a price when it comes to negative campaigning, when it comes to these sorts of statements about an ad than a republican would. judge ask yourself if mitt romney if that had been a senior romney adviser if we had been talking about kevin madden or eric fernstron caught in that situation and having to do a full take back it would have been on a number of front pages

of newspapers today. shannon: they said we have no knowledge, we don't know the facts of the story, that kind of thing. given what we know now, what do you think is a fair characterization about their position? they were dishonest, confused, they lied? >> well, you know, semantically on that you can call it whatever you want. the truth is why did they not have a better answer than that? that is the question that lingers here. we've talked a lot about, is the romney campaign ready for phraoeupl time prime-time, goodness sakes they knew a moment like this would come. how could any conversation inside the obama campaign have ended with the answer being, let's just deny that we know anything about it, wash our hands of it and turn away, goodness sakes, no. he was wearing the same shirt. he had been in the call. they used him in an ad, he was around. check the googles, see what it says. they should have done a much better job on this than just trying to stonewall.

shannon: today jay carney again, the ongoing press briefing is still in play at the white house. he was asked again and he said we don't control third-party ads. what the president is focused on is his ads. the president is being called to come out and distance himself from the ads as top democrats are doing. do you think the white house or president at some point will feel the pressure to come forward and say this is not the kind of ad we'd have linked to us even though we technically are not linked to this ad? >> we don't know whether the president, or a senior adviser to the president has made a call to this group, priorities usa to say, cool it, you got what you wanted -rblg, you got a bunch of press attention for this salacious ad, now quit it, and let the president get away from this. bill burton, the former obama aid that runs the superpac is getting what he wanted. he's getting the ad replayed and

talked about. it's driving the discussion this web. he's going to be tempted to push harder on it. and he may be incentivised to be even more salacious in the future. that is something the president needs to be concerned about because it makes him look like a bully. shannon: does it possibly have pr repercussions, is there a backlash, do some voters get turned off by it? >> i think voters, talking about low thresholds to sur mount. voters have low expectations from politician it will be hard. i will say this. this is what the president has been counting on all along, a really caustic, nass taoerbgs reall, nasty, gross out general relexan many voters may decide to stay home. the president figures he can win, marshal his base, young voters, minority voters, out there and win this election in a real tooth and nail battle. shannon: thank you so much for joining us on this friday, chris. >> you bet. shannon: we are monitoring the

white house briefing. jay carney has taken yes, sir about thiquestions about this controversy. we will have a live report in a little bit. you can log onto foxnews.com/politics to read more about the facts behind this superpac ad controversy. also getting attention this hour, internal homeland security documents obtained by fox news showing the obama administration wrestling this decision to get passed congress on the d.r.e.a.m. act. president obama announced his administration was tog t to allow some children of illegal immigrants to stay in the united states. a preliminary draft says relevant agencies could adopt a different definition of a misdemeanor and seems to suggest that no application would be rejected out right. a homeland security spokesman says such recommendations are strictly preliminary at this

point. we'll stay on it. drivers are getting and unwelcomed surprise when they pull up to the gas pump. aaa reporting the garage price for a gallon of regular unleaded jumping 24-cents over the last month. that means drivers are paying on average $3.67 a gallon. compare that to 2009 when president obama took office the price was $1.84. all of this could soon take a bite out of your wallet even if you don't own a car. doug mcelway is live at a gas station in millersville, maryland to tell us why. >> this is a gas station but it is mostly a truck stop. as a result of that we've had a chance to speak to a lot of truckers here this morning who were fueling up. the picture they are painting of these rising fuel costs is not a pretty one, especially the independent truckers who bear their own fuel costs. listen up. >> we have 75-gallons so far, almost 300 bucks, huh. >> yep. >> what is this doing to your wallet?

>> killing me. killing my wallet. it's ridiculous. and prices go up every day. they are not coming down. >> what is happening to you and your business? >> eventually it's going to fo fold. >> a chance to look at some of the totals and these pumps behind me, one guy pumped 58-gallons, spent $223. another guy pumped 78-gallons and spent $300. but whether it's the trucker, or the housewife who is hurrying her kids to soccer camp or the commuter the reason for these price spikes that we are presently experienced is exactly the same according to the american petroleum institute. listen up. >> well it all goes back to -- a lot of it to the price of crude oil. that has been ramping up quite a bit. it went from $78 a barrel all the way to 93, $94 a barrel in the past month or so. and that price is set globally by all of the buyers and sellers

in the global marketplace. >> reporter: demand is up but there are other factors as well. the drought in the midwest has severely curtailed the corn crop, corn of course used to make ethanol. refining capacity is down. a couple of refineries in the midwest are out of commission. we had that fire in california at a refinery which will reduce kpaps tee there. critics of the obama administration says there is no political will to open up federal lands and waters to offshore drilling, onshore drilling with the new technologies that are readily available according to the american petroleum institute. if we were to drill in those federal lands and federal waters within ten years we could be pumping as much as 4 million more barrels a day. shannon: thank you very much. the irs accused of letting more than a million fraudulent tax returns just slide, costing taxpayers more than $5 billion. in three minutes some eye-opening theories about why

they aren't pursuing these cheats. less than 24 hours we learned that iran must be much closer to getting a nuclear weapon, word that saudi arabia is reportedly blocking israel from using its air space. what does that mean? and extreme controversy, a father who appeared on oprah accused of waterboarding his own daughter while his wife stood by and watched. we will show you what they are offering as an explanation and we'll tell you how authorities are responding. >> she explained the act of waterboarding as him taking her head and submerg submerging her underneath the faucet while it was running. the water then would run up her nose causing her to gag or lose her breath and be unable to breathe. [ male announcer ] this is rudy.

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shannon: a real head scratch erin furniture kwraeuting a whole loft folks. this is more on a story we brought you first yesterday. auditor's report showing up to a million and a half, possibly fraudulent tax returns were

filed with the irs this year, that totals more than $5 billion in refunds given out. nearly 30,000 returns filed from a single address in atlanta. that totaled more than $46 million in refunds. they have sweet pads down there but there aren't houses big enough to hold all those people. in oxnard, california, 2500 returns to one address, that hauled in more than $10 million in refunds. they all had some things in common, first of all they weren't really pursued very hard. steve moore senior economics writer, "wall street journal" is here to discuss the second part of this. steve, it's baffling to look at these numbers. >> you know, shannon you're exactly right. you used the right word, which is infuriating. when i looked into this report i could not believe the massive numbers of apparently fraudulent taxpayer numbers. a lot of your viewers are probably wondering why would somebody have a tax return with a fraudulent numbe the answer to that is because a

lot of americans, as many as one-third who file tax returns actually get money back from the government, so it's not a day that they pay taxes, it's a day that the government sends them a check. what the irs report apparently indicates is a lot of people are filing these false and fraudulent returns so that they can get these checks from the government. and you're right, by the way, shannon, when you mentioned the figure $5 billion, we don't really know how big this is. it could be substantially higher than that, and one of the areas that is i think maddening to a lot of people on capitol hill is that the irs under president obama really hasn't pursued this very aggressively. shannon: just so folks know what we are talking about. we are talking about these itin, individual taxpayer id numbers that are for noncitizens, people who don't have a social security number but because of their involvement in the u.s. financial system they may be due some tax refund. what we are talking about here are clearly fraudulent versions of that. and i look at this investigation

by the appreciate redepartment, ig the inspector general who looked into this. his languages very strong, found an environment that discourages employees from detecting fraudulent applications, why would they be letting them slide? >> that is the great 64,000-dollar question about why the irs has not enforced this more vigorously given the size of the fraud. i think part of the answer to that is that the obama administration views sending out money to welfare recipients, or people who are getting these payments as a way to stimulate the economy, so they've allegedly, you know, held back in terms of the enforcement of this. this is one of the things that is driving our enormous budget deficit. we've seen an expansion of welfare unprecedented in our history. these are forms are welfare payments, shannon, when you said the word tax refund, some of them are the kinds of tax refunds that people get when they over pay their taxes, but most of them are paeuplgts fro

payments from the government to the individual way on top of what they paid in faxes. shannon: the allegation is that irs managers knew of this trouble back as far as 2002, ten years ago. if you see thousands of these numbers filings going to a single address, how would that not raise any red flags, and why do you think we haven't heard more about this? why isn't it on the front page of every newspaper in the united states? >> there is so much fraud going on in so m agencies you can't even keep up with them. we talked about the exactly same thing going on fraud in the disability program and the social security program and medicaid. it seems to be endemic throughout government and it ties in by the way with a poll that just came out i believe a couple of days ago when american voters were asked, what are your biggest concerns, one of the top three concerns of americans today, shannon, is fraud in government, that there is no watchdog, that people are getting these illegitimate payments and it's costing

taxpayers, billions, if not tens of billions of dollars a year. shannon: the irs says we have taken aggressive action to address these issues now that we know about them. do you have confidence that there will be a turn around, that there is will for a turn around at the irs? this is pretty damming evidence. >> i don't have confidence that this administration is going after these kinds of tax cheats. you haven't seen any pattern of this over the past four years. whether it's food stamps, medicaid fraud, disability, now irs payments. no i don't believe there will be vigorous enforcement under this administration. shannon: well it says the trouble predates this administration. >> that's true it goes all the way back ten years, you're exactly right about that. shannon: we'll see if the will to get it under control exists. steve moore thank you so much. perhaps the most dramatic plane crash footage we've ever seen, a camera catching the moment a pilot and several passengers realize they are going down and the camera rolled right until

the end. we will show that to you next. and the story on how the passengers managed to survive this crash. there is a news conference underway right now about what scientists are seeing in the very first colored pictures beamed back from the surface of mars. we'll talk with sue scientists that nasa is most excited about. as the u.s. prepares to elect a president new poll numbers show more americans are choosing their political parties based solely on race and class. so, is that hurting both parties? we'll debate. >> what it's like to slice and dice our country into red straits and blue states. red states for republicans, blue states for democrats, there is not a liberal america and a conservative america, there is the united states of america. [ male announcer ] it's a golden opportunity... to experience the largest, most efficient line of luxury hybrids on the road, including the all-new esh. ♪

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shannon: score one for american grit. u.s. olympian man io mitchell running the last leg of a relay on a broken leg. he had a half of a lap to go when he felt a popping in his left leg. he kept going. he helped his fellow americans to tie for first in this heat. a few doctors later doctors told him he actually had broken his left fibula. wow. check this out for humility on top of it all. he said he did what anyone else would have done. only a superhero. we've got our hands-on incredible video, a horrific small plane crash caught on tape from the perspective of the cockpit. the plane took off from idaho, death came knocking on the door and cameras were rolling at the time of impact. trace gallagher is live showing us what happened. trace, you're a pilot, right.

>> reporter: yeah, the video is amazing. i learned how to tphroeu i fly out of idaho. the temperature was hot and four guys in the plane was too much because the air was two thin. they said it was a beautiful day and they were going from the sun valley area over to mccall across the straight and they took off, and about four minutes into the flight they just kept noticing, shannon, they just weren't getting any higher, right, they were only flying about 70 feet above the tree. you hear that, that is the crashing. they crashed into the trees. i want to play this from two different angles and let you listen. two angles .

it's pretty amazing because you didn't hear anybody on board the plane say anything. they said that you could just hear the trees kind of crushing and breaking, and they had no idea what to expect. the next thing they knew they were upside down, and you see this picture right here, that's one of the passengers. that man is the pilot. he was the worst injured he busted his jaw and rib and had cuts all over him. take look at the plane, can you imagine four people surviving that, flying from the treetops down? i mean this is unbelievable video. there was a lot of speculation, that this thing was actually rigged, that this video didn't really happen, it might have been some kind of, you know, a prank, but we called the sheriff out there and the sheriff says, no, no, this was legitimate, there was a plane crash. we went out there, and we took two guys to the hospital. all four of them, by the way are fine, in fact three of the four went back to work a couple of days later. crazy video. shannon: they should all go buy lottery tickets. that is amazing, trace.

>> reporter: it is. shannon: thanks for checking it out. >> reporter: okay. shannon: recent research is showing that our political parties are divided along lines of race and class. up next we'll take a look at what is to blame and how this could become a larger issue for your country, plus two parents, one of them a nationally known pediatrician, he's been on oprah, getting a whole lot of unwanted attention after police say they water boarded their own daughter. see what the parents are offering now as their explanation. and welcome to the on board entertainment for new airline flying out of vietnam. the story on the fallout over this little fashion show da ncy, bikini thing, straight ahead. [music playing] ♪ sweetie, you have to scrub it first.

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shannon: after three years of hearing how fat cat bankers and wall street big shots took down tour economy the department of justice just wrapped up an investigation into one of the companies and found no wrongdoing. >> reporter: goldman sachs' reaction is we are pleased this matter is hinsd.

at the white house jay carney ducked a question on the decision. >> i would have to refer to you the justice department. i have not spoke on the president. he's focused on take measures that assist home eveners. >> reporter: the department of justice is leaving the door slightly open, quote. if any additional or new evidence emerges today's assessment does not prevent the department from reviewing such evidence in making a different determination if warranted. a bipartisan senate investigation found goldman marketed four sets of complex securities to banks and investors but failed to tell buyers they were risky. in the even the department of justice ultimately concluded they did not have enough to bring forward a criminal case. a wall street watchdog is not

happy. >> the politically connected and powerful wall street is getting away with crime after crime after crime. that's why wall street is a high crime area. there is no deterrence. they took the cops off the beat. >> reporter: the bipartisan senators have not offered normal reaction but senator levin said their report told inside story of an economic assault that cost millions of americans their jobs and homes. shannon: something tells me those responses are coming. we know you will have them. thank you, mike. >> pundits like to splice and dice our country into red states and blue states, receipt tornadoes for -- red states for republicans and blue states for america. there is no liberal or

conservative united states of america, there is a united states of america. shannon: this year polls suggest the election could sharply divide the election along lines of race and class. more white voters would choose governor romney over president obama. jackson is a radio talk show horse. angela is a fox news contributor to. how did we get here? >> we have always been here. the fact is whenever you have economic distress you have heightened racial distress. clinton actually won the white house with the majority minority vote, and a large sliver of white vote. this is not knew and it reflects the change demographics of the united states of america. it will take everybody to win the white house. the question is what do you do once you won. i think that's a real issue.

>> she is correct we have always been here from the standpoint that class warfare has been used to prey on the emotions of minorities. clinton moved to the center and signed the contract with america. truly he was a bipartisan president. i wish we had the barack obama i heard at the democratic convention 8 years ago. that was a man who united the country in speech. he says he would change washington as we knew it but it has gotten worse. >> the problem for me is this. people run one way and you have got to govern another way. we have always done this. i remember when president ray began then candidate reagan in 1980 opened his campaign in philadelphia, mississippi. they have to train station, they

have no -- come on, now, that's the -- why would you open there? race baiting -- race baiting is something republicans do. democrats have done. >> that was then, this is now. president obama was the one who said as senator obama, we don't have red states, we don't have blue states, we don't have liberal and conservatives. >> reagan is the standard for republican presidents. i want you to hear me. >> i heard you very well. having said that he was the saie politic as we know it and bring people together. there has been so much partisan divisiveness where the liberals wants us, blacks and women, latinos, minorities, to vote on emotions. i believe people are smarter than that. they will vote their pocketbooks

and purses and they will vote the fact they don't have jobs. if mitt romney has a clear message. ed ao -- advocacy grassroots. >> there is no way the republicans will let him do it. there is no way mitt romney would have become governor of massachusetts as a hard line right winger. there should be enough room in the republican tent -- i can't believe i'm saying this ... >> obama was the went who went against cory booker for making a statement. he pulled back feinstein for making a statement. >> oh, come on. shannon: is there room for a cross-class a cross-race for americans to see what they have in common? >> absolutely. if i may say this, in 1980,

reverend jackson, my father became president carter's chief surrogate. he was so unpopular he had to send reverend jesse jackson. what they did see is it would take a rainbow. martin luther king was on a poor people's campaign. we can get people to come together and see past these differences they think they have and get to what we have in common. which are values. everyone wants their children to be educated. everyone wants a nice job. >> 16% of the black vote in ohio. karl rove and ken melman ran radio ads promoting faith-based initiative. they voted conscience.

shannon: santita you said there are common values. most americans would get on board with. >> absolutely. that why you have a tea party movement and occupy movement. because more and more people are seeing -- >> the occupy movement was created. the tea party was people coming together. >> no, no, no. the tea party went all the way over there -- occupy will no, no, no. >> occupiers were paid. >> so were the tea party. who were harassing people. shannon: we are talking about finding common ground. this is not going to happen. we said we would solve all our problems during this segment. would both you agree both parties have used issues of class warfare and race to win over voters? >> we cannot deny that. more and more americans are turning away from that because

it's not working. both of these parties -- shannon: independents. >> like me. shannon: it's always entertaining to chat with you. a new report shows federal spending on entitlements exploding. it's a can't-miss debate and that's next. a ground breaking week in the history of exploration as we get our color pictures from the surface of mars. what scientists are seeing in those pictures that has them so excited. a woman caught on camera slamming her suv into a building and chasing down her estranged husband. what her lawyer says made her do it.

shannon: a vietnam airline in hot water for this.

[♪] shannon: the airline find. state-run media says the airline was find for staging the show without official approval. i guess vietnam's communist leaders may not have a sense of humor. they were celebrating their inaugural flight. the curiosity rover southering back dramatic images from mars. that is a calling images like these crucial to understanding the martian landscape.

curiosity is giving us an up close look at the grail crater where it land. nasa scientists say curiosity land a mile from its target inside the crater. after a journey of 356 million miles. what are nasa scientists most excited about now? let's bring in tom jones, a former astronaut and fox news contributor. >> hi, shannon. shannon: i understand the pictures are even more colorful than they expected. what does that say about what we are learning about the surface. >> we are starting to be able to identify what the surface composition is like and what kind of minerals we see in different places act surface and it gives us some targets of opportunity for study right there at that location. we have been able to identify that the superficial sort of

veneer, if you can say, of the dust and dirt on the surface is right over some bedrock. so right nearby there is bedrock that perhaps curiosity could examine also. shannon: how much of a success for nasa is it after spending 360 million miles, they lands within a mile of their target. this has to be huge encourage to the nasa folks. >> it is. this is the precise target the guys were aiming for on mars. the jet propulsion laboratory was using the science lab and curiosity to get inside the crater that hold the said ement ement -- the sediment rocks. shannon: we understand that as you mentioned they will be taking samples and reading those. we understand this at least a

two-year mission if the equipment hold up and the data transfer holds up it could be even longer. what do you think we'll learn? are they looking for signs of life, signs of water? >> the cool way nasa is pursuing the question about life on mars is a good way to do it. to chase the water. can we find environments on mars that might have been wet in the past that may have been conducive to the development of life? there would be nothing wrong with finding conditions that might be conducive to life on mars. but they are aiming to find out if there were environments, that way they could find what kind of microbial life could be found on mars and then begin to target that investigation as well. it's not as if we are expecting to see real martians in this particular instance. but we are looking for those environments in a step by step methodic way to tie those down

for sure. shannon: how can this mission and the data gleans from it ... >> nasa would like to foul with a sample return mission. the rover collects data but it needs to be close to a lander that takes on those samples and blasted them into space and returns them to space. this precision targeting we have seen with cure tossi is a step forward for a run mission. the budgets at nasa don't support the next step and i hope those will be restored. shannon: we through for sharing your expertise and these fascinating pictures. every day there is something to see. thank you both. she is an acclaimed olympic track star for the united states. but lolo jones isn't winning any

kudos from one "new york times" writer. she is accused of caring for about her appearance than her sport. straight ahead, this prominent doctor accused of using the same technique the cia used on terror suspects on his own daughter. did he really waterboard his 11-year-old? >> she explained the act of water boarding as him taking her head and subject morning her under the faucet while the was running. water would run up her nose causing her to gag or lose her breath. and be unable to breathe. you'll also find us in person, with dedicated support teams at over 500 branches nationwide. so when you call or visit, you can ask for a name you know. because personal service starts with a real person. [ rodger ] at scottrade, seven dollar trades are just the start.

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shannon: this is a fox news alert on our top story today. we told you at the top of the

hour how the white house was getting grilled on camera for the first time in days. there were fierce exchanges over a controversial ad from an obama super pac that seems to suggest that governor romney caused a woman's cancer death. the ad has been called inaccurate, unfair and beneath the president and those criticisms are coming from democrats. here is white house press secretary jay carney trying to defend the commercial. >> don't you have to say something to make this go away? this is the fourth day ... >> we do not control third-party ads. what this president is focused on is what he can do as president and what his message is about our economic future can be and could be as he campaigns around the country. again, perhaps others should then -- should be incumbent upon others to give evaluations and assessments and condemnations if called for of other ads that you

judge out of line. shannon: the questioning got more heated from there. we'll have more from you in just three minutes on that. a disturbing story getting a ton of attention. a father accused of waterboarding his 11-year-old daughter several times as punishment while his wife stood by and watched. he's a well-known pediatrician who has appeared on national television. dr. morris is a her to of several books on near death experience. he says the daughter is overstating what happened. hello, trace. >> reporter: you look at those books. dr. morris' books are very detailed detailing children encounters. now's being accused and jailed

for water boarding his 11-year-old daughter four different times. putting her face unfaucets in the kitchen, the bathroom, and the bathtub for as long as four minutes per time. the young girl told child services she didn't know why she was being punished but her dad said it would take five minute for her to get brain damage and she worried that her father would lose track of time and she would die. >> she explained the act of water boarding as him taking her head and submerge her fund -- underneath the faucet. the water would run up her nose and causing her to gag or lose her breath and be unable to breathe. >> reporter: the father threatened to wrap her in a blanket because she was fighting too much. her 5-year-old sister says she witnessed the so-called

waterboarding but was never given the same punishment' the 11-year-old said she was waterboard and her father would come over her hand, mouth and nose to stop her from crying. a neighbor said she saw the father drag the 11-year-old by the ankles across the driveway. that when child services began investigating. the father's attorney says this waterboarding thing has been blown out of proportion. he has no idea where the 11-year-old got the term waterboarding but it has nothing to do with what the father was doing and these claims are blatantly false. he believes the 11-year-old has some ajust and temperamental issues. shannon: innocent until prove inguilty. we are getting --

shannon: the camera doesn't lie. it shows this woman slamming her car into a building they are estranged husband works hitting him not once, but tries. she says it wasn't her fault. a police officer goes to chick-fil-a for lunch then gets punished by his bosses. he says he has been unfairly accused of bias. >> he got transferred overnight. without even asking him his side of the story. and that's the big issue for us is no due process.

shannon: this is a fox news alert. a fierce exchange in the white house briefing room over a controversial ad from a super c that seems to suggest governor romney caused a woman's

death. i'm shannon bream in for megyn kelly. this man, a former steel worker suggested mitt romney is to blame for the death of his wife. company's company apparently closed the plant where he worked and that caused him his insurance. the problem is romney wasn't with the company when plant was closed. his wife didn't close until years later and she had her own insurance through her employer for a while. press secretary jay carney says this issue is out of the white house's hands. >> i can't comment on every third-party ad on both sides. but do you agree that the campaign knew nothing about this man many story and it was because of bain capital's

actions? the campaign said they had a conference call with him and feature him on the obama campaign web site. >> i think the campaign addressed this and i'll refer to you their statement. >> the last two days in colorado he talked about those substantive issues. but part of his vision in 2008 was changing the tone. so the question is how can he stand by idly and say one of his former white house aides is running this thing that says mitt romney may have had something to to with someone's death. how do you stand by if that was part ofour vision? >> i understand your question. i would say i don't imagine you are asking the romney campaign why they haven't condemned the third-party ad that suggests the president may not an american citizen. i understand that or maybe better phrase it, i think i'd should be understood that we are not in control of thirdarty ads. the campaign and i refer out

presidt's campaign for discussions of campaign advertising paid for by the president's campaign. then i would ask to you look at what the president is out there talking about. you travel with us, you know. you hear what he says. you hear the argument he makes on behalf of middle class americans and where we need to take this country. and as a substantive policy argument, why we cannot embrace policy proposals that in the kindest possible light according to the tax policy center, would if implemented result in massive tax breaks, tax cuts for millionaires and billionaires paid for by middle class families. that's the debate and the argument the president is interested in making. shannon: ed henry is live at the white house right now. >> reporter: interesting

because jay carney went on to say he believes the major point is republican super packs have more money. none of those super pac ads suggest he had anything to do with anyone's death' the time line in this third-party ad. the time line tonight as you suggested about this steel worker wn he lost his job because of bain capital. when he lost his health insurance. the time line does not add up because his wife who later passed away did not lose her health insurance because of bain capital shuting down the steel plant. she had her own separate health insurance. this woman diagnosed with cancer died years after mitt romney had been at bain capital. priorities u.s.a., the democratic super pac has faced

questions about this. the obama campaign said they knew nothing about this steel workers' story. we have seen on the obama campaign web site they featured this man's story. they also had a conference call back in may where they featured the steel worker's story. there is some knowledge the campaign acknowledged they did have. that's no what they said two days ago. and while they keep saying this third-party group is far outside we have to remind everyone back in february the president blessed this democratic super pac and urged his campaign donors to give money to the group and david plouffe have been involved in fundraising for this group. there are far more republican super pacs out there. that is out there, that needs to be noted. but obviously this particular ad has got and lot of notice.

shannon: ed henry live from the white house. thank you, ed. governor mitt romney striking back. his campaign releasing a tv ad in response to the one from the super pac group. this is called america deserves better. >> what does it say about a president's character when his campaign tries to use the tragedy of a woman's death for political gain? what does it say about a president's character when he had his campaign raise money for the ad. shannon: it' not only the romney campaign objecting to that ad. top democrats and liberal writers and outlets calling on the president to demand that the ad be taken down. we'll talk to doug schoen and pat caddell. we'll talk to them about what it could mean if the president's election campaign continues to ignore the calls and what they think about the reaction today from the white house.

another fox news alert on troubling developments out of the middle east. israeli media says iran may be entering the zone of immunity. the point where an attack on its facility would be meaningless because they would have the know-how to build a bomb. reports are that iran is closer to obtaining nuclear weapons than the u.s. imagined. a top israeli official believes the situation with iran is more tense than what israel faced in the days leading unto the 1967 war which reconfigured the balance of power in israel's favor. a second report saying saudi arabia will intercept any jets trying to reach iran through saudi air space. also a report that the saudis used the u.s. that will eliminate one

potential flight path. k.f. macfarland is host of fox news live. what do you make of the reports regarding the saudi air space? >> it was intended to be a message to israel, which is don't do anything. this is very complicated with a lot of different moving parts. think of this as a three-man race. one of the runners is israel. israel says we are going to make sure that we stop any iranian attempt to get nuclear weapons. the main runner is iran with nuclear weapons. can they get to the finish line before israel stops them or the american election? the third runner is the administration. the united states. will the election happen before there is another war in the middle east? because people don't want another war in the middle east. and once it starts lit drag the united states in no matter who starts it because if israel starts it it can't finish it. the united states has to finish

it. shannon: where do you think saudi's biggest interest lies? is it they don't want a regional war that launches there. is it they have some interest in being allied with iran or they don't want to see anything erupt there? >> saudi arabia is a key player in this. saudi arabian officials are telling us privately please take out those iranian nuclear sites. the last thing saudi arabia wants is a powerful iran with nuclear weapons. an iran which will use its nuclear prowess to control the region. the saudis are encouraging the united states and anybody else privately. but publicly they have to say we will be tough. we are an arab country, we are a muslim country. we'll make sure israel does not attack iran.

shannon: how cumbersome would it be if they had to skip that air space? >> the most direct route is the one that will be the most complicated for them politically. but there are other routes. from israel many points of view it has to do a couple things to reach iran. israel has bombed the syrian nuclear sites. it bombed other parts of the nearby region but it's never gone as far as iran. why? it's 1,000 miles. there is no aircraft israel has that can make a ruined trip. so they have to refuel in the air. and whether they go over turkey or over iraq or saudi arabia or kuwait they have to evade those country's air defense systems. can the israeli aircraft make it there, drop the bomb load and come back it makes it very complicated. that's why i think one of the most important relationships

israel and the united states have in the next year or two is the relationship between the president of the united states and the prime minister of israel. if the president of the united states says to israel, don't attack, we'll help you, we'll take care of it, let sanctions work, we'll stop iran, will the prime minister of israel believe it? or will the prime minister of israel say we cannot afford a nuclear iran and america if you are not going to act we'll have to act alone? shannon: always good to see you, thank you so much. there is a new report on budget. it shows spending on entitlements is exploding. that's leading to a debate whether our problem is entitlement spending or americans who feel entitled. a police officer says he's being unfairly targeted after he went to chick-fil-a for lunch and found himself accused of intolerance in the squad room. we'll report the facts, you can decide. a woman caught on camera

slamming the car into the building where her estranged husband was working hitting him not once but twice. >> you said you need an ambulance. >> yeah, a lady just drove through the building. she was trying to hit her husband, i think. i don't really know. ng day teaching the perfect swing begins with back pain and a choice. take advil, and maybe have to take up to four in a day. or take aleve, which can relieve pain all day with just two pills. good eye.

shannon: a police sergeant is getting national attention he says base went the chick-fil-a fast food chain for lunch. is there more to the story? >> reporter: it happened on chick-fil-a appreciation day. dallas police sergeant mark johnson came into the briefing room with a chick-fil-a

sandwich. he set it on a table and proceeded to give the briefing which included mentioning chick-fil-a. two lesbian officers said his comments and actions left them embarrassed and humiliated. the officers say that sergeant johnson was trying to send them a message. sergeant johnson was quickly reassigned and the police union is fighting mad. listen. he got transferred overnight. without even asking him his side of the story. and that's the big issue for us, no due process. >> i think there is a misunderstanding went two. >> reporter: the sergeant has been reassigned to the overnight shift in this case. we contacted the dallas police

department and they say clearly there was some conversation about click filet between sergeant johnson and the other two officers. they are investigating both sides much this. for the time beg's reassigned until internal affairs looks into it and comes to some sort of conclusion and what happened. shannon: we'll follow it. trace, thank you. back to our top story and the fallout from an obama super pac ad that suggests mitt romney is responsible for the death after steel worker's wife. the romney camp points out an obama campaign staffer got caught lying about what they knew about the ad and the story. an "l.a. times" editorial writes "even for an attack ad it goes too far. lanny davis said bill burton needs to go back to ethics school. he knows the ad is misleading

and disgusting and he needs to apologize for it. the washington post says it goes too far given that his wife died five years after the close of the plant. a well-known democrat wrote a comment for "the hill." he says this is over the top, it's unworthy of a sitting president it embarrasses me to be a democrat. doug schoen is a former adviser to president clinton, and we are glad to have you on this story. pat, do you join the calls of those who say it's too far or do you think it's fair play? >> i join the calls. what i'm upset about is -- look, this is clearly -- i think it's obviously coordinated. they have the same guy in two

commercials. we have stephanie cutter who has accused governor romney of being a felon. saying we didn't know. then she is on the phone call. what i'm concerned about is we have lowered politics into the suer. so far down -- into the sewer. so far down there is no bottom. if this had been done in reverse they would be all over governor romney. why isn't the white house being pressed and the president. the president is acting like the king. someone rid me of this tiresome priest but i have nothing to do with i'd. he has everything to do with it because that chicago's gangster politics at work. shannon: we have seen romney's negatives pick up. there has been a relentless strategy to go after him and his record sat bain. in particular the negatives are going up on romney. as a pollster, do negative ads

work and how do you persuade the campaign to stop using them? >> they do work and they are working here. the reason why? obama has a 4.5 lead because negative ads have driven governor romney's up to 50%. but i think the white house made a big mistake. i think pat is right. they should disavow this ad. you heard jay carney a few minutes ago dance around it. truth is truth and facts are facts. when people make mistakes you say we went over the line, we shouldn't have don't and you walk away from it. the white house is betting they can tougher it out, this ad can run and they can stand on legal niceties like it was done by a super pac we have no connection with. that may be literally true, but what is sure not true is any of the allegations in this isment. -- in this 'sment. shannon: there was an

ad. at the time romney came out publicly and said i want to make it clear. i repudiate that effort. i think it's the wrong course for a pac or campaign. cot president actually win some support by stepping up to say, pat, you know what? i'm going to step away from this one, take it down. >> yes, and he would be consistent with what he claims to be as his image. i think this duality, the little man behind the curtain is harmful to him potentially. i want to say he should do that because his whole campaign -- remember i'm going to unite the country. we have to get rid of this kind of politics. yet he gets into the girt. when the romney did his -- when

that super pac memo from a consultant claiming he should do this through a super pac, not the romney super pac, it was on the front page of the "new york times." and romney was challenged. the president is not being challenged. there is a reason people are watching the olympics and not watching the campaign. one is it makes you disgusted. one makes you proud. you figure out which one it is. shannon: is there a double standard on these two campaigns? >> i think what there is is a degrading of our politics. pat is subject and -- is accurate. neither side talked about the issues that matter. the economy, growth and the like. obama may be tactically smart but he won't be able to govern effectively if he keeps dividing. governor romney has he sinks in the polls has to change strategy. until both candidates do that we'll be in a very bad place.

shannon: doug and pat, thank you both very much. be sure to tune in to campaign insiders this sunday at 5:30 p.m. eastern on the fox news channel. can a pill cause to you run down someone with your car. that's what one woman says happened to her. she was caught on surveillance video. including the gs and is. [ engines revving ] because control is the ultimate expression of power. [ revving continues ] ♪ during the golden opportunity sales event, get great values on some of our newest models. this is the pursuit of perfection.

shannon: a woman on trial for trying to mow down her husband with an suv. she is claiming the anti-anxiety medication xanax led to her bizarre behavior. report report she says she went to her husband's office building

and she heard him talking to another woman saying to another woman that he loved her. that's when apparently she claimed she took a handful of xanax, and she doesn't remember hearing anything after the conversation with her ex-husband on the phone with apparently his new girlfriend. maybe this would jog her memory. this driving through the building and trying to mow down her husband. you said you need an ambulance? >> yeah, a lady just drove through the building. >> she just drove through a building? >> she was trying to hit her ex-husband, i think, i don't really know. >> she is injured? >> i don't know. >> reporter: after plowing into the building and trying to run down her ex-husband she finally hit him. she broke both his legs.

left him with 63 stitches on his arms, leg and face. you see those elevators he's coming out of, if anybody else had walked out she would have injured them as well. the husband says before she tried to run him down in the lobby she walked into his office and played "angry johnny" with the lyrics i want to kill you, i want to blue away and she made her hand into a gun and made that gun thing sound. she says no it never happened and she didn't try to kill him, she thinks. she doesn't really know. shannon: thank you. as the new budget report shows spending on entitlements is exploding. there is a debate whether the problem is entitlement spend or people feeling entitled.

u.s. rock star lolo jones is being accused of caring more about her appearance than her sport. >> why do you think folks like to go after people like jones. she is a conservative, she is christian. it seems like they have become popular punching bags.

shannon: a new look at federal spending is raising serious questions about entitlement costs and the future of the country. in 200044 million -- in 2000, 44 million americans were on medicaid. federal spending on these programs far outpace inflation. it's gone from 5% of federal outlays in 1970 to 16% last year. but some folks are asking is our problem the entitlement spending other growing number of americans who feel entitled. time for a fair and balanced debate. mike gal -- mike gallagher is a syndicated radio host. who do we blame? what's going on here? >> why would we blame anybody? why does it have to be blame.

why can't we look at it as a condition of circumstances beyond people's control. for example, having the worst global recession since the great depression. also we have an aging population where the baby boomers are coming into the time when you use medicaid. there is a huge population of people aging out. that's going to change as time goes on. but i would like to point out. corporate income taxes, percentage of the gross domestic product was 3.2%. 2009, 1%. tax expenditures, money we forego because of tax benefits to corporations. in 2012, $58.9 million. he always focus on the poor and the needy. shannon: the corporate tax rate is one of the highest in the world. we are just playing on words here because there are many people who legitimately need

help and many people who paid into these system. so with that in mind, mike, your take on this. >> the question is how to we help those people who need our help. to liberals they love these numbers. there is a statistic that jumped out as me. according to a senate budget committee, over 100 million americans are receiving some form of federal welfare right now in 2012. to a liberal they hear that and they smile. to a conservative we say we are experiencing ourselves into oblivion. the problem with these social programs. this is welfare. i remember back in the time with ronald reagan. there was a quaint debate about people who relied on welfare. now when you look at that kind of a staggering figure, this is a mindset that is strangling our country that people feel entitled and they have their hand out, and the sheer up ins of it make it impractical to

sustain this for our kids and grandkids. >> you want to make it a left-right thing and you want to blame people. it's not a left-right thing. the numbers go back to 1970. shannon: i want to put up numbers that tracks numbers from the 60s. we have got all kinds of things. defense, education, police, fire, jail, transportation. it's there on your screen. you hopefully can get a peek at it from where you are. vastly jut stripping everything else is that bright red line at the top its entitlements. it outpaces everything that we agree are good and common society needs. how do we reign that in. >> is social security and medicare that we pay into? unemployment we pay into. some of these dollars are dollars we are spend on ourselves that we contribute to. >> but, allen, you said that i

made it a left-right issue. you came out of the gate saying conservatives think this is because people are lazy. there is a fundamental difference between your side and my side. the debate is, is the government supposed to provide for everybody or not. this whole idea that conservatives are hard hearted and we don't want to help. we want to help. we just don't expect the government to pay for everything. >> tell me what you would cut. we have a presidential candidate on your side who has not said where he's going to cut. where should the cuts be? what about the corporations we talked about what the numbers. shannon: i want to bring in another number. this comes from irs data. 49.5% of americans don't pay any income taxes. is there a problem with people feeling they don't have skin in the game? >> that's federal taxes.

>> there is such an inequity in the tax code. allen knows and his side knows after of americans pay no federal income tax. they say the top 1%, we have to tax them a little bitmore and that will solve all our problems. >> the bush tax cuts were supposed to go for nine years. they were not supposed to extend beyond 9 years. these are doing away with cuts that were supposed to end a couple years ago. >> how does somebody who doesn't pay any federal tax think they have skin in the game? >> they are paying payroll, local tax and county tax. to say they are not paying income tax is misleading. shannon: would you agree it's time for tax reform that broadens the base, changes the rates? >> the rates should be changed to allow those to pay more who

make more. shannon: do you think it's time to include more people in the tax base. >> if they can afford it. >> who decides that? >> if you can't afford it you can't pay. you go where the money is. the most inequity able thing and liberals love the class warfare. already the top 10% of americans are paying a wildly disproportionate percentage of tas. everybody knows it. it's got to be reformed and that's where you stop the tidal wave of spending. >> where are you going to get the money from? >> how about going after some of the people who don't pay any income tax. >> how about the tax rates under bill clinton when we were thriving economically. a family can't survive unless you have enough money coming in.

>> i small business owner can't survive if he happens to bring in over $250,000 a year and obama wants to tax it. >> this administration has given break after break to small businesses. that's not accurate. shannon: mike, you want to challenge that? >> i don't agree with alan. to say there have been tax breaks for small businesses. the stated position of the obama administration is to tax people at a higher rate who earn $250,000 a year or more. that's farmers and doctors. come on, alan. >> the tax rate would go from 35% to 39% on dollar one after $250,000 of taxable income. it's not all your income. it's the first dollar you make after $250,000. >> where is the increase for people who aren't paying any federal income tax whatsoever? shannon: we'll have to leave it

there. i can see there will be no come comeoo. lolo jones is an olympian who broke a couple records on the track in the last couple years. why is a "new york times" writer accusing jones of caring more about her image than her sport. >> he makes mention of the fact that she has posed not always fully dressed. though not showing private parts. but in ways we often see male athletes pose as well. admiring the beauty of the their physique. but she is a woman. is there a double standard? ♪ ♪ ♪ ♪

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shannon: new controversy over a "new york times" article that takes issue with one decorated olympian. lolo jones is a current american record holder. two days before one of her

olympic races one writer decided to take . he said she has received more publicity than any other american track and field athlete in the olympic games. essentially jones decided she'll be whatever anybody want her to be. to draw attention to herself and the many products she endorses. just days after it was published jones would place fourth in her race. she is describing the heartbreak she felt by being taken down by a newspaper from the country that's supposed to be cheering her on. >> instead they ripped me to shreds. i thought that was crazy. i work six days a week every day for four years for a 12-second race. the fact that theyer to me apart which is heartbreaking.

i'm not like -- they didn't even do the research. i'm the american record holder. i don't think i should be ripped apart by media. shannon: joining us to talk about it, dr. keith ablow. thank you for joining us today. she is dealing with a loss and dealing with a biting piece in the "new york times" as well. why do you think folks like to go after people like lolo jones. she is a conservative, she is a christian. she talked about her virginity with tim tebow. >> this "new york times" writer decided to go long and trying to turn this woman into a man. acknowledge people have multiple gift. people can be a talented runner

and also be a beautiful woman. to think you have to squash the femininity and not allow her to express herself in other ways. male athletes -- you will see them in their speedo bathing suits. one reason people le are watching them is because they cut an impressive figure. this writer has an issue with this woman's femininity. shannon: he makes an issue that she has posed not fully dressed. admiring the beauty of their physique and muscles. but she is a woman. is there a double standard? >> there is absolutely a double standard. you won't hear him objecting to michael phelps having multiple sponsors or tom brady who looks like he walked off the pages of

gq magazine into the role of playing quarterback for the new england patriots. because this is a writer who would shroud women and cover them head to foot like some other societies would. the reasons for that are best worktd out with his psychiatrist because if you go back historically you would find even that famous sculpture, the discus thrower. the discus thrower is the figure of a naked male. why? because it was acknowledged in olden days that the figure of the athlete was a stunning thing to see. the musculature. why does she need to be covered up? because this writer has an issue, not because she does. shannon: you mentioned michael phelps and tom brady. tom brady has super bowl wins. michael phelps has made history with all of his gold medals. is it different to compare them

to jones who does hold some record or titles didn't deliver on her olympic promise in this race. is it fairer to this writer to say she doesn't live up to the hype. >> to think you only earn your femininity if you win a string of medals would be sheer folly. this writer took no exception to female boxing which i think is more unfortunate, you would have sort of indistinguishable from men and women in the ring knocking each other to the ground. we celebrate that. and he has no issue with that presumably. but when a woman wants to be feminine and be female and show she has a desirable physique as well as incredible gifts, by the way, take something away from her, she came in 4th by a fraction of a second.

so she is one of the most talented runners in the world and she happens to be beautiful. can't we abide those things at once? do we have to attract the ire of those who would take her gender away, would render her neutral, to have no sea peel based on her femininity. why? that's unfair and it's his issue, not hers. shannon: what do you make of the timing of this. it was two days before her olympic race. she said she was feeling the heat and feeling attacked from back home. >> very shocked when people project psychologically their own issues in the pieces they write. this man wanted attention. he took attention from her, she was using her femininity to get some, good for her. he took his issue with her gender and he tried to take the attention away from her and get some readers. he got some readers now we can all see, this is a guy that has some issues with women when they

show themselves to be quite feminine. get to the couch, buddy. shannon: the public editor's at the "journal" said the piece struck me as quite harsh and left me wondering why the tone was so strong. dr. keith ablow, thank you so much for your time. new backlash over team usa. why this t-shirt worn by the women's soccer team that wouldn't gold is creating controversy. a young man opened a hot dog cart to help his family but was shut down before he could sell a single frank. plan helps defend against these digestive issues with three strains of good bacteria. approved! [ female announcer ] live the regular life. phillips'.

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shannon: an update on a young

man who opened a hot dog cart to help his family. nathan was shut down in just 10 minutes over a law that prevents food trucks from operating near restaurants. he was trying to raise some cash for his family after his father who suffers from ms lost his job because of budget costs. now he's staying in a homeless shelter after his family fell into financial ruin. though he says the move was painful web's not letting it get him down. >> it doesn't change my personality. shannon: he plans a fundraiser to get his cart up and running while his father looks for full-time work. san francisco's goal getting pets adopted and people back on their feet. claudia cowan is live in san francisco. >> reporter: this program aims

to help two struggling groups by pairing them up. if you groups call it puppy roulette and they want it to stop. the city will pay beggars who qualify $75 a week to give up their sign and fort a problematic pooch it in can be adopted. animal right groups call the idea outrageous. >> these puppies are emotionally disturbed or have had bad experiences. pawning them onion to somebody already trying to make adjustments in a difficult life of their own is not a sensible thing to do. >> it's amazing that an organization that says they want compassion for animals has so little compassion for people. >> reporter: he says it may save dogs that might otherwise be euthanized.

matt lives in supportive house and earns high marks from his landlords. >> he has done a lot for my self-esteem and self-confidence. >> you need to look after them properly and not sloppily. and this is slop. >> reporter: the pilot began this week. no tax dollars involved. this effort is being privately funded by a local dog lover. shannon: t-shirts given to the u.s. women's soccer team. we'll tell you why that caused such a stir. n help lower cholesterol? and it tastes good? sure does! wow. it's the honey, it makes it taste so... well, would you look at the time... what's the rush? be happy. be healthy.

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take control of your retirement today. ♪ ♪ : >> new backlash over t-shirts worn by the united states soccer teams, wearing the shirts they were handed after the win over japan yesterday. you can see the slogan r