>> gretchen: tomorrow, dr. mark siegle, bob massi, michelle malkin and it's national sub day. have a great one. martha: thank you, guys. great show. well it was due two months ago but the president has now sent his budget to congress today. reports that it will include $600 billion in tax increases in this budget. also some entitlement cuts is getting a lot of attention but will it put a dent in that, those entitlement cuts. nearly $17 trillion in debt on this lovely morning. welcome to america's newsroom. i'm martha maccallum. gregg: better late than never on the budget i suppose. i'm gregg jarrett in for bill hemmer. congresswoman marsha blackburn was there to receive it. >> received in the spirit of hopefulness that they will work with us to see if we

can bring this into balance for the american people. martha: be able to read -- wendell goler. hey, wendell, live from the white house this morning. what do we know what is in that? >> reporter: we know the budget called for $3.75 billion in spending. aims to save 3 trillion over the next 10 years. 600 ball billion in tax increases and half that in cuts. lawmakers staffs deal with the budget on the computers and rest of the country will be able to access the budget on the office of management and budget website about 11:15. south dakota senator john thune already knows he doesn't like it. >> it will be a budge fet filled with higher taxes to fuel more spending and the question we ought to be asking when we look at the president's budget, what will it do to create jobs? what will it do to stimulate economic growth? and what will it do to

increase take-home pay for middle class americans? >> reporter: senator thune said the budget would grow the government at the expense of growing the economy. martha? martha: the president put his plan out there. he also got criticism on the other side as well, wendell. >> reporter: from progressives in fact. aides say the president's plan is intended to be a compromise. only asks for the half the tax revenue by the democratic controlled budget by the senate approved. it increases annual increases for social security and medicare by $110 billion over the next 10 years which progressives protested. the jay carney says the republican alternative would be worse. >> you don't have to voucherize medicare and shift thousands of costs annually to vulnerable seniors to reduce the deficit. you don't need $5.7 trillion in tax cuts to the wealthiest of americans and pay for it by all these cuts to programs that help the middle class. >> reporter: the president

will defend his budget in a speech from the rose garden in a little more than two hours from now. martha? martha: we'll see that, wendell. thanks very much. gregg: the kentucky republican rand paul says what is really needed right now is reaganesque type of recovery. on greta last night he offered details of a plan. >> what i would do i would shift money from washington to the private sector in an enormous way. i would have a 17% flat income tax for corporations and for business. everybody pays the same. there would be very few deductions but there would be enormous amount of money infused into the private economy and when reagan cut taxes we had 8 million jobs created. the way our economy is now, i think you would have 11, 12 million jobs created. martha: we'll get reaction to the senator's budget from one of his republican colleagues, senator ron johnson. he sits on the budget committee and will be on the "america's newsroom" this morning. gregg: the republican side

of the committee has already done analysis. we'll ask him about that. in the meantime did you notice wall street? it was a record-setting day for wall street. the dow finishing up by nearly 60 points yesterday, closing at an all-time high of 14,673. so far for the year the dow is up nearly 12%. stuart varney anchor of "varney & company" on the fox business network and he joins us live. stu, help me understand this. for tens of millions of americans who are unemployed and for a long time, the job participation rate at the lowest level since the jimmy carter years in 1979 yet look at wall street. what's the deal? >> forget the job market. forget the stagnant economy. concentrate on money being printed big-time all around the world. we're talking trillions of new yen. trillions of new dollars. first of all, just look at japan. there is a new buy there running the printing presses

cranking them up like never before the yen is going down in value. japanese investors pouring money into dollar stocks on wall street. pushing wall street up because of money printing over there. ben bernanke is doing exactly the same thing here. he makes bonds and bank cds look very unattractive. money comes out of there and goes into cheap and rising wall street stocks. the result is, we closed yesterday at 14,63. we will open higher again today at another record. we may crack 14,700 in the very early going today. that is what is going to happen. gregg: i lost track, what are we at qe 28 right now? what happens when the government and inevitably it must, stops printing money, stu. >> that is the very big question. now ben bernanke says, not going to quit printing until that unemployment rate gets down to the 6% level. well we're nowhere near that at the moment. and in japan they're not going to quick printing until the inflation rate

gets to 2%. they're nowhere near that. this stopping of the printing presses is not even close but i talked to a few experts who say even when they hint that they're going to not print so much money, that is when the dow jones industrial average and other averages around the world go down 10% or more. gregg: well you might get down to 6% unemployment if three million people just five up in addition to the half a -- gave up. >> that is not what ben bernanke wants. he wants economic growth to get the unemployment rate down, not people just dropping out and giving up. that is not what he wants. gregg: stuart varney, thanks very much. martha: this new warning this morning that time may be running out before a major cyberattack. top u.s. lawmakers now say that the russians, iranians and others may actually already be on your computer so to speak. elizabeth prann joins me live from washington.

we heard a lot from the top levels of the military about this concern, elizabeth. what are we hearing today? >> reporter: that's right. lawmakers today taking another shot at the cyber intelligence sharing protection act. it was introduced last year. it passed in the house but didn't go much further when it died in the senate. the original language of the bill worked to improve communications between cyberthreats between the public and cyber sector aiming to protect americans from hackers stealing personal records, whether credit card information, social security numbers or even medical records. today one of the amendments introduced will insure shared information is only used to fight cyberthreats and not for marketing purposes. another proposal narrows the scope of shared information. house intelligence committee chairman mike rogers says it combats a much larger threat than just domestic theft. countries such as iran are making nonraggal decisions about what they're doing when it comes to cyber capability all of which the u.s. needs to be concerned

with? >> we have a whole host of things. so you have criminal organizations trying to get into your personal computer and steal your personal stuff. and by the way the chinese are probably on your computer, the russians are probably on your personal computer. the iranians are already there. and so they're trying to steal things that they think are valuable or use your computer to help them steal from someone else. that's a real problem. >> reporter: privacy advocates argue this allows company to share your personal information with intelligence or law enforcement agencies without your knowledge or permission for that matter. we'll see what happens at the house. i do want to mention, martha, the senate has not introduce ad cybersecurity bill so far this year. back to you. gregg:. martha: elizabeth, thank you very much. gregg: this sunday be sure to tune in fox news reporting, your secret's out. a special look at cybersecurity concerns. it is hosted by john roberts and it airs this sunday night at 9:00 p.m. eastern time. check it out. martha: important story there.

all right, we're getting started this morning and another state is debating the idea of doing away with state income taxes. want to know where it is, right? where this is happening and will it be a as good for your wallet as it is for some businesses? we'll find out. gregg: plus new threats from north korea. why its neighbor to the south says a missile test could happen any day now. martha: and new details, what a story this was yesterday. the twisted fantasies that we're now learning about this morning in this man who is accused of running around with a box cutter and stabbing his college classmates. an update from one of those who was hurt in this whole issue yesterday, this incident. first-hand you will hear from them. >> i but then i heard people screaming behind me. i heard people behind me i was like, no, i have to run into a room and get to safety. are everywhere these days.

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martha: extremely high winds sledding a mobile home as severe weather in nebraska. the storm blew through very quickly and caused a lot of damage. dozens of wooden power were snapped. meanwhile blizzard conditions in parts of colorado. it is april. in denver, six inches of snow overnight. temperatures plunged 50 degrees in the course of 20 four hours over the course of this storm. the weather grounded 500 flights at denver international airport. today we're told that business is starting to get back to normal. gregg: creating jobs and helping put more money in your wallet. the state of louisiana wants to scrap its state income taxes. that plan includes an increase in the state sales tax uping it by 56%, a hike on cigarette taxes and eliminating some loopholes to make up for the short fall. steve moore is a senior writer e

wall street journal." steve, good to see you. >> hi, gregg. gregg: i wonder if it makes economic sense because income taxes many economists say income taxes is dwect penalty on savings and labor which is a tax on wealth while sales tax is a tax on consumption the result of wealth creation. >> that's right, gregg. you have nine states that don't have a state income tax. sorry those are not states like where you live. states like tennessee and texas and florida and wyoming. the states that are really booming generally in this country have no income tax. they have taken advantage of the tax that their taxes on business income and labor income are virtually zero to attract a lot of jobs, a lot of new capital and a lot of new workers. so that is where the real boom is going on. the real story here bobby

jindal is trying to take on the special interests in louisiana, trying to make the case that louisiana could be a really high-flying state if they could get rid of their income tax. by the way, gregg, i talked to bobby jindal about this a week or two ago. steve, he said, we passed ethics reform in louisiana a few weeks ago. if we can do that we can get rid of the income tax. gregg: yeah the proof of the pudding is in the tasting i suppose. if you look at states, i believe we put it up on the screen with low or no income taxes, there is the map, they have done better economically. you probably read art laffer's study, his group, 62% of three million net new jobs created in the nine states without an income tax up on the map. even though they account for only 20% of the population. >> a lot of people, i worked with art laffer on a lot of these studies and a lot of people respond, well, you know, those states in the south, they have better weather and people are naturally migrating to those place. there is some truth to that,

greg. my favorite example, look at the difference between california which today has the highest income tax rate in the country. they voted for a 13.3% income tax. versus texas has a state with no income tax, over the last five years, gregg, texas create ad million new jobs. california has lost a million jobs. i don't think people are moving from california to texas because of better weather. i think it is because of the business climate is so much better in texas. the fact you can save a lot of money. you can buy virtually a house in texas just on money you save on income taxes moving from california. gregg: one of the ways to make up for the short fall, and in louisiana it would be $3 billion, why not tap into oil and natural gas leases, extraction taxes? they did that in texas. they could do it in oklahoma. they could do it in oklahoma. they do do it in louisiana. i believe they have done it up north. >> no question about it. do you know the last state, gregg, that became a no

income tax state? gregg: i don't. >> alaska. alaska of course is a oil-producing state. they raise a lot of money from their public services through oil taxes. and you're right, with this oil boom that is going on, states like north dakota, states states like oklahoma and by the way, louisiana is a big oil-producing state, they could tax the extraction of those resources and lower their income tax. that is a great strategy because you're not taxing businesses and work. you're taxing resources in the ground. gregg: steve moore, always good to talk to you. thanks very much. >> thank you, greg . martha: another big issue in washington whether or not we might get a deal. looks like we could on immigration reform but will it include real border security as part of that deal? >> you can make the fences far and wide as you want and i'm in favor of locking down that border but you've got to fix legal immigration. you also have to implement i think e-verify so you dry up jobs people can get when

they're here illegally. martha: congressman jason chaffetz you just heard was just at the border. he spent time with border officials talking to them. he says he knows what still needs to be done and he is going to tell us. gregg: plus watch this car before a harrowing and deadly crash. what police are saying went horribly wrong.

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gregg: welcome back. former pro football play requires speaking out after a preliminary hearing about a lawsuit about brain injuries in the in fl. more than 4,000 ex-players are suing the league accusing the nfl of mishandling brain injuries allegedly suffered on the field. >> nameless, faceless guys that are suffering that you never heard of and may never ever hear of, we're hear

here for them. and people who lot of their lives and guys playing now who are not really aware of the long-term ramifications of all the repeated head blows. so here we are. gregg: a federal judge will now decide whether the players case goes forward. martha: bipartisan group of senators is expected to unveil a new immigration reform bill. it could come in as early as tomorrow. one of the key issues there of course is how to really secure the borders as part of this deal. my next guest just spent three days in southern arizona visiting the border patrol location, seeing it all up close in terms of the security procedures there. you talk to congressman jason chaffetz, a republican in key committees including government, judiciary and government oversight and reform. thanks for being with us. >> good morning. martha: you saw this up close. we understand there is some sort of a agreement that is coming down on the senate side.

what do you think will be in it and will it solve the problems you see there. >> everybody wants a solution. this is going on far too long. i have great respect for the senators involved in it and but it doesn't mean we'll swallow it in its totality. it means an open process. i'm optimistic. if they're talking about certain types much amnesty and don't deal with the true problems at the border, no, it is not something i will be able to support. martha: what a path to citizenship? what about something that encourages people to learn english and gives people rights who have been here for a long time and allows them to find that way to citizenship? >> well, you know, i think i find a higher moral obligation to those people who didn't break the law, who didn't break into this country. i feel a higher moral obligation to those people who weren't willing do that. they are in line. we have literally people by the millions who want to come here legally and law fully. that ought to be our priority. martha: what about securing

border in terms of that element and what kind of reassurance you would want that is part of this deal and it is the initial part of this deal? >> well there's two aspects to this, martha. first of all of the roughly 40% of the people that are here illegally came here legally. we don't have an entry-exit program that, would in this country. i go to my local deli, and at this tell me last time i bought a turkey sandwich for goodness sake but people securing the border can't tell you who left and entered the country. won't even try to do that. that seems like one of the basic things that would be implemented with software from officemax probably about 20 years ago. we have to take care of that part. when you go down on the border, it is so porous. you go a few miles outside of nogales. there is no fence. it is basically a chalk line. we expect all the thousands of men and women to go capture them and send them back. i went to a detention facility where there were 1500 people detained. 900 were otms, other than

mexicans. let's not pretend this is problem of mexico. this is an international problem. martha: i want to get to the other problem about this. it is too expensive to secure the border. jim demint talked about it yesterday. we heard that from the democrats. it will simply cost too much to secure the border. what say you on that? >> if you don't fix legal immigration then you will never ever solve the problem. you can make the fences far and wide as you want. i'm in favor of locking down that border but you have to fix legal immigration. you also have to implement, i think e-verify so you dry up the jobs that people can get when they're here illegally. martha: all right. i want to get to this other topic with you, and something that is near and dear to your heart. that the issue of waistful spending. we saw a gao report that shows shocking things in some ways. we heard this tune before. we've seen very little done about it. let's pull up some issues that are in here that breaks it down. there are 76 programs out

there that treat drug abuse across 15 different agencies. there are 47 programs in job training. three different agencies that control inspecting catfish. we heard the president talk about this in the state of the union a year or so ago, there were three different salmon agencies out there. yet, i don't know whatever happened with that. >> well, this is the problem. the general accountability office, the gao, has issued this report. this is the third year in a row we've done this. very few of the recommendations have ever been implemented. the president promised the american people, he promised congress he would go line by line through the budget and start eliminating things. martha: why is this so hard, congressman? most people say gee, that is easy. take it down to one agency. maybe four agencies that handle drug issues. why is this so hard? >> it requires management from the top. it requires commitment from the white house. i just don't see that. what i see is the white house wanting to

ever-expanding government. they want more and bigger government instead after more efficient government. what is the shame is, then you have less money for roads and bridges and teachers and all the things they want to make an investment in. get rid of the waste, fraud and abuse we will have money to be able to do that. right now, hey, money for everybody. everybody's responsible, therefore nobody is held accountable. when is the last time you heard somebody was fired because of the mismanagement of funds? it just doesn't happen in this administration. martha: well, not in the government, that's for sure. thank you so much, congressman. >> thanks, martha. martha: we'll see you soon. >> thank you. gregg: half a dozen elected sheriffs in one state mounting a legal challenge now to the state's sweeping new gun restrictions saying it violates the second amendment. we'll be talking to one of those sheriffs next. why he says the new law goesd ts watching for a possible missile launch from north korea. now a top american commander explains how our military would be ready to respond.

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the state prohibits the sale of magazines that hold more than 15 bullets as well as requiring background checks for all private gun sales. larimer county sheriff, justin smith joins me by telephone. welcome, >> good morning, martha. martha: you look at the polls on this, and a lot of people are in favor of the kind of legislation that passed in the state level in colorado. they think there is no reason for these higher capacity magazines and why not try to have the most stringent background checks that you can? >> well i think some of those polls have been very deceiving in all honesty the way they were worded. people didn't know what these laws actually did. more current things are really showing as people discover what is in these laws they're really taking a turn around the corner and realizing this is bad legislation. martha: in what way? give me an example. >> well i can give you an example in colorado, we had serious wildfires last summer, a lot of my residents, i lost 300 homes. residents had to flee. under the new law signed by governor hickenlooper, if

they take firearms with them and leave them at a friend's house they have committed a misdemeanor offense. they and their friends should both be arrested under the new state law. pieces like that don't make sense to normal americans. martha: i think what everybody wants to do, and i think this is what is getting lost in some of this discussion, is to prevent something like what happened at newtown from happening again. virginia tech, even in your home state of columbine. reading about columbine this morning, they used, those two young men, capacity of 10 ammo in those magazines which would be admissible under your state law, right? and also handguns were used in both situations, at virginia tech and also columbine. >> absolutely, martha, that is part of the problem. these bills don't address what the bill sponsors kept touting. they talked about 100 round capacity magazines t doesn't do anything for those that are out there. the reality it is not the magazine capacity. it is the heart of man.

we have criminals out there. we need criminal control and cry control. we don't need gun control. it hasn't worked in other areas and really just falls on law-abiding citizens, that keeps them from protecting themselves. martha: we all live in fear of waking up another morning and starting to see the kind of headlines we saw that morning out of newtown that were just unbelievable, unfathomable. so how do you, you don't ever want families, parents to go through the excruciating pain we've seen the families going through. people look at what you guys are doing, why would they want to do that? if these measures do anything at all to save one life. why stand in the way of that. what would you tell them? >> there are a couple important piece, martha. one, sheriffs across the board agree these simply won't do anything to change that. these are feel-good legislation. it will not change the issue. martha: what would you recommend? what should we be doing? >> the things we're looking at one of them, sheriffs want to take guns out of the hands of felons, of

dangerous people. our state refuses to create a database for sheriff's and police officers to know who is prohibited from having a gun. we run across them on a daily basis is. we have no way to deal with that. we want to deal with criminals than law-abiding citizens through onerous legislation. martha: you think about james holmes and psychiatrist and the notes and what we're learning from the psychiatrist who believed he was homicidal before this happened and tried to bring it at least to some people's attention. what can be done about that? not one bill i know of addresses that specifically. >> you're right, martha. there are reform measures and some i believe are in the works. i haven't had a lot of contact from legislators on them but attempting to make sure when mental health professionals believe there's a dininger, that they have the avenue to contact law enforcement and they actually would be required to do that. and then to make sure that law enforcement officials take that seriously and protect the public, protect the community. they do the vast majority of

the time but we need to make that even better. martha: there has to be some kind of surveillance of people they think are a potential problem. some kind of a home visit like you get in so many parental situations in families around this country to try to keep tabs on these people to see if there is any way to stop them before they pull something like this off. sheriff, thank you. interesting. we'll watch the lawsuit against the legislation in your state. see how that goes for you all. thanks for being here. >> you bet. thank you, martha. gregg: how about this story? teenage girls saving their dad's life. a portland, oregon, man said his 3,000 pound tractor suddenly flipped trapping him underneath and preventing him from breathing. that is what his daughters jumped in. >> i had my hands on this side and she had hers. >> we braced ourselves up against the bottom of the tire and lifted it up. gregg: can you do that? wow! the girls managed to lift that tractor just enough to allow their dad to breathe. and he said his daughters

saved his life. i don't know how they --. martha: great story, right. gregg: very strong girls. superhuman strength in a time of need. martha: adrenaline kicks in and they looked like pretty tough girls and their dad will be thanking them for a long time. good job, girls. good story. there are some serious questions today about a change at airports that would allow certain travelers to bypass u.s. passport controls even though their country has troubling links to terrorism. is that a problem? we'll talk about it. gregg: congress getting its very first in depth look at the president's new budget. we'll ask a member of the senate budget committee what the president is proposing on entitlements and taxes and how republicans are reacting to the fine print. >> it's quite similar frankly to his budget last year and it's two months late. we're not sure this is a serious exercise. we're still hoping that we'll get a chance to solve the biggest problems confronting the country, our

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martha: it a deadly accident when a suv crashed into a store. watch this tape. oh. miami police say that the driver, there's the car. got both angles on this he lost control. the store manager says he knows why he survived. >> god did it. give thanks to god. the almighty. he saved my life. martha: before crashing into that store the driver hit two pedestrians and sadly one of them did lose their lives. that guy was okay. gregg: well the wait is finally over. took a couple months. president obama sending his budget plan to congress today. reports say it aims to reduce america's red ink by nearly $2 trillion over the next decade.

does it really say that? can it really do that? senator ron johnson sits on the budget committee. the republican sits live on capitol hill. the pleasure to talk to you. the republican side of your committee, the budget committee, reportedly did a preliminary analysis and determined following from the budget. not 600 but 800 billion in tax increases. 7.3 trillion in new debt. an actual deficit reduction of only 280 billion. two questions, is that roughly accurate, and, second of all, if it is, is that unacceptable? >> yeah. i mean it is not a serious budget. it never provides balance. doesn't put us on a glide path to live within our means. 10-year spending compared to what the house proposes. it raises spending by $5 trillion. more an trillion dollars over the cbo baseline and house budget and increases deficit by $4 trillion over the house proposal.

gregg, what you really need to concentrate on in any of these 10 years budgets is the first year. in the first year president obama's budget spends $160 billion more than the cbo baseline, increases the deficit by $128 billion more than the cbo baseline. let's face it. really what is the president really is proposing, increasing spending and increasing the deficit that first year. then extrapolate next 10 years. that is what his proposal looks like to me. more increased spending. more increases taxes and unfortunately more increased deficits. gregg: but for the very first time the president is putting in writing here a concession on social security to reduce the growth of social security by using a different inflation measure for calculating cost of living increases, the so-called chained cpi that gives a lower measure of inflation. would republicans, in exchange for that, be willing to agree to some revenue tax increases? >> well, first of all, i

think it is helpful the president is putting chain cpi on the table. a more accurate reflection of true inflation. in terms of doing a deal raising more revenue, republicans want to raise more revenue through economic growth. gregg, a couple figures even with the meager economic growth from 2009 to 2012, revenue increased $34 billion per year if we return to a normal economy where revenue generation is 18.1%, that would add another $435 billion per year. the problem with the president's proposal, it increases taxes. it will harm economic growth. the fiscal cliff deal will raise $41 billion next year. raising people's taxes will harm economic growth and likely result in less revenue than we can get through growing our economy. gregg: what if you're only taxing high income wage earners for example? for example the president wants to make those earning more than a million dollars pay at least 30% of their income in taxes and 28% on

cap on deductions for high earners. what about that? what is wrong with that? you're only hitting that one small sector? >> but that one small sector is comprised of small to medium-sized businesses that report their business income through the individual tax return. those are the innovators. those are the job creators. those are the people that we really are relying on to grow our economy. so you harm economic growth and, i hope i proved that economic growth is going to be far more effective at really increasing revenue and reducing deficits than punishing success. unfortunately this president doesn't understand that. listen, i'm glad he is trying to take a look at social security, but even chain cpi, gregg, that will supposedly raise about $230 billion of, well actually, close the gap in social security, but over the next 20 years, social security is running a cash deficit of $5.1 trillion. what we need to do is start looking at each one of these problems individually and start solving social security, solve

medicare. we need pro-growth tax reform. we start using our energy resources in this country. so i'm not looking for a grand bargain. i'm looking addressing these problems by first and foremost, going to the american people and describing the true seriousness, the true depth of the problem. that is the first step in reaching solutions. gregg: senator, some people suspect the president isn't really serious about all of this, otherwise he wouldn't be two months late presenting his budget. already of course the white house especially over the weekend was condemning republican pubs embracing the my way or the highway approach. are you worried that the president is playing politics and all he is trying to do is society up republicans for blame with an eye towards the fourth fourth election? >> obviously releasing a budget two months late is leading from behind which is not real good idea. but i'll tell you what. i will believe the president is serious about solving these problems when he

starts stating publicly what he said privately. for example, he described the problem in medicare, that americans pay one dollar in and to get $3 out in benefits. that's a huge problem. he further went on to say, americans don't understand that. when president obama needs to do. here is the first act of bipartisan, gregg. we need to sit at table to agree on depth of the problem. go to the american people together in a bipartisan fashion to accurately describe the depth of the problem. rather than trying to talk about solutions right now. we need to convince the american public we have a real serious problem. to date the only thing i ever heard about medicare, we need modest reforms. listen, when you're paying one dollar and paying $3 out in benefits after $575 billion a year program that will require more than modest reforms. we need to be truthful and honest with the american in a bipartisan fashion. that is the first step. you have to admit you have got a problem. >> senator ron johnson, thanks so much for taking the time. >> thanks for having me on.

martha: let's get a look now on capitol hill as we wait for john boehner to bring out his reaction on the budget that the president has put forth and we're going to get that to you as soon as that gets underway. in the meantime we have some new information that is now emerging from the scene of the stabbing rampage on a college campus in texas. what a brutal, horrible scene this was, as we hear from some of the terrified witnesses. >> because it is a scary thing. you know, i got down on my hands and knees led everybody else as i said in prayer. i prayed for god to watch over us. that we're in his hands at all times. and that's it

gregg: a school bus driver, is now apologizing for lying about a phone call she took when she was behind the

wheel. the florida woman originally told the school board, well, the phone call she took was from her son in afghanistan. who was calling her for her birthday. turns out wasn't the case. the truth came out after the district asked for her phone records but instead of turning those over, she apologized and accepted a 10-day suspension. martha: saudi arabia is now on the list of countries whose travelers could get the fast track through airport security here in the united states. some critics are alarmed by that because of the country's troubling past links to terrorism, including the fact that most of the 9/11 hijackers came from saudi arabia. eric shawn joins me now. so, eric, you can see why this has some people concerned. >> reporter: martha, of course as we all know the 9/11 attacks ushered in a new era of airport security for all of us and of the 19 terrorists on those planes, 15 were from saud saw. we're now under an agreement

signed by homeland security secretary janet napolitano and the saudi government. qualified saudi nationals will be able to enjoy global entry. that is a u.s. program that permits, so-called, trusted travelers, passengers preapproved and deem ad low risk for terrorism, to skip the lines and move through customs more quickly. saudi arabia would be the only, only the sixth country that has it. the critics say the saudis do not deserve the special treatment. house homeland security chairman, congressman mike mccaul, thinks saudi passengers could pose special risks. >> it poses a serious risk i think to the interest of the united states. that is my biggest concern as chairman of homeland security is, why would we present this risk to the united states. we know that the domestic flights are not the, as much a concern anymore. it is the flights coming outside the united states, into the united states, particularly from the middle east. and particularly from the saudi peninsula. >> reporter: he points out that other countries like britain and france don't

have global entry they should get it first. he says. martha: seems crazy on the face of it. what does homeland security say about all this, eric? >> reporter: the department of homeland security declined our request for an interview but the agency pointed out to qualify for global entry, passengers need to pass a rigorous screening process and background check. they're vetted for criminal history and violations. their employment is verified. they have to go and submit to in-person interview. others say those precautions are not enough. >> saudi arabia is a known question mark in terms of sponsoring terrorism. there are still major foundations and figures in saudi arabia that call for attacks on the united states. >> reporter: hearings will be held on capitol hill next week to further investigate if the saudis should qualify for global entry. martha? martha: eric, thank you very much. gregg: doesn't seem quite right, does it? martha: it is a very complicated process. i picked up that pamphlet.

it sounds like an easy way to get through security if you travel a lot. they require a sit-down interview. you would want to start with other countries to get you there the process. who knows, if somebody is sponsoring a terrorist attack in saudi arabia, steve emerson, noted terrorism analyst, just mentioned they could be helped through the process. gregg: you could bluff your way through the process arguably. tensions high on the korean peninsula. satellite images show the north could launch a missile any second. what is being done in response? we're live in seoul, south korea, just 27 miles from north korea. martha: we've covered this story for a long time and now the american pastor who is jailed in iran's most notorious prison is in a compromise position. the urgent medical emergency that is putting his life in jeopardy now. we'll talk to his wife and the american lawyer who are trying it free him next. >> does daddy not want to hear our voice anymore?

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martha: the country of south korea is now bracing for a possible missile launch from their neighbor to the north. north korea. seoul is warning that this could come at any time. we are starting a brand-new hour now of "america's newsroom." good to have you with us, everybody. i'm martha maccallum. gregg: and i'm gregg jarrett in for bill hemmer. any test fire would violate united nations resolutions and furthest ka late tensions in the region. david piper is streaming live from seoul, south korea b30 miles from the border. what is the latest on the expected missile test by the north? >> reporter: well, the south korean government did say that it could be launched today. but we haven't had any launch so

far. there is only a few hours left of this day. suggestion by south korean officials that it could go on to the 15th, that is an auspicious day for north korea because it was the birth date of the grandfather of the current leader kim jong un. that's how it looks at the moment. it's still fairly tense here particularly in government circles, government circles and military circles. the u.s. and south korea have gone onto high military alert at this time in case they do conduct a missile test. gregg: what happens if a missile is launched and it begins heading toward a populated area? >> reporter: well, that will be the worst possible situation. we do understand that south korea and the u.s. have contingency plans to protect places like here in seoul with missiles, and we do understand that japan has now brought in patriot missiles right into the center of tokyo.

there is also a number of ships, korean, japanese and american ships that are capable of knocking out one of these missiles, they'll be tracking it straight away. it has really no chance of hitting a populated area. gregg: david piper streaming live from seoul, south korea very close to the border of the north. we'll check back with you. martha: a top u.s. commander says america is fully capable of shooting down a missile from the rogue regime. listen to this. >> do we have the capability to intercept a missile if the north koreans launch within the next several days? >> we do. >> would you recommend such action? >> if the missile was in defense of the homeland i would certainly recommend that action. and if it was defense of our allies would recommend that action. >> my question is would you recommend that we intercept a missile if it is launched by north korea no matter where the

intended target is? >> i would not recommend that. martha: very interesting, right? we have the former spokesperson for the last four u.s. ambassadors to the u.n. richard, welcome. good to have you here. what did you make of that exchange with john mccain and the commander? >> i think it's a product of the obama administration. we have had a president and his team that has misread the situation consistently from the very beginning. when kim jong un first came into power we had hillary clinton, secretary of state at the time, telling us that he could be trusted, and she put together a food aid package, offered it to him, and they announced that he was going to give up these weapons. and then suddenly they pulled it back because they misread the situation. consistently this administration has misread this problem. and i think the simple fact is the philosophical idea that us shooting down a missile from north korea is a hostile act is

ridiculous. if it's a hostile act, whether, you know, it's towards an ally, or just them shooting a missile -- having a missile test when the international community has said don't do this. i think us shooting it down is keeping everyone safer. it's not increasing the hostilities, which is what a lot of journalists, includinists said yesterday. martha: you look back at what they've been doing. they had a successful test in december, then there was an underground nuclear test that happened on february the 12th. one of the big concerns is whether or not they could launch a missile that has atomic capability. and from what i've heard we believe that they cannot. but, you know, do we know? >> well, let's also remember, martha, that in 2010 they took out a south korean submarine and

killed 46 south koreans. the liberals are going to try to tell us that there is no danger of a nuclear, you know, problem, or test, or launch. and i think that is a separate issue than the hostile acts that north korea is launching and testing, and clearly we node to take it a lot more seriously than what we are taking it. martha: you know, we are once again in a situation where a country has violated u.n. security resolutions, and that -- you know, it seems to mean absolutely nothing. what is the ramifications of violating a u.n. security resolution? we learned there were very few at least for a longtime in iraq. >> zero, there is nothing, there is nothing. you can violate every u.n. security council resolution and it doesn't matter. look, you think about the iran resolutions at the u.n. we have the obama administration that with the europeans was just

offering the iranians a dole that violates the u.n. security council resolutions by offering them into rich a little bit of uranium. i mean, come on, the u.n. security council means nothing to the international community. martha: richard grenell, always good to have you here. thanks. gregg: a little context of what life is like in north korea. take a look of this picture, the white cluster shows use and access to electricity, as you may notice it is pretty much dark in the country, just 26% of the population has access to electricity, and just 3% of roads are actually paved. there are only five telephone lines for every one hundred north korean as. martha: the u.s. has maintained a presence in that region since the end of the korean war. there are near here 30,000 u.s. troops stationed in the south, 18,000 of those troops are based about halfway between seoul and the today militarized zone in 17 different u.s. military camps.

gregg: we are learning more now about the suspect behind a suspect rampage at a texas college yesterday. police say 20-year-old dillon quick attacked people at random injuring 14 students. we are getting word today, five of them have been upgraded to good condition. listen to a survivor and another student describe the panic during the attack. >> i just -- i didn't feel the cut. i heard people screaming behind me where he was running at. so then when i heard people behind me i just -- i was like, no, i have to go running to my room and get safety. >> i just got down on my hand and knees and led everybody else in prayer. i prayed to god and we know we are in his hand at all time. and that's it. gregg: casey stegall is live in dallas, texas. the suspect talked with police last night? >> reporter: he did. it's really what he confessed to that paints an even more

disturbing picture here if that is all possible. 20-year-old dillon quick who is hearing-impaired by the way, and a student at that community college told police that he had fan ta sighed about stabbing people to death since he was in elementary school. he also told investigators that he had been planning this attack for a longtime. police say he went on the rampage yesterday just before 11:30, going building to building on the lone star community college campus near houston, slashing students primarily in the face and neck areas. witnesses describe a bloody scene before fellow students tackled dillon quick to the ground. >> as soon as i put him on the ground i asked him like, why, why, why did you stab these people? he didn't tell me anything, we knocked his hearing aid out. he couldn't hear us. i was screaming at him, i was so even raeufpblgtd inch

enraged. i didn't hit him -- i don't know why i didn't hit him. >> reporter: he has been charged with three counts of aggravated assault with a deadly weapon. it's likely more charges will follow. gregg: evidence was found at the scene, right? >> reporter: exactly, pieces of the razor that he used scattered around the scene. also a piece of the razor blade found embedded inside at least one of the victims. and then the harris county sheriff's office tells thaws the handle to this razor blade that he used was located in his backpack. eyewitnesses say it was an exacto knife or a box cutter but it's not clear where he obtained it because some of the vioed nes building. we should tell that you the suspect's parents do live in the houston area, and they have been talking with investigators. neighbors describe him as a nice guy who never showed any violent tendencies before, gregg. gregg: casey stegall live in dallas, texas, thanks.

martha: senate minority leader mitch mcconnell speaking about the president's budget proposal. here is a piece of that. >> like nearly every one of his budgets so far it's late. really late. and the extra two months he's kept the country on hold, both the house and the senate, and they actually passed their own budgets. so it's hard to see what the white house plans to accomplish here. i want to believe the intention is not to purposely blow up the budget process so the president can campaign against the very budget process he blew up, but from the reports we're seeing it's getting harder and harder not to draw that conclusion. martha: in some ways harry reid had a similar response. he says we do have a budget here in the senate, we are working on that. neither side is very happy with the president's budget proposal, which he says is sort after compromise, so you can see why that may be. we are waiting for the house

republican side, to hear from john boehner. we'll take you there when that gets underway as well. gregg: as we wait for the president to really talk about his budget plan both sides are coming out at odd over some proposed entitlement cuts, specifically social security. we are going to break down what that could mean for you. martha: plus, new details on the american pastor who is jailed in one of iran's most notorious prisons. the medical emergency we are learning may be putting his wife in danger. we will speak to his wife who has been a frequent guest here, we'll get an update on how he is doing and his lawyer is here. gregg: newly released 911 tapes in the case of christopher dorner who went on the shooting rampage before taking his own life. we have the chilling new audio. >> can you try to scream out for the deputies, please? [screaming] >> you guys were tied up? >> yeah. >> and how long ago did he

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gregg: police in california now releasing the 911 tapes from the couple ambushed in their home by fugitive e cop christopher dorner. you may recall he was accused of murdering three people in an act of revenge for his firing from the lapd, and while on the run dorner tied up jim and karen reynolds and fled in their car. the couple defied dorner's threat to kill them if they notified police and they called 911. take a listen. >> when did he tie you up? >> right before leaving he tied us up. he had pillow cases over our heeds. >> how long ago did he tie you up? >> it was like 15 minutes to 30 minutes. >> this all happened today? >> yeah. we're still tied up. >> do you guys see footprints prior to going in your house?

>> no. >> anybody else other than you and your husband that were tied up? gregg: the reynolds are now attempting to collect the $1 million reward that was covered in the search for dorner. martha: back to politics now, a growing number of republican senators are now encouraged by president obama's offer to include entitlement cuts in the budget proposal. the president is going to layout that plan in less than an hour or so. meanwhile, on the other side a number of liberal groups also are not so happy about this. including the cuts to social security is the main thing that has them fired up right now. the government is expected to spend $11 trillion on social

security over the next ten years. it will run out in about 15, 17 years or so, the whole thing, that includes $810 billion on social security just this year alone and it is expected to run out in 2033. let's talk about this. max rich man is the president of the national committees to preserve social security and medicare. and mia mcginnis is on the committee for the federal budget. do you think we node to reform entitlements to any extent? >> first of all, we have said from the outset that changes to social security and medicare should be done for the sake of these programs, and not as bargaining chips in negotiations over the federal debt and the annual deficits, which need to be addressed. and we were under the impression, i know i was, that

the president agreed with that. so the changes to sews security, first of all you mentioned the coladvance see date 2034. we don't have to solve social security in the next two weeks or two months. we need to address it separately, separately. and this is what the president has committed to. martha: i don't think that will ever happen, do you? for the entire course of my lifetime people have been saying we have to reform social security, and this suggestion is to implement the changed cpi which would slow down the cola increase. you think that's a really bad idea. tell me why. >> it has happened before, i don't know how long your lifetime is, but in 1982 and 83 there were some major reforms to social security for the sake of the program, and they were widely accepted and widely implemented. the cpi, the chain cpi that the president has mistakingly inserted into his budget, we believe, will cut benefits, will cut benefits over time.

martha: right now, right? they would cut them for sure. >> right now immediately. eye not prospective, it's immediately. you know, the thing that is important to remember is in the last four years the average benefit per year has been 1.3%, and in two of those years there was zero cola. anybody, any politician who thinks that is too generous will have a very rude awakening november of next year. martha: i hear what you're saying. let me ask you this. what was wrong with the paul ryan plan which would have put these changes only to people who were under the age of 55? anybody who is receiving benefits right now would not be touched. but for those folks who are still young enough and still making money they would have a later age that would kick in, and also if you make over a certain amount you're going to have means testing as well. do you like those ideas? >> i don't like them at all. martha: why? >> the paul ryan did not address social security. martha: those two issues in terms of age and means test stph-g what is wrong with those. they would not impact the people you're talking about right now >>

those two issues related to medicare, let's be clear about that. martha: that's clear. in terms of entitlements overall. >> let me answer that. what his plan did is he privatized the medicare program, turned it into a voucher. seniors would be given a check, a coupon in effect, and told, go out and find insurance. well, don't we remember -- doesn't congressman ryan remember the reason we have the medicare program is people that were older could not buy affordable insurance, and to go back in time, to go become to the last century, before 1965 and tell seniors, look, we'll give you a voucher, it won't keep up with the rising cost of healthcare, and you're on your own and good luck to you. martha: i was talking about the difference between having it affect people now and having it affect people who are younger now. so let me bring in mia mcginnis, president for the committee for a responsible federal budget. what do you think of the president's budget and what

we've just been discuss stph-g. >> i think focusing in particular on chained cpi the point about the changes to social security being used to lengthen the life of social security and fix this program, which is on a none sustainable path makes sense. i think it would have been better if the president's budget had a full fix to social security reform, but on chained cpi in particular it is a very sensible policy that talks about how right now, the way we calculate inflation, and it's not just for social security, it's also for taxes and other spending programs, actually over states inflation. this is a technical fix, and what it would do is very, very, very, very, gradually phase in savings that should be saved for social security. for other parts of the budget could help the budget. i think it's disappointing he doesn't go farther on how to really fix this program. while we don't have to fix it immediately the sooner we put changes in place the more gradually we can phase them in and the point you made, we've known about this problem for years and years. and it's only because politicians don't want to talk

about how to fix these programs that they've been delaying, and that's going to harm the people who depend on them the most. martha: absolutely. changes were made as he said in 82 and 83, but they didn't, you know, produce any long-term reform because here we are talking about it again. you know, in terms of -- do you think there is an opening for some sort of grand bargain agreement? because you seem to be fairly pleased, mai with at least the cpi beginnings to this. >> i think the cpi was a very good-faith effort to put on the table. what we need to do now is stop talking about kind of the pola raoeugz issues that are out there. we know they are out there and we know that all of these choices are difficult. we ned to kind of focus on the kind of policies that will be able to get some bipartisan support understanding that all of them are difficult. i think chained cpi makes sense and medicare reform is another place to look. hopefully we'll make progress. martha: thank you very much for being here. gregg: the first amendment battle goes back to court.

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wires moments ago. we are getting word that there is a bipartisan agreement of sorts on expanding background checks for gun owners. and this is coming from two senators, senator joe manchin of west virginia, and republican senator pat toomey of pennsylvania have got even together and agreed that they could create legislation that would include gun show checks, background checks and also background checks on online firearms purchases of private sales as part of this agreement between u know, friends, family members would remain exempt. lots of discussion to come on

all of this. an official announcement could come today, we'll see where this goes. that is a major development in the gun issue. gregg: back to court today for a fox news.com reporter facing jail time for refusing tow reveal her source. jana winter is her name. she wrote an article detailing how suspected aurora theater's james holmes sent his psychiatrist a notebook foreshadowing the massacre. colorado has a shield law for reporters that is supposed to protect them, and their sources. alicia ac u.n. ark is live at the courthouse in centennial, colorado. what do we expect to happen today in court? >> reporter: well, gregg, fox news reporter jana winter will be in court today. the judge in the case has ruled that she doesn't have to testify yet, however she is required to here as the detective who came into contact with that notebook you mentioned takes the stand to answer questions about whether he discussed it with

anyone. the judge and the holmes defense team both are trying to determine who leaked winter the information about the notebook. the judge ruled earlier this week that he will wait to decide whether she will be compelled to testify. it all hinges on whether that notebook is entered as evidence. >> the mere fact that miss winter has been brought here as part of this proceedings has a chilling effect on news gathering about this case, and perhaps even more broadly. >> reporter: winter was reporting on the july 20, 2012 massacre at the theatre in aurora in which 12 people were killed and 70 injured. james holmes offered to plead guilty to escape the death penalty, the district attorney reject they'd offer. jana winter could go to jail if she refuses to reveal her sources. gregg: even if the notebook is admissible i fail to see how it's relevant to the guilt or in sense of the accused, but let me move on.

has she says that she will not reveal that information? >> reporter: she says she is not going to, because it would effectively end her career as a reporter. you'll remember it was a big moment in the days after the shooting when it was revealed by her reporting that holmes had sent a notebook to his university of colorado psychiatrist dr. lynn fenton detailing killing people. recent documents showed that she had warned police about holmes after he told her he was homicide tkal. gregg. gregg: thank you very much. martha: the healthcare law for many has turned out to be just a big dose of confusion in many ways. what the health and human services secretary is now admitting along those lines. gregg: and back in the u.s. after kidnapping their own son, the latest on the couple that sparked an international search after taking their two boys to cuba. martha: and there are new fears today for the american pastor

who has been jailed in iran for months. details of a medical emergency that could be putting his life in danger. his wife speaks to us next. >> a day does not go by that the kids do not miss their daddy, especially at nights when he would tuck them into bed. our family is definitely suffering during this time. i'm hoping the kid don't know about the eight-year sentence that he has received and what that means. i'm hoping i won't have to ever tell them, and that we can work together and bring said home for our family. nexium, the purple pill,

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gregg: speaker of the outside bone bon reacting to the president's budget. >> the american people know you can't continue to spend money that you don't v. the federal government has spent more than what it has brought in in 55 of the last 60 years. now think about this. you can't continue to go on like this. that's why we came forward with a plan that will balance the budget over the next ten years. we believe strongly that it is time for washington to deal with its spending problem. gregg: we've heard from mitch mcconnell, john boehner. we'll hear from the president in about a half an hour from now live in the rose guard ben his new -- garden about his new submitted budget. martha: an incredible story. a couple accused of kidnapping their two young boys who they

had lost custody of and fleeing by boat to cuba. that couple is now in jail. you can see some of the video of what happened earlier today. the boys are back with their grandparents. they have legal custody of the children. listen to their grandfather before they returned home. >> right now we are just looking forward to getting them in our arms and hugging them and being with them and getting them home where they'll be safe again. martha: steve harrigan is live in miami. steve when a har oink experience for -- harrowing experience for pretty much everybody involved in this. where is everybody now? >> reporter: that plane from cuba arrived in florida about 1:30am. all four family members were on board but the two parents were handcuffed, kept separate from the four-year-old son and the 2-year-old son. they are now in jail in florida facing a series of charges, the most serious one is kidnapping. this week-long effort to recover the family was really a joint operation between the f.b.i., the coast guard as well as the local sheriff's office.

>> it's unusual for people to flee to other countries, it's a little unusual the way this happened, of course with cuba's close proximity, you know, it can happen. i will say too we did -- the family dog is also -- we had the family dog in custody and he's being returned with the children, so he will be with the kid tonight. >> reporter: the couple lost custody of their two sons last summer after a bizarre incident when police found the familiar line side a hotel with drugs and guns and they were talking about impending armageddon. martha: it sound like cuba was pretty kaoeufpt. >> reporter: state department officials are praising the role of the cuban government in this incident saying they were extremely cooperative. the 27-foot boat docked west of havana, it was a have sign for cooperation when cuban agents surrounded the boat instead of removing the family and putting

them up in a hotel. as you know cuba does not have an extradition treaty with the u.s. there are at least 70 fugitives still on cuba soil, but this one ended happily for the family. martha: good thing for those boys. steve, thank you very much. gregg: new concerns today for the safety of an american pastor jailed in one of iran's most brutal prisons. we are now learning that saeed abedini is apparently being denied medical treatment. he is suffering from internal beating after months of beatings by iranian guards. joining is now is naghmeh abedini, and jordan sec ooh louisiana joins us with the american center for law and justice. tell us about your husband's condition? >> we know he has internal bleeding that is pretty critical. we know there have been doctors who have visited him at the hospital that have said he needs to be treated immediately. that was at least three weeks

ago, two or three weeks ago. he was taken to a private hospital, but he was not treated, and he was taken back to prison, and we are very much worried about his health and his internal bleeding. he's in a lot of pain. >> jordan, secretary of state john kerry said a month ago, he called for the release of the pastor a month ago. what have they done since? >> well, you know, it's interesting, gregg, we do know the state department, we have a much better working relationship since the congressional hearing way was covered on fox news and the clip was played earlier in the broadcast today. since then when the state department didn't show up and they faced congressional criticism they've been much more for the coming in their work with us at least private leave. can they do more? of course they can do more. it's a difficult situation, but they have taken the steps that we've asked at least, it took months to get there, and we've engaged a lot of people around the world, the european union and others. this incident with the hospital, saeed was promised medical care after he got his first exam.

he's been in prison now 196 days. and so he knows he's gotten terrible bleeding, he knows he's got a serious medical condition. he was completely healthy when he was imprisoned. so it's all because of the beatings like you said and yet think about the brutality or the ineptness of this regime. either they are that inept or that abusive that they would say okay finally today is your day, you're actually going to go to the hospital. they take you there and instead of keeping you for a few hours or waiting for the next day they send you right back. gregg: it's psychological abuse on top of physical abuse. ace understand it you just got a letter, let me read part of it. deny your faith in jesus christ, return to islam or else you will not be released from prison. we will make sure you are kept there even after your eight-year sentence is finished. these are the threats that prison officials throw at me, that's the letter from your husband. naghmeh are you frustrate they'd not enough is being done here to help him? >> yes.

you know, and i get glimpses of what is being done to him. he's able to -- his family isable to visit him and he's able to say and get some words out, and that he's -- you know, last i heard he was getting discouraged that what they are saying might be true that he might be kept there even more than eight years, and that's what they are doing psychological torture on him and playing games on him, that he's, you know, he's going to be there for a longtime, he's never going to see me or the kids, and we need to continue fighting for him and to let him know and let the iranian government know he's not forgotten. gregg: jordan we've only got 30 second left. you launched a letter campaign on monday. >> that's right. gregg: tell bus it. >> we've talked to people who have gotten out of evan prison in iran. they all said letters, they may not even get them in their hands, if they get a lot of them the guards will tell them and start asking them questions about it which let's saeed know, let's the prisoner know people care about them. we launched it on monday, it's

an online tool, save saeed.org. we've had 20,000 people write their own letters, custom letters. we will handle all the packaging and get them to the prison so they are overloaded and inundate wed the letters. >> our thoughts and prayers are with you, thank you. >> thanks, gregg. >> thank you. martha: maybe you heard about this. a big star-studded concert last night at the white house. ♪ singing] >> sitting in the morning sun, i'll be sitting when the evening comes. martha: a pretty good version of that, justin timberlake at the white house last night all this is raising eyebrows because of the budget cuts. was it a good idea to go on with this big night of partying at the white house? we've got a fair & balanced debate coming up. gregg: he's come a long way since being a mouseketeer. the huskies crushing the

louisville cardinals in a record-breaking 93-60 win. ouch. martha: congratulations. gregg: you go girls. ♪

[ man ] excuse me miss. [ gasps ] this fiber one 90 calorie brownie has all the deliciousness you desire. the brownie of your dreams is now deliciously real. martha: this is getting chatter around the water cool they are morning. the president spent the evening celebrating the sounds of memphis soul during a celebrity-studded concert at the white house last night. these kinds of events it needs to be noted have been going on at the white house since 1978. they are mostly privately funded. they do add expenses like security, and that kind of thing is on the taxpayer time, so part of it is paid for by all the rest of us who didn't get to go to the big party last night. joined now by alan colmes the host of the alan colmes radio show and a fox news contributor and didi bankey, a special assistant in george w. bush's white house. so, didi i would imagine you saw

similar events like this at the white house when you were there, right? >> that's true, however, martha i think president bush would have canceled white house tours. we are at spring break and have you these kids that they probably have one chance to go to washington d.c., and one of the most important things they want to do is see the white house. and the tours go right through the east room where this event was. i would suggest that the obamas have a concert with justin timberlake and queen latifah so they can have the money to do the white house tours. that would be a good idea. martha: let's take a look at the moment when the president walked up to the podium last night to give everyone a feeling for the event. ♪ [music playing] >> i just want everybody to know that it is now my second term so rather than hail to the chief we are going with that. [laughter] martha: they are going with that.

>> from here on out. martha: that one got a big laugh. alan what do you make of all this? >> first of all, it's been pretty much acknowledged that the white house tour situation was because secret service made a decision about security and had to redeploy personnel. if you're going to attack the president for og something like this. or playing golf that has nothing to do with policy, and you're a republican looking to get back in the game because the republican party has been diminished, i don't think it's a good note on which to hit the president. to attack him about stuff like this especially if it's privately funded. that's like saying if you're unemployed don't have money coming in you shouldn't go to a koerpbts, shouldn't do anything with your free time to have fun. i think it's a silly argument to make from those who don't like the president. martha: silly argument, dee dee. >> i don't think its silly. you have the elite, hollywood, fun, cool, swanky swa, and then

you have kid that can't get in the white house. that is the people's house. and i talked about the tours because right now during spring break it's a big deal. the administration was talking about how the sequester is going to be doomsday, terrible, people are losing their jobs and there he is sending the message that he's partying down in the east room. it's not a good message. martha: i guess that's at the heart of it. there are choices that are being made, we know that the president was given the option to have discretion in how those choices were made. you've got the blue angels who are grounded. you've got furniture low, you've got the assistant chef at the white house who is not working right now. i guess they weren't able to work this event last night. it's a question of appearances. you think back to president bush deciding not to play golf during the war. it's a sign reef specht, it's an acknowledgment that there are stuff times going on, it's that kind of tone i think that is something that has a lot of people just saying, you know, when you talk about how it looks, that is what they are talking about, how it looks. >> i wouldn't begrudge president bush for playing golf or anything like that. i just think to go after the

president on stuff like this. martha: that is the choice he made. that is the point. you've got two different people in the presidency who make different choices about the way they should u know, come off i guess for lack of a better word. >> again, i think it's not worth arguing about. martha: but it is because it comes across so owe hraoetist and swanky. average persons are struggling. they don't want to see this. it's not right. >> if you think the president would lose an election because of this or this will make his ratings go down when congress has like a 16% rating and the republican party is losing -- >> we are not talking about congress. >> if i could finish, and the republican party seems to be losing on several issues. the republican party has so much damage to do in its own court. martha: they would spend their time better elsewhere. thanks so much you guys for weighing n. dee dee, alan. >> party down. gregg: jenna lee is coming up right now to tell us what is happening on "happening now." jenna: minutes away from a rose

garden address by the president on the new budget proposal he's put forward. karl rove is here, he'll react to that. plus a special assistant to ronald tkpwaeug and says north korea is someone else's problem not ours. he is here with ambassador bolton who disagrees with that. the new technology allows some professor toz see how much of their reading their students are actually doing. that is a good thing or too much big brother? plus the jodi arias trial making headlines again, the grueling cross-examination that continues to shock court watchers. all ahead at the too much the hour. gregg: jenna thanks very much. the healthcare law is turning out to be a lot more confusing and difficult than the obama administration thought. how can that be? what the health and human services secretary is saying now about the extended rollout. what it may mean for u.

martha: look at this dramatic rescue of a little girl who got stuck at the bottom of a 55-foot well. she is four years old. she fell in there while she was playing near a construction site. oh, my gosh, how adorable is she. thank goodness she is okay. it was such a small hole they couldn't get equipment into it, they had to pump oxygen into the wall with a hose and pull her out boy a row. it took a half hour to get her out, not too long that she was down there. she'll never forget it, neither will her parents. gregg: the obama administration says it is taking a lot longer to implement the healthcare law than previousliess mayed. speak being at harvard university health and human services secretary kathleen sebelius admitted there's been a lot of confusion associated with the rollout. >> there was some hope that once the supreme court ruled in july, and then once an election

occurred there would be a sense of, this is the law of the land, let's get on board, let's make this work, and yet we find ourselves still having sort of state-by-state political battl battles. gregg: jenna goldberg editor at large of "the national review.," fox news contributor. she underestimated its complexity. the law is over 2700 pages long with 15,000 pages of regs. what does she expect? >> the regulations are tall irmean the stack of them. this is a particularly dishonest argument that we are getting from sebelius. basically what she is saying is any problems they are running into with obama care has to do with republican governors not a growing to the medicaid expansion. the medicaid expansion is significant but only a tiny part of it. you know, the -- they have not met a single deadline of any major deadline under obama care yet. they've had to kick it back every one.

every single promise about obama care and what it will do as been business lead stphaog united healthcare says it may go up for some 115 per. that puts alloy to the president's promise >> said a bunch of things. you can keep your insurance plan if you want to. that is completely not true. lots of companies are dropping people's insurance plans. said your premiums won't go up, that wasn't true. a lot of people's premiums are going up. it will reduce the deficit and the cost curve, that wasn't true. wouldn't add a dime to the deficit. it will add trillions of dimes to the deficit. there are huge differences. in a lot of ways you can see this is the domestic policy equivalent of the iraq war, it is not going the way the guy promised. the reasons for doing it are not what people were told. this affects people's lives personally in a much more direct way. >> in a leaked memo from sebelius' own department says

through thirds of businesses and 80% of businesses will be forced to change plans, maybe half of seniors on medicare advantage will be forced out. completely the opposite of all of the vows and promises running up to it. >> that's right. but a week ago in a conference call kathleen satisfactory peel just said it is a shame that republicans are continuing to tpoeutd this politically. it's an interesting thing, when obama care passed the senate had a 20-seat democratic majority, they had a 79-seat house majority. obama's approval ratings were 60%. they've lost the house, the majority is taoeupb year in the senates. the reason republicans are still arguing about this is because they are winning the argument. gregg: jonah goldberg good to see u. nice to have you here on the set. more in a moment, don't go away.

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martha: well, better late than never i guess. president late coming out to