peter: good morning. take a look at this coast guard rescue caught on camera when a man is attacked by a shark. the rescuer joining us live. our slogan this hour comes from ray in north carolina. ray says, forget the rest. when it comes to news, "fox & friends" is simply the best. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- gretchen: good morning, everyone. we hope had you great weekend. brian is taking a little time off and peter johnson jr. is sitting in his seat. good to have you with us. peter: nice to be here. gretchen: maybe you checked out the news over the weekend. maybe you paid attention to this one. taxes are coming to everyone's way now? could it be true? after obama pledged that everyone who made under $250,000 would not feel the tax hike. timothy geithner on the talk

show says middle class, you may be hit. >> the president has said the taxes won't go up for any americans earning under $250,000. doesn't appear is he going to be able to keep that promise to bring the deficits counsel down. >> we can't make those judgments what it's going to take and how it's going to be there. what it's going to take no one cares about this for more than people of the united states. people have to understand we don't have a choice as a country. steve: we don't have a choice because we are spending like crazy. the problem is when you spend a nation into oblivion. sure you can increase the taxes on the most successful. eventually they can't pay because they won't hire anybody. it's like falling downstairs, as you know, as they indicated, peter johnson they will do whatever it takes to bring down deficits. they won't stop spending that means hello, middle class. peter: i don't know, steve, gretchen. i don't know what was he saying? i don't know what we are going to do. we are going to make those

judgments. we haven't made those judgments yet. we do know what the president said during the campaign. he said, quote, you will not see any of your tax increase a single dime. steve: that's pretty clear. peter: it's not so clear -- maybe it is clear. they said we are not going to rule out a tax cut. mr. summer said it, mr. geithner said it and ms. roamer made add ver tans to it too. hit the trifecta. gretchen: this is pretty blunt it's going to happen. with cap and trade, everyone uses electricity. everyone who made under 2 auto thousand dollars was going to be taxed. that was a little bit more obscure, was it not, lads and gentlemen? this is very blunt when they go to say. this it is for people to understand we do not have a choice as a country. yes, we do. at least up until a couple months ago we all had a lot of choices. some are concerned that a lot of those personal choices when it comes to health care and paying taxes will go away now. peter: other issue i heard these

these issues were so dramatic but now mr. good night member is say -- geithner is saying we have to bring these deficits down dramatically. that's going to require some very hard choice. when i hear politicians talking about hard choices. they are not talking about what we are eating for breakfast today. they are talking about taxes. steve: they are talking about a hard choice. we will have to change how we got here. we said we wouldn't increase the taxes on the middle class, but, unless we stop spending, and that's not going to happen, they are going to have to do something. you receipt the tea -- read the tea leaves, could it be the possibility that middle class would have to actually see an increase in taxes? all i know is after that don't be surprised if you see a tea party or two brewing somewhere. this is exactly what the tea parties are all about. gretchen: my exact thought. i'm thinking to myself why don't we get arranged a nice round table and think about tightening

our belt in washington first before we have another tax hike. peter: people thinking about health in the summer august. need to be thinking about health and taxes. the question of the day is do we need a tax hike? people should write in. gretchen: text us. it's monday to text us, peter. if you feel we do need a text hike if you say no text friends 1 to 36288 if you feel we do text friends 2 to 362 8. we will reveal those throughout the show. steve: friday a news flash a program that was supposed to run four months ran four days. jim demint from south carolina regarding the cash for clunkers program. the federal government went bankrupt in one week in the used car business. the question today will the u.s. senate give essentially america's car dealers 2 billion more dollars to continue to take

in used cars that are going to be used in trade tore more efficient cars. gretchen: this is note giving money to car dealers. the real thing is like your maybe giving mowb money to your neighbor so they can spend $4,500 for a new car. this is our. steve: todd has 11 delearships. is he doing ok. gretchen: is he going to be paid by the government for all these cars. some are worried they will not be paid. steve: it sounds like and good thing we have an attorney here. the white house says that they will honor all deals done through tuesday. through tomorrow. so the big -- and the republicans, a number of republicans are saying, look, this is another bailout of the car industry. peter: i guess the idea and they are talking about 250,000 new car sales. if there is a couple hundred thousand new car sales. obviously it's going to effect the car industry.

if you look at it dispassionately, objectively, it's going to help dealers and it's going to be helping manufacturers, because they are going to be selling cars that have been 00 lots. they still have a big backlog and those are cars that may not have been sold. we are -- last year we were like at 16 million car a year track and now we are like at 10 million a year. gretchen: i guess you have total faith in the government that they're going to automatically pay that $4,500 a car. steve: the white house says they will through tomorrow. tomorrow. gretchen: sorry to be absolutely out of sorts. we are just going to take them at their word. bond holders thought they were going to be first in line when g.m. went under. that didn't happen. peter: you think dealers are getting scammed? gretchen: dealer says i don't know if i should sell any more cars under this program because how do i know the white house is going to pay me? how do i really know they are going do that. the paperwork is ridiculous to

get through. changed the incentive from the first day to the second day. trust me, this thing is a mess. and if you are a dealer right now, we are going to talk to one coming up, you be the judge about how they feel about this whole program. steve: one of the problems their computer interface where they made it quite difficult for people to go online to make this transaction. here -- there was a great article that i read somewhere today and it said if they do go ahead and extend it, there is no guarantee that there are actually buyers out there because, in anticipation of the program going online last week, 100,000 people reserved cars. and so then as soon as it kicked. in it's like we gotcha backlog. that's what chewed up a whole bunch of the cars. suddenly that that backlog is gone people are wondering now that those people are getting their money and we hope they get their money, that's the deal. the deal is a deal. will there be enough people to buy more cars in the future?

peter: the only tangible items we are seeing of some kind of stimulus in this country, i had a colleague that had to run out yesterday. we were in the office working. he said i have got to go out to buy this car. i'm trading in that clunker. that is the first evidence i have seen that maybe somebody is getting cash back in their pocket. gretchen: who is it helping really to take these cars off the road? i don't get that part of it suddenly our environment is going to get better? because you take off 12 mile-per-hour mile per gallon car and replace it with 13? the whole thing is so crazy to me. email me, twitter me, i'm having a stuff time with it over the weekend. move on to the next topic of the day. you probably have a lot on your mind for your respected members of congress when they come home from recess. are you going to call them up and tell them how you really feel or go to one of these receptions where they are actually there in person? that's happening across the

country. steve: in fact, we have got some videotape of kathleen sebelius the hss secretary. in philadelphia, the national center over there also in attendance is u.s. senator arlen specter. the people in the audience don't seem to be too happy with what's been going none washington. listen to. this i look at this health care plan. i see nothing that is about health or about care. what i see. [ applause ] >> what i see is a bureaucratic nightmare, senator. medicaid is broke. medicare is broke. social security is broke. and you want us to believe that a government that can't even run a cash for clunkers program is going to run 1/7 of our u.s. economy? no, sir. no. gretchen: she just explained it for me. she involved cash for clunkers, my exact thoughts there. people are a little upset. i think that more and more members of congress and senators are going to hear this when they go home for recess.

steve: here they are after that 30-second question. you would think they would at least try to explain. here is your answer. >> when you have a bill and we have a lot of them that are a thousand pages, is to take my type staff and we divide up the bill, we have to make judgments very fast. [boos] >> and the senate bill isn't written. so don't bill the senator for not reading a bill that isn't written. steve: that would be tough. gretchen: they sound exasperated and rightfully. so. peter: they sound kind of useless and really uninformed and not -- we need to have this every day throughout august. people have to be contacting their congress people, their senators, they need to bring their congress people and senator every day to account in

their neighborhoods, in their congressional districts and talk about this issue. and ask questions. and say if i need a hip replacement, am i going to get it? if i have private insurance now and am i going to lose it? is the government going to decide whether i live or die at some point in the future? what is the future of our health care 1/6 of our budget? steve: a that woman summed it up. something we said on friday. if they can't run cash for clunkers and they ran out of mope four days for something that was supposed to go four months. peter: chose city bank to run it it. steve: go to foxnation.com a great interactive web site where can you sound off. you will find your lawmakers phone numbers and email there very handy. gretchen: how convenient. a couple quick headline force you. swedish diplomats stepping up efforts to find out what's

happening in iran. iran may portray the hikers as spies to use them as bargaining chips with the u.s. on friday sean, joshua, and sarah were hiking when they apparently crossed the border from iraq into pakistan a fourth hiker stayed behind because he was sick. this morning we are learning more about the hikers. sarah is a native and. shayne is a teacher and writer from california. joshua is an entirn mental worker from oregon. the nearly 20-year-old mystery from missing gulf war pilot scott speicher solved now. remains found in iraq's ambar province. thary confirmed his identity using dental reports. captain speicher's plane was shot down the first night of the gulf war. he did not survive the crash and was buried by locals. two children toddlers when he

disappeared. those children now college age and coming up in the next hour, we will hear how his children and relatives are doing from their family spoix person. michael jackson's affairs take center stage in a los angeles court this morning. his estate will be discussed and the custody issue should be finalized. his ex-wife debbie roe will reportedly get visitation rights and the kids will stay with his mom catherine jackson. catherine addressed allegations surrounding her son's death. >> and how do you feel about the fact that this dr. conrad murray is apparently taking the fall for everything that happened? >> all i know that my son is dead and i don't think he just died of natural causes or whatever. he's too young for that something happened. i don't know what it was and i can't say. >> well, there is a new report out this morning that an assistant to dr. murray gave jackson the shot that apparently may have killed him.

the sun newspaper claims gave demerol after dr. murray gave him propofol. the sedative used in hospitals. the combination may have led to a heart attack. steve: coming up grech one on one with laura bush. >> war on terror that president bush made you whole the whole world new abouts with s. changed to a different title and now the obama administration is back to calling it the war on terror. do you find that ironic. steve: put down the remote. right back. tonight's dinner specials: teamwork... time together... real conversations... and memories. all for under $2 a serving.

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now only $99.99 >> take these ideas change dramatic and test in three or four states. if they work apply them to the rest of the states. you do not apply them to 50 states and transform the healthcare system when, in fact, what you may do is destroy it. steve: who are those people on

our couch? governor mike huckabee yesterday echoing a lot of americans' concerns about the rushed health care plan. will congress come back the end of august and be able to pass it? on the panel we have david, the executive executor of go-pack. we're going to talk about clunkers in a minute. this whole health care thing, we just saw the frustration in washington, d.c., rather down in philly, a lot of people are worried if you can't run cash for clunkers why should we think you can run a healthcare system effecting such a big chunk of all of our lives. >> here is the challenge predicting government expenditures is tough. they thought this was going to go until october. it went four days. what happens if it becomes the healthcare system all of a sudden they start the program out and in february they're out of money to do basic surgery. honchts says they can't run cash

for clunkers? all you have to do is throw more money at it that's probably what will happen. steve: where does that money come from, rick? >> i think there is a big money vat off in the atlantic ocean some place. steve: there is a vat they are printing the money with tara is going no, no. >> cash for clunkers program is extremely successful program much the only problem the government had it was overwhelming successful there were technological glitches with the volume of people accessing the web site that was the number one problem. >> this is what is going to happen with health care. sure we can fix the system, it's going to take more money, more money, more money. that's the thing we haven't heard out of washington yet. what about the cost in the biggest underlying problem with health care is that it costs too much. >> we are spending $2.5 trillion now. >> that's why so many people lack coverage and can't get covered. >> we are is pointing 2.5 trillion now.

>> the cost of this is going up faster than anything else in the economy. >> absolutely. it's breaking the back of small business owners. i'm a small business owner. of the notion that we can continue on the course we are on. you wrote an excellent article laying out all the issues. >> the only problem is washington hasn't told us how we fix that problem. steve: if washington wants to fix it, they just have to cut back. it's not going to happen. >> it's called setting priorities. when has government ever produced something more efficiently than the private sector? >> oh, wait a second. >> it's certainly going to be picking winners and losers which is what this administration loves to do. >> government makes a lot of mistakes. let me say this. there are some great government-run products out there. i'm a product of the university of virginia. steve: check her fever. >> product of the university of virginia. state run school. one of the top 25 schools in the nation named by your magazine number 24 on that list. number one public school in the country. government. steve: they do military schools

well. but health care. we aring it golden globe to continue our discussion with the panel ahead. talk about the fact that perhaps we heard a hint of this. could there be a tax hike on the middle class? next.

>> led by the private sector we have to bring these deficits down very dramatically. bring them down to a level where not where we are borrowing from the world is stable from a reasonable level. that's are going going require some very hard choices. steve: "very hard choices" will those tough choices include taxing the middle class. we are back with our political panel right now. rick, washington, d.c. is spending like crazy. they are not going to cut. >> i hadn't noticed. steve: what are they going to have to do. >> this is like a mathematical

mathematical -- the money has to come from somewhere and the math has to even out. it sounds like somewhat of a coordinated plan to start putting the idea out there that maybe the money is going to have to come from the middle class to pay the bulk of the taxes anyway. now, of course, obama got a problem. in almost any way you pars it, he basically said nobody, nobody in the middle class, however you cut it is going to end up paying more taxes under my term. so, they have -- if that's what they're getting at. he has to find a way to wiggle out of that. steve: the president was very clear when he was just a senator i will not raise taxes on 9 a% of the americans who are in the middle class and whatnot. now, you know what? he is right. it sounds like tim geithner is touching his toe toward that third rail in politics. higher taxes for the middle class. >> i find it hard to believe that the president would raise taxes on the middle class. he just initiated the largest middle class tax hike -- tax cut, i'm sorry.

steve: extra dollar? >> latte. 2 $3 billion over two years. so next year, he certainly isn't raising taxes because the tax cut is still in place for the middle class next year. steve: yeah, but the year after that, they could get hit. >> but during this recession, there is no why that this president or any other president will raise taxes. he also left the bush tax cuts in place as well. so people are still benefitting from those. steve: but, at the same time, david, you know, at this time in our nation's history, where we are at such financial peril, it be folly to raise taxes on the most successful people, the job creators. >> you know, finally sun in the obama administration finally willing to tell the truth. always going to be this tax increase on the middle class. steve: you think this was part of the plan all along. >> not enough americans to pate amount of taxes that this administration is now spending. i mean, they are spending us out of control. everything is new spending. and they have increased or they are on the route continue to

creasing taxes on the middle class with the cap and trade legislation that's going before the congress. it's going to be huge tax increase. steve: don't forget the tax in cigarettes which impacts a lot of people in the middle class as well. >> what are you saying all middle class people smoke cigarettes? >> the tax policy center which is nonpartisan in d.c. you are familiar with it they said people earning between 200,000 and 500,000 after taxes are see increase of 4% in income because of obama policies. he has put more money in fundability for children when you file your taxes and check that off. you will get more money back now. his policies, they said actually if you look not me. the tax center. they said his policies are very tax friendly. >> the cost is skyrocketing you are right. that costs. they are extending a lot of the money. some tough choice. will it mean middle class tax

hike? email us now what do you think? friends@foxnews.com. fantastic panel. >> thanks, steve. steve: now go to your real jobs. 28 minutes after the top of the hour on this monday. a fox news alert just into our newsroom a continental flight did i vitterred after it -- diverted after it hit turbulence on board. people injured. details in two minutes. sitting down with the former miles an hour -- first lady. >> president bush made sure all the world knew about was changed to a different title. and now the obama administration is back to calling it the war on terror. do you find that ironic? steve: then a new weapon that could change the way we fight war. and it's 10 times more powerful than the bomb that we are going to look at right there. ten times. meanwhile, happy birthday to tom brady the patriots' quarterback is 32 today. happy birthday, tom.

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miami international airport. 160 people on board. 20 of those people apparently injured. no word on the extent of the injuries or if it was actually called why the turbulence. breaking details as they come in this morning. steve: in other news, peter johnson. >> mahmoud ahmadinejad second term as president gets the green light this morning by the country's supreme leader. iran's tv endorsed the term after the election faced a heated dispute. this after reports emerged iran is perfecting the technology to create and detonate a nuclear weapon. officials need ok from could you main khomeini could be ready within a year unfortunately. steve: former fed head alan greenspan autopsy at this mystic about the economy. he says the united states is climbing out of the recession. slowly but surely. in fact, if you look at the weekly production figures it's clear that we have turned,

perhaps in the middle of last month, the middle of july. steve: mr. greenspan says the enormous popularity of cash for clunkers proves that americans are willing to open their wallets again to get a good deal. gretch? gretchen: the woman whose must went missing on a cruise is getting married again. jennifer hagel's husband george smith disappeared in the middle of the night while partying on the a boat four years ago. the two were heavily drinking. smith was never seen again. she is set to knot in october. legal issues surround her first marriage. she went her separate way after she filed a lawsuit against the cruise line a couple of years ago. peter: new plans to develop the largest conventional weapon used by american military. ultra large bunker buster bomb. you are looking at video of its its predecessor with 10 times less power.

the pentagon says the new 30,000-pound explosive can wipe out weapons very deep beneath the ground beyond the reach of existing bombs. the weapon is meant to serve as a deterrent to the nuclear threat of iran and north -- north korea. steve: tiger woods back in the winner's circle after myth the cut in the british open. grounding out a final round 6 -- by winning three strokes. woods improves to 36 and one. fourth win of the season in just 11 starts. man that guy can play ball. can't he? let's take a look we have a rainy day. things should dry out in the northwest after a frog strangler yesterday in the northeast. a little thunderstorm activity moving toward partials of oklahoma at this hour. thank you very much, keith. taking a look at the current temperatures as you can see. 50's and 60's across the northern half. right along the atlantic 60's and 70's. right now it is 74 in raleigh,

north carolina. about the same for atlanta. then it starts to get warm through portions of texas and along the gulf coast. it's just stinking hot already out in phoenix. it's 9 a degrees in -- what time is it? 3:36 in the morning. stay in your house. watch cable. and 3 right now in orlando. the daytime highs, man oh man, it's going to get hot right up throughout center part of the country with hundreds heading toward, as you can see, kansas, whack throughout front range of the rockies as well. 101 in dallas. it will be 89 in raleigh. and, look at that. temperatures throughout the northeast and new england in the 80's as well. peter: don't see those much anymore 80's in the northeast. gretchen: at least not this summer. here we are in august so here is the wonderful heat. on friday i had the opportunity to join former first lady laura bush at a change of command ceremony for a submarine near and deer to her heart. one of the reasons is because it's called the uss texas. it was in connecticut naval

base. we chatted about pride in her families to life after the white house. here is the first time of our time together. >> affinity with the uss texas. what is it about it that makes it so special? >> i'm the sponsor of the uss sex. it's a newcomerstown larr sub. you can see it behind me. when george was governor of texas, i was invited to be the sponsor. of course, when i was invited, i had no idea that george would end up being the commander and chief and that i would have the chance to get to know the people of the united states military like i do. new commanders waiting over here will actually walk on top of this submarine, will be on top of it in just a second you will get to see it. gretchen: all right. and here he is. >> that's right. i want you to meet commander bob, new commander. >> such pleasure to meet you. welcome aboard. >> bob was one of the military aides at the white house when we lived there to president bush. so he traveled with us a lot.

there is always a military aide. he went me to afghanistan when i went to afghanistan. so, and besides that north in his role as a military aid but as a biker. gretchen: i know with you eight years in the white house, military and troops and their families it was such an important thing to you and the president. i remember seeing him tear up some times when he would discuss the families and their service to this country. i know you feel the same way. >> i really do. i have the chance because george was president to get to know our military so well. and to really deepen my respect and admiration for the people who serve. not just for the people who serve but their families. >> interestingly enough, the whole title of war on terror, which is what president bush made sure that all the world knew about, was changed to a

different title. now the obama administration is back to calling it the war on terror. do you find that ironic? >> slightly ironic, i guess. this is one of the things that the president of the united states is most charged with. and that is protecting our country certainly george knew that and president obama knows that, i know as well. also the other role of the president of the united states is the commander and chief of our military. the commander and chief learns if they don't know before they get there, how important our military is to the well being of the united states and how very, very fortunate we are as a country that so many really distinguished men and women choose to serve. i'm so proud of the crew of the texas proud of theirs their wives and children and mothers and dads who miss them when they're gone. gretchen: it was so nice to sit down with mrs. bush.

she has had this relationship with the uss texas for so many years now. here is a really interesting fact today though. you think members of our military sacrifice. members go on submarines they have no email communication for two months. they have no television. they have no telephone calls. this is truly service. steve: a cone of silence. one thing of laura bush that i read and you would know better than i would, gretch. apparently when texas was originally commissioned. she put her initials on and it they were welded on the front of the submarine. how cool is that? gretchen: for good luck, i guess guess. peter: historically the casualty rate of the submarine service incredibly high. so great she is still involved with them. even though she is not running for office. she is still involved. gretchen: we have more of that interview coming up in the 8:00 hour. the coast guard springs into action to rescue a man attacked

by a shark. the footage will you have holding your breathe and saying i'm glat i wasn't there. peter: gitmo detainees heading to the state of michigan? latest idea being floated through the administration. mike rodgers from the state of michigan to talk about that controversial new plan. steve: i'm sure he is for it. ede i wasn't sure what i needed. i'm not sure what i need. tom showed me how to use mifi to get my whole team working online, on location. i was like, "woah". woah ! only verizon wireless has small business specialists in every store to help you do business better. you're like my secret ingredient. come in today and connect up to five devices on one 3g connection. now only $99.99 it's the chevy open house. and now, with the cash for clunkers program, a great deal gets even better.

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available until late october, unfortunately. and, looking for an airline bargain you? may want to check out twitter, both jetblue and united airlines are now using twitter to notify customers about last-minute travel bargaining. >> the airlines believe it could be a good way to fill empty seats. steve: clever. gretchen: i will tweet to that bravery just another day at the office forever the u.s. coast guard. this time a shark attacks a firnerman over the weekend calling the search and rescue team into action they hadn't seen before. steve: that's right. here is a video of the moment. we are joined right now by coast guard petty officer brian -- he was a rescue worker at the scene and helped to rescue a shark bite victim. good morning, sir. >> good morning, how are you doing? steve: fine. thank you very much. this is courageous. i understand that you have been with the coast guard for how many years? >> 21 and counting. >> 21 and counting. had you never received a shark

call until this week. >> that's correct, sir. >> when you heard somebody had been attacked by a shark what did you think was waiting on that boat? >> no idea. hopefully something we could help them out with and we were able to do that so it was pretty thrilling. gretchen: this particular fisherman was fishing in water thigh high. the guy comes up and takes off a chunk of his leg below his knee. when you got to him was he conscience? what was his state. >> he was a prior coast guard veteran. so i is kind of aware of what we do. but he was bandaged up. he had a tourniquet already on his leg. took us a little while to find a boat. once we located him they set up and lowered me down to the boat

and evaluated him and hoisted him up and got him back on a roll so he could get medicare care asap. steve: sounds like the fishermen who were there did a good job getting the turn kit on him to stop the blood flow. can you describe what it's like being lowered from a moving chopper on to a moving both like that? >> well, i think it's a lot of fun i think that's why i do it. i'm part of the team. controls the hoist. it a good job. good effort all the way around. >> if you have been doing this 21 and a half years and never had a shark attack, what does this tell you? >> expect the unexpected, i guess. we are ready to go and do whatever we are asked and give it our best shot and it worked out well for this mariner. >> job well done, great you were

in position to help those guys out. particularly the guy who got the shark bite. petty officer we thank you for your service and thank you for joining us here today on "fox & friends." >> thank you very much. gretchen: glad to have him around. how would you feel about having gitmo detainees in your backyard, maybe even your neighborhood? some folks in michigan not too happy about a plan that's going to put them there. mike rodgers joins us live with how he feels coming up next.

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gretchen: headed that a kant negligent flight can i verted from miami international airport after a plane hit a lot of temperature turbulence. 168 people on board. 20 of those injured. no word on the extent of the injuries or actually called by

turbulence. breaking details as they continue to come in. peter? steve? steve gretch gretch, thanks very much. peter: gitmo is scheduled to close. according to a report by the "the washington post." the obama administration is planning a courtroom-prison complex right here in the united states to house detainees. steve: to two maximum security prisons being considered. here to weigh in about gitmo detainees going to michigan is congressman mike rodgers who is taking a relaxing vacation now that they are out of session. good morning to you, congressman. >> good morning, good to see you. steve: do you like this idea? i'm from kansas and i was reading in the local papers out around fort lesson worth, they do not like the idea there. >> i think the technical term for this is it's nuts. these are the peej, by the way, that other countries won't take. these are the worst of the worst. they are trained, they know how to radicalize the other parts of the population.

you know, we have to do certain things to protect the guards at gitmo to make sure that they don't understand who their true identities are and where they live and where their families are why you would introduce this problem into our state is crazy to me. i mean, what, for a few dollars? i'm not sure what we gain from it other than it brings all of the trouble that these folks bring with them to our neighborhoods. it's a lousy idea. we're going to do everything we can to convince this administration that we ought to find another alternative. peter: congressman, accepting that you say is true and it sounds like it is true it's a terrible burden. these people are not -- these the words's worst people. nobody else wants them but we captured them. and at a time of war and at a time of sacrifice. isn't it your patriotic responsibility to accept these people into your district, into your state? why shouldn't you bear that burden? >> we built a prison just for this particular problem.

it's a good prison. it's well-managed. , well run, the prisoners actually do pretty well. they gain weight. they get healthy. it's called get mow. why we wouldn't use that facility that keeps them away from the other prisoner population is nuts to me. i think, you know, there is a little bit of tension here. i think even if administration realizes they stepped in it. once you start looking at these files. it takes your breath away at some of the seriousness of these individuals best place to house them is called gitmo. it's a prison just like you want to send them to the united states without all the problems that go with it. >> how do you get there to that point, congressman. what can do you to ensure that? is there going to be a vote on congress on that issue? are there enough votes that accept your position?

>> here is the good news. one point we had a robust debate about this. republicans and democrats came together on this once you can figure out who these individuals are and said maybe we ought to slow down gitmo. that was the first step. now what we need is americans to stand up and say, you know what? don't bring this trouble to my backyard, mr. president. it's a lousy idea. let's use gitmo. it's a great prison. we need to get americans involved in this decision as well as getting other members of congress to understand exactly who these people are and all of the other problems that come with bringing them to your community. steve: all right, congressman. you just said we need to get other americans involved. what do you want people to do? there are a whole bunch watching now. >> call your congressman, call your senator and called white house and saying we don't want gitmo prisoners in our backyard. this is the hard core of the hard core. don't let them radicalize other prisoners and jeopardize our community safety.

peter: not just michigan but other states. >> maybe kansas. steve: since you are from michigan, what do you think about this cash for clunkers thing? i mean, a lot of people are saying, look, it's another bailout of the car industry. i know that's in your state. but it is another bailout. >> let me tell you why this is not a bailout. this is intensive program. the bailout is where they hand them cash for mismanaging their companies and saying here is u.s. taxpayer dollars, good luck with it. this is consumer driven. if you don't want to take a part of it, don't. it's incentive. by the way we give these same kind of incentives when you get a tax write off for your house. we give a mortgage deduction because we want to have more houses built and produced and bought. same thing with the car. this is incentive program. it's not a mandate or cash give away. mr. car dealer, you have got to earn it. if they want to bring that car, in have you still got to earn it at the end of the day it's a two-for gets the money in the economy which all the stimulus money is absolutely wasted. we took that the money from that

program. >> thank you, congressman. very thoughtful guy. >> go out and buy a car and make sure that's an american one. steve: that's not part of the deal right now. thank you, congressman. peter: 70 grand on her college tuition. it's not helping her land a job. get, this what she is doing is suing her alma matter. we're going to report and you are going to decide. steve: cheating on your wife not good. cheating on your wife with three women really not good. what those three women did when they found out got them all arrested. that story straight ahead. it involves a motel. how does jell-o sugar free pudding fit all that rich, chocolatey taste in 60 calories? ♪ ♪ oh, so delicious who cares? jell-o sugar free pudding. every diet needs a little wiggle room.

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(door crashes in) (broadview alarm) (gasp and scream) go! go! go! go! go! go! (phone rings) hello? this is mark with broadview security. is everything okay? no. someone just tried to break in. i'm sending help right now. thank you. (announcer) brink's home security is now broadview security. call now to install the standard system for just $99. the proven technology of a broadview security system delivers rapid response from highly trained professionals, 24 hours a day. call now to get the $99 installation, plus a second keypad installed free. and, you could save up to 20% on your homeowner's insurance. call now - and get the system installed for just $99. broadview security for your home or business - the next generation of brink's home security. call now. gretchen: hope you had a great weekend. now it's monday, august 3rd. thank you for sharing your time with us today. the obama administration promise nod new taxes for 95% of

americans. but now word that taxing the middle class may soon be a reality and the news coming from two senior administration officials. steve: meanwhile, president bush was attacked every time the death toll went up in crosswalk but not a -- iraq. not a peep. dana perino is fired up about this one. she is going to join news about two minutes peter johnson. peter: thank you. cheating on your wife is bad. cheating on your wife with three women is three times as bad. what happened when those women found out? got them into a very sticky situation. you can say krazy glue? oh, no. our slogan this hour comes from becky "fox & friends" in the morning will hook you without warning. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org--

steve: live from studio e in rockefeller center it was "fox & friends" thank you for joining us peter johnson jr. is wearing hesitate red tie. gretchen: i like that slogan hooking you in for "fox & friends." alluding to that last story how that got good hooked in after cheating. we will explain what the hooking part was. >> this is the gorilla glue hour. gretchen: you gave it away. steve: you are not going to believe twhunget bring you your monday headlines. continental flight making an emergency landing after that plane reportedly hit a lot of rough turbulence. 168 people on board. 26 passengers hurt. we don't know the extent of the injuries. continental flight 128 headed from houston to rio landed at the miami international airport.

another developing story. swedish diplomats stepping up efforts to find out what happened to those three americans arrested in iran. this as national security expert said iran may portray the hikers, you will be shocked at this. yep, they are going to call them as spies and use them as bargaining chips with the united states. on friday shane bower, jash i can't and sarah were hiking when they apparently crossed the border into iran. a fourth hiker stayed behind because he was sick. this morning we are learning more about those hikers. shane. baeur based in the middle east. sarah teacher and writer. and joshua environmental worker from oregon. one automaker already putting the brakes on cash for clunkers incentives. chrysler says it's dropping the plan offering to double government rebates. the program went into effect last week. alreadies, as have you heard run out of cash. to keep it going the senate will

need to approve another $2 billion in funding. a warning from economists this morning. oil supplies running out fast. the international energy agency says the demand for oil is too high and the current supply is disappearing faster than predicted. the group says the energy crunch could cripple any chances of international economic recovery. the iea says it will take 10 years for the supply to peak but we need to act now to prevent a crisis then. doctors have discovered now a new h.i.v. strain. it was previously found in gorillas but now appears in humans. one woman from the central african country recently tesd positive. different than the three strains known to cause aids. well, this is one interesting way to try and get a job. a woman is suing her college saying it's their fault that she is still unemployed. trina thompson wants her 70 grand in tuition back from monroe college in new york city. she says the school didn't do enough to help her find a job since she graduated in april.

but monroe college officials say they do plenty to help their grads find work. a very interesting legal situation there, peter. i'm not so sure you can sue your schooling but, maybe you can now. peter: depends what the contract is. some of those professional schools, those trade schools or technical schools, think she got an advanced degree there sometimes they make promises about what they are going to do. what kind of placement office they have. i don't think they guarantee a job. but, you know. steve: one of the greatest jobs in the world would be to be the press secretary to the president of the united states and that's the job that that woman right there, dana perino had once upon a time. now she is a fox news corinth tore. -- contributor. good morning to you, deign navment turbo tax geithner and larry summers were both on tax shows and alluded to the fact that the obama administration is willing to take some hard choices, do all the hard stuff to bring the deficits under control. which could mean a tax increase

on the middle class. what do you think about that? >> it's a clear violation of what president obama said he would not do and the campaign. i would bet that in about 12 hours from now, you have seen that president obama came out and had to reassert that he is very clear that he is not going to raise taxes on the middle class unless they have decided that to pay for some of the programs that they are trying to put forward that they will have to make that tough decision. if they do that i think that will be very damaging, but another thing that i think that's interesting is that they wonder why america is confused or concerned that their taxes are going to go up. one hand the president is saying no i'm keeping my campaign pledge yesterday you had the three top economic advisors to the president floating the very idea. that's why people are concerned and confused. >> gretchen: they already sort of violated the campaign promise with cap and trade. everyone uses electricity.

ostensibly people under the height ceiling that he put at $250,000 they were already going to be taxed if that went through. this, to me, just seems so much more blatant and actually stating yeah we said that six months ago but you know never say never now. >> right, energy tax is more of a stealth tax. you are going to pay for it everywhere in every good. i think if people actually saw their rates go up in terms of their payroll taxes or income taxes then you would see more of a blatant disregard for that campaign pledge. i think it's going to be very hard for them to do that. they can't reconcile the two issues they want to accomplish. they don't want to raise the taxes but they want to increase the spending on government programs. peter: let's talk about play tants disregard. watch larry summers when he was asked about raising taxes on the middle class. >> there is a lot that can happen over time. but the priority right now and so you good idea to absolutely

rule things -- rule things out no matter what. what the president has been completely clear on is that he is not going to pursue any of his priorities, not health care, not energy, nothing, in ways that are primarily burdening middle class families. peter: well, listen, here is the text questions of the day. do we need a tax hike? you say no text friends 1 to 362 8. if you say yes text friends 2 to 36288. >> i would text friends. no. steve: brouhaha, beer summit it all happened at the white house on thursday night. 6:00. the president of the united states sat down with professor henry gates and sergeant james crowley. they had a beer. gates was apparently over the booked at a martha's vineyard book festival.

he sold out withstanding room only with a new book he has got. dana, what exactly happened on thursday other than the end of an episode where the white house was knocked off message for eight days? >> i say that you are just playing a individual overthe server coming over to serve them the beer. i just cannot imagine that we would have had this event in the public. i think it's perfectly find and appropriate to president obama invited them to the white house. i think it probably would have been better to keep it private and in the residence and keep it away from the public eye and release a white house photograph. instead they made a whole scene and event to. me they basically rubbed the spot on the wall and made it a little bit worse. now, if gates and crowley are now reconciled and it can help people recognize that there are ways to resolve your differences without yelling or arresting, that's probably a good thing, too. on the one hand on the other

hand. gretchen: i don't know if they're reconciled. steve: nobody apologized. >> 15 minutes of fame and they are milking it. gretchen: they are and we are about to get to that notice how they changed from circular table to rectangular table. gretchen: president obama didn't want to make it look like he was siding one w. one or another. circle table to make it all look like they are kum ba yahing. peter: yoga mat. >> i thought it was interesting that short sleeves and the two guests wearing dark suits. i know it was very hot and humid in washington, d.c. i thought that looked a little odd. steve: hot in d.c. no wonder they are bringing the beers out one at a time. professor gates now taking. >> i offered to get his kids into harvard. [ laughter ] >> if he doesn't arrest me every day. steve: there, professor gates,

dana joked, that he promised sergeant crowley he would get his kids into harvard provided he doesn't arrest him again. how long does this episode last? >> i think it's 15 minutes of fame and it will fade fairly soon. but their names will probably be familiar for a while. steve: yeah, you are probably right. gretchen: let's talk a little bit about something that you would also know. that is how presidents speak and as you as press secretary enencourage them to speak and drop phrases they use all of the time. somebody has written an article saying that president obama uses this phrase often. let me be clear. let's listen. >> first of all, let me just be clear. >> now let me be clear. >> so let me be clear. >> so let me just be clear here. >> i just want to be clear. >> let me be clear. >> let me be clear. i want to be be clear. >> i want to be clear. >> let me be clear. >> so let me be clear. >> let me be absolutely clear. >> so let me be clear. >> i just want to be clear. >> first of all just. steve: ok he is clear. he says clear a lot.

what's up with that? >> i bet if president obama saw that he would be surprised and probably didn't even realize that he says that you will at time. when you put them all together like that, it is kind of shocking, but, i think one of the reasons that presidents do that is because there are very complicated issues that they are trying to explain. like health care things can be misintrer prettied when it goes throughout mainstream press and headlines. i want to be very clear on where i stand listen to what i'm about to say. peter: when he says everyone is going to keep your health care and going to keep your doctors and then you start to pick it apart and find out that that may not in fact be true, when you accentuate something that appears to be clear and then upon dissection it's not really clear doesn't that set you up for failure? >> i think does. i will tell what you think is going on white house.

over the weekend somebody says the white house has a communication problem. i used to get that a lot, too. i think they have a fact problem. the fact problem is that their health care policy has been scored so terribly by cbo and float out these ideas they might raise taxes on the middle class and it might break a campaign pledge. have you things muddled and you have a difficult august. steve: just the facts, ma'am. dana, sit right there, we will continue the conversation with you. >> thank you. steve: her boss, slammed every time the death toll went up in iraq but not a whole lot is being said about casualties in afghanistan. dana sticking around to weigh in on that story straight ahead. gretchen: every day serve on craigslist showed up. the problem is the boy is not for sale and the mother not happy at all. how this could happen to you. kelly saunder's nature valley,

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gretchen we want to update you on our top story. fox news alert. learning that four people seriously injured when that plane reportedly encountered some really rough turbulence that continental jet. we are getting a first look at the scene. these are pictures live out of miami right now of that airplane. that's where the plane out of rio just landed 168 people on board. 26 of them injured. continental flight 128 headed to houston. we will keep a close eye on this developing story and bring you more information as soon as we get it steve, peter? peter: july was the dead liddest month in afghanistan for u.s. forces since the war began. no one is talking about it. really. when president bush was in office, the iraq war was front page news. steve: absolutely. why the difference in the coverage between iraq and afghanistan? peter: back with former white house press secretary dana perino. dana, what's going on. is there a double standard here? we see that over the weekend nine u.s. and nato soldiers were

killed. in afghanistan. in the past, and that's a terrible, terrible loss in the past during president bush's tenure, when we had severe loss of life like that, there was a generalized attack on the war policy in iraq. why aren't cecing the same today from the media. >> i think that early on, maybe six months after the iraq war, you started seeing a shift and people suggesting that iraq was the bad war and afghanistan was the good war. that could be playing into it a little bit. another thing that i think is very interesting and possibly troubling to me is very few media outlets have ar sets. dangerous place to be. they frankly don't have the money to dedicate those resources there in iraq they did have resources. so i think that's partly a

little bit of it. i also would point out that, you know, the military always understood the fight. the news this morning that our filter has continued to serve and now found the remains of sergeant speicher from the first gulf war tells you that our military gets it. and president bush grieved for every single one of those soldiers because he is the one that had to ask them to sacrifice but it's also, moving forward it the advances in iraq and afghanistan there is a seed change in all those places. afghanistan is very dangerous at the moment. steve: sure, there is a seed change. there is a war. that's wife we cover it here on fox. i don't see it any place else. >> there has been definite lay shift from the bush administration to the obama administration when you look at the front pages of the paper. partly that's because president obama has aggressive domestic agenda. that has helped.

casualties in iraq have gone down dramatically. in afghanistan the policies remain largely the same. they are putting more troops into afghanistan. president bush was planning to do that as well. the fighting is different and it is a different war as well. steve: date of birth that perino. you just have a few more hours -- do you have a clunker? you could sell it for big money by tomorrow. >> i should tell you it is so complicated to figure out whether or not you have a clunker, i think it's better that i hold on to my jeep liberty. steve: i think it's probably a good idea. thank you, dana. >> bye. peter: no wrawt -- wrath like that of a woman scorned. about three women? what about four women? what they did to the married man in question got them arrested. can you say krazy glue? steve: you can say uncomfortable? a wedding ceremony turned dance party. there is another video heating up the web, this one divorce court turned dance party.

you got to be kidding. what is it with you lawyers, peter? peter: i'm not there. ♪ ??ç

steve first, 67 a thousand dollars, that's how much one joel tennenbaum was ordered to pay for illegally down loading and distributing 30 songs. he actually got off easily. he could have been ordered to pay more than $4 million. i bet he won't do that again. next, $6.2 million. that's how much the irs is trying to get from actor nicholas cage for failing to pay income tax. they put liens on both his new orleans and hollywood mansions. nick, nick, nick. finally 2 $3.4 million. that's how much adam sandler's

funny people took it at the box office this weekend. making it number one in tinseltown. gretch? gretchen: you are not going to believe this story hell hath no fury like a woman scorned. what about lee three? that's what a man found out when he was lured by one of his lovers and bound and krazy glued by the group. one of the women, which is his wife. we're joined by defense attorneys. good morning to you. the facts of the case are a little diesy. this guy is a cheater, is he married and getting it on with three other women and they all decide to band together and do what, jennifer? >> well, they conspire, if you will to get him to a hotel room, and then super glurex shall we say his private parts. this was after the women found out that this married man had been cheeghts, not only on his

wife but also on his three other girlfriends. this man found out the hard way that his actions. gretchen: no pun intended. >> have unintended consequences. gretchen: i know you feel his pain but would you represent him? >> represent him? yeah. i mean as a prosecutor. the way i look at this is like cheating on your wife is bad. cheating with three women is worse. having your private part glued to your stomach, painless -- priceless. not painless, priceless. here is the deal. there are times in our society where like a wife is beaten by her husband and battered woman's syndrome or a outcome woman is raped -- young woman raped by her dad and post-traumatic stress disorder. the law allows leniency. what happened to them doesn't rise to that level a guy cheats on you, yeah, you can yell and scream at him but you can't get

physically abusive. gretchen: six years in jail. >> six years is a lot of the time. in wisconsin, arthur, you remember, maybe you know this or not, but it is a felony to commit adultery in wisconsin. this man actually could be prosecuted himself if taken very seriously. >> if that law was in effect in new york, the jails would be overflowing. i mean, these women are in trouble. i think anyone going to jail for six years. gretchen: she brings up a great point. i didn't know that about wisconsin. did you. >> active law. some states where adultery is still a felony or a misdemeanor. >> i can live in wisconsin where they have these laws. i'm a good boy. that's all i'm worried about. >> this man wasn't a good boy. these women shouldn't be the only one playing. they are played by a player. >> you can lure to a guy who the hotel room, dupe him. cut off his clothes and glue his private parts to his stomach.

you can't do that. >> you can't play around the back of your wife or mistresses without getting a little bit vigilantism is bad but what goes around comes around. gretchen: to me it depends on who is sitting on the jury men or women? great to he so you this morning. his children were just toddlers when captain scott speicher disappeared during the gulf war. his remains finally found. his children are college aged now. coming up we will talk to the family spokesperson to see how the family is dealing with that adoption advertisement on craig's list used this boy's photo he already had a family and he wasn't for sale. internet scam using your child's picture and how you can stop it supposed to implode but it just didn't work out that way. more of this demolition gone wrong in two minutes. come on. [ kissing ]

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you could buy 300 bottles of water. or just one brita filter. ( drop plinks ) brita-- better for the environment and your wallet. chocolatey taste in 60 calories? ♪ ♪ oh, so delicious who cares? jell-o sugar free pudding. every diet needs a little wiggle room. it's the chevy open house. and now, with the cash for clunkers program, a great deal gets even better. let us recycle your older vehicle, and you could qualify for an additional $3500 or $4500 cash back...

on top of all other offers.. on a new, more fuel efficient chevy. your chevy dealer has more eligible models to choose from - more than ford, toyota, or honda. so save gas... and money... now during the chevy open house. go to chevy.com for details. steve: that's your shot of the morning. now it is your video shot of the morning. remember this great video we showed you last week. peter: it is great. ♪ steve: an actual wedding party mixing it up. that's not a dance floor. that's a church. one group has decided that that couple doesn't make it, so they made a parody set in divorce court. here's the new video. ♪ steve the new video from new

york production says it's just a joke. they are not hoping the original couple gets divorced. peter johnson who is a practicing attorney in new york city brian. peter: that is new york. steve: you have seen that before? peter: a lot of that low motion kind of upsetment -- i don't see anyone hitting anybody. steve: i had no idea new york city bailiffs were so limber. gretchen: that would get an order in the court from the gavel. peter: that one is funny, too. steve: clever. 27 minutes before the top of the hour, peter johnson. peter: now your headlines we start with a fox news alert. you are looking at new video just into our newsroom of passengers being loaded into ambulances at the miami international airport. that's where continental flight

12 just made an emergency landing after hitting really tough tour bur buoy lens. 168 people on flight. four seriousry injured. headed to houston. a live report from the miami international airport. we will have it in just a few minutes. gretchen: mujahideen second term as president gets the green light this morning by the country's supreme leader. iran state tv confirming ayatollah khomeini term after that dispute. this after iran says they have perfected the technology to create and detonate a nuclear weapon. officials apparently need the ok from the ayatollah to produce the country's first bomb which could be ready now in one year. >> is ford jumping back into the driver's seat thanks for the cash for clunker's program. the automaker will release u.s. sales figures today showing increase in doe mess sales over

last year. first major gad gain for ford in nearly two years. the first monthly increase from a major automaker since the start of the financial crisis. widely popular cash for clunker's program and government incentives being credited for the boost in sales. for that program to continue, the senate will need to approve a 2 billion-dollar extension this week before the senators go on vacation. peter: is jim class -- gym class getting too dangerous? increase of 150% from 1997 to 2007 data says larger gym classes and decline in school nurses could be causing all the sprains and strains. researchers agree the benefits of physical education outweigh the risks. gym remains one of the main

tools for combatting childhood obesity, something we always look forward to. gretchen: massachusetts mother horrified after he sees her son being used in online adoption scam. they ripped the picture off the family blog, they advertised that child for adoption on craig's list. >> i didn't realize how easy it is to be part of the scam and have your photograph being used nor likeness being used or information being used out there as part of a scam for people. >> she said she responded to the ad herself described the son as an orphan. she eventually contacted the fbi. no child could ever be for sale any way, could it be? steve: got to hope not. check out this wild video. building implosion goes wrong in turkey. instead of imploding, it toppled over. it went over that wait a minute stopped just inches from the

building next door. fortunately nobody was hurt. flower factory being torn down to make way for a shopping center. gretchen had a good question though that is sen sacialg. kids for -- sensational. >> kids aren't for sale and the mom happens to be on the craigslist? peter: only like oliver twist. steve: my aunt got something in the mail about cremation. the man on the ad depicting cremation was my father. a professor had sold a stock photo of my dad to this cremation company. my dad is not for cremation. peter: he didn't bring a lawsuit lawsuit. gretchen: can you get free legal counsel here. peter: that is so creepy. gretchen: something else that

some people think is creepy is the health care plan. i hate to be so blunt about it peter you have been doing investigation into this. we have had a lot of emails from tons of our viewers. steve: hundreds on friday. gretchen: they're desperate for answers to some of these questions. here is number one. peter: as a small business owner who provides health care to my employees, will i be have the sweeping authority to change all of my employees to the government plan or will the individuals have a choice to move to the government plan? you know, the first part of it, a lot of people are concerned about the public option that they're going to lose the opportunity to have their observe private insurance. and i think what is being counted on by the government is providing cheaper, alternatives to private insurance. not necessarily better and a lot of experts are saying it will not be better. it will, in fact, be worse based on rationing and based on restrictions and coordination to health care. the argument against the government option is that even though it will be cheaper, it

will provide less care and it will put private insurance companies out of business because employers, like you, will be switching over to government health care in order to reiss costs but not necessarily knowing the consequences or benefits it will be over time. gretchen: they will either be penalized if they don't provide it for everyone or forced to take the public option because it will be cheaper. >> it will be cheaper. you will be penalized it's not clear $500,000 level or $250,000 level. there will be an employer tax up to 8% if you don't provide the benefits. so it's influx but it is a little bit disturbing at this point. steve: the worry is if there is a government option, it would undercut private insurance and they would wind up going out of business. that's something else. meanwhile, gary from green castle, pennsylvania typed this

in on friday. he wants to know: peter: gary from green castle that's not in the cards. they have primo sweet health care. they have got their own clinic for congress in washington. they have got a choice of ten different plans. they pay only $20 an office visit. they spend $10 for generic drugs. there is no preexisting conditions. the minute they go into congress there is no waiting period for them. they pay a lot less than we pay in terms of all the coverages. so, they are not looking to give up their health coverage in congress on any one of these five plans. so it's obvious that the plans that they have are better than the plans most americans have now and will certainly be better in the future.

steve: do as i say not do as i do. >> in terms of what is better and what is not better, i also got an email. gretchen: let's tease people with that. peter: i will. talk about it tomorrow. canada. steve: if have you got a if you have got a question about health care email us. gretchen: four passengers seriously injured on continental. the plane just made a landing at the miami international airport. renee, so so many people want to know what happened to this flight. >> well, what we have been told so far is that 26 people have been transported. and they were injured on board. they are blaming turbulence for that many of these people complaining of back injuries, neck injuries, at some point these things got pretty bumpy up in the air. they had to be taken down and treated and transported to area

hospitals here. we are told the plane did land safely. those that were on board that were not injured, they were able to continue on to their destination to houston, texas. the flight we are talking about is couldn't negligence flight 128 and it ---continental 198. several rescue units on the ground. things are back to normal. those folks that were not injured on their way back to houston. steve: all right. renee. we thank you very much for that live report from miami. all right. straight ahead. too many clunkers, not enough cash. the cash for clunkers program turning into a nightmare for some local car delearships. we will talk to one dealer who says he is at risk at losing nearly half a million dollars because of a government snafu. gretchen: then meghan mccain isn't one to sugar coat things. this morning is no different. she is joining us live from a biker rally to tell us how she really feels about today's top stories. maybe she will be on a harley.

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steve: 2 billion more dollars could be purend in to save the cash for clunker's program provided the senate goes along with it this week. some are worried the dollars are going to run dry again and the many who made deals won't get. gretchen: one of those is the owner of mitsubishi in new york. he risks losing if he doesn't get reimbursed. good morning, jim. >> hi, gretchen. how are you? gretchen: i'm doing just fine today. let me put this out there first and foremost. this has been good for dealers. it's driven up business. people have taking add san damage of this program there is a downside to it as a dealer, what is it? >> the downside to the dealer

is, it's a very complex program. as you know, it's run by the government. so, it's very uncertain whether we are going to get paid or not. there is some dealers out there with over half a million dollars out on the street. we have to lay out this money. ok. and we feel very uncomfortable about it i have actually stopped doing the deals. i have 10 burning gas and i have got $45,000 in jeopardy. i hope i'm going to get the money. i think i'm going to get the money but i stopped doing the deals. when somebody comes in for a clash for clunkers in my dealership. i try to convert them to a conventional sale. it works out in most cases it works out very well. steve: jim, one of the problems with this doing a deal with one of these clunker things, in addition to the government web site just being completely overwhelm and not work right to qualify for the money, you have got to guy the smother of the carks so if the deal doesn't go

through, you are stuck with a husk of junk? >> that is exactly right. it can be disastrous if you don't do this correct. there is actually a $15,000 fine if you screw something up on this. it's a very tough deal. i personally don't like it. it's great for car sales. i have got a lot of people into the showroom but there is an inherent expense to the taxpayer. i don't think this is the function of government. i mean if they do it. gretchen: your neighbor is paying for the car for your next door neighbor 4500 bucks because it's taxpayer money. >> that's exactly right. why should my neighbor pay for a car. for many cases it's for the purchase of a lexus or mercedes or bmw. this is not poor people it does nothing to help the unemployment rate. every dealer i speak to they're not hiring extra people to take care of this. this does not for unemployment. gretchen: you mentioned foreign

cars. you had a chrysler jeep dealership as well that was fehrman nated because it was profitable. now you have this mitsubishi that is foreign. by estimates, do you think this will help american car sales? >> automatic sharier it will help but in a much lower percentage. i know some dealers running out of ininventory they have sold so many tars. what i'm against is the government running this. if they prop up the auto industry like this. what about the marine industry? what about boats? what about appliances? what about washers and driers. i mean, where does it end? >> steve: sure. exactly right. where does it end? when we run out of money. he this petitioner's exhibit some more. gretchen: we will have to z. what the senate does today to keep this program afloat. they ceechingt on fleeting it up

so there is no problem. thank you sir for joining us live. >> thanks a lot, guys. gretchen: for 1 years captain scott speicher's family wondered what had happened to him. his jet shot down during the first golf -- gulf war. his remains found. steve remember when president obama promised to slash taxes for the middle class. it looks like he might have to jack up their taxes on the middle class. you will hear what his administration is saying now. it's a coordinated effort. first, on this date in history, august 3rd, 1949 two basketball legends merged to become the nba. on this date 2000 becomes number one nsync . .

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peter: after 18 years, scott speicher's remains have been found. the captain was shot down in iraq in 1991. steve: right now we're joined by sidney, the speicher attorney general and spokes woman. she joins us from jacksonville. good morning to you, sidney. >> good morning. steve: you know, for these many years, i'm sure the family has been holding out hope. you know, maybe there was something to the stories that those were his initials carved in the wall in that prison. and i guess now they know the answer. do they feel closure, do they feel like now they know what happened? >> they know that scott is no longer with us and that he's deceased and that is -- that's

really the major issue was, is he now alive or dead? we now know he's dead. there are numerous questions on how he died. and we will tie those up with the military. we have extensive imperical data. we have interviews with veterans from the 1990's to the information about the initials in the ah-hadid prison. so all of that has to be coal lessed so we can get an accurate answer. peter: now there's confir nation of the death of the captain, what is the grieving process? how is the family reacting to this -- to this confirmation? we can talk about it in a vacuum, but what are they going through? what are they talking about? how are they expressing the emotions now? >> i leave them, of course,

with their private grief. and this family has always been private, as you can tell from their absence. you and i have talked over the years. and they have not. this has always been about captain speicher. we have because of good communication with the navy each time there was an excravation we knew ahead of time. and there was time to prepare. and there have been up and down this roller coaster, yes, sir. steve: cindy, what brought us to this point is within the last number of weeks somebody over in iraq said, oh, i was there the night of the first gulf war, the first night of the first gulf war when the plane went down and i saw those guys bury a u.s. service member over there. and then he wound up taking i think it was a unit of marines over there and they did locate

his body. apparently matched it with d.n.a. and the jawbone and things like that. you know, you and the family have done a really good job reminding people that we had to know what happened to him. >> well, of course. a couple things. i'm a little skeptical and maybe that's because i'm a trial lawyer that the veteran materialized at this time because of lost interviews over time and we have a very good intelligence community. we'll put that aside. i can tell you that we're proud of those marines for getting scott's remains, where they found them for whatever reason, but we're very proud of their efforts and of the improvements that have been made in the process so that no family has to go through this again. steve: ok, cindy laquidera from jacksonville, florida. and please extend our

condolences to the family. >> thank you. i certainly will. thank you for your continued interest. steve: as we honor the return of captain speicher, we're reminded of the tens of thousands of service men and women missing in action. peter: there is still 1,737 personnel still lost from the vietnam war. one civil van was shot down from the cold war. 125 crewmembers still missing. 8,055 missing from the korean war and more than 78,000 americans still remain unaccounted for from world war ii. we pray for them and thank them for their service. steve: the american people starting to get frustrated with all of this government involvement. one woman that had wanted enough and wanted her represents to know -- representatives to know. >> they can't run a cash for

clunkers program is going to run, i don't think so. peter: and instead of running elbows with washington elite, i don't think that's meghan mccain yet. but that's a rally in sturges, south dakota, near needle park and we'll be live within the next hour. steve: i think he can see us. peter: good morning. good morning. hi. come on. [ kissing ] come on. good girl. mollie's never looked better. i really was amazed to see the change in her coat.

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[captioning made possible by fox news channel] steve: new pictures coming in from the miami international airport where at least four passengers seriously hurt. we're live on the scene with the latest information on an emergency landing in miami. gretchen: and sitting down with the former first lady. >> the whole title of war on terror, which is what president bush made sure that all the world knew about, was changed,

to a different title and now the obama administration is calling it the war on terror. don't you find it ironic? gretchen: her answer only on "fox & friends." >> and four police officers on the wrong side of the law plotting to place the blame on a woman. that woman is joining us live and our slogan this morning comes from xavier from virginia who says the other networks takes you on a crazy ride but on fox news they report, you decide. good morning. captioned by the national captioning institute ---www.ncicap.org--- steve: welcome aboard, folks. gretchen: good morning. steve: brian johnson in for brian kill my. and this is the first time we've done the sturges bike run

in sturges, north dakota. meghan mccain, the daughter of u.s. senator john mccain, do you think she'll ride one of those? gretchen: i bet she is. it was her favorite campaign stop when her dad ran for president. she vowed she would go back to old supporters. 150,000 of them rallying for john mccain. peter: hope of the buffalo chip, as you can see. steve: oh, that's where it is. gretchen: in the meantime, let's talk about something that affects almost every single person in america and that's taxes and too could it mean that the middle class will get hit even though president obama campaigned during his speeches that you would not be touched with one penny? well, now his treasury people, a lot of them yesterday in the talk shows started talking about this middle-class tax. see what you think. >> the president has said the taxes won't go up for any americans earning $250,000 but it doesn't appear that he's going to keep that promise if

he is going to bring the deficits down. >> we can't make the judgments of what it's going to take or how we're going to get there. no one is going to care about this more than the president of the united states is for the people to understand that we don't have a choice as a country. steve: peter, that's a little ominous. peter: the president said you will not see your taxes increased by a single dime. so we saw from the trio yesterday gather in, romer and summers that it's not if, it's within your taxes will increase. and so will there be clarification from the white house today or are they laying ground, lets us know that, yes, your taxes are going to be increased? steve: dana perino said, don't be surprised if the president will come out within the next 12 hours to walk that back unless it's part of the plan. now, keep in mind that the white house and our pals on capitol hill is spending our money like crazy. look at the stimulus, look at

cap and trade, look at the health care. where is all that money going to come from? it's going to have to come out of somebody's pocket and if they can't keep it out of the superriches' pocket it's going to come out of your pocket as well. all they have to do is stop spending as much but they're not going to cothat. gretchen: that would be interesting since they're asking all of america to tighten their belt. you might want to do the same thing, trying it out, you might like it. but i think it's a concert effort with all three of them come out yesterday. i don't think it's a fluke that all three would talk about something that's tab auto on the -- at that bue on the campaign -- taboo on the campaign trail. i don't think the president said, oh, the top three of my cabinet made a mistake. i think this would be a severe mistake to the obama administration because if you broke the promise after six months talking about hmm about health care, hmm about

spending, i don't think this will pass over quickly. peter: the let me be clear line saying may be the new read my lips line. during the campaign resaid taxes will not increase for 95% of americans, when you -- and the point -- gretchen: that was the biggest point of his campaign. peter: absolutely. so you have the top three economic advisors to the president on a sunday on different shows all saying the same thing, there was a new found recognition yesterday that there is a deficit. oh, we do have a deficit and it's going to cause us to make some hard choices. hard choices equal higher taxes. steve: the problem -- and forget about that. just think where the president is sitting and he worries about things politically. if they were to jack up taxes on the middle class in advance of the mid term elections, that would not be good for his party in charge. you know, some have suggested that he had it all planned all

ploong. i don't know if that's true. if you're going to jack up the taxes, do it after he has his party back in party for another two years at least. gretchen: i'm not sure he had it planned in advance but i am pretty sure that he was not able to get his hands on the very secure information that the president got his hands on and when he got into office he is like, how do we pay for these programs that i was talking about? steve: they were his programs. peter: look, you have stimulus packages. you're trying to save the fiscal system. don't do health care at the same time because it's a tremendous economic inimpact to put 50 million more people to be on government-run health care. are we going to do it for less? steve: now it's time, ladies and gentlemen, get out your phones. do we need a tax hike? if you say no, 92% of you said no and 8% of you said yes. so we don't know if you're middle class or lower class or

upper class. a wide margin, ok, overwhelming "fox & friends" viewers that now is not the time to do that. gretchen: a lot of people right now is not taking a summer recess to enjoy and relax. now that members of congress are home on their turf, they're hearing a lot of angry people like this woman. listen to what they said at a rally in pennsylvania. she hit the nail on the head, according to a lot of people. >> i look at this health care plan, i see nothing that is about health or about care. what i see -- [applause] >> what i see is a bureaucratic nightmare, senator. medicaid is broke, medicare is broke, social security is broke, and you want us to believe that a government that can't even run a cash for clunkers program is going to run 1/7 of our u.s. economy? no, sir.

no. [applause] steve: that's what we said on this show friday. how can they do that? they went bankrupt. the federal government was in the used car business for four days, was supposed to run for four months and they went bankrupt. gretchen: and what's the answer? they're going back to the senate today for $2 billion more for cash for clunkers. so a lot of people are asking, hey, is this fortuitous about what's going to happen for health care? we start the program, we need more money and we go back to where we got it the first time. the only problem is, peter, you're eventually going to run out of cash. peter: you are going to run out of cash. at the town halls they're saying to you, steve, to you, gretchen, there is a dramatic sense of anger, of frustration and a real fear as to what's going to happen. and it's up to us over the next month to make a determination about what our future is. all americans. steve: yeah, absolutely. you know, it's one thing when lawmakers are there in

washington, d.c., where they do this kind of stuff, but when they go to their districts and they go to their home states and they start getting chewed on by the people who are going to be impacted, don't be surprised if there's not a change in attitude at the end of august. keep in mind, our members of congress and of the administration would not be subject as we learned from peter johnson from a half-hour ago, would not be subject to the same health care initiatives that we all would. gretchen: what's the prize? peter: whatever people's thoughts are, they have to go to foxnation.com. there you can get the emails and phone numbers of your congresspeople, of your senators. you need to call them, whether you are a republican or democrat or independent -- steve: sure. peter: whatever your views are, you have to call them and say, when are you going to be in my neighborhood answering my questions? i don't need you to go to the beach or to the lake or to the forest during this august. i need you to be talking to me because this is about me and my kids and my grandkids.

that's what it's about. they need to be here. gretchen: well, i'm with you here, peter. let's get to a phone call because she's channeling her inner biker chick. meghan mccain from sturges, north dakota. i guess we're not going to do headlines. steve: also, her husband disappeared on their honeymoon during a booze fest on a cruise ship. that woman reportedly getting married again. she registered for wine glasses. peter: and the big flip-flop. gretchen goes one-on-one with the first lady, laura bush, about the phrase the war on terror. it's an interview that you're only going to see, only going to see right here on "fox & friends." >> you get to see it. greta: all right. -- gretchen: all right. it just got the good housekeeping seal. you wanna know why? the full & thick collection really leaves the hair full.

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hour. an updade on a fox news alert that we have -- an update on a fox news alert that we have been telling you about. you are seeing people being brought into ambulances. that's where congressional airplane 128 landed after hitting turbulence. four seriously injured and 22 have some minor bumps and bruises. the flight was headed to houston from rio de janeiro. and another developing story. today, swedish diplomat stepping up efforts after americans being arrested in iran. this saying that iran could portray the hikers as spies to use them as bargaining chips with the united states. on friday, shane bougher, joshua fattal and sarah were hiking when they crossed the boarder into iran. a fourth hiker stayed behind because he was saying. shane bauer is a freelance

journalist based in the middle east. and sarah shourd is a teacher from california. joshua fattal is an environmental worker from oregon. gretchen: all right, peter, thanks a lot. last year during the presidential campaign, john mccain was in sturges, south dakota. his daughter, meghan, was with him. she said, i'm going there next year as well. meghan joins us from the 69th annual sturges moisture cycle rally. good morning. >> thank you so much for having me on this morning. gretchen: of course. you definitely look the part this morning. and you wrote an article before you arrived in sturgis. here's your first line. you've never been one to men's words. i'll be riding a harley with the very same bad asses with the people who helped reinvigorate my dad's campaign. what? >> yeah. i'll be riding this afternoon at the legends ride.

i had such an amazing time last year and it really resonated as totally my favorite campaign stop during the entire campaign. it's just great to be back and it's so gorgeous here. we went to mount rushmore yesterday and i'm glad to ride yesterday. gretchen: you don't ever men's words, do you? you get right to the point. >> no. i think that's why people like me. gretchen: well, i will agree with that. talk about the support you've seen in sturgis? this is african date obama had gone to germany and had 250,000 supporters there. your dad goes to sturgis and 150,000 bikers showed up. what did that mean to you? >> when then candidate obama went to germany, it was an image of germans rallying.

it was 150,000 bikers here. really old american. it reignited the campaign. i almost started crying on stage last year. i just felt so moved. the biker community was always so supportive of my family and still is. bikers for mccain was such an as mazing part of the campaign and one i became personally associated with. my parents are both excited. it's nice to be riding. i love riding motor skls. it's great to be here. -- motor cycles. it's great to be here. gretchen: if you'd stick around, we'd appreciate it. because we want to talk to you on the other side of the break. >> sure. gretchen: and meghan is going to talk about her father and the rest of her wide that's going to be going on today. and this man picked the wrong four women to mess around with. a cheating husband gets busted in the worse way with crazy glue. wait until you hear this one.

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gretchen: well, we're back with meghan mccain. and, meghan, you're going to be riding today. now, tell me, do you pick out your own motorcycle or how does this work? >> i'm riding with the founder of sturgis, a nice guy named rob. i'm going to be riding with him on his motorcycle. steve: terrific. let's talk a little bit about something that's going on in the news right now. i'm sure out in sturgis -- my sister has been a couple of times and had a great time out there. i'm sure they're talking about the cash for clunkers program. the house is going to the senate after the house approved another $2 billion. guys like your dad says this is

another government bailout and we should not be doing this. what do you think? you're a straight talker. >> yeah. obviously i'm a fiscal conservative and as a republican i agree with my father. it's interesting because i saw a sign that said south dakota cash for clunkers. obviously i agree with my father. i just -- you know, today is really not the day i want to talk about government issues and things going on but i agree with my father and i think the government needs to be more fiscally responsible. peter: what lesson do you think the bikers and maybe there will be a couple hundred thousand there, what lesson is there from the bikers? what have you learned from the bikers? >> i just love bikers' patriotism more than anything. they're really proud americans. they have flags flying, flag headbands. it's a great way to celebrate being american. a lot of people travel thousands of miles to get to sturgis, south dakota. i'm proud to be part of this in

any way. it's god's country. it's so beautiful here. in every possible way i'm honored to be here. toby keith is playing later tonight. it's a great party. peter: have you been to the badlands? it's the closest thing to being in outer space? >> it's just gorgeous. it's so much more beautiful than i thought. i think everyone should come visit south dakota at some point. it's such a gorgeous state. i flew in from manhattan. my god, it's gorgeous. gretchen: before you know it, the department of tourism in south dakota is going to be calling you. in fact, i hear your cell phone ringing right now, to be their next spokesperson. you have a book upcoming. you right for the daily beast. i can only imagine how hot this book will be. meghan mccain, have so much fun out there. >> thank you so much. gretchen: and hopefully you'll show the riding video.

steve: what is that great big buffalo chip sign? what is that talking about behind you? >> buffalo chip is basically the campground where everyone comes from and where the stage is and it's near the city of sturgis. steve: in other words, i'll meet you at the buffalo chip, is a place. interesting. peter: have you had a bisonburger yet? any bison burger? >> no. peter: you should. >> it's so ger just here. thank you so much. steve: straight ahead on our monday telecast, taxing the rich. you may not think it's a problem but what about the american dream? won't taxing the rich end to the word working harder. gretchen: cheating on your wife is not good. cheating on your wife with three woman is not good. how these women fought back, got arrested and in jail. peter: four police officers are in hot water for what they are caught doing on their own dash

cam.

steve: this is a fox news alert. we get right to the headlines. we've been telling you a story all this morning long. this is passengers of being taken to the hospital from the miami international airport. that's where continental 128 made an emergency landing this morning after hitting some very rough turbulence. 168 people onboard that flight,

four seriously injured. 22 apparently bumps and bruises. the flight was headed to houston from rio but diverted to the emergency -- for the emergency landing there in miami. peter: and michael jackson's legal affairs takes center stage in a los angeles court this morning. his estate will be discussed and the custody issue for his three kids should be finalized. his ex-wife, debbie rowe, will reportedly get visitation rights only. and the children will stay with their grandmother, catherine jackson. last night on "geraldo at large" talked about her son's death. >> how do you feel that this dr. conradt murray is apparently taking the fall for everything that happened? >> all i know is that my son is dead and i don't think he died of natural causes. something happened. i don't know what it was and i

can't say. peter: there's a british news report out this morning that an assistant to dr. murray gave jackson the shot that killed him. the son claims that an aide to dr. murray gave jackson the painkiller demerol after murray had already given him propofol, the anesthetic. gretchen: all right. the woman whose husband went missing on the cruise got married again. george smith disappeared in the middle of the night after partying. the two were heavily drinking and he did not see -- was not seen again. she received a $1 million settlement from the cruiseline. the lawyers are appealing that settlement because they believe he was murdered. steve: meanwhile, hundreds of suspects from gitmo could be heading to the united states of america. the obama administration floating a new plan to set up a

courtroom inside a prison complex on american soil. two maximum security facilities, one in kansas, one in michigan, are being considered. michigan congressman mike rogers is up in arms over the idea. he spoke out earlier on this here show. >> why you would introduce this problem into our state is crazy to me. i mean, what, for a few dollars? i'm not sure what we gain from it other than it brings all of the trouble that these folks bring with them to our neighborhoods. and i -- it's a lousy idea. steve: well, that lousy idea could happen soon. president obama says he wants to shut gitmo down before the end of the year. peter? peter: four women, one man, a legal battle is under way right now in wisconsin. after the women learned they were all seeing the same guy. the women, one of them was the man's wife, are accused of tying up the man in a hotel room and doing some maybe

permanent damage with krazy glue. they are each facing years, six years, in the slammer. but should they be facing that time? earlier on "fox & friends," a legal panel debated the issue. steve: you can yell at them and scream them but can't get physically abusive. >> six years in jail? >> six years is a lot of time. now in wisconsin, arthur, you remember, maybe you know this or not, but it is a felony to commit adultery in wisconsin. so this man actually could be prosecuted himself. peter: the victim was treated for his injuries and is apparently recovering. gretchen: well, jude law says i want a paternity test. the actor wants to make sure that 24-year-old model samantha burke is in fact carrying his child. law, apparently met burke, while filming a movie. her lawyer says she wants a lump sum of money from jude law and a cut of his future earnings. steve: dude law. meanwhile, she played marianne

on "gilligan's island" now she's auctioning stuff off the comedy. fans flocked to idaho for her sale. here is wells explaining why she niss that the show had so many of us as fans. >> one of the reasons i think is popular, no time. it's a humor that's easily translateable. it's slap stick. you didn't know who a monica lewinsky was to get the show. steve: she looks pretty much the same. she is 71 years old. she's surprised how much stuff from the show she had collected over the years. a garage sale from an island. gretchen: she looks fabulous. she had been on the show many times. i met laura bush at a change of command ceremony for a submarine near and dear to her heart. one of the reasons is because it's called the u.s.s. texas. right now it's in goten, connecticut. it's about to go to pearl

hashor. so we talked about her -- harbor. so we talked about her pride in our military and their families and the war on terror. here's the first part of our time together. you have such an affinity about the u.s.s. texas. >> i'm the sponsor of the u.s.s. texas. it's a nuclear sub. you can see it here behind me. when george was governor of texas i was invited to be the sponsor. of course when i was invited i had no idea that george would end up being the commander in chief and that i would have the chance to get to know the people of the united states military like i did. our new commander is waiting over here. we'll actually walk on top of the submarine. we'll be on top of it in just a second. >> gretchen: here he is. >> i want you to meet the new commander. >> it's a pleasure to meet you. welcome aboard. >> bob was one of the military aides at the white house when we lived there to president bush. so he traveled with us a lot

because there is always a military aide with the president of the united states all the time. and so he -- and then he also went with me to afghanistan when i went to afghanistan. and besides that, and not in his role as military aide, but his role as a mountain biker, he's a mountain biker with president bush. gretchen: i know that military and troops and their families, it was such an important thing to you and the president. i remember seeing him tear up so many times when he would discuss the families and their service to this country. i know you feel the same way. >> well, i really do. and i had the chance to get to know our military so well. and to really deepen my respect and admiration to the people who serve. and not just for the people who serve but for their families. gretchen: interestingly enough, from the news in the last few days, the whole title of war on terror, which is what president bush made sure that all the world knew about, was changed

to a different title. and now the obama administration is back to calling it the war on terror. do you find that ironic? >> well, slightly ironic i guess. i think you know -- and this is one of the things that the president of the united states is most charged with and that is protecting our country. and certainly george knew that and president obama knows that i know as well. but also the other role of the president of the united states is the commander in chief of our military. and the commander in chief learns if me don't know before they get there how important our military is. to the well-being of the united states and how very, very fortunate we are as a country that so many really distinguished men and women choose to serve. i'm so proud of the crew of the texas and proud of their wives and their children and their mothers and dads who miss them when they're gone. gretchen: and we all know how much they are missed when they are serving our nation.

we mentioned before, especially those who go on those subs, really are out of touch with their family members so much more than the other soldiers. interestingly enough, the commander of in subnow, the u.s.s. texas, you heard her say that he likes to mountain bike with president bush. but i did ask who usually wins, can you guess who wins? steve: yes. gretchen: president bush. he beats that young whippersnapper. in his 60's he's still quite in shape as is mrs. bush. coming up tomorrow, much more with laura bush, including her thoughts on women in higher office. how important is it to you to see a woman as vice president or president? >> well, i would love to see that in my lifetime. you know, i hope that's what we see and i hope it's a republican woman. gretchen: she got that in. of course, that would be her wish. we were discussing how pivotal it was in the last election cycle where you had hillary clinton and sarah palin on both sides.

peter: very smart woman. she would never run. steve: rather in an being here in the air-conditioned studio, out in the sub. peter: out in goten. gretchen: it was a little windy and rainy but mrs. bush faired so much better. thank you so much for doing that. steve: how is the federal government planning to pay for a massive health care overhaul? by taxing the rich, of course. but what is wrong with success? why putting pressure on the wealthy could spell the end of the american dream. we're going to talk about that. peter: and instead of enforcing the law, these cops may have broken it. caught on camera blatantly abusing their power but by perhaps scheming to fake a car crash and then frame the driver? that woman, who they tried to allegedly frame, joins us in 10 minutes. >> as far as i'm concerned, i was worried she was in the left-hand lane. you are smart. accumulate 10 nights and get a night free anywhere.

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peter: we're back at 43 minutes after the hour. here are your quick headlines. schools are scrambling to try to deal with the swine flu before students get back to class. 125 million doses of h-1-n-1 vaccine are being developed. but that won't be developed until late october. and most schools start in september. some in august. among the actions being taken in maryland, state officials are trying to decide under what conditions they would shut down schools and how to isolate six students in case of an outbreak. -- sick students in case of an outbreak. and you can find a lot of travel bargains right now but not exactly at disney world. the happiest place on earth just raised the price. up four bucks to $79 each. better buy a multiday pass. steve: now, that's goofy. the top 1% of american taxpayers now bearing a bigger burden than the bottom 95%. with the tax hikes currently on

the table, could the health care overhaul stifle productivity in the united states? gretchen: we're joined by former pollster for jimmy carter, pat. good morning now, pat. >> good morning, gretchen. how are you doing? gretchen: on the heels of booking this segment to talk about the figures that steve just gave, three of president obama's treasury department spokespeople went on the shows yesterday and talked about a middle-class tax hike. do you believe them? do you take them at their word? is it going to happen? >> oh, i think the fact that they didn't say they were not is an indication that they are. when they say we're going to -- we're all going to have to do something or we're going to do what's necessary, grab your wallets. look, the point is the top 1% have the largest share of income in history at the same time the -- you now, the not so worldwide phenomenon.

you could tax all of the assets of all of the people who have over $1 million in this country, the top 1%, and you wouldn't have -- you wouldn't even begin to dent the deficit we have in this country. steve: exactly right. plus, you know, there comes a point where if you completely soak the rich, eventually the rich are going to say, you know what, i could operate this out of ireland or i could go to the camen islands or someplace else and i am going to get the heck out of here. >> well, that's true. you know, in states like california and new jersey and new york where people are the top income earners are leaving the states because of taxes, but when you have a policy that gives 5,000 people who at nine tarp banks who lost $1 billion you have to wonder what they're doing. it's a dill -- gretchen: here's the other figure that makes me scratch my

head a little bit. the fact that 40% of the country does not pay any tax. >> that's right. well, part of our policy -- remember, we're doing this on both ends. 40% don't pay. that's income taxes. they may local tax, social security. the point is that we're narrowing the tax base even if we're not raising the rates. but if we raise the rates, it has an effect. but the problem with the country's -- the problem that the country is upset about is the health care. whether you believe it's good or bad, but the point is i think most americans believe and they're upset about this is what it's doing to the deficit in the future. steve: pat, it's getting bigger and bigger by the day. >> it's going -- steve: the u.s. senate is going to say, ok, finally we did something that worked. let's give some more money to the cash for clunkers program which is a -- it's problematic on many different levels but it

just adds to the deficit. >> see, we are printing money to put cheese in front of people and say, take this. gretchen: exactly. >> that's not real demand out there. gretchen: right. >> this is -- you know, if you're going to waste money, why don't you give it to people as tax breaks? gretchen: that's essentially what that program is, pat. >> people are running oft of unemployment benefits -- running out of unemployment benefits. steve: why do they have to destroy a quarter of a million cars in some example? give them to charity, give them to a teenager. >> you would think in the middle of a recession which is every place but washington, d.c., apparently, that there are people who need those cars. gretchen: but you know what, pat -- >> going to destroy them -- gretchen: it was more important to do a green effort. or whatever it is. somebody gets to trade in a car that makes 12 miles per gallon to something that's 10. i'm trying to figure out how

that helps. >> what the american people believe and is common sense which is totally lacking common sense which is their government. whether it's democrats or republicans, all of them together. that's why people are in an outrage. you have seven senators out of 100 have even agreed that they will read the health care bill that they're supposed to vote on next month. all right, seven. but that basically is an attitude of, hey, you peasants, leave us alone. steve: let's have only those seven vote on it then. >> yeah. steve: pat caddell, former pollster for jimmy carter, thank you for joining us, from charleston. gretchen: our next guest allegedly framed by the police during a traffic stop, a plot to ram her car and blame her for the accident. we caught on the own cop's dash cam. steve: meanwhile, we have a dash cam upstairs. there's bill. >> we have a lot of questions this morning as the white house about to break a major campaign

pledge. will gitmo move to michigan? what happened in the skies over miami that sent numerous people to the hospital this morning? and will the government make health care decisions for you once you reach the age of 65? we'll debate that topic with two doctors. great show coming up, guys. see you in 10 minutes. . . .

>> a fifth policeman in hollywood, florida, under investigation after-cambodia surfaced last week. perhaps the cop was scheming to take a crash reports and frame the driver involved? take a look. watch the tape. >> he was drunk, here is what it is.

>> alexandra vias is the woman in the video that officers were trying to blame. she joins us along with her attorney. what happened on that day in february? you were driving with a cat in the car. it jumped out. you pulled the car over and were out of the car at the time that the police vehicle hit you in the rear. what happened after that? >> that is when i was met by officer presley. i asked him if he could give me a couple of minutes to save the

cat and he wanted me to join him. that is when i see the damage done by car. >> you are saying that they made a perversion as to how the accident happened and that it was not your fault, it was their fault. correct? >> yes. >> you were drinking that night, correct? >> a little bit. >> they gave a breathalyzer? what did it show? >> at the station it showed that they were over the legal limit, but the problem is that it was administered by the officer that was the ringleader of the scheme to accuse my client of causing the accident. >> what was she accused of? an actual crime? >> she was charged with dui and dui property damage, and enhanced penalty. two counts for allegedly causing the accident. >> you are not questioning the fact that you were drinking and driving? >> no. >> you were saying that you are

not driving at the time of the accident and that it was entirely their fault and that you should not be charged with dui property damage, correct? because you did not cause any? >> the hazards were flashing. >> in the state of florida, if you are not in the vehicle they have to -- they cannot charge you. >> you have to be behind the wheel. >> are you planning on selling these police officers? >> first off, all of the criminal charges have been dropped in this case. >> do you plan on suing these police officers? is that the goal? yes or no? >> yes. >> thank you so much. more "fox & friends" in two minutes.

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