bill: i am looking forward to more lives tomorrow. megyn: some of our viewers said maybe the men were more honest in answering that question. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- jon: we start with a fox news alert on the future of the kind of health care you get. after months of intense negotiations, the senate finance committee chairman is releasing his health care reform good morning. democratic finance committee chairman max baucus is introducing what he calls the america's health future act. it is an $856 billion package that would require each american to buy health insurance or pay a fee. but it does not include the controversial public option that would create a government-run insurance program.

senator baucus wrote on today's "wall street journal" saying this. our chief political correspondent, carl cameron, is live on capitol hill. nobody can and decipher this better. is this his bill or his committee's bill? >> well, it is not a bill by any stretch of the imagination yet. we have a lot of paperwork that senator baucus would like to have turned into a bill by his committee. the news conference will happen today in the senate finance committee. he will be here in an hour to talk about it. for months, he hoped he would be flanked by his so-called gang of six. but he will be solo because none of the members of the senate finance committee are prepared to sign onto this. they will spend the next week trying to turn it into a bill. it is fairly complex. here's what we can tell you. it is $856 billion. that is considerably less than

the a original number. it is mandatory individual insurance with a fine if you do not comply of up to $3,800. the government would run what is called a web-based insurance exchange to standardize premiums and cost information. there would be a choice of a government initiated non-profit co-op which means consumer owned and oriented plans. $349 billion in new taxes and fees, including a 35% tax on top shelf programs. the rea $6 billion flat fee for the insurance industry. this would stop private insurance companies from canceling coverage for existing conditions. there is a big concern that some of the issues that were offered up by democrats to win republican votes are not really in here. one example is medical

malpractice reform. senator baucus has been insisting that that be in there. it turned out it will not be in there. he says there would be a non- binding resolution -- resolution that creates an as over to the to the medical malpractice reform. that is before cry from the actual reform that republicans expected to be getting. jon: at the capital, are you hearing any opposition? >> the white house is not going to oppose anything. they want to continue the momentum going. max baucus of hopes that by letting this out there and increasing the pressure on democrats and republicans, he can get more momentum and get something on the senate floor. the obama administration said the deadline for a minute -- for legislation was supposed to be before the august recess. there is a reason they pushed that deadline. they know the calendar is busy during the fall with the budgetary problems. in this case, the country is

tremendously engaged in an intense debate. time is running out. there is very little progress. the chairman wanted to be unveiling a bipartisan bill. instead, it is his own proposal just to kind of restart things. jon: the white house might not be screaming, but we discussed this statement in from mitch mcconnell, the leader of the republicans in the senate. is this the person proposal cut medicare by nearly a half trillion dollars and up the massive tax burden on families and small businesses. it is another $1 trillion program. only in washington with any one thing that makes sense, especially in this economy. does not tell what the republicans like this. >> a short time ago, senator bill nelson of florida went to the floor of the senate and a promised to put forth amendments to try and restore some of the cuts to medicare democrats are worried about the cuts to medicare to the republicans are worried about the cuts in medicare.

jon: carl cameron, we will let you get back to looking into the details. jane: we have new surveillance video from that terror raid in queens, new york earlier this week. an airport shuttle driver from denver was reportedly at the center of these raids. he denies that he is done anything wrong. they say that it is possible he is associated with a muslim family detained in the queens raid on monday. here is a picture of this man. he denies he is done anything wrong. he says he's pulled over in a traffic stop in new york and his computer was searched. he was allowed to go home to colorado the government is still looking for a bomb-making materials. the nypd is analyzing the evidence is collected during the raids. jon: now to iraq and some quick work by u.s. and iraqi forces. they arrested three militants in connection with the deadly rocket attack in the green zone.

it happened about this time yesterday as the vice president was spending the night there. today, joe biden is meeting with the iraqi prime minister and sunni leaders, hoping to smooth out political differences as u.s. troops prepared to withdraw from that country. jane: in august, more cars and clothing and other goods were made. industry projects -- industrial production rose more than expected. we have jenna lee with more. >> we're not seeing much reaction to the better than expected economic data. the cash for clunkers program is a factor in any economic data from august. if you look at industrial production, which was higher than expected, and that has to do with things we make in manufacturing or mining. there was a big jump in industrial production for a second month in a row. we had assembly for cars and trucks way higher than in

previous month. they were making and preparing for the cash for clunkers program. if you would get consumer prices, which is also something investors are watching today, that is what you and i pay for goods in stores, and those prices were also a little bit higher. if nothing to worry about because we're still down. one of the areas we actually saw prices decline was for new sales of cars and trucks. that makes sense because of the cash for clunkers program. the big key word here is sustainability. that program ended on august 25. and so will some of the better than expected economic data actually continue for the next few months? we will talk more on some of the incentive programs in about 20 minutes when it comes to the housing market. jane: we will see you then. jon: there are some big new developments in connection with the murder of the yale registry,

annie le. police are said to hold a news conference hours from now. a person of interest was briefly taken into custody. he is raymond clark, a lab technician who worked in that building where the body was found on what would have been her wedding day. police picked up clark at his connecticut -- at his connecticut apartment last night. they released him after taking dna samples. rick leventhal is live at the new haven police department. why was this man arrested and then released? >> they took him into custody to achieve the goal of obtaining dna evidence. they said they would not arrest him unless he did not cooperate with the search warrant. and he did. they brought him in and got the dna evidence to compare that to the 150 pieces of physical evidence recovered from the lab building where annie le was murdered. they've been released him, but i guarantee there watching him closely.

we're streaming live from outside his home. we may not see him show back up to his connecticut apartment. there are rumors that he had already fled before police took him into custody last night. the police chief talked about that last night. >> we have known where he was that all along. he was exactly where he was expected to be. we served the search warrants. we have always known where he was that. >> was the home when you went there? >> yes, he cooperated, and we took him into custody we have been with him since we took this case over. >> let, police are keeping a close eye on this man as the process that evidence, which should take between 24 and 72 hours. jon: is there any reaction from annie le's family about these developments? >> we heard a spokesperson from

the family last night before agreement clark was taken into custody, and it wanted to thank the committee, the nation, and law enforcement. this family must be feeling some relief today. jon: is anybody talking about a possible motive? >> there is, and it is a little bizarre. we heard this from "the new york daily news." raymond clark was allegedly upset with the way that annie le was treating the lab mice. he cares deeply about the animals. there may have been some e- mails back and forth about the procedures with the animals. that being a motive seems remarkable. police have not confirmed dead, but that is what we are hearing today. jon: that is a very sad and strange case. thank you. jane: news on what is known as the swine flu, h1n1.

the fda has approved a vaccine, and people considered at risk will be the first in line to get this shot. when will it be available? jonathan serrie is in our atlanta bureau. >> a limited number of doses may be available early next month, but the bulk of the doses are expected sometime in mid- october, somewhere between 45 million doses of a 52 million doses. jane: how do they ensure the people in the high risk groups get the vaccine first? >> it is hard to speculate on what the demand will be. if there is an initial crunch and needs to be some sort of rationing it will be up to state governments and local municipalities to determine how that is done. one way they can do is to steer the vaccine to certain providers. you can give it to schools to ensure that only children did the vaccine.

you can give it to obstetricians to ensure that mostly pregnant women are getting the vaccine. but a lot of it is going to be up to personal responsibility. healthy people and people not in those high risk groups stepping aside and letting those people in the high risk groups to the front of the line. jane: will there be enough to go around? >> not everyone will get it right in the middle of october. but after the initial shipment, every week vaccine makers are expected to produce 20 million doses throughout the rest of the year. health officials say everyone who wants the vaccine will likely get it eventually. jane: jonathan serrie, thank you. researchers are saying that this h1n1 could be far more powerful than the regular seasonal flu. we will tell you what they say it does to your lungs and why it could be so deadly. will the vaccine be enough to prevent a series of brick? dr. marc siegel will be here in

a few minutes to explain. jon: you cannot even bring a shampoo bottle on board an airplane. but now, nine airline workers are accused in a smuggling ring that apparently went on for 10 years, authorities said. what they got past security that could put the behind bars for a long time and how it all might have happened, next. jane: also, who does not love a good car chase? this is out of los angeles. the driver takes a licking but keeps on going. we will show you the ending. there are many "ifs" in you family's life.

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discover gives you a cash back bonus on every single purchase. what you do with it is up to you. what will you get back with your cash back? it pays to discover. jane: it is time for some amazing video. it was after dark when los angeles police began chasing a suspect in a stolen car. they used what is called a hit maneuver several times on interstate 405. you can see sparks flying. several tires blew out.

the man kept on going. finally, the driver knows it is over. he is not going anywhere except to jail. he eventually gets out with his hands up and gets facedown on the ground. another car chase comes to an end. jon: 9 american airlines workers suspected of stabbing a lot more than suitcases -- staffing a lot more into suitcases than clothing. they are among 23 people arrested for smuggling millions of dollars worth of cocaine from flights in and out of puerto rico. they say the smuggling ring has been operating since 1999. let's talk about what the u.s. attorney for the district of puert o rico. where did the cocaine come from? >> one man began operating in or

about 1999. he recruited and organized a group of american airlines employees to ensure the suitcases were smuggled into american airlines commercial aircraft. and the suitcases would then be transported to new jersey, orlando, or miami. jon: so they would apparently come into san juan from places like colombia, and then to the cocaine would get shipped to various places within the u.s. >> yes, exactly. the shipping. is the midpoint between south american countries and the northern united states. the drugs can from venezuela or any other drugs source country. there were utilizing this method to transport it. jon: 9,000 kilos of cocaine is an awful lot. people are wondering why they cannot take a shampoo bottle

aboard an airplane and people are smuggling this amount of cocaine over 10 years. >> well, these suitcases did not travel the usual route. they were boarded in the cargo area by the american airlines employees. jon: how was it uncovered, a drug-sniffing dog or something? >> i cannot leave bill anything being investigated. -- i cannot reveal anything being investigated. but we conducted the arrests yesterday. jon: they are facing long prison terms if convicted. thank you. jane: the controversial community group acorn is on fire after more undercover videos are released. some lawmakers are calling for the department of justice to investigate this group two others are asking if this is the beginning of the end.

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jane: now to the latest on the controversial community group known as acorn. between the recent arrests of from some members for a voter fraud and now these undercover video showing questionable behavior from some of its workers bitter summer calling for the justice to permit to investigate this organization. the senate wants to cut off its housing funding. the census bureau wants to sever ties. where is this headed? we had a congressman from north carolina, ranking member on the said committee for oversight on this. some of your colleagues are asking for this investigation. do you agree with that and why? >> absolutely. if you look at acorn's activities of the last number of

years, they have been indicted in nevada for committing a voter fraud. individuals that have worked for acorn have been indicted for similar offenses. many of us believe that acorn is a criminal enterprise that has received $53 million worth of federal government funds and a potentially millions more in stimulus funds just this year. it is important we research this to see if an organization that is correct is receiving taxpayer dollars. jane: seven senators on the other side of the hill voted against the ban for housing funding for acorn. a lot of them said that this group actually does good work and these were just bad seeds on the videotape. what do you think? >> i think we are seeing is example after example after these videos of actions many of us believe acorn has been perpetrating for years. if you look at the senate votes in march, 53 senators said no

for cutting off funding for acorn. yet, yesterday, 83 voted to cut off funding so you have had a huge switch. the census bureau, a couple months ago, said it would not disassociate themselves from acorn. then they conceded after numerous request to not give acorn any federal funds. finally, on friday, they said it would not be a partner with them and use the term a census in any of the reforms or letters. it has been a huge is sitting. here for acorn -- it has been a huge stitipping point here for acorn. people be reviewing their relationship with this organization. megyn: this was said, i do not think progressives will sit back

and let this gain momentum. they say this group has been a target of conservatives. he says progressives will be fighting back. do you see that in the future? >> sure. this is a critic of federal taxpayer dollars in the name of helping for housing. yet, you have progressive groups saying that they are one of their brethren. the have been involved in campaigns, including the president's campaign. they look to be very political, very liberal, and their liberal brethren will rally around them. if there liberal and involved in campaigns, why should they receive taxpayer dollars? jane: are you saying you think this is the beginning of the end for this group and there will be no more acorn in the future or do you think we are in for a fight? >> i think we are in for a fight. but the american people are seeing with this organization is about, and we have it on video.

it will make politicians questioned the relationship and funding of an organization that is this correct. jane: thank you for your time. jon: provocative words from a former president about race relations. what jimmy carter is saying now about president obama and the heated health care debate. also, first-time homebuyers could soon learned and could soon lose an attractive tax credit. what happens to the housing market is this incentive goes away? and we're looking at breaking news in california. police are investigating the possibility that two children have been stabbed in their home. the assailant -- harris faulkner is working it from the news desk.

jon: there is a report of and very strange and sad stabbing in orange county, calif. two children are the victims. >> this is just coming in. this is in the westminster, california which is in orange county. two kids, aged 3 and 5, report and the stabbed by their mother, and then she stabs herself at this orange county home. that is according to the police commander. if all three are the hospital right now. one of three children has block -- non-life-threatening

wounds. the other is reportedly in critical condition i do not know the condition of the mother. apparently, they have taken out several knives from the home. oddly enough, police were prompted by 911 calls. we do not know the mother made those calls or somebody else was inside the home. maybe even one of the little ones did. we do not know which child is in critical condition we know that this is a heartbreaking report coming out of california or three people were stabbed, two of them children. we're still trying to learn what might have prompted the attack among these family members. as we learn more, we will keep everybody up to date. >jintao we are waiting to hear from the senate finance committee chairman, max baucus. he will be holding a news conference on his proposal to reform health care in this country. he will not be joined by anybody else in this group called the gang of six, a bipartisan group

on his committee. some say they're still waiting to see the specific language. he cannot get everybody on board for today. baucus has been working for months to try to finalize some sort of bipartisan proposal. he said today that this plan would cost $856 billion over 10 years. it does require all americans to purchase health care or did health care in some fashion or pay a fine. baucus says he's holding up hope that some republicans will support the plan when they end up voting on this draft next week. he is also in need of democratic support as well. jon: the house of representatives passes a resolution of disapproval against the south carolina congressman, joe wilson. he shouted " -- he shouted "you lie" that the president. jimmy carter says he thinks racism is behind the outburst.

he is concerned that what he calls the racist attitude displayed as some of the public opposition to health care reform. >> an overwhelming portion of the demonstrated animosity toward president barack obama is based on the fact that he is a black man. and i think it has bubbled up to the surface because of a belief among many white people, not just in the south but around the country, that african-americans are not qualified to lead this great country. jon: joining us now to talk about that is the chairman of the republican national committee, michael steele. you have seen some racism in your life. is this an example of racism? >> it is not. i think the president, with all due respect, is plain wrong and, quite frankly, ignorant. if he thinks we heard in that chamber that evening stems from racism, that is unnecessary. i think it colors, if you look,

this debate on health care in a very unfortunate way. it diminishes real instances of racism that still exist in this country. if i call you a liar, jon, as a black man, am i a racist now? is this what the party wants us to engage in when we want to have a civil dialogue? people get heated and have passions about certain issues. but i do not think -- granted, it was wrong. the congressmen knew it was wrong to say. but that was not coming from racism. i do not know if jimmy carter has seen racism firsthand, but this does not meet that standard. i think the president of the united states, mr. barack obama, now has an opportunity to shut this part of the conversation down because they think it leads to unfortunate conclusions. if we're going to be having a

conversation on health care and energy policy, we do not want to be tinted by race. the president has an opportunity to correct president carter and to move us beyond this particular ugly spots. jon: you have said house democrats are guilty of " standing upon receipt." what do you mean by that? -- you have said house democrats are guilty of "stunning hypocrisy." >> we have seen the tapes of members of the democratic party during the bush years going to the well of the house floor to call the president a liar. yes, the president was not standing in front of them, but they used those words in the house. is it less offensive of the president is not there? calling the president a liar in

his presence are outside of his presence, does it make a difference? you have this one incident, and we're going to blow it up to a national conversation, which is now been tainted by president carter with racism. i think what we see here is another part of destruction by leadership on the left that has an agenda that they're trying to get through, knowing that they have run into problems, and now they want the country to talk about this. they're trying to color if you will, this conversation in which it is unfortunate. i do not appreciate where the leadership wants to go with this bill does have a debate on health care. but let's not handle it this way. -- let's have a debate on health care. jon: he did apologize. the president accepted the apology. the house review carries no real

weight. there's no penalty. it is just an exercise in -- i do not know. >> it is an exercise in nothing. it means nothing. there were no penalties and no consequences. we have been asking why we're doing this. we are engaging in a debate. if the congressman had not gone to the president and vice president and apologized personally and talked with them, that would be one thing. but that happened, and the president and vice-president both accept the apology. i think that is enough. i think this is showboating of the leadership, in the house in particular. i think it got stoked up by some members wanted to drive this particular engine because i think it is unfortunate. the other part i find somewhat hypocritical is that you're going to pull congressman wilson to the chair and rebuke him when

you have democrats setting up ways and means having not paid their taxes and going against the rules of decorum. there seems to be so much of bridges indignation from nancy pull it -- from into policy and steny hoyer over this. ask why they're not paying their federal taxes. i find that a greater offense and calling the president a liar. so the hypocrisy here is enough and needs to stop of the ridicule of mr. wilson as a racist is out of place and inappropriate. i think leaders like president carter need to get a reality check. if he wants to know what racism is, come and take a walk in my shoes for a day. i will show you what it is all about. he needs to get off of this now. i am calling on president obama to help the nation move beyond this. i do not think the president agrees with the characterization

of mr. wilson's comments. he has a chance to step up now and move us beyond this. jon: michael steele, thank you. jane: a pitched battle over efforts to fight the taliban but not in afghanistan. we're talking about capitol hill. house democrats to block president bush to get our troops out of iraq are now aiming their anti-war message to president obama. james rosen is on this story. how tough a battle does the president have on his hands here at home and maintaining support for the war in afghanistan? >> the white house knows it has a problem. it has dispatched a group of officials to brief lawmakers on capitol hill. as these become a way -- they are presenting the metrics the white house is using to define success in the afghan theater. the problem of maintaining support for the afghan war for the white house goes beyond the beltway.

it is evenly split upon americans. only 25% of americans support the call for more troops issued by the chairman of the joint chiefs of staff. 17,000 american troops will be dispatched to afghanistan by the end of the year. another 4,000 trainers to bring us to overall levels of 68,000 by the end of the year. the chairman of the joint chiefs is requesting more troops. this is taking place against the backdrop of mounting casualties there. jane: it seems the president may find is more forceful and supporters are not what you'd call this natural political allies. >> yes, strange bedfellows on capitol hill. you can see this split acutely just as we look of the senate armed services committee with the chairman, democrat of michigan. he declared his opposition to this call for the appointment -- for the deployment of more

forces. senator john mccain has endorsed the call for more troops. we spoke with one veteran of the national security council's legislative affairs operation under president bush. he offered counsel to the current president. >> it seems like he will have issues sustaining support within his own party. he should reach out to the republicans. it seems like the republicans are eager to support president obama on his afghanistan strategy. >> we will have more on the president's quest for congressional support to the afghan war at 6:00 p.m. eastern tonight. jon: for the first time, we're learning how high value terror suspects will be interrogated in the future. with the fbi director is saying about the process now. that is next. are you receiving a payout from a legal settlement

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this $8,000 credit for first- time home buyers has been a good shot in the arm for the housing industry. it is set to expire at the end of november, but not without a fight from some people want to keep it going. is that a good idea? >> let's let the foundation. today, we found of the mortgage applications are the highest since june. so there's a lot of enthusiasm in the market to get out there and good shopping before this incident expires on november 30. that is what the national association for realtors want to continue this incentive. they want to continue to see this enthusiasm to go out and buy a new home. the government has put aside money to fund this incentive. the government thinks that we're going to see about $50 billion go to this program, twice the amount that we thought was going to be put towards this incentive. it looks like it is being more successful than we thought. but the question of continuing it is something else. a couple variables enter into the question of whether we

should do that. in order for the housing market to recover, you need the credit markets to loosen up because mortgage applications are one thing, but to get that mortgage confirmed is completely different. some people say that we're pushing up new home buyers just look for the cash for clunkers program, and you know that when you buy a new home, you're not going to turn around and try to buy another one in a year. something else that we're not seeing here is that although we are seeing more people looking for homes, we're not seeing furniture sales go up. this incentive is supposed to work in two ways. one is to get people into the housing market. the other thing is to use that $8,000 to buy new furniture and get people spending again. just to leave everyone with this final thought, when we think about a tax incentive, it is easy to think about it like it is free money. but this is essentially like taxpayers paying each other to go out and go shopping. that $8,000 is taxpayer money.

the just as it would be with a friend, those funds tend to run out, because you have to decide if you're going to continue to loan money to your friend or if you're going to feed your family. jane: thank you. jon: take a live look at capitol hill. there is a hearing under way with profound issues at stake. after the controversy over waterboarding, just imagine -- if we caught osama bin laden right now, how would he be treated? what kind of interrogation could he expect? the fbi director is outlining how high value terror suspects will be interrogated in the future. catherine herridge is live in washington. what have we learned? >> this is the first time someone senior then the government has explained how the high value interrogation group will work with the fbi. the fbi director said that it would have leadership, and he

says that the cia would be in a deputy function in that group. we're hearing that the national security council is that the white house, and this is significant, will have the final say on the priority is in each case, whether it is the gathering of information or whether it is a federal prosecution. the fbi director said he was considering methods that go outside the army field manual. president obama has been very firm that interrogations' in the future can only use the 16 in the army field manual. but the fbi director wants to explore other options outside of that manual. the real tension at the hearing was over aggrandizing -- br mirandizing overseas in the

shifting toward to a law- enforcement mode. jane: if you have not been paying attention to the swine flu, this should do it. researchers are saying it is now more dangerous to your lungs than the regular flu. it fills them with flu. you basically drown or suffocate. when is that vaccine coming? dr. marc siegel is the next. . (announcer) time brings new wisdom new aches and pains, ...and new questions about which pain reliever is right for your body. tylenol 8 hour works with your body, with one layer that dissolves quickly... ...one layer that lasts all day ...and no layers that irritate your stomach the way that ibuprofen can. it's tough on your body pain. not on your body.

jane: 0 alarming new details about how powerful and differ in the h1n1 virus is from the regular seasonal flu virus. doctors from the cdc say that of countries from people who have died from the swine flu that they had deep infections in their lungs. the doctor says it is like the avian flu, on steroids. dr. mark siegel is with us.

i want to read this description because it was pretty startling. your lungs are filled with fluid and leaves the patient gasping for breath. basically, you suffocate. >> that sounds pretty ominous, and that is keeping with studies that have been done recently with animals. this is only in people who had very severe reactions to the virus, and that means most people with heart disease, liver disease, and obese people, especially. to protect those most at risk, we have to protect everyone, and that is why the vaccine is important, but for most people, the vaccine -- the virus is pretty mild. jane: asthma was considered a

risk factor, and a lot of kids have that. >> this virus focuses on lawns. most people with breathing problems will have complicated problems. if a child has asthma, then it could spread around the family. jane: now that the fda has approved the vaccine, what does that mean for me? how do i get it, should my kids, my mother did it first? >> first of all, it has been approved and it should be around in a few weeks. third, it looks like one shot will be enough for adults and kids over the age of nine. i agree, we should be giving in to children first, pregnant women, those with chronic conditions, and health care workers. we are going to have a lot of it because we thought we would need two doses, so forget about the

fear of the vaccine. in the meantime, we have anti- marla drugs like tamiflu -- anti-viral drugs like tamiflu. jane: and do you hear that, jon? he was coughing a bit. >> i am going to take a look at you. i do not think you have the flu, but i will take a look jon: you noticed i was not here on monday. in california, there is a new search under way in the backyard of this man, philip perino. -- garrido. he is accused of holding jaycee

lee dugard captive for 18 years. police are now searching for clues related to two cold cases that occurred in the 1980's we all have confidence

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[captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- jane, the man who some say could hold the key to your health care is expected to lay out his version of reform. max baucus will be doing it without the support of any other members of this bipartisan group. jon: police are searching the yard of the man charged with kidnapping jaycee lee dugard. they're looking for evidence that could connect phillip garrido with two disappearance'' of gross from the 1980's. jane: and a close encounter with some heavily-armed robbers. jon: harris faulkner has an update on this scary story of a

stabbing in orange county, california. harris: the details are even more disturbing. now we know which child is on life support after what has happened here in california. these are live pictures. police have responded to a home in westminster where a five-year old and a three-year old have been stabbed. we are hearing that the mother was covered in blood when police officers showed up. she was holding the 3 year old -- three-year old, also covered in blood. the five-year old was found in another room. police are saying that the mother sent to each of the

children and then herself. -- and each of the children and then herself. 911 calls said the officers to the home just one hour ago, but we do not know who placed a phone call. such a heartbreaker. john, that is awful. thank you. -- jon: thank you. jane: after months of debate, the chairman of the senate finance committee, max baucus, will be holding a news conference on his proposal. senator baucus will be standing alone without any other members of his bipartisan group, the gang of six. carl cameron, do we know the details? >> you will give a great deal of the details, but this is only

his draft proposal for legislation. i want to paint a picture for you -- within last hour, the senator from iowa, charles grassley, who had been working with max baucus on this proposal, came out of the office and literally sprinted past cameras, reporters and everyone, down the stairs, running from any opportunity to talk about max baucus' proposal. nothing symbolic, he literally ran. here is what max baucus said earlier. >> it is a big day. many steps forward. i look forward to giving you some of the details this afternoon. i feel good about moving forward. >> he will be here in about 45 minutes to begin talking about

it. he has some explaining to. -- to do. jane: mike and seencee has saidt he had hoped for more progress. >> this is the beginning of the legislative process that has all lot of republican help. charles grassley has a lot of components and the measure that he proposed, so there was some progress, but it is simply not done. he said he is optimistic there can be some amendments in the future, but when senator baucus, into talk about health care reform, there are not any changes yet, and as it stands, it remained bipartisan opposition.

ben nelson is concerned about the cuts to medicare. this morning he said he would take steps to try to change this bill because as if it is, he does not want to support it. >> hundreds of thousands of seniors who did not conceive of medicare advantage, but who have come to rely on it, this senator is going to offer an amendment that would shield them from those benefit cuts for existing senior citizens on medicare. >> tuff stuff when a democrat says that you need to amend the proposal, even before it is released. jane: thank you. chasing down whoever is making news.

we will be waiting with you for the senator to step to the microphone. jon: apparently president obama is deciding not to decide we are getting word -- to decide. we are getting word that he said we need to get the afghanistan strategy right before determining whether more troops should be sent there. you might remember, mike mullen has been pushing for more troops on the ground. stanley mcchrystal also says he needs more forces. the president is saying not yet. he will not make a decision might now on whether or not afghanistan will see more troops. we should see the president makes some of those comments from the white house in a couple of minutes, but that is the early hands up from the president. no decision immediately on

whether to commit more troops in afghanistan. there is more a video from the left-leaning -- of the left- leaning organization acorn, and it is to earn more controversy. undercover video shows an employee from the california office advising them on how to evade taxes and how to get a housing loan to start a brothel. it is the fourth such video and now pressure against acorn is reaching the boiling point. molly henneberg is on capitol hill. what does this new video show? >> the same type of things that we saw in baltimore, washington, and new york. in the case of this san bernardino, calif. video, the

video says -- the employee says that her supervisor would not approve, but gave advice to the couple. she says she has no problem with prostitution although she does tell the couple that it is against the law to have under age prostitutes in their care. jon: acorn officials insist that the employee was aware of this full discussion. >> they released a statement saying that the employee caught on to this camp and said that it was "sort of entertaining." but they were not even good actors. she went on to say -- acorn has also said the videos have been doctored, but we

should also point out, acorn has fired several people since the videos have come to light. jon: there are calls on capitol hill for a criminal investigation? >> yes, lamar smith wants the justice department and fbi to look into the group. in a statement, he says -- additionally, there is sufficient evidence, he says -- jon, he is not just saying that we should be looking into criminal actions, he also wants them to look into whether acorn is a criminal enterprise. jon: thank you. jane: new developments in the

case of phillip garrido. investigators are once again digging up his backyard in california searching for clues connected to two other missing girls. garrido is the one in custody for allegedly kidnapping and raping jaycee lee dugard 18 years ago and fathering two children with her. funny account is in california. what are the limits -- claudia cowen is in california. what are the similarities between these cases? >> first, their appearance. jaycee lee dugard had long blond hair. in 1989, a girl went missing. and all three cases, the girls were snatched in broad daylight from a public place.

according to eyewitness reports, they saw a vehicle similar to the one that was recently told away from garrido's house. the timing also fits as he was released from prison around the time that these girls disappeared. jane: the police sketch artist is also a pretty telling. >> that is right. it bears some resemblance to photographs taken of philip garrido. this is giving hope to the mother of the victim who visited the garrido property yesterday. >> i am hoping this leads to a resolution, a positive resolution. i know that it daily dugard can be found alive and come home after 18 years, my daughter can

do the same. >> 60 investigators from half a dozen law enforcement agencies are conducting this exhaustive search. it could last the weekend, they are using a lot of high-tech equipment, and they may even dismantle his home. jon: a mansion goes up in flames. the only option fire fighters have is to let it burn and protect the surrounding areas. exactly where the fire broke out, that is the surprise. ún what i need

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call the number on your screen. jon: now to a developing story in los angeles. for men and video of the house fire in the hollywood hills. not your ordinary bungalow. this is a pretty big mansion.

this started at 6:30 this morning. the flames were so intense, fire crews struggled to contain it. they were afraid if it would spread to the dry brush. because of the fire is under investigation. jane: a suspected serial killer appeared in court in milwaukee today. he is convicted -- suspected of killing seven women. he is now charged with two of those murders. dna from his toothbrush ended up linking him to the two murders and more charges could be coming. jon: and was a deadly crime spree that terrorized in washington, d.c. area in 2002. today, a judge set an execution date for the mastermind of the sniper shootings. he will be put to death on october 10.

he will appear to the supreme court and also ask the virginia governor for clemency. his accomplice is serving a life sentence for the shooting spree. jane: two dozen people have been killed in a massive wave of drug violence in mexico, some found inside a burning car in tijuana. a day earlier, someone opened fire inside a hardware store, killing five people. just over the border, five people were shot to death in a car wash. there have been 1300 killings so far this year. jon: de have you become a thing, and the money, but what about style? so many of them our backing fashion brands, but how is their business to win in the recession?

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♪ jon: dad is country music star toby keith. everyone loves him so much in the national country music writers association is going to give him the board of songwriter of the decade. he is credible to receive the award next month. jane: things are a bit higher at wall street. investors were encouraged by the jump in industrial production. but production seems to be a bit

slow for celebrities who have their own fashion brands. the recession hitting the runway for sure. >> last year, celebrity lines brought in about $2.9 million, which sounds pretty good in a recession, but in the peak of the business, 2006, that is about $600 million less. "the wall street journal" had a great rundown of who has been successful, and who has not. we have seen several lines close in the past several years. the ones that are surviving are justin timber like -- timberlake's line and he is bring down the price point.

jon: now to the white house where president obama has been meeting with canadian prime minister stephen harper, talking about the economy and the more it in afghanistan. >> what is clear is, we have lacked as clear of a strategy can the mission as is necessary in order to reach -- reach our overriding objective, which is to dismantle, and disrupt, and destroy al qaeda and prevent it from being able to project violence against the united states, allies like canada, our bases in operation around the world. that has not yet occurred. when i came in, i had to make a

series of immediate decisions about sending additional troops to ensure the election could take place but i was clear at the time when i said post- election, we would need an additional assessment. general mcchrystal has carried out his own assessment on the military strategy but it is important that we also do an assessment on the civilian side, diplomatic side, development side, that we analyze the results of the elections and then make further decisions, moving forward. my determination is to get this right and that means broad consultation, not only inside the u.s. government, but with our nato allies and partners. i am going to take a very deliberate process in making those decisions, so i want to be

absolutely clear because there has been a lot of discussion in the press about this, that there is no immediate decision pending on resources because one of the things that i am absolutely clear about is you have to get the strategy right, and then make a determination about resources. you cannot make a determination about resources, certainly about sending men and women into battle, without having absolute clarity about what the strategy will be. we are going to proceed in mixture we do not put the cart before the horse. >> just quickly, to try to answer that question directly, i certainly do not think, notwithstanding the continued problems in many parts of the country, the fierce efforts of

the insurgency. i do not think the taliban constitutes an alternative government or any immediate threat to replacing the government of afghanistan. in that sense, we can see the progress that has been made. obviously, we are concerned about the strength of the insurgency, we welcome the renewed american effort, effort of other nato countries. our emphasis in canada, for some time, particularly since we extended our mission, is the necessity of seen afghan government accept and be able to handle a greater responsibility for the day-to-day runnings of the country. afghanistan is a very difficult country. all of our military, those who have been highly gage, have done a tremendous job moving the ball forward, but in the end, we need

to be clear, the security and sovereignty of afghanistan can only be done in the long term, by afghans themselves whenever we do on both sides of the border, and with nato allies, have to have that objective. eric? >> i have two questions about security. canada and other nato allies have set deadlines to leave afghanistan. mr. president, are you worried that the u.s. will be left to carry the burden in afghanistan? what role would you like canada to play? prime minister, would you have any advice for the president, exit strategy, or otherwise? on the economics, mr. president, you have assured us not to worry that american business is hurting canadian exports. i wonder if there is anything

more that you feel you can do about that. mr. prime minister, your view at this stage, as we see america played itself out. >> let me start with afghanistan and reiterate what i said earlier. we are in the process of making a strategy -- a series of strategic decisions that will be sustainable, and will be doing so in close consultation with our allies and partners. we are tremendously grateful for the extraordinary sacrifices of the canadian military. they have fought, they have had staying power, they have absorbed losses that we all agreed it for -- grieve for. so i'm not worried about what

will happen post-2011. on what to make sure, given the commitments that have been made and are continuing, that we make sure that the canadian presence fits into a strategy and is accomplishing our goals. our goal is to eliminate ellicott as a threat -- al qaeda as a threat, and as the prime minister mentioned, it is important to recognize the ultimately afghan to care body has to transition onto the shoulders of afghans, the afghan government, and afghans security forces. to the extent that we are building capacity, i am sure that will be part of any long- term sustainable strategy. on the economic front, the issue of buy american in the stimulus

package, i am glad to hear that canadians see this as -- that the recovery package has been some division. i have been trying to persuade the american public of that fact, that we are creating jobs, putting people back to work. the buy american provisions that were there, i noted at the time, we made sure they were wto complaint. that does not mean that they are a source of irritation between the u.s. and canada. prime minister, i want to emphasize, has brought this up with me every time we have met, so he has been on the job with this issue, and our teams have been working together. it appears there could be ways to deal with this bilaterally, as well as multi-laterally. the problem with provincial governments in canada is, as my understanding is, there are not

signatories to the wto agreement that would have preempted any of these buy american agreements. in addition, we are pursuing on a bilateral track efforts to make sure that these tensions diminish. but i do want to keep things in perspective. u.s.-canadian trade continues to be robust. canada continues to be a huge trading partner to the united states. business is in the united states and canada both benefit from that trade, as well as consumers. there is no prospect of any budding trade war between our countries. these are legitimate issues that need to be raised, but i think it is important to understand, on this scale of our overall trading relationship, these

should not be considered the dominant elements of our economic relationship. >> first of all, on afghanistan, it is important to rephrase your question. canada is not leaving afghanistan. we will be transitioning from a predominantly military mission to a civilian, a development mission. that transition is already in place. as you know, canada has had a robust engagement for some time. over the course of the last three years, as a consequence of that, increased our troop levels. you heard what i said earlier, what was essential, that what ever nato and our u.n. allies are doing, and eventually, this country can stand on its own two feet, particularly on the security side, where they have their primary responsibility, so

that we can help on the humanitarian and development side. on buy america, i had a discussion with the president. we have negotiated looking at different options, and we will be giving more detailed direction to them and -- for the types of options to look at. i agree with the president's assessment. these are important he returned, they are having real impacts, -- irritants, they are having real impact, but they are pretty small in the scope of the larger u.s.-canadian trade. we believe that protectionism is a dangerous threat, and we continue to show the world that the u.s. and canada can have in robust trading partnership. [speaking french]

[speaking french] jane: if your french is in good, mine certainly is not. we heard a lot about afghanistan trained with the u.s. -- trade,

-- afghanistan, the trade with the u.s.. the president wrapping up with the canadian prime minister. more to come, we also, on capitol hill, have a picture to show you. that is where max baucus of the unveiling his proposal for health care reform. he has been working for months with his gang of six, this bipartisan group, but he will be standing at the microphone by himself. there are concerns from both sides, but as major garrett is reporting, the white house is basically telling him, they think this proposal is as close to what the president had been aiming for. you will want to listen to see if this is what we can expect in terms of health care. we will be right back.

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jane: we want to update you now on this murder case from yale university. the only person listed as a person of interest in the murder of annie le has been freed this morning. raymond clark was freed after police conducted a search of his apartment and obtained a dna sample. he was working as a lab technician in the same building where annie le died. there were reports that she was asphyxiated. we know that her body was found in between the walls of the basement. with me now is a reporter from a local newspaper. what do we know about raymond clark and his relationship? were they close co? >> police are saying very little about how he may have known her. i did have a chance to speak to his attorney and i was hoping he

could elaborate on this. the only thing he would tell me is that his client is committed to cooperating and committing with -- communicating with police officials. jane: there are a couple of other reports out there -- we have not confirmed them, but potentially, this guy was upset at the way that annie and perhaps other students were treating the animals in this lab. have you heard anything about that? >> there has been a lot of rumors since day one, so we are trying to stick to what weekend trust. can i confirm that? absolutely not. jane: he was there in this morning in police custody but

now they have let him go. i guess as a layperson, i would say, what are they waiting for? >> they served a search warrant last night. one of those was on person, meaning that they wanted to take a sample from his body. sometimes getting those samples takes time. it could be 24 hours, 72 hours, we are not quite sure how long it will take for them to get that information. jane: another thing that has been reported, not only did he work in the building, but his fiancee and other family members worked in the building as well? >> i cannot repeat -- cannot confirm that report. jane: thank you very much. if she hears anything, she will be updating us. jon: we are waiting for a news

conference from senator max baucus, the chair of the senate finance committee. he is holding a news conference after months of fiery debate and closed door meetings about your health care. what is at stake is the way your health care is dispensed and paid for in the country. his proposal is just out this morning, but he is doing it pretty much alone without others on the committee, this so-called gang of six, who have been negotiating this for over a year. baucus says his plan will close the coverage gap without adding to the deficit, but there is concern this more than $800 billion proposal is too expensive and will not do enough to cut health-care costs. those concerns are coming from both sides of the aisle. as we await those remarks, let's speak with bob beckel.

monica crowley is also with us. both of them are fox news contributors. more than a year of debate in the senate finance committee, 20 hearings at least, and when all the dust settles, you have one guy, max baucus, coming out with his proposal. is it that a bad sign for this bipartisan bill? >> no, because you used -- because -- i will use an arcane washington word. the chairman's mark. there are very few liberals or conservatives on this panel that are going to get themselves tied into endorsing this proposal, until the have a chance to get amendments that they like. there are liberals on the panel that won a public plan. this one does not. there are conservatives that would prefer not to have the stress falls on taxes. that is not going to happen.

it is not surprising at all. jon: do you see it the same way, monica? i enterprise that he does not have even the other democrats from his committee. >> the reason we are seeing this is because the democrats put in an artificial deadline of today. they have been making progress with a number of republicans, including some in that gang of six, but none of them are showing up. they all hate this thing. the truth is, the chaos is on the democratic side. we heard from some democrats saying, but would be included here would be tantamount to a tax increase on the middle class, and i cannot vote for it. it will be interesting to see what he proposes today. >> it everybody hates this thing

so badly, why is it going to get out of commission? it needs to be voted and brought out. max baucus is going to have this bill on the senate floor. that means the majority of the people on the committee are going to vote for it. >> of course, because the democrats have all the votes. don't you think that thie markup next week will be an interesting process? it was not supposed to be this hard for democrats. they have 60 votes in the senate. where are they? >> it is always a hard negotiation among democrats because we are such a large majority. the fact is, this bill will be voted on by a majority of the committee and will be brought out in the senate. that will have to be merged with the kennedy bill. both sides will have to work.

to suggest that people hate this bill is not correct. this is a chairman's mark. if you follow washington, you will see every piece of legislation that is introduced by max baucus would be alone. >> this is such a huge portion of the american economy and everyone is involved in this debate. don't you think he should have some back up from his own party? jon: since you seem to know what is going to happen next week, i would like to have you picked some stocks for me. the white house is saying, according to major garrett, that this bill from max baucus should win some support in the gop. it sounds like spinning. this is a statement from a democrat from texas.

>> let me pick some stocks for you, if that is your question. if you think max baucus is introducing this bill today and he does not have the guarantee that he had the votes to get this out of committee, you are sadly mistaken. this bill will be brought on a committee and this is what rockefeller will say, for example. i will vote for the bill but i was trauma -- try to get a strong public option. i will talk to you about stocks when this is over, but you have to follow what happens. this is simply politics. the bill will be amended and joined together with the health reform bill already there, and i guarantee, you are going to have a bill that barack obama will sign by the end of the year. jon: if it does not have the public option, monica crowley,

will republicans hold their noses and vote for it? >> i do not think so. i think the democrats are going to try to back into a public option. in other words, there will not be a full, frontal confrontation of the public option, but the max baucus bill will have co- ops. over time, you will have a federally funded, federally- staffed co-op, which will eventually evolve into a public option. i have yet to see what the conversation is about this trigger, and there are back door ways to get into it, so some democrats may vote for this if they believe that they will get to the public option eventually. >> if you think this is some

major public option, you are kidding yourself. this bill calls for portability, no pre-existing conditions, covering the uninsured, reducing prices for those making under $35,000 a year. what is it about this that you do not like? >> the cost is probably a lowball estimate. the kennedy bill, all of those others cost $1 trillion or more. it is interesting how they are going to pay for this. >> if the cbo does not say that this is deficit-neutral, i will apologize, but i want to hear what you do not like about this bill? are you against getting insurance companies to stop denying coverage for pre- existing conditions? jon: i'm going to ask our director to take you off the

screen to show you the committee room. this is in the dirksen office building where max baucus will be stepping to the microphone to defend this thing. it is a chairman's mark, in washington language. basically is his proposal. bob beckel, let me ask you a question. we have heard warnings about how the health care system is bankrupting us. if that is the case, why do these proposals not take effect until 2013? >> it will take time to set up insurance exchanges and cooperatives. by the way, the congressional budget office and other economic groups have said in another 10 years, people will be spending 40% of their income on health care. if you take the status quo, you are dead.

john, the skeptics are wondering whether mr. obama wants to run for re-election before this takes effect. >> that is probably skepticism that is ill-placed. if you are trying to change a health care system that had been in the hands of insurance companies after all these years, it will take a while. if republicans vote against this, next year in the campaign season for the insurance companies, you are in good hands. >> it is all about politics. when you look at these polls, what ever bounce that president obama after his speech to a joint session, it is now lost and over. 50% of the american people do not want this radical remaking of the health-care system. you mentioned a couple of critical things about pre- existing conditions, not losing your health insurance when you get sick. republicans are for that, too, but they want smarter reform,

not a radical revolution in health care that is going to cost them more. >> what is a revolutionary? >> it would decrease access to their doctors and cheat them out of insurance. and only give them one option which is the government. >> you never have an answer. you only sit back and criticize and say that we are going to go broke. if you want to get down to politics, we have more votes. jon: after listening to you two, i know what it is taking so long for the senate finance committee. in other news, and the chairman comes out and tells us what is in his proposal, we will take you back there. i hope that you can stay with us to analyze it for us. jane: house republicans are calling for more details from the obama administration when it comes to the white house czars. their range of influence ranges

from the auto industry to foreign affairs, even executive compensation. some influential congressmen are urging the president to release that information about these people who have this power. shannon bream is on this story. what is in this letter? >> two congressmen wrote to the council to the president and said they have concerns about these czars not being fully bedded and even say that the white house is violating the constitution. >> constitutionally, if somebody has authority through the chain of command, they have to be vetted and confirmed by the senate. that is the cabinet process. a few of these people have gone through that. most have not. that is where the unconstitutional behavior begins. >> they say they are ready for it to end and of putting the onus on the white house to make

that happen. jane: how many are there? >> we know some of the bigger ones like herb ellison. and the stimulus czar. critics say they are really not trigger how many there are out there, how many the white house considers. they say it could be in the 50's. there are more worried that these people have not been fully vetted, and they say -- they go on to talk about van jones and how that is not the kind of person we should be appointing. on the house side a number of members have come together to hold a press conference this afternoon to talk about how they're moving forward. they have sponsored a resolution

asking the president to disclose detailed information about all the czars. that would give the public confidence if he is willing to give up that information. although, it is not likely that the resolution will reach the house floor with the democrats running the show, but at this point, it seems to be more of a show of solidarity. jane: thank you. jon: let's bring back to bob beckel and the moniker crowley. there is -- monica crowley. there is said to be concerned with governors in both parties about this proposal. we are waiting for max baucus to bring it to us. a lot of government is concerned about the cost of covering millions of people in their state to do not have health care right now. >> that is because they will be in the medicaid rolls. it is a legitimate argument,

something that mass baucus has tried to deal with by giving credits to the state government. states are going to have to assume some of the cost. jon: if the states are going to have to assume the cost, is that unfair? >> it takes real talent to get everyone in america in revolt over a policy. liberals are in revolt over the public option. conservatives are in revolt over the whole thing. blue dogs are revolting over the cost. now cash strapped states are seeing themselves in recession. in minnesota, the unemployment rate is 13%. they cannot take on this additional cost which raises the

additional question of what is the big rush? if this does not take effect until 2013, why do we have to have this done in the worst -- in the middle of the worst recession with the highest unemployment rate since 1983? >> everybody is not opposed to this bill. a majority of americans want it. >> that is not true. >> i want to counter something that you said before. a slight bump after obama's speech? his popularity is rising. >> personal popularity is different. i'm talking about the taxpayer. we are looking at different polls because i looked at rasmussen and it was 52%. >> i talked to pollsters, and they say that it has gone up. jon: a quick question for you,

monica crowley, is this a test of the president's leadership, when it comes to getting this thing through congress? >> yes, this is his signature domestic item. if this goes down, at least his presidency domestically, is shot. there are questions about why he waited so long, why he allowed the opposition to take root over the summer and dominate the debate. we heard a strong speech from him last weekend but it did not enter the key questions of how we are going to pay for this. i think that we have chipped away at his credibility and people are starting to question whether to believe him on anything. jon: bob beckel and monica crowley. thank you. now you know what it has taken more than a year to get out of the senate banking committee. the chairman of that committee

cannot even make it on time. he was supposed to make a statement at noon. there he is. jane: "the live desk" will take you through that period. martha: max baucus about to announce his version of the health care reform bill. this is something that we have been waiting for. we are getting information on who could be in favor, who is opposed. >> welcome, everybody. our health-care system is simply unsustainable. it is breaking the bank for everyone. from families, to businesses, to government. millions of americans to date simply cannot afford quality health insurance. in fact, in the past day, another 17,000 people lost coverage