>> live and at large and with friends like these... >> got to tell the president has done things terrific this is not one of them. >> small wonder the president's approval rating is hurting despite the grand tax compromise. the fellow creme dem kratz negotiated with terror. >> the republican blackmail here standing with a bunch of

gangsters nice tax cut you got over there it would be a pity if something happened to it. >> party boss says your compromise stops. >> the bill you passed sucks. no question about it. you make more than a million dollars for getting a tax break and doesn't do anything for job creation. bill clinton raised fax taxes i 1993 and we had the best economy we have had in any of our lifetimes. their f the sus falls. >> the president on saturday nate explaining why he caved. >> the simple fact is this white house had no choice. >> republican leaders insisted on tax cuts for the wealthy and as i said in my press conference monday they decided to hold us hostage, literally. they held us hostage for three-days, bounds, gagged, blindfolded in a darkroom somewhere outside washington. it was a terrifying experience,

hard to put into words, i don't think i will ever get over it really. >> get over it is exactly the advice mike bloomberg has for opponents of the compromise. the mayor telling mr. obama to treat the hold out like cry babies. >> this is what i did. this is the best i can do. suck it up and let's get on together. we have a lot of other things we can do together. this is not the only tough vote. this is not the only issue. >> not the only issue. welcome to the show everybody. i am geraldo riverivera. before i ask my first guest mortgage zuckerman one of the nation's rich he is savviest businessman the tax deal he reached between senate republicans here is carol ion shively. i want this tax relief unemployment insurance reauthorization and job creation act of 2010 is all about. >> caroline? >> geraldo white house advisor david axle rod called the tax

cut deals odieus but said it's the best he can get through. >> these came together quickly and prompted by the looming deadline. we felt a sense of urge again see. we brought them in when there was to begin that process it just accelerated very quickly and we felt that we had to cease the moment. >> the senate has a test vote on this monday. but they were not going to reach the floor without scaling backs tax relief for the richest americans. they keep the bush tax cuts going for all americans including the wealthyest for two years. it extends unemployment benefits for another year. many house democrats are angry millionaires won't see their taxes go up but republicans say it's what the economy needs. >> there are some in the democratic caucus that would never go along with any compromise. i think moebs people however believe on this issue the administration did get out negotiated. >> only in washington is not raising taxes considered a tax

cut. nobody is getting a tax cut here. we are not cutting taxes. we are preventing tax increases from occurring. >> the state taxes could be the area where we could see changes. the state as large as 5 million could pass without being taxd plus another 5 million for spouses. house democrats are trying to scale that back. they have a limited window. dick durbin the number two democrat in the senate says democrats should pass it now before there's still majority in both houses. >> thanks. just about every american who pays taxes will benefit financially from president obama's tentative deal with republicans for spending the tax cuts. economists largely in agreement the compromise will help stimulated the economy. big beef as you have heard is that you heard everybody gives something a bill will add enormously to the deficit almost a trillion dollars to the decade while at the same time allowing the richest americans people

like my next guest to a much much lesser extent me to keep the great deal we have had on taxes for the last ten years. for the latest mortgage zuckerman editor in chief will come down on the compromises. thank you for being here. what do you think? >> it is a compromise. i think it was a necessary compromise that i personally supported bill clinton when he introduced these higher taxes on the wealthy back in the 1990s. i oppose it when george bush do these taxes i believe we have a long-term fiscal problem unless the wealthy people seem to pay a fairer share of taxes based on income. we are not going to get anywhere in terms of what we can do to solve that. it is a major long-term problem and major short term problem. >> if you were in the senate right now is it yes or no on this vote? >> if it's the only option i have i would vote yes. >> like mayor bloomberg. >> right. >> like bill clinton you support the president and the republican's compromise?

>> yes. i think if we did not have something like this, it's not my preferred bill. i would have like to see it in terms of who benefits and who doesn't benefit. the option it would be much worse. >> a fox news alert, ladies and gentlemen, we are our washington bureau confirming now with multiple sources they expect michael steele to announce tomorrow he will not be running for reelection as chairman of the republican national committee. comment? >> the chairman of any committee whether it be the republican or democratic committee should not become the issue. he became the issue to a degree that made him virtually a noneffective republican chairman. republicans have a great feature over the next several years in american politics. they don't want them to become an issue. >> do you think deficits only matter when becoming indebted because someone other than receiving the benefit is getting it? >> i think deficits and debt

really matters. you saw we have two deficit commissions that came out with reports in the last couple of months at the most. those deficit commissions are now toast. because when you take a trillion dollars and add it to the national deficit without paying for it and allocating it the way it is, you could say it's a political compromise and i agree with that. never the less we have a huge problem. we are not addressing it we are making it worse. >> around we pushing all of these problems down the road? >> yes. >> a compromise against everybody what they wanted it gives the other guy what he wants, too. >> i agree. we have yet to show we have the ability to suck it in and actually cut expenses and increase tax revenues. you will never deal with a debt of the deficits unless you increase taxes. you will never deal with it unless you have some control over our expenditures. i would have supported it much more strongly. if it the third and fourth year we took steps to reduce our government expenditure.

we do nothing of the sort. >> one thing they do though is broaden the exemptions where state tax lowers the rates or estate tax so rich people can pass more of the fortunes on to their children do you agree with that? >> no i do not. i never believed in it. i do not think everybody a lot of people have done really well. i do believe we have an obligation. that obligation is to make sure that our children and grandchildren have a better life. you continue to add the kind of debt and deficits we are accumulating that's what might be possible. we can wreck the economy never mind even if we don't do that we will make it more difficult for our children and grandchildren to do better. >> final question then. would you join bill gates in declaring half of your fortune would be left to charity? >> not that i would disapprove that in any way. i don't like to be long to lists

of rich people. i am happy to give any way of a great deal whatever i would be fort mat to make i don't prefer to be part of these kinds of lists. >> one of your charities gave money to madoff his son killed himself. >> i don't know all of the details of what the children knew or didn't know. it's impossible to image he didn't know what was going on. >> i agree. >> when anybody commits suicide at that age it's really a tragedy. >> thank you. coming up was 12-year-old brittany smith a willing accomplice to her own kidnapping and her mom's murder. is there a reason the new york fashion designer was found dead in a icy hotel bathtub. what was miley cyrus smoking? take a look. take a live shot. this is a shot. this one. coming up after this. zx7?

>>th that meets out there say the next year the tax cuts will add $501 billion to the deficit. but will it really? i mean right now the deficit is $1.3 trillion. if you make the deficit big enough eventually we will only see zeros, no deficits. if you keep adding to it eventually it will reach infinity and we turn our heads sideways and boom it's an 8. >> do americans really care about the deficit or is it only when the money the deficit is borrowing is being spent on someone else? in the sued yo outgoing democratic congressman and retired haif sri admiral joins us while retired fbi special agent frank keating is with us from washington tonight.

welcome. you get a vote. you are still there lame duck or not congressman, admiral. you voting up or down? i got to ask. >> are you voting up or down. >> they should have had the courage after this. 6 months prior to the election each time i thought they should handle it. right now we have given a gun to the other side. it can be held at the working family and the unemployed. we can't permit the trigger to be fooled. >> the terrorists and hostage. >> are you being intentionally dramatic on this? >> it is a concern. the fact that 52 percent of all of the tax cuts during the bush years went to the top 1 percent the wealthyest of americans. we have a deficit. we should have seen whofdz the deficit hawks.

here's my major concern. this is really a back door stimulus drill. >> it's the best thing about it in meij my view. if you spend the money you might as well do something. >> we will bring the unemployment rate to 8.5 percent. do we have to do it? we have to. >> i want you to give your opinion on that but firs i have to ask your comment on michael steele apparently not running to be re-elected as chairman of the rnc despite his tsunami of a victory last election. winston churchill said the grave yards are filled with indispensable men. in the case of michael as a member of the party of lincoln it was wonderful we had african american chairman it was a statement the days of racism are over and republican party recaptured the party. in michael's case he became the

issue the party was secondary and i think the issues over his books the issues over his making money to give speeches all of that was diversion nature reto the greater and important good of electing republicans and having the agenda the issue not michael. it was courageous on his part and it was the right thing to do. >> do you use the same analogy by the election of the president and his time is also due, governor? >> i was a mccain guy. i had dinner saturday night before the tuesday inaugural with a number of my friends here in washington and every person the restaurant with the exception of a few of us at the trabl were asking americans everybody on the street for african americans it was a city of joy and happiness that finally the era of slavery, the legacy of slavery was behind us.

i was thrilled about it. but now of course the president and people will appropriately debate not its race but it's policies. >> will the president be the president admiral come 2012? >> it will if he let's people understand he knows them. people try to neutralize the government i think on the last election. they still understood that two years before the republicans didn't protect them from the saver sandaling recession. then they through us out the democrats all of a sudden you will touch what is most personal to family the healthcare bill and didn't explain it well. pennsylvania -- washington, d.c. doesn't understand that people just want to make sure that we can't explain we know them. they don't care if you go left or right they want to work together to help solve problem that is effect our lives and stop the hat fields and mccoy at motts fear.

>> that's an accurate way of describing what's out there. governor keating thank you. congratulations in your new life. it will be interesting to wra w your career. >> what was the relationship between 12-year-old brittany smith and the man suspected of murdering her mother? back in a flash. c@w

>> we have good news that brit is safe and we are hap knee and anxiously awaiting home coming. we are so thankful to everyone's contributions for making this a national event. brittany will be home for christmas she will be here to tell her mother good-bye and she will be able to help her mother rest in peace tonight. there has been a ray of sunshine on this very dark event, may god bless you all. thank you once again. >> with her aunt expressing the obvious relief of everyone who followed this case you almost knew the guts of the story i leave from the very beginning the original surveillance photo showing the missing 12-year-old brittany walking along side her dead mother's sleazy boyfriend

jeffery easley. he killed the mom 41-year-old smith in her home sunday then he snatches the kid who i think was infatuated with this creep she went along. she goes along for the week long coast to coast ride that included some camping. after dumping the mother's stolen dodge neon at the san francisco airport the low life bruiser and tiny victim who don't watch news program didn't realize they had been the subject of countless reports were recognized friday outside of san francisco safe way store holding a cardboard sign asking for money. great legal panel to talk about this bizarre case. arthur idala, joey jackson and kimberly guilfoyle. what about my theory the kids was dragged along but kind of willingly went because she has a crush on the boyfriend? >> yeah, you have a theory of infatuation. to me i don't look at it that way. this is a crime that has been

committed against a child he's a child molester he abducted her. >> possibly a rapist. >> perhaps in some way evidencesable to get her under his influence. >> and a murderer. >> she will be a key witness in exactly what happened to her mother. hopefully it wasn't a point where this guy brain washed her. i don't think it was a love relationship where she was a willing participant especially with respect to the mother. >> why not? >> i don't believe that. >> she is 12. >> it was a short time she was with him. i don't think a 12-year-old is going to willingly participate in the murder of her mother to run off with this guy. >> go ahead. >> geraldo, being the lawyer that you are i just like to know what evidence you have that he's a creep he's sleazy a low life. >> he has a couple of arrests. beat up a cop. >> everybody in this room may have a couple of arrests. >> speak for yourself. >> look, obviously it doesn't

look goods. it's a bizarre set of facts. >> you are defending the guy now. >> i am not defending him i am just being a lawyer and i just want to have evidence. >> let's look at evidence. on the issue of creepy and sleazy let's look at the evidence. the evidence is he took the car. it was a dodge. he's a car thief and a kidnaper. >> and a child abductor across state lines. >> he uses a credit card uses a tent with the credit card he's going across state lines. >> buying a tent with a credit card. >> when it is not yours it is a crime. >> what more proof do you want conclusive proof that this man is completely evil. >> dna. a murder weapon. >> a rapist a pedophile. >> who said he raped any one. >> she is 12 years old. >> are you going to say it's a consensual relationship? >> camping out in a tent. >> who said they had sex.

>> wait and see. you are being naive. you are being naive. >> i am being a lawyer who wants to have facts. >> she didn't ride her bike across the country. >> the good news is we will worry for quite some time about the status of the little girl. >> when she was alive or dead. >> he is making sure she is alive. >> how do we know? we don't have anything in the research. about rape. >> it's enough that he's a murderer. >> it's all right. nice try to defend them. >> i am not defending them. all i am saying is four lawyers sitting around the table some facts before we jump to it. >> mother is dead. he stole the credit card, he is charged on -- they were seen outside of the

safe way together. >> top forensic pathologist gives his theory why the death of a bathing suit beauty may not have been murdered. that and here is y what she was smoking? let's take more shot at this. i am trying my best best to keep it away from my crew. fighting them off. what does this and miley cyrus have in common? we have the doors locked so the narcs don't bust in. >> arthur is a defenseseseseses.

back to geraldo. >> i am sure you know we had a good old fashioned minnesota blizzard yesterday. heavy snows, high winds a short after 5:00 a.m. this morning. we had three rough panels rupture providing for inflation of the roof. >> that's one way to say it.

killed two people and caused hundreds of car crashes stranded travelers and a reshuffling of the nfl schedule has hit iowa, wisconsin, michigan and illinois. this was the metrodome yesterday. the good news is the football vikings who metrodome collapsed under the weight of the snow it's embarrassing incident but isn't that amazing. it white thet them a new football stadium. it has been on hold for decades but they are really talking about it after their metrodome deflated. meantime as fox has been reporting all day this week's game originally scheduled forenoon today sunday has been moved to tomorrow night monday night where they are going to play two monday night games the vikings game will be held in

detroit. it was a p prime time in crime time alert. the bruised body of the swimsuit designer found slade and half naked in an overflowing bathtub at the soho club and motel may not have been murdered at all. before we bring in a renowned forensic scientist who's street wise theory may open your eyes may make you scratch your head here is detective bo deedle at the scene. >> 3:00 thursday morning sylvie krs cachay was found dead in the bow hoe house. tell me about the details. >> the details of what i heard is that the young lady that was killed was with this young man and he had a relationship going on where they led up to it having an argument. >> the young man is nicholas brooks 20-year-old man of a song

writer. he was having trouble accepting the breakup with his swimsuit design girlfriend. two weeks ago she told her mom the relationship was over. >> she told me mom we are just friends right now. >> where were they staying in the hotel? >> supposedly what i heard was that he was smoking crack and this whole candle thing and her apartment where he was sometimes staying with her he set a fire. that's why they were staying there because he was whacked out then. it was an elite club and hotel that hosted stars like nicole kidman and naomi watts a scene from a movie sex in the city was shot there. >> we just dropped by the soho house for a dip. >> hotel staff were summoned by guests who complained of flooding. they found sylvie laugh clothed in an overflowing bath. she had red marks around her neck and a bite mark arched her hand. >> nicholas brooks was arrested

for attempted murder and also charged with strangulation. further charges will await tocks nolg report. usually takes about two weeks. >> no one was seen entering her room between 12:30 and 2:49 a.m. when her body was discovered. brooks left the hotel about 2:15 a.m. saying he was heading to a bar. >> how did the police know that brooks was in that room the time that cache was there? >> they had a videotape and the chic hotels have video cameras inside of them. i believe they a video time line. >> this bad apple doesn't fall far from the cream tree. nicholas brooks is the son of 72-year-old joseph brooks facing unrelate charges of sexually assaulting 11 women who came to his manhattan apartment to audition for suppose he had mv sri roles. >> what are the police doing now? >> i believe they are getting a

videotaped statement and confession on how he killed her. it's a ground ball, craig as far as i am concerned. >> may be a ground ball to police but to sylvie's parents there are burning questions to be answered. >> want to really know what happened. why he would do this to her. what happened? she was a good girl. >> an apology later from brooks was found that their relationship was over. they claim cachay was fine when last seen by her boyfriend without being held for attempted murder and strangulation. >> the dad wrote "you light up my life." >> before i ask a crime panel why brooks is only charged with attempted murder rather than

murder michael baden has a provocative theory and brooks defense would do well to glom on to. what is it? she is found dead in the ice cold tub. >> dead in a tub with water in it and partially dressed. she is not undressed. she comes to the hotel a bit woozy and volunteered to the clerk she took too much xanax. the first thing i would look at in somebody in that sort would be a drug overdose, because the drugies will put overdosed companions into a bathtub, fill it with water as a means of reviving them. >> that's an urban legend. >> it's a legend that drug overdose people use. they will put people -- in my experience coming into a place where a person is in you tell with a -- water with clothes on

and using drugs that would be my first thought. >> a fellow junkie using the old street method of bringing someone out of an overdose throws her in an attempt to save her puts her in the tub. >> marks on the body because they were having sex, having other ways to get marks on the body including a bite mark on the hand which is described if there is a bite mark then of course who's bite mark it is is going to be important. i think in this instance the toxicology which should be completed within a day or two or three at most is going to answer that question. >> it will, doctor, how do you explain the decompression of the neck? >> the red marks on the neck. >> we don't know what the medical examiner -- they refused to put down the cause of death strangulation. >> which is why they didn't charge murder they have to charge attempted murder. >> until they get the results of the toxicology. >> what if they come back with high levels of xanax all of the

attempted murder goes away. because maybe it's complex neck during sex. >> he says it's rough sex. he goes with the theory. >> just like my dad work together now baden and i work together. >> this will be resolved easelly by toxicology. >> if the toxicology says she has lethal levels of drugs it is a defense. >> if you die of lethal drug overdose. >> wouldn't he have to testify? >> he was already testifying in the precinct for a day cooperating. >> they indicted him anyway. >> they didn't like what he had to say. >> the theory of the defense attorney thus far from the interviews he has given he says my client is going to tell exactly what happened. she was fine when he left the room. there were other people on video

therefore they could be responsible for the death. >> i want to squeeze in the alabamacation it hasn't gotten a whole lot of news but in the south it is getting along of attention. saturday they found the remains of the horribly abused 5-year-old daughter of john deblaze. i am not sure how you pronounce it. man charged with murdering natalie his 5-year-old and 3-year-old brother chase who's remains were gis covered wednesday in mississippi. both children killed separately natalie first the son chase after being repeatedly abused and dressed only in a diaper was killed on or around father's day. a horrible story. deblaze blames the murder on heather who is charged with child abuse not yet murder. >> despicable. >> this is a twisted story. talk about the abuse of the children and they are 5 years old, 3 years old now you talk about bones being found. >> he was saying it's the commonlaw wife who was who did

the murder all he did was dispose of the body. >> they will try to get one to go down for it and cut a deal whens the -- against the other. i think they will be found liable for the murders. >> wouldn't you play one against the other? >> this is the guy you could use the word creep and sleazy. i believe the girlfriend has some sort of disability. she is legally blind or something like that. it will be hard for him to say she did this. >> child abuse. >> the little three-year-old stands up all night long. >> could you find anything from the bones? >> if there are cuts or breaks, stab wounds to the bone you can find that out even after the body is skeletonized. what happens in these cases in my experience of child abuse deaths sometimes they will each blame the other. and the district attorney has to

figure out maybe one did it and the other didn't. >> it's a home invasion go both. >> cops say the murder of the hollywood publicist is solved, but you are about to hear from former lada who believers the real killer may still be walking the streets aft

>> the weapon used does preliminary na preliminarily match the evidence. >> there was a question earlier whether mr. smith knew mrs. chasen. i believe mr. smith acted alone. we don't believe it was a professional hit. it's an open and ongoing investigation. >> talking about mixed signals a week ago authorities in beverly hills said the suicide gun used by harold smith the 43-year-old ex-con person of interest in the ronny chase sen murder investigation did not match the gun used to kill the prominent hollywood publicist. on wednesday they changed their mind made me look bad claim the results confirm smith's suicide gun was used to murder 64-year-old chasen in a random act of violence. some experts not convinced.

mayor jim delshad joins us along with former district attorney robin sax. you are convinced they have the right guy. it was this harold smith and he killed himself when confronted by the cops. >> first of all let me set the record straight. i am here to set the record straight and not disclose anything that's going on in the investigation. >> understood. >> you made the comment a week ago level hills police said it did not match the bullet. that is erroneous. it never came from police. st it was other people who seek the information and not sure they did that. this is the only time they said the bullet matched the cop. >> did they have the right man? >> yes. they say he acted alone and he is the one who pulled the trigger. >> robin, you have an

interesting article i have read in which you say how unlikely it is he rides his bicycle 7 miles from a seedy area in west hollywood to beverly hills to stalk from the buys cycle a woman in his mercedes at midnight, 1:00 in the morning. why else do you think it unlikely? >> it was erroneous information in november he gave us the reports someone in an suv and someone who came at a high distance. it is hard to trust what was erroneous. who is providing us the information? >> fwl why did you think it might not be harold smith? >> if the gun shot wounds are three across the chest it was a talented shooter.

if that comes out false my opinion would be different. this guy was a nut. this was a 51/50 guy in los angeles someone who is blaine nuts and not someone who is going to end his life with the cops thinking he's the perpetrator. how can you say you have the guy without having tested the bike for the gun shot residue and vog not done more. this is the only hard evidence we have. they say they are closing up shop and we are done. >> i wonder do you -- >> you may respond, please? >> i like to reply to that. i don't think this is a closed shot. it is a 60, 70 percent you still have to go. the buys cycle was not given to the beverly hills police yet. they have requested it from the los angeles police. it was to be given to them.

>> do you agree it is highly unusual for someone in a buys cycle to stalk someone in a car? oo no if fact the police department has said it quite possible they do a lot of criminals use buys cycles in order to get through the traf iblg and sometimes they bump. it is quite possible to do. >> mayor, thank you very much. robin sax thank you. take another shot, peter. here it is. it's miley and here's what miley got caught with. we will talk more after this.

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>> my staff volunteered to roll

this for show purposes. miley cyrus was getting stoned days after her 18th birthday. what was she puffing, how will it effect the former disney super star's future? arthur you want to pass it around give it the sniff test? >> this is something my grandmother used to put on the ravioli with butter. >> that's a great defense. >> that is one i have not heard. >> it is salvia dinanorim, 100 percent salvia leaf you have to be 18 years and older according to the manufacturer. they guarantee satisfaction. it has mold on it. you can turn it into club 135, 531-5th avenue.

>> isn't this a brilliant offense to marijuana. >> just to be clear she is not in any legal trouble she is probably in trouble regarding her contracts. >> she is not a disney star any more. >> billy ray cyrus was very dejected when tmz ran this dramatic video quoting him on his twitter page, sorry guys i had no idea saw this stuff for the first time myself. i am so sad. there is much beyond my control right now. >> it is not marijuana. she is not a junky. >> how do you know it's not marijuana? >> apparently whatever substance it is it is not covered under those laws. even if it was geraldo you said it best how do we know? it it can't be prosecuted on that basis. >> only determined marijuana if they tested it or tested her urine. >> 30-days later they are not going to find it.

>> her parents are splitting up going through stuff they are experimenting. they should spend time with her nevertheless. >> as we approach christmas to change the topic i want to leave you on a report for the charity designed to bring our boys and girls, men and women home, gi's home for the holidays from their far off bases here is heather. >> the cruise family is a close knit clan from outside philadelphia brothers always and forever pretty much says it all. normally there's three brothers. brendan cruise isn't here. he's serving the air force in japan. if it hadn't been for nonprofit let's bring them home he wouldn't be coming home for christmas. >> i was surprised. i didn't expect him for the holidays. >> the military offers space available travel letting troops jump on available transport. it's tough to get a spot. >> when they go on the list it goes in the order of the rank.

lowest rank means the lowest order. usually they don't have a chance of getting on that plane. >> nonprofit helps those in the lowest ranks get home for the holidays. >> it would have been close to $5,000 for getting a ticket this time of year-round trip from japan. there's no way he could do that on his service income. >> these are the people defending our country and do the work that most of us don't want to don't. they are not getting paid enough. all they want to do is see their family. >> some haven't seen their family in 2, 3, 4 years. some haven't seen children grow up. >> it is the smiling faces of these guys that let's bring them home from thinking about this season. the sons and daughters of the heroes who selflessly give themselves every day to make sure they grow up in a better world tomorrow. >> heather thanks a million there. if you would like to help out by donating cash or frequent flyer miles or find out your serviceman or woman is eligible

go to

>> good morninnday morning, everyone. hope you had a great weekend. i'm gretchen carlson. how much do you hand over in taxes? that's taking center stage in washington this morning. >> i believe that this will pass. >> i think we're going to get strong support on both sides of the aisle. >> the senate seems to be on board. but can the house derail this deal?