>> gregg: hello, i'm gregg jarrett. welcome to a brand-new hour inside america's news headquarters. >> heather: i'm heather childers. new talk of a possible deal to extend the payroll tax cuts but what would that deal include? >> gregg: new reaction to one of the largest protests in moscow. russia's president is speaking out. they may not like what he what he is saying. >> heather: disturbing details emerging that people say killed a cop at virginia tech. >> gregg: first we begin with

the race to the white house. next ten days could be the most critical in the gop campaign with the iowa caucuses a little more than three weeks away now. the race is entering a crucial phase coming off last night's very fiery and at times extremely personal republican debate in iowa. steve brown is live in des moines. steve, a lot of people are talking about mitt romney in last night's debate but not in a good way. how bad was it? >> reporter: bad enough because people here in iowa are talking about. exchange was between him and perry. they have been going at hit about healthcare and individual mandates for healthcare. it appears that mitt romney wanted to put a stop to it by offering a wager. >> you have raised that before, rick. it was true then, it was true now. >> rick, i tell you what,

$10,000, $10,000 bet. >> i'm not in the betting business. >> reporter: romney spokesman says this is something that people do sometimes when they are convinced they are absolutely correct on a particular issue but it is not playing well here in iowa. political observers saying this is not helpful especially in the context of just 23 days for caucus time. >> gregg: you have so many people unemployed and $10,000 means a lot to them. on fox news, they were taken aback by what you just aired there, the bet by romney. is perry trying to make use of it on the campaign trail? >> sn. >> reporter: absolutely. here in iowa down in ames, home of iowa state university. perry was out at a very packed venue and said $10,000 is not a lot of money.

the average wage around here in this particular state is about four times, about $40,000. rick perry is making a play for those people, those blue collar voters to try to boost his way back into the tops of iowa and using last night's event that he gets a second look by the voters. >> gregg: very interesting debate. steve, thanks very much. the candidates will have yet another chance to make their case to the voters this coming thursday. the next gop debate scheduled for 9:00 p.m. eastern time right here on the most powerful name in news, on fox news, and you can see it on foxnews.com. >> heather: that will be a good one. battle extending, republicans and democrats pushing completing plans in how to get it done. president obama is promising to delay year end vacation for himself and lawmakers if a deal is not reached first.

steve is live for us in washington. so steve, when will congress work this thing out? >> reporter: by the end of this week according to one senate source. they might have to work next saturday to get it done. payroll taxes and unemployment insurance and oil pipeline is tied together. nobody really disputes the need to keep the payroll tax cut on the books at least for now. >> i believe we should extend the payroll tax holiday another year, avoid a tax increase on working people. i agreed with senator reid that we ought not to do it next year. >> reporter: republicans are including the measure to speed up construction on a key stone pipeline with the president threatening a veto if it happens and bill would be paid for in different ways, democrats propose taxing the rich and republicans would put the burden on federal workers and medicare workers. >> heather: how does the

electoral politics figure into all of this? >> reporter: nobody wants to be held responsible if payroll taxes have to go back up. some see the debate has highlighting the differences between democrats and republicans. >> this is make or break moment for the middle-class. to this point, the republicans have consistently said they will refuse to increase the taxes on the wealthiest people in america one penny, if that is what it takes to make sure that working families get a payroll tax cut. as the clear defining moment contrast between the parties that the president has made clear. >> reporter: extending unemployment benefits also on the table here in and the two sides have different plans for achieving that. >> heather: steve reporting us live from washington. thank you. while the republican candidates duke it out, a new poll out shows that lawmakers and congress should be worried about losing their jobs.

american voters view congress is at an all-time low. that not surprising, 76% believe that most members do not deserve to be re-elected. only 20% say most members should be re-elected. >> gregg: the united states supreme court could announce sometime tomorrow whether it will consider a challenge to arizona's immigration law. you may recall that controversial law became a political flash point sparking widespread protests. obama administration is challenging whether states have the authority to make and enforce their own immigration laws claiming that is the job of the federal government. arizona's law requires state and local police to check the status of anybody they think is in the country illegally. they have the ability to check the status of anybody they arrest. immigrants are required to carry papers with them. the high court, of course, has agreed to hear a challenge to president obama's healthcare

law. >> heather: new developments in protests in russia. tens of thousands are rallying including this massive demonstration in moscow. they are demanding the immediate departure of vladimir putin following allegations of voter fraud. now president dmitry medvedev is calling for a government investigation into last week's parliamentary elections but he does not agree with the allegations. an announcement that was met with backlash from angry protestors now scheduling more demonstrations throughout the month. in syria, eight people are dead following renewed violence this weekend. round of gunfire in the streets, government troops cracking down on former soldiers who have joined the resistance. now word that violence is spilling across the border into jordan. that is where a dozen syrians,

attacked the embassy there on monday. syrians are set to vote in municipal elections, a first test of the reforms promised since the uprising begin back in march. >> gregg: to iran, the nation's elite revolutionary guard saying it will not return that american surveillance drone captured last week. iran calling the violation of the airspace, quote, a hostile act and warning of a bigger response. former ambassador john bolton says that incident will make it much harder to deal with iran going forward. >> this is going to enhance iranian revenues substantially or put them in a good bargaining position with russia and china. it highlights once again why the policy of economic sanctions and the hope of getting iran to a diplomatic table is doomed to failure. >> they voted to make it more

difficult for iran to get a hold of financial system. it could ail yent allies and drive up the price of oil. drone incident raising serious questions. are we already in a covert war with iran? jennifer griffin reporting. the captured of a downed drone revealed that u.s. was flying spy air missions actively gathering information over iran. it's the latest of mysterious events including explosions and assassinations targeting their nuclear scientists. they are saying covert war against the nuclear program is under way. it begin more than a year ago. first a cyber attack. 1,000 centrifuges destroyed. a dozen mysterious explosions at a scientist's home. one is wounded by a car bomb.

an explosion at a secret missile base and head of a long-range missile program is killed. two weeks later there is a blast at a uranium plant. satellite images show buildings that had been there for 15 years near the plant. they disappear after the november blast. >> the fact the reports about explosion somewhere near the nuclear site warrants more scrutiny when it comes to the facilities that used to be standing but is now gone. >> reporter: the explosion near tehran not only killed the head of the missile program that was developing missiles that could strike israel, it also killed 17 members of iran's revolutionary guard corps. there are indications that iran was testing a new solid fuel rocket. >> they were doing the final preparations, fully loaded with a warhead and fuel and it exploded.

with it it took the entire crew of the missile team including the top commander and top missile expert. >> reporter: now with tensions at an all time high the family of f.b.i. agent robert levenson released a video they received a year ago. in it he is pleading for help. >> they are honing plans concerned that israel will decide covert action is not enough and strike iran's nuclear program itself. at the pentagon, jennifer griffin, fox news. >> heather: disturbing new details about the man police say killed a cop on the virginia tech campus. >> gregg: shocking report just how much money corporations spend in lobbying in washington and how little they pay in federal income taxes. >> heather: here a story we love. a soldier surprising his daughter on the soccer field. a reunion that brought tears to

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>> heather: welcome back. taking you to mexico where they were rocked by a powerful earthquake that left three people dead. the 6.35 quake struck last night causing buildings to shake and rattling pacific coast of acapulco. it resulted in falling debris. the depth at which the quake struck lessened the impact above ground. >> gregg: well, now the old saying, two things in life are certain, death and taxes or so we thought. because now there is a new report by campaign finance reform group analyzing 30 of the country's biggest companies and it finds they are actually spending more money lobbying

congress than they are paying federal income taxes. to help us put it in perspective. brenda butner. anchor of bulls and bears every saturday right here on fox news channel. $164 billion over three years and yet they paid more in lobbying than they did in taxes. how much are we talking about? >> it's a lot of money. basically some of them aren't paying any taxes. they are getting refunds. i think it combined they were spending $400,000 a day every day on lobbying. now there is nothing illegal about this. i want to put this right out. we have a 35% corporate tax rate which is among the highest in the world. so there is something to be said about maybe revising the whole tax structure. >> gregg: here is a run down.

i mentioned $164 billion top 30 corporations that is their profit. they paid zero federal taxes. fed ex paid 1%. they didn't have to pay 34% of corporate tax. is what i want to ask about. taxpayers paid the top 30 corporations $11 billion, my money went to the corporations? >> the only criminal thing, it's not illegal but criminal in the larger sense, some of these companies are laying off people especially g.e. when its ceo jeff is on the board of the president and he is supposed to be telling president how to create jobs when, in fact, he is handing out pink slips.

>> gregg: here is the big three that spent on lobbying. we're talking about spending $400,000 a day to lobby congress and here are the top three. g.e. spent $84 million to lobby congress. red cross is spent $54 million and boeing spent $52 million. >> it's on both sides of the i'll. bipartisan they want to get their way with congress. again, nothing illegal with lobbying. >> gregg: people talk about closing tax loopholes. i mean when a secretary or school teacher pays more in taxes than the richest corporation in america. >> it makes no sense. that really puts in black and white what is wrong with our tax code which is this big. when you really see what can be done when you have a tax in a corporation, the tax lawyers are

bigger than many small businesses. >> gregg: they are laughing all the way to the bank. lawyers make out like bandits, too. and americans, household net worth fell 4%, stock portfolios fell 5%. home values, .6% while corporations increased cash stockpiles to $2.1 trillion. why are they holding that amount of money. >> they are not spending it. they are afraid to hire in uncertain environment. >> gregg: they don't know about regulations and burdens of healthcare law. >> they don't know what is going to happen to taxes. right now there is so much uncertainty in congress and with the president. they don't know what to do. they are sitting on it. >> gregg: that is not likely to

change until an election in november of next year? >> even then, who knows. congress is going which way. they can't decide whether or not they are going to give a small payroll tax cut to people. >> gregg: brenda, thanks very much. >> heather: if you happened to sleep in on black friday, maybe i forgot to log in on cyber monday. you could get a second shot in that once in a lifetime deal. brenda butner i'm told you will be back with cyber deals in the next hour. >> gregg: presidential candidates duking it out. did you see last night's debate? could a republican who is not currently running still enter the race and win it? we're going to take a close look at that after the break. i think the voters are wise enough to figure that one out. i have been of the opinion if you cheat on your wife you will

cheat on your business partner.

>> heather: welcome back. it is the board of trustees of the hour, time for the top of the news. iran vowing it will not return to u.s. drone that went down last week inside its borders and calling the incident a hostile act. >> russia's president reacts to massive protests calling for

vladimir putin's departure. dmitry medvedev is ordering an investigation into voter fraud. >> and gunman authorities say killed a virginia tech police officer apparently visited the same shooting range that killed 32 people on the campus in 2007. >> gregg: well the gop candidates firing away at the debate in iowa last night. here are some of the highlights. check this out. >> individuals who have been fidelity with their spouse sends a powerful message. if you cheat on your wife or spouse and why wouldn't you can cheat on your business partner or anybody for that matter? >> i think character issues do count. i think all of your record, personal as well as political record is there for the public

to look at. >> if you look at newt-romney, they were for obamacare principles. if you look at newt-romney they were for cap and trade. if you look at newt-romney they were for illegal immigration problem and if you look at newt-prom any they were for the 700 billion dollars. bailout and they are also for the payroll extension. >> i want to extend the tax cut because you raise the taxes. i want to pay for it. it's not that difficult. in my budget i want to cut hundreds of billions of dollars from overseas. >> we have differences on some issues but the real difference, i believe, is our background. i spent my life in the private sector. i understand how the economy works. i believe that for americans to say goodbye to president obama and elect a republican, they need to have confidence the person they are electing knows how to make the economy work again.

>> let's be candid. the only reason you didn't become a career politician is because you lost to ted kennedy in 1994. >> gregg: as you saw, pretty fiery last night but could a republican who is currently not running still enter the race and could they win it? let's bring in do you go and tammy. let me start with you. nate silver man has a blog. we read it and he got us thinking about this subject here. let me quote him. republicans are dangerously close to having none of candidates be acceptable to rank and file voters and the party establishment. it seems possible republicans might begin to look elsewhere. what do you think of that?

>> the only real way to look else, it's clearly a number of candidates republicans indicated they like. the problem is the convention, it would be a disaster for the republicans. here is my theory. >> gregg: it wast >> gregg: it wasn't a disaster back in 1980? >> this time is really the general election. republicans and the candidates are not just seeking to the republican base it's all american. this means by the time the nomination happens they have to convince everyone. if they don't and send a message they are divided or don't have their own act together, americans will then with the incumbent and cultural icon. it's imperative that they show in day one they have their act one. >> gregg: it was controversial in 1980 and 1976 for the democrats. i checked this today, it was all front loaded caucuses in january and february now it's pop sit.

you have all these delegate rich states, winner take all happening in april, may and june. couldn't somebody jump in and win. >> somebody could jump in and win, but if newt gingrich who holds double-digit leads in iowa south carolina and florida and is competitive in new hampshire, if all that happens, unlikely that will be the result. however, if newt doesn't meet his poll expectations and you have a split result, say two and two in terms of the first four states, it's entirely within the realm that the scenario you are laying out could happen. >> gregg: tammy, rose cook who at the university of virginia, wrote an interesting column. another establishment or conservative republican could enter the race in early february and still compete directly in states with at least 1200 of the

2,282 delegates. many of them will be up for grabs after april 1st when winner take all is possible. in fact i look this up. new york, pennsylvania, indiana, california, new hampshire, ohio you can jump in as late as february and still get on the ballot in all those delegate rich states. >> the issue becomes what about a national candidate. the nature who you are appealing to. also again, the message that the republicans can't even find a candidate that can appeal to the republican base let alone to the independent base but ultimately it comes down to newt as high as he is in the polls because of the overwhelming tea party support. he has a tendency to self-destruct. he could very welcome through.

>> gregg: doug, a late candidate would have to have several things. instant name identification. he would have to haver men's fund capability and organizational skills. jeb bush? hugely popular. >> his greatest disability is arguably his last name but of what doing what you describe, yes. >> gregg: paul ryan? >> on the controversial reform to medicare. >> gregg: mitch daniels? >> it would generated huge enthusiasm. >> gregg: tim pawlenty who dropped out? >> don't think that is likely. unlikely to succeed. >> chris christie? >> he said the smartest thing, he didn't think his demeanor was the right for the national field. with all those people, romney is not beating gingrich, of all

those names, none of those will either. i think this is a key factor that people want to ignore but it is the answer to why gingrich. >> gregg: how about a guy whose office is next to mine, mike huckabee? >> i think americans look and to see if somebody has the willingness to run from the beginning. this is a fundamental election. we have many judgments about pawlenty, clearly judgments, pawlenty moved out because he did poorly. >> gregg: could sarah palin run as an anti-establishment candidate? >> a lot of people want her to reconsider. i think there is such a significant difference when it comes to commitment and early states. i don't know how you can say in this period of time where we have to run against as conservatives o an incumbent cultural icon, the person who wins this nomination has got to be answerable to the whole country.

stepping in such a late point would be a mistake. >> gregg: doug, how much did romney hurt himself last night with $10,000 bet? how would you handicap what tammy just said about newt self-destructing? >> two things, romney was playing to stereotypes. he is affluent and wealthy and he conducts principally to hedge funds and $10,000 bet plays that. for newt, he is arguably older and wiser but very creativity is his weakness. a 47-17% lead with tea party voters makes him at this point. >> almost unbeatable. but newt gingrich, his element is he has matured and grown. this is his opportunity. i think he is handling it well. >> gregg: he has no organization in the state of iowa which demands organization.

>> if you have the right message you can trump organization. >> gregg: very good. thank you. don't forget, fox news sunday continues it's 2012 series next week. host chris wallace sits down with mitt romney right here on the fox news channel. >> heather: fast heartbreaking sign of the times. children writing letters to santas asking for shoes and warm coats instead of toys this year. to help out the u.s. post office is kicking off operation letters to santa. casey stegall is live in los angeles how we can brighten a child's holiday. >> reporter: we all know the jolly old elf is pretty busy and he needs help reading all the letters coming in from the good

girls and boys. he is turning to the u.s. postal service for help. some of the letters are sent to the north pole are intercepted by post office staff members where they sort them into wants and needs. they hide all the personal information. then volunteers like you and me can go to a post office location pick out the wish list they wanted to f. the letters in the program do come from children in need and they are not necessarily looking for toys, many asking for basic necessities, like clothing, shoes, blankets and food. >> you see such a great need that you find that you want -- you don't want that child to be let down on christmas, that their prayers will be answered. they are begging santa claus for help. >> a lot of the letters do identify they are struggling. that there is hardship. some are homeless even. some don't have a place to sleep

or have anything to eat, especially during this christmastime. >> reporter: this is the final week you can participate in operation letters to santa. 75 post offices around the country are participating and you can visit a website, b and elf.org. once the volunteers are done shopping they drop of gifts off back to the post office with plenty of time to get them to the north pole and be loaded on the sleigh. >> heather: thank you very much casey stegall. >> gregg: a surprise reunion between a military dad and his daughter on soccer field. the sergeant is with the army national guard. he's been in iraq for the better part of a year. he got a return trip to georgia where he and his wife planned a

surprise for their daughter shelby. they held play for a bit. he was spending three days with his family before heading off to fort hood. >> it brought teors to my eyes. i don't know about her, it was the best for me. >> gregg: he says he is not sure when he will be home for good. it depends on whether he needs surgery on his ankle. >> the supreme court is preparing for a landmark case, a challenge to healthcare law but there are calls for not one but two justices to recuse themselves from the oral arguments and decision. we're going to tell you why when our political panel weighs in. >> heather: big issue, gregg, i know you've been waiting to hear about this. prom night. what michele bachmann said about the dance and what her daughters are not allowed to do. >> gregg: come on.

>> heather: catching some flack among young women. our power panel weighs in and maybe gregg, too, next. of a he? campbell's healthy request soup is delicious, and earned this heart, for being heart healthy. ♪ feel the beat? it's amazing what soup cano.

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of a pain free holiday. ♪ this season, discover aleve. all day pain relief with just two pills. >> heather: republican presidential candidate michele bachmann making headlines over comments she made with sean

hannity. she says girls don't ask boys for dates. they waited for boys to call. let's see if our power panel agrees with that. k.t. mcfarland and host of fox news and judith miller, investigative reporter and fox news contributor. >> first topic, what do we think? should girls ask boys out? she was referencing the prom when she was on the show. she said she doesn't allow her daughters to ask boys out. [ laughter ] >> i think times have changed. michele bachmann's generation. times have changed. i checked with my daughters before i came on and they said, mom, get with it.

girls ask boys out or you go with a group. >> remember the rules and sit at home and wait for a call. forget it. i say to my daughter the only limitations you have in this world is the ones you impose on yourself. if you want something, go for it. >> i understand old-fashioned but apply this rule to michele bachmann standard to professional life. michele bachmann would be asking for a man to ask her to run for president. >> so the women are out there for women rights. >> sean hannity is not liberal that encourages women to be aggressive. even she was surprised with her response. >> heather: so what about the prom? >> i asked my husband to marry

me. it's very open. you go for it. >> i think now, younger people tending to out in packs. if you want to take a pack to the prom, that is fine. >> that is kind of what i did. >> i went with a friend. >> i think he asked me because nobody else did. >> heather: next topic, how far we have come or not in california, home of silicon valley and many huge companies, glass ceiling may take a century to break or crack. according to new research from the u.c. graduate school of management. that would make meg whitman and former chief of ebay the rare exception rather than the norm. surprise with these statistics. >> not at all. top corporations across the nation is only 2% of women.

which is unbelieve be a they have 56% of our labor force are women. only 2% are in the upper echelons. >> a lot of reasons in the 50s and 60s. the women didn't have equal opportunities when they were starting out. >> where is the number ten years from now when women did 6 the opportunities. >> i think the problem is the slow rarity of growth. for a woman that is ambitious. i take notice of that hammer and glass ceiling. this is california, they are supposed to be progressive out there when it comes to equality and minorities. even worse, 40% of the worst companies tend to be tech companies where the growth is. come on. so many men are losing their jobs. so women are advancing in this

bad economy. >> it represents the fact that women have a different course, a different path to take. if you want to have a family, if you want to have kids, sometimes you have to step off the career path. >> there was an article that just came out here in new york, was it the "new york times" about megyn kelly. you can have the family and have the success and have the high paying salary, as well. >> and better employees are employers. >> heather: take note young ladies out there. nine-year-old boy suspended for calling a teacher cute. we'll give you the entire story and our panel will weigh in on that. stay with us. >> all i did was called them

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>> heather: welcome back. fair or unfair? listen to this. a nine-year-old boy is suspended from school for commenting on teacher's appearance.

here is what he said he said. >> i didn't think i did nothing wrong. all i do is call the teacher cute. >> heather: now a teacher who overheard him said he called her fine. fine versus cute. this boy has been warned in the past about calling other kids, quote, bad words. so let's ask our panel about this. so suspended from school for saying that his teacher is cute or fine or pretty. you choose the word. >> i read this story, i can't believe they had the boy suspended. it's not like he cursed her out, which children have been that vocal and have been disrespectful. should he have been suspended? maybe said a warning, don't say

it again. >> the teacher doesn't understand that is nine-year-old kids do and they giggle and walk away. it's simply absurd. school are having problems other than that. >> also there was an odd conversation that shoes supposedly the teacher had with the mother of this child. maybe it's okay in your culture but not okay here. what if she -- i'm with the other two ladies. this is a bit of overreaction. >> heather: what would the bigger issue be? when you have this child and this particular incident. is this an indication of how schools across the board are so worried about lawsuits and things like that and political correctness? >> i think judy's point. if there were racial overtones and they had this discussion with the mother.

my child was targeted because of the color of his skin. maybe there were some racial motivations underlying. we won't know. >> bad word or other occasions, what does that mean. >> little boy's statement. nine years old isn't that young. it really isn't. it would depend on how he said it. apparently i take the other side. [ laughter ] >> there is little boy that got in trouble. my teacher is so fat. [ laughter ] >> fine, pretty? >> but suspending a child for that? come on. where is the christmas spirit when we need it? where is the tolerance. if people don't tolerate a

child's one word? >> heather: grounds for a lawsuit from the parents, do you think? >> i think if there was some discussion with the mother, they certainly talked about it. it may be okay in your culture but there may be racial overtones. >> heather: thank you so much for joining us. we appreciate. gregg, what is up. call your teacher cute? what is wrong with that? i had a bunch of cute teachers, too. gop presidential hopefuls are battling it out in iowa, who stood out in last night's debate and why the next ten days could be make or break for the race for the republican nomination. ♪ the weather outside is frightful ♪

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>> heather: hello, i'm heather childers welcome to a new hour. >> i'm gregg jarrett. glad you with are us. cyber monday is coming twice this year. businesses slashing prices again. there are worries the sequel will not be as good as the original. >> heather: isn't that always the case. the best cure for a hangover. we are not talking about some homespun remedy this is grounded in science.

>> gregg: the next 10 days could be critical for the republican campaign. with iowa voting in a few weeks and last night's debate fresh on the mind of voters. steve brown is there now. a lot of barbs aimed at gingrich last night. did any seem to get through? >> reporter: yeah, it is funny, good baseball analogy. a lot of teams that win the world series are playing well in september. a lot of candidates who do well in the early contests at their best in december gingrich appeared to be at his best last night. he did take more of his fair share of the slings and barbs s to brush those away and stay on point and on message throughout. that's one of two opportunities to try and knock gingrich off stride bring him back to the pack before the january 3rd, iowa causes. the next opportunity thursday at the fox news debate in

sioux city. couldn't do it last night what are your chances of being able to do it thursday? >> gregg: good point what about the guy polling in second place, ron paul? >> reporter: yeah, he's the guy that may not get a lot of national attention but he's got a lot of attention in iowa. he has one of the best if not the best campaign organizations in the state that is important. because it is better than what newt gingrich has in terms of ground troops in organizing here. remember, it isn't a process of going to the polls. it is trying to get people to go to one of 1700 locations around the state and stay for a couple of hours while they sort out who won that caucus. ron palm people have been at this for months. -- ron paul people have been at this for months. state party people say they are a threat to win it particularly if turn-out is low january 3rd. snow storm? could be a ron paul victory.

>> weather always has an impact. steve, thanks. the candidates will have another chance too make their cases this thursday the next gop debate scheduled for 9 p.m. eastern time right here on the most powerful name in news, the fox news channel and foxnews.com. >> heather: republicans and democrats going head-to-head, imagine that, over plans to extend the payroll tax cuts. president obama turns up the pressure threatening to delay holiday vacations. steve centanni is live in washington with more on that. first steve welcome. what can we expect this week? >> reporter: a lot of political jockeying. the payroll tax cut expires at the end of this year. the two sides still have very different ideas of now go forward. republicans want to tie extension of the payroll tax cut to the keystone pipe from canada to texas. the president has delayed a decision on construction, pending further studies. but, republicans say it will

be a big boost for the economy and the construction needs to go forward. mitch mcconnell may use that pipeline as a bargaining chip. >> we have the keystone pipeline in there a shovel-ready project, the biggest and most important ready to go project in america. wouldn't cost the government a penny, not one penny. three years of environmental studies have already been done. the secretary of state was ready to sign off on it. the president pulled it to the white house and delayed it for a year. >> reporter: president obama has threatened to veto the payroll tax cut extension if the keystone pipeline is tied in. >> heather: how would this continued payroll tax cut be financed? >> reporter: that the big sticking point. republicans want to continued freeze on federal workers a pay. democrats want to rise taxes on hiring americans. for both sides appealing to voters next year is part of the political calculation.

>> this is a make or break moment for the middle class. to this point, the republicans have consistently said they will refuse to increase the taxes on the wealthiest people in america one penny, if that's what it takes to make sure working families get a payroll tax cut. it is a clear defining moment, contrast between the parties, that the president has made clear. >> reporter: house vote on the payroll tax cut could come this week. extension of unemployment benefits also on the table can each party proposing different plans for achieving that. >> heather: thank you steve. >> gregg: because there are key differences between the payroll tax cut plans put forth by democrats and republicans, including what it may mean for you. democrats' plan would offer $1500 cuts to folks earning $50,000 a year while those earning more than $200,000 would get $6,000. the gop plan would offer cuts

of 1,000 for those earning $50,000 a year those earning more than $200,000 a year would see cuts of $4,000. with all those plans out there voters worry whether lawmakers are capable of finding the solution. latest fox news poll showing 71% of people think congress is just too dysfunctional, 21% think they are a divided government. just as the political system intended -- >> heather: iran refusing to return a downed u.s. drone calling it a major victory. iranian state tv broadcasting this video right here, last week, of the secret cia drone, still intact despite iran's claims of shooting it out of the sky. iran is now calling on the u.n. to condemn the u.s. for flying it into iranian air space. the u.s. military says the

aircraft probably trade into iranian air space after suffering a malfunction. >> gregg: the united states is closing a base in pakistan used to service drones the last flight carrying american personnel and equipment departing the base today leaving the place empty. now the pakistani army is taking over that space, close to the afghan border, pakistan ordering the americans out in retaliation for us air strikes last month that accidentally killed 24 pakistani soldiers. >> heather: here's a name you may not have heard for a while. manuel noriega expected to face justice for the first time in his home country. he left france for panama early this morning. he been serving a sentence there for the past 17 years. before that he served three years in an american prison. noriega was captured in 1989 during a u.s.-led military invasion. now he's back in panama where

he faces back-to-back sentences for allegedly killing two political opponents in it 80s. -- in the 80s. >> gregg: it was a nice day do some holiday shopping, clear skies over times square right now. there's a picture on the right. people are bundled up out there against very chilly temps. i think today was the high of 35. what do we expect for the rest of the week? maria molina with more. we are expecting quiet weather across most of the east for most of the workweek. the exception of course, the state of florida right now unsettled weather all things to a stalled frontal boundary producing strong rip currents east coast of florida dealing with rough surf and heavy downpours, seven inches of rain across eastern parts of the state yesterday that is continuing to pile up and seeing showers across portions

of southern alabama, as well as peninsula of florida. westbound texas go much needed rain today most winding down unfortunately. we did receive reports shy of two inches of rain out there. we'll take it, even though that is not going to put us out of any drought. across parts of the southwest, california, arizona, new mexico, relatively quiet today. quiet weekend. we have changes in store coming up as we head into monday and tuesday, major storm going to take shape. high temperatures for tomorrow 40s across parts of the four corners, 64 phoenix, it going to get colder. 40 our high in new york city. here's what is going to happen across parts of the southwest new system will impact late monday and tuesday bringing in a lo lot of heavy rain flooding across portions of arizona into tuesday evening also heavy snowfall out there we have winter storm watches and warnings across parts of

southern california, arizona and new mexico, where some of the higher elevations could get as much as 16 inches of snowy is good news for ski resources not good if you are traveling, i-5 will get snow. >> gregg: get your skis ready l.a. the high yesterday was 70°, it dropped by 20! >> most of the workweek, grab your jackets. >> thanks. >> we have to check in with casey stegall he's up next he is going to talk about a heartbreaking sign of the times this year. children writing letters to santa asking for shoes or warm coat instead of toys. but, there is hope. the u.s. post office is kicking off operation letters to santa. casey stegall live in l.a. to tell us how we can bright humanitarian a needy child's holiday what is the -- brighten a needy child's holiday. how is the weather?

>> reporter: it is get. again we hate to brag, beautiful sunny skies, although it is going to get colder as maria was saying. we are headed into christmas, can you believe it is already here. santa is extremely busy this time of year. he and his elves are getting help if the u.s. post office as part of the -- from the u.s. post office, more than 70 post offices around the country allow volunteers, member of the pub to intercept some of the envelope ofs on their way to the north pole from children in need. people like karen walker, then pick those letters and do a little shopping on santa's behave. >> they don't want to ask the parents because they know their parents are working so hard to try and survive. those are the ones that really touch you that you want to give them something special at christmas. >> reporter: this is the last week you can participate in the program. once the volunteers are done

with shopping, you drop the gifts back off at the post office, a few days before christmas so they be delivered in time. >> heather: what type of things are kids asking for? >> reporter: a lot of the letters are asking for the usual toys and electronics. then there are those letters that really pull at your heart strings. some are asking for heat. they are asking for a job for their parents. they want clothes. shoes that fit. stuff that many of us take for granted around the holiday season. >> please, i need clothes and warm blankets here, please santa that's what i want for christmas. you read a letter like that and it is just an arrow to the heart. >> reporter: if you are watching and would you like to help, you can head to a website called beanelf.org there you can find the specifics about the post

office branches that are participating hours you can donate online it 'tis the season for giving. >> heather: absolutely. i covered the story last year in new york city reading through the letters really pulls at your heart strings you can tell when they are written from little children. thanks casey. >> gregg: the snowball express. bringing holiday cheer to military families who have lost loved ones in iraq and afghanistan. this program really helps families try to heal at one of the most difficult times of the year for them. sabrina rodriguez has that story. >> reporter: at first look, and listen, it seems like any other morning but listen closely and you will hear a sound that isn't so common. maybe not at the airport but for these families because this trip has a heavy price tag. >> it is for families with one of the parents has been killed

in the war. >> reporter: the snowball express. once a year american airlines along with other sponsors team up to send these families on a five-day trip. >> it is the best trip ever. >> we look forward to it all year. it is really speciallism there's nothing else like it. >> reporter: this is julie and her son's third trip. last year they went to dallas. >> we went to a rodeo. >> reporter: while that was his favorite part. >> we walked down the street in texas and people are there with signs and flags andcg thak yous and tears. >> reporter: after everything. >> kids love to get together with other kids that are like them. >> reporter: that support and compassion goes a long way. >> what a great story. 1700 kids and spouses of fallen soldiers are participating this year in dallas, texas. >> heather: more than 3,000 people participating in this next event hitting streets of paris for the santa claus

charity race. santa suits the popular choice of costume, lots of red and hats. the more creative outfits includes presents, christmas tree running by. the adults whizzed through their own race while the kids took it easy and the children and parents race. today's event was for a good cause raised over $5,000 u.s. dollars for children's charities in africa. >> did you see all the santas in manhattan yesterday? >> heather: i didn't. >> it is for charity, a pub crawl. everybody comes into manhattan dressed as santa clause, i rode the train with them. it was a far more raucous train ride home after the pub crawl. >> were you on the train to or from? >> both ways. going home boy, some stuff was happening. >> heather: but you made it back safely today. >> i did, yes i'm not sure about the santas. holidays may come once a

year but the where begins keep coming. next brenda buttner explains how you can still save big bucks on last minute gifts. >> heather: deal of a lifetime, again. plus, former head football coach joe paterno back in the hospital. we'll tell you why, next. [ male announcer ] drinking a smoothie with no vegetable nutrition? ♪ [ gong ] strawberry banana! [ male announcer ] for a smoothie with real fruit plus veggie nutrition new v8 v-fusion smoothie. could've had a v8. spark card from capital one. spark cash gives me the most rewards of any small business credit card. it's hard for my crew to keep up with 2% cash back on every purchase, every day.

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>> gregg: welcome back. stories making headlines now: joe paterno has been hospitalized after breaking his pelvis in a fall at his home. he will not need surgery. he was fired by penn state last month in the wake of the child sex abuse charges against his assistant jerry sandusky. >> tanker exploding in australia driver unloading fuel at a gas station suddenly the truck ignited driver suffering on his arms and legs. >> a long island man charged with pointing a ha -- a laser at airplanes and a police helicopter sent to investigate. >> heather: the holidays come just once a year. those cyber money -- monday deals are so nice some are doing them twice. cyber monday take two

scheduled for tomorrow. after this year's sales saw record numbers many are wondering how low will retailers go? joining us senior business correspondent brenda buttner. thanks for coming back brenda. cyber monday, black friday were by all accounts very successful this year. why do it again? >> there's been a little lull and december been that good, please stop, i can't take this any more. my kids keep saying there's a big sale tomorrow. so there was a lull. consumers have pretty much burned through their money. retailers need more. and they've got to keep going. so they are coming up with all these ideas. like it is not quite christmas. it is not quite the last minute. they've come up with this cyber number two the sequel. >> heather: we all know sequels do not tend to be as

good as the originals. can we expect the prices to be slashed as significantly as they were the other time? >> the problem is margins. retailers have really cut into their margins. they are facing on one side the fact that commodity prices have been so high for them, they are not getting many profits because they are slashing prices, commodity prices are so high they are making like this much money. as they keep slashing prices, macy's slashes a price, so then lord & taylor has to slash, if target slashes its price kohl's got to slash its price. so it is going to be tough on retailers this holiday season. >> heather: how do they turn that around? >> volume. they gotta bring people in. they've gotta bring lots of people in that's why they are coming up with these gimmicks, that's what they are.

part of the problem is, the online discounters like amazon are coming up with new ideas. they have this app, where they invite you to go into the stores, use it like a show room, look at the things and buy from it us, because you don't have to pay tax. they also say, go ahead and scan the item, tell us the price, we want to know what it is, we'll beat it and give you a coupon. there's a lot of stuff going on between the brick and mortars -- >> heather: we talked about that yesterday in terms of the brick and mortar stores and what they can do to beat the online stores when it comes to being able to do things like that. what is your opinion? what do the brick and mortar stores need to do? >> some of the brick and mortar stores have online components. it is hard to beat somebody

like amazon which is purely online they sell everything. and you just don't have to pay tax. and when they are -- when you don't have to pay shipping which is cutting into their margins, but they the volume -- >> heather: they are now willing to pay that tax there is a bill before congress. >> there is that bill. we'll see how far that goes. >> heather: inventing these sales to get people into the stores is the name of the game now. gap, they had the -- one of their subsidiaries, banana republic, part of the gap chain, it is not black friday sale. >> i think there is going to be one that is, it's christmas, come on in as early as you can! >> heather: no. then we'll be talking that. thank you brenda. tomorrow, take two gregg are you going to shop online? >> i shop at target and

everybody says i look like it. >> heather: in your pajamas we heard. >> gregg: that's another story. one industry has seen a surprising boom. next find out how you can cash in on all your old valuables. >> plus, digging into the past. republican candidates going off the -- going after the former house speaker last night. could personal problems from gingrich's past now help steer his political future? >> speaker gingrich and i have a lot of places where we his idea to have a lunar colony that would mine minerals from the moon. i'm not in favor of spending that kind of money to do that. my name's jeff.

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>> heather: welcome back. bottom of the hour that means time for the top of the news. gloves coming off at the republican presidential debate last night at times becoming personal nearly five on one with newt gingrich taking a lot of heat. >> iran refusing to give up the u.s. spy drone that landed inside its borders calling it presence a hostile act. three are dead following a magnitude 6.5 quake in western mexico, authorities saying most of the damage was caused

by landslides. >> gregg: well, it was very interesting watching last night's gop presidential debate. the front-runner newt gingrich speaking out about major concerns over his past. >> i think people have to render judgment. in my case, i said upfront openly, i've made mistakes i've had to go to god for, forgiveness i've had to seek reconciliation. >> gregg: he zoomed in on his wife while saying that gingrich coming clean, admitting i made errors, personal, professional. as many mothers who stayed up late with worry will tell you sometimes the bad boy is the one people want the most. the one they like the most. is that enough for a nomination? it is the subject of michael goodwin's column today. a fox news contributor and "new york post" columnist. you caught me by surprise and

got me thinking when i read your column. i want to quote the front end of it. "gingrich's history of self-aggrandizement influence peddling and the hypocrisy of carrying on an affair while leading the charge against president clinton for the same thing constitute the heart of the case about why he cannot be the nominee." then you turn this conventional wisdom on its head by saying with gingrich there's a catch. what is it? >> voters aren't listening. he has surged to the front, despite this personal baggage that i believe a lot of people know about. not everybody of course. but i think he is such a well-known figure in american politics. even lately things that came out about him taking money for working for fannie mae or freddie mac and saying he was a historian which clearly wasn't true, didn't matter he

just went right over it, people seemed willing to forgive him a lot of things. >> gregg: is there a humanness to him complete with all kinds of mistakes, warts and all, that people find appealing? >> sure, i think that is the appeal of the bad boy. that he's the one who causes the trouble, makes the ruckus but can hit a homerun at the bottom of the 9th, at the same too. . that's the kind of hero a lot of people want willing to forgive more if they like more things about you. there's a lot to forgive with newt but there's a lot to like. right now the liking part winning. >> gregg: your colleague called that response last night that we just aired, brilliant. was it? >> i think it was very good. he's front and center, didn't try duck it he acknowledged it. americans want to give people a second, third, fourth chance. all you have to do is acknowledge it. i think it worked well. >> gregg: susan estrich would

disagree with you. she claims that insiders know what she calls gingrich's baggage but everybody else the voters don't. i'll quote her: >> gregg: she predicts that when voters begin to focus and they learn all this stuff, they are going to pick the safe albeit, boring mitt romney. >> well they might. i'm not predicting his going to win the nomination. there's a long way to go. i would point in response, there is one poll that came out three weeks ago that said agree or disagree, newt gingrich has a strong moral character. 9% said agree. then the started.

those people clearly know something about his personal life and still many of them are supporting him. >> gregg: you also argue in our column that romney's splashy ad in iowa showcasing himself as the ideal husband and wonderful father, not so subtle dig at newt gingrich's history of infidelity and three marriages and so forth. you say that's not gonna hurt newt gingrich. take a look at this fox news poll. it is true that 64% of voters say infidelity is not a deal breaker but a quarter of the voters 26% say it completely disqualifies newt gingrich as a candidate. in a close race, would you admit that this could hurt gingrich? >> sure. i think there are lots of negatives on gingrich as well as romney that could come back in the end and make the difference. for most republican vote there's is a referendum on barack obama. this is about who can best defeat barack obama and who

can give muscle to the republican conservative value system. gingrich for all of his baggage, does have a clear advantage over mitt romney among conservative voters. conservative voters don't trust romney or he would have locked this thing up months ago. >> gregg: what do you think of romney's infamous $10,000 bet last night? steve brown is in des moines says it is not going over well among residents and voters there. here we are, american so many of them are unemployed, they are broke, losing their homes, the average income, according to steve brown in iowa, $40,000. here's romney betting $10,000 cavalier >> i think a $10 bet wore been a better one. it is -- would have been a better within. it is an unusual example of romney showing the wealth instinct this was a mistake. >> gregg: it is a great column people can check it out.úq[9ñ

michael goodwin, thank you very much for being with us. >> my pleasure. >> heather: with just weeks before most americans start exchanging gifts, some shoppers are now finding they can easily turn their old valuables into new presents. rick leventhal is following this story, live from our new york newsroom. rick, the economy is just one factor driving the pawnshop surge. >> reporter: right. some credit reality shows like pawn stars and storage wars for helping to spark business. people may not had considered how much their stuff may be worth. skyrocketing price of gold is pushing people to cash in. tough economy pawnshops can provide a means to generate cash. more products on the shelves and more deals for holiday shoppers. store owners say they are america's best kept secrets for deals offering discounts greater than typical retail outlets sometimes half off on video games, jewelry and electronics.

one store in brooklyn reports a 25% boost people coming in to sell stuff and 10 to 12% increase in buyers. >> heather: the numbers are up nationwide? >> reporter: right. store owners are reporting that. they always see an uptick in december this year the increases are more significant in michigan, missouri, maryland traffic up 25, 40 even 50% over last year, selling, pawning, buying sometimes all visitor might pawn their grandmother's wedding ring use the cash to buy gift are and come back next ring with a tax refund and buy the ring back. >> people are now realizing that pawn brokers sell merchandise, they buy merchandise, and they make you a nice sizeable loan on merchandise, giving you the option to come back and retrieve the item for a very small interest rate. >> reporter: kenneth also told us, where else are you going to get a $1,000 loan in less than 30 minutes with bad

credit? they've been around more than 3,000 years it looks like they are going to keep cash going in. >> heather: got to watch those interest rates. i enjoy pawnshops that's where i got my guitar. >> reporter: i was wondering i much i might get for this bad boy right here. i have some shopping to do. >> heather: thank you rick. >> gregg: u.s. supreme court get i ready to here -- getting ready to hear a landmark case. should two of the justices recuse themselves from the case? should television cameras be allowed inside the highest court in the land? our legal panel is here to weigh in, next. i couldn't concei this as a heart attack.

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>> gregg: the president's new health care law going before the u.s. supreme court this springtime. right now critics from both sides of the aisle are calling for two justices to recuse themselves. alaina kagan because she was solicitor general in the obama administration as the law was being enacted. clarence thomas because of his wife's anti-obamacare activities. good to see you both. bob, let me first put it in layman's terms. if you have a dog in the fight you cannot be the judge in the fight even the appearance of bias should be sufficient to

recuse. as for kagan, look there is arguably some evidence that she helped craft a defense to health care. as to thomas' wife she was a paid advocate against it. aren't both arguably biased? >> for sure, there is a 1994 decision you are probably familiar with that addresses the judicial source rule i read that this afternoon. if you are so involved outside the court involved in a case where you are involved in it and understood it and knew the parties involved that in and of itself which i believe is distinguishable from justice top mass' position, his wife, gives rise to the -- thomas' position, his wife gives rise for disqual -- disqualification. growing if they do not recuse themselves will that taint -- it could delegitimize the

ruling. >> right that is what is at issue. whether there is going to be bias that is going to be part of the decision. it is such a critical decision. every american will be impacted with this decision. of course, any sort of semblance of bias. i have to agree with you bob, i don't think judge thomas necessarily should recuse himself. it is his wife's activity. no evidence that he was involved in his wife's activities. justice kagan undoubtedly. when she heard that obamacare had passed, she was jubilant. there's all these reports she was jumping up and down this is great. that's really those excited utter rans that's what she believes in -- utterances that's what she believes at her core. >> gregg: wonderful words are inscribed equal justice under the law. there's the supreme court

beautiful columns, there's a close-up. equal justice under law. if the public's perception bob is that of prejudice, bias self-interest, doesn't that diminish the stature of the nation's highest court? and importantly, the public's confidence in its pronouncements? >> absolutely. because of the opinion that the public has at large as to politicians, what we never want, we never want the supreme court of this country the highest court in the law of the land to be looked upon that they are in fact biased and they were so self-righteous they did not step away from something that inherently and intrinsicly is a by was. i'm hoping in this case, regardless of what she was before that she says i have to preserve the integrity of the court. >> gregg: if they both recuse themselves they arguely cancel out each other's vote assuming

one is a liberal and one is a conservative and their history with suggest that wasn't to ask you about televising the oral arguments. a recent poll found 70% of americans say, it is a good idea. in fact, there's a bill in front of congress, cameras in the courtroom act 2011 that would require televised coverage of the supreme court. goo or bad idea? >> excellent idea. there has to be -- transparency, especially in this case. unlike some of the other cases. other cases might be the rights of an individual. rights of individuals within a state. the rights of individuals in this entire country? we absolutely need to see the transparency. we need to see the dialogue. when this gets argued, you know it is going to be a full day, two days even of argument, i don't know how long, certainly, a sizeable amount of time. the united states the americans need to see what happens. >> gregg: bob, the great

supreme court justice brandeis said, and he coined the famous phrase sunlight is the best disinfectant what he meant was, openness and transparency are important in any democracy. if americans are able see with their own eyes, the process of justice unfold they will have confidence in the decision-making, you agree? >> i do. but here's my concern. i am concerned that we mix-up the separation of powers. i don't feel comfortable with it coming from congress, gregg. i think the supreme court of this country must remain autonomous. it should come from them. they could give them some type of resolution and how it is viewed upon in congress. i don't like the fact that it would be imposed on our

supreme court. if it comes from them, i'm more comfortable. but i don't believe that it any way -- [ talking over each other ] >> i think bob those are excellent points. they have complete autonomy. these are life terms. no one can kick these justices . there have been justices served in their late 80s, early 90s. certainly they have the autonomy, they have the life term. >> agreed. [ talking over each other ] >> gregg: guys we have to leave it at that we are out of time. we'll wait and see what happens. thank you both. >> heather: bye-bye hangover speaking of christmas and holiday parties. a new drug promises to help you shake off the pain following a night of drinking. you might have to wait to get your hands-on the new hangover cure. what you need to know about blowfish, coming up.

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whether it is eggnog, hotted to did or full on holiday party if you plan on

drinking any time soon -- >> i to two last night, i drank ginger ale the whole night. all those holiday spirits can make for a nasty hangover. there's a new drug that promises a cure. it is already out there over-the-counter. but, until new year's rolls around you have to keep drinking plenty of water. dr. lamb, before we get to this product called blowfish what is medically speaking, a hangover? >> the result of how the body metabolizes alcohol. the body's response reaction. when you drink alcohol you get a reaction from alcohol itself. then the body starts to kick in and it breaks down alcohol to a substance which is 30 times more powerful and irritating to the body. it is -- it makes you feel ill.

the hangover occurs at a time when there is no alcohol in your blood. it is the result of this acid and other things that go along especially when you drink drinks that have color to them. bourbon, brandies and you feel -- >> heather: different for men and women? >> the acid is the same. women are more sensitive because the way they metabolize alcohol. men have a higher greater tolerance. about 75% of people are going to get hangovers if they drink enough. 25% of people are genetically resistant. people of asian decent have higher incidents they metabolize alcohol differently they get this flush call the asian flush. >> gregg: this product is called blowfish. the fda not approving it, but is approving the ingredients. >> the ingredients, basic are aspirin and caffeine. alcohol causes people to get

fatigued have sleeplessness caffeine is a stimulant, induces inflammation, aspirin is an anti-inflammatory agent. it is reacting to what the hangover is. it is not specific for the chemical acid aldahyde. the fda approves the ingredients. if you have been drinking and smoking and have a stomach upset aspirin is not the best choice if you take acetaminophen is not a great choice because it can be toxic to the liver if you take too much aspirin that's not a good choice. there are other substances, we are working with one of the companies -- >> gregg: what is this? >> a product called mercy which you can purchase anywhere. the in yens were created to deal with the biochemistry of -- alcohol, b-have it minutes,

new tree yens, stuff that the -- through freeients stuff that the liver needs to replenish after you have been drinking heavy. if you drink too much you are going to pay a price. drink less is key. >> gregg: how about this mercy, can you get it? >> everywhere. >> gregg: tastes okay? >> tastes very good. >> heather: is that something that would benefit you if you were not drinking? >> it is a healthy drink. look, the goal is don't overdrink if you are drinking you are going to get dehydrated your blood sugar is going to drop, you are going to get jittery this will restore the body's biology sooner rather than later. >> gregg: now people are going to go out and buy mercy and mix it with vodka. >> no, the goal is, if you drink too much you are going to pay a praise. this will reduce, hopefully, some of the affects. the fatigue, the dehydration, the low blood sugar, the problem with sleep.

that's the whole purpose. drinkless if you want to have a little mercy with reference to the dehydration, good idea. >> gregg: i love the name. a very attractive woman with wings on the front. >> heather: it is about marketing. you think this pill, blowfish is about marketing. >> it is aspirin and caffeine, period. >> gregg: don't mix with the mercy with the vodka. >> right, of course not. >> gregg: that's not good. dr. lamm great to see you. >> heather: and do not drink and drive. >> gregg: fox news sunday with chris wallace is next. the droid razr by motorola.

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