on our broadcast tonight, pay more. that's what the president wants from the nation's wealthiest citizens. he faces a tough sell and tonight we have a reality check. do the super rich really pay less? the alzheimer's connection. tonight, the mounting evidence of a link between memory loss and diabetes. what went wrong? there are new clues and exclusive new videotape tonight from this weekend's air show disaster. two daughters of american politics gone at the same age after fighting separate battles with cancer. and look out below. it's up there in space, the size of a city bus and it's headed our way. of a city bus and it's headed our way. "nightly news" begins now. captions paid for by nbc-universal television

good evening. the president's thinking appears to be this -- we are in a recession with rampant unemployment. the government needs money. rich folks have done well and have a lot of money and need to pay more of their fair share in taxes. the president even invoked the name of a famous billionaire to help make his case. well, that's where the republicans come in. they have made it very clear they won't have it, and they insist it would be the best way to hurt the economy and slow down growth and investment. so on another issue as basic as taxes and who should pay what, the split right down the middle was very clear today. we want to begin our reporting tonight with nbc's kristen welker at the white house. kristen, good evening. >> reporter: good evening to you, brian. today the president unveiled his deficit reduction plan for the bipartisan super committee but the closer we get to 2012, the

more politics seems to overshadow just about everything. a combative president obama unveiled his $3 trillion plan to cut the deficit, sharply contrasting his vision for budget control with that of republicans. >> i will veto any bill that changes benefits for those who rely on medicare but does not raise serious revenues by asking the wealthiest americans or biggest corporations to pay their fair share. >> reporter: the president's proposal incorporates changes to such democratic party sacred cows as medicare and medicaid without reducing benefits. and he proposes $1.5 trillion in new tax revenues. political anathema for republicans. mr. obama said tax reform should be guided by what he called the buffett rule, higher tax rates for millionaires, named after the billionaire investor. >> middle class families shouldn't pay higher taxes than millionaires and billionaires. that's pretty straightforward. warren buffett's secretary

shouldn't pay a higher tax rate than warren buffett. >> reporter: in the latest nbc news wall street journal poll the majority of americans support increasing taxes on the wealthy, but republicans immediately declared tax hikes are dead on arrival, accusing the president of driving a political wedge in the electorate. >> i don't believe class warfare is leadership. you know, we can get into this tax the rich, tax the rich and it's not going to get our economy going again. it's not going to put people back to work. >> this is not class warfare. it's math. >> reporter: analysts say the president is making a populist pitch. >> i think the president is trying to have an ideological fight. i think he wants this to be about democrats defending and working for the little guy, the average american and republicans defending the super rich. >> reporter: and mr. obama is on familiar territory, switching from governing to campaigning.

>> this proposal, his whole style now is much more combative and confrontational. it reminds us that we are in a presidential campaign. >> reporter: now, the president is in new york right now for the u.n. general assembly, but his fight for re-election is not far behind. tonight he attends the dnc fund-raiser. brian? >> kristen welker starting us off at the white house tonight. kristen, thanks. with us for a reality check tonight, our friend sue herrerra from cnbc. so let's have it. a lot of people are asking, is this true what they are hearing? when you ask people in polls should the rich pay more, it proves quite popular over the years. do they pay at less of a rate, this warren buffett assertion that he pays less of a tax rate than his secretary? >> in many cases they do and there are reasons why that happens. the super wealthy are able to take some of the money and put it into separate pots, investments. so they are taxed at an investment rate which is lower than the tax rate you and i pay. we get a paycheck every two weeks. that's ordinary income. it is taxed at a higher rate.

>> for the people -- we'll let the politics of this play out, but you hear cynics say if that's the case will they ever get at it? will people just lawyer up, hire better lawyers and continue to -- to use the bad word for it -- hide the money from the government? >> i think that's open for debate. the way that the super rich move money into different investments is all legal. it's all above board, but it does indicate that the whole tax system probably needs to be revamped to make it more equitable all the way around. now there is a down side to higher taxes for the super rich. many people feel it could have a chilling effect on economic growth. that, in essence, those super rich people tend to invest more whether it's on wall street or whether it's in businesses. they take more risk. if they feel they have less money they may slow that down. >> that's the counter argument we get to watch play out now. thanks for coming by. >> thank you. >> now the big story over this past weekend.

the awful scene in reno, nevada. if you have been to an air show you can imagine the horror in the crowd when this modified world war ii era plane, a p-51, plunged to the ground near where people were sitting. we have exclusive new pictures that have emerged of this crash. fair warning they show the moment of impact, exactly what investigators are now zeroing in on. our report from nbc's george lewis. >> reporter: this video provides the closest view yet of the p-51 mustang, a world war ii fighter slamming into the ground. [ screaming ] >> reporter: ben cecil in the bleachers with his family shot the video. >> to be honest it's hard for me to talk about. there was about one to one and a half seconds he was pointed right at us. i started to flinch and then, miraculously for my family, he pulled up and misses the bleachers. >> reporter: the video and earlier released still photos show part of the tail section

called a trim tab missing. investigators from the ntsb found it over the weekend. the plane also carried a video camera and flight data recorder. the information stored on memory cards like this one. investigators think they have recovered some of the cards and they are hoping to find useful data. the plane had been heavily modified for racing -- the wings clipped and the engine souped up for speed. the pilot, 74-year-old jimmy leeward. >> i know the speed. i know it will do the speed. the systems aren't proven yet. we think they're going to be okay. >> reporter: were they okay? that's one question investigators will try to answer. in the chaos that followed the crash, volunteers rushed in to help. some fuelled up an old huey helicopter on display and flew victims to the hospital. >> it was an experience that i don't wish upon anybody. you know what i mean? i don't wish anybody to ever go through that.

>> reporter: the ntsb is expected to issue safety recommendations for preventing future tragedies like this one. george lewis, nbc news, reno. in news from overseas tonight, the crackdown in yemen is at a high pitch this evening. at least 56 people have been killed over just the past two days in what's described as the most violent pushback yet against pro democracy demonstrators there between soldiers loyal to president saleh and those who defected. and the stage is set for a showdown tonight at the u.n. palestinian president mahmoud abbas said he is not backing down from his plan to formally request u.n. membership later this week in new york when he addresses the security council, a move the u.s. is fiercely lobbying against. now we turn to a story from health news tonight and the investigation into this fascinating connection between diabetes and alzheimer's disease. the relationship between these two major health crises in this country, the new research

released today is just the latest batch to suggest there is a link between them. our report from our chief science correspondent robert bazell. >> reporter: the evidence linking type 2 diabetes and the risk for alzheimer's has been growing for years. and today's study makes the case even stronger. for 11 years japanese researchers followed more than a thousand people aged 60 and older. those with diabetes at the outset were 35% more likely to develop alzheimer's. those with the most severe diabetes had more than triple the risk. the alzheimer's association already estimates that by mid century, 16 million americans could have the disease that robs people of their memory. >> the fact that type 2 diabetes is increasing and it is a risk factor for alzheimer's disease would only make those numbers bigger. >> reporter: why the link between two of america's biggest health problems? >> this is the alzheimer's gene. >> reporter: scientists don't have all the answers but dr. sam gandy and his team at mount sinai school of medicine recently discovered one piece of the puzzle.

>> there are some proteins, some genes that are controlled by insulin that also control the build-up of the material in the brain that causes alzheimer's disease. >> here's the device. >> reporter: last week scientists found insulin delivered to the brain with a special inhalation device might be a treatment for alzheimer's. >> hold it up to your nostrils. >> reporter: it will take years for large studies to prove whether that or any other treatment is effective. meanwhile type 2 diabetes affects 25 million americans and the ways to reduce the risk are familiar -- diet and exercise. >> reporter: studies show alzheimer's is one of the most feared diseases. second only to cancer. many public health experts hope the evidence linking diabetes to alzheimer's will persuade many people considering lifestyle changes to actually make them. robert bazell, nbc news, new york. so many americans have reacted in sadness and sorrow to

the news this weekend that two daughters of american politics, both from famous families have died at the same age and just hours apart. both kara kennedy and eleanor mondale died following a brave fight with cancer. our report tonight from nbc's kelly o'donnell. >> reporter: senator edward kennedy had written his only daughter was given a name that meant little dear one, kara. what her father meant to her was easy to see when kara accepted the medal of freedom in his place in 2009. kara reached out to mourners and led a prayer at the senator's funeral. >> for he shall rescue the poor man when he cries out and the afflicted when he has no one to help him. >> reporter: kara had been a nearly ten-year lung cancer survivor. she died suddenly friday after a

workout. brother patrick said her heart gave out, weakened by the gruelling chemo. kara made films and tutored students but her drive centered around her children -- max, 14 and grace who turns 17 today. this weekend, former vice president walter mondale and his wife joan lost their only daughter eleanor. she talked about her long battle with brain cancer in 2009. >> you think, i'm not going to die. it's not going to get me. you know, i'm going to be all right. >> reporter: eleanor relished a public life of her own as a tv and radio host. unlike many candidates' families, eleanor embraced the campaign trail in 1984. >> i like campaigning for my dad. it gives me an opportunity to tell people about him. >> reporter: two daughters of american politics who showed a grit and grace against cancer. kara kennedy and eleanor mondale were both just 51 years old. kelly o'donnell, nbc news, washington. >> when our broadcast continues here on a monday night, an american businessman is taking

the jobs crisis into his own hands by bringing work back here from overseas. and later, a big heads-up for all of us here on earth. a huge piece of space junk is looking for a place to land, and pretty soon. #

we have a story for you tonight on the jobs front at a time when a lot of americans have wondered where they have all gone, and a lot of them have gone overseas. tonight's story is about a man

who had a change of heart about that. he's bringing jobs back home where they belong. nbc's ian williams reports tonight from the region of southern china some have called the workshop of the world. >> reporter: for years bill green has been chasing lower costs by shifting production of lamps and industrial cabinets to china. now he's looking to bring some of that work back to america. >> you reach a point where the risk is not worth the reward. >> reporter: chinese material and labor costs are soaring, shipments are being delayed and green suspects factories are cutting corners on quality. >> if they don't sand this stuff off, that will come back through the paint. see this around the edges where they painted? this is rust. >> reporter: we joined him on a visit to china to confront suppliers. >> this is unacceptable. we can't have that. you know, they know how to get it out. >> reporter: the factory boss

complains he can't get enough workers. >> i don't want to hear -- >> reporter: even with wages rising by 40% a year. the supply of young migrants, the backbone of the factories, is drying up because of more job opportunities at home. so green decides he'll ship the final assembly of cabinets back to his mobile alabama factory. then to another tense meeting. >> needs to go down. >> reporter: this time at a factory making lamps where the boss demands bigger orders and larger down payments. >> if i issue a purchase order with prices on it i don't expect them to change when it's time to pay for the order. >> reporter: green will divide the work now between india and the u.s. until three or four years ago it was hard to imagine american business people going anywhere else but china for choice and price. but the calculations are now fast-changing. >> it is more stable in the united states to manufacture. you know what the costs are going to be pretty much. used to be you came over here and everybody was willing to do anything. now it's harder to get them to cooperate with you. >> reporter: it's a growing trend across southern china's export belt with analysts

reaching a startling conclusion. >> china as the world factory, i think the best time is behind us. >> reporter: as green prepared to return home, he was planning for the first time in years to create new jobs back in america. ian williams, nbc news, china. >> when we come back here tonight, an american company in the news for all the wrong reasons. how netflix made so many enemies out of so many customers.

tony here is your quarterback. you protect his blind side. when you look at him, think of how you have my back. how you have his. okay? all right, tony. go back. >> just part of a great performance. sandra bullock on the big screen or better yet if you wish to stay home, right there on the tv. and for years, millions of

americans have chosen netflix as the way they see feature films. they have become a loyal customer base, a big one, until netflix decided to charge a lot more. and as one headline writer on the web put it recently, "netflix is getting slaughtered by its own price hike." they have lost an estimated 1 million customers and in light of the big hit the business is taking, today the ceo of netflix, reed hastings came out with a rare mea culpa in a long blog post accompanied by a youtube video. in the blog post, he said, i messed up, adding that the company rushed the process of splitting up the dvd rental and the movie streaming service which he said was partly due to arrogance. the cartoonist tom wilson has died. he's best known as being the father of ziggy. he drew over 1,200 cartoons, carried in 500 newspapers, seen

by 40 million americans. wilson made ziggy a modest and kind figure and he also gave dogs the loving voice we all knew they had. tom wilson was 80 years old. dolores hope has died. the wife of the late, great entertainer bob hope. she started out as a singer in her own right, then put her career on hold for his. but she has her own star on the hollywood walk of fame. her husband died in 2003 at the age of 100. dolores hope lived to the age of 102. he is known affectionately to yankee fans simply as mo. after today, we can officially say what we already knew. mariano rivera is the best relief pitcher of all time. today he threw save number 602. this is now uncharted territory. each new save will be the new all-time record. and all of us get to say we lived in the time of a baseball legend. when we come back here tonight, a few people in antarctica will be safe, but the rest of us had better keep an eye on the sky this week.

finally here tonight, back in 1979 when the early space

station skylab was dead as a doornail and falling to earth one of the local tv stations here in new york famously warned viewers, it's as big as a house and it's headed our way, at 11:00. we're kind of saying the same thing here tonight. the largest piece of space junk since then is, indeed, headed our way. our report tonight from nbc's tom costello. >> reporter: nasa's reputation is built on precision, but pinpointing when and where a six-ton satellite might crash to earth isn't a precise science. nasa is guessing friday -- or it could be thursday -- or saturday. >> it's difficult to be precise when the object is not behaving. it's tumbling in ways we can't control. >> reporter: climbing to space aboard the shuttle "discovery" in 1991, the ur satellite studied the atmosphere and climate change. engineers expect it will break into a hundred pieces on reentry. a quarter of those could make it

to earth. nasa is pretty sure any surviving pieces of the satellite will fall somewhere between 57 degrees north and 57 degrees south. that's essentially between newfoundland and argentina. that means that only the 1,000 or so people who live in antarctica are absolutely safe. the odds of getting hit by space degree? since 75% of the earth is covered by water, nasa says the chances are 1 in 3,200 that some human will be hit. with 7 billion humans on the planet, the chance you will be hit is 1 in 21 trillion. by comparison, the chance you will be hit by lightning, 1 in 1 million. the biggest piece of space junk to fall to earth was skylab in 1979. >> skylab fell to earth today and as far as we know, no one was hit by any of the pieces. >> reporter: today nasa estimates there are at least 22,000 pieces of orbiting space junk. >> what causes the problem is that one piece of junk will smash into another piece of junk and that makes a lot more pieces of junk. >> reporter: so far no one has

been injured by falling space junk. nasa hopes to keep it that way come friday -- or saturday. tom costello, nbc news, washington. >> we hope you are all in for the night. that's our broadcast for this monday evening. thank you for being here with us as we begin a new week. i'm brian williams. we hope to see you right back here tomorrow evening. we hope to see you right back here tomorrow evening. good night. -- captions by vitac -- www.vitac.com good evening. thanks for joining us on this monday. i'm raj mathai. >> and i'm jessica aguirre. we want to take you here live to the east bay. fire fighters are working to control flames burning at the edge of lake shaboe. al meeta county fire still trying to figure out exactly how to get the ground crews through what is very rugged terrain there. u