this is "nightly business with tyler mathisen and sue herera. auto sales remain on track for the best year in almost a decade making this one part of the economy that seems toe firing on all cylinders. security failures. despite bill yoz being spent on our nation's airports a new report shows it is way too easy to get past security. >> raise the retirement age, that the best way to save social security. all of that tonight on "nightly busine for tuesday, june 2nd. good evening, everyone and welcome. auto sales are hot and that says a lot about a luke warm economy. the industry is on track now for the second best year ever for car and light truck sales as

attractive financing and promotions draw consumers into showrooms. seve top automakers including fiat gm and ford report bette expected results. shares of the big three were mixed. gm rose a fraction and fiat and ford down just a bit. phil le bea takes us for a ride. the american car buyer was out in force with the month of may coming in at the strongest pace since late 2005, early 2006. almost every automaker reports better than expected sales with the big four reporting sales 2% to 4% better than wall street estimates and in particular the big three had a big may. bicup truck and suv sales very strong. pickupside of the business there was higher transactions and modestin sent tifts meaning dealers didn't have to spend as much to close a deal.

what we'll see for the rest of the year. inventory is lean because there is so much demand in the market. will it continue? in the words of one person in the auto business. we're not seeing any slow down any time soon. phil le bea, "nightly business nichg. in contract to auto sales. new orders fell in april. the eighth decline in nine months. the congress reports that the sign the stronger dollar is still hurting manufacturing. and cheaper oil has cut demand for pipelines and equipment. federal reserve officials today said weak reserve economic reports raise doubts about the economy and whether it will snap back fast after the weak first quarter. in hail brainerd said the reports do not suggest a significant rebound. >> there may be reasons not to dismiss the soft readings entirely. first the limited data in the

second quarter do not suggest a significant bounceback yet. and second it wouldn't be the first time. the underlying momentum of our recovery has proven susceptible to head wind which has kept growth below the average of previous up turns. >> the headwinds she lifts were a strong dollar and cheaper oil despite the down beat view of the economy she did say a rate hike this year is still possible. on wall street the strong auto sales were not enough to send the major indices to the plus side. by the close the dow jones lost 20 pounds to 18,011 and the nasdaq drops six and the s&p 500 declinedy two points. throughout the day many investors had been paying close attention to the situation in greece. and signs that the standoff between that country and the creditors may been easing. mish el caruso-cabrera has more. >> in the last 24 hours in the

greek debt negotiation, a attitude shift when it comes t european creditors. there was a late night meeting hosted by angela merkel and the head of the ifm and the european union and they came together because they are so dissatisfied that greece has not brought forth something they are not satisfied with. and they didn't want to look like they were imposing a program on the greek people and the greek people to own their own reform and thus they have decided the creditors they will put together a suggested reform program. f goal of the meeting. the second goal of the meeting was into resolve the differences among the creditors themself. the imf wanted to be tougher on the greeks an the european commission wanted to be easier on the greeks. for them to craft a suggested program they have to reconcile those differences and that was part of last night's meeting as

well. the next step is to present the suggested program to the greek prime minister. they are trying hard not to make this look like an ultimatum, a take it or leave it but ultimately it may look like just that. the next step is the formal presentation of the program and then after that we wait to see the greek's response. what is the primaries going to do. hold a vote within his own party or within the parliament will he call for an entire referendum and we don't know what happens from here but certainly we are getting down to crunch time. the key issues are the fact that the g owe the european central bank a lot of money in july and august. $3.5 billion and $3 billion respectively each month and as a result these big payments and if they don't get a disbursement before that, it going to be real trouble, possibly a real default. right now we wait to hear from

the greeks. mish el. the retirement age was thrust to the front age when jeb bush said on face the nation this weekend that the threshold should be pushed back. >> we need to look over the horizon and begin to phase in over an extended period of time going from 65 to 68 or 70 and that by itself will help sustain the retirement system for anybody under the age of 40. plus izen berry joins us now for more on this. thank you for being with us. what do you think, is raising the retirement age is what we need to do to help the system stay solvent longer? >> raising the retirement age will make the system solvent a little longer but it is not the biggest problem. the fact that people are living longer accounts for about 20% of the long-term shortfall in

social security. the much bigger problems are that we have uneven wage growth. most of it going to the very top of the income scale. and the fact that hitch people don't pay the same tax rate that everyone else pays so if you earn up to $118,500 you pay social securit tax on every penny that you earn but everything one earns over that is not taxed so a millionaire or someone let's say making $10 million a year is only taxed on 118,500 and isn't taxes on the rest of the earning. >> and you say that is the solution, to tax w make more money. >> that would be a much bigger solution. if you scrap that cap, that giant loophole that lets the rich pay a lower tax rate. that would be three -- that would cure 75% of the long-term shortfall in social security. whereas it is only about 20% to

25% by raising the retirement age to 70. >> so $118,000 a year is the current cap. would you argue that you need to tax all earnings no matter how high they go or only earnings up to an elevated level above $118,000 in. >> i'm in favor of scrapping the cap. we tax for medicare purposes the fica taxes on all income there is no limit on how much and i think the same should be the rule for social security. >> what is the political appetite though in washington for that type of a solution especially given the fact that we're in a campaign season it doesn't seem like there is that kind of appetite to discuss tax increases like that? >> well you know if you ask the americ you rather have your benefits cut by 20%, which is what raising the retirement age to 70 would do or have rich people pay the same

tax rate that you pay, not surprisingly they are overwhelmingly in fav of that. and i think that there is a growing appetite among politicians in washington to actually not cut social security benefits but raise them since the average benefit it only $16,000 a year right now. it is not really very much it is not enough to live on and half of americans depend on social security for most of their retirement. >> and one fact that i'm always reminded of when social security began, full retirement benefits kicked in at age 65 when the average american male's life expectancy was something like 64. ross izen berry, thank you very much. with the economic policy institute. thank you for having me. still ahead. corporate perks, the life changing benefit one ceo is offering his employees.

a surprise resignation today from fifa president sepp blatter followed by a report from new york times that he is the focus now of a federal investigation. his resignation came days after he was re-elected to a fifth term as the head of soccer's governing body and amid allegations of corruption and the arrest of senior members of his circle but blatter has not been charged with any crimes so far. in washington the senate passed a bill that reforms the government's domestic spy program. the bill would end the agency's bulk collection of american telephone data exposed by edward snowden. the legis goes to the president to be signed into law. and on twitter he said that he plans to sign it as soon as he gets it.

also in the nation's capitol, lawmakers press regulators and takada executives about the firm's massive recall and the comments show the problem keeps getting worse. many cars that were already repaired may have to have a second airbag replacement, more than 30 million cars are ed in this massive recall. the acting director of the transportation security administra has been reassigned. the decision comes after an internal investigati revealed major security failures at some of the nation's biggiest airports. fact bombs and other things went through check points despite billions being spent on airport securi javers has more. >> this is nothing short alarming. >> lawmakers were stunned on a series of failure by airport security to detective fake weapons and explosives. it sparked a shake-up at the top

of the tsa on tuesday, as homeland secur the reassignment of melvin karaaway in the fallout from the failed test. red teams operated by the inspector general were able to get potentially dangerous items in 67 of the 70 tests they conducted across the country. a 95% failure rate. now experts are saying the revelations call into question the massive post 9/11 airport security spending boom. >> americans should question whether their money is being spent. it is $8 billion a year and in 95% failure rate why are we doing this? it seems like the most expensive theater operation ever put on by anybody. >> to some on capitol hill the answer is to partially privatize the tsa. >> government has an important security role and it is an important role in connecting the

dots. what it doesn't do well is manage 46,000 screeners and equipment which they have lost track of even the count of it and then can't even monitor its effectiveness and use it properly. the department of homeland securi has said it has instructed the tsa to revise its procedures to conduct training for the officers and to test and retest the screening equipment. meanwhile president obama has nominated a permanent administrator for the tsa but that is still pending up on capitol hill. for "nightly business rep i'm eamon javers in washington. e irs pledging to make the tax filing system more secure. before the senate finance committee, the commission said they will team up with tax software company to block identity thieves following the breach of income tax data. >> the ball -- the battle is becoming increasingly difficult for not just us but for those in

the private sector and this is a shot across the bow for remind people the nature of the battle we're fighting and the sophistication of th enemy. >> more details on the agreement between the irs and tax prep software companies are expected soon. meantime h&r block is trying a new high-tech way to help you prepare your taxes. jane wells has more from los angeles. >> i like the 55% complete. >> i'm having my taxes done by john. >> thank you so much for coming in today. >> thanks john. h&r block wants to revamp the customer experience and rather than spending money doing it in reality. she mad a joke. >> it is testing it in virtual reality. what did you think of it? >> cool. >> block is the latest company trying to figure out if virtual reality or v.r. can be used as a business tool. fidelity has a tool that lets

you turn your stock news a city. it is easier to experiment with v.r. as the cost came down. leiberman worldwide is running the r and r block. it used to spend $40,000 per headset and now it buys them from oculus for $100. >> and you'll see headsets already there is probably six to ten different headset manufacturers announcing projects. block is exploring a office layout with privacy and a screen so customers can follow the tax process. >> it lets you bring together the piece and the parts and does it in a way it does feel realistic. it feels so real they will talk about the avatars. >> it was just really comfortable. and even if the graphics like kind of hokie, this customer bought into it. >> i felt it was interactive even though i didn't talk back. it felt kind of real.

>> to be clear, the v.a. was only used for research and an avatar will not do your taxes, but it is a new way for companies like block to test concepts in virtual reality to move them to reality. >> it was great to meet you and please don't hesitate to call me. >> john looks weird. >> for "nightly business jane wells, los angeles. >> john looks weird? tonight we begin tonight's market boke us. sales of tobacco and candy and health products help expertations. same-store sales were strong but revenue slightly below expectations and sairs were up 3% to $74.98. medtronics results beat on the top and bottom line. first quarter to include revenue from the quick of the makerco indivi. full year profit outlook was below estimates citing the strong dollar and shares were

higher to $76.88. new guidance from delta weighed on its shares today. lowering forecast for new revenue which is a key measure on a decrease in business travel. shares fell 2.5% to $43.21. several hedge funds have asked macy to consider selling or leasing out major real estate. the push is in line with real estate decisions by other major retailers. the shares popped when the news came out and finished the day up 2.5% to $68.49. >> billionaires are taking part more and more in warren buffett's giving pledge to give away half of their fortunes to philanthropic causes. ten people joined the effort jump started by bill and mill inda gates. among them chobani. there are 137 pleathers on the list. and giving back isn't only for the super rich. one ceo of a smaller firm is

giving back in his own way. fay wong is from boxed. a mix of costco meeting amazon allowing users to buy in bulk online and although right now he only has 100 employe he he recently announced planned to pay for workers' children's college education because he believes education is the key to closing the wage gap. we're pleased to have him in studio with us. >> thank you for having me. and i'm glad that we clarified i'm not a billionaire. the program would have been easier to allow. >> you're a budding billionaire. so you've decided that workers that have children that are eligible for this program, you will pay for their tuition to college. that is right. >> how did you come to that decision? >> it was a combination of two factors. one, me being kind of growing up in very humble beginnings and a humble back ground knowing the reason i'm here today is because

of education. and education is the real kind of trajectory changer for most families in this country and so me thinking that okay we have that. and two, with the scale i can't do myself and for me to get the most of mysf i need a great group of folks around me. >> and so three related but unrelated questions. one, how are you going to pay for it and two what are the strings, how long do i have to work for and stay with the company and three are there any caps on the amount you will pay? >> sure. so no caps at all. so whether you want to go to community college or i guess what is the most expensive one now, george washington or i don't know where it is. but it is up to you. i don't want to hinder your education, that is opposite of what i want to do. >> so no cap. >> no cap. and actually it is my personal money so it is not affiliated with the company right now. so i set aside a large portion of my personal shares in the

company ana portion of my personal cash. >> into a foundation or a trust exactly. and the cash is for the short-term obligations. one of the persons in the warehouse has a person going to college and they won't take box shares as payment. >> boxed shares. >> i asked them and they wouldn't. well maybe she will. >> and how long do you have to work for the company? >> the trigger will really be when there is a great outcome for the company. whether at the new york stock ex or the nasdaq ringing the ball or if we were acquired as a company and the shares would become liquid and that would be the pool distributed. >> and you say that basically the shares are in play however this is not your first entrepreneuria adventure. one of the ways you helped found box is you had another company that you sold and that was your seed money correct. >> absolutely. and so that is helping in this effort. >> 100%.

and i haven't taken salary in my current role for the past two years and the cash that i put toward the foundation was the cash that i got from the last company that w started. >> very noble effort. thank you for spending time. chai hong of boxed. >> coming up will the bet disney is making on a whole new type of toy pay off? we'll see. finally tonight disney making a big bet on a new toy designed to get kids off the couch. the company has invested millions of bucks in developing the game and it is hoping for a even bigger payoff.

julia boorstin h disney unveiling a new toy called play matino to inspire kids to unplug from screens and run around as they imagine their avengers characters. >> it will bring kids favorite stories to life in the real roirld. >> it is a five piece package of kids toys build on marvels avinkers and made by hasbro. it works with two action figurers and two plastic disks that light up and talk to kids in the voice of iesh man's assist and jarvis delivering instructions for a mission. kids can be hit by the action figures which makes the glove vibrate. while the toys can sync with an app. for more information on the mission and to get updates on progress it works without any screens or seechb wi-fi. >> play maigs and wearable devices bring together infrared and motion sensor and bluetooth

technology. the package will retail for $120 in october with preorders starting in july. ? nove package built around interactive hulk hands will hit stores with nor avengers toys in the works. disney has been working on this for three years investing millions of dollars but will it off? the franchise could generate half a billion dollars in sales annually ceo of ccpm who was prebriefed by disney and he said it cou hit a billion dollars annually as they franchise to other expansions. >> we'll create play experiences that expand some of the most popular stories. next up is star wars in 2016 and then frozen coming in 2017. >> this holiday season disney is hoping to tap into kid's natural love of play and parents he to

unglue kids from screens and get them up and running. i'm julia boorstin in los angeles. that is in our future you know that right. >> both of us. >> absolutely. that does it for "nightly business for tonight. i'm sue herera. and we want to remind you that this is the time of year your public television station seeks your support. >> i'm tyler mathisen thanks for your support and have a great night, everybody. we'll see you back here tomorr

[reflective music] ♪ ♪ [female vocalizing] ♪ ♪ (female narrator) walking in the light in deep, endless beauty. a memory filters through. carved against the canopy of sky are faces of ancient beings, smiling and familiar.