. >> reporter: pediatrician aanal desai worries about her patients. >> we're talking about cutting costse. e.r. visit, hospitalizations are going to increase the cost. >> reporter: california already is struggling with a budget crisis of its own and doesn't have the funds to make up for the federal cuts to medicaid. with unemployment here near 12%- - among the highest in the country-- the arroyo vista clinic and others like it don't expect to see any reduction in need. bill whitaker, cbs news, los angeles. >> pelley: another pro sport is having labor trouble. n.b.a. contract talks broke down today, and the owners are expected to lock out the players at midnight. that would put them on the sidelines along with n.f.l. players who were locked out in march. former mob boss whitey bulger was back in court today, crying poverty and asking taxpayers to pay for his lawyer. will they? that story is next. [ waves crashing ] ♪ ♪ [ male announcer ] and just like that, it's here. a new chance for all of us: people, companies, communities to face the challenges yesterday left behind and the ones tomor

professor desai, he said the current corporate tax system has the worst of all worlds. to please explain that a little more? say the average rate is 17.5% and say the statutory rate is 30%, the average would be 1-2. is there some ideal ratio, 1-1 maybe? or would be ideal to have a statutory rate lower than the average rate of that could be accomplished? >> i guess was trying to get two or two things. the statutory rate is high by global standards. when a said the worst of all worlds, there would be some benefit that would come from that and we're living in a world where we're not getting that. we have highly responsible taxpayers and high statutory rates which distort the margins, and we're not collecting very much. the problem with tax reform that other countries have embarked on and i hope that you embark on is that the war rates, broader base, and bring them together -- is at the lower rates, broader base, and bring them together. it is also more consistent with political viability. corporate tax is now viewed, widely by the american people, as something that is not

desai's comments. it would be better if we had a lower statutory rate and if we did some things to broaden the base would have the effect of increasing the effective tax rate closer to the statutory rate. the differences now are illustrative of some of the ways in which the tax code directs resources. that will maximize national and come and economic growth if we remove some of those distortions. >> senator hatch, i will probably reemphasize the points. when you're looking at the statutory rate, you look at the marginal tax rate that applies. economists emphasize the importance of the marginal tax rate because it is the margent that influences the next investment that may be made or the next financial choice that might be made. high marginal tax rates tend to distort choice. they can promote more debt and equity. they can promote tax shelter behavior. they can reduce incentives to invest, which reduces incentives is -- which reduces incentives for future growth. economists are generally in favor of low

the republican leadership desai-- denies it exists but it apparent that cantor has been the spokesman and the leader of that group and the republican caucus that is most anti-tax. >> woodruff: and the president, david s still saying, he said i put on the table, and he still s entitlements, social security, medicare, medicaid. and he's saying this is something that republicans, an opportunity they passed up on. >> yeah, i'm not sure it is a little exaggerated to say he put it on the table. they may have been putting it on the table and smelled at roama from the kitchen. so it wasn't really on the table. so the aroma was-- . >> woodruff: it's not really an offer. >> it was never really materialized but it was a possibility worth exploring and the possibility worth exploring was raise the medicare eligibility, tying social security to a different inflation measure which would reduce the benefits and about $1.4 trillion in discretionary spending cuts so these were serious offers that were extremely unlikely coming from a democrat. i don't think they will be on the table any time soon agai

e desaied after debate that the model of the control of the currency a single individual, appointed by the president, was a better model for the consumer agcy, to so does everyone else who supported it. the gentleman from alabama said, that was a good idea and you runed it. the gentleman from alabama was opposed to it when it was a good idea. he was opposed to the notion of an independence consumer agency. he makes a point of stressing that, yes, after hearing, a single individual would be bett than a consumer hearing. he made a change that dwarred the tra yectry of ours. he is now telling us retroactively that it was a good idea. even then, today on television, he said, we have concerns about an agency whose sole concern is to protect the consumer unless they wry -- worry about the banks as well. there are three parts of the bill and he took the only part he thought he could defend. it would say that the part of the bill that would give us powers over the payday lenders and mortgage lenders, he didn't talk about that. i will admire his discrergs of -- discretion. of the three parts of

desai's been a secret war as you like conducted by the cia in pakistan using these unmanned aircraft.if one looks at the history of it, one can see how it is ramped up but now there are questions in the wake -- of course the vast majority of these raids have been carried out in so-called tribal areas on the border with afghanistan, and over the years the number has gone up steadily. in the first few years in the strikes of 2,042,007 they're just a handful and then we see it going up in 2010. the obama administration rising at a policy never fully publicly articulated. 118 strikes last year and 45 so far this year. the pakistanis said a couple of months ago that they wanted him stopped them stopped and they ordered the cia out in their base in pakistan were some of the strikes are being launched. by my reckoning there is than a dozen since then. so has this been done like the enlightened raid against the will of the pakistan government? put the whole thing in a different legal contextualization. we don't know that for sure but we know the americans are defensive about in last month for

we desaied after debate that the model of the control of the currency a single individual, appointed by the president, was a better model for the consumer agency, to so does everyone else who supported it. the gentleman from alabama said, that was a good idea and you runed it. the gentleman from alabama was opposed to it when it was a good idea. he was opposed to the notion of an independence consumer agency. he makes a point of stressing that, yes, after hearing, a single individual would be better than a consumer hearing. he made a change that dwarred the tra yectry of ours. he is now telling us retroactively that it was a good idea. even then, today on television, he said, we have concerns about an agency whose sole concern is to protect the consumer unless they worry -- worry about the banks as well. there are three parts of the bill and he took the only part he thought he could defend. it would say that the part of the bill that would give us powers over the payday lenders and mortgage lenders, he didn't talk about that. i will admire his discrergs of -- discretion. of the three

we desaied after debate that the model of the control of the currency a single individual, appointed by the president, was a better model for the consumer agency, to so does everyone else who supported it. the gentleman from alabama said, that was a good idea and you runed it. the gentleman from alabama was opposed to it when it was a good idea. he was opposed to the notion of an independence consumer agency. he makes a point of stressing that, yes, after hearing, a single individual would be better than a consumer hearing. he made a change that dwarred the tra yectry of ours. he is now telling us retroactively that it was a good idea. even then, today on television, he said, we have concerns about an agency whose sole concern is to protect the consumer unless they worry -- worry about the banks as well. there are three parts of the bill and he took the only part he thought he could defend. it would say that the part of the bill that would give us powers over the payday lenders and mortgage lenders, he didn't talk about that. i will admire his discrergs of -- discretion. of the three