with respect to capitol gains where a corporation can choose to retain the capitol gain, or if they choose to pay out those corporate earnings, it is taxed a second time. the tax rates are probably in the mid 40s and are around 50% in 2013, the integrated tax rates on capitol gains will rise to 50% if not higher because the capitol gains right is scheduled to rise to 20% and then another 3.8% under the medicare tax legislation the capitol gains the medicare tax will apply to uneasterned income in the u.s. the dividends tax will rise as well. lower than that 50% on an integrated basis. again, i think of investment, you need to think about the double tax and think about the income tax and so that i can a very important issue. as len indicated looking at a capitol gains income tax, both joint committee would tend to view the rate on capital gains in the neighborhood of 28% that is what they would still assume. and then the other point i would make is, i think when you look at the income tax system, or the tax system generally, i think you need to be careful i think to not fall into the trap t

the problem with a lower tax rate on capital gains, the top capital gains rate is 15%. if you can figure out a way to turn your ordinary income into capital gains use save 20 cents on the dollar. this has produced a industry whose job it is to come up with ways to generate deductions to shelter your income from tax and pay you back for capital gains. this is a huge waste. a lot of investments that produce deductions, they do not make sense from an economic perspective. there are a lot of smart people working on these tax shelters who could be doing socially useful work. you probably cannot tax capital gains at the full rate. raising less money than capital gains that a 28% rate. if you can lower tax rates and tax capital gains at the same rate, that is a reasonable trade-off. ronald reagan agreed to it. it produced a tax system with radically lower rates. with tax reform in 1986 was when bobbitt packwood came up with the idea that he called the 27% solution that ended up at 28%. it eliminated a lot of opportunities for tax shelter. >> there is one thing we will agree on

the nasdaq is also higher today with a gain of 26 points. up almost 1% at 2862, and the s&p is up 9 points, a 10 point gain there. >> give therein is a rebalance and expiration, can that will add to the volatility. we have an 85 point rally so far. do you want to be bracing for a round of panic selling on monday if the outcome of the greek elections have the austerity. >> let's hear from market watchers in today's closing bell ex-change. we have morgan stanley representative here, we also have rick santelli. why are the markets rallying going into a scary election for the world economy? >> you have the manufacturing in expansion territory. they're above 53. you had weakness in the fed and empire state manufacturing. that's basically been holding things down. i think maybe saying you see these election holes, saying that maybe the centralist parties might be able to put together a coalition and keep grease in the euro. if they leave the euro, you will have great hardship for grease. germany's choice is a pugnant outcome and a ruinous outcome.

for the week, the dow is up the nasdaq gained 4% the s&p 500 up 3.7%. while stocks shook off the european worries this week, one place we can see the impact of europe is in u.s. trade numbers. the trade deficit narrowed in april, thanks to less trading with europe. u.s. sales to euro-zone countries fell almost 10%. european imports to the u.s. dropped by more than 11%. >> tom: the drop in business with europe comes as u.s. goods and services have gotten more expensive thanks to a drop in the euro against the dollar. last year, one euro cost $1.45. today it's $1.26. suzanne pratt reports the dollar's gain could spell trouble for corporate america. >> reporter: unless you've traveled overseas, you might not have noticed what's happened to the dollar. it turns out it's getting mightier. in the last year, the u.s. dollar has gained about 15% against europe's common currency: the euro. in general, a country's currency strengthens as a result of an improving economy. currency experts say what's happening today, however, is more about the weakness of other cou

the homebuilders exchange traded fund gained 2%. it is in the middle of the trading range it's been in between $19 and $22 per share since the end of january. corn prices have rallied almost 10% over the past two sessions as hot dry weather continues across parts of the corn belt. that has helped fertilizer stocks. mosaic jumped more than 4%, potash gained 3.6%, and c.f. industries rallied almost 3%. all three saw heavier than usual trading volumes on today's buying. all of the five most actively traded exchange traded funds were higher, led by a nine- tenths of a percent increase in the emerging markets fund. and that's tonight's "market focus." >> susie: from restaurants to buying groceries and making lunches, americans spend over $1 trillion a year on food. before the great recession hit, a lot of that money went to eating out, but that's changed. celebrity chefs like emeril lagasse and paula dean are helping make chefs out of lawyers, teachers, and everyday americans. as we continue our look at the foodie craze, diane eastabrook

we need to gain these public spaces. this is the only way we can get the recognition we need to get to the change we all need. [ speaking spanish ] >> translator: but doing so constitutes being on the other side of the red line not allowed by the government. >> before i turn to our witnesses from havana, i want to ask them one, we have seen a tremendous increase in arrests and detentions in cuba over the last few months. what do you believe is the cause for that crackdown? and secondly, how can we help you to communicate and spread your message for human rights and freedom inside of cuba? [ speaking spanish ] >> translator: there's been an increase on crackdown in repression over the past six months. [ speaking spanish ] >> translator: this violent -- this increase in repression has become harsher and more violent. [ speaking spanish ] >> translator: but even more so important in addition to this increase in repression, there's an increase in activism that took place in parallel to this increase in repression. we see tha

theory of security experts are sounding the alarm claiming domestic terrorism has gained considerable foothold in the continent they say web savvy users are increasingly being seduced by radical ideologists all these lamas but also right wing as artists are for us now explains. in the war on terror me fight is raging in europe at the moment we're seeing an ongoing battle of ideologies people pushing the boundaries of freedom of speech with anti islamic rhetoric but at the same time extremist views are being expressed under the banner of freedom of religion this ongoing struggle is overshadowing a much more serious problem itself radicalization the growing number of young europeans these were not terrorists that immigrated smuggled themselves secretly into europe they were in europe already why i'm going to paris to me mary actually a small part of the global threat they have a disproportionate impact is that possible carrying citizens who understand the countries they live in and have good connections they're easy access to information about how they're going to be radicalized. that's

from now or at least from up with seen until now has gained the reputation of giving in and not being very strong when it comes to confronting confronting these really pressures so now in election year and especially when obama is trying to get the support of the conservative jewish votes we know obama met with all top of the jewish representatives in washington for example and said that washington has him but has been more attentive to israelis that it has been to palestinians so if you take all of this into one package and i don't expect anything significant will happen from now at least until the elections take place early there's an opinion that you just talked about israel their length is an opinion of these ongoing talks and the only thing is keeping israel from attacking iran's nuclear facilities do you buy that you think it's going to hold out there for. well i think that the sanctions yes i think that the sanctions which the american administration has imposed to some extent that has been a factor in preventing the israelis from actually going ahead and launching a strike it

a group gaining a greater foothold in syria as. operation thanks i think you know again the contradiction is. you know why is the us pursuing in collaborating in policies that seem to be increasing the likely of this were soft the it seems like if you're really concerned about this. rather than undermining. terms of a diplomatic solution rather than escalating war terry force they would be more serious sport to clinton for example the un and said let's have a contact group let's include everyone let's include iraq u.s. britain and france and shot down this proposal which is you know exactly the opposite of what you would do if you were looking for a diplomatic solution a liver if america two should you want everybody at the table has influence with all the parties and that means trying to have iran of the table because they have some significant influence with the syrian government robert tulloch really taught me a lot of gas lined up this out i got one last thought on the the u.s. and the e.u. and the matter of powers are pushing

and the problem right now the capital gains tax rate, the top capital gains tax rate is 15%, top ordinary income tax rate is 35%. if you can figure out way to turn your ordinary income into capital gains, you save 20 cents on the dollar. and this has produced this whole industry of advisers and consultants whose job it is to come up with ways to make, you know, generate deductions that shelter your ordinary income from tax and be, ultimately, pay you back in the form of capital gains. this is a huge waste. first of all, a lot of the investments that produce these deductions are not, they don't make any sense from an economic perspective. they only make sense when you consider the tax consequences. second, there are a lot of really smart people working on these tax shelters who actually could be doing socially useful work -- [laughter] under other circumstances. remember, write bob.carroll -- [laughter] now, we can't, you probably can't tax rates at a 35% rate. that would be scored as raising less revenue than, say, taxing at a 20% rate. but if we can tax capital gains at the same rate, th

and this is the path that i took when i went to meet shawn gaines. >> 29-year-old shawn gaines had spent most of the last six years in the special management unit, awaiting trial on a first-degree murder charge that could land him on death row. >> i've lived here longer than i ever lived in one spot in my entire life even growing up as a kid so it's just, you know -- i have yet to call it home, but it is what it is. >> gaines may not have wanted to call it home, but his security threat ranking dictated it. he was segregated because he was once a major player in a violent arizona skinhead movement. >> i was the notorious leader of that skinhead group. my lifestyle was full of hate and violence. >> so with all of that hype, i was expecting shawn gaines to be a very intimidating character, but when i first met him, he wasn't. he looked a little bit more like a benign, pudgy teddy bear, and he was nice. >> i've taken up drawing. i can't quite say i'm an artist but i like to draw a lot and three times a year i draw a large stack of cards, and i donate them to the children's hospital. >> but g

the s&p 500 gained almost 14. for the week, the dow gained 1.7%. the nasdaq was up half a percent. and the s&p 500 rallied 1.3%. the rally came despite more evidence of a slowing economy today. consumer sentiment, industrial production and new york-area factory output all were down in the past month. >> susie: as we reported, greek voters head to the polls on sunday and all indications show this will be a close election. so close, the results may not be known until late sunday evening. as darren gersh reports, greeks know the stakes are high. >> reporter: unlike last month's loud, angry election, political analyst nick carahalios says the mood in greece now is thoughtful. >> people are very afraid of what the outcome of the election might be and some people are hopeful that this will be a chance for big change in the greek political system and the greek economy. >> reporter: on the right, the conservative new democracy party promises to stick with the tough terms of the bailout agreement negotiated with european lenders. the coalition of the radical left known as syriza wants to te

and russian markets swing between the gains and losses waiting for europe to kick off its trading session all the details in business. it is like many am and the russian capital you are watching r t with me marina joshie a new massacre has apparently taken place in syria with up to one hundred dead in a small village near the city of hama but find some of the images disturbing well the circumstances appear to be eerily similar to those surrounding the bloody slaughter in the town of houla last month again hours all bring you would by a government bombardment against a rebel stronghold in the village after having a fighting troops say they found dozens of civilians have been tied up and shot or stabbed to death well this video apparently from the scene shows some of the victims who appear to have been dead for days well before government forces took the village. international affairs and fans analysts believes the timing is highly suspicious. and. were. so. called. with the support of the government they certainly receive lads they were even water beans to cultivate the they were protected

the huge 4% gain that we saw on friday. another gain of $4 and change.ugh it's well off the highs. look at that. it was up in the $1640 range, around midday, but now it's come off of that at 1621. the usual suspects this year leading the way, energy sectors and technology have been the leaders so far this year. no surprise on that. arthur cashin, are we getting the type of rally that suggests that we hit a short-term bottom here today? >> a very short-term. since 1928 we've seen times when we've breaked down below and then quickly shoot back above and then 15 out of those 19 times we've been back on the downside within one week to one month. >> he knows this stuff. but he reads a lot. not that he was there in 1928. the financials, we've already established that there's a portion of that that you like. don't go anywhere. what about energy? what about some of the other sectors, technology that have been leaders for this market? >> they don't always seem to lead at the same time. if you want a market that goes higher, you need financials that come back. fng

. >> bob, did you gain any insight from his comments about where the two parties might find areas of consensus or was there just not enough there? i'm sorry. mr. greenstein. >> more than one bob. >> that's true. there really is. >> i was deferring. there were several questions asked by journalists to try to hone in on specifics, and i thought chairman baucus' answers were i want to avoid laying out any specifics around which there would be partisan division before the election. i thought there was a consistent theme there that there need to be behind the scenes discussions now to lay a framework for more intensive discussions when the election was behind us. so while on the one hand, i don't think there were necessarily specifics that suggested further bipartisan progress as a result of the speech, i actually thought the more significant development was that there was nothing in what he said that impedes bipartisan cooperation and frankly, lots of statements that get made these days do have things in them that impede bipartisan cooperation, so i would rate it as a plus on that front.

in france and greece showed a big gains for the far right and immigrants say they've increasingly been on the receiving end of prejudice in many forms. in all of europe a woman with a veil can go into any shop and buy anything she wants but it build women cannot work in this shop but what is in the report is the discrimination and racism in the everyday life that people are facing because they don't trip or because they don't trust the police so every time you're on the street or issuing the stern warning that you have to cough and stick you have all whatever reports and click a two thousand and ten report by the european network against racism on discrimination found that racially discriminatory practices are widespread institutional in nature and practiced at all levels of society across europe in two thousand and eight the european commission proposed a directive that would ban discrimination on the ground. age disability religion or belief and sexual orientation in all areas including social protection and advantages as well us access to goods and services now the current law only

tonight, crude's pain, walmart's gain? carter and khouw are teaming up on the world's biggest retailer that could mean cash in your wallet. they'll explain. plus, talk about imagination at work. enis tanner has a trade on ge that can make five times your monday in just two months. we'll tell you how you can make money, too. why were all the options traders trading buying arena pharmaceutical calls? it's a tale of drugs and money that only scott nations can explain. the action begins right now. >> live from the nasdaq market site, the world's largest equity options exchange, these are the traders here in times square. financials stabilizing the market today. and volatile selloff yesterday. closing near the highs of the day with crude nearing one-year lows. stocks are finding a base right here. let's get in the money and find out what stood out to you today? financials had a nice snap back after yesterday's tarnish. >> i think that morgan stanley didn't get the -- got the two. that caused a little bit of a bounce. it was up

despite today's gain, the s&p 500 is down 3%. that's unusual considering the strong rally we had in the first quarter, isn't it? >> it's a bit unusual. when you go back to world war ii, typically the second quarter is pretty good. but i decided to go back to 1900 because a lot of the most recent years have reminded investors of the 1930s. and going back more than a hundred years, the second quarter is usually down. so in a sense, what we saw was typically what we normally see. >> tom: using history, what are the odds that the s&p 500 could see new highs before the end of the year? >> history says, but does not guarantee that about 80 plus percent of the time, the market posts its high of the career in the second half, and cent% of thseventy percent of t that's in the fourth quarter. and once the presidential election is over, so is the uncertainty, and investors pile back into stocks. >> tom: there's going to be a lot of politicking in the third quarter. how could that impact the election? >> sometimes the stock market can be its

energy was up 4.5%, and southwestern energy gained 4.3%. independent explorer apache also helped the energy stock rally. in a meeting with analysts the company talked up its portfolio of energy fields it has purchased over the past two and a half years. it now says it will shift its focus from acquisitions to developing these areas, expecting oil to lead the company's growth. encouraging medical news for edward life sciences carried that stock to new highs. today's 7% rally came as an f.d.a. advisory panel endorsed the company's artificial heart valve. the device can be used for patients who cannot have open heart surgery. and a couple of food-focused stocks. super market chain kroger reported stronger than expected earnings and raised its forecast. shares were up 6%, but pork producer smithfield fell almost 6% after a disappointing quarter. in our exchange traded fund market flash, all five of the most actively traded e.t.f.s were higher, led up the financial sector fund, up 1.2%. and that's tonight's "market focus." >> susie: tonight, we

they say they were familiar with gaines. he was on probation and had been arrested at least once. >>> bart has higher a mental health expert to advise police officers on how to handle tense situations with individuals who might have mental health issues. it will help police defuse potentially dangerous situations such as the one that occurred at the bart station last july that's what you are looking at. when a bart police officer shot and killed 45-year-old charles hill a transient who was drunk and holding knives. the hiring of the mental health expert fulfills another recommendation made in the report following the 2009 of shooting of oscar grant. >>> the women who drove two men from dodger stadium the night brian stow was attacked. the sister of louie sanchez. she has not been charged in the crime witnesses say doreen may have egged her brother on to the attack. prosecutors say she drove the getaway car after the beating. stow suffered major brain injuries and is now undergoing rehab. >>> defense secretary leon panetta is

are taxed at a lower rate than income gains. >> yes, we are.make a comparison to the u.s. in europe and japan what you find is the most talented people in the u.s. are earning and producing way more than their counterparts in europe and japan. and at the very worst, and i think you really have to look at the data in a skewed way. at the worse the middle class in the u.s. is about the same as europe and japan. if you really dig into the data which i do in the book, i think you make the argument that they are substantially better off in europe and japan. >> but we're not talking about europe and japan. we're obviously talking about america. and in america, the middle class has, their income has not grown to the same proportion as that very rich investor class. and i think i take issue with the idea that they are facing risk because it strikes me like the example of let's say the guy at lehman, the company went brupted and he walked away with, and i am not obviously an economist, i think the word is a [bleep] load of money. so what is the risk tha

. >> derrick gains was shot here at the gas station. police administered cpr, but the boy died at the hospital. there was a big crowd at the gas station as they put up a memorial for the young man who was shot by a south san francisco police officer. >> i want a face-to-face apology. it is for me and my family for killing my baby. >> a mother's words to the south san francisco police officer who killed her son, 15-year-old derrick gains. rachel and other family and friends gathered at the arco station where he was shot last night to remember him. >> hopeful leahy won't have died for -- hopefully he won't have died for nothing. >> they were at the gas station when the officer spotted them. the officer said they were acting suspiciously. this security video shows them running past the gas pump. the officer said he ordered the two to stop. the friend complied, but gains ran. >> the suspect produced a handgun from his waist band at which time the officer in the protection of his own life discharminged -- discharged his wife weapon striking

the nikkei did gain ground yesterday as well. it was up around 2%. yen weaken around 1% as well, which really did help those exporters, which have been heavily sold off in recent sessions as we very well know. as you mentioned, their focus on the european central bank. they held steady on rates, but really the focus also on what the federal reserve may say and words from chairman ben bernanke later today in the u.s. as you mentioned at a joint banking committee. testimony there. really, the fed in its latest economic reading still also came out and said that economic activity in the u.s. is proceeding at a moderate rate. so not only did we see stocks actually trading higher, but also we're keeping track of commodities as well. we did see gold gaining significantly to its highest level in app month. also, wti crude oil prices rising. we're going to keep track of shares and sectors in japan which will be affected by those aatur vels as well. that really tells picture. the yen haween a touch lot utring with recentda.measu. th u. a rht a bl ttrsssneor ie

eliminate the capital gains differential, tax all income the same way.as you heard, the ronald reagan supported it, and the bipartisan bowles-simpson commission did as well. the argument rolled out by those givens this is we need to create an incentive to get people to invest. but there is no evidence at all to support their view. none. they are simply wrong. hence reagan's support for our view. those who take the other side are like the russian economist who opposes an idea by saying it works in practice, but it doesn't work in theory. well, they are wrong in practice and theory. and here is a little data point that proves it. even with all the incentives we've given to those who control capital there is only 2 trillion-dollar sitting on the sidelines not invested. the so-called job creators haven't created jobs. instead, they've pocketed the cash. why? not because of the tax code, but because you don't hire people to produce more widgets if nobody is buying them. this is a demand crisis. demand drives investment, not the existence of a lower capital ga

the dow gained 286 points, soaring 2.3%.q scored a similar gain percentage wise, scoring 66 points. nasdaq is shelling out $40 million to help cover losses of investors who are affected by technical glitches on facebook's first day of trading. the amount falls way short of the claimed loss of $115 million suffered by the top four investors in facebook's ipo. technical glitches prevented investors from knowing for hours if their trades went through on the first day of trading. nasdaq says the rebates and cash would be distributed within the next six months. >>> the voters in san jose have now made it clear, they're ready to roll back union pensions. but as our consumer editor tom vacar reports, it may be awhile before the newly passed measure b sees the light of day. >> reporter: san jose's public employee union filed two lawsuits this morning, one to kill measure b as unconstitutional, and the other to block its implementation until a final court ruling. >> we had a hearing this morning before judge lu cas, and in that heari

you you're going to gain the political revolution in egypt maybe in food the cultural one it seems just getting stuff to serve you. well remember we've got all the latest stories and videos now i have sired dot com to check out what's waiting for you there right now. why would a u.s. presidential hopeful mitt romney make an appearance at this year's top secret building her conference known for being anything other world movers and shakers that's the gate with us. and where all the running beast it's been discovered that thirty thousand years ago the stone age people were using animation techniques in their cave drawings creating an impression of animals moving. while the european commission has proposed more control of banks which means they would come under much greater central oversight of this comes after financial institutions of europe's economic bastiaan germany felt the global european squeeze following the downgrade by moody's on wednesday investment advisor patrick young says europe is now paying a high price for turning a blind eye to problems which a blog existed. we've reall

against the dollar it's gained a massive amount over the past two days and that's on basically hopes that. central banks will be intervening and providing stimulus and therefore the euro will not be going down with even the bad case scenario for the greek elections and the russian ruble managed again against their currencies. also u.b.s. has recommended its clients to buy into rubles against the dollar the bank says this could provide investors were potential four and a half percent gain if they do it before the elections in greece which take place as we mentioned on sunday the lenders analysts believe riskier currencies could bounce if greek parties supporting a european bailout. when the voting they've laid out a higher yielding assets can still rise because until banks may be forced to support the market so it's kind of a win win situation they're not going to service this week's business report you can join their currency bill being a twenty year moscow on monday you have a good weekend and we'll see you next week reporting from the st petersburg economic forum and so will you se

capital gains tax rates have been in the news. the buffet rule, capital gains tax rates are at their lowest level since the great depression and some, one question is, why are their such large income des parities and some imply that it is a matter of effort and that the rich work very hard. clearly that is not the case. there are some people that report because they don't work very hard. and their incomes have stagnated. if you look at a set of charts that were handed out at the beginning. one of the slides shows the median earnings going back to 197 0rks 1974. they have been basically flat. the economic gains that have produced huge incomes, the top 1% and i'm sure a lot of you have seen the figures before, they declined a little bit in the recession, but they were through the 1960s, 1970s and early 80s. incomes at the middle have been flat lined. now the question is, what do you do about that? and there is the question about how much access people that different income levels have to those income levels at the top. the children