. >> water spilling out of an eight inch pipe cut a gulch. a section of pipe about 25 feet across fell away with a shear break at either end. rain is expected later this week. >> that is what we're take skpg to put down some of the materials and try to stabilize the gulch created as a result. >> the sandy mud cut a swath of misery, swapping what was a grassy field and trapping parked cars in the grip. nick cage tried to drive through an intersection thinking it's just water. he got stuck and struggled home through mud two feet deep. >> was there difficulty in walking back through the mud? >> it's hard to pull up. >> yes. >> his om bos is not sympathetic. >> what kind of mud? there is no rain. >> man yule watched as his car sat trapped. he missed around important training day in his nursing program. >> we're stuck here. >> job one was cleaning up the street. job two to stabilize the hillside. third figuring out what to do about mud covering hillside park. >> car owners dheening up the damage and can get reimbursed. >> we're here now with infor

members of congress, well, gucci gulch was a place of, not of celebration, but of despair after 1986 because all of these tax loopholes were closed, rates were brought down in a way that was actually making the tax code more equitable. and that was considered to be a big step forward for the public interest. well, a few years later lobbyists had written a lot of these loopholes back into the tax code. ten years later, you know, you could hardly see any traces of the 1986 tax reform act. almost all of the good government public interest reforms that were put into the tax code in 1986 overcoming the lobbyists have been put back in, you know have been overwhelmed by the day in, day out lobbying to get those tax provisions right back into place. >> quite a cycle. i mean, if you're creating a winner-take-all economy, the winners have more money to contribute to the politicians, who turn it into a winner-take-all politics. i mean it just keeps -- >> right. >> the stories that we try to tell in this book. that there has been a 30-year war in which the sound of the voice of ordinary american

. >> water cut a gulch about 300 feet long,. a section of pipe 25 feet across, fell away with a shear break. the water department thinks the hillside will hold for now.. >> this is going out to look at the stability of the hillside behind 12 homes evacuated until this morning. >> the sandy mud cut a swath of misery. swapping what was a grassy field and trapping parked cars in its grip. nick tried to drive through an intersection to go to work just after 5:00 this morning. thinking it's just water. he got stuck, left his car in the middle of the intersection, and struggled home through mud, two feet deep. >> was there difficulty in walking through the mud? >> oh. yes. this first was stuck here, it's hard to full off your feet. >> scary? >> yes. yes. two feet. >> his bosz -- boss was not sympathetic. >> my boss don't understand me. and it was -- what kind of mud? is this no rain. >> man yule watched as his wife got stuck in the muck. he missed a important training day. >> i want to call insurance, maybe for the damage. i think the

there's gucci gulch for all the lobbyists tell us how to write tax policy.nesses draft the bills and draft them for the republicans. talk how that works. i don't think the public knows some of that. >> they're doing exactly what you're saying. they started out by doing it. the 401(k), it was never intended to be a national retirement plan. it was stuck into the legislation by barbara conable, an upstate new york republican as a favor to xerox and kodak because they had their head offices in his home district. they wanted a tax shelter for retirement payments to executives. that's how it started. they wrote it. it was 401(k) because it's 401 provisions down in the tax code. it was so small nobody knew it was there. you guys didn't know it was there. >> instead of having a solid pension with a guaranteed annuity coming to you, you have 401(k)s which have shrunk in many cases over the years. >> what you got is hundreds of billions of dollars of expenditures are shifted from the corporate books into the pocketbooks and wallets of ordinary people. it's a disaster

there's gucci gulch for all the lobbyists tell us how to write tax policy.ot of businesses draft the bills and draft them for the republicans. talk how that works. i don't think the public knows some of that. >> they're doing exactly what you're saying. they started out by doing it. the 401(k), it was never intended to be a national retirement plan. it was stuck into the legislation by barbara conable, an upstate new york republican as a favor to xerox and kodak because they had their head offices in his home district. they wanted a tax shelter for retirement payments to executives. that's how it started. they wrote it. it was 401(k) because it's 401 provisions down in the tax code. it was so small, nobody knew it was there. you guys didn't know it was there. >> instead of having a solid pension with a guaranteed annuity coming to you, you have 401(k)s which have shrunk in many cases over the years. >> what you got is hundreds of billions of dollars of expenditures are shifted from the corporate books into the pocketbooks and wallets of ordinary people. it's

we're looking for gulf's gulch and wondering who is going to build that lead up there, i don't know.s a good question. >> that's interesting. you are in touch with all of these rich folks, we know they're selling assets and getting cash, but you don't know where that money is going? you want to guess? >> well, probably, well, probably the most common answer i'm getting, stuart, they're moving it off shore and i'm hearing lots of different countries they're moving it to and trying to find a safe haven because they know that the taxes are going to be higher than the obama administration is currently citing and they're afraid and they're terrified. >> that amounts to tax evasion, you move money off shore you've got to declare where it is and any income that you made on it. and are you telling us that rich folks are basically avoiding taxes? >> well, i think they're trying to be creative, like they always have been of the creativity makes the rich wealthy and that's what i found out over interviewing them over the last 30 years is that creativity is the best thing and i think they're try