today the heritage foundation released a study homeland security 4.0. this is the third in a series of studies overcoming centralization, complacency and politics. as the subtitle suggests we must overcome the challenges. the first -- centralization to make it in washington. it does not just protect us from centralization of power in washington but also recognizes the reality that state and local governments possess resources, geographic locus and experience to protect us from the threat. the second is complacency. if the united states becomes complacent or focuses on the past we will pay a heavy price. the other thing we must do a better job of identifying emerging threats, encouraging private sector innovation and breaking down barriers that prevent disconnecting about. politics. over the last decade political considerations have cost far too many political decisions. this has created oversight inefficiency and left america less secure. of politicians left politics at the committee or we could do better. to date we are privileged to have two preeminen

rory is direccor 6 communications for the heritage foundation. start with michele bachmann's blooper machine. check out what they said in a radio interview just yesterday. >> there's a fear that the united states is in an unstoppable decline to see the rise of chaina be the rise of india, the rise of the soviet union and our loss mill tearily going forward. >> the soviet union. does she realize -- now this is a lady that's going to -- well, is running to be in charge of foreign policy. and she doesn't realize that it doesn't exist any more, that it dissolved in 1991. the same day bachmann justified her job at the irs. >> a chance to learn about the enemy. >> how many of you love the irs? no. it's time to change it. i went to work in that system because the -- the first rule of war is know your enemy. so i went to the signed to learn how they work because i want it defeat them. >> now, nia, when i ran, i did saturday night live and we were never that funny. but do you think that these guests are going to really matter to the far right voters that

thought of this is already unleashed a wave hysteria from neo cons and cheerleaders like the heritage foundation and of course senator lindsey graham. i don't know why they're going to pick a number of a few in there and start reducing the defense department we're slowing the growth of the but we're still got massive instead of running toward bankruptcy we're walking toward bankruptcy. but you know just throwing numbers around is ok when it comes to entitlements social programs but not for defense isn't it but in all reality this is kind of a big deal that suddenly defense is being threatened and it may be a serious way to do we see this is a real threat or is it just a line intended to keep the military industrial complex going on forever and this guy says if we have lieutenant colonel anthony shaffer senior fellow at the center for advanced defense studies and he's also still serving as a reserve lieutenant colonel tony thanks so much for being here today rather than ok so a lot of this is speculation of course they haven't voted on it yet hopefully we won't do you call this is going to go thr

that was only mcnamara heritage foundation now in the u.s. economic turmoil brew as it may not be taking out on the streets right now as we're seeing in london but it is taking it out on the stock market it's been a volatile week to say the least the market has swung hundreds of points in just minutes we saw that today and the dow jones closed down more than five hundred points now the federal reserve you. after day came out and announced that they'll keep interest rates near zero for two years but do central banks and leaders even have any of the tools left that will work earlier that is one of the questions that i asked financial radio host an economics blogger i meet your coffee nuts here is part of our conversation. course not that's going to happen and the downgrade of the i stand here because of the united states whether it was worth it or not i think speaks volumes about the shift of risk from the balance sheet of banks the balance sheets of sovereign countries which are effect of the backstops for the welfare state so when i get throu

go like i mentioned we are here seeing hysteria from people like senator lindsey graham the heritage foundation is already coming out making statements that say the democrats want to favor economic security over national security and how dare they but when these people ever get into the two are intertwined that's right and i think that's the issue here it's all good drama i think much of what we've seen of those sides you know it fundamentally conserve them and conserving my beliefs has been great theater i mean you know we're talking about people who do have a vested interest in both sides neither side is going to go grab hard against the fence and he started going to do a better of against economic issues therefore all they're doing here is once again kicking the can down the road they're offering up something that they know no one will have the courage to cut one a time comes in november so if you had to think of some kind of let's say you look at real placed full programs how much do you think would be cut from defense let's just say you know hypothetically if this trigger was to say then t

the most that we saw in arc america heritage foundation. now the u.k. impose austerity measures not too long ago which have affected the lives of people many who are now looting on the streets of the u.k. not too long ago two austerity measures push people into the streets of greece is there a connection and could this get worse as the u.s. and the global economy head towards what some call recession what some say could be a depression well joining me from greece is a radio host and economics blogger to me who was covering those protests and greece when they were going to meet thanks for being here. so my first question to you cover the protests in greece you were there when people in greece reacted to austerity measures you talked about the toll austerity measures have taken on the economy of greece people have suggested these riots in london two are fueled by economic issues lack of mobility inequality austerity measures do you see a connection between what is going on in greece what's going on in the u.k. and what's happened in europe you know in por

i appreciate you and i am a real fan of the heritage foundation as well. host: this comment coming in from new mexico -- host: do you believe that the democrats want to destroy the military? guest: no, i do not believe that. government is about choices. you have to make difficult choices. article 1 of the constitution says the primary responsibility of government is to provide for the common defense of the american people. it is a fundamental responsibility of the politicians here in washington. as a part of this at the ceiling debate, it is very disconnected from the budget. all the focus was on the discretionary side. i do not know about these -- i do not know enough about these programs to suggest how all of it would change. you could 0 out the defense budget and we have not solved any of america's the scope problems. so i do believe strongly that economic and military security are mutually reinforcing. we need a strong economy to fund a strong defense, but you cannot cut defense in the hopes of saving the economy if you are perceived as a weak nation a

this is him speaking at the heritage foundation this morning. >> this is a total disaster. it's a disaster in process, a disaster in constitutional means, and disaster in solving our major problems, which by the way, start with the economy and jobs. they don't start with the deficit. the deficit in part is a function of the economy. >> all right. there's newt gingrich saying essentially that the deficit isn't as huge of a deal as many of his republican counter disparts. is that a glimpse of his new strate strategy. >> i think that's his are original strategy, but backed up with a substance of his professional record and deep knowledge of history in the commit. let's talk about his economic plan, for example, it grows out of his time as speaker of the house. during those years, for four consecutive years, he helped lead -- let me finish for a second. >> hold on one second. why don't you think that message has picked up traction yet with voters. >> you have to remember this has been a very unusual election cycle. we started quite early with the republican presidential field,

we have heritage foundation, which is a big tank that does research. if there was about a couple months ago on a firefighter grant program which is the type of thing that sounds great, but the heritage foundation has done a study in 2006 on this program and look at all the fire department's that's got funding from the federal firefighter grant program and the ones that did not. it found no difference in outcomes such as fire fighters safety, civilian safety, property damage done. this is wasteful money. regardless of whether the federal government even should be giving money to local fire departments for exercise equipment, even if you think they should, this is a program that does not work. we thought it would be a smart idea to put an amendment appeared to double the funding for the firefighter grant program. all 86 republicans voted against it. we look at votes that are telling, that still depends upon 9 budget is a fantastic budget and it's on our scorecard. it is a big step in the right direction. that should be in our scorecard. every republican

critics of the law like the heritage foundation's brian walsh say the court was right to reign in the federal government. >> the federal government's been given specific power over interstate commerce. making a decision not to buy health insurance is not interstate commerce. that's stretching the bounds, that's stretching the conceptualization of what interstate commerce is beyond all recognition. >> reporter: but the circuit court left the rest of the health care reform law intact, and that could be a huge problem for health insurance providers. beginning in 2014 they will no longer be allowed to deny coverage based on pre-existing conditions. but if individuals don't have to buy a policy, they may wait until after they get sick to shop for insurance. and companies would still have to sell them a policy. >> it becomes a real problem because you essentially have all the stick and no carrot. this means you won't get nearly the number of new enrollees that you thought you would. >> reporter: another apelate court in cincinnati has upheld the individual mandate. the court in atlanta has

youed hat heritage foundation and club for growth, move on on.org and other groups on the left opposingbut the senator held. as long as they clear the 60 vote threshold, the folks vote nothing can do it for all sorts of political reasons, but they ignore the larger responsibility which is to make sure that the nation ignores refault. and then we move on this committee and we'll see if people are serious about dealing with the deficit and debt. so i just think let's not lose sight that while there's no question the extremes have brought us to this brink, there's a good story to be told today because the senator did hold and we were able to reach a constructive compromise. >> the senator didn't hold. the senator went into hiding. let's be realistic. there was nothing here except a decision -- it was an example f bort parties failing the country. issues of spilgtsment reform were taken off the table. reforming the tax code wasn't even addressed. more cuts were not addressed. so the reality is what congress did and what both parties did was choose to really divert the major issues to anothe

we'll hear from heritage foundation foreign policy and government fellows. they will talk about the need for new technologies to curb the growing cybersecurity threats and the future of homeland security 10 years after 9/11. this is just getting underway. >> -- for house majority leader dick armey of texas and prior to that heritage's director of congressional relations. he also served in the office of national drug control policy and legislative council for former representative william danemeyer of california. join me in welcoming my colleague, mike frank. >> welcome, everybody, on this nice august day. as you all know on september 11th, 2001, america experienced the single-worst terrorist attack any country suffered in modern times. well it is about 10 years later and the nation has undergone tremendous changes in terms how we safeguard the american homeland. there have been a number of successes that should be acknowledged and celebrated and chief among them since 9/11, no fewer than 40 terrorist plots have been thwarted. some of these successes can be a

james joining from us the heritage foundation, sir, thank you very much. >> thanks for having me. >> bet. very fluid scene this morning. we don't know what's going to happen to muammar qaddafi. maybe some time in our broadcast, he'll be brought to justice. we move ahead. >> keeping a very close eye obviously on the situation in libya after rebels made major advances overnight. we're hearing now they have control of 95% of tripoli. we'll have the latest in about two minutes. stay with us. >> all right. this is a fox news alert and we have lots to talk to you about early on this monday morning. where in the world is muammar qaddafi? we don't know exactly but we do know the streets of tripoli are filled with thousands of rebels. as you can see, shooting guns every which way. celebrating that they have overtaken that city. >> rebels and revelers. >> fighting force that was supposed to be the last breath of protection for muammar qaddafi evidently surrendered as the rebels started entering into town. >> you know why, the commander of that, his brother was killed by muammar years ago. >> f

the conservative heritage foundation says the overwhelming majority of the poor live in decent homes. most with two tvs, a dvd player, and a vcr. a kitchen with a fringe, microwave oven and stove. their point that statistics can be misleading. republican senator orrin hatch says democrats just don't get it. >> i hear how they're so caring for the poor and so forth. the poor need jobs. they also need to share some of the responsibility. >> so that brings us to our talk back question of the morning. do the poor share responsibility for our economic woes? facebook.com/americanmorning. facebook.com/"american morning." we'll read your responses later this hour. >>> the other big and tragic story of the weekend, ahead on "american morning," family and friends remembering fallen heros after the single deadliest incident of the afghanistan war. >>> new details on where the elite navy s.e.a.l.s. were heading when that chopper went down. >>> heart stopping high wire act between two hot air balloons almost goes horribly wrong. what happened when the winds started to blow. >> my hero. 61-year-old

thank you for joining us at the heritage foundation.it is my privilege to welcome you to her louis letterman leatherman out of torian and to welcome those who join join us on our heritage.org website. we would ask if everyone in house to make the courtesy check the cell phones have been turned off as we prepare to begin the program. we of course will post this on a website within 24 hours for everyone's future reference as well. internet viewers are always free to e-mail us questions or comments at any time. simply addressing to speaker@heritage.org. posting our discussion is james jay carafano, director of allison for foreign policy studies and is deputy to her to the shelby: davis institute. he's a member of the national academies board and army science and technology in the department of the army historical committee is soliciting your fellow at the washington home of security institute. he's lectured and then a professor southern university camps is. he was lieutenant colonel carafano serving in europe and the united states. he has

previously packed conferences also raised concerns with large right wing organizations such as the heritage foundation media research center and the family research council but this doesn't bode well for avoiding a movement rift maybe they're thinking oh go proud to bring all of blood back into the scene packed sense you know like the religious right the policy wonks over at heritage but consider this as c pac representatives ailing more and more self-proclaimed conservatives are they exacerbating a growing rift among the right the winds are blowing towards the tea party towards libertarianism towards the live and let live volunteers ferocity and towards tolerance for homosexuals and yet the a.c.l.u. and its new c pac director are moving away the g.o.p. establishment is infuriated the tea party with the recent that compromise and even more so with the foundation of the so-called super congress even in the midst of political chaos establish conservative organizations are failing to unite coalitions under banners of even pragmatism one has to wonder what the future holds for the conserve movement as a w

mr human events contributor to red state dot com and director of government studies at the heritage foundation welcome you don't let's get started. that's official it's official dick cheney has a new book out in my time in it he's bashing rice tenant paul he wanted to attack syria. this this is the probably the most aggressive dr who ever got five deferrals from from the draft that i've ever heard of in my entire life here he was in an interview with n.b.c. not only admitting to work right seemingly to brag about this in your view we should still be using enhanced interrogation yes no regrets no regrets should we still be waterboarding terror suspects i would strongly support using their baby and if circumstances rose even though so many people have condemned it people call it torture you think it should still be a tool just. and then george w. bush in his book decision points basically said the same thing you said three people were water boarded i believe that decision saved lives so is it time to convene a war try and war crimes tribunal and try these guys for the crimes that they've confess

now people who fund clarence thomas' wife jenny they have you know they have some ideas the heritage foundation is of the right wing think tanks that are funded by the koch brothers and others but they're not sure which ones are going to work which ones are going to work best which ones will work worse so they need to test them we sconce it is their testing ground the big questions that they have how far can they go with their lies how can they brought in what to what extent is innuendo work habits snorers you know it could build build up your side or you try to destroy the other side there's a lot of good questions here about you know last minute for example unanswerable charges most of most of this stuff has been tried for a long long time in american politics but never against a really ferocious populist movement i mean basically the entire state rose up over one hundred thousand people showing up at madison this is not like your average political campaign where people are basically getting their news on the couch watching the commercials in the three weeks before the election this is how do

talking heads and he's also a total nut job feed today took part in a panel discussion with the heritage foundation which is a think tank based here in d.c. and they are discussing the possibility of an electromagnetic pulse attack or an e.m.p. on the u.s. that would be an attack on our country's electric and technology greats. is the brink think that think that's probably going to happen and they during the event he reportedly said bar none the threat to us that i worry most about is he now this must be a big deal for frank to make those comments so we did some digging today and found a video of frank's groups that placed on line about a possible m.p. attack whether it's not designed to kill americans at least not directly about what instead it is meant to be paid in the making pots that destroys electronic devices and power grids. scary stuff theory fact about two years ago frank was quoted over at think progress talking about a potential e.m.p. attack and he said within a year of that attack nine out of ten americans would be dead because we can't support a population of the present size and urb

are only getting louder at first it was your typical warhawk lawmakers organizations like the heritage foundation and then leon panetta the new secretary of defense got in the mix saying that three hundred fifty billion would be hard enough and even called the trigger a doomsday mechanism after which the democratic president barack obama are firmly he agreed with panetta now don't forget the panetta also said he thinks that before congress takes another swipe at defense they should come from social security and medicare and raise taxes but if we want to read we've through some of this hysteria try to figure out what could actually happen what could actually get cut well you have to look at much farther than the statement that you're officials make these are the facts that they don't want publicized according to that in this debt deal that was signed they managed to slip in there would it would apply not only to defense but also security spending which encompasses programs such as homeland security border enforcement foreign aid and even even veterans' benefits as potential targets around washingt

contributor to red state dot com and big government dot com and director of government studies at the heritage foundation welcome to all of you and let's get started. officially. the economy added one hundred seventy seven thousand four hundred seventeen thousand jobs we get we got this news this morning the seventeenth straight month the president had this to say about. but while this marks the seventeenth month in a row of job growth in the private sector nearly two and a half million new private sector jobs in alt. we have to create more jobs than that each month to make up for the more than eight million jobs that the recession collect so that's the good news and contrast to have million new jobs so far to bush's three million for his only years but the bad news the dow dropped five hundred twelve points yesterday it was back a little bit today with this news but it. wiped out the old gains of the year bad manufacturing numbers bad service sector numbers slow g.d.p. growth rate economic policy institute says that as a result of this deal that was cut between democrats republicans that it is going to

the heritage foundation is releasing a counterterrorism strategy, an alternative to this administration'sd what we have learned. it is an assessment of not what we learned from 9/11 -- i get very angry of people who are very reflective and use 9/11 as a baseline to determine how far we have come. it is interesting, but irrelevant. the world has moved on. the world that we live in today and in terms of what we do and what evil people who want to kill as what to do is significantly different. so looking at 9/11 is really fighting the last war. we have to deal with the threat that we face today and we have to learn from what we have done in the last 10 years. that is what we have tried to capture in our counter-terrorism strategy. the foundational part of the strategy is looking at it empirically on america's experience in combating terrorism over the last 40 years. i have asked two of our premier analysts to talk about some of the empirical research ribbon to understand terrorist trends. speaking first will be dave small house and -- dave m uhlhausen. he will talk about a tax here and world

i worked with the heritage foundation for a very long time. and, it is a remarkable institution. i particularly want to commend heritage action for the work they that have done on the deficit and if you look over the years at the range of new ideas, the range of new proposals, the number of conferences that heritage has sponsored, it is a major force in the city and in the country. and has played a significant role and i hope will continue to and so i was delighted to have the opportunity to come and be here today and to talk about what i think is one of the most important crossroads in american history. i have... just as background for a minute, because, i want to say some things that are very bold. and i'd like to somehow get across particularly to the washington elite, that boldness is sometimes exactly what we need. that it is not pie in the sky, not, you know, fantasy land, i have lived through two cycles of real boldness, in 1979-1980, the economy was collapsing, rationed gasoline, either other day based on the last number of your license plate, jimmy carter was giving a spe

>> thanks, jim, 2007 the heritage foundation became the first and only organization tracking terrorist plots against the united states. that year we reported 19 publicly known terrorist attacks against the united states have been thwarted since 9/11. today that up number stands at 40. the fact that the united states has not seen a large-scale domestic attack since 9/11 truly speaks to the counterterrorism successes. simply applauding our achievement and taking forward-looking approach to preventing the next potential attack is not nearly enough. reviewing terror plots thwarted since 9/11 wan provide valuable information in understanding nature of the threat and preventing the next attack. two the most well-known plots in recent memory are the christmas bomber in 2009 and times square bomber in 2010. these plots made the headlines because these were too close for comfort. thwarted not by the intelligence community or swift response of law forcement but by swift action of the public. along with the shoe-bomber richard reid in 2001 are two examples how every day citizens prevented terrori

next time -- the heritage foundation, i do not know why you would have him on there.s white -- right wing think tank. talk about the rich and what they contributed to society. guest: one of the points that i am making here is it is very important for you to understand that when john stewart or anyone else uses these figures about how much the rich have versus how much the lower half of the population has, the fact that we take $1 trillion away from the rich and give it to the poor and welfare programs is not counted. we do not count the taxes paid by the rich. those inequality figures are meaningless. the entire welfare state is across the book. the taxpayers are in a bizarre set to ration. you say we have all of this party, and take $900 billion away and give it to low income people. when you count party the next year, you do not count any of that $900 billion. it does not make any sense. the average poor american is very upper-middle-class by global standards. they have air-conditioning, a cable-tv, a computer, microwave, up 40% of them have a plasma tv. if they hav

and discuss this is sally mcnamara senior policy analyst in european affairs at the heritage foundation thanks so much for joining us tonight now of course you are far from britain so you're really watching some of these scenes from iran country what is it what exactly do you think is going on here because we've heard a lot of different arguments depending on what your political leanings may be from the media from politicians that multiculturalism may have failed here this might be a welfare state issue that kids have no opportunity but what do you think it's well first of all i think it's a national bars and i think it is just absolutely crazy that three months ago we had a million people in london for the royal wedding not one security incident fast forward three months of we're seeing these riots the government needs to be more prepared because this is been fifteen years in the making and we know that there are huge problems in these communities this isn't the working class versus the rich class this is a whole underclass of kids who have never seen their parents go to work have chil

on global and domestic terrorism over the years.fforts you ar watch live coverage from the heritage foundationor politics and public affairs, nonfiction books and american history, it is the c- span networks. it's all available if on television, radio, and online, and on social media sites. search, watch, and share all our programs anytime with c-span posted video library, and on the road with our c-span digital bus and local content vehicles, bringing our resources to local communities if and showing events from around the country. it is washington your way, the c-span networks, created by cable, provided as a public service. >> , up next, "washington journal" will take your calls. with the new king of national memorial set to officially open this weekend, we have a forum on civil-rights leader today. they will recognize a number of individuals who have made civil rights contributions, including reverend jesse jackson and u.s. attorney general eric holder. live coverage here on c-span and 12 noon eastern. we will look at the u.s. economy and the latest congressional budget office report. repo

. >> this morning, robert rector from the heritage foundation looks at the effectiveness of federal socials. then daniel serwer from the john hopkins center discusses what the u.s. and european leaders are calling for the removal

it is like automatic enrollment and we propose heritage foundation has been very supportive of this. many other organizations have been tremendously supportive. members of congress on both sides of the aisle. the concept which the retirement security project launched some years ago was adopted by the candidates. senator obama and senator mccain. both indicated support for it and senator obama put it in his platform as a central component and as president has continued to oppose this in his budget proposals. a tax credit would go to the employers that do this, what their employers use their payroll system and no employer that has a plan would be asked to do this. it would be employers who don't sponsor a plan and have more than ten employees and been around for a couple years. the idea is it should be as easy as possible for the employer. minimum of hassle or burden for the employer and no outlay. employers not contributing no outlet cost. has another item on its to do list with things like income-tax withholding that it has to do for its employees already at the federal or state leve

. >> sean: the heritage foundation reported today as we look at images what has been going on.a new libyan draft constitution has been posted online. it does mention things like that are familiar to western democracy, like rule of law, freedom of speech, freedom of re john. multi-part electoral system. -- despite that it says islam is the religion of the state. and the principle source of legislation is islamic jurisprudence. in other words, sharia. >> this is one of the reasons why david cameron went back to work from his vacation. because they know and we should, the so-called tnc the transitional national council is made up of tribal clans, radical islamists, technocrats and they don't know what going to come of this. the chairman of this tnc is a former gadhafi justice minister. and defected and now he's claimed the title as being in charge of it. what i think we are looking at is the possibility that libya becomes a somalia with oil. with tribal warlords and of course piracy. the kinds of things we've seen in the past. there's no guarantee this going to turn up as everybod

from the heritage foundation. we have a lot more coming up.ngrade will get lawmakers to focus on this? think again. . [ male announcer ] this...is the network -- a network of possibilities. in here, the planned combination of at&t and t-mobile would deliver our next generation mobile broadband experience to 55 million more amecans, many in small towns and rural communities, giving them a new choice. we'll deliver better service, with thousands of new cell sites... f greater access to all the things you want, whenever you want them. it's the at&t network... and what's possible in here is almost impossible to say. >>neil: s&p down grade and the senate investigates, the senate banking committee focusing on the rating agency that says it is the problem. my guest says it is in wonder only 24 percent of americans say members of congress should be re-elected. and now, larry, i guess shot the messenger and kick them when they're down not that s&p doesn't deserve some roughin' up here. where is this going? >>guest: well, there is a hidden message here.

live coverage is from the heritage foundation. >> for politics and public affairs, nonfiction books,and american history, it is the cspan network's all available on television, radio, and online and social media sites. search, watch, and share our programs any time with our video library and we are on the road with their cspan to bu digitals bus showing events from around the country. it is watching your way. he sees the networks, created by cable and provided as a public service. >> "washington journal" business next where we will look at the day's news and take your phone calls. congress is in its august recess. the house will come in this morning for what should be a brief pro forma session at 10:00 eastern here on c-span. coming up this morning, we will get an update on the situation in libya. we will talk with a reporter in tripoli and a momenta -- in a moment.

i've been working with the heritage foundation for a very long time. able institution. i want to commend heritage action for the work that they have done on the deficit. if you look at their range of new ideas and proposals, the number of conference that heritage has sponsored, it is a major force in the city and in the country. it has played a significant role and i hope it will continue to. i was delighted to have this opportunity to come here and talk about what i think is one of the most important crossroads in american history. just as background for a minute, i want to say some things that are very bold. i like to get across particularly to the washington elite that boldness is sometimes exactly what we need. it is not pie in the sky, it is not fantasy land. i have lived through two cycles of real boulders. in 1979, the economy was collapsing and we ration gasoline every day based on the last number of your license plate. jimmy carter was giving a speech on mollet's as our future. we have high inflation and had the highest inflation since the grea

i appreciate you and i am a real fan of the heritage foundation as well. this comment coming in from new mexico -- host: do you believe that the democrats want to destroy the military? guest: no, i do not believe that. government is about choices. you have to make difficult choices. article 1 of the constitution says the primary responsibility of government is to provide for the common defense of the american people. it is a fundamental responsibility of the politicians here in washington. as a part of this at the ceiling debate, it is very disconnected from the budget. all the focus was on the discretionary side. i do not know about these -- i do not know enough about these programs to suggest how all of it would change. you could 0 out the defense budget and we have not solved any of america's the scope problems. so i do believe strongly that economic and military security are mutually reinforcing. we need a strong economy to fund a strong defense, but you cannot cut defense in the hopes of saving the economy if you are perceived as a weak nation as a re

senior tax policy analyst at the heritage foundation. a conservative tax tank. how does buffet pay such a low rate. >> capital gains tax equities he pays through company. mostly stocks. tax capital gains lower rate. we do that for a very good reason. lower the capital gains rate. the more capital we have in the economy. capital is what businesses use to produce income and employ people. lower capital gains rate. higher wages for us all. >> didn't he have some deal with bill gates and he pledged to give all of his money away to the bill gates foundation or something so he doesn't have the income to be taxed on a regular income? what about all the income he presumably makes from byrneer hath away. he doesn't pay a salary? is that how it works? >> he talks about higher estate tax. not going to pay one dime of state tax gave fortune to bill gates. >> pay himself a salary pay the same tax rate as workers but he chooses to take it in capital gains. >> he takes it in the stocks that he accrued as head of the company and as the guy making all the decisions. >> forgets a

this privatized medicare, turn it into a voucher program all the rest of these phony baloney heritage foundationup in home districts and they've got a lot of angry people there who have very pointed knowledgeable questions for them. they don't want to repeat that. >> let's go to this very key question here, ken, that is the objective fact that the town hall, which was such a part of building the rage, of creating this firecracker attitude. we've got to blow up and do things and change everything and vote against nothing, or vote for nothing. now once you're in office, and they have situations like defending the budget they passed, getting rid of medicare as we know it, they don't seem quite as horny, if you will, to meet the public? >> well, on both sides it's really become a form for sort of manufactured outrage, and that's not to say that there isn't a real sort of grass roots sentiment here. it's hard to get people to come out to a town hall in the meddle of august when there are plenty of other things they'd rather be doing, but, know what? when you have people coming out, being sort of inve

the heritage foundation just did a study that showed there was a correlation between obamacare passingd dropping the number of people being hired. you are right, everyone is getting tied up in this money. that's why it has to go to the supreme court as soon as possible. it is in the best interests of all americans, all businesses and to me that's the most important thing right now. >> greta: it would not be unusual to go to the full court that's the legal advice. that may not be the -- perhaps not a good decision for america as we stand by and spend money. he might -- [ unintelligible ] that is one issue he has a right to ask the full court to decide this. >> however, if you recall, initially, we asked the 26 states, national federation of independent business, we asked that the court hear this, all the judges at once. you know who objected? the federal government. they didn't want it to be heard. they didn't want all the judges to hear it at the same time. interesting now if they go back, because they lost, they want to do that to drag it out past 2012 election. we need get to the sup