Awaiting News Conference On NJ Explosion; Trump: Clinton's Bodyguards Should be Disarmed; Police Suspect Left Note Expressing

NEWSROOM-07

07

Bodyguards Should be Disarmed; Police Suspect Left Note Expressing

Hatred of Police' Report: 80+Killed In Syria Airstrikes; How Would

Trump's Economic Plan Impact Everyday People?; NFL Quarterback's

Hometown Not Embracing Protest; "Game Of Thrones," "Veep" To Defend

Emmy Crowns. Aired 4-5p ET - Part 2>

ALESCI: Well, Barrack actually we talked about the whole process and what he said is that the problem is WTO has no teeth or no enforcement ability. He questions why we're part of it.

HARLOW: Cristina, thank you. Great interview. More online? See more there. Big name in business backing Donald Trump.

All right, coming up right now is Ben Stein, famed economist, a Republican, want him to dig more Trump's economic plan. Thank you for being here, sir.

BEN STEIN, ECONOMIST: Honored to be here, Madame, thank you.

HARLOW: Where does the robber meet the road as Cristina said, what's the reality? You called some of his plan a, quote, "bad joke" where taxes and trade are concerned. Why?

STEIN: It's a bad joke because we like free trade, it's good thing. Tom Barrack is a friend and he's one of the smartest people I've ever met in my life and a very, very successful man.

But we want China to sell us goods cheaply. Overwhelming mass of Americans are buying Chinese goods not making things to compete with Chinese goods. That's good for us. We don't really want to keep the Chinese from selling us goods inexpensively. That's one thing.

I'd like to take exception against your correspondent because it's really not a gigantic tax improvement for the rich or well-to-do, in the fine print you see many deductions that the well-to-do use, especially mortgage deductions are being taken away by Donald Trump or that's his plan.

It does lower the top rate on high income people very, very slightly, but the deductions hit very, very hard. I think the best thing that's in the -- sorry, I beg your pardon.

HARLOW: He also does lower the corporate tax rates significantly down to 15 percent, talking about big companies and possibly small businesses, although the "New York Times" points out there is a big discrepancy if he actually will give to small businesses as well. That's the argument that it would benefit the wealthy in terms of big businesses getting the tax breaks.

STEIN: The thing is people don't understand what big business is. Big business is owned by a hell of a lot of little people. Big business owned mostly by pension plans and university endowments.

If you cut out corporate income tax entirely, which I think would be a very good idea, the money would flow directly to the shareholders, who are generally speaking people preparing for retirement or sending children to college or higher education.

So there is no real good economic reason why we should have a corporate income tax at all. If they want to raise rates much higher on very wealthy people is fine with me, but the idea that somehow we are doing a bad thing if we lower corporate tax rates is nonstarter economically. There should not be a corporate tax rate at all.

HARLOW: You've heard companies like Tim Cook at Apple and GE, et cetera, talking about how much money they would to repatriate, they would bring back, Cisco saying it too, if we had a much lower corporate tax rate. Let me ask you this, in this speech on Thursday he talked about his plan as being deficit neutral.

STEIN: That's nonsense.

HARLOW: Look back to Reagan tax cuts, yes, they spurred growth but the deficit ballooned. Can Trump do it? What would be different this time?

STEIN: With the greatest respect, Mr. Reagan lowered taxes dramatically in his first years. The next seven years he raised taxes a lot after, every year, and in '86, he raised them in enormous amount.

The idea that somehow the Reagan tax years were all years of tax cuts is not factually true. There is no connection between lower tax rates and increasing performance. Mr. Moore, a wonderful, incredibly nice guy is one of Trump's big economic advisers is preaching that all day and night.

He's a great guy but there's no evidence that cutting taxes increases economic growth, as to Tim Cook or these other nice rich people bringing back money to America, we have a surplus of capital. We don't need to worry about not having enough capital. The country is awash in capital.

HARLOW: Trump says 4 percent economic growth. That's what you're going to see.

STEIN: Out of the question.

HARLOW: Why is it out of question? We saw it in '98, '99, 2000.

[16:40:03]STEIN: Because at that point we were starting to just reap the gains of mechanization of intelligence. We have now reaped those gains. We now have a very different work force. We have a work force that in large measure doesn't want to work.

We have smallest number of people actually working out of the labor age population than we've had in a very, very long time maybe ever. We just have a different world out there. It would be nice to have it but we don't.

HARLOW: What do you mean by that? You just said and I'm paraphrasing here, we have a large portion of the work force that doesn't want to work?

STEIN: We have a very large percentage of the people 18 to 65 years old who simply have dropped out of the labor force and not seeking work, very large and it's increasing all the time. That's been a plus statistically for Mr. Obama because it makes employment numbers look much better.

HARLOW: But what are you attributing that to, Ben Stein? I mean, there is a real big difference between giving up work because of the government benefits or someone looking at economy and saying I've tried for so long to find a job that I can provide for my family on. It hasn't happened, therefore they are not counted in the unemployment rate. There's a big difference there as to the why.

STEIN: I don't know what the why is, I wish I did because my son is one of those people. I wish I could know why and get him to go to work. But what we do know is that the government does pay an awful lot to people who aren't working.

In some states including my beloved California, a mother of three who is not married can get as much in the way of welfare of various different kinds as a starting school teacher or even a starting computer programmer.

So we are subsidizing people who don't work. Why other people don't work, I just don't know. It's happened quite dramatically and it's a very unpleasant characteristic of today's economy. We just don't know why it's not out there.

HARLOW: A lot to unpack there and a whole other segment we need go through that, but it's important to talk about it. We'll have you back to talk about that. Ben Stein, thank you.

STEIN: I would love to do it. Thank you.

HARLOW: Thank you so much.

Coming up next, switching gears, Colin Kaepernick's decision to drop to his knee during the national anthem is sparking another protest in his hometown. We'll go there live for reaction.

Also the influence that the quarterback is now having on high school football players. You're live in CNN NEWSROOM.

(COMMERCIAL BREAK)

[16:46:05]

HARLOW: Colin Kaepernick's decision to take a knee during the national anthem has stirred up a debate over whether it is a sign of disrespect to the country. Now students at some high schools across the country emulating the San Francisco's 49ers quarterback during the playing of the national anthem at their games, but as our Sara Sidner shows usone place the protest has not caught on is in Kaepernick's hometown.

(BEGIN VIDEOTAPE)

SARA SIDNER, CNN CORRESPONDENT (voice-over): Political football has a whole new meaning. What began in the NFL with 49ers quarterback, Colin Kaepernick, is now showing up under the glare of Friday night lights from the land of Lincoln across the country to the golden state where an entire high school football team protested racial injustice.

UNIDENTIFIED MALE: We think about consequences that happen after the game. Boos and negative energy and stuff like that, but it really don't matter. If it's right, it's right.

JOEY THOMAS, WASHINGTON HEIGHTS FOOTBALL: We respect people in the Armed Forces, Army and Navy. Can't say it clearer than that. Not a disrespectful movement. I think it's a smoke screen not to deal with issues.

SIDNER (on camera): While the protest is catching on in some high schools across the country, that is not what has happened at Colin Kaepernick's old high school.

(voice-over): During his alma mater's game, the national anthem played, hands were over hearts and every player stood stick straight, but their hometown football standouts protest has sparked controversy and conversation in Turlock, California.

JOSHUA SMITH, TURLOCK RESIDENT: I think it was disrespectful and he's an idiot.

SIDNER: At Main Street Footers, the once popular Kaepernick dog has been stricken from the menu. Glen Newsome says it was a business decision that most of his customers agreed with.

UNIDENTIFIED MALE: One of the nice things about our country is you get to make choices, but we didn't want it to become a political football and we could already see would develop that way.

SIDNER: But down the street at Juros (ph) Pizza Parlor, Kaepernick's jersey is proudly displayed.

(on camera): Your own brother was telling you, arty, let's take it down. It's not good for business.

UNIDENTIFIED FEMALE: We wanted to satisfy our customers.

SIDNER: And you yourself sort of took a stand. Why do that?

PAPIOLA AGHASSI, BUSINESS OWNER: Here within Turlock, loyalty is a lot. Community is very loyal. So we're going to stay loyal to our hometown boy as his career continues.

SIDNER (voice-over): Papiola Aghassi says she's supporting their hometown guy, not the way he has decided to protest.

(on camera): Have you had customers that have decided I can't be in here?

AGHASSI: Yes.

SIDNER: Is his protest creating friction in this town?

AGHASSI: Yes. There are locals who support him and those who don't.

SIDNER (voice-over): Like Navy veteran, Veronica Mora, she hasn't abandoned her hometown pizza parlor, but she can't stomach Kaepernick's kind of protest. VERONICA MORA, NAVY VETERAN: I was very disgusted and disappointed. It hurt. Like I said, I believe in the flag, the United States of America.

SIDNER: Ultimately the hard-working growing town of Turlock, California is a microcosm of the rest of America. Kaepernick's protest making some uncomfortable and others proud.

UNIDENTIFIED MALE: I think it's generated a decision and that's what he wanted.

(END VIDEOTAPE)

SIDNER: There are certainly some people in Kaepernick's town who really do support him and what he did, but they are more reticent to talk about it. A lot of folks worried about backlash but they say they understand he's simply trying to make America better in their point of view -- Poppy.

HARLOW: Fascinating report. Sara Sidner there for us today in Turlock, California. Thank you so much, Sara.

Coming up next, this --

(VIDEO CLIP)

[16:50:03]HARLOW: "Game of Thrones" looks to reign supreme again at the annual Emmy Awards. Will any surprise newcomers take home a golden trophy? A preview ahead live in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARLOW: The small screen's biggest stars gathering in Los Angeles tomorrow night for the 68th annual Emmy Awards. Our Stephanie Elam has a preview.

(BEGIN VIDEOTAPE)

STEPHANIE ELAM, CNN CORRESPONDENT: Dragon -- and elections and O.J. The Emmy Awards celebrate the year's biggest achievements in television. This year's nominees couldn't be more varied. All eyes are on "Game of Thrones." The HBO saga is the most nominated program of the night with 23 total noms.

MICHAEL O'CONNELL, SENIOR WRITER, "THE HOLLYWOOD REPORTER": It is pretty much on conclusion "Game of Thrones" is going to reign supreme on Emmy night.

ELAM: "Throne's" second consecutive best drama series win facing off against "The Americans," "Better Call Saul," "Downtown Abbey," "Homeland," "House of Cards," and newcomer, "Mr. Robot."

[16:55:05]In an election year, perhaps it's no coincidence the White House hijinks of "Veep" are ruling the comedy side. The Julia Louie Dreyfuss-led show nabbed 17 nominations.

O'CONNELL: Everyone loved the last season. I think it's a favorite to win comedy.

ELAM: But "Veep" has tough competition for best comedy series with "Blackish," "Modern Family," "Silicon Valley," "Transparent," and Netflix favorites "Master of None" and "Unbreakable Kimmy Schmidt."

With 22 nominations, "The People Versus O.J. Simpson" is the one to watch in the limited series categories. The politically acclaimed drama stars Oscar winner Cuba Gooding Jr. as the trouble plagued former athlete.

O'CONNELL: I honestly think that the Emmys will be like the formal coronation for "The People Versus O.J. Simpson." No show has been more talked about, more universally praised.

ELAM: For the second time as emcee, Jimmy Kimmel, will host the small screen's biggest night. Expect the late night comedian to let the zingers fly.

O'CONNELL: I think that everyone is fair game and people will be mercifully mocked.

ELAM: We'll find out who has the last laugh at the 68th prime time Emmy Awards.

(END VIDEOTAPE)

HARLOW: Stephanie Elam, thank you so much for that.

Coming up next, live pictures out of Seaside Park, New Jersey where police are about to hold a press conference about an explosive device that was detonated in a trash can right on the race route for a charity run this morning. What we are learning about the multiple pipe bombs that were found next.

(COMMERCIAL BREAK)

(Byline: Poppy Harlow, Shimon Prokupecz, Tom, Fuentes, Fred Pleitgen, Nick Valencia, Cristina Alesci, Sara Sidner, Stephanie Elam )

(Guest: John Avlon, Julian Zelizer, Lanhee Chen, Ben Stein )

(High: Trump's campaign. Nicholas Glenn's deadly rampage. US accidentally hits Syrian Military in an air strike. Donald Trump unveiled new details of his economic plan this week, live on Thursday. His economic proposal includes a lot of things including lower taxes )

(Spec: Politics; Violence; Terrorism; Crime; Elections; Economy; Donald Trump; Protests; Colin Kaepernick; Awards; Emmy; Syria; Military)

More