bear with me if you will. i want to start by showing you something that the president and most democrats and republicans agree on, and that is that letting all the tax cuts expire would hurt the economy. so if we let all the bush tax cuts expire, the rates go up for everybody as they are set to do by law on december 31st. we would increase tax revenue by $221 billion in a single year. that's a good thing, right? well, sure, it could help the deficit but not necessarily because it of course means less money for families to spend when they spend less, companies don't make as many things. they don't hire as many people and the economy takes a hit. now let's take the president's plan, extending the bush tax cuts only for those making less than $250,000. that will cost the government $150 billion next year. put another way, that's how much tax revenue the government will not get from those people and will need to borrow. washington will get $71 billion in additional money from people

who earn more than $250,000. but obviously that $71 billion was, of course, counted in federal revenue already because the tax cuts are set by law to expire. and that $71 billion is a lot less than the $150 billion tax cut. the people who earn more who are now paying more in taxes have a little less to spend. obviously it doesn't hit them anywhere near as much as it would hit someone who earns less, but it does affect the economy. it would shave about 1% off of gdp. keep in mind that our economy is only projected to grow between 2.2% and 2.8% next year, according to the fed. so the president's plan would hurt growth, not by as much as if he ended tax cuts for everyone. if he continued them for everyone, but still a hit. forget whether you think the tax cut should be extended for everybody, no one or someone in between. even if agree with the president 100%, the numbers show that today's announcement was a lot about politics.

you say, all right, he's a politician, of course. but this is a big play because he's kicking the can down the road, avoiding talking about or paying for other taxes that will go away next year, ones that will hurt the middle class, like the payroll tax cut extension, like unemployment benefits. keeping those, everybody, will cost another $121 billion on top of the $150 billion tax cut for people earning under $250,000. it's a lot numbers. i said, try to stay with us. of course then there's the $1.2 trillion and those automatic sequestration cuts to defense and social services. if implemented, that will slash growth by another 6/10 of 1%. you can see that growth number getting smaller and smaller. why is the president doing this piecemeal? "outfront" tonight, senator chris coons from delaware. i'm curious as to what you think about the fact that he makes an announcement about the bush tax cuts without dealing with all the other taxes that are very important for the middle class.

>> erin, thanks for a chance to be on. as a member of the budget committee, i have to agree that what we need to get to is the much bigger, much harder problem of solving all the different changes, whether it's sequestration or changes in tax rates that are scheduled to kick in in january. what i liked about the president's announcement today is he simply said, let's move forward on what we can all agree on, everybody, republicans and democrats, house and senate, agree that we should not allow these bush tax cuts to expire on the middle class, on the 98% of americans who make less than $250,000. and as he said in his extended comments, we'll let the question of what the tax rate should be for millionaires and billionaires be decided by the election. i do think it's important for us to start giving some tax certainty to small business owners and families. if we could start by solving one small piece of it, that would show some forward progress toward the much bigger fiscal

cliff facing families, companies and our economy in january. >> here's my question. you said the president said the election will decide about the millionaires and billionaires but what about the 3.7 million americans who are not millionaires but earn more than $250,000 as a family? he's made that clear, he's raising their taxes. >> there are between $250,000 and $1 million, that's the position the president's taking. in my view, it helps set the table for the general public. most folks would agree that 98% of americans represents a broad range, more than the middle class, up into the upper middle class. the number that i think the president chose today was designed to strike a balance. in the end, our tax policy, as you mentioned, is going to be about figuring out which tax breaks, which tax expenditures we can afford to continue. and what we have to do to restore some tax fairness that allows the broad run, 98% of americans to accept the cuts in federal spending that will almost inevitably have to come

next year. >> right. and i think most people know that and accept that. all of us as a nation are dealing with that. but what about the jpmorgan analysis said, if this went away for everybody, you get $221 billion in revenue. extending the tax cuts for the under 250, it costs $150 billion. you're only getting $71 billion from the wealthiest americans. and i get to this point only because i'm trying to understand the reality of it is, you can't pay for this problem by taxing the wealthy. you can pay for a little bit of it. but you can't pay for all of it. that's the math. >> that's right, erin. it's not possible for us to either tax our way or spend our way or cut spending to solve the current problem we have. we have record low federal revenues and record high federal spending post-world war ii and we're in our 28th month of private sector job growth. to strengthen that job growth, we have to continue to make some

smart investments. we have to invest in innovation and infrastructure and education. but we have to allow some tax expenditures, some loopholes to be closed or to expire so the broad run of americans believe that this system is getting fairer. >> why wouldn't you go for that, then? why not just go for that and do a deal where you close the loopholes, lower rates but the wealthier end up paying more, you deal with this fairness issue instead of taking the politically easy path of raising taxes on some people and not others and not dealing with the loopholes at all? this thing he said today doesn't do anything with that, nothing. >> my real hope is that we will move forward from this proposal to the broader and more challenging work of trying to engage in comprehensive tax reform. it broadens the base, lowers rates and raises revenue. i'm someone who generally supports the bowles/simpson framework. there are dozens senators, republicans and democrats, work withing together now to try to work out a framework that we can

use to reduce legislation that would deal with all of these very tough questions. >> you're very lowering rates? you would be for -- >> as long as we close loopholes to pay for it. >> you're saying you can't get there right now so do this. but once you extend the tax cuts, that makes it more difficult, doesn't it, for some people rather than others? >> it pushes it into next year. the question of what the tax rate will be for the middle class. that's right. but i also think we have to show that in the congress, we can come together and solve some of these problems. just last week, we managed to finally pass a bipartisan highway bill, something that invests in putting people to work that, invests in strengthening our infrastructure. it took months longer than it should have. but i think it's important that we are still passing legislation that the president is signing into law so that as folks who aren't worried about the election, they're worried about job creation and about our economy, get some positive signals from what we're doing in washington. that's what i hear from the

state of delaware. folks want us to make principled comprehensive, improve the fairness of our tax code and strength tennessee competitiveness of our economy. >> thank you for taking the time. let's bring in john avlon. and, of course, he was honest there, it pushes it into next year. kicks the can down the road. he was very direct about what this does. >> absolutely. and you asked why is the president adopting a piecemeal approach? and the answer is, presidential campaign politics. >> politics, right. >> this is first of all no grand bargain is going to get done. i think there are things congress can agree upon. but in election year, the grand bargain ain't going to get done. the president's trying to draw a contrast that's politically beneficial to him. he's trying to say, look -- he's trying to campaign as the defender of the middle class. he's saying, can we agree to extend the bush tax cuts for the middle class. if not, why not? why does that remaining 2% have to put a giant question mark over the rest of the economy? but it opens him up to the republicans' attack that

segmenting off that 2% is class warfare. that's the debate they want. >> and looking at these numbers, the numbers we got from various economists, extending them for the middle class americans under $250,000 and not for everyone else takes a full percent off gdp. looking at a an economy that's lucky to grow 2% to 3%. you're tact a third to the half of your gdp could go away by not extending them for everyone. the growth does not support, at least on that specific analysis, the point. >> that's why this is ultimately about campaign narratives and campaign contrasts. if the focus is growth and at the end of the day, everyone agrees there needs to be growth, this is about drawing a clear contrast. the real question for democrats is this may poll well. but isn't the real issue, if it's a household making $250,000, that's not rich in many parts of this country. and so it becomes the question, it's not just a question about the growing gap between the super rich and the middle class but families getting caught in the gray area. and whether with that may alienate some very influential voters.

>> a lot of independents in the wealthy suburbs in this country. thanks very much to john avlon. texas fought for its voter i.d. law in court today which could keep more than one million people from voting. we'll tell you why it may hold up in court. a mysterious illness has killed dozens of children in cambodia. we first brought you that report last week. tonight on the scene live, what that deadly illness might be. and george zimmerman is in a safe house and we're going to tell you who's actually paying the bill. the postal service is critical to our economy,

delivering mail, medicine and packages. yet the house is considering a bill to close thousands of offices, slash service and layoff over 100,000 workers. the postal service is recording financial losses, but not for reasons you might think. the problem ? a burden no other agency or company bears. a 2006 law that drains $5 billion a year from post office revenue while the postal service is forced to overpay billions more into federal accounts. house bill 2309 is not the answer. do you have any idea where you're going ? wherever the wind takes me. this is so off course.

nature can surprise you sometimes... next time, you drive. next time, signal your turn. ...that's why we got a subaru. love wherever the road takes you. the global ready one ? yeah, but you won't need... ♪ hajimemashite. hajimemashite. hajimemashite. you guys like football ? thank you so much. i'm stoked. you stoked ? totally. ... and he says, "under the mattress." souse le matelas. ( laughter ) why's the new guy sending me emails from paris ? paris, france ? verizon's 4g lte devices are global-ready. plus, global data for just $25. only from verizon.

our second story "outfront," the state of texas tries to enforce an id law that could keep more than 1 million people from voting in the presidential election. it's one of 11 states with new laws requiring voters to show a photo id. a justice department lawyer says 1.4 million people in texas don't have a photo id. states with a history of voting rights violations need permission from the justice department before they can change election rules. so today, the two sides took the issue to federal court. roland martin is here, cnn contributor and alice stewart, republican analyst. great to see you both. roland, explain the basics. people with a driver's license have a picture, they may be saying, i don't understand this. how could 1.4 million people not have a photo id?

tell me who these people are. >> well, a lot of people don't have it because you're not necessarily required. you're talking about senior citizens. you're also talking about any number of minorities because if you're not having a checking account, you're not showing it. i'm a native of texas. i'm in houston right now. they also don't allow a student i.d., erin. now, the georgia law allowed for the public university students to use their student i.d., but not private schools. but in texas, you can use your gun permit i.d. to be able to vote, but not a student i.d. that's what's so crazy. but also the legislature in passing this bill bypassed the normal procedure of two-thirds voting to approve the bill. they bypassed that to get this in. and so it raises the question, why would you do that -- why would you go against your normal procedure to pass this bill compared to others? >> alice, let me ask you a

question. because obviously i don't need to be a genius to recognize what roland was saying. gun permit pictures are okay, and student i.d.s aren't, that will skew republican. >> first of all, the whole purpose for this is to prevent voter fraud and to combat a culture of election fraud and to bring about free and fair and lawful elections. and the good thing about the law in texas, these voter ids are free of charge and also when you go to the polls, there's a provision where you can go -- if you go to the polls that day and you don't have your id, you can cast a provisional ballot and you have, depending on what state, you have six to ten days to present your i.d. so no one's turned away from voting. you can vote, you just have to get your proper i.d. voting is a privilege in this country. and there are certain requirements that we all have, all three of us here, we have certain requirement that is we need in order to cast a ballot. >> what she just said is shameful, erin. when you say voting is a privilege, these are the same people when we talk about our

troops overseas fighting for the american way, democracy, our power and our vote, all of a sudden now it's a privilege? no. any republican, any democrat, any independent should be saying, voting is a fundamental right in this country. erin, what also is troubling about this, the american legislative exchange group, the shad yo we group out of d.c., there are lots of corporate funders, change.org began to expose them. they begin to lead these efforts. the reality is, it's a partisan issue. we've seen these laws all of a sudden crop up since 2010, many statehouses flip to the gop. what's also interesting in terms of what they're pushing and talking about it's a privilege is when you deny 1 million people and then you're saying the corruption of voter fraud, the national republican lawyers only found 340 cases of voter fraud over a ten-year period in all of america. so you're saying -- >> give alice a chance to respond to that.

>> -- there's not a million people? what percentage? >> he has a fair point here, alice. >> just to make sure we get all the facts out there, texas itself has already tried 50 cases and currently in texas alone, there are almost 250 cases pending that are to be investigated that involve dead people casting ballots. and keep in mind, we're not talking about huge presidential elections that are decided by tens of thousands of votes. many of these races come down to just a handful of votes. we're talking about state house races that are critical. if you're a candidate on either side of the aisle, you want to make sure these elections are fair and lawful. >> i remember a time when i was 17 years old and a guy that i'd known my whole life, he was almost 60, he was african-american, he'd never voted and he was intimidated and intimidated about reading the ballot. so we spent all summer working on him getting to vote. he actually voted that time, he voted for president clinton. and i always remember that when i hear these stories. people are afraid and it

shouldn't be that way. and don't you think that some of these laws make people more afraid? >> no, i think -- that's great that he was able to cast his ballot. that's fantastic. but it's very important -- no one's turned away. anyone can go get a free id and go to the polls and vote. you just have to get your i.d. this is to help make elections for everyone, make sure every vote is fair and it's lawful. >> erin, what she's not -- >> follow all the laws that are on the books in every state. >> quick final word, erin 37. >> what she's not staying is many counties -- there are a number counties in texas that don't have a department of public safety office to get your i.d. where do they get it? the other deal is, people who are illegal immigrants can get a driver's license in texas. how can you pass that law but then say you can have a driver's license to vote but you pass that law, then you say voter fraud -- well, that makes no sense. >> we'll leave it on that note. thanks to both of you,

appreciate it. let us know what you think on twitter. there's a number of reasons "fifty shades of grey" has become an economic powerhouse. and mitt romney doesn't have anything to do with "fifty shades of grey," mitt romney is under fire for his offshore bank accounts. why does he have them? we'll be back. ♪ you want to save money on car insurance? no problem. you want to save money on rv insurance? no problem.

you want to save money on motorcycle insurance? no problem. you want to find a place to park all these things? fuggedaboud it. this is new york. hey little guy, wake up! aw, come off it mate! geico. saving people money on more than just car insurance. of single mile credit cards. battle speech right? may i? [ horse neighs ] for too long, people have settled for single miles. with the capital one venture card, you'll earn double miles on every purchase, every day! [ visigoths cheer ] hawaii, here we come. [ alec ] so sign up today for a venture card at capitalone.com. and start earning double. [ all ] double miles! [ brays ] what's in your wallet? can you play games on that? not on the runway. no. ♪ why do you whisper, green grass? ♪ [ all ] shh! ♪ why tell the trees what ain't so? ♪

[ male announcer ] dow solutions use vibration reduction technology to help reduce track noise so trains move quieter through urban areas all over the world. together, the elements of science and the human element can solve anything. [ all ] shh! [ male announcer ] solutionism. the new optimism.

more than a year after its release, america is still hot

for "fifty shades of grey." i have not read the books. but i'm not as bad as "outfront's" chris maloney who thought this book was about senior citizens' love lives until this morning. yes, until this morning. now, we both know the trilogy, which is set in the pacific northwest, is about the relationship between a barely college grad and the too young to be a billionaire christian grey, unless he's mark zuckerberg. here's the bottom line, this trilogy is expected to sell its 20 millionth copy this week. the top three books on "the new york times" best-seller list are these three. one out of every three novels sold have been one with those three books. we know that no matter where you've been, you've seen people reading this book. some reports say the author is raking in $200,000 a day. but she's not the only one making money off of this series. which brings us to tonight's number, which is 2,700. that's the price of the charlie tango no limits package.

i guess you have to know the book. offered by the heathman hotel in portland. for that price, the hotel made famous in the book will re-create the main character's birthday party, including dinner for six, roses for women and a helicopter ride of the city of portland 37 if that's too pricey for you, there are less expensive options. three hotels in san francisco offer a shades of women package. for just $369 you get deluxe accommodations and this special package. now maloney knows what the books are about. george zimmerman is living in a safe house. who's paying for it and does it add up? we called the local authorities. [ manager 1 ] out here in the winds,

i have to know the weather patterns. i upgraded to the new sprint direct connect. so i can get three times the coverage. [ chirp ] [ manager 2 ] it's like working in a giant sandbox with all these huge toys. and with the fastest push-to-talk... i can keep track of them all. [ chirp ] [ chirp ] [ male announcer ] upgrade to the new "done." with access to the fastest push-to-talk and three times the coverage. now when you buy one kyocera duracore rugged phone, for $49.99, you'll get four free. visit a sprint store, or call 855-878-4biz. [ chirp ]

visit a sprint store, or call 855-878-4biz. those surprising little still make you take notice. there are a million reasons why. but your erectile dysfunction that could be a question of blood flow. cialis for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial.

welcome back to the second half of "outfront." we start with stories we care about where we focus on our reporting from the front lines. reaction pouring in to president obama's call for congress to extend the bush tax cuts for the middle class. but end them for families making more than $250,000 a year. the romney campaign says the proposal amounts to a massive tax increase. senator chris coons, a member of the senate budget committee, said earlier on "outfront," it's not a solution but it's a start. >> most folks would agree that 98% of americans represents a broad range, more than the middle class, up into the upper middle class.

so the number that i think the president chose today was designed to strike a balance. >> senator coons said he's for people overall paying lower rates if loopholes were closed. a top bank of england official testified involving the rate scandal that cost the top executives at barclays their jobs. it was british style. the deputy governor denied suggestions that government officials pressured him to encourage banks to manipulate the rate that american mortgages are pegged to. it's a rate called libor. when asked if libor manipulation is stopped, he said, quote, i can't be confident about anything after learning about this cesspit. that's what i love about the british, you have to go on c-span and watch it, it's great. barclays have paid $450,000 to settle charges that its traders manipulated libor. they manipulated it to be lower than it was. palestinian authority president mahmoud abass has given the approval to have former leader's body yasser arafat exhumed.

high levels of polonium 210 were found on some of arafat's belongings. including his toothbrush. a former cia agent told us investigators will still be able to find polonium in arafat's body if he was poisoned. he died in 2004 after dieing from what was diagnosed as a brain hemorrhage. we have more information on amy copeland, the 24-year-old georgia woman recovering from the effects of flesh eating bacteria. in a message to "outfront," aimee's father said she is now feeding herself. aimee left the hospital a week ago and is now in rehab. she lost her hands, leg and her other foot in her fight. she is on her road to recovery. it's been 340 days since the u.s. lost its top credit rating. what are we doing to get it back? borrowing more. consumer credit rose by $17 billion in may. more than economists thought. resolving credit includes your credit card, rose by $8 billion, the most since november 2007.

our third story "outfront," democrats hammering mitt romney for holding offshore bank accounts. >> he's the first and only candidate for president of the united states with a swiss bank account. >> this is a guy whose slogan is business in america. it should be, business in bermuda. >> why does an american businessman need a swiss bank account and secretive investments like that? >> why does an american need a swiss bank account? we asked a professor of tax at new york university. he said the reasons could range from tax fraud to simply having easy access to money abroad but that in mitt romney's cases the benefits are more likely. nobody's alleging anything illegal as well here. but secrecy and confidentiality are the main reason, avoiding tax deduction limits and the professor also said avoiding tax on investment income. in this case, this could be money that his i.r.a. has

invested in bonds. he has a $100 million i.r.a. so this could mean significant savings. william cohan, doug holtzekan and john avlon join me. is it safe to say this is why mitt romney has offshore bank accounts, right? to save money? >> i presume it's to make money. i'd be quite surprised -- >> that's an interesting way to put my words back at me. well done. >> this is real simple, i think. for the average person whose only account is in a bank down the street, this seems quite mysterious. and it's very easy to demagogue, we've seen that as the white house and others have tried to change the channel. all that could be going on here is that mr. romney's investment investor who makes his

investments for him has chosen to invest in some overseas entities. if could be as simple as buying a share of british stock. and when the dividends got paid, he paid taxes on it like everybody else. or he could invest in something in the bahamas or the caymans, those entities are organized to attract investors from many countries. >> right. >> europeans -- >> but they give you benefits -- talking about that debt tax benefit. if that were the case and we don't know if it is. but a $100 million i.r.a. could be saving a huge amount of tax dollars? >> that's right. >> an i.r.a. in the united states isn't taxable for anyone in the united states until it's taken out. mitt romney or anyone. those are entities that are typically in the caymans or the bahamas because the europeans don't want to put it into the united states. we are an economy where the president threatens to raise tax every two days. they want it on a third-party neutral site.

if you want to make some money and do something, you have to invest there. >> william, what do you make of doug's arguing here? he made a good case. >> well, he's articulate. i'll give him that. but you have to point out here first of all that this wasn't just mitt romney's financial adviser making this decision.

recently or even in the last four years. these were funds that mitt romney were invested in when he was at bain for 15 years and that were domiciled like many hedge funds or private equity funds in offshore areas in order to frankly avoid paying taxes, if they can. the point of the matter is that if you're an honest person, which let's presume mitt romney is, the federal government will find him and make him pay his taxes no matter where he makes

that money on a worldwide basis. but if he were disinclined to report that himself because none of these entities file irs forms, if you were disinclined

to do this himself, then he could easily evade taxes. that's what goes on here repeatedly. and no one's saying that mitt romney is doing that. but the point of the matter is he could do it if he wanted to. >> would you acknowledge, though, that with the tax code being some 60,000-plus pages or something like that, it's that long because people have put loopholes in there. and if you have the time, you should be using those loopholes. if he's doing that, what's he doing wrong? >> erin, he's more than likely playing by the rules. this is not exactly a transparent situation here. let's give him the credit, yes, he is playing by the rules. but to douglas' question or your question about the i.r.a. that he has, he has $102 million in that i.r.a., i don't know he did that putting in $15,000 to $17,000 a year. i would like to know what kind of investments he had making that kind of return. >> that is a great question. >> i think everyone in america would want to know. the bottom line is, why is he doing it? he's been running for president for eight years. >> he's running for office. >> this doesn't play well. why not just close them down? >> he did close down some accounts but obviously because he gets a tax advantage. let's be real about it. >> sometimes when the answer is obvious, the answer is obvious. >> that's exactly right. let's assume the answer is often yous. why this resonates political nr n ding msf tes political bhine ds. %ts s mengweea l av ihee.3 %e's n3 ppa licapre% pria i eou3 watchman has been out on bond sincefray he's charged with with second degree murder in the shooting death of trayvon martin. why does zimmerman need this enhanced security and who's paying for it? paul callan is "outfront." paul, safe house, what does this mean? >> good question. the first time i've ever heard the use of this word in a criminal case was the casey anthony case after she was released. you don't normally hear it in

criminal cases. a safe house is where a spy goes. they have encrypted communications. this makes it sound like george zimmerman thinks he's jason bourne and he needs a safe house. i find it to be an odd selection of terminology to describe security. >> so why would he need to hire personal security? the question is, too, does this terminology have anything to do with who's actually paying for it? >> i think it does. i think that by using a term like safe house, it elevates george zimmerman to the point where he maybe can claim to be representing some national idea or a cause. i don't know what it is, self-defense, if he acted in self-defense, he acted in

self-defense. that will be up to a jury someday. but certainly for fund-raising purposes, there's a certain glamour to have your own private security team guarding you in your safe house which is what his website now says. in most criminal cases, and i've been involved in a lot of them, if there's a legitimate, credible threat made against somebody, including a defendant, the local police provide security. you don't need a safe house and you don't need a private security force 37 >> we called the sheriff's department and asked to try to find out what was happening here. they said george zimmerman never had a personal request for protection. who made the decision? >> well, obviously a decision has been made either by zimmerman or by his defense team that they need security. what i'm betting is what he really needs protection against is the paparazzi. his house would be surrounded by photographers and they would be taking his picture and asking him unpleasant questions as he leaves every day. i think that's a greater threat to george zimmerman probably than some hitman who's going to kill him. i mean, frankly, trayvon martin's family has said that they'll rely on the court system.

and the local demonstrations have really died down in seminole county relating to this case. there are always crackpots saying things on the interpret. but a credible threat that would require a private security force, i have my doubts that it's necessary. >> thanks very much to you, paul callan. the mysterious illness that's killed 64 children in cambodia. we're going to go there live to see if anybody knows what's happening, and why these children are dying. and then, a shark creeps up on a kayaker in cape cod. his first-ever time on a kayak. our operations e are safe and clean for our communities and the environment. we're america's natural gas. how do you know it's summer time? well, i'm flipping burgers and talking about theford summe. "oh, wow." "now this would definitely be the car i would want to get."

like the fusion? "we love the fusion." mileage matters? "absolutely." up to 33 miles per gallon. the sync system. you can take all the music and put it into the hard-drive. he just got a glimpse of some 21st century technology and he's flipping out. don't miss the ford summer sales event. get a fusion with 0% financing for 60 months plus $1750 cash back. now at your local ford dealer. serving up fords...with everything on them. would you mind if to be i go ahead of you?omer. instead we had someone go ahead of him and win fifty thousand dollars. congratulations you are our one millionth customer. people don't like to miss out on money that should have been theirs. that's why at ally we have the raise your rate 2-year cd. you can get a one-time rate increase

if our two-year rate goes up. if your bank makes you miss out, you need an ally. ally bank. no nonsense. just people sense. [ music plays, record skips ] hi, i'm new ensure clear. clear, huh? my nutritional standards are high. i'm not juice or fancy water, i'm different. i've got nine grams of protein. twist my lid. that's three times more than me! twenty-one vitamins and minerals and zero fat! hmmm. you'll bring a lot to the party. [ all ] yay! [ female announcer ] new ensure clear. nine grams protein. zero fat. twenty-one vitamins and minerals. in blueberry/pomegranate and peach. refreshing nutrition in charge! in blueberry/pomegranate and peach. it doesn't look risky. i mean, phil, does this look risky to you? nancy? fred?

no. well it is. in a high-risk area, there's a 1-in-4 chance homes like us will flood. i'm glad i got flood insurance. fred, you should look into it. i'm a risk-taker. [ female announcer ] only flood insurance covers floods. visit floodsmart.gov/risk to learn your risk. try capzasin-hp. it penetrates deep to block pain signals for hours of relief. capzasin-hp. take the pain out of arthritis.

we're back with tonight's outer circle where we reach out to our sources around the world. we begin tonight in cambodia where a mysterious illness has killed 64 children since april. doctors say they may have the first key to solving what is behind the deaths. it's called enterovirus 71. a common childhood disease which was discovered in a number of the children who died. chief medical correspondent sanjay gupta is live in phnom penh. what have we learned about this virus and whether it's contagious? >> reporter: well, we've learned that 15 of these 66 children that you just mentioned tested positive for this enterovirus 71. so it's an important clue, as you mentioned. but as you can tell from the numbers alone, erin, it doesn't explain everything. more testing is still under way. it's also -- it can be a pretty common virus.

so the fact that this could be so lethal here in cambodia is a little bit of a puzzle as well. of those 66 children, 64 have died.

this is nearly 100% lethal. what's also interesting, to your second question about how contagious, it doesn't appear to be very contagious. enterovirus typically is contagious. so that's a little bit of a mystery as well. typically if a child has in it a household, a sibling or another young child may get it or it may cluster in communities. that doesn't seem to be happening here. that's good news but leaves a lot of unanswered questions. >> i know you spent a lot of time in the hospitals today seeing these children and their mothers. i'm curious what you were able to figure out or what you think might be the reason why the fatality rate is so high for a disease that you say is really rather common? how do you make those two things together work? >> reporter: well, there's a lot of people trying to answer that question. but i can tell you a couple of things that seemingly are coming to the surface here. one is that this enterovirus 71 could, in fact, be one infection and there could be another infection that's at play as well. we don't know. they're trying to test for this. or it could be that the enterovirus caused a sort of mild infection and the children were treated with some sort of medication that made it worse.

this would be an interaction literally between medication and virus in this case. that's the leading sort of theory by one of the doctors that's treated all 66 of these patients. so -- but we can't say that for sure as of now. this enterovirus is an important clue. but it's a mysterious thing and they want to solve it to prevent it from continuing to occur. >> sanjay gupta, thank you so much. you went all the way to cambodia to see these children and figure out what was with happening. reporting live from phnom penh tonight. now to afghanistan, where hamid karzai ordered the arrest of taliban members who shot a woman execution style because he was accused of adultery. mohammed jamjoom tells us why they did it. >> they said they did it to save face by accusing a woman of adultery, a crime punishable by death in afghanistan. now, the killing has sparked widespread condemnation and afghan president hamid karzai has vowed a manhunt has started and the perpetrators of this crime will be brought to justice. but it must be remembered that in afghanistan, violence toward women is not just committed by the taliban, and it's quite frequent. and in a report released just this year by human rights watch, it stated that nearly nine out of ten afghan women suffer physical, sexual or psychological violence or forced marriage at least once in their lifetime. erin?

>> thanks to mohammed. our fifth story out front, sharks in the water. not just any sharks, we're talking about a great white 12 to 14 feet long cruising o the coast cape cod. that's where walter was vacationing when -- it's almost like you can hear the "jaws music." it was a scene right out of "jaws." ♪ >> we're going to need a bigger boat. >> he was paddling for his life as the great white began following him off the coast of nauset beach. he made it safely, and he's out front tonight. i have to say, that picture is just -- i can hear the sinister and frightening music. can you just tell me when you noticed this shark was behind

you? >> yes, i noticed the shark when the man on the kayak -- i'm sorry, on the surf board pointed me out with his paddle. until that point, i had no idea. i was just concerned with landing the kayak without dumping it. >> thank god you didn't dump it. was this your first time out in a kayak? >> it was my first time out in the ocean on a kayak. i had been on a kayak when i was younger, but it was in a wlak. >> can you tell me what happened to your mind, your heart, your stomach, your body, when you turned around and saw the fin? >> i was a little freaked out. it was -- it was a quick moment. i had to react. i pretty much looked at it, look down, saw the body there. i didn't see the head. i think that was under the kayak. so at that point i just paddled. fortunately, i had plenty of

practice time so -- >> wow so we're looking at the picture now. we can see the fin and your kayak. you're saying that was probably 10, 15 feet away, so literally part of the shark was under you? >> that's what it seemed like when i looked back. i saw the body, i didn't see the head. it was a quick glance, and i realized i nied to move or the shark's going to do what it's going to do, which i suppose it could have anyways. >> i'm just wondering why it didn't. maybe it was just curious about you. i mean, i have no -- it's just such a miraculous thing. one of the things i know you talked about, was when your daughter was on cape cod, had said, hey, don't worry about sharks, no problem, don't worry about that. i guess you kind of have to have a little problem there now. >> actually, my daughter was a little concerned with the

sharks. my sister had texted us we should watch out for the great whites. we sort of made a little joke of it. i told her what was the chance, you know, of bumping into a shark, the amount of people in the water and the amount of sightings that there were. so we were kind of mocking the fact that we were going to see the shark, and i think i called it out. >> walter, have you seen the pictures of your shark from the air? >> no, i have not. >> you got to look at them because our viewers are looking at them and it's pretty frightening. little nervous about sharks. all right, well, thank you so much. thanks for telling your tale. that was certainly the picture of the day. >> thank you. can i just say hello to my kids, jacob and skyler, they're watching right now, and a little shout out to the people and friends and family in new hampshire. >> you got it. >> and thanks to hearts turkey

farm for letting me stay at their place. >> they all heard it, you said it, thanks so much, we appreciate it. and still "outfront" a nation celebrates a birthday, but there was not a whole lot to celebrate. we're going to look to the bright side. the e block is next. ere've been. and some difficult ones. but, through it all, we've persevered, supporting some of the biggest ideas in modern history. so why should our anniversary matter to you? because for 200 years, we've been helping ideas move from ambition to achievement. and the next great idea could be yours. ♪

♪ what started as a whisper

every day, millions of people choose to do the right thing. there's an insurance company that does that, too. liberty mutual insurance. responsibility. what's your policy?

the world's youngest officially recognized nation turned one today. the republican of south sudan in south africa, has a nation of eight million people who speak, pause here, 0 different languages. unfortunately in its first year

of existence things have been difficult for south sudan. a dispute with the other sudan led to a shutdown in oil production, and 98% of the country's oil. and many have moved into refugee camps. south sudan is not alone. there are refugee crisis tonight in the democratic republic of the congo too. while problems like these plague many african countries, i wanted to close tonight's show with another story about africa. i visited places in africa just bursting with entrepreneurs. one of them is nigeria. it's like little new york teaming with ambition and people. nigeria clenched its first

olympic berth in basketball. it's the perfect example of nigerian ingenuity. [ speaking foreign language ] i met him once. i was inspired by him. he was the man behind dmt. dignified mobile toilets. he had a great sense of humor about his business. his business card says blank business is serious business. and so it is. he told me that 45 million people in this country wake up every single day, and they have to go do their business. he was there to give them a better way to do their business. he made a great living doing it. he saw his country's problems and found a solution.

tonight, the hottest political question of the summer. who will be mitt romney's running mate? remember the top republican who told me this -- >> i'm running for president. i'm not putting my hat in the ring rhetorically for vice president. >> that was then. now is tim pawlenty rethinking that whole vice presidential thing? i'll ask him also what he thinks of this from president. >> the republican says they don't want to raise taxes on the middle class. i don't want to raise taxes on the middle class. we should all agree to extend the tax cuts for the middle class. >> plus, hollywood's most gripping blockbuster settle their divorce just 11 days after she filed. what may be going on behind the scenes. and what role, if any, did scientology play in that split? i'll talk to a woman who was a member of that church and the counselor who says he helped countless ex-scientologists. i'll ask hollywood heavyweight