Prince Charles' Car Attacked by Protesters; House Democrats Reject Obama Tax Cut Deal
BROOKE BALDWIN, CNN ANCHOR: Ali, thank you. A couple of developing stories this hour. CNN has just gotten some video in from London. Guys, let's put it up on the screen here. Take a look. On the left side of your screen, that is a bit of a beaten-up Rolls-Royce. It was carrying Prince Charles and Camilla. You can see it's a bit mangled. It was attacked by some of those student protesters. Those thousands of students apparently broke a window, threw some paint on the vehicle. You know the story. The British Parliament voted today to raise students' tuition by 300 percent. They have been out and about protesting. And this car apparently got hit in the fray. Also, we are watching the slow burn of this house, still burning at this hour. This is what they called the bomb house. This is in north San Diego County right around Escondido, California. Dozens of homes are evacuated right now so crews could dispose of the nation's largest-ever cache of homemade explosives. A gardener apparently discovered all of them just a couple of weeks ago, the homeowner right now sitting in jail. But I want to go back to this story out of London. We have Geoff Hill. He is a producer for us out of London, talking about these student protests that have been happening all day long. And, Geoff, I want to bring you in. I don't know how close you were to that car that was carrying Prince Charles and Camilla. But tell me what happened? And I guess the obvious follow-up was didn't they know protests were happening today? Why didn't they avoid the area?</s>GEOFF HILL, CNN PRODUCER: Yes, it's a very good question, Brooke. I actually missed the event itself. But it happened sort of further down Regent Street towards Leicester Square in the heart of London. I had actually left the bureau to go and collect a tape of one of our producers who had been following the protests all day. And I was waiting on the corner and then I noticed a very large police escort and a cordon. And I noticed what is quite clearly the royal car carrying Prince Charles and the duchess of Cornwall, Camilla, coming around the corner towards the Royal Variety Performance, which is happening very, very close to the bureau here in London. And then I noticed that there was paint on the back of the car and some damage to the window, a smashed window on Prince Charles' side. So I sort of left my post, ran after the car and I recorded some video of the car as the prince and Camilla were getting out of the car going in towards the Variety Performance around the corner -- Brooke.</s>BALDWIN: So this is video that you recorded for us, thinking quickly there on your feet there, Geoff Hill. And just to answer my second question, what were they doing in the area? And then what happened once this happened? Were they escorted out of the -- that area?</s>HILL: Yes. Well, I think that they only sort of had minor some damage on the car, so they carried on through and then reached their final destination.</s>BALDWIN: I see.</s>HILL: I think questions are going to have to be asked now to the police as to why the royal party was driven through an area where protesters were moving around. I think, in the police's defense, this happened quite quickly and quite fluidly. And the protests earlier in the day were around Westminster and the Houses of Parliament. And there are several breakaway groups and protesters who have made their way up towards the center of London through Leicester Square and through Regent Street. So it's a rather fluid situation for the police. But I think you're right. I think questions are going to have to be asked now as to why the party did come through an area where protesters were clearly active, Brooke.</s>BALDWIN: Geoff Hill, we appreciate you whipping out your camera and taking those pictures for us, Rolls-Royce, pretty nice car, a lot of damage. Geoff, thanks to you from London. Now I want to get you to Washington, some breaking news out of nation's capital, the big fat no to the White house from Democrats in the House of Representatives, no to the tax deal with the GOP, the deal to stop taxes from rising for all of us come the 1st of January. Here's what we're hearing right now. Vice President Joe Biden, he angered his own troops when he took a trip to Capitol Hill, told them to essentially take it or leave it. That's a quote we have heard. The tax deal is set in stone, he says, no negotiations on the cuts for the wealthy, the top 2 percent, as part of that deal. In fact, this morning, the Democrats met and said, guess what, they want changes.</s>REP. CHRIS VAN HOLLEN (D), MARYLAND: This message today is -- is very simple, that the -- in the form that it was negotiated, it is not acceptable to the House Democratic Caucus. It's as simple as that.</s>BALDWIN: Senior congressional correspondent Dana Bash joining me now live. And, Dana, let's just make this real simple. I'm going to ask you this one question. Then I'm going to defer to Congressman Jay Inslee of Washington State. The question is this. Are these Democrats serious? Are they willing to watch the American taxpayers' taxes go up come the 1st of the year if this deal -- if they don't get changes to this deal?</s>DANA BASH, CNN SENIOR CONGRESSIONAL CORRESPONDENT: Well, are they willing to watch taxes go up for everybody? That is the --</s>BALDWIN: For everyone.</s>BASH: Exactly. That is the big question. What they are trying to do, very clearly, and, in fact, a Democratic congresswoman just told me this moments ago, is try to give the president leverage to make some changes. But I got to tell you, what the House Democrats did today was absolutely stunning. There's no question it was an act of major defiance. What happened in this meeting, Brooke, is they -- it was a surprise vote. This was not planned on. It happened -- it was not planned that this was going to happen today. It was done by voice vote. It was a measure offered by Congressman Lloyd Doggett. And we are told that there was rousing approval for it, people even chanting, just say no. So, that sort of gives you a sense of where this caucus is. Now, I just want to mention two things, because we're talking about anger on two fronts: substance and process. Substance, of course Democrats across the board are not happy with the fact that tax cuts and tax cuts will continue for all income levels, even the wealthiest Americans. But what Democrats are most angry about, Brooke, is the fact that they added this estate tax provision in, which effectively exempts everybody making up to $5 million. And then, when the tax kicks in, it's at 35 percent. They say it's just too much of a giveaway to the wealthy. And then, on the process, boy, that's where we're really hearing it from Democrats. They're really upset with the White House and the way they handled this, negotiating this with Republicans, leaving Democrats in the dark. One Democratic leadership source told me that it is breathtaking the way the White House mishandled this, from their point of view.</s>BALDWIN: Yes.</s>BASH: So that is another message that the Democrats are trying to send here.</s>BALDWIN: It sounds like this whole take it or leave it line from the vice president not at all sitting well specifically with the House Dems. Dana Bash, thanks. Thank you. And I know standing very closely to you, we have Congressman Inslee. We're going to mike him up right now. So, as we do that, I want to bring in national correspondent Jessica Yellin. And, Jessica, you have been talking to some of your White House sources. What do they have to say about these defiant House Democrats?</s>JESSICA YELLIN, CNN NATIONAL POLITICAL CORRESPONDENT: Well, first, I would point you to what Robert Gibbs said publicly, which is that the tax plan will ultimately pass. And his argument, the White House argument, is that Democrats will have to get on board for the reason you pointed out, because they would face blame for letting taxes go up in the new year if they don't. Now, you should keep in mind also they don't really need that many or all the Democrats, because they will get enough Republicans on it, too. But, Brooke, you know, privately, Democratic administration officials tell me that they're basically mystified with these critics in Congress, who they think are being profoundly unrealistic about what can get done.</s>BALDWIN: Huh.</s>YELLIN: You almost get the sense that they wish they could say to folks, grow up.</s>BALDWIN: Well, Jessica, let me bring in Congressman Jay Inslee.</s>BALDWIN: And I want you to stand by here. You're very -- oh, he's not there yet. Well, Jessica, before I bring him in, then, are you surprised at all perhaps by -- with regard to the House Dems? Some of this defiance, and I guess is it more, perhaps, political posturing or do they truly want concrete changes to get this thing passed?</s>YELLIN: Well, what -- they definitely want concrete changes. And, you know, but the big question a lot of folks are asking right now, a lot of other Democrats, is, are we seeing what's to come in the new Congress? Will Nancy Pelosi, as the new minority leader, sort of take on the position of the no, party of no, where they're going to resist not just Republican efforts, but White House efforts to make compromises in the new Congress?</s>BALDWIN: We have Congressman Jay Inslee. So, Jessica, stand by. You're very plugged in. I want you to participate in this interview. There he is, Democrat of Washington State. Good of you to pop that microphone on and talk to me about this whole conversation.</s>BALDWIN: And, specifically, Congressman, we're scratching our heads a bit over these numbers. And I'm hoping you can help me out here, because they're kind of all over the place. The latest we are getting is this two-year cost of this new tax cut, it's somewhere in the ballpark between $800 billion and $900 billion. That is just specifically the tax cut. And then the top 2 percent would take up about 20 percent of that, that $800 billion to $900 billion pie. So, Congressman, how close is that to what you're hearing? How close is that to reality?</s>REP. JAY INSLEE (D), WASHINGTON: I think the upper-income portion of that pie is actually higher than that 20 percent, a bit higher.</s>BALDWIN: Huh.</s>INSLEE: And, as a result of that, you know, we basically know this. We know that America deserves a better deal. We know we would prefer the Clinton era economy to the Bush era millionaire tax cuts. And we know this is not coming to the floor as it is presently constituted. And we look forward to working with the president and the Republicans to move forward on the bipartisan consensus. We do have -- we do have a bipartisan consensus to move the middle class tax extension forward, but we are not -- what the House said today, House Democratic Caucus, very loudly and almost unanimously -- I think there was one vote against this motion -- we said that this should not come to the floor of the House of Representatives. So, it was a very strong and very unifying statement.</s>BALDWIN: You say it's not -- not going to the floor. I read your -- part of your letter. You said because this is not a compromise. You say this was a mistake. Congressman Inslee, I want you to -- I want to play you a sound bite. This is President Obama 48 hours ago. Here he is.</s>BARACK OBAMA, PRESIDENT OF THE UNITED STATES: On the Republican side, this is their Holy Grail, these tax cuts for the wealthy. This is -- seems to be their central economic doctrine. And so unless we had 60 votes in the Senate at any given time, it would be very hard for us to move this forward.</s>BALDWIN: So, Congressman, the president essentially saying to you and your fellow Democrats, you don't get it. This is reality. This is the best deal he could get. What do you say to the president?</s>INSLEE: I think it is hard. I think that is their central Holy Grail. But, you know, I liken this we're a team. We're a team with the president right now. He's our quarterback. I used to play a little quarterback in the day. And when my right tackle and my left guard came to me and said, hey, we can block these guys, we can make progress, I had -- I listened to them. And I think the president, I hope, will listen to this message today, which is, we believe, with the combination of the will of the American people, which, by the way, is totally with us on this by 2-1 margins -- American people believe that our Democratic principle of middle-class tax cuts and not the Bush era high-income is the correct policy by 2-1 margins.</s>BALDWIN: We have seen the polls.</s>INSLEE: Now, that in combination with the veto --</s>BALDWIN: Sure. We have seen the polls.</s>INSLEE: That in combination with --</s>BALDWIN: I know.</s>INSLEE: And the president has a veto authority. And if he says he's going to use it, this dynamic will change.</s>BALDWIN: Right. Well, I want to bring in Jessica Yellin. She is very plugged in. She's seen the polls as well. Jessica, jump in. Ask the congressman a question.</s>YELLIN: Thanks. Congressman, I'm curious. As Dana has been reporting, you guys really thumbed your nose at the president today. But, still, his spokesperson, Robert Gibbs, is saying in the end this will pass. House Democrats will ultimately let this get to the floor and vote for it. Do you have the votes to block it?</s>INSLEE: Of course we do. This can't come to the floor without the Democratic Caucus voting for a rule to allow it to happen. Mr. Gibbs, who I like and respect, was not in the room today. Let me understand. This is one of the few times I have ever seen the Democratic Caucus almost totally unified in full-throat commitment to the American people to improve this deal before it passes. And we want to work with the president to do that. We are a team. As part of a team, we listen to each other. This was a message to the president that we believe the combination of the American people, his skills, and the veto can, in fact, move this process forward and get a better deal for the American people.</s>BALDWIN: I have got to -- I have got to --</s>INSLEE: And you had to be there to listen to us</s>BALDWIN: I have got to jump in and I have got to follow up with this and then I'm going to let you go, Congressman Inslee. But we heard from Larry Summers, the top economic adviser out of the White House, and perhaps this doesn't sound very team-like, because he essentially said, look, if this deal as is does not get passed, there could very likely be a double-dip recession. Just curious how that sat with you. Did you see that as a threat?</s>INSLEE: Well, listen, we're all concerned about this. We are in a fragile period of time. But adding $800 billion of deficit spending and not one new clean energy job is not a formula for improving our short- or long-term economy. And I have got to tell you, I had memories of the Bush administration talking about the mushroom cloud from Condoleezza Rice when we heard this kind of statement. You know, we are very concerned. The economy is fragile. But loading this deficit of $800 billion, you know, that has a -- a restrictive impact on the amount of investments people make, too. So there's arguments both ways. We intend to have a both short-term and long-term provision. And that's a better deal for Americans, which we can have if we do a little hard work together here.</s>BALDWIN: Well, We are staying plugged in with you, sir, and your party and the other party and the president. We are going to see if this thing gets through and how. Congressman Inslee, thank you. And, Jessica Yellin, of course thanks to you as well.</s>INSLEE: Democracy in action.</s>BALDWIN: Thank you.</s>INSLEE: Thank you.</s>BALDWIN: And now this. Look at this, chaos today for hours and hours in London, thousands of students taking to the streets, basically speaking out over these tuition hikes. But they didn't win. That's the news today. What are they going to do tonight? That's ahead. And investigators say they found the largest collection of homemade explosives ever in the U.S. inside a home in California. Now they are burning it down. There are the flames. There's a lot of smoke really. We are going to get a live report from the ground there in California next.