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When Democrats swept into power in Congress and the White House last year – a big part of their message was running against the record of the Bush administration.

And some are hoping that strategy works for them again in the 2010 midterm elections.

The web site Talking Points Memo reports Democrats plan to tell voters that Republicans only want to turn back the clock to the Bush era. They say the Republican Party in Washington today is no different than the one that ran Congress before.

Also Democrats insist the party won't take the same kind of beating at the hands of Republicans that it did back in 1994. House Speaker Nancy Pelosi says they "fully intend to be in the majority" after November – and other party leaders say they're more prepared this time.

They better hope they are, considering poll numbers that show support for the Democratic Party slumping. A new Wall Street Journal/NBC News Poll shows only 35-percent of voters have positive feelings for the Democratic party – that's down 14-points since February.

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Here we go again... Five Transportation Security Administration employees are now on "administrative leave" after a sensitive airport security manual was posted on the Internet.

Here's some of what was revealed:

• Who is exempt from certain additional screening measures

• Examples of identification documents that screeners accept

• And details of the screening process and the limitations of x-ray machines.

This comes weeks after three Secret Service officers were put on leave while that agency investigates how it allowed those two morons to crash a White House State Dinner.

Government employees who are found compromising national security are placed on "administrative leave." Gee... give me some of that. They sit home and do nothing while they continue to collect their paychecks. That's some "punishment." We have 10-percent unemployment in this country – yet try firing a government employee for anything short of a felony conviction. Can't be done.

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Majority Leader Harry Reid is the top cheerleader for health care reform in the Senate... and this support for the bill might just wind up costing him his Nevada Senate seat.

That's because a growing number of Nevadans don't support health care reform...

A Las Vegas Review-Journal poll shows 53 percent of registered voters oppose the president's health care plan while only 39 percent approve of it.

Majorities of Nevadans are also opposed to a public option, believe that the reform plan would raise taxes, and that it would lead to the rationing of health care. Worse yet – ahead of his re-election bid next year, only 39 percent approve of Reid's efforts to get a bill though the Senate.

Evidence suggests that although most Democrats support Reid's efforts... that probably won't be enough to outweigh the disapproval of most independents and Republicans. One pollster says Reid is carrying the flag for this reform and "You remember what happened historically to flag bearers in war. The flag bearer gets shot first."

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Bipartisanship in Washington is virtually non-existent these days – except for President Obama's new strategy for Afghanistan.

A new CNN/Opinion Research Corporation Poll – conducted after the president's speech this week – shows his plan wins approval from 63 percent of Democrats, a whopping 72 percent of Republicans and 55 percent of Independents. Gee, with a consensus like that you could actually run the country.

The president is getting thumbs-up from people more inclined to extend their middle fingers when it comes to things Democratic. Karl Rove says that the president's speech "deserves to be cheered" and insists victory is attainable.

Newt Gingrich is out praising President Obama for showing political courage on Afghanistan... in going against the anti-war left in his own party.

This is not to say that there aren't critics of the president's Afghanistan strategy in both parties, but on the whole, he's getting support – at least for now. If it doesn't go as planned, all bets are off. But at least for a few minutes we have the leadership of the country agreeing on something.

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Abortion is the political hot potato that could derail health care reform entirely.

It caused major disagreements in the House – and the Senate is now wrestling with how to address the issue. Democrat Ben Nelson says he will introduce an anti-abortion amendment... and that he won't vote for the health care bill unless this language gets added.

Nelson and others aren't satisfied with Majority Leader Harry Reid's current plan – that is to forbid including abortion coverage as a required medical benefit – but to allow a new government insurance plan to cover abortions and let private insurers that get federal money offer plans that include coverage for abortion.

In the House – a group of anti-abortion Democrats added restrictions that would forbid any health plan that gets federal money from paying for abortions – except in the case of rape, incest or to save the mother's life. Also under the House bill, a new government insurance plan couldn't offer abortions – and women would have to buy separate coverage for abortion services.

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When it comes to Afghanistan, President Obama better be right. After months of meetings and criticism that he was "dithering" and "weak" on Afghanistan – he finally made what may be the most important decision of his presidency.

But the announcement to deploy 30,000 additional troops is cloaked in contradiction. We're going to rush more troops in so we can begin to rush them out in 18 months. The Taliban and al Qaeda will probably make a note of this timetable.

You don't suppose the decision to withdraw in July of 2011 would have anything to do with the President's 2012 re-election campaign do you?

There was no mention of how we're going to pay for this. The 30,000 additional troops will cost an additional $30 billion in the first year.

Where's that money going to come from? Some Democrats are calling for a so-called "war surtax." But With a fragile U.S. economy, an unemployment rate topping 10-percent, and a costly health care reform plan on the table – there may not be much appetite for that.

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It's an idea that's long past due and it will probably never happen...

A group of Republican senators is proposing a Constitutional amendment to set congressional term limits – 12 years for the Senate and six years for the House.

Senator Jim DeMint of South Carolina says real change will never happen in Washington until there's an end to the era of permanent politicians. DeMint says lawmakers have been re-elected about 90 percent of the time over the last 20 years – because the system favors incumbents.

We all know the drill: Some spend decades in Washington, get into bed with the special interest groups that feed their campaign coffers and forget all about the people they're supposed to represent.

And we've heard this before... Republicans who gained control of the House in 1994 promised to pass congressional term limits, but once they were in power, they failed to deliver. The Supreme Court later ruled term limits were unconstitutional – which is why this group of senators is trying to change the Constitution.

In order to pass, two-thirds of the House and Senate would have to approve the amendment – along with three-fourths of the 50 states.

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Call it CBS News versus the White House.

CBS reports that President Obama intends to give General Stanley McChrystal most – if not all – of the 40,000 troops he's asking for in Afghanistan. They say the president has tentatively decided to send four combat brigades plus thousands of more support troops.

According to CBS, the troop buildup would last for about four years – until the Afghan military doubles in size. This surge would mean the number of U.S. troops would grow from the current 68,000 to about 100,000 by the end of the president's first term.

But the White House insists the CBS story is false. They call reports that the president has made a decision about Afghanistan "absolutely false." They say Mr. Obama still hasn't received or reviewed "final options" with his national security team.

So – who's telling the truth here? It comes down to the word of the Obama White House against the network of Edward R. Murrow and Walter Cronkite.

Of course... CBS News also saw Dan Rather step down in 2005 after apologizing for a report that questioned President George W. Bush's National Guard service. Rather said the report was based on false documents.

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It's been one year since President Obama defeated John McCain and rode into office promising "change we can believe in."

So – what has he done in the first year?

Some say Mr. Obama's biggest accomplishments have been keeping the financial crisis from becoming worse... and improving America's image abroad.

Democrats credit the $787 billion economic stimulus package with rescuing the economy... although Republicans call it a big waste... and with nearly 10 percent unemployment, the country is still waiting for the jobs to come back.

The president and Congress have spent most of the first year wrestling with health care reform and if we get anything at all – it's probably going to fall far short of meaningful reform.

Meanwhile President Obama has done nothing to regulate Wall Street or close the nation's borders. The deficits are beyond absurd. The wars continue – as does most of the government secrecy left over from the Bush administration.

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With Nancy Pelosi and the House Democrats unveiling their 1,990 page health care reform bill – it made us wonder about other landmark pieces of legislation in U.S. history and how long they were.

• The original draft of the 1935 Economic Security Act, which established the Social Security Administration was 64 pages

• The Civil Rights Act of 1964 – forbidding discrimination based on race and sex: 8 pages

• The 19th amendment to the Constitution, giving Women the right to vote in 1920: 1 page

• The Emancipation Proclamation, with which Abraham Lincoln freed the slaves in 1863: 5 pages

• Or, if you really want to get back to basics: The Declaration of independence came in at 1 page in 1776

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As Sarah Palin prepares to release her memoir next month, it seems like so much of her life is already an open book. Palin - who quit as Governor of Alaska in the middle of her first term - has been having a nasty public battle with the father of her grandson.

Levi Johnston - the former boyfriend of Palin's daughter, Bristol - says Sarah Palin describes her son Trig, who has Down syndrome, as "retarded." Johnston also claims to know a lot more about what went on in the Palin household - so presumably, there is more tabloid trash to come.

Sarah Palin is pushing back - calling Johnston's claim "inflammatory," and saying Trig is their "blessed little angel" who knows it and is lovingly called that every day of his life.

Palin also suggests that Johnston - who is preparing for a photo shoot with Playgirl Magazine - is desperate for publicity. Sort of like Sarah Palin is.

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Some Democrats are calling it the "Obama hangover."

Even with President Obama on the campaign trail, at fund-raising events and taping TV ads for many state and local candidates – it seems like the electricity of the 2008 campaign is a distant memory.

The Los Angeles Times reports how much tougher it is to get people fired up to volunteer and vote Democrat this time around. And, as President Obama tries to address health care, the economy and the wars in Afghanistan and Iraq – some of his decisions may not sit well with voters at the local level.

A lot of eyes are on the races for governor in New Jersey and Virginia; and a congressional race in upstate New York's 23rd district.

With election day a week away – things aren't looking so hot for Democrat Creigh Deeds in Virginia... One new poll shows him trailing Republican Bob McConnell by 11 points. Meanwhile – White House officials have been complaining about the quality of Deeds' campaign... gee, think they're trying to distance themselves from him?

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A majority of gun owners think President Obama wants to ban gun sales.

A new Gallup poll shows 55 percent of those who own a gun, 53 percent who have a gun in the household, and 41 percent of all Americans believe he will attempt to ban the sale of guns while he is president.

This concern is greater among Republicans and people living in the South and Midwest than among Democrats or those living on either coast.

It also helps explain the sharp increases in sales of guns and ammunition. There are reports that U.S. bullet-makers are working around the clock and still can't keep up with the demand for ammunition. Shooting ranges and gun dealers say they've never seen such shortages.

However, President Obama has never said - as a candidate or as president - that he intends to push for a ban of gun sales. The president has said that he believes in the Second Amendment and that "lawful gun owners have nothing to fear." In May, he signed a law allowing people to carry loaded guns in national parks.

Nonetheless, gun rights advocates point to Mr. Obama's record as a state legislator and U.S. senator where he "voted for the most stringent forms of gun control."

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When it comes to Afghanistan, the Obama White House keeps pointing fingers at President Bush. Although the war is in its ninth year - they make it sound like things are back to square one.

Chief of Staff Rahm Emmanuel says President Obama is asking the questions that have never been asked on the civilian side, the political side, the military side and the strategic side - a not-so-thinly-veiled reference to Obama's predecessor.

As President Obama continues to delay his decision whether to send as many as 40,000 more troops into battle - the latest excuse is the runoff election in Afghanistan - the tide is turning against the war here at home.

A new CNN-Opinion Research Corporation Poll shows 59 percent of Americans are opposed to sending more troops into Afghanistan...only 39 percent support sending troops – and 28 percent say we should withdraw all U.S. forces.

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The Obama White House may have started another war it can't win.

On yesterday's Sunday talk shows - Senior Adviser David Axelrod said of Fox News, "It's not really news. It's pushing a point of view.” And he asked that other news organizations not treat Fox like it's news.

The president's Chief of Staff, Rahm Emanuel, also said Fox is "not a news organization so much as it has a perspective."

This all started when White House communications director Anita Dunn called Fox an arm of the Republican Party and said the Obama administration would treat the cable news network as they would an "opponent."

Dunn is now in a dust-up with Fox News' Glenn Beck, concerning a speech where she quoted Communist leader Mao Tse Tung. Beck calls that "insanity."

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Americans are mad as hell… and they're keeping both big business and government in the crosshairs. The Wall Street Journal reports that historically the public focuses its anger on either one institution or the other — but not this time.

On the one hand, people are frustrated with the Wall Street failures that led to this financial mess; and they’re outraged at ongoing situations like bonus payouts at AIG. But Americans also see too much involvement by Congress and the federal government — accusing the administration of "socialism" and a "takeover" of the economy.

What's interesting here is some don't see government and business as opposing forces, rather they see "a unified elite pursuing one big swindle." For example — the government using hundreds of billions of dollars of taxpayers' money to bail out banks and automakers.

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In an attempt to make sure health care reform doesn't get rammed through Congress with little debate - a group of Senate Republicans has introduced a resolution requiring all bills be made public for at least 72 hours before a vote.

Not a bad idea. Since many in Congress don't read the bills before voting, maybe somebody should.

Over in the House, a group of more than 180 - mostly Republicans - is circulating a petition also requiring all bills to be posted online for three days. They're demanding the Democratic leadership schedule a vote on this. No vote so far, although Speaker Nancy Pelosi has pledged to post the final health care bill online 72 hours before the last vote.

But it's not just Republicans pushing for more transparency. A group of centrist Senate Democrats sent a letter to Majority Leader Harry Reid this week saying "every step of the process needs to be transparent" - they also asked for three days for the public to look at this stuff on the internet.

There's also an online campaign called Read the Bill along with a group called Read to Vote that's collected more than 80,000 signatures asking lawmakers to promise to read every page of every bill before voting. That'll happen…

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Republican Senator John Ensign of Nevada is just another example of what's wrong with Congress.

Ensign tells CNN he didn't break Senate ethics rules when he helped get a lobbying job for the husband of his mistress. Ensign claims he was very careful and merely "recommended" this man for a job like he's recommended a lot of other people.

But the New York Times recently reported that the senator played an active role in getting the lobbying position for Doug Hampton — whose wife he was sleeping with. And — that Hampton went on to lobby Ensign on behalf of his clients — which he's not supposed to do. Ethics rules bar him from lobbying his old boss for a year after leaving his job on Capitol Hill.

But this slime ball senator insists he did nothing wrong here. Senator, it's ALL wrong. When asked if he has any plans to resign, Ensign says: "I am focused on doing my work."

Now the Senate Ethics Committee (which is an oxymoron) has started a preliminary investigation… which, if history is any judge, is meaningless. They won't do anything - they never do when judging one of their own. The whole thing is a joke and shows the impunity with which these arrogant elected scumbags operate.

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It was supposed to be a "feel good" event for the White House and a break from all the fighting and name-calling over health care, but instead President Obama's back-to-school speech next Tuesday has created a firestorm of its own.

Some school districts around the country are refusing to carry it. Some Republicans say they're appalled at spending tax money to spread the president's "socialist ideology." They're comparing it to something you would see in North Korea or Saddam Hussein's Iraq.

On the surface, it seems like a good idea — a pep talk for the nation's schoolchildren from the president, calling on them to take responsibility for their education and do their best.

Instead it's starting to look like another political miscalculation by the White House with some Republicans and parents characterizing the ideas as developing a "cult of personality."

The White House is asking students to write letters about how they can achieve their short-term and long-term education goals. They will also release the text of the speech on Monday so parents know what to expect. Seems harmless enough.

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President Obama will try to re-gain the upper hand in the debate over health care reform by addressing a joint session of Congress next Wednesday.

The White House and the Democrats endured a brutal month of August — with rowdy town hall meetings and lots of Republican criticism. Anti-reform forces spent millions trying to defeat the legislation.

President Obama will reportedly use his speech to lay out more specifics for his plan. Specifics have been sorely missing from the president on this from the beginning, and he's come under a lot of fire for only outlining broad principles for what he wants… and leaving most of the details to Congress. Big mistake.

Republicans are already saying the president's speech will be too little, too late… they say the real problem is the substance… and that the American people aren't buying what he's trying to sell. But Democrats are hoping that a more forceful pitch from the president will help move this thing along.

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President Obama is getting ready to shift his strategy when it comes to health care reform — after a brutal month of August that wounded and divided his party.

Mr. Obama is considering a major speech that lays out his health care demands as soon as next week, when Congress returns from its recess.

And despite pressure from his base, the president reportedly has no plans to insist on a public insurance option. This would likely anger many liberals, but could show the president is willing to take on members of his own party to get things done. Nancy Pelosi said no bill would pass the House without a public option.

One top Republican, Senator Lamar Alexander is warning that there will be a "minor revolution" if Democrats reform health care without GOP backing. He says the town hall meetings show Americans are "scared to death" of reform; and going it alone would "wreck our health care system and wreck the Democratic Party."

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The American flag flies at half staff Tuesday following the death of Sen. Ted Kennedy. (PHOTO CREDIT: CHIP SOMODEVILLA/GETTY IMAGES)

When it comes to filling Sen. Ted Kennedy's leadership shoes, it doesn't seem at first glance that there is anyone who can.

As Politico puts it, no other senator possesses the combination of "celebrity, seniority, personal charm, legislative savvy and ideological zeal that made Kennedy the most effective liberal in a generation.”

Those who worked with him call Kennedy "irreplaceable.” Many have said the senator's presence was sorely missed in the health care debate. Because of his failing health, he was unable to spend much time on Capitol Hill the last few months. Although Kennedy was a staunch liberal, he was known for compromising with Republicans – a skill pretty much lacking in both parties these days.

Perhaps the only senator who had similar star power was Hillary Clinton. And, before she became Pres. Obama's secretary of state, some aides had hoped she would assume a Kennedy-like role in the Senate.

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President Obama and the Democrats may end up going it alone when it comes to health care reform. Democrats say they now see little chance of getting Republican support - and point to lawmakers like Senator Charles Grassley, who they say aren’t serious about striking a deal.

The administration says it had hoped to get bipartisan backing - but it's looking less likely. Instead, they would have to get moderate and conservative Democrats on board.

Party leaders in the Senate may wind up using a tactic where they only need 51-votes to pass a health care bill… instead of 60. One Republican warns if the Democrats go this route - it would be "like a declaration of war."

Going it alone has pros and cons for the Democrats… It could mean crafting the bill they really want. For example, the public option, which the White House appeared to be abandoning this week, would likely be back on the table.

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There are growing signs that President Obama may be willing to drop one of the key parts of his health care reform plan. If it happens, chalk up a big victory for the Republicans and the insurance companies.

After weeks of criticism against a proposed government-run insurance plan — and the increasingly rowdy town hall meetings — the president now says the public option for coverage is just a sliver of the overall proposal. But it's a big sliver — especially politically.

Health and Human Services Secretary Kathleen Sebelius has gone further — saying a direct government role in the reformed system is "not the essential element." Sebelius says "what’s important is choice and competition." One option that may replace the idea of the government running health care is nonprofit health cooperatives that would compete with the private sector.

If the president decides to drop the "public option" it has the potential to both help and hurt him in the ongoing debate. Mr. Obama would take away some of the steam from the Republicans' cries of "a government takeover" of health care. It also leaves room for compromise and potentially getting some Republicans on board.

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When it comes to stimulus and bailout money, has Pres. Obama kept his promise of transparency?

(CNN) – Pres. Obama has been promising the American people transparency ever since he was on the campaign trail.

And, when it comes to the $700 billion dollar bank and auto bailouts, known as TARP, and the $787 billion economic stimulus package, the president vowed an unprecedented level of openness.

A lot of information has been made public through websites like recovery.gov and financialstability.gov. The administration calls these sites “pioneering” compared to how government worked in the past.

But we’re talking about almost $1.5 trillion dollars here – and there is key information that the public doesn’t know about how and where this money is being spent.

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President Obama has nominated a paid consultant for Burger King to be the nation's top doctor.

In the midst of perhaps the most contentious national debate since the Vietnam War, President Obama has nominated a paid consultant for Burger King to be the nation's top doctor.

Can you spell tone-deaf?

Dr. Regina Benjamin has been paid 10-thousand dollars since last year to serve on a scientific advisory board for the company that brings us the Whopper and the B-K Triple Stacker.

According to the Washington Times, Burger King says the doctor was on the company's nutritional advisory panel... which is meant to "promote balanced diets and active lifestyle choices."

The Department of Health and Human Services says Benjamin was advocating for food that was lower in salt and recommending that nutritional information appear on packaging. They add that she will resign from Burger King once she's confirmed by the Senate as surgeon general and will "continue to promote healthy eating and exercise." You want fries with that?

But, many aren't buying it and see a conflict of interest. After all, Burger King is still a fast food joint. And, in a nation where one-third of adults are obese, fast food restaurants aren't helping any.

Since her nomination, Dr. Benjamin has won support from both sides of the aisle, particularly for running a health clinic for the poor after Hurricane Katrina – but there's also been criticism. As we reported in the Cafferty File last month, some believe that the president's selection of an overweight candidate for the nation's top doctor sent the wrong message. Now we find out she works for Burger King.

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The increasingly bitter battle over health care reform is making some people question President Obama's leadership.

(CNN)–The increasingly bitter battle over health care reform is making some people question President Obama's leadership.

Critics suggest that when it comes to governing on issues like health care, the president is missing the smooth confidence and "Yes we can" charisma that got him elected.

New York Times Columnist Maureen Dowd writes of this debate that seems to be spinning out of control:

"President Obama has proven quicksilver instincts, but not in this case. You would think that a politician schooled in community organizing and the foul balls of a presidential campaign would be ready to squash this kind of nuttiness." Dowd adds that Mr. Obama knows how to rise to the occasion, but he may be running out of time to do so.

On Salon.com, Camille Paglia criticizes the president for proposing only "vague and slippery promises" when it comes to health care. Paglia, who supports the president, faults him for handing over much of the debate to congressional leaders and also seeming to be in an unexplained rush to get something – anything – passed.
She compares it to the "massive boondoggle" of the economic stimulus package, which the president pretty much gave Congress free rein to turn into one big pork project.

And it's not just health care. The list of issues this president faces is mind-boggling and probably unprecedented: from the economy and healthcare to immigration reform (which Mr. Obama now says won't happen until next year) on the home front... to Afghanistan, Iran, and North Korea overseas.

Critics say on a lot of this stuff, the president is talking, not leading.

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(CNN)–First she called Pres. Obama's health care plan "evil" and said it would create "death panels." Now Sarah Palin is urging restraint at town hall meetings.

In comments on her Facebook page, the former governor of Alaska (who quit in the middle of her first term) says there are many "disturbing details" in the health care bill, but that "we must stick to a discussion of the issues and not get sidetracked by tactics that can be accused of leading to intimidation or harassment."

Palin suggests the disruptive protests "diminish our nation's civil discourse", and says opponents shouldn't give supporters of health care reform any reason to criticize them.

This is the same woman who a few days ago was spreading a false claim that Pres. Obama would force the elderly and disabled to appear before a "death panel." She said a group of bureaucrats would get to decide whether people like her parents and her son, who has Down Syndrome, could get health care.

There's no such provision in the bill. Gee, do you suppose she didn't read it? Rather, a House committee passed a provision that would let Medicare reimburse seniors who want counseling on end-of-life issues. Once again, Sarah Palin's version of reality is at odds with reality.

Whatever the reason, Palin backed down. See, she wasn't getting much support. Several Republican governors distanced themselves from her, either refusing to comment or saying Palin could "speak for herself." Not exactly the way to build that right-of-center coalition she keeps talking about.

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(CNN) - In an update to a story we brought you last week in the Cafferty File:

A group of Republican and Democratic senators is now saying “not so fast” to the House’s plans to spend more than a half a billion dollars on new jets.

The Wall Street Journal reports that these senators — along with the Pentagon — are critical of the $550 million plan to buy 8 new Gulfstream and Boeing planes for government officials and VIP’s to fly around in.

Democratic Senator Claire McCaskill says, “The whole thing kind of makes me sick to my stomach” adding that the move paints members of Congress as “out of touch”, spending money like it’s Monopoly money. Several senators are planning to oppose the purchase when they take up the bill in the fall.

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The protests at town hall meetings on health care reform continue to get louder and more violent.

One event in Tampa, Florida, got particularly ugly… with hecklers and people pushing and shoving. As the Democratic congresswoman addressed the crowd - people chanted "read the bill" and "tyranny."

Hundreds couldn’t even get into the meeting - as demonstrators on both side of the debate shouted at one other.

In St. Louis - there are reports that six people were arrested after health care protests broke out at what was supposed to be a forum on aging held by a Democratic congressman.

House Speaker Nancy Pelosi was even at the center of about 200 protesters in Denver where she was visiting a homeless clinic. The crowd was loud, but orderly - about half supported the reform and half opposed it.

Pelosi and other Democrats insist these protests at meetings sponsored by Democrats won’t derail health care reform once Congress gets back to work next month.

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As the country struggles with the worst recession since the Great Depression and millions of Americans look for work - Congress is getting ready to spend some big bucks on private jets for itself.

The House has approved almost $200 million to buy three brand new Gulfstream jets - two of them meant for members of Congress and other top government officials. These jets can fly faster than 600-miles an hour; and can go non-stop from Washington to as far as China or Japan without refueling.

The Pentagon only requested one of these jets. But the House Appropriations Committee decided to add two additional planes - saying they should be assigned to the DC area.

Reports say the funding for these Gulfstream jets was pushed through by two members of the committee - both from Georgia, where they are made. One of these congressmen tells ABC News that buying the jets "supports local industry" and will mean jobs for his constituents.

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The Obama administration is not ruling out tax increases on the middle class. And this could be a very big deal.

During the campaign - candidate Obama repeatedly promised the middle class wouldn't see their taxes increase "one single dime." In fact, he said he would cut taxes for "95-percent of all working families, because, in an economy like this, the last thing we should do is raise taxes on the middle class."

Fast forward a year… After bank bailouts, auto bailouts and the economic stimulus package — the president is trying to figure out a way to pay for all this plus health care reform while also reducing deficits. There aren't many choices: Either raise taxes or cut spending. White House Press Secretary Robert Gibbs today insisted the president wouldn't break his campaign promise.

But Treasury Secretary Tim Geithner and National Economic Council Director Larry Summers both sidestepped questions over the weekend about raising taxes on the middle class. Geithner said they’re not ready to rule out a tax increase to lower the deficit, while Summers pointed out that health care overhaul needs money from somewhere, saying "it is never a good idea to absolutely rule things out, no matter what."

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Slapping a tax on fattening foods could help pay for health care reform while also combating the nation's growing obesity epidemic. A new study by the non-partisan Urban Institute says a 10-percent tax on fatty foods could raise more than $500-billion over the next 10-years.

They liken it to the steep taxes on tobacco, which helped dramatically reduce the number of smokers in this country.

However, taxes alone won't do the job when it comes to battling obesity. The study also recommends banning advertising of fattening foods to children and better labeling these products.

Restaurants and beverage groups have already waged a multimillion-dollar media campaign against any new taxes on food or drinks. They say it's no time to add taxes on "the simple pleasures we all enjoy" and argue this tax would be unfair since it soaks the poor.

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After the arrest of Harvard Professor Henry Louis Gates spiraled into a national debate about race, President Obama is hoping to take things down a notch with a casual meeting at the White House.

The president is scheduled to meet Thursday evening with Professor Gates and the arresting officer — Sgt. James Crowley. The White House says the meeting — which is set to happen at a picnic table outside the Oval Office — is about "having a beer and de-escalation."

It's clearly to the president's advantage if he can take the heat away from this story, get it out of the news, and let the focus return to his priority of health care reform.

Mr. Obama has said he hopes the incident in Cambridge can end up being a "teachable moment" for the country. The president acknowledged that he contributed to the whole incident by saying the police "acted stupidly" without knowing all the facts in the case.

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While stepping down as Governor of Alaska - Sarah Palin is blasting many who she sees as critics, including the news media.

In the kind of speech only Palin can give, she said freedom of the press was an important right… and one that soldiers have died to protect… adding, "So, how about, in honor of the American soldier, you quit making things up."

Palin also said, "Our new governor has a very nice family, too, so leave his kids alone."

The former governor didn’t elaborate on her criticism of the media… but in the past she's talked about her and her family being unfairly treated by reporters and bloggers. However, she didn't seem to have a problem with the media when she was using her family to try to get elected last fall.

Palin also criticized so-called Hollywood starlets who are active against gun rights, along with the "partisan operatives" who filed ethics complaints against her. She even went after one undefined group who she said, "seem to just be hell-bent on maybe tearing down our nation, perpetuating some pessimism and suggesting American apologetics." Say what?

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The Cambridge cops want an apology from the President of the United States for saying the police "acted stupidly" in the arrest of Harvard Professor Henry Louis Gates Jr.

They didn't get one today – but they got something:

The president made a surprise appearance in the White House briefing room today… saying he spoke with the arresting officer and that he didn't mean to malign the police department. But he stopped short of apologizing.

This was a local story that likely would have gone away in a day or two… until President Obama got involved.

Mr. Obama criticized the arrest of Gates even though he admitted he didn't know all the facts. The first black president also talked about how blacks and Hispanics are still unfairly singled out for arrest.

Gates was arrested for disorderly conduct — when police responded to a possible break-in at his home. They say Gates at first refused to display ID… and then accused the officer of racism.

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As millions of Americans get ready for the July 4th holiday weekend, some more dreary news on the job front.

The government reported another 467,000 jobs were lost in June — far worse than forecast and the first time in four months that the number of jobs lost went up.

The unemployment rate — now at 9.5 percent — has gone up for nine straight months and sits at a 26-year high. One expert describes these numbers as not catastrophic… but "still pretty damn lousy."

As the recession drags on, a new Gallup poll shows 71-percent of Americans say they have cut back spending… while 88-percent say they're watching spending very closely. This is despite the fact that 78-percent of those surveyed say they have enough money to buy only what they need.

21-percent say they worried "yesterday" about spending too much.

Gallup suggests these results show Americans may have reached a "new normal" of spending less and that frugality may become a permanent part of the national fabric.

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House Minority Leader John Boehner calls the climate change bill a "pile of manure." Only he used the other word for it.

The Democrats released a 300-page amendment to this 1,200-plus page bill at three a.m. on Friday — just hours before the chamber would vote — and before the July 4 recess. Much like the economic stimulus bill, it seems nearly impossible that members even had the chance to read it. The bill passed by a narrow margin — with virtually no Republican support.

The measure would reduce greenhouse gas emissions 17-percent by 2020 and 83-percent by 2050 through the so-called "cap and trade" program where companies would buy and sell emissions credits. It would also force utilities to make more power from renewable sources.

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South Carolina Governor Mark Sanford admits he's been having an affair with a woman from Argentina — which is where he's been for the past week. This comes after days of speculation on the whereabouts of the Republican governor, ever since he went AWOL last Thursday.

Sanford's staff said Monday that he was hiking along the Appalachian Trail, where Sunday was nude hikers day. That's where he told his staff he might be going. I wonder if he knew it was nude hikers day. Probably not.

As late as yesterday, Sanford's wife told CNN she still hadn't heard from her husband. Sanford has four sons — and was away from his family over Father’s Day weekend… Charming man.

Sanford announced he's resigning as head of the Republican Governors Association. He was also once thought to be a contender for the 2012 presidential nomination. Governor Sanford is not what the Republican Party needs at this moment — or ever.

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There's growing speculation in Alaska that Governor Sarah Palin won't run for reelection in 2010. Politico reports that top Republicans and Democrats are quietly lining up to run for the office — should Palin decide not to.

No one has filed the official paperwork yet; but many are taking the governor’s silence as a sign that she’ll opt out of a second term in order to get more involved in national politics.

One politician who is weighing a run put it this way: "If you’re Palin, once you've flown first class, you don't go back to coach. She's been to the show and certainly seemed to like it there."

He suggests that barring some "unforeseen collapse on the national stage," Palin won't run again for governor.

Some experts expect the governor to wait as long as possible before announcing her plans — that way she can keep her options open and minimize her lame duck status as governor if she decides not to run again.

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President Obama's plan to push through health care reform this year is very much in danger of being dead.

Top Democratic advisers are urging the president to get even more involved in the debate before it's too late. The Congressional Budget office last week put the price tag at more than $1 trillion over the next decade; and said it would still leave millions of Americans uninsured.

Republicans have seized on this, insisting that health care reform may be too expensive at a time when we're already facing huge deficits. Senator Lindsey Graham called the CBO estimates a "death blow" to a government-run health care plan.

Some in the GOP suggest an overhaul of the nation's health care system just might have to wait for a while. They're also accusing the White House and Democrats of trying to rush through what they see as flawed legislation this year, before the mid-term elections in 2010.

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When it comes to showing support for thousands of Iranian protesters — critics say President Obama is not doing enough.

Republican Congressman Mike Pence has introduced a resolution that would "speak a word of support for the people of Iran."

He says he doesn’t think the U.S. should endorse the opposition candidate; but rather show support for protesters who are "risking their lives for free and fair elections."

Also, The New York Times reports that while some senior administration officials like Vice President Joe Biden and Secretary of State Hillary Clinton support the president’s approach, they too would like to strike a stronger tone of support for the protesters.

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Whether or not there's another political revolution in Iran — there's no doubt the country has already witnessed a technological revolution.

Iranian officials have been trying to clamp down on the flow of information in all the ways these regimes do — restricting the coverage of western journalists, kicking others out of the country, shutting down web sites.

But it's not working this time — and one of the big reasons is social media networks like Twitter and Facebook. Many of the young demonstrators — 70-percent of Iranians are under 30 — have used these technologies as a tool to coordinate their protests over the election's outcome. They're also posting graphic pictures and videos of the crackdown by officials.

The U.S. State Department points to Twitter as one of the ways Iranians can "get the word out," and officials in this country are even following these social networks. In fact, the government contacted Twitter at one point asking them to delay a planned update that would shut the system down temporarily.

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CIA Director Leon Panetta says it's almost as if former vice president Dick Cheney is wishing for another terror attack on the U.S. in order to make his point. Panetta tells The New Yorker that Cheney "smells some blood in the water" on the issue of national security.

He suggests Cheney's actions are like "gallows politics" and also calls it "dangerous politics."

Dick Cheney — whom we barely saw or heard from for eight years — has been a very vocal critic of President Obama these past few months… especially when it comes to national security. He has said that the new president is making the U.S. less safe by rolling back Bush era policies.

Cheney has criticized President Obama for ordering the closing of the Guantanamo Bay prison and for stopping the use of enhanced interrogation techniques. In a speech last month, Cheney called some of Obama's decisions "unwise in the extreme."

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Sarah Palin didn’t make a speech — but that didn’t stop her from stealing the show at a big Republican fundraising dinner in Washington last night. The Alaska governor’s appearance was a question mark up until the last minute… and followed weeks of an on-again, off-again saga.

Palin had originally been announced as the keynote speaker, but her office said she never confirmed the attendance. Later they wanted to know if she would speak at the dinner; party leaders said she could but then took back the invitation… worried that Palin would upstage Newt Gingrich, the new keynote speaker. Lots of drama.

But Palin, along with her husband Todd, got big cheers from the audience when they were introduced onstage last night; and their table was the only one in the ballroom with a crowd around it.

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In reaching out to the world’s one and a half billion Muslims with today's historic speech, it's unclear if President Obama is also pushing away America's longtime ally Israel.

Speaking in Cairo - the president recognized the U.S.'s unbreakable bond with the Jewish state and the horror of the Holocaust, but also talked about the suffering of the Palestinian people. He described their situation as intolerable and stressed the need for a two-state solution.

President Obama called on Palestinians to abandon violence - pointing to America's own civil rights history and saying it was a "peaceful and determined insistence" that brought about equal rights.

And, he once again called on Israel to stop building settlements; and to allow Palestinians to live and work and develop their society. Israeli Prime Minister Benjamin Netanyahu has already rejected President Obama's call for a settlement freeze.

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As President Obama gets ready to address the Muslim world in Cairo tomorrow, one Republican is accusing him of being too apologetic about America's past mistakes. Mitt Romney refers to it as a "tour of apology," and says that of course the U.S. makes mistakes, but that it’s inappropriate to "go around the world apologizing."

The former - and perhaps future - Republican presidential candidate says there's nothing wrong with showing our respect for the Muslim world. But he thinks President Obama should spend more time talking about the sacrifices the U.S. has made for other countries - like during World War II.

Romney points to an interview that the president gave on Arabic TV where he said the U.S. had dictated to the world; and he says a British newspaper declared Obama the president who’s the most critical of his own country while on foreign soil.

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President Obama made good on a campaign promise Saturday night… by taking his wife on a date to New York City. The president says he promised his wife he would "take her to a Broadway show after it was all finished."

Mr. Obama and the First Lady flew from Washington to New York on a Gulfstream jet, then took a helicopter from the Marine One fleet from JFK airport into Manhattan. The first couple dined in the Village and then headed to Times Square, where they saw 'Joe Turner's Come and Gone' — a show about a man coming to terms with the history of slavery.

New Yorkers seemed to love it all, with crowds eight-deep in places, but critics are accusing the president of insensitivity. The Republican National Committee says as the president prepared to "wing into Manhattan's theater district," GM prepared to file bankruptcy and families across America continue to struggle to pay their bills.

They added that if President Obama wanted to go to the theater… why wasn't the presidential box at the Kennedy Center good enough?

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Former President Bush and former First Lady Laura Bush board Marine One following the inauguration of President Barack Obama.

While Former Vice President Dick Cheney hasn’t been able to keep his mouth shut since leaving office, the former president has been largely silent. Until last night that is.

Speaking in Michigan, George W. Bush repeated Cheney’s claim that the enhanced interrogation program — what some people call “torture” — was legal and helped get valuable information that prevented more terror attacks… and saved lives.

The former president told the crowd of 2,500 people that after 9-11, he vowed to take quote “whatever steps were necessary to protect you.” Bush said after the capture of Khalid Sheikh Mohammed, he wanted to determine what means were legal to get information from the terror suspect.

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Judge Sonia Sotomayor would be the first Hispanic U.S. Supreme Court justice if confirmed.

Republicans are in yet another tough spot – this one when it comes to the confirmation of Judge Sonia Sotomayor to the Supreme Court of the United States. Chalk up another brilliant bit of political strategy to our new president.

President Obama’s nominee would be the first Hispanic justice — and only the third woman justice — in the history of the nation’s highest court.

Conservative critics are branding her as a liberal activist judge, and are pointing to her past comments. In 2001, Sotomayor said, “I would hope that a wise Latina woman with the richness of her experiences would more often than not reach a better conclusion than a white male who hasn’t lived that life.”

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