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American Morning
Bush Campaign Filing Complaint With FEC; Fast-Food Lawsuits
Aired March 10, 2004 - 9:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Good morning. Senator John Kerry's campaign continues to surge; four more primary wins yesterday. Today, he's making a move to solidify the Democratic party.
One person, one quarter of a vote? A plan at California aimed at getting young people interested in the political process.
And a brutal sucker punch puts one hockey player in the hospital, another under a criminal investigation.
Ahead this hour, here on AMERICAN MORNING.
ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.
SOLEDAD O'BRIEN, CNN ANCHOR: Good morning. Welcome back, everybody.
Other stories we're following this morning, the election eight months away. No need to panic. Or is there? President Bush's approval rating has fallen a fairly long way. We're going to get into the things that the President is doing and needs to do, also, to retake the lead in the campaign.
HEMMER: Also, if you haven't done your taxes just yet, that's a good thing today. We're talking about a number of deductions you may not know about. A good chance some may apply to you, and you'll hear them this hour here on AMERICAN MORNING.
O'BRIEN: Mr. Cafferty, good morning.
JACK CAFFERTY, CNN ANCHOR: How you doing? We've got government -- Centers for Disease Control predicting that by as earlier as next year the biggest cause of preventable death in this country will be obesity. Not tobacco, not alcohol, fat people. We'll take some of your e-mails on who is responsible for that.
Scary thing; 400,00 people here...
HEMMER: Obesity is tied to every major disease...
O'BRIEN: Right.
CAFFERTY: Yes, cancer, heart disease and diabetes the three biggest offenders, sure.
O'BRIEN: All right. Let's get to our top stories, though, first.
Six suspects being questioned in Iraq in connection with a deadly attack that killed three civilian workers, including two Americans. The incident took place in Karbala last night. Iraqi police said five of the suspected attackers were dressed in Iraqi police uniforms. It's not clear, though, if they were really members of the Iraqi police force.
Israeli and Palestinian leaders are expected to meet next week for the first time in eight months. Israeli Prime Minister Ariel Sharon and his Palestinian counterpart, Ahmad Quray, had planned to meet before, but talks were delayed several times. Israelis sources say that the summit has been tentatively set for next Tuesday.
Reports now of more violence there, though. Palestinian sources say that four members of the Al Aqsa Martyrs Brigrades were killed in a raid by Israeli troops in Jenine.
In Chesapeake, Virginia, formal sentencing set today for convicted teenage sniper Lee Malvo. The judge is required to follow a jury's recommendation to sentence Malvo to life in prison without parole. Malvo was convicted of capital murder in the shooting death of FBI analyst Linda Franklin. She was one of 10 people killed during the October 2002 sniper attacks. Got more on the sentencing coming up in just a few minutes.
In health news, coffee might actually protect you from diabetes. Researchers in Finland say women who drank three to four cups a day lowered their risk of getting adult-onset diabetes by 29 percent. The men lowered their risk by 27 percent. The reason for the apparent health benefit remains unclear, but according to the study, the benefit increased with consumption.
And in Britain, claims of doggy doping are swirling around the world famous Crufts Dog Show. According to British newspaper reports, the target of the saboteurs was a prized Doberman named Kerry (ph). They dogs owners claim that Kerry (ph) was given meat laced with a sedative before she entered the ring, and they were forced to pull her out of the competition. Britain's Kennel Club says an investigation is now under way.
HEMMER: Anything for victory.
O'BRIEN: That's a cutthroat business there, obviously there, huh?
(WEATHER REPORT)
HEMMER: Let's start with politics. Old political rivals meet today in Washington, when Senator John Kerry and Howard Dean get together. Aides say it is only a chance for the two of them to know and like each other yet again.
Senator Kerry is fresh off a sweep of primaries in four southern states. Results yesterday never really in doubt. Senator Kerry will mathematically become the Democratic presidential nominee in coming days. They'll go in Illinois next week. And yesterday, he took aim at a Bush campaign message saying the president's "stubborn leadership has steadily led America in the wrong direction."
The president touting his economic agenda today in Ohio, which has an unemployment rate well above the national average. We're told Mr. Bush will address the outsourcing of American jobs while arguing against what he calls Democratic tax and spending plans.
Meanwhile, the Bush campaign today filing a complaint with the FEC, the Federal Election Commission, saying it seeks to have a $5 million anti-Bush ad campaign pulled from the air. The Bush campaign says the ad, which is from a group back by Senator Kerry's former campaign manager, violates New campaign finance laws because it paid for the ads with soft money contributions.
More on this now with our political analyst, Carlos Watson, up early today in Mountain View, California.
Carlos, good morning to you.
CARLOS WATSON, CNN POLITICAL ANALYST: Bill, good morning.
HEMMER: Nice to have you. Talk about the Democratic dollars in the ads. Does the White House have a case on this matter?
WATSON: We won't know for a little while. I think the reality is, by the time we figure out, the dollars will probably be spent. And Bill, what's interesting to me is these are just a couple million of what I expect will be north of $100 million that some of these groups hope to spend over the next months.
HEMMER: So if you go ahead and spend it, and you do the ads and you come back and say it's wrong, is there a penalty after that or not?
WATSON: There's a penalty. But, more importantly, there could be a penalty for the president in terms of his approval numbers. Right now, as you know, he's behind in most polls. And realistically, now is the time for him to catch up, not during the summer when many voters may stop paying attention for a while.
HEMMER: You mentioned the poll numbers. This was out -- CNN-USA Today-Gallup -- 52 to 44, favoring Senator Kerry. Is this what happens with an incumbent in the White House?
WATSON: Actually, it's unusual. You have to go back to 1976, when Gerald Ford was the incumbent running against Jimmy Carter, when at this point, in March and April, an incumbent is actually behind. Ronald Reagan and Bill Clinton, both of whom won re-election, were ahead at this point. In fact, Bill Clinton had increased his lead from four points in January against Bob Dole, the presumptive challenger, to 14 points at this point.
And so not only is the president behind and not only is that unusual, but the fact is that the numbers have gotten worse over the last two or three months. He's gone from some 12 points up in a hypothetical match-up against John Kerry to, as you said, some eight points down. Significant swing; a lot to worry about.
HEMMER: Two areas where apparently there is concern, women and the economy. What are you finding out about that?
WATSON: There's been a gender gap for a while between Democrats and Republicans. Democrats usually doing better among women. Al Gore won among women by six points. Lost to George Bush by nine points among men, and still ended up wit's majority of the vote.
George Bush is now behind by double digits in most of these polls among women. And, in fact, his lead among men has shrunk in half from about 18 points to about nine points over the last two polls. So real worry about the support among women. And obviously, on the economy, that's where the president is getting some of his lowest numbers.
Maybe the two most important things on the economy, Bill, are that, one, 68 percent of swing voters are saying they don't think the president is doing enough. So it's not just the numbers out there, but the perception of whether or not the president is doing enough.
HEMMER: Which explains -- I don't mean to cut you off there -- which explains why the message is going out today in this economic speech. With Senator Kerry, you talk about a Dean syndrome. Explain that for us.
WATSON: Well, you know, Howard Dean was important in setting the tone for this party and being -- as they said, he wanted to drive the party away from being Bush-lite, much more populous, much more aggressive rhetoric. And the fact that he's coming back, perhaps, ultimately into the Kerry camp, can only mean another significant boost. Now is the real time for the president to sharpen his message not only to run the television ads, but to begin, as I said before, with telephone calls, with -- and with local organizing lots of states to try to move the numbers in some of these battleground states.
HEMMER: Thanks, Carlos. Good to see you there in California.
WATSON: Good to see you. Have a good one.
HEMMER: OK.
HEMMER: Soledad?
O'BRIEN: An all-star from the Vancouver Canucks will meet with Nation Hockey League officials today after a horrific on-ice incident. The Canucks' Todd Bertuzzi sucker punched Colorado's Steve Moore on Monday night. Ouch.
Moore landed face-first on the ice; Bertuzzi on top of him. Moore suffered a broken neck, a concussion, and also deep cuts on his face. He's now hospitalized in Vancouver.
Bertuzzi's been suspended indefinitely. And Vancouver police are now investigating.
HEMMER: That is just a brutal shot. You watch that thing over and over. Look at that. Wow. The second time in four years they're going to have a police investigation actually in Vancouver from a hockey game.
O'BRIEN: Do we know anything about Moore's prognosis? I mean, a broken neck, obviously serious.
HEMMER: Yes. I was reading something earlier. I haven't seen anything updated, obviously.
It's early out there on the West Coast. He's still in Vancouver. So best to his health. Get better soon.
In a moment here, obesity quickly becoming the number one preventable killer in America. We'll look at the disturbing trend in a moment, and what they're saying in D.C. about it.
O'BRIEN: Also, don't send your return to the IRS just yet. You might actually be overpaying your taxes. We've got some tips about deductions you might have missed.
HEMMER: Also, George Foreman could be trading in cooking mitts for the boxing gloves. Is that so? We'll ask him live here on AMERICAN MORNING this hour.
(COMMERCIAL BREAK)
HEMMER: Obesity is a problem in America. But are fast-food restaurants to blame for that problem? Some people say yes, and one group even took that case to the court. Today, the House may pass a bill that would ban such lawsuits.
Joe Johns is live on Capitol Hill for more on this.
Joe, good morning.
JOE JOHNS, CNN CONGRESSIONAL CORRESPONDENT: Good morning, Bill. Backers of this measure say they are taking a stand against frivolous lawsuits, but the critics say it's not the lawsuits that are frivolous, it's the legislation.
(BEGIN VIDEOTAPE)
JOHNS (voice-over): Billions and billions served, but whose fault is it if you eat too many and get fat? Washington lawyer John Banzhaf blames the fast-food restaurant.
JOHN BANZHAF, LAW PROFESSOR, GEORGE WASHINGTON UNIVERSITY: John Banzhaf and many other lawyers want to sue fast-food companies for their fair share of obesity, which costs Americans $117 billion a year, most of which is paid by non-obese taxpayers.
JOHNS: Banzhaf, who spearhead the lawsuits against the tobacco industry, says the threat of similar lawsuits against fast-food restaurants will force them to serve healthier food. But the bill before the House would remove that threat by eliminating the right of consumers to sue if they gain weight. REP. RIC KELLER (R), FLORIDA: We've got to get back to those old-fashioned principles of personal responsibility and common sense, and get away from this new culture where everyone plays the victim and blames other people for their problem.
JOHNS: States are also moving to protect the fast-food industry from civil lawsuits. At least 19 have such proposals as of March 1. Louisiana actually enacted a law. Despite all the attention, there's no epidemic of litigation.
A high-profile case against McDonald's was dismissed. Of a handful of other cases, none has been successful. The industry says its insurance rates will go up if Congress doesn't act. Some argue a well-heeled interest group is trying to get around the courts.
REP. BOBBY SCOTT (D), VIRGINIA: We ought not have special privileges for the politically powerful. Cases are to be tried in court.
(END VIDEOTAPE)
JOHNS: Now, this is an election year, and limiting liability is a key issue for congressional Republicans, even if this bill passes the House. There's no way to tell whether it will pass the Senate.
Bill, back to you.
O'BRIEN: Joe, thanks. Joe Johns on Capitol Hill -- Soledad.
O'BRIEN: Well, no matter who is to blame, the reality is that obesity could soon overtake smoking as the country's number one preventable killer. That's according to the federal government, which has launched an ad campaign to try to get folks to trim down.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Check it out, man.
UNIDENTIFIED MALE: What is that?
UNIDENTIFIED MALE: It looks like someone's belly. Eh, probably lost it walking on the beach.
UNIDENTIFIED MALE: Just leave it. Let's go.
(END VIDEO CLIP)
O'BRIEN: Joining us this morning, Dr. James Young. He's a cardiologist. Also chairman of the Division of Medicine at the Cleveland Clinic Foundation.
Nice to see you again, sir. Thanks for being with us.
DR. JAMES YOUNG, CHAIRMAN, DIVISION OF MEDICINE, CLEVELAND CLINIC FOUNDATION: Thank you very much. O'BRIEN: Let's talk a little bit about this study. They found that poor diet and physical inactivity caused 400,000 deaths in 2000. And also, that obesity is catching up, as we mentioned, to tobacco as the leading cause of preventable death.
How shocked are you by the results of this study?
YOUNG: Well, Soledad, I'm not very surprised at all. We've seen this coming. The prevalence in the United States of obesity went from about 10 or 12 percent in 1990 all the way up to 21 percent in 2001. And is probably pushing 25 percent right now.
That's a huge increase. It's a huge problem. No pun intended there. But it's a big issue.
O'BRIEN: And the big issue, of course, the biggest part of the problem is that it's a trend that's going the wrong direction. So how do you reverse that trend? Did you think ads like the one we just showed are a step in the right direction? Do they actually work?
YOUNG: Absolutely. I think public education is critical here, and I think we need to do three things. Number one, hit our youth. Talk to them; teach them about the problems, much as we're doing with cigarette smoking, for example.
Number two, I think we need to urge physical activity in our schools more so. And number three, we need to attack the problem in our adults so that we can get people to trim down and cut their risk of major cardiovascular events.
O'BRIEN: But as you are well aware, people have never been fatter, and never more before are they more into diets and count calories and know more about fat content and carb content. So, to some degree, the more knowledge you get, doesn't necessarily mean you're going to be healthier.
YOUNG: Well, perhaps. But at least it can give people some tools to try to work with. And I personally think that all the attention being paid to this issue will, in the end, pay off.
O'BRIEN: At the end of the day, what do you blame? Do you think that people who are obese don't understand the health implications for the extra weight that they are carrying? Do you think that society has just changed so much in the last 10, 20 years that, frankly, there are just these pressures on people that force them to be fatter?
YOUNG: It's a terrible sociologic problem, and I think people don't realize the cost that they pay with physical inactivity, poor nutrition habits and gaining weight. And I think if we get back to some basics, get back to basic education and encouraging a healthy lifestyle, particularly a lifestyle with exercise and wise eating, despite the diet controversies that are out there, that's going to help.
O'BRIEN: Dr. James Young from the Cleveland Clinic Foundation. Nice to see you, sir. Thanks for being with us. YOUNG: Thank you.
HEMMER: Could be the story of the day. It is our "Question of the Day," Jack.
CAFFERTY: Indeed it is. And viewers have some interesting ideas on that question, who is responsible for fixing America's weight problem?
Rhonda in Ubly, Michigan, has her finger right on a big piece of the answer. She writes this: "I'm the mother of three girls ages 8, 7 and 3. It's pretty hard to compete with Scooby Doo and Dora the Explorer pimping their sugar treats on TV. How about having characters advertising for carrots for a change? And by the way, where are the good-for--you food commercials?"
Very big piece of the action there. Kids watch a ton of television. Yeah, what?
O'BRIEN: Just say no.
CAFFERTY: You mean don't let them watch TV?
O'BRIEN: No. Just don't let them eat the stuff. Say, no, you can't eat the Dora the Explorer cereal, no. Sorry, Rhonda.
CAFFERTY: All right, Rhonda. That should handle your question. Now we'll go to the next one.
O'BRIEN: I solved that one. Go on.
CAFFERTY: Mike in Hopatcong, New Jersey: "Think of this as group therapy here. When people get their stomachs stapled, what do they find? That if they eat less, they lose weight. Duh."
Peter in New Windsor, New York: "Let me get this straight. The government spent 40 years criminalizing smokers. They quit and they gain weight. Now we're stuck with bigger health bills than ever before and a myriad of obesity related diseases. The lesson learned? Government ought to stay out of telling people what to do when it comes to their health."
Ken in Kingston, Nova Scotia: "Putting the government on the hook for teaching our kids about nutrition is a parents' cop-out. We all know kids will acquire tastes for foods that we introduce them to at dinnertime in our own homes."
And Christopher in Burlington, Vermont: "Fix the problem at its source: the delusionally soothing and recurrent theme that peace, happiness and contentment can be found within special sauce and a nearby deep fryer."
I'm going to go get a burger.
O'BRIEN: You know, we were talking about that.
HEMMER: Supersize that bad boy.
CAFFERTY: There are a lot of subliminal messages, though, that deal right to that very concept. But, you know -- so.
O'BRIEN: Have we solved this problem yet this morning?
HEMMER: Not yet. We have 40 minutes left.
CAFFERTY: Well, you took care of that lady in Michigan.
O'BRIEN: Well, you know, I know how hard that is. But I just -- but not that I'm good at it, but my parents were great at it. No, no, no, no.
CAFFERTY: Rhonda, lock your kids in a room and feed them lettuce.
O'BRIEN: That's not what I'm saying. Stop. I'm saying my parents said no a lot.
CAFFERTY: You know the other thing? When I was a kid, which is -- you weren't even here then. In the schools, you went to health class a couple of days a week, and three days a week you went to PE, Physical Education.
O'BRIEN: Right.
CAFFERTY: And then PE, you had to do push-ups and sit-ups and you had to run laps and you had to climb ropes. And you had to do it, and you had to do it to the satisfaction of the teacher, or you didn't pass. And if you didn't pass, you didn't get promoted and you didn't graduate. None of that stuff exists anymore.
HEMMER: Just eat lettuce.
CAFFERTY: Yes.
O'BRIEN: Lock yourself in a room and eat lettuce.
Still to come this morning, five weeks until tax day. There's a good chance you'll be overpaying this year. We're going to be telling you how you can prevent that when AMERICAN MORNING continues.
(COMMERCIAL BREAK)
O'BRIEN: With the mother of all deadlines April 15, a little more than a month away, many taxpayers are feeling a little tense. Well, this morning, our weekly "90-Second Tip" series, we're going to try to relieve some of that tension and also ease your tax burden at the same time.
David Bach is our personal finance contributor, also our tax masseuse.
DAVID BACH, PERSONAL FINANCE CONTRIBUTOR: Tax masseuse? I like that. (CROSSTALK)
O'BRIEN: You're here to talk about some deductions that often are overlooked. I guess the General Accounting Office says something like $950 million overpaid by American taxpayers?
BACH: Incredible.
O'BRIEN: Is it because people are having too much money withheld or why?
BACH: The government is actually telling Americans that they should be itemizing their tax deductions. Many Americans don't itemize their tax deductions. And what that means is you are losing out on free money.
An example would be this: if you earn $50,000 a year, and you had $10,000 in itemized deductions, that could put potentially $3,000 to $4,000 back in your pocket. And that's more money than most Americans save. So again, these tax deductions at the end of the year are just critical.
O'BRIEN: Let's talk a little bit about what exactly a deduction is. I mean, I know what a deduction is, but what sorts of things are deductible, and what sorts of things are completely not deductible, speaking generally?
BACH: It is unbelievable how much is deductible. I mean, we're going to show this book here in a second.
Almost -- I don't want to say everything is deductible, but a lot of things are deductible. And I mean, we're going beyond things like, for instance, giving money to charity. I mean, let's go through the five right now. We've got five simple things most people would never think about that are itemized deductions that can put thousands of dollars back in your pocket right now.
O'BRIEN: All right. And let's get through them. The first thing you say is the points that you pay to refinance your home...
BACH: And this is something that people don't realize. When you buy a home, you pay a point -- let's use an example. A $300,000 home, you pay one point for that loan. That's $3,000.
Now, you usually are going to have to take that deduction over the life of the mortgage. But when you refinance, you are able to take all of that deduction that you haven't yet used and take it that year. So if you refinance this year, you may be able to go back and get the full credit for that one point, which could again be thousands of dollars back in your pocket.
O'BRIEN: I was surprised to read that moving expenses -- really any move? I mean, are there any kind of limitations?
BACH: There is. If you move over 50 miles for a job...
O'BRIEN: It has to be for a job.
BACH: Over 50 miles for a job, you can write that off. Well, guess what? One in five Americans apparently move every year. So a lot people who moved this year for a job, can write that off.
O'BRIEN: What qualifies as a moving expense?
BACH: That would be the people who show up with the truck and put your stuff in a truck, for example, and move that for you.
O'BRIEN: So all of that goes.
BACH: Yes. And that can be over $1,000.
O'BRIEN: Wow, at least $1,000. More than that when I moved from California out to New York.
Penalty fees on investments. What specifically are you talking about?
BACH: I really like this one. Let's say you go and you buy a CD at a bank. Well, most certificates of deposits, if you buy a five- year CD and you sell that CD early, there's a penalty fee. That penalty fee is actually an itemized deduction, provided you take it. So again, if you buy an investment and there's a cost to sell that investment, you can actually take that as an itemized deduction against your taxes, putting potentially, again, at least $100 back in your pocket, but maybe thousands if you had a big CD.
O'BRIEN: Weight loss programs are deductible. Are these any weight loss -- Atkins, Jenny Craig, all those?
BACH: It depends. If a doctor says that you need to lose weight, puts that in writing, recommends that you go on an Atkins program or a Weight Watchers program, guess what? That's an itemized deduction.
O'BRIEN: So everything you spend in that program, the food, the meetings, all that stuff?
BACH: Yes. Now, that's the thing that surprised me, that the foods -- I don't want to call it lotions and potions, but all the shakes that people are running around making now, and the vitamins, provided a doctor recommends you go off and lose weight for health reasons, the government says, yes, that is an itemized deduction. Because they want Americans to be healthier.
O'BRIEN: This one, deductions for having a baby. What actually is covered? Because I think...
BACH: You like this one, right?
O'BRIEN: Well, maybe. Because it looks like if you are taking birth and child prep courses, which I'm not going to do...
BACH: You're not going to take another one of these classes? I just took this class. We have a 6-month-old.
So I had to learn to diaper a doll, right? So we went and took one of these classes. That class cost like $700 to go for a whole day to learn...
O'BRIEN: You were ripped off. I would have taught you that for 20 bucks.
BACH: Well, but they teach you a lot in these childbirth classes. And I think it's mostly for the fathers, quite frankly. But that's an itemized deduction. I found that fascinating.
O'BRIEN: David Bach, as always, nice to see you. Thank you so much.
BACH: Good to see you. Thank you.
O'BRIEN: David Bach, of course, is America Online's money coach. The AOL keyword is David Bach.
And you can get more information at finishrich.com as well. David will join us every Wednesday right here on AMERICAN MORNING for some tips on how to improve your financial life -- Bill.
HEMMER: Looking forward to it.
Thanks, Soledad.
The opening bell is just about three minutes away as well.
Also, should 14-year-olds be allowed to vote? Two lawmakers in California talk about a debate about a proposal that could change the whole election process. We'll get to that right after this on AMERICAN MORNING.
(COMMERCIAL BREAK)
(STOCK MARKET REPORT)
Lawsuits>
Aired March 10, 2004 - 9:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Good morning. Senator John Kerry's campaign continues to surge; four more primary wins yesterday. Today, he's making a move to solidify the Democratic party.
One person, one quarter of a vote? A plan at California aimed at getting young people interested in the political process.
And a brutal sucker punch puts one hockey player in the hospital, another under a criminal investigation.
Ahead this hour, here on AMERICAN MORNING.
ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.
SOLEDAD O'BRIEN, CNN ANCHOR: Good morning. Welcome back, everybody.
Other stories we're following this morning, the election eight months away. No need to panic. Or is there? President Bush's approval rating has fallen a fairly long way. We're going to get into the things that the President is doing and needs to do, also, to retake the lead in the campaign.
HEMMER: Also, if you haven't done your taxes just yet, that's a good thing today. We're talking about a number of deductions you may not know about. A good chance some may apply to you, and you'll hear them this hour here on AMERICAN MORNING.
O'BRIEN: Mr. Cafferty, good morning.
JACK CAFFERTY, CNN ANCHOR: How you doing? We've got government -- Centers for Disease Control predicting that by as earlier as next year the biggest cause of preventable death in this country will be obesity. Not tobacco, not alcohol, fat people. We'll take some of your e-mails on who is responsible for that.
Scary thing; 400,00 people here...
HEMMER: Obesity is tied to every major disease...
O'BRIEN: Right.
CAFFERTY: Yes, cancer, heart disease and diabetes the three biggest offenders, sure.
O'BRIEN: All right. Let's get to our top stories, though, first.
Six suspects being questioned in Iraq in connection with a deadly attack that killed three civilian workers, including two Americans. The incident took place in Karbala last night. Iraqi police said five of the suspected attackers were dressed in Iraqi police uniforms. It's not clear, though, if they were really members of the Iraqi police force.
Israeli and Palestinian leaders are expected to meet next week for the first time in eight months. Israeli Prime Minister Ariel Sharon and his Palestinian counterpart, Ahmad Quray, had planned to meet before, but talks were delayed several times. Israelis sources say that the summit has been tentatively set for next Tuesday.
Reports now of more violence there, though. Palestinian sources say that four members of the Al Aqsa Martyrs Brigrades were killed in a raid by Israeli troops in Jenine.
In Chesapeake, Virginia, formal sentencing set today for convicted teenage sniper Lee Malvo. The judge is required to follow a jury's recommendation to sentence Malvo to life in prison without parole. Malvo was convicted of capital murder in the shooting death of FBI analyst Linda Franklin. She was one of 10 people killed during the October 2002 sniper attacks. Got more on the sentencing coming up in just a few minutes.
In health news, coffee might actually protect you from diabetes. Researchers in Finland say women who drank three to four cups a day lowered their risk of getting adult-onset diabetes by 29 percent. The men lowered their risk by 27 percent. The reason for the apparent health benefit remains unclear, but according to the study, the benefit increased with consumption.
And in Britain, claims of doggy doping are swirling around the world famous Crufts Dog Show. According to British newspaper reports, the target of the saboteurs was a prized Doberman named Kerry (ph). They dogs owners claim that Kerry (ph) was given meat laced with a sedative before she entered the ring, and they were forced to pull her out of the competition. Britain's Kennel Club says an investigation is now under way.
HEMMER: Anything for victory.
O'BRIEN: That's a cutthroat business there, obviously there, huh?
(WEATHER REPORT)
HEMMER: Let's start with politics. Old political rivals meet today in Washington, when Senator John Kerry and Howard Dean get together. Aides say it is only a chance for the two of them to know and like each other yet again.
Senator Kerry is fresh off a sweep of primaries in four southern states. Results yesterday never really in doubt. Senator Kerry will mathematically become the Democratic presidential nominee in coming days. They'll go in Illinois next week. And yesterday, he took aim at a Bush campaign message saying the president's "stubborn leadership has steadily led America in the wrong direction."
The president touting his economic agenda today in Ohio, which has an unemployment rate well above the national average. We're told Mr. Bush will address the outsourcing of American jobs while arguing against what he calls Democratic tax and spending plans.
Meanwhile, the Bush campaign today filing a complaint with the FEC, the Federal Election Commission, saying it seeks to have a $5 million anti-Bush ad campaign pulled from the air. The Bush campaign says the ad, which is from a group back by Senator Kerry's former campaign manager, violates New campaign finance laws because it paid for the ads with soft money contributions.
More on this now with our political analyst, Carlos Watson, up early today in Mountain View, California.
Carlos, good morning to you.
CARLOS WATSON, CNN POLITICAL ANALYST: Bill, good morning.
HEMMER: Nice to have you. Talk about the Democratic dollars in the ads. Does the White House have a case on this matter?
WATSON: We won't know for a little while. I think the reality is, by the time we figure out, the dollars will probably be spent. And Bill, what's interesting to me is these are just a couple million of what I expect will be north of $100 million that some of these groups hope to spend over the next months.
HEMMER: So if you go ahead and spend it, and you do the ads and you come back and say it's wrong, is there a penalty after that or not?
WATSON: There's a penalty. But, more importantly, there could be a penalty for the president in terms of his approval numbers. Right now, as you know, he's behind in most polls. And realistically, now is the time for him to catch up, not during the summer when many voters may stop paying attention for a while.
HEMMER: You mentioned the poll numbers. This was out -- CNN-USA Today-Gallup -- 52 to 44, favoring Senator Kerry. Is this what happens with an incumbent in the White House?
WATSON: Actually, it's unusual. You have to go back to 1976, when Gerald Ford was the incumbent running against Jimmy Carter, when at this point, in March and April, an incumbent is actually behind. Ronald Reagan and Bill Clinton, both of whom won re-election, were ahead at this point. In fact, Bill Clinton had increased his lead from four points in January against Bob Dole, the presumptive challenger, to 14 points at this point.
And so not only is the president behind and not only is that unusual, but the fact is that the numbers have gotten worse over the last two or three months. He's gone from some 12 points up in a hypothetical match-up against John Kerry to, as you said, some eight points down. Significant swing; a lot to worry about.
HEMMER: Two areas where apparently there is concern, women and the economy. What are you finding out about that?
WATSON: There's been a gender gap for a while between Democrats and Republicans. Democrats usually doing better among women. Al Gore won among women by six points. Lost to George Bush by nine points among men, and still ended up wit's majority of the vote.
George Bush is now behind by double digits in most of these polls among women. And, in fact, his lead among men has shrunk in half from about 18 points to about nine points over the last two polls. So real worry about the support among women. And obviously, on the economy, that's where the president is getting some of his lowest numbers.
Maybe the two most important things on the economy, Bill, are that, one, 68 percent of swing voters are saying they don't think the president is doing enough. So it's not just the numbers out there, but the perception of whether or not the president is doing enough.
HEMMER: Which explains -- I don't mean to cut you off there -- which explains why the message is going out today in this economic speech. With Senator Kerry, you talk about a Dean syndrome. Explain that for us.
WATSON: Well, you know, Howard Dean was important in setting the tone for this party and being -- as they said, he wanted to drive the party away from being Bush-lite, much more populous, much more aggressive rhetoric. And the fact that he's coming back, perhaps, ultimately into the Kerry camp, can only mean another significant boost. Now is the real time for the president to sharpen his message not only to run the television ads, but to begin, as I said before, with telephone calls, with -- and with local organizing lots of states to try to move the numbers in some of these battleground states.
HEMMER: Thanks, Carlos. Good to see you there in California.
WATSON: Good to see you. Have a good one.
HEMMER: OK.
HEMMER: Soledad?
O'BRIEN: An all-star from the Vancouver Canucks will meet with Nation Hockey League officials today after a horrific on-ice incident. The Canucks' Todd Bertuzzi sucker punched Colorado's Steve Moore on Monday night. Ouch.
Moore landed face-first on the ice; Bertuzzi on top of him. Moore suffered a broken neck, a concussion, and also deep cuts on his face. He's now hospitalized in Vancouver.
Bertuzzi's been suspended indefinitely. And Vancouver police are now investigating.
HEMMER: That is just a brutal shot. You watch that thing over and over. Look at that. Wow. The second time in four years they're going to have a police investigation actually in Vancouver from a hockey game.
O'BRIEN: Do we know anything about Moore's prognosis? I mean, a broken neck, obviously serious.
HEMMER: Yes. I was reading something earlier. I haven't seen anything updated, obviously.
It's early out there on the West Coast. He's still in Vancouver. So best to his health. Get better soon.
In a moment here, obesity quickly becoming the number one preventable killer in America. We'll look at the disturbing trend in a moment, and what they're saying in D.C. about it.
O'BRIEN: Also, don't send your return to the IRS just yet. You might actually be overpaying your taxes. We've got some tips about deductions you might have missed.
HEMMER: Also, George Foreman could be trading in cooking mitts for the boxing gloves. Is that so? We'll ask him live here on AMERICAN MORNING this hour.
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HEMMER: Obesity is a problem in America. But are fast-food restaurants to blame for that problem? Some people say yes, and one group even took that case to the court. Today, the House may pass a bill that would ban such lawsuits.
Joe Johns is live on Capitol Hill for more on this.
Joe, good morning.
JOE JOHNS, CNN CONGRESSIONAL CORRESPONDENT: Good morning, Bill. Backers of this measure say they are taking a stand against frivolous lawsuits, but the critics say it's not the lawsuits that are frivolous, it's the legislation.
(BEGIN VIDEOTAPE)
JOHNS (voice-over): Billions and billions served, but whose fault is it if you eat too many and get fat? Washington lawyer John Banzhaf blames the fast-food restaurant.
JOHN BANZHAF, LAW PROFESSOR, GEORGE WASHINGTON UNIVERSITY: John Banzhaf and many other lawyers want to sue fast-food companies for their fair share of obesity, which costs Americans $117 billion a year, most of which is paid by non-obese taxpayers.
JOHNS: Banzhaf, who spearhead the lawsuits against the tobacco industry, says the threat of similar lawsuits against fast-food restaurants will force them to serve healthier food. But the bill before the House would remove that threat by eliminating the right of consumers to sue if they gain weight. REP. RIC KELLER (R), FLORIDA: We've got to get back to those old-fashioned principles of personal responsibility and common sense, and get away from this new culture where everyone plays the victim and blames other people for their problem.
JOHNS: States are also moving to protect the fast-food industry from civil lawsuits. At least 19 have such proposals as of March 1. Louisiana actually enacted a law. Despite all the attention, there's no epidemic of litigation.
A high-profile case against McDonald's was dismissed. Of a handful of other cases, none has been successful. The industry says its insurance rates will go up if Congress doesn't act. Some argue a well-heeled interest group is trying to get around the courts.
REP. BOBBY SCOTT (D), VIRGINIA: We ought not have special privileges for the politically powerful. Cases are to be tried in court.
(END VIDEOTAPE)
JOHNS: Now, this is an election year, and limiting liability is a key issue for congressional Republicans, even if this bill passes the House. There's no way to tell whether it will pass the Senate.
Bill, back to you.
O'BRIEN: Joe, thanks. Joe Johns on Capitol Hill -- Soledad.
O'BRIEN: Well, no matter who is to blame, the reality is that obesity could soon overtake smoking as the country's number one preventable killer. That's according to the federal government, which has launched an ad campaign to try to get folks to trim down.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Check it out, man.
UNIDENTIFIED MALE: What is that?
UNIDENTIFIED MALE: It looks like someone's belly. Eh, probably lost it walking on the beach.
UNIDENTIFIED MALE: Just leave it. Let's go.
(END VIDEO CLIP)
O'BRIEN: Joining us this morning, Dr. James Young. He's a cardiologist. Also chairman of the Division of Medicine at the Cleveland Clinic Foundation.
Nice to see you again, sir. Thanks for being with us.
DR. JAMES YOUNG, CHAIRMAN, DIVISION OF MEDICINE, CLEVELAND CLINIC FOUNDATION: Thank you very much. O'BRIEN: Let's talk a little bit about this study. They found that poor diet and physical inactivity caused 400,000 deaths in 2000. And also, that obesity is catching up, as we mentioned, to tobacco as the leading cause of preventable death.
How shocked are you by the results of this study?
YOUNG: Well, Soledad, I'm not very surprised at all. We've seen this coming. The prevalence in the United States of obesity went from about 10 or 12 percent in 1990 all the way up to 21 percent in 2001. And is probably pushing 25 percent right now.
That's a huge increase. It's a huge problem. No pun intended there. But it's a big issue.
O'BRIEN: And the big issue, of course, the biggest part of the problem is that it's a trend that's going the wrong direction. So how do you reverse that trend? Did you think ads like the one we just showed are a step in the right direction? Do they actually work?
YOUNG: Absolutely. I think public education is critical here, and I think we need to do three things. Number one, hit our youth. Talk to them; teach them about the problems, much as we're doing with cigarette smoking, for example.
Number two, I think we need to urge physical activity in our schools more so. And number three, we need to attack the problem in our adults so that we can get people to trim down and cut their risk of major cardiovascular events.
O'BRIEN: But as you are well aware, people have never been fatter, and never more before are they more into diets and count calories and know more about fat content and carb content. So, to some degree, the more knowledge you get, doesn't necessarily mean you're going to be healthier.
YOUNG: Well, perhaps. But at least it can give people some tools to try to work with. And I personally think that all the attention being paid to this issue will, in the end, pay off.
O'BRIEN: At the end of the day, what do you blame? Do you think that people who are obese don't understand the health implications for the extra weight that they are carrying? Do you think that society has just changed so much in the last 10, 20 years that, frankly, there are just these pressures on people that force them to be fatter?
YOUNG: It's a terrible sociologic problem, and I think people don't realize the cost that they pay with physical inactivity, poor nutrition habits and gaining weight. And I think if we get back to some basics, get back to basic education and encouraging a healthy lifestyle, particularly a lifestyle with exercise and wise eating, despite the diet controversies that are out there, that's going to help.
O'BRIEN: Dr. James Young from the Cleveland Clinic Foundation. Nice to see you, sir. Thanks for being with us. YOUNG: Thank you.
HEMMER: Could be the story of the day. It is our "Question of the Day," Jack.
CAFFERTY: Indeed it is. And viewers have some interesting ideas on that question, who is responsible for fixing America's weight problem?
Rhonda in Ubly, Michigan, has her finger right on a big piece of the answer. She writes this: "I'm the mother of three girls ages 8, 7 and 3. It's pretty hard to compete with Scooby Doo and Dora the Explorer pimping their sugar treats on TV. How about having characters advertising for carrots for a change? And by the way, where are the good-for--you food commercials?"
Very big piece of the action there. Kids watch a ton of television. Yeah, what?
O'BRIEN: Just say no.
CAFFERTY: You mean don't let them watch TV?
O'BRIEN: No. Just don't let them eat the stuff. Say, no, you can't eat the Dora the Explorer cereal, no. Sorry, Rhonda.
CAFFERTY: All right, Rhonda. That should handle your question. Now we'll go to the next one.
O'BRIEN: I solved that one. Go on.
CAFFERTY: Mike in Hopatcong, New Jersey: "Think of this as group therapy here. When people get their stomachs stapled, what do they find? That if they eat less, they lose weight. Duh."
Peter in New Windsor, New York: "Let me get this straight. The government spent 40 years criminalizing smokers. They quit and they gain weight. Now we're stuck with bigger health bills than ever before and a myriad of obesity related diseases. The lesson learned? Government ought to stay out of telling people what to do when it comes to their health."
Ken in Kingston, Nova Scotia: "Putting the government on the hook for teaching our kids about nutrition is a parents' cop-out. We all know kids will acquire tastes for foods that we introduce them to at dinnertime in our own homes."
And Christopher in Burlington, Vermont: "Fix the problem at its source: the delusionally soothing and recurrent theme that peace, happiness and contentment can be found within special sauce and a nearby deep fryer."
I'm going to go get a burger.
O'BRIEN: You know, we were talking about that.
HEMMER: Supersize that bad boy.
CAFFERTY: There are a lot of subliminal messages, though, that deal right to that very concept. But, you know -- so.
O'BRIEN: Have we solved this problem yet this morning?
HEMMER: Not yet. We have 40 minutes left.
CAFFERTY: Well, you took care of that lady in Michigan.
O'BRIEN: Well, you know, I know how hard that is. But I just -- but not that I'm good at it, but my parents were great at it. No, no, no, no.
CAFFERTY: Rhonda, lock your kids in a room and feed them lettuce.
O'BRIEN: That's not what I'm saying. Stop. I'm saying my parents said no a lot.
CAFFERTY: You know the other thing? When I was a kid, which is -- you weren't even here then. In the schools, you went to health class a couple of days a week, and three days a week you went to PE, Physical Education.
O'BRIEN: Right.
CAFFERTY: And then PE, you had to do push-ups and sit-ups and you had to run laps and you had to climb ropes. And you had to do it, and you had to do it to the satisfaction of the teacher, or you didn't pass. And if you didn't pass, you didn't get promoted and you didn't graduate. None of that stuff exists anymore.
HEMMER: Just eat lettuce.
CAFFERTY: Yes.
O'BRIEN: Lock yourself in a room and eat lettuce.
Still to come this morning, five weeks until tax day. There's a good chance you'll be overpaying this year. We're going to be telling you how you can prevent that when AMERICAN MORNING continues.
(COMMERCIAL BREAK)
O'BRIEN: With the mother of all deadlines April 15, a little more than a month away, many taxpayers are feeling a little tense. Well, this morning, our weekly "90-Second Tip" series, we're going to try to relieve some of that tension and also ease your tax burden at the same time.
David Bach is our personal finance contributor, also our tax masseuse.
DAVID BACH, PERSONAL FINANCE CONTRIBUTOR: Tax masseuse? I like that. (CROSSTALK)
O'BRIEN: You're here to talk about some deductions that often are overlooked. I guess the General Accounting Office says something like $950 million overpaid by American taxpayers?
BACH: Incredible.
O'BRIEN: Is it because people are having too much money withheld or why?
BACH: The government is actually telling Americans that they should be itemizing their tax deductions. Many Americans don't itemize their tax deductions. And what that means is you are losing out on free money.
An example would be this: if you earn $50,000 a year, and you had $10,000 in itemized deductions, that could put potentially $3,000 to $4,000 back in your pocket. And that's more money than most Americans save. So again, these tax deductions at the end of the year are just critical.
O'BRIEN: Let's talk a little bit about what exactly a deduction is. I mean, I know what a deduction is, but what sorts of things are deductible, and what sorts of things are completely not deductible, speaking generally?
BACH: It is unbelievable how much is deductible. I mean, we're going to show this book here in a second.
Almost -- I don't want to say everything is deductible, but a lot of things are deductible. And I mean, we're going beyond things like, for instance, giving money to charity. I mean, let's go through the five right now. We've got five simple things most people would never think about that are itemized deductions that can put thousands of dollars back in your pocket right now.
O'BRIEN: All right. And let's get through them. The first thing you say is the points that you pay to refinance your home...
BACH: And this is something that people don't realize. When you buy a home, you pay a point -- let's use an example. A $300,000 home, you pay one point for that loan. That's $3,000.
Now, you usually are going to have to take that deduction over the life of the mortgage. But when you refinance, you are able to take all of that deduction that you haven't yet used and take it that year. So if you refinance this year, you may be able to go back and get the full credit for that one point, which could again be thousands of dollars back in your pocket.
O'BRIEN: I was surprised to read that moving expenses -- really any move? I mean, are there any kind of limitations?
BACH: There is. If you move over 50 miles for a job...
O'BRIEN: It has to be for a job.
BACH: Over 50 miles for a job, you can write that off. Well, guess what? One in five Americans apparently move every year. So a lot people who moved this year for a job, can write that off.
O'BRIEN: What qualifies as a moving expense?
BACH: That would be the people who show up with the truck and put your stuff in a truck, for example, and move that for you.
O'BRIEN: So all of that goes.
BACH: Yes. And that can be over $1,000.
O'BRIEN: Wow, at least $1,000. More than that when I moved from California out to New York.
Penalty fees on investments. What specifically are you talking about?
BACH: I really like this one. Let's say you go and you buy a CD at a bank. Well, most certificates of deposits, if you buy a five- year CD and you sell that CD early, there's a penalty fee. That penalty fee is actually an itemized deduction, provided you take it. So again, if you buy an investment and there's a cost to sell that investment, you can actually take that as an itemized deduction against your taxes, putting potentially, again, at least $100 back in your pocket, but maybe thousands if you had a big CD.
O'BRIEN: Weight loss programs are deductible. Are these any weight loss -- Atkins, Jenny Craig, all those?
BACH: It depends. If a doctor says that you need to lose weight, puts that in writing, recommends that you go on an Atkins program or a Weight Watchers program, guess what? That's an itemized deduction.
O'BRIEN: So everything you spend in that program, the food, the meetings, all that stuff?
BACH: Yes. Now, that's the thing that surprised me, that the foods -- I don't want to call it lotions and potions, but all the shakes that people are running around making now, and the vitamins, provided a doctor recommends you go off and lose weight for health reasons, the government says, yes, that is an itemized deduction. Because they want Americans to be healthier.
O'BRIEN: This one, deductions for having a baby. What actually is covered? Because I think...
BACH: You like this one, right?
O'BRIEN: Well, maybe. Because it looks like if you are taking birth and child prep courses, which I'm not going to do...
BACH: You're not going to take another one of these classes? I just took this class. We have a 6-month-old.
So I had to learn to diaper a doll, right? So we went and took one of these classes. That class cost like $700 to go for a whole day to learn...
O'BRIEN: You were ripped off. I would have taught you that for 20 bucks.
BACH: Well, but they teach you a lot in these childbirth classes. And I think it's mostly for the fathers, quite frankly. But that's an itemized deduction. I found that fascinating.
O'BRIEN: David Bach, as always, nice to see you. Thank you so much.
BACH: Good to see you. Thank you.
O'BRIEN: David Bach, of course, is America Online's money coach. The AOL keyword is David Bach.
And you can get more information at finishrich.com as well. David will join us every Wednesday right here on AMERICAN MORNING for some tips on how to improve your financial life -- Bill.
HEMMER: Looking forward to it.
Thanks, Soledad.
The opening bell is just about three minutes away as well.
Also, should 14-year-olds be allowed to vote? Two lawmakers in California talk about a debate about a proposal that could change the whole election process. We'll get to that right after this on AMERICAN MORNING.
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