Return to Transcripts main page

American Morning

Widespread Fighting in Iraq; Interview With Senator Carl Levin

Aired April 07, 2004 - 07:30   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: In a matter of moments here, Heidi, we're going back to Iraq on this story; also the Pentagon and Barbara Starr. A lot to talk about yet again today.
And Senator Carl Levin, a Democrat, Armed Services Committee, out of Michigan, talking about that June 30 deadline, whether that's a workable goal, whether that's a military decision, or a political decision, or both. So, Carl Levin standing by in D.C. In a moment here, his thoughts.

HEIDI COLLINS, CNN ANCHOR: Also, millions of you still haven't done your taxes yet. And even if you have, you'll probably be interested to know what common mistakes can lead to an audit. Our personal finance coach, David Bach, is back today with "90-Second Tips." He'll tell you what not to do at tax time.

HEMMER: And good advice.

(CROSSTALK)

COLLINS: How to avoid an audit.

HEMMER: That's right.

COLLINS: To the news now this morning. As you know, more attacks against U.S. troops in Iraq. Two U.S. Marines were injured outside of Fallujah today. Insurgents attacked a tank with rocket- propelled grenades. Witnesses say new fighting has erupted in Ramadi. As many as a dozen Marines were killed there yesterday. We'll go live to the Pentagon for more on that in just a moment.

Other news now. The only person convicted in connection with the September 11 terror attacks in being released, for now. Motassadeq was found guilty last year of aiding a Hamburg al Qaeda cell. A federal appeals court overturned the verdict last month. His lawyers now say Motassadeq is being freed until a retrial expected to begin in June.

A somber ceremony in Rwanda. They are marking 10 years since Hutu extremists began a killing rampage there. Leaders from African nations and dignitaries throughout the world gathered to observe three minutes of silence for the 1994 genocide. Nearly a million people were murdered in 100 days.

The infamous juror No. 4 in the Tyco trial reportedly says she would have voted to acquit on all counts. According to today's "New York Times" Ruth Jordan says the trial would have ended with a hung jury. The judge declared a mistrial after Jordan received a threatening letter, after she allegedly made a hand gesture. Jordan denies making the OK hand sign to defense lawyers in the courtroom.

And an Ohio woman who claimed she bought, then lost, a winning $162 million lottery ticket is actually going to be losing some dough. Alisha Battle (ph) is being fined $1,000. She was found guilty of filing a false police report. The judge also ordered the 41-year-old to perform 50 hours of community service. Battle (ph) also had to shell out more than five grand in restitution for police overtime after the case drew national attention.

HEMMER: It's a costly prevarication, would you say?

COLLINS: Prevarication indeed.

(WEATHER BREAK)

HEMMER: Tough talk out of Baghdad already today. A top U.S. general there vows to -- quote -- "destroy that private militia" that is linked to that radical Shiite Muslim cleric, Muqtada Al-Sadr.

Brigadier General Mark Kimmitt speaking earlier today about U.S. and coalition forces battling with the insurgents in a number of cities across Iraq. While U.S. forces have taken significant casualties over the past day, Iraqi losses are said to be significantly higher than the U.S. side.

To the Pentagon and Barbara Starr.

How much concern is there in D.C. about this now? Barbara -- good morning.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning to you, Bill.

Well, Iraq is certainly front and center now on the Bush administration's agenda. Last night, the president held a secure conference call with his top advisers -- Secretary of Defense Rumsfeld, General Richard Myers, chairman of the joint chiefs, Condoleezza Rice, national security adviser, and his chief of staff, Andy Card -- discussing the situation. We are told the president was updated on all of the U.S. military offensive operations now going on across Iraq.

There will be another conference call today. General John Abizaid will participate. They will look at it. We are told the president is, of course, obviously taking this very seriously. But everything is being considered in a calm, orderly fashion.

Secretary Rumsfeld is said to be considering this. The test of wills that was expected between the insurgents and the coalition as they counted down towards that June 30 transition date. But a top official saying here, our test of wills is stronger, and that the coalition will succeed.

HEMMER: (UNINTELLIGIBLE) just emphasized that point on this troop rotation. There are suggestions now that many thousands may be staying longer than before, as you have pointed out. Where is the debate today on whether more U.S. forces are needed in Iraq?

STARR: Right. Now, we are told so far General Abizaid has not asked for any change in the troop disposition there, that it is too soon. But here's the calculation they're looking at. We are told right now about 135,000 troops in Iraq. And, of course, only some percentage of them are combat troops. The rest are support. Under the current rotation plan, that 135,000 will go down to about 115,000 troops by June.

So, the question they will deal with is whether or not they can keep that rotation schedule, or do they need to make some adjustment to keep the troop level higher, given the number of hot spots that continue to flair up and the need to continue to deal with those.

At the same time, they are also looking at what so-called quick reaction forces they may have in the region that they can tap into and bring in if they need; again, to deal with these new requirements, if you will -- the requirement being these hot spots that are continuing to flair up that they are having to deal with.

HEMMER: Barbara, thanks, from the Pentagon there.

And amid the latest violence that we're talking about today, debate continues about whether power can be transferred from the U.S. to the Iraqis by that deadline, the 30th of June.

Senator Carl Levin, a Democrat on the Senate Armed Services Committee and a key member of the Intelligence Committee, is our guest this hour, live in D.C.

Senator, Welcome back to AMERICAN MORNING. Good to have you here.

SEN. CARL LEVIN (D), MICHIGAN: Good morning.

HEMMER: You have said that June 30 date now has a -- quote -- "life of its own." What do you mean by that, Senator?

LEVIN: Well, it was a date which was set arbitrarily, and now it has great meaning to the people of Iraq. And to move away from it would create some real difficulty, because, obviously, everybody is interested in a transfer of sovereignty back to the Iraqis.

The problem is that we could have even greater difficulty if we move up to that date, if we are inflexible about it, and if there's no entity in Iraq to whom we can transfer sovereignty that has the support of the people of Iraq. We don't know that such an entity can be fashioned by that date, and therefore we ought to be more flexible about it.

And most importantly, we ought to seek the support and advice of the international community relative to that date. It was set without the involvement of the international community or the U.N. It was set unilaterally by us, and we should not repeat the unilateral mistake that we made before the war in not understanding the importance of having the international community with us on such an important decision as setting a date for the transition of sovereignty back to an Iraqi entity.

HEMMER: Senator, you touched on it. I'd like to delve just a bit deeper. How do you come down on the argument the White House says that the military says in Iraq, all of the reports we're getting out of there say the Iraqis say that would be essentially a step backwards for them. Your response to that.

LEVIN: If that's what the view of the Iraqis is, then so be it. Then we should maintain that date. But I think we should involve the leadership of the various entities in Iraq in this matter and at least be flexible and say that if the leadership of, if all of the Iraqi factions want that to be transferred, and if there's an entity to whom we can transfer it, fine. Then let's transfer it.

But we should not unilaterally set a date and then be inflexible about it, because it's very possible that as that date comes forward, that there is not going to be a consensus about transferring sovereignty because there's no entity to whom to transfer sovereignty to.

But most importantly, we should not repeat the mistake that we made before going into this war of not having the support of the international community. The U.N. should be involved in this decision relative to the transfer as to what the entity will be and as to what the date will be.

HEMMER: If you're going to move it, where do you move it?

LEVIN: It depends on the circumstances that exist when the time comes. But we cannot unilaterally make these decisions. We cannot just arbitrarily and unilaterally say it's going to be June 30.

If we really want the international community there with us to make these very tough political decisions, then we've got to reach out to them and say, hey, do you agree with us that we ought to set that date arbitrarily? I don't see that reaching out to the international community and making them true partners. What I see is just us making decisions on our own, and then saying to the U.N., hey, come on in now and try to help us. That's not the way to have a true partnership.

HEMMER: Senator, is this mostly symbolic? If we're going to have 100,000 troops there on the ground, maybe more come handover date...

LEVIN: There's a lot of symbolism -- I'm sorry. There's a lot of symbolism in it, obviously, but it's much, much more than that. And symbols have some major consequences on the ground. There's a lot of symbolism that is driving people right now to violence in Iraq. So symbols count.

HEMMER: Thank you, Senator Carl Levin, a Democrat from Michigan there in D.C. Appreciate your time. Thank you, sir. COLLINS: Of course, we are going to be keeping our eye on the situation there, the still developing situation that is in Iraq this morning. Escalating violence as U.S. forces vow to crush a rebel army. We're going to have a live report from Baghdad coming up in the next hour.

HEMMER: Also, on a much different topic, but pretty appropriate, too. 90-second tax tips today. Simple steps that could help you avoid that audit. David Bach has those tips in a moment.

COLLINS: Plus, UConn's twin victories in the NCAAP. Highlights as UConn's women take the championship. Stay with us on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: All right. You have just about a week left before you file that tax return, but do not rush. That is one piece of advice on how to avoid mistakes this year.

Our resident personal finance contributor, David Bach, author of "The Automatic Millionaire," here with some tax tips today.

Good morning, David. Nice to have you here.

DAVID BACH, CNN PERSONAL FINANCE CONTRIBUTOR: Good morning, Bill. Good to be here.

HEMMER: Listen, you say when in a rush, keep it simple. Easier said than done come April 15. But looking at some of these tips -- and we can put them on the screen -- some of these seem very basic, very rudimentary.

BACH: Unbelievably simple. This is coming right from the IRS. We asked the IRS: What are the single biggest mistake people make? Are you ready for this? They can't read our handwriting. They said, David, tell everyone to use the stickers, the labels that you get in the mail. Even if the address is wrong, just cross out the address and update it. But at least we can read your name. If you write this out, please, they said, tell everybody to use their best penmanship, because if we can't read your name or your social security number, we're going to have a problem.

Now, also, make sure if you've got kids that you put their social security numbers down. That's very important, especially if you want the child credit.

And then finally, double check the math. Now, again, this is the stuff they teach you back in eighth grade, but put a bracket around minus signs. Don't just put them a minus sign. They want a bracket on your tax returns.

HEMMER: All right, that was the first screen, but there's another screen.

BACH: Yes. HEMMER: And, again, these are pretty basic. Only check one filing status. Sign and date returns. Do people forget that?

BACH: Believe it or not, they do. And believe it or not, is there are a lot of people who will put single and jointly on the same tax return. You can't do both. And also, they added on this list, make sure that you make a copy of your tax returns.

And this is really my last tip here. Not only make a copy, but send it through the U.S. Post Office. Get it certified and get them to get a signature return card, so that means that the IRS will actually sign that they received your tax return, and they'll mail that back to you. You take that. You staple it to the copy of your tax return. Put that in a file. Now, you've got proof that you mailed it to them and you've got proof that they received it.

HEMMER: And you can back it up. Always great advice there.

Filing is one thing, but paying is another. Your advice there?

BACH: Right. Well guess what? They don't want you to make the check out to the IRS, and people do. It's the United States Treasury. Remember, everybody, United States Treasury.

Also, believe it or not, people forget to sign their checks. Sign the check. Now, they want four things on your check. They want not only your name and your signature, but they want to know what filing form did you use? What year are you paying? They want your social security number. All of that right they want it right on the front of your check.

Now, that kind of makes me nervous. That's a lot of personal information. But the IRS' point is these checks get separated from your tax returns, and sometimes they get the check and they don't know what it's for. So, if it's got all of that on the front of the check, it makes their job easy, and that means that you get your money back faster.

HEMMER: Also when paying, credit card. Good advice or not to use that?

BACH: Well, this is a new technology. Now, I'm against it, but you can go to a Web site, which I believe we've got up here on the cairones (ph), www, I believe it's pay1040.com. The problem is if you pay your taxes on a credit card, there's a cost -- 2.49 percent. Make it simple, 2.5 percent. So, on $1,000, it's going to cost you $25 in a servicing fee to use a credit card. Plus, then if you keep that debt on your credit card and you've got an interest rate of 20 percent, well, that's a bad deal.

HEMMER: Well, listen, if you say it, I believe it, too.

To repeat your mantra, for people to get the refund quickly and the retirement accounts as well, talking about that, quickly on the screen some of the amounts for people to remember. Take a look at some of these. BACH: Yes.

HEMMER: And as we look at these, David...

BACH: It's not too late.

HEMMER: I also want to talk about what you point out, that certain people need to make withdrawals from their retirement accounts. To whom does that apply?

BACH: OK, again, $3,000 per person. If you're over 50, you can still put $3,500 away up to the date of April 15. SEP IRAs, you've got $40,000 you can put away, up to 25 percent. Don't forget the spousal IRA. If you're working and you've got a 401(k) plan and your spouse doesn't work, under the age of 50, there's still the opportunity to put $3,000 in an IRA account, a straight tax deduction. Over the age of 50, again, for the spouse, $3,500.

The last thing. If you are 70 years old, you've got to start pulling money out of your IRA account. So, at 70 and a half, the IRS says roughly 5 percent of the money in your IRA account has to come out. If you don't do this, the penalty is 50 percent of what you are not withdrawing.

HEMMER: Wow!

BACH: So, if you've got parents who are older, make sure you check with them and say, hey, are you taking the withdrawals that are required out of your IRA account?

The last thing I'll tell you on that note, it's combining all of your IRA accounts. So, it doesn't have to come out of every single IRA. It's the combined total.

HEMMER: Last comment. If you could give any bit of advice in this final week for last-minute filing, what is it?

BACH: Well, the IRS tell us it's to itemize your tax deductions, because that's how you're going to get more money back. Go to the IRS Web site. Go to www.irs.gov.

I believe this. I believe this is true.

HEMMER: Yes.

BACH: If you spent 30 minutes at this Web site, you would find tips that the IRS is giving you that would put money back in your pocket. Even if you used a CPA, because I'm promising you, there are things on this Web site that the IRS will tell you that your CPA is not looking at.

HEMMER: IRS.gov?

BACH: IRS.gov.

HEMMER: That's the Web site. Thank you, David. Good to see you. David Bach...

BACH: Thank you.

HEMMER: David Bach is host, by the way, of a nationally- syndicated radio show which airs Saturday afternoons on Ciria (ph) satellite. And every Wednesday, including this Wednesday, catch David right here on AMERICAN MORNING with more tips on how to improve your financial life. Taxes this week; maybe more taxes next week. We'll see. Thank you, David. Good to see you.

BACH: Thank you.

HEMMER: All right, here's Heidi again.

COLLINS: Still to come this morning, we are, of course, watching this situation in Iraq as tensions reach a boiling point amid escalating violence. There are Marines advancing into areas of Fallujah. Stay with us for the very latest right here on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Fighting resumed in Fallujah on Wednesday, where Marines are working to restore civil order there. You are looking at some of the video now. A bridge north of Fallujah under U.S. Marine control came under insurgent attack this morning. That is according to reports from the city.

We want to turn things over to Jack now and the question of the day on point.

JACK CAFFERTY, CNN ANCHOR: Things are going from bad to worse over there in Iraq. Heidi, thank you.

American troops suffering heavier casualties than they have since the major combat was declared over a year ago.

American commanders say they will arrest the rebel Shiite cleric, Muqtada Al-Sadr. He's hiding in a mosque, continuing to incite his followers. The top U.S. administrator, Paul Bremer, insists Iraq is on track for the June 30 handover of power, but lawmakers now from both parties are asking if that deadline should be revisited.

The question is: Is the June 30 deadline realistic?

John in Willard, Ohio, says: "It doesn't matter if it's June 30 or 10 years from now. The area never has and never will be stable. I get tired of hearing look at all we've accomplished. We haven't accomplished a damn thing. The structures we are rebuilding are structures we destroyed."

Barb in Arlington, Virginia: "No, the date is not realistic, but it can't be moved or the U.S. will lose even more credibility. My heart goes out to our troops, and I have only disdain for our administration with its ill-thought-out adventure. Robert in Raleigh, North Carolina: "The June 30 transfer of power seems to be more symbolic. The U.S. forces will remain and Paul Bremer will depart. American taxpayers will continue to pump millions of dollars into Iraq. What will really change?"

Tony in Winnipeg, Manitoba: "June 30 is as good a date as any. Keep the process moving. If we let the insurgents set the agenda and this war is as good as lost."

And finally, Michael in Huron, South Dakota: "One country having just finished a war and having a bright future before it took six years to make a system that worked. That country was the United States. To expect that Iraq, divided by religious strife and infested with Baathists, Fedayeen and foreign mercenaries, can form a stable government by June 30th is completely ridiculous."

AM@CNN.com is the e-mail address.

HEMMER: A much different topic now. Title town, Storrs, Connecticut, college basketball title town. The UConn women won their third straight NCAA title last night, joining the men who did the night before. Connecticut is the first school ever to hold both the men's title and the women's title the same year. The Huskies knocked off Tennessee, 70-61, the final. The lady Vols is the only other team to three-peat.

Celebrations in Storrs, Connecticut, included the street -- some fires, overturned cars and arrests. The same scene we have seen repeatedly in this country after a title. That was the situation last night in Storrs, Connecticut.

Meanwhile, business news. Wal-Mart takes a hit at the ballot box. Here with that and a market preview, Andy Serwer, the first check of the business world today, "Minding Your Business." Good morning to you.

ANDY SERWER, "FORTUNE" MAGAZINE: Good morning.

HEMMER: Wal-Mart lost this one in California.

SERWER: So did I, because I picked the Tennessee Vols last night. So, a stringing rebuke for me as well.

A stinging rebuke for the nation's largest employer, the world's biggest company, Wal-Mart, this is -- you may remember this story. They got in a dispute in Inglewood, California, trying to put in one of those supercenters. And they put it on the ballot box, because they met with resistance from local officials in terms of trying to have -- get around some local ordinances and zoning regulations.

Yesterday, folks in Inglewood sharply rejected Wal-Mart's attempt to put a supercenter in there. The vote was 7,000 against and 4,500 for.

On the other side of this, though, the labor unions, as well as religious groups. And you can see here, here is what they are looking to do, Bill. Put a supercenter in there and do some things like that.

So, anyway, it's interesting, because this all has to do with grocery stores (UNINTELLIGIBLE).

HEMMER: A quick thought here. Wal-Mart and Wal-Mart supercenter, the difference is?

SERWER: Wal-Mart is just a regular Wal-Mart, and the supercenter has the grocery stores in it. And they have become the nation's largest...

COLLINS: You don't shop at Wal-Mart, Bill?

HEMMER: Yes, there are not many...

SERWER: We've been living in New York City too long.

HEMMER: ... Wal-Marts in Manhattan.

SERWER: That's right.

HEMMER: That would be one expensive store, let me tell you.

SERWER: Yes.

HEMMER: A market preview, earnings season is among us.

SERWER: Yes.

HEMMER: And helping or hurting?

SERWER: Last night, Alcoa did well, but not well enough. Their profits doubled, but Wall Street was looking for a little bit more.

Yesterday, techs got a little bit hurt -- you can see here -- mostly because of Nokia, which is not on Nasdaq, but it hurt the Nasdaq stocks. Yahoo! after the bell.

Here's an interesting one. Papa John's is saying its business is not going so well. You know why? Higher cheese prices. Sometimes business is very simple.

HEMMER: Oh.

SERWER: If you've got a pizza company and the cheese costs more, your business is not going to do as well.

HEMMER: OK.

SERWER: Right?

COLLINS: Clearly.

SERWER: Yes. I mean, business is simple stuff, really.

HEMMER: One large pepperoni for the group here. SERWER: That's it.

HEMMER: That makes a breakfast, right?

SERWER: We'll bring it.

(CROSSTALK)

HEMMER: Thank you, Andy.

A break here. In a moment, the U.S. is vowing to take down the private army of a radical Muslim cleric. That operation continues as we speak.

The latest from Baghdad on a Wednesday morning right after this.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.


Aired April 7, 2004 - 07:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: In a matter of moments here, Heidi, we're going back to Iraq on this story; also the Pentagon and Barbara Starr. A lot to talk about yet again today.
And Senator Carl Levin, a Democrat, Armed Services Committee, out of Michigan, talking about that June 30 deadline, whether that's a workable goal, whether that's a military decision, or a political decision, or both. So, Carl Levin standing by in D.C. In a moment here, his thoughts.

HEIDI COLLINS, CNN ANCHOR: Also, millions of you still haven't done your taxes yet. And even if you have, you'll probably be interested to know what common mistakes can lead to an audit. Our personal finance coach, David Bach, is back today with "90-Second Tips." He'll tell you what not to do at tax time.

HEMMER: And good advice.

(CROSSTALK)

COLLINS: How to avoid an audit.

HEMMER: That's right.

COLLINS: To the news now this morning. As you know, more attacks against U.S. troops in Iraq. Two U.S. Marines were injured outside of Fallujah today. Insurgents attacked a tank with rocket- propelled grenades. Witnesses say new fighting has erupted in Ramadi. As many as a dozen Marines were killed there yesterday. We'll go live to the Pentagon for more on that in just a moment.

Other news now. The only person convicted in connection with the September 11 terror attacks in being released, for now. Motassadeq was found guilty last year of aiding a Hamburg al Qaeda cell. A federal appeals court overturned the verdict last month. His lawyers now say Motassadeq is being freed until a retrial expected to begin in June.

A somber ceremony in Rwanda. They are marking 10 years since Hutu extremists began a killing rampage there. Leaders from African nations and dignitaries throughout the world gathered to observe three minutes of silence for the 1994 genocide. Nearly a million people were murdered in 100 days.

The infamous juror No. 4 in the Tyco trial reportedly says she would have voted to acquit on all counts. According to today's "New York Times" Ruth Jordan says the trial would have ended with a hung jury. The judge declared a mistrial after Jordan received a threatening letter, after she allegedly made a hand gesture. Jordan denies making the OK hand sign to defense lawyers in the courtroom.

And an Ohio woman who claimed she bought, then lost, a winning $162 million lottery ticket is actually going to be losing some dough. Alisha Battle (ph) is being fined $1,000. She was found guilty of filing a false police report. The judge also ordered the 41-year-old to perform 50 hours of community service. Battle (ph) also had to shell out more than five grand in restitution for police overtime after the case drew national attention.

HEMMER: It's a costly prevarication, would you say?

COLLINS: Prevarication indeed.

(WEATHER BREAK)

HEMMER: Tough talk out of Baghdad already today. A top U.S. general there vows to -- quote -- "destroy that private militia" that is linked to that radical Shiite Muslim cleric, Muqtada Al-Sadr.

Brigadier General Mark Kimmitt speaking earlier today about U.S. and coalition forces battling with the insurgents in a number of cities across Iraq. While U.S. forces have taken significant casualties over the past day, Iraqi losses are said to be significantly higher than the U.S. side.

To the Pentagon and Barbara Starr.

How much concern is there in D.C. about this now? Barbara -- good morning.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning to you, Bill.

Well, Iraq is certainly front and center now on the Bush administration's agenda. Last night, the president held a secure conference call with his top advisers -- Secretary of Defense Rumsfeld, General Richard Myers, chairman of the joint chiefs, Condoleezza Rice, national security adviser, and his chief of staff, Andy Card -- discussing the situation. We are told the president was updated on all of the U.S. military offensive operations now going on across Iraq.

There will be another conference call today. General John Abizaid will participate. They will look at it. We are told the president is, of course, obviously taking this very seriously. But everything is being considered in a calm, orderly fashion.

Secretary Rumsfeld is said to be considering this. The test of wills that was expected between the insurgents and the coalition as they counted down towards that June 30 transition date. But a top official saying here, our test of wills is stronger, and that the coalition will succeed.

HEMMER: (UNINTELLIGIBLE) just emphasized that point on this troop rotation. There are suggestions now that many thousands may be staying longer than before, as you have pointed out. Where is the debate today on whether more U.S. forces are needed in Iraq?

STARR: Right. Now, we are told so far General Abizaid has not asked for any change in the troop disposition there, that it is too soon. But here's the calculation they're looking at. We are told right now about 135,000 troops in Iraq. And, of course, only some percentage of them are combat troops. The rest are support. Under the current rotation plan, that 135,000 will go down to about 115,000 troops by June.

So, the question they will deal with is whether or not they can keep that rotation schedule, or do they need to make some adjustment to keep the troop level higher, given the number of hot spots that continue to flair up and the need to continue to deal with those.

At the same time, they are also looking at what so-called quick reaction forces they may have in the region that they can tap into and bring in if they need; again, to deal with these new requirements, if you will -- the requirement being these hot spots that are continuing to flair up that they are having to deal with.

HEMMER: Barbara, thanks, from the Pentagon there.

And amid the latest violence that we're talking about today, debate continues about whether power can be transferred from the U.S. to the Iraqis by that deadline, the 30th of June.

Senator Carl Levin, a Democrat on the Senate Armed Services Committee and a key member of the Intelligence Committee, is our guest this hour, live in D.C.

Senator, Welcome back to AMERICAN MORNING. Good to have you here.

SEN. CARL LEVIN (D), MICHIGAN: Good morning.

HEMMER: You have said that June 30 date now has a -- quote -- "life of its own." What do you mean by that, Senator?

LEVIN: Well, it was a date which was set arbitrarily, and now it has great meaning to the people of Iraq. And to move away from it would create some real difficulty, because, obviously, everybody is interested in a transfer of sovereignty back to the Iraqis.

The problem is that we could have even greater difficulty if we move up to that date, if we are inflexible about it, and if there's no entity in Iraq to whom we can transfer sovereignty that has the support of the people of Iraq. We don't know that such an entity can be fashioned by that date, and therefore we ought to be more flexible about it.

And most importantly, we ought to seek the support and advice of the international community relative to that date. It was set without the involvement of the international community or the U.N. It was set unilaterally by us, and we should not repeat the unilateral mistake that we made before the war in not understanding the importance of having the international community with us on such an important decision as setting a date for the transition of sovereignty back to an Iraqi entity.

HEMMER: Senator, you touched on it. I'd like to delve just a bit deeper. How do you come down on the argument the White House says that the military says in Iraq, all of the reports we're getting out of there say the Iraqis say that would be essentially a step backwards for them. Your response to that.

LEVIN: If that's what the view of the Iraqis is, then so be it. Then we should maintain that date. But I think we should involve the leadership of the various entities in Iraq in this matter and at least be flexible and say that if the leadership of, if all of the Iraqi factions want that to be transferred, and if there's an entity to whom we can transfer it, fine. Then let's transfer it.

But we should not unilaterally set a date and then be inflexible about it, because it's very possible that as that date comes forward, that there is not going to be a consensus about transferring sovereignty because there's no entity to whom to transfer sovereignty to.

But most importantly, we should not repeat the mistake that we made before going into this war of not having the support of the international community. The U.N. should be involved in this decision relative to the transfer as to what the entity will be and as to what the date will be.

HEMMER: If you're going to move it, where do you move it?

LEVIN: It depends on the circumstances that exist when the time comes. But we cannot unilaterally make these decisions. We cannot just arbitrarily and unilaterally say it's going to be June 30.

If we really want the international community there with us to make these very tough political decisions, then we've got to reach out to them and say, hey, do you agree with us that we ought to set that date arbitrarily? I don't see that reaching out to the international community and making them true partners. What I see is just us making decisions on our own, and then saying to the U.N., hey, come on in now and try to help us. That's not the way to have a true partnership.

HEMMER: Senator, is this mostly symbolic? If we're going to have 100,000 troops there on the ground, maybe more come handover date...

LEVIN: There's a lot of symbolism -- I'm sorry. There's a lot of symbolism in it, obviously, but it's much, much more than that. And symbols have some major consequences on the ground. There's a lot of symbolism that is driving people right now to violence in Iraq. So symbols count.

HEMMER: Thank you, Senator Carl Levin, a Democrat from Michigan there in D.C. Appreciate your time. Thank you, sir. COLLINS: Of course, we are going to be keeping our eye on the situation there, the still developing situation that is in Iraq this morning. Escalating violence as U.S. forces vow to crush a rebel army. We're going to have a live report from Baghdad coming up in the next hour.

HEMMER: Also, on a much different topic, but pretty appropriate, too. 90-second tax tips today. Simple steps that could help you avoid that audit. David Bach has those tips in a moment.

COLLINS: Plus, UConn's twin victories in the NCAAP. Highlights as UConn's women take the championship. Stay with us on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: All right. You have just about a week left before you file that tax return, but do not rush. That is one piece of advice on how to avoid mistakes this year.

Our resident personal finance contributor, David Bach, author of "The Automatic Millionaire," here with some tax tips today.

Good morning, David. Nice to have you here.

DAVID BACH, CNN PERSONAL FINANCE CONTRIBUTOR: Good morning, Bill. Good to be here.

HEMMER: Listen, you say when in a rush, keep it simple. Easier said than done come April 15. But looking at some of these tips -- and we can put them on the screen -- some of these seem very basic, very rudimentary.

BACH: Unbelievably simple. This is coming right from the IRS. We asked the IRS: What are the single biggest mistake people make? Are you ready for this? They can't read our handwriting. They said, David, tell everyone to use the stickers, the labels that you get in the mail. Even if the address is wrong, just cross out the address and update it. But at least we can read your name. If you write this out, please, they said, tell everybody to use their best penmanship, because if we can't read your name or your social security number, we're going to have a problem.

Now, also, make sure if you've got kids that you put their social security numbers down. That's very important, especially if you want the child credit.

And then finally, double check the math. Now, again, this is the stuff they teach you back in eighth grade, but put a bracket around minus signs. Don't just put them a minus sign. They want a bracket on your tax returns.

HEMMER: All right, that was the first screen, but there's another screen.

BACH: Yes. HEMMER: And, again, these are pretty basic. Only check one filing status. Sign and date returns. Do people forget that?

BACH: Believe it or not, they do. And believe it or not, is there are a lot of people who will put single and jointly on the same tax return. You can't do both. And also, they added on this list, make sure that you make a copy of your tax returns.

And this is really my last tip here. Not only make a copy, but send it through the U.S. Post Office. Get it certified and get them to get a signature return card, so that means that the IRS will actually sign that they received your tax return, and they'll mail that back to you. You take that. You staple it to the copy of your tax return. Put that in a file. Now, you've got proof that you mailed it to them and you've got proof that they received it.

HEMMER: And you can back it up. Always great advice there.

Filing is one thing, but paying is another. Your advice there?

BACH: Right. Well guess what? They don't want you to make the check out to the IRS, and people do. It's the United States Treasury. Remember, everybody, United States Treasury.

Also, believe it or not, people forget to sign their checks. Sign the check. Now, they want four things on your check. They want not only your name and your signature, but they want to know what filing form did you use? What year are you paying? They want your social security number. All of that right they want it right on the front of your check.

Now, that kind of makes me nervous. That's a lot of personal information. But the IRS' point is these checks get separated from your tax returns, and sometimes they get the check and they don't know what it's for. So, if it's got all of that on the front of the check, it makes their job easy, and that means that you get your money back faster.

HEMMER: Also when paying, credit card. Good advice or not to use that?

BACH: Well, this is a new technology. Now, I'm against it, but you can go to a Web site, which I believe we've got up here on the cairones (ph), www, I believe it's pay1040.com. The problem is if you pay your taxes on a credit card, there's a cost -- 2.49 percent. Make it simple, 2.5 percent. So, on $1,000, it's going to cost you $25 in a servicing fee to use a credit card. Plus, then if you keep that debt on your credit card and you've got an interest rate of 20 percent, well, that's a bad deal.

HEMMER: Well, listen, if you say it, I believe it, too.

To repeat your mantra, for people to get the refund quickly and the retirement accounts as well, talking about that, quickly on the screen some of the amounts for people to remember. Take a look at some of these. BACH: Yes.

HEMMER: And as we look at these, David...

BACH: It's not too late.

HEMMER: I also want to talk about what you point out, that certain people need to make withdrawals from their retirement accounts. To whom does that apply?

BACH: OK, again, $3,000 per person. If you're over 50, you can still put $3,500 away up to the date of April 15. SEP IRAs, you've got $40,000 you can put away, up to 25 percent. Don't forget the spousal IRA. If you're working and you've got a 401(k) plan and your spouse doesn't work, under the age of 50, there's still the opportunity to put $3,000 in an IRA account, a straight tax deduction. Over the age of 50, again, for the spouse, $3,500.

The last thing. If you are 70 years old, you've got to start pulling money out of your IRA account. So, at 70 and a half, the IRS says roughly 5 percent of the money in your IRA account has to come out. If you don't do this, the penalty is 50 percent of what you are not withdrawing.

HEMMER: Wow!

BACH: So, if you've got parents who are older, make sure you check with them and say, hey, are you taking the withdrawals that are required out of your IRA account?

The last thing I'll tell you on that note, it's combining all of your IRA accounts. So, it doesn't have to come out of every single IRA. It's the combined total.

HEMMER: Last comment. If you could give any bit of advice in this final week for last-minute filing, what is it?

BACH: Well, the IRS tell us it's to itemize your tax deductions, because that's how you're going to get more money back. Go to the IRS Web site. Go to www.irs.gov.

I believe this. I believe this is true.

HEMMER: Yes.

BACH: If you spent 30 minutes at this Web site, you would find tips that the IRS is giving you that would put money back in your pocket. Even if you used a CPA, because I'm promising you, there are things on this Web site that the IRS will tell you that your CPA is not looking at.

HEMMER: IRS.gov?

BACH: IRS.gov.

HEMMER: That's the Web site. Thank you, David. Good to see you. David Bach...

BACH: Thank you.

HEMMER: David Bach is host, by the way, of a nationally- syndicated radio show which airs Saturday afternoons on Ciria (ph) satellite. And every Wednesday, including this Wednesday, catch David right here on AMERICAN MORNING with more tips on how to improve your financial life. Taxes this week; maybe more taxes next week. We'll see. Thank you, David. Good to see you.

BACH: Thank you.

HEMMER: All right, here's Heidi again.

COLLINS: Still to come this morning, we are, of course, watching this situation in Iraq as tensions reach a boiling point amid escalating violence. There are Marines advancing into areas of Fallujah. Stay with us for the very latest right here on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Fighting resumed in Fallujah on Wednesday, where Marines are working to restore civil order there. You are looking at some of the video now. A bridge north of Fallujah under U.S. Marine control came under insurgent attack this morning. That is according to reports from the city.

We want to turn things over to Jack now and the question of the day on point.

JACK CAFFERTY, CNN ANCHOR: Things are going from bad to worse over there in Iraq. Heidi, thank you.

American troops suffering heavier casualties than they have since the major combat was declared over a year ago.

American commanders say they will arrest the rebel Shiite cleric, Muqtada Al-Sadr. He's hiding in a mosque, continuing to incite his followers. The top U.S. administrator, Paul Bremer, insists Iraq is on track for the June 30 handover of power, but lawmakers now from both parties are asking if that deadline should be revisited.

The question is: Is the June 30 deadline realistic?

John in Willard, Ohio, says: "It doesn't matter if it's June 30 or 10 years from now. The area never has and never will be stable. I get tired of hearing look at all we've accomplished. We haven't accomplished a damn thing. The structures we are rebuilding are structures we destroyed."

Barb in Arlington, Virginia: "No, the date is not realistic, but it can't be moved or the U.S. will lose even more credibility. My heart goes out to our troops, and I have only disdain for our administration with its ill-thought-out adventure. Robert in Raleigh, North Carolina: "The June 30 transfer of power seems to be more symbolic. The U.S. forces will remain and Paul Bremer will depart. American taxpayers will continue to pump millions of dollars into Iraq. What will really change?"

Tony in Winnipeg, Manitoba: "June 30 is as good a date as any. Keep the process moving. If we let the insurgents set the agenda and this war is as good as lost."

And finally, Michael in Huron, South Dakota: "One country having just finished a war and having a bright future before it took six years to make a system that worked. That country was the United States. To expect that Iraq, divided by religious strife and infested with Baathists, Fedayeen and foreign mercenaries, can form a stable government by June 30th is completely ridiculous."

AM@CNN.com is the e-mail address.

HEMMER: A much different topic now. Title town, Storrs, Connecticut, college basketball title town. The UConn women won their third straight NCAA title last night, joining the men who did the night before. Connecticut is the first school ever to hold both the men's title and the women's title the same year. The Huskies knocked off Tennessee, 70-61, the final. The lady Vols is the only other team to three-peat.

Celebrations in Storrs, Connecticut, included the street -- some fires, overturned cars and arrests. The same scene we have seen repeatedly in this country after a title. That was the situation last night in Storrs, Connecticut.

Meanwhile, business news. Wal-Mart takes a hit at the ballot box. Here with that and a market preview, Andy Serwer, the first check of the business world today, "Minding Your Business." Good morning to you.

ANDY SERWER, "FORTUNE" MAGAZINE: Good morning.

HEMMER: Wal-Mart lost this one in California.

SERWER: So did I, because I picked the Tennessee Vols last night. So, a stringing rebuke for me as well.

A stinging rebuke for the nation's largest employer, the world's biggest company, Wal-Mart, this is -- you may remember this story. They got in a dispute in Inglewood, California, trying to put in one of those supercenters. And they put it on the ballot box, because they met with resistance from local officials in terms of trying to have -- get around some local ordinances and zoning regulations.

Yesterday, folks in Inglewood sharply rejected Wal-Mart's attempt to put a supercenter in there. The vote was 7,000 against and 4,500 for.

On the other side of this, though, the labor unions, as well as religious groups. And you can see here, here is what they are looking to do, Bill. Put a supercenter in there and do some things like that.

So, anyway, it's interesting, because this all has to do with grocery stores (UNINTELLIGIBLE).

HEMMER: A quick thought here. Wal-Mart and Wal-Mart supercenter, the difference is?

SERWER: Wal-Mart is just a regular Wal-Mart, and the supercenter has the grocery stores in it. And they have become the nation's largest...

COLLINS: You don't shop at Wal-Mart, Bill?

HEMMER: Yes, there are not many...

SERWER: We've been living in New York City too long.

HEMMER: ... Wal-Marts in Manhattan.

SERWER: That's right.

HEMMER: That would be one expensive store, let me tell you.

SERWER: Yes.

HEMMER: A market preview, earnings season is among us.

SERWER: Yes.

HEMMER: And helping or hurting?

SERWER: Last night, Alcoa did well, but not well enough. Their profits doubled, but Wall Street was looking for a little bit more.

Yesterday, techs got a little bit hurt -- you can see here -- mostly because of Nokia, which is not on Nasdaq, but it hurt the Nasdaq stocks. Yahoo! after the bell.

Here's an interesting one. Papa John's is saying its business is not going so well. You know why? Higher cheese prices. Sometimes business is very simple.

HEMMER: Oh.

SERWER: If you've got a pizza company and the cheese costs more, your business is not going to do as well.

HEMMER: OK.

SERWER: Right?

COLLINS: Clearly.

SERWER: Yes. I mean, business is simple stuff, really.

HEMMER: One large pepperoni for the group here. SERWER: That's it.

HEMMER: That makes a breakfast, right?

SERWER: We'll bring it.

(CROSSTALK)

HEMMER: Thank you, Andy.

A break here. In a moment, the U.S. is vowing to take down the private army of a radical Muslim cleric. That operation continues as we speak.

The latest from Baghdad on a Wednesday morning right after this.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.