Return to Transcripts main page
CNN Newsroom
Job Seekers Struggle with Unemployment, Underemployment; IRS: File Tax Return, Then Negotiate Payment; No Clear Line Separates Alcoholics from Other Drinkers; Red Tape Makes Some Officials Turn Down Stimulus Money; Responding to Obama's Speech on Economy; Last- Minute Tax Credit Tips; Safety of Micro, Mini Cars Questioned; White House Speaks out about North Korea
Aired April 14, 2009 - 13:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, ANCHOR: From recession to recovery to prosperity, that's the plan. This hour, progress cited by the president, through the eyes of some economic casualties, people who need jobs.
Pushing forward to tax day: credits and deductions you may not know about. We go one-on-one with the head tax man.
And if you've downsized your ride, you've upsized your risk. When it comes to vehicle safety, size matters.
Hello, everyone. I'm Kyra Phillips, live at the CNN world headquarters in Atlanta. You're live in the CNN NEWSROOM.
Well, folks, we're on our way, but we're not there yet. You heard it here live: President Obama taking stock of the stimulus, the bailouts, the housing plan, the credit plan, all his plans to put the recession behind us. We didn't hear any bombshells, though; just bullet points and pointed reminders that hard times still lie ahead.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: 2009 will continue to be a difficult year for America's economy and, obviously, most difficult for those who have lost their jobs. The severity of this recession will cause more job loss, more foreclosures, and more pain before it ends. The market will continue to rise and fall. Credit is still not flowing nearly as easily as it should. The process for restructuring AIG and the auto companies will involve difficult and sometimes unpopular choices. We are not finished yet on that front. And all of this means that there's much more work to be done.
(END VIDEO CLIP)
PHILLIPS: Well, for 5.1 million Americans, the recession began with a pink slip and could end with a new job. Two of those Americans watched the president's speech and join me now with their own stories.
Kim Thomas is a widowed mother of two with a bachelor's degree in criminal justice and a master's in administration. She's here with me in Atlanta. And John Eller is a husband and father of eight who does have a job, but it's nothing like the six-figure executive position that he lost. John's from Kansas City. Kim, let's go ahead and start with you. What did you hear or not hear from the president that could impact you?
KIM THOMAS, JOB SEEKER: Well, I heard that he is definitely trying to stimulate the economy, which is very important, because we have to stimulate the economy by spending money and overseeing the banks and making sure that the banks will lend money, which is very important, because if banks do not lend money, then people cannot get loans for cars, for health -- excuse me, for cars, for education loans, for housing.
So we definitely need to have some type of strong impact in this economy. And President Obama will be doing so. Very much -- faith in him.
PHILLIPS: Well -- is there anything that he said that you heard that you thought, "OK, I'm going to land a job because of what he just said"?
THOMAS: Yes. I believe that President Obama will stimulate the economy, because he will give the employers the incentive to hire people by giving them money to grow their businesses.
PHILLIPS: Got it. John, how about you? What did you hear or not hear from the president that you think could impact you directly?
JOHN ELLER, UNDEREMPLOYED FORMER EXECUTIVE: Well, I heard a lot of good things coming from the president. You know, how -- like Kim said, how he wants to stimulate the economy.
But, you know, the signs of how it's going to impact me are going to be very slow, because you know, like Kim said, there's not -- you know, there's -- there's some good signs, but how they are going to affect, you know, the average Joe person, you know, it's just going to -- it's going to take a long time before it trickles down to me. I don't -- I don't see it helping me, really, any for at least, probably, you know, maybe the year end, maybe the start of the new year.
PHILLIPS: All right. John, not so optimistic. Kim, maybe a little more optimistic. We're going to talk to you both throughout the next couple of hours. We're also going to give you a chance to give your 30-second pitch to employers that may be out there. Guys, we'll talk to you in just a minute.
Meanwhile, the daily White House media briefing due to start about 1:15 eastern. We're going to join the first few minutes live as soon as that starts.
And nothing says recovery like a healthy profit, and one and two- thirds billion dollars is a pretty good quarter in anybody's books. That's what Goldman Sachs booked in the first quarter of this year, easily beating expectations and spurring plans to quickly pay back the $10 billion in taxpayer money that it took last fall.
Goldman is the second major bank in less than a week. Wells Fargo was first, reporting a major bottom-line rebound.
Right now, as we take a look at the big board there, Dow Industrials are down 140 points at this moment.
Well, we're pushing forward to tomorrow, April 15. If you're still doing your taxes, you probably need a hug and a Tylenol right about now. But you've still got time. Today we've got tips to get the most from your return. We also have the real deal about your taxes. We're going to show you what you're getting for your money, and we're going to toss some questions at the IRS commissioner.
Of course, if it weren't for the last minute, nothing would get done. Our personal financial editor, Gerri Willis, joins us with some 11th hour advice on tax credits you can't miss -- to afford -- Gerri.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hey, that's right. You do need that Tylenol, maybe a little, you know, glass of wine or something to get this finished off this year.
But one thing to keep in mind here is getting the biggest tax credits. There are a lot of them this year. Here's what one tax expert had to say.
(BEGIN VIDEO CLIP)
BOB MEIGHAN, TURBO TAX: The most valuable credit this year will be the first-time home buyers' credit, which is worth up to $8,000. So if you're buying a house for the first time, you get a credit. Plus, you get the traditional deductions like your mortgage interest and your points if you pay points, and your real-estate taxes.
(END VIDEO CLIP)
WILLIS: All right. So let's drill down on some of these goodies in there that you don't want to miss.
He just talked about the $8,000 first-time home buyers' tax credit. You can claim the credit on your '08 or '09 tax return if you buy a house this year before December 1, 2009.
Now, there are income limitations here. The credit phases out for joint filers with income of more than $150,000 and single filers with an income above $75,000.
Now, if you already own your home and you're a non-itemizer -- you fill out the short form -- this year you can deduct up to 500 bucks for individuals and 1,000 for married couples filing jointly. In the past, mortgage interest has been deductible only for itemizers.
Also, there's a second chance for the stimulus payment if you didn't receive it last year. Remember those $600 checks for singles, $1,200 for married couples? If you didn't get the full amount, you may qualify for the remainder as a tax credit on your '08 return. This could happen if your financial situation was different in '08 from '07. Say you lost your job. Maybe you had a baby or adopted a child. You could get some extra Dough. Also important to know here, flood victims can file later this year. If you were a victim of a flooding in Minnesota and North Dakota, you have an extra 30 days to file, until May 15, and you definitely want to take advantage of that -- Kyra.
PHILLIPS: So what can we look forward to next year?
WILLIS: Well, there's more coming next year. Yes. This year if you make energy-efficient home improvements to your house, keep track, because you're going to be able to deduct a lot of that: 30 percent of the cost of products installed this year and next.
If you're thinking of installing windows, doors, you name it, you might be able to get as much as $1,500 in tax credits, available over the next two years.
Also, if you're unemployed this year, you're getting unemployment benefits, you could get -- you could have the first $2,400 of those benefits in 2009 not taxed. They are currently taxed for '08 benefits.
So important to pay attention to. There are some more benefits (ph) coming at you next year -- Kyra.
PHILLIPS: All right, Gerri. Thanks.
WILLIS: My pleasure.
PHILLIPS: Well, chance are that you're going to get some money back from the IRS this year. At least 70 percent of tax filers do. And so far this year, the average refund has been about $2,700. It's a pretty decent chunk of change. We want to know your plan: spend, save, or pay bills? If you want to share, e-mail us at CNNNEWSROOM@CNN.com. You can also weigh in at iReport.com.
And we'll keep pushing this thing forward. I talked to the IRS commissioner just a little while ago. He told me who's really going to be under the microscope this year. Maybe that's you. That's coming up.
Plus, we wanted to know if taxpayers in other countries pay more or less than we do. Those answers might surprise you.
The mini and micro. They may be smart and green, but are they safe? We've got the results of new crash tests and reaction from the companies who make them.
(COMMERCIAL BREAK)
PHILLIPS: Powerful winds blew down trees and power lines in the Atlanta area, leaving tens of thousands of people without power. We're going to check in with Chad Myers for the latest on the severe weather.
(COMMERCIAL BREAK) PHILLIPS: Well, the captain and crew from the hijacked Maersk Alabama will be back in the United States tomorrow night. This comes a week after pirates attacked the ship off of the coast of Somalia. They'll be flying from Mombassa, Kenya, to Andrews Air Force Base. Forecast for that area tomorrow: joyful with a 100 percent chance of tears.
Well, the video is pretty incredible. Huge trees uprooted, homes damaged, tens of thousands of people still without power. This is the scene here in the Atlanta area after a bruising round of severe weather. At the height of the storm a quarter of a million customers in the dark. Some of them may not get their power back until tomorrow night.
The scene in Fitzgerald, in South Georgia -- that's where a possible tornado caused property damage and blew down a lot of trees. No injuries, thankfully, were reported there.
Those scenes quite familiar across much of the south this spring. Chad Myers now in the CNN Weather Center.
(WEATHER REPORT)
PHILLIPS: Well, an update now on an amazing incident that we told you about yesterday, speaking of airplanes. A passenger had to jump into the pilot seat and land a twin-engine plane.
We now know his name. Doug White took over the controls and landed the plane in Fort Myers, Florida, after the pilot died. Here's how it played out as air traffic controllers helped Doug get the plane safely on the ground.
(BEGIN VIDEO CLIP)
DOUG WHITE, PASSENGER: When I touch down, if I ever touch down, do I just kill the throttle or what?
UNIDENTIFIED MALE: That's correct. When you touch down, slowly kill the throttle. Nine delta whiskey, the runway is all yours. You can turn left or right, whatever is easier for you. Power all the way back, and they're telling me max braking.
WHITE: (UNINTELLIGIBLE) Thank you, niner delta whiskey.
UNIDENTIFIED MALE: Niner delta whiskey, when you're ready you can go to ground frequency one, two, one point niner. Nice work.
WHITE: One, two, one point nine. Thank you.
(END VIDEO CLIP)
PHILLIPS: He's breathing a sigh of relief.
A couple other points about this story. Doug is an experienced pilot of single-engine planes, but this was the first time he ever piloted a twin engine. He was on that plane with his wife and two daughters, heading home after attending a funeral for his brother.
Well, it's one of the last things embattled GM needs: more bad publicity. The automaker is recalling 1.5 million cars because of potential engine fires. The cars were made between 1997 and 2003. As -- included in that: Chevy Impalas, Luminas and Monte Carlos. Buick Regals, also, Oldsmobile Intrigues, and the Pontiac Grand Prix.
GM says it hasn't received any reports of engine fires or injuries to this point.
Michelin says it will shut down on of its tire plants in Eastern Alabama by the end of October. About 1,000 people will lose their jobs. The plant makes Goodrich tires. The company claims a drop in demand. And the work will be shifted now to two other plants.
And they are oh, so cute. Some would even call them tiny. And when it comes to gas, well, they're like camels. But new crash tests raise serious questions about the safety of mini and micro cars.
Here's CNN's Samantha Hayes.
(BEGIN VIDEOTAPE)
SAMANTHA HAYES, CNN CORRESPONDENT (voice-over): They may cause envy at the gas pump or in those oh-so-small parking spaces, but check out what happens in a head-to-head crash between mini and micro cars against mid-sized cars.
RUSS RADER, INSURANCE INSTITUTE FOR HIGHWAY SAFETY: You crash a Camry into a Toyota Yaris, a Honda Fit into a Honda Accord. And the Smart Car into a Mercedes C class. And the results boil down to the laws of physics.
HAYES: The Insurance Institute of Highway Safety says colliding at 40 miles per hour, the mid-size vehicles maintained a high level of protection, while the mini and micro cars all earned poor ratings.
RADER: The results of the car-to-car tests show that there would be serious, even fatal injuries, for a real-world driver in a crash like this.
HAYES: All three car makers objected. Toyota Motors says the speed of the crash test was greater than 99.9 percent of real-world crashes. Honda calls the tests unusual and extreme, and so does the president of Smart USA.
DAVE SCHEMBRI, PRESIDENT, SMART USA: It's one thing to test in parameters in a lab in which all things are equal. And it's quite a different thing when you go out onto the highways where nothing is ever equal, and that's where we think the safety systems take hold.
HAYES (on camera): The smallest of the small cars, the Smart 4- 2, has been on the road for several years now, and the manufacturer objects to these recent crash tests, saying that they don't take into consideration new technology. (voice-over) But when it comes to collisions with other vehicles -- in this case mid-sized cars -- the IIHS says it's better to be big, and you can still save on gas.
RADER: We have ways to make vehicles get better fuel economy without downsizing and down-weighting and forcing people into very small cars where the risks in crashes were higher.
HAYES: It's a debate unlikely to go away any time soon.
Samantha Hayes, CNN, Washington.
(END VIDEOTAPE)
PHILLIPS: and believe it or not, some other countries' tax rates actually make ours look pretty good. Josh Levs breaks it down for us live -- Josh.
(COMMERCIAL BREAK)
PHILLIPS: Straight to the White House briefing. Robert Gibbs stepping up to the mike. We're going to listen in for a couple minutes.
ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: Yesterday the Security Council called on North Korea for an agreement to (UNINTELLIGIBLE)... step in the wrong direction.
North Korea will not find acceptance by the international community unless it verifiably abandons its pursuit of nuclear weapons. The six-party talks are for North Korea, the best path towards that acceptance through dialogue.
The United States is prepared to work with North Korea and its neighbors through the six-party process to reduce tensions and achieve the elimination of nuclear weapons from the Korean Peninsula. We call on North Korea to cease its provocative threats, to respect the will of the international community, and to honor its international commitments and obligations.
With that, take us away.
QUESTION: I actually want to ask about North Korea. Apparently, they have -- I wanted to ask if you know whether they have kicked out U.N. and U.S. personnel?
GIBBS: I don't know the answer to that. We can certainly check and see if there's updated guidance.
QUESTION: More broadly, it seems like the situation with North Korea six-party talks, the whole trajectory is kind of unraveling. What's the strategy to put things back on track?
GIBBS: Well, let's -- let me go a little bit broader for a second, because I know that after the launch some time ago, there was certainly interest in what was going to happen at the United Nations. As I said in that brief statement, that -- and I think the administration is quite pleased with the result out of the United Nations in the condemnation for the launch, in requesting that the North Koreans abandon pursuit of its program and fulfill its obligations based on the agreement that it made.
They refrained from further provocations. And what the U.N. said is that there's a time period to look at additional -- the possibility of additional -- additional sanctions. So we're pleased with what we got.
QUESTION: Condemnations and requests for them to change actions were not actually, kind of strong statements to make to a country that repeatedly defied...
GIBBS: Well -- let me turn that question a little bit around. Because I think there was some question about whether or not you could even get five members of a Security Council or five of the permanent members of the Security Council to agree on a condemnation. Yesterday, 15 countries unanimously stood up and spoke out about the launch.
QUESTION: It took a few weeks to get there.
GIBBS: Well, you know, sometimes progress takes longer than a couple of days. I think that -- I know that you all had an interest in what the Security Council was going to do. At least you did several days ago.
I think it's important to understand what the Security Council did and remember this is not -- this is asking the North Koreans to live up to the agreement that the North Koreans entered into. This is not some pie-in-the-sky thing that a group of countries has asked another to do. This is -- this is the unanimous Security Council asking the North Koreans to live up to the obligations that it entered into in September of 2005, that we can seek a denuclearization of the Korean Peninsula.
QUESTION: But one might reasonably wonder where the leverage is...
PHILLIPS: We'll keep monitoring this briefing here. Robert Gibbs holding the presser there at the White House. You can also go to CNN.com/live if you want to watch in its entirety. Otherwise, we'll track it for you.
We're going to take a quick break. More from CNN NEWSROOM straight ahead.
(COMMERCIAL BREAK)
PHILLIPS: Well, if you think you've got a world of tax headaches, well, maybe this will make you feel a little better. Americans actually make out OK with the tax man, at least compared to our buddies in Belgium and our friends in France.
Josh Levs has been looking at tax burdens around the world, and he's got some pretty eye-popping numbers, huh?
JOSH LEVS, CNN CORRESPONDENT: Yes. You saw a couple of these, right? Kind of amazing. Have you seen these numbers yet?
PHILLIPS: No, I actually haven't. I've been waiting for you.
LEVS: Oh, good. All right. I'm going to show them to you. Yes, it's amazing when you look at it. And I'll tell everyone at the top, we'll give you context on why it works that way, too.
I want to zoom in on the board so everyone can see what we're talking about. This is an organization called the Organization for Economic Cooperation and Development. They have a lot of information on 30 different countries, and this Web site, MSN.com, took those figures and put together this. Check it out. Tax burdens around the world. It lists a whole bunch of different countries. If you're single, or if you're married with two kids, on average what do you pay in taxes?
For example, here in Australia, if you're single, on average, 47 percent income taxes. If you're married with two kids, about 36 percent.
So we looked at all of these numbers. And Kyra, we've got some graphics for you. Let's go to this first one. I want to show you some of the highest income tax rates in the world.
This is if you're married and have two kids: Turkey, Sweden, France and Poland, it's all around 42, 43 percent in those cases.
And you know what? The United States is one of the three lowest of this list. On average in America we're paying about 12 percent overall, if you're in that situation. Iceland is below us, Kyra, down 11 percent. And Ireland is the lowest, too, all of the way down at the bottom of the list of 30 countries, way down at 8 percent. So we're not talking a lot.
But of course, you've got to keep in mind, sure, a lot of places pay more, but they get stuff for it, too. So the last thing I want to show you, because we need to be fair here, is this quote that they point out. You know, in most countries with higher rates, families get more social services. They get, you know, secure pensions. They have health-care programs in a lot of cases. So the money goes to something, in a lot of countries. We're talking about democracies that vote, so they choose it that way.
Still, it does -- I think, Kyra, it makes you feel a little bit better on a day like this.
PHILLIPS: Yes. But at the same time, you know, you can look at health care, for example. You know? I mean, look at how we struggle with that here in the states, and that kind of works out better in other countries with that regard.
I'm all about going to Ireland. You know? Lower taxes and bigger Guinness. That's what I'm saying. LEVS: You know, I think that might be one of the reasons why my producer is very excited about that. We've got some people who love Ireland.
Let me show everybody, if you want to play this, check this out. Check this out. This is another Web site: worldwidetax.com. Look, you can just scroll through all these numbers. For corporate taxes or individual taxes, check it out. You can see all the different numbers. So not that anyone would consider living in another country. You can still see these numbers.
Also, send us all your thoughts today at iReport.com. We've got a whole tax thing going. We're going to be bringing you some of those on TV tomorrow, Kyra.
PHILLIPS: Thanks, Josh.
LEVS: You've got it.
PHILLIPS: We're going to push this story forward into the next hour. Christine Romans will tell us who's paying the most taxes, who's paying the least, and how where you can -- how where you live can actually govern how much you pay.
Well, 5.1 million workers have lost their jobs since this recession began. We're going to see how an unemployed mom and an underemployed dad see their own prospects for recovery after hearing the president's speech today.
(COMMERCIAL BREAK)
PHILLIPS: Glimmers of hope in the eyes of the economist in chief. And you may have seen here live on CNN, President Obama said all of the spending, lending and investing being done in the name of economic recovery is showing signs of progress.
But 2009, he warns, will continue to be a difficult year, with more lost jobs, more foreclosures, and more pain.
Lost jobs and pain are old news for our guests that we have with us this afternoon. John Eller is an unemployed executive in Kansas City. Kim Thomas, here with me, is a job seeker in Atlanta.
And Kim, just to kind of set the scene here, this has been extra tough for you. Not only did you lose your job, but you lost your husband just prior to that. How did he pass?
THOMAS: He died of a leg infection. Cellulitis.
PHILLIPS: And so you're struggling with that.
THOMAS: Yes.
PHILLIPS: And you have two daughters.
THOMAS: Yes. PHILLIPS: And then, how did you find out that you were going to lose your job? What did they tell you?
THOMAS: Well, basically, I worked for a grant-funded program. It was an after-school program. And they basically told me they would not renew my contract. So, after three years, I had to leave.
PHILLIPS: So, how have you been living day-to-day in this economy?
THOMAS: Living on my unemployment, budgeting and on my savings as well. Just being very careful with my spending, with my savings.
PHILLIPS: And you've got a daughter in college.
THOMAS: Yes.
PHILLIPS: You're one strong woman, you know that?
THOMAS: I try.
PHILLIPS: So, when you heard the president's speech, you were telling me you didn't really hear anything that really directly impacted you, but you did see a glimmer of hope, and that was...
THOMAS: I see that we have to stimulate the economy by spending. He has to renew confidence in the businesses out there, and once the money is given out to everyone as far as to stimulate the economy, I feel that as customers, consumers, we will spend. And there will be less layoffs, and then they will have more jobs.
PHILLIPS: John, how about you? Day to day, I mean, you were used to having a pretty good salary. You know, kind of describe to our viewers your family dynamic. How many in your family you're supporting, and how tough it's been day to day since you took such a severe cut in your salary.
ELLER: Well, I, you know, basically, I'm supporting my eight children and my wife. My wife now has had to go back into the workforce after being a stay at home mom for 16, 17 years. And it's, you know, since 2001, you know, I've been laid off, you know, multiple times due to downsizing.
And, you know, during that time frame, we've just, you know, with the multiple layoffs, we just learned that, you know, each time something like this happens, you know, we have to readjust our belts and, you know, tighten down on all of the finances and, you know, do a lot of praying because, you know, I feel that a lot of times, you know, we survive on a wing and a prayer.
PHILLIPS: And I also know that you have some pretty incredible kids that have been pitching in on so many creative ways to help you out. How much of a pay cut did you take? What was your salary when you had the higher paying job, and what are you making now? Do you mind telling me? ELLER: Well, I'm making right now $34,000 at the position that I'm currently in. And I'm making about -- a little under 30 percent of what I was making before.
PHILLIPS: Wow. All right.
ELLER: And that's not even considering the bonuses and things.
PHILLIPS: Well, we had talked to you a while back, a number of weeks back. And what we want to do now is give you a chance to give a 30-second pitch. Kim did it with us not too long ago, and we're going to talk to you again next hour and show your e-mail and talk about your resume as well.
But John, I would like to give you an opportunity, if you're prepared to do so, to give a 30-second pitch. We'll put your e-mail up, which we have now, and see if you get any bites on a job for you and your family, your eight kids. Does that sound all right?
ELLER: Yes, ma'am. Thank you.
PHILLIPS: All right. Let's go ahead and fire up the clock. And all right. John. Go for it.
ELLER: OK. My name is John Eller, and I've got about 25-plus years in customer service. Over 20 of those years has been at the executive level running call centers. And I've done -- I've ran basically sales organizations, technical support organizations. You know, I believe in bringing accountability down through all levels of the organization. And you know, in the 20 plus years I've managed call centers, you know...
Sorry.
PHILLIPS: That's all right. No, don't you be sorry. You got it in there. I'm going to just reiterate the e-mail, Jeller, all one word, 2, jeller2@kc.rr.com. I want you to let us know what happens if you get any lines out there. And we're going to talk to you, of course, within the next hour as well, more about your situation, John, and what you did or did not hear from the president. Sounds good?
ELLER: Thank you.
PHILLIPS: OK. Kim, we're going to bring you back, too, to talk about what you need and try and support you and what you're looking for.
THOMAS: Thank you.
PHILLIPS: Fabulous. We're going to keep both of you with us today.
All right, so, tomorrow's tax day, as you know. So, maybe you owe, but maybe you can't pay, and it's not a very good feeling. So, what do you do? Well, I asked someone who knows the tax man pretty well, IRS Commissioner Doug Shulman. (BEGIN VIDEO CLIP)
DOUG SHULMAN, IRS COMMISSIONER: We know that there's people out there who have filled out their tax return, owe the government money and literally can't pay. They're trying to make choices between putting food on the table, paying for gas for their car, paying their rent. For those people, it's important that they actually send their return in, pay what they can.
If they can't pay everything, give us a call, and we can work out a payment plan. We also know that in a collection standpoint, once somebody's agreed that they owe us money, and we're in a collection procedure, that there's going to be people who can't pay. And we've given our front-line employees more flexibility this year to work with taxpayers if they miss a payment, to potentially postpone collection or if they have a lien on their house, to actually let that lien become secondary to their mortgage so they can refinance their house or stay in their home.
PHILLIPS: So, Commissioner, how do you do that? Because we have been receiving a lot of e-mails from people saying, look, I just can't afford it. I don't have the money. I'm not even going to file tomorrow. So, what is your advice to those individuals directly?
SHULMAN: My advice to people is file. If people don't file their return, interest and penalties will stack up. If they file and can't pay, that's OK. They can file. Give us a call. We've got lots of ways we can work with you. We can work out a payment plan.
If literally, your expenses and your -- for basic necessities outstrip your ability to pay, we can compromise that debt and have you owe less. But what's really important is people not disappear. If they disappear, it will show up on computers. We'll come after them. If they don't disappear, and they file, we'll definitely work with people. We understand people are struggling this year in a very difficult economy.
(END VIDEO CLIP)
PHILLIPS: And another part of my interview was a real eye- opener. Who should be aware that the IRS is walking you like a hawk? We're going to have that next hour.
It's the troubling question some of you are asking yourselves: Do I have a drinking problem? Some new medical research could help you decide.
(COMMERCIAL BREAK)
PHILLIPS: How much money is in your wallet right now? Are the bills crumpled or in perfect order? Believe it or not, how you handle the cash in your wallet says a lot about your financial personality.
That's what personal finance experts tell bankrate.com. And here's how they break it down. If you don't know how much money is in your wallet, you're probably afraid to see the reality of your financial situation, and you're a head in the sand type of person. If your wallet is empty, you may be making money, but you have no idea where it's going. And you may be frustrated by an inability to stop spending. We've got more categories for you coming up.
(COMMERCIAL BREAK)
PHILLIPS: Well, it's a staggering figure. An estimated 23 million Americans struggle with some sort of addiction. Alcohol is the most common. But how do you know when your drinking habit has crossed over to an addiction? As Chief medical correspondent Dr. Sanjay Gupta explains, two simple questions could help you decide.
(BEGIN VIDEOTAPE)
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: One thing I can tell you about alcoholism and alcohol abuse is that the thinking has changed to some degree lately. It used to be considered that either you're an alcoholic or you're not, that there's this bright line between the two.
We now know it's really more of a continuum. There are the hardcore alcoholics, there are problem drinkers at the other end of the spectrum and it's sort of vague in the middle.
I think what's even more fascinating is that, acording to the National Institute on Alcohol and Alcohol Abuse, they're taking it even a step further, saying with a single screening question, they can do a pretty good job at identifying who is likely to cross over into the more alcoholic sort of frame of reference here.
Take a look at these questions. For men, for example, they say on any given day in the past year, have you had more than four standard drinks? OK, think about that for a second. Also look at the question for women: On any given day in the past year, have you had more than three standard drinks?
Now, you're listening to these questions, and perhaps you're saying, yes, I fall into this category. No, I don't. Here's the point, according to this particular institute, is that if you do fall into the category, you're going to be flagged, or you could be flagged. You're going to fall into almost the highest one-fifth, or 19 percent of people who are likely to have some sort of addiction to alcohol or have alcoholism later on.
Again, the idea is this. After studying 43,000 people and coming up with this screening question that you can start to identify people early on, even in their doctor's office or general practioner's office, to get a sense of who's likely to have trouble later on. They even have these videos they put together for doctor's offices using actors. Take a look at what they have.
UNIDENTIFIED FEMALE: Do you think I'm an alcoholic?
UNIDENTIFIED MALE: Based on what you said, you do have signs of alcohol dependence. Your depressed mood, insomnia and fatigue may well be caused by your heavy drinking. GUPTA: So, the point again is that a lot of addiction can be caught early, can be caught in doctor's offices with training, simple training like the training that you're seeing there.
Now, throughout the rest of the week, I'm going to be talking about what has become some of the best treatments for addiction. Now, as you might imagine, this is a controversial point. There are hundreds of millions of dollars poured into this, both in treatment and in terms of diagnosis, as well.
How do you figure out what's best going to work for any given individual? There are some things that surprise me as we were working on this documentary. First of all, again, there is not this bright line between addict and non-addict. And there is sort of this gray area, this vague, nebulous area.
But also, it used to be thought that once an alcoholic, always an alcoholic. And that thinking seems to not ring true anymore, either. There are a lot of people who seem to get better on their own even without treatment. How do you identify those people? What makes them more likely to get better versus other people. What makes them less likely to pass it on to their kids or their grandkids?
This is a fascinating special we've been working on. We're going to have a lot more throughout the week and certainly this weekend as well. Back to you.
(END VIDEOTAPE)
PHILLIPS: Well, Dr. Sanjay Gupta will continue his look at addiction this weekend. He's going to profile a mother, a writer and a student, all addicts. Could their brains hold the key to their addiction? That's Saturday and Sunday night, 8:00 Eastern.
(COMMERCIAL BREAK)
PHILLIPS: Well, they say crime doesn't pay, but the recession means some criminals will. Tomorrow, the jail in Richmond, Virginia is going to start charging inmates $1 a day for their stay. The daily fee is expected to help offset the cost of housing and feeding inmates, which averages out to about $46 a day per inmate.
(BEGIN VIDEO CLIP)
SHERIFF C.T. WOODY, RICHMOND, VIRGINIA: The dollar a day will bring us anywhere between $200,000 to $300,000 per year that we will be able to do some things that will better the conditions here for the residents that actually stay here.
(END VIDEO CLIP)
PHILLIPS: Well, Virginia lawmakers have allowed sheriff's departments to charge inmates for their jail time since 2003. Some jails are now allowed to charge inmates up to $5 a day.
All right. Earlier, we asked you or if you would -- or if you would spend your tax refund -- how you would spend your tax refund. Here's some of those e-mails. Eddie writes, "I will spend my refund on hardwood floors in my home. I am married with no kids in Washington, D.C., not only where they print our money but where they figure out how to spend it."
Hardwood floors, very nice, Eddie. And make sure the dog claws are trimmed as well.
All right, Phillip writes, "I plan to pay bills and put aside what's left in savings." Gerri Willis would pat you on the back if she were there, Phil. And Donald says, "I think that you should have some of the refund money, but at the same time, spend some of it. If regular people all started spending money again, the economy would be better."
And Tom in Pearl, Mississippi, he's being practical. He says, "I plan to save my tax refund until after the audit."
How many times have you heard it? I'm going Disneyland. You might not hear it nearly as much this year, though. Not just Disneyland. Aywhere. No tax refund, no money, no mouse. We're going to take a look at delayed vacations -- delaycations, coming up next hour.
Plus, the kids are U.S. citizens. Mom and Dad are not. Part of the evolving picture of immigrants in America.
(VIDEO CLIP -- "CADDYSHACK")
PHILLIPS: This brought back memories for all of us. Just like in "Caddyshack," but in this case, the enemy is varmints. Ground squirrels in Spokane, Washington are being blasted to death by something called the Rodenator Pro. Well, the city says that the squirrel population is so out of control, the animals are harming plants at the Arbetorium (ph).
And so, the Rodenator pumps propane and oxygen into ground squirrels' tunnels and then detonates. City officials say it's the most humane way to do it, but some residents are horrified, and the local humane society is now investigating.
Well, the EPA is looking for ways to kill stuff, too. No controversy here, though. The agency is holding the first-ever National Bed Bug Summit today and tomorrow in suburban Washington. Bed bugs have made a resurgence across the country in apartments, dorms, even swanky hotels. And not many pesticides are both effective and safe to use on mattresses. And just FYI, the summit is free and open to the public, just in case you're itching to go.
Thanks but no thanks. That's what some mayors on the Hurricane Katrina-battled Mississippi Gulf Coast are saying about the government's big stimulus package. We're going to find out why.
But first, what's in your wallet? Well, you might want to check, because it could say a lot about how you handle your finances. That's the word from financial experts contacted by Bankrate.com. If all of your bills in your wallet are lined up from largest denomination to smallest, you have an idea of how much money you have at all times, and you know how much is available to spend. Now, if the bills are crumpled and in no particular order, and there's loose change in the bottom of your pocketbook, you probably don't care much about finances.
(COMMERCIAL BREAK)
PHILLIPS: Well, across the country, mayors are trying to come up with ideas for so-called shovel-ready projects. They're hoping that some of that huge government stimulus money will come their way. But on the Mississippi Gulf coast, slammed by Hurricane Katrina, mayors are worried that the stimulus bill will be another headache they don't need. Here's Drew Griffin with CNN's special investigations unit.
(BEGIN VIDEOTAPE)
DREW GRIFFIN, CNN INVESTIGATIVE CORRESPONDENT (voice-over): In Moss Point, Mississippi, Mayor Xavier Bishop has worked in this battered trailer ever since Hurricane Katrina wiped out city hall.
MAYOR XAVIER BISHOP, MOSS POINT, MISSISSIPPI: This is not too unlikely an experience of homeowner who were displaced after the storm.
GRIFFIN: He thought he had money to rebuild, $20 million from FEMA. He's had a plan. Just can't cut through the bureaucracy. The latest issue: $70 million already spent on emergency road repair. FEMA officials say it's no lon longer their problem. Moss Point must reapply to the state Department of Transportation.
BISHOP: Oh, and there's no guarantee they have that $70 million, so you could very well be left out in the cold.
GRIFFIN: Drive 15 minutes west on the Mississippi Gulf Coast, Ocean Springs Mayor Connie Moran is tangled in red tape, too.
MAYOR CONNIE MORAN, OCEAN SPRINGS, MISSISSIPPI: It was approved several years ago, but just going through the bureaucratic red tape is what's holding us up.
GRIFFIN: Ocean Springs wants to turn this railroad depot parking lot into green space. Simple? Hardly. Burying utilities took a year and a half to approve.
Now, both mayors still trying to spend Katrina money...
OBAMA: There you go.
GRIFFIN: ... are being asked to submit new ideas for President Obama's stimulus money. But projects need to be shovel ready.
(on camera): When you hear the term shovel ready, what do you think? Honestly.
MORAN: I said, just get out of my way.
GRIFFIN (voice-over): Mississippi has been shovel ready since Katrina struck, but $1.6 billion in disaster relief is still unspent. You wouldn't think that would be hard for towns like Ocean Springs, but just to build this pier took years. The final federal hurdle, a sonar test to make sure a 17th-century French ship wasn't underneath.
(on camera): Wait a minute. They wanted to see if there was a pirate ship or something down in there? Couldn't you just look down?
(voice-over): So, when Mayor Moran applied for new federal stimulus money, she picked easy stuff: Tear down this fence and clear up this drainage ditch.
(on camera): When's the shovel coming here?
MORAN: In September. Six months. That's how long it'll take to get all the contracts through MDOT and Federal Highway Administration.
GRIFFIN (voice-over): Back in Moss Point, Mayor Bishop is using the shovel-ready criteria and setting his stimulus sights low too. He's come up with a small repaving job.
BISHOP: I feel like I'm going to miss out if I don't do something, and yet what I do is not going to hit the mark.
GRIFFIN (on camera): On a perfect example, it's the difference between fixing a pothole and fixing a problem. Moss Point has open ditches on the side of its roads. The mayor would like to cover them up and put in actual sidewalks, but that would take too long for the politics, he says.
Sounds like what you're telling me is what qualifies is, what can you do to show me a guy with an orange vest and a broom tomorrow.
BISHOP: Yes. Exactly.
GRIFFIN: Whether he's sweeping the right street or not.
BISHOP: I fear that a certain amount of this stimulus package, and I hesitate to say how much, albeit I would certainly say a small amount, has to do with appearances, and certainly giving the appearance that people are being put back to work.
GRIFFIN (voice-over): After years of working in a trailer, mayor bishop says he is just tired of Washington's red tape. He wants his city put back together. The shovels are ready.
(on camera): You've got the shovel, and it's ready.
(voice-over): They've been ready, he says, for 3 1/2 years.
(END VIDEOTAPE)
PHILLIPS: OK. Shovels are ready. We're talking about the red tape. But when you really look at the money and where the money would go, it doesn't look like it's long term but rather a very expensive temp service.
GRIFFIN: It really is. And in these two towns, these two perfect examples, even if they get through the red tape and get those projects, we're talking about a couple of guys, a couple of months' work. And all across the country -- I've been all over looking at the stimulus-money projects, which by the way, the White House says we have 2,000 now projects under way or being funded. They're temporary jobs. And the economists...
PHILLIPS: All 2,000.
GRIFFIN: These are 2,000 road projects. We're basically talking about transportation money. That's the first stimulus that was able to get out there and get out there quick. So, the stimulus money goes to the states. The states send it to the, quote, "shovel-ready" projects. Well, you pave a road, the road's done, the work's over.
PHILLIPS: And now we're talking about a second stimulus?
GRIFFIN; There was talk about the second stimulus. It didn't get much play in Congress. It got shut down pretty quickly. Everybody is saying, let's wait and see if this stimulus works. We heard from the president today, saying there are signs it is working, there's hope it is working, but we're not really seeing any budges in the job and unemployment figures.
PHILLIPS: So, you're still looking for the signs.
GRIFFIN: I'm looking everywhere I can for the signs. And even on the road projects where we go, the state department of transportation are saying, you know, West Virginia, look, this is going to be 30 jobs for about the next four months, whether it's in Missouri, this will probably be 40 jobs for the next two or three months. Nothing is long-term economic growth, the kind of job that you're going to have next year.
PHILLIPS: All right. We'll look for part two of your piece. Thanks, Drew.
