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Anger Brewing Over Taxes, President Obama Announces Tax Reform; Another U.S. Ship Attacked by Pirates; Banking Giants Big Problems; Save Energy, Save on Taxes; YouTube Carnegie Hall Concert
Aired April 15, 2009 - 11:57 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: It is Tax Day, and President Obama is using the occasion to highlight his plans for your taxes. He is expected to outline what the administration is doing to provide tax relief for working families. The president also expected to talk about efforts to reform the tax code. We will have live coverage of his remarks from the Eisenhower Executive Office building in minutes right here in the CNN NEWSROOM.
New measures of the recession to tell you about today. The Labor Department says consumer prices inched down a bit in march, just a tenth of a percent over the last 12 months. Prices are down four- tenths of a percent. The first annual decline since 1955.
One more number to share with you. The Federal Reserve says factory output tumbled 1.5 percent in March. Factory capacity is at its lowest level since records began back in 1967.
No time to waste for tax procrastinators. Today is the day, April 15th,Tax Day. CNN has special coverage all day, your taxes, the real deal. Lots of last-minute advice for you. For starters, you've got until midnight to file your 1040 or ask for an extension. If you're e-filing hit send before midnight local time or find a late night post office to get your return postmarked before the deadline.
They're angry over high taxes and runaway government spending. Thousands of Americans are throwing tea parties today. Crowds have jammed parks, for the most part, town squares, neighborhoods. These protests inspired by the original tea party in Boston 1773. Rallies are planned for more than 700 towns and cities across the United States. They came together over the last two months largely through Internet activism.
Let's get to CNN's Mary Snow watching the crowd in Boston.
Mary, any more activity at your location than what we saw last hour?
MARY SNOW, CNN CORRESPONDENT: Yes, there is, Tony. A rally getting under way here.
We're in a park across from the state house. And as you can probably see behind me, a crowd has really started to fill in as the speakers have started to talk to the crowd.
There is one big message, a unified message here, Tony. As you mentioned, this is about taxes, but protesters here are saying this is much more about just taxes. And you can see that it in some of the signs.
Some of the signs out here today saying "No Socialism." There are also signs protesting the stimulus bill. I talked to one protester here who said he felt that the government should let the banks fail. A lot of the people I've been talking to describe themselves as conservatives, Libertarians, Independents, saying, as you mentioned, they heard about this on the Internet, and they started -- they decided to come down here today.
There's also going to be though a reenactment. You mentioned the original Boston Tea Party in 1773. There are people here in colonial costumes. There will be a reenactment later today in the Boston Harbor, where, actually, people will be dumping crates of tea into the water -- Tony.
HARRIS: Hey, Mary, let me ask you -- I'm just trying to at least assess the mood at your location. It may be different elsewhere around the country at these events, but I'm wondering, what are you hearing more, anger, more frustration with the tax code?
SNOW: A lot of frustration. And the bottom line message for a lot of the people here are saying that they are worried about...
HARRIS: Mary, I apologize. I have to cut you off. I apologize. The president is speaking now.
Let's go to the president.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: All right. Good morning.
I decided not to bring Bo today, because he stepped on my economics speech yesterday.
(LAUGHTER)
Good morning.
I know that April 15th is not exactly everyone's favorite date on the calendar. But it is an important opportunity for those of us in Washington to consider our responsibilities to the people who sent us here and who pay the bills. And I've brought some friends of mine who sent me here and pay the bills.
Across America, families like the people who've joined me have had tough choices forced upon them because of this economic downturn. Many have lost a job. Many are fighting to keep their businesses open. Many more are struggling to make payments, to stay in their home or to pursue a college education.
And these Americans are the backbone of our economy, the backbone of our middle class. They're the workers, the innovators, the students who are going to be powering our recovery. And so, their dreams have to be our own. They need a government that is working to create jobs and opportunity for them, rather than simply giving more and more to those at the very top in the false hope that wealth automatically trickles down.
And that's why my administration has taken far-reaching action to give tax cuts to the Americans who need them, while jumpstarting growth and job creation in the process.
We start from the simple premise that we should reduce the tax burden on working people, while helping Americans go to college, own a home, raise a family, start a business and save for retirement. Those goals are the foundation of the American dream, and they are the focus of my tax policy.
First, we passed a broad and sweeping tax cut for 95 percent of American workers. This tax cut was a core focus of my campaign, it was a core component of the American Recovery and Reinvestment Act, and it is the most progressive tax cut in American history. And starting April 1st, Americans saw this tax cut in the extra money that they took home with each paycheck.
Make no mistake: This tax cut will reach 120 million families and put $120 billion directly into their pockets, and it includes the most American workers ever to get a tax cut. This is going to boost demand and it will save or create over half a million jobs.
And the Congressional Budget Office has found that tax cuts like these for American workers are more than three times more effective in stimulating recovery than tax breaks for the very wealthiest Americans.
This tax cut also keeps a fundamental promise: that Americans who work hard should be able to make a decent living. It lifts more than 2 million Americans out of poverty, and together with the child tax credit, it ensures that a working parent will be able to support their family.
Second, we are helping small businesses keep their doors open so they can weather this economic storm and create good jobs. Instead of the normal two years, small businesses are now allowed to offset their losses during this downturn against the income they've earned over the last five years. This could provide a record number of refunds for small businesses, which will provide them with the lifeline they need to maintain inventory and pay their workers.
Third, we are helping Americans get the education they need to succeed in a global economy. For years, we've seen the price of tuition skyrocket at the same time that it became more and more important to earn a college degree.
And that's why we are making college more affordable for every American that needs a hand. That is why we are committed to simplifying the student loan process so more families can get the help they need.
And that's also why our $2,500 tax credit for all four years of college will help us reach a goal that will help our country lead in the 21st century. By 2020, Americans once again will have the highest proportion of college graduates in the world.
Fourth, we are helping more Americans purchase homes that they can afford. Just as we must put an end to the irresponsible lending and borrowing that created the housing bubble, we must restore the home as a source of stability and an anchor of the American dream.
That's why we're providing a tax credit of up to $8,000 for first-time home buyers, which will put a home within reach for hard- working Americans who are playing by the rules and making responsible choices.
And, by the way, there are at least a couple of folks here who have already used that $8,000 credit. And I think it's wonderful to see that this is already prompting some willingness for people to go ahead and make that first-time purchase, where they thought, maybe, it was out of reach before.
Fifth, we know that tax relief must be joined with fiscal discipline. Americans are making hard choices in their budgets, and we've got to tighten our belts in Washington as well.
And that's why we've already identified $2 trillion dollars in deficit reductions over the next decade. And that's why we're cutting programs that don't work, contracts that aren't fair and spending that we don't need.
We're also doing away with the unnecessary giveaways that have thrown our tax code out of balance.
I said this during the campaign. I'm now saying it as president: We need to stop giving tax breaks to companies that stash profits or ship jobs overseas so that we can invest in job creation here at home.
And we need to end the tax breaks for the wealthiest 2 percent of Americans, so that people like me, who are extraordinarily lucky, are paying the same rates that the wealthiest 2 percent of Americans paid when Bill Clinton was president.
Finally, we need to simplify a monstrous tax code that is far too complicated for most Americans to understand, but just complicated enough for the insiders who know how to game the system.
So I've already started by asking Paul Volcker and my Economic Recovery Board to do a thorough review of how to simplify our tax code, and to report back to me by the end of this year.
It's going to take time to undo the damage of years of carve-outs and loopholes, but I want every American to know that we will rewrite the tax code so that it puts your interests over any special interests. And we'll make it easier, quicker and less expensive for you to file a return, so that April 15th is not a date that is approached with dread every year.
Now, I just had a conversation with these wonderful Americans, and like people I talked to all across the country, they're not looking for a free ride. Every single person here is working hard and deserves a chance to get ahead.
You know, they're a family like -- families like the Kirkwoods, who just want to own their own business and put away some money away for their kids' college tuition. They're workers like Clark Harrison behind me, who's worked hard and wants to be able to purchase that first home. They're business owners like Alan Givens, who wants his company to sustain itself through bad times as well as the good.
And I was encouraged to hear that Alan's business is going strong on a whole bunch of clean energy measures that he's helping to -- to promote in his area.
For too long, we've seen taxes used as a wedge to scare people into supporting policies that actually increased the burden on working people instead of helping them live their dreams. And that has to change, and that's the work that we've begun.
We've passed tax cuts that will help our economy grow. We've made a clear promise that families that earn less than $250,000 a year will not see their taxes increase by a single dime. And we have kept to those promises that were made during the campaign.
We've given tax relief to the Americans who need it and the workers who have earned it. And we're helping more Americans move toward their American dream by going to school, owning a home, keeping their business and raising their family.
So on this April 15th, we're reminded of the enormous responsibility that comes with handling people's tax dollars and we're renewing our commitment to a simpler tax code that rewards work and the pursuit of the American dream.
And I just, again, want to personally thank all of the families and folks who've joined me here today, because they inspire me to do what I do every single day.
All right?
Thank you, everybody.
HARRIS: There you have it. President Obama making remarks about restoring fairness to the tax code, also providing tax relief to working families.
We want to drill down on some of the key points of the president's tax plans and what it all means to you. And that's the important piece of this.
Christine Romans of our CNN Money team live from New York.
Christine, what is the president trying to accomplish with this plan? And then maybe we can get to a bit of the politics of it.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, he's trying to take a little bit of the heat, the smoke and... HARRIS: Oh, you jumped right to the politics. That's what you just did.
ROMANS: That's what he's trying to do.
HARRIS: Really. I think you're right about that.
ROMANS: I mean, come on, there are these little tea party rallies all over the place. He's trying to remind people, look, I'm lowering taxes for the vast majority of working families. And, you know, he doesn't say he's raising taxes on the rich. You know, they're very careful about the language.
They say they're returning the tax rates for the wealthiest Americans, like me, he said, to what they paid under Bill Clinton, a time, remember, when the economy was booming. So the president out there on Tax Day trying to say, you know, look, we're accountable for the bills -- you pay the bills, you, the American people. It's Tax Day, you're settling up the bills with the government today, and this is what we're doing with your money.
So, this, to me -- I don't know about you, Tony, but this feels like this has been the playbook from the president the last few weeks. He's speaking directly to the American people, don't you think?
He's bypassing the sound bites and the media. He's bypassing the political process in Washington. He's just trying to talk to the American people.
HARRIS: And I think you're absolutely right. It was the question I posed to Kate Bolduan last hour.
Look, on a day when we've got these pictures -- and feel free, Roger (ph), to put those pictures up again -- of these rallies all across the country, people frustrated and angry about the tax system in this country, the president, it seems to me -- there wasn't much there in that statement with the president, but he wanted to make sure that his point of view, his administration's message on taxes, was heard in this chorus today.
ROMANS: You know, and one of these things these people that you're seeing are angry about, some of them are not necessarily angry, Tony, about the taxes they paid today. They're angry about what they perceive could be dramatically higher taxes and lower services down the road when you look at how much money we're spending on the deficits and the like here that they are running.
And the president has been pretty clear. He says that economists on the right and left, and he's right about this, many economists of all stripes agree this is the time to be spending to fix the economy. Otherwise, the declines in revenue are even worse down the road.
You know, I mean, it's kind of a Hobson's choice, as they say, but some of these people are very concerned about what they think is happening down the road, that we have just gotten drunk on spending in the government and that, you know, that someday we're going to have to pay for this. That we're taxing our children.
HARRIS: Right. Terrific. Christine, thank you.
ROMANS: Sure.
HARRIS: All right. Who pays federal income tax? You might be surprised at how many people don't have to pay at all.
Here is what you do. Just log on to CNNMoney.com for more coverage of "Your Taxes: The Real Deal."
Another U.S.-flagged ship has been attacked by pirates. We will get an update from the Pentagon and Chris Lawrence in just a couple of minutes.
(COMMERCIAL BREAK)
HARRIS: A second U.S. ship attacked by pirates near the Horn of Africa. This time, the pirates fired rocket-propelled grenades and automatic weapons at the freighter.
One crew member sent an e-mail to his mother telling her about the attack as it was happening. She talked about it on CNN's "AMERICAN MORNING."
(BEGIN VIDEO CLIP)
KATY URBIK, SON'S U.S. SHIP FIRED ON BY PIRATES: My heart started pounding. I had this, "Is this really happening?" kind of moment. I really thought he might -- I was waiting for the next line to say "Just kidding" or "LOL" or something like that, because that's kind of his sense of humor. So it was just one of those, you know, hit you between the eye moments of this is reality right smack in my face.
HARRIS: Live now to our Pentagon Correspondent Chris Lawrence.
And Chris, what can you tell us about how United States forces are responding to the pirate threat?
CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT: Well, right now, Tony, we know that the ship, the Liberty Sun, is heading back to Mombasa. And we know the USS Bainbridge is sailing next to it, keeping a close eye on it.
They're reluctant to talk about exactly where it is and exact arrival times with everything that's been happening over the past few days. But I spoke with a defense official this morning who said, you know, the U.S. is putting a lot of emphasis on combating these pirates, although he did say right now there are no plans to try to put U.S. troops on some of these commercial ships.
This was a very brazen attack in which the pirates used automatic weapons, they used grenades. That crew member whose mom we just heard from, he wrote that e-mail saying we barricaded ourselves in the engine room. They penetrated the hull, but it's a small hull, and we think the ship is going to be OK.
HARRIS: Hey, Chris, what about the reports that pirates specifically targeted this American freighter for revenge, not for the ransom, but to destroy it?
LAWRENCE: Yes, that is the claim being made by some individual pirates allegedly to some organizations. I asked another defense official about that, and he told me, you know, their intent doesn't change how we respond. He said the pirates can frame it any way they want to, but certain actions are going to bring a certain response.
He also questioned whether some of these individual pirates who are making these statements are really speaking for a larger group, and if revenge was really the actual motivation. He said, you know, that's easy to say now after they were turned away and were unsuccessful.
HARRIS: Yes, that's a good point.
All right. Chris Lawrence at the Pentagon for us.
Chris, appreciate it. Thank you.
LAWRENCE: You're welcome.
HARRIS: The pirate attack on the Liberty Sun prevents the captain of the Maersk Alabama from reuniting today with his crew. Captain Richard Phillips is aboard the USS Bainbridge, as Chris just mentioned, which is now escorting the Liberty Sun to Mombasa, Kenya.
Phillips' crew left that port city today. The men are heading home. They will arrive at Andrews Air Force Base tonight. Captain Phillips will follow on a later flight.
Drug violence is one of the most visible issues along the U.S./Mexico border. We will get a look at what's on the president's agenda as he visits this important ally south of our border.
(COMMERCIAL BREAK)
HARRIS: Tomorrow, President Obama meets with Mexico's president, Felipe Calderon in Mexico City. The two pledging to work together like never before to stop drug-related violence and weaken the cartels.
Former Mexican president Vicente Fox discussed the trip earlier on CNN.
(BEGIN VIDEO CLIP)
VICENTE FOX, FORMER PRESIDENT OF MEXICO: Obama can have a very safe trip to Mexico, and hopefully renew the optimism that will be raised on working together, because this is a joint responsibility. Mexico's putting in a big effort to cut the supply of drugs to youth in this huge, mammoth U.S. consumer market of drugs.
(END VIDEO CLIP)
HARRIS: "Huge, mammoth market of drugs."
OK. Let's bring in CNN's Kate Bolduan in Washington.
Kate, a couple of questions for you.
Another move in the United States today to target border security. What am I hearing behind you? Is that rain?
KATE BOLDUAN, CNN CORRESPONDENT: This is rain.
HARRIS: Is that rain in D.C.?
BOLDUAN: It's pouring here, Tony.
HARRIS: Sorry. It's just a little distracting.
We're expecting an announcement today of a border czar. What can you tell us about this?
BOLDUAN: Yes. So we're expecting to hear -- administration officials tell us that Homeland Security Secretary Janet Napolitano, while touring the border, will be announcing a new border czar, Alan Bersin. He's a former Justice Department official, also held a similar post under the Clinton administration. It went under a different title, Southwest Border Representative.
And a huge job he is going to have. I mean, you talk about a border czar, his job is basically to advise the secretary and deal with these mammoth issues, illegal immigration, and the drug-related violence that has just exploded along the border.
So far, we know that the administration has already promised additional aid in that area, sending hundreds of federal agents down to the border, beefing up law enforcement presence there. But this gentleman has a big job ahead of him.
HARRIS: Yes. Hey, anything interesting in the timing of this announcement?
BOLDUAN: Yes, it is pretty interesting timing when you think about it. As you mentioned, the president is going tomorrow down to Mexico to meet with the Mexican president, Felipe Calderon. Obviously, this will be a topic, border security. And then from there, the president heads to the Caribbean to talk to leaders of the region on broader issues, the economy and things like that.
But another interesting timing note, the president, just earlier this week, announced some relaxing on our policies towards Cuba, specifically travel back to the island for Cuban-Americans and remittances, money that can be sent back. And we know that Cuba -- or U.S. policy toward Cuba -- will be a topic down at the Summit of the Americas.
HARRIS: OK. Kate Bolduan at the White House in the rain. Loud.
All right, Kate. Good to see you. Thank you.
BOLDUAN: I know. I'm sorry.
HARRIS: You know, the epicenter of this bloody drug war is just across the border from El Paso, Texas. Officials say many people in Juarez, Mexico, turn to gangs because of severe poverty.
In a CNN exclusive, our Karl Penhaul rode with Mexican police and talked with those who do the cartel's dirty work.
(BEGIN VIDEOTAPE)
KARL PENHAUL, CNN CORRESPONDENT (voice-over): The police radio crackles. Shots are being fired downtown. A city cop asks these transvestite prostitutes if they heard. "Six shots," they say, "a few blocks away."
It's midnight in Juarez, dubbed Mexico's most dangerous city. The gunmen seem to have faded away, so the patrol heads up into gangland, the hillside slums that ring Juarez. "We're arresting gang members before they get together because then there will be killings," he says.
Police say there are a thousand gangs in the city. They go by names like The Skulls, The Sharks, The Aztecs and The Artist (ph) Assassins. They peddle cocaine, crack, and heroin, and fight gun battles for turf. The gangs, too, have become a recruiting ground for narco-traffickers looking to hire hit men.
"Organized crime recruits from these gangs. There's evidence they come and choose the most dangerous members," the captain says.
Captain Pinedo and his men on the anti-gang patrol know the labyrinth of alleyways by heart. They pull suspected gang members out of vehicles, even sniffing their fingers to see if they've been using drugs.
"A lot of them don't have any I.D. And they look like gangbangers," he says. They get a tip off another gang is gathering.
The police trucks kick up a dust storm. Heavily armed and masked to protect themselves from revenge attacks, these cops are cracking down hard tonight. They know they have little hard evidence, but they hope even briefly detaining suspected gang members will help cut the number of shooting deaths.
For the last year, Juarez's best-selling newspaper has been filled with gory photos of drug war hits as the lower (ph) cartel battles for the Juarez mob's trafficking routes. Bodies hanging from a bridge, other victims stuffed into cooking pots, another murdered and his face covered with a pig mask. Police say many of the victims have been young gang members recruited as cartel foot soldiers. We head back into a Juarez neighborhood, this time with (INAUDIBLE) to try to discover why young men are being lured by the drug mobs.
This small gang calls itself Below 13. None of its members seem to know why. "Sure, we fight, we have punch-ups, throw rocks, and shoot at other gangs," he says. They're quiet tonight, just kicking a football.
The few who say they work earn less than $50 a week in assembly plants. The cartel war now raging, it offers a chance of quick money.
"Some of the gang members here have joined organized crime groups and some are in prison because they were busted for selling drugs," this young man tells me. He knows working for the cartels can mean a short life expectancy.
"Of course, it's easy money because you can earn serious cash, but it's dangerous, too. Like they say, ,it's easy money until they kill you," he says.
Sixteen hundred people died in drug cartel killings last year in Juarez, but in this neighborhood there's little sense the war will end.
"Thank God we're alive. We're going show all the hit men that Juarez is number one," he boasts. Fighting talk that bodes of more untimely deaths.
Karl Penhaul, CNN, Juarez, Mexico.
(END VIDEOTAPE)
HARRIS: Boy, what a report.
The president and his team are talking about glimmers of hope on the economic front. What's the take in Great Britain?
It is Richard Quest time coming up in the CNN NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: Three hours into the trading day. Let's check out the big board. The New York Stock Exchange. As you can see, the Dow in positive territory after two down sessions in a row. The Dow up 48 points. The Nasdaq -- talk about a mixed picture today. The Nasdaq is down 16. Intel with some wobbly earnings numbers. The report came out yesterday perhaps providing a bit of a drag on the tech-heavy Nasdaq markets.
We're following the markets all day for you. Susan Lisovicz in the CNN NEWSROOM.
Word today of more pink slips. The Los Angeles Board of Education has voted to lay off as many as 4,500 teachers and support personnel. The exact number of cuts still to be determined. And Switzerland's largest bank, a behemoth, is slashing nearly 9,000 more jobs. UBS has already announced more than 2,000 jobs cut this year. Most of the job losses are in the company's investment bank unit, hit hard by the mortgage meltdown.
So why don't we do this. Let's dig a little deeper into the problems facing UBS, because it is a huge bank. Our Richard Quest joining us live from London.
It is Richard Quest time in the CNN NEWSROOM.
Everything OK in your world, Richard?
RICHARD QUEST, CNN CORRESPONDENT: Well, yes, I don't work for UBS and I pity the people who do work for UBS. Some 9,000 jobs are to go. And, of course, that comes on top of the 10,000, 11,000 that the bank has already got rid of.
HARRIS: Yes.
QUEST: But the reason, Tony, the reason we understand, if there was anything nasty in the financial world to invest in, UBS was in it up to their eyes. Whether it be exotic, (INAUDIBLE), or it be nasty subprime mess, UBS thought they were being clever and consequently have got themselves in it so far and so deep that they've lost senior management and, frankly, are going to have some years before they get out of it.
HARRIS: Don't you hedge on this story, Richard. Tell the truth about why investors are pulling billions of dollars out of UBS. There is a lot more going on with UBS right now than this story of toxic assets on the books.
QUEST: Well, UBS is also in trouble because, of course, it has agreed to hand over 300 names to the U.S. authorities, the secrecy bit. People invest in the United -- people invest in banks like these Swiss banks because, of course, they have secrecy. They evade tax, or at least some people do. And what the bank has now done is its agreed to pay some fines, to pay some penalties and hand over some money to the U.S. -- hand over some names, I should say, to the U.S. UBS is the first chink in the wall of the armor that's going to collapse on the secrecy issue.
HARRIS: And that was lovely, Richard, but the truth of the matter is, UBS has been a tax haven for years and you know it.
QUEST: Oh, stop. No. No.
HARRIS: And that gravy train is coming to an end. The U.S. Treasury needs the money. Americans have hid from the tax man, hello, Tax Day, and UBS is under intense pressure to settle even more of these allegations that it did what? Defrauded the U.S. tax system.
QUEST: I just sometimes wonder where you get this garbage from because clearly whatever you're reading, you need to upgrade the level of it. The truth of the matter is, Tony, that this tax haven issue that the G-20 keeps banging on about . . .
HARRIS: That's right.
QUEST: Is the biggest red herring that you've ever seen. You tell me what difference it makes whether it's little Liechtenstein, Luxembourg or Switzerland. Yes, there are some people who evade or avoid taxes.
HARRIS: That's right.
QUEST: But it is not the issue that you wish to try and obfuscate over.
HARRIS: All I'm suggesting is, please, let's take care of the low hanging fruit. Let's wipe out these tax havens. Let's take care of the low hanging fruit because we know there are deeper, more entrenched problems if we're going to ultimately turn this system around.
QUEST: By all means, look at tax havens. But when I see people raising the red flag of tax havens up like this, I start to ask myself, what are they really wanting to avoid? And what they're wanting to avoid is the really nasty mess of the people who really -- now, UBS, of course, is going to have to hand over more names. Whether it's 500, 5,000, the days of having a Swiss bank account, and we don't know whether you've got one, Tony.
HARRIS: So, Richard, one last question because I'm running out of time here. What's been the overseas reaction to the president's glimmers of hope speech yesterday since many in Europe blame the United States for this economic downturn? Hello, UBS.
QUEST: I mean, yes, well, the reality is, you call it glimmers of hope. Over on this side of the Atlantic, we have another phrase. We call it the green shoots of recovery.
HARRIS: Yes. Yes.
QUEST: So everybody's in the garden looking for the green shoots. I see no glimmers of hope. I mean the reality is, we are talking about such small glimmers, such scintillas of evidence. I've said this before, I'll say it again, perhaps you'll like to listen this time, Tony, it's going to be several more months before we see any substantial or realistic signs that this thing is turning around.
HARRIS: There he is, the man, Richard Quest from London with us in the CNN NEWSROOM.
Richard, thank you so much.
The Obama team latching onto the idea, Richard, of glimmers of hope in the economy.
You heard it from the president in his speech yesterday and from the Federal Reserve chairman, Ben Bernanke. The president of the Dallas Federal Reserve spoke to CNN in Hong Kong about efforts to unfreeze credit markets and to get the economy moving.
(BEGIN VIDEO CLIP)
RICHARD FISHER, PRESIDENT, FEDERAL RESERVE BANK OF DALLAS: What we've done is the credit markets stopped. Credit is the blood flow to the economic body of the economy. Without blood, you can't have muscles work. The muscles are the businesses that create jobs and create our welfare for our people.
UNIDENTIFIED CORRESPONDENT: But we're still seeing some grim economic data that there is some, you know, pretty poor retail sales numbers that just came out over night. Now on top of that, you've been on this speaking tour here in Asia and I think it was in Tokyo you mentioned that you expected to see the U.S. unemployment rate to exceed 10 percent by the end of the year.
FISHER: That's correct.
UNIDENTIFIED CORRESPONDENT: That sounds pretty scary.
FISHER: Yes, that's my forecast. But you have to remember, unemployment's what we call a lagging indicator. Here is the point. We had a very bad fourth quarter. We will probably have a really bad first quarter when the numbers finally came out. That quarter is over. I expect things to get less worse as we proceed through the year.
We're working our hardest to restore the blood flow, the credit, to the economy. There's a lot of stimulus in there by virtue of the stimulus package and the spending that's coming forward from the executive branch in the Congress. These things should help lift the economy once begin, get those engines pumping once more and job creation working once again, but it's going to take some time, as the chairman said and as the president said.
(END VIDEO CLIP)
HARRIS: Well, the president says even though there are signs of progress, more challenges are ahead.
They're going to play Carnegie Hall and it is all thanks to YouTube and all of you who voted on their talents.
(COMMERCIAL BREAK)
HARRIS: Boy, take a look at these pictures here. Tax Day. Tea parties all over the country. A number of them. They're angry over high taxes and run away government spending. Thousands of Americans are throwing these tea parties today. Crowds jamming parks and town squares and neighborhoods. We're looking at pictures from Washington, D.C., Montgomery, Alabama, and Boston.
The protests, obviously, inspired by the original tea party, Boston, 1773. Rallies are planned for more than 700 towns and cities across the United States. Well, they came together over the last two months largely through Internet activism.
And, once again, it is Tax Day. And if you've been energy efficient, you may get some money back from Uncle Sam. CNNMoney.com's Poppy Harlow has our energy fix from New York.
Good to see you, Poppy.
POPPY HARLOW, CNNMONEY.COM CORRESPONDENT: Hey there, Tony.
Well, this morning, when we were speaking with Heidi, we put some questions out there for people to log on to CNNMoney.com, talk to us about energy saving, questions they have when it comes to their taxes.
Here's a section you can go on, Saving on Taxes on cnnmoney.com. We got a question I want to read you from Shelly. Shelly writes us from Florida. Let's pull it up, see here. Here's what Shelly writes. She writes, "can I take off energy efficient upgrades to my home? I was told I can't do it this year, but we had our doors and windows replaced with energy efficient, hurricane impact doors and windows, some in '08, and some in '09. Help."
Well, Shelly, good news, you got the right advice. All right. If you install energy efficient windows or doors or insulation this year or next, you can get up to $1,500.
Let's pull it up on the monitor. I think we have a graphic here we can show you. All right. $1,500 this year or next year. But if you did it in 2008, there's no tax credit available. So as much as we tell you to be energy efficient, you may not get back money for that. Sorry, Shelly. but what you did this year, that will count.
Let's also tell you, though, for the big spenders out there, people that spent a lot on energy efficiency, picture this, $30,000 solar panels on your roof. If you did it last year, you're going to get $2,000 back. So I hope you included that in your taxes for people that did that.
If they're going to do something like this, a big project in 2009 or next year, they're going to get a much bigger increase because the stimulus package lets you write off 30 percent of the cost. And there's no cap on that, Tony. So it would be for $30,000 solar panels, it would be about a $9,000 tax credit. So it gets better and better apparently by the year for people -- Tony.
HARRIS: Yes. Poppy, what about energy efficient vehicles? Anything available?
HARLOW: Yes. Certainly. There's a $3,400 tax credit for hybrids. But there's a catch to this. The full tax credit is only available for the first 60,000 hybrids that a company like Honda or Toyota sells. Then it's reduced and it's phased out.
So what you want to do is go on this website, fueleconomy.gov. You can click on Chrysler, Toyota, Nissan. We pulled up the Honda page here because if you bought a Honda hybrid, those credits have run out by now. If you bought a hybrid by Honda, though, in 2006, 2007, you're going to get a credit of more than $1,400. But it's reduced. If you bought it in the first half of 2008, you get only half that credit. It goes by that.
So, Tony, the lesson learned here is, you can get tax credits for hybrid cars and electric cars, but you want to ask your dealer about it and you want to go on the website, that's now gone, to find out because they're not going to offer up and tell you, hey, you're not going to get the tax credit because we've hit the limit.
HARRIS: I see.
HARLOW: So make sure you ask that.
HARRIS: No, that's great advice.
Poppy, appreciate it. Thank you.
HARLOW: Sure.
HARRIS: Good information.
Do you have any dreams that you have given up on? Imagine finding out one day that that old dream will actually be fulfilled. Tonight at Carnegie Hall, it's happening for about 100 musicians thanks to YouTube.
Our Josh Levs reports.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Hello. I am Fesa (ph) and I play the classical (ph) (INAUDIBLE).
UNIDENTIFIED FEMALE: I started playing the violin when I was five years old.
UNIDENTIFIED MALE: Hello. I am Titos (ph) from Romania and I play Barly (ph).
JOSH LEVS, CNN CORRESPONDENT (voice-over): They're coming from all over the world to live out a dream.
UNIDENTIFIED MALE: I'm coming to Carnegie Hall all the way from Bermuda.
LEVS: Three thousand people submitted audition videos on YouTube. Music professionals chose 200 finalists, then YouTube voters. Ninety-six people from 30 countries will get to fill these seats.
JENNIFER LINDSAY, YOUTUBE SYMPHONY: I'm 28 years old. I work as a systems engineer for a government contractor out in Los Angeles. There's no other way that someone like me, who's not even a professional musician, would have ever made it to Carnegie Hall. LEVS: Base player Kurt Hinterbichler is working on a Ph.D. in physics. He pulled his base out of the closet.
KURT HINTERBICHLER, YOUTUBE SYMPHONY: There was a lot of rust there, but, you know, I had practiced many years in college and high school before that. Carnegie Hall is still sort of the unofficial pinnacle of achievement for the classical music world. You know, once you've made it to Carnegie Hall, you've really made it.
LEVS: It's YouTube's idea mixing classical music with the power of the Internet and a little bit of "American Idol."
ED SANDERS, PRODUCT MARKETING MGR., YOUTUBE: The classical music world was always something that, you know, strives for perfection and it was probably seen as something that was traditional and even outdated and somewhat (INAUDIBLE), but I think this project has gone to show that that's not actually the case. And we hope this is game changing in the sense that it redefines the audition space. It brings people closer together and lets them collaborate, you know, transcending geographical and linguistic boundaries.
LEVS: Google, which owns YouTube, is covering the cost of travel for the winning musicians to come to New York. Now, their moment to shine. They know they'd better be ready.
LINDSAY: Yes, yes, for the past few weeks, my schedule has been work, eat, practice, and sleep pretty much around the clock.
LEVS (on camera): People flying from all over the world. Only have a couple days to become a fantastic orchestra together. Do you think that will be done?
LINDSAY: Oh, absolutely. Do not underestimate the motivational power of playing at Carnegie Hall.
LEVS (voice-over): They also have another incentive. The chance to be led by one of the world's most respected conductors, Michael Tilson Thomas, who had final say on whether they made the cut.
MICHAEL TILSON THOMAS, CONDUCTOR, YOUTUBE SYMPHONY: Get those notes under your fingers, get those rhythms inside of your body and any minute we'll be together and I know it's going to be a really good time.
LEVS: Josh Levs, CNN, Atlanta.
(END VIDEOTAPE)
HARRIS: That's a terrific story.
All right, here's a question for you. Should you borrow against your 401(k)? It's a question many of you are asking. And how can you avoid losing your home if you lose your job? We're getting some answers from The Help Desk.
(COMMERCIAL BREAK) HARRIS: Is it OK to borrow from your 401(k)? And how do you fight foreclosure if you've been laid off? CNN's Gerri Willis is at The Help Desk.
(BEGIN VIDEOTAPE)
WILLIS: We want to get you answers to your financial questions. Let's go straight to "The Help Desk."
Donna Rosato is a senior writer for "Money" magazine and Ryan Mack is the president of Optimum Capital Management.
All right, let's get to that first question, guys. It's from a viewer in New York who asks, "Do you think it's a good to use my 401(k) to pay for graduate school instead of taking out a student loan? Are there penalties and tax implications?"
Donna, everybody's talking about how do I retrain and how do I pay for it?
DONNA ROSATO, SENIOR WRITER, "MONEY" MAGAZINE: It's a good idea to go back to school if - and it's good to educate yourself more, but remember, your 401(k) is for your retirement and you don't want to dip that into that pot now if you don't have to.
Now, if you do have a 401(k), you can borrow from it if you're still employed and you may be able - but if you borrow from it, you're going to have to pay it back, you have to pay it back with interest.
And then if you leave your employer, say you want to go to grad school full-time, you have to pay the whole thing back. Now, if you're talking about - just taking it all out and cashing it out, there are taxes and penalties. You'll pay a 10 percent penalty and you'll pay federal and state taxes, as well.
WILLIS: As much as 40 percent out the door right away. Generally doesn't pay to break into the 401(k) because interest rates on the student loans are so low.
ROSATO: Exactly.
WILLIS: Let's go to Caroline's question. "My brother lost his job in December. He contacted the bank in January to see if he could work out his mortgage when he didn't hear back, he called again and again. Finally, yesterday, he reached someone who told him because he couldn't show an income, besides, obviously, unemployment benefits, he didn't qualify for assistance. Where else can he go for help to avoid foreclosure?"
Ryan, the dirty little secret of foreclosure is that if you don't have an income, you can't get a new mortgage.
RYAN MACK, PRESIDENT, OPTIMUM CAPITAL MANAGEMENT: Exactly. Exactly. Well, the first thing is to get a job. You have to make sure you have some sort of proof of income. Get a part-time job. I mean, go down to your local community center and see if there are jobs available. Ask your local politicians for job listings if they're available.
The major four things we have to do is, first of all, we have to say don't ignore the problem. Go to the mortgage lender with a plan. Know your options - restatement, forbearance, maybe at the end of the day, short sale, that's the last option, but it is a viable option. And finally, stick to the plan. Once you get a plan to come together, stick to it and you should be fine.
WILLIS: All right, guys, great answers. Very good questions, indeed.
"The Help Desk" is about you getting answers. Send me an e-mail to Gerri@CNN.com or log on to CNN.com/HelpDesk to see more of our financial solutions.
And "The Help Desk" is everywhere. Make sure to check out the latest issue of "Money" magazine on newsstands now.
(END VIDEOTAPE)
HARRIS: You know, things are usually very civilized in Minnesota, but the state's Senate race has been anything but. Now a new ad is playing on the radio. Find out who is weighing in on the campaign.
(COMMERCIAL BREAK)
HARRIS: Three hundred and twelve votes. That's Democrat Al Franken's lead over Republican Norm Coleman in the disputed Minnesota Senate race. Coleman is working up an appeal to Minnesota Supreme Court after he lost the latest legal round. That means Minnesota's senator may not take his seat for another two months or more. Democrats are urging Coleman to throw in the towel in this radio ad.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE, POLITICAL RADIO AD: The November 4, 2008, election was conducted fairly, impartially and accurately. Franken received the highest number of lawfully cast ballots in the November 4, 2008, general election for United States senator for the state of Minnesota and is entitled to receive the certificate of election. That's what a three-judge panel said when it declared Al Franken the winner of the U.S. Senate race. Franken won the election in November, he won the recount, and now he's won a legal challenge filed by Norm Coleman, yet Coleman and national Republicans who want to thwart the will of the voters have vowed to file more appeals and hopeless legal challenges that will only result in more delay. Enough is enough.
(END VIDEO CLIP)
HARRIS: Well, Governor Tim Pawlenty, a Republican, must certify the election, and he says he won't do that until all legal appeals run their course.
CNN NEWSROOM continues right now with Kyra Phillips.
KYRA PHILLIPS, CNN ANCHOR: Tony, thanks so much.
We're pushing forward to the very last minute. That would be midnight. The deadline to send in that 1040 form the IRS has been waiting for. We're going to make it less taxing with last minute tips, tea parties, all that coast to coast.
And pushing back at the border. Can a czar win the war against Mexican drugs, black market guns and illegal immigration? We're live in El Paso this hour.
Hello, everyone. I'm Kyra Phillips, live at the CNN world headquarters in Atlanta. You're live in the CNN NEWSROOM.
On April 15th, there are two kinds of taxpayers, those who have filed and those who are scrambling. And if you owe and can't pay, you still have to file. That's the real deal straight from the IRS.
And President Obama admits that this is nobody's favorite
