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Showdown over Tax Cuts; President Obama Back from Afghanistan; Education Makeover; Where the Jobs Are; Senators Fail Two Votes on Tax Cuts; Heating Help for the Winter; "Face to Face" with Katherine Schwarzenegger; Recycling for the Holidays
Aired December 04, 2010 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
T.J. HOLMES, CNN ANCHOR: Well, we're at the top of the hour here once again. Hello to you all. I'm T.J. Holmes. Glad you could with us from the CNN Worldwide Headquarters in Atlanta, Georgia.
We've got a heated battle over tax cuts playing out right now, live on the Senate floor. Yes, senators are working on this Saturday. We'll have a live report from Capitol Hill in just a moment.
Also, if you're looking for work, some economists predict a pickup in hiring over the next few months. Where exactly are those jobs going to be? We're going to tell you this hour.
And re-gifting; it can save you some significant money this holiday season. We'll tell you which presents are most easily re- gifted and what you need to do to make your old gift look brand new. Yes, some people will be doing it.
But we do want to talk this morning first about what we've been keeping an eye on, on Capitol Hill throughout the morning. It's a rare Saturday session. Senators are voting on tax cuts at this hour. Democratic leaders want to end Bush era tax cuts for -- for some. Republicans want actually the tax cuts to be extended for everybody. Not just those who are making less than $250,000 a year for everybody.
However, Democrats, as you know, they're the ones who have been saying we shouldn't give a tax break to those who are rich. The debate is going on and a vote going on, on Capitol Hill.
We have our congressional correspondent Dana Bash, I believe, standing by for us this morning. Dana, wrap up what we just saw a minute ago with that first vote this morning.
DANA BASH, CNN SENIOR CONGRESSIONAL CORRESPONDENT: That's right, T.J.
What we saw is as expected, the Democrats' plan. Their goal to extend just the tax cuts for those making $250,000 or less. That failed in the Senate; it was 53-36. Obviously, getting a majority of the senators, but not enough -- not the 60 that they needed to break what effectively is a Republican filibuster. So that was what -- what we just saw.
What we are seeing right now, it is the second vote that they are scheduled to take for the day. And this is something that's a little bit different. It would extend tax cuts for those making up to $1 million a day. Why are they -- $1 million a year, I should say.
Why are they doing this? The reason is because some Democratic senators starting with Chuck Schumer of New York thinks that politically this is a very good way -- to make their point about Republicans. And their point has been that Republicans just want tax cuts for millionaires. Well, if they -- if this vote fails as well as we expect, expect that rhetoric to continue on and on.
Now, why did Republicans vote against this if Republicans want all Bush era tax cuts to be extended? Well, they argue that the Democrats should not do this, that they should -- that they should allow everything be extended, and that's the reason why they voted against this.
But I can tell you that Democrats, Tony (SIC), that they are -- they have already been arguing and they will continue to argue that Republicans are holding the middle class hostage, and that is why they voted against this.
I think we have some examples and illustration of some of the debate earlier today. Take a listen.
(BEGIN VIDEO CLIP)
SEN. CHUCK GRASSLEY (R), IOWA: We don't need a dog-and-pony show going on, on a Saturday when we ought to be given certainty to the economy.
SEN. CHARLES SCHUMER (D), NEW YORK: We had ten very good years in the '90s. Middle-class incomes increased. Deficit was reduced. The wealthy did well under the previous administration's tax policies. Bush tax policies have been a failure. We should not repeat them.
(END VIDEO CLIP)
BASH: Now, T.J., once these votes are finished and done with, the real story, if you will, will continue and probably be really front and center.
And that real story is negotiations that have been going on between the White House and Democrats and Republicans on how to -- how to deal with the fact that these Bush era tax cuts are going to expire at the end of the year.
And by all accounts, Democratic and Republican sources are telling us that what seems to be on the table is -- is actually extending all of them for two years probably temporarily. And what Democrats have been trying to work on, particularly from the perspective of the White House, is trying to get something in return for that; unemployment benefit extensions and other extensions of other tax cuts that Democrats have championed like college tuition tax credits.
So those are the things that have been going on behind the scenes, and it will accelerate big time once these, frankly, political votes are over.
HOLMES: All right, Dana, we appreciate you keeping an eye on it. Nonetheless, we'll check in with you again as the work continues up there on this Saturday. Thanks so much.
Meanwhile, a new CBS News poll suggests that most Americans favor the Democratic position on extending tax cuts: 53 percent of those surveyed agreed with Democrats that tax cuts should continue only for families making less than $250,000 a year; 26 percent said tax cuts should continue for everybody; 14 percent said all of the tax cuts should actually be allowed to expire.
We've also been standing by this morning waiting to hear from President Obama. He's expected to make a statement at any time on a major new free trade deal between the U.S. and South Korea. The tentative pact strengthens economic ties between the two nations. It also resolves a past dispute over U.S. access to Seoul's auto and beef markets.
If ratified by Congress, again, it would have to be OK'd by Congress, the new deal will eliminate tariffs on more than 95 percent of industrial and consumer goods within five years.
It also calls on South Korea to reduce its tariff on American auto imports from eight percent to four percent. Then that tariff is eliminated altogether after five years. Also the 2.5 percent U.S. tariff on auto imports will remain in place for five years.
Now, President Obama is back home after his unannounced trip to Afghanistan. The Commander-in-Chief spent just a few hours in Afghanistan delivering holiday greetings to American troops there and also promising full support in the war against the Taliban.
Here now, CNN's White House correspondent, Dan Lothian.
(BEGIN VIDEOTAPE)
DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT (voice-over): It was a secret trip the White House says was in the works for more than a month; flying into Bagram Air Base for a little more than four hours to salute the men and women who are carrying out the administration's stepped-up strategy in Afghanistan.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: This part of the world is the center of a global effort where we are going to disrupt and dismantle and defeat al Qaeda and its extremist allies, and that's why you're here.
LOTHIAN: But ahead of a mid-December review what is being called a comprehensive assessment to possibly tweak the president's policy there, challenges remain. There's rampant corruption in the Afghan government, highlighted by leaked state department cables in which Ambassador Carl Eikenberry is said to be concerned about, quote, "How to fight corruption when key government officials are themselves corrupt."
And then there is the continued Taliban threat.
OBAMA: You're going on the offense. I'm tired of playing defense. I'm targeting their leaders. I'm pushing them out of their strongholds.
LOTHIAN: Mr. Obama had planned on flying to Kabul to meet with President Hamid Karzai and visit U.S. Embassy employees. But a storm rolled in with high winds, dust and low cloud cover. So his helicopter trip was canceled, and the Karzai meeting became a 15- minute phone call.
The president did visit wounded troops at a base hospital, awarding five Purple Hearts, and met with members of the 101st Airborne Division who lost six members in a deadly attack earlier this week.
OBAMA: There are going to be difficult days ahead. Progress comes at a high price.
LOTHIAN: 1,300 U.S. troops have been killed in Afghanistan since the war began. This year was especially deadly. The Obama administration plans to start withdrawing troops from Afghanistan in July 2011. And a stable, reliable government there is key to meeting that deadline.
(on camera): As for whether or not those WikiLeaks documents could cause more problems for the Obama administration, one top aide says that they've weathered these kinds of revelations in the past and that there's no secret about the challenges they're facing in Afghanistan, especially when it comes to corruption in the government there.
Dan Lothian, CNN, the White House.
(END VIDEOTAPE)
HOLMES: Well, a first for President Obama. He has granted the first pardons of his presidency, erasing the criminal records of nine people. One of the most notable: Ronald Foster. He's a former Marine who was convicted in 1964 of -- of all things, cutting pennies into dimes to use them in vending machines.
Also on the list: James Bernard Banks, sentenced in 1972 to two years of probation for illegal possession of government property. Also, Laurens Dorsey who was convicted of making false statements to the FDA.
Well, a part of downtown San Francisco is no more. A wrecking ball takes down a decades-old terminal to make way for a shiny new project. We'll tell you what's happening across America. That is next.
It is eight minutes past the hour.
(COMMERCIAL BREAK)
HOLMES: Well, 11 minutes past the hour.
We are keeping an eye on what's happening in the Senate right now. A live look, yes, senators are working on this Saturday. A special session today to take up a couple of measures having to do with those Bush-era tax cuts. Already just a short time ago as expected we saw one measure they were taking up fail. That measure would have extended the Bush-era tax cuts for those people making less than $250,000.
So they're considering another one now that would extend the tax cuts for people making up to $1 million, and then taxes would go up for people making more than $1 million. That is championed by Chuck Schumer of New York. They're going to take that up as well. But that, too, expected to fail.
I want to get you caught up now on some other stories making news across the country. First, San Francisco: wrecking ball slammed into a 71-year-old Trans Bay bus terminal building. You're seeing the destruction, the demolition happening right here.
It's coming down so a sleek new $4 billion terminal built of steel and glass can be built. Some are already calling the new terminal the Grand Central Station of the west.
Let's turn now to Des Moines, Iowa, where an unusual spiritual Christmas nativity scene at a family emergency shelter. This is carved out of butter. The sculpture is part of a fund-raiser for the city's only family shelter helping homeless families.
Also in Staten Island, New York, the mansion do you recognize -- well, maybe not from this shot, but the mansion in the four-acre estate that was used for Francis Ford Coppola's 1972 classic "The Godfather" is up for sale now. And you know the stars, Marlon Brando, Al Pacino, Diane Keaton, James Caan, they spent several weeks there filming. The price tag for the place is $2.9 million.
Let me hand it over and say good morning once again to a good friend, Reynolds Wolf, keeping an eye on the weather situation. And we have a situation, where is that?
REYNOLDS WOLF, AMS METEOROLOGIST: I would say -- well, take your pick. I mean we've got Chicago that's dealing with the snow, Indianapolis, back into Lexington, even parts of the Carolinas before the day is out might see some snowfall especially for tonight in time for the ACC championship game, a football game with snow. And we're not even talking about Green Bay, go figure.
We were talking about some heavy snow that we've been seeing in places like Buffalo over the last couple of days. It looks like the focus of that will be shifting a bit more towards Chicago where this morning right along parts of Michigan Avenue and even parts of 90, the snow has been coming down.
You see a few breaks in the action though, just right through Oak Lawn and Dolton and back towards Woodridge. That will be a very short-lived break as more snow comes in. The snow totals are going to stack up maybe anywhere from one to four inches before the day is out.
For places like Dallas, don't worry about precipitation. Worry about plenty of sunshine. 60 degree is your expected high for Denver and Mile High City, pretty nice there. But if you're heading north towards Cody, Wyoming or even back toward parts of the Grand Tetons, you will get some heavy snow there. Same story also for much of the Sierra Nevada.
But for California, San Joaquin Valley out to the coast, it's all going to be raining. And you'll see it trickle up towards Portland, Oregon where the high will be 43 degrees for the day.
Fast forwarding into tomorrow's forecast, that cold air is going to stay locked in place in part of the northern plains and the western Great Lakes. Minneapolis, your high for tomorrow, 16 is the expected high; St. Louis, 34; 39 in Boston; 78 in Miami; Salt Lake City with 43 and San Diego with 69.
Very quickly in terms of what you can expect in terms of the snowfall over the next 48 hours Erie, Pennsylvania, may see several feet of snow, certainly be advised. Cleveland, a light dusting. Buffalo, you get a break but in the Monday and Tuesday more snow on the way.
T.J., you're up to speed back to you.
HOLMES: Rene, appreciate you as always buddy. Thanks so much.
Well, helping your child do better in class; how can you do that? The founder of one of America's most successful high schools got some advice. He's going to join us live next right here in studio, Dr. Steve Perry. Stay with us.
(COMMERCIAL BREAK)
HOLMES: All right. Taking a look once again at what's happening in Washington, D.C.; live look here at the Senate floor. This is live. They are working on a Saturday taking up a couple measures. One has already failed.
Again, they're dealing with the Bush-era tax cuts. And the vote just took place. Dana, we saw the earlier vote that failed, having to do with whether or not they're going to extend the Bush-era tax cuts for people making less than $250,000. That failed, as expected. This go around, second vote.
First explain what this one was, and do we have an answer on whether or not this one failed?
BASH: We do have an answer. This vote, first of all, yes, it did fail. And this vote was to extend tax cuts for those making up to $1 million. This was something pushed by Senator Chuck Schumer of New York. The vote was 53-37, pretty close to the other one.
The point that Democrats were trying to make with this particular vote and forcing Republicans to take it, and most Republicans voted against this, was to be able to say afterwards, see that? Republicans just want to have tax cuts for millionaires. Because the reason Republicans voted against this, the reason why Republicans voted against the first vote is because they think that just extending only some of the tax cuts is the wrong way to go. Republicans believe extending all of the Bush-era tax cuts is critical, and they insist and they've been doing it all morning on the floor of the Senate. It is even more so -- more critical at a time of recession not to raise taxes.
So both of these Democratic measures this morning have failed, as expected; Democrats, though, have succeeded in their political goal, which is getting everybody on the record on this in the Senate.
And now, T.J., we do expect the negotiators to be able to move on, and from their perspective, rather quickly to try to figure out a compromise so that in 27 days, everybody in America does not see a tax increase -- T.J.
HOLMES: All right. Twenty-seven days and counting.
An extraordinary Saturday of politics, I guess you could say on Capitol Hill.
Dana, we appreciate you as always. Thanks so much.
Well, we have heard a lot of debate -- a lot of public debate -- about fixing America's schools. But for families across the nation, education is a pretty personal issue. Many parents get stressed out trying to help their children do better in the classroom.
Our Steve Perry, CNN education contributor and founder and principal of one of the nation's most successful high schools; he's been going across the country talking with parents and students. And the result is a special program that will air on CNN just a little later today. It's called "EDUCATION MAKEOVER". Here's a preview.
(BEGIN VIDEOTAPE)
VICTOR RACZKOWSKI, FATHER: The main help that we need is that homework and keeping our kids on track in school has become a source of a great deal of strife and disharmony.
JULIE RACZKOWSKI, MOTHER: Why wait till the children go to college? And we're paying $40,000 a year to have them not do homework and not follow through and potentially drop out of school?
STEVE PERRY, CNN EDUCATION CONTRIBUTOR: The Raczkowskis are not alone. There are millions of families struggling with many of these same issues.
There's a lot that we can learn about a child by the way they keep their room.
What happened, David, are you moving out?
DAVID RACZKOWSKI, SON: There was a tornado. PERRY: A tornado. I see we have some newspaper articles down here, looks like some notebooks and some "National Geographics". What is that, David?
D. RACZKOWSKI: This is a permission slip from a whitewater rafting trip a couple of days ago.
PERRY: A permission slip. Oh, good.
D. Raczkowski: And I needed this, but I forgot it.
PERRY: Sometimes when you start like this, things happen.
Now it's about 9:30. So bedtime?
J. RACZKOWSKI: Eva and Nathan will probably go off the computer probably I'd hustle them off around 10:00.
PERRY: But the kids are not staying in bed. They're getting up in the middle of the night for snacks.
J. RACZKOWSKI: You know, all that middle-school eating.
PERRY: Yes.
J. RACZKOWSKI: Crackers and all that stuff.
PERRY: So they go to bed around sometimes 1:00?
J. RACZKOWSKI: Yes.
PERRY: 2:00?
J. RACZKOWSKI: Yes.
(END VIDEOTAPE)
HOLMES: And Steve Perry joins me here live now. Always good to have you in studio. The great debate, right? Parents are wondering, what should I do? Schools are wondering what they should be doing. I guess where does it balance now? Where is the responsibility?
PERRY: Well, the responsibility, each person has a part and a role. I mean, each person plays a role. Parents have to play their role. The schools have to play their role. And what we're going to be talking about today in "EDUCATION MAKEOVER" is the role that the parents can play.
HOLMES: OK.
PERRY: There are some things that parents can do to help their children to be better prepared for school. They can do it essentially an educational audit. See what's going on in their home, what they can do to make the environment more conducive to learning.
What we talk about are very basic changes that a family can make in their home. So what they're going to walk away with is something that they can do after just a half hour of watching television today.
HOLMES: OK. And we're talking about, you said, an educational audit. It doesn't necessarily have to do with you sitting down and doing the homework kind of a thing. You're just making adjustments to the entire environment.
PERRY: Just the environment; something as simple as cleaning your room. Parents are always yelling at their kids to get their rooms cleaned. Well, there are reasons why. And we're going to talk about them this afternoon.
HOLMES: Where does that come into play? Is it a matter of discipline, teaching the child something like that?
PERRY: Something as simple as discipline or order. For instance, if you have stuff all over the floor as David did, he didn't know where his permission slip was. So something as simple as trying to find your homework. I have so many boys who come to school and the mother is at home, she's calling and saying I know he did his homework. He got an F. And he did his homework.
He probably did, it just got eaten in his book bag somewhere. Somewhere it exploded in there.
HOLMES: And another thing, some -- people often want to point to, well, he has a tough home life. The child might have a tough home life or single parent or poor neighborhood or whatever it may be. But this couple you talked to here, these are -- a couple of families even, you know, mom, dad, has a good job, nice house and all this, but still, they're not doing the right thing at home.
PERRY: Dr. Raczkowski and Mrs. Raczkowski are doing just fine. They have a very nice home and three beautiful children, two twins. And what we see is it doesn't matter how much money you make. In the end, we're all reduced to parents.
I'm a parent. And so I learned some things by working with them. I'm going to go home and see my son, Mason, play basketball.
HOLMES: All right. We're going let you go to the airport now. You're going to go to the airport right now. Again, Steve Perry, though, you can still catch the special today, twice it's going to air, 2:30 Eastern time, 4:30 Eastern time right here on CNN, "EDUCATION MAKEOVER" with our Steve Perry.
Good to see you as always, my man.
PERRY: My man.
HOLMES: Good to see you. Hope you catch that flight.
Well, coming up here, we are, of course, keeping an eye on what's happening on Capitol Hill. We've been showing you those live pictures. The Senate has been voting this morning on a couple things having to do with your money. In particular, the Bush-era tax cuts. We're expecting possibly to hear from a couple of the senators including maybe Senator Chuck Schumer, expecting possibly for him to step out. That's one we certainly want to hear from after one of his proposals was essentially -- failed today in this vote. We're standing by for news out of Capitol Hill today.
Twenty-five minutes past the hour. Stay with us.
(COMMERCIAL BREAK)
HOLMES: We're coming up on the bottom of the hour. And Senate Democrats are focusing on tax cuts today. Who should get them in the future? They held two votes, two procedural votes. These wrapped up just a short time ago. And Democrats failed to get the votes needed to extend Bush-era tax cuts for families making under $250,000 a year. They also failed to extend tax cuts to families making up to $1 million a year. That was another proposal that was floated by Chuck Schumer of New York.
Republicans have vowed to shoot down anything that doesn't include all American taxpayers. The Bush-era tax cuts are set to expire at the end of the year if movement is not made by Congress.
Much like the tax vote, Senate Democrats and Republicans are at odds on extending jobless benefits that are set to expire for millions of Americans. The latest unemployment figures now stand at 9.8 percent.
Josh Levs with a closer look at this for us. You there? There he is.
JOSH LEVS, CNN CORRESPONDENT: Here I am. You know, T.J., when you dig into these numbers, you find some really interesting nuggets in there that kind of show you a bigger picture in America.
Let's do this. Let's use the camera to zoom way in on the screen. First of all, we know the figures, 9.8 percent. If you're looking at raw numbers of Americans who are unemployed, you are looking at 15.1 million people.
Now, take a look at this. There's a group in this country that has unemployment half of that, and it's on this list. This is unemployment and education. Based on your education level, among people who have not graduated from high school, 15.2 percent unemployment; among high school graduates, 9.6 percent; some college, 8.3 percent; and here, among people who have graduated from college, who have a BA or a higher degree, 4.8 percent.
So that right there shows you what a lot of people are doing right now in this economy is going back to school. And when you look at that, it shows you that, indeed, it does pay.
Now, take a look here. There's one more thing I want to show you in this breakdown because it's about race in America, and when we look at unemployment, it's helpful to keep this in mind. Among blacks in America, unemployment is at 16 percent, in these latest numbers; here, Latinos are 13.2 percent; whites at 8.9 percent; and Asians at 7.6 percent. And this one, a sliding downward scale, is what we see all the time in these employment numbers.
Now, if you were looking for a job, even if you have a job right now but not totally happy with the one you have, you're probably going to want to check out this website right here, CNN.com/jobs. We have so many resources for you to find a job, to learn about the jobs that are out there, to discover some jobs that you might not know about.
And one of the things we have here is called this, the economy tracker, that actually gives you a map, and you can use this to find jobs in your industry. You can click on what your industry is. Let's say you want to work in financial activities, you click on the state, boom, it shows you what the jobs picture is like in each state for each sector. All very helpful, all there for you at CNN.com/jobs.
Hopefully that resource will help all of you find jobs that, you know, jobs that - that make you happy. And, T.J., as we get more and more news about the unemployment situation in America, we'll always update it for you, right here.
HOLMES: All right. We appreciate you, Josh.
And to piggyback off of what he was just telling you about, the situation, dire as it may be, Americans are finding work, and some economists say, believe it or not, things are slowly improving.
Mary Snow explains.
(BEGIN VIDEOTAPE)
MARY SNOW, CNN CORRESPONDENT (voice-over): With only 39,000 private sector jobs added last month, it's hard to find any silver lining in the November jobs report. But economist Lakshman Achuthan says most of the report is looking through a rearview mirror.
LAKSHMAN ACHUTHAN, ECONOMIC RESEARCH CYCLE INSTITUTE: The really important takeaway is that the recovery continues. There is no double dip. There is actually a revival, if you look at forward-looking indicators, a revival in growth.
So the slowdown that we've seen in the jobs market for the past half a year, it's drawing to a close. It's - it doesn't necessarily turn on a dime, but it is going to turn around the end of this year.
SNOW: So where are the jobs? Among the most promising industries, high tech, engineering, education, health care, business services, or non-financial services.
Rob Reeves, a recruiter in Sun Valley, Idaho in the tech sector and in green jobs such as wind and solar power, says he's been placing people in jobs in the last few months.
ROB REEVES, RED FISH TECH: The real upswing didn't come until summer for us, and that's when we saw a significant push where, you know, where we are today, and we're still seeing that. SNOW: And while construction and manufacturing continue to cut jobs, there are some workers in those fields who found work by switching to green jobs. Thirty-two- year-old Chris Dunbar spoke with us from Asheville, North Carolina with his boss at FLS Energy.
The company specializes in solar energy and plans to hire 30 workers next year. Chris lost his job in construction a year ago.
CHRIS DUNBAR, FLS ENERGY: You see the writing on the wall and you know that you have to change at least your - your mindset. Your skill set, you know, you can - you have to realize that those skills could be used for - for a lot of different things.
SNOW: And despite the high unemployment rate, Lakshman Achuthan says things will improve.
ACHUTHAN: I would absolutely advise people who are wondering about where - you know, should I try now to get a job? Right now is the time to go. Right now, the next month, two or three, you're going to get a lot more traction than you did in the past three months in terms of finding a job.
SNOW (on camera): That's the optimism, but even the economist you just heard from, Lakshman Achuthan, says we'll be very lucky if the unemployment rate goes below 9 percent next year, and many economists agree. The reason why is that 8 million jobs were lost during the recession, and only a little over a million so far have been recovered.
Mary Snow, CNN, New York.
(END VIDEOTAPE)
HOLMES: And we turn now back to the story we have been keeping a close eye on this morning, senators working today, taking two votes on those Bush-era tax cuts. Both of those votes failed.
The first was whether or not to extend the Bush-era tax cuts for people making less than $250,000. That vote failed. The second one was on a - a proposal by Chuck Schumer of New York who would extend the benefits - extend the tax cuts, I should say, for people making up to $1 million a year, then let taxes go up for people making over $1 million. It was called a millionaire's tax.
We got some reaction from Senator Schumer just a moment ago.
(BEGIN VIDEO CLIP)
SEN. CHARLES SCHUMER (D), NEW YORK: The party seems to feel that tax cuts for millionaires and billionaires is the most important thing this nation can do, and we are going to continue this fight until we achieve our goal. Permanent tax cuts for the middle class, but no tax cuts for the millionaires and the billionaires.
Again, we don't have anything against them. God bless them. They made a whole lot of money, and that's great. But they do not stimulate the economy. Only 30 cents on every dollar of the tax cut to the highest income people is spent.
(END VIDEO CLIP)
HOLMES: All right. So where do we go from here? Well, negotiations are still going on behind the scenes between Democrats, Republicans, White House as well, trying to hammer out a deal.
Again, if something is not done by this Congress, those tax cuts will expire at the end of this year and everyone will get a tax increase at the beginning of next year, and that's what most will agree nobody wants.
And we're also standing by to hear from the president this morning, the president now expected to speak maybe in the next half hour or so, going to address this new trade deal, an agreement reached with South Korea, a trade deal he was hoping to bring back with him after that 10-day trip to - to Asia that he took just a few weeks ago.
Well, the president now, according to the White House, has reached a deal with South - South Korea on a new trade deal that could mean tens of thousands of jobs, either created or supported here in the U.S., and also - to also could mean up to $11 billion in new exports for this country. So, an important trade deal the president expecting to talk about in the next 30 minutes or so. You will certainly see that live here when it happens.
Also, shivering through the winter in a cold house. Government heating aid running short. It's the only choice for a lot of Americans in these tough times.
We will have details on this coming your way in just a moment.
It's 36 minutes past the hour.
(COMMERCIAL BREAK)
HOLMES: Taking a look now at some of the stories making headlines.
Five U.S. military aircraft headed to Israel this weekend to help battle a raging fire. The fire was - killed - has killed 41 people, injured more than a dozen others around the city of Haifa. A team from the U.S. Forest Service is on its way to the region.
Police say it appears the fire started out of negligence. Two suspects are in custody now.
There's been another violent death at a picturesque Disney- developed community in Florida. Authorities say a resident who was involved in a standoff with a SWAT team fatally shot himself. The 52- year-old man was reportedly distraught after separating from his wife.
This comes just days the Disney town of Celebration recorded its first homicide. That was on Monday. A 58-year-old man was found dead in his home. Police don't have any suspects. And can you imagine getting a text message from none other than Charles Manson? A California lawmaker wants to crack down on cell phones in prisons after hearing that Charles Manson was found with a phone in his prison cell.
Officials say the convicted killer called or sent text messages to people in several states last year. They believe the phone was smuggled in. A California state senator plans to introduce a bill making it a crime for prisoners to have a cell phone or to smuggle one in.
Well, these are tough economic times, as we know, and a lot of Americans will need help with their heating bills this winter. In Marietta, Georgia, just outside of Atlanta here, hundreds of people lined up in the cold this week to get help from the government. But, this year, the funds are running low.
(BEGIN VIDEOTAPE)
ANNIE WILSON, HEATING AID APPLICANT: I broke my ankle, not working, and I'm on disability right now, so it is hard, you know? It's hard to make ends meet.
SHARIAN MOORE, HEATING AID APPLICANT: My gas is actually off, and we are trying to get the gas paid so that my kids can have some gas - heat for the wintertime.
UNIDENTIFIED MALE: When you got here today, what did you find out?
MOORE: The funds have been exhausted.
WILSON: I hope it's on (ph), but I'm - but I'm on the wait list. That's good.
SARITA JOHNSON, TALLATOONA COMMUNITY ACTION PARTNERSHIP: You know, it just breaks my heart to have to tell them that I can't help you at this time. We actually have received less than half of the funding that we received last year to assist people with their energy bills.
If people would come out and just - I encourage them to put their name on the waiting list because we're just hoping and praying that Congress will allocate more funding and will come down not to just our community action agency but to others, because we're all in the same situation.
KATHY VOLKER, DONOR: I saw the news report on television, people waiting starting midnight because they don't have any heat in their house, and I just felt moved to do something as a private citizen and just help out because I've been helped in the past.
I just started talking to a lady in line, and I'm going to pay her bill for the winter, her heating bill. She said - she was crying and said I was an angel - which isn't true at all. but I'm just happy to help. I have heat and everybody deserves to have a warm house.
(END VIDEOTAPE)
HOLMES: This December has been a cold one in the Deep South, lows dropping to the 20s in several places. Winter, however, officially still more than two weeks away.
Well, because of these tough economic times, something that a lot of people consider bad etiquette might be more and more popular this year. We're talking about the idea of re-gifting this holiday season.
We're actually going to talk - or have talked to an expert about how to do it right. That's coming up next. Stick around.
(COMMERCIAL BREAK)
HOLMES: All right. We are standing by for Fredericka Whitfield here in a couple minutes at the top of the hour. Also, the president expecting -
FREDRICKA WHITFIELD, CNN ANCHOR: Yes.
HOLMES: -- to come out here in just a bit to talk about the South Korea and U.S. trade deal that has apparently been reached, so we will have that live for you when it happens. I assume it will be you handing it off to that.
WHITFIELD: Just might happen. Top of the noon Eastern hour, he'll be talking from the Executive Office building.
HOLMES: And good morning.
WHITFIELD: Good morning to you. You had a good holiday?
HOLMES: Had a good holiday.
WHITFIELD: We still have more but, you know.
HOLMES: Yes. Had a good holiday. Had a good morning.
WHITFIELD: Good.
HOLMES: All is well (ph).
WHITFIELD: Excellent. Well, we've got a lot going on today. I'm going to try and talk fast because, you know, we have a lot going on.
HOLMES: Let's start with the legal guys.
WHITFIELD: Our legal guys, per usual, they'll will be with us.
Donald Trump, he says, you know what, it's an airport noise - noise in West Palm Beach is disrupting the pleasure of his members when they attend the Mar-a-Lago Resort that he's got there. He has sued - our legal guys will let you know whether that suit is going anywhere.
And then a fan of "The Biggest Loser," you know, that television show on NBC? Well, she is taking not just the show but a product that is often on the show, a salad dressing, the makers of the salad dressing to task saying it's not low fat, it's not low sodium. She went to the expense of getting some laboratory tests on that.
HOLMES: Really?
WHITFIELD: We'll let you know the outcome of that suit.
And then at 2:00 Eastern Time, have you done any of your holiday shopping?
HOLMES: I'm getting it all done next Tuesday. I have a date. I'm going to do it all in one day.
WHITFIELD: OK. Well, do you have any shopping that you need to do without leaving the home? You may need thing -
HOLMES: Yes, online, I'm doing a little stuff online.
WHITFIELD: OK. You need to save the date of December 17th.
HOLMES: Why is that?
WHITFIELD: The Dolans will be along to explain why. If you shop online, you might get a break.
HOLMES: What?
WHITFIELD: Big hint. OK, no shipping cost. That's a big day. So they got -
HOLMES: Just on that day?
WHITFIELD: Yes.
HOLMES: That's kind of late, though.
WHITFIELD: For everybody.
HOLMES: It makes you a little nervous if you have to wait too late. Is it going to get there?
WHITFIELD: It will always still get there. Yes.
HOLMES: Probably, yes. We're going with probably.
WHITFIELD: We'll go with probably. Somebody will probably still be happy.
HOLMES: OK.
WHITFIELD: They've got other great shopping tips. And then, can you imagine living for 30 days without any person- to-person contact? Only contacting people conversing via social networking? And, by the way, doing it from a storefront like that.
HOLMES: That's what people do for the most part anyway. People wouldn't pick up the phone and call each other anymore.
WHITFIELD: Imagine living in that space for 30 days, everyone's watching you, but you don't have any real direct contact with them. This young lady does it. She's going to join us and tell us how agonizing or how, I guess, relieving it just might have been.
And then "Face To Face", this time with Katherine Schwarzenegger. She's the daughter of Maria and Arnold Schwarzenegger. She's got a new book out, "Rock What You've Got."
It would be hard to believe that someone who grew up in that Shriver-Schwarzenegger Family would have any kind of issues with their image or their body image. Well, she talks about that in this book.
She explains how she learned how to rock it - rock what she's got - and she eliminated one thing. And here's a little explanation on that.
(BEGIN VIDEOTAPE)
WHITFIELD: What's your advice to young people, whether it's middle school, high school, or even in college, who are dealing with this whole new element of bullying, cyber bullying and they feel like they can't get away from it. Because as soon as they get to their dorm rooms or their rooms at home, they log on or they get a text message, it's there. It's follow them home.
KATHERINE SCHWARZENEGGER, AUTHOR, "ROCK WHAT YOU'VE GOT": Well, I know when I was in high school, it was kind of my first experience with Facebook. It's when it kind of came onto the scene. And I noticed when I was always on Facebook that I would always get in arguments with people. And if there was a picture posted where, you know, I had my arm around someone, another person would get mad.
So I got rid of Facebook when I was in high school and I realized, you know, it really wasn't worth all the fights I was getting into -
WHITFIELD: You just cut it off.
SCHWARZENEGGER: I cut it off entirely.
WHITFIELD: Even though everybody else around was on it.
SCHWARZENEGGER: Everyone had it and I was like some sort of a weird alien that I didn't have Facebook.
WHITFIELD: And that didn't make you -
SCHWARZENEGGER: No, because I realized - WHITFIELD: -- feel excluded.
SCHWARZENEGGER: No. Because I realized that I wasn't getting in as many fights and arguments with people as when I did - when I had Facebook.
(END VIDEOTAPE)
WHITFIELD: So "Face To Face" with Katherine Schwarzenegger. So, isn't that interesting? She eliminated that whole Facebook thing, because of that. You don't believe that.
HOLMES: No. I'm OK with that.
WHITFIELD: You can't live without it?
HOLMES: No.
WHITFIELD: Oh, OK.
HOLMES: No really. I'm saying. I will get on her campaign.
WHITFIELD: Yes. She said, you know, that has a - that has a, you know, she had to eliminate that in order to feel better about herself because she -
HOLMES: Why?
WHITFIELD: -- got tired of, you know, ridicule or criticism from people who were on social networking.
HOLMES: That is not a bad way to go.
WHITFIELD: Yes. I know.
HOLMES: All right.
WHITFIELD: I'm OK with that, too.
HOLMES: We will see you here in just a moment.
WHITFIELD: OK.
HOLMES: Well, stick around, though. Quick break. And we are going to tell you the ins and outs, the dos and don'ts and the tricks to re-gifting. Got you covered.
(COMMERCIAL BREAK)
HOLMES: It's time now for "CNN Equals Politics" update. We are keeping an eye on all the latest headlines at CNNPolitics.com at our desk there.
More than a month now after the election, Democrat Mark Dayton has been declared Minnesota's next governor. Recount results show defeating his Republican challenger by about 8,700 votes. Democratic Senator Robert Menendez of New Jersey, he's under some fire for comments about extending Bush-era tax cuts. He compared working with Republicans on the issue to negotiating with terrorists.
Also, Senator Lindsey Graham calling for permanent U.S. bases in Afghanistan. South Carolina Republican says a long-running military relationship would benefit both countries.
Well, have you ever had a debate? Is it just tacky or is it the highest form of recycling, Fredricka? We are talking about re- gifting, you know, unloading the present that you received last Christmas or your birthday. You dump it onto somebody else.
WHITFIELD: Oh, don't use the word "dump".
HOLMES: Well, you know -
WHITFIELD: Then it's less appealing.
HOLMES: Dumping is appropriate, clearly. But that's what we're talking about.
But earlier, I spoke with Peggy Post. She's the director of the Emily Post Institute on whether and when it's appropriate. Listen, closely, Fredricka.
WHITFIELD: OK. I'm listening.
(BEGIN VIDEOTAPE)
HOLMES: In some cases, is it OK or is it ever OK to re-gift?
PEGGY POST, AUTHOR, "EMILY POST'S ETIQUETTE": In some cases, very, very rarely OK, but we don't recommend that one does it.
HOLMES: OK.
POST: If you do want to re-gift, if you really have something that you want to re-gift, make sure that the recipient would really like it. That's the key thing. Select something you're sure that person would like. That, say, you have a new coffeemaker that someone gave you. You already have the same coffeemaker. Your sister would love that. That's OK.
Also, make sure it's in new condition. You take off any gift wrap and wrap it up and make sure that the people don't know each other.
HOLMES: OK.
POST: The gift giver who gave you the gift -
HOLMES: OK. That's a good point.
POST: -- and the recipient of your gift. Because the key thing about etiquette - HOLMES: That's a very good point.
POST: -- is not hurt feelings. It's a Seinfeld word, "re- gifting" started in the mid-'90s with the Seinfeld show, because it's just a mine field for problems and awkward situations.
HOLMES: OK. Tell me this. Do you find that people have a tough time, you know, just getting past the idea. You feel about bad doing it. You feel bad about throwing a gift out that somebody gave you. You feel bad about returning it or maybe you can't. Do people feel bad as well about the idea of re-gifting?
POST: They actually do. A lot of people report that they do. And the better way to re-gift is to give it to charity or give it honestly, say, to your sister. I just received another coffeemaker and I'd love for you to have it. Don't wrap it up. Or a book. Let's say you already have a book someone gave you. Give that to the person honestly. And that way you don't feel funny about it. You really want to remember it's the spirit of giving.
HOLMES: OK. Peggy, is it a bad idea to try to, you know, dress it up, maybe put a tag on it again to try to make it look new? Is that a bad idea?
POST: Well, if you're going to re-gift, that's the only way to do it. And that is to - if you're going to wrap it up and really - maybe you've told yourself this is exactly what the person would like and you're sure there wouldn't be hurt feelings.
So then, yes, that's when you wrap it up, put the tag on, and you - you give it as you would have given any other gift you've selected for the person.
HOLMES: Peggy, given the economic times right now, we know a lot of people are hurting. And more on a serious note here, can this actually be a good idea and a good option? And is it possible we could see more of this during tough times, because you don't have money to go out and buy a gift for everybody?
POST: And - and absolutely. Because of the recessionary times, because we're a nation of so much stuff, that's why re-gifting has been increasing. In fact, a recent survey done by consumer reports a year ago said 37 percent of Americans said they plan to re-gift. That was over 31 percent the previous year. So it has been increasing.
And the whole thing is if you're going to do it, we'd like to tell you how to do it. And that is to do it without hurting anyone's feelings.
HOLMES: All right. But still, what if you - what do you do if you do get caught?
POST: Fess up. Be honest and say, I thought you'd really like it. I have to say so-and-so gave this to me, but I thought you'd really like it. Fess up. Don't try to - don't create a spiral of lies - HOLMES: All right. And last -
POST: -- and (INAUDIBLE) humor.
HOLMES: Yes. And last thing here, what types of items might be ideal for re-gifting and what kind of things should you avoid trying to re-gift?
POST: Well, definitely do not re-gift one-of-a-kind items, something that someone made for you, something that's really unique.
Let's say great Aunt Sue made a nice warm scarf for you, you don't re-gift that. And I don't recommend, of course, re-gifting per se but if people say when they do re-gift, if they do, it's generally more generic types of gifts. Really a nice gourmet sealed box of chocolates, or candles, some candles, some hand lotions in a little set, sometimes picture frames, sometimes a brand new book.
Make sure that whatever it is is in brand-new condition and as I said in the beginning, something that the recipient you're sure would like.
(END VIDEOTAPE)
HOLMES: See, Fredricka, on second thought now, I don't have any shopping to do. I've got everything in the closet right now.
WHITFIELD: I don't know. She's made me rethink a couple of things. I haven't done a re-gifting yet. I'm not averse to it. I'm like, hey, if that's what you want to give, I'm okay with that.
HOLMES: She said people are like you, they feel bad about doing it.
WHITFIELD: I'm afraid it would be misunderstood if I re-gift. However, after listening to Miss Post now, now I'm thinking, if I do it, choose to do it, you have to let the person know. I'm giving you something I have. It's not like a gift, it's like a donation.
HOLMES: No, honesty doesn't work for me.
WHITFIELD: I'll remember that, T.J. Lessons learned on re- gifting. Up to you. Maybe you feel good about it, maybe you don't. Thanks, T.J. Thanks, Miss Post.
