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Senate Republicans Filibuster Extended Tax Cuts To Americans Making $250,000 and Lower Only; A Majority Of Americans Support Democrats Tax Plan; Personal Finance Experts Give Advice For Holiday Shopping
Aired December 04, 2010 - 14:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Finding the best holiday bargains. It's not as obvious as you think. This hour we'll give you key tips to save your shopping dollars.
And he thought he might be unemployed for about six months. It turned into two years. We first met Calvin Rachford (ph) at a job fair in 2009. He's back to tell us how his job search has finally ended.
And then at 4:00, a chilling weekend at the movies with murder and mayhem threatening to scare you silly.
You're in the CNN NEWSROOM where the news unfolds live this Saturday, December 4th. I'm Fredericka Whitfield.
There was a political show on the floor of the Senate today, a working Saturday, as both parties squared off over tax cuts and more importantly, your financial future. Two Democratic amendments that would have extended some of those tax cuts failed in votes.
CNN Senior Congressional Correspondent Dana Bash has been watching this for us all morning long as it continues into the afternoon now on Capitol Hill. Dana, so did the Democrats really think that they would actually get these extensions passed in this so- called lame-duck session?
DANA BASH, CNN SENIOR CONGRESSIONAL CORRESPONDENT: Well, ultimately, they hope that they will. Today the answer was no, that they didn't. But I think what's important to note, Fredricka, as you know, is that we're talking about the fact that at the end of the year, if Congress doesn't act, every American will see a tax increase. But what happened today didn't get anybody any closer to resolving that.
What you saw, as you mentioned, two Democratic measures, what they were, to extend only the tax cuts for those making $250,000 or less. That failed. And a second failed which would have raised it to $1 million or less.
The Democrats, their argument is, look, we don't think that anybody who is wealthy who makes over $1 million should get a tax cut. They should actually get a tax increase. And Republicans say no. Everybody should continue with these tax cuts. Nobody should get an increase in their taxes, especially in this economy. Listen to some of the debate.
(BEGIN VIDEO CLIP)
SEN. RICHARD DURBIN, (D) ILLINOIS: To give a tax break to the wealthiest people in America at this moment in history is foolish and reckless. And yet that is the position of the Republican Party and a definition of their values.
SEN. CHUCK GRASSLEY, (R) IOWA: This debate is not about cutting taxes. This debate is whether or not we ought to increase taxes on anybody during a recession, and we feel you should not raise taxes on anybody during a recession.
(END VIDEO CLIP)
BASH: Now, Fredricka, Democrats did come in knowing that they didn't have the 60 votes need to break a filibuster in order for these to pass. So why did they do it? They fundamentally just wanted to get On the Record with their views on tax cuts and more importantly wanted to get Republicans On the Record so they could say what they've been saying, which is that Republicans are holding the middle class hostage to try to get tax cuts for the wealthy, Fredricka.
WHITFIELD: Meantime, we heard from the president earlier this morning, sometime after noontime, in fact. And he said that he'll continue to work throughout the weekend. He's expecting Congress to work throughout the week to try to keep taxes down for the middle class. So how hopeful is he compared to what folks on the hill say that they can or cannot do within the next few days?
BASH: Well, I think we actually have a sound bite from the president. Maybe we can play that and I can answer that on the other side of the sound bite. Let's listen.
(BEGIN VIDEO CLIP)
BARACK OBAMA, (D) PRESIDENT OF THE UNITED STATES OF AMERICA: We need to redouble our efforts to resolve this impasse in the next few days to give the American people the peace of mind that their taxes will not go up on January 1st. It will require some compromise. But I'm confident that we can get it done.
(END VIDEO CLIP)
BASH: So that's definitely more than a nudge from the president and kind of a wink and a nod to his own Democrats that there's going to have to be compromise now.
What is going on, Fredricka, what has been going on for more than a week is talks that I'm told by Democratic and Republican sources seem to be resolving around extending all Bush era tax cuts for all income levels temporarily, probably two years.
What is unresolved are Democrats going to get out of that. Democrats particularly at the White House have been pushing for some concessions for Republicans like an extension of unemployment insurance benefits, much of that has actually run out for people without jobs. They want to extend that for a pretty long period of time, maybe 13 months or so.
Also, extending some other tax credits like for college tuition. Things like that. Those are on the Democrats' wish list. Democrats and Republicans say that they hope to get those resolved, just as you heard from the president, sometime next week. We'll see.
WHITFIELD: We will see indeed. Thanks so much, Dana Bash there on Capitol Hill, appreciate that.
So during that debate today, we heard a lot of senators talking about what they think the American people want. So we wanted to find out the real story. Here's CNN deputy political director Paul Steinhauser.
PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Hey, Fred, a rare session today by senators in there to vote on those tax cut extensions. Remember, those tax cuts that were implemented during the Bush years, they expire at the end of the year unless Congress takes action.
So how do Americans feel about all this? Check out this poll from CBS that came out two days ago. Interesting numbers. Look at the top. Only 26 percent of the people in this poll say that those tax cuts should be extended for all Americans regardless of income. That number's a little lower than other recent polls.
Right there in the middle you can see a slight majority, 53 percent, say you know what? Extend them but only for families making a combined income of $250,000 a year. And at the bottom, 14 percent say let those tax cuts expire.
So do Democrats and Republicans agree on this issue? Well, they don't here in Washington and they don't, it seems, across the country. Look at the same poll from CBS. You can see 46 percent of Republicans say, you know what, let the tax cuts finance to continue for all Americans. That number goes down to 25 percent for independent voters, and only one in ten Democrats say let the -- extend the tax cuts for all Americans. So definitely a partisan divide here, Fred.
WHITFIELD: Thanks so much, Paul. Appreciate that.
Let's talk about some nasty weather, snowstorm is barreling through the Midwest right now causing a whole lot of headaches for travelers out there. There are backups and delays right now at Chicago's O'Hare international airport. One of the world's busiest. Live pictures right now from near the airport as well as from Michigan avenue. Several inches have fallen already across much of Chicago. And more is actually in the forecast. Some folks kind of like it there.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: You have to have great snow.
UNIDENTIFIED MALE: I'm very happy because I like snow. I love playing in the snow.
(END VIDEO CLIP)
WHITFIELD: OK, lots of folks like playing in the snow if only you don't have to try and get from point a to point b. Jacqui Jeras will be along, she's tracking the storm. And we'll try and update the situation on those snowstorms taking place.
All right, so perhaps you're planning some holiday shopping this weekend. Don't go until you hear what the Dolans have to say. We'll get advice on where to find those bargains from the first family of personal finances.
(COMMERCIAL BREAK)
WHITFIELD: It is the holiday season, the malls are full of shoppers. Retailers love that. But personal finance experts Ken and Daria Dolan are standing by with tips on how to get the most of your holiday shopping. Reporting for duty. Good to see you. Looking like sunshine in your beautiful radiant yellow. Good to see you both.
DARIA DOLAN, PERSONAL FINANCE EXPERT: Actually, I'm wearing yellow for caution.
WHITFIELD: Oh.
DARIA DOLAN: Don't go crazy, because 13.6 million Americans are still paying off credit card debt from last Christmas.
KEN DOLAN, PERSONAL FINANCE EXPERT: You're kidding. I didn't know that.
DARIA DOLAN: So if you're one of those 13.6 from me to you, darling, stop buying. No Christmas this year.
WHITFIELD: Really? Even with cash.
DARIA DOLAN: Homemade things. Please.
WHITFIELD: Please, forget it, OK.
KEN DOLAN: If you're going to shop, though --
WHITFIELD: For those who are going to shop, those who are not seeing the caution sign --
KEN DOLAN: And a lot of people are going to do it, Fred, but I'll tell you, one of the worst things that can happen, we've all been there, last-minute shopping. Start comparative, comparison shopping. One of the good sites, we have no tie to them, is savings.com. Do it now. You'll save big bucks. None of this, like, I've got two days to go. It doesn't matter how much it costs, because 13 million people, 13 million people are still paying from last year, what Daria just said.
DARIA DOLAN: Another way to help yourself out is if you go to a brick and mortar store or whether you use the internet, talk to that retailer about sending you e-mail alerts so that you know when they're having sales on specific items.
KEN DOLAN: It's going to be a lot of those this year. There's a lot of competition from folks who will be spending a lot of dough and there's a lot of competition. So get online and offline, bricks and mortar promotional alerts.
WHITFIELD: You already said it, try and avoid credit card use especially if you're already in debt. But say your credit's good. You're not in debt. Are you saying, period, do away with credit cards?
DARIA DOLAN: No, by all means, use your credit card particularly if you get points out of it or, you know, something else that might include a benefit.
KEN DOLAN: But be responsible.
WHITFIELD: Be responsible always.
So say, you know, you do have things, you've got to shop for, you don't want to go to the store. You can do it online. You say there's a day of this month that you really want to take advantage of it because the shipping is free.
DARIA DOLAN: My favorite day of the month, as long as the goods that you want to send to someone are in stock.
KEN DOLAN: In stock, yes.
DARIA DOLAN: That's the key point here. But December 17th, most of the retailers out there --
KEN DOLAN: Like 1,000.
DARIA DOLAN: Yes -- signed up for a free shipping day. So if you go and buy something to ship to somebody for the holidays on the 17th of December, in many, many cases, at least 1,000 different retailers will say, you know what? We'll pick up the charge.
KEN DOLAN: Freeshoppingday.com.
WHITFIELD: I mentioned that to T.J. earlier this morning. You were going to have to wonderful tip on December 17th, the free shipping. He said, wait a minute. I don't know. That's too close to Christmas. What about for all those folks? Is that a guarantee? Will they ship free and get it there in time for Christmas?
KEN DOLAN: They guarantee it by Christmas Eve if it's in stock. If you feel uncomfortable, Fred, then pay the shipping and ship on December 10th. All we're saying is, it seems to have worked, if you feel uncomfortable that it's late, pay the shipping and be done with it.
WHITFIELD: And say you hear about a big sale, you know, at your favorite store. You say shop the night before, meaning make the purchase or mark your item, hide it or something and then take advantage of the sale the next day?
DARIA DOLAN: No, but here's the thing, Fred. Say the sales don't sneak into your favorite department store.
KEN DOLAN: They don't?
DARIA DOLAN: -- in the dead of night to change the prices for the upcoming sale. The stores have to prepare for that. In many cases, about 6:00 p.m. the day before. So go after 6:00 p.m. --
KEN DOLAN: Check it out. Every store doesn't do it.
DARIA DOLAN: Exactly. Go after 6:0 p.m., and you've got at least a 50/50 chance that if you pick up something that you want to buy and they scan it, it will come in at the sales price. Also, Nordstrom's is particularly good with this, make friends with a particular person at a particular department if you do a lot of shopping there.
WHITFIELD: They give you secret tips.
DARIA DOLAN: Because many times they'll give you an alert that, hey, coming up tomorrow or next week, we're having a sale on such and such.
WHITFIELD: Oh, it's good to have friends. It's so good to have you all, too. You'll be coming back to answer a lot of questions --
KEN DOLAN: Yes, Fred. We're ready.
WHITFIELD: -- people have been sending us about holiday shopping and other personal finance issues as well. So if you have a question, you can still go to my Facebook page, Fredricka Whitfield, CNN.com. Josh Levs will be along, too. Ken and Daria Dolan, back after this.
(COMMERCIAL BREAK)
WHITFIELD: Still ahead, the Dolans answering your personal finance questions. But first a look at the top stories.
Senate Republicans blocked efforts today to extend Bush-era tax cuts to most Americans. The action is expected to clear the way for the White House and Republicans to extend the tax cuts to everyone, the very rich.
Spain airspace is back open after it was closed for hours after a strike by air traffic controllers. The walkout stranded thousands of travelers. The government ordered them to return or face prosecution.
And the U.S. is sending five military transport plans to Israel to help fight a massive wildfire there. The C-130s will leave this weekend from the air bases in the U.S. as well as in Germany. Some will be carrying fire retardant. The fire has already burned more than 10,000 acres across northern Israel and it has killed at least 41 people.
Now more about your money. As promised, the Dolans are back to answer your personal finance questions. Our Josh Levs is here as well, here to help pass along some of those questions.
So we've been talking about shopping and how people can save money. But overall, people still want to know how to get the biggest bang for their buck.
JOSH LEVS, CNN CORRESPONDENT: Yes. All I need to do is tweet the word "Dolans" and we get tons of questions.
KEN DOLAN: I love you. Hi, Josh.
DARIA DOLAN: We missed you.
(LAUGHTER)
KEN DOLAN: How dare you not be on when we're on? I took a whole day off. I took a whole day off. It's good to be back.
DARIA DOLAN: You're not allowed anymore.
KEN DOLAN: People yell at you.
LEVS: I know. I can't win. This first question from Rose, "How do I get my credit card company to reduce my rate?" Look at what she says. She says late payment in May of 2009 and still paying high because of it.
DARIA DOLAN: Well, if she has been absolutely faithful to have one little blip, and it could have been the fault of anything, not necessarily a chronic problem of hers, if she's been faithful and been on time or even early with her payments every time since then, we're talking well over a year now, I would call the 800 number. I would talk to the person at the other end.
KEN DOLAN: Absolutely.
DARIA DOLAN: If they say I can't do anything about it, ask for their supervisor, and plead your case. If there's a one-time happening, you should be able to at least get a decent discussion.
KEN DOLAN: Exactly. If you've had a good credit report, a good credit record since May, 2009, believe me, another credit card company would love to have you.
LEVS: A phone call.
KEN DOLAN: Get a competitive rate or so long.
LEVS: That advice helping a lot of people.
Let's get this next one from Forrest who wants to know about interest rates. He is asking "When are interested rates expected to rise again, and at what threshold is refinance a good decision?" KEN DOLAN: You do the interest rates, I'll do refinance. Does that work?
DARIA DOLAN: I was just going to say, refinance now.
KEN DOLAN: What do I know?
DARIA DOLAN: The rates are going up. They were 4.17 at their low a few weeks ago, and they're on their way to 4.5 percent now. So now is the time to do it.
KEN DOLAN: Quick Dolan formula, I can do it in a second. And that is simply this. There are a lot of factors including how many years you have left on the mortgage. But let me show you the math. How much is it going to cost to refinance? I don't know, $2,000. How much are you going to save? $200 by refinancing. Then you'd better be planning on staying in your house for at least ten months.
So if you're looking to sell your home in the near future, forget it. You're going to be in for a while. Do the math and do it now.
DARIA DOLAN: And real estate is not getting all that healthier, so you're probably going to be in there for a while. And trust me, with the Fed creating money out of thin air like this, we are going to have much higher interest rates.
KEN DOLAN: Don't get her started.
WHITFIELD: Can I interject with a question on that? Say you are going to stay in your home a while, you do want to take advantage of that 4.5 percent, but if the value of your home has dropped like seemingly everybody else's has, does that defeat your chances of actually getting a refinance?
KEN DOLAN: It get be tough, Fred, there's no -- Fred, you have to go through the process and talk to a bunch of lenders. You make the quintessential point. OK, Dolans. Sure, I'll do the math. All of a sudden when they're only going to lend me a percentage of my present value, it could be a problem.
DARIA DOLAN: It could be a very big problem because they are really low-balling a lot of these appraisals now. Something they should have done all along.
LEVS: It costs nothing to shop. Thank you, Dolans. I'm always taking questions for you guys. Let's show the screen, Facebook and twitter. Josh Levs, CNN. You can always send there any questions you've got for them. Guys, we'll hold on to the ones that come in now and bring them to you another weekend.
WHITFIELD: Perfect, Josh. There are ways in which to continue to find you two. Yes, we love it when you're here with us, too, but people still have lots of questions. So to get much more financial advice, you, too, can go to their website and get some real truth about some debt relief offers and how to avoid seven retirement planning mistakes. Just go to wwwdolans.com. They are always at the ready.
LEVS: The dynamic Dolan duo.
WHITFIELD: Yes, the dynamic Dolan duo always here to deliver. All right, thanks, everybody for your questions, appreciate that.
Emergency exit -- this next story is an example of just how tragedy can lead to innovation. The inspiration for this innovation is 9/11 and the tall buildings that trapped so many. Gary Tuchman has our "Edge of Discovery" report.
(BEGIN VIDEOTAPE)
GARY TUCHMAN, CNN CORRESPONDENT (voice-over): Since September 11th, 2001, Dr. Kevin Stone has been thinking about the rescue challenges of tall buildings.
DR. KEVIN STONE, DEVELOPED RESCUE REEL: Right now if you're in a disaster, a fire, an earthquake, your choices are to get down the stairwell or to try to get to the roof. Tall buildings often will get filled with people, And the stairwell has essentially become unusable.
TUCHMAN: Stone's solution is called the rescue reel. He says the small and portable system is intuitive and easy to use.
STONE: Hook it to something that wouldn't go out the window such as a door or desk or a hook. Get into a universal harness, clip it to the device, and lower themselves to the ground. A non-trained person will be able to safely get out of the building in under 10 to 15 seconds.
TUCHMAN: Designed for buildings under 100 stories, Stone thinks rescue reels could one day be as common as fire extinguishers and sprinkler systems.
STONE: As we build taller and taller buildings, the likelihood of rescue departments being able to get people out of tall buildings safely is going down rather than going up.
TUCHMAN: He says that the commercial version of the device should be available in time for the tenth anniversary of 9/11. Gary Tuchman, CNN.
(END VIDEOTAPE)
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