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Government Avoids Shutdown; Protests Erupt Again In Egypt Against Ruling Military Regime; Britain Prepares For Upcoming Royal Wedding; Financial Expert Gives Advice

Aired April 09, 2011 - 14:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

DEBORAH FEYERICK, CNN ANCHOR: Spending the weekend working on your taxes? Well, we have four things you should know. That's coming up just ahead.

Then at 3:00 p.m. eastern, meet a Chicago mom who was so worried about teen violence, she started a community center right in her own living room.

And at 4:00 p.m. eastern, what you can do about your spring allergies.

You're in the CNN newsroom, where the news unfolds live here this Saturday, April 9th. I'm Deborah Feyerick in for Fredricka Whitfield.

Police are still on alert around the country, possibly due to a letter that a killer may have left behind.

(BEGIN VIDEO CLIP)

HENK VAN DER AA, REPORTER, ONE TODAY: It seems there has been a letter found in his apartment or in his car, but police do not want to confirm that piece of information. But it seems weird three hours after the shooting they have decided to block off and evacuate new centers, shopping centers in this town.

So I think that points in the direction of him leaving a note saying that he has also planted other bombing materials in different spots in this town. But that is a rumor or position. It's not a fact. I have not had that confirmed yet.

(END VIDEO CLIP)

FEYERICK: Egyptian demonstrators could hardly believe what was happening. Look for yourself there. See the military moving in? It seemed like the old days of the Mubarak regime. Egyptian soldiers and police used tear gas, guns, and clubs to break up a crowd of about 1,000 people in Cairo's Tahrir Square today. They came to protest against the ruling military council which they say has become secretive and abusive.

Two huge pumps are headed to Japan to help engineers at the crippled Fukushima nuclear power plant. A Russian cargo plane is flying them there. The pumps can channel massive amounts of water into the reactors to help keep them from overheating. Each pump is fully assembled, ready to start working. By the way, the new death toll in Japan is nearing 13,000 people.

In Santa Monica, California, a synagogue appears to have been targeted by a bomber. The explosion happened outside the synagogue Thursday and also sent a large pipe through the roof of a house next door.

(BEGIN VIDEO CLIP)

SGT. JAY TRISLER, SANTA MONICA POLICE: All the information I have is that something caused that explosion and we believe that it was an intentional act.

RABBI ELI LEVITANSKY, CHABAD HOUSE SYNAGOGUE: We've heard that now the police are looking for some type of suspect, that they believe now it was deliberately set off. And as a result it's made us all a little more nervous.

(END VIDEO CLIP)

FEYERICK: Police say they're now searching for a homeless man. They describe the 60-year-old man as extremely dangerous. No one was hurt in the blast.

Well, movie director Sydney Lumet is dead of lymphoma at the age of 86. He directed classics as "12 Angry Men" "Serpico," "Dog Day Afternoon," "The Verdict," "Network." His most recent film was "Before the Devil Knows your Dead" in 2007. He died this morning in his home in Manhattan.

In Hawaii a bomb disposal company lost five workers in an explosion. The workers were trying to describe fireworks that had been confiscated and were being stored in an underground bunker. Four people died at the scene. The fifth was rushed to a burn unit where he died hours after the blast.

It's being called the biggest fire to hit Texas this year, an aggressive wildfire that's consumed more than 70,000 acres, covering three counties. It's still on the move. The fire east of Lubbock has already burned several homes.

And a black bear caused quite a stir in Virginia Beach. It was spotted, there you see it, in an oceanfront tree yesterday. Wildlife officials, police and firefighters spent several hours trying to get the curious little bear out of the tree unharmed. They finally shot it with a tranquillizer dart. After looping a harness around it, they lowered it to the ground.

Florida police are looking for thieves who allegedly stole their own poodle, that's right, they stole their dog. The incident was caught on camera. The suspects used a crowbar to break into a cage at the animal shelter. They may have been trying to avoid paying a $43 lost dog fee.

(BEGIN VIDEO CLIP)

DAVID FOX, DIR., NEW SMYRNA BEACH HUMANE SOCIETY: If he had come to us normal business hours and say I can't afford the money, is there anything I can do, make a small donation, make a $10 donation, then we would waive the fee.

(END VIDEO CLIP)

FEYERICK: The Humane Society says it will drop the charges if the suspects come forward.

And a last-minute deal on a likely budget keeps the government running through Friday. The president signed it just moments ago. It also calls for more than $38 billion in cuts in the 2011 budget, that's this year's budget. Let's bring in our congressional correspondent Brianna Keilar. Why did this wrangling take so long?

BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: You know, Deb, Congress has a habit of not getting something done unless it is under the threat of a deadline. That's always the case. So I think for those of us who cover Congress we weren't really surprised this went up until the last minute.

And when you talk with Democrats and Republicans, both sides just really felt that if they went, I think, until the last minute, they were really working to get everything they could. You heard house speaker John Boehner say we're working to get as many cuts as we possibly can, and Democrats on the flipside were working their angles as well, trying for some of the policy provisions to make sure that those weren't in there, and I think that they were both really just going to the end to try to make sure they got as much as they wanted, Deb. It's not a pretty process for sure, right?

FEYERICK: It's definitely not a pretty process. It caused a lot of anxiety for families worried their checks weren't going to be in the nail. What's interesting is that under this deal they really took the funding for Planned Parenthood and the president's health care overhaul law and they took that off the table in order to make these budget cuts. Are these budget cuts nothing more than a trim to the overall budget or are they going to have some measurable impact on the agencies that are supposed to cut back and the programs?

KEILAR: We're still waiting to see exactly what all of these specific cuts. We have a general idea what initially was proposed. Republicans proposed $61 billion in cuts initially. It's down to $38.5 billion.

I think that certainly some programs will be cut. I happened to run into Senator Sherrod Brown, a Democrat of Ohio. I asked him what he thought about it, discussed what would happen if there was a shutdown and the people who would have lost out there, he said yes, but he feels there are a lot of people losing because of the cuts.

Of course Republicans are saying it's a time to tighten our belts. We need to make these cuts. But really in the scheme of things, Deb, you're right, this is a tiny fraction of the amount of spending that the government does, but still, Republicans will say this is about getting serious and this is a start and this is just one of the things that we're going to be doing. FEYERICK: Right, and really one could say that the three parties, if you think the Democrats, the conservative Republicans and tea parties all declared themselves going into the next election, so Brianna Keilar, thank you for shedding some light on this very confusing budget debate.

KEILAR: Indeed.

FEYERICK: We'll check in with you later on. Thanks a million.

The same people-powered movement that pushed Egypt's president from power is now taking aim at the military officers who replaced him. Protesters are again packing central Cairo and clashing with riot police. They're angry and have demands.

Straight to Cairo now. CNN's Ivan Watson is there.

(BEGIN VIDEOTAPE)

IVAN WATSON, CNN INTERNATIONAL CORRESPONDENT: Egyptians woke up today to once again barricades were erected around Tahrir Square after clashes erupted overnight under cover of darkness. What appeared to take place, demonstrators were trying to do a sit-in here in the central round-about, included among the demonstrators were about 15 uniformed army officers and soldiers who defied a ban by their generals and joined protests here that took place on Friday.

Around 3:00 in the morning, eyewitnesses tell us that the military tried to come in to force the demonstrators out of this area. It was after curfew. There were long rounds of gunfire, vehicles torched, and the people here coming out here very angry and confused over just what took place here.

UNIDENTIFIED MALE: You think the people did this? No, the military. They burned this. They're going to make us look like this. They have tortured a lot of us and beaten a lot of us, and it was for three hours, from about 3:00 to 6:00.

WATSON: A spokesman for the ruling military council is blaming what happened here, the tear gas, the bullets, the burned vehicles on remnants of the former regime of Hosni Mubarak. But in the eyes of some of the people we've spoken to, this may have struck a crippling blow to the credibility of the ruling military council, which took over executive and legislative powers in Egypt after Hosni Mubarak stepped down on February 11th.

And now we're seeing signs, the demonstrators are going to continue their sit-in here in Tahrir Square. Instead of facing off against former president Hosni Mubarak they are now appearing to head towards a conflict, a standoff with the ruling military.

Ivan Watson, CNN, Cairo.

(END VIDEOTAPE)

FEYERICK: Ivan, we'll check in with you later on. Now, their every movement is under the scrutiny of the paparazzi. If you're a young royal about to get married, how do you get away from the spotlight? A look at prince William and Kate Middleton's favorite hangouts.

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FEYERICK: Well, it's a tense Election Day, election week, actually Nigeria, people have been hurt and reportedly killed. Voters are voting for senators beginning today. They'll vote for president next weekend. Two bombs went off in election sites, one yesterday and one today. Observers called it the worst election in the world ever, with massive vote rigging, corruption, and violence.

Elsewhere, overseas today people in Rio de Janeiro are still trying to figure out what motivated a man to go into his former school Thursday and start shooting. The man killed at least 11 children then he killed himself.

And in Baghdad today thousands of people marched and chanted to mark eight years since Saddam Hussein fell from power. Most of the protesters are followers of Shiite cleric Muqtada al-Sadr. They shouted anti-American slogans and demanded all U.S. troops leave Iraq. All American forces are scheduled to be out of Iraq by the end of this year.

Well, to England now, where being in line for the throne certainly has its benefits. But if you're a young royal trying to get out of the castle just to relax, it takes a bit of planning. Where do Prince William and Kate Middleton go to have a good time with friends? CNN's Max Foster reports.

(BEGIN VIDEOTAPE)

MAX FOSTER, CNN CORRESPONDENT: When Kate and William were students, their social life revolved around pubs.

JAMIE ANDERSON, BAR MANAGER, MA BELLS: You saw the affection there. I saw them as a loving couple and you could tell they were happy together.

FOSTER: They still like pubs. This one is near Kate's country home and the landlord's even been invited to the wedding. When they're out on the town, though, in London, it's all about discretion. Kate and William restrict themselves to small select members-only bars, like this one in Chelsea.

RICHARD DENNEN, EDITOR-AT-LARGE, "TATLER": I think they're extremely careful about the people they hang out with. They really trust their friends. I would say they don't actually have that many friends, understandably. You know, they've got --

FOSTER: A close group they're comfortable with?

DENNEN: Definitely, yes. FOSTER: Of all their hangouts this is probably the longstanding favorite. It is Bougie. This is the corner they'll be sitting in, privacy from the rest of the club. This is the signature drink, a vodka base with passion fruit and raspberry flavors topped off with champagne and one of the couple's favorite.

William and Kate never announce themselves before they come, but when they do arrive they're whisked in as honorary members, i.e., they don't pay. No cameras allowed, which is why we could only film when it's empty. There's no protection once they leave, fair game for the paparazzi.

DENNEN: She was famous for always nipping into the bar and checking her hair and makeup before she left because she knew there were photographers waiting outside.

FOSTER: Kate and William understand all too well how much interest there is in them, but they're essentially private people. It won't come naturally for them to be at the center of potentially the biggest major event in history, their wedding.

Max Foster, CNN, London.

(END VIDEOTAPE)

FEYERICK: We're less than three weeks away from the young couple's royal wedding. And coming up at the half hour, CNN's Richard Quest has a very special program that takes you behind the scenes of the very big event.

Patrick Dempsey plays a doctor on TV but in real life he understands the challenges associated with cancer. In this week's "Impact your World" the actor is giving back by opening the Patrick Dempsey Center for Cancer, Hope, and Healing in Lewiston, Maine.

(BEGIN VIDEO CLIP)

PATRICK DEMPSEY, ACTOR: Hi, I'm Patrick Dempsey and you can make an impact on cancer. Cancer awareness started with my mother's diagnosis of ovarian cancer. She survived and I decided to open up the Patrick Dempsey Center for Hope and Healing in Lewiston, Maine. We've come a long way, we treat the whole person psychologically, physically and spiritually. Impacting your own world is looking outside your own door. For me it was cancer. Join the movement, impact your world at CNN.com/impact.

(END VIDEO CLIP)

FEYERICK: For more ways to help CNN is launching a new high-tech way to take immediate action. Scan this image with your smartphone to load our "Impact your World" website.

It seems more people are choosing to cheat on their taxes. When it comes to age, 55 percent of cheaters are under the age of 45. But who cheats more, men or women? The answer is coming up.

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FEYERICK: Before the break we asked who cheats more on their taxes, men or women? According to CNNmoney.com, men, that's right, you win. The breakdown 64 percent of men cheat compared to 36 percent of women.

And with changes to health care and new regulations by the Department of Labor, there are four things all Americans should know as they file taxes this year. Marcia Wagner, government adviser, is here with today's "Financial Fix."

Let's start with retirement accounts. Your first tip is to remember to make contributions to IRAs and SEPs, which stands for simplified employee pension plans before you file. Why is it important to do it beforehand?

MARCIA WAGNER, EMPLOYEE BENEFITS LAWYER: Well, with respect to IRAs, the hard deadline to make contributions is in fact April 18th of this year, not the 15th and that cannot be extended at all. People will have to determine if they're going to make the full $5,000 contribution if they're under 50 or $6,000 if they're over 50. And they also have to determine if they're going to do so on a pre or post-tax bases.

With respect to SECs there is an extension. Employers can adopt SEP plans up to the time of the filing of their tax return for the business, which could be until September of 2011, depending on the particular facts of the situation.

FEYERICK: OK, so Marcia, you also say IRAs, when do you convert them to Roth accounts? How do you make that determination and is there a deadline on this? Why is it important?

WAGNER: Well, the deadline for conversion for 2010 has in fact passed, but you can convert at any time in order to have the amounts treated as post-tax. That means that the full amount in the IRA would be taxable in the year of conversion, but when the money would come out, the increment they're on, the interest would be fully tax free.

FEYERICK: OK.

WAGNER: That's why people make the conversion.

FEYERICK: OK, all right, and listen, tax free is always a good thing. For people age 70 and up it is important to take the required minimum distributions from your tax qualified plans. If this doesn't happen there could be penalties. Describe that.

WAGNER: Absolutely. This is a trap for the unwary. For those individuals that have turned 70 and a half in 2010 or older than that they must commence to receive minimum required distributions from both their tax qualified plans, though there are some exceptions, and definitely from their IRAs. And if they don't do so, the amount that should have been distributed it will be subject to a 50 percent excise tax. So it's very important that people not miss this, that they're not caught unaware. FEYERICK: OK, and then finally, you say that it's really important to determine how your health care elections might be changed, especially in light of health care reform obviously with the latest budget that could be totally different right now. Do you want to enroll your adult children?

WAGNER: There are so many issues people now have to deal with. Yes, you can enroll your it all the children up to the age of 26, whether they're dependent on you or not, regardless as to where they live. The real question is what increment and cost will there be if you do so.

Another issue on health care reform that also caught people by surprise is that effective as of 1/1 of this year, over-the-counter medication cannot be purchased with pre-tax dollars. So people will have to determine in general how they're going to finance those types of expenditures.

FEYERICK: All right, so certainly lots to think of as all of this gets going and clearly everybody's focused on filing their taxes right now, very helpful information. Marcia Wagner, thank you so much. We appreciate your joining us as always with such great information. Thanks so much.

WAGNER: Thank you.

Well, with just 20 days to Britain's big royal wedding, here is a question. Will Prince William and Kate Middleton's wedding break any records? We wondered. We went looking for what kind of records there are to break.

Here's an interesting one. It's for the most crystals on a wedding dress -- 43,008 crystals. It was set by a Romanian designer and presented at an event last year. It's a good bet Kate Middleton will go for something, well, something a little simpler with a little less obvious bling.

So get ready to set your DVR. The countdown to the most anticipated wedding in decades has begun. CNN is going to be covering it like no one else. Watch CNN's "Royal Wedding Countdown" to the big day every Saturday night at 10:30 p.m. eastern leading up to the anticipated nuptials. Then on Saturday, April 24th 10:00 p.m. eastern, "CNN Presents -- The Women who would be Queen."

And as Prince William and Kate Middleton exchange their vows, live coverage on CNN, CNN.com and CNN mobile at 4:30 eastern, Friday morning, April 29th. Plus check in on anything to do with the royal wedding going to CNN.com/RoyalWedding.

I will be back at the top of the hour. Stay tuned right now for the royal wedding special with Richard Quest.

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