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American Morning
President Bush Now at Center of CIA Leak Case; Can Last Minute Wrangling Lead to Deal on Immigration Reform?
Aired April 07, 2006 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: Good morning.
I'm Miles O'Brien.
SOLEDAD O'BRIEN, CNN ANCHOR: And I'm Soledad O'Brien.
President Bush is now at the center of the CIA leak case thanks to the vice president's former top staffer. New information on this, this morning.
M. O'BRIEN: Borders still broken while the Senate squabbles. Can last minute wrangling lead to a deal on immigration reform? We're live on Capitol Hill with the latest.
S. O'BRIEN: Tornadoes and high winds sweep across the Midwest. They're now headed elsewhere. The forecast is ahead on where you should expect some severe weather warnings.
M. O'BRIEN: What to do with that refund, the vexing question of the day. We've got some important tips in today's edition of our "A.M. Tax Guide" on this AMERICAN MORNING.
S. O'BRIEN: Welcome back, everybody.
The White House could be in damage control mode today. President Bush has been named as the one who authorized the leaking of classified information. That came out of "Scooter" Libby's grand jury testimony.
Let's get right to Elaine Quijano.
She's live for us at the White House this morning -- Elaine, good morning.
What's the word from the White House?
ELAINE QUIJANO, CNN CORRESPONDENT: Good morning to you, Soledad.
Well, first of all, this obviously is a complex, confusing story. But the bottom line here, officials are not confirming or denying any of the testimony outlined in those new court papers filed by the special prosecutor, Patrick Fitzgerald.
It's important to note a couple of things right off the top here, Soledad. The bottom line is that these documents don't suggest in any way, shape or form that the president or the vice president actually broke the law or that the president authorized the disclosing of the secret identity of the CIA operative, Valeria Plame.
What this has done, though, and the reason this is creating such a buzz here in Washington is that this essentially has opened the door, if you will, for the president's critics, who say that this indicates the president was not practicing what he preached when it comes to leakers.
This is a president who has made it clear he does not like leakers, that, in fact, he thinks leaks can be harmful. But here in this testimony outlined in this document, in these papers that were filed, Vice President Cheney's former top aide, "Scooter" Libby, suggests that it was the president who did authorize the disclosure of some classified, previously classified Iraq intel.
So the legal ramifications, Soledad, not quite clear. But certainly the political ramifications coming to the fore. Democrats already saying look, this shows that there is some hypocrisy going on, that the president, who publicly was saying he didn't like leaks, in effect, was using that to rebut some of the charges made by Iraq critics back in 2003.
S. O'BRIEN: Well, the critics would also say it's not just the leakers. I mean it's about classifying documents -- declassifying documents for political gain, right? For revenge, essentially, Elaine. I mean that's got to have some political implications, right?
QUIJANO: Right.
Well, and what senior officials are saying here at the White House in response to that is they see a distinction, they see a difference. You know, for some, one person's leak is another person's sort of sharing of information. And they make the argument that when it comes to the leaks that weren't authorized, like the disclosure of the NSA surveillance program, the domestic surveillance program, they say that is what the president has been talking about all along, when he said he doesn't like leaks, that they can be harmful, because that refers to an ongoing operation.
What they say this kind of leak, if you will, involved is much different. And, in fact, they would take exception to that term leak, because it is perfectly within the president's legal authority to declassify information of this type. They say when it was done in this context -- they're not confirming any of this testimony, but this example cited in these documents, they say, is a much different situation.
But certainly critics disagree with that.
S. O'BRIEN: Well, it's going to be interesting to hear what the White House has to say specifically about this -- this issue, when asked, because, obviously, the fallout could be huge.
Elaine Quijano at the White House for us this morning.
Elaine, thanks. M. O'BRIEN: A rare early start for the Senate today. Spring break is looming. They're trying to hammer out a deal on immigration reform, but there may not be enough time.
CNN congressional correspondent Andrea Koppel on Capitol Hill -- Andrea, I guess there's no chance they're going to continue working into their vacation.
Is there any chance there'll be a breakthrough today?
ANDREA KOPPEL, CNN CORRESPONDENT: The chances are quite slim. It's not looking good right now. What a difference a day makes. This time yesterday, the mood was optimistic as a bipartisan group of senators prepared to announce what they described as a major breakthrough on what, until then, had been the main stumbling block in trying to get comprehensive immigration reform, and that was what to about what -- between 11 to 12 million illegal immigrants currently living in the United States.
Well, by day's end, that bipartisan spirit had soured over another comp -- potential stumbling block, this time over what Republicans say is the Democrats' refusal to allow them to offer up amendments to the Mel Martinez-Chuck Hagel compromise.
Now, Democrat leader Harry Reid is reluctant to those amendments because he's concerned that it's going to water down what's already a fragile compromise.
Republicans accuse Reid, in their words, of trying to filibuster by amendment and effectively kill the bill.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R), ARIZONA: I think we all know where we are and I think we all know the obstacles we face. But I think we also know that people of good will need to sit down together and implement the -- the bipartisan agreement that was made after a lot of labor and hard work.
(END VIDEO CLIP)
KOPPEL: Now, a key test vote on the Hagel-Martinez compromise is set for 9:30 this morning, about an hour after the Senate comes into session. And as is always the case, they're going to need at least 60 votes to try to make the vote go to the floor of the Senate for an up or down vote to cut off debate.
But, Miles, as you mentioned, they're supposed to be leaving at the end of today for that two week spring break and there is the very real possibility there won't be a vote today. Not only that, there is the real possibility there won't be immigration reform this year -- Miles.
M. O'BRIEN: Andrea Koppel.
After all of that, all those demonstrations and debate, amazing it would come to this.
Thank you very much.
Let's get some headlines now.
Carol Costello in the newsroom -- hello, Carol.
CAROL COSTELLO, CNN ANCHOR: Hello, Miles.
We begin with some new developments to tell you about out of Iraq this morning.
Some explosions have just been heard near a Shiite mosque in northern Baghdad. Apparently at least three monitors were fired by insurgents. So far, we're hearing no reports of casualties, but, of course, we're keeping an eye on this one.
Reliving 9/11 -- jurors in the Zacarias Moussaoui sentencing trial are hearing details of the terror attacks and their aftermath. Former New York City Mayor Rudy Giuliani among the first to testify. The jury also heard what impact the attacks had on four children who lost their parents. The trials have recessed today. Testimony starts up again on Monday.
The much anticipated testimony from Enron's former CEO did not happen. Jeffrey Skilling was expected to take the stand on Thursday in Houston, but he never made it. His testimony has been delayed because lawyers took longer with another witness. Skilling says it's been five years, he thinks he can wait another weekend. We'll look for his testimony on Monday.
Much ado about a hairdo to an apology. Congresswoman Cynthia McKinney saying she is sorry about an incident with a Capitol Hill police officer. Still, a grand jury is looking into whether there will be any charges leveled.
Severe weather across parts of the country today. Take a look at this twister in Kansas. It could have been really bad, but no serious injuries to report to you. Some homes were damaged, though.
And this dramatic rescue in Missouri after a man in his car was surrounded by rushing water. Major downpours caused this creek to swell. Crews came in and they were able, as you can see, to get him to high ground.
that's a look at the headlines this morning.
Back to you -- Soledad.
S. O'BRIEN: All right, thanks, Carol.
Let's get right to the weather.
Chad's got that at the CNN Center -- hey, Chad.
CHAD MYERS, CNN METEOROLOGIST: Hi, Soledad. (WEATHER REPORT)
S. O'BRIEN: Well, President Bush, as we've seen, really kind of got a dressing down on Thursday. It came from an audience member in a Q&A session. This morning -- there's the guy right there. We're going to meet him. We'll talk about what went behind -- or what was behind the question he asked the president and what kind of response he got from the president.
M. O'BRIEN: Also, those rape allegations against the Duke lacrosse team -- we will takes a closer look at why violence has become a huge problem among college athletes.
S. O'BRIEN: And in our "A.M. Tax Guide," we're going to have some tips on what you can do with your refund.
Should you put it in savings? Should you pay down debt? Should you buy another pair of black shoes? We'll take a look at that ahead.
M. O'BRIEN: I think we know what you want.
S. O'BRIEN: That's ahead on AMERICAN MORNING.
We're back in a moment.
(COMMERCIAL BREAK)
S. O'BRIEN: You could call it an exercise in free speech. President Bush took an unexpected verbal shot on Thursday during a Q&A session in Charlotte, North Carolina. An audience member calmly gave the president a piece of his mind.
Listen.
(BEGIN VIDEO CLIP)
HARRY TAYLOR, CRITICIZED PRESIDENT BUSH: I have never felt more ashamed of nor more frightened by my leadership in Washington, including the presidency, by the Senate and
(INTERRUPTION BY SOME AUDIENCE MEMBERS)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: No, let him say this. Let him speak.
TAYLOR: Yes. And I -- and I would hope -- I feel like despite your rhetoric, that compassion and common sense have been left far behind during your administration. And -- and I would hope, from time to time, that you have the humility and the grace to -- to be ashamed of yourself inside yourself.
(END VIDEO CLIP)
S. O'BRIEN: Harry Taylor was the guy who was criticizing the president.
He's in Charlotte this morning.
Nice to see you, Harry.
Thanks for talking with us.
TAYLOR: Thank you.
Good morning.
S. O'BRIEN: Take me back a little bit -- and good morning to you.
How did you get brought in to speak?
How did that work?
TAYLOR: I belong to an organization called the Charlotte World Affairs Council here in Charlotte. And they were one of the sponsors. And I had an e-mail on my computer Monday morning saying that there were tickets available and I think that's probably the first anybody knew that he was even coming was when the tickets were available...
S. O'BRIEN: So that's how you got to the speech.
But did the...
TAYLOR: Yes.
S. O'BRIEN: What did -- did it come down to someone picking you?
Did you have to be cleared or screened in the end...
TAYLOR: No, I didn't have to be cleared. I was just astonished and it was remarkable that I -- that I went and got a ticket and I have been an active -- not notoriously so, but been active. I wasn't sure whether they would let me in at any juncture, and they did. And then when I got in...
S. O'BRIEN: Had you spent a lot of time thinking about what you would say if you got the opportunity to take the mike?
TAYLOR: Yes, about six years worth.
S. O'BRIEN: Oh.
TAYLOR: So, yes, I had.
S. O'BRIEN: That's a lot of time.
TAYLOR: Yes.
S. O'BRIEN: So you finally get a chance to get at the podium. You were obviously in the balcony above and we heard a little bit of what you had to say.
I'm going to play a little bit more, as well. Listen.
(BEGIN VIDEO CLIP)
TAYLOR: You talk about freedom, I see you assert your right to -- to tap my telephone, to -- to arrest me and hold me without -- without charges, to...
BUSH: Yes?
TAYLOR: ... to try to preclude me from -- from breathing clean air and drinking clean water and eating safe food. If I were a woman, you'd like to restrict my opportunity to make a choice in...
BUSH: I'm not your favorite guy?
(END VIDEO CLIP)
S. O'BRIEN: He was trying to wrap it up in a nutshell for you.
What did you make of the president's response?
TAYLOR: I don't know that he really responded to what I asked him. But I was grateful and I am grateful for him for allowing me to finish. He didn't interrupt me. And you heard there were a lot of boos and -- but he let me finish what I was saying and...
S. O'BRIEN: And he shushed the booers.
TAYLOR: He did.
S. O'BRIEN: I mean, he said let him finish.
TAYLOR: He did. He was really gracious in that respect. And I -- but he never, I don't think he responded to what I was saying. He went on to more rhetoric about the wiretaps.
And I really didn't have a question. I just wanted to -- I wanted to make a comment that maybe would get through to him and make him understand that there's hundreds of millions of people out here that -- that don't particularly enjoy how he runs this country, our country.
S. O'BRIEN: Do you think, though, realistically, a guy standing in the balcony kind of getting an opportunity to speak his mind to the president is going to have any real impact?
TAYLOR: You never know that, Soledad. How do you know where those things come from? And probably not. But -- but you never know that that doesn't change something. Maybe he woke up at 3:00 this morning thinking yes, maybe that guy is right, maybe I should think about who I'm leading in this world and not ignore everybody but Karl Rove and Dick Cheney and Dick Rumsfeld.
S. O'BRIEN: That might be a pretty big maybe.
Let's talk about what the impact has been for you.
What was the response that you've personally gotten?
TAYLOR: It's overwhelming. A number of people came up to me afterward and I walked out of the auditorium and there was immediately five news reporters around me. I felt like I had just hit the home run to win the World Series.
And I went out on the street, an NPR reporter grabbed me. And then I got to my office and I had phone calls and e-mails. And it didn't stop until 11:00 or 12:00 last night. And I was in my office early this morning and already getting calls. Everything positive from people. So, the response is overwhelming. Not a single negative response from anybody. And I presume that'll be coming. But it's nice to know that there's a lot of people that support that effort and the opportunity that I got yesterday.
S. O'BRIEN: Harry Taylor speaks his mind to the president of the United States.
Thank you for talking with us.
We appreciate it.
TAYLOR: Thank you.
S. O'BRIEN: Miles.
M. O'BRIEN: So, are you expecting a big fat refund on your taxes this year?
Coming up, our "A.M. Tax Guide" continues -- tips on the best ways to use that refund and maybe how to avoid getting one, which is actually preferred, believe it or not.
And later, we'll tell you -- well, actually, we're going to take you for a wild ride on Disney's first big attraction unveiled in two- and-a-half years. It's the Expedition Everest Ride.
That's ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
M. O'BRIEN: Two thirds of us will be getting tax refunds this year. And a lot of experts will tell you that's too many people. The final part of our AMERICAN MORNING "Tax Guide," some tips for putting that money to good use.
Joining us is David Andelman.
He is the executive editor of Forbes.com.
David, good to have you with us.
DAVID ANDELMAN, FORBES.COM EXECUTIVE EDITOR: Thanks for having me. M. O'BRIEN: For a lot of folks, this is like an annual bonus. They sort of plan financially for their tax refund. But really you shouldn't do it because the federal government, Uncle Sam is hanging onto your money, not paying you interest.
ANDELMAN: Exactly. It's bad planning, basically. Yes. If you get a tax refund, you shouldn't be. It's too late now for last year, obviously, but it isn't too late for next year. What you should be doing, if you are getting the refund this year, if you've been getting a refund regularly every year, file a new W-4, raise the amount of -- lower the amount of deductions you get during the year and, you know, you'll get -- you won't get a refund next year, which is good.
M. O'BRIEN: The W-4 can be a little confusing, though, the way it is. It's kind of an arcane form. So you sort of have to walk, you know, I guess you sort of -- it's like trial and error. And nobody wants to owe money. I guess that's the concern, right?
ANDELMAN: Right. Exactly. Exactly.
You know, Uncle Sam doesn't pay interest, as you said.
M. O'BRIEN: All right, so $2,400 is the average, real time average. You say that'll go down as more filings come in because the later the filling, the less likely they want a refund.
ANDELMAN: Right. You should file early.
M. O'BRIEN: But, still, that's a big number.
ANDELMAN: Yes.
M. O'BRIEN: So you've got, roughly, we're talking about $2,500 to spend.
What is the first thing you should address?
ANDELMAN: The first thing you should address is all of your high -- high rate -- interest rate debt. For instance, your high rate credit card debts. You know, any loans that you have that are, you know, you're paying 18, 20 percent a year. That's -- those have to go. And that's the -- that's your first priority is to get rid of that debt and then you can start looking to other things to do.
M. O'BRIEN: It's always that first -- get rid of that credit card debt before you do anything.
ANDELMAN: Right.
M. O'BRIEN: So the next thing you would do is then start thinking about investing for your future, your retirement, right?
ANDELMAN: Right. Exactly. Make sure that you're taking the maximum amount that you possibly can for your 401K plan, for your IRA, whatever it is to plan for your retirement, and, also, eventually, for your children, as well. The 529 Plan for college, eventually. That is also another very good thing, a tax advantage savings plan.
M. O'BRIEN: And that's an important thing if you do increase your 401K contribution, you've got to remember, you might want to change your withholding because your tax bill is going to go down because you've deferred some income.
ANDELMAN: It is.
M. O'BRIEN: Let's talk about for your kids, then, because a lot of people with, you know, who are looking at -- thinking about kids in college and so forth. That's a big priority in their lives.
ANDELMAN: Yes, these 529 Savings Plans are very, very good for this sort of thing, especially if the children are younger and you really have a long way to go where you can really begin to border up savings. Tax Advantage Savings, again, that will help get them through the college years.
M. O'BRIEN: All right, so we've cleaned up the credit card debt. We've thought about our 401K. We've got the 529s.
What do we think about next?
ANDELMAN: Well, we can think about ourselves, for openers. We can have fun with some of this money. You know, go out and buy yourself that new pair of shoes you really want or have a facial, as one of my reporters suggested.
All of these are good things to do, but only after you've done things that really, you know, that really take care of your future and your children's future.
M. O'BRIEN: All right, before you go buy the shoes, should you -- should you think about, you know, fixing up that bathroom on your house or, you know, some -- some kind of thing that would help your lifestyle and yet also mean something for your equity in your home?
ANDELMAN: It could mean something for your equity in your home. Be careful about that, though, because a lot of the things that you do put into your house like that, like repairs like that, don't ultimately translate into really getting it back at the end and in spades. It'll be great for you and you'll enjoy it, certainly. There's no question about that.
But don't always count, especially in this real estate market, which is leveling off, don't always count on getting it back at the end.
M. O'BRIEN: And, finally, what about rainy day money?
How important is that?
I've heard some schools of thought where it's better to focus on keeping the credit card debt down and you could always get a cash advance if you have a true emergency.
What do you -- what's your theory on that?
ANDELMAN: Credit card debt absolutely has to go down. There is no question about that. But, also, having a little bit of mad money, rainy day money, anywhere from two to six months of your salary is probably a very good thing to have, as well, and that's certainly something that can be put -- if you have a substantial tax refund, that's something that that can go toward.
M. O'BRIEN: All right, have you filed your taxes?
ANDELMAN: I have, indeed.
M. O'BRIEN: All right.
Did you get a big refund?
ANDELMAN: No.
M. O'BRIEN: Good. You did it right.
ANDELMAN: There you go.
M. O'BRIEN: All right, David Andelman, who is with Forbes.com. He is the executive editor there.
Thanks for the good advice.
ANDELMAN: Thanks for having me.
M. O'BRIEN: All right.
And you'll find more tax tips for 2006 on our Web site at cnn.com/am -- Soledad.
S. O'BRIEN: Ahead this morning, the final chapter in "The Da Vinci Code" legal battle. A verdict is expected today. So who's going to come out the winner?
Plus, the Duke rape investigation. We're going to take a closer look this morning at why violence is becoming a huge problem with college athletes.
That's ahead.
Stay with us.
(COMMERCIAL BREAK)
S. O'BRIEN: So you like biking?
Well, what about a cross country bicycle trip?
One man is determined to complete the journey and now that he's retired he actually has time to do so in his Life After Work.
Here's CNN's Jennifer Westhoven. (BEGIN VIDEO TAPE)
GARY COUSE, RETIREE, BICYCLING CROSS-COUNTRY: I have my tent, my sleeping bag, a ground sheet and air mattress in here. I have my clothes over here.
JENNIFER WESTHOVEN, CNN CORRESPONDENT (voice-over): These small bags are all that Gary Couse is taking with him. Starting at the Pacific Ocean near San Diego, Gary and his fellow riders are headed cross country to Florida.
COUSE: We're going to St. Augustine, so it will be about two months to get there. We'll average about 60 miles a day. So it'll be six or eight hours a day.
WESTHOVEN: Gary started biking near his home in Georgia after he retired as an engineer. This is his second try riding across the USA.
COUSE: I went down a hill too fast and couldn't make a curve at the bottom of the hill and ran off the road and ended up breaking some bones in my face when I went off the bike. And that was the end of that trip. So I definitely decided I wanted to do it again.
WESTHOVEN: He uses special maps from the Adventure Cycling Association to plan each day's route, showing the sites and where to stop for the night.
COUSE: We have 10 to go.
You do see a lot that you normally wouldn't see when you are riding a bike because of the slower speed. Last year I saw an illegal sneaking across the road one day with a jug of water, and just different things like that that you wouldn't see otherwise in a car or in a plane.
During your working life, you really can't afford the time. And now that I'm retired, it's -- it's a great thing to be able to do it.
WESTHOVEN: Jennifer Westhoven, CNN.
(END VIDEOTAPE)
S. O'BRIEN: Still to come this morning, behind the making of a Disney attraction -- and it's a biggie. It's called Expedition Everest. We'll see the amazing detail that went into every aspect of producing this one of a kind thrill ride. We'll show you, up close, ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
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