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CNN Saturday Morning News
Nelson Mandela Hospitalized; The Politics of Gas Prices; Airline Miles and Income Taxes
Aired February 25, 2012 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DEBORAH FEYERICK, CNN ANCHOR: And from CNN Center, this is CNN SATURDAY MORNING. It's 7:00 in the East, 4:00 in the West.
Good morning, everyone. I'm Deborah Feyerick.
Here's what's happening now:
Former South African President Nelson Mandela is in the hospital. We are keeping a very close eye on the story. Mandela is 93 years old.
Also --
(VIDEO CLIP PLAYS)
FEYERICK: The fight for freedom in Syria. Dramatic video as the Free Syrian Army takes on government troops and tanks.
Also, if you open up a bank account and receive airline miles as a reward, you better tell the IRS. It is now taxable.
And we start with the developing story out of South Africa. Former President Nelson Mandela has been hospitalized as what officials are calling an abdominal complaint. The 93-year-old's health has declined in recent years. He's lived very quietly and made very few public a appearances.
Here is CNN's Nkepile Mabuse with the latest from Johannesburg.
(BEGIN VIDEOTAPE)
NKEPILE MABUSE, CNN CORRESPONDENT: As we're told by the presidency today, that Mr. Mandela was admitted into the hospital. All they are telling us is that it was because of a long standing abdominal complaint that the presidency says needs proper specialist medical attention. They're not releasing any more information about the hospitalization of Mr. Mandela. We don't even know which hospital he was taken to. He's normally taken to Mopa (ph) hospital just around the road here from the bureau here in Johannesburg.
But we are being told that he's taken to the place where the best medical doctors are available here in South Africa. So, we're still working on sources trying to get more information. I spoke to a family member who told me that he was --she was with Mr. Mandela on Wednesday and he was in good spirits. She feels that doctors may have just wanted to take a precautionary measure by taking Mr. Mandela into the hospital because, of course, he is 93 years old. And his health is frail, Deb.
(END VIDEOTAPE)
FEYERICK: Well, a spokesman for South African's government now telling CNN that there is no need to panic. This was not an emergency but it was, in fact, planned. There was no operation involved.
The spokesman says they're not disclosing the name of the hospital so that Mr. Mandela has the space and privacy to recuperate.
And to Syria now. The Red Cross is hoping to get back into Homs today. Homs has been the epicenter of the upswing in Syria. The Red Cross was able to get in there for the first time yesterday to get some of the wounded out. Still, there are a pair of wounded journalists while that was going on.
A group of diplomats dubbed the Friends of Syria met to discuss what to do about the dire situation. Here is Secretary of State Hillary Clinton.
(BEGIN VIDEO CLIP)
HILLARY CLINTON, SECRETARY OF STATE: We agreed on getting pressure on Assad, getting humanitarian aid in as quickly as possible and preparing for a democratic transition. That was my message and that was the message of the chairman's statement that reflected the consensus reached here.
We wanted political solution. We know that's what's best for the Syrian people, their future, the region and indeed for international peace and security. I don't think anyone wants to see a bloody protracted civil war.
(END VIDEO CLIP)
FEYERICK: The United States is promising $10 million in humanitarian aid. And Saudi Arabia is considering arming the activists.
Coming up in just a few minutes, we are going to bring you some amazing video, more of that amazing video from inside Syria shot by a French journalist who is side-by-side with an activist. And it's something you will only see right here on CNN.
Well, the youngest son of Robert F. Kennedy has been charged with harassment and endangering the welfare of his newborn. Douglas Kennedy allegedly tries to take his 2-day-old son out of the New York hospital despite a nurse's warnings. According to WNBC, nurses tried to stop Kennedy from taking the boy out of the maternity ward and out of the hospital. He allegedly kicked one of them and fell down himself with the newborn in his arms. Kennedy and his wife say they did nothing wrong.
And the Marine Corps has released the names of the men killed when two helicopters collided during a training mission. It happened along the Arizona-California border this week. The Marines were preparing to go to Afghanistan. The names of the dead are: Major Thomas Budrejko, Captain Michael Quin, Captain Benjamin Cerniglia, and Captain Nathan Anderson. And also, Sergeant Justin Everett, Lance Corporal Corey Little, and Nickoulas Elliott. The cause of the crash, that is still under investigation.
Well, remember the story earlier this month of the dozen teens in upstate New York who were suffering from unusual ticks? Well, their doctors say many of them are now feeling much better and that the ticks are starting to fade. It's unclear how many of the teens have actually improved. Doctors believe stress triggered these unusual body movements. Treatments range from psychotherapy to anti-depression drugs to antibiotics.
Gas prices have been a major part of the Republican presidential campaign this week. And candidates are using the soaring prices to hammer away at President Obama. But, they are also firing ammunition at one another.
Here is CNN's political editor Paul Steinhauser.
(BEGIN VIDEOTAPE)
PAUL STEINHAUSER, CNN POLITICAL EDITOR: Hey, good morning, Deb.
You know, with just three days to go until the crucial primaries in Michigan and Arizona, it's a busy day on the campaign trail.
Mitt Romney was in Michigan yesterday in fact, and he spoke in front of 1,200 people at Detroit Economic Club talked about his tax policy, his plans to boost the economy. Also, you know, in the fight of how important Michigan is to Mitt Romney, he touted his hometown credentials. Take a listen.
MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: I love this state. This feels good, being back in Michigan. You know, the trees are the height. The streets are just right.
I like the fact that most of the cars I see are Detroit-made automobiles. I drive a Mustang and Chevy pick-up truck. Ann drives a couple of Cadillacs actually.
STEINHAUSER: While Mitt Romney was talking inside. Outside, protesters from the United Auto Workers were out there doing just that, demonstrating against Romney because of his opposition to the 2008 and 2009 federal government bailouts of the auto industry.
Rick Santorum got to Michigan as well. And you know what? He has some tough fighting words against Mitt Romney. Santorum got beaten up a little bit I think, it's fair to say at our debate in Arizona on Wednesday night.
Take a listen to his new language attacking Romney.
RICK SANTORUM (R), PRESIDENTIAL CANDIDATE: I don't know what principles that you can say you're consistent when you say I'm going to bail out one group of folks and not bail out another industry. My feeling was -- you are either for them or you're against them. But don't you start picking winners and losers. And that's what Governor Romney and others in this campaign have done. I haven't.
You may not like my position, but I have been consistent and principles unlike other people in this race.
STEINHAUSER: Both Santorum and Romney crisscross Michigan today. And later in the day, Ron Paul heads to the state as well to campaign. The only candidate here today is Newt Gingrich. He's got events in California -- Deb.
(END VIDEOTAPE)
FEYERICK: All right. Paul Steinhauser, thanks.
Well, a desperate fight for freedom.
(VIDEO CLIP PLAYS)
FEYERICK: Coming up, incredible video from inside Syria showing you the lengths opposition is going to in their fight against the government.
(COMMERCIAL BREAK)
FEYERICK: Now for a rare glimpse inside Syria and the growing humanitarian crisis there. This was shot by a French journalist who, for a month, was dodging bullets alongside the freedom fighters, the anti-Assad fighters as they took on the Syrian military Homs, the epicenter of the uprising.
Take a look.
(BEGIN VIDEOTAPE)
(GUNFIRE)
UNIDENTIFIED REPORTER: Guerilla warfare like this is relentless and terrifying. The fighters appear fearless and taking crazy risks.
(GUNFIRE)
UNIDENTIFIED REPORTER: But they still find time to look out for Mani.
(GUNFIRE)
UNIDENTIFIED REPORTER: Back at Mukhabarat headquarters, the battle is raging. Free Syrian forces detonated a bomb below the rooftop position where government snipers are trapped.
(GUNFIRE)
UNIDENTIFIED REPORTER: After more than 12 hours, the snipers are still putting up a fight.
(GUNFIRE)
UNIDENTIFIED REPORTER: Casualties are mounting.
Three Syrian fighters have entered the government security building.
(GUNFIRE)
UNIDENTIFIED REPORTER: It's room-to-room fighting now, stairwell-to- stairwell.
(GUNFIRE)
UNIDENTIFIED REPORTER: It's a humiliation for President Assad.
With bullets still flying, fighters make off with much-needed ammo.
(CHANTING)
UNIDENTIFIED REPORTER: The morning after, the Mukhabarat secret police building has been gutted, as has the local post office. Down the street, a long cue for bread. With parts of the city besieged, you can no longer get to shops in neighboring districts.
UNIDENTIFIED MALE (through translator): The citizens are hungry for bread. This is the only bakery in the area, because the snipers are taking out more people than they need. This is why it's crowded.
UNIDENTIFIED REPORTER: A couple of blocks away, and you're in Sabil district, where many belong to p president's Alawite sect. They have not been attacked. Homs, now patchwork, dividing along sectarian lines.
This doorway is as far as Sunni Muslims can go. For them, one step into the street and they are in sniper alley.
(END VIDEOTAPE)
FEYERICK: And that was just part of the breathtaking piece shot by the French journalist Mani. You can see the entire report on CNN.com. Also, we'll take you live to the region next hour for the latest on the efforts there to stop the bloodshed.
Republican presidential hopeful, Mitt Romney, addresses a near empty stadium in Detroit. This video doesn't tell the whole story. We're going to explain that coming up next.
(COMMERCIAL BREAK)
FEYERICK: Well, let's get a check of our top stories.
Nelson Mandela is in a South African hospital this morning. In a statement, officials say the former South African president was admitted because of an abdominal complaint. A South African spokesperson says it was not an emergency admission but it was planned. The 93-year-old Mandela last appeared in public in 2010 during the closing ceremony of the World Cup. But it's probably not the kind of headline Mitt Romney wanted to make. The Republican presidential candidate outlining his plan to boost the U.S. economy in a major speech at Detroit's Ford Field to about 1,200 supporters. The problem: the stadium holds 65,000.
Romney's speech was moved to that venue after a smaller space filled to capacity. (INAUDIBLE) situation saying the campaign previously had a hard time finding a large enough place to meet.
Dutch airline KLM hopes to make your flight a little friendlier -- thanks to a program called Meet and Seat. And here's how it works. You upload information from your Facebook or LinkedIn account and the airline will then match you with people who have similar interest. You can pick your seat based on those matches. The program is currently available on flights between Amsterdam and New York, San Francisco and San Paolo.
"SANJAY GUPTA, M.D." is coming up in just a few minutes. Here's a preview of what's ahead -- Sanjay.
(BEGIN VIDEO CLIP)
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Deb, this morning, I want to be looking at the shortage of life-saving cancer medicines and how close we might be to a fix. Also, something we have been talking about all week, new treatments for addiction. What works, what doesn't, and how to get help for your loved ones before it's too late.
All that and much more coming up at the bottom of the hour -- Deb.
(END VIDEO CLIP)
FEYERICK: All right. See you in a few minutes.
And if you like racking up frequent flyer miles and -- who doesn't? You are not going to like this: paying the tax man. I'll explain.
Plus, give you a heads up on some little known items that could affect your rebate.
(COMMERCIAL BREAK)
FEYERICK: And you are now looking at a picture of downtown Atlanta. The sun is just coming up. We've got a little music there to help you sort of get the juices flowing as you stretch awake today.
So, well, listen, if you have opened up a bank account and received airline miles as a reward, you're going to have to tell the IRS. The agency recently announced that those miles could be considered income and therefore taxable.
Our financial analyst Clyde Anderson is here.
Clyde, what was the reasoning behind this? And we are just talking about like if you are opening up a bank account or getting a credit card. We are not talking about miles we already have, are we? CLYDE ANDERSON, FINANCIAL ANALYST: Not that you're already have, if you get rewarded. So, say for example, a case happened with Citibank where they rewarded customers for opening up an account with 25,000 miles. And when you give a reward like that, it's a gift. And, generally, anything over $600 that you receive as a gift or anything is taxable. So, it's income. And so, you have to report it. Usually, you get a 1099.
Now, it was a shock to most people when they received those 1099.
FEYERICK: Then, how is bank going to handle that, how are credit card companies going to handle that? Because, look, I got 25,000 miles just by getting a credit card, and, you know, my wheels started turning.
ANDERSON: Right.
FEYERICK: And I'm sort of planning my next trip.
But that's -- are they going to have to cut back on that?
ANDERSON: Well, what you have to do is disclose it, and what you have to do is make sure you are reading the small print. Make sure that you're asking a tax professional when you get these types of things because there are other things that can be, you know, it could be an iPad, it could be concert tickets, other things that may be taxable if they are giving it as an incentive. You didn't do anything besides opening up an account.
FEYERICK: Yes, but one might argue. One could play devil's advocate and say, look, I'm opening up the account, I'm giving the bank my business and this is just, you know, this is like high interest, for example.
ANDERSON: Yes. And you may look at it that way, but the IRS doesn't see it that way. And so, if you use your credit card, say, to earn points or do things or actually using the credit card with paying something, then you get some type of reward back. That's OK. That's not going to be taxable.
But when you're getting some sort of incentive to do something, to join, it's really an enticement that they're going to join. So, it's an income to the IRS.
FEYERICK: So, what new things are they looking to tax? Also, home improvement loans, life insurance --
ANDERSON: Well, home improvement loans, a lot of people -- sometimes you get grants from the state. And this can be taxable. And some people have done updates to their home to make them greener, and maybe utilities.
Utilities, generally, they don't make you pay the taxes. But generally, say, if you upgraded a heater system or hot water system, they don't really tax that. But they may tax the free money people get from the state to do upgrades on their home, and so, you really got to be careful and you got to make sure.
And also with life insurance, if you surrender a policy, that money is taxable. Some people just don't understand that.
FEYERICK: OK. So, how can we protect ourselves? Is it just a question I'm asking? Are they obligated to tell you, by the way, here's your gift?
ANDERSON: You got to ask, ask, ask. You got to make sure you're asking. Read the small print. And again, really just consult a tax professional if you are not sure or unsure. Anybody who wanted to give you that gift, you know, you're going to make sure before you receive.
FEYERICK: Right. The point being not all gifts are free.
ANDERSON: There you go.
FEYERICK: All right. Clyde Anderson, thank you so much.
ANDERSON: My pleasure.
FEYERICK: We appreciate those insights. At least my miles are safe, or temporarily anyway. Thanks, Clyde.
You can join us every Saturday at this time as our financial analyst Clyde Anderson gives us his latest money-saving tips.
Well, we asked and you answered. How old should a child be to get a cosmetic surgery and should cosmetic surgeons actually do procedures on their own family? We're going to air your comments coming up next.
(COMMERCIAL BREAK)
FEYERICK: We told you a story about a doctor who performed cosmetic surgery on his two, young adopted daughters. And so, we asked how old should a child be to get cosmetic surgery and should cosmetic surgeons do procedures on their family members?
Well, Jenna Jones, she tweeted "older for personal procedures. Family would be the best to do the work because they care the most about you. Support." I like that.
Delano writes, "I think it's ridiculous that a parent would allow their kid to get plastic surgery. What kind of message are they sending?"
Keep those comments coming. Tweet me at @DebFeyerickCNN.
And we'll have more top stories at the top of the hour when CNN SATURDAY MORNING continues.
First, paying for prevention. What happens when medicine pays for meditation classes for yoga?
"SANJAY GUPTA, M.D." begins right now.
