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CNN Live Saturday

President Bush Vows Not to Raise Taxes

Aired January 05, 2002 - 20:37   ET

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

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL LIN, CNN ANCHOR: As for the struggling U.S. economy, President Bush vowed to stay the course. He chose a hand picked Republican audience in California and Oregon today to criticize democrats who don't like his tax-cut plan. Mr. Bush called them "tax raisers in disguise." More now from CNN White House correspondent Kelly Wallace.

(BEGIN VIDEOTAPE)

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT (voice-over): President Bush launches his economic offensive, holding a town hall meeting in this largely Hispanic community of Ontario, California and sending a blunt message to Democratic critics of last year's more than $1 trillion dollar tax cut.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: When they say a raise in taxes will help the country recover, not over my dead body will they raise your taxes.

WALLACE: But the Senate Democratic leader, Tom Daschle, says he's not backing tax hikes. In a statement Daschle said -- quote -- "no amount of hot rhetoric will get the economy back on track. Let me be clear, I propose short-term tax cuts to create jobs, not tax increases."

Friday, Daschle argued the tax cut probably made the recession worse. Saturday, Mr. Bush fired back.

BUSH: There are some in Washington saying that the tax cut caused the recession. I don't know what economic textbook they're reading.

WALLACE: Later in the day, a visit to Portland, Oregon, the state with the highest unemployment rate in the country. All part of the presidential PR campaign focusing on the economic slowdown. This, as Americans now select the economy over terrorism as the main problem effecting the country according to a recent poll, and as political analysts say the onus is on the wartime president enjoying a sky-high approval rating.

NORMAN ORNSTEIN, AMERICAN ENTERPRISE INSTITUTE: The public reaction is going to be if you can wipe out those terrorists, don't tell me you can't knock a few heads among those piss-ant members of the House and Senate down at the other side of Pennsylvania Avenue. WALLACE: But Democrats see an opening, taking on a popular president on domestic issues.

SEN. BYRON DORGAN (D), NORTH DAKOTA: All of us have said repeatedly he's done an outstanding job prosecuting this war against terrorism, but we also have some real serious problems here at home with our economy.

WALLACE: Aides say the president will continue traveling throughout the country, talking about the economy this month. His advisers are all too aware that Mr. Bush and his party have much to lose in this year's congressional election if things don't turn around.

Kelly Wallace, CNN, Portland, Oregon.

(END VIDEOTAPE)

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