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American Morning

President Bush to Unveil Economic Plan to Spark Economy

Aired January 07, 2003 - 07:03   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.


PAULA ZAHN, CNN ANCHOR: In a couple of hours, President Bush will unveil his economic program to spark the economy. It's a sweeping plan with an estimated price tag of $600 billion over 10 years.
John King is standing by at the White House with details of the economic stimulus plan.

Good morning -- John.

JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT: Good morning to you, Paula.

This is a major policy and political initiative from the president. There are many questions; there are many critics. One thing not being said this morning is that Mr. Bush is being timid.

As you mentioned, the plan the president will unveil in Chicago today, the price tag runs more than $600 billion over 10 years. It is based on accelerating tax cuts already passed by the Congress.

The centerpiece is eliminating the taxation, the income tax on dividends you get if you have a 401(k) or if you own stocks. There's also speeding up the elimination of the so-called marriage penalty on two-earner couples, new child care credits, new help for unemployed Americans to help them find jobs.

The president's critics out in numbers even before the president unveils his plan, saying the Bush approach favors the rich and will explode the federal deficit. Mr. Bush says those critics are wrong.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The critics haven't seen the plan. This is a plan that provides tax relief to the working citizens. It's a plan that is a very fair plan. It's a plan that recognizes when somebody has more of their own money, they're likely to spend it, which creates more jobs.

(END VIDEO CLIP)

KING: Democrats say they have a much more modest stimulus plan. It focuses on about $136 billion, much of that in tax relief to low and moderate-income Americans. The Democrats saying they have the right approach. Again, they say Mr. Bush wants to explode the federal budget deficit.

Democrats say they've looked long and hard at the economy. They think a much smaller stimulus package is the right answer.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The Democratic plan stimulates; the president's plan procrastinates. The president's plan is too little, too late and much too irresponsible. The Democratic plan is significant, fast-acting and is fiscally responsible. We stimulate the job market. The president's plan stimulates the stock market.

(END VIDEO CLIP)

KING: Mr. Bush wants action from the Congress as soon as possible. That's one reason he is unveiling the details today, not holding them three weeks until the State of the Union address.

This initiative sets up a major test. Remember, after the midterm elections, everyone saying President Bush has more clout with the Republican Congress, but after those elections, the Democrats also saying they would be much more aggressive in challenging this White House's domestic priorities. The economy will be the biggest battle of the new Congress in the New Year, at least for the next several weeks -- Paula.

ZAHN: John, I'd like to talk jobs for a moment, because the Democrats say under their plan, they believe that about a million new jobs would be created. What are the Republicans saying about the president's plan?

KING: Mr. Bush says a million or more. Remember, the big defining line in this debate will be that more than one-and-a-half million jobs have been lost in the U.S. economy since George W. Bush became president of the United States. The president, of course, argues that recession began during the Clinton administration and just got worse after he took office, then exacerbated by the September 11 attacks. But that will be the defining debate.

But the bottom line here at the White House, they know the deficit will go up, but if you look at this proposal on dividends, to ease the taxation, eliminate the taxation on dividends, the defining moment for the White House here is they believe Americans are much more focused on their 401(k) statements than they are on the unemployment report every month. That will be a defining part of the politics of this debate that, again, will dominate the next several weeks as Congress comes back to work.

ZAHN: John King, thanks for the update -- appreciate it.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.






Aired January 7, 2003 - 07:03   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
PAULA ZAHN, CNN ANCHOR: In a couple of hours, President Bush will unveil his economic program to spark the economy. It's a sweeping plan with an estimated price tag of $600 billion over 10 years.
John King is standing by at the White House with details of the economic stimulus plan.

Good morning -- John.

JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT: Good morning to you, Paula.

This is a major policy and political initiative from the president. There are many questions; there are many critics. One thing not being said this morning is that Mr. Bush is being timid.

As you mentioned, the plan the president will unveil in Chicago today, the price tag runs more than $600 billion over 10 years. It is based on accelerating tax cuts already passed by the Congress.

The centerpiece is eliminating the taxation, the income tax on dividends you get if you have a 401(k) or if you own stocks. There's also speeding up the elimination of the so-called marriage penalty on two-earner couples, new child care credits, new help for unemployed Americans to help them find jobs.

The president's critics out in numbers even before the president unveils his plan, saying the Bush approach favors the rich and will explode the federal deficit. Mr. Bush says those critics are wrong.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The critics haven't seen the plan. This is a plan that provides tax relief to the working citizens. It's a plan that is a very fair plan. It's a plan that recognizes when somebody has more of their own money, they're likely to spend it, which creates more jobs.

(END VIDEO CLIP)

KING: Democrats say they have a much more modest stimulus plan. It focuses on about $136 billion, much of that in tax relief to low and moderate-income Americans. The Democrats saying they have the right approach. Again, they say Mr. Bush wants to explode the federal budget deficit.

Democrats say they've looked long and hard at the economy. They think a much smaller stimulus package is the right answer.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The Democratic plan stimulates; the president's plan procrastinates. The president's plan is too little, too late and much too irresponsible. The Democratic plan is significant, fast-acting and is fiscally responsible. We stimulate the job market. The president's plan stimulates the stock market.

(END VIDEO CLIP)

KING: Mr. Bush wants action from the Congress as soon as possible. That's one reason he is unveiling the details today, not holding them three weeks until the State of the Union address.

This initiative sets up a major test. Remember, after the midterm elections, everyone saying President Bush has more clout with the Republican Congress, but after those elections, the Democrats also saying they would be much more aggressive in challenging this White House's domestic priorities. The economy will be the biggest battle of the new Congress in the New Year, at least for the next several weeks -- Paula.

ZAHN: John, I'd like to talk jobs for a moment, because the Democrats say under their plan, they believe that about a million new jobs would be created. What are the Republicans saying about the president's plan?

KING: Mr. Bush says a million or more. Remember, the big defining line in this debate will be that more than one-and-a-half million jobs have been lost in the U.S. economy since George W. Bush became president of the United States. The president, of course, argues that recession began during the Clinton administration and just got worse after he took office, then exacerbated by the September 11 attacks. But that will be the defining debate.

But the bottom line here at the White House, they know the deficit will go up, but if you look at this proposal on dividends, to ease the taxation, eliminate the taxation on dividends, the defining moment for the White House here is they believe Americans are much more focused on their 401(k) statements than they are on the unemployment report every month. That will be a defining part of the politics of this debate that, again, will dominate the next several weeks as Congress comes back to work.

ZAHN: John King, thanks for the update -- appreciate it.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.