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CNN Live At Daybreak

Money in Your Pocket?

Aired May 16, 2003 - 06:33   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 COSTELLO, CNN ANCHOR: In Washington, President Bush considers the Senate tax cut measure a big success, even though he didn't get all of what he wanted.
CNN's Chris Burns joins us from the White House with more on that.

But you've got to believe the president is pretty happy today -- Chris.

CHRIS BURNS, CNN CORRESPONDENT: Well, you've got to believe that. It's hard to gauge jubilation in a driving rain.

But this morning definitely there is satisfaction being expressed by the White House. The president issuing a statement early this morning commending the Congress for passage of this tax bill, saying it shows a commitment to create jobs. He says that it has all elements of his tax bill, and that's true, but not to the degree that he was asking for.

And the main thing, though, the centerpiece is that he got his dividend tax cut; and, in fact, 100 percent over three years. He was constantly arguing that this was double taxation, because, first, companies are taxed for their profits, and then when it's passed on as dividends to stockholders, it's taxed again.

So, he managed to get away with that by pushing it through, talking to Americans, going out and barnstorming with the argument that you can keep more of your own money, you can create jobs, create a million jobs by the end of next year. Read: next year's elections. And that is a big gamble, because if it does not come through, the Democrats could be saying, I told you so.

Now, the other elements include a $400 child tax credit increase. That raises it up to $1,000. More tax breaks for small businesses, which do create most of the jobs in a growth economy, by the way. And other elements, the marriage penalty will be reduced.

So, a lot of elements that the president hopes will be pushed through, but, as you say, there has to be the conference committee with the House, which has a $550 billion cut over 10 years. We'll have to see how that plays out -- Carol.

COSTELLO: Somewhere in the middle, I'll bet. Chris Burns, we'll let you get out of the driving rainstorm. Many thanks.

BURNS: Thank you. 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 May 16, 2003 - 06:33   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: In Washington, President Bush considers the Senate tax cut measure a big success, even though he didn't get all of what he wanted.
CNN's Chris Burns joins us from the White House with more on that.

But you've got to believe the president is pretty happy today -- Chris.

CHRIS BURNS, CNN CORRESPONDENT: Well, you've got to believe that. It's hard to gauge jubilation in a driving rain.

But this morning definitely there is satisfaction being expressed by the White House. The president issuing a statement early this morning commending the Congress for passage of this tax bill, saying it shows a commitment to create jobs. He says that it has all elements of his tax bill, and that's true, but not to the degree that he was asking for.

And the main thing, though, the centerpiece is that he got his dividend tax cut; and, in fact, 100 percent over three years. He was constantly arguing that this was double taxation, because, first, companies are taxed for their profits, and then when it's passed on as dividends to stockholders, it's taxed again.

So, he managed to get away with that by pushing it through, talking to Americans, going out and barnstorming with the argument that you can keep more of your own money, you can create jobs, create a million jobs by the end of next year. Read: next year's elections. And that is a big gamble, because if it does not come through, the Democrats could be saying, I told you so.

Now, the other elements include a $400 child tax credit increase. That raises it up to $1,000. More tax breaks for small businesses, which do create most of the jobs in a growth economy, by the way. And other elements, the marriage penalty will be reduced.

So, a lot of elements that the president hopes will be pushed through, but, as you say, there has to be the conference committee with the House, which has a $550 billion cut over 10 years. We'll have to see how that plays out -- Carol.

COSTELLO: Somewhere in the middle, I'll bet. Chris Burns, we'll let you get out of the driving rainstorm. Many thanks.

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