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Bush and Kerry in Iowa; 9/11 Reforms

Aired October 20, 2004 - 10:59   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.


RICK SANCHEZ, CNN ANCHOR: Iowa has room for two today. Both presidential contenders are making speeches there next hour. And we're going to explore the importance of Iowa next.
DARYN KAGAN, CNN ANCHOR: Also, grumpy, irritable, anxiety- ridden? If these words are making you think of a man in your life -- and no, Rick, I did not write that -- you won't want to miss our next hour. We'll look at what might be behind his behavior as the second hour of CNN LIVE TODAY begins right now.

As always, we kick off the hour with a look at what is happening "Now in the News."

The presidential contenders -- a live picture there from Iowa -- duking it out in the Midwest right now. You see President Bush. John Kerry is also in Iowa at this hour, firing up their respective supporters. Live reports from both campaigns are just ahead.

In Baghdad, Army Reserve Staff Sergeant Ivan Chip Frederick will be sentenced tomorrow for his role in abusing inmates at Abu Ghraib prison. In a plea bargain with military prosecutors, Frederick today pleaded guilty to five separate charges in the first day of his court- martial. He is the highest-ranking soldier charged so far in the scandal.

In Congress, disputes over how to overhaul the nation's intelligence apparatus are being hashed out right now in a conference committee. The proposed legislation is based on the recommendations of the 9/11 Commission, but there are major differences between the House and Senate versions, which is holding up the final bill. A live report from Capitol Hill coming up in about 15 minutes.

And in the American League Pennant race, the Red Sox will be looking for a reversal of fortune in the House that Ruth built tonight. The long-suffering club made history last night, erasing a three game deficit to tie the series with the Yankees. If Boston prevails tonight in game seven of the ALCS, it will be their first trip to the World Series since 1918.

SANCHEZ: Since they got rid of the bambino.

KAGAN: Just a minute past 11:00 a.m. on the East Coast, just past 8:00 a.m. on the West. From CNN Center in Atlanta, good morning once again. I'm Daryn Kagan.

SANCHEZ: And I'm Rick Sanchez.

And the race for the White House will run through Iowa.

The presidential can as are worlds apart on these issues, but at this hour they are just about 80 miles apart on the campaign trail. That's how close they are.

Both President Bush and Senator Kerry are campaigning in Iowa. Bush is holding a rally in Mason City. Senator Kerry is going to be speaking in Waterloo.

Now, President Bush lost Iowa to Al Gore four years ago by a narrow margin. In the tight race with Senator Kerry, the Bush campaign hopes that the swing state will actually swing their way in the end.

Dana Bash -- pardon me -- she's bringing us the very latest now where Bush -- Mr. Bush is holding a rally, and this is in mason city.

Dana Bash, thank you very much. I understand you're in, what, the north fairgrounds, right, Dana?

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: That's right, exactly. We are not too far from Minneapolis, actually, the northwest part of Iowa. And as you saw, the president just arrived. He actually just started speaking.

And you mentioned how close the margin was last time around. It was actually just a little over 4,000 votes that the president lost the state by to Al Gore. And it's important to note that Iowa is the first of three stops and essentially a day trip from the White House. Three stops in blue states.

So states that have gone Democrat for at least three elections. And the president has worked really hard to get this state, the state of Minnesota and Wisconsin on his side this time around. And if you look at sort of the chess game of trying to win enough states that add up to the magic 270 in the electoral college, we should take a look at some numbers, all these electoral votes he's hitting today.

First of all, here in Iowa, that's seven electoral votes. Then Wisconsin is 10. Minnesota is also 10.

If you ad those up, Rick, you get 27. Well, it just so happens that's the same number of electoral votes as Florida. And actually, seven more than another coveted state, which is Ohio. So this could be an insurance policy, trying to hit states that he -- that could add up to another very important state.

But also, just in term of the message, Rick, as you mentioned, the president's opponent is 80 miles away. And he's giving what Kerry aides say is going to be a blistering attack against the president on terrorism.

So we are in that critical time of not letting anything go unanswered. So the president, we're told, is going to reprieve some of that we heard earlier in the week on terrorism, saying that Senator Kerry would have a policy of protest and retreat. But he's also, we're told, going to talk about some domestic issues that are important to the people in Iowa, like the economy and health care.

SANCHEZ: Dana Bash following that story for us there. We thank you so much, Dana.

We should let you know that as soon as the president starts speaking on some of the salient issues that we've been following for you throughout the day, we'll go right to him -- Daryn.

KAGAN: And it's funny how this works. Both the senator and the president speaking in the same hour, same state.

Senator Kerry is trying to hammer home his argument against President Bush over the war in Iraq. National correspondent Kelly Wallace is with the Kerry campaign. She is in Waterloo, Iowa, this morning.

Good morning.

KELLY WALLACE, CNN NATIONAL CORRESPONDENT: Good morning, Daryn.

And as you know, of course, Iowa symbolically important to John Kerry. This state, of course, the place where he turned the campaign around when he won the Iowa caucuses in January. His speech today, really two goals in mind. Number one, to and neutralize attacks composing from President Bush, but also to try and win over those undecided voters who still haven't decided which candidate can better protect the United States.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Senator John Kerry!

WALLACE (voice-over): Last night in Dayton, Ohio, a backdrop that made this baseball lover smile. From center field, Senator John Kerry firing off what he hopes will be a winning pitch.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I'm looking you in the eye and I'm telling you, I will fight a smarter, more effective, tougher war on terror. And I'll make America safer.

WALLACE: According to excerpts released by his campaign, in his speech later here in Waterloo, Iowa, the senator will say, "The president's failures in Iraq have made us weaker, not stronger, in the war on terrorism."

Senator Kerry will try to make the case that he, as opposed to the president, can win wars in Iraq and against terrorism by getting help from U.S. allies. He is expected to say, "Mr. President, look behind you. There's no one there. It's not leadership if no one follows."

The strategy now, according to aides, try to narrow the president's advantage in the polls when it comes to handling the war on terrorism and widen the senator's advantage on domestic issues. The rhetoric almost exclusively aimed at the small number of undecided. KERRY: They call themselves conservative? That's radical, ladies and gentlemen. That's the most radical, economic policy I've ever heard of.

WALLACE: And now it's also about getting out the vote. For the Democrats, there's one person who turns out the party faithful like no one else.

KERRY: Our friend, President Clinton.

WALLACE: The senator was asked about the former president, who is still recovering from heart surgery, during a stop yesterday in Pennsylvania.

KERRY: You know, I think it's possible in the next days former President Clinton may be here working. I mean, we're all working. And I'm not going to leave any vote unasked for. So we're going to work hard.

(END VIDEOTAPE)

WALLACE: And Senator Kerry was expected to begin his speech at the top of the hour, but he shares some things in common with the former president. Both tend to run a little bit behind schedule.

So we're expecting the senator to get under way just moments from now. And we should let you know, a senior Kerry adviser telling CNN details still being finalized, but that it is likely the former president will be something alongside Senator Kerry in Philadelphia next week.

And we have a comment coming from the office of the former president. The office is saying, "President Clinton is pleased to be able to help John Kerry in this very important campaign for the future of our country."

So details still being finalized, Daryn. But we could see the former president and the senator together next week. Back to you.

KAGAN: All right. Kelly in Waterloo, Iowa. Thank you for that.

Let's head 83 miles away, down Route 18 in Iowa. President Bush is on time and speaking. Let's listen in.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: ... in nearly 20 years. Today, the home ownership rate is at an all-time high in America.

(APPLAUSE)

BUSH: In the past 13 months we've added more than 1.9 million new jobs. The unemployment rate in America is 5.4 percent lower than the average rate of the 1970s, the 1980s and the 1990s.

(APPLAUSE) BUSH: Farm income is up. The unemployment rate in Iowa is 4.5 percent. This economy is moving forward, and we're not going to go back to the days of tax and spend.

(APPLAUSE)

BUSH: To keep this economy strong, we'll continue (AUDIO GAP).

KAGAN: All right. It looks like we're having a little bit of trouble getting the signal in there from Mason City, Iowa. We're working on that.

We are working on bringing you portions not just of President Bush's speech today in Iowa, but also Senator Kerry. It looks like we've fixed our bug. Let's listen in.

BUSH: We have extended contracts in the Conservation Reserve Program to help protect our wildlife, to help improve land and to help our farm families. We're expanding broadband technology to make high- speed Internet access available to all Americans by 2007. We're opening up markets for Iowa farmers all across the world.

(APPLAUSE)

BUSH: We are pursuing an energy strategy that encourages conservation, increased domestic production and renewables like ethanol and bio-diesel. When I campaigned in your state in 2000 I told the people of Iowa, I support ethanol. I kept my word.

(APPLAUSE)

BUSH: To make sure jobs remain here, America must be the best place in the world to do business. That means less regulations on our job creators. That means we must do something about the frivolous lawsuits that make it hard for small business owners to expand their companies.

(APPLAUSE)

BUSH: We will open up markets around the world. We will make sure that we are wise about how we spend your money. And to make sure this economy continues to grow, we must keep your taxes low.

(APPLAUSE)

BUSH: Now, my opponent has his own history on the economy. In 20 years as a senator from Massachusetts, he has built the record of a senator from Massachusetts. He has voted to raise taxes 98 times.

I want to remind you he voted to tax Social Security benefits. You know, he's been there for 20 years. That's about five tax increases -- five tax increases every year. I call that a predictable pattern. I'd call that an indicator.

(APPLAUSE) BUSH: He looked in the camera the other night with a straight face and said he's not going to raise taxes on anyone who earns less than $200,000. The problem with that is to keep that promise he would have to break almost all of his other ones.

(APPLAUSE)

BUSH: He has proposed more than $2.2 trillion in new federal spending. That's "trillion" with a "T." And so I asked him, "How are you going to pay for it?" He said, oh, I'll just tax the rich. And we've heard that before, haven't we?

You see, you can't raise enough money by raising the top two brackets to pay for $2.2 trillion of new spending. There is a gap between what he has promised and what he can deliver. And guess who usually has to fill that gap?

There's also something else wrong with taxing the rich. The rich hire lawyers and accountants for a reason, to slip the tab and stick you with the bill. The good news is we're not going to let them tax you. We're going to carry Iowa and win in November.

(APPLAUSE)

KAGAN: We've been listening in to President Bush. He's speaking this hour in Mason City, Iowa. We're working on bringing you portions from the campaign trail, both of the Bush and Kerry campaigns.

It turns out that Senator Kerry is also in Iowa, about 80 miles away in Waterloo. And he is expected to speak later this hour. You'll hear portions of that speech. And we're listening to portions of President Bush.

We want to take a closer look at why both candidates focusing on Iowa today. Seven electoral votes up for grabs. Our senior political analyst, Bill Schneider, joining us in Washington D.C.

Good morning, Bill.

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Good morning, Daryn.

KAGAN: First, let's look at some immediate history. President Bush running against Al Gore in 2000. This is a state he lost, but not by a big margin.

SCHNEIDER: That's right. This is one of the closest states in the country. Look at this.

In Iowa, in 2000, Al Gore carried the state, but by only a little over 4,000 votes. That is one-third of one percent of the vote. That is a very close state and that is why both parties think Iowa is winnable. They're both there.

And remember something else. Iowa is where it all began. That was where the caucuses started in January, where John Kerry really went on the road to the nomination, where he beat Howard Dean decisively. And it was the site of the famous Dean scream.

KAGAN: The Dean scream, when things turned around. Now, because this is such a politically active state, no shortage of pollsters in Iowa. Let's look at some of the latest numbers. It does, even though they are changing a little bit, appear to be a dead heat.

SCHNEIDER: It does, indeed. The latest number was a poll by the American Research Group which showed Iowa exactly tied, 47, Bush, 47, Kerry, Nader, 2. You cannot get much closer than that. By the way, Nader is on the ballot in Iowa.

A poll taken just about the same time by the "Chicago Tribune" shows Bush ahead, but only slightly. Bush 47, Kerry, 45. A two-point lead for Bush.

And now look at this. About a week before that, a poll was taken by the Hubert Humphrey Institute, and that poll showed Bush, 46, Kerry, 47, and Nader with 4 percent. So that shows Kerry in the lead.

We've just shown you three polls, one with Kerry leading by one, one with Bush leading by two, and one with an absolute dead heat. Three polls, three results, all too close to call.

KAGAN: And so we'd have to wait until Election Day to see how this one is going to play out in Iowa?

SCHNEIDER: We hope it will be over on Election Day. But Iowa is a very decorous state. They don't go in for large-scale recounts and controversies. It's a state with very, very high voter turnout, and this year the voter turnout looks higher than ever.

Both sides are scrambling to get every last voter in Iowa, Republican and Democrat, to the polls. We're likely to see a phenomenal turnout among Iowa voters, particularly with both campaigns campaigning very hard there.

KAGAN: As we said, interesting how not only do they end up in the same state, but giving their speeches in the same hour.

SCHNEIDER: That's right. And this has happened before.

Remember, about a month ago, they both showed up in Davenport, Iowa. That was ground zero in the campaign.

Another thing about Iowa. From 1952 through 1984, Iowa voted Republican every single time, with the exception of Lyndon Johnson. That's nine elections, eight of them Republican.

Since 1984, Iowa has tilted Democratic. It voted for the Democrats in 1988, Dukakis. It voted for Clinton in 1992 and '96, and as we saw, very narrowly for Al Gore in 2000. So Iowa has gone from being a prevailingly Republican state to a predominantly Democratic state, but again by a very narrow margin.

KAGAN: Bill Schneider, thanks for helping us look at Iowa.

SCHNEIDER: Sure.

KAGAN: Thank you.

And as I was mentioning, as well, we're going to have Senator Kerry, of course, and his campaign speech coming up in just a bit.

SANCHEZ: Up next, also, in the wake of the 9/11, the push is on today on Capitol Hill to try and make anti-terror recommendations a reality. Also, the biggest push is coming from families.

KAGAN: And later, Scott Peterson's defense team tries to turn the tables on investigators in the courtroom. We are live coming up.

(COMMERCIAL BREAK)

SANCHEZ: Welcome back. We're going to give you a quick setup of something that we're going to be following out of Waterloo, Iowa. This is where Senator John Kerry, interestingly enough, like the president in the same state, will soon be speaking.

We understand there are two or three speakers ahead of the senator. This is going to be a hard-hitting speech, we understand, by Senator Kerry. He's going to hit the president hard on Iraq in particular, speaking about the president's seeming ability to confuse the war on terror with the war in Iraq.

Some very terse language we expect the senator from Massachusetts to use in this speech. And that is why we will be following it, and we'll bring it to you as it happens.

Meanwhile on Capitol Hill, an open meeting now under way on legislation to enact the anti-terror recommendations from the 9/11 Commission. Congressional negotiators must work out major differences between the House and the Senate bills. And nearby, families of 9/11 victims are -- pardon me -- expressing their frustration that three years after the terrorist attacks a bill has still not reached the president.

CNN's Rudi Bakhtiar is here. She's going to fill us in on some of the details of this story.

Rudi, to you.

RUDI BAKHTIAR, CNN CORRESPONDENT: Hi, Rick.

Congressional Democrats and 9/11 family members were before cameras just a short time ago urging congressmen and senators to find a way to draft a final version of that 9/11 bill. The bill which would create the post of a national intelligence director, among some other reforms, has been mired in dispute. The House and Senate versions of the bill are widely different, and there's concern that this impasse is going to prevent a bill from being passed in this session of Congress.

(BEGIN VIDEO CLIP) UNIDENTIFIED FEMALE: We're losing precious time as we're trying to move forward to get the core recommendations, the national intelligence director, the national counterterrorism center and the Civil Liberties Board and a bill on the president's desk.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Right now, this is not time to be a Republican. It's not time to be a Democrat. It's not time to be an opportunist. It's time to be an American and to get past the important reforms that we need to get past now.

(END VIDEO CLIP)

BAKHTIAR: Now, President Bush, seen here in late July with members of the 9/11 Commission, has been urging the two houses to adopt and deliver a bill to his desk before the presidential election, now just a couple of weeks away. The president's national security adviser, Condoleezza Rice, sent a letter to the House and Senate yesterday reiterating the president's desire and urging that the process move swiftly -- Rick.

SANCHEZ: Listening to the speaker today, it doesn't sound like they're going to be moving too swiftly. He says it probably -- they probably won't meet until week for a first meeting, he says. This may not happen before Election Day, right?

BAKHTIAR: That is correct. And the problem is, is that the Senate -- there's a big difference between the Senate's version and the House version. The Senate version provides broad powers to the newly-created post of the national intelligence director, and the House version limits the budgetary authority and personnel control of the intel director, an approach which has been roundly criticized by the 9/11 Commission members, 9/11 family advocates and the White House.

SANCHEZ: Rudi Bakhtiar following that the story for us. We thank you for that update.

KAGAN: All right. Coming up, prescription politics. We continue our look at the hottest issues leading up to Election Day.

Also, we'll be going back to Iowa, to Waterloo, for -- to see a portion of the -- Senator Kerry's speech. There Standsfield Turner, the former CIA director, at the podium right now.

Both candidates saying they have a cure for the health care situation. Things heating up in the final two weeks before the election.

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

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Aired October 20, 2004 - 10:59   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RICK SANCHEZ, CNN ANCHOR: Iowa has room for two today. Both presidential contenders are making speeches there next hour. And we're going to explore the importance of Iowa next.
DARYN KAGAN, CNN ANCHOR: Also, grumpy, irritable, anxiety- ridden? If these words are making you think of a man in your life -- and no, Rick, I did not write that -- you won't want to miss our next hour. We'll look at what might be behind his behavior as the second hour of CNN LIVE TODAY begins right now.

As always, we kick off the hour with a look at what is happening "Now in the News."

The presidential contenders -- a live picture there from Iowa -- duking it out in the Midwest right now. You see President Bush. John Kerry is also in Iowa at this hour, firing up their respective supporters. Live reports from both campaigns are just ahead.

In Baghdad, Army Reserve Staff Sergeant Ivan Chip Frederick will be sentenced tomorrow for his role in abusing inmates at Abu Ghraib prison. In a plea bargain with military prosecutors, Frederick today pleaded guilty to five separate charges in the first day of his court- martial. He is the highest-ranking soldier charged so far in the scandal.

In Congress, disputes over how to overhaul the nation's intelligence apparatus are being hashed out right now in a conference committee. The proposed legislation is based on the recommendations of the 9/11 Commission, but there are major differences between the House and Senate versions, which is holding up the final bill. A live report from Capitol Hill coming up in about 15 minutes.

And in the American League Pennant race, the Red Sox will be looking for a reversal of fortune in the House that Ruth built tonight. The long-suffering club made history last night, erasing a three game deficit to tie the series with the Yankees. If Boston prevails tonight in game seven of the ALCS, it will be their first trip to the World Series since 1918.

SANCHEZ: Since they got rid of the bambino.

KAGAN: Just a minute past 11:00 a.m. on the East Coast, just past 8:00 a.m. on the West. From CNN Center in Atlanta, good morning once again. I'm Daryn Kagan.

SANCHEZ: And I'm Rick Sanchez.

And the race for the White House will run through Iowa.

The presidential can as are worlds apart on these issues, but at this hour they are just about 80 miles apart on the campaign trail. That's how close they are.

Both President Bush and Senator Kerry are campaigning in Iowa. Bush is holding a rally in Mason City. Senator Kerry is going to be speaking in Waterloo.

Now, President Bush lost Iowa to Al Gore four years ago by a narrow margin. In the tight race with Senator Kerry, the Bush campaign hopes that the swing state will actually swing their way in the end.

Dana Bash -- pardon me -- she's bringing us the very latest now where Bush -- Mr. Bush is holding a rally, and this is in mason city.

Dana Bash, thank you very much. I understand you're in, what, the north fairgrounds, right, Dana?

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: That's right, exactly. We are not too far from Minneapolis, actually, the northwest part of Iowa. And as you saw, the president just arrived. He actually just started speaking.

And you mentioned how close the margin was last time around. It was actually just a little over 4,000 votes that the president lost the state by to Al Gore. And it's important to note that Iowa is the first of three stops and essentially a day trip from the White House. Three stops in blue states.

So states that have gone Democrat for at least three elections. And the president has worked really hard to get this state, the state of Minnesota and Wisconsin on his side this time around. And if you look at sort of the chess game of trying to win enough states that add up to the magic 270 in the electoral college, we should take a look at some numbers, all these electoral votes he's hitting today.

First of all, here in Iowa, that's seven electoral votes. Then Wisconsin is 10. Minnesota is also 10.

If you ad those up, Rick, you get 27. Well, it just so happens that's the same number of electoral votes as Florida. And actually, seven more than another coveted state, which is Ohio. So this could be an insurance policy, trying to hit states that he -- that could add up to another very important state.

But also, just in term of the message, Rick, as you mentioned, the president's opponent is 80 miles away. And he's giving what Kerry aides say is going to be a blistering attack against the president on terrorism.

So we are in that critical time of not letting anything go unanswered. So the president, we're told, is going to reprieve some of that we heard earlier in the week on terrorism, saying that Senator Kerry would have a policy of protest and retreat. But he's also, we're told, going to talk about some domestic issues that are important to the people in Iowa, like the economy and health care.

SANCHEZ: Dana Bash following that story for us there. We thank you so much, Dana.

We should let you know that as soon as the president starts speaking on some of the salient issues that we've been following for you throughout the day, we'll go right to him -- Daryn.

KAGAN: And it's funny how this works. Both the senator and the president speaking in the same hour, same state.

Senator Kerry is trying to hammer home his argument against President Bush over the war in Iraq. National correspondent Kelly Wallace is with the Kerry campaign. She is in Waterloo, Iowa, this morning.

Good morning.

KELLY WALLACE, CNN NATIONAL CORRESPONDENT: Good morning, Daryn.

And as you know, of course, Iowa symbolically important to John Kerry. This state, of course, the place where he turned the campaign around when he won the Iowa caucuses in January. His speech today, really two goals in mind. Number one, to and neutralize attacks composing from President Bush, but also to try and win over those undecided voters who still haven't decided which candidate can better protect the United States.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Senator John Kerry!

WALLACE (voice-over): Last night in Dayton, Ohio, a backdrop that made this baseball lover smile. From center field, Senator John Kerry firing off what he hopes will be a winning pitch.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I'm looking you in the eye and I'm telling you, I will fight a smarter, more effective, tougher war on terror. And I'll make America safer.

WALLACE: According to excerpts released by his campaign, in his speech later here in Waterloo, Iowa, the senator will say, "The president's failures in Iraq have made us weaker, not stronger, in the war on terrorism."

Senator Kerry will try to make the case that he, as opposed to the president, can win wars in Iraq and against terrorism by getting help from U.S. allies. He is expected to say, "Mr. President, look behind you. There's no one there. It's not leadership if no one follows."

The strategy now, according to aides, try to narrow the president's advantage in the polls when it comes to handling the war on terrorism and widen the senator's advantage on domestic issues. The rhetoric almost exclusively aimed at the small number of undecided. KERRY: They call themselves conservative? That's radical, ladies and gentlemen. That's the most radical, economic policy I've ever heard of.

WALLACE: And now it's also about getting out the vote. For the Democrats, there's one person who turns out the party faithful like no one else.

KERRY: Our friend, President Clinton.

WALLACE: The senator was asked about the former president, who is still recovering from heart surgery, during a stop yesterday in Pennsylvania.

KERRY: You know, I think it's possible in the next days former President Clinton may be here working. I mean, we're all working. And I'm not going to leave any vote unasked for. So we're going to work hard.

(END VIDEOTAPE)

WALLACE: And Senator Kerry was expected to begin his speech at the top of the hour, but he shares some things in common with the former president. Both tend to run a little bit behind schedule.

So we're expecting the senator to get under way just moments from now. And we should let you know, a senior Kerry adviser telling CNN details still being finalized, but that it is likely the former president will be something alongside Senator Kerry in Philadelphia next week.

And we have a comment coming from the office of the former president. The office is saying, "President Clinton is pleased to be able to help John Kerry in this very important campaign for the future of our country."

So details still being finalized, Daryn. But we could see the former president and the senator together next week. Back to you.

KAGAN: All right. Kelly in Waterloo, Iowa. Thank you for that.

Let's head 83 miles away, down Route 18 in Iowa. President Bush is on time and speaking. Let's listen in.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: ... in nearly 20 years. Today, the home ownership rate is at an all-time high in America.

(APPLAUSE)

BUSH: In the past 13 months we've added more than 1.9 million new jobs. The unemployment rate in America is 5.4 percent lower than the average rate of the 1970s, the 1980s and the 1990s.

(APPLAUSE) BUSH: Farm income is up. The unemployment rate in Iowa is 4.5 percent. This economy is moving forward, and we're not going to go back to the days of tax and spend.

(APPLAUSE)

BUSH: To keep this economy strong, we'll continue (AUDIO GAP).

KAGAN: All right. It looks like we're having a little bit of trouble getting the signal in there from Mason City, Iowa. We're working on that.

We are working on bringing you portions not just of President Bush's speech today in Iowa, but also Senator Kerry. It looks like we've fixed our bug. Let's listen in.

BUSH: We have extended contracts in the Conservation Reserve Program to help protect our wildlife, to help improve land and to help our farm families. We're expanding broadband technology to make high- speed Internet access available to all Americans by 2007. We're opening up markets for Iowa farmers all across the world.

(APPLAUSE)

BUSH: We are pursuing an energy strategy that encourages conservation, increased domestic production and renewables like ethanol and bio-diesel. When I campaigned in your state in 2000 I told the people of Iowa, I support ethanol. I kept my word.

(APPLAUSE)

BUSH: To make sure jobs remain here, America must be the best place in the world to do business. That means less regulations on our job creators. That means we must do something about the frivolous lawsuits that make it hard for small business owners to expand their companies.

(APPLAUSE)

BUSH: We will open up markets around the world. We will make sure that we are wise about how we spend your money. And to make sure this economy continues to grow, we must keep your taxes low.

(APPLAUSE)

BUSH: Now, my opponent has his own history on the economy. In 20 years as a senator from Massachusetts, he has built the record of a senator from Massachusetts. He has voted to raise taxes 98 times.

I want to remind you he voted to tax Social Security benefits. You know, he's been there for 20 years. That's about five tax increases -- five tax increases every year. I call that a predictable pattern. I'd call that an indicator.

(APPLAUSE) BUSH: He looked in the camera the other night with a straight face and said he's not going to raise taxes on anyone who earns less than $200,000. The problem with that is to keep that promise he would have to break almost all of his other ones.

(APPLAUSE)

BUSH: He has proposed more than $2.2 trillion in new federal spending. That's "trillion" with a "T." And so I asked him, "How are you going to pay for it?" He said, oh, I'll just tax the rich. And we've heard that before, haven't we?

You see, you can't raise enough money by raising the top two brackets to pay for $2.2 trillion of new spending. There is a gap between what he has promised and what he can deliver. And guess who usually has to fill that gap?

There's also something else wrong with taxing the rich. The rich hire lawyers and accountants for a reason, to slip the tab and stick you with the bill. The good news is we're not going to let them tax you. We're going to carry Iowa and win in November.

(APPLAUSE)

KAGAN: We've been listening in to President Bush. He's speaking this hour in Mason City, Iowa. We're working on bringing you portions from the campaign trail, both of the Bush and Kerry campaigns.

It turns out that Senator Kerry is also in Iowa, about 80 miles away in Waterloo. And he is expected to speak later this hour. You'll hear portions of that speech. And we're listening to portions of President Bush.

We want to take a closer look at why both candidates focusing on Iowa today. Seven electoral votes up for grabs. Our senior political analyst, Bill Schneider, joining us in Washington D.C.

Good morning, Bill.

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Good morning, Daryn.

KAGAN: First, let's look at some immediate history. President Bush running against Al Gore in 2000. This is a state he lost, but not by a big margin.

SCHNEIDER: That's right. This is one of the closest states in the country. Look at this.

In Iowa, in 2000, Al Gore carried the state, but by only a little over 4,000 votes. That is one-third of one percent of the vote. That is a very close state and that is why both parties think Iowa is winnable. They're both there.

And remember something else. Iowa is where it all began. That was where the caucuses started in January, where John Kerry really went on the road to the nomination, where he beat Howard Dean decisively. And it was the site of the famous Dean scream.

KAGAN: The Dean scream, when things turned around. Now, because this is such a politically active state, no shortage of pollsters in Iowa. Let's look at some of the latest numbers. It does, even though they are changing a little bit, appear to be a dead heat.

SCHNEIDER: It does, indeed. The latest number was a poll by the American Research Group which showed Iowa exactly tied, 47, Bush, 47, Kerry, Nader, 2. You cannot get much closer than that. By the way, Nader is on the ballot in Iowa.

A poll taken just about the same time by the "Chicago Tribune" shows Bush ahead, but only slightly. Bush 47, Kerry, 45. A two-point lead for Bush.

And now look at this. About a week before that, a poll was taken by the Hubert Humphrey Institute, and that poll showed Bush, 46, Kerry, 47, and Nader with 4 percent. So that shows Kerry in the lead.

We've just shown you three polls, one with Kerry leading by one, one with Bush leading by two, and one with an absolute dead heat. Three polls, three results, all too close to call.

KAGAN: And so we'd have to wait until Election Day to see how this one is going to play out in Iowa?

SCHNEIDER: We hope it will be over on Election Day. But Iowa is a very decorous state. They don't go in for large-scale recounts and controversies. It's a state with very, very high voter turnout, and this year the voter turnout looks higher than ever.

Both sides are scrambling to get every last voter in Iowa, Republican and Democrat, to the polls. We're likely to see a phenomenal turnout among Iowa voters, particularly with both campaigns campaigning very hard there.

KAGAN: As we said, interesting how not only do they end up in the same state, but giving their speeches in the same hour.

SCHNEIDER: That's right. And this has happened before.

Remember, about a month ago, they both showed up in Davenport, Iowa. That was ground zero in the campaign.

Another thing about Iowa. From 1952 through 1984, Iowa voted Republican every single time, with the exception of Lyndon Johnson. That's nine elections, eight of them Republican.

Since 1984, Iowa has tilted Democratic. It voted for the Democrats in 1988, Dukakis. It voted for Clinton in 1992 and '96, and as we saw, very narrowly for Al Gore in 2000. So Iowa has gone from being a prevailingly Republican state to a predominantly Democratic state, but again by a very narrow margin.

KAGAN: Bill Schneider, thanks for helping us look at Iowa.

SCHNEIDER: Sure.

KAGAN: Thank you.

And as I was mentioning, as well, we're going to have Senator Kerry, of course, and his campaign speech coming up in just a bit.

SANCHEZ: Up next, also, in the wake of the 9/11, the push is on today on Capitol Hill to try and make anti-terror recommendations a reality. Also, the biggest push is coming from families.

KAGAN: And later, Scott Peterson's defense team tries to turn the tables on investigators in the courtroom. We are live coming up.

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SANCHEZ: Welcome back. We're going to give you a quick setup of something that we're going to be following out of Waterloo, Iowa. This is where Senator John Kerry, interestingly enough, like the president in the same state, will soon be speaking.

We understand there are two or three speakers ahead of the senator. This is going to be a hard-hitting speech, we understand, by Senator Kerry. He's going to hit the president hard on Iraq in particular, speaking about the president's seeming ability to confuse the war on terror with the war in Iraq.

Some very terse language we expect the senator from Massachusetts to use in this speech. And that is why we will be following it, and we'll bring it to you as it happens.

Meanwhile on Capitol Hill, an open meeting now under way on legislation to enact the anti-terror recommendations from the 9/11 Commission. Congressional negotiators must work out major differences between the House and the Senate bills. And nearby, families of 9/11 victims are -- pardon me -- expressing their frustration that three years after the terrorist attacks a bill has still not reached the president.

CNN's Rudi Bakhtiar is here. She's going to fill us in on some of the details of this story.

Rudi, to you.

RUDI BAKHTIAR, CNN CORRESPONDENT: Hi, Rick.

Congressional Democrats and 9/11 family members were before cameras just a short time ago urging congressmen and senators to find a way to draft a final version of that 9/11 bill. The bill which would create the post of a national intelligence director, among some other reforms, has been mired in dispute. The House and Senate versions of the bill are widely different, and there's concern that this impasse is going to prevent a bill from being passed in this session of Congress.

(BEGIN VIDEO CLIP) UNIDENTIFIED FEMALE: We're losing precious time as we're trying to move forward to get the core recommendations, the national intelligence director, the national counterterrorism center and the Civil Liberties Board and a bill on the president's desk.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Right now, this is not time to be a Republican. It's not time to be a Democrat. It's not time to be an opportunist. It's time to be an American and to get past the important reforms that we need to get past now.

(END VIDEO CLIP)

BAKHTIAR: Now, President Bush, seen here in late July with members of the 9/11 Commission, has been urging the two houses to adopt and deliver a bill to his desk before the presidential election, now just a couple of weeks away. The president's national security adviser, Condoleezza Rice, sent a letter to the House and Senate yesterday reiterating the president's desire and urging that the process move swiftly -- Rick.

SANCHEZ: Listening to the speaker today, it doesn't sound like they're going to be moving too swiftly. He says it probably -- they probably won't meet until week for a first meeting, he says. This may not happen before Election Day, right?

BAKHTIAR: That is correct. And the problem is, is that the Senate -- there's a big difference between the Senate's version and the House version. The Senate version provides broad powers to the newly-created post of the national intelligence director, and the House version limits the budgetary authority and personnel control of the intel director, an approach which has been roundly criticized by the 9/11 Commission members, 9/11 family advocates and the White House.

SANCHEZ: Rudi Bakhtiar following that the story for us. We thank you for that update.

KAGAN: All right. Coming up, prescription politics. We continue our look at the hottest issues leading up to Election Day.

Also, we'll be going back to Iowa, to Waterloo, for -- to see a portion of the -- Senator Kerry's speech. There Standsfield Turner, the former CIA director, at the podium right now.

Both candidates saying they have a cure for the health care situation. Things heating up in the final two weeks before the election.

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