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Bush Gets Set to Report on State of the Union to Nation Looking for Answers
Aired January 28, 2003 - 13:02 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.
KYRA PHILLIPS, CNN ANCHOR: President Bush gets set to report on the State of the Union to a nation that's looking for answers. Americans are eager to know whether the country is going to war, and if so, why.
And what about the sagging economy? What will the president say about that. Over the next few moments, we'll get a preview, Greg Clarkin on the money issue, Sanjay Gupta on the state of the nation's health, but we'll start at the White House with CNN's Suzanne Malveaux -- Suzanne.
SUZANNE MALVAEUX, CNN CORRESPONDENT: President Bush will prepare Americans for a possible war against Iraq. The president insists he still wants peace, but he will lay out a detailed case to the rest of the world. He is also going to talk about the sense of urgency, the need to deal with Saddam Hussein sooner, as opposed to later. We've also been told that the president is going to talk about the alleged link between Saddam Hussein, the Iraqi regime and Al Qaeda. This is an argument that didn't gain much traction in the fall. It is being reintroduced.
President Bush earlier today meeting with his cabinet to discuss his domestic, as well as his international agenda. The administration very much aware that they still need to make the case to the American people in terms of what to do next with Saddam Hussein.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Tonight, I'm going in front of our nation to talk about the great challenges that face our country, but no doubt that we'll be able to handle those challenges, because we are a great country. I'll talk about our deep desire for peace, peace not only here at home, but peace in troubled regions of the world.
(END VIDEO CLIP)
MALVEAUX: Now, Kyra, there will be an incredible amount of activity in the days to come. President Bush will meet with the prime minister of Italy, as well as Britain. British Prime Minister Tony Blair at Camp David. They'll be discussing of course Iraq. Also he'll be talking with U.N. Security Council members to bring his case against Saddam Hussein.
We are told from administration officials to expect new evidence, evidence that was once classified, now declassified to be presented to U.S. allies, as well as to the American people. Now some of that being satellite imagery actually showing Iraqi officials moving some of their weapons parts around after inspectors have gone to various sites, as well as intercepts, and one thing we'll be hearing as well is the whole idea, the debate over a Security Council resolution. It was last year the administration was dead set against that. They though it would be a real road block to progress. Now White House spokesman Ari Fleischer early this morning saying it is desirable, but not mandatory. This is really just one of the signs to show how much the administration is moving toward trying to win the support of allies in terms of what to do next -- Kyra.
PHILLIPS: All right, Suzanne, a little side note, everyone seems to wonder who will be sitting next to the first lady during a time like this.
MALVEAUX: Well, actually, we just got the list of the first lady's box. There are 29 seats, two that are reserved for Secret Service. There is, of course, Mrs. Bush, Mrs. Cheney, as well as the president's mother, sister and sister-in-law, adviser Karen Hughes, also Pulitzer Prize author David MaCulluh (ph). Some other guests include those who represent some of those that would be affected by his domestic agenda, a nun, several doctors, and representatives from the Army, Air Force and Marines.
There is a reservist who served in Afghanistan in the war on terror, also a local hero and Marine Corps corporal from New Jersey who went into the Pentagon some 14 times, we're told, to rescue those on September 11th. And I should also mention as well, there is going to be a seat that is left empty. The administration says -- and I'm quoting here -- "It symbolizes the empty place many Americans will always have at their tables and in their lives because of the attacks on September 11th."
PHILLIPS: Suzanne Malveaux, live from the White House, thank you.
All right, let's talk money issues. Greg Clarkin covering that for us -- Greg.
GREG CLARKIN, CNN CORRESPONDENT: Kyra, right now, consumers, businesses and investors all have one thing in common, and that is the belief that it's too shaky a time do anything bold.
Now today, one indicator showed consumer confidence hitting a nine-year low in January, and that means shoppers may be putting off some purchases. Meanwhile, investors really want little to do with stocks, and it means businesses see very little reason to expand and add jobs in this uncertain environment.
So tonight, when President Bush speaks, the nation's workers, employee, employers, investors will be listening carefully, they'll be looking for some word on just how the president plans to jumpstart the economy.
Now it's expected that the president will pitch a $674 billion economic plan. So What does that mean for the individual? Well, this plan is loaded with tax cuts. Let's start first with the highlights. We'll have the marriage tax, the proposal to scrap the so-called marriage penalty who hurts working couples who file jointly. The president also wants to boost the child care tax credit. It's $600. He'd like it to go to $1,000.
Now the White House says these and other moves will put more than $1,000 back in the pockets of more than 90 million taxpayers. The president is again expected to call for eliminating taxes on stock dividends, saying it will boost investment and create jobs. Critics say it's benefit is more psychological than practical.
Now over the last few days, we've been out speaking to people here in New York about what they would like to hear from the president tonight on the economy, and here's what they told us.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I would like to see him do a little more in order to give businesses incentives to hire people again, to not lay so many people off.
UNIDENTIFIED MALE: I am working at the messenger service and I am stuck, because I'm making ends meet, you know, and I think it should be more work -- he should concentrate on bringing more jobs to the area.
(END VIDEO CLIP)
CLARKIN: Now, in the end, consumers and business leaders say it really does all come down to jobs. Right now, companies are too afraid to invest and expand. They're afraid to risk in this uncertain environment, and that means few jobs will be created, and that means consumer confidence may continue to erode -- Kyra.
PHILLIPS: All right, Greg Clarkin, thank you.
Now in the preview that he gave this morning, Mr. Bush did mention that he'll talk about American health. He spoke of what he called a modern health care system that is especially geared toward seniors.
Also in New York today, our medical correspondent, Dr. Sanjay Gupta.
Hi, Sanjay.
DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: Hey, good afternoon, Kyra.
Yes, there are three really hot issues that are probably going to be part of the State of the Union and part of the president's message on health care. Take a quick look at them. You can see prescription drug benefits for seniors. We talked a lot about that. No question that will probably be topping the list, modernizing Medicare, access to health care, all sort of big issues. But with the prescription drug coverage, you know, when Medicare actually came about in the '60s, prescription drugs were not that big a part of the overall health care cost, and fast forward 35 years, and certainly prescription drugs are a huge part of that. A lot of these seniors on Medicare not getting adequate coverage for their prescription drugs.
Take a look at how the United States sort of stacks up overall around the world in terms of cost of drugs. Certainly in the United States, drugs are more expensive here on average, a lot of different reasons for that.
And if you take a look at some of the most common drugs out there, that especially a lot of our seniors are taking, again, in the United States, compared to Canada, a huge increase in the pricers over here in the United States.
Now, there have been a lot of concern about this. The president has talked about different plans try and offer prescription drug coverage to seniors, and not making seniors choose between buying food, paying rent and actually buying drugs.
Here are a couple of the options that the president is actually talking about, has talked about, may again mention tonight. First of all, just the existing fee-for-service program. That's the existing Medicare program, the way it stands today.
But a little more controversial is option number two, which is actually the privatization of some of these programs, actually offering seniors a prescription drug plan if they actually offer to go to a private program, such as a private HMO, and finally, just private plans with prescription benefits overall, completely opting out of Medicare.
Kyra, this is a hugely controversial point. It has been for quite some time. Barbara Kennelly, who is president of the National Commission for the Preservation of Social Security and Medicare -- that's a mouthful -- but this is what she says: "Prescription drug benefits for current beneficiaries should not be held hostage by the requirement to enroll in a private plan." Basically, in a nutshell, Kyra, what she's saying, what the controversy is, should we sort of be holding hostage seniors by actually encouraging them to go to a private program, not giving them the stability of Medicare by sort of enticing them with a prescription drug coverage plan. There are two very different points of view on that. We'll hear more about probably tonight -- Kyra.
PHILLIPS: All right, Dr. Sanjay Gupta, 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
Looking for Answers>
Aired January 28, 2003 - 13:02 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: President Bush gets set to report on the State of the Union to a nation that's looking for answers. Americans are eager to know whether the country is going to war, and if so, why.
And what about the sagging economy? What will the president say about that. Over the next few moments, we'll get a preview, Greg Clarkin on the money issue, Sanjay Gupta on the state of the nation's health, but we'll start at the White House with CNN's Suzanne Malveaux -- Suzanne.
SUZANNE MALVAEUX, CNN CORRESPONDENT: President Bush will prepare Americans for a possible war against Iraq. The president insists he still wants peace, but he will lay out a detailed case to the rest of the world. He is also going to talk about the sense of urgency, the need to deal with Saddam Hussein sooner, as opposed to later. We've also been told that the president is going to talk about the alleged link between Saddam Hussein, the Iraqi regime and Al Qaeda. This is an argument that didn't gain much traction in the fall. It is being reintroduced.
President Bush earlier today meeting with his cabinet to discuss his domestic, as well as his international agenda. The administration very much aware that they still need to make the case to the American people in terms of what to do next with Saddam Hussein.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Tonight, I'm going in front of our nation to talk about the great challenges that face our country, but no doubt that we'll be able to handle those challenges, because we are a great country. I'll talk about our deep desire for peace, peace not only here at home, but peace in troubled regions of the world.
(END VIDEO CLIP)
MALVEAUX: Now, Kyra, there will be an incredible amount of activity in the days to come. President Bush will meet with the prime minister of Italy, as well as Britain. British Prime Minister Tony Blair at Camp David. They'll be discussing of course Iraq. Also he'll be talking with U.N. Security Council members to bring his case against Saddam Hussein.
We are told from administration officials to expect new evidence, evidence that was once classified, now declassified to be presented to U.S. allies, as well as to the American people. Now some of that being satellite imagery actually showing Iraqi officials moving some of their weapons parts around after inspectors have gone to various sites, as well as intercepts, and one thing we'll be hearing as well is the whole idea, the debate over a Security Council resolution. It was last year the administration was dead set against that. They though it would be a real road block to progress. Now White House spokesman Ari Fleischer early this morning saying it is desirable, but not mandatory. This is really just one of the signs to show how much the administration is moving toward trying to win the support of allies in terms of what to do next -- Kyra.
PHILLIPS: All right, Suzanne, a little side note, everyone seems to wonder who will be sitting next to the first lady during a time like this.
MALVEAUX: Well, actually, we just got the list of the first lady's box. There are 29 seats, two that are reserved for Secret Service. There is, of course, Mrs. Bush, Mrs. Cheney, as well as the president's mother, sister and sister-in-law, adviser Karen Hughes, also Pulitzer Prize author David MaCulluh (ph). Some other guests include those who represent some of those that would be affected by his domestic agenda, a nun, several doctors, and representatives from the Army, Air Force and Marines.
There is a reservist who served in Afghanistan in the war on terror, also a local hero and Marine Corps corporal from New Jersey who went into the Pentagon some 14 times, we're told, to rescue those on September 11th. And I should also mention as well, there is going to be a seat that is left empty. The administration says -- and I'm quoting here -- "It symbolizes the empty place many Americans will always have at their tables and in their lives because of the attacks on September 11th."
PHILLIPS: Suzanne Malveaux, live from the White House, thank you.
All right, let's talk money issues. Greg Clarkin covering that for us -- Greg.
GREG CLARKIN, CNN CORRESPONDENT: Kyra, right now, consumers, businesses and investors all have one thing in common, and that is the belief that it's too shaky a time do anything bold.
Now today, one indicator showed consumer confidence hitting a nine-year low in January, and that means shoppers may be putting off some purchases. Meanwhile, investors really want little to do with stocks, and it means businesses see very little reason to expand and add jobs in this uncertain environment.
So tonight, when President Bush speaks, the nation's workers, employee, employers, investors will be listening carefully, they'll be looking for some word on just how the president plans to jumpstart the economy.
Now it's expected that the president will pitch a $674 billion economic plan. So What does that mean for the individual? Well, this plan is loaded with tax cuts. Let's start first with the highlights. We'll have the marriage tax, the proposal to scrap the so-called marriage penalty who hurts working couples who file jointly. The president also wants to boost the child care tax credit. It's $600. He'd like it to go to $1,000.
Now the White House says these and other moves will put more than $1,000 back in the pockets of more than 90 million taxpayers. The president is again expected to call for eliminating taxes on stock dividends, saying it will boost investment and create jobs. Critics say it's benefit is more psychological than practical.
Now over the last few days, we've been out speaking to people here in New York about what they would like to hear from the president tonight on the economy, and here's what they told us.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I would like to see him do a little more in order to give businesses incentives to hire people again, to not lay so many people off.
UNIDENTIFIED MALE: I am working at the messenger service and I am stuck, because I'm making ends meet, you know, and I think it should be more work -- he should concentrate on bringing more jobs to the area.
(END VIDEO CLIP)
CLARKIN: Now, in the end, consumers and business leaders say it really does all come down to jobs. Right now, companies are too afraid to invest and expand. They're afraid to risk in this uncertain environment, and that means few jobs will be created, and that means consumer confidence may continue to erode -- Kyra.
PHILLIPS: All right, Greg Clarkin, thank you.
Now in the preview that he gave this morning, Mr. Bush did mention that he'll talk about American health. He spoke of what he called a modern health care system that is especially geared toward seniors.
Also in New York today, our medical correspondent, Dr. Sanjay Gupta.
Hi, Sanjay.
DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: Hey, good afternoon, Kyra.
Yes, there are three really hot issues that are probably going to be part of the State of the Union and part of the president's message on health care. Take a quick look at them. You can see prescription drug benefits for seniors. We talked a lot about that. No question that will probably be topping the list, modernizing Medicare, access to health care, all sort of big issues. But with the prescription drug coverage, you know, when Medicare actually came about in the '60s, prescription drugs were not that big a part of the overall health care cost, and fast forward 35 years, and certainly prescription drugs are a huge part of that. A lot of these seniors on Medicare not getting adequate coverage for their prescription drugs.
Take a look at how the United States sort of stacks up overall around the world in terms of cost of drugs. Certainly in the United States, drugs are more expensive here on average, a lot of different reasons for that.
And if you take a look at some of the most common drugs out there, that especially a lot of our seniors are taking, again, in the United States, compared to Canada, a huge increase in the pricers over here in the United States.
Now, there have been a lot of concern about this. The president has talked about different plans try and offer prescription drug coverage to seniors, and not making seniors choose between buying food, paying rent and actually buying drugs.
Here are a couple of the options that the president is actually talking about, has talked about, may again mention tonight. First of all, just the existing fee-for-service program. That's the existing Medicare program, the way it stands today.
But a little more controversial is option number two, which is actually the privatization of some of these programs, actually offering seniors a prescription drug plan if they actually offer to go to a private program, such as a private HMO, and finally, just private plans with prescription benefits overall, completely opting out of Medicare.
Kyra, this is a hugely controversial point. It has been for quite some time. Barbara Kennelly, who is president of the National Commission for the Preservation of Social Security and Medicare -- that's a mouthful -- but this is what she says: "Prescription drug benefits for current beneficiaries should not be held hostage by the requirement to enroll in a private plan." Basically, in a nutshell, Kyra, what she's saying, what the controversy is, should we sort of be holding hostage seniors by actually encouraging them to go to a private program, not giving them the stability of Medicare by sort of enticing them with a prescription drug coverage plan. There are two very different points of view on that. We'll hear more about probably tonight -- Kyra.
PHILLIPS: All right, Dr. Sanjay Gupta, 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
Looking for Answers>
