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Bush Focuses on Economy

Aired May 02, 2003 - 14:06   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.


MILES O'BRIEN, CNN ANCHOR: President Bush left the aircraft carrier Abraham Lincoln this morning to make his speech in Silicon Valley. He talked about the economy, but the setting was United Defense Industries. That firm developed the Bradley fighting vehicle, a U.S. mainstay during the Iraq war.
CNN's Chris Burns is live in Santa Clara, California, where that speech occurred.

Hello, Chris.

CHRIS BURNS, CNN WHITE HOUSE CORRESPONDENT: Hi, Miles. Well, another one of those vehicles is one the president paid tribute to. It's right behind me. It's the Hercules tank recovery vehicle. If it looks a little bit familiar, it certainly is, the president paying tribute to it in his speech.

That is the one that helped to topple, pull down the statue of Saddam Hussein in Baghdad. A similar model is what we saw in Baghdad. The president paying tribute to the men and women who built that as well as the Bradley Fighting Vehicle.

Dovetailing this with his popularity as a wartime president, he's trying to also force the Congress to approve his tax cut package he says will create one million jobs. He's making arguments about how the family of four making $40,000 a year, would see their tax bill cut from $1,078 down to $45. The president saying that the unemployment figures that came out today, that bad news this morning, is all the more reason to pass this tax bill.

(START VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We need a bold economic recovery package so people can find work.

(END VIDEO CLIP)

BURNS: Now the president, of course, under fire, not only from among Democrats, but also among Republicans, saying in this time of a deficit riding perhaps more than $400 billion this year, that's the last thing that we need is a tax cut to try to stimulate jobs. The president coming back in his own speech today saying well of course there's a deficit. There was a war here. But we also need to create jobs by cutting taxes. So the argument goes on.

There is word from the House side that they would like to perhaps cut that dividend tax cut, instead of 100% reduction, bring it down to say a 15% tax on dividends, as well as capital gains. The White House coming back, saying that is a creative proposal. Apparently they are still willing to talk, but they still want to battle for the full $550 billion-plus tax cut over 10 years, an uphill battle the president hopes has been bolstered by his speech today -- Miles.

O'BRIEN: OK, that's Chris Burns in Santa Clara, California. Thank you very much.

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 2, 2003 - 14:06   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: President Bush left the aircraft carrier Abraham Lincoln this morning to make his speech in Silicon Valley. He talked about the economy, but the setting was United Defense Industries. That firm developed the Bradley fighting vehicle, a U.S. mainstay during the Iraq war.
CNN's Chris Burns is live in Santa Clara, California, where that speech occurred.

Hello, Chris.

CHRIS BURNS, CNN WHITE HOUSE CORRESPONDENT: Hi, Miles. Well, another one of those vehicles is one the president paid tribute to. It's right behind me. It's the Hercules tank recovery vehicle. If it looks a little bit familiar, it certainly is, the president paying tribute to it in his speech.

That is the one that helped to topple, pull down the statue of Saddam Hussein in Baghdad. A similar model is what we saw in Baghdad. The president paying tribute to the men and women who built that as well as the Bradley Fighting Vehicle.

Dovetailing this with his popularity as a wartime president, he's trying to also force the Congress to approve his tax cut package he says will create one million jobs. He's making arguments about how the family of four making $40,000 a year, would see their tax bill cut from $1,078 down to $45. The president saying that the unemployment figures that came out today, that bad news this morning, is all the more reason to pass this tax bill.

(START VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We need a bold economic recovery package so people can find work.

(END VIDEO CLIP)

BURNS: Now the president, of course, under fire, not only from among Democrats, but also among Republicans, saying in this time of a deficit riding perhaps more than $400 billion this year, that's the last thing that we need is a tax cut to try to stimulate jobs. The president coming back in his own speech today saying well of course there's a deficit. There was a war here. But we also need to create jobs by cutting taxes. So the argument goes on.

There is word from the House side that they would like to perhaps cut that dividend tax cut, instead of 100% reduction, bring it down to say a 15% tax on dividends, as well as capital gains. The White House coming back, saying that is a creative proposal. Apparently they are still willing to talk, but they still want to battle for the full $550 billion-plus tax cut over 10 years, an uphill battle the president hopes has been bolstered by his speech today -- Miles.

O'BRIEN: OK, that's Chris Burns in Santa Clara, California. Thank you very much.

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