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American Morning

President's Domestic Agenda Remains a Dividing Line

Aired January 30, 2002 - 07:33   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.
PAULA ZAHN, CNN ANCHOR: United in war, divided at home, Congress is firmly behind the plan to take the war on terror to the next level beyond Afghanistan, but it's the president's domestic agenda that remains a dividing line.

Joining us now with the Democratic Party perspective on the president's State of the Union address is Senate Majority Leader Tom Daschle -- welcome back, sir -- glad to have you with us this morning.

SEN. TOM DASCHLE (D-SD), MAJORITY LEADER: Good morning, Paula.

ZAHN: First of all, what did you think of the president's pronouncements about Iraq, Iran and North Korea being likely targets in this war on terror?

DASCHLE: Paula, I think it is the next step. Clearly, we have got a lot of work yet to do in Afghanistan, but as we look globally, as we look worldwide about where else we need to be concerned, those are the three countries that come to mind. Those are the three countries that have to be targeted. So I think the president enjoys broad bipartisan support in his effort to ensure that we don't see another 9/11 by ignoring the perils of ignoring these three countries.

ZAHN: So you see absolutely no discord on the congressional front, if in fact, the U.S. decides to launch a strike against Iraq?

DASCHLE: Well, obviously we want to see the details, and we want to be consulted, and with all of the prerequisites, I think it is important for us to be full partners here. But there is a clear understanding that this isn't over -- that we have got to go to so- called phase two here. And as we look at what is required in phase two, looking at these three countries and recognizing the danger they present to the United States is clearly a high priority.

ZAHN: Well, I know the Democrats have tried in earnest to try to separate foreign issues from domestic issues, which the president made very direct linkages to last night. It's interesting to note in an overnight poll, when it comes to the issues of the economy, 73 percent of those folks polled in this CNN-USA Today Gallup Poll, felt that the Bush economic proposals would end the recession. What kind of a challenge doest that represent to you as the Democrats try to sell their own program? You can't ignore those numbers.

DASCHLE: Well, Paula, I hope they are right. I think the president is basking in the glow of his very strong personal popularity, and the American people are giving him the benefit of the doubt on all of the issues. That if he can do as well as he has in Afghanistan with the economy, let's give him the opportunity. I think that's basically what the American people are saying. What we are saying is...

ZAHN: So are you telling us this morning that you are willing to give him the benefit of the doubt on this one? I mean, you are the guy that was out there last week accusing him of Enron-ing -- Enron- izing the economy.

DASCHLE: Well, no, what I said was that was really the perception of the American people. I do think that the Democrats' responsibility as the opposition is to support him where we can, support him in the goals, but to ensure that we find a common ground on the details and propose alternatives. We don't support privatizing social security, and we don't support taking $1 trillion of the social security and Medicare trust funds and devoting them to other purposes with the baby boomers about to retire in about six years.

So there are some very important details that have to be examined carefully, and I think it's important for us to call attention to these issues and have the kind of public debate that the American people expect as well. The president will stay popular, and we have to deal with that, and we recognize it and acknowledge it for all that it presents for the country. But I do think that we also have a responsibility to think objectively and try to present a good debate to the American people about these issues.

ZAHN: And you are the man who has to deal with a number of Republicans calling you and obstructionist.

DASCHLE: Well...

ZAHN: They are blaming you for not getting an economic stimulus package through. It was interesting to note last night in the speech when it came to the issue of tax cuts that Dick Gephardt was among those that stood up and clapped, when the president talked about how pleased Americans were when they received their first check. Was he odd man out in the Democrat Party last night? We just showed that video.

DASCHLE: Well, I think that the Democrats are every bit as supportive of tax cuts, Paula, as the Republicans. We support them. We just want to be sure that they are fair, that they are cost- contained, that we don't aggravate the long-term fiscal situation. We have got to be careful about that, and I think that's really what we have been saying. Let's have tax cuts. Let's make sure that we do the kinds of things to stimulate the economy. But let's do it in a balanced and fiscally responsible manner.

ZAHN: Senator, before we let you go, "The Wall Street Journal" is reporting this morning that some Democrats within hours of the president's State of the Union address were circulating a memo encouraging Democrats to continue to inflame the Enron issue to hurt the president's credibility. Couldn't that backfire? DASCHLE: I think it could. I don't know where that memo came from, Paula. I haven't seen it, but I wouldn't support that. The last thing we should do is politicize this scandal. There is a tremendous amount of work to be done to get the facts and find out what we have to do to ensure that it doesn't happen again. We don't need to politicize it, and I am disappointed that a memo like that would be circulated.

ZAHN: And what do you make of the news that the head of the DNC, Terry McAuliffe, made a $100,000 investment in Global Crossing, a company that later went belly up? He sold the stock for $18 million several years before that company went bankrupt.

DASCHLE: Well...

ZAHN: Isn't this clearly a nonpartisan issue, the issue of the influence that folks who have political access have on the system?

DASCHLE: Well, I think it is nonpartisan. Obviously people are going to invest in the market, and I am sure you and I both have done that, and I think that that's as it should be. That's our capitalist system. We ought to be embracing it. What we want to do though...

ZAHN: I've never made $18 million on a $100,000 trade, have you?

DASCHLE: No, I haven't either. What we want to do though is to be sure that if there is abuse, regardless of what kind of abuse, that we rid ourselves of it. And I am, by far, not making any connection to abuse with what Terry did. I think he just made a good investment, and we ought to look for investments like that. But I do think that that's really what the Enron scandal investigation is all about. What happened, how did it happen, how can we prevent it from happening again? And we are going to get to the bottom of it, and I am confident we can do it on a bipartisan basis.

ZAHN: All right. But as you know, Republicans are saying this actually takes the steam out of Democrats' argument when it comes to Enron. Just a quick closing on that, and then we have got to move along.

DASCHLE: Well, I will let the American people decide who is to blame and who is responsible, but clearly, I think that they expect us to do as good a job as we can in getting the facts and correcting whatever problems exist.

ZAHN: Senator Daschle, good of you to join us on AMERICAN MORNING.

DASCHLE: Glad to do it.

ZAHN: I know you had a very long day yesterday -- appreciate your time this morning.

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