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CNN Sunday Morning

Bush, Dems Agree: Economy Improving

Aired April 28, 2002 - 08:37   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 and Democrats on Capital Hill can agree on one thing, that the numbers show the economy is improving.

But here's where they disagree. The president believes permanent tax cuts will help boost things even higher. Democrats are not convinced.

CNN White House correspondent Major Garrett explains.

(BEGIN VIDEOTAPE)

MAJOR GARRETT, CNN CORRESPONDENT (voice-over): For the White House, no domestic issue trumps the economy. And new signs of robust growth were turned swiftly against Democrats who opposed the Bush tax cut.

GEORGE W. BUSH, U.S. PRESIDENT: The tax relief was an incredibly important part of this recovery.

GARRETT: The president even turned up the heat on Democrats who supported his tax cuts, which are due to expire in 2010.

BUSH: That's why, as part of making sure that the economy grows long-term, is that we make the tax relief permanent. So that there is certainty in the tax code.

GARRETT: Three Senate Democrats who face tough GOP challenges this year voted for the Bush tax cuts, but Democrats Johnson of South Dakota, Carnahan of Missouri and Cleland of Georgia have yet to endorse making all of them permanent.

Eager to win back control of the Senate, the president has stumped in all three states, trying to tap into tax cut fever.

BUSH: One of the most important issues we've worked on was making sure the people of South Dakota, and America, got to keep more of their hard-earned dollars.

GARRETT: But Democrats say there are at least two problems with making the tax cuts permanent.

One, it means nothing for today's economy.

REP. IKE SKELTON, MISSOURI: A permanent tax cut is some 10 years away. I'm not sure how that relates to today.

GARRETT: And two, new deficit figures show tax revenue this year fell $60 billion below Congressional projections, meaning the deficit will be $100 billion.

Democrats say tax cuts are feeding this deficit, and future cuts could make matters much worse.

SEN. HARRY REID, NEVADA: I think that Congress should be very careful in jumping aboard these tax cuts. We've tried that once, remember, in the Reagan years.

GARRETT (on camera): The White House believes a stout economy is the key to victory this fall. Democrats don't disagree, but they do doubt that voters will rise up in anger just because Democrats don't promise to approve all the Bush tax cuts again eight years from now.

Major Garrett, CNN, Crawford, Texas.

(END VIDEOTAPE)

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