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CNN Live Sunday

President Faces Political Pressure for Sagging Economy

Aired September 09, 2001 - 16:12   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.
DONNA KELLEY, CNN ANCHOR: Concerns for Washington at home include the brewing budget battle and talk of dipping into Social Security to pay for other programs.

CNN's White House correspondent Kelly Wallace has latest for us from Washington.

Hi, Kelly.

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: Well hi there, Donna.

You know, President Bush is coming under increasing pressure from the left, and even from the right to do more about the sagging economy. Mr. Bush is spending a rare we weekend here at the White House. He headed off to church earlier today with Mrs. Bush.

One thing that's come out today, Republicans stepping up the call for a capital gains tax cut to give a boost to the economy. This would be cutting the tax rate on those profits when you sell your investments from 20 to 15 percent. Now, the White House saying that the president is open minded about such a tax cut, but he is refusing just yet to sign off on one because he believes that those tax rebate checks that have been going out in the mail, combined with recent interest rate cuts will eventually give the economy a kick.

Now, coming from the other side of the aisle, Democrats, they are continuing to criticize the president. They say that he has to do a lot more. That he should come forward with a new budget in light of the changing economic circumstances.

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SEN. TOM DASCHLE (D-SD), MAJORITY LEADER: Well, again, I think it's not really our responsibility to offer ways out of the Bush economy. It's the president that got us to this situation, and I think it's the president that needs to lead us out. I have pledged my cooperation. I have said we'll work with him. But it's really up to him to do it.

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WALLACE: But to that, Republicans say Democrats have no plan of their own and all they're doing is playing the blame game. Republicans say the president has a plan, that he's pushing the tax cut, and also energy and trade bills that he says will lead to an increase in jobs. At the same time, though, Republicans making it very clear that they'd like to see the president and the Congress putting forward more action, again, to give the economy a boost.

(BEGIN VIDEO CLIP)

SEN. TRENT LOTT (R-MS), MINORITY LEADER: We have a plan. It may require additional action by the president and by the Congress, but that's what leadership is all about. When the economy is having difficulty and when people are losing their jobs, you don't stand around and hope for the best, you take action. And I think we should do that.

(END VIDEO CLIP)

WALLACE: Now, Mr. Bush hits the road tomorrow. He will be traveling to Florida to put more attention on education and reading. But Donna, this debate over the economy and the budget and the Social Security surplus definitely likely to continue to take center stage.

Donna, back to you.

KELLEY: Yes, Kelly, they'll keep trying to hammer out that budget. IN the meantime the president is literally tossing coins.

WALLACE: Exactly, literally.

Having a lighter moment today in the Rose Garden, the president enjoying a perk of the job, basically flipping a coin -- the first coin toss kicking off the opening day for NFL season. And there you see the president wishing the players and the coaches good health for a good season. Joining with him some younger players, maybe some future NFL stars there, Donna; you never know.

KELLEY: All right, Kelly Wallace at the White House, thanks very much.

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