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Bush turns to battles at home
The Financial Times ^ | April 15, 2003 | James Harding

Posted on 04/14/2003 2:56:38 PM PDT by MadIvan

Fresh from victory in Iraq, President George W. Bush will on Tuesday turn to the lacklustre US economy in the knowledge that a second term in office depends as much on American prosperity as military acclaim.

As US-led forces on Monday took Tikrit, Saddam Hussein's last stronghold, the White House appeared to mark the conclusion of the military campaign with a presidential message of thanks to the troops.

"This time of war has been a time of hardship," Mr Bush said in a televised statement to US service personnel and their families.

His remarks came as the US moved to establish a post-war administration for Iraq, with a meeting of leaders from several different Iraqi factions in the southern city of Nasariyah.

The meeting, the first of several, will be overseen by Jay Garner, the retired US general who heads the new Office of Reconstruction and Humanitarian Assistance. US officials hope the talks will pave the way for a national council that will establish an interim government within a few weeks.

But Mr Bush on Tuesday will shift the emphasis of his administration to the domestic agenda, fighting a seemingly unwinnable battle for a $726bn tax plan in the face of Congressional opposition.

In his first public address on the economy for nearly two months, Mr Bush will mark April 15th - the day that millions of Americans are due to submit their tax forms - with a speech in the White House Rose Garden calling for tax cuts to fuel economic growth and much-needed job creation.

The White House also announced on Monday a concerted effort by the administration, despatching 25 senior officials to speak at 57 events in more than 40 cities over the next two weeks to make the case for tax cuts even in a time of war.

Mr Bush and his closest strategic advisers are mindful of the political fate of his father. As the 41st president, George H.W. Bush led coalition forces to a swift, low -casualty victory over Iraq only to be defeated in his bid for re-election at the US polls less than two years later.

The 43rd president's approval rating bounced back up to 71 per cent over the weekend, after sliding into the 50s. But, regardless of his success in Iraq, the polls show the American public continues to question Mr Bush's management of the economy: In a Newsweek poll published on Monday, 46 per cent of people said they disapproved of Mr Bush's handling of the economy, while 44 per cent approved.

After nearly eight weeks of speeches focused on Iraq, Mr Bush's comments on the economy on Tuesday will be seen as a moment of transition as he switches role from wartime commander-in-chief to campaigning politician with an eye on re-election in 2004.

Karl Rove, his chief political adviser, has been planning the Bush 2004 campaign. While the president led the nation to war, Mr Rove was instructed to keep the embryonic campaign effort out of view. Mr Rove's groundwork on the Bush re-election campaign is now likely to become evident as Mr Bush re-engages with the American people on domestic issues.

Mr Bush will on Wednesday fly to St. Louis, where he will tour a Boeing factory and address the Iraq situation, his budget and the economy.

The president's tax-cut proposals, particularly the central suggestion to eliminate taxes that investors pay on dividends, has run into opposition from both Republicans and Democrats on Capitol Hill.

Charles Grassley, the Republican chairman of the Senate Finance Committee, has pledged to block any more than $350bn in tax cuts in light of concerns about war spending and the rising deficit.

As John Snow, the Treasury secretary; Don Evans, the commerce secretary; and Elaine Chao, the labour secretary, fan out across the US from Tuesday, they will be making the argument that the president is still seeking $726bn in tax cuts. But, referring to a compromise figure, a White House official said on Monday the president is determined to get "at least $550bn" in tax cuts.


TOPICS: Business/Economy; Foreign Affairs; Front Page News; Government; News/Current Events; Politics/Elections; US: District of Columbia; War on Terror
KEYWORDS: bush; domestic; economy; issues; us; victory; wareconomy
The Senators are truly beginning to irritate me. Pass the bloody tax cuts. The world economy needs them. Do it now.

Regards, Ivan

1 posted on 04/14/2003 2:56:38 PM PDT by MadIvan
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To: hoosiermama; Dutchgirl; Freedom'sWorthIt; Carolina; patricia; annyokie; ...
Bump!
2 posted on 04/14/2003 2:56:51 PM PDT by MadIvan
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To: MadIvan
Good grief, what a negative article.
3 posted on 04/14/2003 2:57:48 PM PDT by Brad’s Gramma (Become a Monthly Donor to Free Republic! Please?)
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4 posted on 04/14/2003 2:58:52 PM PDT by Support Free Republic (Your support keeps Free Republic going strong!)
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To: MadIvan
Tax cuts?

How about reducing all taxes, and government 90 percent?

5 posted on 04/14/2003 2:59:41 PM PDT by Joe Hadenuf
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To: Joe Hadenuf
90% ? I'd prefer just bare bones.
6 posted on 04/14/2003 3:00:54 PM PDT by Sonny M ("oderint dum metuant".)
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To: MadIvan
The best way to explain tax cuts to people. In bad economic times, if you were a store and you sold TV's and revenues went down. What would you do, you'd cut prices on your TV's so more people would come in to buy them. Your government, revenues are down, you cut taxes so that they will spend more, so you can tax the money that is being spent over and over again. Good God.
7 posted on 04/14/2003 3:03:21 PM PDT by Sonny M ("oderint dum metuant".)
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To: Brad's Gramma; MadIvan
Good grief, what a negative article.

The Financial Times, despites its title, is really like the New York Times larded up with some straight pro forma finance & stock information.

8 posted on 04/14/2003 3:05:40 PM PDT by dodger
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To: dodger
" has run into opposition from both Republicans and Democrats on Capitol Hill."

Notice the propensity for the press to always refer to two or three Republicans' support as "bi-partisan".

In this case it is an opportunity to put the Republicans first.

As I recall, there was unanimous Republican support for tax cuts in The House. So a few RINOs in The Senate make it "both".

yitbos

9 posted on 04/14/2003 3:22:10 PM PDT by bruinbirdman
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To: bruinbirdman
Yep, same old double standard from the pressies. A Republican bill with a few Demos aboard is 'sharply partisan' whereas an Anti-Republican bill with a few RINO's aboard is sumptuously 'bipartisan'.
10 posted on 04/14/2003 4:03:52 PM PDT by dodger
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To: MadIvan
Sweat not, my friend. If it weren't for September 11th, we would have been out of the recession for well over a year by now, and that was after Dubya only had the helm for a few short months. The economy will be strong again, and soon.
11 posted on 04/14/2003 4:05:31 PM PDT by Mr. Silverback (Nope, no tagline here.)
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To: MadIvan
Time for a national sales tax rather than income taxes. It would be fair, above and beyond anything, and income from savings for retirement (which saves the fed a lot of cash) would not disappear.

Just a few peeves with the tax system.
12 posted on 04/14/2003 4:56:35 PM PDT by Desdemona
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To: bruinbirdman
Carl Cameron said the same identical thing today on FNC.I went ballistic and my wife thought I was in distress. She tries to keep me calm after my Heart Transplant. I kept screaming two 2 Republicans.
13 posted on 04/14/2003 5:08:48 PM PDT by cksharks
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To: cksharks
Perhaps "both" has a quirky Couric meaning, as in "two" Republicans.

yitbos

14 posted on 04/14/2003 5:28:12 PM PDT by bruinbirdman
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To: MadIvan
President Bush needs to take the 70% approval ratings and use them, not sit on his ass like his dad did.

I believe Karl Rove knows how to use the high approval numbers to get President Bush re-elected.

15 posted on 04/14/2003 5:31:28 PM PDT by WildWeasel
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