Bush Tells Congress to Put Economy Ahead of Politics
By Catherine Dodge and Holly Rosenkrantz
Jan. 28 (Bloomberg) — President George W. Bush, delivering his final State of the Union address, urged Congress to set aside election-year politics and act quickly on an economic stimulus plan and other measures he said the country needs.
The president said he recognized the anxiety many Americans feel because of the slump in housing, higher unemployment and rising prices for food and gasoline.
“At kitchen tables across our country, there is concern about our economic future,” Bush said in a nationally televised address from the House chamber of the Capitol. “In the long run, Americans can be confident about our economic growth.”
He called for passage of the $150 billion package of rebates for individuals and tax breaks for businesses and warned lawmakers against altering the compromise reached after extensive bipartisan negotiations. “That would delay it or derail it, and neither option is acceptable,” Bush said.
“In this election year, let us show our fellow Americans that we recognize our responsibilities and are determined to meet them,” he said.
Entering his final year in office facing a slumping economy, still dealing with an unpopular war in Iraq and public approval ratings in the low 30s, Bush, 61, offered few new initiatives in a speech that was about equally divided between domestic and foreign policy.
`First Step’
In the Democratic response to the address, Kansas Governor Kathleen Sebelius, called the stimulus proposal a good “first step” toward meeting the countries economic challenges. The nation isn’t as divided as the political debate in Washington suggests, she said.
Bush made another appeal to lawmakers to make permanent his 2001 and 2003 tax cuts, which he said would bolster the economy, and he vowed to veto any tax increases.
Bush said the federal budget he will submit to Congress next week will keep his administration on target for a surplus in 2012. It will terminate or reduce 151 “wasteful or bloated programs,” saving $18 billion, Bush said.
Extending the tax cuts — and their impact on the budget — likely will be a matter left to Bush’s successor. The nonpartisan Congressional Budget Office said last week that extending the cuts beyond their Dec. 31, 2010 expiration date would cost more than $150 billion in 2011 alone. Costs would quickly grow in subsequent years, the agency said. By 2013, annual costs would reach $300 billion; by 2016, they would grow to $400 billion, CBO said.
Veto Threat
Bush also vowed to veto any legislation for fiscal 2009 that doesn’t reduce special spending programs, known as earmarks, by half.
“The people’s trust in their government is undermined by congressional earmarks — special interest projects that are often snuck in at the last minute, without discussion or debate,” Bush said.
Among Bush’s new proposals is a $300 million program to help children in poor neighborhoods get access to private schools. He also wants to create a $2 billion international fund to speed development of more efficient energy technology in rapidly developing nations, including China and India, to combat climate change. He said his administration is committed to forging an international agreement to limit greenhouse gasses.
He also prodded lawmakers to finish work on pending legislation, such as a renewal of an electronic surveillance law to fight terrorism, legislation to extend his signature education law, the No Child Left Behind Act, and approval of trade agreements with Colombia, Panama and South Korea.
`Unfinished Business’
“We have unfinished business before us, and the American people expect us to get it done,” Bush said.
Among the items still awaiting final action is legislation to update the Federal Housing Administration and creation of a tougher regulator for government-chartered mortgage-finance companies Fannie Mae and Freddie Mac.
Bush said those measures will help the country “weather turbulent times in the housing market.”
He also reminded lawmakers that they have “two other pressing challenges” that have not been dealt with: revamping the entitlement programs of Social Security, Medicare and Medicaid and resolving the impasse over illegal immigration. Neither is likely to be finished before his term ends.
On foreign policy, Bush made no mention of the National Intelligence Estimate last month that concluded that Iran suspended its nuclear weapons program in 2003.
Instead, he said Tehran is developing ballistic missiles of increasing range and continues to develop its capability to enrich uranium, which could be used to create a nuclear weapon. He also said Iran is funding and training militia groups in Iraq, supporting Hezbollah terrorists in Lebanon and backing Hamas’s efforts to undermine Israeli-Palestinian peace.
Confronting Iran
“America will confront those who threaten our troops, we will stand by our allies, and we will defend our vital interests in the Persian Gulf,” he said.
On Iraq, Bush said his goal for the final year of his presidency is to shift American troops away from leading operations in the country, and toward partnering with Iraqi forces. At the same time, he said he was reluctant to push fast to bring more troops home. “We must do the difficult work today, so that years from now people will look back and say that this generation rose to the moment,” he said.
Beyond stabilizing Iraq and containing Iran, Bush said he will work to help Israelis and Palestinians reach a peace agreement before the end of the year.
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