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President Bush Focuses on Economy in Last State of the Union

Posted:January 29, 2007PRINTER FRIENDLY VERSION: PDF
President Bush delivered his final State of the Union address Monday night, focusing on the economy and government spending in response to market troubles and sluggish economic growth.
President Bush
President Bush asked Congress to support his economic stimulus plan during his last State of the Union Address.

With his approval rating hovering around 30 percent and just 11 months left in office, Mr. Bush is confronting the "lame duck" phase, when it is difficult for a president on his way out to achieve new goals.

But his speech addressed some new objectives, and pushed to continue funding programs such as No Child Left Behind and AIDS-relief funding in Africa.

It's the economy


Stock trader

Fear of a recession has driven Congress and Mr. Bush to work together on a stimulus plan.
The president began by calling for Congress to pass his proposed $150 billion economic stimulus package to help boost the economy, which is "undergoing a period of uncertainty."

The plan includes tax rebates of about $600 per person in the hope that citizens would immediately plow that money back into the U.S. economy.

"We must trust people with their own money and empower them to grow our economy," the president said.

Mr. Bush also called for making tax breaks he instituted earlier in his presidency permanent, and issued a warning to the Democratic-controlled Congress that any bill that seeks to introduce new taxes would be vetoed.

"With all the other pressures on their finances, American families should not have to worry about the Federal Government taking a bigger bite out of their paychecks," he said.

Targeting earmarks


U.S. Capitol

President Bush criticized Congressional earmarks, which are tacked onto bills to pay for specific projects.
The president also had tough words for Congress over its use of "earmarking." Earmarks are funds that go to benefit a specific project or location in a lawmaker's congressional districts and are added on to final bills without ever being voted on, or even debated. Earmarks in the 2008 budget included one million dollars for "potato research" and $284,000 for "blackbird management in North Dakota."

"If these items are truly worth funding, the Congress should debate them in the open and hold a public vote," Mr. Bush said.

He issued a veto warning far any appropriations bill that does not cut the number of earmarks by half.

Foreign policy


U.S. armored vehicle in Iraq

Mr. Bush said his troop surge in Iraq has reduced violence and weakened terrorist groups.
On foreign policy, there were no dramatic declarations like the speech of five years ago when Mr. Bush named Iraq, Iran and North Korea the "axis of evil." The president repeated his recent goal of achieving a new peace accord in the Middle East before the end of his presidency.

He also said last year's 30,000-soldier strong troop surge in Iraq achieved a drop of violence in some of the country's most dangerous areas.

"Some may deny the surge is working," Mr. Bush said. "But among the terrorists, there is no doubt. Al Qaeda is on the run in Iraq, and this enemy will be defeated."

The president said 20,000 troops will be returning home in the next few months, but did not discuss any plan or timetable for withdrawal from Iraq.

Democratic response


Senate Majority Leader Harry Reid

Senate Democrats such as Majority Leader Harry Reid of Nevada might push for more benefits to poor and unemployed people in the stimulus package.
The Democratic response was delivered by the governor of Kansas, Kathleen Sebelius, who called President Bush's stimulus package a "temporary fix" and "only the first step toward meeting our challenges and solving our problems."

Democrats in the Senate are expected to push for more rebates for poor people and an increase in unemployment benefits.

Sebelius also called for an end to partisan bickering, saying, "If more Republicans in Congress stand with us this year, we won't have to wait for a new president to restore America's role in the world and fight a more effective war on terror."

--Compiled by Talea Miller for NewsHour Extra
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