Bush Rallies Republicans Around Tax Plan

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Bush Rallies Republicans Around Tax Plan

By CARL HULSE

NY Times, February 10, 2003

WASHINGTON, Feb. 9 — President Bush urged Republican members of Congress today to pass his economic plan, seeking to rally them behind proposed tax cuts that have caused some Republican skittishness on Capitol Hill.

"The tax reduction plan that I want you to pass and I want to sign will put more money into the pockets of the entrepreneurs of America, which is good for those who are looking for work," Mr. Bush told Republican members of the House and Senate attending a retreat at a West Virginia resort, according to a transcript provided by the Federal Document Clearing House Inc.

As he sorted through a laundry list of his domestic initiatives, the president specifically sought support for one of the more contentious elements of his economic plan — the elimination of income tax on stock dividends.

"It makes sense to help our seniors and to make the tax code more fair," Mr. Bush said. "The double taxation of dividends is unfair. It is unfair to tax profits and the distribution of those profits."

Democrats have criticized the dividend proposal as too generous to the wealthy and a handful of moderate Republican senators have suggested it needs to be scaled back. In the House, Republican leaders are considering their own economic ideas and may reshape the president's plan as well. Others in the party last week expressed concern over trying to cut taxes when the federal deficit is back on the rise.

With a fight expected in the Senate this week over the nomination of a Washington lawyer, Miguel Estrada, to a federal appeals court, Mr. Bush commended Senate Republicans for "standing strong" behind a nominee whom Democrats have criticized as an extreme conservative.

"I expect the people of the Senate not to hold him up, not to try to talk his nomination into the ground," Mr. Bush said, referring to the threat of a Democratic filibuster, "because Miguel Estrada not only represents the American dream, but will do us proud on the bench."

Republican lawmakers were secluded for the weekend at the Greenbrier resort in White Sulphur Springs for a joint House-Senate retreat that included celebrity entertainment, motivational speakers, strategy sessions and bowling parties, though a snowfall precluded any golf. The resort was closed to other guests. Vice President Dick Cheney spoke earlier in the weekend.

In his remarks before the retreat wrapped up today, Mr. Bush said that while he realized many people were focused on Iraq and international issues, he said he wanted to remind lawmakers "that we've got a domestic agenda that is positive and strong and hopeful and optimistic."

He touched on another domestic issue that is making Congressional Republicans anxious — Medicare changes. The administration is developing a plan to provide older Americans with prescription drug coverage through Medicare, though the specifics remain elusive. Some Republicans have already made it clear to the White House that any plan that forces people to leave the traditional Medicare program to qualify for the drug benefit will be a difficult sell.

Mr. Bush told the lawmakers, "We will address the Medicare issue in a way which enables us to say, as a country, we fulfilled our promise to senior citizens."

He also lobbied for his "compassion agenda," urging support for religion-based social programs, new financing for treatment of AIDS overseas and a mentoring program for children whose parents are in prison.