President Bush rang the opening bell to what may be the fight of his political life after outlining his economic package and budget before a joint session of Congress and the American people Tuesday night.
During his 49-minute speech, Bush emphasized his plans for a $1.6 trillion tax cut, education and health care. However, most of the attention over the next few weeks will be focused on his massive tax cut and its effect on the rest of his budget.
"You see, the growing surplus exists because taxes are too high and government is charging more than it needs," Bush said. "The people of America have been overcharged, and on their behalf, I am here to ask for a refund."
Bush proposed lowering the tax rate of low-income wage earners from 15 percent to 10 percent and said he hopes to lower the top tax rate to 33 percent, because "no one should pay more than a third of the money they earn in federal income taxes."
Bush said he will push for a reduction in the "marriage penalty" tax. The "marriage penalty" forces married couples to pay taxes at a higher rate than singles.
Bush also endorsed the abolition of the "death tax." The "death tax" taxes an estate after a person dies and before it is passed on to his or her heirs.
The Bush tax plan includes doubling the tax credit parents can file per child from $500 to $1,000.
Bush said he hopes his tax cut will boost American consumer spending and invigorate the sluggish economy.
"Tax relief is right, and tax relief is urgent," Bush said. "The long economic expansion that began almost 10 years ago is faltering. To create economic growth and opportunity, we must put money back into the hands of the people who buy goods and create services."
In what seems to be a role reversal of sorts, Democrats are the ones urging fiscal restraint.
"We want a significant tax cut this year," said Senate Democratic leader Tom Daschle. "But we want a different kind. A tax cut that is part of a responsible budget, that lets us pay off the national debt and invest in America's future.
"The president's plan depends far too heavily on a 10-year budget estimate, which is no more reliable than a 10-year weather forecast," Daschle said. "Finally, the president's plan is deeply unfair to middle-income Americans. The wealthiest 1 percent -- people who make an average of over $900,000 a year -- get 43 percent of the president's tax cut."
The largest percentage increase in Bush's budget is reserved for the nation's school systems. Bush said he will triple spending on education over the next five years, adding nearly $5 billion to American schools. Bush reiterated his dedication to accountability and local control of school districts, topics he stressed in his campaign.
"When it comes to our schools, dollars alone do not always make the difference," Bush said. "So we must tie funding to higher standards and accountability for results. I believe in local control of schools. We should not and we will not run public schools from Washington."
Democrats pledged to work with Bush on his education package, even though they believe his tax cut will shortchange the education budget.
"The president has made education an important part of his agenda, and in this he has our support," said House Democratic leader Richard Gephardt. "But with tax cuts consuming almost all of the projected surplus, he cannot possibly keep his commitment to leave no child behind."
Another large chunk of the Bush budget is dedicated to health care. Bush proposed doubling the Medicare budget over the next 10 years and creating a new prescription drug benefit for low-income seniors.
The president received a rousing ovation from both sides of the aisle when he announced his plans for creating a Patient's Bill of Rights to ensure "doctors make medical decisions and patients get the health care they deserve."
Bush said he also hopes to increase medical research by asking Congress to double the budget for the National Institutes of Health.
The request is being made as a tribute to Democratic Congressman Joe Moakley, who is currently fighting cancer.
As with everything else in the budget, Bush's health care package revolves around the solvency of his tax cut.
"We can't add a Medicare prescription drug benefit, we can't improve public schools, we can't address any of our highest priorities if the president does not scale back the excess of his tax plan," Gephardt said.
"I think he had a tremendous new vision for America and a tremendous new tone for Congress and Washington," said U.S. Rep. Van Hillary (R-Tenn).
