The Nation - Bush asserts U.S. thriving on low taxes - He also says he'll veto a healthcare bill for poor children unless the program's proposed growth is pared down.
WASHINGTON — Sidestepping the turmoil in the housing market and the credit problems associated with it, President Bush said Thursday that the nation's economy was strong and would remain so if Congress steered clear of tax increases.
But he would not rate the risk of recession, saying, "You need to talk to economists. I think I got a B in Econ 101. I got an A, however, in keeping taxes low."
During a 35-minute White House news conference, Bush also said he would veto legislation intended to help the families of poorer children pay for their healthcare unless its reach was scaled down. The veto threat sets up a battle with Congress; the current program expires on Sept. 30.
"Members of Congress are putting health coverage for poor children at risk so they can score political points in Washington," Bush said.
Bush said the legislation would convert a program intended to help poor children into one covering children in households with yearly incomes of up to $83,000. That claim was challenged by Democrats and Republicans on Capitol Hill.
Supporters of the State Children's Health Insurance Program legislation expect to pass a bipartisan compromise next week to expand the program by about $35 billion over five years, extending coverage to an additional 4 million children. The federal-state partnership currently insures about 6 million children, including more than 800,000 in California's Healthy Families program.
Independent analysts say that Bush's offer -- expanding the program by $5 billion over five years -- would not sustain the program's current caseload.
The compromise closely tracks a bill approved this summer by a veto-proof margin in the Senate. It has drawn support from at least 18 House Republicans -- not enough to override the threatened veto -- as well as from a number of Republican governors.
The president's remarks Thursday set off a storm of complaint not only from Democrats on Capitol Hill, but also from some Republicans.
Sen. Charles E. Grassley of Iowa, the senior Republican on the Senate Finance Committee, said he had spoken during the morning with Bush and told him that the administration's plan was insufficient "to accomplish what he said he wants to do, and that's cover more kids."
"Drawing lines in the sand at this stage isn't constructive," Grassley said of the president's comments, adding in a written statement that Bush was mistaken in saying that the bill would help meet the healthcare coverage costs of children in households with incomes up to $83,000.
