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CNN LIVE AT DAYBREAK

Government Issues of 2002

Aired January 2, 2003 - 05:13   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

FREDRICKA WHITFIELD, CNN ANCHOR: Now to politics.
Our Bruce Morton looks at government issues of 2002 and how they may play out in the new year.

(BEGIN VIDEOTAPE)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Thank you.

UNIDENTIFIED MALE: Thank you.

BUSH: Hi, guys.

BRUCE MORTON, CNN CORRESPONDENT (voice-over): President Bush will be trying to set the national agenda, of course, helped by Republican majorities in the House and the Senate. In some areas, he's a radical Republican. His education program greatly expanded the federal government's role in the schools. Fiscally, he's a Reagan Republican, big tax cuts tilted toward the rich. And if that means deficit spending, so what?

He's pro-business, wants oil drilling in Alaska and offshore, would let coal plants pollute the air more.

Polls show voters like his leadership in the war on terror. They're less happy with how he's handling the economy and why not? The stock market just ended its third straight losing year. So Democrats are likely to concentrate on these domestic issues. Their proposed anti-recession tax cuts will be aimed at lower and middle income Americans. Their prescription drug plan is likely to involve the government. Mr. Bush's relies on the drug industry.

But the Democrats won't all be speaking with one voice, of course. Each of the presidential candidates will want to establish his own agenda. John Kerry, Joseph Lieberman, John Edwards and the rest will first be trying to raise serious money and second to find a theme that strikes a cord with the voters.

GOV. HOWARD DEAN (D), VERMONT: I don't think that Republicans are fiscal conservatives, because we haven't had a Republican president that's balanced the budget in 33 years in this country. We need balanced budgets.

MORTON: Will voters respond to that? We'll see. But they'll all be looking for an agenda that commands attention and support. And in the wake of Trent Lott's fall, the Democrats may try to use race as an issue. STUART ROTHENBERG, POLITICAL ANALYST: I'm sure the Democrats are going to keep this issue on the front burner, both to energize African-Americans, make sure they vote in big numbers in 2004, but also to appeal to swing, moderate whites to try to portray the Republicans as intolerant.

MORTON: All of these issues, these agendas, battling for your attention will play out in a Republican Congress. They'll decide what to have hearings about. But in the Senate, you need 60 votes to pass most legislation because the other side can threaten to filibuster. And Congress is more partisan than it used to be, fewer conservative Democrats, fewer liberal Republicans.

(on camera): One other note, if Congress is to do anything major this year -- Social Security, prescription drugs, whatever -- they'll probably have to do it early. Otherwise politics, planning for the presidential and congressional elections, will just take over and drown out everything else.

Bruce Morton, CNN, Washington.

(END VIDEOTAPE)

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